Sustainability Report PREVI 2009

The current PREVI administration has been attentive to the impacts and opportunities concerning sustainability directly related to its structure and organization. Despite their small importance when compared to the potential impacts resulting from the entity's relationships, particularly with regard to investments, its initiatives aiming at the improvement of the socio-environmental management of its internal structure represent to PREVI a way to restate its values and commitments concerning sustainability.

The above understanding is formalized in the "Política de Responsabilidade Socio- ambiental da PREVI" (PREVI's Socio-environmental Responsibility Policy) which sets the guidelines for taking into consideration in the administrative procedures and in the information technology of parameters that incorporate environmental and social aspects, such as the sustainable use of resources, the adoption of responsible attitudes concerning the production and disposal of residues, in addition to the evaluation and adequacy of functions, chores, products, environment and systems, in order to make the compatible with the persons' needs, skills, and limitations.

Administrative Results

PREVI's 2009 administrative expenses totaled R$169.3 million, reflecting an increase of approximately 15 % in relation to those of the previous period brought to present value. That amount is equivalent to approximately 6.5 % of the entity's total Pension Fund income.

The largest portion of the expenses (R$105 million) was allocated to salaries. Other R$42.1 million were directed to pay services rendered by third parties, and R$18.7 million to pay for other expenses.

Ethics and conduct in management

PREVI has codes of ethics and conduct rules recently reviewed in order to bring them in line with the new PREVI requirements and to expand the target-public in the investigation of incidents, propitiating more equity when analyzing the ethical questions which involve collaborators and other publics with whom PREVI maintains a relationship.

The Code of Ethics was widely announced and is available at the entity's site in Internet. It is a public code and has a set of principles and values that PREVI and its collaborators propagate, respect and put in practice in all their relationships. In addition to encourage respectful attitudes and condemn harassments and discrimination, that Code clearly defines what stances should be taken with regard to situations subject to conflicts of interest and practices of corruption.

At the time when the new version of the Code of Ethics was issued, PREVI carried out a lecture involving all its collaborators. In 2009, the ethical guidelines and rules of conduct were also included in the Clinic about Ethical Conduct and Socio-environmental Responsibility of the Succession Program.

PREVI professes that ethical attitudes and a management style obedient to values and principles are indispensable to all organizations and a necessary condition to build relationships that might contribute to the country's development.

PREVI does not indulge in donations to politicians, political parties and related institutions, and has not been informed about any instances of corruption involving the organization or any of its collaborators.

Use of funds

Little by little, PREVI has been developing and implementing initiatives aiming at achieving greater efficiency and minimizing the use of resources and materials in its operations and within its working quarters. Despite acknowledging that the impacts associated to the above processes are limited, the entity has strived to adopt unsophisticated attitudes that do not require great effort or resources, capable of producing effective results no only with regard to objective aspects - like the reduction or the optimization of corporate consumption -, but also in relation to motivating people and the multiplication of responsible attitudes throughout its extensive relationship web.

On June 5th. 2009, on occasion of the celebration of Dia Mundial do Meio Ambiente, aiming at reducing the use of plastic cups in the office, motivate the fellow employees with regard to the importance of the rational use of natural resources, and stimulate their socio-environmental awareness; PREVI distributed to each employee a china cup.

Used instead of the throwaway ones, those cups helped to reduce the consumption of that item in about 16.5 thousand units in relation to last year's.

To reduce the consumption of ink cartridges and toners in its offices, PREVI uses printers that work in a front and back printing system in the "Fast Draft" mode. In 2009 that entity obtained reductions of approximately 15 % and 8 % in the utilization of toners and printing paper, respectively, when compared to the previous year.

Last year, at the time of the publication of PREVI's Annual Report, a research was conducted among the participators about their interest or not in receiving a printed copy of that publication. That consultation took place between the months of December 2008 and February 2009. After tallying the results, PREVI reduced the number of copies printed, each one with 144 pages, by close to 42 thousand. Such an initiative, supported by a group of participants, among other impacts, reduced the use of paper and resulted in substantial savings.

The installations of PREVI's offices were planned so as reduce the consumption of the taps and flushes of the toilets count with electronic devices that make them open and close automatically, with the consequent reduction in the consumption of water. The Head Office building uses mechanisms to reduce the use of electric energy. The illumination of the corridors is made by means of high efficiency lamps and sensors that turn themselves off when they do not detect the presence of people. The glasses in the windows have protecting films which prevent the rising of the internal temperature without impairing the sunlight in the premises, reducing thus the use of air conditioning and the use of artificial lighting. Little by little, according to the TI policy, the CRT monitors of all computers are being replaced by the LCD ones, that use less energy.

Soon after the approval of the RSA Policy, many employees sent suggestions concerning recycling. A study was then carried out detailing the measures already adopted and the opportunities to act in that field.

Based on that study, it is under elaboration an eco-efficiency program which will have indicators that will follow up the use of each of the items more consumed by PREVI, along with a campaign addressed to employees and participants about conscious consumption.

Management of residues and recycling

Parallel to the initiatives adopted for reduction of paper consumption in its quarters, PREVI carries out a selective waste collection of the residues produced in its Head Office. The administration of the building where the PREVI is located has an agreement

for the donation of that material to a scavangers'cooperative, that takes away, selects and sends to the right destinations the discarded material.

Purchases and supplies

PREVI's RSA policy sets the guidelines concerning the socio-environmental aspects in the selection, contracting and management of suppliers, observing the criteria already defined towards the purchase of those products that least affects the society and its environment. That policy includes also a stimulus towards the insertion of sustainability aspects to the activities of the suppliers; the promotion of the joint engagement in the management of the impacts produce by the goods and services used in PREVI's procedures; and the encouragement in favor of a differential management to look after the employment conditions of third party employees.

Since the formalization of the RSA Policy in June 2009, PREVI could not yet adjust completely its management procedures to those established in that document. The implementation of a policy towards suppliers that takes into consideration socio-environmental aspects in the procedures of selecting, contracting and managing companies, and the definition of criteria that orient the alignment of the internal procedures of the entity, are part of the goals and of next steps to be taken in the implementation process of the RSA Policy.

Currently, the supervision and the management of suppliers and contractors fulfill the requirements demanded by the law and include the monthly monitoring the retentions of taxes and labor contributions of the companies that provide outsource employees as well as the monitoring, jointly with the third parties, to check the existence of occasional occurrences. Every year, the contractors make available the documentation and the vouchers requestedrequested documents in order to be included in PREVI's files.

PREVI has no specific policy or procedure to follow when contracting local suppliers, but except in case of some specific services, of works and services to be rendered in other states, and of providers of exclusive services, the general rule is to hire suppliers and con tractors based in Rio de Janeiro, where the entity's head office lies.

In 2009, PREVI's purchases including contracts with monthly payments and fixed price contracts amounted to R$87, 2 million. During that period close to 437 companies and contractors supplied products or services to PREVI.