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Sustainability Report 2017

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Sustainability Report 2017 ECONOMIC • Sales record: 7% increase in volume • 19 patents placed SOCIAL • 29 new products launched to assist and improve people's lives • Fostering the education of children and teenagers ENVIRONMENTAL • 15% of industrial water used come from reutilization • Target of CO2 emission reduction until 2020 reached in 2017 SUSTAINABILITY REPORT 2017 Summary Messages from the leadership About the 04 report 08 11 2017 highlights OXITENO 20 Management of excellence 10 22 Awards and Recognitions Governance 28 CORPORATIVE Sustainability GOVERNANCE Ethics and 34 24 40 Agrochemicals transparency 42 Personal care & Home care PRODUCTS AND and I&I (HPC) SERVICES 43 Paints and coatings 36 44 Oil and gas 45 Performance products Training 54 PEOPLE Attracting talents 57 46 61 Energy ENVIRONMENT 62 Water and effluents 58 65 Emissions 67 Wastes Occupational health 71 and work safety SAFETY Safety and process 73 70 Product safety 73 74 Customers VALUE 75 Distributors CHAIN 74 76 Suppliers 78 Social development GRI content summary 80 Assurance Statement 84 SUSTAINABILITY REPORT 2017 The Pasadena plant in Texas strengthens Oxiteno's presence in the world's largest surfactant market. Oxiteno contributed to the good performance of Ultra with a record growth of 7% in sales and net revenue. Part of the Ultra Group, Oxiteno prioritizes safety, the environment, quality and excellence in its operations. 04 OXITENO · SUSTAINABILITY REPORT 2017 Ultra celebrates 80 years G4-1 Ultra's CEO Our trajectory is marked by our com- new Pasadena plant in the state of Oxiteno helps mitment to safety, the environment, Texas expected to occur in 2018. The quality and excellence, as well as our new site will allow us to compete with to design our passion for our customers - charac- even more effectiveness in the country, teristics that Oxiteno and other Ultra today the largest market for surfactants business globally, businesses have helped to consolidate in the world. over time. With 80 years of recently reaching markets completed history, Ultra has a manage- We are sure that innovation is the ment model focused on value genera- recipe for Oxiteno's success. This focus in Latin America, tion, which seeks to constantly engage makes it possible to identify and offer our employees and has in sustainability specific solutions for each customer, the United States, one of the main guiding elements of improves the performance of the final our strategic and operational actions. products and guarantees the highest Europe, Africa and level of safety and the lowest socio-en- The year 2017 was marked by a slow vironmental impact. In 2017, of the Asia. recovery of economic activity in Brazil, US$ 145 million invested in Oxiteno, after two years of deep recession, a US$ 16 million was directed to research context that affected not only Ultra and development. but other Brazilian companies from the most different sectors of the econo- In this Sustainability Report, we invite my. Still, we achieved another year of you to know these and other high- consistent results, with revenue growth lights of Oxiteno, a company whose across our business. Ultra's consolidat- portfolio is employed in items of ed revenue increased 3% to US$ 25 the most distinct segments, all of billion. which are present in the daily lives of people, who are the customers of Oxiteno contributed to the good our clients and with whom we are performance of Ultra with a record equally committed. growth of 7% in sales and net revenue. Part of this result is due to the premar- keting movement in the United States Frederico Curado in preparation for the start-up of the CEO of Ultra MESSAGES FROM THE LEADERSHIP 05 More efficiency and generation of socio- -environmental value G4-1 We achieved important results in 2017, (Mexico), responsible for the supply of essential to evolve our strategies for products marketed in the region. internationalization and strengthening our operations in Brazil, in line with We have also conducted a restructur- the main objective of making Oxiteno ing of our operational model, Project a leader in the manufacture of surfac- Evolution, which covers Oxiteno's tants and their applications. international and regional governance. The reorganization of our governance In 2017, we celebrate ten years of the structure aims to increase the regional operation in the United States. Serving focus of the operations, not compro- the customers of this market has been mising global optimizations, adding 10 a challenge that has already resulted value to the relationship with custom- years of operation in the in new partnerships in North America. ers and the innovation process, topics To leverage our operations on the relevant to us and fundamental for the United States continent, we have focused efforts to future we design for the business. complete the construction and instal- lation of the new alkoxylation plant Attention to innovation resulted in 19 in Pasadena, Texas, with a production patents deposited and 29 products capacity of 170,000 tons per year. The launched in 2017 - Oxiteno's current site has started its operation in 2018, portfolio brings together 530 products, and manufactures products that began all of them developed from safety, to be sold in 2017 in the region, thanks quality and performance assumptions. to a pre-marketing action, which Our research and development (R & D) sought to ensure the structuring of process is also focused on the adop- sales channels and the conquest of the tion of raw materials from renewable market. The strategy was supported sources, care for the environment and by the operations of Camaçari (Brazil), the promotion of health and well-be- Mauá (Brazil), Santa Rita (Venezuela), ing, guidelines that integrate Greenfor- Tremembé (Brazil), Suzano (Brazil), Gua- mance – our concept of sustainability. dalajara (Mexico) and Coatzacoalcos (Mexico). 06 OXITENO · SUSTAINABILITY REPORT 2017 We recognize the leading role of our employees in the good performance of the company. 80% of the new management positions were occupied by professionals who were already part of Oxiteno. Superintendent Director of Oxiteno In the productive process, the initia- We recognize the leading role of our Our results and initiatives are regularly tives sought to combine efficiency team for the good performance of disseminated among our employees, gains, cost reduction and environ- the company. No wonder, 80% of the suppliers, clients, communities and mental impacts. We continue to invest management positions created in 2017 other publics, as part of a process that in certifications for all oursites, which were occupied by professionals who aims to add transparency to the rela- contribute to the maintenance and were already part of Oxiteno. Equally tionship we maintain with all of them improvement of the quality of the fundamental are our suppliers and and of which the Sustainability Report management processes of our opera- business partners, with whom we have is an essential part. In the following tions, as well as to promote safe behav- built our value chain over the years. pages, we share with you, the reader, ior among all employees, continually The distributors' management plan, for the main advances and challenges of engaging them in important aspects of example, has been adding improve- our company in 2017. the environment, health and safety. ments in the distribution of products, consolidating sales channels and sup- We broaden our engagement with the porting our customers in their business Good reading! global agenda each year to increase strategies with agility and quality. our contribution to the generation of João Benjamin Parolin value to society. We correlate our rel- We have remained committed to Oxiteno's Superintendent evant sustainability topics (also called establishing partnerships for the Director material topics) to the Sustainable development of the regions where we Development Goals (SDG) (see pages are present. In addition to contributing 30 and 31). Our practices to promote to the growth of other industries, we water efficiency and management of want to boost the local market and greenhouse gas emissions have been generate value to the community. recognized by the Carbon Disclosure Project (CDP) in the past two years. All these initiatives contributed to the About 15% of the water consumed results achieved in 2017. Sales volume in the processes of our plants in Brazil grew 7%, a record volume in com- comes from reuse and we avoid the modities as well as the volume sold emission of almost 71 thousand tons of in pre-marketing to the United States CO2 equivalent in 2017 with practices due to the new site and growth in the to reduce emissions and transform domestic market. On the other hand, these gases into an energy source. the average price of the Real, 9% more appreciated, mitigated, in parts, these effects. MESSAGES FROM THE LEADERSHIP 07 About the report The Sustainability Report 2017 brings governance structure, performed as together the main results of the year part of the internationalization strategy. related to the nine topics relevant to The financial amounts originally given Oxiteno and its stakeholders, pointed in Reais (R$), Brazilian currency, were out during the materiality process translated into US Dollars (US$), consid- carried out in 2015 by the company. In ering a conversion rate of 3.19. G4-18, the process, the perceptions of more G4-23, G4-24, G4-25, G4-26 and G4-27 than 300 employees, suppliers, cus- tomers and communities were collect- Oxiteno thanks all the employees who ed, as well as the analysis of strategic contributed to the preparation of the documents of Oxiteno and its industry. Sustainability Report. The content also brings information pertinent to updating the company's More than 300 people were heard during the materialization process. Employees, suppliers, customers and communities supported Oxiteno in identifying its strategic topics.
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