Society and the Environment
Algar Telecom believes that inspiring people to adopt sustainable practices can change the future of our planet. The same conviction is shared by all companies of the Algar Group, which is a signatory to the Global Compact, an initiative developed by the United Nations Organization (UNO) to encourage the corporate community to adopt values in connection with human rights, labor relations, the environment and the fight against corruption.
The initiatives taken by Algar Telecom to motivate its associates bring together a set of practices that concern all the Company's stakeholders, which are embedded within the scope of economic, environmental and social aspects.
To ensure its economic sustainability, the Company follows an efficient management model and a solid corporate governance policy, which makes it possible for the Company to make wise decisions at the present time, whose unfolding shall determine the future of the Organization.
The environmental cornerstone of sustainability requires a conscious and responsible
Lastly, Algar Telecom's initiatives concerning social sustainability focus on the development of the communities where the Company performs its activities, by means of undertaking educational projects, funded by Instituto Algar de Responsabilidade Social, coupled with the incentive to culture in some of the locations where it operates, including performances that were attended by more than 40,000 people.
Environmental Sustainability
Algar Telecom environmental policy goes beyond the efforts to mitigate environmental impacts in its activities. The greater purpose, fully aligned to the Company's values and beliefs, is to create an incentive chain to environmentallysustainable practices, providing associates, clients, suppliers and communities with conditions and motivation to contribute to the future of the planet. Internally, the movement to involve all the stakeholders in this pillar is called Green Influence.
The Company's Environmental Program, "Telecom Verde", joins actions, campaigns and differentiated projects that – when incorporated to the daily operations – can reduce the use of environmental resources and the production of waste. The permanent search for new ideas in this field is motivated by different actions involving associates. Since 2011, environmental engagement is a bonus-related performance that composes professionals' variable compensation. Is the last year, 100% of the associates met their goals.
Still with the goal of disseminating the environmental culture and the developing new ideas, the Company has the Telefone Verde Hotline: 4005- 9912), a voice portal created to allow clients, suppliers, communities and associates to record suggestions of good practices, environmental projects, send reports or doubts related to environmental sustainability. The call can come from anywhere in Brazil at the cost of a local call and the Company commits to return the contact in less than 48 hours in working days.
Algar Telecom Environmental Program practices contribute to the ecosystem and strengthen the Company's culture as all earnings from environmental projects ("Green Money") are 100% invested in talents training and development, as per the CEO's strategic guidelines.
In 2012, Algar Telecom destined R$ 356.0 thousand to environmental actions. The value was divided among planet conservation, awareness building and energy efficiency projects.
Total Investments and Expenses with Environmental Protection, per type.
| Type of Expense | Investment | % |
|---|---|---|
| Residue Disposal | 8,000 | 2.25 |
| Treatment of Emissions | 30,000 | 8.43 |
| Cost of Remediation | 28,000 | 7.87 |
| Cost of Prevention | 40,000 | 11.23 |
| Environmental Management | 250,000 | 70.22 |
| Total | 356,000 | 100 |
The objective of the Environmental Program is also to comply with the applicable legislation and help companies to achieve the environmental certifications relevant to their business areas. From 2009 to 2012, Algar Telecom was not penalized or suffered any non-monetary sanctions for non-compliance with environmental laws or legislations.
The main Algar Telecom Environmental Program practices are presented bellow and generated savings of more than R$ 874 thousand in 2012. The greatest achievements, however, cannot be measured in figures, but are rather translated into the Company's reputation in the market, which is essential for its perennial standing.
Natureza em conta [Nature into Account]
The unnecessary and exaggerated consumption of paper fuels deforestation. To avoid the waste in paper printing, Algar Telecom encourages the replacement of the printed bill for the online statement available through the web services channel, where the bill breakdown can be found, a second copy can be printed and payment slips downloaded. Adhesion to the electronic bill is rewarded with 50-minute free conversation bonus. In 2012, the number of clients who chose to receive their bills electronically reached 113,700.
Eco ponto [Eco Point]
It is a selective waste collection point installed at the Algar Telecom Administrative Center to receive solid waste brought by associates and community members, including cooking oil. The Company organizes several actions to raise awareness and monitors the selective garbage collection stations on a daily basis, awarding coordinators for the correct separation of residues every month (Organic, Recyclable, Non-Recyclable). During the year, 26.2 tonnes was collected and sent to the Brazilian Association of Recycling and Selective Collection.
World Car-Free Day
In the "World Car-Free Day", September 22nd 2012, the Company and other subsidiaries of the Algar Group got several associates together in a Bike Ride to raise awareness on the impact of the Greenhouse Gases effect and the importance of the Company's programs to reduce or avoid emissions, such as the Car Pooling.
Car Pooling
A permanent program aimed at decreasing the impact of associates' mobility, the second highest source of emissions of GGEs at Algar Telecom. There are twelve carpool groups (each in a different area) composed of associates who commute to work together every day. There is a specific, duly marked area in the Administrative Center parking lot for associates participating in this initiative. Associate commuting is the Company's second largest source of GGEs.
Recicle na Linha [Recycle on Line]
With the goal of giving a social-environmental destination to the bubbles that cannot be reused in Public Telephony, Algar Telecom, together with other community partners, use them to manufacture garbage collectors and boxes to store batteries. In 2012, they were also used as furniture at the trade fair Futurecom.
Energy Efficiency Week and Environment Week
The Energy Efficiency Week and the Environment Week are organized by Algar Telecom Environmental Management System and are aimed at changing the culture, encouraging conscious consumption and sustainable environmental practices. The event was held from May 28th to June 1st at the Administrative Center and offered different talks, product displays and booths with the theme of energy efficiency and environment.
Iniciativa Verde [Green Initiative] Cultural Con
In its second edition, the educational contest on environmental sustainable practices received applications for two categories. One of them, open to the general audience through the Facebook, gathered 127 participants. The other category, with 48 applicants, was directed to journalists who wrote articles published by the print media or electronically between January 1st and November 23rd. In both cases, the winners received trips to Zurich, Switzerland.
Tree Planting
The action aims at zeroing Greenhouse Gases emissions. In 2012, the goal was reached by the regional office in Franca (SP) where 2,000 trees were planted. In consolidated figures, Algar Telecom closed the year with 4,000 trees planted by its associates (over 4,236 in 2011) in four Brazilian states: Minas Gerais, São Paulo, Paraná and Goiás. The importance of this action is reinforced in the New Talent Integration Program (PINT), as everyone who enters the Company plants a tree and is committed to its growth.
SUSTAINABILITY INDICATORS
Energy Efficiency
The Company undertakes solid actions and energy efficiency projects, as well as power consumption reduction campaigns, through the Internal Energy Conservation Commission (CICE). One of the cornerstones of such efforts is the management of new technologies, aimed at preserving an environmentally-friendly telecommunication network.
At the close of 2012, 22.34% of the Company's network was grounded on the Next Generation Network (NGN) technology, which allowed for the deactivation of sites and central stations. The vacation of physical spaces results in declining demand for refrigeration, hence the power consumption. Moreover, the new central stations have no generators, which brought about a further saving on diesel consumption, thus avoiding CO2 emissions.
The combination of such initiatives yielded a 4% reduction in power consumption, equivalent to 2.2 million kWh, exceeding the established target of 2.1 million kWh.
Indirect Energy Consumption
In 2012, Algar Telecom consumed 280,136 gigajoules (Gj) of hydroelectric power (renewable). In 2011, consumption came to 220,028 Gj. The higher volume is explained by the expansion of Algar Telecom's activities.
Nevertheless, a careful examination of these figures evidences that the set of energy efficiency initiatives had a positive impact on the total reduction of energy consumption in 2012. Among the most relevant measures, of special reference are: the "Higher Temperature" project, which entails the setting out of a standardized temperature at 25°C for the air conditioning system installed at the work facilities; replacement of chillers and air-conditioners for new equipment that enjoys more advanced technology; in addition to the installation of lead lag equipment that features an automatic controller for air conditioners. Other initiatives include the modernization of the air conditioning system at the Ibiraci facilities (Minas Gerais State), the deactivation of both CDMA Central Stations and under-utilized switching equipment; as well as the replacement of analogue for digital cable TV equipm ent.
The table below sets out the positive impact form the projects of improvement regarding power reduction and efficiency. In 2012, Algar Telecom achieved a 8,068 Gj reduction, versus 4,555 Gj in 2011.
|
* electric power in Gigajoules |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Water consumption
Water consumption totaled 128,888 m3 in 2012. The year-over-year increase can be explained by the addition of new data measured by Algar Tecnologia in 2012, which were not covered by the 2011 mapping. The total sum considers ground water and supplies from water utilities. Water sources that are significantly affected by withdrawal of water - seven ground and nine surface sources - are not regarded as protected areas. Algar Telecom has no data for the size of the basins used.
| 2010 | 2011 | 2012 | |
|---|---|---|---|
| Surface water, including water from wetlands, rivers, lakes, and oceans | - | - | - |
| Ground water | 8,648 | 16,982 | 14,586 |
| Rainwater | - | - | - |
| Waste water from another plant | - | - | - |
| Municipal water supplies or other water utilities | 15,663 |
29,160 | 114,302 |
| TOTAL | 24,311 |
46,142 | 128,888 |
Use of land
The Company is not present in permanently protected areas or conservation units. However, it develops biodiversity protection programs, which include the recovery of damaged land and the planting of saplings of Cerrado area native species. Additionally, Algar Telecom conducts environmental education programs for associates, suppliers and partners.
The planting of trees contributes to the challenging goals related to the reduction and offsetting for the greenhouse gas emissions (GGE) of that have been set out by the Company for the ensuing years. Moreover, this initiative is aligned with the Company's Integration Program. The Company's new talents and existing associates are encouraged to plant a tree, who also by commit themselves to monitor the plant's growth.
Greenhouse Gas Emissions (GGE)
Algar Telecom's commitment to the reduction of greenhouse gas emissions can be evidenced by the number of initiatives previously mentioned, such as the tree planting and the incentive to join the Car Pooling Club. In 2012, Algar Telecom increased its CO2 emissions by 48.7% year-over-year, primarily due to the inauguration of a new regional office in Divinópolis. If this event is not considered, the consistent efforts exerted by the Company and its associates contributed a 7.0% reduction in CO2 emissions. The following sources were considered: cooling sodas, stationary combustion and combustion from the Company's own car fleet (scope 1), electric power (scope 2) and air travel (scope 3).
Total Direct and Indirect Greenhouse Gas Emissions by Weight
Direct Emissions
| Substance | 2010 | 2011 | 2012 |
|---|---|---|---|
| Generation of Electricity, Heat or Steam | 2,339 | 1,309 | 3,660 |
| Other Combustion Processes | - | - | - |
| Physical or Chemical Processing | - | - | - |
| Transportation of Materials, Products and Waste | - | - | - |
| Venting | - | - | - |
| Fugitive Emissions | - | - | - |
| TOTAL | 2,339 | 1,309 | 3,660 |
Indirect Emissions
| Substance | 2010 | 2011 | 2012 |
|---|---|---|---|
| Land Transportation | 476 | 675 | 963 |
| Solid Waste | 2 | 7 | 6 |
| Air Transportation | 338 | 233 | 500 |
| Office and Advertising Paper Consumption | 22 | 22 | 23 |
| Electricity Consumption | - | - | - |
| Stationary–Shared Combustion | - | - | - |
| TOTAL | 838 | 937 | 1,492 |
Other relevant indirect greenhouse gas emissions
| Substance | 2010 | 2011 | 2012 |
|---|---|---|---|
| Stationary Combustion (tonnes of CO2e) | 148 | 140 | 180 |
| Land Transportation – Own Fleet (tonnes of CO2e) | 562 | 473 | 481 |
| Cooling Gas Use (tonnes of CO2e) | 21 | 21 | N/A |
| TOTAL | 731 | 635 | 661 |
Waste Management
The incorrect disposal of hazardous materials, such as batteries, mobile phones and battery chargers, causes damage to the environment. These products contain highly toxic heavy metals, which when incorrectly disposed may leak and contaminate the soil, until it reaches the groundwater and food plantations. With a view to mitigating such impact, the Company holds collection points for batteries, mobile phones, battery chargers and phone cards, located in all of its stores and offices. In 2012, Algar Telecom disposed of 450 kg of hazardous materials, in addition to 1,000 light bulbs. After sorting them out and returning recyclable materials to producers, the recycling project disposes of potentially hazardous components appropriately.
The table below shows Algar Telecom's total waste management in 2012. The reason for the significant rise year-over-year was due to the fact that Algar Tecnologia started to monitor such data. The Company recorded no significant spills over the last three years. The target for 2013 is to maintain the lack of spills.
Total weight of waste by type and disposal procedure
| Type | Weight | Disposal Method | |
|---|---|---|---|
| 2010 | Composting | 3,955 | Waste is stored temporarily at an Ecoponto (a place at the Company for waste storage). A service provider transports and disposes of it in a landfill. |
| Recycling | 9,864 | Waste is stored temporarily at an Ecoponto (a place at the Company for waste storage) and sent to a recycling company later. | |
| Total | 13,819 | ||
| 2011 | Composting | 148,885 | Waste is stored temporarily at an Ecoponto (a place at the Company for waste storage). A service provider transports and disposes of it in a landfill. |
| Recycling | 106,905 | Waste is stored temporarily at an Ecoponto (a place at the Company for waste storage) and sent to a recycling company later. | |
| Total | 255,790 | ||
| 2012 | Recycling Residues | 30,931 | The Company provides collection points located in its own stores, shopping malls, schools, municipal hospital and Cultura HD radio station, intended to collect the technologic r esidues, which are sent to recycling companies later. |
| Non Recycling | 206,409 | Waste is stored temporarily at an Ecoponto (a place at the Company for waste storage). A service provider transports and disposes of it in a landfill. | |
| Composting | 6,465 | Waste is stored temporarily at an Ecoponto (a place at the Company for waste storage). A service provider transports and disposes of it in a landfill. | |
| Lamp Bulbs | 8,891 | Waste is stored temporarily at an Ecoponto (a place at the Company for waste storage) and sent to a recycling company later. | |
| Total | 252,696 | ||
Hazardous Waste Disposal
The initiatives to mitigate the impact from products and services include actions such as the Algar Telecom's "Natureza em Conta" program, previously mentioned, which aims at reducing the use of tonnes of paper, by encouraging the clients to opt for the use of electronic bills.
At Algar Mídia, only paper produced by manufacturers that use wood of sustainably managed forests is used for the printing of newspapers, phone directories and guides. The purchases are carried out in bulk, aimed at mitigating the impact from transportation. Furthermore, the raw material is stored in a specific location close to the production site, thus avoiding the waste of time in the production process. All the paper that is not used or returned is taken to a recycling company. The offset printing plates are also sent for recycling.
The newspaper delivery is performed by motorcycles and follows a pre-fixed route, with the purpose of speeding delivery and avoiding waste of fuel. For the distribution of phone directories and guides, the suppliers are hired in accordance with the Company's policies. It is worth pointing out that Algar Mídia has been investing significant amounts in digital products (Out of Home, Netsabe, Correio de Uberlândia online newspaper), which comes in line with the current trend and produce a lower environmental impact.
In 2012, Algar Telecom's Class I hazardous waste disposal totaled nearly 180 tonnes, including electronic equipment, pay phone domes and air conditioners, versus 160 tonnes in 2011.
Product and package recovery
Algar Telecom runs an awareness-raising campaign to encourage clients to return mobile phones no longer used. Since these devices are considered potentially hazardous, the Company takes charge of reverse logistics, disposing of each type of equipment in the correct place, all of which have a disposal flow and certification.
In 2012, 450 kg of mobile phones and components were sent to specialized recycling companies. For 2013, the Company plans to maintain the collection boxes for such materials in its own stores, shopping malls, schools and in other locations of the city, with the purpose of collecting and disposing the residues in a suitable manner.
Supplier training
Algar Telecom seeks to establish partnerships with suppliers that are also committed to sustainability. To this end, the Company has included, since 2010, an environmental provision in its contracts, which also addresses issues such as documentation, child and slave labor. Moreover, with the purpose of assuring effective adherence to the new rules, all every supplier must take a distance education training course, which includes a corporate presentation and the Company's environmental projects.
Social Sustainability
Algar Telecom believes that its operations and ongoing expansion have to promote the social development of the communities in which it is present. Constantly seeking to undertake initiatives that can change people's lives permanently, the Company believes that education is the most effective means to become engaged in improving human potential.
The educational initiatives geared towards the community, developed by the Company over the last eighteen years, have been made feasible through Instituto Algar. It is an OSCIP (Organização da Sociedade Civil de Interesse Público, or Public Interest Civil Organization) that receives donations from all the Group's companies. This enables the organization to develop social initiatives that contribute to the human development of school children and educators, which involves continuing education activities for educators and students to improve reading and writing skills, as well as promote digital inclusion. The Company's associates are also encouraged to participate as volunteers in the program.
In 2012, from the total fund raising of R$ 3 million, Algar Telecom contributed R$ 2,2 million. These funds allowed the Institute to extend the coverage of its program, from 11 to 16 cities in four states: São Paulo, Minas Gerais, Paraná, Goiás and Maranhão, involving nearly 350 educators and 6,700 students. All the cities to which the programs were extended are in the area in which Algar Telecom is expanding, which shows that Grupo Algar's business growth and social sustainability initiatives go hand-in-hand.
