Full version - Mercedes-Benz
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Full version - Mercedes-Benz
Sustainability Report Sustainability Report Sustainability Report Contents About this Report 5 Strategy and Management Message from the President 6 Management Structure 54 Strategic Objectives 56 PROCONVE P7 - Euro 5 59 MB Trucks #1 - MBBras Turnaround 60 Management of Targets 62 Truck Operating System (TOS) 62 Investments65 Mercedes-Benz Vision, Mission and Values Profile of Mercedes-Benz History of Mercedes-Benz Awards and Recognitions 10 11 17 24 Products and Services Global brands of the Daimler Group 33 Products Manufactured and Sold in Brazil (including launches in the 2012-2013 biennium)35 Services48 Sustainability at Mercedes-Benz do Brasil The Concept of Sustainability Operating and Financial Performance Environmental Performance Social Performance and Stakeholder Relationships 68 69 72 GRI Index 124 Credits and Contacts 130 94 2012/2013 Sustainability Report 3 Mercedes-Benz’s 2012/2013 Sustainability Report is published by Mercedes-Benz do Brasil Ltda., prepared in accordance with the guidelines of the Global Reporting Initiative (GRI) About this Report GRI 2.6 3.1 3.2 3.3 3.5 3.6 3.7 3.8 3.10 3.11 Mercedes-Benz’s 2012/2013 Sustainability Report is published by Mercedes-Benz do Brasil Ltda., prepared in accordance with the guidelines of the Global Reporting Initiative (GRI), an international reporting standard that encompasses a set of indicators about economic, social and environmental practices, management and performance. The information was compiled through an internal process coordinated by the Environmental Management area, in partnership with the Corporate Communications area, involving management and performance data submitted by representatives from various areas of the Company. By adopting the GRI guidelines, the organization is facilitating the comparability of its data with other businesses that also adopt the same standard, as well as the comparability of its own data over different periods. It also creates an opportunity to monitor performance indicators, establish transparent communications with stakeholders and demonstrate a commitment to sustainable development. This publication provides an overview of the achievements of Mercedes-Benz do Brasil in 2012 and 2013 – from January 1 2012 to December 31, 2013 – covering its operations at the three units located in Brazil: São Bernardo do Campo (SP), Campinas (SP) and Juiz de Fora (MG). The scope of this report corresponds with level C of the GRI reporting structure, which is composed of three different levels (A, B and C) relative to the number of reported indicators and other factors. This publication will be released biannually and is available on our website (www.mercedes-benz.com.br), in Portuguese and English. 2012/2013 Sustainability Report 5 Message from the President GRI 1.1 Dear reader, it was with great pleasure that I was sworn in as the President of Mercedes-Benz do Brasil in early 2013. I am aware of the challenges that the Company is facing and I am counting on the help of everyone, including my new colleagues in management, to overcome these challenges and once again put Mercedes-Benz do Brasil on a path of sustained growth. I know that 2012 was not an easy year. The implementation of Euro 5, a law establishing the exhaust emissions limits for light-duty vehicles, impacted the market as a whole. The result was a decline in our production when compared with 2011, which also affected our sales and exports. Our concern over environmental preservation issues – one of the focus points of our investments in research and development – led us to create innovative technologies capable of meeting and exceeding legally established guidelines. Our trucks and buses have already been adapted and they therefore already generate lower emissions. After the uncertainties following the implementation of Euro 5, the market once again began to grow, as did Mercedes-Benz do Brasil. We increase our production and were also able to increase sales and exports. We have not yet reached our previous levels, but we’re working towards this through the implementation of the MB Trucks #1 - MBBras Turnaround Project. This is the Company’s most important ongoing project, requiring an effort on behalf of everybody involved to achieve the goal of regaining our standing as the leader of the truck market in Brazil. One of the achievements in this respect came in the form of R$1 billion to be invested in our truck and bus factories over the next two years. We’re going to direct these funds to researching and developing new products and technologies, the production of the Actros heavy-duty truck line in Brazil, process improvements and the modernization of production areas, among other actions. These investments will represent a major step towards achieving our growth objectives. Another important point is the construction of an automobile production factory in Brazil, one of the fastest growing markets worldwide. Our new unit, installed in Iracemápolis, São Paulo, is expected to launch operations in 2016. Another achievement that should also be celebrated is the publication of this second sustainability report under the Global Reporting Initiative (GRI) guidelines, which reinforces our commitment to the issue. In addition to seeking to develop vehicles that are environmentally more responsible, we also analyze the manner in which they are produced and how we might mitigate the impacts of that production. In addition, we seek to act as change agents in society through social responsibility projects. Our actions in these fields are reported in the following pages. Finally, I would like to thank all of the stakeholders with whom we relate for their confidence in Mercedes-Benz do Brasil. Special thanks also go out to our professionals, who have been instrumental in helping us through these challenging times. I hope that you all enjoy this report. Philipp Schiemer President of Mercedes-Benz do Brasil & Head of Latin America We will invest R$1 billion in our truck and bus factories over the next two years. We’re going to direct these funds to researching and developing new products and technologies, the production of the Actros heavy-duty truck line in Brazil, process improvements and the modernization of production areas, among other actions 2012/2013 Sustainability Report 7 Mercedes-Benz Mercedes-Benz, a Daimler Group company, is the largest manufacturer of trucks and buses in South America. 2012/2013 Sustainability Report 9 Profile of Mercedes-Benz GRI 2.1 2.2 2.3 2.4 2.5 2.7 2.8 Vision, Mission and Values Vision Our goal is to set the standard as a Brazilian producer and supplier of the best commercial vehicles, components, automobiles, parts and services. We seek to meet the needs and expectations of our customers and create value for our shareholders and other stakeholders with whom we interact. Mission Our mission is to be recognized as the leading manufacturer and global supplier of commercial vehicles, automobiles, components, parts and services. We work to maintain our standing as the leading supplier of a complete line of high quality commercial vehicles and related services that exceed customer expectations. We continuously strive to improve our automobile business, supplying reliable, high performance vehicles. Values Passion Discipline Respect Integrity Mercedes-Benz, a Daimler Group company, is the largest manufacturer of trucks and buses in South America. Its trajectory in Brazil dates back to 1956, when it began operations at the São Bernardo do Campo (SP) factory, producing the first domestic truck. Since then, it has produced more than two million commercial vehicles that travel along the highways of Brazil and the 50 other countries to which Mercedes-Benz exports. The São Bernardo do Campo factory is the Daimler Group’s largest outside of Germany and the only one that produces trucks, bus chassis and components, such as engines, transmissions and axles. The unit is also the headquarters of Mercedes-Benz do Brasil, where its administrative areas are concentrated. The Company also has a truck factory in Juiz de Fora (MG) – one of the most modern in Brazil – as well as a Parts Center and a Training Center in Campinas (SP). Its network of dealers is strategically distributed throughout Brazil, with approximately 200 service locations. expanded consistently, always investing in technology, in order to meet and exceed the expectations of its customers through high quality products and services. At the end of 2013, Mercedes-Benz employed approximately 14,000 employees in Brazil, distributed among its three units. Approximately 79,300 trucks and 18,700 buses were produced in the 2012-2013 biennium. Revenue for the period totaled R$26,185,974,178.00. Of that total, R$22,767,060,097.00 came from domestic sales and the remaining R$3,418,914,079.00 came from exports. Aware of its role in society, Mercedes-Benz directs a portion of its resources to social development, carrying out projects that seek to promote education and sports, protect the environment, foster culture, develop the sciences and ensure health and social welfare. Throughout Brazil’s history, the Company has Aware of its role in society, Mercedes-Benz directs a portion of its resources to social development 2012/2013 Sustainability Report 11 Mercedes-Benz’s Presence in Brazil Geographical Distribution of the Daimler Group São Bernardo do Campo Unit (SP) Opened: 1956 Total area: 1,000,000 m² Includes: factory for trucks, bus chassis, engines, axles and transmissions, Technology Development Center and Company Management. Campinas Unit (SP) Opened: 1979 Total area: 290,000 m² North America Canada United States Mexico South America Argentina Brazil Venezuela Africa South Africa Europe Germany Austria Belgium Denmark Spain France Great Britain Greece Netherlands Hungary Italy Portugal United Kingdom Czech Republic Sweden Switzerland Europe and Asia Russia Turkey Asia China India Japan Malaysia Singapore Thailand Asia and Oceania Indonesia Includes: post-sales services, technical assistance, parts sales, training and development of the dealer network and Call Center. Oceania Australia Juiz de Fora Unit (MG) Opened: 1999 Total area: 2,800,000 m² Includes: truck production. 2012/2013 Sustainability Report 13 Campinas Unit São Bernardo do Campo Unit Opened in 1956, the São Bernardo do Campo Unit in the state of São Paulo is Mercedes-Benz’s largest commercial vehicle manufacturing plant outside of Germany, which is the headquarters of the Daimler Group. It is also the only unit in Latin America that manufactures engines, transmissions and axles, which are used in nearly all of the Company’s products and exported to the Group’s other units. The facilities also include the administrative areas of the Company, the Technology Development Center (CDT), the Senai/Mercedes-Benz Professional Training Center and the Technological Center for Quality. The unit is the benchmark for the Daimler Group’s other plants around the world. In recent years it has received professionals from others plants, specializing in both commercial and passenger vehicles, who came to learn about the processes used by the factory and the philosophy of the production system. Technology Development Center This facility is where the Company’s commercial vehicles are developed. This is the Daimler Group’s largest Technology Development Center for trucks and buses outside of Germany. A pioneering approach in Brazil, this center directs the projects, leading the way for the other areas in the development of new vehicles. Professional Training Center Opened in 1982, this center provides training to develop skilled labor. It takes in young people, ages 16 to 17, nominated by employees, to provide them with technical and Opened in 1979, this unit provides services to the consumers of the Company’s automobiles and vehicles. The Call Center activities, technical assistance, post-sales services, parts sales, and the training and development of the dealer network are all concentrated at the Campinas Unit. It houses the Training Center, which receives and trains dealers from across Latin America, keeping the network up-to-date on the most recent and modern technologies used in Mercedes-Benz’s products. It also has a production line for RENOV remanufactured engines and transmissions, an alternative that has been increasingly used by customers to renew their vehicles. Opened in 1979, the Campinas unit provides services to the consumers of the Company’s automobiles and vehicles professional training. The apprenticeship program lasts for two years and prepares professionals for Mercedes-Benz do Brasil’s Production areas. After this period, the students are prepared to work as vehicle production mechanics in machining and vehicle assembly. The program equips these apprentices, once they have completed the course, with the training needed to work in areas throughout the Company. This partnership with Senai has been in place since February 1957. Technological Center for Quality To ensure the highest quality standards for Mercedes-Benz products, the parts and materials that will be used in new vehicles must undergo a series of evaluations after they have been developed. These rigorous tests and trials are carried out at the Technological Center for Quality. Many of them can be seen on the Internet, using this link: http:// www1.mercedes-benz.com.br/empresa/informacoes_corporativas/ pop620530_ctq_relac_01.htm. 2012/2013 Sustainability Report 15 Juiz de Fora Unit GRI 2.9 Opened in April 1999 and still considered one of the most modern automobile factories in South America, with some of the highest standards and quality ratings among all brand’s units worldwide. Initially dedicated to auto assembly, it pioneered the adoption of water-based paints in the South American auto industry. In 2012, the factory underwent renovations to produce the Accelo and Actros trucks. The new unit received a R$450 million investment and was transformed and prepared in a record time of 18 months. This process was based on in-depth studies and analyses by the Company into the industrial models currently in place in Brazil and around the world, both within the Daimler Group and in other organizations within the industry. Various benchmarks were used to identify the best methods related specifically to manufacturing and logistics, leading to a highly productive and flexible configuration. With this innovative concept, the vehicle assembly process involves transportation using Auto Guided Vehicles (AGVs). The use of AGVs removes the need for a fixed carrier line on the assembly line, as well as the foundations and floor structure needed to support such a line. The AGV process facilitates any line changes to expand to assemble other models, while also providing better ergonomic conditions for employees. The Juiz de Fora plant is one of the few in the world to use this type of auto guided vehicle for truck production. This is a pioneering application of this unique, modern concept in Brazil. An example of the flexibility of this new production configuration is the manufacture of two completely different products along the same assembly line, such as light and heavy-duty trucks. impact on the environment. Everything in the new factory was designed to minimize the unit’s electricity and water consumption throughout the production process. Concepts such as Kanban, Just-in-sequence, One-piece-flow and Lean Manufacturing were combined to allow the unit to have a minimal inventory and prevent waste throughout the manufacturing process. The plant also features an industrial park for suppliers, known as I-Park, which is home to companies that provide components and subassemblies. The idea perfected the delivery of different sets, in the form of kits, directly to the assembly line, in keeping with the just-insequence concept. History of Mercedes-Benz The history of Mercedes-Benz is intertwined with the history of automobiles, the first versions of which were created alongside each other by the Germans Gottlieb Daimler and Karl Benz in 1886. Daimler developed a motorized carriage – the first four-wheel automobile in the world – and Benz marked the beginning of a new era in mobility with the construction of a motorized tricycle. The pioneering spirit of these men would also lead them to build the world’s first versions of buses, gasolinepowered trucks and diesel trucks. The Mercedes brand was created in 1902, when Emil Jellinek, a businessman who was also an enthusiast of motorsports and racing, commissioned Gottlieb Daimler, of whom he was a loyal customer, to build automobiles that were named in honor of his daughter, Mercedes Jellinek. When the companies led by Daimler and Karl Benz merged, in 1926, the three-pointed star, which identified the Mercedes products, joined the laurel wreath, which had characterized the Benz products. This merger gave rise to Mercedes-Benz, which is now a successful and prestigious global automobile brand. The facilities are rounded out with the Luiz Adelar Scheuer Integrated Worker Development Center, opened in September 2002, as a result of a partnership between the Company, the Federation of Industries of Minas Gerais, Sesi and Senai. After all of the changes cited above, the Juiz de Fora factory was recertified in accordance with ISO 9001, TS 16949, ISO 14001 and OSHAS 18001. All of the production procedures were also studied and evaluated to ensure the efficacy of the corporate system of integrated management. The chosen processes are based on sustainability and ensure a minimal Relatório de Sustentabilidade 2012/2013 17 Milestones in the History of Mercedes-Benz do Brasil 1950s Official foundation of Mercedes-Benz do Brasil, whose first President was Alfred Jurzykowski, on October 7, 1953. Casting of the first block for a motor vehicle by Sociedade Técnica de Fundições Gerais S.A. (Sofunge), in 1955, for Mercedes-Benz. Opening of Mercedes-Benz’s first factory for trucks with engines made in Brazil, on September 28, 1956, with a ceremony that included the presence of Juscelino Kubitschek. 1970s and 1980s Expansion of the facilities in São Bernardo do Campo (SP). Opening of the Campinas Unit, in São Paulo, in 1979, focused on the manufacture of buses. Opening of the Professional Training Center, in 1982, through an agreement with Senai for the training of skilled laborers. Milestone of one produced, in 1984. million engines Presentation of the first Mercedes-Benz truck produced in Brazil, the L-312, known as the Torpedo, in 1956. Intensification of production, along with technological and procedural advances in 1958. Monobloc bus manufacturing reaches Brazil with the O-321 H model, which represented a new concept in public transportation. First advertisement for the Mercedes-Benz truck, in 1958, invites the public to form a dealer network. 1960s Mercedes-Benz takes part in the first Motor Show, held in 1960, which receives a significant turnout. Completion of construction of the Central Building, in 1961, together with the factory located in São Bernardo do Campo (SP). Launch of commercial vehicle exports to the Latin American market in 1965. Merger of Sociedade Técnica de Fundições Gerais S.A. (Sofunge) into the Group in 1969 – this structure was maintained until 1996, when it was sold to the Tupi casting company. 1990s Opening of the Technology Development Center (CDT), the largest in Latin America, focused on commercial vehicles, in 1991. Highlights: one million commercial vehicles produced, with 740,000 trucks and 260,000 buses (1992). First vehicle manufacturer in Brazil to obtain ISO 9001 (quality management) certification, internationally and domestically, in 1995. Adherence to the Verband der Automobilindustrie (VDA), a quality standard developed by the German automotive industry. Start of construction on the passenger vehicle factory at the unit in Juiz de Fora (MG), in 1997. Merger of the Daimler-Benz and Chrysler groups, in 1998, and the emergence of DaimlerChrysler AG, owner of the Mercedes-Benz, Chrysler, Dodge and Jeep brands. Opening, in 1999, of the factory in Juiz de Fora (MG), one of the most modern in the automotive industry in South America, for the production of A Class and C Class cars. ISO 9001 certification (quality management) for the Juiz de Fora unit, in 1999. 2012/2013 Sustainability Report 19 Opening of the Worker Development Center in Juiz de Fora (MG) in 2002, with laboratories, classroom, auditoriums and workshops for the professional training services of Sesi/Senai. President Luiz Inácio Lula da Silva, during a visit to the unit in São Bernardo do Campo (SP), in 2003, met with the President of the Company, the executive officers and labor representatives, giving a speech for approximately 6,000 factory employees. The following year, the unit is chosen by Lula for the national launch of the Mobile Urgent Care Service (SAMU) project, due to the provision of 680 Sprinter units adapted to serve as ambulances. Start of transmission exports to Germany and record engine exports to the United States, in 2003. Opening of the Specialized Bus Center, with exclusive services to meet the needs of bus customers, in 2005. Mercedes-Benz buses running on biodiesel added to diesel is the highlight of the Brazil/Germany Economic Summit held in 2005. In 2005, the milestone of 1.5 million commercial vehicles produced since 1956 is reached. The following year, there is a record output of BR460 engines destined for the Detroit Diesel Corporation, with 32,032 units. With more than 9,700 trucks exported in 2007, the Company outperformed its previous record, set in 1980. Mercedes-Benz announces, in 2008, investments of R$150 million for the purchase of new equipment and improvements to the production processes. The Company signs a contract with the National Development Bank (BNDES) for a R$1.2 billion loan to expand its production capacity at the factory located in São Bernardo do Campo. 2000s Consolidation of the merger of Mercedes-Benz do Brasil S.A. into the DaimlerChrysler Group, resulting in DaimlerChrysler do Brasil Ltda., in 2000. Opening of the Campinas Training Center, in São Paulo, the group’s first training center worldwide for the Mercedes-Benz, Chrysler, Jeep and Dodge brands, serving all of Latin America. In 2000, the completion of the first stage of the transfer of the bus platform and chassis assembly lines from the unit in Campinas (SP) to the unit in São Bernardo do Campo (SP). Expansion of the activities at the unit in Campinas (SP), which brings together Production, Technical Assistance, Post-Sales, the Sale of Parts and Training for the Dealer Network. FOTO ISO 14001 certification (environmental management system) for the units in São Bernardo do Campo (SP) and Juiz de Fora (MG), in 2001. Opening of the mid-sized transmission line at São Bernardo do Campo (SP), in 2002. Launch, in 2002, of the Mercedes-Benz Truck Drivers Club, an initiative focused on building relationships with truck drivers throughout Brazil. 2012/2013 Sustainability Report 21 2010s Pioneering test of diesel made from sugarcane, in 2010. That same year, the production capacity in São Bernardo do Campo (SP) is expanded to 75,000 units and 800 new employees are hired. Sale of more than 100,000 vehicles and a new truck and bus production record in 2010, with 73,674 units. Commemoration of the 125th anniversary of the invention of the first motorized automobile with the presentation of the new CLS 63 AMG. With the start of production scheduled for 2015, the new automobile factory, located in Iracemápolis (SP), will produce the next generation of the C Class (180 Flex, 200, 250 and 300) and the GLA (200 Flex and 250) Production of remanufactured parts reaches the mark of 500,000 units in 2011. Increase in production and hiring of 1,250 employees in June 2011. Realization of the first Environmental Week at the factory in São Bernardo do Campo (SP), open to customers, dealers and other partners. In commemoration of the 125 th anniversary of the invention of the automobile, the Mercedes-Benz Run and Fun Walk was created in 2011 to encourage wellness and promote integration among its employees. Transformation of the factory at the Juiz de Fora unit for the production of trucks. At the end of 2011, a new commercial vehicle production record was achieved at the factory in São Bernardo do Campo (SP): 78,343 units manufactured, with 50,265 trucks and 28,078 bus chassis. Proconve P-7, which is the Brazilian version of Europe’s Euro 5, legislation aimed at reducing greenhouse gas emissions, enters into effect in 2012. Mercedes-Benz trucks begin using the exclusive BlueTec 5 technology in response to this legislation. Between 2012 and 2013, the MB Trucks #1 - MBBras Turnaround program begins. It is one of the largest cost reduction and efficiency programs ever introduced by Mercedes-Benz do Brasil, aimed at turning the Company into the leader of the truck market. The Company’s administrative body receives a new President and new Vice Presidents. Announcement of a new automobile factory, located in Iracemápolis (SP). With the start of production scheduled for 2016, the unit will produce the next generation of the C Class (180 Flex, 200, 250 and 300) and the GLA (200 Flex and 250). Mercedes-Benz do Brasil signs a partnership with the Sociedade Rosas de Ouro Samba School for the 2013 Carnival, with the theme “The Drivers of Joy: A Fantastic Journey into the Realms of Carnival”. 2012/2013 Sustainability Report 23 Awards and Recognitions GRI 2.10 “Automotive Leaders of Brazil” Award 2012 Mercedes-Benz received dual recognition with this award, sponsored by the Pará newspaper Automóveis & Caminhões. The result, announced in the state capital, Belém, highlighted the Company as the largest manufacturer of buses and the OF 1722 as the bus chassis of the year. The brand also won in the premium car category, with its E Class. The award took into account the automobile sales in 2011, a year in which Mercedes-Benz do Brasil achieved an impressive volume of more than 14,900 buses licensed in Brazil. With more than 10,000 units licensed in 2011, the OF 1722 chassis is the top seller. In the region of Belém, the brand’s market share in the bus segment was approximately 46%. Recognized Merit 2012 An initiative of Jornauto magazine, this award recognized Mercedes-Benz do Brasil as the overall winner in the commercial vehicles segment, with trophies in five categories: best manufacturer of trucks, buses, vans and diesel engines and best dealer network. The “Recognized Merit” is awarded every two years to the brands that most stand out for their products, parts and services for the cargo transport and passenger segments. To do this, the publication conducts a nationwide survey involving approximately 8,000 companies, which indicate the brands that they use and consider to be the best in 32 categories. Top of Mind in Rio Grande do Sul 2012 Tribute from the Dorina Nowill Foundation Mercedes-Benz was named, for the 17th consecutive time, as the most remembered truck brand in Rio Grande do Sul, in the Top of Mind awards given by the magazine Amanhã. Rio Grande do Sul is a state with a strong, established tradition in transport and logistics. With this award, Mercedes-Benz maintained its unbeaten leadership in the truck category since its inclusion in the awards, 17 years ago. Carried out in partnership with the company Segment, Top of Mind consists of a survey carried out in seven micro regions of Rio Grande do Sul to measure the spontaneous recall of brands, without prompting any name or product. With this, consumers tend to cite the brands that they use, desire or prefer. Mercedes-Benz also received the Top Executive Award in the luxury cars category. In its fifth edition, this survey mapped the brands most commonly recalled by the leaders of the largest businesses in Rio Grande do Sul, classified based on the “500 Largest of the South” ranking produced by Amanhã magazine together with the consulting firm PricewaterhouseCoopers. Mercedes-Benz obtained more than 38% of the votes of business people and executives. The tribute took place during the 13th edition of the “Vision Partners” event, held on June 13, 2012. During the tribute, the Foundation recognized and thanked all of the companies that supported, in 2011, the projects focused on the production and distribution of books in braille, audiobooks and accessible e-books, as well as rehabilitation, special education and employability services and the low vision clinic. In addition to sponsoring the daily actions of the institution, in 2011 Mercedes-Benz made possible the production of 130 audiobooks featuring best sellers and academic publications. Mercedes-Benz received dual recognition through the 2012 “Automotive Leaders of Brazil” Award 2012/2013 Sustainability Report 25 Ethics in Business Award 2012 The President of Mercedes-Benz and CEO for Latin America in 2012, Jürgen Ziegler, was elected the person of the year for the 2012 Ethics in Business Award. The tribute took place in São Paulo, during an event carried out by the Brazilian Institute of Ethics in Business. For each edition of the award, the entity seeks to recognize business people or executives who have stood out for their legacy in Brazilian business. The winner is announced following a nomination process. Época Negócios 100 – The Most Prestigious Companies of Brazil 2012 In its fifth edition, the award recognized Mercedes-Benz do Brasil as the best company in the “Heavy-Duty Vehicle” category and 26th in the “Automobile” category. Organized by the Globo publishing house’s Época Negócios magazine, the ranking highlights 100 organizations that present a strong corporate image from the point of view of Brazilian consumers. The survey indicates the best commercial strategies adopted in a highly competitive environment. The ranking is prepared by the Troiano Branding Group and is the result of a comprehensive survey held nationwide involving more than 12,000 respondents from every social class and different age groups. The Mercedes-Benz Atego 1725 4x4 truck recorded another significant achievement at the 20th Rally dos Sertões Mercedes-Benz Wins Award in Four Categories Mercedes-Benz was the highlight in the National Preference Award, given by the Tudo em Transporte publishing house to recognize the best cargo transport companies. This award is the result of market research bringing together, in an unprecedented way, the preferences of fleet owners and truck drivers throughout Brazil. The result, announced on February 29, 2012, in São Paulo, revealed the Mercedes-Benz brand as Top of Mind in three categories: light semi-trailer, light-duty and medium-duty trucks. The fourth award as in the light-duty truck loyalty category. Sprinter Wins the Retail Merit Award Mercedes-Benz’s Sprinter won the 2012 Retail Merit Award in the light-duty commercial vehicle segment, utility category. This traditional initiative by the National Confederation of Shopkeepers (CNDL) seeks to recognize partners, suppliers and service providers for their actions and initiatives in support of Brazilian retail, focused on the quality of the products, services, customer services, promotions, advertising and merchandising. The winners of this award, which was introduced in 1980, are chosen through direct voting by shopkeepers throughout Brazil. It is a spontaneous survey, whose printed or electronic form does not indicate brands, allowing the CNDL members to identify the companies that provide the most effective services to their business. Sprinter was recognized as providing advantages such as transport flexibility, high load capacity and reduced operating costs. Atego Wins the Rally dos Sertões The Mercedes-Benz Atego 1725 4x4 truck recorded another significant achievement at the 20th Rally dos Sertões, one of the longest and most difficult off-road races in the world. With the victory of the Salvini Racing team in the heavy-duty truck category, the Atego achieved its sixth victory in the competition, the ninth for a Mercedes-Benz, which consolidates the brand’s position as the top winner in the category. The strong performance also confirms the excellent performance of the Atego, as well as its strength, robustness and resistance in the face of severe obstacles and challenges, such as trails filled with mud, dust, stones, rivers, high temperatures and more. The 2012 Rally dos Sertões began on August 19, in São Luís, Maranhão and ended on August 28, in Fortaleza, after a journey of 4,480 kilometers through 11 cities in Maranhão, Tocantins, Piauí, Pernambuco and Ceará. 2012/2013 Sustainability Report 27 Consumidor Moderno Award for Excellence in Customer Service 2012 and 2013 In 2012, Mercedes-Benz do Brasil won two AutoData Award –Best in the Automotive Industry trophies The Mercedes-Benz Customer Service Center was recognized for the quality of its customer service management in Brazil since it first took part in these awards, 12 years ago. In 2013, in addition to winning the “Luxury Automobiles” category for the 12th consecutive time, the Company was also named “Company of the Year.” Considered the main initiative to recognize customer service quality in Brazil, this award highlights companies that maintain high levels of satisfaction, retention and loyalty. Organized by the Padrão Group (which publishes Consumidor Moderno), with quality auditing by GfK, the survey was created in order to identify and spread the best practices in customer service in Brazil. AutoData Award – Best in the Automotive Industry 2012 and 2013 In 2012, the Company won two AutoData Award – Best in the Automotive Industry trophies, one of the Brazilian automotive industry’s most prestigious awards. In the “Commercial Vehicle Manufacturer” category, Mercedes-Benz won for its fast and efficient conversion of factory in Juiz de Fora (MG) in a record time of 18 months, into one of the most modern, advanced and sustainable factories in the world with the receipt of the assembly lines for the Actros and Accelo trucks. The Company also won in the “Bus Vehicle” category, with special mention for the OF 1519R Euro 5 chassis, which was developed to provide school transportation in rural areas, as part of the “Caminho da Escola” (Way to School) Federal Program. The model was entirely designed at the Company’s Technology Development Center, in São Bernardo do Campo (SP). In 2013, Mercedes-Benz once again won in the “Commercial Vehicle Manufacturer” category and in the “Exporter” category. The brand’s products took home two prizes: the Actros 2655 6x4, equipped with a V8 engine, won in the “Truck Vehicle” category; and the O 500 articulated bus in the “Bus Vehicle” category. Mercedes-Benz is a Highlight at the 2012 and 2013 Brazil Brand Awards Mercedes-Benz won four trophies at the 2012 Brazil Brand Awards, an important business sector recognition initiative organized by Trio International Distinction, a 13-year partnership between Tarcom Promoções and technical magazines from various sectors. Mercedes-Benz was announced as the winning brand in the medium-duty and semi-trailer truck categories, according to votes from the readers of O Carreteiro magazine. The recognition was made even more significant with the Top Max Award, given to companies whose brands have been winners in eight editions, and the Top Absolute Award, reserved exclusively for those that have consecutively won the award since its introduction in 1999. And in the 2013 Brazil Brands Award, the Company once again won four trophies at the event held on September 17, in São Paulo. Mercedes-Benz Wins Award for Leadership in the Bus Segment Mercedes-Benz, a leader in the bus segment, won the 2012 Lótus Award as the brand of the year in the light-duty commercial vehicles sector. The award took into account the number of Renavam licenses relative to 2011. With more than 15,000 bus chassis licenses last year, Mercedes-Benz achieved a 43% share, maintaining its standing as the leader in the segment. This is a result of the Company’s increase in production capacity and the wide acceptance of the brand’s products. Mercedes-Benz also won the Lótus in the urban and highway categories. Ethics in Business Award 2012 The President of Mercedes-Benz do Brasil and CEO for Latin America at the time, Jürgen Ziegler, was elected person of the year by the 2012 Ethics in Business Award, promoted by the Brazilin Institute for Ethics in Business. With degrees in economics and business administration in Germany, and more than 32 years of experience with the Company, Ziegler was recognized for his legacy in Brazilian business. In the process of choosing the names that were in the running for the prize, up to five names are provided by the main big business manager of large companies in Brazil, listed in the “T” magazine, forming the ranking of the ten most voted. And in 2012, after the calculation of the list, Ziegler was chosen. 2012/2013 Sustainability Report 29 Products and Services Mercedes-Benz do Brasil supplies the Brazilian market with the largest and most complete line of products for cargo and passenger transport, as well as passenger cars. 2012/2013 Sustainability Report 31 Global brands of the Daimler Group GRI 2.2 The Daimler Group has a wide range of business segments throughout the world. In the automobile segment, it owns the Mercedes-Benz and Smart brands. In the commercial vehicle segment, it owns the Mercedes-Benz, Freightliner, Fuso, Western Star, Thomas Built Buses and BharatBenz brands. The Group also manufactures engines and components. The competitiveness of the brands can be seen throughout all of the Group’s business divisions. Mercedes-Benz Cars Daimler Trucks Mercedes-Benz Vans Daimler Buses Daimler Financial Services 2012/2013 Sustainability Report 33 Products Manufactured and Sold in Brazil (including launches in the 2012-2013 biennium) GRI 2.2 Mercedes-Benz do Brasil supplies the Brazilian market with the largest and most complete line of products for cargo and passenger transport, as well as passenger cars, which are imported. Trucks The first brand to introduce a domestically manufactured truck, Mercedes-Benz has developed the most complete and modern line of trucks in Brazil, which includes more than 30 models – lightduty, medium-duty, semi-trailer and heavy-duty – with multiple engine options. The Company invests heavily in technology, thereby contributing to advancements in Brazil’s transportation sector. Its trucks are equipped with a new generation of Mercedes-Benz BlueTec5 engines, which provide lower operating and maintenance costs, as well as reduced emissions. Mercedes-Benz’s trucks have won over markets in more than 30 countries. In Brazil, there is a network of 157 commercial vehicle dealers (trucks, buses and Sprinters) spread all over the country, with the best resale value on the market. 2012/2013 Sustainability Report 35 Mercedes-Benz Technologies Top Brake Engine-Brake: Exclusive Mercedes-Benz technology that provides greater safety, lower fuel consumption and increased durability of the brake and tire system components. Mercedes-Benz BlueTec5: Technology developed to meet the Proconve P-7 standard (see more on page 59), the BlueTec5 engines provide reduced operating costs and lower emissions, while also being 6% more economical. Another highlight are the less frequent oil changes. Mercedes PowerShift: Totally automated transmission, without a clutch pedal and synchronizer rings, that provides faster and more accurate shifting, further improving performance and fuel consumption. The lack of synchronizer rings enables the use of larger, stronger gears, which provide a stronger, more durable transmission. Next Generation Fleet Management System Mercedes-Benz selected Brazil for the global launch of its next generation fleet management system, FleetBoard, which is already being used in Brazil in the Axor and Actros heavy-duty trucks. FleetBoard is an advanced telemetry solution that uses the internet and mobile telephony to provide modern management of fleets and motorists, as well a vehicle and cargo security. Its major benefits include the ability to reduce operating costs by up to 15%, including consumption and maintenance – based on real usage situations in Brazil – and greater fleet availability, which results in greater profitability for customers. It also provides a reduction in CO2 emissions that, in Europe, was calculated at 10%. With this next generation, the system integrates into the electronic management of the vehicle, with security devices. Since it is not visible, the device is extremely secure, not allowing for manipulation or removal. The new version will also offer sophisticated tracking, security and risk management solutions for cargo and logistics. The goal is support customers in their efforts to combat the theft and robbery of cargo vehicles. These services combine cutting edge technology, the extensive experience of the intelligence center and the in-house team of a Brazilian partner that is a leader in the segment. The product reinforces Mercedes-Benz’s concept of providing complete solutions to customers, so that they can purchase the truck, the fleet management system and the tracking device in a single location, and with the brand’s credibility and quality. There are now more than 2,000 Axor and Actros trucks operating with FleetBoard in Brazil. Worldwide, there are already more than 100,000 vehicles. Developed through a partnership between Germany’s FleetBoard and the Engineering team at Mercedes-Benz do Brasil, the new version of the technology will be available in the first quarter of 2014, for the various truck and bus lines. For Actros, the technology will be launched in April 2015. Accelo Line The Accelo models – 815 and 1016 – are ideal for the distribution of goods, as well as the delivery and collection of cargo and products along urban and intercity routes. They are also recommended for short highway distances and rural areas. They offer unparalleled comfort in their class, with an ergonomic and comfortable cab and seating for the motorist and front passenger. The instrument panel, with an onboard computer and navigation keypad, provides better information visualization and simplifies operations. It also has functions that help the driver operate the vehicle in a more economical manner, such as the vehicle’s instantaneous fuel consumption indicator. The engines that equip the Accelo models are highly durable, which is a recognized characteristic of Mercedes-Benz’s light-duty trucks. These vehicles come standard equipped with five-speed transmissions. The Accelo 1016 is able to accommodate the new Mercedes-Benz G-56 transmission with six gears, which presents better performance, increased robustness and, along with its real axle ratio of 4.30, it allows for a PBT of 13 tons after the installation of the third axle. With its smooth and precise shifting, this transmission provides greater comfort while driving, which is essential in intense city traffic, along with excellent performance for intercity and highway applications. First Light-Duty Truck with an ABS System In 2013, the Accelo 1016 became the first light-duty truck to introduce a standard ABS system. This feature prevents the wheels from locking during the braking process, providing greater stability and maneuverability to the vehicle in adverse situations, mainly in cases where the roadway is slippery. ABS thereby helps prevent accidents. Another important benefit supplied by the system is the reduced maintenance costs due to the individual braking control on each wheel, which prevents uneven wear on the tires, minimizing the need for early replacements. 2012/2013 Sustainability Report 37 Actros Line The Actros trucks are especially indicated for transport customers and companies that value and recognize the importance of comfort and safety as allies in increasing productivity in transport. Its various hitches allow for the transport of cargo over short or long distances and allow the use of a variety of semi-trailers, such as bulk carriers, open dry cargo carriers, closed cargo carriers, siders, liquid and gas tanks, shipping containers and others. They are also used to haul road train combinations, such as B-Trains. The 4844 K 8x4 dump truck model is recommended for complex off-road operations, such as in mining, heavyduty construction and major infrastructure projects. The Actros line is offered with four cab versions: Short (for off-road dump trucks), Low Ceiling Sleeper, High Ceiling Sleeper and the exclusive MegaSpace cab. The MegaSpace cab, available for the highway transport models, features air suspension and high levels of ergonomics and functionality. With an entirely flat floor and an internal high of 1.92 meters, the spacious cab provides a noteworthy freedom of movement and total comfort for motorists in all circumstances, as a workplace, during breaks and for overnight sleeping. The MegaSpace cab also comes standard with nocturnal air conditioning, a feature offered exclusively by Mercedes-Benz, which provides even more comfort when sleeping at night with the engine off, without consuming fuel. Heavy-Duty Trucks In 2013, Mercedes-Benz launched real axles without hub reduction for the highway models and released the giant heavy-duty Actros 4160 AK SLT. With 8x8 traction, this truck has a Maximum Traction Capacity (CMT) of 500 tons and was specially designed for the heavy-duty transport of indivisible cargo. Custom Tailored Trucks (CTT), located in the city of Molsheim, in the region of Alsácia, and managed by the Wörth truck factory, is responsible for the development and production of this model. The Actros 4160 AK SLT has a Mercedes-Benz V8 engine with 598 hp of power and 2,800 Nm of torque. The truck is also equipped with a hydraulic coupling, which provides for maneuvers and drop-offs free of wear and with greater operational flexibility. In addition, it has a retarder integrated into the turbo coupling and an additional cooling system. The Atego family has the widest range of cabs in the segment. There are four options available: Short, Extended, Low Ceiling Sleeper and High Ceiling Sleeper Atego’s New Features Atego Line The Atego line is made up of the 1419 medium-duty truck, the 1719, 1726,1726 (4x4), 1729, 2426 semi-trailer trucks and, more recently, the Atego 2430. Based on the model, there are up to four wheelbase versions available, which translates into a significant range of configuration options to meet all of the needs of transporters, including distributors, wholesalers, grain transporters and logistics operators, as well as those who transport beverages, appliances, furniture, fresh produce, frozen foods, chemicals, construction materials, water and municipal services, among others. The Atego family has the widest range of cabs in the segment. There are four options available – Short, Extended, Low Ceiling Sleeper and High Ceiling Sleeper – that will meet the needs of each customer and application type. This variety is exclusive in the market and is only available on Mercedes-Benz trucks. Regardless of the type of cab, Atego trucks allow for the use of the widest range of trailers in the segment, including all types, such as containers, dry freight, isothermal storage, refrigerated storage, siders, beverages, gas cylinders, fuel tanks, LPG or chemicals, open timber or aluminum frame, and more. In 2013, the Atego trucks received a new cabin suspension, which was completely redesigned to provide an even greater level of satisfaction and comfort to drivers and their passengers. Another highlight is the new internal upholstery on the ceiling, sides and rear wall of the cab, which adds a touch of elegance and improves sound insulation. The pneumatic driver’s seat has been redesigned and includes new settings, such as adjustments to the horizontal and vertical dampening system. A new bed was also developed, with modern fabric and thicker foam. The mattress is removable and the cover can be washed. The Low Ceiling Sleeper and High Ceiling Sleeper cabs also feature an exclusive king size version of the bed, with an additional meter and a half of width. In addition to the new features focused on comfort, the Atego line also received the next generation HL-4 rear axles. These lighter axles facilitate any maintenance work that might be needed. 2012/2013 Sustainability Report 39 New Atego 2430 Econfort 6x2 New Atego 1729 Launched in 2013, this new model is the first Mercedes-Benz truck in the semi-trailer truck segment to receive the fully automated Mercedes PowerShift transmission, which offers trademark Mercedes-Benz comfort. In addition to the usual advantages of the system, which is used for the brand’s other lines, the new 12-gear G-211 version, with direct drive configuration, prevents strain on the drive train and shifts rapidly and smoothly, significantly increasing comfort levels. Another new feature of the Mercedes PowerShift G-211 includes the Maneuver, Power and EcoRoll functions, with the latter putting the vehicle’s transmission into neutral in a safe and controlled manner, which is carried out without the intervention of the driver, helping reduce fuel consumption. The Atego 2430 Econfort also continues to offer the manual 9-gear Mercedes G-131 transmission, which now includes a new superimposed H-type gear map, which improves the ergonomics and facilitates shifting. This semi-trailer truck was specifically developed for garbage collection. It stands out for the extreme robustness of its drive train, which is capable of handling its work with the reliability characteristic of Mercedes-Benz products. This new product joins the 4x2 Atego 1719 and 1726 models, expanding Mercedes-Benz’s garbage collection options. The truck’s Mercedes-Benz OM 926 LA engine features a new torque curve concept, with a maximum torque of 1,250 NM, which optimizes the shifting dynamics between gears to minimize exchanges, maintaining the operating speed of the vehicle. This new concept allows the engines to intuitively work in the gear that provides lower fuel consumption and greater comfort. The engine also received improvements to the activation of the cooling system and the air compressor. The Atego 1729 comes standard equipped with everything needed for garbage collection, including a power socket at the back of the engine, vertical exhaust (ideal for operations where there are people working around the vehicle) and a reinforced rear suspension, with short springs. The technical capacity of the new Atego is 24,000 kilograms of Total Gross Weight (PBT), which provides evidence of its robustness and offers an excellent technical reserve for improving the performance and durability of the assembly. With all of these new innovations applied to the Atego 2430 Econfort, it is possible to reduce fuel consumption by up to 6%, in addition to the reduction already supplied by Mercedes-Benz’s BlueTec5 technology, which also can reach up to 6%. Atron Line The Atron trucks are recommended for short, medium and long highway distances, for urban cargo transport and distribution, as well as for off-road operations in the construction, mining, logging and sugarcane industries. They offer a wide range of options for cargo transport companies and inhouse cargo transport, as well as for independent truck drivers who are seeking a robust truck with optimal operating costs. The Atron models include the Atron 1319 medium-duty truck, the Atron 2324 6x2 semi-trailer truck and the Atron 2729 6x4 and Atron 1635 4x2 heavy-duty trucks, the latter in a tractor version. The line was expanded in 2013 with the launch of the Atron 1719 4x2. In addition to advanced cabs for the Atron 1719 and 2729 models, Mercedes-Benz maintained the tradition of offering the forward front axle for the 1319, 2324 and 1635 models. The brand’s forward front axle trucks have an excellent reputation in the Brazilian market, and are preferred and trusted by customers. The interior of the Atron cabs is distinguished by its simplicity, new upholstery and seating. The dashboard, the steering wheel ideal for handling and the comfortable and ergonomic seating provide convenience for the daily work routine. There is also the key with an immobilizer, which provides extra protection against theft and provides security for the driver, the vehicle and the cargo. The Atron dashboard, which features an onboard computer and navigation keypad, has a clean design and night view option facilitated by the use of amber lighting. Another significant advantage is that the dashboard also has functions that help the driver operate the vehicle in a more economical manner, such as the vehicle’s instantaneous fuel consumption indicator. The Atron 1635 tractor also features the Econômetro, a variable green bar that indicates the proper rotation for reduced consumption with each use. 2012/2013 Sustainability Report 41 Axor Line All of the versions of the Atron 1719 can accommodate a third axis, which is mounted using specialized implementers available on the market, increasing the vehicle’s cargo capacity New Atron 1719 4x2 This semi-trailer truck was launched in 2013 with three versions: one for beverage distribution, one is for construction transport needs, such as dump trucks, and the third, which is a platform truck, can be used for a range of purposes and can accommodate many types of implements for cargo distribution in urban areas and highway transport, with the most common forms being the aluminum closed cargo carriers, open dry cargo carriers and siders. The latter has a wheelbase that allows for the installation of trailers up to 7.20 meters in length. This wheel base is also available in the beverage transport version, and can accommodate a flat trailer or a lowered trailer for ten pallets. In the case of the lowered trailer for beverage transport, Mercedes-Benz offers the exclusive “beverage kit” specially developed to facilitate, accommodate and reduce implementation costs. This kit consists of two additional cardan joints, a wiring harness, fuel line and elongated pneumatic tubing. This version also features short springs and a reinforced rear suspension, ideal for beverage transport with a lowered trailer. Meanwhile, the Atron 1719 dump truck comes standard with a power outlet in the transmission and it is recommended for containers holding up to seven cubic meters, for the transport of sand, earth, stone and gravel, among others. All of the versions of the Atron 1719 can accommodate a third axis, which is mounted using specialized implementers available on the market, increasing the vehicle’s cargo capacity. With this, the truck’s technical Total Gross Weight, which is 16,500 kilograms in the 4x2 version, is increased to 23,000 kilograms in the 6x2. The Axor trucks are prepared to transport a wide range of implements, with configurations that range from platform trucks to B-trains and including all types of semi-trailers. The line is made up of highway model trucks up to 74 tons and off-road trucks with a maximum towing capacity of up to 123 tons, offering the perfect mix of strength and comfort. The Axor trucks also ensure optimum profitability for a range of cargo transport options. There are also versions that have been specifically developed for construction, ideal for accommodating dump truck mechanisms and mixers, for example. Other characteristics that helped the Axor line establish itself in the market are its durability and the excellent performance of its drivetrain, which has Mercedes-Benz components, ensuring the reliability people expect from the brand. Axor’s New Features In 2013, Mercedes-Benz launched the Axor 1933 and 2533 lines, with the Mercedes PowerShift automated transmission. The Axor 3131 comes with the semi-automated Mercedes ComfortShift transmission. The Company also introduced pneumatic suspension to the chassis and new rear axles without hub reduction. Other new features included the wheelbase distance of 3,100 millimeters for the 6x2 highway dump trucks and the inclusion of the Maneuver, EcoRoll and Power functions in the automated Mercedes PowerShift transmission. Among the innovations focused on comfort are the air suspension in the cabs with beds, the fully renovated interiors, the new king size bed and the new pneumatic seating for the driver. New Axor 3131 Off-Road 6x4 This heavy truck is the successor to the 2831, known for its strength, sturdiness and resistance for heavy work. Its technical capacity has been increased to 31,500 kilograms of Total Gross Weight (PBT). The model also features the semi-automated Mercedes ComfortShift G211 with 16 gears, which provides more comfort for the driver and protects the drivetrain from abuse. Available in the Dump Truck, Mixer and Platform versions, this new truck was specially developed for the severe offroad operations of the sugarcane, logging, mining, construction and infrastructure industries, which are take place in locations with unpaved dirt or gravel roads, irregular topography and major includes and declines. The dump truck version is recommended for the transport of rocks, sand and gravel. The mixer is ideal for the transport of concrete, while the platform version is used for concrete pumps, the planting and harvesting of sugarcane, reforestation woods and support services in the field, among other applications. The Axor 3131 is ideal for operations in hard-to-reach areas, as it provides better maneuverability and visibility. Air conditioning comes standard in the truck, which further increases the comfort on board, allowing the motorist to work in a closed cab, free of dust and with less interference from outside noises. 2012/2013 Sustainability Report 43 Buses Pioneer in the manufacture of the first domestic bus – the L 312 chassis in 1956 – Mercedes-Benz do Brasil has always been the leader in the segment, both in terms of domestic and foreign market sales, as well as innovation and technological development. The Company’s factory in São Bernardo do Campo (SP) is home to the bus chassis production line. The unit is Daimler’s Global Expertise Center for the development and production of these chassis. Mercedes-Benz do Brasil is a reference in the market for the development, testing and regular use of alternative fuels to diesel. Its successful experiences included biodiesel and sugarcane diesel, biofuels that are regularly used in major cities, such as São Paulo and Rio de Janeiro. The Technology Development Center has also been carrying out tests with the diesel+GNV biofuel engine in urban buses. In partnership with Eletra, a company specializing in electric vehicles, Mercedes-Benz has also taken part in successful initiatives in the sector, such as the HíbridoBR (diesel + batteries), the E-Bus (batteries) and the trolleybus (electricity network). The experiments with non-diesel alternative engines offer many environmental benefits by reducing emissions and significantly improving air quality. The Company has also made a notable contribution to urban mobility in Brazil. In addition to the most complete line of urban and highway buses, Mercedes-Benz stands out through its provision of solutions for every passenger transport need. This is the case with the portfolio for public transportation systems, such as Bus Rapid Transit (BRT) and the exclusive corridors, as well as the specialized BRT advisory services, with professionals focused on serving operators, managers and consultants. Automobiles Urban Buses Highway Buses Mercedes-Benz’s urban bus portfolio includes minibuses, conventional buses and the padron type for feeder and distributor lines, as well as luxury buses for main lines and exclusive corridors. Mercedes-Benz’s highway buses are recognized by the market for their high standard of technology, performance, comfort and safety. The portfolio includes vehicles for short, medium and long distances, as well as chartering and tourism. In June 2012, the O 500 bus came on the market in the UDA (low floor) and MDA (normal floor) versions. The main highlight of the vehicle is are its four axles, which allows for the installation of bodies up to 23-meters in length, in a single frame, for transporting more than 200 people, depending on the internal configuration of the bus. The bus line also had a model specifically designed for rural school transport, the OF 1519 R chassis. The 0 500 highway bus line stands out for its fully pneumatic suspension system and for hightech items such as its BlueTec 5 engines, fully automated Mercedes PowerShift transmission, chassis kneeling system and electronic safety programs, such as ESP, EBS, ABS and ASR. Mercedes-Benz’s automobiles have always been considered true objects of desire around the world due to aspects such as their design, comfort, safety and reliability. As the inventor of the automobile, the brand has taken on the responsibility of, in addition to delighting customers with beautiful models, never stop innovating and saving lives. The concept of sustainability is also present in the development of the models, which are increasingly efficient and emissions free. With the most variety in the high-end luxury segment, Mercedes-Benz has 21 models and more than 40 versions in Brazil alone. Most of the automobile production takes place in Germany, but the Company also has factories in the United States, China, France, South Africa, India, Vietnam and Indonesia, which, taken together, total 17 units. Beginning in 2016, manufacturing will also take place in Brazil, where a factory will be installed (learn more on page 65). Product Launch In 2013, the new A Class was launched in the Brazilian market, featuring a combination of beauty and efficiency with less impact on the environment. Featuring a design that has been recognized with major awards throughout the world, this automobile is available in two versions: Style and Urban. The airflow is optimized, providing the lowest air resistance coefficient in the category. As a result, the fuel consumption is lower. The model also includes BlueEFFICIENCY, which includes environmentally sound technologies for the road. The state of the art energy management system and functions such as the ECO start/ stop ensure not just greater economy, but also lower emissions. The new A Class is also safer, featuring ATTENTION ASSIST system sensors, which alert the driver whenever they detect signs of drowsiness or inattention. 2012/2013 Sustainability Report 45 The Sprinter line offers various options for vans and chassis that provide economy, safety and optimum performance Product Launches In 2013, the limousine version of the Spring, the Jetvan Aviaton Style, was launched. It is a windowed Sprinter 415 CDI van customized by an implementing company to be a sophisticated limousine, aimed at meeting the passenger transportation needs of the luxury segment. Mercedes-Benz this year also launched the first mixed-use van, with seating for up to six occupants and 7.8 meters of cargo space, in the factory-configured version. This solution meets the demands of customers who need to transport cargo and passengers at the same time, without sacrificing comfort and the best use of the internal space. The main markets for this product are vehicles for teams involved in promotions, event organization, photos and filming, advertising, among others. Components Parts and components for commercial vehicles, such as engines, transmissions and axles, are produced at the factory in São Bernardo do Campo. These components are used in the trucks and buses with Mercedes-Benz chassis. They are also exported to supply the Daimler Group’s other commercial vehicle factories, in countries such as Argentina, Mexico, the United States, Germany and Spain. Sprinters The Sprinter line offers various options for vans and chassis that provide economy, safety and optimum performance. The brand’s vans are the ideal vehicle for any type of business or application, such as the transport of cargo and persons, as well as for the provision of services in general. The portfolio includes 50 models, including exclusive products, such as the mixed van and the 20+1 van (20 passengers and the driver) – the largest on the market – and differentiated products, such as the windowed van and the Street line, which provides free movement in the restricted areas found in major cities. One major differential with the Sprinter line is the level of equipment that comes standard, which includes Adaptive 9iE ESP, driver’s side airbag, fog lights, a steering wheel with height and depth adjustment, CD/MP3 radio, central door locks, and more. Items such as these add value to the vehicle, meeting the main requirements of the segment with excellent value for the money. 2012/2013 Sustainability Report 47 Services Post-Sales The Largest Dealer Network and Best Customer Relationship Center The Mercedes-Benz Dealer Network is the largest and most highly specialized in commercial vehicles in Brazil. Present in every state in Brazil, the Network relies on strategically located service points, providing extensive territorial coverage. The Customer Service Center is a reference in the market. In addition to its highly specialized team, it offers various access channels, such as by phone, email, live help via chat, mail, fax and social networks, standing out for its quality and rapid response to customer inquiries. Mercedes Assistance During the warranty period, customers are able to receive support from Mercedes Assistance, a complete assistance service, with nationwide coverage, for trucks, minibuses, Sprinter and automobiles. Through the Customer Relations Center, which is available 24 a day by dialing 0800 9709090, customers have a variety of services available to them, such as mechanical assistance, towing services, shuttle services, taxi and lodging, among others. Other Post-Sales Benefits Genuine Replacement Parts Mercedes-Benz offers the market a rapid and complete line of replacement parts, helping to streamline maintenance and repairs. With this, the customer’s vehicle spends less downtime in the garage, resuming its transportation activities as soon as possible. The parts are dispatched from the Parts Logistics and Distribution Center, located at the unit in Campinas (SP). This center stores approximately 130,000 items in its 83,000 square meter inventory area, shipping an average of 2,000 tons of parts per month. Added to the wide availability, these genuine parts are also competitively priced, particularly the most requested items, with 12-month, unlimited-kilometer guarantees and the standard of quality and durability of the brand’s parts, which results in excellent value for the money. Since 2013, the acquisition of these parts has also been possible using the e-commerce platform available through the Mercedes-Benz Offers Panel – the widely known channel for genuine items, which can be found on the Company’s website. An active chat function was also created to answer questions and provide replacement parts. The tool also provides other facilities, such as information about products, applications and photos of the parts, standardized in accordance with factory settings. Another advantage is the integration with the physical inventory of dealers in order to provide information about the availability of replacement parts. Remanufactured Parts Mercedes-Benz is also focused on providing remanufactured parts. It has been systematically increasing the RENOV line portfolio, with items for trucks, buses and the Sprinter light commercial vehicles. The Company wants to consolidate this range of products as a market reference and advantageous alternative for customers to renew their vehicles. Launched in 2004, with mechanical and electronic engines, the RENOV line has been gradually expanded with different options for transmissions, brakes, starters, injection units and differential kits. Beginning in 2012, it also began providing turbines and a variety of alternators, compressors, multi-valve heads, oil pumps and water pumps. The supply of remanufactured parts if a global trend that assures customers parts of new quality at a lower cost. The price of these items can be as little as 55% of the price of a new part. The guarantee is good for 12 months, with no kilometer limit, and it is valid throughout Brazil. Used parts can also be given as part of the payment for a RENOV item, significantly reducing the maintenance costs. In addition, the remanufacturing of parts strongly contributed to environmental preservation, in that it reduces the use of raw materials, as well as the disposal of materials into the environment. Due to these advantages, the RENOV portfolio has been very successful in the Brazilian market, with the sale of more than 82,000 units, of which approximately 37,000 were engines, over 13,000 were transmissions and approximately 25,000 were clutches, as well as the other items. 2012/2013 Sustainability Report 49 Mercedes-Benz has also recorded significant growth in the sale of Mercedes ServicePlus maintenance contracts for trucks and Sprinter light commercial vehicles in the Brazilian market Maintenance Contract Mercedes-Benz has also recorded significant growth in the sale of Mercedes ServicePlus maintenance contracts for trucks and Sprinter light commercial vehicles in the Brazilian market. In 2012, approximately 6,000 plans were acquired and, in 2013, approximately 9,000 plans were acquired with the brand’s dealers. The maintenance contract is designed to ensure the predictability of the vehicle maintenance costs, providing nationwide service through the Mercedes-Benz Dealer Network. Currently, Mercedes-Benz offers this service in three different modes: Lube Service: This covers the oil changes for the components (engine, transmission and axles), oil filter in the engine and labor during the ranges established in the vehicle’s Maintenance Manual. In addition, Lube Service provides customers with more safety, using the oils approved by the factory. Basic Service: This covers preventive inspections, in accordance with the type of operation, for a period of five years. Full Service: This complete package includes the preventive inspections and the corrective maintenance, ensuring winch service and mechanical displacement during the contracted period. Genuine Oil Through its dealer network, Mercedes-Benz supplies the market with genuine Mercedes-Benz oil. This line of lubricants was specifically developed for trucks, buses and Sprinter vehicles, and is available in engine, differential and transmission oil versions. This lubricant meets all of the specifications of the engines, including those required by the Euro 5 legislation. Successfully used in approximately 30 countries, Mercedes-Benz oil is consumed by five million customers per year. Specifically produced for the brand’s commercial vehicle technology, it ensures many advantages, such as better performance through reduced internal friction, reduced wear on the internal parts of the engine and reliable lubrication in all situations. Training for Customers In order to strengthen the relationship with customers and help them ensure the maximum profitability offered by its products, Mercedes-Benz offers specific courses for the owners of the brand-s commercial vehicles, offered in person or online. Since 1982, more than 200,000 drivers and monitors have been trained, with 6,000 professionals receiving training in 2012 alone, which totals approximately 140,000 hours of theoretical and practical instruction. The courses are taught by approved instructors, who specialize in the field and are frequently updated by the Company. Mercedes-Benz Bank The financial arm of Mercedes-Benz, which offers, together with the experience and credibility associated with the brand, the best financing and insurance options for its trucks, buses, Sprinters and automobiles. The financing line offers products such as CDC, BNDES Finame and Leasing, as well as insurance options with a variety of advantages and coverage levels, such as Comprehensive Insurance on the Financing and Extra Protection Insurance. Find out more at: www.bancomercedes-benz.com.br. 2012/2013 Sustainability Report 51 Strategy and Management The administrative body of Mercedes-Benz underwent changes between 2012 and 2013. Find out more over the next few pages. 2012/2013 Sustainability Report 53 Roberto Leoncini: Roberto Leoncini holds a degree in Mechanical Engineering and a graduate degree in Business from the University of Irvine, in California, as well as an MBA from Fundação Getulio Vargas. With extensive experience in the commercial area of the trucks and buses segment, he has already served as a district representative, moving on to serve large fleet owners, serving as a manager, sales director and supervisor of commercial operations in Brazil. In 2014, he became Vice President of Marketing, Sales and Post-Sales for Mercedes-Benz Trucks and Buses in Brazil, with significant work involving dealer networks, in order to ensure that quality products are combined with excellent services. Management Structure GRI 4.1 Philipp Schiemer, President of Mercedes-Benz do Brasil & Head of Latin America (assumed office on June 1, 2013); Wolfgang Hänle, Vice President of Operations and Chief Operating Officer (COO) (assumed office in June 2013); Roberto Leoncini, Vice President of Marketing, Sales and Post-Sales for Mercedes-Benz Trucks and Buses (since 2014); Fernando Fontes Garcia, Vice President of Human Resources (since 2012); Walter Sladek, Vice President of Truck and Component Development (assumed office in June 2013); Hetal Laligi, Vice President of Finance and Control (assumed office on September 1, 2013). Philipp Schiemer: Philipp Schiemer holds a degree in Economics from the University of Cooperative Education of Sttutgart, Germany. He has more than 20 years of experience in the automotive sector, with 14 years of experience in Brazil, where he has worked on all of the product lines (trucks, buses, vans and automobiles). In June 2013, at age 48, he became the President of Mercedes-Benz in Brazil, with the responsibility of leading the operations of the Company, which is the largest manufacturer of commercial vehicles in South America and concentrates the manufacture of engines, transmissions and axles used in its products. Fernando Fontes Garcia: Fernando Fontes Garcia holds a degree from the School of Law of São Bernardo do Campo, Specialization in Human Resources from the Fundação Getulio Vargas and an MBA from FIA – USP. Garcia has more than 25 years of experience in the area of Human Resources, with vast experience and familiarity with high performance team formation processes and negotiations in various industry segments, including the domestic automobile sector. In 2012, at age 49, he became the Vice President of Human Resources of Mercedes-Benz do Brasil. In this role, he is responsible for the Company’s Human Resources strategies and operations in Brazil, including Training, Qualifications and Recruitment, as well as Labor Consulting and Union Relations at the units in Argentina, Colombia and Venezuela. Hetal Laligi: Hetal Laligi holds a degree in Administration, with a specialization in Finance, and 20 years of experience with the Daimler Group, in Germany, Singapore and Brazil. Between 2000 and 2004, Laligi worked at Mercedes-Benz do Brasil as an executive advisor to the CEO for Latin America. His trajectory at Daimler includes experience in areas such as Supply & Logistics, Marketing, Control, Finance and Treasury, among others. From January 2011 until August 2013, he had been serving as the Executive Officer for Sales Control of the Mercedes-Benz Cars Division, in Germany. Now age 40, he is the new Vice President of the Finance and Control area of Mercedes-Benz do Brasil, where he works on synergy in order to verify trends and translate the needs of the customer into engineering projects and, consequently, into vehicles with excellent cost/benefit ratios. Wolfgang Hanle: Wolfgang Hanle holds a degree in Engineering, with a focus on production techniques, from the Polytechnic School of Ulm. He joined the Company in 1995, after the company where he worked, Karl Kässbohrer GmbH, was acquired by the Daimler Group. With more than 30 years of experience in the area, Wolfgang Hanle worked in Brazil between 2004 and 2007, responsible for the bus operations in Latin America. In 2013, at age 59, he became the Vice President of Operations at Mercedes-Benz do Brasil and COO. In this position, he is responsible for implementing a structure for buses and he will take over the production, planning and quality control of the operation, through the construction of a functional department with control, sales, post-sales, services and development sectors, in order to oversee the evolution of the business. As such, Wolfgang Hanle is responsible for the areas of Trucks, Buses, Components, Purchasing, Logistics and Planning, leading the production of the Daimler Group’s largest commercial vehicles factory outside of Germany. Walter Sladek: Walter Sladek holds a degree in Mechanical Engineering from the University of Aachen and a doctorate from the University of Hannover. He has worked in the automotive industry for more than 17 years, specifically in the Daimler Group. Sladek has served at factories around the world, including in Germany, the United States and Turkey, acquiring experience in “Research & Development” and “Vehicle and Component Production”. Prior to coming to Brazil, he was responsible for the development of Mercedes-Benz trucks in Turkey. In Brazil, Walter Sladek served as the Company’s Executive Officer for Truck & Component Development for four years. In 2013, at age 41, he became the Vice President of Truck and Component Development at Mercedes-Benz do Brasil. In addition to the President and Vice Presidents, Mercedes-Benz do Brasil has an executive board composed of 22 members. 2012/2013 Sustainability Report 55 Strategic Objectives Profitable Growth Generate sustainable profitability and be a reference in Brazilian industry Achieve planned profitability levels, generating efficiency in the purchase of materials as planned Comply with the established budget, reaching the planned revenue and contribution margin with Genuine Parts Superior Products and Customer Satisfaction Offer products with highly competitive prices and quality Achieve the customer satisfaction indices (CSI/AEP), maintaining the warranty costs below the planned amount Contribute to improving the quality of our suppliers, achieving the planned Audit Note Leadership in Innovation and Technology Mercedes-Benz’s strategic objectives include Profitable Growth and Leadership in Innovation and Technology Offer technologically innovative products within the planned timeframe Launch new truck and bus products with guaranteed quality and within the planned timeframe Achieve the planned lead time for solving problems in the field Global Presence and Integration Establish a leadership position in both the domestic and foreign markets Achieve the planned share of sales volume in the domestic market and achieve the planned export volumes Achieve Banco Mercedes-Benz’s planned share of financing for commercial vehicles and automobiles Leading Brands Be a reference in brand quality on the market Be a leader in brand quality in the segments in which we operate Operational Excellence Be a company with excellent internal processes Achieve the goals of MB Trucks #1 - MBBras Turnaround, consolidating its implementation in all areas, as planned Maintain the new vehicle inventory within the planned amounts Maintain the Integrated Management System (IMS) certification Achieve the environmental objectives and targets by focusing on economizing natural resources, increasing recycling and reducing waste Inspired, High Performance Personnel Have motivated employees and set the standard for workplace quality Promote the values of the Daimler Group: Passion, Respect, Integrity and Discipline Meet the requirements of the Code of Ethics and the compliance requirements of the Daimler Group 2012/2013 Sustainability Report 57 PROCONVE P7 - Euro 5 The Automotive Vehicle Air Pollution Control Program (PROCONVE) was created in 1986 by the National Environment Council (CONAMA), through CONAMA Resolution 18/86, whose purpose includes the reduction of emissions by automotive vehicles in order to meet the Air Quality Standards set by the National Air Quality Control Program), particularly in urban centers. PROCONVE P7 (Heavy Vehicles 7) is the seventh phase of this program for heavy vehicles – vehicles with Total Gross Weight (PBT) in excess of 3,856 kilograms. This phase was established by CONAMA Resolution 403/2008. P7 is equivalent to the European regulations on the emission of gases and particulate matter, known as Euro V. All heavy vehicles, produced as of January 1, 2012, and sold in Brazil, must comply with PROCONVE P7, which translates into the following emissions reductions: 60% of Nitrogen Oxides (NOx), 80% of particulate matter (PM), 27% of carbon monoxide (CO), 30% of total hydrocarbons (THC) and 37% of the smoke emitted by their engines, when compared to the predecessor products – PROCONVE P5 (Euro III). PROCONVE P7 required technological advances in the engines, in their manufacture (lower tolerance), in the measurements (much more precise) and in the Brazilian commercial vehicles themselves, as these new emissions limits are much more restrictive and will require, as of January 1, 2015, an emissions guarantee of 500,000 km for vehicles with PBTC greater than 16,000 kilograms, versus the current 160,000 kilograms. The Automotive Vehicle Air Pollution Control Program (PROCONVE) was created by the National Environment Council (CONAMA) to reduce automobile emissions The basic condition for the introduction of PROCONVE P7 in trucks and buses was the availability of better quality diesel fuel with a maximum sulfur content of 50 ppm (Diesel S50). Diesel S10 is now available throughout the country, alongside Diesel S500. For the manufacturers of commercial vehicles who have opted to use the Selective Catalytic Reaction (SCR) technology, there needed to be an availability of ARLA32 (NOx Automotive Liquid Reducing Agent, with 32.5% technical urea), more widely known as AdBlue in Europe and Diesel Exhaust Fluid (DEF) in the United States. The latter is also available nationwide. Mercedes-Benz do Brasil opted to use SCR technology, known as BlueTec5, for its trucks and buses. It optimizes the combustion in the engine, in order to improve performance, lower fuel consumption, lower thermal rejection, lower emissions of particulate matter and treatment of NOx in the engine’s exhaust system, through SCR with the injection of ARLA32. For light commercial vehicles, in which the engines are used in partial loads for most of the time, such as Mercedes-Benz do Brasil’s Sprinter Vans, the best option is to reduce the NOx emissions in the engine, using a system for recirculating the exhaust gases via BlueEfficiency technology. As such, part of the exhaust gases is diverted to the air intake system, which allows the combustion flame front to remain cooler, producing less NOx. The requirements of PROCONVE P7, which require the introduction of a new emissions control systems technology for heavy-duty vehicles, trucks and buses, and higher prices for Diesel S50/ S10, resulted in a retraction in the truck market in Brazil in 2012 and 2013, impacting the results of Mercedes-Benz do Brasil. 2012/2013 Sustainability Report 59 MB Trucks #1 - MBBras Turnaround All of Mercedes-Benz do Brasil’s professionals are currently involved in a major program to resume the Company’s growth, known as MB Trucks #1 - MBBras Turnaround. It is a consolidator of several projects focused on improving the expenses and financial efficiency of Mercedes-Benz do Brasil within a comparable basis. The goal is to return the Company to a level of competitiveness that is capable of making it the leader in the Brazilian truck market in 2015. This is why the program is aligned with the Table of Targets, helping to translate them to employees’ daily routines. This generates a virtuous cycle, given that once one of the Company’s targets has been attained, a target from the Program is also attained. Employees thereby play an essential role in the success of MB Trucks #1 - MBBras Turnaround, with constant updates on the functioning and stages of the program, as well as incentives to contribute to more efficient processes through innovative ideas. Energy Efficiency Project GRI EN5 Under the MB Trucks #1 - MBBras Turnaround, there is an important project focused on achieving better energy efficiency at the factory in São Bernardo do Campo. It seeks to reduce operating costs and contribute to better environmental performance through improved use of energy inputs in the productive and administrative processes. The project has two main areas of activity, as follows: 1 – Identification and elimination of the unnecessary consumption of electricity and other inputs (water, natural gas, etc.). In this area of operation, highlights include the total or partial shutdown of machines and equipment used in the factory’s productive and administrative processes at times when there is no demand for their use or there is only a partial demand (ex.: automation of lighting/air conditioning systems and showdown of utility machines, equipment and infrastructure during nonproductive hours) and the reduction of losses though compressed air leaks in the disassembly networks and machine tools. 2 – Studies on the viability of implementing more efficient technologies. In this area of operations, highlights already include studies on the application of LED technology in the lighting systems (through retrofitting or total replacement), studies into solar heating for water used in locker rooms and studies into changing the operating cycles of machine tools, with the implementation of additional components and automation focused on reducing the consumption of energy inputs per part and/or component produced. At the same time, the factory relies on its maintenance employees to identify opportunities for improvement in general, including those related to the consumption of raw materials. The area has 400 employees and has already implemented 65 ideas for improvement related to this issue. With initiatives of this type, Mercedes-Benz do Brasil has been able to gradually reduce its energy consumption at the São Bernardo do Campo factory. Over the last ten years, the decline in kilowatt hours per vehicle totaled 15%. In 2012, as a result of the MB Trucks #1 - MBBras Turnaround, consumption totaled 162,243 MWh, providing a reduction of 3.4% in relation to the planned consumption of 167,889 MWh. In 2013, this reduction totaled 4.2%, with 175,172 MWh consumed versus 182,842 MWh planned. 2012/2013 Sustainability Report 61 Management of Targets At the beginning of each year, Mercedes-Benz releases its targets for the period, in order to encourage the engagement of all of the Company’s employees, as well as disclose, clearly and objectively, the results that are expected. The targets are presented via the ScoreCard system – a methodology adopted at all of the Daimler Group’s units around the world to standardize the application of proposals – in which they are visually represented in the form of a pyramid, with base grounded on the importance of promoting the corporate values: Passion, Respect, Integrity and Discipline. At the top, Profitable Growth is shown as the Company’s main goal. The proposed targets also take into account, among other indications, that of avoiding rework and increasing the efficiency of processes, ensuring the delivery of products within the stipulated timeline, working without accidents, complying with the requirements of the Code of Integrity and the Compliance requirements of the Daimler Group, as well as maintaining the current Social Responsibility programs. Each year the targets are revised, adjusted based on the current economic situation and inserted into the ScoreCard. To achieve the planned results, all of the work must be based on seven dimensions: Profitable Growth (top of the pyramid), Superior Products and Customer Satisfaction, Leadership in Innovation and Technology, Global Presence and Integration, Leading Brands, Operational Excellence and Inspired, High Performance Personnel. The seven dimensions are split into general goals, which allow for the integration of each dimension into the daily routine of the organization. Since the beginning of the implementation of MB Trucks #1 - MBBras Turnaround, Mercedes-Benz do Brasil’s targets have also entered into dialogue with this program, which helps makes them even easier to translate so that they can be understood and incorporated into the daily routine. Truck Operating System (TOS) The Truck Operating System (TOS) is a comprehensive management system of Daimler Trucks, which brings together different methods and tools, with a focus on high performance. Its methodology, coupled with a philosophy of continuous improvement, is a key component in the Company’s ability to achieve operational excellence and reach its long-term business goals. The TOS is therefore essential to the success of MB Trucks #1 - MBBras Turnaround. To guide its employees in its practical application, the Daimler Group is adopting the Nine Lean Principles. The term was adopted in the late 1980s in a research project by the Massachusetts Institute of Technology (MIT) into the global automotive industry. The term Lean is now used to refer to a strategy focused on increasing customer satisfaction through an improved use of resources. Lean adds guidelines that contribute management’s understanding about what TOS expects from each team and what the principles strategic decisions are in their daily routines. To reinforce the importance of these concepts as a part of the daily routine, Daimler developed the “TOS Guide. Nine Lean Principles. A Philosopy.”, with details about the system and the principles, practical guidelines and recommendations for the self-assessment of managers. The materials were distributed to the employees of Mercedes-Benz do Brasil and are available for consultation on the Company’s intranet. The Nine Lean Principles Take the long view – invest in tomorrow’s profits today. Go and see. Imagine you were your customer. Only empowered people produce powerful performance. Share openly and borrow proudly. Choose the process focus. Learn quickly from triumphs and from tragedies. Respect, support and challenge your partners and suppliers. Keep it simple. * Lean is a business strategy that aims to increase customer satisfaction through an improved use of resources. The term “lean” was coined in the late 80’s in a Massachusetts Institute of Technology (MIT) research project into the global automotive industry. Visit the Lean Institute of Brazil website: www.lean.org.br. 2012/2013 Sustainability Report 63 In 2013, Mercedes-Benz do Brasil announced that it will invest approximately R$1 billion in its truck and bus factories in Brazil during the 2014/2015 biennium Investments Investments in the Truck and Bus Factories in Brazil Construction of the New Automobile Factory In 2013, Mercedes-Benz do Brasil announced that it will invest approximately R$1 billion in its truck and bus factories in Brazil during the 2014/2015 biennium. This significant volume of funds will be directed towards researching and developing new products and technologies, the production of the Actros heavy-duty truck line in Brazil, process improvements and the modernization of production areas, among other actions. Social and environmental projects are also part of this significant investment plan, Company plants will benefit in the cities of São Bernardo do Campo (SP) and Juiz de Fora (MG). Beginning in 2016, Mercedes-Benz do Brasil will resume production of automobiles on Brazilian soil. To do this, the Company is building a factory in Iracemápolis, in the interior of São Paulo state. The attractive business scenario and the viability created by Inovar Auto, an initiative launched by the federal government to encourage investment in the domestic automobile industry, were the triggers behind Daimler’s decision to resume production in Brazil. Inovar Auto provides financial benefits such as financing at lower rates, tax and fiscal incentives and credit line incentives. The Company is responsible for the largest investment plan in the industry. Together with previous investment, the total amount will reach R$3.2 billion until 2018, invested in Brazil between 2010 and 2015, with highlights including the opening of the new truck factory in Juiz de Fora and the increase in production capacity in São Bernardo do Campo. The new allocation of resources reaffirms the Daimler Group’s belief in Brazil, in its economy and in the potential of the Brazilian market for commercial vehicles, which is one of the top markets for the Mercedes-Benz brand worldwide. Brazil is now the fourth largest passenger vehicle market in terms of sales, yet only seventh in terms of production, which represents an opportunity for new domestic manufacturers. The premium market in Brazil, which encompasses Daimler’s vehicles, is experiencing the highest growth. The new investment aims to make the Company increasingly competitive in a highly disputed market, such as present-day Brazil. Mercedes-Benz may also contribute decisively to the evolution of the domestic automobile industry, generating complete solutions for all of the demands of cargo and passenger transport. The phases of the factory project are preplanning, planning, environmental licensing and construction. The land for the unit is approximately 2 million and a half square meters in size, which includes an environmental protection area. Production tests are scheduled to begin in late 2015 and operations are expected to launch in early 2016. The production capacity in the first phase will be 20,000 automobiles per year. Beginning in 2019/2020, this is expected to increase to 50,000 units per year, depending on market demand. The factory is also being designed to have forms of environmental preservation systems. The choice of Iracemápolis for the installation of a new factory was based on its geographic position. The city is located in Campinas and has excellent access infrastructure. It is also close to the Company’s main suppliers in Brazil, as well as the country’s main centers of consumption. 2012/2013 Sustainability Report 65 Sustainability at Mercedes-Benz do Brasil The following pages include operational, financial, environmental and social information about Mercedes-Benz do Brasil. 2012/2013 Sustainability Report 67 Operating and Financial Performance The Concept of Sustainability Generally, the concept of sustainable development is supported by three pillars made up of multiple dimensions that, when taken together, allow people “to meet the needs of the present without compromising the ability of future generations to meet their own needs” (Brundtland, Gro Harlem. Report of the World Commission on Environment and Development, 1988). The term was utilized for the first time in the 1980s by the Prime Minister of Norway, Gro Harlem Brundtland, when she presided over the World Commission on Environment and Development. In the business context, sustainability seeks to ensure the success of the business over the long term, while at the same time contributing to the economic and social development of the community, a healthy environment and a stable society, according to the concept formulated by John Elkington that became widely known at the Triple Bottom Line. In practice, this concept considers the Economic, Social and Environmental dimensions as criteria for evaluating business performance, always seeking to answer the question: How can we establish lasting businesses without harming the planet and those who live here, while offering, at the same time, the best products and services, creating wealth for investors and opportunities for the surrounding communities. The application of Euro 5 (Proconve P-7 – see page 59) legislation in Brazil in 2012 and its attendant uncertainties impacted the commercial vehicle market as a whole, including Mercedes-Benz. In the period, the Company’s production fell 54.0% in relation to 2011, while sales to the domestic market and exports dropped 21.4% and 10.1%, respectively. Total revenue was approximately R$10.0 billion. jumped up approximately 9% and 5%, respectively. Revenue totaled approximately R$16.3 billion, up 64.6% over 2012. Operating and financial performance by vehicle type is show in the table and charts below. In 2013, with Euro 5 already more established, the market began to grow again. The production of Mercedes-Benz do Brasil increased 34.2% for the period, while sales to the domestic market and exports The performance of Mercedes-Benz do Brasil in this regard is reported in the following pages. Revenue of Mercedes-Benz do Brasil in 2012 and 2013 (R$ thousand) Domestic Export Total 2012 8,448.1 1,447.5 9,895.5 2013 14,319.0 1,971.5 16,290.4 Total 22,767.1 3,419.0 26,186.0 Precepts for sustainable business operations Commercial Vehicle Production (in units) Shareholder rights Economic impacts on society Customer and supplier relations Economic Dimension Economic results 21,228 2013 47,072 2013 18,690 2012 32,192 2012 28,078 2011 50,265 2011 26,582 2010 47,092 2010 SUSTAINABILITY Human rights Labor rights Community involvement Ethical posture Social Dimension Environmental Dimension Conservation of natural resources Eco-efficiency Waste management Risk management Transparency Buses Trucks 2012/2013 Sustainability Report 69 Exports (in units) Domestic sales (in units) Models licensed over 3.5 tons 13,661 12,763 Buses 2013 2012 38,137 2013 8,379 2013 5,753 2013 34,652 2012 7,868 2012 5,601 2012 2011 5,212 2011 4,838 2010 14,962 2011 42,592 2011 9,614 14,319 2010 40,851 2010 11,035 2010 Trucks Buses Trucks 2012/2013 Sustainability Report 71 Environmental Performance Mercedes-Benz do Brasil adheres to the environmental responsibility guidelines issued by the Daimler Group. These guidelines are multiplied at all points along the organization’s chain of production, in order to establish a common standard of performance and support a commitment to preserving the environment. This action translates into a commitment to environmental quality, founded on take due care with waste, water, air and soil, legal compliance, eco-efficiency, and dissemination and awareness. The actions to take based on these pillars are determined by the Environmental Management System (EMS). Mercedes-Benz do Brasil adheres to the environmental responsibility guidelines issued by the Daimler Group Disclosure and awareness Eco-efficiency Legal compliance Air, water, soil Waste Environmental Quality Environmental Management System Environmental Principles of Mercedes-Benz do Brasil Face the environmental challenges of the future by working continuously to improve the environmental performance of processes and products; Develop products that, in their respective market segments, are environmentally responsible; Plan all of the production stages for the rational use of resources and inputs, minimizing the generation of waste, preventing impacts and pollution and optimizing environmental production; Promote actions to protect biodiversity, reduce greenhouse gas emissions and identify opportunities to mitigate the impacts of climate change; Monitor the environmental indicators of processes and evaluate the performance of executives with respect to meeting environmental targets; Offer customers information and services oriented towards promoting reverse logistics and environmental protection; Continuously seek exemplary environmental performance and develop environmentally responsible suppliers of products, transportation and other services; Provide employees and the general public with transparent information about environmental protection. 2012/2013 Sustainability Report 73 Environmental Management System The Environmental Management System (EMS) implemented by Mercedes-Benz do Brasil integrated Quality Management and Occupational Health and Safety Management. It is organized in the form of a manual complemented with management documents, denominated Procedures, and operational documents, denominated Work Methods, Work Instructions, Environmental Instructions and Emergency Response Plans, among others. These materials cover the mechanisms for monitoring and controlling the performance of Mercedes-Benz in complying with legal requirements and preserving natural resources, and they allow for the improvement of productive, administrative and commercial processes to provide for the ongoing improvement of the Company’s activities. Employees can access them via the intranet or through the posters displayed in the workplace. The workforce, as well as suppliers and members of the community, continually receive training on these issues and the management system as a whole. Procedures regarding the environment Identification of Aspects and Hazards and Evaluation of Controls Legal Requirements and Other Requirements Internal and External Communications Skills, Training and Awareness Identification and Evaluation of Emergency Situations Audit of the Integrated Management System Improvement, Corrective and Preventive Action (PDCA Method) Environmental and Occupational Health and Safety Monitoring Plans Hazardous Materials Management Solid Waste Management Wastewater Management Emissions Management Planning and Identification of Environmental Aspects and Future Occupational Hazards Materials and waste covered by the environmental instructions General waste; Plastics; Glass; Aluminum cans; Paper and cardboard; Wood; Food waste; Clinic waste; Oil emulsion; Liquid waste; Solid and liquid waste; Assorted waste contaminated with oil and paint; Sludge from Wastewater Treatment Plant (WWTP); Industrial waste; Atmospheric emissions; Batteries; Empty drums; Light bulbs; Toners and cartridges; General scraps; Drums; Industrial batteries; Industrial towels for cleaning. The Environmental Management System (EMS) implemented by Mercedes-Benz do Brasil integrated Quality Management and Occupational Health and Safety Management 2012/2013 Sustainability Report 75 Mercedes-Benz Award for Environmental Responsibility Since 2010, Mercedes-Benz has given an Environmental Responsibility Award in order to encourage its stakeholders to also adopt environmentally responsible practices, thereby extending its concern for this issue throughout the entire chain of production. Beginning in 2011, the award was also extended to Mercedes-Benz dealers. Projects that show the best experiences developed by these organizations can be nominated. The award aims to recognize solutions that are already in place and encourage the adoption of new ones that will allow for sustainable development. Eight winners are chosen, including three in the “Suppliers” category, two in the “Dealers” category and another three from among the truck and bus units. The winners are announced, beginning in December, at the Interaction Awards (suppliers) and at the Star Class Convention (dealers). Since 2010, Mercedes-Benz has given an Environmental Responsibility Award to encourage its stakeholders to adopt environmentally responsible practices Environmental Responsibility Award for Suppliers Company 2013 – 4th Annual Award for Environmental Responsibility Project Description Ripack Embalagens Ripack has been operating in the packaging market for nearly twenty years. It won the Award for its “Sustainable Production Design” project, which includes numerous sustainable actions adopted by the company in the design of its production plant, in planning its processes and products, in the use of raw materials and inputs, as well as the minimization of social impacts. Schaeffler Brasil Ltda. Schaeffler took second place with its “Mineral Oil Reuse” project, which consists of a mineral oil filtering and analysis process that allows for its reuse. It also allows for the disposal and recycling of sludge briquettes. The recovered oil is used to supply all of the Company’s Oil Centers. Magneti Marelli Cofap Magneti was elected in third place with the “Reactive Energy Reduction” project, which demonstrates efficient energy management, with consequent resource savings through the elimination of reactive energy collections (energy generated in induction motors, transformers and other equipment) and the use of automatic capacitive compensation. Company 2012 – 3rd Annual Award for Environmental Responsibility Project Description Santos Brasil Santos Brasil was awarded first prize for its Sustainable Driver Program, developed to reduce fuel consumption by the vehicles in its fleet, safety risks, emissions and maintenance costs, without compromising on deadlines. ZF do Brasil Ltda. ZF came in second place with the “PET PAN” project, carried out in partnership with the Professor Antônio Nascimento State School and its students, as well as residents of the neighboring low-income communities (Beira Rio, Naval and Coca), in São Bernardo do Campo. The objectives include raising awareness within the community regarding environmental issues, eliminating the improper disposal of bottles and generating income for the school through the sale of the material. Acumuladores Moura S.A. The company came in third place with the Tareco e Mariola Program, which is focused on providing management assistance to 23 schools and implementing the Association of Recyclable Materials Collectors and Artisans. 2012/2013 Sustainability Report 77 Environmental Responsibility Award for Dealer Automobile dealers 2013 – 3rd Annual Award for Environmental Responsibility City Project Description Company Nova Europamotors Comércio De Veículos Ltda. Campinas Planting Citizenship: Planting tree seedlings in order to contribute to carbon neutralization. Offering lectures on environmental topics and issues with the participation of volunteers, involving the entity’s special needs children. DVA Auto Comércio de Veículos Ltda Itajaí Green IT: Reduction of three environmental impacts: Electricity Consumption, Paper Consumption and Electronic Waste. With significant results: Reusing an average of 3,000 sheets/month and saving approximately 9,000 sheets with two-sided printing; Donation of more than 1 ton of electronic waste; Server virtualization; Utilization of virtual desktops; Acquisition of more efficient equipment; Use of tools to extend the useful life of desktops, etc. Commercial vehicle dealers Company 2012 – 2nd Annual Award for Environmental Responsibility City Project Description Pinus Automóveis Ltda. Brasília Neutralization of scheduled CO2 emissions from the vehicles in its fleet through the planting of tree seedlings. Campo Grande Comércio e Administração Ltda. Campo Grande Project focused on reducing photocopies, printing and energy consumption. Company 2013 – 3rd Annual Award for Environmental Responsibility City Project Description Guanabara Diesel S.A Comércio e Representações Rio de Janeiro Solar Energy: Installation of solar energy heating in order to supply energy to the restaurants and locker rooms. Pirasa Veiculos Ltda. Campinas Water and oil don’t mix: Residential cooking oil recycling program. For every 50 liters of oil collected, Pirasa donates R$25.00 to the Dias de Cruz Assistance Center. Pirasa Veiculos Ltda. Limeira Doing good by using less: System of channels and cisterns for water storage, seeking to reduce water consumption for vehicle cleanings, plant watering, etc. Sorting recyclable and organic waste, and sending products that will no longer be used to recycling cooperatives. Divesa Distribuidora Curitibana de Veículos Ltda. Curitiba Racing Starclass: Increase in the separation of recyclable materials with an incentive campaign that gives prizes and reinforces the company’s commitment to quality targets. Company 2012 – 2nd Annual Award for Environmental Responsibility City Project Description Comveima Vitória da Conquista Environment and Citizenship 2012: Program developed to conserve resources, including human beings, as part of the environment. Vd Comércio de Veículos Ltda. Serra Garbage, No! Bags, Yes!: A project to recycle and reuse the banners featured in internal and external marketing initiatives in order to reduce waste and increase the life cycle of those materials. Dulex Veículos LTDA São Miguel do Oeste Environmental Sustainability: Internal program composed of leak/spill containment systems, green marketing, environmental training, effluent and emissions treatment, waste management program, a new tank for used oil and the use of rainwater. 2012/2013 Sustainability Report 79 Cleaner Production GRI EN18 Being self-sufficient means supplying the goods and services that meet human needs and increase quality of life while, at the same time, progressively reducing ecological impacts. For Mercedes-Benz do Brasil, this objective translates into being able to produce more an create more value with less resources and less generated waste. Mercedes-Benz do Brasil has always been concerned with these issues and its approach was further strengthened with the 2005 launch of the Cleaner Production Program (P+L). This program aims to add environmental and economic value to the Company’s products by identifying the root cause of the pollution generated by its processes, products and services, as well as alternatives to eliminate or reduce the generation of effluents, waste and emissions, rationalizing the use of raw materials and inputs, and increasing the reuse and recycling of materials. The P+L guidelines are disseminated among employees, who are trained to continually develop projects related to preserving the environment. Example of this are described below. Separation of plastic at the Waste Center The São Bernardo do Campo unit changed its process for evaluating plastic materials, separating them according to their recycling potential. Recyclable plastics that had previously been disposed with general waste, generating a cost of approximately R$75 per ton, are now sold as “hard plastic.” With this initiative, the cost has been eliminated and the Company is earning a profit from the sales. Waste reduction in the warranty inspection area Previously, the dealers sent the Campinas Unit parts for warranty inspection along with oil, diesel and coolant samples. As these fluids do not need to undergo laboratory analysis, the Unit stopped receiving them, eliminating the need for the correct disposal of these samples and, as a result, the related costs. The previous practice resulted in the shipment of 400 liters of oil every six months to the Effluent Treatment Plant. Reduction in clean and dirty polypropylene disposal In Campinas, many of the inputs used by the unit come packaged in polypropylene, which had been disposed of in the contaminated waste drum, generating a high volume of waste. The area then began receiving the parts without this packaging, which eliminated the disposal of this type of waste, which costs R$650 per ton discarded. 2012/2013 Sustainability Report 81 Environmental Indicators Waste Management Environmental Performance Index (EPI) Mercedes-Benz created the Environmental Performance Index (EPI) to measure its environmental performance and compare it on the same basis each year. The EPI includes indicators to be monitored and disseminated among employees to ensure ongoing improvement. The targets defined in the EPI include the consumption of water and electricity, the generation of hazardous solid waste and selective collection. Its importance for the Company can be measured by the fact that key executives have their bonuses tied to compliance, as is the case with the other strategic objectives. The format designed for the EPI accepts the insertion of new indicators based on the needs and interests of the Company. It also allows for the management of more significant environmental aspects and compensation between them. In addition, it allows for consumption to be measured per vehicle GRI EN22 EN26 produced. The results are monitored on a monthly basis, contributing to the Company’s ability to implement corrective actions in order to reach the targets. In 2012, the volume of waste generated by Mercedes-Benz do Brasil increased in relation to the 2010/2011 biennium. However, the decline in production and the mitigation initiatives resulted in a reduction in 2013, when the volumes reached levels similar to or lower than those of the previous years. Generation of Waste 2010 A database is currently under development as a means of ensuring the ongoing improvement of EPI management. Total Volume of Production 2011 2012 2013 116,080 111,799 86,710 85,509 3,382 4,168 8,338 2,925 2 385 153 576 3,385 4,553 8,490 3,501 11,272 11,669 10,944 10,702 Hazardous Waste Recycled (co-processed) in ton/year Mercedes-Benz created the EPI to measure its environmental performance Incinerated (ambulatory) – in ton/year Total Hazardous Waste Non-Hazardous Waste Recycled (industrial and domestic) – in ton/year Disposed (industrial and domestic) – in ton/year 3,962 8,153 8,635 2,804 Total Non-Hazardous Waste 15,234 19,822 19,579 13,506 Total Waste Generated 18,619 24,376 28,069 17,007 2012/2013 Sustainability Report 83 The targets defined in the EPI include the consumption of water and electricity, the generation of hazardous solid waste and selective collection Generation of hazardous waste (t/year) 2,925 2013 576 2013 8,338 2012 153 2012 4,168 2011 385 2011 3,382 2010 2 Recycled Hazardous Incinerated Hazardous Waste (Co-Processed) Waste (ambulatory) 2010 Generation of non-hazardous waste (t/year) 10,702 2013 2,804 2013 10,944 2012 8,635 2012 11,669 2011 8,153 2011 11,272 2010 3,962 2010 Non-Hazardous Disposed Waste Non-Hazardous Recycled Waste (Industrial and Domestic) (Industrial and Domestic) The Company usually has internal collection and transport logistics in which the waste generated by the various productive processes are disposed by the responsible areas outside of the buildings. This step is carried out by employees who are duly trained in the internal environmental procedures, which include the Selective Collection program, implemented in 1997. The disposal points are standardized, with the waste disposed in an organized manner based on its characteristics: hazardous, general waste, paper and cardboard, plastic, metal, wood and others. After it has been collected, the material is transported to the Recycling Centers (Class II) and Hazardous Waste Centers (Class I). General waste is collected by compactor trucks and sent directly to landfills. The hazardous waste is separated, identified, packaged and properly forwarded for final disposal by approved service providers in compliance with the legal requirements. To improve its disposal of this waste, Mercedes-Benz do Brasil has a system for reusing lubricating oil; a system for drying paint sludge; ultrafiltration equipment for oily emulsions; washable towels for industrial cleaning, which replace the disposable towels, and the use of a filter press at the Effluent Treatment Plant to dry the sludge. The recyclable waste is subject to an operational process, which includes the receipt of a variety of packaging materials from the production processes, disassembly and sorting of its components based on the type of material (paper, cardboard, plastic and wood), compression or packaging and subsequent sale to approved customers, who use them as raw materials in their processes. 2012/2013 Sustainability Report 85 Water Consumption The Company usually has internal collection and transport logistics in which the waste generated by the various productive processes are disposed by the respons ible areas outside of the buildings GRI EN8 EN10 Mercedes-Benz do Brasil’s units consume water from the external supply system. In the 2012/2013 biennium, total consumption equaled 725,700 and 778,500 cubic meters of water, respectively. Of the total produced per year, 9.0% was reused in 2012 and 7.9% was reused in 2013. The reuse is carried out with water obtained from wastewater through reverse osmosis, from the effluent in compressor drains and the washing of fruits and vegetables at the restaurant. To reduce consumption, Mercedes-Benz has taken measures such as: installing flow reducers on faucets and showers; replacing toilets and showers; reusing water used for food hygiene; monitoring consumption; and periodic inspection of the equipment and facilities to eliminate any waste. It is important to note that each unit has a Wastewater Treatment Plant that enables disposal in accordance with the standards established by law. The effluent networks are separated based on the characteristics of the liquid being generated. Water consumption by type of use (m³/year) 2012 2010 2011 2013 Cooling water (m³/year) 156,574 152,840 139,679 133,146 Bathrooms/Cafeterias (m³/year) 384,609 422,544 324,365 316,589 Production (m³/year) 374,852 426,177 261,695 328,783 Total 916,034 1,001,561 725,739 778,518 Consumption and reuse of water (m3 per year) 725,518 669,739 2013 2012 53,000 56,000 Water used and discarded 2013 2012 Total water reused 2012/2013 Sustainability Report 87 Energy Consumption Atmospheric Emissions GRI EN3 EN4 GRI EN16 EN17 In 2012 and 2013, Mercedes-Benz do Brasil consumed 929,000 and 1.1 million GJ of energy, respectively. Of the 2012 total, 718,000 GJ came from hydroelectric energy – a renewable source – acquired from the public transmission system. In 2013, this amount totaled 790,000 GJ. Consumption in the 2012/2013 biennium was 14.6% lower than in 2010/2011, already as a result of the reduction measures associated with MB Trucks #1 - MBBras Turnaround (find out more on page 60). Mercedes-Benz do Brasil has developed a series of activities to control the atmospheric emissions from its production processes, such as the monitoring of these emissions, air quality monitoring, dispersion studies and mapping of all of the stationary and mobile sources, as well as a greenhouse gas (GHG) emissions inventory. and externally and the GHG Inventory is conducted in accordance with the criteria of the GHG Protocol methodology, one of the most commonly adopted and recognized tools worldwide. Atmospheric emissions from the production processes are monitored and controlled by Pollution Control Equipment, such as sleeve filters, after-burners and gas washers. Noises are monitored internally The result of the 2012 and 2013 Greenhouse Gas Emissions Inventories is shown, by scope, in the chart below: The rest of the amount consumed – 212,000 GJ in 2012 and 326,000 GJ in 2013 – corresponded to the energy from burning natural gas in the boilers, heaters, after-burners and the restaurant. Emissions per scope in tCO2eq Energy Consumption (in ‘000 GJ) 2013 43,184 2012 21,032 2013 12,483 2012 790 2013 326 2013 12,996 2013 718 2012 212 2012 17,344 2012 2011 267 884 924 Electricity 58,699 322 2010 2011 2010 Scope 1 Scope 2 Scope 3 Direct Emissions Indirect Emissions Indirect Emissions (optional) Stationary Sources Electricity Chartered Mobile Sources Solid Waste Treatment Industrial Processes Air Travel Fugitive Emissions Fertilizers Natural Gas 2012/2013 Sustainability Report 89 In 2012, the sources in Scope 1 at the Mercedes-Benz do Brasil factories were responsible for a majority of the emissions, with 43,184.46 tCO2e (59.15%) of total emissions. The Scope 2 emissions contributed 12,482.82 tCO2e, equivalent to 17.10%, while Scope 3 added 17,343.50 tCO2e to the total, representing 23.75%. In 2013, the Scope 1 sources totaled 58,698.93 tCO2e (63.37%), Scope 2 totaled 21,031.91 tCO2e (22.64%) and Scope 3 totaled 12,996.47 tCO2e (13.99%). In order to compare Mercedes-Benz do Brasil’s emissions with its production, a GHG emissions per product indicator was created. When the production volume increases, emissions often increase due to the higher use of fossil fuels. As such, the indicator makes it possible to determine if emissions increased or decreased in relation to production. The 2012 and 2013 results are shown in the table below. 2012 and 2013 Emissions vs. Production Total Production (‘000 units) Emissions per product (tCO2e) 2012 50.88 1.0941 2013 68.30 1.1696 Mercedes-Benz do Brasil has developed a series of activities to control the atmospheric emissions from its production processes, such as the monitoring of these emissions, air quality monitoring, dispersion studies and mapping of all of the stationary and mobile sources, as well as a greenhouse gas (GHG) emissions inventory There was an increase in the emissions volume from 2012 to 2013, mainly due to two components of the total emissions, which are independent of the production processes: Fugitive emissions related to refrigeration gases: The loss of gases from the cooling products are linked to the characteristics of the equipment and their use, with replacement cycles that do not occur on an annual basis. The amounts presented may have distortions, such as the nearly 100% increase from 2012 to 2013. At first glance, the increase of 12,763 tCO2e reported in 2013 in relation to 2012 should be subtracted from the total emissions so that the comparison can be made on an equal basis. Energy consumption from the electricity supply network: The electricity distribution network emissions factor is calculated taking into account all of the fuels consumed to generate the energy supplied. In 2013, the increase in consumption and lower than normal rainfall levels made it necessary to operate the thermoelectric plants as a backup supply. Given that the thermoelectric plants are run on fossil fuels, this caused a significant increase in the network’s average emissions factor, which reached 47%. As such, even without an increase in consumption, there was an increase in emissions. For example, if we apply the 2012 network emissions factor to consumption in 2013, we would have a reduction of 6,704 tCO2e in the calculated emissions. In order to reduce GHG emissions, several projects are being studied, such as: Replacement of air conditioning gases that result in GHG emissions; Adaptation of LPG forklifts to natural gas; Encouraging employee transport with chartered vehicles and the use of renewable fuels in private vehicles; Prioritization of recycling and composting of waste generated by the Company; Clean energy: Installation of solar panels, wind turbines, etc.; Promotion of sustainable incentives along the supply chain. 2012/2013 Sustainability Report 91 Soil Mercedes-Benz has an effective internal environmental audit program that checks on possible machine leaks, self-discipline in maintenance, cleanliness, deviations in the use of containment basins and deviations in the disposal of waste, among other types of monitoring. Integrated Pest Management The São Bernardo do Campo factory developed, in partnership with the company Voith, a technique called Integrated Pest Management (IPM) that is based on the study of the behavior of living beings in order to introduce alternative, environmentally-friendly methods that are just as effective as the spraying of insecticides in the landscape. The plant is close to the Billings Dam and a Permanent Preservation Area known as Serra do Mar, which magnifies the positive impact of this initiative. Mercedes-Benz has an effective internal environmental audit program Legal Compliance GRI EN28 The ethical behavior adopted by Mercedes-Benz in its business and customer relations also extends to its environmental initiatives. For the Company, it is essential to comply with all applicable environmental laws, to always remain updated with respect to legal trends and to monitor the Company’s situation with regard to environmental legislation in Brazil. All of the Company’s processes are licensed and all of the technical requirements for environmental licensing are met. The periods of validity for these documents are systematically monitored using an exclusive database that ensures that renewals occur on time. As a best practice, the internal system for managing applicable legal requirements is updated by a specialized legal consulting firm. This partnership is responsible for verifying and updating the Federal, State and Municipal Legislation and for preparing a list of topics that facilitates comprehension and the verification of compliance with these requirements. As a result of these actions, the Company did not register significant fines or sanctions in 2012 or 2013 that were the result of noncompliance with environmental laws and regulations. In addition to the legal requirements, Mercedes-Benz also complies with the guidelines of ISO 14001, and its units have ISO 14001 certification. The Company periodically audits its processes to identify potential deviations and implement the necessary corrective measures. 2012/2013 Sustainability Report 93 Respect the principle of “equal pay for equal work of equal value”, such as for men and women. Signatory to the Global Compact since 2002, the Daimler Group is committed to building a more inclusive and sustainable global market. The Group goes beyond the manufacture of high tech products and the offer of excellent services, as it also promotes initiatives focused on the wellbeing of society. The Company is also a signatory to the Business Pact against the Sexual Exploitation of Children and Adolescents through the Na Mão Certa – Childhood Brazil Program, which aims to mobilize governments, businesses and nonprofit organizations to more effectively combat the sexual exploitation of children and adolescents along Brazil’s highways. Among the influences that Mercedes-Benz do Brasil has on the communities in which it operates is the provision of direct and indirect jobs throughout its value chain Social Performance and Stakeholder Relationships GRI 4.14 Social Responsibility Strategy In Brazil, the Social Responsibility strategy is supported by four pillars: Given that it is a large company, Mercedes-Benz do Brasil has many influences over the communities into which it is inserted. Among the most positive are the provision of direct jobs in its operations and indirect jobs along its value chain, generating income and wealth that contribute to the local economies and the growth of Brazil. The Company’s products are also focused on the mobility of goods and people, which is currently one of the country’s most important issues, particularly in its major cities, with respect to the ongoing growth of Brazil. Condemn all forms of forced and compulsory labor. Support the effective abolition of the exploitation of child labor. Take responsibility to ensure equal employment opportunities and reject discrimination in all of its forms, except when domestic legislation requires hiring based on specific criteria. Discrimination against employees based on gender, race, physical condition, origin, religion, age or sexual orientation is not acceptable. Arts and Culture Environment Its culture of social responsibility follows the same precepts as the Daimler Group around the world and is based on high ethical standards that are based on the ten principles of the Global Compact of the United Nations (UN), the largest multinational sustainability initiative in the world. Therefore, Mercedes-Benz do Brasil respects and supports internationally accepted human rights, in regard to which it assumes the following commitments: Social However, Mercedes-Benz understands that is role can go beyond, with investments in broader social development. In this context, the Company believes that business activities and social commitment go together. Mercedes-Benz do Brasil Social Responsibility Education and Sports Community Pillars This commitment is manifested through a variety of initiatives, such as donations, sponsorships (with Company resources and through tax incentives), the Company’s own social initiatives, support for recognized entities and the encouragement of volunteerism. The projects and actions primarily serve the communities located in the regions close to the Company’s facilities in São Bernardo do Campo (SP), Juiz de Fora (MG) e Campinas (SP). 2012/2013 Sustainability Report 95 Social Responsibility Committee In 2003, Mercedes-Benz do Brasil included in its commitment to society among its business goals and therefore created the Social Responsibility Committee. Made up of a multifunctional group of executives who meet on a monthly basis, the Committee analyzes all of the corporate activities that involve the community and its development, while also seeking to strengthen the Company’s image. The group defines initiatives based on a global outlook and an understanding of the business segments of Mercedes-Benz do Brasil. The achievements resulting from the Committee’s meetings in 2012 and 2013 were: Initiatives GRI SO1 CCBC The Company supports the Vila Pauliceia Community Charity and Cultural Center (CCBC), a social entity that has a recycling center and offers a range of social activities to the surrounding community, through regular donations of aluminum, glass, bond paper, long life packages, magazines and newspapers for recycling, as well as various donations by employees, in order to support the bazaar that makes the CCBC self-sustaining. In addition, in 2011 Mercedes-Benz trainees prepared a Business Plan to improve the management of the entity. Planet Mercedes-Benz – Our Sustainable World In celebration of World Environment Day, the Company presented at its unit in São Bernardo do Campo in 2011 and in Juiz de Fora in 2012, the children’s play “Planet Mercedes-Benz – Our Sustainable World” to highlight the importance of living in harmony with nature. Since the first performance, 9,000 children, including 100 young people from the Jequitibá and Pequenos Jardineiros social projects, have watched the play. The Company also held an exclusive performance for the children of its employees. Cultural and Educational Symphonic Orchestra of the State of São Paulo (OSESP) To facilitate access to culture, Mercedes-Benz provides training to lowincome students and concerts for employees and customers, among others. In 2012 alone, more than 140,000 people were able to attend performances by OSESP, which is considered to be the best orchestra in Latin America. “German Orchestral Music” Project – Tatuí Conservatory This orchestra, which is made up of young people from Tatuí, is another of the Company’s educational projects, which seeks to provide the population with access to classical music. Free performances were given in 2012 at the SESCs in Aricanduva and Guarulhos. Orchestra of São Bernardo do Campo Mercedes-Benz strengthens its image with the community in São Bernardo do Campo through classical music performances with the city’s orchestra, through the Roaunet Law. In 2012 and 2013, approximately 4,000 people attended three concerts. Mozarteum Brasileiro – German Orchestras In commemoration of the Germany + Brazil year, in 2013, Mercedes-Benz held a series of classical music concerts at Mozarteum Brasileiro, which brought German orchestras to perform in Brazil. Photography Contest Also in celebration of the Germany + Brazil year, the Company in 2013 recognized five winners of the best photographs in Brazil representing Germany. In total, there were 1,815 participants and 3,795 photos registered, and the winners received a trip to Germany, as well as the display of their photos in São Paulo. Zumbi dos Palmares In the area of education, Mercedes-Benz expanded its partnership with Faculdade Zumbi dos Palmares and allocated ten internships for students from that educational institution. In addition, since 2010 the Company has sponsored the Troféu Raça Negra (Black Race Trophy), in partnership with AfroBras Sociedade Afrobrasileira de Desenvolvimento Sociocultural and Faculdade Zumbi dos Palmares, which created the award. Choral Project In an effort to encourage artistic and cultural activities, Mercedes-Benz is reinforcing its commitment through its support for “Projeto Canto Coral” (Choral Project). The classes are one year in duration and are taught by the experienced conductor Murí Costa. When the program ends, the group of 30 children records a CD featuring Danilo Caymmi as curator. Little Gardeners To help young people find their first job, the Company offers, through the Little Gardeners Project, gardening classes to 26 young people between the ages of 15 and 17 in the city of Juiz de Fora. The initiative is part of a group of programs focused on the inclusion of adolescents from unfavorable socioeconomic situations. 2012/2013 Sustainability Report 97 Dorina Nowill Since 2014, Mercedes-Benz has supported Dorina Nowill Foundation, which promotes rehabilitation, special education and social inclusion for blind people. The project, which serves people ages 0 to 17, allowed for the production of 130 audiobooks, including best sellers and textbooks. Caminhos de Caminhoneiro In an effort to democratize culture and effectively combat the sexual exploitation of children and adolescents along Brazil’s highways, in 2012 Mercedes-Benz brought the show “Caminhos de Caminhoneiro” to Cubatão, in partnership with the Na Mão Certa Program, an initiative of Childhood Brazil. The project, which is part of the Company’s Social Responsibility strategy, reached 1,406 truck drivers. Individual Initiatives Modernization of the Training Center Expansion and creation of new rooms at the Mercedes-Benz Training Center to offer more courses, readings and training programs, targeted at the community surrounding the Company, apprentices, employees and their family members. Machinery and equipment modernization for SENAI Purchase of machinery and equipment for SENAI Mercedes-Benz in order to improve the educational structure, benefiting students, employees and future apprentices. Inside Mercedes-Benz - Visits Based on the principle that education is a part of the Company’s pillars of Corporate Social Responsibility, Mercedes-Benz do Brasil offers university and technical school students the opportunity to find out more about the technology and technical rigor applied to the production of Mercedes-Benz do Brasil’s commercial vehicles. Held annually, the Inside Mercedes-Benz program received 589 visitors from 27 entities in 2013. Sports Sports and Citizenship School Project As part of its Social Responsibility strategy, since 2012 Mercedes-Benz has offered 1,000 openings in free classes in 12 different sports to employees and people from the community of São Bernardo do Campo and Diadema. Mercedes-Benz Run and Fun Walk Held annual since 2011, the 2013 Mercedes-Benz Run and Fun Walk had 3,000 participants in the three different events offers (5k walk, 5k run and 10k run). Held at the Company’s facilities in São Bernardo do Campo and Juiz de Fora, the event is open to employees, the communities of both cities and JDF ranking athletes. Renovation of the Vila Pauliceia Recycling Center Renovation of the center’s recycling warehouse, which services the surrounding community of the São Bernardo do Campo unit, in order to increase its storage capacity and improve safety conditions. Mercedes-Benz do Brasil has maintained a Social Responsibility Committee since 2003 Support Dorina Nowill Foundation for the Blind With the support of Mercedes-Benz do Brasil, children and adolescents take part in the Special Education Program, in which they carry out activities focused on an autonomous, social life, receiving guidance with respect to mobility, as well as educational support, while also having access to audiobooks and books in braille. Vila Pauliceia Community Charity and Cultural Center This social entity, located a few kilometers from the Company’s São Paulo unit, has a recycling center and a variety of activities offered to the surrounding low-income community. The Center receives support through regular donations of aluminum, glass, bond paper, long life packages, magazines and newspapers for recycling, as well as a variety of donations from employees to a bazaar that allows the Center to be self-sustaining. In 2011, trainees from the Company developed a Business Plan to improve management of the entity. In addition, there were initiatives such as an internal campaign to collect donations and the donation of a pick-up truck, which increased the entity’s mobility and improved its logistics. 2012/2013 Sustainability Report 99 Mercedes-Benz, the brand responsible for the world’s first automobile and its first truck, is synonymous with ongoing innovation in mobility and it was chosen to be honored by the Rosas de Ouro Samba School at the 2013 Carnival celebrations Sponsorships Rosas de Ouro Sponsorship Mercedes-Benz, the brand responsible for the world’s first automobile and its first truck, is synonymous with ongoing innovation in mobility and it was chosen to be honored by the Rosas de Ouro Samba School at the 2013 Carnival celebrations in the city of São Paulo. With the theme “The Drivers of Joy: A Fantastic Journey into the Realms of Carnival”, the school demonstrated the richness of popular festivals around the world at the São Paulo Sambadrome, in keeping with the central theme of the São Paulo Carnival, which sought to honor these expressions of culture and tradition among different peoples. Rosas de Ouro’s theme touched on a variety of popular celebrations, from Chinese New Year, to the Zulu Warriors Festival in South Africa, to St. Patrick’s Day in Ireland, to the Day of the Dead in Mexico, to Brazil, where they highlighted Carnival and the Parintins Festival, in Amazonas state, among other festivals. Rosas de Ouro was the runner up in that edition of the São Paulo Carnival. The successful partnership with the samba school was renewed for the 2014 Carnival, involving the participation of approximately 200 Mercedes-Benz employees and partners, who paraded under the artistic direction of Jorge Freitas. Mercedes-Benz supplied trucks that were used to transport the floats that were used in the parade, traveling between the school and the Anhembi Sambadrome. For the technical rehearsals, which is a common practice among the samba schools, Mercedes-Benz trucks represented the floats, marking space, progress and other items. The theme for 2014 was “Unforgettable”, which brought the most meaningful moments in a person’s life to the Anhembi Sambadrome. 2012/2013 Sustainability Report 101 Other Sponsorships 2012 Brazilian Tour of the Deutsches Symphonie-Orchester Berlin (DSO): The renowned Symphonic Orchestra of Berlin, the Deutsches Symphonie-Orchester Berlin (DSO) performed in Brazil, in May of this year, in a tour that consisted of four performances in the city of São Paulo. The concerts, conducted by Vladimir Ashkenazy, were held at Ibirapuera Park and included a special educational concert for children and an open-air concert, both free of charge. The other performances took place at the Municipal Theater. On Mother’s Day, the DSO performed in the park with the participation of young musicians from the Youth Orchestra of the State of São Paulo. The German orchestra’s activities in Brazil also included a cultural contest featuring short films, with the theme of music on the road. The participants were to be inspired by Symphony no. 6, the “Pastoral” by Ludwig van Beethoven (1770-1827), to compose a video of up to two minutes, with the work as the soundtrack. The first place winner was awarded a trip to Berlin. MASP Mercedes-Benz Visual Arts Award: Award created by Mercedes-Benz do Brasil and the São Paulo Museum of Art (MASP), made possible through the Federal Law for the Promotion of Culture. In its first edition, the Award was considered one of the most important in the world, due to its jury of internationally recognized curators, its extremely attractive prizes and its nationwide reach. The jurors were Chris Dercon (director of London’s Tate Modern gallery), Teixeira Coelho (MASP Coordinator), José Roca (8th Mercosur Biennale and curator of Latin American art at the Tate Modern), Moacir dos Anjos (Itaú Cultural, 29th São Paulo Biennale, Panorama of Brazilian Art at MAMSP). The ‘MASP Mercedes-Benz Visual Arts Award’ selected winners in two categories: ‘Best Contemporary Artist of the Year’, which was awarded to Anna Maria Maiolino, and ‘Emerging Talent’, which was awarded to Paulo Nazareth. The artists were unanimously chosen and received grants of R$200,000 and R$70,000, respectively. The amount given for the main category is the highest ever given to a single artist in Brazil and is one of the largest worldwide in the area of visual arts. Mercedes-Benz do Brasil sponsored the roadshow for the 30th São Paulo Biennale – Work Selection, which was held in the city of Campinas 30th São Paulo Biennale: The Company supports the largest and most important art exhibition in Brazil. In its 30th edition, the Biennale received more than 349,000 visitors, with an educational program that served 17,775 students from public and private schools. Invisible Brazil: With 3,000 calendars and 1,000 books published, Mercedes-Benz sponsored the “Invisible Brazil” art book, by Valdemir Cunha, in partnership with Xavier Bartaburu, the pages of which feature images and stories from an unknown side of Brazil. AlfaSol – Professional Education: In partnership with AlfaSol, Mercedes-Benz sponsors the “Professional Education Project” through which 600 young people from Greater São Paulo who live in socially vulnerable situations have already received training. The initiative is open to young people between the ages of 14 and 18, from 14 different social institutions. The participants in the course are trained by educators specifically hired by the entity based on the educational materials developed by the Roberto Marinho Foundation. 2013 SAE Brasil Journalism Award: This award, sponsored by the SAE (Society of Automotive Engineers), seeks to recognize the best reporting on land, aerospace and naval mobility technology, published in Brazil in print and on the internet. Cash prizes are given to the top finishers in each category (print media and online), as well as cash prizes for two honorable mentions. The submissions are evaluated by a jury made up of two journalists who specialize in the automotive industry and one representative of SAE Brasil. Art Show in Campinas (SP): Mercedes-Benz do Brasil sponsored the roadshow for the 30th São Paulo Biennale – Work Selection, which was held in the city of Campinas. The local SESC unit received the exhibition, which was open to the public from April 19 to June 30, 2013. Entry was free of charge. 2012/2013 Sustainability Report 103 Employees GRI LA1 Workforce Profile Workforce Profile GRI EC7 Jubilee At the close of 2013, Mercedes-Benz do Brasil employed 13,776 direct employees, including Apprentices. This figure is approximately 4% lower than the workforce of 2012. The reduction is due to the restructuring that the Company is undergoing to increase its competitiveness and efficiency (find out more on page 60). For the same reason, turnover in 2013 was higher than in 2012, at 5.09% versus 2.30%. The Jubilee event is being held by Mercedes-Benz do Brasil in honor of its employees who have completed 25 and 40 years of career with the Company (considering all periods of service, even those that were noncontinuous, working with the Company or its affiliates). The initiative has already recognized more than 3,000 employees who have completed 25 years of service (598 in 2012 and 396 in 2013) or 40 years with the Company (11 in 2012 and 26 in 2013). The retirees receive a diploma, a brooch, attend a speech given by Philipp Schiemer, President of Mercedes-Benz do Brasil & Head of Latin America, receive the compliments of all of the members of the executive board and participate in a cocktail party with live music, specially prepared for them and their invited guests. As a means of providing opportunities to its employees and enhancing their value, Mercedes-Benz seeks to recruit internally. For the Executive Level (administrative positions), the Company has a policy, applicable to all of its business units, of filling the positions through the promotion of active employees. If there are no such candidates available, the Company may opt to hire from the local market – Brazil – or use a professional from one of its business units outside of Brazil. Currently, 67% of the highest executive positions – President, Vice Presidents and Executive Officers – are held by Brazilians. In keeping with the Company’s Principles of Social Responsibility, Mercedes-Benz seeks to protect the health of its employees, provide adequate compensation (that is not lower than the local minimum wage), ensure compliance with all legal requirements regarding working hours and regular holidays, as well as support the professional development of its employees, among other principles. CLTs 13,477 2013 299 2013 14,090 2012 241 2012 14,052 2011 238 2011 12,774 2010 253 2010 Apprentices The Jubilee event is being held by Mercedes-Benz do Brasil in honor of its employees who have completed 25 and 40 years of career with the Company 2012/2013 Sustainability Report 105 Total employees by job category 2013 Total employees by region/unit 10,157 Hourly employee (direct and indirect) 12,094 12,654 2013 2,871 2012 Salaried 449 970 918 São Bernardo do Campo Juiz de Fora Executive Level 2013 712 759 2012 2013 299 2012 Apprentices Campinas GRI LA2 Total employees by job category 2012 10,525 Hourly employee (direct and indirect) 3,093 Salaried Hired 2012 Dismissed Hired 2013 Dismissed Turnover* Turnover* Under 30 240 82 1.12% 337 195 1.93% 30 to 50 108 Over 50 1 127 0.82% 82 179 0.95% 100 0.35% 4 606 2.21% Age Range Gender Women 68 40 0.38% 87 101 0.7% Men 281 269 1.92% 336 879 4.4% Campinas 18 41 0.21% 67 120 0.68% 241 Juiz de Fora 96 60 0.54% 113 62 0.64% São Bernardo do Campo 235 208 1.55% 243 798 3.78% Apprentices Total 349 309 2.30% 423 980 5.09% 472 Executive Level Unit/Region Total Employees 14,331 13,776 * Amount calculated using the following formula: Turnover = Dismissals + New Hires / 2 / Total Workforce 2012/2013 Sustainability Report 107 Respect for diversity and non-discrimination are behaviors described in the Group’s Code of Ethics Diversity GRI LA13 LA14 The Daimler Groups seeks to promote the value of diversity among its employees, as it believes that environments in which there is a significant variety of cultures, religions, races and genders are more conducive to the emergence of new ideas, products, processes and unique ways of thinking. For this reason, it created a policy for addressing this issue with employees. The document deals with issues related to the concepts of plurality, multiplicity and different points of view, which must be respected at the individual and collective levels. It also shows that the ideal is to have mixed groups in all departments, in all units. The issue is included on the agenda of the regular meetings of the Company’s leadership and its internal communications channels (the Em Foco newspaper and Nós magazine), which, since 2010, have featured exclusive spaces for addressing it. Respect for diversity and non-discrimination are behaviors described in the Group’s Code of Ethics, which states that “Daimler assumes responsibility for ensuring equal opportunities in relation to employment and to reject discrimination against employees based on gender, race, physical condition, origin, religion, age or sexual orientation, except if the country’s legislation explicitly provides for a type of hiring based on specific criteria.” Ratio of base salary and compensation between women and men, by employee category (R$) 2012 Mercedes-Benz do Brasil’s diversity indicators are shown in the charts and table below. Administrative (salaried) 2013 Women Men Women Men 7,136.3 8,808.0 7,696.9 9,626.2 Apprentices 678.9 721.8 925.9 937.5 Executives 18,286.4 15,891.8 16,541.6 16,951.0 Operational (direct and indirect hourly employees) 3,671.2 4,544.9 4,393.3 5,292.5 Employee total by age range Employee total by gender 8,604 8,729 2,595 2,842 Under 30 2013 12,572 13,113 2012 2,577 2,760 2013 2012 2013 2012 2013 2012 1,204 1,218 30 to 50 Over 50 Men 2013 2012 Women 2012/2013 Sustainability Report 109 Internal Training Portfolio Open Programs Administrative Time Management with Outlook, Negotiation, Business Vision and Strategic Thinking. Behavioral Public Speaking – Communication, Argumentation and Logic; Creativity; Feedback – The Art of Relating with Others; Emotional Intelligence and Conflict Management; Safety Awareness. IT Access, Excel, Outlook, PowerPoint, Project, Word. Technical Basic SPC; Quality Tools; Design Reading and Interpretation; Metrology; Workplace Safety. Administrative Cost Analysis and Price Formation; Basic and Intermediate Accounting; Economics; Statistics Applied to Business; Business Ethics; Corporate Finance; Financial Project Management; Process Mapping; Financial Markets; Strategic Thinking and Planning; Solving Administrative Problems; Transforming Technical Language into Management; Taxation. Behavioral Training Facilitators; How to Make Presentations in English. IT Catia (Basic, Production, Drafting, Hybrid, Sheetmetal, Smaragd, Tubing), EDS, PDS. Technical Critical Analysis of Calibration Certification; Preliminary Risk Analysis; Transmissions – Operating Principles and Assembly; Advanced Statistical Process Control (SPC); Computer Numerical Control (CNC); Vehicular Electricity; Hand Tools and Fasteners; Service Fundamentals; Hydraulics; Diesel Motors (Series 450, 600 and 900); NR 10 – Occupational Health and Safety with Electrical Installations; NR 33 – Occupational Health and Safety in Confined Spaces; Industrial Vehicle Operator (Stamper, Dump Truck, Hoist, Pallet Truck, Forklift, Tow Truck, Tractor); Guidance for the Application of the 5Ss; Cleaner Production Program; Pneumatics; Technical Reports – Structure and Preparation; Safety for Operators of Rolling Bridges with or without cabins; Cargo Lifting and Handling Operator Safety; Fire Prevention and Control; Welding; Total Preventive Maintenance; Heat Treatment. Administrative Lean Thinking (Lean concepts) Behavioral Emotional Intelligence and Coflict Management; Negotiation; Development Program for Potential Salaried Employees; Business Vision and Strategic Thinking. Corporate Spokesperson Improvement; Communication through Sign Language; Integration (general and for managers with employees with disabilities); MB Plus Program; Fact and Fiction regarding the Inclusion of People with Disabilities; Group Work. Languages Foreign Languages (English, German, Spanish); Portuguese for Foreign Expats. Management and Leadership Communication, Interpersonal Relationships and Feedback; Daimler Seminar For Managers; Leading Teams; Masters in Action; Master Training Program; Reflections for Dialogue. Technical Specialization (Prototype Adjuster, Tooling, Electronics, Mechanical Maintenance), Continuing Education in Operational Health and Safety; Safety Management and Loss Control; Operational Health and Safety Management and Complementary Procedures (for safety facilitators, supervisors, masters and planners). Truck Operating System (TOS) Continuous Flow; Lean Logistics for Internal Supply; Value Stream Mapping (VSM); Standardized Work. Programs on Demand Development GRI LA10 LA11 Mercedes-Benz do Brasil understands that professional development is essential for employees to be able to execute their strategic objectives, which is why is offers a series of training programs in various areas of expertise, and invests in training its employees. In 2012 and 203, the average hours of training per professional totaled 31.57 and 5.51, respectively. The 2012 volume is significantly higher than 2013 due to the implementation of technical specialization courses in SENAI for approximately 1,400 employees in the production area. Even though there is a reference amount of hours of training per employee to be performed annually, the ideal is that specific needs be met based on the positions of leadership regarding their teams. The training initiatives are made up of ten modules: Study Stimulus Plan; Language Development Plan; Internal Course Portfolio; External Courses; Workshops; Career Support Programs; Management Development; Lectures; Partnerships with Educational Institutions; Internal Program Development. Corporate / Specific Programs 2012/2013 Sustainability Report 111 Management Skills MBPlus GRI LA11 The Company offers internal MBPlus training to retired employees or those approaching retirement who wish to prepare for their post-career period. The content leads the participants to reflect on the transition to this new phase, providing information and general guidance about the risks and opportunities during this period, entrepreneurship, personal finance, healthy physical activities and interpersonal relationships. The idea is to contribute to a quest for economic and social stability with a high quality of life upon leaving the Company. The development of Mercedes-Benz do Brasil’s executives is also focused upon by the Human Resources area, which offers the Management Development Plan, composed of programs aligned with the Company’s values and created to develop the skills that will allow managers to reach high performance levels. The programs offered by the Management Development Plan are directly associated with eight high performance criteria (HPCs) that are based on pillars related to the Company’s values. As such, seven development programs were established, which are described below. Program Content Leaders in transition Labor legislation, personnel management, compliance and coaching Daimler Seminar for Managers (DSM) Role of leadership, change management, resistance, team development planning, DISC – profile (tool for evaluating the behavioral tendencies of leaders), contextualized leadership Leadership in Practice (LIP) (under development) Leading Yourself Balance between personal and professional life, how to manage stress, healthy attitudes, overcoming obstacles and emotional intelligence Leading Teams Leadership evolution, comprehensive leadership, team development, DISC – profile (tool for evaluating the behavioral tendencies of leaders), effective communications, conflict management, building trust Leadership and Performance The Company offers internal MBPlus training to retired employees or those approaching retirement who wish to prepare for their post-career period Effective communications, relationships, conflicts, generations X and Y, commitment Potential Program Personal and professional challenges related to the future position, behavior models and strategies for success, development fields, effective management tools, network expansion and development plan MBA Courses taught by Fundação Getulio Vargas (FGV). Automotive Business Management and Business Management 2012/2013 Sustainability Report 113 Health, Safety and Quality of Life GRI LA6 LA8 Health and safety are constant concerns in industry and, consequently, at Mercedes-Benz do Brasil. The dissemination of the Company’s best practices in this regard, applicable to all levels of the hierarchy, is ensured by committees that operate at each of the units. There is a specific procedure for the structuring of these committees, inserted into the Integrated Management System, which attests to the importance of this issue for Mercedes-Benz. They are made up of representatives of management and of the employees. In 2012 and 2013, more than 75% of the workforce was represented by these bodies. Health Promotion and Disease Prevention Program - MBSAÚDE The committees are set up in the following manner: Central Committee for Occupational Health and Safety Main committee, with representatives from the different executive board of the three units in Brazil. Factory Committee Main committee for the factory units, composed of managers, workplace safety specialists and factory representatives. Senior Management Committee Committee covering the productive areas, composed of senior managers, managers, employees of the Specialized Services in Safety Engineering and Occupational Medicine (SESMT) and representatives of the factories, as indicated by the body itself. Area Safety Committee Committee composed of the Manager and Production Supervisor and a spokesperson for the factory employees. Smoking Cessation Program The committees meet on a monthly basis to monitor the occupational health and safety indicators, discuss and evaluate matters pertaining to these issues and to the environment, analyze accident trends and risks, and plan and evaluate inspections, among other initiatives. The goal is to ensure compliance with the related targets. At the same time, Mercedes-Benz do Brasil also promotes programs focused on the control and prevention of health problems, described below: MBSAÚDE is structured to provide regular and periodic medical and nutritional monitoring to employees with chronic diseases such as hypertension, diabetes, dyslipidemia and obesity, among others. The program also focuses on prevention, through campaigns, guidance initiatives and health education. Implemented in 2009, this program follows a protocol for providing medical monitoring for individuals and groups of people who want or need to quit smoking. It also includes educational initiatives about this habit and about the benefits of abstaining from tobacco use. It is estimated that two-thirds of participants stop smoking. Mercedes-Benz do Brasil understands that professional development is essential for employees to be able to execute their strategic objectives Drug Dependence Prevention and Treatment Program (TECA) Program conducted by Mercedes-Benz for the last 20 years, focused on prevention and supporting employees who suffer with this problem, particularly alcoholism. Through guidance initiatives for employees and managers, efforts are made to show the seriousness of the problem and the need for treatment. The risk of accidents when working intoxicated is also highlighted. Back Program This program seeks to help people with chronic back pain caused by degenerative changes, which affect their functionality. It seeks to restore and maintain wellness through specialized treatment and targeted exercises, conducted over the course of a year, in five phases. It provides significant improvements to chronic pain, flexibility and mobility, resulting in a better quality of life. Benefits GRI LA3 Mercedes-Benz do Brasil seeks to promote better working conditions, quality of life and motivation among its employees through a series of initiatives related to the management of people, which, among various measures, include attractive and competitive benefits, aligned with the values of the Daimler Group. Below are details of the benefits offered to the Company’s employees. Food:The food service offered to all employees at Mercedes-Benz’s restaurants includes a technical and administrative team, an experimental kitchen, a nutritionist and a laboratory for food analysis, which ensures its quality in accordance with nutritional quality standards. 2012/2013 Sustainability Report 115 Medical Clinic: Located within the Company’s facilities to provide clinical and specialized care, as well as the provision of complementary services. The available specializations are: general medicine, cardiology, dermatology, gastroenterology, infectious diseases, proctology, gynecology, ENT, ophthalmology, orthopedics, pulmonology and endocrinology. The services include: nursing, physical therapy, complementary exams (audiometry, ECGs, X-rays and ultrasounds), the collection of material for clinical tests, dental care (emergency and prophylaxis), flu vaccine programs/campaigns, drug addiction and morbid obesity, among others. Benefits Established through Collective Bargaining/Agreements: Illness supplement for employees on leave for more than 15 days due to an illness or accident, End of year bonus for employees on sick leave, additional holiday pay and retirement benefit. Vehicle Purchase Discount: Concession of a discount for domestic and imported vehicle and light commercial vehicles (Sprinters) for employees hired indefinitely and in-house for at least 180 days. Limit of one unit per year, regardless of the model, from the purchase date. Mercedes-Benz do Brasil seeks to promote better working conditions, quality of life and motivation among its employees through a series of initiatives related to the management of people, which include attractive and competitive benefits Education: In addition to the training centers installed at the three units, there are a variety of initiatives aimed at employee development, such as: partial grant for the first year of an undergraduate or graduate degree in areas compatible with the position held, partial subsidy of language courses (English, German and Spanish) beginning at the intermediate level, scholarships, Stimulus Plan for Studies and Professional Development, Industrial Training Course and other initiatives. Pension Plans: With characteristics similar to a programmed savings account, MBPrev allows the money deposited by participating employees and the companies that sponsor the plan (Mercedes-Benz and its affiliates) to be invested and earn interest until it is returned in the form of a benefit. The entire amount deposited remains invested in a fund with fixed income and equity investments and will be retained until the participant becomes eligible to receive benefits. These are open to all employees with fixed term and indefinite contracts that are not subject to suspension. Programs to Combat Alcoholism and Other Addictions: Care and counseling in cases of chemical dependence through specific programs and support groups such as the Therapy and Anti-Addiction Group (TECA) and the Family Group, open to the family members of addicts. Insurance, Funeral Assistance and Compensation: In addition to compulsory life insurance (mandatory for all employees), the Company offers other options such as complementary life insurance, work-related travel insurance (international) and personal accident insurance (related to travel or the position held). In the event of an employee’s death, guidance is provided to family members and, if requested, a funeral service is contracted. There is also compensation for the death of an employees, provided to their legal dependents, as well as for disability. Services and Benefits: Discounts on airfare and excursions, car rental in Brazil and abroad, and agreements with agents to obtain Brazilian passports and visas to different countries. Social Services: Benefits of a social nature, in general, seek a balance between people’s personal and professional lives. They cover, for example, emergency financial advances in specific cases, special authorization for visits to hospitalized family members (if the visiting hours coincide with the employee’s scheduled working hours), transportation for moving in Greater São Paulo, justification of absences in the Time Bank Debit for special cases, among others. There is also a marriage holiday allowance (three working days or five calendar days from the date of the wedding or the following day) and daycare assistance for employees with small children. Employees’ children under 12 years of age receive Christmas presents. The Company also offers factory visits to all interested employees and their family members. Chartered Transport: Transportation is offered to all employees, with an average Company subsidy of 81%. There are a total of approximately 325 vehicles used in the Company’s three units, providing comfortable, safe and rapid transportation to and from work. In São Bernardo do Campo (SP), five bus companies exclusively serve the factory, with a total of 160 vehicles. At the unit in Juiz de Fora (MG), a tour company provides the service with 20 buses. In Campinas (SP), four companies and 28 vehicles handle the daily transportation needs. Composed solely of Mercedes-Benz vehicles, the fleet has approximately 760 lines, which serve passengers in 16 different cities. Leisure: Through the Mercedes-Benz Employee Sports Association (ADCMB), Mercedes-Benz do Brasil promotes socio-cultural and sports activities at two different venues, with indoor sports (indoor soccer, volleyball and basketball) and swimming, martial arts, ballroom and country music dancing, gymnastics, track & field and other sports. In addition, the Company provides discounted tickets to theme parts, as well as other services and benefits. To promote integration, there are special events that include trips, shows, dinners and theme parties. Occupational Medicine: Professionals work to improve working conditions and conduct measurements, such as: ergonomic suitability of specific jobs, chemical controls (toxicology tests), noise monitoring, occupational physiotherapy, periodic health check-ups and other activities. Health Plans: Different healthcare plan options are available. There is a standard plan for all employees, and a differentiated plan for those who have been hired with indefinite contracts. At the Medical Clinic, there are healthcare plan representatives available to provide information, guide and assist users in the utilization of these plans, approve visits and provide other services. 2012/2013 Sustainability Report 117 Labor Relations GRI 4.4 LA4 The Daimler Group recognizes the human right to unionize and it respects collective bargaining rights. This is a very important stance, particularly in Brazil, which has historically had strong union activity in the metallurgy sector. One hundred percent of hourly and salaried employees are covered by Collective Bargaining Agreements and Conventions, previously negotiated with representatives of the Metalworkers Union in the regions where the Company’s units are located (São Bernardo do Campo and Campinas - SP and Juiz de Fora - MG). Mercedes-Benz and its executives act with neutrality during the union campaigns and organizing activities. The Unions and the Company must ensure that employees are free to make their own decisions. Mutual cooperation between the parties can provide a fair balance between the commercial interests of the Company and those of its employees. Even in cases of disagreement, the objective must always be to find a solution that allows for constructive cooperation over the long term. Operating in one of the most dynamic sectors of the Brazilian economy, collective bargaining is very important for the companies of the Daimler Group and others in the same segment. Over the years, the Group has developed union and labor practices that are qualitatively differentiated, in that the permanent openness to collective bargaining and the voluntary solution of conflicts have shown themselves to Ethics and Compliance be highly effective at strengthening the relationship between the Company and its employees, based on ethical principles. Since 1985, Mercedes-Benz and the ABC Metalworkers Union have maintained the Company Union Committee (CSE, formerly known as the Factory Commission) in São Bernardo do Campo (SP) to represent hourly and salaried employees in collective bargaining and to support any individual demands. On a weekly basis, the CSE coordinators meet with some of the Production Officers and Human Resources representatives to discuss requests and advance the solutions that are in the interest of the Company and its employees. The Company and the Unions have 12 collective bargaining agreements in effect, as well as systematically preparing the Protocols of Understanding for the internal registry of decisions negotiated between the parties on a variety of issues that are in some way of interest to employees. The Daimler Group recognizes the human right to unionize and it respects collective bargaining rights Some of these Compliance initiatives are listed below: Due Diligence and Supplier Integrity Check: Verification of the integrity of business partners, such as dealers, assemblers and suppliers; Mandatory Consultation Process (MCP): Process related to the evaluation of high-value transactions or red flags involving the government and private customers; Internal Controls; Communications and Training; Integrity Dialogues; Compliance Standards for Dealers, such as the StarClass program module; Record of Events, Presents and Meals – LOG. GRI 4.8 At the Daimler Group, Compliance involves compliance with all of the laws applicable to the business, as well as compliance with all of the Company’s procedures and policies. For the global Chairman of the Daimler Group, Dr. Dieter Zetsche, “at Daimler, Compliance is not optional. It is an integral and permanent part of our corporate culture.” To ensure compliance at all levels of the organization, initiatives have been established to promote and ensure ethical conduct that protects the Company and its employees from potentially risky decisions and prevents misconduct. As such, the Compliance initiatives, aligned with the values cultivated by the Company (Passion, Respect, Integrity and Discipline), provide transparency to the business and mitigate the risk of potential conflicts of interest and the risks of corruption when dealing with routine situations. In addition to the Compliance initiatives, Daimler has provided all employees with the new Integrity Code that seeks to defend human rights and ensure compliance with the law, social responsibility, fair treatment among employees, and the ethical treatment of Daimler’s business partners. The document covers issues such as the commitment to fair competition, the prohibition of corruption in business and the mitigation of conflicts of interest. On the internet, it is possible to download the Integrity Code and contact the BPO using the link www.mercedes-benz.com.br/ institucional/empresa/codigo-de-etica. At the Employees Portal, on the intranet, there is a space where it is possible to obtain information about topics related to Compliance. Both on the homepage of the Employee Portal and on the MBBras Compliance page, it is possible to report a potential violation of the Integrity Code and the internal policies and directives. The BPO is a corporate channel that allows all employees to report workplace irregularities, in Portuguese. The information is treated confidentially and, if desired, can be anonymous. In the case of knowledge of misconduct, reports can be made to superiors, the HR Department, Compliance or to the BPO. BPO Channel to report potential violations How to report a potential violation: Phone: 0800 89 12305 Email: BPO@daimler.com Daimler AG Business Practices Office (BPO) HPC: 0655 70546 Stuttgart 2012/2013 Sustainability Report 119 Customers Compliance-Related Training GRI HR3 SO3 Mercedes Space Daimler AG, together with Mercedes-Benz do Brasil, offers online and classroom training for the Company’s employees. In 2013, the Compliance area provided classroom training, such as Registry of Events and Presents – LOG; Donations and Sponsorship; General Compliance and Supplier-Related Compliance; MCP and Due Diligence Processes; Compliance for Leaders in Transition, as well as Integrity Dialogues. Daimler AG has provided online training in the Integrity Code, known as “Integrity@Work”, to all employees in the administrative area who have access to the corporate email system. Approximately one thousand employees took part in the classroom training provided by the Compliance area. A total of 2,778 employees participated in Integrity@Work, which represented 87.3% of the target audience. With the new Integrity Code, the managers of Mercedes-Benz do Brasil now have greater autonomy in their daily business decisions. However, when in doubt, the Compliance area is always available to assist them in relation to potential conflicts of interest with partners or with the issue of bribery. To contact the Compliance area with any issues: MBBras Compliance Daimler Latina Compliance Sebastião Brandão – Compliance Manager Extension: 4173-9135 Renata F. Lopes – Compliance Analyst Extension: 4173-6371 Fabio A. Laxy – Compliance Manager Extension: 4173-9524 Jairo Tcherniakovsly – Compliance Analyst Extension: 4173-7108 E-mail: Compliance MBBras, Pool-ID Internal Communications Mercedes-Benz believes that keeping its stakeholders informed is a fundamental part of its communications process, therefore it holds events and has publication directed especially at its suppliers, customers and the press. In addition to this external work, the team is also always attentive to the workforce, by reporting on the activities and achievements of its employees and subsequently publishing them. And, in 2013, the area received a news means of internal communications, the letter from the President. Among the main challenges in the area in 2012 and 2013, highlights included the reopening of the Juiz de Fora factory, the announcement of the Iracemápolis automobile factory and the restructuring of the Board of Directors. Also during the last two years, the Internal Communications team was present at the São Paulo International Motor Show and the International Highway Cargo Transport Show, covering Mercedes-Benz’s participation at both events. Opened in 2010 at the unit in São Bernardo do Campo (SP), the Mercedes Space is an environment conducive to meetings, closing business deals, technical deliveries, product demonstrations and other activities that allow Mercedes-Benz do Brasil to more closely relate with its customers and partners. Designed to host a range of events, the space has meeting rooms, a mini-auditorium with room for up to 80 people and an area that can become an auditorium for 450 people, appropriate for cocktail parties and exhibitions. It has AV infrastructure with cutting-edge technology, such as a video wall and totems with touch screens, and it allows visitors to interact with the history of Mercedes-Benz, as well as virtual navigation through the entire line of products. The purpose is to delight our customers and continually improve customer service, which is a key feature of the brand. The initiative is spawned from the idea that, given the fierce competition in the market, business success may come from the attention that is provided to partners, which is a differential for Mercedes-Benz. The Mercedes Space also has a traveling format, mounted in different cities in the Brazilian South and Southeast, through which the Company reaches regions with less contact with the brand, as well as exhibiting launches and new features of its products and services. Customer Relations Center The Mercedes-Benz Customer Relations Center is available 24 hours a day to address the main questions from customers, supply information about products and manage the 24-hour Mercedes Assistance and Mercedes Service programs. Recognized as the best customer service program by Consumidor Moderno magazine, the Center can be accessed in a variety of ways: phone, mail, online chat, chat for disabled persons, email or registration. Other Customer Relations Channels Bus Club: A space designed for bus owners, with news and information about Mercedes-Benz buses and the brand’s technologies, as well as information and highlights from the market and the transportation industry in general. Truck Blog: Everything about Mercedes-Benz trucks and the cargo transport market, as well as other services provided by trucks. 2012/2013 Sustainability Report 121 Aware of the importance of the press in building and maintaining the Company’s image, Mercedes-Benz seeks to establish a strategic relationship with communications professionals, journalists and opinion leaders Suppliers GRI EC6 Approximately 80% of the purchases of Mercedes-Benz do Brasil are made from local suppliers, operating in Brazilian territory. The local acquisition of raw materials and inputs is an encouraged practice, which includes the granting of benefits through the Inovar-Auto Automotive Regime, a measure adopted by the Brazilian government to encourage investment in the domestic automobile industry. It also allows for the realization of operations under FINAME, with financing from the National Development Bank (BNDES) for the purchase of new domestic machines and equipment. It also helps in the process of obtaining a Certificate of Origin for Export, the set of protocols for the export of products. In addition to geographical location, the selection of suppliers by Mercedes-Benz do Brasil is also based on cost, quality (including the certificate of quality), logistics, technological innovation, environmental performance (including environmental certification), integrity, ethics and financial condition. The Company seeks to extend the best practices in sustainable management throughout its network of suppliers and partners, thereby creating a multiplying chain for the brand’s values. The standards and expectations in relation to suppliers with respect to human rights, labor conditions, environmental aspects and business ethics are described in the Sustainability Directive for Suppliers, based on the Corporate Principles of Social Responsibility, which, in turn, are guided by international standards such as the United Nations Global Compact (find out more on page 94). Another important instrument for multiplying values, practices and ecoefficiency is the Interaction Award, which had its 21st and 22nd editions held in 2012 and 2013, respectively. Through this award, Mercedes-Benz do Brasil recognizes the suppliers who have stood out the most over a year through their technological innovation and excellence in costs, quality, logistics, indirect materials and services. The Mercedes-Benz Environmental Responsibility Award plays the same role, seeking to motivate suppliers to adopt best environmental practices in their own business (see on page 76). Media Relations Professional Associations and Government Relations Aware of the importance of the press in building and maintaining the Company’s image, Mercedes-Benz seeks to establish a strategic relationship with communications professionals, journalists and opinion leaders. The Company’s interactions with these audiences involve actions related to the brand or to merchandising, as well as institutional initiatives and products. For example, journalists are invited to participate in events, including with the possibility of test driving the Company’s cars and touring the organization’s facilities, such as its production lines, the Technology Development Center and other areas. GRI SO5 Mercedes-Benz do Brasil also has a Corporate Communications area whose activities include a team dedicated to media relations. This team maintains open channels for requests from the media and operates with total transparency. To operate more closely with the government, Mercedes-Benz maintains an office in Brasília and another, for more regional issues, in São Bernardo do Campo. This is important not only for driving discussions regarding public policies, but also for facilitating the Company’s growth projects, such as the installation of a new factory in the city of Iracemápolis, which required conversations at the federal, state and municipal levels. Mercedes-Benz do Brasil participates in a number of professional associations, including the National Association of Automobile Manufacturers (ANFAVEA), in order to contribute to discussions regarding the automotive industry as a whole, including regulatory, tax and commercial issues, as well as public policies. The Company helps to determine the best ways for it and its peers to adapt to the constant improvements in commercial and passenger vehicles, be they aimed at mitigating environmental impacts, improving safety or other objectives. The Brazilian automobile industry is the fourth largest in the world and this type of participation is essential to influencing the formation of new rules, as well as to establishing the guidelines that allow for a more assertive allocation of the investments needed to adapt to public policies. Good channels for finding news about the Company are the Press Room on the institutional website (www.mercedes-benz.com.br/imprensa) and the Twitter profile (www.twitter.com/ mercedesBRpress). 2012/2013 Sustainability Report 123 3. Report Parameters Report Profile GRI 3.12 Response Statement from the most senior decisionmaker of the organization about the relevance of sustainability to the organization. Page 5 Required Page 5 Required 3.3 Reporting cycle Page 5 Required 3.4 Contact information Page 130 Required Page 6 3.5 Process for defining the contents of the report Page 5 Required 3.6 Boundary of the report Page 5 Required 3.7 Statement on any specific limitations on the scope or boundary of the report Page 5 Required 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities Page 5 Required 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement Page 5 Required 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report Page 5 Required Page 124 Required Classification 1. Strategy and Analysis 1.1 Period covered by the report Date of the most recent previous report Report Scope and Boundary GRI Index GRI Indicators 3.1 3.2 Required GRI Content Index 3.12 2. Organizational Profile Table identifying the location of the Standard Disclosures in the report 2.1 Name of the organization Page 11 Required 4. Governance, Commitment and Engagement 2.2 Primary brands, products and/or services Pages 11, 33, 35 Required 4.1 Governance structure Page 54 Required 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. Page 11 Required 4.2 Indicate whether the Chair of the highest governance body is also an executive officer The Chairman of Mercedes-Benz do Brasil is not an executive officer. Required 2.4 Location of the organization’s headquarters Pages 11, 130 Required 2.5 Number and names of the countries where the organization operates Page 11 Required 4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members This does not apply to Mercedes-Benz do Brasil. Required 2.6 Nature of ownership and legal form Page 5 Required 4.4 Required Page 11 Required Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body Page 118 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries) 2.8 Scale of the organization Page 11 Required 4.8 Page 118 Required 2.9 Significant changes during the reporting period regarding size, structure, or ownership Page 16 Required Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. 2.10 Awards received in the reporting period Page 24 Required 4.14 List of stakeholder groups engaged by the organization Pages 94 to 123 Required 2012/2013 Sustainability Report 125 4.15 Basis for identification and selection of stakeholders with whom to engage Mercedes-Benz do Brasil engages with stakeholders over which it has an impact and who can impact its business, always prioritizing those with which it has close, routine relationships. Aspect: Products and Services Required EN26 5. Management Approach and Performance Indicators EN28 Aspect: Market Presence EC7 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation Page 122 Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation Page 104 Page 83 Essential Page 93 Essential Aspect: Compliance Economic EC6 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation Essential Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations Labor practices and decent work Aspect: Employment Essential Environmental Aspect: Energy EN3 Direct energy consumption by primary energy source Page 88 Essential EN4 Indirect energy consumption by primary source Page 88 Essential EN5 Energy saved due to conservation and efficiency improvements Page 61 Additional Aspect: Water EN8 Total water withdrawal by source Page 87 Essential EN10 Percentage and total volume of water recycled and reused Page 87 Additional Aspect: Emissions, Effluents and Waste EN16 Total direct and indirect greenhouse gas emissions by weight Page 89 Essential EN17 Other relevant indirect greenhouse gas emissions by weight Page 89 Essential EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved Page 81 Additional EN22 Total weight of waste by type and disposal method Page 83 Essential LA1 Total workforce by employment type, employment contract, and region Pages 104 to 107 Essential LA2 Total number and rate of new employee hires and employee turnover by age group, gender and region Page 107 Essential LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations Page 115 Additional Aspect: Labor/Management Relations and Governance LA4 Percentage of employees covered by collective bargaining agreements Page 118 Essential LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements Mercedes-Benz do Brasil does not have specific rules related to operational changes. Essential LA6 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs Page 114 Additional Page 114 Essential Page 110 Essential Aspect: Occupational Health and Safety LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. Aspect: Training and Education LA10 Average hours of training per year per employee by employee category 2012/2013 Sustainability Report 127 LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings Pages 110, 112 Additional Aspect: Diversity and Equal Opportunity Society Aspect: Community SO1 LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity Page 108 Essential LA14 Ratio of basic salary of men to women by employee category Page 108 Essential Human rights HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained Page 120 Page 96 Essential Essential Aspect: Corruption SO2 Percentage and total number of business units analyzed for risks related to corruption All of the units of Mercedes-Benz do Brasil have undergone Integrated Compliance Risk Assessment (ICRA). The evaluation may occur annually or every three years, depending on the business model. SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures Page 120 Essential Page 123 Essential Aspect: Investment and Procurement Practices Mercedes-Benz do Brasil currently does business with approximately 1,200 suppliers. Some of them are considered potentially high risk, either due to their geographic location or supply type. In such cases, there are specific vendor analysis practices through which the Sustainability Questionnaire is applied, to be answered by the supplier, which also includes questions related to human rights. The evaluation of the supplier is taken into account when entering into contracts. Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting Aspect: Public Policy Essential Additional SO5 Public policy positions and participation in public policy development and lobbying 2012/2013 Sustainability Report 129 Credits and Contacts Mercedes-Benz do Brasil Ltda. www.mercedes-benz.com.br Campinas Unit www.mercedes-benz.com.br Customer Service: 0800-970-90-90 Twitter: www.twitter.com/mercedesBRpress Av. Mercedes Benz, 679, Distrito Industrial. Campinas, SP. CEP 13054-750 Phone: (19) 3725-3333 | Fax: (19) 3725-3660 GRI 2.4 Administrative Headquarters and Factory Juiz de Fora Unit Av. Alfred Jurzykowski, 562, Vila Pauliceia São Bernardo do Campo, SP - CEP 09680-900 Phone: (11) 4173-6611 | Fax: (11) 4173-7667 Mail: Caixa Postal 202 | São Bernardo do Campo, SP - CEP 09701-970 Rodovia BR 040, km 773, Distrito Industrial II. Juiz de Fora, MG. CEP 36088-410 Phone: (32) 3219-0000 | Fax: (32) 3219-2603 GRI 3.4 General Coordination of the Report Consulting, Content and Editing Mercedes-Benz do Brasil Ltda. Carolina Cassiano - MBBras Environmental Management Vivian Malandrin - MBBras Corporate Communications Contact: pool-id.comunicacao@daimler.com MZ Group Graphic Design and Layout MZ Group Photos Mercedes-Benz and Shutterstock