Ultra’s businesses maintain continuous improvement programs in its industrial processes, thus increasing the efficient use of raw materials and natural resources. The businesses adopt a synergetic approach in identifying solutions which can bring benefits both to the environment and the sustainability of the operations. Each company monitors its own indicators as well as ratios of greenhouse gas emissions, water and energy consumption and generation and disposal of waste and is accountable to Ultra for each one of these metrics.

Ipiranga is committed to the environment and works continually on projects for improving the eco-efficiency of its reseller client operations. Particularly important in this context are the Eco-Efficient Service Stations employing the efficient management of natural resources using sustainable construction techniques. Energy for example is saved using LED illumination and natural light combined with dimmer sensors. Constructions have thermal insulation and darkened windows as well as the harvesting of rainwater and automatic faucets with timers.

In order to stimulate the multiplier effect of the Eco-Efficient Service Station concept, the resellers can also call on a free consultancy service which recommends how the business can be made more sustainable. Ipiranga’s engineering team offers this service, contact being through the relationship website. At year-end, Ipiranga had 1,240 Eco-efficient Service Stations nationwide out of a total network of 8,005 units.

Oxiteno conducts its businesses based on international guidelines and benchmarks for protecting the environment. Among these is the Brazilian Chemical Industry Association’s (Abiquim) Responsible Action Program (Programa Atuação Responsável). This is a voluntary commitment for implementing occupational health, safety and environmental systems. In other countries where it has operations, the company participates in similar initiatives under the Responsible Care program of the International Council of Chemical Associations (ICCA) and the ISO 14.001 standard.

Ultragaz has been implementing a sustainable reseller model since 2014.There are already two stores with this configuration in São Paulo (SP) and Fortaleza (CE). The model, a pioneer both in Brazil and abroad, required the use of a series of materials and special cladding to produce the best results for the community, the environment and businesses.

The São Paulo store for example was built to US Green Building Council standards and guidance and certified by LEED (Leadership in Energy and Environmental Design), Ultragaz being the first LPG distributor to be awarded this certification in Brazil. The store uses LPG once-through heaters, rainwater capture system, a selective waste collection program and technologies for reducing energy consumption, such as LED lighting. Other items contributing to store cooling is the platform housing gas bottles with a covering that avoids heating and high temperatures. A green wall reduces the inside temperature and the need for air conditioning. Sewage from the unit is processed at a mini treatment station which adopts the biodegradation process.

Among the initiatives developed under the iVIS10N Program, important are the:

• Ultra-solution Asphalt Plants: optimization of asphalt mix production with gains in energy efficiency and a reduction in operating costs;
• Ultra-solution Lead Ovens: complete solution for conversion of lead industries and permitting a reduction in operating costs;
• Ultra-solution Thermal Fluid Heater: a solution for the industrial segment with superior energy efficiency; and
• Ultra-solution Pizza Parlor Ovens: a gas-based solution which improves pizza parlor productivity as well as guaranteeing pizza quality and flavor.

Ipiranga manages greenhouse gas (GHG) emissions at its units and along the resale chain. The Zero Carbon Program, in addition to measuring emissions, also collates information on the reduction and offsetting of emissions which cannot be avoided. Ipiranga neutralizes its direct and indirect emissions, including those of Ipiranga Racing resulting from team travel and vehicles used in stock car racing. The program is audited annually by an independent certifying organization thus guaranteeing transparency, consistency and reliability to all stakeholders.

The purchase of carbon credits by Ipiranga also supports the conservation of the Amazon Rain Forest through investments in local conservation projects such as Reducing Emissions from Deforestation and Forest Degradation (REDD+). In 2017, the company visited the region to see the local reality on the ground and the forest reserves which generate the carbon credits.

Oxiteno manages its emissions through the Atmospheric Emissions Reduction and Monitoring Program, which tracks CO ₂ emissions, local effect pollutants, particulate material (PM), sulfur (SOx) and nitrogen (NOx) oxides, carbon monoxide and volatile organic compounds (VOCs). The initiative also serves as an incentive for adoption of cleaner technologies and more efficient solutions.

Oxiteno’s goal for 2020 is a reduction of 25% in the generation of greenhouse gases compared to the baseline year of 2008. The company notifies its emissions and as emissions management conducted for its suppliers to the CDP, a fact that has been recognized now for two consecutive years.

In 2017, Oxiteno continued work on the project for the sale of carbon dioxide, a residual product from the reaction of ethylene oxide in Camaçari (BA). Emissions of 24,175t of carbon gas were avoided during the year.

At Ultragaz, the annual emissions inventory monitors and registers GHG emissions at all its operations, including electric energy sources, resellers, air travel and third-party vehicles. In addition, in 2017, the company concluded its third year of working with the CDP Supply Chain Program. Through this initiative, Ultragaz invites its key suppliers to report their management strategies and initiatives on climate change including CO ₂ emissions. The CDP evaluates the results and provides feedback and plans for improvement. A total of 43 key suppliers were involved in the program in 2017.

Ipiranga and Ultragaz publish their inventory in the Brazilian GHG Protocol Program’s Public Emissions Registry, receiving the Gold seal for providing a full inventory and submitting it to outside verification.

GHG emissions (scopes 1 and 2) (tCO₂e)

1. Amounts correspond to emissions from all Oxiteno’s industrial units with the exception of Pasadena (USA). Since 2016 Oxiteno and White Martins have implemented a project for the commercialization and purification of CO2 generated in the production of ethylene oxide.
2. In 2015, Ultracargo counted the emissions resulting from the burning of products in the Santos fire. Therefore, the value has changed significantly.
3.The numbers have been revised.
4. Ipiranga’s GHG inventory is based on operational control and for this reason, the lubricants plant was included until November 2017.
5. Absolute emissions increased due to higher production although the amount of emissions avoided was still greater.

GHG emissions (scope 1) (tCO₂e)

1. The numbers have been revised.
2. The significant variation in 2015 reflects emissions from combatting the Santos fire. Port handling activity in 2017 was greater than 2016 due to the partial resumption of TIS I.

GHG emissions (scope 2) (tCO₂e) ¹

1. There was an increase of 13% in the emissions factor from the national grid between 2016 and 2017 and influencing emissions performance.
2. The numbers have been revised.
3. In 2017, consumption of new units (Distribution Centers for am/pm supplies) have been included.
4. Despite greater handling activity, electric energy consumption fell, principally in the case of Aratu (BA).

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

1. Amount corresponding to direct and indirect emissions of CO₂e against total output (t).
2. The number fell due to greater handling activity at the Suape and Itaqui terminals where there is no vapor burn-off.

Ipes

Ultracargo has been planting seedlings in public spaces of the communities surrounding its operations in the city of Santos as environmental compensation for the fire in 2015 at one of its terminals. This initiative also underscores the commitment of the company to its social and environmental responsibilities.

Among the species which are contributing to the green areas of the city are different varieties of ipes (purple, yellow and white), aroeiras (pepper tree) and pitangueiras (Brazil cherry tree) – considered appropriate for planting in urban environments and which have a minimum height of 1.80 meters. By the end of 2018, Ultracargo is to have planted 974 seedlings.

Ipiranga has expanded the reuse of water and rainwater harvesting. The head office building, which houses the administrative area and the majority of employees, operates a Rainwater Harvesting System for use in restrooms, floor washing, as well as plant watering. In 2017, the system supplied 418 m³ of harvested rainwater. In addition, 91% of the operating units (storage terminals and distribution pools) run programs for reducing water consumption.

One of Oxiteno’s goals is to increase the consumption of recycled water by 25% in 2020 compared with consumption in 2008. At the Mauá installations for example, the entire water supply for industrial purposes comes from recycled sources, representing 15% of the total and made possible by the Aquapolo project, operated jointly by the Capuava Petrochemical Complex in Mauá and Companhia de Saneamento Básico do Estado de São Paulo (Sabesp), a water utility company. As a result of this initiative, the companies in the petrochemical complex have ceased to consume an average of 450 million liters of water every year. The treated water undergoes rigorous additional purification.

At Camaçari (BA), there is a rainwater harvesting system for industrial cooling, in addition to initiatives pending completion for expanding direct reuse in processes as well as reuse of effluent. The Triunfo Petrochemical Complex (RS) is also studying a project for installing a system for the reuse of water from the effluent treatment plant.

Total water consumption (m³)

1. The number has been revised.
2. Consumption of water remained high at the Santos terminal due to washing of tanks and lines prior to partial resumption of operations. However, a start has been made on the use of rainwater for washing equipment and hydrostatic testing.

Sources of water harvesting in 2017 (%)

1. Supplies by water tanker.

Water consumed per ton of product sold (m ³)

1. Fuel handling at the terminals increased significantly although water consumption did not increase in the same proportion due to the absence of tank washing.

Ipiranga continued its efforts to reduce electricity consumption in 2017. The company began the preparation of an energy efficiency guide for the operating units after mapping the principal opportunities for conservation during the year. In addition, 94% of the operating units (storage terminals and distribution pools) already have reduction programs under SIGA+ with LED lighting installed in the head office building and at units to reduce energy consumption.

Oxiteno is constantly looking for ways to increase the efficiency of its boilers for generating steam and harnessing energy – as for example in the steam consumed from residual gas generated by neighboring companies. The company has also been expanding the use of the more efficient LED lighting at its units. Panels for the generation of solar energy and a small wind farm have been installed at Mauá (SP), both of which were used to supply energy to some of the areas of the unit contributing to a reduction in consumption despite the increase in output during the year.

Direct, renewable and non-renewable energy consumption (GJ)

1. Numbers have been revised.
2. Total energy showed a slight variation due to the increase in fuel consumption (diesel, gasoline and ethanol) in equipment and vehicles.

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

1. Number has been revised.

Ipiranga has a dedicated solid waste management area given its relevance to the business. The company’s initiatives involve resellers, clients and authorized lubricant distributors - all of whom are trained in the environmental risks of inappropriate waste disposal. Among the projects which the company has been developing or in which it participates, particularly worthy of mention are:

Awarded Collection Campaign – raffles travel awards as an incentive to resellers and Ipiranga Authorized Distributors in the correct disposal of spent lubricant waste with the collection of 57,685 m³ in partnership with LWART - a recognized leader in the collection of used or contaminated lubricant oils in Latin America.

Ipiranga Clean Point - is a voluntary drop-off point for increasing recycling at Ipiranga’ s head office where there is the largest concentration of company employees. In addition to the benefits for the environment, the initiative has been well received by the recyclable material scavengers. In 2017, waste of more than 23 tons was collected, especially in the form of paper, paper board, plastic and glass.

Play Clean - this is a sectorial movement in which Ipiranga participates for the environmentally correct disposal of plastic packaging for lubricants as required in the National Policy for Solid Waste - NPSW (Law 12.305/2010). Since 2005, through the company’s 20 collection points, about 600 million units of packaging have been recycled. See more on this project at: www.joguelimpo.org.br.

Ipiranga also collects and segregates recyclable waste at the operating units through recycling initiatives and awareness campaigns, 86% of the units (including storage terminals and distribution pools) having programs for reducing hazardous waste. In 2017, companies used for the disposal of such waste (representing 77% by volume of all hazardous waste sent for disposal by Ipiranga) were audited. The margin of effectiveness with which Ipiranga was attended by the companies was 97%.

For more than 15 years and even before the existence of NPSW, Oxiteno has been operating a Zero Landfill Policy for its industrial waste (the disposal of industrial waste contaminated by chemical products in landfills being prohibited). The practice is extended to operations in Mexico and Venezuela. In Uruguay, there are only landfills available to dispose such waste.

The company for example runs a program for enhancing the value of products of minor commercial importance – the so-called co-products and used as raw materials in other productive processes such as cement additives, diluents and industrial additives instead of being consigned as waste, thus contributing to the circular economy.

Additionally, Oxiteno has set a target for reducing waste volumes generated per ton of product by 40% in 2020 against a comparable level of 3.42 kg/t product in 2011.

Ultragaz is also contributing to the reduction in solid waste with its own voluntary initiative: Collect Oil Campaign: Ultragaz Collects and Soya Recycles (Campanha Junte Óleo: Ultragaz Coleta e Soya Recicla) in partnership with Bunge and Instituto Triângulo. With this initiative, consumers receive two bars of biodegradable soap for every two liters of spent cooking oil delivered to the Ultragaz reseller. The collected material is used in the production of soap and biodiesel. Between 2014 and the end of 2017, more than 800 thousand liters of oil were collected from 450 households through the intermediary of 400 Ultragaz resellers in cities located in the states of São Paulo, Ceará, Minas Gerais, Rio Grande do Sul and Bahia

A further company project is the Ultragaz Takes Batteries and Cell Phones Program (Programa Ultragaz Pega Pilhas, Baterias e Celulares) where Ultragaz resellers collect used batteries and discarded cell phones from residences or collection bins installed at Ultragaz units and send them for reprocessing or recycling. Nationwide, Ultragaz collected more than 6o0 kilos of this material in 2017.

Extrafarma has a Health Services Waste Management Plan, the operationalization of which is the responsibility of outsourced companies authorized by the Brazilian Food and Drug Administration – Anvisa. These companies provide transportation, treatment and final disposal of expired or damaged medications, syringes, needles and gauzes adequate 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.

Solid non-hazardous waste (tons)

1. Numbers have been revised.
2. The larger volumes of rubble from construction work is due to improvements to installations, principally at the unit in Mauá (SP).

Disposal of non-hazardous waste (%)

1. In 2015 (67%) and 2016 (50%), the amount of waste reused reflected the demolition of warehouses and reuse of civil construction waste, a fact which was not repeated in 2017.
2. The increase in the total amount of waste (26% in 2016) is related principally to the greater disposal of material for recycling at Ipiranga’s headquarters.

Hazardous solid waste (tons)

1. In 2015, waste and effluent in Santos from the fire inflated this result. In 2016, stored storm water was discarded and impacting the indicator. In 2017, the situation was regularized.
2. The numbers have been revised.
3. Increase due to a one-off generation of 1,752 tons of products sent for disposal.

Disposal of hazardous waste (%)

1. In 2016, the amount was 19.3%. The increase in 2017 is due to higher rainfall and the cleaning of separator boxes and fuel tanks.
2. Disposal covers waste from the Uruguayan operation only since there is no viable alternate in the country. Oxiteno has participated for more than 15 years in the Zero Landfill program, not disposing hazardous industrial waste in landfills. Of the remainder, 71% of the waste generated in the other units is recycled or harnessed to generate energy.