04DIVERSIFICATION WITH SUSTAINABILITY

SOCIAL DIMENSION

Aware that social responsibility is one of the most important aspects of sustainability, the Eternit Group adopts practices to promote it.

In the subchapters that follow, we cover all the Eternit Group's social initiatives in greater depth, and the way in which they contribute to the development of the communities close to its units.

TRAINING OF THE COMMUNITY

With a view to helping neighbouring communities to develop, Eternit invests in training initiatives for the inhabitants of the towns where its operations are based.  In Minaçu, SAMA runs the Sambaíba Program, which trains youngsters, including those who are hard of hearing, for a professional life through arts and crafts courses with an environmental bent, because raw materials used consist of sterile rock extracted from the mine, recycled paper and banana leaf fibres. The Sambaíba program won first prize in the 18th edition of the Brazilian Environmental Benchmarking Program 2010, which identifies the best sustainability practices adopted by companies institutions and is one of the most respected seals of approval for sustainability in the Country.

At the Simões Filho plant a partnership has been established with the NGO Terra Mirim to train youngsters in the region to act as young eco-tour guides.  These youngsters will be able to subsequently participate in the ecological trail projects that are to be introduced in the unit's environmental preservation area.  At the plant in Goiânia, employees have obtained a high school education through the classes offered by Telecurso 2000 at the unit.  The Rio de Janeiro plant, in turn, supports the Environmental Monitor Project, run by the Jequiá Centre for Environmental Education, as part of the Municipal Secretariat for the Environment, which has the aim of training youngsters to raise the level of awareness in the local community, and with visitors, about the importance of responsible socio-environmental behaviour.

Eternit also supports initiatives focused on helping the communities where it is present. Annually the units of the Company select a number of neighbouring entities to offer products, food and toys, and in some cases cash. The Company also encourages the practice of voluntary work among its employees.

In 2010, Eternit's investments in initiatives focused on society showed an increase of 89.4% compared to 2009. Among the various projects supported and encouraged, we highlight the following below: EC8

1. Project for the Publication and Distribution of Talking Books, and Books Printed in Braille: the Eternit Group, together with other companies, has sponsored the project for the publication and distribution of talking books and books printed in Braille, set up by the Dorina Nowill Foundation for the Blind.  The objective is to distribute these books to citizens with impaired sight, throughout Brazil.  The talking books, and books published in Braille were delivered free of charge in 2010 to libraries and specialist schools located in the municipalities where Eternit maintains operations.  The partnership has been maintained in 2011.

2. São Francisco Home School: for the second year running Eternit made a financial contribution to LESF – Lar Escola São Francisco (home school), a philanthropic institution in São Paulo – SP, which runs a centre dedicated to the rehabilitation of children and adults with special needs, helping them to recover physically, provide them with an education and integrating them into society.

3. Society of the burned: Eternit contributes to the Society for the burned, with the aim of helping burn victims to be reinserted into society, particularly those from the low-income end of the population, providing them with a better quality of life.  In this manner Eternit reaffirms its commitment to Brazil in society offering people, in a just and social manner, the opportunity to be reintegrated into society.

4. São Paulo Assis Chateaubriand Art Museum – MASP: Eternit and SAMA are sponsors of the São Paulo Assis Chateaubriand Art Museum – MASP. This sponsorship initiative aims to preserve a collection of 7800 works and 60,000 rare specialist books on the history of art.

There are also other projects to which the Eternit Group contributes, such as GRAAC, the Institute for the combating and conquering of infant cancer, the Olga Kos Institute, the EcoFuturo Institute for social inclusion, and the Hospital Pequeno Príncipe (small prince), for the rehabilitation of needy children. In the cultural area, Eternit sponsored an event at the Sala São Paulo for the Israeli Philharmonic Orchestra and the reconstruction of the Chapel of the Vila São Cotolengo, in addition to sponsoring Para Olympic athletes, among other initiatives.


Tennis lessons held on the courts of SAMA

BUSINESS CHAIN

Suppliers

For the selection of its chain of suppliers, Eternit takes into account not only financial criteria, but also the worth attributed to surrounding communities, the practice of ethical principles, professionalism, and initiatives taken to mitigate environmental impacts. In this way, Eternit seeks to value local entrepreneurialism, at the same time as disseminating its values and culture of socio-environmental responsibility to other companies, encouraging the sustainable development of the Country. HR2

The Group's strategic suppliers are also evaluated rigorously as part of a qualification program.  In 2010, these suppliers represented 43% of all Eternit's purchases. None of them failed to comply with the Company's requirements. HR2 HR6 HR7

Clients and Consumers

The information on the products manufactured by Eternit and Precon Goiás is provided on labels and stamps, which follows the standards stipulated by the ABNT (Brazilian Technical Standards Association), as well as the directives of the Integrated Management System, stipulated by the Company itself. In the case of products sold containing chrysotile ore, in addition to the information supplied on the product stamps, information is also provided on the correct installation and correct handling of the product.  In 2010 the Company recorded three cases of non-compliance with regulations and voluntary codes referring to information and labelling of products and services, as shown below: PR3 PR4

  • In June, the inspection body IPEM (Weights and Measures Institute) fined Eternit Paraná for failure to calibrate a highway weighing machine that the Company uses internally. A fine was paid of R$ 2000.
  • In September, the IPEM fined Eternit Paraná for failure to provide a quantitative indication for the product "6mm corrugated tiles".  A fine was paid of R$ 2000.
  • In December, the inspection body Inmetro fined Eternit Goiânia for not providing a quantity indication for the product "fibre cement tile".  The fine of R$ 1760 has not yet been paid.

Concern about the possible impacts of its products on the health and safety of consumers is constantly present within the Group. All the manufacturing plants of Eternit and Precon Goiás have laboratories which simulate and evaluate different situations in which the products can be exposed to risks, in order to monitor how the situation develops. The System of Integrated Management requires that all the Company's products undergo this process.  At Tégula, at the plant at Atibaia, there is a field where products are tested for more than 20 years, in order to anticipate possible distortions or future risks. In 2010, no cases were recorded of non-compliance with regard to the life cycle of the products of the Eternit Group. PR1 PR2

Client satisfaction with products and services is measured by all the companies in the group. In this regard, in 2010 Eternit introduced its Consumer Service Centre (SAC in Portuguese), a specialist technical service channel, which allows the registration of the frequency of calls and the level of satisfaction. The Company also carries out research with its customers (resellers) to measure the degree of satisfaction with the service provided, delivery of products, quality, among other aspects.  Based on these results, improvement initiatives are drawn up.

SAMA also carries out such measurements, but uses a questionnaire sent to clients both in the domestic as well as the international market.  These assessments are carried out every two years, and clients receive feedback on their suggestions. Additionally, clients visited by technical or sales professionals of SAMA are questioned on their level of satisfaction with the mining company, its products and services.  They are also invited to visit the mine and the offices in São Paulo, so that they can gain a knowledge of the extraction process and obtain a better understanding of the production process. In 2010, 54 visits were carried out, with five clients visiting the Cana Brava mine.

In addition to these initiatives, at the moment that the products are received, clients may make their suggestions through the checklist process used for the receipt of merchandise. SAMA, in addition to its other communication channels, also provides telephone numbers and e-mails.

Tégula regularly carries out sample polls with its clients and distributors or representatives, with the aim of monitoring and improving its products and services.  The results are analysed by the Marketing department and publicised throughout all the departments involved, such as Sales, Industrial Operations and Quality. This research forms part of the procedures prescribed as part of ISO 9,001 certification. The Company also provides a toll-free 0300 telephone number and specific e-mails so that clients are able to make contact whenever they wish. PR5

None of the companies in the Group paid any fines in 2010 for non-compliance with the laws and regulations related to the supply and use of products and services. PR9

Competition

Eternit defends fair commercial practices, based on free competition, always in compliance with the appropriate legislation. The Company's relationship with its competitors is characterised by an ethical approach, and respect, in compliance with international standards of behaviour. In 2010, no cases were brought against Eternit for any instances of unfair competition, anti-trust practices, or monopolies, in its results. SO7

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