2012
Sustainability
ReportSustainability
Report 2012

Summary
Message fromthe president 2
Who we are 4
How we understandsustainability 10
Management
and Strategy 14
Corporate Governance 16

How we manufacture
our products 19
Research and innovation 20
Manufacturing process 27
Supplier parternship 31
Customers 34
Post-consumption 37

People who make
Embraco 39
Private social
investment 45
GRI Content 52

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A bridge tothe future
The year 2012 was marked by significant
challenges. The macroeconomic scenario remained
unstable due to the impacts of the crisis thatbegan in 2008. However, if the economic agenda
challenged political and business leaders, socialenvironmental discussions also gained relevance.
Twenty years after ECO-92, Brazil was, once
again, host of an important global meeting: Rio+20.
More than 30,000 people - including heads ofState and representatives from 100 countries participated in discussions on how to maintainhuman, social and economic development that is,at the same time, sustainable.
We also engaged in this debate. Besides
participating in the event, we adhered to
Sustainable Energy for All, a United Nations
initiative that aims to ensure universal access tosustainable energy, as well as doubling the energy

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efficiency rate and renewable energy percentage
in the global energy matrix by 2030. Since 2004,
we have also been signatories of the UN’s Global
Compact, which mobilizes companies to align theirstrategies with ten principles in the areas of humanrights, labor, environment and anti-corruption. Every
year, we reaffirm this commitment.
We know that our business can contribute
positively to global efforts in reducing electricalenergy consumption. In over 40 years of existence,
Embraco has always guided itself by innovation andtechnology leadership, focus on the customer andpursuit of operational excellence.
In 2012, we reinforced one important triad forour company, which is comprised of shareholders,customers and employees. Shareholders invest in
the organization, and therefore we need to ensure
an attractive return for them. We also managed todeepen the relationship with our customers whichis expressed in the special care taken with the
product we deliver to the market. The third point ispeople. We understand that this triad can only besustained if we invest in valuing the professionals
who work with us.

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private social
investment“Our commitment to innovation
challenges us to always think of tomorrow,building a bridge to the future.”— Roberto H. Campos, President of Embraco

Bold goal
Our commitment to sustainability has driven us
to move forward in contributing to a more conscious
world. And, in our business, we do this in three ways:
in the production process, in the value chain and inoffering products with less environmental impact.
In our production process, we seek to reduceenergy and water consumption and waste generation.
In 2012, we established a bold goal: to not send waste
to landfills by the end of 2015. We completed thegreenhouse gas emissions inventory of all our units,
following the GHG Protocol methodology. In China,
we launched compressors smaller than conventional
ones and more efficient in terms of energy. In Mexico,

we inaugurated a plant that follows Green Building
principles, designed to reduce energy and water
consumption and waste generation.
In our value chain, we influence our partners
through the Supplier Excellence program. In postconsumption, we have the Top Green Program, which
recycles compressors at the end of their useful life.
Finally, our social investment policy has contributed
towards advances in the countries where our units arelocated.
We’re a company that was born in Brazil and today
has operations on four continents and customers inover 80 countries. We’re aware of our responsibilities
to our stakeholders, especially the communities in

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which we are part of. In 2012, the Embraco Ecology
Award - environmental education program conducted in
Brazil - turned 20. This experience shows us that a longstanding social project requires, besides commitment, astrong alliance between the private sector and society.
Our products contribute to sustainability because
they allow the end consumer to use less electricalenergy, preserve their food longer and have quieter
refrigerators.
Embraco has a history of commitment anddedication to innovation that enables us to deliver
to society what we do best: the cold that allows
people, in all corners of the world, to live a morejoyful, comfortable and healthy life, celebrating life.
This mission can only become a reality through theengagement of our teams, which, even located indifferent parts of the world - North America, Europe andAsia - share the same passions: cold and the future.
This is what unites us. Our commitment to innovation
challenges us to always think of tomorrow, building abridge to the future. All this is what makes Embraco aunique company.
Roberto H. Campos
President of Embraco

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5

Cold is ourbusiness
Have you ever wondered how your life
would be without refrigeration? If we didn’t
have the compressor, responsible for producing
cold in refrigerators and refrigerated counters,for example, we wouldn’t be able to keep foods
and drinks preserved and fresh.
We know that life with refrigeration
is more comfortable, healthier and more
dynamic. We see cold as a vital energy thatis present in most essential products in our
day to day, and that not only transforms, but
makes our lives gain a new meaning (seeinfographic on page 09).
We’re recognized for the quality of ourcompressors. But we also know that just as
important as producing cold with quality
is how we do this: we invest in compact
products that consume less raw materials andenergy. In this way, we reduce impacts on theenvironment and ensure that our customers
have the products that meet their needs.
We engage our suppliers so that they

We’re global market
leaders in hermetic
compressors* forrefrigeration. The
achieved position isa result of delivering
intelligent solutions
and investing
in innovation,technology andpeople development.

* In this model, the equipment is fully enclosed
by a sealed metal casing. Only a specialist can
open it and access components.

adopt practices aligned to sustainability and wemonitor our operations through water and energy
consumption as well as waste generation indicators.
Also, we follow trends and move quickly to bringthem to consumers. We also know our responsibility
to the communities in which we are part of.
Therefore, we’ve defined a global social investment

policy, focused on education and the environment.
Through it we develop actions and projects thatmeet the needs of the communities where we
operate.
These are the actions that reinforce our global
presence and technology vocation, allowing us todeliver the best refrigeration for your day to day.

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Global presence

EMBRACO IN NUMBERS(2012)

2

6
1

1,277 registered patents

5

7

42 years of history,

3completed in 2013
More than 40 R&D
laboratories

4

Globalpresence
More than 12,000 employees work in our factories
and offices. We’re present in seven countries, locatedon three continents. The physical structure consistsof two distribution centers and nine factories: five ofcompressors, one of components, two of electronics
and a foundry. From our units, products are distributed
to more than 80 countries.

1 Embraco United States
SuwanneWarehouse and sales office
2 Embraco Russia*
Moscow
Warehouse and sales office* Inaugurated in May 2013
3 Embraco Mexico
Apodaca, Monterrey
Compressor factory and office

4 Embraco Brazil
Joinville
Headquarters, office, compressor
factory, Foundry and Embraco
Electronics
Itaiópolis
Component and coolingsystems factory

5 Embraco China
Beijing
Office and compressor
factory
Qingdao
Embraco Electronics

6 Embraco Slovakia
Spisska Nova Ves
Office and compressor
factory
7 Embraco Italy
Riva Presso Chieri
Office and compressor
factoryMore than 30 thousandpeople benefited from
Embraco’s social investment
actions in Brazil, China, Italy,
United States, Mexico andSlovakia
More than 90% of suppliers
adhered to the Code of

Conduct

3% to 4% of annual revenue
invested in research anddevelopmentmessage fromthe president

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1990

Time line

Focus on international
expansion• Operations in Italy begin• Industrial joint venture in China is created• Operations in Slovakia begin

Our story began in 1971, the year that Embraco wasfounded, in the city of Joinville, Santa Catarina (Brazil),where the headquarters are located. Beginning in 2006, thecompany, which had open capital, underwent a corporate
reorganization and merged with the household appliancemanufacturer Multibrás. The partnership created, in Brazil,
Whirlpool SA, controlled by North American Whirlpool
Corporation. Even being a subsidiary, we maintain ourmanagement independently. For this, we have a strong
shield policy which ensures information confidentiality,
protecting our customers and partners.

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2010

Technology leadership• Refinement of sustainability strategy
in the company• Operations in Mexico begin• Launch of Embraco’s new brand• Embraco Russia inauguration

Learn more about our main achievements ineach decade.

2000

1970
The beginning• Founding of Empresa Brasileira deCompressores S.A (Embraco)• Production exports begins

1980

Research and innovation
consolidation• First technical cooperationagreement with Federal Universityof Santa Catarina (UFSC)• Development of proprietary
technologies begins• Embraco United States inauguration• Foundry inauguration

Commitments andopportunities• Sustainability becomes one of ourstrategic pillars• Embraco receives international
certifications, such as ISO 14001 and
QC 080.000• Company signs UN Global Compact• Begins operating in Brazil with thecorporate name Whirlpool S.A.
• Electronics unit inauguration(Brazil and China)• China factory inauguration• New Business area begins

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Embraco Slovakia
team receives
Responsible Large
Company 2012
award.

Awards andrecognitions
2012• Recognized as one of the 21 most sustainable companies in Brazil by Exame Sustainability Guide.
It’s the second consecutive time Embraco has received this award.
•V oted one of the Best Companies to Work for in
Brazil, according to Você S/A magazine’s guide.
Embraco ranked first in Various Industry Sector andwas highlighted in Best Leadership Practices.
• Support Foundation for Research and Innovationin the State of Santa Catarina (Fapesc) granted
Embraco first place in the Stemmer Innovation Award in the category Innovative Companyof Large and Medium Size. The cases submitted
presented three products that sought solutions tosize reduction and energy efficiency.
• In 2012, Embraco was classified for the state levelof SESI Quality in Work Award. Sesi’s initiative
aims to strengthen social responsibility andrecognize best practices in life quality at work. The

people who
make Embraco

award was recognition for the Embraco Volunteer
Program (Prove).

2013• Embraco Slovakia won the award Responsible Large Company 2012, granted by the Pontis Foundation through the Corporate Social Responsibility(CSR) National Award Program Via Bona Slovakia. It
was also recognized with first place in the Supporterof Volunteering and Good Partner for Community
categories.
•E mbraco United States received honorable mention
in the contest Metro Atlanta’s Top 100 Workplaces. The Journal-Constitution and its partner Workplace Dynamics surveyed 184 companies. The North
American unit was also voted one of the best companies to work for (Atlanta’s Best and Brightest
Companies to Work For) by the National Association for Business Resources (NABR).

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Embraco business
We’re world leaders in producing hermetic* compressors for refrigeration. They’rethe heart of refrigerators, freezers, wine cellars and other equipment responsible forpreserving food and keeping drinks at the ideal temperature. Compressors, together withthe cooling system, generate cold.
Our products are part of everyone’s daily life, in homes as well as in industry andcommerce. Through them, we guarantee that life will be more comfortable and havemore quality. You may not realize it, but cold is present in important life moments,from the simplest meal to a memorable celebration among friends and family. See
below some of the main applications of our compressors.

In commerce
The compressor can be found in many sections of
the supermarket: in the freezer that keeps foodchilled and exposed to consumers, the refrigerated
islands in the center of the aisles that hold frozen
foods and in the bakery’s showcases that conserve
cakes and sweets. In commerce, vertical andhorizontal freezers ensure the ideal temperature ofdrinks, ice cream and frozen foods.

In celebrations
Who doesn’t like to enjoy a wine servedat the right temperature? Our products
are in wine cellars, which help maintainthe temperature of beverages such as
wine perfect for drinking. Additionally, thefood served at dinners and parties is also
conserved through the compressor.

At lunchtime

In the morning
The refrigerator’s cold allows food conservation
important for a good breakfast, keeping milk, eggs
and butter fresh. Refrigerated drinking fountains
provide chilled water and are essential for theregions where it’s hot all year round.

Refrigeration is essential in professional
kitchens of restaurants. The compressor is usedin freezers and medium and large refrigerators,
refrigerated drawers and the buffet tables
themselves used for self-service. In convenience
stores, companies and universities, thecompressor is present in equipment that sells
soft drinks, juices, water and ice cream.

* In this model, the equipment is fully enclosed by a sealed metal
casing. Only a specialist can open it and access components.

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who
we areOurstrategy
For us, sustainability is a dynamic journeythat challenges us constantly. It serves as aninspiration to our daily practices and guides us in
making decisions and in managing our business.
We believe in the power of change and thestrength of our example.
Delivering the benefit of refrigeration involves
complex management of all phases present in our
production process, from designing the product,
managing our supply chain, training our teams
and environmental commitment to participatingin the community where we operate and the caretaken with our products’ post-consumption.
In 2012, we initiated a review of oursustainability strategy. As a result of this process,we created in 2013, the Sustainability Council,

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11“Sustainability guides our businessand our actions as a global company.”— Ursula Angeli, VP of Human Resources, EHS,

Communication and Sustainability

which aims to discuss the company’s long term
strategy. The council meets every two months
and is composed of our president, Roberto
Campos, the vice president of Human Resources,
Communication, Sustainability and EHS, Ursula
Angeli, and the board. Its coordination is shared
among the corporate areas of Sustainability,
EHS and Strategic Planning. Furthermore, we
also strengthened our directives, focusing on thefollowing aspects:• Sustainable products Innovation playsa central role in our Sustainability strategy.
Within this context, our products’ energy
efficiency is a key aspect. We invest in
developing innovative solutions and in
reducing the use of raw materials;• Engagement of people We have aprivate social investment policy that guides
us to permanently apply resources in thecommunities in which we operate, througheducational and environmental projects;• Sustainable value chain Our
sustainability view extends to our value
chain, from supply to post-consumption.
In the supply chain, we work in partnershipwith our suppliers to incorporate into their
daily practices sustainability requirements,
promoting joint work on finding solutions.
In post-consumption, we have a reverse
compressor logistics program, ensuring the
product’s recycling after its disposal by the
final consumer.

*EHS – in english, Environment, Heallthand Safety”

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Ideas thatinspireSustainable Energy for All
In 2012, we became the first company basedin Brazil to sign the Sustainable Energy for All
global commitment. It’s a United Nations initiative,
launched in 2011, which aims to ensure universal
access to energy, increase global energy efficiency
and increase the share of renewable sources in theenergy matrix. To this end, it promotes mobilizationof governments, business people and civil society.
The goal is to double energy production fromrenewable sources by 2030.

Global Compact
For 10 years we’ve been signatories to theUN’s Global Compact. The initiative aims toengage the business community in adoptingcore and international values that include
human rights, labor relations, environment andanti-corruption. In 2012, we strengthened ourcommitment to the program by joining the Global
Compact’s Letter of Commitment. The signingwas done during Rio+20.

Aware thatsustainable
development requires
broad engagementof society’s various
sectors, we joinexternal initiatives
that drive effective
change.

Rio+20We participated in the panel on energy that’s
part of the Corporate Sustainability Forum’s
schedule, the main event held for companies
during Rio+20. We were also chosen to participate
in a debate on sustainable development witha select international group, formed by 50
executives and opinion makers. In the meeting,
we discussed how the private sector can develop
an objective and clear action plan for the next
five years. The event was named Brazil Dialogue Building a Roadmap for Sustainable Development.

 ilver Medal in BrazilianS
GHG Protocol
Embraco received in 2012, silver medalclassification - which certifies inventory of
all direct and indirect emissions arising fromelectrical energy consumption – in the GHG
Protocol Brazil, an important classification,
which demonstrates that Embraco is concernedwith its greenhouse gas emissions (GHG). The

GHG Protocol is a methodology that permits
accounting for GHG emissions. In 2012, we
conducted an inventory for 2011, with emissions
from Italy, Slovakia and Mexico along with Brazilian
plants (Itaiópolis, Foundry and Headquarters), and,in 2013, we published the global inventory relating
to 2012 (more information in GRI Content, EN16
indicator, on pg. 60).

Letter of Commitment for Sustainable
Solid Waste Management
We signed the document on World Environment
Day, on June 5, 2013. Embraco’s initiative on signing
the Ethos Institute document seeks to strengthen
the private sector’s commitment to sustainable
development and implementation of the National
Policy on Solid Waste. The commitment is inserted
in Embraco’s sustainability strategy, which, amongits global goals, aims to send zero waste to landfills
by 2015 (more information in GRI Content chapter,
EN22 indicator, on pg. 61).

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OUR
CERTIFICATIONS
ISO 9001(quality)ZERO WASTE
Waste management is part of our sustainability
strategy and permeates the value chain, including
suppliers, production and post-consumption. Today,
approximately 96% of the wastes we generate
globally in our compressor factories are recycled.
Among our global goals, we have the challengeof sending zero waste to landfills by the endof 2015. In Brazil, for example, we’ve modified
procedures, revitalized the structure of selective
collection and developed actions such as recycling
garden, construction and powder paint wastes.

Waste management is also present in our
Supplier Excellence Program, which promotes
waste reduction in the supply chain. In 2012, we
encouraged a supplier to send its rubber waste
for recycling, avoiding disposal of 22 tons tolandfills. In 2013, nearly 100 tons were recycled.
In post-consumption, the Top Green Program
collected and recycled compressors discarded by
end users. In 2012, 500,000 units were recycled,
equivalent to more than 4,000 tons of steel and
1,300 tons of iron.

Foundry (Joinville), Brazil Compressors(Joinville), Brazil Components and Cooling
Systems (Itaiópolis), Brazil Electronics,
China Electronics (Qingdao), China
Compressors (Beijing), Slovakia, Italy
and Mexico.

OHSAS 18001
(occupational health and safety
management system)

Foundry (Joinville), Brazil Compressors(Joinville), Brazil Components andCooling Systems (Itaiópolis), Brazil
Electronics, China Electronics (Qingdao),
China Compressors (Beijing), Slovakia
and Italy.

ISO 14001(Environmental Management System)

Foundry (Joinville), Brazil
Compressors (Joinville), Brazil
Components and Cooling Systems(Itaiópolis), Brazil Electronics,
China Electronics (Qingdao), China
Compressors (Beijing), Slovakia and Italy.

IECQ QC 080.000
(hazardous substance environmental
management) and RoHS (Restriction ofHazardous Substances)

Foundry (Joinville), Brazil Compressors(Joinville), Brazil Components andCooling Systems (Itaiópolis), Brazil
Electronics, China Electronics (Qingdao),
China Compressors (Beijing) and Slovakia.

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who
we areEfficiency inoperations
Our strategic planning has helped us becomea more efficient, agile and global company.
Through the Embraco Management Model –Embraco Way of Management (EWM) –, we’vecreated a path for all of our units and we share
our best practices. The global synergy enables
us to improve the results we deliver to ourstakeholders and build a common language, which
is materialized in global processes.
To evaluate application of our management
model in the units, since 1992, we’ve conducted
an annual learning cycle. Until 2012, the approach
focused on interviews in the areas and used
only National Quality Award (NQA) criteria as areference. Starting in 2013, it began being done
through an audit process, which also considers
requirements developed by Embraco itself,
without losing connection with market practices,translated in NQA.

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GRI
content“Embraco’s management model defines ourcommon language. It’s the way we choose tooperate daily and ensure delivery of results,
maintaining synergy among our units.”— Janaína Weiss, Director of Corporate Management Model

The management model was redesigned in2009. Since then, several initiatives have beencreated to internalize the EWM concept. As an
example, we have the Leadership Academy, along-term global development program designed
for leaders, managers, directors and vicepresidents. One of its modules provides specifictraining on the discipline in execution concept.
As for factory employees, an internal team,acting as an EWM multiplier, shares knowledge.
Development and deployment of our strategy
are part of our Management Model.

To align, communicate and share our goals,
we organize events such as the Annual
Leadership Meeting and Strategic Dialogues,
which have the participation of directors whoare part of the company’s staff.
We’ve developed our goals based on businessprospects considering the shareholder, themarket, our processes, people and strategy. KPIs
(key performance indicators) relevant to eachof these perspectives are defined, which aresystematically monitored, to ensure achieving
the results.

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who
we areCorporate
Governance
The governance structure’s highest authority
is the president’s staff. It consists of nine
members, including the president, five vicepresidents and three directors (Logistics, Legaland Procurement). The group meets weekly
and is responsible for monitoring executionof the company’s strategy and for making key
decisions in Embraco’s economic, environmental
and social aspects. It also ensures that results
are delivered to shareholders in accordance withestablished goals. Through quarterly reviews,

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GlobalLeadership
Meeting heldin 2012.

the committee monitors performance of theorganization and executives.
Another important staff function is defining
what risks will be monitored from Enterprise
Risk Management (ERM) methodology. The work
includes executing action plans and defining
those responsible for monitoring. Another ERM
objective is to identify business opportunities.

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Our principles
MISSION
Offer innovative
solutions for a better
quality of life.
New organizational structure
We promoted, throughout 2012, some changes
in the organizational structure, which, currently, has
five vice presidents: Research and Development;
Operations; Business and Marketing; Finance, IT
and Strategic Planning; Human Resources, EHS,
Communication and Sustainability.
Last year, the following changes occurred inleadership positions:• Embraco’s presidency was assumed byRoberto H. Campos, who had occupied theVice-Presidency of Business and Marketingalong with Electronics. The executive
replaced João Carlos Brega, who is now
responsible for the Presidency of Whirlpool
Latin America;• t he sustainability area, which included theVice Presidency of Operations, became partof the newly created Vice Presidency of
Human Resources, EHS, Communication andSustainability. Ursula Angeli is the current
vice president;• t he Vice Presidency of Research &Development was reformulated, wasrenamed Vice-Presidency of Research& Development & Innovation, and who
assumed the area was Lainor Driessen. He
also took on the post of Vice President of
Operations;• Mário Ussyk continues as Vice President of
Quality, Lean & Assets and now also leads
the Mexico Project - Phase II.

VALUES• Diversity withinclusion• Spirit of winning• Integrity• Respect• Teamwork

PILLARS
Technology
leadership andinnovation

Operational
excellence

Revenue growthand value creation

PeopleSustainability

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Sustainability is
one of Embraco’s
strategic pillars.

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Transparency and ethics

Our leadershipparticipates intraining during the
Global Leadership
Meeting which took
place in 2012.

We’ve adopted international management
and corporate governance standards. We adhere
to the requirements of the Sarbanes-Oxley(SOX) North American law, created to reduce therisk of financial fraud and adopted, mainly, bycompanies whose shares are listed on the stock
exchange. We also conduct internal audits toassess the internal control environment.
Our principles and values are brought
together in Whirlpool Corporation’s Codeof Ethics and Global Policies, Letter ofOrganizational Values and Code of Conduct.
All employees have access to these directives,and more than 90% of direct suppliers
distributed throughout the Americas, Europe
and Asia signed the document, which has
guidelines on the companies’ posture in
relation to social-environmental issues.
The Ethics Committee meets regularly andis responsible for monitoring compliance of thecode and maintenance of all communication
channels for requests or complaints.
Complaints can be made directly in the Legaland Human Resources departments. Alsoa specific line (hotline) is available, whichguarantees anonymity (more information in GRI
Content chapter, EN22 indicator, on pg. 68).

SUSTAINABILITYSTRUCTURE
The structure is composed of the Vice Presidentof Sustainability (Ursula Angeli), who also answers
for the areas of Human Resources, Communication,
Environment, Health and Safety. Below the VP, arethe director of Sustainability and Communication(Rosângela Coelho) and Corporate Sustainability
Manager (Annelise Vendramini), who coordinates the
local Sustainability teams in each country where wehave operations. The area’s mission is to manage
corporate social responsibility, in order to integratesustainability into Embraco’s strategic pillars andpromote engagement of the various stakeholders.

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How we manufacture
our products

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private social
investment↳ research and → manufacturing → supplierinnovation
process
parternshipResearch
and innovation

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21→ costumer → post-consumption“To develop products withless environmental impact and obtain more
efficiency in costs and industrial processes,
we’ve invested in various solutions thatcombine innovation with sustainability. For
this, two workstreams are essential: closeinteraction with academia and regularsurveys with large customers.”— Fábio Klein, director of Technology & Innovation

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who
we areProducts
more efficientInnovation and technology are
fundamental to our business. Therefore,
we invest 3% to 4% of annual revenue in
Research & Development (R&D). Commitment
to develop innovative solutions involves,necessarily, recognizing our teams’ talentand valuing diversity. Our researchers havecompensation compatible to employees
who hold administrative positions - people
management model called Y career. This
strategy ensures that our professionals
have opportunities in areas related to theirexpertise.
As an example of our ongoing investment
in research and development, we’ve createda device called Control Board. The electronic

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parternshipboard was made in 2012, through the joint
efforts of our Electronics units from Brazil
and China. The equipment concentrates in asingle board the inverter’s performance (which
controls the compressor) and the thermostat(which controls the refrigeration appliance).
Until then, two boards were needed to control
these two parts of the cooling system.

Energy efficiency
This is our main attribute in productdevelopment. Our compressors allow the
refrigeration unit to produce the cold required
to preserve food, but using the smallest
possible measure of energy.
When we think of energy efficiency, one of
our highlights is variable speed technology(VCC), which we call Fullmotion. With it, thecompressor runs with less speed oscillation andhas its performance optimized. This generates
great electrical energy savings, and permits it
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who
we arecompressor works harder and, if empty, works
less. Thanks to Fullmotion technology - present inproducts such as refrigerators and freezers – it’s
possible to save up to 40% on the electricity bill.
We also prioritize technologies that reducegreenhouse gas emissions, which harm theplanet. We follow the guideline of adhering eachtime more to using natural refrigerants. Naturalrefrigerants’ great advantage is low Greenhouse
Warming Potential (GWP), measurement that
expresses the contribution to global warming.
At the same time, we remain aligned to newlegislation on the subject.
Among the solutions adopted is therefrigerant gas R290 (propane), recognized by
the European and Asian markets for providing
very low impact on the ozone layer. Use of thetechnology gained further support beginning in
2011, when the gas was approved in the UnitedStates. One of the most common applications isin vending machines, for selling soft drinks.
Over the years, we’ve also reduced the useof raw materials. Our products, which alreadyweighed 7.2 kilos, now weigh about 5.8 kilos.
This means that we’re producing smaller, lighter
compressors with less material consumption.

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parternshipResearch anddevelopment centers
Approximately 500
employees work in the studyof new solutions in thefive units in which we haveoperations.

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Embraco representatives
attend the Polo (UFSC)
laboratory’s 30 year
commemoration.
The university was
the company’s firstpartnership witheducational institutions.

Knowledge generation
We believe that one of the most efficient
ways to develop new technologies is to establish
partnerships with private companies, universities,
research centers and government. We were
pioneers in establishing a partnership with theFederal University of Santa Catarina (UFSC)- alliance that, in 2012, completed 30 years.
The Refrigeration and Thermophysics ResearchLaboratory (Polo), of the University’s MechanicalEngineering department, was built with oursponsorship.
We also participate in co-development
projects with our customers. In some cases, welend our laboratories so that companies can use
the equipment and make the necessary tests on
their products.
Partnerships related to innovation are
included in our strategy of being a global
company. We develop projects with governments,
companies and research institutions in Brazil, theUnited States, Mexico, China and Germany.

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EMBRACOINNOVATION
AWARD
Two hundred million refrigeration equipment. This
is China’s reality, which received, in 2011, our firstinnovation award, the Embraco Innovation Award. The
idea is to encourage students and researchers to develop
refrigeration solutions with high energy efficiency.
In the awards’ second edition, in 2012, we received
57 projects from students and refrigeration market
professionals. All were analyzed by a team of over
30 members, for innovation and originality; socialenvironmental impact; marketing and application for themarket; technical quality; and energy efficiency.
In addition to having a winner in each category, we
created the Innovation Fund Award, in which funds will
be divided among the next year’s six best projects. The
goal is to apply the money in developing prototypes or
improving research.

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LESS ENERGY,GREATER WINEQUALITYNEW SOLUTIONSIn 2012, globally, 45 Embraco
solution protections were made.
Among them are 39 applications
for invention, two utility models andfour industrial designs. These areideas that will soon be converted intoeven more efficient and sustainableproducts than those offered today.

In 2012, we developed an innovative solution
in partnership with the company Art des Caves,a leader of acclimatized wine cellars in Brazil.
Our research investment resulted in producing acompressor when, placed in a wine cellar, allows
a 30% reduction in energy consumption. The
technology enables that the optimum temperature
be reached with 25% more speed, remaining stable
and with constant humidity.
Besides quiet, the compressor rotates at alower frequency, and this helps reduce vibration,
preventing the bottles from being shaken, which
can compromise the wine’s quality.

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parternshipportfOlioOur VES productplatform
Every day, we work to optimize coolingsolutions for our customers andconsumers, seeking to integrate new
innovation and technology concepts.
That’s how the VES product platform
came about, which was developed with
Fullmotion variable capacity technology
for household applications, today
produced in the China unit.
To develop the platform, we improved
the products that we already had,
without losing their functionality, withmaterial consumption reduction, noiselevel reduction and energy efficiency gain,
adding value to our products. Moreover,the variable capacity technology makes
the VES line operate at a high speed,so the refrigerator reaches the desired
temperature more quickly. This ensuresbetter preservation of the stored food,plus optimizes the refrigerator’s internal
temperature control.
This means less noise in your refrigerator,
lower electricity bill and less food waste.

Noise• Two decibels quieter*• New design, which eliminates noises
Efficiency• 4% increase in energy efficiency*• Minimum speed to reach 1,200 rpm
Vibration• 25% less*• Optimized suspension*If compared to the VEM family, which preceded VES development.

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“We believe that
self lubricating steel
will revolutionize
the way to think
about mechanicalengineering, because
all the systems
that need somelubrication to avoid
friction can use ourtechnology andeliminate the use ofoil. It’s a sustainable
alternative, which
will have great
application potential,
especially in theautomotive industry.”— Marcos Fábio Lima,

Embraco’s director of New
Businessmessage fromthe president

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parternshipSelf-lubricating steel
Recently, we launched a high-strength steel withlubricating potential. The solution was developedby means of powder metallurgy – combining
powdered iron and carbon, sintered with solid
lubricants. The metal composition causes lubricating
to occur throughout the part’s entire useful life. In
2012, pilot batches began being sent to industries
and customers. Our goal is that in two years, thetechnology is manufactured in large scale for themarket. The solution benefits mainly the metalmechanical industry, like the automotive segment.
It increases productivity and reduces environmental
impact in production lines.

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ECO-EFFICIENCY IN THE
AUTOMOTIVE INDUSTRY
Plasma technology has been researched by
Embraco, in partnership with the Federal Universityof Santa Catarina (UFSC), since 1992. It’s also
applied in plasma reactor production - equipmentused in the automotive industry to coat metal
mechanical parts with layers of durable andanticorrosive material. The coating using plasma
technology is faster, requires a smaller amountof chemical products, doesn’t emit greenhousegases and complies with ISO 14000 - international

standard that establishes a set of environmental
management guidelines. Since the technology
was created, we’ve made several advances. Our
newest plasma reactor model has a dual function:
while the part is coated, it’s also cleaned, making
the production cycle more efficient and eliminating
waste generation. Furthermore, it brings ecoefficiency gains in the process. With one less stepin manufacturing the part, it’s possible to reduceenergy and water consumption.

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Standardizing
processes
We believe in the importance of working
from a single model, integrated into all units
and countries where we operate. So, since 2011
we’ve been developing the Management Routine
project. Among the various ongoing actions is the
pursuit to standardize procedures, activities andindicators that measure our results.
Project implementation - expected to becompleted in 2014 - has an impact on six
management systems: ELS System (Embraco
Lean System), EQS (Embraco Quality System),
EHS System (Environment, Health and Safety
System) and Productivity for Growth (P4G, Cost
Reduction System). We also began working

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DO MOREWITH LESS
with Document Management System (DMS)software, which makes it possible to interface
with documents from all plants. Standardization
has the benefit of simplifying and organizing theroutine, gaining productivity and quality as well
as reducing accidents.
In 2012, we began a process of standardizing
the manufacturing processes using the Methods
Time Measurement (MTM) methodology. Using
this method allows deeper analysis of theoperations and increases the standardizationlevel. In 2012, the work involved Brazil unit’s
areas. The outlook is that the action be expanded
to other plants in 2013.

We work with a single
and integrated
model in all units
and countries
where we operate.

Lean Thinking philosophy guides our way of
thinking. The proposal is to make teams focusedon avoiding waste, eliminating rework andmaintaining the factories’ production adjusted toconsumption, without excess inventories.
Our concern extends to transport
rationalization. We’ve avoided unnecessary
movements and performed periodic equipment
maintenance so that we operate at full capacity.
In this way, we’ve improved our productivity
while at the same time reduced costs.

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Technology andenvironment
We manage our operations so that we canbecome a reference in environmental management.
Reducing the environmental impact involves
improving our production processes. Within ourfactories, we manage waste generation andrecycling as well as total consumption and that
relative to water and energy. Relative consumption
has as a reference our production volume. In otherwords, our environmental goals are a guideline forrational use of natural resources and waste control.
Monitoring our indicators counts on our
employees’ participation, who are engaged toachieve each time better results in the operations’eco-efficiency.
Embraco Mexico is our newest plant. Construction
was completed in 2011 and complied with, from the
beginning of the works, the green building concept.

The factory has a special energy consumption andwater temperature control system. All equipment
is highly energy efficient, and the structure wasprepared to reuse water. The main energy sourceis natural gas. The building has thermal insulationand values the use of natural light and ventilation,
reducing the need to use air conditioning.
Accessibility for people with disabilities is ensured byaccess ramps, elevators and wide accesses.

“We want
to advance sustainability
concepts at every productmanufacturing stage, fromthe compressors’ conception
to post-consumption.”— Lainor Driessen, VP of Operations and VP of Research and Development

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Carbon inventory
In 2012, we began to publish our greenhousegas emission results in the Brazil GHG Protocol,
a public database, elaborated by an internationalorganization, in partnership with Getulio Vargas
Foundation’s (FGV) Center for Sustainability
Studies and World Resources Institute (WRI). The
goal is to encourage companies to publish theirgreenhouse gas emission (GHG) inventories.

We reported 2011 emissions of our units in
Brazil, Slovakia and Italy. Therefore, our report
was classified as a silver medal of the Brazil GHG
Protocol. This means that we account for direct
greenhouse gas emissions in the production
process and indirect arising from electrical energy
consumption. In 2013, the inventory was extended
to Embraco’s other units, making it a global action(learn more in GRI Content chapter, EN16 indicator).

ITALY’S EXAMPLE
DIRECT IMPACTS
In 2012, we advanced in our operations’management. Among the highlights* are:• Energy consumption per compressor: -3%(direct energy) and -5% (indirect energy);• Waste generation per compressor: - 6%;• Volume of water reused: : 225,511 m³,
representing 31% of total consumption;• Energy saved through investments inmodernization and efficiency: 65,492 GJ.
*The above information pertains to the global results concerningcompressor production. Learn more in GRI Content chapter.

In Embraco’s Italian unit, goals to reduceenergy consumption have not only been met
but exceeded. Thanks to investments in ecoefficiency and infrastructure, since 2005
the total volume of energy consumed percompressor produced fell 58%.
In defining action plans, energy consumption
is correlated with the production volume.
Thus, despite the growth in the number ofcompressors produced by the Italian unit, theaverage consumption (which relates the amountof energy spent per compressor) has fallen
over the years. This shows that we can growand remain competitive while at the same time
control and reduce our environmental impact.
For the period between 2013 and 2015,
several projects are planned. The aim is to adopt
more energy-efficient equipment or replacethese machines for solar energy. The expectationis that we no longer consume over 2 million kWh
per year and no longer emit more than 1,200
tons of CO 2 equivalent.

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SUPPLIER
PARTNERSHIP

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innovation
process
parternship“Innovation is the key for us toovercome the current social-environmental
challenges. We’re the market leader in hermetic
compressors for refrigeration, seeking to guidethe sector for excellence in energy efficiency.
Our suppliers have the capacity for research anddevelopment and can contribute greatly so that
advances happen.”— André Vincent, Corporate Director of Materials

Continuous
Improvement
We’ve invested in a close relationship with our
suppliers to contribute to the transformation of thecompanies that are by our side. Since 2012, we’vebeen developing Embraco’s Supplier Excellence
Program. The goal is to improve our supply chain’s
performance in aspects related to service, quality,
costs and sustainability. Embraco’s first unit to
implement the program was Brazil.
From this experience, the work spread to Europe
and Asia. In 2012, the strategic processes wererevised to improve supply chain management
and integrate the areas that interface with these
suppliers and partner companies. As part of theprocesses, suppliers were prioritized in each region
to develop workshops. Over a period of three to five
weeks, a multidisciplinary team from Embraco joinsa partner supplier’s team and develops actions for
improvements, dividing the gains made at the endof the process.
There were 11 workshops – five in Brazil, four inSustainability
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More than 90% of
suppliers follow ourCode of Conduct.

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Europe and two in Asia. The main results were waste
reduction, product redesigns, lower environmental
risk, quality gain and greater delivery speed.
Integrating sustainability to the process wasconsidered a practice highlighted by Guia Exameaward in 2012. We were recognized as one of themost sustainable companies.

Guide for suppliers
The Supplier Code of Conduct guides ourpartners on which social-environmental criteria
will permeate the relationship with Embraco. The
document has already been signed by more than
90% of our suppliers around the world. We reinforce,
therefore, the guideline that an important premise
to contract a supplier requires passing throughacceptance of the Code of Conduct’s criteria, adocument that’s the base for supply chain trainings
and assessments. One of these evaluations is theSocial-Environmental Self-Assessment. Addressing
human rights, labor relations, environmental
management and subcontracting, the action wasdeveloped with direct materials suppliers in Brazil,
Europe and Asia.
In 2012, based on this self-assessment, we
defined the priority suppliers to develop andconduct trainings, visits and development meetings.

WASTE IS RAW
MATERIAL FORSYNTHETICGRASSThe Supplier Excellence Program has
already reaped important benefits. In 2012,
the work done with a partner, a producerof rubber products and precision gaskets,stood out. With the expectation of reducing
by up to 90% rubber waste sent to landfills,
a process was developed to recycle rubber
rejects, burrs and mats that were once
discarded in landfills. This material can now
be shredded and resold to manufacture
synthetic grass, widely used in soccer fields.

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BESIDE THEM
We’ve worked to strengthen the relationshipwith the companies with which we do business
and with our customers’ customers. For this, wedeveloped a series of actions aimed at this public.
Every year, we conduct a satisfaction survey
with customers in 33 countries. The survey
includes the household, commercial andreplacement markets. Based on this information,
we define the best service strategy.
Another highlight is our participation in
events and meetings. We were in four major
world business fairs, in China, the United Statesand Germany. The initiative contributed tostrengthening our presence in the global market.

We have customers
in over 80 countries.
To meet theirneeds, we seek tounderstand how
they perform theiractivities and quickly
offer the bestsolutions.

Communication channels
We receive questions, comments and othercustomer contacts via the link “Contact Us”
available on our site (www.embraco.com). Contact
is made by email. The channel was developed tomeet demands according to each public, suchas students, contractors and retailers. We also
maintain a fan page on Facebook (EmbracoBR)
and an account on Twitter (@embraco).

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Support to contractors
In 2012, we conducted trainings for morethan 1,800 technical contractors from various
countries. They’re responsible for installing our
products in equipment. We invest in qualifying these
professionals so that they’re able to provide better
service to Embraco’s product users. The work is done
through a partnership with our customers. A teamfrom Embraco goes to the company and conducts
the training with support materials, such as catalogs
and manuals. In other cases, the training is done in
our own facilities. The technical contractor plays a
key role in recommending our products to the final
customer and needs to understand in detail how
they should work.
For 30 years we’ve also produced a magazine
with content geared to contractors. The traditional
publication, which until 2012 was called Bola Preta
Magazine, was reformulated in 2013 and received thename Refrigeration Club.
The new magazine was formatted from anextensive study with the target public. First, we
conducted a survey with technicians, counter sales andretail owners to understand what their real needs are in

INFORMATIONWITHIN EASYREACH
the day to day. Then, we elaborated a differentiatededitorial, layout and visual identity project.
The result of this work is a clear and precise
publication, with appropriate guidelines forcontractors. The pages bring interviews, opinionsfrom recognized market professionals, technicalcontent and reports on courses, lectures, trade
fairs and sector books. Refrigeration Club
magazine is free, quarterly and began circulatingin 2013. It’s also available on the internet (www.
clubedarefrigeracao.com.br).

We’ve developed a Smartphone application
especially targeted at contractors - professionals
working with refrigeration equipment. The
Troubleshooting App is practical and easy to use andhelps technicians solve problems in compressors.
The application’s content displays a list of
possible mechanical and electrical equipment
failures, also indicating how to adjust them. In
addition to making repairs faster, the contractor’s
service gains quality. The Troubleshooting App iscompatible with Android and iOS operating systems.

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We collectcompressors
after use,
avoiding theimproper disposalof components
and waste.

REVERSELOGISTICS
The Top Green Program systematizes all our
actions related to the end of the products’ life
cycle. The main objective is that compressors
are collected after use, preventing components
and hazardous wastes from being discardedin common landfills. Since the program wascreated 12 years ago, more than 3 million usedcompressors have been collected and recycled.
Thanks to our investment in research, thatguides the choice of the best raw material to
be used in the production process, much of thecompressor can be recycled. The first step is toseparate each one of the components (copper,
aluminum, steel, iron, and oil). Currently, 99% of
the materials are processed and reused. Most of
the materials generated are directly reused in
the company’s production cycle. The surplus isforwarded to partner companies.

how we manufacture
our products

We operate inall stages of thecompressors’ life
cycle. Even after the
product is discarded,
our responsibility
continues.

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Top GREEN
Materials reused in 2012
Steel: 4,093,692 kilos
Iron: 1,330,450 kilos
Aluminum: 88,697 kilos
Copper: 559,471 kilos
Oil: 191,039 liters

547,321compressors were recycled
through the Top Green
program in 2012.

Recycled wood
Throughout the year, we
recycled and reused over
25% of wooden pallets
shipped to customers
in 2012. Therefore, weavoided consumption of
approximately 57 thousandreforestation trees andgeneration of 21 tons of CO2.

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who
we areOurteams’ value
Our people management policy prioritizes
valuing, developing and retaining talent. We
invest time, resources and research to bea global company.This positioning goes far
beyond having international operations. We
want that diversity be present in our day
to day and that our teams be comprised ofprofessionals from different nationalities,
genders, languages and cultures. That they
have different ways of seeing the world andthat they stimulate us to always innovate. Thisis a strong competitive differential.
This strategy is consolidated from themoment of attracting talent, either throughthe Trainee Program, Internship Program orhiring people with disabilities, or through theTalents of Diversity Program.
Our leadership training programs also playa key role for the business. We’re committed
to qualify inspiring leaders who engage the

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40“Where there is diversity of thought
it’s always a great challenge to make decisions
and do business. However, when these thoughts
do converge, the innovative power is much moreconsistent, because they see solutions from several
different lenses.”— Ursula Angeli, VP Human Resources, EHS, Communicationand Sustainability

entire team to follow our values and our visionof the world.
We also value the technical career,promoting salaries for researchers equivalent
to those of management positions, we offer
the Profit Sharing Program (PPR) and adopt
strict controls in factories to ensure the safetyof all our employees.

Health and safety
We matured the Behavior-Based Safety(BBS) program, being developed since 2011,
with the goal to train our employees toadopt safe behavior in their daily activities
in Embraco. The main tool for this stimulus
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We invest inprocess safety in
our plants andin training our
employees toprevent accidents.

Behavior-Based
Safety (BBS)
Program aims toencourage safe
behavior.

order to develop safer behaviors. On average,
each of our employees received 2.2 feedbacks
each month, in 2012, globally.
We also took an important step during theyear. In the program’s second phase - calledBBS Sustainability Project –coaching work
began, conducted by the leaders with theirteams, with the goal of continuously improving
the quality of conversations and feedbacks. In
2012, there were 2,223 coaching sessions in all
our plants.

To avoid accidents and increase safety of
our manufacturing processes, in 2012 a global
evaluation project of all installed machines
was initiated, in order to make processes
safer by identifying and executing necessary
improvements, as well as enabling exchangeof best practices among plants to solve
their problems. This project will continue in2013 and 2014. Corporate procedures werealso developed and/or revised, seeking tostandardize best practices in EHS management.

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YOUNG TALENT

Future leaders
Through our Trainee Program, we intensify thestrategy of being a global organization and create
conditions to attract and retain young professionals
focused on leadership. In 2012, we refined theprogram, which began prioritizing development of
new ideas, reflection about Embraco’s day to day
and consolidation of diversity in the company.
One of the most important practical changes
refers to the professional profile that we want to
attract. Far beyond technical knowledge, the trainee
should have competence to be a good leader.
Embraco Trainee goals have also been changed.
Instead of using the number of applications as anindicator of success, we drew up two long-termgoals: retain 60% of the trainees in the company
within five years and ensure that 100% of thetalents become leaders in a period of up to four
years. In 2012, eight trainees entered the programin Brazil, 14 in China and 14 in Slovakia.

FOCUS ON QUALITY
Looking to detect specific improvement
opportunities, we developed strategies such as Value
Stream Map, a biannual planning that describes
what can be changed in our units. From this survey,
managers convene teams to exchange ideas, inwhich actions are proposed that can improve ourroutine. The meetings are called kaizens. Since thework began in the company, 2,383 kaizens havebeen performed - with 421 just in 2012.
Another instrument that encourages collective
construction are the Quality Control Circles (QCC),
conducted for 15 years. Small groups meet,voluntarily, to discuss various topics, from simple
solutions - such as changes in lighting - to changes

in the compressors’ production process. Since the
QCC’s creation, Embraco has implemented morethan 8,000 projects and turned the initiative into anational reference. Currently, 2,957 employees workin 496 QCCs, which have already developed 4,326
projects. In 2012 alone, 12 QCC teams were formed.

One of those selectedin the last edition of the
Embraco Trainee Program
was advertising professional
Julia Antipoff, 25. She wasselected to work in the
Information Technology area,
implementing a corporate
collaboration network, Get
Connected.
For this, she did a diagnosisof the tool’s necessity
in several areas of thecompany, held benchmarks
and coordinated the pilot
project. “It was a very
good experience for mycareer. Through the Trainee
Program, I had contact withprofessionals from different
areas and perfected skills
such as leadership andteamwork”, she says.

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who
we areDiversity
Since 2005, the Talents of Diversity program
has developed people with disabilities (PWDs). In
the first year, along with working in their respective
areas, these people receive training courses.
Already 185 people have been through theprogram (39 in 2012 alone), and the hiring rate at
the end of the program is 70%. Currently, 5.2% of
our workforce is made up of people with disabilities.
The total number is 352 PWDs - among them,are physically disabled, hearing impaired, visually
impaired and intellectually disabled.
Since 2008, we’ve invested in the safety ofpeople with disabilities. The chemical laboratory
team, for example, adapted the location bypasting sign language stickers on countertops
and equipment. The messages contain warnings
about appropriate safety measures and procedures.
Currently, two hearing impaired employees workin the laboratory. This improvement is part of theaccessibility projects, which include installation oftactile floors in greater circulation areas, lowered
curbs, ramps, wider doors and elevator.
In 2012, we revised our Diversity Policy,
established in 2005, looking to broaden its scope.
Before, the focus was on social issues, and thepolicy was seen as a program model. Now, with
the new guideline, diversity permeates our entire

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Our Diversity
Policy wasreviewed toensure globalalignment on
the topic.

business, culture and relationships and is seen as amanagement model.This means more leadership
involvement and building a diverse environment,
accessible to all. We mapped our people
management processes to identify opportunities
for revision, adaptation and formalization ofprocedures and tools in order to increasingly alignour practices to our positioning.
Therefore, we created the document Diversity &Inclusion Management, which brings the goals andparameters that ensure global alignment on thesubject, strengthening our culture and supporting
the organization’s strategies. For 2013, thechallenge is to improve the view of diversity on thecompany’s management processes.

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We include ourpeople withdisabilities indifferent areas of
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INCENTIVE FORTEAMWORK
In 2012, we celebrated the 25th edition ofOliembraco, our internal Olympics. The games
feature 32 sport categories, female as well as
male, and, in addition to encouraging sports
activities, acts as an important integration
moment. The main goal, however, is to strengthen
Embraco’s values. Oliembraco reinforces theimportance of teamwork and is part of the actionsof organizational climate management. Last year,
5,516 athletes participated in the event - thelargest number in our history.
In parallel, we also organize Paraoliembraco,
geared towards people with disabilities. In thissixth edition, 150 people participated - almost
double from the previous year. Competitors

participated in sports such as pool, table tennis,
dominoes, deaf futsal and athletics.
Osmarino Huzar’s worked for 10 years
as a technician in the Foundry and collectsOliembraco medals. He makes a point to sign
up in different modalities. He competes fromthe more traditional sports such as soccer,
volleyball and cycling, to tournaments such as
truco and canasta. “We’re really encouraged
by our supervisors and by all leaders to takepart in Oliembraco. It’s a great event for us”,
he says. Although not an Embraco employee,
his wife, Vanessa Machado Schatzmann, also
joins the fight for the medals, and daughter Laís
accompanies her parents the whole time.

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English Acceleration Program

MOTHERS
CLOSE TO THEIR
CHILDREN

Language expertise is essential for the workroutine of various employees. For this, in 2012,
we invited 30 high-performance professionals toparticipate in a new English study format. Per week,
each student does two 1.5 hour presential classes(which count as time worked), participates in two
15-minute phone conversations with the teacher
and completes an extracurricular activity. Once amonth, the group takes part in an immersion witheight-hours of classes, always on Saturdays.
We sponsor 70% of the costs, and theemployee, 30%. Who improves their performancein Toeic (proficiency exam) and has the required
minimum attendance receives full reimbursementof the amount invested. In the first year, 70% of
students progressed in the evaluation. From 2013
on, the project should be expanded to all othercompany plants.

To give special attention toemployees who are mothers,
we have various benefits.
We’re part of the Brazilian
federal government program
Citizen Company, which
extends maternity leavefrom 120 to 180 days. In
the Joinville unit, we also
maintain a nursery inside
the factory, which can beused by mothers and fathers(if there are openings) until
the child is one year andthree months old.

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In all countries
where we operate,
our employees
are encouraged
to participate involunteer work.

Local
development
We’re willing to transform realities. Therefore,
we look to build strong and lasting relationships
with our partners, so that they achieve the best
results. In 2012, we planned and executed social
projects, contemplating ideas that, in some way,
improve people’s lives.
Among these actions, are the traditional
Embraco Ecology Award and also unprecedented
initiatives, such as the Olympics for Children,
in Slovakia. In Europe, we began a permanent
campaign for blood donation. As a global company,
we believe that our social actions must be present
in the local communities where we operate.

Education for sustainability
The Embraco Ecology Award celebrated its 20thedition in 2012, with the slogan “An invitation totransform the world”. The date served as impetus to
implement some changes in the format and make iteven better, in partnership with State and Municipal
Secretaries of Education. The program aims todisseminate environmental education among public

people who
make Embraco

For 20 years
the Embraco
Ecology Award
has disseminatedenvironmental
education in Joinville(SC) schools.

30,590children and adolescentswere benefited from
Embraco social investment
actions in Brazil, China, Italy,
United States and Slovakia,
in 2012.

10,237 hours
of services provided tocommunities in all countries
where we operate in 2012.

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Sustainability
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who
we areand private schools in the municipality of Joinville,
Santa Catarina (Brazil).
In registering the 2012 works (awarded in 2013),
the Sustainable Educator Space methodology,
developed by the Ministry of Education (MEC), wasincorporated into the Award. Today, the directive
is recognized as a public policy in Brazil andencourages schools to have a balanced relationshipwith the environment.
The Embraco Ecology Award encourages
development of projects related to environmental
education and invites schools to include the topic in
its political-pedagogical plan.
Discussion on sustainable practices involves
principals, teachers and students. Besides theapproach within the different disciplines, the school
will be motivated to think of ways to consume lessenergy, improve acoustic comfort and integrate theenvironment with the school infrastructure.
With the new methodology, the Embraco Ecology
Award began adopting two categories: Action andTransformation. In both categories, preschool andhow we understandsustainability

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BLOGS FORECOLOGY

elementary school projects can participate. In
the Action category, the focus is on pedagogicaland management aspects. In Transformation,
the idea is to encourage schools and teachers todevelop projects that address three dimensions
comprehensively: pedagogical, management andinfrastructure.
From these award changes, we contributed to theemergence of reference schools in Joinville, which
can serve as inspiration and example for the wholecountry. Besides promoting meetings with educators,
developing targeted communication and events, weoffer a consultancy that tracks the projects’ progressin participating learning institutions.
In its 20-year history, the Embraco Ecology Award

has had over 700 registered projects, 93 implemented
and more than 100,000 people affected. It reachedits 20th edition included among the United Nations’Global Compact Best Practices (UN, 2012), recognizedby the Eco, American Chamber of Commerce, andExpression of Ecology awards, also inserted in thepresentation curriculum of environmental education
conferences inside and outside Brazil.
In 2012, we created an exclusive blog for theaward (www.premioembracoecologia.wordpress.
com). With it, it’s possible to spread good ideas andencourage participation of learning institutions,
showing sustainable practices developed in the units.
Further information can be accessed by the sitewww.embraco.com/ecologia.

In 2012, with Itaiópolis’
Secretary of Education,
we held the third editionof the Ecology Network
project. The goal is to getcloser to students andencourage them to become
agents of change throughenvironmental education.
We train, orient and instructparticipants to be awareof sustainability issues.
Once aware, these youths
stimulate and engage
others in transforming
realities and developing
communities. All work is
disseminated through blogs
that show what students
are doing and what results
they’ve already achieved.

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SEED-PAPER
PRODUCTION
In Alegria de Viver Child Education Centre (CEI) in
Joinville (SC), the paper used is not going to the trash.
Once discarded, the material is planted on the school’s
property and turns into trees, fruits and vegetables. It’s not
magic, but creativity. Thanks to the production of seedpaper made by students and teachers themselves, what
was waste becomes food.
The project was the winner of the Embraco Ecology
Award 2012. It began after the school noticed the large
amount of paper that was used daily. The idea’s simple,
but very effective. School personnel recycle paper and,in the mixture, insert good quality seeds. “It’s the second
time, in three years, we’ve received the Embraco Ecology
Award. The first was in 2010. Recognition is importantbecause it gave credibility to obtain partnerships withthe community. Also, monitoring with meetings and thecompany’s orientation helped to greatly improve theschool’s structure”, states Rose Maria Felizari, principal of
Alegria de Viver CEI in Joinville (SC).

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ENVIRONMENT AND
EDUCATION
For two years we’ve conducted in
Itaiópolis (SC) – municipality where
one of Embraco’s units is located - anenvironmental education program thatmobilizes the school community. The
Embraco Environmental Gymkhana
involves principals, teachers and students,and has the support of the State andMunicipal Secretaries of Education.
Eight schools participated in the
Gymkhana in 2012. During the school
year, students and teachers performed
seven tasks related to the themes nature,
education, inclusion and quality of life.
The actions involved volunteer work,
agroecology and thematic parade.
The Environmental Gymkhana
opens space for discussion about
the environment and environmental
education more effectively in schools, plus
strengthens actions already carried out
by Embraco and enables the exchange ofexperiences with the community.

Incentive to volunteer
We’re committed to engaging our employees
in volunteer work together with the community.
One of the important actions is Global Volunteer
Day - a large event, held in coordination with allunits. The program encourages our employees
to set aside one or two days a year to work in acommunity. In 2012, 4,200 hours of volunteer
work involved 343 people.

Ceremonycommemorating
the Embraco
Ecology Award’s
20th anniversary
in 2012.

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who
we areFor Global Volunteer Day,
we use the Oasis methodology,
which helps us realize dreams by
developing initiatives that address
the communities’ demands
more effectively.

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We share seven steps, involving all stages of
the work and including aspects such as knowledgeof the community, organization and planning,joining forces and collective work, celebration andencouraging new actions. They are:1 Gaze observe the community, people and site’scharacteristics. Know the situation well and what
can be improved.
2 Affection live with people, listen, discuss and establish
a relationship of trust and affection with thecommunity.
3 Dream build the image of what you want to have or
do. Go beyond simply identifying problems, butconnect the people’s individual dreams.
4 Care organize, plan and seek resources to transformthe dream into reality. It’s the beginning of themobilization and of the changes.

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5 Miracle is time to work, join forces, to act collectively andexplore what’s best in the community towards acommon dream.
6 Celebration time when participants gather to observe the results
and celebrate the good work.
7 Re-evolution is the time to think about the future, to reap thelearnings and encourage the community to participate
in new projects.

GLOBAL VOLUNTEER DAY
Learn about the main results of 2012
Unit
BrazilVolunteers
200

Hours worked

Activities

3,500

Made improvements in Morro do Meio
community, in Joinville.
Actions in Santo Antonio Hospital, in Itaiópolis.

Slovakia

90

720

China

40

320

Italy

40

280

USA

10

40

Mexico25

198

Actions in Slovak Paradise National Park.
Various activities, such as trash collection, were
performed.
Work with the Mulan Community, which supports
migrant workers and their families.
Actions in an orphanage.
Work done at Covenant House, a nonprofit
organization dedicated to homeless people.
Support to Mexican entity Unido, which develops
activities with disabled children.

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Embracovolunteers help
paint the school’s
wall in the latest
edition of Prove a
Different Day.

Community service
Created almost ten years ago, the volunteer
project Prove stands out for bringing Embraco
employees closer to the community in a verypractical way. The work is carried out in two lines ofaction: Prove Management and Prove A Different Day.
In China, employees took advantage of Prove
A Different Day to paint the outside of a school
which provides support, mainly, for migrant workers’
children. In Itaiópolis, in Santa Catarina (Brazil), a
hospital also received new paint, and the parking lot
was renovated.
Another 2012 highlight was Prove Management,
conducted together with the Environmental Policeof the State of Santa Catarina in Brazil. To optimize

their management, we invited our professionals
linked to the management model Embraco Way ofManagement (EWM) to share technical knowledge
with the team.
A plan to modernize the police’s administration
was prepared by Embraco’s team. With theorientations, the institution increased inventory
and made advances in managing the purchase ofmaterials and equipment through public bidding.
HR professionals participated with the group from
Embraco, to show how we can use corporate
volunteering as a climate, integration and teamengagement tool. The HR team’s monitoring wasessential to the project, showing the benefits ofcorporate volunteering.

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Best practices

Our efforts earned
us the Responsible
Large Company
award, through Via
Bona Slovakia, inearly 2013.

Actions in Slovakia
In 2012, we were present in traditional
activities carried out before the season openingof the zoo in Spišská Nová Ves. Embraco
volunteers helped clean paths and plant
trees. Another action was the partnership withfishermen to clean the Hornad river in Spišská
Nová Ves.
We also prepared a special event geared
towards children: the Olympic Games forChildren. There were eight competitions,involving sports such as running and long jump.
About 70 children participated in our first editionof the event.
Another important action in Slovakia was the
incentive for our employees to donate blood.
Whoever qualifies to participate doesn’t needto go to the city’s hospital. It’s possible to makea donation in their own area of the company.
In total, we were able to collect approximately
80 liters of blood. The idea is that the donation
inside our company be held at least twice a year.
All these efforts have helped us build aconsolidated image in Slovakia. And this enabled
us to win public recognition. We were voted theCountry’s Most Responsible Company, in 2012.
The award was granted by the Pontis Foundation,
through the Corporate Social Responsibility (CSR)
National Award Program Via Bona Slovakia. In
addition to winning the event’s main award, wewere first in the category Company Philanthropy:
Supporter of Volunteering.

The Business Leader Forum is one of the mostimportant initiatives that we participate in Slovakia.
The forum brings together various companies andaims to disseminate best practices in the country. In
2012, we were in three work group meetings: Active
Aging, Eco-Efficiency and Responsible Supply Chain.
The main idea of these meetings was to understandthe importance of each one of these topics andshare activities with other members.
We also participated in an international
conference called Market of Best-Practices. In theevent, we presented our volunteer program andshowed our cooperation with a local project with
suppliers. Besides this, we were in other meetings
that brought together all 25 forum participants. In
the meetings, we talked about our experience andreceived inspiration from ideas shared by other
Business Leader Forum member companies.

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Methodology

Information about G3
management approach

Not required

G3 Performance
Indicators & Sector
Supplement
Performance Indicators

Minimum of 10
performance indicators,
including at least
one of each of thefollowing dimensions:social, economic andenvironmental.

C+

B
All profile andgovernance indicators:
1.1 to 4.17
Information on theManagement Approachfor each indicator
category
Minimum of 20
performance indicators,
including at least oneof each dimension:social, economic andenvironmental.

B+A
All profile andgovernance indicators:
1.1 to 4.17
Management Approach
disclosed for eachindicator category.
Mandatory reporting ofsectoral indicators after
one year of release of
the supplement’s final
versionA+

With external verification

G3 Profile

C
Respond to profile items:
1.1; 2.1 to 2.10; 3.1 to
3.8; 3.10 to 3.12; 4.1 to
4.4; 4.14 to 4.15

With external verification

Application levels

With external verification

way, we ensure that the report is updated at the
moment it’s released.
According to our self-assessment, thereport reached the level B on applying GRI 3.0
directives (see the illustration on the side),which determines reporting of all profile items,
information on management approach and at
least 20 performance indicators, including at least
one indicator of the following areas: economic,
environmental, human rights, labor practices,
society and product responsibility. We report here
29 indicators (24 complete and 5 partial).

Report content

Embraco’s Sustainability Report 2012 isguided by the Global Reporting Initiative (GRI)
directives, a multi-stakeholder organization basedin Amsterdam, Netherlands.
Performance indicators cover the period fromJanuary 1 to December 31, 2012 and include all
Embraco units, in the seven countries where it has
operations. The Mexico unit, recently inaugurated,is being reported for the first time. Anothernovelty is in the data presentation. In countries
where there is more than one unit - Brazil andChina - the information ceased to be consolidated
into single data, showing more clearly each
operation’s impact. The cases in which the division
was made are highlighted in the report.
In the content presented in other texts, webring information that extends to 2013. In thisSustainability
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who
we areMateriality
Since 2005, we’ve adopted GRI guidelines in
preparing the sustainability report. The principles
that guided the report’s design and development
are: balance, comparability, accuracy, periodicity,
clarity and reliability of the information divulged.
We also use a materiality matrix to define thereport’s content and ensure that our reporting
process has relevance for our stakeholders.
The matrix was prepared in 2011, based on theguidelines of AA1000 - Accountability Principles
Standard 2008 which focuses on consultationand stakeholder engagement, developedby AccountAbility, British non-governmentalorganization specializing in these topics. The otherreference was GRI methodology itself.
The process included analysis of internal
documents, online consultation to the internal
public and customer survey, as well as interviews
with then president of Embraco (João Carlos
Brega), sustainability specialists and community
representatives.
In 2012, materiality was updated througha query to some of our stakeholders. Material
themes were kept in the 2012 reporting process.

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MATERIAL THEME
Eco-efficiency
Sustainable energy solutions

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54● complete● partial

People development and training
Ethics in business
Minimizing environmental impact
Respect and valuing diversity
Product quality and customer satisfaction indexes

Contact data for questions regarding
the report’s content
If you have doubts, suggestions or comments,
send them to: comunicacao@embraco.com
Corporate Communicationand Sustainability Office
Rua Rui Barbosa, 1,020, post office box 91
CEP 89219-901 – Joinville-SC – Brazil

Profile information
Strategy and analysis
Item Description

Reported

Page

1.1

Message from the President●

02 and 03

1.2

Description of key impacts, risks and opportunities●

02 and 03

Organizational profile
2.1

Name of the organization

●

06

2.2

Primary brands, products, and/or services●

05 and 06

2.3

Operational structure of the organization

●

06

2.4

Location of the organization’s headquarters

●

07

2.5

Countries where the organization operates and where its
main operations are located

●

06

2.6

Nature of ownership and legal form

●

07

2.7

Markets served

●

06

2.8

Company’s size

●

06

2.9

Main changes during the period covered by the report●

There were no significant changes in the organization’s size or the ownership
structure. Changes in management structure are detailed in the body of the report.

●

08

2.10 Awards received during the period covered by the report
Report parameters
3.1

Period covered by report●

January 1 to December 31, 2012 (exceptions are clearly indicated).

3.2

Date of most recent previous report●

The previous report was published in 2012, with data relative to 2011.

3.3

Reporting cycle●

Annual

3.4

Contact data regarding the report’s contents

●

54

3.5

Process for defining report content

●

54

3.6

Boundary of the report●

All Embraco units that were in operation in 2012, the reporting period, were
included. To know what these units are, see the map on page 06.

3.7

Statement of any specific limitations on the scope orboundary of the report●

The report’s scope covers the units: Brazil (Foundry, Compressors and Electronics),
China (Compressors and Electronics), Slovakia, Italy, Mexico and the United States.
Only in the SO3 indicator Russia unit data are reported.

●

Whenever possible, the indicators cover all operations, and therefore there is norisk of comparability being affected. The most significant change was the Mexico
unit’s inclusion in the report, which had an impact on some indicators. These cases
are clearly marked.

3.8

Base for report elaboration

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3.9

Data measurement techniques and the bases ofcalculations●

Answers to performance indicators follow GRI protocols with respect tomeasurement techniques and compiling data and are based on our internalmonitoring systems.

3.10

Reformulations of information provided in previous
report●There were no data reformulations. However, the 2012 report corrects inaccurate
information published in the previous report.

3.11

Significant changes in scope, boundary or measurement
methods applied in the report●

The Mexico unit was included in the report. Changes in measurement techniques
are described in footnotes of tables and graphs.

3.12 Table identifying the location of information in the report●

GRI Table

Current policy and practice with regards to seeking
external verification for the report●

The information divulged wasn’t audited.

Governance structure of the organization

●

18

4.2

Presidency of the highest governance body●

Roberto Campos.

4.3

Independent or non-executive members of the highest
governance body●

There are no independent or non-executive members.

●

Whirlpool SA, of which Embraco is a subsidiary, holds an annual meeting with its
shareholders. It also has a permanent communication channel available, which
can be accessed by the site, by phone and by email. Learn more at www.whirlpool.
com.br/investidor.aspx. Further information is available in the Management andStrategy chapter (page 14).

3.13

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4.4

Mechanisms for shareholders and employees to provide
recommendations

4.5

Link between compensation and organizational
performance (including social and environmental)●

The variable remuneration systems are based on economic goals and ensure
coherence between the evolution of the company’s performance and leadership’s
financial recognition.

4.6

Processes to ensure that conflicts of interest are avoided

●

18

4.7

Qualifications of members of the highest governancebody●

The evaluated competences of the members that compose the highest
governance body are associated with the knowledge that the executive has of
Embraco business and his/her specific area of operation.

4.8

Statements of mission and values, codes of conduct andinternal relevant principles●

17 and 18

4.9

Responsibilities for implementation of economic, socialand environmental policies

●

18

4.10

Processes for performance self-assessment of thehighest governance body

●

16

4.11

Explanation of if and how the organization applies the
Precautionary Principle●

We don’t fully adopt the Precautionary Principle, but we seek to act withenvironmental responsibility by eliminating from products and processes
substances proven harmful to the environment.

4.12

Charters, principles or other initiatives developed
externally

●

12

Page

Participation in associations and / or national /international organisms●

Brazilian Electrical and Electronic Industry Association (Abinee); Brazilian
Association of Advertisers (ABA); Brazilian Business Communication Association(Aberje); Brazilian Foundry Association (Abifa); Brazilian Human Resources
Association (ABRH); Brazilian Refrigeration, Air Conditioning, Ventilation andHeating Association (Abrava); Itaiópolis Commercial and Industrial Association(ACII); Slovakia Electrical Equipment Industry Association; Brazilian Foreign Trade
Association (AEB); 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 of Electro-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 (CNI/CEB).

4.14 List of stakeholder groups engaged by the organization●

Our main stakeholders are customers, suppliers, employees and communities
surrounding our operations.

Basis for identification and selection of stakeholders to
be engaged●

Strategic importance to our business is the main criterion for defining the priority
public to be engaged.

4.16 Approaches for stakeholder engagement●

11, 32-36, 41-51

Main issues and concerns raised through stakeholder
4.17
engagement

●

54

4.13

Governance, commitments, and engagement
4.1

55

4.15

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Performanceindicators
Economic performanceMarket presence

Indirect economic impacts

EC7 Local hiring

EC8 Impact of investments in infrastructure offered for public benefit

Economic performance● complete● complete

EC3 Coverage of pension plan obligations

We don’t have any specific policies aimed at hiring locally.
Leadership positions are: president, vice president, administrative,
officers and leaders.

We carry out private social investment actions in all countries inwhich we operate. In some plants - Brazil, Slovakia and Mexico - theactions also involve working with communities. Thus, it’s possible tounderstand the population’s key needs, as well as raise awarenessof employees and residents of these regions about the company’ssocial responsibility activities.

Disclosure on Management Approach: consult pages 7, 14 and 15.

● partial

Only plants in Brazil and Italy offer pension plans to theiremployees. There are no such benefits for units installed in China,
Slovakia, Mexico and the United States.
In Brazil, participation is voluntary and open to all positions.
The contribution varies from 1% to 5.5% of the employee’s grossmonthly salary in accordance with the salary range. We contributethe same value. The plan provides coverage for normal or early
retirement and for disability. The pension, in case of death, ispaid to dependents. In Italy, joining the pension plan is also
voluntary and is provided in collective bargaining agreements.
The contribution is 1.2% (employees) and 4% (managers). We
contribute with the same percentage. At the end of 2012, ourcumulative amount was over US$ 450,000.

Local hiring (leadership positions)

2010

2011

2012

Brazil

100%

100%

100%

China (Compressors)

77%

79%

86%

China (Electronics)

82%

85%

83%

Italy

86%

86%

77%

Slovakia

88%

88%

88%

Mexico

N/A

2%

2%

Brazil120,192

241,402

United States

66%

66%

66%

United States

8,495

2,550

Slovakia

36,20052,198N/A - not applicable.

Unit

Private social investment (US$)
2011

2012

China

5,642

7,103

Mexico

N/A

1,500

Italy

N/A

91,228TOTAL

170,529395,982

N/A – not available.

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Learn about the main actions developed in 2012.
Unit

BrazilSlovakia

UnitedStates

MexicoProject/activity

Description

Benefited

Embraco Ecology Award

Financing environmental education projects prepared by schools.

Volunteer Program
Digital Knowledge Space

Unit

Project/activity

Description

1,760 teachers and students.

Global Volunteer Day

45 volunteers provided construction services for the Mulan community.

In all, 302 volunteers provided 5,193 hours of community service in 2012.

6,640 children and adolescents from
Itaiópolis and Joinville, Santa Catarina.

Volunteer Program

Various volunteer actions, including waste collection in Xiangshan Mountain.

AngelmomTaking care of babies with physical disabilities.

Digital inclusion project carried out in Itaiópolis (SC).

317 children and adolescents.

Environmental Education

Environmental projects in Dandelion Middle School

Sports School

Social inclusion through sport.

800 children and adolescents from
Itaiópolis and Joinville, Santa Catarina.

Support to Mulan community

Donations and incentive to children’s development.

Support to NGO Rescue
ProjectMonthly financial transfers to non-governmental organization, which isbased in Joinville (SC) and focused on education.

Great Friend projectWork developed in partnership with the Guashi Fund. Volunteers create
friendships with Dandelion Elementary School students, whose families areat social risk.

Embraco Theatre Group

Employees make presentations to the community. In 2012, eight volunteers
3,800 children and adolescents.
provided 132 hours of service.

Dandelion School Volunteer
Program

Volunteers offer safety training and support adolescents in careerdevelopment.

Itaiópolis Environmental
Games

Schools are invited to participate in a game with an environmental theme.

2,862 students were involved.

Donation to Qinghai Lake
Primary School

Clothes donation.

Embraco Choir

The choir, made up of 14 employees, performed 166 hours of community
service.

2,340 children and adolescents.

Soundscape Museum

Donation of resources to the municipality that houses the museum.

Hesed Family (Homestay)

Donation of resources to benefit children with social and family problems.

Embraco Ecology Award

In 2012, the award’s fifth edition was held. The four winning schools
received investments to develop environmental education projects.

2,200 children and adolescents.

Nursery schools

Financing of renovations and donations of school supplies and toys.

1,400 children and adolescents.

People with disabilities

Support for three projects involving children with diabetes, blind children
and people with disabilities.

200 children and adolescents.

Hockey league in elementary
schoolSupport in constructing a playground and creating a league in anelementary school in the city of Spisska Nova Ves, Slovakia.

More than 2,000 children andadolescents.

Global Soap Project

Recycling soap to be used by low-income and homeless people.

Campaign to encourage
donations

Fundraising support to finance research on childhood cancer, developed in
St. Jude Children’s Research Hospital, located in Memphis, United States.

GolfeWIE Tournament

Fundraising to finance women’s studies in the electronics field.

Earth Day

Mobilization against wasting energy and promoting a healthy environment
at work, at home and at school.

Volunteer Program

304 hours of service

China¹

264 children and adolescents.

181 people

Italy

U.G.I. (Union of Italian Parents) Parents Association to support research related to childhood cancer.
Poetry award

Initiative to promote poetry in the local school.

¹ Most investments are characterized as pro bono.

Benefitedmessage fromthe president

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Environmental performance

EN4 Indirect energy consumption by primary source

Disclosure on Management Approach: consult pages 11, 13, 22, 23,29 e 30.

● complete

The Mexico and the United States units were included in 2012 in the report’s scope and therefore impacted
Embraco’s environmental performance.

EnergyEN3 Direct energy consumption broken down by primaryenergy source

Energy consumption (GJ)¹
Embraco Global

Total

Direct energy²

2011

2012

Natural gas

454,340

526,515

Methanol

387

367

Propane

2,554

3,592

LPG

12,927

13,407

Diesel oil

3,946

5,663

Gasoline

2,754

1,459

Subtotal

476,908

551,004

Electricity

913,044

1,033,215

TOTAL

1,389,953

1,584,219

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Indirect energy● complete

Refer to indicator EN4’s response.

¹ Starting in 2012, we began using the unit of measure GJ, replacing MJ. The data referring to 2011 were converted.
² In the previous report, environmental recycling was one of the items that comprised the data for the direct energy consumption in 2011. However, this isn’t an energy
source, and therefore the data has been excluded.

Energy consumption – (GJ)2011

DirectenergyIndirectenergyTotal

Energy consumption (GJ)¹
COMPRESSOR UNITS

2012

476,908
551,004

China

Italy

Slovakia

BrazilMexico²

Total

Direct energy³

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

Natural gas

65,04878,00760,161

59,410101,695

117,086

217,656

228,721-31,858444,559

515,083

LPG

-

-

-

-

-

-

5,292

6,089

-

-

5,292

6,089

Diesel oil

238

399

-

28

2,006

1,531

1,702

1,845

-

59

3,946

3,862

Gasoline

1,324

1,318

-

-

1,329

-

101

140

-

2

2,754

1,459

Subtotal

66,60979,72460,161

59,438105,030

118,617

224,751

236,794-

31,920456,551

526,493

Indirect energy

913,044
1,033,215
1,389,953
1,584,219

Electricity

103,326

118,718

50,90353,675110,256

127,707392,609410,855-

48,135657,094

759,091

TOTAL

169,935

198,441

111,064

113,114215,286

246,325

617,360

647,650-

80,055

1,113,646

1,285,584¹ Starting in 2012, we began using the GJ unit of measure, replacing MJ. The data referring to 2011 were converted.
² Inclusion of the Mexico and United States units in the indicator’s scope occurred in 2012.
³ In the previous report, environmental recycling was one of the items that comprised the data for the direct energy consumption in 2011. However, this isn’t anenergy source, and therefore the data has been excluded.

message fromthe president

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Energy consumption (GJ)¹OTHER UNITS

Components

who
we areFoundry

how we understandsustainability

Brazil (Electronics)

management
and strategy

China (Electronics)

how we manufacture
our products

United States²

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Total

Direct energy³

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

Natural gas

-

-

9,781

10,445

-

-

-

-

-

987

9,781

11,433

Methanol

387

367

-

-

-

-

-

-

-

-

387

367

Propane

2,554

3,264

-

-

-

-

-

-

-

328

2,554

3,592

LPG

3,878

3,687

3,758

3,631

-

-

-

-

-

-

7,635

7,318

Diesel oil

-

-

-

1,801

-

-

-

-

-

-

-

1,801

Subtotal

6,818

7,319

13,53915,878

-

-

-

-

-

1,315

20,357

24,511

Electricity

12,932

14,205

232,456

245,586

6,205

7,299

4,357

5,046

-

1,987

255,950

274,124

TOTAL

19,75021,524245,995

261,464

6,205

7,299

4,357

5,046

-

3,302

276,307298,635

Indirect energy¹ Starting in 2012, we began using the GJ unit of measure, replacing MJ. The data referring to 2011 wereconverted.
² Inclusion of the Mexico and United States units in the indicator’s scope occurred in 2012.
³ In the previous report, environmental recycling was one of the items that comprised the data for the
direct energy consumption in 2011. However, this isn’t an energy source, and therefore the data has been
excluded.

Water
EN8 Total water withdrawal by source● complete

Water consumption Embraco Global (m³)
728,811

Energy matrix

China

Italy

Slovakia

MexicoUnited States

Brazil

EN5 Energy savings due to improvements in conservation

Conventional thermal

79%

73%

24%

80%

70%

9%

and efficiency

Hydroelectric

18%

18%

21%

14%

6%

82%

Other renewable sources

1%

9%

2%

4%

4%

6%

Nuclear

2%

0%

53%

2%

20%

3%

Source: World Energy Council – 2012 Sustainable Energy Index.

private social
investment

601,819● complete

We invest in the modernization and efficiency of equipment andmotors and installation of devices that regulate gas consumption.
Employees were also engaged to increase the number ofcompressors manufactured while maintaining the same energy
consumption. As a result, we saved 65,491 GJ of energy.
Unit

Energy saved (GJ)¹

Brazil (all units)

24,893China (Compressors)

3,180

China (Electronics)

1,699

Slovakia

35,719Embraco Global Total

65,491¹ Starting in 2012, Embraco began using the GJ unit of measure, replacing MJ.

396,616
292,583

309,236

2011

Wells
Water supply networks
Total

332,195

2012

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Water recycled and reused – EMBRACO GLOBAL

Water consumption (m³)

China

EMBRACO GLOBAL

2011

2012

Wells

292,583

332,195

Water supply networks

309,236

396,616

Total

601,819

728,811

BrazilItaly

Slovakia

Mexico¹

Total

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

Wells

-

-

147,692

176,391

37,44340,382----

185,135

216,773

Water supply
networks

131,465

134,231

67,061

68,023

16,784

10,37088,027105,163-

63,900303,337

381,687

Total

131,465

134,231214,753

244,41454,22750,752

88,027105,163-

63,900488,472

598,460¹ Inclusion of the Mexico unit in the indicator’s scope occurred in 2012.

Foundry

2011

2012

2011

Wells

12,015

14,355

Water supply
networks

2,662

Total

14,677

Foundry

Brazil (Electronics)

China (Electronics)

United States¹

Total

2012

2011

2012

2011

2012

2011

2012

2011

2012

93,003

94,527

-

-

2,430

6,540

-

-

107,448

115,422

2,509

1,131

5,265

2,106

3,324

-

-

-

3,831

5,899

14,92916,864

94,134

99,792

2,106

3,324

2,430

6,540

-

3,831

113,347

130,351

2011

2012

2011

2012

2011¹

2012

2011

2012

2011

2012

22,54632,545

118,007

144,994-

20,00035,771

27,972

176,324

225,511

Recirculation rate (%)

17%

24%

55%

59%

-

31%

38%

28%

29%

31%

Emissions, effluents and waste
EN16 Total direct and indirect greenhouse gas emissions● complete

Direct37,695

Indirect71,128

Total

108,823* The methodology used is the GHG Protocol. All direct and indirect emissions arising from electrical energy
consumption were recorded.

¹ Inclusion of the United States unit in the indicator’s scope occurred in 2012.

Direct35%
37,695

EN10 Percentage and total volume of water recycled and reused● complete

The absolute volume of water recycled by Embraco increased
from 29% in 2011 to 31% in 2012. Water is reused in production
processes, toilet flushing, cooling towers and floor washing.
Altogether, in 2012, 225,511 m³ of water were reused.

Total

Total volume (m³)

GHG emissions (tCO2 )* – Embraco Global

Water consumption (m³) – OTHER UNITS
Components

Mexico¹¹ A inclusão da unidade Mexico no escopo do indicador ocorreu em 2012.

Water consumption (m³) – COMPRESSOR UNITS
China

BrazilGHG EMISSIONS(tCO2)*
Indirect

65%
71,128message fromthe president

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GHG emissions (tCO2)* – COMPRESSOR UNITS
BrazilItaly

Slovakia

MexicoTotal

Direct5,757

17,717

3,482

7,405

1,740

36,101

Indirect

33,046

7,381

7,201

8,939

8,022

64,589Total emissions
38,803
direct + indirect

25,098

10,683

16,344

9,762

100,690

GHG emissions (tCO2)* – OTHER UNITS
Components

Foundry

Brazil(Electronics)

Direct

490

969

62

-

73

1,594

Indirect

258

4,399

133

1,404

345

6,539

Total emissions
direct + indirect

748

5,368

195

1,404

418

8,133

China
(Electronics)

UnitedStatesTotal* The methodology used is the GHG Protocol. All direct and indirect emissions arising from electrical energy
consumption were recorded.

EN21: Total water discharge by quality and destination● complete

Absolute water discharge increased by 20% in 2012, comparedto the previous year.

Total discharge of effluents (m³)

2011

people who
make Embraco

private social
investment

Discharge of effluents (m³) – Embraco Global

China

321,199

how we manufacture
our products

management
and strategy

387,628

2012

2011

2012

Return to collection point

278,552

337,155

Public Sewage System

2,430

-

Evaporation

30,06550,254Irrigation

10,152219

Total

321,199

387,628● complete

Generated waste Embraco Global (t)2011

BrazilItaly

2011 20122011 2012 2011 2012 2011 2012 2011 2012 2011

Slovakia

China

2012

66,573 75,768 N/A

48,214 N/A-

82,964 83,396 69,854 63,227 219,391 270,605

PublicSewageSystem

-

-

N/A

-

-

-

-

-

-

-

2,538

N/A

1,313 ----

30,06538,069

-

N/A

219

-

-

-

-

219

N/A

Evaporation 30,065 34,218 N/A
Irrigation

-

Total

96,638 109,986 N/A-

N/A

50,752 N/A-

Non-hazardous
waste

Hazardous
waste

1,532 82,964 83,396 69,854 63,227 249,456 308,893

Total
Discharge of effluents (m³) – OTHER UNITS
Brazil(Electronics)

China(Electronics)

Total

2011

2012

2011

2012

2011

13,660 49,891 52,890 2,106

N/A

-

N/A

59,161 66,550

-

-

-

-

N/A

2,430

N/A

2,430

-

Evaporation -

3,204

-

8,981

-

N/A

-

N/A

-

12,185Irrigation

1,680

-

8,472

-

-

N/A

-

N/A

10,152 -

Total

8,844

16,864 58,363 61,871 2,106

N/A

2,430

N/A

71,743 78,735

Components¹

Foundry

2011

2012

2011

Return tocollection
point

7,164

PublicSewageSystem

-

2012

2012

Total

Return tocollection
point

-

61

EN22: Total weight of waste by type and disposal method

Discharge of effluents (m³) – COMPRESSOR UNITS
MexicoGRI
content

113,848
127,482
3,699
4,107
117,547
131,589

2012

N /A - not available.
¹ The unit that manufactures electronic components in Brazil is in a transition process from its own
Sewage Treatment Plant (STP) to one from the condominium, which, until now, has no hydrometer formeasurement. Meanwhile, the discharge data of the unit that manufactures electronic components in
China weren’t available for the year 2012.

In 2012, absolute waste generation increased 12% over theprevious year. Embraco Compressors Brazil unit is the largest
generator of waste, representing 52% of the global total. The
Foundry Unit is responsible for sending the largest volume of waste
going to landfills, 77% of the amount.
The destination for recycling and sanitary landfills remained
stable - 85% and 15%, respectively. For economic recycling (sale ofmaterial for reuse by another organization) steel, paper and plastic
scraps were sent. As for environmental recycling (sale of material forreuse by another organization), lamps and industrial towels are sent.
For incineration, Sludge oil and contaminated solids are sent. And,

Sustainability
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for landfills, foundry sand, biological sludge from sewage treatment
plant (STP) and physico-chemical sludge from STP.
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TOTAL WASTE – COMPRESSOR UNITS
Non-hazardous waste (t)¹

China

BrazilItaly

Slovakia

Mexico²

Total

2011

2012

2011

2012

2011

2012

2011

2012

2011²

2012

2011

2012

Economic recycling

9,945

12,70863,46065,27061

5,590

16,56919,852

N/A

3,666

90,035

107,086

Environmental recycling

-

-

-

8

5,857

1,027

-

3

N/A

-

5,857

1,038

Non-hazardous waste (t)¹

2011

2012

Landfill

926

957

1,092

1,466

140

-

672

819

N/A

128

2,830

3,370

Economic recycling

90,857

107,894

Environmental recycling

5,873

1,040

Construction/remedial
waste

-

-

167

-

-

-

-

-

N/A

-

167

0

Landfill

16,951

18,548

Total

10,871

13,66564,71966,744

6,058

6,617

17,241

20,6740

3,794

98,889111,494

Construction/remedial waste

167-

Hazardous waste (t)¹

2011

2012

2011

2012

2011

2012

2011

2012

2011²

2012

2011

2012

Subtotal

113,848

127,482

Economic recycling

21

25

193

241

-

-

32

32

N/A

-

246

298

Hazardous waste (t)¹

2011

2012

Environmental recycling

-

1

62

70

133

-

1,780

1,912

N/A

2

1,975

1,985

Economic recycling

255

305

Incineration

50

39

808

683

-

-

-

-

N/A

92

858

814

Environmental recycling

1,985

1,991

Landfill

-

90

401

288

-

195

147

281

N/A

45

548

899

Incineration

879

845

Total

71

155

1,464

1,282

133

195

1,959

2,225

N/A

139

3,627

3,996

Landfill

580

966

Subtotal

3,699

4,107

TOTAL

117,547

131,589¹ Data from the previous report were reported in kilograms, and not tons, as indicated in the report. This
information was adjusted this year. Information on waste disposal method is provided by the contractors
responsible for their destination.

¹ Data from the previous report were reported in kilograms, and not tons, as indicated in the report.
This information was adjusted this year. Information on method of waste disposal is provided by thecontractors responsible for their destination.
² Inclusion of the Mexico unit in the indicator’s scope occurred in 2012.
N/A – not available.

TOTAL WASTE – OTHER UNITS
Brazil (Electronics)

China (Electronics)

United States²

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

Economic recycling

534

597

183

107

78

76

27

28

N/A

-

822

808

Environmental recycling

-

2

16

-

0

-

-

-

N/A

-

16

2

Landfill

35

69

14,084

15,065

-

-

2

6

N/A

38

14,121

15,178

Total

569

668

14,283

15,172

78

76

29

34

N/A

38

14,95915,988

Hazardous waste (t)¹

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

Economic recycling

5

4

4

1

-

2

-

-

N/A

-

9

7

Environmental recycling

6

3

1

3

2

0

1

-

N/A

-

10

6

Incineration

-

8

21

22

-

-

-

0

N/A

1

21

31

Landfill

5

8

27

58

-

1

-

-

N/A

-

32

67

Total

16

23

53

84

2

3

1

0

N/A

1

72

111

Non-hazardous waste (t)¹

Components

Foundry¹ Data from the previous report were reported in kilograms, and not tons, as indicated in the report.
This information was adjusted this year. Information on method of waste disposal is provided by thecontractors responsible for their destination.
² Inclusion of the Mexico and United States units in the indicator’s scope occurred in 2012.
N /A - not available.

Totalmessage fromthe president

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Report 2012

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we arehow we understandsustainability

Social performance – labor practices
and decent work
Disclosure on Management Approach: consult pages 40, 41, 42,
43 and 44.

how we manufacture
our products

management
and strategy

private social
investment

people who
make Embraco

GRI
content

63

Number of employees
BrazilEmployees
For indefinite period

United States

Mexico

2011

2012

2011

China
2012

2011

Italy
2012

2011

Slovakia
2012

2011

2012

2011

2012

2011

Total
2012

5,427

6,740

1,915

2,232

599

606

1,933

1,995

58

57

N/A

654

9,932

12,284

Temporaries

831

45

94

122

1

9

289

0

1

0

N/A

53

1,216

229

Subtotal

6,258

6,785

2,009

2,354

600

615

2,222

1,995

59

57

N/A

707

11,14812,513

643

2,120

167

693

24

14

129

456

0

0

N/A

0

963

3,283

6,901

8,905

2,176

3,047

624

629

2,351

2,451

59

57

N/A

707

12,111

15,796

Outsourced

Employment

TOTAL

N/A – not available.

LA1:Total number of employees by employment type, employment

contract and region

LA2: Total number and rate of employee terminations by age group, gender, and region● partial● complete

Between 2010 and 2012, Embraco increased by 30% the total
number of employees - considering direct, temporary and outsourced.

Number of terminations – Embraco Global
Total

Number of employees – Embraco Global
Employees

2011

2012

Number of terminations

For indefinite period

9.932

12.284

By gender

Temporaries

1.216

229

Subtotal

11.14812.513

Outsourced
TOTAL

2011

2012

1,937

2,489

Brazil

China

Italy

Slovakia

United States

Mexico

Total

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

Men

1,078

1,220

399

215

21

7

58

45

6

2

N/A

277

1,562

1,766

Women

253

398

91

117

3

4

26

28

2

0

N/A

176

375

723

963

3.283

By age group12.11115.796<30 years

697

1,090

425

215

0

1

28

20

1

0

N/A

153

1,151

1,479

From 30 to 50 years

560

482

65

89

24

8

40

37

6

1

N/A

297

695

914

>50 years

74

46

0

28

0

2

16

16

1

1

N/A

3

91

96

Total

1,331

1,618

490

332

24

11

84

73

8

2

N/A

453

1,937

2,489

Rate of terminations (%) – 2012
By gender

Brazil

China

Italy

Slovakia

United States

Mexico

Total

Men

18

9.1

1.1

2.3

3.5

39.2

14

Women

5.9

5

0.7

1.4

0

24.9

6

<30 years

16.1

9.1

0.2

1

0

21.6

11

From 30 to 50 years

7.1

3.8

1.3

1.9

1.8

42

7

>50 years

0.7

1.2

0.3

0.8

1.8

0.4

1

Total

23.8

14.1

1.8

3.7

3.5

64.1

20

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management
and strategy

how we manufacture
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Health and safety*

Relationship between workers and governance

Injury rate (%)

Occupational
illnesses rate (%)

Total days lost

2011

2012

2011

2012

2011

2012

private social
investment

GRI
content

64

Training and education

LA4: Percentage of employees covered by collective

Brazil (Compressors)

1.07

1.16

0.03

0.02

5.77

6.71

LA10: Average hours of training per year, per employee, broken

bargaining agreements

China (Compressors)

0.79

0.70

0

0

4.68

0.57

down by functional category

China (Electronics)

0.50

0.63

0

0

0

29.17

Italy (Compressors)

2.99

2.31

0

0

35.1

11.6

● complete

Because of a change in Slovakia’s government, the percentageof employees affiliated with unions rose from 8% to 14%. In Brazil,
most employees are covered by collective bargaining. The UnitedStates doesn’t have this type of agreement.
BrazilAffiliated with
unions (%)

China

Italy

Slovakia

Mexico

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

19¹

19

89

100

33

35

8

14

N/AV

67

Collective
bargaining
98
agreement (%)

98

N/A

100

100

100

100

100

N/AV

Slovakia (Compressors)

0.40

0.53

0

0

13.8

1.87

United States

0

0

0

0

0

0

Mexico (Compressors)

N/AV

1.34

N/AV

0

N/AV

6.05

Brazil (Electronics)

N/AV

1.5

N/AV

0

N/AV

0

Components

N/AV

0.52

N/AV

0

N/AV

0

Foundry

N/AV

1.35

N/AV

0.45

N/AV

0.45

Total Embraco Global

0.94

1.02

0.03

0.03

7.53

4.6

* In 2012, there were no deaths recorded in Embraco’s units.
N/AV - not available.
Absenteeism rates of the following units were divulged starting in 2012: China Electronics (1.26%), Brazil
Electronics (0%), Components (0%), Foundry (0%) and Embraco Global Total (8.34%).

67

Absenteeism rate (%)¹ Adjusted value.
N/A – not applicable.
N/AV – not available.

2011

Work health and safety

2.42

Italy

2.92

LA7: Rate of injuries, occupational diseases, lost days, absenteeism,

2.36

Slovakia

and work-related fatalities by region

2012

1.8

● partial

Health and safety* – Total Embraco Global

China
2011

2012

Injury rate

0.94

1.02

Occupational illnesses rate

0.03

0.03

Total days lost

7.53

4.6

* In 2012, there were no deaths recorded in Embraco’s units.

Brazil

0.64
0.66
2.92
2.13

● complete

Average training (h)*Executives

BrazilItaly

Slovakia

UnitedStates

China(Compressors)

China(Electronics)

Mexico¹

0

185.5

5.86

0

81.5

6.96

0

Middle0.92
management

1,405.5

5.38

4

91.3

60.72

56

Team

17.54

5,509

1.47

10

54.8

182.46

35

Average per
employee

18.46

12

3.13

13

70.1

52.59

8

1 The Mexico unit has few hours of training, because it’s a new plant.
* In 2012, data from the China units (Electronics) and Mexico became part of this indicator’s scope. Brazil
plants’ data are consolidated.

message fromthe president

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Average hours of training per
employee*
2011

Brazil¹

201210

private social
investment

GRI
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65

Diversity and equal opportunity
LA13 Composition of groups responsible for corporate governancebodies and breakdown of employees by category according to gender,
age group, minorities and other diversity indicators

Age distribution of workforce (%)
32

Slovakia

over 50 years
between 30 and 50 years
Up to 30 years

3

China

people who
make Embraco

2
12UnitedStateshow we manufacture
our products● complete

18

Italy

management
and strategy

8
13
65

6

16

70

6
34

60

china
Electronics

china

Brazil

6

Italy
10

64

88

3
23

86

68

65

68
70

36

2011

14

58

40
2012

19

Mexico1

72*The Mexico unit was included in the indicator´s scope only in 2012; therefore there is no
historical data.

2011

14

69

1 There is no monitoring by plant.

34

13

United States

36

44

60

Slovakia

2012

2011

31
2012

2

2011

1
2012

18

16

17

2011

2012

2011

25
7
2012

2012

1 Data relating to 2011, when the unit went into operation, aren’t available.

message fromthe president

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who
we arePeople with disabilities (%)*
BrazilChina (Compressors)

Italy

2012

2011

2012

2011

2012

2011

2012

Executives

2.3

3

0

0

0

0

0

0

Middlemanagement

1.1

1

0

0

0

0

0

1

Teams

5.2

5

0.3¹

0.2

2

2.6

1

2

¹ The percentage refers only to people who have a medical examination to prove disability. The number ishigher than the official data shows.
* United States, China (Electronics) and Mexico units don’t have people with disabilities among employees.
In the previous report, supervisors were included in the middle management category. In 2012, only
leader positions are considered in middle management.

Middle management

Teams

2011

2012

2011

2012

2011

2012

Brazil

7

8

9

18

24

26

China (Compressors)

29

50

32

40

19

23

China (Electronics)

0

0

33

29

87

84

Italy

0

11

17

26

32

32

Slovakia

13

13

28

32

34

35

United States

0

0

0

30

43

47

Mexico

N/A

0

N/A

16

N/A

37.2

N/A - not applicable.

LA14 Proportion of base-salary between men and women byfunctional category● complete

Salary variations in the same category may occur due to different
levels of professional experience.
Salary ratio between men / women
UnitedBrazilItaly Slovakia(Compressors)
States

China
China
BrazilMexico(Compressors) (Electronics) (Electronics)

Executives

85%

71% 98,32% N/A

114%

N/A

0%

N/A

Middle101%
management

90% 79,93% 82%

91%

76%

88%

97%

Teams

90% 86%

103%

41%

39%

68%

N/A - not applicable.

94%

people who
make Embraco

private social
investment

GRI
content

66

Child and forced labor or compulsory labor

Disclosure on Management Approach: consult pages 28 and 29.
HR6 Operations and suppliers identified as having significant risk for

Procurement processincidents of child labor and measures taken to abolish child labor● complete

HR1 Percentage and total number of significant investment

agreements that include human rights clauses or that were
subjected to human rights screening● complete

Participation of women in the workforce (%)

73%

how we manufacture
our products

Social performance – human rights

Slovakia

2011

Executives

management
and strategy

Refer to indicator HR2’s response.
HR2 Percentage of contractors, significant suppliers and othersignificant business partners that have undergone screening on
human rights and the measures taken.
● complete

We have a specific code of conduct for suppliers, in which humanrights issues are addressed. From 91% to 100% of suppliers are
subjected to this document, depending on the unit. In most ofthem, they’re considered significant contracts that have a value over
R$ 1 million.
Foundry conducted, in 2012, an evaluation with 48 suppliers. Of
these, 12.5% were audited in person. In 2013, a new survey will be
made, with the aim of evaluating the suppliers’ evolution. Also there
will be a training meeting focused on items with lower scores.

Refer to indicator HR7’s response.
HR7 Operations and suppliers identified as having significant risk
for incidents of forced or compulsory labor and measures taken tocontribute to eliminate forced or compulsory labor● complete

We don’t have operations with significant risk for incidents ofchild labor and slave or forced labor. However, we’re aware thathiring suppliers involves this type of risk. A control tool used is
the Supplier Code of Conduct, which addresses the human rights
issue and must be followed by all units. In Brazil Electronics andChina Electronics, the supplier qualification process includes
audits and visits.

Sustainability
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Social performance - society
Disclosure on Management Approach: consult page 18.

Corruption

how we manufacture
our products

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67

SOX processes evaluatedBrazilItaly

Slovakia

United States

2011

2012

2011

2012

2011

2012

2011

2012

Total

12

13

9

9

9

9

6

6

Percentage
of unit’s
processes

33%

45%

17%

24%

25%

24%

25%

16%

SO3 Percentage of employees trained in anti-corruption

tools, including the Code of Ethics, the Supplier Code of Conductand compliance training. Anonymous complaints about corruption
can be made through a free hotline, which is available to employees,
customers, suppliers and other stakeholders. A specific committee
checks, confidentially, all complaints received. The contact numbers
are disclosed in the Management and Strategy chapter.

SO2 Units submitted to risk assessments related to corruption

policies and procedures

Channels for reporting● complete● partial

Brazil: 0800 891 4247

As Embraco is a subsidiary of Whirlpool Corporation, it must
adopt the same practices with regard to the control of risks related
to corruption and therefore complies with the Sarbanes-Oxley Act(SOX) requirements.
All internal controls over significant financial reporting are
documented. Our internal audit area is responsible for testing
internal SOX controls in the areas related to design, performance andefficiency. The information is validated and certified by an external
audit on an annual basis. In 2012, 228 controls were audited, in 40%
of Embraco’s plants.
In 2013, SOX controls will also be implemented in China(Compressors and Electronics). Therefore, 60% of our units will be inaccordance with the North American law.
Another important control tool is operational audits. Currently,
100% of the units are subject to periodic review processes. In 2012,
there were six operational audits in order to verify the internal
control environment.

Our Code of Ethics covers topics such as corruption, money
laundering and antitrust actions. It’s distributed and properly
explained in new employee integration training. Additionally, we
have 15 global internal policies that address the theme. In 2012,
we trained 1,180 people, including managers, administrativeand interns.

Italy: 800 788 476

Public policies

Employees trained in anti-corruption
procedures – EMBRACO GLOBAL

SO5 Positions regarding public policies

2011

2012

Brazil

21%

59%

China

9%

8%

Italy

26%

28%

Slovakia

13%

33%

United States

80%

91%

RússiaN/A

80%

Mexico

N/A

98%

Total

17%

47%

N/A – not applicable.

SO4 Measures taken in response to incidents of corruption● complete

Just as in the last two years, in 2012 there were no cases ofcorruption identified. We’ve adopted a number of anticorruption

Slovakia: 800 961 2419
China: 11 800 711 0475
Mexico: 001 800 961 4262

● complete

We actively participate in articulating public policies that
contribute to the refrigeration sector’s development. Our focus
is on formulating guidelines for innovation, energy efficiency andregulation. The company’s work is primarily done through senior
management’s actions in class entities and trade associations.
In the list of organizations that count on our cooperation,
are the National Association of Research and Development of
Innovative Companies (Anpei), Brazilian Association of Electricaland Electronic Industry (Abinee), Brazilian Association of TechnicalStandards (ABNT), Federation of Industries of the States of Santa
Catarina and São Paulo (Fiesc and Fiesp), National Council ofSustainability
Report 2012

message fromthe president

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Scientific and Technological Development (CNPq) and International
Electrotechnical Commission (IEC).
Essential positions taken by these entities

Innovation

We lead a large group of companies that operates in a coordinated manner tocreate, in Brazil, an environment conducive to innovation. The idea is to discussand formulate claims on topics such as laws to encourage innovation, the patent
system and partnerships between universities and businesses.

Energy efficiency

We work with major energy sector companies (Cemig and Celesc). The focus ofthese partnerships is to structure research and development along with energy
efficiency projects in refrigeration systems.

Regulations

Through representative entities, we monitor policy decisions and bills that impact
the refrigeration market.

management
and strategy

how we manufacture
our products

people who
make Embraco

external partners, which ensure greater transparency and quality.
During the compressors’ development and manufacturing, we
make a series of simulations. With the tests, we can detect potential
improvement opportunities and avoid failures when the products arein the market. This evaluation is performed on 100% of compressorfamilies, following a representative Statistical sampling.

Products and services labeling

Customer safety and health
PR1 Evaluation of impacts on health and safety during the life cycleof products and services● complete

From the new product development’s initial stages, we work
to reduce health and safety risks of employees and customers.
We have a list of harmful substances, which must be avoided in
our processes and products. Altogether, there are 632 controlled
substances. Until 2012, there were 546. Some have already beenbanned, and others are being eliminated. The process is certified by
the QC080000 standard. Tests are also conducted internally and by68

Underwriters Laboratories (UL), Association for Electrical, Electronic &Information Technologies (VDE), Instituto Argentino de Normalizacióny Certificación (Iram), Rheinland – Technischer UberwachungsVerein Rheinland (TUV) and China Quality Certification Centre (CQC).
Compressors that contain outsourced components, have a label withdifferent encoding, indicating this special situation.

survey results● partial

PR3: Type of information about products and services required by● complete

Disclosure on Management Approach: consult pages 35 and 36.

GRI
content

PR5: Practices related to customer satisfaction, including

labeling procedures subject to such requirements

Social performance - product responsibility

private social
investment

Concern with harmful substances involves post-consumption.
We developed, 12 years ago, the Top Green program, which aims
to collect used compressors. Since 2000, we’ve already removed
more than 3 million products from the market. The material isdisassembled, and the components are sent for recycling, reuse orproper disposal, preventing damage to the environment. Today, we’reable to send for recycling 99% of the total weight of each compressor.
To improve the safety of consumers and customers, we publish
the compressor application manual. It includes information about
electrical installation, mounting, handling, and storage as well as
solutions to the main technical problems that may occur. The content,
available on the company website, also provides guidelines on theproper use of the equipment.
We disclose on labels certifications obtained from the regulatory
bodies which attests to the models’ safety. This is the case of seals:

Since 2012, we’ve conducted a satisfaction survey with ourcustomers. Through phone calls or email, partners located in
more than 30 countries respond to a complete questionnaire,
which includes aspects such as purchasing decision, customer
recommendation, product quality and performance in addition totechnical assistance quality.

Sustainability
Report 2012

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Credits
General coordination
Embraco – Corporate Communication and Sustainability Office
GRI consultancy, writing and editing
Report Sustentabilidade
Revision
Assertiva Produções Editoriais
English version
Spin Traduções
Graphic design and layout
Report Sustentabilidade
Images
Embraco Image Bank and Thinkstock
Typeface family
Embraco Beau Sans

management
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69