Environmental Management

Considering the population growth and the need for global development, environmental resources and the environment are and probably will be increasingly in demand. This context means that organizations must continually improve their processes and policies to generate lower environmental impacts and be more efficient.

In addition, the environmental management generates consequential impacts on other capitals of the company, such as financial, manufactured, human and relations with other stakeholders. Looking from the perspective of opportunities, good environmental management can positively impact those capitals, thus generating greater value for the environment and the business.

At WEG, we continuously seek to improve processes that reduce environmental impacts, basing the activities on preventive measures to protect the environment (such as the conservation of natural resources and management of the emission and waste generation), on investments in technologies and on constant process improvement by establishing environmental objectives and targets.

This environmental management is also important to stimulate and contribute to theagenda and goals of the Sustainable Development Goals (SDGs), understanding that the constant effort to improve efficiency and reduce the environmental impacts from economic activities are aligned and impact SDGs 12.

RESPONSIBLE CONSUMPTION AND PRODUCTION

SDG 12 - Responsible consumption and production

12.2 By 2030, achieve sustainable management and efficient use of natural resources.

12.5 By 2030, substantially reduce waste generation by means of prevention, reduction, recycling and reuse.

Environmental Improvement Programs

WEG Kaizen

WEG Kaizen is one of the forms of participative management that promotes the participation of employees in problem solution and continuous improvement activities that generate positive results in all processes. History of WEG Kaizen projects implemented in Brazil with environmental gains:

WEG Manufacturing System (WMS)

Our WEG Manufacturing System (WMS) program has eco-efficiency and cleaner production as its management practice. This program is based on the concepts, principles and techniques of WCM - World Class Manufacturing.

The WMS is based on technical and managerial pillars, including the Environment Pillar, which aims at:

Reducing environmental impacts
Reducing consumption of energy and water resources
Reducing waste
Reducing losses and waste.

The objectives and indicators of the environment pillar of the program linked to the productive process are related to:

Electricity, fuels and compressed air;
Waste;
Consumption of inputs;
Chemical cleaning.

Recycling Program

Recycling is a serious subject for WEG, extended up to business. By means of the program for reusing electric motors, the "Exchange Plan", the company has granted a discount on the purchase of a new motor with performance above the law requirements in exchange for a used one. Besides the financial benefit to the customers, the initiative ensures that the low-efficiency motor is no longer used. Once collected by the company, the motors are dismantled and separated into parts for distribution to accredited and tracked recyclers.

Benefits

Reduction of electric energy consumption
Reliability of the plant
Reduction of operating costs
Factory Warranty
Standard products - offer complete interchangeability with motors already installed

Restricted Substances

In order to reduce the use of restricted substances in our processes and products, we created the WEG Restricted Substances List, which undergoes periodic updates and is in line with the main national and international regulations. This list is used in different stages of WEG processes, such as the manufacture of products and packaging, the development of new materials and, mainly, with suppliers of raw materials, components and inputs.

Our List of Restricted Substances is also present in the Supplier’s Code of Ethics and in the Supply Agreements of our supply chain, showing the importance of the subject within the company. In line with the interests of the company, our suppliers are committed to delivering their products to us in accordance with this list.

In line with the issue of restricted substances, WEG is committed to ensuring that its products are free of conflict minerals and, consequently, do not finance armed conflicts.

Investments in Environment

Environmental investments are classified into three categories:

Environmental control: Related to treatment and disposal of waste, treatment of atmospheric and liquid emissions, environmental liability insurances and depreciation of devices and expenses with materials and maintenance.

Equipment: Related to the purchase of equipment for environmental control.

Management: Related to the remuneration of training personnel who act in environmental management, research and development, and certification of environmental management systems.

Below is the amount invested in each category in Brazil in 2020 in thousand BRL:

Sustainable Packaging and Biodiversity Preservation

We have a packaging factory, RF Reflorestadora, in Brazil. This company produces all the wooden packaging used in our various product lines. Therefore, we have our own reforestation areas that guarantee the continuous supply of wood and the preservation of this natural resource and areas of natural forests, legal reserves and permanent preservation areas that help in the preservation of the local biodiversity.