Brazilian Business Cases on GHG Emissions Management and Reduction

Brazilian Business Cases on GHG Emissions Management and Reduction

Fundação Getulio Vargas, 2011. All rights reserved. 2

This publication presents successful practices reported by companies from the Businesses for Climate Platform (Empresas Pelo Clima, EPC) and the Brazil GHG Protocol Program, both initiatives from the Center for Sustainability Studies (GVces) of the Business Administration School of Fundação Getulio Vargas (FGV‐EAESP) that engage organizations on GHG emissions reporting and management towards a low carbon economy in Brazil.

Brazil GHG Protocol Program ‐ www.fgv.br/ces/ghg

Brazil GHG Protocol Program aims to stimulate a corporate culture of inventory of GHG emissions in Brazil, providing participants with tools and access to international quality standards for accounting of emissions and publishing of inventories.

Developed in the U.S. in 1998 by the World Resources Institute (WRI), the GHG Protocol is now the most widely used method worldwide for inventory of greenhouse gas (GHG) emissions. In 2008, the methodology was adapted to the national context by GVces and WRI in collaboration with the Brazilian Ministry of Environment, the Brazilian Business Council for Sustainable Development (CEBDS), World Business Council for Sustainable Development (WBCSD) and 27 founding companies.

In 2011, 77 companies reported their GHG emissions through the Brazil GHG Protocol Program methodology and their inventories were published in the Brazil Program’s Emissions Public Registry.

Businesses for Climate Platform (EPC) ‐ www.fgv.br/ces/epc

EPC is a permanent business platform that aims to mobilize, promote awareness and articulate business leaders for GHG emissions management and reduction practices, climate risks management and proposition of public policies in Brazil related to climate change.

Launched in October 2009 in partnership with The Prince of Wales Corporate Leaders Group (CLG) with the participation of 27 founding companies, EPC focuses on the next steps of the transition to a low carbon economy: managing and reducing GHG emissions.

In 2011, 39 member companies actively participate in the activities and working groups organized by the Platform.

Center for Sustainability Studies (GVces) ‐ www.fgv.br/ces

GVces was created in 2003. It is a São Paulo Business School (FGV‐EAESP) initiative that works for the development of sustainable strategies, policies and management tools, both public and private, in the local, national, and international realms.


Brazilian Business Cases:

4

Braskem reduces its impact from the production of

plastic from 100% renewable raw material

5 Braskem invests in renewable raw materials and innovative

technologies for reducing its emission of greenhouse effect

gases

6 BRF’s Energy Excellence Program

7 Avoided emissions from CNEC WorleyParsons equal 25% of

their total emissions

8 Ecofrotas promotes the convergence between the

economic and ecological in the management of fleets

and their emissions

9 Gelnex bets on the culture of emission inventories to

contribute to a low carbon economy

10 Itaú Unibanco incorporates more efficient and

sustainable processes into the bank’s operations with

the IT Green program

11 Odebrecht performs an inventory of engineering and

construction operations in 14 countries in three continents

12 Petrobras' thermoelectric cogeneration avoid

emissions of approximately 453,000 tons of CO2

equivalent per year

14 Santander promotes replanting and contributes to combat

climate change

15 Suzano has became pioneer in calculating the carbon

footprint of its products

16 The calculation and management of greenhouse gas emissions

is a reaffirmation of Ticket’s historic commitment to

environmental issues

17 Vale is committed to contributing to the development

of a low‐carbon economy

DISCLAIMER: The companies represented in this publication attest and are responsible for the veracity and accuracy of the reported

information. The Getulio Vargas Foundation disclaims any responsibility for the information provided by the companies. This publication of

business cases does not imply endorsement or approval of the companies’ practices by Fundação Getulio Vargas.


Braskem reduces its impact from the plastic production from 100% renewable raw material

In June, 2007, Braskem claimed the production, in pilot mode, of the first worldwide certified polyethylene developed from ethanol from sugar cane. The innovation focuses on using renewable raw material instead of oil derivatives and results in the reduction of the greenhouse effect by absorption of CO2 from the atmosphere in the sugar cane growth. Up to 2.5 tons of CO2 are sequestered and fixated by each produced metric ton of green polyethylene.

Green polyethylene is a thermoplastic resin produced from ethene obtained from ethanol from sugar cane. It has properties identical to the ones of the conventional polyethylene, which is one of the resins more used in flexible packs and other plastic products, with the advantage of being produced from a raw material coming from renewable sources. It can be used in machinery of transformations industries without any need for investments in modifications or adaptations. It is recyclable as every thermoplastic, but it is not biodegradable.

Braskem’s worldwide pioneering by launching a plastic from 100% renewable raw material is aligned to its innovation strategy and its commitment to search for sustainable development, corresponding to the expectation of Brazilian and international society for initiatives that concretely contribute for reduction of greenhouse gases. By then, the company has immediately attracted the attention of companies using polyethylene‐based products around the world, becoming a reference in the field due to the possibility of customers allying their brands to this commitment to sustainability.

Green polyethylene is a result from a research and development project that initially received about $ 5 million in investments, with a portion being destined to implantation of a pilot unit to produce ethene from renewable raw materials in the Centro de Tecnologia e Inovação Braskem (Braskem Technology and Innovation Center). This pilot unit produces 12 metric tons/year and enabled the commercial development of the product.

With the project release, Braskem has opened very positive perspectives for developing plastic products made from renewable raw materials, a field where Brazil has natural competitive advantages.

The project for manufacturing green ethene, raw material for polyethylene, was approved in 2007 and, in the next year, the building of the industrial unit in Triunfo (RS) was started. With investments in the level of R$ 500 million, the plant have capacity for producing 200 thousand metric tons/year, which will be transformed in an equal green polyethylene volume in the industrial plants already existing in Triunfo petrochemical pole.

Each metric ton of produced green polyethylene captures and fixates up to 2.5 metric tons of CO2 from the atmosphere, with this being the main gas causing greenhouse effect, according to the ecoefficiency analysis by Fundação Espaço Eco.

Thus, it collaborates to the reduction in the greenhouse effect, decreasing 500,000 tCO2 in the emission of this gas. When the carbon footprint of Braskem’s green polyethylene is compared to the one of petrochemical green polyethylene, the environmental advantage is even higher.

Therefore, since the claiming of its certification in 2007, green polyethylene has obtained several partners and customers in experimental scale, who contribute to show the biopolymer sustainability and efficacy.

Sector: Chemical and Petrochemical

Profit 2010 (EBITDA): R$ 4,1 Bi

Revenue 2010: R$ 34,7 Bi

Employees: 6,751


Braskem invests in renewable raw materials and innovative technologies for reducing its greenhouse gases emissions

Braskem understands its role as a private organization and searches for its positive contribution for the minimization of issues related to climate change. Seeing itself as part of the solution, the company focuses on the incremental and revolutionary improvement in operational and strategic management of the business, focusing on sustainable profit and making voluntary commitments without demagogy focusing on credibility.

An example of this was the definition by the change in Braskem’s MTBE units (methyl tertiary butyl ether), in Camaçari, in an ETBE (ethyl tertiary butyl ether) plant. The project started in 2006 and finished in 2009, raising gains from 2009 to 2010. The mentioned products are additive for European and American gasolines, improving their combustion and octane rating. Besides marketing appeals, ETBE also ensures improvement in the quality of atmospheric emissions, contributing for environmental preservation.

The world scene was already requiring this modification in MTBE units, following the elimination of MTBE from the gasoline blending in the United States. Among the several alternatives evaluated to keep the aggregate value to MTBE, the most attractive was ETBE, also used as additive for gasoline, produced with the replacement of methanol with ethanol. Environmentally, ETBE is better than MTBE, mainly referring to its miscibility in water and volatility, reducing atmospheric emissions.

ETBE is marketed with bonuses ranging from $ 200/t and $ 350/t above the MTBE price and can be considered a biofuel, being produced from ethanol, a renewable raw material, and not from methanol as for MTBE. With the same raw material availability (isobutene), an increase in production of about 17% of ETBE related to MTBE is obtained, due to the higher molecular weight of the ethanol reagent. Furthermore, Brazilian ethanol imported by Europe is taxed, differently from ETBE, which does not have importing tax. There is also prediction of growth in European and Japanese market through fiscal and regulatory incentive policies favoring renewable energy sources.

The great project gain was the reduction in the emission of greenhouse gases, setting the public commitment Braskem has signed in 2009, intending to reduce its emissions intensity, to use renewable raw materials, and to invest in innovative technologies in the search for sustainability. The modification by ETBE unit has led to a reduction of 76% in the emission of greenhouse gases (0.783 t CO2e/t ETBE, reducing about 100 kt/year).

With the conversion of MTBE units, the company has eliminated the production of a potentially cancerigenous substance, reducing health risk for its employees, besides reducing the potential contamination of groundwater by leakages of the product with high miscibility in the water.


BRF’s Energy Excellence Program

The Energy Excellence Program has been set up to structure a team of technicians drawn from the utilities and environment areas to identify opportunities to improve the company’s processes for enhancing energy efficiency. Given the large number of locations in various Brazilian states, the industrial units have been divided into regions, each one of them with an engineering professional dedicated to identify where improvements can be made, proposing technical solutions and obtaining operating results. Among all the processes, questions involving consumption of natural resources such as water, fuel, the rational use of electricity and environmental management are evaluated.

The professionals involved with these processes are continually seeking to rationalize the use of energy as it relates to fuels for steam generation (direct energy) and to the acquisition of electricity (indirect). Important results have been achieved in 2010 thanks to the development of new technologies, the tuning of operating procedures, and training.

Three working groups were set up to study electricity consumption, the use and consumption of steam and the increase in the efficiency of reforestation to obtain greater productivity from wood used as an energy source.

The groups, comprised of professionals from the various manufacturing areas, completed their diagnoses, identifying opportunities for increasing energy efficiency of the units’ equipment and processes. On the basis of these diagnoses, 420 actions were listed, divided between those of an operational nature and those involving investment, the execution of all will be concluded by the end of 2011.

Thanks to work already undertaken, BRF posted savings in electricity of 341,496 GJ in 2010 compared to 2009. The use of direct energy reported an increase of 3.8% in 2010, concentrated in renewable sources, and a reduction of 8.6% in energy from fossil fuels. A total of 94.89% of the company’s entire direct energy consumption was generated from renewable sources.

The generation of steam accounts for the largest percentage of direct energy consumption, for this purpose the boilers are being fueled with biomass in the form of wood chips, firewood logs or pellets. Due to the importance of this resource in its energy matrix, BRF’s aim is to increase productivity from its reforestation plantations by 25% using more advanced technologies that reduce the area needed for planting.

Sector: Food Production


Net Sales 2010: R$ 22,7 Bi

Employees: 113,000


Avoided emissions from CNEC WorleyParsons equal 25% of their total emissions

CNEC WorleyParsons is one of the founders of the Brazil GHG Protocol Program and joined the Businesses for Climate Platform (EPC) in 2011, reinforcing its commitment to measurement and management of greenhouse gases (GHG) towards a low carbon economy. Internally, the company has had an audited and consolidated GHG management program since 2007.

With the development of GHG inventories, it was estimated that the company has relatively low emissions compared to other companies, and even then, there have been significant reductions in its total emissions since the inventory base year (2007). From this perspective, year by year, it is becoming more complicated to reduce emissions. Even so, for the total emissions for 2010, three years after the implementation of the program, a reduction of approximately 23% has been obtained compared to 2007.

It was in 2009 that CNEC WorleyParsons began to quantify the potential emissions avoided by the recycling program (only paper, plastic, glass and metal by that time). In the following year, emissions avoided by recycling printer cartridges, use of video conferencing rooms (replacing travels) and its carpooling program were also quantified. By analysing the avoided emissions, the company can verify the effectiveness of their programs to reduce emissions, improve its environmental management system and measure the positive impacts of its program, considering that, at any given time, it will no longer be possible to reduce emissions.

Finally, the avoided emissions in 2010 reached 25% of the company's total emissions (avoided emissions are not subtracted from total emissions). With this result, CNEC communicated to the employees the importance of its programs, not only as a way of reducing GHG emissions but also to maximize the positive impacts of their management.

Assessment of Uncertainties

Another improvement in the GHG management at CNEC WorleyParsons was the assessment of uncertainties, which began in 2010 and consists of measuring the inventory’s margin of error, with a reliability of 95%. In this process it was possible to improve the accuracy and consistency of the data presented in the inventory and also to identify opportunities to reduce emissions more easily.

The biggest challenges are linked to data quality and analysis of methodologies, criteria and emission factors used in the preparation of the inventory, especially related to indirect emissions that are equivalent to about 95% of CNEC’s emissions. These indirect emissions (called scope 3 emissions in the GHG Protocol methodology) refer primarily to commuting and air travel. With the evaluation of uncertainties, there was not only an improvement of the inventory, but of the GHG management program as a whole, including reduction programs, especially in the carpooling program.

Sector: Engineering

Profit 2010 (EBITDA): R$ 13,3 Mi

Revenue 2010: R$ 159,7 Mi

Employees: 580


Ecofrotas promotes the convergence between the economic and ecological in the management of fleets and their emissions

Due to the phenomenon of climate change and the development of related policies, it has become clear that it is no longer possible to disassociate the concept of mitigating greenhouse gases (GHG) emissions from companies’ attitudes regarding sustainability. This context is even more evident in the case of Ecofrotas, being a company involved in the transport segment, one of the leading sources of GHG emissions.

Considering this fact, the Ecofrotas brand itself arose during the company’s repositioning process, which main objective was the drive to assist clients to reduce their GHG emissions. Today, this initiative is developed in parallel with the already traditional reduction of costs fostered through fleet management services. Furthermore, the company is now active as an inducer of transformation in the fleet management market by encompassing everything from client consultancy to the use of less pollutant vehicles, covering the preventative maintenance plan for fleets, the control of renewable fuel use and raising awareness among drivers about the importance of conscientious driving. In other words, it has shifted from being a supplier to being a strategic partner with its clients.

In order to consolidate this positioning, Ecofrotas has developed a series of actions, including adhesion to the Businesses for Climate Platform (EPC). Within this environment, it is in constant contact with the best practices in climate change and contributes to the construction of public policies that encourage the drive for a low carbon economy. This process has provided Ecofrotas a better understanding of the challenges faced by other companies in extending the emission management processes to encompass their productive chains. Through this, a great opportunity was identified for contributing to the integration of emission management of the company suppliers’ fleets.

Another very relevant point was the perception that, in many companies, there is a distinct lack of convergence in internal areas: the objectives of sustainability are aligned with the company’s global objectives; however, they conflict with the specific objectives of each area. In terms of fleet management, in many cases it is necessary to bring together the fleet and sustainability managers in order to make decisions jointly; only this way it is possible to find balance among economic, ecological and social factors.

In parallel to these actions with clients, Ecofrotas has been working towards the continued improvement of its internal processes, certifying its units with ISO 14.001, voluntarily responding to the Carbon Disclosure Project (CDP), drafting a sustainability report based on the Global Reporting Initiative (GRI) model, and conducting inventory of GHG emission (emissions in 2010 were compensated through the purchase of carbon credits).

All this effort can be summed up in the fact that, although the transport sector is only taking its initial steps in the direction of sustainability, leading companies have already proven the results of the partnership with Ecofrotas, both in the economy of operations and the reduction in CO2 emissions. Together, Kimberly‐Clark, Vivo, 3M, Protege and Sadia have already reduced the cost of their fleets by about 13% and prevented the emissions of some 30 thousand tons of CO2e.

Besides these companies, many others are already engaged in the process of making their fleets more sustainable, contributing to the mitigation of climate change. Ecofrotas’ challenge is to continue assisting its clients in this process, in an increasingly innovative manner.

Sector: Services



Employees: 380


Gelnex bets on the culture of emission inventories to contribute to a low carbon economy

Industries are increasingly seeking excellence in all areas, particularly in their role in a green and low carbon economy. In this sense, the choice and use of machinery and equipment, as well as facilities and processes should be designed based on the principles of sustainability. This is a corporate directive that led Gelnex to join the Brazil GHG Protocol Program in 2009.

The search for information on reducing emission of greenhouse gases (GHG) began in 2007, from the contact with the Climate Leaders program, which supports the accounting and disclosure of GHG emissions data in the United States. With the information in hand, the company invested in the staff training for the preparation of its first GHG inventory.

It was in 2009 with the adherence of Gelnex to Brazil GHG Protocol Program that the inventories became part of the company culture. From the production of inventories, two priority ways to reduce GHG emissions were observed: reduction by increasing efficiency in the use of fuels and by increasing the efficiency of logistics supplies and transport of the final product. The strategy is justified by the fact that more than 60% of the company's emissions are indirect.

Participating in workshops and working groups ‐ among them Brazil GHG Protocol Program ‐ Gelnex deflagrated a process of continuous improvement of its methodology for GHG measuring and accounting. In this context, new sources of indirect emissions were identified and started being recorded in the company’s inventory, which comes increasingly closer to represent the total of such emissions.

The use of renewable energy and the better use of natural resources is the focus of Gelnex since the beginning of its activities. Furthermore, from the knowledge acquired on their emissions since 2007, projects on energy efficiency, exchange of fossil fuels for renewable ones and the use of alternative sources of energy have been intensified. Some examples include the intensification of programs to reduce consumption of electricity and steam with the study of the current energy use, the beginning of solar and wind energy use, and an increased use of ethanol for the growing supply of the company’s vehicles.

The culture of reducing emissions in Gelnex led, in early 2010, to the creation of multidisciplinary committees in each production unit, with the sole purpose of monthly analysis of emissions and the creation of projects or processes to reduce them. In addition, the emission targets for each of Gelnex plants are reviewed annually in order to enhance and encourage the creation of new projects that result in more efficiency and less emissions. The most striking result of the whole process is a 10% reduction in specific GHG emissions from Gelnex since the beginning of the accounting process.

Sector: Food Production

Profit 2010 (EBITDA): US$ 11,6 Mi

Revenue 2010: US$ 70,7 Mi

Employees: 455


Itaú Unibanco incorporates more efficient and sustainable processes into the bank’s operations with the IT Green program

To incorporate sustainability throughout its structure, with a clear policy and integrated into the business, obtaining the adherence of employees and external stakeholders to adopt a transformational role, creating value for the business as well as for society. This is the commitment of Itaú Unibanco, the largest financial institution in Latin America and elected the most sustainable bank in the world at the 2011 FT/IFC Sustainable Finance Awards sponsored by the Financial Times and the IFC (International Finance Corporation). The dimension of this recognition is also the dimension of the organization’s responsibility.

The bank is developing with the support of strategies established for its operation and as set forth in its Sustainability Policy, besides solid corporate governance into which sustainability is progressively being inserted as integral to the institution’s decisions. Some initiatives for mitigating the impacts on the environment are being developed for facing the challenges surrounding socio‐environmental criteria and climate change, for example ‐ two themes of the bank’s Essence of Sustainability. The Green IT program is one of these examples.

The IT (Information Technology) Green program has introduced more efficient processes into the bank’s structure, ranging from the substitution of equipment to changes in working methods, seeking to reduce the costs of the operations and the impacts on the environment, such as CO2 emissions and electricity consumption, among others. The program rests on four pillars: the life cycle of products, energy efficiency, the green workplace and green applications. It is worth pointing out that the IT area is responsible for approximately 50% of the electric energy consumed by the entire holding company.

Mitigation of greenhouse gas emissions is one of the important points of the program. Progress was made on this front with the installation of telepresence suites at the company’s administrative hubs. At the end of 2009, three suites were installed to simulate the environment of an onsite meeting. In 2010, the bank implemented a further five and in 2011, another four telepresence suites, reducing the need for physical movement and consequently, greenhouse gas emissions. In the 653 meetings held in these locations during 2010, Itaú Unibanco avoided the movement of 32,955 land kilometers that its employees would have had to have made (with savings in taxi/car transportation costs) as well as 983,892 air miles (together with the cost of airfares and accommodation). These combined movements would have generated emissions of 236 tons of CO2. In 2011, the numbers continue to grow.

The greenhouse gas emissions inventory based on the GHG protocol shows that with public transportation together with the van shuttle service alone, the bank was able to successfully reduce emissions from 2,736.2 tCO2e in 2009 to 1,030.4 tCO2e in 2010. The goal of increased energy efficiency also features in the program through the virtualization of servers, modernization of Data Center infrastructure and the substitution of computer monitors at the end of their useful life for the more efficient LCD models. In this way some 19,511 GJ of electricity was saved.

The Green IT program was also responsible for the correct disposal of obsolete electronic equipment. In 2010, the challenge lay in the modifications required to complete the branch integration process as well as changes in the data centers, work stations and inventories. All this generated roughly 3,800 tons of electronic waste, collected by specialized companies and correctly disposed. Consequently, this also had a spin‐off impact on the value chain through the engaging of suppliers for providing equipment recycling services, in the process, these companies doubling their labor force while on the other hand the informal trade in electronic equipment is avoided.

The challenge of 2011 is to reduce gas emissions still further with the expansion of telepresence suites, now also to be installed at international locations, among other processes for improving the technology environments.

Sector: Financial Institution

Net Profit 2010: R$ 13,3 Bi

Employees: 108,040


Odebrecht performs an inventory of engineering and construction operations in 14 countries in three continents

In August 2009, Odebrecht participated in the conception of the “Open Letter to Brazil on Climate Change”. The document presents the voluntary commitments of 27 large companies to reduce greenhouse gas (GHG) emissions and the consequent minimization of the risks associated to climate change in Brazil and worldwide. The publication of annual inventories of emissions is one of its commitments and provides Odebrecht with an important challenge due to the diversity and geographical distribution of its engineering and construction operations.

In 2010, Odebrecht widened the commitment made in Brazil and decided to account for its emissions in all the countries in which it had engineering and construction operations. Inventories were performed on 117 projects and in 21 offices in 14 counties and three continents. The results are published in the Organization’s Annual Report.

The inventory provides information about the company’s profile of emissions, disclosing the predominance of indirect emissions, both by the use of inputs with high carbon content, such as steel and cement, and through the substantial use of subcontracted services. These indirect emissions are responsible for over 60% of the accounted emissions. As a result, Odebrecht is prioritizing management actions both for the emissions under its direct responsibility and for those that arise from its supply chain.

The inventory was also the starting point of a wider program regarding climate change. As decentralization is one of the pillars of Odebrecht culture, the challenge was to educate and involve teams in the field, by positioning the subject matter within the context of sustainability and its convergence with the values of Odebrecht Entrepreneurial Technology. A focus on people was essential to the success of the initiative, which was only achieved by the commitment and support of over 450 staff who were directly involved in an interactive and participative process.

The company also obtained detailed information about aspects of GHG emissions management in the engineering and construction sector, which had been rather unexplored up to this point. The results indicated the need of improvements in methodologies and definitions, in order for the next inventories to be effective tools for the guidance of business practices and for communication with society. Odebrecht has been working with other companies, suppliers, clients and with governmental agencies and society at large to define consistent criteria and approaches for the development of inventories in Brazil.

The mobilization and the knowledge provided by the inventory served as a platform to shift focus in 2011 to the improvement of the efficiency in the processes and in the controls in order to reduce emissions. As an example of pioneering approach, the team responsible for the construction work at the Santo Antônio Hydroelectric Power Plant (3,150 MW) implemented actions that resulted in a 10% reduction in the project´s direct emissions. It is important to emphasize that this project already has a highly positive emissions balance due to the additional generation of renewable energy allowed by the acceleration of the construction schedule. Such cases reinforce the motivation and the commitment of Odebrecht to contribute to a cleaner and more sustainable economy in the countries and the regions in which it operates.

Sector: Engineering and Construction

Profit 2010 (EBITDA): US$ 1,1 Bi

Revenue 2010: US$ 10,0 Bi

Employees: 91,170


Petrobras' thermoelectric cogeneration avoid emissions of approximately 453,000 tons of CO2 equivalent per year

Petrobras, as one of the largest energy companies in the world, is also one of the companies that more invest in energy conservation. One of the company’s strategic objectives is to maximize energy efficiency and to reduce its greenhouse gas (GHG) emissions’ intensity, looking forward to achieve excellence standards in the Oil & Gas industry, and contributing to the sustainability of the business. Petrobras has established voluntary commitments to improve energy efficiency in its facilities associated with an investment plan of US$ 1.2 billion for the period 2010 to 2015.

A case on energy efficiency project which results in GHG emissions reduction is Euzébio Rocha Thermal Power Plant (UTE‐EZR) cogeneration system, located in Cubatão, state of São Paulo, Brazil. The plant idea was raised as a business opportunity for Gas & Energy Business Area and a thermoelectric system modernization for Presidente Bernardes’ Refinery (RPBC), which is located adjacent to the site where the plant has been built. Thus, the UTE‐EZR was designed in combined cycle cogeneration, supplying not only electricity, but steam as well, with higher efficiency, to the refinery.

Before UTE‐EZR’s started its operation, RPBC’s steam needs were provided by boilers that were set primarily by fuel oil, supplemented by natural gas. These equipments had efficiency of around 75% and were in operation for several years.

UTE‐EZR was designed to have a gas turbine, a heat recovery boiler and a steam turbine. In addition, auxiliary boilers

provide the rest of the steam to fulfill the refinery needs. Therefore, besides the ability to supply 415 tsteam/h, the plant has the potential to produce 196 MW average of electricity. From this electricity produced, about 37 MW are purchased by the refinery to meet its own electricity demand and the rest is exported to the grid (National Integrated System).

Analyzing the scenarios presented in Picture 1 (energy) and Picture 2 (emissions), it follows that the refinery’s operation consumed approximately 13,000 TJ/year of fuel to run the old boilers. Simulations for a UTE of the same size of UTE‐EZR revealed that if the plant only provided electricity without cogeneration, it would consume about 10,400 TJ/year. This simulated configuration would result in a total energy consumption estimated of 23,400 TJ/year and GHG emissions of 1,463,000 tCO2e/year.

With the refinery and UTE‐EZR cogeneration’s integration, UTE‐EZR’s fuel consumption reached at about 19,500 TJ/year, attending the refinery’s thermal and electrical demands. This resulted in a potential reduction of GHG emissions around 453,000 tCO2e/year and about 3,800 TJ/year less fuel consumption. Estimation of CO2eemissions considered the main GHG: CO2, CH4 and N2O calculated by the Simulation Module of Petrobras’ Air Emissions Management System (SIGEA(c)).

This is an example of Petrobras’ several initiatives held in the Strategic Energy Efficiency Project. Other thermoelectrics in operation also have cogeneration and steam supply to nearby units. The case presented is an example of energy efficiency increase and GHG emissions’ reduction that can be applied by companies operating in the same business segment.

Sector: Energy



Employees: 80,492


Picture 1 ‐ Potential gains in terms of energy

Picture 2 ‐ Potential gains in terms of GHG emissions


Santander promotes replanting and contributes to combat climate change

Is it possible to build up a business and, at the same time, generate positive impacts for society? Santander believes so. In 2009, this belief led Santander to join Fundação Getulio Vargas on the Business for Climate Platform (EPC), the first Brazilian national platform formed to create a basis for regulation in the process of economic adaptation to climate change, which has contributed to the evolution of the issue about climate changes in the bank.

Previously, there was already the structuring of a climate organization, including initiatives to reduce greenhouse gases emissions (GHG). Since 2005, Santander has reduced such emissions per employee by 75%, but despite all efforts there were still emissions that could not be reduced.

A degraded areas reforestation project was a way to contribute even more to combat climate change, as it helps to offset the emissions that could not be reduced.

At first, the project focused the Vale do Ribeira area, known as one of the worst social realities of the southeastern region of Brazil. According to the HDI (Human Development Index), the region has the lowest indicators of health, education and development of the State of São Paulo. It was for such reasons that Santander has chosen the region to begin the project.

The project promoted, in its first year, the reforestation of 84 hectares of lands in the Registro and Barra do Turvo regions in Sao Paulo. Through a partnership with the NGO Gerar, in addition to environmental restoration, the local community was involved, and training and income generation projects were developed for the locals, related to the recovery and maintenance of reclaimed areas.

Some examples of such initiatives are the structuring of a cooperative to grow seedlings of native species and community capacity building in order to achieve sustainable management of 40 thousand Juçara palm seedlings planted by the Project in the basin of Rio Juquiá. The idea is to provide conditions so that the community can sustain itself from such learning and sustainable forest management.

Barra do Turvo, which is part of the Jacupiranga State Park territory, had its area damaged by grazing for buffalo. As a solution to the region, native species of Tropical Rain Forest were planted. In 2010, the Santander Forest moved onto its second stage by planting in Northern Paraná, in regions similarly damaged, with native forest restoration.

Currently, the project, which began to be implemented in March 2008 at Banco Real, already offsets 100% of direct (generators, company’s fleet of vehicles and helicopters) and indirect (events, courses, training and trips) emissions of Santander. Today, a total of 281,125 tree seedlings have been planted.

Sector: Financial Institution

Net profit 2010: R$ 7,4 Bi

Employees: 54,406


Suzano has became pioneer in calculating the carbon footprint of its products

Suzano is a forestry based company that for 87 years and have been operating in two segments: market pulp and paper. It is the second largest producer of eucalyptus pulp in the world, among the top ten in market pulp, and the leader in the paper market in Brazil and Latin America. In 2010, with the definition of a new strategic positioning, its operation has won the twonew fronts: renewable energy and biotechnology.

Since it is a forestry based company, Sustainability is included in the company's strategy.

Among its many projects focused on sustainability, Suzano believes that dealing with the climate change topic is extremely important and relevant. Suzano is aware of this issue and has been developing projects that will lead its business towards a low carbon economy.

The carbon footprint project, started in 2009, comprehends on calculating greenhouse gases (GHG) emissions associated with product life cycles. The limits to calculate a carbon footprint vary according to product category. To quantify the carbon footprint for B2B products, the scope calculation considers the stages from the raw materials production up to the customer’s gate. For B2C products, GHG emissions calculation includes “cradle to grave” activities, ie all activities included until final disposal of products.

Quantifying the carbon footprint of some of its products has allowed Suzano to be the first company of the global market pulp and paper sector in the world and the first company among all sectors in Latin American to calculate the carbon footprints based on the PAS 2050 methodology and labeled with the Carbon Reduction Label.

The PAS 2050 methodology was the first and is still the only published methodology for calculating product’s carbon footprint. The Carbon Trust validates and certifies this process and has labeled Suzano’s products with the Carbon Reduction Label. This label commits Suzano to reduce its product carbon footprint. Every two years these footprints will be recalculated and validated again by the Carbon Trust. And in order to keep the label, the carbon footprint must be lower. To reach it, Suzano has already implemented a process of analyzing opportunities to reduce GHG emission on its forestry and industrial processes.

That is why Suzano considers the commitment to reductions to be one of the top challenges related to the sustainability of its operations, a challenge that is directly connected to Suzano’s concern and commitment to offering excellent products to its customers and consumers.

Sector: Pulp and Paper



Employees: 4,352


The calculation and management of greenhouse gas emissions is a reaffirmation of Ticket’s historic commitment to environmental issues

A desire to play a relevant role in society lies in the origin of Ticket, an Edenred Group company. This position was consolidated with the change in its technological platform from paper to electronic cards, in‐house awareness‐building and selective waste collection programs, the use of 100% recycled paper in Ticket Restaurante, the move to a sustainable building (LEED certified) and the substitution of conventional printers and monitors for LCD screens, thus generating an energy saving of 40% and reducing printing consumption figures by 30%.

In 2009, Ticket was one of the founders of the Businesses for Climate Platform (EPC) and the following year it set up its Corporate Social Responsibility Committee. This engagement resulted in the greenhouse gases (GHG) emissions inventory being prepared, which was verified by the Bureau Veritas Certification. Joining the EPC also resulted in a consolidated business opportunity with Ticket Car, the leader in fleet management in the transportation market. Starting with control over the refueling of the 350,000 vehicles served by the product, Ticket developed two tools for calculating greenhouse gas emissions, in accordance with the GHG Protocol methodology: Ticket Car Carbon Control, which calculates CO2 emissions based on the fuel consumption of clients’ fleets for reduction purposes, and Ticket Car Carbon Free, which is a compensation program for emissions that are inevitable.

Participation in the EPC enabled the presentation of proposals and consolidation of the Ticket Car Carbon Control program, which was verified by PriceWaterhouseCoopers. Production of the inventory brought its challenges, like establishing procedures for data collection, the identification of Scope 3 activity emissions (scope referring to indirect greenhouse gas emissions, according to the GHG Protocol methodology) and definition of performance indicators in line with the ISO 14001 Environmental Management System, which is being introduced in the company.

Internally, the lines of chartered buses were reduced, thereby minimizing the effects of the biggest source of emissions: employee transport. In order not to prejudice users the company launched the “Solidarity Carpooling” campaign, by which those wanting to get a ride to and from work and those willing to provide it register on the intranet, thereby optimizing the use of private vehicles. Other measures will be taken and inevitable emissions will be compensated for with socio‐environmental projects. Ticket is also working to define an Environmental Policy for supporting its Environmental Management System within the scope of the on‐going ISO 14001 Certification process.

Externally, the new Ticket Car products make improvements feasible in fleet management by companies, by encouraging a reduction in emissions or their compensation. Ticket is concentrating its efforts on publicizing these tools and in promoting activities for raising environmental awareness among managers.

Among the next steps being considered by Ticket are: establishing a new management paradigm for defining reduction targets and compensating 2010’s emissions, investing in sustainable tools, getting to know the carbon footprint of its products and influencing suppliers to adopt the general rules of the low carbon economy.

Sector: Services



Employees: 634


Vale is committed to contributing to the development of a low‐carbon economy

Vale carries out its day‐to‐day activities in accordance with its Corporate Guidelines on Climate Change and Carbon that it instituted in 2008. Vale has conducted a greenhouse gases (GHG) inventory each year since 2005. This inventory provides the company with information on the amount of GHG gases emitted and helps it to develop strategies and action plans based on a low‐carbon economy.

Some examples of these actions include: investment in the protection of forests and other ecosystems; research and development of new technologies; improvement in energy efficiency and an increase in the use of renewable sources of energy. Vale supports and participates in the mobilization of industry groups, government and businesses in contributing to the development of regulatory standards in the search for solutions to climate change.

Greenhouse Gas Emissions

Vale releases information on its GHG emissions through its GRI Sustainability Report, the Carbon Disclosure Project (CDP) and the Brazil GHG Protocol Program. Vale received a gold seal by the program for having its 2010 GHG emissions inventory completed and verified.

With the goal of continuous improvement and increased adherence to the five principles of the GHG Protocol, in 2010 Vale provided training on GHG emissions to its employees involved with the issue. The training reviewed each of the components of the data analysis stage of the inventory (Transparency). The effort reduced uncertainties (Accuracy) and increased the robustness of the inventory.

As part of its GHG emissions reduction strategy, Vale seeks to continuously reduce specific GHG emissions through the management of its portfolio of emissions reduction and carbon sequestration projects. To do so, in 2009 it began implementing a Sustainability Action Plan (SAP) aimed at establishing improvements in its climate change indicators.

In addition, Vale encourages its suppliers and clients to reduce their GHG emissions. Vale joined the CDP Supply Chain program, an initiative that involves suppliers in the climate change issue in an effort to reduce Scope 3 emissions (scope refers to the indirect emissions based on the GHG Protocol). A pilot project is also underway to analyze the life cycle of a Vale product (Vargem Grande iron‐ore pellet operations), which includes its carbon footprint calculation or the total amount of carbon emissions from the production of inputs to delivery and consumption by the end user.

Vale considers the adoption of a global GHG emissions reduction target essential to mitigating impacts from climate change. In order to further reduce its emissions and make its production processes more efficient, Vale will validate its target in 2011.

Sector: Mining

Profit 2010 (EBITDA): US$ 26,1 Bi

Revenue 2010: US$ 46,5 Bi

Employees: 70,800

Date post:	11-Jan-2017
Category:	Education
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Brazilian Business Cases on GHG Emissions Management and Reduction

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