R$ 3.4 million INVESTED IN INITIATIVES FOR LOCAL COMMUNITIES

The Company has a series of initiatives to contribute to the sustainable development of surrounding communities, which includes investments in education, culture, health and sports projects, among others.

In 2015, the Eternit Group received tax incentives for social programs and other social investments. A table detailing the amounts received by each company can be found in the Appendix - GRI Index.

Eternit’s social and economic initiatives involving local communities

Relationship with Society

Eternit’s close relationship with local communities includes offering its highly resistant and durable fiber-cement roofing panels to low-income groups at accessible prices.

Drawing on its vast knowledge of construction materials, the Company provides support in the form of exclusive and free tools, such as Etercalc (available on the Eternit website at www.eternit.com.br). Eternit also offers courses, such as in Metallic Carpentry, Roofing and Eterplac Installer. In 2015, Eternit offered 14 vocational training courses.

Impacts

Eternit’s activities contribute to regional development in the communities surrounding its industrial facilities by expanding the offering of jobs, training and knowledge. Eternit also makes an important indirect economic contribution to these communities by paying taxes, which is transformed into benefits, such as health, transportation and education. In 2015, Eternit paid ICMS tax of R$109,969,892 and contributed R$798,616,623 to Municipality Interest Funds (FPM). A table with the amounts divided by unit is available in the Appendix - GRI Index.

The Company develops a series of actions to minimize the impacts resulting from its activities. In 2015, none of the operations registered any incidents of significant negative impacts on local communities.

Sambaíba Project

Developed by SAMA in Minaçu, Goiás, the Sambaíba Project works to promote the hiring of youth in social risk situations by providing, in partnership with the National Industrial Training Service (SENAI), training courses on the production of handicrafts made from the waste rock extracted from the mine, recycled paper and banana tree fibers.

Dialogue

Believing that constant dialogue is part of its business and upholds transparency, the Company has a series of communication tools and channels to facilitate this type of interaction, such as its activities through social networks (via Facebook), websites or e-mails. These channels allow Eternit to maintain dialogue with society and to take advantage of the moment to obtain perceptions and suggestions and to answer any questions. Other channels include the channels Talk to IR, Talk to the CEO and Talk to the Board, as well as the Annual Reports.

Global pacts and initiatives

Eternit has been a signatory to the United Nations Global Compact since 2007 and consequently its business practices incorporate the initiative's Ten Principles. Examples of this relationship between practices and principles are highlighted throughout this report. The Company also supports the Millennium Development Goals, another UN initiative.

Eternit also participates in a series of industry associations dedicated to disseminating best corporate and sustainability practices:

• Brazilian Association of Publicly Traded Companies (ABRASCA)
• Brazilian Construction Materials Industry Association (Abramat)
• National Association of Construction Material Dealers (Anamaco)
• Goiás State Industry Federation (Fieg)
• Brazilian Chrysotile Institute (IBC)
• Brazilian Investor Relations Institute (IBRI)
• International Chrysotile Association (ICA)
• Latin American Chrysotile Institute (ILAC)
• Business Leadership Group (LIDE)
• Business Movement for Biodiversity (MEBB)
• National Cement Products Industry Union (Sinaprocim)
• São Paulo State Cement Products Industry Union (Sinprocim)

Freedom of association

In 2015, the Company did not identify in its operations or in its supply chain any significant risk to the right to exercise freedom of association or collective bargaining.

Every two years, SAMA audits its suppliers through questionnaires based on the UN Global Compact and Millennium Development Goals. The process contains questions with GRI indicators to enable the Company to identify any potential significant risks related to the right to exercise freedom of association and collective bargaining.

Suppliers

In 2015, Eternit’s supply chain was formed by more than 5,000 companies divided into six categories: raw materials, services in general, transportation, miscellaneous inputs, imported goods and equipment.
All contracts entered into with partners and suppliers are analyzed meticulously by the legal department to avoid relationships with third parties that adopt illegal practices, such as forced labor, child labor or any other practice that infringes human rights. In 2015, there were no contracts involving significant investments that included such clauses.