Table of
Contents
04 Presentation
08 Message from the
10 Message from the
12 Institutional
President and CEO
Board of Directors
Profile
24 Customers
30 Shareholders
34 People
38 Partners
40 Society and the
44 Annex
Environment
|G4-18|
Since 1999, Embraer S.A. has shared its annual report, with a state-
ment on operational, financial and socio-environmental performance,
explained results in their context and presented advances in practic-
es of corporate governance, ethics and compliance. |G4-3, G4-7, G4-30|
This edition complies with Global Reporting Initiative (GRI) G4 Guide-
lines, in accordance – Core option. The content was prepared through
interviews with the Board of Executive Officers and based on the com-
pany’s Materiality Matrix (see page 6). The data covers the financial
year of January 1 through December 31, 2016, and encompasses
all sites in Brazil and abroad, except where identified otherwise in
explanatory notes. All Embraer sites included in the consolidated fi-
nancial statements are within the scope of this report. Eventual re-
formulations of information disclosed in previous reports are clarified
throughout the content. |G4-17, G4-22, G4-23, G4-28, G4-32|
In line with best market practices, references from the Dow Jones
Sustainability Index (DJSI), from the BM&FBOVESPA’s Corporate
Sustainability Index (ISE, in Portuguese) and from the Global Com-
pact of the United Nations (UN), of which Embraer is a signatory,
were also considered.
The financial data follows International Financial Reporting Standards
(IFRS) and was submitted for external verification by KPMG Indepen-
dent Auditors. The inventory of greenhouse gas (GHG) emissions was
audited by Lloyd’s Register Quality Assurance (LRQA), whereas the oth-
er information was verified internally, without external verification of this
publication. |G4-33|
To learn more, access http://ri.embraer.com.br/Default.aspx?lin-
guagem=en# or contact the e-mail address investor.relations@em-
braer.com.br. |G4-31|
Enjoy!
4
STRATEGIC SUSTAINABILITY DIRECTIVE |G4-18|
Building a sustainable future is one of Embraer’s values (see page 15), and as such, it is part of the company’s strat-
egy. In order to identify high-priority issues of sustainability, Embraer carries out a specific consultation process with a
formal review every three years. Thus, the Materiality Matrix graphically expresses the combined vision of the compa-
ny’s management and stakeholders regarding the relevance of a predefined set of sustainability issues. The current
matrix is the result of consultations made in 2013. Throughout 2016, a new and amplified survey was conducted,
generating the 2017-2019 materiality, which is presented in the Annexes section.
Embraer Materiality Matrix (2014-2016)* |G4-27|
• Noise
• Management of natural
resources and waste
• Atmospheric emissions
• Human and labor rights
• Health and safety
• Ethics
• Attraction,
developing and
retaining HR
• Product safety
• Preventing
improper use
of product
• Transparency and
communication
• Management of
• Management of
chemical substances
• Management of
environmental life cycle
supply chain
• Local socio-economic
development
• Research, development
and innovation
• Control of exports
• Sustainable new
business, products
and services
• Bio-diversity
• Philanthropy
and volunteering
• Dematerialization
• Engagement with
public authorities
• Crisis management
• Privacy and security
• Local production chain
of information
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Influence for business strategy
GOVERNANCE | ENVIRONMENT | STAFF | VALUE CHAIN | PRODUCTS, SERVICES AND CUSTOMERS
The company’s performance in relation to the priority themes of the Materiality Matrix is evaluated by
the Master Sustainability Plan, which presents indicators and triennial targets. With a review every
three years and annual revaluation, the first cycle of the plan came into force in January 2015, with
horizon of December 2017. |G4-2|
* The limit of the material aspect outside of Embraer can be found in the GRI indicators. |G4-21|
6
MASTER SUSTAINABILITY PLAN |G4-2|
No.
Aspect
Indicator
Dec. 2017 Goal
20151
2016
1
2
2
3
3
4
5
6
7
8
8
8
8
8
8
Ethics
Percentage of adherence to compliance
policy and procedure.2
Favorability percentage in the climate survey.
Attraction, develop-
ment and retention of
human resources
Attraction, develop-
ment and retention of
human resources
100%
80%
Managers: 100%*
Non managers: 98.98%*
*considering the trainings held on
Anti-Corruption - Code of Ethics and Conduct
Managers: 96%
Non managers: 98%
*considering the trainings held on
Anti-Corruption – Code of Ethics and Conduct.
89%
There was no survey in 2016; the company
opted for a bi-annual engagement survey. En-
gagement survey will take place in May 2017.
Number of staff training hours per year.
500,000 hours per year
557,077 hours
Product safety
Maintenance of type-approval certificates (CHT, in Portu-
guese) for commercial and executive aviation planes.
100% of type certificates valid.
Product safety
Maintenance of company-approval certificates (CHE, in
Portuguese) in all Embraer sites of interest as defined in
conjunction with the business units.
100% of all sites of interest certified.
100%
100%
625,416 hours
100%
100%
Management of
chemical substances
Development of the new chemical substance manage-
ment system to ensure an adequate level of knowledge
of the product’s chemical composition for compliance
with current and future environmental legislation.
Phase I – definitions and structuring: until February 2015;
Phase II – platform availability and data input:
until December 2016;
Phase III – full operation of the system: until December 2017.
Finalized: the first phase of the modification
of the registration of hazardous substances
in SAP. In progress: training of employees who
register substances in the system. Start of
data input into the system, aiming to comply
with environmental legislation. As of December
2015, all registrations already incorporate the
modifications made to the modified system.
Finished the structuring and definitions pha-
ses. Carried out training for all those involved
in the registration of chemical substances
in the SAP system. All inputs comply with
current legislation.
Management of
supply chain
Percentage of suppliers classified as "high
environmental risk" in risk evaluations.
0%
Export control
Percentage of adherence to export policy and procedure.
100% adherence to the compliance evaluation survey.
0%
77%
0%
97%
Sustainable new
business, products
and services
Management of natural
resources and waste
Management of natural
resources and waste
Management of natural
resources and waste
Management of natural
resources and waste
Number of new business, products and services incorpo-
rating principles of Sustainability.
Annually launch project that demonstrates
the inclusion of sustainability.
Non-chrome leather available from tannery for
use in aircraft interiors.
Partnership with Boeing in the Eco demons-
trator program. Technology tests aimed at
reducing fuel consumption, CO2 emissions
and noise.
Consumption of energy (MWh) per equivalent plane.
Reduce by 3% consumption by equivalent plane, in relation to
the base year 2014 (603.78 MWh/equivalent aircraft).
551.96 MWh/aircraft equivalent
(reduction of 9%)
499.79 MWh/equivalent aircraft
(reduction of 17%)
Consumption of water (m3) per capita.
Reduce by 4% per capita consumption of water, in relation to
the base year 2014 (44.66 m3/per capita).
41.78 m3/per capita (reduction of 6%)
42.49 m3/per capita (reduction of 5%)
Generation of solid waste/net revenue.
Generation of dangerous solid waste/net revenue.
Reduce by 3% the total generation of waste per million dollars
of revenue, in relation to the base year 2013
(2.76 t/million dollars).
Reduce by 3% the total generation of dangerous waste per
million dollars of revenue, in relation to the base year 2013
(0.5 t/million dollars).
3,21 t/million dollars (increase of 16%)
2,95 t/million dollars (increase of 7%)
0.57 t/million dollars (increase of 14%)
0.5 t/million dollars (maintenance)
Management of natural
resources and waste
Percentage of manufacturing plants and
Embraer service centers with ISO 14,001 certification.
100% of manufacturing plants and service centers that
existed in 2014 with ISO 14,001 certification.
47.05% (FLM, EGM, ELEB, BOT,
GPX, TTE and EVO)3
47.05% (FLM, EGM, ELEB, BOT,
GPX, TTE and EVO)3
Management of natural
resources and waste
Percentage of manufacturing plants and
Embraer service centers with relation to
environmental liabilities.
100% of manufacturing plants and
service centers that existed in 2014 with relation to environmen-
tal liabilities (and their respective treatment plans).
New acquisitions of buildings, installations or businesses, must
be preceded by evaluation of environmental liabilities (environ-
mental due diligence), aiming to ensure access to necessary
information for the company to make decisions.
76.47% (13 of 17)
76.47% (13 of 17)
9
Atmospheric emissions
Emission of greenhouse gases
(scope 1+2)/net revenue.4
Reduce by 3% the emission of greenhouse gases (scope 1+2) per
million dollars of revenue, in relation to the base year 2013.
5.48 t/million dollars (increase of 8%)
4.09 t/million dollars (reduction of 19%)
9
Atmospheric emissions
Emission of VOC/net revenue.
Reduce by 3% the emission of VOC per million dollars of revenue,
in relation to the base year 2013 (0.0063 t/million dollars).
0.0034 t/million dollars (reduction of 46%)
0.0011 t/million dollars (reduction of 82%)
10
Human and labor rights
Percentage of individual suits and labor complaint
procedures per employee.
Standard of excellence (to be a reference in the market), remain-
ing below the national average for companies in the same sector,
in accordance with each country’s regulating organizations.
0.391%*
*corrected number
0.306%
11
11
12
13
13
13
14
14
14
Employee health
and safety
Lost Time Injury Rate (LTIR)
To reduce the frequency rates of lost time accidents by 30%,
in relation to 2014’s accident frequency rate (1.74).
2.25 (increase of 29.31)
1.19 (reduction of 31.6%)
Employee health
and safety
Percentage of manufacturing plants and
Embraer service centers with OHSAS 18,001 certification.
100% of manufacturing plants and service centers that
existed in 2014 with OHSAS 18,001 certification.
47.05% (FLM, EGM, ELEB, BOT,
GPX, TTE and EVO)
47.05% (FLM, EGM, ELEB, BOT,
GPX, TTE and EVO)3
Transparency and
communication
Percentage of indicators responded to in the company's
Global Reporting Initiative (GRI) report.
Annual GRI Report Coverage Level.
89.65%
89.65%
Management of the
product’s environmen-
tal life cycle
Management of the
product's environmen-
tal life cycle
Management of the
product's environmen-
tal life cycle
Environmental requirements for developing products.
Incorporate environmental requirements, in addition to those for
sound and emissions, for 100% of products launched.
Use of the simplified evaluation of the product life
cycle ("DfE Matrix").
Use "DfE Matrix" to evaluate 100% of new products launched;
for already existing products, evaluate the equivalent for at a
minimum of 50% Embraer revenue.
Customer orientation regarding the end of
the product's life.
Define document containing Embraer product strategic
guidelines with relation to its end of life.
The incorporation of the product’s environmen-
tal requirements was implemented in the E2
program. The verification of satisfaction of these
environmental requirements, in the E2 program,
is in progress.
For the next aircraft program to be launched by
the company, all environmental requirements
will be incorporated, using the DIP (Integrated
Development of Products) process.
The incorporation of the product’s environ-
mental requirements was implemented in the
E2 program. The verification of satisfaction of
these environmental requirements, in the E2
program, is in progress.
For the next aircraft program to be launched
by the company, all environmental require-
ments will be incorporated, using the DIP (In-
tegrated Development of Products) process.
New products in 2015: Legacy 450, which was
evaluated using the DfE Matrix. Total portfolio:
E-jets, Phenoms and Legacy 500/450 already
evaluated, responsible for 86% of
Embraer revenue.
There were no product launches in 2016.
Total portfolio: E-jets, Phenoms and Legacy
500/450 already evaluated, responsible for
84.6 % of Embraer revenue.
Concluded: the technical guide containing oper-
ational guidelines for customers for the proper
disposal of products at the end of their life.
Concluded: the technical guide containing
operational guidelines for customers for the
proper disposal of products at the end of their
life. Started: the forming of Corporate Policy
for Products' End of Life.
Local socio-economic
development
Evaluation average (Balance Score Card) for the results
of annually supported projects in the scope of the Social
Partnership Program.
Local socio-economic
development
Number of Embraer volunteers engaged in Entrepreneur-
ship programs, Social Partnership Program and other
social projects recognized by the Embraer Institute.
Grade 4, in an evaluation of 0 to 5 points.
2.45
3.44
Increase 20% the number of volunteers.
+12% (565 volunteers)
+56.72% (793 volunteers)
Local socio-economic
development
Approval of Embraer High School students
in entrance exams.
Maintain the rate of approval above 80% for Embraer High
School students for their entrance exams.
Embraer Juarez Wanderley High School: 84%
of public university approval
Embraer Casimiro Montenegro Filho High
School: 83% of public university approval
Embraer Juarez Wanderley High School: 86%
of public university approval
Embraer Casimiro Montenegro Filho High
School: 87% of public university approval
15
Research, development
and innovation
Percentage of annual investment in technological devel-
opment applied to projects with environmental gains.
Continual increase of the percentage of annual investment in
technological development applied to projects with environmen-
tal gains, up to the minimum of 50% for the base year 2017
(resource to be applied in 2018).
78%
80%
1. Due to fall of revenue in 2015, some indicators have been significantly altered.
2. Considering the training carried out on Anti-corruption – Code of Ethics and Conduct.
3. This goal has been revisited and to ensure its achievement its deadline has been extended to the next 2018-2020 cycle.
4. Considering Scope 1 emissions related to: fugitive emissions; fuel consumption other than kerosene (jet fuel); and jet fuel consumption from production flights (the current portfolio aircraft). Fuel consumption from development flights, new product certification, as
well as the Defence and Security UN aircrafts, are not considered.
Revenues for the year were US$6.2 billion,
up from US$5.9 billion the previous year.
In our order portfolio, we have accounted
for US$19.6 billion in firm orders (backlog)
and we have achieved an adjusted net prof-
it of US$290.5 million, with positive opera-
tional margins for our three business units
– a result we will seek to intensify in the
upcoming years.
Our programs have consistently progressed,
ensuring proper execution of their sched-
ules and budgets. Earlier this year, we cel-
ebrated the inaugural flight and the start of
the certification campaign for the E190-E2,
the first second-generation jet of Commer-
cial Aviation’s E-Jets family. Since its launch,
the aircraft has received 275 firm orders
and 415 letters of intent, options and pur-
chasing rights, a total of 690 commitments
from airlines and leasing companies. The
model’s first units will be delivered in 2018.
The KC-390, a multi-mission military air-
craft, successfully completed its first in-
ternational mission: it has traveled more
than 30,000 kilometers in Africa, Europe
and the Middle East, in addition to the
long transatlantic ferry flights. This is the
largest aircraft ever to be manufactured in
Brazil, and it sets new standards for the
category opening up the opportunity for us
to expand the globalization of the Defense
& Security business. The program’s current
focus is on solely on the certification cam-
paign, scheduled to be completed in the
second half of 2017, with the first delivery
planned for the following year.
In Executive Aviation, we have continued to
invest in the improvement of the Phenom
100 and Phenom 300 (the world‘s best-sell-
ing business jet for the fourth consecutive
year) and of the Legacy 450 and Legacy 500
jets, in addition to enhancing the Legacy
650. We also delivered the 1,000th executive
jet, a Legacy 500, and we were recognized by
U.S. publications Aviation International News
(AIN) and Pro Pilot Magazine in the rankings
for product support and customer support,
respectively. This strengthens our position
in customer loyalty, which must be achieved
through every relationship opportunity, from
prospecting to after-sales. At the end of the
year, we announced the creation of a busi-
ness unit focused on services and customer
support. With the start of operations sched-
uled for the first half of 2017, the unit will be
responsible for the development of support
solutions for products and services, both cur-
rent and new, as well as for managing the
associated processes and resources.
This was also the year of the conclusion
of the investigation into misdeeds in four
transactions conducted abroad, between
2007 and 2011. We deeply regret these
events, but we are certain that we have
grown with this experience. We entered into
agreements with Brazilian and U.S. authori-
ties and we have turned the page, focusing
on the continued strengthening of a sustain-
able culture that is founded on the pillars of
integrity and business ethics. With improved
processes and controls, we have advanced
in our trajectory of success, which has been
recognized throughout our 50 years, with
more than 8 thousand aircraft delivered to
the market, in 90 countries.
We are prepared for the future, with mod-
ern products and adjusted operations.
We continue to focus on the company’s
sustainability and we reaffirm our com-
mitment to the United Nations (UN) Glob-
al Compact. For the same reason, we are
celebrating one more year of listing on the
Dow Jones Sustainability Index (DJSI) and
on the BM&FBOVESPA’s Corporate Sustain-
ability Index (ISE, in Portuguese).
We believe that the secret to Embraer’s lon-
gevity are the people who are part of the
company, to whom we are extremely grate-
ful. Together, we remain confident that we
will always generate value for customers,
shareholders and communities.
Paulo Cesar de Souza e Silva
President and CEO
9
Message
from the
President and CEO
|G4-1|
Prepared for the future
We finished 2016 with the certainty that we overcame many chal-
lenges, and that we are ready to start a new cycle of achievements
in the company. At the beginning of the year, we inaugurated the
Embraer Corporate Office (ECO) in São Paulo, with the goal of con-
centrating the company’s corporate activities in one central unit, in
search of greater synergy and a global vision. This period has been
marked by adverse conditions and a deterioration of the compet-
itive landscape: emerging markets’ commercial activity continued
in deceleration and global political and economic instabilities have
affected sector demand. In this context, our company has been dili-
gent in adjusting costs and expenses to the current market scenar-
io and launched “Challenge 200,” in search of US$200 million in
annual savings throughout our operations—these are fundamental
adjustments to ensure the growth of our strength and competitive-
ness in the coming years.
8
and the Securities and Exchange Commis-
sion) and U.S. authorities (Department of
Justice and the Securities and Exchange
Commission) due to certain irregularities
identified in four sales contracts, this past
decade. The company has greatly strength-
ened its Compliance and Internal Controls
Program and has implemented an ongoing
training program for ethics in relationships
with its business partners, both internal
and external. Additionally, important struc-
tural changes have been made over the
last few years, with the Compliance and
Internal Audit department now reporting
to the Board of Directors through the Au-
dit and Risk Committee. The company has
learned from these facts and is taking the
necessary steps to ensure that similar
events never happen again.
We look to the future with great optimism,
backed by a modern and competitive port-
folio of products in all business units, by
the satisfaction of our current customers,
by the level of governance achieved and by
the high quality of our employees.
Alexandre Gonçalves Silva
President of the Board of Directors
Message
from the Board
of Directors
|G4-1|
2016 was a year marked by important events for the company.
The continued development of the E2 Programs in Commercial
Aviation and of the KC-390 Program in Defense and Security
has progressed successfully, and on track with the schedule
established for certification and entry into operations in 2018.
Significant changes were made to the Board of Executive
Officers, with the appointment of a new President and CEO,
Paulo Cesar de Souza e Silva, formerly the head of the
Commercial Aviation unit, the company’s main business,
and the replacement of the General Counsel & Chief Com-
pliance Officer, with the hiring of Fabiana Klajner Leschzin-
er. Additionally, new leaders were selected for Commercial
and Executive Aviation, and the creation of a new business
unit was announced with a focus on Service and Support.
These changes aim to bring the company closer to final
customers and to increase the agility of the company’s
decision-making process.
After six years of in-depth independent investigations and
the company’s unrestricted collaboration, an agreement was
reached with Brazilian authorities (Federal Public Prosecutor
10
Israel Vainboim, Josué Christiano Gomes da Silva, Samir Zraick, Alexandre Gonçalves Silva, Sérgio Eraldo de Salles Pinto, Alexandre Magalhães
Filho, Cecília Mendes Garcez Siqueira, José Magno Resende de Araújo, João Cox Neto, Pedro Wongtschowski and Hebert Claros da Silva
11
Institutional
12
Embraer is the result of the work of thou-
sands of people who, throughout 47 years,
have taken on the challenge of establishing a
Brazilian company as one of the main forces
in the global aerospace market.
Founded in 1969, the company started opera-
tions in São José dos Campos, Brazil, its head-
quarters to this day, with current presence in
10 Brazilian cities and 17 more cities abroad.
The company also holds 51% of the shares of
Visiona Tecnologia Espacial Telebras, a joint
venture with Telebras; and 65% of the Por-
tuguese company OGMA, which specializes
in aircraft maintenance and manufacturing.
Comprising the holding structure are also the
companies ELEB, Embraer Aero Seating Tech-
nologies (EAST), Atech, Savis and Bradar. |G4-5,
G4-6, G4-8, G4-9|
With cutting-edge technology and human
resources, the company designs, develops,
manufactures and sells aircraft, systems and
solutions for the Commercial Aviation, Execu-
tive Aviation and Defense & Security segment
(see page 24), offering customer support and
services in over 100 countries. |G4-4|
Embraer ended the fiscal year with 18,506
employees throughout the world and deliv-
ered 240 aircraft, recording US$6.2 billion
in net income and US$19.6 billion in firm
orders. |G4-9|
EVERY 10
SECONDS,
AN EMBRAER
AIRCRAFT TAKES
OFF SOMEWHERE
IN THE WORLD
LARGEST BRAZILIAN
COMPANY IN THE
DEFENSE AND
SECURITY SEGMENT
GLOBAL LEADER
IN COMMERCIAL
JETS WITH UP TO
130 SEATS
5th
LARGEST
MANUFACTURER OF
EXECUTIVE JETS IN
THE WORLD
Every day the world
gets more Brazilian.
Every day Brazil is more global. |G4-6, G4-8|
UNITED STATES
DALLAS
FORT LAUDERDALE
IRWINDALE
JACKSONVILLE
MELBOURNE
NASHVILLE
TITUSVILLE
WINDSOR LOCKS
MESA
IRELAND
DUBLIN
UNITED KINGDOM
BURGESS HILL
FARNBOROUGH
FRANCE
LE BOURGET
|G4-56|
VISION
Embraer will further con-
solidate its position as
one of the leading forces
in the global aerospace
and defense and security
industries. Embraer is a
market leader in the seg-
ments in which it operates
and commands a reputa-
tion for excellence.
MEXICO
CHIHUAHUA
SERVICE
CENTER
MANUFACTURING PLANTS
ENGINEERING AND
TECHNOLOGY CENTERS
LOGISTICS
CENTER
NETHERLANDS
AMSTERDAM
PORTUGAL
ALVERCA
ÉVORA
UNITED ARAB EMIRATES
DUBAI
CHINA
BEIJING
SINGAPORE
SINGAPORE
BRAZIL
BELO HORIZONTE (MG)
BOTUCATU (SP)
BRASÍLIA (DF)
CAMPINAS (SP)
GAVIÃO PEIXOTO (SP)
SÃO JOSÉ DOS CAMPOS (SP)
SÃO PAULO (SP)
SOROCABA (SP)
TAUBATÉ (SP)
|G4-56|
VALUES
OUR PEOPLE ARE WHAT MAKE US FLY |
Our people are happy, competent, valued,
fulfilled, and committed to what they do.
People who work as teams and who act
with integrity, coherence, trust in each oth-
er and respect for diversity.
WE ARE HERE TO SERVE OUR CUS-
TOMERS | Customer loyalty is earned by
ensuring their total satisfaction and by
building strong and enduring relationships.
Partnerships are established based on real
commitment and flexibility.
WE STRIVE FOR COMPANY EXCELLENCE |
Company actions are aimed at simplicity, agility,
flexibility and safety, while constantly striving for
improvement and excellence. An entrepreneur-
ial attitude is built on integrated planning, re-
sponsible delegation and disciplined execution.
BOLDNESS AND INNOVATION ARE OUR
HALLMARKS | Company on the techno-
logical forefront, with a capacity for contin-
uous learning; internal transformation and
influencing the markets of its businesses. A
strategic vision and an ability to overcome
challenges with creativity and courage.
GLOBAL PRESENCE IS OUR FRONTIER |
We demonstrate a global presence and
mindset, acting locally to leverage competi-
tiveness and using the best of each location,
envisioning a world without borders, one that
values diversity.
WE BUILD A SUSTAINABLE FUTURE |
We are constantly striving to build the foun-
dation for the company’s longevity, consid-
ering stockholders’ profitability, respect for
quality of life, environment and society.
15
MANAGEMENT STRUCTURE
AND MODEL
Embraer has adopted the most strict stan-
dards of corporate governance and is asso-
ciated with the Brazilian Institute of Corpo-
rate Governance (IBGC, in Portuguese), the
Brazilian Association of Public Companies
(ABRASCA, in Portuguese), Brazilian Institute
of Investor Relations (IBRI, in Portuguese)
and the National Institute of Investors (INI,
in Portuguese). In 2016, the company was
listed on the DJSI for the seventh consec-
utive year, with three years of continual
growth in its overall score. The company
also comprises the ISE and the theoretical
portfolios of the Brazil Index (IBrX, in Por-
tuguese), the Corporate Governance Stock
Index (IGC, in Portuguese), the Stock Index
with Differentiated Tag Along (ITAG, in Por-
tuguese), the Industrial Sector Index (INDX,
in Portuguese), the Bovespa Index Value 2nd
Line (IVBX 2, in Portuguese) and the Brazil
Index 50 (IBrX 50, in Portuguese).
The company’s shares are listed in São
Paulo on the New Market (BM&FBOVES-
PA: EMBR3) and in New York, on the New
York Stock Exchange (NYSE: ERJ), through
the American Depositary Receipts (ADRs)
program, level III. In addition to the New
Market requirements, the company’s by-
laws impose onerous conditions on any
shareholder who might hold shares equal
or superior to 35% of the capital, includ-
ing submission to Public Tender Offer (OPA,
in Portuguese) as well as an authorization
from the Brazilian government, holder of a
special class share, which grants a veto
right in some strategic matters for the com-
pany and the Country. |G4-41|
General Assembly (GA)
• Elects members to and dismisses members
from the Board of Directors and the Fiscal
Board; sets the global compensation for di-
rectors and board members; deliberates on
account approvals and proposals for profit
and dividend allocation; among the other at-
tributions contained in the provisions of the
Brazilian Companies Act.
• The votes of foreign shareholders are limited
to 40% of the votes of Brazilian shareholders.
• Information on voting rights and meetings
are given in detail in the bylaws, available at
https://goo.gl/wFNwsr. |G4-40, G4-42|
Corporate governance structure |G4-34, G4-40, G4-41|
Shareholders
Fiscal Board
Board of Directors
Strategy
Committee
Audit and Risk
Committee
Human Resources
Committee
Compliance
Internal Auditing
Risk and Internal
Controls
Board of Executive Officers
16
Board of Directors (BD)
• Composition: 11 members, one elected
by the Brazilian government (as holder of
the special class share); two are elected
by the company’s employees (one appoint-
ed by the Embraer Employee Investment
Club – CIEMB in Portuguese – and anoth-
er nominated by the company’s non-share-
holder employees); and eight elected by
the other shareholders.
• Two-year term, reelection permitted.
• Eight independent members.
• Eight ordinary meetings per year and extraor-
dinary sessions as necessary – 13 meet-
ings in 2016. |G4-47|
• Defines strategies; elects, supervises and
dismisses members of the Board of Exec-
utive Officers; monitors risks; and estab-
lishes general business policy. |G4-35|
• Carries out annual formal performance
evaluation – of the Board, the board mem-
bers and the Committees – supported by a
specialized external consultant. Members
evaluate themselves, each other, and also
the President and CEO, who, in turn, evalu-
ates the execution of the BD activities every
fiscal year. |G4-44|
• The BD’s Internal Regiment disciplines
its operations and the body’s relationship
with the committees that advise it.
Strategy Committee
•Composition: up to five members.
•Meets every trimester.
• Supports the BD in preparing the Strategic
Plan and the Action Plan; evaluates market
opportunities; and monitors results.
Audit and Risk Committee
•Composition: up to five members.
•Meets every bimester.
• Supports the BD in identifying and managing
risks; oversees the quality of financial state-
ments; recommends and supervises the
external audit firm1; monitors performance
and independence of the internal audit.
Human Resources Committee
•Internally designated as the Committee
of People, Compensation, Organization
and Governance.
•Composition: up to five members.
•Meets every trimester.
• Guides the BD with regards to the election
and dismissal of the members of the Board
of Executive Officers, the establishment of
compensation and human resources poli-
cies, and to the transfer of resources to em-
ployee associations as well as entities for
assistance, recreation and private pension;
guides on matters of governance of the activ-
ities of the BD and of its Committees.
Fiscal Board
• Composition: from three to five members.
• Meets every trimester.
• Examines the financial statements.
• Permanent and independent administration
entity.
Board of Executive Officers
• Composition: from four to 11 members elect-
ed by the BD.
• Two-year terms, with the possibility of re-election.
• Monthly meetings.
• Responsible for daily administration, follow-
ing the guidelines of company bylaws and the
deliberations of the BD and GA.
• Formally responsible for the company’s per-
formance on economic, environmental and
social topics: the Executive Vice President
of Finance and Investor Relations and the
Vice President of People and Sustainability,
respectively. |G4-36|
• The Board of Executive Officers is evaluated
annually with the 360° methodology, where-
as the evaluation of the President and CEO
is the responsibility of the BD. All attributes
and composition of the BD, the Committees,
the Fiscal Board and the Board of Executive
Officers are provided in detail at https://goo.
gl/nfyTAo. |G4-35, G4-38, G4-39|
1. Function exercised in compliance with American law, especially the Sarbanes-Oxley Act.
17
Board of Executive Officers
Michael Amalfitano, José Antonio de Almeida Filippo, John Stephen Slattery, Paulo Cesar de Souza e Silva,
Jackson Medeiros de Faria Schneider, Fabiana Klajner Leschziner, Mauro Kern Junior, Mauricio Rodrigues
Aveiro, Johann Christian Jean Charles Bordais and Nelson Krahenbuhl Salgado (absent)
Compliance |G4-DMA: Fighting corruption, G4-
SO3, G4-SO4|
The Compliance Program aims to ensure
the adoption of the highest standards of
integrity and international good practices
as well as the adherence to the laws of
the countries in which Embraer is present,
above all those that govern anti-corruption
practices and export control. The initiative
is coordinated by the department of Compli-
ance and supervised by the Board of Direc-
tors, the Audit and Risk Committee, and by
the President and CEO.
During the fiscal year, the program inten-
sified its relationship with the group of
more than 200 compliance agents – em-
ployees from various departments, in Bra-
zil and abroad – who act as multipliers of
the culture of ethics and compliance in the
company. Workshops were also held to en-
sure full comprehension of the company’s
policies and how to execute them during
daily tasks. The training plan includes lec-
tures on ethics and integrity administered
by Marjorie Doyle, member of the Society of
Corporate Compliance and Ethics (SCCE).
18
ETHICS AND
INTEGRITY
|G4-DMA: Non-discrimination, G4-DMA: Fighting
corruption, G4-56, G4-SO3|
The Anti-Corruption Policy and
the Code of Ethics and Conduct
ensure the company’s integrity in all
operations. The former establishes
guidelines to prevent conflicts of
interest, deal with donations and
sponsorships, the offering and receiv-
ing of gifts, and outsourcing. It also
establishes mechanisms for investi-
gations to be carried out prior to the
formation of company partnerships.
The Code of Ethics and Conduct
shares norms for responsible busi-
ness management in all operations.
The document is guided by internal
business values and by the Global
Compact of the United Nations, in
addition to complying with anti-cor-
ruption laws, international trade,
and initiatives such as the Interna-
tional Forum on Business Ethical
Conduct (IFBEC) and the Partnering
Against Corruption Initiative of the
World Economic Forum (PACI-WEF).
In 2016, the Board of Directors
approved a revision regarding the
prohibition of contributions to politi-
cal parties. The Code is available at
http://compliance.embraer.com.br/
en/SitePages/Home.aspx and all
board members, members of the
Board of Executive Officers, employ-
ees and third-party collaborators are
trained in the document’s guidelines.
Lectures were attended by more than 500
employees from several departments and
by members of the Board of Directors.
Among the advances in the Compliance
Program, we highlight the development of
the Know Your Customer procedure, which
requires a reputational analysis of potential
clients based on risk factors, and the adop-
tion of a continuous audit system that per-
forms monitoring of critical operations, such
as supplier payments, travel expenses, do-
nations and sponsorships. The intention is
to expand the system, which already serves
the Internal Audit area, to other processes
in the coming years.
In 2010, when potential nonconformities
in certain overseas business transactions
were questioned by U.S. authorities, the
company hired external lawyers to conduct
independent investigations, proactively ex-
panding the initial scope and sharing the
findings with the competent authorities.
These investigations found that the com-
pany was responsible for irregular actions
in four transactions involving 16 aircraft
between 2007 and 2011 in Saudi Arabia,
India, Mozambique and the Dominican Re-
public. On October 24, 2016, Embraer an-
nounced the terms for closing this case,
which had been investigated by U.S. author-
ities – the United States Department of Jus-
tice (DOJ) and the Securities and Exchange
Commission (SEC) – and by Brazilian au-
thorities – Federal Public Prosecutor (MPF)
and the Securities and Exchange Commis-
sion (CVM). As part of the agreements, the
company agreed to contract external and
independent monitoring for three years to
monitor compliance with the terms and will
make a payment of US$205.5 million to
U.S. and Brazilian authorities. Upon timely
fulfilment of the agreements, no charges will
be brought against Embraer (see more infor-
mation in the GRI Indicators).
19
Risk management |G4-2, G4-14, G4-46|
Embraer’s risk management methodology is
backed by the Risk Management Policy and
is segmented into four categories (see Cat-
egorization of Risk). This structure enables
the concentration of efforts for more asser-
tive monitoring, identification and mitigation,
in each situation.
Upper management relies on the support of
the Risk and Internal Controls department
and is also involved, through interviews and
meetings, in the periodic revision of trends
and adversities that might compromise op-
erational performance. The structure is re-
inforced by the Audit and Risk Committee,
which ensures autonomy to the Internal Audit
area as well as to the external audit services.
Helpline
|G4-DMA: Procedure for complaints and claims related to
environmental impacts, G4-DMA: Procedure for complaints
and claims related to labor practices, G4-DMA: Procedure
for complaints and claims related to human rights,
G4-DMA: Procedure for complaints and claims related to
impacts in society, G4-57, G4-58|
The Helpline is a tool to register allega-
tions and concerns related to attitudes
that violate the Code of Ethics and Conduct
and the law. Contacts are consolidated by
an independent company and forwarded to
the Compliance department, in order to as-
sure the confidentiality2 of the person who
files the case, who also receives a protocol
number to monitor its progress online.
Among the issues raised throughout 2016,
nearly 60% were related to conduct devia-
tion, of which 45% were pertinent. Refer-
rals and solutions to the issues included
coaching and conduct monitoring, in ad-
dition to disciplinary measures, such as
warnings, suspensions and dismissals. |G4-
LA16, G4-HR12|
In total, 325 reports were filed during the
year, a 7% increase over 2015. This rise
demonstrates the growing credibility of
the channel and of the awareness among
employees and third-party collaborators re-
garding the conduct expected by the com-
pany. In 2017, the Helpline changed its
name to Helpline – Whistleblowing Chan-
nel, in order to help the public better under-
stand its purpose.
Employees, partners and suppliers may
contact the following telephone numbers:
Brazil: 0800-721-5968
Portugal: 800-180-118
United States: 1-877-900-8779
Singapore: 800-130-2122
China: 400-120-4946
France: 0805-080608
Netherlands: 0800-450-0019
or on the site www.embraerhelpline.com
2. Except in countries whose laws do not allow reports to be made anonymously. In this case,
Embraer abides by local legislation.
20
Categorization of risk |G4-DMA: Economic performance|
STRATEGIES
OPERATIONAL
FINANCIAL
REGULATORY/
LEGAL
RISKS THAT COULD
RESULTING FROM FAILU-
RISKS RELATED TO EX-
REFERS TO COMPLIANCE
IMPACT THE ECONOMIC
RES OR INADEQUACIES
POSURE OF FINANCIAL
WITH LOCAL LAW WHERE
VALUE OF THE BRAND
IN INTERNAL PROCESSES
OPERATIONS. THE COMPANY
EMBRAER OPERATES,
AND THE IMAGE OF
THAT RESULT IN LOSS OF
ADOPTS PROTECTIVE MEA-
INCLUDING REGULATIONS
EMBRAER, WHICH ARE
PRODUCTION, ASSETS, CUS-
SURES AIMED AT INCREA-
OF THE AERONAUTICAL
RELATED TO DECISIONS
TOMERS OR REVENUES.
SING THE GENERATION OF
SECTOR AT EACH STAGE
FROM THE BOARD OF
ALSO INCLUDES EXTERNAL
OPERATING CASH FLOW, THE
OF AIRCRAFT MANUFAC-
EXECUTIVE OFFICERS.
EVENTS, SUCH AS NATURAL
POSITIVE RETURNS ON FI-
TURING, FROM DESIGN TO
CATASTROPHES AND OTHER
NANCIAL TRANSACTIONS AS
POST-SALES SUPPORT.
EVENTS RESULTING FROM
WELL AS FUNDRAISING. THE
CLIMATE CHANGE.
COMPANY’S OPERATIONS
FOLLOW GUIDELINES OF THE
FINANCIAL MANAGEMENT
POLICIES APPROVED BY THE
BOARD OF DIRECTORS.
With respect to climate change, Embraer car-
ries out risk analyses for periods of five years,
considering aspects such as environmental
laws (Brazilian laws and of countries in which
Embraer operates), discussions on carbon
taxation and the European Union Emissions
Trading Scheme (EU ETS). The most recent
analysis, carried out in 2012, did not identify
any vulnerabilities of the company to these
changes. The main factories are located in
Brazil, a country that is not prone to extreme
natural phenomena, and the units abroad are
also at a low risk. Nevertheless, all operations
follow guidelines to minimize adverse effects.
In addition to categorizing risks considered to
be environmental catastrophes, Embraer mon-
itors potential impacts to its operations. Most
of the units are ISO 14001 certified and the
company maintains its goal of implementation
of this certification at 100% of its manufactur-
ing plants and service centers. |G4-EC2|
Comittment to excellence
|G4-DMA: Economic performance|
Embraer establishes a corporate procedure
for identifying relationship guidelines related
to each stakeholder. Based on the Principles
of Excellence in Management and on the
Model of Management Excellence (MEG, in
Portuguese) from the National Quality Foun-
dation (FNQ, in Portuguese), Embraer keeps
the Embraer Business System (SEE, in Portu-
guese), which defines the main guidelines for
the company’s business model. By present-
ing a systematic vision of Embraer, the SEE
makes it possible to understand the main
objectives of management by value streams,
stimulating continuous improvement with fo-
cus on the stakeholders (customers, share-
holders, people, partners, society and the en-
vironment), ensuring that all activities result
in shared values (see more information in
the GRI Indicators). |G4-24, G4-25, G4-26|
21
Results
Culture
Leadership
s
s
e
n
s
u
B
y
c
n
e
c
i
f
f
e
i
i
T
r
a
n
sformation m a n a g
S
t
a
f
f
e nt
m
e
The application of the lean management phi-
losophy is the essence of P3E. Guided by the
optimization of processes and the reduction
of waste, this philosophy provides reduction
in costs as well as gains in productivity and
quality. In 2016, P3E has made it possible
to improve the efficiency of Commercial Avi-
ation, through a project aimed at reducing
production cycles. The program also result-
ed in the qualification of the sales process
for Executive Aviation, which is generating
better operating margins.
Awards and recognition
Brazil’s Most Innovative Company | Award from
the Valor Econômico newspaper, in partnership
with the consulting firm Strategy&. The compa-
ny came in first place in the ranking based on
an evaluation of the revenues invested in inno-
vation, the creation of new products and the
maturity of innovation processes.
2016 Best Companies to Work For in Brazil |
Ranking shared by the consulting firm Great
Place to Work® and by the magazine Época.
This recognition demonstrates the culture of
valuing the internal public and its commit-
ment to the company’s performance.
The Best Companies for Starting your Career |
Survey conducted by the magazine Você S/A
in partnership with the Fundação Instituto de
Administração (FIA) and Companhia de Talen-
tos, which evaluates the satisfaction of young
people starting their careers.
Best Companies for Human Resources |
Award given by the newspaper Valor Econômi-
co and by the consulting firm Aon to compa-
nies that adopt the best practices in human
resources management.
Transparency in Corporate Reports: Evalu-
ating Multinationals in Emerging Markets |
Study conducted by the International Trans-
parency NGO, which analyzed 100 compa-
nies operating in 185 markets and head-
quartered in 15 countries. Among the 12
Brazilian companies analyzed, Embraer was
the only one to be graded above 5 (5.6) on a
scale from zero (least transparent company)
to 10 (most transparent company).
Empresas Mais | Prize given by the newspa-
per O Estado de S. Paulo in partnership with
the Fundação Instituto de Administração
(FIA). Embraer won first place for the category
“Vehicles and Car Parts” and stood out among
the ten leaders in Corporate Governance.
Aviation International News’ 2016 Product
Support Survey | Product support survey con-
ducted annually by the U.S. magazine Aviation
International News (AIN). In 2016, Embraer’s
Executive Aviation reached the top of the rank-
ing with the highest average for all aspects of
the survey (8.4 points out of a total of 10) for
new and used executive jets.
Pro Pilot magazine’s Corporate Aircraft Prod-
uct Support Survey | Executive Aviation also
stood out by taking first place, for the sec-
ond consecutive year, in the customer sup-
port survey for executive aircraft from the
magazine Pro Pilot. Embraer achieved 8.58
points, the highest score among all man-
ufacturers in the 26 years that the survey
has been conducted.
23
Embraer:
value stream
Values by
stakeholder
WIN
CUSTOMERS
DEVELOP
PRODUCTS
CUSTOMERS |
AVAILABILITY,
PERFORMANCE,
COMPETITIVE OFFERING/
SOLUTIONS, SAFETY
>
SHAREHOLDERS |
FINANCIAL RETURN/
FINANCIAL HEALTH
DELIVER
ORDERS
PEOPLE | PROFESSIONAL
AND PERSONAL FULFILLMENT
SERVE
CUSTOMERS
BUSINESS
MANAGEMENT*
PARTNERS |
INTEGRITY AND CONTINUITY
SOCIETY AND THE ENVI-
RONMENT | RESPECT FOR
SOCIETY AND THE ENVIRON-
MENT, WITH GENERATION OF
WEALTH AND WELL-BEING
* In 2016, the company established the Business management value stream, which
joined the previous flows Serving shareholders, Generating value for partners,
Respecting society and the environment and Attracting and retaining people.
One of the fundamental elements of the com-
pany’s management model is the Embraer
Enterprise Excellence Program (P3E), through
which employees are engaged in re-envision-
ing processes for continual improvement of
results. Divided into four pillars, the program
is considered a key element for the evolution
of corporate management.
22
PRODUCTS AND SERVICES
|G4-4, G4-8|
In 2016, Embraer participated in the Farnbor-
ough International Airshow, a global tradition
in the airspace sector that is held in London.
For the first time, the company had each of its
three business units featuring a new product:
the latest generation E190-E2 commercial
jet (see page 25), the KC-390 multi-mission
military freighter (see page 27) and the Leg-
acy 500 executive jet (see page 26). These
products demonstrate a commitment to cut-
ting-edge innovation and technology, as well as
continual portfolio modernization.
In Commercial Aviation’s Customer Satisfac-
tion Survey (CSS), the Index of Spontaneous
General Satisfaction (ISGE, in Portuguese)
reached 84.9% and the Embraer Absolute
Favorability (EAF) index reached 83%, preserv-
ing an improvement trend over the last seven
years and positioning the company in second
place among all sector manufacturers. All sur-
vey topics for 2016 showed an increase in
the absolute favorability index. These results
reflect a commitment to serve customers with
excellence. In this regard, starting in 2017,
the company will operate a business unit fo-
cused on customer support and services (see
more information on the customer satisfaction
survey results in GRI Indicators). |G4-DMA: Labeling
of products and services, G4-PR5|
24
Commercial Aviation
Embraer Commercial Aviation is a global
leader in the manufacturing of jets with up
to 130 seats. In 2016, the company cele-
brated the inaugural flight of the first pro-
totype of the E190-E2 as well as its first
international mission, which marked the
beginning of the certification campaign. The
delivery of the first aircraft is scheduled for
2018. Also, the campaigns for the E195-E2
and E175-E2 models are on track and their
entry into service are scheduled for 2019
and 2021, respectively.
The second generation E-Jets have high per-
formance engines that – together with new
wings, fly-by-wire flight controls and advanc-
es in other systems – result in significant re-
ductions of fuel consumption, maintenance
costs, emissions and external noise. Since
its launch, this product has won 275 firm
orders and a total of 415 options, purchase
rights and letters of intention. |G4-EN7|
Despite the schedule of new products in the
upcoming years, sales performance for the
first generation of E-Jets, mostly the E175
and E190 models, has been on par with
previous years. This reflects customers’
preference for these aircraft and validates
the decision to offer aircraft with 70 to 130
seats, within one family.
The business unit had a significant partici-
pation in the United States with the replace-
ment cycle of the 50-seat fleet. On the other
side of the globe, China is presenting oppor-
tunities stemming from new policies issued
by the Civil Aviation Administration of China
MORE THAN
1,800
COMMERCIAL AIRCRAFT
IN SERVICE WITH OVER
100
AIRLINES AROUND
THE WORLD
THIRD LARGEST
MANUFACTURER
OF COMMERCIAL
JETS IN
THE WORLD
E195-E2
(120 TO 146 SEATS)
E190-E2
(97 TO 114 SEATS)
E175-E2
(80 TO 90 SEATS)
E195
(106 TO 108 SEATS)
E190
(97 TO 114 SEATS)
E175
(76 TO 88 SEATS)
E170
(70 TO 78 SEATS)
FAMILY ERJ 145
(37 TO 50 SEATS)
25
(CAAC). The largest country in East Asia has
been strategic for Embraer, accounting for
80% of the region’s market share of the fleet
of jets with less than 130 seats. Africa also
presents a potential market, not only among
the major airlines, but also with smaller op-
erators that are migrating to E-Jets.
SERVICES AND SUPPORT:
- Maintenance and repair of aircraft
- Revitalization of aircraft
- On-Site stocks (OSS)
- Field support
- Technical support
- Flight operations
- Training
- eSolutions
Learn more at
www.embraercommercialaviation.com
Comfort and verticalization
In 2016, Embraer Aero Seating Technologies (EAST) began operations in Titusville, Florida, where it manufactures commercial
and executive aircraft seats, including those for the first class of the E2. This represents an important step for the company’s
verticalization strategy. This new unit’s products are characterized by quality, ergonomics, and the use of light materials.
Executive Aviation
In 2016, shortly after having completed 10 years of operations,
Embraer Executive Aviation celebrated the delivery of its 1,000th jet, a
Legacy 500. The model was also approved for operations at London
City Airport, one of the most restrictive landing sites in the world.
This year was also marked by investments in the improvement of
the Phenom 100 and Phenom 300 (the world’s best-selling busi-
ness aircraft for the fourth consecutive year) and of the Legacy 450,
Legacy 500 and Legacy 650E. The company also began the testing
campaign for the Phenom 100EV (the new generation of the Phenom
100), which was presented at the main international event for execu-
tive aviation, the National Business Aviation Association (NBAA) Con-
ference and Exhibition, in Orlando, Florida. The new product version
introduces a superior avionics system and more powerful engines,
with better performance in high temperatures and elevated altitude
airports. The new jet is scheduled to enter the market during the first
semester of 2017.
Further globalizing the business unit and to be closer to customers,
Embraer has transferred part of the final assembly of the Legacy
450 and Legacy 500 jets to Melbourne, Florida, where the Phenom
100 and Phenom 300 models are already being produced. |G4-13|
PHENOM 100
(4 TO 7 SEATS)
PHENOM 300
(6 TO 10 SEATS)
LINEAGE 1000E
(13 TO 19 SEATS)
26
EXECUTIVE JETS DELIVERED
1 OUT OF EVERY 5
IN THE WORLD
IS FROM EMBRAER
Throughout the year, sales channels were
also opened with representatives in Mexi-
co, Chile, Japan, and in Europe. In addition
to enhancing Embraer’s global presence,
the initiative aims to develop a global
brand that comprehends the culture and
the uniqueness of buyers in the countries
where relationships are established.
Far beyond executive use
In 2016, Embraer delivered two Phenom
100E to Etihad Flight College, an integral
subsidiary of Etihad Airways, the national
airline of the United Arab Emirates. The
contract provides for the delivery of two more
jets of the same model at the beginning of
2017. The aircraft will be used in the pilot
training academy, created to support the
rapid growth of the airline’s fleet.
The Phenom 100E will also be used to
train pilots in the United Kingdom’s armed
forces. The contract signed with Affinity Flight
Training Services provides for the acquisition
of five aircraft for the Military Flight Training
System (MFTS) program of the United
Kingdom’s Ministry of Defense. The aircraft
model is already being used at flight schools
in the United States, Finland and Australia.
LEGACY 450
(7 TO 9 SEATS)
LEGACY 500
(8 TO 12 SEATS)
SERVICES AND SUPPORT:
- Maintenance and repair of aircraft
(Embraer Executive Care – EEC)
- Aircraft refurbishment
- On-Site Stocks (OSS)
- Performance software
- Reduced Vertical Separation
Minimum (RVSM)
- Integrated diagnostic solution
(Aircraft Health Analysis and
Diagnosis – AHEAD)
LEGACY 650E
(13 TO 14 SEATS)
Learn more at
www.embraerexecutivejets.com/en-us
MORE THAN
1,000 EXECUTIVE JETS
DELIVERED IN MORE THAN
60 COUNTRIES
Defense & Security
Embraer Defense & Security plays a strategic
role in the Brazilian defense system and is the
segment leader in Latin America. Additional-
ly, it is present in over 60 countries. The A-29
Super Tucano turboprop, for instance, was
the business unit’s best-selling model for the
year and already serves 13 air forces in tacti-
cal support missions, counterinsurgency op-
erations, advanced training and surveillance.
Participation in the global market will inten-
sify in the coming years with the launch of
the KC-390, a multi-mission aircraft that sets
new standards in the category. In addition to
delivering more performance and efficiency
(with jet propulsion and reduced operating
costs), the new freighter is capable of per-
forming various missions such as transport-
ing and launching troops and cargo, humani-
tarian aid, in-flight refueling, rescue missions
and wildfire suppression. In 2016, the air-
craft completed major milestones of its flight
test campaign and toured eight countries,
traveling more than 16,300 nautical miles
(nearly 30,200 kilometers), and in 23 days
off base, it demonstrated 100% availability.
Embraer expects to receive the Initial Op-
erational Capability (IOC) declaration by
the end of 2017 and the Final Operational
Clearance (FOC) in 2018. The first deliveries
will also occur in 2018.
In recent years, Defense & Security has in-
vested continuously in portfolio diversification
with air traffic control products and radars
operating under the most challenging climat-
ic and topographic conditions, in addition to
integrated border protection systems. During
the year, the process of consolidating the op-
erations of Savis Tecnologias e Sistemas S.A.
and Bradar Indústria S.A. started. The com-
panies are engaged in the development and
production of radars, as well as border mon-
itoring for remote sensing and protection of
DEFENSE
AND SECURITY
SOLUTIONS IN
MORE
THAN 60
COUNTRIES
27
strategic structures. Both compose the Tepro Consortium, in charge
of implementing the Integrated Border Monitoring System (Sisfron, in
Portuguese) in Brazil. Sisfron comprises a border area of 800 km in the
state of Mato Grosso do Sul. By 2016, 70% of the project had already
been executed.
Visiona Tecnologia Espacial is a joint venture formed between Embraer
and Telebras with the objective of acting in the integration of the sys-
tem of Strategic Defense and Communications Geostationary Satellite
(SGDC, in Portuguese) of the Brazilian Government. Scheduled to be
launched at French Guiana in the first semester of 2017, the SGDC
aims to meet the country’s satellite communications needs, including
the National Program (PNBL) and a broad spectrum of strategies.
The Gripen Design Development Network (GDDN) in Gavião Peixoto,
Brazil, also began operations this year, established for the devel-
opment of the Gripen NG in Brazil, in partnership with the Swedish
company SAAB. Embraer Defense & Security and SAAB will conduct
the full development of the two-seat version of the fighter. Between
2019 and 2024, 36 Gripen NG fighters will be delivered to the Bra-
zilian Air Force (FAB, in Portuguese). |G4-13|
Gold Medal in Defense & Security
In 2016, Rio de Janeiro hosted the Olympic and Paralympic Games, and
nearly 2.5 million people passed through Tom Jobim International Airport.
Embraer Defense & Security companies – Atech, Visiona Tecnologia
Espacial, Savis and Bradar – worked in partnership with the Brazilian
Government and contributed to the above-average safety compliance
indices, as measured by the Ministry of Transportation.
Atech – which incorporated the activities of Embraer Systems in 2016
– offered the Integrated Air Traffic Management System (SIGMA, in
Portuguese), which provides airspace usage planning, and the Advanced Air
Traffic Information Management System and Reports of Operational Interest
(SAGITARIO, in Portuguese), which simplifies airspace management,
previously planned with SIGMA.
Visiona, in partnership with five other companies, carried out a monitoring
pilot project by capturing high and very high resolution images, even under
adverse climatic conditions.
During the football matches held in Brasília, the nation’s capital, with the
support of Savis and Bradar, the army relied on a 4G/LTE (700MHz) mobile
broadband network with a more reliable connection, without oscillations
or interference. In Rio de Janeiro, the company also made available the
Airborne Monitoring Sensor Based on Radio-Frequency Emission (SABER
M60, in Portuguese), which assisted the Brazilian Aerospace Defense
System (SISDABRA, in Portuguese) in protecting the Games’ governmental
and sports facilities.
Agricultural Aviation
Embraer’s Ipanema aircraft is the leader in the Brazilian
agricultural aviation market, with 75% market share and
more than 1,300 units sold. The product has been
manufactured for 50 years, without interruption, focusing on
market trends and customer needs. This is the world’s first
airplane to be certified to fly with 100% ethanol for fuel.
Learn more at www.embraeragricola.com.br
KC-390:
AIRCRAFT DESIGNED AND MANUFACTURED
THE LARGEST
IN BRAZIL
KC-390
A-29
SUPER TUCANO
SPECIAL
MISSIONS
INTELLIGENCE
SURVEILLANCE AND
RECONNAISSANCE
(ISR)
SERVICES AND SUPPORT:
- Maintenance and repair of aircraft
- Modernization of aircraft
- Unmanned aerial vehicles
- Training and Operation Support System (TOSS)
- Security systems/C4I (command, control,
communication, computing and intelligence)
- Air traffic control systems
- Remote sensing
- Aerial surveillance radar
- Satellites
- Development and integration of complex
systems for segments other than aviation
and defense
Learn more at www.embraerds.com
In the coming years, the unit will maintain in-
vestments in these projects in order to grow
sales volume and customer base, increase
financial results, portfolio diversity, and expan-
sion of international presence.
Research, innovation
and development
Being at the forefront of technology is a
fundamental condition for Embraer, whose
strategy is based on continuous learning
and the ability to innovate.
The manufacturing plants house engineer-
ing and product development teams – the
largest of which is in São José dos Cam-
pos, Brazil, which concentrates more than
4,000 professionals in these activities,
240 of whom are in pre-competitive R&D.
In addition, the company maintains three
engineering and technology centers: in Belo
Horizonte (MG, Brazil), Melbourne (Florida,
USA) and in the District of Évora (Portugal).
Embraer protects the intellectual property
generated by its research and development
investments. Throughout the year, consider-
ing the portfolios of invention patents and in-
dustrial design, the company filed 609 patent
applications and had 314 patents granted.
The company also allocates resources for in-
novation through the Aerospace Participation
Investment Fund (FIP, in Portuguese), creat-
ed in 2014 with the Brazilian Development
Bank (BNDES, in Portuguese), the Funding
Authority for Studies and Projects (FINEP, in
Portuguese), and the State of São Paulo de-
velopment agency Desenvolve SP. In 2016, in-
vestments were made in five companies in the
space, defense and cyber security segments,
for which R$44.27 million were allocated.
Incremental innovation, in addition to oc-
curring vigorously within P3E (see page
21), is stimulated among employees by
the Good Idea and the Innova programs.
Good Idea is a program of suggestions for
the development of routine activities with
more efficiency. Throughout its history, the
program has received contributions from
13,000 people and, in 2016, recorded
11,650 implementations of initiatives.
The Innova Program stimulates the culture of innovation and provides
spaces for the consolidation of ideas. The main initiative today is
Green Light, which brings a startup environment into the company by
offering financial support and up to 100% paid time off for employees
to develop their projects. This year, 28 projects were awarded funding
for 76 people. Innova underwent a review and, starting in 2017, the
program also assumes the role of catalyzing exponential technolo-
gies and identifying disruptive opportunities for the business. With
this goal, the company will begin immersion into the innovation hubs
of the Silicon Valley and of Boston, USA.
In addition to these initiatives, employees also meet annually
for the Embraer Seminar on Technology and Innovation (SETI, in
Portuguese), a conference that presents the main technological
advances being developed, which can be strengthened through
integration of the different departments of the company.
Regarding product sustainability, the program for the Integrated De-
velopment of Environmentally Sustainable Products (DIPAS, in Por-
tuguese), coordinated by the Engineering department, leads studies
and actions to insert Design for Environment (DfE) strategies into
the company. Through this initiative, the use of restricted material
is managed with consideration for current and future environmen-
tal legislation, technological alternatives to these materials are
developed, and studies are conducted with respect to the product
life cycle. There is also extensive interaction with the departments
responsible for the creation of technologies aimed at reducing fuel
consumption, carbon dioxide (CO2) emissions, noise, maintenance
costs, and increasing operational efficiency, as well as pilot and
passenger comfort. Since the aircraft’s operation is the longest
stage in its life cycle, exceeding 15 years of activity, reducing fuel
consumption and, consequently, energy, has a direct impact on
the product’s environmental performance. Additionally, fuel costs
are the main expense in aircraft operation, which is why manufac-
turers are always seeking design options that promote efficiency,
thereby meeting both environmental and market requirements.
|G4-DMA: Products and services, G4-EN7, G4-EN27|
United by the common good |G4-EN27|
In 2016, Embraer and Boeing conducted tests on an E170 aircraft,
which received a series of technologies to reduce environmental
impact and increase aircraft efficiency and performance, such as a
system for measuring air data; special paint to lessen the accumulation
of ice and insects; aerodynamic modifications to reduce noise on
takeoff and landing; and a bio-fuel blend, produced in Brazil, with 10%
bio-kerosene and 90% fossil kerosene. This initiative is part of the
partnership between these companies in the context of the Boeing eco-
Demonstrator program, which, without precedent, unites the efforts of
two of the world’s leading aircraft manufacturers for the benefit of the
environment and of the aerospace industry.
Strategic plan guidelines
Commercial Aviation | Solidify Embraer’s leader-
ship position in its segment, expanding the cus-
tomer base, perfecting the E-Jets, and pursuing
excellence in the customer support model.
Executive Aviation | Consolidate Embraer’s
position as one of the world’s most admired
brands of executive jets, with recognition of
customers for the quality of products and service.
Defense & Security | Maintain Embraer’s
leading position in the domestic market
and expand its international performance
through the modernization of products and
support services.
Business Diversification | Develop new business
from the core competencies of the company,
accelerating the adoption of new technologies
and business models.
People, sustainability, organization and
processes | Keep advancing as a global
organization committed both to delivering
customer satisfaction and valuing its people;
a company that grows sustainably and serves
as reference in the market for innovation and
corporate excellence.
INTANGIBLE ASSETS
Annually, during the review cycle of the stra-
tegic plan, Embraer identifies and prioritiz-
es its intangible assets in order to guide
its performance as a company that values
people and is committed to customers and
business excellence.
Brand | Monitored by material published in
the press, presence in the sustainability indi-
ces and external acknowledgments referring
to the management of people and the quality
of service and products (see page 22).
Knowledge | Measured through the ma-
turity index of processes implemented in
the company, as well as by the practices of
knowledge management.
Intellectual property | Measured by num-
ber of patents for inventions and for indus-
trial designs.
People | Evaluated periodically by compe-
tencies (see page 35). Another indicator is
external recognition related to personnel
management (see page 22).
Leadership | 360° evaluations (see page 35).
ECONOMIC/FINANCIAL
PERFORMANCE |G4-DMA: Economic performance|
The year was challenging for Embraer due to
reduced sales in the Defense & Security and
Executive Aviation, in line with other compa-
nies in these segments. The consolidated
results, however, were positive in light of the
good performance of the Commercial Aviation
segment and the reduction of costs and ex-
penses, mainly for the qualification of sales
and margin improvement in Executive Aviation.
In 2016, the company delivered 240 air-
craft, the same volume as the previous year.
Net revenue was US$6,217.5 million, slight-
ly higher than the estimates for the year.
Operating income
and operating margin
Operating income (EBIT) and operating mar-
gin closed 2016 at R$717.8 million and
3.3%, respectively, slightly down when com-
pared to the previous year (operating income
of R$1,103.1 million and operating margin
of 5.4%) due to non-recurring items, such as
provisions related to the termination of the
investigation of non-compliance with U.S.
authorities, and also related to the payment
of benefits offered in the Voluntary Dismiss-
al Program (PDV, in Portuguese). Excluding
these factors, adjusted EBIT was R$1,700.5
million and adjusted EBIT margin was 7.9%,
in line with the company’s annual guidance.
Net income and earnings per share
Adjusted net income, excluding deferred
income and social contribution taxes re-
lated to the impact of exchange variation
on non-monetary assets, and also the
aforementioned provisions, was R$964.9
million. Adjusted earnings per share were
R$1,3179 for the year.
Capital indicators
In 2016, the company had a negative ad-
justed free cash flow of R$1,478.7 million,
lower than the positive free cash flow of
R$1,391.7 million in 2015, mainly due to
lower cash generation from operating activ-
ities, and also due to an increase in invest-
ments in property, plant and equipment as
well as the development of new products.
31
STRATEGIC PLAN |G4-45|
Embraer conducts its planning with a 15-year
horizon, but attentive to external scenarios,
the company promotes annual review cycles
with all administrative and operational de-
partments. The strategic plan is approved
by the Board of Directors, which evaluates it
based on risk management, growth expecta-
tions and stakeholder demands.
The review process carried out in 2016
considered the economic moment faced
in the aerospace and defense segments,
which resulted in a decrease in the number
of sales in the segment, especially in Exec-
utive Aviation, in relation to the last eight
years. In this scenario, Embraer adjusted
costs, expenses and operations – essen-
tial adjustments to uphold the commitment
to the goals set forth.
During the year, the company announced
the closure of Harpia Sistemas S.A and
Harbin Embraer Aircraft Industry Co. joint
venture (HEAI) and, consequently, the ter-
mination of the manufacturing of the Lega-
cy 650 jets in China. |G4-13|
30
DELIVERY OF AIRCRAFT BY UNIT
2014
2015
2016
92
116
COMMERCIAL
AVIATION
EXECUTIVE
JETS
DEFENSE &
SECURITY
20
101
120
COMMERCIAL
AVIATION
EXECUTIVE
JETS
DEFENSE &
SECURITY
15
108
117
NET INCOME BY SEGMENT (%)
TOTAL
241
2015
TOTAL
240
2016
50
COMMERCIAL
AVIATION
56
COMMERCIAL
AVIATION
57
EXECUTIVE
AVIATION
DEFENSE &
SECURITY
29
14
EXECUTIVE
AVIATION
DEFENSE &
SECURITY
28
15
COMMERCIAL
AVIATION
EXECUTIVE
JETS
DEFENSE &
SECURITY
7
TOTAL
215
2014
25
23
COMMERCIAL
AVIATION
EXECUTIVE
AVIATION
DEFENSE &
SECURITY
OTHERS
1
OTHERS
1
(IN BILLIONS OF R$)
TOTAL
14.94
(IN BILLIONS OF R$)
TOTAL
20.30
(IN BILLIONS OF R$)
TOTAL
21.43
MAIN ECONOMIC-FINANCIAL INDICATORS
MILLIONS OF R$*
2016
Variation
2016/2015
2015
2014
Net income
Gross margin
21,435.7
19.9%
Adjusted operating profit1 (EBIT)
1,700.5
Adjusted operating margin
Adjusted EBITDA2
Adjusted EBITDA margin
Net profit
Net margin
Investments3
Debt
Net cash (debt)
Total assets
Net equity
Net debt/equity*
ROA
ROE
ROCE4
Inventory
Inventory turnover*
Asset turnover*
Backlog of firm orders (billions in USD)
Delivery of aircraft (units)
Number of employees
EBIT per employee (in thousands of R$)
Distributed dividends
Profit per share1 (R$)
7.9%
2,844.2
13.3%
585.4
2.7%
12,458.8
12,254.0
(1,873.0)
38,016.7
12,844.9
1.0
1.6%
4.6%
0.2%
8,136.2
2.1
0.6
19.6
240
18,506
91.9
148.6
0.7959
Quantity of shares (thousand)1,5
735,571
6%
20,301.8
14,935.9
1.4 p.p.
14%
0.5 p.p.
16%
1.2 p.p.
142%
1.5 p.p.
(7%)
(11%)
(6,695%)
17%
(14%)
11%
1.1 p.p.
3.0 p.p.
(6.1 p.p.)
(10%)
17%
50%
(13%)
(4%)
19%
26%
141%
1%
18.5%
1,493.7
7.4%
2,450.6
12.1%
241.6
1.2%
13,409.1
13,785.7
28.4
45,566.9
15,008.7
0.9
0.5%
1.6%
6.3%
9,037.9
1.8
0.4
22.5
241
19,373
77.1
117.8
0.3309
730,205
19.8%
1,303.8
8.7%
1,980.7
13.3%
796.1
5.3%
8,731.2
6,662.0
(102.6)
27,653.6
10,265.4
0.6
2.9%
7.8%
11.6%
6,388.9
1.9
0.5
20.9
215
19,167
68.0
214.4
1.0851
733,677
Verified numbers are in compliance with the IFRS international accounting norm.
* Except Debt/Net Equity, Inventory Turnover, Asset Turnover, Profit per Share and Quantity of Shares.
1. The ajusted term is used for amounts calculated excluding provisions relating to non-recurring items that impacted the result of
the period. 2. Represents net profit plus net financial revenue (expenses), income tax and social contributions, depreciation and
amortization, minority shareholding and equity pickup. 3 Values include investments in Development, CAPEX and Shareholding.
4. ROCE = NOPAT/Shares employed with non-monetary items period average. 5. Weighted average of existing basic shares during
the fiscal year, excluding shares acquired by the company and kept in the treasury.
32
Capital market
The shares traded on the BM&FBOVESPA
(EMBR3) closed 2016 quoted at R$16.00.
The American Depositary Receipts (ADRs)
traded in New York (NYSE: ERJ) ended the
year quoted at US$19.25. Embraer’s mar-
ket value was US$3.6 billion at the end of
the year (US$5.5 billion in 2015).
Value Added Statement (VAS)
Added value for the year was R$5,733.2
million, which indicates a small decrease
of 2.94% in relation to what was recorded
for the previous year. For shareholders,
Embraer distributed R$73.6 million
in
interest on capital and R$75.0 million in
dividends, totaling R$148.6 million, with
a payout of 25.4% of net consolidated
profit, R$585.4 million. Profit per share
was R$0.7959. Emphasis should be given
to the distribution of R$3,557.1 million in
value to employees and R$592.8 million
to
federal and municipal governments
in the form of taxes and contributions.
See more information in the financial
statements at: http://ri.embraer.com.br/
listresultados.aspx?idCanal=dwxMd7dcHTw/
kwbNAc2ESQ==&linguagem=en#. |G4-EC1|
Investment level confirmed
In 2016, the credit risk classification
agencies Fitch Ratings and Standard
& Poor’s (S&P) Ratings Services
reiterated the BBB classification for
Embraer. The same rating applies to
securities issued abroad.
Fitch also attributed a national
long-term grade of AAA (BRA) and
S&P removed the negative company
classification in CreditWatch, a sign
that credit ratings will be reevaluated.
BRAZIL
VAS CONSOLIDATED (IN R$ MILLIONS) |G4-EC1|
Revenue
2016
2015
2014
23,416.0
22,360.1
16,343.0
Inputs acquired from third-parties
(17,157.1)
(16,364.1)
(11,144.2)
Gross added value
Depreciation and amortization
Net added value produced by the entity
Received added value being transferred
Distribution of added value
Personnel
Government (taxes, rates and contributions)
Interest and rentals
JCP and dividends
Retained profit/losses from fiscal year
Shares of non-controllers
6,258.9
(1,265.6)
4,993.3
739.9
5,733.2
3,557.1
592.8
991.7
174.0
411.4
6.4
5,996.0
(1,073.4)
4,922.6
605.2
5,527.8
3,342.4
1,251.6
652.2
117.8
123.8
40.0
5,198.8
(676.8)
4,522.0
418.7
4,940.7
2,502.3
1,058.1
553.7
214.3
581.8
30.5
For more information, access the Annual Financial Statement at
http://ri.embraer.com.br/Download.aspx?Arquivo=5QjXT9Bt2eaIHjlqenPhYg==.
33
The company ended the fiscal year with
18,506 employees, 16,007 located in Bra-
zil and 2,499 located abroad. The turnover
rate was 15.03% (see formation of operat-
ing team environment and the hiring rates in
GRI Indicators). |G4-DMA: Employment, G4-10, G4-LA1|
ATTRACTION AND RETENTION
With employees from more than 20 coun-
tries, respecting differences is an Embraer
principle. Embraer also invites the partici-
pation of people with special needs through
the On the Path to Diversity program, in op-
eration since 2012, in partnership with the
Center for the Integration of Businesses and
Schools (CIEE, in Portuguese). |G4-DMA: Diversity
and equility of opportunity, G4-LA12|
In 2016, Embraer started its first trainee
program. Through next year, those selected
will be trained in the classroom and in op-
erations, and will cycle through various de-
partments in order to become familiarized
with challenges inherent to a global com-
pany’s daily routine. In Brazil alone, more
than 11 thousand young people expressed
interest in the first 23 open positions.
34
In order to provide direct contact with uni-
versity students, the company is also es-
tablishing partnerships with educational
institutions, such as the Engineering Spe-
cialization Program (PEE, in Portuguese),
conducted by the Technological Institute of
Aeronautics (ITA, in Portuguese). Students
complete a professional Master’s curricu-
lum for Aeronautical Engineering and, upon
completion of the course, they may be hired
by Embraer. Another initiative is the Embraer
Designer Program (PPE, in Portuguese), in
which participants are technically trained at
the São Paulo College of Technology (FATEC,
in Portuguese), and work as interns within
the company. This year, US$1,278,805.96
and US$626,077.18 were invested in these
programs, respectively.
Retaining committed talent requires the de-
velopment of a work environment that stim-
ulates the upper mobility of positions. With
this in mind, Embraer promotes the Internal
Employment Program (API, in Portuguese),
in which available positions are exclusively
disclosed to employees before being an-
nounced to the market. This makes vertical
mobility (promotion) and horizontal mobility
(changing departments) available for career
planning. In 2016, 36% of positions open
were filled by employees.
DEVELOPMENT AND TRAINING
|G4-DMA: Training and education, G4-DMA: Investments|
Developing talents and preparing them to take
on positions of leadership are fundamental
conditions to ensure the longevity of the busi-
ness. For this purpose, Embraer uses training
programs that cover technical as well as be-
havioral abilities. Throughout the year, more
than 300 courses were offered, mostly online,
with the support of videos, tutorials, games
and infographics.
Training for leaders and future leaders is
planned based on PSE guidelines (see page
21), with emphasis on the Embraer Leader-
ship Development Program, which offers con-
tinued education, improvement for upward mo-
bility in careers and other measures focused
on the Leadership, Business and Results, and
Market axes. The initiative, developed in part-
nership with Dom Cabral Foundation, gradu-
ated two classes in 2015 and four in 2016,
which represents 183 managers trained in
Brazil and abroad.
Employee performance is analyzed periodical-
ly through a skill evaluation. This process was
carried out between April and June. Results
guide the Personal Development Program
(PDI, in Portuguese) and make it possible for
leaders to recommend the most appropriate
courses to each of their employees. Another
performance indicator is the automatic salary
progression, geared to production employees
35
at the beginning of their careers, which pro-
vides for adjusting the compensation of those
who receive positive evaluations. Leaders are
evaluated based on 360° assessments, the
Performance Map and the Calibration Com-
mittee (see performance analysis and career
development in GRI Indicators). |G4-LA11|
Through year end, the company invested
R$14,298,941.00 in 625,416 total hours of
training, which represents 34 hours per em-
ployee (see average number of training hours
per year per employee, as well as the total num-
ber of employee training hours for human rights
policies in GRI Indicators). |G4-LA9, G4-HR2|
INTERNAL COURSES AND PLANNING FOR PRE-RETIREMENT |G4-LA10|
Employees
Value invested (R$)
Grants awarded
2016
90
2015
90
2014
116
115,305.08*
80,000*
190,820
90
90
116
* The 2015 program ended in 2016. The 90 participants of the 2015 program are the same in 2016.
accordance with the current legislation in
each country. |G4-EC3, G4-LA2|
HEALTH AND SAFETY
|G4-DMA: Workplace health and safety|
Concern with employee health and safety
is the focus of the Environmental, Health
and Safety Policy (MASS, in Portuguese),
which aims to ensure a work environment
that complies with labor and environmental
law, in addition to complying with health,
safety and ergonomic requirements.
The initiatives are developed based on
periodic medical exams (for all employees)
in order
trace each department’s
epidemiological profile. With this information
the company developed the Behavioral
Program,
Tensional Reeducation
Training Program (PERTO, in Portuguese)
and the Prevention through Design program.
the
to
COMPENSATION AND BENEFITS
|G4-DMA: Economic performance, G4-DMA: Market pres-
ence, G4-DMA: Employment|
Employees receive fixed compensation,
established in accordance with the com-
plexity of their functions aligned with sala-
ries practiced on the market, and variable
compensation, based on company results
and individual performance (see variation
of the proportion of the lowest salaries,
gender discrimination, compared to local
minimum wage in GRI Indicators). |G4-EC5|
Brazilian employees have a benefits pack-
age and may participate in the Embraer Prev
complementary pension plan. Membership
is voluntary, without restrictions, and time
of service is considered for withdrawal. Con-
tributors define a monthly value of up to 8%
of their salary and the sponsor matches that
amount. Abroad, benefits packages vary in
36
and the quest for efficiency (see page 30),
which included a Voluntary Dismissal Pro-
gram (PDV, in Portuguese). All applications
were evaluated by the company, and the
1,463 people who were awarded received,
in addition to their severance pay, com-
pensation of 40% of the nominal monthly
salary proportional to their time of service
in the company, six months of health and
dental plan coverage, and support through
lectures and career qualification and/or
transition workshops. |G4-LA10|
A satisfaction survey was conducted with
these employees, revealing that 85% of the
respondents expressed their gratitude for
the time they worked at Embraer. This data
shows the respect with which the PDV was
conducted and reaffirms the high satisfac-
tion rates recorded in surveys over the last
seven years.
Every year between 2007 and 2015, Em-
braer conducted an Internal Organizational
Climate Survey, seeking to evaluate the de-
gree of employee satisfaction. Because it is
often above the market average, the compa-
ny opted to improve practices in 2016, with
a biannual engagement survey, which will
take place in 2017, for the first time.
Furthermore, emphasis is given to the Well-
Being program, which aims to encourage the
practice of healthy habits among employees.
The Internal Accident Prevention Com-
mittee (CIPA, in Portuguese) exists since
1971, and it is made up of representatives
elected annually by employees, and an
equal proportion of members are named
by the company (87.26% representation),
with the objective of ensuring safety in the
operating environment. |G4-LA5|
The company is also in dialogue with unions
regarding terms related to employee health
and safety. Clauses negotiated in collective
conventions cover 100% of Brazilian employ-
ees and include: offering Personal Protective
Equipment (PPE); training and education re-
garding this issue; complaint recording sys-
tem; and accident audits and periodic visits
with the participation of employees’ repre-
sentatives. |G4-11, G4-LA8|
Internationally recognized certificates, such
as the OHSAS 18001 (since 2001), accred-
it Embraer operations with regard to adopt-
ed practices. Incident reduction and work
condition improvement goals defined in the
Master Sustainability Plan (see page 7) are
supplemented annually. In addition, safety
indicators are also monitored and analyzed
monthly by the Board of Executive Officers
and by the Board of Directors.
For the year, the total number of accidents
with lost time was 82, and the occupational
sickness rate was 0.22% (see more infor-
mation in GRI Indicators). |G4-LA6|
MANAGEMENT OF
ORGANIZATIONAL CLIMATE
In 2016, various sector companies an-
nounced cost and expense adjustments,
including those related to the operating
environment. In this context, Embraer ap-
proved a plan for operational adjustments
in continuity with the reviews of processes
37
MANAGEMENT OF SUPPLY CHAIN
|G4-DMA: Environmental evaluation of suppliers, G4-DMA:
Evaluation of suppliers in labor practices, G4-DMA: Freedom
of association and collective bargaining, G4-DMA: Child
labor, G4-DMA: Forced or slave labor, G4-DMA: Evaluation of
suppliers in human rights, G4-DMA: Evaluation of suppliers in
societal impacts, G4-12|
Embraer’s supply chain is divided into 1,200
direct suppliers, with which resources are
traded for the manufacturing of products,
and 3,000 indirect suppliers, who support
technical and administrative activities. The
relationship with this public is guided by the
Code of Ethics and Conduct (see page 18)
and goals are established in the Master
Sustainability Plan (see page 7).
Business partners are subject to risk as-
sessments that include monthly monitor-
ing of performance indicators, face-to-face
audits at contractor companies’ plants and
the periodic assessment of environmental
impact surveys. In addition, all contracts
contain clauses regarding human rights
and labor as well as environmental laws.
This year, no significant negative impacts
were identified with regard to labor practic-
es in the supply chain. |G4-EN32, G4-EN33, G4-LA14,
G4-LA15, G4-HR1, G4-HR4, G4-HR5, G4-HR6, G4-HR10, G4-SO9|
38
EVOLUTION
OF PDCA
IN 2016
Increase of 12% for
delivery volume and
increase of 12.4%
for billing.
Part numbers number
2014
2016 +10.1%
High risk suppliers
2014
2016 -83%
Direct employment
2014
2016 -2%
On-time deliveries
2014
2016 +7.7%
(97.2% of deliveries
made on-time)
AERONAUTICS CHAIN
DEVELOPMENT PROGRAM
(PDCA, IN PORTUGUESE)
In partnership with the Brazilian Industrial
Development Agency (ABDI, in Portuguese),
the PDCA seeks to improve all companies
involved in the direct supply of industrial
processes. The initiative was based on the
Excellence Management Model (MEG, in
Portuguese) of the National Quality Foun-
dation (FNQ, in Portuguese) and promoted
significant improvements related to service,
costs, quality and waste reduction.
EXCELLENCE IN
MANAGEMENT PROGRAM
(PEG, IN PORTUGUESE)
An initiative that aims to enable indirect
suppliers to continuously pursue excel-
lence, contributing to increased productivity
and technical improvement.
Companies – selected from risk mapping and
cost reduction opportunities – participate in
courses on lean management philosophy
and receive guidance for kaizen practices
(continuous performance improvement).
EVOLUTION OF
PEG IN 2016
3 classes
trained
17 projects
completed
14 goals
defined
231 measures
identified
32 hours of
training
More than
640 hours of
kaizens
Reduction of
169 days and
9 hours of
processes
Savings of
R$12 million
1
IDENTIFICATION
OF SUPPLIERS
2
THEORETICAL
TRAINING
3
KAIZENS
4
PRESENTATION
OF RESULTS
39
the Environment
SOCIO-ENVIRONMENTAL
RESPONSIBILITY
|G4-DMA: Energy, G4-DMA: Water, G4-DMA: Emissions,
G4-DMA: Effluent and waste|
The MASS Policy also guides Embraer’s En-
vironmental actions, having among its princi-
ples respect for the environment, the pursuit
of eco-efficiency and the management of the
company’s products’ life cycle.
GREENHOUSE GASES (GHG)
Since 2012, Embraer has been a signatory
party of the aerospace industry’s sustain-
ability commitment that establishes two
of the industry’s key goals: carbon neutral
growth by 2020 and a 50% reduction in net
aviation CO2 emissions by 2050, consider-
ing 2005 levels. Each year, Embraer disclos-
es an inventory of GHG emissions certified
by ISO 14064 and audited by Lloyd’s Reg-
ister Quality Assurance (LRQA) (see emis-
sion inventory results in GRI Indicators).
|G4-EN15, G4-EN16, G4-EN17, G4-EN18, G4-EN19, G4-EN20,
G4-EN21|
Energy and water
In 2016, energy consumption
totaled
176,889 MWh, a higher value than in 2015,
mainly due to the increase of installations
and work forces in units of the United States
and Portugal. A savings of 2,498 MWh/year
was also recorded due to initiatives, such
as the modernization of hangar lighting sys-
tems, installation of photovoltaic panels, and
replacement of tubular fluorescent bulbs with
LED lights. This year, the company also hired
a consultancy in order to identify improvement
opportunities related to the reduction of en-
ergy consumption at the Faria Lima, Eugênio
de Melo, Taubaté and ELEB units (see more
about energy consumption and its reductions
in GRI Indicators). |G4-EN3, G4-EN6|
During the fiscal year the company consumed
1,127,226 m³ of water, reusing 5%. |G4-EN8,
G4-EN10|
Effluent and Waste
The company’s units discard their effluents in
the public network, with the exception of Tau-
baté and Gavião Peixoto, Brazil, which discard
effluents in the Boçoroca and Mulada streams,
respectively. This is possible because they
have their own Sewage Treatment Plants (ETE,
in Portuguese), and the Gavião Peixoto ETE
stands out for its removal of nitrogen-based
material (ammonium, nitrite, nitrate) and the
reuse of water. The volume discarded is less
than the supporting capacity of the water bod-
ies and both are outside the Environmental
Protected Areas (APA, in Portuguese) (see
water disposal broken down by treatment and
destination in GRI Indicators). |G4-EN22|
Embraer waste management is carried out by
third-party companies, specialized in process-
ing and decontaminating materials for reuse
or responsible disposal (see total weight of
generated waste and their destinations in GRI
Indicators). |G4-EN23|
Sector partnerships |G4-15, G4-16|
Embraer establishes dialogs with associa-
tions, entities, multilateral organizations and
voluntary initiatives in order to contribute to
the formulation of public policies concerning
the aerospace sector. These relationships are
regulated by guidelines stated in the Code
of Ethics and Conduct and monitored by the
Compliance Program (see page 18).
This year, a topic that involved the sector concerned Brazilian Law No.
258/2016, which instituted the modernization of the Brazilian Aero-
nautics Code. The current document is from 1986, prior to the current
Brazilian Constitution, the Consumer Defense Code, the new Civil Code
and the National Civil Aviation Agency. This is an important debate tak-
ing place in Brazil’s Senate. The Brazilian Aerospace Industries Associ-
ation (AIAB, in Portuguese), in which the company participates on the
Board of Executive Officers, was a member of the expert committee
that analyzed this reform.
Embraer has also been attentive to discussions about easing sanc-
tions on Iran, allowing the sale of commercial aircraft under license
from the Office of Foreign Assets Control (OFAC) of the U.S. Treasury
Department, and on the change of European law to allow the transfer
of data between Brazil and the U.S.
The company also favored setting limits for state support in the de-
velopment and maintenance of aeronautical projects. During the year,
Brazil appealed to the World Trade Organization (WTO) against subsi-
dies granted by the province of Quebec (Canada) for the development
of the Canadian C Series commercial aircraft model, a direct rival of the
E-Jets, which aggravated the price dispute in commercial aviation. This
is a sensitive issue to maintain a level playing field.
After six years of negotiations between governments, environmental
groups and members of the aviation industry, including Embraer, the
International Civil Aviation Organization (ICAO) introduced the first stan-
dard for certification of CO2 emissions in aviation. The standard seeks
to promote the reduction of CO2 emissions from aircraft, encouraging
the integration of fuel-efficient technologies in the design and devel-
opment of aircraft. The CO2 standard will be applied to all new aircraft
models launched after 2020 and also, progressively, to all aircraft in
use starting in 2023, even if designed and launched before 2020.
During the ICAO October meeting, the 191 member countries also
agreed to implement a Carbon Offset and Reduction Scheme for Inter-
national Aviation (CORSIA). The agreement will add to other industry ef-
forts to address climate change (see Embraer’s participation in nation-
al and international associations and organizations in GRI Indicators).
LETTERS, PRINCIPLES AND OTHER EXTERNALLY DEVELOPED INITIATIVES |G4-15|
Name
Date of
adoption
UN Global Compact
Initiative Towards sustAinable
Kerosene for Aviation (ITAKA)
Friends of Rio+20
Commitment to reducing GHG
emissions in aviation (ICAO/ATAG)
Call to Action
Bio-fuel research center
EcoDemonstrator
2008
2012
2012
2012
2014
2015
2016
Scope
Global
Global
Global
Global
Stakeholders involved
Suppliers, manufacturers, transportation com-
panies and organizations from different sectors
Suppliers, manufacturers, transportation com-
panies and aerospace sector organizations
Organizations from various sectors
Suppliers, manufacturers, transportation compa-
nies and organizations from the aerospace sector
Global
Suppliers, manufacturers, transportation com-
panies and organizations from different sectors
Brazil (with world
impact potential)
Technology test for improving
environmental performance of product
Partnership with Boeing
Partnership with Boeing
EMBRAER INSTITUTE |G4-DMA: Indirect economic impacts, G4-DMA: Local communities, G4-EC7, G4-EC8, G4-SO1|
The Embraer Institute for Education and Research, which celebrated 15 years of operations in 2016, was created in order
to manage Embraer’s social private investment in programs focused on education. The initiatives are based on three
fronts of action: education, engagement with society and preserving the memory of the Brazilian aeronautical industry.
During the fiscal year, in order to encourage good practices, Embraer – through the Embraer institute – embraced four
Sustainable Development Goals, established by the United Nations (UN). Learn more at www.institutoembraer.org.br.
15 YEARS
OF SOCIAL
TRANSFORMATION
R$20
MILLION
INVESTED
DURING THE
FISCAL YEAR
ENGAGEMENT WITH SOCIETY
Social Partnership | The Social Partnership Program sup-
ports educational projects structured by civil organizations.
In building its thematic agenda, the Embraer Institute pro-
motes public consultations based on the Sustainable Devel-
opment Objectives (SDGs) agenda.
Volunteering | The Embraer Institute coordinates initiatives
focused on disseminating a volunteering culture among em-
ployees of the company, and establishes partnerships with
public and private entities aiming to intensify volunteerism in
activities that comply with Embraer values.
MORE THAN
150
PROJECTS
SUPPORTED
SINCE
2004
793
EMPLOYEES
ENGAGED
2016
IN
PRESERVING MEMORY
Embraer Historical Center | Created in 2006 and incorporated into the
Institute in 2014, it is responsible for rescuing, preserving and disclosing
the memory of the Brazilian aeronautical industry in four exhibition spaces
– São José dos Campos (SP), Gavião Peixoto (SP), Villepinte (France) and
Fort Lauderdale (EUA) – and on the website http://institutoembraer.org.br/
centrohistoricoembraer. In 2016, the virtual exhibition Women in Aviation
was held, in line with the fifth UN Sustainable Development Objective
(Gender Equality). See https://goo.gl/EQWdyL.
Guided tours | Launched in 2015 as an experiment, the initiative opens
the São José dos Campos unit’s doors to the community. In addition
to bringing the unit closer to the community, the program rescues the
company’s history and involves employees who work as guides during
the visits.
A Flight for Embraer | At the end of 2015 and at the beginning of 2016,
the Catavento Cultural Museum, in São Paulo, held a thematic exhibition
on Aviation Technology, which had an Embraer Institute collection, including
a life size passenger cabin.
119,000
VISITED THE
A FLIGHT
FOR EMBRAER
EXHIBITION
AT THE CATAVENTO
CULTURAL MUSEUM
42
EDUCATION
Embraer High Schools | Embraer’s Juarez Wanderley
and Casimiro Montenegro Filho High Schools, located
in São José dos Campos and Botucatu, respectively,
offer three years of education (a full high school term)
at no cost, for students from the public school sys-
tem. In addition to the full scholarship, Embraer High
Schools also provide uniforms, teaching materials, food
and transportation. Their applied educational method
focuses on academic excellence and professional ori-
entation, through socio-environmental and cultural ed-
ucation, and is a key factor in achieving high approval
rates in public and private university entrance exams.
For 2016, the two high schools were listed among
the best schools in Brazil, based on the results of the
National Secondary Education Exam (ENEM, in Portu-
guese). Juarez Wanderley College also won the first four
positions in the Intelligence Olympics, organized by the
Multiple Intelligences Assessment (AMI, in Portuguese)
and by the Commercial and Industrial Association (ACI,
in Portuguese) in São José dos Campos.
Scholarship Fund | Program for alumni of the Embraer
High Schools who had excellent academic perfor-
mance, financial limitations and who have been ac-
cepted into public or private universities with full tuition
waiver. The fund is made up of donations from individ-
uals, among them employees, as well as companies
and organizations. Supporting the sustainability of the
program, former students also become donors, once
they find a place in the job market, and a grace period
comes to an end. In 2016, the initiative benefited 271
university students.
Entrepreneurship | The Embraer Institute carries out
initiatives in order to stimulate the entrepreneurial
spirit in students of the public system in the areas
where the company is present. Noteworthy, among
the highlights of 2016, are the various awards re-
ceived by the MiniCompany Program, coordinated in
partnership with the Junior Achievement organization
of the State of São Paulo, including the Best Mini-
Company award in the Social Responsibility category.
i e d ade
e m e n t
c
o
o
V
o
d
g
a
sformatio n
ção social
ento co m a s
unity e n g
m
m
m
aja
o
C
g
n
E
a
n
m
a
r
r
o
t
f
l
s
a
n
c
a
o
i
r
S
T
P
r
e
M
Parceria
Social
Partnership
Social
a
m
G uid e d
Pro gra
Visita s
to urs
G uia d a s
s
e
e
m
r
v
o
a
r
r
e
o
a
r
t
r
n
b
e
m
C
E
l
o
a
c
c
i
i
r
r
ó
o
t
t
s
s
i
i
H
H
r
e
r
e
a
t
r
n
b
e
m
C
E
ç
ã
y preservation
o da memór i a
l
a
u
i
r
n
a
t
t
e
n
e
u
r
i
l
n
o
g
V
High Schools
Embraer
Colégios
Embraer
E
E
d
d
u
u
c
c
Scholarship
Fundos
de Bolsas
fund
i
t
a
a
ç
ã
o
o
n
E
E
m
n
p
t
r
r
e
e
e
p
r
n
e
d
n
e
e
d
u
o
ri
ri
s
s
m
m
o
G
G
e
n
e
e
r
a
r
a
ç
ã
tio
o de valor
n of value
271
UNIVERSITY
STUDENTS
BENEFITTED
IN THE YEAR
2,840
STUDENTS
GRADUATED
SINCE THE CREATION
OF THE INSTITUTE
MORE
THAN 80%
GRADUATING STUDENTS
APPROVED IN
PUBLIC AND
PRIVATE UNIVERSITIES
43
GRI INDICATORS
Location of the organization’s headquarters |G4-5|
Avenida Brigadeiro Faria Lima, 2,170 – Putim, São José dos Campos – SP.
Employee profile |G4-10|
BY FUNCTIONAL LEVEL
Board of Executive Officers1
Manager
Supervisor
Pilot
Engineer
Professional
Technical
Administrative
Operational
20163
Women
9
45
82
0
547
1,036
332
319
540
Men
82
269
638
93
3,603
1,487
2,912
435
6,077
20153
Women
9
40
75
0
586
965
300
377
599
Men
73
235
678
102
3,783
1,300
3,168
480
6,603
20142
Women
8
43
81
0
576
961
277
386
589
Men
79
234
726
106
3,708
1,271
3,013
490
6,619
Total by gender
15,596
2,910
16,422
2,951
16,246
2,921
Total
BY TYPE OF CONTRACT
Determined time
Undetermined time
Total by gender
Total
BY WORK DAY
Full work day
Half period
Total by gender
Total
BY COUNTRY
Brazil
China
USA
France
Netherlands
Ireland
Portugal
Singapore
18,506
20163
18,506
20163
18,506
20163
Men
306
15,290
15,596
Men
15,580
16
15,596
Men
13,540
46
1,479
93
75
0
324
39
Women
70
2,840
2,910
Women
2,905
5
2,910
Women
2,467
21
284
19
19
0
83
17
19,373
20153
19,373
20153
19,373
20153
Men
217
16,205
16,422
Men
16,403
19
16,422
Men
14,488
48
1,406
89
56
0
294
41
Women
89
2,862
2,951
Women
2,945
6
2,951
Women
2,519
26
262
19
10
1
97
17
19,167
20142
19,167
20142
19,167
20142
Men
226
16,020
16,246
Men
16,219
27
16,246
Men
14,571
43
1,189
187
4
2
209
41
Women
67
2,854
2,921
Women
2,916
5
2,921
Women
2,523
27
221
75
1
1
57
16
Total by gender
15,596
2,910
16,422
2,951
16,246
2,921
Total
18,506
19,373
19,167
44
BY WORKFORCE
Direct employees
Third-parties4
Total
20163
20153
2014
Men
13,108
Women
2,328
Men
14,488
Women
2,519
Men
16,246
Women
2,921
4,355
19,791
3,935
20,942
0
19,167
1. Includes director-president, vice-presidents and executive officers. 2. In previous years, the count for Brazil was notated by region in the country. Starting in 2015, the counts
came to be notated by country. 3. Numbers referring to sites in Brazil. 4. The system used for handling third-parties does not allow for a breakdown by gender.
Participation in national or international associations and organizations1 |G4-16|
NATIONAL AGENDA
Seat on the
Board
of Governance
Participation
in projects/
commissions
Strategic
participation
Is there resource
allocation beyond
the registration/
association fee?
Brazilian Association of Public Companies (Abrasca,
in Portuguese)
Brazilian Association of Industries for Defense and
Security Materials (ABIMDE, in Portuguese)
Brazilian Association of General Aviation
(ABAG, in Portuguese)
Brazilian Association of Mechanical
Sciences (ABCM, in Portuguese)
Aerospace Industries Association
of Brazil (AIAB, in Portuguese)
Foreign Trade Association of Brazil
(AEB, in Portuguese)
Technology Park of São José
dos Campos Association
National Association for Research
and Development of Innovative
Companies (ANPEI, in Portuguese)
Center for Competitiveness and Innovation of the Eastern
Region of the State of São Paulo (CECOMPI, in Portuguese)
National Confederation of Industry
(CNI, in Portuguese)2
Federation of Industries of the State
of São Paulo (Fiesp, in Portuguese)
Brazilian Institute of Corporate
Governance (IBGC, in Portuguese)
Industrial Enterprise Development Institute
(IEDI, in Portuguese)
Brazilian National Confederation of Industry
(MEI, in Portuguese)
INTERNATIONAL AGENDA
Aerospace Industries
Association (AIA)
Air Transport Action
Group (ATAG)
Aviation Working Group (AWG)
Yes
Yes
Yes
No
Yes
Yes
No
Yes
Yes
No
Yes
No
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
No
No
No
No
No
No
No
No
Seat on the
Board
of Governance
Participation in
projects/com-
missions
Strategic partici-
pation
Is there resource
allocation beyond
the registration/
association fee?
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
Brazil Industries Coalition (BIC)
American Chamber of
Commerce (Amcham)
Portuguese Chamber of Commerce
in Brazil (CPCB, in Portuguese)
Brazilian Center for International
Relations (CEBRI, in Portuguese)
Brazil-China Corporate Council
(CEBC, in Portuguese)
Brazil-United States Corporate
Council (CEBEU, in Portuguese)
European Policy Center (EPC)
Global Compact Foundation
Foreign Trade Study Center
Foundation (Funcex, in Portuguese)
General Aviation Manufacturers
Association (Gama)
International Aerospace
Environmental Group (Iaeg)
National Aeronautic
Association (NAA)
United States Chamber of Commerce
(US Chamber)
World Economic Forum (WEF)
Yes
Yes
Yes
Yes
Yes
Yes
No
No
Yes
No
No
Yes
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
No
No
No
No
No
No
No
No
1. The list does not present the totality of associations in which Embraer participates. However, the most strategic ones were listed. 2. Associative participation
through the Fiesp system.
Limit of material aspect inside and outside of the organization
Material matters
Material aspects
|G4-19|
Indicators
Economic performance
Market presence
Indirect economic impacts
Energy
Water
G4-EC1
G4-EC2
G4-EC3
G4-EC5
G4-EC7
G4-EC8
G4-EN3
G4-EN5
G4-EN6
G4-EN7
G4-EN8
G4-EN9
G4-EN10
Export control
Attraction, development and
retention of human resources
Attraction, development and
retention of human resources
Local socio-economic
development
Management of natural
resources and waste
Sustainable new business,
products and services
Research, development
and innovation
Management of natural
resources and waste
46
Aspect limit in
the organization
|G4-20, G4-21|
Inside
Outside
X
X
X
X
X
X
X
X
|G4-19|
|G4-20, G4-21|
Atmospheric emissions
Emissions
Management of natural
resources and waste
Management of
chemical substances
Management of
chemical substances
Effluent and waste
Management of the product’s
environmental life cycle
Products and services
Management of supply chain
Transparency and
communication
Attraction, development and
retention of human resources
Human and labor rights
Environmental evaluation
of suppliers
System for complaints and
claims relating to
environmental impacts
Employment
Employee health and safety
Work health and safety
Attraction, development and
retention of human resources
Management of supply chain
Transparency and
communication
Training and education
Diversity and equality
of opportunity
Evaluation of suppliers for
labor practices
System for complaints
and claims relating to
labor practices
Investments
Human and labor rights
No discrimination
Freedom of association and
collective bargaining
Child labor
Management of supply chain
Forced or slave labor
Evaluation of suppliers for
human rights
Transparency and communication
System for complaints
Local socio-economic
development
Local communities
G4-EN15
G4-EN16
G4-EN17
G4-EN18
G4-EN19
G4-EN20
G4-EN21
G4-EN22
G4-EN23
G4-EN24
G4-EN27
G4-EN32
G4-EN33
G4-EN34
G4-LA1
G4-LA2
G4-LA5
G4-LA6
G4-LA7
G4-LA8
G4-LA9
G4-LA10
G4-LA11
G4-LA12
G4-LA14
G4-LA15
G4-LA16
G4-HR1
G4-HR2
G4-HR3
G4-HR4
G4-HR5
G4-HR6
G4-HR10
G4-HR12
G4-SO1
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
47
|G4-19|
|G4-20, G4-21|
|G4-26, G4-37|
Ethics
Fighting corruption
Management of supply chain
Transparency and
communication
Evaluation of suppliers for
societal impacts
System for complaints
and claims relating to
societal impacts
Product safety
Labeling products and services
G4-SO3
G4-SO4
G4-SO5
G4-SO9
G4-SO11
G4-PR5
X
X
X
X
X
X
X
X
Date of the most recent report |G4-29|
The previous version of this annual report was published in April 2016, referring to the fiscal year of 2015.
Approach and frequency of stakeholder engagement and consultation processes between
stakeholders and the highest governance body in relation to economic, environmental and
social topics |G4-26, G4-37|
Stakeholders
Approach
Responsible parties
Frequency
Embraer Operators Conference
– EOC and Embraer Executive
Operators Conference – EEOC
for discussion of matters rela-
ting to aircraft (maintenance,
operation and field items).
Customer Support
Annual
Customers
Kaizens to improve Embraer’s
interaction with customers.
Customer Support
Continuous/Depending
on demands
Studies to develop or
improve products.
Market Intelligence, Customer
Support and Engineering
Continuous/Depending
on demands
Customer satisfaction surveys.
Customer Support
Annual
Aeronautical fairs for presen-
ting and selling products.
Embraer Suppliers Conference
(ESC) for strategic alignment
and awarding the year’s
best suppliers.
Supply Chain Alignment (SCA)
and Supply Chain Quality Alig-
nment (SQA) for strategic and
operational alignment.
Executive Meeting for following
action plan indicators.
Customer Support Meeting
(CSM) dedicated to post-sales
for discussing technical and
commercial matters.
Program Review Meeting (PRM)
for technical/operational
surveillance of development
activities for series and post
sales programs.
Sales
In accordance
with global calendar
Executive-Administration
Annual
Program managers and
directors and department of
Supplier Quality
Annual
Executive-Administration
Quarterly
Executive-Administration
Quarterly
Program directors
and managers
Biannual
Suppliers
48
Shareholder assembly.
Legal Vice-President
In accordance with the
rules for calling a meeting
detailed in the Bylaws
Shareholders
Investor Relations Site.
Administration of
Investor Relations
Embraer Day for presenting re-
sults and relevant information.
Administration of
Investor Relations
Meetings with the
Ministry of Labor.
Management of Workplace Safety,
Occupational Health
and Environment
Meetings with CETESB, Sani-
tary Surveillance, Federal/Sta-
te Police, Ministry of Defense,
mayors, municipal secretaries
of education, class
entities and Brazilian
business associations.
Participation in international
forums and organizations
(WEF, ATAG, IATA, ICAO, UNDP,
Global Compact, OMC, AWG,
among others).
Management of Corporate
Sustainability and Management
of Workplace Safety, Occupational
Health and Environment
Administration of External
Relations and Managing
Corporate Sustainability
Society
Meetings with federal and state
governments, mayors' administra-
tions and governmental agencies.
Administration of External
Relations and Managing
Corporate Sustainability
Continuous
Biannual
Bimonthly
Continuous
Continuous
Continuous
Blog of the Director-President.
Presidency
Continuous
Cycle of Values – events bet-
ween leaders and employees
for sharing Embraer Values.
Administration of Brand
Management and Internal
Communications
Bimonthly
Leaders and employees
At least each trimester
Meetings to follow up on PA/
PMS and alignment
each semester.
Climate survey and meetings
between leaders and employees.
Leaders
Helpline.
Compliance Board
Message to managers.
Administration of Brand Manage-
ment and Internal Communications
Continuous
Continuous
Continuous
Measurements taken to develop and improve awareness of the highest governing body
regarding economic, environmental and social topics |G4-43|
Measurements
Body
Economic
Environmental
Social
Lecture on shareholder activism
Board of Directors
Presentation on environmental matters
at company sites
Board of Directors
Presentation from the Embraer Institute of
Education and Research (IEEP, in Portuguese)
Annual compliance training
Presentation from the Committee
of Financial Management
Presentation of work from the Committee
of Control and Environmental Risks
(CCRA, in Portuguese)
Presentation of work from Committee
of Sustainability
Presentation from the Committee of Ethics
Anti-trust training
Board of Directors
Board of Directors
Board of
Executive Officers
Board of
Executive Officers
Board of
Executive Officers
Board of
Executive Officers
Board of
Executive Officers
X
X
X
X
X
X
X
X
X
X
Highest level body or position that formally analyzes and approves the sustainability report for the
organization and ensures that all material matters are covered |G4-48|
President-Director.
Process adopted to communicate critical concerns to the highest level governing body |G4-49|
The company’s Board of Executive Officers and Board of Directors’ Advisory Committees communicate critical company
concerns where BD ordinary meetings take place or, if necessary, they request Extraordinary meetings.
Variation of the proportion of the lowest wage, separated by gender, compared to the local minimum
wage at important operational sites |G4-EC5|
Country
Gender
Reference
Ratio (%)
Brazil (BRL)1
United States (USD)2
Portugal (EUR)3
France (EUR)4
2014
2015
2016
Men
1,337.60
1,339.80
1,502.80
Women
1,337.60
1,470.55
1,470.55
Men
1,733.33
1,733.33
2,142.40
Women
2,080.00
2,080.00
2,102.53
Men
700.00
700.00
Women
700.00
700.00
700.00
700.00
Men
1,891.99
1,891.99
1,851.39
Women
1,891.99
1,513.59
1,556.80
880.00
1,395.33
530.00
1,466.62
171
167
154
151
132
132
126
106
1. Minimum wage in Brazil. The salary floor follows of the union category. 2. Minimum wage in the state of Florida. 3. Minimum wage in Portugal. 4. Minimum
wage in France. Important operational sites are those in which Embraer is present have that have a significant quantity of staff. The following countries’ offices
were not considered: Singapore, China and Netherlands.
Consumption of electrical energy by unit (MWh) |G4-EN3|
2014
64,210
17,444
Unavailable
14,710
14,210
Unavailable
10,775
Unavailable
4,830
Unavailable
Unavailable
Unavailable
2015
65,864
17,291
14,218
13,707
13,443
12,929
10,959
8,147
4,031
3,626
2,180
900
2016
62,472
15,683
16,021
15,320
15,601
13,326
10,987
13,299
4,264
4,853
3,232
925
Faria Lima
Botucatu
Évora
Eugênio de Melo
Gavião Peixoto
OGMA
ELEB
Melbourne
Taubaté
Nashville
Fort Lauderdale
Sorocaba
50
Harbin*
Belo Horizonte
Beijing
São Paulo
Total
Unavailable
Unavailable
Unavailable
Unavailable
126,179
830
636
179
Unavailable
168,940
0
612
183
111
176,889
* In 2016, electrical energy consumed at the São Paulo office was included and the Harbin unit, in China, was excluded, due to closing of operations.
Consumption of energy within the organization |G4-EN3|
Type of fuel (non renewable)
Total consumption (MWh)
Diesel
Gasoline
Liquefied Petroleum Gas (LPG)
Natural gas
Aviation kerosene
Total
736
319
12,087
31,805
102,113
147,060
Consumed non-renewable fuel values include the consumption in sites certified in ISO 14064 – Part 1 referring
to Scope 1 (SKJ, EGM, TTE, ELEB, BOT, GPX, BHZ, SOD and SPO). Therefore, consumption referring to Embraer
sites abroad were not considered.
Type of fuel (renewable)
Total consumption (MWh)
Hydrous ethanol
Total
83
83
Consumed renewable fuel values include the consumption in sites certified in ISO 14064 – Part 1 referring to
Scope 1 (SKJ, EGM, TTE, ELEB, BOT, GPX, BHZ, SOD and SPO). Therefore, consumption referring to Embraer sites
abroad were not considered.
Quantities of acquired heating, refrigeration and steam not significant.
Energetic intensity |G4-EN5|
The indicator of energetic intensity covers electrical energy consumed during the year for the manufacturing of
aircraft. Due to the various models of plane manufactured by Embraer, the term equivalent aircraft was created, a
number calculated from the plane model and the work hours required for its manufacture. In 2016, 249 equivalent
aircraft were produced. Considering the consumption of electrical energy in manufacturing plants in Brazil in 2016,
the energetic intensity indicator was 500 MWh for each equivalent aircraft produced, a value 10% lower when com-
pared to that in 2015. With relation to the performance of all sites reported for this indicator, the energetic intensity
of Embraer S.A. sites was 711 MWh per equivalent aircraft, a value 4% lower than that reached in 2015.
51
Reduction of energy consumption |G4-EN6|
Total of water removed by source |G4-EN8|
Project title
Economy in the year (kWh)
Water sources
Unit
Gavião Peixoto
Faria Lima
Eugênio de Melo
Botucatu
Total
Modernization of the hangar illumination system – G-1340
Modernization of the hangar illumination system – G-1560
Modernization of the hangar illumination system – G-1350
Modernization of the hangar illumination system – G-1360
Modernization of the hangar illumination system – G-1362
Modernization of the hangar illumination system – G-1550
Installation of photovoltaic panels
Patio F 51/57
Patio F 231
LED lighting – F-30/2
Hangar F30/1
LED lighting – F-51/57
LED lighting – external (layout)
LED lighting – F-101
LED lighting – F-113
LED lighting – F-77
LED lighting – F-50
LED lighting – F-66
LED lighting – E-501
LED lighting – external areas – layout
Replacement of tubular fluorescent lights with LED lights –
B01 and B12
Installation of photovoltaic lighting posts
Project of compressed gas economy
173,184.00
69,264.00
221,400.00
173,952.00
112,788.00
304,920.00
3,352.00
5,280.00
35,868.00
75,200.00
41,040.00
15,010.00
136,800.00
26,400.00
116,160.00
80,256.00
60,192.00
170,544.00
394,896.00
31,200.00
9,348.00
6,480.00
235,247
2,498,780.61
For lighting projects, the avoided consumption was estimated using the old and new lighting powers and the
operational time in each hangar where the exchange took place.
For the photovoltaic energy generation project the avoided energy was estimated based on the power of installed
photovoltaic panels and the solar incidence in the region.
For the compressed gas economy project in Botucatu, gas economy was estimated based on energy used before
and after implementation thereof, in which habit changes were encouraged, such as turning off compressors in
the early morning and on weekends.
52
Quantity (m³)
2014
2015
2016
647,616
616,545
563,845
-
-
60,315
Underground water
Effluent from other organizations
Municipal supply of water or other water supplying companies
115,737
344,268
503,066
Total volume of removed water
763,353
960,813
1,127,226
The SJK, EGM and GPX sites are supplied with underground water captured in the area of the company. The ELEB,
Taubaté, Botucatu, Belo Horizonte and Sorocaba sites in Brazil and the Évora, OGMA, Fort Lauderdale, Nashville,
Melbourne and Beijing sites abroad use municipally supplied water or other water supplying companies. As of
2016, we began to report the volume of effluent treated for reuse from the water company of the municipality of
Melbourne. The Harbin unit ceased operations at the start of 2016 and information referring to this unit is not
included in the report. Values reported were obtained using direct measurements.
Water sources significantly effected by removal of water |G4-EN9|
We add that there are no sources significantly effected by our operations.
Total percentage and volume of recycled and reused water |G4-EN10|
Site
SJK
EGM
TTE
ELEB
GPX
BOT
EVO
FLL
BNA
MLB
BJS
BHZ
OGMA
SOD
Embraer Brasil
Embraer S.A.
Total of used water (m³)
Total of recycled and
reused water (m³)
Percentage of
recycled water
2016
362,813
143,113
26,464
56,106
69,000
89,316
82,617
29,560
1,980
71,283
2,213
4,760
239,078
2,050
753,622
1,180,353
5,280
0
7,454
29,952
5,801
0
1,800
0
0
0
0
0
2,840
0
48,487
53,127
1
0
28
53
8
0
2
0
0
0
0
0
1
0
6
5
53
The values of recycled and reused water were estimated according to the consumption of the equipment that
uses recycled and reused water, as well as according to the volume of the reservoir in which it is stored.
Biogenic Emissions (tCO2e) Scope 1
The total amount of used water is the sum of water consumed (G4-EN8) and recycled and reused water.
G4-DMA: Emissions
Embraer uses the approach of operational control, including operational unit emissions and activities which the
company controls in the inventory. The reported greenhouse gas emissions cover the SJK, EGM, TTE, ELEB, GPX,
BOT, BHZ, SOD and SPO sites. The emission factors used in the calculations are attached. Referenced used were:
•
IPCC 2006, 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Prepared by the National Gre-
enhouse Gas Inventories Programme, Eggleston H.S., Buendia L., Miwa K., Ngara T. and Tanabe K. (eds).
Published: IGES, Japan. www.ipcc-nggip.iges.or.jp/public/2006gl.
• National Energetic Balance 2015: Base year 2014/Energy Research Company – Rio de Janeiro: EPE, 2015.
https://ben.epe.gov.br/downloads/Relatorio_Final_BEN_2015.pdf.
• GHG Protocol Brazilian Program. Calculation Tool, 2016 Cycle. www.ghgprotocolbrasil.com.br/ferramenta-de-calculo.
• Ministry of Science, Technology and Innovation (MCTI, in Portuguese). Factors of the CO2 emissions from
electrical energy generation from Brazil’s National Interconnected System. Accessed on: Jan. 30, 2016.
http://www.mctic.gov.br/mctic/opencms/textogeral/emissao_corporativos.html.
Direct emission of greenhouse gases (GHG) (Scope 1) |G4-EN15|
Scope 1 Emissions
GHG
CO2 (tCO2e)
CH4 (tCO2e)
N2O (tCO2e)
HFC (tCO2e)
PFC (tCO2e)
SF6 (tCO2e)
Total
2014
27,396.26
399.19
166.86
2,217.17
0
0
2015
28,164.26
11.68
171.43
3,053.97
0
0
2016
35,704.63
10.79
239.76
2,105.83
0
0
30,179.48
31,401.34
38,061.01
54
2014
84.8
2015
64.81
2016
48.11
Indirect emission of greenhouse gases (GHG) resulting from the acquisition of energy (Scope 2)
|G4-EN16|
Scope 2 Emissions
GHG
CO2 (tCO2e)
CH4 (tCO2e)
N2O (tCO2e)
HFC (tCO2e)
PFC (tCO2e)
SF6 (tCO2e)
Total
Biogenic Emissions Scope 2
2014
0
2014
16,905.26
2015
15,699.16
2016
10,217.33
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
16,905.26
15,699.16
10,217.33
2015
0
2016
0
Other indirect emissions of greenhouse gases (GHG) (Scope 3) |G4-EN17|
Scope 3 Emissions
GHG
CO2 (tCO2e)
CH4 (tCO2e)
N2O (tCO2e)
HFC (tCO2e)
PFC (tCO2e)
SF6 (tCO2e)
Total
2014
29,847.30
1,776.41
250.08
0
0
0
2015
31,979.47
1,862.90
278.61
0
0
0
2016
26,185.27
1,250.07
381.18
0
0
0
31,873.78
34,120.98
27,816.52
Biogenic Emissions Scope 3 (tCO2e)
2014
1,156.98
2015
1,086.24
2016
1,348.55
55
Intensity of emissions of greenhouse gases (GHG) |G4-EN18|
Embraer calculates its greenhouse gas intensity indicator by adding the emissions from Scopes 1 and 2 accor-
ding to the company’s net revenue. The company’s reduction goal is 3% during 2017, using 2013 as a reference.
Considered in this indicator: Scope 1 emissions referring to: fugitive emissions; burning of different aeronauti-
cal kerosene fuels (QAV, in Portuguese); and burning of QAV in production flights (current portfolio aircraft). Not
considered: development flight emissions and certification of new products, as well as the Defense and Security
Business Unit’s aircraft. In this way, the 2016 indicator showed 19% reduction with relation to the year of 2013.
Reduction of emissions of greenhouse gas (GHG) |G4-EN19|
Reduction of emissions of greenhouse gas (GHG)
Weight (tCO2e)
Redesigning processes – Scope 1
Conversion and modernization of equipment – Scope 2
Conversion and modernization of equipment – Scope 1
Changes in the behavior of employees
Total emissions avoided
2014
2015
2016
77
47
120
22
266
98
239
0
0
337
0
185
0
19
204
Persistent Organic Pollutants (POP)
Volatile Organic Compounds (VOC)
Particulate Matter (PM)
0
27
36
0
20
26
0
7
19
Reported values refer to manufacturing plants SJK, EGM, Eleb, GPX and BOT. To calculate emissions, the te-
chnical norms from the Environmental Company of the State of São Paulo (CETESB, in Portuguese) and the
Environmental Protection Agency (EPA) were used. Installations carry out surveillance of atmospheric emissions
resulting from stationary sources annually or at the demand of a local environmental agency, as per company
procedure doc.emb 2314 and the Plan of Surveillance for Atmospheric Emissions (PMEA, in Portuguese). PMEAs
identify all installed stationary sources, analyzed parameters and systems for controlling employed pollutants.
Emissions monitored are: Particulated Matter, Volatile Organic Compounds, Nitrogen Oxide, Sulphuric Oxide and
Carbon Monoxide. Emissions, measured in mg/Nm3, are converted to tonnes/year in order to verify if they ex-
ceeded the limits set by law. Results are recorded at the local environmental agency and do not exceed the set
limits, a compensation project not being necessary.
Emissions from volatile organic compounds were significantly reduced in the last few years due to the installation
of robots in the main painting cabins, which lessened the quantity of paint used for planes, consequently redu-
cing VOC emissions. Also added are the improvements made for control procedures for calculating emissions.
Total discard of water, separated by quality and destination |G4-EN22|
Emissions of substances that destroy the ozone layer (SDOs, in Portuguese) |G4-EN20|
Emissions shown in tonnes of equivalent CFC-11, calculated using the Ozone Depleting Potential (ODP) adopted
by Montreal Protocol. Values taken from the Environmental Protection Agency (EPA), available at www.epa.gov/
ozone/science/ods/index.html.
Total volume
of water
discard (m³)
2014
2015
2016
Treatment
Destination
Emissions of substances that destroy the ozone layer (SDOs, in Portuguese)
Precursor
HCFC-22
HCFC-141b
Total
ODP (tCFC-11E/t gas)
2014 (tonnes)
2015 (tonnes)
2016 (tonnes)
0.055
0.110
0.165
0.08
0.03
0.11
0.08
0.03
0.11
0.04
0.02
0.06
Domestic
318,443
373,229
291,422
SJK
EGM
GPX
TTE
213,196
164,318
153,752
Primary treatment – railing
46,867
56,970
48,270
Primary treatment – railing
Public sewage
collection network
Public sewage
collection network
38,009
20,371
34,465
13,311
34,319
12,440
Anaerobic treatment
Local stream
Aerobic treatment
Local stream
Emissions of NOx, SOx and other significant atmospheric emissions |G4-EN21|
Industrial
71,108
116,126
108,047
OGMA
N/C
104,165
42,641
Biological treatment
Categories
NOx
SOx
2014
2015
2016
Volume of
emissions in tonnes
Volume of
emissions in tonnes
Volume of
emissions in tonnes
103
2
97
2
91
2
SJK
BOT
EGM
GPX
ELEB
23,708
25,690
24,619
37,702
37,670
28,918
4,160
4,200
3,540
615
827
577
4,923
4,714
3,699
Physical-chemical
treatment
Physical-chemical
treatment
Physical-chemical
treatment
Physical-chemical
treatment
Physical-chemical
treatment
56
Public sewage
collection network
Public sewage
collection network
Public sewage
collection network
Public sewage
collection network
Local stream
Public sewage
collection network
57
OGMA
EVO
N/C
N/C
19,562
19,530
23,466
27,164
Physical-chemical
treatment
Physical-chemical
treatment
Public sewage
collection network
Public sewage
collection network
OBS.: The value of industrial effluent generated at the Harbin unit (1,763 m³) in 2015 was removed from the table since Harbin closed
its operations in 2016. Only effluents treated within Embraer sites were considered. In this way, the volume of the Botucatu’s efluents,
which are sent directly to the municipality concessionaire, was not accounted for in this indicator.
Total weight of waste (in tonnes), separated by type and disposal method* |G4-EN23|
Disposal method
Not dan-
gerous
Danger-
ous
Total
Not dan-
gerous
Danger-
ous
Total
Not dan-
gerous
Danger-
ous
2014
2015
2016
Landfill (non-dangerous)
1,190
0
2
0
1,190
1,408
2
374
1,295
1,008
0
12
0
386
1,008
1,408
2,009
1,067
1,071
0
0
0
0
9
0
0
1,091
1,100
0
0
0
0
394
867
12
0
0
0
1,295
4
0
0
Total
2,009
422
867
989
1
1
0
28
0
977
1
1
10,368
103
10,471
12,284
113
12,397
12,454
97
12,551
853
557
0
0
1,997
2,850
2,490
2,217
4,707
0
0
0
557
695
0
0
29
0
758
128
30
1,453
157
30
846
679
23
0
2,080
2,926
1,479
2,158
118
27
141
27
Incineration
Compost
Co-processing
Decontamination
Sterilization
Recycling
Recovery
Sewage treatment
Physical-chemical treatment
Industrial landfill
(dangerous)
* The waste data from Évora unit, not included in the table, totaled 3,152 tonnes for non-hazardous waste, in which 61 tonnes were subject
to disposal processes and 3,091 were subject to a recovery process. Considering hazardous wastes, 262 tonnes were disposed of and
61 tonnes were recovered. The variation in results between 2015 and 2016 is due to the inclusion of three sites from United States (Mel-
bourne, Nashville and Fort Lauderdale) and the exclusion of the Harbin unit, whose activities ended in 2016.
Total number and volume of significant leakage |G4-EN24|
In 2016, the company did not record leakage of significant volumes.
Number of complaints and claims related to recorded environmental impacts, processed and solved
through formal processes |G4-EN34|
We have not received any report on the Helpline with respect to complaints and claims related to environmental impacts.
58
Total number and rate of employee turnover by age range, gender and region in 2016 |G4-LA1|
Country
Age range
Men
Women
General total
Brazil
China
France
Portugal
Netherlands
Singapore
United States
Under 30 years
Between 30 and 50 years
More than 50 years
Total
264
760
807
Total
1,831
Under 30 years
Between 30 and 50 years
More than 50 years
Total
Under 30 years
Between 30 and 50 years
More than 50 years
Total
Under 30 years
Between 30 and 50 years
More than 50 years
Total
Under 30 years
Between 30 and 50 years
More than 50 years
Total
Under 30 years
Between 30 and 50 years
More than 50 years
Total
0
4
2
6
5
50
14
69
15
30
1
46
0
0
1
1
0
3
0
3
Under 30 years
55
Between 30 and 50 years
135
More than 50 years
Total
39
229
%
1.43
4.11
4.36
9.89
0.00
0.02
0.01
0.03
0.03
0.27
0.08
0.37
0.08
0.16
0.01
0.25
0.00
0.00
0.01
0.01
0.00
0.02
0.00
0.02
0.30
0.73
0.21
1.24
Total
123
216
55
394
0
12
0
12
6
35
7
48
1
5
0
6
0
2
0
2
0
0
0
0
7
28
11
46
General total
2,185
11.81
508
%
0.66
1.17
0.30
2.13
0.00
0.06
0.00
0.06
0.03
0.19
0.04
0.26
0.01
0.03
0.00
0.03
0.00
0.01
0.00
0.01
0.00
0.00
0.00
0.00
0.04
0.15
0.06
0.25
2.75
Total
387
976
862
%
2.09
5.27
4.66
2,225
12.02
0
16
2
18
11
85
21
117
16
35
1
52
0
2
1
3
0
3
0
3
62
163
50
275
0.00
0.09
0.01
0.10
0.06
0.46
0.11
0.63
0.09
0.19
0.01
0.28
0.00
0.01
0.01
0.02
0.00
0.02
0.00
0.02
0.34
0.88
0.27
1.49
2,693
14.55
59
Total number and new employee rate by age range, gender and region in 2016 |G4-LA1|
Accidents with leave for all workers (direct employees) |G4-LA6|
Country
Age range
Men
Women
General total
Brazil
China
France
Portugal
Netherlands
Singapore
United States
Under 30 years
Between 30 and 50 years
More than 50 years
Total
Under 30 years
Between 30 and 50 years
More than 50 years
Total
Total
361
130
4
495
0
4
1
5
Under 30 years
79
Between 30 and 50 years
163
More than 50 years
Total
Under 30 years
Between 30 and 50 years
More than 50 years
Total
Under 30 years
Between 30 and 50 years
More than 50 years
Total
Under 30 years
Between 30 and 50 years
More than 50 years
Total
Under 30 years
Between 30 and 50 years
More than 50 years
Total
49
291
1
17
0
18
1
20
1
22
22
24
0
46
0
3
0
3
General total
880
%
1.95
0.70
0.02
2.67
0.00
0.02
0.01
0.03
0.43
0.88
0.26
1.57
0.01
0.09
0.00
0.10
0.01
0.11
0.01
0.12
0.12
0.13
0.00
0.25
0.00
0.02
0.00
0.02
4.76
Total
157
57
0
214
1
6
0
7
22
39
9
70
3
5
0
8
1
7
0
8
7
5
0
12
0
0
0
0
319
%
0.85
0.31
0.00
1.16
0.01
0.03
0.00
0.04
0.12
0.21
0.05
0.38
0.02
0.03
0.00
0.04
0.01
0.04
0.00
0.04
0.04
0.03
0.00
0.06
0.00
0.00
0.00
0.00
1.72
Total
518
187
4
709
1
10
1
12
101
202
58
361
4
22
0
26
2
27
1
30
29
29
0
58
0
3
0
3
1,199
%
2.80
1.01
0.02
3.83
0.01
0.05
0.01
0.06
0.55
1.09
0.31
1.95
0.02
0.12
0.00
0.14
0.01
0.15
0.01
0.16
0.16
0.16
0.00
0.31
0.00
0.02
0.00
0.02
6.48
60
Region
South America (Brazil)
North America (United States)
Europe, Middle East and Africa
Asia
Total
2014
2015
2016
47
11
6
0
64
38
20
24
0
82
28
13
2
0
43
Accidents with leave for all workers (third-party employees) |G4-LA6|
Region
South America (Brazil)
North America (United States)
Europe, Middle East and Africa
Asia
Total
2014
2015
2016
22
0
12
0
34
Accidents rate with leave for all workers (direct employees) |G4-LA6|
Region
South America (Brazil)
North America (United States)
Europe, Middle East and Africa
Asia
Total
2014
1.45
4.29
6.96
0
1.77
Accidents rate with leave for all workers (third-party employees) |G4-LA6|
Region
South America (Brazil)
North America (United States)
Europe, Middle East and Africa
Asia
Total
2014
2.37
0
29.10
0
3.51
17
0
1
0
18
2015
1.17
7.63
22.23
0
2.25
2015
1.49
0
4.95
0
1.54
35
0
0
0
35
2016
0.88
3.65
2.68
0
1.19
2016
2.78
0
0
0
2.60
61
Occupational illness for all workers (direct employees) |G4-LA6|
Region
South America (Brazil)
North America (United States)
Europe, Middle East and Africa
Asia
Total
2014
2015
2016
15
0
0
0
15
8
0
0
0
8
6
0
0
0
6
Occupational illness rates for all workers (direct employees) |G4-LA6|
Region
2014
2015
2016
Number of occupational illnesses
Rate of occupational illnesses
South America (Brazil)
North America (United States)
Europe, Middle East and Africa
Asia
Total
15
0
0
0
15
0.25
0.19
0
0
0
0
0
0
0.22
0.17
Days lost (accidents + illnesses) for all workers (company employees) |G4-LA6|
Region
South America (Brazil)
North America (United States)
Europe, Middle East and Africa
Asia
Total
2014
993
203
110
0
1,306
2015
6,945*
423
438
0
7,806
2016
885
17
25
0
927
* Considering a fatal accident which took place in 2015, for which 6,000 lost days were counted, as per NBR 14280.
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total
number of work-related fatalities, by region and by gender |G4-LA6|
Days lost (accidents + illnesses) for all workers (third-party employees) |G4-LA6|
Region
2015
2014
223
0
0
0
223
210
0
17
0
227
South America (Brazil)
North America (United States)
Europe, Middle East and Africa
Asia
Total
62
2016
609
0
0
0
609
Rate of days lost (accidents + illness) for all workers (third-party employees) |G4-LA6|
2015
Region
2014
South America (Brazil)
North America (United States of America)
Europe, Middle East and Africa
Asia
Total
24.04
0
0
0
23.00
1.49
0
4.95
0
1.54
2016
48.43
0
0
0
45.27
Absentee rate separated by women |G4-LA6|
Scheduled hours
Hours of absence
3,918,774.14
Absentee rate separated by men
Scheduled hours
22,151,700.83
Total
Scheduled hours
26,070,474.97
265,285.47
Hours of absence
854,162.27
Hours of absence
1,119,447.74
Percentage
6.77
Percentage
3.86
Percentage
4.29
Total number and rate of occupational illness for third-party employees is zero (0). There were not deaths for the
report’s period.
Rate of days lost (accidents + illnesses) for all workers (company employees) |G4-LA6|
Region
South America (Brazil)
North America (United States of America)
Europe, Middle East and Africa
Asia
Total
2014
30.55
79.23
127.65
0
36.08
2015
213.70
161.47
405.64
0
214.04
2016
27.92
4.77
33.44
0
25.65
Employees with high incidence or high risk of illness related to their occupation |G4-LA7|
None.
63
Average number of training hours per year per employee, separated by gender
and functional category* |G4-LA9|
Functional category
2014
2015
2016
Men
Women
Men
Women
Men
Women
Board of Executive Officers
Number of men
who were regu-
larly evaluated
Percentage
of men who
were regularly
evaluated
Total
women
Number of
women who
were regularly
evaluated
Percentage of
women who
were regularly
evaluated
Analysis of career performance and development in 2016* |G4-LA11|
Hour load
1,101
297
5,383
Board of
Executive
Officers
Employees in the category
Hours per employee
Hour load
79
14
8
37
73
74
967
9
107
3,832
396
72
53
9
44
4,512
1,692
16,544
3,312
19,280
2,820
Manager
Employees in the category
Hours per employee
234
19
43
39
235
70
40
83
223
86
34
83
Hour load
31,266
3,901
35,363
4,015
24,152
2,696
Supervisor
Employees in the category
Hours per employee
Hour load
Pilot
Employees in the category
Hours per employee
726
43
1,332
106
13
81
48
0
0
0
678
52
1,285
102
13
75
54
0
0
0
625
39
2,694
93
29
69
39
0
0
0
Hour load
133,344
23,180
105,260
18,843
116,927
20,091
Engineer
Employees in the category
Hours per employee
3,708
36
576
40
3,783
28
586
32
3,550
33
544
37
Hour load
31,691
21,669
29,652
21,756
33,698
27,243
Professional
Employees in the category
Hours per employee
1,271
25
961
23
1,300
23
965
23
1,236
27
942
29
Hour load
98,781
14,151
95,219
8,807
128,310
18,772
Technical
Employees in the category
Hours per employee
3,013
33
277
51
3,168
30
300
29
2,879
45
329
57
Hour load
16,108
13,558
11,382
8,679
9,880
6,397
Administrative
Employees in the category
Hours per employee
490
33
386
35
480
24
377
23
420
24
309
21
Total
men
72
223
625
93
3,550
1,236
2,879
420
6,066
79
235
657
91
3,465
1,173
2,639
390
4,727
15,164
13,456
Manager
Supervisor
Pilot
Engineer
Professional
Technical
Administrative
Operational
Total
110
105
105
98
98
95
92
93
78
89
9
34
69
0
544
942
329
309
535
11
32
78
0
538
886
259
298
375
2,771
2,477
122
94
113
0
99
94
79
96
70
89
* Due to the Voluntary Dismissal Program, the number of employees is less than the number of evaluated in some categories.
Composition of groups responsible for governing and separating employees by functional category, in
accordance with gender, age range, minority status and other diversity indicators |G4-LA12|
Functional category
Board of Executive Officers
Manager
Supervisor
Pilot
Engineer
Professional
Technical
Administrative
Operational
Total
Total
91
314
720
93
4,150
2,523
3,244
754
6,617
18,506
Woman (%)
Man (%)
10
14
11
0
13
41
10
42
8
16
90
86
89
100
87
59
90
58
92
84
Functional category
Total
Under 30 years (%)
From 30 to
50 years (%)
More than
50 years (%)
Hour load
197,431
14,677
179,383
11,229
194,844
13,384
Board of Executive Officers
Operational
Employees in the category
Hours per employee
6,619
30
589
25
6,603
27
599
19
6,066
32
535
25
Hour load
515,565
93,126
479,470
77,607
533,617
91,799
Total
Employees in the category
16,246
2,921
16,422
2,951
15,164
2,771
Hours per employee
32
32
39
26
35
33
* There was an alteration of data related to prior years since, in 2014, the Embraer standard for functional categorization was used. In consolidating training
hours per capita, for what was considered the total number of training participants, there was an alteration so that the number of company employees would
be considered. Data for 2013, 2014 and 2015 is global. In 2015 there was an increase in training hours for Leadership, due to the implementation of the
Leader School.
Manager
Supervisor
Pilot
Engineer
Professional
Technical
Administrative
Operational
Total
91
314
720
93
4,150
2,523
3,244
754
6,617
18,506
0
1
2
0
18
17
23
32
20
19
48
65
80
45
72
72
64
56
76
71
52
34
18
55
10
11
13
11
5
10
64
65
Employees by
minority status
Number of black employees who
work for the company
Percentage of leadership positions
occupied by black employees
Number of people
with disabilities
20141
829
2.67
709
20151
889
2.60
755
20162
1,480
2.30
617
1. Data strictly refers to Brazil. 2. Data referring to 2016 includes integral subsidiaries – Atech and Savis-Bradar.
Composition of groups responsible for governing and separating employees by functional category, in
accordance with gender, age range, minority status and other diversity indicators |G4-LA12|
Governance body
Board of Directors
Board of Executive Officers
Total
11
10
Woman (%)
Man (%)
9
10
91
90
Governance body
Total
Under 30 years (%)
Board of Directors
Board of Executive Officers
11
10
0
0
From 30 to
50 years (%)
More than
50 years (%)
9
30
91
70
Number of complaints and claims related to recorded labor practices, processed and solved
through formal processes |G4-LA16|
All reported problems, concerns, complaints or violations addressed to the Embraer Helpline are treated confidentially.
The complaint will receive a protocol in order to follow the report status online. The verification process is covered by
a policy and a procedure, following a calculation methodology. Embraer does not tolerate retaliation with anyone who
reports a concern in good faith.
Reports made on the complaint channel
Outside the scope
Inside the scope
Applied measures
Warnings and suspensions
Exemptions
Coaching, surveillance, orientation, awareness campaign and improvement of processes and policies
2016 (Helpline)
325
23
302
100
31
6
63
66
Total number of employee training hours regarding human rights or procedures related to
human rights matters relevant to the Organization’s operations, including the percentage of
trained employees |G4-HR2|
Number of hours dedicated
to training employees
Total number of hours dedicated to
training for policies or procedures
related to human rights matters
Percentage of hours dedicated to
training for policies or procedures
related to human rights matters
Brazil
China
United States
France
Netherlands
Portugal
Singapore
Total
Brazil
China
United States
France
Netherlands
Portugal
Singapore
Total
548,296
1,526
61,868
452
1,391
10,489
1,394
625,416
1,303
16
500
14
46
199
3
2,081
0.2
1.0
0.8
3.0
3.3
1.9
0.2
0.3
Number of employees*
Number of employees trained in
policies or procedures related to
human rights matters
Percentage of employees trained
in policies or procedures related to
human rights matters
15,436
67
1,763
112
94
407
56
17,935
1,168
13
445
13
40
167
2
1,848
7.6
19.4
25.2
11.6
42.6
41.0
3.6
10.3
* Data does not include subsidiaries.
Total number of cases of discrimination and corrective measures taken |G4-HR3|
There was no internal or external case of discrimination due to ethnicity, color, sex, religion, ideology, nationality
or social origin reported on the official company channel (Helpline) which had been verified and considered as
having happened in 2016.
Percentage of operations with implemented programs of local community engagement,
impact evaluation and local development |G4-SO1|
Percentage of operations with programs of local community engagement is 49.98%.
67
Total number and percentage of operations submitted to risk evaluation related to corruption
and significant identified risks |G4-SO3|
Communication and training in policies and procedures for fighting corruption |G4-SO4|
Operations
Due diligence of suppliers
Due diligence of sponsors
Due diligence of donations
Due diligence of class entities
Total number of operations submitted to
risk evaluations related to corruption
Percentage of operations submitted to
risk evaluations related to corruption
5,164
146
34
96
100
100
100
100
Risks related to corruption
Type of risk
evaluation
Action to mitigate risks
Conflicts of interest (improper or
incorrect payments in order to
obtain favors)
Qualitative
Improper accounting (incorrect
records and/or provisioning)
Qualitative
Inclusion of the subject of conflicts of interest in training that is related to
anti-corruption and to the Code of Ethics, analysis of suppliers through the
due diligence process, in addition to responses to periodic consultations
held with the Compliance team. Additionally, continuous surveillance was im-
plemented for payments considered critical and specific tests were included
for the departments analyzed by the Internal Audit. Control tests were also
performed for SOx certification, by the Internal Controls department.
Continuous surveillance was implemented for payments considered critical
and specific tests were included for the departments analyzed by the Internal
Audit. Additionally, control tests were also performed for SOx certification, by
the Internal Controls department.
Qualitative
Inclusion of specific tests in the departments analyzed by the Internal Audit.
The Compliance team's carrying out of the due diligence analyses, in addi-
tion to carrying out training on anti-corruption matters. Additionally, specific
tests for verifying due diligence in Mergers and Acquisitions (M&A) processes
were included in the Internal Audit's work plan.
Inclusion of the subject of conflicts of interest in training that is related to
anti-corruption and to the Code of Ethics, analysis of suppliers through the
due diligence process, in addition to responses to periodic consultations
held with the Compliance team. Additionally, continuous surveillance was im-
plemented for payments considered critical and specific tests were included
for the departments analyzed by the Internal Audit. Control tests were also
performed for SOx certification, by the Internal Controls department.
Continuous surveillance was implemented for payments considered critical
and specific tests were included for the departments analyzed by the Internal
Audit. Additionally, control tests are made for SOx certification, executed by
Internal Controls and training actions and responses to periodic consulta-
tions made to the Compliance team.
Improper commercial discounts
(absence of approval or alteration
of prices)
Failure to observe proper anti-
corruption procedures in the
M&A process
Qualitative
Improper or duplicated payment
(to public authorities and
certifying entities)
Qualitative
Bribery or improper benefits (improp-
erly receiving or paying suppliers,
commercial representatives, custom-
ers, public authorities and
external entities)
Qualitative
68
Region*
Governance bodies established in the organization
Number of individuals and/or employees
that compose each governance body
Southeast
Total
Board of Directors
Fiscal Counsil
Board of Executive Officers
3
13
10
9
32
Region*
Number of individuals and/or
employees that compose each
governance body in each region
Number of members of the
governance body to which anti-
corruption policies and procedures
have been communicated
Percentage of members of the
governance body to which anti-
corruption policies and procedures
have been communicated
Southeast
32
* Considered only the Southeast region of Brazil
32
100
Functional categories
Leaders
Non-leaders
Number of employees in each functional category
1,177
16,133
Types of trading partners
Suppliers
Third parties (commercial representatives,
law firms and logistics agents)
Number of each type of trading partner
5,064
100
Functional category
Board of Executive Officers
Manager
Supervisor
Pilot
Engineer
Professional
Technical
Administrative
Operational
Total
Number of employees who were notified of the
anti-corruption procedures and policies
Percentage of employees who were notified of
the anti-corruption procedures and policies
87
382
629
77
3,680
0
3,223
8,027
1,205
17,310
98
97
99
99
100
0
95
94
99
97
69
Confirmed incidents of corruption and actions taken |G4-SO5|
None.
Number of complaints and claims related to recorded societal impacts, processed and solved
through formal processes |G4-SO11|
None.
Results from customer satisfaction surveys |G4-PR5|
Satisfaction indicators obtained from the annual
satisfaction survey of Commercial Aviation customers (%)
Embraer Absolute Favorability (EAF)
Relative-to-benchmark Favorability (RBF)
Embraer Absolute Unfavorability (EAU)
Spontaneous General Satisfaction Index (ISGE)
2014
67.20
0.85
8.00
87.40
2015
77.30
0.85
3.60
85.90
2016
83.20
0.91
3.70
84.90
70
GRI G4
CONTENT INDEX
|G4-32|
Materiality
Disclosures
Embraer SA
7
1
0
2
l
u
J
e
c
i
v
r
e
S
General standard content
STRATEGY AND ANALYSIS
G4-1
G4-2
ORGANIZATIONAL PROFILE
G4-3
G4-4
G4-5
G4-6
G4-7
G4-8
G4-9
G4-10
G4-11
G4-12
G4-13
G4-14
G4-15
G4-16
MATERIAL ASPECTS IDENTIFIED AND LIMITS
G4-17
G4-18
G4-19
G4-20
G4-21
G4-22
G4-23
INVOLVEMENT OF STAKEHOLDERS
G4-24
G4-25
G4-26
G4-27
Page
Global compact
6
3
8 to 9 and 10 to 11
6; 7 and 20 to 21
4
13 and 24 to 29
13 and 44
13 and 14 to 15
4
13; 14 to 15 and 24 to 29
13
34 and 44 to 45
37
38
26; 28 and 30
20 to 21
41
41 and 45 to 46
4
4 and 6
46 to 48
46 to 48
6 and 46 to 48
4
4
21
21
21 and 48 to 49
6
71
General standard content
REPORT PROFILE
Page
Global compact
G4-28
G4-29
G4-30
G4-31
G4-32
G4-33
GOVERNANCE
G4-34
G4-35
G4-36
G4-37
G4-38
G4-39
G4-40
G4-41
G4-42
G4-43
G4-44
G4-45
G4-46
G4-47
G4-48
G4-49
ETHICS AND INTEGRITY
G4-56
G4-57
G4-58
4
48
4
4
4 and 71 to 74
4
16 to 17
17
17
48 to 49
17
17
16 to 17
16 to 17
16
49
17
30
20 to 21
17
50
50
15 and 19
20
20
10
10
10
SPECIFIC STANDARD CONTENT
Information about
management
approach and
indicators
Material
aspects
CATEGORY: ECONOMIC
Economic perfor-
mance
Market presence
Indirect economic
impacts
G4-DMA
G4-EC1
G4-EC2
G4-EC3
G4-DMA
G4-EC5
G4-DMA
G4-EC7
G4-EC8
CATEGORY: ENVIRONMENTAL
G4-DMA
G4-EN3
G4-EN5
G4-EN6
G4-EN7
G4-DMA
G4-EN8
G4-EN9
G4-EN10
G4-DMA
G4-EN15
G4-EN16
G4-EN17
G4-EN18
G4-EN19
G4-EN20
G4-EN21
G4-DMA
G4-EN22
G4-EN23
G4-EN24
G4-DMA
G4-EN27
G4-DMA
G4-EN32
G4-EN33
G4-DMA
G4-EN34
Energy
Water
Emissions
Effluent and
waste
Products and
services
Environmental
assessment of
suppliers
Procedures for
complaints and
claims related
to environmental
impacts
21; 31 to 33 and 36
33
21
36
36
36 and 50
42 to 43
42 to 43
42 to 43
40 to 41
40 and 50 to 51
51
40 and 52
25 and 29
40 to 41
41 and 53
53
41 and 53 to 54
40 to 41 and 54
40 and 54 to 55
40 and 55
40 and 55
40 and 56
40 and 56
40 and 56
40 and 56 to 57
40 to 41
41 and 57 to 58
41 and 58
58
29
29
38 to 39
38
38
20
58
Page
Omissions
Global
compact
Currently unavailable. There is no information on the energy reductions of
products sold during the period covered by the report.
7
6
7 | 8
8
8 | 9
8 | 9
7 | 8
8
8
7 | 8
7 | 8
7 | 8
8
8 | 9
7 | 8
7 | 8
8
8
8
Currently unavailable. As of the date of publication of this report, the
numerical results of the tests performed were not disclosed. Howe-
ver, it can be stated that the flights were satisfactory and occurred
within normal performance conditions.
7 | 8 | 9
Currently unavailable. There is no monitoring of negative
environmental impacts in the supply chain.
8
8
8
6
72
CATEGORY: SOCIAL
SUB-CATEGORY: Labor practices and decent work
Employment
G4-DMA
G4-LA1
G4-LA2
G4-DMA
G4-LA5
Health and safety
at work
G4-LA6
G4-LA7
G4-LA8
34 and 36
34 and 59 to 60
36
36 to 37
37
37 and 61 to 63
63
37
Currently unavailable. Discriminated rates by gender will only be
possible by 2018. Information for absenteeism rate is available,
but there is no breakdown by region of this figures.
SPECIFIC STANDARD CONTENT
Information about
management
approach and
indicators
Material
aspects
G4-DMA
G4-LA9
G4-LA10
G4-LA11
G4-DMA
Training and
education
Diversity and
equality
of opportunities
Page
35 to 36
36 and 64
36 and 37
35 to 36 and 65
34
G4-LA12
34 and 65 to 66
At Embraer we value diversity and we are committed to providing equal
employment opportunities, without regard to ethnicity, age, gender,
religion, national origin, physical or mental disability, sexual orientation or
medical condition.
Omissions
Global
compact
Currently unavailable. There is no monitoring of negative
impacts on labor practices in the supply chain.
Evaluation of
suppliers’ labor
practices
Procedures for
complaints and
claims related to
labor practices
G4-DMA
G4-LA14
G4-LA15
G4-DMA
G4-LA16
SUB-CATEGORY: Human rights
Investments
Non-discrimina-
tion
Freedom of
association
and collective
bargaining
Child labor
Forced work or
analogous with
slavery
Supplier evalua-
tion as
to human rights
Procedures for
complaints and
claims related to
human rights
G4-DMA
G4-HR1
G4-HR2
G4-DMA
G4-HR3
G4-DMA
G4-HR4
G4-DMA
G4-HR5
G4-DMA
G4-HR6
G4-DMA
G4-HR10
G4-DMA
G4-HR12
SUB-CATEGORY: Society
Local commu-
nities
Fight against
corruption
Supplier evalua-
tion as
to impacts on
society
Procedures for
complaints and
claims related
to impacts on
society
G4-DMA
G4-SO1
G4-DMA
G4-SO3
G4-SO4
G4-SO5
G4-DMA
G4-SO9
G4-DMA
G4-SO11
SUB-CATEGORY: Product liability
Labeling of
products
and services
G4-DMA
G4-PR5
38 to 39
38
38
20
20 and 66
35 to 36
38
36 and 67
19
67
38 to 39
38
38 to 39
38
38 to 39
38
38 to 39
38
20
20
42 to 43
42 to 43 and 67
18 and 19
18 to 19 and 68
18 to 19 and 69
70
38 to 39
38
20
70
24
24 and 70
6
6
6
2
1
6
3
5
4
2
1
1
10
10
10
MATERIALITY 2017-2019
The review of the first Materiality Matrix (2014-2016), conducted
during 2016, followed the guidelines of the Global Reporting Ini-
tiative (GRI) guidelines from version G4. The definition of the set
of themes to be analyzed considered the topics identified in the
first matrix, the recently launched Sustainable Development Goals
(SDGs) and the topics routinely addressed in the sustainability
indices of the New York and São Paulo stock exchanges.
Thus, 21 themes were initially defined for the consultation pro-
cess: biofuels; biodiversity; local community development; person-
al development; socioeconomic development in the local supply
chain; dematerialization; human and labor rights; availability of raw
materials; diversity and inclusion; atmospheric emissions; ethics,
transparency and compliance; product lifecycle management; nat-
ural resources and waste; risk and crisis management; chemical
substances management; research, development and innovation;
noise; health, safety and well-being; product safety; information
security; economic and financial sustainability.
The Embraer Business System (SEE, in Portuguese) was used
as a reference to define the stakeholders to be consulted in the
process. The SEE determines the key stakeholders (clients, cus-
tomers, partners, shareholders and society) of the company and
defines the business management model, the organization model
and the main roles and responsibilities for the management of
Embraer. The process also involved sectoral and regulatory organi-
zations, aviation experts and civil society organizations.
The process was attended by 46 representatives of Embraer’s main
stakeholders, of which: 6 shareholders; 11 clients of the Business,
Executive and Defense and Security Aviation
business units; 6 suppliers; 11 representa-
tives of society (including NGOs, sectoral or-
ganizations and experts in the sustainability
field) and 12 employees from different ar-
eas of the company. In order to ensure the
identification of the most significant topics
for the company’s business, the vice presi-
dents and the CEO were also consulted.
The matrix was later validated by the Sus-
tainability Committee, the Board of Executive
Officers and by Embraer’s CEO. The materi-
al issues identified will be the basis for the
new Sustainability Plan (2018-2020), which
will be developed during 2017 and will pres-
ent specific indicators and targets for each
issue. The Plan will continue to be disclosed
annually, which will allow monitoring of the
company’s results and progress in relation
to the achievement of the goals established.
The following materiality presents the eight
themes identified in the process considering
the combined vision (significance of the en-
vironmental, social and economic impacts
related to the Embraer activities versus the
influence of the theme for the company’s
stakeholders) of the evaluations carried out.
Natural resources
and waste
Ethics, transparency
and compliance
Health,
safety and
well-being
Atmospheric
emissions
MATE RI ALI TY
MATERIALITY
Economic
and financial
sustainability
Product
safety
Other issues covered:
Biofuel
Biodiversity
Local community development
Socioeconomic development in the
local supply chain
Dematerialization
Human and labor rights
Diversity and inclusion
Availability of raw materials
Product lifecycle management
Risk and crisis management
Chemical substances management
Noise
Information security
Research, development
and innovation
Personal
development
Credits
OVERALL COORDINATION
VICE PRESIDENCY OF PEOPLE AND SUSTAINABILITY
CORPORATE SUSTAINABILITY MANAGEMENT
CONSULTANCY FOR INDICATORS, EDITORIAL
COORDINATION, LAYOUT, REVIEW AND CONTENT
THEMEDIAGROUP
TEXT
KMZ CONTEÚDO
(COORDINATION: THEMEDIAGROUP)
ENGLISH TRANSLATION
CENTRAL DE TRADUÇÕES & GLOBAL LANGUAGES
PHOTOGRAPHY
EMBRAER’S COLLECTION
76