The Eternit way of building

Ethical Conduct and Business Transparency

G4-DMA-Non-discrimination | G4-DMA-Anti-competitive Behavior | G4-SO7 |
G4-HR3 | G4-DMA-Diversity and Equal Opportunity | G4-58

Eternit's history spanning more than 75 years was built on solid ethical conduct and the full transparency of its business, as demonstrated by the strength of its brand and its nationwide recognition. Reaffirming the Company's commitment to building ethical relationships and its efforts to disseminate a culture of transparency, in 2015, there were no incidents of anti-competitive behavior, corruption, trust practices or monopoly by the Company. There were also no incidents of discrimination



CODE OF ETHICS
AND CONDUCT

76% WAS THE SCORE ON THE ITEM "PRIDE IN BELONGING" IN THE WORKPLACE CLIMATE SURVEY, WHICH WAS HIGHEST OF THE STUDY

Created in 2004, the Code of Ethics sets forth the rules of conduct established by the Company and 100% of employees have become familiarized with its contents, whether through the new employee integration program, the Employee Manual, the Intranet, regular training programs or constant internal communications.

Striving to forge solid relationships with all of its stakeholders, Eternit has divided the chapters of its Code of Conduct into pillars that establish the principles for interacting with each one of them. The main guidelines expressed include repudiation of any form of discrimination or corruption.

Deviations from the rules established in the Code of Ethics are subject to disciplinary action and, depending on the severity, could lead to the professional's termination. The guide also establishes mechanisms for protecting employees in cases of whistleblowing.

In 2015, an Ethics Workshop was held at all units of Eternit and Precon Goiás, which engaged employees in the posture and conduct guidelines established in the Code of Ethics. The purpose was to link the individual's value to the exercise of their functions and Eternit’s pillars with a view to strengthening the culture of transparency in the organization. The result can be measured by the sense of pride that employees have in the Company. In the last climate survey, this was the best performing item, with a score of 76%.

The Code of Ethics is based on the principle of equal work opportunities for all employees regardless of race, social class, nationality, religion, disability, gender, sexual orientation or any other form of diversity. Like all guidelines, those related to diversity must be fully understood, complied with and respected.

In addition to its continuous oversight, the Group maintains the following channels for reporting any deviations of conduct


In addition to constant monitoring, the Group maintains channels below for reporting any misconduct:
Eternit

• Talk to HR
• Talk to the CEO
• Talk to the Board

SAMA

• Talk to the CEO Program

Tégula

• Talk to the CEO


Learn more in the section Code of Ethics and Business Transparency or access the other policies ain the IR website (www.eternit.com.br/ir) in the section Corporate Governance/Policies and Codes.



COMPLIANCE

G4-DMA-Anti-corruption | G4-45 | G4-57 | G4-SO3 | G4-SO4 | G4-SO5

Eternit makes an intense effort to ensure ethical conduct and conformity with all laws, regulations and policies in the execution of its activities. Corruption, as with all values involving ethics, was the subject of constant debate at all units of the Company and was supported by the hiring of experts. In 2015, the Group did not register any incidents of corruption by its employees at any of its companies

Precon Goiás Plant in Goiás



To strengthen its employees’ compliance with laws and regulations and emphasize the importance of being increasingly concerned with ethical conduct for creating a positive organizational environment and responsible relationships, Eternit invited instructors and experts to discuss the topic and its importance in all of the Company's interactions.

The Home of Ethics

G4-SO6 | G4-DMA-Public Policies

At SAMA, the action was developed through the ongoing Transparency campaign, which was created to ensure that inadequate practices involving corruption do not occur in its management. All of the company's processes were subjected to an audit conducted by the parent company Eternit and to an audit conducted by a third party. In addition, efforts to raise awareness among all employees, third-party service providers and partners were made during the integration process and in Daily Safety Dialogues (DSD). To more actively engage employees in issues involving compliance, SAMA installed ballot boxes through which employees throughout the company can submit messages and participate anonymously.

In 2015, no donations or contributions to politicians or political parties were made.



Human rights

Total training on human rights administered by all companies of the Eternit Group corresponded to 3,271 hours.
G4-DMA-Security practices | G4-HR2 | G4-HR7

As a Group that values relationships and respect, Eternit invests in propagating the rights and freedoms that are basic to all human beings. In the case of the companies Eternit and Precon, employees become familiarized with the standards and procedures related to human rights through the Employee Manual, training programs and internal communications. All new hires undergo training during their Integration Program. In 2015, 1,843 hours of training were administered on policies and procedures related to the aspects of human rights relevant to the operations. At SAMA, training on the Code of Ethical Conduct, which involved 100% of new employees, third-party service providers (suppliers and property security) and interns hired in Minaçu or São Paulo in 2015, covered the relationship between individuals and organizations and provided guidance and information on violations of human rights. A total of 1,420 hours of training were administered.

SAMA Mining Company in Goiás