A Message from Our President GE Brazil is pleased to present this Sustainability Profile in which we articulate our commitment to the sustainable development of Brazil, and the sustainable management of our business. This report, undertook for the first time in Brazil, provides a broad vision of the initiatives implemented by the company throughout the year and of the impacts of the company’s decisions and operations in the country. The metrics contained in this document relate to the period from January 1st to December 31st, 2012. We are committed to solving problems for our customers and our communities, to finding solutions that benefit the planet, its people and the economy. This commitment is part of our business strategy as well as of our culture. This is how we define Citizenship at GE: a full-time commitment to improving our social, governance, environmental and economic sustainability efforts.
Brazil has experienced “rapid economic change in the
GE started operating in Brazil in 1919 and has diversified its business over the last 93 years. Since then, Brazil has become GE’s third largest market in the world. Our company is dedicated to technology, research, and innovation to address Brazil’s challenges in the energy, water, oil and gas, health and transportation infrastructures. Building, powering, moving, curing: this is how GE works, whether it is through responsible business, GE Foundation’ social investment, or GE Volunteers’ activities in the communities where we operate.
recent years, which has led to new business opportunities but also to significant sustainability challenges.
Reinaldo Garcia Presidente & CEO Latin America 2
Brazil has experienced rapid economic change in recent years, which has led to new business opportunities but also to significant sustainability challenges. The middle class is rising and today represents 55 percent of the population. The country is preparing to host the World Cup and the Olympic Games, therefore demanding massive investments in infrastructure. Governments are seeking to promote economic growth and development through local content production requirements for international companies.
Innovation and technology development require talent, and GE is deeply committed to developing people. We believe our contribution is all the more important as the country is facing a shortage of qualified labor, essential to sustain economic growth and improve Brazil’s competitiveness. We believe that education systems must align with the changing requirements of the economy, and that employers and educational institutions must collaborate over skills development. Our contributions range from our partnerships with technical schools like SENAI, GE Foundation and GE Volunteers’ long-standing collaboration with Junior Achievement, to GE’s leadership programs and involvement in government programs such as Sciences Without Borders.
Our business strategy responds to these local priorities. Publishing this Sustainability Profile is part of this undertaking and of our willing to demonstrate our dedication to Brazil’s sustainable development. This publication is focused on three areas: People, Planet and Economy. Across these sections, we try to illustrate our belief that technology and talent are key elements to meeting Brazil’s sustainability objectives.
Looking forward, we recognize there is much work to do, and we will continue our sustainability efforts as an integral component of GE’s business growth in Brazil.
I hope you enjoy the reading.
GE is building its fifth Global Research Center (GRC) in Rio de Janeiro. Expected to employ 400 researchers and engineers at full capacity, we already have 80 researchers working on developing technological solutions in the oil and gas, bioenergy, mining, rail, aviation and healthcare industries. In parallel, our businesses continue to expand our ecomagination and healthymagination portfolios, thereby enabling our customers and communities to be more productive and resilient. Ecomagination is based on the idea that efficiency can help customers, transform industries and protect the environment. One example is GE’s leading effort in developing Brazil’s wind power industry, as we celebrated the installation of our 300th turbine in the country in 2012. Healthymagination is about providing better health for more people by focusing on improving quality, expanding access and increasing affordability of care. As part of this strategy, GE acquired XPRO, a Brazilian medical device manufacturer focused on providing affordable interventional imaging solutions to new users thanks to a unique mix of imaging technology and low-cost mechanical solutions.
Presidente & CEO Latin America
GE in Brazil GE started doing business in Brazil in 1919, making it one of the first multinational companies to arrive in the country. Over the past 93 years, we have diversified our operating areas and are now grounded in technology, research, and innovation. Today, we manufacture locomotives, equipment and solutions for water treatment and reuse, healthcare equipment. We also develop and provide power generators, solutions to oil & gas industry, aviation equipment and overhaul services, lighting solutions, and financial services.
For more than 130 years, GE has put imagination into practice by solving some of the world’s toughest challenges. Inventor of the electric light bulb and at least a thousand other innovations, Thomas Edison founded the Electric Light Company in 1879—the first step towards creating GE. Today, GE is an advanced technology, services, and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, water, health, and transportation infrastructures, GE operates in more than 160 countries and employs about 305,000 people globally. Building, powering, moving, and curing: this is how GE Works.
With nearly 8,800 employees, 14 industrial facilities and service shops, and a Global Research Center, Brazil represents GE’s largest market in Latin America and third largest in the world.
GE sites in Brazil
GE Aviation is a world-leading provider of jet engines and systems for aircrafts, with an extensive global service network to support its customers worldwide. In Brazil, GE Aviation provides jet engines and repair services. Our repair shop, GE Celma, is located in Petropolis, and currently repairs approximately 330 engines annually. By 2014, the shop will have the capacity to repair 500 engines annually. GE Celma has been providing maintenance services to jet engines from around the globe for over 60 years and has already repaired over 8,000 engines. GE Aviation also provides aero-derivative engines for marine applications.
GE was born from the invention of the first affordable, incandescent lamp in the world. More than a century later, GE has revolutionized the industry with the development of new technologies, such as fluorescent and Light Emitting Diode (LED) technologies. LED lighting solutions are more energy efficient and entail lower cost of operation. In Brazil, GE Lighting delivers products under the trademark of Smart Energy, in addition to the registered trademarks: Evolve, GTx, Immersion, Infusion, Lumination, and Tetra. GE Lighting has also provided lighting for some of Brazil’s most popular sites, including: Christ the Redeemer, Maracanã Stadium, and Lagoa Rodrigo de Freitas.
GE Energy Management
GE Energy Management develops solutions for the delivery, management, conversion, and optimization of electrical power for energy production and distribution companies in Brazil and worldwide. GE Energy Management is divided into three business units: GE Digital Energy, GE Power Conversion, and GE Industrial Solutions.
GE is one of the largest appliance manufacturers in the world. In Brazil, GE Appliances has established a joint venture with Mabe.
GE Power & Water GE Power & Water provides power generation and water process solutions, including renewable sources, such as wind and solar, biogas and alternative fuels, coal, oil, natural gas, and nuclear energy. A world leader in systems, processes, and water and wastewater treatment. In Brazil, GE Power & Water develops and produces reverse osmosis equipment and water treatment chemical solutions in Sorocaba (SP).
GE Healthcare GE Healthcare provides medical technologies and services. In Brazil, GE Healthcare provides healthcare equipment to hospitals and clinics across the country. In July 2010, GE Healthcare opened its first factory in South America in the municipality of Contagem (MG). GE Healthcare produces analog and digital mammography, analog, and digital X-ray, CT scans, magnetic resonance, and PET/CT equipment.
GE Oil & Gas GE Oil & Gas is a world leader in equipment and advanced technology services for all segments of oil and gas drilling and production, Liquefied Natural Gas (LNG), pipelines and storage power generation, refining, and petrochemicals. In Brazil, GE Oil & Gas manufactures and repairs system wellheads and Christmas trees in the industrial facilities of Jandira (SP) and Macaé (RJ). In Niterói (RJ), GE Oil & Gas produces flexible pipes for oil and natural gas. In Campinas (SP), GE Oil & Gas manufactures inspection equipment and controls, and has built the first Customer Application Center in Latin America. In Bonsucesso (RJ), GE Oil & Gas manufactures pumps and fuel tank gauging systems.
GE Transportation GE Transportation is a global technology leader and supplier to the railroad, marine, drilling, wind, and mining industries. GE Transportation provides freight and passenger locomotives, railway signaling and communications systems, information technology solutions, marine engines, motorized drive systems for mining trucks and drills. In Brazil, GE Transportation’s first plant was founded in 1962 in Campinas (SP), where 1,100 locomotives have been manufactured. In 2012, GE Transportation celebrated 50 years in Brazil, with a total of 1,300 locomotives produced in the country. 4
Overview Regulation. The environment has become a
Despite these achievements, and one of the biggest reductions of social inequality in recent years, wealth remains unequally distributed and Brazil still ranks among the nations with the highest Gini coefficient index of inequality. On the other hand, despite reaching universal coverage in primary education, quality still needs to be improved.
public-policy priority, particularly as it relates to infrastructure development. We provide environmental technologies and invest in shaping and supporting sound environmental regulations and public policies.
Customer orientation. With rapid economic growth, social and environmental constraints on our customers and local communities are rising. More companies in Brazil see sustainability as a business imperative, whether this is to secure a license to operate or to harness new growth opportunities. We believe that providing technological solutions offering greater ecoefficiency, as well as aligning our commitments to customer and societal expectations enhances our competitiveness.
Today, more than 85 percent of Brazilians live in urban areas, placing enormous strains on physical infrastructure and social systems, from congestion on roads to inequalities in access to quality healthcare, sanitation, and education. Brazil has also become the ninth largest energy consumer in the world, creating greater demand for energy and adding further strain on the country’s environment. As one of the leading nations on international climate change negotiations, Brazil has voluntarily committed to reducing its greenhouse gas (GHG) emissions between 36.1 to 38.9 percent by 2020, relative to 2005 levels.
GE Citizenship in Brazil
Reputation. Being responsive to the expectations
of our stakeholders—including those of a future workforce that desires to work at socially responsible companies—is vital to achieving our business goals in Brazil. We are proactively engaging with employees, local communities, universities, business partners, governments, and non-governmental organizations (NGO’s) and expect our local leaders to serve as ambassadors of GE’s citizenship.
REGIONALIZING GE’S CITIZENSHIP
Citizenship at GE is a full-time commitment to improving our social, governance, environmental, and economic sustainability efforts in the countries where we operate. GE’s code of conduct, “The Spirit & The Letter,” guides the way we do business in Brazil. Citizenship is a central element of our mission and performance, and we strive to embed our sustainability efforts in our strategy, core business operations, and daily actions.
our judiciary system and strengthening the governance of our public administration. Economically, with a Gross Domestic Product (GDP) of US$2.2 trillion in 2012, Brazil is the world’s seventh largest economy and has achieved macroeconomic stability. However, private investment is hampered by high interest rates. With the country hosting the World Cup in 2014 and the Olympic Games in 2016, there is greater demand for massive investments in such areas as urban and social development and transport infrastructure.
As in any other country, the challenges that we face in Brazil are unique and require efforts that are developed and implemented locally. To be sustainable is to be competitive today and in the future, and our commitment to citizenship is key to meeting our short-term objectives and ensuring the long-term sustainability of our business.
Socio-economic indicators have also improved. According to Fundação Getulio Vargas (FGV), the rate of poverty (people living with US$2 per day or less) decreased by almost 20 percent between 2003 and 2011. The Brazilian middle class, also called “C class” (defined as those with daily incomes between US$6.1 and 26.2), reached 105.5 million in 2011, and now represents 55 percent of the population.
Over the past few decades, Brazil has experienced rapid industrial, political, and economic change, which has led to new business opportunities, but also to significant sustainability challenges. Politically, Brazil is a strong and stabilized democracy. Challenges nevertheless remain, including improving 6
As part of our ongoing commitment to help solve these challenges, we went further to localize our global sustainability agenda in Brazil in 2012. This regionalization effort began by identifying Brazil’s social, environmental, and economic challenges most material to GE, and facilitating the incorporation of sustainability principles into our local business strategy, processes, and culture. Our regional sustainability agenda aims to address four key value drivers:
ACTIONS & PRIORITIES GOING FORWARD In 2012, we initiated a process of engaging our leaders on reflecting and advancing sustainability throughout our company. We also consulted with representatives from external stakeholder entities, including key customers, trade associations, environmental agencies, NGO’s, and governments, to learn about their perceptions and expectations of GE’s sustainability practices in Brazil.
Localization. In Brazil, as in many other
emerging economies, governments are looking to global companies to commit to local growth and development and to drive efficiency. Localization covers a variety of questions, such as local content manufacturing requirements, technology transfers, local skills and supply chain development, and local community investment. Localizing GE’s business and expertise in Brazil is part of our business strategy as we aim to collaborate effectively with governments and other stakeholders to meet the country’s development objectives.
Through these engagements, we have identified four strategic sustainability topics, which have become the focus of our local efforts: • Access to healthcare; • Skills gap; • Water scarcity and quality; Energy consumption; Climate change • Local Development 7
People Among our continuing efforts to address these challenges are:
Energy, water, and climate change.
Through ecomagination, we are helping our customers to solve their environmental challenges by focusing on improving their water, energy, and GHG emissions footprints, while driving profitable growth. Globally, we have invested more than US$5 billion in clean Research & Development (R&D) since 2005, and we plan to invest another US$10 billion by the end of 2015. The ecomagination platform also includes commitments to improving the environmental performance of our facilities, including reducing our energy and GHG emissions intensity and minimizing our water consumption; and communicating to and inspiring our customers, commercial partners, and the broader public to use more environmentally friendly technologies. For more on ecomagination, visit www.ecomagination.com.
Access to healthcare.
Healthymagination, launched in 2009, is our commitment to bringing high-quality, affordable healthcare to more people around the world. Globally, we are committing US$6 billion, with US$3 billion dedicated to developing 100 innovations by 2015 that increase access to higher quality and more affordable healthcare. This commitment also includes strengthening the health for our GE employees through our internal health and quality of life program, HealthAhead. For more on healthymagination, visit www.healthymagination.com.
Developing a skilled workforce is vital to our business and to the overall development and economic growth of Brazil. We are partnering with governments, universities, technical education institutions, and specifically, with the Brazilian National Service for Industrial Training (SENAI), mainly in the states where we operate facilities—which include Minas Gerais, São Paulo, and Rio de Janeiro—to develop the technical capabilities needed to meet market demands and help transform the Brazilian economy into a 21st century innovation hub. In addition to these three pillars, we are working to improve the quality of our employee-based volunteer programs and GE Foundation-funded initiatives—which have existed in Brazil since 1997—by aligning our social investment and community engagement efforts with the challenges facing our surrounding communities in Brazil. 8
The way we work with our business and community partners is rooted in our collaborative and high-performance culture, which is expressed through GE’s “growth values”—external focus, inclusiveness, imagination and courage, clear thinking, and expertise.
To be inaugurated in 2014 in Ilha do Fundão in the city of Rio de Janeiro, the GRC already employs 80 researchers working on developing technological solutions in the oil and gas, bioenergy, mining, rail, aviation, and healthcare industries. With an investment of US$250 million, this 290,000-square-foot, multi-disciplinary research and development facility will employ 400 researchers and engineers at full capacity, and will house four Centers of Expertise (CoE). The Bioenergy Systems CoE develops more efficient solutions to convert biomass and waste into energy, reducing the use of natural resources. The Smart Systems CoE provides our customers with more autonomous systems to help them with process control, data monitoring, and decision making, guaranteeing production efficiency. The Systems Integration CoE addresses customer software challenges bringing new technologies for data analytics, optimization and simulation, integration platforms, and information visualization. Finally, the Subsea Systems CoE houses researchers and engineers in the oil and gas industry, focusing on offshore drilling and production.
We are committed to helping our customers succeed, providing our employees with the resources they need to reach their goals and aspirations, and investing in our communities to ensure shared success. We focus our efforts around developing research capabilities and technical skills, improving access to quality healthcare, and investing in the communities where we live and work through social investment and targeted volunteerism.
LOCALIZATION AND CUSTOMERS PARTNERSHIPS To better serve our customers’ local needs, we have made Brazil the home of GE’s fifth Global Research Center (GRC), the first in Latin America. 9
GE businesses also work directly with our customers to develop solutions that address their sustainability challenges. For example, to help airlines reduce their fuel consumption, GE’s Fuel & Carbon Solutions (FCS) combine advanced data analytics and industry expertise to identify, implement, and monitor changes in the way flights are planned and flown, improving fuel efficiency. FCS has already helped customers such as Brazil’s GOL Airlines cut fuel consumption significantly. We estimate that the FCS innovations, along with Performance-Based Navigation (PBN) strategies, could save the entire global airline industry more than 1.3 billion gallons of fuel per year while eliminating more than 12.4 million metric tons of carbon dioxide equivalent emissions.
percent of the Celma workforce is involved in the program—more than 600 employees total. Based on survey results, 97 percent of the mentees found our program to be a positive development for their professional careers. This initiative has now been expanded to nearly all newly recruited engineers. We work every day to protect our employees by integrating GE’s Environment, Health, and Safety (EHS) standards into every person’s job and into all business processes. One of the ways in which we ensure our workers’ health and safety is through our global health and safety certification award program, GlobalStar™. Built on 21 elements, this program has helped improve teamwork and create a stronger bond with the company, all while building leadership skills and preventing workplace accidents. GE certified three sites in Brazil in 2012 and aims to certify four more sites in 2013, bringing us to a total of seven out of 14 sites certified by the end of 2013.
EMPLOYEES GE has a long tradition of investing in talent development. In Brazil, we partner with SENAI, Brazil’s major provider of vocational and technical training, to develop our future workforce and provide students and trainees apprenticeships with GE. In 2012, we trained approximately 225 students across different businesses.
We also focus on increasing the diversity of our workforce in Brazil. Our GE Women’s Network (GEWN) is a voluntary initiative that aims to provide leadership and career-broadening opportunities, as well as attract and retain successful women. To date, more than 500 women representing seven business units have participated in our GEWN hub in São Paulo. We
In Petrópolis, our GE Aviation Celma team continues to be recognized for the excellence of its mentoring program. Launched in 2008, the program engages employees with more than 10 to 20 years of aviation experience and 100 mentees each year. Today, 60
also operate GEWN hubs in Campinas and Petrópolis. Today, women represent 22 percent of our total workforce in Brazil.
COMMUNITIES GE’s business depends on the infrastructure, skills, and institutions of stable, prosperous societies and healthy environments. To succeed, we need to be part of building the communities in the locations where we operate. Volunteerism is an important aspect of employee life across all GE operations. In Brazil, we have eight GE Volunteer Councils, each one managed by local employees. In total, nearly 4,900 GE employees volunteered in 2012, contributing more than 45,000 hours and conducting over 300 volunteer events in four areas: education, health, environment, and community building. Andre Elmer, a dedicated member of our GE Aviation volunteer team in Petrópolis, was one of the four employees globally to receive the Gerald L. Phillippe Award in 2012, GE’s most prestigious recognition of personal civic involvement. Additionally, our Campinas facility hosts the largest GE Volunteers Council in Latin America, contributing 20,610 hours in 2012. In 2012, the GE Foundation donated more than US$260,000 to four partners in Brazil in the areas of health, education, and public policy. Through our partnership with Junior Achievement, we provided thousands of young people access to work-readiness, entrepreneurship, and financial literacy programs. In 2012, 161 GE employees contributed nearly 1,900 hours of their time to work with 1,016 students across 10 cities in Minas Gerais, Rio de Janeiro, and São Paulo.
Volunteerism is an important aspect of employee life across all GE operations. In Brazil, we have eight GE Volunteer Councils, each one managed by local employees. In total, nearly 4,900 GE employees volunteered in 2012, contributing more than 45,000 hours and conducting 301 volunteer events in four areas: education, health, environment, and community building.
We also partnered with INMED Brasil, an NGO focused on preventive health education to vulnerable, underserved and hard-to-reach populations. In the Salgueiro community, an area of Rio de Janeiro that has historically had very little access to community health agents and healthcare education, we provided training to a team of 13 community health educators. As a result of this training, 130 individuals received baseline anthropometric measurements, hemoglobin testing, and blood pressure measurement in 2012. Through this partnership, we have helped to improve 10
Planet We are working with a range of educational institutions to build the capacity of young people and prepare them for entering the workforce. We created the Lean Challenge, inspired by the Toyota Lean Program, and interned 26 university students in 2012 for six weeks with the objective of identifying improvements in GE’s manufacturing processes.
health access to vulnerable populations through direct referrals for care, building peer networks to encourage access to care, educating the public about available services, and using community forums to promote the use of preventive care and screening services. Illustrating our effort to improving the quality of healthcare in Brazil, our facility in Minas Gerais is developing healthymagination equipment, including the BRIVO OEC 850, a surgical arch used to perform minimally invasive surgery with high-definitionquality images and lower radiation exposure.
We also support “Science Without Borders,” a program created by President Dilma Rousseff, to increase the international exposure of Brazilian students in science and engineering education. In 2012, we offered 10 Brazilian students with internships in GE operations in the United States in the fields of aviation, healthcare, and research and development.
Another example of our healthymagination efforts is the acquisition of XPRO, a Brazilian medical device manufacturer focused on providing affordable, interventional imaging solutions—thanks to a unique mix of imaging technology and low-cost mechanical solutions—to new users and rural communities. This is the first acquisition that we have made in the healthcare industry in Latin America.
We are also sponsoring ‘’Young Scientist Award’’, which aims to reveal talents, boost research in the country and invest in students and young researchers seeking to innovate in solving societal challenges. For more on Young Scientist, visit: www.jovemcientista.cnpq.br.
Performance Highlights 2012
Planet Brazil is home to one of the world’s most diverse ecosystems, which has been threatened by the country’s intense economic and demographic growths.
the resource is concentrated in the southeastern region where 45 percent of the Brazilian population lives, including the most populated urban centers: São Paulo and Rio de Janeiro. In addition, water distribution infrastructure suffers from inefficiencies, and according to Brazil’s National Water Agency (ANA), around 56 percent of urban sewage is collected, but only 34 percent of this volume is treated, endangering water quality.
Recognizing this challenge, we are working to track and reduce the impacts of our operations and supply chain by managing our environmental performance using proprietary EHS management systems and Supplier Responsibilities Guidelines (SRG). We also recognize the significant impacts we can make through our products in use. For this reason, we focus on developing technologies and solutions to reduce our customers’ environmental footprints. We believe that these efforts will also provide economic benefits to Brazil in the form of cost savings and employment opportunities.
In response to water scarcity and quality issues, GE promotes wastewater reclamation, treatment, and recycling technologies, mainly for industrial applications and public utilities. We have deployed one of the world’s largest fleets of mobile water treatment systems, providing rapid response for a full range of reverse osmosis, filtration, demineralization, softening, and de-oxygenation treatment on demand. These mobile units are now being produced in our plant in Sorocaba in the state of São Paulo.
WATER While Brazil accounts for about 12 percent of the world’s fresh water, this resource is unequally distributed in the country. About 6 percent of 12
We also bring water purification solutions to industry and communities, such as our ZeeWeed® 13
ultrafiltration membrane technology, one of the most advanced effluent treatment technologies. We have deployed this technology in the city of Campinas, where untreated sewage was previously discharged into rivers, compromising communities and businesses downstream. In partnership with SANASA, Campinas’ municipal wastewater plant, ZeeWeed® is helping to treat 100 percent of the city’s sewage. This is the first of many projects to help Brazilian municipal governments in their efforts to achieve universal water and wastewater coverage.
power a city of 20,000 inhabitants for 15 years. Thanks to our Jenbacher technology, Valorgás will help reduce emissions by an equivalent of 30,000 tons of carbon dioxide during this period of time.
Performance Highlights 2012
ENVIRONMENT AND RESOURCE MANAGEMENT
Environment and resource management at GE is led by our EHS team and relies on GE’s global Environmental Excellence management system. This system is based on 182 requirements in six areas: air, water, waste, waste and materials shipping, chemical content, and general environmental management, compliance, and training practices.
ENERGY In 2012, we celebrated a significant milestone in the renewable energy space with the installation of our 300th wind turbine in Brazil. While Brazil has historically relied heavily on hydropower, which accounts for 75 percent of the electricity supply, the country also has vast, untapped wind resources, thanks in large part to strong and steady wind conditions along its 4,600-mile coastline. Whereas wind accounts for only 0.9 percent of Brazil’s energy supply, it is the fastest-growing source of power generation in Brazil, and GE is leading this effort.
In 2012, we continued to deploy our “Treasure Hunt Teams” throughout Brazil, which engage employees to identify solutions to reduce our energy and water footprints, as well as GHG emissions. Some of our most impactful projects in 2012 included the relamping of our GE Water site in Cotia and building a new wastewater station at our subsea system site in Macaé. At our Sorocaba site, the EHS team also developed a new way to use stored wastewater to wash equipment.
To scale renewable energy successfully in Brazil, we are working with Brazil’s National Electric Agency (ANEEL) and the Brazilian Wind Energy Association (ABEEólica). ABEEólica has set a goal of achieving 10 gigawatts of wind energy capacity by 2020. GE has been contributing to this goal by designing and commercializing turbines that are customized to take advantage of the high-wind and low-turbulence conditions found in Brazil, increasing the efficiency of wind power generation.
Notes to Data:
Revenues in BRAZIL
1. Energy Consumption includesInvestments all fuels and in Research electricity used by all sites in the listed country. & Development in Brazil 2. Change in Energy Consumption is for all reasons including energy efficiency projects, changes in manufacturing processes, and changes in production driven by market conditions.
The accumulation of garbage in landfills is another major environmental challenge. Methane gas, which is generated by the decomposition of waste, has a global warming factor 25 times greater than carbon dioxide. However, it can also be turned into a rich source of energy. GE Jenbacher J420 biogas engines, an ecomagination technology, convert methane gas into energy. We installed this equipment in two facilities operated by the Brazilian landfill company Valorgás in Guatapará, in São Paulo and in Juiz de Fora, Minas Gerais, to generate up to 5.6 megawatts of energy from landfill waste—enough energy to
production driven by market conditions for Criteria Sites. 6. Greenhouse Gas Emissions are the sum of Direct (Scope 1) and Indirect (Scope 2) emissions for all sites in the listed country. 7. Change in Greenhouse Gas Emissions is for all reasons including Greenhouse Gas reduction projects, changes in manufacturing processes, and changes in production driven by market conditions for all sites in the listed country.
3. Energy Intensity is the Energy Consumption divided by the industrial revenue for the listed country. 4. Water Withdrawal is the total site water supplies used by Criteria Sites (sites that used 15 million gallons of water per year at any time since 2006) in the listed country.
8. Greenhouse Gas Intensity is the Greenhouse Gas Emissions divided by the industrial revenue for the listed country.
5. Change in Water Withdrawal is for all reasons including water use reduction projects, changes in manufacturing processes, and changes in 14
Revenues in BRAZIL
Economy JOB CREATION & SKILLS DEVELOPMENT
developing opportunities in urban infrastructure, with a focus on providing healthcare, water, waste, energy, and transportation solutions that will support the infrastructure goals of our local state and municipal governments.
GE has been present in Brazil for more than 93 years and has expanded its footprint in the states of São Paulo, Rio de Janeiro, and Minas Gerais to a total workforce of nearly 8,800 employees at the end of 2012.
We also support sound public policies through thought leadership. In 2012, GE Foundation financed a study by the Brazilian Center for International Relations (CEBRI) on Brazil’s current industrial policy and competitiveness. The report, entitled “Domestic Industry: Development in the Context of the International Crisis: Evaluating Strategies,” is an important contribution to the ongoing debate on how public policy will foster sustainable, economic growth in Brazil. The study analyzes Brazil’s industrial policy in the sectors of oil and gas and healthcare. It also includes a set of recommendations to help Brazil increase its global competitiveness and avoid resorting to protectionism.
In Contagem, we established Latin America’s first healthcare manufacturing facility to develop equipment such as x-ray and mammography machines. Launched in 2010, this facility is part of our strategy to invest in local production and serve the Latin American market.
Economy Brazil has experienced significant economic growth in the past decade and is now the seventh largest economy in the world with a GDP of US$2.2 trillion in 2012. Economic growth has also been boosted by rapid urbanization. Brazil’s urban population reached 194 million people in 2012 and is expected to reach 200 million by 2030.
We are also equipping the new headquarters of the Organizing Committee for the 2016 Olympic and Paralympic Games with approximately 3,000 LED fixtures. This will save the Organizing Committee about US$500,000 in energy costs over the four years of operation of the building, compared to fluorescent technology options. In addition, the maintenance costs during these four years will be virtually nonexistent, since our LED technology provides a useful life of 11 years compared to conventional fluorescent lamps, which last for five years.
INFRASTRUCTURE Much work has already begun to prepare Brazil for the upcoming marquee global sporting events, including the 2014 World Cup and the 2016 Olympic and Paralympic Games. We see these events as opportunities to build modern and more efficient cities and infrastructure for Brazilians to enjoy for decades to come. We are already underway in implementing some of our solutions. GE Lighting is paving the way for greener lighting solutions in Lagoa Rodrigo de Freitas, where we have completed the installation of 450 Light Emitting Diode (LED) fixtures. The LED technology provides energy savings of 50 percent and a 50 percent reduction in annual carbon dioxide emissions compared to previous lighting fixtures.
Beyond the Games, we continue to work closely with local and state governments to remove bottlenecks in Brazil’s ports, railways, and roads. While the government has set a goal to double the effective capacity of the Brazilian railway network by 2023, GE is making an important contribution to this effort through the renewal of the Brazilian fleet of locomotives. In 2012, we manufactured 60 locomotives in GE Transportation’s industrial facility in Contagem, Minas Gerais. We are also providing cleaner transportation options with the ecomagination-certified AC44i model, which offers increased efficiency in fuel consumption and reduced GHG emissions intensity.
Brazil is a leading recipient of foreign direct investment, which has helped spur economic growth, but has also created human resource challenges. Whereas employers like GE are creating jobs that favor a more educated workforce, only 11 percent of all university graduates in Brazil own degrees in science and engineering. As of 2009, engineers made up only 0.47 percent of the workforce, according to the Labor Ministry.
GE also hosted the Inova+ Conference to discuss the role of innovation in Brazil’s sustainable growth. The event was produced through a partnership between GE, the National Confederation of Industry (CNI), and the Brazilian Agency for Promotion of Exports and Investments (Apex). More than 380 participants attended the event and participated in roundtables to discuss how industry and government can work together to innovate in energy, aviation, healthcare, transportation, and water infrastructures.
Most of our businesses have established local partnerships with SENAI and have developed customized training programs to develop the necessary skills to sustain our business growth. In healthcare, for example, we introduced a new program to train young professionals in radiological and biomedical equipment and services in partnership with SENAI. Specifically, we installed 56 new equipment of GE healthcare, which will be used for training purposes at one of SENAI’s school laboratories in São Paulo.
LOOKING AHEAD We will continue our sustainability efforts as an integral component of GE’s business growth in Brazil. We will also develop commitments and goals for the sustainability issues identified as strategic to GE, and establish a governance structure to support the integration of GE Foundation and GE Volunteers activities across the region.
GE’s Global Research Center in Rio de Janeiro will also feature a Crotonville Rio Learning Center that will train employees, partners, and GE customers.
PUBLIC POLICY & PARTNERSHIPS Helping to build sound public policies and publicprivate partnerships is critically important to the sustainability of our business in the countries where we operate.
While there is still much work ahead of us, we believe that by pursuing these efforts, we will achieve our ambition to be Brazil’s leading partner in infrastructure, innovation, and technology, and contribute to the country’ sustainable growth.
We developed an agenda that includes tracking and 17
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Performance Highlights 2012 Revenues in BRAZIL
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Date of publication - 10/10/2013
This report, undertook for the first time in Brazil, intends to provide stakeholders with a broad vision of the initiatives implemented by the company throughout the year and of the impacts of the company’s decisions and operations in the country. The metrics contained in this report relate to the period from January 1st to December 31st, 2012.
To report concerns related to compliance with the law, GE policies, or government contracting requirements, contact our Latin America Global Growth Operations (GGO) Ombudsman, Reyna Torrecillas at: Reyna Torrecillas Chief Compliance Officer – Latin America GGO Ombuds Leader
Investments in Research & Development in Brazil
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