Annual Report Of
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Annual Report of 2013 Sustainability Report 2013 | COPASA MG 50 Years Of Copasa Numbers, reports, statements, relevant information, achieve- have worked and work in building our 50-year history. We who know ments and expectations, here we’ll have everything one expects from our rivers and river basins, we know a little spring alone can grow a document like this. Once again, Copasa is shown and placed with when it joins to another, believe in its fate, jumps and runs through transparency. But this year we have a different report for a reason the mountains of Minas Gerais till it reaches our valleys and then directly linked to numbers: we are reporting the results of the year seek other lands where they serve. These are the rivers of Minas, we achieved our first 50 years. ready, like us the people in Minas, to integrate, unify and serve. We This report shows a bit of what we did to mark such a relevant are thus in Copasa. We look back with pride and learning in search date - the Povo D’Água workshop. A group of 71 employees, each of how best to build on the next 50 years, serving the Minas and its with experiences and practical contact related to the rivers of our people. state that makes up our nine major river basins, they dedicated In our Sustainability Report it stands out, as you can see, themselves to a work of which the vast majority had no previous some numbers: nine large basins that are actually the union of experience: embroider and turn this very act in a meaningful artistic thousands and thousands of springs, small streams and large rivers; performance, with beauty and sharing - the final work is the sum of 71 employees who symbolize all that worked here, work and still will everything that was made collectively. We share this masterpiece come to work, and 50 who are part of our history. The brief texts that with you, who will have the opportunity to enjoy it through the graph- introduce the chapters were taken from the memorial of employees, ics in this report. texts that recount their experiences in the nine basins of Minas As we can tell from here, when one gives himself to the group Gerais. The Matizes Dumont Group, internationally recognized for and share his beliefs and dreams, he enables personal and col- the quality of their work in art education, was asked to coordinate lective transformation. It was in this way that thousands of people the work. Sustainability Report 2013 | COPASA MG 3 Abstract Copasa 06 Vision, Mission, Values and Strategic Positioning 07 Message from Management 08 Key Indicators 12 Copasa History 17 Organizational Structure Copasa 19 Subsidiaries 20 Copasa in 2013 23 Corporate Governance 32 Governance Structure 33 Ethical Conduct 41 Relationship With Stakeholders 43 Economic Dimension 46 Economic Conditions 47 Financial Performance of Parent 48 Investments 57 Capital Market 59 Operational and Commercial Performance 61 Key Risks, Opportunities and Strategies 67 Sustainability Report 2013 | COPASA MG Environmental Dimension 71 Environmental Policy 72 Environmental Regulation 74 Collection and Sewage Treatment 79 Environmental Conservation 84 Energy Efficiency 87 Climate Change 89 Environmental Education 93 Social Dimension 96 Copasa and its Employees 97 Copasa and its Customers 118 Copasa and its Suppliers 123 Copasa and Community 125 Annual Social Report 134 About The Report 138 Parameters of the report 139 GRI ContentIndex 142 Acknowledgement 153 Technical Sheet 154 Financial Statements 155 Sustainability Report 2013 | COPASA MG Therefore, I feel proud and accomplished to be part of this company, that not only provides me brilliant achievements, but also helps the rivers of my story to follow their courses. Sustainability Report 2013 | COPASA MG Copasa VISION 2017 VALUES Be a reference in business management at ► Ethics and transparency in relations. the national sanitation market with the highest ► Social and environmental responsibility. number of assistance in the operating area. ► Valuing employees. VISION 2030 ► Quality of services provided. Being a global company and a landmark in ► Proud to be Copasa. the sanitation sector. ► Innovation and entrepreneurship. MISSION ► Focus on customer satisfaction. Providing solutions in water supply, sanitation ► Acting safely. and solid waste, creating value for customers, ► Dissemination of knowledge. shareholders, employees and society in a sustain- ► Sustainable growth. able manner. STRATEGIC POSITIONING Maintain the standard of quality at the lowest possible cost, focusing on the pursuit of produc- tive efficiency, expansion of production volume and minimizing expenses. Sustainability Report 2013 | COPASA MG 7 Message from Management Message from THE CHAIRMAN OF THE Board João Antônio (GRI 1.1) Fleury Teixeira Copasa, mixed economy Company, was incorporated in 1963 as a Minas Company for Water and Sewage (Comag) and had its name changed to Sanitation Company of Minas Gerais (Copasa MG), by State Law No. 6.475 of November 14th, 1974. Since 2003, became a public company and in 2006, its shares were traded on the New Market segment of the São Paulo Stock Exchange (BM & FBOVESPA) and the Minas Gerais state as its majority shareholder. In 2013, the state government, through Copasa launched the Água da Gente program, the largest sanitation program in the history of Minas Gerais, which provides funds of approximately R$ 4.55 billion in improvement projects, expansion and implementation of water supply and sewage systems, to be invested by 2016. In its first 50 years, the Company has consolidated its perfor- mance, contributing to improve the health and quality of life of the population in the state of Minas Gerais. The technical competence of our workforce is recognized by the market and our management practices based on the principles of social responsibility and Sustainability Report 2013 | COPASA MG 8 sustainability have been awarded as a business excellence model. besides the economic performance dimensions -financial, social, The recognition of the management model implemented in the and environmental and climate change. Company as evidenced by the awards received in 2013, gives a Other important achievements relate to the expansion of cover- winning sequence to this half century of life. age area and increased population served with the services provided The Metropolitan Operation Board received the top recognition by the company. We closed the year 2013 supplying treated water to award in the latest edition of the National Quality Award in Sanitation a population of approximately 14.6 million people, which represents (PNQS 2013), the Diamond Chiron Trophy, and the most important an increase of 3.4% compared to 2012, while the number of people sanitation award in Latin America. PNQS is dedicated as a reference served with sanitation services was approximately 9.3 million tool in the evaluation and continuous improvement of environmental customers, 6.2% more than the number registered in 2012. sanitation services in the country. The Época Business Magazine The year 2013 was very special to Copasa. When congratulating Yearbook 360º awarded Copasa for the second year in a row as the our employees for their achievements this year, we began to think Best Company in the Water and Sanitation Sector. The Value Award about the challenges we must overcome to continue our sustainable 1000 elected for the second time, as best Sanitation Company in growth, so that we can achieve our vision of future to be a reference Brazil and received an unprecedented award from Você S/A maga- in business management at the national sanitation market with zine because of our policies and practices in Human Resources. the highest level of service in our area, contributing to the socio- In addition, for the fourth consecutive year, Copasa takes part in economic and environmental development of society. the portfolio of the BM & FBOVESPA Corporate Sustainability Index (ISE). This index aims to reflect the return on a portfolio composed of We began 2014 with estimated investments of R$ 983 million, stocks of companies committed to sustainability and environmental for the expansion of water and collection and treatment of sewage responsibility, differentiating them in terms of quality, commitment services. We will speed up the implementation of our strategy, to sustainable development, equity, transparency, nature of product, strengthen partnerships, continue to invest in people and create value for our stakeholders. Sustainability Report 2013 | COPASA MG 9 Message from THE CEO Ricardo Augusto (GRI 1.1) Simões Campos In 2013, the year we completed 50 years, we continue to consolidate our benchmark for business excellence for a sustainable manner in order that we could overcome steps, perform undertak- ings and achieve results. We concluded the review cycle from strategic planning to articulate and set goals for the coming years, in a process involving all managers, welcoming and encouraging the participation of professionals from several areas of knowledge. We also reviewed our vision and mission and reinforced the values and principles that guide our actions in everyday life. It is a commitment of the Company with the way we deliver results, reaffirming our quest for efficiency and profitability. Copasa ended the year 2013 with a net revenue from water and sewage at R$ 3.01 billion (not including construction revenue) and Adjusted Ebitda of R$ 1.14 billion. During the year, investments totaled up R$ 909.2 million, applied mainly in the collection and treatment of sewage (R$ 566.4 million) systems and water supply Sustainability Report 2013 | COPASA MG 10 systems (R$ 321.5 million), which resulted in significant expansion (WWTP) in various cities in the state of Minas Gerais, among them: of capacity of helping users with the services provided by the com- Conceição do Mato Dentro, Mirabela, Montalvânia, Salinas, Santa pany. Still, three new concession contracts for the provision of health Luzia and Santa Rita do Sapucaí.