Depending on the structure of each one of its businesses, Ultra runs programs for continually upgrading its industrial processes and use of raw materials and natural resources which interface with its stakeholders, whether clients, consumers, suppliers or resellers.

Each one of the Company’s businesses is responsible for monitoring its own indicators and levels of greenhouse gas emissions, water and energy consumption and generation and disposal of waste. All the businesses are accountable for each of these parameters, performance of which is shown in this chapter. Worthy of note however is that management records for Ipiranga, Oxiteno and Ultragaz permit greater depth and comparability of actions with respect to environmental issues.

Ipiranga has a consolidated environmental management process in place with the adoption of good practices and projects for improving eco-efficiency. The company’s Eco-efficient Service Stations present the most visible face of this project, incorporating several measures such as the efficient management of water, energy, waste and materials. By the end of 2016, there were 1,191 service stations of this type in Brazil. The Eco-efficient Service Station saves energy using LED illumination and natural light combined with dimmer sensors, thermal insulation, window film, rainwater harvesting and automatic faucets, among other sustainable construction solutions.

Resellers are now able to call on an eco-efficiency consultancy placed at their disposal by Ipiranga’s engineering team in order to multiply eco-efficient service station solutions. Service stations can request this free service via the relationship website. The reseller receives a customized technical report with indications of solutions for reducing the consumption of energy and water in order to introduce a greater degree of sustainability to the business.

Oxiteno is committed to environmental conservation, both in the context of its industrial operations as well as the life cycle of its products. The business is administered based on international guidelines and benchmarks for preserving the environment, as exemplified by adherence in Brazil to the Responsible Operations Program of the Brazilian Chemical Industry Association (Abiquim). This trade association establishes a voluntary commitment for the implementation of actions relative to occupational health, safety and the environment. In other countries, the company adheres to similar initiatives under the Responsible Care program of the International Council of Chemical Associations (ICCA) and the ISO 14.001 standard.

Ultragaz currently has two sustainable resellers. The first was inaugurated in São Paulo in 2014 and already has LEED (Leadership in Energy and Environmental Design) certification, the first LPG distributor to have such a seal of approval in Brazil. The second sustainable reseller was opened in Fortaleza (Ceará) in 2016 and is currently with its AQUA (High Environmental Quality) certification pending approval.  Built in line with the criteria of the United States Green Building Council (USGBC) - an entity, which promotes sustainability in civil construction - the sustainable resellers use special materials and cladding as thermal insulation that emits less heat together with water-based soluble paint, resulting in gains for both health and the environment. The resellers also use LPG heating to reduce the impact of heat and light while one of the external walls has a green curtain lining. Other items contributing to store cooling is the platform housing the LPG bottles with a covering that avoids heating and high temperatures. A photovoltaic panel is also used to generate the store’s own energy. In addition, a system for reuse of water is planned with the installation of a hydraulic pump for harnessing rainwater for use in bathrooms. LED light bulbs are used for illumination. In the external areas, mechanically mixed concrete was used - to reduce waste - as well as recycled cement. There is also a system for the selective collection of materials generated by the store – a function conducted in partnership with waste scavenger associations – and a bicycle parking lot.

Finally, through the Resellers Management Program, launched in 2016, Ultragaz supplies its resellers with consultancy and advisory services for managers to upgrade their skills in safety and environmental management. Training is also given on business management such as accounting and sales.

The Ipiranga Zero Carbon program encompasses the management of greenhouse gas emissions at the company along its entire production chain from fuel transportation to sale. In addition to measurement, the program includes the reduction and compensation for unavoidable emissions. In this way, Ipiranga neutralizes all its direct and indirect emissions, including those of Ipiranga Racing arising from team travel as well as emissions from the vehicles during the Stock Car races themselves. The company also invests in projects to offset the impact of the clients that consume the network’s fuel.

The acquisition of carbon credits for eventual neutralization initiatives has already surpassed 300 thousand tons. The most recent acquisition in 2016 involved a REDD+ (Reducing Emissions from Deforestation and Forest Degradation) project for supporting conservation in the Amazon region with actions for avoiding deforestation and for restoring the forest cover as well as for local community development.

The emissions inventory is published in the Public Emissions Registry (www.registropublicodeemissoes.com.br) under the auspices of the Brazilian GHG Protocol Program. The company has a Gold seal, granted to organizations that prepare a full emissions inventory and agree to submit it for outside verification. In addition, the Zero Carbon Program as a whole is audited annually by an independent outside party, thus ensuring the Program’s transparency, consistency and reliability in the eyes of all company stakeholders.

Since 2008, Oxiteno has operated an Atmospheric Emissions Reduction and Monitoring Program, which tracks emissions of CO₂, local effect pollutants, particulate material, sulfur (SOx) and nitrogen (NOx) oxides, carbon monoxide and volatile carbon compounds at the units in Brazil. From 2009, this program was extended to Mexico and since 2015, Venezuela and Uruguay. Thus, only the Pasadena unit, the expansion of which will be concluded in 2017, is still not a party to the monitoring program. The initiative also serves as an incentive for adoption of clean technologies and efficiency enhancement measures.

In 2016, emissions intensity was 0.43 ton/CO₂ equivalent per ton of commercialized product (tCO₂e/t), slightly below the amount reported for the preceding year. Oxiteno’s goal for 2020 is a reduction of 25% in the generation of greenhouse gases compared to a baseline year of 2008. Up to 2016, there was an accumulated reduction of 11% in these emissions. Among different initiatives implemented and contributing to the result, of particular note was the partnership agreement with White Martins’ Camaçari (Bahia) unit. The CO₂ generated from the production of ethylene oxide is commercialized, so avoiding release of emissions into the atmosphere. Since the pilot project phase, beginning in August 2016 until March 2017, 4.5 thousand tons of CO₂ have been redeemed, with a potential for this volume to increase to as much as 80 thousand tons/year. Similar work has been carried out for a longer period in Mauá (SP), with the sale of the resulting CO₂ to the same commercial party.

Ultragaz has monitored and registered its annual greenhouse gas inventory for all its operations since 2009, covering electric energy sources, resellers, air travel and third party vehicles.

In 2016, the company once more recorded a reduction in scopes 1 and 2 emissions. For the second year, Ultragaz engaged key suppliers in a GHG emissions reduction scheme in partnership with the CDP (Carbon Disclosure Project). Through this initiative, in 2016, Ultragaz committed 43 suppliers to a progressive reduction in emissions as from the preparation date of GHG inventories. The project is an integral part of the Sustainability, Occupational Health, Safety and Environment, Supplies and Engineering (Quality & Regulation and Logistics) areas.

As with Ipiranga, Ultragaz publishes its inventory in the Public Emissions Registry of the Brazilian GHG Protocol Program, receiving the Gold seal for providing a full inventory and submitting it to outside verification.

Emissions of greenhouse gases (scopes 1 and 2) (tCO₂e)

1. Values refer to emissions from all Oxiteno’s industrial units except Pasadena. In 2015, the units in Mexico, Venezuela and Uruguay were included and in 2016, White Martins implemented a project for the commercialization and purification of CO₂ generated from the production of ethylene oxide.
2. Up to 2014, the scope included the Paulínia Terminal, deactivated in 2015. In 2015, emissions at Ultracargo incorporate those resulting from the burning of products in the Santos fire and for this reason there was a significant increase in GHG emissions for that year.

Emissions of greenhouse gases (scope 1) (tCO₂e)

1. The significant variation in 2015 reflects emissions due to combating the Santos fire.

Emissions of greenhouse gases (scope 2) (tCO₂e)

Total direct and indirect emissions of greenhouse gases per ton of product sold (tCO₂e)

1. Value corresponds to total direct and indirect emissions in tons of CO₂e against total production (t).

One of Oxiteno’s goals is to increase the consumption of recycled water in 25% by 2020 against the baseline year of 2008. At the Mauá installations for example, an average of 97% of water comes from recycled sources thanks to the Aquapolo project which is operated jointly by the Capuava Petrochemical Complex in Mauá and Companhia de Saneamento Básico do Estado de São Paulo (Sabesp), a water utility company. A system has been installed for pumping water from the Sewage Treatment Plant in the ABC Paulista region to the industrial complex in Mauá. In order to ensure quality, the treated water also undergoes rigorous additional purification.  Consequently, the companies in the petrochemical complex have ceased to consume an average of 450 million liters of water every year. The Triunfo Petrochemical Complex (Rio Grande do Sul) is conducting a similar study to install a reuse system for water from its effluent treatment plant. At Camaçari (Bahia), there is a rainwater collection system for industrial cooling processes. By the end of 2016, 16% of the target for water reuse had been met.

In line with its strategy of seeking new uses for LPG, Ultragaz has developed equipment for automotive washing purposes able to reduce the consumption of water in drive-thru and service station operations by 90% while maintaining the quality, agility and practicality of the cleaning process both of the interior and exterior of the vehicle. This solution is being introduced at Ipiranga’s service station network, an example of the synergetic approach between two of the Company’s businesses.

Ipiranga is seeking to expand water reuse and the capture of rainwater. In addition to the Rio de Janeiro (Rio de Janeiro) building, the following units have installed systems for rainwater collection: Campo Grande (Mato Grosso do Sul), Presidente Prudente, São José do Rio Preto and Ourinhos (São Paulo), Cascavel and Londrina (Paraná), Cruz Alta and Santa Maria (Rio Grande do Sul) and Governador Valadares (Minas Gerais).

Total water consumption (m³)

1. Values correspond to Oxiteno’s industrial units, except Pasadena. The international units were included from 2015 while prior to that year only the Brazilian units were tabulated.
2. Scope: Itaqui, Suape, Aratu, Rio de Janeiro and Santos.

Sources of water in 2016 (%)

1. Supplies by water tanker.
2. Ultragaz captures rainwater at various units although measurements began in 2017 only.

Total water consumed per ton of product sold (m³)

Ipiranga installed an energy efficiency pilot project for storage terminals in Caxias do Sul (Rio Grande do Sul) with the purpose of identifying opportunities for reducing energy consumption and cost and conducive for replication at the other operations. The project is scheduled for installation at 10 storage terminals during 2017.

Oxiteno is endeavoring to increase the efficiency of its boilers for steam generation. In Camaçari (Bahia), the continuous monitoring of equipment performance, preventive maintenance and increased team awareness were all successful measures for reducing the consumption of steam at four plants at the unit by 40 thousand tons. Panels for the generation of solar energy and a small wind farm have been installed at Mauá (São Paulo) and responsible for partially supplying the unit. Illumination of the plant also uses the more efficient LED lighting.

Total direct renewable and non-renewable energy consumption (GJ)

1. Includes all Oxiteno’s industrial units except Pasadena. The increase in consumption in 2015 reflects the inclusion of the units in Mexico, Venezuela and Uruguay.

Energy consumption (renewable and non-renewable) per ton of product sold (GJ)

At Ipiranga, resellers, clients and authorized lubricant distributors are trained and alerted to the environmental risks of inappropriate disposal of waste.

In partnership with LWART - a recognized leader in Latin America for the collection of used or contaminated lubricant oils -, the company is promoting an Awarded Collection campaign for which there are raffle draws for travel prizes for those delivering spent lubricants to Ipiranga’s units. The initiative has produced positive results by providing the service stations with one more differentiated service and in the process, demonstrating a commitment to socio-environmental issues. During the year, Ipiranga collected 59,919 m³ of oil.

Ipiranga operates a system of recyclable waste management and selection at its head offices. The Ipiranga Clean Point is a voluntary drop-off point for increasing recycling at a location with the largest concentration of company employees. In addition to raising awareness as to the correct segregation of waste, the initiative has been well received by the recyclable material scavengers, waste in excess of 28 tons having been collected in 2016. Encouraged by initial results, recycling initiatives through the medium of collection points and awareness campaigns have been intensified at Ipiranga’s operating units, which report monthly on the quantities of recyclable materials generated through the corporate Credit360 system. In 2016, 50% of non-hazardous waste was reused and 26% sent for recycling.

Ipiranga has also signed up to the Play Clean (Jogue Limpo) campaign for managing oil and lubricant waste. This is a sectorial movement for the environmentally correct end disposal of plastic packaging for lubricants as required in the National Policy for Solid Waste (Law 12.305/2010). See more about this initiative (www.joguelimpo.org.br) .

Oxiteno seeks to adequately manage the waste generated from its productive processes through a partnership with its suppliers and service providers. As from 2016, the issue was made central to the priorities of the business, refining the existing management process and monitoring the specific indicators. The company runs a project for enhancing the value of products that have limited commercial importance– the so-called co-products –,  and which might normally be disposed as waste, but on the basis of this strategy, are used as raw materials in other productive processes such as cement additives, diluents and industrial additives. In 2016, sales of these items amounted to 22 thousand tons.

As part of the process of increasing efficiency and reducing environmental impacts, Oxiteno has set a target of reducing waste volumes generated per ton of product by 40% in 2020 against a comparable level of 3.42 kg/t product in 2011. In 2016, the company was able to reduce this amount by 23% to 2.62 kg /t product. Total volumes of waste rose in 2016.

Ultragaz’s Collect Oil Campaign: Ultragaz Collects and Soya Recycles (Campanha Junte Óleo: Ultragaz Coleta e Soya Recicla) in partnership with Bunge and Instituto Triângulo offers bars of biodegradable soap for every two liters of cooking oil waste delivered to the Ultragaz reseller. The collected material is used in the production of soap and biodiesel. The project operates in cities located in the states of São Paulo, Ceará, Rio Grande do Sul and Bahia. In 2016, more than 500 thousand liters of oil were collected through the intermediary of 380 Ultragaz resellers. It is estimated that more than 500 thousand people were participants in this project. A further company project is the Ultragaz Takes Batteries and Cell Phones campaign where Ultragaz resellers collect used batteries and discarded cell phones, which are then sent for reprocessing or recycling. Ultragaz collected 690 kilos of this material in 2016.

At Extrafarma, the principal focus is on the management of expired or damaged medications in addition to other waste such as syringes, needles and gauzes. The company operates a Health Services Waste Management Plan (PGRSS), executed by third party companies authorized for the purpose by the Brazilian Health Surveillance Authority - Anvisa. These companies provide transportation, treatment and final disposal suitable for such discarded materials. Additionally, all expired medications, products suspended for sale or with damaged packaging are sent for incineration by companies accredited by the environmental protection agencies and authorized by Anvisa.

A series of awareness campaigns was run by the Instituto Ultra at the Company’s São Paulo headquarters on the correct separation and disposal of trash, more than 1 ton of white paper, newspapers, cardboard, plastic cups and cans being collected. The Institute also oversaw an extended version of the partnership with Bunge, again at company headquarters, for converting cooking oil into soap.

Solid non-hazardous waste (tons)

1. The peaks in non-hazardous waste reflect civil construction work at Ipiranga’s units.
2. A series of factors influenced performance in the generation of hazardous and non-hazardous waste: changes in operating conditions at Tremembé and Mauá; a new product developed at Camaçari; modernization work in the industrial effluent disposal and collection network at some units; and the inclusion of waste generated at the Uruguay unit from 2015.

Disposal of non-hazardous waste (%) 2016

Solid hazardous waste (tons)

1. In 2015, waste and effluent from the fire in Santos (SP) inflated this result. In 2016, this waste was still in the process of being disposed, particularly in the case of effluent.
2. A series of factors influenced performance in the generation of hazardous and non-hazardous waste: changes in operating conditions at Tremembé and Mauá; a new product developed at Camaçari; modernization work in the industrial effluent disposal and collection network at some units; and the inclusion of waste generated at the Uruguay unit from 2015.

Disposal of hazardous waste (%) 2016

1. Covers waste from the unit in Uruguay, this form of disposal being the only viable option in the country. Oxiteno has been a part of the Zero Landfill Program for more than 15 years and does not dispose hazardous waste in landfills.
2. 100% of all effluent generated at Ultracargo’s terminals is sent for biological treatment.