Esval S.A. Sustainability Report 2009 ABOUT THIS REPORT Compliance with the Principles on 3. Workshop with representatives Reporting Content of neighbor committees, organized This is Esval’s second Sustainability Report, into Communal Associations (UNCOs) which outlines its economic, social and The content of this report was defined in the region, for which the Company environmental performance in a balanced considering the principles of the GRI standard invited all the UNCO leaders to a way, pursuant to the criteria and requirements on relevance or materiality, sustainability working breakfast meeting. With the laid down by the Global Reporting Initiative context and stakeholder inclusiveness. help of a consultant team, the attendees (GRI) in its G3/2006 guidelines for drawing up were asked about the degree of sustainability reports1. importance they gave to each of the 1. Benchmark of sustainability content items of the report published reports of national water utilities. This The content of this report only refers to Esval’s the previous year. 21 representatives concept identified the main issues and operations in the Valparaíso Region and the of communal organizations attended this aspects reported by the industry and best January 1 through December 31, 2009 period, workshop. reporting practice. unless expressly indicated otherwise. For better understanding, the figures and data are shown All the participants also had the opportunity compared to the years 2007 and 2008. 2. Analysis of press articles. The aim of raising other issues of interest that were not was to find out the significant issues for reported on in the 2008 report or about which In regard to the data reported the previous year, the Company and industry from a public they would like to have more information. there were no major changes in Esval’s size, opinion perspective and in a context of structure or ownership, and nor have the bases, sustainable development. 608 press articles preparation criteria or the calculation methods in the January 1 through December 31, used changed. If there is any modification of 2009 period were reviewed and any indicator, this will be expressly reported. analyzed.
1www.globalreporting.org 2 ASPECTS RAISED BY ASPECTS IDENTIFIED ASPECTS IDENTIFIED IN STAKEHOLDERS BY BENCHMARK PRESS ANALYSIS (UNCO LEADERS)
List of Issues Material to be Included in Esval’s Sustainability Report 2009
The main issues and their priority were established in this workshop, which are CHAPTER/SECTION Nº OF INDICATORS reflected in the structure of this report and the depth of the different issues. STRATEGY AND PROFILE 42
The various aspects of the GRI standard ECONOMIC DEVELOPMENT 3 were associated with the list of major issues identified and related to each of them and its ENVIRONMENTAL DEVELOPMENT 22 respective indicators, defining that data would be gathered on 54 performance indicators SOCIAL DEVELOPMENT - PRODUCT RESPONSIBILITY 9 plus all the indicators related to the profile, corporate governance, commitments and SOCIAL DEVELOPMENT - SOCIETY AND HUMAN RIGHTS 8 stakeholder participation. This gave a total of 96 indicators to be reported on. SOCIAL DEVELOPMENT - LABOR PRACTICES 12
TOTAL INDICATORS 96
Esval Sustainability Report 2009 3 Moreover, in this report Esval strived to meet the additional ISSUES/CONCERNS data expectations raised by the leaders of the communal organizations involved in the ODORS AT WASTEWATER TREATMENT PLANTS WATER QUALITY, CHEMICALS USED AND THEIR TREATMENT process of defining the content ENVIRONMENTAL of Esval’s Sustainability Report PERFORMANCE WASTEWATER DISCHARGES 2009. MAIN ENVIRONMENTAL IMPACTS
USER AND LEADER TRAINING SOCIAL PERFORMANCE SUPPORT OF CUSTOMERS IN DEFAULT WITH JUSTIFICATION PRODUCT RESPONSIBILITY INFORMATION ON SUBSIDIES WATER CUT (SCHEDULED OR UNSCHEDULED) MANAGEMENT Attained Partially attained Unattained INFORMATION ON CONTRACTORS AND SUBCONTRACTORS (ESVAL’S RELATIONS WITH THEM, SOCIAL PERFORMANCE HOW IT TRAINS THEM, HOW IT MAKES SURE THEY DO A GOOD JOB WITHOUT IMPACTING THE LABOR PRACTICES ENVIRONMENT AND COMMUNITY) INFORMATION ON EMPLOYEE TRAINING AND RELATIONS
DIRECT COMMUNITY SUPPORT AND INFORMATION ACTIVITIES RESEARCH DEVELOPMENT WITH UNIVERSITIES SOCIAL PERFORMANCE SOCIETY TRAINING ON WATER CONSUMPTION ISSUES AND OTHERS UNDERSTANDING ESVAL’S RELATIONS WITH THE DIFFERENT PUBLIC BODIES IN THE REGION
COMPANY GROWTH ECONOMIC HOW THE COMPANY INVESTS IN THE REGION PERFORMANCE PROJECTS UNDERTAKEN AND THEIR PROGRESS INFORMATION ON WATER TARIFFS
4 RESPONSE LEVEL IN Compliance with the Principles Corporate Contact THIS REPORT on Reporting Quality Esval deems this report is a way of sharing To ensure the quality, accuracy, comparability its achievements and challenges with its main and verifiability of the information contained stakeholders to promote greater engagement in this report, Esval had the support of a with them. To request further information or specialist external consultant on the GRI-G3 make comments on the content of this report, guidelines. This support enabled the necessary interested people or institutions can contact: precisions to be made and the targets for the next reporting period to be documented. Management: General Management Each indicator concerning the Company’s economic, social and environmental Address: Cochrane 751, Valparaíso performance was drawn up in accordance with technical data and calculations based on procedures laid down in national regulations Telephone: (56 - 32) 2209341 and aligned with the standards accepted by the international community. E-Mail: [email protected] Based on this, the Company qualified this report’s compliance as Level A. Report Application Levels 500 copies of this report in Spanish were printed this year. Moreover, to guarantee access and wide distribution, a version was released in PDF format that is available on the corporate website www.esval.cl
Esval Sustainability Report 2009 5 Index
00 FOREWORD BY THE PRESIDENT AND CHIEF EXECUTIVE 8
01 OUR COMPANY 12 01.1 WHO WE ARE AND WHAT WE DO 01.2 BUSINESS VISION AND SUSTAINABILITY 01.3 CORPORATE GOVERNANCE AND ETHICS 01.4 MEMBERSHIPS
02 CONTROLLING OUR ENVIRONMENTAL IMPACT 34 02.1 MANAGING OUR IMPACT 02.2 WATER AND BIODIVERSITY 02.3 EMISSIONS 02.4 WASTE 02.5 DISCHARGES 02.6 RAW MATERIALS 02.7 ENERGY
03 CUSTOMER RELATIONS 48 03.1 OUR CUSTOMERS 03.2 CUSTOMER SERVICE AND SATISFACTION 03.3 CUSTOMER INFORMATION AND SUPPORT 03.4 PRODUCT/SERVICE QUALITY AND SAFETY 03.5 SUPPLIER RELATIONS
6 04 EMPLOYEE RELATIONS 64 04.1 OUR EMPLOYEES 04.2 GENERATING QUALITY EMPLOYMENT 04.3 TRAINING, DEVELOPMENT AND EMPLOYABILITY 04.4 OCCUPATIONAL HEALTH AND SAFETY 04.5 LABOR RELATIONS 04.6 CONTRACTORS
05 COMMUNITY RELATIONS IN THE REGION 74 05.1 COMMUNITY 05.2 PUBLIC-PRIVATE PROGRAMS TO SUPPORT REGIONAL DEVELOPMENT
06 CONTRIBUTION TO REGIONAL ECONOMIC DEVELOPMENT 80 06.1 ECONOMIC VALUE GENERATION 06.2 A REGULATED BUSINESS
07 2009 COMMITMENTS AND 2010 CHALLENGES 88
08 GLOBAL REPORTING INITIATIVE (GRI) INDEX 92
Esval Sustainability Report 2009 7 00
We are very pleased to submit Esval’s second Sustainability Report for 2009, which reflects the efforts started at least five years ago and that culminated in 2008 with the release of the first report.
8 Foreword by the President and Chief Executive
We continue to work hard in the Company presented in a balanced way and pursuant impact that it was emulated by the Planning and also with our related stakeholders. to nationally and internationally-renowned and Development Ministry (MIDEPLAN) in In this second report we can confirm that requirements. This is in turn paramount the Chile Solidario program by means of a sustainable development is a core aspect to pursue quality engagement with the loan from the Inter-American Development of our business model, which is evident community, which has become our main Bank. in socially responsible behavior, respect concern due to the impact of a water utility’s for employees, the environment and the operations on life. Then, the Communal Association of communities with whom we engage. Neighbors’ Committees of Viña del Mar We are not alone in firmly believing in a policy gave Esval and its staff an award plaque for We have therefore taken a new step by of direct and transparent relations with our “its ongoing disposition to forge relations considering the opinion of representatives customers and the community as a whole, with social organizations, which reflects the of social organizations in the Valparaíso as two important institutions recognized important role it plays as a socially responsible Region as an essential aspect in drawing up this work in 2009. Firstly, the Asociación de company towards the community.” this report, which has enabled us to add a Industriales de Valparaíso (ASIVA) awarded us new focus and significant information from the “Corporate Social Responsibility Award” We cannot omit an event of major importance the perspective of these groups. We deem in the large company category for designing for the Company and the community in the reporting process to be continuous the successful Up-To-Date with Esval program 2009: the private administration completed improvement work on the economic, social together with social organizations and then a decade under the Company management and environmental aspects of the Company, applying it. This initiative has had such an and we can proudly confirm we have achieved
Esval Sustainability Report 2009 9 00 Foreword by the President and Chief Executive
large progress. This is evident in specific tourism, agricultural and services development the region are 100% clean of wastewater. actions like an increase in the coverage of in the region, as without water there is no In comparative terms, a report by the our services. Hence, wastewater treatment possibility of any new urban development Organization for Economic Co-operation and increased from 59.4% coverage in 1999 to and growth simply stagnates. This is, for Development (OECD), to which Chile belongs, 100% as of 2006. Sewerage coverage rose example, what happened with sectors on and the Asociación Nacional de Empresas from 86.9% in 1999 to 91.9% in 2009, the northern coastline where there was de Servicios Sanitarios (ANDESS), ranks Chile and drinking water coverage increased from no drinking water until we built a 57- in eighth place in the world on wastewater 95.2% to 99.3% 1999 through 2009. kilometer pipeline from the production treatment, with 84% coverage, which is the plant on the Aconcagua riverbank to same level as the average of countries that To carry out this growth, we have invested the district of Zapallar, which started in are part of the European Union. Only Holland, US$463 million in the last ten years, which is 2003 and was completed in 2008. Due Switzerland, the United Kingdom, Germany, one of the highest private investments in the to this large investment, every day we Spain, Austria and Sweden are ahead of it. Valparaíso Region in the same period. can see how communities are reborn and Nevertheless, the Valparaíso Region treats all others grow as the service increases in the the wastewater it collects, which puts us in Such proceeds were allocated equally to sector. first place of the international ranking up with drinking water production and distribution the most developed countries in the world. and to wastewater collection and treatment. Wastewater treatment has a large impact The large works undertaken included the on people’s health and on conserving the In regard to the impact on people’s health, construction of 16 wastewater treatment environment. In fact, several scientific it is important to mention that a study was plants and 59 drinking water storage tanks. reports claim that discharge of organic submitted to the National Congress in the matter leads to a loss of oxygen in water, late 1990s claiming that for every US dollar We have noted that the growth of sanitary affecting the biodiversity present. We can invested in wastewater treatment, the State services has contributed to the real estate, now proudly say that the rivers and brooks in and people save US2.5 on infecto-contagious
10 diseases. Without going into details, a report by the doctors Chiang and Henríquez on the impact of the wastewater treatment system on Greater Valparaíso showed a drop in the typhus, paratyphus and hepatitis rates.
Therefore, when we see that more housing is being built every day in the region, that the number of tourists is on the increase, that vegetable and fruit exports are increasing to first world countries, we feel great satisfaction for permanently collaborating with the economic and social development of our area and its inhabitants.
Lastly, we know that despite the work undertaken we cannot rest. Quite the contrary, we understand that our responsibility requires daily work, and we are aware that there is still room for improvement. That is our commitment to the region, the country and mainly our customers.
Gustavo González Doorman Pedro Pablo Errázuriz Domínguez Chief Executive President of the Board
Esval Sustainability Report 2009 11 01
01.1 WHO WE ARE AND WHAT WE DO
Esval S.A. is a publicly-traded corporation that produces and distributes drinking water, collects, treats and disposes wastewater, and provides services related to such activities in the way and conditions laid down by law and other applicable regulations. Its activity is regulated by the Superintendency of Sanitary Services (SISS)2, which controls the service quality and suitable wastewater treatment.
2 12 www.siss.cl Our Company
Main highlights in the last 10 years
The National Congress agrees that water utilities can Esval becomes the first water utility to open up to be privatized, with the State maintaining a capital privatization by means of an international tender stock percentage. 1998 process. Aguas Puerto S.A. (Enersis 72% and Anglian Water Chile Ltda. 28%) was awarded 40% of the shareholding.
The Valparaíso Region has drinking water service The Las Vegas aqueduct maintenance works were coverage of 95.2%, 86.9% for sewerage and 59.4% 1999 completed to improve the operation of this system for collected wastewater treatment. which supplies 70% of the inhabitants of Greater Valparaíso.
The Higuerillas marine outfall is extended, thereby Anglian Water becomes the main shareholder of the opening the Amarilla, Los Lilenes and Playa Negra Company with a 49.82% shareholding. beaches in the district of Concón in the summer of 2000. The Company resumes direct operation 2000 of the province of San Antonio, which has 55,000 customers, thereby ending in advance the investment management contract between Esval and Aguas Quinta signed in 1993.
Inauguration of the Higuerillas and Concón Oriente Construction starts on 30 drinking water tanks wastewater treatment plants, completing the clean- distributed throughout the concession area to up of the beaches in Greater Valparaíso. 2001 increase the storage capacity and make the growth and development of cities possible.
Esval Sustainability Report 2009 13 01 Our Company
Start-up of the Los Maitenes, La Ligua, Papudo, The Healthy Water, Healthy Life campaign is launched, Zapallar, Cachagua and La Laguna wastewater whose aim is to disseminate the need of good use of treatment plants, and the construction of the drinking water and sewerage systems. Chincolco system is completed. Start-up of the San An increase of 15,000 drinking water subsidies for Felipe, Los Andes and Quillota wastewater treatment the poorest families in the region was attained due plants, thereby freeing the Aconcagua river and 2002 to the joint work of Esval and the legislative, regional Limache brook of domestic waste. Construction of and district authorities. the Avenida Argentina collector in Valparaíso.
Construction starts on the first stage of conveying Consorcio Financiero S.A. acquires 44.78% of the drinking water from the district of Concón to that of company, becoming the major shareholder. Esval is Zapallar, covering the stretch to Quintero. awarded the operation of the sanitary concessions Start-up of the El Quisco, El Tabo and Curimón in the Coquimbo Region through its affiliate Aguas wastewater treatment plants. del Valle for a 30-year term. Esval thereby attains a The Up-To-Date with Esval program was launched to market share of around 17% of customers in this train the poorest sectors in the benefit of responsible sector in the country. drinking water consumption. The program also 2003 Esval’s laboratory attains certification of complying provides special benefits for regularizing debt. with Chilean standard 17.025, which regulates the This program was subsequently repeated by the operation of these establishments at national and government in the Chile Barrio (Chile Neighborhood) international level. program, led by MIDEPLAN, with a contribution from the IDB.
Start-up of the Quintero and Rinconada wastewater The Company starts to participate in the Gobierno treatment plants. Más Cerca (Closer Government) program, an activity 2004 of the provincial governors’ offices that gets the community closer to public services.
Esval secures the ISO 14001, 2004 international 550 l/s increase in the Las Vegas drinking water certification, which includes all the company’s production capacity, which supplies the main towns processes, i.e., drinking water abstraction, production in Greater Valparaíso, at an investment of over CLP2 2005 and distribution, and wastewater collection, billion. treatment and disposal.
14 Nogales is connected to the El Molino de Quillota By means of an agreement by the Municipality of wastewater treatment plant. Viña del Mar, community organizations and Esval, The San Antonio district clean-up system is launched the facilities of the Nuevo Horizonte housing estate with the attendance of President Ricardo Lagos in the Glorias Navales sector are improved. This estate Escobar. This completes the 100% domestic waste had internal operation problems. clean-up of rivers and seawater on the coastline in The company participates in the Manitos Limpias the Valparaíso Region. (Clean Hands) program with the Regional Ministerial Stabilization lagoons are converted to aerated Secretary of Health, promoting children’s hygiene to lagoons, thereby complying with the standards laid prevent infecto-contagious diseases. down in Supreme Decree 90 related to discharges of 2006 liquid waste into seawater and continental surface water. Ten towns benefit from this process, which entailed an investment of over CLP6.6 billion.
The Healthy Water, Healthy Life campaign disseminates The Ontario Teachers’ Pension Plan acquires 69.4% the good use of drinking water and sewerage systems of Esval’s shares, becoming the main company 2007 to over 205,000 people, attaining one million contacts shareholder. since the program was launched in 2002.
Start-up of a geo-referenced information system The company secures the ISO 9001, 2000 international with digital maps with operational infrastructure. It service quality certification, and OHSAS 18001, 2007 includes customer location and that data is cross- certification on occupational safety and health of its referenced with the results of the 2002 census, employees. In addition to ISO 14001, 2004 which location of schools and hospitals, among other 2008 includes all the processes, Esval is the first water establishments, besides telephone databases, utility to have an integrated management system. making the customer service more efficient.
Inauguration of drinking water conveyance from The Valparaíso Region has a sanitary service the Aconcagua river production plant in the district coverage which is similar to and even higher than of Concón to Zapallar. It is 57.5 kilometers long, that of developed countries: 99.3% for drinking 2009 entailed an investment of CLP22.715 billion, and will water, 91.8% for sewerage and 100% for collected supply a broad sector on the northern coastline of wastewater treatment. the region, whose development was hampered by the lack of water.
Esval Sustainability Report 2009 15 01 Our Company
Esval provides a water service to 529,260 Esval Operation Data 2009 drinking water customers and 476,284 sewerage customers, who account for 99.3% and 91.9%, respectively, of the population of Urban population supplied 1,480,834 the concession areas in the districts where Esval S.A. operates in the Valparaíso Region. Drinking water customers To provide its service, the Company has a 529,260 network of 4,416 kilometers of drinking water mains and 3,246 kilometers of wastewater Sewerage customers 476,284 collectors3. Drinking water coverage (%) 99.3 %
Sewerage coverage (%) 91.9%
Wastewater treatment coverage 100% of water collected (%)
Drinking water billing (thousands of m3 a year)* 93,456
Sewerage billing (thousands of m3 a year)** 82,877
Source: SISS management report 2009 (except the figures marked with an asterisk which are from Esval’s data)
3SISS sanitary sector management report 2009. 16 Concession Area They approximately include the urban zones of all the districts in the Valparaíso Region, with the exception of the towns of Panquehue, Olmué Article 53 of the General Sanitary Services and Santo Domingo and the island territories Law defines a concession area as “the that depend on this region (Easter Island and geographical area with an established land Juan Fernández Island). This territorial definition and height boundary, where there is a service does not consider those sectors that are obligation for drinking water distribution and concessions of private or municipal services. wastewater collection concessionaires.” Esval complies with interconnection and service Esval’s concession areas are the zones that the administration contracts outside its concession previous water utility in the Valparaíso Region area to supply drinking water to the Algarrobo served before the General Sanitary Services Law Norte, Mirasol and Brisas de Mirasol concessions came into force on June 21, 1989, including the in the district of Algarrobo and it has an expansion areas envisaged in the development interconnection contract with Inmobiliaria Norte plans and new expansions approved by the Mar, the concessionaire in the Rodelillo sector of SISS. the district of Viña del Mar.
Esval Sustainability Report 2009 17 01 Our Company
Map of the towns where
Esval provides a service 01 Petorca: La Ligua, Cabildo, Papudo, Zapallar 02 San Felipe: Putaendo, Santa María, Catemu, Llay Llay 03 Los Andes: San Esteban, Rinconada, Calle Larga 04 Quillota: Nogales, La Cruz, La Calera, Hijuelas 05 Marga Marga: Limache, Villa Alemana, Quilpué 06 Valparaíso: Puchuncaví, Quintero, Concón, Viña del Mar 01 07 San Antonio: Algarrobo, Casablanca, El Quisco, El Tabo, Cartagena, San Antonio Petorca
02 san felipe 03 04 los andes quillota
05 MARGA MARGA 06 VALPARAÍSO
07 SAN ANTONIO
Sectors outside the concession area: Sto. Domingo, Olmué, Panquehue.
18 ESVAL S.A Affiliates and Related Companies 99.00% 99.99%
Esval was awarded a public tender in 2003 giving it the right to the 30-year operation of the public sanitary service concessions, SERVICIOS held by ECONSSA CHILE S.A., former AGUAS DEL SANITARIOS ESSCO S.A., in the Coquimbo Region. The VALLE affiliate corporation Aguas del Valle S.A. was LAS VEGAS LTDA. established to manage such concessions, whose objective is exclusively focused on producing and distributing drinking water, subsequent wastewater collection, treatment 1.00% and disposal, and the remaining services laid down in current sanitary legislation.
The activities and results of this affiliate are not included in this report, apart from exceptions that are expressly indicated.
Esval Sustainability Report 2009 19 01 Our Company
Processes Drinking water production and wastewater treatment
Drinking water is that made fit for safe use drinkable. Esval produced 161,484,277 m3 contains the waste from the daily activities of and human consumption. It is produced from of drinking water in 2009 to supply an urban people and related services, which is why it untreated water abstracted from surface or population of 1,480,834 people. must be removed and treated safely to protect underground sources, which is put through users and the environment from the infinite various treatment processes at facilities Wastewater treatment has a high social and contaminating agents and germs that build specially designed for this. The outcome is environmental impact, as it helps to prevent up in drains. In 2009, Esval treated 100% of a product that meets the national standard, the release of a host of contaminating germs the wastewater collected. NCh 409/1. of 2005, which sets forth and agents that can be harmful to the health the characteristics water must have to be of people and ecosystems. Wastewater
THE HYDROLOGICAL CYCLE
Water has no beginning or end. The hydrological cycle has enabled it to be constantly recycled since the beginning of the world.
Stages of the Hydrological Cycle 1 Seawater evaporates due to heat. 2 Evaporation gives rise to clouds. 3 Water precipitates from the clouds in the form of rain or snow. 4 Snow builds up on high peaks and glaciers are formed. 5 Thawing causes the water to run off down ravines and into rivers and brooks. 6 A part of the water transported accumulates in lakes or dams.
20 Esval Sustainability Report 2009 21 01 Our Company
Drinking Water Plants Wastewater Treatment Plants
Valparaíso Operations Department Quillota Operations Department Aerated Lagoons
Las Vegas (Romeral) La Cruz Catemu Sondaje Alfaro (Quillota) Puchuncaví Concón Placilla de Peñuelas (Valparaíso) Sondaje Angamos (Quillota) Peñuelas (Valparaíso) Petorca Sondaje Sargento Aldea (Quillota) Santa María Poza Azul (Quilpué) Parrones (Quillota) San Esteban El Cristo (Quillota) Cabildo San Felipe-Los Andes Operations Department Sondaje San Isidro (Quillota) Putaendo San Pedro Llay-Llay Casablanca Oriente (La Calera) El Sauce (Los Andes) Chincolco4 San Diego (La Calera) Bellavista (Los Andes) El Melón (La Calera) Marine Outfalls Sondaje Miraflores (Los Andes) Lautaro (La Calera) Canal La Compañía (Putaendo) Pachacama (La Calera) PTF5 _Emisario Dos Norte Artificio (La Calera) PTF_Emisario Loma Larga Sondaje 626 and Sondaje Granallas (Putaendo) Hijuelas PTF_Emisario Higuerillas Dren Putaendo (Putaendo) Panamericana (Nogales) PTF_Emisario Concón Oriente PTF_Emisario Quintero Pozo Liceo (Nogales) Llay Llay PTF_Emisario San Antonio Catemu Pozo Andrés Bello (Limache) PTF_Emisario Cartagena Quintero PTF_Emisario El Tabo Rinconada (Calle Larga) Puchuncaví PTF_Emisario Algarrobo San Esteban Aguas Claras (La Ligua) El Carmen (San Felipe) Goenechea (La Ligua) Activated Sludge Plants El Tambo (San Felipe) Quínquimo I (La Ligua) Quínquimo II (La Ligua) El Molino (Quillota) Almendral - Chepical (San Felipe) Papudo Los Maitenes (La Ligua) Santa María La Laguna (Zapallar) Almendral (San Felipe) Cordillera (Los Andes) Cabildo Rinconada (Calle Larga) Southern Coastline Operations Department Petorca Curimón Chincolco Punta Puyai (Papudo) San Juan (San Antonio) Zapallar San Jerónimo (Algarrobo) Cachagua Casablanca La Laguna (Zapallar)
4To date this is a facultative lagoon operating with 14 customers. 22 5PTF: Physical treatment plant BUSINESS VISION AND objectives for the Company, which aims to be where it operates, Esval has an integrated 01.2 acknowledged as a player that is aware of its management system (SIG), whose instruments SUSTAINABILITY social responsibility in the entire region, both are the international certification of ISO on account of respect for the health and life 9001:2000 (quality management system), Esval aims to be a water utility of excellence, of its own personnel or third parties and for OHSAS 18001:2007 (occupational health permanently taking care of and contributing that of its customers. and safety management system), and ISO to the economic, social and environmental 14001:2004 (environmental management development of the region, being an active system). agent for the sustainable development of its Vision environment. This is embodied in its business This SIG covers all its processes, from drinking The company’s service excellence and concern strategy by means of the vision, mission and water abstraction, production and distribution for the environment, along with its active corporate values that guide its operations. to wastewater collection, treatment and contribution to the development of people disposal. It also includes customer service, and the communities where it operates, will administrative procedures, health and safety Mission make Esval valued and appreciated by its in the workplace. customers, employees and shareholders. To provide the best service to all its customers, Moreover, its laboratory has certification making a contribution to the community Corporate Values regarding health, quality of life, conservation pursuant to the NCh 17.025 standard, which of the environment and regional development, regulates its operations pursuant to national • Cordiality, kindness, closeness and respect generating value for its investors. and international requirements. • Technical and service excellence • Proactivity, creativity and innovation The Company’s success is directly related to • Congruence, veracity and transparency Stakeholders the organized effort of all its members and • Unpretentiousness and austerity the development of people comprising it. A key objective of Esval’s mission is for its • Commitment to the community Hence, although achieving good economic management to be renowned as a player results is a necessary condition, it is not the aware of its social responsibility throughout only expression of achievement to assure the Management Systems the region and in relations with its main Company’s development and the wellbeing stakeholders. of its employees. To attain its vision of being a company of service excellence that is concerned about The table below shows Esval’s main stakeholders Service quality, environmental protection the environment, valued by its customers, and the different information channels that and safety in the workplace are priority employees, shareholders and the communities allow for engagement with each of them:
Esval Sustainability Report 2009 23 01 Our Company
STAKEHOLDER COMMUNICATION, DIALOGUE AND/OR ENGAGEMENT MECHANISM
Shareholders and financial market Annual financial report Periodical financial statements Website www.esval.cl
Regulators and controllers Periodical management reports
Authorities Annual financial report Periodical publications Active participation with Governors, Mayors, councilors, UNCOs, etc.
Customers Satisfaction surveys Customer service hotline Commercial offices Website www.esval.cl
Community Healthy Water, Healthy Life campaign Presentation in schools Educational workshops Activities at centers for children whose mothers are seasonal workers “Door-to-door” activities Public events Health program Website www.esval.cl
Political and trade association area Active participation in trade and regional organizations Periodical publications Website www.esval.cl
Suppliers Critical supplier selection and assessment procedure Website www.esval.cl
Workers Collective bargaining processes (every two years) Performance evaluation Intranet Periodical publications Website www.esval.cl
Student and academic area Student practice programs, technical visits to facilities, thesis student programs, research projects Website www.esval.cl
24 01.3 CORPORATE GOVERNANCE AND ETHICS
Esval’s Board of Directors comprised the following members for the year ended December 31, 2009:
Corporate Governance Directors’ Committee President: The Directors’ Committee of Esval, which operated Pedro Pablo Errázuriz Domínguez up to the year ended December 31, 2009, comprised 7.051.188-6, Civil Engineer the following members:
Vice president: President: Jorge Lesser García Huidobro Mónica Singer González 6.443.633-3, Civil Industrial Engineer 7.700.329-0 Directors: Directors: Kevin David Kerr Rodrigo Pérez Mackenna 48.120.866-1, Bachelor of Commerce, Chartered Accountant and CFA Charterholder 6.525.287-2
Rodrigo Pérez Mackenna Alejandro Reyes Vergara 6.525.287-2, Civil Engineer 8.302.295-7
Alejandro Reyes Vergara 8.302.295-7, Attorney
Mónica Singer González 7.700.329-0, Business Engineer The Committee members, Mrs. Mónica Singer Olivia Steedman González and Mr. Alejandro Reyes Vergara, are 48.120.868-8, Civil Engineer directors who are independent of the controller and its related persons.
Esval Sustainability Report 2009 25 01 Our Company
The Directors’ Committee, which operated the Committee approved the terms of the Executive Committees up to the year ended December 31, 2009, addendum or contract that was definitively addressed the following issues concerning entered into with the company Ernst & Esval has an Integrated Management System the 2009 period: Young. This will enable Esval and other (SIG) Committee, made up of the CEO, the • Analysis of the information on operations related companies to use the financial managers of each area, the internal auditor set forth in articles 44 and 89 of Law protection model developed by such and representatives of the managements in N°18.046 and currently regulated by Title company. charge of the environmental, quality, safety XVI of that same law. and occupational health management Lastly, the Directors’ Committee approved systems. • Analysis of the external auditors’ report, the the terms in which Esval will participate balance sheet and other financial statements with the affiliate Aguas del Valle, and its This Committee meets twice a year to review submitted by the company’s management related company Essbio, jointly with Aguas the SIG that has been implemented and to shareholders. Nuevo Sur Maule, DICTUC S.A. and USM certified, so as to assure its convenience, • Proposal of the external auditors and private S.A. in the innovation and development suitability and continuous efficiency regarding risk rating agencies. consortium, whose aim is to develop quality, the environment, and occupational research to address the environmental safety and health. • Review of the remunerations system and challenges of the sanitary industry. This compensation plans for senior managers operation was regulated by articles 44 and There is also an Economic Committee, and executives. 89 of Law Nº18.046 and now regulated by whose responsibility is to approve, within Title XVI of that same law. certain ranges, the disbursements proposed In regard to those operations set forth in by the different areas for their activities and articles 44 and 89 of Law N°18.046 and now The decisions made by the committees whether they are in keeping with the budget regulated by Title XVI of that same law, the entail identifying and managing economic, approved by the Company. This Committee, Committee approved the terms of subleasing environmental and social opportunities and which meets weekly, is made up of the COO, a non-exclusive office with SAESA in the risks. Likewise, in regard to budget issues, CFO, human resources and commercial and district of Las Condes, Santiago, to use it for most of the investments are justified based development managers. holding board and committee meetings and on the management and/or solution of for other meetings the Company must hold environmental or social risks. in Santiago, and this operation is subject to the aforementioned legal provisions. In regard to the board remuneration and fees, the breakdown is shown in the Company’s Moreover, and pursuant to what is laid Annual Report 2009 available on the website down in the mentioned legal provisions, www.esval.cl
26 ESVAL S.A. Organization Chart BOARD For the year ended December 31, 2009
GENERAL MANAGEMENT
PUBLIC CORPORATE INTERNAL RELATIONS MANAGEMENT AUDITING
ENGINEERING LEGAL MANAGEMENT ADVICE
COMMERCIAL & HUMAN RESOURCES DEVELOPMENT MANAGEMENT MANAGEMENT
FINANCE & ADMINISTRATION PLANNING & STUDY MANAGEMENT MANAGEMENT
OPERATIONS MANAGEMENT
Esval Sustainability Report 2009 27 01 Our Company
Senior Executives Chief Executive Legal Advisor Gustavo González Doorman Domingo Tapia Navarro 7.098.884-4, Civil Electronic Engineer 6.645.077-5, Attorney
Engineering Manager Human Resources Manager Leonel Fuentes Espinoza Sergio Pinto Fernández 4.899.487-3, Civil Engineer 8.018.789-0, Psychologist
Commercial and Development Manager Planning and Studies Manager Mauricio Coll Olivares Francisco Ottone Vigorena 11.471.960-9, Civil Industrial Engineer 7.523.281-0, Civil Engineer
Chief Financial Officer Operations Manager Agustín Benavente Font de la Vall George Seal Comte 7.067.713-k, Business Engineer 5.390.299-5, Civil Engineer
28 Legal System and Ownership
As of December 31, 2009, Esval was controlled by the company Inversiones OTPPB Chile Limitada with a 69.77% shareholding. The table below shows the shareholding status of the Company in the period.
NAME OR BUSINESS NAME A series B SERIES C SERIES TOTAL % SHARES SHARES SHARES SHARES
INVERSIONES OTPPB CHILE III LIMITADA 1,122,170,725 - 10,437,782,849,226 10,438,905,019,991 69.77% CORPORACIÓN DE FOMENTO DE LA PRODUCCIÓN 16,945,090 1,083,889,342 4,402,236,893,568 4,403,337,728,000 29.43% INVERSIONES GUALLATIRI LTDA 2,494,988 - 12,132,516,035 12,135,011,023 0.08% SUC. ZAMORA VILLALBA DAVID 1,734,690 - 6,937,025,310 6,938,760,000 0.05% BUSTILLOS MUNOZ MANUEL 1,390,000 - 6,598,610,000 6,600,000,000 0.04% INVERSIONES TACORA LIMITADA 1,192,426 - 5,821,643,775 5,822,836,201 0.04% VALENCIA UBILLA ARTURO 1,333,029 - 5,330,792,582 5,332,125,611 0.04% SOTO PIZARRO RENE 1,333,029 - 5,330,792,582 5,332,125,611 0.04% INVERSIONES LAGOA LTDA. 1,332,491 - 5,328,631,509 5,329,964,000 0.04% CHILEAN TREASURY 877,294 - 3,508,298,706 3,509,176,000 0.02% BANCHILE C DE BOLSA S.A. 572,008 7,877 3,472,468,182 3,473,048,067 0.02% OTHER SHAREHOLDERS 1,505,199,889 96,206 64,055,245,401 65,560,541,496 0.44%
TOTAL 2.656.575.659 1.083.993425 14,958,535,766,916 14,962,276,336,000 100.00%
The Chilean Economic Development Agency (CORFO) is the only shareholder other than the controllers with over 10% of Esval’s capital stock.
Esval Sustainability Report 2009 29 01 Our Company
The controlling group comprises the following members:
A SERIES B SERIES C SERIES TOTAL % SHARES SHARES SHARES SHARES
INVERSIONES OTPPB CHILE III LIMITADA 1,122,170,725 - 10,437,782,849,226 10,438,905,019,991 69.77% Shareholding of Series of Shares 42.24% 0.00% 69.78%
Shareholding of Series with political rights (A & B) 30.00%
MARECO HOLDINGS CORP. 1,487,520,566 - - 1,487,520,566 0.01% Shareholding of Series of Shares 55.99% 0.00% 0.00%
Shareholding of Series with political rights (A & B) 39.77%
TOTAL SHARES RELATED TO OTPPB CHILE III LIMITADA 2,609,692,291 - 10,437,782,849,266 10,440,392,540,557 69.78% Shareholding of Series of Shares 98.24% 0.00% 69.78%
Shareholding of series with political rights (A & B) 69.77%
Control by OTPPB and MARECO is based on a 98.24% shareholding of A series shares, with which they hold 69.77% of the Company’s political rights (30% for the former and 39.77% for the latter).
30 Code of Ethical Conduct
Esval S.A.’s code of ethical conduct was published in late December 2008 and was disseminated to all employees in January 2009 by means of different internal communication channels, mainly the intranet and internal newsletter.
The aim of the code is to be a guide for the conduct of each of the Company’s employees so this is in line with corporate policies and the value and ethical framework defined by the Company for its operations.
The code’s operation considers the presence of various consultation and/or reporting channels, and employees can:
• Address the audit head personally • Send an email to [email protected] • Call the “Integrity Help Line” • Enter the section called Esval - Integro in the intranet. This cannel is also used to provide information on these issues.
When an employee files a complaint, he or she will have all the guarantee of confidentiality and privacy and the information provided will be treated in strict confidentiality.
In 2009, there were no consultations, and 2 complaints were filed through the different channels available.
Esval Sustainability Report 2009 31 01 Our Company
01.4 ASSOCIATIONS AND MEMBERSHIPS
Esval participates as a member in the following social corporations:
• Consejo Asesor de un Techo para Chile. • Cámara Regional del Comercio (CRCP). • Cámara Chilena de la Construcción, Regional Valparaíso. • Asociación Nacional de Empresas de Servicios Sanitarios (ANDESS). • Asociación Interamericana de Ingeniería Sanitaria y Ambiental (AIDIS). • Asociación de Empresas y Profesionales para el Medio Ambiente (AEPA). • Asociación Latinoamericana de Hidrología Subterránea para el Desarrollo (ALHSUD). • Asociación de Industriales de la Región de Valparaíso (ASIVA). • Cámara de Comercio y Turismo de Valparaíso. • Cámara de Turismo de la Región de Valparaíso.
Esval also participates in the following committees and entities:
• Technical support to the government program of high-risk areas. • Corporate Social Responsibility (CSR) committee of the CRCP. • CSR committee of the ASIVA.
32 • Labor study committee (ASIVA). • Tax study committee (ASIVA). • Environmental committee (ASIVA). • Emergency committee (ASIVA). • Business committee Quintero, Concón and Puchuncaví (ASIVA). • Real estate committee of the CCHC. • Communications committee of the ANDESS. • Technical and regulatory committee of the ANDESS.
Awards and Recognition
Esval received the following awards and recognition in 2009:
• Corporate Social Responsibility Award in the large company category by the Regional Chamber of Commerce for the Up-To-Date with Esval program. • Recognition by the Neighbors’ Committee of Viña del Mar for the way Esval forges permanent relations with social organizations.
Esval Sustainability Report 2009 33 02
02.1 MANAGING OUR IMPACT
The operations, engineering, finance and administration, commercial and development, human resources and corporate operation managements are accountable for meeting the Company’s objectives on environmental sustainability. Through their daily work they are directly accountable for the result of the action taken and achieving each of the commitments the company makes in this area.
The environmental management system (SGA) made it compulsory for there to be a lead management for each environmental program promoted by the company. According to this scheme, the management responsible must coordinate the specific activities of the
34 Controlling Our Environmental Impact
program, control its execution and brief the To meet the commitments set forth in the Quality and Environmental Committee on the SIG policy, objectives were set that were progress attained, normally twice a year. At the given a series of indicators, targets and same time, its efforts must be aligned with the control points. They jointly monitor and work of the management representative of the assess whether such commitments are met. SGA, who is in charge of the general coordination In the case of environmental objectives of all the environmental programs. and targets, programs were established to be developed, including the assignment of The environmental management system forms responsibilities, means and timescales to part of the integrated quality, environmental, achieve them. occupational safety and health management system, implemented in 2008, and its scope In 2009, the SIG objectives for the includes the production and distribution of management of environmental impacts were drinking water and wastewater collection focused on preventing contamination from and treatment, including the marketing discharges of liquid waste, improving the and service support processes. Its rationale record of solid waste generation and giving is embodied in the integrated management priority to using the best environmental system (SIG) policy. practice.
Esval Sustainability Report 2009 35 02 Controlling Our Environmental Impact
Esval recertified all its processes pursuant to QUALITY, ENVIRONMENTAL, OCCUPATIONAL HEALTH AND SAFETY POLICY the ISO 14001:2004 standard in July 2008 and will once again undertake recertification in 2011. The water utility Esval S.A. develops drinking water production and distribution and wastewater treatment processes in the Valparaíso Region, which entail the quality of Environmental Investment processes, environmental protection and conservation, and occupational health and safety, by embracing the following commitments: Virtually all the investments made by Esval in infrastructure and maintenance have an environmental component, because they PROVIDING the best service to all its customers, making a contribution to the have a direct impact on the operation of the community regarding health, quality of life and regional development. drinking water production and distribution ADHERING TO laws, regulations and voluntary commitments signed by the systems; wastewater collection and treatment organization. with the correct disposal in the environment. Esval invested over CLP290 billion in EMBRACING a continuous improvement strategy for the processes developed infrastructure and network maintenance by the organization. 1999 through 2009, which have had a direct effect on the environmental progress in the PREVENTING contamination, by reducing waste generation, recycling it or region. disposing of it suitably. Notwithstanding this, as a result of the PREVENTING the occurrence of injuries and occupational diseases affecting its operation of the environmental management employees and interested parties. system some specific investments were CONTRIBUTING to the integrated management of watersheds, the coastline made. For example, in 2009 around CLP20 and sustainable development of the Valparaíso Region by active participation billion were invested in regularizing fuel storage tanks, CLP40 billion in chemical in the pertinent instances generated, thereby improving the quality of life of its containment works6, CLP19 billion in noise inhabitants. pollution mitigation works, and CLP33 GIVING PRIORITY TO adopting the best environmental and safety practice with billion in rectification works due to audits of the technology available, related to the services provided to the organization. facilities. Most of these investments arose from the objective of complying with the current regulation and maintaining the ISO THE SUCCESSFUL COMPLIANCE WITH THIS POLICY ENTAILS THE CONTRIBUTION OF ALL THE 14001 certification. AREAS OF THE ORGANIZATION, AND MANAGEMENT IS ACCOUNTABLE FOR ITS DISSEMINATION AND PROMOTION.
6Tanks containing sodium hypochlorite, a sodium fluorosilicate solution, potassium permanganate and ferrous chloride used in the drinking water production and wastewater treatment processes. 36 02.2 WATER AND BIODIVERSITY Drinking Water Production 2007-2009 (m3)
3 Water Production m Surface Water Groundwater Total
Esval’s operations management keeps a 2007 84,020,876 74,132,294 158,153,170 record of the water production by productive system and source to establish the origin of 2008 83,455,208 75,872,401 159,327,609 drinking water. 2009 87,825,138 73,659,139 161,484,277 Esval’s operations concern channels, rivers, brooks, springs, groundwater, the Surface Water Abstraction Peñuelas and Los Aromos dams, related to the watersheds of the Aconcagua, Maipo, Quantity (N° of Sources) Main Locations Petorca and La Ligua rivers, and the coastline. Such operations entail water abstraction for potabilization and the discharge of Aconcagua river, Marga Marga brook wastewater from its treatment plants. Serrano channel Maipo river 13 La Petaca channel El Tigre ravine Waddington channel Agua Salada brook 3 Esval produced 161,484,277 m of drinking La Compañía channel Lilén brook water in 2009, which was equivalent to the Peñuelas dam total annual water consumption, of which 87,825,138 m3 came from surface sources and 73,659,139 m3 from groundwater sources. Groundwater Abstraction Quantity Main Locations To produce drinking water, in 2009 the (N° of Sources/ Borings) Company obtained this resource from 13 surface sources and 113 groundwater Las Vegas (Hijuelas) groundwater gallery sources. Concón borings SPAP7 Parrones-Covarrubias-Charravata (Quillota) Pachacama (La Calera) borings SPAP Goenechea (La Ligua) 113 SPAP Artificio SPAP Cabildo San Juan (San Antonio) borings O’Higgins (Casablanca) plant SPAP El Carmen (San Felipe) SPAP El Sauce (Los Andes) SPAP San Esteban SPAP Llay-Llay
7SPAP: Drinking Water Production System Esval Sustainability Report 2009 37 02 Controlling Our Environmental Impact
Biodiversity water courses in the region not to be • Effluents9: Two to four samples are taken and Water Abstraction affected by wastewater discharges and the a month to verify compliance with Supreme biodiversity conditions of the Valparaíso Decree N°90 SEGPRES (Table Nº5: Discharge During the process of extracting water for Region are being maintained. In the case outside the Coastal Protection Zone). the production of drinking water there of marine outfalls, whose water has not are no specific indicators on its impact on been treated biologically, the environmental • Beaches: There is weekly monitoring in the the biodiversity, be this biotic environment monitoring program (PVA) has proven that summer and this is monthly in the winter. their impact is minimal and marginal, as it is (human health, flora and fauna) or the • Marine environment: Quarterly and half- only limited to the immediate perimeter of physical environment. yearly samples are taken from the sea the seabed where the water is discharged. surface and at different depths. Nevertheless, Esval also takes care of those places of great significance in terms of In regard to marine outfalls, a monitoring • Marine sediment: Samples are taken diversity, like the Peñuelas Lake and the Poza program is undertaken which meets the quarterly and half-yearly. Azul abstraction plant. Regarding these, the monitoring and follow-up requirements Company has promoted the preservation of laid down by the maritime authority • Tidal and sub-tidal benthic resources10: their natural conditions free of contamination, (General Directorate of Maritime Territory Monthly samples are taken, especially in the for example banning access to people who and Merchant Navy (DIRECTEMAR)), the zones around the operation areas. might damage the ecosystem by using it for Superintendency of Sanitary Services, the recreation or sports. The characteristics of Directorate of Fisheries (SERNAPESCA), • Oceanographic monitoring: Studies are the Peñuelas Lake and Poza Azul were widely the Regional Ministerial Secretary (SEREMI) made of marine currents and the physical presented in the 2008 report8. of Health of the Valparaíso Region and properties of the sea in the discharge the respective environmental qualification areas. Biodiversity resolution of the National Environmental and Wastewater Treatment Agency (CONAMA). The environmental monitoring programs are carried out by the Faculty of Marine Sciences The wastewater treatment plants currently The environmental monitoring programs and Natural Resources of the University of operating at Esval have enabled the surface monitor: Valparaíso. Its functions include taking land
8www.esval.cl/Inversionistas/ReporteDeSustentabilidad/2008/index.html 9 Water discharge from a treatment plant. 10 These are organisms and species that inhabit the beach and the deep-water seabed. 38 and marine surface samples and at different the Chilean NCh-ISO 17.025 standard. The Authorities of Valparaíso and San Antonio, depths, producing and interpreting results analyses of the marine and benthic fauna the Directorate of Fisheries (SERNAPESCA)11, and issuing quarterly, half-yearly and annual are made at specialized laboratories of the the Regional Ministerial Secretary (SEREMI) reports with assessment reports for each University of Valparaíso. of Health, the Superintendency of Sanitary outfall. Services (SISS)12 and National Environmental A test report is released every month for Agency (CONAMA)13, who also receive the Most of the physical, chemical and each outfall with the results of the analyses scientific and technical reports released by the bacteriological analyses of the water samples of the samples taken of effluents, from University of Valparaíso. are made at Esval’s laboratory, which is certified beaches and the marine environment. These by the National Standards Bureau pursuant to are sent monthly for assessment to the Port
DUE TO THE WASTEWATER TREATMENT PROCESSES UNDERTAKEN WITH THE HIGHEST STANDARDS AND ADHERING TO THE CHILEAN REGULATION, 100% OF THE WASTEWATER TREATED AND DISPOSED OF IN RIVERS AND BROOKS CAN BE RE-USED FOR IRRIGATION.
2007 2008 2009
WATER THAT CAN BE 34,362,119 35,946,212 35,883,069 RE-USED M3/YEAR*
*Meets Supreme Decree N°90 which classifies the irrigation standard.
11www.sernapesca.cl 12Superintendency of Sanitary Services (www.siss.cl) 13www.conama.cl Esval Sustainability Report 2009 39 02 Controlling Our Environmental Impact
EMISSIONS Odor and Noise Management to the operative areas and the corresponding 02.3 solutions are proposed and implemented. Odors are a significant emission for the Esval’s operations produce a low quantity surrounding community and are mainly related Another emission that has a large impact on of airborne emissions, and this mainly arises to the wastewater treatment process. There is surrounding communities is noise pollution. In when it must use diesel-powered generating a special environmental program to manage 2009, Esval invested CLP19 million in works to equipment at drinking water and wastewater them, which considers the measurement of mitigate this kind of contamination. treatment plants and stations. gases at wastewater pumping stations (EEAS), the installation of an odor treatment system, This investment was made to carry out 8 noise The combustion of these generates the such as gas scrubbing, essence dosage and an mitigation works at the wastewater pumping following contaminants: CO, NOx, SOx, activated carbon filter. stations of: Curauma, Cruz de Lorena in volatile organic compounds (VOCs), Quilpué, Puerto de Cartagena, Pedro de NH3, total suspended particles (TSP) and The objective is to reduce the number of Valdivia in Concón, Diego Portales and Sótero particulate material (PM-10). The table below service requirements because of bad odors at del Río in San Antonio; and at the drinking shows an estimate of the emissions of these facilities. When these arise, they are logged in water pumping stations (EEAP) of Placilla and contaminants in 2009. the customer service system and are referred Estanque Esperanza in Quilpué.
Total Estimated Emissions14 for Esval’s Generators (t/year) 2009
s ESTIMATED CONTAMINANT MP MP10 MP2,5 CO NOX VOC SOX NH3 CO2
EMISSIONS (T/YEAR) 3,42 1,72 0,41 10,52 48,71 3,87 2,58 0,0085 1897,46
14Values estimated using the formula indicated in the methodological guidelines for estimating airborne emissions of fixed and mobile sources in the Contaminant Transfer and Emissions Record 40 [RETC] (CONAMA- MINSAL). 02.4 WASTE Solid waste generated by type and disposal (tons) 2007-2009 The more than 300 facilities belonging to the Type of Solid Waste Company generated an estimated figure of TONs Final Disposal 12,547 tons of solid waste in 2009, which Generated was a 108.9% increase on the 6,006 tons in 2007 2008 2009 2008. Such increase was mainly due to the greater detail of logging debris waste, which in 2008 accounted for 54.4% of the annual Solid Domestic Waste 37.7 39.3 73.8 total in tons and in 2009 was 76.7% of the El Molle in Valparaíso, La Hormiga in total weight of solid waste generated. San Felipe and Altos de Cartagena waste dumps. The control and logging of solid waste adhered Domestic-assimilable 2,768 2,683 2,846 to the guidelines of the SGA, as outlined and Solid Waste reported in the Sustainability Report 2008. The table below shows the type and quantity of Paper is sent to SOREPA15 Computer solid waste generated in the period. Recyclable Solid 8.7 9.8 1.57 equipment is sent to RECYCLA16 Waste
Used oils are sent to the recycling company Bravo Energy17 and Cemento Polpaico. Others (containers contaminated with Hazardous Waste 6.6 8.6 7.37 fluoride, containers with chemicals or reagents, lead washers, fluorescent tubes, small batteries and batteries) are sent to specially implemented facilities that are authorized to destroy them.
This goes to the waste dumps of each Debris N/D 3,265 9,618 work site.
YEARLY TOTAL 2,821 6,006 12,547
15www.sorepa.cl/ 16www.recycla.cl/ 17www.bravoenergy.com/htmlPages_Esp/chile.html Esval Sustainability Report 2009 41 02 Controlling Our Environmental Impact
Dehydrated Sludge The dehydrated sludge is generated at four Dehydrated Sludge plants: Los Maitenes (La Ligua), Cordillera (Los Generation by Plant (m3) Wastewater treatment using activated sludge Andes), Almendral (San Felipe) and El Molino technology generates dehydrated sludge with (Quillota). various degrees of humidity ranging from PLANT 2007 2008 2009 60% to 85% base humidity (b.h.). The volume As of December 2008 and throughout 2009, generated in 2009 was 27,789 m3, which was all the dehydrated sludge generated at the a 7.2% increase on the 26,004 m3 generated La Ligua, San Felipe, Los Andes and Quillota La Ligua 2,505 3,360 3,045 in 2008. Such higher volume of sludge was due plants was disposed at the KDM Lomas Los San Felipe 6,795 7,123 9,402 to greater wastewater loads and the increase Colorados sanitary landfill in Til-Til, and was in the volume of wastewater treated. disposed with urban solid waste. Los Andes 6,510 7,045 6,417
Quillota 8,625 8,476 8,925
ANNUAL TOTAL 24,435 26,004 27,789
Dehydrated Sludge Generation 2007-2009
29,000
28,000
27,000 DISCHARGES 26,000 02.5
25,000 There were no environmental emergencies in 2009 related to the operation of wastewater Cubic Meters 24,000 treatment plants and pumping stations.
23,000 This was the outcome of a series of measures taken to boost the wastewater collection 22,000 systems consisting of:
2007 2008 2009 Years
42 • Increasing or boosting the mobile guard Sewer Overflows Chemical Emergencies operational coverage, especially during the summer. Wastewater can upwell and spill onto roads There were three chemical emergencies in 2009, which can be qualified as isolated if one considers • Special plan to clean wastewater pumping and inside housing, mainly due to third-party that 80 facilities of Esval make intensive use of station (EEAS) wells and screens. misuse of the sewer system and deficiencies of the public wastewater collection system. these raw materials throughout the year. • Special plans to review pumps, generators and switchboards. • There was a leakage of chlorine gas in the These operational emergencies are specific booster pump room of the chlorine dosage • Co-ordination of the maximum diesel load of cases, but more frequent and less serious, system of the Cordillera de Los Andes generators. and their hydraulic solution18 is managed wastewater treatment plant, which was • Acquisition of new pumps and generators. through the internal operational service contained by closing the container valves. system (SISDA). • Special plan to clean critical collectors. The lines and equipment affected were repaired and cleaned and operators were Despite this, if discharges arise, the following is In addition to this, for these kinds of faults the retrained on handling chlorine gas the procedure for dealing with them: area where the wastewater spill and/or run- containers. off have occurred is cleaned and disinfected to mitigate the damage caused. 1. General clean-up of the collector using water • The chlorination system vent was activated jet and combined trucks. at the El Llano de Putaendo drinking Should there be damage to chattels or real water plant and chlorine gas was released 2. Clean-up and sanitization of the backyard of estate damage, a special report is issued by into the atmosphere, which was quickly houses located in the sector. a damage inspector to subsequently, through rectified and there were no consequences. 3. Street clean-up and sanitization. the legal advisor, compensate if applicable, and reach an indemnity agreement with the • There was also an emergency caused by 4. Removal of the wastewater-contaminated party affected. third parties spilling liquid and solid industrial material and repair of the earth road by filling waste (RILES) from the plant of CODELCO’s it with borrowed fill material. In 2009, there were an average of 105 co- Andina Division at Saladillo into the river 5. A sample shall be taken of the water from the llector obstructions a month with upwelling Blanco. This river supplies the El Sauce de coastline affected to assess the impact of the on the highway and/or customers’ homes Los Andes surface drinking water plant. The wastewater spill. affected, which was a 52% drop on the 218 surface area of the plant therefore had to be average obstructions a month in 2008. This shut down for 7 hours as a preventive measure 6. The environmental authorities shall decrease was due to a special plan to clean with operation using borings, and samples be informed, reports be issued and the up critical collectors and the annual mainte- were taken from the river to assess the impact environmental impact be assessed. nance plan. of the spill but there was no contamination.
18 The hydraulic solution entails repairing or unblocking piping to restore the sewer to normal operation. Esval Sustainability Report 2009 43 02 Controlling Our Environmental Impact
02.6 RAW MATERIALS
Chemicals like chlorine gas, sodium hypochlorite, ferrous chloride, aluminum sulfate and fluoride are the main raw materials required in the drinking water production and wastewater treatment processes. Due to the potential risks of some of these elements, Esval has a series of procedures and instructions for the operational handling of these substances during transportation, loading and unloading, storage and dosage stages. These criteria also include action guidelines in emergencies like spills and leakages to protect workers and prevent toxic emissions from being released into the environment.
Regarding this, in 2009 Esval invested CLP40 million in building 61 chemical containment systems to prevent the contamination of the soil and groundwater if there is a spill. Such situations are set forth in Supreme Decrees (D.S.) 148 and 46.
Another significant raw material is piping of different material and diameter for drinking water distribution and wastewater collection.
95,794 meters of piping were added to Esval’s network in 2009, with the drinking water network accounting for 41,699 meters and the wastewater network for 54,095 meters.
44 Main Raw Materials 2007-2009 DRINKING WATER WASTEWATER TOTAL CHEMICALS 2007 2008 2009 2007 2008 2009 2007 2008 2009
Chlorine Gas (kg) 452,806 489,049 666,452 149,288 168,078 194,893 602,094 657,127 861,345
Fluoride (kg) 151,559 164,597 163,881 151,559 164,597 163,881
Ferrous Chloride (kg) 428,107 423,178 379,261 119,753 120,708 96,682 547,860 543,886 475,943
Aluminum Sulfate (kg) 985,521 1,319,577 1,112,680 80 985,601 1,319,577 1,112,680
Sodium hypochlorite (l) 103,426 111,359 133,138 455,519 489,463 440,027 558,945 600,822 573,165
Caustic Soda (l) 230,676 216,805 196,326 4,177 64,205 104,889 234,853 281,010 301,215
Activated Carbon (kg) 36,575 59,466 48,122 6,925 8,650 43,500 68,116 48,112
Lime (kg) 268,987 94,703 37,121 268,987 94,703 37,121
Potassium Permanganate (kg) 5,973 7,945 5,636 5,973 7,945 5,636
Herbicide (l)
Saltpeter (kg) 1,000 1,000
Salt (kg) 45,577 46,462 52,097 45,577 46,462 52,097
Sulfuric Acid (l) 4,370 4,370
Cationic Polyelectrolyte (kg) 14,713 17,319 11,795 14,713 17,319 11,795
Sodium Carbonate (kg) 1,611 997 1,611 997
Calcium Hypochlorite (kg)
Polymer (kg) 40,106 39,302 36,262 40,106 39,302 36,262
Copper Sulfate 1,759 1,524 1,345 1,759 1,524 1,345
Esval Sustainability Report 2009 45 02 Controlling Our Environmental Impact
02.7 ENERGY Direct energy consumption from primary sources
The generators at the drinking water and Direct Electric Energy Consumption (kWh) wastewater treatment plants and stations 2007-2009 consumed 724 m3 of diesel in 2009 to generate electricity, which was a 19.6% drop in fuel consumption on the 901 m3 consumed 2007 2008 2009 Energy Consumption in 2008. This was due to the lower use of kWh kWh kWh this backup equipment during peak hours on account of a special contract entered into Drinking Water Production & Distribution 56,703,019 69,356,024 70,438,689 with electric power generating companies. Wastewater Collection & Treatment 30,677,284 29,601,981 30,039,078 Direct energy consumption from secondary sources Offices & Facilities outside the Processes 1,141,548 1,035,197 1,147,881
The table below shows the total use of Total kWh 88,521,851 99,993,202 101,652,648 electric power in each of the drinking water production and distribution and wastewater collection and treatment processes.
46 Esval launched an energy efficiency plan Direct Electric Energy Consumption at Commercial and in 2008 with a target of reducing energy Administrative Facilities (kWh) consumption at its commercial and administrative facilities. A 2.45% reduction 2008-2009 in electric energy consumption was attained in 2009 due to the optimization of electrical YEAR TOTAL ANNUAL CONSUMPTION installations and the dissemination of good practice in energy use. 2008 1,228,886
2009 1,198,850
Total kWh
Esval Sustainability Report 2009 47 03
03.1 OUR CUSTOMERS
The commercial and development management is in charge of establishing and developing Esval’s customer relations. This is done by processes defined in the Company’s integrated management system, which cover all the interrelations that can be established with the customer, categorized into the following areas:
• New customers (new services). • Commercial cycle (billing, collection and payment). • Customer service (customer service and service processing). • Contact with the community (continuous improvement of the service, process efficiency).
To optimally address each of these areas, the commercial and development management has customer service and new service assistant managements. These units are in ongoing communication with the operations and engineering managements, which allows
48 Customer Relations
for constant coordination to assure product requirements, Esval’s commercial activities are quality, harmlessness and safety. split into two large groups of users.
Esval’s commitment is to provide the best 1. Household or Residential Customer service to its customers to make a contribution to the community in terms of health, quality This includes household connections to of life and regional development. the drinking water network and/or public sewer network. These are continuous The work of management in 2009 was services 24 hours a day, 365 days a year, focused on: stepping up direct contact with also including: the community and social organizations, the optimization of its customer service Customers from High-Risk Sectors Call Center, setting up roundtable meetings These are low-income customers, sometimes with neighbor committee leaders and local below the poverty line, who benefit from a authorities, mitigation plans after network drinking water consumption subsidy, and renewal works, scheduled water cuts, and other programs like Up-To-Date with Esval. assessing customer satisfaction. 2. Commercial and/or Industrial Customers Customer Classification This category includes all those customers Based on the characteristics, location and who undertake productive activities or needs of its customers and to provide them services, such as supermarkets, hotels, a more satisfactory service according to their restaurants, etc.
Esval Sustainability Report 2009 49 03 Customer Relations
Customers by real estate purpose and type of service19
CUSTOMERS BY REAL ESTATE PURPOSE
COMPANY TOTAL CUSTOMERS 2009 2009 SHARE RESIDENTIAL COMMERCIAL INDUSTRIAL OTHER
ESVAL S.A. 529,951 12.07% 502,167 25,037 783 1,964
CUSTOMERS BY TYPE OF SERVICE
DRINKING WATER JUST DRINKING JUST AND SEWERAGE WATER SEWERAGE
475,593 53,667 691
03.2 CUSTOMER SERVICE AND 3. Written communication service (letters and The operational service is classified and sent website). to the operations management for verification SATISFACTION and solution, if applicable. Site action is The commercial service received by any of also logged in the commercial system for The customer service process enables Esval to these three channels is classified as: inquiries20, subsequent customer consultation. maintain permanent contact with customers complaints21 and requirements22. and thereby meet their needs and address The main reasons for customer requests their concerns. This process is made up of The commercial service is classified and are: commercial situations largely related three main service channels: sent to the commercial and development to information on water bills, consumption management for analysis, solution and metering and the feasibility of receiving 1. Telephone service (Call Center). reply. The latter is available in the company’s service, and operational situations related to 2. Personal service (23 commercial offices). commercial system. site works.
19SISS management report 2009 20Any information request that involves providing data, general information or advice is resolved immediately. 21Any customer service request or requirement that is a complaint (explicit or implicit) about the service received. 22Any customer requirement, which is answered by company action to give the customer a new service, expand that currently provided or modify the data in the company database. 50 Number of Complaints-Inquiries 2008 - 2009
2008 2009
COMMERCIAL COMMERCIAL SISDA TOTAL SISDA TOTAL COMPLAINTS REASON COMPLAINTS 2008 2009 In the No In the No In the No In the No customer’s rationale customer’s rationale customer’s rationale customer’s rationale favor favor favor favor
Excessive consumption and reading 6,246 5,867 12,113 4,242 6,911 11,153
Debris & others in the street 117 71 308 970 1,466 150 76 450 687 1,363
Meters 1,604 265 1,869 2,118 564 2,682
Other commercial reasons 2,222 6,597 8,819 3,707 7,045 10,752
TOTAL PER REPLY 10,189 12,800 308 970 24,267 10,217 14,596 450 687 25,950
GENERAL TOTAL 22,989 1,278 24,267 24,813 1,137 25,950
CUSTOMERS B COMMERCIAL 497,990 510,286
RATE [(Complaints/ Customers)* 100] 4.62 0.26 4.87 4.86 0.22 5.09
It should be highlighted that the The following was the outcome of this insight survey: Superintendency of Sanitary Services (SISS) released the study “Water Utility Service AVERAGE SCORE OF THE SECTOR ATTRIBUTE Quality Insight” in the first half of 2010. 2008 2009 This was undertaken late 2009 through 23 early 2010 to assess the impressions and 1. OVERALL SATISFACTION WITH THE SERVICE RECEIVED 5.5 5.6 experiences of customers supplied by the 20 2. DRINKING WATER SERVICE EVALUATION 5.3 5.3 largest water utilities operating in Chile. 3. SCHEDULED DRINKING WATER CUTS 4.4 5.5 4. SEWERAGE SERVICE EVALUATION 4.9 5.2 The study envisaged a sample of 8,773 5. TELEPHONE SERVICE 5.0 5.0 customers distributed throughout the country, 6. SITE SERVICE 5.0 5.4 considering customers living in the regional 7. STREET WORK 5.4 5.4 capitals and also in the main towns. 8. COMMERCIAL OFFICE SERVICE 5.3 5.4 9. BILLING DOCUMENTS: WATER BILL 5.8 6.0 10. METER AND METER READING 5.7 5.8 11. PAYMENT OF BILLS 5.9 6.0
23Period before the earthquake and tsunami of February 27. Esval Sustainability Report 2009 51 03 Customer Relations
In the particular case of Esval, the Company obtained a score of 5.9, which was an increase on the 5.6 score attained in the 2008 survey. The 2009 score ranks Esval in third place in Chile, after Aguas del Valle (an affiliate of Esval in first place, which provides services in the Coquimbo Region).
Score attained by Esval
SCORE ATTAINED BY THE COMPANY ATTRIBUTE 2008 2009
1. OVERALL SATISFACTION WITH THE SERVICE RECEIVED 5.6 5.9 2. DRINKING WATER SERVICE EVALUATION 5.3 5.6 3. SCHEDULED DRINKING WATER CUTS 4.3 5.8 4. SEWERAGE SERVICE EVALUATION 5.2 5.5 5. TELEPHONE SERVICE 5.1 5.3 6. SITE SERVICE 4.9 5.7 7. STREET WORK 5.1 5.6 8. COMMERCIAL OFFICE SERVICE 5.5 5.8 9. BILLING DOCUMENTS: WATER BILL 5.9 6.1 10. METER AND METER READING 5.8 6.1 11. PAYMENT OF BILLS 6.2 6.2
In the particular assessment of Esval regarding the eleven variables analyzed, it can be seen that for all the customer contact channels (telephone service, site service, commercial office service) the score was higher than in 2008, which reflects the work done last year on policies, targets and community engagement strategies.
52 Customer Satisfaction The survey result reveals an improvement on • Telephone operator’s willingness to solve Survey 2008, with a 4-point increase in customer their problem. insight of the service quality provided by Esval. • Clarity of the response given. As part of its service quality continuous improvement policy, Esval undertakes Another important highlight in the area • Overall telephone service. periodic customer satisfaction surveys. of customer access to the commercial and The information obtained by the Company operations area was the improvement of the results in traceable and measurable action customer telephone service (Call Center) in plans, which each management is involved 2009 to boost daily analysis and for online in until better rates are attained. assessment of calls and assignment of responsibilities by work areas. Every year Esval undertakes at least two service quality surveys to appraise the Customers were surveyed after they had made degree of customer satisfaction with the calls in the April to December 2009 period service. The results of these surveys are to assess the service quality received. The disseminated to the different areas to following were the questions asked: strengthen the positive aspects and work on current weaknesses by generating projects and • Waiting time to be attended. action for improvement. • Friendliness of the telephone operator.
Customer Satisfaction Survey Result
6 & 7 SCORE % 2008 2009
SERVICE QUALITY PROVIDED 61 65 REQUIREMENT RESPONSE TIME 55 51 COMPLAINT RESPONSE SERVICE 51 51 CORDIAL USER SERVICE 66 68 FOCUSED ON MEETING THE CUSTOMER NEEDS 55 51 CLEAR AND ACCURATE WATER BILLS 59 61 SUITABLE SERVICE CHARGES 49 51
Esval Sustainability Report 2009 53 03 Customer Relations
The graph below shows the overall telephone service level in the result of these surveys. It should be highlighted that the satisfaction level exceeded 80 points throughout the assessment period, considered to be a level of telephone service excellence.
Telephone Service Survey Scores of 1 to 4 Overall Telephone Service Scores of 6 The following are the main customer service Scores of 7 and satisfaction challenges in 2010:
Percentage • Telephone Service: Innovation of the personalized customer contact procedure to 90% inform them of the results of their concerns, requirements and complaints as soon as 80% possible to improve customer insight.
70% • Commercial Offices: Development and implementation of new technologies to 60% enhance the service quality by means of 61 65 62 59 59 54 55 60 63 modern self-consultation equipment, 50% which is a technological system that allows for online monitoring. A project will also be 40% launched in 2010 to modernize the look and comfort of the commercial offices. 30% • Integrated customer response system: 20% Implementation of a continuous customer 30 28 27 26 27 26 communication improvement process. 10% 24 23 24
0% -2 -3 -6 -6 -7 -5 -4 -5 -6 -10%
Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
54 03.3 CUSTOMER INFORMATION commercial service will be boosted by establishing work roundtables with social AND SUPPORT organizations, especially with the communal associations of neighbors’ committees and Customer Information social organizations. It will thereby engage with the leaders, who in turn receive and Esval’s main concern is its customers and transmit community concerns. 30 work its actions are focused on continuous roundtables were established in 2009. improvement of the service quality in a context of supporting the region’s social, The way Esval informs the community about economic and environmental development. issues like subsidies, scheduled water cuts, works and others is outlined below. Ongoing customer and general community contact and information are therefore • Subsidies: This information is provided essential. Regarding this, in 2009 the jointly with the social departments of the Company started to develop a project, different Municipalities, based on the which will be fully implemented in late 2010, subsidies available. All customers with to modernize the quality and utility of its the benefit already granted are also given website. information on their water bills, at the offices and by means of the telephone The changes are focused on changing the service before the expiry date. This is so image and on providing a quicker service customers renew the benefit before the sector and their location, the Company and better quality of information to users. expiry date. It is important to mention works with a water cut committee, which Besides this, it will be boosted as a virtual that this information is also provided in in practice has the objective of reducing the branch, becoming a new communication the different workshops the Company holds impact of the supply interruption, either by channel, enabling water bills to be paid with the neighbors’ committees. The subsidy installing tanks or hydropacks (an automatic online, requirements and complaints to be coverage percentage in the region was 98% water pressurization system that is entered and followed up, and an agreement as of December 2009 due to information connected to the water mains). There were to be simulated and generated, among other activities, along with those of supporting 238 scheduled water cuts in 2009. functions. With all this, the Company aims to the securing and renewal of subsidies. increase customer communication through this channel in line with the progress of • Scheduled water cuts: Pursuant to the 2008 2009 VARIAtIoN technology and the facilities provided by the sanitary regulation, all customers affected internet. must be informed of all scheduled water SCHEDULED WATER CUTS 239 238 cuts at least 48 hours in advance. Besides UNSCHEDULED WATER CUTS 2,695 2,237 -16% Moreover, and taking advantage of the this information and depending on the positive experience of previous years, the quantity of customers affected, on the CUSTOMERS AFFECTED 618,806 595,181 -4%
Esval Sustainability Report 2009 55 03 Customer Relations
• Works: There is a systematic customer A large portion of the Company’s activities by a team of social workers. The second information delivery procedure for are therefore focused on supporting its low- entails inviting them to an education investment works carried out by the income and/or high-risk customers to facilitate workshop on water consumption and Company in different areas. access to drinking water and treatment. the responsible use of sewers, which is undertaken at the different commercial Information is delivered by means of The following are the main programs offices. After this workshop has been meetings of Esval’s customer assistant undertaken by Esval for this: completed, a debt repayment agreement management team with neighbors’ is entered into with each of them, which committees, communal associations, local Training on the responsible use of they must pay in monthly installments health councils, among others, in sectors sewers and water with the commitment that for each where the works will be undertaken to give installment paid Esval will reduce the last them details of the timescales and stages of The “Up-To-Date with Esval” program has installment of the agreement. The third the works, the benefits for the sector and 3 execution stages. The first concerns the and final part consists of giving these the mitigation works implemented. target sector of this program (high-risk same customers a plumbing workshop to customers with less than 11,000 points on give them the tools needed so they can Action was stepped up in 2009 to inform the the social protection record), and all these fix any faucet or toilet wear and tear in general community and social organizations customers are contacted and visited on site their homes. about providing information on works to be carried out in the year, particularly those concerning network renewal. Site meetings were therefore encouraged, summoned through the neighbors’ committees, which enabled the communities to clearly understand the scope of the works to be undertaken, their benefits and timescales, the amounts involved and the mitigation measures such works would have on the environment.
Customer Support
As already mentioned, Esval’s commitment is to provide the best customer service to make a contribution to the community regarding health, quality of life and regional development.
56 Up-To-Date with Esval Workshops and Agreements 2007-2009
Nº OF AGREEMENTS Nº OF AGREEMENTS Nº OF AGREEMENTS PROVINCES PROVINCES PROVINCES WORKSHOPS SIGNED WORKSHOPS SIGNED WORKSHOPS SIGNED
VALPARAÍSO 209 2,479 Valparaíso 222 2,241 Valparaíso 225 2,273
QUILLOTA-PETORCA 34 334 Quillota - Petorca 55 370 Quillota - Petorca 72 591
SAN FELIPE-LOS ANDES 43 482 San Felipe - Los Andes 75 285 San Felipe - Los Andes 51 883
SAN ANTONIO 39 177 San Antonio 54 742 San Antonio 83 304
2007 total 325 3,472 2008 total 406 3,638 2009 total 431 4,051
Support for securing and renewing drinking water subsidies like the social programs of municipalities. Subsidies Assigned On this occasion, the Company worked 2007-2009 Every three years there is a mass expiry of with the DIDECOS of the provinces of drinking water subsidies. At such time, Quillota, Petorca, San Felipe, Los Andes 2007 2008 2009 Esval coordinates with the different social and Greater Valparaíso. In the latter case, departments of the municipalities to offer the head of monetary benefits and social SUBSIDIES ASSIGNED 87,117 89,117 91,693 support for renewing these subsidies. protection record of the Planning Ministry % OF SUBSIDIES ASSIGNED (MIDEPLAN) also attended the meeting 95.20 95.72 97.91 Regarding this and to collaborate so all the held. % OF CUSTOMERS WITH SUBSIDIES 17.76 17.81 17.89 people meet the requirements set forth in the regulation and can get a drinking water The results of these proceedings in 2009 subsidy (SAP), in 2009 Esval coordinated enabled 97.91% of a total of 91,693 a series of meetings with the community subsidies to be assigned. 17.89% of development departments (DIDECOS), Esval’s total customers currently have this which cover relations with organizations important benefit.
Esval Sustainability Report 2009 57 03 Customer Relations
Support for High-Risk Sectors the request for support from the regional sectors, which increased from 360 to the government to analyze a sanitary solution current 450 sectors. Areas that have no access to services like for high-risk sectors defined by the Planning drinking water, sewers, electric power and Ministry (MIDEPLAN). connectivity to towns are classed by the After studying and analyzing this authorities as high-risk sectors. It is deemed Among other activities, in 2009 Esval information, Esval reviewed the new that satisfying this deficiency is a priority participated on various regional working sectors defined by the authority, which so families can live with the minimum roundtables to analyze the general meet the conditions for undertaking a standards of civilization. situation of high-risk sectors. It should be conceptual study on a technical solution highlighted that with the support of the for supplying drinking water and collecting In its unwavering commitment and support region’s municipalities, MIDEPLAN drew up and treating wastewater. The result of this of the poorest sectors, Esval accepted and delivered Esval a new list of high-risk study is shown in the table below:
Table summarizing the classification of sectors on the list of high-risk sectors 2009
SECTORS THAT WILL NOT SECTORS WITH RURAL SECTORS TO BE BE ADDRESSED WITH A TOTAL SECTORS DRINKING WATER (APR) SECTORS SECTORS WITH SECTORS WITH A ANALYZED FOR THE WITH WORKS EXECUTED CONCEPTUAL CONCEPTUAL STUDY POSSIBILITY ON THE LIST OF HIGH-RISK SECTORS HIGH-RISK PROJECTS OR BEING STUDY IN 2008 OF UNDERTAKING REQUIRES A CONCEPTUAL SECTORS 2009 With APR With APR EXECUTED LANDS TO BE COMPLEX EXPROPRIATED STUDY Design Works SOLUTION
QUANTITY OF SECTORS 8 17 27 6 60 159 12 161 450 PER DISTRICT
QUANTITY OF HOUSES WITH A DRINKING WATER BENEFIT 718 2,098 459 350 4,078 5,778 219 4,416 18,116
LENGTH OF DRINKING WATER 54,402 NETWORKS (m) 41,884 60,560 12,421 5,334 7,322 181,923
QUANTITY OF HOUSES WITH A 2,327 4,163 2,437 561 5,325 12,957 425 11,232 39,427 SEWERAGE SYSTEM BENEFIT
LENGTH OF SEWERAGE 98,691 NETWORKS (m) 5,406 15,792 9,427 16,707 146,023
58 In 2010 Esval hopes to carry out 16 conceptual studies of the current list of high-risk sectors. It will also undertake the detailed drinking water and sewerage engineering projects and their related household projects for the high-risk sector called Parcela 15 where 211 families live.
Rural Drinking Water (APR)
Pursuant to Law N°19.549 of 1998, the urban sanitary service concession companies shall provide technical and administrative assistance to the rural drinking water committees and cooperatives in their respective regions and undertake the activities needed to carry out reimplementation and improvement works and design new rural services, all this upon the request of the Ministry of Public Works. Assistance includes accounting and technical issues and the management of the design and works for rural drinking water systems, training and technical • Technical Advice: entails advising on 150 technical inspection are made, and the inspection. rural drinking water systems present in the studies are finally approved, or the works Valparaíso Region regarding administrative, are given reception, as the case may be. The rural drinking water program is supervised technical, accounting and social issues, by the Department of Sanitary Programs (DPS) and promoting the self-management of the • Direct Advice to the DOH: advice on belonging to the Department of Hydraulic service. Such advice also covers those new the feasibility of providing a drinking water Works (DOH). systems that arise during the effectiveness supply, participating in coordination of this agreement. meetings with the DOH and issuing Esval signed an agreement with the DOH reports. as of May 2009, whose aim is to provide • Project Management: consists of technical assistance to the rural drinking water developing the pre-investment and As of December 2009, Esval provided technical committees and cooperatives and manage investment stages of the studies and works advice to a set of 147 APR systems, which the investment projects that have state of the rural drinking water program in the benefit an estimated population of 150,534 financing for this program. The following is a region. For this, the studies are tendered, inhabitants24. breakdown of the scope of activities: the tender award is proposed, hiring and
24SISS management report 2009. Esval Sustainability Report 2009 59 03 Customer Relations
03.4 PRODUCT/SERVICE QUALITY workplace. Two high value instruments, the operation and from the final product. In the atomic absorption spectrophotometer and a case of wastewater treatment, for example, AND SAFETY gas chromatograph, were recently renewed. this is measured based on the water quality They detect metal levels and organic products, of the receiver medium (rivers, brooks or the To maintain the current service quality and respectively. sea). continuity, there is a quality control system with technology applied to each of the b. Process Control Samples to measure process efficiency are processes. obtained from: a. Laboratory Processes are controlled by means of samples that are taken at different stages of the Esval has a renowned national laboratory, which makes approximately 150,000 analyses a year, mainly bacteriological, physical and chemical analyses, from samples taken from the whole region.
The laboratory has competent personnel and state-of-the-art equipment to control the composition of the drinking water supplied and monitor correct wastewater treatment and disposal and the quality of the natural water bodies that receive it.
The laboratory works with a quality assurance system certified by the National Standards Bureau (INN), according to the criteria laid down by the SISS. Moreover, it has been certified by the INN pursuant to the NCh ISO 17.025 standard as of 2004, which regulates the operation of national and international test laboratories.
Esval’s laboratory has a total surface area of 915 m2, distributed on two floors containing the biological and chemical areas, with a total of 25 examination and analysis rooms. The large size of this building ranks it as one of the top laboratories in Chile to allow for a better
60 • Drinking water networks, to verify that • Drinking water plants (PTAP), to control • Marine outfalls and seawater, to verify the quality of the water received in and assess the purification process that these systems do not generate fecal households is compliant with the current undertaken during the production process. contamination of the coastline, mainly on regulation. the beaches of the entire coastline in the region from Llolleo to Papudo. TYPE OF ANALYSIS ANNUAL Nº TYPE OF ANALYSIS ANNUAL Nº
DRINKING WATER NETWORK 53,024 PDAS BACTERIOLOGICAL ANALYSES 1,4881.008 BACTERIOLOGY TYPE OF ANALYSIS ANNUAL Nº DRINKING WATER NETWORK 16.584 26,512 PDAS CHEMICAL ANALYSES 11,328 MARINE OUTFALL & COASTLINE 2,676 TURBIDITY 17.592 BACTERIOLOGICAL ANALYSES DRINKING WATER NETWORK 33,360 TOTAL PDAS ANALYSES 12,816 CHEMICAL ANALYSES MARINE OUTFALL & COASTLINE 5,526 CHEMICAL ANALYSES TOTAL DRINKING WATER ANALYSES 112,896 TOTAL MARINE OUTFALL ANALYSES 8,202 • Wastewater treatment plants (PDAS), where checks are made that discharges of waste into surface water courses meet the requirements laid down for these systems. • Liquid industrial waste (RILES) discharged into Esval’s collectors, to assure they TYPE OF ANALYSIS ANNUAL Nº comply with Supreme Decree 609 and allow for the suitable operation of collectors PDAS BACTERIOLOGICAL ANALYSES 1,488 and wastewater treatment plants.
PDAS CHEMICAL ANALYSES 11,328
TOTAL PDAS ANALYSES 12,816
TYPE OF ANALYSIS ANNUAL Nº
CHEMICAL ANALYSIS OF RILES 1,128
TOTAL ANALYSES 1,128
Esval Sustainability Report 2009 61 03 Customer Relations
All these analyses are part of the following 12. Direct control program of discharges • Data logger equipment programming and approximately 15 control programs of of liquid and solid industrial waste (RILES) installation on macro meters to measure different periodicity, which are controlled by at industries that discharge into our sewer the flow. bodies like the SISS, the Health Ministry and system. the General Directorate of Maritime Territory • Data logger equipment programming and 13. Control program of solid waste of and Merchant Navy (DIRECTEMAR), among installation in the drinking water network wastewater treatment plants. others. to measure the pressure. 14. Physical and chemical follow-up programs 1. Bacteriological control program and of production systems. • Installation of portable electronic equipment drinking water network disinfection. and Doppler flow meters in wastewater 15. Raw material quality control program. 2. Bacteriological control program of surface piping. These are used to contrast fixed water and groundwater sources (pursuant pressure main pump flow meters. to the Nch 409 standard and SISS). c. Technology • Metal detector to detect metal sewer drain 3. Chemical control program of drinking covers and valve rings underground. water networks. The operating work of all the company’s 4. Chemical control program of surface processes is supported by new technologies • Television inspection to review and water and groundwater sources. that have been incorporated to the processes, diagnose the inside condition of collectors 5. Bacteriological control program of like: and household connections. distribution tanks. • Portable meter to assess the flow of • State-of-the-art atomic absorption 6. Fluoridation control program of drinking spectrophotometer for multi-parameter water networks. wastewater in sewer drains, and it is also useful for open wastewater channels and measurement and automatically-controlled 7. Fluoridation control program of production unprocessed water courses. gas chromatograph added to Esval’s subsystems. laboratory. 8. Bacteriological control program of • Noise loggers, which indicate what wastewater treatment systems. stretches of the drinking water network • Pilot ozone testing at the Peñuelas plant to eliminate the organic parameters. 9. Chemical control program of wastewater have leakages. treatment systems. • Metal piping finder to locate all the 10. Bacteriological control program of underground piping and identify the laying seawater - effluents, beaches, marine of other services (electricity, telephony, gas, environment (PVA) - of the areas where etc.), preventing unnecessary road surface collectors that discharge into water bodies breakage. operate. 11. Chemical control program of seawater – • Acoustic correlator to detect where there effluents, beaches, marine environment. are drinking water network leakages.
62 03.5 SUPPLIER RELATIONS for their transport and unloading. Such ISO 9001, ISO 14001 and/or OSHAS 18001 guidelines control correct product labeling certification. In addition, such suppliers are and handling and suitable information on subject to a monthly assessment process, Esval’s relationship with its suppliers is handled their composition to be able to act efficiently which considers criteria like meeting directly by the finance and administration in any emergency. deliveries, product quality and after-sales management through the contracts area service. and procurement department. Compliance with these guidelines is controlled by Esval’s personnel by means of For the rest of the goods or services purchased The Company has not laid down policies or a Verification of Environmental Aspects log by the Company, suppliers are only selected guidelines explicitly establishing Esval’s form at the time of transporting and unloading based on technical and financial assessments, of relationship and the way of working with these kinds of products. on economic advantage and/or the delivery its suppliers. Nevertheless, all critical product conditions of the good or service. suppliers from the environmental standpoint Suppliers of critical goods are recorded and shall be governed by the guidelines in force classified according to whether they have 90% of the Company’s suppliers were Chilean in 2009, and purchases from foreign suppliers were only made in specific cases. Nevertheless, there is no explicit guideline giving priority to purchases from Chilean companies.
Esval Sustainability Report 2009 63 04
04.1 OUR EMPLOYEES
Esval strives so that for its employee relations each person in the organization can attain high professional development in an environment of wellbeing and safety. All the organization’s managements are accountable for achieving this transversal aim of the company and the programs related to this area, including compliance with labor legislation and respect for human rights. This work is led and coordinated by the human resources management.
In 2009, this management focused on improving the organizational environment, which included implementing a formal system to measure the internal climate. A qualitative and quantitative assessment methodology was designed for this, and different plans were also drawn up to boost the internal communication of each area. Complementing
64 Employee Relations
this, “human resources workshops” were a horizontal-type organizational structure. conduct required by Esval. The Company’s held for all Company staff and they will be It considers the description, analysis and main recruitment source is its own staff, outlined below. assessment of job positions, performance enabling the growth and professional evaluations and remunerations. development of those who are already part The highlight of this area’s management of the organization. • Training and Development: related to was securing certification pursuant to the the competencies of employees and their OHSAS 18001:2007 international standard personal and professional development. in February, which distinguishes Esval as a company that is concerned about the safety • Health and Wellbeing: focused on and health of all the work of its employees. improving the quality of life of employees and their families. The human resources policy includes a series of commitments to develop good practice in • Quality: aimed at the job position structure, employee and collaborator relations: service quality and supplier relations.
• Incorporation and Provision: related to Esval undertakes detailed selection processes the processes of induction, staff selection to hire its employees, as it deems this is the and encouraging the internal hiring of best way of guaranteeing fair opportunities staff. to people and work teams. Formal procedures have been established for the recruitment and • Payment and Organization: its focus is selection of new employees and induction to pay salaries and incentives and maintain processes related to values, regulations and
Esval Sustainability Report 2009 65 04 Employee Relations
04.2 GENERATING QUALITY Employee Breakdown by Level EMPLOYMENT
Esval’s workforce amounted to 360 employees for the year ended December Levels 2007 2008 2009 31, 2009, 1.97% down on that in 2008. This decrease was mostly due to employees Administrative 27 26 25 retiring in the operations area and to the Executive existence of some vacancies at the end of 8 8 8 the year. The average age of employees was 35 42 45.73 years. Middle Management 33
Workers 77 79 71 Esval generated approximately 1,334 indirect jobs (more than three million man- Professionals 120 125 118 hours) by hiring services, which was a 6.7% increase on 2008. This was mainly due to Technicians 111 96 96 greater coverage of some services. Total 378 367 360
Employee Breakdown by Organizational Level
Employee Percentage by 2007 2008 2009 Organizational Level
Senior managers and executives 2% 2% 2%
Professionals and technicians 70% 69% 71%
Administrative and Workers 28% 29% 27%
66 Job Positions Filled By Men & Women 98% of the Company’s total workforce has an (2007-2009) indefinite contract. It should be highlighted that Esval offers formal and attractive working conditions that are in keeping with 100% the labor market, aimed at allowing for the 15% 17% 16% permanence and development of the potential 90% Men of each person. Employees have payment, compensation and incentive schemes in 80% Women keeping with the market that generate 70% stability. These incentives contribute towards staff achieving the Company’s objectives and 60% adopting appropriate conduct that improves 85% 83% 84% 50% operations.
40%
30% Employee Percentage
20%
10%
0%
2007 2008 2009 Years
Total Company Workforce by Type of Contract
TYPE OF CONTRACT 2007 2008 2009
INDEFINITE 376 360 356
FIXED-TERM 2 7 4
Total 378 367 360
Esval Sustainability Report 2009 67 04 Employee Relations
Initial Company versus Minimum Legal Wage Ratio
YEAR ESVAL MINIMUM WAGE LEGAL MINIMUM WAGE VARIATION OR RATIO
2007 331,274 144,000 130%
2008 372,319 159,000 134%
2009 410,195 165,000 149%
The average of the total annual taxable amount paid was considered to calculate them.
Benefits for All Employees: • Half-yearly salary readjustment according to • Sports, recreation and culture: the Consumer Price Index (CPI). Encouragement to play sports, holding of • Payment of nurseries and day-care centers internal competitions, participation in • Health: Preventive health checkup for children of up to 4 years old. inter-company tournaments and recreational and advice on collective health workshops. • Salary complement due to medical insurance company (ISAPRE) plans. certificate. • Agreements: Coverage of hospital, medical • Leave of absence without pay. • Social service: Professional service and dental care, agreements with sports concerning health, housing, the family, establishments, gymnasiums and opticians. education, etc. • Social security and prevention: Ongoing advice on retirement due to age and disability • Allowances: and choice of voluntary social security • Severance payment with no legal limits25. saving.
25 68 This is a benefit for unionized workers and a percentage of non-unionized workers depending on years of service. 04.3 TRAINING, DEVELOPMENT classroom training workshops to reduce the AND EMPLOYABILITY levels of stress and improve their health and quality of life. For Esval, further development courses are a significant way of developing The development of people in the Company people as they drive new abilities and skills is aimed at suitable management of that consolidate their employability and knowledge, performance excellence promote a service spirit. and the ability to interact. To attain this, organizational environments are created A major highlight is the holding of the annual that promote the development of technical, day event for all Company personnel called professional, work and personal aspects. human resources workshops, which this year Esval thereby seeks to drive teamwork, was focused on two core elements for the develop participative systems and above all Company: a “pleasant environment” and encourage creativity and participation in “innovation.” the continuous improvement of the entire organization. This is part of the so-called 185 courses and seminars were held in 2009, human development project. which covered all the Company’s employees. The 17,272 hours of training given were E-learning was added to the traditional equivalent to an average of 47.4 hours per learning methodologies in 2009. employee a year, which means that training Complementing this, it has been made easier accounted for around 2.2% of collaborators’ for employees to participate in different working day.
Esval Sustainability Report 2009 69 04 Employee Relations
2008 2009 TRAINING AREA26 Hours % Hours %
Integrated Management System (SIG) 1,611 10.09%
SIG Environment 33 0.21% 1,467 8.49%
SIG Quality 443 2.77%
SIG Occupational Safety & Health 3,781 23.68% 2,156 12.48%
Update 3,706 21.46% 8,983 56.26% Professional Development 4,298 24.88%
Personal Development 1,117 7.00% 5,645 32.68%
TOTAL 15,968 100.00% 17,272 100.00%
It should be highlighted that the training leftover from 2008 was used to hold four social scholarship courses sponsored by Esval and given by the Intermediate Technical Training Body (OTIC) of the Chilean Chamber of Construction. Such courses were: plumbing and sanitary installations, laminated flooring, cake-making and pastry- making. These courses benefitted a total of 100 unemployed people or with incomes equivalent to the minimum wage.
26 70 The training area categories were changed in late 2008, and the data was adapted to make the best possible comparison of 2008 and 2009. OCCUPATIONAL HEALTH • The occupational health and safety • Training on breathing and hearing protection, 04.4 management system was compiled. “safe breathing” campaign. AND SAFETY • Procedures, documents and guidelines, • Pre-occupational exams. Regarding occupational health and safety, an among others, were aligned with the ISO occupational health and safety management 14001 and 9001 standards. Contactors must also adhere to Esval’s system (SST) was implemented so the safety standards, and guidelines in line with organization can control its risks and improve • Training of plant personnel and contractors. the OHSAS standards are added to service performance. The key objective is to eliminate contracts. There is also ongoing training or minimize risks to employees and other • Intranet implementation of the daily question and assessment of compliance with safety interested parties who might be exposed to form on the standard for all the personnel in standards. A company controls labor, quality work-related hazards. the organization. and safety issues and is constantly auditing the good execution of contracts in these The following are the current programs to Health Action areas. achieve this, among others: • Pause gymnastics. Implementation of OHSAS 18001 • Comprehensive health workshop on Pilates - Yoga. • A hazard identification matrix was made, the risks were assessed and controls set up. • Sports and recreation for a healthy life.
Exclusive Risk Prevention Training (Man-Hours)
ontrato 2007 2008 2009
ESVAL S.A. 2,181 3,719 2,156
CONTRACTORS 15,493 19,263 11,558
TOTAL 17,674 22,982 13,714
Esval Sustainability Report 2009 71 04 Employee Relations
Esval’s Lost-Time Accident and Accident Rate 04.5 LABOR RELATIONS (2007-2009) The Company’s union relations are characterized ontrato 2007 2008 2009 by an environment of cooperation and respect LOST-TIME ACCIDENT RATE* 26.32% 18.70% 57.00%*** between the parties, and periodic work meetings are held throughout the year as part ACCIDENT RATE** 2.9% 2.4% 2.2% of the Labor Relations Commission, which reflects the value employees hold of labor *Lost-time accident rate (total): average lost-time accident rate due to temporary conditions at Esval. disability + lost-time accident rate due to disability and death (pursuant to Supreme Decree 67). There were two collective bargaining processes **Accident rate: number of work accidents/average workers divided by 100 in in 2009, involving three Company unions. These 12 months. were completed before the legal deadlines ***This is under appeal in the Superintendency of Health Services. with the signing of two collective contracts that were satisfactory for the parties. They Parity Committees will be effective September 1, 2009 through August 31, 2011, both dates inclusive. Esval has four parity committees: Southern Coastline Committee, Central Level Committee, Quillota-San Felipe/Los Andes Committee and the Valparaíso Operations Committee. Level of Unionization The essential actions of these committees 2008-2009 include monthly and extraordinary meetings, 2008 2009 and specific work schedule activities like planned inspections, remarks on behavior, UNION Nº1 132 125 investigation of incidents, studies and design UNION Nº2 40 51 of products for prevention campaigns. PROFESSIONALS & DEPARTMENT HEAD UNION 39 38 The activities of the four hygiene and safety UNIONIZED TOTAL 211 214 parity committees in 2009 were focused on boosting and supporting the risk prevention UNIONIZED % 58% 59% management in implementing the OHSAS NON-UNIONIZED 156 146 18001 standard.
72 04.6 CONTRACTORS always expressly governed by a civil contract. For these effects and purposes, Esval has a Esval considers its contractor relations to be contract management system, whose aim is part of its ethical and transparency principles. to guarantee the good operation of this work This means providing permanent, clear, and system and safeguard compliance with labor timely information on issues like tender and safety laws, among other significant processes, requirements, compliance and aspects. The following are some elements of performance evaluations. this system that should be highlighted:
The company’s commitment to contractors • The contracts assistant management, • The Company supports different is clearly embodied in Esval’s Quality, which reports to the finance and training and updating programs for Environment, Occupational Safety and Health administration management, lays down contractor companies, irrespective Policy. Among other issues, this sets forth the the regulations, and plans, organizes, of the responsibility of each contractor need of: executes and controls the drawing up of company for training its own workers. such contracts in ongoing coordination27 “Gradually committing its contractors and with different areas and managements. • To comply with Esval’s occupational health suppliers so their quality, environmental, and safety standards, contractors shall occupational health and safety performance is • The tender bases have been standardized adhere to the Special Regulation for commensurate with the guidelines of this policy according to categories or modalities. Contractor and Subcontractor Companies, in regard to the activities and services they which commits them to being more self- provide to the organization.” • There is internal contract control with the demanding on these issues and to complying presence of the operating coordinator27, with current legislation. Esval deems contractors to be all those who belongs to the management receiving companies that provide services related to the service. He is in charge of establishing Esval had contractual relations with 53 processes or specialized tasks that are a part its quality controls and safeguarding suitable contractor companies in 2009, through which of the service chain of this water utility. The compliance with the contractual bases. it generated 1,334 indirect jobs. Company hires these services provided they contribute to the efficiency of the operation • A specialized company undertakes and can be strictly measured according to systematic audits of contractor compliance quality standards. with labor legislation and safety regulations, which are independent of other controls For greater clarity, the terms of the services Esval undertakes on these issues and and requirements between the parties are regarding quality.
27Professional who acts as counterpart representing the principal. Esval Sustainability Report 2009 73 05
05.1 COMMUNITY
Community relations are a key factor for Esval because of the vital importance and impact of the sanitary service on the quality of life of people, their health, wellbeing, and therefore on the economic development and environmental sustainability of the Valparaíso Region.
Its objective in this relationship is to forge open, fluent and harmonious relations. General management is responsible for meeting this aim, with the collaboration of the corporate management area, commercial management and operations management.
Work in 2009 was focused on disseminating the benefits of cleaning up beaches and rivers so the significance of Esval’s contribution to people’s quality of life is valued.
The key message of the annual campaign was “Taking care of water depends on you
74 Community Relations in the Region
and me,” and the aim was to awareness that • VI CONICYT Explora School Congress of • Inter-school environment tournament in taking care of the environment is the shared Sciences and Technologies, organized by San Antonio, organized by the environmental responsibility of the Company and community the Pontifical Catholic University of department of the Municipality of San as a whole. Valparaíso jointly with the CONICYT Explora Antonio. program, held in Valparaíso. As in previous years, in 2009 Esval supported The main efforts were focused on school • National environmental certification and participated in various recreation, health education, and in 2009 extending the healthy system of schools in Quillota, organized by and cultural activities throughout the region. life concept pursued in 2008 to transmit the the Municipality of Quillota jointly with the message of taking care of the planet. CONAMA. The campaign to bolster community awareness about the importance of taking Partnerships were also entered into with • First regional environmental education care of the environment, natural water the public sector with this same objective. meeting of biodiversity experiences on sources and the sea is expected to continue Esval signed a collaboration agreement diversification and climate change, and increase in 2010. This is understood as in June with the National Environmental organized by the Laguna Verde Corporation a shared responsibility which is why we get Agency (CONAMA) of the Valparaíso Region, and sponsored by the CONAMA of the actively involved in it. Valparaíso Region, Environmental Protection whose aim was to drive favorable habits in Fund, CONICYT Explora, PNUD-VE joint preserving the natural environment by means program to fight desertification. It was held of municipal and community activities, and in the city of Valparaíso. health shows. • Seminar on methodologies for environmental The Company also participated in various education in schools, organized by the activities to promote the care of the department of culture of the Municipality environment, highlighting the following: of San Antonio.
Esval Sustainability Report 2009 75 05 Community Relations in the Region
Healthy Water, Healthy Life Campaign
The “Healthy Water, Healthy Life” campaign was launched in 2002 to get Esval and its operations closer to the community and act as a bridge of assistance for the neediest. It is currently striving to transmit messages on taking care of the planet, water and its importance in life.
As reported in the 2008 report, Esval carried out various activities in 2009 as part of this campaign, including the following:
1. Playful educational presentation in schools, day-care centers and centers for the elderly.
2. Activities in centers for children whose mothers are seasonal workers.
3. Educational workshops.
4. “Door-to-door” activities.
5. Participation in public events related to the community.
6. Health programs.
76 1 Playful Educational of this children’s painting competition, 3 Educational Workshops Presentation organized by the Municipal Corporation of Valparaíso, with an invitation to all Esval holds educational workshops, especially By means of a short play with music and municipal schools. aimed at the social organizations in the motivating elements for children, Esval made region. “Use and importance of water for presentations in municipal, subsidized and life,” “Care of hydrants,” “100% clean- some private schools, aimed at transmitting • Christmas Competition: As is tradition, up of the Valparaíso Region” and “Care of a message of taking care of the environment primary education children at schools sewerage systems” were the main topics around us, the planet and water. that received the Healthy Water, Healthy addressed in 2009. Life campaign participated in a children’s painting competition organized by Esval. EDUCATION TOTAL This time the topic of the competition was 4 Door-To-Door Activities “Taking Care of the Environment YEAR TOTAL CONTACTS with Esval’s Water Drops.” The Door-to-door activities are used to inform winning paintings in the competition 2009 43,618 customers and the community beforehand were used on Christmas cards that Esval about the benefits and impacts of different 2008 79,409 sent out to greet the community. works the Company undertakes. This 2007 96,296 personalized contact, which also includes meetings with the respective neighbors’ Activities at day-care centers committees and communal associations, 2 allows neighbors to find out about the main There was a drop in the number of contacts for children whose mothers developments being carried in their sector, with schools in 2009 for two main reasons. are seasonal workers and to get answers to their queries. Firstly, the Company made the decision to increase community contact by holding For the fourth year running, Esval participated In 2009, the campaign teams personally more educational workshops with social in centers, which the National Department informed of situations like: scheduled drinking organizations, such as mothers’ centers, for Women (SERNAM) opens every summer water cuts, sanitary network enhancement the elderly and neighbors’ committees. The to look after the children of mothers who works, construction of drinking water tanks, second reason was due to fewer activities in are seasonal workers, by making recreational renewal of mains, and connection to new municipal schools on account of a series of and educational visits. services, among others. strikes in the year. This educational work, coordinated with the Esval also promoted activities to further directors of the community development DOOR-TO-DOOR ACTIVITIES 2007-2009 artistic creativity in schools: departments of the various municipalities in the region, also helped children learn more 2007 2008 2009 • Come to Valparaíso Competition: The about taking care of the environment and Company was one of the main sponsors the relevance of water in preserving it. 9,858 9,960 4,752
Esval Sustainability Report 2009 77 05 Community Relations in the Region
A new strategy was implemented in 2009 to 6 Health Programs boost communication in areas where large mains renewal work needs to be undertaken. Another activity of the campaign was Contact was made in such areas before, attending numerous shows, where training during and after the construction of works, was given on health issues, with the which involved the same person being visited education and nutrition departments of the three times but this was only recorded as one walk-in clinics in the region. The messages contact, and the number of door-to-door transmitted were related to hygiene, healthy visits therefore dropped in the period. eating and information on the clean-up of beaches.
5 Public Events
Most of the campaign activities require Summary of Site Activities in the ongoing coordination with the regional and Valparaíso Region provincial government, municipal authorities 2007-2009 and other services, which channel efforts into the most important needs in the region. The various public activities in 2009 with Esval’s YEAR OFFICES EDUCATION AREA COMMUNITY TOTAL participation included: CONTACTS 2009 20,170 43,618 112,653 176,441 • Support of winter schools, driven by the 2008 22,005 79,409 94,304 195,718 regional government to train social leaders. 2007 28,101 96,296 68,879 193,276
• Collaboration with governors’ offices on the The drop in site activities in 2009 is mainly “Gobierno Más Cerca” (Closer Government) explained by fewer door-to-door contacts program. and activities with schools, as explained above. Nevertheless, there was an increase in • Coordination with the Regional Ministerial the number of activities with the community, Secretary of Education to bolster the which enhanced the information on customer educational emphasis of the campaign insight, complaints and opinions.
78 GOVERNMENT PROGRAM/ TYPE OF SUPPORT/ LEVEL BODY PROJECT ESVAL’S PARTICIPATION
“HIGH-RISK SECTORS” INTENDENCY GOVERNMENT TECHNICAL SUPPORT PROGRAM
CLOSER GOVERNMENT PROGRAM: ITS OBJECTIVE WAS TO INFORM, DISSEMINATE AND Regional COMMUNICATE THE PARTICIPATION IN VARIOUS GOVERNOR’S OFFICE REGIONAL GOVERNMENT’S PUBLIC OFFERING ACTIVITIES TO THE COMMUNITY, INCLUDING PROJECTS AND PROGRAMS OF PUBLIC SERVICES AT REGIONAL LEVEL
CLEAN HANDS CAMPAIGN: THE OBJECTIVE WAS TO SUPPORT THROUGH THE HEALTHY REGIONAL MINISTERIAL PREVENT AN OUTBREAK WATER, HEALTHY LIFE TEAM AND SECRETARY OF HEALTH OF INFECTO-CONTAGIOUS CAMPAIGN DISEASES 05.2 PUBLIC-PRIVATE PROGRAMS REGIONAL MINISTERIAL ENVIRONMENTAL SUPPORT OF THE VARIOUS TO SUPPORT REGIONAL sECRETARY OF EDUCATION ACTIVITIES ACTIVITIES UNDERTAKEN DEVELOPMENT NATIONAL “TAKING CARE OF WATER COLLABORATION AGREEMENT TO As stated in the Company’s mission, the ENVIRONMENTAL DEPENDS ON YOU AND DRIVE GOOD HABITS ON AGENCY, VALPARAÍSO ME” CAMPAIGN PRESERVING THE NATURAL development of its business must make a REGION ENVIRONMENT contribution to the community regarding health, quality of life, conservation of the environment and regional development. Regarding this, Esval participates in and WORKING ROUNDTABLES FOCUS ON EXCHANGING IDEAS supports the implementation of numerous (COMPRISING ESVAL, THE AND EXPERIENCES TO IMPROVE COMMUNICATION AND MAKE TERRITORIAL TERRITORIAL DELEGATES public projects benefiting the region’s PROGRESS WITH RESOLVING THE Municipal DELEGATES OF THE OF THE MUNICIPALITIES CONCERNS AND/OR PROBLEMS OF development, as outlined below. MUNICIPALITIES AND COMMUNITY REPRESENTATIVES) COMMUNITY REPRESENTATIVES (MAINLY COMMUNAL ASSOCIATION LEADERS)
Esval Sustainability Report 2009 79 06
All the managements are accountable for meeting Esval’s economic performance objectives. The finance and administration management is in charge of appraising the degree of compliance of each area and giving them periodical information about their work.
Esval’s net earnings amounted to CLP83.256 billion in 2009, 4.7% up on earnings of CLP79.358 billion in 2008. Net income was CLP22.477 billion, 11.8% up on the CLP19.819 billion of the previous year.
Income was driven by a 3.9% increase in operating income from CLP27.921 billion in 2008 to CLP29.054 billion in 2009, largely due to increased operating earnings on account of a higher average tariff compared with 2008. A further contributing factor was the 65.9% drop in income tax from an expense of CLP4.480 billion in 2008 to CLP$2.701 billion in 2009, due to lower deferred tax.
80 Contribution to Regional Economic Development
2009 Investments INVESTMENTS (expressed in millions of Chilean pesos) 2009 2008 2007
In 2009, Esval continued to expand the DRINKING WATER PRODUCTION & DISTRIBUTION 9,866 13,269 16,138 drinking water supply and also to maintain assets and renew networks. WASTEWATER COLLECTION 3,152 3,324 2,201 Esval’s total investment amounted to CLP16.454 billion in 2009. WASTEWATER TREATMENT 1,337 774 1,334
OTHER INVESTMENTS 2,099 3,181 2,556
TOTAL INVESTMENTS 16,454 20,548 22,229
Esval Sustainability Report 2009 81 06 Contribution to Regional Economic Development
PROJECTS ThCLP$556,241 to provide the community committed with the authorities, work with a top class service. was done in virtually all the districts of the concession area in 2009, at an investment Conveyance of Drinking Water to Moreover, the towns of Horcón and Chocota of ThCLP$5,307,784, to modernize 50,000 the Northern Coastline solved their water supply quality and regularity meters of network. Moreover, the construction problems due to interconnection to these works. of 12,000 meters was brought forward, at an Due to the need of continuing to support the investment of ThCLP1,581,560. development and growth of the Valparaíso Tank on the La Isla Housing Region, in 2009 new communities on the Estate in Valparaíso 40,000 meters were renewed in the districts of northern coastline benefited from the Greater Valparaíso, where almost 70% of the investment made 2003 through 2008 with population lives. 7,400 meters were renewed Regarding this, a 300-cubic meter semi- in the province of Quillota, 9,600 meters in the the conveyance of drinking water from the buried tank was built to resolve the water production plant on the Aconcagua river, provinces of San Felipe and Los Andes, and supply problems of the La Isla housing estate 5,000 meters in the province of San Antonio. district of Concón, to the district of Zapallar. in Valparaíso. These works have already been completed and the project had a cost Treatment Plant Construction The La Laguna-Cachagua conveyance stretch of ThCLP$238,026, which included a 732- was built in 2009, which boosted the water meter adduction, the design, construction, and Expansion supply to the towns of Cachagua and Zapallar, inspection and others. It will benefit 3,500 adding the real estate subdivisions and projects people. The Company is ready to assume the increase present in the sector. ThCLP$1,226,984 was in demand for its different services and as invested in these works with the installation such in September started to expand the of 5,186 meters of piping. Network Renewal wastewater treatment plant in Cachagua. CLP792 million have been invested in this Likewise, a 200-cubic meter semi-buried Once the large works had been completed, project to undertake the civil works, provide tank was built in the city of Puchuncaví and the Company renewed networks. In equipment, hydraulic interconnection and 6,296 meters of piping at an investment of accordance with the development plan sheds.
82 06.1 ECONOMIC VALUE GENERATION
The economic value generated by Esval in 2009 amounted to CLP87.350 billion and the economic value distributed was CLP88.665 billion, which was a CLP1.315 billion drop in economic value generation, mainly due to higher operating costs.
This was a 66.5% improvement on the -CLP3.923 billion in 2008. This was mainly explained by a lower return to shareholders on account of lower net income in 2008 (the final dividend was decided in 2009).
Regarding the economic value distributed, it can be seen that the Company’s operations generated value for its goods and services suppliers, its contractors, employees, shareholders, financial creditors, the community and treasury.
Esval Sustainability Report 2009 83 06 Contribution to Regional Economic Development
Economic Value Generated & Distributed 2007-200928
ECONOMIC VALUE GENERATED (1) 2009 2008 2007
EARNINGS (2) 87,350.419 83,636,694 84,316,472
LESS ECONOMIC VALUE DISTRIBUTED
OPERATING COSTS 45,899,226 43,488,008 39,434,143
PURCHASE OF GOODS 11,149,645 10,921,062 7,524,101
PAYMENT OF SERVICES HIRED 19,561,456 18,171,830 17,429,338
OTHER OPERATING COSTS 15,188,125 14,395,115 14,480,705
EMPLOYEE SALARIES 7,557,204 7,277,752 7,232,246
PAYMENT TO CAPITAL SUPPLIERS 33,553,240 35,978,987 30,021,410
DIVIDENDS 20,153,306 23,192,046 17,281,278
DEBT INTEREST 13,399,934 12,786,942 12,740,132
PAYMENTS TO THE TREASURY (3) 1,443,592 660,421 1,292,866
INVESTMENT IN THE COMMUNITY (4) 211,844 154,035 110,971
ECONOMIC VALUE WITHHELD -1,314,687 -3,922,509 6,224,836
(1) Drawn up on an accrued basis. (2) Include operating earnings, financial income and other non-operating earnings. (3) Include 1st category income tax, tax on rejected expenses, commercial licenses, land tax, stamp duties and others. Exclude deferred taxes (4) Include donations and the Healthy Water campaign expenses, stated in the item Corporate Image. 84 28All the values are stated in millions of Chilean pesos as of December 2009, and the economic value generated figures were drawn up according to generally accepted accounting principles. Economic Value Withheld
Community Investment
Operating Costs Economic Value Distributed 2007-2009 Employee Salaries Dividends
110% Debt Interest Payments to the Treasury 100%
90%
80% 52.0% 46.8% 06.2 A REGULATED BUSINESS 52.5% 70% Chilean legislation lays down that water utilities “that act in a natural monopoly” shall 60% be subject to the supervision and regulation 1.5% 0.8% of the Superintendency of Sanitary Services 50% 1.7% (SISS). This is a functionally decentralized legal entity with its own equity, which is 20.5% 27.7% 40% subject to the supervision of the President of 23.1% 0.1% the Republic through the Ministry of Public 30% Works. Its function is to guarantee that these 15.1% 0.2% 0.2% services are provided to the population in the 20% quantity, quality and at the price offered, with 15.3% 15.3% continuity in the long term. It must also verify 8.6% 10% that wastewater is treated and disposed of in 7.4% 8.7% 8.7% keeping with sustainable development. 0% -4.7% -1.5% Esval and other water utilities are also subject to -10% the provisions of various laws and regulations, and the main ones are as follows: 2007 2008 2009
Esval Sustainability Report 2009 85 06 Contribution to Regional Economic Development
Tariff system in the water utility sector
The most economical solution a community ENACTMENT DECREE/LAW DOCUMENT can have for the provision of its sanitary DATE service is for this to be provided exclusively by one company, as it would not be efficient D.F.L.29 MOP30 Nº382 General Sanitary Services Law (updated at July 2005) 1988 for there to be piping networks of various D.S31 MOP Nº1199 Regulation of the General Sanitary Services Law 2004 companies installed in the streets, as is the case for other public services like telephony. D.F.L. MOP Nº70 Law on Sanitary Service Tariffs 1988 Hence, an efficient sanitary service for a community is a monopolistic service. D.S. MOP Nº214 Regulation of article 67 of D.F.L. MOP Nº382/88 2005
D.S. MINECON32 Nº453 Regulation of the Law on Sanitary Service Tariffs 1989 To ensure that water utilities, due to their monopolistic nature, do not establish their D.S. MINECON Nº385 Regulation on the Designation and Operation of Expert 2000 prices unilaterally and thereby avoid undue Commissions tariffs and charges to customers, the State D.S. MOP Nº1305 Regulation on Share Expropriation 2001 has laid down a series of laws and regulations defining how such tariffs should be calculated Law Nº18.902 Law Establishing the Superintendency of Sanitary 1989 and established, and core legislation is the Services Law on Sanitary Service Tariffs (Statutory Law Nº19.821 Modifies Law Nº18.902 and repeals Law Nº3.133 2002 Decree Nº70, Ministry of Public Works of 1998) and its Regulation (Supreme Decree Law Nº18.778 Subsidy Law on the payment of drinking water con- 1989 Nº453, Ministry of Economy of 1990). sumption and sewerage services
D.S. Nº195 Treasury Regulation of the Subsidy Law 1998 Pursuant to these laws, tariffs are calculated every five years by means of a process D.S. MOP Nº50 RIDAA – Approves the Regulation on Domestic Drinking 2002 undertaken by the SISS and in which the Water and Sewers water utility participates. These tariffs are calculated based on a “model” water utility,
29Statutory Decree 30Ministry of Public Works 31Supreme Decree 32Ministry of Economy 86 which provides sanitary services according to calculation. At the same time, the water series of “other charges” related to providing the real conditions of the locality but whose utility makes its own tariff calculation study. the sanitary service, including the following: infrastructure is designed optimally. The Five months before the end of the tariff service suspension and reconnection charge optimal operating and maintenance expenses period, the SISS and water utility exchange for not paying the bill, meter verification based on this infrastructure model are also their studies. If the water utility does not charge, hydrant maintenance charge, charge considered. It similarly considers the other agree with the results of the SISS study, it can for the direct control of liquid industrial waste, expenses of this model company, like the raise discrepancies of each point it disagrees and a project review charge. commercial and administrative costs needed with in a detailed and accurate way. The SISS for its operation. shall have a legal 15-day term to review the The tariff decree also includes the formulae discrepancies with the water utility and reach for updating the tariffs according to the This means that any possible inefficiency of a tariff agreement. If this occurs, this leads to Consumer Price Index (CPI) variation and two the real company is eliminated so that the the end of the process and the publication of other price indexes to compensate for the costs and expenses included in a tariff are the new tariffs. higher costs of the water utility in providing only the minimal and efficiently necessary to the service. provide the service and not transfer higher Should no agreement be reached, the costs to customers due to the inefficiencies of discrepancies shall be resolved by a commission The tariff review processes were completed for the real company. of three experts, with one designated by 23 concessionaires in 2009, including Esval. the SISS, another by the water utility and a The agreement reached led to maintaining In accordance with law, the tariff process third party, designated by the SISS based on the tariffs for the 2010-2015 period in the starts one year before the tariff term expires. a list agreed on beforehand with the water Valparaíso Region. The process commences when the SISS utility. The verdicts of this commission shall publishes the preliminary bases of the study, determine the final tariffs and there shall be which set forth the methodologies, criteria no appeal. and standards for calculating tariffs. It also defines the information it will require from Lastly, the final tariffs are published in the the company to make its calculations. After Official Gazette by means of a Decree of a process of the water utility reviewing and the Ministry of Economy, Production and making remarks about the preliminary bases, Tourism, containing the following tariff the SISS publishes the final bases and one charges: variable charges for drinking water month later the water utility must provide consumed, variables charges for wastewater all the data for tariff calculation. With collected and treated, and the standing this information, the SISS makes its tariff charge per customer. It also establishes a
Esval Sustainability Report 2009 87 07
88 2009 Commitments and 2010 Challenges
AREA 2009 TARGET 2009 PERFORMANCE 2010 TARGET
ENVIRONMENT
WASTEWATER DISCHARGES INTO NO WASTEWATER NO WASTEWATER DISCHARGES WATER BODIES DUE TO DISCHARGES INTO TARGET ATTAINED INTO WATER BODIES. FAULTS OF WASTEWATER WATER BODIES. TREATMENT PLANTS (PDAS) AND PUMPING STATIONS (EEAS)
TARGET NOT ATTAINED REDUCE ENERGY ENERGY CONSUMPTION REDUCE ENERGY CONSUMPTION ENERGY SAVING IN CONSUMPTION (KW) WAS REDUCED BY 3%. (KW) IN THE COMPANY’S ADMINISTRATIVE IN THE COMPANY’S THE RESULT WAS BECAUSE ADMINISTRATIVE AND AND COMMERCIAL ADMINISTRATIVE IT WAS IMPOSSIBLE TO COMMERCIAL BUILDINGS BY 5%. BUILDINGS AND COMMERCIAL CARRY OUT ALL THE BUILDINGS BY 5%. PLANNED ACTIVITIES.
TARGET PARTIALLY ATTAINED SECURE SANITARY SECURE SANITARY HANDLING OF AUTHORIZATION FOR 8 AUTHORIZATION OF 5 AUTHORIZATION FOR THE HAZARDOUS WASTE FLUORIDE CONTAINER FLUORIDE CONTAINER 3 REMAINING FLUORIDE STORAGE PLANTS. STORAGE PLANTS WAS CONTAINER STORAGE PLANTS. SECURED.
Esval Sustainability Report 2009 89 07 2009 Commitments and 2010 Challenges
AREA 2009 TARGET 2009 PERFORMANCE 2010 TARGET
CUSTOMERS (PRODUCTS & SERVICES)
TARGET ATTAINED COVERAGE OF DRINKING WATER 18 DRINKING WATER PRELIMINARY PROJECTS DRIVE AND PROJECTS WERE ADD 500 NEW CUSTOMERS TO THE SEWERAGE SYSTEM BY DRINKING WATER 25 DRINKING WATER DRIVEN, WHICH DEVELOPING THE MASS CUSTOMER AND SEWERAGE PRELIMINARY PROJECTS ADDED 287 POTENTIAL INCORPORATION PROGRAM. SERVICE COVERAGE AND PROJECTS. CUSTOMERS. FOR NEW CUSTOMERS 26 PRELIMINARY UNDERTAKE 15 CONCEPTUAL INCORPORATED DUE SEWAGE PROJECTS COVERAGE OF SEWERAGE STUDIES RELATED TO HIGH-RISK TO THE INSTALLATION WHICH RESPECTIVELY SERVICE SECTORS. OF ESSENTIAL PUBLIC ENABLE 563 AND 550 SERVICES AND SERVICE 27 PRELIMINARY SEWAGE POTENTIAL CUSTOMERS UNDERTAKE 6 CONCEPTUAL CONNECTIONS TO THE SERVICE PROJECTS NOT CONNECTED TO STUDIES RELATED TO SEIZED NETWORK. WERE DRIVEN, WHICH SUCH NETWORKS TO BE ADDED 724 POTENTIAL SECTORS. ADDED. CUSTOMERS.
*THE EXECUTION OF THESE PROJECTS REQUIRES EXTERNAL FINANCING THAT DOES NOT DEPEND ON ESVAL S.A.
RECORD A MAXIMUM OF RECORD A MAXIMUM OF 20 20 CUSTOMER SERVICE TARGET ATTAINED CUSTOMER COMPLAINTS FOR NOISE. CUSTOMER SERVICE REQUIREMENTS FOR THERE WERE 17 SERVICE NOISE AND 45 FOR REQUIREMENTS FOR NOISE REQUIREMENTS RECORD A MAXIMUM OF 40 ODORS. AND 24 FOR ODORS. REGARDING NOISE CUSTOMER COMPLAINTS FOR AND ODORS AT UNDERTAKE 9 NOISE ODORS. ESVAL’S FACILITIES MITIGATION WORKS 8 NOISE MITIGATION WORKS WERE CARRIED AT FACILITIES BY UNDERTAKE THE NOISE MITIGATION OUT. SOUNDPROOFING THEM. WORKS AT THE LOS MAITENES WASTEWATER TREATMENT PLANT.
90 AREA 2009 TARGET 2009 PERFORMANCE 2010 TARGET
SUPPLIERS AND CONTRACTORS
TARGET ATTAINED THE FOLLOWING ACTIVITIES DRIVE ALL WERE CARRIED OUT: CONTRACTOR A CLAUSE WAS ADDED TO DISSEMINATION COMPANIES TO ALL WORKS, SERVICE AND ACTIVITIES OF COMMIT TO THE SIG CONSULTANT CONTRACTS, THE INTEGRATED GUIDELINES BY MEANS LAYING DOWN THAT THE PROVIDE INDUCTION TO ALL MANAGEMENT OF ITS DISSEMINATION CONTRACTOR SHALL NEW CONTRACTOR COMPANY SYSTEM ON QUALITY, DEPLOYING THE TRAIN ITS WORKERS ON PERSONNEL ON THE CORE THE ENVIRONMENT, ELEMENTS USED IN SIG ISSUES. ASPECTS OF THE SIG. OCCUPATIONAL HEALTH 2008 AND OTHERS, AND SAFETY (SIG) FOR SUCH AS ACCESS TO CONTRACTORS AND ITS DOCUMENTAL COMPLIANCE WITH SUPPLIERS. MANAGEMENT TRAINING ON RISK SYSTEM. PREVENTION AND SIG-RELATED ASPECTS WAS REVIEWED.
Esval Sustainability Report 2009 91 08
GRI-G3 INDICATORS Profile
NUMBER INDICATOR PAGE
1. STRATEGY & ANALYSIS
1.1 Statement from the CEO or most senior decision maker of the organization. 9-11
1.2 Description of key impacts, risks and opportunities. 9-11
2. ORGANIZATIONAL PROFILE
2.1 Name of the Organization. 12
2.2 Primary brands, products and/or services. 12-22
2.3 Operational structure, including main divisions, operating companies, subsidia- 12-22 ries and joint ventures.
2.4 Location of organization’s headquarters. 12
2.5 Number of countries in which the organization operates. 16 Esval only has operations in Chile
2.6 Nature of ownership and legal form. Cover & 29
2.7 Markets served. 17-19
2.8 Scale of the reporting organization. 16
2.9 Significant changes during the reporting period. 2
2.10 Awards received in the reporting period. 33
92 Global Reporting Initiative (GRI) Index
NUMBER INDICATOR PAGE
3. REPORT PARAMETERS
REPORT PROFILE
3.1 Reporting period for information provided. 2
3.2 Date of most recent previous report. 2
3.3 Reporting cycle. Annually
3.4 Contact point for questions related to the report or its content. 5
REPORT SCOPE AND BOUNDARY
3.5 Process for defining report content. 3-5
3.6 Boundary of the report. 2
3.7 State specific limitations on the scope or boundary of the report. Not applicable
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, Not applicable outsourced operations and other entities.
3.9 Data measurement techniques and the bases for calculations. 2-5
3.10 Explanation of the effect of any re-statements of information provided in There was no restatement of information provided in earlier reports. earlier reports
3.11 Significant changes from previous reporting periods in the scope. 2
3.12 Table identifying the location of the standard disclosures in the report. 93-102
3.13 Verification 103
Esval Sustainability Report 2009 93 08 Global Reporting Initiative (GRI) Index
NUMBER INDICATOR PAGE
4. GOVERNANCE, COMMITMENTS & STAKEHOLDER ENGAGEMENT
GOVERNANCE, COMMITMENTS & STAKEHOLDER ENGAGEMENT
4.1 Governance structure of the organization. 25-30
4.2 Function of the highest executive officer. 25
4.3 State the number of members of the highest governance body that are 25-26 independent and/or non-executive members.
4.4 Mechanisms for shareholders and employees to provide recommendations or Esval does not currently have this kind of mechanism. direction to the highest governance body.
4.5 Linkage between payment for members of the highest governance body, senior Esval does not have these kinds of agreements. managers, executives, and the organization’s performance.
4.6 Processes in place for the highest governance body to ensure conflicts of Esval does not currently have these kinds of processes. interests are avoided.
4.7 Processes for determining the qualifications and expertise of the members of Esval does not have these kinds of processes to date. the highest governance body.
4.8 Statement of mission, vision and values. 23
4.9 Procedures of the highest governance body for overseeing the 26 organization’s identification and management of economic, social and environmental performance.
4.10 Processes for evaluating the highest governance body’s own performance. Esval does not have these kinds of processes to date.
94 NUMBER INDICATOR PAGE
COMMITMENTS TO EXTERNAL INITIATIVES
4.11 Explanation of how the precautionary approach or principle is addressed by Esval’s quality, environmental, policy includes the pollution prevention principle, which concerns the organization. anticipating and avoiding events that certainly might cause pollution.
4.12 Externally developed economic, environmental and social charters to which 57-59, 79 the organization subscribes.
4.13 Memberships in associations. 32-33
STAKEHOLDER ENGAGEMENT
4.14 List of stakeholder groups engaged by the organization. 4-5
4.15 Basis for identification and selection of stakeholders with whom to engage. 24
4.16 Approaches to stakeholder engagement, including frequency of engagement 24 by type and by stakeholder group.
4.17 Key topics and concerns that have been raised through stakeholder 4-5 engagement.
Esval Sustainability Report 2009 95 08 Global Reporting Initiative (GRI) Index
Environmental Area
NUMBER INDICATOR PAGE
DMA Management Approach. 34-36
MATERIALS
EN1 Materials used other than water by weight or volume. 45
EN2 Percentage of materials used that are waste from other industries (valued). Esval does not use raw materials that are waste from other processes or industries.
ENERGY
EN3 Direct energy consumption by primary energy source. 46
EN4 Indirect energy consumption by primary energy source. 46
EN5 Energy saved due to conservation and efficiency improvements 47
WATER
EN8 Total water withdrawal by source. 37
EN9* Water sources and habitats significantly affected by withdrawal 38 of water.
EN10* Percentage and total volume of water recycled and reused. 39
BIODIVERSITY
EN11 Description of lands adjacent to, or located in natural protected areas or 38-39 areas of high biodiversity outside protected areas.
EN12 Description of the most significant impacts on protected areas or those of high 38-39 unprotected biodiversity.
*Additional indicator 96 NUMBER INDICATOR PAGE
EMISSIONS, DISCHARGES & WASTE
EN16 Total, direct and indirect greenhouse gas emissions. 40
EN17 Other greenhouse gas emissions. 40
40 EN20 Nitrate oxides (NOx), sulfur oxides (SOx), and other significant airborne emissions by weight.
EN21 Total wastewater discharge by quality and destination. 42-43
EN22 Total weight of waste by type and disposal method. 41-42
EN23 Total number and volume of significant accidental spills. 43
PRODUCTS & SERVICES
EN27 Percentage of products sold and their packaging materials that are reclaimed 39 by category.
REGULATION COMPLIANCE
EN28 Incidents and non-monetary value of fines or penalties for non-compliance During the reporting period there were no non- monetary fines or penalties for non-compliance with environmental regulations. with environmental regulations.
GENERAL
EN30 Total environmental protection expenditures and investments by type. 36
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NUMBER INDICATOR PAGE
DMA Management Approach. 64-65
Labor practices & work ethics EMPLOYMENT
LA1 Total workforce. 66
LA2 Total number and rate of employee turnover. 66
LA3* Social benefits provided to full-time employees. 68
COMPANY/EMPLOYEE RELATIONSHIP
LA4 Percentage of union-represented employees. 72
LA5 Minimum notice period related to operational changes. 30 days’ notice
WORKPLACE HEALTH & SAFETY
LA6* Percentage of total workers represented in joint management-worker health 72 and safety committees.
LA7 Rates of absenteeism, work accidents and injuries, days lost and number of 72 work-related fatalities.
LA8 Education programs in place for HIV or other serious contagious diseases. Programs to prevent the Hanta virus, HIV and other contagious diseases, every 2 years.
LA9* Health and safety issues covered by formal agreements with unions. 72
TRAINING & EDUCATION
LA10 Average hours of training per year per employee. 69-70
LA11* Programs for skills management and lifelong learning that support the continued employability of employees, and assist them in managing career 69-70 endings.
LA12* Percentage of employees receiving regular performance and career All Esval’s employees receive performance reviews. development reviews.
*Additional indicator 98 NUMBER INDICATOR PAGE
Human Rights INVESTMENT & PROCUREMENT PRACTICES
HR1 Percentage of significant investment agreements that include human rights Immaterial clauses.
HR2 Percentage of significant suppliers and contractors that have undergone Immaterial screening on human rights.
NON-DISCRIMINATION
HR1HR4 Total denumber incidentes of incidents de discriminación of discrimination y acciones and tomadasaction taken. . DuranteEsval el had año no 2009 incidents Esval no in registró2009 ningún incidente.
FREEDOM OF ASSOCIATION & COLLECTIVE BARGAINING
HR5 Operations identified in which the right to exercise freedom of association and collective Esval had no incidents in 2009 bargaining may be at significant risk, and actions taken to support these rights.
CHILD LABOR
HR6 Operations identified as having significant risk for incidents of child labor and The company has no employees that breach what is laid down in the legal labor regulations of the measures taken to contribute to the elimination of child labor. Labor Code, i.e., chapter 11, articles 13-18
FORCED LABOR
HR7 Risks or incidents of forced labor and measures taken to help eliminate them. The law in force in Chile lays down and is above the worldwide average on human rights clauses. Esval complies with labor and civil laws. There were no incidents of forced labor in the reporting period.
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NUMBER INDICATOR PAGE
Product Responsibility
DMA MANAGEMENT APPROACH 48-49
CUSTOMER HEALTH & SAFETY
PR1 Lifecycle stages in which health and safety impacts of products and services 60-62 on customers are assessed, and the percentage of significant products and service categories subject to such procedures.
PR2* Total number of incidents of non-compliance with regulations and Esval had no incidents due to health and safety voluntary codes concerning health and safety impacts of products and impacts on the customer in 2009 services.
PRODUCT LABELING & SERVICES
PR3 Type of product and service information required by procedures and Esval complies with the legal information requirements and regulations of its services by percentage of significant products and services subject to such information means of its bills and invoices. requirements.
The company had no incidents of non-compliance PR4* Total number of incidents of non-compliance with regulations and with the regulations and voluntary codes voluntary codes concerning product and service information and labeling, concerning product and service information. by type of outcomes.
PR5* Practices related to customer satisfaction, including results of surveys 50-54 measuring customer satisfaction.
MARKETING COMMUNICATIONS
PR6 Programs for adherence to laws, standards, and voluntary codes related In regard to ethical standards and regulations on advertising, communications and other promotion to marketing communications, including advertising, promotion, and or sponsorship, Esval adheres to the Code of sponsorship. Conduct of the Chilean Association of Advertising Agencies (ACHAP).
PR8* Total number of substantiated complaints regarding breaches of customer Esval had no legal penalties, fines or reprimands privacy and losses of customer data. by any stakeholder for breach of regulations on communications, advertising and marketing.
*Additional indicator 100 NUMBER INDICATOR PAGE
REGULATION COMPLIANCE
PR9 Monetary value of significant fines for non-compliance with laws and Esval had no fines for non-compliance with the regulation on the provision and use of products regulations concerning the organization’s provision and use of products and and services. Significant fines are understood to be services. those over CLP20 million.
Society
DMA MANAGEMENT FOCUS 74-75
COMMUNITY
SO1 Nature, scope, and effectiveness of any programs and practices that assess and 74-79 manage the impacts of operations on communities, including entering, operating, and exiting.
CORRUPTION
SO4 PAorcentajections taken y n inúmero response total to de incidents unidades of de corruption negocio analizadas. con respecto a 31 riesgos relacionados con la corrupción. PUBLIC POLICY
SO5 Public policy positions and participation in public policy development and Pursuant to its Code of Ethics, Esval rejects any lobbying. form of influence to obtain benefits that are not based on applicable legality.
Total value of financial and in-kind contributions to political parties, politicians, Pursuant to its Code of Ethics, Esval cannot make SO6* and related institutions by country. contributions to political parties.
COMPLIANCE WITH THE REGULATION
SO8 Monetary value of significant fines and total number of non-monetary penalties During the reporting period, there were no for non-compliance with laws and regulations, related to society dealings significant penalties or fines for non-compliance with laws and regulations. (government, community, institutions. academics, NGOs, etc.).
*Additional indicator Esval Sustainability Report 2009 101 08 Global Reporting Initiative (GRI) Index
Economic Area
NUMBER INDICATOR PAGE
DMA MANAGEMENT APPROACH. 80
ECONOMIC PERFORMANCE
EC1 Economic value generated and distributed 83-85
EC4 Financial assistance received from government. In 2009, Esval had access to a tax franchise for training amounting to CLP38,562,063 that was 100% of the SENCE33 franchise.
EC5* Range of ratios of standard entry level wage compared to local minimum 68 wage.
MARKET PRESENCE
EC6 Practices and proportion of spending on locally-based suppliers. 63
EC7 Procedures for local hiring and proportion of senior management. All Esval’s senior management positions are filled by Chilean professionals.
INDIRECT ECONOMIC IMPACTS
EC8 Description of infrastructure investments and services provided for public 10-11, 20, 81-82 benefit.
*Additional indicator 33 102 National Training and Employment Department INDEPENDENT VERIFICATION REPORT OF THE to believe that the information ANNUAL CORPORATE SUSTAINABILITY REPORT 2009 OF ESVAL S.A. Our Independence presented contains material errors. • There is no evidence and we are As a way of assuring our independence in unaware of any aspect that leads us the verification of the sustainability report, to believe that the Sustainability To the General Management of ESVAL S.A. in the report by means of the sources we adhered to the guidelines of the Code Report 2009 of ESVAL S.A. was cited and access to complementary of Ethics of the International Federation not drawn up in accordance with information. of Accountants (IFAC). the G3/2006 guidelines on issuing Verification scope, bases and • Selective analysis of qualitative sustainability reports of the Global objectives and quantitative information of the Remarks Reporting Initiative (GRI). GRI indicators included in the We have made a limited independent report. For ESVAL S.A. to progress with continuous • There is no evidence and we are verification of the information contained • Analyzing whether the structure and improvement of sustainability, we would unaware of any aspect that leads in the Sustainability Report 2009 of ESVAL content of the Sustainability Report like to make the following remarks: us to conclude that the self- S.A pursuant to the ISAE 3000 standard, 2009 of Esval S.A. is in keeping with assessment made by ESVAL S.A. which is limited to asking questions, what is set forth in the G3 guidelines 1) Improve the information references does not correspond to level A in undertaking analytical procedures and of the GRI. used, particularly the quantitative accordance with the standards laid tests of the data sources and analyzing data, making it easier for stakeholders down in the G3/2006 guidelines on the procedures, systems and processes Materiality who wish to review the original issuing sustainability reports of the used to issue the report. sources and giving the report more GRI. To comply with the materiality principle reliability. The content of such report is the in drawing up the report, a revision 2) In regard to periodicity and to responsibility of the management of of external factors was considered, by improve the process of informing and ESVAL S.A.. Our responsibility was to means of benchmarking sustainability analyzing the results in the reporting review the report and make conclusions reports of other water utilities, analyzing year, the report should be about the data furnished by ESVAL S.A. press articles to find out the significant disseminated more timely to in its issues for the Company and that might stakeholders and not so late in the Sustainability Report 2009, in accordance be important when drawing up the year after releasing the report. with the verification and scope outlined sustainability report. A workshop was also 3) Improve the information on the main Mercedes Vita H below. The content was appraised held with community representatives to impacts, risks and opportunities, HSE Operational Manager according to the information of the main get stakeholder insight of the information either for stakeholders or from a Bureau Veritas Chile impacts on, risks to and opportunities presented in the sustainability report. long-term perspective. of stakeholders and from a long-term Balanced Information 4) The data mainly concerns the perspective. company’s own performance Balanced information was presented, with various issues. To enhance the Santiago, Chile, December 13, 2010 The review was carried out at the reflecting the positive and negative comparability of the development of corporate offices where the data and aspects of ESVAL’s performance on issues ESVAL S.A., it is suggested that data information contained in the report was presented in the Sustainability Report of other water utilities be provided. examined by means of: 2009. Conclusions • Reviewing the processes, procedures Information Comparability and systems for gathering, compiling Considering the review of the report and and disclosing the data. The information provided in the the remarks made, the following are our • Reviewing the pertinent information report includes data beyond the year conclusions: according to its materiality. defined in the report’s scope, allowing • Verifying and consolidating the data for comparisons of the company’s • There is no evidence and we are furnished by ESVAL S.A.. performance over a two- to three-year unaware of any aspect that leads us • Reliability of the data and information timescale.
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