Material topic
Local development
GRI 103-2, 103-3

For us, being trustworthy and socially intelligent means being able to co-create a positive and structured legacy for the communities impacted by our operations. We achieve this goal through a good relationship with society, promoting positive transformations for local development in a harmonious environment, based on respect and empathy.

Promoting local development means implementing local actions or the localized micro-regions surrounding our businesses that allow for social inclusion, strengthening and diversification of the local economy, improvement and innovation in public policies, environmental protection and rational use of natural resources, social mobilization, infrastructure and public facilities.

With this in mind, we developed a social strategy that began with social characterization, was built through the dialogue established in the social agenda and resulted in Local Development Plans (LDPs) for each region. This process of understanding the needs of each locality and interacting with social actors has been conducted since 2015. This has made it possible to pay attention to listen to the demands of the communities, swap knowledge, list material topics and to establish priorities for action.

Subsequent to this process, the synergies and connections between the LDPs enabled us to establish Nexa’s four strategic axes that guide our social projects portfolio starting in 2018: Local Economic Development, Public Management and Social Participation, Socio-Environmental, Childhood and Youth Aspects. For 2019, our projects portfolio was adjusted to meet this new strategy, both in Brazil and Peru.

Social Investment GRI 413-1 SDG 4.4, 8.6, 10.2

In 2018, our social investment with own, incentive and outside funding totaled US$ 10.4 million. The decline from the US$ 14.6 million allocated in 2017 was mainly due to the difficulty of approving projects through the Peruvian government’s “Works for Taxes” counterparty program for social initiatives. Of the nearly US$ 7 million budgeted for incentive projects, only US$ 1.1 million was invested in the year. GRI 203-1

We sponsored in 2018 a total of 193 projects in 17 locations in Brazil and Peru, benefiting more than 29 thousand people. The projects are structured according to the four strategic axes.

Local Economic Development Axis

We want to contribute to the sustainable economic development of the territories, through the enhancement of their local resources, the qualification of people and environmental protection.

Fisheries and Tourism Plan SDG 8.9, 12.B, 14.7

The Social Agenda in 2018 for Três Marias identified the demand for tourism planning in the community of Beira Rio, which already has a tourist flow directed to the practice of sport fishing and other nautical and leisure activities. Tourism is one of the economic development alternatives for the region, especially that linked to the fishing segment, but still lacks planning and structuring. The project aims to value and develop tourism in the region, with emphasis on tourism and sport fishing, positively impacting the local economy and environmental preservation.

In order to help promote the destination as a relevant option for visitors, we have partnered with Turismo 360 and mapped the entire tourism and fishing chain in the area, building the Tourism and Fisheries Sector Plan and its implementation strategy. The preparation of the plan was conducted using a participatory approach, based on four workshops attended by more than 50 local representatives. The actions were detailed and validated together with the participants.

As a result of the survey, 148 fishermen in the Beira Rio neighborhood were identified: 82% men and 18% women. Of these, 64 have other sources of income, acting in tourism or as fishing guides. Cultural, environmental and food attractions of the neighborhood and surroundings areas also were identified, which can be helped by the plan.

Asfaz Hands that Germinate Project
This project was created within the strategy to stimulate the economic autonomy of Três Marias, expanding job opportunities for its inhabitants and promoting efforts to improve pesticide-free vegetable production and sale of the products to the community in general. The project benefits the Community Farm Association (Asfaz), made up of 40 families that have joined due to social vulnerability issues, seeking new opportunities for reinsertion into the market and the community. This work involves actions both to boost the productivity of greenhouses (10 built in 2017 and four new ones in 2018), as well as to train farmers in dealing with administrative and commercial questions. One example was the adoption of agronomic markings, which led to a more than 20% improvement in production and loss management results. Also important were customer service training, management training and consulting sessions for the joint preparation of the association’s Commercial Plan.

Entrepreneurship and new business
Our intention is to promote more self-employment opportunities for young people, women and individuals in greater vulnerability through entrepreneurial actions. With the intervention in 2018, we expect to see an average 27% improvement in the profitability of the companies supported by the project. We followed 165 existing businesses (El Porvenir, Cajamarquilla, Shalipayco and Magistral) and promoted the opening of four new businesses. In the period covered in the report, 695 persons were trained (of which 600 were women) and 37 business plans were prepared.

Public Management and Social Participation Axis

In this strategic area, our objective is to stimulate social participation, strengthening citizenship and a pro-active civil society while also encouraging improved public sector management. The final goal is more effective public policy development. We highlight below some of the projects during the period:

Program to support public management – integrated solid waste management work front SDG 11.6
We supported the city of Vazante regarding the creation of an Integrated Solid Waste Management Plan (PGIRS), adopting participatory methodology. The project helped us guarantee mechanisms for participation and social control through the creation of a Steering Committee (with a Nexa representative), a Support Group (political involvement group) and community meetings (seven in total), public consultation and a public hearing attended by 244 people. During the event, held at the end of 2018, the process for preparation of the plan and the actions necessary to address the problems identified in the diagnosis were presented. Among the definitions was the expansion of solid waste collection in the region, currently standing at 2.65 tons/day. In the first two years (2019-2020), the goal is to increase collections by 1.2 tons/day, which will be possible by raising the population’s awareness of the issue and the inclusion and training of the collectors. The project also is linked to the Socio-environmental axis.

Program to support public management – health modernization front
We support the city of Santana da Boa Vista (RS) through a project designed to help the municipality achieve financial equilibrium, with the objective being to monitor the spending targets established in 2017. The development of financial management with emphasis on collections and improvement of investment capacity together with a project aimed at the efficiency of the municipal health system were the mains demand identified in the municipality. This was established through management software and training in the cost control and revenue collection increase methodology, along with a health efficiency measure.

Social Agenda – community participation group
The Social Agenda was established in 2015, based on a social description of the regions in which we operate and full dialogue with all players. As early as 2018, we stimulated social mobilization through workshops conducted from the LDP content. Four meetings were held in each of Nexa’s work areas in Brazil (Juiz de Fora, Vazante, Morro Agudo and Três Marias). These meetings led to discussions of solutions and chains of action in the project formats. The results were summarized in pre-project social registries, to be carried out in 2019. This process was of paramount importance for construction of social projects for the areas in question.

Socio-Environmental Axis

We aim to contribute to improving the availability and quality of water, solid waste management and environmental health conditions.

Production and sustainable use of water SDG 6.A
This project seeks to contribute to the improvement of water availability for the family farmers of Morro Agudo through the conservation and protection of springs and riparian forests, orderly capture and rational use of water in agricultural production. After an environmental diagnosis conducted in 2018, the actions for preservation and conservation of water sources and riparian forests will begin. At this stage, areas that are in compliance with environmental legislation will be protected by smooth wire fences, while the others are converted into Degraded Area Recovery Projects (PRAD).

Good Rural Practices Project
The Morro Agudo Good Rural Practices Project in Paracatu (MG) was designed to promote agricultural and environmental technical assistance for farmers in the rural region of Morro Agudo. It is a project for awareness-raising and mobilization to improve the productive processes in the field and environmentally correct deforestation practices in a Permanent Preservation Area (PPA), for waste disposal, sewage treatment and environmental education focused on the preservation of water source springs. In all, 30 farmers are assisted by the project.

Safe Water
The objective is to contribute to increased access to drinking water and sanitation for communities in the vicinity of our operations in Peru. In 2018, 2,215 households received drinking water, 365 homes were connected to adequate sanitation systems, four water systems were improved, and 12 JASS (Management and Sanitation Services Administration) operations were formalized and placed into operation. In addition, three water system registries were prepared.

Infancy and Youth Axis

Our mission is to contribute to the social development of children and young people, to make them protagonists and social participants, in addition to being trained and qualified for study and work. Hence, we seek to strengthen the social protection network and social participation process.

VIA – Support for the Children and Adolescents Law SDG 5.2, 16.2

The customized project seeks to combat the violation of the rights of children and adolescents, with the improvement of the Social Protection Network (SPN) and heightened public awareness. VIA in Aripuanã is run in an expanded format, designed to intensify actions to prevent and address violations of child and teenage rights, especially sexual abuse and exploitation. It also strives to raise the consciousness of employees and the community about violence against women.

In 2018, we began construction of a Strategy for the Prevention and Care of Cases of Sexual Violence against Children and Adolescents (VSCA), with the participation of professionals from the Social Protection Network for Children and Adolescents in Aripuanã (MT).

Information and community awareness initiatives were also carried out through educational actions for parents, teens, children and the community at large, addressing the Rights of Children and Adolescents (ACD) and prevention as contained in the VSCA.

Youth 3.0 (Juventude 3.0)
The Youth 3.0 project aims to reduce the vulnerability of teens and young people (aged 15-24) in Igrejinha, a Juiz de Fora neighborhood, by expanding opportunities for coexistence and participation of these young people in the community. It stimulates self-knowledge, the preparation of a life project, the creation of spaces for youth participation in the community and the promotion of social initiatives and contributions. Toward this end, it seeks to empower new perspectives for the future and improve young people’s self-esteem so that they engage in improvement projects in their communities. In 2018, four modules were implemented — Identity and Purpose, Leadership, Communication and Culture, and School Mobilization.

Improvement of educational quality in Peru
This program aims to contribute to more and better educational achievements for children living in the area of the company’s direct influence. It combines different strategies, such as teacher training, subsidies for hiring teachers and maintenance of libraries, among others. Among the results in 2018 were:

Improved academic performance in mathematics and verbal reasoning;

5 teachers hired through funding from the company and 77 teachers trained in pedagogical strategies;

6,281 children benefiting from the program, 67% of whom received a basic kit of materials for the start of the school year;

3 school libraries set up.

Opportunities for higher education
This activity aims to facilitate the access of outstanding youths to higher education opportunities. In 2018, 45 young people (30 in El Porvenir and 15 in Shalipayco) attended higher education courses through full or partial scholarships financed by the company; 68 new scholarships were awarded (16 in El Porvenir, 30 in Cerro Lindo, 20 in Cajamarquilla and 2 in Magistral) and the opportunity was offered to 465 students, especially in Shalipayco, to attend pre-university centers to improve their chances to continue their studies at the university or college technical level.

6 thousand
children benefiting from the program of educational quality in Peru.

Volunteer Program (Programa de voluntariado)

Transversal to the strategic axes, the We Are Everyone program, created in 2017, has already advanced significantly to a more mature level, with hundreds of actions carried out in all the organization’s units and corporate centers. In 2018, 7,806 hours were dedicated to actions, involving 2,287 voluntary actions and more than 10 thousand beneficiaries.

The number of hours was 35% higher than the total reached in 2017. By 2019, the goal is to reach 15 thousand volunteer hours and advance from 20% to 40% in the level of volunteer maturity in all units, positively impacting Local Development. At the end of the year, in our Leadership Meeting, volunteering was highlighted as a company strategy. Recognition was given to two units with the highest level of maturity in volunteering; two innovative initiatives; and each unit’s most inspiring volunteers.

More than
7 thousand
hours dedicated to the program.

The two innovative initiatives were:

INTER@JA, from Juiz de Fora, directed to young people who have great difficulty in entering universities, technical courses and higher quality jobs. This struggle leads to a lack of perspectives and even to dropping out of school, since the individuals do not identify possibilities for their inclusion in the competitive formal labor market.

Alternative Cultivation, at Cajamarquilla, which developed alternate vegetable crops rich in nutritional content using recycled PET bottles. The objective is to supplement the diet of families that have little access to a varied menu with high nutritional value foodstuffs, thus positively impacting the development of children and teens in the nearby communities.

For 2019, our main challenges are to intensify a more recurring involvement of employees and integrate outsourced workers in the activities, further encouraging a structured volunteering culture in the units; replace one-off initiatives for more continuous and higher impact actions; and expanding partnerships with organizations to support project feasibility actions. In addition to being a legacy for the communities, the volunteer program contributes to the improvement of the organizational climate, closer relations between employees and the construction of networks.