Sebrae livro by Desformatados Comunicação

Responsible management, stimulating local development and sustainability are in public managersâ&#x20AC;&#x2122; agendas and are essential factors for companiesâ&#x20AC;&#x2122; competitive edge. This practical guide was developed for public managers, small business entrepreneurs and civil society, and contributes with information regarding main national public policies, demands and opportunities created, besides presenting

This moment requires innovative pathways and partnerships between the public and private sectors, in order to inaugurate a new paradigm in economic development with a balance that the sustainability concepts require.

www.sustentabilidade.sebrae.com.br

PRACTICAL

GUIDE TO

Sustainability IN SMALL BUSINESS

execution

support

Fundo Multilateral de Investimento Membro do Grupo BID

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Practical Guide to Sustainability in Small Business

national and international success cases.

Tools for territorial development and fostering of innovative and sustainable business

2/12/14 2:04 PM

Practical Guide to Sustainability in Small Business: Tools for territorial development and fostering of innovative and sustainable business / Centro Sebrae de Sustentabilidade, Sebrae em Mato Grosso & Sebrae em Mato Grosso do Sul â&#x20AC;&#x201C; CuiabĂĄ: Sebrae/MT, 2014. 128 p. il. ISBN 978-85-7361-054-3 1. Sustainability. 2. Waste management. 3. Small business. 4. Biodiversity. 5. Recycling. 6. Cities government. 7. Public policies. 8. Head. CDU: 502.131.1

Practical Guide to Sustainability in Small Business Tools for territorial development and fostering of innovative and sustainable business

Presentation Many of us grew up hearing that phrase: Brazil is the country of the future. It was – now the future is here and Brazil has become the country of the present. Our beloved nation grows before others eyes, attracting investments from the entire world. Today we are able to say that most of the Brazilian population has access to enough goods and services to make up for their needs, and that the Brazilian population has started to include, in their basic consumer list, items such as electronics and tourism packages. As Brazil, other countries that were classified as “underdeveloped”, such as China, are becoming powerful in what regards to the consumer markets. Despite their size, individual entrepreneurs, rural producers and micro and small companies are giants when we analyze their importance to the Brazilian economic growth. They represent 99% of the country’s companies, in quantity, signifying approximately one fourth of our GDP. They are the ones that assure jobs to around 60% of Brazilians with formal employment. Our population continues growing, at the same time as purchasing power increases. This means that, increasingly, more people are consuming more. For the business owner, this is a scenario of promising opportunities. We cannot forget that the more people buy products and services, the more we pressure nature. Everything we consume comes from nature, be it in form of water, energy, ores, vegetal or animal inputs and others. In parallel, the greater the consuming…more waste. Today, we know that the

volume of garbage produced in Brazil grows faster than the population. It is no news: it is in schools, newspapers and movies. Everyone is noticing that it is simply impossible to keep on growing without changing our way to do business. It is no coincidence that the socalled “sustainability” has become a vogue, because we really need to do business keeping in mind that natural sources in our planet are finite. With a series of new laws and programs, the Brazilian Government is keeping up with the shifting trends. The National Policy for Solid Waste and the National Policy for the Environment, for example, were created as a response to such challenges. As a whole, these laws establish new paradigms in the way of handling sustainability related topics. At first site, this may look like it creates more restrictions, more bureaucracy for the creation of new business or for the promotion of economic development in a municipality, but it is not the case. Let’s do an exercise: let’s change our viewing glasses and look at the cup half full. By studying the laws that regulate the impacts over the environment and the usage of ecosystems, we will see a series of opportunities that are yet to be seized, mostly due to lack of knowledge. It is by keeping this in mind that the content of this booklet was based on. Whether you are an entrepreneur or a public manager, you will find clarifications, tips and concrete examples on how to look at the Brazilian biodiversity – even in relation to garbage! – as incredible business and sustainable growth opportunities.

MUNICIPAL MANAGEMENT purchasing power of the city might promote and strength the inner city market

NATIONAL SOLID WASTE POLICY

greater knowledge regarding the municipalityâ&#x20AC;&#x2122;s needs for contracting

NATIONAL BIODIVERSITY POLICY

entrepreneurs can create solutions with positive impacts for the whole society

MICRO AND SMALL BUSINESSES

BUSINESS OPPORTUNITIES

LOCAL DEVELOPMENT

SUSTAINABLE MODEL

Chapter 1 focuses on contextualizing laws and normative acts that mark out the addressed topics, besides identifying the strategic role of micro and small businesses in local development in partnership with the public authorities. Chapter 2 points out the importance of long-term planning in The General Law for Micro and Small Communicipal management, besides bringing clarificapanies foresees the ease of market access, includtions about available instruments for the creation ing in relation to the option in the acquisition of of partnerships between municipalities and busigoods and services by public authorities. In pracness owners. tice, this orientation stimulates the partnership beTwo big sustainability-related themes are tween small businesses and municipalities. If adeaddressed in Chapter 3: waste management and quately used, the municipality’s purchasing power biodiversity are discussed from the perspective of strengthens the city’s internal market. By focusing business opportunities and innovation. Concrete municipal budgets on purchases within the city, a breaking ground cases that are already reaping revirtuous cycle of local development is created: more sults from the innovative initiatives are presented as profitable local companies, jobs, taxes, public revesources of inspiration and reference. nue that may be reverted back into improvement of Chapter 4 organizes a series of practical refsocial services in the community. erences in order for you to apply to your municiAt the same time, if entrepreneurs have more pality’s or business’s reality. Guidelines relevant to knowledge of the municipality’s needs, they will be saving economic resources, environmental licensable to offer more appropriate products and sering and obtaining of certifications are some of a few vices to the law’s demands and recommendations, topics addressed. You will also find tools to evaluate increasing their chances of being selected. Moreyour business, rethink your strategies or even start over, the entrepreneur with innovative vision may an idea from scratch. We also address the topic of offer products and services that are in tune with communication and social control, discussing how the world trends regarding sustainability, looking these new values and practices may be communitowards the rational use of resources, the adequate cated, improving costumer relationship, relationhandling of raw materials, care in hiring of suppliship with suppliers and with society as a whole. ers and even in relations with staff and employees. This document is the fruit of a partnership When the municipality chooses to hire prodbetween Sebrae’s Sustainability Centre (CSS) and ucts or services that care for the environment and Sebrae – MS. Here you will find illustrative graphs for sustainable development of its city, it is genthat facilitate the understanding of the concepts erating benefits that go beyond commercial relapresented, as well as tips, current data and completions, assuring quality of life for future generations. mentary texts on the specific subjects. We also indiWhen an entrepreneur finds profitable cate some Internet links. ways of resolving environmental probSustainability is in the public lems or using biodiversity resources, he managers agenda and has become an is creating solutions that have positive item of competition for companies. Enimpacts on society. vironmental factor can no longer be set None of this happens without aside from economic growth and, inaccess to knowledge. This incentive to creasingly, municipalities are gaining partnerships between the municipal autonomy regarding promoting ecoIf you are reading public power and small local businesses nomic growth on a local level. It is time a printed version is new both to the entrepreneurs and to to open ways for partnerships between of this booklet, the public managers. Throughout this public and private sectors, by uniting a practical way to access the booklet, a series of tips and opportuniefforts in creating new development online content is ties to facilitate this alliance and to creparadigms. This publication contributes by the QR Codes. ate success partnerships are presented. with useful information in this regard, You just need to Besides the explanations in regards to but it is you, entrepreneur, that must put install a QR code reader app in main legislations, you will find data on them into practice, turning your busiyour smartphone. trends and news on this field, along with ness more competitive at the same time There are many a series of concrete stories that illustrate as collaborating to a more healthy, clean, free options at how these ideas translate in practice. harmonious and sustainable world. the app stores.

MICRO AND SMALL BUSINESSES AND LOCAL SUSTAINABLE DEVELOPMENT

1 2

National Strategies, Local Actions 12

1.1

The role of small businesses on local economic growth

1.2

National policies and local business opportunities

Sustainable Municipal Management and Support of Small Businesses Development 28

2.1

Long-term management: strategic and territorial planning

2.2

Small business participation in services rendered to municipalities: how to stimulate this partnership

3 4

Micro and Small Companies and Sustainable and Innovative Business Opportunities

3.1

Business opportunities in the waste management chain

3.2

Biodiversity and businesses: life as raw material

3.3

Financing: attracting investments to your business

Practical Application 96

4.1

Pause for reflection: is public management in my city sustainable?

4.2

Identifying opportunities: how to create an innovative business

102

4.3

Guide to the sustainable entrepreneur: does your business respect the environment?

111

CLÁUDIO GEORGE MENDONÇA

MARISTELA DE OLIVEIRA FRANÇA

Much has been said about sustainability and about the urgent need for commitment from everyone in the planet . Environmental specialists and a wide range of professionals are seeking solutions for the disposal of solid waste, for example, or simply discussing what would be best for this or that country. But what are the countries, through their governments, really doing to transform discussions into concrete actions? Bringing this issue to Brazil: how are states and municipalities allocating their solid waste? And what are the responsibilities of each of us in all this? Everyone knows that caring for the planet is an individual act, but public policies are necessary to discipline ways to keep the environment alive for the future. What’s more: these policies should include alternatives for generation of income and for improvement of communities’ quality of life. Henceforth, Sebrae edited the second version of this booklet on sustainability, bringing qualified information on business opportunities arising from solid waste, always focusing on territorial development. It is a pragmatic vision of what can be created, in municipalities, from raw materials which, at first glance, would appear to be garbage.

The discussion is no longer about the concept of sustainability or about where to act, the challenge now posed is how to act in a systematic and integrated manner, converging the public and private sectors, institutions and civil society towards the planet’s sustainability. The Sebrae System has acted alongside and organized to promote a favorable environment for small businesses across the country. In this context, it has been building, with governments and especially municipalities, structured actions for the promotion of territorial development in an orderly fashion. Thus, the alignment and implementation of public policies in the three spheres - federal, state and local - has been the biggest challenge. Having the General Law as a basis, other initiatives are being implemented through national programs, such as the Sebraetec and ALI program, which have contributed significantly so that small businesses participate in situations where the agenda is sustainability.

Superintendent Officer. Sebrae Mato Grosso do Sul.

Sebrae has provided information, knowledge, and promoted access to innovations and new technologies to small Brazilian businesses. The ultimate goal is that existing and new businesses can be properly structured, causing entrepreneurs and potential entrepreneurs to think of sustainability beyond their company, extending their vision and their position for the development of the neighborhood, city environment, state and country. The booklet that is in your hands brings a lot of information relevant to the subject, highlighting the entire legal framework and bringing forth opportunities for innovative and sustainable business, revealing sustainability as an opportunity to generate new business. Operations Officer. SebraeMato Grosso do Sul.

JOSÉ GUILHERME BARBOSA RIBEIRO

LEIDE GARCIA NOVAES KATAYAMA

ISMAEL GÍLIO

It is of vital importance that public managers focus their attention on the imminent reality of sustainability and confront this paradigm as a great opportunity for growth and for local development. A number of requirements and criteria established by the General Accounting Offices/Court calls upon the government to hold joint efforts with businesses, creating the need to recast the old ideal of competitiveness. The General Law of Micro and Small Companies and the National Policy for Solid Waste are practical examples that this reality is emergent and non-extendable. As of the establishment of a favorable scenario, we become able to diversify partnerships and strengthen small businesses, seizing on this noble task and working for a fair, competitive environment strengthened by sustainability.

Sustainability refers primarily to the generation of networks and partnerships. These, in turn, must be composed by individuals that are aware of their importance in the process of building a sustainable and competitive environment. This booklet is a contribution so that everyone involved – public authority, small business and civil society – becomes aware of their possibilities, takes action and starts their own path in the global quest for sustainable development.

The issue of sustainability has reached a dimension beyond environmental compliance and economic feasibility, duly including the social purpose . Micro and small companies, for their potential to scale and presence in any socioeconomic context, acquire special relevance due to their ability to allow applicability on a global scale, of new technologies – simple and standardized, but effective – in an innovative environment in regards to products and services, processes, and business management. Without the contribution of small businesses, the green economy we desire will always be incomplete.

Officer. Sebrae Mato Grosso.

Senior Sector Specialist. Multilateral Investment Fund of the Inter-American Development Bank (MIF/IDB)

Superintendent Officer. Sebrae Mato Grosso.

National strategies, local actions

1.1 The role of small businesses on local economic growth 1.1

The importance of small companies for local economy is undeniable: the closer the public manager gets to the entrepreneur, the more the community, the municipalities and the country will develop in a sustainable manner

Micro and small companies have a fundamental role in the development of Brazilian cities and, consequently, in Brazilâ&#x20AC;&#x2122;s development. It is by means of local development that a country grows on a national scale. These small initiatives may and must be linked to public needs and to the incentives resulting from such needs: only then the small enterprise, the city and the country grow in a safe, healthy and permanent manner. A municipality that has a large variety of small businesses will most likely also have abundance of goods, services, jobs and leisure, to mention a tiny portion of the benefits observed in a city with a strong local economic activity. Such strength increasingly requires the adoption of new initiatives that promote entrepreneurship. Within such context, the General Law for Micro and Small Companies represents the consolidation of an instrument that aims at facilitating entrepreneursâ&#x20AC;&#x2122; lifes, setting forth adequate conditions for the creation and prosper future of their businesses. The General Law guaranteed important improvements in the sector, such as the decrease in debureaucratization, simplification and tax relieves, amongst other differentiated treatments. The entrepreneur must be capable of identifying opportunities and transforming them into profitable business. Many times, this means developing a simple, cheap and creative idea which will evolve sustainably as partners, suppliers and investors appear along the way. In Brazil, from each that entrepreneur arises from necessity, 2.1 others arise from opportunity.

GOOD TO KNOW During the worldwide financial crisis of 2008, micro and small companies created 450 thousand jobs, while medium and large companies expunged 150 thousand jobs.

Small businesses represent

99%

51,6%

of Brazilian companies

of the urban work force in the private sector

40%

of payroll

25%

of national GDP

1.1

1.2 National policies and local business 1.1 opportunities

Promoting the micro and small company is not only a public management obligation, but also it is a way for the country to grow. Check out the main tools offered by the State for supporting your business and of millions of Brazilians that bet in entrepreneurship

GENERAL LAW FOR MICRO AND SMALL COMPANIES National Simple The General Law for Micro and Small Companies determines specific norms for the small business. One of the strengths of such law is related to the calculation and payment of federal, state and municipal taxes and contributions, by means of a specific tax regime. It is the so-called National Simple. The National Simple’s ease begins at the time of accessing the systems benefits: even if the business owner is in debt before the National Institute for Social Security – INSS or before the Treasury, the system divides such debt in up to 100 monthly installments. The businesses registered before the Simple National are exempt from the payment of other taxes set forth by the Federal Government, including those due to private social services entities.

General Law The General Law also provides an ease of access to credit and to the market, by giving preference to the micro and small businesses in the acquisition of goods and services by various instances of the public administration – this fact is quickly recognized as a business opportunity for entrepreneurs. In addition to promoting the small business, this action creates a virtuous cycle of local development, generating an increase in public revenue, which, on its own, may be reverted into improving public services and in social programs for the community. One of the central parts of the General Law is the Development Agent. Responsible for the application of the General Law in the corresponding city, his duty is to articulate actions that will strengthen the micro and small businesses in his acting municipality. The Agent must be the main contact between the municipal authorities and the private sector, being in charge of implementing a Work Plan that observes the guidelines of the General Law, but

that will also go beyond it, proposing all types of actions that may stimulate local growth. The municipalities of several small cities count with a physical space called the Entrepreneur Lounge – it is in this room that the Development Agent works, organizing, for example, courses and workshops, many times, in partnership with Sebrae. It is also the agent’s role to create working groups and public, private and community leadership mobilization for the continuous progress of local entrepreneurship.

NATIONAL POLICY FOR SOLID WASTE The goal of the National Policy for Solid Waste – PNRS is the creation of mechanisms that enable the prevention, reduction, reutilization, recycling and treatment of solid wastes at a natio nal level. Thus, the PNRS reinforces the principles of hierarchy of solid waste, a concept that, in a priority order, uses the following guidelines: generation; reduction; reuse; recycling; treatment and final disposal. All the national plans and programs must follow this logic, so as to improve the use of waste and, consequently, reduce the environmental impact of human activities. The idea is that, through norms imposed by this Policy, wastes that were always seen by society as “garbage” would be adequately destined, generating a more responsible relationship with the environment and new business opportunities for the public and private sectors, besides strengthening recycling cooperatives, which guarantee a source of income to thousands of Brazilians throughout the country. The idea is that, by August 3,

AN EYE ON OPPORTUNITY

LGMPE: Know the General Law in order to strengthen local development Many public managers and entrepreneurs still are still oblivious to most of the General Law’s benefits. In April 2013, six months after entering into force, only 850 of over five thousand Brazilian cities had adapted to such legal regulations, that is, prioritized the small businesses in public purchases and partnership agreements. Such lack of information ends up damaging the small entrepreneur and the municipality as a whole: when the mayor chooses to purchase from an outside company, the wealth goes away and a chance to boost local economy is lost. One of the law’s chapters say foresees that municipal public tenders of up to R$80 thousand must be granted exclusively to small businesses, besides a 30% participation in agreements executed between the municipality and large companies, which usually generate subcontracting. In order to have an idea of the size of the market to be explored, the Ministry of Planning estimates a total of R$400 billion spend every year in public purchases – currently, R$15 billion are directed to small sized companies.

1.2

2014, Brazil will not have any more open dumps – such dumps, known as “lixão”, will be extinguished from the country as a symbol of a new rational waste management phase. By 2020, Brazil should have the necessary structure to adequately dispose of any solid waste.

GOOD TO KNOW In order to be deemed a micro company, its gross revenue cannot be greater than R$360 thousand/year. In the case of small businesses, this figure must be limited from R$360 thousand to R$3.6 million/year. The Individual Microentrepreneur – MEI may also benefit from the debureaucratization offered by the Simple National: this category is valid for business owners whose gross revenue does not exceed R$60 thousand/year.

NOT CARRYING OUT SELECTIVE COLLECTION AND NOT USING REVERSE LOGISTICS DOES NOT ONLY RESULT IN THE IMPOSITION OF SANCTIONS AND IN DISRESPECT TO THE ENVIRONMENT: IT MEANS THE ENTREPRENEUR AND PUBLIC MANAGER ARE WASTING MONEY Intermunicipal consortiums In accordance with the law, the state government must promote the creation of intermunicipal consortiums. Given that Brazil have over 5,500 municipalities – mostly small – many will not have structural conditions to comply with all demands, causing that partnerships between cities become a more viable option: the more people are attended to, the lower the costs with installation and maintenance of fixed structures will be. Another advantage is that consortial solutions will be prioritized at the time of obtaining federal resources.

Collectors The integration of reusable ma-

1.2

terial collectors is listed as one of the main principles of the law. The goal is to enable the economic emancipation of such group, which is usually composed by people with low income. The public authorities may institute financing sources in order to make up for the necessity of new associations of collectors and the strengthening of the already existing ones – the city that invests in selective collection by means of stimulation to collectors will be prioritized at the time of accessing public resources. In a research carried out by the Brazilian Institute of Geography and Statistics, public managers of 30% of Brazilian cities know of the existence of collectors’ cooperatives in their respective cities, yet only 15% of these municipalities create official partnerships with these associations. One of the proposals of this law is exactly to overturn this scenario.

Selective collection

5,1% 6,0% 7,1% 25,9%

Selective Collection by Region in 2010

41,3%

BRAZIL

19,2%

With this law, selective collection became mandatory: the city that does not have a specific plan in regard to such sector risks inability to request federal resources for urban cleaning. The municipalities had to send their programme by August 2012, explaining how to plan, implant and maintain a selective collection system in their city. Without selective collection, recycling is unviable and an enormous amount of waste, which could be turned back into raw material, ends up at dumps. Selective collection is the first step towards the implementation of the reverse logistic.

97,9% of alluminum cans in circulation were recycled in 2012

Reverse logistics When related to solid waste management, one of the most accepted methods by specialists and promoted by public managers is the so-called reserve logistic. The basic idea of this concept is transforming traditional logistics “raw materials– manufacturer – seller – consumer – discard” in a circular system that, when the final stage is reached, it goes back to the beginning, that is, to the industry. The best success story of reverse logistics is recycling of aluminum cans in Brazil. In 2012, over 267 thousand tons of cans were recycled. This number means that 97.9% of cans in circulation in the country were reused – from garbage they become raw or starting materials again. According to the National Policy for Solid Waste, private companies and public authorities have to show joined efforts in order for the reverse logistics’ chain to be implanted with success. Depending on the manufactured or commercialized products, the business owner must promote reverse logistics without the help from public management. This is the case for agrichemicals, its packaging and wastes, batteries, tires, fluorescent lamps and electronic products. All participants of the reverse logistics systems must provide to the competent municipal authority information and updates on the activities that are being carried out routinely. Ultimately, not carrying out selective collection and not using reverse logistics does not only result in the imposition of sanctions and in disrespect to the environment: it means the entrepreneur and public manager are wasting money.

Municipal Plan for Integrated Management of Solid Waste – PMGIRS Public authorities must prepare a scheme detailing how they will manage solid waste produced in their cities. The National Policy for Solid Waste will be used as a guideline for the preparation of Municipal Plans that, by their own, will instruct the application of the Policy at a municipal level. Each Plan must be prepared based on a diagnosis containing the main actors and activities, as well as intended goals regarding management activities, treatment, collection, recycling and final

Public managers of % of Brazilian cities know of the existence of cooperatives

1.2

Only % of municipalities create official partnerships

STAY TUNED The municipal plan for integrated management for cities with under 20 thousand residents can be simpler than those for other cities.

Do you know what shared liability, polluter pays principle and extended responsibility are?

1.2

The National Policy for Solid Waste defines three main goals: reduction of usage of resources, appreciation of consumed materials and correct destination of materials after reutilization. Shared liability was a way to say that everyone has to participate: public sector, private companies and civil society must unite efforts in order to reach these goals. Through the polluter pays idea it was possible to realize that everyone is responsible for the way which the resources are used and the way waste is destined, which does not mean everyone must pay the same amount. Great generators, or big industries that produce consumer goods (such as plastic and paper packages, glass jars, water bottles, aluminum cans, amongst others), have a different role. Extended producer responsibility, also called post-consumer responsibility, sets forth that manufacturers, distributors and merchants are liable for the destination of the products that they manufacture, even after acquired by the consumer. This means that they must construct and inform the best path for discarding the consumed product. Companies will not be isolated in the execution of this job, but, by means of sectorial agreements, will get closer to other enterprises that act in the same sector. The sectors contemplated in the National Policy for Solid Waste are: plastic packaging, glass bottles, medicine, electronics, batteries, agrochemical containers, tires, lubricating oil packaging, fluorescent lamps, personal hygiene packaging, perfumery and cosmetics and cleaning materials.

disposal of urban solid waste (RSU), industrial (RSI), hospital (RSS), electronic (REEE) and construction and demolition (RCD) wastes. Amongst all aspects that must be contained in the plan, some are worth highlighting: D diagnosis of the volume, characteristics and adequate environmental destination of waste generated in the city; D environmental and operational performance indicators of urban cleaning and solid waste management; D regulations for the transportation and other stages of the management of solid waste; D programs and actions on environmental education to cooperatives, associations and also for the public; D mechanisms for the creation of businesses, jobs and incomes by means of appreciation of solid waste; D goals for reduction, reutilization, selective collection and recycling, having as a final purpose the decrease in the volume of discards sent to final disposal, even if environmentally adequate; D definition of the local public authorityâ&#x20AC;&#x2122;s limits regarding selective collection and reverse logistics. In accordance with the law, it is evident that the Brazilian government is addressing the universe of waste with an entrepreneurial perspective. More than merely obligations, each of the aforementioned items may be explored in terms of business opportunities for the strengthening of the city. Throughout this booklet, we will see tips and success stories demonstrating pathways for productively using the new rules imposed by the law. In order for a municipality to organize its PMGIRS, the creation of two forums are recommended: the Master Committee and the Support Group. The first must be represented by the main managers and trained individuals of municipal organisms involved in the topic â&#x20AC;&#x201C; they will coordinate the preparation of the Plan, as well as release information

Types of wastes TYPE

ORIGIN

Household wastes

Domestic activities in urban residences

Urban cleaning wastes

Sweeping, cleaning of public roads and streets and other urban cleaning wastes

Solid urban wastes

Household and urban cleaning wastes

Industrial wastes

Manufacturing processes and industrial installations

Health services wastes

Health services

Construction wastes

Building, renovations, repairs and demolitions of constructions, including the waste resulting from the site preparation

Agroforesty wastes

Agricultural activities and silvicultural activities (cultivation of wood), including the waste resulting from inputs into these activities

Transport services wastes

Ports, airports, customs, roads and rails terminals and border crossings

Mining wastes

Research, extraction or beneficiation of ores

on the studies’ status and enable areas for the execution of meetings. The Support Group, in turn, has the function of assuring debates with the participation of all the involved parties during the meetings, contributing to the Plan’s implementation. The group must contain civil society’s representatives and representative of the solid waste sector. The preparation of a diagnosis for future scenarios, definition of guidelines and establishment of goals, programs and necessary resources are essential factors for the preparation of the Municipal Plan for Integrated Man-

Brochure Solid Waste Management

agement of Solid Waste by the public manager. A good reference on this topic is ICLEI Brazil’s booklet, Waste Management Plans: Orientation Manual – Supporting the implementation of the National Policy for Solid Waste: From National to Local.

Solid Waste Management Plan for Micro and Small Companies Just as the public manager has a number of obligations, so does the entrepreneur. He must present a solid waste management plan, explaining how the company will deal with several types of wastes generated by its production chain. In the cases of micro and small businesses, this report is not mandatory, unless the operations involve the generation of dangerous waste, that is: inflammable, corrosive, reactive or toxic material, enough to jeopardize or put in risk public health or environmental quality. In spite of not being mandatory, it is advisable that the business owner carries out this diagnosis with an environmental consultancy company, so as to detect any processes that may be contributing to the degradation of the environment. Even if the entrepreneur does not have a solid waste management plan, he will not be able to discard wastes in any way. A good tip is to contact the association responsible for the corresponding business sector, find out if they have a management plan and how the business is able to fit to such scenario. Talking to recycling companies and waste collectors’ cooperatives is also an option, nevertheless, you would have to find out if they have all the necessary environmental licenses and if they operate with the waste discarded by your company. An interesting alternative is to contact Sebraetec, a Sebrae tool that allows rural producers and micro and small companies of any segment to have subsidized access to innovation and technology services. The Solid Waste Management Plan, for example, may be prepared by a specialist with a subsidy of up to 80% if Sebraetec is involved.

1.2

NATIONAL PLAN FOR BASIC SANITATION

1.2

The National Plan for Basic Sanitation´s intention is that between 2014 and 2030 over R$508 billion will be invested in potable water supply, sewage treatment, urban cleaning and draining actions in Brazil. The main idea is that the Plan focuses in those areas occupied by the low-income population. Like the National Policy for Solid Waste, the National Plan for Basic Sanitation bets on the end of open dumps, as well as aims at guaranteeing universal access to potable water and extinguishing untreated sewage – sewage draining, one of the great sources of river and streams contamination, will no longer be permitted. The services provided for in the plan must also reflect environmental healthiness of rural population and small isolated urban areas, as well as indigenous people and other traditional population, bringing solutions that are compatible with their sociocultural characteristics. In relation to potable water supply, the estimation is that all urban areas will be benefited until 2023. The goal, for collection and treatment of sewage, is that in the next 20 years 93% of cities will be attended to. The idea is that the set of procedures that compose the concept of basic sanitation – water supply,

33%

Take a look at some cases in chapter 2.2

of the Brazilian population does not have access to quality water

sewage, urban cleaning and solid waste handling – is adequately executed not only relevant to public health, but also to the environment. Considering Brazil´s data, this is an area that needs to develop: nowadays, 33% of the Brazilian population does not have access to quality water and only half of the country´s cities have sewerage treatment. This scenario, for the public managers and small entrepreneurs with vision, that may seem bleak to the common eye, offers opportunity niches for the development of new services and businesses. In Brazil and in the world, increasingly, innovative solutions are being created for basic sanitation challenges, attending to basic health issues, respecting the environment and – finally – generating revenue for its investors.

NATIONAL POLICY FOR THE ENVIRONMENT (PNMA) The National Policy for the Environment was created to assure a harmonious relationship between socioeconomic growth and ecologic balance. Based on said main objective, public authorities define priority areas for governmental action, establish criteria and patterns for environmental quality and regulations over the use and handling of natural resources. The development of national research and technologies focused on the rational use of environmental resources is also one of the priorities, as well as diffusion of technologies of environmental handling, environmental data and information disclosure and the creation of public awareness, grounded on actions for environmental education. Any public or private activity that explores or presents possible risks to the environment must follow the National Policy for the Environment’s guidelines. If the polluter business does not recover or compensate the damages, it will be subject to administrative penalties (fines, withdrawal of tax benefits, suspension of financing credit lines) or criminal

lntegral Protection Units CATEGORY

GOAL

USE

Ecologic Stations

Preservation and research

Public visitation with educational purposes, as well as scientific research

Biological Researches (REBIO)

Animal and vegetal preservation, without environmental interference and modifications

Public visitation with educational purposes, as well as scientific research

National Park (PARNA)

Environmental preservation of great ecologic importance and natural beauty

Development of activities for environmental education and interpretation, recreational activities to maintain contact with nature and ecologic tourism, as well as scientific research

Natural Monuments

Preservation of unique natural sites or those of great natural beauty

Public visitation

Wildlife Shelters

Protecting natural environments and assuring the existence or reproduction of flora or fauna

Public visitation with educational objectives, as well as scientific research

Environmental Protection Area (APA)

Protection of biodiversity, regulating the occupation process and assuring the sustainability of the natural resources

The private property must abide by established rules and restrictions

Relevant Ecological Interest Area (ARIE)

Protection of the natural environment and regulation of the use of those areas

The private property must respect constitutional limits, norms and restrictions for their use

National Forest (FLONA)

Sustainable use of the forestal resources for scientific research, with emphasis on methods for sustainable exploration of native forests

Public visitation with educational objectives, as well as scientific research

Extraction Reserve (RESEX)

Protection of the forms of subsistence and culture of the traditional extractive population

Visitation, vegetal extraction, sustainable agriculture and the rearing of small animals

Fauna Reserve (REFAU)

Preservation of both the aquatic and terrestrial native animal population

Scientific research

Sustainable Development Reserve (RDS)

Preservation of nature, assuring the necessary conditions for the reproduction and improvement of the methods and the quality of life of the traditional population

Sustainable exploration, visitation and scientific research

Private Natural Heritage Reserve (RPPN)

Conservation of the biological diversity

Public visitation, tourism and scientific research

1.2

THE NATIONAL SYSTEM OF CONSERVATION UNITS WAS CREATED IN ORDER TO PRESERVE THE BRAZILIAN NATURAL WEALTH AND GUIDE ITS SUSTAINABLE USE, CREATING INNUMERABLE OPPORTUNITIES FOR INNOVATIVE BUSINESSES charges (reclusion of up to three years). In addition to the aforementioned, the main components of the PNMA are: the definition of environmental quality standards; promotion of the production and installation of equipments that preserve such quality, environmental zoning and licensing of polluting activities.

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National System of Conservation Units The creation of territorial spaces protected by the State was one of the strategies of the National Policy for the Environment Conservation Units (UCs) are protected environmental areas designated by public authorities – whether municipal, state or federal – in order to guarantee the preservation of Brazilian biodiversity. The National System of Conversation Units (SNUC) was designed to strengthen the UCs, promot-

ing and regulating the interaction with the civil society, the State and the environment. The Conservation Units are divided in two groups: those of integral protection and those of sustainable usage. As the name says, those relevant to integral protection are destined mainly to the preservation of nature, while those related to sustainable use allow the determination of economic and productive activities associated with the preservation of the environment. In spite of this booklet’s focus on business opportunities, we must also address areas of integral protection, given that they are used for educational activities and are an excellent asset when relevant to enterprises of the tourism sector. Throughout this booklet, we will see how these resources of Brazilian biodiversity can be seen as excellent business opportunities – new businesses that are not only good for the pocket but also for the future generations.

NATIONAL BIODIVERSITY POLICY (PNB) Currently, Brazil has over 70 species of mammals under threat of extinction and another 100 species of birds are in the same situation. The Atlantic Rainforest, one of the forest areas with the richest biodiversity on Earth, has seen the decimation of 91% of its territory – the Amazon Rainforest, meanwhile, has already had 15% of its area diminished. The examples of cautious use of natural resources are not few and industrial advancement is the biggest indicator of this situation. It is in this context that the National Biodiversity Policy comes

STAY TUNED

The National Policy for the Environment mandates that all potential polluting company must register its activities in the Federal Technical Registry that, by means of the IBAMA, joins activities and tools of environmental defense.

GOOD TO KNOW The concession contract does not include access to the genetic heritage, commercialization of carbon credits, exploration of water resources, minerals, fishing grounds or wild fauna. The land continues to be owned by the government during the entire concession period, during which only the right to carry out management of the forests in the area are permitted.

into existence. The Policy’s proposal is to show that biological diversity has real importance independent of the values attributed by mankind, as the eradication of poverty surpasses the conservation of biodiversity. The law says that everyone has the right to an ecologically balanced environment, making it a public and civil duty to preserve it for the present and future generations. No ecosystem can be managed above its functioning limits, whether in relation to the management of soil, water or biological resources. The importance of the relation between biodiversity and the private sector is cited several times in the PNB text. It is a public obligation to create and strengthen mechanisms to stimulate private companies to develop conservation projects for threatened species and to use natural resources in the sustainable way. The interaction between the agents of the National Biodiversity Policy and businessmen must also be promoted, with the objective of identifying new business opportunities for the entrepreneur.

PUBLIC FOREST MANAGEMENT LAW Brazil is one of the countries with the most forest areas in the world: 5.4 million km2 of forest area, which represents close to 60% of national territory. In order to preserve the immeasurable wealth of resources of this heritage, a series of actions have been executed by the public, with special emphasis on the Public Forest Management Law, created in 2006.

The law brings a series of guiding principles that show how the management of the use of the Brazilian forests, whether they are natural or manmade, in the Amazon or in other regions must be carried out. Within these principles, it is important to note forest conservation, respecting the traditional communities who live in them, the support for research and promotion of the production activities that contribute to the forest maintenance. In one of the modes of management permitted by the law, forest exploration can be carried out by the private sector. In order to decide who will use a determined forest, a public tender is opened. The party who offers the best technical proposal – considering environmental, societal and efficiency aspects as added value –, as well as the best price will be selected. Small, medium and large companies, cooperations and communities can participate in the public tender. A fundamental point is that the proposals for use of the forest must prove that the resources will be able to be used for an indeterminate amount of time, in other words, are sustainable. Whoever wants to go into the forest business must also present the Sustainable Forest Management Plan – PMFS, a document which details the company’s procedures in relation to the economic advantages obtained in a sustainable manner in the forest area. The fact that the PMFS is mandatory is advantageous not only for the local flora and fauna – the resources are better utilized, the activity becomes more profitable and the risk of a work-related accident is reduced. In other words: the entrepreneur also comes out winning when the environment is respected.

1.2 Public tender is a type of contest to see who offers the best benefits for the use of the forest

Working for the forest

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Created in the context of the forest concession policy, the Brazilian Forest Service (SFB) is the main organism of the management of public forests in Brazil. Associated with the Environmental Ministry, its goal is to reconcile the use of conversation of natural resources in forest areas. The SFB is responsible for the concession of public forests, offering the entrepreneur the possibility to extract wood and nonwood products, as well as offering tourism-related services, always in a regulated and sustainable manner. The idea is that the conceded area generates jobs for the local community and also offers quality products to the population, with the guarantee that the environment was not exploited in a precarious manner during the process.

The Federal Government defined three ways for compensating entrepreneurship which uses the management of public forests as a source of income: taxes on billing, single rate of access and taxation on profits. Part of the money that is collected goes to the National Fund for Forest Development, which must direct its resources for the continual improvement of the sustainable forest activities in Brazil and for the promotion of the technological innovation in the area.

A FUNDAMENTAL POINT IS THAT THE PROPOSALS FOR USE OF THE FOREST MUST PROVE THAT THE RESOURCES WILL BE ABLE TO BE USED FOR AN INDETERMINATE AMOUNT OF TIME, IN OTHER WORDS, ARE SUSTAINABLE

Sustainable Municipal Management and support of small businesses development

2.1 Long-term management: strategic and territorial planning Managing the occupation and expansion of urban area is not an easy task. See the tools offered by the Brazilian legislation for the public manager to assure the proper living of the population and that the entrepreneurs have conditions to execute a long-term plan 30

Sustainable municipal management cannot take place in an isolated manner – municipalities need to find solutions that are in harmony with national and state guidelines and strategies, as well as with other municipalities within their territory. If economic development of a city affects the residents of a neighboring city, the growth is not sustainable and must be reconsidered. Territorial and long-term planning are essential instruments to an efficient and sustainable management. Despite the existence of a series of procedures and tools for long-term and territorial planning in public management, this practice is still uncommon in Brazilian cities. The creation and the due compliance with the master plan, of the urban perimeter and of territorial zoning plan – tools that will be detailed shortly – are enough to optimize occupancy, but the lack of information is still an obstacle, causing that the lack of criteria for order lead to problems of difficult undoing. An example of this is the housing situation in several Brazilian cities. The lack of planned and mitigating management gives way to the existence of irregular lots, a recurrent image in urban landscapes of Brazil. The consequences for lack of planning are reflected in the distortion of the so-called urban perimeter, whereby city lines are indiscriminately crossed. In order to avoid disorderly growth and create conditions for the cities to develop over a sustainable basis, the use of long-term planning tools is essential. Some of these tools are very well known, but are rarely used in dayto-day management. It is time to review the plans and evaluate: are we growing in a sustainable way?

MASTER PLAN The Master Plan is a municipal law that establishes guidelines for the organization of physical spaces of a city, defining parameters for growth and operation of the city’s urban and rural ar-

STAY TUNED Containing budgetary guidelines, the Master Plan is an important tool for identification of business opportunities and partnerships between the public and private sectors.

eas. This plan must respect the citizens’ needs and, ultimately, reflect what its residents consider as an ideal city. The preparation of the Master Plan is mandatory for all cities with over 20 thousand residents. If the population is below such number, but the city belongs to a metropolitan region, has touristic interest or is executing constructions that put the environment at risk, the Plan is also necessary. The document needs to contain budgetary guidelines and annual budget, as well as indicate priorities relevant to public expenses.

THE MASTER PLAN MUST RESPECT THE CITIZENS’ NEEDS AND REFLECT WHAT ITS RESIDENTS CONSIDER AS AN IDEAL CITY

CITY STATUTE

URBAN PERIMETER LAW

One of the functions of the Master Plan is to dictate how the City Statute will function in the municipality. The Statute is a law created in 2001 to guarantee that the access to offered opportunities for urban living be an absolute right to all people. Fighting real estate speculation, creating mechanisms so the low-income population can live in regions blessed with infrastructure and preventing that environmentally vulnerable areas are occupied are some of the basic principles that created the City Statute – environmental sustainability was established as one of the directives to be followed when preparing and conducting urban planning. Special Zones of Social Interest (ZEIS) are areas that are designated to receive housing settlements for the low-income population. Since this type of area is overseen in the Master Plan, there is support from the municipality and the residents do not risk being evicted.

The Urban Perimeter Law is responsible for determining which regions are part of urban area and which are part of the rural area of a city. This division is essential for the concoction of public policies intended for this or that region of the city. The municipalities that intend to expand their urban perimeter after the date of publication of such law must prepare a specific project. The document needs to indicate the determination of new limits, specifying which are the stretches restricted to urbanization.

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GOOD TO KNOW Depending on the classification of the area, as per the law, the rules for licenses change, that is, if the entrepreneur intends to build his business in a rural zone, the requirements are different from those in the urban zone. Get informed with your city’s municipality before planning your project.

TERRITORIAL PLANNING AND ORGANIZATION

S O C I E T Y

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I N V O L V E M E N T

ECONOMIC DEVELOPMENT

ENVIRONMENT PRESERVATION

BETTER QUALITY OF LIFE

G O V E R N M E N T

SUSTAINABLE GROWTH

I N V O L V E M E N T

The occupation of soil is also an important aspect of the law, which requires that the parameters of occupation promote diversity of usage and contribute to the generation of new jobs and income, as well as help in the installation of areas for occupancy of social interest, through the delimitation of ZEIS and other urban policy tools.

STAY TUNED With the trend of decentralization of administrative proceedings brought forth by the National Policy for the Environment, some cities have raced ahead and prepared their ZEE in a local level. This is a sign that, increasingly, the Brazilian municipalities are taking charge of their own development with sustainability and social participation.

ZONING LAW The Zoning Law aims to optimize the use of public space, dividing the city’s occupation in accordance with the objective of each construction. Traditionally, this division is executed based on commercial, residential, industrial and mixed zones, but today, other regulation patterns exist. How can this law favor the local sustainable development in a municipality? The possibilities are many and will vary according to the profile of each city and their main cultural and economic aptitudes. Zoning may be thought over, for example, in a way to integrate new businesses that possess synergies, in other words, that work together, creating a special productive axis. If the municipality has notable scenic beauties, zoning may appreciate such assets, creating leisure areas that may also be commercially explored. The National Policy for the Environment instituted the modality known as Ecologic-Economic Zoning (ZEE) or Environmental Zoning, which has

GOOD TO KNOW The ZEE is another communication channel between the government and all sectors of society, such as traditional communities, organized civil society groups, companies and public managers. It must assure conditions for promotion of quality of life of the population with economic growth and environmental preservation – that is, it must be capable of reconciling interests of the different sectors.

as an objective the harmonization of socioeconomic development with environmental conservation. The ZEE establishes legal guidelines for each identified zone, stimulating actions aimed at mitigating or correcting harmful environmental impacts. This plan can be an excellent tool for those municipalities interested in promoting sustainable development in their city. Since the three governmental spheres share jurisdiction – Federal, state and municipal – the municipalities must look to stay informed on the status of the ZEE in their state, contributing to the construction and usage of tools already available for the conduction of plans and strategic actions for the city’s development. For public managers, the ZEE is an important instrument for promoting the articulation between different government spheres and other actors from society. Knowing the possibilities for institutional dialogue is fundamental for the creation of partnerships that may benefit the municipality. If your city is located in a special environmental interest area, such as National Parks and other Conversation Units, it is even more important to be engaged with the state’s ZEE.

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2.2 Small business participation in services rendered to municipalities: how to stimulate 1.1this partnership

The partnership between municipalities and small businesses is beneficial to both sides of the coin. Understand how public management must stimulate this interaction, showing the entrepreneur mechanisms that are already overseen by the law, but that not everybody knows about

The cooperation between municipal public management and small private businesses is a recipe for local development success. In order for this partnership to work, knowing and exposing legal existing mechanisms is necessary – besides, of course, putting on the entrepreneurial spirit and creating new solutions, as many municipalities in Brazil are doing. See the tips in this chapter and inspire yourself to make a difference in your municipality.

LEGAL BUSINESS: FORMALIZING IS THE FIRST STEP Mapping out the city’s informalities is a good first step. As soon as this research gathers sufficient data, the manager can promote public campaigns for the incentive of formalization, increasing the range of small businesses apt to participate in public tenders. The municipality must promote several capacitation programs on the creation and management of small businesses. The more quality information is disclosed, the more potential entrepreneurs will show up in your city – the same is true for public managers, who must receive adequate education in order to handle the topic. Many entrepreneurs occupy fairs, plazas and other public places in a disorderly manner. It is up to the public manager to organize and structure these spaces, looking for creative solutions instead of punitive measures.

STIMULATION TO THE ENTREPRENEUR Credit access must be facilitated. Public managers must look for partnerships with entities that represent commercial trade in order to identify the best financing options for the small business owner. Exposing less know alternatives, such as credit cooperatives,

is also a good pathway. Some municipalities exempt from the payment of IPTU (municipal real estate tax) the entrepreneur that uses their own address to register the company, causing the creation of businesses and the collection of taxes to increased in the long-term. Municipalities must intermediate and promote the relation between small rural producers and scientific and technological research companies. The exchange of knowledge allows the farmer to use eco-efficient solutions on his work routine, increasing sustainability and business chances of growth.

Guide to the Entrepreneur Mayor This Sebrae guide brings a series of tips and success stories to transform municipal management into a real success business

SUSTAINABLE PUBLIC TENDERS Most of the time that a municipality needs to purchase a product or service, it carries out a public tender to select the supplier. This process of public purchases may mean another business opportunity for the small business owner that must always pay attention to opening of public tenders. As an entrepreneur cannot create a sustainable business without being extremely meticulous in picking suppliers, public administration has the duty to observe environmental responsibility of businesses before concluding public purchases, whereby creating a virtuous cycle: micro and small businesses become partners with the public sector at the same time that preservation of the environment is stimulated. The General Law created a series of mechanisms for the small business owner to sell his products and services

STAY TUNED In order to stimulate formality, municipalities must adhere to the REDESIM, an online system that simplifies the creation and legalization of companies. In order to know how to use this system, contact the competent Board of Trade.

The Municipality of Porto Alegre, in Rio Grande do Sul, found a very efficient solution for stimulating formalization of local businesses: Small Business Line, a bus that works as a mobile service unit. This itinerant office gives information about management, microcredit and municipal licenses, as well as legalizing the micro and small business at the spot, within the vehicleâ&#x20AC;&#x2122;s premises.

to the public sector. For these opportunities to be seized, it is the municipalitiesâ&#x20AC;&#x2122; role to expose such information and make them reach the population. Public managers have to keep up to date on new policies and their requirements for public purchases. Arguing that sustainable products are more expensive and, therefore, less competitive is no longer backed up by reality. It has been already proven that the long-term benefits of a sustainable production chain overcome any firsthand higher costs. Another proof of this is that the Federal Governmentâ&#x20AC;&#x2122;s general vision in relation to such subject is changing: the National Policy for Solid

2.2

The city of Penedo in Alagoas is a great example of how to unite the city’s Master Plan with the stimulation for small businesses. By protecting historic buildings, revitalizing the San Francisco River’s borders and reforming the local free fair, the municipality increased the city’s touristic potential, giving raise to several small businesses in the region and heating local economy.

Governmental Purchases This booklet by Sebrae teaches the ways to become informed of notices and public bids, as well as giving tips on how to become a provider of the municipality of your city

Waste requires that public purchases of products like tires, lamps, ink cartridges and computers be made only from suppliers that promote reverse logistics, destining their wastes adequately. Sustainable purchase may be applied virtually to any need of the public sector. The acquisition of lunch for public municipal schools is a good example. At the moment of purchasing the food that will be used to make lunch, public administrators must give priority to small local businesses, stimulating the city’s economic growth and also generating a higher quality meal for the children, given that the small producer may not use agrochemicals on their plantation. The National School Meal Program (PNAE) requires public schools to start using products from small farmers in their meals, establishing that at least 30% of the resources made available to the municipalities for the PNAE must be directed to familial agriculture, without the need for public tenders.

CONCESSION AND PERMISSION OF THE PROVISION OF PUBLIC SERVICES The concession of public services works based on similar logic to that

TO CONDUCT A PUBLIC TENDER, THE MUNICIPAL MANAGER MUST TAKE INTO ACCOUNT A SERIES OF CRITERIA. IT’S NOT ONLY THE QUALITY OF THE TECHNICAL PROPOSAL WHICH IS CONSIDERED: THE LOWEST COST, THE HIGHEST SERVICE OFFER AND THE FINANCIAL VIABILITY OF THE PROJECT ARE ALSO IMPORTANT FACTORS

The MASTER PLAN provides budgetary directives and guides public purchases

PUBLIC PURCHASES are a major mechanism to stimulate small business

LOCAL ENTERPRISES

must observe the guidelines of the Environmental Zoning

2.2

The adoption of this process contributes to the SUSTAINABLE

DEVELOPMENT OF THE CITY

2.2

38 38

The city of Ponta Grossa in Paraná carried out a research with micro and small businesses within its municipality in order to map out the participation of these businesses in the purchases carried out by the public sector. During the year of 2012, R$470 million were used by public municipal and federal authorities in the acquisition of products and services offered by small businesses in Ponta Grossa. The result of the research reveals that the municipal sphere is the best pathway for the entrepreneur that wants to become partner with public organisms: of the 140 companies consulted, 78% sold to the municipality, while state and federal governments remained with 35% and 24% of sales, respectively. From the total of businesses that answered the research, 74% did not maintain any type of commercial relation with public organisms in 2012 – the main argued reason was the lack of information on public tenders, as well as the fact that many entrepreneurs do not believe that the structure of their business is not large enough to attend to a public sector client. In spite of this, numbers prove that it is worth it: half of the companies that participate in public tenders increased billing and 27% expanded their employee structure. The research is part of the Buy Ponta Grossa Program that has as an objective articulation of partners, gathering information and educating the region’s entrepreneurs.

of public purchases. The difference is in the objective of the contract: in the case of purchases, these are products; in the case of concessions, public management is acquiring a service. If the municipality needs to do construction, for example, the municipality opens a public tender where interested parties can present their proposals, where the selected company must guarantee that it has conditions to complete the project in the stipulated timeline and under the conditions outlined in the contract. To conduct a public tender which will hire a private service, the municipal manager must take into account a series of criteria so the competition will be as fair as possible. It’s not only the quality of the technical proposal which is taken into account: the lowest cost, the highest service offer and the financial viability of the project are also important factors. If there is equality in the conditions, a Brazilian company is given preference.

PUBLIC PRIVATE PARTNERSHIP A public private partnership can function in two ways: a sponsored concession and an administrative concession. In the first, beyond the provided fare in the contract, the public sector must execute an additional payment to the company; in the latter the public administration is the direct or indirect user of the services provided. In accordance with the Brazilian legislation, all public private partnerships must be based on a contract of at least a five-year term and of a minimum value of R$ 20 million. The hiring of partnerships between the public and private sectors must also be carried out through public tenders, observing the technical and financial aspects at the moment of selection: it is important to guarantee that the expenditures created will not affect previously set fiscal results, so that the partnership results in the permanent

STAY TUNED The public organisms must demand that the entrepreneurs involved in the process provide proof that their environmental licenses are up to date.

increase of revenue and the constant reduction of expenses. The contracted subject must be previewed in the multiannual plan and the contracts must be available for public consultation, be disclosed in official press, and in newspapers widely circulated on the Internet. The so-called Public Private Micro-alliances (Micro APPs) are gaining ground and are starting to be adopted by some Brazilian cities – selective collection, urban cleaning and solid waste management are a few of the segments that most fit into this type of partnership.

CONSORTIUMS The creation of consortiums or associations is a recurring alternative for companies that are interested in participating in public tenders and public concessions: the high level of complexity and high expenses involved in the contracts, many times, demand this solution. One of the benefits of participating in a consortium in official publications is the increase in competitiveness between competing companies, given that the public authority will have more options to choose from. Although the existence of consortiums may lead to a horizontal relation between participating companies, one of them may possess a greater degree of leadership. The idea it not to have the other involved parties be subordinates to such company, but that the contracting authority will have a point of reference during the development of the project. In some cases, the

The Municipality of Capitão Enéas in Minas Gerais is executing a series of actions to popularize knowledge over the General Law and engage micro and small businesses in public purchases and tenders. In 2011, the organization of talks and distribution of booklets by the Municipality generated R$4 million for small businesses in the city, which has only 14 thousand residents. The public managers of Capitão Enéas work towards, in the future, having 100% of the suppliers of products and services of the city be micro and small businesses.

2.2

contracting authority may demand that the involved companies create a unified Federal Taxpayer’ Registry for Legal Entities – CNPJ – for the execution of the agreement.

Micro and small companies and sustainable and innovative business opportunities

3.1 Business opportunities in the waste management chain With the publication of the new National Policy for Solid Waste, dormant opportunities awaken for micro and small companies. Understand new demands and discover how to deal with the wastes generated and at the same time jumpstart your company 42

Around the world, and especially in Brazil, the way people, companies and public organisms relate to what we are used to calling â&#x20AC;&#x153;garbageâ&#x20AC;? is changing. The universe of waste is extensive and may be divided in solid wastes, liquid effluents and atmospheric emissions. Solid wastes may be subdivided and classified as seen on the table beside. The planet gives signs of the exhaustion of its resources and it is necessary to start acting: today, men can no longer discard these materials in an irresponsible manner. Just as the range of waste is extensive, the challenges resulting from management procedures are broad: collection, separation, triage, reuse and recycling, as well as treatment and adequate and efficient disposal of waste. One of the central ideas of this new scenario may be summarized in one sentence: waste is opportunity. One giant portion of what we are used to dispose may be completely reused and reintegrated into our production systems. Recycling is gaining momentum, reducing pressure on raw materials, optimizing production processesâ&#x20AC;&#x2122; costs and opening new and unexplored business opportunities. Implementing environmental education systems, separation of waste at the source, selective collection, as well as establishing recycling chains in all Brazilian municipalities and regional centers is one of the main strategies for the effective implementation of the National Solid Waste Policy. However, this is not the only opportunity in the sector. In this chapter, you will see how the new requisites of the law open a series of opportunities for services that will be increasingly necessary for your city, region and state. Understand this scenario and see ideas that may inspire and guide new business, as well as regularize and rethink already existing business in light of a new low-carbon economy.

AS TO ITS ORIGIN Urban solid wastes DU rban domestic waste (organic, recyclable and non-recyclable/discarded) DU rban cleaning wastes DW astes generated by commercial establishments and service providers Basic sanitation wastes Industrial waste Health services waste Construction and demolition waste Agroforestry waste Transport services waste Mining wastes

AS TO ITS HAZARDOUSNESS Non-hazardous waste Hazardous wastes (inert and non-inert)

Read more on the National Solid Waste Policy in chapter 1.2 of this booklet

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GOOD TO KNOW Each Brazilian person generates, on average, 1.2 kilos of urban solid waste a day. According to the UN, every year, around the world, cities generate 1.3 billion tons of solid wastes. And according to a recent research carried out by the International Solid Waste Association – ISWA, only half of the population is attended by the collection of such garbage. The numbers on that report are impressive. It is estimated that the “collection” phase by itself requires an investment of around 40 billion dollars, without taking into account the volumes of resources necessary for the recycling and composting of the organic portion of wastes.

AN EYE ON OPPORTUNITY

Creating environmental education programs D Guidelines for citizen participation in selective collection programs D Lectures promoting day-to-day conscious consumption: intelligent use of water, benefit of organic food, stimulation of the use of public transportation and bicycle, among other aspects D Citizen awareness for developing the sense of being part of nature – and not the other way around

ENVIRONMENTAL ECONOMY AND ZEROGARBAGE PROGRAMS National Environmental Economy Policy – PNEA – and Municipal Zero-Garbage Programs are aligned with the current National Solid Waste Policy’s guidelines and also generating business opportunities. PNEA focuses on the promotion of educational actions for the recovery and preservation of natural resources, stimulating development and application of tools directed at citizen awareness, in an effort to promote a healthier relationship between human actions and the environment.

D Consultancy for the development of specific programs for environmental education and Zero-Garbage

Which segment can I offer my services to? Schools, communities (houses, condominiums and neighborhood associations, for example), commercial establishments, companies and public organisms

3.1

GOOD TO KNOW

In 1981, the National Policy for the Environment established the need to include the discipline of environmental education in Brazilian schools’ curriculum.

Zero-garbage programs The solid waste public management of San Francisco, city located in the north of California, USA, serves as an inspiration to managers that seek efficient programs for treatment and proper disposal of their city’s garbage. The main axis of the program is the reduction of waste generation, based on strategies for maximum use, with the reinsertion of resources into production chains before they become final disposal. In this sense, the volume of garbage sent to landfills is reduced, having the ambitious goal of generating zero waste. San Francisco uses 80% of wastes, that is, only 20% of what is produced in its territory ends up in landfills – the goal is to reach 100% in 2020. The American city’s good results and ambitious proposal are explained by the operation strategy constructed by its municipality. The collection, treatment and final disposal of wastes are carried out by means of public-private partnerships that have proved to be the most efficient option given the topic’s complexity and technological solutions requirements. Recology is responsible for municipal collection of wastes. Its services involve cleaning, transportation, triage, recovery,

composting and management of landfills. Clean World, another waste management company, operates a biogas generation plant, functioning as an interesting alternative for restaurant owners and other business owners to adequately dispose their organic wastes, by means of composting by anaerobic digestion. The biogas generated by Clean World supplies the automobile industry, while the organic compound is sold to local farmers. One of the differentials of Napa Recycling, another partner of the municipality of San Francisco, is the recycling of civil construction and demolition wastes. In Brazil, this sector is still incipient, but everything points to its potential to be transformed in a profitable market in the next years.

3.1

Services economies Many specialists affirm that we live in a society guided by a disposal culture. As soon as a product is bought, it is quickly discarded, disappearing from the consumers’ eyes as soon as the trash bag is left outside their doors. In most cases, the way the product was manufactured and, after being used, what end it will have is not known. Changing this paradigm is essential for the Zero-Garbage goal to be accomplished. An alternative that has been gaining ground and, increasingly, mobilizing more companies around the world is services economy. Instead of the classic purchase, sale, use and discard relation with products,

this new logic intends the execution of services agreements. A palpable example: telecommunication companies are using this format, selling entertainment service packages that include television installation, according to the brand chosen by the user, and as soon as the device becomes obsolete, the company itself substitutes it, taking responsibility for the proper disposal of the means it uses to distribute its services.

AN EYE ON OPPORTUNITY

Development of intermunicipal consortium solutions for the management of solid wastes and technical preparation of PMGIRS D Diagnosis of origin, classification and disposal options for wastes D Preparation of operational and environmental performance indicators of cleaning services and urban management D Execution of support programs to collectors cooperatives and associations D Preparation of a calculation system for the rending of public cleaning services and waste management D Development of tools for the control and supervision of implementation of solid waste management plans and reverse logistics systemsÂš in the municipality

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Which segment can I offer my services to? Public sectors nationwide

GOOD TO KNOW

For some cities, the PMGIRS may be inserted in the basic sanitation plan. The municipality does not need to prepare a new document, it can use the already existing basic sanitation plan and carry out the necessary amendments.

PREPARATION OF SOLID WASTE MANAGEMENT PLANS Integrated Solid Waste Management Plan (PMGIRS) The PMGIRS is a planning and management instrument that must establish, guide and help the evaluation of solid waste management activities in Brazilian municipalities. The timeframe to be considered is of, at least, 20 years, with the estimate that periodic reviews should be submitted to public consultations every four years. Having a plan is mandatory for municipalities to access the federal resources reserved to the improvement of solid waste management conditions in the country. The National Policy for Solid Waste sets forth guidelines and presents the minimum content that must be considered in the preparation of the PMGIRS. A recommendation for municipal managers is that they hire qualified professionals, trained for the planning and preparation of the study. The planning must oversee and detail goals, actions, control and supervisory mechanisms and strategies for reduction, reusing and recycling of wastes. The process of preparation of the plan must contemplate the consultation and validation of all interested social groups, as citizens, informal collection entrepreneurs, collectorsâ&#x20AC;&#x2122; cooperatives and associations, collection and recycling companies, schools, among others. Public management must focus on the strengthening of collection cooperatives and associations, stimulating the hiring of collectors for selective collection and implementation of reverse logisticsâ&#x20AC;&#x2122; systems in the municipality. This alternative, besides providing a solution to a portion of the challenges relevant to urban solid waste, which still can be used as a genuine space of generation and distribution of income, based on the services rendered and products sold. Some municipalities have already started to prepare their plan, but many are yet to finish such documents.

Solid Waste Management Plan The preparation of the Solid Waste Management Plan is another business opportunity for entrepreneurs. The first step is contacting the municipality and stateâ&#x20AC;&#x2122;s environmental office. A good source of information can also be the National Environmental System (SISNAMA), which informs about the need of presentation of Management Plans relevant to different types of large commercial and industrial businesses â&#x20AC;&#x201C; when mandatory, hiring a professional and carrying out a diagnosis and management plan is necessary. The plan must describe the production stages, the origin, the gravimetric composition and waste disposal methods, as well as measures to improve processes of reduction of use of raw materials and reuse of resources. The identification of those responsible and others involved in each activity described in the document is necessary. It is advisable that the goals set forth in the Plan be validated and disseminated to all company employees before the submission to the competent organisms and to SINIR.

AN EYE ON OPPORTUNITY

Consultancy services for the preparation of the Solid Waste Management Plan D Description of the activity and of the diagnosis of the waste generated or administered, containing the origin and characterization of waste, as well as their respective environmental impacts D Map out stages and point out those responsible for the management D Establish monitoring measures D Construct preventive actions D Establish goals and procedures related to the minimization of generation of waste D Consult on the management of solid waste

Consultancy services for the registry and update of the Management Plan before SINIR D Registration and updating of the Management Plan before SINIR

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Which segment can I offer my services to?

GOOD TO KNOW

Any company that produces consumer goods and that generates solid waste. Find details on the characterization of these companies in chapter V of the Solid Waste Management Plan.

Micro and small companies also have to prepare Solid Waste Management Plans; nevertheless, the procedures and contents are simpler. The guidelines can be found in article 3 of Complementary Law no. 123, of December 13, 2006. The municipal authority will be in charge of the approval of the plan for the businesses and activities that do not require environmental licensing.

AN EYE ON OPPORTUNITY

Consultancy for guidance, planning, implementation and handling of composters and wormeries D Services for environmental education to raise citizen awareness in relation to the separation of organic waste D Planning and installing of composters and wormeries in home and work environments D Training on the techniques for handling composters and wormeries D Services of handling and monitoring of composters and wormeries D Commercialization of organic compound to florists, markets and farming and gardening services D Manufacture and commercialization of composter and wormery kits

Which segment can I offer my services to?

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Companies, schools, universities, communities (houses, condominiums, neighborhood associations, among others) and public organisms

GOOD TO KNOW

You can also install a composter or a wormery in your work environment. Besides giving due destination to organic compound, you will have a constant generation of humus, which may be reused in your gardens.

TECHNOLOGIES FOR THE TREATMENT OF WASTE Organic Composting and vermicomposting (composting with worms) PNRS validates composting activities, mentioning them as a viable alternative as per the National Policy on Solid Waste, the managers of public urban cleaning services are responsible for the implementation of composting of organic solid waste, by means of articulating potential entrepreneurs for the use of the produced compound. Composting is a natural decomposition process of vegetal and animal material. Vegetal and animal (humid) waste, such as leftover food, may have their decomposition processes accelerated if they are handled correctly. One of the most popular treatment techniques is vermicomposting, whereby the decomposition of organic matter becomes food for worms that live in a wormery, a very simple device. The final result of the wormsâ&#x20AC;&#x2122; job is humus, which helps to assure that the land will be more fertile and nutritious. The attention destined to organic material cannot be inferior to the care given to recyclable materials. The due separation and disposal of material is necessary, and can even be carried out in households by means of specific containers for each type of waste and with the installation of home composting systems â&#x20AC;&#x201C; these actions can become another business opportunity for the Brazilian entrepreneur.

VALUED PROPOSAL Promoting technological solutions so as to adequately dispose of organic wastes generated by other companies, following three main guidelines: based on the ecologically correct, economically profitable and socially responsible

CONSUMER RELATION Companies that look for their services are considered partners – Organoeste assures the traceability during the entire process

Organoeste, from Campo Grande (MS), collects organic wastes for composting of the food industry, soft drink factories, freezers, restaurants and agribusiness activities. The product sold to those companies is organic compost, an agricultural input created from materials that many companies wrongly consider to be garbage, disposing into the environment without the due worry. In order to maintain a business that profits with the preservation of the environment and with the reduction of third party wastes it is important to keep an eye on what is the most modern technology, partnering up with the University of São Paulo (USP), which collaborates with quality business management and with scientific research in the area of microbiology. On the other hand, another company, Ecosecurities, helps Organoeste with the management of carbon credits.

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GOOD TO KNOW It is possible to make natural fertilizers from manure, the waste resulting from the composting process. This may be another item for you to invest in and offer to the market. The distribution of biofertilizers is regulated by the Ministry of Agriculture, as per decree no. 86,955, of February 18, 1982. The aforementioned decree imposes a number of procedures that the biofertilizer producer must follow, such as the adequacy to the product’s chemical composition standards, which will be subjected to inspections from the competent organisms, as well as permanent technical assistance from a certified professional to assure the product’s quality. The entrepreneur that is interested in this segment must request an authorization before the Ministry of Agriculture – the license is valid for five years and may be renewed at the end of this period.

Anaerobic digestion, biogas production and energy production AN EYE ON OPPORTUNITY

Production of biogas for the generation of electric energy D Generation of electric energy D Adequate disposal of organic and animal waste D Production of biofertilizer D Production of organic compound

Which segment can I offer my services to? Municipalities – by means of the implementation of biodigesters in municipal landfills –, rural and industrial properties

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STAY TUNED

There still aren’t any legal mechanisms that guide the sale and use of biogas in Brazil, but there are businesses that use this resource, saving on gas and light bills and contributing to the environment. In Santa Catarina, many swine breeders also use swine manure for the generation of gas.

Biogas is a source of natural energy. It results from the anaerobic digestion, a breathing process of microorganisms that occurs in the absence of oxygen, mainly releasing the fuel gas methane (CH4) through a digestion processing of animal and vegetal matter. In induced and controlled processes, with the usage of anaerobic digesters or the so-called “biodigesters”, the natural process may be reproduced, generating therefrom methane gas that can be used as fuel for boilers and engines, being converted into energy and carbon dioxide. Household, industrial and agricultural activities are potential sources for the generation of energy, if directed to a biodigestion or anaerobic digestion processes, given that great part of the solid waste generated by men has vegetal or animal origin. In relation to the industry, this can be carried out with waste arising from the food and paper production, in the cities, by means of the reuse of household wastewaters and other organic waste and, in agriculture, with the reuse of swine, bovine and poultry effluents or wastewaters. The production of biogas may mean an opportunity for your business to advance. With a biodigester, you will be able to produce gas, generate biofertilizer and even adequately dispose of organic and animal waste you produce.

GOOD TO KNOW Methane is 21 times more pollutant than carbon dioxide. Correct management of organic residues means directly reducing the impacts on atmospheric pollution and on climate changes, by appropriate collection and treatment of the gases generated and by intelligent use of sources of natural resources.

Production of biogas in sanitary landfills and controlled landfills The generation of biogas in sanitary landfills and controlled landfills is possible, reducing environmental liabilities in the treatment of waste and also using the gas as a resource. With the decomposition of solid waste in landfills, methane gas, one of the biggest sources of atmospheric pollution, is released, but

with the implementation of an adequate technical project, known as biogas drainage system, the collection and storage of such gas for the generation of heat and energy is possible. From the fermentation and production of biogas there are still organic residues that may be used as compound in agriculture.

Itaipu, production of biogas and rural producers In terms of energy generation, Itaipu Binacional is the biggest hydroelectric plant in the world. Around 17.3% of the energy consumed in Brazil and 74.5% of the Paraguayan energy arises therefrom. Ever since the 90s, with the UN’s alert on the trend of displacement of bovine production from the northern hemisphere to the southern hemisphere, Brazil started to think that it could participate in this production chain, so as to reduce environmental impacts. The use of biomass for the generation of electric energy is one of the vital points of this process. Biomass is all organic and animal matter capable of enduring processing. The solution found by Itaipu was to stimulate the implantation of biogas systems in rural properties in Paraná, seeking the treatment of organic waste and the generation of energy to subsidize their own production. Today, several producers already have similar systems implanted in their properties. Another business niche that has proved to be viable is the sale of

electric energy. A swine producer of São Miguel do Iguaçu, in Paraná, receives, on average, R$2,500 a month from the sale of the exceeding energy generated on its own property to the state’s electric energy distributor, Companhia Paranaense de Energia Elétrica (COPEL). Furthermore, the production of biogas assures 100% of its property’s consumption, which results in monthly savings of approximately R$8,200. With the production of biofertilizer, residue arising from biomass decomposition process, saving up to R$1,500 a month is possible. Another source of revenue generated by the non-production of greenhouse gases is the commercialization of carbon credit, with an estimated return of R$4,000 per year. A series of benefits generated by the production of biogas are verified. In Paraná, this segment contributes to the strengthening of local economy because it resulted in the creation of new projects’ needs, technical training, environmental licensing and manufacture and sale of equipment for the production of biogas.

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Recyclable AN EYE ON OPPORTUNITY

Collection, processing and commercialization of recyclable material Which segment can I offer my services to? Public organisms, communities (houses, condominiums, residents associations, among others), companies, schools, commercial establishments and universities

Sale of equipment, devices, EPIs and containers for the individualization of material by type Which segment can I offer my services to?

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Public organisms, communities (households, condominiums, resident associations, among others), companies, schools, commercial establishments and universities

GOOD TO KNOW

Network strategies or the constitution of second degree cooperatives (that unifies at least 3 single cooperatives) were incorporated by recyclable material collectors in an attempt to reach the recycling industry. Based on joint sale, it is possible to attain a minimum quantity demanded by the recycling industries and obtain better prices at the time of sale.

Amongst the wastes classified by the National Policy for Solid Waste (see chapter 1.2), many have recyclable potential, that is, they may be transformed into secondary inputs and, consequently, new products. As mentioned before, the National Policy for Solid Waste institutes the principle of shared management, whereby public and private actors, as well as the civil society, are all responsible for the adequate disposal of solid wastes, referring the materials that may be recycled to separation stations and triage.

Separation and triage stations The business chain of recyclable materials starts with the production of consumer goods, followed by the generation and subsequent disposal of solid waste. If the product cannot be reused, the best path is to separate and store the solid waste, destining it to some recycling system. What fuels separation and triage stations are the recycling materials gathered in the collection stage. The stations have five main areas: discharging of the collected material; separation, triage, pressing and storage. The administrative area is also essential, given that it is responsible for the internal management process and collection logistics, contacting suppliers, partners and clients, as well as coordinating activities with cooperators and contributors. For the feasibility of collection services, processing and sale of recyclable materials, it is essential that the business is well structured, with specific equipment, such as presses, belts, scales and forklifts, as well as other devices (such as gas cylinders and storage bags). Moreover, every employee, during the execution of the activities at the separation and triage stations, must use personal protection equipment (EPIs) The commercialization of containers that store individualized materials (paper, glass, metal and plastic) is also a niche to be explored: companies, condominiums, schools, public offices and several other premises have interest in buying such products.

Read more on the National Solid Waste Policy in chapter 1.2

VALUED PROPOSAL Generation of income and formalization of recyclable material collectors’ work in the municipality of São José dos Campos

PARTNERSHIPS THAT MAKE A DIFFERENCE Cooperativa Futura maintains a services’ covenant with the local municipality, being responsible for the operation of Voluntary Delivery Locations (PEVs) and handling of organic matter for the production of manure resulting from the municipality’s pruning wastes

Created in 2005, Futura was the first Brazilian cooperative to obtain the SA 8000 certification, issued by international organisms for featured ventures related to social responsibility. This certification means that the cooperative’s members have all rights duly respected, but it also means that they started making more money: before, they sold the kilo of recyclable material for, at most, 18 cents – with the AS 8000 this value more than doubled. The cooperative also offers courses for literacy to collectors, that, besides having a guaranteed monthly source of income, they also immensely contribute to São José dos Campos’ quality of life, removing around 130 tons of solid waste from the city’s streets every month.

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Cooperatives as a business alternative for the entrepreneur Work cooperatives are constituted by people with common professional interests, where all members are seen as partners with equal power of decision, making this an ideal form for entrepreneurs willing to act in a horizontal and collective way. The collection and triage of recyclables’ segment by cooperatives is on the rise in Brazil, especially

after the approval of the National Policy of Solid Waste. The Federal Government recognizes the performance of over 1,100 collectors’ cooperatives nationwide: being responsible for collection, triage and directing of waste to recycling industries, cooperatives have leading roles in the recyclable waste management scenario.

Processing and recycling industry AN EYE ON OPPORTUNITY

Processing and recycling of aluminum, paper, plastic and glass, as well as the sale with the corresponding industries Which segment can I offer my services to? Cooperatives and other collection and triage of recyclable material companies

Sale of equipment and machinery to processing and recycling industries Which segment can I offer my services to?

Selective collection and triage consist on the first two stages of the recycling chain. In order to be recycled, the material needs to have specific characteristics, obeying a series of rules so that the industry may recycle it, given that several compositions may be created with one material. Plastic, for example, is divided into six different types – PET, PS, high and low density PE, PP and PVC. The processing of materials is the final stage of the recycling process, creating another business opportunity for the entrepreneur. Processing and recycling industries function under the same logic as that of an industrial commercial establishment, with the stages of processing varying in accordance with the entrepreneur’s focus: you might want to work with all of the recyclable material categories or one specific type.

Processing and recycling industries and sanitary landfills

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Sebrae promotes cooperatives and associations in Santa Catarina

The Government of Santa Catarina, by means of the its Economic and Sustainable Development State Office, in partnership with Sebrae – SC and with the BNDES, created and is implementing the Green and Supportive Economy, an initiative that, through technical and financial support, will promote the work of dozens of catarinense entrepreneurs. The production units selected are cooperatives and associations of collective production that generate work and income through solid waste management – such as, for

VALUED PROPOSAL Creation of a high quality product and providing differentiated consumer relation, focusing on after sales.

INNOVATION IN THE USE OF RESOURCES Using recycled resin as their main input

example, the Artists and Artisans Association of Rural Producers of Campo Alegre, contemplated by the program due to the usage of wastes resulting from plastic bottles, textiles, milk cartons, cans, newspapers and timber in the production of artisanal artifacts. The program oversees a total investment of up to R$20 million. Each one of the 43 chosen enterprises will receive up to R$300 thousand, whereupon they will have to invest such amount on physical space reforms, purchase of equipment, real estate, among other short and long-term

The city of Apucarana, in Paraná’s countryside, is known as the national cap capital. Nevertheless, not always did the entrepreneurs behind Saneabas contribute to such an important national title: at the beginning, the business sold sewage pipes – and was called Sanetubos – but in 2002, they decided to change the segment of their activity, change their name, but they didn’t even think about changing the raw material: they maintained the same old input, recycled plastic. Today, Saneabas became a touchstone when relevant to processing and recycling. The company buys plastic directly from industries that acquire the material by means of collectors’ cooperatives. As soon as the plastic arrives at Saneabas’ headquarters, duly cleaned and milled, it goes through a process of extrusion, a technique used to give a specific form to plastic, in this case, the form of caps’ flaps.

improvements. In addition to the financial support, Sebrae will be responsible for executing technical and financial feasibility studies of each investment, develop new products with added value, train the staff, execute actions for the insertion of the products in new markets by means of access to fairs and business gatherings, as well as provide consultancy in business management, aiming towards the improvement of environmental and logistics management procedures. In total, the initiative will directly benefit 1,427 people with an average of up to three minimum wages.

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AN EYE ON OPPORTUNITY

Sanitary and controlled landfills operation: integrated management of solid waste D Installation and operation of solid waste treatment centers D Collection and transportation of solid waste

Consultancy services for preparation of technical projects of installation and operation of sanitary and controlled landfills D Preparation of technical projects on landfills’ infrastructure, daily and monthly operation, and exploration of soil layers as covering materials, among others

Which segment can I offer my services to?

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Public organisms and public managers of sanitary and controlled landfills

Consultancy services for preparation of carbon credit projects D Environmental consultancy services for the conception of carbon credit projects of Mechanisms of Clean Development (MDL) in the context of methane gas capture for the production of biogas

Which segment can I offer my services to? Public organisms and companies belonging to the carbon market

ENVIRONMENTALLY ADEQUATE FINAL DISPOSAL OF UNSERVICEABLE MATERIALS Sanitary and controlled landfills The National Policy for Waste Management indicates that the environmentally adequate disposal of waste must be limited to the following options: reuse, recycle, composting, recovery, energy use or final disposal, which must be restricted to tailings, also called unserviceable materials. Controlled and sanitary landfills are the final destination of unserviceable materials. The controlled landfills are composed of layers of tailings that are covered, at the end of each stage, with inert material (non-reactant). This method is more harmful to the environment, given that the base is not waterproofed – which may compromise the water table – and the leachate (composition of liquid that is produced in the process of decomposition of garbage with rainwater that are mixed in the landfills) is not treated. Sanitary landfills may also use layers of rejects composed by inert materials, yet, unlink controlled landfills, the base is waterproofed, guaranteeing a safe confinement for waste, which reduces environmental pollution and protects public health.

VALUED PROPOSAL Generate integrated and innovative solutions on socio-environmental needs, as well promote social actions and programs focused on sustainability

CONSUMER RELATIONS Stimulates partnerships with clients, providing professionals to accompany the waste management activities and carrying out periodic researches to measure the degree of consumer satisfaction

PARTNERSHIPS THAT MAKE A DIFFERENCE Marca Ambiental carries out partnerships with Sebrae-ES for the strengthening of Incubalix, incubator of micro and small businesses that develop recycling solutions

Marca Ambiental was one of the pioneers in the treatment and final disposal of solid waste in the state of Espírito Santo – the company was the third approved project by the Ministry of Science and Technology to sell carbon credits in Brazil. After investing in technology and innovation, it obtained the ISO 9001 certification, which guarantees high quality work in management processes. Today, Marca Ambiental is not only a capixaba reference, but also a worldwide reference, having been recognized as the first Technological and Ecobusiness Park of Brazil. The first sanitary landfill of the state started to operate due to the company’s works: currently, the site receives over 1,500 tons/day of waste generated by cities and companies that, before, did not have means to adequately dispose of their wastes.

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STAY TUNED The Brazilian Solid Waste and Public Cleaning Association (ABLP) affirms that the construction and operation of sanitary landfills is a promising niche. Due to the new waste law, by 2014 all dumps in the country will be closed. In order to substitute them, around 256 regional sanitary landfills will need to be built and 192 small sized sanitary landfills, with an investment of around R$2 billion.

Co-processing AN EYE ON OPPORTUNITY

Consultancy for business management on co-processing for companies D Business management in co-processing (market strategies; business management and monitoring, for example) D Development of solutions for waste disposal by means of co-processing

Which segment can I offer my services to? Cement, pharmaceutical, chemical, tires and other industries that generate hazardous wastes with potential use in co-processing

Collection, transportation and co-processing services of hazardous wastes Which segment can I offer my services to? Establishments that generate infecting, industrial or chemical waste

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The technique of final disposal by co-processing consists on the destruction of waste in a definite way, having as its main advantage the prevention of environmental impacts. The waste may be reused as fuel, as carried out by cement industries, which use their waste in the generation of energy that fuels boilers that produce cement. Between the wastes that may be co-processed are resins, glues, latex, tires, rubbers, wood and contaminated soils, solvents, chemical and pharmaceutical industry wastes, as well as treated urban solid waste. Most of the aforementioned wastes can be characterized as dangerous, making the environmentally adequate final disposal even more important.

PARTNERSHIP THAT MAKES A DIFFERENCE Votorantim Cimentos is fundamental in the process of final disposal carried out by Centroeste Ambiental. After the co-processing of residues, the mass generated is forwarded to Votorantim that uses the inputs as fuel in the factory’s boilers for the production of cement

Centroeste Ambiental acts in the management and treatment of hazardous waste segment, whether infectious, industrial or chemical. In the first years of functioning, the lack of information in relation to hazardous waste, also called class 1 waste, was such that, aside from the company having a hard time finding clients, it also generated suspicion from those approached by the entrepreneurs. Today, the situation is very different. The approval of the National Policy for Solid Waste increased supervision and environmental awareness for Centroeste Ambiental’s business. The Policy was approved in 2010 and, in 2012, the number of Centroeste’s clients had already grown by 200%, reaching 1.5 thousand hirers from Mato Grosso today – the company is the only one to co-process class 1 wastes in the state.

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AN EYE ON OPPORTUNITY

Reverse logistics and integrated management services of RSU D Preparation of logistics study D Planning and management of collection centers D Collection and transportation of collected wastes for disposal (phases of pretreatment and treatment D Installation of processes and operation of waste treatment centers with the usage of separation and grinding techniques for recycling and composting

Which segment can I offer my services to? Companies, sellers, distributors and public organisms that need to carry out reverse logistics

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LOGISTICS In order to talk about logistics it is necessary to address management of supply chains. This context encompasses the management of installations, physical, financial and information flows, from the producer of inputs utilized by the company until the final disposal, post-consumption. The logistics is part of the management of supply chains, takes into account the implementation of processes in the collection, separation, transportation, treatment and/ or final disposal stages. Each type of waste requires a specific logistics procedure, with different degrees of citizen involvement. For the micro and small entrepreneur, a range of opportunities opens, mainly in relation to the reverse logistics operation, a series of procedures that must be adopted for all commercial segments.

Urban Solid Waste (RSU) In the Urban Solid Waste logistics three stages may be considered: pretreatment, treatment and disposal of unserviceable materials. Pretreatment includes processes of recycling of wastes capable of transformation and of grinding, techniques complementary to that of recycling and composting, which allows the reduction of the materialâ&#x20AC;&#x2122;s volume, leading, also, to the decrease in transportation costs. This mechanism is mostly used in cases involving glass, tires, construction and demolition wastes (RCD). In this phase, reverse logistics presents itself as a tool for the definition of actions, procedures and means of enabling collection and restitution of solid waste. The treatment and disposal stages, some of the technologies available for non-recyclable waste, are: composting, incineration and co-processing for final disposal of RSU, the most advisable end is sanitary landfills.

VALUED PROPOSAL Investment in the glass reverse logistics chain, assuring that all collected packages are returned to their manufacturer. This generates income to the collectors of recyclable materials that work part of the system: separation, triage and processing of materials

PARTNERSHIP THAT MAKES A DIFFERENCE Engaging of the glass chain – clients (bars, restaurants and night clubs), distributors, cooperatives of collectors and recycling industry

In Portuguese, the name of the multinational company DIAGEO’s program means glass is good and that is exactly the intention of the project’s proposal: invest in reverse logistics to show the importance of recycling in a social setting, benefiting collectors; and, in an environmental setting, returning glass bottles to the production cycle so as to generate new bottles. The program occurs in partnership with DIAGEO’s clients (bars, restaurants, night clubs etc.), distributors, collectors’ cooperatives, and recycling industry. The idea is that such clients store the glass packages that will be directed to cooperatives, which will grind wastes. The milled material (shards) is used by the bottle manufacturer, Owens-Illinois, quickly reinserting the material back into the market. The Program intends to change Brazilians’ relation with the material. Today, according do CEMPRE – Businesses’ Commitment to Recycling, only 47% of glass produced in Brazil is recycled – Glass is Good itself has recycled over 3 thousand tons of the material.

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Opportunity in the prevention of fires in waste stations The number of fires in waste separation and storage stations draws attention from those who work in such area. Many establishments don’t even have the due prevention and firefighting permit issued by fire fighters. In 2007, 3,462 fires on scrap businesses and other establishments in São Paulo were registered, with emphasis on the vulnerability of the sites that work with paper and plastic. Thus, you

will be able to contribute to the decrease of this scenario and with the regularization of these procedures, offering fire prevention services, and also, support to the installation of CIPAs, that is, internal committee for accident prevention. Sell and accompany the installation of security equipment, such as smoke detectors and fire extinguishers can also be interesting services to offer to other businesses.

Industrial Solid Waste (RSI) AN EYE ON OPPORTUNITY

Consultancy services on planning, management and integrated logistics of RSI D Preparation of technical projects for the implementation, management and monitoring of the activities carried out in industrial landfills D Specialized transportation of RSI. For such you will need collector vehicles and transporters such as compactors, as per ABNT Resolution no. 13,221

Which segment can I offer my services to? Companies, sellers and distributors that generate industrial waste

Cleaning of tanks and storage boxes used in the industrial process Which segment can I offer my services to? Industries

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Conama established a national inventory of industrial solid waste (RSI), which consists on a set of information on generation, main characteristics, storage, transportation, treatment, reuse, recycling, recovery and final disposal of RSI generated by Brazilian industries. For the transportation of RSI, it is necessary to fill specific documentation, which may vary according to the state where the venture is located. There are four methodologies for the treatment of final disposal of RSI: industrial landfills (similar in structure to the sanitary landfill, but it receives wastes generated exclusively by industries), bioreactor, (process implemented in landfills for inducement of acceleration of waste decomposition process), incineration and co-processing. It is essential that those responsible for the activities that generate hazardous wastes, including RSI, hire a specialist to evaluate the flow of waste generation, providing guidance, also, regarding the most efficient and environmentally safe final disposal methods. A business that generates hazardous wastes must always keep an eye on the cleanliness of its equipments and storage boxes used during production, in order to prevent the contamination of new products. Thus, cleaning of tanks and boxes in the industrial process is another opportunity for the entrepreneur. For such, you will have to obtain a license issued by the local environmental office.

VALUED PROPOSAL To be the biggest and best waste management company in the Amazon region, preserving the environment through the education of collectors, clients and society as a whole

CONSUMER RELATIONS Maintains a relation that extrapolates commercial interests, stimulating environmental education of its clientele

Paz Ambiental offers services for collection, transportation, treatment and final disposal of hazardous wastes. Patrícia Paz, the entrepreneur behind the business, worked as a dentist when she was fined for the irregular disposal of the waste that she currently prevents from contaminating the environment. By noticing the lack of companies that help other businesses deal with such issue, she decided to create her own business. The first agreement executed by Paz Ambiental was with the Municipality of Vilhena – in 2010, Patrícia was awarded with the Sebrae’s Businesswoman Award.

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Reverse logistic for lubricating oil In the state of Rio de Janeiro and in the city of São Paulo, the company enabled to promote reverse logistics for packaging that contain lubricating oil (hazardous waste) is Suatrans Resisolution. This initiative is of the lubricating oils’ manufacturers’ responsibility, in

partnership with the Public Prosecutor Office, environmental offices of certain states and the sector’s corresponding labor union, which is included in the National Policy for Waste Management as one of the segments that must present a reverse logistic proposal.

Civil construction and demolition Waste (RCD) AN EYE ON OPPORTUNITY

Consultancy services on reverse logistics, management and sale of RCD D Preparation of logistic projects and studies, implementation and operation of units for transshipment areas, triage, grinding, recycling and final destination D Commercialization of recycled aggregates

Which segment can I offer my services to? Companies, sellers and distributors that generate RCD

Civil construction and demolition wastes (RCD) are usually deemed to have low levels of hazard. Their impact is due mainly to their volume and the fact that, many times, organics and hazardous wastes are indiscriminately found mixed with RCD. As in other cases, RCD management responsibility falls on the generator that must observe the law and technical regulations related to adequate collection, triage and recycling procedures. The civil construction and demolition waste recycling markets are on the rise. From their recycling, several products may be created, such as blocks of concrete for sealing, graveling for street pavements, underlayment and drainage material, slope stabilization, benches and tables for plazas and parks, covers for culverts, pipes for sewage, among several others.

3.1 GOOD TO KNOW

Storage of civil construction waste can be a big problem, both for households and for commercial and industrial establishments. In the USA, a special bag was developed, with an ideal size and being resistant enough to avoid risking being ripped easily. The entrepreneur that decided to bet on this type of products will be pioneers in this segment in Brazil

VALUED PROPOSAL Multiply and operate civil construction waste recycling units and sell recycled aggregates as a profitable and efficient business model

PARTNERSHIP THAT MAKES A DIFFERENCE Collectors’ cooperatives, Brazilian Association for Recycling of Civil Construction and Demolition Waste (Abrecon), Housing Office of São Paulo (Sehab) and Metropolitan Housing Company of São Paulo (Cohab)

The Rescue Station is a national reference in management and final disposal of civil construction and demolition wastes. The company possesses five units, two in São Paulo and other four spread out across Minas Gerais, Goiás and Pernambuco – all of the headquarters have a landfill for waste treatment, operating from the sharing and standardization of each landfills’ processes. Around 95% of the material that is treated by the Station is transformed into recycled aggregate and reverted back into construction sites as sand, crushed stone and gravel.

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Soliforte’s entrepreneurs saw, in the enormous quantity of waste generated by the simplest civil construction, a business opportunity. The company recycles this material, executes the due processing and, thereafter, sells for a low price to the market, without compromising the product’s quality. With the milling and screening of brick and tiles tailing and concrete waste, it is possible to create other products that are also very useful in civil construction, such as sand, crushed stone and gravel. Soliforte removes waste from the environment in order to return it to the same production chain that it was generated from, using the least amount possible of raw material.

VALUED PROPOSAL Assure clients’ and partners’ satisfaction by means of creative and innovative solutions with the best services and products, respecting the environment and acting in a sustainable way

Health Services Wastes (RSS) The guidelines on the generation and handling of Health Services Wastes (RSS) are designed by two organisms: National Agency of Sanitary Surveillance (Anvisa) and the National Environmental Council (Conama). The RSS may be divided in the following groups: Group A wastes compatible with the presence of biological agents that, due to their characteristics, may present risks of infection; Group B wastes that contain chemical substances that may present risk to public health or to the environment, depending on their characteristics of inflammability, corrosiveness, reactivity and toxicity; Group C any materials resulting from human activities that contain radionuclide in quantities exceeding the exemption limits; Group D wastes that do not present biological, chemical or radiologic risks to health or to the environment, equalizing them to household wastes; Group E needlestick or scarification. The separation and packaging of these wastes must be executed at the place where they are generated. For the collection and transportation of RSS a specific proceeding is required: at the moment of collection, the waste generators must hand in the Waste Transportation Manifest (MTR), the Emergency Record and a copy of the Certificate of Approval of Disposal of Wastes of Interest (Cadri). After the compliance with these bureaucratic requirements, the waste must be forwarded towards the RSS treatment unit, where two methods may be employed, the thermal procedure, which uses high temperatures for the destruction and inactivation of pathogenic microorganisms, and the chemical process, which uses chemical oxidants for waste disinfection.

AN EYE ON OPPORTUNITY

Consultancy services on RSS integrated logistics management and logistics D Preparation of logistics study D Planning and management of collection centers D Collection and transportation of gathered waste for final disposal

Which segment can I offer my services to? Companies, sellers and distributors that generate health services wastes

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Electronic Solid Waste (REEE) AN EYE ON OPPORTUNITY

Consultancy services on reverse logistics and management of REEE and commercialization D Preparation of logistics study D Reverse logistic services (collection, dismantling and triage) e REEE management D Commercialization of inputs for supply of the production chains of electronic materials

Which segment can I offer my services to? Companies, sellers and distributors that generate REEE

Reverse logistics services and management services for non-traditional waste such as fluorescent lamps, products with aerosol, among others Which segment can I offer my services to?

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Companies, sellers and distributors that generate this type of waste

What happens to lamps

Brasil Recicle contributes in the state of Rio Grande do Sul with the development of treatment solutions for fluorescent lamps. In 2009, the municipality of Igrejinha hired Brasil Recicle for the adequate collection and recycling of discarded lamps by public organisms, allowing glass and aluminum recycling, treatment and decontamination of mercury and phosphor powder.

The electronic solid wastes are composed of parts and pieces of devices that have reached the end of their life cycle or which have been discontinued. The management of REEE includes the identification of their generating sources, followed by the collection and storage of waste. Subsequently, preprocessing must be executed, which involves a test, dismantling, separation, compacting and packing of pieces. The last step of the process is of disposal, whereby the waste might be reused, reconditioned and recycled. Few companies act in the development of solution, treatment and recycling of non-traditional materials such as fluorescent lamps, batteries and aerosol. The high risk of environmental contamination brought forth by the incorrect disposal of such products makes the creation of new businesses in this area urgent.

VALUED PROPOSAL Use reverse logistics and recycling in order to offer a trustworthy collection and disposal of electronic waste service for companies and for society

INNOVATIVE CHANNELS In Otser’s website there is a tab called Collection Scheduling. By means of a quick and simple form, the internet user provides his contact information, his location and list of which products he would like collected from his company

Otser’s work consists in collecting and treating electronic waste, storing parts of devices in its headquarters until final disposal is ready to be conducted: companies specialized in this type of recycling purchase waste and deliver them back to the market, as raw materials. In spite of these activities carried out by Otser be relatively simple, consisting basically in the dismantling of devices, there is a large volume of work: there are 30 tons every month and 98% of this total ends up being reused in the future. During the three first years of activity, the venture grew 410% and the creation of the National Policy for Solid Waste will only strengthen even more this segment, creating fertile ground for the propagation of other similar companies around Brazil.

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Government targets recycling ten million refrigerators One single refrigerator has, on average, 40 kilos of metal, 20 kilos of several types of plastic and another 10 kilos of other materials. Based on this variety of waste that make up the device, the National Electronic Product Manufacturers’ Association (Eletros) and the Federal Government created a refrigerator exchange program. The main goal is to exchange all refrigerators that were manufactured before 2001, or those more recently

manufactured that do not have the “A” label (identification form, by the National Program of Electric Energy Conservation, of devices that present maximum level of energy efficiency). Oxil, one of the few Brazilian companies that carries out this type of dismantling, has already recycled over 30 thousand refrigerators – the government’s goal is to reach ten million units, offering a financial reward to those that reach such number.

Technical drafting of PMGIRS

Creation of environmental education programs

S O L

ORGANIC

I Zerogarbage programs

D U

CONSUMERS / CITIZENS

R B A

UNSERVICEABLE

3.1

P R O D U C T S

N Intermunicipal consortium solutions for solid waste management

A S T

Waste management planning

COMPANIES

= BUSINESS OPPORTUNITY

RECYCLABLE

INDUSTRIAL CONSTRUCTION HEALTH ELECTRONICS

Composting

Production of biogas for electricity generation

Management of composting systems Selling composting kits and accessories and biofertilizers

Carbon credit projects

Sanitary and controlled landfills

Preparation of Implementation and operation of technical projects

Coprocessing

Management consulting firms for business

Cooperatives of collectors Operating reverse logistics, transportation services and segregation units

Partnership with cooperatives

Companies of processing, recycling and production of consumer goods

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Marketing of inputs for application i and/ or production industries

Processing and recycling new business

Other business Collection of post-consumption recyclable materials in condominiums and building complexes

3.1

In big urban areas, condominiums are responsible for the generation of a large volume of recyclable materials. There is a lot of room for entrepreneurs in this sector, especially for companies that intend to carry out collection and management of waste, not only for buildings, but also for bars, restaurants, commercial centers and others. The concepts of programmed obsolescence and perspective help to understand how fast the disposal of electronic products occurs, stimulated by the consumption of more attractive products. One of the oldest raw materials used in computer monitors and television screens is lead, an ore that may be prejudicial if inadequately discarded into the environment. Today, few are the companies that recover and recycle lead, creating room for new business in this sector.

Financial consultancy and protection

For small business or companies owners of the recycling sector, it is valid to count with the work of financial market specialists. Due to the oscillatory price dynamics, a specialized assistance can allow the entrepreneur to anticipate or delay certain transactions, for example, this practice is very used by the Brazilian steel industries. Opening a consultancy in this area may turn into a new business opportunity.

Diesel supply

Traders

It is common that companies possess huge fleet of trucks, some with over 50 vehicles. Each route requires large amounts of diesel and companies do not commonly by in wholesale. For gas station owners and distributors there is a business niche in relation to execution of agreements for loyalty for exclusive supply to diesel to trucks.

The recycling market has as a pattern the instability and oscillation of market prices, given that its dynamic is constantly affected by the international market: paper, ferrous scrap and aluminum are very sought after products in Asian countries, for example. The need for businesses that connect the seller and buyer is high, hence, specialized consultancy is a market to be explored.

Tire recycling The collection and recycling of unserviceable tires is another segment on the rise in the country. Since 1999, Brazilian tire industries carry out environmentally correct disposal â&#x20AC;&#x201C; in 2007, Brazil was just below the United States in relation to the use of tires, with revenue of R$ 5.6 billion. According to the Brazilian Tire Treading Segment Association (ABR), half of the tires used are repurposed due to the surfacing of technologies such as ecologic asphalt, manufactured through milling rubber.

Textile recycling Of the 26 thousand companies that currently act in the textile sector, few know what to do with the generation of tons of postindustrial and post-consumer waste, creating that a great volume of this type of waste end up in sanitary landfills and dumps. This segment needs solutions and studies that guide the construction of reverse logistics strategies, connecting the generation to the potential points of reuse of textile waste.

Electronic tracking In the logistic process of waste, the truck is one of the main tools for an operationâ&#x20AC;&#x2122;s success. Many companies, especially those that work with recyclable materials, do not possess a fleet tracking system. The information control in real time guarantees more efficiency and safety â&#x20AC;&#x201C; sale and installation of electronic tracking devices for trucks is another area with huge potential to be explored by new ventures.

Blasting with glass Blasting with dry sand, a technique used by companies to clean, engrave or restore surfaces, was forbidden in 2004 given its potential to harm the environment and human health. As of such regulation, blasting with glass has been tested in the market and is currently considered the main substitute for dry sand. For those who already act in the recycling chain, this alternative is another business opportunity.

opportunities Revaluation of electronic scraps

Wood for agriculture and furniture

In Brazil, no technology for the extraction of the noble part of electronic scraps exists. Part of the waste that is not recycled within the Brazilian territory is sent and processed in Asian countries. Entrepreneurs with resources and disposition to massively invest in this sector have great potential for quick growth.

The collection and treatment of batteries in Brazil has only one initiative worth mentioning, which represents only 1% of the potential presented by the market. Increasingly, retails chains are seemingly more interested in having collectors for the storage of these materials.

Burning wood in bakery ovens or in industrial boilers and the use of sawdust in livestock are different ways of post-consumer disposal. Among the sectors that reuse or recycle wood, another segment shows growth potential in Brazil: furniture manufacture with recycled wood. The rise in this field is mainly due to the increase in the supervision and awareness regarding prevention of use of native wood. Between 2007 and 2010, the Brazilian Wood Panelsâ&#x20AC;&#x2122; Industry Association (Abipa) estimated an increase from six to ten million cubic meters of recycled wood in the country, amounting to an investment of approximately USD 1 billion.

Copper

Plastic wood

Brazil produces 50% of the copper is consumes: the other half is obtained through recycling or imports. Searching the obsolescence of this material in other places and resell it nationally may be a good strategy, given that copper is considered a safe, high liquidity investment.

It is possible to obtain same quality as conventional wood using plastic. The development of this type of product is on the rise in Brazil: one of the few companies that execute this activity affirms that their production capacity falls short of the demand.

Sale of insurance

Machinery maintenance

The Brazilian market still does not have insurance companies specialized in the sale of insurance connected to waste solid management. Besides insurance for truck and vehicles, these companies require the same service for their storage units, operations and machinery, in general.

The Brazilian market for services that are specialized in preventive maintenance of machinery is very incipient. The preventive control of presses, conveyors, forklifts, trucks and other equipment used in the processing of waste brings, as a bonus to the entrepreneur, cost reduction and guarantees in the production efficiency.

Recycling of batteries

Marketing consultancy Many waste triages, processing and recycling stations are unknown in the market. This problem is due to the lack of investment in communication strategies. Marketing and advertising agencies may take advantage of this fact, offering innovative proposals to these important waste management social actors.

Outsourced transportation Maintaining a fleet for the management of waste requires a high level of investment and working capital to finance the activities. As a form of cost reduction, some companies have chosen outsourcing: offering this type of service to other businesses may be an interesting business opportunity.

Composites The input used in the manufacture of tiles, automotive parts, pipes and pools (amongst others) is the composite, a material that contains glass fibers and plastic resin. Recycling of this product is so necessary, and the techniques are so incipient, that the Brazilian Composite Industriesâ&#x20AC;&#x2122; Association (Abmaco) was willing to find technological resources that enable postindustrial disposal. In partnership with the Institute of Technological Research (IPT), a study was carried out in order to find an appropriate end to 13 thousand tons of waste that are directed to dumps every year. Thanks to this research, some solutions were created, but this is still a sector with a lot of room to be explored.

3.1

3.2 Biodiversity and businesses: life as raw material Society already awoke to the issue involving the environment and, now, governments and companies are following such trend. The scenario demands new ways of doing business and opens a range of unprecedented opportunities, connected to 74 sustainable use of biodiversity

A NEW VARIABLE IN THE WORLD OF BUSINESS Changes in public policies towards sustainability are notable. Companies and industries are being transformed, consumers are more demanding and, increasingly, global trends point to a transformation in the economic development model: business can no longer be carried out without considering the environment as an essential and scarce resource. In a near future, the impact of the use of biodiversity and of the ecosystems will be economically accounted for, starting to be included in the business strategies of those companies that aim to stay in the market for the longterm. In order to find out how to include your company in this new scenario, look for specialized entities, such as Sebrae, which possess a series of booklets with practical tools for the incorporation of sustainability related differentials into your business.

BUT, AFTER ALL, WHAT IS BIODIVERSITY? The term biodiversity â&#x20AC;&#x201C; or biological diversity â&#x20AC;&#x201C; describes the abundance and variety of the natural world. Plants, animals and microorganisms supply food, medicine and good part of the industrial raw material consumed by the human being. The vast Brazilian territory covers several climate zones â&#x20AC;&#x201C; such as the humid tropical climate in the North, the semiarid climate in the Northeast and temperate climate in the South. Evidently, these climatic differences lead to great ecological variations, creating different biomes: the Amazon Forest, largest tropical forest in the world; the Brazilian Pantanal (swamp), largest floodplain; the Cerrado (savannahs) and woods; the Caatinga of the semiarid forests; the fields of the Pampas and the tropical rainforest of the Mata At-

GOOD TO KNOW In 2010, the UN released a report called “The Economics of Ecosystems and Biodiversity”, presenting calculations that estimate the negative impacts of three thousand companies in the planet’s natural resources. The result of the estimate is scary: 2.2 trillion dollars in loss, in only one year. This figure represents the debt caused to global society with the damages caused to environmental assets, such as loss of biodiversity, water and air pollution, climate regulation, among others.

lântica. Besides this, Brazil has a sea coast of 3.5 million squared kilometers, which includes ecosystems such as coral reefs, dunes, mangroves, lagoons, estuaries and swamps. The variety of biomes reflects the immense abundance of the Brazilian flora and fauna: Brazil houses the greatest biodiversity in the planet, being the first on the list of “megadiverse” countries. Biodiversity occupies a very important place in national econ-

GOOD TO KNOW There are 17 countries in the world that are considered megadiverse, given than they house the majority of animal and vegetal species on Earth. Brazil is the first of this list, with 20% of the world’s fauna and flora species. As sources of innumerous raw material and climate regulators, these territories have incalculable value to humanity.

Located in Maracanaú (CE), Natural Wax is an industry that produces carnauba wax, an abundant palm in the Brazilian Caatinga, predominant ecosystem in such region. Known as “tree of life” by the locals, carnauba’s leaves produce a wax that avoids loss of water, extremely precious resource given hinterland’s droughts. This wax is of great commercial interest, being used as raw material for the production of papers, lipsticks, varnishes, soaps, vinyl records and other items With a set of actions that promote both social responsibility and commitment to the environment, Natural Wax has become a reference in the sustainable exploration of the hinterland’s biodiversity. The carnauba wax is extracted by hand, benefiting thousands of small producers that act in the harvesting and processing of the wax. At the same time, part of the revenue is directed to an association that promotes actions for the conservation and education of such biome’s sustainable use. Thus, at the same time as it explores a natural resource, the industry invests in maintenance strategies for the ecosystem and for the communities that reside therein, assuring future demand of the raw material. Also, the venture uses natural gas as fuel, reducing greenhouse gas, in comparison with sources commonly used by industries. One of the points of emphasis is that the company found creative ways to capitalize such actions in consumer relations: every 5,000 kilos of wax sold, Natural Wax adopts a hectare of Private Reserve of Natural Heritage of Serra das Almas (Reserva Particular do Patrimônio Natural Serra das Almas), located in Crateús, in Ceará, issuing a “certificate of maintainer of the Brazilian Northeast Caatinga” on behalf of the client. Hence, the company strengthens its valued proposal as friend of the environment, besides solidifying its relation with consumers.

3.2

75 75

AN EYE ON OPPORTUNITY

Biodiversity as raw material Some products of the Brazilian biodiversity have been gaining ground in the market, other still require technologic research and development. See some opportunities that you may look for in your region: D Non-timber forest products are excellent alternatives for the sustainable use of the forest: baru, Brazil nut, babassu and carnauba palm are abundant species with diverse uses; D Regional and exotic fruit pulps may be commercialized as ice cream, jellies and other types of sweets; D Oils such as andiroba, copaiba, babassu and nuts are increasingly used by the food and cosmetics industries; D Duly handled wood serves as raw materials for civil construction, furniture and utilities; D Bio-jewelry made from seeds and other natural assets; D Sales of seeds for planting and reforestation

Which segment should I offer my services/ products to?

3.2

Each of the aforementioned opportunities acts in a specific niche of the market. Follow the success cases presented in this booklet and get inspired!

STAY TUNED

The access to genetic resources of the Brazilian biodiversity is regulated by the Provisional Measure no. 2,18616/2001, considered by specialists as inadequate to the stimulation of research and development of businesses. The Brazilian government is working on its review, with the intention of turning it into a clear, objective law that induces investment. This news should bring even more business opportunity in this sector, promoting the ethical and sustainable use of biodiversity through the fair and equitable distribution of benefits. The theme is strategic for Brazil’s sustainable development in the generation of values and conversation of biodiversity.

omy: the agroindustry answers for nearly 40% of the Brazilian GDP, while the forest sector has 4%. Biodiverse products answer for 31% of the Brazilian exports. Nevertheless, despite all of Brazil’s biodiversity and its notable economic potential, to this date, the vast majority of production activities are based on exotic species and unsustainable activities such as monocropping of soy, sugarcane, orange, eucalyptus, among others. In this sense, the Brazilian government is investing its efforts in stimulating the preservation and sustainable use of biodiversity. Since 2002, the National Biodiversity Policy is instituted, with a series of guidelines and goals that aim to stimulate research and development of economic alternatives in this sector. Along with this positive political scenario in Brazil, we saw the world market for biodiversity products grow. Increasingly, consumers are concerned with companies’ relation with the environment. For the micro and small business owner with an eye on opportunity, this context may and should be taken advantage of. Biodiversity offers a broad range of new possibilities, previously little – or not at all – explored, which you may occupy with creative and unprecedented ideas.

THE FOREST CODE AND THE ENVIRONMENTAL ADEQUACY OF RURAL PROPERTIES The text of the new Brazilian Forest Code instituted the Rural Environmental Registry (CAR), an electronic register of national scope mandatory to all rural properties. The CAR is the main tool highlighted in the new environmental law for the conservation of the environment and the environmental adequacy of

GOOD TO KNOW The Convention on Biological Diversity (CDB) is the first legal instrument to assure the preservation and sustainable use of natural resources. Over 160 countries signed the treaty, which entered into force in December 1993.

The importance of biodiversity in the national economy

40% of Brazilian GDP comes from agroindustry

31% of Brazilian exports are related to biodiverse products

It is usually said that this palm can be completely used. The leaves of the babassu are used to cover houses and for animal feed. The fibers are used in the productions of baskets, screens, mats and other handmade artisanal products. Its stem is used in woodwork and as natural manure. It is, also, possible to extract palmito (heart of palm) and, from the stalk of the young palm, a sap that produces wine. The green almonds supply milk with nutritious properties, similar to those of the human milk, greatly used in local culinary. From its mesocarp, a very nutritious flour is extracted. The main function of the almonds is the production of babassu coconut oil, greatly used in the cosmetics, food, soap, detergent, lubricant industries, among others. The extraction of almonds is traditionally homemade, carried out by local populations, the so-called â&#x20AC;&#x153;coconut bustingâ&#x20AC;? population. Its oil has a high rate of saponification, the highest of vegetal oils in industrial use. And there is more: the endocarp is used to make a high calorific coal. In addition, the hard shell of the babassu coconut can also be used for the production of ethanol, methane, fuel gases, reactivated carbon, acetic acid, tar, all of great industrial use. Through searching for partnerships for research and development, Tobasa BioIndustrial, company from TocantinĂłpolis (TO) conquered revolutionary advances in technological aspects in the exploitation of babassu. By identifying the main issues in the production processes, Tobases invested in the development of adequate machinery for the breaking of coconut, overcoming traditional and inefficient techniques. Also, by means of technological innovations, it was able to reach a high quality standard for activated carbon, above the competition. The company is also holder of the first babassu alcohol distillery at an industrial level in Brazil, turning into a success story in what regards to efficiency and integral used of raw material.

See the booklet made by Sebrae and Imazon with tips regarding good practices in forest and agroindustrial handling

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Originally called Frutos do Cerrado, the ice cream shop came up with the proposal to rescue the flavors found in that Brazilian Biome and, at the same time, assure that nature was valued by means of the biodiversity of natural products. Soursop, guava, hog plum, cagaita, pequis, acerola, gariroba, blackberry, murici, mutamba...the product portfolio is a real tribute to rich Brazilian biodiversity. The initiative was successful. The search for products increased in such way that the brand stopped being regional, bringing forth not only the Cerradoâ&#x20AC;&#x2122;s richness, but also with the variety of flavors of the several Brazilian biomes. Also, the ice cream maker started to segment the products â&#x20AC;&#x201C; a line of light and another of premium products, with special ice cream. Frutos do Brasil is an example of how a small business with market vision can grow, generate profit and still adopt sustainable practices. In one of the factories, in Goiania, on average, 17 thousand popsicles and 1.2 thousand liters of ice cream are produced per day. Commercially, the company is present in seven states and in the Federal District, having its products distributed in over 80 stores and kiosks. Currently, Frutos works in a franchising systems and its expectation is that in the next years the brand reaches international markets. The company maintains a rigorous policy of waste control both in the production process and in the consumer communication. The fruitsâ&#x20AC;&#x2122; seeds are donated to planting and reforestation initiatives, the shells discarded in the production process of the ice creams are also used, this time, as organic manure. The company focuses on working with suppliers that are concerned with the environment: the popsicle sticks, for example, only use wood arising from reforestation. The popsicle packages are made of biaxially oriented polypropylene, a material less aggressive to the environment and printed with water-based and non-toxic paint. Also, Frutos do Brasil does not set aside social dimension, promoting small familial farmers awareness on the maintenance of springs and sustainable plant extraction practice.

The registration will not be considered title of ownership or possession, aimed only at environmental adequacy

properties. This will enable a greater control over the compliance of the environmental law and support the compliance of national and international objectives for the maintenance of native vegetation and the ecological restoration of ecosystems. The CAR also facilitates the lives of rural property owners who hope to obtain environmental licenses, since the proof of the property regulation will be through the inscription and approval of CAR and the fulfillment of the provisions in the Environmental Regulation Plan, without the need of previously mandatory proceedings, such as the registration in the real estate records of the Legal Reserves. All proceedings for this regularization can be done online. The information found in the CAR will be cross-referenced with images obtained through satellites and, in this way, it will be possible to identify what a farmer planted, what area a cattle breeder occupied, the deforested and preserved areas, those that naturally regenerate and those which were recovered. To register your property, the property owner needs to prove his ownership or possession and present a blueprint and description of the land. These documents include the location of the remaining native vegetation, the Permanent Preservation Areas, the Restricted Use Areas, consolidated areas and, if needed, the location of the Legal Reserve.

The new demands brought on by the environmental legislation will require that municipal managers have the ability to close partnerships to train their technical teams. In Mato Grosso and Pará, cities such as Lucas do Rio Verde (MT) and São Félix do Xingu (PA) are counting on the support of environmental organizations (Instituto Socioambiental and The Nature Conservancy), who train prefectures’ technicians so they will be able to act on environmental adequacy in rural properties, with emphasis on the restoration of legally protected areas, such as the Permanent Preservation Areas (APPs) and Legal Reserves (RL). Lucas do Rio Verde and São Félix do Xingu are already quite advanced in the registration of properties. The municipalities respectively have over 50% and 80% of their properties registered in the Rural Environmental Registration (CAR) – which is the first step to environmental adequacy.

3.2

AN EYE ON OPPORTUNITY With the evolution of the environmental registration of rural properties, the demand for raw materials for forest restoration must increase, especially seeds and seedlings of native species. In this case, the clients can be both individual property owners and municipal management. State policies could increase the incentive for forest restoration, as is the case of the Green Municipalities program, from the state government of Pará, which lists the criteria and incentives for the environmental adequacy of the locations with passive deforestation.

The CAR inscription will enable access to the benefits anticipated in Federal Law 12.651/2012, with emphasis on: D Regularization and suspension of past sanctions; D Credit on lower taxes and access to agricultural insurance; D Lines of financing along with the financial institutions to support voluntary preservation initiatives of native vegetation; D Exemption from taxes for the purchase of the main raw materials and equipment used in the rural properties in the projects for the recuperation and maintenance of the Permanent Preservation Areas and of the Legal Reserve.

FOREST RESTORATION AND LEGAL RESERVE AS PRODUCTIVE ACTIVITIES

3.2

Often confused with the planting of commercial forests, forest restoration’s objective is restoring the original biodiversity and the complex interrelations of the native ecosystem. It involves the gradual reconstruction of the forest, rescuing its biodiversity, ecological function and sustainability throughout time, determined through the use of various different species, including other forms of life aside from trees (herbs, bushes, vines, fauna, among others).

With the advancement of Brazilian environmental legislation, which will mandate the environmental adequacy of rural properties, the number of forest restoration initiatives must increase, requiring human resources and materials for its execution. This forest restoration practice has been treated as an instrument of rural properties’ environmental assets’ regularization, when the areas for economic exploitation were opened without any type of planning that aimed to safeguard the environment. Hence, the mandatory legal reserve area is, many times, a target of neglect by rural owners that, in reality, long to clear the forest in order to amplify their production areas. It is necessary to change the focus and keep up with the Brazilian environmental legislation advances with an entrepreneurial eye, capable of identifying apparent restrictions with a universe of new opportunities. Legal reserves do not need to be seen only as restrictions imposed by the law, but also must be planned as sustainable production areas. Currently, forest restoration emerges as an instrument capable of supplying alternative uses to the soil and generate different perspectives for the economic use of unproductive areas in rural properties. That is, forest restoration brings forth new horizons towards diversification of the property’s economic activities and generation of additional sources of income, by means of plantation

In accordance with the law, Legal Reserve is an area located within a property, limited by the necessity to assure the economic use of the sustainable natural resources of the rural property, help with the conservation and rehabilitation of ecologic processes and promote the preservation of the biodiversity, as well as shelter and protect the wildlife and native flora. The size of the reserve varies in accordance with the profile and location of the property

AN EYE ON OPPORTUNITY

The areas of legal reserve or of low agricultural aptitude of rural properties may be used, with a long-term view, as plantations for forest species of economic interest. In these plantations, the species must be strategically identified so as to optimize financial return, in accordance with the entrepreneur’s natural conditions and aptitudes. Native and exotic timber species, fruit species and mixed use species must be combined (that combine with the use of timber and other subproducts, such as hay, nuts, oils etc). Technical support entities, such as regional Embrapa, may offer this guidance in relation to models and methods of cultivation.

In São Paulo, a company found in the production of seeds and seedlings the pathway to enabling a profitable business that also contributes to the environment. Florestando is dedicated to the collection of native seeds for the production of seedlings for permanent preservation areas (APP) and legal reserves. Besides positioning itself in a niche that has little competition, Florestando got ahead by creating innovative products that nobody else offers: the so-called forest plugs and live acorns. The live acorn is a combination of seeds, soil and compost, which protects the seeds and

allows an ease in planting, without the need to dig or bury – all you have to do is throw the acorn in the chosen area and wait for the next rain, from which the seeds will start to sprout. They are an excellent tool for planting and educational activities with young children and with the youth. Forest plugs are plantlets for seedlings’ producers, another unexplored segment: the plugs innovate by bringing the plantlets’ roots in substrate, in plastic boxes that facilitate transportation and transplantation. The producer has the guarantee of less time in the seedlings’ hatchery.

3.2

Deforestation: multiplelosses The natural removal of native vegetation, process commonly known as deforestation, followed by the implementation of agricultural activities devoid of appropriate management practices (reposition of nutrients, rotation and culture diversification) results in the quick exhaustion of the soil’s production capacity, in addition to being exposed to the weather. The combination of unprotected soil, added with the exposure to sun and to rain allows the land’s particles to be washed into rivers, streams and pounds, triggering soil erosion processes and siltation of bodies of waters. Together, these two processes may lead to depreciation of rural properties, reducing

the value of lands, provoking the reduction of soil fertility, caused by loss in the quality of water. When all of these aspects are taken into account, it is clear that deforestation is really bad business, generating several losses to the owner, which are, many times, irreversible. The problem is that these effects are not immediately perceived, but in mediumterm – that is why many rural owners are still triggered by the promise of the immediate result that deforestation may bring, may it be through sale of timber, livestock or crops. For the entrepreneur that thinks about the future of his business, the long-term vision cannot be disregarded.

Consumer: increasingly aware, increasing demanding This message comes from the 2013 Biodiversity Barometer, a research carried out by the Ipsos Institute, at the request of the Union for the Ethical Biocommerce. The results indicate that consumers are increasingly more aware of issues such as species’ preservation, traditional knowledge and fair trade between companies and communities. The consumer trend in developed countries – and even in emerging countries, such as Brazil and China – is the desire to know more about the origin of the natural inputs used in large scale in cosmetics, food and pharmaceuticals industries. And more: those who buy this type of products are starting to reject the brands that do now respect biodiversity.

3.2

67%

of the world’s consumers have already heard about biodiversity in the last five years

In Brazil, 96% of those who responded to the research are aware of the issue of biodiversity. The total number of correct definitions given to biodiversity grew between Brazilians. In 2012, the percentage was of 48%. In 2013, this rate went up to 51%.

models, located in unproductive areas within the property, as is the case of areas of low agricultural aptitude and legal reserve.

REDD MECHANISMS – REDUCTION IN CARBON EMISSIONS FROM AVOIDED DEFORESTATION The topic of greenhouse gases is well known when related to ecology and sustainability. As it is known, industrial, agricultural, transportation and electric energy industrial activities are great polluters of the atmosphere and the main cause are the gases that are emitted, specially methane and carbon dioxide. The excess in these toxic gases are allegedly the cause of the ozone layer hole and of global warming, triggering a series of environmental problems worldwide. Thus, the importance of reducing the concentration of these gases in the air was noticed – this is no easy task, given that most part of industrial activities are major polluters. The worry regarding this topic grew and some countries signed international treaties committing to the reduction of their emissions. From this discussion, with the advancement of combination between the economy and the environment, new ideas regarding forms of payments for initiatives that reduced or avoided carbon emissions surfaced, offsetting the emission of polluting activities. Also, calculations for capture of carbon started to be made, that is – if an entrepreneur plants a forest that will grow and consume carbon from the air as it develops, he will be helping to reduce the gases from the air, and can be paid for it. It is a new economic logic, having its terms debated in interested forums, involving civil society organizations, managers and communities and there is still a lot to advance in this sector, especially in Brazil.

Signed 1997, the Kyoto Protocol was joined by 84 countries

In the forest restoration business, one of the pioneers is Redes de Sementes do Xingu. This unification composed by familial farmers and indigenous groups emerged in 2007, as a response to the growing demand for seeds for reforestation in the Xingu region, caused mainly by the national reach the Y Ikatu Xingu campaign had. Experience has shown that it is possible to create a viable business model based on the collection and sale of seeds for forest restoration. The great accomplishment of this initiative was gathering, in a decentralized network, 350 seed collectors and 25 organizations from over 20 different municipalities. In order to organize such a broad group in an efficient way, it was necessary to find management solutions capable of contemplating logistical challenges, as well as the rich social and cultural diversity of those involved In the network, the collectors organize themselves into groups that form the collectors cores with different social organizations , profiles and motivations . Despite specifications that differentiate the core, the dynamic collection, processing, storage and marketing are standardized to facilitate the work of all and ensure quality to the end customer. Each group or core has a leader, called “ link”, whose basic functions record and disseminate the experience in the network, manage inventory, collect the orders and control the quality of the seeds of their group . In Rede’s website, it is possible to check the seeds that are available for delivery and also do online orders – a practical and efficient way to approach customer relations and optimize sales. Prices vary from species to species, reaching up to R$ 200 per kilo. The results speak for themselves. Since 2007, the number of collectors involved increased from ten to 350. Consequently, the volume of seeds hopped from 5,000 kilos in the first year to the astonishing 25 annual tons today. The network sells approximately 200 different types of plants and, in 2012, achieved net revenue of over USD400 thousand, having doubled profitability in relation to the previous year. Since 2010, another innovation was incorporated into Rede’s operations: a microcredit fund began offering small loans, making it easier for producers to purchase tools, supplies and other implements used in their activities. The Rede de Sementes do Xingu is a concrete example of how initiatives for environmental restoration stir the business of biodiversity, generating economic development at the same time as they are planting tomorrow’s forests.

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STAY TUNED Currently, discussions regarding REDD and Environmental Services are in a very dynamic moment, with debates both regionally and globally taking place all the time. Revisions to current laws are planned and should take place soon – check if the information provided in this booklet are the most current, given that new opportunities may arise at any time.

Although it still depends on further progress in the consolidation of the legal framework, there are ongoing experiments that show that this is a viable path. The most relevant case is currently in the state of Acre, which has attracted international media interest with the proposal of a new model of development based on REDD economy. The Acre REDD provides for the implementation of six pilot areas that start to have preferential treatment, receiving incentives to avoid deforestation and generate carbon credits that can be commercialized. Acre’s goal is to reduce emissions by 60 million tons of carbon in 15 years. Acre’s government hopes that this effort means close to USD400 million in contributions to the State.

3.2

take their share of responsibility. This is the logic behind the payment system for forest environmental services. Forestry activities compete, in physical space, with agricultural activities and, due to the characteristics of long-term and low immediate profitability relevant to this activity, forests have been converted into areas of agriculture and livestock. Therefore, instruments as set forth in Draft Law no. 792/2007, which provides for the definition of environmental services, are creating conditions for economic feasibility of environmental purpose activities, such as forest conservation or restoration of degraded areas through reforestation.

PAYMENT FOR ENVIRONMENTAL SERVICES (PSA) The payment or compensation for environmental services aims to transfer monetary or non-monetary resources to communities, families or owners that help to conserve or generate services of public interest, based on the natural resources that are essential to life. The conservation of native forests and the planting of new forest are still identified by researchers as the only way to remove atmospheric carbon particles emitted by excessive burning of fossil fuels and by fire. On the other hand, the cost for forests’ conservation cannot be absorbed exclusively by the rural population: everyone must under-

21%

of foreign tourists choose their destination due to ecotourism options

NATURE AS AN ATTRACTION: BUSINESS OPPORTUNITIES IN THE TOURISM SECTOR It is undeniable that tourism is gaining more ground in global economy, turning into one of the main economic activities and accounting for 10% of the world’s GDP. According to the Ministry of Environment, the ethno-cultural demonstrations, the way of life, the communities’ hospitality and the beauty of the natural scenery put Brazil as one of the world’s most promising markets for the development of ecotourism, with high potential for income and sustainable business generation. Although 62% of Brazil’s land consists of native coastal vegetation, being nearly 7,500 kilometers long, this niche is still considered underexplored. According to research from International Tourist Demand of the Ministry of Tourism in 2012, only 21% of foreign tourists choose their destination due to the ecotourism options. The very concept of ecotourism is centered on the idea of contributing to the conservation of ecosystems and establishing a situation of gains for all concerned parties: if the resource base is protected, the economic benefits associated with their use will be sustainable.

GOOD TO KNOW Ecotourism and sustainable tourism are not the same thing. While the former refers to the client’s motivation – the ecotourist travels in search of responsible experience with natural biodiversity, sustainable tourism is a set of principles that can be applied to any field of tourism wishing to conform to environmental quality standards.

AN EYE ON OPPORTUNITY D Being an activity that must carefully consider its impact on the environment, avoiding excessive customers’ flows, ecotourism becomes an especially interesting segment for micro and small business. The reduced scale appears as the most suitable model for the activity, not only ensuring the conservation of ecosystems of interest, but also the quality of the tourist experience. If you want to invest in this sector, know your target audience background. This type of tourist usually enjoys closeness to nature and to local communities, preferably in small groups, for a more intense and prolonged interaction. In relation to services and infrastructure, they tend to opt for comfortable facilities that are simple and consistent with the environment in which they are in. D The representation and organization of environmental education activities can be a business opportunity inspired by the landscape and the natural resources of your municipality. Nature trails accompanied by educators, species identification and nature watching are some of the potential activities that can be offered to schools, as studies of the environment, or to companies, through therapeutic experiences and other dynamics, promoted by the human resources sector. D Food is an inherent demand to any tourist activity. In the segment of ecotourism, according to guidelines of the Ministry of Tourism itself, there is a public preference for regional food that expresses the environmental, social and cultural repertoire that fits the tourist experience. Offering meals with typical regional dishes, delivering sweet and savory snacks that tourists can take on trail, bringing forth typical fruits’ flavors through candies, juices and ice creams are just some of the many opportunities in food products and services for ecotourists. Just using typical ingredients is not enough to be “eco”- it is essential to adapt the production processes, using without wasting biodiversity resources and avoiding products that are not natural. The presentation of the dishes and products must also be consistent: avoid excess disposable packaging, for example, and use your creativity to decorate with natural materials such as hay and leaves.

3.2

STAY TUNED In November 2012, the Federal Senate’s Committee on Regional Development and Tourism passed a bill establishing the Fund for Promotion of Employment Generation in Ecotourism (Fungeco). The Fund’s resources may finance programs and training and qualification activities for the development of activities aimed at ecotourism, awareness of the population located in protected areas, national parks visitation and actions for disclosure of ecotourism in Brazil. The Fund may be a good partnership for entrepreneurs interested in investing in the sector.

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Acolhida na Colônia was created by a group of familial farmers of Santa Catarina, who were inspired on a simple and innovative concept of ecotourism. The 180 families who compose the association use the eco-agrotourism to enhance the way of life in the field. Thus, farmers open their homes to tourists, sharing their culture, their stories and their landscapes. The accommodations are simple and welcoming, with conversations nearby firewood stoves, cooking with typical foods, and country walks. Farmers are fans of organic cultivation, ensuring healthy food for visitors and contributing to the regions’ ecological balance. The initiative has evolved with time and today there are already five destinations in different regions of Santa Catarina to choose from, each with its own peculiarities: cycling routes, horseback riding, water sports, hiking and environmental education activities. These accomplishments did not come from the association’s isolated work: building partnerships was essential to pave this path, with Sebrae, the Ministry of Tourism and a number of national and international organizations excelling in a wide range of partners who contributed to consolidate the venture. Acolhida na Colônia collects a number of awards and media appearances, with a steady stream of tourists, who serve as important complement of income for farming families.

In order to learn more about this segment, see some essential characteristics of ecotourism ventures: D Management, protection and conservation of natural resources: adopting strategies to minimize possible negative impacts resulting from tourist visitation. Special care in protecting natural resources in Conservation Units; D Business and visitors’ flow range: in general, ecotourism occurs in small and medium-sized properties, with a reduced tourist flow. Regardless of the size of the equipment, it is important to consider the environment’s ability to support a number of visitors without suffering a significant environmental change; D Landscape: the landscape is a tourist appeal itself, which gains more importance in this segment given that the atmosphere of preserved sites are the tourists’ main motivation. Infrastructure, equipment and services should have minimal impact on the landscape. Physical structures should be enhanced by natural lighting and ventilation, and solar-based water heating equipment can minimize

BIODIVERSITY BUSINESSES Usage of raw materials such as fruits, oils, nuts, collection of seeds and production of seedlings; planting of hardwood trees; ecotourism â&#x20AC;&#x201C; the possibilities brought forth by nature for sustainable businesses are innumerable

PRESERVATION STRATEGIES Include the creation of protected areas, the sustainable forest handling and the payment for environmental services provided by the preserved forest

CLIMATE CHANGES Brazil stocks in trees 20% of the planetâ&#x20AC;&#x2122;s carbon. The country may become a model and benefit with projects that economically reward the maintenance of its biodiversity

LOSS OF BIODIVERSITY Most part of devastation takes place in tropical forests, rich in biodiversity and important economic resources, such as wood

3.2

THE IMPORTANCE OF FORESTS

Native forests are essential for the maintenance of water, a warranty of raw material

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Despite currently being one of the most famous tourist destinations in Brazil, until recently the city of Bonito, in Mato Grosso do Sul had barely any structure to receive the few tourists who came to visit it: until the early 90s, the city had three tourism agencies and not even ten hotels . The region’s natural beauty was the same as today, but getting to it was much more difficult, given that Bonito is located far from major urban areas. With time and the stabilization of the Brazilian economy, highways of the Pantanal region began to be paved and the demand increased, culminating with the inauguration of the Bonito Regional Airport in 2005 . The volume of tourists has increased in parallel with the city’s environmental awareness was awoken. In Bonito, the places that attract tourists due to their ecological peculiarities have a limited number of visitors per day. What could be seen as a limiting factor is seen as a way of perpetuating the beauty – and tourism – on site. Some key milestones in the city’s history of environmental responsibility were the creation of the sewer system in 2007, and the landfill established in 2005, which replaced the dump that accumulated the city’s waste indiscriminately. Recyclable materials are managed by the local community, bringing a new source of income to families in the region. Today, 56% of Bonito’s workforce is directly linked to tourism. The data elucidates how the implementation of a sustainable management model is beneficial to a city’s population: between 2000 and 2009 the city’s GDP per capita increased 242%. Between 1991 and 2000, the Human Development Index (HDI) grew from 0.675 to 0.767 and infant mortality was reduced by 47%. Sebrae has collaborated with the consolidation of this sustainable power since the beginning. In 1993, the organization structured a course of Specialized Tourism Guide of Natural Attractions, forming the first group of 30 accredited city guides. The following year, Sebrae held a seminar to discuss what was the type of tourism that public managers and the population wanted for the city – it was due to this event that, one year later, the Municipal Tourism Council of Bonito was created . In November 2013, the World Responsible Tourism Awards elected the city as the best destination for responsible tourism in the world. The main reason for the award were electronic vouchers, a system that performs a digital record of tourists in order to control the amount of visitors at each tourist spot.

energy consumption. The buildings should seek to strengthen the elements of local identity from the architecture to the decor, prioritizing raw materials and local crafts. Authenticity, simplicity and rusticity are features that appeal to this public: seek to strengthen the identity of the local community, using elements of architecture and decoration which use or are inspired by raw materials and local craftsmanship. The appreciation of traditional techniques of the region may also contribute to the generation of employment and income the local population.

GOOD TO KNOW In Brazil, the first studies on ecotourism refer to the 1980s, when the Brazilian Tourism Institute (Embratur) initiated the Projeto Turismo Ecológico (Ecological Tourism Project), creating, two years later, the National Technical Commission, but it was only in the following decade, with the United Nation’s Conference on Environment and Development – ECO-92 – that this type of tourism has gained visibility and boosted quick growing market trend. The Earth Summit and Agenda 21, documents developed in ECO-92, were important contributions to defining the guidelines of National Ecotourism.

3.2 STAY TUNED Sebrae and the Chico Mendes Institute for Biodiversity Conservation (ICMBio) will work together to promote ecotourism and to improve National Parks’s infrastructure in 13 states and in the Federal District. These actions are part of a cooperation agreement signed by the two institutions, aiming to insert small businesses into that supply chain. The partnership was born from the realization that basic infrastructure to cater to tourists in many of the beautiful Brazilian landscapes is lacking, as is the case in certain parks and reserves. Demands for cafeterias, restaurants, parking and tours can be met by small entrepreneurs interested in contributing to the sustainable development of their city through tourism. If your municipality is located nearby national or state parks, or close to other types of Conservation Units with areas of tourist interest, this can be a good investment, while the country prepares to witness a significant increase in the number of tourists.

3.3 Financing: attracting investments to your business

Venture capital, lines of credit with focus on sustainability, development agencies, cooperatives: discover the best ways to raise funds for your venture

RISK INVESTMENT One form of investment that has been gaining ground in Brazil in the past few years is risk investment. This modality is one of the most recommended for businesses that are giving their first steps, still in search of market consolidation. Know the main forms of investments and the best way to attract them to your business.

Angel Investor Angel investor, or simply angel, is an individual that is willing to provide personal capital to a business that, despite just beginning, already shows certain growth potential. In return, a portion of future profits go to the investor, who usually follows the development of the company closely. Having an innovative design is essential to attract this type of investor: he is especially interested in investing in projects that work with innovation and technology. In a survey conducted by the organization Anjos Do Brasil, 75% of investors consulted indicated a willingness to invest their capital in IT (Information Technology) startups, while 56% would invest in applications for smartphones and 44% in healthcare and biotechnology. The education sector attracts the attention of 38% of investors, entertainment awakens the interest of 35% of those surveyed, and fashion and food businesses, among others, are left with 13% of national preference. Unit 2012, about 6,300 angels had already been involved with projects of micro and small entrepreneurship in Brazil. Typically, the amount invested varies between R$ 50 thousand and R$ 500 thousand.

Seed Capital Seed capital or, in Portuguese, capital semente, is a similar investment to that of the angel, except that the amounts involved are even higher, ranging, on average, between R$ 500 thousand and R$ 2 million. With higher numbers, the risk is also higher, hence, the investor usually gets involved

in more developed stage of the business, with an established client portfolio and well-defined products – but that has not yet reached its full potential in the market. The seed capital can be sourced from a fund with several investors who bet on more than one project at a time, increasing the chances of capital return.

Venture Capital Venture Capital can be considered the third degree of investment risk, since the money invested by investors is even greater and the goals are more ambitious. The capital invested is between R$ 2 million and R$ 10 million and, in addition to accelerating the business’s development, the idea is that in the future one of three possibilities takes place: the sale, merger or initial public offering of the company.

MANY BRAZILIAN BANKS HAVE CREATED CREDIT LINES FOCUSED IN ENVIRONMENTAL MANAGEMENT PROJECTS nances the small business that aims to preserve or recover the environment. The objective is to promote sustainability and competitiveness in the northeastern production chain, be it rural, industrial or in the sector of services.

CREDIT LINES FOCUSED ON SUSTAINABILITY

Banco da Amazônia Amazon’s Sustainable Development Financing Program

With the growing company interest in decreasing the environmental impact of its activities, several Brazilian banks have created a credit line exclusively focused in projects that establish or improve environmental management of micro and small businesses. Check out some of the main credit lines focused on sustainability offered by public and private banks.

This line of credit offers separately to rural enterprises (agriculture, livestock, aquaculture, among others) and non-rural (tourism, agribusiness, trade services, services, technology and industry). Resources should be directed at reforestation, modernization of the physical structure of the enterprise and other necessities to adapt to a more sustainable reality.

Banco do Brasil BB Local Clusters

BANDES – Banco de Desenvolvimento do Espírito Santo BANDES/Sustainable Development

The objective of this line of credit is to supply working capital to small businesses that compose the local clusters chain, that is, initiatives that promote the development of a local community.

Banco do Nordeste Environmental Sustainability Financing Program – FNE Verde By means of the Constitutional Northeast Fund (or Fundo Constitucional do Nordeste), such line of credit fi-

The objective is to support capixaba (Espírito Santo) enterprises that have as goal the improvement of their environmental control practices. Companies that search for the reduction of emissions of greenhouse gases, using recyclable products as raw materials or as materials that exercise a significant role in the chain of reused materials that fit the financing program’s profile.

3.3

How to attract private investors

3.3

The first presentation is crucial. Do not make the investor believe that he is wasting time: the less you cling to technical jargon, the more time you will have to say what really matters and what your business’ differentials are. Be simple and direct – this is the best way for your speech to not sound like stalling, increasing the chances of getting the investor’s attention. Ideally, three presentations should be prepared, one for each type of situation. This way, any necessary adaptation will be easier, given that you will not always be able to choose the conditions in which your project will be presented. The briefest form is the so-called Elevator Pitch, or “elevator speech”, a fast presentation that could take place in case you found a potential investor in an elevator. You must be able to sell your fish in, at most, three minutes and that is the big challenge: focusing on the essential is not an easy task. If your speech counts with a computer presentation, do not use too many slides. The Executive Summary must contain basic information regarding your venture, utilized as a supplementary presentation to the Elevator Pitch: team data, partners and a brief description of the business model. The most complete presentation should be the detailed Business Model itself, with up to 20 slides that must be enough to show the investor that both the idea and the execution have already been planned. There is no point in having an extremely attractive idea if you do not know how to get it off the paper. Besides the idea itself, a business plan is essential, a prototype of the product’s concept and, if possible, a notion of degree of success of your business before potential clients. If your team counts with individuals that possess technical profile – programmers and engineers, for example – it is easier for the investor to visualize how the money will be multiplied in the future. If your business project is innovative, you’ll be ahead, be it the product itself, its form of manufacture, the way in which the products or services are delivered or the business model. Innovation is the main word. Hardly will an investor provide capital in a venture that is identical to several already existing others.

Bradesco CDC – Forest Certificate Valid for enterprises from the entire country, this line of credit is destined to businesses that look for support for the obtainment of the Forest Certificate, a way to attest that the company only uses wood/timber of legal origin, commercialized by producers that comply with environmental law demands.

Santander Sustainable CDC With this financing program, Santander offers credit to the small entrepreneur that needs resources to buy ecoefficient machines and equipment, reducing consumption and waste of energy and water in the company’s production chain.

BNDES Automatic BNDES MPME Investment National Bank for Economic and Social Development (BNDES) possesses a credit line that provides working capital to the micro, small and medium Brazilian entrepreneurs that aims to reform its environmental management methods.

Caixa Econômica Federal Waste Management Caixa Econômica Federal is responsible for the only exclusive financing project for urban solid wastes in Brazil. The program supplies credits for implementation or expansion of processes that take into consideration a chain of environmentally adequate waste management, such as transportation, triage, recycling and final disposal of wastes. In order to request such financing, it is essential for the entrepreneur to be up to date with all environmental licenses.

PUBLIC FUNDING AGENCIES State Public Funding Agencies A funding agency, also known as development agencies, is an interesting option for those who look for their business to be financed. Despite their financial institution status, these organizations operate under a different logic of that of the traditional bank: instead of profit, their main goal is social, economic and environmentally sustainable development of the country. In practical terms, a funding agency grants fixed and working capital associated to projects headquartered in a determined state. Each state can have, at most, one agency, although not all states have a representative.

Research Foundations With the exception of Roraima, all Brazilian states have a Research Foundation, dedicated to support innovative researching. Consult the Foundation for your state in order to be informed on funding possibilities for your state.

FINEP FINEP - Studies and Projects’ Funding – is a public entity connected to the Science and Technology Ministry. Main innovation agency in the country, its support is focused on public and private projects with potential to transform through technological pioneering. In order to obtain FINEP’s funding it is

necessary to be on the look for the organism’s public callings.

FAT Inovacred The resources from the Workers’ Support Funding (FAT) may be accessed by small companies by means of Inovacred, a program from the Federal Government that promotes technological innovation. Companies with annual gross revenue of, at most, R$3.6 million may have up to 90% of their projects funded by the Funding. The idea is to stimulate the sustainable development of small enterprises that are searching for some type of technological innovation. The entrepreneur may request financing in order to acquire and transport machines and tools, execute constructions, buy and develop a software, hire studies and external consultancy, among several other types of support.

Credit Cooperatives An interesting alternative for micro and small entrepreneurs in search of project funding is to join a credit cooperative. This type of organization is recognized by the Central Bank as a financial institution, but its acting niche differs from that of the traditional banks in several aspects, mainly due to the fact that the user is not only a client, but also an owner of the funding entity. Profit is not the cooperative’s main objective (any exceeding capital is redistributed amongst all members) and the costumer services is less impersonal,

BESIDES THE IDEA ITSELF, A BUSINESS PLAN IS ESSENTIAL, A PROTOTYPE OF THE PRODUCT’S CONCEPT AND A NOTION OF DEGREE OF SUCCESS OF YOUR BUSINESS BEFORE POTENTIAL CLIENTS

3.3

Incubators and accelerators

3.2

Besides all the aforementioned funding methods, the entrepreneur has other forms of support that do not involve loans nor interest rates. Understand how incubators and accelerators work and which the best alternatives for your business are. Incubators and accelerators are companies that help other companies to fully develop, be it to jumpstart their operations or to structure them in accordance with market demands. The difference starts in the business model: while the incubator is a non-profit organization and its resource result from public entities, accelerators are maintained by investors that hope to have a quick return. Thus, it is rare for an enterprise to be held under an accelerator’s custody for over a semester, while incubating a project is a long-term process, which may lead to up to a five year partnership. Small companies that are still in development phase, normally founded by people with little business management experience, are the incubator’s public audience. In return, accelerators invest in enterprises that already show potential for quick growth. Accelerators focus in scalable businesses, that is: that may be replicated in large scale without the need to increase capital costs or workforce. Even for this reason, accelerators work with highly innovative companies – if your business is based on traditional economy, without technological appeal, incubators are more advisable.

Funding Sustainability in Micro and Small Companies

Sebrae Booklet Credit Cooperative

thus the member’s specific characteristics are taken into consideration at the time of setting of terms and conditions for the loan, as well have having more simplified bureaucracy. In order to become an member, a monthly contribution to the entity is necessary and both natural persons and businesses of any type and magnitude may enroll.

Microcredit

Sebrae Booklet

At the time of requesting a loan, banks require a series of bureaucratic obligations that not everybody is able to attend to. This is the target audience that microcredit lines aim to. Although people tend to relate this type of fund-

ing with public banks, private entities also provide credit lines for the small entrepreneur: given that interest rate varies from bank to bank, the most recommended proceeding is to go to a bank agency and get informed before your manager. In Brazil, the Central Bank stipulates that microcredit cannot be greater than R$ 40 thousand – depending on the bank, this limit can be lower.

Practical application

4.1 Pause for reflection: is public management in my city sustainable?

Now that you already know how to transform your city’s municipality into a partner of small businesses and of the environment, it is time to stop analyzing which tools are already used and analyze which must be incorporated into your city’s management

The degree of entrepreneurship and of social responsibility that a city has depends a lot in the initiative of each one of its residents, but public management exercises a vital role in this process. As previously described, Federal Government has kept up the global trends of providing support to sustainable development both in national and global scales, but municipalities don’t always have enough money, structure or knowledge to carry out the population and laws’ necessary demands. Check out a compilation of the main policies and laws, accompanied by questions that intend to guide the public manager in this complex and fascinating universe of possibilities created by the combination of entrepreneurship, sustainability and public management.

The General Law for Micro and Small Companies

National Policy for Solid Waste

Besides facilitating credit access and simplifying bureaucracy, the General Law stimulates municipalities to invest in small businesses, but the lack of information – both from the public administration and from entrepreneurs – is still an obstacle to complete execution of these promotion mechanisms.

PNRS intends to revolutionize the way in which the Brazilian society faces its waste. Confirm if your city will be part of this transformation, preserving the environment and generating business opportunities for local entrepreneurs.

Currently, how many contracts does your city’s municipality maintain with micro or small companies? What is the number of micro and small businesses involved in public tenders with your city’s municipality? This question may be asked in another way: how much of the money spent by your city’s municipality in public tenders and purchases was kept with the municipality itself? Municipal public tenders with values up to R$80 thousand are being exclusively granted to small businesses, as per the law? Does your city have a development agent and a entrepreneur office? Does the municipality’s technical team have formal training in order to keep up with the General Law’s requirements for the small entrepreneur?

Did your city’s municipality already prepare the Municipal Integrated Solid Waste Management Plan? Is there any type of composting systems in the urban cleaning services in your city? Does your city have selective collection? Do recycling and collectors’ cooperatives in your city receive any type of support from the municipality? Is there any plan to execute agreements with recycling and collectors’ cooperative? Does the municipality have or plan on having an intermunicipal consortium in order to reach goals established on the Municipal Plan?

4.1

When the municipality needs to acquire products such as tires, lamps, print cartridges and computers, are the chosen suppliers adepts of reverse logistics? The municipality has accompanies the proposal for planning of reverse logistics of the region’s enterprises? The waste generated in the municipality’s buildings is adequately environmentally destined?

City’s Statutes and Master Plan

EcologicEconomic Zoning

With the purpose to fight socio-spacial segregation and assure equal distribution of public services, the Statute must be faced by the public managers as one of the main tools for the city’s organization.

ZEE was created in order to preserve areas of ecologic, social and economic importance, being considered by many the main tool of environmental planning in Brazil. Its operation is similar to the Master Plan’s operations, with the difference that its scale is national and its actions are more focused on sustainable development.

Does your municipality have a consolidated Master Plan and of knowledge to the competent public managers? Is the community heard in debates on urban expansion and occupation? Does the municipality seem open to the population’s participation in the execution of the Master Plan’s guidelines? Does your city’s municipality prepare a Municipal Housing of Social Interest Plan?

4.1

Public managers already requested to the Federal Government access to the National Fund of Housing of Social Interest?

Does your municipality divide its territory in zones, in accordance with protection, conservation and recovery needs of its natural resources and of sustainable development? Is setting limits, restriction and alternatives to the exploitation of areas a recurring practice in your city’s public management? Are incompatible activities relocated? Does a technical analysis prepared by a trained team exist? Is there a formal concern in maintaining the team trained and constantly up to date regarding the topic? Are the zones defined by the natural resources diagnosis, the socioeconomic scenario, and legalinstitutional framework? Is the area’s vulnerability taken into account?

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Environmental Licensing Depending on the case, the three mandatory environmental licenses for the creation of an enterprise that produces environmental impact â&#x20AC;&#x201C; previous license, installation license and operation license â&#x20AC;&#x201C; must be issued by the municipality. It is essential for the municipality to be ready to receive such type of demand. Does your municipality have adequate structure to give - and to monitor the environmental licensing of micro and small businesses? Is there any type of exposure in order to local entrepreneurs to be informed of the possibility to obtain environmental licenses through the municipality? Does the municipality have a technical structure to carry out this type of environmental follow up? Is there a Municipal Council for the Environment that acts with the municipality?

4.1

Do the enterprises or activities that may be licensed by the municipality have strictly local environmental impacts, which do not exceed the cityâ&#x20AC;&#x2122;s limits?

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4.2 Identifying opportunities: how to create an innovative business Entrepreneurs never had so many possibilities to create an environmental and economically sustainable business. Confirm the main planning, management and communication mechanisms for your business to be innovative, as expected by the market and sustainable, as expected by the environment 102

WASTE MANAGEMENT: OPPORTUNITIES AND BUSINESS In the last decades the world started to rethink the way in which economic growth had been developing. Rampant predatory use of natural resources has come to be unviable and global authorities have started to discuss alternatives for progress to take place harmoniously, compatible with the environmental preservation. And more: with the passage of time, it is clear that environmental responsibility does not mean profit less and avoid a tree to be taken down. The question is broader. From a local scale, individuals in their homes and entrepreneurs in their businesses started to understand that reduction of waste, usage of the least possible amount of raw material and the reuse of rejects – to use only three examples – result in creative solutions that may be converted into savings and preparation of different products and services. It is clear that environmental issue is not associated with social issue: the involvement of the local community causes the entrepreneur to know and preserve the origin of its products at the same time as establish an exchange relationship – and not of exploitation – with people that work with and live around the enterprise. This change in local attitude influences and is influenced by the importance that the public sector has started to give to sustainability and other aspects unfolding therefrom, which are inevitably positive for all society’s segments. The National Policy on Solid Waste, as observed in other parts of this booklet, is a great example: by instituting specific guidelines for the management of waste, PNRS generates a large range of opportunities for small entrepreneurs: environmental consultancy, logistics, transportation and waste recycling, commercialization of composter and wormeries, sanitary landfill operations, reverse logistics management systems for several types

of tailings, among various other possibilities – with the advantage that all of these services may be offered both to the public and to the private sectors. Consumers are also protagonists in this new scenario. Increasingly, it is clear that the way in which people acquire products interfere directly in the construction of a socially fairer and more environmentally responsible world, leading companies to promote these two values to move ahead. Because the public manager is also a consumer, constantly purchasing products for the management of the city, public tenders must prioritize sustainable businesses in the moment of creating a partnership, as well as several legal mechanisms to stimulate the participation of micro and small companies in those public purchases: the General Law itself establishes norms in this sense and some municipalities of small cities are already preparing to be totally supplied by services and products commercialized by the small entrepreneur.

BIOMES AND BIODIVERSITY: OPPORTUNITIES AND BUSINESS As seen in chapter 3.2., crafts, in partnership with local communities and without abusive exploitation of nature, are arousing, increasingly, consumer interest. Small businesses from around Brazil are using the new law and Brazilian nature’s abundance in order to grow sustainably and the population wants to be part of this new type of development. Entrepreneurs willing to find in the biodiversity the pathway their business success have a unique opportunity at hand. The unbelievably large variety of fruits and plants found in the Brazilian flora is an opportunity on its own: extraction of oils for the food and cosmetics industries, usage of certified timber for civil construction, sales of seeds for reforestation, usage of fruit pulp

The Sorocaba collectors’ cooperative (Coreso) was founded in 1999, thanks to the support of the city’s Development, Employment and Citizenship Study and Support Centre (Ceadec), which offered technical help in the collection and triage processes. Early in the beginning of its activities, it was clear that the low volume of recyclable materials collected by the collectors would difficult commercialization of waste, forcing a strategic change that lead to a change in paradigms: Coreso e Ceadec started supporting the rise of other cooperatives in neighboring cities, which resulted in the creation of the Rede Solidária de Cooperativas de Reciclagem de Sorocaba e Região (Rede Cata-Vida). Subsequently, after counting with a investment from Petrobras and from BNDES, Cata-Vida was able to buy machinery and trucks in order to install a polymer factory, starting to explore the residual frying oil. Despite the success on the reuse of oil, the cooperatives’ network continued to struggle on behalf of the collectors: at the beginning of 2013, the Solidary Selective Collection Municipal Program was finally implemented. With such project, which was supported by CataVida, the municipality of Sorocaba started to remunerate collectors, formally including them in the city’s urban cleaning processes.

4.2

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for the production of jellies and ice creams are some of the examples of what nature can offer to the entrepreneur. Ecotourism is also an unparalleled business opportunity when relevant to biomes and biodiversity. The concept of this type of tourist visit is an advantage for the small business: given that it involves a small flow of individuals, large companies almost do not have space for acting in this sector. Ecotourism consumer normally leans towards spending time and money in other types of sustainable products, hence, it is worth investing, for example, in the region’s typical meals – and of ecologically proved origin – during these trips. The promotion of activities of environmental education is also a great business opportunity to ally with ecotourism. Trails accompanied by guides can be part of a tourism package when functioning as a separate product, receiving visits from schools and companies.

COMMUNICATION AND SUSTAINABILITY After adapting to the law and adopting sustainable practices in day-to-day business, it is time to say to the world that your company is environmentally responsible. Clients, compe-

4.2

titors, investors and local community: the more people are aware of your attitudes, the more business opportunities will come your way and the more environmentally committed people will be interested in your project. Increasingly, more investors will notice that, by ignoring environmental matters, the entrepreneur can affect their capital return. A business without environmental responsibility is riskier. People, not only investors, but also clients, want to interact with ethical companies that preserve a good institutional image and are ecologically responsible. In a research carried out by the Brazilian Institute of Public Opinion and Statistics (Ibope), 68% of Brazilian consumers affirm that they would pay more for a product that respects the environment. In addition to being a competitiveness differential, environmental concern usually is accompanied by social transformation: reducing waste disposal, adequate treatment of effluents and avoidance of scarce raw material is good not only for the environment, but also for people who live there: local community’s quality of life invariably increases. If your company works with the sale of products, environmental labeling is a great communication strategy. For 36% of Brazilian consumers, a label on the products package is the safest way to assure the product’s sustainable origin. This form of direct communication is considered the most legitimate by the population – annual sustainability reports have only 7% of national preference in the time of deciding if the product is environmentally responsible or not.

ENVIRONMENTAL LABELS AND CERTIFICATIONS

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68%

dos consumidores brasileiros pagariam mais caro por um produto que respeite o meio ambiente

ISO 14000 ISO 14000 is a norm prepared by the International Organization for Standardization, an entity of global

Transparency and Social Control Social control is one of the main tools of citizenship of the population: it is through social control that public management is closely monitored and, in case of entrepreneurship, it is one more way to get informed on business opportunities. The social control mechanisms provided by the government are the most efficient ways to create a bridge between public interest and public managers. Check out the main tools:

Municipal Council

Keen Eye on Public Money

Municipal Council is considered one of the most effective ways of democratic participation in the making of decisions and in the public policies’ debates. In general, half of the council is composed by public managers and the other half by members of civil society, assuring equality in the number of voices heard. Meetings to clarify public expenditure and identify collective demands take place periodically. Head to your local municipality and get informed about these meetings and about the composing of its councils.

The program Keen Eye on Public Money or Olho Vivo no Dinheiro Público is an initiative by the Controller General of the Union (CGU) with the objective to facilitate the access to information regarding expenditure of federal resources. Created in 2003, the project promotes educational events across Brazil, with the intention to train the population in what regards to the public management’s transparency.

Participatory Budgeting Several Brazilian cities possess a participatory budgeting system, a process in which community representatives debate with public managers about which is the best way to direct the municipality’s budgeting. By exposing their main needs, the population ends up defining priority areas for public investment. The meetings are open and serve as an excellent citizenship exercise, allowing the city’s residents to work directly towards improving quality of life.

Online transparency The Internet, today, is the main tool for transparency and social control by the Brazilian civil society. The Transparency Website, or Portal da Transparência, maintained by the Federal Government, is the greatest benchmark on the topic today – the website unites information on expenditures, revenues, agreements and several other financial activities. See other actions that will keep you on the loop over how your tax money is being invested.

Union’s Budget Website Maintained by the Senate, this online gate was developed for the citizen to be able to verify the preparation and execution of budgetary laws and carry out consults to parliamentary amendments, as well as keep up with state, municipal and private entity’s transparency.

Brazil Budget - Supervise Supervise is a action similar to Union’s Budget Website, with the difference that if was created by the House of Representatives. With a quick search engine, it is possible to choose the month, the state and the city and request a report on the flows of any money during such period in the selected location.

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Comprasnet A Federal Government shopping website, of the Ministry of Planning, Budgeting and Management. The idea is that society will be able to keep up with public tenders and purchases processes taken place in a national level.

Public Finances The website was developed by the General Accounting Court (TCU) and allows the citizen to verify the status of the federal, municipal and state public institution’s accounts. It is possible to check reports and consult the public organisms’ accountability.

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Business Model Canvas

HOW?

Before so many challenges and opportunities, the entrepreneur needs to count with practical tools that will help him find inventive and transformative solutions. The canvas business model is a very interesting way: by means of a simple esthetics, it treats a complex topic, helping to organize your enterprise’s management

MAIN PARTNERSHIPS

MAIN ACTIVITIES

Organizations with potential to help in the development of your company, especially in the areas of activities and resources. It may be a technical support entity, such as SEBRAE, or strategic partners such as your city’s municipality.

Essential actions to fully reach the valued proposal. From routine activities, such as collect and crush aluminum cans, until more timeconsuming processes, such as the construction of physical structures.

in the most efficient way possible. By visualizing your business model in one unique image, it is easier for the entrepreneur to identify flaws in the process, map out structural necessities, or even recognize limits and prepare

4.2

strategies to overcome such limitations. The table is divided into nine main blocks – each one of them represented by a vital factor for the success of a company. Be it to create a new business from scratch

MAIN RESOURCES List of resources without which the business won’t be able to deliver the service or product it intends to. It may be relevant to the team, machinery, digital platforms and several other solutions that enable the enterprise’s work.

or to adapt your company to new environmental demands, the panel is a great way to describe and rethink your strategies, besides being an opportunity to sit down with your team and see how each member sees the company. Check out how to develop your own model:

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Source BusinessModelGeneration.com

COST STRUCTURE List all necessary costs to create and maintain the proposed solutions. For example: calculate approximately the cost of payment to service providers, acquisition of resources and do the same for all of the blocks of the panel that imply financial investment.

WHAT?

FOR WHOM?

VALUED PROPOSAL

CONSUMER RELATIONS

CLIENT SEGMENT

The element that will guide all others. Reflect on how your product and services’ package intends to meet your clients’ demands. By synthesizing your business’ main objective, the valued proposal is one of the panel’s key elements.

Ways to build and strengthen the client’s involvement with the company. Channels such as complaints department, customer support department and other formats of customer services are great opportunities to show attention to the client and improve the service provided.

Definition of target audience for your product or service: who do you sell to and who do you want to sell to? Aim at specifying your response – genre, age group, geographical location, social class, habits and interests, among various others aspects. The more you know your public audience’s profile, the more you will be able to adjust your business to meet it with quality.

CHANNELS How does your valued proposal reach your clients? Think of communication and brand dissemination strategies, but also take into account the product’s path to reach the consumer hands – on-line sales, physical store, delivery etc.

What are the main sources of your business revenue? It there a core service or product? These and other questions help define strategies in order for the sum of all these processes converts in an increase of the enterprise’s revenue.

HOW MUCH?

REVENUES

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George Dobré worked in his family’s carpentry business in São Paulo when he took a working trip to Acre. When contacting the exuberant nature from the Amazon regions, he decided to stay and open a timber manufacturing company, combining his experience in the family business with the possibilities the Acre’s forests offered. Thus, in 2006, IIBA – Sustainable Forest Products was born. As the name itself describes, the business’s environmental responsibility is a main concern. The products’ designs – furniture, toys, domestic utensils and many more – vary in accordance with the state which the wood was found in when taken from the forest. Researches show that in many cases the non-use of branches and the disposal of pieces of wood that are not esthetically perfect lead to only 15% of what is extracted from the forest to be used as final merchandise – in IIBA this rate is of 85%. The company installed in Rio Branco, close to handling areas, allowing the entrepreneur to understand the region’s natural and social characteristics. One of IIBA’s collections was baptized Porto Dia, the same name of the community of seringueiros (rubber tappers) that participates in the manufacture of these items. The internal procedures obey forestall handling regulations of FSC certification and several other entities have already recognized the seriousness of the company’s work: in 2006, it got second place for the category of the Chico Mendes Sustainable Business Award, promoted by the Ministry for the Environment, and SEBRAE chose IIBA as the main enterprise for the production of crafts in Brazil by the Top 100 award 2009/2010.

reach that creates international standards for quality. Each country has an organism responsible for the preparation and application of such regulations, and, in the case of Brazil, it is the ABNT – Brazilian Association of Technical Regulations. Within the 14000 series, the main certificate of environmental responsibility for companies is the ISO 14001. In order to obtain such certification, the entrepreneur must follow a series of environmental management guidelines that will identify and control the impact of its activities to the environment. Besides improving your company’s image before the market, the supervisory authorities and the society, if your company has an ISO 14001, it will certainly save on distribution costs, waste management, as well as spend less on materials and energy consumption. It is, therefore, an opportunity to not only certify your environmental responsibility but also expand your business. In order to take notice of the regulations that need to be followed, the entrepreneur must consult ABNT. Because the staff of micro and small companies is usually lean, contracting a consultant may be the best option for the implementation of an adequate environmental management system. After adapting the necessary processes, it is important to hire an independent certifier that will carry out a due diligence before granting ISO 14001. The values involved in the obtainment of a certificate vary from case to case, but specialists assure that the investment is worth it, given that the adequacy leads to a more rational usage of resources and brand appreciation. Check out other labels that can be interesting for your business:

Fairtrade Fairtrade is a concept based on dialogue, transparency and respect to commercial transactions, seeing them as a partnership that is established between producers and consumers. Its proposal consists on the inclusion of processes of purchase and sale of vul-

CERTIFICATION STEP BY STEP STUDY THE REGULATIONS Before beginning the process of certification, the entrepreneur needs to decide which is the most interesting regulation for the sector which his business acts in. after analyzing the different types of certification, he must study the text containing the necessary guidelines. The book with the complete specification usually costs R$50 - refer to the website abntcatalogo.com.br in order to purchase a copy.

GET INFORMED AND GET READY As soon as the certificate is chosen and the procedures for its obtainment are clear in the entrepreneurâ&#x20AC;&#x2122;s head, he must look for a certifier in order to find out how long and how much money it costs for the due diligence to be carried out. Depending on the case, it might be necessary to participate in training courses in order to be prepared for such phase. A pre-due diligence may be scheduled in order to evaluate if the company has conditions to carry on to the final process.

DUE DILIGENCE Before the certificate is issued, the due diligence report must be revised independently. The document will describe the test, which product was tested and what regulation was obtained by the company: one sole certificate may encompass different degrees of coverage and characteristics that must be observed.

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MAINTENANCE A certificate is usually valid through a period of three to five years â&#x20AC;&#x201C; after its expiration, the auditor goes back to the company periodically in order to renew the documentation. In order to certify a product again, it must be directly taken from points of sales or even entire batches can be analyzed in order to assure that the regulation is still being complied with.

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nerable and often marginalized groups, proposing non-exploitative trading conditions, so as to promote social equality and environmental sustainability. The International Fairtrade Organization created a label, issued by another entity, FLO-CERT, that is stamped in packages of products of business that operate under a more ethical business perspective.

Wood/timber certification

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There are two certificates that prove the origin of products manufactured with timber in Brazil. The FSC label, granted by a homonymous foreign organization, carries out site visits and analyses the handling of raw materials and legal documentation of the enterprise before issuing the certificate. Another label, the Cerflor, is Brazilian and complies with ABNT’s regulations, evaluating if planted or native forests are being managed in an environmentally adequate, socially fair and economically viable manner. Unlike other countries, Brazilian legislation says that environmental accreditation for timber products is optional, but the obtainment of a independent validation attesting to environmental responsibility of your business continuous to be advantageous, despite not mandatory.

Organic certification The label Organic Product Brazil, or Produto Orgânico Brasil, regulated by the Brazilian System of Organic Conformity Assessment (Sisorg) can be obtained in two ways: through audits by certifiers or through Participatory Guarantee Systems (SPG), which are groups composed of researchers, producers and consumers, through accreditation of the Ministry of Agriculture, Livestock and Supply, establish guidelines and self certify. Getting the seal is not limited to preventing the use of pesticides, but also through the responsible use of land and water and respect for environmental, social, cultural and economical throughout the production process respects. Small farmers are often the main beneficiaries of the label since the accreditation adds value to the

products and brings more competitiveness among the major producers.

Cruelty Free Cruelty Free International created the Leaping Bunny (in Portuguese, Coelho saltitante) label to differentiate the products that are not tested on animals. The certification is granted to companies that undertake not to use any type of animal in their product’s testing phase, essential factor for a growing portion of the population.

Certificates for accomodation facilities Obtaining a certificate of environmental responsibility is essential for the entrepreneur that worked with tourism, hence, the quantity of certifications and labels in the market are increasingly higher. The Brazilian Association of Technical Regulations created a specific regulation for sustainability in such sector, NBR 15401 – Sustainability Management System, destined to enterprises that preserve and revitalize nature, value local culture and contribute to social fairness of the community it is inserted into. These three topics are common requirements to most of the sector’s certificates, such as the Biosphere Responsible Tourism, international label recognized by UNESCO and Green Globe, one of the most globally supported certificates that counts with a UN stamp and has representatives in Brazil.

ENVIRONMENTAL LICENSING When starting a company, the first thing to be done is to pay attention to the project’s environmental licensing. In order to open a business in Brazil it is necessary to carry out the environmental licensing that may involve three licenses: the Previous, the Installation and the Operation Licenses. It doesn’t matter if the enterprise is big or micro, nor if it is located in the city or elsewhere, without due regularization through these three stages or of the simplified environmental licensing, the company cannot legally start operating. This procedure is valid only for businesses that produce some type of environmental impact – in order to confirm if your company fits this scenario, contact your state’s Environmental Office.

Previous License The first action to be taken by the entrepreneur is the obtainment of the Previous License, a document that will describe the environmental impact of the project and the compensatory actions for the environment to suffer the least possible damages. The most common procedure in this phase is the hiring of an environmental consultancy that will produce studies to evaluate environmental feasibility in the location where the company intends to install the business. The payment of the rates relevant to environmental licensing are the business owner’s responsibility and are estimated in accordance with each environmental organism’s regulations. The study and report will take into account if the chosen location is able to withstand such project: are the wastes treatable? Does the treatment of waste damage the surroundings? If there is destruction of native forest, is there a reforestation plan? These are some examples of questions that the previous study should answer. If the planning leads to deforestation, the project also depends on an Authorization to Remove Vegetation.

4.3 Guide to the sustainable entrepreneur: does your business respect the environment?

Check out some legal obligations and essential sustainable practice in the creation and maintenance of a small business that will generate richness beyond profit 111

GOOD TO KNOW In the case of micro and small enterprises, at first, the state’s Environmental Office is responsible for granting the concession and supervise the aforementioned licenses. If the project foresees an environmental impact of national scale or if it is located in an environmentally protected area, the licenses will be granted by IBAMA. In the event of strictly local impact, the municipality itself will license and authorize the company’s operation, as long as the corresponding municipality has the necessary administrative structure to do so, counting with a Municipal Environmental Council, for example.

As soon as this first license is granted, the company has a term of up to five years to adapt to the environmental authority’s demands and request the next stage, Installation License. In some cases, the environmental authority, after analyzing the documentation relevant to the previous license may verify that the company does not need to go through the three licensing stages in order to obtain the operation license, whereby the procedure is concluded in only one stage.

Installation License With the end of preliminary studies, the entrepreneur now has to assure that the plan authorized by the competent organisms is in fact executable. The Installation License is as rigorous as the

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1 2 3

PREVIOUS LICENSE It is the first stage of licensing in which the licensing authority evaluates the business location and conception, attesting to its environmental viability and establishing basic requirements for the next phases

INSTALATION LICENSE Authorizes the beginning of the enterprise’s construction and installation of equipments, after approval of projects by the environmental organism

OPERATION LICENSE It is the last stage before the initiation of the business’ operations. Periodical supervisions are performed

Previous License, given that, besides supervising the environmental aspects of the business, it takes economic, social and labor factors into account. There is no point in complying with all the established guidelines if the company is evading taxes or if labor obligations are not up to date. After the approval of the projects presented before the environmental authority, the term of the License is of up to six years, being the maximum term for the entrepreneur to execute the obligations therein and request the Operation License.

Operation License Before the business starts its operations, it is necessary to obtain the Operation License. It is in this stage that auditors confirm if the requirements and technical details foreseen in prior licenses are being correctly executed. After the due authorization, a periodical supervision is executed in the site in order to assure that the business will not become illegal with time. Having irregularities, the entrepreneur may be fined and, depending on the case, can even be indicted and sentenced to prison, if an environmental crime is verified. The validity of the Operation License varies between four and 10 years and its revalidation does not require new projects or justifications, except if the business goes through any reform or expansion. The environmental licenses validity may also vary depending on the state. The aforementioned figures indicate the maximum period imposed by IBAMA: if the license is granted by a state or municipal organism the period may be shorter – but never longer –

than the one determined by IBAMA. Depending on the state, other licenses may be requested. The best thing to do is get informed by the competent Environmental Office, with SEBRAE itself, or even with an environmental consultancy, about terms and types of licenses that are necessary for you business.

SOLID WASTE, ATMOSPHERIC POLLUTION AND LIQUID EFFLUENTS: HOW TO DEAL? During the studies and reports for the obtainment of environmental licenses, supervisory authorities will take into account innumerous project characteristics, but the generation of pollutants is one of the main ones – the emission of atmospheric pollution, disposal of wastewater and the production of solid waste of your business must be managed with extreme caution. Although the norms and limits vary from project to project, some guidelines are applicable to all. The Solid Waste Management Plan of your business is analyzed during the procedure for environmental licensing. Despite following the regulations of the National Policy for Solid Waste, micro and small businesses that do not generate hazardous waste may adopt simpler procedures than those necessary for bigger companies. In accordance with the National Policy, hazardous wastes are all of those that, due to their characteristics of flammability, corrosivity, reactivity, toxicity, pathogenicity, carcinogenicity, mutagenicity and teratogenicity, present risk to public health and to the environment.

ATMOSPHERIC POLLUTION

Booklet Environmental Licensing, a prevention mechanism

See more about Solid Waste Management in chapters 1.2 and 3.1

GOOD TO KNOW

The Ministry of the Environment defines atmospheric pollution as “any type of matter or energy with intensity, concentration, time or characteristics that may transform air unsuitable, harmful or adverse to health, inconvenient to public well-being, detrimental to materials, fauna, and flora or prejudicial to safety, or to the use or fruition of property and to the quality of life of the community”. That is: whenever the air becomes hazardous because of certain substances, the atmosphere is polluted. PRONAR – National Program for the Control of Air Quality – was created in order for Brazil’s economic growth to develop without harming the quality of the air we breathe. The mains forms of atmospheric pollution caused by men are burning of fossil fuels, use of solvents, agriculture and specific industrial processes. In order to facilitate the control sources of pollutants were divided in three groups: movable, fixed and agroforestry (agricultural, livestock and timber production activities).

Movable Sources Cars, motorcycles, trucks and any other way of transportation that depends on fossil fuels, causing the emission of carbon monoxide, sulfur oxides and other gases.

4.3

Fixed Sources The most common example is a chimney or a duct, but any fixed installation that frees substances into the atmosphere fits this definition. As opposed to movable sources, this type of emission may be analyzed directly at the source, given that it occupies a defined area knows by auditors.

Agroforestry Sources The National Environmental Licensing Portal, on the Ministry of the Environment’s website, is a good consultation tool in order to keep up to date with the Brazilian environmental laws.

This type of atmospheric pollution is connected to agricultural activities, such as forest fires, as well as spraying of fertilizers and pesticides. Currently, 75%

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of carbon dioxide emissions in Brazil are caused by deforestation and burns.

Primary and Secondary Pollutants

4.3

Just as there is a criterion to differentiate sources, the same happens to the types of atmospheric pollution. Primary pollutant is the one released directly by the source, given that it comes out of a duct, chimney or exhaust pipe with substances that are harmful to nature. On the other hand, secondary pollutant is only formed after its emission, due to chemical reactions with primary pollutants and other atmospheric components. Atmospheric pollution is a process that takes place in three stages: emission of pollutants, transportation and chemical or physical reaction to atmospheric substances and, finally, impact that such reactions will cause to the environment. Brazil has established quality parameters for the air for the following indicators: D total suspension particles; D smoke/fumes; D sulfur dioxide; D inhalable particles; D carbon monoxide; D ozone; D nitrogen dioxide. In accordance with the national standard, created by IBAMA, the air quality is measured through these seven substances, but, depending on the state, other components may be included in the analysis.

EFFLUENTS

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Effluents are industrial liquid wastes with the potential to contaminate the environment, especially bodies of water, such as rivers and oceans. One of the main dangers of disposal of effluents is that the initial impact is far from the source: a chemical substance is released in a river and apparently is diluted in the water and, normally, the

damage is only observed kilometers away, far from the eyes of the polluter. According to the National Council for the Environment (Conama) effluents of any polluting source can only be released in receiving bodies after due treatment, as provided for in Resolution no. 430 of the aforementioned entity. The limits for emission vary according the chemical composition of the disposal and of the receiving body (for example, freshwater or saline). The controlled substances are divided inorganic parameters (arsenic, lead, barium, among others) and organic parameters (benzene, chloroform, styrene and other substances). The business that pollutes or that may come to pollute water resources must present, annually, on March 31 the Declaration of Pollutant Load to environmental authorities.

WORK CONDITIONS There is no use in preserving the environment if your businessâ&#x20AC;&#x2122; employees do not have their rights respected. The Consolidation of Work Laws (CLT) is assured by the Federal Constitution and requires that the employer complies with a series of labor obligations â&#x20AC;&#x201C; see the main ones:

Work Card The Work and Social Security Card (CTPS) is mandatory for every individual that renders a service in Brazil. This document is the starting point for a series of labor rights, such as unemployment compensation, Employee Sever-

GOOD TO KNOW Food voucher, life insurance and medical assistance are not the employerâ&#x20AC;&#x2122;s obligation. Although the CLT does not require them, union agreements may require such benefits, hence, it is good to verify if this is the case of your employees.

VALUED PROPOSAL Be the national referral in services in the mechanical metal sector by 2016, meeting national quality standard, providing employee development and exceeding client, investors, suppliers and society’s expectations

INNOVATION IN THE USE OF RESOURCES Started to reuse raw materials, reusing waste and adequately disposing tailings

PARTNERSHIPS THAT MAKE A DIFFERENCE Capacity building projects and consulting with Sebrae, Senai and IEL - Institute Euvaldo Lodi

Reusing leftover materials means not only reducing the volume of waste generated by the project and preserving the environment: it is also a synonym of an excellent business opportunity. Evidence of this is JS Metalurgia, metallurgical company of Manaus that, after attending a series of courses and training given by Sebrae, began using iron scraps to also produce and trash cans and protective air conditioner cases – until this point, the company’s specialty was limited to metallurgical services and metal frames. One of the most emblematic cases of reusing raw materials was during removal of metal walls. JS made the following proposal: they would not charge anything if instead of throwing the pieces in the trash, they could keep all them. After the client’s acceptance, they performed one job using such partitions, acquired for free – and charging a price well below market, without loss of quality. In the end everyone gained from this: the first client did not spend a penny and became loyal to the company, the second spent less than expected and also became loyal to the company and the environment was spared from the disposal of material that would take many years to decompose. Another attitude that reduced JS’s costs was the option to exchange traditional models of tiles for translucent tiles, saving electricity bill at the end of the month. Disposable cups were removed and now every employee has his own glass cup, reducing the amount of waste produced daily. The sum of each of these small actions resulted in a 10% reduction in monthly maintenance costs and a 5% increase in sales, thanks to the new products that started to increase the company’s budget.

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BETWEEN 14 AND 15, WORK IS ALLOWED ONLY IN THE CONDITION OF APPRENTICE, THAT IS, THERE MUST BE AN APPRENTICESHIP AGREEMENT ASSURING THE TECHNICAL AND PROFESSIONAL CHARACTER OF THE JOB ance Indemnity Fund (FGTS) and 13th salary. It is in the Work Card that all of the employee’s professional information and history is officially registered.

Transportation voucher The company is compelled to calculate the value that its employee spends on public transportation in order to go from his house to work. Thus, as soon as the daily amount is stipulated, it is the employer’s duty to fund such displacement: at most, 6% of the employee’s gross salary may be discounted in order to cover such payment, the difference must be borne by the company itself.

4.3

FGTS It is the company’s responsibility to perform monthly deposits equivalent to 8% of the employee’s gross salary in a Caixa Econômica Federal account. The idea behind FGTS is to help the employee’s retirement, besides helping in case of dismissal or diagnosis of serious diseases.

Paid vacation When the employee completes one year of registration in his work card, he acquires the right to a 30-day paid vacation. It is up to the employer to decide when such vacation will take place, but if it takes longer than 12 months for the payment to be executed it will be doubled.

13th salary

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Every hired employee must receive, besides monthly remuneration, a

13th salary. The value of such extra salary must be equal to the salary gained in December and, if the employee still did not complete one year of services, the value of the 13th salary shall be divided by 12 and multiplied by the number of effectively worked months. The first half of the payment must be performed by November and the second half by December 20th.

Overtime The employee must not be at the employer’s disposal for over 44 hours per week. Each extra hour is considered overtime and the value to be paid is of 50% higher than the normal hours of the workday.

Night shift pay When the employee carries out night activities, his hourly remuneration must be 20% higher. For urban professions, nighttime is considered from 10pm to 5am of the other day. In rural activities, that range goes from 9pm to 5am and in livestock the night shift is considered to be from 8pm to 4am.

Prior notice Whenever there is breach of contract, resignation or dismissal, the other party must be notified one month in advance. If the prior notice does not take place, the employer must pay the employee the salary and corresponding benefits relevant to the period – these values will be discounted from the employee if he is the one leaving the company.

CHILD LABOR In Brazil, any form of work exercised by a child under 14 years of age is illegal. Between 14 and 15, work is allowed only in the condition of apprentice, that is, there must be an apprenticeship agreement assuring the technical and professional character of the job. Adolescents with 16 or 17 years of age may work as long as some conditions are observed: school activities cannot be undermined, there cannot be night shifts or unhealthy work conditions (continuous exposure to agents harmful to health) or dangerous (for example: permanent contact with explosives, pesticides, electricity and flammable materials). Even if all of these requirements are respected, the minor can only be employed if duly enrolled in school. As of the age of 18, there are no limits. If child labor is proved, the company is fined and, depending on the case, a criminal charge may be opened against the employer. For more information on this subject, contact the Labor Ministry Regional Office for your state.

SUSTAINABILITY DIFFERENTIALS There are some practices that are not mandatory, but can make a difference in your business. They are details that might go unnoticed on the daily routine, but, in the long run make all the difference – to the environment, the pocket and to the entrepreneur’s pocket.

Tips D Only change electronic devices when strictly necessary. Electronic wastes are one of the most damaging ways of environmental impact: destine them correctly after disposal. D Use electric energy consciously. Do not leave electronic devices in stand-

PARTNERSHIP THAT MAKES A DIFFERENCE An industry of detergent collects used oil from Barriga Verde’s kitchen, offering, in exchange, soap for cleaning the grill room, a junkyard buys cans from the restaurant and the bags of charcoal are resold to their manufacturer

INNOVATION IN THE STRUCTURE EXPENSES One handmade can crusher was developed by the enterprise, creating the culture of the employees themselves crushing the cans. This procedure optimizes the use of each bag of cans sold, as well as beginning the recycling process inside the establishment. The bags of charcoal used in reverse logistics are separated by the cook himself

Churrascaria Barriga Verde, located in the capital of Maranhão, offers a varied menu of sustainable practices. The spices in the dishes served are harvested in restaurant’s crop out back, which not only guarantees the freshness of the spices, but also reduces waste, since the small crop is fertilized with compost made from leftover food and ashes from grill. The cans are crushed and sold to recycling companies – money raised from the sale funds the year-end celebration of the 35 members of the restaurant. The enterprise also demonstrates a concern with their suppliers: all meat served from the grill is certified by the Federal Inspection Service. The replacement of incandescent lamps with fluorescent, more economical, coupled with an awareness of employees about the importance of turning on the light only when needed, were also important steps towards Barriga Verde’s sustainability.

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4.3

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by, substitute incandescent lamps for fluorescent lamps, and preserve electrical wiring to prevent power leakage and possible accidents. D Be careful with the printer. Print only what is necessary and configure your machine to duplex printing, saving on ink and paper. D Treat garbage with care. Use different containers for dry waste (paper, plastic, glass and metal) and humid or organic waste (used napkins, leftover food). Thus, you facilitate garbage recycling, strengthening local cooperatives, preserving sanitary landfills and reducing raw material costs in the manufactured of new products. D When you buy electric appliances, give preference to those models with low energy consumption. Pay attention to the Procel label that clearly indicates what is the product’s efficiency level. D Attention to the maintenance of equipments. A dirty refrigerator consumes more energy than a clean one. An air conditioner under strong sunlight glare and with a dust-filled filter is less effective than a unit in the shade and with a clean filter. D Prefer local products. Besides strengthening other micro and small businesses, you will also avoid the emission of carbon dioxide in the transportation of articles coming from another city. D Choose your suppliers wisely. Buy products from stores with environmental practices, strengthening the sustainable market chain. Research your suppliers history before purchase

and give preference to projects that will generate income, such as cooperatives of craftsman and neighborhood associations. D Keep contact with local community. Check that your enterprise’s actions are not causing a negative impact – be it social or environmental – in people’s lives. D Invest in solar energy. The initial cost is written off in medium-term due to the savings that you will have in electricity bills: a solar heater wastes R$0.0035 per liter of heated water, against R$0.64 spent by gas heater and R$0.89 spend with an electric shower. D Promote environmental education. Focus not only on your employee’s, but also on your family member, so as to replicate your company’s environmental responsibility in other locations and situations. D Create a good practices’ manual. The more your measure your company’s waste and standardize procedures, small will the chances of harming the environment and wasting money be.

Booklet Sustainable Management in Companies

Booklet Ethos-Sebrae Indicators of Social Corporate Social Responsibility for Micro and Small Companies

THE MORE YOUR MEASURE YOUR COMPANY’S WASTE AND STANDARDIZE PROCEDURES, SMALLER WILL THE CHANCES OF HARMING THE ENVIRONMENT AND WASTING MONEY BE

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Ministry of Agriculture website. Sustainable development. [accessed 28.nov.2013] <http://goo.gl/R3Kga3>

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Solid Waste Management » p. 21 <http://goo.gl/zEz5Yg> Guide to the Entrepreneur Mayor » p . 35 <http://goo.gl/jw4T5u> Governmental Purchases » p. 36 <http://goo.gl/9UwRUp> Practice for Forest Management and Agribusiness – Non-Timber Forest Products » p. 78 <http://goo.gl/nNuEU4> Financing Sustainability on Micro and Small Enterprises » p. 94 <http://goo.gl/9xiiP3> Credit Cooperatives » p. 94 <http://goo.gl/ML6zy1> Environmental Licensing: A Mechanism for Conflict Prevention » p. 113 <http://goo.gl/lg0Rby> Sustainable Management in Enterprises » p. 118 <http://goo.gl/ibJ3YR> Ethos-Sebrae Indicators of Social Responsibility for Small and Micro Enterprises » p. 118 <http://goo.gl/OPvda2>

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Acknowledgment Carlos Alberto Rissato – Sebrae Consultant

James Hilton Reeberg – Sebrae Consultant

Sorocaba’s Collectors’ Cooperative (Cooperativa dos Catadores de Sorocaba – Coreso) and Cata Vida Network (Rede Cata Vida) <http://goo.gl/M6w0Mc>

Luiz Barreto – National Sebrae President

São José dos Campos’ Futura Cooperative (Cooperativa Futura de São José dos Campos) <http://goo.gl/m6Ev63>

Mirela Souto – Marca Ambiental

Company Biten Máquinas – Fortaleza (CE) <http://goo.gl/eumn3U> Company Centroeste Ambiental – Rodonópolis (MT) <http://goo.gl/GVH4Ai>

Luciane da Mota Costa – Development Agent in Aral Moreira

Pilar Carolina Villar – Professor and Dr. at Universidade Federal de São Paulo Renato Saboya – Associate Professor at Universidade Federal de Santa Catarina and Editor or the website Urbanidades Rafael Dantas – JS Metalurgia

Company Diageo: Glass is Good Program – Everyone Recycling Glass. São Paulo (SP) Company Organoeste – Campo Grande (MS) <http://goo.gl/ze34cs> Company Morada da Floresta – São Paulo (SP) <http://goo.gl/Pk2PLi> Company Saneabas – Apucarana (PR) <http://goo.gl/dy0k6A> Company Marca Ambiental – Cariacica (ES) <http://goo.gl/5oDaN7> Company Moura e Paz Reciclagem – Vilhena (RO) <http://goo.gl/PBHQPx> Company Soliforte – Campo Largo (PR) <http://goo.gl/jrC4jN> Company Otser – Electronic Waste Management – Campo Bom (RS) <http://goo.gl/slifkJ> Company Estação Resgate – SP, MG, GO e PE. <http://goo.gl/Oym6Vd>

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Fabrísio Rossini – Company Churrascaria Barriga Verde

SEBRAE NACIONAL – BRAZILIAN SERVICE OF SUPPORT FOR MICRO AND SMALL COMPANIES Chairman of the National Deliberative Council Roberto Simões Chairman Luiz Eduardo Pereira Barretto Technical Officer Carlos Alberto dos Santos Finance and Administration Officer José Cláudio dos Santos TECHNICAL SUPPORT Access Unit for Innovation and Technology Ênio Pinto and Gláucia Zoldan

SUPPORT SERVICE FOR MICRO AND SMALL COMPANIES OF MATO GROSSO Chairman of the State Deliberative Board Jandir Milan Superintendent Officer José Guilherme Barbosa Ribeiro Officer Leide Garcia Novaes Katayama Officer Eneida Maria de Oliveira TECHNICAL SUPPORT Sebrae Sustainability Center Suênia Sousa and Renata Taques

SUPPORT SERVICE FOR MICRO AND SMALL COMPANIES OF MATO GROSSO DO SUL Chairman of the State Deliberative Board Eduardo Corrêa Riedel Superintendent Officer Cláudio George Mendonça Operations Officer Maristela de Oliveira França Technical Officer Tito Manuel Sarabando Bola Estanqueiro TECHNICAL STAFF Ana Carla Albuquerque de Oliveira, Leandra Oliveira da Costa, Rodrigo Maia Marcelo Pirani, Sandra Amarilha and Vitor Gonçalves Faria

TECHNICAL SUPPORT Inter-American Development Bank (BID) Brazilian Representatives Ismael Gílio Senior Sector Specialist of the Multilateral Investment Fund (FOMIN)

EDITORS Giral Viveiro de Projetos Project Management Mateus Mendonça Executive Editors Carolina Rolim and João Mello Bourroul Editors João Mello Bourroul, Carolina Rolim, Júlia Luchesi and Victor Hugo Mathias Revision João Mello Bourroul Translation Thais Tendolini Art Direction Luciano Arnold Design and Infographics Start Digital

www.sustentabilidade.sebrae.com.br

PRACTICAL

GUIDE TO

Sustainability IN SMALL BUSINESS

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Fundo Multilateral de Investimento Membro do Grupo BID

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Practical Guide to Sustainability in Small Business

national and international success cases.

Tools for territorial development and fostering of innovative and sustainable business

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