table of contents I. Message from the Chairman
04
II. The Report
07
III. CUF
10
Vision, Mission and Values
11
Business Units
12
Products
14
Management Approach
15
Strategic Vision
16
Business Model
17
Stakeholders
18
Materiality
21
Governance
22
IV. Sustainability
24
Economic Domain
25
Environmental Domain
30
Social Domain
41
V. GRI Index
54
General Standard Contents
55
Specific Standard Contents
58
VI. Attachments
61
Human Resources
62
Methodological Notes
72
Abbreviations and Acronyms
73
VII. Verification Report
74
Message from the Chairman CUF is steadfastly present in the Portuguese Chemical Industry, also being present in other regions through its exports, and industrial operations in Spain. Nowadays, the company is betting on an internationalization strategy paired with the development and demand for excellence of its activities in Portugal. Aware of the mission and values intrinsic to CUF’s DNA, we aspire to be a company par excellence in the chemical sector, committed to fully satisfying every one of our stakeholders while contributing toward a prosperous and sustainable future. CUF’s Sustainability Report, for the year 2015, mirrors our permanent focus on sustainable development in economic, environmental and social terms, by implementing several measures based on Innovation, Skill and Human Development.
5
The principles of sustainable development underpin the company’s strategy, by constantly implementing improvements to activities and processes, so that they become increasingly profitable and with lower environmental impact, as well as by always getting all of its employees to engage in social responsibility. This is the context in which new activities were undertaken, throughout the year 2015, in order to respond to our goals, such as the various projects involving Research, Development and Innovation developed with the processes’ overall efficiency in mind. I would also like to highlight the publishing of CUF’s Code of Ethics, which raises awareness to the values we have all adopted, and the launch of CUF’s new website, which results from emphasis on a new communication strategy. As part of an increasingly global and competitive market, we are committed to the success of the business, by combining the company’s long-term strategy and vision with the three pillars of sustainability – economic, environmental and social. These guidelines direct CUF’s operations, so that it can achieve growth as an environmentally responsible company while aiming for the satisfaction of all of our stakeholders. Therefore, I am very pleased to note that the word sustainability currently cannot be dissociated from CUF’s strategy and operating mode.
João de Mello
CUF’s CEO
6
The Report CUF’s Sustainability Report, drafted in accordance with the Global Reporting Initiative (GRI) guidelines, version 4.0, under “in accordance - Core”, is aimed at describing the company’s economic, environmental and social performance, namely as concerns its material topics during the 2015 fiscal year. In addition, the report seeks to publicly assume CUF’s responsibilities toward all stakeholders, namely by subscribing to the three principles under the AA1000APS standard. Depending on their relevance and materiality, Environment and Product Responsibility indicators only report the activities of CUF – Químicos Industriais, S.A. (CUF-QI). However, the indicators pertaining to the Economic and Social performance report CUF’s corporate activities on Portuguese territory (except the indicator EC1, which includes every CUF company). The contents of this report can be supplemented with information from the previous CUF Sustainability Report 2014, the Annual Financial Statements and the company’s institutional website (http://www.cuf.pt).
8
All of the information included in this Report, along with its sources, was duly audited internally and externally by PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda., in accordance with the Verification Report, enclosed at the end of the document. Requests for clarification on this report may be addressed to: • Micaela Pires Cabral (
[email protected]) Manager of Planning, Management Control, Innovation and Sustainability • Ana Casaca (
[email protected]) Head of Innovation and Sustainability
9
CUF Vision, Mission and Values Vision
CUF aims to be a competitive chemical company par excellence, which generates value in the global market through the production and commercialization of products that contribute to a better world. Mission
Whether in consolidated businesses or future projects, CUF adopts the values of the José de Mello Group. These values, present in all of CUF’s activities, include:
• Innovation • Skills • Human Development
CUF’s mission is to ensure the full satisfaction of its customers, suppliers, employees and shareholders through the growth and commitment to continuous improvement, in order to hold a prominent position in the Chemical Industry.
Values
CUF follows a culture of quality and environmental protection, so as to develop its companies and promote shareholder satisfaction, as well as the fulfillment of its employees.
11
Business Units CUF is organized into two business units: Industrial Chemicals and Nanomaterials. Industrial Chemicals
In Industrial Chemicals, CUF is mainly focused on two major value chains: aniline and chlor-alkali. In aniline’s value chain, CUF is positioned as a strategic partner for large consumers of this product. From its factory located at the Estarreja Chemical Complex (ECC), CUF supplies a nearby customer in an integrated manner. CUF also supplies several customers operating in various geographic locations through its distribution centers. CUF leads aniline sales in Europe and is the world’s 4th largest producer, not integrated in its own production of Diphenylmethane Diisocyanate (MDI). CUF is also the largest European producer of pure sulfanilic acid. In the chlor-alkali value chain, CUF is the 3rd largest Iberian producer, supplying a wide range of customers from the most diverse fields of activity. In order to complement these value chains, CUF also operates in the production of sodium chloride (common salt), chiefly for its integrated consumption.
Nanomaterials
In the Nanomaterials business unit, CUF operates through its subsidiary Innovnano - Materiais Avançados, S.A. (Innovnano), providing a diversified range of nanostructured ceramic materials produced using a patented process internally designated as Emulsion Detonation Synthesis (EDS). LOCATION OF CUF’S MAIN ACTIVITIES PORTUGAL
Estarreja
SPAIN
NORTHERN EUROPE
Belgium Antwerp
Pontevedra
Aveiro Coimbra Pombal Oeiras Barreiro
United Kingdom London
legenda:
Industrial Chemicals: production units
Nanomaterials
Industrial Chemicals: logístics centres
Headquarters
12
COMPANIES OF CUF’S UNIVERSE
CUF is 81.5% held by José de Mello, Participações II, SGPS, and 18.5% held by Guimarães de Mello Portugal, SGPS, S.A. The Industrial Chemicals business is centered on the CUF-QI company, which, in turn, has several subsidiaries. In June 2015, the company CUF-QI integrated two of its subsidiaries, Aquatro and Quimigest, by including their activities and employees.
CUF’S MAIN COMPANIES Location of Operations
% Ownership
CUF - Consultadoria e Serviços, S.A. (CUF C&S)
Oeiras
Parent Company
CUF - Companhia União Fabril SGPS, S.A. (CUF SGPS)
Lisbon
100%
Estarreja
100%
Pombal
100%
Pontevedra
100%
Barreiro
100%
Barreiro
100%
Aveiro
100%
Coimbra
100%
Industrial Chemicals CUF - Químicos Industriais, S.A. (CUF-QI) Renoeste - Valorização de Recursos Naturais, S.A. (Renoeste) Eletroquímica del Noroeste, S.A. (Elnosa) Nutriquim - Produtos Químicos, S.A. (Nutriquim)
Support - Industrial Chemicals AP - Amoníaco de Portugal, S.A. (AP) SGPAMAG - Sociedade de Granéis, S.A. (SGPAMAG)
Nanomaterials Innovnano - Materiais Avançados, S.A. (Innovnano)
13
CUF’s organic products are intended for export, either through DOW Europe, headquartered at the ECC, or directly to the international market (Germany, Belgium and Slovakia). Inorganic products are intended chiefly for the Iberian market. In the Nanomaterials unit, the current portfolio of products intended for the international market comprises high-quality nanostructured ceramic materials, including monoclinic zirconium and various types of zirconium oxides stabilized with yttria. In addition, the ability to customize production technology allows for the adaptation or optimization of products according to specific client requirements. The main applications of these materials most notably include technical ceramics, thermal barrier coatings and photovoltaic components.
ANILINE AND DERIVATIVES (ORGANICS)
In Industrial Chemicals, CUF holds a wide-ranging product portfolio in the aniline and chlor-alkali value chains. These products are manufactured chiefly from raw materials and utilities such as benzene, ammonia, salt, hydrogen and electricity.
MAIN PRODUCTS OF INDUSTRIAL CHEMICALS
CHLOR-ALKALI (INORGANICS)
Products
Main Products
Applications
Nitric Acid
Chemical industry, fertilizers, paints and pigments
Sulfanilic Acid
Rubber industry, paints and pigments
Aniline
MDI, rubber industry, paints and pigments, special fibers
Cyclohexylamine
Chemical, pharmaceutical and rubber industries
Cyclohexanol
Polymer industry, special fibers
Mononitrobenzene
Aniline, chemical and parmaceutical industries
Hydrochloric Acid
Chemical industry, PVC, steel industry, hygiene and cleaning products
Chlorine
PVC, polyurethanes, water treatment
Sodium Hypochlorite
Water treatment, hygiene and cleaning products, textile bleaching
Caustic Soda
Chemical industry, textile, cellulose, food industry, detergents and soaps
14
Management Approach
CUF-QI
Integrated Management System
In order to ensure responsible action at every level, the Industrial Chemicals business unit, namely CUF-QI, has used an integrated approach to implement the Management of Quality and Environment, Workplace Health and Safety, Serious Accident Safety and Prevention, and Research, Development and Innovation (RDI). Thus being the case, CUF-QI includes Policies governing Quality, Environment and Safety, Serious Accident Prevention as well as Innovation, along with advisory bodies for supporting the implementation and maintenance of the said management systems:
• Council governing the Quality and Environment Management System; • Workplace Safety, Hygiene and Health Commission; • Council governing the Research, Development and Innovation Management System.
These bodies act on every activity inherent to developing, producing, storage and marketing of products and support processes.
• Certified under ISO 9001:2008 regarding its Quality Management System since 2003; • Certified under ISO 14001:2004 regarding its Environment Management System since 2007; • Certified under OSHAS 18001:2007 due to compliance with every requirement governing Workplace Health and Safety, as required under this international standard, since 2013; • Certified under NP 4457 regarding its RDI Management System since 2013.
Innovnano At Innovnano, the quest for continued improvement and fostering the use of best practices led to the implementation of the following management systems.
• Certified under ISO 9001:2008 regarding its Quality Management System since 2014; • RDI Management System according to NP 4457 implemented since 2014.
15
Strategic Vision
CUF’S MACRO STRATEGY
CUF has developed a long-term vision of becoming a company par excellence, with strong growth, relevance in the chemistry sector and a superior ability to generate value for all of its stakeholders. In order to respond to its ambitious vision and, simultaneously, to major external challenges, CUF has realigned its strategy and its business segments around future market trends, as well as its internal competencies, which are closely linked to technological innovation and operational efficiency. CUF has established a unique position in the intersection of these three elements, seeking to progressively accomplish them, in order to ensure the sustainability of its business. For the near future, CUF has developed an action program - CUF 2020 - with specific strategic objectives and guidelines, in line with the company’s vision.
Presence in value chains aligned with major trends over 20/30 years (e.g.: health, water, energy efficiency)
Sustainable Markets
Balance between established and emerging products/markets Entry into new geographic regions
Adoption of new technologies, disruptive and incremental, focusing on efficiency and/or more sustainable production Differentiation via methods Adoption of new business models (e.g.: Over-The-Fence)
CUF Excellence in
Operations
Innovation
Increasing efficiency, reducing consumption and waste Efficient production scales Safety and quality in production
CUF 2020 STRATEGIC GUIDELINES CUF 2020 Strategic Guidelines
Development of new international opportunities in the aniline market, with the Over-The-Fence concept
CUF 2020 Leader in core markets Revenue > 900 M€ EBITDA margin > 10%
Expansion in the Iberian chlor-alkali market, taking advantage of the need for technologically updating the installed capacity Focus on products of higher added value in the business of nanomaterials, leveraged in Innovnano’s unique production process Improved efficiency in Estarreja, combined with the implementation of improvements in Quality, Safety and Environment Greater commitment in the operations of Research, Development and Innovation
16
Business Model The companies’ business model in the field of Industrial Chemicals based in the Estarreja Chemical Complex adopts the Over-The-Fence concept. This concept aims to provide a direct link between key suppliers and customers by way of pipelines, in an integrated manner. Thus, the benefits of a vertically integrated production are combined with the advantage of access to prices, market rules and transparency of external suppliers. In addition to the Over-The-Fence model, CUF’s Industrial Chemicals also operate in a traditional supply model to domestic and international markets, through an efficient multi-modal logistics chain in order to meet customer requirements with competitive prices and differentiating service and flexibility. In both models, the idea is to find solutions that minimize the total cost of ownership for customers, providing high performance and efficient solutions, ensuring safety and reliability of the service provided. In the Nanomaterials area, the business model is established on the principles of product differentiation and price competitiveness: product differentiation by means of the continuous search for innovative products that satisfy the needs of its customers, in terms of performance and technical features; price competitiveness by leveraging the competitive advantages of EDS technology while seeking to meet customer requirements at controlled costs.
CUF BUSINESS MODEL
CUF Business Model
Differentiating value proposals for customers
Key upstream activities, particularly relations with key partner suppliers and efficiently procuring raw materials The key production activities using CUF’s differentiating industrial assets, like skilled human resources and intellectual property Key downstream activities, particularly relations with partner customers, with the various distribution channels and with the different business segments
17
Stakeholders
MATRIX OF CUF’S STAKEHOLDERS
CUF’s main stakeholders were identified at a meeting regarding the topics of sustainability and ethics, through a dynamic group exercise. As a result, all stakeholders currently influencing the development of business were identified, discussed together and then validated and mapped in a matrix according to their degree of influence.
The relationship with the local community of Estarreja is strengthened by the Painel Consultivo Comunitário do Programa Actuação Responsável (PACOPAR), founded by CUF in 2001, in partnership with other companies operating in the Estarreja Chemical Complex. PACOPAR is a joint initiative group which aims to improve the quality of life of the local community by applying the principles of Responsible Care;
The relationship between CUF and its closest customers and suppliers is formally and informally strengthened through various meetings and regular coordination mechanisms allowing the integrated operation of the Estarreja Chemical Complex.
Employees
Organization’s Impacts on Stakeholders
Aware of the contribution of different stakeholders toward the company’s future sustainability, CUF has developed various mechanisms to pro-actively and systematically manage and improve its relationship with them. Noteworthy examples include the following:
4
Local Community
Industry Associations
NGOs and Advocacy Groups
Costumers Suppliers Shareholders
Government/ Regulators
Scientific and Technological Partners
Analysts and Media
0
4
Stakeholder’s Impacts on the Organization
18
CUF AND STAKEHOLDERS RELATIONSHIP Stakeholders
Interaction Mechanisms
Employees
Clients
Suppliers
Partners of the Scientific and Technological System
Shareholders
Website, LinkedIn and Youtube
Website, LinkedIn and Youtube
Website, LinkedIn and Youtube
Website, LinkedIn and Youtube
Website, LinkedIn and Youtube
Annual Financial Statement, Sustainability Report and Code of Ethics
Annual Financial Statement, Sustainability Report and Code of Ethics
Annual Financial Statement, Annual Financial Statement, Sustainability Report and Code of Ethics Sustainability Report and Code of Ethics
Annual Financial Statement, Sustainability Report and Code of Ethics
Intranet platforms
Mass media
Open Doors Day
Regular meetings
Regular meetings
Internal communication (e-mail and Newsletter)
Open Doors Day
Regular meetings
Contract negotiations
Group Committees
Computer platforms (SAP and SIAWISE)
Information sessions
Contract negotiations
Partnership RDI activities
Library (physical and digital)
Sales and monitoring meetings
Satisfaction surveys
Information placards
Technical assistance
Internal programs involving the company and the employees
Satisfaction survey
Visits to companies of the José de Mello Group Theme-based meetings with other companies Training and awareness raising initiatives Performance Assessment Meetings of the Workers’ Committee
Relevant Topics
Skills management
Price, product and safety features
Contracts and payments
Company performance
Company performance
Remuneration and motivation
Flexibility in product deliveries
Business impact and risk mitigation practices
Long-term commitments
Risk control
Job stability
Managing suggestions and complaints
Ethics and transparency
Ethics and transparency
Ethics and transparency
Working conditions
Overall customer satisfaction
Innovation and sustainability
Innovation and sustainability
Innovation and sustainability
Health and safety
Ethics and transparency
Strategic development
Innovation and sustainability
Human Resources and Communication Management
19
CUF AND STAKEHOLDERS RELATIONSHIP Stakeholders
Interaction Mechanisms
Local Community
Industry Associations
Regulators
Comunicação Social
Website, LinkedIn and Youtube
Website, LinkedIn and Youtube
Website, LinkedIn and Youtube
Website, LinkedIn and Youtube
Annual Financial Statement, Sustainability Report and Code of Ethics
Annual Financial Statement, Sustainability Report and Code of Ethics
Annual Financial Statement, Annual Financial Statement, Sustainability Report and Code of Ethics Sustainability Report and Code of Ethics
Open Doors Day
Regular meetings
Mass media
Volunteer programs
Signing agreements
Information sessions
Local initiative programs
Participation in working groups
Radio and television programs
PACOPAR meetings and magazine
Relevant Topics
Environmental and social impacts
Company best practices
Environmental and social impacts
Local development
Ethics and transparency
Company strategy
Risk and impact mitigation mechanisms
Environmental safety
Ethics and transparency
Ethics and transparency
Innovation
Signing agreements
Innovation and sustainability
In late 2015, CUF started a new project in the field of Sustainability, aimed at formally consulting its stakeholders, reviewing CUF’s materiality and outlining the company’s sustainability strategy. The formal consultation of CUF’s stakeholders seeks to gauge their opinions regarding the company’s sustainability performance, reputation and image, sustainability reporting, material topics and how they relate to each other. The results of this consultation process will be used in reviewing the company’s materiality and in redefining its sustainability strategy, to be presented in CUF’s Sustainability Report pertaining to 2016.
20
Materiality
MATERIAL TOPICS
The identification of material topics for CUF, as approved by the Executive Committee, resulted from a process of internal analysis and international benchmarking.
Material Topic
Relevance
Limit
Technology and Innovation
Effective management of technology and innovation through partnerships with research centers and innovation processes, in production processes or in new product creation
Internal External
APPROACH TOWARD DEFINING MATERIALITY
Logistics
Optimization of logistics operations and subsequent improvement of the impact of these activities on the environment
Internal External
Resources and Energy
Energy resources management, by reducing the intensity of its consumption and the subsequent impact on the level of Greenhouse Gas (GHG) emissions
Internal External
Internal External
Benchmark Analysis
Benchmark analysis on the sustainability strategy to 5 peer companies considered references in sustainability management
Sector Trend Analysis
Analysis of key trends, impacts and risks that should be taken into account when defining the material topics for CUF’s sustainability strategy
Environment
Conservation of the environment, taking into account the need to ensure efficiency in production processes and the use of raw materials
Internal Reflection
Analysis of the results of the preceding steps Identification of the material topics for CUF and its relevance
Water
Effective water management due to the high consumption of this resource combined with the forecast of its increasing scarcity
Internal External
Products and Safety
Responsible product management to promote their safe use throughout their life cycle
Internal External
Employees
Efficient recruitment, training programs for skills development and adoption of robust mechanisms for feedback and motivation
Internal External
Community
Preservation of community’s interests in order to contribute to its well-being, in the present and in the future
Internal External
Based on this approach, eight topics were identified and deemed material for CUF’s stakeholders and for the organization at the same time.
In late 2015, CUF started a project involving consultation with stakeholders and reviewing materiality, which will culminate in the outlining of a Materiality Matrix, where the priority will be material topics, considering their relevance to both internal and external stakeholders. 21
Governance GOVERNING BODIES General Assembly Chairman of the Board
Alexandre Cabral Côrte-Real de Albuquerque
Secretary
Manuel José Gouvêa Portella de Herédia
Board of Directors CEO
João Maria Guimarães José de Mello André Cabral Côrte-Real de Albuquerque
Executive Directors
João Jorge Gonçalves Fernandes Fugas Luis Augusto Nesbitt Rebelo da Silva Jaime Urquijo Chacón
Non-Executive Directors
Luís Eduardo Brito Freixial de Goes Pedro Maria Guimarães José de Mello
Statutory Auditor ERNST & YOUNG AUDIT & ASSOCIADOS - SROC, S.A. Alternate Statutory Auditor Paulo Jorge Luís da Silva
22
Functional Organizational Flowchart
Board of Directors
Executive Committee
External Communication
CUF’s Senior Consultants Pool
Legal
Industrial Chemicals
Science and Safety
Commercial
Operations
Corporate and support areas
Nanomaterials
Technical
Operations
Technical
Marketing and Sales
Administrative and Finance
Procurement
Planning, Management Control, Innovation and Sustainability
Human Resources and Internal Communication
Information Systems
23
Sustainability For the purpose of sustainability analysis, three key areas deemed vital – economic, environmental and social - were considered in which the topics identified as material for CUF are included. In the economic domain, Technology and Innovation is analyzed; in the environmental domain, Logistics, Resources and Energy, Environment and Water are considered; and regarding the social domain, Product and Safety, Employees and the Community are examined.
Economic Domain Performance Economic Performance
CUF has been focusing its initiatives on improving efficiency and productivity at various levels, such as production, logistics, financial and human resources.
25
ECONOMIC PERFORMANCE 2013 (M€)
2014 (M€)
2015 (M€)
Economic Value Generated Revenue
Despite the drop in revenues, in nominal terms, CUF experienced growth in business, with regard to both quantities produced – having achieved record high production levels – and quantities sold, noteworthy the increases of 10 kt of aniline and 12 kt of chlorine.
339
357
303
CUF attained an EBITDA margin of 11% for the year 2015 (higher than expected), while showing a 2% improvement relative to 2014.
292
305
253
Salaries and Benefits
15
18
18
Payments to Capital Providers
12
12
11
In 2015, CUF purchased around 98% of its raw materials from domestic suppliers (for this indicator, the amount pertaining to the purchase of benzene is excluded), thus amounting to turnover of around 102 M€. A 4% increase was achieved, compared to 2014.
Payments to the State
0.94
0.30
0.32
Investments in the Community
0.16
0.16
0.15
20
22
21
Economic Value Distributed Operating Costs
Economic Value Retained
In 2015, CUF achieved revenues of around 303 M€, comprising a 15% drop relative to the previous year. This decrease is associated with the business of organic chemicals, where both the sales price and the production cost are strongly correlated with international quotes, most notably the quote of benzene. Thus, there was a simultaneous decrease in turnover and production costs.
26
Technology and Innovation
In the chemical sector, Research, Development and Innovation are currently the major drivers for development and competitiveness, by creating new solutions and improvements to production processes. CUF is no exception, and the company systematically promotes a daily climate of innovation across the entire organization. Innovation at CUF is established on the processes that cover the RDI Management System, as certified under the Portuguese Standard 4457, namely those pertaining to Interface Management, Surveillance Management, Intellectual Property Management, RDI Project Management, Idea Management and Knowledge Management.
27
RDI RESULTS 2013
2014
2015
99
115
82
Ph.Ds
9
7
6
Families of Patents
11
12
12
Ongoing RDI projects
57
76
64
8%
9%
14%
1 M€
4 M€
3 M€
38
33
25
RDI Partnerships
Employees involved in RDI activities RDI investment Publication/Presentations to external bodies
With regard to Interface Management, we point out the RDI partnerships established by CUF and maintained throughout the year 2015, with strategic partners, namely suppliers, universities and companies. We also point out, with equal relevance, the knowledge networks in which CUF is engaged, such as Associação Industrial Portuguesa (AIP), Associação das Indústrias da Petroquímica, Química e Refinação (AIPQR), Associação Portuguesa das Empresas Químicas (APEQ), Conselho Empresarial para o Desenvolvimento Sustentável (BCSD Portugal), COTEC Portugal - Associação Empresarial para a Inovação (COTEC), European Chemical Industry Council (CEFIC), Confederação Empresarial de Portugal (CIP), European Petrochemical Association (EPCA), and Euro Chlor Safety Commitment (Euro Chlor).
The intellectual capital held by CUF is one of the organization’s key differentiation factors. Thus, Intellectual Property is protected through a close management of the patent portfolio and contractual agreements suited to protecting its Intellectual Property assets. In 2015, CUF-QI held 4 patent families and Innovnano 8 patent families. Idea Management is materialized in the Colombo platform, currently one of the company’s key activities while allowing ideas submitted by CUF employees to be further transformed, and thereby contributing toward creating value for the company. Since 2006, 365 ideas were submitted, 108 of which were approved and 81 implemented. These results are materialized as a financial return of around 3.6 M€, as well as countless intangible benefits in terms of safety, environment, employee well-being and productivity, among others. The “Open Day Colombo” event is expected to be held in 2016, where the Executive Committee and Directors will be shown the ideas submitted by employees throughout 2015, who thus become eligible to win the first awards given out under this platform.
28
COLOMBO IDEIAS
Next Steps
Concerning the economic domain, the following goals have been set for 2016: 58
41 25 19
16
10
2013
2014
Total No. of Ideas
• EBITDA margin over 10%; • Maintenance of the NP 4457 certification for CUF-QI’s RDI Management System; • Maintenance of patent portfolio; • Outline the Innovation Roadmap and Ecosystem.
To achieve the established goals for 2016, the following measures are expected to be implemented:
2015
No. of Approved Ideas
In addition, CUF is part of the José de Mello Group’s Innovation Committee, which comprises participation from the innovation areas of the Group’s various companies, namely Brisa, CUF and José de Mello Saúde. Participation on the Innovation Committee fosters a systematic quest for continued improvement by sharing knowledge and the fostering of best practices.
• CUF C&S intends to pursue a strategy based on the development of the current activities for both Industrial Chemicals and Nanomaterials and to establish partnerships with other stakeholders, namely international ones; • CUF-QI intends to find new markets for its products and to maintain its position towards its clients; to maintain a firm attitude in finding new ways to optimize its activities by reducing consumption, and to pursue a growth and internationalization strategy by implementing new projects and establishing possible partnerships; • Innovnano seeks to increase its production by adopting measures leading to improving production efficiency and by consolidating specific business opportunities.
29
Environmental Domain Performance Logistics
Logistics is a material topic for CUF, given the high impact of this area’s effective management on the global geographic placement of its products. In addition, we should point out the high impact of Logistics on the environment, due to the many road and maritime transactions that are conducted. As such, while executing and monitoring its various projects, CUF is committed to continuously improving the planning of its road shipments, namely projects aimed at optimizing road routes by reducing travel time and idle times. The Industrial Chemicals business area monitors legislation in the field of transportation, and conducts audits to its suppliers, in order to ensure compliance with applicable laws. Throughout 2015, CUF-QI conducted two audits to its shipping suppliers, in order to increase the quality of its products and to properly distribute them among its customers. In 2015, CUF-QI continued its Driver Certification project, which, in 2014, led to the certification of 14 new drivers entrusted with hauling inorganic products. Throughout the year 2015, new training initiatives for 2016 were prepared, which are expected to lead to the certification of a greater number drivers.
30
Resources and Energy
The high energy demand required for CUF’s production processes, as well as the large volume of raw materials used for producing the quantities required for meeting customer needs, mirror the materiality of these topics for CUF. Aware of its impact on resources and energy, and through its various projects, CUF is dedicated to continually optimizing its processes aimed at energy-related and operating efficiency. The continuous monitoring of its raw material and energy consumption, as well as of its GHG emissions, comprises one of CUF’s most effective methods for managing this material topic.
31
2013
2014 CAP Sector
2015 ADP Setor
CUF-QI operates in two productive sectors, chlor-alkali (inorganic chemicals) and aniline and derivatives (organic chemicals). Chlor-alkali Production (CAP) saw an increase of around 47 kt relative to 2014. The Aniline and Derivatives Production (ADP) sector rose some 27 kt compared to the previous year. CUF-QI has been gradually increasing its production, having achieved record highs in the use of its installed capacity throughout the year of 2015.
2013 Benzene
2014 Salt
Ammonia
4,092
12,439
46,236
117,249
173,997 4,067
120,703
12,310
547,852
43,952
37,951
605,085
3,837
636,405
11,330
697,985
110,105
670,713
683,731
169,211
CONSUMPTION OF NON-RENEWABLE MATERIALS AT CUF-QI (t)
156,392
PRODUCTION AT CUF-QI (t)
2015 Hydrogen
Sulfuric Acid
In its operations, CUF-QI uses up various non-renewable materials that include benzene, salt, ammonia, hydrogen and sulfuric acid. Use of such materials rose slightly in 2015, due to an overall increase in production.
32
ELECTRICITY AND NATURAL GAS CONSUMPTIONS AT CUF-QI (GJ)
1, 177,221
1, 092,980
976,398
ENERGY INTENSITY AT CUF-QI (GJ/ t of product)
1.28 493,983
1.25
546,753 391,226
1.14
2013
2014
2015 2013
Electricity
2014
2015
Natural Gas
Productive operations carried out by CUF-QI have high energy demands, while using two energy sources for its production: electricity and natural gas. The CAP sector uses mostly electricity, while ADP sector uses natural gas. In 2015, the increase in electricity consumption is consistent with increased production, namely in the CAP sector. The 28% drop in natural gas consumption resulted from increased efficiency of operations in the ADP sector, with a resulting decline in the need for steam and optimized internal steam production, when producing nitric acid.
Energy intensity correlates the total consumption of electricity and natural gas with production, as this indicator recorded an 11% improvement during the period from 2013 to 2015. Along with the electricity and natural gas consumption, in 2015 CUF-QI used up to 6,778 GJ of diesel fuel to operate its fleet, machinery and generators.
33
DIRECT AND INDIRECT GHG EMISSIONS AT CUF-QI (t CO2 eq.) 152,059
155,205
141,092
CARBON INTENSITY AT CUF-QI (t CO2 eq./ t of product)
0.13 0.12
114,051
113,014
111,280
38,008
42,191
29,812
2013
2014
2015
0.10
2013 Direct GHG Emissions
Indirect GHG Emissions
2014
2015
Total GHG Emissions
Direct GHG emissions mostly result from natural gas consumption and from the burning of wastes in the incinerator. Indirect emissions are chiefly the result of electricity consumption, namely with regard to the CAP sector. Regarding total GHG emissions for which CUF-QI is responsible, in 2015 the company recorded 79% indirect emissions and 21% direct emissions, for a 10% drop compared to 2014. This decrease was basically due to continuous improvement of operations with a corresponding decrease in steam use during aniline distillation and an increase in steam production when making nitric acid, resulting in significant natural gas savings.
CUF-QI’s carbon intensity relates total (direct and indirect) GHG emissions to the amount of product. There has been a significant decrease of this indicator, around 23%, since 2013.
34
In 2015, the company continued with the Leak Detection And Repair (LDAR) program (under EN 15446:2008, EPA -453/R-95-017 and EPA 21), begun in 2008, and which is designed to detect and eliminate fugitive emissions of volatile organic compounds. In the year 2015, the results of this program were reflected in a 44% decrease.
OTHER ATMOSPHERIC EMISSIONS AT CUF-QI (t) 57 45 33
9
9 5
4
1
2013
6
7
5
1
2014
NO2
CO
Partículas
6
5
1
2015
SO2
TOC
The quantity of other atmospheric emissions, such as NO2, SO2, particles, CO, TOC and heavy metals is monitored by CUF-QI, thereby ensuring average readings are within the legal limits for these emissions. In 2015, there was an abrupt decline in NO2 emissions. In addition, the reading for CO and SO2 emission also decreased, resulting from a drop in natural gas consumption in 2015.
35
Environment
Because of the sector’s potential risks and impacts on the environment, the Chemical Industry needs to constantly raise awareness to this topic. The topic of the environment, which is intrinsic to this sector of activity, is addressed by CUF as a material topic for its business. CUF’s constant concern with the environment causes the company to promote a systematic control of its impacts, thereby expecting to adopt preventive measures to minimize risks. This way the company will continue to implement measures aimed at rationalizing its consumptions and mitigating the impacts associated with its operations. The industrial effluents from CUF-QI go through a Wastewater Treatment Plant (WWTP) before being discharged into the wastewater network of the Sistema Intermunicipal de Saneamento da Ria de Aveiro (SIMRIA). The increase in the volume of effluent discharges since 2013 has been in accordance with the company’s production increase during that period. However, in 2015 there was only a slight increase in the intensity of effluent discharges, which correlates the total volume discharged with the production.
36
EFFLUENT DISCHARGES AT CUF-QI (m3)
THE EFFLUENT’S QUALITY INDICATORS AT CUF-QI (t)
783,854 732,505
452 431
339 283
282 182
2014
2015
260
182 20
657,828
2013
256
18
2013
20
2014 Sulfates
COD
2015 Nitrates
TSS
INTENSITY OF EFFLUENT DISCHARGES AT CUF-QI (m3/ t product) The indicators regarding the quality of discharged effluents are well below regulated legal emission limits. There was a slight increase in the emission of sulfates, nitrates and total suspended solids (TSS) in effluents. 0.57
2013
0.56
2014
0.57
2015
37
TOTAL WASTE PRODUCED AT CUF-QI (t)
18,967 16,157 2,255
13,902
2013
2,906
17,570 1,808
16,061
15,762
2014
2015
As part of its environmental management strategy, CUF-QI systematically performs various investments and implements specific measures designed to mitigate its environmental impact. During the year 2015, CUF-QI saved 0.44 M€ in environmental operating costs, as a result of decreased waste and subsequently sending wastes for treatment. Also noteworthy is the reduction of wastewater treatment costs in the ADP sector. The amount assigned to environmental investments was nearly double due to the company’s investment in projects dedicated to its operations’ continuous improvement and to the procurement of equipment, aimed at the said operations’ operational/ environmental efficiency. ENVIRONMENTAL COSTS AND INVESTMENTS AT CUF-QI
Total Recovered Waste
Total Generated Waste
Total Waste Placed in Landfill
Compared to 2014, the year 2015 recorded 7% drop in CUF-QI’s waste production, chiefly hazardous waste, due to the optimization of the aniline distillation process. For the same year, 98% of the waste produced was classified as hazardous industrial waste and 88% was enhanced, in energy terms, through CUF’s incinerator.
2013 (M€)
2014 (M€)
2015 (M€)
Operating Costs
2.73
2.72
2.28
Investments
0.33
0.46
0.94
38
WATER CONSUMPTION INTENSITY AT CUF-QI (m3/ t product)
Water
CUF-QI’s production processes are water dependent, which is a major concern because of its increased scarcity worldwide. Therefore, water is one of CUF’s chosen material topics, with various projects undertaken with efficiency in mind, along with specific practices to continually monitor them. 1.45
The catchment of this raw material was wholly done from the Antuã River. The average total water consumption over the three years was around 1.76 million m3, as there was a slight increase in this consumption for 2015, due to increased production.
1.37
1.31
2013
2014
2015
TOTAL WATER CONSUMPTION AT CUF-QI (m3)
1,796,430 1,810,899
The intensity of water consumption reflects the relationship between total consumption and annual production. An improvement of 10% was achieved over the years under review. This improvement reflects a continuous effort toward reducing consumption of this resource through operational optimization.
1,676,532
2013
2014
2015
39
Next Steps
Concerning the environmental domain, the following goals have been set for 2016: • Ensure full compliance with applicable legal requisites; • Reduce electricity consumption compared to the previous year; • Conduct a report on the identification of aqueous streams that are likely to be recovered in the selected area (ADP/CAP). To achieve the established goals for 2016, the following measures are expected to be implemented: • Continue the LDAR program; • Start the process of implementation of the Energy Management System by the EN 50000 standards; • Develop a project to identify the aqueous streams which are likely to be recovered.
40
Social Domain Performance Product and Safety
Along with the chemical sector, CUF firmly invests in processes inherent to the safety of its products. The company employs robust practices to ensure that operations involving production, storage, shipping and product use takes place in accordance with the best safety practices, minimizing workplace risks and environmental accidents. As a reflection of such concern, in 2013 CUF-QI adhered to the guidelines of the Euro Chlor Safety Commitment, which aims to guide the chlor-alkali industry toward a sustainable future.
41
To ensure correct use of its products, the company regularly invests in information disclosure practices, internal audits and visits and/or audits to its customers.
INTERNAL AUDITS AT CUF-QI IN 2015 1 1
2
Industrial Safety
2
Occupational Health and Safety
AUDITS TO CUF-QI CLIENTS
Quality
2 16
Quality, Environment and Safety
125
Quality and Environment 4
Environment
117
95 73
68
61
Environment and Safety 4
MSSASP 2013
CUF-QI’s operations, via its Management Systems, as well as proper compliance with its Policies, are monitored by conducting a strict annual program of internal audits. During the year 2015, CUF-QI conducted 32 Internal Audits to several areas, 6 more than in 2014.
Installations of Chlorine
2014
2015
Installations of Corrosive Liquids
42
After the audits and/or visits, CUF-QI usually prepares reports with photographic records, while drawing particular attention to critical points and proposals for improvement, which are then sent to all audited clients. Additionally, training needs are also identified at customers’ facilities, namely concerning product storage and handling.
TRAINING OF CUF-QI CLIENTS
251 176 135
20
15
9 2014
2013
Training Initiatives
CUF-QI discloses all relevant information concerning its products through safety and technical data sheets. Products are labeled according to national and european legislation. PRODUCT AND SAFETY AT CUF-QI 2013
2014
2015
All Products
12
12
12
Products with related Safety Data Sheets
12
12
12
Products with related Technical Data Sheets
12
12
12
All Clients
230
238
294
Clients with updated Safety Data Sheets
230
238
294
Clients with updated Technical Data Sheets
230
238
294
Total No. of Deliveries (t)
567,471
620,989
696,177
% Compliant Deliveries
99.99%
99.96%
99.81%
2015
Total No. of Trainees
43
CUF considers customer satisfaction to be a key factor for guaranteeing customer loyalty and, thus, for accomplishing the company’s strategic objectives. Every other year, CUF-QI conducts a survey with its customers in order to determine their satisfaction levels with the products and services provided by the company, as well as improvement opportunities. In 2012, 122 CUF-QI customers answered the survey, and in 2014 feedback from 142 was recorded. In both years, the average level for customers’ overall assessment of CUF-QI was 4.17 out of 5. All complaints addressed to CUF, regardless their origin or type, are subject to analysis. Whenever an opportunity for improvement is detected, a set of measures is immediately put to place in order to correct or resolve the situation, while preventing the problem from reoccurring in the future. Throughout 2015, there were 59 customer complaints, 32 more than in 2014. Of the 59 complaints recorded, whose causes have been identified and resolution have been put into practice, 19 pertain to Non-Compliant Product and 18 concern to Weighing Differences, thus accounting for 63% of complaints. In 2015, there were also 2 environment-related complaints from a neighboring company, regarding the smell of chlorine.
44
Employees
CUF believes that the company’s sustainability is directly related to the involvement, performance and satisfaction of all its employees. As such, by means of various initiatives and projects, the organization ensures policies and management systems for Human Resources aligned with world-class best practices. Accordingly, and in order to share the performance of CUF’s activity, its strategy and action plans, CEO João de Mello has held disclosing sessions with all employees since 2012, thereby strengthening CUF’s resolve to get everyone to buy into the company’s strategy. In addition, a major milestone in 2015 involved the launch of CUF’s Code of Ethics, in which the company made known its commitment to acting with ethics and integrity, while respecting the rights of its employees as individuals. On December 31st, 2015, CUF had a workforce of 338 employees, 86% of whom had permanent employment contracts, while 70% of the company’s staff were covered by collective bargaining agreements and/or extension ordinances. CUF’s hiring rate for 2015 was 6%, while the turnover rate was 12%.
45
EMPLOYMENT STRUCTURE BY GENDER
EMPLOYMENT STRUCTURE BY AGE GROUP
339
339
338
17%
18%
20%
83%
82%
2013
339
338
54%
53%
50%
37%
37%
40%
9%
10%
10%
2013
2014
2015
80%
2014
Males
339
2015
Females
Under age 30
Age 30 to 50
Over age 50
46
EMPLOYMENT STRUCTURE BY REGION IN 2015
EMPLOYMENT STRUCTURE BY FUNCTION IN 2015
35%
71% 21%
16%
Males
Females
INI ST STA RATIV E FF ADM
FUN TEC CTION HNI A CIA L NS
RAT ORS
S
NAT ORS RDI
Males
OPE
BARREIRO
S
LOULÉ
AGE R
POMBAL
1%
PER SO CHA NS IN RGE
COIMBRA
3%
9%
6%
TEC HNI CIA N
LISBON
3%
COO
ESTARREJA
9%
MAN
13%
DIR ECT ORS
2%
6%
5%
9%
Females
47
During 2015, taking into account the Seveso II directive, no serious industrial accidents occurred, and there were only 4 work accidents resulting in sick leave. Absenteeism rate for the last three years was 2%. In 2015, the return rate after paternity leave and retention rate were both 100%. CUF invests, in a structured and systematic way, in promoting personal and professional development of its employees, thereby allowing equal opportunities and sustained growth of each professional. The annual training plan reflects this commitment, covering internal and external training initiatives as well as employee participation in seminars, conferences, trade shows and/or symposiums. Both in 2015 and in the previous year, 91% of CUF employees were given training, and the total number of training hours was 6,466 h. In 2015, there was a decreased number of training hours compared to 2014, as some training initiatives typically held annually did not take place, as is the case with English. However, for the year 2016, such training initiatives have already been scheduled.
TOTAL NUMBER OF TRAINING HOURS (h)
10,624
6,465
5,858
2013
2014
2015
In 2015, various internal training initiatives were provided across the board to all CUF employees, such as the Code of Ethics Training Initiative and other training in the field of Quality, Environment and Safety. Throughout 2015, CUF employees also take part in external training initiatives, such as Training in ADR, Training on Legal Aspects Linked to Safety, as well as the Advanced Management Program for Executives at the Universidade Católica Portuguesa/José de Mello Group.
48
Also noteworthy is CUF’s presence at various congresses, such as: • • • •
14th International Conference of the European Ceramic Society; ACHEMA – World Forum and Leading Show for the Process Industries; EPCA 49th Annual Meeting-2015; REACH - Registration, Evaluation, Authorization and restriction of Chemical substances; • ASPEN TECH - solids modeling using aspen plus; among others. Two of CUF’s iconic projects, in the sphere of training, include the Líderes CUF Project and the 4x4 Program. The former was developed through a partnership between CUF and the Faculdade de Psicologia e de Ciências da Educação da Universidade do Porto, aimed at developing leadership at the various levels of the organization, by identifying and implementing leadership strategies suited to the actual work context and to the activity carried out by each leader. The latter aims to bring about a rejuvenation of the company, via a methodology that promotes the suitable integration of young employees in the organization. This methodology provides for a complete, appropriate training plan comprising key topics for CUF, such as: integrated management system, production processes, safety standards, environmental education as well as workplace hygiene and safety, innovation management, among others.
While seeking a closer relationship between the company and its employees, and just like in previous years, the CUF Picnic and Christmas Party were held in 2015, as events where employees and their families had a chance to come together and socialize. In addition, as part of Internal Communication, the Intranet was developed as a privileged means of communication between CUF and its employees. CUF offers its employees a range of benefits that most notably include: • • • • • •
Health Insurance; A maternity kit upon the birth of employees’ children; Presents for employees celebrating their birthday; Tributes to senior employees; Summer Camp for employees’ children; Fundação Amélia de Mello Scholarship Program, a broad initiative of the José de Mello Group, intended to support the development and education of employees’ children by paying part of their university tuition.
The Program Conhecer o Grupo is also another of CUF’s best practices. Developed 14 years ago and implemented across the board for all of the companies of the José de Mello Group, the goal of this program is to acquaint employees with the business reality of the companies involved, while promoting the creation of internal synergies and knowledge sharing.
49
The Collective Labor Agreement establishes the following: • Complement to sickness benefits, thereby guaranteeing the employee’s net monthly salary; • Possibility of additional vacation days up to a maximum of 3 days; • Carnival day and local municipal holiday as holidays. Employee satisfaction is essential to achieving motivation. As such, in July 2014, a study on “CUF Organizational Climate” was conducted, which had a fulfillment rate of 96%, encompassing all of CUF’s companies. The motivation and satisfaction level of employees was gauged through a survey conducted for this purpose. The project identified main strengths and weaknesses of the current organizational climate, and outlined the actions to be carried out in the coming years. In 2015, sessions were held to present the main results of this study to all of CUF’s employees, while group work was conducted to jointly put together initiatives to be implemented over the next few years.
Employee health and safety is another key topic in CUF’s management due to the nature of the business. Corrective and operational control measures stipulated by CUF provide risk assessments and compliance with applicable legal requirements. To ensure the health and safety of CUF’s employees, an Operational Control Plan for Health and Safety is outlined, as well as internal and external Emergency Plans. The internal plan systematizes all procedures to be performed in response to a disaster or a major emergency; the external plan ensures greater agility and operability for the municipality in responding to chemical emergency situations. The operability of these procedures is verified by conducting periodic drills. In 2015, 3 drills were conducted, one of which without prior notice.
CUF invests in the Performance Management of its employees, as this is crucial to the strategy for valuing and empowering them. Since 2013, there has been an increase in the number of employees undergoing performance assessment, 83% for the year 2015. Throughout 2015, the new Performance Management platform for CUF was also completed, thereby making it possible to hasten and integrate this entire process.
50
Local Community
CUF believes in the importance of its role in the communities under its influence, as the company aspires to create a positive impact aimed at contributing toward local development, in both the present and the future. In this context, CUF promotes awareness-raising initiatives geared toward Social Responsibility by encouraging employees to participate in volunteer programs and activities organized within the company. In 2015, among several initiatives, the following are highlighted: • The Volunteer Program, including the entire José de Mello Group, aims to develop socially responsible corporate action and encourage personal and professional growth of its employees. This Program involves six partner organizations to host volunteers: the ATL da Galiza, the Centro Comunitário da Paróquia de Carcavelos, the Obra do Frei Gil, the Associação Coração Amarelo, Junior Achievement Portugal and Movimento de Defesa da Vida. • Volunteers’ Day, an event commemorating the Volunteer Program held throughout the year. In 2015, this event was graced by the presence of over 100 volunteers at Cooperativa para a Educação e Reabilitação de Cidadãos Inadaptados de Cascais (CERCICA), which held various farming-related activities.
51
• The Ser Solidário program, which is also applied across the board to the José de Mello Group, seeks to financially support charities. The institutions are chosen by the employees themselves, who participate in this initiative by donating a monthly amount of their salary. The financial support that resulted from the 2015 edition was delivered to Associação Humanitária de Salreu, Comunidade Vida e Paz, and to APATI - Associação Promotora de Apoio à 3ª Idade, each one receiving financial support in the amount of 4,000 €. • The AMI – Papel por Alimentos Campaign, which CUF has signed on to and which is held in collaboration with Banco Alimentar Contra a Fome. In this initiative, paper collected by CUF for recycling is entirely turned into funding for Banco Alimentar Contra a Fome. For this campaign in the last three years, CUF has collected over 16 t of used paper. Due to social, economic or environmental impact on regional development, transparent communication and engagement with the local community is a priority for CUF. In November 1993, the companies of ECC, and CUF-QI in particular, voluntarily joined the Responsible Care program. This program promotes transparent communication with key stakeholders, allowing the development of policies and actions to minimize and/or mitigate the negative impacts of industry on society. In response to the commitment made upon adhering to the Responsible Care program, the companies of Estarreja Chemical Complex formed a community panel named PACOPAR. PACOPAR’s mission is to continuously and sustainably improve the quality of life in Estarreja, bringing together synergies between the various members involved. In 2015, among several initiatives, the following
are highlighted: • PACOPAR supported 16 community projects in the fields of education, social support and civil defense, by contributing around 40,000 €; • CUF headed two projects for creating two free apps available for every operating system. The first one, “QUIZ4YOU PACOPAR,” with mini-games for all ages, and the second, “Trekking BioRia,” providing eight foot paths in Salreu and a regional flora and fauna guide; • CUF and the other companies of the ECC hosted the “Open Doors” initiative, geared to the Municipality’s institutional representatives. During visits to the manufacturing facilities, the 30 guests observed the existing measures as part of personal safety and environmental protection, as well as their systems and resources for dealing with emergencies; • As a communication policy, PACOPAR publishes, in its annual magazine and website, several interesting topics for the local community and for its sector of operations, as well as various indicators that reveal the performance of these industries in the spheres of Safety and Environment. In addition, CUF promotes several short- or long-term academic and vocational internships with various organizations such as Universities, Instituto de Emprego e Formação Profissional (IEFP) or Secondary Schools. Throughout 2015, 49 internships were held, 6 more than in 2014.
52
Next Steps
Concerning the social domain, the following goals have been set for 2016: • • • • • •
Build an action plan for CUF to become recognized as one of the top industrial companies to work for in Portugal by late 2020; Maintain compliance with the “0 serious industrial accidents” target; Promoting its management staff’s leadership skills; Proceed with the rejuvenation plan in the area of operations; Streamline CUF’s internal communication; Continue to encourage employee participation in initiatives such as the “Volunteer Program” and “Ser Solidário.”
To achieve the established goals for 2016, the following measures are expected to be implemented: • To achieve the established goals for 2016, the following measures are expected to be implemented: • Carrying out the Annual Training Plan; • Continuing the Líderes CUF Program; • Continuing the 4X4 Program; • Consolidating the Intranet with all of its employees.
53
GRI Index GENERAL STANDARD CONTENTS Indicator
Location
External Verification
Page 5-6
Yes
Page 5
Yes
Page 12-14
Yes
Page 12
Yes
Page 12-13
Yes
Strategy and Analysis G4 - 1
CEO’s statement on the relevance of sustainability to the organization and its sustainability strategy
Organizational Profile G4 - 3
Organization name
G4 - 4
Primary brands, products, and services
G4 - 5
Organization’s headquarters location
G4 - 6
Number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics
G4 - 7
Nature of ownership and legal form
Page 13
Yes
G4 - 8
Served markets
Page 14
Yes
Page 12-14; 26; 46-47 Annual Financial Statement 2013, 2014 and 2015
Yes
Pág. 45-47
Yes
G4 - 9
Organization scale
G4 - 10
Total number of employees
G4 - 11
Percentage of total employees covered by collective bargaining agreements
Pág. 45
Yes
G4 - 12
Organization’s value chain
Pág. 17
Yes
G4 - 13
Significant changes during the reporting period regarding the organization’s size, structure, ownership, or its value chain
Pág.13
Yes
55
GENERAL STANDARD CONTENTS Location
External Verification
CUF has an active approach to managing financial, operational, patrimonial, environmental and health and safety risks based on the precautionary principle. Through this principle, the company seeks to minimize potential adverse effects associated with these risks Annual Financial Statement 2013, 2014 and 2015
Yes
Page 18; 35; 41; 51-52
Yes
Page 28
Yes
Page 8; 13
Yes
Indicator Organizational Profile G4 - 14
Approach to the precautionary principle
G4 - 15
Economic, environmental and social initiatives and principles to which the organization subscribes
G4 - 16
Memberships of associations and national or international advocacy organizations
Identified Material Aspects and Boundaries G4 - 17
List of all entities included in the organization’s consolidated financial statements
G4 - 18
Process adopted for defining the report content and the material aspect boundaries
Page 21
Yes
G4 - 19
Material aspects identified in the process for defining report content
Page 21
Yes
G4 - 20
The boundary of each material aspect within the organization
Page 21
Yes
G4 - 21
The boundary of each material aspect outside the organization
Page 21
G4 - 22
Restatements of information provided in previous reports, and the reasons for such restatements
G4 - 23
Significant changes from periods covered by previous reports in the scope and material aspect boundaries
Slight restatements were made to the report’s content relative to the previous report, in order to adapt the report to the company’s current reality
Yes
N/A
Yes
Stakeholder Engagement G4 - 24
List of stakeholder groups engaged by the organization
Page 18
Yes
G4 - 25
Basis for identification and selection of stakeholders
Page 18
Yes
G4 - 26
Organization’s approach to stakeholder engagement, including frequency of engagement by type and by group
Page 18-20
Yes
G4 - 27
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has dealt with those key topics and concerns
Page 19-20
Yes
56
GENERAL STANDARD CONTENTS Indicator
Location
External Verification
Report Profile G4 - 28
Reporting period
Page 8
Yes
G4 - 29
Date of most recent previous report
Page 8
Yes
G4 - 30
Reporting cycle
CUF’s Sustainability Report will be published on an annual basis
Yes
G4 - 31
Contact point for questions regarding the report or its contents
Page 9
Yes
G4 - 32
Organization “in accordance” option and GRI Content Index
Page 8
Yes
G4 - 33
Organization’s policy and current practices with regard to seeking external assurance for the report
Page 9
Yes
Page 22-23
Yes
Page 11; 15-16
Yes
Page 15-16; 27; 29-31; 36; 39-41; 45; 51; 53
Yes
Governance G4 - 34
The organization’s governance structure, including committees under the highest governance body
Ethics and Integrity G4 - 56
Organization’s values, principles, standards and norms of behavior
Forms of Management G4 - DMA
57
SPECIFIC STANDARD CONTENTS Location
External Verification
Direct economic value generated and distributed
Page 26
Yes
Proportion of spending with local suppliers
Page 26
Yes
Total materials used, by weight
Page 32
Yes
G4 - EN3
Energy consumption within the organization
Page 33
Yes
G4 - EN5
Energy Intensity
Page 33
Yes
Total water consumption, by source
Page 39
Yes
G4 - EN15
Direct Greenhouse Gas (GHG) Emissions (Scope 1)
Page 34
Yes
G4 - EN16
Indirect Greenhouse Gas (GHG) Emissions (Scope 2)
Page 34
Yes
G4 - EN18
Carbon Intensity
Page 34
Yes
G4 - EN21
NOX, SOX and other significant air emissions
Page 35
Yes
G4 - EN22
Water discharges, by quality and destination
Page 37
Yes
G4 - EN23
Total weight of generated waste, by type and destination
Page 38
Yes
Indicator Economic Performance Indicators Economic Performance G4 - EC1
Procurement Practices G4 - EC9
Environmental Performance Indicators Materials G4 - EN1
Energy
Water G4 - EN8
Emissions
Effluents and Waste
58
SPECIFIC STANDARD CONTENTS Indicator
Location
External Verification
CUF has not paid any significant penalty between 2013 and 2015, in this regard
Yes
Page 38
Yes
Page 45 Attachments - Human Resources (page 65-67)
Yes
Page 48 Attachments - Human Resources (page 70)
Yes
Environmental Performance Indicators Compliance G4 - EN29
Monetary value of fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
Global G4 - EN31
Total environmental protection expenditures and investments, by type
Social Performance Indicators - Labor Practices and Decent Work Employment G4 - LA1
Total number and rates of new employee hires and employee turnover by age group, gender, and region
G4 - LA3
Return to work and retention rates after paternity leave, by gender
Occupational Health and Safety G4 - LA5
Percentage of total workforce represented in formal health and safety committees
Attachments - Human Resources (page 64)
Yes
G4 - LA6
Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by gender and by region
Page 48 Attachments - Human Resources (page 71)
Yes
Training and Education G4 - LA9
Average hours of training, per employee, by gender and by employee category
Page 48 Attachments - Human Resources (page 67-68)
Yes
G4 - LA10
Skills management and lifelong learning and occupational career management
Page 48 Attachments - Human Resources (page 67-68)
Yes
G4 - LA11
Percentage of employees receiving regular performance and career development reviews, by gender and by employee category
Page 50 Attachments - Human Resources (page 69)
Yes
59
SPECIFIC STANDARD CONTENTS Indicator
Location
External Verification
Attachments - Human Resources (page 62-64)
Yes
CUF had no training in Human Rights policies between 2013 and 2015
Yes
CUF has not paid any significant penalty between 2013 and 2015, in this regard
Yes
Page 43
Yes
Diversity and Equal Opportunity G4 - LA12
Composition of the organization’s governing bodies, by gender, employee category and age group
Social Performance Indicators - Human Rights Investments G4 - HR2
Total hours of training on Human Rights policies
Social Performance Indicators - Society Compliance G4 - SO8
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations
Social Performance Indicators - Product Responsibility Customer Health and Safety G4 - PR1
Poducts and services for which health and safety impacts are assessed for improvement
Product and Service Labeling G4 - PR3
Type of information on product and service labeling required by the organization for its products and services
Page 43
Yes
G4 - PR5
Customer satisfaction assessment
Page 44
Yes
CUF has not paid any significant penalty between 2013 and 2015, in this regard
Yes
Compliance G4 - PR9
Monetary value of significant fines concerning the provision and use of products and services
60
Attachments HUMAN RESOURCES Number of Employees
By gender
By age group
By region
By employee category
2013
2014
2015
Total No. of Employees
339
339
338
Total No. of Full-time Employees
339
339
338
Male
281
278
272
Female
58
61
66
Under age 30
31
33
35
Ages 30 to 50
124
125
134
Over age 50
184
181
169
Estarreja
231
240
241
Lisbon
42
42
44
Loulé
14
14
11
Pombal
14
14
11
Barreiro
14
2
2
Coimbra
24
27
29
Directors
6
7
7
Managers
14
14
18
Coordinators
22
22
20
Technicians
63
63
70
Persons in charge
19
19
20
130
128
118
Functional Technicians
52
58
55
Administrative Staff
33
28
30
Operators
62
HUMAN RESOURCES Percentage of Employees By gender
By age group
By region
By employee category
2013
2014
2015
Male
83%
82%
80%
Female
17%
18%
20%
Under age 30
9%
10%
10%
Ages 30 to 50
37%
37%
40%
Over age 50
54%
53%
50%
Estarreja
68%
71%
71%
Lisbon
12%
12%
13%
Loulé
4%
4%
3%
Pombal
4%
4%
3%
Barreiro
4%
1%
1%
Coimbra
7%
8%
9%
Directors
2%
2%
2%
Managers
4%
4%
5%
Coordinators
6%
6%
6%
19%
19%
21%
6%
6%
6%
Operators
38%
38%
35%
Functional Technicians
15%
17%
16%
Administrative Staff
10%
8%
9%
Technicians Persons in charge
63
HUMAN RESOURCES Governing Bodies By gender
By age group
By gender
By age group
2013
2014
2015
Male
6
7
7
Female
-
-
-
Under age 30
-
-
-
Ages 30 to 50
2
3
3
Over age 50
4
4
4
Percentage of Governing Bodies
2013
2014
2015
Male
100%
100%
100%
Female
-
-
-
Under age 30
-
-
-
Ages 30 to 50
33%
43%
43%
Over age 50
67%
57%
57%
Employees covered by Formal Health and Safety Committees
2013
2014
2015
Percentage of employees covered by Formal Health and Safety Committees*
100%
100%
100%
*CUF-QI
64
HUMAN RESOURCES Employee Exit
By gender
By age group
By region
2013
2014
2015
Total No. of Employee Exits
12
20
20
Male
11
18
17
Female
1
2
3
Under age 30
2
-
3
Ages 30 to 50
6
9
4
Over age 50
4
11
13
Estarreja
2
5
9
Lisbon
4
1
2
Loulé
5
1
3
Pombal
-
-
3
Barreiro
-
12
-
Coimbra
1
1
3
2013
2014
2015
10
20
19
Male
6
15
11
Female
4
5
8
Under age 30
5
11
9
Ages 30 to 50
5
9
8
Over age 50
-
-
2
Estarreja
-
13
10
Lisbon
3
2
4
Loulé
-
1
-
Pombal
-
-
-
Barreiro
-
-
-
Coimbra
7
4
5
Employee Hires Total No. of Employee Hires By gender
By age group
By region
65
HUMAN RESOURCES Employee Exit Rate
By gender
By age group
By region
2013
2014
2015
Total Employee Exit Rate
4%
6%
6%
Male
4%
6%
6%
Female
2%
3%
5%
Under age 30
6%
-
9%
Ages 30 to 50
5%
7%
3%
Over age 50
2%
6%
7%
Estarreja
1%
2%
4%
Lisbon
9%
2%
5%
30%
7%
24%
Pombal
-
-
24%
Barreiro
-
150%
-
Coimbra
5%
4%
11%
2013
2014
2015
Total Rate of Employee Hires
3%
6%
6%
Male
2%
5%
4%
Female
7%
8%
13%
Under age 30
15%
34%
26%
Ages 30 to 50
4%
7%
6%
Over age 50
-
-
1%
Estarreja
-
6%
4%
7%
5%
9%
Loulé
-
7%
-
Pombal
-
-
-
Barreiro
-
-
-
Coimbra
35%
16%
18%
Loulé
Rate of Employee Hires
By gender
By age group
Lisbon
By region
66
HUMAN RESOURCES Turnover Rate
By gender
By age group
By region
By gender
2013
2014
2015
Total Turnover Rate
6%
12%
12%
Male
6%
12%
10%
Female
9%
12%
17%
Under age 30
22%
34%
35%
Ages 30 to 50
9%
14%
9%
Over age 50
2%
6%
9%
Estarreja
1%
8%
8%
Lisbon
16%
7%
14%
Loulé
30%
14%
24%
Pombal
-
-
24%
Barreiro
-
150%
-
Coimbra
40%
20%
29%
Training Hours
2013
2014
2015
Total No. of Training Hours
5.858
10.625
6.466
Male
4.986
8.289
4.802
872
2.336
1.664
Directors
-
31
46
Managers
62
213
395
745
1.164
410
2.145
2.078
1.659
218
835
266
1.664
3.495
3.019
Functional Technicians
670
1.781
564
Administrative Staff
354
1.028
108
Female
Coordinators
By employee category
Technicians Persons in charge Operators
67
HUMAN RESOURCES Employees Having Received Training
By gender
By employee category
2013
2014
2015
Total No. of Employees Having Received Training
233
309
308
Male
205
253
245
28
56
63
Directors
-
3
3
Managers
5
13
18
Coordinators
18
21
18
Technicians
35
59
65
Persons in charge
15
19
19
Operators
94
117
107
Functional Technicians
49
55
52
Administrative Staff
17
21
26
2013
2014
2015
Total Percentage of Employees Having Received Training
69%
91%
91%
Male
73%
91%
90%
Female
48%
92%
95%
Directors
-
43%
43%
Managers
36%
93%
100%
Coordinators
82%
95%
90%
Technicians
56%
94%
93%
Persons in charge
79%
100%
95%
Operators
72%
91%
91%
Functional Technicians
94%
95%
95%
Administrative Staff
52%
75%
87%
Female
Percentage of Employees Having Received Training
By gender
By employee category
68
HUMAN RESOURCES Employees Having Received Performance Evaluation
By gender
By employee category
2013
2014
2015
Total No. of Employees Having Received Performance Evaluation
276
279
281
Male
224
229
228
52
50
53
Directors
1
1
5
Managers
11
11
18
Coordinators
22
22
19
Technicians
54
51
52
Persons in charge
15
16
15
Operators
95
102
98
Functional Technicians
49
51
50
Administrative Staff
29
25
24
2013
2014
2015
Total Percentage of Employees Having Received Performance Evaluation
81%
82%
83%
Male
80%
82%
84%
Female
90%
82%
80%
Directors
17%
14%
71%
Managers
79%
79%
100%
100%
100%
95%
Technicians
86%
81%
74%
Persons in charge
79%
84%
75%
Operators
73%
80%
83%
Functional Technicians
94%
88%
91%
Administrative Staff
88%
89%
80%
Female
Percentage of Employees Having Received Performance Evaluation
By gender
Coordinators
By employee category
69
HUMAN RESOURCES Employees entitled to Paternity Leave By gender
2013
2014
2015
Male
5
5
6
Female
2
3
2
2013
2014
2015
Male
5
5
6
Female
2
3
2
2013
2014
2015
Male
5
5
6
Female
2
3
2
Return Rate
2013
2014
2015
Male
100%
100%
100%
Female
100%
100%
100%
Retention Rate
2013
2014
2015
Male
250%
100%
100%
75%
50%
100%
Employees who took Paternity Leave By gender
Employees who have returned following Paternity Leave By gender
By gender
By gender
Female
70
HUMAN RESOURCES Number of work-related Deaths
2013
2014
2015
-
-
-
2013
2014
2015
Total No. of Occupational Accidents entailing sick leave
6
3
4
Male
6
3
4
Female
-
-
-
Number of Lost Days due to Occupational Accidents
2013
2014
2015
Total No. of Lost Days due to Occupational Accidents
236
39
63
Male
236
39
63
-
-
-
Number of Hours Not Worked*
2013
2014
2015
Total No. of Hours Not Worked
26.136
24.888
27.347
Male
24.683
23.581
26.163
1.453
1.307
1.184
2013
2014
2015
Total Rate of Hours Not Worked
4%
4%
4%
Male
4%
4%
5%
Female
1%
1%
1%
2013
2014
2015
Total Absentee Rate
2%
2%
2%
Male
2%
2%
3%
Female
2%
3%
1%
Total No. of work-related Deaths
Number of Occupational Accidents entailing sick leave
By gender
By gender
By gender
Female
Female *Excluded from these statistics: Absenteeism due to Paternity/Marriage leave, Bereavement or Study Leave
Rate of Hours Not Worked*
By gender
*Excluded from these statistics: Absenteeism due to Paternity/Marriage leave, Bereavement or Study Leave
Absentee Rate
By gender
71
Methodological Notes Average Headcount =
Nº of Employees in the report year +Nº Employees in the previous year 2 Nº of Employees Exit Employees Exit Rate
Nº of Employees Hires Employees Hires Rate
Nº of Employee Exits +Nº of Employee Hires Average Headcount
Employees who have returned after Paternity Leave
Return Rate =
Retention Rate =
Employees who planned to return after Paternity Leave
Employees who remained on the job after 12 months of return Employees who remained on the job after Paternity Leave in the previous year
Rate of Not Worked Hours =
Absenteeism Rate =
(1) Excluded from these statistics Absenteeism due to Paternity/Marriage leave, Bereavement or Study leave
Rate of Not Worked Hours(1) Nº of Workable Hours
Nº of Hours of Absences to work Nº of Workable Hours
72
Abbreviations and Acronyms ADP
Aniline and Derivatives Production Process
AIP AIPQR
Associação Industrial Portuguesa
AP APEQ
Innovnano LDAR
Innovnano - Materiais Avançados, S.A. Diphenylmethane Diisocyanate
AP - Amoníaco de Portugal, S.A.
MDI MSSASP
Associação Portuguesa das Empresas Químicas
NGO
Non-Governmental Organizations
Aquatro
Aquatro - Projectos e Engenharia, S.A.
NO2
Nitrogen Dioxide
BCSD Portugal
Conselho Empresarial para o Desenvolvimento Sustentável
Nutriquim - Produtos Químicos, S.A.
CAP CEFIC
Chlorine-Alkali Production Process
Nutriquim PACOPAR Quimigest
CERCICA
Cooperativa para a Educação e Reabilitação de Cidadãos Inadaptados de Cascais
RDI
Research, Development and Innovation
Renoeste SGPAMAG SIMRIA
Renoeste - Valorização de Recursos Naturais, S.A.
SO2
Sulfur Dioxide
Associação das Indústrias da Petroquímica, Química e Refinação
European Chemical Industry Council
Leak Detection And Repair Management System of Serious Accident Safety and Prevention
Painel Consultivo Comunitário do Programa Actuação Responsável Quimigest - Sociedade Química de Prestação de Serviços, S.A.
CIP
Confederação Empresarial de Portugal
CO
Carbon Monoxide
CO2 CO2 eq.
Carbon Dioxide Carbon Dioxide equivalent
COD
TOC
Total Organic Carbon
Chemical Oxygen Demand
Total Suspended Solids
COTEC
COTEC Portugal - Associação Empresarial para a Inovação
CUF C&S CUF-QI EBITDA
TSS WWTP
CUF - Consultadoria e Serviços, S.A.
ECC
Estarreja Chemical Complex
EDS Elnosa
Emulsion Detonation Synthesis
EPCA
European Petrochemical Association
Euro Chlor GHG GRI
Euro Chlor Safety Commitment
IEFP
Instituto do Emprego e Formação Profissional
SGPAMAG - Sociedade de Granéis, S.A. Sistema Intermunicipal de Saneamento da Ria de Aveiro
Wastewater Treatment Plant
CUF - Químicos Industriais, S.A. Earnings Before Interest, Taxes, Depreciation, and Amortization
Electroquímica del Noroeste, S.A.
Greenhouse Gases Global Reporting Initiative
73
To the board of Directors of
CUF – Consultadoria e Serviços, S.A.
Independent assurance report of the Sustainability Report 2015 (Free translation from the original in Portuguese) Introduction In accordance with the request of the board of Directors of CUF – Consultadoria e Serviços, S.A. (CUF), we performed an independent assurance of the ‘Sustainability Report 2015’ (Report). Independent assurance was performed according to instructions and criteria established by CUF, as referred in the Report, and according to the principles and extent described in the Scope below. Responsibility CUF’s Board of Directors is responsible for all the information presented in the Report, as well as for the assessment criteria and for the systems and processes supporting information collection, consolidation, validation and reporting. Our responsibility is to conclude on the adequacy of the information, based upon our independent assurance standards and agreed reference terms. We do not assume any responsibility over any purpose, people or organization. Scope Our procedures were planned and executed using the International Standard on Assurance Engagements 3000 (ISAE 3000) and having the Global Reporting Initiative, version 4 (GRI4) and AA1000APS Accountability Principles Standard 2008 as reference, in order to obtain a moderate level of assurance on both the performance information reported and the underlying processes and systems. The extent of our procedures, consisting of inquiries, analytical tests and some substantive work, was less significant than in a full audit. Therefore, the level of assurance provided is also lower. It was also considered the AA1000 Assurance Standard (2008), type 2 engagement, for a moderate level of assurance. For the GRI4 and AA1000 AccountAbility Principles Standard (2008), our work consisted on the verification of the management’s self-declaration on the application of the GRI4 guidelines and level of adherence to the AA1000APS principles. The following procedures were performed: (i)
Inquiries to management and senior officials responsible for areas under analysis, with the purpose of understanding how the information system is structured and their awareness of issues included in the Report;
(ii) Identify the existence of internal management procedures leading to the implementation of economic, environmental and social policies; (iii) Testing the efficiency of process and systems in place for collection, consolidation, validation and reporting of the performance information previously mentioned;
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. Sede: Palácio Sottomayor, Rua Sousa Martins, 1 - 3º, 1069-316 Lisboa, Portugal Tel +351 213 599 000, Fax +351 213 599 999, www.pwc.com/pt Matriculada na Conservatória do Registo Comercial sob o NUPC 506 628 752, Capital Social Euros 314.000 PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. pertence à rede de entidades que são membros da PricewaterhouseCoopers International Limited, cada uma das quais é uma entidade legal autónoma e independente. Inscrita na lista das Sociedades de Revisores Oficiais de Contas sob o nº 183 e na Comissão do Mercado de Valores Mobiliários sob o nº 20161485
(iv) Confirming, through visits to sites, that operational units follow the instructions on collection, consolidation, validation and reporting of performance indicators; (v) Executing substantive procedures, on a sampling basis, in order to collect sufficient evidence to validate reported information; (vi) Comparing financial and economic data with those in the Annual Report 2015, audited by the external financial auditor, to assess on the external validation of the information reported; (vii) Analyse of the process for defining the materiality of the issues included in the report, according to methodology described. (viii)Assess the level of adherence to the principles of inclusivity, materiality and responsiveness set by AA1000APS, by analysing the contents of the report and internal documents; (ix) Verify the existence of data and information required to comply with the G4 version, option ‘In Accordance – Core’. Confidentiality and Independence Internally, PwC SROC is governed by ethical and deontological rules of confidentiality and independence quite rigid. Thus, in all aspects of our collaboration, the Firm and its employees maintain strict confidentiality of information obtained in the performance of their duties and complete independence regarding the interests of CUF. Additionally, we develop our work in line with standard ISAE 3000 independence requirements, including compliance with PwC's independence policies and code of ethics of the International Ethics Standards Board of Accountants (IESBA). Conclusions Based on our work described in this report, nothing has come to our attention that causes us to believe that internal control related to the collection, consolidation, validation and reporting of the performance information referred above is not effective, in all material respects. Based on our examination of the Report and Guidelines GRI, with the assumptions included in the scope, we conclude that the Report includes the data and information required to comply with the G4 version, option ‘In Accordance – Core’. Comments/Remarks According to AA1000AS (2008) standard, we present the main observations regarding the adherence of CUF to the principles of AA1000APS (2008) standard: Principle of inclusivity: CUF publicly assume its responsibilities to its stakeholders, by subscribing the three principles of AA1000APS standard, and the commitment to proceed with its sustainability strategy and value creation for its stakeholders. It is recommended to ensure periodic review of the identification and prioritization of stakeholders, especially in the case of significant changes in the Company or in the industry, as well as disclose in the next sustainability reporting, the main results of the latest stakeholder consultation carried out (2016). Principle of materiality: CUF identified in 2014 the material issues, as a result of an internal stakeholder consultation process, benchmarking and international trends analysis. CUF recently held a review of material issues. It is recommended to disclose, in the next sustainability reporting, the main results of the latest stakeholder consultation carried out, as well as the review of the material issues of CUF and the new sustainability commitments.
CUF – Consultadoria e Serviços, S.A.
PwC
2
Principle of responsiveness: CUF has a set of mechanisms for stakeholder consultation, aimed at understanding and addressing the expectations of its stakeholders. It is recommended to ensure that there are solid mechanisms of communication and engagement for all stakeholders, as well as ensure that the expectations and concerns of all stakeholders are addressed properly, through an integrated mechanism, e.g. sustainability report or sustainability website.
Lisbon, June 30th 2016 PricewaterhouseCoopers & Associados, S.R.O.C., Lda. Represented by
António Joaquim Brochado Correia, ROC
CUF – Consultadoria e Serviços, S.A.
PwC
3