SUSTAINABILITY REPORT

Transcription

1 SUSTAINABILITY REPORT Copyright 2008 Beraca Overall coordination: André Sabará, Wellington Rodgério and Cassiano Braccialli - Beraca Editorial coordination and verification: REVER Consulting Writing and editing: REVER Consulting and Felipe Porciúncula Proofreading: REVER Consulting Translation into English: Alberto Bezerril and Martha Villac Beraca Berrini Unit Av. Engenheiro Luiz Carlos Berrini, Cj São Paulo SP - Brazil

2 Message from the CEOs Beraca Company profile The four business divisions Main products and services. Beraca s geography Sustainability as the focus of operations Sustainable businesses that benefit everyone Beraca s approach to the sustainability issue The challenge of implementation Identifying priority issues and future developments Innovation and development Governance People management and development Organizational climate Promotion of diversity Labor policies and benefits Career management Internal communication Working conditions Social and environmental risk management Water Technologies division operations Accident prevention Transport Training and simulations Waste management Water consumption Energy consumption Valuing natural resource Health & Personal Care division operations Organic certification Forest conservation Traceability of production stages Engagement in public interest issues Raising communities awareness to seek sustainable opportunities Local and regional development The Amazon Remuneration practices in extractivist communities Incentive to communities organization Participation in social and economic development zones in Brazil Social commitments Investment in social institutions Accession to local and international initiatives GRI Index Global Compact Principles Glossary Methodological precisions Glossary reference code: 2

3 3 Message from the Presidents Founded over 50 years ago, Beraca has had for three decades its presidency shared by Marco Antonio Sabará and Ulisses Sabará, two executives highly committed to sustainable business growth. This year you are celebrating 30 years of shared presidency. What does that mean to Beraca? This date is extremely important to us, for it crowns a cycle of work and growth linked with a new proposal of sustainable management. Our management is aligned with our mission of being through sustainable development a differentiated company to our workforce, and adding value to our customers, partners and shareholders. It also corresponds to our values and business vision for the future. How was the sustainability theme, still recent in the business agenda, included in Beraca s management? Since we took office, our challenge has been to work so as to live up to our values and principles, expressing them in our business actions. We have recently found tools that enable us to meet some of these objectives, bringing sustainability to our strategic planning as a way to manage business. Among these tools we can highlight systems that have provided us with more effective social and environmental management, such as Prodir Responsible Distribution Process, the Biodiversity Enhancement Program, and the Ecocert, FSC and SA8000 certifications.

4 4 What are Beraca s main sustainability commitments? In our values, the human being is the main actor in sustainable development. Therefore, we are committed to improving our actions towards valuing the human being. Our commitments have been translated into responses to the main sustainability issues we recognize as a priority. They are: innovation in responsible products and services, corporate governance, people management and development, valuing natural resources, social and environmental risk management, and local and regional development. We are currently working on the development of management practices, mechanisms and systems that allow planning and undertaking actions related to these themes. How do your customers and other stakeholders perceive this work? This work is perceived by the reliability created along the 52 years of our work, the involvement we have with our workforce, and the communication we establish through trade fairs and events that translate our seriousness and commitment. Over the years we have consolidated ourselves as a quality and reliable partner to our customers, suppliers and communities through win-win relationships. Our objective is to strengthen our relationship and our ability to talk and listen to all stakeholders in order to increasingly meet their expectations. What are Beraca s objectives for the next years? Growing. Growing in vision and in quality relationships, both regarding our workforce, customers and suppliers and the communities we interact with. Growing in awareness and preservation policies, and growing in increasingly cleaner technologies that will ensure the future of our children and the next generations.

5 5 Beraca Company profile Legal name: Beraca Sabará Químicos e Ingredientes Ltda. Headcount in December 2007: 213 Revenue in 2007: R$ million Revenue in 2007 (%): 10% - Food Ingredients and Animal Nutrition & Health 18% - Health & Personal Care 72% - Water Technologies Headcount in December 2007 (%): 5% - Administrative 33% - Food Ingredients and Animal Nutrition & Health 22% - Health & Personal Care 40% - Water Technologies 10% The company has four business divisions strategically focused on: Nutrition Health Personal Care

6 6 The four business divisions Water Technologies Largest distributor of chlorine and its derivatives in Brazil, Beraca is also a leader in chlorinated water treatment solutions. Present in all Brazilian states and in several countries, the Water Technologies division ensures the supply of products, equipment and technical support, and renders water disinfection services to various sanitation and industrial processes. Its customers include large public companies and leading companies in the horticulture & fruit production, dairy, beverages, meat and energy sectors. The Water Technologies division stands out for its technological innovation capacity, mainly in the search for products and solutions that foster social and environmental benefits. Health & Personal Care Through its Health & Personal Care division, Beraca stands out as one of the largest suppliers of natural and organic ingredients for the pharmaceutical, cosmetics and fragrances companies in Brazil and abroad. In the last four years, this division has grown by 28%. The raw materials used by Beraca are sourced from the Brazilian biodiversity, mainly from the Amazon. With that in mind, the company has established a closer relation with extractivist communities, which supply raw materials such as fruits, seeds, resins, nuts, bark and pulps, later processed into oils and other inputs for the above-mentioned companies. The Health & Personal Care division focuses its innovation on the search for natural vegetable alternatives to synthetic ingredients present in most beauty & hygiene products offered to the consumer. Food Ingredients The Food Ingredients division imports and distributes specialties, ingredients and additives to leading food and beverage companies in Brazil. These inputs are used in manufacturing several products that are consumed by Brazilians everyday. Animal Nutrition & Health The Animal Nutrition & Health division imports, processes and distributes a specialties line aimed at the foodstuff industry for livestock production and pets, as well as products focused on the pharmaceutical and veterinary segment. Beraca s products and services provide health, nutrition and personal care to millions of people

7 7 Main products and services Health & Personal Care Through its Health & Personal Care division, Beraca manufactures ingredients formulated with raw materials from the Amazonian biodiversity that make up products used worldwide. Beraca s lines of ingredients for health and personal care products: Rain Forest Specialties: fixed oils, essential oils, extracts, resins, clay, butters and other natural specialties from Brazil. Active Performance Systems: bases and natural products with blended actives for several applications in the cosmetics and pharmaceutical industry. BioScrubs: natural scrubbing agents. Water Technologies Beraca offers customized chlorinated water treatment solutions for customers from the food, beverages, meat, energy, sanitation, and water distribution industries. The Water Technologies division solutions consist of chlorine in several formats and product application equipment, besides technical support services.

8 8 Beraca s geography Presence in Brazil Beraca has seven units in Brazil, and its production, research and distribution operations are located in five different states. Itapissuma Unit - Itapissuma, Pernambuco Pacatuba Unit - Pacatuba, Ceará Anápolis Unit - Anápolis, Goiás Chlorine production and development of Water Technologies solutions Santa Bárbara Unit - Santa Bárbara d Oeste, São Paulo Chlorine production and development of Water Technologies solutions Support to research and innovation of Health & Personal Care products Ananindeua Unit - Ananindeua, Pará Production of oils, actives and butters derived from raw materials sourced from the Amazon rainforest for the Health & Personal Care lines Research and development of features of the region s natural ingredients Penha Unit - São Paulo, SP Distribution of products of the Food Ingredients and Animal Nutrition & Health divisions. Research and development of features added to the products distributed Berrini Unit - São Paulo, SP Company s head office and administrative unit The plants location was chosen based on three criteria: Transport optimization and products logistics The decentralization of units brings Beraca closer to its customers and facilitates regional service. The Anápolis unit, for example, is strategically located in the Agribusiness Park, a region in the State of Goiás that has access to federal railroads and highways. This format combines delivery time and cost reduction with better supply quality and better use of the infrastructure available. Participation in regional development zones Beraca seeks to participate in the development of industrial zones set up by state governments. This policy produces gains both for the company which benefits from fiscal incentives and for the local population which is provided with more job opportunities in a prosperous and dynamic area. The Itapissuma, Pacatuba and Anápolis units have been built with this vision. Proximity to suppliers, customers and local extractivist communities The input production operations of the Health & Personal Care division have been concentrated at the Ananindeua Unit due to its strategic proximity to the extractivist communities, which enables a better development of relationships, logistics and research in partnership with institutions of the Amazon region.

9 9 International presence Since 2008, Beraca has established a sales office in Paris, France, aimed at the large European companies in the cosmetics sector. Beraca also intends to establish a foothold in the United States, and plans to open an office there in Beraca s current international presence is based on a network of distributors located in 47 countries in Asia, Europe, the Americas and Oceania. Beraca is a 100% Brazilian company that exports biodiversity products to 47 countries

10 10 Sustainability as the focus of operations Beraca integrates the concepts of sustainability into all its activities. That means the company s operational decisions are made by taking into account environmental, social and economic aspects. Water treatment Beraca is constantly working on the development of specific water treatment technologies, since preserving the planet s existing water sources have become one of the greatest concerns of the new millennium. Its solutions effectively help governments and companies to preserve water and ensure supply to large urban and rural populations. Currently, the company is present in over 15 thousand municipalities throughout Brazil, and more than 47 million people benefit from high quality, treated water. According to the World Health Organization (WHO), every R$ 1.00 invested in sanitation saves R$ 4.00 to 5.00 in public health expenses. The UN (United Nations Organization) declared 2008 as the International Year of Sanitation with the purpose of encouraging countries and the society to create conscious solutions due to the importance of sanitation to development Importance of chlorine to health Historically, chlorinated water treatment is associated to the elimination of diseases and improvement of life conditions and expectancy in populations. According to the UN, 80% of the diseases in developing countries result from water contamination The UN aims to cut by half the number of people in the world without access to drinking water by 2015 Due to its disinfectant features, chlorine is the main agent currently used for public health purposes Chlorine prevents the proliferation of diseases such as cholera, dysentery, typhoid and schistosomiasis, still frequent in underdeveloped areas. Sources: Abiclor (Brazilian Chlor-Alkali and Derivates Industry Association) / United Nations

11 11 Protecting and valuing the Brazilian biodiversity Beraca is the largest Brazilian company with a plant in the Amazon processing natural raw materials of that region. All this work is carried out in compliance with the laws in force, and contributes to the local development of extractivist communities. The Amazon The Amazon rainforest covers approximately 5% of the planet s area, with 4.1 million km2 of forests only in the Brazilian territory. Besides containing one third of the world s tropical forests, the Amazon has the largest river in water volume, accounting for one fifth of the planet s current drinking water sources: altogether, there are 7.3 million km2 of basin and 1,100 tributaries of the Amazon River. These features make the region a rich source of natural resources such as wood, rubber, nuts, fish, ore, and plants, of which oils and essences are extracted for medicinal, cosmetic and food purposes, among others. Its tropical forests are estimated to be home to 10% of all species known on Earth. Source: WWF In Beraca s opinion, the Brazilian biodiversity is not only a business opportunity, but also an opportunity to incorporate important concepts into its products: respect for the culture of local communities social inclusion development of regional economies environment conservation

12 12 Sustainable businesses that benefit everyone Beraca s sustainability-focused performance allows the company to foster new business opportunities, always taking into account the expectations of the company s various stakeholders. Sustainable development initiatives Application of SA8000 in supply chain and internal stakeholder management Biodiversity Enhancement Program Responsible practices in the production and distribution of chlorine and its derivatives through Prodir Responsible Distribution Process Focus on research and development of water treatment products for the reduction of environmental impacts Application of Ecocert and FSC certifications in products sourced from the Amazon Impacts on Beraca s business Access to financial resources Access to national and international markets concerned about the social and environmental issue Differentiated offer of Brazilian biodiversity-sourced products and innovative water treatment services Added-value brand due to awards and certifications More effective social and environmental risk management Benefits to society Preservation of natural resources and the Amazonian biodiversity Contribution through water treatment to improvement in public health Supply of quality natural products Insertion of extractivist communities in the global market Preserving and valuing traditional Brazilian cultures Supply of safe products and services Social and economic development of extractivist communities

13 13 Beraca s approach to the sustainability issue The challenge of implementation Defining sustainability as a performance focus and an integral part of the company s activities was an important step taken. Sustainability, which was earlier a corporate concern, now is part of Beraca s business strategy. As part of Beraca s senior management agenda, dealing with new situations has become a huge and constant source of learning. Engaging internal stakeholders and defining internal actions: Aligning the senior management with the middle management around the meaning and importance of the sustainability concept Disseminating responsible/sustainable practices throughout the company Developing a structure to meet sustainability-related demands Prioritizing actions and defining a path for implementing sustainability Implementing pioneering environmental standards and certifications to reduce social and environmental impacts and fostering occupational health and safety Developing products in a responsible way Engaging suppliers and customers: Developing a supplier network aligned with Beraca s sustainability requirements Fostering markets interested in sustainable products Integrating into environments where the company operates: Understanding the differences among regional cultures and turning them into added value Making social investments to contribute to local development Engaging external stakeholders: Identifying the company s stakeholders and their expectations Learning more about our main stakeholders (extractivist communities, academia, NGOs, etc.) and defining actions to engage them

14 14 Identifying priority issues and future developments Aware of the opportunities for the company s progress, Beraca partnered with REVER Consulting to identify the most relevant sustainability themes for its operations and set implementable priorities. This work was based on the application of the RUMO methodology, developed by REVER, which includes documental analysis and interviews with internal and external stakeholders. The sustainability issues identified as priority for Beraca are the following: 1. Innovation in responsible products and services 2. Corporate governance 3. Workforce management and development 4. Social and environmental risk management 5. Preservation of natural resources and biodiversity 6. Local and regional development RUMO methodology:

15 15 Each of these issues was integrated to the structure of this report to enable the reader to understand its completeness and the way they are being addressed by Beraca REVER Consulting s recommendations encourage Beraca to keep on structuring the sustainability process in the months to come. The Sustainability Committee will be given the task of analyzing the company s practices for each priority issue in order to create opportunities for improvement at each of its units. A planning work will be carried out to set targets in dimensions such as: implementation of new solutions, internal and external communications, development of relations and dialogues with stakeholders, definition of progress indicators, and accountability.

16 16 Innovation and development Beraca is constantly investing in innovation by establishing its teams of scientists and forming strategic partnerships with educational and research institutions in Brazil and abroad. Health & Personal Care division s research and development Belém unit concentrates innovation-related activities in Health & Personal Care, where new technologies have been applied to research in the region. In the last three years, Beraca has invested about 3% of its net operating income in research and development of sociobiodiversity products. In addition, some US$ 8 mi have been invested in industrial facilities and in forest management and organic certifications. Examples of innovative products developed by Beraca s Health & Personal Care division Beracare BBA Natural, organic and plant-based conditioning agent derived from pracaxi. It equals the performance of other conditioning agents, but has no chemical products. Powdered oil Beraca has developed an exclusive technique for turning the oil extracted from some species into powder. This format increases the stability of products and their durability when applied to make-up and hair dyes. The Active Performance Systems line has five products developed with exclusive Beraca technology.

17 17 Cooperation agreements for technological development Beraca establishes strategic partnerships for research and development of raw materials. Such researches focus on the study of vegetable materials and their active principles, and aim at developing inputs for the national and international cosmetics industry. A good example of these partnerships is the one between Beraca and cosmetics sector multinationals. While Beraca has access to communities that supply differentiated raw materials, large companies invest in technology for the researches carried out. L Occitane has always believed sustainability is key to a company s operations. And Beraca has and practices all the sustainable chain, which makes us confident in our business relations turned into a strong and lasting partnership. Beraca unquestionably has deep knowledge of its business, assures high quality of the ingredients and works in a sustainable way, thus ensuring biodiversity preservation and the development of communities it relates to, such as, for example, the Marajó Island. I acknowledge that Beraca inspired the Brazil-France joint development project for the creation of the Sol do Brasil line. Its know-how in the design of products and definition of ingredients was critical in this process. Beraca recommended buriti, cupuaçu and Brazil nuts as active principles due to their properties, able to power a sun protection line. Our sunscreen is differentiated: it uses physical sunscreen, which reflects the sun s radiation, and not a chemical one, which absorbs the radiation into the skin. Reinold Geiger, President of L Occitane, and Olivier Baussan, its founder, have always been fond of Brazil and dreamed of developing a project like this in the country. The close identification with Beraca in terms of values and philosophy, since the beginning of the relationship, has let this dream come true. Despite the constraints related to the country s infrastructure and bureaucracy, we have decided to invest. We have also met the challenge of working together, overcoming the cultural differences between Brazil and France. L Occitane is present in 88 countries and, despite its global presence, this is the first time a line is totally developed outside France, from product design to its distribution. When I saw the label written in Portuguese, I was very proud! It had never been written before in a language other than French. The partnership s huge success, growing closer and closer, encourages us to think of new proposals. Silvia Gambin Founder Associate and General Manager of L Occitane in Brazil

18 18 The company also partners with educational and research institutions such as Unicamp (State University of Campinas), ESALQ (University of São Paulo s School of Agriculture Luiz de Queiroz), Butantan Institute, ITEP and UFPE Pernambuco, UFPA - Pará, ASTEF Ceará, and Università degli Studi di Siena (Italy). Besides being centers with specialist researchers, these institutions offer their infrastructure for the researches. Beraca: winner of 5 FINEP Awards Beraca has been awarded five times the FINEP (Research and Projects Financing) prize, which acknowledges the technological innovation of Brazilian companies in 2002, 2003 and 2004 in the North region, and in 2005 and 2006 in the Northeast region of the country. von Martius Environmental Award In 2005, Beraca was granted the Karl Friedrich von Martius Sustainability Award by the Brazil-Germany Chamber of Commerce. The project entitled Technological Development in Sustainable Use of Non-Timber Forest Products for the World Cosmetics Industry was welcomed by the industrial community for showing the innovative technologies used by Beraca to help preserve forests.

19 19 Water Technologies division s research and development Exclusive solutions for water treatment and basic sanitation The company has two chlorine-related processes for developing and disseminating environmental protection technologies: Chlorine dioxide (Diox ): the investment in chlorine dioxide (ClO 2 ) research has led to the reduction in environmental impacts of water treatment processes. The system for generation of chlorine dioxide was developed and patented by Beraca in Brazil. Poly aluminum chloride (PAC): enables the reduction of environmental impacts, due to lower generation of solid waste in the effluents discharged by companies and water treatment plants. Chlorine dioxide and poly aluminum chloride (PAC) in Brazil For a long time, lack of knowledge about the advantages of applying chlorine dioxide and the high cost of importing this technology prevented its large-scale use in the domestic market. With the technology developed in Brazil, Beraca has enabled its application in water treatment. An effective oxidant, chlorine dioxide has set a new standard in the supply of clean water in the country. This technology is used by Beraca in CAGECE (State of Ceará Water and Sewage Company), the largest water treatment plant with chlorine dioxide in Latin America. The application of poly aluminum chloride and the chlorine dioxide generation system in the Gavião water treatment plant in the city of Fortaleza has helped increase the volume of treated water by 12%. This has provided the population with better quality of water and public health. When supplying its products and services to COSANPA State of Pará Sanitation Company, Beraca uses its own equipment at no additional cost in the operation. This equipment, besides improving social and environmental risk management, enables a better chlorine dosage service, which improves water quality for the population.

20 20 Governance Beraca s vision, mission and values Vision To be a differentiated company in technology, innovative and sustainable products aimed at the water and effluent treatment, cosmetics, food and animal nutrition and health markets, according to excellence standards in quality, corporate governance, and environmental preservation. Mission To be a differentiated company that fosters the development of its employees creating value for its customers, partners and shareholders through sustainable development. Values Respect for personal individuality and dignity Respect for the Environment Research and Innovation Profitability and financial health Equity, transparency, ethics and morality (Principles set out in the Global Compact and the Millennium Development Goals ) Best practices and corporate standards established by PRODIR, SA8000, FSC, ECOCERT, and the BERACA Quality Manual Long-term partnerships with scientific organizations and local communities in the introduction and dissemination of innovative technologies and products with the due and fair remuneration and sharing of benefits, and agreements with national and international companies seeking mutual gains in innovation, technology, and quality products.

21 21 The process of improving corporate governance started this year at Beraca through a plan that will guide the company towards changing from a limited liability company to a business corporation in the next few years. The company has hired an international consulting firm to support the implementation of a plan that will have been implemented by Below are its main goals: Commitment to corporate governance through the development of a Code of Ethics and a long term planning in accordance with the company s business plan Restructuring the Board of Directors with members that are independent of the management and the owners, as well as an Audit Committee Control, accountability, reporting and audit systems in compliance with the highest international standards Holding annual meetings with shareholders informing Beraca s strategies, policies and operating results Setting up a Family Board Another measure to be taken by the company will be the translation of its financial results into the International Financial Reporting Standards (IFRS). Committees The company currently has four committees, whose members are appointed by the Board for a one-year term. The Strategic Planning, Business Management, Advisory and Sustainability committees work in an integrated manner, and the Sustainability committee focuses on the social and environmental aspects of the issues discussed by the other committees. The first meeting of the committees was held in August Board of Directors The Board of Directors consists of the members of the founding family. Its role is to define the duties of the Committees, which must regularly report on the progress of the work done, and to review the achievements so as to ensure synergy for best governance practices. Strategic Planning Committee Goal: developing the strategic planning. Bimonthly meetings. Business Management Committee Goals: aligning shortterm strategies and products; assessing results obtained in the projects; proposing corrective measures. Bimonthly meetings. Advisory Committee Goals: implementing, monitoring and correcting HSE (health, safety and environment), transport and storage & handling programs. Quarterly meetings. Sustainability Committee Goal: ensuring the integration of sustainability at Beraca by planning social and environmental actions. Biannual meetings. Beraca reinforces integration of high corporate governance standards to structure its growth

22 22 People management and development People management and development is one of the priority sustainability issues at Beraca. The company believes human capital is its most important resource, which makes each of its 213 employees key to the success of its operations. This vision translates the company s commitment to the development of innovative and effective management, which will provide each Beraca employee with opportunities for professional and personal growth. The following pages will show human resources policies implemented by Beraca. Organizational climate Beraca measures its employees level of satisfaction to identify opportunities for improvement. Since 2004, the Organizational Climate Survey is carried out annually. Employees participation is voluntary. The questions cover the following issues: Benefits and services Working conditions Leader s performance Work environment Communication and identity Commitment to the company The latest survey, conducted in 2007 at all units of the company, was responded to by 76% of the employees, and the level of satisfaction reached 73%. The workforce assessment tool is being perfected by Beraca so as to raise awareness of each employee about its usefulness. The idea is to work, based on its results, on an individual development plan with employees and their supervisors. The company recognizes that is must play the role of facilitator in developing technical competencies and behavioral skills.

23 23 Promotion of diversity Beraca s recruiting and promotion process is based on the professional performance of the individuals. The company fosters diversity through written rules that forbid discriminatory practices and provide guidance on reporting potential claims. Women Beraca promotes gender equality and women s autonomy as part of its commitments to the UN (United Nations) Millennium Development Goals. Percentage of women in the workforce 36% 36% 28% in coordination and management positions in relation to 20% 20% 20% the total number of positions in this hierarchy level in the Board of Directors - - 8% Ethnic and racial diversity Beraca strictly complies with the laws in force forbidding racial discrimination at work, and openly rejects any type of prejudice, not only against its employees, but also against any other stakeholder. Beraca will define its ethnic and racial diversity program based on the findings of an ongoing internal survey. People with disabilities The company s premises are currently being adapted according to a project that aims to facilitate the access to people with special needs. The company also has a policy on people with disabilities and special needs in compliance with the provisions of the labor law.

24 24 Labor policies and benefits Labor policies Beraca complies with the laws and collective agreements, thus meeting the standard of the industry and the needs of its collaborators and employees. The company strictly complies with the labor laws, especially the Brazilian Labor Code (CLT), the Labor Standards and International Conventions. Remuneration and benefits Beraca s remuneration, benefits and career policy values potential competencies, motivating employees through remuneration and investment in their professional development, taking into account their ability to grow and develop new skills. Each unit of the company has a daily meal voucher with a defined amount for its employees. The company complements the remuneration with a monthly meal coupon. All of Beraca s employees and their families benefit from life insurance, health plan, dental plan, and special discount in drugstores. A periodical assessment of the employees level of satisfaction with the health plan is made, and potential adjustments are scheduled according to its results. Beraca supports the law that extends maternity leave to six months, and provides financial aid to female employees for 24 months after delivery. Education and health Beraca monitors school enrolment and vaccination cards of employees children as an incentive to basic education and health. The company promotes physical activities and well-being measures including health and working conditions monitoring, educational lectures and vaccination campaigns. The company developed in 2008 a pilot program at its Anápolis unit: Corporate fitness at the Anápolis unit With the purpose of valuing workforce health and well-being and preventing potential occupational injuries, Beraca has implemented at the Anápolis unit, State of Goiás, a corporate fitness program. The activity started last May and is aimed at all the company s employees, collaborators and service providers. Approximately 32 people have already joined it. In partnership with (private health care provider) Unimed de Anápolis, this program takes place twice a week at the end of working hours, and lasts 15 minutes. This initiative increases integration and rapport, stimulates workforce productivity and contributes to quality of life.

25 25 Career management Beraca offers training sessions to its employees, mainly in the areas of occupational health and safety, following the criteria established by SA8000 and Prodir. In 2008, training sessions totaled 153 hours: Divisions Hours x man per year Water Technologies 86 Health & Personal Care 46 Food Ingredients + Animal 68 Nutrition & Health Administrative 53 As part of compliance with the labor laws, Beraca annually holds the SIPAT (Internal Week of Workplace Accident Prevention) to its employees. In 2008, the lectures addressed themes like sustainability in the Amazon, personal finance, motivation and citizenship. The company is establishing a partnership with SENAI (National Service of Industrial Apprenticeship) that will result in a series of training sessions for Beraca s employees divided into the following modules: health, safety, environment, citizenship, social, and quality. Also as an incentive to career development, the company supports employees that wish to enter undergraduate, graduate and master s programs. Internal communication The company found out that communication among employees of different units and divisions could have a more harmonious flow of information so as to contribute to effective operations. This year, in order to improve Beraca s internal communication, the Communication Action Plan is being implemented this year. It is based on the development of the intranet, a newsletter published every two months, the corporate website and a mascot, the capybara Abaré, whose name means friend in the indigenous tupi language.

26 26 Working conditions SA8000 at Beraca SA8000 (Social Accountability 8000) is an international standard that assesses corporate social responsibility. It provides all the requisites and an audit methodology for a correct assessment of the conditions in the workplace, including: child labor forced labor occupational health and safety freedom of association and collective bargaining discrimination disciplinary practices working hours compensation and management systems Beraca has been SA8000-certified since The most recent SA8000 system monitoring process was carried out in March 2008 by BRTUV at the Penha, Berrini and Santa Bárbara d Oeste units, all three in the State of São Paulo. Internal and external audits are performed at least once a year, and all units are expected to be certified by the end of In 2004 and 2007 elections for Social Representative were held at Beraca. In each election, three representatives are chosen one of the company s Board, one of the employees and one responsible for occupational health and safety, within the scope of SA8000. The employees representative represents them before Beraca s top management, reporting potential workforce claims. Finally, Beraca has developed a Social Responsibility Manual and Policy, which is being offered for reference at all units and also on the company s intranet.

27 Social and environmental risk management The Water Technologies division uses chlorine to provide water treatment solutions to its customers. Like any other chemical substance, chlorine and its derivatives should be handled properly, thus preventing risks both to the society and the environment. Since Beraca belongs to the category of chemical products distributor, its operations comply with international social and environmental risk management standards. 27 Throughout its operations, Beraca prioritizes environment and society protection Besides being concerned with its employees and customers health and safety, Beraca monitors the potential environmental impacts deriving from its products manufacturing and distribution. In 2003, Beraca voluntarily adopted the Prodir Responsible Distribution Process, a social and environmental risk management system based on measurement, monitoring, audit and accountability principles. In 2004, Beraca became the first Brazilian chemical company of the chlorine sector to be Prodir-certified. The adoption of Prodir by all associates of the Brazilian Association of Chemical Products Distributors (Associquim) became mandatory only in 2008, which places Beraca as a social and environmental protection leader in its sector.

28 28 Water Technologies division operations Prodir Responsible Distribution Process Prodir is a quality system that prioritizes health, safety and environmental issues in all actions performed by chemical products distributors. Coordinated by the Brazilian Association of Chemical Products Distributors (Associquim), Prodir is an adaptation of the Responsible Distribution Process program of the US and Canadian associations of chemical distributors (NACD and CACD). Prodir codes and practices address the following issues: Risk management Compliance with legislations and standards Carriers selection Handling and storage Work and training procedures Waste management First aid measures and community preparation Integration with the community Product management Internal audit Preventive and corrective actions Documentation and data control Aiming to ensure that companies comply with the Prodir quality standard, the certification is renewed every three years through audit. Source: Brazilian Association of Chemical Products Distributors (Associquim) Besides chlorine -related activities, Beraca has expanded Prodir s guidelines to the Health & Personal Care, Food Ingredients and Animal Nutrition & Health divisions. With this initiative, Beraca aims to integrate all the company s activities with the highest health, safety and environmental standards, as well as encourage the development of more effective processes throughout the organization. Through the adoption of Prodir, Beraca commits to: Informing and training its employees in safe handling and storage procedures Providing its customers with information about its products through the MSDS Material Safety Data Sheet Choosing adequate sites for building its units and informing the surrounding community about its products Minimizing waste and pollution resulting from industrial processes, as well as performing effluent treatment pursuant to the Brazilian Association of Technical Standards (ABNT) environmental protection standards. Beraca provides periodical training to customers, employees and the surrounding communities in the most adequate way to handle its products. In addition, simulations are carried out to guide them on how to behave in case of unexpected events and potential accidents.

29 29 Accident prevention In the last four years, Beraca received the Zero Accident certificate issued by S.O.S. COTEC, attesting to the absence of environment-related accidents in the transport of chemical products. Since 2004, the company has made available a nationwide Emergency First Aid Plan for hazardous materials accidents, including round-the-clock rescue car and first aid team, every day of the year. In 2007, Beraca was invited to represent Associquim at the State of São Paulo Department of Transportation Accident Analysis Subcommittee for the Paulínia area, providing guidance on chemical products accident prevention. Transport For product distribution, Beraca has its own fleet, but also hires the service of carriers that comply with Sassmaq (Safety, Health, Environment and Quality System), created by Abiquim (Brazilian Chemical Industry Association). This system aims to reduce the risk of accidents in chemical products transport and warehousing operations. It ensures, among other things, that drivers are duly trained to transport such products and are equipped with Personal Protection Equipment. Companies hired must also comply with requirements concerning maintenance, insurance, trucks useful life control, and training focused on issues such as the importance of drivers rest for safe driving. In the last few years, Beraca has been working on the optimization of transport processes. Besides making them increasingly safer, this work has also resulted in better fleet use and decrease in the number of vehicles and trips needed for transporting the same volume. In this way, Beraca also contributes to reducing greenhouse gas emissions (CO2).

30 30 Training and simulations Beraca has internal and external emergency plans. Units are equipped with evacuation and fire alarms so that the fire department, houses and other companies in the surrounding area are warned in case of emergency. Beraca s representatives make known to the surrounding community telephone numbers to be called in case of incidents. Beraca carries out training sessions in partnership with its customers and the local fire department. Besides providing theoretical information on how to deal with incidents involving chlorine, Beraca also performs simulations of potential events. All participants are awarded a one-year certificate. Beraca also participates in the Mutual Assistance Plan (PAM), a joint work carried out by Brazilian Chlor-Alkali and Derivates Industry Association (Abiclor) member companies to provide assistance in case of accidents in the transport of chlorine. Waste management Waste recycling and reuse in Itapissuma At the Itapissuma unit, in Pernambuco, Beraca s main operation is chlorine cylinder bottling for distribution to customers. A Solid Waste Management System has been implemented at this unit, enabling Beraca to monitor solid waste generation from information about its origin and quantity. The company has adopted procedures regarding waste storage and destination by type, as follows: Solid waste from ETEI (Industrial Effluent Treatment Plant), containing non-toxic substances Ferrous metals scrap Non-ferrous metals scrap Paper, cardboard and plastic scrap Fluorescent and incandescent bulbs Contaminated empty packaging Used tires

31 31 Water consumption Water use is strictly controlled at all Beraca units to reduce wasteful use and prevent unnecessary costs for the company. As part of the initiatives to cut water consumption, the Belém unit has installed water saving devices in its restrooms faucets. The other units will also have the same system installed. The implementation of a rainwater collection system for flushing is also underway at all units. Energy consumption In all Beraca s sites energy consumption is measured and employees are told how to optimize its use. Beraca prioritizes open installations with wide windows and glass doors to benefit from sunlight. In addition, some units already have energy-efficient outdoor lighting. Thiago is a lab technical assistant at the Itapissuma unit

32 32 Valuing natural resources The Health & Personal Care division identifies vegetable ingredients with high potential for use in cosmetics, fragrances and pharmaceutical products. At the Ananindeua plant, in the Belém metropolitan area, Beraca processes seeds, resins, nuts, bark and pulps from native forests or cultivated in farms, and refines fruit oils. Most of these non-timber forest products come from the Brazilian Amazon. By buying organic açaí, cupuaçu and Brazil nuts from the Caiapó indians, Beraca promotes sustainable extraction that generates income for the community The development of products from the Brazilian biodiversity has been part of Beraca s strategic vision since 2001, through the creation of the Biodiversity Enhancement Program. The program team comprises environment experts including professionals with technical, undergraduate, Master s and Ph.D. degrees.

33 33 Health & Personal Care division operations Organic certification The three product lines of the Health & Personal Care division present items certified pursuant to environmental or organic production criteria. Some products are certified in both categories. Since 2006, Beraca s production system has been Ecocert-certified, and around 40% of the raw materials supplier communities are already certified. The goal is to increase this figure by providing capacity building to farmers and extractivist communities aimed at adjusting the communities to the organic certification criteria. In order to be Ecocert-certified, both Beraca and the supplier communities have their operation sites submitted to annual inspection. At the Ananindeua plant, the organic certified raw materials are processed and stored separately. At the end of the process, the products can be identified and differentiated by organic and non-organic certified product packaging. Ecocert certified products Ecocert is a French certification organization, with an office in Brazil, which follows the criteria of the USDA Organic, the accreditation agency of the United States Department of Agriculture What are organic products? To be considered organic, a production system must apply technologies that make the best possible use of natural, social and economic resources, both in agricultural and industrial products. This system aims to become self-sustainable, maximize social benefits, and use renewable sources of energy whenever possible. In addition, in any stage of the manufacturing, storage and consumption process, the following shall not be used: pesticides and other toxic artificial inputs genetically modified organisms ionizing radiations Products conditions are checked in facilities used for: agricultural or extraction production storage, packing and processing sales / export Source: Ecocert Brazil / Ministry of Agriculture, Animal Husbandry, and Supplies

34 34 Forest conservation Beraca considers forest conservation the best way to ensure the economic potential of natural resources for the future. Therefore, the company seeks to work together with the communities to raise awareness about the importance of keeping forests alive. As a practical forest conservation measure, since 2004 Beraca has bought copaíba and Brazil nuts from Forest Stewardship Council (FSC) certified communities, which makes the company part of an environmentally responsible chain of custody. Products sourced from certified raw materials are sold to Beraca s customers with the FSC label, thus guaranteeing customers also take part in the chain. Forest Stewardship Council (FSC): Brazilian Council for Forest Management FSC is the world s most renowned green label, present in all continents and in over 75 countries. FSC certification requires that operations in the forest be: Ecologically appropriate: using techniques that imitate the forest s natural cycle and minimize impacts, thus allowing its renovation and permanence, as well as the preservation of existing biodiversity in the certified area. Socially beneficial: the ownership of a forest area and production activity must be legal, which means paying all taxes and respecting labor rights such as occupational safety. The FSC certification process is transparent, allowing its inspection by any civil society entity or individual. In addition, FSC s principles and criteria have been set with equal consideration of the three sectors: environmental, social and economic. Economically viable: the forest management techniques required by FSC increase the forest s productivity, ensure investment durability and add value to the product. A product bearing the FSC label has more access to new markets due to its high demand, but still insufficient offer. Source: FSC Brazil

35 35 Traceability of production stages Beraca s natural inputs production chain starts at the extractivist communities of the Amazon region and ends at the personal care and health products consumed all over the world. As an intermediary actor in this chain, Beraca needs to guarantee its production, extraction, processing, and inputs and products transport activities meet the sustainability demands of the market and the society. For this reason, tracing the entire process is of paramount importance. Through its Biodiversity Enhancement Program, the company ensures control and monitoring of product origin and manufacturing throughout this chain. In this way, expected quality standards of products delivered are ensured, thus meeting international quality and sustainable production requirements. Keeping the product s features is one of the challenges faced in natural ingredients processing. This challenge results from extraction difficulties and transport and distribution hindrance in the region, and meeting it also depends on the communities commitment. In the Sustainable Development Reserve of Cujubim, families supply copaíba and andiroba oil to Beraca and receive training in oil harvesting and storage (for further information, access Beraca.com) The Program s principles involve three main spheres: People: Beraca works with local communities, developing a close relationship of mutual trust. The tradition of the peoples is valued when promoting regional development Natural resources: extractivist activities are based on the FSC forest management sustainability, conservation and certification criteria Organic products: adoption of the Ecocert seal to ensure production processes free from chemicals To manage the Biodiversity Enhancement Program, Beraca has developed a social and environmental management system that sets forth procedures for the acquisition of forest inputs. The system s actions include the compliance of extraction and supply operations with the Brazilian environmental legislation and with international standards such as the Convention on Biological Diversity (CBD), besides the required certifications.