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