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Since 1999, Embraer S.A. has shared its annual report, with a statement on operational, financial and socio-environmental performance, explained results in their context and presented advances in practices of corporate governance, ethics and compliance. G4-3, G4-7, G4-30
This edition complies with Global Reporting Initiative (GRI) G4 Guidelines, in accordance – Core option. The content was prepared through interviews with the Board of Executive Officers and based on the company’s Materiality Matrix (see Embraer Materiality Matrix). The data covers the financial year of January 1 through December 31, 2016, and encompasses all sites in Brazil and abroad, except where identified otherwise in explanatory notes. All Embraer sites included in the consolidated financial statements are within the scope of this report. Eventual reformulations of information disclosed in previous reports are clarified throughout the content. G4-17, G4-22, G4-23, G4-28, G4-32
In line with best market practices, references from the Dow Jones Sustainability Index (DJSI), from the BM&FBOVESPA’s Corporate Sustainability Index (ISE, in Portuguese) and from the Global Compact of the United Nations (UN), of which Embraer is a signatory, were also considered.
The financial data follows International Financial Reporting Standards (IFRS) and was submitted for external verification by KPMG Independent Auditors. The inventory of greenhouse gas (GHG) emissions was audited by Lloyd’s Register Quality Assurance (LRQA), whereas the other information was verified internally, without external verification of this publication. G4-33
To learn more, access http://ri.embraer.com.br/Default.aspx?linguagem=en# or contact the e-mail investor.relations@embraer.com.br. G4-31
Enjoy!
Building a sustainable future is one of Embraer’s values (see Vision and Values) and as such, it is part of the company’s strategy. In order to identify high-priority issues of sustainability, Embraer carries out a specific consultation process with a formal review every three years. Thus, the Materiality Matrix graphically expresses the combined vision of the company’s management and stakeholders regarding the relevance of a predefined set of sustainability issues. The current matrix is the result of consultations made in 2013. Throughout 2016, a new and amplified survey was conducted, generating the 2017-2019 materiality, which is presented in the GRI Indicators section.
The company’s performance in relation to the priority themes of the Materiality Matrix is evaluated by the Master Sustainability Plan, which presents indicators and triennial targets. With a review every three years and annual revaluation, the first cycle of the plan came into force in January 2015, with horizon of December 2017. G4-2
* The limit of the material aspect outside of Embraer can be found in the GRI Indicators. G4-21
| No. | Aspect | Indicator | Dec. 2017 Goal | 20151 | 2016 |
|---|---|---|---|---|---|
| 1 | Ethics | Percentage of adherence to compliance policy and procedure.2 | 100% | Managers: 100%* Non managers: 98.98%* *considering the trainings held on Anti-Corruption – Code of Ethics and Conduct | Managers: 96% Non managers: 98% *considering the trainings held on Anti-Corruption – Code of Ethics and Conduct |
| 2 | Attraction, development and retention of human resources | Favorability percentage in the climate survey. | 80% | 89% | There was no survey in 2016; the company opted for a bi-annual engagement survey. Engagement survey will take place in May 2017. |
| 2 | Attraction, development and retention of human resources | Number of staff training hours per year. | 500,000 hours per year | 557,077 hours | 625,416 hours |
| 3 | Product safety | Maintenance of type-approval certificates (CHT, in Portuguese) for commercial and executive aviation planes. | 100% of type certificates valid. | 100% | 100% |
| 3 | Product safety | Maintenance of company-approval certificates (CHE, in Portuguese) in all Embraer sites of interest as defined in conjunction with the business units. | 100% of all sites of interest certified. | 100% | 100% |
| 4 | Management of chemical substances | Development of the new chemical substance management system to ensure an adequate level of knowledge of the product’s chemical composition for compliance with current and future environmental legislation. | Phase I – definitions and structuring: until February 2015; Phase II – platform availability and data input: until December 2016; Phase III – full operation of the system: until December 2017. | Finalized: the first phase of the modification of the registration of hazardous substances in SAP. In progress: training of employees who register substances in the system. Start of data input into the system, aiming to comply with environmental legislation. As of December 2015, all registrations already incorporate the modifications made to the modified system. | Finished the structuring and definitions phases. Carried out training for all those involved in the registration of chemical substances in the SAP system. All inputs comply with current legislation. |
| 5 | Management of supply chain | Percentage of suppliers classified as "high environmental risk" in risk evaluations. | 0% | 0% | 0% |
| 6 | Export control | Percentage of adherence to export policy and procedure. | 100% adherence to the compliance evaluation survey. | 77% | 97% |
| 7 | Sustainable new business, products and services | Number of new business, products and services incorporating principles of Sustainability. | Annually launch project that demonstrates the inclusion of sustainability. | Non-chrome leather available from tannery for use in aircraft interiors. | Partnership with Boeing in the Eco demonstrator program. Technology tests aimed at reducing fuel consumption, CO2 emissions and noise. |
| 8 | Management of natural resources and waste | Consumption of energy (MWh) per equivalent plane. | Reduce by 3% consumption by equivalent plane, in relation to the base year 2014 (603.78 MWh/equivalent aircraft). | 551.96 MWh/aircraft equivalent (reduction of 9%) | 499.79 MWh/equivalent aircraft (reduction of 17%) |
| 8 | Management of natural resources and waste | Consumption of water (m3) per capita. | Reduce by 4% per capita consumption of water, in relation to the base year 2014 (44.66 m3/per capita). | 41.78 m3/per capita (reduction of 6%) | 42.49 m3/per capita (reduction of 5%) |
| 8 | Management of natural resources and waste | Generation of solid waste/net revenue. | Reduce by 3% the total generation of waste per million dollars of revenue, in relation to the base year 2013 (2.76 t/million dollars). | 3,21 t/million dollars (increase of 16%) | 2,95 t/million dollars (increase of 7%) |
| 8 | Management of natural resources and waste | Generation of dangerous solid waste/net revenue. | Reduce by 3% the total generation of dangerous waste per million dollars of revenue, in relation to the base year 2013 (0.5 t/million dollars). | 0.57 t/million dollars (increase of 14%) | 0.5 t/million dollars (maintenance) |
| 8 | Management of natural resources and waste | Percentage of manufacturing plants and Embraer service centers with ISO 14,001 certification. | 100% of manufacturing plants and service centers that existed in 2014 with ISO 14,001 certification. | 47.05% (FLM, EGM, ELEB, BOT, GPX, TTE and EVO)3 |
47.05% (FLM, EGM, ELEB, BOT, GPX, TTE and EVO)3 |
| 8 | Management of natural resources and waste | Percentage of manufacturing plants and Embraer service centers with relation to environmental liabilities. | 100% of manufacturing plants and service centers that existed in 2014 with relation to environmental liabilities (and their respective treatment plans). New acquisitions of buildings, installations or businesses, must be preceded by evaluation of environmental liabilities (environmental due diligence), aiming to ensure access to necessary information for the company to make decisions. | 76.47% (13 of 17) | 76.47% (13 of 17) |
| 9 | Atmospheric emissions | Emission of greenhouse gases (scope 1+2)/net revenue.4 | Reduce by 3% the emission of greenhouse gases (scope 1+2) per million dollars of revenue, in relation to the base year 2013. | 5.48 t/million dollars (increase of 8%) | 4.09 t/million dollars (reduction of 19%) |
| 9 | Atmospheric emissions | Emission of VOC/net revenue. | Reduce by 3% the emission of VOC per million dollars of revenue, in relation to the base year 2013 (0.0063 t/million dollars). | 0.0034 t/million dollars (reduction of 46%) | 0.0011 t/million dollars (reduction of 82%) |
| 10 | Human and labor rights | Percentage of individual suits and labor complaint procedures per employee. | Standard of excellence (to be a reference in the market), remaining below the national average for companies in the same sector, in accordance with each country’s regulating organizations. | 0.391%* *corrected number |
0.306% |
| 11 | Employee health and safety | Lost Time Injury Rate (LTIR) | To reduce the frequency rates of lost time accidents by 30%, in relation to 2014’s accident frequency rate (1.74). | 2.25 (increase of 29.31) | 1.19 (reduction of 31.6%) |
| 11 | Employee health and safety | Percentage of manufacturing plants and Embraer service centers with OHSAS 18,001 certification. | 100% of manufacturing plants and service centers that existed in 2014 with OHSAS 18,001 certification. | 47.05% (FLM, EGM, ELEB, BOT, GPX, TTE and EVO) |
47.05% (FLM, EGM, ELEB, BOT, GPX, TTE and EVO)3 |
| 12 | Transparency and communication | Percentage of indicators responded to in the company's Global Reporting Initiative (GRI) report. | Annual GRI Report Coverage Level. | 89.65% | 89.65% |
| 13 | Management of the product’s environmental life cycle | Environmental requirements for developing products. | Incorporate environmental requirements, in addition to those for sound and emissions, for 100% of products launched. | The incorporation of the product’s environmental requirements was implemented in the E2 program. The verification of satisfaction of these environmental requirements, in the E2 program, is in progress. For the next aircraft program to be launched by the company, all environmental requirements will be incorporated, using the DIP (Integrated Development of Products) process. |
The incorporation of the product’s environmental requirements was implemented in the E2 program. The verification of satisfaction of these environmental requirements, in the E2 program, is in progress. For the next aircraft program to be launched by the company, all environmental requirements will be incorporated, using the DIP (Integrated Development of Products) process. |
| 13 | Management of the product's environmental life cycle | Use of the simplified evaluation of the product life cycle ("DfE Matrix"). | Use "DfE Matrix" to evaluate 100% of new products launched; for already existing products, evaluate the equivalent for at a minimum of 50% Embraer revenue. | New products in 2015: Legacy 450, which was evaluated using the DfE Matrix. Total portfolio: E-jets, Phenoms and Legacy 500/450 already evaluated, responsible for 86% of Embraer revenue. | There were no product launches in 2016. Total portfolio: E-jets, Phenoms and Legacy 500/450 already evaluated, responsible for 84.6 % of Embraer revenue. |
| 13 | Management of the product's environmental life cycle | Customer orientation regarding the end of the product's life. | Define document containing Embraer product strategic guidelines with relation to its end of life. | Concluded: the technical guide containing operational guidelines for customers for the proper disposal of products at the end of their life. | Concluded: the technical guide containing operational guidelines for customers for the proper disposal of products at the end of their life. Started: the forming of Corporate Policy for Products' End of Life. |
| 14 | Local socio-economic development | Evaluation average (Balance Score Card) for the results of annually supported projects in the scope of the Social Partnership Program. | Grade 4, in an evaluation of 0 to 5 points. | 2.45 | 3.44 |
| 14 | Local socio-economic development | Number of Embraer volunteers engaged in Entrepreneurship programs, Social Partnership Program and other social projects recognized by the Embraer Institute. | Increase 20% the number of volunteers. | +12% (565 volunteers) | +56.72% (793 volunteers) |
| 14 | Local socio-economic development | Approval of Embraer High School students in entrance exams. | Maintain the rate of approval above 80% for Embraer High School students for their entrance exams. | Embraer Juarez Wanderley High School: 84% of public university approval Embraer Casimiro Montenegro Filho High School: 83% of public university approval | Embraer Juarez Wanderley High School: 86% of public university approval Embraer Casimiro Montenegro Filho High School: 87% of public university approval |
| 15 | Research, development and innovation | Percentage of annual investment in technological development applied to projects with environmental gains. | Continual increase of the percentage of annual investment in technological development applied to projects with environmental gains, up to the minimum of 50% for the base year 2017 (resource to be applied in 2018). | 78% | 80% |
1. Due to fall of revenue in 2015, some indicators have been significantly altered.
2. Considering the training carried out on Anti-corruption – Code of Ethics and Conduct.
3. This goal has been revisited and to ensure its achievement its deadline has been extended to the next 2018-2020 cycle.
4. Considering Scope 1 emissions related to: fugitive emissions; fuel consumption other than kerosene (jet fuel); and jet fuel consumption from production flights (the current portfolio aircraft). Fuel consumption from development flights, new product certification, as well as the Defence and Security UN aircrafts, are not considered.
