Environmental management

Eternit, Precon Goiás and SAMA rigorously comply with all technical criteria and standards established by certifying bodies, are in conformity with governing law and operate in accordance with the guidelines of the Environmental Management System. To ensure high levels of efficiency, Eternit also adopts the technique Failure Mode and Effect Analysis (FMEA), which is a tool to prevent potential problems in the manufacturing process. Although the Company manages environmental risks preventively (learn more in the section “Risk Management”), the effects associated with climate change are not contemplated in this process.

In 2015, the units of Eternit, Precon Goiás and Tégula did not register any spills. However, SAMA did register incidents, but none occurred near bodies of water. Six oil spills, in a combined amount estimated at 1,362 liters, occurred in the mining area from trucks and auxiliary mining equipment. The oil spilled was covered using sawdust, collected, stored in drums and sent for co-processing. To prevent such events, the Company provides regular training to professionals working on the internal and external vehicle fleets and frequently conducts vehicle inspections.

With a firm commitment to enhance the efficiency of its production processes and its management of resources, Eternit strives to eliminate waste in its use of inputs and offer products with a minimal environmental impact. The main measures adopted by the Company include:

Recycling: reusing materials is a common practice at the industrial units of Eternit and Precon Goiás, such as reusing the wood chocks used to stock fiber-cement roofing panels to stock bathroom chinaware, polyethylene water tanks and covers and other products.

Zero Waste: 100% of chrysotile packaging materials are reused in the production of fiber-cement. Meanwhile, any waste material resulting from production problems, breakage or products that do not conform with standards are crushed and reused as raw material.

SAMA has two ways of reusing materials: it produces pallets from waste wood from sawmills and reallocates materials remaining from production (portions from lots that did not complete a pallet). In 2015, the savings corresponded to 19,760 raffia sacks.

Waste separation: Tégula has had a selective waste collection program for more than ten years, and at certain units, such as in Içara, Santa Catarina, the project also includes the transportation and proper disposal of 100% of waste. The tables with complete information on the waste generated and transported can be found in the Appendix - GRI Index.

WATER RESOURCES

Although the topic of water gained greater attention in the past two years, given the water crisis in Brazil, Eternit always has been concerned with responsible consumption of the resource, from withdrawal to discharge. In 2015, all units operated in conformity with environmental legislation. Learn about Group’s total water discharge process, broken down by quality and destination:

At the industrial units of Eternit and Precon Goiás, water derived from the production process is stored in decantation tanks and later used in a closed recycling circuit. As a result, water loss occurs only through evaporation. The water used in the administrative facilities is treated by the state’s basic sanitation company.

At SAMA, the water from pits, which are emptied to allow mining to continue, is sent to decantation ponds (Tartarugas Lake and Jacaré Lake) and later discharged into water bodies (Caju Lake or Amianto Stream), with chemical analyses of these bodies conducted periodically. The water from pits can also be used to wet roads, industrial waste and blasting fronts in order to prevent the release of dust.

Industrial effluents from processing and the washing of waterproofed roads are directed to decantation ponds and later discharged into stabilization ponds near the pond of the Water Treatment Station.

Each industrial unit adequately treats wastewater, in accordance with the monitoring parameters established by the respective environmental agencies.

Total effluent discharge – m³/year of 2015 *

Effluent discharge	Treated effluent	Water Reuse
150,643	152,561	19,911

* Includes Eternit, Precon and SAMA units. At the production units of Tégula, effluent is discharged into the municipal sewage system and wasn’t measured.

ENERGY EFFICIENCY

Tégula plants adopt alternative measures to control energy consumption, such as using solar panels and translucent roofing to brighten internal spaces and improving gutters, as well as regularly conducting energy awareness campaigns.

EMISSIONS

Greenhouse Gases (GHG)

In 2014 and 2015 Eternit and Precon Goiás did not make the lifting of greenhouse gases emissions and there is no forecast for the work to be done in 2016.

SAMA and Tégula measure the emission of greenhouse gases (GHGs) in scopes 1 and 2, as a measure to quantify potential impacts on biodiversity. As the accounting scope 3 is not required for the methodology of the Brazilian GHG Protocol Program, at the time, SAMA assesses whether there are indications of materiality to carry out this type of evaluation and what would be the most representative emission agents. In 2015, there was a reduction of CO₂e emissions in scopes 1 and 2.

As a precaution, at its unit in Atibaia, São Paulo, Tégula monitors these gases in its diesel-powered fleet that operates throughout the unit by means of sampling using the Ringelmann scale. Meanwhile, at the unit in Içara, Santa Catarina, during the hottest months of the year, the company shuts down the LPG burning process in its drying houses to save fuel and reduce gas emissions into the environment.

In 2015, SAMA’s GHG emissions intensity was 0.22 t produced/t CO2e emissions. The calculation considered total production in the year (in tons) in relation to total GHG gas emissions (scope 1 and 2) in the year (in tons). The identification process and calculation method considered the following gases: CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃.

Tégula’s GHG emissions intensity was 0.0000327 roofing tiles produced/t CO₂e emissions (2014). The calculation considered total production in the year (in roofing tiles) in relation to total GHG emissions (scope 1 and 2) in the year (in tons). The identification process and calculation method considered the following gases: CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃. The tables with historical data on GHG emissions are available for consultation in the Appendix – GRI Index.

Emissions of ozone-depleting substances (ODS)

In 2015, Eternit, Precon Goiás and Tégula did not emit any ozone-depleting substances (ODS). SAMA consumed 120 kg of HCFC-141b during 2015, which came from emissions by vehicle air-conditioning systems due to the excessively hot weather in the year.

Emission of NOx, SOx and other significant air emissions

The industrial units at Eternit and Precon Goiás and the mining company SAMA rigorously control suspended fibers by using a sleeve filter system that filters particulates. They regularly conduct monitoring actions to measure the amount of suspended particulates. In 2015, all particulates measured in the plants presented results within acceptable parameters under the legislation in force.

At SAMA, all chimines, vacuum cleaners and swaping machines has its own sleeve filter and cartridge system monitored on a daily basis at every shift change. Inspections are also conducted periodically in various points throughout the company and the surrounding area.

PRESERVATION AND MANAGEMENT OF IMPACTS ON BIODIVERSITY

Eternit is certified by the standard ISO 14001 – Environmental Management System, which is essential for ratifying the mitigation of significant environmental impacts on biodiversity (air emissions, effluents and solid waste). Under the guidelines of the Environmental Management System, specific controls are defined based on governing laws and regulations. The Company’s strategy includes preventive actions to avoid incidents that impact the environment. In the event of any undesirable impacts, the Company follows the Emergency Plan formulated at the corporate level. All applicable legal requirements are controlled to ensure full compliance.

Biodiversity

869
CHELONIAN TURTLES ARE PROTECTED BY THE PROGRAM

The Company’s main initiatives include the preservation of its four forest reserves: Colombo (PR), Simões Filho (BA), Atibaia (SP) and Minaçu (GO); the Chelonia Project; and the use of energy from solar panels (learn more in the section “Energy Efficiency”).

The flora and fauna in the Group’s reserves include one extinct species, one critically endangered species, two endangered species and 11 vulnerable species.

Colombo Reserve in Paraná: the plant in Colombo, Paraná occupies 58,377 square meters of the Iraí Environmental Preservation Area (APA), a conservation unit created by the government that covers 115 square kilometers in five municipalities. Encrusted in the Serra do Mar mountain range, this APA has flat regions that represent transition areas between the Moist Ombrophilous Forests, also known as Araucaria Forests, and the Dense Ombrophilous Forests, and includes one of the last remaining areas of floodplain.

Simões Filho Reserve in Bahia: this is a key protected area in the Recôncavo region of northern Bahia state, which is characterized by a hot and humid climate and beautiful beaches with dunes and restinga vegetation. There are also mangrove forests rich in biodiversity in the estuary of the Joanes River and remaining tracts of Atlantic Forest with a wide diversity of avifauna. The plant area has 801,000 square meters of preserved environmental reserve.

Atibaia Reserve in São Paulo: the Tégula unit in Atibaia, São Paulo has built-up area of 1,507,487 square meters on a property with total area of 11,273,824 square meters. The total area includes a Permanent Preservation Area (APP) measuring 488,105 square meters. Approximately 20% of the APP harbors native plant species (guava, jerivá, aroeira, pimenteira, sibipiruna and others) and the remaining area features low vegetation and grassland, which is classified as Atlantic Forest. The APP is part of the Piracicaba, Capivari and Jundiaí River Basin. The climate is temperate/dry with an average annual temperature of 19º and relative humidity of 80%.

Minaçu Reserve in Goiás: SAMA’s concession area is 45 square kilometers, but approximately 80% is protected by a Forest Reserve and Legal Reserve located adjacent to the remaining 20% of area that is used for open-pit mining activities, such as ore extraction and processing and overburden and tailings piles. The Forest Reserve is located in the Serra da Cana Brava mountain range, which is formed by typical cerrado biome and is part of the Alto Tocantins River Basin. The predominant climate is humid tropical, with two seasons: a rainy summer followed by a very dry winter.

The many types of vegetation present in the Forest Reserve include: cerrado brush land, typical savanna, large savannas, seasonal forest, rupestrian fields and gallery forests.

The biodiversity is protected by a native vegetation corridor that allows wildlife to move about without coming into contact with employees. The natural corridor bypasses the pits where mining activities are conducted with the constant traffic of trucks and auxiliary machinery.

Chelonia Project: implemented in 1995, is a partnership with the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) for the conservation of native chelonian species, such as Amazon turtles, tracajás (river turtles), cágado (chelidae family of turtles), black-bellied sliders and tortoises. The objective is to raise the community’s awareness on environment protection measures. Today, 869 chelonian turtles are under the protection of the program, which includes two complementary activities: management of turtle reproduction in the Amazon forest and environmental education. With an area of 36,000 square kilometers, the Chelonia Project is the only Conservationist Vivarium for Chelonia situated within a company in Brazil and is considered a benchmark for initiatives of this kind. In addition to chelonians, the Project receives from environmental protection agencies (State Environmental Police, Fauna/IBAMA) other wildlife species, such as macaws, parrots and monkeys, which are treated and then returned to the wild.