sustainability report 2014 (BASE YEAR 2013)
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sustainability report 2014 (BASE YEAR 2013)
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Presentation summary Presentation Who we are 6 8 12 14
Group profile Timeline Our work MRV in numbers
Message from the board Materiality Corporate Governance 23 24
Corporate Structure Ethics and transparency
Responsible Construction 29 30
Make dreams come true My House, My Life (Minha Casa, Minha Vida)
Relations With Clients 36 37 39
Delivery of the keys Technical assistance Certifications
People 44 50 50 51 53
Safety Health Accommodation camps Education Benefits and differentials
Trust and partnership 56 57 58 58
Unions Suppliers Investors Government
For the third consecutive year, MRV Engenharia publishes its Sustainability Report, an initiative that reinforces the commitment with practices and actions aiming at business perennity, and presents its initiatives in the economic, environmental and social areas. The 2013 Report was prepared based on the guidelines defined by the Global Reporting Initiative (GRI), an international organization recognized worldwide for dedicating to the standardization and to improving organizational performance report techniques. The document incorporates some advances comparing to the GRI - G4 version, providing broader and friendlier guidelines for organizations wishing to present their performance. The Report presents MRV Engenharia’s main challeng-
es, achievements, improvements and accomplishments between January 01, 2013 and December 31, 2013, with an emphasis on subjects and topics that evidence the company’s sustainable attitude, the respect and attention that it dedicates to its stakeholders – shareholders, clients, employees, communities, governments, press, financial institutions and partners. When indicated, the information includes consolidated data regarding MRL Engenharia and Prime. Another company in the group, Log Commercial Properties, presents the information related to 2013 in its own report. The 2013 Annual Report did not go through external verification.
Socioenvironmental Commitment 62 64 64 70 71 73
Improvement of construction sites Environment Green spaces Project sustainability Citizenship Sport support
Financial Performance Glossary Summary GRI Technical File
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GRI/ G4-17, 28 e 33
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Who we are Group profile
Largest construction and residential real estate company in the country, MRV Engenharia e Participações S.A. is currently operating in over 120 cities in 19 Brazilian states, and the Federal District. The company, founded in 1979, is highly experienced in managing the construction of residential real estate, being able to anticipate trends and present the best benefit/cost ratio in the marketplace. It has a portfolio of more than 230 thousand active clients and an average volume between 35 thousand and 40 thousand units produced per year. Having its stock traded on the stock exchange market, it integrates Novo Mercado in BM&FBovespa, which gathers companies with high standards of corporate governance.
Subsidiary company specialized in developing, building and leasing commercial properties such as logistics condominiums, industrial plotting, shopping centers, strip malls and offices. It operates in 26 cities in nine Brazilian states and it counts on a portfolio of over 1.5 million square meters, with a projection to operate nationwide.
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It has been operating for over ten years in Rio de Janeiro and Minas Gerais states, with a focus on the production of good quality real estate with better market prices. In 2013, it worked in 28 construction sites in six cities in Minas Gerais and Rio de Janeiro.
Founded in 1994, it started operations in Belo Horizonte. In 2002, it expanded its activities to the Federal District and, later, it got to the cities of Goiânia, Cuiabá and Campo Grande. Its focus is the central-western part of the country and it is now developing projects in six cities in that region. In 2013, the company counted on over 8,600 housing units under construction.
A subsidiary created in July, 2012, its objective is to develop large urban areas in a sustainable way for residential and/or mixed use through the purchase of plots in medium size Brazilian cities and in metropolitan areas with great growth potential. It is presently operating in 10 cities in five Brazilian states.
GRI/ G4- 3, 4, 5, 6, 7 e 8
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Timeline 1979
MRV Engenharia is founded in Belo Horizonte (MG) by the partners Rubens Menin Teixeira de Souza, Mário Lúcio Pinheiro Menin and Vega Engenharia Ltda. Objective: to build and develop projects in the capital city of the state of Minas Gerais.
1981
the first houses and apartments built are delivered in Belo Horizonte. Vega Engenharia leaves the group of partners.
1986
The Company creates its own real estate financing offer.
1992
MRV innovates to be the first construction company in the country to implement a Client Assistance department.
1993
Creation of the so-called finishing kit, another innovation that offers clients the opportunity to have additional options to customize their units.
1994
MRV invests on sportive marketing and starts sponsoring soccer teams and athletes to get more visibility to its brand and to support sports practices.
1995
The first store is launched in Belo
Horizonte.
1996
The Company expands its activities to other cities in the countryside in Minas Gerais, starting to develop and build projects in Uberaba and Uberlândia, in Triângulo Mineiro. At the same time, it starts operations in the state of São Paulo, firstly to the city of Americana and then to Ribeirão Preto.
1999
New company’s ownership structure and start of the operation in Goiânia (GO), totaling its presence in 28 Brazilian cities.
2000
2007
MRV launches a financing plan with fixed installments, which allows clients to have a better financial planning and to control expenses.
2001
The Company arrives to the cities of Rio de Janeiro, Brasília and São Paulo.
2004
When celebrating 25 years, MRV plans and designs its growth to other Brazilian states and cities.
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2006
Beginning of activities in Southern Brazil, with the first operations in the cities of Curitiba and Londrina, state of Paraná.
The Company realized its IPO (Initial Public Offer) going public and its stock is traded at BM&FBovespa. The company now integrates Novo Mercado, which establishes the highest standards of corporate governance in Brazil. The Company enters into a contract with Caixa Econômica Federal and becomes CEF’s first business correspondent in the real estate sector. Beginning of activities in the states of Espírito Santo, Bahia and Ceará.
2008
Business expansion to Mato Grosso and Mato Grosso do Sul states.
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2009
MRV, together with six other companies in the sector, helps the Federal Government in the development of My House, My Life (Minha Casa, Minha Vida), a housing program created to reduce the historical and growing Brazilian housing deficit.
2010
It conquers the national award granted by Inteligência Empresarial da Construção ITC Net 2010 magazine (residential category). MRV was the company that built the most in the country in 2010, with the mark of 6.8 million square meters, a figure that represented over 10% of the 67.5 million square meters built all over Brazil.
2011
The Company consolidates its presence in over 100 cities all over Brazil, with activities in all geographical regions, except the North. A research carried out by BrandAnalytics for Isto É Dinheiro magazine recognizes MRV as the most valuable brand in Brazil among construction companies.
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2012
Sportive sponsorship is restarted for soccer teams and specialized sports. The Company starts to operate in 120 cities and 18 states in Brazil, and also in the Federal District. MRV formalizes its adhesion to the National Commitment for the Improvement of Work Conditions in the Civil Construction Industry program. It is the first company in the residential construction sector to take part in the program.
2013
The Company consolidates its position as the main agent of the My House, My Life Program fostered by the federal government and exceeds the mark of 40 thousand housing units concluded in one year. MRV innovates and starts selling real estate through Facebook. The company uses e-commerce resources since 2011 and it accounts for over 30% of its sales through electronic channels. MRV won, for the third consecutive year, the ITC Net national award (residential category), with 7.5 million square meters built and 401 sites. The National Commitment for the Improvement of Work Conditions in the Civil Construction Industry program is expanded and the company closes the year with 40 classrooms and over 650 students.
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Our performance
ceará
maranhão
• Alagoas: Maceió
rio grande do norte paraíba
piauí
• Bahia: Camaçari, Feira de Santana, Lauro de Freitas, Salvador • Ceará: Fortaleza, Maracanaú • Distrito Federal: Águas Claras, Ceilândia, Gama, Planaltina, Taguatinga • Espírito Santo: Cariacica, Serra, Vila Velha, Vitória • Goiás: Aparecida de Goiânia, Goiânia, Valparaíso • Maranhão: São José do Ribamar, São Luís • Mato Grosso: Cuiabá, Várzea Grande • Mato Grosso do Sul: Campo Grande • Minas Gerais: Belo Horizonte, Betim, Contagem, Juiz de Fora, Lagoa Santa, Montes Claros, Nova Lima, Sete Lagoas, Uberaba, Uberlândia e Vespasiano • Paraná: Arapongas, Araucária, Cambé, Curitiba, Londrina, Maringá, Ponta Grossa, São José dos Pinhais • Paraíba: Campina Grande, Cabedelo, João Pessoa • Pernambuco: Cabo de Santo Agostinho, Caruaru, Jaboatão dos Guararapes,Olinda, Recife 12
pernambuco alagoas sergipe
• Piauí: Teresina
mato grosso bahia
• Rio de Janeiro: Belford Roxo, Campos dos Goytacazes, Duque de Caxias, Itaboraí, Macaé, Niterói, Resende, Rio das Ostras, Rio de Janeiro, São Gonçalo
distrito federal
goiás
• Rio Grande do Norte: Natal, Parnamirim
minas gerais
• Rio Grande do Sul: Canoas, Caxias do Sul, Gravataí, Novo Hamburgo, Porto Alegre, Sapucaia do Sul
mato grosso do sul
espírito santo
são paulo
• Santa Catarina: Joinville, Palhoça, São José • São Paulo: Americana, Aparecida, Araçatuba, Araraquara, Araras, Barretos, Bauru, Birigui, Botucatu, Cajamar, Campinas, Campo Limpo Paulista, Catanduva, Cotia, Ferraz de Vasconcelos, Franca, Guarulhos, Hortolândia,Indaiatuba, Itu, Jacareí, Jundiaí, Limeira, Marília, Mauá, Mirassol, Mogi das Cruzes, Mogi Guaçu, Ourinhos, Paulínia, Pindamonhangaba, Piracicaba, Presidente Prudente, Ribeirão Preto, Rio Claro, Salto, Santa Bárbara D´Oeste, Santo André, São Bernardo do Campo, São Carlos, São José do Rio Preto, São José dos Campos, São Paulo, Sertãozinho, Sorocaba,Sumaré, Suzano, Tatuí, Taubaté, Votorantim
Rio de janeiro
paraná
santa catarina rio grande do sul
• Sergipe: Aracaju GRI/G4 - 6 e 8
GRI/ G4 - 6 e 8
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MRV in numbers* 2013
2012
2011
Net income (R$ million)
3,871
3,804
4,015
EBITDA (R$ million)
643
787
1,045
16.6%
20.7%
26.0%
Net profit (R$ million)
423
528
760
Tax paid (R$ million)
265
313
404
Level of indebtedness
30.4%
40.7%
38.8%
Added value (R$ million)
1,672
1,706
1,963
Contracted sales (R$ million)
5,094
4,005
4,322
Contracted sales (units)
38,449
34,213
38,697
3,517
3,433
4,632
Launches (units)
25,516
29,665
41,825
Finished units
40,205
26,457
23,874
299
333
345
28,578
32,461
29,598
EBITDA Margin
Launches (R$ million)
Projects in progress Number of employees**
Message from Management
Rafael Menin
*Including consolidated data from Prime and MRL, except for numbers related to sales, launches, units concluded and works in progress **Including own and third parties’ employees
Wealth Generation (R$ million) 2013
2012
Employees*
507,5
391,2
Tax and contributions
265,0
312,9
Dividends
140,7
125,3
Suppliers
1,374
1,456
Eduardo Fischer Rafael Menin and Eduardo Fischer Presidency
* Includes direct compensation, benefits and FGTS
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To develop housing units using sustainable constructive, social and environmental practices has been our mark during the 35 years we have been in the real estate market. We understand that sustainable projects are directly related to three requirements: to be ecologically correct, economically feasible and socially fair. For that reason, from design approval, preparation of the areas and real estate development, to construction, development and delivery of the keys, we keep the commitment of mitigating environmental impacts by adopting initiatives for the wellness and quality of life in the communities where we operate and working to exceed our clients’ expectations. In all our projects, we meet environmental and soil use requirements and we operate so as to guarantee the best safety standards in the work environment, besides promoting actions for the health of our employees and their families. Among the highlights in 2013, we reinforce our initiatives to train and qualify our employees, having opened 40 classrooms for literacy and professional qualification courses – 650 students in the sites have benefited. We also increased the number of construction sites that participate in the National Commitment for the Improvement of Work Conditions in the Civil Construction Industry program, whose objective is to provide progress and innovations in that area and to ensure employees have access to fundamental rights related to health, safety, qualification and social protection. By doing that, we fulfilled our role of inducing development and providing advances in the quality of life of our employees, their families and the communities, taking important steps ahead to guarantee the sustainability of our business.
GRI/ G4 - 9, DMA Economic performance e EC 1
GRI/ G4 -1 e 2
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Materiality To prepare the 2013 Sustainability Report, MRV defined its Materiality Matrix based on a survey carried out by an external consulting firm with representatives of the internal and external stakeholders. The stakeholders were selected pursuant to MRV’s strategy and they were consulted according to their availability. Thus, the relevant subjects were identified after personal interviews with members of the company’s board and managerial line; and also after contacts with union representatives, financial agents and investors. In addition to those, an online
Material aspects and reach inquiry was sent to the company’s clients and suppliers. In the first group, 933 questionnaires were returned and 26 suppliers sent their answers. Stakeholder consulting defined, first of all, important subjects according to the evaluation of each one of them. In the second stage, each item of information was pondered and the most recurrent subjects were given priority, which generated a materiality matrix with 13 subjects that are relevant for the internal and external stakeholders consulted.
Indicator Environment
Labor Practices and Human Rights
Materiality matrix
Outer shaft
Construction material and efficiency using resources Employment practices Local development Innovation in constructive processes Employee training and education Waste generation and management Return of investment to sharehol Dialogue, commitment and relation with stakeholders Infrastructure investment for public benefit Clients interaction Access to housing Government interaction Work analog to slavery
Social
Economic Performance
General Content Inner shaft
Aspect Internal
External
Construction material and efficiency using resources
Employees
Not applicable
Innovation in constructive processes
Employees
Shareholders Clients
Waste generation and management
Employees
Communities Environmental agencies Public power
Employment practices
Employees
Communities Suppliers
Employee training and education
Employees
Communities Suppliers
Work analog to slavery
Employees
Government Suppliers Public power NGOs
Dialogue and commitment with stakeholders
Employees
Communities Suppliers Press
Investment in infrastructure for public benefit
Employees
Communities Public power Government
Access to housing
Employees
Communities Clients
Local development
Employees
Communities Suppliers Government
Return of investment to shareholders
Employees
Shareholders
Employees
Government Public power Environmental agencies
Interactions with the Government Interactions with clients
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GRI/ G4- 24, 25 e 26
GRI/ G4- 18, 19, 20, 21 e 27
Stakeholders
Employees
Clients
Priority Very High High 17
Corporate Governance Listed on BM&F Bovespa’s Novo Mercado, the company operates with transparency and ethics
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Committees Human Resources - its task is to define strategies to attract and retain company talents in addition to proposing development, training and remuneration programs and actions to employees. Formed by: Levi Henrique (director) Rafael Nazareth Menin Teixeira de Souza (director) Júnia Maria de Sousa Lima Galvão (Chief Administrative and SSC Officer) Leonardo Guimarães Corrêa (Chief Financial Officer)
Administration Council – Standing, left to right: Marco Aurélio de Vasconcelos Cançado, Marcos Alberto Cabaleiro Fernandez, João Batista de Abreu and Rafael Menin. Sitting (left to right): Levi Henrique, Rubens Menin Teixeira de Souza and Fernando Henrique da Fonseca
The Company is a publicly held company with stock traded at BM&FBovespa. MRV has integrated Novo Mercado since capital opening in 2007. Its presence in that segment that demands high corporate governance standards confirms the purpose of working with transparency and ethics, making comprehensive information on its economic and financial performance available. And it also reinforces the commitment to adopt egalitarian treatment towards all the levels of its ownership structure, as well as towards employees, suppliers, clients and creditors, among other duties. The company also adhered, in August 2011, to the Self-Regulation and Good Practices Code issued by the Brazilian Association of Publicly Held Companies (Abrasca). The document sets forth principles, rules and recommendations, and its objective is to improve corporate governance initiatives. The highest department of the company’s structure is the Board of Directors, consisting of seven members, four of which are independent and three take part in the group that controls the company. The
Board meets ordinarily every three months and extraordinarily whenever convoked by its president or by two directors. Its members are elected in a general meeting for a three-year term of office. Among the Board’s tasks are the definition of strategic and commercial policies, the election of the board and management follow-up and inspection. Issues that are critical or very relevant for the company and that may deserve evaluation by the Board of Directors are reported via standard communication flow by the hierarchical scale. In 2013, no issues of such a nature were presented. The Executive Board, which has the responsibility of managing the company,consisted in 2013 of 11 members elected by the Board of Directors for a two year term of office, with the option of reelection. All members of the Executive Board and the Board of Directors are Brazilian, hired by the company and live in communities where the company operates. The Board of Directors is supported by six Management Committees, with specific responsibilities and that count on the participation of advisors and executive directors.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 20
GRI/ G4 -38, 42, 47, 49 and EC 6
Corporate governance – it follows up the progress of the most advanced international corporate governance practices to propose adjustments and changes to the company’s practices whenever it may feel necessary. Formed by: Levi Henrique (director) Júnia Maria de Sousa Lima Galvão (executive director) Maria Fernanda Nazareth Menin Teixeira de Souza Maia (Chief Legal Officer)
Customer Relations – it is responsible for solving or minimizing general situations that are generating problems for the clients and also for defining strategies to improve processes in order to increase client satisfaction. Formed by: Marcos Alberto Cabaleiro Fernandez (advisor) Eduardo Paes Barretto (Chief Commercial Officer) Flávio Vidal Cambraia (executive manager)
Real Estate Development – that committee is responsible for defining the company’s geographic expansion strategy and also for land acquisition. Formed by: Rubens Menin Teixeira de Souza (Board Chairman) Rafael Nazareth Menin Teixeira de Souza (Chief Executive Officer) Marcos Alberto Cabaleiro Fernandez (director) Hudson Gonçalves Andrade (Chief Real Estate Development Officer) Eduardo Fischer Teixeira de Souza (Chief Executive Officer)
Risk Management – it assesses the company’s financial and operational risks and it also sets forth mitigation strategies. Formed by: Marcos Alberto Cabaleiro Fernandez (director) Marco Aurélio de Vasconcelos Cançado (director) Leonardo Guimarães Corrêa (Chief Financial Officer) Maria Fernanda Nazareth Menin Teixeira de Souza Maia (Chief Legal Officer) Ethics – its responsibility is to analyse situations that have not been forecasted by MRV’s Code of Conduct in order to define procedures, clarify document interpretation doubts and assess situations where the Code has not been followed, among other tasks. It also carries out an annual review of its content and updates it whenever it may feel necessary. Formed by: Marcos Alberto Cabaleiro Fernandez (director) Rafael Nazareth Menin Teixeira de Souza (Chief Executive Officer) Leonardo Guimarães Corrêa (Chief Financial Officer) Júnia Maria de Sousa Lima Galvão (Chief Administrative and SSC Officer) Maria Fernanda Nazareth Menin Teixeira de Souza Maia (Chief Legal Officer)
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment GRI/ G4 – 34, 35, 38, 42, 47, 49, 50 and EC 6
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Corporate Structure President of the Board of Directors Rubens Menin
Chief Executive Officer Rafael Menin
Chief Administrative and SSC Officer Júnia Galvão
Chief Financial Officer Leonardo Corrêa Chief Investor Relations Officer Mônica Simão
Chief Executive Officer Eduardo Fischer
NE Regional Office MG, GO, RJ and ES
SP and South Regional Office
Chief Legal Officer Maria Fernanda
Director of Institutional Relations Sérgio Lavarini
Chief Production Officer Relations Homero Paiva
Stock Ownership Breakdown The capital of R$ 3,197,818,887.10 was represented by 483,102,222 shares on 31/dec/2013. The company’s market value on the same date corresponded to R$ 4.1 billion. In 2013, a daily average of R$ 42.6 million in negotiations involving MRV’s shares (MRVE3) was registered, a financial volume lower than the one verified in 2012. The drop regarding the total volume of business deals was directly connected to uncertainties and skepticism towards the stock market last year.
Chief Commercial Officer Eduardo Barretto
Chief Real Estate Development Officer Hudson Gonçalves
Chief Real Estate Financing José Adib
Subsequent event Coverage On March 26, 2014, during an Extraordinary General Meeting, MRV Engenharia e Participações’ shareholders approved a proposal to restructure the management of the Company by changing the Articles of Incorporation and defining that the Board of Directors Chairman and Chief Executive Officer positions cannot be held by the same person. Another relevant change was to define a co-presidency model based on the creation of two presidencies with different tasks and scope: • Rafael Menin became the Chief Executive Officer for Region I. He is responsible for the compa-
ny’s businesses in Minas Gerais, Espírito Santo, Rio de Janeiro, Center-Western and Northeastern Brazil. He is also responsible for the Executive Boards of Administration and Shared Services, Finance and Investor Relations. Eduardo Fischer Teixeira de Souza holds the position of Chief Executive Officer for Region II, with the responsibility over operations in São Paulo, Paraná, Santa Catarina and Rio Grande do Sul, besides coordinating the Legal Executive Board and the Institutional Relations Board.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 22
GRI/ G4 - 38 and 39
RUBENS MENIN TEIXEIRA DE SOUZA
Executives and Board members
Other shareholders
Treasury shares
33%
2%
63%
2%
MRV ENGENHARIA E PARTICIPAÇÕES S/A
10.0%
8.6%
23.7%
24.1%
13.5%
30.5%
Although its operations are limited to Brazil, MRV arouses the interest of investors worldwide, especially in America (except Brazil), as shown on the percentual graph of shareholders per region comparing to total outstanding shares.
48.1%
18.2% 2013
39.5% 35.0%
27.8%
21.0%
2012
2011
Brazil
America (except Brazil)
Europe
Asia & Oceania
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 23
Ethics and transparency MRV’s employees’ behavior is ruled by standards and guidelines defined by MRV Group’s Code of Conduct, which sets forth parameters to guide the relationship with the company’s stakeholders (employees, shareholders, clients, partners, competitors, suppliers, communities, unions, public and governmental entities, among others). The document, reviewed in 2012, also reinforces the commitment to health, safety and professional integrity of employees, the environment and social responsibility. The company keeps an Ethics Committee consisting of three chief officers and two directors. The Committee assesses situations where the Code is not followed and it evaluates situations that have not been foreseen by the document to define procedures regarding them. It manages the communication channels made available for questions or accusations related to possible irregularities connected to compliance to guidelines and it also carries out the annual review of the document. To report procedures that may confront the guidelines in the Code of Conduct or for other issues, the company makes two communication channels available: MRV Confidential Channel, to report cases of non compliance/violations of the Code, policies, procedures and internal regulations of the company and the current legislation in the country. The channel is managed by an outsourced company, which guarantees that information remains confidential, and it may be accessed via email, telephone (0800 888 2833) or the specific site www.canalconfidencial.com.br/mrv.
MRV makes communication channels available for issues related to ethics to be reported. MRV’s Code of Conduct Channel aims at clarifying doubts regarding the document and it also receives suggestions for the company’s ethics management. That tool is available through an e-mail address disclosed to all employees. In case of questions, they are instructed to report to their immediate superior or to send an e-mail message to the Ethics Committee (comitedeetica@mrv.com.br). Nowadays, MRV has not got specific procedures to evaluate risks of corruption and neither has it measured events of that nature. However, the subject is approached on its Code of Conduct, a document that states MRV’s support to anticorruption practices according to the international conventions. The Risk Management and Internal Audit area is working, together with the Legal Department, to develop and implement an anticorruption policy at MRV. In 2013, no corruption events were registered in the company or in its controlled companies.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 24
GRI/G4 - 56, 58, DMA Complaints mechanisms on labor practices and DMA Anticorruption
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 25
RESPONSIBLE CONSTRUCTION In 2013, 37.6 thousand housing units were build in 299 construction sites in the country
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Business
Make dreams come true
Development, construction and sale of housing units.
Mission Make the dream of home ownership come true by offering housing units with the best cost/benefit ratio for the client.
The company intensified the actions to improve its production in 2013, with emphasis on the quality of its units produced and on project cost control. That work was carried out by a team with a lot of experience in low income residential projects and represented by six production directors, 68 supervisors and 272 engineers – in addition to a contingent of qualified
workers, who secured the construction of 37,600 equivalent units (39,656 in 2012). 299 construction sites spread countrywide, with an average number of 322 units per site. In 2013, 31,100 housing units were delivered – already in the first semester of 2014 that figure totaled 22,424 units.
Vision Be the best company in the development, construction and sale of low income real estate in Brazil.
Values
Housing units delivered in 2013 2013 Month
2014 Forecast
Jan
2,039
2,791
Feb
1,252
2,829
Ethics and transparency;
Mar
1,895
2,867
Apr
1,939
2,905
Think like the client;
May
2,220
2,943
Jun
2,441
2,981
Jul
2,453
3,019
Aug
2,584
3,057
Sep
2,862
3,095
Oct
4,164
3,133
Nov
3,171
3,171
Dec
3,209
3,209
TOTAL
31,100
36,000
Add value for the shareholder; Committed team; Share success; Sustainability.
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My House, My Life (Minha Casa, Minha Vida) In 2013, MRV maintained the leadership in the federal government’s My House, My Life (“MCMV”) program, with 43,465 units transferred to banks, comparing to 36,261 in 2012. 519 projects were contract financed, amounting to R$ 6.6 billion, which represents 1.7 times the volume of the second company operating in the program. From the total sales of 38 thousand contracted units in 2013, corresponding to R$ 5.1 billion (or 27% above the total of the previous year), 87% of the units were eligible to the program. In MCMV2 only, a program launched by the government in 2011 with a forecast of 2.75 million units to be offered all over the country by the end of 2014, MRV amounted to 161,480 contracted units by 31/March/2014. That corresponds to 7% of the total offered by the construction sector. The experience in the execution of works for the low income segment and the outstanding performance in real estate credit make the company the main partner of Caixa Econômica Federal (CEF) and Banco do Brasil (BB) in the program. MRV counts on a team of over 1,300 employees (own and outsourced) dedicated to the real estate credit activity. They work so as to optimize financing processes for construction and for clients before financial agents. In addition to that, the team develops strategies to increase access to its real estate such as financing the installment for saving required for levels II and III (between 10 and 20% of the total amount of the real estate) in the My House, My Life program.
MCMV 1 (2009-2010)
Experience on construction in the segment of popular housing
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 30
MCMV 2 (2011 - 2014)*
TOTAL
MRV
%
1,005,028
50,384
5%
Level I
547,874
0
Levels II and III
430,154
50,384
Contracted units
TOTAL
MRV
%
Contracted units
2,356,922
161,480
7%
0%
Level I
1,097,045
3,180
0%
12%
Levels II and III
1,259,877
158,300
13%
*By March/2014
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 31
CLIENT RELATIONS New tools were launched in 2013 to approximate MRV and its clients even more
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33
230,000
2,876
48,768
7.86
506,060
3,533
145,000
98.59%
282,004
96,000
active clients
calls received on 4005-1313 (monthly average), totaling 585,212 calls during the year
assistances concluded (information, requests and complaints)
online communications through the Relation Portal
accesses to the Relation Portal (monthly average), which corresponds to 3,384 access/year
active contacts through the Call Center to welcome clients to their new homes
is the satisfaction score at the Ombudsman. The scale varies from 0 to 9. That means 88.6% of quality in the assistance.
assistances via Twitter and Facebook through MRV Responde channel
assistance to requests received via Talk to Us
In 2013, the company improved the existing tools and launched new products to increase interaction with clients. One of the main initiatives was restructuring the Relations with the Client Portal, which got new functions and started to use friendlier language to ease understanding. After the changes, when you log into the exclusive environment, the tool automatically recognizes what stage of the business the client is in (records approval, financing request, etc.) and makes information and guidance available, such as documentation requirements and explanations on procedures. Videos and links provide clarifications on steps to make the real estate regular in case the client is already, for example, signing a financing contract. It is also possible to follow up the construction progress schedule and the rhythm of the project along construction stages: foundation, structure, brickworks, finishing and common areas. There, the client is able to access photos of the construction and even get some decoration tips. A glossary with frequent questions, explanatory leaflets and access to 11 vid-
eos posted on YouTube help understand technical issues that, many times, the buyer is not aware of, such as requirements and documents necessary for financing, the meaning of Certificate of Occupancy and Municipal Property Tax (IPTU), among others. The videos, a pioneer initiative in the civil construction market, are available from MRV Connection (www.mrv.com.br/conexaomrv) and they were accessed over 96 thousand times in 2013. The Portal also allows for financial management such as issuing a second copy of the payment slip and following up the installment payment balance. To make sure the client is always well informed and can follow up all construction stages, the Relation team invested on the Communication Ruler project in 2013 by forwarding over 145 thousand information bulletins online and through the Relation Portal. Those information bulletins include, among other subjects, urbanization works carried out by the company in the areas that surround the project and that contribute to add value to it, resulting in better quality of life for the future residents.
accesses in 2013 to 11 videos posted on You Tube
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 34
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Technical assistance MRV’s Technical Assistance operates in about 90 cities to secure quick and efficient assistance to requirements coming from a base of 115 thousand clients under guarantee. The team counts on 1,200 own and outsourced employees, including managers, coordinators and professionals in the administrative and technical specialized areas, from civil engineers, building technicians and operational workers (bricklayers, painters and electricians, among others). In 2013, the company invested in the improvement of client assistance and started working with the SAP system for demands and requirements received by field teams. The technicians started using tablets with the new software, optimizing the process and insuring quicker access to information for client assistance. Nowadays, 76% of Technical Assistance
Delivery of the keys The process of delivering the real estate is another important stage in the Client Relations and, for that reason, it deserves special attention from MRV. The company makes contact with the buyer (by telephone or through the Portal), inviting him or her to an event that is organized by the Technical Assistance area and called “Delivery of Dreams”. The event was created in 2012 with the objective of turning the delivery of the keys into a formal and special moment with customized assistance and reinforcing the guidance on the real estate. In addition to the Owner’s Manual, the client receives a gift to mark the beginning of a new stage in his/her life. When the unit is released ahead of time, MRV sends a virtual card to celebrate that moment.
The Owner’s Manual is also available from the Relation Portal, allowing the client to access and download hydraulical and electrical installation floor plans corresponding to his/her unit, watch the animations that indicate the procedures for preventive maintenance and list items under guarantee, suppliers and concessionaires’ contact details. In case help from the Technical Assistance is needed after the keys are delivered – the guarantee lasts five years – the request can be made online. With one click, it is possible to schedule a visit, report an event and schedule inspection by one of MRV’s experts.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 36
demands are concluded up to 30 days after request. Besides taking care of maintenance required by clients, the Technical Assistance area prepares owners to receive the projects, making the implementation of the condominium possible and guiding actions such as the election of building managers, assistants and the management body. It also forwards information on its functions and on life in a condominium, financial management (condominium services and fees), and the preventive maintenance of common areas. Clients also receive, together with the keys, the Owner and Common Areas Manual, with videos about installations, care and cleaning, besides the unit plan with all necessary information to preserve the good conditions of the unit.
Consumer protection agencies The company developed in 2013 a visit agenda to get closer to Procons (local agencies that protect consumers rights) in the cities where MRV operates. 37 Procons were visited and a direct relation channel with MRV was established to ease the solution of questions/doubts aroused by clients. A direct line (hot line) was made available so that customized assistance was given to representatives of Procon’s
regional offices. That work continues in 2014 and the objective is to reach 100% of the Procons in the cities where MRV is present. In 2013, seven administrative procedures related to complaints regarding delivery timeframes were started. One only fine worth R$ 16 thousand was given and the other procedures have not been concluded yet.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment GRI/ G4- DMA Labelling of products and services, customer Privacy and Compliance
37
Mascot After finding out that most of the contracts are made by women and in order to get even closer to its clients, MRV launched in 2013 a new Client Relations mascot: Maria Rosa Vaz (the initials from MRV), an attentive character that transmits safety and calm and that helps clients make the dream of home ownership come true. Since last year, she is the one in the social media and on the contact telephone number (31) 40051313, where she welcomes and guides clients to clarify doubts or forward requests. By clicking on the interrogation mark posted on the screen, Maria Rosa Vaz appears in explanatory videos to help find information in the Portal.
Certifications The company invests in the continuous improvement of its products, monitoring opportunities identified by the maintenance team and reviewing projects and material, among others. It also works with waste management programs in the sites. Since 2001, it is certified to ISO 9001 and PBQP-H Level
Evaluation The work to improve processes and consolidate the humanized assistance, where the teams receive incentive to interact with the client using a closer, lighter and friendlier language, secured a score of 7.86 in the quality survey in 2013, in a scale from zero to nine.
New projects That rate represents 88.6% of quality in assistance, according to the evaluation concluded by clients in over 500 thousand calls answered by MRV during the year. The percentage of complaints in the social media was below 1% (0.98%) last year.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 38
A (Brazilian Program for Quality and Productivity of Habitat) quality standards. It is currently undergoing the process of certification to ISO 14000 – Environment, and OHSAS 18000 – Occupational Health and Safety standards.
GRI/ G4 – PR 5
In 2014, MRV forecasts new actions to try to get closer to its clients: the Portal is going to count on a specific area for the administrators of the buildings delivered. There, you can find information on the condominium process (legislation, obligations, responsibilities, common areas etc). The building administrators are going to have an exclusive channel for communication with the Technical Assistance and receive the necessary guidance for administration.
To strengthen the contact with stakeholders, the Portal is also going to present stories and spontaneous testimonials from clients who bought an MRV and it is going to make sustainability actions carried out by the company available, besides giving tips on the subject of “2014 – Sustainability Year” to spread sustainable concepts and practices among its more than 23 thousand clients.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 39
PEOPLE MRV recognizes and values its employees, who are essential for the success of the company
40
41
The company recognizes and values the importance of its employees for the development of its businesses and for its sustainability. For that reason, it maintains a relationship based on respect, ethics and partnership with its over 23 thousand workers. People management at MRV is ruled by guidelines that involve talent contracting, valuing and retention, going through constant incentive to personnal and professional development and insuring the maintenance of a healthy organizational climate that contributes to innovation and to the improvement of the company’s results. Employees count on remuneration and benefits compatible to their positions and to the construction market. There are no salary differences based on gender. Everywhere it operates, the company adopts the minimum national wage as
42
the floor and it fully follows collective labor agreements signed with labor unions. The company also offers opportunities for young professionals and, since 2011, it carries out its annual Trainee Program to select and prepare these professionals to work in the company aiming at future opportunities in leadership positions. During the 18 months the program lasts, approved candidates have experiences in several areas at MRV with direct follow up of the Human Development area and the high management, immerging in the culture of the company to present a project at the end of the period. In the 2013 edition launched in the second semester of the previous year, 18 professionals from several areas were engaged.
GRI/G4 – 10, DMA Employment, DMA Equal remuneration EC 5 and LA 13
People management is ruled by guidelines that stimulate professional and personal growth
Progress of the workforce* 29,600 26,176
26,997 Progress of the number of employees working at MRV’s construction sites
2013
2012
2011
*It includes contractors and excludes trainees
GRI/ G4 - 10
43
Safety Care and attention towards employees, evidenced by a set of initiatives to secure the best safety standards in the work environment, are differentials that mark MRV’s operations. Health is also a priority for the company, which bases its actions on the Occupational Health and Medical Control Program (PCMSO), encompassing protection, prevention and promotion of wellness. In addition to following the legal requirements defined on the regulatory standards issued by the Minis-
try of Labor and Employment and by the Consolidation of Labor Laws (CLT), the company carries out trainings and events to raise employees’ awareness on the need to practice safety in all activities on a daily basis. Work and safe practices follow up are carried out by professionals in the Specialized Services in Safety Engineering and Labor Medicine team (Sesmt): in 2013, 261 professionals working in the area were mobilized at the 299 construction sites in operation during that year.
HSE MRV counts on a Health, Safety and Environment (HSE) Policy that grants those subjects as much importance as the other variables in business management receive and that includes the following commitments: Act preventively Prevent employees from having diseases and injuries especially the ones related to the use of tools and working at heights. Prevent pollution, with a focus on the impacts related to waste generation, and promote the rational use of environmental resources.
its environmental aspects and to safety and occupational health hazards. Improve continuously Look for the continuous improvement of the safety, occupational health and environment management performance. Incentive people’s commitment Promote actions to raise employees and partners’ awareness for people to commit to the improvement of safety, occupational health and environmental performance results.
Meet legal requirements Meet the applicable legal requirements and other requirements subscribed by the company and related to
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 44
GRI/ G4 DMA Health and Safety
45
Proactive performance The company carries out the Internal Week for the Prevention of Labor Accidents (Sipat) as well as campaigns to promote and raise awareness over safety, health and environment at all construction sites in order to reinforce the practice of safe behavior in the work environment. The agenda includes lectures on the importance of the use of Personal Protective Equipment (EPIs), risks and behavior required for working at heights, actions to prevent sexually transmitted diseases, diabetes and promotion of sustainability, among other subjects. In 2013, Sipats carried out at MRV’s 10 regional offices involved 24,600 participants.
The events count on the partnership of local companies and public agencies and they are also an opportunity to have health campaigns such as vaccination, blood donation and lectures on alcohol, drugs, high blood pressure and smoking. At Sipats, social activities are also carried out such as handicrafts and professional qualification workshops for the community. The Toolbox Talks (DDS) are another important tool to prevent accidents and to reduce the risks of working at construction sites. The company maintains Internal Commissions for Accident Prevention (Cipas) at all sites. At many of them and also at the headquarters, employees are offered labor gym sessions twice a week.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 46
GRI/ G4 DMA Health and Safety
The practice of safe behavior is also emphasized at the “Safety Championships”, when the best performance following Regulatory Standards is elected (in order to take part, it is necessary to have efficiency of at least 85%). Still last year, the company’s construction sites received 149 inspections by the Ministry of Labor and Employment (a growth of over 93%) and no events or notifications took place in 119 of them, which represented a rate of 80% of assertiveness. There was significant progress comparing to 2012, when assertiveness rate was 52%, with 42 sites without notifications out of 77 inspections.
Three fatal accidents were registered in 2013, one of them being characterized as ‘on the way’. Accidents of that kind, especially with motorcycles, had significant participation in the yearly records, which reinforces the importance of guidance and preventive actions towards employees and third parties. Also in 2013, 348 administrative procedures were opened by the Ministry of Labor. Only 8% of them generated notices of violation, resulting in the payment of R$ 89.2 thousand by the company.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment GRI/ G4 DMA Health and Safety, LA 6 and LA 16
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Frequency and severity rate per regional office* Regional office
MH Men/hour
Frequency rate RWFR Restricted Workday Frequency Rate
LWFR Lost Workday Frequency Rate
TFR Total Frequency Rate
Rate of severity assessment
Belo Horizonte
6,214,120
3.87
37.19
46.03
11,984.36
Campinas
6,301,900
7.98
51.95
64.48
15,024.32
Center-Western
10,124,840
3.34
45.09
50.80
910.44
Curitiba
4,072,860
10.71
196.58
207.29
1,339.00
Espírito Santo
1,826,880
0.00
19.08
19.08
841.85
Northeast
11,931,040
1.01
30.81
31.82
491.80
Porto Alegre
835,340
0.00
46.00
46.00
603.50
Ribeirão Preto
7,916,480
5.45
71.60
82.43
11,565.83
Rio de Janeiro
6,971,800
1.94
47.60
49.54
471.83
São Paulo
8,890,860
0.00
37.45
40.48
975.73
Triângulo Mineiro
3,823,160
16.02
66.59
82.41
1,131.03
*Information regarding MRV, Contractors, Prime and MRL Absenteism rate was within standards forecasted by the company with the presentation of 5,380 medical certificates for leaves of up to 15 days (4,398 in 2012).
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GRI/ G4 - LA 6
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Health Initiatives in that area involve all the procedures defined by Regulatory Standard NR-7 issued by the Ministry of Labor and Employment, as well as periodical and complementary occupational medical exams. Vaccination campaigns for employees include immunization against the flu (H1N1 vaccine) that, in 2013, reached 8,217 employees in the construction sites and offices. The application of yellow
fever and antitetanic vaccines, among others, and updating immunization cards are part of the work carried out in partnership with the official health agencies. Through partnerships with companies that provide health services, employees’ families also count on medical assistance in the areas where the company operates.
Accommodation camps In order to improve the work environment at the sites, the company developed and started using in 2012 a daily follow up system to monitor the condition of accommodation camps, which receive about five thousand workers during the year. The follow up methodology establishes that a Labor Safety technician is to evaluate accommodation camps daily based on the requirements of Regulatory Standards 18 and 24. The technician has to issue an electronic report – with photos – on each unit on a weekly basis. The reports are available online in a system hired by the company and called Pódio. It is monitored by MRV’s board, which guarantees better control over the conditions of the accommodation sites. In case the technician finds any irregularities during inspection, he or she is in-
Education dependent to correct the problem and adjust the place to applicable standards or even to relocate employees to hotels and hostels until the problem is corrected. In 2013, over 21 thousand reports were posted in the Pódio System. Those documents are also presented during inspections carried out by the Ministry of Labor. Facilities available at the construction sites include canteens and employees’ entertainment and resting areas called living areas. As a result of that work, MRV Engenharia received in 2013 the “Best Living Area” award granted by the Union of the Civil Construction Industry of the State of Minas Gerais (Sinduscon-MG) and the Social Service of the Construction Industry of the State of Minas Gerais (Seconci-MG) for its works in the Metropolitan Area of Belo Horizonte.
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MRV invests regularly in training and qualifying its employees and it maintains classrooms in its construction sites spread all over the country for youngsters and adults in order to eradicate illiteracy and also to improve its employees’ professional qualification. Along the year of 2013, 40 classrooms were opened to benefit over 650 students. They had access to literacy (primary school) and professional qualification courses at the workplace. Whenever possible, the classrooms are also opened for their families as well and neighboring communities. The initiative is linked to the National Commitment for the Improvement of Work Conditions in the Civil Construction Industry program and it contributes for thepersonal and professional growth of employees. The target for 2014 is to reach 100 classrooms. The company also hires students from professionalizing courses given by the National Service for Industrial Apprenticeship (Senai) all over Brazil such as the National Program for the Access to Technical Education and Employment (Pronatec).
In addition to that, it carries out ongoing training courses involving its employees to improve qualification and to contribute for professional growth. In 2013, almost one thousand presential training courses were given besides about 26 thousand hours dedicated to virtual qualification.
Training courses in 2013 Number of presential training People trained Total number of training hours
977 4,315 36,665
In addition to those, virtual training courses carried out at MRV totaled 25,903 hours.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment GRI/ G4 DMA Training and education and LA 9
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Benefits and differentials MRV’s employees have at their back and call, for themselves and for their families, a list of benefits that include health insurance managed by medical and odontological companies, besides partnerships with drugstores to buy medicine for special prices. They also count on collective life insurance, meal tickets,
basket of food staples and transportation vouchers. A differential regarding the benefit package is the birth basket for all employees and that includes items for the newborn (drugstore and hygiene products) and a food basket for the mother.
Agreement In September 2013, the companies in MRV Group and the Labor Public Prosecution (MPT) signed in BrasĂlia an innovative agreement that suspended 11 lawsuits against the construction company at the Labor Court of Justice. Through that document, MRV Engenharia agreed to adopt several measures regarding labor contracts. Activities subject to outsourcing were listed and a four-month timeframe was agreed for implementation all over Brazil.
Corporative Governance | Reponsible Construction | Relations With Clients | People | Trust and partnership | Environmental Commitment 52
With that agreement, MRV restated its commitment to follow all rights forecasted by the Brazilian labor legislation, which has always been one of the main focuses of the company. For MRV, the terms of the commitment provide legal safety for it to keep working and promoting social wellness, launching a new stage in the inspection of labor relations by the Public Prosecution at its construction sites.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment GRI/
GRI/ G4 - LA 2
53
Trust and partnership Dialogue and participation channels guarantee an open relationship with the company’s stakeholders
54
55
Suppliers The open, transparent and continuous relationship with its stakeholders is one of MRV’s work pillars and it is part of its values. The company maintains dialogue and participation channels with its stakeholders (employees, unions, clients, suppliers, shareholders, communities and governments) to reinforce the trust and increase interaction with society.
Through its representatives, it takes part in entities and associations linked to different interests such as the Brazilian Association of Developers (Abrainc), regional unions of the civil construction industry (Sinduscons) and the Institute Minas for Peace.
Unions MRV respects and follows collective labor conventions and collective agreements signed with unions in the states where it operates. In 2013, 45 agreements were signed with unions in the cities where the company is working and that reached 100% of MRV’s employees. The agreements include clauses related to safety, health, medicine and hygiene at work, besides establishing compliance with the reg-
ulatory standards related to those subjects and the implementation of programs such as the Medical Control of Occupational Health and Environmental Risk Prevention, among other aspects. Employees are also represented in the formal committees for health and safety. In 2013, no situations where the right to free association and to collective negotiation was denied were seen.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 56
GRI/ G4 - 11 and 16
The relationship with suppliers is based on the company’s values and Code of Conduct. It aims at establishing lasting agreements ruled by mutual trust. Service provider selection and contracting, and material and equipment purchase are defined according to strict criteria guided by standards that encompass from the qualification of the company to contract signature. MRV negotiates around R$ 1.4 billion annually buying and contracting 25 thousand items (R$1.375 bilion in 2013), close to 9.2 thousand active suppliers, from a total of 12 thousand registered suppliers. Purchases are carried out by the Procurement area, which counts on 167 professionals divided into 19 teams spread all over the country and also directly on the sites. The Procurement area works in integration with the Production area to contract equipment, strategic and higher value added services (foundations, demolitions, earthworks, paving, electric networks etc). About 430 thousand orders are generated annually – one order every 17 seconds. In 2013, the Procurement area was responsible for 51% of the disbursement for construction (the remaining 49% are practically just related to the workforce, which includes engineers, contractors and employees wages). Services from small local suppliers are hired from the construction sites. The company has no exclusivity agreements with suppliers and it surveys the marketplace on a daily basis, which insures significant economies of scale. Having sustainability as one of its principles, MRV works with wood coming 100% from reforestation
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment GRI/ G4-12, DMA Purchasing Practice and EC 9
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and, only in exceptional events, it uses wood from native forests since it is certified. The same happens with sand and other inputs, for which the supplier has to submit the corresponding certificate of origin and permit to operate. As a requirement, outsourced employees work under the same conditions as the contracting party’s employees. Contractors have also to offer suitable accommodation camps, good quality meals and give the necessary attention to the health and safety of its employees.
Labor, product and service suppliers are selected using specific criteria of labor practices that include, for example, forbidding the use of child labor, slave labor or discriminatory practices. The contracts count on clauses on that purpose and establish strict penalties – including contract termination – in case of non-compliance. There are no records of suppliers with negative impacts regarding labor practices or violations to human rights in 2013.
in partnership with employer entities such as Sinduscons (Union for the Civil Construction Industry, with a regional reach) or Abrainc (Brazilian Association of Developers, with a national reach). Actions restricted to municipal legislations are discussed directly with the City Halls in the cities where we operate.
Investors With 63% of its shares in the hands of investors in the country and abroad, the company maintains close contact with analysts and representatives of the financial sector. In 2013, there were nine presentations including disclosure of quarterly results, 23 conferences, 67 meetings, besides 11 visits to the construction
sites and 10 road shows. A total of 916 investment funds received information or had contact with representatives of the company, which also tried to increase its presence before individual investors through chats, brokers and specialized websites.
Government The company maintains a close relationship with governments and public agencies having as a parameter the subjects connected to its business activity as well as to its position regarding issues involving sustainability. MRV tries, for example, to actively participate in sectorial issues in the federal, state and municipal spheres related to legislations and standards that
rule the MHML Program, or the ones that address the standardization of labor practices, such as the NRs issued by the Ministry of Labor and Employment. Likewise, it works to participate and have influence in debates on some regulatory aspects of the civil construction industry. For subjects in the state and federal spheres that have a sectorial interest, the company usually works
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GRI/ G4 - DMAFreedom of association and collective bargaining, child labor DMA, DMA slave or compulsory labor and HR 6
GRI/G4 - 15
59
SOCIOENVIRONMENTAL COMMITMENT At the same time it works to improve its employees and their families’ life conditions, the company is focused on the development of the communities where it operates
60
61
Sustainability, in all its aspects, is one of MRV’s values that guide its performance in order to meet or exceed its partners’ expectations. At the same time it works to improve its employees’ work and life conditions, the company is focused on improving the quality of life in the communities where it operates. Besides offering construction projects technologically and environmentally correct, it works to reduce the possible impacts its activities may have on the environment.
In 2013, the company received some notices of violation in the environmental area related to non-compliance with conditioning factors such as permits, Permanent Preservation areas, solid waste destination and earth moving, among others. From 19 proceedings opened during the year, only one administrative decision maintained a fine against the company. Last year, fines totaled R$ 118.8 thousand.
Improvement of construction sites Only construction company in the country focused in residential real estate to adhere in 2012 to the National Commitment for the Improvement of Work Conditions in the Civil Construction Industry program, MRV expanded its reachness in 2013: the guidelines established in the government program proposal are already in practice in 22 of its 299 construction sites (on 31/dec/13) in 14 cities of the country, benefiting over four thousand workers. Launched in March, 2012, the Commitment is a joint initiative of the federal government and unions representing construction companies and workers. Its objectives are to provide for advances and innovations in the work relations and conditions and, also, to make sure workers have access to their fundamental rights related to health, safety, qualification and social protection. It
also involves actions related to worker recruitment, education and qualification, besides union representation at each site and relations with the community. Each construction site taking part in the program counts on union representatives who act as a connection between employees and the company. Those representatives, who are employees chosen by the unions, dedicate part of their daily journey to help and listen to professionals in the projects. The procedure eases understanding information on work and safety conditions, for example, allowing for quicker and more effective interventions to solve the problems and to adopt new practices. Program duration is 24 months for each site and it can be extended for additional six months. For 2014, the target is to take the program to eight additional sites.
• bahia: Camaçarí • distrito federal: Taguatinga
paraíba
mato grosso
bahia
• espírito santo: Serra • Mato grosso: Várzea Grande • Mato Grosso do Sul: Campo Grande • São paulo: Ribeirão Preto, São José dos Campos, Rio Claro, Votorantim, Itu, Piracicaba, Campinas
distrito federal
mato grosso DO SUL
espírito santo
são paulo
paraná
• PARAÍBA: João Pessoa • Paraná: Araucária
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GRI/G4 – 15, DMA Compliance, EN 29, DMA Environmental complaint mechanisms and EN 34
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 63
Attention towards the environment and strict compliance with the legislation in force are a mark of projects developed by MRV. From planning phase and project definition to the conclusion of the works, the environmental issue plays an important role and it is also part of the requirements to suppliers. The
company does not formally adopt the precautionary principle, but it gives trends attention and it develops initiatives to mitigate the impacts of its operations on the natural resources and on the communities where it operates.
Green spaces Together with landscape designs developed at the projects and nearby areas, the recovery of parks and degraded areas is a highlight. MRV maintains 25 Permanent Preservation Areas (APPs) in nine cities in Rio de Janeiro, Minas Gerais and São Paulo where its projects are located, insuring the protection of local fauna and flora according to agreements signed with Environment Secretaries and City Halls. Besides that, it preserves and maintains several squares and parks in the cities that receive its projects.
To make sure there are more green areas, MRV works with annual targets for trees planted and, in 2013, it overpassed once again the rate it had set forth: during the year, 122.069 seedlings were planted in all regional offices, total superior to the 120 thousand foreseen. MRV has already overpassed the number of 350 thousand trees planted since 2011, when it set forth a specific control over that initiative.
Project sustainability Since conception, MRV’s projects are marked by sustainability and are mostly aimed at the preservation of natural resources, reduction of waste generation and better use of material and labor. During construction phase, apparently simple but very efficient measures are put into practice to mitigate impacts of the works on the environment. Thus, the use of solar heating for water used at
some sites – an initiative that was used in two projects in Porto Alegre (RS) in 2013; rainfall collection and reuse; the use of transparent tiles at the employees’ locker rooms and the alternative of “light bulbs” made of PET bottles and bleach are some of the examples of actions that reduce expenses on power and water. In 2013, about 3.1 million m³ of water were consu-
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 64
GRI/G4 - 14, DMA Energy, DMA Water and EN 13
med. Disbursements with water and sewage services totaled R$ 9.77 millions during the year. Measures to optimize water consumption are in progress. One of the actions is to reuse the water from concrete mixer washing. MRV uses a decantation process when washing the mixer: the waste is separated and correctly segregated and the resulting water can be used again. Water from cement bag washing is also reused. The total volume of water reused and recycled is around 1% of the total amount consumed. Together with conservation practices, MRV increased the use of the precast system to build units in its projects in 2013. The method, called concrete wall, secures significant gains once it decreases the volume of material used and the generation of debris and waste. Construction rhythm is optimized and mistake margins are lower. It also avoids breaking walls to install electricity and water ducts. As for the volume of debris, the reduction is of about 40% (from two to three debris containers generated in the construction of a standard apartment using the selfportant system comparing to 1.5 containers using the precast system). A project with 720 units started in March, 2013 in Guarulhos (SP) was concluded in 12 months. Using the traditional method, approximately 20 months would be necessary.In the finishing stage, the company works with low VOC (volatile organic compound) content paintings that present lower levels of gas and odor emissions, which contributes for the environment. The volatile part of aqueous paints consists of 98% of water and 2% of organic compounds. The housing units delivered to clients also count on devices to rationalize the use of natural resources, among them:
Individual water meters, which reduce by up to 50% monthly consumption in condominiums. Economic water flushes that use the dual flush system, with two consumption options (3 or 6 liters). Close coupled toilets are used, which saves up to 20 liters of water per flush, comparing to conventional models. Collection system for recyclable cooking oil in cylinders that are exchanged for cleaning material for the condominiums through a partnership with NGOs.
MRV – Specific Consumption of Electricity – Scope 2
800 665.6
712.8
600 MWh/unit produced
Environment
557.9
400 200 0 2013
2012
2011
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment GRI/G4- DMA Energy, EN 3, DMA Water, EN 8 and 10
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Material Consumption Quantity Item
Ump
2013
2012
T
67,816
67,260
Aluminium frames
Un
184,983
204,174
Sand
M³
546,509
555,263
Concrete and ceramic blocks
Un
54,267,378
60,199,685
Ceramic lining
M²
2,527,831
2,779,189
Cement
T
89,712
103,311
Concrete
M³
495,305
647,443
Wires and cables
M
24,151,554
25,983,014
Wood
M³
1,446,523
1.486,663
Hydraulic metals
Un
270,587
298,881
Stone + crushed stone
M³
539,317
441,194
Wood door
Un
313,461
324,188
Painting and varnish
L
2,926,972
2,833,443
Pvc pipes and connections
M
1,346,513
1,076,966
1,374,454,286
1,456,099,166
Steel
Total volume of purchases (R$) Un = unit; L = liter; M = meter; T = ton
Waste management and recycling MRV’s construction sites have waste management plans and develop actions for debris recycling. In addition to contributing to the environment by avoiding unnecessary discard of material in sanitary landfills, that management has direct impact on the reduction of operational costs due to the rationalization of raw material purchase. In 2013, over 57 thousand m3 of waste were recycled or reused in projects developed by MRV, which meant 39% of the total 146,165 m³ of waste generated. The volume recycled corresponds to 68.4 mil tons, enough material to fill 13,688 containers that would go to sanitary landfills. This work of debris separation and transport for specific recycling sites began three years ago and some projects registered last year, segregation indexes up to 90%, as some sites in Belo Horizonte and in the Northeast region. Also in 2013, the company established partnerships with several recycling cooperatives to donate material such as Styrofoam, plastic, cement bags, metal and glass that are commercialized by them.
In the western area of São Paulo state, for example, MRV developed partnerships with cooperatives in six cities, representing a source of additional income for local workers. Some materials such as dust, sand and pebble, for example, is recycled at the site – that is what is called the Cement Base Waste (RBC). After separation, the different materials are sent to a mill or grinder, which breaks up and mixes them to form an aggregate that can be reused as mortar screed or in other similar applications. The use and the later destination of wood coming from the works is another point of attention. At the end of the project, rests of wood in good conditions are transformed in basic furniture which is used at the construction site. Whatever cannot be reused is cut into chips and sent for power generation in ceramic, beverage, dairy product companies and laundries. A similar procedure is used for the gypsum produced at the construction sites. In that case, the material is sent to an overflow and screening area for separation and later use in the production process.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 66
GRI/G4 - DMA Materials and EN 1
67
MRV also works with the reverse logistics for hazardous waste and it has signed agreements with painting and texture industries, as it happens to cement (collection of bags), tile and floor manufacturers for packaging collection. At the same time, it started a partnership with Sebanella (RJ) to use gypsum waste to correct the PH rate of soils used for agriculture. In 2013, Prime Incorporações e Construções, a MRV subsidiary, did significant efforts regarding recycling and reuse work and achieved the reduction of about 18 thousand tons of waste at its construction sites, corresponding to 3,571 containers. The economy generated by those actions
exceeded R$ 400 thousand in 2013. Another initiative is the hygienization and cleaning of EPIs, which allowed for over 3,600 helmets, 1,800 pairs of boots and 1,500 uniforms to be reused. MRV keeps open channels with the community and its other stakeholders to receive complaints related to the impacts that its activities may have on the environment. People living in nearby areas and clients have access to the contact details (telephone number and e-mail address) of the engineer in charge of the construction site and they can also use the Talk to Us channel (www.mrv.com.br).
Absolute GHG emissions per scope – 2013* Scope
t CO2
t CH4
t NO2
T CO2e
Scope 1
8,606.3
0.9
2.5
9,378.7
Scope 2
2,778.,4
-
-
2,778.4
Scope 3
6,.942.8
50.9
0.4
8,340.7
*GHGs in this estimate are the ones regulated under the Kyoto Protocol: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulphur hexafluoride (SF6) and the families of hydrofluorocarbons (HFC) and perfluorocarbons (PFC), measured in the common unit of CO2 equivalent 2 (CO2e). Direct and indirect emissions are measured (Scopes 1, 2 and 3). Information has not been checked by a third party.
Greenhouse Gas (GHG) emission control MRV has been carrying out the inventory of its Greenhouse Gas (GHG) Emissions for four years now, a practice that reinforces its commitment to sustainable operation and meets the five principles of the GHG Protocol Corporate Standard, that is, accuracy, completion, consistency, transparency and relevance. The company works to improve the quality of results determined year after year so as to make results more complete and accurate, opening room for the identification of opportunities to reduce the emissions of GHG.
The emission survey encompasses the sources in scopes 1, 2 and 3, the last one being related to indirect emissions. To define the organizational limits of the inventory, the company is to choose one of the approaches presented by the GHG Protocol (WRI/WBCSD): Shareholding and Control (operational or financial). MRV chose the financial control approach once it finds it the most appropriate one for its activities and asset management structure. According to that approach, all the assets owned by MRV Engenharia are allocated in Scope 1.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 68
GRI/G4 - DMA Effluents and solid waste, DMA mechanisms of environmental complaint, EN 34 and DMA mechanisms of complaints about impacts on society
Most of emissions in MRV’s Scope 1 in 2013 are due to fuel consumption in vehicles, mobile equipment, stores, offices and construction sites. During the year, direct emissions increased by 36% mainly due to the use of B5 diesel in off-road vehicles and equipment at MRV, MRL, Prime and LOG’s construction sites. Those variations may be justified by some factors such as the acquisition of new equipment, increased number of housing units built by the MRV Group, scopes relocation and the update of conversion factors. Emissions in scope 2, characterized by the purchase of power from the network, varied by 50% com-
paring to 2012. However, in 2013 the use of power by MRV Group had little variation. That variation was justified by the 47% increase to the national grid emission factor due to the greater use of thermoelectric to compensate the reduction to the hydroelectric generation in 2013. Scope 3, represented by emissions generated by waste treatment, air trips, freights and other activities over which MRV has no control, underwent a reduction by 15% comparing to 2012 and justified by an apparent reduction to freight activities and the use of taxis.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment GRI/ G4 - EN 15, 16, 17 e 30
69
ny has several projects. MRV repaved urban streets, built a sewage station (ETE) with a capacity for 5.5 l/s and it also implemented a nursery that is able to produce 35 thousand seeds per year, increasing the city’s reforestation capacity. The works were worth over R$ 2 millions.
Compensations and city improvements More than building residential units with suitable quality and price that meet expectations and delight clients, MRV contributes for the development of the infrastructure and the quality of life of the families that have the opportunity to live in one of the company’s projects. On that purpose, through compensations or its own initiative, it invests in street paving, construction of schools and basic health units, in addition to landscape works such as squares, parks and gardens, and also in basic sanitation and sewage stations. That work also contributes to recover socially degraded areas located mainly in the outskirts of the cities. In Contagem, Belo Horizonte Metropolitan Region, the company did a big change in the district, recovering an area close to one of its projects by building sidewalks, protecting slopes, regenerating the water source and revegetating the land. It also implemented living areas with a jogging lane, gym and playground – it transferred the existing soccer field and recovered a square and a stream. In another area located near another project in Vespasiano, also in the Great Belo Horizonte region, it recovered street asphalt, built sidewalks and created a game playing area. It also recovered a square by in-
stalling urban furniture and landscaping. In 2013, R$ 93 million were used in urbanization projects in different cities in the country, totaling over R$ 268 million in the last three years. In Campinas (SP), for example, over R$ 25 million were invested in the city and its metropolitan area. The same amount was invested in Ribeirão Preto (SP). Among the works carried out, we can highlight: Construction of the Manchester well, responsible for water intake and supply to over 10 thousand people living in Bauru (SP). The company invested R$ 1.5 million in the works that benefitted people living in five districts in the city. The well was a counterpart for the construction of two projects in the city. Renovation and enlargement of the Professora Edul Rangel Rabelo Avenue, considered the main street that crosses three districts in Ribeirão Preto (SP). MRV paved and enlarged the street, implemented the landscaping and a bike lane, and built two stretches for connection to a shopping mall in the area. Investment of R$ 4.5 million. Execution of street, basic sanitation and environmental works in Americana (SP), where the compa-
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 70
GRI/ G4 - DMA indirect economic impacts, EC 7, 8, DMA Local communities and SO 1
Renovation of the João Monteiro da Franca Square, in João Pessoa (PB), known as the Drivers’ Square. The recovery was the result of an agreement between MRV and the City Hall and it involved the installation of new pavement, new benches, enlargement of the green area and installation of equipment for physical activity. The investment reached R$ 70 thousand.
Citizenship With initiatives to support and help especially children and elderly in need, MRV invests in the communities where it operates to improve the life quality of those people. In Belo Horizonte, where it headquarters are located, the company supports since 2009 the Cidade dos Meninos São Vicente de Paulo (Divine Providence Association for the Human Promotion), an institution that supports over five thousand youngster in need. With donations corresponding to one
minimum wage monthly for each one of the 200 youngster it sponsors and the maintenance of the buildings where they live, the company contributes for those teenagers to have a profession in the future and to become citizens. In addition to that, MRV organizes and incentives solidarity movements aimed at the Project and that involve its employees, mainly in special dates such as Children’s Day and Christmas.
Corporative Governance | Reponsible Construction | Relations With Clients | People | Trust and partnership | Environmental Commitment GRI/ GRI/ G4 - EC 7 e SO 1
71
Main actions developed in 2013 Sponsorship for the new building for “Espaço Criança Esperança” main officeone of the largest slums in Belo Horizonte (MG). Together with the Union for the Heavy Construction Industry of the State of Minas Gerais (Sicepot) and Codeme Engenharia, MRV is going to donate resources for the new facilities that include a 5 floors building with dance, music, arts and culture workshops, auditorium and places for psychosocial assistance and library. The sport court and the swimming pool will also be remodelled. The building, with an area of over 1,800 square meters and conclusion due to the end of 2015, is improving conditions for over 700 children and teenagers assisted by the Criança Esperança Project in the capital city of Minas Gerais. Renewal of the sponsorship granted to Minas pela Paz Institute, an organization created in 2007 in an initiative of the Federation of Industries of Minas Gerais (Fiemg) and of the largest companies in the State. The Minas pela Paz objective is to help government combat violence and reduce the criminality in the state. The institution outstands for preparing, proposing and implementing feasible solutions focused on public safety. Coat campaign among employees in 95 cities in the country to celebrate one million fans in Facebook in May, 2013. In Belo Horizonte, the
Contributions and donations 2013 – (R$ thousand) São José Shelter for Elderly People in the Divine Providence System, for example, received about 100 items of clothing and blankets. Celebration of the Children’s Day in Lauro de Freitas (BA), with the mobilization of employees at the company’s construction sites. Toys collected during a solidarity action were donated to 50 children at Sister Sheila Child Care in the district of Itinga. Participation in the Post Office’s Santa Klaus campaign. As it has happened in the last 10 years, employees in Belo Horizonte are invited to fulfill children’s dreams that come through letters to Santa Klaus sent to the Post Office through a campaign. A total of 107 children in UMEI Águas Claras School received presents brought by the employees themselves. Solidary initiative in Lauro de Freitas and Camaçari, in Bahia, by selling part of the ferrous scrap metal from five construction sites in the two cities to a local cooperative. Work teams suggested that the amount received was donated to the Adolfo Bezerra de Menezes Charity Association, a shelter for elderly people located beside one of the projects, in Lauro de Freitas. The resources were used to buy goods such as adult diapers, glucose meters and food. Donation, as a counterpart, of two plots of land to Suzano City Hall (SP). Schools and health units are going to be built there.
Corporative Governance | Reponsible Construction | Client Relations | People | Trust and partnership | Socialenvironmental Commitment 72
Associação de Promoção Humana Divina Providência
Social Investment (R$ millions)
1,394
Instituto Empreender Endeavor Brasil
75
Instituto Atlântico
60
Instituto Minas pela Paz
20
R$ millions
2013
2012
2011
Education
0.2
6.8
11.9
-
4.7
3.2
Urbanization
80.0
83.0
49.3
Environment
13.1
2.8
1.1
Total
93.3
97.3
65.5
Health
Sport support Following its strategy of investing in the Brazilian sport, MRV maintained its Marketing actions in 2013 with the renewal of the sponsorship given for the third consecutive year to Clube Atlético Mineiro, first-time Champion of the Libertadores da América Cup. The company understands that linking its brand to soccer is an efficient tool to get closer to its consumer market and, for that reason, it also supported other well known teams in the areas where it operates such as Rio Branco Atlético Clube, from Espírito Santo, and Goytacaz Futebol Clube, in the city of Campos dos Goytacazes, in Rio de Janeiro.
In case of soccer teams, resources brought by the company are directed to the main teams but they are also important reinforcement for the base categories that usually work with children and youngsters from low income families, which ensures the social reach of the initiative. Also in 2013, MRV sponsored tennis players from Minas Gerais, Bruno Soares and André Sá – also sponsored by BMG bank – they have won several international titles along their careers.
Corporative Governance | Reponsible Construction | Relations With Clients | People | Trust and partnership | Environmental Commitment GRI/ GRI/ G4 - DMA General and EN 31
73
Financial performance Despite the instability of national and international economic scenarios that affected the performance of the real estate sector in 2013, MRV presented solid financial results, which confirms its strategy to operate with focus, excellence and scale in the segment of low income real estate. That area presents strong demand and it is on the list of priorities of the Brazilian government.
Attachments In 2013, the net operational income was R$ 3.87 billion, 2% above the R$ 3.80 billion determined in 2012. EBITDA was R$ 643 million (margin of 16.6%), comparing to R$ 787 million (margin of 19%) in the previous year. The consolidated net profit reached R$ 423 million, less than the R$ 528 million determined in 2012.
Total tax paid in the country (R$ million) INSS employer, Cofins, ISSQN, IRPJ/CSLL, PIS, management rate, ICMS and others
Indebtedness rate (net debt/net assets)
404.0 30.4%
40.7%
38.8%
2012
2011
Awards and Recognitions in 2013 1st place in the ITC 2013 Ranking - The 100 largest companies in Construction, category Record keeper; also won in the category Low Income Residential
For the third year and second consecutive time, best performance in volume of square meters built. Granted by Inteligência Empresarial da Construção – ITC magazine
XV Labor Safety Award: Company Highlight in Living Area
Highlight Company in Living Areas and one of the five best averages in the category “Preventionist Company”. Granted by Sinduscon-MG.
“Melhores e Maiores”
Brazilian company that increased sales the more in the last five years, according to classification issued by Exame magazine, Abril publisher
XV Business Performance Minas Award – Categories: Expression and Excellence
Mercado Comum magazine
Top of Mind: 15 awards as the brand most remembered by consumers in several categories.
Categories: Top Of Mind National/ IPESO Survey Institute (involving the 12 largest capital cities in the country); São Paulo – Top of Mind for construction companies in the state of São Paulo / IPESO Survey Institute; Espírito Santo – Icon Brands Award, real estate construction company segment.
312.9 265.0
2013
2013
2012
Bahia – ADEMI’s Real Estate Exhibition – Construction company that sold more apartments during the Real Estate Exhibition São José dos Campos, Jacareí and Taubaté / SP – most remembered brand – Top Vale 2013
2011
Brands with the most prestige in Minas Gerais.
Dividends paid (R$ million )
Leader in the category “Construction Companies and Real Estate”, according to a selection carried out by Jornal Estado de Minas.
180.5
74
140.7
125.3
2013
2012
2011
GRI/ G4 DMA Financial Performance and EC 1
75
Summary GRI
Glossary
PROFILE INDICATORS
STANDARD DISCLOSURES
Outside Verification
Strategy and analysis
Permanent Preservation Areas (APPs) – Created by the Brazilian Forest Code (Law 4.771 dated 1965 and later changes), they consist in legally protected, environmentally fragile and vulnerable areas that may be public or private, urban or rural, covered or not by native vegetation. In urban areas, the maintenance of APPs values nature and constructions, securing better quality of life for communities. Subfloor – A layer of about 3 centimeters usually consisting in cement and sand that levels the floor before lining is applied. EBITDA – Acronym for Earnings Before Interests, Taxes, Depreciation and Amortization. Free float – It refers to a company’s shares available for negotiation in the marketplace, excluding the shares owned by major shareholders and treasury shares. Certificate of Occupancy – Authorization issued by City Halls that allow for the effective use of buildings. The document proves that the construction of a project or real estate followed the requirements of the local legislation. While the beginning of a construction is authorized by a construction permit, the certificate of occupancy certifies its conclusion according to the initial permit. Reverse logistics – One of the concepts of the Na-
tional Policy for Solid Waste. It is characterized by a set of actions, procedures and means to make possible that solid waste is collected and later returned to the business sector for reuse within its cycle or other productive cycles, or another destination. Novo Mercado – Launched in 2000 by Bovespa, Novo Mercado established a highly differentiated standard for corporate governance and became a reference for the transparency required by investors. The companies listed also adopt a set of corporate rules that increase the rights of their shareholders, in addition to a more encompassing policy for information disclosure. In Novo Mercado, the companies can only issue voting shares, the so called ordinary shares (ON). Selfportant system – Construction technique in which the walls are able to bear the weight of the construction with no need for pillars or beams. The walls are precasted with the use of molds before they are put in place. That allows for the reduction of the execution time and the final cost of the construction.
G4-1 Statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability.
15
G4-2 Description of key impacts, risks and opportunities.
15
No
G4-3 Name of the organization.
6
No
G4-4 Primary brands, products and/or services.
6
No
6
No
6,12 and 13
No
G4-5 Location of organization headquarters. G4-6 Number of countries where the organization operates and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report. G4-7 Nature of ownership and legal form. G4-8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).
6 6,12 and 13
No
G4-9 Report the scale of the organization including: total number of employees; total number of operations; net sales (for private sector organizations) or net revenues for public sector organizations; total capitalization broken down in terms of debt and equity (for private sector organizations); quantity of products and services provided.
14
No
G4-10 Total number of employees by employment contract and gender; total number of permanent employees by employment type and gender; total workforce by employees and supervised workers and by gender; total workforce by region and gender; report whether a substantial portion of the organizations work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employment of contractors; report any significant variations in employment numbers.
42
G4-11 Percentage of total employees covered by collective bargaining agreements. G4-12 Describe the organization’s supply chain. G4-13 Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain, including: changes in the location of, or changes in operations, including facility openings, closings and expansions; changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations); changes in the location of suppliers, the structure of the supply chain or in relationships with suppliers, including selection and termination.
No
100%
No
57
No
The recorded changes are related to the routine of competitions, without significant changes.
No
No
G4-17 Entities included in the organization’s consolidated financial statements or equivalent documents. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.
5
No
G4-18 Process for defining the report content and Aspect Boundaries, how the organization has implemented the Reporting Principles for Defining Report Content.
17
No
G4-19 List all the material aspects identified in the process for defining report content.
17
No
G4-20 For each material Aspect, report the Aspect Boundary within the organization, as follows: report whether the Aspect is material within the organization; if the aspect is not material for all entities within the organization (as described in G4-17), select one of the following two approaches and report either: the entities or groups of entities in G4-17 or which the aspect is not material or the list of entities or groups of entities included in G4-17 for which the aspect is material. Report any specific limitation regarding the Aspect Boundary within the organization.
17
No
G4-21 For each material Aspect, report the Aspect Boundary outside the organization, as follows: report whether the Aspect is material outside the organization; if the Aspect is material outside the organization, select the entities, groups of entities or elements for which the Aspect is material. Also, describe the geographical location where the Aspect is relevant to the entities identified. Report any specific limitation related to the Boundary Aspect outside the organization.
17
No
G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.
Changes in No information and data provided in previous editions are explained throughout the report, in footnotes or in the text itself.
G4-23 Significant changes from previous reporting periods in the Scope and Aspect Boundaries.
Não houve em No 2013
Stakeholders Engagement
Commitments to external iniciatives G4-14 Report whether and how the precautionary approach or principle is addressed by the organization.
56
Identified material aspects and boundaries
Organizacional profile
G4-15 Cartas, princípios ou outras iniciativas desenvolvidas externamente de caráter econômico, ambiental e social que a organização subscreve ou endossa.
76
No
G4-16 Membership of associations and national or international advocacy organizations in which the organization: holds a position on the governance body; participates in projects or committees; provides substantive funding beyond routine membership dues; views membership as strategic.
64
No
59 and 62
No
G4-24 Lists stakeholder groups engaged in the organization
16
No
G4-25 Basis for identification and selection of stakeholders with whom to engage
16
No
G4-26 Abordagem adotada pela organização para envolver os stakeholders, inclusive a frequência do seu engajamento, discriminada por tipo e grupo, com uma indicação de que algum engajamento foi especificamente promovido como parte do processo de preparação do relatório.
16
No
77
Summary GRI
CATEGORY: ENVIRONMENTAL
PROFILE INDICATORS
Material Aspect G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.
17
No
G4-38 Composition of the highest governance body and its committees
Report Profile G4-28 Reporting period (such as fiscal or calendar year) for information provided. G4-29 Date of most recent previous report (if any).
5 2012
G4-30 Reporting cycle (such as annual, biennial) G4-31 Contact point for questions regarding the report or its contents.
No No
Anual
No
Attachments
No
Essencial
G4-39 Report whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the organization’s management and the reasons for this arrangement).
22
No
G4-42 Report the highest governance body’s and senior executives´ roles in the development, approval and updating of the organization’s purpose, value or mission statements, strategies, policies and goals related to economic, environmental and social impacts.
21
No
No
G4-47 Frequency of the highest governance body’s review of economic, environmental and social impacts, risks and opportunities.
20 and 21
G4-49 Process for communicating critical concerns to the highest governance body.
20 and 21
G4-50 Nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them.
Verification G4-33 Policy and current practice with regard to seeking external assurance for the report.
5
G4-35 Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees.
21
21
Material
No
Omissions
External Verification
DMA
66
No
66
No
DMA
64
No
G4-EN3 Energy consumption within the organization.
65
No
DMA
64
No
G4-EN8 Total water withdrawal by source
65
No
G4-EN10 Percentage and total volume of recycled and reused water.
65
No
DMA
68
No
There was no spills in 2013
No
Water
G4-EN24 Total number and volume of significant spills.
SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK Material Aspect
21
Management Approach and Indicators
No No
G4-56 Values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.
24
No
G4-58 Internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.
24
No
employment
TRAINING AND EDUCATION
Equal Remuneration for Men and Women
Labor Practices Complaint Mechanisms
No
Page/Reference
G4-EN1 Materials used by weight or volume.
Energy
No
Ethics and Integrity
No
Governance G4-34 Governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.
No
Effluents and waste
Report Profile G4-32 Report the “in accordance option the organization has chosen. Report the GRI Content Index for the chosen option. Report the reference but it is not a requirement to be “in accordance” with the Guidelines.
20 and 22
Management Approach and Indicators
Page/Reference
Omissions
External Verification
DMA
42
No
G4-LA 2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation.
53
No
DMA
51
No
G4-LA 9 Average hours of training per year per employee by gender, and by employee category.
51
No
DMA
42
No
G4-LA 13 Ratio of basic salary and remuneration of 42 women to men by employee category, by significant locations of operation.
No
DMA
24
No
G4-LA16 Number of formal complaints filed, processed and resolved through the mechanism of labor practices complaints.
47
No
SUB-CATEGORY: HUMAN RIGHTS Material Aspect
Management Approach and Indicators DMA
Freedom of Association and Collective Bargaining
PERFORMANCE INDICATOR
G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk and measures taken to support these rights.
Page/Reference
Omissions
External Verification
58
No
There was no operations identified in 2013
No
58
No
There was no operations identified in 2013
No
ECONOMIC CATEGORY Material Aspect Economic Performance
Management Approach and Indicators DMA
78
Omissions
No
14 and 74
No
70
No
G4-EC7 Development and impact of investments in infrastructure and services provided.
70 and 71
No
G4- EC 8 Significant indirect economic impacts, including the extent of impacts.
70
No
G4-EC1 Direct economic value generated and distributed
DMA
External Verification
14 and 74
DMA Indirect Economic Impacts
Page/Reference
Child labor
G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.
79
Summary GRI
PROFILE INDICATORS Material Aspect
PROFILE INDICATORS Management Approach and Indicators DMA
Page/Reference
Omissions
58
External Verification No
Forced or compulsory G4-HR6 Operations and suppliers identified as having 58 significant risk for incidents of forced or compulsory labor labor and measures to contribute to the elimination of all forms of forced or compulsory labor.
No
Management Approach and Indicators DMA
Local Communities
Page/Reference
GENERAL
Environmental Grievance Mechanisms
SOCIAL CATEGORY: Society Material Aspect
Material Aspect
Omissions
External Verification
70
G4-SO1 Percentage of operations with implemented 70 and 71 local community engagement, impact assessments and development programs.
Occupational Health And Safety
SOCIAL CATEGORY: Product Responsibility Material Aspect LABELING OF PRODUCTS AND SERVICES
CUSTOMER PRIVACY
Management Approach and Indicators DMA
Omissions
37
External Verification
38
No
DMA
37
No
There was no reported cases in 2013
No
37
No
There was no reported cases in 2013
No
G4 – PR 8 Complaints regarding customer privacy violation.
G4-PR 9 Fines for non-compliance concerning the provision and use of products and service.
Compliance
Management Approach and Indicators DMA
Market Presence
Biodiversity
Omissions
External Verification
42
No
42
No
20 and 21
No
57
No
G4-EC9 Proportion of spending on local suppliers at 57 significant locations of operation.
No
G4-EC 5 Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation. G4- EC 6 Proportion of senior management hired from the local community at significant locations of operation.
Procurement Practices
Page/Reference
DMA
DMA
62
G4-EN 13 Habitats protected or restored.
64
No
69
No
G4-EN 16 Energy indirect greenhouse gas (ghg) emissions (scope 2).
69
No
G4-EN 17 Other indirect greenhouse gas (ghg) emissions (scope 3).
69
No
G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations.
62
No
compliance
G4-EN 30 Significant environmental impacts of transporting products and other goods and materials for the organization’s operations, and transporting members of the workforce.
69
No
TRANSPORT
80
External Verification
73
No
73
No
DMA
62 and 68
No
G4-EN 34 Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms.
62 and 68
No
DMA
44, 46 and 47
No
G4-LA5 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety program.s
100% of the employees are represented
No
G4-LA 6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender.
47 and 48
No
68
No
There were no complaints in 2013
No
24
No
G4-HR 12 Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms.
G4-SO3 Total number and percentage of operations There was no in assessed for risks related to corruption and the 2013 significant risks identified.
No
G4-SO 5Confirmed incidents of corruption and actions taken.
There was no in 2013
No
G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.
There was no in 2013
No
68
No
There was no in 2013
No
DMA G4-SO11 Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms .
No
G4-EN 15 Direct greenhouse gas (ghg) emissions (scope 1). Emissions, Effluents And Waste
Complaint Mechanisms referring to Impacts on Society
Omissions
DMA
DMA
Anti-corruption
OTHER INDICATORS REPORTED THAT WERE HIGH IN CONSIDERED MATERIALITY Material Aspect
Human Rights Complaint Mechanisms
Page/Reference
G4-EN 31 Total environmental protection expenditures and investments by type.
DMA
No
G4 -PR 5 Results of surveys measuring customer satisfaction .
DMA COMPLIANCE
Page/Reference
Management Approach and Indicators
81
Technical File Realization – Board of Institutional Relations / MRV Engenharia Technical coordination – Sérgio Lavarini and Simone Maia Execution – BH Press Comunicação Graphic design – Movida Comunicação Photography – Gláucia Rodrigues/Luciano Barelli/ MRV files For specific and complementary information, go to www.mrv.com.br through the Board of Institutional Relations, Sérgio Lavarini, e-mail comunicação@mrv.com.br/ (31) 3348-7100
82
83
Av. Mário Werneck, 621 Estoril – Belo Horizonte, MG, Brasil CEP: 30.455-610 Tel : +55 31 3615-8150 Belo Horizonte/MG Tel.: (31) 3348-7100 84 www.mrv.com.br