IT’S TIME TO

TRANSFORMSUSTAINABILITYREPORTCOLD THAT
Advancing further by leading the future
For over 44 years we’ve been part of thousands of people’s everyday lifearound the world, bringing the cold that preserves as well as transforms.
Preserves, because our products keep refrigerated food fresher longer
and transforms, because we understand our customers’ needs, we drive
the global market by creating innovative products that offer people abetter quality of life and more time to enjoy what they like.
Likewise we work every day to lessen our impacts on theenvironment, creating more compact products that consume lessenergy. We also focus on the compressors’ post-consumption, so thatthey once again become raw material input and feed a circular economy
as well as benefit society.
For us, leadership is to transform, to drive, to engage. It’s to build abetter company for ourselves and for the world. It’s to be leader in themarkets where we operate by 2020. We look at all the possibilities andtheir consequences, always. We direct the market.
Here we’re leading the future and havethe responsibility to transform the present.

Our principles

page 04

Message from management

page 05

About this report

page 07

Our products and technologies

page 10

Profile and strategy

page 14

About uspage 15

Our business strategy

page 16

Principles that unite and define us

page 17

Awards and recognitions

page 19

Corporate governancepage 20

How we produce our products

page 24

Social investment

page 52

Relationship with suppliers

page 25

Embraco Ecology Award

page 53

Our way of producing

page 27

Global Volunteer Day

page 54

Customers

page 29

Environmental Network

page 55

Post-consumption

page 31

Social investment in Slovakia

page 55

Innovation is our trademark

page 33

Adjacent information

page 56

Doing more with lesspage 35

GRI Index

page 61

Our employees

page 40

Credits

page 67

New leadership model

page 41

Profile of our workforce

page 42

Multiculturalism

page 43

Attraction and retention

page 45

Professional development

page 47

Health & Safetypage 50

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OUR
GRI G4-56

MISSION

Offer innovative solutions
for a better quality of life.

VALUES

Diversity with inclusion
Spirit of winning
Integrity
Respect
Team work

PILLARSVISIONBe leader everywhere by 2020,
and recognized by customers as thepreferred partner.

Technology
leadership andinnovation

BRAND ATTRIBUTES

Delivering intelligent performance
Cultivating passion
Shaping the global scenario
Transcending the future$

Operational
excellence

Revenue
growth andvalue creation

Sustainability

PeopleSUSTAINABILITY REPORT 2014 |4

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We are all leaders of thetransformation! GRI G4-1
Every year, we’ve reinforced our commitment toshare with you Embraco’s main economic, social andenvironmental results, transparently and consistently.
In this Sustainability Report, we’ll talk about importantand recent achievements along with our challenges andstrategies to build an even better Embraco - simpler,
more innovative and customer centric.
Throughout the year 2014, social, environmental
and especially economic issues impacted the world.
We faced a challenging market scenario, with thestagnation of China’s growth, crisis in Europe, reduced
credit lines and tax incentives in Brazil and slow recoveryof the US economy.
For us, this was the moment to begin a transformation
and build a bridge to the future, guided by Vision
2020, which reaffirms our commitment to customers,
shareholders and society: we want to be leaders
everywhere by 2020, and recognized by customers
as the preferred partner.

SUSTAINABILITY REPORT 2014 |As part of this transformation, we launched the Manifesto“We are all leading the future”, which is about our identity– who we are and what we want to be – and about acompany that drives the global scenario and recognizes
the responsibility of its market position.

We transformed our production processes by
consolidating World Class Manufacturing (WCM)
methodology, which is making Embraco even more
efficient, agile, ensuring a high level of operational
excellence in all our units.

To remain competitive in the global marketplace, we
continuously invest in research and innovation witha focus on sustainability. One of the main results is
Embraco Wisemotion technology, which is alreadyrevolutionizing the refrigeration market. Without theuse of oil and using half the raw materials, Wisemotion
enables the development of more versatile, energy
efficient and silent refrigerators.

Furthermore, aligning business needs withenvironmental care, we strengthened Nat.Genius by
opening a second operations unit. This shows theconsistency of our commitment to reverse logistics.

We know that as important as developing appropriate
solutions for our customers’ needs, is the way we produce
them: we have sustainability as our business’ guiding
strategy and we value each one of our 12,000 people.

I hope that this report helps you understand
how we develop solutions which guarantee ourconsumers a better quality of life, in addition
to Embraco’s 2014 main results and thetransformation we aspire for the future.

Roberto H. Campos
President of Embraco

Good reading.

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ABOUT THISSUSTAINABILITY REPORT 2014 |7

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GRI G4-18 | G4-19 | G4-20 | G4-21| G4-23 | G4-24 | G4-25 | G4-26 |G4-27 | G4-28 | G4-29 | G4-30

Welcome to our Sustainability Report, an official
document which includes the main events andachievements in the period covering January 1
to December 31, 2014, from an economic, socialand environmental viewpoint. In addition, theReport tells a little of our history, our culture, thestructure under which we work, our management
policies and, of course, our actions to ensure thesustainability of our business.

For the 12th consecutive time, our Report follows thereporting guidelines proposed by the Global Reporting
Initiative (GRI), a non-governmental organization that
proposes a standard multisectoral report and enables,in this way, that companies have their performanceassessed by its stakeholders, and also so that they
can measure and assess the evolution of their own
performance. For the first time, we’ve developed a Reportadhering to the G4, the fourth and latest generation of
GRI Guidelines, released in July 2013 in Amsterdam, in
the Netherlands. This voluntary adherence reflects ourcommitment to best management practices relating toour stakeholders.

Main stakeholders:
stockholders, customers, companies
from the group, employees,
suppliers, communities surrounding
our operations, and third parties.

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How do we define the Report’s content?
Based on both an in-person and online survey conducted with
our stakeholders (internal and external), we sought to identify
our operation’s most relevant issues. The material aspects
identified were positioned by the following matrix:

Environmental

Employees

Society

Customers

HERE’S A MATERIAL ASPECT!
To make reading easier, every timethat we address a material aspect,
we’ll use this symbol.

Economic and operational

MATERIALITY MATRIX

Material aspects

GRI indicators

1. Research and innovation in productdevelopment

According to the G4 “Core” option, chosen by us
as the most suitable to guide the constructionof our Report, each material aspect cited has
one or more GRI indicators, which must be
answered by us throughout the course of thisdocument. To check which GRI indicators weselected to answer, simply access the GRI Index(table) of this publication (page 61).

30%
Q3-6
Q7-33

2. Encouraging best social environmental
practices in the supply chain

10%
Q5-19

External stakeholder

Q6-26

Q6-24

0%

Q6-27

Q7-30

Q4-14
Q6-25

Q4-17

Q4-16

-20%

SUSTAINABILITY REPORT 2014 |5. Health and Safety Management

Q3-3

6. Process waste and effluent management

Q3-1

7. Financial management of risks andclimate change opportunities

Q4-13

Q7-31

Q6-23
Q6-28

Q4-9

Q4-10

Q5-21
Q4-7

Q4-15

Q6-29

Q3-4

4. Employee training, education anddevelopment

Q5-18

Q4-12

-30%
-30%

Q4-8

Q4-11
Q6-22

-20%

3. Ability to retain workforce

Q7-35
Q7-32

10%

-10%

Q5-20

Q3-2

It’s important to state that, performanceindicators (see GRI index) report only the year
2014, however, to keep the report updated until
the day of its release, some contents of thispublication also address 2015 achievements
and events – always properly marked.

Q3-5

Q7-34

-10%

0%
10%
Internal stakeholder

20%

30%

40%

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Wisemotion

Main benefits
RESIDENCIAL

Designed to revolutionize the market, Wisemotion is
the world’s first oil-free hermetic compressor intended
for household refrigeration. Among its main benefits
include reducing the environmental impact and new
refrigerator design possibilities, since Wisemotion
can be placed in various positions inside refrigerators,
without affecting its cooling capacity.
Creating this technology took ten years of studies for
our R&D team, involved close to 100 engineers andresearchers and generated more than 80 patents.
Wisemotion was inspired by Swiss watches, recognizedworldwide for their accuracy and quality.

SUSTAINABILITY REPORT 2014 |Energy savings: Embraco Wisemotion technology
works on demand and therefore can achieve energy
savings of over 20% when compared to the most soldenergy-efficient compressors worldwide.

More compact: with a height equivalent to a 10cm smartphone, Wisemotion saves space inside therefrigerator, allowing, for example, an additional
20 liter drawer to store products.

Silent operation: Embraco Wisemotion technology
brings the most modern and innovative noise control
solutions, making the refrigerator’s traditional ‘on andoff’ noise almost imperceptible to the human ear.

Eco-friendly: Wisemotion uses approximately 50%
less raw material than conventional compressors andeliminates the need for lubricant oil. Furthermore, it
provides a savings of approximately 20% in refrigerantgas charge, when compared to conventional equipment.

Food preservation: Embraco Wisemotion technology
automatically adjusts its power according to therefrigerators’ demand needs of which it’s an integral
part – depending on the compartment size to becooled and the amount of food, the compressor willneed to work more or less. For the final consumer,
this generates more efficient food preservation;
for refrigerator manufacturers, it creates moreconvenience, to obtain different power level invaried equipment.

Versatility: compressors with Embraco Wisemotion
technology can be installed in different locations of thecooling system and in the future will be able to power– simultaneously – refrigerator, freezer, wine cellar andmini bar. Furthermore, the oil-free solution allows ourhousehold refrigeration customers to innovate in theirproduct designs and introduce new concepts in the
global market.

how we produce our products

In November 2014, the first compressor with
Wisemotion technology was produced in Mexico,chosen to begin Wisemotion production because of
its strategic geographical location – with easy accessto US and European customers. To begin productionof this revolutionary technology, Mexico’s unit wasadapted by purchasing new machinery and by training
all employees involved in the operation.

Aberje Award
With the global communication campaign conducted
for Wisemotion, we won the Aberje Award, promotedby the Brazilian Corporate Communication Association,
one of the most respected in Brazil, in the category“Communication and Press Relations”.

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Fullmotion

COMERCIALRESIDENCIAL

Launched in the 2000s, Embraco Fullmotion technology
was an evolution of our variable speed compressors andbrought benefits like a reduction of up to 40% in energy
consumption, lower noise levels and more efficient foodpreservation.
By the end of 2015 we will expand, by approximately
140%, global production of Embraco Fullmotion
technology compressors. To this end, in 2014, weinvested in our factories in China and Italy. Our goal
is to ensure faster response to our customers’ needs,
strengthening our strategic presence in the region.
In 2015, we presented the VESF, the world’s mostefficient and silent compressor in its category. The
product has Embraco Fullmotion technology and can be
up to 9% more efficient than the previous model, theVESD. By working at a minimum speed, its noise is only
26 dB, which corresponds to the noise level of a library.
In the China Refrigeration 2015 fair, we launched the
VEGT8U compressor. Focusing on 400 – 1000 liter
coolers it offers less noise and can be up to 20% more
efficient in comparison with conventional compressors.
The compressor also uses R-290, natural gas refrigerant
that meets stringent energy efficiency standards alongwith having low impact on the ozone layer. The VEGT8U
is the solution that meets all DOE (USA Department ofEnergy) requirements, planned to take effect in 2017.

SUSTAINABILITY REPORT 2014 |On-off

COMERCIAL

how we produce our products

RESIDENCIAL

Developed by us over 40 years ago, compressors withon-off technology can be found in more than 100 million
refrigerators worldwide.
In 2014, we launched the EME compressor for household
refrigeration, which brings an energy efficiency gain of up
to 5% compared to its predecessor – the EMD. In addition,
this solution uses R600a, a natural refrigerant gas thatmeets the most stringent environmental regulations suchas those from the US and Europe, by offering minimum
CO2 emissions.
Another important launch with on-off technology was
the FFU160HAX, one of the market’s most modern
compressors for commercial refrigeration, with low noise,small size and up to 9% more energy efficient whencompared with compressors of the same capacity fromcompetitors.
One of this solution’s main differentials is that thesame model can be used in applications with different
characteristics, such as vertical beverage displays or
horizontal freezers with glass lids, achieving maximum
performance and reliability.
During the Chillventa fair, we launched the EMX33118Y
compressor, developed for commercial applications andadapted for vertical beverage displays. Its distinguishingfeature is the use of natural refrigerant isobutane
gas, which generates less impact on the ozone layer.
Production of this compressor line began in 2015 in
Slovakia.

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Some big news in 2014 was the Plug-in solution,a sealed unit that has as differentials quick
installation and maintenance ease. Designed toattend our commercial refrigeration customers,
it’s able to cool self-service displays of up to two
thousand liters and has the advantage of having
its entire system assembled by Embraco itself,
which offers reliability and significantly reduces
the occurrence of problems in the field. One of the
Plug-in’s major benefits is that it can be installed
by a single operator in less time – when compared
to conventional mounting systems. By using the
Plug-in, displays that used to take up to an hour
to be assembled, now take about 20 minutes. It’s
produced in Brazil.
With low noise and vibration levels, the NEU
compressors are intended for commercial
refrigeration. Designed to meet retailers’ needs,
they stand out for their robustness - which ensures
their performance in harsh working conditions
along with energy efficiency up to 10% higher
compared to its predecessor model, the NEK. The
NEU is manufactured in Slovakia and in 2015, its
development won second place in the “Innovation
Act of the Year” award, under the productinnovation category. (see page 19)

SUSTAINABILITY REPORT 2014 |how we produce our products

B.blend
Launched in 2015 by Brastemp, B.blend
is the first all-in-one capsule beverage
platform in the world and was created to
revolutionize the experience of consuming
drinks at home. The solution, which uses
the EM family compressor, prepares morethan 20 flavors of hot or cold drinks, withor without carbonation, from capsules –besides offering natural water, either cold,icy, warm and with carbonation.
The product was developed by teams
from Whirlpool, Embraco and suppliers– including companies from China andEurope – and our biggest challenge wasto develop the technology to perform thecooling and heating functions in seconds.
For this, we invited 20 professionals fromthe R&D, Purchasing, Manufacturing and
Quality areas to devote themselves to theproject, which developed its technology
in one year (which can be considered
record time).

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PROFILE AND
SUSTAINABILITY REPORT 2014 |14

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About usGRI G4-3 | G4-4 | G4-5 | G4-6 | G4-8 | G4-9

We’re Embraco, a company founded in
1971, in the city of Joinville (SC) – where we
maintain our headquarters – and today is theworld technology and innovation leader forhermetic compressors, the main component
responsible for producing cold in refrigerators.
We’re physically present in Brazil, Mexico,
United States, Italy, Slovakia, Russia andChina. We have over 12,000 employees, withcustomers in more than 80 countries and a
total annual production capacity of more than
39 million units.

OUR GLOBAL PRESENCE

More than 500 people
dedicated to R&D
1,582 patents granted
44 years of history
completed in 2015

More than 40 R&D
laboratories

More than 90% of
suppliers adhere to Codeof Conduct
A company that is areference in people
management strategy

EMBRACO RUSSIA
MoscouSales office

EMBRACO
UNITED STATESDuluthWarehouse andsales office
59% of revenues over thelast five years came fromproducts launched in thesame period.

SUSTAINABILITY REPORT 2014 |EMBRACO MEXICO
Apodaca, Monterrey
Compressor factoryand office

EMBRACO BRAZIL
Joinville
Headquarters, office,compressor factory, foundry
Itaiópolis
Component and coolingsystems factory

EMBRACO ITALY
Riva Presso Chieri
Office and compressor
factory

EMBRACO SLOVAKIA
Spisská Nová Ves
Office andcompressor factoryMore than 30 thousandpeople benefited fromsocial investment
actions

EMBRACO CHINA
Beijing
Office and compressor andelectronics factory
QingdaoElectronics factory15

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Change in our structure
GRI G4-13

In March 2015 we announced the transfer of
our Electronic Unit in Joinville, Brazil, to the
Qingdao plant in China, where we’ve produced
electronic control systems for our compressors
since 2007.
The change is part of the measures we’vetaken to address growing market challenges.
We’re always attentive and seeking consistentalternatives to remain competitive in the longterm, focusing on continuous improvement of
our operations worldwide.
Our Electronics Brazil employees had
the opportunity to be transferred to theCompressor unit, also in Joinville. For those
who opted for termination, we offered abenefits package in line with our strategic
people management policy.

SUSTAINABILITY REPORT 2014 |Our business strategy
For us to become leaders everywhere by 2020and gain the position of preferred partner by ourcustomers, we consistently invest in improving our
products and processes. Innovation is part of ourculture and permeates all our activities. Every day,
we look to anticipate market trends, taking the mostmodern technologies to our customers and endusers to make their life better. In 2014, we operated
through three workstreams:

Core business: our compressors

Distribution and retail

GrowthWe produce hermetic compressors for refrigerationthat preserve food for thousands of families andbusiness establishments around the globe. In 2014,
the main cooling solutions that we developed and/or marketed counted on: a revolutionary technology Embraco Wisemotion, efficient technology - Embraco
Fullmotion and traditional on-off technology (asdescribed on page 10).

Our distribution and retail process is dedicated to
global compressor sales for distributors, retailers
and manufacturers who, in turn, sell our products
to refrigeration technicians – the professionals who
perform maintenance on freezers and refrigerators inhomes and commercial establishments. You can learn
more about the relationship with this public on page 30.

The New Business area evolved, and the Growth area
was created, in 2014, to pursue growth opportunities
both inside and outside our core business. The Growthteam reports directly to our president and has as a major
highlight Nat.Genius, a new business that focuses on thereverse logistics market as well as brings benefits to theenvironment. You can learn more about Nat.Genius and its
operation on page 31.

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Principles thatunite and define us
GRI G4-2

Sustainability
Ensuring our business’ viability in the short, medium
and long term is a goal of all employees, fromleadership to those responsible for the operational
side of our production. All decisions – including
the choice of materials that make up compressors,
selection criteria of suppliers, training of employees,
among many others – take into account economic,
social and environmental criteria.
“Sustainable thinking” guides us, inspires us andchallenges us every day because we know the
responsibility we have to our investors, customers,
employees, communities and other stakeholders.
Sustainability is one of our strategic pillars.
We engage it in our daily lives through threeworkstreams:

Sustainable products
Innovation occupies a central role in thesustainability strategy. In this context, the energy
efficiency of our products is an essential aspect.
We invest in developing innovative solutions andin reducing the use of raw materials.
Corporate sustainability structure

People engagament
Externally, our people engagement is reflected in our
private social investment policy that guides us tocontinuously apply resources in the communities in which
we operate, through educational and environmental
projects. Internally, we engage our employees to value ourdiversity and seek to ensure the safety of our people.

To ensure that the sustainability strategy
permeates throughout our operation, we
count on a dedicated internal structure,
led by the vice president of Sustainability(Ursula Angeli), who is also responsible for theareas of Human Resources, Communication,
Environment, Health and Safety as well as
Institutional Relations.

Sustainable value chain
Our sustainability vision extends throughout our value chain,from supply to post-consumption. In the supply chain, we workin partnership with our suppliers so that they incorporate into
their daily practices sustainability requirements, promoting a
joint effort in finding solutions. In post-consumption, we havea compressor reverse logistics program which ensures productrecycling after its disposal by the end consumer.

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Our commitment to the planet
We’re a global company with locations on four continents,
more than 12,000 employees and products present inmore than 80 countries. We know that for the size andscale of our operation, we generate impacts and have
responsibilities to our stakeholders. So, over the years,
we’ve assumed strategically important commitments to
global and local entities. They are:Sustainable Energy for All
In 2012, we became the first company headquarteredin Brazil to sign the “Sustainable Energy for All”
global commitment. This is an initiative of the United
Nations (UN), launched in 2011 aiming to promote themobilization of governments, companies and civil society
to ensure universal access to energy, raise global energy
efficiency and increase the participation of renewables inthe energy mix.
Global Compact
In 2014, we reinforced our commitment to the Global
Compact by signing a Letter of Commitment Against
Corruption. We’ve been signatories to this UN initiativefor over 12 years. Its goal is to engage the business
community in adopting fundamental and international
values that encompass human rights, labor relations,environment and anti-corruption.

SUSTAINABILITY REPORT 2014 |how we produce our products

Innovation
Letter of Commitment to
Sustainable Solid Waste Management
Created by the Ethos Institute, the Institute’s Letter ofCommitment to Sustainable Solid Waste Management aims
to reinforce the private sector’s commitment to sustainable
development and implementation of the National Policy on
Solid Waste. We signed the Letter in 2013, and reinforced
our global goal of sending zero waste to landfills fromcompressor factories by 2018 and from the foundry by
2022. Anticipating our own goal, we managed to zero out,
in 2015, sending waste to landfills from Brazil’s compressor
factories. The plant was Embraco’s first compressor factoryin the world to attain this achievement.

Innovation is a characteristic inherent to our culture and has been a
trait present in products, processes and strategy. Historically we’ve
invested 3% to 4% of annual net revenues in Research & Development(R&D) to create products that use less raw material, which are moreenergy efficient and offer a lower environmental impact.
The result of this solid performance can be perceived by its built
structure – which includes 40 cutting-edge laboratories and over
500 professionals dedicated to R&D –, strategic partnerships with
universities and research institutes in various countries, approval of
1,582 patents granted, and also the credibility that our solutions havewith our customers.
Innovation is covered in more depth on page 33.

Brazilian GHG Protocol
In 2014, we mapped – for the third consecutive year – ourgreenhouse gas emissions (GHG). In this latest edition, wemonitored our operations in China, Brazil, Slovakia, Mexico,
Italy and the United States. The results can be found on
page 39 of this publication.

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how we produce our productsAwards andrecognitions
Exame Sustainability Guide 2014
We were voted one of the most sustainable
companies in the electro-electronics sector by
Exame Sustainability Guide, one of the largest andmost respected publications on sustainability andcorporate responsibility in Brazil. The publication
is annual and uses a methodology developed by
the Center for Sustainability Studies of the Getulio
Vargas Foundation (GVCes) – reference institution on
the subject in the country.
ABERJE 2014 Award
We won the national phase of the ABERJE Award,
promoted by the Brazilian Corporate Communication
Association, with the case “WISEMOTION – A story in
12 languages”, in the International Communication
and Relations category.
FINEP Award
We’re among three finalists for the FINEP Award, themost important innovation stimulus and recognition
tool in Brazil. The award’s results will be announced
in 2015.

SUSTAINABILITY REPORT 2014 |VOCÊ S/A Guide - The Best Companies
to Work 2014
We were elected the best company to work for in the
Career category of the 18th edition of the Guia VOCÊS/A magazine award, one of the most important inBrazil in the Human Resource area.
Via Bona Slovakia
In March 2015, we were winners of the Via Bona
Slovakia award in the “Good Partner for Community”
category. It’s the second time we’ve won theaward, which is granted by the Pontis Foundationand is considered one of the most important local
recognition of social responsibility.
Innovation Act of the Year 2014 Award
Our Slovakia unit was recognized with second placein the “Product Innovation” category. The award was
bestowed for the NEU commercial compressor, which
is produced in the country.

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In Embraco, our highest corporate governance body iscalled the president’s staff and its main duties are todefine and monitor the implementation of the strategy,
monitor performance of the organization and executives
through quarterly reviews and make key decisions on
economic, environmental and social issues.

Proximity to leadership

how we produce our products

GRI G4-34 | G4-38

Another important staff function is to conduct our risk
management. For this, the body uses the Enterprise Risk
Management (ERM) methodology, which defines those
responsible for monitoring risk and opportunity factors,
and executes action plans to mitigate monitored risks.
COMPOSITION OF PRESIDENT’S STAFF

To connect Embraco’s day-to-day management
and operation, aligning them with its strategy andobjectives, we hold events such as the Annual
Leadership Meeting and Strategic Dialogues, which
include participation of directors who are part of thecompany’s staff.

Controller
In 2006, after a shareholder reorganization,
the company joined with Multibrás – a home
appliance producer – forming, in Brazil,
Whirlpool S.A., controlled by the American
Whirlpool Corporation, which is today thelargest home appliance manufacturer inthe world.

President

Five vice-presidents

Since it provides cooling solutions to theentire market, Embraco maintains an
independent management, with a strong
shield policy that ensures the confidentialityof information, protecting its business aswell as that of its customers.

Vision change
In 2014 we changed our vision, which is
now: be the leader everywhere by 2020,
and recognized by customers as thepreferred partner. This change reaffirms ourcommitment to deliver innovative solutions
for a better quality of life and our role as
leaders and drivers of global market trends.
Along with the vision, we also launched the
Manifesto “We are all leading the future”,
which is about our identity – who we are
and what we want to be. The Manifesto
speaks about our people, who are engaged,
talented and passionate about what they do.
It speaks about a company that leads thetransformation, drives the global market
and recognizes the responsibility of its
market position.

Three directors

SUSTAINABILITY REPORT 2014 |21

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Ethics and transparency

how we produce our products

Combating corruption

GRI G4-41

To manage questions about the conduct expectedfrom our employees and suppliers as well as
maintain the communication channels that receive
complaints or claims, we have an Ethics Committee.
Additionally, we count on a Code of Ethics, Global
Compliance Policies and the Letter of Organizational
Values, which are adhered by all employees. For our
suppliers, we have the Code of Conduct, aimed at100% of this public.

We adhere to the requirements of the American Sarbanes-Oxley
Act (SOX), a North American law created to reduce the risk of financial
fraud. Following SOX rules, all internal controls over significant financial
reports are documented and tested by the internal audit area, andare subsequently validated and certified by an external audit, on anannual basis. During 2014, 301 controls were audited in 71% ofEmbraco’s plants.
In addition to SOX, to ensure the integrity of our operation, we
conducted operational audits in our units - 100% of them are subject
to periodic review of all processes therein performed and documented.
In 2014, six operational audits were carried out in order to checkthe internal control environment.
SOX PROCESSES EVALUATED GRI G4 SO3
BrazilSUSTAINABILITY REPORT 2014 |Italy

Slovakia

United States

China

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Total

13

13

9

9

9

9

6

6

0

0%

Percentage
of operation

45%

45%

24%

24%

24%

24%

16%

16%

11

38%

Our employees’ participation

Reporting channels

So as to engage employees in our anticorruption policy, we conducted presentialtraining, with Embraco professionals, basedon our Code of Ethics and Global Compliance
Policies, covering topics such as corruption,
money laundering and antitrust actions. In
addition, we have 15 global internal ethics
and compliance policies.

Besides conducting trainings, we maintaina channel for anonymous allegations about
corruption through a free hotline that isavailable to employees, customers, suppliers
and other stakeholders.

Training in anti-corruption policies andprocedures is offered to 100% of newly
hired employees and, from time to time, tothose who have been previously trained (in aknowledge updating process).

If an allegation is made, a specific committee
verifies all allegations received, confidentially.
REPORTING CHANNELS
Brazil: 0800 891 4247
Italy: 800 788 476
Slovakia: 800 961 2419
China: 11 800 711 0475
Mexico: 001 800 961 4262

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Fostering our
sector’s development
GRI G4-15 | G4-16

As global technology leaders, we actively participate
in developing public policies that contribute torefrigeration industry development.
Our work is focused on the formulation ofguidelines for innovation, energy efficiency,
professional development and industry
regulations.
In this way, we’ve also established partnerships withresearch centers and universities in several countries,
and act strategically with government agencies ofthese different locations. In the list of organizations
that rely on our cooperation are:

PARTICIPATION IN ASSOCIATIONS AND ORGANIZATIONS
American Chamber ofCommerce in Slovakia;

Itaiópolis Commercial and Industrial
Association (ACII);

Brazilian Electrical and Electronic
Industry Association (Abinee);

Slovakia Electrical Equipment
Industry Association;

Brazilian Association ofAdvertisers (ABA);

Brazilian Foreign Trade
Association (AEB);

Brazilian Business Communication
Association (Aberje)

Occupational Health and Safety
Professionals Association of Joinvilleand Region (APSSOJ);

Brazilian Foundry Association (Abifa);
Brazilian Association of TechnicalStandards (ABNT);
Brazilian Human Resources
Association (ABRH);
Brazilian Refrigeration, Air
Conditioning, Ventilation and Heating
Association (Abrava);

SUSTAINABILITY REPORT 2014 |Joinville Business Association (ACIJ);
Latin American Electricaland Electronic Industrial
Association (Alainee);
National Association of
Manufacturers of Electro-electronic
Products (Eletros);National Research, Development andEngineering Association of Innovative
Companies (Anpei)
Human Resource Development
Association – Slovakia;

National Council for Scientific andTechnological Development (CNPq);
Federation of Industries of Santa
Catarina (Fiesc);

Business Leaders Forum – Slovakia;

Federation of Industries ofSão Paulo (Fiesp); andElectricity Utility Company
of Santa Catarina (Celesc);International ElectrotechnicalCommission (IEC).

Center of Industries of the Stateof Santa Catarina (Ciesc);
Joinville Architect and Engineer
Center (Ceaj);Joinville – Spisska Nová Ves Sister
City Committee;
National Confederation of Industry /Brazilian Business Coalition;23

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To ensure the business’ sustainability, we analyze
globally our products’ entire lifecycle – from raw
material inputs purchased from suppliers, torecycling the final product after the end of its usefullife – to seek efficiency gain opportunities andthus reduce operating costs as well as natural
resource use.
Next we describe the initiatives developed together
with suppliers – from where a large part of inputs
comes from – manufacturing process, relationshipwith customers and reverse logistics process which
we do to reclaim and recycle our compressors after
the end of their useful life.

how we produce our products

Relationshipwith suppliers
GRI G4-12 | HR1 | HR10

In 2014, we worked with more than five thousand
suppliers, in 35 countries and the main products
acquired were steel, copper and engineering parts.
Once a company qualifies in our bank and goes on
to supply products and/or services, it’s received asa partner and has Embraco’s support to become
increasingly sustainable.
This work is carried out through the Supplier
Excellence Program, developed since 2012, aiming
to improve the performance of our supply chain
regarding aspects related to service, quality andcosts, through workshops and multidisciplinary
works, among other actions.
In 2014, 20 workshops were held with suppliersin Slovakia, Italy, China and Brazil.

SUCCESS STORY ARYLUXIn 2014 our Supplier Excellence Program worked with
Arylux, a manufacturer of electrical and mechanicalcomponents, located in Hungary, with which we’ve hada relationship since 2004.
We took our Supply team to our partner’s facilities to learn
more about manufacturing processes as well as to map andselect the main ideas for improvement.
In this way, we suggested solutions to optimize costs, productquality, improve logistics processes along with interaction andcommunication processes with Embraco, seeking continuous
growth and maintaining Arylux business’ sustainability.
As an example of the initiatives raised, we exchanged
cardboard boxes used for transport for wooden ones, which
are more robust, flexible (since the size of the products aredifferent), sustainable and cost less.

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Adherence to thecode of conduct
To be an Embraco supplier, the applicant company mustbe aligned with the principles that govern our actions,
explicit in the code of conduct. This means that neither
the supplier nor the third parties contracted by it, can– under any circumstances – condone corruption, childlabor, slave labor, discrimination, deforestation or otherenvironmental violations, as well as comply with all theircountry’s labor laws.
Since 2009, we’ve sent our code of conduct to our
suppliers. In 2014, this document was sent to 100% of
direct suppliers globally and received 91% adherence

Biennial self-assessment
Aiming to assess the suppliers’ adherence to our
ethical principles, every two years we invite this public
to complete a self-assessment questionnaire that
includes questions regarding profile, labor relation rights,
environmental impact management and production chain
control. In 2013, we carried out this process and received
feedback from 90% of our supplier base. In 2015, thesurvey will be done again.

SELF-ASSESSMENT FEEDBACKS IN 2013
SUPPLIER’S ADHERENCE TO THE
CODE OF CONDUCT IN 2014SUSTAINABILITY REPORT 2014 |Plant

Adherence

In progressNº of processes%

Brazil

152

12

164

93

China

132

0

132

100

Europe

133

20

153

87

Mexico

44

12

56

79

Total

461

44

505

91

Plant

Received

Nº of processes%

Brazil

117

158

74

China

135

140

99

Europe

267

276

68

Mexico

32

36

88

Total

551

610

90

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Our way of producing
World Class Manufacturing
To become increasingly more efficient in our production
process, since 2013 we began implementing a complete
system for continuous improvement focused on safety,
quality and cost reduction, based on the World Class
Manufacturing (WCM) methodology in all our operations.
Part of WCM is the simplification and organization of ourwork routine, to ensure ZERO accidents, ZERO waste,
as well as productivity gains in all units and countries
where we operate. Because we’re a global company,
adoption of this methodology becomes even more
important, as it allows us to replicate the best practices
carried out in a particular plant in others, always
considering and respecting each region’s particularities.
At the end of 2014, the plants in Italy, Slovakia, Brazil
and Mexico were operating within the methodology.
Consequently, according to the WCM’s base pillars, we
can highlight the following results:

SUSTAINABILITY REPORT 2014 |Costs
For the duration of the reporting period, wemanaged a significant cost reduction in Italy,
Slovakia and Brazil.
Focused improvement
We were able to evolve significantly in applying
basic and intermediate tools to improve safety,
quality and cost. We successfully applied 101 tools
in Italy, 72 in Slovakia and 77 in Brazil.
Autonomous and professional
maintenance activities & Logistics
We managed to have ZERO breakdowns on pilot
machines in Italy during the last 24 months with
8% efficiency increase. In Slovakia we recorded a4% efficiency increase in 3 months, and in Brazil 8%
efficiency increase in less than 5 months.

people absenteeism and turnover, and our goal is to
reduce, close to 20% and 5%, respectively, in 2015.

Quality
We managed to have ZERO defects on the problems
addressed in Italy, Slovakia and Brazil.

Environment & energy
We managed to reduce electricity consumption by
1% in Italy and waste sent to landfills has been
reduced by 46% in Slovakia and 40% in Brazil.

Early management
Structuring the pillar focused mainly on reducing
losses in machinery and equipment implementation
during the early production stages.
People development
Structuring the pillar focused on improving
knowledge management in applying WCM methods
and tools. Indicators monitored in this pillar are

In 2014, we had three WCM
internal audits and four
external audits, globally.

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Certifications

how we produce our products

Product safety
GRI G4 PR1

To attend the most diverse markets, we
adhere to global certification standards
which give their stamp of approval to ourmonitoring and operationalization practices
regarding different aspects of our business.

Foundry | compressors | refrigeration
components and systems | electronics
Quality | ISO 9001
Occupation Safety and HealthManagement System | OHSAS 18001

The care regarding safety is present from projects that will result in
new products to internal and external tests (made with our partners)
conducted to ensure transparency and quality in the manufacturing
process. This evaluation is performed on 100% of compressorfamilies, following a representative statistical sampling.

Compressors | electronics

Quality | ISO 9001
Occupation Safety and HealthManagement System | OHSAS 18001

Moreover, we monitor 655 harmful substancesin order to avoid that they are present inprocesses and products. Our work is certified
by the QC080000 standard.

Compressors
Quality | ISO 9001
Occupation Safety and HealthManagement System | OHSAS 18001

Management of harmful products to theManagement of harmful products to theManagement of harmful products to theenvironment and RoHS (Restriction of Hazardous
environment and RoHS (Restriction of Hazardous
environment and RoHS (Restriction of Hazardous
Substances) | IECQ QC 080.000
Substances) | IECQ QC 080.000
Substances) | IECQ QC 080.000
Environmental Management
Environmental Management
Environmental Management
System | ISO 14001
System | ISO 14001
System | ISO 14001

SUSTAINABILITY REPORT 2014 |Compressors

Compressors

Quality | ISO 9001

Quality | ISO 9001

Occupation Safety and HealthManagement System | OHSAS 18001
Environmental Management
System | ISO 14001

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Customers
GRI G4 PR5

We continuously seek to stay close to our customers,
monitoring and understanding how they carry out theiractivities and, in this way, offer the best solutions to meettheir demands quickly and completely.
To know the customers’ satisfaction levels in relation to ourbrand and the main factors that influence their purchasing
decisions, since 2012, we’ve conducted an annual survey
whose results have helped us better understand this publiceach time more.
In 2014, we conducted a survey with 233 respondents in
12 languages, covering over 30 countries. In addition, we
consolidated the survey’s results in an unprecedented way
and created a site with refrigeration industry trends – which
will be available to customers participating in the survey.
Additionally, in 2014 we included in our sample potential
Embraco customers and thus expanded our survey scope tobetter understand what our customers (current and potential)
are looking for and how we can create more value for them.
These data are used in strategic meetings and help us toincreasingly focus on this public.
For 2015 we’ll use the same methodology (with even morerefinement) and we can continue measuring how well wemeet the needs of this strategic public and, consequently,
anticipate market trends.

SUSTAINABILITY REPORT 2014 |PARTICIPATION IN TRADE FAIRS AND BUSINESS EVENTSASHRAE
United States (2014 and 2015)
We participated, for the 36th and 37th consecutive
time, in AHR Expo, the world’s largest trade show on
cooling, air-conditioning and heating. During the event,
we presented differentiated commercial refrigeration
solutions, such as the Plug-in and VEGT8U.

CHILLVENTA
Germany (2014)
We were present at the 4th edition of Chillventa, where
we presented to the market the EMX3118Y compressor– created for commercial applications and tailoredespecially for small and medium-sized vertical beverage
displays. The product is manufactured in Slovakia.

ATMOSPHEREAPPLIANCE WORLD EXPO

United States and Europe (2014 and 2015)
Every year, we participate in discussions on the useof natural refrigerants and energy efficiency during
Atmosphere, an important event to exchange experienceand best practices with groups that are committed toinnovation and sustainability.

China (2015)
In this fair, we showcased to the market two new models
for household application: VESF, the most efficient andsilent compressor in the world (at minimum speed), andthe EME, the EM family’s most efficient compressor – amarket benchmark.

CHINA REFRIGERATION
China (2015)
In Asia’s most important event for the commercial refrigeration and aftermarket segment, we presented the
NEU product line, focused on commercial refrigeration and the CHR 2015 compressor, equipped with Fullmotion
technology and designed for 400-1000 liter coolers.

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Relationship with contractors

how we produce our products

Product labeling
GRI G4 PR3Since 1984, we’ve produced a magazine to contractors,
retail owners and technical assistants from therefrigeration segment. The Refrigeration Club – which
until 2012 was called Revista Bola Preta –, is one of themost important publications in the industry, and brings
technical content, interviews, opinion of recognizedmarket professionals, sustainability aspects, among
others, always in a didactic and detailed manner.

Training
Just as we’ve done in recent decades, during the reporting
period, we invested in training these professionals so thatthey’re able to provide increasingly qualified service to users
and to keep themselves informed about our major launches.
In 2014, we traveled more than 38,000 kilometers tooffer 14 technical lectures in Latin America impacting
more than 1,700 refrigeration technicians.

Refrigeration Club is published in Portuguese andSpanish, is quarterly and has a circulation of 14,000
copies distributed, free of charge, in different Latin
American countries.

To improve consumer and customer safety, we publish on our
website the compressors’ application manual with information about
electrical installation, mounting, handling, storage, good use andsolutions to the main technical problems that may occur, along with
documents that accompany the purchased products.
On the labels of our products, we divulge the certifications obtained
from the regulatory agencies and that certify the models’ safety,
such as seals from Underwriters Laboratories (UL), Association forElectrical, Electronic & Information Technologies (VDE), Instituto
Argentino de Normalización y Certificación (Iram), Rheinland –Technischer Uberwachungs-Verein Rheinland (TUV) and China Quality
Certification Centre (CQC).

Loyalty Program

CARBON FREE SEAL
In June 2014 the Refrigeration Club received theCarbon Free seal, a certification that recognizes
100% neutralization of greenhouse gas emissions
generated by the publication’s printing processes
and distribution.
To neutralize the emissions, we promote theplanting of more than 80 tree species per hectare
in Areas of Permanent Preservation (APPs),
offsetting 7.9 tons of emissions.

SUSTAINABILITY REPORT 2014 |Aiming to strengthen the relationship with retailers
and contractors, at the end of 2014, we launched abenefit and reward program for specialized stores,
their counter sales and contractors: 100% Embraco
Advantage Program. Through this action, we want torecognize companies and professionals that maintaina partnership with our company, trusting our brand andour product quality.
For this, we created a point system to offer this publicbenefits such as work tools – office supplies, tool
boxes, uniforms, etc. – and consumer goods – such as
electronics, housewares and sporting goods. In addition,
also part of this initiative is a discount club, which gives
access to exclusive offers on products and services.

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Post-consumption
Nat.Genius
In 2014, we launched Nat.Genius, a new operation thatuses the expertise gained in over 20 years in which we
carried out reverse logistics for our compressors in Brazil
to create a new business. Inspired by nature, where allcycles are closed and all elements are reused at the endof their useful life, Nat.Genius seeks to generate positive
impacts for the environment and value for Embraco aswell as for our stakeholders.

Scenario
According to Brazil’s Ministry of Environment, in 2012,
about 64 million tons of solid waste were produced in
the Country1 and only 2% of this material returned tothe supply chain through recycling. The remaining
98% ended up in dumps, controlled landfills andsanitary landfills.

Circular economy
Essentially, the circular economy concept
is to transform solid waste into inputs to
produce new products.
We can better understand this process in theillustration below:

BRAZIL IN 2012,

62 MILLIONTONS OF WASTE

2%
Recycling

Industry
Industrial production
generates waste
that´s discarded

Landfill

98%

CIRCULARECONOMY

17,8%

Dumps

58%

24,2%

Waste
Industrial waste andproducts at the end of theiruseful life are collected

Sanitary
landfills

Controlled
landfills

Processing
Separated parts receive
adequate treatment tobecome raw material inputs
and return to the industry.

Engineering
Discarded products areanalyzed and sorted, and thepotential of each of them as
raw material input is defined.

Specialized disassembly
Waste is disassembled sothat each part has its mostappropriate destination.

1. Information available at http://www.mma.gov.br/informma/item/10272-pol%C3%ADtica-de-res%C3%ADduos-s%C3%B3lidos-apresenta-resultados-em-4-anos

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Let’s work!
In 2014, we carried forward the reverse logistics
work of Embraco compressors (performed for morethan 20 years) and also incorporated in its operation
compressors from other manufacturers.
Through a logistical plan, waste arrived at the Nat.
Genius plants and there received a nobler destination,
being disassembled and recycled. The core of thecompressors’ motor, for example, could be reused in
the ventilation industry – after passing throughindustrial processes.
At the end of 2014, Nat.Genius’ two units and sales
office had nearly 100 employees.

NAT.GENIUS UNITS
In 2014, we also opened a second
unit of Nat.Genius beside our Foundry
in Joinville (Brazil), which focuseson disassembling refrigerators andwhite goods. The other unit continues
operating with Embraco’s compressor
factory, focused on dismantling andrecycling compressors.

SUSTAINABILITY REPORT 2014 |Results
GRI EN28

In 2014, through Nat.Genius we recycled 698,000
Embraco compressors, 103,000 compressors from othermanufacturers, which generated:• 4.6 thousand tons of steel• 1.8 thousand tons of iron
• 94 tons of aluminum• 562 tons of copper• 131,000 liters of oil

how we produce our products

Recognition
In 2014, Nat.Genius became part of the Ellen Macarthur
Foundation map, the foremost authority on World Circular
Economy – in Brazil, only two initiatives have obtained
recognition by the Institution. You can learn more byclicking here.

FutureFrom 2015 on, Nat.Genius’ plans are focused on
geographic expansion, that is, increase both its reach tocapture more waste, as well as its infrastructure to attend
other regions and increasingly foster circular economy.

Pilot project with collectors
To increase the reach and be able to collect more waste
to supply our factories, we carried out projects withcollectors of recyclable materials.
Through this pilot project, besides contributing to theenvironment, Nat.Genius plays a deeper social role,
fostering this market and generating income for thecollectors and their families.

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Innovation is our trademark
We’re leaders in technology and drivers of the global
scenario. For us, that means we have the constantchallenge of being at the forefront in developing newtechnologies and solutions that meet our customers’
demands.
For this, we have a Research & Development (R&D) area
composed of more than 500 professionals distributed infive countries, a professional development framework (WCareer, more information on page 48) designed to attract
the best talents and a 3% to 4% investment of ourannual revenue.
Currently, our R&D area is divided into three
departments:• Product Engineering: dedicated to creating new
solutions that surpass market needs and/or bring new
possibilities for the refrigerator industry.
• Commercial and Household Refrigeration: dedicated todeveloping new projects that use Embraco technology.
This sector is subdivided to give differentiated focus oncommercial and residential applications.
• Technology and Innovation: responsible for all
innovation management of products and processes
in R&D.

SUSTAINABILITY REPORT 2014 |Our main drivers
Every time our professionals and partners come together to think about new technologies
and compressors, the main driver of their creations is product development that meetsthe needs of customers and end users, anticipating trends and overcoming innovation
barriers. A reflection of this is our technology leadership in the markets where we
operate. One way to identify whether we’re on track is the Customer Satisfaction Survey,
conducted annually (more information on page 29). Besides these, there are other drivers
that direct our development. They are:Energy efficiency GRI G4 EN7
Produce compressors that consume each timeless energy is one of the focuses of our R&D team.
As main benefits, energy efficient compressors reduce
their environmental impact and consumer spending
on energy.
As an example we mention the Fullmotion technology,
which allows the final consumer to save up to 40%
on the electricity bill. Since its launch, more than 19
million compressors with this technology have alreadybeen sold, and due to their low energy consumption
when compared to other compressors, we’ve alreadygenerated savings of 8,552 million kWh around theworld – which would be enough to power the cityof San Francisco, in the United States, for more thanfour years.

Natural refrigerant gases
We pioneered the use of refrigerant gases that don’t harm
the planet’s ozone layer and we continue seeking solutions
that offer less and less environmental impact.
For over two decades we’ve prioritized using naturalrefrigerants that, in addition to being harmless to theozone layer, have a global warming potential contribution
that’s almost nil compared to the main refrigerants usedin the market.
Besides this important benefit, natural refrigerant gases
are significant factors in reducing energy consumption.
To position ourselves externally and strategically influence
the market on the subject, we have also launched the
Natural Refrigerants website.

In 2014, miniaturization of
our compressors provided
savings of 2,977 tons of
raw materials compared tothe previous year.

Miniaturization GRI G4 EN27
Our compressors weigh, on average, 5.8 kilos, however,in the past, this average has already been equivalent
to 7.2 kilos. This considerable difference is the resultof intense research and development. The fact that
products are increasingly smaller and lighter implies
reduced use of raw material – in the last five years wewere able to save 10.8 tons of material – and generatea gain in internal space for refrigerators that have ourcompressors, generating a great benefit for the final
consumer.
Cost reduction
Produce our products with increasingly lower cost is
an important driver to remain competitive around theglobe. For this, we try to be attentive to the market
demands and invest in improving our operational andadministrative processes, as well as use fewer natural
resources – water, energy and materials.

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Partnerships with universities and customers
Besides having our internal team, our innovation is
also the result of strategic relationships we have with
universities and customers.
We’ve maintained a partnership with the Federal
University of Santa Catarina (UFSC) – in Brazil –since 1982 and in recent decades, we’ve expanded
partnerships with other universities in order to join
expertises to discover new solutions.
In 2014, we celebrated the 30th anniversary of the first
paper we presented in the International Compressor
Engineering Conference, a major industry conference
that’s been held for 42 years from Purdue University,in the United States. During this time, we’ve presented
more than 100 articles and have made significant
contribution to researches on Refrigeration.
With our customers, the partnership focuses on morepractical issues, because they’re the ones who makeuse of the products. Therefore, we try to bring theminto the laboratories to develop – together – solutions
that are aligned to their demands (co-development).

PURDUE UNIVERSITY
Located in West Lafayette, Indiana (USA), Purdue
University was founded in 1869 with a donation
made by John Purdue, a businessman andphilanthropist from the region. Currently, theuniversity has more than 18,000 faculty and staff
and its students have already registered morethan 15,000 US patents.
The Purdue University College of Engineering
was founded in 1874 and has already trained
22 astronauts, including Neil Armstrong andEugene Cernan, who were, respectively, the first
and the last astronaut to walk on the moon.
The University is ninth among all the country’s
engineering schools that grant doctoral degrees
according to the News & World Report ranking.

Embraco Innovation Award
Created to encourage Chinese students and researchers, since 2011, we’ve
conducted the Embraco Innovation Award, a contest that rewards projects thatprioritize developing cooling solutions with high energy efficiency. In 2015, the 3rdedition of the award received 61 projects from Chinese universities and research
institutes, which competed in four main categories. The criteria that defined theawards were: level of originality and innovation; impacts and results of the projectin terms of energy efficiency; technical quality; real market feasibility potential;
and socio-environmental impacts.
The event that presented the grand prize winners was held in April 2015, in thecity of Shanghai, in China, and the project that received the US$ 40,000 incentive
for its development which proposed a cooling system driven by energy generated
from ocean fishing waste.

Besides this, to make sure we’re meeting thecustomers’ main demands by creating newtechnologies, we’ve included in our Customer
Satisfaction Survey (more information on page 29)
questions about innovation and, in this way, learn more
about their real needs.

SUSTAINABILITY REPORT 2014 |34

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DOING MORESUSTAINABILITY REPORT 2014 |35

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As part of our sustainability strategy, weconstantly evaluate the processes that makeup our operation in pursuit of lean thinking,that is, produce products with each time
fewer natural resources. This way of thinking
implies both a well defined environmental
responsibility policy, as well as a significant
cost reduction for Embraco.

Alongside the robust lean thinking strategy,
which has permeated the production
process for more than 30 years, we began,in 2013, implementation of the World Class
Manufacturing (WCM) methodology in all
our plants, which has enhanced the gains inoperations. You can learn more about WCM on
page 27.

This means that our teams are always focusedon avoiding waste of all inputs used in theoperation, such as water, energy, materials,
among others. To do this, we rely mainly on
two principles: production process studies – toeliminate bottlenecks, reprocesses and findthe most efficient way to produce – and always
maintain production adjusted to our demand –so there are neither excess inventories nor lossof our production.

Also within our strategy is the goal of
constantly reducing greenhouse gas
emissions (GHG). In addition to environmental
responsibility, reducing emissions means
being able to meet any environmental
legislation, avoiding any penalties and fines
as well as contributing to more effective risk
management (you can learn more on page 39).

SUSTAINABILITY REPORT 2014 |how we produce our products

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Doing more withless energy

Efficiency in offices
and production process GRI G4 EN6

GRI G4 EN3

As in previous years, in 2014, we had, globally,
several initiatives to reduce our energy consumption indifferent plants.

ENERGY CONSUMPTION IN 2014 (GJ)
Direct energy

Using less and less energy in compressor production isa goal in all our plants. In 2014, we consumed – globally– 1,477,833 GJ, virtually stable with the number
consumed in 2013. Analyzing direct and indirect energy
consumption, we observed that there was a slightincrease of 4% and 2% respectively.

ENERGY CONSUMPTION (GJ)

Natural gas

492,082

GLP

13,380Methanol

862

Diesel oil

2,760

Gasoline

166

Propane4,545

Ethanol

32

Electricity

8.58

Kerosene

181

Natural Gas

4.781

541,008

Methanol

0.009

Propane0.001

ENERGY INTENSITY RATE IN 2014
GRI G4 EN5Energy intensity rate (Kwh/unit)

Energy consumption in
kWh per compressor

2012

2013

2014

Var. 2014
vs. 2013

Direct551,004

522,703541,008

4%

Indirect

1,033,215

946,288963,825

2%

Electricity

963,825

GLP

0

TOTAL

1,584,219

1,468,991

1,477,833

1%

Total indirect energy consumption

963,825

Diesel0.026

TOTAL ENERGY CONSUMPTION

1,477,833

Gasoline

0.001

Total direct energy consumption
Indirect energy(compressors)(compressors)(compressors)(compressors)(compressors)

UnitedStatesElectricity

4,819

6,737

7,26

6,527

6,614

2,204

1,314

0,487

798,979

0,082

Natural Gas

3,076

8,716

7,106

3,892

5,689

6,535

0

0

41,663

0,000

Methanol

0

0

0

0,009

0

0

0

0

0

0,002

Propane

0

0

0,001

0

0

0,332

0

0

0

0

GLP

0

0

0

0

0

0

0

0

0

0

Diesel

0

0,004

0,044

0,038

0

0

0

0

0

0

Gasoline

0

0

0

0,003

0

0

0

0

0

0

China

SUSTAINABILITY REPORT 2014 |Italy

Slovakia

BrazilMexicoBrazil(electronics)

China(electronics)

Foundry

Itaiópolis

China: we introduced a system that recycles heatfrom air compressors, resulting in a 2,533,609 kWh
per year savings.

Energy consumption

64%

Indirect energy

Brazil: in the compressor factory’s administrative
area – located in Joinville, Santa Catarina (Brazil) – weexchanged conventional fluorescent lamps and lighting
fixtures for a set of highly reflective lighting fixtures andfluorescent lamps with individual switches. As a result, wehave reduced by 65% our electrical energy consumption
in the area. In the production process, repairing leaks inthe compressed air circuit represented a 20% savings inelectricity use.
Italy: we installed solar panels and began using thisenergy source to heat our canteen’s water. Additionally,
we had energy efficiency gains in compressor production
due to a new air compression system, which generated a
reduction of 727,200 kWh per year.

ENERGY CONSUMPTION
Energy Ration(Kwh/unit)

how we produce our products

36%

Direct energy

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Doing more withless water
GRI G4 EN8 | EN10

In 2014 globally we reduced our water consumption
by 6%, with emphasis on reduction coming from wells,
which decreased 24%.

Water reuse GRI G4-22

Water discharge GRI G4 EN22

Globally, 28% of all water that enters our units, either
from internal or external sources, is treated andrecirculated, and subsequently used in toilets, cooling
towers and for washing containers and floors.

In 2014, we discarded 549,085 m3 of water,a number 13% higher than in 2013.

WATER CONSUMPTION (M3) – EMBRACO GLOBAL
2012

2013

2014

Var. 2014
vs. 2013

Wells

332,195

273,448

207,198-24%

Water supply
networks396,616

385,735

410,8326%

Total

728,811

659,183

618,029-6%

DISCHARGE OF EFFLUENTS (M3) - EMBRACO GLOBAL
2012

2013

2014

Var. 2014
vs. 2013

Return to collection point

337,155

394,360

236,492-40%

Public sewage
system00109,765-

Evaporation

50,25444,781

83,61787%

Irrigation

219

46,233

119,211158%

387,628

485,374

549,085

13%

WATER REUSE – EMBRACO GLOBAL
2012
Total volume (m3)Recirculation rate (%)

2013

2014

225,511* 241,569*
31

243,697

27

28* Number updated with new formulas for calculation aimed at greater information
accuracy.

Total

Water consumption
Recirculated and reused water

66%

Water discharge (m3)34%549,085

31%
Water supply networks

485,374

Wells

387,628

28%
27%
2012

SUSTAINABILITY REPORT 2014 |2013

More information on page 58.
2014

2012

2013

2014

38

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Doing more withless waste

Doing more withless emissions

GRI G4 EN23 | EN25

GRI G4 EN16

In 2014, we produced 111,000 tons of waste, being: 108,000
tons considered non-hazardous and 3,000 tons consideredhazardous. The variation of the total waste in comparison with
2013 shows that there was a 0.5% reduction in the productionof these materials.

Together our operations around the globe, in 2014,
emitted, 100,936.21 tons of CO2, 64% of themconsidered direct – or scope 1 –, and 36% consideredindirect – Scope 2 – which are due to electricalenergy consumption.

Waste (t)131,558

Non-hazardous
waste (t)

2012

2013

2014

Var. 2014
vs. 2013

Economicrecycling

107,896

89,79089,376

7%

Environmental
recycling

1,042

1,625

2,126

31%

Incineration

0

0.1

0

-100%

18,511

16,702

16,505

-1%

0

0

0

0%

127,449

108,117

108,0080%Construction/
remedial waste
Subtotal

2012

2013

2014

Var. 2014
vs. 2013

Economicrecycling

306

308

312,2791%

Environmental
recycling

1,992

1,973

1,842

-7%

Incineration

844

784

702

-11%

Landfill

967

704

549

-22%

Subtotal

4109

3,868

3,405

-12%

131,558 111,985 111,413

SUSTAINABILITY REPORT 2014 |12%from other units

88%

from compressor
plants-14.9%-0.5%
111,985

Looking more closely at our direct emissions (Scope1), we observed that:

111,413+0.7%

Hazardous
waste (t)Total

Emissions by unit around the globe

Waste (t)TOTAL WASTE - EMBRACO GLOBAL

Landfill

how we produce our products

2012

2013

2014

131,558

111,985
-7.9%

Goals
We have a goal to send zero waste to industrial
landfills from our compressor plants by the end of
2018 and from the Foundry plant until 2022.
97% of waste generated globally in ourcompressor plants is recycled.

More information on page 60.

111,413

2012

2013

2014

In 2014, we reduced our greenhouse gas
emissions by 7.9%.
If we analyze the emissions generated by compressor
plants and from other units (Electronics, Foundry,
Components), we observe the following relationship:• 75% of them were stationary, that is, the result ofburning fuel to generate electricity;• 21% of them were fugitive, that is, the result ofburning fuel for transportation vehicles such as cars,
trucks, trains, aircraft, ships, etc; and• 4% of them were mobile, emissions that aren’t
physically controlled but that result from GHG
release due to production, processing, transmission,storage and use of fuels and other chemicals.
More information on page 58.

-0.5%

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EMPLOYEESSUSTAINABILITY REPORT 2014 |40

our principles

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Essential for the sustainability and consistency ofthe business, our employees are our most valuableasset. We count on a talented team, passionate forwhat they do and that’s why, we understand that ourrole is to provide these professionals all the tools
necessary for them to achieve extraordinary results.

Extraordinary performance
Highly effective organizationthat consistently produces above
expected results.

We’re a global company, composed of professionals
with different nationalities, genders, languages andcultures. We value diversity and believe that thischaracteristic is a strong competitive differential anddrives us to always innovate.
Therefore, our strategic human resource
management is based on the pillars:

New Leadership ModelGreat people
Diverse and prepared talents
to be future leaders.

Winning culture
Internally and externally recognized
as a great place to work.

SUSTAINABILITY REPORT 2014 |how we produce our products

Our business is transforming, as well as behaviors,
actions and strategies that we need to put in place tocontinue shaping our market. These changes led us
to review our strategic architecture and vision, also
reflecting on the current Leadership Model.
For us, leadership is a key factor in the transformation,a privilege that must be earned every day. All our
employees are considered in the new model, since
we believe that we are all leaders – whether of thecompany, an area, other people or ourselves.
The Leadership Model is a guide that permeates all
actions and indicates how to behave and act to havedifferentiated performance. Our belief is based on agroup of people acting with courage and passion forwhat they do, playing to win, developing their talents
and leading with speed. All these factors are importantto leverage the results of our business.

Our Leadership Model is based on:• Live and Lead Embraco Values: our values are thebase for what we do every day. They sustain the otherattributes.
• Create an engaging and inspiring strategy: reinforce
that our work is connected with the business strategy,
with a positive and innovative attitude.
• Attract and cultivate followers: reinforce thecommitment to developing the team and overcoming
challenges.
• Deliver differentiated results: reinforce ownership,
decide with speed and responsibility.
The strategic connection of the Leadership Modelwith our business leads to People Excellence,
ensuring competitive advantage and creating value.

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Profile of
our workforce
GRI G4-10

EMPLOYEES BY EMPLOYMENT CONTRACTOn December 31, 2014, we had 12,678
employees, distributed in seven countries
as follows:

Employees Embraco global
China – 2.352
Italy – 594		
Brazil – 6,176
Slovakia – 2,155

United States – 57
Mexico – 1,336
Russia – 8

China

United States

Italy

MexicoSlovakia

BrazilRussia

F

M

F

M

F

M

F

M

F

M

F

M

F

M

Definite time
(temporary)

88

316

0

0

0

0

0

0

18

107

10

20

0

0

Indefinite time
(permanent)

561

1,387

28

29

179

405

394

916

683

1,347

1,566

4,479

4

4

Interns

0

0

4

6

4

6

14

12

0

0

29

72

0

0

Total

649

1,703

28

29

183

411

408

928

701

4

4

1,454 1,605 4,571

China

4.7%
United0.4%
States10.5%
0.1%

Full workday (8h)

United States

Italy

MexicoSlovakia

BrazilRussia

M

F

M

F

M

F

M

F

M

F

M

F

M

648

1,687

28

29

170

373

394

916

701

1,454

1,470

4,195

4

4

EMPLOYEES COVERED BY COLLECTIVEBARGAINING AGREEMENTS
Unit

Percentage of employees
coveredBrazil

100%

China

79%

United States

Without workday
control

1

16

0

0

13

38

14

12

0

Total

649

1,703

28

29

183

411

408

928

701

0

135

Not applicable*

376

0

0

Italy

100%

1,454 1,605 4,571

44Slovakia

100%

Mexico73%

EMPLOYEES BY JOB CATEGORY
China

18.6%

Italy

F

48.7%

United States

Italy

MexicoSlovakia

BrazilRussia

F

M

F

M

F

M

F

M

F

M

F

M

F

M

President andVice-presidents

0

1

0

0

0

0

0

0

0

0

1

6

0

0

Executive Board

0

1

0

0

0

3

0

1

0

1

1

21

0

0

Management

6

8

1

3

2

8

1

6

0

6

6

45

0

2

United States

China

RussiaSlovakia

Leaders

22

30

3

6

6

13

10

21

5

25

21

70

1

1

BrazilMexicoAdministrative

150

283

22

13

35

62

31

123

95

206

310

852

0

0

Operational

444

1,342

2

7

136

319

353

765

601

1,216

1,266

3,577

0

0

Others

27

38

0

0

4

6

14

12

0

0

0

0

3

1

Total

649

1,703

28

29

183

411

408

928

701

4

4

SUSTAINABILITY REPORT 2014 |As a global company, we’re always vigilant to andcomply with all local laws of the countries where
we have plants and/or sales offices.

GRI G4-11

EMPLOYEES BY EMPLOYMENT TYPE

17%

Respecting labor relations

1,454 1,605 4,571* Our United States operation is run through a sales office and a warehouse,
which – according to US legislation – doesn’t require a collective bargaining
agreement.

42

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Multiculturalism
GRI G4-10

We’re a global company, with operations in seven countries on fourcontinents. We believe that people who bring different experiences
add new knowledge and different ways of seeing and understanding
our business. Therefore, we understand that this plurality establishes
an important competitive differential, whether internally, to transform
our business, or externally, because we understand and attend ourcustomers’ diverse needs in different parts of the world.
We value and celebrate Diversity in all our interactions, where thesynergy between the differences around common goals makes thecompany each time more prepared to act as an organization that’s intransformation, thinking and acting globally.
Diversity permeates our entire business, culture and relationships andis seen as a management model, fundamental for making decisions
about people, processes, products and markets. In practice, this means
more leadership involvement, building a diverse environment andaccessible to all.
We also believe that only transmitting and encouraging theidea of multiculturalism within the company isn’t enough.
Diversity management implies eliminating labels and prejudices,
encouraging our professionals so they know and learn otherlanguages, exchanging experiences with employees from othercountries, among other initiatives to eliminate the idea of adominant culture and encourage interaction and the exchange ofknow-how among people of different nationalities.

SUSTAINABILITY REPORT 2014 |Disabled people
Since 2008 we’ve had the Talents of Diversity
Program, which offers vacancies in different
sectors of Embraco and training courses for people
with disabilities, accelerating integration andemployability. So far, close to 250 people havebeen through the program, with an average of
60% of them being hired.
In addition to attracting and preparing disabled
people for the labor market, we seek to offer
independence to this public, creating accessible
physical spaces, sign language courses andtranslation along with internal awareness-raising.
In 2015, in line with our human resources strategy
and with this already established program, we
had an important evolution in hiring people
with disabilities: now these people are allocateddirectly into the areas of the company, according
to the availability of vacancies as well as jobs
and salaries compatible with the position. The
goal is to ensure process flow, encourage their
qualification inside and outside Embraco andensure their development.

Oliembraco
The traditional games of Embraco Internal Olympics(Oliembraco) arrived at its 27th edition in 2014. Heldsince 1988, Oliembraco is an event that encourages
interaction and team spirit among our professionals
and this year featured 23 male and 12 female
sporting events - twice the modalities disputed for in
the competition’s first edition.
For nine months, 4,500 employees participated in sports
tournaments such as soccer, volleyball, athletics, basketballand cycling, along with table games and even fishing.

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Disabled people
GRI LA12

Paraoliembraco
In 2014, the 8th edition of Paraoliembraco also
took place, one of our pioneering initiatives for
professionals with disabilities. According to theBrazilian Paralympics Committee, Embraco is the
only company in Brazil that holds a dedicatedParalympics for its internal public.
In May 2014, 150 employees competed in futsal
games for the deaf, basketball and field tennis
for people in wheelchairs, as well as bowling andtable games. One of this edition’s differential wasan accessibility fair that offered support services
for people with disabilities.

EMBRACO EMPLOYEES WITH DISABILITIESBrazil*

China

Italy

Slovakia

UnitedStates

MexicoRussiaVice presidents,
directors and managers

1

0

0

0

0

0

0

Leaders

2

0

0

0

0

0

0

Team

318

5

15

43

0

0

0

* Embraco Brazil plants don’t monitor diversity indicators for temporary employees.

BREAKDOWN OF VICE PRESIDENTS AND DIRECTORS BY AGE
Brazil

China

Italy

Slovakia

UnitedStates

MexicoRússiaUp to 30 years

0

0

0

0

0

0

0

31 to 50 years

5

2

3

1

0

0

0

51 years and over

2

0

0

0

0

1

0

Total

7

2

3

1

0

1

0

PARTICIPATION OF WOMEN IN THE WORKFORCESUSTAINABILITY REPORT 2014 |BrazilPequimQingdao

Italy

Slovakia

UnitedStates

MexicoRussiaVice presidents,
directors and managers

10%

43%

0%

15%

0%

3%

0%

0%

Leaders

23%

42%

1%

32%

17%

17%

31%

50%

Team

26%

18%

82%

31%

34%

20%

31%

75%

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Attraction and retention
Our primary people retention strategy is to analyze the potential of internaltalents and invest in their development for more strategic positions. For this,we have a structured Succession Committee process, composed of leadership,
which assesses employees with the potential to take on leadership positions
within the company.

Dismissals were performed as follows:
DISMISSALS IN 2014 BY GENDER
China

UnitedStates

F

M

F

M

F

533 1,369 168

275

9

7

3

BrazilF

The Succession Committee’s process is constantly evolving and uses 9box
methodology, recognized by the market. Also, we have a similar process fortechnical talents, who pass through a committee called Technical Talent Pool
which identifies potential researchers who the company will invest in.

Total

1,902

HIRINGS IN 2014 BY GENDER GRI G4 LA1
Brazil

China

Italy

MexicoSlovakia

Russia

F

M

F

M

F

M

F

M

F

M

F

M

F

M

594

1,412

89

158

2

2

1

5

202

476

45

105

1

1

Total

2006

247

4

6

678

443

16

MexicoSlovakia

Russia

M

F

M

F

M

F

M

10

101

472

41

116

1

0

13

573

157

1

DISMISSALS IN 2014 BY AGE GROUP

In 2014, globally we hired 3,091 people and dismissed 2,796. Hirings weremade as follows:

UnitedStates

M

Italy

150

2

BrazilChina

UnitedStates

Italy

MexicoSlovakia

Russia< 30 years

1,168

278

0

1

104

42

1

30 and 50
years

668

132

12

6

152

79

0

> 50 years

66

33

4

6

9

36

0

1,902

443

16

13

265

157

1

Total

HIRINGS IN 2014 BY AGE GROUP
BrazilChina

Estados
Unidos

Italy

MexicoSlovakia

Russia< 30 years

1,416

163

2

2

288

62

2

30 and 50
years

568

83

2

4

382

78

0

> 50 years

22

1

0

0

8

10

0

2,006

247

4

6

678

150

2

Total

SUSTAINABILITY REPORT 2014 |45

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Trainee program
To ensure our business’ sustainability, part of the strategy
includes preparing leaders for the future. Accordingly, we have a
global trainee program, carried out once a year in Brazil, Slovakia
and China. Upon being selected, trainees have the opportunity
to know different sectors and aspects of our business so that,throughout their career, are able to take on challenges indifferent areas.
Local hiring GRI G4 EC6
Because of our culture of valuing diversity, we have a strong
participation of local leaders in the operation, which gives us acultural wealth for the teams.
LOCAL HIRING(LEADERSHIP POSITIONS*)

Plant

2012

2013

2014

Brazil

100%

100%

100%

China (compressors)

86%

91%

100%

China (electronics)

83%

60%

81%

Italy

77%

91%

80%

Slovakia

88%

100%

86%

Mexico

2%

84%

63%

United States

66%

91%

0%

Russia

N/D

N/D

100%

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

SUSTAINABILITY REPORT 2014 |Compensation
Our remuneration policy is to compensate people according to theirperformance and their potential. To offer attractive remuneration,
we have the support of consultants to know the latest market
practices with regard to remuneration and benefits offered.
To identify wage growth opportunities for our professionals, we useinternal performance measurement tools and steer all leaders tolook for internal promotion so as to, in this way, value the careers of
all talents.
RATIO OF THE LOWEST WAGE COMPARED TO LOCALMINIMUM WAGE GRI G4 EC5Unit%

Brazil132%

China (compressors)

100%

China (electronics)

120%

United States

186%

Italy

104%

Slovakia

122%

Mexico157%

Profit sharing program
Since 1996 we’ve had a Profit Sharing Program(PPR), created to motivate our employees toachieve extraordinary results and to constantly
develop themselves.
To remain updated, this program was revised in2013 and, from that year on, in addition to theoverall company goals, each area has to choose two
specific goals aligned with Embraco’s strategy.
Additionally, our PPR program includes an individual
portion – called Performance Award – that rewards
employees according to their performance.

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Benefits
Our benefits policy expresses the care we take with
employees and the mission to provide them and theirdependents a better quality of life.
In addition to strictly complying with local labor laws
in all the countries where we operate, we also have aSports Association, in Joinville (Brazil) – where our largest
flow of workers is located – which is a local reference
for leisure and sport, offering several activities for both
employees as well as the community.
We also invest in developing our people throughscholarships. This is a benefit for employees fromoperational and administrative levels, which offers
financial assistance to those wishing to take technicaland post-graduate courses. Thinking strategically,scholarships always focus on the employee’s next
hierarchical level, so he can be ready for his next step in
Embraco. In 2014, we granted 94 scholarships, globally,
which contribute to high performance.
In addition, we continually invest in on-the-job training
and job rotation for employees from all our units,
stimulating interaction among different cultures andensuring professional development aligned to thecompany’s needs.

SUSTAINABILITY REPORT 2014 |Pension plan GRI G4 EC3Plants in Brazil, Italy and China offer a pension planfor their employees. In other countries where we
operate there is no such benefit.
• Brazil: benefit based on the employee’s
nominal salary, who contributes 1%, while
we contribute with the other part (varying
according to the professional’s age): foremployees with up to 44 years we offer
1%; from the age group 45-54 years old,
we offer 1.5%; and for those between 5560 years we offer 2%. At 60, the employee
receives his pension – it can be anticipatedat 55 years of age or by disability at any
time. In case of death, the pension is paid todependents.
• Italy: joining the pension plan is voluntaryand is foreseen in collective agreements.
The contribution is 1.4% (employees) and
4% (managers). We contribute with thesame value.
• China: has a statutory pension insurance forall employees, and the contribution is 8% by
the employee and 20% by us.

how we produce our products

Professional development
Performance appraisal
We believe that as important as achieving the goals, is understanding
how to achieve them, so, we evaluate our professionals through
Extraordinary Performance & Results (EP&R), an evaluation model
structured in five dimensions:• Results x goals• Work scope• Leadership practices• Adherence to Embraco’s culture• Personal and talent development
In some cases, we use – in addition to EP&R – 180 degree appraisal,
which consists of the employee’s self-assessment, his/her manager’s
assessment and his/her direct subordinate’s assessment.
EMPLOYEES THAT RECEIVE PERFORMANCE ANALYSISGRI G4-22 | LA11

Plant

2013

2014

F

M

F

M

Brazil

100%

100%

100%

100%

China (compressors)

100%

100%

100%

100%

China (electronics)

44%

56%

42%

58%

Italy

30%

70%

30%

70%

Slovakia

100%

100%

100%

100%

Mexico

76%

24%

22%

78%

United States

100%*

100%*

100%

100%

Russia

100%

100%

100%

100%

* Different numbers of those reported in
the 2013 Sustainability Report due to aninterpretation error of the indicator occurred inthat year.

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Career compass

W Career

For us, improving our employees’ professional
growth is very important. That’s why, in 2014, wedeveloped and shared with our administrative
public the Career compass, a plan that centralizes,
stimulates and directs all individual development.

Our career process is the driving thread that
identifies people with the potential to take on
greater responsibilities within our company.

Each one of our employees is responsible for his/
her Career compass, in partnership with his/hermanager. With it, it’s possible to establish specificplans to: ensure professional development; build
important competences needed for the current
position and/or future positions; identify passions
and strengths as well as plan ways to use them atwork; create specific plans to achieve career goals,
defining the desired position and then direct futureand specific positions and/or experiences to achieve
them; put the development plan into action.

SUSTAINABILITY REPORT 2014 |In addition, we enable our employees to develop thetechnical side (specific competences) along with the
behavioral side (see Leadership Model). Both impact
on their performance and growth potential.

ADMINISTRATIVEPROJECTLEADERSHIP

how we produce our products

TECHNIQUE

People who have a greater focus on specificcompetences can follow the technical career. While
those who opt for behavioral development, follow
the administrative career (leadership development).
If our employees desire both of them, their pathwithin Embraco will be project leadership or
technical leadership. We call the set of these three
options - W Career.

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Leadership Academy
Corporate education
After the restructuring process of our Corporate
Education model in 2013, when we began working
more focused on a People Training Strategic Modeland engaging leadership, in 2014, we focus ondeveloping our people through the following ways:

After mapping the skills desired in each leadership position, in 2014, we
began providing – through the people development model – the necessary
tools so that our leaders can lead their teams to great results.
The Leadership Academy, a long term global development program designed
to offer solutions to our leaders at different levels.

• Technology: use tools such as internet,
podcasting, videos, e-learning to takecorporate education to our employees;

In 2014, 338 employees participated in the Leadership Academy,
which offered more than 5,000 hours of training.

• Relationship: employ practices such ascoaching, feedback, mentoring, among others,
to bring our employees to our culture;

Engagement research
Conducted annually, our Engagement Survey brings many contributions
to our leadership’s development, who has their strengths and weaknesses
mapped and received individual feedback on their skills and on how tocontribute so that Embraco has better results. It also helps us to measure
the level of engagement that our employees possess.

• Classroom: offer scholarships, classes,
seminars and trainings in a classroom setting
to develop our talents; and• Practice: conduct workshops, benchmark
studies, job rotations to bring more references
to our professionals.

AVERAGE NUMBER OF TRAINING HOURS GRI LA9
China(Qingdao)

China (Beijing)

United States

Italy

MexicoSlovakia

Brazil

F

M

F

M

F

M

F

M

F

M

F

M

F

M

Executives

0

5

48

49

24

24

187

70

57

57

127

994

0.19

0.73

Middle management

10

10

66

79

0

0

56

61

45

45

496

3,259

0.23

0.57

Team

22

5

36

44

0

0

46

46

36

36

6,812

22,7872.82

6.25

By employee

20

5

38

44

0

0

96

57

36

36

11

18

2.31

4.91

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Health and safety
Our employees’ safety is a very relevant issue forus. Therefore, in 2014 and 2015, we reaffirmed ourcommitment to zero accidents by updating andstrengthening communication about our Safety
Golden Rules, globally. In addition to making thembroader, we simplified them, and brought themcloser to employees’ daily lives, ensuring theirunderstanding and adoption of safe behaviors.

The Golden Rules have existed since 2010
and are based on the leading practices, legal
requirements, global procedures and knowledge
acquired by us, defined to guide daily behavior
in all activities performed by our employees,
suppliers and visitors.

Behavior-Based Safety
To avoid accidents we’ve adopted globally the use of
the tool Behavior-Based Safety (BBS), a program thatseeks to build a safe environment in the workplacethrough observation of the professionals’ behavior andfeedbacks.

RegionBBS is based on three main elements:
Observations and conversations proposed by BBS allow
us to observe best safe behavior practices and also
listen to our professionals and understand the cause ofrisky behavior. This way we can give positive feedback
to reinforce the importance of working safely and guide
employees to have increasingly safe behavior.
In 2014, through BBS, more than 390,000 positive
feedbacks were given to our employees.

SUSTAINABILITY REPORT 2014 |GLOBAL BBS NUMBERS
Feedbacks received by Feedbacks received by
employees in 2013
employees in 2014

Brazil214,134

164,940

China

115,798

88,397

Italy

10,1652,653

Slovakia

119,649

95,876

Mexico26,20628,461

United States

755

428

EECON BR

2,223

530

EECON CN

17,43814,485

TOTAL

506,368

395,770

We also developed a global assessment project of all installedmachinery in order to increase the safety of our manufacturing
processes. Besides enabling the exchange of best practices
among plants to find a solution to any eventual problems, thisinitiative seeks to standardize best practices in Health and
Safety management.

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Our units in Brazil count on – besides BBS – theInternal Commission for Accident Prevention(CIPA), composed of Embraco employees andwhich comply with the Regulatory Standard 5(NR-5) of the Brazilian Ministry of Labor.
In 2014, we had 32 “cipeiros” –as the accident
prevention commission members are called –who carry out procedures focused on safety suchas monthly meetings, inspections, participationin improvement groups, running campaigns,
internal work accident prevention week and theenvironment (SIPATMA), among other activities.

Other health and safety initiatives
In addition to the initiatives described above, we
carried out other efforts to reduce the number ofincidents. They are:

Indicators
In 2014, we maintained our injury rate, reduced our occupational
illness rate and increased our days away for accident rate, as
shown in the following table:• Campaigns on safety, health and environment
focused on awareness of professionals working inour operations, addressing topics such as: WorldDay for Safety and Health at Work and World No
Smoking Day;
• Continuity and consolidation of machinery
protection project (machine guarding);• Participation of the EHS area in all project
development stages and machinery purchases
in all units, establishing the necessary deliveries
for proper risk management as well as seeking
an environment free of injuries andenvironmental harm.
• Creation/revision of global standards for various
elements of the EHS system such as Working
at Heights, Preparedness and Response to
Emergencies and Confined Spaces.

how we produce our products

HEALTH AND SAFETY GRI G4 LA6
Injury rate

Occupational
illness rate

Days away
rate foraccidents

2013

2014

2013

2014

2013

2014

Brazil (compressors
and offices)

1.18

1.17

0.04

0.00

2.28

2.76

China (compressors)

0.37

0.32

0.00

0.00

0.00

4.75

China (electronics)

0.00

0.00

0.00

0.00

0.00

0.00

Italy (compressors)

0.51

0.00

0.00

0.00

17.67

0.00

Slovakia (compressors)

2.49

0.21

0.00

0.00

6.21

7.45

United States

0.00

0.00

0.00

0.00

0.00

0.00

Mexico (compressors)

0.75

0.61

0.00

0.00

2.67

3.41

Brazil (electronics)

0.00

0.00

0.00

0.00

0.00

0.00

Components

0.70

0.8

0.00

0.00

0.00

0.00

Foundry

3.11

0.48

0.00

0.00

7.76

0.00

Total Embraco global

0.72

0.72

0.02

0.00

2.69

3.68

For 2015, EHS’ goal remains, to avoid accidents andensure the safety of all our employees.

2. Em Português: Saúde, Segurança e Meio Ambiente.

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SOCIALSUSTAINABILITY REPORT 2014 |52

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GRI G4 EC8 | SO1

We believe that we have an important role in all the communities
where we operate, because together we’re able to transform realities.
Accordingly, we make every effort to engage our employees in social
projects that bring benefits to people that live near our plants andoffices around the globe.
In 2014, aligned to our global social investment policy, we plannedand executed various social projects that contributed to the wellbeing of more than 37,000 people in the community. During thisperiod, we invested US$ 245,008 and offered 10,294 hours ofcommunity service, with actions such as Embraco Ecology Award –which this year reached its 22nd edition – the Embraco Volunteer
program and Global Volunteer Day. Actions like this generatecompetitive advantage for us and contribute to build a betterbusiness and a better world.

PRIVATE SOCIAL INVESTMENT (US$)
Unit

2012

2013

2014

Brazil241,402

190,710

149,858

United States

2,550

8,700

2,025

Slovakia

52,19862,17359,034

China

7,103

6,600

7,403

Mexico

1,500

14,50015,544

Italy

91,2282,533

11,144TOTAL

395,982

285,216

245,008

Embraco Ecology Award
In 2014, we held the 22nd edition of the Embraco
Ecology Award, which aims at fostering environmental
education between public and private schools in thecity of Joinville, Santa Catarina (Brazil). Throughthis award, we seek to stimulate the municipality’scommunity to think of ways to use less water andenergy, improve acoustic comfort, among othersolutions that benefit the environment.
The award is divided into the categories Action
and Transformation, with the winners receiving,
respectively, R$ 8,000 and R$ 24,000 to develop
their project. In the last edition five institutions wereawarded:In addition to the monetary value, the Embraco
Ecology Award offers support to the winners’ activities,
such as monthly monitoring of projects by consultants
specialized in Environmental Education, training
workshops for the projects’ coordinating team inschools, visits by Embraco to check the projects’progress and to publish the bimonthly magazine called
Ambiente-se, which aims to disseminate the actions
that are being implemented by schools.
For more information on the Award access theblog www.premioembracoecologia.wordpress.com
or our site.

Action category:• CEI Amandos Finder• CEI Infantil Estrelinha Brilhante• CEI Meu Pequeno Mundo• CEI Miosótis
Transformation category:• CEI Espinheiros

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Global Volunteer Day
Global Volunteer Day is a global event that seeks to value
the beauty of the communities and, through volunteer work,
aims to transform reality by constructing a dream. Using
the Oasis methodology, we try to understand what themain needs of the communities in which we operate are,assessing what actions can be carried out.
The program encourages our employees to set aside one or
two days a year to work in a specific place, doing different
activities that directly benefit the population. In 2014, theactivities carried out included:

Joinville

Itaiópolis

Held at the Mayor Luiz Gomes Municipal School, volunteers
built an educational garden in the shape of a Mandala, painted
the facade, the walls, pillars, benches, handrails, among
other things, cleaned up the facades and interior spaces, andrevitalized green spaces such as gardens, playgrounds andparking lot.

About 70 people (of these, 52 are our
employees) participated in actions in Angelsof Tomorrow Municipal School. The volunteers’
activities included gardening, garden and fence
maintenance along with painting different
items, building a doll house, cleaning theschool internally and externally, creating a TV
and reading room from recyclable materials,
building a storage area for scrap materials.

The action counted on 120 people on the first day and 180
the second, the vast majority of them Embraco employees– which together with the school personnel, parents andstudents carried out the proposed activities. In addition tovolunteers, the event had the support of government agencies
and companies which provided supplies and equipment.

SUSTAINABILITY REPORT 2014 |• China: more than 50 volunteers helped the local community
paint and renovate walls and organize inventory.
• Slovakia: our more than 60 volunteers made improvements in
the Slovak Paradise National Park, such as renovating the water
spring and garbage collection. The goal is to make it a more
attractive and comfortable place for tourists. In 2013, it was
visited by approximately 3400 people.
• Mexico: we worked in the Guadalupe Zuno Arce elementary
school, by restoring benches and concrete tables, restoringwater drains, water pumps and lighting, among other activities.
Also, we conducted 5S training for teachers. Approximately 30
employees participated in the action.

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Environmental Network
In 2014, we were part of, for the second consecutive
year, the Embraco Environmental Network, a sharedinitiative with the government, public schools andprivate entities, and developed for children andyouths from the municipality of Itaiópolis (SC, Brazil),to create actions that contribute to building a moresustainable world.
In this second edition, more than 3,500 students from
17 institutions were involved in the project, which
had as themes School Gardens As Educating Spaces
and Consumer Awareness. Students participated in
educational activities and were involved in programs
such as Health in Schools and Selective Trash
Collection (both of government origin). To support
the children and youths, consultants specialized inenvironmental education were appointed and learning
meetings and training activities were conducted – suchas lectures and workshops.
During the work, the schools sent a monthly reportwith the activities developed – published in the blog
https://redeambientalitaiopolis.wordpress.com – andat the end of the year, there was a closing event, which
aimed to share experiences and integrate participants,
and a recipe book was released on the Network,
published and made available by us to all Network
participating educational institutions.

SUSTAINABILITY REPORT 2014 |how we produce our products

Social Investment
in Slovakia
In Slovakia, four elementary schools and four
kindergartens from the Spisska Nova Ves district
received financial support for their projects carriedout which had as the theme Ideas for Volunteering(the projects from these schools received the
Embraco Ecology Award).
Among the projects that stood out is the “ecohandcrafts” – which included traditional farming,beekeeping and soap production – a project thataims to eliminate the plants that cause allergies
from a particular neighborhood, and an initiative
to restore a chapel.

“OUR CITY”
During two days in June, 192
volunteers (among them 40 Embraco
employees) carried out several actions
to benefit 13 cities in Slovakia. Amongthe voluntary actions conducted by Our
City’s 4th edition – event of voluntaryactions that has Embraco’s support –fences were painted and trees planted
by people with disabilities.

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ADJACENTSUSTAINABILITY REPORT 2014 |56

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Direct and indirect global
energy consumption
GRI G4 EN3 EN4

how we produce our products

ENERGY CONSUMPTION (GJ) - COMPRESSOR UNITS
China

Italy

Slovakia

BrazilMexicoTotal

Direct energy

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Natural gas

68,60657028,93

52,841

43,025

114,796

112,255

206,330

205,662

39,27660,286

481,849478,256

LPG

0

0

0

0

0

0

5,880

5,286

0

0

5,880

5,286

Methanol

0

0

0

0

0

0

0

444

0

0

0

444

Diesel oil

220

0

0

20

2,006

651

1,926

1,849

37

37

4,189

2,556

Gasoline

1,449

0

0

0

1,801

0

131

164

2

2

3,383

166

Propane

0

0

0

0

0

22

0

0

0

0

0

22

Ethanol

011,0143

0

0

0

21

0

0

0

0

0

32

Kerosene

070,686

0

0

0

27

0

82

0

0

0

181

Subtotal

70,275

57,111

52,84143,044

118,603112,975

214,267

213,486

39,31560,326495,301

486,941

Indirect energy

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Electricity

110,224

97,66043,41236,358

126,749

125,372

361,046

377,045

56,451

76,613

697,883

713,047

TOTAL

110,224

97,66043,41236,358

126,749

125,372

361,046

377,045

56,451

76,613

697,883

713,047

ENERGY CONSUMPTION (GJ) – OTHER UNITS
Components

Brazil (electronics)

China (electronics)

United States

Total

Direct energy

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Natural gas

0012,105

11,572

0

0

0

0

2,003

2,254

14,10813,826

LPG

4,235

4,447

3,367

3,647

0

0

0

0

0

0

7,602

8,094

Methanol

393

418

0

0

0

0

0

0

0

0

393

418

Diesel oil

22

30

1,168

175

0

0

0

0

0

0

1,190

204

0

0

0

0

0

0

0

0

0

0

0

4,258

0

0

0

0

0

0

0

266

4,109

4,524

Ethanol

0

0

0

0

0

0

0

0

0

0

0

Kerosene

0

0

0

0

0

0

0

0

0

0

0

Gasoline
PropaneSUSTAINABILITY REPORT 2014 |Foundry

4,109

Subtotal

8,759

9,153

16,64015,393

0

0

0

0

2,003

2,520

27,402

27,066

Indirect energy

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Electricity

14,971

16,864

218,836

220,485

6,733

6,050

6,044

6,186

1,822

1,192

248,405

250,778

TOTAL

14,971

16,864

218,836

220,485

6,733

6,050

6,044

6,186

1,822

1,192

248,405

250,77857

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Water consumption GRI G4 EN8Emissions
GHG EMISSIONS (tCO2)* – COMPRESSOR UNITS
China

Italy

Slovakia

BrazilWATER CONSUMPTION (M3) - COMPRESSOR UNITS
Mexico

Total

China

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Direct emissions

5,408

4,300

2,954

2,366

7,213

6,214

17,335

18,102

2,143

3,324

35,05334,306

Wells

Indirect emissions

30,682

16,277

5,831

4,878

8,872

8,776

9,650

14,122

9,408

10,61964,44454,672

Total

36,091

20,577

8,785

7,224

16,085

14,99026,98532,224

11,551

13,944

99,497

88,958BrazilFoundry

Mexico

Total

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

0

0

139,631

106,90730,29817,4810000

169,929

124,388

Water supply
networks

118,336

109,108

73,037

92,837

10,743

7,318

86,68884,43076,28285,583365,085

379,276

Total

118,336 109,108 212,668 199,744

41,041

24,79986,68884,43076,28285,583535,014 503,664

WATER CONSUMPTION (M3) - OTHER UNITS

China (electronics)

United States

Total

Components

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Direct emissions

563

576

1,009

920

0

69

0

4

1,619

1,568

Indirect emissions

400

637

5,856

8,287

1,683

1,258

316

207

8,436

10,389

Total

964

1,214

6,865

9,207

1,683

1,327

316

211

10,056

11,958SUSTAINABILITY REPORT 2014 |Slovakia

2013

GHG EMISSIONS (tCO2)* – OTHER UNITS
Components

Italy

Foundry

Brazil(electronics)

China(electronics)

United States

Total

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Wells

11,2385,196

88,524

77,614

0

0

3,757

0

0

0

103,519

82,810

Water supply
networks

4,040

7,257

11,126

19,286

2,240

1,447

0

3,566

3,243

0,05

20,64931,556

Total

15,27812,45399,65096,900

2,240

1,447

3,757

3,566

3,243

0,05

124,168 114,366

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Water discharge GRI G4 EN22

Water reuse GRI G4

DISCHARGE OF EFFLUENTS (M3) - COMPRESSOR UNITS
Brazil
2013
Return tocollection point

how we produce our products

Italy

Mexico

WATER REUSE IN 2014 (M3) – COMPRESSORS UNITSSlovakia

China

Total

2014

2013

2014

2013

2014

2013

2014

2013

2014

146,782 105,868

38,98900079,34579392

50,869

0

2013

2014

315,985 185,260

Public sewage
system

0

0

0

0

0

52,23100052,521

0

104,752

Evaporation

28,34328,145

2,052

0

1,086

27,47100

014,996

31,481

70,612Irrigation

38,972

38,70200217

24,96800029,48639,18993,156

Total

214,097 172,715

41,0410

1,303

104,670

79,34579,39250,86997,003

386,655 453,780

China

BrazilItaly

Slovakia

MexicoTotal

Total volume

29,486

152,091

0038,935220,512% reused

21.28

43.23

0

0

31.27

30.45

WATER REUSE IN 2014 (M3) – OTHER UNITS
Components

Foundry

Brazil(electronics)

China(electronics)

United States

Total

Total volume0

23,18500023,185% reused

0

19.31

0

0

0

16.83

DISCHARGE OF EFFLUENTS (M3) – OTHER UNITS
Components

Foundry

Brazil(electronics)

China(electronics)

Total

Total

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

Return tocollection point

8,601

8498

63,777

42734

2,240

0

3,757

0

78,375

51,232315,985 185,260

Public sewage
system

0

0

0

0

0

1,447

0

3,566

0

5,013

0

104,752

Evaporation

1,035

996

12,26512,009000013,30013,00531,481

70,612Irrigation

3,364

3,237

3,679

22,818

0

0

0

0

7,044

26,05539,18993,156

Total

13,001

12,731

79,721

77,561

2,240

1,447

3,757

3,566

98,71995,305

386,655 453,780

SUSTAINABILITY REPORT 2014 |

2014

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Non-hazardous and hazardous waste GRI G4 EN23 | EN25
TOTAL WASTE (t) - COMPRESSOR UNITS
China

BrazilItaly

TOTAL WASTE (T) – OTHER UNITSSlovakia

MexicoTotal

Non-hazardous
waste

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Economic recycling

7,914

5,277

50,16851,219

5,006

3,443

19,701

19,767

6,150

8,676

88,93988,382

Environmental
recycling

229

168

73

535

544

403

2

139

726

739

1,574

1,984

Incineration

0

0

0

0

0

0

0

0

0

0

0

0

Landfill

842

883

1,317

1,154

7

128

563

513

70

121

2,799

2,799

Construction/
remedial waste

0

0

0

0

0

0

0

0

0

0

0

0

Subtotal

8,985

6,328

51,55852,908

5,557

3,974

20,266

20,418

6,946

9,536

93,312

Hazardous waste

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Economic recycling

23

16

226

226

0

0

52

49

0

Environmental
recycling

6

1

61

67

23

49

1,705

1,687

Incineration

32

68

635

550

0

0

0

Landfill

58

0

78

92

219

89

Subtotal

119

85

1,000

935

242

139

SUSTAINABILITY REPORT 2014 |Non-hazardous
waste

Components

Foundry

Brazil(electronics)

China(electronics)

United States

Total

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Economic recycling

707

753

126

196

0

0

18

46

0

0

851

994

Environmental
recycling

48

41

2

0

1

100

0

0

0

1

51

142

Incineration

0

0

0

0

0

0

0

0

0

0

0

0

Landfill

60

33

13,84013,611

1

7

2

2

0

54

13,903

13,707

Subtotal

815

827

13,96813,806

2

107

20

48

0

55

14,805

14,843

93,165

Hazardous waste

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

Economic recycling

13

22

3

0

83

0

0

0

0

0

99

22

0

301

291

Environmental
recycling

4

4

3

2

0

0

0

0

0

0

7

6

151

33

1,946

1,837

Incineration

6

4

19

13

0

0

2

13

0

0

27

31

0

60

52

727

671

Landfill

6

4

51

40

0

5

0

0

0

0

57

50

291

226

58

91

704

499

Subtotal

29

34

76

56

83

5

2

13

0

0

190

108

2,048

1,962

269

176

3,678

3,297

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GRI
SUSTAINABILITY REPORT 2014 |61

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PROFILE
Ref.

Description

PROFILE
Direct response or indication on page

Ref.

PROFILE 1. STRATEGY AND ANALYSIS
G4-1
G4-2

Statement from the most senior decision-maker about
the relevance of sustainability to the organization
Description of key impacts, risks and opportunities

Message from management
Principles that unite and define us

2. ORGANIZATIONAL PROFILE
G4-3
G4-4
G4-5
G4-6
G4-7
G4-8
G4-9
G4-10
G4-11
G4-12
G4-13
G4-15

G4-16

Name of the organization
Primary brands, products, and/or services
Location of organization’s headquarters
Number of countries where the organization operates
Nature of ownership and legal form
Markets served
Scale of the organization
Profile of the workforce
Percentage of employees covered by collective
bargaining
Description of company's supply chain
Significant structural changes during the reporting
periodExternally developed economic, environmental, andsocial charters, principles, or other initiatives to which
the organization subscribes or endorses
Significant participation in advocacy associations
and/or national/international entities in which theorganization: has seats in groups responsible forcorporate governance; participates in projects orcommittees; contributes with substantive funding
beyond the basic rate as an associated organization

SUSTAINABILITY REPORT 2014 |how we produce our products

Profile and strategy
Profile and strategy
Profile and strategy
Profile and strategy
Whirlpool S.A. compressor unit
Profile and strategy
Profile and strategy
Answered in text
Respecting labor relations
Suppliers

Description

Direct response or indication on page

3. IDENTIFIED MATERIAL ASPECTS AND LIMITS
G4-17
G4-18
G4-19
G4-20
G4-21
G4-22
G4-23

List of entities included in the financial statements
Process to define report content and boundary
List of material aspects identified in the content
definition process
Limit of each material aspect for the organization
Limit of each material aspect outside the organization
Explanation of the effect of any re-statements of
information provided in earlier reports
Significant changes from previous reporting periods inthe scope, limit of aspects addressed

Due to strategic reasons, this information is not disclosed
About this Report
About this Report
About this Report
About this Report
Doing more with less / Our employees
About this Report

4. STAKEHOLDER ENGAGEMENT
G4-24
G4-25

Profile and strategy

G4-26

Our commitment to the planet

G4-27

List of stakeholder groups engaged by theorganization
Basis used to identify and select stakeholders forengagement
Approach adopted by the company to engage
stakeholders and frequency of engagement
Main topics raised during the stakeholder
engagement and measures adopted by the company
to address them

About this Report
About this Report
About this Report
About this Report

5. PROFILE OF REPORT
Fostering our sector’s development

G4-28
G4-29
G4-30
G4-31
G4-32

Reporting period
Date of most recent previous report
Reporting cycle
Contact data for questions regarding the report
Option for applying (core or comprehensive) GRI index
guidelines and external verification

About this Report
About this Report
About this Report
Credits
This report complies with the G4 Core option Guideline62

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PROFILE
Ref.

Description

PROFILE
Direct response or indication on pageRef.

6. GOVERNANCE
G4-34

G4-37

G4-38
G4-39

G4-40

G4-41

G4-48

G4-49

Governance structure, including committees
Consultation processes used between stakeholders
and the highest governance body in regard to
economic, environmental and social topics. If theconsultation is delegated to other structures, organs
or persons, indicating the existing feedback processes
to the highest governance body
Composition of the highest governance body and its
committees by:
Indicate whether the president of the highest
governance body is also an executive officer
Selection and appointment processes to the highest
governance body and its committees, including
whether factors such as diversity, independence,
knowledge and experiences and involvement of
stakeholders (including shareholders) are considered
Processes of the highest governance body to ensure
prevention and management of conflicts of interest
Organ or position of the highest level that analyzes
and formally approves the organization’s sustainability
report and ensures that all material aspects are
addressed
Process used to communicate critical concerns to thehighest governance body.

SUSTAINABILITY REPORT 2014 |how we produce our products

Corporate Governance
Whirlpool S.A. holds an annual meeting with its
shareholders. Additionally, it also has a permanentcommunication channel available, which can be accessedby the site, by phone and by email.

Description

Direct response or indication on page

7. ETHICS AND INTEGRITY
Organizational values, principles, standards and normsof behavior, such as conduct and ethics codes

Mission, vision and values

G4-57Internal and external mechanisms adopted by theorganization to seek guidance on ethical behavior
and in accordance with the law, such as relationshipchannels (ex .: ombudsman)

All our employees can find on the Intranet the Code of
Ethics, global compliance policies and a Question andAnswer section on the subject. In addition, the Legal
office, Human Resources area and managers of eacharea are always accessible, being a point of referencein providing information about behavior, if and whenrequested.

G4-58

Internal and external mechanisms adopted by
the organization to communicate concerns about
unethical behavior or incompatible with thelegislation and issues related to organizational
integrity, such as routing concerns by the hierarchicalpathways, mechanisms to report irregularities andcomplaint channels

The company establishes different channels to receive
any report. Each employee can report their concerns
directly to upper management, to HR or legal. In addition,
Embraco’s units have boxes where information written
on a paper can be deposited anonymously. You can learn
more information on page 22.

G4-56

Corporate GovernanceNot applicable
All members of our governance bodies are electedaccording to the Bylaws and local law. As selection
criteria competences and knowledge about the company
and its business are taken into account.
Ethics and transparency

Vice Presidency of Communication and Sustainability
Whirlpool S.A. holds an annual meeting with its
shareholders. Additionally, this public has a permanentcommunication channel available, which can be accessedby the site, by phone and by email.

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PERFORMANCE
Ref.

Description

Direct response or indication on pagePERFORMANCE
Ref.

ECONOMIC PERFORMANCE
EC3
EC5
EC6
EC8

Coverage of pension plan obligations defined that theorganization offers
Variation in proportion of lowest wage compared to
local minimum wage in significant operational units.
Proportion of upper management hired from the local
community in significant operating units
Significant indirect economic impacts, including theextent of impacts

People who make Embraco
Answered in text

EN29

Energy consumption inside the organization

EN4

Energy consumption outside the organization

EN5
EN6

Energy intensity
Reduction of energy consumption
Reductions in energy requirements related to products
and services
Total water withdrawal by source
Percentage and total volume of water recycled andreusedIndirect emissions of greenhouse gases (GHG) fromthe acquisition of energy (Scope 2)
Total water discharge, broken down by quality anddestination
Total weight of waste, broken down by type anddisposal method
Weight of waste transported, imported, exported
or treated deemed hazardous under the Basel
Convention, Annexes I, II, III and VIII, and percentage
of waste transported internationally
Percentage of products and their packaging recovered
in relation to the total products sold, by productcategory

EN7
EN8
EN10
EN16
EN22
EN23

EN25

EN28

SUSTAINABILITY REPORT 2014 |In 2014 we didn’t receive fines for noncompliance withenvironmental laws and regulations.

EN32

EN34

Number of complaints and grievances related toenvironmental impacts filed, processed and resolved
through a formal mechanism

In 2014 we didn’t receive complaints and/or claims
related to environmental impacts.

SOCIAL: LABOR PRACTICES AND DECENT WORK

Doing more with less energy /Direct and indirect global energy consumption
Doing more with less energy /Direct and indirect global energy consumption
Doing more with less energy
Doing more with less energy

LA1

Energy efficiency

LA6

Doing more with less water / Water consumption

Direct response or indication on page

Environmental criteria are contained in our code of
conduct. 100% of our suppliers are adhering to the
document.

ENVIRONMENTAL
EN3

Description
Monetary value of significant fines and total numberof non-monetary sanctions for noncompliance withenvironmental laws and regulations
Percentage of new suppliers selected based on
environmental criteria

Answered in text
Private Social Investment

how we produce our products

LA5

Total and rates of new hires of employees andturnover by age group, gender and region
Percentage of workforce represented in formal healthand safety committees, consisting of employees fromdifferent hierarchical levels, which help monitor andorientate health and safety programs at work
Rates of injury, occupational illnesses, days away,absenteeism and work-related fatalities by region andgenderPeople that make Embraco
Brazil units have 92 CIPA members, 40 in the compressor
unit, 14 in the foundry, 22 in the component plant and 16
in the electronics plant. More information on page 50.
Indicators

Water reuse
Doing more with less emissions / Emissions
Water discharge / Water discharge
Doing more with less waste /Non-hazardous and hazardous waste
Doing more with less waste /Non-hazardous and hazardous waste

Nat.Genius

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PERFORMANCE
Ref.

Description

Direct response or indication on page
Brazil:Every employee, after a 60 day INSS leave period, has job
stability according to the company’s union agreement.
Beijing:
The company must ensure working conditions and healthand safety facilities in accordance with Chinese standards
and provide personal protective equipment (PPE) for
employees.

LA8

Themes related to health and safety covered byformal agreements with unions

Slovakia:
Agreement issues are: legal requirements for safety, suchas the evaluation of PPE and uniforms depending on risk;
periodic medical examination according to the workplace;
periodic protection training against fire safety; andperiodic meeting with representative safety members (43employees).
Mexico:The company must ensure and provide equipment for
personal protection as well as all conditions for Healthand Safety mentioned in the federal labor legislation
United States:
There is a process to ensure that all employees comply
with federal regulations regarding health and safety.
Embraco provides all PPE and health insurance.

LA9
LA10

LA11

Average hours of training per year per employee,
broken down by gender and job category
Competence and continuous learning management
programs that support the continued employability of
employees in preparation for retirement
Percentage of employees receiving regularperformance and career development analysis, broken
down by gender and job category

SUSTAINABILITY REPORT 2014 |Corporate education
We offer different training options for our employees,
however, none of them is focused on preparing for
retirement.

how we produce our products

PERFORMANCE
Ref.
LA12

Description
Composition of groups responsible for corporate
governance and breakdown of employees by category,according to gender, age group, minorities and otherdiversity indicators

LA14

Percentage of new suppliers selected based on criteria
relating to labor practices

LA15

Real significant negative and potential impacts forlabor practices in the supply chain and measurestaken in this regard

Direct response or indication on page
Diversity
Criteria relating to labor practices are contained in ourcode of conduct. 100% of our suppliers are adhering to
the document.
We have no evidence of negative impacts regarding labor
practices in our supply chain. However, we are mapping
all suppliers that may receive some sort of material froma conflict zone.

SOCIAL: HUMAN RIGHTS
HR1

HR3

HR5

HR6

HR10
HR11

Percentage and total number of significant
investment contracts that include clauses on humanrights or that have undergone screening on humanrightsSuppliers

Total number of incidents of discrimination andactions taken

In 2014 there were six formal cases in our plant in
Mexico. They were reported through our reporting
channel and were properly analyzed by the Ethics
Committee.

Operations identified as having significant risk forincidents of child labor, and measures taken tocontribute to eliminating child labor
Operations identified as having significant risk forincidents of forced or slave-like labor and measurestaken to contribute to the elimination of forced orslave-like labor
Percentage of new suppliers selected based on criteria
relating to human rights
Real significant negative and potential impacts onhuman rights in the supply chain and measures takenin this regard

We have no evidence of operations with significant risk ofchild labor occurrence.
In 2014 there were no occurrences like this, however weare mapping together with our appliance unit the entire
supply chain to ensure eradication of this form of slavelike and slave labor.
Suppliers
There were no evidenced real or potential cases withregard to human rights in the supply chain during theperiod covered by the report.

Professional development

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PERFORMANCE
Ref.

Description

Direct response or indication on page

SOCIAL: SOCIETY
SO1

SO3

Percentage of operations with implemented local
community engagement, impact assessments, anddevelopment programs
Total number and percentage of operations assessed
for risks related to corruption and the significant risks
identified

SO4

Communication and training on anti-corruption
policies and procedures

SO5

Confirmed incidents of corruption and actions taken

SO6
SO7

SO8

SO11

Total value of political contributions by country andrecipient/beneficiary
Total number of legal actions for anti-competitive
behavior, anti-trust, and monopoly practices and theiroutcomes
Monetary value of significant fines and total numberof non-monetary sanctions for non-compliance withlaws and regulations
Number of grievances about impacts on society filed,addressed, and resolved through formal grievancemechanisms

Social investment

Combating corruption
All newly hired employees receive training on global
compliance policies that include issues related to combat
corruption.
In 2014, there were no reported cases of corruption in ourunits.
We did not contribute financially to political parties in2014.

how we produce our products

PERFORMANCE
Ref.
PR5
PR7

PR8
PR9

Description
Results of customer satisfaction survey
Total number of incidents of non-compliance withregulations and voluntary codes concerning marketing
communications, including advertising, promotion andsponsorship by type of outcomes
Total number of substantiated complaints regarding
breaches of customer privacy and customer data loss
Monetary value of fines (significant) for noncompliance with laws and regulations concerning the
supply and use of products and services

Direct response or indication on page
Customers
In 2014 there were no cases of non-compliancewith regulations and voluntary codes concerning
communication.
In 2014 there were no cases of non-compliance regarding
the violation of privacy and customer data loss.
In 2014 we did not receive fines for non-compliance withlaws and regulations concerning the supply and use of
products and services.

In 2014 we did not receive lawsuits of this nature.
For strategic and legal reasons Embraco does not report
this indicator.
In 2014 no complaints and claims of this nature wererecorded.

SOCIAL: PRODUCT RESPONSIBILITY
PR1

PR3

Percentage of categories of significant products andservices where impacts on health and security areassessed, seeking improvements
Type of information on products and services requiredby labeling procedures, and the percentage of
products and services subject to such requirements

SUSTAINABILITY REPORT 2014 |Product safety

Product labeling66

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CREDITSSUSTAINABILITY REPORT 2014 |67

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CREDITSGRI G4-31

General coordination
Embraco – Corporate Communication and Sustainability

Writing, GRI Consulting, Layout, Review and Production
RICCA RI

PhotosEMBRACO ARCHIVE

Embraco Corporate Communications and Sustainability
Rua Rui Barbosa, 1.020, caixa postal 91
CEP: 89219-901
Joinville – Santa Catarina, Brazil.
If there are doubts, suggestions or comments about
the content of the report, contact us by email
comunicacao@embraco.com.

SUSTAINABILITY REPORT 2014 |68