06
Sustainability Report
Sonae SGPS, S.A.
.Index
05
1. Chairman’s Statement
07
10
10
10
13
2. Sonae Group business approach and portfolio
2.1 Governance Model
Share Ownership
Holding Company Structure
Group Ombudsman
15
16
16
16
17
18
18
19
22
24
25
3. Our approach towards sustainable management
Shareholder Value
Environment in the Governance Model
Knowledge
Community and Education
3.1 Sonae Holding’s role in relation to the management practices of sub-holdings
Global Compact and Sustainable Development
3.2. Values and Principles
3.3. Managing New Risks: Strategic and Operational
Sonae Risk Management Process
Business Risk Model
27
4. Commitments and Guidance to the sub-holdings
29
5. Main Group Sustainability Milestones
33
33
38
46
50
56
62
6. Examples of Sustainability Strategy in action in the sub-holdings
6.1 Risk Management
6.2 Eco-Efficiency
6.3 Business Chain
6.4 Human Capital
6.5 Stakeholder Dialogue
6.6 Community Involvement
69
7. New Risks transformed into New Markets and New Businesses
74
Glossary
The publication of our first Sonae Group Sustainability Report
reflects our intention to communicate in a transparent way with
our key stakeholders, in particular investors, employees and the
general public.
1. Chairman’s Statement
This Report describes how sustainability is incorporated into the Sonae Group’s management structure and practices,
with special emphasis on corporate governance and risk management; the commitments that Sonae SGPS, as the
Sonae Group holding company, makes in relation to our sub-holdings, in its role as the manager of a portfolio of
diversified businesses; and a range of sustainability practices that have been or are being implemented across the
Sonae Group. The Report demonstrates how Sonae, in addition to creating economic value, acts responsibly both
environmentally and socially.
Although this is the Group’s first sustainability report, it is a continuation and extension of the work begun in 2001,
when we published our first Group Environmental Report. Each of our sub-holdings have been making progress in
terms of “walking the talk” of sustainability, as the following pages will show. All sub-holdings, with the exception
of Sonae Capital, will issue Sustainability Reports during 2007. In the case of Sonae Sierra, 2006 will be the third
consecutive year for which an outstanding sustainability report has been published, an achievement of which we can
feel justifiably proud.
The specific characteristics, history and market sectors of each of the Group’s businesses have been determining
factors in the manner in which sustainability continues to be integrated into the governance model of each, and explain
the differing speeds of implementation. As a portfolio manager, we encourage our businesses to seek constantly
to improve the manner in which we integrate social and environmental issues into our management practices, to
develop appropriate reporting and measurement, and to anticipate new trends in order to identify new business
opportunities arising from sustainability. Due to our specific circumstances and challenges however, each sub-holding
is directly responsible for identifying the specific opportunities that may arise from this integrated approach, and to
define the best strategy to maximise value creation.
In addition to the key role of Sonae SGPS to identify overall Group guidelines in this area, one of other main tasks is to
play an active role in international organisations in which the sustainability agenda is being developed and defined. In
this respect, Sonae SGPS continues to play an active role in the World Business Council for Sustainable Development
and in activities undertaken by the Portuguese branch of this organisation, the BCSD Portugal.
In 2004, Sonae SGPS signed the United Nations Global Compact, a voluntary commitment which involves the
disclosure of information each year on how its 10 principles, covering labour, environmental and anti-corruption
practices, are applied and complied with. It is an area that the Group is actively working on to improve. In 2005, Sonae
SGPS also signed the World Safety Declaration, a document that was approved at the XVII World Health and Safety at
Work Congress. This declaration aims to establish goals and define criteria for the evaluation of safety improvements
introduced at the workplace, and seeks to encourage signatory companies to cooperate in the search for better
solutions and to report results achieved at the next Congress meeting that will take place in 2008. Sonae will be
present and participate actively in this event.
In this document therefore, we report on our practices and explain our ambitions and commitments, but we also
accept our limitations. At the same time, we commit to constantly strive to improve in these areas which are so crucial
for business and society at large.
Belmiro de Azevedo
Chairman
Sustainability Report 06 Sonae SGPS, S.A.
05
Sonae was founded in 1959 in the wood products business and today is a diversified, integrated
group made up of different management teams. In 2006, the Sonae Group generated turnover of
4,383 million euros and directly employed 33,181 people spread across several continents, cultures
and races. In Portugal, the gross value added (GVA) generated to society was 0.8% of Portuguese
GVA and our employees represented 0.6% of the Portuguese employed population.
6
Sonae SGPS, S.A. Sustainability Report 06
2. Sonae Group business approach
and portfolio
“If we have the right financial resources, shareholder stability, professional management, good educational and training levels as part of our culture and principles, than
we have the key ingredients to work together as a team and succeed in the long term”
Belmiro de Azevedo, speech given to Sonae Industria Managers, 26th September 2000, Troia, Portugal
Sonae started business in Maia, in the wood products
business and more specifically the production of highpressure decorative laminates. During its first twenty
years of existence, Sonae developed as a small to medium
size business, focused on the area of wood based panels.
During the 1980s, the company began a period of rapid
growth, which coincided with Portugal’s entry into the
European Union. During this period, Sonae also began
a process of diversification through the acquisition of
a supermarket chain, followed by the launch of the first
Continente hyper-market in Portugal.
Today, Sonae SGPS, SA is the group holding company,
managing a diversified portfolio of businesses:
Modelo Continente (food and non-food retail), Sonae
Sierra (development, management and investment
in shopping centres), Sonaecom (mobile and fixed
telecommunications, media, Internet and IT services)
and Sonae Capital (tourism, engineering services
and real estate development, facility management,
insurance brokerage and risk management, and seed
and risk capital).
During these years of growth, the various group companies
developed their businesses in an independent manner,
identifying specific strategies in relation to their markets.
Sonae Indústria, the Group’s first business area in wood
based panels, was spun off from the Group in 2005. The
spin off was considered necessary to give Sonae Indústria
improved access to international financial markets to help
fund its future growth.
Modelo Continente is currently operating entirely in
Portugal but is considering possible options for future
growth outside the country. Sonae Sierra has focused on
an international strategy. It currently has a portfolio of
major shopping centre projects under construction and
centres already in operation, in Brazil, Germany, Greece,
Spain and Italy, in addition to Portugal. Sonaecom
has been operating in Portugal since 1994 (but only
known as Sonaecom since 1999), and is focused on
Telecommunications, Media, and Software and Systems
Information (SSI). Over the years, Modelo Continente was
listed on the Portuguese securities market (Euronext,
Lisbon) between 1987 and 2006, and Sonae Sierra
between 1997 and 2001. Currently, Sonae SGPS and
Sonaecom are those companies listed on the Euronext.
In view of the economic, social and environmental
impacts of the Sonae Group, we have publicly committed
to develop our business activities based on the principles
of sustainable development, which imply a continuous
challenge to maximise positive and minimise potentially
negative impacts on the environment and society.
Share Price Performance
(Base 100)
200
180
160
140
120
100
80
60
40
Dec.01 Jun.02 Dec.02
Sonae SGPS
Jun.03 Dec.03 Jun.04 Dec.04 Jun.05
Dec.05 Jun.06 Dec.06
Sonaecom
Sustainability Report 06 Sonae SGPS, S.A.
07
The Group portfolio is currently structured as follows:
Sonae SGPS
100%
50%
51,92%
100%
Modelo Continente
Sonae Sierra
Sonaecom
Food and Non Food Retail
Shopping Centers
Telecommunications
Services
Hypermarkets
Supermarkets
Consumer Electronics
Apparel
Sports Goods
Computers
DIY
Kidswear
Travel Agencies
Pharmacies
Mobile Communications
Sierra Investments
Sierra Management
Sierra Development
Sonae Sierra Brazil
Mobile
Fixed
Media
S&SI1
Portugal
Spain
Greece
Germany
Italy
Brazil
Portugal
Tourism
Engineering Services
and Real Estate
Development
Facility Management
Insurance Brokerage
and
Risk Management
Seed and Risk
Capital
Sonae Capital
Portugal
France
Brazil
Portugal
= Size of Free Float
1 Software & Systems Integration
Each of the four sub-holdings has specific environmental
and social impacts as a direct result of their activities, as
the chart below shows.
Major Impacts by sub-holding
Social
Environmental
Modelo Continente
Sonae Sierra
Sonae Capital
. Energy
. Transport
. Waste
. Climate Change
. Land Use
. Supply Chain
. Energy
. Transport
. Waste
. Climate Change
. Water Consumption
. Land Use
. Supply Chain
. Energy
. Waste
. Electromagnetic Fields
. Energy
. Waste
. Transport
. Water
. Land Use
. Direct and Indirect job
creation
. Community involvement
. Health and Safety
(employees, customers
and visitors)
. Employee satisfaction
. Food safety
. Supply Chain
. Direct and Indirect job
creation
. Community involvement
. Health and Safety
(employees, tenants,
suppliers and visitors)
. Responsible Procurement
. Employee satisfaction
. Supply Chain
. Digital Inclusion
. Community involvement
. Health and Safety
(employees, customers
and visitors)
. Employee satisfaction
. Information Society
. Direct and Indirect
job creation
. Community involvement
. Health and Safety
(employees, customers
and visitors)
. Food safety
. Employee satisfaction
In today’s complex world, the Group’s impacts, risks and
opportunities are interlinked, and involve economic, environmental, social and governance factors. This report aims
to inform our stakeholders about the way we have been
managing these impacts and risks.
08
Sonaecom
Sonae SGPS, S.A. Sustainability Report 06
The Economic and Social Impact of the Sonae Group
Our Wealth Generation
Direct employment by Sub holding
3% 1% 2%
Direct Economic Value Generated and its distribution in 2006
(Million euros)
Economic Value
Retained
401
Total Economic
Value Distributed
4,536
Total of Direct
Economic
Value Generated
4,000
3,000
2,000
1,000
4,937
0
Modelo Continente
Sonae Sierra
Sonaecom
Sonae Capital
6,000
Employees*
5,000
Our Human Capital
94%
* Staff numbers as at 31.12.2006
The importance of the Sonae group for the Portuguese Economy in 20061:
Type of job contract at Sonae Group
15%
Gross Value Added (GVA) in Portugal represents 0.8% of Portuguese GVA
Employees in Portugal represent 0.6% of total Portuguese population employed
1 Based on data from the National Statistical Institute (INE):
Portuguese population figures and preliminary GVA
Permanent Contract
Temporary
85%
Total Nº Employees = 33,181; 67% Female; 33 % Male
Total Nº Employees in Portugal = 98%
Total Nº Employees abroad = 2%
Our Wealth
Economic Value Distributed to our stakeholders
Structure of the Economic Value Distributed
4% 1%
13%
Operating Costs
Staff Costs
Providers of Capital
Government
82%
Operating Costs = External Suppliers and Services + Cost of Goods
Sold and Materials Consumed + Other Costs
Staff Costs = Employee Wages ands Benefits
Payments to Providers of Capital = Financial Costs + Dividends
Payments to Government = Taxes (excluding deferred taxes)
Wealth Generated by the Sonae Group
2006
Turnover (Sales + services rendered)
4,384
Turnover in Portugal
4,060
Gross Value Added (GVA)
1,112
Operational Profit EBIT
357
Operational Cash Flow EBITDA
599
Amounts in million Euro
GVA = Turnover + Changes in stocks + Own work capitalised +
Supplementary income - cost of goods sold and materials
consumed - External supplies and services
For more detailed financial information about the Sonae
Group, please go to the Investors Relations section on the
company website at www.sonae.pt
Sustainability Report 06 Sonae SGPS, S.A.
09
2.1. Governance Model
“The issues of governance and the transparency of a company in relation to markets is
one of the corner stones of a credible and sustainable market economy. It is up to all of
us to contribute towards preserving the credibility and sustainability of the economic
model in which the organisation of our society is placed....
...[we are] increasingly responsible for the transparency and the way in which we
prepare, control and communicate relevant information to the markets. We know that
this information is vital for investors and financiers to take decisions”.
Belmiro de Azevedo, XX Economic Round Table Meeting, November 2002, Barcelona
“ ... we have consistently taken, over the years, clear decisions in favour of free and fair
trade, transparent reporting to the authorities and society, internal social cohesion
within the group, and have actively supported international organizations dedicated
to spreading principles of good governance. We were the first Portuguese company to
join the World Business Council for Sustainable Development, and we were also one of
the founding fathers of the Portuguese Chapter of the Council. We have also joined the
European Corporate Governance Institute”
Belmiro de Azevedo, IV Top Managers’ Meeting – Sonae Sierra, December 2004
Hand in hand with the growth of the Sonae Group has
been a constant concern to adopt best worldwide
management practices in relation to governance
and sustainable development, as well as the need
to understand the signals coming from international
organisations in order to anticipate management trends
and potential business opportunities. Our values and
principles which were finalised and published in 1999
reflect this reality, and are, currently, wholly compatible
with the demands of international society. Sonae seeks
to associate itself with leading international organisations,
requiring management to strive to continually update
and improve itself, in order to meet the expectations of
our various stakeholders and of society in general.
Sonae Group Share Capital Ownership
Efanor Investimentos, a family holding company, of which
Belmiro de Azevedo is chairman, holds a majority stake
in Sonae SGPS. It held approximately 53% of the shares
and 56% of the voting rights at 31 December 2006. Sonae
SGPS is listed in Lisbon on the Euronext stock exchange.
The remaining free float is widely held.
Although the Sonae Group is controlled by Belmiro de
Azevedo through a majority stake in the share capital
and voting rights, the Group is not run as a typical
family business, where bloodlines can take precedence
over individual merit and family issues can confuse
business affairs. In our opinion, the existence of an
active and involved reference shareholder also brings
10
Sonae SGPS, S.A. Sustainability Report 06
greater stability to management, allows a consistent and
longer term view to be taken, facilitates the process of
motivating employees and brings greater willingness
to seek and adopt innovation, while at the same time
promoting a balanced and equitable approach to all
of our shareholders and other stakeholders. It also
means that there are no conflicts resulting from the
sharing of power between controlling shareholders or
from the separation of the interest of shareholders and
management. Responsibilities are focused and very
clear and a management system based on trust and
transparency becomes an imperative.
Sonae Holding Structure
A management team supported by one key shareholder
needs to include the very best managers available. They
should possess a high level of drive, curiosity and a desire
to learn about new ideas and concepts, and they should
be brave enough to question the status quo and to
propose new approaches to business. It is fundamental
that there should be open and transparent discussions
among management about business strategy and its
operational implementation.
Therefore, Sonae has developed procedures to ensure that:
. strategies are evaluated
. day to day management is analysed critically
. risks are monitored
. there is a continuously developing internal control system
“It is crucial that the company is able to implement internal procedures that allow
strategies to be evaluated, management to be followed up on and critically appraised,
risks to be monitored and internal control systems implemented. And at the same time,
ensure sustainability in the medium/long term, by adopting environmental, social and
labour policies which preserve natural resources and place value on human capital.”
Belmiro de Azevedo, XX Economic Round Table Meeting, November 2002, Barcelona
Sustainability Report 06 Sonae SGPS, S.A.
11
. business is sustainable in the medium and long term
. environmental policies are adopted to improve ecoefficiency and to minimise our environmental footprint
. policies and processes are adopted to maximise our
human capital
As shown below, the two key governing bodies of Sonae
SGPS are the Board of Directors made up of 5 executive and
4 non-executive members (of which 3 are independent),
and the Executive Committee. An important feature of the
Executive Committee is that it includes the CEOs of each
of the sub-holdings. This provides a direct link between
each of the businesses areas and the Holding company,
which facilitates the sharing of business strategies across
the Group. In this way autonomy is given to each subholding to decide the best means of managing its own
businesses, while ideas are shared and activity is coordinated at the top Group management level.
Sonae SGPS
Management of Strategic Decisions
Board of Directors
Chairman: Belmiro de Azevedo
Executive
Álvaro Portela
Ângelo Paupério
Nuno Jordão
Paulo de Azevedo
Non-Executive
Álvaro Cuervo
Luiz Lampreia
Michel Bon
Nuno de Azevedo
Board Nomination and
Remuneration Committee
Chairman: Belmiro de Azevedo
Board Audit and Finance Committee
Chairman: Michel Bon
Álvaro Cuervo
Luiz Lampreia
Nuno de Azevedo
Approves:
. Annual Report and
Accounts
. Annual Business
Portfolio Strategy
. Annual Business
Plan and Significant
Changes thereto
Luiz Lampreia
Michel Bon
Responsible for:
Executive Committee
CEO: Belmiro de Azevedo
Vice Presidents
Álvaro Portela
Ângelo Paupério
Vice Presidents
Nuno Jordão
Paulo de Azevedo
Decisions about
Strategy Implementation
Investors Relations José Luis Amorim
. Operational
Management
. Business Portfolio
Management
. Financial
Coordination
. Career Development
Among Top Managers
Human Resources José Côrte-Real
Corporate Communications Cristina Carneiro
Management
Control and
Administration
José Luis Amorim
Finance
André Sousa
Group knowledge sharing and coordination bodies
also exist, such as:
. Finance Committee
. Audit Committee
. Human Resources Consultative Group
. Innovation Forum
. Sustainability Forum
12
Sonae SGPS, S.A. Sustainability Report 06
Legal
Luzia Gomes Ferreira
Audit and Risk
Management
Domingos Sequeira
Tax Management
David Ferreira
The Executive Committee of
Sonae SGPS is made up of the
CEOs of each of the Group
sub-holdings
Sonae Group Ombudsman
Via its website (www.sonae.pt), fax and mail, the Sonae
Group has always given staff and the general public
direct access to the Sonae Group Ombudsman, who
reports directly to the Chairman of the Sonae Group.
This has proven to be an effective way of facilitating the
reporting of complaints, which are followed up internally
by a manager of the Sonae Holding Company to make
sure that independence and freedom of opinion are
guaranteed and that all issues are treated equally and
fairly. In all our businesses, employees are encouraged
to contribute suggestions and to openly communicate
with management on any issues which may impair their
responsibilities or may threaten their well being.
The Sonae Ombudsman in 2006
During 2006, 1.573 claims were received by the Sonae Group ombudsman.
The average time to resolve a claim in 2006 was 34 days with a falling trend in all
quarters to reach 22 days in the last quarter of the year. Considering the number of
claims received and the complexity of the problems involved, this is a demonstration
of the effort made by the services involved to improve turn around time.
Claims still not resolved at year end 2006 (2% or 38 cases) relate to recent cases or
those still in analysis.
Almost all claims are related to customers (99% in 2006).
© Klaus Post
3. Our approach towards Sustainable Management
“We are in favour of competition and believe that a key feature of successful organisations
should be their concern for the personal development of their employees as well as the
strength of their leadership.
From the point of view of Corporate Social Responsibility, a company cannot be simply
a money making machine. In addition to giving the maximum return on investment to
shareholders, businesses have to earn the respect of the societies in which they operate,
preserving social cohesion, protecting the environment, and ensuring the long term
sustainability of the planet on which we live”.
Belmiro de Azevedo, Leadership Forum, London Business School, November 2006
The management of sustainability at the Sonae Group
has always been part of the strategic development of the
company. Sustainable Development and its application
to business has become one of the main concerns of
the Group, while it has also been perceived as a way of
developing new businesses and reducing costs.
Sonae Approach to Sustainable Management
Social
Human capital has also always had a key place in the
growth strategy of the Group. In addition to training
which is specific to the improvement needs of each
employee, employees are encouraged to develop their
creativity and constantly search for excellence. “A thirst
for excellence, and a habit of constantly challenging the
businesses, demands a culture of permanent innovation
and entrepreneurship”1: a situation that can only be
achieved with a responsible and professional team.
In the same way, environmental issues have always
been an important part of the Group’s management.
For example, various training sessions have taken place
on eco efficiency so that an internal Group culture
exists which allows the continuous identification of new
methods of putting this concept into action, with the
goal of minimizing energy and water consumption, and
maximizing waste recovery.
This approach has been progressively integrated into
our management model, and implemented by each of
the sub-holdings by actions specific to their businesses.
We have made progress in the way that we practise the
principles of sustainable development, but recognise that
we will have to develop a more structured approach to
sustainability in particular in relation to international best
practice guidelines and the growing importance of nonfinancial information.
. Knowledge
. Empowerment
. Matching skills with job
functions
. Creativity
. Questioning status-quo
. Community involvement
(social, educational support)
Environment
Governance
Maximization of future Economic
Value of the Company
. Eco Efficiency
. Responsible Environmental
Management
. Implementation of Environmental
Management Systems
. Values
. Business Principles
. Risk Management
. Transparancy
. Group Knowledge sharing
and coordination
Shareholder Value
Shareholder Value
Sustainable management means managing our company
in order to maximise its profitability, while internalising
environmental, social and governance issues into our
business strategy, since these will have an influence on our
financial performance. Such a complex subject that is of
concern to all Group businesses led our Chairman in 1994 to
challenge all sub-holdings to develop an environmentally
responsible attitude towards business, and to consider the
environment as a competitive advantage.
In the same way, environmental issues have always been
an important part of the Group’s management.
1
Belmiro de Azevedo, Leadership Fórum, London Business School, November 2006
Sustainability Report 06 Sonae SGPS, S.A.
15
Environment in the Governance Model
Knowledge
In 1995, Sonae become a founder member of the World
Business Council for Sustainable Development (WBCSD),
thus formally demonstrating our conviction that
environmental issues would become key factors in the
success of companies and that business strategy based
on the principles of sustainable development represented
good corporate governance.
In Sonae, people must have the desire to
learn, and they must embrace change as
part of their careers (summary speech by
Belmiro Azevedo, Sonae Indústria Managers
Meeting, September 2000, Troia.)
Between 1995 and 2000, the Sonae Group ran several
workshops, conferences and internal eco-efficiency
programmes, and in 1999 launched the ECO2XXI
programme, aimed at encouraging eco-efficiency across
the Group. In 2000, Sonae broadened the composition
of the Environment Forum to include Environmental
Coordinators from all sub-holdings. It was a platform
for sharing information, experiences and best practices
across Group, and for challenging the sub-holdings to
take action on environmental issues. The Forum was
responsible for planning, organising and animating
training and awareness events as well as for general
communication of environmental matters across Sonae’s
businesses. It also had the responsibility of advising the
Board of Directors of Sonae on all issues concerning the
environment. The Chairman of the Forum was appointed
by the Board.
In order to develop a business management system that
is able to understand, anticipate and incorporate the
challenges that today’s business world presents to our
operations, we must be able to question the status-quo
and think creatively. Continuously updated knowledge and
the constant search for excellence constitute the corner
stones of an innovative, modern and bold organisation.
In 2001, the Sonae Group published its first Environmental
report. A further report was issued in 2003, which included
key environmental indicators from each sub-holding.
Between 2000 and 2004, a quarterly environmental
newsletter - Eco News - was also published for distribution
to all Group employees, available both in print and on the
Internet, in order to increase environmental awareness
and encourage best practices.
In 2005, the Environment Forum evolved into a
Sustainability Forum and in 2006, all sub-holdings were
invited to strengthen their sustainability strategies
and issue sustainability reports. Some sub-holdings
have already begun this process, while others are now
beginning to develop a more structured approach to
sustainable management.
The training of all Sonae staff is a factor that differentiates
Sonae Group management, since all staff are constantly
challenged to learn.
In 2004, the Sonae Learning Centre was set up in the
Sonae headquarters building in Maia. This Centre is
mainly targeted at specific training for top managers and
technical employees, and its main purpose is to provide
training, conferences, seminars, short and medium term
courses, exhibitions and social events of various kinds.
We have developed specific training sessions for business
units, but also opportunites for longer term study such
as Post-Graduation courses, specifically built to meet
the skill improvement needs of our employees. These
courses are developed in partnership with Portuguese
and International universities. Some of our employees
also complete MBAs and other post-graduate courses in
the main European Business Schools
Number of Sonae employees present in
Learning Center courses
16
Sonae SGPS, S.A. Sustainability Report 06
Year
Nº
2005
18,694
2006
19,062
Community and Education
We believe that business can contribute towards
minimising the impact of social problems that are part
of the society in which it operates. We also recognise
that access to cultural activities through partnerships
with other businesses, individuals or organisations, has a
significant contribution to make to the development of
society. Therefore, the Sonae Group has developed social
initiatives among its sub-holdings to support projects that
lead to positive long term results within the community.
In 2006, around 300 undergraduates and graduates
attended. During the day long event, the participants learn
about the Sonae Group, and meet senior Sonae managers.
The programme’s main aims are to allow talented young
people to get to know the Sonae Group and to discover
quality management potential in Portugal.
Despite being independent from the Sonae Group,
it is appropriate to mention the Belmiro de Azevedo
Foundation, a private charitable institution which supports
innovation and change in favour of the community,
especially in the arts, science, technology, education and
training. Through contributions made by sub-holdings to
the Foundation, the Group in turn contributes towards a
better educated and demanding civic society. Each subholding engages with the community both directly and
via the Foundation.
The Foundation also supports the children of employees
with scholarships for those children with outstanding
academic performance, in order to encourage their
academic development. Between 2000 and 2006, sub
holdings, through the Foundation donated a total of
approximately 24 million euros.
Since 1986, Sonae has organised the Contacto Programme,
which takes place annually and to which final year
undergraduates from Portuguese Universities and young
post graduates with MBAs are invited. More than 3,500
undergraduates have taken part in the programme since then,
and several hundred have been invited to join the Group.
Sustainability Report 06 Sonae SGPS, S.A.
17
3.1.Sonae Holding’s role in relation to the
management practices of sub-holdings
“A culture of innovation and entrepreneurship demands [...] a culture of risk taking.
It demands that one puts confidence in people, creating organisations in which they
individually are encouraged to fight against conformity, to constantly propose new
solutions. It also demands that there exist in organisations performance reward and
recognition systems, which are not exclusively based on results, in the strictest meaning
of the term”.
Belmiro de Azevedo, Leadership Forum, London Business School, November 2006
When he defined the “Ten Guiding Principles”, Belmiro de Azevedo also stated that
the values “... should last a long time, should not be a code in the sense of a creed
or mantra, and also could not be too specific at the risk of being too dogmatic and
not leaving enough freedom to all our companies to change their behaviour without
changing the values”.
Belmiro de Azevedo, The Value and Limits of Ethical Codes in Business Activity
The growth of the Sonae Group has taken place with a
lean and agile management structure, designed to allow
each company to have the capability of anticipating,
adapting and reacting to change, which is one of the basic
competitive advantages for the success of any company.
This approach to management was already present in 1985
when the Chairman defined the ten “guiding principles”
for Sonae managers (see page 20). Already at that time,
there was the concern of making the business grow
in a unified and stable manner, but allowing creativity,
flexibility and freedom of action by the managers of each
Group company in order to encourage a bold attitude
to identify business opportunities, and not run the risk
of losing them because of excessive bureaucracy or
functional issues. For the success of this management
approach, professional human resources are needed,
who combine boldness, a sense of responsibility for their
actions together with a questioning attitude towards the
world around them.
A management style of this kind is closely associated
with the visionary and guiding character of its leader,
who constantly challenges the status quo both inside
and outside the company, while at the same time setting
himself as an example of frugality and rationality in the
management of the group’s businesses and in personal
working habits.
The Group is thus united by a set of values and
principles, by a governance model and by a common
risk management methodology, in which it is expected
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Sonae SGPS, S.A. Sustainability Report 06
and desirable that each sub-holding advances and grows
in accordance with the opportunities identified in the
markets in which it operates. The Group is therefore made
up of many companies, consolidated into sub-holdings,
each of which are in different phases of development in
certain areas.
Global Compact and Sustainable Development
In 2004, Sonae SGPS signed up to the ten principles of the
UN Global Compact, which asks companies to embrace,
support and enact within their sphere of influence a
set of core values in the areas of Human Rights, Labour
Standards, the Environment and Anti-Corruption, Sonae
thus committed itself publicly to report on the manner
in which these principles are applied in the daily
management of the Group.
Some of these principles, such as the absence of child
or forced labour, and the existence of anti corruption
practices, are not only incorporated into Portuguese
law but also are part of the Sonae values and principles,
which are applied by all employees in all parts of the
world where Sonae does business.
Nonetheless, we recognise some limitations in our ability
to control the practices of all our suppliers, and although
we are not aware of any specific case along the value
chains of our sub-holdings, we commit to find alternative
suppliers if we discover any who are not complying with
the Compact principles. Each sub-holding has been
working and will continue to work on actions that move
in the direction of these principles, and we are conscious
of the need for certain aspects to be addressed with more
specific actions in the future. One area will be to look more
closely at increasing our influence on the management
practices of our suppliers and subcontractors along the
value chain, the scope of which will need to be defined
with these key stakeholders.
By signing the Global Compact, Sonae SGPS aims to drive
its sub-holdings forward towards incorporating social,
environmental and human issues in a more structured
way into their daily management. It is each sub-holding’s
responsibility to develop the appropriate approaches,
methodologies and actions to implement, and they
must analyse in a continuous and evolving manner, how
sustainability is related to their core businesses. For this to
be possible, creativity, a forward looking approach and a
sense of opportunity are the key elements in the process.
We believe that strengthening sustainability in
the core business and governance model of our
companies is fundamental to the continuous success
of our “living” company.
3.2. Values and Principles
“Ethics in Business [...] is the relationship between business and society [...] The reality
we face today is that businesses need a licence from society to operate. Or putting in
another way, businesses need to earn the respect of society in order to operate.
Even in countries where we know that our competitors are taking advantage of the local way of doing business through kickbacks, we should refuse that practice and stick
to our values of integrity and transparency without any kind of compromise. Even if
we have to lose the deal or have to give up doing business in the country, it will pay in
the future.
We do not have to make deals that do not fit the policy of the Group. The more we
refuse, the bigger will be our contribution towards a more transparent relationship
with competitors, authorities and clients.”
Belmiro de Azevedo, IV Top Managers’ Meeting – Sonae Sierra, December 2004
A set of values and principles have always existed as part of
the Group’s good management practices. Since 1985, the
ten “guiding principles” defined below have been part of
day to day management. They were targeted specifically
at Group managers and focused on the key attributes that
they should aspire to. Even at that time, the emphasis was
put on a balance between leadership qualities, personnel
development and competition on the one hand, and
integrity, personal ethics, and community involvement,
on the other.
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“There is no business that can justify any compromise with these [10] principles, or
with values such as integrity, personal ethics and social responsibility. The fight against
corruption, both public and private, has always been and will continue to be at the top
of the agenda of a group like Sonae”
Belmiro de Azevedo, Leadership Forum, London Business School, November 2006
These ten guiding principles are:
a spirit of cohesion, the shoots are open, unrestricted,
signifying creativity. This is how Sonae sees its future.
01. To be a leader, or have the capability of becoming one
02. To constantly improve their cultural knowledge
03. To be available, and physically resistant during
demanding working periods
04. To accept criticism from superiors and subordinates,
and consider and be able to respond in a
constructive manner
05. To have great respect for the work of subordinates,
ensuring that they always have good working
conditions, and have appropriate training to
continuously improve their level of knowledge
06. To be known inside and outside the company for the
rectitude of their character
07. To be highly demanding of themselves, be dedicated
to their work and to find the appropriate balance
between their personal and working lives
08. To have a rigorous code of conduct and ethical values
09. To accept the challenge of internal and external competition
10. To continuously search for excellence, which will be
achieved as a result of the cumulative impact of
good decisions taken over time.
Their publication gave the markets advanced warning as
to how Sonae would focus on the professionalism and
ethical behaviour of its staff.
In 1999, the Sonae Group Business Values and Principles
were defined, which evolved naturally from the ten
“guiding principles” for managers, to a set of values and
principles applicable to all employees and sub-holdings.
They are flexible enough to allow each sub-holding
the freedom to develop their own specific values and
principles related to their own business problems and
challenges. Working in several countries with different
cultures and different ways of conducting business is an
opportunity for our employees to broaden their mind set,
improve their understanding of different cultures, and
expand their professional and personal knowledge.
All the above needs to be achieved with a high level of
respect for people and the environment. This is why it is
so important to maintain a consistent set of values that
are visible in our past activities, so that we can be seen as
credible players when we decide to implement projects
with high levels of change, and which will have inevitable
consequences for our companies and our employees.
Sonae values and principles provide the foundation
for the policies, organisational processes and risk
management of the Group.
In 1993, Sonae presented its new logo designed to signify
the capability for growth and permanent innovation in
the group, and the energy, flow and synergies among all
its businesses. While the ring of fire is closed, signifying
“For a group of Sonae’s size operating in different countries and cultures [...] there is
often no way but to abide by our principles. Our Values and our Principles can be viewed
as the glue that keeps us together and guarantees our strength and common future.”
Belmiro de Azevedo, IV Top Managers’ Meeting – Sonae Sierra, December 2004
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Values and Principles
The Sonae Group, aware of its business and social responsibilities, and, regardless of
the countries where its companies are located, undertakes to respect the following
Values and Principles
Business Culture
Management
To accept as a basic principle of good management, the
duty of its directors to accept and welcome controls by
stakeholders whether they be shareholders, market and
financial analysts, suppliers, employees or customers.
Leadership
To develop skills that add value, enabling businesses to
attain positions of leadership in the markets where they
operate.
Willingness to change
To maintain, as a fundamental characteristic of the Group’s
culture, a permanent willingness to change.
Loyalty and control
To base daily management practice on the principles of
professionalism, loyalty, frugality, risk management, and
the adoption of management methods that swiftly detect
and correct adverse situations.
Transparency
To put into place procedures, which allow a true evaluation
to be made of business performance and degree of
compliance with Sonae values and principles, namely
by obtaining the opinion of employees and outside
observers.
Responsibility Towards Employees
Equal Treatment
To implement a Human Resources Management policy
that contains no form of discrimination on the grounds of
race, sex, religion, nationality or social class.
Professional Development
To offer high levels of satisfaction to all employees,
encouraging career development through access to
training and educational programmes.
Safety
To provide working conditions which avoid risks to the
health and safety of employees.
Community Responsibilities
Environmental Awareness
To constantly improve the environmental performance of
its products, processes and activities.
Community Involvement
To establish close ties with the community specifically
through co-operation and support to cultural, sport and
social institutions, in ways which are appropriate to each
case.
Openness to Society
To disclose information about internal projects and
activities targeted for employees, the media and the
general public, but obviously keeping certain information
confidential.
Trust
To develop relationships with business partners, namely
customers and suppliers, which are based on high
standards of trust.
Ethics
To establish relationships with third parties which
are based on principles of honesty, integrity, and
transparency. Any form of corruption even in a passive
way is unacceptable.
Independence from Political Power
Independence
To avoid financing political organisations and parties, as
well as avoiding involvement in party political questions.
However Sonae has the right to express itself publicly in
the way it sees fit, to defend its values and interests.
Co-operation
To adopt a position of independence in relation to central
and local government but with a willingness to co-operate
with government in many different ways, for example in
planning and executing development projects, whether
they are for infrastructure construction or new legislation.
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3.3.Managing New Risks:
Strategic and Operational
“In the same way as Environmental Management and Social Responsibility, Risk
Management is one of the components of the sustainable management of companies,
since it contributes towards the continuous development of businesses through a greater
knowledge and more effective management of the risks that can impact organisations.
- we must be attentive to new risks that are emerging. Their nature and the ways in
which they manifest themselves are quite clearly different from the so called “current”
risks. To name but a few of those areas producing New Risks, I would choose information
Technologies, Nano-Technology and Bio-Technology. We do not yet know the problems
that these areas will bring us, but there are already some impacts that go from physical
aspects through to ethical and moral issues.
It is a great challenge to examine risks that we do not yet know and are still to come,
since it is from them that new opportunities will arise, which I as a businessman am
interested in exploring.”
Belmiro de Azevedo, Managing Risk by Value Creation, Risk Management Forum, October 2005
For Sonae , Risk Management must be a par t of
management practice throughout the entire cycle
of the planning and management of the businesses,
from strategic to operational planning. It must also
be part of the daily management decision making
process, since knowledge and awareness of risk
contribute towards increasing the quality and security
of management actions.
We recognise risk management as a fundamental building
block of our approach, due on the one hand to its
strategic nature and on the other to its contribution
towards identifying new business opportunities, thus
involving the entire organisation and constituting yet
another factor of innovation and creativity.
Risk management aligns strategy, processes, people,
technologies and knowledge with the goal of identifying,
evaluating and managing the uncertainties and threats
that Sonae Group companies face.
A wide variety of activities are included, which vary in
importance according to the business areas involved.
As far as business activity risks are concerned, greater
importance is in some instances given to facilities and
people risks, while in others, risks concerning production
equipment and information systems technologies are
more important.
In those businesses with the highest public exposure
to financial markets, customers and the general public,
reputation and image risks take on great importance,
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Sonae SGPS, S.A. Sustainability Report 06
both those relating to the corporate image and those
concerned with protecting brand images of Group
companies. In this respect, special attention is given to
environmental risks, those relating to food and work place
safety, and also visitor safety (as is the case of shopping
centres and stores, which are visited by more than a
million customers each day).
In a management approach such as the one
implemented in the Sonae Group, internal and
external audits are extremely relevant as a part of
risk management and control processes. Internal
Audit is a management practice that exists since the
1980s. Our approach has developed over the years so
that today Internal Audit covers not only traditional
audits (financial and compliance) but also business
processes and information systems audits, based on
risk assessment, in line with international standards
and corporate governance codes.
The Sonae Group promotes Internal Audit and Risk
Management methodologies and seeks to follow
best international practices. As far as human resources
are concerned, Group companies sponsor a program
of training and updating of skills that includes the
international professional certifications of the IIA Institute of Internal Auditors, the Certified Internal Auditor
and Certification in Control Self Assessment, as well as
other certifications such as the Certified Information
Systems Auditor.
The Audit and Risk Management mission
To help companies reach their objectives via a systematic and structured approach to evaluate
and improve the effectiveness of risk management and control of business processes and
information systems.
Risk Management milestones
1984 - mds, insurance broker, was created with the objective
of managing the Sonae Group’s insurance and risk policy
throughout the world.
1996/1997 - Sonae re-organises all risk insurance agreements
in relation to group activities (nationally and internationally).
From this moment, Sonae insurance policy has been based on a
global strategic approach.
Since 1997 - Several Internal workshops are held with each
sub holding about safety risks and preventive measures. The
implementation of risk management processes begins.
1999 - Sonae Re, a captive reinsurance company, managed by
mds, was set up with the objective of managing the Group’s
insurable risks worldwide. This company is based in Luxemburg.
This globalisation of Sonae’s Risks implied a higher level of
understanding and disclosure of risk exposure and preventive
measures, concerning insurable risks such as fire, explosion etc.
1999 - Sonae reorganizes the Internal Audit function. In addition
to routine financial and compliance auditing, it starts to look at
audit risk in a broader, strategic manner. Sonae starts a one year
project in which internal audit is reorganised. Over a period of
one year, a major analysis of risk factors that could affect Sonae’s
businesses was carried out, based on interviews, questionnaires
and several workshops. The output of this project in 2000 was:
. Identification and evaluation of Group business risks
. Focus of Internal audit on risks associated with business
processes and information systems
. Set up of Audit and Risk Management functions in the holding
company and each sub holding
. Implementation of Risk Management and Information System
Audit activities
2000/2001 - Sonae felt it was important to develop methodologies
concerning risk management. It began a project in Portugal to build
them. The pilot project was implemented in Modelo Continente,
more specifically in Sport Zone stores. The methodology was tested
there, and then rolled out across the Group.
“Risk management is carried out with the goal of adding value, through the
management and control of uncertainties and threats that may impact the businesses
of Group companies on an ongoing basis, with a view to taking advantage of business
opportunities”.
Belmiro de Azevedo, Managing Risk by Value Creation, Risk Management Forum, October 2006
Sustainability Report 06 Sonae SGPS, S.A.
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We would emphasise that the Audit and Risk Management
department’s responsibilities are a consequence of the
Values and Principles that underpin the business strategy
of the Sonae Group. In practice, this involves the following
day to day activities:
. constant risk management and the search for new
management practices that are able to detect and
correct adverse situations promptly
. a set of practices that allow a systematic evaluation to
be made of the true performance of the businesses
and the level of compliance with the values and
principles of Sonae
. a work environment that minimises professional risks
and that promotes the health and safety of staff,
suppliers and other third parties
. a dialogue with national and international partners
that is guided by the principles of honesty, integrity
and transparency
Sonae Risk Management Process
Risk management is integrated into the Sonae planning
process and is based on the international standard
“Enterprise Risk Management - Integrated Framework”,
developed by COSO (Committee of Sponsoring
Organizations of the Treadway Commission). At Sonae, we
look at different levels of risk - strategic and operational
- and also at its different kinds: financial, operational,
technological, political, environmental, social, and
governance. During this process, we identify strategic
risks and opportunities that might impact our business
in the future and the likelihood of occurrence. Each subholding conducts an operational analysis and implements
appropriate actions related to the key issues identified.
Risk management is therefore an important part of our
Governance model, in relation to both statutory and nonstatutory bodies.
Enterprise Wide Risk Management Approach
1
Define and establish the
framework and
infrastructure of Risk
Management
2
Identify and evaluate
business risks
5
Monitor and report
on Risk Management
actions
6
Information
for decision making
4
Design and implement
Risk Management
actions
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Sonae SGPS, S.A. Sustainability Report 06
1
. Establish targets and objectives
. Define the organisation
. Define a common language
. Develop risk management tools and processes
. Make available facilitating resources (human,
financial)
2
. Identify risks
. Sources of risks (determine the “drivers” of the risks)
. Measure and assign priority to risks
. Establish the current risk map
. Determine the owner of the risk
3
. Determine risk tolerances and limits
. Define the goal risk map
. Determine the risk management strategy
(develop options to manage threats or take
advantage of opportunities: eliminate, reduce,
transfer, accept)
4
. Develop a risk management action plan
. Integrate the Risk Management plan into the
normal business planning cycle
5
. Monitor progress on executing the risk
management plan.
. Monitor changes in the risk profile
. Report on progress to risk owner, management
and the Board of Directors
3
Evaluate Risk
Management strategies
The table below summarises the kind of issues that can
influence our business, either directly or indirectly. In this
report, we will show examples of how each sub-holding
is responding to these risks. Others will be assessed and
managed as the likelihood of their occurrence, market
demand and our strategic approach develops.
Business Risk Model
Business Process Risks
External Risks
Financial Risks
. Interest rates
. Liquidity
. Financial market
fluctuations
Political and Regulatory Risks
Increasing EU legislation
regarding:
· Water pricing policies
· Energy pricing policies
· Insurance policies
· Environmental insurance
policies
· Increasing limitations of
access to raw materials
· Environmental Taxes
· New industry regulations
Environmental Risks1
. Climate change
. Water
. Energy
. CO22
. Waste
. Land Use
Operational Risks
· Customers satisfaction
· Service quality
· Brand image
· Pricing
· Supply chain
· Food safety
· Efficiency
· Customer and visitor safety
· Facility safety and security
· Business interruption
Integrity Risks
· Reputation
· Fraud
· Illegal behaviour
Human resources
· Outsourcing
· Retention
· Authority limits
· Leadership
· Adaptability to change
· Health and Safety
Information Technology Risks
· Availability
· Integrity
· Confidentiality
· Non-repudiation
· Relevance
Social Risks
Governance Risks
. Demographic change
. Change in consumer
needs
. Community relations
. Increasing importance
of Intangible and
traditionally non
financial information
for investors
Compliance Risks
· Legislation and contracts
· Internal Control policies and procedures
· Safety, Health and Environment policies
and procedures
Financial Risks
· Liquidity
· Credit
· Exchange rates
· Tax
· Financial information
· Planning and budget
1 Environmental Issues are becoming financial assets/liabilities, such as Water, Energy, Environmental insurance.
2 CO emissions: potential extension of Kyoto protocol to the transport sector.
2
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4. Commitments and Guidance
to the sub-holdings
Sonae SGPS as a holding company of a group of companies
and manager of a diversified portfolio of businesses
commits to continuously challenge all of its sub-holdings
in relation to the points set out below:
. To develop the concept of Risk Management in
relation to sustainability (environmental and social
aspects) and its application at an operational level.
. To progressively implement the use of key indicators
suggested by the Global Reporting Initiative.
. To create a set of sustainability key performance
indicators which are specific for each sub-holding,
identifying objectives and commitments.
. To recognise that the financial return on certain
projects relating to eco-efficiency may be small when
compared to other opportunities, but that in the long
term these returns are compensated by achieving
and being seen to achieve a complete integration
of sustainability issues into the business of each
company.
. To continue training programmes and actions so
that new management approaches and potential
opportunities can be identified.
. To develop specific training in the area of sustainability
and the way in which it can be linked to the core
business of each company.
. To encourage the implementation of even more
demanding safety policies in order to reduce work
accidents.
. To develop a culture of accident prevention through
changes in individual behaviour.
. To progressively implement systems that will permit
the measurement of direct and indirect CO2 emissions
from the activities of each business.
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5. Main sustainability milestones
at the Sonae Group
1985
Definition of the Ten “Guiding Principles” for Sonae’s managers.
1986
Contacto Programme
The Contacto Programme began, aimed at identifying
high potential University students.
1994
The environment as a factor of competitive
advantage
The Chairman of Sonae challenges the businesses to
become environmentally responsible, and develop this
aspect as a competitive advantage.
1999
Launch of the ECO2 XXI corporate programme
With the growth of Sonae’s portfolio to six sub-holdings
in 1999, a corporate structure was needed that could
promote synergies and integrated and harmonious
environmental management development in all Sonae
businesses. The Programme’s objective was to encourage
the implementation of eco-efficiency opportunities
across all Sonae businesses. It served as an effective driver
for the launch of consistent environmental management
actions, acting not only as a framework to solve existing
problems, but also to avoid potential liabilities. The name
of the Programme - Eco2 XXI - itself demonstrates Sonae’s
belief in reconciling economic growth with ecological
protection, as a guarantee for future sustainable business
development, this approach being a key strategic
direction for the XXI century.
1st Sonae annual environmental conference
1995
Launch of the “Projecto Horizonte”
“Projecto Horizonte” was Sonae’s first Group-wide
project, involving representatives from all businesses. The
objective was to strengthen environmental management
as an integral part of business management, as a factor of
differentiation and as a source of competitive advantage.
Membership of the WBCSD
Sonae is invited to become a founder member of the
World Business Council for Sustainable Development
(WBCSD). By accepting this invitation, Sonae committed
itself to active membership and participation in key
projects of the Council.
1996/1997
Sustainable Forestry
Sonae Indústria sponsors an independent study which
presented some proposals for the Strategic Plan for the
Sustainable Development of Forestry.
Implementation of “Projecto Horizonte” and
creation of the “Environmental Forum”
As a result of the “Projecto Horizonte”, the sub-holdings
began building their environmental management
structures. A need was felt to set up discussion groups
where environmental information, experiences and best
practices could be shared among the sub-holdings.
As a result, the “Forum Horizonte” (Wood Based Panels
business) and “Environmental Forum” (Retail and
Shopping Centres businesses only) were set up.
The conference brought together around one hundred of
Sonae’s top managers from the different business areas. It
was an excellent opportunity to present and discuss the
Eco2 XXI Programme and to inform participants about the
main environmental action plans in each business area, as
well as to share information on international trends and
experiences.
Principles and Values
Sonae Business Principles and Values are defined and
include sustainable development issues, governance,
respect for human rights and anti corruption practices.
2000
Sonae’s environmental policy and
environmental management system
The Sonae Board of Directors formally approved the
Group’s Environmental Policy and Environmental
Management System (EMS). The former makes clear
Sonae’s commitment to reconcile socio-economic
development with environmental protection, based on
the principles of eco-efficiency.
Environment Forum
Sonae broadened the Environment Forum, to include
for the first time Environmental Coordinators from all
sub-holdings. It was a platform for sharing information,
experiences and best practices across Group, and
for challenging the sub-holdings to take action on
environmental issues.
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Internal Audit reorganization and creation of Internal
Audit and Risk Management Departments in the holding
company and each sub-holding; set up of non-statutory
bodies of Audit Commission and Risk Management
Advisory Group.
2004
Sonae signs up to the United Nations Global Compact.
2005
Signature of the World Safety Declaration
2001
Sonae annual conference on eco-efficiency
125 group managers were present at this conference.
BCSD Portugal
Sonae became a founder member of the Business Council
for Sustainable Development Portugal, and was invited to
take on its presidency for the first three years.
1st Sonae Environmental Report issued for
the year 2000
In line with the commitment made in its
Environmental Policy, Sonae with this first
Environmental Report began a regular process of
public reporting on its plans and achievements
in relation to environmental management and
performance issues.
2002
Sonae annual conference on sustainable
development
175 managers from across the Group attended this annual
conference.
The Environmental Forum organised a series of
Workshops on Sustainable Development
Each sub-holding ran workshops to stimulate ideas that
could lead to specific actions. 59 managers from different
functional areas in various sub-holdings participated.
2003
2 Sonae environmental report issued for
the year 2002
nd
Sonae continues to report its progress on eco-eficiency
issues, by publishing a second environmental report . The
report included environmental indicators from each subholding.
2000 to 2004
Eco News
A quarterly environmental newsletter – Eco News – was
also published for distribution to all Group employees,
available both in print and on the Internet, designed to
increase environmental awareness and encourage best
practices.
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Sonae SGPS signed the World Safety Declaration, a
commitment to global workplace safety, at the DuPont
Leaders Forum for Safety and Performance in Geneva in
November 2005.
1st Corporate Responsibility Report from a
sub-holding
Sonae Sierra was the first company of the Group to
publish a Corporate Responsibility report related to
2004 activity. This sub-holding has produced an annual
report every year since then in order to respond to the
expectations of its principal stakeholders.
2005/2006
Sustainability Forum
Sonae broadened the focus of the Environment Forum
to embrace Sustainability with the same goal of sharing
information, experiences and best practices. Currently,
the objectives of this Forum are under review in order
to provide a vehicle for driving forward the Group’s
sustainability strategy and actions into the future.
2006
The conference “Sustainability - Perspectives and
Challenges” took place in Lisbon with around 250 Sonae
managers attending. The keynote speech was given by
Bjorn Stigson, President of the WBCSD.
2007
Sonae publishes the first Group Sustainability Report.
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6. Examples of Sustainability Strategy in
action in the sub-holdings
The Sonae Group is made up of different businesses,
subject to different exposures to the markets in which
they operate, distinct levels of competition, and various
levels of influence from their respective stakeholders,
which are also specific to each business. The result is that
the businesses are moving at different speeds in the way
in which they are incorporating environmental and social
issues into their management practice.
The following pages describe some examples of best
practice among our businesses. It is important to note
that there exist a broad range of actions, each of which
may be carried out by all sub-holdings, but which are
not all reported upon in this document. Here, a selection
of case studies that are most closely related to the main
impacts of each business, are described.
All sub-holdings, with the exception of Sonae Capital, will
be issuing their own sustainability reports in 2007, in which
readers can obtain more detailed information concerning
objectives, improvements and the commitments made
by each.
This is the first report of the Sonae Group, and as such, we
recognise that we still have a long way to go to incorporate
benchmark international standards and to identify and
collect relevant information for our stakeholders. This is a
challenge which we face with confidence.
6.1. Risk Management
The case studies below are a practical demonstration of
the manner in which the risk management methodology
described earlier has been applied in the Group, both on
a Group wide basis and in individual sub-holdings.
Sonae Group Risk Management transversal project - an example:
Emergency and Contingency Plan for Pandemic Flu Risk
. Launch of a Group wide project and specific projects in each sub-holding and main businesses
of the Group, with the goal of preparing and testing emergency and contingency plans to
respond to the threat of a flu pandemic.
. On going actions to identify critical processes and people in each business, assess pandemic flu
impacts and design action plans.
. Contacts with government departments and other health authorities, to share information and
knowledge about pandemic flu contingency plans and other collaboration.
. Contract specialist consulting services of a major international health and medical services
company to provide pandemic flu protocols and procedures and access to its web site.
. Acquisition of a quantity of antiviral, to maintain a preventive stock against a possible shortage
of supply in case of a pandemic flu outbreak.
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Modelo Continente
Managing Risks
Concerning the risk management activity, Modelo
Continente has developed a business risk evaluation
process from which was defined a matrix of company
risks ( BRM - Business Risk Model ).
Two practical examples of managing and controlling
risks in the company follow:
Physical Risk Control Self Assessment
In the Retail business, brand trust is fundamental: for
four consecutive years Modelo Continente has been
chosen as the most reliable brand in retail by Portuguese
consumers.
One of the most probable causes of damage to brand
image in relation to customers is a physical accident (e.g.
fire, structural collapse, flooding). Because of this, Modelo
Continente implemented a Physical Risk Control Self
Assessment project to reduce the probability and impact
of physical accidents in stores.
This project was carried out by the Risk Management
Department of Modelo Continente which built an
Intranet based application to support a Control Risk Self
Assessment (CRSA) process, in order to assess the current
level of physical risk exposure in stores.
All the requirements were identified internally by the Risk
Manager with support from the stores team. Based on
a list of issues that resulted from previous risks analyses
and international standards, a checklist was developed,
organized into the following four areas: Emergency, Fire,
Intrusion and Security Training.
As a result of the project’s implementation, the following
benefits resulted:
. Full coverage by stores (of which there are more than
400) of physical security risks, without the need to
increase staff levels.
. Assessment of the current level of physical risk
exposure faced by the company.
. Improvement in the risk management culture and
awareness.
. Development of action plans for each risk identified.
. Ranking and prioritization of follow-up audits based
on the higher risk stores identified.
. Identification of areas that need to be improved in a
particular store, a given region or all stores.
. In the longer term, as knowledge increases, it will be
possible to change the way that new stores are built
in order to avoid structural physical risks.
The project was “Highly Commended” in the category
of Most Effective Technology at the 2006 European
Risk Management Awards.
34
Sonae SGPS, S.A. Sustainability Report 06
Controlling the Quality and Safety of Food
Products
The quality and safety of products made available to
customers is obviously a key issue for Modelo Continente,
so that various measures have been implemented in the
company in order to control them.
As an example of what has been done in relation to quality
and safety in the food product area, Modelo Continente
developed and implemented a product Quality and
Safety Assurance System, through which the technical
quality teams from the food and perishable product areas
take actions in order to guarantee that products are made
available to customers in accordance with defined quality
and safety specifications.
These actions include among others, the preparation
of technical product specifications, the control of
documentation of origin, the quality control on delivery,
and laboratory analyses of products on sale.
The control of documentation of origin is an important
issue, since it allows products to be traced and identified
from production/pick up until delivery of the goods to
the company. In this documentation, hygiene guarantees
from the originator are also included, which are mandatory
by Portuguese law for certain types of products.
Also, laboratory tests are important to control the quality
and safety of products made available to customers.
Thus, Modelo Continente has been systematically
increasing the number of these tests. In 2006, 25,141
laboratory tests were carried out, of which 3,888 were
done by third party entities.
In order to support food Safety and Quality Control in
warehouses and stores, specific training and manuals
have been developed and distributed, which give clear
and objective guidelines to teams to control product
quality and safety.
Modelo Continente also carries out regular audits to
its sites and premises with the goal of systematically
monitoring food safety risks, ensuring compliance with
legislation and to the Company food safety manual.
Modelo Continente own branded goods do not
include Genetically Modified Organisms (GMOs)
In accordance with its precautionary policy against
possible environmental and food safety risks, Modelo
Continente`s own branded goods policy exclude GMOs,
whether in the product itself or in their composition.
Compliance with this policy is assured through specific
mandatory supplier contractual clauses.
Sonae Sierra
Sonae Sierra innovates in Health and Safety via
the PERSONÆ project.
The project involved an investment of more
than 6 million euros in consulting and training
services alone.
For Sonae Sierra, safety is one of the key risk factors and
a major area of concern at all levels and it is believed
that a culture of anticipation can minimise the number
of potential “accidents”. As a consequence of this, Sonae
Sierra launched the PERSONÆ project which aims to foster
a culture of anticipation in relation to safety, by integrating
safety concerns into the mindsets of employees and other
key stakeholders.
The first phase of implementation took place between
September 2004 and March 2006. In this phase, the focus
was put on actions in safety awareness and education. In
organisational terms, the start up also involved the set up of
a committee at Board level and working groups. The main
importance of the PERSONÆ project lies however in its
innovative approach compared to traditional safety systems,
particularly in relation to technical procedures and audits.
In its first two years, PERSONÆ has involved more than
11 thousand people among employees, tenants, and
suppliers in Sonae Sierra. Currently, Sonae Sierra’s
shopping centres and offices prepare documents,
seminars and workshops, conduct awareness visits to all
shops and premises, which also involve suppliers, and
correct non-conformance situations observed. Some
of these regular meetings with these stakeholders can
be about apparently simple attitudes, such as accident
prevention drills. The aim is to encourage tenants to make
this project an everyday work tool.
PERSONÆ is being successfully implemented in all of the
company’s shopping centres and offices, in Europe and Brazil.
The project won the Eco Award in 2006 in the “Corporate
Social Responsibility - Internal Public” category from Amcham
(American Chamber of Commerce), which was attended by
the former United States Vice President Al Gore.
Its progress is being carefully studied by other subholdings in the Group with a view to taking advantage of
potential synergies, and adapting the management model
to other Group businesses though the development of
the corporate Safety and Health function.
The third phase will start in September 2007, in which the
scope will be broadened to also include the million daily
visitors to centres in the dialogues that have been going
on with employees, suppliers and tenants. Sonae Sierra
aims to include all relevant stakeholders in this project.
Sonaecom
Sonaecom’s Business Continuity Program
Sonaecom has been implementing a Business Continuity
Management Program.
This Program has five main phases: (a) understanding
the business; (b) establishing recovery strategies; (c)
developing Contingency and Recovery Plans, coordinated
by an integrated Crisis Management plan; (d) establishing
a Business Continuity Culture; (e) testing, maintaining and
auditing the plans built.
Business Continuity Management Approach
. Business Impact Analysis
. Risk Assessment and Control
. Establish BCM Focus
Business
Understanding
. BCM Plans Exercising
. Teams and Systems Testing
. BCM Audit and Maintenance
Testing
and
Maintenance
Divulge and Implement program of:
. Education
. Awareness
. Training
. BCM Strategies Development
. Implementation Time and Cost Forecast
(Capex and Opex)
. Strategy Advantages / Disadvantages
Strategies
BCM
Programme
Management
Culture
Recovery Plans
The Sonaecom Program has a direct impact by providing a
phased and integrated response to different types of risk,
through the implementation of Emergency, Contingency and
Recovery Plans, coordinated by a Crisis Management Plan.
Two examples are the Information Systems Disaster
Recovery Plans, including the implementation of an
alternative data centre to support critical activities of
the mobile business, and the inclusion of the business
continuity requirements (redundancy) in the new
telecommunications network architecture planning.
36
Sonae SGPS, S.A. Sustainability Report 06
. Recovery Plans
. Crisis Management
. Sourcing (intra-organization and/or outsourcing
providers)
. Public Relations and the Media
Sonae Capital
Contacto (construction and engineering company
in Sonae Capital) implements an integrated safety,
environment and quality system
The construction sector has a number of very specific
features, distinguishing it from all other business sectors,
and is one with significant environmental impacts and
where a higher risk of work accidents exists. We believe
and are showing however that it is possible to counter this
situation by taking actions to alleviate these concerns by
the real and effective involvement of everyone involved
in construction works, building a culture of prevention,
safety and above all of responsibility. To that end, Contacto
has focused its actions on implementing proactive
preventive procedures, giving information and training
to all those involved in the production process. Training
sessions are given, particularly in the environmental,
safety and health areas, which involve not only company
employees but also sub contractor staff. All procedures
are formalised and in accordance with the requirements
of the Quality, Environment and Safety System which has
obtained international certification according to the NP
EN ISO 9001, NP EN ISO14001 e OHSAS 18001 standards.
6.2. Eco-Efficiency
Environmental awareness and the role of the Group holding company to encourage efforts to minimize consumption of
natural resources while maintaining or increasing output, have always been explicit in the Sonae values and principles.
The focus on eco-efficiency as good management and environmental practice has its origins in the group’s first business, the
manufacture of wood based panels, where measures were implemented to reduce the consumption of wood, and to increase the
use of wood waste as a raw material.
This concern with natural resource consumption was extended to other business areas, and a group wide project was
launched among all sub-holdings with the goal of increasing the level of integration of environmental management as
a factor of differentiation into the overall management of each business, and of creating a competitive advantage.
Each sub-holding began to build Environmental Management Systems (EMSs) and structures, while synergies and
experience sharing were encouraged through the Environmental Forum created for this purpose.
Many of the EMSs implemented in Group companies have won international certification, and systems continue to
be developed to quantify savings arising from eco-efficiency projects. This is a challenging area, often requiring the
recognition that returns on these investments will only be made in the longer term, but are those that can enable
companies to identify new approaches to management and new opportunities.
Extract from Sonae’s Environmental Policy
“...The Sonae Group is determined to follow a path leading to Sustainable Development. It will do so by
being pro-active in its work with the World Business Council for Sustainable Development, of which it is a full
member, and by implementing increasingly eco-efficient management systems within its own portfolio of
businesses....”
38
Sonae SGPS, S.A. Sustainability Report 06
Modelo Continente
Putting Eco-efficiency into practice at Modelo
Continente
Electricity Consumption, Transport of Goods and Waste
Disposal are the main environmental impacts of Modelo
Continente. This sub-holding has been implementing
practices and taking measures in these specific areas to
continuously increase the level of eco-efficiency from
its activities.
of management practices detailed in the “Energy
Management Manual”, and by continuous monitoring of
consumption.
Energy
Energy consumption on its premises, in particular
electrical energy, which in 2006 totalled 271 GWh, is
an issue to which Modelo Continente pays particular
attention, promoting a rational and eco-efficient use of
this resource.
Around 60 energy audits have been carried out, which
have led to the implementation of a wide range of
measures to rationalise consumption, as well as the use
of more efficient equipment, computerised systems for
managing consumption, the use of natural gas in baking
ovens, the use of skylights to access solar light, and the
use of hot fluids generated by air conditioning systems for
heating water, among others.
Some of the specific measures implemented include:
. replacing metallic iodide for fluorescent lamps
(7% reduction);
. changing conventional for electronic ballasts
(5% reduction);
. control of the pressure of condensation of refrigeration
gas in accordance with external temperatures
(4% reduction);
. installation of vertical and horizontal frozen food
storage cabinets with doors
(3% and 2% reductions respectively).
Thus, despite growing demand for energy consumption,
especially in the food sector, as a result of increases in the
cold storage areas, and improvements in thermal comfort
and store lighting, this has been offset by a number of
reduction measures implemented, by the adoption
Transport
The management of the truck fleet which delivers goods
to stores is carried out by modern and sophisticated
management software, which allows efficiency gains
to be made with a positive impact both in terms of
fuel consumption and of greenhouse gas emissions, in
particular CO2.
Also, the type of vehicle used is controlled, using vehicles that
are technologically and environmentally advanced, in order to
minimize fuel consumption and emissions of pollutants to the
atmosphere. All vehicles which entered service after 2003 are
equipped with engines that comply with the Euro3 or Euro4
standard, which define maximum levels of consumption
and air pollution emissions. Although these standards are
not mandatory by law, they are part of Modelo Continente’s
policy for the entire logistics fleet, controlled directly by
the company.
Number of crates transported per km
8
6
4
Energy consumption
(GWh per 1000 m2 of sales area)
4.76
5.13
5.73
2
0.56
0.54
0
0.55
0.52
2004
2006
CO2 Emissions per 1,000 crates transported
0.52
CO2(Kg)
200
0.5
2005
0.5
159
149
134
150
0.48
100
0.46
2004
2005
2006
2004
2005
2006
Sustainability Report 06 Sonae SGPS, S.A.
39
Waste
.Reduction
Reuse of Transport Packaging - The use of reusable
transport packaging is in specific circumstances, an
effective way of encouraging a reduction in waste
generation. Modelo Continente led the introduction
of the “Single Crate” into the supply chain of fruits
and vegetables in the retail sector in Portugal. The
“Single Crate” has Environmental Advantages, namely
in terms of optimising transport and reducing waste
generation. It is also made of recyclable plastic.
At the end of 2006, 181 fruit and vegetable suppliers were
using this new packaging, equal to the transport of an
average of 684 thousand crates each month along the
supply chain, an increase of 8% over 2005. The reusable
crates are also being used for the supply of meat and fish
to stores. In 2006, approximately 95% of meat and 70% of
fresh fish was being transported in these reusable crates.
Reuse of Coathangers - the company has an ongoing
programme of the collection of coathangers for
reuse. As part of the programme, Modelo Continente
collected 198 tons of coathangers in 2006.
.Recovery
In 2006, Modelo Continente generated 40,140 tons
of waste, of which 69% were recovered. Recycling
totalled 56% of waste generated.
Destination of waste generated
Recycling 56%
Recovery 69%
Incineration 11%
TOTAL
40,140 tons
Composting 2%
Landfill 31%
Sonae Sierra
Electricity and water consumption, and waste disposal are
three of the main environmental impacts of Sonae Sierra.
This sub-holding has been taking measures to reduce
consumption of electricity and to increase the level of
recycled waste resulting from its activities.
Water Consumption
Electricity Consumption
kWh / m2 (mall + toilet area)
755
litres / visit
748
2004
2005
563
4.2
3.6
2003
2004
4.3
4.2
2005
2006
not known
586
594
2002
2003
2006
2002
Note: For centres owned and co-owned, excluding tenants
Note: For centres owned and co-owned, excluding tenants
Sonae Sierra is a “Carbonfree - The Seal of Climate
Responsibility“ company, which means that it has made
a strong corporate commitment to address and reduce
climate change impacts.
Sonae Sierra develop its own Environmental
Standards for Retail Developments (ESRD) tool
For further details of the specific commitments involved
in this initiative see http://www.carbonfree.pt/ .
Recycling Rate
(% by weight)
19%
19%
21%
26%
31%
ESRD is an internet-based specification tool, developed
by Sonae Sierra to help Sonae Sierra Project Managers
and design teams to develop shopping centres that
comply with Sonae Sierra’ s environmental principles and
procedures. The tool’s principal aim is the implementation
of best environmental practice across all of Sierra’ s new
development and major refurbishment activities. A total
of 188 standards are included in ESRD covering energy,
water (effluent and use), waste, transport, indoor and
outdoor air quality, ecology, materials, etc. The standards
are the same in all countries, in which Sonae Sierra
develops Shopping Centres.
0%
2002
2003
2004
2005
Note: Total waste recycled as a proportion of waste produced
2006
Business Chain
Suppliers Construction Waste Recycling Indicator
(% of total waste sent for recycling or recovery)
90
86
Serra Shopping (2005)
. Eco-efficiency, through improved design and architecture
. Continuous improvement by regularly updating the
ESRD, thus ensuring that Sonae Sierra keeps up with
changes in best practices and technologies available.
Campo Limpo Shopping Centre in Brazil wins
ISO 14001 certification
62
LoureShopping (2005)
The two main principles that support the standards
included in ESRD are:
RioSul (2006)
Initially, this Project aimed at implementing an
environmental policy that would allow material costs
to be reduced and optimised. However, thanks to the
commitment of all those involved, including contracted
labour, suppliers, and management, this project was also
able to win ISO14001 certification for the construction
phase of the project.
Various measures were taken for its implementation:
An Environmental Policy was written in which the Campo
Sustainability Report 06 Sonae SGPS, S.A.
41
The architectural team, which followed up on the store
construction works, was given responsibility for the
environmental training and guidance of store tenants. The
engineer responsible for the manufacture and purchase
of materials carried out an environmental evaluation of
suppliers and service providers. And all those involved
had been informed of the Sonae Group environmental
policy and of the need to ensure that the services they
provided were optimized.
Limpo Shopping Centre recognises that its activity
has impacts on the environment, and that it has the
responsibility of being pro active in dealing with the
resulting challenges.
Processes involved in the construction of a shopping
centre were analysed and also the best ways of improving
them. From this analysis, procedures were proposed to
put into practice measures to minimize, mitigate and
prevent negative impacts that had been identified.
The greatest challenge found in the course of the
project was to get across to staff the importance of the
environment. Despite low educational levels of employees
in the construction sector, each employee was aware of
his/her contribution to the system. Security employees
at the entrance to the construction site are the first to
explain the company’s environmental policy to visitors by
giving them a brochure. Stonemasons know the measures
that they should take to avoid wastage of material and
water on site. Heavy equipment operators are responsible
for preventing soil and water contamination caused by
spillages of fuel and lubricating oils. Chemical product
operators are careful when handling these products
having studied information given in safety leaflets.
Objectives, goals and achievements resulting from the Environmental Policy of the Campo
Limpo Shopping Centre in Brazil
Objective
· Optimise use of natural resources
Goal
· Minimise use of water
· Minimise use of wood by 5%
Results
(to November 2006)
. 525,575 litres saved (through reuse of
water in foundation activities, use of
water table and rain water to control dust
in the atmosphere)
. The wood reutilisation rate was 48.5 %
· Minimise environmental impacts (pollution
prevention) through appropriate waste
management
42
. Recycle 20% of waste generated
· Minimise noise levels
. Restrict working hours next to the most
vulnerable neighbours to minimise the
inconvenience.
. Minimise atmospheric emissions (dust)
. Control atmospheric dust levels in relevant
activities
Sonae SGPS, S.A. Sustainability Report 06
. The recycling rate achieved in the period
was 39.2 %
. Reduction of two hours in noisy activities
next to a residential building, work
stopping at 20.00 instead of 22.00 hours.
Start and finishing times are monitored
daily.
. All dust generating activities are
controlled by humidifying the places
involved. Each week, photographs are
taken to record the procedure.
Composting Organic Waste
Arrábida Shopping
GaiaShopping
Initial investment in equipment: not available
Fixed Cost of Organic Treatment (equipment and transportation):
370€/month
Initial investment in equipment: 500 €
Fixed Cost of Organic Treatment (equipment and transportation):
370€/month
2006 Average Organic Waste production / month: 192 €/month
Expected Cost Savings/ Year: 2,137 €
2006 Average Organic Waste production / month: 714 €/month
Expected Cost Savings/ Year: 4,100 €
COMPOSTING ORGANIC WASTE
Following the success of NorteShopping’s segregation of waste organic matter, Sonae Sierra decided to extend
this project to other centres in Portugal, namely Arrábida Shopping, MaiaShopping and CascaiShopping in the
last quarter of 2005. In January 2006, the facilities were installed at GaiaShopping.
Each project starts with an analysis of the types of waste being produced, which lend themselves to composting.
Then, special containers are distributed to tenants, who segregate organic waste before delivering it to the
composting station.
With this initiative, Sonae Sierra has recovered about 620 tonnes of organic matter in Portugal, equal to 6% of
total waste produced in 2005, at the four centres where this separation process is in place.
In 2006 we recovered 1247 tonnes of organic matter, representing 11% of total waste produced in 2006 in 8 centres.
MaiaShopping
NorteShopping
Initial investment in equipment: 784 €
Fixed cost of Organic Treatment (equipment and transportation):
0€/month
Initial investment in equipment: 200 €
Fixed cost of Organic Treatment (equipment and transportation):
366 €/month
2006 Average Organic Waste production/ month: 210 €/month
Expected Cost Savings/ Year: 2,500 €
2006 Average Organic Waste production/month: 1,466 €/month
Expected Cost Savings/ Year: 13,200 €
Sustainability Report 06 Sonae SGPS, S.A.
43
Sonaecom
Improvements in electrical energy consumption
In 2006, 94% of electrical energy consumption was for
the mobile telecommunications network infrastructure,
Sonaecom is aware that it needs to tackle this area, but
it is proving to be very difficult since the infrastructure
is very disperse, and economically viable alternative
technologies do not yet exist.
Sonaecom installs and optimises Building
Management Systems (BMS)
Sonaecom installed BMS systems in Technical Buildings,
Data-Centres, Offices and Call Centres. These systems
make it possible to integrate and manage all equipment
in a building, leading to energy savings and control
over environmental conditions. All of these systems are
subject to constant evaluation and adjustment in order to
optimise the eco-efficiency of different systems, such as
air conditioning, power supply and lighting.
Changing lamps
The substitution of halogen lamps by energy saving ones
in Sonaecom’s retail shops led to a reduction of around
20% in energy costs, while maintenance costs will also be
reduced due to the longer life of these lamps.
lighting system functions, leading to savings of around
1,100 €/ and 16,500 kWh per month. As far as indirect
costs are concerned, Sonaecom has also managed to
reduce related maintenance and air conditioning costs of
the building.
Electrical and electronic equipment (EEE)
Waste Management
Optimus has different procedures to ensure the most
appropriate final destination for the equipment that it
sells, in accordance with the types of materials involved.
Mobile phones that are handed in by customers at retail
shops are sent to Fonebak PLC, an authorized waste and
recycling operator that is ISO 14001 certified and is also
EMAS registered as a specialist in the re-marketing of
equipment. Sonaecom uses outdoors, internet and other
communication media to inform consumers about the
offer of 10 € for each mobile phone that is handed in at
the time of purchase of a new one. Also, some electric
and electronic wastes generated at Technical Assistance
Centre facilities are being sent to an authorised Portuguese
waste and recycling operator.
Other measures also include the installation of presence
sensors, reflective film on glass windows, ceiling insulation,
the installation of skylights, shaded areas and energy
saving lights, among others.
Project Greenlight
In 2004, Sonaecom joined GreenLight, a voluntary
European
programme
(http://www.eu-greenlight.
org/) where public and private companies and other
organisations commit to improve the lighting of their
premises, always in cases in which the savings in energy
justify investments made. The installation of centralized
technical management systems as well as improvements
made in the Sonaecom headquarters as part of the
Greenlight project enabled direct energy consumption to
be reduced by 6% between 2005 and 2006.
This project was undertaken with the goal of improving
the lighting of the headquarters office building in
Matosinhos which has a surface area of 4,760 m2, in which
the following improvements were introduced:
Each year, Sonaecom collects an increasing number of
pieces of equipment in retail shops and sends them for
recycling at Fonebak PLC.
Equipment collected at retail shops
Units
80,000
60,000
58,000
50,000
40,000
35,000
20,000
0
. Installation of pre-timed pressure switches which
allow staff to light up areas where they wish to work
during hours in which the building’s main lighting has
been switched off.
. Integration of the building’s lighting into the Building
Management System. It allows the set up of time
zones for lighting according to the hours of use of
different areas and floors of the building.
With the improvements implemented, a considerable
reduction has been noted in the number of hours that the
44
Sonae SGPS, S.A. Sustainability Report 06
2004
2005
2006
The Electronic Invoice at Optimus
The electronic invoice - digital extract - launched by
Optimus in 2003, has allowed costs and related paper
consumption to be reduced by around 50%. This service
also includes an analysis programme tailored to the
specific needs of each customer, allowing more efficient
management of the budget that each customer sets for
telecommunications. The goal is to broaden the use of
this service to 90% of customers.
Sonae Capital
Troiaresort* - demolition work best practices
The urban and environmental improvement of the Troia
peninsula involved the demolition of 40% of previously
existing buildings, including two tower blocks.
Several measures were taken in relation to waste
management. The buildings to be demolished were
emptied of reusable material and equipment and, if
suitable, these were donated to charitable institutions.
Then, the buildings were stripped of all hazardous and
recyclable waste.
Since 98.5% of the total waste was made up of concrete
and ceramics, a recycling facility was installed on site
at Troia. The recycled material is being used in the
construction work of the Troiaresort as a base for roads
and for landscaping.
Destination of demolition waste
(by weight %)
1 0.5
98.5
Storage on site for later reuse
Sent off site for reuse / recycling
Landfill
Waste Management at Contacto Construções
Waste management at Contacto, a civil construction
company operating in Portugal and Spain, gives priority
to reuse and recycling. Some of the measures taken in this
area are:
. the reuse of construction and demolition waste coming
from the demolition of buildings and viaducts carried
out on a motorway widening project;
. the placing of “eco-points” in offices to separate plastic,
batteries, CDs, bulbs, toners and print cartridges;
. the setting aside in each construction site of an area
for separating waste including specific containers for
each type;
. the recycling of obsolete computer and electronic
equipment (specifically computers, mobile phones
and related accessories);
. the waterproofing and sealing of flooring in warehouses
containing dangerous waste on construction sites in
order to avoid soil contamination due to possible spillage;
. awareness and training actions to encourage the
correct separation of waste.
*Troiaresort - a tourism complex, comprising hotels, apartments,
villas, marina, casino, golf course and other leisure facilities under
development by Sonae, located between the Sado Estuary Nature
Reserve and the Serra da Arrábida Nature Park.
6.3. Business Chain
The Sonae Group has always sought to develop its businesses as an integral part of the communities in which it operates,
so that it can act as a stimulus towards creating wealth and improving living conditions throughout the value chain.
Sonae has given increasing importance to the way it relates to its suppliers and the kind of behaviour it expects from
them. We view all our suppliers as business partners, and as such, encourage them to develop their activities in a more
sustainable manner and implement management procedures which on a practical day to day basis comply with our
environmental and social standards. The examples that follow demonstrate this approach. By signing up to the Global
Compact, we have strengthened our commitment and recognise that, in view of our significant economic impact, we
can contribute positively towards our suppliers also gradually adopting these best practices.
Modelo Continente
Modelo Continente supports its suppliers
In line with Group policy described above, Modelo
Continente believes and takes a pro-active stance in
building mutually advantageous solutions, particularly
in the areas of logistical architecture, developing new
products and concepts, as well as sharing information,
thus enabling the company to continually improve its
value offer to customers.
Modelo Continente introduced into Portugal centralised
logistics and implemented best practices of ECR (Efficient
Consumer Response), which include the sharing of
information and joint management of product categories
with suppliers.
Supporting the sustained development of its suppliers can
take various forms. One important example has been its role
in the setup and development of the “Clube de Produtores”
46
Sonae SGPS, S.A. Sustainability Report 06
. “Clube de Produtores”
Modelo Continente set up the “Clube de Produtores”
(Producers’ Club) in 1998, as a support structure to
Portuguese livestock and agricultural production, which
aims both to guarantee a steady supply of agricultural
goods to hyper and supermarkets, and also to promote
national production. The strategic objectives of the
“Clube de Produtores” are therefore to promote national
agricultural production, cultivated in accordance with
the standards of quality and safety defined by Modelo
Continente. For the producers, it offers a consistent and
structured assistance to its members, while guaranteeing
a means of ensuring the sale of their production. Modelo
Continente invests in the training of the members of
the Club in various areas of livestock and agricultural
production, and also provides information concerning
market trends and consumer demands, so that the sector
gains competitiveness against a background of global
competition.
Sonae Sierra
The value of purchases by Modelo Continente in 2006 from
“Clube de Produtores” members was 87.5 million euro.
Activities of the Club:
. Technical support
. Participation in international trade fairs
. Protocols with the Institute of Agronomy, the Faculty
of Veterinary Medicine, the National Zoo-technical
Station among others
. Training actions
. Preparation of Programme Contracts in the fruit and
vegetables area
. International technical visits
Sonae Sierra’s engagement with their suppliers
By using the Environmental Standards for Retail
Developments (ESRD), Sonae Sierra has a tool which
means that shopping centre design teams must integrate
environmental issues starting from the design phase of
the project. In the construction phase, the companies
involved are also required to use Sierra’s Environmental
Management System (EMS) manual for sites under
development by Sonae Sierra. All steps possible are
taken to obtain international ISO 14001 certification for
all construction sites.
To help suppliers to meet the requirements of Sonae
Sierra’s EMS, we provide the following support:
Promoting more environmentally friendly
products
.“Protecção Integrada” (Integrated Protection)
With this initiative, Modelo Continente promotes the use
of natural organisms to combat crop pests, replacing
chemical pesticides, and the use of environmentally
friendly agricultural techniques. This is achieved by
making producers aware of these techniques, and by
several communication campaigns to promote these
products among our customers. Currently, all fruit and
vegetables bought from “Clube de Produtores” members
are produced under “Protecção Integrada”.
. Guidance and assistance to complete the necessary
documentation and to help them prepare for audits,
as well as undertaking internal compliance audits
. Environmental training programmes for designers
and contractors.
.Organic products
Organic products have arisen as a more environmentally
friendly and sustainable method of agriculture, and at the
same time safeguard intrinsic product qualities. However,
their price is recognised as being the main obstacle
inhibiting consumers. Modelo Continente is trying to
reverse this trend by promoting the consumption of
these products and encouraging the practice of this type
of agriculture through the “Clube de Produtores”.
Sonae Sierra carries out training sessions
with their tenants and service providers on
Environmental issues
In 2006, Sonae Sierra carried out 100 environmental
awareness and training sessions for tenants and service
providers, with the goal of providing basic knowledge
concerning the Sonae Sierra Environmental Management
System to third party company employees. Every year, the
proposed contents of the training are defined for each of
the Centres, bearing in mind the level of implementation
reached of the Environmental Management System and
the Environmental Certification Process. The contents
defined can include one or more of the following items:
. Environmental awareness meeting;
. ISO 14001 and Environmental Certification
. Thematic visits;
. Periodic meetings;
. Workshops.
Sustainability Report 06 Sonae SGPS, S.A.
47
Sonaecom
Sonaecom includes environmental clauses in
contracts with suppliers
In order to manage risks throughout its value chain,
Sonaecom includes clauses of an environmental nature
in supplier contracts to ensure that environmental
legislation and environmental factors, integrated into its
environmental management system, are complied with by
all of its suppliers. These clauses also state that Sonaecom
can carry out technical audits on the supplier’s premises
(of which 8 were conducted in 2006) to verify compliance
with its obligations and the guidelines of Sonaecom, or to
inspect any systems and equipment that have implications
for the environmental management of Sonaecom.
In order to ensure compliance with environment laws
and regulations, all Work Orders (requests for work issued
to Sonaecom’s suppliers) include specific information
concerning the environmental issues that are connected
to that type of work (e.g. air conditioning system gases,
lamps, oils, and other types of waste).
Innovation in Business Processes
Supplier management solutions, which include BizFact
and BizSuppliers, allow companies to implement simply
and cost effectively a process that makes financial
information available automatically to all Sonaecom
internal users and suppliers. The Suppliers’ Portal was
set up not only to allow suppliers to access their online
current accounts but also to reduce the need for
telephone contacts, and to eliminate the need to send
payment confirmation orders to suppliers. In addition
to increasing supplier satisfaction, there has been a
significant reduction in postal and stationery costs, and
employee time savings.
They can access the status of invoices being processed
in real time. The value of this project goes well beyond a
simple reduction in paper consumption, since it has led to
a fall of between 30 and 40% of costs associated with this
business process and an increase in productivity.
Sonaecom`s Sales Agents
Sonaecom’s sales agent network is a critical business
partner. The goal of having the best sales force in
the telecommunications sector led the company to
concentrate on and actively participate in three important
stages of sales agents’ careers: recruitment, training and
incentives.
Optimus Negócios, in the mobile phone business
segment, has strongly invested in redesigning agents’
recruitment plans since the beginning of 2006. Today,
two thirds of the recruitment needs for agents are met
directly by Optimus, which supervises the process.
“Escola de Negócios Pontos Fortes” was launched in July
2006, and is focused on developing the skills, increasing
the career life-cycle and tightening the relationship of
agents with Optimus. The target of this school is not only
sales people, but also administrative assistants and sales
team coordinators. In only 6 months, in 2006, 368 people
attended 69 courses. “Pontos Fortes” is also the name of
the incentives programme, in which agents earn points for
each sale made. These points can be traded in for prizes.
Points can also be earned by attending the Escola de
Negócios training courses. The objectives of this program
are to increase motivation and agents’ career life-cycles.
The average life-cycle of agents involved in this program
is twice that of other agent organisations.
“Escola de Vendas Optimus” is another example, focused
on the residential business, and taking action in Selection
& Recruitment programmes, Training, Motivation and
Performance Evaluation of the sales teams of our agents.
Its mission is to create selling and coaching skills to build a
strong commercial culture. In 2006, more than 60 agents
were recruited directly by Optimus and more than 60
training sessions were organised.
“Academia Novis” is another project aimed at reducing
the turnover of sales agents and improving selling and
leadership skills. With actions focused on Recruitment
and Selection, the challenge is to continuously improve
results through focusing on the quality of the service
provided through specialised, continuous professional
training of our partners, thus contributing directly to their
own business sustainability.
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Sonae SGPS, S.A. Sustainability Report 06
Sonae Capital
Troiaresort - integrating the environment into
the value chain
Environmental management is part of the entire value
chain at Troiaresort. In construction work, in addition
to compliance with legal requirements, sub contractors
must ensure that Environmental Follow Up plans are
implemented, which involves among other factors,
the identification of environmental aspects relating to
their activity, promoting measures that aim to minimise
the effect of any negative impacts, give environmental
training to construction workers, and measure and
monitor environmental performance.
Checking up on the implementation of Environmental
Follow-Up Plans by sub contractors is assured by
operational control visits and internal and external audits,
undertaken as part of the Troiaresort Environmental
Management System (EMS), which is certified according
to the international standard ISO 14001. The scope of the
EMS, a pioneer in this type of project, covers the design,
construction and operation of the resort.
Sustainability Report 06 Sonae SGPS, S.A.
49
6.4. Human Capital
Human capital has been a fundamental factor in the
growth of the Sonae Group. The Group’s values and
principles make a number of commitments towards
its employees by stating that it is responsible for
implementing a human resources policy which is
free from any kind of discrimination, for high levels of
satisfaction among employees, providing opportunities
for career development, training and education, and for
providing a safe work environment for its own and third
party employees.
In order to encourage staff to take an active part in the
planning of their personal and career goals and to align
them with corporate objectives, a procedure called “Career
Performance and Development Evaluation” is in place across
the Group. This procedure allows the employee’s personal
aspirations to be aligned with the goals of the company, and
increases the motivation and productivity of employees. An
induction and integration programme is given to all new
employees in most companies, the goal being to integrate
new staff into the company’s culture, thus ensuring that the
company’s code and principles are maintained
The goal of these commitments is to give the necessary
tools to staff to actively contribute towards the existence of
a culture of permanent innovation and entrepreneurship.
This vision led to the belief that the challenges and key
tasks for this most important asset of companies are to:
. find the right people for the right job
. put confidence in them
. empower them
. make them accountable and responsible.
A training policy is in place in the Group for all employees
at all levels. Training covers the technical, behavioural and
language areas. In the technical area, there has been a
significant increase in training relating to environmental,
health and safety issues. Sonae has also supported some
group managers to follow external post graduate and
doctorate studies
The main guidelines of the Human Resources Policy across all sub holdings are:
. Equal opportunities for all employees;
. Attracting the right people for the right jobs;
. Ensuring the development of skills and career progression;
. Guaranteeing efficient processes for performance management;
. Ethical behaviour in relation to staff, suppliers, the public in general and other entities
with whom we interact;
. Encouragement of behaviour based on ethical principles:
integrity, legal compliance, sustainability.
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Sonae SGPS, S.A. Sustainability Report 06
Management of our human resources is based on:
. The development of global training programmes to create skills in a variety of areas;
. A global Policy of Performance Management, based on performance evaluation criteria;
. Qualification of employees in accordance with their needs and those of the businesses.
Sustainability Report 06 Sonae SGPS, S.A.
51
“Learning is very important for people. At Sonae they have to learn and to be biased
towards learning. “
“Attracting good people might be the most important asset of Sonae.”
“At Sonae there is no prototype. We don’t believe in ‘pensé unique’, which has been very
much discussed in France and in Europe. We don’t believe in it. I do believe that we are
different people ... Take advantage of diversity. Take advantage of knowing more.
“ .. do everything to get well educated, train yourself and prepare yourself to be always in
the poll position for any new job or any new company. We don’t like to be in second place
... we want to be winners, and we have to take lots of poll positions.”
Belmiro de Azevedo, “Some Steps into the Future”. Sonae Indústria International Meeting
“Just as people need oxygen and proteins to survive, companies need a continuous
renewal of ideas and knowledge that are in the minds of their employees. Companies
have the duty to keep their knowledge updated and to pass it on to future generations.
But knowledge on its own is not enough. It is absolutely key to “KNOW HOW TO DO” but
it is also necessary to move on “TO DO”, permanently innovating in an environment of
sustainable and sustained growth”
Belmiro de Azevedo, Values and Principles, 40th anniversary of Sonae, 1999
The safety of all our employees as well as the general
public who use our premises is also an integral part of our
risk analysis and internal procedures. In addition to various
projects carried out by different sub-holdings, Sonae
SGPS signed the World Safety Declaration in November
2005, which:
. is a visible commitment by industry to improve safety
in the workplace
. establishes the right of everyone to a safe workplace
. affirms that industry will make real changes to reduce
accidents and injuries
. promotes collaboration between companies
. pledges to report challenges, progress and successes
within 3 years
. is a set of good management principles
Signatory companies are encouraged to cooperate in the
search for better safety solutions and report the results
of their efforts over the following three years at the XVIII
World Health and Safety Congress which will take place
in 2008.
Sonae takes on this public commitment in relation to all
of its stakeholders.
2005 World Safety Declaration
A Commitment to Global Workplace Safety
We:
Acknowledging that Safety is a fundamental component of quality of human life, a value to be upheld by individuals
and organizations,
Concerned that any lack of safety in the workplace and in the home carries with it a personal and social cost to
individuals, families, organizations, communities and ultimately nations and their security and standard of living,
Determined to address this vulnerability at the individual level and within our larger organizations and communities,
Affirming our ability to affect real-world change to achieve an attainable goal of increased safety and injury reduction,
Have agreed at the DuPont Leaders Forum On Safety and Performance held on November 17th, 2005 in
Geneva, Switzerland:
01. “Personal safety” as a human value transcends differences of geography, political affiliation, citizenship, ethnicity,
religious affiliation, occupation, age and gender. Personal safety is a universal construct that can be supported in
unique organizational and interpersonal ways.
02. Individuals and organizations have the right and a moral obligation to make a commitment to the improvement
of safety conditions in their lives, in their communities and in their organizations. They can improve the quality
of their own lives, and the lives of those who participate in larger social contexts (occupational, local, regional,
national, geographic) with a commitment to improve safety.
03. The enhancement of safety in the workplace and in the home is an achievable objective that can be defined,
evaluated and measured, despite differences of environment and setting.
04. The global nature of workplace and home safety calls for the broadest possible cooperation by all of industry.
05. The Organizations signing this Declaration, through its appropriate representative, today commit to reporting their
challenges, progress and successes at the XVIIIth World Congress on Safety and Health at Work in 2008.
IN WITNESS WHEREOF the undersigned, being duly authorized to that effect, have signed this Commitment.
DONE at Geneva, Switzerland this seventeenth day of November, two thousand and five.
Signed by Belmiro de Azevedo, Chairman of the Sonae Group
Sustainability Report 06 Sonae SGPS, S.A.
53
Modelo Continente
Sonae Sierra
With more than 25,000 employees at the end of 2006,
Modelo Continente is aware of the importance of its
Human Capital for the good performance of the company,
as well as its contribution towards the sustained creation
of employment locally, regionally and nationally.
Ergonomic standards during 2007
The company places great value on its employees,
following policies of non discrimination, those that
encourage career development based on demonstrated
merit, while giving them permanent access to training
programmes and providing a secure, safe and motivating
workplace which encourages the performance level
needed for the duties of all staff.
In 2006, a total of 1,050,955 training hours were given.
The good social climate existing in the company, which is
confirmed by the results of surveys carried out regularly among
all employees, is a reflection of the good practices undertaken
by Modelo Continente in the area of labour relations.
Environmental and Sustainable Development
Training
The environmental and sustainable development training
programme at Modelo Continente is integrated into:
. The Company’s Management Course and into the
Trainee Management Programme, which involves all
store supervisors.
. Environmental training given to supervisory teams at
the time of opening of new food stores.
. Environmental training given as part of certification
processes of stores and warehouses.
In 2006, environmental and sustainable development
training involved 1,309 employees (3,650 hours).
Hygiene, Health and Safety at Work
Modelo Continente, in accordance with the Group’s H&S
management policy, has a constant concern for the work
and health conditions of its employees, with several
ongoing projects involving preventive actions. Through
its Medical Centres and Hygiene and Safety service, the
company has progressively increased its involvement
in relation to Prevention of Work Accidents and Health
matters. During 2006:
. 637 audits were carried out.
. 160 emergency drills were carried out, the goal
being to put emergency plans to the test, as well as
emergency support teams.
. 80,000 hours of training were given at work stations.
In Food retail stores, a coordinator for Hygiene and Work
Safety was appointed. In 2006, a coordinator was also
appointed for the non food retail area.
In warehouses, a programme of gym at work has been
implemented, the goal being to improve the body
posture of operators.
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Sonae SGPS, S.A. Sustainability Report 06
During 2005, Sonae Sierra launched a new project aimed
at developing and gradually implementing best practice
ergonomic standards across all its relevant activities.
The need arose in recognition of the wide ranging
environments in which staff work - ranging from Head
Office to centre management office staff and security
control room employees. Overseen by a cross-functional
Working Group made up of both staff and external
experts, the standards will include the following issues:
. Lighting levels and controls
. Noise levels
. Space requirements
. Furniture (desks and chairs)
. Furnishings (carpets and paint)
. IT equipment and accessories
In 2006, 427 jobs were analysed in Portugal, and this work
will be extended to Spain in 2007. These reviews involve
the study of design, construction, and also the specific
tasks of the employee, together with a personal interview
to verify existing needs and the gaps which exist in relation
to defined standards. On the basis of the findings, Sonae
Sierra will implement a long term action plan to address
issues of non-compliance. At the same time, Sierra’s aim is
to embed the ergonomic standards into standard safety
and health procedures to be complied with at all sites and
offices in all countries where the company operates.
Sonae Sierra uses Chronos - a learning tool
from the WBCSD - to give training to around
700 employees on sustainability
At the end of 2006, Sonae Sierra began a programme
of training in Chronos, a tool developed by the WBCSD,
aimed at transmitting in a simple, interactive and realistic
way, the essential issues that sustainable development
involves, giving particular attention to the role of the
private sector in the entire process. The Chronos training
programme was adapted to the specific requirements of
Sonae Sierra and delivered to all its staff in all countries of
operation via CD-ROMs.
In 2006, during a series of information sessions led by
Sierra employees, the contents of the CD ROMs were
discussed interactively with a total of 528 employees
(285 employees in Portugal, 82 in Spain, 29 in Italy, 24 in
Germany, 22 in Greece, 4 in Holland and 82 in Brazil).
Sonaecom
Training as a strategy
The mission of the Sonaecom Learning Centre (SCLC) is to
contribute towards creating an environment that develops
career potential, as well as developing and consolidating
the skills of Sonaecom Managers, which are essential for
business development.
SCLC aims to include all employees, so that various
programmes exist aimed at different stages of career
development. Learning courses cover people, strategic
and project management, as well as other critical areas
for business development, such as marketing, negotiation
and interpersonal skills. Partnerships established with
leading Portuguese universities guarantee not only that
the subjects covered are up-to-date, but also that greater
credibility is given to the training provided. Partnerships
are in place with the following Universities: EGP - Escola
de Gestão do Porto (Porto School of Management), UCP
- Faculdade de Ciências Económicas e Empresariais da
Universidade Católica Portuguesa de Lisboa (School of
Business Studies at the Portuguese Catholic University in
Lisbon) and AESE - Escola de Direcção e Negócios (School
of Management and Business).
Since its launch in January 2005, the SCLC has been
enthusiastically received by employees, who have
repeatedly confirmed the interest of contents, as well
as the importance of training for career development.
Up to the end of 2006, 19 different training courses had
been given, involving 450 employees and 25,600 training
hours.
Sonaecom’s Code of Conduct
dissemination of information, and through them,
influencing behaviour and attitudes, engaging employees
in company strategy and goals.
Building awareness of Corporate Responsibility among
employees has been one of the main challenges over the
last few years. To achieve this, Sonaecom has implemented
several internal initiatives, such as Internal campaigns,
“Give a hand to the environment“ (water and energy
consumption reduction, paper recycling campaign, waste
differentiation campaign), “Ideas contest “ (to encourage
discussion and implementation of eco-efficiency ideas
among all employees) and “Gil Day” (to promote the
collection and reuse of toners and ink cartridges). In
August 2006, an issue of the Sonaecom internal magazine
- BOOM - was dedicated to Corporate Responsibility and
several other articles concerning Corporate Responsibility
appeared regularly to inform and create awareness among
employees. Sonaecom has an internal e-letter called Ecoreport to increase knowledge concerning the Sonaecom
Environmental Management System. We are also actively
involved in external initiatives such as campaigns to
collect clothes, working with the Red Cross, and blood
and bone marrow donations, etc.
Through its Code of Conduct, Sonaecom promotes
and encourages behavioural rules and principles to
be observed by members of statutory entities and all
employees, thus contributing towards ensuring ethical
behaviour throughout the organisation. As part of
this Code, Sonaecom has set up an Ethics Committee,
whose responsibilities include ensuring that any doubts
by stakeholders are clarified, and reporting and dealing
with situations that involve any violation of the Code. The
Code covers issues ranging from integrity, transparency,
respect, social responsibility, environmental commitment,
health and safety, confidentiality and use of privileged
information, to the management of conflicts of interest,
and communicating irregularities in relationships with
Customers, Suppliers, Competition, Public Authorities,
Shareholders, Market, the Community, the Environment,
and Staff.
Corporate Responsibility Awareness Campaigns
Aware of the importance of Internal Communication
to disseminate the corporate culture throughout the
organization, Sonaecom is using various communication
channels and tools aimed at providing effective
Sustainability Report 06 Sonae SGPS, S.A.
55
6.5. Stakeholder Dialogue
The Sonae Group has always taken into account the global and regional context in which its businesses operate, so that
its management can respond to the evolving and changing needs of its stakeholders.
Over the last few centuries, western society has grown more educated, while we have witnessed the transformation
of a land, work and capital based society into one which develops and innovates, based on knowledge and capital. In
the same period, and as part of this trend, Non Profit Making Organisations have come to play an important and active
role in civil society, in particular in private sector activities in relation to human and social rights, and the protection of
natural resources.
This movement was at the origin of a new paradigm for society, in which business must deliver to society not only
financial returns, but considerably more, in order to contribute towards social cohesion, environmental protection and
global sustainability.
It is in this context of understanding the expectations of our various stakeholders, identifying the factors that are
relevant for them and thus identifying new approaches and new business opportunities, that Group companies have
built relationships with their principal stakeholders. The following are examples of how methodologies have been
developed and put into practice to achieve this.
Modelo Continente
Modelo Continente cares for, listens to and
communicates with thousands of consumers
and suppliers
Modelo Continente, is in contact with thousands of
consumers every day in its stores and with hundreds of
suppliers, and has to take on extra responsibility for the
way in which it interacts with the communities in which
it operates. Modelo Continente has thus given special
attention to its relationships with customers and suppliers,
and in its contacts with the community through various
forms of support and good practice, as demonstrated by
the following summary.
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Sonae SGPS, S.A. Sustainability Report 06
Stakeholders
Dialogue
Customers
Interacting every day with thousands of customers, a process which in itself provides a constant
and useful dialogue, Modelo Continente uses various means and methodologies for consulting
its customers and the communities close to its stores, the goal being to systematically improve
the services provided and their value proposal.
2.4 million/week
3,090 million € / year 2006
Employees
25,255 (end 2006)
337 million € / year 2006
100,000 customers are listened each year.
The company also has a structured procedure for managing suggestions and complaints,
through which it interacts directly with the customer, allowing the service provided and value
proposal to be adjusted.
Periodically, Company Social Climate surveys are carried out, covering all employees, allowing
opinions concerning the company, their work, and the work atmosphere. The last survey
carried out showed that more than 70% of staff felt secure in the company, and that more than
78% intended to continue working at Modelo Continente.
An internal magazine called “Correio da Distribuição” is periodically issued with varied and
relevant internal and external information.
Availability of an Employee Portal on the Internet “Portal do Colaborador”, where all
employees can access a variety of information according to their interests such as career
opportunities, training, organisational and labour/legal information, among others.
Suppliers
3,500 (year average)
2,720 million € / year 2006
Community
Community investments 5.9 million € / year 2006
Day to day relationships with suppliers including relevant information sharing support the
growth of the business. The Company set up the Suppliers Portal on the Internet, enabling
information sharing and improvement in the interface between Modelo Continente and
Suppliers.
There is a constant focus on developing partnerships to implement new projects/products,
which can bring improvements concerning the expectations/needs of consumers and the
general public.
Development and implementation of a wide number of initiatives actively involving the
community.
- of a social nature (involving local communities: in actions aiming at supporting institutions
giving health care and/or support to underprivileged groups; and in actions to promote
cultural and sporting events);
- of an environmental nature (promoting awareness and improvement in the attitude/actions
of the community concerning environmental and sustainable development issues).
Cooperation with municipalities and other local or regional government entities.
Periodic and timely information about relevant facts concerning the company, ensuring equal
treatment to all investor and financial stakeholders.
Investors
Dividends 55 million € (paid 2006)
Availability of a website, publication of the company’s annual report and accounts, periodic
earnings announcements, and relevant Corporate Presentations.
Investor Support Office, which is a department with the technical resources required to
respond to specific requests from investors, the University community, and national and
international retail sector analysts.
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57
Sonae Sierra
Sonae Sierra has been working on a structured
stakeholder dialogue based on international
best practice recommendations, such as the
voluntary AA1000 standard, in order to identify
and engage with its stakeholders
Sonae Sierra questioned their internal and external
stakeholders about its Environmental and Social Risks
and Opportunities
58
Important Stakeholder Groups
Methods and outcomes of engagement in 2006
Investors and Financial Analysts
Regular meetings, presentations, and published quarterly financial reports to communicate
Sierra’s financial performance and risk management practices.
Employees
Corporate-wide and country specific communications, including printed employee magazine
(Horizons) and intranet news. Performance evaluation plans and access to HR support.
Staff have been individually consulted on specific issues (e.g. Safety & Health), and several
schemes were introduced to stimulate ideas and reward innovative suggestions for new ways
of working.
Tenants
Specific intranet site Sierracentres,network. Meetings and training sessions, with a strong focus in
2006 on Safety & Health and Environmental management.
Suppliers
In 2006, a survey was carried out aimed at getting feedback from suppliers about Sierra’s CR
practices and to evaluate their own CR policies. Questionnaires were sent to a number of Sonae
Sierra’s largest Portuguese, Spanish and Italian suppliers.
Visitors
Visitor surveys are conducted in all our owned and co-owned centres. Visitor surveys undertaken
at three of our largest centres in Portugal found that 69% of visitors considered our centres to be
concerned about environmental protection.
Government Authorities
Engagement with all municipalities, local and regional bodies, as part of the planning and
development process. Particularly close relationships with specific entities such as the police
and emergency services.
Local Communities
Developed qualitative studies to assess the impact of the construction phase of centres on
local communities and identify potential improvements. Geotracking surveys are undertaken
in managed centres to analyse the impact of the shopping centre on residents and consumer
demand patterns in the local area.
Media
In 2006, Sonae Sierra received a total of 1,309 cases of CR-related press coverage. Of these,
84% were positive, and 16% were negative and related mainly to social issues (e.g. in Portugal,
complaints from tenants employees about their employment conditions). In regard to
environmental issues, a total of 142 cases of positive press coverage were received, compared
to 33 negative cases concerning this aspect of Sierra’s performance.
Sonae SGPS, S.A. Sustainability Report 06
Concern about energy is today the biggest environmental
issue. All environmental factors are expected to become
more important over time, according to Tenants.
Main results of the research carried out in 2006 concerning the greatest risks and opportunities for Sonae Sierra
Stakeholder
Issue
Greatest Risks & Opportunities
Tenants and External Stakeholders
Economic
Business Strategy and planning
Business Ethics
Financial Impact on key stakeholders
Local Economic Benefits
Social
Visitor Satisfaction
Tenant Satisfaction
Community Care
Safety and Health
Qualitative phone interviews with 39 external stakeholders
Environmental
Land Use
Energy Consumption
Transport
Waste Production
Emissions to air, land and water
Employees
Economic
Business Strategy and planning
Business Ethics
Financial Impact on key stakeholders
Corporate Governance and Risk Management
Social
Visitor Satisfaction
Tenant Satisfaction
Community Care
Employee Relations
Environmental
Energy Consumption
Emissions to air, land and water
Waste Production
Land Use
Quantitative research with 45 tenants in 6 countries
Web-based research with 545 employees, across all 6 countries
where Sonae Sierra operates (Portugal, Spain, Italy, Germany,
Greece and Brazil)
Sustainability Report 06 Sonae SGPS, S.A.
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Sonaecom
Stakeholder and issue analysis
Sonaecom carried out an internal consultative exercise,
the main aim of which was to actively involve most
of group management in sustainability strategy and
reporting activities. Representatives from corporate
areas and from the group’s companies participated and
contributed towards identifying relevant stakeholders,
the main sustainability issues, and decided on the main
areas for action.
Two internal workshops, held in September 2006 and
January 2007, were part of these activities, consolidating
Sonaecom’s approach to sustainability and establishing
action plans. As a result, Sonaecom identified eight
relevant stakeholder “families” with each family containing
a long list of stakeholders, as illustrated in the box above.
Composition of Sonaecom Stakeholder Families
Financial Entities
. Banks
. Analysts
. Shareholders and Investors
Employees
. Permanent Employees
. Short-term contracts
. Temporary Employees
. Trainees
. Outsourcing
. Internal Consultants
Regulatory and Governmental Entities
. ANACOM - Telco regulator
. Competition Authority
. European Union
. CMVM - Securities Market Commission
. Legal courts
. Government
Community
. Immigrants
. Population living close to antennae
. Special needs associations
. Media
. Opinion Leaders & Makers
. Scientific Community
. NGOs
. Police and Firefighters
. Information Illiterates
Clients and Prospective Clients
. Corporate
. Small and Medium Enterprises (SME)
. Public Administration
. SOHO
. Residential
. Senior citizens
Suppliers
. Handsets
. Outsourcing
. Network Infrastructure
. Network Equipment
. IT Infrastructure
. Printing
. Content providers
. Mktg agencies
Business partners
. Sales Channels
. France Telecom
. Technology providers
. Media providers
Industry
. Competitors
. Sector Associations
The relevant sustainability issues consolidated during the
internal consultation process were then clustered into ten issue
groups. The issue clustering allowed Sonaecom to identify the
issues of interest for two or more stakeholder families.
60
Internal
.
.
.
.
.
External
Issue Groups
Human resources.
Corporate Governance
Compliance with legislation and rules
Health and Safety
Environmental Management and Practices
. Trustworthy information concerning economic / financial
management practices and results
· External communication regarding sustainabillity practices
and results
· Digital inclusion & responsible products / services
· Calamities and disaster management support
. Partnership
Sonae SGPS, S.A. Sustainability Report 06
Social Climate Survey
The opinions of Sonaecom’s employees are critical and
provide extensive feedback on what is important to
change and implement in the organisation. In 2006,
Sonaecom repeated its employee satisfaction survey,
which has helped to guide the implementation of a
number of initiatives, the results of which provide the
drivers of Human Resources management policies, which
will further increase satisfaction levels among employees.
In this third survey, 1,466 employees took part out of a
total of 1,997 or 73%, up 4.41% on 2005.
Sonae Capital
Troiaresort – relationships with stakeholders
From the time that the Troiaresort concept was defined,
the developer has established communication channels
with different stakeholders, in particular, public authorities,
NGOs, students and the general public.
The Strategic Environmental Assessment carried out by
IMAR – the Maritime Research Institute, was one of the
factors that contributed towards developing the design
of Troiaresort. The developer, designers and consultants,
particularly in the environmental area, worked together
interactively with the fundamental goal of integrating
the environmental component into the different projects
making up the Troiaresort.
Initially, these studies focused on the urban plan, which
defined the main restrictions imposed on the Project
and which guided the development of the resort
concept. Later, different environmental impact studies
were carried out, some of which are still underway,
that evaluated the land use at the detailed planning
level. Lastly, the Environmental Management System of
Troiaresort was implemented.
Due to the media interest generated by the Troiaresort
project, Sonae Turismo is frequently contacted by
different stakeholders. Since 2000, 45 requests were
received concerning environmental information, 69% of
which came from universities and research institutions.
All of these requests were answered.
6.6. Community Involvement
Sonae believes that it can make a contribution towards helping to solve social problems that are part of the society in
which it operates. Such activities are undertaken both by the Belmiro de Azevedo Foundation and also directly by the
sub-holdings of the Group, in accordance with the identified needs related to their operations.
Through active dialogue with local organisations and continued investment, we seek to support and improve local
community facilities, services and cultural events. Each sub-holding tries to identify the linkages between its core
business and the needs of the community, in order to implement projects and activities that are mutually beneficial.
Across the entire Group, companies have become involved with the community through a range of initiatives spread
across the areas of health, culture and the environment. Many of these actions have become projects with a nationwide
profile in Portugal such as Mission Smile of Modelo Continente. Others are being operated on a daily basis by various
companies, and even if they have less media attention, their real importance lies in their capacity to bring something
new and positive both to those participating and to those who are receiving support.
Modelo Continente
Modelo Continente cares for and is heavily
involved in the community
Involvement with and support for the community, good
citizenship and social cohesion, have always been part
of Modelo Continente’s way of doing business. A wide
range of initiatives that have been carried out over the
years clearly demonstrate this, in such varied areas as
health, education, culture, sport, the environment and
educational activities. Some of these are next described:
“Missão Sorriso”
Support to:
Portuguese Skin Cancer Association
Portuguese Cardiology Foundation
Women’ s Race
Schools
Support Program
Health
Sport Zone’s
Fathers’ Day Race
Education
Sport
“Unite to Smile”
Race
Computers
for Schools
COMMUNITY
INVOLVEMENT
Batteries
for Books
Culture
Environment
Shopping bags
with 3 colours
of recycling
Entertainment
Activities
Leopoldina Musical
Modelo Christmas
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My 1st Best Seller
Modelo
Theatre Nights
.Through “Missão Sorriso” (Mission Smile), Modelo
Continente helped to equip 25 paediatric units
By selling Leopoldina children’s books and CDs in all Modelo
Continente stores, funds are raised that are then used to
buy medical/scientific, educational and entertainment
equipment for paediatric units in hospitals that are within
the catchments areas of these Hypermarkets. Between
2003 and 2006, “Missão Sorriso” raised more than 2 million
Euro to support 25 paediatric units and hospitals with
more than 400 items of equipment donated.
.Modelo Continente involves 680 thousand
schoolchildren in projects that link reading to the
environment
“Pilhas de Livros” (Batteries for Books) is an initiative aimed
at schools with children between the ages of 3 and 15.
The aim is to encourage recycling of used batteries, while
at the same time promoting the pleasure of reading by
offering books to school libraries. This initiative, launched
in 2004 and repeated every year since, has allowed more
than 12 million used batteries to be collected during
this time. In 2006, 5,600 schools and more than 680,000
schoolchildren took part, and around 30,000 books were
donated to schools.
. Modelo Continente encourages new authors
“My 1st Best Seller” is a competition promoted by Modelo
Continente with the aim of discovering new literary talent
in Portugal. It is open to anyone who has not yet published a book. The winner has his/her book published and
sold in Modelo Continente stores.
.Modelo Continente gives the opportunity to the more
isolated regions of Portugal to have access to theatre
Given that culture has a relevant impact on the
development of society, Modelo Continente supports
access to the theatre for the populations in the more
isolated areas of Portugal. The “Noites de Teatro
Modelo” (Modelo Theatre Nights) bring culture to
these communities through theatrical performances
specifically created to be performed outside, travelling
throughout the country and free for everyone. In 2006,
performances took place in more than 70 locations, with
55,000 spectators participating.
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63
Sonae Sierra
Sonaecom
Sonae Sierra has a strong interaction with the
community in countries in which it operates.
Some examples are:
Sonaecom clarifies doubts about
electromagnetic fields
Fund Raising
“Ajuda de Berço” in Portugal
This association continues to play an active role in
supporting pregnant women in financial difficulties
and for children between the ages of 0 and 3. Donations
were collected totalling € 32,190.
Gil Campaign in Portugal
Gil mascots raised funds for the setting up of Home
Support Units. Donations totalling € 63,500 were
collected.
Environmental and Safety Education
Environmental Education at Tivoli Shopping in Brazil
In April 2006, Tivoli Shopping launched the project
“Awareness through art: portraying the environment
with the eyes of an investigator” with the objective of
raising awareness among children, teenagers and adults
about environmental concerns and in particular the
conservation of water resources. The project welcomed
around 100 students.
Dos Mares Shopping Centre in Spain
Sonae Sierra, organised training for 2,000 children
covering the environment and safety. During a guided
visit, the school children were given training about
waste separation and recycling, basic rules of the road,
emergency exits, information points, escalators and
Safety & Health. This is an on going action in Dos Mares,
and is being replicated in many other shopping centres
of Sonae Sierra’s portfolio, including Brazil.
Optimus is supporting a project called monIT, together with
other operators and the Portuguese Telecommunications
Institute. Its objective is to provide relevant information
about Electro Magnetic Fields (EMF) associated with mobile
communications and the general public, such as:
1)Basic concepts related to electromagnetic waves, known
exposure limits, bibliography, relevant references, etc.
2)Results of measurements carried out by the project
team in areas close to base station aerials, in public
locations all over the Country.
To view more information, please consult:
http://www.lx.it.pt/monit/
The general public has available information from a
competent and credible source, which is also the biggest
specialist in this area in Portugal.
Sonaecom keeps abreast with the latest available scientific
results and developments to clarify any questions raised
on this matter.
EMF - Requests for information
30
29
25
20
19
19
15
14
10
5
0
2003
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2004
2005
2006
During 2006, we received 14 requests for information
on the subject: 10 reports were prepared and sent to
people living close to antennae, in 6 of which we included
measurements made in the locations involved, while we
gave clarification directly to 4 people who telephoned
the call centre.
Smile
One of the corner stones of the company’s social
contribution is its involvement with the community
through Smile, Sonaecom’s Voluntary Team. Since its
inception in December 2004, around 22% of employees
of Sonaecom companies have taken part in voluntary
activities which cover initiatives in a wide range of areas
(solidarity, health, support to handicapped people,
and child support). Smile carries out these activities all
year round, through a series of on going activities such
as support to schools, hospitalized children, and old
people’s homes, and also awareness events such as blood
donations, bone marrow collects and good environmental
practices. Among the institutions with which Sonaecom
has already worked, are “Aldeias SOS”, the “Legião da
Boa Vontade”, “Acreditar”, “Obra do Frei Gil”, “Casa do
Caminho”, “Ajuda de Mãe” and the “Red Cross”, among
others. In 2006, involvement in Smile was broadened to
include members of employees’ families.
members of the children involved. The project, which will
last for two years, is carried out by jointly implementing
infrastructures (multimedia computers with broadband
Internet connection), and leisure and training contents
(leisure and training solutions for hospitalised children
and specific training for hospital technicians and family
members). The latter training is aimed at guaranteeing
effective supervision of the children in their use of the
computer and communications equipment. By the end
of 2006, Sonaecom had worked with three hospitals and
equipped them with fifteen Kanguru connections and six
3G mobile phones (Video-Call). Sonaecom also sponsors
all of the communications made with this equipment.
Optimus provides SMS solution for the
Ministry of Education
Sonaecom has an established track record of innovation
in messaging platforms, and this experience has enabled
the company to use mobile technologies as a tool to
reduce costs and increase efficiency of communications.
Optimus, working with the Ministry of Education
in Portugal (Department of Human Resources and
Education), has been developing a pioneer project
related to the 2006 placement of kindergarten workers
and teachers in primary and secondary schools.
A Smile with ICT
In partnership with the FDTI (Foundation for the
Communication of Information Technologies), Sonaecom
took part in the ICT Paediatric project. The purpose
of this is to furnish paediatric areas of public hospitals
with technological infrastructure to allow hospitalised
children to enjoy leisure moments and spend time with
family or friends. It is aimed at children between 2 and
14 years old, hospital technicians, volunteers and family
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65
Sonae Capital
Environmental education activities
in Troiaresort
Environmental education activities increase awareness
among the community of environmental issues. At
Troiaresort, these activities have been designed with
the goal of encouraging public involvement concerning
the sustainability of the area. For this reason, they are
planned to attract a wide ranging public audience, in
particular people from different age groups, and take
place in different locations, ranging from beach to
dunes and forest. The majority of those participating
are schoolchildren between the ages of 6 and 14, but
the range of activities have been increasing each year,
and has led to higher education students attending as
well as tourists and nearby residents. In addition to the
environmental educational activities, a beach board was
placed on the beach designed to increase environmental
awareness of users by providing information about the
special features of Troia, in particular the sand dunes,
endemic plants and wildlife.
Optimus provided a service that allowed teachers to
find out, via SMS, the latest updated lists of candidates
who have and have not been placed for the following
academic year. To access the service, the teacher only
needs to send an SMS, and then receives by return an
SMS with information regarding his/her placement
(whether or not he/she was placed, at what school, etc.).
From the user point of view, the service has the following
advantages: speed, convenience and the wide availability
of the medium used (mobile phone).
1st Phase - 23,184 sms (80% of which were answered in
less than 4 sec)
2nd Phase - 10,954 sms (95% of which were answered in
less than 1 sec)
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67
7. New Risks transformed into New Markets
and New Businesses
Throughout this report, we have stated that Sonae Group companies should look at the risks that they face as potential
business opportunities.
New environmental challenges and opportunities arise through both the need to incorporate environmental issues into
the day to day management of companies, and also through the fact that new environmental regulations, for example
in the area of energy production, may also be the source of new business activities.
This has been the rationale underpinning the activity of TP - Sociedade Térmica Portuguesa, SA, a company within Sonae
Capital, which, in partnership with other companies, has been developing the wind power and cogeneration businesses,
thus identifying new clusters of economic activity, and factors of differentiation and competitiveness within Portugal.
The Troiaresort Project also fits in with this approach. This emblematic project, which is important for Portugal, was
developed with the goal of reconciling the economic, social and cultural growth of the region with the protection and
preservation of specific environmental and archaeological aspects of the area covered by the project. In this resort, forests,
endemic species and Roman ruins are an integral part of the search to maximise the financial return of the project.
This approach was based on developing a project which aims to set itself apart by being different, and able to take
advantage of the existing natural characteristics of the area, while always preserving the biodiversity as a cornerstone
of the project. Thus, an area which previously had a set of risks linked to the existing urban infrastructure and various
complex regional environmental and social issues, has been transformed into a business opportunity, differentiated by
its management approach, which focuses on urban, social and environmental upgrade and improvement.
Sonae Capital
Sonae is part of a partnership to produce 4% of
total electricity production and 25% of all wind
power energy in Portugal
The growth of wind power energy in Portugal over the
next 6 to 8 years will be closely linked to the consortium
“Eólicas de Portugal” which has won a public tender offer
from the Portuguese government for a lot of 1,200 MW of
new wind power to be installed through to 2013.
The Sonae group, through TP - Sociedade Térmica
Portuguesa, SA, is part of a consortium which includes
other wind energy promoters such as Enernova of the EDP
group, Finerge, a company owned by the Endesa group
and Generg. Another partner is the German manufacturer
of wind turbines, Enercon, world leader in the production
of the latest generation of wind turbines. Enercon will
develop an industrial project the goal of which is to set
up a wind energy production cluster in Portugal.
ENEOP - Eólicas de Portugal, SA will build and install 49
wind farms from the North to the South of Portugal,
which will in all produce 2,700,000,000 kWh per annum,
equal to around 4% of total electricity production in
Portugal, and 25% of the country’s total wind power
energy production, and which is sufficient to supply
the domestic energy needs of more than 2,000,000
people, almost a quarter of the country’s population. The
electricity is produced with a 100% renewable and clean
resource, avoiding the need to import fossil fuels such as
coal or natural gas, and thus emission to the atmosphere
of more than 1 million tons of greenhouse gases, such as
CO2, each year.
Innovation, Synergies and Business Opportunity:
the Wind Turbine Industrial Cluster in Viana
do Castelo
In conjunction with the installation of wind farms, ENEOP
will develop an industrial project, which will be the heart
of a new cluster for the manufacture, installation and
maintenance of wind turbines, using state of the art
technologies, and will be highly competitive in the global
market for the latest generation of wind turbines.
The project to be implemented in Viana do Castelo will
include five units producing components and raw materials.
The industrial complex will have other competency centers
such as a research and development unit, and training,
logistics, service and maintenance centers.
Over and above the investment directly undertaken by
ENEOP, the industrial cluster will include the involvement of
29 companies which will supply all the goods and services
necessary for the manufacture of wind turbines, and the
installation and maintenance of the wind farms.
Overall, the cluster will create around 1,800 direct jobs,
and will export more than 60% of its production. The
investment involved in “Eólicas de Portugal” will be around
1,700 million euro, and will be a key structural project for
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69
the entire Minho-Lima region in terms of economic and
social development.
Partnership between Sonae and Endesa
(through TP SA and Finerge) builds a
cogeneration plant
In 2006, TP S.A and Finerge designed, constructed and
started up a cogeneration plant at the multinational tyre
maker, Continental Mabor, in Lousado, Famalicão.
For the manufacturing plant of Continental Mabor,
cogeneration is a means of rationalising energy
consumption, since the production of electrical energy
that takes advantage of the heat produced by
combustion, means a more efficient use of fuel, in this
case natural gas. In other words, there is a saving in fuel
consumption in a cogeneration plant compared to that
necessary to produce the same quantities of thermal
and electrical energy separately.
The environmental added value of this Project comes
basically from the high efficiency of the cogeneration
electricity production process. The plant has an overall
energy yield of 83% and an equivalent electrical output of
73%, significantly higher than the output of a conventional
combined cycle, natural gas electricity generation plant,
which is around 55%.
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Sonae SGPS, S.A. Sustainability Report 06
Continental Mabor Cogeneration Plant
Unidades
Valores Anuais
Energy Statistics
Electricity Produced
MWh
39,600
Steam Supplied to Continental Mabor
ton
98,000
Natural Gas Consumption
m3
12,500,000
Energy Efficiency
Electrical Yield
31%
Overall Yield
83%
Equivalent Electrical Yield
73%
Eco-Efficiency
Primary Energy Saving
Natural Gas Consumption Saving
CO2 Emissions Avoided
17%
m3
2,600,000
kg
6,100,000
The cogeneration plant, Enerlousado, has led to a saving of
around 17% in the consumption of natural gas compared
to that which would be used for the same production
of electricity separately, equivalent to a reduction in CO2
emissions of 6,100 tons per year, thus contributing towards
efforts to reduce greenhouse gas emissions to the levels
that Portugal has committed to in the Kyoto Protocol.
Troiaresort
Troiaresort is being developed in an area which previously
had a number of risks relating to urban development
carried out in the past, environmental restrictions and social
issues. However, these risks have been transformed into a
business opportunity. The area’s biodiversity and heritage
are considered to be factors that differentiate the project,
and which are capable of creating value and that can be
capitalised into new tourism products and services.
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71
N
IMAR - Linking Troiaresort to Research
IMAR - Institute of Marine Research is an NGO whose
founder members include the majority of Universities in
Portugal that carry out research into the Marine Sciences.
Since 1998, IMAR has been working with Troiaresort,
coordinating the Marina and new Ferry Harbour
Environmental Impact Assessment. In 2001, it began to
carry out the environmental monitoring of Tróia. The main
conclusions arrived at by the IMAR team are the natural
accretion of the western side of the Tróia peninsula, and
the fact that the project’s development appears to be
having no significant negative impact on the environment.
A number of positive environmental aspects have been
detected, in particular the reduction of the pressure of
humans on the salt marsh bird life due to control of visitor
access. Also noteworthy has been the construction of off
ground boardwalks, which have encouraged sand dune
recovery and the re-colonisation by endemic plants of
these habitats.
Troiaresort
Marina
Central Area
Bat Shelter
Job Creation
When fully operational, Troiaresort will create around
4,000 direct and indirect jobs.
Beach Area
Pine tree reforestation
Between 2000 and 2006, around 8000 wild pine trees
(Pinus pinaster) were cut down due to a disease - the
wild pine wood nematode.
In the Environmental Management Programme for
2006, one of the goals was to replant 50% of the pine
trees cut down. This goal has been achieved and it is
now expected that the remaining trees will be replanted
during 2007.
Golf and Hotel Resort
Troia Golf
In order to encourage eco-efficiency at Troia Golf,
plans are underway to upgrade the irrigation system,
including a new pumping station, and to improve
the golf course lakes, in particular by waterproofing
the lake bottoms.
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Since 2000, a protocol has existed with the National Forestry Department to manage the
forested area of the Troia peninsula. As part of this protocol, steps were taken to combat the
pine tree nematode and other existing diseases, and to control and eradicate exotic species
that are negatively impacting local eco systems, with the goal of preserving biodiversity.
Eco resort
In order to promote the biodiversity of the area which is included in the
Natura 2000 Network, the Eco resort project takes into account several
aspects such as:
. the removal of a dam, built in the early 1900’s for agricultural use, that will
allow the local salt marsh habitat to be recovered,
. 3 freshwater lakes that will encourage the presence of new species, in
particular ducks and the purple gallinule (Porphyria martinica),
. the wader community in the Caldeira lagoon is so numerous that, for some
species, the population is greater than the total numbers that inhabit the
entire Sado Estuary Nature Reserve.
Roman Ruins
The Roman Ruins of Troia are listed as a National Monument. A protocol has
been signed with the IPA (Portuguese Institute of Archaeology) and IPPAR
(Portuguese Institute of Architectural Heritage) for the preservation and
improvement of the monument.
Beach Fill
The sand taken from excavations in the Central Area is being used for beach
fill in the area next to the Roman Ruins. The main goal of this work is to
efficiently protect this cultural heritage which was showing clear signs of
deterioration.The beachfill was designed by IMAR in conjunction with the US
Corps of Engineering.
Bat Shelter
Golf
A free-tailed bat colony, with around 120 bats, was found in an unfinished tower
block prior to its demolition. A new bat shelter was designed and built, which
includes structural elements from the demolished tower, to ensure the best
conditions for the colony. Soon after the demolition, in September 2005, about
20 bats were found in the new shelter, and this number has remained steady,
which suggests an excellent outcome. In fact, in most documented similar
situations, the occupation of alternative shelters tends to take between one to
two years after the loss of the original ones.
New Ferry Harbour
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73
Glossary
AA1000
Developed by AccountAbility (an international professional institute
dedicated to the promotion of social, ethical and overall organisational
accountability), this is a standard providing the necessary methodology
and tools to design, implement, evaluate and communicate quality
dialogue with stakeholders.
Carbon dioxide ( CO2 )
A naturally occurring gas, and also a by-product of burning fossil fuels
and biomass, as well as land-use changes and other industrial processes.
It is the principal anthropogenic greenhouse gas that affects the Earth’s
radiation balance. It is the reference gas against which other greenhouse
gases are measured and therefore has a Global Warming Potential of 1.
Climate change
Climate change refers to a statistically significant variation in either the
mean state of the climate or in its variability, persisting for an extended
period (typically decades or longer). Climate change may be due to natural
internal processes or external forcing, or to persistent anthropogenic
changes in the composition of the atmosphere or in land use.
Co-generation
The joint production of heat (often in the form of steam) and power
(usually in the form of electricity).
Corporate Responsibility
Business contribution to Sustainable Development.
Eco-efficiency
A business concept developed by the WBCSD with a view to the creation
of new and better goods and services using fewer natural resources, and
causing less pollution along the entire value chain.
Electrical Equivalent Efficiency
Equal to cogeneration electricity produced divided by the total fuel
consumed in the process, from which is subtracted the fuel necessary
to produce the thermal energy from cogeneration. This measure is
directly comparable with the electrical efficiency of conventional power
stations.
Electro magnetic fields
Electric fields are created by differences in voltage: the higher the voltage,
the stronger will be the resultant field. Magnetic fields are created when
electric current flows: the greater the current, the stronger the magnetic
field. An electric field will exist even when there is no current flowing. If
current does flow, the strength of the magnetic field will vary with power
consumption but the electric field strength will be constant.
EMAS
The Eco-Management and Audit Scheme, a voluntary initiative set
up through the European Union, designed to improve companies’
environmental performance.
Emissions
In the climate change context, emissions refer to the release of greenhouse
gases and/or their precursors and aerosols into the atmosphere over a
specified area and period of time.
Energy efficiency
Ratio of energy output of a conversion process or of a system to its
energy input.
Environmental Impact Assessment
A means of ensuring that environmental considerations are taken into
account at the planning stage of major projects, and required by law for
certain types of project.
Ergonomics
The study of the relationship between workers and their environment,
especially the equipment they use.
Genetically Modified Organisms
A genetically modified organism (GMO) is an organism whose genetic
material has been altered using techniques in genetics generally known
as recombinant DNA technology. Recombinant DNA technology is
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Sonae SGPS, S.A. Sustainability Report 06
the ability to combine DNA molecules from different sources into
one molecule in a test tube. Thus, the expression of certain traits, the
phenotype of the organism, or the proteins it produces, can be altered
through the modification of its genes.
Greenhouse gases
Collective term for those gases in the atmosphere that absorb long wave
infra red radiation emitted from the earth’s surface, such as CO2, Methane,
and CFCs. These gases can be generated by human activities or naturally,
and are responsible for heating up the earth’s atmosphere.
Gross Value Added (GVA)
The difference between the value of output and input in an economy.
Ombudsman
A term that was originally used to describe an official who investigates
citizens’ complaints against the government or its servants, and which
is nowadays a role created in some companies to deal with complaints
from stakeholders.
Recycling
Reprocessing of recovered materials for its original or other purpose,
including composting but excluding energy recovery.
Reinsurance
Reinsurance is a means by which an insurance company can protect
itself against the risk of losses by transferring risk to other insurance
companies. Individuals and corporations obtain insurance policies to
provide protection for various risks (hurricanes, earthquakes, lawsuits,
collisions, sickness and death, etc.). Re-insurers, in turn, provide insurance
to insurance companies.
Renewable energy
Energy sources that are sustainable within a short time frame compared
to the Earth’s natural cycles, and which include non-carbon technologies
such as solar energy, hydropower, and wind, as well as carbon-neutral
technologies such as biomass.
SOHO
Small Offices and Home Offices, a customer segmentation classification
commonly used in the telecommunications business.
Sonae SGPS
The official portuguese nomenclature for the Sonae holding company
Sub-holding
A holding company within the Sonae Group, which directly or indirectly
holds shares in related or associated undertakings in defined economic
sectors.
Supply chain
The various activities related to or developed by a company with the
purpose of meeting the needs of its clients, ranging from relations
with suppliers to production and sales cycles up to the final stage of
distribution to the end consumer.
Sustainability
A concept which involves companies, organisations and countries
finding an appropriate balance between economic, environmental and
social factors in the course of their growth and development.
Sustainable Development
Forms of progress that meet the needs of the present without
compromising the ability of future generations to meet their needs.
WWF
World Wildlife Fund, a global environmental conservation organisation.
For more information about sustainability in Sonae’s sub holdings, please go to:
Modelo Continente
www.modelocontinente.pt
Sonae Sierra
www.sonaesierra.com
Sonaecom
www.sonae.com
Property
Sonae SGPS, S.A.
Head Quarters
Lugar do Espido, Via Norte, 4470-909 Maia, Portugal
Consultants
Triple Value | Sustentare
Graphic Design
Dematos Designers, Lda
Printing
Printed on Accent White paper
Accent White paper is manufactured with 75% recovered fibre, obtained
using 25% urban solid waste, 50% from the sawmill industry, and 25%
chlorine free fibre
Printed using vegetable oil based ink
Printed by: Lidergraf, an ISO 14001 Environmentally Certified company
Sustainability Report 06 Sonae SGPS, S.A.
75
SGPS, S.A.
Head Office: Lugar do Espido, Via Norte, 4470-909 Maia, Portugal
www.sonae.pt
Share Capital: EUR 2,000,000,000
Maia Commercial Registry and Fiscal Number 500 273 170
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Sonae SGPS, S.A. Sustainability Report 06