The belief that it is possible to grow in a sustainable manner and engage its whole relationship network in practices that promote the construction of a better world has been an integral part of Algar Telecom’s culture since its inception. That belief is shared by all the companies belonging to Grupo Algar, which is a signatory to the Global Compact, an initiative developed by the United Nations Organization (UNO) to encourage the business community to adopt values related to human rights, work relationships, the environment and the fight against corruption.
At Algar Telecom, these values are put into practice through programs focusing on two essentially complementary areas – the environment and education.
Environmental Program
Three principles serve as guidelines for the initiatives, campaigns and projects within Telecom Verde (Green Telecom), Algar Telecom’s environmental program. The first is the search for new special environmental processes that, once incorporated into the Company’s routine operations, will allow it to continue growing while reducing the use and stopping the waste of environmental resources.
The second principle is what the Company calls Influência Verde (Green Influence), according to which the initiatives must have a far-reaching scope so as to encourage the Company’s whole relationship network (associates, the community, clients and suppliers) to contribute to environmental preservation continuously as well.
Finally, the projects must fit into the effort to improve Algar Telecom’s processes so that the Company can comply with legislation and obtain the environmental certifications relevant to its core business. Over the last three years, the Company has paid no fines and received no non-monetary penalties due to non-compliance with environmental laws and regulations. Additionally, it was recommended for the ISO 14001 certification in late 2011 after undergoing the whole corresponding audit process. The Company was certified in early 2012.
In order to disseminate the environmental culture among all its associates more quickly, the Company has turned the involvement in environmental causes into a goal connected to the bonus that is part of associates’ variable compensation. The result could not have been better: in the first year of the program, in 2011, 100% of the associates achieved their goals.
The achievements of the main Telecom Verde projects in 2011 are described below. They show how environmental sustainability is a natural extension of the Company’s values. The aim of the Company’s projects is to effectively help promote environmental awareness among its associates and in the communities in which it is present. These initiatives are not intended to generate financial returns; on the contrary, they are focused on far-reaching and permanent achievements, connected to health and well-being. As a result of this policy, Algar Telecom was ranked among the 20 Brazilian companies that invest the most in the environment by Época Magazine in September 2011.
Algar Telecom allocated R$ 535,559.34 to environmental initiatives in 2011. This amount was invested in preservation, awareness and energy efficiency projects, among others. A total of R$ 8,561.00 (1.6%) was spent in waste disposal. The goal for 2012 is to describe the investments in detail, broken down by type of initiative.
Natureza em Conta (Nature into Account, a wordplay with the word “conta”, Portuguese for both "bill" and "account")
This project is geared to fixed-line phone, mobile phone, Internet access and TV clients, and the purpose is to reduce the use of tonnes of paper. Those who choose to receive their bills in electronic format are given an extra 50 minutes per month. Clients paying their bills automatically from their checking accounts receive another 50-minute bonus. Since the program was launched in 2010, 100,000 bills have already been converted, 16% of which during 2011. The initiative saved the Company 1.2 tonnes of paper in 2011.
Bônus Verde (Green Bonus)
In 2011, the Company ran a campaign in which clients surrendering their mobile phones at points of sale received a R$ 50.00 bonus to purchase new phones. The goal is to dispose of the rising volume of electronic waste properly. In 2011, 3,523 units were collected.
Eco Ponto (Eco Point)
It is a selective waste collection point installed at the Algar Telecom Administrative Center to receive solid waste brought by associates and community members. During the year, 11.2 tonnes were collected and sent to Cooperativa de Recicladores de Uberlândia (Coru) (Uberlândia Recycling Workers’ Cooperative).
World Car Free Day
This initiative occurred on September 22, 2011 to reduce the second most important source of Greenhouse Gas Emissions (GGE) by Grupo Algar’s companies, which is its associates’ movements. By joining forces, Algar Telecom’s and its subsidiary Algar Tecnologia’s associates prevented 175 tonnes of CO2e from being released into the atmosphere.
Car Pooling
GGEs are also the focus of this permanent program. There are twelve carpool groups (each in a different area) composed of associates who commute to work together every day. There is a specific, duly marked area in the Administrative Center parking lot for associates participating in this initiative. Associate commuting is the Company’s second largest source of GGEs.
Iniciativa Verde (Green Initiative) Cultural Contest
This initiative focuses on journalists, writers, university students and bloggers who wrote, shared or posted reports and original educational papers about environmental sustainability practices during 2011. There were four winners – among 54 entries –, each in one of the following categories: Brazilian press, regional press, university and social media. The initiative was widely covered by the press and gave away over R$ 30,000 in prizes, including a trip to Switzerland.
Telefone Verde (Green Phone Number)
Since 2011, Algar Telecom has had the Telefone Verde hotline: 4005-9912. Available to society as a whole, the number is a communication channel to inspire people to adopt sustainable practices that can change the planet’s future. Through this channel, the whole community can make suggestions, complaints and proposals related to environmental sustainability issues at the cost of a local call. These and other initiatives can be found on www.ctbc.com.br/sustentavel.
Energy Efficiency Week
Other highlights of the Environmental Program that had very positive results in 2011 were the Energy Efficiency Week, the Environment Week and, externally, Triângulo Music, the largest music festival in the so-called Minas Gerais State Triangle. Sponsored by Algar Telecom for the sixth straight year, the event fit into the Influência Verde concept in all of its aspects, starting from the facilities named after the oceans to raise awareness of the need to save water. The initiative allowed collecting total of 540 kg of recyclable plastic material and 1.1 tonnes of food for four charities.
Boi na Linha Project
This project, which involves associates and partners from the community, was designed to allow disposing of pay phone domes beyond recovery in a socio-environmental manner. The fiberglass domes are duly treated and become feed troughs for cattle. The project was one of the highlights of the Algar Inovação 2011 Exhibit, and event showcasing 65 innovative Algar Group projects at UniAlgar.
Tree Planting
Under Programa de Integração de Novos Talentos (Pint) (New Talent Integration Program), all new talents joining the Company plant a tree and the other associates are encouraged to do the same, in addition to committing themselves to the growth of the tree. More and more associates are becoming involved in initiatives like this. At the close of 2011, Algar Telecom’s associates had planted 4,236 trees (versus 1,996 in 2010) in four Brazilian States: Minas Gerais, São Paulo, Paraná and Goiás. This is another initiative contributing to the GGE reduction and compensation targets.
Power Consumption Reduction
The energy efficiency initiatives were stepped up during the year. New technologies that require no generators and simple habits, like programming monitors to switch off automatically after remaining idle for 30 minutes, allowed reducing the total power consumption by 3.2%. The 3% target set for 2011 was achieved in ten months. The challenge for 2012 is a 4% decrease, or 2.1 million kWh.
Indirect Energy Consumption by Source
Algar Telecom consumed 155,613 kWh of electric power from non-renewable sources and another 58,365 kWh from renewable sources in 2011. In 2010, consumption came to 158,077 kWh and 52,330 kWh, respectively. Overall, 213,978 kWh was consumed versus 210,407 kWh in 2010. The 1.7% higher volume is explained by the expansion of Algar Telecom’s activities. Nevertheless, a careful examination of these figures shows that the energy efficiency initiatives had a positive impact on the total reduction of energy consumption in 2011.
The fact that the target was achieved in just ten months reflects the different initiatives that started being looked into as a group in 2010, after the reduction targets were mapped and set. The efficiency projects involve replacing obsolete air conditioning equipment by new equipment with more modern technology, standardizing adjustment temperatures for the air conditioning systems of all sites and deactivating idle equipment automatically, as well as more specific projects such, as the upgrade of the store at the shopping mall in Franca, in the State of São Paulo, in which LED lighting was installed in 2011.
| Energy saved due to conservation and efficiency improvements. | |
|---|---|
| Initiative | Total energy saved* |
| 2010 initiatives | |
| Temperature Increase Project | 193 |
| Compact range unit replacement | 941 |
| Chiller replacement | 1,049 |
| Lead Lag Project | 51 |
| Autopower off Project | 79 |
| TDMA Project | 46 |
| CDMA Project | 6 |
| 2011 Initiatives | |
| Temperature Increase Project | 708 |
| Compact range unit replacement | 994 |
| Chiller replacement | 1,361 |
| Lead Lag Project | 932 |
| Autopower off Project | 21 |
| CDMA Project | 288 |
| Meeting room power switches | 6 |
| Franca store upgrade | 74 |
| Air-conditioning at the Ibiraci Site | 25 |
| EcoComutação Project | 35 |
| Verde Unix Project | 111 |
| Total saving(*) | 6,919 |
Performance of Other Renewable and Non-renewable Energy Sources
Algar Telecom did not set any targets for consumption from other renewable and non-renewable energy sources in 2011.
| In Gj | 2010 | 2011 |
|---|---|---|
| Non-renewable | ||
| Diesel oil | 2,854,137 | 3,006,985 |
| Gasoline | 6,861,982 | 8,015,103 |
| Renewable | ||
| Ethanol | 4,266,840 | 1,183,453 |
Water Consumption
Water consumption totaled 56,196 m3 in 2011, considering surface water, ground water and supplies from water utilities. Water sources significantly affected by withdrawal of water – seven ground and nine surface sources – are not designated as a protected areas. Algar Telecom has no data for the size of the basins used. The 2012 target is to decrease water consumption by 3%.
| Total water withdrawal by source. | |||
|---|---|---|---|
| 2009 | 2010 | 2011 | |
| Surface water, including water from wetlands, rivers, lakes, and oceans | ND | 15,663 | 20,896 |
| Ground water | ND | 8648 | 8345 |
| Rainwater | ND | ND | ND |
| Waste water from another organization | ND | ND | ND |
| Municipal water supplies or other water utilities | 19,535 | 33,680 | 26,955 |
Land Use
The Company is not present in permanently protected areas or conservation units. However, it has biodiversity conservation programs that include the recovery of damaged land and the planting of saplings of Cerrado area native species. Additionally, Algar Telecom has environmental education programs for associates, suppliers and partners.
Between 2010 and 2011, ten hectares of damaged land was recovered through the planting of about 5,000 native species saplings. The Company’s target for 2012 is to plant over 3,000 saplings, recover two springs, create an area for wild animal release jointly with Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis (Ibama) (Brazilian Institute of Environment and Renewable Natural Resources) and produce up to 5,000 saplings of Cerrado native species.
Greenhouse Gas Emissions (GEE)
Algar Telecom reduced its CO² emissions by 4.1% in 1H11 in comparison to 1H10. The following sources were considered: cooling gases, stationary combustion and combustion from the Company’s own car fleet (scope 1), electricity (scope 2) and air travel (scope 3).
Total Direct and Indirect Greenhouse Gas Emissions by Weight.
| Direct emissions | |||
| Substance | 2009 | 2010 | 2011 |
|---|---|---|---|
| Generation of electricity, heat or steam (EN3) | ND | 2,987 | 608 |
| Other combustion processes | ND | 2,107 | ND |
| Physical or chemical processing | ND | ND | ND |
| Transportation of materials, products and waste | ND | ND | ND |
| Venting | ND | ND | ND |
| Fugitive emissions | ND | ND | ND |
| Total | ND | 5,094 | 608 |
| Indirect Emissions (EN4) | |||
| Substance | 2009 | 2010 | 2011 |
|---|---|---|---|
| Land transportation | ND | 802 | 62 |
| Solid waste | ND | 2 | 1 |
| Air transportation | ND | 442 | 124 |
| Office and advertising paper consumption | ND | 25 | 3 |
| Electricity consumption | 29 | ||
| Stationary – shared combustion | 5 | ||
| Total | ND | 1.305 | 190 |
Other Relevant Indirect Greenhouse Gas Emissions
| Substance | 2009 | 2010 | 2011 |
|---|---|---|---|
| Stationary combustion (tonnes of CO2e) | ND | 148 | 138 |
| Land Transportation – own fleet (tonnes of CO2e) | ND | 562 | 318 |
| Cooling gas use (tonnes of CO2e) | ND | 21 | 11 |
To achieve the 2011 results, Algar Telecom undertook a series of initiatives, like installing an automatic lighting shut-off system, replacing metal-halide lamps by more efficient (LED or fluorescent) lamps, replacing fleet vehicles and even encouraging associates and contractors to reduce or optimize their daily mileage, which resulted in the Carona Legal program. The 2012 target is to reduce CO2 emissions by 10% in relation to the 2010 figures.
| Initiative | Reduction achieved | Area in which the initiative was developed | Year |
|---|---|---|---|
| 1 –Drop in demand for room lighting | 3% | Algar Telecom | 2011 |
| 2 – Drop in consumption/specific emission in room lighting | 6% | Algar Telecom | 2011 |
| 3 – Drop in consumption/specific emission in transportation | 0,4 | Algar Telecom | 2011 |
| 4 – Drop in consumption/specific emission in room air conditioning | 0,9 | Algar Telecom | 2011 |
| 5 – Drop in consumption/specific emission in room lighting | 1,5 | Algar Telecom | 2011 |
| 6 – Drop in consumption for room air conditioning | 3 | Algar Telecom | 2011 |
| 7 – Drop in demand for transportation | 0.003 | Algar Telecom | 2011 |
| 8 – Drop in consumption/specific emission in transportation | 0,4 | Algar Telecom | 2011 |
| 9 – Drop in water consumption | 6 | Administrative Center | 2011 |
Emissions of Ozone-depleting Substances (By Weight)
In 2010, Algar Telecom’s initiatives led to emissions of 144 tonnes of monitored gases (CO2e). In 2011, the volume of emissions fell to 72.11 tonnes.
Waste Management
The chart below shows Algar Telecom’s total waste management over the last two years. The reason for the rise in 2011 in relation to 2010 is that Algar Tecnologia reported these data last year, unlike in the previous year. The Company recorded no significant spills in the last two years. The target for 2012 is to have no spills.
Total Weight of Waste
| 2010 | ||
|---|---|---|
| Type | Weight | Describe the disposal method |
| Non-recyclable | 3,955 | Waste is stored temporarily at an Ecoponto (a place at the Company for waste storage). A service provider transports and disposes of it in a landfill. |
| Reuse | ND | ND |
| Recyclable | 9,864 | Waste is stored temporarily at an Ecoponto (a place at the Company for waste storage) and sent to a recycling company later. |
| Total | 13,819 | |
| 2011 | ||
|---|---|---|
| Type | Weight | Describe the disposal method |
| Non-recyclable | 148,885 | Waste is stored temporarily at an Ecoponto (a place at the Company for waste storage). A service provider transports and disposes of it in a landfill. |
| Reuse | ND | |
| Recyclable | 106,905 | Waste is stored temporarily at an Ecoponto (a place at the Company for waste storage) and sent to a recycling company later. |
| Total | 255,790 | |
Hazardous Waste Disposal
Algar Telecom disposed of about 18 tonnes of class I (hazardous) waste, including electronics, pay phone domes and air conditioners, in 2010. In 2011, that amount stood at 160 tonnes. The considerable increase is explained by the replacement of the battery bank, which occurs every two years. In addition, the environmental program was introduced in 2010. Therefore, the measuring procedures had not been fully established yet, so there could be a margin of error. In 2012, the improved measuring procedure for hazardous waste disposal may lead to even higher figures. Class I waste also includes light bulbs, 2,250 of which were disposed of in 2011 versus 1,084 in 2010.
The Company also has collection points for phone cards, batteries, battery chargers and mobile phones. After sorting them out and returning recyclable materials to producers, the recycling project disposes of potentially hazardous components appropriately. In 2011, Algar Telecom also disposed of three tonnes of batteries, battery chargers and mobile phones, as well as 350,000 phone cards, in the correct manner.
Product and Package Recovery
Algar Telecom also runs an awareness-raising campaign to encourage clients to return mobile phones no longer used. Since these devices are considered potentially hazardous, the Company takes charge of reverse logistics, disposing of each type of equipment in the correct place, all of which have a disposal flow and certification.
| 2010 | |||
|---|---|---|---|
| Products | Total of phones sold | Total of phones collected | % |
| Number of phones | 45,000 | 5,500 | 8.18 |
| 2011 | |||
|---|---|---|---|
| Products | Total of phones sold | Total of phones collected | % |
| Number of phones | 78,000 | 7,500 | 8.18 |
Environmental Impact of Transportation Systems
The most significant environmental impact of transporting products and materials is CO² emissions due to fuel consumption. Algar Telecom’s target for 2012 is to decrease greenhouse gas emissions by 3%. The data posted herein are based on the 1H11 inventory since data for 2H11 are still being collected.
| Data (2010) |
|---|
| Transportation of products and services: 562 tonnes of CO2e |
| Associates’ movements: 641 tonnes of CO2e |
| Data (2011) |
| Transportation of products and services: 318 tonnes of CO2e |
| Associates’ movements: 186 tonnes of CO2e |
Supplier Training
Algar Telecom seeks to establish partnerships with suppliers that are also committed to sustainability. In 2011, an environmental provision was included in the contracts, which already addressed issues like documentation, child labor and slave labor. The Company offered a course specially designed for suppliers to ensure effective adherence to the new rules.
Educational Programs
Algar Telecom considers education an efficient tool to ensure the sustainability of future generations. As a result, all its sustainability projects focus on developing human potential and are widely announced. The internal environmental education and citizenship initiatives are announced on a blog and on an environmental communication portal for associates. The e-Learning platform is another important tool to share information and knowledge – from technical training to sustainability issues.
In turn, Instituto Algar, an Organização da Sociedade Civil de Interesse Público (OSCIP) (Public Interest Civil Organization) that receives donations from all Grupo Algar’s companies, has been in charge of the educational investments geared to the community at large for 17 years. In 2011, Algar Telecom contributed R$ 2.3 million of the R$ 2.8 million received by Instituto Algar. These funds were allocated to projects developed jointly with 108 public schools in eleven cities and towns in four States (São Paulo, Minas Gerais, Goiás and Maranhão), involving about 500 educators and benefiting over 10,000 students. The Company’s associates are also encouraged to participate as volunteers in the program, which involves continuing education activities for educators and students to improve reading and writing skills, as well as promote digital inclusion.