Sustainability Report
2011

Sustainability Report
2011

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ANNEX:SOCIAL INVESTMENT– PROJECTS 2010
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Interview with the President

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Prepared
for anotherhundred YEARSIn this interview, president João Carlos Brega talks about
Embraco’s trajectory and its innovative spirit.

What is your assessment of 2010?
We are living a special moment in Embraco. In 2011, the company celebrates
40 years, and we have many reasonsto celebrate, both in terms of what wehave already accomplished as well as
regarding the future. In 2010 alone
there were several achievements: weincreased our capacity in China by 50%,
we launched new products in Brazil andrenewed Slovakia’s entire product line.
Our perspective is to move forward on
our path of growth, consolidating ourglobal presence. For this, we have a very
well prepared team which year after
year has been able to make a difference
and drive the business.

How does the company prepare itself
for the future?
The challenge is permanent. We wantto build an increasingly more global
company, which is a much broader
concept than having an internationalpresence which requires a totally different mindset. For this we seek to foster
diversity ensuring inclusion. Embraconeeds to reflect, at all levels and functions, the geographic diversity of its operations. We want all regions where weare present to have a voice within thecompany. This enriches our corporate
culture and represents a competitive
advantage over competitors.

Interview

ProfileWhat else can we highlight in thisregard?
Another challenge, for which we prepare ourselves constantly, is to maintaintechnological leadership, since technology is what enables us to develop anddeliver innovative and smart solutions
that make a difference for our customers’ business.
On this point, we have one importantdifferential: energy efficiency, a flag thatthe company raised a long time ago andwhich has been gaining visibility aroundworld. Our leadership in this theme multiplies our opportunities. The future of
the compressor industry should necessarily go through with lower energy consumption and smaller products besides
using electronics.
In 2011, Embraco initiates a new operation in Mexico. What is the role ofthis plant for the company’s strategicplans?

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The new plant reinforces the global
component of the company’s operations and represents another important
step in improving the services supplied
to our customers. In addition, the newplant is already being formed under theconcept of environmental responsibility. Both the architectural project andproduction planning were designed toreduce consumption of natural resources such as water and energy. These
concerns are present in all our units,of course, but the fact that the change
begins in the project allowed us to use
modern techniques and achieve moresignificant results. The reuse of water,
for example, will reach 90%.
THE FUTURE OF THE COMPRESSOR
INDUSTRY WILL GO THROUGH WITH
LOWER ENERGY CONSUMPTIONIn the environmental area, you already mentioned two focuses of thecompany’s operations: reducing thedirect impacts of production and thecommitment to energy efficiency. On
the social side, what role does thecompany intend to play?

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We operate in a society and we know our INNOVATION MUST MEET CUSTOMER
responsibility. We are committed to do- NEEDS AND IT MUST BE ACCOMPANIED
ing what is correct and legally appropri- BY SIMPLICITY
ate, while at the same time we want tocontribute to the development of communities. In all our units, we develop understand the solution we present andprojects with children and adolescents in be able to put it into practice.
the areas of education, health and environment. Each unit has the freedom to Is the company ready for another 40
develop their own projects depending on years?
the local need.
Absolutely. My certainty is based on
The focus on innovation is not new in corporate governance and the knowlthe company, and consistent invest- edge it has of the market. We alreadyment in this area was reflected in ma- have a consolidated history, a past. We
jor advances in 2010, such as micro have faced different market conditions,compressors, linear technology and and over the years, we have maintained
oil-free models. For Embraco, is inno- ourselves as the leader and have demvation a fundamental aspect for the onstrated ability to grow. With flexibility and planning we seek to anticipate
business’ continuity?
trends and prepare ourselves for the fuNo doubt, but we do not want innova- ture. We are prepared for another huntion for innovation. The most important dred years!
thing for us is to ensure that innovation
meets customer needs and that it is accompanied by simplicity. What makes
something innovative to succeed, besides being new and relevant, is to beJoão Carlos Brega
accessible to all. The customer needs to
President4Interview

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WHO WE ARE

We are world leaders in the manufactureof refrigeration compressors. Beyond the
production capacity (32 million units in2010), we are a reference in low energy
consumption models and we differentiate ourselves through our innovative
character, the result of continuous investment in research and development.

of leaks. Looking to the future, we havecreated and we are already testing micro-compressors, which could be used tocool electronic equipment and portable
items such as firefighter uniforms and in
the medical field. (To learn more about
linear technology and micro-compressors,see pages 21 and 22 of this report.)

In 2010 we were pioneers in the development of a new technology, together withthe company Fisher & Paykel, from New
Zealand, and the North American Whirlpool Corporation. The new compressor
combines high energy efficiency with alinear design, more compact, dispensing
the use of oil. Besides the obvious environmental benefit, the elimination of oil
multiplies product application possibilities because it can be placed in any position within the equipment without risk

Embraco is headquartered in Joinville,
Santa Catarina (Brazil), where it was
founded in 1971. In 2006, Embraco, until then a publicly traded company, went
through a reorganization that merged itwith the household appliance manufacturer Multibrás, forming in Brazil, Whirlpool SA, controlled by the U.S. Whirlpool
Corporation, shareholder of the two organizations since the 1990s. The two
operations, household appliances andcompressors continue to operate as independent business units while maintaining their specificities and peculiarities.

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Embraco Italy

Riva Presso Chieri
office and compressor factory
EmbracoNorth America

Suwanne, Georgia
warehouse and sales office

Embraco Slovakia

Spisská Nová Ves
office and compressor
factory

Embraco MExico

San Pedro García
officeEmbraco China

Beijing
office, compressor factoryand electronic component factory

Our units are based in six countries, from which we serve 80 markets on all continents. We havefour compressor factories, three factories for compressor componentes (parts and electronic
controls) and a foundry. In 2011, this structure will be expanded with the opening of a compressor factory in Mexico, which should add 2.5 million compressors per year to our production
capacity and enhance service to the North American market.
Embraco Brasil

Joinville, Santa Catarina
headquarters, office, compressor factory,
electronic component factory and foundry
Itaiópolis, Santa Catarina
component and cooling system factory

Production capacity: 32 million compressors per year
Employees: 10 thousand
Products: compressors for refrigeration equipment (refrigerators, wine cellars and coldrooms ), refrigeration systems and electronic temperature controls (for cooling systems)
Differentials: world leader in compress or market and benchmark in technology andenergy efficiency

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New brand

History

For us, being leaders in the refrigeration
market is the result of hard work, commitment, strategic vision and boldness
to innovate. But in the same way thatleadership represents the recognition
for what we already do, it also presents
itself in the form of a challenge: we needto anticipate trends, be ahead, lead theway and build today the company that
we want to be in the future.

Delivering Intelligent Performance:
We believe in what we do, we understand the market in which we operate and thereby deliver answers, manytimes to questions that did not even exist. Our intelligence is in the very close
relationship with our customers, in theinnovative solutions that we present, inthe restlessness that makes us moreagile in responding to different needs.

With our new brand positioning, launched
in July 2011, we seek to explain the essence of this whole process. Each of thevalues ​​of the new brand expresses the​​double idea of potential and challenge,
present and future, concrete reality andflexibility for evolution.

Cultivating Passion: We formed a teamof extremely talented people, passionate
about what they do, who have in their
DNA the spirit of winning, the drive toovercome and to innovate. We are proudof what we produce and of the compe-

1971 Foundation

In 1971, Empresa Brasileira de Compressores S.A.
– Embraco was created, built in Joinville, a city
located in the highly industrialized state of Santa
Catarina in southern Brazil. Three years later, in 1974,
operations began and the first compressors were
produced. In the first decade, we gave our first step
towards globalization. In 1977, we started exporting
compressors to Peru. A year later, the United States
and Canada entered the customer list.

tence that we find in the midst of somany diverse people and cultures.
Shaping the Global Scenario: We areleaders. Restless leaders, who understand the responsibility of our position.
We know clearly that it is us who guideand influence the world market. It is us
that reinvent, that transform ... But ourdifference is that we have an open mind
to the new, to cultural differences andthis makes us understand that there isalways plenty to learn.
Transcending the Future: Inspired byinnovation, we anticipate trends. Who
said it is impossible to transcend the1980 Technology independence

In the beginning of this decade, we enteredinto an agreement that would catapult andstimulate our capacity for innovation. In 1982,
we established the first technical cooperationagreement with the Federal University of
Santa Catarina. The idea was to develop ourown technology to improve production. In
1983, we formed the Research & Developmentarea. These two initiatives enabled, in 1987,

future? It is with this questioning spiritthat we invest in research and development in any economic scenario.
The concept of Power to Change is a
catalyst for all actions driven by thesefour values: as leaders, we want to mobilize people and drive change.
The new brand follows the company’s
evolution in recent years, at the sametime serving as a reference for what wewant for the future. More than a graphic
symbol, it reflects an evolution of thecompany’s culture and must be present
in everyone’s attitudes.

for the first compressor with 100% Embraco
technology to reach the market. In this year
we also participated in the UN’s Montreal
Protocol, which seeks to eliminate the useof CFC (harmful to the ozone layer) andopened a sales office in the United States.

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Corporate governance
Teamwork, integrity, respect, spirit of winning and diversity with inclusion are thevalues ​​that guide us in conducting business, and with solid governance structures we seek to create value for shareholders, customers, partners and society.
2010 was a year of changes in Embraco.
To give more agility to decision-making
processes, strengthen the strategic alignment and meet the new market challenges, we improved our internal structures,and in early 2011 we began operating under an even leaner and more agile model.
In the new structure, the Executive Committee, the main governance body, iscomposed by the presidency and four

vice-presidents. That bring together key
areas. Our goal was to put into practicea new mindset on how to manage thecompany, promoting a balance between
routine actions that ensure the results
today, with transformation initiatives
that ensure the long-term results. At thedirectorship level, and in all leadership,
the changes mean more autonomy andresponsibility for the joint construction of
the results.

PresidentJoão Carlos Brega

Vice president:
CFO and Human
Resources
Henrique Haddad

Vice president:
Business & Marketing
Roberto Campos

Vice president:
Operations, Management
and Sustainability
Lainor Driessen

Vice president:
R&D and
Procurement
Márcio Todescat

In this way, we seek to strengthen ourability to respond to the changing scenario and seize new opportunities of a
globalized and dynamic market.

1990 International operations

This was the decade in which we
consolidated ourselves in the international
market. In 1994, we hoisted flags in Italy, by
acquiring the Aspera compressor plant.
A year later, we became pioneers in creating
the first Brazilian joint venture in China,
Beijing Embraco Snowflake. In 1998, webegan operating in Slovakia.

We reached the mark of 50 million
compressors produced in 1990. Two years
later, the Brazil unit obtained ISO 9001
certification and started production for CFC
alternative gas compressors, pioneers in
Latin America. In 1996, we launched the
VCC, which revolutionized the market forenergy efficiency. In 1993, we made animportant decision for sustainability bycreating, in Joinville, the Embraco Ecology
Award, an incentive for environmental
education in learning institutions.
With the new acquisitions, by the end of
the decade, we reached the mark of 21.7
million compressors produced per year.

Interview

ProfileMonitoring
The Executive Committee oversees
Embraco’s economic, environmental
and social planning practice, the performance of the organization and theexecutives themselves. Assessments
are quarterly, guided by our five strategic pillars: revenue growth, technology
leadership, operational excellence, sustainability and people.
The Committee is also responsible for
identifying and managing issues related to adherence and compliance withadopted international standards in thecompany and internal codes and principles of conduct.

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Risks and opportunities
To manage and minimize risks every
six months we review the risk spreadsheet following the Enterprise Risk
Management methodology, which includes a description of each risk, theprobability of occurrence, the impact
if it occurs , activities to control it andthe areas responsible for monitoring it.
The same tool also guides the analysis
of opportunities within each strategicpillar. In 2010, for example, focusedon the sustainability pillar, the new
Mexico plant’s project, included reuseof water and thermal insulation of the
facilities as well as accessibility to people with disabilities.

2000 Continuous improvement

We have deepened the strategy of beinga global company. We opened a sales
office in Mexico and become signatories
to the UN’s Global Compact. In Brazil, we
began operating with the corporate nameWhirlpool SA, in 2006, the same year westarted production at a new factory in China.
In 2007, plants in Brazil, Italy and Slovakia
were certified by the QC 080000, which

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New factoryin Mexico
Moving closer toour clientsseeks to eliminate harmful substances fromthe environment. In the same year, Embraco
Snowflake was certified by ISO 14001. In
2003, we began the activities of Embraco
Electronic Controls (EECON) to produce
electronic components used in compressors.
Five years later, EECON opened a newfactory in China.

2010 A new revolution

In 2010, we launched the microcompressor,
revolutionary product in the market allowing
for the so-called portable cold. Furthermore,
we defined Embraco’s new brand whichshows how we want to be seen by the worldand how we are going to face the challenge
of being an even more global company.

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ETHICAL CONDUCTThe principles and values ​​that guide ouractions are brought together in the Letter of Organizational Values​​, the Code of
Conduct and the Code of Ethics, to which
all employees commit themselves. In
2010, we reinforced the presence of theCode of Ethics together with our networkof direct material suppliers, and most of
the partner companies signed the document and adhered to its precepts. (Formore information about this initiative andEmbraco’s work with its supply chain, referto page 22.)To ensure alignment of the entire company, we maintain Ethic Committees,
which receive complaints, queries andprovide information to employees. The
committees also encourage employees
to report any suspicion of irregularity toleadership, and we continuously train
leaders on how to act in these situations. General managers of the factories, the legal sector, Human Resourcesarea and vice presidencies can also be
contacted directly to receive and analyze complaints.

We value ethics and integrity in
all OF OUR relationships

Complaints can be made ​​by electronic
mail or even through calls made using
a specific line, ensuring the employee’s
anonymity. In the Brazilian unit there isalso a network of computer terminals
available, the Open Channel, wherequestions and suggestions can be sent
to the board.
From November 2009 to October 2010,
we received 14 contacts. The channels
mostly used were committees and the
hotline (telephone channel).

Work drivers
Mission:Offer innovative solutions for abetter quality of life
Values:Diversity with inclusion
Spirit of Winning
Integrity
Respect
Teamwork
Pillars:
Technology Leadership andInnovation
Operational Excellence
Revenue Growth and Value
Generation
PeopleSustainability

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Awards
Quality and Innovation
For the fourth time winner of the FINEPTechnological Innovation Award 2010,
sponsored by the Ministry of Scienceand Technology. The company ranked
first in the categories Innovation Management and Large Company, competing with 885 institutions throughout Brazil.
Third place in the ranking The Most
Innovative Companies in Brazil 2010,
conducted by the Época Negócios
magazine in partnership with the consulting firm AT Kearney. The survey involved 120 organizations of different
segments.
For the fourth consecutive year winner in the Ranking Champions of
Innovation 2010 in the category
Electro-Mechanics. The award is organized by the magazine Amanhã.

Professor Caspar Erich Stemmer
Award for Innovation in Santa Catarina
in the category Innovative Companyof Large/Medium Size. The initiative
is of the Foundation to Support Scientific and Technological Research ofSanta Catarina (Fapesc).
CNI Award (National Confederation ofIndustry) - Regional Stage for the Quality Control Circle – Opening New Paths(Anchor Ejector PW/4TM project).
Embraco’s performance won
several awards in 2010. Here are
the main ones

Social responsibility and bestpractices
Top of Mind 2010 – A Notícia newspaper and the MAPA Institute: Embraco
is the most remembered brand in social responsibility, environmental preservation and investment in culture.
Award of Best Strategic Cooperation
Project and Award of Innovative Supplier, granted by the Haier Group, in
China, to Embraco China.
Outstanding Economic Contribution,
given by the Administration Committee of the Economic Development
Zone of Beijing Tianzhu Airport to Embraco China.
Capital Civilized Company and National Excellent employees’ Home Award,
granted by the local government to
Embraco China.

Vice-Presidentof R&D and
Procurement Márcio
Todescat (right)
receives the Finep
Innovation Award 2010
from Finep Director
Fernando Ribeiro

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EmbracoWay of
Management

A company is like a living organism: itneeds to change, adapt itself and seek
strategies to overcome the challenges
imposed by the world. With Embraco
it is no different. We systematicallypromote improvements in how we conduct business by seeking to build value
for our stakeholders, to ensure a common language throughout the organization and to balance the short andlong term results.
As a methodology base for this search
we count on the Embraco Way of Management (EWM). With EWM, we want
to become more global and dynamic,
deepen relationships with our customers and be in sync with market trends.
We know that to achieve these results
strategic direction from top management is not enough. It is necessary to
provoke a cultural change, adjust the

MORE THAN 90% OF OUR EMPLOYEESRECEIVED TRAINING ON THE EWM

concept that we have of our company,
and ensure that the entire organizationinternalizes new processes.
The new management model was adopted in 2009, with leadership training,
and in 2010 was consolidated in thecompany. We disseminated the concept
to more than 90% of employees withtraining in administrative and manufacturing areas. Throughout the year, close
to 9,000 employees received specifictraining on the EWM, and the main concepts of the model have been reinforced
within the routine communication andstrategic alignment of the organization
at events like the annual LeadershipInterview

ProfileMeeting and the Strategic Dialogues,
which involve the Executive Committee.
To measure the efficiency with which
EWM is integrated into our routine, we
perform an annual assessment of the
WE WANT TO PROVOKE A CULTURALCHANGE AND ENSURE THAT THE
ENTIRE ORGANIZATION INTERNALIZESNEW PROCESSES

management model. On visits to theunits, we measure the adequacy of processes and results to EWM using a scaleof 0 to a thousand points. The 2010 assessment showed improvements in allunits, and we reached our goal of achieving a minimum of 650 points in all ofthem. The corporate area (which brings
together the company’s global management teams) stood out for the maturation in one of the essential aspects ofthe model, the cooperative work among
the teams. In 2011, our goal is to further
strengthen adherence to EWM and that
all areas reach at least 700 points in theassessment.

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Management byprocesses
In the previous management model,
but already incorporated into the EWM,
we created the Evolution project to redesign the processes of our entire organization. The goal is to ensure more
flexibility and agility to the company.
Instead of thinking in areas or sections
with determined responsibilities, we
prefer to see each of Embraco’s actions
as a complete process involving different teams in a harmonic way.
To fully understand this idea, we cancite the example of our innovation process. In the company, innovation is not
restricted to the staff of Research &Development (R&D), but counts on theparticipation of professionals from otherareas, such as employees from the factory and marketing. Thus, we can capture far more ideas and develop morecomprehensive and relevant actions.
The advantages of this new way of thinking about business are proportional tothe challenges that are required in implementing this cultural change, but since2008, when it was launched, Evolution
has visibly advanced. In 2010, we wereable to map and redesign six of the company’s 12 priority processes. In line with
our strategy to bring down the internal
walls and to think globally, the review initiative itself was an example of management by process. The work was carriedout in Embraco’s different units in theworld and involved managers and professionals from the company’s various areas.
Part of the finance process, for example,
was developed in Italy with the participation of teams from all units. In China,
we developed the first step in the People process. In Slovakia, we made important decisions about the supplies process. After diagnosis and defining where
we want to go, we began to implementchanges in 2011 and we expect to consolidate the execution of processes
throughout the year.

Flexibility and Agility in thecompany with the Evolution
Project

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Continuous
improvement

WE AVOID UNNECESSARY TRANSPORT
AND ADJUST OUR PRODUCTION TO
THE PACE OF CONSUMPTION

The Lean Thinking philosophy is our primary internal leverage in the effort forcontinuous improvement focused on
combating waste. Lean means light,
lean, without excesses. When applied to
our work, this concept means avoiding
unnecessary transport, eliminating reworks and adjusting production to thepace of consumption, without excess inventory. The results are clear: productivity increase, consumption reduction andefficient cost control.
To achieve Lean in practice we follow asemi-annual plan: the Value Stream Map,
which acts as an X-ray of opportunities
for improvements in different areas of
the company and indicates the degreeof priority for the action. Throughout theyear, each area manager convenes specific meetings to address each opportunity. There are kaizens (Japanese term
for continuous improvement), which last,on average, one week.

Lean philosophy contributes
to making the company more
efficient

In 2010, 478 kaizens were performed,
17% more than the previous year.
Among the concrete results, we had an
improvement of 10.1% in the parts perhour index, equivalent to implementing one production line, but without thecosts. Thanks to Lean, we also improved
production organization (layout of lines),
we raised levels of work safety and formally implemented the help chain in all
factories, a system that ensures a quick
response from the team in case of a
production stop.

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Collective
construction
Quality Control Circles (QCC), which
voluntarily unite employees with theaim of identifying opportunities for improvement and finding solutions to thefactories’ routine, worked as never before in 2010.
Our goal was to increase from 40% to
60% the number of employees who arepart of the QCC in Embraco Brazil. Mission accomplished. At the end of theyear 62% of professionals were part ofsome Circle in Brazil. There were 426
QCCs, 2,700 participants and 4,200
projects. In China, the goal was to reach45 groups, but the plant was able toform 63 teams and had the participation of 537 employees.
The increase in the engagement of teams
and employees in the QCCs is the resultof direct leadership action, which encouraged employee participation and madethem aware about the importance ofeach one in the company’s betterment.
The solutions found help to improve Embraco’s performance worldwide. In addi-

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Examplestion to improving the company’s routine,
the QCCs reinforce the commitment of
all with the results and the culture ofovercoming challenges. The contributionof the circles’ members has the company’s recognition: there are prizes, gifts
and opportunities to exchange information with other Circles.

Case: Brazil
The work of two Brazilian QCCs collaborated, for example, to achieve thegoals of reducing water consumption.
With the installation of a small piecein the faucets, it was possible to increase pressure in the pipe and reduce
the flow by 40%. In one of Embraco
Brazil’s component washing systems,
a simple change reduced water consumption from 384 cubic meters to
212 cubic meters per year - a savingsof 172 cubic meters, equivalent to theconsumption of 31 people during one
month1. The use of chemical products
also fell. From 236.64 kilos to 165.6
kilos, a reduction of 30%.
To achieve these savings, it was only
necessary to install inside the washing tank a smaller container, formatted to the task’s necessity.

According to the Foundation for Consumer Protection and Defense of São Paulo(Procon- SP), the average monthly consumption of treated water per person is 5.4 m3.

1

Case: China
In China, one of the groups had themission to develop an automatic
equipment to reduce the operators’
manual work, who need to remove
compressors from the production
line. Each piece of equipment weighs
8 kilos, and the repeated effort during each shift led many to give up

the job. The circle members createda sort of automatic “drawer”. In addition to the positive impact in thesatisfaction level with the work environment, the new system helped toincrease the line’s productivity.

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Concreteresults

Sustainability is one of the pillars of
our work. In business management, theconcept translates into reducing theenvironmental impacts of the production process and of products, encouraging best practices in the supply chain
and developing communities where we
operate. A common feature of all actions is education for sustainability that
we seek to promote in all relationships
with strategic publics.
With regard to products and investment
in communities, our history is long andfull of achievements. Our compressors
are highlighted globally for energy efficiency, which in practice means lower
energy consumption throughout theirlife cycle. (Read more about our initiatives in energy efficiency and innovation

on page 20.) In addition, we are innovating by creating new compressorsthat dispense the use of lubricant oil.
We are also systematically decreasing the amount of raw materials usedin the manufacture of compressors
and reducing the use of rare metals or
those which have few natural reserves,
like copper, for example. Our idea is toreplace them with lighter and moreabundant alternatives. The replacement process began some years ago
and brought good results in 2010. We
were able to produce 15% of all compressors using aluminum wire insteadof copper. In addition to the environmental benefits, the financial impacts
were immediate with significant costsavings. Our goal is to reach 2013 with
40% of our compressors being manufactured with aluminum wires.

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Sustainability in practice
Energy efficiency: saveenergy during the compressor’s useful life.
(Learn more on page 20.)

Reduce production
impacts: less material,
less water and energy
consumption, less waste
generated.
(Learn more below and on
pages 21 and 24.)

Social investment: drive
initiatives that take careof the environment andpromote health andeducation of children
and adolescents.

Supplier engagement:
encourage partners
to align with thecompany's sustainability
parameters.
(Learn more on page 23.)

(Learn more on page 25.)

Education for sustainability:
raise awareness and mobilize people, sowing a new culture for the future.
(Learn more on pages 23 and 25.)

Production process
In 2010, we moved firmly in reducing
the operation’s direct environmental
impacts, beginning with the efficient use
of water and energy. All plants exceeded
their targets of reducing energy, which
together meant a reduction of 9.1% percompressor produced. The performance
was the result of a balanced mix of investment in new equipment, review ofprocesses and awareness.

Also with an eye on the target, we expanded the applications of our waterreuse system. Previously, reused water served for irrigation of plants, toilet
flushing and reservoirs in case of fire. In
2010, we began to channel it also for
the factory’s cooling system. With thismeasure, the Brazil plant was able to reuse half of the water captured from thepublic water supply network.

In Italy, the solution was more profoundand required remodeling the plant’s
cooling system, which prevents machines from overheating. The Italianunit had cooling capacity for eight production lines, but only one was operating. Operation of the complete systemcaused waste. Once the problem wasnoticed, we resized the system to justone line, and the plant’s total consumption fell by 28%.
Still with a focus on managing the impacts of the production process, we perfected waste monitoring in 2010, andbased on the information gathered, weOperation

were able to draw up policies to reduce
the generation and ensure its correct
destination. We want to mature in thecontrol of these three items (water, energy and waste) to define our strategy
with respect to the emission of greenhouse gases.
All together, our initiatives have resulted
in water savings of 106.7 million liters.
It is enough for the daily consumptionof nearly 150,000 people for one year.
In energy, the savings was 32,376 MWh.
This is equivalent to an annual supply
of a small city with more than 12,000
inhabitants.

Water savings (l)Energy savings
(MWh)

%

Brazil

27,569,355.01

25,195.83

12.9%

Italy

52,490,817.90

551.27

1.7%

Slovakia

12,905,423.47

5,128.54

7.2%

China

13,724,154.24

1,501.08

3.0%

Total

106,689,750.62

32,376.72

9.1%

Interview

ProfileCommunity
The funding for social projects has matured since 1992, and in 2010 they
benefited approximately 25,400 people
in Brazil, China, Slovakia, Italy and theUnited States. (For more information
about our community investments, referto page 25 – Social investment.) These
are initiatives that promote education,
environment and health actions for children and adolescents.
In 2010, the Embraco Ecology award
completed 18 years. The idea of theinitiative is to awaken the new generation’s respect for the environment. This
year the award has something new: itbegan benefiting three competitors in
the Seed category, not only two, as it
was until 2009. In total, including theother categories there are eight winning schools.
The Embraco Ecology award is disputedby elementary and early childhood education schools in Joinville, Brazil. In thelast edition, there were 45 registeredschools. The winners, in addition to theQuero-Quero1 trophy, also receive finan-Management
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18

cial resources to be used in the implementation of their proposals.
Since 2009 we have also had the
Embraco Ecology award in Slovakia(learn more on page 26).
Supply chain
We have taken important steps to takesustainability beyond our walls and promote the alignment of the entire supply
chain. In 2009 we shared our Code of
Conduct with our direct materials suppliers (those that make up the final product) in the Americas, and in 2010 we extended the process to supplier networks
in Europe and Asia. Most of them (92%overall and 85% to 95% depending on
region) committed themselves to the
document and have already made ​​theself diagnosis of socio-environmental
practices. The next step, to be developed in 2011 and 2012, is to jointly construct action plans. (To learn more about
the actions developed in partnership with
suppliers and customers, see item Value
Chain of this report.)
Name of a Brazilian bird.

1

Company culture
The commitment to sustainability has
been part of the company’s practices
since 80s and has since been integrated into management. We have worked
diligently to ensure that the concept ispresent in all corners of the company,and year after year we have recorded
progress towards this goal. In the areaof ​​training and engagement of theinternal public, we took an important
step in 2010, with the cycle of leadership training in all operations.
This step is very important because
they will be the main agents for disseminating the culture of sustainability. The training was conducted withpresential workshops, with practical

exercises and discussions on our understanding of how to be a sustainable company. From now on, the concept will be disseminated in detail toall our employees.
To intensify the process of transforming our corporate culture and strengthen the formal side of our commitment
to sustainability, we have also inserted
the theme into the management tools.
The objectives related to the reduction
in water and energy consumption, forexample, are part of the company’s
indicator panel, and the achievementof the goals is directly reflected on the
results of various professionals’ performance assessment.

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Against the greenhouse effect
Our concern with sustainability also extends to the care taken to slow down
global warming, a result of greenhousegas emissions. Our search for solutions
to this problem focuses on two strategies. One of them is to develop products with greater energy efficiency. Indirect emissions of CO2 generated by theenergy production needed to operate
any cooling equipment represent 80%of the sector’s total impact on global
warming, according to the TEWI index(Total Equivalent Warming Impact).
Therefore, the less energy consumed,
the better it will be for the environment.
The other strategy is to reduce the direct impact of the gases used, and weare investing in cutting-edge research
to develop equipment that operates
with gases of less greenhouse effectpotential. Natural refrigerants, such as
propane, are increasingly used in commercial and air conditioning systems.
Our manufacturing technology forcompressors, lubricating oil free, also

Whilst investing in energy

New refrigerant
gases

efficiency, we reduce theenvironmental impact of ourwe invest in technology to
reduce the GHG emissionsof our products.

products in its entire life cycle

contributes in reducing the impacts on
the greenhouse effect, as it reduces theamount of gas used in the equipment.
In addition, we have a production line of
EK compressors, which use CO2 as its refrigerant gas. It may seem paradoxical,
since CO2 is considered one of the main
“villains” of global warming. But it isnecessary to understand that this gas isused as a standard impact measure on
the greenhouse effect because it is oneof the most present in the atmosphere,
but its potential effect can be more thana thousand times smaller than that ofconventional refrigerants such as R134.
In the case of fugitive emissions, when
there is the occasional release of fluid
refrigerants into the atmosphere during
the replacement of a component or due

to a perforation in the refrigeration systems’ line, for example, a ton of R134
causes a damage equivalent to 1,300
tons of CO2.
The demand for a CO2 based refrigerator was indicated by Coca-Cola, our partner in the project’s beginning, when thecompressors were used in the Beijing
2008 Olympics. This kind of change requires time and adjustment of the market itself, but we are looking to advance
this trend.

Innovation and technology
can contribute to slow down
climate change

Interview

ProfileInnovation andEnergy Efficiency

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Innovation
is in our day
to day life

The commitment to innovation defines
who we are, how we face the day-to-day
challenges and how we build opportunities. Formally speaking, it means thesystematic investment in research anddevelopment (3% of annual net sales)
and in the team of professionals dedicated to the subject (450 in total).
But our focus on the future is not restricted to one area or one process. It
is integrated into our business culture,with visible results in the quality andsuitability of our products and production processes and in the awards won.
(Refer to page 11.) Approximately 70%
of company revenues in 2010 were generated by new products launched from2007 to 2010. During this period, we
filed 97 patents (25 in 2010 alone) inmajor markets worldwide, shaping theportfolio of coming years.

Our compressors are among the bestin the world, and year after year weare moving forward in a cycle of continuous improvement, developing newtechnologies and anticipating demands to offer solutions that are eachtime more efficient and reliable for theneeds of customers in each of the markets where we operate.
In 2010, we applied Embraco’s VCC
variable capacity technology in commercial refrigeration equipment (refrigerated counters, refrigerators usedin supermarkets) already used in thedomestic segment.
In this case, the machine remains on
and adjusts itself to operate according
to the cooling demand, maintaining thetemperature constant. By avoiding theInterview

Profileon and off of conventional compressors, variable speed technology results
in a 35% energy savings with the same
cooling capacity.
Embraco VCC equips the world’s mostefficient refrigerators. In the most demanding markets such as Japan, forexample, it represents up to 40% of all

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equipment sold annually. In Embraco,its production has been reinforced.
In China, we expanded from 400,000 to
800,000 annual production capacity ofthis type of equipment in 2010, and in
May 2011 we will reach 1.6 million. In
Brazil the production line adaptations
will raise annual production capacity of
1.6 million to 2.4 million still in 2011.

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Constant evolution
Maintaining our products’ performanceexcellence is a dynamic process andrequires continuous improvement. We
want to improve always, and nothingis left out of this quest, even productsthat already stand out with the best results. In the VEM compressor line, forexample, each new generation of com-

For the environment the new technology makes it possible to save non-renewable resources in manufacturing

21

pressors is more efficient than the previous one. Equipment launched in 2010
consumes 17.34% less energy than thethree previous generations, launched in
2003, and the evolution process continues. In 2011, we have already launched
a new generation, reducing consumption by 4% compared to 2010.

4%

New technology
and reduce the risk of contaminationin product disposal. For customers,
the main direct advantage is the application flexibility: the compressor
can be used in any position inside theequipment.
The Linear Oil Free underwent tests
in customers in 2010 and in 2011 isalready being manufactured in a pilot
production line installed in Embraco
Brazil. In total, the project involved
the filing of 82 patents. To reach the
production stage has been the resultof five years of research and an investment of US$ 20 million.

4%

2.11
7%

EFFICIENCY w/w

In partnership with the New Zealand company Fisher & Paykel andthe Whirlpool Corporation, Embraco
launched a new technology in 2010
with the Linear Oil Free compressor.
In addition to combining the most efficient option in terms of energy consumption (variable speed technology)
with a linear and lean design, which
multiplies the application possibilities, the product also eliminates theuse of lubricating oil for its operation.

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2.03
1.96

6%

1.83
1.73

Vemy

VemZ

VemX

VemC

Vem
DS

2003

2006

2008

2010

2011

Interview

ProfileWe have built knowledge
partnering with universities indifferent parts of the worldPartnership work
We innovate very much, but not alone. In
order to develop high energy efficiency,
sustainable products which meet needs
and expectations we maintain partnerships with universities in several countries, in projects that mobilize hundredsof people in knowledge production andsharing. The Federal University of Santa
Catarina has a special role in this joint
construction, with the POLO Laboratory,
from the same university, dedicated torefrigeration and concentrates many ofthe development initiatives.
The union between academia and Embraco is also reflected in the labor market, with benefits for both parties. About
40% of the professionals working in thecompany’s ​​Research & Development(R&D) area had their potential identified
while carrying out projects together with
universities.

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Portable cold
Can you imagine a portable compressor,
the size of a permanent marker, able tomaintain a comfortable temperatureinside the uniforms of those working in
extreme conditions such as firefighters,
miners or military? Or cooling electronic
devices that do not permit the use offans? We can.

We started imagining, believing, andfor six years of work we invested time,
staff and resources to make the microcompressor project, a reality. The firstsamples went into tests in customers at
the end of 2010, and the pilot production line begins operating in the second
half of 2011.

The microcompressor has the potential
to revolutionize diverse segments of thecooling market and offer an option thatis more practical, easy to use and with
better results. The new equipment is
two to three times more efficient (consumes less energy for the same thermal
result) than the thermoelectric technology, currently used in most applications
intended for the microcompressor.

The productTwo versions: .7cm diameter X 11 cm (the size2of a permanent marker) and .0 cm diameter X 14 cm long5
(smaller than a can of soda)
Applications: personal cooling, ele­
ctronics, medical equipment, au­tomotive areas

Uses battery: portable il free: application flexibility, reO
duced consumption of a non-renewable material, reduced environmental impacts at the end of
useful life.

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ProfileManagement
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Engagedsuppliers

Exercising our role as leaders, we wantto encourage other agents of the production chain where we operate andstimulate them to adopt sustainability
initiatives. This is a work that must be
built step by step, based on partnership and joint construction. In 2010, we
completed the distribution of codes ofconduct to all direct material suppliers(those used in the final product). Amongthe suppliers located in the Americas,
the compliance rate was 85%, in Europe
94% and reached 95% in Asia. In the entire network, compliance was 92%.

We also began mapping our partners’
compliance level to various socio-environmental parameters. Each company
was invited to complete a questionnaire
about labor practices, respect to humanrights and environmental management,
among other topics. The self-assessment was answered by 85% of suppliersin Asia and 95% of those based in Europe and the Americas. With this study
in hand, we can help them constructimprovement plans, and the critical suppliers will have periodic monitoring toassess progress.

92% of our direct material

Since 2008, the certification of new suppliers, which already covered the assessment of quality control and processes,

suppliers have formally joined
our code of conduct

Interview

ProfileManagement
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Sustainability

EnergyEfficiency

VALUE
CHAIN

Socialinvestment

No wastebegan to include issues related to sustainability, such as managing hazardous
substances and the proper training of
employees. In 2012, the plan is to include
the same criteria for periodic audits. In
this way, we want to make it clear to allpartners how much the commitment tosustainability drives our business.
Encouragement and recognition
In annual meetings with suppliers, when
we assess improvements and business
opportunities, the commitment to sustainability is always part of the discussion and motivates the exchange ofexperiences. In 2010, the theme also inspired the holding of a special meetingin Brazil, with lectures and workshops onsustainability in the supply chain.
We further seek to value the initiativesof partners who are more engaged and
We encourage our partners
in adopting good social andenvironmental practices

committed to our common goals. An
example was the Supplier Sustainability Award, sponsored by Embraco China
2010. A multidisciplinary team fromthe company analyzed documents andevidence from 10 companies with thehighest scores in the self-assessment
and the winner was the company Roshow Technology Co. Ltd.

With the Top Green program, we reduce
the generation of waste and promote
recycling of raw materials such as steel,copper, iron and aluminum. The program
encourages refrigeration technicians tocollect used compressors and deliver
them to shops accredited by Embraco.
Participation in the initiative earns discounts on new compressors. For thecompany, it means an increase in the
supply of raw materials, and for the environment, it means keeping non-renewable materials in the production cycle.
In 2010, Top Green assured the reuseof materials from 389,486 compressors. The steel and cast iron are recycled
directly in the foundry and copper andaluminum are sold to suppliers and reprocessed. Nothing remains.
The compressors’ lubricant oil is also recycled. In 2010, there were 116 liters. In
addition to reducing waste the program
prevents the risk of improper disposal of
the compressors.

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Reused materials – 2010
Copper Wire
360 tons

Cast Iron
696 tons
Oil
116 liters
Aluminium
53 tons
Steel Sheets
2,592 tons

Total: 389,486 compressors

Interview

ProfileSocial investment
and community

Management
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People first

We work to improve the efficiency ofour products to increase the company’s
revenues and to be recognized by the
global market, but we also work (and alot) to improve people’s lives, especially,
those that live in the communities near
our six plants.
We have a global social policy that is always being revitalized. The 2010 target
was to increase by 10% the number ofbeneficiaries. We achieved the target
and surpassed it with ease. More than
25,000 people have been impacted by
Embraco’s social investment actionsin Brazil, Italy, Slovakia, China and theUnited States.
We mobilized our employees for morethan 2,000 hours of voluntary initia-

tives. We have made the difference in all
countries where we operate.
One example is the project “Prove –A Different Day” held in the communityof Paranaguamirim in Joinville, Brazil,
which has one of the worst Human Development Index (HDI) of the city. About
70 employees and family members
worked for days in the location, alongwith members of nongovernmental organizations, schools and neighborhood
residents’ association.
In 2010, our social investment
initiatives and volunteering
programs have benefited morethan 25,000 people, making a
difference in the community

Interview

ProfileTogether, we created a community vegetable garden, where once stood a vacant lot, we cleaned some streets thatused to be a place to discard trash, andwe reformed the neighborhood school.
In the school, the participants painted
the walls, made the recreational space
more beautiful and tidied up the children’s playground.
Embraco Ecology Award
has boosted the awarenessinitiatives regarding waste
in a school in Slovakia

Waste management
The Povýšenia sv. Kríža, Smižany school
won the 2010 edition of Embraco Slovakia Ecology Award with a project toraise awareness about waste and to
implement internal management systems. Teachers and students involved
the waste generation theme in different
disciplines such as science, mathematics and Slovak. The importance of separating materials even inspired the creation of a poem. In one of the activities
outside the classroom, students went toManagement
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Sustainability

the region’s landfill. There, they collected samples of small animals to examine
the level of contamination and measure
the damage that the waste can cause
to the environment, in the school’s laboratory. The proposal drew so much attention that a Slovak television station
broadcasted ​​a report on the project.
Supporting local art
Our presence in the community extends to encourage artistic expression.
In Joinville, in Brazil, we supported the
publication of an illustrated book, broadcasting of a radio program on jazz anddance performances.
Seven cultural projects approved by the
Cultural Foundation of Joinville, Brazil,
received benefits through the Municipal
Patronage Law – a fiscal incentive fromcity hall.
We also renewed the partnership with
the Bolshoi Theatre School, throughthe Rouanet Law. Close to 90% of morethan 200 students receive full scholarships, as well as uniforms, transportation, food and medical care.

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In the United States, weorganized a task force toclean streets and sidewalks

Cleaning streets
In the factory in the United States weput into practice the Adopt a Road project, which promotes the cleaning ofstreets and removal of trash and debris
from sidewalks. There were four collective cleanup actions throughout theyear, held every Saturday in Suwanee,
where Embraco is located. The work is
quick, but intense. In less than one hour,the volunteers collected about 400 litersof trash, especially fast food packaging.
Energy efficiency to the community
The More Energy for Our Health projectdelivered 69 refrigerators to hospitals
in Brazil and Slovakia and to schools in
China. The objective of this initiative isto reduce the entities’ electric bill andimprove the preservation of vaccines,
food and other products that require
quality refrigeration.

More Energy
for our Health
69 refrigerators
distributed in Brazil,
Slovakia and China

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ProfileManagement
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Volunteers from
Embraco Brazil
teach workers froma local hospital how tofight fire using thecorrect equipments

Sustainability

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Embraco goes to the hospital
For seven months, volunteers from Embraco Brazil worked together to improvethe management of the São José Municipal Hospital, in Joinville, in southern
Brazil. About 60 employees devoted,
each one, more than 30 hours to discover and develop management practices to improve the entity’s service tothe population. The initiative was a voluntary action designed to involve thecompany’s leadership.
Among the volunteers were professionals specialized in various areas such as
health, safety and quality coordinating actions on six workstreams: Inventory Management, Quality Management,
Waste Management, Fire Brigade, 5S
Program and Kaizen Processes.

Our volunteers are mobilized
in all of the countries where
we are present

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One team, for example, chose to act
in the bidding process for supplies andmedicines. Volunteers estimate thatthe time spent on the bidding process
could fall from 120 to 67 days, thanks
to the knowledge transfer on the useof Embraco’s kaizen tool, which aims tostreamline the work.
Volunteers also applied a new methodology for inventory management, which
improves control of receiving and dispatching materials. The methodology
was applied in the hospital’s pharmacy
and in the storeroom following the sameprocess used by Embraco.
Italy and China
Volunteers also worked with great motivation in Italy and China. In Italy, theMy Ecological School project counted
on six volunteers who, for three months,
provided support to over 60 students
from the Scuola Media Quarini di Andezeno. The project’s idea is to bring environmental education to a city school

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through Embraco volunteers who are
specialists in different subjects.
Under the program, the content of activities is jointly created between theschool and volunteers and the activities
are carried out during class time.
In China, our volunteer program called
Warm Hands, in 2010, gathered 61 volunteers, totaling 491 hours of work. In
one of the institutions in which we operate, Sun Village, volunteers tutored, told
stories to students, helped teachers andcared for children whose parents are inprison. In total, 980 people were benefited from the project.

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Global company

From early on, our history has beenmarked by the ability to break barriers and expand our boundaries. We
began expanding our market, with exports starting in the 70s. In the 80s webrought down the technological barrier
and in the 90s, driven by the market’s
challenges and opportunities, we began
constructing a global company.
The search for growth opportunities, strategic location, technology, professionals
or raw materials led us to different partsof the world. We have units in six countries and sell to 80 countries. In today’s
Embraco, there is much of Brazil, China,
Italy, Slovakia, Mexico and the UnitedStates and of the different ways to see
the world in each one of these countries.
We want to ensure that this cultural richness helps us build the Embraco of the
future, and this goal is reflected in ourpeople management strategies.

We are building a broad concept of diversity which aims to recreate in our
offices and corridors the cultural diversity that exists in the world. We want
to deepen the internationalization ofcareers. This means taking Chinese to
Brazil, Brazilians to Italy, Italians to Slovakia ... In this way, the global culture will
be much closer to our employees andwill help us understand the world’s othercultures and demands.
We strive to create internally a diverse
work environment, which values ​​anddevelops the different potentials, in a
strategy that matures and consolidates
day-to-day in the company. In 2010, forthe first time, we now have a local employee in the factory’s highest position.
It is in Slovakia, where Norbert Brath assumed the directorship. (See his interview
on next page.)

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A Slovak director
Norbert Brath is a mechanical engineer, born in 1977, in Nitra, in western Slovakia. Since joining Embraco in
2000, he has built a solid career andhas invested in growth opportunities.
He was Production Planner, Quality
Leader and R&D Manager, and in 2010
became the first career professional ofa factory to take over the directorship.
Norbert Brath is partof Embraco’s team since2000 and, in 2010, became

How does it feel being the first career
professional of a unit to take on the
directorship of a factory in Embraco?

the director of Embraco
Slovakia

Embraco is a global company that offers opportunities to all employees,
no matter the nationality. We have
many examples of this. We have an
Italian colleague leading logistics
processes and the Embraco Mexico
project counts on the participation ofpeople from other plants.
It is a great honor for me and at thesame time I feel an immense responsibility to manage a unit with morethan 2,000 employees. I am very hap-py with this opportunity and I will givemy best to meet expectations. I counton a very strong management team.
We’re going to support each other andcontinue to grow as a team.
What are the main challenges in yourposition?
The main challenge is dealing withpeople of different languages ​​and cultures. About this it is great that Embraco is implementing a rotation system among the plants. For example:
today our R&D Manager, in Spisska, isBrazilian. Last year we had a logistics
colleague who was from the UnitedStates. I had the opportunity to work
for six months in Brazil, understanding the culture, people, processes, andlearning the language.
A strong point of Embraco is the investment in people’s potential. Thereis always someone who can help contribute, and everyone has the opportunity to develop and to grow.

What are your main goals?
The main objectives for Embraco Slovakia in the coming years are to complete our vision of being a model company in all aspects of the business inwhich we operate. We need to deliver
values to all stakeholders, produce
products of impeccable quality, improve the level of our services to consumers and continue to develop thecompetencies of our internal public.
We will continue to grow our cooperation with the community in the fieldof sustainability and corporate social
responsibility.

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ProfileManagement
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Sustainability

Future talents
The Trainee Program, which captures
young professionals with high potentialfrom the market, was revamped in 2010,
with the increase of training hours andinclusion of international development
opportunities.

2011. After the internship, if the professional complies with the requirements
needed and shows to be a talent for theorganization, we may invite him/her tostay in the company, whether in theirhome country or in any of our units.

To the participants who best performtheir functions during the program, weare offering an opportunity to lead thecompany’s projects in other plants. Thismeans a rapid and excellent chance tostart their global careers.

Health and Safety
Our employees’ health and safety is apriority, and in 2010, several operations
surpassed the mark of 2 million hours
worked without accidents with days
away (see table).

In 2010, we also entered into a partnership with a well-known international entity, AIESEC, a non-profit institution present in over 100 countries that promotes
professional exchange of students andyoung professionals.

Our factories have OHSAS 18001 certification, the main international standard
for occupational health and safety management and year after year we seek
to improve our internal procedures. The
theme is present in the team trainings,
starting in the training carried out inthe integration of new employees, andis reinforced in periodic campaigns forawareness and engagement.

Embraco China has already received two
young Brazilians. Embraco Brazil hosts
an Italian in Human Resources and aChinese will start her activities in communication beginning in September

EnergyEfficiency

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Internal
PublicIn 2010, we conducted audits of the
Global Standards of Health, Safety andEnvironment in the Brazil and China
units and began the implementationof the Hazardous Energy Identification
and Block program. We also started theglobal BBS program (Behavior Based
Safety). In the first step, we performeda diagnosis of all units to identify thestrengths and opportunities for improvement in behavior on safety issues.

30

improvements, we have begun
a global project of behavior
based safety

Slovakia

2,000,605

China

2,016,150

EECON

2,653,252

Brazil (Joinville – compressors)

2,672,543

Brazil (Itaiópolis – compressors)

5,960,375

Totals registered in 2010.

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With focus on continuous

Hours worked without accidents with time away1

1

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Interview

ProfileValuing and recognition
Our Profit Sharing Program (PPR), which
rewards performance against pre-established goals, was perfected in 2010 tobecome even more attractive and adjusted to the specificities of the different teams. The idea was to align it withthe market and to value those who perform in accordance with the company’s
culture and pillars. We also created abonus program for the corporate area.
This brought the managers even closer to the company’s global goals anddeepened their commitment to achieving results. Thus, the objectives became
clearer, increasing the efficiency of ourefforts to reach the best final result.
To further clarify the responsibility ofeach one in the company’s results, theleadership promoted periodical conversations with the teams and discussed
the application of global goals in thework routine.

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Our variable salary programs
value the efforts of everyonein achieving our objectives
and goals

Multiplying opportunities
Throughout the year, we held threemeetings of the Gender Forum in Brazil.
In these meetings, we discussed issues
about the differences between men
and women. The idea was to deepen
the knowledge of the characteristics ofeach one, from the way of thinking to
the health and emotional differences ofeach one.
We also promoted meetings for women
only. Baptized as Roundtable for Women
Leaders, the dialogues were attended by
20 people. This time was very useful forthem, since the majority of the employees are men. With the roundtables, thewomen took the opportunity to debate
this issue openly, commenting on theirperceptions, limitations, and detecting
opportunities for improvement.

A good place to work
In Slovakia, we participated in a study
organized in 2010 by the consulting
firm Hewitt Associates to assess theclimate of companies in all European
Community countries, with 43 just in
Slovakia. The survey was focused on
employee engagement and the levelof satisfaction with people management practices. The consultancy analyzed the employee satisfaction in theareas of people, work, compensation
and benefits and quality of life.
Embraco’s unit was one of the top 10
companies surveyed in Slovakia, andranked second among large companies. From the results of the survey,
we identified opportunities for improvement and we have already begun an action plan.

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STRUCTUREDPROCESS

Since 2005, when we adopted the Global Reporting Initiative (GRI) methodology (to learn more about this metodology
and its application on this report, refer topage 36) as a base for developing oursustainability report, we have sought toimprove the publication every year, focusing on the quality of the indicatorsand in establishing a historical series of
information that allows the reader toobjectively evaluate our trajectory. As
part of this pursuit for constant improvement, we conducted this year, for the
first time, a structured process to define
those material themes for our business
when it comes to sustainability.

The definition of material issues
focuses on management andcommunication of sustainability

To construct the materiality matrix wecounted on the support of an outside
consultant, who based the work on two
guidelines. The first is the AA1000 standard – Accountability Principles Standard 2008, which focuses on consultation and engagement of stakeholders
and was developed by AccountAbility, aBritish non-governmental organization
specialized in these themes. The otherreference was the GRI methodology

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3.00

the company’s vision, sector
drives and stakeholders’ opinion

As component elements of the matrix,
we have used: national and international studies, our principles, internal
codes and strategic plans and consultations with specialists and two of our
key stakeholder groups, employees andthe community. (See the complete list on
page 35.)

Eco-efficiency
External axis (society)itself, which in addition to guidance on
the construction process, also provides
guidance on the use of the result ofmateriality in the sustainability report.

Sustainable energy solutions

2.00

Respect and valuing diversity
Ethics in business
People development and training
Minimize environmental impact

1.00

Health and Safety
Product quality and customer satisfaction indexes

Results
Through the process, we defined the 10
key themes for Embraco, available inthe matrix aside.

Development of products with lower environmental impact
Recycling

1.00

2.00
Internal axis (Company)

3.00

Interview

Profile“The issues raised by the
consulted stakeholders arealigned with our sustainability
vision and will be considered forthe definition of our strategy.”“We believe this first
consultation is an importantmilestone for the company and
we understand that the process
should be deepened in the coming
years in order to strengthen therelationship with our publics
and improve the incorporationof society’s demands into ourbusiness.”
Lainor Driessen
Vice PRESIDENT OF Operations,Management and Sustainability

Management
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Sustainability

Application
The process of defining materiality was
conducted in parallel with the preparation of the report, without affecting
the previous selection of GRI indicatorsthat would be reported, which is basedon our historical reporting. However,in the final stages of publication, thethemes defined guided the selectionand editing of the content and we seek
to give consistent responses to each ofthem (see table).
In addition to giving focus to sustainability reporting, the definition of materiality
will serve to improve the managementof the theme in the company. Based on
the results, our four vice-presidents considered priorities five of the themes. They
are: eco-efficiency and minimizing theenvironmental impact of operations;products with lower environmental
impact and high energy efficiency; respect and valuing diversity; quality of
products and services and customer
satisfaction; and health and safety.

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These themes will be deepened by thecompany’s leadership globally so thatwe plan and implement concrete actions with a focus on each of them.

MATERIAL THEME
Eco-efficiency

PAGES

17, 20 and 21

Sustainable energy solutions

20 and 21

Respect and valuing diversity

28, 31 and 54

Ethics in business
People development and training
Minimize environmental impact
Health and Safety
Product quality and customer satisfaction indexes
Development of products with lower environmental impact
Recycling

10
30 and 53
16, 17 and 19-21
30 and 57
4, 20 and 57
20-22
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Matrixcomponents
Studies and publications
In the process’ first stage, the analysisof studies on sustainability in the supply
chain has enabled us to define the 37
themes with the greatest potential impact on our business. Organized in the environment, community, employees, suppliers, customers, business management
and government macro-issues, this list
served as the base for the evaluation of
all information sources used in the matrix.
Supply Chain Sustainability: focusedon the impact of a companies’ supply chain for sustainable development,
showing the main critical issues andsuggestions for action. The material
was developed by the Global Compact,a United Nations agency for companies that are committed to social responsibility practices and by the BSR,
an organization that brings together
over 250 companies worldwide to develop business strategies for sustainability. It was released in 2010.

Development with Less Carbon –Latin America Answers to the Challenge of Climate Changes publication
developed by the World Bank in 2009,
which demonstrates the impact of human activity to climate changes andalternatives for building an economy
with less environmental impact.

 nalysis of internal documents that deA
pict the company’s formal commitment
to sustainability: Letter of Organizational Values​​, Code of Ethics, Embraco Leadership Agenda 2011, Embraco Supplier
Code of Conduct, Information Disclosure
Policy and Social Responsibility Management Manual. Weight: 50%

 AM Sustainability Yearbook: publicaStion launched in 2011 with sustainability practices and cases in 58 sectors.
The material was produced by Sustainability Asset Management (SAM), theinvestment group focused exclusively
on sustainable investment.

External axis
Composed of three elements with different weights:

Internal Axis
Two elements, with equivalent weights
in the composition of the matrix:
Interview with our President, João Carlos Brega, focused on the company’s
strategy and plans. Weight: 50%.

 urvey with employees: counted on theSparticipation of 70 professionals fromthe company in Brazil, China, Slovakia,
the United States and Italy. Weight:
50%. We seek a balanced blend of
employees from administrative andproduction areas, and this criterion directed invitations for participation andthe form to present questionnaires (inan online and printed version, to ensure participation of areas that do nothave computers).

The decision to consider the internal public in the external axis of the matrix aimed
to identify their opinion as individuals,
with their own and independent opinionsof the organization.
Interviews with specialists: to give an
in-depth and technical view about Embraco’s challenges related to sustainable development, four specialists wereconsulted on issues of product life cycle,
sustainable retailing and role in the community. Weight: 25%.
Interviews with community representatives: our company has a strong connection with the community, due to the number of employees, economic impact in theregion and relationship. In order to present
their views on the company’s operation,
we consulted representatives of three organizations: United Nations Development
Programme (UNDP), Department of Social
Welfare in Joinville (Santa Catarina, Brazil)
and Department of Education of Joinville(Santa Catarina, Brazil). Weight: 25%.

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36

GRI Application Levels

The publication followed the Global Reporting Initiative (GRI) G3 guidelines,
the leading global benchmark in sustainability reporting. According to our
self-assessment of Embraco, the report
reached an application level B of theguidelines, with complete or partial response to 24 core performance indicators and 3 additional performance indicators. (See next page.)

C

Report content

The definition of the publication’s content was guided by a materiality process
conducted by an external consultancy.
(More information on pages 32 to 35.)

EnergyEfficiency

G3 Profile

Respond to 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 and 4.15.

G3
management
approach

Not required.

G3 Performance
Indicators &Sector Supplement
Performance Indicators

Respond to a minimumof 10 performance
Indicators, including atleast one of each of thefollowing performanceareas: social, economic andenvironmental.

C+

B

B+

Respond to all criteria listed
for Level C plus:
1.2,
3.9, 3.13,
4.5 to 4.13,
4.16 and 4.17.

Information on theManagement Approach foreach indicator category

Respond to a minimum of
20 performance Indicators,
including at least one ofeach of the following areas:
economic, environmental,
human rights, labor practices, society and productresponsibility.

A

A+

Same as requirement forLevel B

Management Approach
disclosed for each indicator
category.

Respond to each core G3and Sector Supplement
Indicator (whenever there
is a final approved version)
with due regard to themateriality principle of oneof the following forms: (a)responding to the indicatoror (b) explaining the reason
for the omission.

With External Verification

Methodology

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ParcialGRI Items
Strategy and Analysis
1.1Statement from the CEO or president-director about the relevance of sustainability to the organization and its strategy.
Refer to pages 3 and 4.

1.2

Description of key impacts, risks, and opportunities.
Refer to pages 3 and 4.

Organizational Profile
2.1

Name of the organization.
The organization’s name is Whirlpool SA, and Embraco is how we are known in the market.

2.2

Primary brands, products, and/or services.
Refer to page 6.

2.3

Operational structure of the organization, including main divisions, operating units, subsidiaries, and joint ventures.
Refer to page 6.

2.4

Location of the organization’s headquarters.
Joinville, in Santa Catarina (Brazil).

2.5

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to sustainability.
Refer to page 6.

2.6

Nature of ownership and legal form.
Refer to page 5.

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
Refer to page 6.

2.8

The company’s size (number of employees, net sales, total capitalization, total assets).
Data on the total number of employees are on page 50. As we are a business unit of Whirlpool LAR, our financial information is not disclosed separately. To know the consolidated
data of Whirlpool Latin America, see the electronic address http://www.whirlpool.com.br/investidor.aspx.

2.9

Major decisions during the reporting period regarding location or changes in operations, including opening, closing and expansion of operational units.
Refer to pages 3, 4 and 6.

2.10

Awards received.
Refer to page 11.

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Report Parameters
Report Profile
3.1

Reporting period covered by the report.
We seek to focus the report in the period from January 1 to December 31, 2010, especially with regard to the GRI performance indicators. However, in some sections of thetext, to give greater context to information, allow a broader analysis of the trajectory or to add data in relation to goals and future projections, we do not follow this temporalparameter. All cases in which this occurs are easily identified, and the time period to which the information relates is clearly specified.

3.2

Date of the previous report.
2009.

3.3

Reporting cycle.
Annual.

3.4

Contact point for questions regarding the report or its contents.
Refer to page 61.

Report Scope
3.5

Process for defining report content, including the process for determining materiality and prioritization of issues within the report and identifying the stakeholders thatthe organization expects to use the report.
Refer to pages 32-35.

3.6

Boundary of the report (countries/regions, divisions/facilities, joint ventures/subsidiaries).
We included all Embraco units which were in operation in 2010, during the reporting period. In order to know what these units were, see page 6.

3.7

Statement of any specific limitations on the scope of the report.
In response to all indicators, we seek to follow the defined scope for the report, consolidating the data by country to allow a more detailed analysis. However, many of the information
relating to performance indicators are more relevant in the manufacturing units and, therefore, our monitoring systems do not cover commercial operations in the United States and
Mexico. For being very small units, with 63 and 6 employees, respectively, we believe that the absence of the information does not compromise the accuracy of the account.
Furthermore, we present specific data on these units where it was possible to collect the information.

3.8

Basis for report elaboration relative to joint ventures, non-integral subsidiaries, leased facilities, outsourced operations, and other situations that can significantly affectcomparability between periods or between reporting organizations.
As stated in items 3.6 and 3.7, whenever possible, the indicators cover all the operations, not having, therefore, the risk of affecting comparability.

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicatorsand other information in the report.
The responses to the performance indicators follow the GRI protocols with respect to data measurement techniques and compilation, and are based on our internal monitoring
systems. The cases in which the values ​​come from estimates are indicated in the text.

3.10

Explanation of the nature and consequences of any restatements of information provided in earlier reports and the reasons for such restatement
There was no restatement of data, but the Report 2010 corrects misinformation that had been disclosed in the 2009 publication in relation to company performance on
indicators EN8 (page 45) and LA13 (page 54).

3.11

Significant changes compared to previous reporting periods in regards to scope, boundary, or measurement methods applied in the report.
Although there has been no change in basis of calculation, measurement techniques and scope adopted, the report reflects the increase in business registered by the company in 2010.

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3.12

Table identifying the location of the standard disclosures in the report.
Refer to pages 37-57.

Assurance
3.13

Policy and current practice with regard to seeking independent verification for the report. If not included in the opinion accompanying the report, explain the scope andbasis of any external verification provided, as well as the nature of relationship with the auditor.
The information disclosed did not have an audit

Governance, Commitments, and Engagement
Governance
4.1

Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy ororganizational oversight.
Refer to page 8.

4.2

Indicate whether CEO or the Chair of the highest governance body is also an executive officer (and, if so, in which function and the reasons for this arrangement).
Refer to page 8.

4.3

For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent or non-executive members.
There are no independent or non-executive members.

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
Whirlpool SA, which includes Embraco`s operation, holds annual meeting with shareholders and offers on its website, a telephone channel and an e-mail address to receive
recommendations. For more information, visit http://www.whirlpool.com.br/investidor.aspx
On Embraco`s day to day, employees submit suggestions via the ombudsman, the Open Channel.
In order to inform staff and stimulate them to be part of strategic business decisions, we conducted a large annual meeting (Leadership Meeting), which brings together at thecompany`s headquarters the leaders of the operating units worldwide. In addition, each area of the​​ company carries out alignment meetings with varying frequency. In the
Procurement area ,​​ for example, meetings are annual, and in Communications, biennial.

4.5

Linkage between compensation for members of the high management body, senior managers, and executives (including departure/decision arrangements), and theorganization’s performance (including social and environmental performance).
The variable remuneration systems, described on page 31, are focused, especially, on economic targets, ensuring coherence between the evolution of the company’s performanceand leadership compensation.

4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided.
Refer to page 10.

4.7

Process for determining the qualifications and expertise of the members of the highest governance body for defining the organization’s strategy, including issues related
to economic,environmental, and social performance.
Refer to pages 8 and 9.

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4.8

Internally developed statements of mission and values, codes of conduct, and principles relevant to economic, environmental, and social performance, as well as thestatus of their implementation.
Refer to page 10.

4.9

Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including
identifying and managing relevant risks and opportunities, as well as adherence or compliance with internationally agreed standards, codes of conduct and principles.
Refer to pages 8 and 9.

4.10

Processes for evaluating the highest governance body’s own performance, especially with respect to economic, environmental, and social performance.
Refer to pages 8 and 9.

4.11

Explanation of whether and how the precautionary approach or principle is used by the organization.
We do not fully adopt the precautionary principle, but we seek to act with environmental responsibility by eliminating from the products and processes substances proven harmful
to the environment.

ParcialCommitments to external initiatives
4.12

Externally developed economic, environmental, and social charters, sets of principles, or other voluntary initiatives to which the organization subscribes or endorses.
Since 2004, Embraco is a signatory to the Global Compact, a movement led by the United Nations (UN), which promotes social inclusion, environmental sustainability andreducing inequality. In 2008, Embraco Slovakia also adhered to the initiative.

4.13

Significant participation in associations (such as industry associations) and/or national/international advocacy organizations.
CAP – São Francisco do Sul Port Authority
Among the main entities in which we participate, we can mention:
CEACEX – State Council for Foreign Trade Advancement
ABINEE – Brazilian Electrical and Electronic Industry Association
CEAJ – Joinville Architect and Engineer Center
ANPEI – National Research, Development and Engineering Association of Innovation
CEBC – Brazil-China Business Council
Companies
CIESC – Center of Industries of the State of Santa Catarina
CNI/CEB – National Confederation of Industry / Brazilian Business Coalition
CELESC – Electricity Utility Company of Santa Catarina
ELETROS – National Association of Manufacturers of Electro-electronic Products
CERTI Foundation – Center of Reference in Innovative Technologies
Joinville – Spisská Nová Vês Sister City Committee
Among the main entities in which we participate or with which they interact, we can
Honorary Consulate of the Slovak Republic in the South of Brazil
mention:
Itaiópolis Volunteer Fire Brigade
ABA – Brazilian Association of Advertisers
FIESC – Federation of Industries of the State of Santa Catarina
ABERJE – Brazilian Business Communication Association
Forum of Business Leaders
ABIFA – Brazilian Foundry Association
Forum of Social Leaders
ABRAVA – Brazilian Refrigeration, Air Conditioning, Ventilation and Heating Association
MCE – Santa Catarina Movement for Excellence
ABRH – Brazilian Human Resources Association
SINDITHERME Employers’ Federation
ACII – Itaiópolis Commercial and Industrial Association
SINTIMESC – Inter-municipal Union of Workers in Metallurgical, Mechanical, and
ACIJ – Joinville Corporate Association
Electrical Material Industries of Santa Catarina
AEB – Brazilian Foreign Trade Association
Joinville Volunteer Fire Brigade
ALAINEE – Latin American Electrical and Electronic Industrial Association
Sociesc – Santa Catarina Educational Society
APSSOJ – Occupational Health and Security Professionals Association of Joinville and
SECESU / SC – Informatics and Telecommunications Users Society
Surrounding Areas
Brazil-México Chamber of Industry, Commerce and Tourism

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Stakeholder Engagement

Parcial4.14

List of stakeholder groups engaged by the organization.
Our main stakeholders are customers, suppliers, employees and communities surrounding our operations.

4.15

Basis for identification and selection of stakeholders to be engaged.
The strategic importance to our business is the main criterion for defining priority publics to be engaged.

4.16

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder groups.
The approaches and the main dialogue channels with our stakeholders are described on pages 23 (focus on suppliers), 25-27 (community), 28-31 (employees) and 57(customers).

4.17

Main issues and concerns that were raised through stakeholder engagement and what measures the organization has adopted to address these issues and concerns
Refer to pages 33 and 34.

ECONOMIC PERFORMANCEManagement Approach
Refer to pages 5, 23 and 31.

Economic Performance
EC3
Coverageof the defined benefit pension plan obligations that the company offers.
Our pension plans vary according to and are adapted to the different market characteristics of the countries where we operate.
In Brazil, for example, there is the Open Benefit Generating Plan (PGBL), with participation voluntary and open to all positions. Embraco contributes with values ranging​​
from 1% to5.5% of the employee`s gross monthly salary according to the salary range. The employee contribution follows a progressive scale linked to age: the minimum represents half theamount paid by Embraco, and the maximum, double. The investment focuses on fixed-income holdings, and based on market projections, we estimate a rate of return of 11.30%.
The plan covers the normal retirement (at 60 years old), early (at 55 years) and by disability, in addition to death benefits, payable to the spouse and children. There are two typesof pension. One is managed by a committee of employee representatives (nationwide), with a minimum employee contribution equivalent to 6.91% of gross salary and a company
contribution of 1.20%. The other is based on private pension funds, for which only the employee contributes (with 6.91% of gross salary).
The pension plan adopted in China follows the local laws, with monthly contributions made by the company and the employee to the Social Security Office of the Government. The
rate paid by the employee corresponds to 8% of the salary, and that paid by the company is 20%.
The pension plan is also a legal requirement in Italy, and the contributions of the company and employees vary according to the position held. For the directors, Embraco contributeswith 27.81% of the salary while the employee pays 13.19%. In managerial and administrative positions, the company contributes with 25.01%, and the employees, with 10.39%.
We do not offer a pension plan in Slovakia, and what was offered in the sales office located in Mexico was terminated in 2010 due to the installation of a new plant in the country.
Amounts invested in 2010 (US$)
BrazilChina

Slovakia

United States

Italy

MexicoTotal Embraco

1,997,765

4,097,678

0

65,862

5,185,606

011,346,911

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Procedures for local hiring and proportion of senior management hired from the local community in important operational units.
We do not have local recruitment policies.

Indirect Economic Impacts
EC8Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
In partnership with the inspection agency of Joinville (SC), we installed a traffic light for pedestrians at the corner of the company contributing to the safety of all who crossthe street. With a specific focus on our internal team, we conducted an awareness campaign about the importance of traffic signs. In both initiatives, the investment reachedapproximately US$ 10,000.
Also in Joinville, we have invested US$ 7,500 in the Flower Joinville Project, sponsored by the municipal government to stimulate companies to adopt green areas and assume
the costs of maintenance. We have adopted a square and a public garden in the city.

ENVIRONMENTAL PERFORMANCEManagement Approach
Refer to pages 17, 19 and 24.

Materials
EN1

Materials used by weight or volume.

Materials used (t)
401.0
354.6

2.5%

341.8

2.8%

312.3
2.9%

285.7

4.2%

2.6%

Renewable materials
Note 1 Considers the main materials used in the manufacturing processes - steel, copper, aluminum andcasted - and the wood packaging used for transporting products.
Note 2 Data through 2009 only consider the operations in Brazil. Those concerning 2010 include all
Embraco plants in the world (Brazil, China, Italy and Slovakia), and reflect the increase in production
recorded in the year.

2006

2007

2008

2009

2010

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EnergyParcialEN3

Direct energy consumption broken down by primary energy source.

EN4

Indirect energy consumption broken down by primary energy source.
Driven by increased production (28%), the total direct energy consumption in 2010 grew by 21% compared to the previous year, but the consumption per compressor produced fell
by 5%. In the consumption profile, the major changes with respect to 2009 were the reduction in the use of propane, the increased consumption of liquefied petroleum gas (LPG)
and the elimination of kerosene from the company`s energy matrix (see table). Natural gas continues to be the main source of direct energy in all operations and the only one usedin factories.
Indirect energy consumption is concentrated in the purchase of electric energy, and reflecting the increased production, grew by 17% in absolute terms in relation to 2009, withsignificant differences among the various units. The foundry, located in Brazil, had the highest increase (25%), and Embraco Italy, the lowest (9%). Despite the increase in absoluteconsumption, the relative consumption (indirect energy/compressor produced) fell 9.1% in the global operation.
For 2011, the target is to further increase production eco-efficiency: we want to reduce consumption by 10% per compressor produced, considering the main energy sources used,natural gas and electricity. The projects that will help us achieve this goal are already in progress, and include: identify consumption by equipment, conduct an annual energy audit
and establish an improvement plan; optimize the production plan and the use of air compressors, replace low yield motors and improve the HVAC systems.
Energy consumption (MJ)
BrazilChina

Slovakia

Italy

Total Embraco

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

Direct Energy
Natural gas

175,133,910

224,060,655

64,949,605

69,893,635

83,917,486

108,406,072

64,595,895

67,008,830

388,596,896

469,369,192

Methanol

372,842

411,840

7,603

0

0

0

0

0

380,445

411,840

Propane3,716,471

3,032,424

0

0

0

0

0

0

3,716,471

3,032,424

Kerosene00115,232

0

0

0

0

0

115,232

0LPG

9,099,830

12,978,919

0

0

0

0

0

0

9,099,830

12,978,919

Diesel oil

1,477,594

1,786,200

0205,442

1,210,519

1,974,861

002,688,113

3,966,503

Gasoline

77,795

122,706

0

1,115,925

1,377,387

1,170,369

001,455,182

2,409,000

189,878,442

242,392,744

65,072,440

71,215,002

86,505,392

111,551,302

64,595,895

67,008,830

406,052,169

492,167,878

Electric energy

568,752,462

666,968,951

91,260,000

107,927,640

98,256,294

119,348,590

51,674,386

51,679,717

809,943,142

945,924,898

Total

568,752,462

666,968,951

91,260,000

107,927,640

98,256,294

119,348,590

51,674,386

51,679,717

809,943,142

945,924,898

TOTAL

758,630,904

909,361,695

156,332,440

179,142,642

184,761,686

230,899,892

116,270,281

118,688,547 1,215,995,311

1,438,092,776

Total
Indirect Energy

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ProfileManagement
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EnergyEfficiency

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Socialinvestment

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GRI
GRI
Content
Content

It is important to note that the total consumption in Brazil includes, in addition to the compressor factory, located in Joinville(SC), two other units that provide materials for thecompany`s global operation; a foundry, also in Joinville, and a component factory, in Itaiópolis. The graphs below represent the share of each unit in the consumption.

Parcial

Direct Energy
91.4%
3.1%
5.5%

Indirect Energy
61.0%

2.0%

37.0%

Compressors
EN5

Foundry

Components

Energy savings due to improvements in conservation and efficiency.
We carried out several projects aimed at energy efficiency in our units, such as the campaign to reduce the consumption of compressed air in the Brazil plant, for example, butthere is no exact information on the savings from these initiatives. In China’s case, we were able to quantify the savings in 17,754 GJ in the year as a result of monitoring.
A plan focused on increasing eco-efficiency of the factories is in progress and aims to reduce by 10% the electricity and natural gas used in the manufacture of each compressor
in 2010. For more information, see the answer of the indicators EN3 and EN4.

44

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Water

ParcialEN8

ProfileSustainability

Management
differentials

EnergyEfficiency

Socialinvestment

Supply
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chain
CHAIN

Internal
PublicMATERIALITY

GRI
GRI
Content
Content

45

Total water withdrawal by source (m3).
Through initiatives for the efficient use of water in our operations, the absolute consumption in 2010 grew only 4.44% in comparison with 2009, while global production increasedby 28%. This means a reduction of approximately 22% in the use of water per compressor produced, and the goal is to continue reducing the relative consumption by 10% eachyear until 2012. To learn more about the initiatives on this topic, see the item Production Process (page 17) in this Report.
BrazilChina

Slovakia

Total Embraco

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

Wells

205,210

264,925

0

0

0

0

125,786

78,062

330,996

342,987

Water supply
networks

98,82089,586

127,855

136,482

75,20990,796

15,51918,675

317,403335,539

TOTAL

304,030

354,511

127,855

136,482

75,20990,796

141,305

96,737648,399

678,526

Consumption Brazil – 2010 (m3)

233,661

Compressors1

Components

13,043

Foundry1

107,807
Wells
Water Supply Networks

1

Italy

This corrects and updates the information reported in the Embraco Sustainability Report 2009.

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Content

EN10 Percentage and total volume of water recycled.
Only our units located in China, Foundry in Joinville (SC) and the compressor factory in Joinville (SC), reuse water, in percentages ranging from 22% (China) to 55% (compressor
factory in Brazil). In 2010, the use of recycled water fell in the three units, as well as the percentage of recycled water used for consumption in production. In the group of units
monitored, the recycling of water represented 28% of consumption in 2010. In 2009, it was 36%.
Use of recycled water (m3)

2009

2010

China

35,69830,026Compressors (Brazil)

137,323

128,443

Foundry (Brazil)

60,312

34,103

TOTAL

233,333

192,572

Use of recycled water (%)
(%)

70%

61%
55%

28%

32%
22%

2009

2010

China
Compressors (Brazil)
Electronic components (Brazil)

46

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47

Complete

Emissions, Effluents, and Waste

Parcial

EN21 Total water discharge by quality and destination.
Following the consumption profiles, the water discharge is higher in the compressor factory located in Brazil. In 2010, 233,590 m³ were discharged, of which 55% for recycling in
the effluent treatment process.
In all units, we invested in the treatment of waste water, and therefore, the discharge is done mostly at the collection point, according to the following table.
Discharge total (m3)1
BrazilDischarge to collection point
Public Sewer Systems
Evaporation
Irrigation

1

China

Slovakia

Italy

Total Embraco

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

115,550

136,114

89,243

103,726

0

69,325

134,240

91,900339,033

401,065

0

0

0

0

75,20900075,209066,72545,086

1,279

0

0

0

7,065

4,837

75,06949,924

0

0

1,662

3,139

0

0

0

0

1,662

3,139

Recycling (from process
effluent treatment)

121,754

169,41035,672

29,61700

0

0157,426

199,027

TOTAL

304,028

350,610

127,855

136,482

75,20969,325

141,305

96,737648,399

653,155

Estimate based on water consumption.

The following table provides detailed information on the water disposal in the three units located in Brazil, with variations due to differences in the types of business.
Discharge in Brazil (m3)1
Compressors
Discharge to collection point
Public Sewer Systems

Foundry

2009

2010

2009

2010

2009

2010

56,821

72,435

6,423

6,541

52,306

57,138

0

0

0

0

0

0

54,862

32,712

2,981

2,672

8,882

9,702

0

0

0

0

0

0

Recycling (from process effluent treatment)

84,252

128,4430037,50240,967

TOTAL

195,935

233,590

9,404

9,213

98,690107,807

Evaporation
Irrigation

1

Components

Estimate based on water consumption.

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48

EN22 Total weight of waste by type and disposal method.
From 2009 to 2010, waste generation in the company increased 40% in absolute terms and in relative terms 9% (weight of waste generated for each compressor produced).
Our target is to readjust the waste management systems in 2011 all production units.
Waste disposal (kg)Brazil

China

Italy

Slovakia

Total Embraco

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

Landfill

200,464

400,8630

0

141,020

199,15000341,484

600,013

Incineration

464,500

1,537,950

98,21074,1780000562,710

1,612,128

Environmental Recycling1

80,236

128,891001,381,570

1,840,796

55,986

381,022

1,517,792

2,350,709

Economic Recycling

260,339

194,14900041,40000260,339

235,549

0

0

160

0

0

0

0

0

160

0

1,005,538

2,261,853

98,37074,178

1,522,590

2,081,346

55,986

381,0222,682,484

4,798,399

77,795

122,706

0

1,115,925

1,377,387

1,170,369

001,455,182

2,409,000

12,838,368

17,146,051

795,070

771,157

681,700

821,9800355,410

14,315,137

19,094,598

26,55024,910

1,080

0

0

0

5,608,828

10,4205,636,458

35,33044,236,671

64,197,647

10,528,448

12,492,920

12,515,740

19,069,570

0

5,898,740

67,280,859

101,658,877

116,600

140,110

0

0

0

0

0

0

116,600

140,110

Total

57,218,189

81,508,718

11,324,598

13,264,077

13,197,440

19,891,550

5,608,828

6,264,570

87,349,054

120,928,915

TOTAL

58,223,727

83,770,571

11,422,968

13,338,255

14,720,030

21,972,896

5,664,814

6,645,592

90,031,538

125,727,314

Hazardous wastes

2

OthersTotal
Non-hazardous waste
Landfill
Environmental Recycling
Economic Recycling2
Remediation of building
waste

1
2

1

Environmental recycling: reusing the material in Embraco`s production process.
Economy Recycling: selling the material for reuse by another organization.

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The following table details the waste disposal in the three units located in Brazil.

ParcialWaste disposal (kg)Compressors

Supply
VALUE
chain
CHAIN

Socialinvestment

Components

Internal
PublicMATERIALITY

Foundry

2009

2010

2009

2010

2009

2010

168,321369,870

8,173

7,629

23,97023,364

464,500

1,537,950

0

0

0

0

Environmental Recycling

64,082

62,346

16,1549,895

056,650

Economic Recycling

233,235

187,103

7,040

4,134

20,064

2,912

Others930,138

2,157,269

31,366

21,65844,03482,926877,100

1,134,590

14,640

7,972

11,946,628

16,003,489

0

0

0

0

26,55024,91043,735,427

63,585,114

378,736

463,342

122,508

149,191

116,600

140,110

0

0

0

0

Total

44,729,127

64,859,814

393,376

471,314

12,095,685

16,177,590

TOTAL

45,659,265

67,017,083

424,742

492,972

12,139,719

16,260,516

Hazardous wastes
Landfill
Incineration12

Non-hazardous waste
Landfill
Environmental Recycling

1

Economic Recycling2
Remediation of building waste

12

Environmental recycling: reusing the material in Embraco`s production process.
Economy Recycling: selling the material for reuse by another organization.

GRI
GRI
Content
Content

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SOCIAL PERFORMANCE – LABOR PRACTICESManagement Approach
Refer to pages 28, 30 and 31.

Employment
LA1

Total number of employees broken down by employment type, employment contract and region.
In 2010, total number of employees grew 15%, a reflection of the increase in business.
BrazilChina

Slovakia

United States

2009

2010

2009

2010

2009

2010

2009

Full-time

4,820

5,735

1,303

1,588

1,685

1,617

59

Italy

2010

2009

Mexico2010

2009

Total Embraco

2010

2009

2010

6

8,494

9,622

Employees
59

621

617

6

Temporaries

854

582

589

23

152

176

10

4

0

4

1

0

1,606

789

Trainees

10

11

0

6

6

8

0

0

1

5

0

0

17

30

Total

5,684

6,328

1,892

1,617

1,843

1,801

69

63

622

626

7

6

10,117

10,441

Outsourced

300

570

0

621

0

309

0

0

0

28

0

0

300

1,528

TOTAL

5,984

6,898

1,892

2,238

1,843

2,110

69

63

622

654

7

6

10,417

11,969Total number of employee

Breakdown of employees1 (2010)

11,96910,417
3%

13%

Brazil

57.6%

China
97%

Slovakia

87%
18.7%

Company`s employees
Outsourced
2009

2010

1

0.6%
17.6%

Includes outsourced.

5.5%

Italy
United States and Mexico

50

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ProfileSustainability

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Italy

MexicoGRI
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51

Total number and rate of employee turnover by age group, gender, and region.
Employees who have resigned
BrazilChina

Slovakia

United States

Total Embraco

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

Men

536

781

182

502

97

30

6

2

47

10

0

0

868

1,325

Women

141

164

43

21

68

23

4

3

24

3

0

0

280

214

Less than 30 years old

301

510

162

496

65

14

NA

1

0

0

0

0

NA

1,021

Between 30 and 50 years old

326

363

35

27

77

26

NA

4

49

8

0

0

NA

428

More than 50 years old

50

72

28

0

23

13

NA

0

22

5

0

0

NA

90

1,354

1,890

450

1,046

330

106

10

10

142

26

0

0

2,286

3,078

By gender

By age group

Total
Employees who were dismissed

BrazilChina1

Slovakia

United States

Italy

MexicoTotal Embraco

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

Men

282

1,102

514

779

26

131

3

2

3

5

0

0

828

2,019

Women

65

387

38

119

4

60

2

4

0

4

1

0

110

574

Less than 30 years old

243

1,066

526

821

18

113

NA

1

0

2

1

0

NA

2,003

Between 30 and 50 years old

99

413

26

77

10

70

NA

4

3

7

0

0

NA

571

More than 50 years old

5

10

0

0

2

8

NA

1

0

0

0

0

NA

19

694

1,489

1,104

1,796

60

382

5

12

6

18

2

0

1,871

5,186

By gender

By age groupTotal

NA: data not available.
1
The strong production seasonality in China boosts the numbers of dismissals and hiring.

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52

Breakdown (%) of turnover in 2010

ParcialBrazilChina

United States

Slovakia

Italy

MexicoDismissed Resigned Dismissed Resigned Dismissed Resigned Dismissed Resigned Dismissed Resigned Dismissed Resigned
By gender
Men

74

83

87

96

69

57

33

40

56

77

0

0

Women

26

17

13

4

31

43

67

60

44

23

0

0

Less than 30 years old

54

72

91

95

59

26

17

20

22

0

0

0

Between 30 and 50 years old

38

28

9

5

37

49

67

80

78

62

0

0

More than 50 years old

8

0

0

0

4

25

17

0

0

38

0

0

By age group

NA: data not available.

Labor and Governance Relations
LA4

Percentage of employees covered by collective bargaining agreements.
The inclusion of employees in collective bargaining agreements follows the rules and specificities of each country where we operate. In Brazil, China and Italy, all employees areincluded, while in the United States and Mexico, by the very nature of the market and the lack of legal obligation, there is no such agreement.
Freedom of association is guaranteed to employees and union participation, in 2010, reached 100% in China, 41% in Italy and 19% in Brazil.
BrazilChina

Slovakia 1

United States

Italy

Mexico

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

Employees (%) covered by collective
bargaining agreements

100

100

100

100

NA

NA

0

0

100

100

0

0

Empregados (%) filiados a sindicatos

27

19

100

100

NA

NA

NA

NA

46

41

NA

NA

NA: data not available.
By Slovak legislation, information about the coverage of collective agreements and membership of employees to trade union organizations are confidential.

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ParcialLA7

ProfileSustainability

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differentials

EnergyEfficiency

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chain
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Internal
PublicRates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region.
Rate of absenteeism1 (2010)
brazil

1.31%

china

0.63%

Slovakia

1.88%

Italy

3.61%

Training and Education
LA10 Average hours of training per year per employee broken down by employee category.
Average training (h)

89
78
70

38 40
18

38

21
2

UNITED
STATESITALY

2BraZilCHINASLOVAkia

2010

3

0
mExico2009

MATERIALITY

GRI
GRI
Content
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PublicGRI
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MATERIALITY

Complete
ParcialDiversity and Equal Opportunity
LA13 Composition of bodies responsible for corporate governance and breakdown of employees per category according to gender, age group, minorities, and other indicators ofdiversity
Participation of women in the workforce (%)
Brazil2009
Vice-presidency, board and management
Supervision and leadership
Teams

China
2010

Slovakia
2010

United States

Italy

2009

2010

2009

2010

2009

Mexico
2010

2009

2010

6

30

41

12

12

NA

1

0

0

0

0

9

41

26

122

12

NA

9

15

14

1

0

23

14

10

34

35

NA

36

30

32

3

25

2009

2010

2009

9,21
19,7

2009

NA: data not available.
1
In the Brazil plant data for high and middle leadership are computed together.
2
This corrects information disclosed in the Embraco Sustainability Report 2009.

Participation of people with disabilities in the workforce (%)
Brazil2009

China

Slovakia

2010

2009

2010

United States

2010

2009

Italy

2010

2009

Mexico2010

Vice-presidency, board and management

0

2

10

10

0

0

0

0

0

0

0

0

Supervision and leadership

0

2

0

0

0

0

0

0

0

0

0

0

Teams

5

5

1

1

1

1

0

0

0

2

0

0

Workforce breakdown by age group (%)
2009 2010
55682009 2010
6
8
29
27

2009 201012162009 20101111

2009 2010
40
60

63
66
65

27

2009 2010
12

74

86

89

65

More than 50 years old
60
40

33

Brazil

63

22
China

21

Slovakia

12
USA

3
0
Italy

Between 30 and 50 years old
Less than 30 years old

Mexico54Interview

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SOCIAL PERFORMANCE – HUMAN RIGHTS

ParcialManagement Approach
Refer to pages 23 and 24.

Supply
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CHAIN

Socialinvestment

Internal
PublicMATERIALITY

GRI
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Content
Content

Investment and Procurement Practices
HR1

Percentage and total number of significant investment agreements that include human rights clauses or that were subjected to human rights screening.
All significant investment agreements include human rights clauses.

HR2

Percentage of significant suppliers and contractors that have undergone screening on human rights and the measures taken.
Of Embraco`s 416 suppliers throughout the world, 92% have formally adhered to the company’s code of conduct, which have human rights clauses. These suppliers haveundergone assessment, in the form of a questionnaire, on this subject.
None of the assessments conducted in 2010 indicated violations of human rights.

Child Labor
HR6

Operations identified as having significant risk for incidents of child labor and measures taken to contribute to the abolition of child labor.
We have not identified risks of using child labor in our supply chain, and the theme is part of the sustainability checklist adopted in the preliminary assessment for the accreditationof partners. This risk may exist between some companies that supply to our partners. In our networking meetings, we encourage companies to adopt Embraco`s sustainability
parameters in their own value chains through meetings of awareness.

Forced and Compulsory Labor
HR7

Operations identified as having significant risk for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of forced orcompulsory labor.
We have not identified risks of use of forced or compulsory labor in our supply chain, and the theme is part of the sustainability checklist adopted in the preliminary assessment for
the accreditation of partners. This risk may exist between some companies that supply to our partners. In our networking meetings, we encourage companies to adopt Embraco`ssustainability parameters of in their own value chains through meetings of awareness.

SOCIAL PERFORMANCE – SOCIETYManagement Approach
Refer to pages 10, 40 and 56.

Corruption

55

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SO2

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Content
Content

Percentage and total number of business units submitted to risks assessments related to corruption.
All our units undergo periodic operational audits. They are determined by the corporate audit committee at the end of each year from risk assessment interviews carried out withthe president and vice presidents.
Additionally, our units in Brazil, Slovakia, United States and Italy are within the scope of the Sarbanes-Oxley Law (SOx). This means that they have strict internal control regarding
financial reports. Employees involved in this process receive specific training, presential or online, through Whirlpool’s Virtual University. The performance and effectiveness ofcontrol systems related to the adequacy of SOx are tested by the Internal Auditors of the company and undergo independent external verification. In 2010, we monitored a total of
31 cases (see table).
BrazilSlovakia

United States

Italy

Cases evaluated (absolute number)

10

8

5

8

Cases evaluated (% of total number of cases existing in the unit)

32

26

16

26

SO3

Percentage of employees trained on anti-corruption policies and procedures of the organization.
Embraco`s positioning against corruption can be found in the Code of Ethics, distributed to all employees, and the integration training courses for new employees covers themes
such as money laundering and anti-trust actions.
Among the administrative and managerial positions, these themes are subject to periodic training, which may be in the presential or online format. In 2010, trainings on
preventing money laundering covered 100% of the public.
The trainings on antitrust cases involved 2,128 employees of all units in 2010, including 1,054 in Brazil. By incorporating the theme in the integration training, the percentage ofcoverage was near 100% on this theme.

SO4

Measures taken in response to incidents of corruption.
As in 2009, in 2010 there were no recorded cases of corruption. To avoid this type of conduct, we have made available to the internal public our Code of Conduct, and directeveryone to report any violation of the principles explained in the document. The complaint may be made directly to a superior or via a Hotline, a toll free telephone line withattendants in Portuguese, English and Spanish. The complaints made by employees to this channel remain anonymous and checking the complaint occurs confidentially.

Public Policies
SO5

Positions relative to public policy and participation in public policy development and lobbying.
Through various forums, we participate in the discussion of public policy and seek to collaborate with the development of the sector where we operate with actions aligned to ourstrategic planning.
In Brazil, for example, Guilherme Lima, manager of Institutional Relations, is vice president of the National Research, Development and Engineering Association of Innovation
Companies (Anpei) that brings together companies, representatives of ministries and development public bodies. He also serves on the Advisory Board of the Research and Projects
Financing (FINEP), the Thematic Council of Industrial Policy and Technological Development of the National Confederation of Industry (Copin-CNI/Anpei) and the Advisory Board of theCenter for Strategic Studies and Management (CGEE / Anpei). We maintain an ongoing dialogue with trade associations (see complete list on page 40) to ensure that decisions follow
legal and ethical standards adopted by us, always focusing on economic, social and environmental sustainability.
Through Embraco Slovakia, we support projects developed in partnership with local authorities. In Mexico, the dialogue with the National Council of Science and Technology with thestate government of Nuevo Léon aims to collaborate with the construction of public policies related to innovation, energy efficiency, tax issues, product regulations and certifications.

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SOCIAL PERFORMANCE – PRODUCT RESPONSIBILITY

ParcialManagement Approach
Refer to pages 47 and 57.

Internal
PublicMATERIALITY

GRI
GRI
Content
Content

Customer Health and Safety
PR1

Products and services life cycle phases whereby health and safety impacts are assessed for improvement, and the percentage of goods and services subject to theseprocedures.
In developing new products we take into account the health and safety of employees and customers. In the phases ranging from idealization to customer delivery, for example, we
seek to identify and reduce the risk of toxicity based on a list of 546 hazardous substances that must be avoided in our processes and products. Some have already been bannedand others are being progressively eliminated. The process is certified by the QC80000 standard and involves testing carried out internally and by external partners, providing
greater transparency and quality.
Throughout product design and manufacture, we apply simulation tools to test performance under extreme conditions, with safety factors that reproduce the time of use for morethan 10 years. The goal is to eliminate safety fault risks even after the end of life cycle planned for the product.
These procedures are complemented by a fault detection process, which follows the perspective of customers and evaluates field products (those that were on the market andwere returned to the company for review). The goal is to identify faults and to act preventively; reducing impacts on customers and providing feedback to development area for
product improvement. This assessment is performed in 100% of the compressor families produced by Embraco, following statistical sampling representative of each compressor
model and family, and contributes with information that advances the product development and improvement cycle.
We have also created a series of manuals and catalogs that guide customers on how to properly and safely use the compressors and refrigerant gases. With a focus on responsible
disposal, the manuals and packaging contain information on the optimal disposal procedure and the chemical compatibility of waste.

Product and Service Labeling
PR3

Type of information about products and services required by labeling procedures, and the percentage of products and services subject to such requirements.
All compressors are accompanied by handling guidelines, data relating to components and, of course, a guide on the proper disposal without harming the environment. This
information can also be found on our website and are essential for the customer to use the product in the best possible way. The guidelines that accompany the products
marketed by Embraco also extend the identification to outsourced components.
The care is not limited to the internally developed production phases, and we seek to identify the use of harmful substances throughout the supply chain to strictly comply withinternational standards and legislation. Electronic products, for example, comply with international legislation that controls the presence of harmful substances to health andthe environment. Every year, our business units in Brazil, China, Slovakia and Italy are audited and evaluated according to criteria in the standard QC 080000 HSPM (Hazardous
Substance Process Management).

PR5

Practices related to customer satisfaction, including surveys results which measure this satisfaction.
Every three years we conduct a worldwide survey on Embraco`s Customer Satisfaction, in partnership with an outsourced company. In the latest survey, carried out in 2008, weinterviewed 206 people. The results were encouraging. 91% of respondents would recommend Embraco to their own customers and partners. Among products and services,quality and good origin were the aspects most cited, with 33%. Technology, good services, affordable prices and also trust deserve highlights.
In the same year, Embraco was seen as the largest compressor supplier for 91% of respondents. With the result in hand, an internal committee reviews the data, identifies gaps
and forwards to the areas responsible for the definition and implementation of improvement plans with the aim of improving our relationship with customers. The next survey isalready scheduled: it will be in 2011.

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Fiscal Year 2010 Cash and In-Kind Donations (US$)
Fiscal Year 2010 – Cash Donations
Education

Embraco Brazil

Embraco Italy

56,471

5,642

Housing
Environment

1,412

Other

83,028

TOTAL

140,91124,087

6,842

2,000

18,445

Embraco Slovakia

Embraco China

4,363

7,800

Embraco U,S,
1,150

7,800

7,626

8,351

800

7,800
28,314

7,800

9,576

Fiscal Year 2010 – In-Kind/Product Donations
Education
Housing

860
43,628Environment

1,590

Other

3,636

TOTAL

12,068

390
180

3,200

2,000

44,668

3,200

390

Fiscal Year 2010 – In-Kind/Product Donations
Education

176,471

Housing
Environment
Other

121,664

TOTAL

298,134

0

0

0

0

Embraco Brazil

Embraco Italy

Embraco Slovakia

Embraco China

Embraco U,S,

1,578

415

655

491

210

296

12

19

61

30

Total 2010 Volunteering Activity
Hours of community service
Number of volunteers

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Annex: SOCIAL INVESTMENT – PROJECTS 20102010 Main Projects’ Indicators
Embraco Brazil

Embraco Italy

Embraco Ecology Award

2,599 people benefited (teachers and students)
US$ 78,582 invested

Volunteer program

7,965 people benefited (activities for community) (Joinville and Itaiópolis)
1,578 hours of community service
269 volunteers in 2010
US$ 6,986 invested

Hospital Management Project

60 Volunteers in 2010
2,000 hours of community service

Digital knowledge space

1,137 people benefited in Joinville and Itaiópolis (activities for community)
US$ 6,455 invested

Sports schools

312 people benefited in Joinville and Itaiópolis (activities for community)
US$ 35,474 invested

Support to Resgate Project

231 people benefited (activities for community)
US$ 56,470 invested

Embraco Teather group1,240 people benefited (activities for community)
148 hours of community service
8 volunteers in 2010
US$ 10,164 invested

Embraco Choir

4,510 people benefited (activities for community)
77 hours of community service
19 volunteers in 2010
US$ 6,350 invested

Environmental Education
with local schools

65 students from Secondary School benefited
6 volunteers invoved
8 projects finalized on “My Ecological School: sustainable solutions fora eco-compatible school”

Environment Day

519 people benefited (activities for community)
45 hours of community service
16 volunteers activities
US$ 11,000 invested

Clean the world initiative

320 students involved

Poetry award

300 students participating of the Award
US$ 4,500 invested

Orphanage Hesed

US$ 3,550 invested
10 volunteers involved

Sponsor a Child

10 children from Africa sponsored (educational program) for one year
US$ 4,200 invested

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Total 2010 Volunteering Activity
Embraco Slovakia

Volunteer program

Embraco Ecology Award

Embraco China
460 people benefited (activities for community)
655 hours of community service
16 volunteers activities in 2010
97% - community satisfaction

Volunteer program

980 people benefited (Sun Village, Global Village of Beijing,)
491 Hours community services of the whole year in total

Earth Hour

418 signatures promising they will switch off lights that hour

2,600 people benefited (2 schools project, 1 joined project prepared by
8 schools for ZOO)
95% - community satisfaction
US$ 8,351 invested

Refrigerator Donation Project

US$ 3,200 invested

Sponsorship in Behang
University

22 people benefited
US$ 7,800 invested

Spisska Nova Ves Hospital

20 hours of community service (dealing with christamas collection)
98% - community satisfaction
US$ 47,990 invested

Support to nurseries

530 people benefited (support for 5 nurseries)
94% - community satisfaction
US$ 1,587 invested

Parents needed initiative

1,150 - people benefited (Foster house Mlynky - Biele Vody, website
visitors)
45 hours of community service
91% - community satisfaction

Clean the Slovak Paradise

319 hours of community service
56 volunteers participating
97% - community satisfaction

Embraco U.S.
March of Dimes

US$ 7,626 invested
197 participants

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Sustainability Report
2011

ContaCT
This publication is Embraco’s responsibility. If you havequestions, suggestions or comments, please contact:
accs@embraco.com.br
Corporate Communication and Sustainability Management
Rua Rui Barbosa, 1020
Caixa Postal 91
CEP 89219-901 Joinville – SC – Brazil

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Sustainability Report
2011

Credits
General coordination
Embraco – Corporate Communication and Sustainability
OfficeGRI consultancy, materiality, writing and editing
Report Comunicação – www.reportcomunicacao.com.br
English version
Spin Traduções & Consultoria

Graphic Design and Layout
Report Comunicação – www.reportcomunicacao.com.br
PhotosRicardo Correa
Marcelo Caetano