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Esval S.A. Sustainabil ity Report 2009
2
ABOUT THIS REPORT
This is Esval’s second Sustainability Report, which outlines its economic, social and environmental performance in a balanced way, pursuant to the criteria and requirements laid down by the Global Reporting Initiative (GRI) in its G3/2006 guidelines for drawing up sustainability reports1.
The content of this report only refers to Esval’s operations in the Valparaíso Region and the January 1 through December 31, 2009 period, unless expressly indicated otherwise. For better understanding, the figures and data are shown compared to the years 2007 and 2008.
In regard to the data reported the previous year, there were no major changes in Esval’s size, structure or ownership, and nor have the bases, preparation criteria or the calculation methods used changed. If there is any modification of any indicator, this will be expressly reported.
Compliance with the Principles on Reporting Content
The content of this report was defined considering the principles of the GRI standard on relevance or materiality, sustainability context and stakeholder inclusiveness.
1. Benchmark of sustainability reports of national water utilities. This concept identified the main issues and aspects reported by the industry and best reporting practice.
2. Analysis of press articles. The aim was to find out the significant issues for the Company and industry from a public opinion perspective and in a context of sustainable development. 608 press articles in the January 1 through December 31, 2009 period were reviewed and analyzed.
3. Workshop with representatives of neighbor committees, organized into Communal Associations (UNCOs) in the region, for which the Company invited all the UNCO leaders to a working breakfast meeting. With the help of a consultant team, the attendees were asked about the degree of importance they gave to each of the content items of the report published the previous year. 21 representatives of communal organizations attended this workshop.
All the participants also had the opportunity of raising other issues of interest that were not reported on in the 2008 report or about which they would like to have more information.
1www.globalreporting.org
3Esval Sustainabil ity Report 2009
ASPECTS RAISED BY STAKEHOLDERS
(UNCO LEADERS)
ASPECTS IDENTIFIED BY BENCHMARK
ASPECTS IDENTIFIED IN PRESS ANALYSIS
List of Issues Material to be Included in Esval’s Sustainability Report 2009
The main issues and their priority were established in this workshop, which are reflected in the structure of this report and the depth of the different issues.
The various aspects of the GRI standard were associated with the list of major issues identified and related to each of them and its respective indicators, defining that data would be gathered on 54 performance indicators plus all the indicators related to the profile, corporate governance, commitments and stakeholder participation. This gave a total of 96 indicators to be reported on.
STRATEGY AND PROFILE
ECONOMIC DEVELOPMENT
ENVIRONMENTAL DEVELOPMENT
SOCIAL DEVELOPMENT - PRODUCT RESPONSIBILITY
SOCIAL DEVELOPMENT - SOCIETY AND HUMAN RIGHTS
SOCIAL DEVELOPMENT - LABOR PRACTICES
TOTAL INDICATORS
CHAPTER/SECTION Nº OF INDICATORS
42
3
22
9
8
12
96
4
Moreover, in this report Esval strived to meet the additional data expectations raised by the leaders of the communal organizations involved in the process of defining the content of Esval’s Sustainability Report 2009.
ENVIRONMENTAL PERFORMANCE
ISSUES/CONCERNS
ODORS AT WASTEWATER TREATMENT PLANTS
WATER QUALITY, CHEMICALS USED AND THEIR TREATMENT
WASTEWATER DISCHARGES
MAIN ENVIRONMENTAL IMPACTS
SOCIAL PERFORMANCEPRODUCT
RESPONSIBILITY
USER AND LEADER TRAINING
SUPPORT OF CUSTOMERS IN DEFAULT WITH JUSTIFICATION
INFORMATION ON SUBSIDIES
WATER CUT (SCHEDULED OR UNSCHEDULED) MANAGEMENT
SOCIAL PERFORMANCELABOR PRACTICES
INFORMATION ON CONTRACTORS AND SUBCONTRACTORS (ESVAL’S RELATIONS WITH THEM, HOW IT TRAINS THEM, HOW IT MAKES SURE THEY DO A GOOD JOB WITHOUT IMPACTING THE ENVIRONMENT AND COMMUNITY)
INFORMATION ON EMPLOYEE TRAINING AND RELATIONS
SOCIAL PERFORMANCE SOCIETY
DIRECT COMMUNITY SUPPORT AND INFORMATION ACTIVITIES
RESEARCH DEVELOPMENT WITH UNIVERSITIES
TRAINING ON WATER CONSUMPTION ISSUES AND OTHERS
UNDERSTANDING ESVAL’S RELATIONS WITH THE DIFFERENT PUBLIC BODIES IN THE REGION
ECONOMIC PERFORMANCE
COMPANY GROWTH
HOW THE COMPANY INVESTS IN THE REGION
PROJECTS UNDERTAKEN AND THEIR PROGRESS
INFORMATION ON WATER TARIFFS
ATTAINED
PARTIALLY ATTAINED
UNATTAINED
5Esval Sustainabil ity Report 2009
RESPONSE LEVEL IN THIS REPORT
Compliance with the Principles on Reporting Quality
To ensure the quality, accuracy, comparability and verifiability of the information contained in this report, Esval had the support of a specialist external consultant on the GRI-G3 guidelines. This support enabled the necessary precisions to be made and the targets for the next reporting period to be documented.
Each indicator concerning the Company’s economic, social and environmental performance was drawn up in accordance with technical data and calculations based on procedures laid down in national regulations and aligned with the standards accepted by the international community.
Based on this, the Company qualified this report’s compliance as Level A.
500 copies of this report in Spanish were printed this year. Moreover, to guarantee access and wide distribution, a version was released in PDF format that is available on the corporate website www.esval.cl
Corporate Contact
Esval deems this report is a way of sharing its achievements and challenges with its main stakeholders to promote greater engagement with them. To request further information or make comments on the content of this report, interested people or institutions can contact:
Management: General Management
Address: Cochrane 751, Valparaíso
Telephone: (56 - 32) 2209341
E-Mail: [email protected]
Report Application Levels
6
Index
OUR COMPANY
01.1 WHO WE ARE AND WHAT WE DO 01.2 BUSINESS VISION AND SUSTAINABILITY 01.3 CORPORATE GOVERNANCE AND ETHICS 01.4 MEMBERSHIPS
1201
CONTROLLING OUR ENVIRONMENTAL IMPACT
02.1 MANAGING OUR IMPACT02.2 WATER AND BIODIVERSITY02.3 EMISSIONS02.4 WASTE02.5 DISCHARGES02.6 RAW MATERIALS02.7 ENERGY
3402
CUSTOMER RELATIONS
03.1 OUR CUSTOMERS 03.2 CUSTOMER SERVICE AND SATISFACTION03.3 CUSTOMER INFORMATION AND SUPPORT03.4 PRODUCT/SERVICE QUALITY AND SAFETY03.5 SUPPLIER RELATIONS
4803
FOREWORD BY THE PRESIDENT AND CHIEF EXECUTIVE 800
7Esval Sustainabil ity Report 2009
EMPLOYEE RELATIONS
04.1 OUR EMPLOYEES04.2 GENERATING QUALITY EMPLOYMENT04.3 TRAINING, DEVELOPMENT AND EMPLOYABILITY04.4 OCCUPATIONAL HEALTH AND SAFETY04.5 LABOR RELATIONS04.6 CONTRACTORS
6404
COMMUNITY RELATIONS IN THE REGION
05.1 COMMUNITY05.2 PUBLIC-PRIVATE PROGRAMS TO SUPPORT REGIONAL DEVELOPMENT
7405
CONTRIBUTION TO REGIONAL ECONOMIC DEVELOPMENT
06.1 ECONOMIC VALUE GENERATION06.2 A REGULATED BUSINESS
8006
2009 COMMITMENTS AND 2010 CHALLENGES 8807
GLOBAL REPORTING INITIATIVE (GRI) INDEX 9208
8
We are very pleased to submit
Esval’s second Sustainability
Report for 2009, which reflects
the efforts started at least five
years ago and that culminated
in 2008 with the release of the
first report.
00
9Esval Sustainabil ity Report 2009
Foreword by the President and Chief Executive
We continue to work hard in the Company and also with our related stakeholders. In this second report we can confirm that sustainable development is a core aspect of our business model, which is evident in socially responsible behavior, respect for employees, the environment and the communities with whom we engage.
We have therefore taken a new step by considering the opinion of representatives of social organizations in the Valparaíso Region as an essential aspect in drawing up this report, which has enabled us to add a new focus and significant information from the perspective of these groups. We deem the reporting process to be continuous improvement work on the economic, social and environmental aspects of the Company,
presented in a balanced way and pursuant to nationally and internationally-renowned requirements. This is in turn paramount to pursue quality engagement with the community, which has become our main concern due to the impact of a water utility’s operations on life.
We are not alone in firmly believing in a policy of direct and transparent relations with our customers and the community as a whole, as two important institutions recognized this work in 2009. Firstly, the Asociación de Industriales de Valparaíso (ASIVA) awarded us the “Corporate Social Responsibility Award” in the large company category for designing the successful Up-To-Date with Esval program together with social organizations and then applying it. This initiative has had such an
impact that it was emulated by the Planning and Development Ministry (MIDEPLAN) in the Chile Solidario program by means of a loan from the Inter-American Development Bank.
Then, the Communal Association of Neighbors’ Committees of Viña del Mar gave Esval and its staff an award plaque for “its ongoing disposition to forge relations with social organizations, which reflects the important role it plays as a socially responsible company towards the community.”
We cannot omit an event of major importance for the Company and the community in 2009: the private administration completed a decade under the Company management and we can proudly confirm we have achieved
00 Foreword by the President and Chief Executive
10
tourism, agricultural and services development in the region, as without water there is no possibility of any new urban development and growth simply stagnates. This is, for example, what happened with sectors on the northern coastline where there was no drinking water until we built a 57-kilometer pipeline from the production plant on the Aconcagua riverbank to the district of Zapallar, which started in 2003 and was completed in 2008. Due to this large investment, every day we can see how communities are reborn and others grow as the service increases in the sector.
Wastewater treatment has a large impact on people’s health and on conserving the environment. In fact, several scientific reports claim that discharge of organic matter leads to a loss of oxygen in water, affecting the biodiversity present. We can now proudly say that the rivers and brooks in
the region are 100% clean of wastewater.In comparative terms, a report by the Organization for Economic Co-operation and Development (OECD), to which Chile belongs, and the Asociación Nacional de Empresas de Servicios Sanitarios (ANDESS), ranks Chile in eighth place in the world on wastewater treatment, with 84% coverage, which is the same level as the average of countries that are part of the European Union. Only Holland, Switzerland, the United Kingdom, Germany, Spain, Austria and Sweden are ahead of it. Nevertheless, the Valparaíso Region treats all the wastewater it collects, which puts us in first place of the international ranking up with the most developed countries in the world.
In regard to the impact on people’s health, it is important to mention that a study was submitted to the National Congress in the late 1990s claiming that for every US dollar invested in wastewater treatment, the State and people save US2.5 on infecto-contagious
large progress. This is evident in specific actions like an increase in the coverage of our services. Hence, wastewater treatment increased from 59.4% coverage in 1999 to 100% as of 2006. Sewerage coverage rose from 86.9% in 1999 to 91.9% in 2009, and drinking water coverage increased from 95.2% to 99.3% 1999 through 2009.
To carry out this growth, we have invested US$463 million in the last ten years, which is one of the highest private investments in the Valparaíso Region in the same period.
Such proceeds were allocated equally to drinking water production and distribution and to wastewater collection and treatment. The large works undertaken included the construction of 16 wastewater treatment plants and 59 drinking water storage tanks.
We have noted that the growth of sanitary services has contributed to the real estate,
11Esval Sustainabil ity Report 2009
diseases. Without going into details, a report by the doctors Chiang and Henríquez on the impact of the wastewater treatment system on Greater Valparaíso showed a drop in the typhus, paratyphus and hepatitis rates.
Therefore, when we see that more housing is being built every day in the region, that the number of tourists is on the increase, that vegetable and fruit exports are increasing to first world countries, we feel great satisfaction for permanently collaborating with the economic and social development of our area and its inhabitants.
Lastly, we know that despite the work undertaken we cannot rest. Quite the contrary, we understand that our responsibility requires daily work, and we are aware that there is still room for improvement. That is our commitment to the region, the country and mainly our customers.
Gustavo González Doorman Chief Executive
Pedro Pablo Errázuriz Domínguez President of the Board
12
WHO WE ARE AND WHAT WE DO
Esval S.A. is a publicly-traded corporation that produces and distributes drinking water, collects, treats and disposes wastewater, and provides services related to such activities in the way and conditions laid down by law and other applicable regulations. Its activity is regulated by the Superintendency of Sanitary Services (SISS)2, which controls the service quality and suitable wastewater treatment.
01.1
01
2www.siss.cl
13Esval Sustainabil ity Report 2009
Our Company
The National Congress agrees that water utilities can be privatized, with the State maintaining a capital stock percentage.
The Valparaíso Region has drinking water service coverage of 95.2%, 86.9% for sewerage and 59.4% for collected wastewater treatment.
The Higuerillas marine outfall is extended, thereby opening the Amarilla, Los Lilenes and Playa Negra beaches in the district of Concón in the summer of 2000. The Company resumes direct operation of the province of San Antonio, which has 55,000 customers, thereby ending in advance the investment management contract between Esval and Aguas Quinta signed in 1993.
Inauguration of the Higuerillas and Concón Oriente wastewater treatment plants, completing the clean-up of the beaches in Greater Valparaíso.
1998
1999
2000
2001
Esval becomes the first water utility to open up to privatization by means of an international tender process. Aguas Puerto S.A. (Enersis 72% and Anglian Water Chile Ltda. 28%) was awarded 40% of the shareholding.
The Las Vegas aqueduct maintenance works were completed to improve the operation of this system which supplies 70% of the inhabitants of Greater Valparaíso.
Anglian Water becomes the main shareholder of the Company with a 49.82% shareholding.
Construction starts on 30 drinking water tanks distributed throughout the concession area to increase the storage capacity and make the growth and development of cities possible.
Main highlights in the last 10 years
01 Our Company
14
Start-up of the Los Maitenes, La Ligua, Papudo, Zapallar, Cachagua and La Laguna wastewater treatment plants, and the construction of the Chincolco system is completed. Start-up of the San Felipe, Los Andes and Quillota wastewater treatment plants, thereby freeing the Aconcagua river and Limache brook of domestic waste. Construction of the Avenida Argentina collector in Valparaíso.
Construction starts on the first stage of conveying drinking water from the district of Concón to that of Zapallar, covering the stretch to Quintero.Start-up of the El Quisco, El Tabo and Curimón wastewater treatment plants.The Up-To-Date with Esval program was launched to train the poorest sectors in the benefit of responsible drinking water consumption. The program also provides special benefits for regularizing debt. This program was subsequently repeated by the government in the Chile Barrio (Chile Neighborhood) program, led by MIDEPLAN, with a contribution from the IDB.
Start-up of the Quintero and Rinconada wastewater treatment plants.
550 l/s increase in the Las Vegas drinking water production capacity, which supplies the main towns in Greater Valparaíso, at an investment of over CLP2 billion.
The Healthy Water, Healthy Life campaign is launched, whose aim is to disseminate the need of good use of drinking water and sewerage systems. An increase of 15,000 drinking water subsidies for the poorest families in the region was attained due to the joint work of Esval and the legislative, regional and district authorities.
Consorcio Financiero S.A. acquires 44.78% of the company, becoming the major shareholder. Esval is awarded the operation of the sanitary concessions in the Coquimbo Region through its affiliate Aguas del Valle for a 30-year term. Esval thereby attains a market share of around 17% of customers in this sector in the country.Esval’s laboratory attains certification of complying with Chilean standard 17.025, which regulates the operation of these establishments at national and international level.
The Company starts to participate in the Gobierno Más Cerca (Closer Government) program, an activity of the provincial governors’ offices that gets the community closer to public services.
Esval secures the ISO 14001, 2004 international certification, which includes all the company’s processes, i.e., drinking water abstraction, production and distribution, and wastewater collection, treatment and disposal.
2002
2003
2004
2005
15Esval Sustainabil ity Report 2009
By means of an agreement by the Municipality of Viña del Mar, community organizations and Esval, the facilities of the Nuevo Horizonte housing estate in the Glorias Navales sector are improved. This estate had internal operation problems.The company participates in the Manitos Limpias (Clean Hands) program with the Regional Ministerial Secretary of Health, promoting children’s hygiene to prevent infecto-contagious diseases.
The Healthy Water, Healthy Life campaign disseminates the good use of drinking water and sewerage systems to over 205,000 people, attaining one million contacts since the program was launched in 2002.
The company secures the ISO 9001, 2000 international service quality certification, and OHSAS 18001, 2007 certification on occupational safety and health of its employees. In addition to ISO 14001, 2004 which includes all the processes, Esval is the first water utility to have an integrated management system.
Inauguration of drinking water conveyance from the Aconcagua river production plant in the district of Concón to Zapallar. It is 57.5 kilometers long, entailed an investment of CLP22.715 billion, and will supply a broad sector on the northern coastline of the region, whose development was hampered by the lack of water.
Nogales is connected to the El Molino de Quillota wastewater treatment plant.The San Antonio district clean-up system is launched with the attendance of President Ricardo Lagos Escobar. This completes the 100% domestic waste clean-up of rivers and seawater on the coastline in the Valparaíso Region.Stabilization lagoons are converted to aerated lagoons, thereby complying with the standards laid down in Supreme Decree 90 related to discharges of liquid waste into seawater and continental surface water. Ten towns benefit from this process, which entailed an investment of over CLP6.6 billion.
The Ontario Teachers’ Pension Plan acquires 69.4% of Esval’s shares, becoming the main company shareholder.
Start-up of a geo-referenced information system with digital maps with operational infrastructure. It includes customer location and that data is cross-referenced with the results of the 2002 census, location of schools and hospitals, among other establishments, besides telephone databases, making the customer service more efficient.
The Valparaíso Region has a sanitary service coverage which is similar to and even higher than that of developed countries: 99.3% for drinking water, 91.8% for sewerage and 100% for collected wastewater treatment.
2006
2007
2008
2009
01 Our Company
16
Esval provides a water service to 529,260 drinking water customers and 476,284 sewerage customers, who account for 99.3% and 91.9%, respectively, of the population of the concession areas in the districts where Esval S.A. operates in the Valparaíso Region. To provide its service, the Company has a network of 4,416 kilometers of drinking water mains and 3,246 kilometers of wastewater collectors3.
URBAN POPULATION SUPPLIED
DRINKING WATER CUSTOMERS
SEWERAGE CUSTOMERS
DRINKING WATER COVERAGE (%)
SEWERAGE COVERAGE (%)
WASTEWATER TREATMENT COVERAGE
OF WATER COLLECTED (%)
DRINKING WATER BILLING (THOUSANDS OF M3 A YEAR)*
SEWERAGE BILLING (THOUSANDS OF M3 A YEAR)**
1,480,834
529,260
476,284
99.3 %
91.9%
100%
93,456
82,877
Esval Operation Data 2009
Source: SISS management report 2009 (except the figures marked with an asterisk which are from Esval’s data)
3SISS sanitary sector management report 2009.
17Esval Sustainabil ity Report 2009
Concession Area
Article 53 of the General Sanitary Services Law defines a concession area as “the geographical area with an established land and height boundary, where there is a service obligation for drinking water distribution and wastewater collection concessionaires.”
Esval’s concession areas are the zones that the previous water utility in the Valparaíso Region served before the General Sanitary Services Law came into force on June 21, 1989, including the expansion areas envisaged in the development plans and new expansions approved by the SISS.
They approximately include the urban zones of all the districts in the Valparaíso Region, with the exception of the towns of Panquehue, Olmué and Santo Domingo and the island territories that depend on this region (Easter Island and Juan Fernández Island). This territorial definition does not consider those sectors that are concessions of private or municipal services.
Esval complies with interconnection and service administration contracts outside its concession area to supply drinking water to the Algarrobo Norte, Mirasol and Brisas de Mirasol concessions in the district of Algarrobo and it has an interconnection contract with Inmobiliaria Norte Mar, the concessionaire in the Rodelillo sector of the district of Viña del Mar.
01 Our Company
18
01 Petorca: La Ligua, Cabildo, Papudo, Zapallar
02 San Felipe: Putaendo, Santa María, Catemu, Llay Llay
03 Los Andes: San Esteban, Rinconada, Calle Larga
04 Quillota: Nogales, La Cruz, La Calera, Hijuelas
05 Marga Marga: Limache, Villa Alemana, Quilpué
06 Valparaíso: Puchuncaví, Quintero, Concón, Viña del Mar
07 San Antonio: Algarrobo, Casablanca, El Quisco, El Tabo, Cartagena, San Antonio
Map of the towns where Esval provides a service
PETORCA
LOS ANDES
QUILLOTA
SAN FELIPE
VALPARAÍSO
SANANTONIO
01
0203
04
06
07
Sectors outside the concession area: Sto. Domingo, Olmué, Panquehue.
MARGA MARGA
05
19Esval Sustainabil ity Report 2009
Affiliates and Related Companies
Esval was awarded a public tender in 2003 giving it the right to the 30-year operation of the public sanitary service concessions, held by ECONSSA CHILE S.A., former ESSCO S.A., in the Coquimbo Region. The affiliate corporation Aguas del Valle S.A. was established to manage such concessions, whose objective is exclusively focused on producing and distributing drinking water, subsequent wastewater collection, treatment and disposal, and the remaining services laid down in current sanitary legislation.
The activities and results of this affiliate are not included in this report, apart from exceptions that are expressly indicated.
ESVAL S.A
SERVICIOS
SANITARIOS
LAS VEGAS LTDA.
AGUAS DEL
VALLE
99.99%99.00%
1.00%
01 Our Company
20
Processes Drinking water production and wastewater treatment
Drinking water is that made fit for safe use and human consumption. It is produced from untreated water abstracted from surface or underground sources, which is put through various treatment processes at facilities specially designed for this. The outcome is a product that meets the national standard, NCh 409/1. of 2005, which sets forth the characteristics water must have to be
drinkable. Esval produced 161,484,277 m3
of drinking water in 2009 to supply an urban population of 1,480,834 people.
Wastewater treatment has a high social and environmental impact, as it helps to prevent the release of a host of contaminating germs and agents that can be harmful to the health of people and ecosystems. Wastewater
contains the waste from the daily activities of people and related services, which is why it must be removed and treated safely to protect users and the environment from the infinite contaminating agents and germs that build up in drains. In 2009, Esval treated 100% of the wastewater collected.
THE HYDROLOGICAL CYCLE
Water has no beginning or end. The hydrological cycle has enabled it to be constantly recycled since the beginning of the world.
STAGES OF THE HYDROLOGICAL CYCLE
1 Seawater evaporates due to heat.
2 Evaporation gives rise to clouds.
3 Water precipitates from the clouds in the form of rain or snow.
4 Snow builds up on high peaks and glaciers are formed.
5 Thawing causes the water to run off down ravines and into rivers and brooks.
6 A part of the water transported accumulates in lakes or dams.
21Esval Sustainabil ity Report 2009
01 Our Company
22
Drinking Water Plants
VALPARAÍSO OPERATIONS DEPARTMENT
Las Vegas (Romeral)
Concón
Peñuelas (Valparaíso)
Poza Azul (Quilpué)
SAN FELIPE-LOS ANDES OPERATIONS DEPARTMENT
El Sauce (Los Andes)
Bellavista (Los Andes)
Sondaje Miraflores (Los Andes)
Canal La Compañía (Putaendo)
Sondaje 626 and Sondaje Granallas (Putaendo)
Dren Putaendo (Putaendo)
Llay Llay
Catemu
Rinconada (Calle Larga)
San Esteban
El Carmen (San Felipe)
El Tambo (San Felipe)
Almendral - Chepical (San Felipe)
Santa María
SOUTHERN COASTLINE OPERATIONS DEPARTMENT
San Juan (San Antonio)San Jerónimo (Algarrobo)Casablanca
QUILLOTA OPERATIONS DEPARTMENT
La Cruz
Sondaje Alfaro (Quillota)
Sondaje Angamos (Quillota)
Sondaje Sargento Aldea (Quillota)
Parrones (Quillota)
El Cristo (Quillota)
Sondaje San Isidro (Quillota)
San Pedro
Oriente (La Calera)
San Diego (La Calera)
El Melón (La Calera)
Lautaro (La Calera)
Pachacama (La Calera)
Artificio (La Calera)
Hijuelas
Panamericana (Nogales)
Pozo Liceo (Nogales)
Pozo Andrés Bello (Limache)
Quintero
Puchuncaví
Aguas Claras (La Ligua)
Goenechea (La Ligua)
Quínquimo I (La Ligua)
Quínquimo II (La Ligua)
Papudo
La Laguna (Zapallar)
Cabildo
Petorca
Chincolco
Wastewater Treatment Plants
AERATED LAGOONS
CatemuPuchuncavíPlacilla de Peñuelas (Valparaíso)PetorcaSanta MaríaSan Esteban CabildoPutaendoLlay-LlayCasablancaChincolco4
MARINE OUTFALLS
PTF5 _Emisario Dos NortePTF_Emisario Loma LargaPTF_Emisario HiguerillasPTF_Emisario Concón OrientePTF_Emisario QuinteroPTF_Emisario San AntonioPTF_Emisario CartagenaPTF_Emisario El TaboPTF_Emisario Algarrobo
ACTIVATED SLUDGE PLANTS
El Molino (Quillota)Los Maitenes (La Ligua)Almendral (San Felipe)Cordillera (Los Andes)Rinconada (Calle Larga)CurimónPunta Puyai (Papudo)ZapallarCachaguaLa Laguna (Zapallar)
4To date this is a facultative lagoon operating with 14 customers.5PTF: Physical treatment plant
23Esval Sustainabil ity Report 2009
BUSINESS VISION AND SUSTAINABILITY
Esval aims to be a water utility of excellence, permanently taking care of and contributing to the economic, social and environmental development of the region, being an active agent for the sustainable development of its environment. This is embodied in its business strategy by means of the vision, mission and corporate values that guide its operations.
Mission
To provide the best service to all its customers, making a contribution to the community regarding health, quality of life, conservation of the environment and regional development, generating value for its investors.
The Company’s success is directly related to the organized effort of all its members and the development of people comprising it. Hence, although achieving good economic results is a necessary condition, it is not the only expression of achievement to assure the Company’s development and the wellbeing of its employees.
Service quality, environmental protection and safety in the workplace are priority
01.2 objectives for the Company, which aims to be acknowledged as a player that is aware of its social responsibility in the entire region, both on account of respect for the health and life of its own personnel or third parties and for that of its customers.
Vision
The company’s service excellence and concern for the environment, along with its active contribution to the development of people and the communities where it operates, will make Esval valued and appreciated by its customers, employees and shareholders.
Corporate Values
• Cordiality, kindness, closeness and respect• Technical and service excellence• Proactivity, creativity and innovation• Congruence, veracity and transparency• Unpretentiousness and austerity• Commitment to the community
Management Systems
To attain its vision of being a company of service excellence that is concerned about the environment, valued by its customers, employees, shareholders and the communities
where it operates, Esval has an integrated management system (SIG), whose instruments are the international certification of ISO 9001:2000 (quality management system), OHSAS 18001:2007 (occupational health and safety management system), and ISO 14001:2004 (environmental management system).
This SIG covers all its processes, from drinking water abstraction, production and distribution to wastewater collection, treatment and disposal. It also includes customer service, administrative procedures, health and safety in the workplace.
Moreover, its laboratory has certification pursuant to the NCh 17.025 standard, which regulates its operations pursuant to national and international requirements.
Stakeholders
A key objective of Esval’s mission is for its management to be renowned as a player aware of its social responsibility throughout the region and in relations with its main stakeholders.
The table below shows Esval’s main stakeholders and the different information channels that allow for engagement with each of them:
01 Our Company
24
COMMUNICATION, DIALOGUE AND/OR ENGAGEMENT MECHANISM
Annual financial report Periodical financial statementsWebsite www.esval.cl
Periodical management reports
Annual financial report Periodical publicationsActive participation with Governors, Mayors, councilors, UNCOs, etc.
Satisfaction surveys Customer service hotlineCommercial officesWebsite www.esval.cl
Healthy Water, Healthy Life campaignPresentation in schoolsEducational workshopsActivities at centers for children whose mothers are seasonal workers“Door-to-door” activitiesPublic eventsHealth programWebsite www.esval.cl
Active participation in trade and regional organizations Periodical publicationsWebsite www.esval.cl
Critical supplier selection and assessment procedure Website www.esval.cl
Collective bargaining processes (every two years)Performance evaluation IntranetPeriodical publicationsWebsite www.esval.cl
Student practice programs, technical visits to facilities, thesis student programs, research projectsWebsite www.esval.cl
STAKEHOLDER
Shareholders and financial market
Regulators and controllers
Authorities
Customers
Community
Political and trade association area
Suppliers
Workers
Student and academic area
25Esval Sustainabil ity Report 2009
Esval’s Board of Directors comprised the following members for the year
ended December 31, 2009:
Corporate Governance
President:Pedro Pablo Errázuriz Domínguez7.051.188-6, Civil Engineer
Vice president:Jorge Lesser García Huidobro6.443.633-3, Civil Industrial Engineer
Directors:Kevin David Kerr48.120.866-1, Bachelor of Commerce, Chartered Accountant and CFA Charterholder
Rodrigo Pérez Mackenna6.525.287-2, Civil Engineer
Alejandro Reyes Vergara8.302.295-7, Attorney
Mónica Singer González7.700.329-0, Business Engineer
Olivia Steedman48.120.868-8, Civil Engineer
01.3
Directors’ Committee
The Directors’ Committee of Esval, which operated up to the year ended December 31, 2009, comprised the following members:
President:Mónica Singer González 7.700.329-0
Directors:Rodrigo Pérez Mackenna 6.525.287-2
Alejandro Reyes Vergara8.302.295-7
The Committee members, Mrs. Mónica Singer González and Mr. Alejandro Reyes Vergara, are directors who are independent of the controller and its related persons.
CORPORATE GOVERNANCE AND ETHICS
01 Our Company
26
The Directors’ Committee, which operated up to the year ended December 31, 2009, addressed the following issues concerning the 2009 period:
• Analysis of the information on operations set forth in articles 44 and 89 of Law N°18.046 and currently regulated by Title XVI of that same law.
• Analysis of the external auditors’ report, the balance sheet and other financial statements submitted by the company’s management to shareholders.
• Proposal of the external auditors and private risk rating agencies.
• Review of the remunerations system and compensation plans for senior managers and executives.
In regard to those operations set forth in articles 44 and 89 of Law N°18.046 and now regulated by Title XVI of that same law, the Committee approved the terms of subleasing a non-exclusive office with SAESA in the district of Las Condes, Santiago, to use it for holding board and committee meetings and for other meetings the Company must hold in Santiago, and this operation is subject to the aforementioned legal provisions.
Moreover, and pursuant to what is laid down in the mentioned legal provisions,
the Committee approved the terms of the addendum or contract that was definitively entered into with the company Ernst & Young. This will enable Esval and other related companies to use the financial protection model developed by such company.
Lastly, the Directors’ Committee approved the terms in which Esval will participate with the affiliate Aguas del Valle, and its related company Essbio, jointly with Aguas Nuevo Sur Maule, DICTUC S.A. and USM S.A. in the innovation and development consortium, whose aim is to develop research to address the environmental challenges of the sanitary industry. This operation was regulated by articles 44 and 89 of Law Nº18.046 and now regulated by Title XVI of that same law.
The decisions made by the committees entail identifying and managing economic, environmental and social opportunities and risks. Likewise, in regard to budget issues, most of the investments are justified based on the management and/or solution of environmental or social risks.
In regard to the board remuneration and fees, the breakdown is shown in the Company’s Annual Report 2009 available on the website www.esval.cl
Executive Committees
Esval has an Integrated Management System (SIG) Committee, made up of the CEO, the managers of each area, the internal auditor and representatives of the managements in charge of the environmental, quality, safety and occupational health management systems.
This Committee meets twice a year to review the SIG that has been implemented and certified, so as to assure its convenience, suitability and continuous efficiency regarding quality, the environment, and occupational safety and health.
There is also an Economic Committee, whose responsibility is to approve, within certain ranges, the disbursements proposed by the different areas for their activities and whether they are in keeping with the budget approved by the Company. This Committee, which meets weekly, is made up of the COO, CFO, human resources and commercial and development managers.
27Esval Sustainabil ity Report 2009
ESVAL S.A. Organization Chart For the year ended December 31, 2009
BOARD
GENERAL MANAGEMENT
PUBLIC RELATIONS
CORPORATE MANAGEMENT
INTERNAL AUDITING
HUMAN RESOURCES MANAGEMENT
LEGAL ADVICE
PLANNING & STUDY MANAGEMENT
COMMERCIAL & DEVELOPMENT MANAGEMENT
ENGINEERING MANAGEMENT
OPERATIONS MANAGEMENT
FINANCE & ADMINISTRATION
MANAGEMENT
01 Our Company
28
Senior Executives Chief ExecutiveGustavo González Doorman7.098.884-4, Civil Electronic Engineer
Engineering ManagerLeonel Fuentes Espinoza4.899.487-3, Civil Engineer
Commercial and Development ManagerMauricio Coll Olivares11.471.960-9, Civil Industrial Engineer
Chief Financial OfficerAgustín Benavente Font de la Vall7.067.713-k, Business Engineer
Legal AdvisorDomingo Tapia Navarro6.645.077-5, Attorney
Human Resources ManagerSergio Pinto Fernández8.018.789-0, Psychologist
Planning and Studies Manager Francisco Ottone Vigorena7.523.281-0, Civil Engineer
Operations ManagerGeorge Seal Comte5.390.299-5, Civil Engineer
29Esval Sustainabil ity Report 2009
TOTAL
SHARES
10,438,905,019,991
4,403,337,728,000
12,135,011,023
6,938,760,000
6,600,000,000
5,822,836,201
5,332,125,611
5,332,125,611
5,329,964,000
3,509,176,000
3,473,048,067
65,560,541,496
14,962,276,336,000
%
69.77%
29.43%
0.08%
0.05%
0.04%
0.04%
0.04%
0.04%
0.04%
0.02%
0.02%
0.44%
100.00%
A SERIES
SHARES
1,122,170,725
16,945,090
2,494,988
1,734,690
1,390,000
1,192,426
1,333,029
1,333,029
1,332,491
877,294
572,008
1,505,199,889
2.656.575.659
B SERIES
SHARES
-
1,083,889,342
-
-
-
-
-
-
-
-
7,877
96,206
1.083.993425
C SERIES
SHARES
10,437,782,849,226
4,402,236,893,568
12,132,516,035
6,937,025,310
6,598,610,000
5,821,643,775
5,330,792,582
5,330,792,582
5,328,631,509
3,508,298,706
3,472,468,182
64,055,245,401
14,958,535,766,916
NAME OR BUSINESS NAME
INVERSIONES OTPPB CHILE III LIMITADA
CORPORACIÓN DE FOMENTO DE LA PRODUCCIÓN
INVERSIONES GUALLATIRI LTDA
SUC. ZAMORA VILLALBA DAVID
BUSTILLOS MUNOZ MANUEL
INVERSIONES TACORA LIMITADA
VALENCIA UBILLA ARTURO
SOTO PIZARRO RENE
INVERSIONES LAGOA LTDA.
CHILEAN TREASURY
BANCHILE C DE BOLSA S.A.
OTHER SHAREHOLDERS
TOTAL
The Chilean Economic Development Agency (CORFO) is the only shareholder other than the controllers with over 10% of Esval’s capital stock.
Legal System and Ownership
As of December 31, 2009, Esval was controlled by the company Inversiones OTPPB Chile Limitada with a 69.77% shareholding. The table below shows the shareholding status of the Company in the period.
01 Our Company
30
The controlling group comprises the following members:
INVERSIONES OTPPB CHILE III LIMITADA
Shareholding of Series of Shares
Shareholding of Series with political rights (A & B)
MARECO HOLDINGS CORP.
Shareholding of Series of Shares
Shareholding of Series with political rights (A & B)
TOTAL SHARES RELATED TO OTPPB CHILE III LIMITADA
Shareholding of Series of Shares
Shareholding of series with political rights (A & B)
TOTAL
SHARES
10,438,905,019,991
1,487,520,566
10,440,392,540,557
%
69.77%
0.01%
69.78%
A SERIES
SHARES
1,122,170,725
42.24%
1,487,520,566
55.99%
2,609,692,291
98.24%
B SERIES
SHARES
-
0.00%
-
0.00%
-
0.00%
C SERIES
SHARES
10,437,782,849,226
69.78%
-
0.00%
10,437,782,849,266
69.78%
30.00%
39.77%
69.77%
Control by OTPPB and MARECO is based on a 98.24% shareholding of A series shares, with which they hold 69.77% of the Company’s political rights (30% for the former and 39.77% for the latter).
31Esval Sustainabil ity Report 2009
Code of Ethical Conduct
Esval S.A.’s code of ethical conduct was published in late December 2008 and was disseminated to all employees in January 2009 by means of different internal communication channels, mainly the intranet and internal newsletter.
The aim of the code is to be a guide for the conduct of each of the Company’s employees so this is in line with corporate policies and the value and ethical framework defined by the Company for its operations.
The code’s operation considers the presence of various consultation and/or reporting channels, and employees can: • Address the audit head personally • Send an email to [email protected] • Call the “Integrity Help Line”• Enter the section called Esval - Integro in the intranet. This cannel is also used to provide information on these issues.
When an employee files a complaint, he or she will have all the guarantee of confidentiality and privacy and the information provided will be treated in strict confidentiality.
In 2009, there were no consultations, and 2 complaints were filed through the different channels available.
01 Our Company
32
ASSOCIATIONS AND MEMBERSHIPS
Esval participates as a member in the following social corporations:
• Consejo Asesor de un Techo para Chile.
• Cámara Regional del Comercio (CRCP).
• Cámara Chilena de la Construcción, Regional Valparaíso.
• Asociación Nacional de Empresas de Servicios Sanitarios (ANDESS).
• Asociación Interamericana de Ingeniería Sanitaria y Ambiental (AIDIS).
• Asociación de Empresas y Profesionales para el Medio Ambiente (AEPA).
• Asociación Latinoamericana de Hidrología Subterránea para el Desarrollo (ALHSUD).
• Asociación de Industriales de la Región de Valparaíso (ASIVA).
• Cámara de Comercio y Turismo de Valparaíso.
• Cámara de Turismo de la Región de Valparaíso.
Esval also participates in the following committees and entities:
• Technical support to the government program of high-risk areas.
• Corporate Social Responsibility (CSR) committee of the CRCP.
• CSR committee of the ASIVA.
01.4
33Esval Sustainabil ity Report 2009
• Labor study committee (ASIVA).
• Tax study committee (ASIVA).
• Environmental committee (ASIVA).
• Emergency committee (ASIVA).
• Business committee Quintero, Concón and Puchuncaví (ASIVA).
• Real estate committee of the CCHC.
• Communications committee of the ANDESS.
• Technical and regulatory committee of the ANDESS.
Awards and Recognition
Esval received the following awards and recognition in 2009:
• Corporate Social Responsibility Award in the large company category by the Regional Chamber of
Commerce for the Up-To-Date with Esval program.
• Recognition by the Neighbors’ Committee of Viña del Mar for the way Esval forges permanent
relations with social organizations.
34
MANAGING OUR IMPACT
The operations, engineering, finance and administration, commercial and development, human resources and corporate operation managements are accountable for meeting the Company’s objectives on environmental sustainability. Through their daily work they are directly accountable for the result of the action taken and achieving each of the commitments the company makes in this area.
The environmental management system (SGA) made it compulsory for there to be a lead management for each environmental program promoted by the company. According to this scheme, the management responsible must coordinate the specific activities of the
02.1
02
35Esval Sustainabil ity Report 2009
Controlling Our Environmental Impact
program, control its execution and brief the Quality and Environmental Committee on the progress attained, normally twice a year. At the same time, its efforts must be aligned with the work of the management representative of the SGA, who is in charge of the general coordination of all the environmental programs.
The environmental management system forms part of the integrated quality, environmental, occupational safety and health management system, implemented in 2008, and its scope includes the production and distribution of drinking water and wastewater collection and treatment, including the marketing and service support processes. Its rationale is embodied in the integrated management system (SIG) policy.
To meet the commitments set forth in the SIG policy, objectives were set that were given a series of indicators, targets and control points. They jointly monitor and assess whether such commitments are met. In the case of environmental objectives and targets, programs were established to be developed, including the assignment of responsibilities, means and timescales to achieve them.
In 2009, the SIG objectives for the management of environmental impacts were focused on preventing contamination from discharges of liquid waste, improving the record of solid waste generation and giving priority to using the best environmental practice.
02 Controlling Our Environmental Impact
36
QUALITY, ENVIRONMENTAL, OCCUPATIONAL HEALTH AND SAFETY POLICY
The water utility Esval S.A. develops drinking water production and distribution and wastewater treatment processes in the Valparaíso Region, which entail the quality of processes, environmental protection and conservation, and occupational health and safety, by embracing the following commitments:
PROVIDING the best service to all its customers, making a contribution to the community regarding health, quality of life and regional development.
ADHERING TO laws, regulations and voluntary commitments signed by the organization.
EMBRACING a continuous improvement strategy for the processes developed by the organization.
PREVENTING contamination, by reducing waste generation, recycling it or disposing of it suitably.
PREVENTING the occurrence of injuries and occupational diseases affecting its employees and interested parties.
CONTRIBUTING to the integrated management of watersheds, the coastline and sustainable development of the Valparaíso Region by active participation in the pertinent instances generated, thereby improving the quality of life of its inhabitants.
GIVING PRIORITY TO adopting the best environmental and safety practice with the technology available, related to the services provided to the organization.
THE SUCCESSFUL COMPLIANCE WITH THIS POLICY ENTAILS THE CONTRIBUTION OF ALL THE AREAS OF THE ORGANIZATION, AND MANAGEMENT IS ACCOUNTABLE FOR ITS DISSEMINATION AND PROMOTION.
Esval recertified all its processes pursuant to the ISO 14001:2004 standard in July 2008 and will once again undertake recertification
in 2011.
Environmental Investment
Virtually all the investments made by Esval in infrastructure and maintenance have an environmental component, because they have a direct impact on the operation of the drinking water production and distribution systems; wastewater collection and treatment with the correct disposal in the environment. Esval invested over CLP290 billion in infrastructure and network maintenance 1999 through 2009, which have had a direct effect on the environmental progress in the region.
Notwithstanding this, as a result of the operation of the environmental management system some specific investments were made. For example, in 2009 around CLP20 billion were invested in regularizing fuel storage tanks, CLP40 billion in chemical containment works6, CLP19 billion in noise pollution mitigation works, and CLP33 billion in rectification works due to audits of facilities. Most of these investments arose from the objective of complying with the current regulation and maintaining the ISO 14001 certification.
6Tanks containing sodium hypochlorite, a sodium fluorosilicate solution, potassium permanganate and ferrous chloride used in the drinking water production and wastewater treatment processes.
37Esval Sustainabil ity Report 2009
WATER AND BIODIVERSITY
Water
Esval’s operations management keeps a record of the water production by productive system and source to establish the origin of drinking water.
Esval’s operations concern channels, rivers, brooks, springs, groundwater, the Peñuelas and Los Aromos dams, related to the watersheds of the Aconcagua, Maipo, Petorca and La Ligua rivers, and the coastline. Such operations entail water abstraction for potabilization and the discharge of wastewater from its treatment plants.
Esval produced 161,484,277 m3 of drinking water in 2009, which was equivalent to the total annual water consumption, of which 87,825,138 m3 came from surface sources and 73,659,139 m3 from groundwater sources.
To produce drinking water, in 2009 the Company obtained this resource from 13 surface sources and 113 groundwater sources.
02.2 Drinking Water Production 2007-2009 (m3)
PRODUCTION M3
2007
2008
2009
SURFACE WATER
84,020,876
83,455,208
87,825,138
GROUNDWATER
74,132,294
75,872,401
73,659,139
TOTAL
158,153,170
159,327,609
161,484,277
Surface Water Abstraction
QUANTITY (N° OF SOURCES)
13
MAIN LOCATIONS
Aconcagua river, Serrano channelLa Petaca channelWaddington channelLa Compañía channelPeñuelas dam
QUANTITY (N° OF SOURCES/ BORINGS)
113
Marga Marga brookMaipo riverEl Tigre ravineAgua Salada brookLilén brook
MAIN LOCATIONS
Las Vegas (Hijuelas) groundwater galleryConcón boringsSPAP7 Parrones-Covarrubias-Charravata (Quillota)Pachacama (La Calera) boringsSPAP Goenechea (La Ligua)SPAP ArtificioSPAP CabildoSan Juan (San Antonio) boringsO’Higgins (Casablanca) plantSPAP El Carmen (San Felipe)SPAP El Sauce (Los Andes)SPAP San EstebanSPAP Llay-Llay
Groundwater Abstraction
7SPAP: Drinking Water Production System
02 Controlling Our Environmental Impact
38
Biodiversity and Water Abstraction
During the process of extracting water for the production of drinking water there are no specific indicators on its impact on the biodiversity, be this biotic environment (human health, flora and fauna) or the physical environment.
Nevertheless, Esval also takes care of those places of great significance in terms of diversity, like the Peñuelas Lake and the Poza Azul abstraction plant. Regarding these, the Company has promoted the preservation of their natural conditions free of contamination, for example banning access to people who might damage the ecosystem by using it for recreation or sports. The characteristics of the Peñuelas Lake and Poza Azul were widely presented in the 2008 report8.
Biodiversity and Wastewater Treatment
The wastewater treatment plants currently operating at Esval have enabled the surface
water courses in the region not to be affected by wastewater discharges and the biodiversity conditions of the Valparaíso Region are being maintained. In the case of marine outfalls, whose water has not been treated biologically, the environmental monitoring program (PVA) has proven that their impact is minimal and marginal, as it is only limited to the immediate perimeter of the seabed where the water is discharged.
In regard to marine outfalls, a monitoring program is undertaken which meets the monitoring and follow-up requirements laid down by the maritime authority (General Directorate of Maritime Territory and Merchant Navy (DIRECTEMAR)), the Superintendency of Sanitary Services, the Directorate of Fisheries (SERNAPESCA), the Regional Ministerial Secretary (SEREMI) of Health of the Valparaíso Region and the respective environmental qualification resolution of the National Environmental Agency (CONAMA).
The environmental monitoring programs monitor:
•Effluents9: Two to four samples are taken a month to verify compliance with Supreme Decree N°90 SEGPRES (Table Nº5: Discharge outside the Coastal Protection Zone).
•Beaches: There is weekly monitoring in the summer and this is monthly in the winter.
•Marineenvironment: Quarterly and half- yearly samples are taken from the sea surface and at different depths.
•Marine sediment: Samples are taken quarterly and half-yearly.
•Tidalandsub-tidalbenthicresources10: Monthly samples are taken, especially in the zones around the operation areas.
• Oceanographicmonitoring:Studies are made of marine currents and the physical properties of the sea in the discharge areas.
The environmental monitoring programs are carried out by the Faculty of Marine Sciences and Natural Resources of the University of Valparaíso. Its functions include taking land
8www.esval.cl/Inversionistas/ReporteDeSustentabilidad/2008/index.html9 Water discharge from a treatment plant.10 These are organisms and species that inhabit the beach and the deep-water seabed.
39Esval Sustainabil ity Report 2009
and marine surface samples and at different depths, producing and interpreting results and issuing quarterly, half-yearly and annual reports with assessment reports for each outfall.
Most of the physical, chemical and bacteriological analyses of the water samples are made at Esval’s laboratory, which is certified by the National Standards Bureau pursuant to
11www.sernapesca.cl12Superintendency of Sanitary Services (www.siss.cl)13www.conama.cl
DUE TO THE WASTEWATER TREATMENT PROCESSES UNDERTAKEN WITH THE HIGHEST STANDARDS AND ADHERING TO THE CHILEAN REGULATION, 100% OF THE WASTEWATER TREATED AND DISPOSED OF IN RIVERS AND BROOKS CAN BE RE-USED FOR IRRIGATION.
2007
34,362,119
2009
35,883,069
2008
35,946,212WATER THAT CAN BE RE-USED M3/YEAR*
*Meets Supreme Decree N°90 which classifies the irrigation standard.
the Chilean NCh-ISO 17.025 standard. The analyses of the marine and benthic fauna are made at specialized laboratories of the University of Valparaíso.
A test report is released every month for each outfall with the results of the analyses of the samples taken of effluents, from beaches and the marine environment. These are sent monthly for assessment to the Port
Authorities of Valparaíso and San Antonio, the Directorate of Fisheries (SERNAPESCA)11, the Regional Ministerial Secretary (SEREMI) of Health, the Superintendency of Sanitary Services (SISS)12 and National Environmental Agency (CONAMA)13, who also receive the scientific and technical reports released by the University of Valparaíso.
02 Controlling Our Environmental Impact
40
EMISSIONS
Esval’s operations produce a low quantity of airborne emissions, and this mainly arises when it must use diesel-powered generating equipment at drinking water and wastewater treatment plants and stations.
The combustion of these generates the following contaminants: CO, NOx, SOx, volatile organic compounds (VOCs), NH3, total suspended particles (TSP) and particulate material (PM-10). The table below shows an estimate of the emissions of these contaminants in 2009.
02.3 Odor and Noise Management
Odors are a significant emission for the surrounding community and are mainly related to the wastewater treatment process. There is a special environmental program to manage them, which considers the measurement of gases at wastewater pumping stations (EEAS), the installation of an odor treatment system, such as gas scrubbing, essence dosage and an activated carbon filter.
The objective is to reduce the number of service requirements because of bad odors at facilities. When these arise, they are logged in the customer service system and are referred
ESTIMATED CONTAMINANT
EMISSIONS (T/YEAR)
MP
3,42
MP10
1,72
MP2,5
0,41
NOX
48,71
VOCs
3,87
CO
10,52
to the operative areas and the corresponding solutions are proposed and implemented.
Another emission that has a large impact on surrounding communities is noise pollution. In 2009, Esval invested CLP19 million in works to mitigate this kind of contamination.
This investment was made to carry out 8 noise mitigation works at the wastewater pumping stations of: Curauma, Cruz de Lorena in Quilpué, Puerto de Cartagena, Pedro de Valdivia in Concón, Diego Portales and Sótero del Río in San Antonio; and at the drinking water pumping stations (EEAP) of Placilla and Estanque Esperanza in Quilpué.
NH3
0,0085
CO2
1897,46
SOX
2,58
Total Estimated Emissions14 for Esval’s Generators (t/year) 2009
14Values estimated using the formula indicated in the methodological guidelines for estimating airborne emissions of fixed and mobile sources in the Contaminant Transfer and Emissions Record
[RETC] (CONAMA- MINSAL).
41Esval Sustainabil ity Report 2009
WASTE
The more than 300 facilities belonging to the Company generated an estimated figure of 12,547 tons of solid waste in 2009, which was a 108.9% increase on the 6,006 tons in 2008. Such increase was mainly due to the greater detail of logging debris waste, which in 2008 accounted for 54.4% of the annual total in tons and in 2009 was 76.7% of the total weight of solid waste generated.
The control and logging of solid waste adhered to the guidelines of the SGA, as outlined and reported in the Sustainability Report 2008. The table below shows the type and quantity of solid waste generated in the period.
02.4 Solid waste generated by type and disposal (tons)2007-2009
TONS FINAL DISPOSALTYPE OF SOLID WASTE GENERATED
SOLID DOMESTIC WASTE
DOMESTIC-ASSIMILABLE SOLID WASTE
RECYCLABLE SOLIDWASTE
HAZARDOUS WASTE
DEBRIS
YEARLY TOTAL
2007 2008 2009
El Molle in Valparaíso, La Hormiga in San Felipe and Altos de Cartagena waste dumps.
Paper is sent to SOREPA15 Computer equipment is sent to RECYCLA16
15www.sorepa.cl/16www.recycla.cl/17www.bravoenergy.com/htmlPages_Esp/chile.html
Used oils are sent to the recycling company Bravo Energy17 and Cemento Polpaico.Others (containers contaminated with fluoride, containers with chemicals or reagents, lead washers, fluorescent tubes, small batteries and batteries) are sent to specially implemented facilities that are authorized to destroy them.
37.7 39.3 73.8
2,768 2,683 2,846
8.7 9.8 1.57
6.6 8.6 7.37
N/D 3,265 9,618 This goes to the waste dumps of each work site.
2,821 6,006 12,547
02 Controlling Our Environmental Impact
42
Dehydrated Sludge
Wastewater treatment using activated sludge technology generates dehydrated sludge with various degrees of humidity ranging from 60% to 85% base humidity (b.h.). The volume generated in 2009 was 27,789 m3, which was a 7.2% increase on the 26,004 m3 generated in 2008. Such higher volume of sludge was due to greater wastewater loads and the increase in the volume of wastewater treated.
PLANT
LA LIGUA
SAN FELIPE
LOS ANDES
QUILLOTA
ANNUAL TOTAL
2007
2,505
6,795
6,510
8,625
24,435
2008
3,360
7,123
7,045
8,476
26,004
2009
3,045
9,402
6,417
8,925
27,789
Dehydrated Sludge Generation by Plant (m3)
02.5
Dehydrated Sludge Generation 2007-2009
2007 2008 2009
29,000
28,000
27,000
26,000
25,000
24,000
23,000
22,000
Cu
bic
Met
ers
Years
DISCHARGES
There were no environmental emergencies in 2009 related to the operation of wastewater treatment plants and pumping stations.
This was the outcome of a series of measures taken to boost the wastewater collection systems consisting of:
The dehydrated sludge is generated at four plants: Los Maitenes (La Ligua), Cordillera (Los Andes), Almendral (San Felipe) and El Molino (Quillota).
As of December 2008 and throughout 2009, all the dehydrated sludge generated at the La Ligua, San Felipe, Los Andes and Quillota plants was disposed at the KDM Lomas Los Colorados sanitary landfill in Til-Til, and was disposed with urban solid waste.
43Esval Sustainabil ity Report 2009
• Increasing or boosting the mobile guard operational coverage, especially during the summer.
• Special plan to clean wastewater pumping station (EEAS) wells and screens.
• Special plans to review pumps, generators and switchboards.
• Co-ordination of the maximum diesel load of generators.
• Acquisition of new pumps and generators.
• Special plan to clean critical collectors.
Despite this, if discharges arise, the following is the procedure for dealing with them:
1. General clean-up of the collector using water jet and combined trucks.
2. Clean-up and sanitization of the backyard of houses located in the sector.
3. Street clean-up and sanitization.
4. Removal of the wastewater-contaminated material and repair of the earth road by filling it with borrowed fill material.
5. A sample shall be taken of the water from the coastline affected to assess the impact of the wastewater spill.
6. The environmental authorities shall be informed, reports be issued and the environmental impact be assessed.
SewerOverflows
Wastewater can upwell and spill onto roads and inside housing, mainly due to third-party misuse of the sewer system and deficiencies of the public wastewater collection system.
These operational emergencies are specific cases, but more frequent and less serious, and their hydraulic solution18 is managed through the internal operational service system (SISDA).
In addition to this, for these kinds of faults the area where the wastewater spill and/or run-off have occurred is cleaned and disinfected to mitigate the damage caused.
Should there be damage to chattels or real estate damage, a special report is issued by a damage inspector to subsequently, through the legal advisor, compensate if applicable, and reach an indemnity agreement with the party affected.
In 2009, there were an average of 105 co-llector obstructions a month with upwelling on the highway and/or customers’ homes affected, which was a 52% drop on the 218 average obstructions a month in 2008. This decrease was due to a special plan to clean up critical collectors and the annual mainte-nance plan.
Chemical Emergencies
There were three chemical emergencies in 2009, which can be qualified as isolated if one considers that 80 facilities of Esval make intensive use of these raw materials throughout the year.
• There was a leakage of chlorine gas in the booster pump room of the chlorine dosage system of the Cordillera de Los Andes wastewater treatment plant, which was contained by closing the container valves. The lines and equipment affected were repaired and cleaned and operators were retrained on handling chlorine gas containers.
• The chlorination system vent was activated at the El Llano de Putaendo drinking water plant and chlorine gas was released into the atmosphere, which was quickly rectified and there were no consequences.
• There was also an emergency caused by third parties spilling liquid and solid industrial waste (RILES) from the plant of CODELCO’s Andina Division at Saladillo into the river Blanco. This river supplies the El Sauce de Los Andes surface drinking water plant. The surface area of the plant therefore had to be shut down for 7 hours as a preventive measure with operation using borings, and samples were taken from the river to assess the impact of the spill but there was no contamination.
18 The hydraulic solution entails repairing or unblocking piping to restore the sewer to normal operation.
02 Controlling Our Environmental Impact
44
02.6 RAW MATERIALS
Chemicals like chlorine gas, sodium hypochlorite, ferrous chloride, aluminum sulfate and fluoride are the main raw materials required in the drinking water production and wastewater treatment processes. Due to the potential risks of some of these elements, Esval has a series of procedures and instructions for the operational handling of these substances during transportation, loading and unloading, storage and dosage stages. These criteria also include action guidelines in emergencies like spills and leakages to protect workers and prevent toxic emissions from being released into the environment.
Regarding this, in 2009 Esval invested CLP40 million in building 61 chemical containment systems to prevent the contamination of the soil and groundwater if there is a spill. Such situations are set forth in Supreme Decrees (D.S.) 148 and 46.
Another significant raw material is piping of different material and diameter for drinking water distribution and wastewater collection.
95,794 meters of piping were added to Esval’s network in 2009, with the drinking water network accounting for 41,699 meters and the wastewater network for 54,095 meters.
45Esval Sustainabil ity Report 2009
Main Raw Materials 2007-2009
DRINKING WATER WASTEWATER TOTAL
2007
452,806
151,559
428,107
985,521
103,426
230,676
36,575
5,973
45,577
14,713
CHEMICALS
CHLORINE GAS (KG)
FLUORIDE (KG)
FERROUS CHLORIDE (KG)
ALUMINUM SULFATE (KG)
SODIUM HYPOCHLORITE (L)
CAUSTIC SODA (L)
ACTIVATED CARBON (KG)
LIME (KG)
POTASSIUM PERMANGANATE (KG)
HERBICIDE (L)
SALTPETER (KG)
SALT (KG)
SULFURIC ACID (L)
CATIONIC POLYELECTROLYTE (KG)
SODIUM CARBONATE (KG)
CALCIUM HYPOCHLORITE (KG)
POLYMER (KG)
COPPER SULFATE
2008
489,049
164,597
423,178
1,319,577
111,359
216,805
59,466
7,945
46,462
17,319
1,611
2009
666,452
163,881
379,261
1,112,680
133,138
196,326
48,122
5,636
52,097
11,795
997
2007
149,288
119,753
80
455,519
4,177
6,925
268,987
1,000
40,106
1,759
2008
168,078
120,708
489,463
64,205
8,650
94,703
39,302
1,524
2009
194,893
96,682
440,027
104,889
37,121
4,370
36,262
1,345
2007
602,094
151,559
547,860
985,601
558,945
234,853
43,500
268,987
5,973
1,000
45,577
14,713
40,106
1,759
2008
657,127
164,597
543,886
1,319,577
600,822
281,010
68,116
94,703
7,945
46,462
17,319
1,611
39,302
1,524
2009
861,345
163,881
475,943
1,112,680
573,165
301,215
48,112
37,121
5,636
52,097
4,370
11,795
997
36,262
1,345
02 Controlling Our Environmental Impact
46
ENERGY
Direct energy consumption from primary sources
The generators at the drinking water and wastewater treatment plants and stations consumed 724 m3 of diesel in 2009 to generate electricity, which was a 19.6% drop in fuel consumption on the 901 m3 consumed in 2008. This was due to the lower use of this backup equipment during peak hours on account of a special contract entered into with electric power generating companies.
Direct energy consumption from secondary sources
The table below shows the total use of electric power in each of the drinking water production and distribution and wastewater collection and treatment processes.
02.7
Direct Electric Energy Consumption (kWh)2007-2009
ENERGY CONSUMPTION
DRINKING WATER PRODUCTION & DISTRIBUTION
WASTEWATER COLLECTION & TREATMENT
OFFICES & FACILITIES OUTSIDE THE PROCESSES
TOTAL kWh
2007kWh
56,703,019
30,677,284
1,141,548
88,521,851
2008kWh
69,356,024
29,601,981
1,035,197
99,993,202
2009kWh
70,438,689
30,039,078
1,147,881
101,652,648
47Esval Sustainabil ity Report 2009
Esval launched an energy efficiency plan in 2008 with a target of reducing energy consumption at its commercial and administrative facilities. A 2.45% reduction in electric energy consumption was attained in 2009 due to the optimization of electrical installations and the dissemination of good practice in energy use.
Direct Electric Energy Consumption at Commercial and Administrative Facilities (kWh)2008-2009
YEAR
2008
2009
TOTAL KWH
TOTAL ANNUAL CONSUMPTION
1,228,886
1,198,850
48
03
48
OUR CUSTOMERS
The commercial and development management is in charge of establishing and developing Esval’s customer relations. This is done by processes defined in the Company’s integrated management system, which cover all the interrelations that can be established with the customer, categorized into the following areas:
• New customers (new services).• Commercial cycle (billing, collection and payment).• Customer service (customer service and service processing).• Contact with the community (continuous improvement of the service, process efficiency).
To optimally address each of these areas, the commercial and development management has customer service and new service assistant managements. These units are in ongoing communication with the operations and engineering managements, which allows
03.1
49Esval Sustainabil ity Report 2009
for constant coordination to assure product quality, harmlessness and safety.
Esval’s commitment is to provide the best service to its customers to make a contribution to the community in terms of health, quality of life and regional development.
The work of management in 2009 was focused on: stepping up direct contact with the community and social organizations, the optimization of its customer service Call Center, setting up roundtable meetings with neighbor committee leaders and local authorities, mitigation plans after network renewal works, scheduled water cuts, and assessing customer satisfaction.
Customer Classification
Based on the characteristics, location and needs of its customers and to provide them a more satisfactory service according to their
requirements, Esval’s commercial activities are split into two large groups of users.
1. Household or Residential Customer
This includes household connections to the drinking water network and/or public sewer network. These are continuous services 24 hours a day, 365 days a year, also including:
Customers from High-Risk Sectors
These are low-income customers, sometimes below the poverty line, who benefit from a drinking water consumption subsidy, and other programs like Up-To-Date with Esval.
2. Commercial and/or Industrial Customers
This category includes all those customers who undertake productive activities or services, such as supermarkets, hotels, restaurants, etc.
Customer Relations
03 Customer Relations
50
CUSTOMER SERVICE AND SATISFACTION
The customer service process enables Esval to maintain permanent contact with customers and thereby meet their needs and address their concerns. This process is made up of three main service channels:
1. Telephone service (Call Center).2. Personal service (23 commercial offices).
03.2 3. Written communication service (letters and website).
The commercial service received by any of these three channels is classified as: inquiries20, complaints21 and requirements22.
The commercial service is classified and sent to the commercial and development management for analysis, solution and reply. The latter is available in the company’s commercial system.
The operational service is classified and sent to the operations management for verification and solution, if applicable. Site action is also logged in the commercial system for subsequent customer consultation.
The main reasons for customer requests are: commercial situations largely related to information on water bills, consumption metering and the feasibility of receiving service, and operational situations related to site works.
19SISS management report 200920Any information request that involves providing data, general information or advice is resolved immediately.21Any customer service request or requirement that is a complaint (explicit or implicit) about the service received.22Any customer requirement, which is answered by company action to give the customer a new service, expand that currently provided or modify the data in the company database.
Customers by real estate purpose and type of service19
COMPANY
ESVAL S.A.
CUSTOMERS BY REAL ESTATE PURPOSE
TOTAL CUSTOMERS 2009
529,951
2009 SHARE
12.07%
RESIDENTIAL
502,167
COMMERCIAL
25,037
INDUSTRIAL
783
OTHER
1,964
CUSTOMERS BY TYPE OF SERVICE
DRINKING WATER AND SEWERAGE
475,593
JUST DRINKING WATER
53,667
JUST SEWERAGE
691
51Esval Sustainabil ity Report 2009
It should be highlighted that the Superintendency of Sanitary Services (SISS) released the study “Water Utility Service Quality Insight” in the first half of 2010. This was undertaken late 2009 through early 201023 to assess the impressions and experiences of customers supplied by the 20 largest water utilities operating in Chile.
The study envisaged a sample of 8,773 customers distributed throughout the country, considering customers living in the regional capitals and also in the main towns.
The following was the outcome of this insight survey:
23Period before the earthquake and tsunami of February 27.
Number of Complaints-Inquiries 2008 - 2009
EXCESSIVE CONSUMPTION AND READING
DEBRIS & OTHERS IN THE STREET
METERS
OTHER COMMERCIAL REASONS
TOTAL PER REPLY
GENERAL TOTAL
CUSTOMERS B COMMERCIAL
RATE [(COMPLAINTS/ CUSTOMERS)* 100]
REASON
2008
COMMERCIAL COMPLAINTS SISDA
IN THE CUSTOMER’S
FAVOR
6,246
117
1,604
2,222
10,189
5,867
71
265
6,597
12,800
308
308
497,990
970
970
22,989
4.62
1,278
0.26
TOTAL2008
12,113
1,466
1,869
8,819
24,267
24,267
4.87
2009
SISDA
4,242
150
2,118
3,707
10,217
6,911
76
564
7,045
14,596
450
450
510,286
687
687
24,813
4.86
1,137
0.22
TOTAL2009
11,153
1,363
2,682
10,752
25,950
25,950
5.09
ATTRIBUTE
OVERALL SATISFACTION WITH THE SERVICE RECEIVED
DRINKING WATER SERVICE EVALUATION
SCHEDULED DRINKING WATER CUTS
SEWERAGE SERVICE EVALUATION
TELEPHONE SERVICE
SITE SERVICE
STREET WORK
COMMERCIAL OFFICE SERVICE
BILLING DOCUMENTS: WATER BILL
METER AND METER READING
PAYMENT OF BILLS
AVERAGE SCORE OF THE SECTOR
2008 2009
5.5
5.3
4.4
4.9
5.0
5.0
5.4
5.3
5.8
5.7
5.9
5.6
5.3
5.5
5.2
5.0
5.4
5.4
5.4
6.0
5.8
6.0
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
COMMERCIAL COMPLAINTS
NO RATIONALE
IN THE CUSTOMER’S
FAVOR
NO RATIONALE
IN THE CUSTOMER’S
FAVOR
NO RATIONALE
IN THE CUSTOMER’S
FAVOR
NO RATIONALE
03 Customer Relations
52
In the particular case of Esval, the Company obtained a score of 5.9, which was an increase on the 5.6 score attained in the 2008 survey. The 2009 score ranks Esval in third place in Chile, after Aguas del Valle (an affiliate of Esval in first place, which provides services in the Coquimbo Region).
In the particular assessment of Esval regarding the eleven variables analyzed, it can be seen that for all the customer contact channels (telephone service, site service, commercial office service) the score was higher than in 2008, which reflects the work done last year on policies, targets and community engagement strategies.
Score attained by Esval
ATTRIBUTE
OVERALL SATISFACTION WITH THE SERVICE RECEIVED
DRINKING WATER SERVICE EVALUATION
SCHEDULED DRINKING WATER CUTS
SEWERAGE SERVICE EVALUATION
TELEPHONE SERVICE
SITE SERVICE
STREET WORK
COMMERCIAL OFFICE SERVICE
BILLING DOCUMENTS: WATER BILL
METER AND METER READING
PAYMENT OF BILLS
SCORE ATTAINED BY THE COMPANY
2008 2009
5.6
5.3
4.3
5.2
5.1
4.9
5.1
5.5
5.9
5.8
6.2
5.9
5.6
5.8
5.5
5.3
5.7
5.6
5.8
6.1
6.1
6.2
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
53Esval Sustainabil ity Report 2009
Customer Satisfaction Survey
As part of its service quality continuous improvement policy, Esval undertakes periodic customer satisfaction surveys. The information obtained by the Company results in traceable and measurable action plans, which each management is involved in until better rates are attained.
Every year Esval undertakes at least two service quality surveys to appraise the degree of customer satisfaction with the service. The results of these surveys are disseminated to the different areas to strengthen the positive aspects and work on current weaknesses by generating projects and action for improvement.
The survey result reveals an improvement on 2008, with a 4-point increase in customer insight of the service quality provided by Esval.
Another important highlight in the area of customer access to the commercial and operations area was the improvement of the customer telephone service (Call Center) in 2009 to boost daily analysis and for online assessment of calls and assignment of responsibilities by work areas.
Customers were surveyed after they had made calls in the April to December 2009 period to assess the service quality received. The following were the questions asked:
• Waiting time to be attended.
• Friendliness of the telephone operator.
Customer Satisfaction Survey Result
6 & 7 SCORE %
SERVICE QUALITY PROVIDED
REQUIREMENT RESPONSE TIME
COMPLAINT RESPONSE SERVICE
CORDIAL USER SERVICE
FOCUSED ON MEETING THE CUSTOMER NEEDS
CLEAR AND ACCURATE WATER BILLS
SUITABLE SERVICE CHARGES
2008
61
55
51
66
55
59
49
65
51
51
68
51
61
51
2009
• Telephone operator’s willingness to solve their problem.
• Clarity of the response given.
• Overall telephone service.
03 Customer Relations
54
The graph below shows the overall telephone service level in the result of these surveys. It should be highlighted that the satisfaction level exceeded 80 points throughout the assessment period, considered to be a level of telephone service excellence.
The following are the main customer service and satisfaction challenges in 2010:
• Telephone Service: Innovation of the personalized customer contact procedure to inform them of the results of their concerns, requirements and complaints as soon as possible to improve customer insight.
• Commercial Offices: Development and implementation of new technologies to enhance the service quality by means of modern self-consultation equipment, which is a technological system that allows for online monitoring. A project will also be launched in 2010 to modernize the look and comfort of the commercial offices.
• Integrated customer response system: Implementation of a continuous customer communication improvement process.
Telephone Service SurveyOverall Telephone Service
Scores of 1 to 4
Scores of 6
Scores of 7
Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
-10%
-6
30
54
-6
28
55
-7
24
60
-5
23
63
-2
27
61
-3
65
24
-4
62
26
59
27
-5
59
-6
26
Percentage
55Esval Sustainabil ity Report 2009
CUSTOMER INFORMATION AND SUPPORT
Customer Information
Esval’s main concern is its customers and its actions are focused on continuous improvement of the service quality in a context of supporting the region’s social, economic and environmental development.
Ongoing customer and general community contact and information are therefore essential. Regarding this, in 2009 the Company started to develop a project, which will be fully implemented in late 2010, to modernize the quality and utility of its website.
The changes are focused on changing the image and on providing a quicker service and better quality of information to users. Besides this, it will be boosted as a virtual branch, becoming a new communication channel, enabling water bills to be paid online, requirements and complaints to be entered and followed up, and an agreement to be simulated and generated, among other functions. With all this, the Company aims to increase customer communication through this channel in line with the progress of technology and the facilities provided by the internet.
Moreover, and taking advantage of the positive experience of previous years, the
03.3 commercial service will be boosted by establishing work roundtables with social organizations, especially with the communal associations of neighbors’ committees and social organizations. It will thereby engage with the leaders, who in turn receive and transmit community concerns. 30 work roundtables were established in 2009.
The way Esval informs the community about issues like subsidies, scheduled water cuts, works and others is outlined below.
• Subsidies: This information is provided jointly with the social departments of the different Municipalities, based on the subsidies available. All customers with the benefit already granted are also given information on their water bills, at the offices and by means of the telephone service before the expiry date. This is so customers renew the benefit before the expiry date. It is important to mention that this information is also provided in the different workshops the Company holds with the neighbors’ committees. The subsidy coverage percentage in the region was 98% as of December 2009 due to information activities, along with those of supporting the securing and renewal of subsidies.
• Scheduled water cuts: Pursuant to the sanitary regulation, all customers affected must be informed of all scheduled water cuts at least 48 hours in advance. Besides this information and depending on the quantity of customers affected, on the
sector and their location, the Company works with a water cut committee, which in practice has the objective of reducing the impact of the supply interruption, either by installing tanks or hydropacks (an automatic water pressurization system that is connected to the water mains). There were 238 scheduled water cuts in 2009.
SCHEDULED WATER CUTS
UNSCHEDULED WATER CUTS
CUSTOMERS AFFECTED
2008
239
2,695
618,806
VARIATION2009
238
2,237
595,181
-16%
-4%
03 Customer Relations
56
• Works: There is a systematic customer information delivery procedure for investment works carried out by the Company in different areas.
Information is delivered by means of meetings of Esval’s customer assistant management team with neighbors’ committees, communal associations, local health councils, among others, in sectors where the works will be undertaken to give them details of the timescales and stages of the works, the benefits for the sector and the mitigation works implemented.
Action was stepped up in 2009 to inform the general community and social organizations about providing information on works to be carried out in the year, particularly those concerning network renewal. Site meetings were therefore encouraged, summoned through the neighbors’ committees, which enabled the communities to clearly understand the scope of the works to be undertaken, their benefits and timescales, the amounts involved and the mitigation measures such works would have on the environment.
Customer Support
As already mentioned, Esval’s commitment is to provide the best customer service to make a contribution to the community regarding health, quality of life and regional development.
A large portion of the Company’s activities are therefore focused on supporting its low-income and/or high-risk customers to facilitate access to drinking water and treatment.
The following are the main programs undertaken by Esval for this:
Training on the responsible use of sewers and water
The “Up-To-Date with Esval” program has 3 execution stages. The first concerns the target sector of this program (high-risk customers with less than 11,000 points on the social protection record), and all these customers are contacted and visited on site
by a team of social workers. The second entails inviting them to an education workshop on water consumption and the responsible use of sewers, which is undertaken at the different commercial offices. After this workshop has been completed, a debt repayment agreement is entered into with each of them, which they must pay in monthly installments with the commitment that for each installment paid Esval will reduce the last installment of the agreement. The third and final part consists of giving these same customers a plumbing workshop to give them the tools needed so they can fix any faucet or toilet wear and tear in their homes.
57Esval Sustainabil ity Report 2009
Support for securing and renewing drinking water subsidies
Every three years there is a mass expiry of drinking water subsidies. At such time, Esval coordinates with the different social departments of the municipalities to offer support for renewing these subsidies.
Regarding this and to collaborate so all the people meet the requirements set forth in the regulation and can get a drinking water subsidy (SAP), in 2009 Esval coordinated a series of meetings with the community development departments (DIDECOS), which cover relations with organizations
Up-To-Date with Esval Workshops and Agreements2007-2009
VALPARAÍSO
QUILLOTA-PETORCA
SAN FELIPE-LOS ANDES
SAN ANTONIO
2007 TOTAL
PROVINCES
209
34
43
39
325
Nº OF WORKSHOPS
2,479
334
482
177
3,472
AGREEMENTS SIGNED
VALPARAÍSO
QUILLOTA - PETORCA
SAN FELIPE - LOS ANDES
SAN ANTONIO
2008 TOTAL
222
55
75
54
406
2,241
370
285
742
3,638
VALPARAÍSO
QUILLOTA - PETORCA
SAN FELIPE - LOS ANDES
SAN ANTONIO
2009 TOTAL
225
72
51
83
431
2,273
591
883
304
4,051
SUBSIDIES ASSIGNED
% OF SUBSIDIES ASSIGNED
% OF CUSTOMERS WITH SUBSIDIES
2007
87,117
95.20
17.76
2008
89,117
95.72
17.81
2009
91,693
97.91
17.89
Subsidies Assigned2007-2009
like the social programs of municipalities. On this occasion, the Company worked with the DIDECOS of the provinces of Quillota, Petorca, San Felipe, Los Andes and Greater Valparaíso. In the latter case, the head of monetary benefits and social protection record of the Planning Ministry (MIDEPLAN) also attended the meeting held.
The results of these proceedings in 2009 enabled 97.91% of a total of 91,693 subsidies to be assigned. 17.89% of Esval’s total customers currently have this important benefit.
PROVINCESNº OF
WORKSHOPSAGREEMENTS
SIGNEDPROVINCES
Nº OF WORKSHOPS
AGREEMENTS SIGNED
03 Customer Relations
58
Support for High-Risk Sectors
Areas that have no access to services like drinking water, sewers, electric power and connectivity to towns are classed by the authorities as high-risk sectors. It is deemed that satisfying this deficiency is a priority so families can live with the minimum standards of civilization.
In its unwavering commitment and support of the poorest sectors, Esval accepted
the request for support from the regional government to analyze a sanitary solution for high-risk sectors defined by the Planning Ministry (MIDEPLAN).
Among other activities, in 2009 Esval participated on various regional working roundtables to analyze the general situation of high-risk sectors. It should be highlighted that with the support of the region’s municipalities, MIDEPLAN drew up and delivered Esval a new list of high-risk
sectors, which increased from 360 to the current 450 sectors.
After studying and analyzing this information, Esval reviewed the new sectors defined by the authority, which meet the conditions for undertaking a conceptual study on a technical solution for supplying drinking water and collecting and treating wastewater. The result of this study is shown in the table below:
Table summarizing the classification of sectors on the list of high-risk sectors 2009
HIGH-RISK SECTORS
8
718
41,884
2,327
QUANTITY OF SECTORS PER DISTRICT
QUANTITY OF HOUSES WITH A DRINKING WATER BENEFIT
LENGTH OF DRINKING WATER NETWORKS (M)
QUANTITY OF HOUSES WITH A SEWERAGE SYSTEM BENEFIT
LENGTH OF SEWERAGE NETWORKS (m)
SECTORS WITH RURAL DRINKING WATER (APR)
WITH APR DESIGN
WITH APR WORKS
17
2,098
60,560
4,163
5,406
SECTORS WITH
PROJECTS
27
459
12,421
2,437
15,792
SECTORS WITH WORKS EXECUTED
OR BEING EXECUTED
6
350
5,334
561
9,427
SECTORS WITH A CONCEPTUAL
STUDY IN 2008
60
4,078
54,402
5,325
98,691
159
5,778
12,957
SECTORS THAT WILL NOT BE ADDRESSED WITH A
CONCEPTUAL STUDY
REQUIRES COMPLEX SOLUTION
LANDS TO BE EXPROPRIATED
12
219
425
SECTORS TO BE ANALYZED FOR THE
POSSIBILITY OF UNDERTAKING
A CONCEPTUAL STUDY
161
4,416
7,322
11,232
16,707
TOTAL SECTORS ON THE LIST OF
HIGH-RISK SECTORS 2009
450
18,116
181,923
39,427
146,023
59Esval Sustainabil ity Report 2009
In 2010 Esval hopes to carry out 16 conceptual studies of the current list of high-risk sectors. It will also undertake the detailed drinking water and sewerage engineering projects and their related household projects for the high-risk sector called Parcela 15 where 211 families live. Rural Drinking Water (APR)
Pursuant to Law N°19.549 of 1998, the urban sanitary service concession companies shall provide technical and administrative assistance to the rural drinking water committees and cooperatives in their respective regions and undertake the activities needed to carry out reimplementation and improvement works and design new rural services, all this upon the request of the Ministry of Public Works. Assistance includes accounting and technical issues and the management of the design and works for rural drinking water systems, training and technical inspection.
The rural drinking water program is supervised by the Department of Sanitary Programs (DPS) belonging to the Department of Hydraulic Works (DOH).
Esval signed an agreement with the DOH as of May 2009, whose aim is to provide technical assistance to the rural drinking water committees and cooperatives and manage the investment projects that have state financing for this program. The following is a breakdown of the scope of activities:
• Technical Advice: entails advising on 150 rural drinking water systems present in the Valparaíso Region regarding administrative, technical, accounting and social issues, and promoting the self-management of the service. Such advice also covers those new systems that arise during the effectiveness of this agreement.
• Project Management: consists of developing the pre-investment and investment stages of the studies and works of the rural drinking water program in the region. For this, the studies are tendered, the tender award is proposed, hiring and
24SISS management report 2009.
technical inspection are made, and the studies are finally approved, or the works are given reception, as the case may be.
• Direct Advice to the DOH: advice on the feasibility of providing a drinking water supply, participating in coordination meetings with the DOH and issuing reports.
As of December 2009, Esval provided technical advice to a set of 147 APR systems, which benefit an estimated population of 150,534 inhabitants24.
03 Customer Relations
60
workplace. Two high value instruments, the atomic absorption spectrophotometer and a gas chromatograph, were recently renewed. They detect metal levels and organic products, respectively.
b. Process Control
Processes are controlled by means of samples that are taken at different stages of the
PRODUCT/SERVICE QUALITY AND SAFETY
To maintain the current service quality and continuity, there is a quality control system with technology applied to each of the processes.
a. Laboratory
Esval has a renowned national laboratory, which makes approximately 150,000 analyses a year, mainly bacteriological, physical and chemical analyses, from samples taken from the whole region.
The laboratory has competent personnel and state-of-the-art equipment to control the composition of the drinking water supplied and monitor correct wastewater treatment and disposal and the quality of the natural water bodies that receive it.
The laboratory works with a quality assurance system certified by the National Standards Bureau (INN), according to the criteria laid down by the SISS. Moreover, it has been certified by the INN pursuant to the NCh ISO 17.025 standard as of 2004, which regulates the operation of national and international test laboratories.
Esval’s laboratory has a total surface area of 915 m2, distributed on two floors containing the biological and chemical areas, with a total of 25 examination and analysis rooms. The large size of this building ranks it as one of the top laboratories in Chile to allow for a better
03.4 operation and from the final product. In the case of wastewater treatment, for example, this is measured based on the water quality of the receiver medium (rivers, brooks or the sea).
Samples to measure process efficiency are obtained from:
61Esval Sustainabil ity Report 2009
• Drinking water networks, to verify that the quality of the water received in households is compliant with the current regulation.
• Marine outfalls and seawater, to verify that these systems do not generate fecal contamination of the coastline, mainly on the beaches of the entire coastline in the region from Llolleo to Papudo.
• Liquid industrial waste (RILES) discharged into Esval’s collectors, to assure they comply with Supreme Decree 609 and allow for the suitable operation of collectors and wastewater treatment plants.
TYPE OF ANALYSIS ANNUAL Nº
53,024
26,512
33,360
112,896
• Drinking water plants (PTAP), to control and assess the purification process undertaken during the production process.
TYPE OF ANALYSIS ANNUAL Nº
1.008
16.584
17.592
• Wastewater treatment plants (PDAS), where checks are made that discharges of waste into surface water courses meet the requirements laid down for these systems.
PDAS BACTERIOLOGICAL ANALYSES
PDAS CHEMICAL ANALYSES
TOTAL PDAS ANALYSES
TYPE OF ANALYSIS ANNUAL Nº
1,488
11,328
12,816
MARINE OUTFALL & COASTLINE BACTERIOLOGICAL ANALYSES
MARINE OUTFALL & COASTLINE CHEMICAL ANALYSES
TOTAL MARINE OUTFALL ANALYSES
TYPE OF ANALYSIS ANNUAL Nº
2,676
5,526
8,202
CHEMICAL ANALYSIS OF RILES
TOTAL ANALYSES
TYPE OF ANALYSIS ANNUAL Nº
1,128
1,128
DRINKING WATER NETWORK BACTERIOLOGY
DRINKING WATER NETWORK TURBIDITY
DRINKING WATER NETWORK CHEMICAL ANALYSES
TOTAL DRINKING WATER ANALYSES
PDAS BACTERIOLOGICAL ANALYSES
PDAS CHEMICAL ANALYSES
TOTAL PDAS ANALYSES
1,488
11,328
12,816
03 Customer Relations
62
c. Technology
The operating work of all the company’s processes is supported by new technologies that have been incorporated to the processes, like:
• Portable meter to assess the flow of wastewater in sewer drains, and it is also useful for open wastewater channels and unprocessed water courses.
• Noise loggers, which indicate what stretches of the drinking water network have leakages.
• Metal piping finder to locate all the underground piping and identify the laying of other services (electricity, telephony, gas, etc.), preventing unnecessary road surface breakage.
• Acoustic correlator to detect where there are drinking water network leakages.
• Data logger equipment programming and installation on macro meters to measure the flow.
• Data logger equipment programming and installation in the drinking water network to measure the pressure.
• Installation of portable electronic equipment and Doppler flow meters in wastewater piping. These are used to contrast fixed pressure main pump flow meters.
• Metal detector to detect metal sewer drain covers and valve rings underground.
• Television inspection to review and diagnose the inside condition of collectors and household connections.
• State-of-the-art atomic absorption spectrophotometer for multi-parameter measurement and automatically-controlled gas chromatograph added to Esval’s laboratory.
• Pilot ozone testing at the Peñuelas plant to eliminate the organic parameters.
All these analyses are part of the following approximately 15 control programs of different periodicity, which are controlled by bodies like the SISS, the Health Ministry and the General Directorate of Maritime Territory and Merchant Navy (DIRECTEMAR), among others.
1. Bacteriological control program and drinking water network disinfection.
2. Bacteriological control program of surface water and groundwater sources (pursuant to the Nch 409 standard and SISS).
3. Chemical control program of drinking water networks.
4. Chemical control program of surface water and groundwater sources.
5. Bacteriological control program of distribution tanks.
6. Fluoridation control program of drinking water networks.
7. Fluoridation control program of production subsystems.
8. Bacteriological control program of wastewater treatment systems.
9. Chemical control program of wastewater treatment systems.
10. Bacteriological control program of seawater - effluents, beaches, marine environment (PVA) - of the areas where collectors that discharge into water bodies operate.
11. Chemical control program of seawater – effluents, beaches, marine environment.
12. Direct control program of discharges of liquid and solid industrial waste (RILES) at industries that discharge into our sewer system.
13. Control program of solid waste of wastewater treatment plants.
14. Physical and chemical follow-up programs of production systems.
15. Raw material quality control program.
63Esval Sustainabil ity Report 2009
SUPPLIER RELATIONS
Esval’s relationship with its suppliers is handled directly by the finance and administration management through the contracts area and procurement department.
The Company has not laid down policies or guidelines explicitly establishing Esval’s form of relationship and the way of working with its suppliers. Nevertheless, all critical product suppliers from the environmental standpoint shall be governed by the guidelines in force
03.5 for their transport and unloading. Such guidelines control correct product labeling and handling and suitable information on their composition to be able to act efficiently in any emergency.
Compliance with these guidelines is controlled by Esval’s personnel by means of a Verification of Environmental Aspects log at the time of transporting and unloading these kinds of products.
Suppliers of critical goods are recorded and classified according to whether they have
ISO 9001, ISO 14001 and/or OSHAS 18001 certification. In addition, such suppliers are subject to a monthly assessment process, which considers criteria like meeting deliveries, product quality and after-sales service.
For the rest of the goods or services purchased by the Company, suppliers are only selected based on technical and financial assessments, on economic advantage and/or the delivery conditions of the good or service.
90% of the Company’s suppliers were Chilean in 2009, and purchases from foreign suppliers were only made in specific cases. Nevertheless, there is no explicit guideline giving priority to purchases from Chilean companies.
64
04.1 OUR EMPLOYEES
Esval strives so that for its employee relations each person in the organization can attain high professional development in an environment of wellbeing and safety. All the organization’s managements are accountable for achieving this transversal aim of the company and the programs related to this area, including compliance with labor legislation and respect for human rights. This work is led and coordinated by the human resources management.
In 2009, this management focused on improving the organizational environment, which included implementing a formal system to measure the internal climate. A qualitative and quantitative assessment methodology was designed for this, and different plans were also drawn up to boost the internal communication of each area. Complementing
04
65Esval Sustainabil ity Report 2009
this, “human resources workshops” were held for all Company staff and they will be outlined below.
The highlight of this area’s management was securing certification pursuant to the OHSAS 18001:2007 international standard in February, which distinguishes Esval as a company that is concerned about the safety and health of all the work of its employees.
The human resources policy includes a series of commitments to develop good practice in employee and collaborator relations:
• Incorporation and Provision: related to the processes of induction, staff selection and encouraging the internal hiring of staff.
• Payment and Organization: its focus is to pay salaries and incentives and maintain
a horizontal-type organizational structure. It considers the description, analysis and assessment of job positions, performance evaluations and remunerations.
• Training and Development: related to the competencies of employees and their personal and professional development.
• Health and Wellbeing: focused on improving the quality of life of employees and their families.
•Quality:aimed at the job position structure, service quality and supplier relations.
Esval undertakes detailed selection processes to hire its employees, as it deems this is the best way of guaranteeing fair opportunities to people and work teams. Formal procedures have been established for the recruitment and selection of new employees and induction processes related to values, regulations and
conduct required by Esval. The Company’s main recruitment source is its own staff, enabling the growth and professional development of those who are already part of the organization.
Employee Relations
04 Employee Relations
66
04.2 GENERATING QUALITY EMPLOYMENT
Esval’s workforce amounted to 360 employees for the year ended December 31, 2009, 1.97% down on that in 2008. This decrease was mostly due to employees retiring in the operations area and to the existence of some vacancies at the end of the year. The average age of employees was 45.73 years.
Esval generated approximately 1,334 indirect jobs (more than three million man-hours) by hiring services, which was a 6.7% increase on 2008. This was mainly due to greater coverage of some services.
Employee Breakdown by Level
LEVELS
ADMINISTRATIVE
EXECUTIVE
MIDDLE MANAGEMENT
WORKERS
PROFESSIONALS
TECHNICIANS
TOTAL
2007
27
8
35
77
120
111
378
2008
26
8
33
79
125
96
367
2009
25
8
42
71
118
96
360
EMPLOYEE PERCENTAGE BY ORGANIZATIONAL LEVEL
SENIOR MANAGERS AND EXECUTIVES
PROFESSIONALS AND TECHNICIANS
ADMINISTRATIVE AND WORKERS
2007
2%
70%
28%
2008
2%
69%
29%
2009
2%
71%
27%
Employee Breakdown by Organizational Level
67Esval Sustainabil ity Report 2009
Job Positions Filled By Men & Women (2007-2009)
2007 2008 2009
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Men
Women
Emp
loye
e Pe
rcen
tag
e
98% of the Company’s total workforce has an indefinite contract. It should be highlighted that Esval offers formal and attractive working conditions that are in keeping with the labor market, aimed at allowing for the permanence and development of the potential of each person. Employees have payment, compensation and incentive schemes in keeping with the market that generate stability. These incentives contribute towards staff achieving the Company’s objectives and adopting appropriate conduct that improves operations.
Total Company Workforce by Type of Contract
TYPE OF CONTRACT
INDEFINITE
FIXED-TERM
TOTAL
2007
376
2
378
2008
360
7
367
2009
356
4
360
Years
85%
15%
83%
17% 16%
84%
04 Employee Relations
68
Initial Company versus Minimum Legal Wage Ratio
YEAR
2007
2008
2009
ESVAL MINIMUM WAGE
331,274
372,319
410,195
LEGAL MINIMUM WAGE
144,000
159,000
165,000
VARIATION OR RATIO
130%
134%
149%
The average of the total annual taxable amount paid was considered to calculate them.
Benefits for All Employees:
•Health: Preventive health checkup and advice on collective health insurance company (ISAPRE) plans.
•Social service: Professional service concerning health, housing, the family, education, etc.
•Allowances:
• Severance payment with no legal limits25.
• Half-yearly salary readjustment according to the Consumer Price Index (CPI).
• Payment of nurseries and day-care centers for children of up to 4 years old.
• Salary complement due to medical certificate.
• Leave of absence without pay.
•Social security and prevention: Ongoing advice on retirement due to age and disability and choice of voluntary social security saving.
25 This is a benefit for unionized workers and a percentage of non-unionized workers depending on years of service.
•Sports, recreation and culture: Encouragement to play sports, holding of internal competitions, participation in inter-company tournaments and recreational workshops.
•Agreements: Coverage of hospital, medical and dental care, agreements with sports establishments, gymnasiums and opticians.
69Esval Sustainabil ity Report 2009
TRAINING, DEVELOPMENT AND EMPLOYABILITY
The development of people in the Company is aimed at suitable management of knowledge, performance excellence and the ability to interact. To attain this, organizational environments are created that promote the development of technical, professional, work and personal aspects. Esval thereby seeks to drive teamwork, develop participative systems and above all encourage creativity and participation in the continuous improvement of the entire organization. This is part of the so-called human development project.
E-learning was added to the traditional learning methodologies in 2009. Complementing this, it has been made easier for employees to participate in different
04.3 classroom training workshops to reduce the levels of stress and improve their health and quality of life. For Esval, further development courses are a significant way of developing people as they drive new abilities and skills that consolidate their employability and promote a service spirit.
A major highlight is the holding of the annual day event for all Company personnel called human resources workshops, which this year was focused on two core elements for the Company: a “pleasant environment” and “innovation.”
185 courses and seminars were held in 2009, which covered all the Company’s employees. The 17,272 hours of training given were equivalent to an average of 47.4 hours per employee a year, which means that training accounted for around 2.2% of collaborators’ working day.
04 Employee Relations
70
It should be highlighted that the training leftover from 2008 was used to hold four social scholarship courses sponsored by Esval and given by the Intermediate Technical Training Body (OTIC) of the Chilean Chamber of Construction. Such courses were: plumbing and sanitary installations, laminated flooring, cake-making and pastry-making. These courses benefitted a total of 100 unemployed people or with incomes equivalent to the minimum wage.
INTEGRATED MANAGEMENT SYSTEM (SIG)
SIG ENVIRONMENT
SIG QUALITY
SIG OCCUPATIONAL SAFETY & HEALTH
UPDATE
PROFESSIONAL DEVELOPMENT
PERSONAL DEVELOPMENT
TOTAL
TRAINING AREA26 2008 2009
HOURS
1,611
33
443
3,781
8,983
1,117
15,968
%
10.09%
0.21%
2.77%
23.68%
56.26%
7.00%
100.00%
HOURS
1,467
2,156
3,706
4,298
5,645
17,272
%
8.49%
12.48%
21.46%
24.88%
32.68%
100.00%
26The training area categories were changed in late 2008, and the data was adapted to make the best possible comparison of 2008 and 2009.
71Esval Sustainabil ity Report 2009
OCCUPATIONAL HEALTH AND SAFETY
Regarding occupational health and safety, an occupational health and safety management system (SST) was implemented so the organization can control its risks and improve performance. The key objective is to eliminate or minimize risks to employees and other interested parties who might be exposed to work-related hazards.
The following are the current programs to achieve this, among others:
Implementation of OHSAS 18001
• A hazard identification matrix was made, the risks were assessed and controls set up.
• The occupational health and safety management system was compiled.
• Procedures, documents and guidelines, among others, were aligned with the ISO 14001 and 9001 standards.
• Training of plant personnel and contractors.
• Intranet implementation of the daily question form on the standard for all the personnel in the organization.
Health Action
• Pause gymnastics.
• Comprehensive health workshop on Pilates - Yoga.
• Sports and recreation for a healthy life.
04.4 • Training on breathing and hearing protection, “safe breathing” campaign. • Pre-occupational exams.
Contactors must also adhere to Esval’s safety standards, and guidelines in line with the OHSAS standards are added to service contracts. There is also ongoing training and assessment of compliance with safety standards. A company controls labor, quality and safety issues and is constantly auditing the good execution of contracts in these areas.
Exclusive Risk Prevention Training (Man-Hours)
ONTRATO
ESVAL S.A.
CONTRACTORS
TOTAL
2007
2,181
15,493
17,674
2008
3,719
19,263
22,982
2009
2,156
11,558
13,714
04 Employee Relations
72
Parity Committees
Esval has four parity committees: Southern Coastline Committee, Central Level Committee, Quillota-San Felipe/Los Andes Committee and the Valparaíso Operations Committee.
The essential actions of these committees include monthly and extraordinary meetings, and specific work schedule activities like planned inspections, remarks on behavior, investigation of incidents, studies and design of products for prevention campaigns.
The activities of the four hygiene and safety parity committees in 2009 were focused on boosting and supporting the risk prevention management in implementing the OHSAS 18001 standard.
Esval’s Lost-Time Accident and Accident Rate(2007-2009)
*Lost-time accident rate (total): average lost-time accident rate due to temporary disability + lost-time accident rate due to disability and death (pursuant to Supreme Decree 67).
**Accident rate: number of work accidents/average workers divided by 100 in 12 months.
***This is under appeal in the Superintendency of Health Services.
ONTRATO
LOST-TIME ACCIDENT RATE*
ACCIDENT RATE**
2007
26.32%
2.9%
2008
18.70%
2.4%
2009
57.00%***
2.2%
LABOR RELATIONS04.5The Company’s union relations are characterized by an environment of cooperation and respect between the parties, and periodic work meetings are held throughout the year as part of the Labor Relations Commission, which reflects the value employees hold of labor conditions at Esval.
There were two collective bargaining processes in 2009, involving three Company unions. These were completed before the legal deadlines with the signing of two collective contracts that were satisfactory for the parties. They will be effective September 1, 2009 through August 31, 2011, both dates inclusive.
Level of Unionization 2008-2009
UNION Nº1
UNION Nº2
PROFESSIONALS & DEPARTMENT HEAD UNION
UNIONIZED TOTAL
UNIONIZED %
NON-UNIONIZED
2008
132
40
39
211
58%
156
2009
125
51
38
214
59%
146
73Esval Sustainabil ity Report 2009
CONTRACTORS
Esval considers its contractor relations to be part of its ethical and transparency principles. This means providing permanent, clear, and timely information on issues like tender processes, requirements, compliance and performance evaluations.
The company’s commitment to contractors is clearly embodied in Esval’s Quality, Environment, Occupational Safety and Health Policy. Among other issues, this sets forth the need of: “Gradually committing its contractors and suppliers so their quality, environmental, occupational health and safety performance is commensurate with the guidelines of this policy in regard to the activities and services they provide to the organization.”
Esval deems contractors to be all those companies that provide services related to processes or specialized tasks that are a part of the service chain of this water utility. The Company hires these services provided they contribute to the efficiency of the operation and can be strictly measured according to quality standards.
For greater clarity, the terms of the services and requirements between the parties are
always expressly governed by a civil contract. For these effects and purposes, Esval has a contract management system, whose aim is to guarantee the good operation of this work system and safeguard compliance with labor and safety laws, among other significant aspects. The following are some elements of this system that should be highlighted:
• The contracts assistant management, which reports to the finance and administration management, lays down the regulations, and plans, organizes, executes and controls the drawing up of such contracts in ongoing coordination27 with different areas and managements.
• The tender bases have been standardized according to categories or modalities.
• There is internal contract control with the presence of the operating coordinator27, who belongs to the management receiving the service. He is in charge of establishing its quality controls and safeguarding suitable compliance with the contractual bases.
• A specialized company undertakes systematic audits of contractor compliance with labor legislation and safety regulations, which are independent of other controls Esval undertakes on these issues and regarding quality.
• The Company supports different training and updating programs for contractor companies, irrespective of the responsibility of each contractor company for training its own workers.
• To comply with Esval’s occupational health and safety standards, contractors shall adhere to the Special Regulation for Contractor and Subcontractor Companies, which commits them to being more self- demanding on these issues and to complying with current legislation.
Esval had contractual relations with 53 contractor companies in 2009, through which it generated 1,334 indirect jobs.
04.6
27Professional who acts as counterpart representing the principal.
74
05
74
COMMUNITY
Community relations are a key factor for Esval because of the vital importance and impact of the sanitary service on the quality of life of people, their health, wellbeing, and therefore on the economic development and environmental sustainability of the Valparaíso Region.
Its objective in this relationship is to forge open, fluent and harmonious relations. General management is responsible for meeting this aim, with the collaboration of the corporate management area, commercial management and operations management.
Work in 2009 was focused on disseminating the benefits of cleaning up beaches and rivers so the significance of Esval’s contribution to people’s quality of life is valued.
The key message of the annual campaign was “Taking care of water depends on you
05.1
75Esval Sustainabil ity Report 2009
Community Relations in the Region
and me,” and the aim was to awareness that taking care of the environment is the shared responsibility of the Company and community as a whole.
The main efforts were focused on school education, and in 2009 extending the healthy life concept pursued in 2008 to transmit the message of taking care of the planet.
Partnerships were also entered into with the public sector with this same objective. Esval signed a collaboration agreement in June with the National Environmental Agency (CONAMA) of the Valparaíso Region, whose aim was to drive favorable habits in preserving the natural environment by means of municipal and community activities, and health shows.
The Company also participated in various activities to promote the care of the environment, highlighting the following:
• VI CONICYT Explora School Congress of Sciences and Technologies, organized by the Pontifical Catholic University of Valparaíso jointly with the CONICYT Explora program, held in Valparaíso.
• National environmental certification system of schools in Quillota, organized by the Municipality of Quillota jointly with the CONAMA.
• First regional environmental education meeting of biodiversity experiences on diversification and climate change, organized by the Laguna Verde Corporation and sponsored by the CONAMA of the Valparaíso Region, Environmental Protection Fund, CONICYT Explora, PNUD-VE joint program to fight desertification. It was held in the city of Valparaíso.
• Seminar on methodologies for environmental education in schools, organized by the department of culture of the Municipality of San Antonio.
• Inter-school environment tournament in San Antonio, organized by the environmental department of the Municipality of San Antonio.
As in previous years, in 2009 Esval supported and participated in various recreation, health and cultural activities throughout the region.
The campaign to bolster community awareness about the importance of taking care of the environment, natural water sources and the sea is expected to continue and increase in 2010. This is understood as a shared responsibility which is why we get actively involved in it.
05 Community Relations in the Region
76
Healthy Water, Healthy Life Campaign
The “Healthy Water, Healthy Life” campaign was launched in 2002 to get Esval and its operations closer to the community and act as a bridge of assistance for the neediest. It is currently striving to transmit messages on taking care of the planet, water and its importance in life.
As reported in the 2008 report, Esval carried out various activities in 2009 as part of this campaign, including the following:
1. Playful educational presentation in schools, day-care centers and centers for the elderly.
2. Activities in centers for children whose mothers are seasonal workers.
3. Educational workshops.
4. “Door-to-door” activities.
5. Participation in public events related to the community.
6. Health programs.
77Esval Sustainabil ity Report 2009
Educational Workshops
Esval holds educational workshops, especially aimed at the social organizations in the region. “Use and importance of water for life,” “Care of hydrants,” “100% clean-up of the Valparaíso Region” and “Care of sewerage systems” were the main topics addressed in 2009.
Door-To-Door Activities
Door-to-door activities are used to inform customers and the community beforehand about the benefits and impacts of different works the Company undertakes. This personalized contact, which also includes meetings with the respective neighbors’ committees and communal associations, allows neighbors to find out about the main developments being carried in their sector, and to get answers to their queries.
In 2009, the campaign teams personally informed of situations like: scheduled drinking water cuts, sanitary network enhancement works, construction of drinking water tanks, renewal of mains, and connection to new services, among others.
Playful EducationalPresentation
By means of a short play with music and motivating elements for children, Esval made presentations in municipal, subsidized and some private schools, aimed at transmitting a message of taking care of the environment around us, the planet and water.
1
YEAR
2009
2008
2007
EDUCATION TOTAL
TOTAL CONTACTS
43,618
79,409
96,296
There was a drop in the number of contacts with schools in 2009 for two main reasons. Firstly, the Company made the decision to increase community contact by holding more educational workshops with social organizations, such as mothers’ centers, the elderly and neighbors’ committees. The second reason was due to fewer activities in municipal schools on account of a series of strikes in the year.
Esval also promoted activities to further artistic creativity in schools:
• Come to Valparaíso Competition: The Company was one of the main sponsors
of this children’s painting competition, organized by the Municipal Corporation of Valparaíso, with an invitation to all municipal schools.
• Christmas Competition: As is tradition, primary education children at schools that received the Healthy Water, Healthy Life campaign participated in a children’s painting competition organized by Esval. This time the topic of the competition was “Taking Care of the Environment with Esval’s Water Drops.” The winning paintings in the competition were used on Christmas cards that Esval sent out to greet the community.
Activities at day-care centers for children whose mothers are seasonal workers
For the fourth year running, Esval participated in centers, which the National Department for Women (SERNAM) opens every summer to look after the children of mothers who are seasonal workers, by making recreational and educational visits.
This educational work, coordinated with the directors of the community development departments of the various municipalities in the region, also helped children learn more about taking care of the environment and the relevance of water in preserving it.
2
3
4
2007
9,858
DOOR-TO-DOOR ACTIVITIES2007-2009
2008
9,960
2009
4,752
05 Community Relations in the Region
78
A new strategy was implemented in 2009 to boost communication in areas where large mains renewal work needs to be undertaken. Contact was made in such areas before, during and after the construction of works, which involved the same person being visited three times but this was only recorded as one contact, and the number of door-to-door visits therefore dropped in the period.
Public Events
Most of the campaign activities require ongoing coordination with the regional and provincial government, municipal authorities and other services, which channel efforts into the most important needs in the region. The various public activities in 2009 with Esval’s participation included:
• Support of winter schools, driven by the regional government to train social leaders.
• Collaboration with governors’ offices on the “Gobierno Más Cerca” (Closer Government) program.
• Coordination with the Regional Ministerial Secretary of Education to bolster the educational emphasis of the campaign
5
Health Programs
Another activity of the campaign was attending numerous shows, where training was given on health issues, with the education and nutrition departments of the walk-in clinics in the region. The messages transmitted were related to hygiene, healthy eating and information on the clean-up of beaches.
6
Summary of Site Activities in the Valparaíso Region2007-2009
20,170
22,005
28,101
YEAR
2009
2008
2007
OFFICES
43,618
79,409
96,296
EDUCATION AREA
112,653
94,304
68,879
COMMUNITY
176,441
195,718
193,276
TOTAL CONTACTS
The drop in site activities in 2009 is mainly explained by fewer door-to-door contacts and activities with schools, as explained above. Nevertheless, there was an increase in the number of activities with the community, which enhanced the information on customer insight, complaints and opinions.
79Esval Sustainabil ity Report 2009
PUBLIC-PRIVATE PROGRAMS TO SUPPORT REGIONAL DEVELOPMENT
As stated in the Company’s mission, the development of its business must make a contribution to the community regarding health, quality of life, conservation of the environment and regional development. Regarding this, Esval participates in and supports the implementation of numerous public projects benefiting the region’s development, as outlined below.
05.2
LEVELGOVERNMENT
BODY
REGIONAL
PROGRAM/PROJECT
TYPE OF SUPPORT/ESVAL’S PARTICIPATION
“HIGH-RISK SECTORS” GOVERNMENT
PROGRAM
CLOSER GOVERNMENT PROGRAM: ITS OBJECTIVE
WAS TO INFORM, DISSEMINATE AND
COMMUNICATE THE REGIONAL GOVERNMENT’S
PUBLIC OFFERINGTO THE COMMUNITY,
INCLUDING PROJECTS AND PROGRAMS OF PUBLIC SERVICES AT REGIONAL
LEVEL
CLEAN HANDS CAMPAIGN: THE OBJECTIVE WAS TO PREVENT AN OUTBREAK
OF INFECTO-CONTAGIOUS DISEASES
ENVIRONMENTAL ACTIVITIES
“TAKING CARE OF WATER DEPENDS ON YOU AND
ME” CAMPAIGN
WORKING ROUNDTABLES (COMPRISING ESVAL, THE TERRITORIAL DELEGATES OF THE MUNICIPALITIES
AND COMMUNITY REPRESENTATIVES)
MUNICIPAL
TECHNICAL SUPPORT
PARTICIPATION IN VARIOUS ACTIVITIES
SUPPORT THROUGH THE HEALTHY WATER, HEALTHY LIFE TEAM AND
CAMPAIGN
SUPPORT OF THE VARIOUS ACTIVITIES UNDERTAKEN
COLLABORATION AGREEMENT TO DRIVE GOOD HABITS ON
PRESERVING THE NATURAL ENVIRONMENT
FOCUS ON EXCHANGING IDEAS AND EXPERIENCES TO IMPROVE COMMUNICATION AND MAKE
PROGRESS WITH RESOLVING THE CONCERNS AND/OR PROBLEMS OF
COMMUNITY REPRESENTATIVES (MAINLY COMMUNAL
ASSOCIATION LEADERS)
INTENDENCY
GOVERNOR’S OFFICE
REGIONAL MINISTERIALSECRETARY OF HEALTH
NATIONAL ENVIRONMENTAL
AGENCY, VALPARAÍSO REGION
TERRITORIAL DELEGATES OF THE
MUNICIPALITIES
REGIONAL MINISTERIAL SECRETARY OF EDUCATION
80
All the managements are accountable for meeting Esval’s economic performance objectives. The finance and administration management is in charge of appraising the degree of compliance of each area and giving them periodical information about their work.
Esval’s net earnings amounted to CLP83.256 billion in 2009, 4.7% up on earnings of CLP79.358 billion in 2008. Net income was CLP22.477 billion, 11.8% up on the CLP19.819 billion of the previous year.
Income was driven by a 3.9% increase in operating income from CLP27.921 billion in 2008 to CLP29.054 billion in 2009, largely due to increased operating earnings on account of a higher average tariff compared with 2008. A further contributing factor was the 65.9% drop in income tax from an expense of CLP4.480 billion in 2008 to CLP$2.701 billion in 2009, due to lower deferred tax.
06
81Esval Sustainabil ity Report 2009
INVESTMENTS (EXPRESSED IN MILLIONS OF CHILEAN PESOS)
DRINKING WATER PRODUCTION & DISTRIBUTION
WASTEWATER COLLECTION
WASTEWATER TREATMENT
OTHER INVESTMENTS
TOTAL INVESTMENTS
2009 Investments
In 2009, Esval continued to expand the drinking water supply and also to maintain assets and renew networks.
Esval’s total investment amounted to CLP16.454 billion in 2009.
2009
9,866
3,152
1,337
2,099
16,454
2008
13,269
3,324
774
3,181
20,548
2007
16,138
2,201
1,334
2,556
22,229
Contribution to Regional Economic Development
82
06
PROJECTS
Conveyance of Drinking Water to the Northern Coastline
Due to the need of continuing to support the development and growth of the Valparaíso Region, in 2009 new communities on the northern coastline benefited from the investment made 2003 through 2008 with the conveyance of drinking water from the production plant on the Aconcagua river, district of Concón, to the district of Zapallar.
The La Laguna-Cachagua conveyance stretch was built in 2009, which boosted the water supply to the towns of Cachagua and Zapallar, adding the real estate subdivisions and projects present in the sector. ThCLP$1,226,984 was invested in these works with the installation of 5,186 meters of piping.
Likewise, a 200-cubic meter semi-buried tank was built in the city of Puchuncaví and 6,296 meters of piping at an investment of
ThCLP$556,241 to provide the community with a top class service.
Moreover, the towns of Horcón and Chocota solved their water supply quality and regularity problems due to interconnection to these works.
Tank on the La Isla Housing Estate in Valparaíso
Regarding this, a 300-cubic meter semi-buried tank was built to resolve the water supply problems of the La Isla housing estate in Valparaíso. These works have already been completed and the project had a cost of ThCLP$238,026, which included a 732-meter adduction, the design, construction, inspection and others. It will benefit 3,500 people.
Network Renewal
Once the large works had been completed, the Company renewed networks. In accordance with the development plan
committed with the authorities, work was done in virtually all the districts of the concession area in 2009, at an investment of ThCLP$5,307,784, to modernize 50,000 meters of network. Moreover, the construction of 12,000 meters was brought forward, at an investment of ThCLP1,581,560.
40,000 meters were renewed in the districts of Greater Valparaíso, where almost 70% of the population lives. 7,400 meters were renewed in the province of Quillota, 9,600 meters in the provinces of San Felipe and Los Andes, and 5,000 meters in the province of San Antonio.
Treatment Plant Construction and Expansion
The Company is ready to assume the increase in demand for its different services and as such in September started to expand the wastewater treatment plant in Cachagua. CLP792 million have been invested in this project to undertake the civil works, provide equipment, hydraulic interconnection and sheds.
Contribution to Regional Economic Development
83Esval Sustainabil ity Report 2009
ECONOMIC VALUE GENERATION
The economic value generated by Esval in 2009 amounted to CLP87.350 billion and the economic value distributed was CLP88.665 billion, which was a CLP1.315 billion drop in economic value generation, mainly due to higher operating costs.
This was a 66.5% improvement on the -CLP3.923 billion in 2008. This was mainly explained by a lower return to shareholders on account of lower net income in 2008 (the final dividend was decided in 2009).
Regarding the economic value distributed, it can be seen that the Company’s operations generated value for its goods and services suppliers, its contractors, employees, shareholders, financial creditors, the community and treasury.
06.1
84
06
Economic Value Generated & Distributed 2007-200928
2009
87,350.419
45,899,226
11,149,645
19,561,456
15,188,125
7,557,204
33,553,240
20,153,306
13,399,934
1,443,592
211,844
-1,314,687
2008
83,636,694
43,488,008
10,921,062
18,171,830
14,395,115
7,277,752
35,978,987
23,192,046
12,786,942
660,421
154,035
-3,922,509
ECONOMIC VALUE GENERATED (1)
EARNINGS (2)
OPERATING COSTS
PURCHASE OF GOODS
PAYMENT OF SERVICES HIRED
OTHER OPERATING COSTS
EMPLOYEE SALARIES
PAYMENT TO CAPITAL SUPPLIERS
DIVIDENDS
DEBT INTEREST
PAYMENTS TO THE TREASURY (3)
INVESTMENT IN THE COMMUNITY (4)
ECONOMIC VALUE WITHHELD
LESS ECONOMIC VALUE DISTRIBUTED
2007
84,316,472
39,434,143
7,524,101
17,429,338
14,480,705
7,232,246
30,021,410
17,281,278
12,740,132
1,292,866
110,971
6,224,836
Contribution to Regional Economic Development
(1) Drawn up on an accrued basis.(2) Include operating earnings, financial income and other non-operating earnings.(3) Include 1st category income tax, tax on rejected expenses, commercial licenses, land tax, stamp duties and others. Exclude deferred taxes(4) Include donations and the Healthy Water campaign expenses, stated in the item Corporate Image.
28All the values are stated in millions of Chilean pesos as of December 2009, and the economic value generated figures were drawn up according to generally accepted accounting principles.
85Esval Sustainabil ity Report 2009
Economic Value Distributed 2007-2009
Economic Value Withheld
Community Investment
Operating Costs
Employee Salaries
Dividends
Debt Interest
Payments to the Treasury
2007 2008 2009
110%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
-10%
7.4%
8.6%
15.1%
0.1%
20.5%
1.5%
46.8%
-4.7%
8.7%
15.3%
0.2%
27.7%
0.8%
52.0%
-1.5%
8.7%
15.3%
0.2%
23.1%
1.7%
52.5%A REGULATED BUSINESS
Chilean legislation lays down that water utilities “that act in a natural monopoly” shall be subject to the supervision and regulation of the Superintendency of Sanitary Services (SISS). This is a functionally decentralized legal entity with its own equity, which is subject to the supervision of the President of the Republic through the Ministry of Public Works. Its function is to guarantee that these services are provided to the population in the quantity, quality and at the price offered, with continuity in the long term. It must also verify that wastewater is treated and disposed of in keeping with sustainable development.
Esval and other water utilities are also subject to the provisions of various laws and regulations, and the main ones are as follows:
06.2
06 Contribution to Regional Economic Development
86
Tariff system in the water utility sector
The most economical solution a community can have for the provision of its sanitary service is for this to be provided exclusively by one company, as it would not be efficient for there to be piping networks of various companies installed in the streets, as is the case for other public services like telephony. Hence, an efficient sanitary service for a community is a monopolistic service.
To ensure that water utilities, due to their monopolistic nature, do not establish their prices unilaterally and thereby avoid undue tariffs and charges to customers, the State has laid down a series of laws and regulations defining how such tariffs should be calculated and established, and core legislation is the Law on Sanitary Service Tariffs (Statutory Decree Nº70, Ministry of Public Works of 1998) and its Regulation (Supreme Decree Nº453, Ministry of Economy of 1990).
Pursuant to these laws, tariffs are calculated every five years by means of a process undertaken by the SISS and in which the water utility participates. These tariffs are calculated based on a “model” water utility,
DECREE/LAW
D.F.L.29 MOP30 Nº382
D.S31 MOP Nº1199
D.F.L. MOP Nº70
D.S. MOP Nº214
D.S. MINECON32 Nº453
D.S. MINECON Nº385
D.S. MOP Nº1305
Law Nº18.902
Law Nº19.821
Law Nº18.778
D.S. Nº195 Treasury
D.S. MOP Nº50
DOCUMENT
General Sanitary Services Law (updated at July 2005)
Regulation of the General Sanitary Services Law
Law on Sanitary Service Tariffs
Regulation of article 67 of D.F.L. MOP Nº382/88
Regulation of the Law on Sanitary Service Tariffs
Regulation on the Designation and Operation of Expert Commissions
Regulation on Share Expropriation
Law Establishing the Superintendency of Sanitary Services
Modifies Law Nº18.902 and repeals Law Nº3.133
Subsidy Law on the payment of drinking water con-sumption and sewerage services
Regulation of the Subsidy Law
RIDAA – Approves the Regulation on Domestic Drinking Water and Sewers
ENACTMENT
DATE
1988
2004
1988
2005
1989
2000
2001
1989
2002
1989
1998
2002
29Statutory Decree30Ministry of Public Works31Supreme Decree32Ministry of Economy
87Esval Sustainabil ity Report 2009
which provides sanitary services according to the real conditions of the locality but whose infrastructure is designed optimally. The optimal operating and maintenance expenses based on this infrastructure model are also considered. It similarly considers the other expenses of this model company, like the commercial and administrative costs needed for its operation.
This means that any possible inefficiency of the real company is eliminated so that the costs and expenses included in a tariff are only the minimal and efficiently necessary to provide the service and not transfer higher costs to customers due to the inefficiencies of the real company.
In accordance with law, the tariff process starts one year before the tariff term expires. The process commences when the SISS publishes the preliminary bases of the study, which set forth the methodologies, criteria and standards for calculating tariffs. It also defines the information it will require from the company to make its calculations. After a process of the water utility reviewing and making remarks about the preliminary bases, the SISS publishes the final bases and one month later the water utility must provide all the data for tariff calculation. With this information, the SISS makes its tariff
calculation. At the same time, the water utility makes its own tariff calculation study. Five months before the end of the tariff period, the SISS and water utility exchange their studies. If the water utility does not agree with the results of the SISS study, it can raise discrepancies of each point it disagrees with in a detailed and accurate way. The SISS shall have a legal 15-day term to review the discrepancies with the water utility and reach a tariff agreement. If this occurs, this leads to the end of the process and the publication of the new tariffs.
Should no agreement be reached, the discrepancies shall be resolved by a commission of three experts, with one designated by the SISS, another by the water utility and a third party, designated by the SISS based on a list agreed on beforehand with the water utility. The verdicts of this commission shall determine the final tariffs and there shall be no appeal.
Lastly, the final tariffs are published in the Official Gazette by means of a Decree of the Ministry of Economy, Production and Tourism, containing the following tariff charges: variable charges for drinking water consumed, variables charges for wastewater collected and treated, and the standing charge per customer. It also establishes a
series of “other charges” related to providing the sanitary service, including the following: service suspension and reconnection charge for not paying the bill, meter verification charge, hydrant maintenance charge, charge for the direct control of liquid industrial waste, and a project review charge.
The tariff decree also includes the formulae for updating the tariffs according to the Consumer Price Index (CPI) variation and two other price indexes to compensate for the higher costs of the water utility in providing the service.
The tariff review processes were completed for 23 concessionaires in 2009, including Esval. The agreement reached led to maintaining the tariffs for the 2010-2015 period in the Valparaíso Region.
07
88
89Esval Sustainabil ity Report 2009
2009 Commitments and 2010 Challenges
AREA 2009 TARGET
WASTEWATER DISCHARGES INTO
WATER BODIES DUE TO FAULTS OF WASTEWATER
TREATMENT PLANTS (PDAS) AND PUMPING
STATIONS (EEAS)
2009 PERFORMANCE 2010 TARGET
ENVIRONMENT
NO WASTEWATER DISCHARGES INTO WATER BODIES.
TARGET ATTAINEDNO WASTEWATER DISCHARGES INTO WATER BODIES.
ENERGY SAVING IN ADMINISTRATIVE
AND COMMERCIAL BUILDINGS
REDUCE ENERGY CONSUMPTION (KW) IN THE COMPANY’S ADMINISTRATIVE AND COMMERCIAL BUILDINGS BY 5%.
TARGET NOT ATTAINED
ENERGY CONSUMPTION WAS REDUCED BY 3%.
THE RESULT WAS BECAUSE IT WAS IMPOSSIBLE TO CARRY OUT ALL THE PLANNED ACTIVITIES.
REDUCE ENERGY CONSUMPTION (KW) IN THE COMPANY’S ADMINISTRATIVE AND COMMERCIAL BUILDINGS BY 5%.
HANDLING OF HAZARDOUS WASTE
SECURE SANITARY AUTHORIZATION FOR 8 FLUORIDE CONTAINER STORAGE PLANTS.
TARGET PARTIALLY ATTAINED AUTHORIZATION OF 5 FLUORIDE CONTAINER STORAGE PLANTS WAS SECURED.
SECURE SANITARY AUTHORIZATION FOR THE 3 REMAINING FLUORIDE CONTAINER STORAGE PLANTS.
07 2009 Commitments and 2010 Challenges
90
DRINKING WATER AND SEWERAGE
SERVICE COVERAGE FOR NEW CUSTOMERS INCORPORATED DUE
TO THE INSTALLATION OF ESSENTIAL PUBLIC
SERVICES AND SERVICE CONNECTIONS TO THE
NETWORK.
CUSTOMERS (PRODUCTS & SERVICES)
DRIVE
25 DRINKING WATER PRELIMINARY PROJECTS AND PROJECTS.
26 PRELIMINARY SEWAGE PROJECTS WHICH RESPECTIVELY ENABLE 563 AND 550 POTENTIAL CUSTOMERS NOT CONNECTED TO SUCH NETWORKS TO BE ADDED.
TARGET ATTAINED
COVERAGE OF DRINKING WATER
18 DRINKING WATER PRELIMINARY PROJECTS AND PROJECTS WERE DRIVEN, WHICH ADDED 287 POTENTIAL CUSTOMERS.
COVERAGE OF SEWERAGE SERVICE
27 PRELIMINARY SEWAGE SERVICE PROJECTS WERE DRIVEN, WHICH ADDED 724 POTENTIAL CUSTOMERS.
*THE EXECUTION OF THESE PROJECTS REQUIRES EXTERNAL FINANCING THAT DOES NOT DEPEND ON ESVAL S.A.
ADD 500 NEW CUSTOMERS TO THE SEWERAGE SYSTEM BY DEVELOPING THE MASS CUSTOMER INCORPORATION PROGRAM.
UNDERTAKE 15 CONCEPTUAL STUDIES RELATED TO HIGH-RISK SECTORS.
UNDERTAKE 6 CONCEPTUAL STUDIES RELATED TO SEIZED SECTORS.
CUSTOMER SERVICE REQUIREMENTS
REGARDING NOISE AND ODORS AT
ESVAL’S FACILITIES
RECORD A MAXIMUM OF 20 CUSTOMER SERVICE REQUIREMENTS FOR NOISE AND 45 FOR ODORS.
UNDERTAKE 9 NOISE MITIGATION WORKS AT FACILITIES BY SOUNDPROOFING THEM.
TARGET ATTAINED
THERE WERE 17 SERVICE REQUIREMENTS FOR NOISE AND 24 FOR ODORS.
8 NOISE MITIGATION WORKS WERE CARRIED OUT.
RECORD A MAXIMUM OF 20 CUSTOMER COMPLAINTS FOR NOISE.
RECORD A MAXIMUM OF 40 CUSTOMER COMPLAINTS FOR ODORS.
UNDERTAKE THE NOISE MITIGATION WORKS AT THE LOS MAITENES WASTEWATER TREATMENT PLANT.
AREA 2009 TARGET 2009 PERFORMANCE 2010 TARGET
91Esval Sustainabil ity Report 2009
DISSEMINATION ACTIVITIES OF
THE INTEGRATED MANAGEMENT
SYSTEM ON QUALITY, THE ENVIRONMENT,
OCCUPATIONAL HEALTH AND SAFETY (SIG) FOR CONTRACTORS AND
SUPPLIERS.
SUPPLIERS AND CONTRACTORS
DRIVE ALL CONTRACTOR COMPANIES TO COMMIT TO THE SIG GUIDELINES BY MEANS OF ITS DISSEMINATION DEPLOYING THE ELEMENTS USED IN 2008 AND OTHERS, SUCH AS ACCESS TO ITS DOCUMENTAL MANAGEMENT SYSTEM.
TARGET ATTAINED
THE FOLLOWING ACTIVITIES WERE CARRIED OUT:
A CLAUSE WAS ADDED TO ALL WORKS, SERVICE AND CONSULTANT CONTRACTS, LAYING DOWN THAT THE CONTRACTOR SHALL TRAIN ITS WORKERS ON SIG ISSUES.
COMPLIANCE WITH TRAINING ON RISK PREVENTION AND SIG-RELATED ASPECTS WAS REVIEWED.
PROVIDE INDUCTION TO ALL NEW CONTRACTOR COMPANY PERSONNEL ON THE CORE ASPECTS OF THE SIG.
AREA 2009 TARGET 2009 PERFORMANCE 2010 TARGET
08
92
STATEMENT FROM THE CEO OR MOST SENIOR DECISION MAKER OF THE ORGANIZATION.
DESCRIPTION OF KEY IMPACTS, RISKS AND OPPORTUNITIES.
NUMBER INDICATOR
GRI-G3 INDICATORS
Profile
PAGE
9-11
9-11
1.1
1.2
1. STRATEGY & ANALYSIS
NAME OF THE ORGANIZATION.
PRIMARY BRANDS, PRODUCTS AND/OR SERVICES.
OPERATIONAL STRUCTURE, INCLUDING MAIN DIVISIONS, OPERATING COMPANIES, SUBSIDIA-RIES AND JOINT VENTURES.
LOCATION OF ORGANIZATION’S HEADQUARTERS.
NUMBER OF COUNTRIES IN WHICH THE ORGANIZATION OPERATES.
NATURE OF OWNERSHIP AND LEGAL FORM.
MARKETS SERVED.
SCALE OF THE REPORTING ORGANIZATION.
SIGNIFICANT CHANGES DURING THE REPORTING PERIOD.
AWARDS RECEIVED IN THE REPORTING PERIOD.
12
12-22
12-22
12
16 ESVAL ONLY HAS OPERATIONS IN CHILE
COVER & 29
17-19
16
2
33
2. ORGANIZATIONAL PROFILE
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
93Esval Sustainabil ity Report 2009
Global Reporting Initiative (GRI) Index
REPORTING PERIOD FOR INFORMATION PROVIDED.
DATE OF MOST RECENT PREVIOUS REPORT.
REPORTING CYCLE.
CONTACT POINT FOR QUESTIONS RELATED TO THE REPORT OR ITS CONTENT.
2
2
ANNUALLY
5
3.1
3.2
3.3
3.4
3. REPORT PARAMETERS
REPORT PROFILE
PROCESS FOR DEFINING REPORT CONTENT.
BOUNDARY OF THE REPORT.
STATE SPECIFIC LIMITATIONS ON THE SCOPE OR BOUNDARY OF THE REPORT.
BASIS FOR REPORTING ON JOINT VENTURES, SUBSIDIARIES, LEASED FACILITIES, OUTSOURCED OPERATIONS AND OTHER ENTITIES.
DATA MEASUREMENT TECHNIQUES AND THE BASES FOR CALCULATIONS.
EXPLANATION OF THE EFFECT OF ANY RE-STATEMENTS OF INFORMATION PROVIDED IN EARLIER REPORTS.
SIGNIFICANT CHANGES FROM PREVIOUS REPORTING PERIODS IN THE SCOPE.
TABLE IDENTIFYING THE LOCATION OF THE STANDARD DISCLOSURES IN THE REPORT.
VERIFICATION
3-5
2
NOT APPLICABLE
NOT APPLICABLE
2-5
THERE WAS NO RESTATEMENT OF INFORMATION PROVIDED IN
EARLIER REPORTS
2
93-102
103
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
REPORT SCOPE AND BOUNDARY
NUMBER INDICATOR PAGE
08 Global Reporting Initiative (GRI) Index
94
GOVERNANCE STRUCTURE OF THE ORGANIZATION.
FUNCTION OF THE HIGHEST EXECUTIVE OFFICER.
STATE THE NUMBER OF MEMBERS OF THE HIGHEST GOVERNANCE BODY THAT ARE INDEPENDENT AND/OR NON-EXECUTIVE MEMBERS.
MECHANISMS FOR SHAREHOLDERS AND EMPLOYEES TO PROVIDE RECOMMENDATIONS OR DIRECTION TO THE HIGHEST GOVERNANCE BODY.
LINKAGE BETWEEN PAYMENT FOR MEMBERS OF THE HIGHEST GOVERNANCE BODY, SENIOR MANAGERS, EXECUTIVES, AND THE ORGANIZATION’S PERFORMANCE.
PROCESSES IN PLACE FOR THE HIGHEST GOVERNANCE BODY TO ENSURE CONFLICTS OF INTERESTS ARE AVOIDED.
PROCESSES FOR DETERMINING THE QUALIFICATIONS AND EXPERTISE OF THE MEMBERS OF THE HIGHEST GOVERNANCE BODY.
STATEMENT OF MISSION, VISION AND VALUES.
PROCEDURES OF THE HIGHEST GOVERNANCE BODY FOR OVERSEEING THE ORGANIZATION’S IDENTIFICATION AND MANAGEMENT OF ECONOMIC, SOCIAL AND ENVIRONMENTAL PERFORMANCE.
PROCESSES FOR EVALUATING THE HIGHEST GOVERNANCE BODY’S OWN PERFORMANCE.
25-30
25
25-26
ESVAL DOES NOT CURRENTLY HAVE THIS KIND OF MECHANISM.
ESVAL DOES NOT HAVE THESE KINDS OF AGREEMENTS.
ESVAL DOES NOT CURRENTLY HAVE THESE KINDS OF PROCESSES.
ESVAL DOES NOT HAVE THESE KINDS OF PROCESSES TO DATE.
23
26
ESVAL DOES NOT HAVE THESE KINDS OF PROCESSES TO DATE.
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4. GOVERNANCE, COMMITMENTS & STAKEHOLDER ENGAGEMENT
GOVERNANCE, COMMITMENTS & STAKEHOLDER ENGAGEMENT
NUMBER INDICATOR PAGE
95Esval Sustainabil ity Report 2009
EXPLANATION OF HOW THE PRECAUTIONARY APPROACH OR PRINCIPLE IS ADDRESSED BY THE ORGANIZATION.
EXTERNALLY DEVELOPED ECONOMIC, ENVIRONMENTAL AND SOCIAL CHARTERS TO WHICH THE ORGANIZATION SUBSCRIBES.
MEMBERSHIPS IN ASSOCIATIONS.
ESVAL’S QUALITY, ENVIRONMENTAL, POLICY INCLUDES THE POLLUTION PREVENTION PRINCIPLE, WHICH CONCERNS ANTICIPATING AND AVOIDING EVENTS THAT CERTAINLY
MIGHT CAUSE POLLUTION.
57-59, 79
32-33
4.11
4.12
4.13
COMMITMENTS TO EXTERNAL INITIATIVES
LIST OF STAKEHOLDER GROUPS ENGAGED BY THE ORGANIZATION.
BASIS FOR IDENTIFICATION AND SELECTION OF STAKEHOLDERS WITH WHOM TO ENGAGE.
APPROACHES TO STAKEHOLDER ENGAGEMENT, INCLUDING FREQUENCY OF ENGAGEMENT BY TYPE AND BY STAKEHOLDER GROUP.
KEY TOPICS AND CONCERNS THAT HAVE BEEN RAISED THROUGH STAKEHOLDER ENGAGEMENT.
4-5
24
24
4-5
4.14
4.15
4.16
4.17
STAKEHOLDER ENGAGEMENT
NUMBER INDICATOR PAGE
08 Global Reporting Initiative (GRI) Index
96
MANAGEMENT APPROACH.
Environmental Area
34-36DMA
MATERIALS USED OTHER THAN WATER BY WEIGHT OR VOLUME.
PERCENTAGE OF MATERIALS USED THAT ARE WASTE FROM OTHER INDUSTRIES (VALUED).
45
ESVAL DOES NOT USE RAW MATERIALS THAT ARE WASTE FROM OTHER PROCESSES OR INDUSTRIES.
EN1
EN2
MATERIALS
DIRECT ENERGY CONSUMPTION BY PRIMARY ENERGY SOURCE.
INDIRECT ENERGY CONSUMPTION BY PRIMARY ENERGY SOURCE.
ENERGY SAVED DUE TO CONSERVATION AND EFFICIENCY IMPROVEMENTS
46
46
47
EN3
EN4
EN5
ENERGY
TOTAL WATER WITHDRAWAL BY SOURCE.
WATER SOURCES AND HABITATS SIGNIFICANTLY AFFECTED BY WITHDRAWAL OF WATER.
PERCENTAGE AND TOTAL VOLUME OF WATER RECYCLED AND REUSED.
37
38
39
EN8
EN9*
EN10*
WATER
DESCRIPTION OF LANDS ADJACENT TO, OR LOCATED IN NATURAL PROTECTED AREAS OR AREAS OF HIGH BIODIVERSITY OUTSIDE PROTECTED AREAS.
DESCRIPTION OF THE MOST SIGNIFICANT IMPACTS ON PROTECTED AREAS OR THOSE OF HIGH UNPROTECTED BIODIVERSITY.
38-39
38-39
EN11
EN12
BIODIVERSITY
*Additional indicator
NUMBER INDICATOR PAGE
97Esval Sustainabil ity Report 2009
TOTAL, DIRECT AND INDIRECT GREENHOUSE GAS EMISSIONS.
OTHER GREENHOUSE GAS EMISSIONS.
NITRATE OXIDES (NOX), SULFUR OXIDES (SOX), AND OTHER SIGNIFICANT AIRBORNE EMISSIONS BY WEIGHT.
TOTAL WASTEWATER DISCHARGE BY QUALITY AND DESTINATION. TOTAL WEIGHT OF WASTE BY TYPE AND DISPOSAL METHOD. TOTAL NUMBER AND VOLUME OF SIGNIFICANT ACCIDENTAL SPILLS.
40
40
40
42-43
41-42
43
EN16
EN17
EN20
EN21
EN22
EN23
EMISSIONS, DISCHARGES & WASTE
PERCENTAGE OF PRODUCTS SOLD AND THEIR PACKAGING MATERIALS THAT ARE RECLAIMED BY CATEGORY.
39EN27
PRODUCTS & SERVICES
INCIDENTS AND NON-MONETARY VALUE OF FINES OR PENALTIES FOR NON-COMPLIANCE WITH ENVIRONMENTAL REGULATIONS.
DURING THE REPORTING PERIOD THERE WERE NO NON-MONETARY FINES OR PENALTIES FOR NON-COMPLIANCE
WITH ENVIRONMENTAL REGULATIONS.
EN28
REGULATION COMPLIANCE
TOTAL ENVIRONMENTAL PROTECTION EXPENDITURES AND INVESTMENTS BY TYPE. 36EN30
GENERAL
NUMBER INDICATOR PAGE
08 Global Reporting Initiative (GRI) Index
98
TOTAL WORKFORCE.
TOTAL NUMBER AND RATE OF EMPLOYEE TURNOVER.
SOCIAL BENEFITS PROVIDED TO FULL-TIME EMPLOYEES.
66
66
68
LA1
LA2
LA3*
EMPLOYMENT
Social Area
PERCENTAGE OF UNION-REPRESENTED EMPLOYEES.
MINIMUM NOTICE PERIOD RELATED TO OPERATIONAL CHANGES.
72
30 DAYS’ NOTICE
LA4
LA5
COMPANY/EMPLOYEE RELATIONSHIP
PERCENTAGE OF TOTAL WORKERS REPRESENTED IN JOINT MANAGEMENT-WORKER HEALTH AND SAFETY COMMITTEES.
RATES OF ABSENTEEISM, WORK ACCIDENTS AND INJURIES, DAYS LOST AND NUMBER OF WORK-RELATED FATALITIES.
EDUCATION PROGRAMS IN PLACE FOR HIV OR OTHER SERIOUS CONTAGIOUS DISEASES.
HEALTH AND SAFETY ISSUES COVERED BY FORMAL AGREEMENTS WITH UNIONS.
72
72
PROGRAMS TO PREVENT THE HANTA VIRUS, HIV AND OTHERCONTAGIOUS DISEASES, EVERY 2 YEARS.
72
WORKPLACE HEALTH & SAFETY
LA6*
LA7
LA8
LA9*
AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE.
PROGRAMS FOR SKILLS MANAGEMENT AND LIFELONG LEARNING THAT SUPPORT THE CONTINUED EMPLOYABILITY OF EMPLOYEES, AND ASSIST THEM IN MANAGING CAREER ENDINGS.
PERCENTAGE OF EMPLOYEES RECEIVING REGULAR PERFORMANCE AND CAREER DEVELOPMENT REVIEWS.
69-70
69-70
ALL ESVAL’S EMPLOYEES RECEIVE PERFORMANCE REVIEWS.
TRAINING & EDUCATION
LA10
LA11*
LA12*
MANAGEMENT APPROACH. 64-65
Labor practices & work ethics
DMA
*Additional indicator
NUMBER INDICATOR PAGE
99Esval Sustainabil ity Report 2009
Human Rights
PERCENTAGE OF SIGNIFICANT INVESTMENT AGREEMENTS THAT INCLUDE HUMAN RIGHTS CLAUSES.
PERCENTAGE OF SIGNIFICANT SUPPLIERS AND CONTRACTORS THAT HAVE UNDERGONE SCREENING ON HUMAN RIGHTS.
IMMATERIAL
IMMATERIAL
HR1
HR2
INVESTMENT & PROCUREMENT PRACTICES
TOTAL DE INCIDENTES DE DISCRIMINACIÓN Y ACCIONES TOMADAS. DURANTE EL AñO 2009 ESVAL NO REGISTRÓ NINGúN INCIDENTE.
HR1
NON-DISCRIMINATION
TOTAL NUMBER OF INCIDENTS OF DISCRIMINATION AND ACTION TAKEN. ESVAL HAD NO INCIDENTS IN 2009HR4
OPERATIONS IDENTIFIED IN WHICH THE RIGHT TO EXERCISE FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING MAY BE AT SIGNIFICANT RISK, AND ACTIONS TAKEN TO SUPPORT THESE RIGHTS.
ESVAL HAD NO INCIDENTS IN 2009HR5
FREEDOM OF ASSOCIATION & COLLECTIVE BARGAINING
OPERATIONS IDENTIFIED AS HAVING SIGNIFICANT RISK FOR INCIDENTS OF CHILD LABOR AND MEASURES TAKEN TO CONTRIBUTE TO THE ELIMINATION OF CHILD LABOR.
THE COMPANY HAS NO EMPLOYEES THAT BREACH WHAT IS LAID DOWN IN THE LEGAL LABOR REGULATIONS OF THE
LABOR CODE, I.E., CHAPTER 11, ARTICLES 13-18
HR6
RISKS OR INCIDENTS OF FORCED LABOR AND MEASURES TAKEN TO HELP ELIMINATE THEM. THE LAW IN FORCE IN CHILE LAYS DOWN AND IS ABOVE THE WORLDWIDE AVERAGE ON HUMAN RIGHTS CLAUSES. ESVAL COMPLIES WITH LABOR AND CIVIL LAWS. THERE WERE NO INCIDENTS OF FORCED LABOR IN THE REPORTING PERIOD.
HR7
CHILD LABOR
FORCED LABOR
NUMBER INDICATOR PAGE
08 Global Reporting Initiative (GRI) Index
100
Product Responsibility
DMA
PR1
PR2*
MANAGEMENT APPROACH 48-49
LIFECYCLE STAGES IN WHICH HEALTH AND SAFETY IMPACTS OF PRODUCTS AND SERVICES ON CUSTOMERS ARE ASSESSED, AND THE PERCENTAGE OF SIGNIFICANT PRODUCTS AND SERVICE CATEGORIES SUBJECT TO SUCH PROCEDURES.
TOTAL NUMBER OF INCIDENTS OF NON-COMPLIANCE WITH REGULATIONS AND VOLUNTARY CODES CONCERNING HEALTH AND SAFETY IMPACTS OF PRODUCTS AND SERVICES.
CUSTOMER HEALTH & SAFETY
60-62
ESVAL HAD NO INCIDENTS DUE TO HEALTH AND SAFETY IMPACTS ON THE CUSTOMER IN 2009
TYPE OF PRODUCT AND SERVICE INFORMATION REQUIRED BY PROCEDURES AND PERCENTAGE OF SIGNIFICANT PRODUCTS AND SERVICES SUBJECT TO SUCH INFORMATION REQUIREMENTS. TOTAL NUMBER OF INCIDENTS OF NON-COMPLIANCE WITH REGULATIONS AND VOLUNTARY CODES CONCERNING PRODUCT AND SERVICE INFORMATION AND LABELING, BY TYPE OF OUTCOMES. PRACTICES RELATED TO CUSTOMER SATISFACTION, INCLUDING RESULTS OF SURVEYS MEASURING CUSTOMER SATISFACTION.
PRODUCT LABELING & SERVICES
ESVAL COMPLIES WITH THE LEGAL INFORMATION REQUIREMENTS AND REGULATIONS OF ITS SERVICES BY
MEANS OF ITS BILLS AND INVOICES.
THE COMPANY HAD NO INCIDENTS OF NON-COMPLIANCE WITH THE REGULATIONS AND VOLUNTARY CODES
CONCERNING PRODUCT AND SERVICE INFORMATION.
50-54
PR3
PR4*
PR5*
PROGRAMS FOR ADHERENCE TO LAWS, STANDARDS, AND VOLUNTARY CODES RELATED TO MARKETING COMMUNICATIONS, INCLUDING ADVERTISING, PROMOTION, AND SPONSORSHIP.
TOTAL NUMBER OF SUBSTANTIATED COMPLAINTS REGARDING BREACHES OF CUSTOMER PRIVACY AND LOSSES OF CUSTOMER DATA.
MARKETING COMMUNICATIONS
IN REGARD TO ETHICAL STANDARDS AND REGULATIONS ON ADVERTISING, COMMUNICATIONS AND OTHER PROMOTION
OR SPONSORSHIP, ESVAL ADHERES TO THE CODE OF CONDUCT OF THE CHILEAN ASSOCIATION OF ADVERTISING
AGENCIES (ACHAP).
ESVAL HAD NO LEGAL PENALTIES, FINES OR REPRIMANDS BY ANY STAKEHOLDER FOR BREACH OF REGULATIONS ON
COMMUNICATIONS, ADVERTISING AND MARKETING.
PR6
PR8*
*Additional indicator
NUMBER INDICATOR PAGE
101Esval Sustainabil ity Report 2009
MONETARY VALUE OF SIGNIFICANT FINES FOR NON-COMPLIANCE WITH LAWS AND REGULATIONS CONCERNING THE ORGANIZATION’S PROVISION AND USE OF PRODUCTS AND SERVICES.
ESVAL HAD NO FINES FOR NON-COMPLIANCE WITH THE REGULATION ON THE PROVISION AND USE OF PRODUCTS
AND SERVICES. SIGNIFICANT FINES ARE UNDERSTOOD TO BE THOSE OVER CLP20 MILLION.
PR9
REGULATION COMPLIANCE
Society
DMA
SO1
MANAGEMENT FOCUS 74-75
COMMUNITY
NATURE, SCOPE, AND EFFECTIVENESS OF ANY PROGRAMS AND PRACTICES THAT ASSESS AND MANAGE THE IMPACTS OF OPERATIONS ON COMMUNITIES, INCLUDING ENTERING, OPERATING, AND EXITING.
74-79
CORRUPTION
PORCENTAJE Y NúMERO TOTAL DE UNIDADES DE NEGOCIO ANALIZADAS CON RESPECTO A RIESGOS RELACIONADOS CON LA CORRUPCIÓN.
SO4 ACTIONS TAKEN IN RESPONSE TO INCIDENTS OF CORRUPTION. 31
PUBLIC POLICY
PUBLIC POLICY POSITIONS AND PARTICIPATION IN PUBLIC POLICY DEVELOPMENT AND LOBBYING. TOTAL VALUE OF FINANCIAL AND IN-KIND CONTRIBUTIONS TO POLITICAL PARTIES, POLITICIANS, AND RELATED INSTITUTIONS BY COUNTRY.
PURSUANT TO ITS CODE OF ETHICS, ESVAL REJECTS ANY FORM OF INFLUENCE TO OBTAIN BENEFITS THAT ARE NOT
BASED ON APPLICABLE LEGALITY.
PURSUANT TO ITS CODE OF ETHICS, ESVAL CANNOT MAKE CONTRIBUTIONS TO POLITICAL PARTIES.
SO5
SO6*
COMPLIANCE WITH THE REGULATION
MONETARY VALUE OF SIGNIFICANT FINES AND TOTAL NUMBER OF NON-MONETARY PENALTIES FOR NON-COMPLIANCE WITH LAWS AND REGULATIONS, RELATED TO SOCIETY DEALINGS (GOVERNMENT, COMMUNITY, INSTITUTIONS. ACADEMICS, NGOS, ETC.).
DURING THE REPORTING PERIOD, THERE WERE NO SIGNIFICANT PENALTIES OR FINES FOR NON-COMPLIANCE
WITH LAWS AND REGULATIONS.
SO8
*Additional indicator
NUMBER INDICATOR PAGE
08 Global Reporting Initiative (GRI) Index
102
MANAGEMENT APPROACH.
Economic Area
80DMA
ECONOMIC VALUE GENERATED AND DISTRIBUTED
FINANCIAL ASSISTANCE RECEIVED FROM GOVERNMENT.
RANGE OF RATIOS OF STANDARD ENTRY LEVEL WAGE COMPARED TO LOCAL MINIMUM WAGE.
83-85
IN 2009, ESVAL HAD ACCESS TO A TAX FRANCHISE FOR TRAINING AMOUNTING TO CLP38,562,063 THAT WAS 100%
OF THE SENCE33 FRANCHISE.
68
EC1
EC4
EC5*
ECONOMIC PERFORMANCE
PRACTICES AND PROPORTION OF SPENDING ON LOCALLY-BASED SUPPLIERS.
PROCEDURES FOR LOCAL HIRING AND PROPORTION OF SENIOR MANAGEMENT.
63
ALL ESVAL’S SENIOR MANAGEMENT POSITIONS ARE FILLED BY CHILEAN PROFESSIONALS.
EC6
EC7
MARKET PRESENCE
DESCRIPTION OF INFRASTRUCTURE INVESTMENTS AND SERVICES PROVIDED FOR PUBLIC BENEFIT.
10-11, 20, 81-82EC8
INDIRECT ECONOMIC IMPACTS
*Additional indicator33National Training and Employment Department
NUMBER INDICATOR PAGE
103Esval Sustainabil ity Report 2009
To the General Management of ESVAL S.A.
Verification scope, bases and objectives
We have made a limited independent verification of the information contained in the Sustainability Report 2009 of ESVAL S.A pursuant to the ISAE 3000 standard, which is limited to asking questions, undertaking analytical procedures and tests of the data sources and analyzing the procedures, systems and processes used to issue the report.
The content of such report is the responsibility of the management of ESVAL S.A.. Our responsibility was to review the report and make conclusions about the data furnished by ESVAL S.A. in its Sustainability Report 2009, in accordance with the verification and scope outlined below. The content was appraised according to the information of the main impacts on, risks to and opportunities of stakeholders and from a long-term perspective.
The review was carried out at the corporate offices where the data and information contained in the report was examined by means of:
• Reviewing the processes, procedures and systems for gathering, compiling and disclosing the data.• Reviewing the pertinent information according to its materiality.• Verifying and consolidating the data furnished by ESVAL S.A..• Reliability of the data and information
in the report by means of the sources cited and access to complementary information.• Selective analysis of qualitative and quantitative information of the GRI indicators included in the report.• Analyzing whether the structure and content of the Sustainability Report 2009 of Esval S.A. is in keeping with what is set forth in the G3 guidelines of the GRI.
Materiality
To comply with the materiality principle in drawing up the report, a revision of external factors was considered, by means of benchmarking sustainability reports of other water utilities, analyzing press articles to find out the significant issues for the Company and that might be important when drawing up the sustainability report. A workshop was also held with community representatives to get stakeholder insight of the information presented in the sustainability report. Balanced Information
Balanced information was presented, reflecting the positive and negative aspects of ESVAL’s performance on issues presented in the Sustainability Report 2009.
Information Comparability
The information provided in the report includes data beyond the year defined in the report’s scope, allowing for comparisons of the company’s performance over a two- to three-year timescale.
Our Independence
As a way of assuring our independence in the verification of the sustainability report, we adhered to the guidelines of the Code of Ethics of the International Federation of Accountants (IFAC).
Remarks
For ESVAL S.A. to progress with continuous improvement of sustainability, we would like to make the following remarks:
1) Improve the information references used, particularly the quantitative data, making it easier for stakeholders who wish to review the original sources and giving the report more reliability.2) In regard to periodicity and to improve the process of informing and analyzing the results in the reporting year, the report should be disseminated more timely to stakeholders and not so late in the year after releasing the report.3) Improve the information on the main impacts, risks and opportunities, either for stakeholders or from a long-term perspective.4) The data mainly concerns the company’s own performance with various issues. To enhance the comparability of the development of ESVAL S.A., it is suggested that data of other water utilities be provided.
Conclusions
Considering the review of the report and the remarks made, the following are our conclusions:
• There is no evidence and we are unaware of any aspect that leads us
to believe that the information presented contains material errors.• There is no evidence and we are unaware of any aspect that leads us to believe that the Sustainability Report 2009 of ESVAL S.A. was not drawn up in accordance with the G3/2006 guidelines on issuing sustainability reports of the Global Reporting Initiative (GRI).
• There is no evidence and we are unaware of any aspect that leads us to conclude that the self- assessment made by ESVAL S.A. does not correspond to level A in accordance with the standards laid down in the G3/2006 guidelines on issuing sustainability reports of the GRI.
Mercedes Vita HHSE Operational Manager
Bureau Veritas Chile
Santiago, Chile, December 13, 2010
INDEPENDENT VERIFICATION REPORT OF THE ANNUAL CORPORATE SUSTAINABILITY REPORT 2009 OF ESVAL S.A.