SUSTAINABILITYREPORTSUSTAINABILITY REPORT 2015 & 2016
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GRI G4-28
Dear reader, welcome to our Sustainability Report 2015 & 2016!
This publication aims to present Embraco’s most important eventsand achievements between January 1, 2015 and December 31,
2016, as well as the economic, social and environmental impacts of
our activities.
The next pages contain information about our strategy, the principles
that guide us, how we produce, the profile of our talents, the impacts
we generate, and all of this in a simple and integrated manner.
In order to help us gather all of these aspects into a single
document, we voluntarily use – for the 13th consecutive time – theGlobal Reporting Initiative (GRI) guidelines, an organization created
to provide a framework for reporting sustainability, which is now
adopted in more than 60 countries.
We appreciate your interest and we hope you will discover new
information about how we produce the cold, transform the present,
and lead the future.

Good reading!

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CONTENT

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Survey with Stakeholders

Survey with Stakeholders

GRI G4-18 | G4-19 | G4-23 | G4-24 | G4-26 | G4-27 | G4-29 | G4-30
The Sustainability Report is a document that aims to be interesting
and relevant to all our stakeholders. That’s why, in order to define thecontent – that is, to select which aspects of our operation should be
addressed here – we consult these publics seeking the most relevant
themes to our operation.
This survey was conducted in 2014 which involved face-to-facemeetings, for more in-depth information, and online questionnaire
to increase our sampling and listen to the largest number ofstakeholder representatives.

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GRI Indicators

Material Aspects
In order to use the input generated by the stakeholder survey and to discover what aspects they consider to be the most relevant, we place theaspects gathered during the survey onto a relevance matrix that balances our internal publics on one axis and the external on another.
The most relevant aspects for both publics (internal and external) are considered as “material aspects” and now drive the process of surveying
and gathering information.
The result of this process identified, in this period of 2015 and 2016, the following material aspects, which guide this report:

Materiality Matrix

MATERIAL ASPECTS
1. Research and innovation in product development;

EXTERNAL STAKEHOLDERCONTENT

environmental
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2. Encourage best socio-environmental practices in the supply chain;
3. Ability to retain workforce;
4. Employee training, education and development;
5. Occupational health and safety management;
6. Process waste and effluent management; and7. Financial management of risks and climate change opportunities.
INTERNAL STAKEHOLDER

Embraco’s main stakeholders:Shareholders, customers, companies from the Group,
employees, suppliers, communities surrounding ouroperations and third parties.

GRI Indicators
Once the material aspects were identified, we correlated them with the GRI Guideline’s aspects and selected a series of indicators that helped us addresseach of these issues in more depth.
Collection of these indicators was done by a transdisciplinary work group, made up of professionals from different areas of Embraco, and the information
generated is marked in the text by the symbol GRI G4. It’s also possible to have an overview and to know all the GRI indicators in the reference index,
located on page 62.

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Message from Leadership

MESSAGE FROMLEADERSHIPGRI G4-1

The world is changing fast. The refrigeration market has quickly evolved.
Innovation is part of our company’s DNA and, more than just keeping up
with this evolution with agility, we seek to be true protagonists of what’s
to come.
Our Vision “To be leader everywhere by 2020 and recognizedby customers as the preferred partner” is what drives our wayof doing business. In the last two years, we’ve intensified the culturaltransformation within the company aiming to become even simpler,
more innovative and customer-centric. The challenge of doing things
differently has brought new opportunities in all our units, whether inrevenue generation, cost optimization or working capital improvements.
In this dynamic of transformation, we’ve maintained sustainability in ourplans as an essential part of our strategy. Therefore, with the mission tooffer innovative solutions for a better quality of life, we operate
through three complementary work streams: Sustainable Products,
Sustainable Value Chain and Engaged People.
With the goal to have increasingly sustainable products, we
continuously invest in Research and Development (R&D). Our focus ontransforming technology into innovation challenges us to go further andkeeps us as a global benchmark in the refrigeration market.

To transform our value chain in the long term, in 2015 we began ascientific study that maps and quantifies the potential environmental
impacts generated by our products (before, during and after being
produced and marketed), called Life Cycle Assessment. With LCA, we’vealso been able to identify critical points to further reduce our ecologicalfootprint.
In our factories, we introduced WCM (World Class Manufacturing) toachieve the desired transformation. This is an operational excellence
program, strong in people development, started in 2013, and is being
deployed in all our plants. WCM showed us that it’s possible to dreamabout “zero”: zero defect, zero accident, zero breakdown. More than this,the methodology has taught us that it’s possible to realize this dreamby integrating teams and rigorously executing the manufacturing andoperations process.
Another important sustainability initiative has advanced significantlyin the last two years: Nat.Genius. This operation has transformed thereverse logistics process of electro-electronic waste into a profitablebusiness and has begun recycling several product lines, consequently
helping to manage our own waste and of other customers in Brazil,
Europe and North America.
We’re proud of the journey we’ve traveled so far and this has only beenpossible because we count on an extremely high-caliber engaged team,an industry benchmark, full of the spirit of winning and passionate increating, day after day, extraordinary experiences through innovation.
We constantly seek to develop our employees through challenges – wevalue diversity and, above all, we attach great importance to everyone’s
safety as well as the quality in everything we do in our plants.

This report’s publication gives me the chance to once again renew ourcommitment to the 10 Global Compact principles and to reinforce our
support for the 17 Sustainable Development Goals established by theUnited Nations (UN).
In the next pages, you’ll have the opportunity to know in more depth themain highlights of a biennium in which we decided to reinvent ourselves
and overcome barriers. And how we’re making it happen.

Luis Felipe Dau

CEO Embraco

PROFILE

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PROFILEOur Transformation
Strategy

GRI G4-3 | G4-4 | G4-5 | G4-6 | G4-8 | G4-9

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47 research laboratories
on four continents

Our compressors are used around the world in
equipment such as refrigerators, freezers, as well as
industrial machines such as refrigerated counters.

EMBRACO
UNITED STATESDuluthOffice andDistribution Center

EMBRACO MEXICO
Monterrey
Compressor factory

Sustainability

46 years bringing
a better quality oflife to people.

Annual R&D
investment of 3%
to 4% of net revenue

EMBRACO SLOVAKIA
Spisská Nová Ves
Compressor andCooling Systems Factory
KošiceShared Services Center

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Products and Technologies

1/5 of theplanet’s food ispreserved using
Embraco technology

1,700 patents in force.

We’re Embraco, a reference in technology for household
and commercial refrigeration, with 46 years of history,
and one of the world’s largest manufacturers ofhermetic compressors, the main component responsible
for producing cold inside refrigerators.

OUR
GLOBALPRESENCE

engagedpeopleClose to 600 people
involved in Research andDevelopment, 120 of which
are in partner universities

About Us

With global operations and annual production capacity of
40 million units, we offer solutions that are differentiatedfor their innovation and energy efficiency. By the end of
2016, we had approximately 11,000 employees present
in seven countries.

environmental
performance

EMBRACO RUSSIA
Moscow
OfficeEMBRACO ITALY
Riva Presso Chieri
Compressor Factory

EMBRACO BRAZIL
Joinville
Headquarters, Foundry
and Compressor Factory
Itaiópolis
Component and Cooling
Systems Factory

EMBRACO CHINA
Beijing
Compressor Factory
QingdaoElectronics Factory

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Our principles
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MISSIONTo provide innovative solutions
for a better quality of life.

VISION

To be leader everywhereby 2020 and recognizedby our customers as
the preferred partner.

VALUES

Respect
Integrity
Diversity & Inclusion
Team work
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COMPOSITION OF PRESIDENT’S STAFF

GRI G4-34 | G4-38

We have a solid corporate governance structure that leads our businessand strategy with experience and pioneering spirit. Within this structure,
the highest body – and consequently the highest decision-making power– is the president’s staff, a structure composed of the president, six vicepresidents, and a director (see figure below), who are mainly responsible
to monitor the performance of the organization and executives bycreating directional goals that align with the company’s Mission and theorganization’s long-term goals.

President

CONTROLLER

In 2006, after a shareholder reorganization,
we merged with the appliance manufacturer
Multibrás, forming Whirlpool S.A. in Brazil.
It’s controlled by the North American Whirlpool
Corporation, the largest household appliancemanufacturer in the world. As Embraco provides
refrigeration solutions to the entire market,
it maintains an independent managementwith a strong shield policy that ensuresconfidentiality of information, protecting its
business as well as that of its customers.

Six Vice-Presidents
Sustainability VP

One Director

Sustainable growth and development areclear drivers of the company’s strategy andof its relationship with stakeholders. That’s
why we have a Sustainability Vice Presidency
on the president’s staff. The theme is seen as
a competitive differential and is part of thecompany’s decision-making process.

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ETHICSREPORTING CHANNELSGRI G4-56
To discuss, manage and review issues around ethical principles
that should guide the conduct of employees, suppliers and otherstakeholders, we have an Ethics Committee, made up ofrepresentatives from the Corporate Compliance, Audit, Security
and Labor Relations Departments.
To know what behaviors Embraco expects and to learn more about
matters such as anti-corruption and money laundering, as well as
antitrust actions, our employees also have the support of thefollowing documents:

For operational management of the Ethics issue, we have a Compliancearea, which is responsible to conduct training and communications
related to the topic, periodic document analysis, reporting channels,
among other continuous improvement measures.
Our suppliers also have a specific Code of Conduct, a documentthat directs our business chain so that they align with our principles
and values.
In addition, we follow the requirements of Sarbanes-Oxley (SOX), a
US law designed to reduce the risk of financial fraud, and we conductperiodic operational audits in our units.
In 2016, 100% of our leaders conducted content training linked directlyto ethics. They were:Codeof Ethics

GlobalEthics andCompliance
Policies

Organizational
Principles
and Values
Letter•••Annual compliance certification
Anti-corruption
Data privacy

We provide a reporting channel to employees, suppliers, third parties
and consumers, by telephone 0800-891-4247 and online, throughthe address: www.whirlpoolethicshotline.com.
We constantly carry out communication actions to inform employees
about the existence and functioning of the reporting channel, reinforcing
guaranteed confidentiality, anonymity and non-retaliation of thosesubmitting a report.

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Our Transformation Strategy

HOW IT WORKS

Over the years, we’ve become one of the world leaders in the hermetic
compressor industry and a reference in innovation throughout therefrigeration market. However, staying in the comfort zone has never beenpart of our day to day, and we know that in order to innovate and be aheadof competitors, it’s necessary to constantly dive into new challenges.

We established 12 work streams in which we diagnosed that there wasroom for improvement through the transformation of processes, systems,
products, logistics and other factors. From then on, executives andemployees from different areas formed working groups and began to holdweekly meetings to draw up and execute an action plan based – mainly –on changing corporate behavior.

Since 2013, we’ve been observing a less favorable sectoral scenario, mainly
due to the growth of our competitors, who have been increasingly bold. It
became clear that to maintain leadership, we had to completely change ourgame. It was then that we decided to make a great change in strategy andpursue a new Embraco: simpler, more innovative and one that has
the customer at the center of all discussions and decisions.

In order to have an idea of the dimension of the project’s intensity, between
2015 and 2016 we involved more than 400 professionals, who performed
more than three thousand actions globally, encompassing all our plants andoffices, and dozens of areas in Embraco.

With these values in mind, we initiated a cultural transformation that aimed
to change the way we make decisions, manage processes, and explore new
possibilities. For this change in mentality to succeed, we needed to directlyinterfere with how our people viewed day-to-day opportunities and thus
generate more determination and energy.
This is how Transformation came about, an ongoing transformation
project that reflects the desire and need for change to ensure thesustainability and growth of our business.
To achieve this transformation, the Program uses a bias towards action by
establishing work streams and intensive approaches to reach short-term
results – and to shape our culture in the long run.

Parallel to this process, another group of professionals began meeting
weekly to discuss our culture and find the best ways to foster a mindset of
constant transformation. Our goal is to shorten change cycles to provide themarket with an ever-faster response to their demands.

VISION OF THE FUTURE
In 2017, Transformation begins a new cycle and focuses on new points
and aspects of our operation. We believe that this continuous search for
improvement will build an organization that is increasingly more agile
and able to offer the best solutions, in the best response time, while atthe same time creating a work environment where all our talents are
motivated and engaged to always overcome challenges.

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BUSINESS INNOVATION

To become leader everywhere by 2020 and gain the position of preferred partner by our customers, we consistently invest in improving our products
and processes. Every day, we look to anticipate market trends, bringing the most modern technologies to customers and final-consumers to maketheir life better. To achieve our goals, in 2015 and 2016, we continued operating in our Core Business and Business Innovation segments.

Reinforcing our leadership culture, we invest in other business areasthat aim to anticipate market trends and diversify our business model.
In the Business Innovation operation, we identified five promisingmarkets: Energy Management, Refrigeration, Internet of Things,
Food Preservation and Recycling. The following stand out:

CORE BUSINESS

NAT.GENIUS

We produce compressors and condensing units for refrigeration that preserve the food of thousands of families and commercial establishments aroundthe world. To better serve our customers, we have three segments linked to the core business:

With the Nat.Genius operation we generate revenue throughreverse logistics and recycling compressors and electro-electronics(more information on page 33).
PARTNERSHIP WITH DORINIn 2016, we entered into a commercial agreement with Dorin, the Italiansemi-hermetic compressor manufacturer with a strong presence inEurope. Through this business, we began distributing Dorin products in
the Brazilian market and, in this way, we enriched our portfolio, which
now includes large-scale solutions such as refrigeration systems forsupermarkets, transportation, cold storage among other applications.

HOUSEHOLD REFRIGERATIONCOMMERCIAL REFRIGERATION

DISTRIBUTION AND RETAILSTART UPS

Hermetic compressors for coolinghousehold freezers, refrigeratorsand mini-fridges.

Dedicated to producing hermetic
compressors, condensing units and sealed
units for commercial establishments,
which can be used in equipment such as
wine coolers, supermarket and bakery
refrigerated exhibitors, medical andscientific equipment, among others.

We also have a segment focused on
distributing replacement parts todistributors, retailers, installers andcontractors – the professionals who
perform the equipment maintenance inhomes and commercial establishments(more information on page 32).

In 2016, we acquired the Brazilian startup UpPoints, which developed an
innovative system of image recognition and product sales performance
analysis at the point of sale as well as consumer behavior through acamera that captures images from the store shelf and sends data andinformation in real time for companies to base their strategic decisions.

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EVOLUTION OF EFFICIENCYWISEMOTION

Wisemotion was already designed with an efficiency similar to the
top-of-the-line Fullmotion compressors. And this technology will
evolve even more! Our R&D professionals are continuously working
to increase its efficiency in the coming years.

HOUSEHOLD | COMMERCIAL
Launched in 2014, Wisemotion is the first oil-free hermetic
compressor for household refrigerators – since it uses the refrigerant
itself to lubricate the parts. In addition, the solution uses approximately
50% less raw material than conventional compressors and saves 20%
in the refrigerant charge.
Because it’s smaller, Wisemotion saves internal space in the
refrigerator, providing up to an additional 20 liters in the equipment.
Its handling on the assembly line is easier and, by eliminating the useof lubricant oil, it offers more flexibility in transport and inventory, since
it allows storage in several positions, benefiting the logistic chain.
Moreover, Wisemotion is 20% more efficient than the best-selling highefficiency compressors in the world.
The technology also allows better food conservation by automaticallyregulating its power according to the refrigerator’s demand, and bringsa modern noise control solution, making the traditional refrigerators’“on-off” noise almost imperceptible to the human ear.
As we’ve confirmed through the Life Cycle Assessment tool (moreinformation on page 18), taking into account all these features,
Wisemotion generates 30% less negative environmental impacts
when compared, for example, to the efficient Fullmotion technology.

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NEW APPLICATION POSSIBILITIES
Wisemotion can be applied in Renewable Energy Source
systems, as it offers the following features:
LOWER STARTING POWER
Wisemotion’s oil-free linear mechanism doesn’t requirea large power surge to turn it on

EFFICIENCY LEVELGRI G4-EN7

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ON-OFF
single speed

1974

FULLMOTION
variable speed

1998

WISEMOTION
variable displacement

2014

BENEFITS
Smaller batteries
Smaller solar panels
Longer battery life

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FULLMOTION

VESF

ON-OFF

HOUSEHOLD | COMMERCIAL
Launched in 1998, Embraco Fullmotion Inverter is variable speed
compressor technology. Among its benefits are a decrease by up
to 40% in electric energy consumption, noise reduction and better
food preservation.

The most efficient and quietest among Fullmotion compressors.
Thanks to its reduced minimum speed of 950 rpm (rotation per
minute), VESF is able to reduce the refrigerators’ energy consumption
by more than 25% – when compared to conventional technology and achieve a noise level lower than a library.

HOUSEHOLD | COMMERCIAL
On-Off compressors have won the trust of our customers andend-users. Launched over 40 years ago, solutions with this technology
have continued to evolve to comply with energy regulations, serving alarge part of the market. Among the products with this technology, thefollowing stand out:

In a market increasingly focused on energy consumption and newenergy regulations, Fullmotion has been gaining a great deal of spaceand meeting consumers’ needs. Among the products that rely on thistechnology, the following stand out:

EME
Since the first generation of EME, we’ve made compressors of this line
increasingly more efficient, quieter and with less oil. The EME household
refrigeration compressor brings an energy efficiency gain of up to 5%
when compared to its predecessor.
EMC

MORE EFFICIENCY, LESS IMPACT
To evaluate the technology’s
environmental impact we made thefollowing calculation: if we add up all
Fullmotion compressors sold in thelast 10 years, we generate an energy
savings equivalent to nine billion KWh(when compared to using conventional
compressors). This amount of energy could
supply, for example, all of Croatia forsix months.

FULLMOTION X
Fullmotion X is a compressor that will significantly contribute towards
making Fullmotion Inverter technology mainstream in the global
refrigeration market since it has simple communication and Plug & Play,
which allows it to replace, for example, On-Off compressors without theneed to change anything in the refrigerator.

The EMC is one of the world’s most efficient single speed compressors.
With commercial application, the product uses R290, a naturalrefrigerant that doesn’t impact the ozone layer and doesn’t contributeto global warming significantly. In addition, this compressor consumes
up to 30% less energy than its predecessors.
The EMC was designed to equip beverage coolers, automatic vending
machines, under-counters and reach-ins. By being smaller and reaching
the same capacity of compressors that are generally larger, thecompressor makes more internal space available in refrigerators.

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PLUG N’ COOLCOMMERCIAL
Simple and compact, Plug n’ Cool is a commercial refrigeration sealed unit,
in other words, a complete cooling system, which aims to optimize resources(operational time and cost) in installation and maintenance. The technology
enables the use of the R290 natural refrigerant, which allows our customers tomeet global efficiency and refrigerant standards.

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For us, Sustainability goes beyond developing smart solutions and continuous improvement, being present also throughout our value chain– including employees and suppliers. In our Vision, relationships and processes need to be sustainable as well as products and manufacturing plants.
Additionally, we believe in our potential to transform realities in the communities that live around our plants and offices globally.
With these principles in mind, we develop sustainability through three workstreams:

SUSTAINABLE PRODUCTSENGAGED PEOPLESUSTAINABLE VALUE CHAIN

We seek to create products that,throughout their life cycle, have lower
negative impact on the environment andsociety. Within this context we invest in
developing innovative solutions, in whichenergy efficiency and reducing the use of
raw materials are paramount.

We develop and engage employees inour culture to promote their safety andprofessional growth, value our diversity
and contribute to the communities inwhich we are located through social
programs and volunteer work.

Our sustainability Vision extends
throughout our value chain, from the raw
material to the end of the useful life of our
products. In the supply chain, we work in
partnership with our suppliers so that they
incorporate the sustainability principles into
their daily practices. In post-consumption,
we have a circular economy program that
promotes recycling the product after being
discarded by the final consumer.

EXAME SUSTAINABILITY GUIDEIn 2016, we participated for theseventh time in the ranking ofBrazil’s most sustainable companies,
according to the Exame Sustainability
Guide. This time, we were recognized
for the Zero Landfill Project, focusedon solid waste management in theelectro-electronics sector (moreinformation on page 42).

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SUSTAINABILITY IN THE VALUE CHAIN

LIFE CYCLE OF OUR PRODUCTSIntermediate
products and inputs

Manufacturing andpackaging

End ofuseful life

According to the standards defined in the ISO 14000 series, LCA aims to quantify the potential environmental
impacts of a product or service from the extraction of raw materials, through manufacturing, its use and finaldestination, that is, covering its entire life cycle.
To carry out this study, we counted on the Inova Talents Program and partnerships with research laboratories
from the Federal University of Santa Catarina (UFSC), such as Ciclog – one of Brazil’s most renowned LCA researchgroups. We’re also part of the Brazilian Business Network for Life Cycle Assessment (LCA Network), an environmentof cooperation among companies interested in using LCA in Brazil.

LIFE CYCLEASSESSMENT

Extraction of
raw materials

In 2015, we began an in-depth study on the environmental aspects and impacts of our products, considering ascience-based approach: Life Cycle Assessment (LCA).

Applying LCA allows us to:• identify critical points in the compressor’s life cycle, driving our efforts to deliver increasingly sustainable products;• promote to our areas a holistic view of our products, so that they can recognize their contribution to the chain
as a whole, strengthening engagement and collaborative work among the areas;• stimulate the product development team’s creativity to innovate in an even more sustainable manner.

Use

This way, conducting LCA studies connects and further reinforces our sustainability work streams: engaged
people, sustainable value chain and sustainable products.
And this is just the beginning! The outcomes of this study have generated new opportunities for us to apply
life-cycle thinking, such as developing new environmental indicators, which will be integrated into the designof new products to ensure even more sustainable choices – based on scientific criteria – from the beginningof the process.

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COMMITMENTS
TO SUSTAINABILITYGRI G4-15

Network Brazil
WE SUPPORTAligned with these pillars, we have been signatoriesof the Global Compact since 2004 and we support
the 17 Sustainable Development Goals (SDG),
both initiatives proposed by the United Nations (UN),which are explained in more detail on the side.

Sustainable Energy for All: in 2012, we became the first company
based in Brazil to sign the commitment proposed by the UN that
promotes access to energy, increase global energy efficiency andincrease the share of renewable sources in the energy matrix.
Letter of Commitment for Sustainable Solid Waste
Management: created by the Ethos Institute, it reinforces thecommitment to sustainable development and the implementation of
the National Solid Waste Policy.
Brazilian GHG Protocol: in 2016, we mapped our operation’s
greenhouse gas emissions for the fifth consecutive year (moreinformation on page 40).
Gender and Race Pro Equity program: in 2016, we signed theCommitment Agreement of the Program’s 6th edition, organized by
the Brazilian government, which proposes new conceptions in people
management and organizational culture to achieve gender and race
equality in the labor market.

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GLOBAL COMPACT PRINCIPLESRESPECTand support internationally recognizedhuman rights in your area of influence

STIMULATE
all practices that eliminate any formof discrimination at the workplace

ENSURE
that your company does not participate
in any way in the violation of human rights

ASSUMEa responsible, preventive and proactive
posture towards environmental challenges

SUPPORT
freedom of association and recognize
to open collective bargaining

DEVELOPinitiatives and practices to promote anddivulge socioenvironmental responsibility

ELIMINATE
all forms of forced or compulsory labor

PROMOTEthe development and dissemination ofenvironmentally responsible technologies

ERRADICATE
all forms of child labor in yourproductive chain

FIGHT
corruption in all of its forms,
including extortion and bribery

SUSTAINABLE DEVELOPMENT GOALSINNOVATION FORSUSTAINABILITYSUSTAINABILITY REPORT 2015 & 2016
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Innovation Compass

INNOVATION FORSUSTAINABILITY

Innovation is at the center of our strategy and encompasses not only
the development of new compressors, but also new business models,
services and processes.
We are a global benchmark in the refrigeration industry and wechallenge ourselves daily to be at the forefront of the market indeveloping new technologies.
Every year, we invest 3% to 4% of our total revenue in the
Research & Development (R&D) area, which has more than
600 professionals – 120 in partnerships with universities – and47 laboratories, located on four continents. In return, 59% of therevenue of the last five years comes from products launched in thissame period.
Currently, we have more than 1,700 patents registered globally.

EMBRACO INNOVATION AWARD
Since 2011, we’ve held the Embraco Innovation
Award, an award that encourages Chinese students
and researchers to develop high energy efficiency
cooling solutions. In 2016, the award received
234 projects from 84 universities and 14 Chinesecompanies – a number 300% higher thanthe previous edition.

Partnerships for Innovation
In addition to investing in our R&D area, we seek innovation fromstrategic relationships with universities and customers.
We contribute significantly to research in Refrigeration – we’ve alreadyproduced more than 100 scientific articles on the subject – and we workin partnership with universities that are world references in engineering.
They include:
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Federal University of Santa Catarina (Brazil)
University of the State of Santa Catarina (Brazil)
SENAI Institutes of Innovation (Brazil)
SENAI Institutes of Technology (Brazil)
Regional University of Blumenau (Brazil)
Unisociesc (Brazil)
Instituto Euvaldo Lodi (Brazil)
Politehnica University Timisoara (Romania)
Fraunhofer Institute (Germany)
RWTH Aachen University (Germany)
University of Illinois (USA)
University of Glasgow (United Kingdom)
University of Shanghai (China)

Transformation and R&D
The Transformation teamhas been working alongside
the R&D area to shorten thedevelopment cycle.
Since the action was
initiated, the time between
the creation and the
production of a new productwent from 35 to 16 months.

Press photo Hub/UFSC

credits

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Innovation Compass

RECOGNIZED INNOVATIONIn the last two years, we received several awards thatrecognized our work in R&D:
2015
• Finep Innovation Award, the most important recognitionof innovation in Brazil, in the Large Company category;• 3rd place in the Stemmer Catarinense Innovation Award, in the
Innovation Protagonist category, with the Wisemotion case;• 2nd place in the Brazil-Germany Innovation Award, in the
Innovation Challenge category, with the Wisemotion case;• 10th place in Best Innovator award, promoted by AT Kearney;• Anpei Technology Innovation Conference, in the Exhibitionof Innovative cases category;• AHR Innovation Award, in the Refrigeration category;• Innovation Champions Award, promoted by Amanhã
Magazine; and• 3rd place in the Innovation Ranking Brazil 2015, promoted
by Valor Econômico newspaper and Strategy& Consulting,in the capital goods sector.
•
2016• We were the national champion of Innovation in Slovakia
with the NEU and EME compressor cases, in an award
offered by European Business Award.
• Brazil 2016 Innovation Ranking, promoted by Valor
Econômico newspaper and Strategy& Consulting, in which
we were elected the third most innovative company in thecapital goods sector and 9th in the overall ranking (jumpof 15 positions compared to 2015).

SECTOR DEVELOPMENTGRI G4-16•
We actively participate in formulating public policies that contribute todeveloping our industry, focused on issues related to innovation, energy
efficiency, professional development and regulation of the refrigeration
sector. We also partner with research centers and universities in the
countries where we are present in order to develop new technologies
applied to our products and processes. Among the main organizations
that count on our cooperation include:
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American Chamber of Commerce in Slovakia;
Brazilian Electrical and Electronic Industry Association (Abinee);
Brazilian Association of Advertisers (ABA);
Brazilian Foundry Association (Abifa);
Brazilian Association of Industrial Internet (ABII);
Brazilian Association of Technical Standards (ABNT);
Brazilian Human Resources Association (ABRH);
Brazilian Refrigeration, Air Conditioning, Ventilationand Heating Association (Abrava);
Itaiópolis Commercial and Industrial Association (ACII);
Association of the Equipment and ElectrotechnicalIndustry - Slovakia;
Brazilian Foreign Trade Association (AEB);

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Occupational Health and Safety Professionals Associationof Joinville and Region (APSSOJ);
Joinville Business Association (ACIJ);
Latin American Electrical and Electronic
Industrial Association (Alainee);
National Association of Manufacturers ofElectro-electronic Products (Eletros);National Research, Development and Engineering
Association of Innovative Companies (Anpei)
Human Resource Development Association – Slovakia;
Business Leaders Forum – Slovakia;
American Chamber of Commerce - Slovakia;
Electricity Utility Company of Santa Catarina (Celesc);
Center of Industries of the State of Santa Catarina (Ciesc);
Joinville Architect and Engineer Center (Ceaj);Joinville – Spisská Nová Vês Sister City Committee;
National Confederation of Industry / Brazilian Business Coalition;
National Council for Scientific and Technological
Development (CNPq);
Federation of Industries of Santa Catarina (Fiesc);
Federation of Industries of São Paulo (Fiesp); andInternational Electrotechnical Commission (IEC).

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Innovation Compass
BRAZILIAN ASSOCIATIONOF INDUSTRIAL INTERNET

When we develop new technologies, we seek to meet the needs of our customers and their final consumers. For this, when we think
about innovating, we think about:

In 2016, we became co-founders of the Brazilian
Association of Industrial Internet (ABII), an organization
created to promote growth and strengthen industrial
internet in Brazil.
Through the ABII, we’ll have the opportunity to discussand share challenges, learnings, and initiatives toinspire the use of embedded technology in products.
It’s important to remember that the region of Joinville(Brazil), where we have our headquarters is a hub fortechnology development, with many skilled talents.

ENERGY EFFICIENCYGRI G4 EN7
Aiming to reduce energy consumption and bring more comfort andwell-being to the consumer, we work to achieve high levels of energy
efficiency in our products, which in addition to reducing the consumer’s
energy costs, reduces their environmental impact.

The concept of Industrial Internet is an adaptation of
the Internet of Things (IoT) and is closely connected
to Industry 4.0, a movement considered the fourthindustrial revolution, which aims to ensure thecompetitiveness of manufacturing in an increasingly
dynamic global market.
By co-founding ABII, we aspire to bring together IT
companies, industries and educational institutions
to create integrated and innovative technologicalsolutions for society’s demands.

NATURAL REFRIGERANTS
We are pioneers in using natural refrigerants that, when comparedto other fluids, have negligible contribution to global warming andare harmless to the ozone layer. In addition to these benefits, naturalrefrigerants also contribute significantly to reduce energy consumption.
We adopted propane (R290) as a refrigerant and, in addition to theenvironmental benefits, we helped our customers manage the risk ofany possible regulations that may arise in the market.

MINIATURIZATIONCOST REDUCTION

We strive to create increasingly smaller and lighter products, demanding
fewer raw materials. Because of this goal, in 2015 and 2016 we saved
close to 7,000 tons of material in our global production.

An essential factor for an increasingly competitive market, we’ve sought
to reduce our production cost by investing in improving operational andadministrative processes.

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NATURAL REFRIGERANTSHIGHLIGHT IN
NATURAL REFRIGERANTS

R290 RESULTS
We used R290 (instead of R404A) in three applications
and had the following results by unit:
Ice cream freezer: R290 generated a 16% reduction in energy
expenditure, which means a real gain of US$ 26 per year for the
consumer and 1,954 kg less CO2 in the atmosphere in 10 years.
Point-of-sale glass door freezer: R290 provided a 32% energy
reduction, a real gain of US$ 38 per year for the retailer, and2,277 kg of CO2 emission was avoided over 10 years.
Vertical freezer: 43% reduction in electricity consumption,
representing savings of US$ 226 per year, and 12,764 kg of CO2
less in the atmosphere in 10 years.

Marek Zgliczynski, our Commercial
Refrigeration and Product Engineering
Manager in Europe, was recognized by thescientific journal Accelerate America as oneof the 25 most important people in North
America to advance the adoption of naturalrefrigerants. The recognition was due tothe work developed by Marek, who has
promoted globally the use of this classof refrigerants.

credits

RESPONSIBILITY
AND EFFICIENCYIN THEVALUE
CHAINSUSTAINABILITY REPORT 2015 & 2016
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RESPONSIBILITY AND EFFICIENCYIN THE VALUE CHAIN

We’re committed to sustainable development and it’s part of our business strategy to analyze the entire value chain of our products in search ofopportunities to increase our efficiency and reduce our direct and indirect impacts. For this reason, in 2015 we introduced a Life Cycle Assessment (LCA)
study, which maps the environmental impacts generated by our products throughout their value chain (more information on page 18).
Following this commitment, in addition to producing increasingly efficient products and with less raw material, we seek to act in other links in the chain tocontribute to a process that offers less and less social and environmental impacts. In the next few lines we’ll discuss a little about what we’ve accomplishedin the last two years to have an increasingly sustainable value chain.

Suppliers

GRI G4-12 | G4-HR11
In 2016, we worked with 390 direct materials suppliers, present on fourcontinents. In order to leverage our key suppliers, since 2012 we’vedeveloped the Supplier Excellence Program that offers workshops andmultidisciplinary work to improve the performance of our chain in aspects
related to service, quality, costs and sustainability, thus generating morecompetitive advantage.
In the last two years, we’ve consolidated the Supplier Excellence Programin order to transform it into a standard Embraco process. To do this, wereformulated our Supplier Excellence guidelines to align them with theWorld Class Manufacturing methodology (more information about WCM
on page 29) and to track its expansion to the supplier’s public, thereby
creating a World Class Supply Chain.

GEOGRAPHICAL DISTRIBUTION
OF SUPPLIERS IN 2016

10%
35%
21%

34%

Asia

EuropeSouth America

North America

Transformation and Procurement
The Transformation team has also
worked with the Procurement area
to develop a Global Certification project,designed to integrate and simplify
the approval and development processof new suppliers.

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STIMULATING BEST PRACTICESGRI G4-EN32 | G4-HR10 | G4-LA14

SUPPLIER DAY

Our work with suppliers also involves stimulating best sustainability
practices, since we require 100% adherence to our Code of Conduct for
new suppliers. Explained in this document are, besides anti-corruption
issues, our non-tolerance of child labor, slave-like labor, discrimination,
deforestation or other environmental infractions, non-compliance withlabor laws in the country, and other issues sensitive to sustainability.

Once a year, we bring together the main companies in our supply chain
to hold Supplier Day, a global relationship event that aims to engage
and recognize this strategic public in our values and our Vision to beleader everywhere by 2020.

BIENNIAL SELF-ASSESSMENTGRI G4-EN33 | G4-HR11 | G4-LA15

Between 2015 and 2016, more than 160 suppliers participated in
the events held in China, Brazil, Slovakia and Mexico, and were able
to discuss topics highly relevant to our business, such as efficiency
using natural resources, utilizing natural refrigerants and developing
increasingly more sustainable products.

To map actual and potential risks in the value chain, we use a SelfAssessment process, which assesses the adherence of our suppliers toour ethical principles (which includes issues related to environmental
impacts, respect for human rights and labor issues) through aquestionnaire that contains questions about their profile, labor relations,environmental impacts and their supply chain.

The suppliers’ public is essential to achieve operational excellence in
WCM, so we take advantage of the event’s to present success stories inwhich we recognize supplier companies that have aligned themselveswith our strategy and achieved extraordinary results by implementing
WCM principles.

In 2013, we mapped the entire supplier base and in 2015/2016 we
carried a work to improve these companies with action plans and visits– whenever appropriate.

Additionally, as a form of recognition, during Supplier Day we award thebest companies of the year, following the evaluation criteria: quality,
logistics, cooperation and sustainability.

In the last two years, no significant negative (actual or potential) impacts
regarding labor practices, human rights and the environment were foundin our supply chain.

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Revolutionizing our way of producing
Since 2013, we’ve adopted in our operations the World Class
Manufacturing (WCM) methodology, a management program aimed
at pursuing globally operational excellence through continuous
improvement and simplification of the production process.
Three years after its implementation began, WCM has proven to be an
important lever in our sustainability strategy, since the methodology
requires a holistic view of all employees and encourages integration
among our different areas, which work together to overcome challenges,
improve their processes, promote safe behavior and achieve higher
operational standards and results.
WCM acts directly on ten technical pillars, through seven management
steps (see figure below), and has direct impacts on productivity, quality,
safety and environment, through the continuous pursuit for ZERO:zero accident, zero defect, zero scrap, zero loss and zero waste.

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7 STEPSSTEP 7

STEP 6

STEP 5

STEP 3

STEP 2

Transformation and WCM

STEP 1

10 PILLARS

WCM METHODOLOGY
1. SAFETY
2. COST DEPLOYMENT
3. FOCUSED IMPROVEMENT
4. AUTONOMOUS ACTIVITIES
5. PROFESSIONAL MAINTENANCE
6. QUALITY CONTROL
7. LOGISTICS
8. EARLY EQUIPMENT MANAGEMENT
9. PEOPLE DEVELOPMENT
10. ENVIRONMENT & ENERGY

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29

By the end of 2016, all of our plants had
already implemented WCM – at different
maturation levels. The compressor plants
in Italy, Brazil and Slovakia were thefirst to work with the methodology, andalready show significant results. You canlearn more about our environmental andsafety performance, respectively on pages 37 and 52.
By applying the methodology, in the last two years, we simultaneously
improved our productivity and quality management. With WCM’s
introduction, in addition to reducing the incidence of defects, we began
to perceive zero defect through a work that even involved engagementand development of our suppliers so that they develop themselves andcollaborate with our objectives.

Transformation and WCM havecreated great synergy. By working to bringmore simplicity and agility to our culture
and thus facilitate all change processes,
Transformation has accelerated andenhanced WCM implementation in the plants.

PARTNERSHIP WITH JURAN INSTITUTE
In early 2016 in the constant pursuit to improve ourquality, we sought Juran Institute. Created in 1979,
the institute is named after its founder, Dr. Joseph
Juran (1904-2008), one of the world’s leadingreferences when it comes to quality management
and whose ideas have a strong influence on our
production process.
Between March and October, the Juran Instituteconducted an assessment in all of our compressor
and electronics factories, covering the entire
manufacturing process – including WCM. At the endof this period, we received the result of this study
that pointed out our strengths (where we are abenchmark in addressing quality – according to thestudy) and also brought improvement suggestions
so that we can evolve and better serve ourcustomers with lower production costs.

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CERTIFICATIONS
We’re prepared to serve the most diverse markets on a global scope and we have the following certifications:
ISO 9001
It aims to improve a company’s management and quality
level by standardizing systems and processes.

QUALITY CONTROL CIRCLE (QCC)
Since 1997, our operation’s quality in Brazil
has been supported by Quality Control Circles(QCC), a voluntary program through which hourly
employees organize themselves into groups to
identify possible faults and create simple, creativeand effective solutions.
Created to stimulate and value the creative
potential of professionals committed to excellence,the program assists in people’s personal andprofessional development and provides work
environment improvements.
In 2016, 42% of our hourly employees (direct andindirect) participated in QCCs. During the same
period, 413 Circles were promoted, with an averageof 9.3 suggestions per circle and a total of 9,285
implemented projects.

Compressors
Foundry
Components

Compressors
Electronics

Compressors

Compressors

Compressors
Foundry
Components

Compressors
Electronics

Compressors

Compressors

Compressors
Foundry
Components

Compressors
Electronics

Compressors

Compressors

Compressors
Foundry
Components

Compressors
Electronics

Compressors

Compressors

OHSAS 18001
Focused on people, it guides best practices in occupational
health and safety management.
IECQ QC 080.000!

It establishes procedures for management of substances
hazardous to the environment.
ISO 14001
It guides implementation of environmental management systems
aiming at compliance with any internal and external assessments
and impact reductions.
ISO TS 16.949
Focused on the automotive industry, it aligns international quality systemstandards, and specifies the requirements for the design and development,
production, installation and maintenance of automotive products1.

1. Our foundry plant is the only one that serves the automotive sector, therefore only this factory has this certification.

Foundry

Compressors

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Working in partnership withour customers
We are a company oriented to our customers and we work to always
offer the best experience before, during and after acquiring our products.
Through this strategy, we aspire to achieve our Vision and become
leader everywhere by 2020, and recognized by this public as thepreferred partner.
Our relationship with our customers is characterized by a long-term
partnership, because in this way we are able to follow their different
moments, understand what the main challenges of their market are andoffer the best solutions in a shorter response time.
In addition, another fundamental part of this partnership is theconstant co-development actions, through which we combine thequalities and competences of the companies (Embraco + customer),promote the brands and generate business opportunities with newcompetitive advantages.
Strategically, we also put our expertise in different segments at thedisposal of our key commercial partners so that they develop and growtheir business. In practice, this means that in addition to refrigeration,
our relationship with customers involves other topics relevant to theirbusiness – such as services, design, branding, internationalization,
among others. When our customers grow and gain market share, wegrow with them.

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SATISFACTION SURVEY
Listening to customers is essential to offer them the best experience. To
know the level of satisfaction of this public in relation to our brand and themain factors that influence their purchasing decision, since 2012, we’ve
conducted an annual survey, whose results have helped us to increasingly
better meet their demands.
In 2016, our Customer Satisfaction Survey was conducted in 10
languages and 242 people participated, in 53 countries, by answering
approximately 25 questions about the items that guide their purchasing
decision, the main attributes they’re looking for in a compressor among
other topics that involve their relationship with Embraco.
In the same year, in synchrony with our customer centric strategy, webegan a new global survey focused on the customer’s perception of ourquality. Conducted monthly, we monitored 146 companies and obtained
an average of over 92% satisfaction.

CO-BRANDING
We have a brand that has a great amount ofcredibility, and one that is a reference in innovation,
quality, efficiency and sustainability for the market.
During the last two years, we’ve started carryingout some co-branding initiatives, inserting ourbrand on the refrigerators that use our compressors
and relaying the benefits of our technology to endusers, consequently generating more added value
to our customers’ products.

In 2016, we carried out co-branding actions on products from customers
in Asia, Europe and Latin America using Fullmotion technology, as it
is a solution that offers attributes that are highly relevant to the enduser, such as energy consumption reduction, fast cooling, better foodpreservation and more comfort due to its low noise level.

Seal applied onrefrigerators in Argentina,
promoting the use of
Fullmotion technology
with a 10-year warranty.
More information atwww.embraco.com/
fullmotion

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Relationship with Contractors
Contractors are a very important public for us. They’re responsible forhousehold and commercial refrigerator maintenance, and theirpurchase recommendation directly impacts our Distribution and Retailarea. Therefore, we seek to keep these professionals informed about
our product portfolio, as well as invest in their training. In 2016, we
promoted 45 lectures in 14 Latin American countries and trained morethan 5,000 contractors.
Additionally, for more than 30 years we’ve produced a magazine
dedicated to retailers and technical assistants in the refrigeration
segment. Refrigeration Club is one of the sector’s most important
publications and in 2016 it had a quarterly circulation of 14,000 copies(in Portuguese and Spanish) distributed free-of-charge in 15 Latin
American countries.

NEW REFRIGERATION CLUB WEBSITEIn 2016, Refrigeration Club got a new website and a number of newfeatures. Among them are: an interactive forum – space dedicated forcontractors to exchange experiences –, exclusive materials available fordownload, training and lecture schedule and even a Club card (which canbe printed).
With more than 50 thousand visits/month, the website is no longer justan extension of the Refrigeration Club magazine but has become areference in industry news and practices. To check out the result,simply access www.refrigerationclub.com.

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TOOLBOX APPLICATION

In 2016, we launched the Toolbox application,
which offers a set of virtual tools and assists
the contractor’s day to day throughseven functionalities:• Nearest distributor search tool;• Embraco product catalog;• Cross-reference product guide;• Unit converter;• Refrigerant ruler;• Tool to identify causes of the main coolingsystem problems; and• All Refrigeration Club content.
Toolbox is available in all countries throughout
the world in more than 10 languages.

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Innovation in Circular Economy
Inspired by nature, where the cycles are closed and the elements arereused at the end of their useful life, Nat.Genius seeks to generate
positive impacts for the environment and value both for Embraco aswell as for stakeholders. Through reverse logistics work, the program
recycles several discarded electro-electronic products at the end of
their useful life.
With Nat.Genius, waste and electro-electronic equipment parts at theend of their useful life go through upcycling processes that add value
to the materials, turning them into high quality raw materials for new
products or partners. Through the work and creativity of our team,a refrigerator’s metallic parts can become raw material for our own
customers; or plastic pieces become inputs to produce parts usedin construction.
Currently we have strategic partners to ensure to our customers
recycling of 100% of the materials present in white goods appliancesand commercial refrigerators. Additionally, we engage our Research& Development professionals to design products that focus on
disassembly and reuse, and challenge our suppliers to develop exclusive
recycling technologies, enhancing their products and services.

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EXPANDING OPERATIONSIn the last two years, Nat.Genius has evolved significantly, from being
a project to become a global business area – acting beyond Brazil as aconsulting service provider also in Europe and North America. In the same
period, in addition to compressors and the white line, we began recycling
green, brown, and blue line products (description of each line below) and tooffer waste management service. Among our customers are some of thelargest Brazilian manufacturers of white goods and large companies in thesegments of ice cream and soft drinks.
••••

White line – refrigerators, stoves, washing machines, among others;
Green line – desktop computers, monitors, mobiles, tablets;
Brown line – televisions and audio devices - such as micro-systems;
Blue line – hair dryers, mixers, blenders, among others.

With these actions, Nat.Genius expanded its activities in order tobecome continuously more prepared to meet market demands,
anticipating the needs created from the National Solid Waste Policy,
a measure from the Brazilian government that foresees shared
responsibility for the product lifecycle and the sectoral agreement
for reverse logistics.

ELLEN MACARTHUR FOUNDATION
Nat.Genius is one of the operations
considered a reference by the Ellen Macarthur
Foundation in Brazil. The Foundation was
created in 2010 with the goal of accelerating
the transition to a circular economy aroundthe globe, influencing the agenda of decision
makers in the world of business,government and academia.

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CIRCULAR ECONOMY OF NAT.GENIUS

PRODUCT
FACTORY

The product reaches the
final consumer’s hands.

In the factory, inputs aretransformed into the final product.

NATUREDISCARDAt the end of their useful life,
products are discarded, become
waste and are subsequently collected
and transported.

Inputs are taken fromthe environment.

PROCESSING
Recyclable materials are processed and treated
to return to the factory as an input.

ENGINEERINGNat.Genius has a commercial team, which establishes
partnerships with customers to understand their needs andoffer appropriate materials (input). At the end of the process,a final disposal certificate (FDC) is issued, which ensuresthat the product has been properly disposed.

DISASSEMBLY
Still in the Nat.Genius plant,
waste is disassembled so thateach part is properly disposed.

Through a logistical plan, the waste
arrives at Nat.Genius’ plants, where
it’s sorted, based on transformationengineering that defines the reusepotential of each product.

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NAT.GENIUS RESULTSRECYCLINGGRI G4-EN28
Between 2015 and 2016, through Nat.Genius we recycled:•

5,656 tons of steel – enough to produce more thanfour thousand cars1;•

3,046 tons of iron – 42% of what was used to build
the Eiffel Tower2;•

144 tons of aluminum – enough to produce morethan 10.5 million cans3;•

615 tons of copper;•

57 thousand liters of oil; and•1,104 tons of plastic.

1. Source: http://motordream.uol.com.br/noticias/ver/2011/11/28/
voce-sabe-do-que-e-feito-um-carro
2. Source: https://blogdopetcivil.com/2014/02/28/a-construcao-da-torre-eiffel/
3. Source: http://www.re9recicle.com.br/2011/curiosidades/

Materials recycled by Nat.Genius (in t)
Materials
2015
2016
Total
Steel
2,361
3,295
5,656
Iron
1,452
1,594
3,046
Aluminum
72
72
144
Copper
305
310
615
Oil
30
27
57
Plastic
480
624
1,104
Total
4,700
5,922
10,622

Recycled materials (in t)
5,922
4,700

1,033

887

1,594

1,452
3,295

2,361
2015

Steel

2016

Iron

OthersZERO WASTE WEEKIn 2015 and 2016, Nat.Genius also collaborated toraise awareness in the community who lives close
to its operation regarding correct disposalof electro-electronic waste.
Through Zero Waste Week, residents from Joinville(Brazil) were the target of a socio-environmental
education campaign, and were able to properly
dispose of electro-electronics, household
appliances and portable appliances, taking them to
Nat.Genius’ plants or schedule collection services.
The initiative is organized by Zero Waste Brazil
Institute, a civil, non-profit organization whichis part of the Zero Waste International Alliance,
an international organization that works to
defend the environment.

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ENVIRONMENTAL

36

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in the value chain

PERFORMANCE

environmental
performanceengagedpeopleadjacent
information

GRI
index

credits

SUSTAINABILITY REPORT 2015 & 2016
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message fromleadershipprofileEnergy consumption

ENVIRONMENTALPERFORMANCEIn addition to focusing on miniaturization, energy efficiency, reuse
and recycling, we seek to be even more efficient in our production
process and, consequently, generate increasingly less impact on
the environment.
Since 2013, our biggest ally to continually evolve in environmental
efficiency has been WCM (learn more on page 29). Implemented in all ofour plants – still at different maturity levels – World Class Manufacturing
has directly collaborated to make our production increasingly “lean” andtherefore improve our environmental performance.
Also part of our sustainability strategy is the constant effort to reduce
our greenhouse gas emissions (GHG), not only to demonstrate ourcommitment to combat climate change, but also to mitigate risks
related to environmental legislation to which we and our customers
are subjected to.

Energy consumption
GRI G4-EN3 | G4-EN5 | G4-EN6

In absolute numbers, in 2016 we consumed globally 1,638,865 GJ ofenergy, a number practically stable when compared to the previous year.
When we look at the relative global number, we observed that the ratioof GJ per compressor produced in electric energy was 0.032604 in 2015
and 0.032481 in 2016, which means that we used, on average, 0.4%
less electric energy per unit produced.

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Waste

963,825

1,632,940

1,035,505

1,638,865

1,035,004

541,008

597,435

603,861

2014

2015

2016

Direct Energy

Indirect Energy

credits

Water consumption

Evolution of Embraco’s Energy Consumption (GJ)

1,504,833

GRI
index

DirectEnergyIndirect
EnergyTotal

Direct and Indirect Energy Consumption (GJ)
2014
2015
2016
Var. 2015
vs. 2016
541,008
597,435
603,861
1.08%
963,825

1,035,505

1,035,004-0.05%

1,504,833

1,632,940

1,638,865

0.36%

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Water consumption

Energy consumption (cont.)

Fuel
Direct Energy
Natural gas
Methanol
Propane
GLP
Diesel oil
Gasoline
Ethanol
Kerosene
TOTAL Direct Energy
Indirect Energy
Electric Energy
TOTAL Global
TOTAL Global

Evolution of our Energy Consumption by Source (GJ)
2014
2015

2016

492,082862
4,545
13,380
2,760
166
32
181
541,008

574,091
409
4,066
14,171
3,333
1,123
137
105
597,435

584,553424
4,204
10,238
3,107
1,139
123
71
603,861

963,825

1,035,505

1,035,004

1,504,833

1,632,940

1,638,865

Energy intensity rate
(GJ/ compressor)
Direct Energy
Natural gas
Methanol
Propane
GLP
Diesel oil
Gasoline
Ethanol
Kerosene
Average Direct Energy
Indirect Energy
Electric Energy
Average Global
Energy used percompressor produced

Energy intensity (GJ/compressor)
TOTAL
2014
2015

2016

0.015764
0.000028
0.000146
0.000429
0.000088
0.000005
0.000001
0.000006
0.017332

0.018076
0.000013
0.0001280.000446
0.0001050.000035
0.000004
0.000003
0.018811

0.018345
0.000013
0.000132
0.000321
0.000098
0.000036
0.000004
0.000002
0.018951

0.030877

0.032604

0.032481

0.048209

0.051414

0.051432

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Emissions

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performanceengagedpeopleWaste

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index
Water consumption

INITIATIVES TO REDUCE
ENERGY CONSUMPTIONGRI G4-EN6
Implementation of WCM, especially the Energy Pillar, encouraged
adoption of several energy efficiency initiatives in our plants. In the
period covered by the report, we had several actions that aimed at
reducing consumption. The main ones are listed below.
In Brazil, with Energy Pillar actions (WCM), we reduced the compressor
unit’s Electric Energy consumption by 11%. Improvements were
implemented that involved: high efficiency electric motors,
compressors for high efficiency compressed air, inverters, automatic
machine shutdowns in non-productive periods, natural lighting, LED
lighting, HVAC, along with awareness and educational campaigns forenergy consumption.
In Slovakia, in 2015 we installed a refrigeration system for R&D
laboratories, which generated a savings of 324 GJ per year.
In 2016, we installed a technology that generated a 20% reduction inelectric energy consumption for cooling the assembly line. In the same
period, we replaced neon lamps with LED, which resulted in savings of
100.2 GJ per year.

At the Compressor Plant in China, we began to periodically inspectand maintain the plant’s piping, and to completely shut off power andcompressed air from the inlet of all assembly line machines when notproducing. Additionally, in 2016 we replaced incandescent lights forLEDs in the plant and office, which also led to a reduction
in consumption.
In Mexico, we made improvements in the Air Treatment Unit, which
has a contribution of 670,000 kWh, and in Italy, we made thecompressed air room and electric motors more efficient, in addition
to replacing the boilers.

100% RENEWABLE ENERGYIN SLOVAKIA
We received a certificate from Slovenské
Elektrárne, Slovakia’s leading power company,
attesting that all the energy we consume
in the country is from renewable sources.
The label also recognizes our contribution
to sustainable development and towards
preventing greenhouse gas (GHG) emissions.

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Emissions

GHG Emissions (in tCO2e)

GRI
index

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Water consumption

DIRECT EMISSIONS IN 2016

GRI G4-EN15 | G4-EN16 | G4-EN19
In 2016, we emitted globally 95,940.25 tons of CO2e, which means
a 5.8% reduction of our greenhouse gas emissions (GHG) compared
to 2015, which represents approximately 7 thousand tons of CO2e
– equivalent to the emission generated by more than 200 trips of a
Boeing 737 in a route of approximately 1 hour or 360 km.
Analyzing our emissions, it’s possible to observe that 40.4% ofthem were direct (scope 1) and 59.6% of them indirect (scope 2),that is, referring to the purchase of electric energy. It was precisely
in energy consumption that we were more successful, achieving a
10.7% reduction thanks to introducing WCM, which allowed us to be
increasingly more efficient in this theme.

100,936

101,828

35,87537,80965,06264,0192014

95,94038,7992%

57,141

2015

79%

2016

Indirect

Direct

GHG EMISSIONS IN 2016

Stationary

MobileFugitive

Stationary: arising from burning fuel in stationary sources(example: furnaces and boilers) to generate electricity, heat or steam;Mobile: arising from burning fuels in mobile sources owned or hired by
the company (for example, forklift trucks to transport materials or waste,cars to transport employees, among others); and

40.4%
59.6%

GHG LABEL
In 2016, we received, for the 5th consecutive
time, the silver label from the Brazilian
GHG Protocol for publishing all GHG directemissions of all our units. The GHG Protocol is
an international organization that encourages
companies to calculate and publish theiremission inventories.

19%

Indirect

DirectFugitive: arising from the intentional or unintentional release whenusing refrigeration equipment (example: leaks of refrigerant gas usedin laboratory tests, air conditioners, etc.).
More information on page 55.

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Waste

credits

Water consumption

Waste

GRI G4-EN23
In 2016, we generated 116,200 tons of waste globally, 6.3% more thanin 2015. Of this total, 97.1% was considered as non-hazardous waste,
86.3% was recycled and 13.4% was sent to landfills.
When we analyzed the total number of compressors produced globally,
we observed that in 2016, for each compressor produced, we sent 490 gof waste to landfills, practically stable compared to 2015, but 10.2% lessthan in 2014.

WASTE GENERATION (t)Non-Hazardous Waste
Hazardous
Waste
TOTAL

108,008

106,069

112,778

Var. 2015
vs. 2016
6.3%

3,405

3,289

3,421

4.0%

111,413

109,357

116,200

6.3%

0.1% 0.2%

116,200

13.4%

3,421

111,413

4.5%

109,357
3,405
3,289
108,0082014

WASTE GENERATION (t)
2014
2015
2016

DESTINATION OF HAZARDOUS/ NON-HAZARDOUS WASTE IN 2016

Non-Hazardous
waste

112,77881.8%

106,069

2015

2016

Hazardous
waste

Economic recycling

Environmental Recycling

Landfill

Construction/
remedial waste

Incineration

Our global target is to zero out sending compressor plant waste tolandfills by 2018 and the Foundry by 2022. Considering industrial
waste, we reached this goal in 2015 at Brazil’s compressor plantand in 2016 at China’s electro-electronics plant.

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Energy consumption

The 5Rs of Waste

RefuseReduceReuse
RecycleRecover

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Water consumption

ZERO WASTE sent to landfills from Brazil’s
compressor plant
In 2015, the Compressor factory in Joinville (Brazil) was the first unit toeliminate sending industrial waste (such as various non-recyclable andcontaminated materials) to landfills. With this result, we avoid sending
more than one thousand tons – which corresponds to the load of 70
dump trucks – to landfills.
To achieve ZERO discard in landfills, we’ve adopted the five “Rs” of WCM- to Refuse, Reduce, Reuse, Recycle and Recover products that causesignificant environmental impacts to the environment. This led us tore-evaluate each material consumed in our plant and seek alternative
disposal of its waste. One of the solutions found was to send waste forcomposting and cement co-processing, a process in which the residue
is used as fuel for cement kilns, substituting virgin raw materials such ascoal and natural gas. Another example was the destination of the ironfines for briquetting, so that this residue is used as an industrial input.

With implementation of these measures, and driven by WCM’s
Environmental Pillar, in two years we were able to reduce the averageamount of waste (including industrial and others) sent to landfills by
83.5%, as shown in the following chart:
Average amount of waste sent to landfills
per compressor - BR Plant (g)

-50.5

-85.3

%

%

78
38

-70.2

%
11

2014

2015

2016

ZERO industrial
waste to landfills

ZERO industrial
waste to landfills

In addition, we began prioritizing local suppliers, which besides
reducing environmental impacts generated by the logisticalprocess (with this measure we avoided 5t of CO2e), contributes
to developing the local economy.
More information on page 55.

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Water consumption

WATER REUSE

In 2016, we consumed 654,669 m3 of water, a number practicallystable when compared to 2015. Of this total, 66% came from watersupply networks and 34% was taken from wells. In analyzing the water
consumption index per compressor produced, we observed that in thelast three years we used 0.02 m3 (or approximately 20 liters) of water per
compressor, less than 1/4 of what’s needed to produce 500g of plastic1
and approximately 0.02% of what’s consumed to produce a smartphone2.
1. To produce 500 g of plastic, 91 liters of water are needed (SOURCE: http://revistaepoca.globo.
com/Sociedade/noticia/2013/03/quantos-litros-de-agua-sao-usados-na-fabricacao-de-cadaproduto.html)
2. To produce one smartphone, 12,760 liters of water are needed (SOURCE: http://www.
akatu.org.br/Temas/Consumo-Consciente/Posts/Quanta-agua-e-gasta-na-producao-do-seusmartphone)

Water consumption (m3) – GLOBAL
2014
2015
2016
410,832

344,543434,022

Var. 2015
vs. 2016
26.0%

207,198
618,029295,864
640,407220,647654,669-25.4%
2.2%

WATER CONSUMPTION PER UNIT PRODUCED

20
liters91
liters1 EMBRACOCOMPRESSOR

34%
66%

Water supply networks

12.760litersOf all the water we consumed in 2016, on average, 27% was reused(as in the previous year), with special emphasis on the compressor
plants in Brazil, China and Mexico, as shown in the table below.

Plants that stand out for the reutilization of water
2015
2016
China Compressors
17%
15%
Mexico Compressors
30%
34%
Brazil Compressors
44%
45%

In addition to the treated effluent reuse system, we also havea rainwater collection system in Brazil’s compressor plant, withan area of approximately 900 m², which in 2015 collected morethan 4,000 m3 of water.

1/2 kgOF PLASTIC

WATER CONSUMPTION BY SOURCE IN 2016

Wells

adjacent
information

Waste

Water consumption

Water supply
networks
Wells
TOTAL

engagedpeople1
SMARTPHONEENGAGEDPEOPLESUSTAINABILITY REPORT 2015 & 2016
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A Team of Talents

Our employees are essential to our business. Present on different
continents, with diverse nationalities and cultures, we have a team oftalents marked by diversity and we consider this characteristic as oneof our main competitive differentials.
Following our people strategy, we seek to provide the tools necessary
for our talents to have an excellent work experience and achieve
extraordinary results. To reach this goal, we work on three pillars:

EXTRAORDINARY PERFORMANCE
A highly effective organization that consistently
delivers results above expectations.
GREAT PEOPLE
Diverse talents, prepared to be leadersof the future.
WINNING CULTURE
Internally and externally recognized
as a great place to work.

adjacent
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Transforming Communities

ENGAGED PEOPLE
A Team of Talents

engagedpeopleBEST COMPANIES TO WORK FOR
In 2016, for the 5th time, we were included on the list ofBest Companies to Work for by Você S/A Guide.
Years in which we were elected one of the best companies
to work for:
•
•
•
•
•

2011
2012
2013
2014
2016

GRI
index

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Transforming Communities

EMPLOYEE PROFILERESPECTING LABOR RELATIONSGRI G4-10
Present in seven countries, we are always attentive
to comply with local labor laws:

On December 31, 2016, we had 10,966 employees, 1.6% higher
than in 2015.
EMPLOYEES BY GENDER IN 2016

29%
71%

Women

Employees by job category in 2016
President and Vice-presidents
Executive Board
Senior Managers
Leaders
Administratives
Operational (Direct and Indirect)
TOTAL

9
23
86
208
1,852
8,662
10,966Men

EMPLOYEES BY COUNTRY IN 2016
0%0%

EMPLOYEES BY TYPE OF EMPLOYMENT IN 2016
4%

21%

12%
46%

96%

5%
16%

BrazilChina
Italy
MexicoSlovakia
United States
RussiaFull Workday

No control of workday

Employees covered by collective bargaining agreements
GRI G4-11
Percentage ofUnit
employees covered
Brazil100%
China (Compressors)
95%
China (Electronics)
0%
United States
N/A1
Italy
100%
Slovakia
100%
Mexico70.67%
RussiaN/A2
1. The operation in the United States is run through a sales office and a warehouse,
which – according to US law – does not require a collective bargaining agreement.
2. In Russia we have only one sales office – which does not require a collective
bargaining agreement.

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TURNOVER

The turnover rate in 2016 was 18.8%, 6.4% lower than that of2015, when we registered a turnover of 25.2%.

credits

Transforming Communities

Hirings were carried out as follows:

GRI G4 LA1
In 2016, we hired, globally, 1,898 people, 94.3% more than in 2015,
when we hired 977 people. In the same period, we reduced thenumber of dismissals by 24.1% from the previous year.

GRI
index

By
genderBrazil

Male

2015
207

2016
525

Female
Total

111
318

149
674

By age
group
< 30
years
from 30
to 50
years
> 50
years
Total

BrazilChina
Electronics
2015 20168
10

Hirings in 2015 and 2016 by gender and age
China
Italy
MexicoSlovakia
Compressors
2015 2016 2015 2016 2015 2016 2015 2016
93
203
7
2
39
250
107
352

UnitedStates2015 2016
5
3

20
9
28
19
China
Electronics
2015 2016

23
53
116
256
China
Compressors
2015 20162
4
7
7
UnitedStates2015 2016

2015

2016

218

461

11

10

65

94

203

17

9

6

10

0

318

674

28

1
8

2
4
Italy

294
333

168
418

Mexico

60
167

166
518

Slovakia

2015

2016

2015

2016

2015

2016

94

4

2

176

232

78

264

0

49

160

4

2

154

185

75

235

0

2

2

0

0

3

1

14

19

116

256

8

4

333

418

167

Russia

TOTAL

2015
0

2016
0

2015
466

2016
1,345

0
0

2
2

511
977

553
1,898

Russia

TOTAL

2015

2016

2015

2016

0

0

0

552

1,063

6

6

0

2

399

802

19

1

1

0

0

26

33

518

7

7

0

2

977

1,898

Dismissals were performed as follows:BygenderBrazil

Male

2015
1,072

2016
561

Female
Total

504
1,576

308
869

By agegroup

Brazil
2015

2016

China
Electronics
2015 2016
913

Dismissals in 2015 and 2016 by gender and age
China
Italy
MexicoSlovakia
Compressors
2015 2016 2015 2016 2015 2016 2015 2016
192
210
21
13
108
205
134
246

UnitedStates2015 2016
1
10

40
30
49
43
China
Electronics
2015 2016

104
86
296
296
China
Compressors
2015 20163
3
4
13
UnitedStates2015 2016

10
31

2
15
Italy

2015

< 30
835
501
8
8
155
148
2
years
from 30
to 50
617
308
41
35
113
117
21
years
> 50
124
60
0
0
28
31
8
years
Total
1,576 869
49
43
296
296
31
Turnover 30.9% 17.1% 19.8% 18.9% 20.2% 20.2% 5.4%

465
573

301
506

Mexico

58
192

78
324

Slovakia

2016

2015

2016

2015

2016

0

239

222

42

152

0

11

319

272

95

137

4

15

12

55

35

Russia
2015
0

2016
0

0
0

0
0

Russia

TOTAL
2015
1,537

2016
1,258

1,184
808
2,721 2,066
TOTAL

2015

2016

2015

2016

0

0

0

1,281

1,031

4

10

0

0

1,210

890

0

3

0

0

230

145

15
573
506
192
324
4
13
0
2.7% 43.4% 40.1% 9.4% 13.9% 9.5% 32.5% 0.0%

02,721 2,066
0.0% 25.2% 18.8%

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HIRINGSGRI G4-EC6IDENTIFYING SUCCESSORS

Our recruitment process is conducted by trained recruiters locatedin each of the plants. For more specific positions we count on local
or global specialized consultancies to search for professionals
in the market.
Selection is carefully conducted based on our Leadership Model,
Values and Strategy taking into account the specifics of each position.
We promote speed and quality in our selection processes, as wellas the candidate’s experience. We value and encourage constantcommunication with candidates and always have with them arelationship of respect and transparency. The onboarding process
begins during the selection phase, where the candidate will havethe opportunity to be in touch with our business concepts andother relevant information.

LEADERSHIP MODEL
Since 2014, we’ve been working with a Leadership Model that aims toguide employees about the attitudes and behaviors expected by Embraco.
This model is based on the premise that everyone is a leader, whether ofthe business, a function, a team, or themselves. Therefore, all employees
should be protagonists of their career and their development within thecompany. Our Leadership Model is divided into four attributes:
Live and Lead the Embraco Values – our values are the basis for what
we do every day and sustain the attributes described below.
Create a compelling and inspiring strategy – the best way tocreate a compelling and inspiring strategy is by having passion for our
products and our brand, challenging ourselves and playing to win withdetermination and persistence.

LOCAL HIRING(LEADERSHIP POSITIONS*)
BrazilChina Compressors
China Electronics
Italy
Slovakia
MexicoUnited States
Russiaadjacent
information

86%
100%
100%
100%
100%
100%
75%
100%

* Leadership positions are: president, vice president, administrative, executive board and leaders

Build and sustain broad followership – there’s no better way to build
and sustain a broad followership than by developing people to their fullpotential and by breaking barriers.
Drive differentiated results – the only way to achieve differentiatedresults is by leading with speed, having ownership and using straight talkto deliver assertive feedbacks and messages.

Regardless of the career path the employee wishes to pursue –administrative, technical or projects – we have tools to identify
the growth potential of each of our talents.
Administrative and project career professionals have their potential
evaluated in a Succession Committee, which uses as a base our
succession planning, leadership model and 9 box methodology.
People focused on a technical career are evaluated by a TechnicalSuccession Committee to identify future growth possibilities.

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profileresponsibility and efficiency
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performanceengagedpeopleA Team of Talents

We conducted an annual survey to map the level of employee
engagement and contribute to the success of our strategy. The survey
is carried out globally with all our professionals (salaried and blue
collars) and also evaluates the employees’ perception regarding theperformance of our leaders, identifying strengths and opportunities
for improvement.
In 2016, 89% of our employees responded to the survey, while in 2015that number was 90%.
The survey is confidential and our leaders use the results for
improvement actions with their teams.

In addition to the fixed compensation, offered to all employees, we use
a Profit Sharing Program (PPR) to motivate teamwork and the spirit ofwinning of our talents. Besides our corporate goals, each country has
its own local goals.

The plants in Brazil, Italy, China and the office in the US offer a pension
plan to its employees.

GRI G4-EC5
Following our goal to achieve extraordinary results, we seek to recognize ourtalents for their efforts. For this, our salary policy follows meritocratic criteria
to reward our professionals according to their performance and potential.

Italy: joining the pension plan is voluntary and is foreseen in collective
agreements. The contribution is 1.4% (employees) and 4% (managers).
We contribute with the same value.

Ratio of the lowest wage comparedto local minimum wage
Units
2015
Brazil174,77%China Compressor
113,78%China Electronics
118,75%
Italy
136,76%
Slovakia
100,88%Mexico268,62%
United States
193,10%Russia500,20%China: has statutory pension insurance for all employees, and thecontribution is 8% by the employee and 20% by us.
2016
176,56%
105,08%111,11%
136,76%
100,00%257,80%
193,10%590,55%credits

PROFESSIONAL DEVELOPMENT
To enhance the professional growth of our talents we use the Career
Compass, a tool that helps employees map out, discuss and document
a career plan that identifies potential next roles and experiences fortheir development.

PENSION PLAN
GRI G4-EC3

Brazil: all employees can participate in the pension plan contributing
1% of the nominal salary up to R$7,260.00. Above this amount you
can choose to contribute up to 5.5% of the difference. Our contribution
varies according to the professional’s age, corresponding to between
50% and 200% of the value chosen by the employee.

COMPENSATION

GRI
index

Transforming Communities

PROFIT SHARING PROGRAMENGAGEMENT

adjacent
information

United States: all employees are eligible for the benefit and cancontribute with a percentage of their salary – up to the annual limit
accepted by the country’s tax agency. We contribute with 75% of
the value.

W CAREER
In order to enable all our talents to evolve in the areas in which they mostidentify, we use a Career W model to develop and retain people withdifferent leadership profiles. Depending on the area of activity and theactivities performed, the employee will have a different career path, alwaysaligned with their objectives:
Technical – employees working in research and engineering functions
involved in product transformation processes.
Projects – employees who work on large projects defined in the
GPL (Global Product Leadership), with high technological andmanagerial complexity.
Administrative – employees working in administrative and support areas,
not involved in product transformation processes.
Until they reach a certain level, Technical and Project career professionals
are part of a Talent Pool, in which they have the opportunity to try out
different areas and have a more general view so as to later on become
project leaders or specialists on a given subject.

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CORPORATIVE EDUCATION

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TOTAL HOURS OF TRAINING IN 2015
(BY JOB CATEGORY)GRI G4-LA9

Experience

Exposure

Educationmeans possibilities

means challengemeans discovery

Our trainings use a BDA structure (Before, During and After classroom
activities) thus reinforcing the sustainability of the knowledge acquired.
Some types of knowledge transfer used are:• Technology: online tools such as videos and e-learning methodologies;• Relationship: coaching, mentoring and feedback practices;• Classroom: classes, seminars and face-to-face training; and• Practice: workshops, benchmark studies, and job rotation to provide
a holistic view of the business to our professionals.
In 2016, we used 227,800 hours to train our employees. On average, inthe last year we offered 28.8 hours of formal training per employee – inthe previous year, this number was 40.2 hours. The reduction is due to thetransformation moment that we’re going through. Strategically, during thepast year, through Transformation (more on page 12) we’ve been focusedon revising our culture to become simpler, more innovative, and focusedon our customers.

credits

Transforming Communities

In the last two years, trainings were offered as follows:

To achieve our 2020 Vision, we provide a Development Programs
Catalogue based on EEE learning methodology: Experience, Exposureand Education. The goal is to guide employees on development
actions to support them throughout their career path.

GRI
index

Hours of Training in 2015
Average Hours
Job Category
F
M
Executives (President,
Vice-Presidents, Directors and
14.0
16.3
Senior Managers)
Leaders
25.9
32.5
Employees (Administrative,
20.2
51.1
Operational and Others)
Average per employee
20.3
50.3

Hours of Training in 2016
Average Hours
Job Category
F
M
Executives (President,
Vice-Presidents, Directors and
19.6
21.3
Senior Managers)
Leaders
24.7
22.2
Employees (Administrative,
14.3
23.3
Operational and Others)
Average per employee
14.6
23.3

Average
Hours

1,882 hours(0.4%)

6,358 hours(1.5%)

16.1

Executives(President, VicePresidents, Directors
and Senior Managers)
Leaders

30.3

425,871 hours(98.1%)

40.7

Employees(Administrative,
Operational and Others)

40.2

TOTAL HOURS OF TRAINING IN 2016
(BY JOB CATEGORY)
Average
Hours

2,492 hours(1.1%)

4,761 hours(2.1%)

21.1
22.9

Leaders

20.7
20.8

Executives(President, VicePresidents, Directors
and Senior Managers)

220,548 hours(96.8%)

Employees(Administrative,
Operational and Others)

More information on page 55.
In order for employee development to gain even more scope and breadth, in the period covered by the report we strengthened the figure of“Knowledge Ambassadors”, who are internal multipliers of the training programs.
In addition to internal programs, we also invest in scholarships so that employees between the operational and administrative levels take technical,
undergraduate or postgraduate courses.

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PERFORMANCE ASSESSMENTGRI G4-LA11
To evaluate the performance of our talents, we carry out an individual
assessment based on the Extraordinary Performance & Results (EP&R) model,
structured in five dimensions and divided into two aspects.
What was delivered:• Results vs. objectives• Job scope
How deliverables were made:• Demonstrate Values• Leadership and management skills• Talent and personal development

EMBRACO’s JOURNEY
In 2015, we launched Embraco´s Journey,
an online platform that consolidate allprocesses and tools regarding career anddevelopment in a single place to make iteven easier to our employees to get on
board on the People Management tools.
Leadership and employees can find whatis expected from them in each step of the
Embraco’s Journey.

Align& Commit

EmbracoJourney

In terms of process, our assessment follows the Embraco’s Journey (moreinformation in the box below) and foresees three main steps for the year:•••

Align and Commit– setting goals for the year based on
our strategy.
Develop and Deliver – a mid-process review to assess what has
already been delivered and, if necessary, make adjustments tothe path.
Confirm and Reward – at the end of the year we assessdeliverables and, according to the results, the employee receives
his variable remuneration.

At the end of this process, all administrative employees receive personalized
feedback, which aims to support their professional development.

Confirm& Reward

Develop& Deliver

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HEALTH AND SAFETYBEHAVIOR-BASED SAFETY AND SMAT

Our employees’ safety is a priority goal for the management of ourbusiness. To monitor and administer this theme, as of 2016 each one of
our plants started to hold weekly meetings, always with the presence of theplant’s vice president and director, as well as other guests to discuss safetyissues. The theme is also addressed monthly in the leadership meeting,composed of the president, vice presidents and directors from all thecompany’s units.

Since 2011, we’ve adopted globally Behavior-Based Safety (BBS), a
program that seeks to create a safe work environment by observing
employee behavior and providing regular feedback to professionals
connected to manufacturing activities.

In order to manage operational safety, since 2013 we’ve counted on the
support of the WCM methodology that, within this theme, has as a clear
objective to achieve and maintain the goal of ZERO accidents. Additionally,in 2016 we conducted more than 140 events globally to prevent accidents.
Through all these actions, it was possible to achieve a 46% reduction in thenumber of accidents with time away in 2015.
In addition to the WCM tools for the Safety pillar, employees in our plants
have other programs, which are described below.
SAFETY GOLDEN RULES
Our Safety Golden Rules guide the daily behavior in all activities
performed in the plants by our employees, suppliers and visitors. In
2015 and 2016, we worked to disseminate these rules globally.

adjacent
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With the introduction of WCM, we began a transition from BehaviorBased Safety to SMAT, a tool that, like BBS, focuses on the behavioral
phenomenon with the goal of changing the safety culture.
INTERNAL COMMISSION FOR ACCIDENT PREVENTION (CIPA)
Our units in Brazil count on the Internal Commission for Accident
Prevention (CIPA), which complies with the Regulatory Standard 5(NR-5) of the Brazilian Ministry of Labor.
In 2016, we had 156 members in CIPA, who conducted several safetyfocused procedures, such as meetings, inspections and campaigns,
along with the Internal Week of Prevention of Accidents in the Workplaceand Environment (SIPATMA).
WORKFORCE REPRESENTED BY FORMALHEALTH AND SAFETY COMMITTEESGRI G4-LA5
All our plants have formal health and safety committees. Globally,
348 employees are part of these committees and represent 99.6%
of our workforce. The other 0.4% includes employees from Russia
and the United States, countries where we work only with sales
offices with a small number of professionals and therefore do
not require such committees.

GRI
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HEALTH AND SAFETY ISSUES COVERED BY FORMALAGREEMENTS WITH TRADE UNIONSSAFETY PERFORMANCEGRI G4-LA6

GRI G4-LA8
In 2016, our occupational safety indexes were better than those presented in 2015 – with the exception of occupational illness, which remained
practically stable. The main highlights were the rates of injuries and absenteeism, which reduced respectively 0.97 p.p. and, 54 p.p..

Units
Brazil Compressors
China Compressors
Italy Compressors
Slovakia Compressors
Mexico Compressors
Brasil Foundry1
Brazil Components1
China Electronics
United States
Russia2
GLOBAL AVERAGE

Health and Safety in 2015 & 2016
InjuryOccupational Illness
Rate
Rate
2015
2016
2015
2016
1.71
1.13
0
0
0.75
0.7
0
0
3.98
1.87
0
0
3.57
1.86
0
0.02
3.93
1.93
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2.22
1.25
0.00
0.00

Days Away
Rate
2015
2016
0.06
0.07
0.13
0
1
0.27
0.11
0.26
0
0.16
0
0
0
0
0.11
0.10

1. Injury rates and days away at the Itaiópolis plant are accounted for in the line “Brazil (Compressors)”.
2. Our operation in Russia has only one sales office – therefore the rates of injuries, occupational illnesses, days away and absenteeism are not measure.

Absenteeism
Rate
2015
2016
2.91
2.6
1.55
0.7
2.72
2.67
0.12
2.67
1.78
2.23
3.19
3.14
2.62
2.04
1.07
0.73
5.6
0
2.40
1.86

The formal health and safety agreements established between us andthe trade unions are carried out country by country and involve thefollowing themes:
Brazil: job stability after 60 days of leave from the National Social
Security Institute (INSS).
Slovakia: use of PPE; medical examination based on job position;
periodic training in fire safety and protection; participation of the union in
investigations into possible accidents or occupational illnesses; provisionof appropriate information in the event of a change in technology or
equipment that may have an impact on safety; and periodic meetings withstaff members of the formal health and safety committee.
Italy: safety assessment through the occupational health program; andperiodic meetings with the union, upper leadership and responsible doctors(labor medicine) to discuss issues related to health and safety at work.
Mexico: use of PPE; and compliance with the health and safety
legal requirements.
United States: use of PPE; and compliance with the health and safety
legal requirements.
China: use of PPE; and compliance with the health and safety
legal requirements.

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MAIN ACTIONS

We believe in the potential of transforming realities in thecommunities in which we operate and engage our employees sothat they act in some locality of their interest, carrying out different
activities that directly benefit the population that lives around ourplants and offices worldwide.

Held in Brazil since 1992, the Embraco Ecology Award is our main social
investment action in Brazil and aims to strengthen environmental education inearly childhood education and elementary schools. In its more than 24 editions (thelast two in 2015 and 2016), the award has already received 823 projects, of which
106 were selected and implemented under the company’s sponsorship. With morethan 100,000 beneficiaries, it was ranked among the best practices of the United
Nations’ Global Compact.

In the last two years, we also offered close to five thousand hours
of community work around the world, with the support of more than
500 volunteers, at events such as Global Volunteer Day (“Prove” aDifferent Day).

Following the Brazil plant’s model, Slovakia has also held the Embraco Ecology
Award in the local community since 2007. In 2015, four kindergartens and four
primary schools received our support to carry out their school projects. In 2016, we
expanded the number of schools and kindergartens that could submit their projects.
The next step is to motivate these institutions to join the others and also to carryout ecological projects.
Another of Slovakia’s highlight in 2015 was a Project with the Slovak University ofTechnology, through which we provided financial support for students to build anelectric race car, encouraging the development of innovative and sustainable solutions.
In Mexico, the main actions involved the family of our employees, who had theopportunity to visit our plant and learn more about Embraco, as well as kids withdisabilities, who participated in activities with our volunteers on Children´s Day.

TRANSFORMING THE PLANET
In 2015 we once again received the Via
Bona Slovakia awards in the Community
Partner category and the Golden Ant Awardin recognition of our social responsibility
actions in Slovakia.

GRI
index

credits

Transforming Communities

Transforming Communities

The volunteer work of our employees aspires to value thecommunities that receive our units worldwide. Aiming to transformand generate shared value, in 2015 and 2016 we invested in social
projects and voluntary activities in communities in Brazil, China,
Slovakia, Italy and Mexico, which benefited and contributed to the wellbeing of more than 35 thousand people.

adjacent
information

In Beijing, China, the main activity was Education for Migrant Children, a project
carried out for three years by 12 Embraco volunteers who are connected with thesestudents through monthly letters and biannual face-to-face meetings. In Qingdao(China), to engage the community, employees carried out a collective cleaning effort,emphasizing the importance of voluntary work and preserving the environment.
In Italy, we worked on environmental education with a local school to raisechildren’s awareness of how today’s decisions impact our future.

EMBRACO SPORTS ASSOCIATION (ADE)For 41 years we’ve offered leisure and recreation to theentire community of Joinville (Brazil), where we maintain ourheadquarters. At the Embraco Sports Association (ADE) it’s
possible to enjoy quality-of-life moments in a safe, pleasant
place, surrounded by nature.
Among the activities offered are gym, gymnastics, martial
arts and a running group. For the children to spend theirenergies, ADE offers schools for Volleyball, Soccer, Judoamong other activities. The Association’s infrastructure also
houses an athletic track, park, restaurant, space for events,
bowling and sports courts.

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ADJACENT INFORMATION
Energy consumption
GRI G4-EN5

Energy intensity per plant (GJ/unit)

Fuel

BrazilCompressors

BrazilFoundry

BrazilComponents

China
Compressors

Slovakia
Compressors

Italy
Compressors

MexicoCompressors

China
Electronics

UnitedStatesEnergy used percompressor produced

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

Natural Gas (m3)0.014468

0.014711

0.139302

0.1261800.000000

0.000000

0.009668

0.009956

0.021780

0.022025

0.060780

0.068295

0.015745

0.016080

0.000000

0.000000

0.051960

0.000029

0.018076

0.018345

Methanol (L)0.000000

0.000000

0.000000

0.000000

0.000007

0.000010

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000013

0.000013

Propane (L)0.000000

0.000000

0.000000

0.000000

0.000072

0.000099

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.0001280.000132

GLP (kg)

0.000476

0.000364

0.052222

0.066329

0.000066

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000446

0.000321

Diesel (L)0.0001220.000121

0.000000

0.000718

0.000000

0.000000

0.000047

0.000028

0.000131

0.0001020.000366

0.000318

0.000000

0.000023

0.000000

0.000000

0.000000

0.000000

0.0001050.000098

Gasoline (L)0.000011

0.000012

0.000000

0.000000

0.000000

0.000000

0.0001550.000159

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000035

0.000036

Ethanol (L)0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000015

0.000012

0.000004

0.000005

0.000012

0.000015

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000004

0.000004

Kerosene (L)0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000009

0.000007

0.000005

0.000003

0.000013

0.000009

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

0.000003

0.000002

0.023764

0.022085

2.926780

2.973878

0.000291

0.000359

0.016926

0.017157

0.025532

0.025571

0.071251

0.079289

0.020558

0.020612

0.001521

0.001380

0.016938

0.019358

0.032604

0.032481

Direct Energy

Indirect Energy
Electric Energy (kWh)SUSTAINABILITY REPORT 2015 & 2016
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Emissions

GRI G4-EN15 | G4-EN16 | G4-EN19

GHG emissions by unit 2015 and 2016 (tCO2e)
Unit
Brazil Compressors
China Compressors
Italy Compressors
Slovakia Compressors
Mexico Compressors
Brazil Foundry
Brazil Components
Brazil Electronics1
China Electronics
United States
Total Embraco (Global)

Scope 1
2015
15,471
3,920
3,363
7,638
5,817
859
475
0
0
266
37,8092016
16,018
4,406
3,130
7,758
6,335
905
247
0
0
0
38,799Var. 2015
vs. 2016
3.5%
12.4%
-6.9%
1.6%
8.9%
5.3%
-48.1%-100.0%
2.6%

Scope 2
2015
11,35817,634
3,932
9,238
12,194
7,527
568
191
1,123
254
64,019

1. Brazil’s Electronics plant was deactivated at the beginning of 2015 however, some missions were still accounted in this period.

2016
7,041
17,487
3,618
9,338
12,691
5,209
344
0
1,142
271
57,141

Var. 2015
vs. 2016-38.0%
-0.8%
-8.0%
1.1%
4.1%
-30.8%-39.3%-100.0%
1.6%
6.4%-10.7%

Scope 1
+ Scope 2
2015
26,82921,553
7,295
16,87618,010
8,386
1,043
191
1,123
520
101,8282016
23,05921,893
6,749
17,096
19,027
6,113
591
0
1,142
271
95,940Var. 2015
vs. 2016-14.1%
1.6%
-7.5%
1.3%
5.6%
-27.1%-43.3%-100.0%1.6%-48.0%
-5.8%

GRI
index

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Waste

GRI G4-EN23

Waste Generation (t)Slovakia
Compressors

Italy Compressors

MexicoCompressors

Brazil Compressors

China Compressors

Brazil Foundry

Brazil Components

China Electronics2

United States

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

Economic recycling

44,56944,625

5,303

4,715

21,36322,900

4,418

3,498

12,45513,800

189

2,013

1

448

21

26

553

2,727

0

0

88,872

94,751

Environmental
recycling

414

692

129

108

85

175

416

438

868

245

62

905

58

10

0

0

0

0

0

0

2,032

2,574

Landfill1

422

119

327

291

178

164

185

107

166

179

13,525

14,444

1

26

2

0

215

1

0

0

15,022

15,330Construction/
remedial waste

143

124

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

143

124

45,54845,559

5,759

5,114

21,62623,239

5,019

4,043

13,48914,224

13,776

17,361

61

484

22

26

768

2,728

0

0

106,069

112,778

Economic recycling

241

230

29

21

41

49

0

0

0

0

0

15

5

1

0

0

0

0

0

0

317

316

Environmental
recycling

329

466

5

1

1,716

1,900

43

42

38

99

0

56

49

58

0

0

0

0

0

0

2,179

2,621

Landfill

109

42

0

0

191

65

33

79

173

50

38

61

3

1

0

0

0

0

0

0

547

298

Incineration

0

0

143

120

0

0

0

0

85

52

0

0

0

0

18

14

0

0

0

0

246

187

SUBTOTAL

679

738

177

142

1,948

2,014

76

121

296

201

38

131

57

61

18

14

0

0

0

0

3,289

3,421

46,227

46,297

5,936

5,256

23,57425,253

5,095

4,164

13,785

14,425

13,814

17,493

118

545

40

40

768

2,728

0

0

109,357

116,200

Russia3

TOTAL

Non-hazardous waste

SUBTOTAL
Hazardous waste

TOTAL

1. Brazil’s compressor plant zeroed out sending industrial waste to landfills in 2015, but we still send other types of waste to them.
2. China’s electronics plant zeroed out sending industrial waste to landfills in March 2016, so the accumulated total for the year still included 0.24 tons of waste sent to them.
3. In Russia we only have an office, so no relevant waste is generated (compared to the countries where we have factories).

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Employee Profiles
GRI G4-10

Profile of Employees in 2016
BrazilChina Compressors

China Electronics

Italy

MexicoSlovakia

United States

RussiaTOTAL

Employees by
employment type

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Full workday (8h)

1,142

3,540

313

1,155

178

50

169

383

428

799

783

1,504

15

17

6

4

3,034

7,452

Without workday control

79

318

0

0

0

0

0

0

7

29

8

31

2

6

0

0

96

384

Total

1,221

3,858

313

1,155

178

50

169

383

435

828

791

1,535

17

23

6

4

3,130

7,836

Employees by job
category

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Vice-presidents andPresident

1

8

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

8

Directors

1

20

0

0

0

0

0

1

0

0

0

1

0

0

0

0

1

22

Sr Managers

5

40

5

6

0

1

2

9

0

4

0

8

1

3

0

2

13

73

Leaders

17

63

15

24

2

2

4

7

7

23

11

29

1

2

1

0

58

150

Administrative

201

654

111

181

28

32

28

65

36

121

131

224

15

18

5

2

555

1,297

Operational (Direct &Indirect)

952

2,991

182

944

148

15

135

301

392

680

649

1,273

0

0

0

0

2,458

6,204

Others

44

82

0

0

0

0

0

0

0

0

0

0

0

0

0

0

44

82

1,221

3,858

313

1,155

178

50

169

383

435

828

791

1,535

17

23

6

4

3,130

7,836

Total by gender
Total by country

5,079

1,468

228

552

1,263

2,326

40

10

10,966

SUSTAINABILITY REPORT 2015 & 2016
content

message fromleadership

60

innovation forsustainability

profileEnergy consumption

responsibility and efficiency
in the value chain

Emissionsenvironmental
performanceadjacent
information

engagedpeople

Waste

GRI
index

Employee Profiles

credits
Corporate education

Employee Profiles
GRI G4-10

Profile of Employees in 2015
BrazilChina Compressors

China Electronics

Italy

MexicoSlovakia

United States

RussiaTOTAL

Employees by
employment type

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Full workday (8h)

1,211

3,516

355

1,081

197

51

174

402

870

412

704

1,328

15

20

5

4

3,529

6,814

Without workday control

73

293

0

28

0

0

0

0

9

28

0

9

2

5

0

0

84

363

Total

1,284

3,809

355

1,109

197

51

174

402

879

440

704

1,337

17

25

5

4

3,613

7,177

Employees by job
category

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Vice-presidents andPresident

1

7

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

7

Directors

1

16

0

2

0

0

0

3

0

0

0

1

0

1

0

0

1

23

Sr Managers

4

44

4

5

0

0

2

8

0

6

0

7

0

3

0

2

10

75

Leaders

20

54

18

31

3

2

5

9

11

17

9

26

3

1

1

0

70

140

Administrative

216

650

117

196

27

35

32

66

67

86

100

205

12

15

3

2

574

1,255

Operational (Direct &Indirect)

1,005

2,972

216

874

167

14

135

316

801

331

595

1,098

2

5

1

0

2,922

5,610

Others

37

66

0

1

0

0

0

0

0

0

0

0

0

0

0

0

37

67

1,284

3,809

355

1,109

197

51

174

402

879

440

704

1,337

17

25

5

4

3,615

7,177

Total by gender
Total by country

5,093

1,464

248

576

1,319

2,041

42

9

10,792SUSTAINABILITY REPORT 2015 & 2016
content

message fromleadership

innovation forsustainability

profileEnergy consumption

61

responsibility and efficiency
in the value chain

Emissionsenvironmental
performanceadjacent
information

engagedpeople

Waste

GRI
index

Employee Profiles

credits
Corporate education

Corporate education
GRI G4-LA9

Training Average 2016
BrazilJob Category

China Compressors

China Electronics

Italy

MexicoSlovakia

United States

Averageby gender

RussiaAverageby jobcategory

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Executive (President, VP,
Director, Sr Manager)

15.7

19.9

21.1

27.2

-

137.0

24.3

14.7

-

-

-

28.8

30.0

43.3

-

4.0

19.6

21.3

21.1

Leaders

24.4

22.2

21.7

35.9

51.5

92.0

74.6

18.1

2.3

3.8

20.8

20.2

45.0

40.0

4.0

-

24.7

22.2

22.9

Employee (Administrative,
Operational and Others)

4.3

8.5

73.4

108.4

64.2

48.3

4.3

10.9

1.9

1.7

5.5

10.4

5.0

5.0

8.8

4.0

14.3

23.3

20.7

Average per employee

4.7

8.9

70.1

106.4

64.1

51.8

6.2

11.1

1.9

1.7

5.7

10.6

8.8

13.0

8.0

4.0

14.6

23.3

20.8

Training Average 2015
BrazilJob Category

China Compressors

China Electronics

Italy

MexicoSlovakia

United States

Averageby gender

RussiaAverageby jobcategory

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Executive (President, VP,
Director, Sr Manager)

4.1

4.8

26.3

17.6

0.0

0.0

19.5

32.1

0.0

0.3

-

67.2

-

32.0

-

1.5

14.0

16.3

16.1

Leaders

23.1

23.8

25.0

39.5

66.7

152.0

56.7

64.8

2.0

1.9

36.4

41.9

22.0

30.0

1.0

0.0

25.9

32.5

30.3

Employee (Administrative,
Operational and Others)

10.5

11.2

100.8

259.5

54.7

42.8

32.1

26.2

1.1

3.9

10.9

16.6

5.4

4.5

4.0

1.5

20.2

51.1

40.7

Average per employee

10.6

11.3

96.1

251.8

54.9

52.0

32.7

27.2

1.1

3.7

11.2

17.4

8.3

9.9

3.4

1.5

20.3

50.3

40.2

GRI

INDEX

SUSTAINABILITY REPORT 2015 & 2016
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63

responsibility and efficiency
in the value chain

environmental
performanceengagedpeopleGRI
index

adjacent
informationcredits

GRI index

GRI INDEXGRI G4-32

PROFILE
Ref.

Description

Direct response
or page indication

Global Compact

SDG

1. Strategy and Analysis
G4-1Statement from the most senior decision-maker about the relevance of sustainability to the organization

6

G4-2

Description of key impacts, risks and opportunities

17

2. Organizational Profile
G4-3

Name of the organization

8

G4-4

Primary brands, products, and/or services

8

G4-5

Location of organization’s headquarters

8

G4-6

Number of countries where the organization operates

8

G4-7

Nature of ownership and legal form

G4-8

Markets served

8

G4-9

Scale of the organization

8

G4-10

Profile of the workforce

46

G4-11

Percentage of employees covered by collective bargaining

46

G4-12

Description of Company's supply chain

26

G4-13

Significant structural changes during the reporting period

G4-15

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses

19

17

G4-16

Significant participation in advocacy associations and/or national/international entities in which the organization: has seats in groups responsible forcorporate governance; participates in projects or committees; contributes with substantive funding beyond the basic rate as an associated organization

22

17

Whirlpool S.A.
compressor unit

83

8

In the period covered by thereport there were no relevantchanges in the structure

SUSTAINABILITY REPORT 2015 & 2016
content

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64

responsibility and efficiency
in the value chain

environmental
performanceengagedpeopleadjacent
information

GRI
index

credits

GRI index

Ref.

Description

Direct response
or page indication

3. Identified Material Aspects and Limits
For strategic reasons thisinformation is not disclosed

G4-17

List of entities included in the financial statements

G4-18

Process to define report content and boundary

4

G4-19

List of material aspects identified in the content definition process

4

G4-20

Limit of each material aspect for the organization

The materiality process did notinclude the definition of thelimit of each aspect.

G4-21

Limit of each material aspect outside the organization

The materiality process did notinclude the definition of thelimit of each aspect.

G4-22

Explanation of the effect of any re-statements of information provided in earlier reports

G4-23

Significant changes from previous reporting periods in the scope, limit of aspects addressed

There are no restatements
of information provided inprevious reports.
4

4. Stakeholder Engagement
G4-24

List of stakeholder groups engaged by the organization

4

G4-25

Basis used to identify and select stakeholders for engagement

G4-26

Approach adopted by the Company to engage stakeholders and frequency of engagement

4

G4-27

Main topics raised during the stakeholder engagement and measures adopted by the Company to address them

4

Identification and selection of
stakeholders for engagement
based on internal studies

Global Compact

SDG

SUSTAINABILITY REPORT 2015 & 2016
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profileinnovation forsustainability

65

responsibility and efficiency
in the value chain

environmental
performanceengagedpeopleGRI
index

adjacent
informationcredits

GRI index

Ref.

Description

Direct response
or page indication

Global Compact

SDG

6

16

5. Profile of Report
G4-28

Reporting period

2

G4-29

Date of most recent previous report

2014

G4-30

Reporting cycle

Biennial

G4-31

Contact data for questions regarding the report

G4-32

Option for applying (core or comprehensive) GRI index guidelines and external verification

This report complies with the
G4 Core option Guideline

G4-33

Policy and practice to submit the report to an external assurance

Our Sustainability Report 2015
& 2016 has not been subjected
to external assurance

68

6. Governance
G4-34

Governance structure, including committees

10

7. Ethics and Integrity
G4-56

Organizational values, principles, standards and norms of behavior, such as conduct and ethics codes

9 and 11

SUSTAINABILITY REPORT 2015 & 2016
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environmental
performanceengagedpeopleGRI
index

adjacent
informationcredits

GRI index

PERFORMANCE
Ref.

Description

Direct response
or page indication

Global Compact

SDG

Economic Performance
EC3

Coverage of pension plan obligations defined that the organization offers

49

EC5

Variation in proportion of lowest wage compared to local minimum wage in significant operational units.

49

5 and 8EC6Proportion of upper management hired from the local community in significant operating units

48

8

EN3

Energy consumption inside the organization

37

7

7, 12 and 13

EN5

Energy intensity

37 and 56

7

7, 12 and 13

EN6

Reduction of energy consumption

37 and 39

7 and 87, 12 and 13

EN7

Reductions in energy requirements related to products and services

14 and 23

7, 8 and 9

7, 12 and 13

EN15

Direct emissions of greenhouse gases (GHG) (Scope 1)

40 and 57

73, 12 and 13

EN16

Indirect emissions of greenhouse gases (GHG) from the acquisition of energy (Scope 2)

40 and 57

73, 12 and 13

EN19

Reduction of greenhouse gas emissions (GHG)

40 and 57

73, 12 and 13

EN23

Total weight of waste, broken down by type and disposal method

41 and 58

7

3, 6 and 12

EN24

Total number and volume of significant leaks

There were no significant leaks
during the reporting period.

7

3, 6 and 12

EN28

Percentage of products and their packaging recovered in relation to the total products sold, by product category

35

7,8 and 9

12

EN32

Percentage of new suppliers selected based on environmental criteria

27

7 and 812EN33Significant actual and potential negative environmental impacts identified in the supply chain and measures taken

27

7 and 812

Environmental

SUSTAINABILITY REPORT 2015 & 2016
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profile67

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responsibility and efficiency
in the value chain

environmental
performanceengagedpeopleadjacent
information

GRI
index

credits

GRI index
Ref.

Description

Direct response or page indication

Global Compact

SDG

6

5 and 8Social: Labor Practices and Decent Work
LA1

Total and rates of new hires of employees and turnover by age group, genderand region

47

LA5

Percentage of workforce represented in formal health and safety committees,consisting of employees from different hierarchical levels, which help monitor
and orientate health and safety programs at work

52

8

LA6

Rates of injury, occupational illnesses, days away, absenteeism and work-related
fatalities by region and gender

53

3

LA8

Themes related to health and safety covered by formal agreements with unions

53

LA9

Average hours of training per year per employee, broken down by gender and job
category

50 and 61

4, 5 and 8

LA10

Competence and continuous learning management programs that support thecontinued employability of employees in preparation for retirement

We offer different training options for our employees, however, none of them is focused on preparing for retirement

8

LA11

Percentage of employees receiving regular performance and career development
analysis, broken down by gender and job category

51

5 and 8LA14Percentage of new suppliers selected based on criteria relating to labor practices

27

1, 2, 4 and 5

8 and 16

LA15Real significant negative and potential impacts for labor practices in the supply
chain and measures taken in this regard

27

1, 2, 4 and 5

8 and 16

1, 2, 4 and 5

8 and 16

1, 2, 4 and 5

8 and 163

3 and 8Social: Human Rights
HR5

Operations identified as having significant risk for incidents of child labor, andmeasures taken to contribute to eliminating child labor

We have no reports on child, forced, or slave-like labor in our direct supply chain. In 2015, we disassembled one of our compressors
with the aim of analyzing the possible materials used that could contain raw materials known as 3TG (Tungsten, Tantalum, Tin, andGold), which have a high risk of being sourced from the Democratic Republic of the Congo and neighboring countries, known as the
Conflict Mineral Zone, and which uses child, forced, or slave-like labor for extraction.
After identifying that no direct suppliers have any facilities located in these regions, we forwarded a survey to our suppliers to specify
materials that they use in producing components supplied to Embraco, with the intent to map them so that there are no materials
sourced from there in the second link of the chain.
Of the 145 suppliers analyzed in 2015, 46 were rated as High Risk of purchasing materials from the Conflict Mineral Zone. The survey
for 2016 is still ongoing and the new supplier base rating should be ready by 2017.

HR6

Operations identified as having significant risk for incidents of forced orslave labor and measures taken to contribute to the elimination of forced
or slave-like labor

HR10

Percentage of new suppliers selected based on criteria relating to human rights

27

1, 2, 4 and 5

8 and 16

HR11

Real significant negative and potential impacts on human rights in the supply
chain and measures taken in this regard

26 and 27

1, 2, 4 and 5

8 and 16

SUSTAINABILITY REPORT 2015 & 2016
content

message fromleadershipprofileinnovation forsustainability

68

responsibility and efficiency
in the value chain

environmental
performanceengagedpeopleadjacent
information

GRI
index

credits
credits

CREDITSGRI G4-31
General Coordination
Embraco – Corporate Communication & Sustainability
Writing, GRI Consulting, Translation, Review Layout,
and Production
RICCA RI
Photos
Embraco Archive
Embraco Corporate Communication & Sustainability
Rua Rui Barbosa, 1.020, caixa postal 91
CEP: 89219-901
Joinville – Santa Catarina, Brasil.
If there are questions, suggestions or comments about
the content of the report, contact us by e-mailcorporate.communication@embraco.com.