READY FOR THE

CHALLENGES OF
THE FUTURE

Annual Report 2019

4 | A R 201 9 5

WE HAVE UNDERGONE A MAJOR TRANSFORMATION

THAT ENABLES US TO BUILD TODAY THE FUTURE
TO WHICH WE ASPIRE.
6 | A R 201 9 7

A FUTURE THAT INCLUDES ODEBRECHT RECONNECTING

WITH SOCIETY THROUGH DIALOGUE, TRANSPARENCY,
ETHICS AND INTEGRITY.
8 | A R 201 9 9

A FUTURE MARKED BY A CONSTANT DRIVE FOR INNOVATION

AND THE DETERMINATION TO ADOPT SUSTAINABLE
SOLUTIONS THAT MAKE A DIFFERENCE IN PEOPLE’S LIVES.
10 | A R 201 9 11

A FUTURE GROUNDED IN THE ENGAGEMENT OF EACH OF

OUR TEAM MEMBERS. THEY ARE THE DRIVING FORCE BEHIND
OUR TRANSFORMATION TO BUILD A BETTER WORLD.
A R 2 0 1 9

OUR INTERNAL TRANSFORMATION

JOURNEY AND THE RESTRUCTURING OF
OUR BUSINESS THAT BEGAN THREE YEARS
ARE THE FOUNDATION FOR NEW
OPPORTUNITIES IN SUSTAINABLE GROWTH
FOR THE ODEBRECHT GROUP.

We are guided on this journey by our commitments and the first quarter of 2019, point to a new phase of
to society, the first of which is always act ethically, growth, which would be even more robust if Brazil
with integrity and transparency. and the other countries we serve were to surmount
the structural limitations of their economies.
We continue to enhance our governance and to
strengthen the performance of our Businesses The immediate challenge facing Odebrecht S.A., the
by disseminating and putting into practice the Group’s holding company, is stabilizing its financial
new policies and directives that have renewed the situation, including approval by its creditors,
corporate culture of a group with over 75 years of ratification by the Courts and execution of the
experience, accumulated knowledge and expertise court-supervised reorganization plan, in accordance
in the various fields in which we operate. with the petition filed on June 17, 2019.

The force that drives us is our team members, with In parallel, we are working hard to rebuild the
their capacity to overcome adversity and transform company’s reputation and to plan how Odebrecht
challenges into solutions in the form of products and will be decades from now, for example, in 2044, on
services that improve people’s lives and contribute its 100th anniversary.
to sustainable development in the various regions
in which we operate and serve. The dedication and That is how we are building the future: based on our
energy of our team members are our greatest assets. experience and knowledge, always driven by the
force of our spirit of service and attentive to the
Our deliveries and accomplishments on this ever-accelerating transformations in the world.
transformation journey, as shown by the
performance highlights of our companies in 2018

*We reference the indicators of the reporting framework of the Global Reporting Initiative (GRI) in the footnotes and, when
appropriate, relate them to the Sustainable Development Goals (SDGs) of the United Nations. The GRI is an independent international
organization that establishes standards for the reporting of results and impacts by companies, governments and other organizations
in areas such as the environment, human rights and combatting corruption.
14 | A R 201 9 15

16 24 26 44
MESSAGE THE ODEBRECHT ABOUT THE HOW WE OPERATE
FROM LEADERS GROUP IN ODEBRECHT GROUP
NUMBERS Ethics, integrity
Message from The Odebrecht Group and transparency
the chairman
of the board of Our Governance Proactive role of
Odebrecht S.A. team members
Board of
Message from the Odebrecht S.A. Our commitment
chief executive to sustainability
officer of Executive team
Odebrecht S.A.

74 OUR RESULTS
Evolution of
the portfolio
90 OUR
BUSINESSES 108 HOW WE
PREPARED THE
ANNUAL REPORT

Financial
performance

Reputation
journey

Odebrecht
Foundation

Private social
investment
16 | A R 201 9 17

WE HAVE LEARNED
FROM THE RECENT
PAST AND CONTINUE TO
LEARN SO THAT WE
CAN BETTER MEET,
IN THE COMING
FUTURE, THE NEEDS
OF OUR CLIENTS, THE
EXPECTATIONS OF OUR
SHAREHOLDERS AND
THE DEMANDS
OF SOCIETY.
Ruy
Sampaio
CHAIRMAN OF THE BOARD
OF ODEBRECHT S.A.
18 | A R 201 9 19

MESSAGE FROM THE CHAIRMAN OF

THE BOARD OF ODEBRECHT S.A.

Yes, we have in fact learned and evolved from These fronts were the topics of our annual meeting To coexist interactively and productively in You can count on the support from my generation.
the experiences of the recent past. We face the in 2018, which can be summed up in three words: the communities where we operate, we must Take the initiative in incorporating new ideas,
challenge of returning onto a path of consistent exist, coexist, dream. demonstrate that we have learned and have proposing new ways of working and achieving. Be
growth. We need to evolve much more. We need changed. We know the way. bold, innovate and dream with your eyes open.
to evolve in our way of thinking and acting. We live To exist, first we must balance our financial
in a world of constant and rapid transformations. A situation. We must ensure our healthy survival. In To dream, we must believe in our future. We Together we will continue a history of
world that is substantially different from the one in 2019, we will continue the program to restructure must trust in our innovative actions. We must accomplishments of 75 years begun in Salvador,
which most of us studied and in which we picked the Group’s assets and finances. draw on the competence and boldness of our Bahia by Norberto Odebrecht and passed on to
up habits and behaviors that no longer fully apply. young professionals. Brazil and the world by successive generations of
We need, all of us, to acquire habits and develop entrepreneurs formed in the Group. Together we
behaviors consistent with the future that is It is you, young professionals, with innovative ideas will make our dreams a reality.
knocking on our door and that will continue to and actions who will lead us into the future to
constantly evolve. TO DREAM, WE which we aspire. I trust in you young professionals from our newer
MUST BELIEVE IN generations to return us onto a path of growth and
Yes, we must demonstrate our ethical conduct I ask all young professionals at Odebrecht to think development. For that, I also am counting on the
OUR FUTURE. WE
and act with integrity and transparency in how about how we can innovate, always. Provoke your support of my colleagues on the board of directors
we do and attract business. We must be at once MUST TRUST IN OUR leaders and their leaders. and on the efforts and dedication of our chief
courageous, dedicated and innovative. INNOVATIVE ACTIONS. executive officer, his team and the Business leaders.
In late 2018, the board of directors of Odebrecht
WE MUST DRAW ON
S.A. approved the group’s strategic direction, which
was proposed by the chief executive officer, after THE COMPETENCE
successive and productive debates that involved AND BOLDNESS
the directors, the global advisory council and our
OF OUR YOUNG
executives. Soon, we will formulate our 2030 Vision.
PROFESSIONALS.
The strategic direction of the Odebrecht Group is
based on three key f ronts: f inancial stabilization, RUY SAMPAIO
rebuilding the image and reputation and Chairman of the Board
building the future. of Odebrecht S.A.
20 | A R 201 9 21

ODEBRECHT GROUP TEAM

MEMBERS HAVE PROVEN
THEIR STRENGTH BY
OVERCOMING IMMENSE
CHALLENGES IN RECENT
YEARS. WE PRIZE THEIR
EFFORTS THAT ALLOWED
US TO STAY ON COURSE TO
RESUMING GROWTH IN
OUR BUSINESSES.
Luciano
Guidolin
CHIEF EXECUTIVE OFFICER
OF ODEBRECHT S.A.
22 | A R 201 9 23

With its dynamic and diverse portfolio of delegation of our culture, we manage the portfolio we are fully prepared to serve and to create value Our operational companies, with the exception
Businesses and Investments, how does of Businesses by respecting their self-sufficiency and for our clients and for society in general. Our of Atvos, which had resorted to the same
Odebrecht S.A. create sustainable value for decision-making autonomy. A constant challenge collaboration with the authorities in countries protective measure, are not included in such
society and all stakeholders? of some of the Businesses is to strike a balance where we have yet to sign leniency agreements reorganization. Therefore, now we are focused
Luciano Guidolin - The Odebrecht Group has between creating value and keeping debt at a has advanced positively, as exemplified by the on moving forward in these processes. We are
made considerable advances in recent years, as comfortable level to create adequate conditions for agreements and commitments we have signed confident that we will complete this phase
shown by the transformation journey on which resuming investment and developing new projects. since 2016. successfully and will soon be embarking on a
we embarked in 2016. Our Businesses continue The groundwork for this financial restructuring cycle of sustainable growth.
to move forward, and our team members remain was a key focus of our work in 2018 and will remain What is the role and importance of team
focused on excellence and efficiency in our as such in 2019. The advances in our systems and members on the transformation journey and for On the second f ront, all actions and initiatives
operations, as well as attentive to opportunities for processes demonstrate how we continue to fulfill the renewed growth of the Odebrecht Group? are aimed at reconnecting the Odebrecht
innovation, as you can see in examples throughout our commitments to society in an effort led by Luciano Guidolin - The Odebrecht Group is over Group with society. We acknowledged our
this report. The results and achievements of 2018 Odebrecht S.A., in synergy with each Business. 47,000 team members dedicated every day to mistakes, undertook commitments and
confirm our capacity to create value and to serve delivering innovative solutions. We are the driving transformed ourselves to serve, ethically and
clients and society in all sectors in which we What signs have you seen of growing trust force behind the benefits and positive impacts transparently, the countries in which we
operate. Examples include progress on construction on the part of society and stakeholders in the that our Businesses and Investments produce in operate. These actions go beyond internal
of hydroelectric plants in Brazil and Angola, the Odebrecht Group’s commitment to ethics, several sectors and regions. The past few years changes to include initiatives for improving
consolidation of operations in the oil and gas integrity and transparency? have demanded intense effort and resilience ethics, integrity and transparency of external
sector, growth in sugar and ethanol production, Luciano Guidolin - In Brazil and several countries, to continue delivering on our commitments business environments, among other aspects.
innovations in the petrochemical sector and the we signed leniency agreements with authorities at each Business. And we have honored all We only conduct business in strict compliance
delivery of large-scale real estate projects. and complied with all the conditions established those commitments. with all laws and regulations and do not tolerate
therein. We have met the goals of the external any acts of corruption or any other misconduct
There is no denying that the capacity of our teams monitoring process established in the agreements There are still important challenges and in violation of laws or in conflict with our
and their achievements in our various Businesses signed with the U.S. Justice Department and adjustments to be made on various fronts. In commitments.
is sometimes overshadowed by public opinion the Brazilian Federal Prosecution Office, which recent years when we had to be more efficient,
in light of past events. But, by monitoring the included implementing new processes and productive and disciplined, the delivery capacity The third f ront is marked by our positive
performance of each Business, we have seen how controls in all areas of Odebrecht S.A. and in and the commitment of our teams to our culture aspirations and the belief that society also
the strength of our culture reflected in our spirit each Business. have been test proofed. As managers of a portfolio benef its f rom innovative and transformative
to serve is the common bond that unites all of us of Businesses, we are responsible to demonstrate businesses. The achievements of future
in the Odebrecht Group, driving us to overcome The restructuring of the boards of directors of to all our team members how much we recognize generations will only be possible if the world
challenges every day and to build a better future. the holding company and of each Business, with their efforts and value their professional capacities. evolves towards a consumption model marked
larger participation of independent directors; the This is an essential step to enable us achieving our by economy of resources such as in water and
What are the main challenges of the Businesses removal of barriers to our companies acting as goals for the next three years. food, by lower carbon emissions and more
and how has the holding company helped to service providers, such as by Petrobras in Brazil; renewable energy. A world in which smart cities
overcome them? the transparency in publishing new policies; team What is the Odebrecht Group’s outlook for the and inf rastructure help improve quality of life
Luciano Guidolin - Odebrecht S.A. plays the role members’ participation in compliance training; next three-year period? and reduce social inequality. We, at the
of the guardian of the culture and is responsible and the engagement of civil society in initiatives Luciano Guidolin - The strategic guidelines for Odebrecht Group, are dedicated to
for giving the group a shared strategic direction, to combat corruption, among so many other the next three-year period are concentrated on surmounting all challenges and being a part of
supported by our policies and the commitments examples, demonstrate that we made great three f ronts: f inancial stabilization, rebuilding this future.
we have undertaken. Our main challenges are headway in reclaiming our right to coexist and our reputation through transparent relations
coordinating solutions to surmount this moment our social license to operate. with society and planning for a resumption
of financial stabilization and to consolidate the in growth and investment. On the financial
changes arising from restructuring our Businesses. With the many changes we have implemented stabilization front, Odebrecht S.A. and some of
In line with the concepts of decentralization and over the last two years, I can confidently say that its subsidiaries were forced to file a petition for
court-supervised reorganization on June 17, 2019.
GRI 102-14 GRI 102-14
24 | A R 201 9 25

THE ODEBRECHT GROUP IN NUMBERS

The Odebrecht Group, which was

founded in Brazil, has operations and

1
representative offices in 27 countries
and a diversified portfolio of
Businesses and Investments in
engineering and construction,
petrochemicals, agroindustry, oil and
gas, real estate development, and

8
infrastructure and energy investments.
Odebrecht S.A. is the holding company
of this dynamic portfolio of Businesses
of Businesses and Investments
that are financially self-sufficient to
manage their operations and
6
assets independently.
13
10 11
7 Businesses
5 14 9
Operations in engineering and

7
construction, petrochemicals,
agroindustry, oil and gas, real estate
development, and infrastructure
and energy investments.
12
R$ 4 2
86,3
40,2
R$

billion
in gross revenue

R$ million
13,7 in private
social investment

billion
47,8 1. Germany 8. United States 14 countries
MIL

in Ebitda 3 . Angola 9. Ghana 14 with Odebrecht

3. Argentina 10. Mexico Group operations
TEAM MEMBERS 4. Brazil 11. Panama
5. Colombia 12. Peru 13 countries with
6. United Arab Emirates 13. Dominican Republic 13
representative offices
7. Equador 14. Venezuela
of the Businesses

GRI 102-1 | 102-4 | 102-5 | 102-6 | 102-7 GRI 102-4 | 102-6

 27

WHAT IS OUR ROLE

AS A STRATEGIC
HOLDING COMPANY?
 29

R A 2 0 1 9

WE HAVE A DYNAMIC
PORTFOLIO OF SELF-
SUFFICIENT BUSINESSES
AND INVESTMENTS AND
ACT AS THE GUARDIAN
OF OUR BUSINESS
CULTURE THROUGH
WELL-ESTABLISHED
GOVERNANCE.
30 | A R 201 9 31

THE ODEBRECHT GROUP

At the Odebrecht Group, we are more than 47,000

team members working under a single culture based
on the concepts and principles of the Odebrecht
Business to ensure sustainable performance and
growth in all operations. AT THE ODEBRECHT
GROUP, WE ARE
Entrepreneurial Technology (TEO). Our technical and Our commitment to transparency and to
planning capacity, combined with the execution transforming our governance is constantly
experience of our teams, is a major competitive advancing with the adoption of effective actions

MORE THAN 47,000

advantage in all our Businesses, recognized by society to ensure compliance of all processes, the
and clients in each country where we operate. restructuring of businesses and the adoption of
best practices in corporate governance. In 2018, our

TEAM MEMBERS
As the manager of a dynamic portfolio of board of directors was completely renewed. New
Businesses and Investments, Odebrecht S.A. policies and directives were approved guiding all
provides alignment with our culture and our business practices.

WORKING UNDER A
its practice through policies and directives
consistent with our commitment to always act To learn more about the advances in our
ethically, with integrity and transparency. This commitment to the future and to society, see the

SINGLE CULTURE.
is achieved by our participation on the board of timeline with our key actions and achievements
directors of each Business, which is a governance on the website Our Commitment. And learn
body providing follow up on business strategies more about our internal transformations on our
and supervision of the management of each corporate website.

MORE INFORMATION MORE INFORMATION

Timeline Transformation Journey
Our Commitment Odebrecht website
32 | A R 201 9 33

OUR GOVERNANCE
Our corporate governance encompasses all holding company as well as how it interacts Governance Policy of Odebrecht S.A. establishes the Odebrecht Group and to ensure alignment
management, communication and process through specific board of directors with the the concepts, guidelines and practices that we with our culture.
systems used to manage and monitor the Businesses in which it invests. The Corporate adopt to support the operations and growth of

Our governance structure

O D E B R E C H T S . A . B U S I N E S S E S

BOARD OF
DIRECTORS OF
ODEBRECHT S.A. CEO BD OEC OEC 
Luciano Guidolin CBD-OEC - Luciano Guidolin LN OEC - Fábio Januário
CHAIRMAN
Ruy Sampaio
EXECUTIVE TEAM ADVISORS BD BRASKEM BRASKEM 
VICE-CHAIRMAN RESPONSIBLE FOR CBD-BRASKEM - Marcelo Lyrio LN BRASKEM - Fernando Musa
Luciano Guidolin COMPLIANCE FUNCTIONAL SUPPORT
S HAREHO L D E R S

INDEPENDENT COMMITTEE (RAFS) BD ATVOS ATVOS 

MEMBERS CBD-ATVOS - Luciano Guidolin LN ATVOS - Juliana Baiardi
João Nogueira Finance, Planning
Roberto Faldini R-Compliance
and Investments RAF

CL I EN TS
To be hired Olga Pontes1 BD OR OR
Marco Rabello
CBD-OR - Luciano Guidolin LN OR - Marco Siqueira
Legal and
Governance RAF BD OCYAN  OCYAN
GLOBAL ADVISORY COUNCIL CBD-OCYAN - Luciano Guidolin LN OCYAN - Roberto Simões
Maurício Bezerra
Claudio Valladares-Padua
Georg Kell People, Communication BD OLI OLI 
Jermyn Brooks and Sustainability RAF CBD-OLI - Luciano Guidolin LN OLI - Maurício Cruz
Lynn Paine Daniel Villar
Mark Moody-Stuart
Rubens Ricupero BD OTP OTP
Vinod Thomas CBD-OTP - Luciano Guidolin LN OTP - Adriano Jucá5
Auxiliary Companies and Entities
Odebrecht Insurance Broker (”OCS”)
R-OCS - Marcelo Neves3

Odebrecht Private Pension (”ODP”)

R-ODP - Sergio Brinckmann4
ODEBRECHT FOUNDATION (”FO”)2
Board of Trustees

SPIRIT TO SERVE RESULTS

*The Odebrecht’s governance structure is horizontal because it depicts the entrepreneurial action line connecting clients with shareholders.
(1) Olga Pontes reports directly to the Compliance Committee (2) ODB is the sponsor of Odebrecht Foundation (3) Led by the Finance and Investments RAF (4) Led by People Management and Communication RAF (5) Business Leader interim

GRI 102-1 | 102-4 | 102-5 | 102-6 | 102-7 GRI 102-18 | 103-1 | 103-2 | 103-3
34 | A R 201 9 35

BOARD OF DIRECTORS

The board of directors, the main body in our COMPOSITION OF THE BOARD OF
corporate governance structure, is responsible for DIRECTORS OF ODEBRECHT S.A.*
approving the strategic guidelines and supervising
the management of Odebrecht S.A. It operates in Compliance Committee
accordance with the law, the bylaws of Odebrecht RUY SAMPAIO
S.A., the Corporate Governance Policy and the Chairman
Responsible for upholding the permanent commitment of Odebrecht S.A.to act
body’s charter. In 2018, the composition of the board
ethically, with integrity and transparency, in accordance with the Compliance
was reformulated with a majority of independent LUCIANO GUIDOLIN
members. Currently, the board is composed of Vice-Chairman Policy. Its duties include the internal audit and the terms of interaction with
four members, all of whom were elected by the
the external independent auditors, particularly with regard to instances of
shareholders’ assembly. JOÃO NOGUEIRA
non-compliance and enhancements of controls and processes.
Independent member
The board of directors is supported by three
advisory committees (see chart). The function ROBERTO FALDINI
of these committees is to analyze, without Independent member
decision-making powers, the matters in their Culture, People and
field of expertise to support with expertise and INDEPENDENT MEMBER TO BE HIRED
recommendations the decisions of the board of Sustainability Committee
directors. The committees operate in accordance
with the Corporate Governance Policy of Odebrecht
Responsible for upholding good practices in the corporate culture, the
S.A. and the charter of the board of directors. Only MORE INFORMATION
board members with qualifications in the field of Videos with testimonials of the succession of leaders, the definition of compensation parameters, coherence
expertise may compose these committees. board members of Odebrecht S.A.
in determining the holding company’s macrostructure and supporting decisions

on matters related to sustainability.

The bylaws of Odebrecht S.A. provide for the
establishment, when requested by shareholders,
of an audit board. This body is responsible for
supporting the supervision of management to
protect the creation of value for shareholders and
society. In 2018, no audit board was established. Financial and Investment Committee

Created in 2018 to analyze financial matters, investments in general, the

composition of the Business portfolio, the holding company’s financial risks

and proposals to engage and supervise the work of the external auditors.

GRI 102-18 | 102-23 | 102-24 | 102-25 | 103-1 | 103-2 | 103-3 | 405-1 GRI 102-30 | 103-1 | 103-2 | 103-3
36 | A R 201 9 37

THE CREATION OF
A BOARD WITH
A MAJORITY OF
INDEPENDENT
DIRECTORS IS
A PROFOUND
TRANSFORMATION
FROM THE
MANAGEMENT
STANDPOINT.
João
Nogueira
INDEPENDENT DIRECTOR
OF ODEBRECHT S.A
38 | A R 201 9 39

I AM CONVINCED THAT
WE ARE REBUILDING THE
FOUNDATIONS FOR OUR
FUTURE, CONSOLIDATING
OUR DEBT, RESTRUCTURING
THE COMPANY AND
STREAMLINING WHERE
NEEDED. THAT IS THE
MASSIVE CHALLENGE ON
WHICH THE BOARD AND
ALL EXECUTIVES AND THEIR
TEAMS ARE WORKING.
Roberto
Faldini
INDEPENDENT DIRECTOR
OF ODEBRECHT S.A
40 | A R 201 9 41

Global Advisory Council COMPOSITION OF THE GLOBAL Executive Team

ADVISORY COUNCIL MORE INFORMATION
In addition to its advisory committees, the board
Governance Page The chief executive officer of Odebrecht is
Odebrecht website
of directors draws on the support of the global responsible for the executive management of
advisory council, an advisory body without CLAUDIO VALLADARES-PÁDUA Odebrecht S.A., external representation of the
decision-making powers formed by members of Co-founder and vice-president of the board of holding company, compliance with all decisions
recognized knowledge and extensive experience Instituto de Pesquisas Escológicas (IPE), Brazil of the board of directors, ensuring alignment
in various fields. Its main function is to contribute with the culture through policies and directives.
to the Group’s development of a broad and GEORG KELL The chief executive officer is supported in these
diversified geopolitical perspective to strengthen Founder and former executive director of the UN duties by three executives specified in the bylaws.
its management in areas such as governance, Global Compact
sustainability and strategic direction. The global The executive team is responsible for the
advisory council work agenda follows an annual JERMYN BROOKS management of financial, planning, investment,
calendar of activities. Pioneer in global anti-corruption initiatives in governance, legal, people, communication
the World Economic Forum, United Nations and and sustainability matters. The chief executive
In 2018, the highlight was an annual meeting of the corporate world officer and other officers specified in the bylaws
members of the global advisory council and the participate as members nominated by Odebrecht
leaders of the Odebrecht Group, which was held in LYNN S. PAINE S.A. to the board of directors at each Business .
September in São Paulo. The central theme of the Senior associate dean at Harvard Business School
series of seminars and working sessions was refining
the strategic direction of the holding company and MARK MOODY-STUART
of its Businesses for the period 2019-21. President of the Global Compact Foundation and
vice-president of the board of the United Nations
To learn about the academic education, Global Compact
professional background and messages of the
members of the global advisory gouncil, see the RUBENS RICUPERO
governance and transformation journey sections of
Diplomat and former minister of finance and
the Odebrecht S.A. website, which also has a video
environment, director of the Armando Álvares
with testimonials.
Penteado Faculty, Brazil

VINOD THOMAS
Professor at the National University of Singapore
and former senior vice-president of the World Bank

GRI 103-1 | 103-2 | 103-3 GRI 103-1 | 103-2 | 103-3

42 | A R 201 9 43

ADVANCES IN OUR
CORPORATE GOVERNANCE

2
NEW COMPOSITION OF THE BOARD OF DIRECTORS

6 new
policies
approved by
the board annual
nd
2
independent
16 meetings
of the board of
directors in 2018

12
of directors meeting directors
since 2016
of the Global Advisory meetings
Council, in São Paulo of the compliance

1
committee in 2018

new

4
Refinement of the
Creation of
policy strategic direction
for the three-year the financial
meetings
in 2018 of the culture, people
(Legal Affairs)
period
2019/ and investment
committee
and sustainability
committee in 2018
2021

21
new internal directives
with guidance on processes and activities
approved from 2018 to March 2019 in the areas
of people, governance, planning, financial,
processes and controls, and social investment

GRI 103-1 | 103-2 | 103-3 GRI 103-1 | 103-2 | 103-3

44 | A R 201 9 45

HOW DO WE
CREATE VALUE IN
OUR BUSINESSES
AND INVESTMENTS?
 47

R A 2 0 1 9

OUR TEAM MEMBERS

DRIVE VALUE CREATION
IN OUR BUSINESSES
AND INVESTMENTS
BY STRENGTHENING
OUR COMMITMENT TO
SUSTAINABLE DEVELOPMENT
AND BY ACTING ETHICALLY,
WITH INTEGRITY AND
TRANSPARENCY.
48 | A R 201 9 49

ETHICS, INTEGRITY
AND TRANSPARENCY
The Odebrecht Group’s transformation over to a series of measures implemented across the
the past three years has been extensive and Group to adopt best practices internally and
profound. The commitment we made to Brazil, transform the business environment in which
in 2016, to act ethically, with integrity and we operate.
transparency, remains unshakable and has led

1 4 7 9
INCORPORATE
FIGHT AND SHOW ENSURE THAT ODEBRECHT INTO MEMBERS’
ZERO TOLERANCE NEVER RELY practices the Compliance System ACTION PROGRAMS
FOR CORRUPTION on cultural or customary throughout the Businesses’ value evaluations on performance
in all its forms, including market conditions as a chain, always up to date with the concerning the Compliance
extortion and bribery. justification for illicit actions. best benchmarks. System practice.

2 5 8 10
ENSURE
TRANSPARENCY HAVE THE
SAY NO FIRMLY in information about INDIVIDUALLY AND CONVICTION
and determinedly to Odebrecht, which should be COLLECTIVELY CONTRIBUTE that this commitment
business opportunities accurate, comprehensive and to necessary changes in the markets will keep us on the path
that conflict with accessible and published on a and settings where misconduct may of Survival, Growth
this commitment. regular basis. be induced. and Perpetuity.

3 6
BE AWARE
ADOPT that misconduct, whether by
PRINCIPLES FIRMLY action or omission or disregard
grounded on ethics, is harmful to society, breaks laws
integrity and transparency and destroys the image and
in relations with public and reputation of the Odebrecht
private agents. Group as a whole.

GRI 102-16 | 103-1 | 103-2 | 103-3 GRI 102-16 | 103-1 | 103-2 | 103-3
50 | A R 201 9 51

01. Governance for Compliance > The Policy on Compliance applies to all fully
-owned subsidiaries of Odebrecht S.A. This same policy also guides members
nominated by Odebrecht to the board of directors of each Business.
Compliance System
02. Policies and other guidelines > We published six new policies and 16
Odebrecht S.A. and each of its Businesses have The practice of the Policy on Compliance to Acting directives of Odebrecht S.A., which establish how we conduct business and
a team dedicated to compliance that reports to Ethically with Integrity and Transparency and the formalize processes. They also serve as references for the Businesses..
the respective board of directors. Leaders at each continuous enhancements to the compliance
team interact through the Integrated Compliance system, which encompass a series of measures to 03. Assessment of risks and controls > We approved our Risk Management
Committee (CIC) to harmonize processes and prevent, detect and remediate risks, attest to the Policy, which will be progressively implemented between 2018 and 2020.
track advances in the compliance system using effectiveness of our strategy and the maturity of
indicators standardized across the Group. our management. 04. Communication and education > We intensified our communication actions
and the preparation and training of our team members to strengthen the
culture of compliance throughout the entire Group.

05. Compliance of third parties > We prepared a Due Diligence and Third-Party
Integrity Directive and made advances in prioritizing and evaluating suppliers.

06. Engagement in collective actions > We supported the proposal for the
creation of the Observ Institute, an independent platform for ensuring
Management of the transparency in and enabling the monitoring of public bidding processes
7 Ethics Line Channel
and the execution of public works projects. We also participated, as a
member company, in the working group on Integrity and signed the Letter
Monitoring of
8 Risks and Controls of Commitment to the Business Movement for Integrity and Transparency, of
Engagement in
6 the Ethos Institute.
Collective Actions Detect
Compliance of 07. Management of Ethics Line channel > We continue to operate through
Third Parties 5
an external specialized firm the ethics line channel created in 2017. The
R-Complianceis responsible for managing the channel and investigating all
Communication
and Education 4 Leader reports received.
Prevent
Assessment of Risks
3 08. Monitoring of risks and controls > We conducted an internal audit
and Controls
of Odebrecht S.A. in 2017, which included the first cycle of the evaluation

Policies and Remediate of processes.

2 Remediating Risks and
other Guidelines 9 Strengthening Controls
09. Remediating risks and strengthening controls > Mitigating risks
Governance for Disciplinary
Compliance
1 10 Measures
strengthens the control environment, with options that include eliminating,
reducing, sharing or accepting risks, while respecting the risk tolerance and
appetite, as established in the Risk Management Policy.

10. Disciplinary measures > They comprise actions required to deter and
correct violations of the Code of Conduct, of our Commitment to Ethics,
Integrity and Transparency and of our policies and other guidelines. The
Ethics Committee is responsible for ensuring the proportionality and
balance of the disciplinary measures.

GRI 103-1 | 103-2 | 103-3 GRI 103-1 | 103-2 | 103-3

52 | A R 201 9 53

Training and awareness

New communication campaigns and training monitors presented the main advances in their work
programs for the compliance system demonstrate to ensure compliance with the agreements and took
the Odebrecht Group’s commitment to questions from team members, thus promoting
strengthening in each team member the practice transparency and dialogue.
of ethical business conduct grounded in integrity
and transparency. We periodically use the holding On the ODB News website, we launched a series of
company’s communication channels to keep team videos on compliance featuring testimonials from
members informed and updated on the guidelines our leaders and stakeholders. The platform, which is
of Odebrecht S.A. Furthermore, in 2018 focused on our team members, may be accessed by
and early 2019, the holding company conducted external stakeholders as well.
campaigns associated with the mandatory training
programs for all team members on conflicts of As part of the training actions at Odebrecht S.A., in
interest, anti-corruption and free competition, as 2018, all members of the board of directors and 99%
well as specific campaigns on the exercise of political of team members at Odebrecht S.A. underwent
rights and the use of the Ethics Line channel. training in compliance and anti-corruption. In the
training program on the leniency agreements, 33
One of the highlights of these communication people participated, including directors, executives
actions was the opportunity for all team members and the compliance and financial teams. Upon
to interact with the independent external monitors admission, each new hire participates in all
indicated by the U.S. Department of Justice and training programs on Compliance with Ethics,
the Brazilian Federal Prosecution Office (MPF) to Integrity and Transparency. After completing the
accompany the performance of the agreements training programs, team members take a test of
signed in 2016 by Odebrecht S.A. with these their knowledge and sign a declaration of their
authorities. In 2018 and once again in early 2019, understanding of the content presented and the
during events streamed live to the entire Group, the commitment to ethics, integrity and transparency.

+ than 3 + than

4million special 3million

campaigns views

VIEWS OF ARTICLES FROM JULY OF THE SIX VIDEOS

ON COMPLIANCE IN TO NOVEMBER ON COMPLIANCE
ODB NEWS ON ODB PLAY ODB News

GRI 103-1 | 103-2 | 103-3 | 205-2

54 | A R 201 9 55

Management of contractors
To ensure that our commitment to ethics, integrity in communication services as well as those rendering
and transparency is disseminated among all service services to the People & Organization team. By July
providers at Odebrecht S.A., we drafted, in 2018, a Third 2019, we will have applied the criteria of the new Due
Party Due Diligence and Integrity Directive, which was Diligence Directive to our reviewed base of current
approved by the executive board in December. We also suppliers. By April, the criteria will apply to all new
conducted a comprehensive review and pre-selection suppliers prior to their registration and engagement.
of our supplier base, which involved blocking inactive Another new front in the year was the evaluation and
companies and identifying those eligible for due selection of a supply chain management platform,
diligence. These companies include those engaged which is slated for implementation in 2019.

GRI 102-9 | 103-1 | 103-2 | 103-3

56 | A R 201 9 57

Ethics Line channel

The Ethics Line is a channel for reporting instances any applicable measures. These can range from
of misconduct in violation of the law, of the Policy improvements to a process or internal control to
on Compliance to Acting with Ethics, Integrity the application of disciplinary measures, such as
and Transparency of Odebrecht S.A., the other a warning or termination of the team member or
internal policies, directives and regulations or any the cancellation of a contract or the suspension
other commitments undertaken by the holding of payment due to violations of the Policy on
company. The Ethics Line can be accessed by all Compliance to Acting with Ethics, Integrity and
team members and by the external public via the Transparency. Each case receives a solution that
corporate website or telephone. Since May 2017, the is specific and compatible with its severity, in
channel is run by an independent, an independent, accordance with the Ethics Line Management
specialized external firm that impartially receives Directive, which was approved in February 2019,
and manages the reports and ensures the and with the Policy on Compliance to Acting with
confidentiality of the information. The firm analyzes Ethics, Integrity and Transparency.
and classifies all reports and then recommends to
Odebrecht S.A. the measures to be adopted. In 2018, the line registered 69 reports, 14 of which
lacked sufficient data for an investigation or were
All reports are investigated impartially based considered outside of the scope of the channel,
on an established methodology with legal while seven were related or repeated cases. A total
grounding to guarantee confidentiality and of 33 reports were forwarded to the Businesses
anonymity of the whistleblower and prevent and another eight resulted in the opening of
any retaliation. The Chief Compliance Officer is investigations at Odebrecht S.A. Of these, six were
responsible for the management of the Ethics considered unsubstantiated, two substantiated and
Line. Odebrecht S.A. has an Ethics Committee seven remained under investigation at the end of
established at the executive level that supports 2018. The numbers for 2018 are similar to those for
the Compliance Committee on matters involving the 68 reports received in 2017. The Businesses have
violations of the Commitment to Ethics, Integrity their own compliance teams to handle specific
and Transparency, including evaluation and reports and Ethics Line channels accessible in each
discussion of investigations into reports and country where they operate.

THE ETHICS LINE IS RUN BY AN

HOW TO CONTACT THE ETHICS LINE INDEPENDENT, SPECIALIZED EXTERNAL
The channels are available 24 hours a day, 365 days a year in Portuguese, English and Spanish FIRM THAT IMPARTIALLY RECEIVES
AND MANAGES THE REPORTS AND
https://www.odebrecht.com/en/
ethics-line 0800 377 8011 ENSURES THE CONFIDENTIALITY OF
THE INFORMATION.
GRI 102-16 | 102-17 | 103-1 | 103-2 | 103-3
58 | A R 201 9 59

Risk management
and internal controls

The Risk Management Policy of Odebrecht S.A.,

which was approved in 2018, establishes the Financial Rebuilding Recovering
implementation at the holding company of a
stabilization the image growth and building
risk management process involving five steps: and reputation the future
mapping and analyzing risks; presentation
and approval of a risk matrix by the board of
directors (BoD); preparation of mitigation and
contingency plans for priority risks; approval of
the risk appetite and tolerance by the BoD;
and establishment and implementation of risk
monitoring and follow-up.

In 2018, we conducted the first of five steps, Maintaining Resolution Strengthening

which involved mapping and analyzing the cultural unity in the of the financial and governance
risks of Odebrecht S.A., considering the specific Business portfolio legal liabilities related to
risks related to the corporate operations as well Operation Car Wash
as those relevant to the Businesses that could
affect the holding company. In this process, in
alignment with the strategic plan, we identified
the main risks to Odebrecht S.A. related to the
following eleven topics:

Positioning Ensuring the Team

Odebrecht S.A. as a practice of engagement,
non-operational compliance in all succession and
holding company areas of operation recruiting talent

In 2018, we also conducted internal audits at

Odebrecht S.A. and evaluated seven processes
at the holding company in this first cycle. They
Competitiveness Portfolio-related involve financial, accounting, legal and people
and sustainability of risks managed in management aspects. The results of these audits,
the holding company the governance of which support enhancements in our internal
and its Businesses each Business controls, were presented to the executive board
and to the compliance committee.

GRI 102-11 | 102-15 GRI 102-11 | 102-15

60 | A R 201 9 61

Business environment 67
meetings
Our commitments go beyond internal and follow-up of these changes. The third cycle
transformations to include initiatives for will focus on the sustainability and perpetuity of
WITH ASSOCIATIONS AND
improving the business environment and these transformations. PARTICIPATION IN NATIONAL
public-private relations in terms of ethics, AND INTERNATIONAL EVENTS
integrity and transparency in Brazil and other In July 2018, Odebrecht S.A. signed a leniency
countries. To support this effort, we participated agreement with the Office of the General
in public debates and business commitments Controller (CGU) and the Office of the General
to strengthen the culture of integrity, serving as Counsel for the Federal Government (AGU) that + than
an example of transformation and support new
external initiatives. In the area of ethics, integrity
included recommendations of improvements
related to the integrity programs of Odebrecht 390
and transparency. S.A. and its Businesses. The agreement included
requests
a commitment to pay approximately R$ 2.7
Our good practices and experiences on this billion over the course of 22 years. In February OBSERV INSTITUTE
transformation journey are widely publicized in the 2019, OEC, a subsidiary of Odebrecht S.A., signed FROM MEDIA VEHICLES Comprises an on line publicly accessed platform
media through the official channels of Odebrecht a cooperation agreement with the Office of the FULFILLED, CORRESPONDING to promote transparency and monitor public
S.A. and its participation in external events. Attorney General of Peru. In addition, seven other TO 97% OF ALL bidding processes and the execution of public
agreements already have been signed with Brazil,
REQUESTS RECEIVED works projects. That is the proposition of the
In the context of the Leniency Agreement with Ecuador, United States, Guatemala, Panama, Observ Institute prepared in 2018 as a result
the Brazilian Federal Prosecution Office (MPF), the Dominican Republic and Switzerland. of collaboration by Instituto Ethos, OEC, the
+ than
250,000
U.S. Department of Justice (DoJ) and the Swiss startup Jusbrasil, the global strategy firm
Office of the Attorney-General, we completed the In August 2018, Odebrecht S.A. and Petrobras Albright Stonebridge and the law firm
second year second year of external monitoring signed a Withdraw of Provisional Ban Instrument, Barros Pimentel Advogados.
with no deviations in the calendar. In the first year, which lifted the 2014 blockade on doing business views
the monitors learned about the company and with OEC and Ocyan. A series of commitments OEC provided financial support for engaging
made recommendations for improvements. In the related to integrity were part of the agreement the consulting firms, reports and travel required
second year, the focus was in the implementation signed with Petrobrás. OF THE OUR to design the institute proposal, with total
COMMITMENT WEBSITE investment of around R$ 1 million. Support for
the initiative was stipulated in the leniency
agreement signed with the MPF and DOJ,

4,2
covering actions to combat corruption in the
public interest . Once the creation of the Observ
Institute occurs, OEC’s relationship with it will be
million that of any other company in the inf rastructure
people sector, with no possibility of participating in the
management or decisions of Observ.

REACHED BY FACEBOOK
POSTS ON COMPLIANCE

GRI 103-1 | 103-2 | 103-3 | 419-1 GRI 103-1 | 103-2 | 103-3

62 | A R 201 9 63

PROACTIVE ROLE
OF TEAM MEMBERS
60,2% 73,7%
believe the company would believe their
do the right thing in a crisis leader is open to dialogue
The knowledge, experience and execution capacity to hold meetings on a monthly basis. The topics
of Odebrecht’s team members are the hallmark debated and the quality of the dialogue reinforced
by which the Group is widely recognized. This internal transparency and helped rebuilding the
recognition is based on the innovations and sense of being a part of the team.
quality products and services delivered to clients
and society, while creating value and fostering
development in each region where we operate. All
This recovery in the internal confidence and
engagement of our team members is clearly shown
65,9% 74,4%
this potential and engagement by our professionals in the annual reputation surveys conducted using
is driven by the force of the business culture the RepTrack method developed by the Reputation would defend the would recommend
practiced throughout the Odebrecht Group, guided Institute. Although still below the level considered company in an argument working at the company
by the Odebrecht Entrepreneurial Technology strong, the Group’s reputation among its team
(TEO) and by our policies and directives. The role members does present some bright aspects (see
of Odebrecht S.A. is to act as the guardian of the the table). All the aspects mapped in these annual
principles and concepts of the business culture to
ensure that they are practiced in daily routines and
updated for the successive generations of team
reputation surveys are taken into account when
formulating the company’s strategies and actions.
In 2018, to supplement the quantitative survey, we
68,9% 75,6%
members and the dynamics of the challenges expanded our internal discussion by conducting
feel that the company feel proud to work at an
faced in order to better serve society. eight focus groups formed by representatives of the
is more transparent Odebrecht Group company
Odebrecht Group. The goal was to understand the
In 2018, we created the Odebrecht Connect Live reasons for the positive and negative evaluations
to strengthen our permanent commitment to of Odebrecht’s attributes from the perspective of
improve the quality of relations between teams and our team members. The discussion allowed us to

70,6% 81,6%
the holding company’s leaders. The initiative seeks map, among other things, team members’ reasons
to expand internal dialogue between leaders and for working at Odebrecht, their perceptions of
teams at Odebrecht S.A. by addressing strategic advances in compliance and governance and the
topics of specific and general interest through main aspects influencing reputation. The results
discussion and sharing of experiences. Last year, of this diagnosis served to guide the creation and
speak well of identify themselves with the
five meetings were held, and the plan for 2019 is implementation of our internal engagement plan.
the company values espoused by TEO

72,5%
see the company evolving
in its commitment to acting
*RepTrack Deep Dive Survey from November 2018.
ethically and with integrity

GRI 103-1 | 103-2 | 103-3 GRI 103-1 | 103-2 | 103-3

64 | A R 201 9 65

Distribution of team members by region

OUR PEOPLE
7,0%
3,6%
3,7%

Number of team members by gender 9,5%

65,9% Brazil
79.616 10,4% Panama
Angola
13.239
Dominican Republic
Peru
57.589
Other countries
8.994 47.818
7.980
Team members by nationalities in 2018*

Brazilian 31.722

66.377 Dominican 4.453

48.595
Panamanian 4.447
39.838 Women
Peruvian 1.805

Men Angolan 1.563

Mexican 1.180

2016 2017 2018 Argentinian 708

American 358

Venezuelan 178

German 169

Colombian 128
Diversity in leadership*
Ghanaian 69

Ecuadorian 50

Portuguese 34

Spanish 17

24,8% 25,6%
Other nationalities (with up to 10 team members) 17

Unidentified nationalities** 920

are women of team members are Total 47.818

*Including officers, managers and coordinators.

35 years or younger
*Excludes the 17 team members with temporary work contracts, hence the total differs from the chart of number of team members by gender.
**Team members from countries where legislation protects disclosing information on nationalities.

GRI 102-18 | 405-1 GRI 405-1

66 | A R 201 9 67

Distribution of team members by function Distribution of team members per household time

0,8% 1,3%
5,7% 3,0%
9,6%
15,3%
78,2% 25,9%
35,1%
Senior executives 2 years or less at the company
Managers/Coordinators From 3 to 5 years
From 6 to 10 years
Administrative
From 11 to 20 years
Operational/Technical From 21 to 30 years
Over 31 years at the company

25,1%
Distribution of team members by age

50% of young
2,5% 1,610 young professionals
are women
professionals starting
their careers at the
Odebrecht Group (vs. 46% in 2017

12% and 45% in 2016)

693 3% share
interns of young
36,4% professionals
18,9% 225 in the total workforce
in the last three years,
recent college
graduates reaffirming the company’s
commitment to renewal,
25 years or younger transformation and
From 26 to 35 years 692 innovation despite the
From 36 to 45 years apprentices reduction in total number
From 45 to 60 years of team members
61 years or older

30,3%
GRI 405-1 GRI 405-1
68 | A R 201 9 69

Training and development

The pillars of our culture include trusting in people vision of the Odebrecht Group. Each Business
and in their capacity and desire to evolve, in the establishes its strategies and priority topics for
self-development via education through work developing its team members. In 2018, more
and a focus on the individual as the measure of all than 934,000 hours were dedicated to training, Destaque Awards 2018
values. Supported by this foundation, leaders play representing an average of 19.6 hours per team An annual initiative held for nearly three decades by the Odebrecht Group,
the role of educators by creating the conditions member. This average was approximately 11% the Destaque Awards recognize projects submitted by team members
and environment for integrating and developing lower than in 2017. For executive officers and that share the knowledge generated in their work environments in all
each of their team members. This process occurs administrative staff, however, the average number the Businesses. In these 27 years, over 7,400 projects were submitted. In
in successive cycles involving the development of of hours of training per professional increased by 2018, eight projects from different Businesses won awards in the following
new leaders and the integration of people who 68% and 330%, respectively. categories: Ethics, Integrity and Transparency (Ocyan); Image (Braskem);
accept the challenge to play a proactive role in Innovation (Atvos); Young Professionals (Braskem); Environment (OEC);
their own development. Over their careers, we encourage our team Community Relations (OEC); Recycling Knowledge (Ocyan); and Occupational
members to develop self-awareness and discipline Health and Safety (Itaguaí Construções Navais)
The main path for career advancement is the when planning their transition to the maturity
successful completion of sequential cycles of phase of their careers, when they will need
the action program (PA) marked by growing vitality, emotional equilibrium and accumulated
challenges and the constructive interaction experience for this new stage in their productive
between leader and the team member. More lives. To support them, we offer and manage a
than seeking promotions and merit, this model supplementary pension plan (Plano Odeprev
allows for prioritizing learning opportunities Brasil) through the Odebrecht Retirement Fund,
Evolution in number of projects submitted to
and experiences that lead to professional which currently manages R$ 3.2 billion
Destaque Awards in 27 years
accomplishment, while considering the life in assets for approximately 22,500 participants
moment of each individual and the long-term and dependents.

7.427

4.272
Average hours of training per team member 2018 2017
1.936
BY GENDER
947
Men 20,1 23,1 314 571
27

Women 16,9 16,5

1992 1998 2002 2006 2010 2014 2018
GENERAL 19,6 22,1

BY FUNCTIONAL CATEGORY

Executive Officers 2,1 1,3

Managers 7,5 8,8

Administrative 20,1 4,7

Industrial 20,5 29,8

GENERAL 19,6 22,1

GRI 103-1 | 103-2 | 103-3 | 404-1 | 404-2 GRI 103-1 | 103-2 | 103-3
70 | A R 201 9 71

Occupational health and safety

Our commitment to ensuring a healthy and safe approved the implementation in 2019 of a series OUR GOAL IS A
ZERO ACCIDENT
workplace encompasses the entire Odebrecht of measures to strengthen safety programs and
Group, as established in our policies on People practices, to increase team member training and
and on Sustainability. The practical results on each engagement and to improve the monitoring

WORKPLACE.
front are measured by indicators reported monthly and evaluation of results. The occupational safety
with respect to the targets established in the PAs performance targets of OEC for 2019 were reviewed
of all leaders, comprising thosedirectly responsible to help reverse the trend and improve performance
for teams to the leaders of the Businesses and the and consequently reduce the lost-time injury
chief executive officer of Odebrecht S.A. frequency rate by 30%.

In 2018, we recorded a lost-time injury frequency Despite the prevention efforts, the operations

OUR COMMITMENT
rate considering all the Businesses of 1.84, which registered three fatal accidents with one fatality
represents a 34% increase from the rate of 1.34 each: one at the SuperVia operation in Rio
registered in 2017. The main factor behind this de Janeiro, one in the construction of the BRT-

TO PEOPLE SAFETY
increase was the higher lost-time injury frequency Transbrasil in Rio de Janeiro and one in the
rate at OEC, which accounted for 42% of all hours construction of the Belo Monte Hydroelectric Plant.
worked in the year. To reverse this trend, OEC Nine fatalities were registered in 2017.

CONSTANTLY
CHALLENGES US TO
IMPROVE RESULTS.
Consolidated frequency rate of accidents
with lost time All Businesses*

1,84

1,34
1,26

2016 2017 2018

*Calculated by number of accidents with lost time and serious events for every 1 million man hours worked.

GRI 103-1 | 103-2 | 103-3

72 | A R 201 9 73
External engagement
We participate voluntarily in initiatives and
commitments to foster sustainable development.

COMMITMENTS TO SUSTAINABILITY In July 2018, we signed the Letter of Commitment

to the Business Movement for Integrity and
Transparency, coordinated by Instituto Ethos
– Empresas e Responsabilidade Social. In the
Our Sustainability Policy expresses our six conduct annual inventories of greenhouse gas same year, we joined a group that drafted the
commitments to a vision of the paths to sustainable emissions, which enable us to identify opportunities publication “Integridade no Setor de Construção
development and how we should act. We work to to improve the efficiency of controls and to develop – Discutindo Dilemas e Propondo Soluções
encourage people to act as agents of change both mitigation and adaptation strategies. Our business para o Mercado” [Integrity in the Construction
inside and outside of the Odebrecht Group and portfolio includes Atvos, which produces ethanol Sector - Discussing Dilemmas and Proposing
to emphasize the importance of balance among and generates renewable energy, representing Solutions for the Market], which was signed by
generating economic, social and environmental a business model that rises to the challenge of the Brazilian Network of the UN Global Compact
value, promoting culture and acting ethically, with combatting climate change. In 2018, the Business in partnership with Instituto Ethos. We also
integrity and transparency. made the first sale of international renewable constantly foster dialogue and share experiences
energy biomass certificates (I-RECs) in Brazil. with various industry organizations, including
Team members in charge of sustainability AMCHAM Brasil, Instituto Ethos, the Reputation
programs at each Business meet on a monthly In 2018, we reformulated the model for the Leaders Network and the Brazilian Association
basis in the Internal Sustainability Forum, which Odebrecht Award for Sustainable Development by for Business Communication (Aberje).
is a non-deliberative body that works to align creating a digital platform for online collaboration
management concepts and principles and share for open innovation. The proposal is aligned with
knowledge and experience. This strengthens the Odebrecht Award’s goal to engage students
the individual capacity of team members and in undergraduate engineering and architecture
harmonizes the advances in sustainability practices programs as proponents of sustainable ideas MORE INFORMATION
and improvements across the Businesses. and projects. In its nine-year history, the Brazilian Business Movement for
Integrity and Transparency
version of the Odebrecht Award has received 1,120
Sustainability performance is measured by projects from students in the fields of engineering,
indicators for eco-efficiency, occupational health, architecture and agronomy and distributed R$ 2.7
workplace safety and social impact specific to each million in awards. Simultaneously, the Odebrecht
Business. At the corporate level, we developed for Award was rolled out to ten other countries.
Odebrecht S.A. two maturity indicators that reflect Undertaking this initiative under the new model
that reflect the evolution in performance at each will be the subject of discussion in 2019. Meanwhile,
Business: sustainability performance maturity and we maintain dialogue with academia through
socio-environmental risk management maturity. specific projects and targeted actions, such as the
After completing testing of these indicators in Journey to the Future program conducted since
2018, they will be incorporated into the PAs of each 2016 in partnership with Companhia de Talentos
Business Leader as of 2019. and 12 other companies. The goal is to promote
interaction between university students in São
Preparing for a low-carbon economy is an Paulo with the leaders of the Odebrecht Group and
important component of the Odebrecht Group’s other companies to support the development of
sustainability management. The Businesses future professionals in their career choices.

GRI 103-1 | 103-2 | 103-3

GRI 102-12 | 102-13

74 | A R 201 9 75

HOW DO WE ENSURE
GROWTH AND
COMPETITIVENESS, TODAY
AND IN THE FUTURE?
 77

A R 2 0 1 9

WE LEVERAGE
INVESTMENTS IN OUR
ASSETS, STRENGTHEN
THE INNOVATION AND
EFFICIENCY EFFORTS
OF OUR BUSINESSES,
INVEST IN LOCAL
COMMUNITIES AND
CONTINUE TO
ADVANCE IN OUR
REPUTATION JOURNEY.
78 | A R 201 9 79

EVOLUTION OF
THE PORTFOLIO
Our portfolio of Businesses is composed of the constant challenges of driving efficiency,
seven financially and operationally self-sufficient productivity and innovation. As part of our strategy,
companies. Guided by the principles and concepts we assess opportunities to open our portfolio to
of TEO and inspired by the policies espoused by the partners interested in sharing in the creation of value
holding company, Odebrecht Group team members and in the results of our operations.
generate positive impacts on society through their
technical competence, knowledge, experience and Structured in 2016, our asset divestment plan sought
the quality of the products, projects and services to capture R$ 12 billion in proceeds, of which R$ 7.4
offered in all segments where we operate. billion has already been generated and R$ 5 billion
is pending. In October 2018, we completed the sale
INOVA BH IS AN EXAMPLE OF A PIONEERING INITIATIVE IN
The advances in our governance and the practices of Inova BH, the first Public-Private Partnership EDUCATION THROUGH A PPP BETWEEN OEC AND THE CITY
aligned with our commitment to ethics, integrity and (PPP) in education in Brazil, to the group Transpes – OF BELO HORIZONTE TO IMPLEMENT AND OPERATE 51 MUNICIPAL
transparency support our Businesses in surmounting Transportes Pesados S.A. PRESCHOOL UNITS (UMEIS). THE RESULTS SHOW HOW INNOVATIVE
PPP MODELS CAN IMPROVE THE QUALITY OF PUBLIC SERVICES
FOR SOCIETY.

Engineering Infrastructure &

Real Estate Manufacturing Agroindustry Oil & Gas
& Construction Energy Investments
BNDESPar
2,3% BNDESPar
10,6%

23,3%
Outros 38,3%

100% 100% 100% 100% 100%

FI-FGTS
30,0% 59,4%

36,1%
Petrobras

Odebrecht Odebrecht Odebrecht Odebrecht Odebrecht

Odebrecht Odebrecht
(50.1% voting
capital)

Integrated Solutions
Engineering Real Estate Producer of Sugar, Ethanol Irrigation, Energy Toll Roads, Urban
for the Oil & Gas
& Construction Developer in Brazil Thermoplastic & Electricity & Transportation Mobility, Airports, Port
Industry
Services Resins and in Latin America Terminals and Logistics
Biopolymers in Brazil

GRI 102-2 | 102-10 | 103-1 | 103-2 | 103-3 GRI 102-2 | 103-1 | 103-2 | 103-3
80 | A R 201 9 81
Gross revenue
(R$ billions)

FINANCIAL
PERFORMANCE
89
86
82
The consolidated f inancial indicators of a leverage ratio (net debt/EBITDA) of 6.1. The key
Odebrecht S.A. reflect the performance of its factors affecting our positions at the end of 2018
Businesses in the year. The diversif ication of the in comparison with a year earlier were exchange
portfolio minimizes our exposure to market risks, variation and delays in the divestments of
such as potential restrictive scenarios in one of
our sectors. In 2018, gross revenue came to R$
certain assets, which created the need to raise
funds to shore up the Group’s liquidity position
2016 2017 2018
86.3 billion, a 5.5% increase over last year. EBITDA and to fulf ill our commitments to authorities,
was R$ 13.7 billion, down 17.5% on the prior year. creditors and other stakeholders.
Net debt closed the year at R$ 83.2 billion, with
Ebitda
(R$ billions)

18
18
17
14
IN 2018, GROSS REVENUE
CAME TO R$ 86.3 BILLION, A
5.5% INCREASE OVER LAST 2016 2017 2018
YEAR. EBITDA WAS R$ 13.7
BILLION, DOWN 17.5% ON THE Net debt
PRIOR YEAR. NET DEBT CLOSED
4,6 6,1
THE YEAR AT R$ 83.2 BILLION, 4,2

WITH A LEVERAGE RATIO 83

(NET DEBT/EBITDA) OF 6.1. 78
75
Net debt
(R$ billions)

Leverage

GRI 103-1 | 103-2 | 103-3

2016 2017 2018
82 | A R 201 9 83

REPUTATION JOURNEY

Every day, in the holding company and our and empathy for Odebrecht stood at 25.5, on a
Businesses, we renew our commitments to society scale of 0 to 100. This compares with 14.2 in June
through actions that foster and strengthen ethical 2017 and 18.5 in December 2017. The score also
business conduct, with integrity and transparency. assesses the public’s perception in seven rational
Openness to dialogue and transparent dimensions, namely governance, workplace,
communication are essential for reconnecting innovation, products and services, performance,
the Odebrecht Group with all its stakeholders, leadership and citizenship. Attributes such as “is
laying the foundation to regain trust, rebuild our an ethical company,” “respects the diversity of
reputation and recover growth on our Businesses its team members,” “contributes to sustainable
to serve clients and society. development” and “works to prevent and
combat misconduct” registered the largest
The transformation journey initiated in 2016 has positive variations.
been positively received by meeting society’s
demands for ethics, integrity and transparency in Odebrecht also measures the quality of its brand
business activities and in public-private relations. exposure in the media (TV, print, radio and online).
One example of this recognition was the signing by For this, it adopts a classification similar to financial
Odebrecht S.A. and Petrobras of a commitment to market ratings, using a methodology that weighs
a series of actions that resulted in the lifting of the the type of vehicle, the audience or coverage and
temporary ban and enabled OEC and Ocyan once the editorial characteristics or presentation of the
again to bid on Petrobras projects. news. In 2018, brand exposure remained high in
all media, with a total of 41,049 mentions. This
One of the indicators we monitor is the reputation number, however, was 57% lower than in 2017, when
score of Odebrecht S.A., which was measured in mentions reached 95,714. In all, in 2018, our Image
2018 using the RepTrack® methodology of the Rating score was “EEE,” two notches above the “E”
Reputation Institute (RI). The results of the surveys rating of 2017.
conducted by RI are used to evaluate and guide
strategic actions to rebuild our corporate image Our goal is to go beyond our commitment to ethics,
and reputation. integrity and transparency. We want to participate
in initiatives that foster improvement in business
In 2018, the RepTrack Reputation Score showed
®
environments by combining our commitments
positive gains. In the last survey of society
conducted in June, the score that measured
with our capacity to serve and contribute to the
Sustainable Development Goals (SDGs) for 2030
EVERY DAY WE RENEW OUR
the level of esteem, conf idence, admiration established by the United Nations.
COMMITMENTS TO SOCIETY
THROUGH ACTIONS THAT FOSTER
AND STRENGTHEN ETHICAL
BUSINESS CONDUCT, WITH
INTEGRITY AND TRANSPARENCY
GRI 102-40 | 102-42 | 102-43
84 | A R 201 9 85

ODEBRECHT PDCIS Action Fronts

FOUNDATION
Innovation &
Created by Norberto Odebrecht in 1965 and of the Atlantic Forest and extreme social and Technology
maintained by Odebrecht S.A. as a private, non- economic challenges, the region has a Human
profit organization, the Odebrecht Foundation Development Index (HDI) below the national
is one of Brazil’s longest-serving corporate average, above-average rates of violent crime
foundations. Its mission is to educate for life, and low education levels, with only 19% of
for work, for values and for overcoming limits, students who begin elementary school making
inspired by the Odebrecht Entrepreneurial it to high school.
Technology (TEO). The institution works in
coordination with civil society organizations, The strategy of the Odebrecht Foundation is to
government agencies, partners and social apply its social technology through the PDCIS,
investors to promote sustainable rural with youth as the protagonists. The program is
development in the Southern Bahia, a region connected to the Sustainable Development Goals Economic Environmental
that concentrates the foundation’s activities. (SDGs) through its efforts to overcome global Development Conservation
challenges, such as eradicating poverty in all
Since 2003, it efforts have focused on the its forms, educating youth on producing goods
PDCIS - Program for
Program for Development and Growth Integrated in rural areas, the rational use and protection Development and Growth
with Sustainability (PDCIS), an initiative that of natural resources and strengthening the Integrated with Sustainability
Odebrecht Foundation
has contributed to social, economic and foundations of citizenship. The Odebrecht
environmental transformation in the region Foundation prioritizes six work fronts on an
of Southern Bahia, which is home to nearly integrated and synergic basis to promote
285,000 people, more than half of whom live sustainable rural development (see the diagram).
in rural areas. In a scenario of high biodiversity

Education for Social Cohesion

Sustainable & Mobilization
Development

Citizenship &
Governance

In 2018, the Odebrecht

Foundation mobilized partners
that invested R$ 12.4 million in
66,3% 33,7%
socioenvironmental initiatives IN BASIC IN ENVIRONMENTAL
in connection with the Program
EDUCATION EDUCATION
for Development and Growth
Integrated with Sustainability:
86 | A R 201 9 87

260 1.192 5.687

COMMUNITIES ACTIONS TO TONS OF FOOD
BENEFITTED MULTIPLY KNOWLEDGE produced by participants in the PDCIS.

from the foundation’s initiatives (seminars, field days, lectures)

in 19 municipalities that benefitted 10.635 people
directly or indirectly

Assessment of PDCIS Impacts

In 2018, the Odebrecht Foundation FOR EVERY YOUNG PARTICIPANTS THE BENEFITTED
YOUTH ASPIRE

R$ 1,00
conducted the Assessment of
PDCIS Impacts that confirmed were more active in their communities and MORE TO BECOME
transformations in the economic, less likely to leave rural life behind to seek ENTREPRENEURS,
social and environmental better urban living conditions. more strongly believe in education for
dimensions among the young invested in the PDCIS, R$ 2.13 returned entrepreneurship, with opportunities for
farmers supported by the program in benefits to the families supported. accessing new technologies.
and their families and communities.

The main results verified were:

RURAL PRODUCERS WHO
THE BENEFICIARIES The unemployment rate among
COMBINE AGRICULTURE WITH
the youth who graduated from the
REDUCED THEIR Rural Family Schools was THE RATIONAL USE
dependence on the federal
OF NATURAL

9,7%
welfare program Bolsa Familia by
resources obtain annual financial

65%
MORE INFORMATION
income on average

R$ 20,000
Details on the
evaluation of
impacts of PDCIS.
COMPARED TO

46,8%
higher than the control group.

.
Average annual income from
agriculture was nearly IN THE
CONTROL GROUP.
R$ 25,000
HIGHER THAN THAT
OF NON-BENEFICIARIES.
88 | A R 201 9 89

PRIVATE SOCIAL
INVESTMENT oluntary socioenvironmental investment by country 2018 R$ thousand Percentage

Brazil 37.377,6 92,9%

Our Businesses also carry out socioenvironmental refers to projects by Braskem. Considering the Argentina 10,1 0,0%
initiatives in their respective regions using either foundation’s investment, last year we voluntarily
Peru 721,1 0,5%
their own funds or drawing on government invested R$ 40.7 million in socioenvironmental
Mexico 964,8 2,4%
incentives. These funds amounted to R$ 27.8 initiatives, which is in line with the R$ 39.3 million
million, of which 90% was in Brazil and 75% invested in 2017. United States 668,0 1,7%

Germany 2,2 0,0%

Angola 452,6 1,1%

Dominican Republic 166,5 0,4%

Voluntary socioenvironmental investment by area in 2018 R$ thousand Percentage Panama 394,1 1,0%

TOTAL 40.756,9 100,0%

Vocational education 4.248,8 10,4%

Environmental education 6.780,0 16,6%

Entrepreneurship/Innovation 2.245,0 5,5%

Jobs and income generation 10.624,6 26,1%

Basic education 8.638,4 21,2%

Culture 1.616,7 4,0%

Health 419,2 1,0%

Community mobilization 841,8 2,1%

Infrastructure 1.291,5 3,2%

Sports/Recreation 2.730,6 6,7%

Human rights 339,1 0,8%

Other 981,2 2,4%

TOTAL 40.756,9 100,0%

90 | A R 201 9 91

WHAT IS THE GREATEST

CONTRIBUTION TO SOCIETY
MADE BY OUR PORTFOLIO
OF BUSINESSES?
 93

A R 2 0 1 8

OUR BUSINESSES
AND INVESTMENTS
DEVELOP INNOVATIVE
SOLUTIONS TO IMPROVE
PEOPLE’S LIVES
IN LINE WITH MACRO
TRENDS AND GLOBAL
COMMITMENTS TO
SUSTAINABILITY.
94 | A R 201 9 95

THE BUSINESS FOCUSES ON

INNOVATION IN PROCESSES AND
THE DEVELOPMENT OF SUSTAINABLE
CONSTRUCTION METHODS.

With operations in 18 countries, OEC provides high winds and lines snagging in vegetation. This
clients in the public and private sectors with innovative process was structured and shared in
services for inf rastructure projects in various the Destaque Awards 2018 and was the winning
sectors, such as transportation, energy, project in the environmental category.
agroindustry, mining and more. The activities
of the Business are guided by innovation in In Angola, the Laúca Hydroelectric Project
processes and the development of sustainable implemented a social and economic
construction methods. development initiative for 11 communities in
the region fthat lacked basic inf rastructure. To
In 2018, two projects in the energy sector engage local families, the AgroLaúca Project
demonstrated our team members’ capacity was created, focusing on promoting health,
to incorporate environmental and social sanitation, education, gender equality and
aspects into their activities. The f irst was the education for income generation and welfare.
use of drones to reduce the environmental
impacts f rom the installation of a stretch of Since 2014, investments by the project have
the transmission line f rom the Baixo Iguaçu improved the conditions of medical centers and
Hydroelectric Plant, which is still under water supply systems, supported sanitation and
construction in the state of Paraná, Brazil. vaccination campaigns and training of sanitary
agents , and supported family agriculture and
The methodology prevented the suppression of women’s entrepreneurship initiatives, as well as
vegetation in an area of 18,300 square meters. other initiatives to promote social integration and
The engineering team used an innovative local culture. The Laúca Hydroelectric Project,
technique with drones to string the lead lines which is currently in its f inal construction phase
that guide the installation of the permanent while commencing power generation, also has
transmission cable. The change required “Talk to Laúca,” a communication program that
technical adaptations to the traditional steps facilitates social dialogue and helps meet the
and presented additional diff iculties related to needs of local communities.

GRI 103-1 | 103-2 | 103-3

96 | A R 201 9 97

THE BUSINESS MANAGES AND PROMOTES

SUSTAINABILITY TO REDUCE ENVIRONMENTAL
IMPACTS AND ITS COSTS THROUGH
INNOVATIONS IN THE PLANNING, EXECUTION
AND CONSTRUCTION OF PROJECTS.
OR is a real estate developer that serves suppression of vegetation and the consumption
customers in the residential, commercial, hotel of natural resources, while contributing to the
and subdivision segments, among others. The conservation of local flora.
Business manages and promotes sustainability
to reduce environmental impacts and its costs The innovation represents a signif icant change
through innovations in the planning, execution and in the traditional use of exotic and commercial
construction stages . species in landscaping projects. The use of native
plants not only adds value to the biodiversity
Reserva Sauipe, a land development OR project, is that is naturally adapted to the local climate and
an example of this concept into practice through soil, but also cuts costs by reducing the need for
innovations in landscaping and conservation of the inputs, irrigation and maintenance.
native vegetation. It is located within the Sauípe
Complex area in in Mata de São João, Bahia, located In the project’s 1,500-square-meter nursery , the
85 km from the state capital Salvador. . The project, company cultivates seedlings of endemic and
which already produced over 65,000 seedlings, endangered species from the restinga, a local
works to achieve maximum preservation of native biome predominant in the region. This initiative
species rescued from the construction area or led to a reduction of around 60% in costs with the
through seeds, thus reducing impacts from the landscaping project.

GRI 103-1 | 103-2 | 103-3

98 | A R 201 9 99

THE LARGEST PRODUCER OF THERMOPLASTIC

RESINS IN THE AMERICAS, BRASKEM INVESTS IN
INNOVATIVE SOLUTIONS TO STRENGTHEN AND
EXPAND THE SUSTAINABILITY OF THE PLASTICS
VALUE CHAIN.

The largest producer of thermoplastic resins in the system for disposable plastic cups. All collected
Americas, Braskem invests in innovative solutions material is sent to partner recycling companies
to strengthen and expand the sustainability of the and transformed into post-consumer resin,
plastics value chain. In addition to its own activities, which is used to make new products, such as
the Business works with other actors to foster caps for cosmetics, household utensils and other
sustainable sustainable development in line with products. Other companies can join the program
Circular Economy Manifesto. the Circular Economy by making a financial contribution or creating a
Manifesto. The manifesto covers various fronts in reverse logistics system in their own organization.
innovation, reverse logistics and life cycle analysis
to develop new ways of producing and consuming, Wecycle also fosters engagement by the business
recover marine environments and promote more community in the topic of sustainability and
efficient use of natural resources . In 2018, this drives innovation in the sustainable use of
commitment was expanded with the creation of the plastics. Its initiatives include recycling plastic
Recycling & Wecycle Platform area, which carries out waste disposed of by consumers in large retail
initiatives related to the circular economy for plastics. chains and projects to incorporate resins in the
manufacture of bicycles, encouraging sustainable
One of the actions developed by the Wecycle urban mobility in major urban centers.
Platform is the reverse logistics and recycling

MORE INFORMATION
The Circular Economy Manifesto

MORE INFORMATION
Wecycle Platform and its initiatives

GRI 103-1 | 103-2 | 103-3

100 | A R 201 9 101

IN THE AREA OF DIVERSITY OF TEAM MEMBERS,

ATVOS WAS RECOGNIZED IN 2018 FOR THE
SECOND TIME, AT THE UN HEADQUARTERS IN
NEW YORK, AS ONE OF THE “BEST COMPANIES
FOR WORKERS WITH DISABILITIES”.
Operating in the sugar and ethanol industry for 12 resources. By acquiring an I-REC, companies can
years, Atvos is Brazil’s second largest producer of substantiate that they are offsetting emissions
ethanol and clean electricity from biomass. It also caused by fossil-based energy sources;
produces VHP sugar and exports products to over
20 countries. Its assets include nine agroindustrial • RenovaBio: with its knowledge of CO2 Emissions
units in the Brazilian states of São Paulo, Mato Management and its adoption of carbon
Grosso, Mato Grosso do Sul and Goiás. Its business intensity as an operating indicator, Atvos is
model drives a low-carbon economy, with products prepared to reap additional revenue gains with
that bring reductions over 5 million tons of carbon the implementation of the RenovaBio Program,
emissions per year through sustainable agricultural the first national public policy that guarantees
practices, by continuous productivity gains, by financial value for the carbon emissions avoided
worker’s safety and by respecting human rights with the use of biofuels instead of fossil fuels.
and the environment. In this context, Atvos creates
value through solutions that contribute directly to In the area of team members diversity, Atvos was
combatting climate change, which include: recognized in 2018 for the second time, at the UN
Headquarters in New York, as one of the “Best
• Emissions reductions: by means of changes in Companies for Workers with Disabilities”. The award is
land use resulting from the cultivation of sugar the result of the initiative with local communities that
cane in formerly degraded pasture areas. Atvos includes raising awareness among the company’s
reduced approximately 15 million tons of CO2 leaders, involving the local government and engaging
equivalent by land use management during the the local community to create alternatives for the
2017-2018 crop season. inclusion in the job market of persons with disabilities.

• I-REC: in 2018, the company made the first sale To connect its operations with global demands
of international renewable energy certificates for a more sustainable model for consumption
(I-RECs) for biomass in Brazil. I-REC is a certificate and economic growth, Atvos revealed in 2018
sold on an international platform that provides its Purpose: “To seek creative and profitable
large energy consumers with a guarantee that solutions for generating clean and sustainable
the energy was generated using renewable energy for the planet.”

GRI 103-1 | 103-2 | 103-3

102 | A R 201 9 103

OCYAN PROMOTES INNOVATION

AND SCIENTIFIC DEVELOPMENT IN
ITS VALUE CHAIN WHILE ENGAGING
LOCAL COMMUNITIES AND PARTNERS

Specializing in integrated solutions for the oil and construction of the prototypes. The challenge for
gas industry, Ocyan promotes innovation and the mechanical team was to create a support for a
scientific development in its value chain while precision ruler for conducting regular inspections of
engaging local communities and partners. One of the diesel engines axles on the drilling rigs. For the
the highlights of this model in 2018 was the Young subsea team, the solutions sought to confirm the
Mentoring program. The initiative is part of the compatibility of the Ocyan fleet’s connectors with the
School in Action Program, one of Ocyan’s social wellheads supplied by clients, operating at depths of
responsibility programs and the main platform for up to 3,000 meters, to facilitate preliminary analysis of
its private social investment. the operation and avoid delays.

The Young Mentoring project brings together youth Developed in 2018, Ocyan Waves is a platform
from #inovareaprender (a robotics program aimed created by the company to encourage and support
at undergraduate students ) with the company’s internal and external innovation initiatives for
engineering and subsea teams. Students at the capturing operational improvements. Its focus is
Federal University of Rio de Janeiro (UFRJ-Macaé) on efficiency gains, improving safety, supporting
participating in the #inovareaprender program the startup ecosystem and directly contribute to
received mentoring from professionals at Ocyan’s the new generation of suppliers to the oil and gas
Drilling Business Unit for the development of industry in Brazil.
operational solutions that led to the creation of
two prototypes for use on the company’s drilling Another highlight of 2018 was the completion of
rigs that met the demands of the mechanical and the first year of operation of the FPSO Pioneiro de
subsea construction teams. Libra, a joint venture with Teekay. In the period, the
vessel produced over 58,000 barrels of oil equivalent
The solutions were developed using a 3D printer and per day from a single well, setting a record in the
laser cutter donated by Ocyan to the Management offshore industry. Other exceptional results in
and Research Center at UFRJ-Macaé. From April to the first year of operation include zero recordable
October 2018, the mentors worked with students occupational accidents and no significant leaks of
through each phase, from development to oil or chemicals into the ocean.

GRI 103-1 | 103-2 | 103-3

104 | A R 201 9 105

OLI INVESTS IN THE DEVELOPMENT OF

INFRASTRUCTURE TO IMPROVE QUALITY
OF LIFE AND SAFETY.

OLI manages irrigation, energy and transportation The Highway Safety Program developed by IIRSA
assets in Peru and Colombia. The Business invests in the Sur in 2018 carried out ten awareness campaigns
development of infrastructure to improve quality of life in local communities and in the toll plazas that
and safety and promote development in the regions reached more than 160 drivers from freight
that benefit from the assets under its management. carriers. The initiative also conducted over 500
tests to check if drivers had ingested alcoholic
One of these assets is IIRSA Sur, a concessionaire beverages, which would put their own safety and
that manages 656 kilometers of highway between that of others at risk.
Cusco and Madre de Díos, in Peru. The highway
extends to the border with Brazil and is an important As a result of the action, IIRSA Sur registered a 70%
route for trade between the two countries. drop in accidents with victims compared to 2017.

GRI 103-1 | 103-2 | 103-3

106 | A R 201 9 107

THE BUSINESS WORKS CONTINUOUSLY

TO MANAGE ENVIRONMENTAL IMPACTS
AND CAPTURE GAINS IN EFFICIENCY
AND IN OPERATIONAL PERFORMANCE.

Specializing in the implementation, development As a contract requirement, the concessionaire Rota

and operation of integrated logistics and do Oeste also conducted a pilot project to assess the
mobility concessions, OTP operates in Brazil feasibility of using electric cars in traffic inspection
and contributes to advances in transportation activities. The replacement of internal combustion
infrastructure in major urban centers. The vehicles along the highway was proposed under
Business works continuously to manage the emissions mitigation strategy for reducing the
environmental impacts and capture consumption of fossil fuels.
efficiency gains and improvements in
operating performance. The program, in partnership with BYD, one of the
world’s largest electric car manufacturers, includes
In 2018, Rota do Oeste, a company in investment the installation of charging stations at the Cuiabá toll
portfolio of OTP and the administrator of plaza and tests of a cargo van. The program identified
850 kilometers of Highway BR-163, forged a significant environmental gains from avoiding the
partnership with the Federal University of consumption of fuels, lubricants and other fossil-
Mato Grosso (UFMT) to implement a pavement based products. However, the autonomy of electric
laboratory to research solutions for the vehicles is still short for operational requirements (250
development of asphalts made f rom reclaimed km) and their recharging time is long (1 hour and 30
asphalt pavement obtained f rom milling minutes). As such, large-scale use is still not feasible
discarded material removed during given the concessionaire’s operational area.
road resurfacing.
OTP, through its subsidiaries VLT Carioca and
The research considered the specific SuperVia, transports daily approximately 660,000
characteristics of highways in the state of Mato persons by electrically powered train and light rail
Grosso, such as soil, high temperatures and vehicle serving users in the city of Rio de Janeiro
intense traffic of freight vehicles. The goal is to and the region.
develop a high-quality, durable material from the
reuse of waste products previously discarded.

GRI 103-1 | 103-2 | 103-3

108 | A R 201 9 109

Odebrecht S.A. material topics

HOW WE PREPARED Topic Description

Related Sustainable
Development
THE ANNUAL REPORT Goals (SDGs)

Ethics, The topic is related to implementing the Policies and other

integrity and internal directives for conducting business activities based on the
transparency concepts of TEO, on Our Commitment and on the guidelines with
a view to developing frank and open channels of dialogue with all
Our Annual Report 2019 communicates clearly and stakeholders. In that year, we consolidated the stakeholders.

transparently to all our stakeholders the main results following sources in our materiality matrix:
Transforming Odebrecht S.A. contributes to the sustainable development
and experiences of Odebrecht S.A. in the period the business of society by participating in initiatives and collaborating with
from January 1 to December 31, 2018. We also include • Results from reputation surveys conducted environment institutions that work to foster a business environment based on
in the document relevant facts and aspects from the periodically by the holding company based on the integrity and to transform relations between government and
the private sector based on criteria grounded in ethics, integrity
first quarter of 2019 to provide timely information on RepTrack® methodology that involved civil society, and transparency.
the advances in our management. The publication government agencies, financial institutions, business
also presents information on the Businesses, which leaders, shareholders and team members Corporate Reviewing and strengthening the governance structure of the
governance holding company ensure the autonomy and self-sufficiency of the
reflect the significant economic, environmental and
Businesses by promoting the dissemination and practice of TEO
social impacts generated by the Odebrecht Group. • Individual interviews with the Chief Executive and of the Policies through the board of directors of each Business,
Officer and the Functional Support Officers (RAFs) of guided by integrity and transparency. At the same time, they pave
the way for the formation of companies and new partnerships
In line with best market practices and our Odebrecht S.A. within the scope of the Businesses.
permanent commitment to transparency when
reporting to society, we adopt as references for • Individual interviews with ten market experts Portfolio Investment decisions at Odebrecht S.A. are based on a
diversification meticulous assessment of the risks and opportunities present in
the document’s contents the GRI Standards, Core on the risks and opportunities associated with the
and risks the different sectors and operational contexts of the Businesses.
Option, and the references to the of Sustainable business model and operational context of the Such assessments consider economic, social and environmental
Development Goals of United Nations. The scope Odebrecht Group aspects, with a focus on optimizing resources and contributing to
sustainable development.
of the report is the same as that of the financial
statements of the holding company and none of • Internal policies and directives Financial The capacity of Odebrecht S.A. to create and share value with its
the data was restated. Analyses of these inputs resulted in the definition resilience shareholders, team members, suppliers and other stakeholders
is directly associated with the efficient management and
of seven material topics considered most relevant
supervision of the Businesses to enable the continued and
The content was defined based on a materiality to both the strategy of Odebrecht S.A. and the sustainable growth of the Odebrecht Group.
process conducted in 2017, which included analysis stakeholders with which the holding company and
of documents and the direct engagement of the Businesses interact. Commitment to Through internal the Policies and internal directives, Odebrecht S.A.
team members guides the practice of the principles and concepts of TEO in team
members’ day-to-day activities and promotes the eight behaviors
expressed in the People Policy and the disciplined application
of the Action Program (PA) cycle. Through the board of directors
of the Businesses, the holding company also accompanies the
implementation of people policies in each case, especially the
integration of young professionals, the people development
programs and the leader development and succession programs

Innovation for Through investments in the portfolio of Businesses and in

a sustainable transversal initiatives, such as the Destaque Awards and the
economy Odebrecht Award for Sustainable Development, Odebrecht S.A.
MORE INFORMATION contributes to sustainable innovation and to the development
Previous reports from Odebrecht S.A. of new solutions and technologies for a low-carbon economy,
Comments, suggestions, questions or criticism may accompanied by lower social and environmental impacts.
be sent to comunicacao.holding@odebrecht.com Interaction with research centers, universities and other research
and development institutions is important for strengthening
innovation capacity.

GRI 102-40 | 102-42 | 102-43 | 102-45 | 102-46 | 102-48 | 102-50 | 102-51 | 102-52 | 102-53 | 102-56 GRI 102-44 | 102-47 | 102-49 | 103-1
110 | A R 201 9 111

Supplementary Information to GRI indicators 102-41 | Collective bargaining agreements report coverage indicators for the risk assessments
covered 100% of team members with employment related to corruption and human rights.
102-3 | The headquarters of Odebrecht S.A. is reflecting the termination of contracts at OEC, contracts managed by the Odebrecht Group in
located in São Paulo. Ocyan and OR. All Odebrecht Group team members Brazil in 2017, except for apprentices, interns and 206-1 | No Business or Investment of the Odebrecht
work full time and the following information is officers specified in the bylaws. In other countries, Group is a defendant in any lawsuit involving anti-
102-8 | At the end of 2018, the Odebrecht Group consolidated in spreadsheets by the holding after the respective labor laws and specific trade union competitive, antitrust or monopolistic practices.
was composed of a total of 47,800 team members. being extracted, by the Businesses, from three main standards are followed on a case-by-case basis.
The number is 17% lower than at the end of 2017, systems (SAP, APDATA and Peoplesoft). 302-1 | Considering the group of Businesses,
102-54 | This report was prepared in accordance energy consumption in 2018 was 3% lower than in
with the GRI Standards: Core Option. the previous year. The reduction occurred mainly
Total employees of the Odebrecht Group 2018* 2017 2016 in energy generation from fuels and was driven
BY GENDER 205-1 e 412-1 | The risk management process of primarily by OEC. The percentage of renewable
Odebrecht S.A. is currently in the implementation fuels remained relatively stable in relation to the
Men 39.850 48.595 66.377
phase. Therefore, it is not possible, at this time, to historical data series.
Women 7.985 8.994 13.239

TOTAL 47.835 57.589 79.616

BY REGION Energy consumption (GJ)* 2018 2017** 2016

Brazil 31.519 37.063 47.469 A. ENERGY GENERATED BY FUEL CONSUMPTION

Midwest 9.209 9.241 9.970 Gasoline 76.421 96.156 194.540

Northeast 4.415 5.165 7.743 Diesel fuel 3.094.410 4.605.141 7.366.061

North 497 460 1.922 CNG, propane and other flammable gases 112.379.457 123.209.764 119.959.614

Southeast 15.127 19.226 24.427 Ethanol 71.412 67.886 2.176

South 2.271 2.971 3.407 Natural gas 49.926.374 48.319.856 35.253.394

International 16.299 20.526 32.147 Liquefied Petroleum Gas (LPG) 358.886 20.305 32.748

Latin America 12.362 16.280 20.311 Sugarcane bagasse 67.708.351 65.272.323 70.338.865

North America 1.896 1.088 1.078 Other fuels 24.845.691 23.728.477 32.850.587

Europe 267 239 262 SUBTOTAL 258.461.002 266.319.916 265.997.985

Africa 1.765 2.823 10.284 Percentage of energy generated

26% 25% 26%
by renewable fuel sources
Asia 9 96 212
B. ENERGY PURCHASED
TOTAL 47.818 57.589 79.616
Electricity 23.000.296 23.076.781 21.081.671
*Data by region does not include in 2018 the 17 team members with temporary work contracts, hence the total differs from the chart of number
C. ENERGY SOLD
of team members by gender.
Energy sold 9.082.578 9.592.733 7.801.583

D. TOTAL

Total energy consumed (A + B-C) 272.378.720 279.803.964 279.278.073

*Excludes fuel consumed by the operational fleet of OR, which is the responsibility of contractors.
**Fuel data for 2017 was restated due to a review at Ocyan.
112 | A R 201 9 113

303-1 e 303-3 | In 2018, 41 million cubic meters of water were reused in the 305-1, 305-2, 305-3 e 305-4 | Analysis on a consolidated basis of the greenhouse gas inventories
Businesses, corresponding to 36.7% of the total withdrawn. Atvos and Braskem of the Business shows significant variations in scopes 2 and 3. In the former case, the 24% decrease is
are responsible, with virtually equal shares, for 99% of the volume reused. due the reduction in the emissions factor of the national power grid, which reflects the less frequent
activation of thermal power plants in the country and the consequent increase in the percentage of
renewable energy in the national energy matrix. In the case of scope 3 emissions, the 36% increase is
Water withdrawal (‘000 m³)* 2018 2017 2016 related to the expansion in the scope of inventories, particularly at Braskem, to improve the mapping of
Surface water 51.212 57.879 275.087 emissions in the value chain.

Groundwater 5.119 2.304 56.052

Subtotal of water withdrawn directly 56.331 55.184 340.839

GHG emissions inventory (tCO2e)* 2018 2017** 2016
Municipal water supply or from other SCOPE 1
54.667 56.849 53.787
specialized companies
Direct emissions 10.976.612 11.041.111 10.535.581
Runoff 1 3 26
Direct biogenic emissions 5.627.116 5.476.757 6.155.776
Tanker trucks 175 217 603
Direct biogenic removals 1.439.992 1.372.927 nd
Reuse 671 785 2.963
SCOPE 2
TOTAL 111.845 113.039 398.219
Indirect emissions from energy purchased 827.208 1.084.756 1.039.061
*The breakdown of surface and groundwater excludes OEC, which controls both variables on a consolidated basis. The data for this Business are SCOPE 3
included in the line “Subtotal of water withdrawn directly.”
Indirect emissions – external sources 29.752.554 21.845.313 19.232.759

Indirect biogenic emissions 579.810 578.630 591.778

201-1 | The value added distributed by the Odebrecht Group in 2018 amounted to R$XX billion. Indirect biogenic removals 0 173 nd

*In 2017 and 2018, Odebrecht Transport did not conduct an inventory of its GHG emissions. Figures for 2016 exclude OR, which did not conduct
Distribution of value added in 2018 (R$ million)* an inventory of its emissions in that year, and Braskem’s Mexico Complex, which was in the stabilization phase.
** Scope 1 and 3 data for 2017 were restated due to the review at Ocyan.
Payroll 6.176

Taxes, charges and contributions 8.021

Remuneration of loan capital 15.369

GHG emissions intensity (gCO2e/R$ gross revenue) 2018 2017 2016
Remuneration of equity capital (5.960)
Scope 1 GHG emissions intensity (kgCO2e/R$ gross revenue) 0,127 0,186 0,120
Total value added distributed 23.606
Scope 1 and 2 GHG emissions intensity (kgCO2e/R$ gross revenue) 0,481 0,199 0,134

*Figures for prior years are not available. Scope 1, 2 and 3 GHG emissions intensity (kgCO2e/R$ gross revenue) 0,481 0,474 0,003
114 | A R 201 9 115

306-2 | The 19% decrease in the total volume of waste disposal was mainly driven by the lower volume of 401-1 | For every one new hire, there were 1.6 dismissals in 2018, compared to the ratios of 1.4 and 2.2 registered in
waste generated by OEC, following a revision of its construction project portfolio. 2017 and 2016, respectively.

Waste disposal (tons)* 2018 2017 2016 Number of Number of Turnover

Turnover in 2018 Hiring rate*
HAZARDOUS WASTE new hires terminations rate**
Recovery 1.786 4.653 297 BY GENDER

Co-processing 810 442 1.812 Women 1.266 1.339 2,6% 3,8%

Co-processing/re-refining 612 339 0 Men 5.371 9.630 11,2% 4,2%

Reverse logistics or specific treatment 124 1.413 0 CONSOLIDATED 6.637 10.969 13,9% 4,2%

Decontamination 29 39 0 BY AGE BRACKET

Incineration/detonation 7.824 6.226 2.220 Up to 25 years old 1.863 2.138 3,9% 7,5%

Recycling/reconditioning 35.629 31.439 1.343 26 to 35 years old 2.381 3.998 5,0% 4,1%

Reuse (oily water) 2.316 0 0 36 to 45 years old 1.607 2.923 3,4% 6,6%

Other 10.332 11.662 5.178 46 to 60 years old 734 1.642 1,5% 2,3%

TOTAL 59.462 56.213 48.185 61 years and older 52 268 0,1% 0,7%

NON-HAZARDOUS WASTE CONSOLIDATED 6.637 10.969 13,9% 4,2%

Landfill for regular/industrial and inert waste 68.503 161.690 565.118 BY REGION

Recycling 144.364 84.608 1.222.441 Brazil 4.337 6.589 9,1% 6,6%

Recovery 1.552 1.756 101 International 2.300 4.380 4,8% 6,1%

Co-processing 1.063 6.006 7.181 CONSOLIDATED 6.637 10.969 13,9% 4,2%

Composting 16.093 7.949 75.952 *Hiring rate = number of new hires divided by average headcount in period.

Fuel source 0 0 0 **Turnover rate = [(number of new hires + number of terminations)/2 / (employees on first day of year + employees on last day of year)/2] x 100

On-site storage 48 66 0

Granulated and discharged at sea 205 0 45

415-1 | Odebrecht S.A. does not make financial contributions to politicians and political parties, as explicitly
Incineration 880 2.455 2.482 prohibited by our Policy on Compliance with Ethics, Integrity and Transparency. According to the policy, such
OTHER 278.688 362.739 1.937.324 contributions are permitted only in countries where it is legal and with prior approval by the board of directors and
broad disclosure to the public.
*Waste from Ocyan’s offshore production area is managed by the client. In 2016, it was not possible to break down Braskem
waste by disposal method.
116 | A R 201 9 117

GRI CONTENT INDEX

GRI Standard Indicator Page Omissions GRI Standard Indicator Page Omissions
GRI 101 | Foundation 2016 GRI 101 | Foundation 2016
General disclosures
General disclosures
Stakeholder engagement
Organizational profile
102-40 | List of stakeholder groups 82 e 108
102-1 | Name of the organization 24
102-2 | Activities, brands, products and services 78 e 79 102-41 | Collective bargaining agreements 111

102-3 | Location of head office 110 102-42 | Identifying and selecting stakeholders 82 e 108
102-4 | Location of headquarters 24 e 25 102-43 | Approach to stakeholder engagement 82 e 108
102-5 | Ownership and legal form 24 102-44 | Key topics and concerns raised 109
102-6 | Markets served 24 e 25 Reporting practice
102-7 | Scale of the organization 24 102-45 | Entities included in the consolidated
108
102-8 | Information on employees and other workers 64 e 110 financial statements

102-9 | Supply chain 54 102-46 | Defining report content and

108
topic boundaries
102-10 | Significant changes to the organization and/
78
or its supply chain GRI 102 | 102-47 | List of material topics 109
102-11 | Precautionary Principle or approach 58 e 59 General disclosures 2016 102-48 | Restatement of information 108
102-12 | External initiatives 73 102-49 | Changes in reporting 109
GRI 102 | 102-13 | Membership of associations 73 102-50 | Reporting period 108
General disclosures 2016 Strategy 102-51 | Date of most recent report 108
102-14 | Statement from senior decision-maker 22 e 23 102-52 | Reporting cycle 108
102-15 | Key impacts, risks and opportunities 58 e 59
102-53 | Contact point for questions
Ethics and integrity regarding the report 108
102-16 | Values, principles, standards and
48, 49 e 56 102-54 | Claims of reporting in accordance with the
norms of behavior
GRI Standards 111
102-17 | Mechanisms for advice and concerns
56 116, 117, 118
about ethics 102-55 | GRI content index
e 119
Governance
102-56 | External assurance 108
102-18 | Governance structure 32, 33 e 34
102-23 | Chair of the highest governance body 34
102-24 | Nominating and selecting the highest
34
governance body
102-25 | Conflicts of interest 34
102-30 | Effectiveness of risk management processes 35

GRI 102-55
118 | A R 201 9 119

GRI Standard Indicator Page Omissions GRI Standard Indicator Page Omissions
Material topic | Ethics, integrity and transparency Material topic | Commitment to team members

103-1 | Explanation of the material topic and its 48, 49, 50 e 103-1 | Explanation of the material topic 62, 63, 68, 69,
boundaries 109 and its boundaries 70 e 109
GRI 103 |
Management approach 2016 103-2 | Management approach and its components 48, 49 e 50 GRI 103 | 103-2 | Management approach and 62, 63, 68, 69
103-3 | Evaluation of the management approach 48, 49 e 50 Management approach 2016 its components e 70

205-1 | Operations assessed for risks related 111 103-3 | Evaluation of the 62, 63, 68, 69
to corruption e 70
GRI 205 | Anti-corruption 2016 management approach
205-2 | Communication and training about 52
401-1 | New employee hires and 115
anti-corruption policies and procedures GRI 401 | Employment 2016
employee turnover
Material topic | Transforming the business environment
404-1 | Average hours of training per 68
103-1 | Explanation of the material topic 60, 61 e 109
GRI 404 | year per employee
GRI 103 | and its boundaries
Training and education 2016 404-2 | Programs for upgrading employee 68
Management approach 2016 103-2 | Management approach and its components 60 e 61
skills and transition assistance programs
103-3 | Evaluation of the management approach 60 e 61
GRI 405 | Diversity and equal 405-1 | Diversity of governance bodies 34, 64, 65, 66
GRI 206 | 206-1 | Legal actions for anti-competitive behavior, 111
opportunity 2016 and employees e 67
Anti-competitive behavior 2016 anti-trust and monopoly practices
Material topic | Innovation for a sustainable economy
GRI 415 | Public Policy 2016 415-1 | Political contributions 115
103-1 | Explanation of the material topic 72, 94, 96, 98,
Material topic | Corporate governance
and its boundaries 100, 102, 104,
103-1 | Explanation of the material topic 32, 33, 34, 35,
106 e 109
and its boundaries 40, 41, 42, 43
103-2 | Management approach 72, 94, 96, 98,
e 109 GRI 103 |
GRI 103 | and its components 100, 102, 104
103-2 | Management approach and its components 32, 33, 34, 35, Management approach 2016
Management approach 2016 e 106
40, 41, 42 e 43
103-3 | Evaluation of the 72, 94, 96, 98,
103-3 | Evaluation of the management approach 32, 33, 34, 35,
management approach 100, 102, 104
40, 41, 42 e 43
e 106
Material topic | Portfolio diversification and risks
103-1 | Explanation of the material topic 78, 79 e 109
GRI 103 | and its boundaries

Management approach 2016 103-2 | Management approach and its components 78 e 79

103-3 | Evaluation of the management approach 78 e 79

GRI 412 | 412-1 | Operations that have been subject to human 111
Human Rights assessment 2016 rights reviews or impact assessments

Material topic | Financial resilience

103-1 | Explanation of the material topic 78, 79, 80 e
GRI 103 | and its boundaries 109

Management approach 2016 103-2 | Management approach and its components 78, 79 e 80
103-3 | Evaluation of the management approach 78, 79 e 80

GRI 201 | 201-1 | Direct economic value generated 112

Economic performance 2016 and distributed

GRI 419 | Socioeconomic 419-1 | Non-compliance with laws and regulations in 60

compliance 2016 the social and economic area

GRI 102-55