activity report 2019 · dos temas relevantes voltados à sustentabilidade para o fortalecimento da...

FUNDAÇÃO ESPAÇO ECOACTIVITY REPORT 2O19

2019

Sustentabilidade que se mede

ACTIVITYREPORT

Sponsor:


2

INSTITUTIONAL- Industries from the construction ecosystem- Materiality guiding performance in the Retailer context - Lojas Americanas- Support for Strategic Management of the Paints Sector - Abrafati- Consultancy: Personal Care - BASF - Support for certification - ArcelorMittal Brasil and Usina Alta Mogiana- Public Interest Projects: (Sustentalks, SustenBOT and HotSpot Analysis)

- Plastics: eco-efficiency

analysis

- Demarchi+Ecoeficiente - BASF

- Eco-efficient packaging - Cargill

- Knowledge and development for society – Fundação Toyota do Brasil - Emission reductions:

RenovaBio and RenovaCalc -

Embrapa

SUMMARY

05- Who we are- Our governance- Our structure- Our materiality

SUPPORTING SUSTAINABILITY STRATEGIES AND GOVERNANCE

MEASURING IMPACTS AND PRODUCT PERFORMANCE

HOW WE CREATE A POSITIVE IMPACT AROUND THE WORLD

2131

MANAGEMENT OFNATURAL CAPITAL

2914FINANCIAL

STATEMENTS

33- The power from the forest- Brand positioning based on biodiversity

SUMMARY


We ended 2019 at Fundação Espaço ECO (FEE) certain that we have overcome several challenges and that we are ready to initiate a new cycle of achievements in the

challenging scenario of 2020. We maintained our essence, made advances in our governance and proceeded with a new structure at FEE as of August. We combined our teams and began operating according to the scrum approach, inspired by the agile project management methodology. With the support of new digital tools, our team was able to tackle projects with a flexible and multidisciplinary approach, pillared on collaboration and constant feedback. We introduced this practice into 30 projects brought to a close this year – a record number in Fundação’s 14-year history! Thanks to the team expertise and delivery capacity, we were able to measure the eco-efficiency of products and production processes, dealing with issues related to preservation and appreciation of biodiversity, supporting companies within different industries to earn environmental certification. We also built capacity among clients to perform more sustainably and communicate accordingly with stakeholders.

MESSAGE FROM MANAGEMENT

WE INCORPORATE SUSTAINABILITY INTO COMPANY BUSINESS STRATEGIES


Through the projects executed, we have yet contributed to companies translating science into a practical business language, coupling our technical expertise with the needs of our clients. This is how we materialize sustainability in the daily routines of organizations. We have bolstered our privileged position in global discussions on sustainability and Life-Cycle Assessment, presenting our studies at some of the leading specialized forums in Brazil and around the world, mentioned further in this report. We have yet contributed to society through public interest studies, to be presented as follows, through which we have sought to anticipate demands and trends relative to sustainability and to identify opportunities to introduce more sustainable activity models. Based on our initiatives and the positive results attained by our clients, partners and society, we believe we are fulfilling the mission of Fundação Espaço ECO, namely, to promote sustainable development. And so, we continue this journey, acting as an agent of societal transformation and blazing a trail towards a more sustainable tomorrow. Let’s do it together!

MESSAGE FROM MANAGEMENT

RAFAEL SELVAGGIO VIÑAS

Manager of Fundação Espaço ECO

RODOLFO VIANA

CEO of Fundação Espaço ECO

3

FUNDAÇÃO ESPAÇO ECOACTIVITY REPORT 2O19FUNDAÇÃO ESPAÇO ECOACTIVITY REPORT 2O19

INSTITUTIONAL

We work towards a more sustainable and economically viable future with the aim of promoting change among people to create a positive impact around the world!

4


W e are Fundação Espaço ECO, a Civil Society Organization of Public Interest (OSCIP), created and maintained by BASF. Far more than a qualification granted by the Ministry of Justice,

the title represents a commitment to our social role and issues related to the general public, along with our pledge to uphold existing legislation and transparency – administrative and financial. As a non-profit organization, any revenue resulting from private interest projects is reinvested into new studies, research and actions shared with society. We contribute through the deployment of company sustainability strategies, in Brazil and the rest of South America, pillared on three areas of expertise in Applied Sustainability: Supporting the definition and implementation of sustainability strategy and governance - facilitates dialog among several players with varying views from the value chain, whether considering their manufacturing process, consumers and/or communities throughout a product’s life cycle.These endeavors also permit certification processes and sustainability protocols. Measuring the impacts of products and processes - apply the Life-Cycle Assessment (LCA) approach in dealing with environmental, economic and/or social impacts generated by our clients or partners assets, services, programs or operations by, throughout their production chain, including use and final disposal.

“TO PROMOTE SUSTAINABLE DEVELOPMENT WITHIN BUSINESS ENVIRONMENTS AND SOCIETY, TRANSFERRING EXPERTISE AND TECHNOLOGY, ESPECIALLY THROUGH THE APPLICATION OF SOLUTIONS IN ECO-EFFICIENCY FOCUSED ON SOCIAL, ENVIRONMENTAL AND ECONOMIC BALANCE.”

Optimizing the management of natural capital - allows for investments in environmental conservation and forest restoration projects, thereby leveraging the value of eco-systemic services, while also adapting rural properties to comply with environmental legislation. In practice, we provide the expertise and tools that, when applied to studies of the contexts of each organization, contribute to responding to clients’ sustainability issues. We optimize the use of resources, reduce costs, differentiate products and add value to brands through diagnoses, measuring and solutions that help reinforce an organization’s competitive edge. Also, by contributing to Applied Sustainability, we introduce the topic into the business environment and public debate, acting as an agent of transformation for society within several spheres. Furthermore, we remain firmly on track towards our mission:

INSTITUTIONAL

WHO WE ARE


5

https://www.espacoeco.org.br/

basf.com/br


Our strategies and the focus of our projects are linked to the UN’s SDGs. As such, we believe in building a more sustainable world.

The United Nations has defined its Sustainable Development Goals (SDGs) as part of the sustainable development agenda – split into social, environmental and economic spheres. It is comprised of 17 objectives and 169 goals to be reached by 2030.

INSTITUTIONAL 6


We provide consultancy on sustainability strategies, recognizing values within businesses that go beyond economics, by means of our projects:

INSTITUTIONAL

DISCIPLINA CASE

Supporting the definition and implementation of sustainability strategy and governance

Industries from the construction ecosystem

Materiality guiding performance in the Retailer context - Lojas Americanas / B2W

Support for the strategic management of the paint sector - Abrafati

Consultancy: Personal Care - BASF

Support for certification - ArcelorMittal Brasil and Usina Alta Mogiana

Public interest projects (Sustentalks, SustenBOT e HotSpot Analysis)

Measuring the impacts of products and processes Plastics: eco-efficiency analysis

Demarchi+Ecoeficiente - BASF

Eco-efficient packaging - Cargill

Knowledge and development for society - Fundação Toyota do Brasil

Reduction of emissions: RenovaBio and RenovaCalc - Embrapa

Optimizing the management of natural capital The power from the forest - BASF

New position based on biodiversity - Bem Brasil Alimentos

7


NATURAL

CAPIT

AL

1

2

3

45

6

DIAGNOSIS

CONNECTION

MEASUREMENT

GOVERNANCE

INNOVATION

MANAGEMENT

Stage led by FEE Stage led by the client

GOVERNANCEMEASUREMENT

OUR SUSTAINABLEJOURNEY We believe in the potential of co-creation.Together with companies, research institutions and governments, we solve the challenges of a constantly evolving society. Together, we incorporate sustainability into company business strategies. We are agents of transformation for society and we promote sustainable development. We generate positive impact.

INSTITUTIONAL 8


Our governance is structured to prioritize transparency, safety, competence and agility necessary for decision making.

9INSTITUTIONAL

BOARD OF TRUSTEESThe highest decision-making body for Fundação Espaço ECO, which ensures compliance with its articles of incorporation, approving the annual Work Plan, discuss and ratify accounts and financial standing, while guaranteeing the operationalization of activities and nominating other executive bodies.

Members:Antonio Carlos Manssour LacerdaAndré Oliveira Cristiana Xavier de BritoDirk VösteEduardo de Lima Leduc1

ADVISORY BOARDA specialized advisory body for the Board of Trustees and Executive Management, especially with regards to technical issues inherent to Fundação Espaço ECO operations.

FISCAL BOARDThe administrative inspection body for Fundação Espaço ECO, which examines accounting and other such documentation, while also providing an opinion on financial statements and accounting records.

Members:Carolina AndradeEduardo AzevedoMaximiliano Demarchi

OUR GOVERNANCEIT IS COMPOSED BY THE FOLLOWING BOARDS*

* The members of the boards and the board of directors presented on pages 09 and 10 refer to the composition as of December 2019, with changes being made as of January 2020. BASF’s president for South America, Manfredo Rübens, became the chairman of the Curator Board.

1 Eduardo Leduc and Fabiano Santanna will no longer part of the FEE board and board of directors, respectively, in 2020.

We were also involved in over 30 projects in 2019, in partnership with clients like BASF, Fundação Toyota do Brasil, Lojas Americanas, Bem Brasil Alimentos, ArcelorMittal Brasil, Usina Alta Mogiana, Cargill, Abrafati, among others. This set a record in Fundação Espaço ECO’s 14-year trajectory, reflecting its team’s commitment to greater efficiency in processes through digitalization and by adopting agile project management methods.

INSTITUTIONAL

The Board of Directors, also part of our governance, is led by CEO Rodolfo Viana. An important structural change was implemented in 2019, consolidating our efforts: now, working in direct synergy with the BASF Sustainability Committee (BASF is the creator and sponsor of Fundação Espaço ECO).

Members: Adriana MunizDaniela FerreroniFabiano Santanna1

Juliana HoskenMariana ChohfiRafael ViñasRodolfo Viana

10FUNDAÇÃO ESPAÇO ECOACTIVITY REPORT 2O19


11INSTITUTIONAL

The year 2019 was also marked by the modernization of our control and project management tools, and work methods. We applied digitalization to become even more effective and

efficient. Additionally, our team was reorganized into several project teams, combining an array of expertise, experiences and perspectives to further bolster innovation and possibilities for clients. Teams became more cohesive, agile and focused, as we split projects among professionals according to their specialties and competencies. We restructure teams so that project management is tied more closely to more agile methodologies. This way, we also gain in terms of flexibility in building project teams (as everyone could participate in any of the disciplines), as well as improvements in the learning curve, geared towards more encompassing; and we maintain knowledge management at Fundação Espaço ECO. We offer expertise to co-create solutions, aimed at supporting our clients in making strategic decisions and raising awareness among citizens with regards to their choices. We are also strengthening our contribution to discussions among thematic groups together with our partners, covering issues that impact society and/or motivate collective dialog and questions. The result of all this evolution is an increase in our operations in South America, mainly with studies performed in Argentina, Colombia and Chile.

OUR STRUCTURE


OUR STRUCTURE

*The FEE organization chart refer to the composition as of December 2019.1 The collaborators Daniely Andrade and Marília Verdugo were part the staff of FEE employees until 2019.

INSTITUTIONAL 12

BOARD OFTRUSTEES

Fiscal Board Advisory Board

Rodolfo W. Viana General Manager

Rafael ViñasManager

Taísa CairesCoordinator Information Analyst

Max SilvaCoordinator

Marilia Verdugo1

Analista de Informações

Matheus Fernandes Analyst of Applied Sustainability

Analyst of Applied SustainabilityFelipe Avilán Michelle Scachetti

Senior Analyst of Applied Sustainability

Daniely Andrade1

Analyst of Applied Sustainability

Rebeca VenâncioJunior Analyst of Applied Sustainability

Tiago BarretoApplied Sustainability Consultant

Adriana MoraesAnalyst of Applied Sustainability

Board of Directors


13INSTITUTIONAL

The strategically relevant topics to the operations of Fundação Espaço ECO were defined in a renewed materiality matrix in 2019, based on individual interviews and online surveys conducted with some 300 professionals made up of clients and partners, including BASF.

OUR MATERIALITY

Thus, materiality is directly linked to the perception of how the strategy plays out and FEE’s operations. In other words, we provide business consultancy in dealing with the most pressing issues among Fundação stakeholders.

1. Has a strong institutional reputation

2. Measure the impacts of projects clearly and objectively

3. Promotes constant innovation and improvements

4. Focused on economic balance and cost controls

5. Contributes to public debate

6. Contributes to a reduction of negative environmental impacts

Creates stronger thematic connections with projects serviced as support business

8. Generates and disseminate knowledge

9. Values its employees

10. Supports companies in earning certifications

11. Promotes advocacy

12. Has a strong corporate governance

13. Monitors the satisfaction of clients/partners

PER

SPEC

TIV

A D

OS

PÚ

BLI

CO

S

PERSPECTIVA DA LIDERANÇA

0,0

0,5

1,0

1,5

2,0

2,5

3,0

0,0 1,0 2,0 3,0

LEADERSHIP PERSPECTIVE

AU

DIE

NC

E P

ERSP

ECTI

VE


SUPPORTINGSUSTAINABILITY STRATEGIES AND GOVERNANCE



We spoke with associations, public servants and community leaders of residents to learn about their main problems and, thereby, identify materiality (waste, improvement of public

spaces, water and sanitation, safety). This survey, organized by Fundação Espaço ECO, offered criteria for prioritizing and guidance on resources used by Impact Hub – a Brazilian organization connected to a global network of entrepreneurs, responsible for the acceleration program. The organization selected 18 startups and companies with social solutions related to the quality of housing. After projects with the highest potential for impact were selected and received financial support from participating companies, those chosen underwent acceleration in 2019, with mentoring provided by Impact Hub. The first delivery of the initiatives in Jardim Ibirapuera is expected to take place in july 2020.

We performed the diagnosis as a Perception Analysis (Hotspot Analysis method). We created a channel to hear and understand the demands of the community of Jardim Ibirapuera (São Paulo, SP).

INDUSTRIES FROMTHE CONSTRUCTION ECOSYSTEM

15

Based on a diagnosis by Fundação Espaço ECO, with surveys and interviews conducted with the community in São Paulo (SP), investments from the alliance of companies were directed towards this population’s most pressing challenges. Business with a positive impact gained support and leverage thanks to the adaptability of their solutions for this and other peripheral regions.

PRIORITIZING

PRIORITIZING(INSTITUTIONS)

PRIORITIZING(LEADERS/RESIDENTS)

Services

Equipment

Public Areas

Construction & Maintenance

IRRELEVANT

INTERESTING

NECESSARY

ESSENTIAL

PublicAreas

Services

Equipment

Construction & Maintenance

IRRELEVANT

INTERESTING

NECESSARY

ESSENTIAL

The HousingPact is a social impact initiative led by Impact Hub, that brings together 10 companies from the construction industry, including BASF, we support and develop an ecosystem that contributes to improved housing quality for the low-income population, living in situations of social and economic vulnerability.

SUPPORTING SUSTAINABILITY STRATEGIES AND GOVERNANCE


MATERIALITY GUIDING PERFORMANCE IN THE RETAILER CONTEXTLOJAS AMERICANAS / B2W

We have updated the strategic materiality matrix for physical stores (LASA) and the online platforms (B2W) for Lojas Americans, identifying impacts, risks and opportunities related

to sustainability. The matrices guide practices and actions to be implemented in the short, medium and long terms, generating value for the company and its partners. In the first stage, interviews were held with upper management from different company departments to identify and describe topics. Next, stakeholder perception was assessed (including associates, customers, suppliers, specialists, associations, civil society, communities and investors), using online questionnaires. In all, we heard from over 4,000 people, between internal and external publics. In our work system, we organized the company’s sustainable journey with a graphic representation, comprised of six steps. Once materiality was identified, we contributed to the advancement of steps 1 and 2, mapping subjects relevant to the company, coupled with an analysis of its position.

10

02 SOBRE O

relatório

Privacidade das informações dos clientes

Saúde e segurança no trabalho

Governança corporativa

Cadeia responsável

Saúde e segurança do cliente

Inovação e automação

Desempenho econômico-financeiro

Presença no mercado

Relacionamento e experiência dos clientes

Treinamento e desenvolvimento dos associados

Geração de empregos

Salário e benefícios dos associados

Transparência e comunicação da gestão

Diversidade e inclusão no ambiente de trabalho

Preços acessíveis

RELEVÂNCIA INTERNA 54

5

REL

EVÂ

NC

IA E

XTER

NA

MATRIZ - TÓPICOS MATERIAIS

Os resultados encontrados permitiram compreensão dos temas relevantes voltados à sustentabilidade para o fortalecimento da atuação da Companhia. Os indicadores levantados e os capítulos a seguir ilustram como a Lojas Americanas orienta suas estratégias. Para mais esclarecimentos e sugestões sobre as demandas relacionadas à temas de sustentabilidade, meio ambiente, projetos sociais, segurança do trabalho e outros, a Companhia se coloca à disposição nos canais da Companhia Verde, por meio do e-mail [email protected], e também do Departamento de Relações com Investidores, no e-mail [email protected].

10

02 SOBRE O

relatório




Cadeia responsável











Preços acessíveis


5

REL

EVÂ

NC

IA E

XTER

NA



10

02 SOBRE O

relatório




Cadeia responsável











Preços acessíveis


5

REL

EVÂ

NC

IA E

XTER

NA



SUPPORTING SUSTAINABILITY STRATEGIES AND GOVERNANCE16

Client relationship and experience

Confidentiality of client information

Client health and safety

Training and development of associates

Generation of jobs

Associate salaries and benefits

Management transparency and communication

Workplace health and safety

Innovation and automation

Diversity and inclusion in the workplace

Corporate governance

Economic and financial performance

Accessible prices

Responsible chain

Market presence

INTERNAL RELEVANCE

EXTE

RN

AL

REL

EVA

NC

E


SUPPORT FOR THE STRATEGIC MANAGEMENT OF THE PAINT SECTOR ABRAFATI

In 2019, we supported the Brazilian Association of Paint Manufacturers (Abrafati) to identify material themes, to act on in the next years. In the first stage, we performed a Perception (using the Hotspot

Analysis method) and Materiality Analysis, by listening to the opinions of 180 people. The second stage included the holding of a workshop with representatives of the associated companies and the Paints and Varnishes Industry Union of the State of São Paulo (Sitivesp), to revisit the material themes, trends and benchmarks of the paint sector presented in the first stage. From this meeting, five themes were prioritized and strategic objectives were defined for each prioritized theme, as well as drawing up a first draft of the actions that the association’s committees will conduct.

SUPPORTING SUSTAINABILITY STRATEGIES AND GOVERNANCE 17


Throughout 2019, we took part at workshops organized by Brazilian Association of Personal Hygiene, Perfume and Cosmetic Industries (ABIHPEC), presenting our consultancy project for BASF’s Personal

Care segment, among others. SUSTAINABILITY-BASED BUSINESS PRACTICES ARE NOW A REALITY AT BASF

The company believes in the positive financial impact of applying innovation in alliance with the environment and society. Understanding and catering to the current and future concerns of society is a comprehensive part of this practice. Natural and organic products, free of animal-based ingredients and testing are among some consumption trends. And it’s certainly not any different in the cosmetics industry. We conducted a study that allowed BASF to steer its business strategy, based on an understanding of the appeal of sustainability within the cosmetics segment, confirmed through the leading certifications and latest trends.

In practice, we mapped the most important brazilian certifications linked to natural, organic and vegan cosmetics and identified the ingredients and raw materials that best cater to the requirements for said certificates.Based on the information found, we developed a matrix for BASF todevelop its business within the Personal Care segment.

PRODUCTS WITH NATURAL, ORGANIC OR VEGAN CONCEPTS ARE A TREND IN THE PERSONAL HEALTH SECTOR

CONSULTANCY:PERSONAL CAREBASF



With the support of a Life Cycle Study, conducted by FEE, ArcelorMittal Brasil managed an unprecedented move in the steel sector with the implementation of Environmental Product

Declarations (EPDs) for hot rolled, galvanized and galvalume coils. These products are widely used in civil construction and are developed in the company’s drawing mills. This achievement for specific products (listed above) is coupled with the EPD for rebars, screens/trusses and annealed wire/nails. The declaration is issued by a German institute called IBU (Institut Bauen und Umwelt) and provides public information about the environmental performance on the life cycle and the potential impact of each product. This equips the company with a series of competitive edges and aligns sustainability with the possibility of increasing their business in other international markets. With this further achievement, customers can now monitor the impact of products by ArcelorMittal Brasil, considering all phases until the end of the service life, while also bolstering the technical and consultative sale of products.

ARCELORMITTAL BRASILSUPPORT IN EARNING CERTIFICATIONS

We supported Usina Alta Mogiana during its efforts to attain Decarbonization Credits (CBios), an environmental asset traded on the stock exchange.

Fuel distributors are obliged to meet goals national goals through investments in CBios. These are derived from biofuel production process certification, based on respective levels of efficiency attained in relation to Greenhouse Gas Emissions within their life cycle.

USINA ALTA MOGIANA

RenovaBio represents a development strategy for the production of biofuels, as from the moment yearly national goals are established for decarbonization within the fuel industry.This provides incentive to increase the production and participation of biofuels in the nation’s transport energy matrix.

SUPPORTING SUSTAINABILITY STRATEGIES AND GOVERNANCE 19


WE ORGANIZE SEVERAL PUBLIC INTEREST PROJECTS, FOR THE PROPAGATION OF KNOWLEDGE.

SustenBOT

Sustentalks

Hot

spot

Ana

lysi

s

Meetings with interested parties to debate issues linked to sustainability. This dialog workshops, co-create with the BASF Corporate Sustainability team, brings together companies involved in the plastic production chain with the aim of anticipating market demands and identifying opportunities for new consumption models. It is comprised of people, companies and institutions interested in building new business models and after a more responsible and sustainable relationship with the value chain. In 2019, around 200 participants, representing 75 institutions, attended the meetings that were geared chiefly towards the automobile, consumer goods and civil construction industries.

Launched in late 2019, this online tool (at no cost to users) identifies a company’s level of sustainability in just 3 minutes. SustenBOT, available through Fundação Espaço ECO’s website, is composed of 10 questions covering subjects like Sustainability Governance, strategy interpretation in terms of Sustainable Development Goals - SDGs, as well as the use of water and electricity, emission and social inclusion indicators. Based on the user’s response, a report is issued showing the company’s level of sustainability maturity. The goal is to provide rapid access to early data on sustainability, thereby promoting more understanding about the subject and encouraging the development of initiatives and projects within the corporate world.

A multidisciplinary group met over a period of six months, in 2019, to map the evolution of processes adopted in the Hotspot Analysis developed over a 6-year period (2014-2019), while also systematizing a methodology.The result was published in an e-book, aimed at serving as far more than a mere record of knowledge produced, serving instead as a practical guide for new studies of this nature and as basic information for public knowledge.

KNOW MORE

A Hotspot Analysis seeks to observe and assess the perception of stakeholders concerning an environment and/or action in which the company is inserted, providing a view of the links of the chain in relation to issues like sustainability within business.


https://www.espacoeco.org.br/sustenbot/

MEASURINGIMPACTS AND PRODUCTPERFORMANCE



DID YOU KNOW?Replacing the use of 4 disposable

cups for a glass cup equals:In 2019, plastic was one of the hottest topics in debates within society and Fundação Espaço ECO. We have taken the first step leading to a dialog on transitioning to new

business models among companies in Brazil. We have taken a lead in discussions, connecting people and organizations through a common issue: The Future of Plastics. We listened to around 90 specialists (representing entire value chains), and we conducted an analysis of the perception of the sector that produces and applies these materials. We sought to understand the most relevant subjects in the plastics chain, their impacts and the possible or implemented solutions.

35%IN CARBON

DIOXIDEEMISSIONS

3,500TONS OF CO2 PER YEAR IN A CITY OF 780,000 PEOPLE

FUTURE OFPLASTICS

MEASURING IMPACTS AND PRODUCT PERFORMANCE22

A REDUCTION OF A REDUCTION OF


We assisted BASF with its Eco-Efficiency Analysis to understand the environmental impacts and economic costs in replacing plastic cups in

company units kitchens and cafeterias. Polypropylene and polycarbonate were the best materials found, presenting the lowest environmental impact. The study included the preparation of informative graphs, which provide a simple and practical presentation, contributing to a campaign to raise awareness among employees and society with regards to this cause.

REPLACEMENT OF PLASTIC CUPSBASF

BASF was elected the most sustainable company of the year in Brazil by the Sustainability Guide of Brazilian leading business magazine Exame. Circular Economy projects supported by FEE, along with emission reductions, a sustainable portfolio and agribusiness education were also decisive in attaining this recognition.

THE MOST SUSTAINABLE COMPANY OF THE YEAR IN BRAZIL



Another example of a project in partnership with BASF is Demarchi+Ecoeficiente. In 2010, in a pioneering move, we initiated an Eco-Efficiency Analysis to measure and optimize production processes

at the Paint and Varnish Industrial Complex in São Bernardo do Campo (São Paulo State), which has an annual production capacity of 330 million liters of paint, enamel, varnish and resins per year. Economic and environmental improvements were possible thanks due to the support of the unit team. In 2019, we advanced with the formation of a committee of ambassadors, composed of 30 multiplying employees. Through of them, we take the concept of sustainability to other employees and brought ideas to improve processes, reinforcing the position of sustainability in Suvinil’s business strategy and production automotive paints. Together, we contributed to environmental education, supporting managers in engaging plant employees through talks and workshops, informative material on developing channels for open dialog and interactive surveys to leverage discussions around the topic.

DEMARCHI+ECOEFICIENTE BASF

2012 TO JULY 2019

ENVIRONMENTAL IMPACTATMOSPHERIC EMISSION REDUCTION OF 1,100 TON OF CO2-eq

ECONOMIC IMPACT12 % REDUCTION IN INTERNAL ELECTRICITY CONSUMPTION. THE COST, HOWEVER, WAS HIGHER DUE TO THE SIGNIFICANTLY HIGHER PRICE OF THIS ITEM. OVER BRL 8 MILLION IN ROI WITH THE SUSTAINABILITY PROJECT, CALCULATED BY THE FGV


https://www.youtube.com/watch?v=ayugn-0YGSQ


Additionally, we monetized the benefits of the project over the years, resulting in savings of BRL 8 million thanks to optimization efforts in applying resources like water and electricity.

By measuring the environmental and economic impacts generated directly through industrial plant activities and the raw materials chain, while involving employees in identifying room for improvements, BASF has the opportunity to bolster eco-efficiency and, as such, the results of its business. The Demarchi+Ecoeficiente program was promoted twice by the UN Environmental Program (UNEP) as one of the pioneering cases in Organizational Life-Cycle Assessment in Brazil, highlighted as one of the 12 best global practices, contributing to BASF’s recognition in the sustainability category.

30EMPLOYEES ACTING

AS MULTIPLIERS



Since 2018, Cargill has annually analyzed the sustainability of the production of its entire line of tomato products. Based on this analysis, the possibility of replacing one of the main

packaging used for the Elefante tomato extract, the cans made of steel, was evaluated. Through an Eco-Efficiency Analysis, it was possible to compare the traditional packaging and an option made with plastic.

Considering the criteria of environmental and economic performance, it was concluded that the new packaging performed 6% better in environmental terms and 12% better in economic terms.

CARGILLECO-EFFICIENT PACKAGING



Toyota do Brasil Foundation wanted to measure the impact of its Ambientação project, which exceeded the company’s boundaries. As such, formed a partnership with us for a study with the aim of

disseminating knowledge, measuring impacts and contributing to the mission of promoting the sustainable development of society. In practice, FEE used data collected through Ambientação over the past 10 years and conducted an analysis according to the Life-Cycle Assessment (LCA) concept, enhancing the environmental and economic benefits of the project. The Ambientação Project, underway at Toyota since 2008, has disseminated an exclusive methodology (Toyota Business Practices - TBP), focused on the reduction, analysis and solution of problems - in this case, the consumption of natural resources and waste management. The Ambientação Project began with a partnership with the city administration of Indaiatuba, in São Paulo State. In 2013, it reached

Fundação Espaço Eco measuring impacts from life cycles in a city.

KNOWLEDGE AND DEVELOPMENT FORTHE COMMUNITYFUNDAÇAO TOYOTA DO BRASIL

Guaíba (Rio Grande do Sul) and then Sorocaba (São Paulo), cities home to some of the company units in Brazil. There are over 500,000 people involved in the project, including students, professors, public servants and representatives of NGOs, acting as multipliers within the community. When existing the gates of the manufacturing plant and spreading throughout society, the TBP, which has developed into a Distance Learning Method, has contributed to the dissemination of sustainable practices and to people being able to develop strategies and propose goals to reduce water and electricity consumption, while also suggesting solutions for waste management.

RESULTS REACHED BETWEEN 2010 AND 2018 IN THE METROPOLITAN REGIONS OF CAMPINAS AND SOROCABA

ENERGY SAVINGSOF 3.5 GJ3,4

716MILLION LITERS OF WATER SAVED FOLLOWING PROJECT INITIATIVES

TONS OF CO2-EQ EMISSION REDUCTIONS

311

3,6BRL MILLIONS

IN SAVINGS



EMISSION REDUCTION: RENOVABIO AND RENOVACALC

EMBRAPA

Fundação Espaco Eco, partnered with Brazilian leading agroresearch institute Embrapa and consultancy Agroicone, jointly developed initiatives and tools focused on building capacity and training on

RenovaCalc. It is a calculator used to assess greenhouse gas emissions at different stages of the biofuels’ life cycle and, at the end, calculate the amount of decarbonization certificates, called CBios, a biofuel producer is entitled to emmit. Fundação Espaço Eco entered into a partnership with the early developers of RenovaCalc (researchers of Embrapa, State University UNICAMP, consultants of Agroicone and Laboratorio Nacional de Biorenováveis). Together, we prepared training material and a complete course, bulding capacities for 250 multipliers of the program. In another joint effort, we brought together Brazilian leading specialists for a Webseries, called RenovaDrops, comprised of four programs about RenovaBio.

Together with Brazil’s ANP (National Agency for Petroleum, Natural Gas and Biofuels), we hosted three talks about the subject all over the country, through RenovaBio Itinerante, reaching an audience of 150 people. Through talks, we provide clarification at biofuel production hubs about the operationalization of RenovaBio and the RenovaCalc calculator, clarifying doubts and creating a channel to hear from our stakeholders.

CITIES INCLUDED IN 2019: Chapada dos Guimarães (MT), Cuiabá (MT) and Anápolis (GO).

RenovaBio Itinerante


https://www.youtube.com/watch?v=nGXeoTTYigE&t=5s


MANAGEMENT OF NATURAL CAPITAL

29


Projeto Mata Viva®, organized in partnership with BASF, reflects our direct contribution to the environment through natural capital management. Initiated in 1984 at the Guaratinguetá Chemical

Complex in São Paulo, it has already contributed with native species reforestation efforts covering 132 hectares, with some 278,000 trees planted along a 1.4 km stretch of the Paraíba do Sul River. Estimates are that this investment helped sequestrate 33,500 tons of carbon dioxide from the atmosphere. In 2019, we worked on compensating greenhouse gas emissions from BASF events and fleets, restoring around 4.5 hectares in the region of Vale do Paraíba, neutralizing over 805 tons of carbon dioxide. The Forestry Master Plan* developed for Floresta Mata Viva was presented at the 25th World Congress of the International Union of Forest Research Organizations (IUFRO), the world’s premier forestry research event, held in Curitiba (PR).

THE POWER FROM THE FOREST BASF

* The Master Plan is a “basic instrument on the development and urban expansion policy”. It assists in steering local projects, as it provides public administration with aset of strategic guidelines for making decisions. It is a basic document for the development of public policy and is governed by Federal Law.

278,000TREES PLANTED

We mapped the biodiversity of the Água Santa farm, from Bem Brasil Alimentos (producer pre-fried frozen potatoes and dehydrated potato flakes), located in Perdizes, Minas Gerais.

We got together in an photographic and video inventory. With this record, the company is able to adjust its position, with evidence to back a positive and constructive discourse, bolstering its best practices and providing increased visibility to the farm, from which it sources its main raw material, potatoes. We generated value for the brand through the biodiversity of this natural capital. The study allowed Bem Brasil Alimentos to take its first step towards organizing a visitation program, using material delivered to the company as basis for an education trail, also developed by Fundação Espaço ECO.

BRAND POSITIONING BASED ON BIODIVERSITY

MANAGEMENT OF NATURAL CAPITAL

BEM BRASILALIMENTOS

300HOURS

OF OBSERVATIONON THE 10,000-HECTARE FARM

REGISTRATION OF

SPECIES OF BIRDLIFE AND 150 SPECIES OF FLORA FROM THE CERRADO

230

30


HOW WE CREATE A POSITIVE IMPACT AROUND THE WORLDWe are signatory of the Global Compact. We have obtainedISO 9001:2008 and ISO 14001:2004, which ensures transparency, technical rigor and earnest governance. Each year, we render accounts, which are audit and approved by Ernst & Young.

We have earned the “Gente Que Faz” award, at an event promoted by CIESP (São Paulo State Center of Industries), in São Bernardo do Campo (SP), which is geared towards leveraging entities that provide professional capacity building in support of entrepreneurism, reducing inequality, fostering social inclusion and an appreciation for education. The Life-Cycle Assessment (LCA) and the Theory of Change, both applied by FEE, where highlighted at this moment of acknowledgment.

HOW WE CREATE A POSITIVE IMPACT AROUND THE WORLD31


Measuring: by introducing the subject into international congresses, we share expertise and disseminate the importance of developing classification and analysis criteria.

Management of natural capital: we share expertise on environmental conservation in publications part of important international congresses.

Governance: we assisted companies in outlining their strategies through a fun and easy-to-understand methodology.

In the form of games, we took part in was the “Cycle Game - your choices, our consequences”, overseen by the FGV’s Corporate Initiatives for the Sustainability Studies Center (FGVces) and prepared in conjunction with private companies. The board game was a result of one of three work groups during the Corporate Initiative Forum (iE). The main objective is to mobilize and inspire decisions regarding company portfolio management, based on integrating the Life Cycle concept into these processes.

To disseminate and multiply knowledge, we took part in scientific forums of international renown. One examples the 9th International Conference on Life-Cycle Management, in Poland, during Life Cycle Management (LCM) - one of the leading global forums on environmental, economic and social sustainability. During the event, we presented 11 cases of success, among them Demarchi+Ecoeficiente, which combines Life-Cycle Assessment (LCA) and engagement. This study was also highlighted at the VIII International Conference of Life Cycle Analysis in Latin America (CILCA 2019), held in Costa Rica, where we presented the “Sustainable Farm Award”, which assess the Life Cycle of some of the country’s most innovative and sustainable farms, winning the “Best Poster” category at the technical conference.

Furthermore, we participated at the XXV Congress of the International Union for Forest Research Organizations (IUFRO) in Curitiba (PR).

We transform information into knowledge and engagement so that, together, we can overcome present needs, without jeopardizing the needs of future generations. We respond to the questions and anxieties among our clients with applied sustainability.

Our daily activities have a direct relation to climate change. One example is Greenhouse Gas emissions, popularly known as carbon emissions, which directly impact climate change. To contribute to the planet, we calculate our carbon emissions and define a neutralization project, by planting 259 trees in the region of Vale do Paraíba (São Paulo, SP). No by avoiding carbon dioxide emissions into the atmosphere, we become “Zero Carbon”.


HOW WE CREATE A POSITIVE IMPACT AROUND THE WORLD 32

gvces.com.br


INDEPENDENT AUDIT REPORT ON FINANCIAL STATEMENTS

OpinionWe examined the accounting records for Fundação Espaço ECO (“Fundação”), which includethe balance sheet on December 31, 2019 and the respective statement of deficit/surplus, net asset changes and cash flows for the year ending on said date, as well as corresponding explanatory notes, including a summary of the main accounting policies.In our opinion, the aforementioned accounting records have correctly presented, in all relevant aspects, the equity and financial position of Fundação Espaço ECO on December 31, 2019, the performance of its operations and its respective cash flows for the year ending on said date, in accordance with the accounting practices adopted in Brazil for small and medium enterprises– Technical Note CPC PME – “Accounting for Small and Medium Enterprises”and for non-profit organizations – Technical Interpretation ITG 2002 – “Non-Profit Organization”.

Basis for opinionOur audit was conducted in accordance with Brazilian and international audit standards. According to such standards, our responsibilities are described in the section “Auditor’s responsibility for the financial statements’ audit” below. We are independent in relation to Fundação, according to relative ethical principals in the Professional Code of Ethics for Accountants and professional standards issued by the Federal Board of Accounting, and we have fulfilled all other ethical responsibilities in accordance with these standards.We believe that the audit evidence obtained is sufficient and suited to forming a basis for our opinion.

ERNST & YOUNGAuditores Independentes S.S.CRC-2SP034519/O-6

April 3, 2020

FINANCIAL STATEMENTS

6

33


2019 2018

ASSETS

CURRENT

Cash and Cash Equivalents 2,891,662 274,427

Deeds and Securities - 4,150,593

Receivables 421,421 387,521

Advances 39,347 2,983

Recoverable Taxes 186,919 109,927

Total Current Assets 3,539,349 4,925,451

NON-CURRENT ASSETS

Fixed Assets 3,505 3,894

3,505 3,894

Total Assets 3,542,854 4,929,345

2019 2018

LIABILITY AND EQUITY

CURRENT

Payables (Invoice 7) 582,655 215,842

Due Tax (Invoice 8) 127,516 73,348

Deferred Income 75,000

Total Current Liabilities 710,171 364,190

NET EQUITY

Equity 300,000 300,000

Accumulated Surplus (De�cit) 2,532,683 4,265,155

2,832,683 4,565,155

Total Assets and Liabilities 3,542,854 4,929,345

FUNDAÇÃO ESPAÇO ECOBALANCE SHEETS ON DECEMBER 31, 2019 (IN BRAZILIAN REAIS)

-

The accompanying notes are an integral part of these �nancial statements.

FINANCIAL STATEMENTS 34


CREDITS

Coordination and Publishing Comunicação CorporativaFabiana [email protected] | Tel. +55 11 2349 1936

Fundação Espaço ECORodolfo Walder VianaRafael Selvaggio Viñas Taísa Cecilia de Lima Caires

External Partners:Content, Coordination and Design ConsultancyGlobal Conteúdo Estratégicoglobalconteudo.com.br

Design GráficoFábio Francisco

Photographs Acervo da Fundação Espaço ECO

Translation Traduzca

CONTACTS

Fundação Espaco ECO+ 55 11 2349-3006Estrada Ribeirão do Soldado, 230Botujuru - 09822-010São Bernardo do Campo, SP – Brasil

[email protected]

/fundaçãoespaçoeco

/Fundação Espaço ECO

A C T I V I T Y R E P O R T 2 0 1 9

Sustentabilidade que se mede

Sponsor:

/fundaçãoespaçoeco

/Fundação Espaço ECO

activity report 2019 · dos temas relevantes voltados à sustentabilidade para o fortalecimento da...

Documents