Contents
Introduction
Message from
President and CEO
03
05
07
Message from the President
of the Board of Directors
08
20
About Embraer
Sustainability
management
23
Economic
performance
26 Social
performance
29 Environmental
performance
Attachment GRI
GRI content index
31
62
70 Credits
Contents
INTRODUCTION
Contents
Embraer S.A. is committed to disclosing the re-
sults of its operations and progress made in the
relationship with its stakeholders on an annual
basis, including customers, shareholders, peo-
ple, partners and civil society. |102-1, 102-5, 102-40|
In line with such principle, this report has been
prepared in accordance with the GRI Standards:
Core option. |102-54|
This is the first stage of the transition to the
new format, which replaces the G4 version.
This publication is also a publicly available
source of information, as requested by the Dow
Jones Sustainability Index (DJSI); and evidence
of the commitments made under the Global
Compact, of which the company is a signato-
ry, and the Sustainable Development Goals
(SDGs) set by the United Nations (UN).
Its content reflects the current Materiality
Matrix, and covers the activities of the admin-
istrative parent company and its subsidiaries in
Brazil and abroad from January 1 to December
31, 2017 – except as otherwise indicated in the
explanatory notes. |102-45 | 102-46 | 102-48 | 102-49 | 102-50|
The financial data and the inventory of green-
house gases (GHG) emitted were respectively au-
dited by KPMG Auditores Independentes and by
Lloyd’s Register Quality Assurance (LRQA). The
remaining data was reviewed internally. |102-56|
THANK YOU
FOR YOUR
INTEREST.
For more information,
go to:
http://ri.embraer.com.br
or send an email to
investor.relations@embraer.com.br |102-53|
Contents
!"##$%"& '()!&
&
MESSAGE FROM
THE PRESIDENT AND CEO
|102-14|
PASSION FOR EXCELLENCE
In 2017, we strengthened the pillars that will support
our growth in the coming years – ethics, innovation and
efficiency – and we made progress towards reaching
the highest level of excellence in our activities.
We revised our Code of Ethics and Conduct and
strengthened its sovereignty over local laws and cus-
toms in order to uphold the same integrity standards
throughout our operations. We completed our first
external monitoring report – as part of the agreement
reached in the previous year with Brazilian and U.S.
authorities –, which allowed us to identify opportuni-
ties for improvement. We also launched the campaign
#BETHEXAMPLE to promote internal compliance and
rally our employees around the cause.
The external acknowledgment that we have received
is a sign that we are headed in the right direction.
We were listed among the most transparent compa-
nies in Brazil according to a report published by the
non-profit Transparency International, which ranked
us fourth overall and gave us the top score in the
Anticorruption Program category.
Seeking to foster disruptive innovation and research-
ing new business models, we expanded our presence
in the Silicon Valley (California) and Boston, and in-
augurated the Embraer Business Innovation Center
(EBIC) in Melbourne, Florida (USA). Through EBIC,
we established a preliminary agreement with Uber
Technologies to explore the development and deploy-
ment of small electric Vertical Take-Off and Landing
vehicles (VTOLs) for short urban commutes, with the
potential of changing urban mobility as we know it.
With the objective of improving efficiency, we imple-
mented Passion for Excellence, an initiative that covers
several disciplines, such as purchasing, logistics, engi-
neering, production, services & support, organizational
culture and design. Our Passion for Excellence is what
gives us strength to keep up with the constant trans-
formations taking place in our industry, and allows
us to celebrate the significant progress being made
in each of our business units.
In Commercial Aviation, we celebrated the suc-
cessful outcome of important tests for the second
generation of E-Jets, for which we completed 100%
of the E190-E2 certification program. In April 2018,
the first aircraft will be delivered to the norwegian
Widerøe. The new E-Jets family already has more
than 700 purchase commitments from airlines and
leasing companies. In addition, first-generation
E-Jets account for 58% of our revenue, which will
ensure a stable and mature portfolio transition.
Our KC-390 military freighter achieved Initial Op-
erational Capability (IOC). In 2018, we will make
the first delivery to the Brazilian Air Force and will
start selling it to other countries such as Portugal,
which has already expressed interest in the aircraft.
In 2017, we also entered into agreements for the
sale of 18 units of the A-29 Super Tucano, which
5
5
E T H I C S ,
I N N O VAT I O N
A N D E F F I C I E N CY
Contents
|102-14|
attests to this model’s international suc-
cess, now in operation in more than 13
countries. Also in Defense & Security,
we launched the Strategic Defense and
Communications Geostationary Satellite
(SGDC, in Portuguese), through our sub-
sidiary Visiona. The successful launch
experience has inspired us to negotiate
a potential new contract for a second
satellite as early as 2018.
In Executive Aviation, we delivered
our 1,100th aircraft: a Phenom 300, the
most-delivered jet model in its category
since 2012, according to the General
Aviation Manufacturers Association
(GAMA). We also made enhancements
to the Phenom 100EV – which in 2017
was certified by the Brazilian National
Civil Aviation Agency (ANAC, in Portu-
guese), in Brazil, the Federal Aviation
Administration (FAA) in the U.S., and the
European Aviation Safety Agency (EASA)
– and we delivered Phenom 300E. We
are confident that the segment will see
a gradual recovery moving forward, as
some signs indicate that the inventory of
used aircraft for sale is starting to drop.
In order to reinforce our commitment to
offer the best experience to our custom-
ers, we completed the structuring phase
for the new Services & Support unit. By
concentrating all services provided across
the various sectors in which we operate,
we ensure greater operational efficiency.
The new unit will also expand our portfolio
and ultimately diversify our revenues.
By planning our growth, we advance
our agenda of promoting sustainable
IN APRIL 2018,
WE WILL DELIVER
THE FIRST E190-E2
THE NEW MODEL
ALREADY HAS
280 FIRM ORDERS
AND MORE THAN
700 COMMITMENTS
local development. In this sense, we
reiterate our commitments made un-
der the Global Compact of the United
Nations. Last year, we established the
Embraer Foundation in the United
States, which, similarly to the Embraer
Institute in Brazil, establishes partner-
ships, engages volunteers and helps
build an entrepreneurial culture among
members of the communities served.
In 2017, we began discussions with
Boeing – already a partner in engineer-
ing, eco-efficiency and socio-cultural
projects – for a possible business com-
bination between the two companies.
Negotiations are ongoing and any struc-
ture will be subject to the approval of
the Brazilian Government, national and
international regulatory bodies and the
two companies. There is no guarantee
that the aforementioned business com-
bination will materialize.
We want to become the world’s best and
the most efficient company in the aero-
nautical industry, and we have the po-
tential to do so. We will stay on this path,
certain that we closed out the year stronger
than ever. What drives our conviction is
the trust of our customers, employees and
business partners – whom we would like to
thank for another round of achievements.
Paulo Cesar de Souza e Silva
President and CEO
Contents
MESSAGE FROM
THE PRESIDENT
OF THE BOARD
OF DIRECTORS
|102-14|
COMMITMENT TO INTEGRITY
It is our mission to transform Embraer into a ref-
erence in ethics and compliance both in Brazil
and around the world. We have made consis-
tent strides in that sense, completing the first
external monitoring report after entering into
agreements with entities responsible for ethics
and compliance in Brazil and abroad. The results
steer our Compliance Program’s mechanisms
and strategies, which combines prevention, de-
tection and discipline actions, in addition to pro-
moting the constant involvement of employees
within the organizational culture through contin-
uous training. The goal is to ensure the highest
level of integrity and reinforce the ethics and
compliance culture throughout the company.
RENEWAL AND TRANSPARENCY IN BD
In 2017, two new members joined our Board
of Directors (BD). The six other independent
members were reelected, representing a 25%
renewal of the board. Voting was carried out in
accordance with the company’s Bylaws and the
Novo Mercado Listing Regulation. This trend of
promoting diversity and renewal contributes to
our continuous and efficient innovation, adding
value to our employees.
ORGANIZATIONAL IMPROVEMENT
The Vice-Presidency of Strategy, Innovation,
and Digital Transformation was established to
explore disruptive business models, promote
new service platforms and keep the company
at the forefront of the aerospace industry.
The new Services & Support Unit will consoli-
date the capacities currently located in differ-
ent business areas in order to deliver even more
effective solutions to our customers.
RESULTS
In recent years, we have improved our portfo-
lio by developing new aircraft and services – in
compliance with specifications, budget, and
deadlines. As a result of our effort and invest-
ment, even in the challenging scenario cur-
rently faced by the industry, we reached the
end of 2017 with revenues of US$5.839 billion,
US$18.3 billion in firm orders (backlog) and an
adjusted net income of US$279.7 million.
We are confident in the gradual recovery of the
Executive Aviation industry and remain opti-
mistic about the imminent certifications for the
KC-390 military transport aircraft and for the
second-generation of E-Jets. The new aircraft,
added to the expansion and diversification of
our service portfolio, will sustain Embraer’s
competitiveness in the global market. Our com-
mitment to excellence, ethics, and science re-
inforces this belief.
Thank you very much.
Alexandre Silva
President of the Board of Directors
7
7
Contents
ABOUT
EMBRAER
8
Contents
Embraer is the
leading exporter
of high value-added
goods in Brazil
|102-7|
Embraer is a Brazilian company with headquarters in
São José dos Campos, São Paulo, and units located in
28 other cities in Brazil and abroad. It operates in the
development, manufacturing and sale of aircraft and
systems, in addition to providing after-sales support
and services for Commercial Aviation, Executive Avia-
tion and Defense & Security. In 2017, it started a busi-
ness unit focused on services and support, with the aim
of diversifying revenues and strengthening its business
position in the more than a hundred countries where its
products are sold. Embraer is the world leader in com-
mercial jets with up to 150 seats, and the main exporter
of high value-added goods from Brazil. |102-2, 102-6, 102-10|
It is also the parent company of Embraer’s Equipment
Division (EDE, formerly known as ELEB), Embraer Aero
Seating Technologies (EAST), Atech, Savis and Bradar,
in addition to holding a 51% stake in Visiona Tecnologia
Espacial Telebras and 65% of OGMA, which develops in-
tegrated solutions and aerostructures.
In 2017, Embraer registered R$18,713 billion in net
revenue and US$18.3 billion in secured orders –
results that testify to the commitment of its 18,433
employees worldwide.
VISION |102-16|
Embraer will further consolidate its position as one of
the leading forces in the global aerospace and defense
and security industries. Embraer is a market leader in
the segments in which it operates and commands a rep-
utation for excellence.
VALUES |102-16|
• Ethics and integrity are at the core of everything we do.
• Our people are what make us fly.
• We are here to serve our customers.
• We strive for business excellence.
• We build a sustainable future.
• Global presence is our frontier.
• Boldness and innovation are our hallmarks.
To learn more about the company, please go to our cor-
porate site at: www.embraer.com
9
9
9
Contents
THE SKY HAS NO LIMITS |102-4, 102-6|
United States
Memphis
Dallas
Nashville
Fort Lauderdale
Melbourne
Mesa
Windsor Locks
Jacksonville
Irwindale
Titusville
Mexico
Chihuahua
Brazil
São José dos Campos (SP)
Gavião Peixoto (SP)
Botucatu (SP)
Taubaté (SP)
Sorocaba (SP)
Campinas (SP)
São Paulo (SP)
Florianópolis (SC)
Brasília (DF)
Belo Horizonte (MG)
Netherlands
Amsterdam
United Kingdom
Farnborough
Ireland
Dublin
Portugal
Évora
Alverca
France
Le Bourget
SERVICE
CENTER
FACTORY
ENGINEERING AND
TECHNOLOGY CENTER
LOGISTICS
CENTER
DISTRIBUTION
CENTER
China
Beijing
United Arab
Emirates
Dubai
Singapore
Singapore
10
Contents
Ranked 2nd
in the Aerospace & Defense
segment of the Dow Jones
Sustainability Index
CORPORATE GOVERNANCE
A publicly-traded company, Embraer
stocks are traded on the New York Stock
Exchange (NYSE: ERJ), through American
Depositary Receipts (ADRs) level III, and
on the Novo Mercado segment of São
Paulo stock exchange (B3, in Portuguese),
under the symbol EMBR3. The number
of votes by shareholders in each Share-
holders’ Meeting is less than 5% of the
number of shares that comprise its cap-
ital stock. The number of votes cast by
foreign shareholders, individually or col-
lectively, cannot exceed 40% of the total
votes cast at any Shareholders’ Meet-
ing. The company also imposes certain
conditions on any shareholder holding
a stake equal to or greater than 35% of
the capital, including the requirement
of a public tender offer to purchase all
outstanding shares, and authorization
from Brazil’s Federal Government, which
owns a special class share that grants
it veto power on strategic issues for the
company and the country. |102-5, 102-25|
It is affiliated to the Brazilian Institute
of Corporate Governance (IBGC, in Por-
tuguese), the Brazilian Association of
Publicly-Traded Companies (ABRASCA,
in Portuguese), the Brazilian Institute of
Investor Relations (IBRI, in Portuguese),
and the National Investors Institute of
Brazil (INI, in Portuguese).
It was listed on the Dow Jones Sustainabil-
ity Index (DJSI) for the eighth consecutive
year, with an overall score of 75 points that
moved the company up to second place in
the Aerospace & Defense segment ranking.
Compared with 2016, Embraer maintained
its leadership in the supply chain manage-
ment and innovation management catego-
ries, and moved up to first place in people
development, labor practices and product
lifecycle management.
It was also listed on the Business Sustain-
ability Index (ISE, in Portuguese), the Brazil
Index (IBrX), the Differentiated Corporate
Governance Stock Index (IGC, in Portuguese),
the Differentiated Tag Along Stock Index
(ITAG, in Portuguese), the Industrial Sector
Index (INDX, in Portuguese), and the Brasil
50 Index (IBrX 50, in Portuguese), all in B3.
Governance structure
The members of the Board of Directors are
chosen at a Shareholders’ Meeting: one is
appointed by Brazil’s Federal Government,
two are chosen by company employees
and eight are elected by the other share-
holders. The directors appoint the statu-
tory executive officers and are advised by
three committees on specific matters. A
permanent and independent Fiscal Board
also comprises the company’s corporate
governance structure. |102-24|
GOVERNANCE STRUCTURE |102-18|
SHAREHOLDERS’
MEETING
FISCAL BOARD
BOARD OF
DIRECTORS
BOARD OF
EXECUTIVE
OFFICERS
STRATEGY
COMMITTEE
AUDIT
AND RISK
COMMITTEE
PEOPLE AND
GOVERNANCE
COMMITTEE
COMPLIANCE
INTERNAL
AUDITING
RISK AND
INTERNAL
CONTROLS
The composition and all duties of the Board
of Directors, the Committees, the Fiscal Board
and Board of Executive Officers, as well as
information on voting rights and convocations
of the Shareholders’ Meeting are detailed
in the Investor Relations Portal and in the
Bylaws. |102-19, 102-22, 102-23, 102-26|
Each member of the Board of Executive Officers
is evaluated on an annual basis through exter-
nal consulting or according to the 360° meth-
odology. An external consultant supports the
performance evaluation of directors, members
from the Board of Directors and the President
and CEO. The executives make a self-evaluation
and evaluate the others every year. |102-28|
11
11
11
Contents
RISK MANAGEMENT
Seeking to ensure an efficient risk management, Embraer
holds periodic reviews in order to properly assess the
views of its executives regarding the main risks involved
in the company’s operations and internal processes.
Embraer’s risk management policy focuses on four cat-
egories set out in the Risk Management Policy: strategic,
operational, financial and regulatory/legal risks. The
structure is strengthened by the work of the Internal
Risk and Control department, which aims to ensure that
the identification, prioritization, assessment and man-
agement of the main business risks are carried out in
accordance with the best practices established by the
company and the market. In addition, an independent
Internal Audit department reports directly to the Audit
and Risk Committee in order to ensure the independence
and objectivity of the auditors contracted to perform
external audit services. More information is available in
the Reference Form. For every risk identified, the policy
assigns an employee who is responsible for monitoring
the progress of the mitigation plans and the monitoring
indicators. |102-11, 102-15, 102-30|
On the specific issue of climate change, the company
monitors international discussions on the subject, as
well as current and future legislation, both in Brazil and
in the countries where the company has a presence.
In addition, the largest factories (which represent 47%
of the total) are certified with ISO 14001, and Embraer
maintains the goal of bringing certification to 100%
of industrial plants. As for product sustainability, the
company has the Integrated Development of the En-
vironmentally Sustainable Product (DIPAS, in Portu-
guese), project, as well as joint research with Boeing
under the ecoDemonstrator program and the Biofuel
Research Center (see chapter 5 of this publication).
PASSION FOR EXCELLENCE
Launched in 2007, the Embraer Business Ex-
cellence Program (P3E, in Portuguese) seeks
to promote excellence in the company’s man-
agement, processes and products.
The program is based on continuous improve-
ment cells, encompassing all Embraer business
units, locations and processes, connected to the
value streams that define the strategies, and en-
sure continuous value generation to stakeholders.
The kaizen concept is widely disseminated and
used to review processes for optimization, focus-
ing on productivity gains and waste elimination.
In 2017, Passion for Excellence was launched
with the goal of transforming Embraer into the
best and most efficient aerospace and de-
fense company in the world. To operational-
ize Passion for Excellence, the Transformation
Office was created, being responsible for the
management of all workstreams and aiming
to guarantee the execution of the projects and
the planned results, as well as the maintenance
and the reinforcement of lean and excellence
concepts, incorporated into the management of
the company since 2007 with P3E. The Passion
for Exellence is comprised by 15 workstreams:
Direct Procurement, Indirect Procurement, IT,
Design to Value (DtV), Inventory, Engineering,
Manufacturing, Services & Support, G&A, Ze-
ro-Based Budget, Organizational Design, Digital
Transformation, Industrial Intelligence, Culture
and Investment Forum.
Based on risk management, projected results
and stakeholder demands, the Board of Directors
approves the strategic plan, with a 15-year hori-
zon, which undergoes an annual review process
that involves the company’s administrative and
operational functions.
EMBRAER:
VALUE STREAMS
• Win customers
• Develop products
• Deliver orders
• Serve customers
• Business management
STAKEHOLDER
VALUES |102-40|
• Customers | Availability, Performance,
Competitive Offering/Solutions, Safety
• Shareholders | Financial return/
Financial health
• People | Professional and personal fulfillment
• Partners | Integrity and continuity
• Civil society and the environment |
Respect for society and the environment, with
generation of wealth and well-being
IN 2017, EMBRAER LAUNCHED
THE PASSION FOR EXCELLENCE,
A PROGRAM THAT AIMS TO
TRANSFORM EMBRAER INTO
THE BEST AND MOST EFFICIENT
AEROSPACE AND DEFENSE
COMPANY IN THE WORLD
12
12
Contents
THEMATIC SCOPE
Peace, justice and
effective institutions
ETHICS AND INTEGRITY
|103-2, 103-3, 205-1, 205-2, Anti-Corruption|
To ensure the integrity and legal compliance of all
operations and sites, the Compliance area coordi-
nates the Compliance Program, supervised by the
Board of Directors, the Audit and Risk Committee
and the CEO. One year after reaching agreements
with Brazil’s Federal Prosecutor’s Office (MPF, in
Portuguese), and its Securities and Exchange Com-
mission (CVM, in Portuguese), and with the U.S.
Department of Justice (DOJ) and the U.S. Securities
and Exchange Commission (SEC), our first external
audit report was completed. Its results guided the
improvement of processes and controls under this
program and the continuous training and work-
shops on ethics, integrity and compliance. Thus,
workshops and online training were held to ap-
proximately 17,000 empolyees, and more than 250
compliance agents were trained to act as multipliers
of internal ethical principles. All board members,
executive board officers, leaders, employees and
contractors are trained on the guidelines set out
in these documents. Click here to learn more. |102-16|
Still within the scope of the Compliance Program,
the auditing system was extended to other com-
pany functions in 2017. This is a tool that monitors
critical operations, such as vendor payment, travel
expenses, donations and sponsorships. In order to
promote compliance practices and raise employee
awareness on this issue, the company launched
the internal campaign #BETHEEXAM PLE.
The Code of Ethics and Conduct has been revised
to strengthen its sovereignty over the laws and cus-
toms of the different countries where the company
operates. The Helpline has been set up to field
any complaints concerning noncompliance.
Contents
Complaints are consolidated by an exter-
nal company, which guarantees the ano-
nymity of the complainant*, and sent to
the Compliance function, which monitors
verification and resolution. More informa-
tion is available here. |102-17, 103-2|
In 2017, Embraer conducted its Ethics Survey
at all units in Brazil and abroad, with the
purpose of assessing employee perception
on ethics in the workplace. The methodology
was developed by external consultants to
ensure the confidentiality of respondents
and the consequent adherence of most
employees. The results are currently being
compiled and will be used to develop action
plans and training programs. Promotion for
the helpline and the #BETHEEXAMPLE
campaign is based on survey responses,
and will continue throughout next year. |102-17|
Committed to upholding a level playing field
in the global market, the company supported
the creation of a dispute settlement panel at
the World Trade Organization (WTO) in Gene-
va, to investigate the more than USD3 billion
in subsidies received by Bombardier from
the Canadian and Québec governments.
After approving the Brazilian Government’s
request, the WTO is now investigating more
than 25 programs in support of the Canadian
aviation industry.
BUSINESS UNITS
At the 52nd Paris Air Show, held in 2017, Em-
braer celebrated 40 years of its first par-
ticipation at the event – one of the most
traditional aerospace events. The compa-
ny repeated the strategy employed at the
previous year’s Farnborough Air Show, in
England, and showcased its Commercial
Aviation, Executive Aviation and Defense
& Security products, all in the same space,
in addition to introducing its new Services
and Support business unit.
* Except in countries where legislation does not al-
low anonymous complaints. In this case, Embraer
observes the local legislation.
Number of labor practice complaints fielded, processed and resolved
through a formal mechanism in 2017 |103-2|
Complaints made through the hotline
Out of scope
Within scope
Measures implemented
Warnings and suspensions
Layoffs
Coaching, monitoring, guidance, awareness campaign
and improved processes and policies
492
48
444
106
16
16
74
14
14
EMBRAER IS
THE WORLD
LEADING
MANUFACTURER
OF COMMERCIAL
JETS UP TO
150 SEATS
The first
generation of
the E-Jets family
reached the
mark of 1 billion
passengers
carried
worldwide
Contents
Commercial Aviation
Embraer is the world leading manufacturer
of commercial jets with up to 150 seats,
with an approximate 30% share of the glob-
al market. In 2017, the company delivered
101 commercial aircraft.
The latest-generation E-Jets E2 program
stayed on schedule, within the original
budget and met specifications targets.
The E195-E2 took its maiden flight in 2017.
The model features an exclusive wing that
allows it to have the highest aspect ratio
among single-aisle jets, reducing fuel con-
sumption and operating costs. The inaugural
flight of the fourth E190-E2 prototype also
took place in 2017, with more than 95% of
the tests required for the certification
campaign successfully completed, with
emphasis in conditions and cabin evacua-
tion tests. All six prototypes (four E190-E2
and two E195-E2) have conducted more
than 1,850 flight-test hours, and more than
44,000 ground-test hours.
In 2018, Embraer will start serial produc-
tion of the E190-E2, whose first delivery
is scheduled for April. The company will
also continue to invest in other products
of its aircraft family, namely the E195-E2
and E175-E2, which are scheduled to entry
into service in the first half of 2019 and
in 2021, respectively. Since their launch,
the company received more than 700 pur-
chase commitments for the E2, of which
280 as firm orders.
2017 was also the year that the company
celebrated 20 years of commercial opera-
tion of the 50-seat ERJ-145 jet, which de-
livered around 900 aircraft in the period.
LEARN MORE AT
www.embraercommercialaviation.com/pt-br
Contents
Executive Aviation
Embraer is among the world’s largest manufactur-
ers of business jets. In 2017, the company delivered
72 small jets and 37 large jets, for a total of 109
aircraft. The global market seems to be recovering,
as some signs indicate that the inventory of used
aircraft for sale is starting to shrink. The year’s
highlights include delivery of the first Legacy 500
executive jet assembled in Melbourne, Florida.
Since the plant’s start-up in 2011, it has delivered
more than 290 aircraft to the United States and 17
other countries, such as United Kingdom, Canada,
Mexico and China.
The company also celebrated the delivery of
its 1,100th aircraft: a Phenom 300, the world’s
most-delivered jet of its category since 2012, ac-
cording to the General Aviation Manufacturers
Association (GAMA). The year was also marked
by improvements made to the Phenom 100 EV
– which in 2017 earned certification from the
Brazilian National Civil Aviation Agency (ANAC,
in Portuguese), in Brazil, the Federal Aviation
Administration (FAA) in the United States and
European Aviation Safety Agency (EASA) – as well
as the launch of the Phenom 300E, with the first
delivery scheduled for the first quarter of 2018.
LEARN MORE AT
http://pt.embraerexecutivejets.com
THE PHENOM 300
IS THE MOST
DELIVERED JET
IN ITS CATEGORY
FOR THE SIXTH
CONSECUTIVE YEAR
One of the
world’s largest
manufacturers of
business jets
Contents
Defense & Security
Embraer is the leader of the Defense & Security seg-
ment in Latin America and has expanded its opera-
tions in the global market. In 2017, the KC-390 certi-
fication has progressed as planned. Both prototypes
used in the campaign exceeded 1,500 flight hours and
performed well in high-altitude paratrooper airdrops,
which included the use of night vision equipment.
The aircraft reached Initial Operational Capability (IOC).
There are sales campaigns in progress with several
countries, and there are advanced negotiations on a
deal for five aircraft (with an option for a sixth) and the
logistics support package in Portugal. Serial production
is moving forward with assembly of aircraft 003, 004 and
005, and the company has also started manufacturing
parts for aircraft 006, 007 and 008.The first deliveries
will take place in 2018, when the KC-390 will achieve
Final Operational Clearance (FOC) certification.
As for the A-29 Super Tucano program, Embraer Defense
& Security has partnered with U.S.-based Sierra Ne-
vada Corporation, and participated in the U.S. Air Force
light attack platform capability assessment in August
2017. The A-29 Super Tucano met all desired mission
requirements of the assessment and was approved for
the second phase of testing.
Also in 2017, four Phenom 100 light jets were delivered
to Affinity Flight Training Services, completing the ful-
fillment of their order. The aircraft was selected by the
United Kingdom’s Ministry of Defense to be used in pilot
training for the British Armed Forces. The contract with
Affinity includes a firm order for five Phenom 100 and
support services. This synergy between the Defense &
Security and Executive Aviation units highlights Em-
braer’s commitment and focus in meeting the needs
of its various clients.
During the first year of activities of the Project and Devel-
opment Center for the Gripen fighter jet (Gripen Design
Development Network, GDDN) in Gavião Peixoto, São
Paulo, more than 100 Embraer engineers underwent full-
time training for the development and maintenance of the
Gripen NG aircraft, in cooperation with Saab engineers.
And at Saab facilities in Linköping, Sweden, the Gripen E,
a new generation model, made its inaugural flight in 2017.
The contract with the Brazilian Air Force calls for the acqui-
sition of 36 fighter jets, whose deliveries will start in 2019.
With a focus on diversifying its portfolio, the segment
also invests in air traffic control products and inte-
grated border protection systems. Developed by Savis
and Bradar, the Brazilian border monitoring project
known as SISFRON, advanced in accordance with the
agreemeent with the Brazilian Army.
About two thirds of the project, which consists of an
800-kilometer border line in the state of Mato Grosso
do Sul, has already been delivered. Final delivery is
scheduled for 2019.
The Strategic Defense and Communications Geosta-
tionary Satellite (SGDC, in Portuguese), was launched
in May and successfully completed the orbital testing
period. The SGDC will provide internet coverage for
the entire Brazilian territory, in addition to a safe en-
vironment for Brazilian Government communications.
Visiona, a joint venture between Embraer and Telebras,
was responsible for integrating the SGDC Program. The
satellite’s control was transferred to Telebras, and as-
sisted operations have already begun. In addition, the
companies entered into a Specialized Technical Assis-
tance agreement for flight planning of the equipment.
TO LEARN MORE ABOUT THE DEFENSE & SECURITY
FIRMS, GO TO www.embraerds.com
AGRICULTURAL AVIATION
In continuous production for over 50 years,
the Ipanema is the leading aircraft in the
Brazilian agricultural aviation industry, with
a 75% share. The model was the first world-
wide to be certified to operate exclusively
with ethanol. In 2017, Embraer introduced
the Ipanema 203, an evolved version of the
product that was showcased at Agrishow
2017, Brazil’s largest agribusiness event.
The aircraft has already earned the Sus-
tainable Aero-Agricultural Certification
(CAS, in Portuguese). Customers of the
new model have recorded an increase in
productivity of up to 50% compared to the
previous version, which demonstrates the
benefits of the incremental changes made.
Click here for more information.
17
17
THE NEW
SERVICE & SUPPORT
UNIT REINFORCES
EMBRAER’S
COMMITMENT
TOWARDS
CONTINUOUSLY
IMPROVING
ITS PORTFOLIO
Contents
Services & Support
The creation of Embraer Services & Support reinforces the compa-
ny’s commitment to its customers throughout the product lifecycle.
Along with the new business unit, Embraer also launched TechCare,
a platform that expands the portfolio of solutions geared towards
operational efficiency and increasing the useful life of aircraft.
These innovations result from more than 20 years of experience
dedicated to building and enhancing high-quality service networks.
In 2017, Embraer expanded its global support network by choosing
the SIA Engineering Corporation (SIAEP) in the Philippines – a
subsidiary of SIA Engineering Company Limited (SIAEC) – as an au-
thorized service center for the E-Jets family of commercial jets. |102-10|
The company announced that the Embraer Training Center in
Johannesburg, South Africa, will open in 2018. The facility will be
the first of its kind in the African continent to provide a wide range
of training programs to qualified pilots, maintenance technicians
and crew members on a single site. Once it is fully operational, the
center will be capable of training approximately 2,000 aerospace
professionals per year. |102-10|
For Executive Aviation customers, Embraer named JF Services as
authorized service centers for the Legacy 450 and 500 in Russia;
in Argentina, it introduced Aero Baires, its first authorized service
center for business jets in the country. With facilities located
at the airfield in San Fernando, Buenos Aires, the center has
been certified by the local Administración Nacional de Aviación
Civil, Argentina’s local aviation authority, for maintenance of the
Phenom 100 and Phenom 300 aircraft. The company also an-
nounced the opening of Embraer Executive Jet Services, a repair
station at Le Bourget Airport, outside Paris.
For the second consecutive year, the customer support provided by
the Executive Aviation unit ranked first in the satisfaction survey
conducted by Aviation International News (AIN). The company
earned a score of 8.4 points (out of ten) for new and semi-new busi-
ness jets. The achievement reflects the unit’s continuous commit-
ment to offering better services and experiences to its customers.
LEARN MORE AT
http://services.embraer.com/br/pt
Contents
THEMATIC SCOPE
Industry, innovation
and infrastructure
TECHNOLOGY AND INNOVATION
Embraer invests systematically in research, develop-
ment, innovation and facility enhancement. To ensure
competitiveness, intellectual property is protected
via patents for inventions and designs. In 2017, 66
applications were filed, of which 46 were granted.
Embraer’s patent portfolio reached 669 applications
and 360 patents granted.
In addition to product engineering and development
teams at the manufacturing plants, the company op-
erates Engineering and Technology Centers (ETCs) in
Portugal, the United States and Brazil (see map). In
2017, the list was expanded with the opening of an
ETC in Florianópolis, Santa Catarina, which reinforc-
es the partnership between Embraer and the CERTI
Foundation, established in 2015, and seeks to develop
pre-competitive technology in aeronautical electronic
systems. The project is part of the partnership with
the CERTI Foundation, which began in 2015, and is
supported by the Brazilian Agency for Industrial Re-
search and Innovation (EMBRAPII, in Portuguese), and
the Research Foundation of State of Santa Catarina
(FAPESC, in Portuguese). |102-10|
Another highlight was the start of activities for the
innovation teams in Silicon Valley (California, USA)
and in Boston (USA), whose goal is to identify oppor-
tunities for the air transport business and establish
partnerships with startups, investors, universities and
other companies.
The company began operating the Embraer Business
Inovation Center (EBIC), its global business hub in
Melbourne, Florida (USA), in order to drive innova-
tion in a comprehensive way. The unit is connected
and works in cooperation with all of the company’s
engineering teams worldwide. |102-10|
Some of the EBICs first projects include a preliminary
agreement with Uber Technologies for the exploration
of a new urban mobility concept. The vehicles will be
small, electrically powered, with vertical takeoff and
landing capability, with zero pollutant emissions and
silent enough to operate in urban areas. Experimental
flights are expected to start in 2020, while commer-
cial operation is scheduled for 2023. In addition, the
agreement includes the planning for support structures,
such as passenger loading and alighting platforms, air
traffic control systems, and more.
Together with the German Aerospace Center (Deutsche
Zentrum für Luft- und Raumfahrt – DLR), the company
signed an agreement to expand its contribution to aer-
onautical research. The focus of activities will be the
search for solutions to reduce noise and emissions,
improve performance of aircraft, development of new
structural material for aviation, among others.
Embraer also conducts research projects in cooper-
ation with leading universities and research centers
in Brazil and around the world, and has celebrated
22 new cooperations for technological development
throughout 2017.
In Brazil, Embraer highlights its participation in initia-
tives such as the Aerospace Private Equity Fund, which
allocated R$ 3 million to four companies with the ob-
jective of strengthening the domestic production chain
of the aerospace, and defense and security segments.
Every year, the Embraer Technology and Innovation
Seminar (SETI, in Portuguese), gathers employees from
several fields and regions to share the main techno-
logical advances developed internally by the company.
This audience is also encouraged by programs such
as Good Idea, aimed at enhancing routine activities.
In 2017, the company adopted 6,200 ideas, resulting in
a return of more than US$40 million for the company.
In the field of disruptive innovation, another highlight
is the Innova Program and its showcase initiative is
Green Light, which provides financial support and offers
employees as much as 100% of scheduled work hours
to work on projects. The company received 78 proposals
over the year, and approved 37 of them.
Embraer also develops connected actions with startups,
seeking innovations that can solve the challenges of
its operation and add value to its clients. The company
is one of the ten companies chosen for the Startup
Industry Connection Program of the Brazilian Industrial
Development Agency (ABDI, in Portuguese). Embraer
encourages the strengthening of the Brazilian startups
ecosystem by promoting mentoring in programs such
as Inovativa Brasil (Federal Government), the Edital
de Inovação para a Indústria (Senai-Sesi-IEL) and
Acelera Fies, as well as sponsoring entrepreneur-
ship programs such as promoted by the University of
Campinas (UNICAMP).
Nearly half of Embraer’s
revenues today comes from
innovations implemented
over the past five years
19
19
Contents
SUSTAINABILITY
MANAGEMENT
Contents
|102-44, 102-47|
In order to obtain a clear picture of the
most relevant sustainability issues to
the company and its stakeholders, Em-
braer engages shareholders, clients,
suppliers, social associations,
labor
unions and trade associations, as well
as the executives themselves, in three-
year consultation cycles. This process
results in the company’s materiality. The
current cycle started in 2017 and reflects
the previous year’s work. At first, the
company listed 21 topics in the consulta-
tion process: biofuels; biodiversity; local
community development; people devel-
opment; socio-economic development
in the local supply chain; dematerializa-
tion; human and labor rights; availability
of raw materials; diversity and inclusion;
air emissions; ethics, transparency and
compliance; product lifecycle manage-
ment; natural resources and waste man-
agement; risk and crisis management;
chemicals management; research, de-
velopment and innovation; noise; health,
safety and well-being; product safety;
information security; and economic and
financial sustainability.
Natural
resources
and waste
Ethics,
transparency
and compliance
Health,
safety and
well-being
Economic
and financial
sustainability
MATERIALITY
M ATERIAL ITY
Atmospheric
emissions
Product
safety
Research,
development
and innovation
Personal
development
OTHER TOPICS ASSESSED
• Biofuels
• Biodiversity
• Local community development
• Socio-economic development
in the local supply chain
• Dematerialization
• Human and labor rights
• Diversity and inclusion
• Availability of raw materials
• Product lifecycle
• Risk and crisis management
• Chemicals
• Noise
• Information security
The respondents – customers, partners
and shareholders – were selected from
the Embraer Enterprise System (EES).
Industry and regulatory organizations,
aviation specialists and civic associa-
tions were also involved in the process,
which included consultations with 46
representatives from the stakeholder
categories: six shareholders; 11 cus-
tomers from the Commercial Aviation,
Executive Aviation, and Defense &
Security business units; six vendors; 11
civil society representatives (consider-
ing nonprofits, trade associations and
subject matter experts), plus 12 employ-
ees from various company functions. In
order to ensure that the topics were
aligned with the company’s business,
Vice-Presidents and the CEO were also
consulted. In addition, the materiality
assessment was later validated by the
Sustainability Committee, the Board of
Executive Officers and the CEO.
The topics identified are listed below,
based on the consolidated score, consid-
ering their relevance both to the compa-
ny’s strategic plans and to stakeholders.
These topics guide the new sustain-
ability plan, which will be deployed in
2018 and have specific goals set by De-
cember 2020. The year was also marked
by the completion of the 2017 Master
Sustainability Plan, available here.
21
Contents
Sustainability
Plan 2020
Item
Water
Indicator
baseline 2016
172 m3/US$ MM
Energy (electricity) 28.5 MWh/US$ MM
Hazardous waste
0.81 tones/US$ MM
Non-hazardous
waste
3.36 tones/US$ MM
Target (%)
-2
-5
-3
-2
- ISO 14001 Certification
Employee engagement in Ethics Survey
TARGET: 100% certification of
manufacturing PLANTS and service
centers with more than 100 people
(including third-party employees)
TARGET: 90%
(Base year 2017: 70%)
Ethics, transparency
and compliance
Natural
resources
and waste
Health, safety
and well being
Return on Equity
(ROE)
Net income (adjusted)
Shareholders’ equity
TARGET: ROE> cost of equity
Economic
and financial
sustainability
- Lost Time Injury Frequency Rate (LTIFR) for
employees and third-parties
TARGET: LTIFR less than or equal to 1
- OHSAS Certification
TARGET: 100% certification of
manufacturing plants and service centers
with more than 100 people
(including third-party employees)
tCO2e (Scope 1*)
net revenue
TARGET: -3%
Atmospheric
emissions
(Base year 2016: 2.44 tCO2e/US$ million)
* Fuel consumption from development
flights and new product certification are
not considered.
Research,
development
and innovation
Personal
development
- Diversity
Product
safety
Risk analysis within
the target period
Total reporting
TARGET: 100%
Pre-competitive*
investment on research and
technology development
TARGET: 1% of the annual revenue
TARGET: 2% increase
in gender and afrodescendant
(Base year 2017: women represented 16%
and afrodescendant 8% of the workforce)
Percentage of annual net revenue invested in
total research, development and innovation
- Volunteering
TARGET: 5% of the annual net revenue
TARGET: leverage the number of volunteer positions
to equivalent 12% of Embraer employees
(Base year 2017: ~4%)
22
Contents
ECONOMIC
PERFORMANCE
Contents
THEMATIC SCOPE
Decent work and
economic growth
In 2017, Embraer met its annual targets for deliveries, net revenues, adjusted free cash
flow (FCF) and investments. The result and the adjusted operating margin (EBIT), EBITDA
and adjusted EBITDA margin* were below targets.
Estimates vs. Actual in 2017 (US$ million)
Deliveries
Commercial Aviation
Executive Aviation
Defense & Security
Net revenues
Commercial Aviation
Executive Aviation
Defense & Security
Others
EBIT
EBIT margin (%)
Adjusted EBITDA
EBITDA margin (%)
Free cash flow
Investments
Research
Development
Capex
Estimate
97-102
105-125
-
3,250-3,400
1,600-1,750
800-900
50
450-550
8.0-9.0
770-890
13.5-14.5
>(150)
50
400
200
Actual
101
109
7
3,372
1,485
951
31
397
6.8
713
12.2
405
49
385
176
* In order to maintain a comparative basis between the years, the results identified with the word “Adjusted”
exclude non-recurrent items from its calculation (impacts arising from the end of the FCPA investigation, the
Voluntary Dismissal Program (PDV, in Portuguese) and the bankruptcy of Republic Airways, among others).
Contents
Combined with the appreciation of the real, the decline in deliveries from 2016 to 2017
resulted in a net revenue of R$18,713.0 million, a 13% drop (R$21,435.7 in 2016); and a
gross margin of 18.3%, down from 19.9% in 2016.
Aircraft delivered per unit
Commercial aviation
Executive aviation
Defense & Security
TOTAL
Net revenue by segment (%)
Net revenue (R$ billions)
Commercial aviation
Executive aviation
Defense & Security
Others
2015
101
120
20
241
2015
20.3
56
29
14
1
2016
108
117
15
240
2016
21.4
57
28
15
-
2017
101
109
7
217
2017
18.7
58
26
16
-
The North American market accounted for
57% of net revenues. The European market
rebounded to reach a 12% share of the com-
pany’s revenues. Brazil also increased its
share and came in at 13%. All other regions
(Latin America, China, Asia-Pacific, Africa
and Middle East) remained stable compa-
red with 2016, with a share of 18%.
In 2017, net income and adjusted operating
margin (EBIT) stood at R$1,280.9 million
(US$397.1 million) and 6.8%, impacted by
the increased costs in the Defense & Security
segment, which were related to the develop-
ment of the KC-390.
Adjusted EBITDA came in at R$2,289.60
million (US$712.5 million) in 2017, 26%
less than in 2016. Meanwhile, the adjusted
EBITDA margin reached 12.2%.
The 57% drop in 2016 regarding net opera-
ting revenues from non-recurring items had
a positive impact on Embraer’s net profits
in 2017, which came in at R$795.8 million
(a 36% increase from 2016). Profit per share
was R$1.0838.
The total added value to be distributed was
R$5,546.2 million, and accounted for 27%
of net revenues in 2017.
217 AIRCRAFT
DELIVERED
R$5,546.2 MILLION
ADDED VALUE DISTRIBUTED
R$18,713.0 MILLION
IN NET REVENUE
R$795.8 MILLION
IN NET PROFIT
25
Contents
SOCIAL
PERFORMANCE
Contents
THEMATIC SCOPE
Health and well-being
Quality education
Gender equality
Decent work and economic growth
Reduction of inequalities
PEOPLE MANAGEMENT |103-2, 103-3
Diversity and equal opportunities, Non discrimination, Freedom of
association and collective bargaining|
At the end of 2017, Embraer had 18,433 em-
ployees: 15,710 in Brazil and 2,723 abroad.
More details on the company’s workforce
can be found here.
Attraction
Amid a highly dynamic and ever-changing en-
vironment, Embraer looks to attract young pro-
fessionals who welcome change, are aligned
with the new global trends, and capable of
facing a wide range of challenges within the
company and industry. College students can
join Embraer through its Internship Program,
while recent graduates can opt for the Trainee
Program, which drew interest from over 11,000
young candidates for the 23 positions opened
in Brazil during its first edition. Embraer also
offers opportunities for young people aged 14
to 24 through a program for young apprentices,
in partnership with the Federal Government.
Embraer invests in specialized education
through initiatives such as the Embraer Proj-
ect Program and the Engineering Specializa-
tion Program. The first is carried out through
a partnership with the College of Technology
of the State of São Paulo (FATEC, in Portu-
guese), and offers technical education and
internships with the company. Meanwhile, the
latter offers a professional Master’s degree in
Aeronautical Engineering, with a certificate
issued by the Aeronautical Institute of Tech-
nology (ITA, in Portuguese), which provides
most of the students the opportunity of being
hired at Embraer. In 2017, 68 people graduated
from both initiatives.
Aimed at fostering inclusion, Embraer also
has a program called Embraer On The Path
to Diversity, which since 2012 offers profes-
sional education to persons with disabilities.
So far, 80 people have been trained through
this program. Click here to learn more about
all of these initiatives.
Development
The company encourages career advancement
and changes in functions through its Internal
Hire Program, in which new job openings are,
at first, disclosed exclusively to an internal
audience. In 2017, there were 67 vacancies
filled due to this initiative.
Employees’ technical and behavioral skills are
stimulated through the education programs.
During the year, more than 7,000 courses and
trainings were provided. The professionals
undergo periodic assessments, the results of
which help define the Individual Development
Program and salary progressions for production
employees starting their career who achieve
positive results. Embraer also has the Embraer
Leadership Program, where leaders undergo
a 360° assessment, Performance Map and
Calibration Committee. |404-3|
In 2017, the company invested R$6,391,015 and
offered 604,525 total training and education
hours (for an average of 61 hours per employee).
More details are available here. |404-1, 404-2, 404-3, 412-2|
Health and safety
The Environmental, Health and Safety Policy
guides actions for the prevention of accidents
and diseases, which are put into practice by the
Behavioral Program, the Tensional Reeducation
Training Program (PERTO, in Portuguese), the
ergonomic risk management, the application of
prevention through design and in the actions
of the Well-Being programs. All the employees
undergo annual medical examinations that al-
low the epidemiological mapping of each area.
In compliance with the legislation, the company
maintains the Internal Commission for Acci-
dent Prevention (CIPA, in Portuguese), which
represents 85.1% of the workforce. It also nego-
tiates formal agreements with trade unions and
clauses to be included in collective bargaining
agreements that contemplate all employees
across Brazil. In its units abroad, the company
strictly follows the laws and regulations of each
country in which it operates. |102-41|
In 2017, the number of accidents that resulted
in medical leave was 33, and the rate of occu-
pational disease was 0.03%. These data are
monitored and analyzed on a monthly basis by
the Board of Executive Officers and the Board
of Directors, and reduction targets are con-
templated under the Sustainability Plan 2020.
PARTNER RELATIONSHIP
MANAGEMENT |102-9, 103-2, 103-3, Procurement
Practices, Supplier Environmental Assessment, non Discrimination,
Freedom of Association And Collective Bargaining, Child Labor,
Forced or Compulsory Labor, Supplier Social Assessment|
Embraer maintains a commercial relationship
with 1,200 vendors for product manufacturing.
This group is evaluated via monthly monitoring
of performance indicators, on-site audits and
periodic environmental impact questionnaires.
The Aeronautical Supply Chain Development
Program (PDCA, in Portuguese), aimed at re-
ducing costs and improving quality, is promot-
ed in partnership with the Brazilian Agency of
Industrial Development (ABDI, in Portuguese)
to improve the contracted companies.
The company also relies on support from 3,000
partners that perform technical and adminis-
trative activities, who attend courses on lean
management and guidelines for kaizen practic-
es under the Management Excellence Program
(PEG, in Portuguese). Participants are chosen
after risks and cost reduction opportunities
are identified.
Approximately 80% of purchases are made
from international vendors from North Amer-
ica (55%), Europe (20%) and the rest of the
world (5%). Transactions with national ven-
dors account for 20% of the total purchasing
amount. |204-1|
All contracts contemplate clauses concerning
human rights, labor and environmental laws.
|308-1, 308-2, 407-1, 408-1, 409-1, 412-3, 414-1, 414-2|
4,200
vendors and
business partners
27
Contents
SOCIAL INVESTMENT
|103-2, 103-3, 203-1, 203-2, 413-1, Direct economic impact,
Local communities|
Social investment in Brazil is coordinated by the
Embraer Institute for Education and Research,
which for more than 15 years promotes educa-
tion-related projects, engagement with civil soci-
ety and the historic preservation of the country’s
aeronautical industry.
The main initiatives include the Juarez Wan-
derley (São José dos Campos, São Paulo) and
Casimiro Montenegro Filho (Botucatu, São
Paulo) schools, which offer free, full-time high
school education to students coming from public
schools and whose household income is lower
than 9x the minimum monthly wage. Students
also receive uniforms, textbooks, meals and
transportation for the entire school year.
In 2017, both schools were among the top-ranked
institutions in the National High School Exam
(ENEM, in Portuguese), and Juarez Wanderley
was ranked 8th in the state of São Paulo.
In addition, more than 80% of their alumni were
admitted to public universities across Brazil. Con-
sidering those admitted in private universities
with full scholarships, the rate of graduates who
attend a college-level institution exceeds 90%.
Some of these students receive financial sup-
port from the Scholarship Fund, an initiative
supported by contributions from businesses and
individuals as well as from former grantees, who
refund the program after entering the job market.
The Embraer Institute also provides finan-
cial support to nonprofit social organizations,
through the Social Partnership Program (PPS,
in Portuguese). The initiative is aimed at sup-
porting projects aligned with the United Nations
Sustainable Development Goals (SDGs). In 2017,
it supported 12 organizations by investing up to
R$40,000 per project.
The entity also operates the Embraer Historic
Center, whose purpose is to preserve and pro-
mote the history of the Brazilian aviation industry.
It currently has exhibition spaces at Embraer
units, organizes virtual exhibits and monthly
guided tours to the São José dos Campos man-
ufacturing plant to community members.
Some of the highlights of 2017 include the “De-
sign in Brazilian aviation” exhibit, which was at-
tended by more than 40,000 visitors to the Museu
da Casa Brasileira (MCB), in São Paulo.
The Embraer Institute also earned the 2017 Aberje
Award, the country’s leading corporate commu-
nications award. The Institute was recognized by
the Brazilian Association of Corporate Communi-
cations (ABERJE, in Portuguese), in the Historical
Responsibility and Business Memory category,
for its efforts to preserve aeronautical memory
over the course of the year.
In 2017, the company created the Embraer Foun-
dation, which consolidates all of the company’s
social initiatives in the United States. As is the
case with the Institute in Brazil, the Foundation
establishes social partnerships, engages employ-
ees in volunteering programs and promotes an
entrepreneurial culture among members of the
communities served.
2017
highlights
R$20
million
invested,
approximately
3,160
graduates from both
high schools since
2002, with more than
90% being admitted
to public and private
universities
244
university
students received
support from the
Scholarship Fund
23
organizations
supported
by Embraer
Institute
and Embraer
Foundation
+
700
volunteers
engaged
worldwide
FOR MORE INFORMATION, GO TO
http://institutoembraer.org.br E http://embraerfoundation.org
LEARN MORE AT
www.centrohistoricoembraer.com.br
28
Contents
Contents
ENVIRONMENTAL
PERFORMANCE
Contents
THEMATIC SCOPE
Industry, innovation and infrastructure
Responsible consumption and production
Action against global climate change
Environmental preservation, eco-efficiency
and product lifecycle management are gui-
ded by the Environmental, Health and Safety
Policy (MASS, in Portuguese).
ENERGY AND WATER
In 2017, Embraer consumed 179,237 MWh, an in-
crease of 1.33% compared to 2016 (176,889 MWh)
due to the inclusion of the Jacksonville unit in
the United States. To reduce consumption, the
company promotes the improvement of proces-
ses, facilities and equipment encouraging energy
efficiency. |302-1, 302-4|
In the year, Embraer consumed 982,826 m3 of
water, of which 6% is related to recycled water.
The volume of water in 2017 was considerably
lower than in 2016 due to improvements made
in the OGMA unit and the implementation of a
water reuse project in Évora.
Click here for more information. |303-1, 303-3|
EFFLUENTS AND WASTE
The effluents are destined to the public network,
except for the units of Taubaté (São Paulo) and
Gavião Peixoto (São Paulo), which dispense them
in the Boçoroca and Mulada streams, respecti-
vely. In order to be able to do this, this units have
their own sewer treatment stations. The volume
discarded is less than the carrying capacity of
the water bodies and both are outside environ-
mental protected areas. Click here to see the
water disposal data of the units broken down by
treatment and destination. |306-1|
Embraer also has strict procedures for waste
management in its units, which are carried out in
accordance with the applicable legislation in each
locality where the industrial plants are present.
Dedicated programs continually seek the use of
less harmful materials as well as the optimiza-
tion of processes. All work is done in line with
the selective collection program, based on the
following order of priority: non-generation, re-
duction, reuse, recycling, treatment and environ-
mentally appropriate final disposal. Information
regarding total weight of waste generated and
destinations are available here. |306-2|
GREENHOUSE GASES
Embraer discloses an annual inventory of
greenhouse gases (GHG), which is ISO 14064
certified and audited by Lloyd’s Register Qual-
ity Assurance (LRQA). Detailed information for
2017 is available here. |305-1, 305-2, 305-3, 305-4, 305-5,
305-6, 305-7|
Committed to the reduction of GHG emissions
by the industry, the company is a signatory to
the aviation industry sustainability commit-
ment, which seeks carbon-neutral growth by
2020 and a 50% reduction of net carbon dioxide
(CO2) emissions in aviation by 2050, compared
to 2005 levels.
PRODUCT LIFECYCLE
Embraer funds a project titled Integrated
Development of Environmentally Sustainable
Products (DIPAS, in Portuguese), which aims
to advance sustainable design, seek alterna-
tives to materials whose use is restricted by
environmental legislation, and develop stu-
dies on the lifecycle of products. It also stri-
ves to make new products more operationally
efficient, emit less CO2 and noise, and con-
sume less fuel. Fuel costs are responsible for
most expenses incurred with operating an air-
craft, whose lifecycle is longer than 15 years.
The reduction of this consumption, paired
with that of energy, meets both environmental
and market needs. |302-5|
To reduce consumption,
the company promotes the
improvement of processes,
facilities and equipment,
pursuing energy efficiency
30
Contents
ATTACHMENT
GRI
Contents
EMBRAER
GRI STANDARDS INDICATORS 2017
102-3 – LOCATION OF THE ORGANIZATION'S HEADQUARTER
Avenida Brigadeiro Faria Lima, 2,170 – Putim, São José dos Campos (SP).
102-8 – INFORMATION ON EMPLOYEES AND OTHER WORKERS
2015
2016
2017
20152
20162
20172
Men
Women
Men
Women
Men
Women
Number of employees by country
By functional level
Board of Executive Officers1
Manager
Supervisor
Pilot
Engineer
Professional
Technical
Administrative
Operational
Total by gender
TOTAL
By type of contract
Determined time
Undetermined time
Total by gender
TOTAL
By work day
Full work day
Part-time
Total by gender
TOTAL
73
235
678
102
3,783
1,300
3,168
480
6,603
16,422
9
40
75
0
586
965
300
377
599
82
269
638
93
3,603
1,487
2,912
435
6,077
9
45
82
0
547
1,036
332
319
540
85
254
618
95
3,620
1,607
2,937
429
5,841
7
43
91
0
589
1,078
329
316
494
Brazil
China
United States
France
Netherlands
Ireland
Portugal
Singapore
Men
Women
Men
Women
Men
Women
14,488
2,519
13,540
2,467
13,260
2,450
48
1,406
89
56
0
294
41
26
262
19
10
1
97
17
46
1,479
93
75
0
324
39
21
284
19
19
0
83
17
41
1,629
54
110
0
351
41
25
321
13
26
0
96
16
Total by gender
16,422
2,951
15,596
2,910
15,486
2,947
2,951
15,596
2,910
15,486
2,947
TOTAL
19,373
18,506
18,433
By workforce
2015
2016
2017
Men
Women
Men
Women
Men
Women
Direct employees
14,488
2,519
13,540
2,467
15,486
2,947
TOTAL
17,007
16,007
18,433
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.
19,373
18,506
18,433
2015
2016
2017
Men
217
16,205
16,422
Women
89
2,862
2,951
Men
306
15,290
15,596
Women
70
2,840
2,910
Men
366
15,120
15,486
Women
90
2,857
2,947
19,373
18,506
18,433
2015
2016
2017
Men
Women
Men
Women
Men
Women
16,403
2,945
15,580
2,905
15,469
2,941
19
6
16
5
17
6
16,422
2,951
15,596
2,910
15,486
2,947
19,373
18,506
18,433
32
Contents
102-12 – EXTERNAL INITIATIVES
All the initiatives mentioned below are voluntary.
Name
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
Urban mobility
Date of adoption
2008
2012
2012
2014
2014
2015
2016
2017
Scope
Global
Global
Global
Global
Global
Involved stakeholders
Suppliers, manufacturers, transportation com panies
and organizations from different sectors
Suppliers, manufacturers, transportation companies
and other organizations from the aerospace sector
Organizations from other sectors
Suppliers, manufacturers, transportation companies
and other organizations from the aerospace sector
Suppliers, manufacturers, transportation com panies
and organizations from different sectors
Brazil (with potential global impact)
Partnership with Boeing
Tests of technologies for products'
performance improvement
VTOLs development
(electric vertical takeoff and landing
vehicles for urban centres)
Partnership with Boeing
Partnership with Uber
33
Contents
102-13 – MEMBERSHIP OF ASSOCIATIONS
Organization/association
Seat on the
Board of
Governance
Participation
in projects/
commissions
Strategic
participation
Organization/association
Seat on the
Board of
Governance
Participation
in projects/
commissions
Strategic
participation
National Agenda
Brazilian Association of Public Companies (Abrasca, in Portuguese)
Brazilian Association of Industries for Defense and Security
Materials (Abimde, in Portuguese)
Yes
Yes
Brazilian Association of General Aviation (Abag, in Portuguese)
Yes
Brazilian Association of Mechanical Sciences (ABCM, in Portuguese)
Yes
Aerospace Industries Association of Brazil (AIAB, in Portuguese)
Yes
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)
Yes
Yes
Yes
National Confederation of Industry (CNI, in Portuguese)*
No
Federation of Industries of the State of São Paulo (Fiesp, in Portuguese) Yes
Brazilian Institute of Corporate Governance (IBGC, in Portuguese) No
Industrial Enterprise Development Institute (IEDI, in Portuguese) Yes
Brazilian National Confederation of Industry (MEI, in Portuguese) 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
International Agenda
Aerospace Industries Association (AIA)
Air Transport Action Group (ATAG)
Aviation Working Group (AWG)
Brazil Industries Coalition (BIC)
American Chamber of Commerce (Amcham)
Yes
Yes
Yes
Yes
Yes
Portuguese Chamber of Commerce in Brazil (CPCB, in Portuguese) Yes
Brazilian Center for International Relations (CEBRI, in Portuguese) Yes
Brazil-China Corporate Council (CEBC, in Portuguese)
Yes
Brazil-United States Corporate Council (CEBEU, in Portuguese) Yes
European Policy Center (EPC)
Global Compact Foundation
No
No
Foreign Trade Study Center Foundation (Funcex, in Portuguese) Yes
General Aviation Manufacturers Association (Gama)
International Aerospace Environmental Group (IAEG)
National Aeronautic Association (NAA)
U.S. Chamber of Commerce (U.S. Chamber)
World Economic Forum (WEF)
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
Yes
Yes
Yes
Yes
Yes
Yes
* Associative participation through the Fiesp system. The list does not present the totality of associations in which Embraer participates.
The most meaningful associations were listed.
102-20 – EXECUTIVE-LEVEL RESPONSIBILITY FOR ECONOMIC, ENVIRONMENTAL,
AND SOCIAL TOPICS
Responsible
Level
Carlos Alberto Griner*
Vice President of People
and Sustainability
José Antonio de Almeida Filippo
Executive Vice President
Topics
Human Resources
and Sustainability
Financial and
Investors relations
Fabiana Klajner Leschziner
Legal Executive Vice President
Legal and Compliance
* Responsible for the annual report elaboration.
34
Contents
Master Sustainability Plan 2017 |102-15|
Aspect
Indicator
Goal (December 2017)
20151
2016
2017
Ethics
Percentage of adherence to compli-
ance policy and procedure2
100%
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
Managers: 94%*
Non managers: 99%*
* Considering the trainings held on
Anti-Corruption – Code of Ethics
and Conduct
Attraction, development and
retention of human resources
Favorability percentage in the
climate survey
80%
89%
There was no survey in 2016; the
company opted for a bi-annual
engagement survey. Engagement
survey will take place in May 2017
There was no survey in 2017
Attraction, development and
retention of human resources
Number of staff training
hours per year
500,000 hours per year
557,077 hours
625,416 hours
604,525 hours
Product safety
Product safety
Management of
chemical substances
Maintenance of type-approval certifi-
cates (CHT, in Portuguese) for commer-
cial and executive aviation planes
Maintenance of company-approval
certificates (CHE, in Portuguese) in all
Embraer sites of interest as defined in
conjunction with the business units
100% of type certificates valid
100%
100% of all sites of
interest certified
100%
100%
100%
100%
100%
Development of the new chemical
substance management 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 environmen-
tal legislation. As of December 2015,
all registrations already incorporate
the modifications made to the
modified system
Finished the structuring and
definitions phases. Carried out
training for all those involved in the
registration of chemical substances
in the SAP system. All inputs
comply with current legislation
New registration system
for hazardous substances
implemented. Continuous action
in order to adjust past liability
Management of
supply chain
Export control
Percentage of suppliers clas-
sified as “high environmental
risk” in risk evaluations
0%
0%
Percentage of adherence to export
policy and procedure
100% adherence to the compliance
evaluation survey
77%
0%
97%
0%
94%
Sustainable new business,
products and services
Number of new business, products
and services incorporating
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
demonstrator program. Technology
tests aimed at reducing fuel con-
sumption, CO2 emissions and noise
Partnership with Uber for the
development of electric air vehicles
for urban mobility
Management of natural
resources and waste
Consumption of energy (MWh) per
equivalent plane
Reduce by 3% consumption by
equivalent plane, in relation to the
base year 2014 (603.78 MWh/equiv-
alent aircraft)
551.96 MWh/aircraft equivalent
(reduction of 9%)
499.79 MWh/equivalent aircraft
(reduction of 17%)
598,21 MWh/equivalent aircraft
(reduction of 1%)
35
Contents
|102-15|
Aspect
Indicator
Goal (December 2017)
20151
2016
2017
Management of natural
resources and waste
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%)
46.12 m3/per capita (increase of 3%).
There was a significant reduction of
employees because of the
Voluntary Dismiss al Program
Management of natural
resources and waste
Generation of solid waste/net revenue
Management of natural
resources and waste
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 ton/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 ton/million dollars)
3.21 ton/million dollars
(increase of 16%)
2.95 ton/million dollars
(increase of 7%)
2.80 ton/million dollars
(increase of 1%)
0.57 ton/million dollars
(increase of 14%)
0.5 ton/million dollars
(maintenance)
0.54 ton/million dollars
(increase of 8%)
Management of natural
resources and waste
Percentage of manufacturing plants
and Embraer service centers with
ISO 14001 certification
100% of manufacturing plants and
service centers that existed in 2014
with ISO 14001 certification
47.05%
47.05%
47.05%
Management of natural
resources and waste
Percentage of manufacturing plants
and Embraer service centers with
relation to environmental liabilities
Atmospheric emissions
Emission of greenhouse gases
(scope 1+2)/net revenue4
Atmospheric emissions
Emission of VOC/net revenue
Human and labor rights
Percentage of individual
suits and labor complaint
procedures per employee
Lost Time Injury Rate (LTIR)
Employee health
and safety
Employee health
and safety
100% of manufacturing plants and
service centers that existed in
2014 with relation to environmental
liabilities (and their respective treat-
ment plans)
New acquisitions of buildings,
installations or businesses, must be
preceded by evaluation of environ-
mental liabilities (environmental due
diligence), aiming to ensure access
to necessary information for the
company to make decisions
Reduce by 3% the emission of
greenhouse gases (scope 1+2) per
million dollars of revenue, in rela-
tion to the base year 2013
Reduce by 3% the emission of VOC
per million dollars of revenue, in rela-
tion to the base year 2013 (0.0063
ton/million dollars)
Standard of excellence (to be a
reference in the market), remaining
below the national average
for companies in the same
sector, in accordance with each
country’s regulating
To reduce the frequency rates of
lost time accidents by 30%,
in relation to 2014’s accident fre-
quency rate
76.47% (13 of 17 units)
76.47% (13 of 17 units)
76.47% (13 of 17 units)
5.48 ton/million dollars
(increase of 8%)
4.09 ton/million dollars
(reduction of 19%)
4.46 ton/million dollars
(reduction of 12%)
0.0034 ton/million dollars
(reduction of 46%)
0.0011 ton/million dollars
(reduction of 82%)
0.0022 ton/million dollars
(reduction of 65%)
0.391%*
* Corrected number
0.306%
0.466%
2014 rate: 1.74
2015 rate: 2.25
1.19
(reduction of 31.6%)
0.99
(reduction of 44%)
Percentage of manufacturing plants
and Embraer service centers with
OHSAS 18,001 certification3
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)
47.05%
36
Contents
|102-15|
Aspect
Indicator
Goal (December 2017)
20151
Transparency and
communication
Percentage of indicators responded
to in the company’s Global Reporting
Initiative (GRI) report
Annual GRI Report
Core option
89.65%
2016
89.65%
2017
71.52%5
Management of the product’s
environmental life cycle
Environmental requirements for
developing products
Incorporate environmental require-
ments, in addition to those for
sound and emissions, for 100% of
products launched
The incorporation of the product’s
environmental 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 Integrated
Development of Products (DIP)
The incorporation of the product’s
environmental 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 Integrated Development of
Products (DIP) process
The incorporation of the product’s
environmental 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 Integrated Development of
Products (DIP) process
Management of the product’s
environmental life cycle
Use of the simplified evaluation of the
product life cycle (DfE Matrix)
Management of the product’s
environmental life cycle
Customer orientation regarding the
end of the product’s life
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
New products in 2015: Legacy 450,
which was evaluated using the
DfE Matrix. Total portfolio: E-jets,
Phenoms and Legacy 500/450
already evaluated, accounting
for 86% of Embraer revenue
Define document containing
Embraer product strategic guidelines
with relation to its end of life
Concluded: the technical guide con-
taining operational guidelines for
customers for the proper disposal of
products at the end of their life
There were no product launches in
2016. Total portfolio: E-jets, Phen-
oms and Legacy 500/450 already
evaluated, accounting for 84.6 % of
Embraer revenue
There were no product launchs in
2017. Total portfolio: E-jets, Phenoms
and Legacy 500/450 already
evaluated, accounting for 82.9% of
Embraer’s revenue
Concluded: the technical guide con-
taining 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
The technical guide containing
operational guidelines for customers
for the correct disposal of end-of-life
products has been completed. Con-
struction of the Corporate End-of-Life
Policy of the product in progress
Local socio-economic
development
Local socio-economic
development
Evaluation average (Balance Score
Card) for the results of annually
supported projects in the scope of the
Social Partnership Program
Number of Embraer volunteers
engaged in Entrepreneurship
programs, Social Partnership Program
and other social projects recognized
by the Embraer Institute
Grade 4, in an evaluation
of 0 to 5 points
Increase 20% the number
of volunteers
2.45
3.44
4.03
+12% (565 volunteers)
+56.72% (793 volunteers)
+43.87% (728 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 stu-
dents 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
Embraer Juarez Wanderley High School:
84% of public university approval
Embraer Casimiro Montenegro Filho
High School: 75% of public
university approval
Research, development
and innovation
Percentage of annual investment in
technological development applied to
projects with environmental gains
Continual increase of the percentage
of annual investment in technologi-
cal development applied to projects
with environmental gains, up to the
minimum of 50% for the base year
2017 (resource to be applied in 2018)
78%
80%
77%
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.
5. The Annual Report 2017 follows the recently released GRI Standards. In comparison to the old format (GRI G4), the new standard presents substantial changes, including topics revision and reformulation of indicators.
37
Contents
102-21 – CONSULTING STAKEHOLDERS ON ECONOMIC, ENVIRONMENTAL, AND SOCIAL TOPICS |
102-43 – APPROACH TO STAKEHOLDER ENGAGEMENT
The main engagement mechanisms adopted by Embraer are represented in the table below and are part of the exercise of interaction between leadership and stakeholders. Every three years,
the Materiality Matrix is revisited based on a formal consultation with stakeholders, with the objective of prioritizing the legal attendance of environmental, social and economic issues.
SH
Event
Objective
Responsible/
Frequency
SH
Event
Objective
Responsible/
Frequency
Customers
Embraer Operators
Conference – EOC
and Embraer
Executive Operators
Conference – EEOC
Conferences, dedicated meetings and workshops with
operators are intended to sustain and enhance the rela-
tionship and discuss issues related to the aircraft (main-
tenance, operations and field issues). It is a means for
customers to regularly and frequently share their needs,
wishes, satisfaction, technical items, and experiences
with the products. The Customer Support areas collect,
analyze, prioritize, and develop action plans for imple-
menting improvements in the products and processes.
This is a process of continuous improvement.
Customer Support/
annual
Shareholders
Kaizens
with customers
Assist with implementing improvements in its
products and processes, while improving the
customer-Embraer interface.
Studies to develop
or improve products
The technical knowledge of some customers for
operating airplanes are used in the product
improvement projects. Therefore, they are contacted
by Embraer to hold meetings and give studies.
Customer satisfac-
tion surveys
Knowledge of the level of satisfaction of
Embraer's customers.
Customer Support/
depending on
demands
Market Intelligence,
Customer Support
and Engineering/
depending on
demands
Customer Support/
annual
Aeronautical fairs
The primary objective is to announce and present
products to potential customers and to sell aircraft.
Sales/in accordance
with calendar
Strategic alignment, presentation of future scenarios,
alignment of suppliers and Embraer's expectation as
well as awarding the best suppliers of the year.
CEO, VPs of
business units and
Executives/annual
Society
Suppliers
Embraer
Suppliers
Conference (ESC)
Supply Chain
Alignment (SCA)
Strategic and operational alignment, presentation of
scenarios and challenges of the year, alignment of
supplier and Embraer´s expectations, working and
action plans.
Executive Meeting
Follow-up of indicators and action plans, alignment of
Embraer's expectations and suppliers.
Customer Support
Meeting (CSM)
Meeting dedicated to aftermarket issues for the
purpose of closely following, with the executives of
our suppliers, the subjecs that have an impact on
the fleet and on our operators. In these executive
meetings, action plans are discussed and presented
for technical and commercial issues for the fleet and
for individual operators.
Program Managers,
Directors and de-
partment of Supplier
Quality/annual
CEO, VPs of busi-
ness units and Exec-
utives/quarterly
CEO, VPs of busi-
ness units and Exec-
utives/quarterly
Program Review
Meeting (PRM)
Technical/operational follow-up of the development
of programs, series, and after-market. Follow-up of
the action plan and route corrections.
Program Directors
and Managers/bi-
annual
Meeting of
the Board of
Directors
Strategy Committee
(CEST, in Portu-
guese)
People and
Governance
Committee
Audit and Risks
Committee (CAR, in
Portuguese)
Investor Relations
Portal
Follow-up of company performance and approval of
the Strategic Plan (SP) and Action Plan (AP).
Legal VP/in accordance
with the calendar
Advising on establishing SP and AP policies and
guidelines, follow-up of management and results.
Legal VP/in accordance
with the calendar
Assistance in electing and dismissing Company direc-
tors, establishing their respective functions,
setting remuneration and human resource policies etc.
Legal VP/in
accordance
with the calendar
Risks and statutory audit management.
Mantain a communications channel between the
company and its investors/shareholders, in order to
transmit information transparency and fairness,
watching over corporate governance.
People and
sustainability VP/in
accordance with
the calendar
Department of
Investor Relations/
continuous
Management of
Corporate Sustain-
ability/annual
Annual Report
Communication and transparency tool to stakehold-
ers about sustainable practices of the company.
Embraer Day
Create a moment of interaction of the company with
its main analysts and investors, with a focus on the
main company information in the period.
Department of
Investor Relations/
biannual
Relationship with regulatory agencies, routine inspec-
tions, and compliance with the law.
Relationship with regulatory agencies, routine inspec-
tions, and compliance with the law. Meetings for sur-
veying the needs and expectations of the municipality
related to education and social development.
Discuss sector strategies and policies, and promote
greater integration and learning with various sectors.
Contribute to the debate, proposing strategies, best
practices, and solutions for global issues, besides
supporting the public-private dialogue.
Meetings: Minis-
try of Labor and
Employment (MTE,
in Portuguese)
Meetings with
CETESB, Sanitation
Surveillance, Federal/
State Police/Ministry
of the Army, Mayors,
Municipal Secretaries
of Education, profes-
sional associations
and Brazilian busi-
ness associations
Participation in
forums and inter-
national organiza-
tions(WEF, ATAG,
IATA, ICAO, UNDP,
GlobalCompact,
OMC, AWG, etc.)
Management of
Labor Safety, Occu-
pational Health and
the Environment/
bimonthly
Management of
Corporate Sustain-
ability/throughout
the current year
Departments of
Foreign Relations
and Management of
Corporate Sustain-
ability/throughout
the current year
38
Contents
102-21 – CONSULTING STAKEHOLDERS ON ECONOMIC, ENVIRONMENTAL,
AND SOCIAL TOPICS |
102-43 – APPROACH TO STAKEHOLDER ENGAGEMENT
102-27 – COLLECTIVE KNOWLEDGE OF HIGHEST GOVERNANCE BODY
Measurements taken to develop
and improve knowledge
Governance body
Economic
Environmental Social
SH
Event
Objective
Society
Meetings with fed-
eral, state and mu-
nicipal governments
and government
agencies
Ensure full understanding of Embraer's actions and
projects; prepare mechanisms for strengthening
private society and government relations; and con-
tribute to making public policies of interest to the
aerospace industry.
Responsible/
Frequency
Departments of
Foreign Relations
and Management of
Corporate Sustain-
ability/ Throughout
the current year
Training of corporate governance
Board of Directors
Presentation on environmental
matters at company sites
Board of Directors
Presentation from the Embraer In-
stitute of Education and Research
(IEEP, in Portuguese)
Board of Directors
Annual compliance training
Board of Directors
People
Blog of the CEO
Direct communication channel of the President with
all employees.
President/contin-
uous
Presentation from the Committee
of Financial Management
Board of Executive Officers
Follow-up meetings
of the AP/PMS and
Semester Alignment
Meetings for accompanying the evolution of the AP
and the PMS, where the leader gives instructions
and takes correcting actions for achieving the goals
agreed upon.
Leaders/at least
quarterly
Helpline
Messages to
Leaders
Confidential tool so that employees and stakeholders
can informar or seek support regarding ethical and
behavioral issues related to possible violations of
Embraer's policies, or of laws and regulations.
Communication instrument for all leaders, seeking
to support leaders in guiding employees regarding
specific subjects.
Compliance Depart-
ment/continuous
Departments of
Brand Manage-
ment and Internal
Communications/
continuous
102-23 – CHAIR OF THE HIGHEST GOVERNANCE BODY
The Chairman of the highest governance body does not hold the position of Executive Officer
according to the veto contained in the Company's By-laws, paragraph 4th of article 27: "...It is for-
bidden for any member of the Board of Directors to hold simultaneously the Company's Executive
officer position."
x
-
-
x
x
-
-
x
-
x
-
-
-
x
x
-
-
-
x
-
-
-
x
-
Presentation of work from the
Committee of Control and
Environmental Risks (CCRA, in
Portuguese)
Presentation of work from
Committee of Sustainability
Board of Executive Officers
Board of Executive Officers
Presentation from the Committee
of Ethics
Board of Executive Officers
102-29 – IDENTIFYING AND MANAGING ECONOMIC, ENVIRONMENTAL,
AND SOCIAL IMPACTS
Additionally to the strategic planning with a 15-year horizon, Embraer's strategic plan is reviewed
annually with the participation of all business, operating and corporate areas; it is approved by
the Board of Directors (CA). The objective is to ensure that the management of impacts, risks and
opportunities arising from economic, environmental and social issues is aligned to performance
expectations and stakeholder interests. Critical due diligence processes, as well as their results,
are expected to be forwarded to the CA for review and follow-up.
In addition, the involvement of stakeholders in economic, environmental and social issues is per-
ceived and analyzed through the company's Materiality Matrix, which is reviewed every three
years in a deep and comprehensive internal and external research process. The materiality was
last revised in 2016 and has given rise to new goals and action plans associated to each priority
theme, targeting 2020.
39
Contents
102-31 – REVIEW OF ECONOMIC, ENVIRONMENTAL, AND SOCIAL TOPICS
The Board of Directors holds regular meetings eight times a year and extraordinarily whenever as
necessary, following its Internal Policies statement. At those meetings, the representatives from the
advisory committees report their activities and discussions to define guidelines. In turn, the Board
of Executive officers reports the activities progress and requests approvals from the Council.
In 2017 the Board of Directors held 13 meetings in total. At all of them, the representatives of the
Committees were present. The Board of Executive officers reported different matters, such as:
visibility of the Company's Plan of Action, which occurred in all meetings; visibility segmented by
business area (executive, defense and commercial aviation); monitoring of the work of Internal
Audit and Compliance and visibility of the Committees who advise the Board: Sustainability, Fi-
nancial Management, Environmental Risks, Ethics and Negotiation and Disclosure.
The Board of Directors maintains a list of recurring matters, which supports organizing the meet-
ings' agenda. Several subjects are defined as relevant and frequently reported by the directors.
Other relevant topics (or those in need of prior analysis) are added and arranged in the agenda.
Both the agenda and the materials that will be presented at the meeting are disclosed to the
counselors at least one week in advance through a governance portal.
102-32 – HIGHEST GOVERNANCE BODY’S ROLE IN SUSTAINABILITY REPORTING
The Annual Report is reviewed by the entire Board of Executive Officers and, ultimately, by the
Chief Executive Officer.
102-33 – COMMUNICATING CRITICAL CONCERNS
The Board of Executive Officers and the Advisory Committees of the Board communicate the
company's critical concerns at regular meetings of the Board of Executive Officers or, if neces-
sary, demand extraordinary meetings.
102-35 – REMUNERATION POLICIES |
102-36 – PROCESS FOR DETERMINING REMUNERATION
The Executive Compensation Policy (PRE, in Portuguese) states that part of the compensation of
its executives is granted as a Long-Term Incentive (ILP, in Portuguese) aiming at maintaining and
attracting qualified personnel that contribute effectively to the best performance of the company.
Details about the compensation processes are available on the Embraer Reference Form. Learn
more at item 13.1 – Description of remuneration policy or practice, including the non-statutory
board until item 13.16 – Other relevant information.
102-37 – STAKEHOLDERS’ INVOLVEMENT IN REMUNERATION
Embraer respects and understands the importance of the role played by the unions with whom
the company relates and maintains a relationship with, in accordance with current legislation. In
the Brazilian units, 5.6% of the employees are unionized, nevertheless, all of employees, union-
ized or not, are contemplated by salary adjustments and social clauses, which are negotiated
in the collective labor conventions signed with the representative union of the employees. The
company negotiates collective labor agreements directly with these entities, covering 100% of the
represented employees. Collective labor conventions contain social clauses that guarantee the
right of unions to carry out unionization campaigns in the company's premises.
102-42 – IDENTIFYING AND SELECTING STAKEHOLDERS
Embraer, in its value stream management, identifies the following stakeholders: people (employ-
ees), company, clients, shareholders and partners (suppliers). They are engaged through a Corpo-
rate Procedure that contains the guidelines for each group. Learn more at: https://embraer.com/
global/en/sustainability.
GRI 103: MANAGEMENT APPROACH
103-1 – EXPLANATION OF THE MATERIAL TOPIC AND ITS BOUNDARY |
102-46 - DEFINING REPORT CONTENT AND MATERIAL TOPICS BOUNDARIES
In order to clearly define the sustainability issues of greatest relevance to the company and its
stakeholders, Embraer engages shareholders, customers, suppliers, representatives of social or-
ganizations and class entities, in addition to its own executives. The engagement is made through
consultation cycles every three years. This process results in the company's Materiality. The cur-
rent one came into force in 2017 and gave rise to the 2020 Sustainability Plan, with indicators and
targets for each material topic.
Material Issue
Stakeholder
Scope
Impacts
Ethics, transparen-
cy and compliance
All
stakeholders of
the company
Inside and
outside of the
organization
Economic and
financial
sustainability
All stakehold-
ers of the com-
pany, specially
shareholders
and employees
Inside and
outside of the
organization
Unethical behavior may damage reputation of a compa-
ny: causing negative effects on customers, employees
and investors; causing financial penalties and, as a
result, affecting profits. The commitment to achieve the
business goals with social responsibility is crucial, con-
sidering the relationship with shareholders, employees
and suppliers, protecting the environment and contrib-
uting to community development.
The poor economic performance of a company directly
impact its shareholders, as it may reduce the compen-
sation and often damages investors. Also, in a long term,
this can lead to direct impacts on employees and the
community in which the company is inserted. Impacts
may be extended to the whole value chain reaching
suppliers and customers.
40
Contents
103-1 – EXPLANATION OF THE MATERIAL TOPIC AND ITS BOUNDARY |
102-46 – DEFINING REPORT CONTENT AND MATERIAL TOPICS BOUNDARIES
Material Issue
Stakeholder
Scope
Impacts
103-2 – THE MANAGEMENT APPROACH AND ITS COMPONENTS |
103-3 – EVALUATION OF THE MANAGEMENT APPROACH
The management and policies associated to each identified material issue are explained in the
table below:
Product safety
Employees
and customers
Inside and
outside of the
organization
Research,
development
and innovation
Shareholders
and customers
Inside and
outside of the
organization
Atmospheric
emissions
Society and
customers
Inside and
outside of the
organization
Health, safety
and well-being
Employees
Inside of the
organization
Natural resources
and waste
Shareholders
and society
Inside and
outside of the
organization
There are laws, regulations, and certifications that
require high standards for aviation safety. Besides, there
is a need of monitoring risks to ensure the perfect oper-
ation of aircraft, in order to prevent malfunctioning and
potential accidents that may affect customers (airline
companies) and employees of Embraer itself.
Staying on the edge of technology is a fundamental
condition to Embraer. Innovation enables the develop-
ment of highly competitive products with permeability in
international markets. The absence of it, both in products
and in company services, may lead to losses of the
Marketplace value.
Aviation produces around 2% of the global emissions
of CO2. Thus, the sector has responsibility in the fight
against climate change and its impacts on society. On the
other hand, less polluting aircraft may be preferential for
customers, especially in a scenario of new regulations for
emissions that have been rising around the world.
The human cost relative to health and accident problems
is the main negative consequence of not preventing risks.
Other costs involved (loss of time due to accidents and
illnesses, production interruption, employees replace-
ment, payment of overtime, recovery of employee health,
wages paid to employees on leave, etc.) can also affect
the profitability of the company. Employee well-being is
also directly related to talent retention and engagement,
which may directly impacts the company's performance.
The management of natural resources and waste is
essential for the company's efficiency, as well as for en-
suring the minimization and mitigation of impacts on the
environment and the community in which it is inserted.
In addition, the poor management of disposal and raw of
waste can lead to fines and loss of reputation regarding
to the organization's brand value. Also, it can potentially
affect the community, as it impacts the environment
quality and, consequently, the people's health.
Material Issue
Ethics, trans-
parency and
compliance
Responsible
area
Vice-Presidency
for Legal Affairs
Economic and
financial sus-
tainability
Vice-Presidency
for Financial
and Investors
Relations
Product safety
Vice-Presidency
for Engineering
Indicators
2020 target Management
90%
Employee
engagement
in Ethics and
Compliance
survey
Return on
Equity (ROE)
ROE > cost
of equity
100%
Risk analisys
within
the target
period/total
reportings
the area has
received
In addition to the climate research, Helpline
reports are also monitored, as well as the re-
sponses to the Ethics and Compliance research,
which generate action plans specifically to each
case. This theme is governed by the Anti-Cor-
ruption Policy and by the Code of Ethics and
Conduct, applicable to all Embraer units in Brazil
and abroad, as well as companies controlled by
the holding company.
The company's economic and financial perfor-
mance is accompanied by responsible areas,
with routine visibility to the Board of Directors
and quarterly market reports. Reports are sub-
mitted to CVM and SEC.
Embraer has the safety of its products as a
fundamental pillar for its business excellence and
sustainability. Aiming at achieving higher levels of
safety performance and sustaining the perception
of comfort and safety of the company's aircraft
users, Embraer promotes a proactive approach
to the life cycle of its products. This includes the
commitment to develop, implement, maintain
and constantly improve strategies to ensure
that Embraer continues to build safe products
that meet and exceed national and international
certification standards. For an efficient security
management strategy, it is necessary encouraging
reporting of observed risk situations, analyz-
ing these within appropriate time frames and
constructing indicators. The indicator defined
for Product Safety (percentage of product safety
related reports analyzed within the term excel-
lence references) reflects the essence of these
actions, which allows us to measure and monitor
the efficiency of the safety process.
41
Contents
103-2 – THE MANAGEMENT APPROACH AND ITS COMPONENTS |
103-3 – EVALUATION OF THE MANAGEMENT APPROACH
Material Issue
Responsible
Indicators
2020 target Management
Material Issue
Responsible
Indicators
2020 target Management
People
development
Vice-Presidency
for People and
Sustainability
Diversity and
Volunteering
Research, de-
velopment and
innovation
Vice-Presidency
for Engineering
Pre-com-
petitive
investment on
research and
technology
development
2% increase in women and afrodescendant
employees.
Leverage the number of volunteer positions to
equivalent 12% of Embraer employees.
1% of the
revenue.
Embraer created in 2017 the Embraer Business
Innovation Center (EBIC) in Melbourne, Florida
(USA).
Atmospheric
emissions
Vice-Presidency
for People and
Sustainability
tCO2e/net
revenue
-3% in com-
parison to
the base
year 2016.
Health, safety
and well-being
Vice-Presidency
for People and
Sustainability
Zero.
Lost Time In-
jury Frequency
Rate (LTIFR) for
employees and
third-parties
The targets are deployed for each Embraer unit
and monitored through the integrated quality
management system.
Those are supervised by the Environment, Health
and Safety Area, as well as monitored by the
Sustainability Area.
The theme is governed by the Environment,
Health and Safety Policy, applicable to all compa-
ny units and also to its controlled subsidiaries.
OHSAS Certi-
fication
Natural
resources
and waste
Vice-presidency
for People and
Sustainability
Water con-
sumption (m3/
net revenue)
Energy con-
sumption
Hazardous
waste gener-
ation (ton/net
revenue)
Non-hazard-
ous waste
generation
(ton/net
revenue)
ISO 14001
Certification
100%
certification
of manufac-
turing plants
and service
centers with
more than
100 people
(including
third-party
employees).
-2% in com-
parison to
the base
year 2016.
-5% in com-
parison to
the base
year 2016.
-3% in com-
parison to
the base
year 2016.
-2% in com-
parison to
the base
year 2016.
100% certi-
fication of
manufacturing
plants and
service cen-
ters with more
than 100 peo-
ple (including
third-party
employees).
The targets are deployed for each Embraer unit
and monitored through the integrated quality
management system.
Those are supervised by the Environment, Health
and Safety Area, as well as monitored by the
Sustainability Area.
The theme is governed by the Environment,
Health and Safety Policy, applicable to all compa-
ny units and also to its controlled subsidiaries.
42
Contents
ECONOMIC STANDARDS
GRI 201: ECONOMIC PERFORMANCE
201-1 – DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED
In 2017, the total added value to be distributed was R$5,546.2 million, equivalent to 27% of net rev-
enue. R$207.0 million were distributed to shareholders in interests on own capital and dividends;
R$3,342.8 million to employees; and R$559.6 million to the Federal and Municipal Governments
as taxes and contributions.
ADDED VALUE STATEMENT (AVS)
The AVS demonstrates the wealth generated by Embraer and its distribution to society segments,
which are represented by shareholders, employees, financial institutions and Government (mu-
nicipal, state and federal). The added value to be distributed totaled R$5,546.2 million and repre-
sented 27% of net revenue in 2017.
Consolidate (R$ million)
Revenue
Inputs acquired from third parties
Gross added value
Depreciation and amortization
Net added value produced by company
Added value received in transfer
Total added value distributable
Added value distribution
Personnel
Government (tax. fee and contributions)
Interest and rental
Interests on equity and dividends
Retained profits and losses for the financial year
Participation of non-controllers
2015
22,360.1
(16,364.1)
5,996.0
(1,073.3)
4,922.7
605.2
5,527.9
5,527.9
3,342.5
1,251.6
652.2
92.3
149.3
40.0
2016
23,416.0
(17,157.2)
6,258.8
(1,265.5)
4,993.3
739.9
5,733.2
5,733.2
3,557.0
592.7
991.7
174.0
411.4
6.4
2017
20,405.0
(14,337.2)
6,067.8
(1,085.6)
4,982.2
564.0
5,546.2
5,546.2
3,342.8
559.6
796.4
207.0
588.8
51.6
201-2 – FINANCIAL IMPLICATIONS AND OTHER RISKS AND OPPORTUNITIES DUE TO
CLIMATE CHANGE
Embraer's corporate governance includes a structured process of risk and opportunity man-
agement based on best market practices and methodologies applied by leading global consult-
ing companies. Corporate risk management is under the responsibility of the Risk and Internal
Controls Department, which reports directly to the Audit and Risk Committee (CAR). The Man-
agement advises the main executives by mapping, identifying, classifying and monitoring busi-
ness risks in all units. The results of this process have not indicated vulnerability to the compa-
ny on its substantial operational changes, revenues or expenses which involve risks relative to
changes in legislation, physical climate parameters or another aspect related to climate change.
The analysis carried out had considered, within a five year period, topics such as environmental
legislation in Brazil and other countries where Embraer operates, the European Union Emis-
sions Trading Scheme (EU ETS) and discussions on carbon taxation. The Brazilian environmen-
tal legislation does not impose strong demands through the theme (currently, the only require-
ment is the elaboration of a Greenhouse Gas inventory), and EU ETS determinations have low
impact to Embraer as part of the global aviation industry. No real threats to carbon taxation
have been identified.
In reference to the operations, the main manufacturing units are located in Brazil, which is a
country not susceptible to extreme natural phenomena, settled in regions with very low risks of
flooding or frost. The units overseas also present very low possibilities of risks and impacts. All
units follow Crisis Management guidelines to minimize the effects of contingencies.
201-3 – DEFINED BENEFIT PLAN OBLIGATIONS AND OTHER RETIREMENT PLANS
SCOPE OF THE RETIREMENT PLAN
The company offers the Embraer Prev – a private complementary retirement plan – to all employ-
ees in Brazil and some of its controlled subsidiaries. The participation is voluntary, as required by
national legislation. There is no restriction for employees to participate, however its time of ser-
vice in the company is considered for the purpose of redeeming the benefit. Similar benefits are
offered at Embraer's overseas units, according to the applicable conditions and market realities.
As sponsors, Embraer or its controlled subsidiaries deposit the same amount of monthly con-
tribution chosen by the participant – with a ceiling up to 8% of the wage. There is no charge on
monthly contributions to participants; they are funded entirely by the sponsors.
The Embraer Prev is a non-profit entity with independent management, board of directors and its
own fiscal and deliberative councils. In adition, this is exclusively directed to the administration
of the participants patrimony.
Retirement plan documentation:
• Embraer's Statutes Prev
• Regulation of the Embraer Complementary Retirement Plan Prev
• Participant Manual
https://embraerprev.com.br/
43
Contents
GRI 202: MARKET PRESENCE
GRI 203: INDIRECT ECONOMIC IMPACTS
202-1 – RATIOS OF STANDARD ENTRY LEVEL WAGE BY GENDER COMPARED TO LOCAL
MINIMUM WAGE
In Brazil, the minimum wage is established by the minimum from union category.
Country
Gender
Reference
2015
2016
2017
Local minimum
Brazil (R$)
Men
1,339.80
1,502.80
United
States (US$)
Women
Men
Women
Portugal (€)
Men
Women
France (€)
Men
Women
1,470.55
1,733.33
2,080.00
700.00
700.00
1,891.99
1,513.59
1,470.55
2,142.40
2,102.53
700.00
700.00
1,851.39
1,556.80
1,504.80
1,504.80
2,185.21
2,426.62
728.20
784.19
1,800.00
1,513.59
wage
937.001
1,430.002
649.833
1,480.274
Ratio
relation
(%)
161
161
153
170
112
121
122
102
(1) Minimum wage in Brazil.
(2) Minimum wage in the state of Florida, United States.
(3) Minimum wage in Portugal.
(4) Minimum wage in France.
Important operating units are those where Embraer is present and which have a significant amount of cash. The offices of Singapore,
China and the Netherlands were not considered.
202-2 – PROPORTION OF SENIOR MANAGEMENT HIRED FROM THE LOCAL COMMUNITY
Governance body
Total
Work in the country of origin (%)
Does not work in the country
Board of Executive
Officers
11
82
of origin (%)
18
203-1 – INFRASTRUCTURE INVESTMENTS AND SERVICES SUPPORTED
Embraer invested about R$20 million in the Embraer Institute and the Embraer Foundation, in 2017.
The initiatives are conducted aligned with public authority, local partners and committed volun-
teer employees. There is also an increasing participation of local communities in the definition of
strategic priorities through public consultations and opinion polls.
The Embraer Institute and the Embraer Foundation are governed by formal documentation ac-
cording to the country in which they operate. The documents are submitted to the public au-
thority and provide transparency and accountability for the organizations activities, as well as
regulation of the attributions of its Deliberative/Fiscal Councils and the Executive Board
GRI 205: ANTI-CORRUPTION
205-1 – OPERATIONS ASSESSED FOR RISKS RELATED TO CORRUPTION
The analysis of risks related to corruption is carried out through the due diligence process,
introduced in 2014 with the publication of Due Diligence Procedure. Since then, both new and
existing service providers attend to a reputational assessment undertaken by the Compliance
team, which includes searches in official databases and media about corruption involvement,
tax evasion, fraud, terrorism, etc. If no restrictions are found, the Compliance team issues a
certificate. There is a systemic lockout for payments from any suppliers that are not certified
by due diligence.
Regarding the number of certified suppliers between the end of 2013 and May 2014 – when the re-
quests for analysis were still made by e-mail –, there were 608 suppliers approved; between May
and December 2014 – when requests were made via the portal –, there were 1,107 more; in 2015,
2,704; in 2016, 5,164; and in 2017, 3,099 providers. In total, by 2016, there were 12,682 suppliers
and third parties certified.
Operation
Total number of operations
Percentage of operations
submitted to risk assessments
submitted to risk assessments
related to corruption
related to corruption
Due dilligence of suppliers
Due dilligence of sponsorships
Due dilligence of donations
Due dilligence of class entities
3,099
118
9
38
100
100
100
100
44
Contents
Risks
related to
corruption
Conflicts of inter-
est (improper or in-
correct payments
in order to obtain
favors)
Improper account-
ing (incorrect
records and/orpro-
visioning)
Improper commer-
cial discounts (ab-
sence of approval
or alteration of
prices)
Failure to observe
proper anti-corrup-
tion procedures in
the M&A process
Improper or
duplicated
payment (to
publicauthorities
and certifying
entities)
Bribery or improp-
er benefits (im-
properlyreceiving
or paying suppli-
ers, commercial-
representatives,
customers, public
authoritiesand
external entities)
Risk
assessment type
Qualitative
Qualitative
Actions for risks mitigation
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 implemented 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.
Qualitative
Qualitative
Qualitative
The Compliance team's carrying out of the due diligence analyses,
in addition 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 implemented 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 consultations made to the Compliance team.
205-2 – COMMUNICATION AND TRAINING ABOUT ANTI-CORRUPTION
POLICIES AND PROCEDURES
In 2017, Embraer provided training and conveyed information about anti-corruption policies
and procedures to all 36 professionals, members of its governance bodies – mostly located
in the Southeast Region.
Regarding to employees and other groups, the training and communication were carried out
as follows:
Functional
categories
Number of
Number of
Percentage of
Number of
Percentage of
employees in
employees who
employees who
trained
trained
each functional
were notified of
were notified
employees
employees
category
the anti-corrup-
of the
regarding an-
regarding an-
tion procedures
anti-corruption
ti-corruption
ti-corruption
and policies
procedures
Leaders
Non-leaders
1.052
16,714
985
16,546
and policies
94
99
985
16,546
94
99
Types of
trading
partners
Number of each type of
Number of suppliers
trading partner
which werenotified of the
anti-corruptionprocedures
3,003
96
and policies
3,003
96
Suppliers
Third parties
(commercial-
representatives,
law firms and
logisticsagents)
205-3 – CONFIRMED INCIDENTS OF CORRUPTION AND ACTIONS TAKEN
In 2017, the company recorded no cases of corruption.
45
Contents
ENVIRONMENTAL STANDARDS
In 2017, the unit in Jacksonville, U.S., was included.
GRI 302: ENERGY
302-1 – ENERGY CONSUMPTION WITHIN THE ORGANIZATION
Embraer manages the environmental indicators through the Integrated Occupational Health,
Safety and Environment System, with the Occupational Health, Safety and Environment Policy as
its main document. Its environmental guidelines related to this indicator are:
• To promote and enhance the development of technologies so that its products, processes
and equipment have less impact on the environment and people, in a sustainable manner.
• To promote the improvement of processes, facilities and equipment by encouraging energy
efficiency, ultimately mitigating risks and hazards, environmental aspects and impacts, and
consumption of natural resources.
• Consider the adoption of new energy sources, investing in the use of renewable energy.
Total consumption (MWh)
Non-renewable
fuels
Diesel/Brazil
Gasoline/Brazil
Aviation gasoline
Liquefied Petroleum Gas (GLP)
Natural gas
Aviation kerosene
TOTAL
Renewable
fuels
Hydrous ethanol
2015
734
209
21
12,693
35,313
70,448
119,418
2015
172
2016
736
319
0
12,087
31,805
102,113
147,060
2016
83
2017
625
411
1
1,536
39,576
118,579
160,727
2017
72
Electricity consumption
per unit (MWh)
Faria Lima
Botucatu
Évora
Eugênio de Melo
Gavião Peixoto
OGMA
EDE (ELEB)
Melbourne
Taubaté
Nashville
Fort Lauderdele
Sorocaba
Harbin*
Belo Horizonte
Beijing
São Paulo
Jacksonville
Brazil (Master Plan Units)
Brazil (ISO 14064 Certified Units)
2015
65,864
17,291
14,218
13,707
13,443
12,929
10,959
8,147
4,031
3,626
2.18
900
830
636
179
–
–
125,295
126,831
2016
62,472
15,683
16,021
15,32
15,601
13,326
10,987
13,299
4,264
4,853
3,232
925
0
612
183
111
–
124,327
125,975
2017
56,518
15.01
16.28
15,866
16,186
15,338
10,346
17,306
3,921
5,367
4,436
841
0
629
171
351
671
117,847
119,668
TOTAL
168.94
176,889
179,237
* Embraer Divisão Equipamentos (EDE, then ELEB).
In 2017, the unit in Jacksonville, U.S., was included.
The consumed non-renewable fuels include consumption at the units certified in ISO 14064 –
Part I concerning Scope 1 (SKJ, EGM, TTE, EDE – ELEB, BOT, GPX, BHZ, SOD and SPO). Therefore,
the consumption related to Embraer’s units abroad was not taken into account.
302-2 – ENERGY CONSUMPTION OUTSIDE THE ORGANIZATION
The reported amounts relate to the quantity of fuel consumed upstream, for the purchased goods
and services, transport and distribution, business trips and employee commuting categories.
Total consumption (MWh)
Non-renewable
fuels
Diesel/Brazil
Gasoline/Brazil
Liquefied Petroleum Gas (LPG)
Natural gas
Aviation kerosene
TOTAL
Consumo total (MWh)
Precursor group
Precursor
Renewable fuels
Hydrous ethanol
2015
31,188
4,174
24
34
81,042
116,462
2016
30,581
5,821
25
24
65,404
101,855
2017
27,646
5,093
24
-
48,953
81,716
2015
1,840
2016
2,233
2017
2,084
46
Contents
The consumed renewable fuels includes consumption at the units certified in ISO 14064 – Part I
concerning Scope 3 (SKJ, EGM, TTE, EDE – ELEB –, BOT, GPX, BHZ, SOD and SPO). Therefore, the
consumption related to Embraer's units abroad was not taken into account.
302-3 – ENERGY INTENSITY
In 2017, a total of 197 equivalent aircraft were produced – 20% less than in 2016. Therefore, there
was a significant increase when comparing the 2016 (500 MWh/equivalent aircraft) and 2017
indicators (598 MWh/equivalent aircraft).
Nevertheless, compared to the base year of 2014, the end result remained stable (1% decrease).
Despite the production decline, the development of new programs demanded higher level of en-
ergy consumption in 2017.
The analysis of energy consumption based on the company's net revenue was constant over the
past four years.
302-4 – REDUCTION OF ENERGY CONSUMPTION
All energy reduction projects are cataloged in an information sharing virtual environment.
The Corporate Environment, Health and Safety Policy foresees investment in the improvement of
processes, facilities and equipment with incentive to reduce hazards and risks, aspects, environ-
mental impacts and consumption of natural resources.
302-4 – REDUCTION OF ENERGY CONSUMPTION
Project
Improvements in lighting
Reduction in the consumption of compressed air
Exchange of compressors
Installation of photovoltaic panels
Replacement of vacuum pumps
TOTAL
Unit
EDE
EGM
SJK
TTE
BOT
EDE
SJK
SJK
Annual savings (MWh)
31
10
580
229
535
300
12
1,896
3,593
The gains of projects involving the improvement in lighting, exchange of compressors and
replacement of engines and vacuum pumps were estimated considering the power of the new
and old equipment.
For the project regarding economy of compressed gas in Botucatu, the estimated electricity sav-
ing was calculated considering the electricity used before and after its implementation, when
changes in habits were encouraged, and a compressed air consumption manager was installed.
The savings due to the installation of photovoltaic panels was directly measured, represent-
ing the amount of energy generated in December 2017, when the project was completed.
302-5 – REDUCTIONS IN ENERGY REQUIREMENTS OF PRODUCTS AND SERVICES
The development of the new E-Jets family focuses on improving efficiency. Besides the ex-
change of engines, there was a structural redesign of the aircraft, especially the wings, spe-
cially designed for each model.
As for fuel consumption, the E190-E2 (first to receive certification from regulatory agencies)
was 1.3% better than originally expected, representing an advance of 17.3% over the first gen-
eration E190. The E190-E2 thus becomes the most environmentally friendly aircraft in the
category, with the lowest external noise level and emissions.
Data from the other E2 family jets will be available after the certification process for each.
47
Contents
GRI 303: WATER
303-1 – TOTAL WATER COLLECTED BY SOURCE
Total water collected by source
Water sources
Surface waters, including wetlands,
rivers, lakes and oceans
Groundwater
Rainwater directly collected and stored by the organization
Wastewater from another organization
Municipal water supply or other
water supply companies
Quantity (m3)
2015
-
2016
-
2017
-
616,545
563,845
571,415
-
-
-
-
60,315
91,237
The SJK, EGM, EDE (ELEB) and GPX units are supplied by groundwater collected at the compa-
ny’s area. The Taubaté, Botucatu, Belo Horizonte and Sorocaba units in Brazil, and Évora, OGMA,
Fort Lauderdale, Nashville, Melbourne and Beijing abroad, use municipal water supply or water
supplied by other companies. In 2017, it was started to report the water consumption of the Jack-
sonville unit, in the United States. The reported values were based on direct measurements.
303-2 – WATER SOURCES SIGNIFICANTLY AFFECTED BY THE COLLECTION OF WATER
The company does not use any water source that is significantly affected.
344,268
503,066
320,174
303-3 – RECYCLED AND REUSED WATER
Total water collected
960,813
1,127,226
982,826
Total water
Total recycled and
Percentage of
Total water
Total recycled and
Percentage of
Total water
Total recycled and
Percentage of
2015
2016
2017
Site
SJK
EGM
TTE
EDE (ELEB)
GPX
BOT
EVO
FLL
BNA
MLB
BJS
BHZ
OGMA
SOD
JAX
Embraer Brazil
Embraer S.A.
used
reused water
recycled water
960,152
20,906
2
used
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
reused water
recycled water
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
used
359,162
128,862
27,557
54,963
69,800
77,708
60,726
28,891
2,011
7,317
2,190
4,236
122,887
2,168
269
724,456
948,747
The amounts related to recycled and reused water were estimated according to the consumption of equipment using recycled and reused water, and also according to the volume of the reservoir in which it is stored.
The total amount of water used is sum of the consumed water (GRI 303-1) and the recycled and reused water.
In 2017, the Jacksonville unit, in the United States, started collecting information. In 2017, the installation of the water reuse system was completed at the Steel Structures unit in Évora.
reused water
recycled water
5,280
0
8,422
29,952
6,140
0
3,800
0
0
0
0
0
3,564
0
0
49,794
57,158
1
0
31
54
9
0
6
0
0
0
0
0
3
0
0
7
6
48
Contents
305-1 – DIRECT GREENHOUSE GAS EMISSIONS – SCOPE 1
The reported amounts refer to the mobile combustion, stationary combustion, and fugitive emis-
sion categories.
Scope 1
Gas family
CH4
CO2
HFC
N2O
PFC
TOTAL
Gas
CH4
CO2
HFC
N2O
PFC-218
2015
11.68
28,164.26
3,053.97
171.43
0
2016
10.79
35,704.63
2,105.83
239.76
0
2017
10.36
39,104.41
3,138.49
271.08
18.99
31,401.34
38,061.01
42,543.33
Biogenic emissions (tCO2e)
2015
64.81
2016
48.11
2017
49.2
The values reported for Scope 1 emissions include units certified in ISO 14064 – Part I (SKJ, EGM,
TTE, EDE – ELEB –, BOT, GPX, BHZ, SOD and SPO), that is, they disregard the consumption re-
lating to overseas units.
The observed increase is mainly due to the consumption of aviation kerosene, which increased
due to the development and certification flights of the E2 and KC390 programs.
Management form: company’s policies and guidelines that assist in the management of
the indicator.
The company carries out its Greenhouse Gas (GHG) Emission Inventory, which is annually in-
spected and validated by a third party at ISO 14064 Part I. This and all correlated procedures are
defined and detailed in the corporate standard doc.emb 6968.
Embraer manages the environmental indicators by means of the Integrated Occupational Health,
Safety and Environment System, with the Occupational Health, Safety and Environment Policy as
its main document, which establishes the following guidelines:
• Prevention and response to pollution, respect to biodiversity, and the concern with
climate changes.
• Cooperate towards the development of sustainable products, processes, equipment, and al-
ternative fuels with lower emission of Greenhouse Gases.
305-2 – INDIRECT GREENHOUSE GAS EMISSIONS – SCOPE 2
Scope 2 (tCO2e)
Gas
CO2
TOTAL
GWP
1
2015
15,699.16
15,699.16
2016
10,217.33
10,217.33
2017
11,130.72
11,130.72
Scope 2 emissions were calculated considering the operational control, and exclusively repre-
sent the purchase of electricity. Despite the reduction in the electricity consumption the Scope
2 emissions increased due to the emission factor of the National Interconnected System, which
presented an increase of more than 10% between 2016 and 2017.
The methodology for calculating Scope 2 emissions based on the market in Brazil is under
development, and therefore, the same calculation methodology is adopted for the market and
location approaches.
The values reported for Scope 2 emissions include units certified in ISO 14064 – Part I (SKJ,
EGM, TTE, EDE – ELEB –, BOT, GPX, BHZ, SOD and SPO), that is, they disregard the con-
sumption relating to overseas units.
GWP: Global Warming Potencial.
305-3 – OTHER INDIRECT GREENHOUSE GAS EMISSIONS – SCOPE 3
The reported amounts relate to the emissions generated upstream for the purchased goods
and services, transport and distribution, business trips, employee commuting and residues
generated in operation categories.
GEE (tCO2e)
CO2
CH4
N2O
TOTAL
Gas
1
25
298
Biogenic emissions (tCO2e)
2015
1,086.24
2015
31,979.47
1,862.90
278.61
34,121
2016
1,348.55
2016
26,185.27
1,250.07
381.18
27,817
2017
20,736.68
1,169.86
322,93
22,229
2017
1,284.33
The values include the consumption at the units certified in ISO 14064 – Part I related to Scope 2
(SKJ, EGM, TTE, EDE – ELEB –, BOT, GPX, BHZ, SOD and SPO), that is, they do not consider the
consumption relating to overseas units.
The reduction in CO2 emissions is mainly due to the Business trips category, which was 23.6%
lower in comparison to 2016, and also the Purchased goods and services categories, which pre-
sented a decrease of 18.3% on the same bases.
49
Contents
305-4 – INTENSITY OF GREENHOUSE GAS EMISSIONS
Embraer calculates the intensity indicator of GHG emissions by adding the emissions from Scopes
1 and 2 against its net income. The target is to reduce 3% until 2017, using 2013 as a reference.
The indicator considers the emissions in Scope 1 regarding fugitive emissions, burning of fuels
other than aviation kerosene (QAV) and burning of QAV in production flights (airplanes in the cur-
rent portfolio). It does not consider the emissions of development flights and certification of new
products, nor aircraft in the Defense and Security business unit. In this way, the 2017 indicator
presented 12% reduction when compared to 2013.
All gases listed in Scopes 1 and 2 were considered in the calculation of the indicator.
305-7 – EMISSIONS OF NOX, SOX AND OTHER SIGNIFICANT ATMOSPHERIC EMISSIONS
For all production processes involving stationary sources of atmospheric pollutants, Embraer
adopts effective emission control systems, considering the best technology available on the market.
Embraer manages the indicators through the Integrated Occupational Health, Safety and Environ-
ment System, whose primary document is the Occupational Health, Safety and Environment Policy.
Its environmental guidelines related to energy consumption are:
• To promote and enhance the development of technologies so that its products, processes
and equipment have less impact on the environment and people, in a sustainable manner.
305-5 – REDUCTION OF GREENHOUSE GAS EMISSIONS
Embraer continuously invests in eco-efficiency projects, seeking the reduction of the consump-
tion of resources and the increase of the efficiency in its processes. In 2017, several projects have
been implemented that contributed to reducing GHG emissions, especially related to Scope 2,
due to the decrease in the consumption of electricity.
Emissions in tons
Categories
NOx
SOx
2015 (tCO2e)
2016 (tCO2e)
2017 (tCO2e)
Volatile Organic Compounds (VOC)
Persistent Organic Pollutants (POP)
Particulate Matter (PM)
Reductions
Process redesign – Scope 1
Equipment modernization
conversion – Scope 2
Equipment modernization
conversion – Scope 1
Changes in employee behavior
98
239
0
0
0
185
0
19
263
306
0
28
305-6 – EMISSIONS OF SUBSTANCES THAT DEPLETE THE OZONE
Embraer has a program to replace the ozone layer-depleting refrigerant gases by others with lower
environmental impact, such as HCFC-407a and HCFC-404a.
The data reported in the following table is related to the amount of imported ozone layer-deplet-
ing substances.
Precursor
ODP (tCFC-11E/ton
2015 (ton)
2016 (ton)
2017 (ton)
HCFC-22
HCFC-141b
TOTAL
gas)
0.055
0.11
-
0.08
0.03
0.11
0.04
0.02
0.06
0.07
0.02
0.08
Emissions in tons of CFC-11 equivalent calculated through the Ozone Depleting Potential
(ODP), as adopted by the Montreal Protocol. Values obtained from
http://www.epa.gov/ozone/science/ods/index.html.
2015
2016
97
2
0
20
26
91
2
0
7
19
2017
68
0.5
0
13
20
The reported amounts refer to the SJK, EGM, EDE (ELEB), GPX and BOT productive units. The
technical standards of the Environmental Company of the State of São Paulo (Cetesb) and the
Environmental Protection Agency (EPA) are adopted for the calculations. At the facilities, the
atmospheric emissions originating from stationary sources are monitored on an annual basis
or as requested from the local environmental agency, according to internal procedure doc.emb
2314 and the Atmospheric Emission Monitoring Plan (PMEA). The PMEAs identify all stationary
sources installed, the analyzed parameters and the pollution control systems. The following
emissions are monitored: Particulate Matter, Volatile Organic Compounds, Nitrogen Oxides,
Sulfur Oxides and Carbon Monoxide. The emissions, measured in mg/Nm3, are converted to
ton/year to verify if they have not exceeded the thresholds set forth in the legislation. The re-
sults are filed at the local environmental agency and have not exceeded the threshold, and
therefore, no compensation project is required.
The emissions of volatile organic compounds were significantly reduced in recent years due to the
installation of robots on the main paint booths, which decreased the amount of paint used on the
aircraft. In addition, the improvements on the control procedures for calculating the emissions.
50
Contents
GRI 306: WASTEWATER AND SOLID WASTE
306-2 – TOTAL RESIDUAL WEIGHT, BROKEN DOWN BY DISPOSAL TYPE AND METHOD
306-1 – TOTAL DISPOSAL OF WATER, BROKEN DOWN BY QUALITY AND DESTINATION
The company establishes robust internal procedures for the management of the topic, available
in its internal system (doc.emb), among which, Procedure 1805 – Treatment of Domestic and In-
dustrial Wastewater, which establishes procedures for the management of services relating to the
domestic and industrial wastewater treatment stations.
The indicators are managed through the Integrated Occupational Health, Safety and Environment
System, supported mainly by the Occupational Health, Safety and Environment Policy. The envi-
ronmental guidelines related to the generation of wastewater are:
• Compliance with legal, environmental, health, safety, fire prevention and emergency require-
ments applicable to the company’s business.
• Prevention and response to pollution, respect to biodiversity, and the concern with cli-
mate changes.
• Promotion and enhancement of the development of technologies, so that its products, pro-
cesses and equipment cause an impact on the environment and people.
Total water disposal, broken down by quality and destination
Total volume
of water
disposal (m3)
2015
2016
2017
Treatment
Destination
Domestic
373,299
291,422
265,938
SJK
EGM
GPX
TTE
164,318
153,752
148,434
56,970
48,270
35,545
Primary treatment –
screening
Primary treatment –
screening
Public sewage
collection network
Public sewage
collection network
34,465
34,319
35,380
Anaerobic treatment
Local stream
13,311
12,440
11,852
Aerobic treatment
Local stream
OGMA
104,165
42,641
34,727
Biological treatment
Industrial
116,129
108,047
100,040
SJK
BOT
EGM
GPX
25,690
24,619
20,622
37,670
28,918
30,179
4,200
3,540
2,760
827
577
555
EDE (ELEB)
4,714
3,699
2,840
OGMA
19,562
19,530
19,388
EVO
23,466
27,164
23,696
Physical-chemical
treatment
Physical-chemical
treatment
Physical-chemical
treatment
Physical-chemical
treatment
Physical-chemical
treatment
Physical-chemical
treatment
Physical-chemical
treatment
Public sewage
collection network
Public sewage
collection network
Public sewage
collection network
Public sewage
collection network
Local stream
Public sewage
collection network
Public sewage
collection network
Public sewage
collection network
2015
2016
2017
Disposal method
Not
dangerous
(ton)
Dangerous
(ton)
Total
(ton)
Not
dangerous
(ton)
Dangerous
(ton)
Total
(ton)
Not
dangerous
(ton)
Dangerous
(ton)
Total
(ton)
Sanitary landfill
Incineration
Composting
Coprocessing
Decontamination
Sterilization
Recycling
Recovery
Sewage treatment
Physical-chemical
treatment
1,408
2,009
1,408
374
1,008
9
0
0
0
12
0
386
1,008
1,091
1,100
0
0
0
0
394
867
12
0
0
12,284
113
12,397
12,454
2,490
2,217
695
29
758
128
4,707
1,453
157
846
679
23
Industrial landfill
0
30
30
0
0
28
0
977
1
1
97
2,009
2,147
422
867
989
1
1
42
690
695
0
0
12,551
11,476
2,080
2,926
1,479
2,158
118
27
141
27
0
316
0
0
0
21
0
2,147
63
690
923
1,618
0
1
41
0
1
11,517
2,132
2,132
0
0
0
316
0
0
Total
18,297
4,349
22,646
17,284
4,808
22,092
15,366
3,119
18,484
The data reported in the table represent the waste generated in the Brazilian production units
(Faria Lima, Eugênio de Melo, Taubaté, Embraer Equipment Division, Botucatu and Gavião
Peixoto) and the United States units (Melbourne, Nashville and Fort Lauderdale), and meth-
ods of disposal given to them is directly confirmed by the organization.
With regard to waste generated in the units of Portugal (Évora and OGMA), the information
is provided by the company contracted for the management of waste, of which, for hazard-
ous waste, 2,900 tons are subject to disposal processes and to 133 recovery processes. For
non-hazardous waste, 498 tonnes are subject to disposal and 2,881 tonnes are recovered.
306-3 – SIGNIFICANT LEAKS
In 2017, the company had no registered cases of significant leaks.
51
Contents
308-2 – SIGNIFICANT NEGATIVE ENVIRONMENTAL IMPACTS ON THE SUPPLIER CHAIN
AND MEASURES ADOPTED
Most of the supplier base has undergone some type of assessment related to the Risk Assess-
ment or Due Diligence (REACH) processes.
SOCIAL STANDARDS
GRI 401: EMPLOYMENT
401-1 – HIRING OF NEW EMPLOYEES AND TURNOVER
The hiring and retaining of people at the company must be based on equity regarding color, gen-
der, race, nationality, social position, religion, marital status and physical characteristics, respect-
ing the exceptions set forth in the current legislation or the specific requirements of the jobs.
Total number of employees and turnover by
age group, gender and region
2017
Country
Age group
Men
Women
Grand total
Brazil
Under 30
Between 30 and 50
Over 50
Under 30
Between 30 and 50
Over 50
Under 30
Between 30 and 50
Over 50
Under 30
Between 30 and 50
Over 50
TOTAL
China
TOTAL
France
TOTAL
Portugal
TOTAL
Netherlands
Under 30
Between 30 and 50
Over 50
TOTAL
Singapore
Under 30
Between 30 and 50
Over 50
Under 30
Between 30 and 50
Over 50
TOTAL
USA
TOTAL
GRAND TOTAL
Total
108
452
239
799
0
6
0
6
9
6
1
16
26
26
0
52
1
3
1
5
0
3
2
5
133
98
41
272
1,155
%
0.59
2.45
1.30
4.33
0.00
0.03
0.00
0.03
0.05
0.03
0.01
0.09
0.14
0.14
0.00
0.28
0.01
0.02
0.01
0.03
0.00
0.02
0.01
0.03
0.72
0.53
0.22
1.48
6.27
Total
35
110
25
170
0
3
0
3
2
1
0
3
2
14
0
16
2
0
0
2
1
2
0
3
27
17
9
53
250
%
0.19
0.60
0.14
0.92
0.00
0.02
0.00
0.02
0.01
0.01
0.00
0.02
0.01
0.08
0.00
0.09
0.01
0.00
0.00
0.01
0.01
0.01
0.00
0.02
0.15
0.09
0.05
0.29
1.36
Total
143
562
264
969
0
9
0
9
11
7
1
19
28
40
0
68
3
3
1
7
1
5
2
8
160
115
50
325
1,405
%
0.78
3.05
1.43
5.26
0.00
0.05
0.00
0.05
0.06
0.04
0.01
0.10
0.15
0.22
0.00
0.37
0.02
0.02
0.01
0.04
0.01
0.03
0.01
0.04
0.87
0.62
0.27
1.76
7.62
52
Contents
401-1 – HIRING OF NEW EMPLOYEES AND TURNOVER
Total number of employees and turnover by
age group, gender and region
2017
Country
Age group
Men
Women
Grand total
401-2 – BENEFITS GRANTED TO FULL-TIME EMPLOYEES THAT ARE NOT EXTENDED TO
TEMPORARY OR PART-TIME EMPLOYEES
All full-time employees have benefits that include life insurance, health insurance, disability and
incapacity allowance, maternity/paternity leave, and pension fund.
Brazil
Under 30
Between 30 and 50
Over 50
Under 30
Between 30 and 50
Over 50
Under 30
Between 30 and 50
Over 50
Under 30
Between 30 and 50
Over 50
TOTAL
China
TOTAL
USA
TOTAL
France
TOTAL
Netherlands
Under 30
Between 30 and 50
Over 50
Under 30
Between 30 and 50
Over 50
TOTAL
Portugal
TOTAL
Singapura
Under 30
Between 30 and 50
Over 50
TOTAL
GRAND TOTAL
Total
369
209
9
587
1
2
0
3
129
220
67
416
0
1
0
1
0
4
1
5
41
29
0
70
1
4
3
8
1,090
%
2.00
1.13
0.05
3.18
0.01
0.01
0.00
0.02
0.70
1.19
0.36
2.26
0.00
0.01
0.00
0.01
0.00
0.02
0.01
0.03
0.22
0.16
0.00
0.38
0.01
0.02
0.02
0.04
5.91
Total
126
69
0
195
4
3
0
7
27
40
22
89
1
2
1
4
0
1
0
1
11
12
0
23
0
1
0
1
320
%
0.68
0.37
0.00
1.06
0.02
0.02
0.00
0.04
0.15
0.22
0.12
0.48
0.01
0.01
0.01
0.02
0.00
0.01
0.00
0.01
0.06
0.07
0.00
0.12
0.00
0.01
0.00
0.01
1.74
Total
495
278
9
782
5
5
0
10
156
260
89
505
1
3
1
5
0
5
1
6
52
41
0
93
1
5
3
9
1.410
%
2.69
1.51
0.05
4.24
0.03
0.03
0.00
0.05
0.85
1.41
0.48
2.74
0.01
0.02
0.01
0.03
0.00
0.03
0.01
0.03
0.28
0.22
0.00
0.50
0.01
0.03
0.02
0.05
7.65
401-3 – MATERNITY/PATERNITY LEAVE
Eligible – leave
Total eligible
Took the leave
Returned to work
Returned to work (+12 months)
Percentage of return
Paternity
Maternity
Total Geral
15,486
2,947
18,433
581
576
576
99
132
118
118
89
713
694
694
97
GRI 403: OPERATIONAL HEALTH AND SAFETY
Since 1971, all Embraer’s industrial units in Brazil have Internal Accident Prevention Commissions
(Cipa), with the number of members established by NR-05 – regulatory standard from the Ordi-
nance No. 3,124/78 from the Ministry of Labor (MTE, in Portuguese). Cipa is composed of employ-
ee representatives elected in a secret voting session once a year, along with the representatives
appointed by the employer, in the same proportion. The coordination is the responsibility of its
President, who is appointed by the company. The Vice-President is chosen by the elected and
assigned employees. The Commission meets at least once a month to discuss issues related to
the health and safety of employees, recording the meeting in minutes which are then sent to the
unions. Once a year, the Cipa organizes a week dedicated to the prevention of accidents, during
which several activities are carried out, involving all the employees.
Embraer seeks excellence in its occupational health and safety performance, a topic considered
essential internally. Therefore, it holds continuous educational and preventive actions guided by
the MASS (Occupational Health, Safety and Environment) Policy, with a global reach. This is a
guidance to set targets connected to the company’s business excellence criteria.
In order to establish the accident reduction targets, it adopts the best and most recognized global
parameters as a reference, using for this end the Dow Jones Sustainability Index (DJSI), which is
listed for the eighth consecutive year.
The largest manufacturing units have the OHSAS 18001 international certification for 16 years,
having implemented all tools provided in this requirement. Through the five Health and Safety
Golden Rules, the company establishes ongoing communication with all employees, visitors and
contractors, guiding them on preventive attitudes both inside and outside the organization.
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Contents
Embraer maintains and develops programs focused on reducing accidents and improving the
work environment conditions. They include continuous and preventive actions, such as Edu-
cational and Communication Action Plan, Behavioral Program, Embraer Occupational Tension
Rebalancing Program (Perto) and Ergonomic Risk Management, in addition to holding accident
prevention methodology (Prevention Through Design).
403-1 – REPRESENTATIVENESS OF WORKERS IN FORMAL HEALTH AND
SAFETY COMMITTEES
Name of the formal health and safety committee made
up of employees from different hierarchical levels
Level at which it operates within the organization
Internal Accident Prevention Commission (Cipa)
Brazil – at all hierarchical levels in the organization
Total workforce
Workforce represented in formal
health and safety committees
consisting of employees from
different hierarchical levels in the
organization
Percentage of the workforce
represented in formal health and
safety committees consisting
of employees from different
hierarchical levels in the
organization
403-2 – TYPES AND RATES OF INJURIES, OCCUPATIONAL DISEASES, LOST DAYS,
ABSENTEEISM, AND NUMBER OF WORK-RELATED DEATHS
Lost-time accidents to the total number of workers (own employees)
Region
Women
Men
Total
South America (Brazil)
North America (United States)
EMEA (Europe, Middle East and Africa)
Asia
GRAND TOTAL
2
0
2
0
4
21
8
0
0
29
23
8
2
0
33
Lost-time accidents to the total number of workers (outsourced employees)
Region
Women
Men
Total
South America (Brazil)
North America (United States)
EMEA (Europe, Middle East and Africa)
Asia
GRAND TOTAL*
0
0
1
0
1
15
0
2
0
17
15
0
3
0
18
18,290*
15,568
85.12
* The amount of lost-time accidents includes death.
* Global workforce in 2017 – headquarters and branches. The data has a global scope, as described in the workforce representation, and
does not include the affiliates.
Rate of lost-time accident to the total number of workers (own employees)
Region
South America (Brazil)
North America (United States)
EMEA (Europe, Middle East and Africa)
Asia
GRAND TOTAL
Total
employees
15,568
1,942
655
125
18,290
Women + men
Number
of injuries
Percentage
of injuries
23
8
2
0
33
0.82
2.29
1.69
0
0.99
Rate of lost-time accidents to the total number of workers (outsourced employees)
Region
South America (Brazil)
North America (United States)
EMEA (Europe, Middle East and Africa)
Asia
GRAND TOTAL
Total
employees
5,175
0
127
11
5,313
Women + men
Number
of injuries
Percentage
of injuries
15
0
3
0
18
1.16
0
13.54
0
1.37
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Contents
Rate of occupational diseases to the total number of workers (own employees)
Rate of lost days (accidents + diseases) to the total workers (outsourced employees)
Region
South America (Brazil)
North America (United States)
EMEA (Europe, Middle East and Africa)
Asia
GRAND TOTAL
Total
employees
15,568
1,942
655
125
18,290
Women + men
Number
of injuries
Percentage
of injuries
Region
1
0
0
0
1
0.03
South America (Brazil)
0
0
0
North America (United States)
EMEA (Europe, Middle East and Africa)
Asia
0.03
GRAND TOTAL
Total
employees
5,175
0
127
11
5,313
Women + men
Number of
lost days
165
0
136
0
301
Rate of
lost days
12.79
0
613.66
0
22.91
Rate of occupational diseases to the total number of workers (outsourced employees)
Region
Total
employees
Women + men
Number
of injuries
Percentage
of injuries
Absenteeism rate to the total number of workers (own employees): not available.
Absenteeism rate to the total number of workers (outsourced employees): not provided by
the companies
South America (Brazil)
5,175
Not available
Not available
Region
North America (United States)
EMEA (Europe, Middle East and Africa)
Asia
GRAND TOTAL
0
127
11
Not available
Not available
Not available
Not available
Not available
Not available
5,313
Not available
Not available
Rate of lost days (accidents + diseases) to the total workers (own employees)
Region
South America (Brazil)
North America (United States)
EMEA (Europe, Middle East and Africa)
Asia
GRAND TOTAL
Total
employees
15,568
1,942
655
125
18,290
Women + men
Number of
lost days
638
119
20
0
777
Rate of
lost days
22.67
34.00
16.93
0
23.49
Total workforce deaths
Deaths of outsourced
(permanent employees)
parties working on site
Women + men
(outsourced)
Women + men
South America (Brazil)
North America (United States)
EMEA (Europe, Middle East and Africa)
Asia
GRAND TOTAL
0
0
0
0
0
0
0
0
0
0
Note:
1. Data for self-employed personnel is not applicable.
2. For tables that require separation by gender, the information was only possible for those presenting absolute values. This separation was
not possible for tables using rates since our system does not segregate the man-hour worked information by gender in some countries.
3. The data has a global scope, and does not include the affiliates.
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Contents
403-3 – EMPLOYEES WITH HIGH INCIDENCE OR HIGH RISK OF DISEASES RELATED TO
THEIR OCCUPATION
There are no employees involved in occupational activities presenting high incidence or high risk
of specific diseases.
Based on its health and safety policy, the company holds preventive and treatment actions
focusing on occupational health, quality of life and the well-being of its employees, family
members and trainees. They are developed from the epidemiological profile, arising from the
regular medical check-up. Among the actions, the Estar de Bem Program is worth emphasizing,
which aims to contribute to improvements in the quality of life and well-being through the encour-
agement and the provision of conditions that lead to healthy habits. The following initiatives are
part of the program:
Estar de Bem sem o Cigarro (Being Well Without Smoking): has the purpose of providing spe-
cialized treatment to those who wish to quit smoking, combining medication and psychological
support. The company pays 100% of the treatment.
Estar de Bem sem Drogas (Being Well without Drugs): encompasses prevention and support
actions in the outpatient or of hospitalization, of chemical dependence. Comprises specialized
treatment for drug addicts and their family (codependence), as well as support and guidance to
the manager. It also includes drug testing, early diagnosis for drug addiction to recover the addict
and his reinsertion in the work and social environment.
Estar de Bem com a Maternidade (Being Well with Motherhood): action to support mothers and
fathers through the possibility of extending the maternity leave from 120 to 180 days; extension of
paternity leave from five to 20 days; on-site or online pregnant women courses; pregnant women
booklet; psychological support to the mother for better adaptation to work upon return from mater-
nity leave; absence allowance once a month for mothers with children with disabilities aged up to
12-years’ old; absence allowance for up to two days for fathers who wish to accompany the medical
appointments and complementary examinations during the pregnancy term of their companions;
absence allowance once a year for parents to accompany children aged up to 6-years’ old in medi-
cal appointments; absence allowance once a year in the case of hospitalization of child or spouse;
daycare assistance for 18 months after the mother returns to work; vaccine benefit.
Estar de Bem com Você (Being Well with Yourself): includes several actions aiming to improve
the health of employees with obesity, overweight and/or chronic diseases such as hypertension,
cholesterol, dyslipidemia, diabetes and heart diseases. The actions include, among others:
• Since 2013, employees are seen by a multidisciplinary team (physician, dietitian and psy-
chologist). After the medical or nursing screening, the employees are referred to nutritional
care within the company. For better adhesion to the therapeutic proposal, if re-quired, the
employee may also be referred to in-company psychological care with the duration of six to
12 months, depending on each case.
• Care to employees with cardiovascular diseases: provision of guidance and monitoring for
cardiac rehabilitation through follow-up with cardiologist on a one-to-one basis, seeking re-
integration to routine activities.
Estar de Bem com a Atividade Física (Being Well with Physical Activity): provides stimulating
actions and facilitating means to the practice of physical activities and sports, in partnership with
Associação Desportiva Embraer (ADCE), where several physical activity modes are developed,
such as Academia 30’, which aims at general fitness, simultaneously developing aerobic capacity
and muscular resistance, and street running.
Cycle of Lectures: promotes the dissemination of topics such as quality of life, prevention and
promotion of health in an ideal environment for raising awareness, providing guidance and re-
flecting on the attitudes.
Minuto Estar de Bem (Being Well Minute): weekly newsletter sent by email and published on
the intranet with quick and objective texts, providing guidance and tips to encourage healthy
habits and the search for quality of life.
Vaccination Program: focusing on prevention, Embraer’s Vaccination Program is extended to all
employees and their direct family members. The company participates with 80% on the costs of
the vaccines not provided by the Government and referred to by the Federal Council of Medicine.
There are also collective vaccination campaigns, such as against influenza, where Embraer spon-
sors 100% of the cost to the employees and 80% of the costs to direct family members.
PERTO (Embraer’s Occupational Tension Rebalance Program): preventive program for muscu-
lar conditioning in the spiking, sanding, laminating, machining and painting activities. This pro-
gram generates physical, psychosocial and productive benefits to the company. PERTO has been
distinguished by being a pioneer in using occupational biomechanics concepts, including the
analysis of human movement in the work station, and allowing to assess the biomechanical risks
in the productive process.
Assistance for family members with disabilities: health plan to disabled direct family mem-
bers, including: coverage even after reaching 21 years old, and differentiated participation in treat-
ments such as speech therapy, occupational therapy and psychotherapy.
403-4 – TOPICS RELATED TO HEALTH AND SAFETY COVERED BY FORMAL
UNION AGREEMENTS
In 2017, 12 agreements were signed with unions that cover safety and health issues, such
as personal protective equipment; leadership and employee health and safety committees;
participation of workers' representatives in safety and health surveys and accident audits;
training and education; and system of complaints and periodic surveys. All agreements con-
templated the themes mentioned above.
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Contents
GRI 404: TRAINING AND EDUCATION
404-1 – AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE
Employee category
Total
Total employees –
Total employees –
employees (unit)
women (unit)
men (unit)
Board
Manager
Supervisor
Pilot
Engineer
Professional*
Technician
Administrative
Operational
TOTAL
92
297
709
95
4,209
2,685
3,266
745
6,335
18,433
7
43
91
0
589
1,078
329
316
494
2,947
85
254
618
95
3,620
1,607
2,937
429
5,841
15,486
* Professional: develops analysis, development and technical application activities in treating information, specific interpretations
requiring the holder to have higher education degree.
Employee Category
Board
Total workload
Total employees in the category
Hours per employee in the category
Manager
Total workload
Total employees in the category
Hours per employee in the category
Supervisor
Total workload
Total employees in the category
Hours per employee in the category
Pilot
Total workload
Total employees in the category
Hours per employee in the category
Engineer
Total workload
Total employees in the category
Hours per employee in the category
Professional
Total workload
Total employees in the category
Hours per employee in the category
Technician
Total workload
Total employees in the category
Hours per employee in the category
Administrative
Total workload
Total employees in the category
Hours per employee in the category
Operational
Total workload
Total employees in the category
Hours per employee in the category
TOTAL
Total workload
Total de colaboradores
Horas por colaboradores
Men
1,041
85
12
7,942
254
31
17,843
618
29
985
95
10
126,639
3,620
35
27,516
1,607
17
103,337
2,937
35
8,239
429
19
231,421
5,841
40
524,962
15,486
34
Women
330
7
47
738
43
17
2,149
91
24
0
0
0
19,070
589
32
22,759
1,078
21
13,520
329
41
4,488
316
14
16,509
494
33
79,563
2,947
27
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Contents
404-2 – EMPLOYEE KNOWLEDGE IMPROVEMENT PROGRAMS AND CAREER TRANSI-
TION PROGRAMS
In 2017, the Voluntary Dismissal Program started in 2016 was closed. In order to support the pro-
fessionals who have joined the program, Embraer offered the Career Transition Support Program,
which aims to guide the employee who left the company in the planning of the new stage in his life.
Under the initiative, two lectures (SJC and GPX) were held. Each of them with four hours, provid-
ing support and guidance from the Social Security (INSS, in Portuguese) to employees who are
about to retire.
404-3 – PERCENTAGE OF EMPLOYEES WHO REGULARLY RECEIVE CAREER DEVELOP-
MENT AND PERFORMANCE ANALYSES
Assessment
The employee skill assessment process took place between April and July 2017. The supervisors’
assessment took place in May 2017.
Leadership
Aims to establish development actions, promote a high performance culture, generate support
for career development and succession planning. In order to do so, a 360° assessment is used, as
well as Performance Map and Calibration Committee. All leadership levels at the Company are
assessed, including the CEO. The leadership assessment process (Managers and Directors) was
postponed to the first quarter of 2018.
Employee category
Total employees –
Number of women who
Percentage of women
women (unit)
receive regular career
who receive regular
development and
career development and
performance assessment
performance assessment
Board
Manager
Supervisor
Pilot
Engineer
Professional
Technician
Administrative
Operational
TOTAL
7
43
91
0
589
1,078
329
316
494
2,947
0
0
72
0
500
756
212
192
300
2,032
0
0
79
0
85
70
64
61
61
69
Employee category
Total employees –
Number of women who
Percentage of women
men (unit)
receive regular career
who receive regular
development and
career development and
performance assessment
performance assessment
Board
Manager
Supervisor
Pilot
Engineer
Professional
Technician
Administrative
Operational
TOTAL
85
254
618
95
3,620
1,607
2,937
429
5,841
15,486
0
0
600
73
3,237
982
1,868
303
4,131
11,194
0
0
97
77
89
61
64
71
71
72
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Contents
GRI 405: DIVERSITY AND EQUAL OPPORTUNITIES
405-1 – DIVERSITY OF GROUPS RESPONSIBLE FOR GOVERNANCE AND
AMONG EMPLOYEES
Governance Entity
Board of Directors
Board
Total
11
11
Women (%)
Men (%)
18
9
82
91
Governance Entity
Total
Under 30 (%)
Between 30 and
Older than
Board of Directors
Board
Employees by
functional category
Board
Manager
Supervisor
Pilot
Engineer
Professional
Technician
Administrative
Operational
GRAND TOTAL
Employees by
functional category
Board
Manager
Supervisor
Pilot
Engineer
Professional
Technician
Administrative
Operational
GRAND TOTAL
11
11
0
0
50 (%)
50 (%)
0
27
100
73
Total
Under 30 (%)
Between 30 and
Older than
50 (%)
50 (%)
92
297
709
95
4,209
2,685
3,266
745
6,335
18,433
0
0
1
1
17
18
21
30
17
17
46
68
81
42
73
71
63
58
78
72
54
32
18
57
10
12
15
12
5
11
Total
Women (%)
Men (%)
92
297
709
95
4,209
2,685
3,266
745
6,335
18,433
8
14
13
0
14
40
10
42
8
16
92
86
87
100
86
60
90
58
92
84
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Contents
405-2 – CORRELATION BETWEEN MINIMUM WAGE AND COMPENSATION BETWEEN WOMEN AND MEN
Correlation between minimum wage and compensation
between women and men by category and location
Average salary paid (local currency)
Brazil
Administrative
Engineer
Leader
Operational
Pilot
Professional
Technician
TOTAL
China
Administrative
Engineer
Leader
Pilot
Professional
TOTAL
USA
Administrative
Engineer
Leader
Operational
Pilot
Professional
Technician
TOTAL
France
Administrative
Engineer
Leader
Operational
Professional
Technician
TOTAL
0.87
0.88
0.91
0.86
-
0.87
0.70
0.91
-
-
0.32
-
0.55
0.42
1.06
0.90
0.92
1.04
-
0.79
0.88
0.93
0.89
-
-
1.07
0.95
1.09
1.01
3,677
10,499
16,093
4,143
7,725
4,353
7,332
20,542
34,903
19,620
24,010
3,678
6,257
9,939
3,572
5,823
3,997
5,251
3,212
3,376
2,654
3,537
2,755
3,254
4,243
11,868
17,732
4,827
26,930
8,846
6,210
8,041
28,530
109,043
107,192
35,702
57,162
3,473
6,958
10,816
3,428
9,070
7,379
4,541
5,660
3,596
6,316
2,481
3,719
2,518
3,221
Correlation between minimum wage and compensation
between women and men by category and location
Country
Category
Ratio
Netherlands
Administrative
Engineer
Leader
Operational
Pilot
TOTAL
Portugal
Administrative
Engineer
Leader
Operational
Professional
Technician
TOTAL
Singapore
Administrative
Leader
Professional
Technician
TOTAL
GRI 406: NON-DISCRIMINATION
0.73
0.87
0.98
-
0.76
0.67
-
0.87
0.45
0.97
0.93
0.41
0.89
1.06
0.72
0.82
0.50
0.65
Average salary paid (local currency)
Women
3,611
4,929
10,500
5,035
4,639
1,179
1,951
2,789
857
2,127
1,044
1,330
3,746
11,119
7,043
3,710
6,520
Men
4,966
5,685
10,762
6,564
6,619
6,961
2,252
6,258
880
2,297
2,569
1,501
3,537
15,354
8,587
7,440
9,967
406-1 – DISCRIMINATION INCIDENTS AND CORRECTIVE MEASURES ADOPTED
The Helpline received no reports of incidents connected to discrimination during the assessed period.
GRI 412: HUMAN RIGHTS ASSESSMENT
412-2 – EMPLOYEE TRAINING ON POLICIES AND PROCEDURES RELATED
TO HUMAN RIGHTS
In 2008, Embraer formally joined the United Nations Global Compact, which aims to mobilize
the international business community to adopt basic human rights and anti-corruption values
in business practices, labor relations and environmental protection matters. The company also
collaborates with the Sustainable Development Goals (SDG), from the United Nations. Embraer
believes and puts into action the principles for multinational corporations and social policies
(established by the International Labor Organization), as well as the Organization for Economic
Cooperation and Development (OECD) Guidelines for Multinational Enterprises, which may be
noted in business practices, corporate values and company's management transparency.
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Contents
412-2 – EMPLOYEE TRAINING ON POLICIES AND PROCEDURES RELATED TO HUMAN RIGHTS
Country
Number of hours
Total number of hours
Percentage of hours
dedicated to training
dedicated to training in
dedicated to training in
employees (unit)
policies or procedures
policies or procedures
related to human rights
related to human rights
South Africa
Brazil
China
United States
United Arab Emirates
France
Netherlands
Portugal
Mexico
United Kingdom
Singapore
TOTAL
10
547,816
409
51,015
4
65
1,214
3,519
25
97
349
604,515
(unit)
0
582
69
178
0
2
2
20
0
1
3
856
0.0
0.1
16.9
0.3
0.0
3.3
0.2
0.6
0.0
0.5
0.9
0.1
Country
Total number of
Number of employees
Percentage of employees
employees (unit)
trained in policies
trained in policies
or procedures related
or procedures related
to human rights (unit)
to human rights
Brazil
China
United States
United Arab Emirates
France
Netherlands
Portugal
Mexico
United Kingdom
Singapore
TOTAL
15,710
66
1,950
0
67
135
447
0
1
57
988
67
355
0
4
4
32
0
1
6
18,433
1,458
6.3
101.2
18.2
0.0
6.3
3.1
7.1
0.0
106.1
11.2
7.9
412-3 – AGREEMENTS AND SIGNIFICANT INVESTMENT CONTRACTS THAT INCLUDE
HUMAN RIGHTS CLAUSES OR THAT WERE SUBMITTED TO HUMAN RIGHTS ASSESSMENTS
The Code of Ethics and Conduct is applicable to all Embraer employees, suppliers and other
partners, as provided in the agreements. The document provides penalties for breaches: “The
Board members, directors, employees and all individual or companies who develop activities on
behalf of or in the name of Embraer are subject to administrative or legal disciplinary measures in
case of violation of the principles and values established by this Code, including the termination
of employment or the contractual business relationship, as appropriate.”
Before establishing any business relationship, Embraer requires the business partners and
third-party intermediaries to undergo a comprehensive due diligence analysis. Thus, the company
holds important prior information in order to meet the ethics, integrity and compliance standards
throughout the chain. Embraer’s Code of Ethics and Conduct features among the various docu-
ments considered in the due diligence process. This document is based on corporate values, on
the principles set forth in the United Nations Global Compact and OECD, as well as on the best
corporate governance and accounting practices.
GRI 416: CUSTOMER HEALTH AND SAFETY
416-1 – ASSESSMENT OF THE HEALTH AND SAFETY IMPACTS OF PRODUCT AND
SERVICE CATEGORIES
416-2 – NON-COMPLIANCE CASES REGARDING HEALTH AND SAFETY IMPACTS OF
PRODUCTS AND SERVICES AT THE CLIENTS
Manufacturers of any aircraft must demonstrate the compliance of their product with requirements
such as structure, engines, control systems, electric systems and performance during flight.
This demonstration of compliance is done through analysis during soil tests (such as structure
tests to support bird attacks, fatigue tests and simulator tests), as well as through in-flight testing.
In order to be approved for use, the aircraft must meet all requirements.
61
Contents
GRICONTENT
INDEX
Contents
STANDARDS CORE OPTION |102-54, 102-55|
General disclosures
ORGANIZATIONAL PROFILE
102-1: Name of the organization
102-2: Activities, brands, products, and services
102-3: Location of headquarters
102-4: Location of operations
102-5: Ownership and legal form
102-6: Markets served
102-7: Scale of the organization
102-8: Information on employees and other workers
102-9: Supply chain
102-10: Significant changes to the organization and its supply chain
102-11: Precautionary principle or approach
102-12: External initiatives
102-13: Membership of associations
102-14: Statement from senior decision-maker
102-15: Key impacts, risks, and opportunities
102-16: Values, principles, standards, and norms of behavior
102-17: Mechanisms for advice and concerns about ethics
102-18: Governance structure
102-19: Delegating authority
GRI 102: General
disclosure 2016
STRATEGY
GRI 102: General
disclosure 2016
ETHICS AND INTEGRITY
GRI 102: General
disclosure 2016
GOVERNANCE
GRI 102: General
disclosure 2016
102-20: Executive-level responsibility for economic, environmental, and social topics
102-21: Consulting stakeholders on economic, environmental, and social topics
102-22: Composition of the highest governance body and its committees
102-23: Chair of the highest governance body
GRI 101: FOUNDATION 2016
Item
Page
Omissions
SDG
4
9
32
10
4 and 11
9 and 10
9
32
27
9, 18 and 19
12
33
34
5 to 7
12 and 35 to 37
9 and 13
14
11
11
34
38 and 39
11
11 and 39
8
16
16
16
5, 16
16
63
Contents
General disclosures
Item
Page
Omissions
SDG
102-24: Nominating and selecting the highest governance body
102-25: Conflicts of interest
102-26: Role of highest governance body in setting purpose, values, and strategy
102-27: Collective knowledge of highest governance body
102-28: Evaluating the highest governance body’s performance
102-29: Identifying and managing economic, environmental, and social impacts
GRI 102: General
disclosure 2016
102-30: Effectiveness of risk management processes
102-31: Review of economic, environmental, and social topics
102-32: Highest governance body’s role in sustainability reporting
102-33: Communicating critical concerns
102-35: Remuneration policies
102-36: Process for determining remuneration
102-37: Stakeholders’ involvement in remuneration
STAKEHOLDER ENGAGEMENT
102-40: List of stakeholder groups
102-41: Collective bargaining agreements
102-42: Identifying and selecting stakeholders
102-43: Approach to stakeholder engagement
102-44: Key topics and concerns raised
GRI 102: General
disclosure 2016
REPORTING PRACTICE
102-45: Entities included in the consolidated financial statements
102-46: Defining report content and topic boundaries
GRI 102: General
disclosure 2016
102-47: List of material topics
102-48: Restatements of information
102-49: Changes in reporting
102-50: Reporting period
102-51: Date of most recent report
102-52: Reporting cycle
102-53: Contact point for questions regarding the report
102-54: Claims of reporting in accordance with the GRI Standards
102-55: GRI content index
102-56: External assurance
11
11
11
39
11
39
12
40
40
40
40
40
40
4 and 12
27
40
38 and 39
21
4
4, 40 and 41
21
4
4
4
April 2017, as of 2016
Annual
4
4, 63
63
4
5, 16
16
4
16
16
8
64
Contents
Material topic
ECONOMIC PERFORMANCE
Disclosure
GRI 103: Management
approach 2016
GRI 201: Economic
performance 2016
MARKET PRESENCE
GRI 103: Management
approach 2016
GRI 202: Market
presence 2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
201-1: Direct economic value generated and distributed
201-2: Financial implications and other risks and opportunities due to climate change
201-3: Defined benefit plan obligations and other retirement plans
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
202-1: Ratios of standard entry level wage by gender compared to local minimum wage
202-2: Proportion of senior management hired from the local community
INDIRECT ECONOMIC IMPACT
GRI 103: Management
approach 2016
GRI 203: Indirect
economic impact 2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
203-1: Infrastructure investments and services supported
203-2: Significant indirect economic impacts
PROCUREMENT PRACTICES
GRI 103: Management
approach 2016
GRI 204: Procurement
practices 2016
ANTI-CORRUPTION
GRI 103: Management
approach 2016
GRI 205: Anti-
corruption 2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
204-1: Proportion of spending on local suppliers
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
205-1: Operations assessed for risks related to corruption
205-2: Communication and training about anti-corruption policies and procedures
205-3: Confirmed incidents of corruption and actions taken
Pages
40 and 41
41 and 42
41 and 42
43
43
43
40 and 41
41 and 42
41 and 42
44
44
40 and 41
28, 41 and 42
28, 41 and 42
28 and 44
28
40 and 41
27, 41 and 42
27, 41 and 42
27
40 and 41
13, 41 and 42
13, 41 and 42
13 and 44
13 and 45
45
Omissions
Global Compact
1, 5, 8, 16
2, 5, 7, 8, 9
13
1, 5, 8, 16
1, 5, 8
8
1, 5, 8, 16
2, 5, 7, 9, 11
1, 2, 3, 8, 10, 17
1, 5, 8, 16
12
1, 5, 8, 16
16
16
16
65
Contents
Material topic
ENVIRONMENTAL STANDARDS
ENERGY
Disclosure
Pages
Omissions
Global Compact
GRI 103: Management
approach 2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
302-1: Energy consumption within the organization
302-2: Energy consumption outside of the organization
GRI 302: Energy 2016
302-3: Energy intensity
302-4: Reduction of energy consumption
302-5: Reductions in energy requirements of products and services
WATER
GRI 103: Management
approach 2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
303-1: Water withdrawal by source
GRI 303: Water 2016
303-2: Water sources significantly affected by withdrawal of water
303-3: Water recycled and reused
EMISSIONS
GRI 103: Management
approach 2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
305-1: Direct (Scope 1) GHG emissions
305-2: Energy indirect (Scope 2) GHG emissions
305-3: Other indirect (Scope 3) GHG emissions
GRI 305: Emissions
2016
305-4: GHG emissions intensity
305-5: Reduction of GHG emissions
305-6: Emissions of ozone-depleting substances (ODS)
305-7: Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions
40 and 41
42
42
30 and 46
46
47
30 and 47
30 and 47
40 and 41
42
42
30 and 48
48
30 and 48
40 and 41
41 and 42
41 and 42
30 and 49
30 and 49
30 and 49
30 and 50
30 and 50
30 and 50
30 and 50
1, 5, 8, 16
7, 8 , 12 ,13
7, 8 , 12 ,13
7, 8 , 12 ,13
7, 8 , 12 ,13
7, 8 , 12 ,13
1, 5, 8, 16
6
6
6, 8, 12
1, 5, 8, 16
3, 12, 13, 14, 15
3, 12, 13, 14, 15
3, 12, 13, 14, 15
13, 14, 15
13, 14, 15
3, 12, 13
3, 12, 13, 14, 15
66
Contents
Material topic
EFFLUENTS AND WASTE
Disclosure
GRI 103: Management
Approach
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
306-1: Water discharge by quality and destination
GRI 306
306-2: Waste by type and disposal method
306-3: Significant spills
SUPPLIER ENVIRONMENTAL ASSESSMENT
GRI 103: Management
Approach
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
GRI 308
308-1: New suppliers that were screened using environmental criteria
308-2: Negative environmental impacts in the supply chain and actions taken
Omissions
Global Compact
1, 5, 8, 16
3, 6, 12, 15
3, 6, 12
3, 6, 12, 15
1, 5, 8, 16
Pages
40 and 41
42
42
30 and 51
30 and 51
51
40 and 41
27
27
27
27 and 52
Item
Pages
Omissions
Global Compact
Specific topics
Social standards
EMPLOYMENT
GRI 103: Management
Approach
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
401-1: New employee hires and employee turnover
GRI 401
401-2: Benefits provided to full-time employees that are not provided to temporary or part-time employees
401-3: Parental leave
OCCUPATIONAL HEALTH AND SAFETY
GRI 103: Management
Approach
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
403-1: Workers representation in formal joint management–worker health and safety committees
403-2: Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities
GRI 403
403-3: Workers with high incidence or high risk of diseases related to their occupation
403-4: Health and safety topics covered in formal agreements with trade unions
40 and 41
42
42
52 and 53
53
53
40 and 41
27 and 42
27 and 42
54
54
56
56
1, 5, 8, 16
5, 8
8
5, 8
1, 5, 8, 16
8
3, 8
3, 8
8
67
Contents
Specific topic
SOCIAL STANDARDS
TRAINING AND EDUCATION
Item
Pages
Omissions
Global Compact
GRI 103: Management
approach 2016
GRI 404: Training and
education 2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
404-1: Average hours of training per year per employee
404-2: Programs for upgrading employee skills and transition assistance programs
404-3: Percentage of employees receiving regular performance and career development reviews
DIVERSITY AND EQUAL OPORTUNITY
GRI 103: Management
approach 2016
GRI 405: Diversity and
equal oportunity 2016
NON DISCRIMINATION
GRI 103: Management
approach 2016
GRI 406: Non
discrimination 2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
405-1: Diversity of governance bodies and employees
405-2: Ratio of basic salary and remuneration of women to men
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
406-1: Incidents of discrimination and corrective actions taken
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
GRI 103: Management
approach 2016
GRI 407: Freedom
of association and
collective bargaining
2016
CHILD LABOR
GRI 103: Management
approach 2016
GRI 408: Child labor
2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
407-1: Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
408-1: Operations and suppliers at significant risk for incidents of child labor
40 and 41
27 and 42
27 and 42
27 and 57
27 and 58
27 and 58
40 and 41
27, 41 and 42
27, 41 and 42
59
60
40 and 41
27, 41 and 42
27, 41 and 42
60
40 and 41
27
27
27
40 and 41
27
27
27
1, 5, 8, 16
4, 5, 8
8
5, 8
1, 5, 8, 16
5, 8
5, 8, 10
1, 5, 8, 16
5, 8, 16
1, 5, 8, 16
8
1, 5, 8, 16
8, 16
68
Contents
Specific topic
FORCED OR COMPULSORY LABOR
Item
GRI 103: Management
approach 2016
GRI 409: Forced or
compulsory labor 2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
409-1: Operations and suppliers at significant risk for incidents of forced or compulsory labor
HUMAN RIGHTS ASSESSMENT
GRI 103: Management
approach 2016
GRI 412: Human rights
assessment 2016
LOCAL COMMUNITIES
GRI 103: Management
approach 2016
GRI 413: Local
communities 2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
412-2: Employee training on human rights policies or procedures
412-3: Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
413-1: Operations with local community engagement, impact assessments, and development programs
SUPPLIER SOCIAL ASSESSMENT
GRI 103: Management
approach 2016
GRI 414: Supplier
social assessment
2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
414-1: New suppliers that were screened using social criteria
414-2: Negative social impacts in the supply chain and actions taken
CUSTOMER HEALTH AND SAFETY
GRI 103: Management
approach 2016
GRI 416: Customer
health and safety 2016
103-1: Explanation of the material topic and its boundary
103-2: The management approach and its components
103-3: Evaluation of the management approach
416-1: Assessment of the health and safety impacts of product and service categories
416-2: Incidents of non-compliance concerning the health and safety impacts of products and services
Pages
40 and 41
27
27
27
40 and 41
41
41
27, 60 and 61
27 and 61
40 and 41
28
28
28
40 and 41
27
27
27
27
40 and 41
41 and 42
41 and 42
61
61
Omissions
Global Compact
1, 5, 8, 16
8
1, 5, 8, 16
1, 5, 8, 16
1, 5, 8, 16
6, 8, 16
6, 8, 16
1, 5, 8, 16
16
69
Contents
CREDITS
General coordination
Vice-President of People and
Sustainability, Corporate
Sustainability Department
Consultancy for indicators, publishing
coordination, design and editing
TheMediaGroup
Written by
KMZ Conteúdo
(coordination: TheMediaGroup)
Translation (English version)
Bureau Translations
Photos
Embraer collection