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    2017 - Communication on Progress

In Focus
Embraco presents Sustainability Report 2015 – 2016

Over 35 thousand people benefited by social projects; 10.6 thousand tons of recycled materials; zero industrial waste in landfills; 7 thousand tons of less CO2 emitted into nature. These are some of the numbers found in Embraco's Sustainability Report covering the years 2015 and 2016, released today, May 23rd, by the company. The report is global and brings the company’s results of its units – Brazil, China, Slovakia, Mexico, United States, Italy and Russia – and can be accessed in full at

The document presents information about actions and impacts generated by the company and for the community, reinforces Embraco's commitment to the Global Compact, renewed every year, and contemplates Sustainable Development goals established by the United Nations. The report also puts forth the strategy and steps that guide the company globally toward 2020, driven by product development and the sustainable value chain through engaged people.

“For us, Sustainability goes beyond developing intelligent solutions and is present throughout the value chain. In our view, relationships and processes also need to be sustainable and we believe in our potential to transform realities in the communities that live around our plants and offices around the world”, emphasizes Ursula Angeli, Embraco’s Vice President of Sustainability, Human Resources and Communication.

Supply chain

Following this commitment, in addition to offer products and solutions with greater energy efficiency and less raw material, Embraco operates in other links in the chain to contribute to a process that offers increasingly less socio-environmental impacts. In the last two years, the company consolidated its Supplier Excellence Program, which offers workshops and multidisciplinary work with the aim of improving chain performance in aspects related to service, quality, costs and sustainability. All aligned to the World Class Manufacturing methodology, aimed at operational excellence.

The company also promotes Supplier Day, a global relationship event that seeks to engage and recognize this public. Between 2015 and 2016, more than 160 suppliers participated in the events held in China, Brazil, Slovakia and Mexico, where they were able to discuss relevant topics such as efficiency in using natural resources, utilizing natural refrigerants and developing increasingly sustainable products. On this day, the best companies of the year are awarded taking into consideration criteria such as quality, cooperation, logistics and sustainability.

Product and innovation

According to the report, Embraco currently has an annual production capacity of 40 million compressor units, the technology responsible for preserving 1/5 of the food consumed worldwide. The company counts on 47 research laboratories, on four continents, responsible for developing and launching solutions focused on energy efficiency, the use of natural refrigerants – which have negligible contribution to global warming when compared to other fluids –, cost reductions and space optimizations (miniaturization).

With the goal to have increasingly sustainable products, the company invests from 3% to 4% of its net revenue in R&D to transform technology into innovation. “This is what challenges us to go beyond and keeps us as the global benchmark in the refrigeration market”, emphasizes Luis Felipe Dau, CEO of Embraco. The report also shows that 59% of the company's revenue over the last 5 years comes from innovative solutions launched in this same timeframe.

“We have intensified the company's cultural transformation in order to become even simpler, more innovative and customer-centric. Our mission is to provide innovative solutions for a better quality of life. We’re proud of the path we’ve traveled so far and this was only possible because we have an engaged team of the highest caliber, a reference in the industry”, concludes Dau.

Energy Efficiency

The Sustainability Report provides information on Fullmotion compressors, which consume 40% less energy compared to conventional technologies, and Wisemotion, the only oil-free compressor in the market, with 20% more energy efficiency when compared to the most efficient compressors, taking-up less space, facilitating logistics and food preservation.  If all Fullmotion compressors sold in the last ten years were added together, an energy savings equivalent to nine billion KWh would be enough to supply Croatia for six months.

Saving energy is a constant concern in manufacturing Embraco products. Implementation of the World Class Manufacturing (WCM) methodology, especially the Energy Pillar, has boosted energy efficiency initiatives across all plants. WCM also seeks to achieve zero accidents, zero losses and zero defects, focusing on operational excellence.

Reuse, recycling and cost reduction

In 2015, the Brazil plant zeroed out sending industrial waste to landfills, a demonstration that the company is on track to meet the goal to zero out sending waste to landfills of all compressor plants by 2018 and the foundry by 2022. Last year, the company generated 116,200 t of waste globally. Of this total, 86.3% was recycled and 13.4% was destined for landfills.

Of all the water Embraco consumed globally in 2016, 27% was reused. Special highlight goes to the compressor plants in Brazil, China and Mexico.

Another important initiative related to sustainability is the Nat.Genius program, which transformed the reverse logistics process for electro-electronic waste and began recycling several product lines, thus collaborating in the waste management of the company along with other customers in Brazil, Europe and North America. In two years, according to the report, Nat.Genius recycled 5,656 tons of steel, enough to produce 4,000 cars; and another 3,000 tons of iron, a volume that would be sufficient to construct 42% of the Eiffel Tower. The numbers are overwhelming and prove the importance of the program, which has become a world reference recognized by the Ellen MacArthur Foundation.

Communities and People

Numerous projects and voluntary activities in the communities of Brazil, China, Slovakia, Italy and Mexico have already contributed to the well-being of over 35,000 people. Just the Embraco Ecology Award alone, held since 1992 in schools in Joinville (SC), has received 823 projects in its 24 editions, of which 106 were selected and implemented under the company's sponsorship. With more than 100,000 beneficiaries, it was ranked among the best practices of the UN Global Compact.

In the last biennium, close to five thousand hours of volunteer work were carried out with the support of more than 500 employees at events such as Global Volunteer Day. Additionally, the company has the Embraco Sports Association, located in Joinville/Santa Catarina, which is open every day to the community, an invitation to practice activities and for leisure.

But nothing moves the company more than the hands of its nearly 11,000 employees. That’s why the company invests in internal programs, quality benefits, scholarships and training.