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SUSTAINABILITY REPORT

2011

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SUMMARY 1 2 3 4 5 6 7 8 9 10

A MESSAGE FROM THE BOARD Page 4

REPORT Page 6

OUR COMPANIES Page 8

CORPORATE GOVERNANCE Page 16

COMUNICATION CHANNELS Page 22

ENVIRONMENTAL PERFORMANCE Page 26

ECONOMIC PERFORMANCE Page 32

SOCIAL PERFORMANCE Page 36

GLOSSARY Page 50

CORPORATIVE INFORMATIONS Page 54


A MESSAGE FROM THE BOARD Marcopolo has got the satisfaction to present the first Sustainability Report of its operations in Brazil. This report has been done according to the methodology of the Global Reporting Initiative (GRI). Since its founding, in 1949, Marcopolo shows its worry about the welfare of its employees and the communities where it’s inserted. So early the company created programs of motivation, gratitude and valorization of its employees, being ahead on themes related to career, capitation and benefits. Action to improve the environmental conditions, such as effluent treatment stations and meeting the requirements of the certification norms, are part of the company goal and they are in constant improving. Marcopolo believes and defends the idea that investments in urban mobility have to increase in the next years all over the world. Otherwise, traffic will be always more chaotic in the big cities, principally with the increasing of population and the main choice of an individual transport. There is also a pressure of the environmental regulators to reduce the emission of harmful gases produced by vehicles, which contribute to the global warming and they cause damages to human health. For these reasons mobility will occur using collective transport, like buses, trains, underground or other alternatives that will be developed.

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A MESSAGE FROM THE BOARD

As a bus manufacturer, Marcopolo aims to help the future world to move in a sustainable way. Its products line includes models for highway transportation, urban transportation, micros and mini bus. For more than a decade, Marcopolo identified the need to offer a vehicle for collective transportation able to face lines that were not attended regularly in an agile and fast way. The result was the creation of Volare, a minibus with 32 people capacity and adaptable to several market segments. Volare has excelled in school transport through the “Programa Federal Caminho da Escola” (School Path Federal Program), complying the safety norms and facilitating the access to school for children. Marcopolo engineering has as one of its goal the developing of products that use cleaner manufacturing technologies, have larger recycling capacity at its final disposal and also gradually use more recycled materials. Furthermore advanced aerodynamic concepts and latest generation structural concepts produce lighter and less resistant to air buses economizing fuels.

There are currently 16 Continuous Amelioration Teams and 107 groups of Improvement Suggestions in the Marcopolo Environment (SUMAM). These teams and groups contribute to the identification of opportunity for improvement of the environment, in the process and in the product, offering solutions of practical applicability and the return of the investment in the short to medium term. Marcopolo invests in the modernization of its production processes with the acquisition of machinery and equipment of last generation, innovations of methods and processes aimed at providing improvements to the ergonomic, health and safety of its employees. Two tears ago the Company started a deeper study about Sustainability, creating a Commission formed by representatives of economic, social and environmental areas. Marcopolo also contracted specialized consulting and it performed seminaries for the alignment of knowledge of the executives about the theme, which allowed the identification of opportunities for improvement in the various areas of the enterprise. Although Marcopolo has published, since 1998, Social Balance Sheets that follow the model “Ibase”. A complementary analysis of the Sustainability Commission indicated the need to relate the activities of the Company using the indicators of the Global Reporting Initiative, as a way to enlarge the account performance to the stakeholders about the theme and what still has to be developed in the company. The indicators used in this GRI edition will be included in the Balanced Score Card of the company for year 2013. Marcopolo comprehends the need to enlarge the Sustainabiliy Commission performance, too, including the representatives of the different areas of organization, as well as the need to promote the engagement of the stakeholders about the sustainability discussion. Furthermore, the Company cares for the good practices of Corporate Governance and for the standards of conduct that must be reflected in the relationship among the people who take part of the Marcopolo context. In this way, Marcopolo understands that it’s taking important steps to make sustainability part of the permanent schedule of priorities, influencing the business strategies of the company, its people management practices and its performance in the society.

José Rubens de la Rosa Director General

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REPORT PROCESS The Sustainability Report of Marcopolo in Brazil is

As it is the first report in GRI format, no en-

the first one published by a company that follows the

gagement process of stakeholders was realized,

methodology of Global Reporting Initiative, getting to

which is the next year goal of the company for

the Level C of the GRI application (schedule follows).

that it will use systematic of dialogues and re-

The collection of indicators is annual and in this re-

search. Targets for improvement were also not

port it represents the results from 2009 to 2011, including the industrial operations of Marcopolo situated

suggested to the indicators, but these will be needed to establish the goals that will be listed

in Caxias do Sul (RS) and Ciferal in Duque de Caxias (RJ).

in the company’s BSC in 2013.

The indicators used in this edition have been chosen

In the case of few indicators, it’s not been pos-

through internal discussions with the involved areas,

sible to raise the data referring the three years in-

which identified the relevant themes for the company

cluded, because the implementation and/or the

business.

mensuration of some processes is recent, especial-

Economic-financial information have been presented in a consolidated version, according to the adopted

ly in Ciferal, which is in a modernization phase of its productive and management practices.

accounting practices in Brazil and with the IFRS - In-

Also, as it is the first report in this format, the

ter national Financial Reporting Standards settled by the

information was not submitted to an external

IASB - International Accounting Stardards Board.

examination.

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LEVEL OF GRI APPLICATION The GRI Sustainability Report meets the requirements for the level C of GRI application, according to the projecting parameters of the following schedule:

Optional

Information about the Form of Management of G3: Result

Not Demanded

Indicators of G3 Performance and Indicators of Sector Supplement

Respond to a minimum of 10 Performance Indicators, including at least one from each of the following performance areas: social, economic and environmental

B

B+

Respond to all the criterions listed on the Level C more: 1.2; 3.9 to 3.13; 4.5 to 4.13, 4.16, 4.17. Information about the Form of Management of each Category of Indicator

Respond to a minimum of 20 performance indicators, including at least one of each of the following performance areas: economic, environmental, human rights, work practices, society, responsibility for the product

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A

A+

Same is required for level B

Form of Management publicized for each Category of Indicator Report on each G3 and sector supplement* Indicator with due regard to the Materiality Principle by either: a) reporting on the Indicator or b) explaining the reason for its omission

With external verification

Respond to items: 1.1; 2.1 to 2.10; 3.1 to 3.8, 3.10 to 3.12; 4.1 to 4.4, 4.14 to 4.15 With external verification

REPORT

G3 Profile: Result

C+

With external verification

C

Obligatory

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GRI LEVEL


THE ENTERPRISES OF MARCOPOLO Marcopolo S.A. is a publicly traded corporation based in Caxias do Sul, in Rio Grande do Sul State, the Company is governed by a Social Statute and applicable legal dispositions. The Company brings people together through the buses it produces, since August 6, 1949, when its entrepreneurial path began.

In 2011, the

The enterprise, whose name is bonded to the history of transporta-

consolidated

tion in Brazil, was founded in Caxias do Sul with the name Nicola &

production of

Cia. Ltda. In 1971, thanks to the success reached with the launching

Marcopolo totalized

of the bus named “Marcopolo�, the official name of the company turned into Marcopolo S.A. The constant growth consolidated the

31,526 units, 14.3

organization, that since has produced more than 300 thousands bus-

% higher than

es in its factories in Brazil and abroad, with a workforce of 17 thou-

the 27,580 units

sands employees in 2011. Marcopolo is leader in the Brazilian market with 45.7 % of market share in the bus sector and it is placed among

produced in the

the biggest manufacturers in the world.

2010 fiscal year,

It is listed since September 2002 in the special section of the market

and 62.2 % higher

of BM&FBovespa holdings called Level 2 of Corporate Governance.

than the 19,384 units produced

COMPANY’S GOAL

in 2009. Of this

The objective of the company is the manufacturing and commercial-

total, 67.2% were

ization of buses, motorized vehicles, of vehicle bodies, tractors, ag-

produced in Brazil

ricultural machines, industrial machines and engines, iron and steel equipment and furniture, tools, ironware, cutlery, metallic structures,

and the remaining

as well as the treatment of materials destined to the manufacturing

32.8% abroad.

of these products, materials for warming and ventilation installa-

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tions, repairing services, maintenances, restoration and reconditioning, including technical support for all products in their branch of industry and commerce, negotiation and representation, import and export of these products and services, agriculture, afforestation and reforestation, and it may also participate in other companies in Brazil or abroad.

MARCOPOLO ENTERPRISES 9

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VISION AND GOODNESS

GLOBAL PRESENCE

INTERNACIONALIZAÇÃO

The continuous and dynamic growth led the Com-

The year 2011 has been a mark for Marcopolo, which

pany to look for new fronts of global business. It

recorded records of income and production. The Com-

enlarged operations of production and commer-

pany followed its strategy of internationalization and

Being recognized worldwide as one of the most competitive entre-

cialization and today it’s got remarkable presence

announced an agreement to constitute a commercial

preneurial groups in its business and a group with economic and

in more than 100 countries of the five continents.

joint venture, in Russia, with OJSC KAMAZ Group, the

social solid image.

Bus manufacturing is performed in 12 units, four

biggest automobilist enterprise in that country. In this

of them in Brazil (two in Caxias do Sul – RS, one

year the Company also communicated the signing of

VALUES

in Duque de Caxias – RJ, other than the participa-

a contract for the acquisition of 75% participation of

tion of 45% in San Marino Ônibus e Implementos

the enterprise Volgren Australia Pty, Limited, biggest

Respect and Valorization for People

Ltda. Company, also situated in Caxias do Sul – RS),

The relationship between people in Marcopolo is about respect,

and eight units abroad, one unit owned in South Af-

valorization and transparency. Anyone, both from the Company

rica and joint ventures in Argentina, Australia, Co-

and out of it, must be treated with dignity and justice. The team-

lombia, Egypt, India (2) and Mexico. In China, the

work done by committed, motivated and prepared people is one of

Company owns a parts and components factory for

the differentials of Marcopolo.

bus bodies. Marcopolo detains 40% of participation

VISION

Customers’ Satisfaction Customers’ satisfaction is the reason for Marcopolo’s success. Efforts must be directed to identify what is perceived to have value

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by customers, undertaking any action if so needed to transform these values in reciprocal profitable realities, backed in long-term relationships. The closeness to customers is a key requirement for this value.

bus manufacturer of Australia, with market shares exceeding 40%, based in Melbourne. The Company also increased its participation in Metalpar, in Argentina, from 40% to 50%, as already foreseen in the contract signed with the company Loma Hermosa SA on 21st September 2007.

of SPHEROS (acclimatization and air-conditioned), 30% of WSUL (foams for seats) and 26% of MVC

INTERNAL MARKET

– Plastic Components. Furthermore it detains the

Brazilian internal market remains the big propeller

whole control of Moneo Bank, constituted to give

of demand. Marcopolo operated during 2011 with

support to the financing of Marcopolo products.

elevated utilization of the installation’s capacity and realized important investments for expantion and modernization of the manufacturing units, as well

SUBSIDIARIES AND AFFILIATES

as the improvement of the operational efficiency

Regarding the subsidiaries and affiliated companies

Economic-Financial Solidity

abroad, 2009 was the year for readjusting the Com-

Marcopolo has as basic premise that economic-financial solidity in

pany’s strategy in its internationalization process.

business is fundamental to its own sustainable growth. The com-

Coimbra factory in Portugal has been deactivated.

promise with Excellence in Results and Value Generation must

Likewise Marcopolo ended the association that,

guide the professionals and partners of Marcopolo.

through its subsidiary company Ciferal Indústria de

and the quality control of its products. The results were benefited by several factors such as: the gross domestic product (GDP), even if lower than expected by the market; the favorable financing conditions; exchange rate more competitive for exporting companies (mainly from September onwards);

Ônibus Ltda., it maintained with the company Rus-

Environment and Communities

promauto, in Russia, today named Gaz Group, as its

Marcopolo and its collaborators have an important compromise

share in the assets was transferred to a new Russian

with health, security, environment and the communities where

enterprise, 100% controlled by the company.

the big demand of bus with chassis still with the Euro 3 emissions standard and the program “Paths to School” of the Federal Government.

they act.

Ethics Marcopolo adopts an attitude of responsibility and respect to people and institutions it relates with. It’s very important for the company to avoid conflicts of interests. On the occurrence of such situations, they must be solved in a transparent way, according to the

STRATEGIC PLANNING

PRODUCT LINES

In 2011, the elaboration of Strategic Planning for the

The product line covers a wide range of models,

next five years also stands out. The plan includes the

composed with the groups of highway, urban, mi-

goals of growth and investments of R$ 450 millions

cros and minis, beside the Volare family (buses com-

for the same period.

plete with chassis and bodies).

guideline of the Conduct Code.

Partnerships The partners, mainly characterized as Suppliers, Assemblers, Commercial Representatives, Financial Institutions, Distributors and Resellers have an important role for Marcopolo. Long-term relationships must be built with clear rules and practices that result in joint success.

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BUSINESS UNITS

PRESERVING HISTORY The Memory Documentation Centre of Marcopolo was created as part of the celebration for the 50th year of Marcopolo, in 1999. At first the

One of the biggest bus manufacturers world-

main concern was to rescue the documents that

wide, it actively participates in developing

would tell the story of the Company, so the doc-

and implementing solutions for the transpor-

umentation was separated in large issues. But it

tation of passengers in some of the main mar-

was in 2004, when the company completed 55

kets of the world.

years, that it implemented the Project of Rescue and Treatment of Historical Collection, with the objective of organize and make available the information through a database. In 2011 this space has been refurbished. Today, the Center brings together more than 60 thousand items and redeems the most important moments in the history of Marcopolo, through newspaper reports, company documents, photos, videos and advertising

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Traditional Brazilian bus manufacturing

campaigns. It is still possible to follow a timeline

brand, it was fully acquired by Marcopolo in

through an interactive screen and personalize the

2001 and it’s focused on the production of

visit starting from the definition of the most in-

urban models, it has its manufacturing unit

terested aspects.

in Rio de Janeiro.

For the director of Marcopolo, Valter Gomes Pinto, the documentation center is a gift to all employees and their families, as well as for the community. “Preserving the past is a way to honor all those people who have been part of a story and also allow the future generations to learn and grow up from experiences already lived,” says the director.

Created in 2005, Moneo Bank acts in the national financial market, investment portfolios, leasing, financing and investment. Its main objective is to enable the company’s customers to access to credit lines to purchase the buses of the manufacturer.

Independent business unit, Volare is the main Brazilian manufacturer of minibuses, operating since 1998.

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HIGHLIGHTS AND AWARDS IN 2009 - 2010 - 2011

2009 • Troféu Ítalo Victor Bersani CIC Caxias do Sul

• AutoData Award - The Best of Automotive Sector 2009 AutoData

• Top of Mind - The most remembered ones by Gauchos Amanhã Magazine

• Corporative Reputation Award - Amanhã Magazine

• Industrial Merit Award - FIERGS

• Big&Leader Award - The Biggest 500 of the South Amanhã Magazine

• Anefac 2009 Transparency Trophy Fipecafi - Serasa Experian

• Biggest & Best of Transportation and Logistic Award - Transporte Moderno Magazine

• Top Human Being Personality Trophy - Brazilian Association of Human Resources, section of Rio Grande do Sul (ABRH - RS)

• Social Responsabiliy Award - Big Companies Category Legislative Assembly of Rio Grande do Sul

• Apimec Award - Golden Apimec - SP • Apimec Award - Silver Apimec - RJ

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• Top Ten Trophy

• CNI Award - Design Category (Medium and Large Industry) CNI (National Confederation of Industry)

• IR Magazine Brazil Awards Trophy - IR Magazine Brazil Awards • Export ADVB Award - Association of Marketing and Selling Directors of Brazil

• Top of Marketing Award - Industry Category - Volare ADVB/RS

• Entrepreneurial Leader of Rio Grande do Sul

• AutoData Award - Personality of the AutoData year

• Champions of Innovation Award Amanhã Magazine and Edusys

2011 • Champions of Innovation Award - Amanhã Magazine and Edusys

• Corporative Reputation Award - Amanhã Magazine

• IDHO Award 2011 - Organizational Human Development Indicator 2011 - HR Management Magazine

• Top of Mind - Amanhã Magazine • Entrepreneurial Merit of Rio Grande do Sul - Destaque Gaucho

• Marcas de Quem Decide Award Certification of Brand Leader in Bus Manufacturing Sector – Commerce Journal and QualiData

• AutoData Award - The Best of Automotive Sector AutoData Editor • Award IR Magazine Brazil Awards 2011 IR Magazine

• MVC – Award- Award Patent Innovation -

• Environmental Merit - Magazine of Ecology and Environment

Ministry of Technology of France • MVC – Innovation Award - JEC 2011 - JEC Composites

2010 • Award to the best 100 in Corporative Citizenship 2010 - Special Distinction Category - Management & HR Editoring • Industry Distinction Award - FIERGS • Marcas de Quem Decide Award Commerce and QualiData Journal • Recognized Merit Award - Jornauto Magazine • Top of Mind 2010 - Amanhã Magazine / Segmento Researches • Brazil Protection Award 2010 - Proteção Magazine and Brazilian Yearbook of Protection • Export ADVB Award - Association of Marketing and Selling Directors of Brazil • IDHO Award 2010 - Organizational Human Development Indicator 2010 - HR Management Magazine

• Guri Trophy - Rádio Gaúcha • Friend of Culture Company Trophy - City Hall of Caxias do Sul

CERTIFICATIONS Politic of Business Management

Integrated Management of Norms

• Top of Marketing Award 2010 - ADVB/RS

Marcopolo recognizes Quality, Environment, Social Re-

The essence of Integrated Management of Norms is to

• Economist of the Year Award - Regional Council of Economy

sponsibility and Health and Safety as integrant part of

produce with quality, preserving the environment, guar-

its Business Management and the Company establishes

antying health for the workers with responsibility and

mechanisms to implement these systems, continuously

ethics.

• AutoData Award 2010 - AutoData Magazine

maintained and improved.

• Distinction in HR and Management Award - Gestao & RH Editor

Hence why the Company commits itself to ensure the

• Champions of Innovation Award Amanhã Magazine

of continuous improvement and excellence in quality;

• Biggest & Best of Transportation and Logistic Award - Transporte Moderno Magazine • Certification of Ecxellence in Sustainable Management - Expressão Editor

Marcopolo holds certifications:

• ISO

growing satisfaction of its customers through the pursue

since 1996;

• ISO

consideration of environmental, occupational, social and quality variables, the development of new products

14001 - Environmental Management –

Certified since 2005;

and processes; ensuring the application of laws, rules and

• SA 8000 -

other regulations to effectively achieve the planned objec-

Social Responsibility –Certified since

2003;

tives; prevention of pollution, accidents at workplace and

• OHSAS

occupational diseases; and being an ethically and socially responsible company towards the public.

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9001 - Quality Management - Certified

18001 – Work Health and Safety –

Certified since 2002.

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CORPORATIVE GOVERNANCE Marcopolo adopts good practices of corporate governance following the principles of transparency, fairness, accountability and corporate responsibility. Its shares are listed on Level 2 of Corporate Governance of BM&FBovespa since 2002. The management of Marcopolo is formalized and based on the distinction among the functions and responsibilities of the Board of Directors, Audit Board and the Executive Board, being the Board of Directors the superior body of governance and collegiate decision of Marcopolo. The Company provides annual financial statements in English language too, based on internationally accepted accounting principles; it performs annually at least one public meeting with analysts and teleconferences with analysts and investors; it publishes annually a Calendar of Events; it holds a Code of Conduct, a Policy about Disclosure of Information and a Trading Policy of securities (more information on the Relationship with Investors item). It is linked to the Arbitration Clause, maintaining statutory provision meaning that the Company, its shareholders, directors and members of the Audit Board commit to resolve any disputes or controversies that may arise between them through arbitration.

PRESIDENT EMERITUS In the Assembly held on March 20, 2012, the statutory position of Chairman Emeritus of the company was established; with an exclusively honorific, personal, nontransferable character. Paulo Bellini has been appointed to the position. The President Emeritus is commissioned to ensure the preservation of the culture of Marcopolo, aiming to strengthen the ethical values and principles of the enterprise, contribute to strengthening actions aimed at people management, to ensure the continued motivation of employees; act as mentor of executives of the company;

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CORPORATIVE GOVERNANCE

monitor the institutional-political activities of the enterprise, and to protect the brand and image of Marcopolo as well as fulfilling its social function. President Emeritus may attend meetings of any body of the enterprise.

BOARD OF DIRECTORS The Board of Directors is composed of seven members, being the majority of them independent. One of the independent councilor was indicated and elected by the minority shareholders, another one was indicated and elected by the shareholders who detain preferred shares, and the other two independent councilors were indicated and elected by the Controlling Shareholders. The Board has a secretary, who is part of the direction too. The members of the Board are expressly stated as such during the act that elects them via a General Meeting which might dismiss them at any time, during a unified mandate up to two years long, their management will extend until the investiture of new elected directors, reelection allowed. The Board of Directors Chairman is not part of the direction. To assist, provide feedback and support in conducting business, The Board of Directors counts, on a permanent basis, on a technical and Audit Board, called the Executive Committee. The Board of Directors also counts on the following Committees for Support: Audit and Risk Committee, Human Resources and Ethics Committee and the Strategy and Innovation Committee.

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BOARD OF DIRECTORS MEMBERS

AUDIT BOARD MEMBERS

NAME

POSITION

ELECTED IN

MANDATE

Mauro Gilberto Bellini

Chairman

March 2012

Two years

Oscar de Paula Bernardes Neto

Vice-chairman

March 2012

Two years

Luciano Moisés Bado

Councilor

March 2012

Two years

Maria Letícia de Freitas Costa

Indep. Councilor

March 2012

Two years

Paulo Cezar da Silva Nunes

Indep. Councilor

March 2012

Two years

Fuad Jorge Noman Filho

Indep. Councilor Representing the Minority

March 2012

Two years

Manuela Cristina Lemos Marçal

Indep. Councilor Representing the Preferred

March 2012

Two years

NAME

POSITION

ELECTED IN

MANDATE

Francisco Sergio Quintana da Rosa

Councilor elected by the controllers

March 2012

One year

Egon Handel

Councilor elected by the preferred

March 2012

One year

Jerônimo Campos

Councilor elected by the minority

March 2012

One year

NAME

POSITION

ELECTED IN

MANDATE

Sérvulo Zardin

Substitute of Francisco Sergio Q. da Rosa

March 2012

One year

Eduardo Bittencourt

Substitute of Egon Handel

March 2012

One year

Marco Antonio da Silva

Substitute of Jerônimo Campos

March 2012

One year

SUBSTITUTES

COMMITTEE OF HUMAN RESOURCES AND ETHICS

DIRECTION MEMBERS

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HOLDER

The Committee of Human Resources and Ethics has the responsibility of guaranteeing the alignment of the processes of people management and the strategies of development for the Company. Its functions are observing the

NAME

POSITION

ELECTED IN

MANDATE

José Rubens de la Rosa

General Director

March 2012

Two years

Valter Gomes Pinto

Director

March 2012

Two years

opted by the company and its impact on the institutional image; monitoring the management of organizational

Carlos Zignani

Dir. Rel. w/Invest.

March 2012

Two years

climate and the actions of strategic nature taken; assessing new policies and practices of personnel management

José Antonio Valiati

Diretor

March 2012

Two years

for the Company; ensure and update the Company’s Code of Conduct, promoting its disclosure and disseminat-

succession process of the strategic positions; monitoring the market practices regarding executive remuneration; monitoring the system of remuneration of the administrators; supervising the practices of social responsibility ad-

ing appropriate standards of conduct for the Company; providing guidance to who is concerned in case of doubt about the application of the Code of Conduct, as well as the assessment and decisions to make when there are verified cases of violation of the established principles. This committee consists of six members with a two year term

EXECUTIVE COMMITTEE MEMBERS

that is appointed annually by the Board of Directors during the first meeting after the Ordinary General Assembly.

NAME

POSITION

ELECTED IN

MANDATE

Mauro Gilberto Bellini

Effective Member and Coordinator

March 2012

Two years

Paulo Bellini

Effective Member

March 2012

Two years

ciency of internal audit, the process of monitoring the compliance with laws and regulations of the financial state-

Valter Gomes Pinto

Effective Member

March 2012

Two years

ments, the efficiency of internal controls and the management system of risks and the treatment and investigation

José Rubens de la Rosa

Indicated Member

March 2012

Two years

Carlos Zignani

Indicated Member

March 2012

Two years

Carlos Alberto Casiraghi

Guest Member

March 2012

Two years

Ruben Antonio Bisi

Guest Member

March 2012

Two years

AUDIT AND RISKS COMMITTEE The Audit and Risks Committee has as objective reviewing the independent audit process, methodology and effi-

of reports of fraud. Other functions of this committee are supervising and assessing the financial and accounting reports; supervising the external audit; supervising the process of risks-management and of internal supervision; assessing the compliance with laws and regulations; reporting frauds directly to the Board of Directors; monitoring risky actions and interacting with the Audit Board Members.

COMMITTEE OF STRATEGY AND INNOVATION The Committee of Strategy and Innovation aims to the implementation of the process of Strategic Planning fol-

AUDIT BOARD

lowing the company’s key competencies such as the critical review of the business, the consistency between the

The Audit Board is composed of three members, one appointed by the minority shareholders, one by the

objectives and strategies, the adherence to market trends, the innovation of products and services, the competi-

holders of preferred shares and one by the Controlling Shareholders, and a same number of substitutes, who

tiveness of products and services, suitability of investments for creation of value and sustainable growth. Among

might be shareholders or not, resident in the country, that can be reelected, met the requirements of the

the functions that compete to it are the proposition of strategies and innovations for development, the growth

legislation in force.

and the consolidation of the company; the leadership and coordination of the process of the Strategic Planning of the Company, such as the focus on new market opportunities; the creation of a strategic vision of the future inside the Company; the monitoring of the execution and implementation of the Strategic Plan.

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REMUNARATION OF THE ADMINISTRATION

RISKS MANAGEMENT POLICY

The annual overall amount of fixed remuneration is set by the General Assembly and distributed among the

The Audit and Risks Committee together with the Board of Directors monitors and assesses the

administrators, directors and members of the Executive Committee by the Board of Directors. The members

adequacy of its operation with the policies adopted, with the support of the Internal Audit.

of the Board o Directors and the Audit Board don’t receive variable remuneration.

The Risks Management Policy orients in relation to the transactions and requires the diversification of transactions and counterparties. In accordance with this policy, the nature and the general

RULES FOR IDENTIFICATION AND MANAGEMENT OF CONFLICTS OF INTEREST

position of financial risks are regularly monitored and managed by Chief Financial Officer and the Director General, to evaluate the results and the financial impact on the cash flow. Under this

The Board of Directors approves the conclusion of contracts between the Company and its directors and controlling shareholders, or among the Company and parties direct or indirectly controlling or controlled by controlling shareholders.

policy, market risks are hedged when it is considered necessary to support the corporate strategy or when it is necessary to maintain the level of financial flexibility. Are also reviewed periodically, credit limits and quality of hedge counterparties. The controls are periodically audited internally, and the Company operates financial instruments with the sole purpose of asset protection (hedge).

Regarding the Company’s Code of Conduct, which is applied to the administrators as well, there is a Conduct Committee which is responsible for providing guidance to the stakeholders in case of doubt about the application of the Code, as well as the determination and decisions to take when there are verified cases of violation of the established principles. In case the Committee faces situations that may create difficulties of judgment, they must be submitted to the Committee of Human Resources and Ethics and, persisting the impasse, support can be asked to external arbitrator.

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CODE OF CONDUCT

In the last

The Marcopolo’s Code of Conduct, created in 2005, is the result of a study that

three years the

aims to discipline the different situations that occur in the Company life. The Code has the function to guide the actions in the daily work at the Company,

Company has

facilitating the decisions and the relationships among various groups that in-

dedicated 2484 hours to train 8282 employees

DISCLOSURE POLICY AND USE OF RELEVANT INFORMATION AND NEGOTIATION INFORMATION

CAPITAL STRUCTURE

teract with the team of Marcopolo.

Regarding the capital structure, the only alteration

Since its founding, Marcopolo has developed a vision strongly based on values.

in the last three years was a capital increase with

The Standards of Conduct must be reflected in the relationship between people

Marcopolo’s policy of information disclosure aims

100% bonus in shares in 2010.

who are part of the context Marcopolo: employees, shareholders, customers,

to maintain uniformity, simultaneity and transparency of the disclosure of act and facts that involve the business of the Company, as well as establish the procedures that will be adopted for the dissemina-

SHAREHOLDING STRUCTURE IN 2011

tion of information about Marcopolo, including in-

suppliers of products and services, sales representatives, trade unions, profes-

in the programs

sional associations, government, media and community in general.

aimed at the

Therefore, the Code of Conduct is backed on clear principles of good gover-

understanding

nance and is based on practices that are of common knowledge. This concept

of the Code of

has to do with the quality of people’s attitudes and actions, and it may be said

formation that involve relevant acts and facts, and

41,59%

maintaining confidential the undisclosed relevant information.

Shareholders in Brazil

The Negotiation Policy aims to establish the rules and procedures that will be observed by the compa-

that the human being is the major driver of the Corporate Governance. All employees receive a copy of the Code of Conduct when they join the enterprise and they take part on trainings for the knowledge and the practice of the Code of Conduct.

ny, its administrators and other people allowed ac-

32,32%

cessing the relevant information of the negotiations involving securities issued by the company, in order

The Code of Conduct can be accessed at http://www.marcopolo.com.br

Shareholders Abroad

to preserve transparency in the negotiations. The Director of Relations with Investors is responsible for the implementation, monitoring and general

25,63%

administration of those policies, and all the communication between the Company and the CVM and

Group Controller

Stock Exchanges, as well as amongst the Company, the market, investors and analysts.

0,46% Shares in Treasury

20

who participated

21

Conduct.

4


COMUNICATION CHANNELS Marcopolo invests in powerful communication tools and keeps open channels with all its stakeholders.

RELATIONSHIP WITH EMPLOYEES The slogan “Marcopolo, bringing people together” summarizes the company’s desire to improve the quality of people’s lives through the transportation it offers. Internally, the same slogan applies to the initiatives of the Company regarding communication with its employees. Through various means of communication like murals, intranet, internal news paper and special campaigns, Marcopolo has kept its collaborators well informed. Besides, the Department of Internal Communication periodically conducts surveys to evaluate the communication process between the company and its employees, reaching in this ambit 78% satisfaction in Caxias do Sul and 75% in Ciferal in 2011. Communication tools are constantly evolving, with significant changes scheduled for 2012. Contact with the unions is also a constant practice in the Company. Issues that affect the daily lives of the employees are taken into account together with the

5

different unions and subsequently approved between those involved.

5

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COMUNICATION CHANNELS

201

1

1

23

Do diç is ão cam time peo s da nato Cif Con de eral d fute Car heça bol isputa los o no m Pág Ma .4 gni vo dir equ eto Pág .7 r de apre ipe P rH sen oltro , ta re na sult s An ado a Re s Pá ch g. 1 1


RELATIONSHIP WITH INVESTORS

RELATIONSHIP WITH CUSTOMERS

RESEARCH WITH

The relations between Marcopolo and its investors is managed by the Investor Relations

The customer relationship is developed in several ways. By the tradi-

CUSTOMERS

Area. To keep those always in tune with the company, there is a constant interaction

tional Customer Service (SAC) and the Open Channel, with the avail-

through efficient communication channels.

ability of the 0800 702.7070 (Marcopolo) and 0800 707.0078 (Volare),

The Company gives fair and equal treatment to all minorities, whether capital or other

Overall evaluation

polo.com.br and contato@volare.com.br

2009-2011

cy standards, seeking to establish a climate of trust, both internally and in third party

All contacts received are answered or forwarded to the responsible sec-

0 to 10

relations. To meet legal requirements and enhance the information provided to the

tors, and are all registered and followed until their solution within 48

2009 score: 8.42

market in general and in particular to foreign shareholders, the financial statements are

hours. A follow up is also made to measure customer satisfaction with

disclosed under standards established by the International Financial Reporting Stan-

the service.

2011 score: 8.64

interested parties (stakeholders). When disclosing information, it uses high transparen-

dard (IFRS). On the Company’s website (www.marcopolo.com.br) investors have a unique “hot site” with constantly updated information, in Portuguese and English, besides receiving periodic e-mailing with subjects of their interest.

The network of representatives and distributors also constitutes a strong communication channel with customers.

the disclosure of acts and facts involving the business of Marcopolo SA, as well as estab-

zine published by Marcopolo.

ity of undisclosed sensible information.

Annually the company develops the project Bringing Generations Together, which focuses on the

To achieve this broadcasting, the Company’s website features Presentations, Proceed-

integration and relationship with

ings and Editorials, Notice to Shareholders, Announcements, Financial Statements,

clients in Brazil and abroad. The

Documents delivered to the CVM, Relevant Facts, 358 Instruction, Annual Reports,

program aims to bring together

Quarterly Results and Latest Updates.

the sons and daughters of these

The Investor Relations Area holds annual meetings with the Association of Investment

every two years.

another form of relationship, as is the Viajante, the quarterly maga-

including information involving relevant acts and facts, and maintaining confidential-

The survey is conducted

The Club Volare, medium sent quarterly to all customers of Volare, is

The Disclosure Policy aims to maintain consistency, concurrency and transparency in lish the procedures to be adopted for disseminating information about the Company,

5

directly on the company’s website, or by the e-mails contato@marco-

5

partners with the company.

Analysts and Professionals of the Capital Cities Market (APIMEC) in São Paulo, Rio de

Moreover a survey is conducted to

Janeiro and Porto Alegre, as well as “non-deal road” shows in Brazil and Abroad, in

measure the customer’s satisfac-

addition to Marcopolo Day, in which the Company receives analysts and investors at

tion with the products. Clients are

its facilities in Caxias do Sul for a presentation about the company, its products and its

selected from a random drawing.

production process - In 2011 the fifth edition of this meeting was held.

RELATIONSHIP WITH SUPPLIERS Marcopolo’s relationship with its suppliers is guided by the vision of the corporation, values and Code of Conduct, available on the website, falling under the responsibility of the Board of Acquisition and Logistics. The acronym EET (MEC) formed by the initials of the words Experienced, Ethical and Trustworthy, guides the relationship and actions in everyday life. The integrated management of standards, ISO9001, ISO14001, OHSAS18001 and SA8000 aligns the regulatory procedures with suppliers. To strengthen strategic alliances, the Company holds every two years the Suppliers Meeting, as well as consistently using the Supplier’s Portal as an important communication channel. Marcopolo also democratized access to vendors who want to quote indirect materials and services using the Portal. The first contact is made by the e-mail mec@marcopolo.com.br

25


ENVIRONMENTAL PERFORMANCE ORGANIZATIONAL RESPONSIBILITY

The awareness regarding the preservation of the environment stands out as one of the main actions to consolidate the sustainable development of Marco-

The program Recycle by Reusing, since its adop-

polo. The Company and its employees have an im-

tion in October 2001, allows an annual recycling

portant commitment to health, safety, the environ-

of over 250 tons of waste paper from paint insu-

ment and the communities in which it operates.

lation, preserving about 7,000 trees. The project,

The actions regarding the environment have as a

awarded the prizes Ecology Expression 2002 and

priority the respect for nature and the prevention

Top Ecology ADVB 2002, enables the recycling of

and reduction of the impacts on the environment

all waste paper generated during the paint process

through actions and commitment of people, im-

of the vehicles bodies.

provement of the processes and application of ap-

The Continued Management of Solid Waste, im-

propriate technologies aimed at sustainable devel-

plemented in 1999, allows for the reduction of up

opment. With pro-active attitude and professional

to a quarter the environmental liability, and re-

expertise, the Company invests in training and in

cover a third of the materials that previously were

new technologies to control and /or minimize en-

discarded. The process begins with the selective

vironmental impacts resulting from its activities.

collection of waste at source, which are then temporarily stored before being taken to the Waste

POLICY

Processing Unit (UPR) appropriated, licensed by

Programs focused on environmental issues are part

the environmental agency. The UPR aims to add

of Marcopolo’s management policy. The environ-

value to discarded materials, identify possibilities

mental responsibility is an important aspect of sus-

for reuse, promote proper marketing of recycla-

tainability. The company has developed a series of

ble materials, provide the information needed to

programs and tools to oversee the production sys-

control the wastage of materials and promote the

tem. The Marcopolo System for Solidary Production

final disposal on landfill cells for non-recyclable

(SIMPS) constitutes a strategy of industrial compe-

and non-hazardous waste.

tition for growth, market leadership, productivity,

6

ENVIRONMENTAL PERFORMANCE

Marcopolo manages all wastewater generated in

quality, improvement of the working environment

the production process, toilets and the kitchen.

and profitability of products and services. The sys-

Treatment efficiency is guaranteed by our own

tem provides an opportunity to continually im-

laboratory, registered with the environmental

prove the quality of its products, processes and ser-

agency. It is also annually conducted the monitor-

vices, containing impacts on the environment, on

ing of air emissions, thus completing the work of

health and safety of the employees and avoiding

the Environmental Management System.

waste; maintaining a fully integrated chain.

In 2011 the Company received the Preliminary License for a new landfill for non-hazardous in-

The company holds

dustrial solid waste. The objective of this landfill is

the most important

to keep absolute control over the environmental

certification for

liabilities of the company. Moreover, works were

environmental

completed for expansion and modernization of the Ana Rech Wastewater Treatment Station.

management, the ISO 14001 - Environmental Management System.

27

6 5


TRAINING AND AWARENESS

The presentations are formulated in accordance with the requests of the schools and show how the

at raising awareness and sensitize employees on

environmental management happens in Marcopo-

tories the use of electrical energy is predominant. In Rio de Janeiro natural gas is most significant. The

environmental issues. The importance of selective

lo. Whenever possible, students can also visit the

units of Caxias do Sul also harness energy from wood, diesel and LPG.

collection of waste - so that they can be reused,

company and meet the selective collection system

thus avoiding disposal in landfills - is one of the

in various productive sectors, the Residue Station

most prominent items. These events also address

and the Effluent Treatment Plant.

Marcopolo

prioritizes

environmental

matters

The company celebrates Environment Day by al-

through actions and involvement of people, pro-

ways bringing its employees activities like train-

cess improvement and application of appropriate

ings, lectures or distributing tree seedlings, seeds

technologies aimed at sustainable development.

and explanatory folders. In 2011 it held the First Edition of Nature versus Waste, whose purpose was to engage employees in the struggle to tackle waste. To the general public, the Environmental sector promotes activities too, like organizing lectures for school students of elementary, secondary and higher education.

2009

process.

SUPERVISION AND MONITORING

MARCOPOLO

2010

of various tasks performed during the production

Marcopolo units in Caxias do Sul (RS) and Ciferal (RJ) have different energy sources. In southern fac-

MARCOPOLO

2011

the need to identify the environmental impacts

MARCOPOLO

ELECTRICAL ENERGY

WOOD (M3)

DIESEL OIL

NATURAL GAS

GLP GAS

112.331,5

4.480,8

27.733,7

56.069,0

3.689,9

31.113,0

NA

3,5

3.984,8

412,8

147.264,1

6.975,2

49.481,5

72.646,7

4.201,1

40.890,7

NA

844,8

6.564,6

302,5

152.942,2

6.865,4

52.500,2

68.754,2

4.409,3

52.789,0

NA

3.691,9

10.011,2

2.255,9

CIFERAL

CIFERAL

CIFERAL

The Environment Engineering Counseling sector assures the data collection and evaluates compliance with applicable environmental legislation,

ENERGY CONSUMPTION

defines and guides the selective collection of waste

In recent years Marcopolo embedded in its sustainability policy practical actions aimed at reducing

materials, promotes the search for alternatives to

electricity consumption. The set of measures already in force yield a 172 kW reduction, represent-

reduce waste generated in the production process

ing, in figures, savings surpassing R$ 417,500 yearly.

and determines their appropriate disposal.

Among the implemented improvements is the replacement of two compressors with a total power of 225 hp (165 kW) for a device with a power of 200 hp (147.2 kW). Also replaced were two compressors with a total power of 300 hp (220.8 kW) for one with a power of 200 hp (147.2 kW). With these actions, the company has reduced another 92kw in energy consumption and now saves R$

MATERIALS The reduction of material waste during production is constantly pursued by Marcopolo. To achieve the

180 thousand per year.

objectives, which represent financial savings for the company and environmental improvements, the

In 2010 Marcopolo began replacing light fixtures on work environments. 268 units, each contain-

company trains its employees and invests in modern equipment and processes to maximize the utiliza-

ing two 110w fluorescent lamps, were replaced by high performance devices containing two 54W

tion of the raw materials.

bulbs each (T5 model).

The main raw materials used in the production of bus bodies are steel, aluminum and fiberglass compos-

In ramps, workspaces that typically require more lighting, 380 units containing three 110W bulbs

ites. In metals losses are lower, ranging from 13% to 18%. With fiberglass, according to available technol-

each were replaced by 274 high performance luminaries with two 54 w lamps each. These actions

ogy, this rate is around 29%.

decreased consumption by 60 kw, equivalent to R$ 192 thousand per year.

Data from units in Caxias do Sul (RS) shows consumption (in 2011) of 45.6 million kilos (100M pounds) of steel, nearly 7 million kilos (15.4M pounds) of aluminum, and 3.7 million kilos (8.14M pounds) of fiber. All steel scrap is sent for recycling and fiberglass waste is deposited in cells in the appropriate landfill.

WATER SUPPLY

TOTAL OF WATER CONSUMPTION (M3)

Regarding the water supply,

MARCOPOLO

the factories rely on the mains

Steel scrap (pounds)

2011

as the principal source. In Cif-

90.552.110

100.357.620

eral it amounts to 100%. In

12.535.316

13.025.408

14

13

14.855.676

15.373.567

2.609.686

2.635.554

18

17

Fiber consumption (pounds)

7.699.949

8.271.927

Fiber waste (pounds)

2.179.980

2.388.338

28

29

Waste (%) Aluminum consumption (pounds) Aluminum scrap (pounds) Waste (%)

Waste (%)

Caxias do Sul, the units of Ana

wells of third parties 2009

Steel consumption (pounds)

2010

Rech and Planalto have their own wells, properly licensed, serving approximately 27% of

2010

MATERIAL

its needs. 2011

6

ENERGY SOURCES

Marcopolo performs actions and activities aimed

mains

26.856 143.862

own well

10.607

wells of third parties

27.668

mains

145.100

own well

11.750

wells of third parties

26.052

mains t own well

29

CIFERAL

157.551 16.799

51.336

73.832

81.782

6


LIABILITY FOR THE PRODUCT

EFFLUENTS Marcopolo treats all wastewater generated. In Caxias, treatment includes the industrial and sanitary wastewater. In Rio de Janeiro only the sanitary wastewater is treated, industrial wastewa-

ZINC

ter is collected and sent for treatment elsewhere. In the

Following global trends on sustainable activity, the Engineering area was challenged to consider the environmental impact and the occupational health and safety during production and manufacturing of a new car seat. The seat for the new generation of road vehicles, launched in 2009, had its development based on extensive market research, listening to the direct and indirect customers. Thereafter was defined the project entry data, introducing sustainability requirements as criteria for minimizing waste and emissions, final disposal after use and ergonomic adequacy in the implementation phase. The “ecodesign” is an important factor, capable of influencing changes not only in the design per se but in business strategies too, affecting decisions that were not considered in the past. It is noted in this project the attained goal to facilitate disassembly of the kit generating the smallest loss in terms of material, energy and cost. The disassembly

period between 2009 and

process is required during maintenance and/or replacement of parts.

2011 Ciferal sent 300m³ of

The components discarded during the maintenance of the seat and its disassembly at the end of life can be sent for

its industrial effluent for

reuse and recycle according to the types of materials. The average reduction of losses of raw material in the man-

treatment outside.

ufacturing process was 10%. It was also observed a reduction in emis-

NAME

sions, since 60% of welding and QUALITY (mg/l)

2009 2010 2011

gluing operations were replaced by mechanical fixing.

Research and Development

It is noteworthy that the vehicle

Manufacturing and production

aerodynamics of the new genera-

Marketing and promoting

0,232

tion family (G7) provided the signif-

Storage, distribution and supply

0,185

icant contribution of 8% reduction

Use and service

in diesel consumption compared to

Disposal, reuse or recycling

COD

TOTAL SUSPENDED SOLIDS

CHROME

ZINC

15.552

82

82

0,0085

0,178

17.319

82

52,2

0,0175

14.195

Legal limit

52,51 330

37,6

0,0095

125

0,4

2

the previous generation.

INVESTMENTS

EMERGENCIES Over the past three years the units Caxias do Sul and Rio de Janeiro did not record any significant spillage of pollutants in the environment.

ENVIRONMENTAL IMPROVEMENTS In its policy to improve environmental processes and mitigate the impacts resulting from its products and services, Marcopolo invested on the betterment of management and treatment. The Wastewater Treatment Plant of Ana Rech, in Caxias do Sul, has been expanded with the installation of a tertiary treatment unit to reduce phosphorus and nitrogen residues and to convert the

From 2009 to 2011, Marcopolo’s investments in environment protection in Caxias do Sul and Rio de Janeiro totaled R$ 15,006,186.00

WASTE PRODUCTS The units of Caxias do Sul and Rio de Janeiro generated 78,200 tons of waste in the period 2009-2011. Of that total, 85.5% were non-hazardous. The main destination was recycling, accounting for 66%. The remainder has been co-processed, sent to landfill or underwent treatment elsewhere.

physical-chemical treatment from semi-continuous to sequential batch. The investment exceeded

ANO

R$ 1.2 million.

TOTAL WASTE WEIGHT BY TYPE AND DISPOSAL METHOD ( t )

Yet in Caxias do Sul, the company obtained approval from EIA/Rima and a Preliminary License for the installation of the new landfill for non-hazardous industrial solids, extending the project dereplaced by water booths.

TYPE ( t )

veloped by the Waste Processing Unit (UPR). In Ciferal, two dry booths in the painting sector were

HAZARDOUS

HAZARDOUS WASTE

NON HAZARDOUS RECYCLED

Marcopolo also takes practical measures regarding hazardous waste, complying with the stipulations of the Basel Convention. Over the past three years 17.1 thousand tons were given the correct destination. For co-processing went 4500 tons; for recycling 2100 tons; for treatment elsewhere 3900 tons, and 810 tons, those in Rio de Janeiro, were destined to landfill.

DESTINATION ( t )

6

TOTAL OF WATER DISPOSAL AT MARCOPOLO - VOLUME (m3)

YES

COPROSSESSED SENT TO LANDFILL TREATED ELSEWHERE

30

NO

Product concept development

2011

2010

2009

34.416,4

28.680,20

15.404,9

MARCOPOLO CIFERAL

7.293,1

5.283,9

1.777,0

MARCOPOLO

1.503,32

1.257,28

CIFERAL

20.456,1

18.176,2

13.627,9

MARCOPOLO

5.163,85

3.662,76

CIFERAL

18.045,8

15.995,4

10.674,7

MARCOPOLO

3.610,24

3.600,84

CIFERAL

717,8

897,8

1.315,3

MARCOPOLO

852,5

721,81

CIFERAL

3.406,7

MARCOPOLO

3.035,2

2.889,1

2.096,63

595,92

CIFERAL

5.950,4

3.677,9

8,3

MARCOPOLO

107,8

1,47

CIFERAL

31

6


ECONOMIC PERFORMANCE CONSOLIDATED NET

examined by the Audit Committee and by an inde-

The consolidated net income in 2011 of R$ 3,368.9

pendent external audit every quarter. The fiscal and

million represented an increase of 13.6% over the R

financial operational procedures are evaluated by the

$ 2,964.5 million of 2010 and 66.5% compared to

internal audit, which seeks to identify inconsisten-

the R$ 2,023.8 million in 2009. Sales to the domes-

cies and disseminate good practices to control all ar-

tic market grossed R$ 2,456.6 million, 18.1% above

eas of the Company.

the R $ 2,079.7 million from the previous year and

The Executive Board is the body responsible for iden-

77.6% over 2009.

tifying risks and opportunities relevant to the Company. Based on the Strategic Plan it proposes the necessary actions to the Committee on Audit and Risks

EXPORTS

and then implements it, if approved by the Board of

Exports from Brazil, plus overseas business, reached

Directors.

R$ 912.3 million in revenue in 2011. The value evolved 3.1% over the $ 884.8 million of the previous year and 42.4% in relation to 2009.

PENSION The company sponsors a Closed Pension Plan - Mar-

PROCEDURES AND PERFORMANCE ASSESSMENT

coPrev Pension Plan Society - for employees of units of Caxias do Sul. The Benefit Plan is 100% funded by

The Board of Directors assesses, on attended meet-

the employer and accounts for 3.75% of the payroll.

ings, the economic performance of the Company, as

It ensures 40% of the salary, adding to this value the

reported by the chief directors. The results are also

official social security.

VALUE CREATED AND DISTRIBUTED Marcopolo’s direct economic value generated and distributed - including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to the

7

ECONOMIC PERFORMANCE

government and capital providers - is presented on a consolidated basis as follows:

Ă…REA

2011

2010

2009

R$ 1.495.271

R$ 1.311.693

R$ 918.464

Value Added Distribu-

18,31% government

21,40% government

20,01% government

tion (VAD):

45,57% employees

45,02% employees

44,53% employees

Total added value to distribute (in thousands R$)

9,87% shareholders

10,27% shareholders

7,82% shareholders

13,11%third parties

11,03% third parties

20,59% third parties

13,14% retained

12,28% retained

7,05% retained

An IBASE reference table (pages 47, 48 and 49) presents other consolidated social, economic and environmental statements.

33

7


OUTLOOK FOR 2012 The market performance of Marcopolo shows a positive outlook for most of the coun-

Thus, despite the steep in purchases made in 2011 due to the new emis-

tries in which the Company operates. In Brazil, where currently over 70% of the total

sion standards coming into force (Proconve-7 equivalent to EURO 5),

revenue originates from, the foundations of the economy concede an assurance for the

the scenario is still favorable for the sector of bus bodies in the country.

growth of the GDP, although it is not possible to identify clearly the consequences and impacts of the crisis in the Euro zone. The demand for buses in Brazil should continue rising in the coming years. Investments in urban infrastructure in order to improve the mobility of the population have encouraged the renewal of the Brazilian fleet of buses as well as the implementation of new solutions for public transportation. The sporting events this country will shortly host, among which the Confederations Cup 2013, World Cup 2014 and the 2016 Olympic Games, are the main promoters of these investments. In 2012, the factors that should support the demand for buses are: The municipal elections in October (event that usually generates renewal of the urban fleet of buses); The first deliveries of BRT’s busses;

7

There is also favorable financing conditions for capital goods through FINAME BNDES (a financing body). In foreign markets, the outlook for 2012 is also positive. Important deals on exports from Brazil are being signed. Regarding subsidiaries and affiliates, the highlights are still the joint venture in India, where the expectation lies on increasing production and the release of new models; and the Superpolo in Colombia, where the market remains warm. It is also noteworthy that the Marcopolo formalized the acquisition of 75% of the Australian company Volgren, to be consolidated on February first, 2012. According to a statement released by the Company on December 16, 2011 and revised on August 6, 2012, performance expectations for 2012 are: planned investments totaling R$ 220 million; reaching consolidat-

The auctioning of concessions for interstates and international roads organized by the

ed net revenue of R$ 3.8 billion and manufacture 32,500 buses in Brazil

National Land Transportation Agency (ANTT) to occur by the end of this year;

and abroad.

7

The program “Way to School,” by the Federal Government, whose 2011 auction was delayed until July 2012.

35


SOCIAL RESPONSIBILITY The Company and its collaborators exercise social responsibility under the coordination of Marcopolo Foundation (in Caxias do Sul and Duque de Caxias) through various programs and projects. The Foundation also conducts monthly contributions to social institutions related to health and education, highlighting the support to the Oncology service, of the General Hospital in Caxias do Sul, which serves patients of the SUS (Unified Health System). In units outside Brazil, specific actions are performed according to the needs of the local community, with special attention to demands on health and education. Marcopolo, Banco Moneo and Ciferal (RJ) pass 1% of Income Tax Due to the Municipal Fund for the Rights of Children and Adolescents in the cities of Caxias do Sul (RS) and Duque de Caxias (RJ), where the factories are installed.

INFRASTRUCTURE The Marcopolo Foundation provides employees and their families Recreational Venues (in Caxias do Sul and Rio de Janeiro) with modern infrastructure for the development of cultural, artistic and sports activities. Among those the highlights are the Festivals of June and July, dances, tours to touristic attractions and cultural events like Entrevero Farroupilha and the traditional Christmas party, as well as various sports and recreational events. The activities developed by the Foundation to the employees go beyond the boundaries of the factories, promoting quality of life and well-being of each employee and their families in society.

8

SOCIAL PERFORMANCE 37

8


SOCIAL

SPORTS SPORTS ACTIVITIES

PROJECT RECRIA FAZENDO ART EDUCATION

The Marcopolo Foundation believes that the

Since 2004 Marcopolo and the Marcopolo Foundation conduct, in partnership with the Council for the Children and Adolescents’ Rights (COMDICA) and Social Assistance Foundation (FAS), the Project Recria Fazendo Art Education, with the goal to give access to the knowledge and practice of the Arts to vulnerable children and adolescents. 26 NGOs were implemented with workshops of dance, music and acting (36 in total). Also created was the Reolon Center for Popular Culture, benefiting more than 4000 people in the city

sport is very important in employees’ everyday life. The sports activities combine team spirit, healthy habits, competitiveness and better quality of life, which makes the employee feel more motivated and satisfied. The internal championships are annually at-

of Caxias do Sul.

tended by thousands of employees competing

8

in Male and Female Futsal, Football 7, Vet-

COMMUNITY

EDUCATION

A HAPPY DAY

SCHOOLS PROJECT

A Happy Day is an Event held annually to some

Realized since 2002 with schools in the communi-

Social Service), the Marcopolo Foundation has

1500 children from institutions assisted by the Vol-

ty, this project aims to improve the educational en-

been present for more than two decades, par-

unteer Group of Marcopolo, celebrating the Chil-

vironment in order to contribute to the schooling

ticipating in most sports, gaining prominence

dren’s Day. It aims to give children and teenagers

of citizens. The project has already attended several

worldwide.

a different afternoon from everyday life. With the

schools in the city of Caxias do Sul, totaling some

support of volunteers from the company and its

5,000 beneficiaries. Since 2009 the Foundation se-

institutional partners, recreational and cultural ac-

lects the school where the project will take place.

tivities are performed and snacks distributed during the day.

VOLUNTEER PROGRAM This program consists in the realization of social

Activities are defined along with the school board, highlights are the workshops on organization and cleanliness, quality of life, prevention of drug use, teachers’ motivation and more. In 2012 the project will be extended to the community of Duque de Caxias, where Ciferal is located.

and educational activities, training workshops and facilities renovations performed by the employees of Marcopolo in selected institutions in the community.

eran Beach Soccer, Beach Volleyball, Bocce, Pool, Chess, card games and Ping-Pong. In the championships conducted by SESI (Industry

6

SOCCER SCHOOL (EMPLOYEES’ CHILDREN) The futsal and soccer schools serve the employees’ children from six to fourteen years old. Through the practice of sport as a tool to positively help these young people’s development, discipline and interpersonal skills are emphasized.

EVERYONE IN SCHOOL PROJECT This project encourages parents to enroll their six

CULTURE

The Marcopolo Foundation supports this program

to eighteen years old children in educational insti-

with resources to carry out the activities and sup-

tutions and to monitor their performance. Enrolled

port to the volunteers (food, transportation, selec-

students receive school kits with books produced es-

GAUCHO TRADITIONS CENTER MARCO DA TRADIÇÃO

tion of institutions, training in volunteering).

pecially for them.

Founded in 1986 with the motto “Bonds of Unity and Loyalty”, the center aims to preserve the gaucho traditions. About 100 people of all ages take part in these events. The CTG Marco Da Tradição also boasts skilled ropers.

CHILDREN CHOIR It allows employees’ children aged between seven and twelve years the chance to participate in artistic activities, providing cognitive, affective and motor development.

THEATRE GROUP The Theatre Group, formed by participants from various sectors of the company, brings culture and knowledge to employees and their families. In their presentations the group encourages social activities through the collection of donations that are directed to healthcare institutions.

39


EDUCATION AND TRAINING The training programs involve employees in operational areas, both administrative

From 2009 to 2011, the organization invested 563,060 hours in

and technical. In Brazil, the interested employees have the opportunity to partic-

training and development of employees of the manufacturing units

ipate in courses open out of office hours as a way to create opportunities to access

of Caxias do Sul (RS) and Duque de Caxias (RJ). Activities involved

new functions.

an average of 10,488 attendees per year, with 79.7% of trainees

The Education Incentive Program offers scholarships to various forms of education including learning other languages. The Marcopolo Vocational Training School (EFPM), now 21 years old, carries industrial training courses for young people, including those socially vulnerable. They’re offered benefits, the first paid employment and access to a career plan on the company. In these two decades the school graduated 727 students, with 75% working

now operating in the many sectors of the company. In three years each worker received on average 53.68 hours of training. Every new employee begins his journey in the company with the Integration Program. Over the past three years, the company has devoted 76,857 hours to this action. Of that total, 73.9% were conducted in the units of Caxias do Sul and the remainder in Ciferal.

in the Company. It keeps an agreement with the National Industrial Apprenticeship

This program involved 8282 employees, with 63.5% of them ded-

Service (SENAI) for qualifying and support teaching since the beginning of its ac-

icated to Marcopolo and Volare plants in Caxias do Sul. Based on

tivities, as well as a partnership with the Foundation for Social Welfare - FAS – for

the annual average of hirings, which in 2011 reached 10,938 in the

the inclusion of young people participating in the Recria (Network for the Care of

Brazilian units, the annual average of participants who attended

Children and Adolescents of Caxias do Sul).

integration hours was of 26% compared to the total workforce.

Currently, EFPM has four units in Brazil and one in South Africa, along with related MASA. The Brazilian units hold 170 young people in Apprenticeship programs as

8

a way to promote sustainability in the communities where the company operates. The affiliates of Marcopolo abroad hold learning courses to keep young people in

MARCOPOLO 2009, 2010 E 2011 SECTOR

TOTAL TRAINED EMPLOYEES

accordance with the current legislation, promoting the inclusion within the framework of permanent employees whenever possible. In 2011 were also undertaken special training programs for women of the communities, who could then have more chances when competing for the positions offered by the Company. In the EFPM unit of the Reolon Neighborhood in Caxias do Sul, the program for training people with disabilities continued, bringing another 25 employees to the company’s staff.

TRAINING HOURS

AVERAGE/HOUR PER EMPLOYEE

Chief Directors, Executive Directors, Managers and Advisors

34

3.004

88,35

Coordinators and Equivalents

42

6.068

145,63

Supervisors and Equivalents

234

36.755

157,52

Technicians

617

42.274

68,48

Administrative and Auxiliary

827

80.607

97,43

6.367

370.560

58,20

Operational

CIFERAL 2009, 2010 E 2011 SECTOR

TOTAL TRAINED EMPLOYEES

TRAINING HOURS

AVERAGE/HOUR PER EMPLOYEE

Chief Directors, Executive Directors, Managers and Advisors

-------

-------

-------

Coordinators and Equivalents

5

528

105,60

37

828

22,58

Supervisors and Equivalents Technicians

114

1.188

10,42

Administrative and Auxiliary

219

1.409

6,43

19.839

9,96

Operational

1.993

41

8


tal of 11,665 employees with an indefinite

period

8.719

closed the year 2011 with a to-

Marcopolo Ciferal

employment

From the data collected a set of improvement measures was defined by the Board, for imple-

contract, up 6% from the previ-

mentation in the years 2012 and 2013. The implementation has periodic monitoring of its

ous year’s 10,990 and 35% com-

evolution in all areas.

pared with 2009. Southern units amount to 75% of the workforce. 2009

2.946

an average overall satisfaction of 75% in units in Caxias do Sul (RS) and 72% in Ciferal (RJ).

ias do Sul (RS) and Ciferal (RJ)

2.545

mate Survey, applied every two years. The last survey, conducted in October 2011, generated

The units of Marcopolo in Cax-

8.449

The Company’s Employee satisfaction is measured through the Internal Organizational Cli-

TOTAL WORKFORCE

1.604

EMPLOYEE SATISFACTION

JOBS

7.032

LABOR PRACTICES

2010

COMPENSATION AND PLAN TO GRANT OPTION SHARES

TURNOVER RATE

Compensation of employees is composed by two parts, one fixed - linked to the skills and

In 2011 2,508 terminations were recorded in the units of Caxias do Sul (RS) and Ciferal (RJ). In 2010 a

abilities - and the other variable, resulting from achieving the goals of the Profit Sharing Pro-

total of 2,016 and in 2009 1,755. Male employees amounted for 90% of those disconnections.

gram. Salary surveys are conducted periodically in order to assess whether the amounts paid to

Most of the terminations involve employees under 30, representing 68% of the total in Marcopolo,

employees are within the regional standards, allowing the company to remain competitive in the labor market.

2011

and 63% in Ciferal. Employees aged between 30 and 50 account for 29% of terminations in Marcopolo and 33.5% in Ciferal. Those aged over 50 represent 3% in Marcopolo and 3.5% in Ciferal

The Company has a Stock Purchase Option Plan, whose participants are executives at Marco-

8

polo and its subsidiaries (excluding controlling directors), whose main goals are: align participants’ interests with those of shareholders; commit participants with the company’s short, medium and long term results; encourage and foster a sense of ownership, and attract and keep

TERMINATIONS BY GENDER 1.273

1.585 Marcopolo - male

1.248

Marcopolo - female

talent. The Plan is monitored by the HR and Ethics Committee and approved by the Board of Directors.

664

566

Ciferal - male

340 132

10

27

18

2009

Ciferal - female

232

184

2011

2010

TERMINATIONS BY AGE

1.236

Under 30 30 to 50 years

959 866

Over 50

532 491

321

431 321

232

222

185 144 48 Marcopolo 2009

21 Ciferal 2009

42

41

Marcopolo 2010

Ciferal 2010

43

49 Marcopolo 2011

22 Ciferal 2011

8


TURNOVER BY GENDER

COLLECTIVE AGREEMENTS

The turnover of the last three years among male workers revolved around 1.33% to 1.55% in Marcopolo and

The collective bargaining agreements reached

1.8% to 2.19% in Ciferal. Among women indicator falls appreciably: from 0.16% to 0.23% in Marcopolo and

100% of employees

0.05 to 0.09 in Ciferal.

HEALTH AND SAFETY

2,19 2,10

In addition to the compliance with regulations

1,80

on health and safety at work, Marcopolo develops

1,55

1,55

1,33

Marcopolo - male

specific actions with employees to strengthen the

Marcopolo - female

prevention mindset in order to reduce accidents

Ciferal - male 0,16 2009

8

0,20

2010

MARCOPOLO 2009

2010

2011

Health Absenteeism

1,93%

2,05%

2,30%

Frequency Rate

2,19

2,46

2,90

occupational diseases rate

0,03

0,09

0,07

Lost work days rate

22,80

100,69

100,44

Number of deaths

0

0

0

0,09

0,07

0,05

Ciferal - female

0,23

and occupational diseases.

2011

8

CIFERAL* 2009

2010

2011

Health Absenteeism

-

2,28%

3,05%

Frequency Rate

-

8,54

3,08

occupational diseases rate

-

0

0,01

Lost work days rate

-

53,48

13,77

Number of deaths

-

0

0

* Ciferal indicators began being recorded in this method since in 2010.

CAREER DEVELOPMENT * The process of career development

YEAR

2009

2010

2011

Marcopolo

7.032

8.449

8.719

2011, in Caxias do Sul (RS), 81% of

Ciferal

1.064

2.541

2.946

8719 employees underwent evalua-

Marcopolo % Eval.

36,19

58,59

80,98

tion. In Ciferal, the index was 28%.

Ciferal % Eval.

19,58

27,33

27,83

has evolved greatly in the last three years in the units of Marcopolo. In

* The Competence and Skills Assessment Program for the Career Plan is still in the implementation phase in Ciferal.

45


EMPLOYEE INTEGRATION In the last three years Marcopolo has devoted 76,857 hours to the integration of new employees who took part in the programs for entry into the company.

MARCOPOLO INTEGRATION HOURS

2009

2010

2011

Total integration hours

7.001

23.287

26.496

Average of employees annually

6.108

7.812

8.487

762

2.754

1.745

12%

35%

20%

Total No. of Employees trained in Integration % of employees trained in Integration

MARCOPOLO

INTEGRATION HOURS

2009

2010

2011

Total integration hours

3.280

12.160

4.632

Average of employees annually

1.574

2.155

2.451

410

1.520

1.091

26%

71%

44%

Total No. of Employees trained in Integration % of employees trained in Integration

MARCOPOLO

In state

71,80%

618.572.434

In state

70,33%

896.834.538

Outside the state

20,80%

181.464.458

Outside the state

25,40%

323.986.422

7,32%

36.331.817

4,27%

54.367.049

Imports Total 2011

872.700.526

Total 2011

1.275.188.009

CIFERAL

In state

29,94%

60.614.269

Outside the state

70,03%

141.779.682

0,03%

46.661

Total 2011

In state

30,63%

103.955.770

Outside the state

69,30%

235.361.340

0,07%

76.436

Imports

202.440.612

Total 2011

339.393.546

YEAR 2011 MARCOPOLO

CIFERAL

In state

70,46%

1.020.043.579

PURCHASING PROCESS

Outside the state

26,55%

384.280.249

The total amount spent on purchases of products and services by units of Marcopolo in Caxias do Sul, RS and Ciferal

Imports

2,99%

43.235.647

RJ totaled more than $ 1.8 billion in 2011. In comparison with the previous year, the growth was of 11%, over 2009,

Total 2011

it exceeded 73%.

Imports

CIFERAL

Imports

CIFERAL

8

YEAR 2010

YEAR 2009

In state

31,06%

121.884.862

Outside the state

68,50%

268.831.086

0,44%

1.657.890

Imports

1.447.559.475

Total 2011

392.373.838

Marcopolo’s policy is to work with suppliers located near its plants. This is the case of factories of Caxias do Sul, with an average of 75% of the acquisitions made locally (same state). The situation repeats itself in Sao Paulo, where the average is 86%. In Ciferal it happens differently for lack of qualified suppliers close to the unity. Only 31% of purchases are from

CONSOLIDATED RESULTS – IBASE REFERENCE TABLE

Rio de Janeiro. In all units, the remainder is purchased from other Brazilian states. The import of materials occurs only in specific cases, when taken into account the lack of local equipment or excessive

1 - BASIS OF CALCULATION

AMOUNT 2011 (THOUSAND REAIS)

AMOUNT 2010 (THOUSAND REAIS)

local prices over international ones. In 2011, less than 5% of the products used in car bodies were acquired abroad, a

Net Income (RL)

3.368.876

2.964.499

rate that is declining in recent years.

Operating profit (RO)

495.960

441.957

The company works with 3355 suppliers, divided among curves A, B and C. The majority, 87%, integrates the curve

Gross Payroll (FPB)

496.586

421.230

C. To monitor the quality of products and practices adopted by suppliers in relation to human rights, Marcopolo has a

2 - INTERNAL SOCIAL INDICATORS

AMOUNT (THOUSAND)

% OVER FPB

% OVER RL

AMOUNT (THOUSAND)

% OVER FPB

% OVER RL

23.466

4,73%

0,70%

18.352

4,36%

0,62%

138.903

27,97%

4,12%

110.118

26,14%

3,71%

Private pension

10.420

2,10%

0,31%

7.715

1,83%

0,26%

Health

27.057

5,45%

0,80%

21.961

5,21%

0,74%

Safety at work

12.747

2,57%

0,38%

9.752

2,32%

0,33%

1.114

0,22%

0,03%

820

0,19%

0,03%

453

0,09%

0,01%

377

0,09%

0,01%

3.165

0,64%

0,09%

15.334

3,64%

0,52%

474

0,10%

0,01%

117

0,03%

0,00%

22.106

4,45%

0,66%

20.961

4,98%

0,71%

239.905

48,31%

7,12%

205.507

48,79%

6,93%

program of auditing. Over the past three years, the company has audited 79 suppliers. Food Mandatory payroll taxes

Education Culture Training and professional development Daycare or daycare assistance Other Total - Internal social indicators

46

47

8


3 - EXTERNAL SOCIAL INDICATORS

AMOUNT (THOUSAND)

% OVER FPB

% OVER RL

AMOUNT (THOUSAND)

% OVER FPB

% OVER RL

119

0,02%

0,00%

334

0,08%

0,01%

3

0,00%

0,00%

87

0,02%

0,00%

143

0,03%

0,00%

161

0,04%

0,01%

Sports

13

0,00%

0,00%

75

0,02%

0,00%

Food safety and tackling starvation

17

0,00%

0,00%

0

0,00%

0,00%

Other

205

0,04%

0,01%

2.360

0,53%

0,08%

Total contributions to society

500

0,10%

0,01%

3.017

0,68%

0,10%

Taxes (excluding social security contributions)

237.479

47,88%

7,05%

127.427

28,83%

4,30%

Total - External Social Indicators

237.979

47,98%

7,06%

130.444

29,52%

4,40%

Education Culture Health and sanitation

4 - ENVIRONMENTAL INDICATORS

AMOUNT (THOUSAND)

Investments related to production / operations

% OVER RO

% OVER RL

6.780

1,37%

0,20%

0

0,00%

6.780

1,37%

projects

8

% OVER RO

% OVER RL

7.210

1,63%

0,24%

0,00%

0

0,00%

0,00%

0,20%

7.210

1,63%

0,24%

6 - RELEVANT INFORMATION REGARDING

Investments in programs and / or

Total investments in the environment

AMOUNT (MIL)

Regarding the implementation of "annual goals" to minimize waste,

( ) has no targets

( ) has no targets

overall consumption during production/operation and increase the

( ) meets 0 a 50%

( ) meets 0 a 50%

efficient use of natural resources, the company

( ) meets 51 to 75%

( ) meets 51 to 75%

( ) meets 76 a 100%

( ) meets 76 a 100%

5 - WORKFORCE INDICATORS

2011

2010

17.231

16.079

Number of admissions by the end of the year

6.095

7.209

Number of outsourced employees

1.855

2.058

Number of trainees

1.157

830

Number of employees over 45

2.054

1.769

Number of women working in the company

1.967

1.680

Number of employees at end of the year

% of management positions held by women Number of black employees working in the company % of management positions held by blacks Number of people with disabilities or special needs

4,78%

4,60%

746

463

1,25%

1,15%

380

334

2011 AMOUNT (THOUSANDS OF REAIS)

2012 GOALS

41

40,9

994

950

CORPORATE CITIZENSHIP Total number of accidents at work The social and environmental projects developed in the company were defined by

( ) board

( ) board and managers

( ) all employees

( ) board

The company’s standards for health and safety in the workplace were defined by:

( ) board and managers

( ) all employees

( ) all employees + CIPA

Concerning freedom of association, the right to collective bargaining and internal representation of workers, the company:

( ) doesn’t get involved

( ) follows ILO standards

The pension plan covers:

( ) board

The share of profits or results includes:

( ) board

( ) board and managers

( ) all

( ) board and managers

( ) all employees

( ) all

( )encourages and follows ILO standards

( ) doesn’t get involved

( ) follows ILO standards

( ) encourages and follows ILO standards

( ) board and managers

( ) all

( ) board

( ) board and managers

( ) all

( ) board and managers

( ) all

( ) board and managers

( ) all

employees ( ) board

employees

employees

employees + CIPA

employees

employees

When selecting suppliers, the same ethical standards and social responsibility standards adopted by the company:

( ) do not apply

( ) are suggested

( ) are required

( ) do not apply

( ) are suggested

( ) are

Regarding the participation of employees in voluntary work programs, the company:

( ) doesn’t get involved

( ) supports

( ) organizes

( ) doesn’t get involved

( )

( )

supports

organiza e

Total number of complaints and criticism from consumers

To the company 2944

To the company 1.472

no Procon

In Court

00

10

To the PROCON 100%

In Court

% of complaints and criticisms addressed or resolved:

and encourages

To the company 100%

To the PROCON (consumer protection entity) 01 To the PROCON 100%

In Court 16

In Court 56.2%

To the company 100%

required

incentiva

100%

Value created and distributed see page 33 7 – FURTHER INFO

The data shown in the table consolidate the results of Marcopolo companies in Brazil and abroad. Responsible for the information provided: Ademar Baroni - ademar.baroni@marcopolo.com.br (54) 2101.4604.

48

49

8


POINTER

DESCRIPTION

PAGE

A message from the Board

4 and 5

Organization Name

8 and 9

Primary brands, products and/or services

9, 11 and 12

Operational Structure

29

Location of headquarters

55

Number of countries where the organization operates

11

Type and legal nature

9

Markets served

11

Size of organization

9

Awards received

14 and 15

Period covered by the report

5 and 7

Report release cycle

7

Contacts for questions

55

Process for defining report content

5 and 7

Report limits

5 and 7

Limitations regarding scope or boundary of the report

5 and 7

Joint ventures, subsidiaries, leased facilities,

11

outsourced operations and other organizations

7

Data measurement techniques and the bases of calculation

50 and 53

STRATEGY AND ANALYSIS

ORGANIZATIONAL PROFILE

PARAMETERS FOR THE REPORT

Table identifying the location of information in the report GOVERNANCE, COMMITMENTS AND ENGAGEMENT Governance Structure

16 and 20

Number of independent or non-executive members of the highest govern-

18 and 19

ance body

9

GLOSSARY

Mechanisms by which shareholders and employees provide recommenda-

23 and 24

tions or directions to the highest governance body Link between compensation for members of the highest governance body

20

and the performance of the organization Process in place at the highest governance body to ensure conflicts of

20

interest are avoided Process for determining the qualifications and expertise of members of

17

the highest governance body to define the company’s strategy on economic, environmental and social related issues Statements of mission and values, codes of conduct and principles

10 and 21

Procedures of the highest governance body for overseeing the identifica-

20 and 21

tion and management of economic, environmental and social related issues Self-evaluation of the performance of the highest governance body

51

10 and 20

9


POINTER

DESCRIPTION

PAGE

POINTER

Explanation of how the organization applies the precautionary principle

17 e 20

ENGAGEMENT WITH STAKEHOLDERS

Administration methods HR2

Relationship of stakeholder groups engaged by the organization

Nothing to declare

Basis for identification and selection of stakeholders with whom to engage:

Nothing to declare

Approaches to stakeholder engagement

Nothing to declare

Key topics and concerns that have been raised through stakeholder engagement

Nothing to declare

46 HR2 Contractors and suppliers that have undergone screening on human

46

rights and the taken actions HR3 Total hours of employee training on policies and procedures concer-

HR3

46

ning aspects of human rights relevant to the given operations, including the percentage of employees who received the training

HR4

HR5

HR4 Number of incidents of discrimination and actions taken

zero cases

Operations identified in which the right to exercise freedom of association

zero cases

and collective bargaining may be at significant risk, and actions taken to support these rights

GRI INDEX HR6

ECONOMIC PERFORMANCE INDICATORS Administration methods

9

PAGE

SOCIAL INDICATORS FOR HUMAN RIGHTS

COMMITMENTS TO EXTERNAL INITIATIVES

32 to 35 and 47 to 49

EC1

Direct economic value generated and distributed

33

EC2

Coverage of the Obligations of benefit pension plan

Not available

EC3

Coverage of the Obligations of benefit pension plan

33

EC8

Development and impact of infrastructure investments and services provided primarily for public benefit

Not available

Understanding and describing significant indirect economic impacts, including the extent of impacts

Not available

EC9

DESCRIPTION

ENVIRONMENTAL PERFORMANCE INDICATORS

HR7

Operations identified as having significant risk for incidents of child labor,

Operations identified as having significant risk for incidents of forced/com-

26 to 31

100%

and procedures concerning aspects of human rights that are relevant to the given operations

HR9

Total number of incidents of violations involving rights of indigenous

Do not apply

people and actions taken

SOCIAL INDICATORS FOR SOCIETY Administration methods

Administration methods

zero cases

pulsory labor, and measures taken to contribute to the elimination of such Percentage of security personnel trained about the organization's policies

HR8

zero cases

and measures taken to contribute to the elimination of child labor

37

SO1

Programs and practices that assess and manage the impacts of operations on communities

36 to 39

EN1

Materials used by weight or volume

28

SO4

Actions taken in response to incidents of corruption

No cases

EN5

Energy saved due to conservation and efficiency

29

SO6

Total value of financial and in-kind contributions to political parties

There is no policy

EN7

Initiatives to reduce indirect energy consumption and reductions achieved

Not available

SO7

Number of lawsuits for unfair competition

Nothing to declare

EN8

Total water withdrawal by source

29

SO8

Description of significant fines and total number of non-monetary sanctions

Nothing to declare

EN21

Total water discharge by quality and destination

30

SOCIAL INDICATORS RELATED TO PRODUCT LIABILITY

EN22

Total weight of waste by type and disposal method

31

Administration methods

EN23

Total number and volume of significant spills

30

PR1

Policy for preserving customer health and safety during use of the product

31

EN24

Weight of transported, imported, exported, or treated waste deemed hazardous under the Basel Convention

30

PR2

Non-compliance related to the impacts of products and services

Nothing to declare

31

Non-compliance related to the labeling of products and services

Nothing to declare

EN26

Initiatives to mitigate environmental impacts of products and services and extent of impact mitigation

PR4 PR7

Incidents of non-compliance related to products and services communication

Nothing to declare

EN28

Monetary amount of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations

31

PR8

Complaints regarding breaches of customer privacy

Nothing to declare

PR9

Total investments and environmental protection expenditures by type

31

Fines for non-compliance concerning the provision and use of products and services

Nothing to declare

EN30

31

SOCIAL INDICATORS RELATING TO LABOR PRACTICES AND DECENT WORK Administration methods

40 to 45

LA1

Total workforce by employment type, employment contract and region

43

LA2

Total number and rate of employee turnover by age group, gender and region

43

LA4

Percentage of employees covered by collective bargaining agreements

45

LA7

Rates of injury, occupational diseases, lost days, absenteeism and work-related fatalities by region

45

LA9

Topics related to health and safety covered in formal agreements with trade unions

The agreements created no demands

LA10

Average hours of training per employee/year by category

41

LA12

Percentage of employees receiving regular performance and career development analysis

45

52

53

9


ADDRESS FOR CONTACTS MARCOPOLO – UNIDADE ANA RECH Av. Rio Branco, 4889 – Bairro Ana Rech 95.060-650 – Caxias do Sul – RS – Brasil Phone: (+55) 54 2101.4000 Open Channel – www.marcopolo.com.br

SUSTAINABILITY REPORT MARCOPOLO 2011 DEVELOPMENT Department of Internal Communication GENERAL DIRECTOR José Rubens de la Rosa SUSTAINABILITY COMMITE Eliana Zanol de Oliveira – Environmental engineering Irina Eberhardt – Human resources Thiago Arrue Deiro – Relationship with investors EDITION AND PRODUCTION Adriana Silva Comunicação & Conteúdo GRAPHIC DESIGN Cyclop Propaganda + Design PRINTING

10

CORPORATION INFO

Cromo Gráfica e Editora Ltda 500 copies – August 2012 PHOTOGRAPHY Maryo José Piardi Franzem Julio Soares/Objetiva Arquivo Marcopolo CONTACT ri@marcopolo.com.br recursoshumanos@marcopolo.com.br FREE DISTRIBUTION We thank all the professionals at Marcopolo and Ciferal who contributed to this report.

This publication is the responsibility of Marcopolo S.A.

55

10


www.marcopolo.com.br OnibusMarcopolo

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