1 SUSTAINABILITY REPORT 2 3 SUSTAINABILITY REPORT Contents SUSTAINABILITY REPORT LETTER BY THE PRESIDENT 4 ABOUT THIS REPORT 6 0.1 OUR COMPANY 10 0.2 TAKING CARE OF OUR IMPACT IN THE ENVIRONMENT 26 0.3 CUSTOMER RELATIONS 44 0.4 OUR EMPLOYEES 58 0.5 COMMUNITY RELATION IN OUR REGION 70 0.6 2011 PERFORMANCE AND 2012 CHALLENGES 76 0.7 GRI INDEX AND GLOBAL IMPACT 78 INDEPENDENT VERIFICATION LETTER 92 Nowadays the investments are mainly aimed at renewing But we are at a turning point now. We decided to start Jorge4 Lesser García-Huidobro and extending the drinking water and sewer networks, implementing the Strategic Plan for 2012-2017, which 5 President of the Board of Directors and we have invested more than 60 billion Chilean pesos means generating value for the community and the since 1999. It is important to highlight that in 2011, the shareholders in order to reach a sustainable growth. company made investments for 17,288 billion Chilean We think that it is essential to grow, adding value for pesos in the Region of Valparaíso, from which 12,081 residential customers and increase non-residential billion Chilean pesos were aimed at producing and customers by delivering customized solutions. All of this, distributing drinking water, which reflects what was certainly, being cost competitive. mentioned above. SUSTAINABILITY REPORT In the medium term, our concern is to define and Another important point is that alongside the major implement the strategic priorities for the company, infrastructures, a community network was built, which including, among others, the continuous quality allowed direct communication not only with the improvement of the service we provide. Another aspect of authorities and customers, but also with all community utmost importance is continuing having and developing SUSTAINABILITY REPORT members, such as children, young, adults and elderly a regional leadership regarding environmental care. people and their intermediate organizations. In order to extend this network, in 2011 we decentralized some Our concern is also at working to become a company of our activities, and we started our campaign Agua that is valued for its ethics and consistency with its Sana Vida Sana in Las Cruces (El Tabo), San Antonio values and principles; and to be perceived as close and and Algarrobo. We also performed training seminars empathetic. for community leaders in Valparaíso, Viña del Mar and Quilpué, for the province of Marga Marga; while the We have been fulfilling a number of goals that we have Sustainability Report was submitted to the authorities set, but providing a service like ours is an effortful task and leaders of San Felipe and Los Andes. that requires daily accomplishments, and we renew this commitment in this time. In 2011, a great challenge was posed the regional drought for the third consecutive year. This situation Finally, I would like to reiterate our commitment with the led to a decreased water source levels, in some cases ten principles of the UN Global Compact, an initiative that dramatically. For example, Peñuelas reservoir, main gathers the institutions interested in advancing topics supplier for Curauma, Placilla and the upper areas of Playa of social responsibility and which Esval has undertaken Ancha, at the beginning of 2011, had 3.5 million liters, of since 2010. a total capacity of 95 million cubic meters; therefore, we had to double our human and material resources in order Join us in our commitment of striving for further to supply these communities. For this reason, we had to improvement and contribution for the regional and carry out works and deliver water from the production national development, by reading this document and plants in Las Vegas, more than 100 kilometers away, or sending us your comments. LETTER BY THE PRESIDENT from Concón, around 50 kilometers away. Therefore, one of the tasks for 2012 is ensuring enough Dear authorities, customers and neighbors: water supply for the communities we serve. Similarly, we will continue managing the impact of the different I am pleased to present our 4th Sustainability Report, which reveals the company processes of our productive activities. We also hope to management and actions and shows our progress in continuously improving the continue being valued for improving quality of life in the activities we perform. communities we serve and collaborate with the national and local authorities. As you already know, since the private administration took over in 1999, the company has focused specially on developing a series of essential works in order Jorge Lesser García-Huidobro to support the regional development and growth. More than 500 million dollars President of the Board of Directors were invested and 15 drinking water treatment systems were built, which enabled the total decontamination of rivers, streams and coastline. Similarly, 60 tanks were built to increase water accumulation capacity. 1. Sustainability reports benchmark: National sanitary companies were included to identify the main topics and aspects reported by the industry, as well as the better reporting practices. Each group of interest had the opportunity to put forward relevant topics other than those reported in 2010. 2. Press media reviews: The objective was ABOUT THIS REPORT to know the relevant topics for the company The results of the three previous processes were included in 6 and the industry, from the perspective of a matrix which establishes the material topics and prioritize 7 the public opinion related to sustainable the level of importance. For this, the relevancy given by This is the Fourth Sustainability Report by Esval, containing its economical, social List of Material Topics development. Press releases between the industry (considering press review and benchmarking) and environmental performance, according to the criteria and requirements January 1st and December 31st, 2011 were was contrasted with the level of importance given by the established by the Global Reporting Initiative’s (GRI) Sustainability Report Guideline, to be Included in reviewed and analyzed. surveyed groups of interests. The results suggested the version G3.1. Similarly, this document is the first Communication on Progress (COP) structure for this report and how thoroughly each topic is under the commitment undertaken by Esval when signing the Global Agreement 2011 ESVAL 3. Consultation process of interest dealt with. groups: Between September and October in late 2010. SUSTAINABILITY REPORT Sustainability Report 2010, a structured process of consultation The contents of this document are only about Esval operations in the Region to groups of interests was carried out in of Valparaíso, and the period from January 1st and December 31st, 2011, unless order to receive feedback about 2010 report. otherwise is stated. For a better understanding, figures and data are for years 2009 In this opportunity the leaders of regional MATRIX FOR TOPIC PRIORITIZATION community unions and company workers and 2010, whenever it is possible to provide comparable data. were consulted through a face-to-face SUSTAINABILITY REPORT workshop. In addition, personal interviews There have been no significant changes in Esval’s size, structure and were carried out to seven opinion makers. property compared to the information provided last year. Similarly, the basis, preparation criteria and calculation methods have remained unchanged. If any indicator has been modified, it will be expressly indicated. Aspects PRINCIPLE FULFILLMENT Aspects suggested Identi ed through Odors and noise 1 IN THE CONTENT DEFINITION by the Interest Press Review Products / Services 2 High GI Groups Dumping and overflow events 4 and Industry Relevance Investment and 3 The content of this report was defined according to economical value GRI’s standard principles about relevance or materiality, (Community leaders, Contractors 9 context of sustainability and involvement of interest Workers and Opinion Customers 5 Community 10 groups. Makers) Environmental Investment 6 Occupational Health and Safety 7 In order to ensure the relevance of the information, the performance indicators were selected from a structured Energy 8 financial year, which was developed in three main phases. Solid waste 11 Legislation and Rates Aspects Identi ed 12 by Benchmark AVERAGE RELEVANCE FOR THE INDUSTRY Customer Information 13 Supplies 17 Atmospheric emissions 14 Suppliers 18 Biodiversity 15 Unions 19 Relation with workers 16 Charges in bills 21 Commitments and challenges 20 High GI Relevance and Low Industry Relevance PROMEDIO NIVEL DE RELEVANCIA PARA LOS GRUPOS DE INTERÉS FULFILLMENT OF THE PRINCIPLES Detailed information about how Esval responds to the additional expectations for ABOUT INFORMATION QUALITY information requested by the groups of interest which participated in the process for defining contents is included below. In order to take care of quality, accuracy, comparability and verifiability of the information included in this report, Esval was supported by an external consultant specialized in the GRI model. This support allowed accurate measurements, and 8 goals could be documented for the next year. 9 RESPONSE LEVEL TOPICS / QUESTIONS IN THIS PÁGE Each indicator referring to the economic, social and environmental performance REPORT of the company was prepared from data and technical calculations based on procedures confirmed by the national regulation and in line with internationally accepted standards. • Shortage of water / drought: what has been done and what