The solid corporate governance structure at Ultra has allowed the company to maintain an effective risk management, with the use of tools and control systems in a continuous process of evolution. This culture, combined with operational aspects, such as the strategic decision to centralize most of the financial and information technology activities into a single corporate center, facilitates the decision-making process by managers and executives.
In risk management, which aims to ensure the longevity of Ultra, control systems also ensure adequate operational autonomy to managers, responsible for assessing risks and benefits in the everyday operations. Risk management at Ultra is centralized for the themes that are common to all the businesses, such as Financial Risk Policy, Code of Ethics, Corporate Policy Anticorruption, Material Fact Disclosure Policy and Trading Policy of Securities, controls over the preparation of financial statements, certifications related to the Sarbanes-Oxley Act (SOX), IT Policy, among others. Operational and strategic risks are monitored by each business unit and followed by the company’s internal controls and auditing structures, reporting to oversight bodies, such as the Fiscal Council.
One of the parameters adopted by Ultra in risk management is the compliance with the Sarbanes-Oxley Act (SOX), established in 2002, in the United States, which ensures the maintenance of internal controls to ensure transparency and accountability in business management.
Seeking to develop this decentralized risk management model, Ultra is implementing a consolidated matrix of its risks to establish an integrated discussion. In this process, the company will formalize an integrated risk management policy, seeking to formalize its practices and the organization of its governance on the subject. As part of the risk management, the Risk and Financial Investment Committee is essential to ensure long-term financial soundness. The Investment Committee also plays an important role in aligning investment decisions to the strategies of growth and value creation, before an assessment by the members of the Executive Board and the Board of Directors.
Ultragaz bottling base
OPERATIONAL RISKS AND SAFETY
Ultra maintains programs and control initiatives that have contributed to improve the quality of operational risk management. The challenge of preventing accidents at Ultra facilities is not limited to the company. In addition to its own staff, preventive measures are shared with other stakeholders, such as third parties and suppliers.
of Ipiranga’s operational facilities are achieved by the program SIGA+
Ipiranga continued the expansion of the SIGA+ program (Ipiranga Management System Applied to Health, Safety, Environment, Quality and Social Responsibility) at its own logistics facilities, operating offices and jointly-operated facilities it manages. SIGA+ promotes the alignment of operations with national and international standards and norms.
SIGA+ brings together a set of tools for the operational management that allows the continuous improvement on topics recommended by the program, through the adoption of procedures, records and controls, accompanied by the setting of performance targets. The percentage of facilities achieved by the program was increased from 70% in 2014 to 81% in 2015. In addition, about 70% of the facilities and certified offices, in 2015, scored at the highest ranges of the program.
Oxiteno has adopted the Risk-Based Process Security Management Model, in order to incorporate guidelines, programs, audits and evaluations in the industrial processes of the operating units. The system identifies the risks related to processes, establishes mechanisms preventing or reducing risk probability and creates conditions to control the impacts of such risks.
The company also revised the Change Management Process, with the aim of improving the quality of operations and reducing the risks and impacts posed by changes made in the industrial installations.
The main risks to which Ultra is exposed reflect strategic-operational and economic-financial aspects. A detailed description of the various types of risk that are inherent to Ultra are presented in Item 3 of the Form 20-F, available here.
Aiming to reduce accidents, Ultragaz implemented the Safety Climbing Program (“Escalada de Segurança”) in 2007. The initiative comprehends 17 production bases, involving approximately 3,000 employees.
In 2015, there was a 17% decline in the number of accidents with temporary absence, driven by the awareness campaign Top-Notch Attitude (“Atitude Nota 10”). Currently, the locations have autonomy to develop and improve programs within the security concept established by the Safety Climbing Program, in order to avoid occurrences throughout the year. Preventive actions are intensified through the incidents and accidents investigation.
Ultragaz also implemented the Hearing Conservation Program to improve facilities or prevent the development of hearing loss among employees in the production areas.
The challenge of preventing accidents in Ultra’s facilities is not limited to the company. Preventive measures are shared with third parties and suppliers.
In July, Ultracargo began the Safe Attitude Program, with the aim of improving the operational and safety processes. The initiative emerged as a learning and reflection after the fire that hit the Santos terminal in April 2015 (read more about this here) and aims to identify and promote continuous improvements, implement new procedures and minimize vulnerability factors in operations. To reach the goal of achieving a new level of excellence in safety management, Ultracargo has the support of a specialized consultancy, which supports the company in defining a future vision of safety, health and the environment.
Ultracargo’s Safe Attitude program was created from the learnings after the fire at the Santos terminal, and had the support from a world leading company in safety management to carry out a diagnosis of processes and suggest improvements.
Due to its economic activities related to health and well-being, risk management at Extrafarma includes strict measures for monitoring products from inventory receipt, including handling and delivery, until waste disposal.
Inside the distribution centers, trucks are electronically sealed and the fleet is monitored by GPS along the distribution route to ensure that medical supplies are safely delivered at their destinations. Upon disposal, the company has a Health Services Waste Management Plan, which monitors the proper disposal of waste such as syringes, needles and gauze. Collections are made by companies authorized by the National Health Surveillance Agency (Agência Nacional de Vigilância Sanitária – Anvisa). In addition to waste, all expired medications or those with suspended sale or damaged packaging should be incinerated by environmental companies that are authorized by Anvisa.