ContentsSince 1999, Americanas.com has been Latin America's largest and most complete online store....
Transcript of ContentsSince 1999, Americanas.com has been Latin America's largest and most complete online store....
Contents
Introduction ____________________________________________03
Message from Management__________________________________05
Organizational Profile______________________________________08
The Company_______________________________________09
Diversified portfolio___________________________________12
Clients: Our greatest asset______________________________14
Governance________________________________________19
People Management_______________________________________25
People who make a difference____________________________26
Essential training____________________________________27
Investing in talent____________________________________29
Valuing talent_______________________________________29
Socio-Environmental Management_____________________________32
Green Company_____________________________________33
GHG emissions profile_________________________________36
Opportunities for eco-efficiency__________________________39
Corporate citizenship__________________________________41
Economic Performance____________________________________44
Deepening the customer relationship___________________________45
Financial results_____________________________________45
GRI Content____________________________________________49
About the report_____________________________________50
GRI Index_________________________________________55
Masthead and Corporate Information___________________________68
Introduction
For the second consecutive year, we are pleased to present our sustainability report
in accordance with the standards of the Global Reporting Initiative (GRI). For this
second release, we have adapted to the latest version of these standards: G-4. The GRI
is a non-governmental organization, with head offices in Amsterdam, The Netherlands.
Based on the practical application of the concept of sustainability into corporate
strategies, GRI reporting standards are, globally, among the most widely accepted and
recognized.
Like other large companies around the world, we have voluntarily adopted the GRI
model to depict our economic, social and environmental performance in a more
comprehensive manner. We believe this template strengthens and improves the
distribution of information about our best practices as they relate to the
implementation of sustainability in corporate management.
Accordingly, we identify with the GRI's goals while we also are progressing in terms
of transparency, allowing us to enhance our communication channels, of which this
report is a highlight, and whose objective is to strengthen our dialogue with key
stakeholders and the society at large. This is how we would like to share information
about our progress and challenges.
Message from Management
Corporate guidelines orient our sustainability management
B2W Digital experienced great advances in 2013. We are committed to strengthening
corporate management that is oriented along guidelines for sustainability, as well as
investments in tools, processes and solutions, and the continuous development of our
associates.
In 2013, we completed the first stage of a three-year investment plan (2013, 2014 and
2015), which is addressing four strategic acquisitions: three technology companies that
specialize in systems development – Uniconsult, Ideais and Tarkena – and a delivery
firm that specializes in the fulfillment of e-commerce orders – Click Rodo. In
continuance of our strategy to build closer ties to our customers, we have begun
operations at three new distribution centers (DCs), located in the states of Minas
Gerais, Pernambuco and Rio de Janeiro. The Company currently has seven DCs with
seven others being readied to open before the close of 2015. The new CDs have
generated direct and indirect employment, and are promoting the development of
surrounding regions. We give preference to hiring local labor and, as we believe in the
growth potential of Brazil, we will continue investing in the country.
During 2013, the Company posted strong growth and improved its operations, all the
while keeping its customers as the focus of its attentions. B2W Digital reported
consolidated gross revenues of approximately R$ 7 billion, a 28.5% increase over the
previous year.
We are, therefore, publishing, for the second straight year, our Sustainability Report
based on the model of the Global Reporting Initiative (GRI), an international
organization that has developed the most recognized and widely adopted standard in
use among the world's largest companies. With this report, we have taken a step
forward by adopting G-4, the most updated and advanced version of the GRI.
Another important change in the scope of our social, environmental and economic
management in 2013 – and something about which we are very proud – was our
joining the United Nations Global Compact. This initiative aims to encourage
companies to commit themselves to the best corporate practices relating to respect for
human rights, the environment and business ethics.
In our quest for increased eco-efficiency in our activities, we also celebrated another
significant achievement in 2013, when we opened BIT (B2W Innovation and
Technology), our new building located in Rio de Janeiro's port district. BIT was
completely renovated in accordance with the quality standards of LEED (Leadership in
Energy and Environmental Design). The market has increasingly adopted this
international certification of best environmental practices for buildings – from the
design phase to construction to long-term use.
Everything we do at B2W Digital is directed toward providing our customers with the
best possible shopping experience. In recognition of our efforts, we have received a
number of significant industry awards. It is noteworthy that our associates are
considered a very important asset to our business and we recognize that we have, on
our side, the best people willing to support our vision to be "the largest and favorite
digital company in Latin America." In this regard, we constantly invest in the
development of our associates. Their talents are part and parcel of an organizational
culture characterized by meritocracy and results-oriented performance.
While we are very pleased with how much we have accomplished, we know that we
have much more that we can contribute to the development of people, regions of the
country, and Brazil itself.
MANAGEMENT
Organizational Profile
The Company
With a portfolio consisting of brands and diversified businesses, B2W Digital –
created, in 2006, from the merger of Americanas.com and Submarino – is the
e-commerce leader in Latin America.
Since its inception, it has achieved great strides with its unique multi-channel multi-
brand, multi-business model. The Company operates through the Internet, telephone
sales, catalogues, kiosks and television. [G4-3]
Its shares are traded on the Brazilian Securities, Commodities and Futures Exchange
(BM&FBOVESPA) and is listed, under the BTOW3 ticker, on the Novo Mercado (New
Market) segment, which demands the highest level of corporate governance in Brazil.
Lojas Americanas S..A owns approximately 62.3% of the Company's shares. [G4-7]
B2W Digital owns the Americanas.com, Submarino, Shoptime and SouBarato
brands, as well as the B2W Viagens, Ingresso.com and Submarino Finance subsidiaries.
[G4-4]
National and international presence
Besides the Company's headquarters in the city of Rio de Janeiro, B2W Digital
maintains seven distribution centers, which are located in the states of São Paulo,
Pernambuco, Minas Gerais and Rio de Janeiro. However, its presence goes beyond
Brazil. Ingresso.com operates in Argentina, Mexico and Chile, while B2W Viagens
operates in Argentina. [G5-5, G4-6, G4-8, G4-9]
Mission
To fulfill people’s dreams and satisfy their consumption needs, saving them time and
money, and exceeding their expectations.
Vision
To be the largest and best-loved digital company in Latin America.
Values
To have the best people
To be a good "business owner"
To strive for operational excellence
To be customer-focused
To do more and better every day
To be results-driven
Competitive advantages
Best digital team in Brazil
Technology and Logistics Platform
Low-cost operations
Wide variety of products
Management model
Quality of services
Experienced management with strategic vision
Awards and recognition
We were immensely pleased with the awards we received in 2013. The Company placed
first in four categories of the Reclame Aqui (Complain Here) award in recognition of its
service quality, with Americanas.com winning in the E-Commerce: Large Operations –
Electronics and Ingresso.com winning the Internet: Ticket Sales award. Submarino
won in the Tourism and Leisure: Services category, while Blockbuster Online was the
winner in the Internet: Services category.
B2W also received recognition from two other major awards in 2013. The Internet
Retailer Award, an annual e-commerce award for Latin America, ranked B2W first in
Latin America, while Americanas.com won, for the seventh consecutive year, the
Datafolha Institute's Top of Mind Internet award in the e-commerce category.
Such acknowledgement of from society is a reason to celebrate and be proud of the
efforts of our team. These awards also serve as motivation for us to continue doing
more and making improvements every day.
Learn more about the Company's profile on its website: http://www.b2wdigital.com/institucional/perfil.
Diversified portfolio
The Company has gradually expanded its areas of activity, driven mainly by
expanding access to digital technologies.
Americanas.com
The largest store. The lowest prices.
Since 1999, Americanas.com has been Latin America's largest and most complete
online store. The brand, voted by consumers as being #1 in customer service, offers
more than 500,000 products that can be purchased on its website, via telephone sales,
and through more than 700 kiosks set up inside Lojas Americanas’ brick-and-mortar
stores. Beyond this, the Company's delivery, travel, mobile app and B2B services,
among many others, are contributing to a unique and increasingly complete shopping
experience.
Submarino
The products you enjoy and the best service on the Internet.
Submarino – a pioneer in online shopping and a benchmark for technology and
innovation – offers over 30 categories of products through the Internet, telephone
sales, a mobile app and catalogues, with a strong emphasis on the sale of books, games,
DVDs, electronics, information technology, telephony devices, fashion and online
services. In addition, Submarino has been strengthening its brand through additional
offerings, such as Submarino Viagens, B2B services and the Submarino (credit) Card.
Shoptime
Unique products and live demonstrations.
Shoptime is the top Brazilian home shopping channel (TV sales), which also
operates via the Internet, catalogue and telephone sales. The focus of the brand is on
integration between its various sales channels with the goal of providing customers the
best shopping experience possible. Shoptime's inventory emphasizes products for the
home, which includes four of its own brands: Casa & Conforto, Fun Kitchen, La Cuisine
and Life Zone.
SouBarato
SouBarato is B2W Digital's outlet shopping website that offers a wide range of top
brand products at discount prices, which are lower than the market average. The site
sells new and repackaged products, in perfect condition, at discounts of up to 70%.
Launched towards the close of 2011, SouBarato's wide and varied product assortment
stretches across more than 20 categories, and includes smartphones and cell phones,
computers and accessories, TVs and consumer electronics.
B2W Viagens
B2W Viagens operates under the Americanas Viagens, Shoptime Viagens, Milevo,
Submarino Viajes and Submarino Viagens brands, the latter having won in 2013, by
popular vote and for the third time, as the provider of the best customer service and for
being the Best Online Travel Agency in Brazil. B2W Viagens' sites have partnered with
over 750 airlines, 200,000 hotels and 4,000 attractions worldwide.
Ingresso.com
With over 5 million customers, Ingresso.com, Brazil's largest online ticket vendor,
offers the convenience of secure ticket sales via its website, telephone sales and apps for
iPhone, Android and Facebook. In addition to being a leader in the virtual world, the
brand's new software, Arena, launched in 2013 and intended for use within Brazil's
largest ticket outlets and box offices, is the most intelligent strategic management tool
on the market, which is allowing for the further strengthening of the brand's presence.
Submarino Finance
Submarino Finance offers the Submarino Mastercard credit card, which offers
special advantages via the Submarino website, such as discounts, exclusive installment
payment scheduling, differentiated credit limits, and the Leagues (customer loyalty)
Program. Over the course of 2013, we surpassed the 830,000 cards mark and achieved
a 38% sales share via the Submarino website.
Clients: Our greatest asset
We offer a distinctive shopping, delivery and customer service experience to
strengthen our bonds with consumers.
B2W's strategy is to form increasingly closer ties to customers by offering the best
shopping experience, as well as the best delivery and customer services possible:
Best shopping experience: Through our websites, to offer the best products, the best
prices and the best navigation, facilitating the entire purchasing process for our
customers.
Best delivery service: We want to increasingly be closer to where our customers live,
which will allow us to make deliveries faster and more reliably.
Best customer service: We want to delight our customers by being responsive and
efficient in resolving problems that arise.
Investments
We have adopted an investment plan whose main objective is to enable the growth
and improvement of our operations.
Over the course of 2013, 2014 and 2015, the Company will invest over R$ 1 billion in
logistics, technology and innovation, with the opening of at least ten new distribution
centers.
Logistics
B2W Digital has been constantly investing in optimizing its logistics systems and
supply chain.
In keeping with its investment plan, the Company acquired the transportation firm,
Click Rodo Entregas Ltda., which has the best e-commerce delivery operations in
Brazil.
To forge a closer relationship with its customers and provide the best delivery service
possible, in October 2013, B2W Digital opened three new distribution centers (in the
states of São Paulo, Minas Gerais and Pernambuco), which increased the Company's
storage capacity by 60%. These three facilities replaced existing distribution centers,
which were located in the same states, but had less capacity. Currently, B2W operates
seven distribution centers (in the states of São Paulo, Rio de Janeiro, Minas Gerais and
Pernambuco). Also in line with the Company's announced investment plan, at least
seven new distribution centers will be opening before the close of2015. [G4-13]
Beyond this, the Company has established strategic alliances with major carriers
across the country to ensure its ability to fulfill its commitment to offer the best level of
customer service.
Technology
Consistent with the Company's investment plan and its strategy to be a benchmark in
the technology and Internet market, B2W Digital acquired, in 2013, three tech firms
that specialize in the development of e-commerce systems and solutions. As a result,
the Company has doubled the size of its technology/Internet team, which, with over
600 engineers, is currently the largest in Latin America. [G4-13] The following are the
main highlights of the acquired companies:
Uniconsult: Order control optimization (shipping and returns), systems for the
management of multiple distribution centers, and development of specific systems
for marketplace transactions;
Ideais Tecnologia: Development and optimization of online sales platforms,
B2B/BB2C and mobile systems;
Tarkena: Optimization of search systems and algorithms for freight management.
Investments in technology platforms in the areas of operations and logistics,
television, customer service and telesales are aimed at improving operational quality
and efficiency to provide an even better shopping experience for our customers.
Last year, several projects, ranging from improvements in the design of the
technological platform to new functionalities, were implemented.
Recently launched projects include the following highlights:
[B] Seller web services platform: Platform for the creation of online stores and
backoffice/ERP integration systems;
KM de Vantagens online store: B2W Digital is operating the KM de Vantagens
e-commerce platform through its Shoptime brand;
Four own brands: Newme, Meemo, Topdesk and Orb, which are available via the
Americanas.com, Submarino and Shoptime websites;
SouBarato's new website: The new site has a new visual identity, and is more
dynamic and interactive.
New Submarino website: New tools, new layout and more intuitive;
New versions of Americanas.com, Submarino and Shoptime mobile
apps: Versions available for all smartphone operating systems;
Product recommendations in Americanas.com and Shoptime: Products
are recommended based on browsing history and customer purchases;
Facebook sharing button: With a single click, customer can share purchase
information on Facebook;
New "autocomplete" feature for searches conducted on
Americanas.com, Submarino and Shoptime: More relevant results,
returning most-clicked items, best sellers and latest products;
Frequently asked questions and answers (FAQ) system for
Americanas.com: Offers rapid responses to frequently asked customer
questions;
Product evaluation tool: New, easier and faster process;
Shoptime: Shoptime customers can now see, via the website, the latest products
being offered on TV, allowing for greater interaction between the brand's different
sales channels.
Privacy concerns
We recognize that our customers' privacy and the protection of their personal
information is critical in the digital environment. Accordingly, we have invested heavily
in technology and innovation, establishing a specialized, information technology (IT)
team whose duties involve ensuring a safe shopping environment through the use of
the best data protection and information use mechanisms, and strengthening our
technology platforms such that they are constantly addressing market challenges
related to these issues.
Corporate actions taken to resolve problems and issues related to these matters
always take place at management level administrative. This said, in 2013, we did not
record any cases of legal or regulatory non-compliance, or any complaints regarding
breaches of customer privacy or data loss. [PR8]
Direct contact
As our customers are our greatest asset, we invested to build closer ties with them
and offer them services of the highest quality. We believe that to ensure shopping
experiences that exceed expectations, offering the best prices and products, we must
ensure navigational ease on our websites, as well as fast and reliable delivery. In this
manner, we can delight our customers and find a warm place in their hearts.
To ensure that we are building close ties to our clients and guaranteeing customer
satisfaction, in 2013, we made great efforts to further facilitate customer contacts and
enhance various contact channels, through integration and communication
activities. We have improved existing systems dedicated to responding to questions,
suggestions or complaints from consumers, which have been submitted to management
bodies, and posted on social media and websites, such as Reclame Aqui (Complain
Here).
As part of the advancement process, we have created internal groups that specialize
in resolving cases submitted to particular departments of the Company. Additionally,
we have taken a leadership role in pioneering the creation of the B2W Resolve project.
This initiative provides yet another contact channel for the resolution of potential
conflicts, such that customer problems can be resolved more quickly, without the
necessity for these to wind up in the court system.
These initiatives have a positive impact on our relationship with customers. As a
result, their trust and satisfaction with the Company is deepened. This, in turn, makes
us enthusiastic about our initiatives and confident that we are on the right track.
The measures we have already referenced reinforce the Company's commitment to
complying with the pronouncements that appear in the Consumer Protection Code and
the Electronic Commerce Decree (Decree No. 7,962 of March 15, 2013).
We would like to note that, in 2013, no cases of non-compliance with regulations and
voluntary codes concerning marketing communications were recorded. [PR7]
Quality control
To establish a procedure to satisfy certification standards and quality control for our
products and services, in 2014 we will create a direct communication channel with the
Company that will directly address health and safety concerns. To accomplish this, we
will rely on a specific sector, which manages certifications from Brazil's National
Institute of Metrology, Standardization and Industrial Quality (INMETRO), for the
implementation of internal verification systems. The initiative will strengthen the
control of administrative rules, help us to take a proactive stance against potential
problems and serve to overhaul, adapt and otherwise strengthen the specific manner by
which we handle quality control issues.
In 2013, no significant fines were levied nor actions taken against us as regards
noncompliance with laws and regulations related to information disclosure about and
the labeling of products and services. [PR2]
Governance
[G4-34]
Our practices are guided by the rules of the BM&FBOVESPA and its
Novo Marcado (New Market), the segment that focuses on
transparency and sustainable management.
B2W is incorporated under the rules established by the Brazilian Securities,
Commodities and Futures Exchange (BM&FBOVESPA) and its Novo Mercado, the
segment that demands the highest level of corporate governance in Brazil – which
includes an ownership structure composed exclusively of common shares and the
election of independent members to Boards of Directors. B2W's Board of Directors
consists of seven members, four representatives of the controlling shareholder and
three independent members.
The processes of going public and joining the Novo Mercado were approved by the
Brazil’s Securities Exchange Commission (CVM) and BM&FBOVESPA, respectively, on
July 25 and 26, 2007.
B2W’s shares are listed on the BM&FBOVESPA and began trading under the BTOW3
(common shares) ticker symbol on August 8, 2007.
On December 31, 2013, the controlling shareholder block of Lojas Americanas was
composed of 62.23% of the Company's shares, excluding treasury shares.
The following is the Company's shareholding breakdown:
Dividend policy
The Company's By-laws, in conformity with the principles of current legislation, sets
the minimum value for dividends at 25% of net profit for any given fiscal year, adjusted
in accordance with the legislation in force. In 2013, B2W did not distribute any
dividends to its shareholders.
Shares
The Company's common shares are part of the Special Tag Along Stock Index
(ITAG), which consists of the stocks of companies that offer the same conditions to
minority shareholders in the event of a change of control. The Company is also part of
other major indices, such as the Consumption Index (ICON), the Special Corporate
Governance Equity Index (IGC) and the Valor Index - 2nd Tier (IVBX-2).
Adherence to the Arbitration Chamber
The Company, its shareholders and directors are obliged to resolve, by arbitration,
any dispute or controversy that may arise between them, related to or arising from, in
particular, the application, validity, effectiveness, interpretation, violation and
purposes of the provisions contained in the bylaws, the provisions of Brazilian Law No.
6.404/76, the rules issued by the National Monetary Council, the Central Bank of Brazil
and the Securities Commission of Brazil and other rules applicable to the operation of
the securities market in general, and those contained in the Listing Rules of the Novo
Mercado, the Novo Mercado Participation Agreement, the Arbitration Rules of the
Market Arbitration Board and, especially, the Assignment and Assumption of Liabilities
Agreement ("Termo de Voto"), which was entered into on December 13, 2006 and is on
file at the Company. Such arbitration shall be conducted before the Market Arbitration
Board, established by the BM&FBOVESPA, in accordance with the regulations of said
board, or the parties may, in accordance with Chapter 12 of those regulations, agree to
have such arbitration carried out before another board or in a different arbitration
center to resolve their disputes.
Accordingly, the Company is subject to the Market Arbitration Chamber, in
conformity with the arbitration clause contained in its By-laws.
Independent auditors
In accordance with CVM Instruction No. 381, B2W Digital affirms that its
independent auditors provide services to the Company in which corporate acquisitions
are reviewed. The independent auditors were contracted for such services on February
20, April 19, July 5, August 12, and September 5, 2013, receiving a total remuneration
of R$ 260,000, which represents approximately 20% of total fees relating to external
audit services. These services have already been executed and do not conflict with those
rules related to the independence of independent auditors.
The Company's policy regarding contracting independent auditors for other audit
services, which are not external in nature, ensures that there is no conflict of interest,
loss of independence or objectivity on the part of such independent auditors.
Board of Directors
Independent Members Luiz Carlos Di Sessa Filippetti
Mauro Muratorio Not
Paulo Antunes Veras
Representatives of the Controlling Shareholder Celso Alves Ferreira Louro
Jorge Felipe Lemann
Miguel Gomes Pereira Sarmiento Gutierrez
Osmair Antonio Luminatti
B2W Digital’s Board of Executive Officers
Anna Christina Ramos Saicali, President and CEO
Carlos Eduardo Rosalba Padilha, Operations Officer
Carlos Henrique de Lucca Fortes Gatto, Operations Officer
Flavio de Almeida Serapião, Operations Officer
Fabio da Silva Abrate, Investor Relations Officer
Jean Pierre Lessa e Santos Ferreira, Operations Officer
José Timotheo Barros, Operations Officer
Márcio Cruz Meirelles, Sales & Marketing Officer
Murilo dos Santos Corrêa, Chief Financial Officer
Thiago Mendes Barreira, Sales & Marketing Officer
IR, transparent information
The relationship with the market (analysts, investors and shareholders) is the focus
of Investor Relations (IR) area activities, for which transparency in the disclosure of
information about the Company's business is considered a priority. To fulfill this
commitment, B2W Digital maintains multiple contact channels, such as a bilingual site
that features up-to-date data, as well as e-mail and telephone.
A public meeting for analysts and shareholders, which is open to other interested
parties, is held annually. In addition, IR professionals attend events and conferences
for investors.
This work also involves the dissemination of an IR events calendar, coordinating the
production and publication of annual and quarterly reports, and other publications, as
required by law. The team is also responsible for disclosing market communications,
such as relevant facts, which are sent, simultaneously, to the CVM, BM&FBOVESPA
and the investing public.
To learn more about IR activities and to acquire related content, more information is
available via the website:
http://www.b2wdigital.com/informacoes-aos-investidores.
Suppliers network [G4-12]
By strengthening control practices in the contracting of suppliers, which are
integrated into our supply chain, we believe that we are in a position to choose the best
business partners. This, in turn, helps us in our business planning and contributes to
the results of our Company's operations. Thus, the adoption of more stringent criteria
for new contracts and those already signed have become guidelines that have been
incorporated into internal codes of conduct and reflect our commitment to United
Nations Global Compact (learn more in the highlights box below). [G4-26]
Among these activities, we note our control of internal flows of prior documentary
analysis and supplier regularity, an internal data bank in which all of this information
is registered, and an auditing procedure that has helped us to create indicators that
assist in the control and evaluation of supply contracts. Among the criteria that we
apply in this process are the degree of criticality of a given supplier to the overall
structure of the Company; analysis of compliance with rules, regulations and
standards; and the elaboration of action plans to resolve issues regarding irregularities.
Another extremely important dimension of our management is its aim to disseminate
principles for the protection and enhancement of human rights, including in contracts,
thereby contributing to the eradication of any forms of forced labor or labor performed
under conditions that are contrary to human dignity in our production chain. To
accomplish this, we have adopted specific provisions, which, in cases of non-
compliance, includes punitive measures, such as fines and immediate disaccreditation.
The Company supports several initiatives of entities, both public and private, which
are engaged in the identification of the potential risks and impacts of human rights
violations that may be associated with its activities. We encourage audits, as well as
internal and external monitoring, to inhibit any practices that are contrary to the
expectations of the many stakeholders related to our business. [HR6 and HR10]
Joining the Global Compact
In 2013, the company took another important step in the process of strengthening its
management, in line with the highest standards of sustainability, when, on November 1,
it signed on to the United Nations Global Compact. This is an initiative that brings
together thousands of companies around the world committed to the best practices of
corporate respect for human rights, particularly in relation to labor issues, as well as
environmental and business ethics. We are pleased to be part of this initiative.
From this framework, we intend to move further along the path we have taken
toward building a Green Company. As part of the commitments made by the Global
Compact, we report annually on our sustainability report, progress in the spread of a
line with the UN principles and values of corporate culture. [G4-15]
People Management
People who make a difference
To achieve the goal of being the most well-loved company in Latin
America, we need people who are committed to this goal.
To have the best people on our side, we constantly invest in the development and
improvement of our team. We have identified, in the market, those professionals with
the essential characteristics necessary to achieving our way of doing business, i.e. an
ability to exceed targets, passion for technology and courage to face challenges. We also
value those who behave like owners of the business and who always put the customer
first.
Profile of our associates
In 2013, B2W's workforce was composed of 10,017 associates, of whom 6,392 were
women and 3,625 men. All of our professionals are full-time employees with indefinite-
term employment contracts. [LA10]
We understand that, to promote equality between men and women and to ensure
that wage policies for recruitment and promotion eliminate all possibilities of
discrimination, the Company's most significant component for the development and
promotion of its people must be meritocracy. Accordingly, our entire team has the same
opportunities and we are very happy to know that, through the individual merits of
each, women are present in all levels of the corporate hierarchy – board of directors,
president and CEO’s office, board of executive officers, and managers, and women
comprise the majority of our rank-and-file employees.
The following table reflects numbers of employees present in given functional levels
of the Company (by gender). [G4-10]
To stimulate the improvement of the welfare of our associates, we prioritize hiring
professionals who are residents of the regions surrounding our facilities. Thus, in 2013
the majority of employees hired by the Company, including senior managers (directors
and managers), came from the respective regions where the Company is
present. [EC6]
In 2013, our associates participated in formal health and safety committees. This is a
significant issue in the context of our Personnel Management policy. [LA5]
Essential training
Enhancing talents and promoting skills, such as leadership,
results orientation and strategic vision, require ongoing training.
The construction of a motivating work environment requires, among other factors,
activities that value talent and continuous improvement. In this regard, we offer
various training programs that contribute to the professional development of our
associates and the dissemination of our culture.
The guiding principles of the Company [G4-56] inspire our personnel development
programs, which, in turn, are built upon the three pillars presented below.
Men Women Men Women
Board of Executive Officers 7 1 9 1
Management 77 54 118 82
Orientation/coordination 132 91 153 111
Technical/supervisory 129 96 294 393
Administration 180 206 209 433
Operations 2,612 5,255 2,814 5,35
Interns 4 0 4 2
Total by gender 3,141 5,703 3,625 6,392
TOTALS
Number of employees at given functional levels
2012 2013
8,844 10,017
People Pillar
Our approach to people, because of the complexity, importance and scope of this
pillar, is subdivided along the lines of culture, leadership practices and relationship to
society.
In Culture, our goal is to spread the Company’s Culture, Values and Principles,
thereby strengthening attitudes and behaviors that are the backdrop to our
Management System and which help us to fulfill our dreams.
In Leadership Practices, we seek to train leaders of the Company so that they can
achieve results with their teams, always with the assurance that "Leadership is
consistently hitting its targets when it has a team that is doing it right."
Relationship with Society means sharing the concepts of the Company's sustainable
development practices with our associates and engaging them therein, such that we
may be increasingly recognized by society as a socially and environmentally responsible
company.
Methods Pillar
Through our Methods, we aim to disseminate and incorporate in the daily lives of our
associates, at all levels, practices and management tools that have been systematized,
such that our way of solving problems, achieving goals, and improving our capacity for
analysis and decision making are based on facts and data.
Results Pillar
The goal of the Results Pillar is to achieve results through performance improvements
in all areas (Sales & Marketing, Operations and Support) by training our associates in
the standards of execution of processes and activities, and in the development of skills
required to achieve results in each function.
Investing in talent
Through courses and training, we have contributed to
continuously raising the level of expertise of our executives.
Our corporate universities are based in Rio de Janeiro and São Paulo. As part of our
activities, we have a dedicated team that internally produces educational content and
seeks academic support from the best universities in Brazil and the world – including
Harvard and Stanford (USA).
In 2013, one of our biggest investments was in training senior management. Here, a
highlight was the participation of a Harvard professor who spent several days at our
Rio de Janeiro headquarters, developing and improving the techniques and strategies
of our Company with our management team.
We have developed specialized training for e-commerce professionals, which
includes classroom modules and also e-learning. The set of training activities has been
dubbed Role Accreditation and is another important training tool being offered by the
Company.
Overall, in 2013, B2W showed a significant increase in the number of training hours
it offered, reaching a total of 160,175 hours, which included improving skills in the
commercial, operations and leadership areas. [LA9]
Moreover, as part of the professional development process, all of the Company's
associates in administrative positions had to undergo a performance evaluation.
[LA11]
Valuing talent
To satisfy the specific needs of e-commerce professionals, we
invest in recruitment and training programs.
Through our distinctive Human Resources Management process, we train our talent
in-house through internship, trainee and new talent initiatives dedicated to more
deeply sensitizing these participants to the issues that are of greatest relevance to our
digital businesses. These programs are considered to be the principal gateways into the
Company – so much so that most of our corporate officers entered the Company by
taking advantage of opportunities like those that we offer, going on to develop
successful careers here.
Internship program
Our program aims to educate and train young college students to become future
leaders. With a maximum duration of two years, it is one of the major gateways into the
Company. Interns undergo training with and attend lectures by our
executives. Educational themes relate to the Company's interest areas and assist in
further familiarizing participants with the Company's business and the digital
marketplace.
From Day One, interns are assigned to their respective areas, learning to handle the
business in these sectors. The goal is to aid their development, such that they can build
successful careers in the Company. The program has been very successful as we can
point to a record of positive accomplishments.
New Digital Talents Program
With its focus on recent college graduates, the program aims to fast-track the
development of professionals capable aiding in the growth of our group companies. An
associate enters the Company already assigned to the area in which he/she will work,
getting to know team in that sector on a day-by-day basis. During the first six months,
the managers of each area of the Company give presentations and site visits are
arranged to operational units, such as distribution, telephone sales and customer
service centers. The program, which was launched in April 2011, features continuous
recruitment that takes place throughout the year.
Trainee Program
B2W Digital's Trainee Program was developed especially for young people, who were
"born connected" and are passionate about new technologies and innovation. During
the yearlong program, participants are engaged in an intense learning initiative divided
into two stages. In the first six months, trainees learn about the entire operation of the
Company and take part in several corporate training programs. In the following
months, individual trainees are assigned to a specific business unit, where on-the-job
training takes place and the trainee has an opportunity to develop a challenging project.
After this period, the associate begins working in this unit.
Program for Persons with Disabilities (PWD)
Promoting social inclusion and the certification of professionals with disabilities in
the workplace is the goal of our People with Disabilities (PWD) Program. B2W values
diversity in the workplace and does not tolerate discrimination in any form.
Professional growth occurs through daily learning about the various activities of the
digital marketplace. We are constantly offering vacancies for this constituency and, in
partnership with municipal departments and specialized consultants, we identify
candidates that we recruit to work in the Company's business units.
Young Apprentice Project
Developed in partnership with Brazil's National Apprentice Training Service
(SENAC) or equivalent bodies in the cities where our business units are located, the
Young Apprentice Project prepares young students for our labor market. The initiative
offers a fixed-term contract and, in return, the student is obligatorily committed to
register at attend elementary school.
Benefits offered
In addition to those benefits that are mandated by law, B2W Digital offers its
associates meal vouchers, health insurance, and discounts on products purchased via
the Americanas.com, Submarino and Shoptime websites. Beyond this, we extend our
care for our professionals in other distinct ways. For example, we maintain
partnerships with the best health spas, as well as with restaurants, language schools
and the most reputable universities. These allow us to offer our associates even further
benefits.
Socio-Environmental
Management
Green Company
We know that achieving economic performance alongside social
development activities and reductions in environmental impacts
constitutes a challenge.
Our efforts to expand and strengthen best management practices for sustainability
have a strong ally in the Green Company project. Since this concept was created in
2007, we have made constant progress in our search for solutions to reduce the
environmental impacts of our activities. [G4-14]
One of the major advances in addressing this significant subject within the Company
came with the creation of our Sustainability Board, which reports to the highest level of
corporate management. Established to support this important policy area, the board
has made contributions that have expanded the reach of our social development and
economic growth activities in the communities where we operate. Our experiences and
notable achievements are highlighted in this chapter. [G4-2]
With the support of the Sustainability Board, which has a team entirely dedicated to
the goals of the Green Company, we carry out our activities by engaging all of our
associates and raising environmental awareness issues through the use of various
educational and management tools.
We recognize the existence of different stakeholders within the industry in which we
operate. Therefore, our goal is to establish connections with each of these. To
accomplish this, we have developed specific relationships and engagement activities for
our various stakeholders.
We believe that stakeholder engagement, beyond being essential to the
implementation of sustainability strategies, must be deeply woven into one of our
ethical values: transparency.
Sustainable communication
One of the positive outcomes of our Green Company strategy is the virtual space we
have established on our Investor Relations website, whose goal is to expand
communication with our stakeholders. This direct and interactive channel is an ideal
place to disseminate information on corporate sustainability guidelines. Through this
space, visitors can access an inventory of our greenhouse gas emissions and our
Environmental Policy. These are initiatives that have yet to be widely adopted by
Brazilian companies, which further demonstrates the innovative, leadership position
the Company is taking.
For questions, suggestions and comments related to topics of interest in this
corporate area, individuals are encouraged to contact the Sustainability division
through its dedicated e-mail address: [email protected].
A strong area of development for the Green Company is the work being done in the
area of communications. By using various channels of information dissemination,
especially through the use of digital tools, our goal is to mobilize associates, customers
and other stakeholders to become positive players in causes of collective interest. Thus,
the sustainable use of natural resources, consumer awareness and healthy living are key
themes that were present in the campaigns and other information dissemination
activities carried out in 2013. [G4-26]
On World Water Day (March 22), communication activities addressed the fight
against waste. As a way of extending the reach of educational strategies aimed at our
associates, in addition to water taps with timers becoming a permanent feature of our
administrative buildings, communications focused on conscious consumption.
As in previous years, we also encourage associates and guests to participate in Earth
Hour, a worldwide mobilization promoted by the environmental organization, WWF.
By turning off lights for an hour on March 23, people voiced their concerns about global
warming and its potential environmental, social and economic impacts. Tackling
energy waste is an important part of our communication strategy.
In keeping with the main objectives of the Green Company, World Environment
Week (the first week in June) is of great importance to us. During this period, we
expanded our information efforts regarding sustainability through our various
communication channels. Furthermore, in our administrative buildings, we put up new
signs for our selective waste collection program, so as to facilitate the program's
effectiveness and, thereby, contribute to the efficiency of the selective collection
program.
To broaden the range of our educational activities, the campaign also extended to
customers. This was achieved through marketing partnerships that placed banners on
the websites of our brands.
To learn more about the Green Company, please visit the hotsite:
www.b2wdigital.com/institucional/companhia-verde-popup?flash=upload/companhiaverde/00002007.swf
Focus on health
Through an invitation from Brazil's Ministry of Health, we offered support to
activities related to Pink October, an international awareness campaign held in the
month of October to alert and educate society, and especially women, about the
importance of prevention and early diagnosis of breast cancer. Accordingly, as part of
that initiative, we carried out our largest communication campaign of the year to draw
attention to this issue. We invited our associates to dress in pink on October 16, on
which date the color was also prevalent in the decorations used in all administrative
units. Another positive outcome of this initiative was to engage and interact
successfully with our customers through websites, Facebook pages and, by way of a
strong marketing partnership, through the Shoptime television channel.
On World Health Day (April 7), part of our efforts included the distribution of
educational brochures and cereal strips to our associates. As we are deeply concerned
about the health of our employees and other stakeholders with whom we interact, we
also offered tips for improving eating habits, among other messages of encouragement
towards healthier lifestyles.
In 2014, B2W Digital intends to develop or sponsor a significant activity that
encourages participation in sports, as a means of promoting healthy lifestyles among
and the well-being of our associates and the general public.
GHG emissions profile
Maintaining an account of greenhouse gas (GHG) emissions is a critical
component guiding decision-making within the Company.
B2W Digital is a company that understands that the management of greenhouse gas
(GHG) emissions is a fundamental aspect of management. In fact, all members of the
Green Company committee were trained and certified in the Brazilian GHG Protocol
Program tool, an important mechanism for the calculation and control of CO2, which is
based on an international emissions quantification methodology used by companies
and government institutions around the world. Since 2009, the Company has been
internally calculating and managing all of its CO2 emissions, reporting these on its
Investor Relations website.
In 2013, B2W achieved advancements in regards to reducing the use of energy
sources that generate GHG emissions. A large investment was made to replace gas-
powered forklifts with electric ones that are more efficient and generate fewer impacts
on the environment. Thus, the reduction of LPG (liquefied petroleum gas, which is a
mixture of hydrocarbon gases that are used as a fuel in heating applications, such as in
stoves and vehicles) was 99% compared to 2012. Another positive development (shown
in the table below) was the 20% reduction in diesel consumption, as a result of the
decreased use of generators in administrative areas and distribution centers during the
past year. [EN6 and EN27]
Fuel economy [EN3]
Energy Consumption (GJ) 2012 2013
LPG 24969 205
Diesel fuel 4482 6814
Gasoline 275 358
Other fuels 755 145
TOTAL 30481 7522
The data in the table above depicts the direct emissions of the Company, i.e.
emissions from its own sources, such as forklift trucks, fleet vehicles and
generators. These values are part of scope 1 in the next table.
It is significant to note that when we transform the gigajoule (GJ) values above to
tons (t) of CO2 equivalent (tCO2e - a measurement unit used internationally to
calculate emissions), the Company's energy consumption is calculated together with
emissions factors established by the GHG Protocol, which means that the total
reduction that appears in the table above (78%) is lower when converted to GHG
emissions (30%).
In the table below, we show the Company's total GHG emissions for 2013.
GREENHOUSE GAS INVENTORY RESULTS [EN15, EN16 and EN17]
Key
Scope 1: Direct greenhouse gas emissions – According to the GHG Protocol methodology, these are produced from stationary and
mobile sources, which belong to the Company or are controlled by it, such as forklifts used at distribution centers and other
vehicles.
Scope 2: Indirect greenhouse gas emissions – Produced from the consumption of electricity or thermal energy.
Scope 3: All other indirect emissions resulting from the Company's activities, but which are produced by sources not owned or
controlled by the Company, such as business travel and delivery envelopes delivery used for goods purchased via e-commerce.
Scope 2 has undergone a change due to the increase of the emission factor for
electricity generation in Brazil. This factor increases in those years in which electricity
is generated by less renewable sources and is, therefore, dirtier and emits more GHGs.
GHG by source (tCO2e) 2012 2013
Scope 1 728 507
Scope 2 867 1430
E-commerce delivery envelopes 1391 2068
Business trips 482 404
Scope 3 total 1.873 2.472
Indirect Emissions (Scope 3)
Direct Emissions (Scopes 1 and 2)
In 2012, the emission factor for electricity was 0.0653 tCO2/MWh, while in 2013 it had
increased to 0.0960 tCO2/MWh. However, when we analyze power consumption in
kWh, which increased from 13,272,677 kWh in 2012 to 14,892,741 kWh in 2013, it is
possible to note that the increase (12%) was proportionally lower than the Company's
growth (28%). In other words, despite the sizable growth of the Company, the
consumption of kWh has not grown as intensely due to actions taken and investments
made in energy efficiency and raising the consciousness of our associates. [EN16]
Another significant source of emissions from the Company was as a result of business
travel, which is included in Scope 3. In 2013, there was a 16% reduction of this factor,
which is due to the awareness of associates as regards this factor, such that greater
efforts were made to have them travel together on the same flights, among other
actions. Scope 3 also includes plastic envelopes used for deliveries. This factor will be
discussed further in the next section. [EN17]
Logistics
The Company's operations depend on an outsourced truck fleet, which carries out
deliveries of products bought through e-commerce. As such, and as a strategy to reduce
environmental impacts, especially GHG emissions, vehicles will only begin their trips
with full loads, which are also shared with other companies. [EN30]
Management solutions, such as new distribution centers (DCs) – including those that
opened, in 2013, in the cities of Recife, Pernambuco, Rio de Janeiro, and Uberlândia,
Minas Gerais – have been implemented with the goal of improving operations and
optimizing logistics. As we are now physically closer to our customers, we are
contributing to the reduction of GHG emissions and other environmental impacts
related to transportation. [EN30]
However, despite the aforementioned logistics efforts, which sought to consolidate
products to the same address and combat waste of fuel, increasing operations in 2013
resulted in the elevation of the scope 3 emissions by 32%, as reported in the table with
the emissions inventory. This happened because of the growth in the consumption of
plastic envelopes used for deliveries; an item that is included in the calculation of
indirect emissions and heavily monitored, as it has impacts on nature and the
organization's business. [EN17]
Due to the type of business we are engaged in, which is strongly associated with
logistics services, B2W understands that this is a critical issue among the many
challenges associated with climate change that must be addressed. The surge in the
adoption of more stringent legislation, as well as taxes being levied on fuels and
logistics services in general suggests a trend that could increase future operational
costs. In this regard, we will continue the process of improving our management aimed
at adopting best solutions, such as those which we have highlighted in this report.
[EC2]
Opportunities for eco-efficiency
The company views concerns over climate change as an
opportunity to invest in modernization and eco-efficiency
initiatives.
Sustainable buildings
One of the more noteworthy demonstrations of our sustainability management in
2013 was concluded in August, with the opening of the B2W Innovation and
Technology (BIT) facility, B2W's new building, located in Rio de Janeiro, which was
constructed in accordance with Leadership in Energy and Environmental Design
(LEED) quality standards. We opted for this international certification – which attests
to the adoption of best environmental practices for buildings, from the design phase to
construction to long-term use – because we believe that we can achieve progress in our
corporate performance through the implementation of eco-efficient solutions that will
help us achieve better results not only for our business, but for society as a whole.
With LEED certification for BIT, which is one of the few Green Seal-based initiatives
in the city, we are also satisfying the expectations of our stakeholders, who have cited
this international standard in connection with one of the most important issues our
business can address as it tackles matters related to its physical presence.
There are many advantages associated with new constructions bearing the LEED
seal, which go beyond high-level technological standards. In this respect, a notable
feature in facilities use is the absence of dividers that separate associates from one
another. This favors greater interaction between people and facilitates day-to-day
communications.
From an engineering standards standpoint, countless smart solutions were adopted.
For example, 50% of the building's structure is composed of recycled materials and by
restoring its façade, it preserves historic architecture. These options resulted in a great
saving of materials and natural resources.
The energy efficiency of the new building is ensured in several ways – through the
use of T5 fluorescent bulbs (which consume 5% less energy) and a smart air
conditioning system (which allows BIT to avoid being dependent on wasteful cooling
technologies). Another contribution comes through the absence of external lighting,
which, besides eliminating visual pollution, avoids unnecessary power consumption.
Rational water use is achieved through the installation of water saving devices in the
bathrooms, e.g. aerators on taps, flow restrictors (6 liters/minute) and dual flush valves
on toilets. Additionally, a rainwater capture/treatment system was designed to allow
this water to be used in toilets.
To encourage our associates to commute in a more healthy and sustainable manner
within a city that has had to confront major urban mobility problems, the building
features a 10-slot bicycle rack. To facilitate their use and ensure the welfare of our
teams, changing rooms that feature water saving devices were installed. For example,
the showers have a maximum flow rate of 8 liters/minute.
Segregated collection of waste is another significant contribution and, with the
collaboration and awareness of our associates, we have brought about the proper
disposal of all wastes being generated in the facility.
Thus, the design features of the building, together with the best management
practices of the facility, are ensuring reduced emissions of GHGs in the functioning of
the BIT, where the total investments came to more than R$ 1 million.
Our sustainability management process will move forward in 2014, as we will
another building constructed to the same standards in São Paulo. It is also our
intention to renovate all of our administrative facilities, applying these same guidelines,
in the coming years. [EN27 and EN31]
Corporate citizenship
Promoting educational activities and solidarity mobilizations is
part of our contribution to building a more sustainable society
Education via digital inclusion
Encouraging education and digital inclusion through modern, information
technology tools, installed in a flexible structure, is the main guideline of the Center for
Mobile Digital Inclusion (CID Móvel), which opened, in 2013, in Osasco (one of the
most populous cities in the São Paulo-metro region), where the Company has a
distribution center.
The CID Móvel initiative is supported by two trailers that were totally refurbished
and equipped to carry out educational activities. Computers with Internet access ensure
the conditions necessary to provide professional computer courses, as well as to
facilitate web communications for the local population.
In synergy with our values and aligned with our business profile, this initiative has
received long-term social investments of over R$ 1 million in 2012, to allow it to begin
operations in 2013. In the coming years, we will invest even more in other social
projects, as we believe that we can always contribute to building a more prosperous and
sustainable society. [EC7]
We believe that, by offering training and certification opportunities to the population
of Osasco and adjacent areas for use in the local labor market, CID Móvel is
contributing to the enlargement of B2W's indirect economic impacts. One of the
Company's concerns is with the generation of jobs in the regions where it
operates. Apart from direct employment in its facilities, we prioritize the selection of
local service providers. [EC8]
Moreover, due to the nature of our type of business and taking into account the many
growth opportunities that exist in Brazil for the advancement of e-commerce, we know
that by offering professional training through initiatives like CID Móvel and others, we
will be providing support, of even greater relevance, to the future socio-economic
development of the communities in which we operate.
Contribution to the community
In 2013, the Company actively demonstrated its commitment to corporate
citizenship, engaging in projects that contributed to the fostering of a more cohesive
society, especially those that required urgent attention.
With support from our associates, we mobilized our network of suppliers and carried
out the collection of over 2,000 hampers and 500 Christmas trees that were donated to
the residents of Rio de Janeiro's Complexo do Alemão shantytown. The community was
hard hit by rains that fell in the city in December, which resulted in large material
losses.
The Company's Sustainability team delivered these donations personally to the
president of the neighborhood association. For everyone involved, there was a feeling of
satisfaction in having participated in the campaign, especially at such a significant time
of the year.
Supporting INCA
Following Rio de Janeiro's Biennial Book Fair, Submarino donated more than 1,200
books and 40 puffs to the National Cancer Institute (INCA). These items found their
way to their new home after having been used in the brand's booth during the fair,
which was held in September.
To further support INCA's work, in 2013, the Company also donated a thousand cans
of powdered milk, a staple food for the patients that are treated at this institution.
Cultural support
In 2013, B2W gave its associates and the Rio de Janeiro community a colorful panel,
70 meters high and 30 meters wide, the largest in the city. It is located in the port
district, where our headquarters are located. The cultural incentive came at an
opportune time, as Rio is in the midst of a revitalization process as the city prepares to
host the 2014 FIFA World Cup and the 2016 Olympic Games.
With its vibrant colors and striking images, this work of graffiti art by visual artist,
Tomaz "Toz" Viana, offers something distinctive to the local landscape. Toz created this
work, along with an expert team of graffiti artists.
Using a huge canvas that cannot be missed by passersby and inspired by the language
of urban art increasingly appreciated in the metropolises of Brazil and the world, this
work graces the city with a message of peace and joy.
Campus Party
For the fourth consecutive year, Submarino participated in the seventh edition of the
Campus Party – the world's principal technology, creativity and digital culture event.
As an e-commerce representative and a gold sponsor of this e-commerce event, the
Company offered visitors the opportunity to watch an unprecedented battle of the
robots (Submarino's Ultimate Robot Combat), which was created by engineering and
robotics teams from Brazil's leading universities. Submarino's stand also offered dance
games and the opportunity to test out technology products.
Economic Performance
Deepening the customer relationship
We are investing to offer the best digital experience in Latin
America.
As regards consolidated operations, in 2013, the Company recorded net revenues of
approximately R$ 6 billion, which represents 26.5% growth compared to the previous
year.
Throughout the year, important steps have been taken, which have enabled the
Company to better achieve its goal of forming a closer relationship with its customers
by providing the best shopping experience, and offering the best delivery and customer
services. In 2013, we opened three new distribution centers (DCs), for a current total of
seven DCs, with at least seven others scheduled to open before the close of 2015.
In recognition of the work achieved by the entire company to deliver the best digital
customer experience, in 2013 B2W won major industry awards, including four "Época
(magazine) Reclame Aqui - Best Consumer-Oriented Companies" awards and, for the
seventh consecutive year, the "Top of Mind Internet" award. These achievements
confirm the Company's position as No. 1 in customer service.
Financial Results
Net Revenue
In 2013, consolidated net revenue totaled R$ 6,088.5 million, compared to R$
4,812.4 million in 2012, which represents an increase of 26.5%.
Gross Profit and Gross Margin
In 2013, consolidated gross profit reached R$ 1,507.5 million, an increase of 31.6%
compared to R$ 1,145.5 million in 2012. For the year, the consolidated gross margin,
when calculated as a percentage of net revenue, was 24.8%, an increase of 1 percentage
point compared to the gross margin of 23.8% achieved in 2012.
General and Administrative Sales Expenses
In 2013, consolidated sales expenses, general and administrative, totaled R$ 1,076.4
million, which represents 17.7% of net revenue.
Adjusted EBITDA and Adjusted EBITDA Margin
In 2013, the consolidated adjusted EBITDA reached R$ 431.1 million, an increase of
30.2% from the R$ 331.2 million recorded for the same period last year. In 2013, the
consolidated adjusted EBITDA margin, when calculated as a percentage of net revenue,
was 7.1%, an increase of 0.2 percentage points in relation to the margin achieved in
2012.
Net Financial Result
In 2013, the consolidated net financial expense was R$ 512.9 million, an increase of
22.1% compared to the consolidated net financial expense of R$ 420.2 million recorded
in 2012.
The Company continues to maintain its commitment to a conservative cash
application policy, which is manifested through the use of foreign currency hedging
instruments, to cover any fluctuations in exchange rates, in relation to financial
liabilities against its total cash position. These instruments offset the foreign exchange
risk, transforming the cost of debt for local currency and interest rates (as a percentage
of the CDI, or Interbank Deposit Certificate). In the same vein, it is worth noting that
the Company's cash is invested in Brazil’s top tier financial institutions.
Net Income
In 2013, consolidated net income was R$ -159.6 million, compared to R$ -170.7
million recorded in 2012.
Debt
B2W uses its cash flow to prioritize investments that generate the best returns for
shareholders. Thus, in 2013, consolidated investments in property and intangible assets
(development of websites and systems) totaled R$ 714.1 million. On 12/31/2013, B2W
had available a total cash of R$ 2,660.0 million, an amount greater than the sum of the
Company's loans and short-term debentures, which totaled R$ 506.5 million. On
12/31/2013, the Company's net debt was R$ 920.7 million, which represented 2.1 times
EBITDA for the previous 12 months. To cope with uncertainties and volatility in the
financial market, B2W Digital is oriented toward the preservation of cash and
extending its debt profile. Over the past few months, several measures have been taken
for this purpose, which allows us to consolidate the Company's investment plan for the
long term.
Absence of Foreign Currency Exposure
On 12/31/2013, B2W Digital carried foreign currency debts on its balance sheet.
However, these debts are FULLY PROTECTED against any foreign exchange
fluctuations through derivative transactions (swaps), which replace the exchange risk
for variation in the basic Brazilian interest rate (CDI).
Capital Increase
On January 24, 2014, the Board of Directors meeting was held to approve the
signing of the Share Subscription Agreement signed with Tiger Global Brazil, LLC and
Tiger Global Long Opportunities Brazil, LLC (Tiger Global Long Opportunities Brazil,
LLC together with Tiger Global Brazil, LLC, the "Investor") and the Controller of the
Company, Lojas Americanas S.A., for a private capital stock increase to be approved at
an Extraordinary Shareholders Meeting of the Company, in the amount of R$ 2.38
billion, through the private placement of 95,200,000 registered, non-par value
common shares, at an issue price of R$ 25.00 per share. The capital stock increase is
aimed at improving the Company's capital structure and the resources obtained
through its realization will be allocated to the amortization of the Company's debt. The
capital increase will allow the Company to continue investing in the pillars of its
business, accelerating its growth and consolidate its leadership position in the market,
which aims to better serve its customers.
Net Working Capital
On December 31, 2013, consolidated net working capital was 25 days, representing
an improvement of 49 days compared with 74 days recorded on December 31, 2012.
B2W Digital, confirming its commitment to maximize shareholder value, continues
to work to manage working capital variables. Thus, opportunities to improve internal
processes and supplier relationships have been implemented, and we are certain that
better levels can be achieved.
GRI Content
About the report
B2W Digital's second sustainability report meets the guidelines of the Global
Reporting Initiative (GRI), version G4, and reflects the Company's fundamental level of
commitment to corporate management practices related to issues that are most
relevant to the business.
The information in this reporting cycle, including 26 environmental, social and
economic indicators on which we are reporting, refer to the main activities of all
business units of the Company, including its headquarters and distribution centers,
developed between January 1 and December 31, 2013 [G4-17, G4-28]. The 2012
sustainability report [G4-29] was our previous report, based on the GRI, application
level B, version G3, so we consider this report to be an important part of the advances
we have adopted, as this second edition is based upon the latest version of the GRI.
To satisfy the requirements of the G4 version of the GRI, in 2013, we completed the
materiality process, which is detailed in the following topic. Thus, our report for this
second cycle is based on those issues that are considered priorities for our
management, according to the perceptions of internal and external stakeholders who
participated in engagement promoting activities (with customers, suppliers, partners,
and experts on sustainability and retail sales issues). The issues mentioned by these
stakeholders are addressed in every chapter. To systematize the information we have
reported, we relied on the involvement of professionals from all corporate sectors.
We reiterate that via this annual report [G4-30] we are demonstrating our
commitment to strengthening all channels of communication with our stakeholders.
To contact the company and obtain more details on the contents of this publication,
please send an e-mail to [email protected]. [G4-31]
Application Level
To meet the requirements of the GRI, version G4 essential, we have responded to the
general contents of G4-1 to G4-34, and G4-56, specified in the GRI Index and marked
in brackets in the corresponding texts. Similarly, in relation to specific contents, for
each material aspect we have correlated our indicators, which are also detailed the GRI
table.
Materiality as a guideline
In 2013, we took an important step in the engagement of our key stakeholders, as we
concluded the materiality process that was started in 2012. The Principle of Materiality
is one of the most important guidelines disseminated by the GRI and another
international organization, AccountAbility – both of which are international
benchmarks in sustainability. This tool, which focuses attention of key stakeholders,
has helped companies to identify those issues that are most relevant to their businesses.
It is for this reason that we decided to adopt it to guide our second sustainability report,
which is based on the GRI model, version G4. [G4-18]
In 2013, we had an opportunity to explore this issue with our stakeholders. Our first
consultation in this area was with retail and sustainability experts in 2012, which we
addressed in our first sustainability report that was published in accordance with GRI
model, version G3. And the results of those first conversations have recently undergone
a re-reading. Accordingly, as we proceed with dialogue strategies that have already
been initiated, we believe that we will evolve towards a better understanding of the
perceptions of our internal and external audiences on priority issues that relate to our
e-commerce activities.
To more deeply sensitize the Company as regards societal perceptions about our
sustainability activities and to best define strategic themes for our business, we hired a
specialized consulting firm that conducted an online consultation and received over
2,900 responses from customers, suppliers, associates and members of the G30. Eight
in-depth interviews were also conducted with four of the Company’s executives, as well
as four sustainability experts who came from, respectively, the Akatu Institute, the São
Paulo Supermarket Association (APAS) and Getúlio Vargas Foundation’s Center for
Retail Excellence (GVCEV). [G4-24, G4-25, G4-26]
In addition to conducting interviews and consultations to arrive at the results and
recommendations presented, the consultancy analyzed internal documents of the
Company, as well as national and international sectoral studies conducted by
recognized organizations, such as AccountAbility, APAS, the Dom Cabral Foundation
and the AKATU Institute. The GRI-G4 guidelines, coupled with a range of international
standards from AccountAbility (AA 1000), which focused on stakeholder engagement,
were also crucial tools in the process.
In the following list, we present the ten most important issues for our business, from
the perspective of respondents from internal and external constituencies. The results of
the identification and the prioritization of strategic issues were, in turn, analyzed and
compared to generate a materiality matrix, which is also illustrated in this chapter.
[G4-19, G4-27]
STRATEGIC ISSUES [G4-20, G4-21]
Material theme
Extent of impacts *
(within the business)
Extent of impacts*
(in the value
chain)
GRI-related aspects
Chapter addressed
Monitoring supplier practices
- Suppliers across Brazil and near the corporate HQ and distribution centers
• Compulsory labor • Human rights evaluation of suppliers
Governance
Supplier engagement and development
Reduction of environmental impacts and the efficient use of resources
Associates and top management
Communities nearby the corporate HQ and distribution centers
Suppliers in general
Customers
• Economic performance • Energy • Emissions • Effluent and waste • Products and services • Transportation • General
l
GHG emissions profile
Eco-efficiency opportunities
Disposal of products and packaging
Sustainable buildings
After-sales servisse
Associates and top management
Suppliers in general
Customers
• Customers’ health and safety
• Labeling of products and services
• Sales & marketing communications
• Customer privacy
Proximity to the customer
Quality in customer relationships (customer service, warranty services, and consumer rights)
Consumer education
Working conditions and employee development
Associates and top management
- • Employment • Workplace health and safety • Training and education
Human resources management
Investor returns and financial health of the business
Associates and top management
Investors
Suppliers in general
Customers
Economic performance
Economic performance
Materiality Matrix
We recognize that the issues referenced here are challenging, not only for us but also
for other companies in both traditional and digital retail operations. However, as has
been demonstrated in this sustainability report, we have achieved significant progress
in finding solutions to issues that have been flagged as priorities, including those that
correlate with the GRI indicator themes, about which we have offered
responses. However, the challenges are ongoing and we know, to evolve further, we
need to prepare ourselves to face them with creativity and dynamism, which are
notable features of doing business the B2W Digital way.
In this respect, our approach will be to continuously improve our management
mechanisms and tools, with the aim of adding value to the Company’s operations and
mitigating negative impacts of products, services and operations, as well as expanding
social assistance, to which we are also committed. To meet the needs of society, we rely
on the support of our associates and, particularly, through the activities of the Green
Company. This initiative has driven us towards excellence in applying the concept of
sustainability in corporate practices and strengthening communication processes with
stakeholders.
We must also remain alert to the perceptions of our stakeholders and to other
opportunities for dialogue. In the next report, we intend to have still more answers to
strategic issues referenced in the query segments. To achieve this, we reiterate that we
are committed to continuously improving our communication channels with society
and identifying the principal trends in the dissemination of the sustainability-related
information as it pertains to retailing. We shall also remain focused on identifying
and/or creating innovative tools and management solutions for use in the Company
over the short- and medium-term. Accordingly, we aim to minimize potential risks,
strengthen relationships and increasingly please our customers and other stakeholders.
“Our whole strategy is defined such that we are a company with a focus on
social responsibility, environmental initiatives and concern for people.”
(Executive interviewee)
GRI Index [G4-32]
Description External
verification Page/Response
G4-1 President’s message - Management Message
G4-2
Description of key
impacts, risks and
opportunities
Socio-Environmental
Management/Green
Company
G4-3 Name of
organization
Organizational Profile/The
Company
G4-4
Primary brands,
products and/or
services
Organizational Profile/The
Company
Description External
verification Page/Response
G4-5
Location of
organization’s
headquarters
Organizational Profile/The
Company
G4-6
Countries where the
organization’s
principal operations
are located or those
that are specifically
relevant to the
sustainability topics
covered in the report
Organizational Profile/The
Company
G4-7 Nature of ownership
and legal form
Organizational Profile/The
Company
G4-8
Markets in which the
organization
operates
Organizational Profile/The
Company
G4-9 Scale of the
organization
Organizational Profile/The
Company
G4-10 Profile of employees
Human Resource
Management/Profile of our
associates
G4-11
Percentage of total
employees covered
by collective
bargaining
agreements
Our associates will
continue to be covered by
collective bargaining
agreements.
Description External
verification Page/Response
G4-12
Description of the
organization’s
supply chain
Customers: Our greatest
asset/Suppliers network
G4-13
Significant changes
regarding the
organization’s size,
structure, ownership,
or its supply chain
Customers: Our greatest
asset
G4-14
Description of
whether and how the
precautionary
approach or
principle is
addressed by the
organization
Socio-Environmental
Management/Green
Company
G4-15
Externally
developed charters,
principles, or other
initiatives to which
the organization
subscribes or which
it endorses
In 2013, our Company
signed on to the UN
Global Compact,
committing ourselves to
strengthen corporate
practices in respect of
human rights, the
environment and business
ethics.
G4-16
Participation in
national or
international
associations and
organizations
In 2013, the Company
became a member of the
Institute for Retail
Development (IDV), with
the aim of participating in
the discussion of topics of
interest to the industry, as
well as keeping abreast of
best practices as they are
disseminated by the
institution.
Description External
verification Page/Response
G4-17
Entities included in
the consolidated
financial statements
and entities not
covered by the
report
GRI Content/About the
report
G4-18
Explain the process
for defining the
report content
GRI Content/About the
report
Materiality
G4-19 List of all material
aspects GRI content/Materiality
G4-20
Aspect Boundary,
within the
organization, for
each material aspect
GRI content/Materiality
G4-21
Aspect Boundary,
outside the
organization, for
each material aspect
GRI content/Materiality
G4-22
Restatements of
information
provided in earlier
reports
There was no restatement
of information contained in
the 2012 report.
Description External
verification Page/Response
G4-23
Significant changes
from previous
reporting periods in
the Scope and
Aspect Boundaries
The materiality process
was completed in 2013, so
there are no changes in
scope and boundaries in
relation to previous
reports.
G4-24
List of stakeholder
groups engaged by
the organization
About the
report/Materiality
G4-25
Basis for
identification and
selection of
stakeholders with
whom to engage
GRI Content/About the
report/Materiality
G4-26
Organization’s
approach to
stakeholder
engagement
Socio-Environmental
Management/Sustainable
Communications About
the report/Materiality
G4-27
For each group of
stakeholders, key
topics and concerns
that have been raised
through stakeholder
engagement
GRI Content/About the
report/Materiality
G4-28 Reporting period GRI Content/About the
report
G4-29 Date of most recent
previous report
GRI Content/About the
report
Description External
verification Page/Response
G4-30 Reporting cycle GRI Content/About the
report
G4-31
Contact for
questions regarding
the report or its
contents
GRI Content/About the
report
G4-32
‘In accordance’
option chosen by the
organization and the
location of the GRI
Content Index
GRI Content/About the
report
G4-33
Organization’s
policy and current
practice with regard
to seeking external
assurance for the
report
This second cycle of GRI
model-based reporting
does not have external
verification.
G4-34
Governance
structure of the
organization
Governance
G4-56
Organization’s
values, principles,
standards and norms
of behavior
Human Resource
Management/Essential
training
G4-DMA Form of
management
GHG emissions
profile/Logistics
G4-EC2
Financial
implications and
other risks and
opportunities arising
from climate change
GHG emissions
profile/Logistics
Description External
verification Page/Response
G4-DMA Form of
management
Human Resource
Management/Profile of our
associates
G4-EC6 Local hiring
Human Resource
Management/Profile of our
associates
G4-DMA Form of
management
Socio-Environmental
Management/Corporate
citizenship
G4-EC7
Impact of
infrastructure
investments
provided for public
benefit
Socio-Environmental
Management/Corporate
citizenship
G4-EC8
Description of
significant indirect
economic impacts
Socio-Environmental
Management/Corporate
citizenship
G4-DMA Form of
management
Socio-Environmental
Management/GHG
emissions profile
G4-EN3
Power consumption
within the
organization
Socio-Environmental
Management/GHG
emissions profile
G4-EN6 Reduction of energy
consumption
Socio-Environmental
Management/GHG
emissions profile
G4-DMA Form of
management -
Description External
verification Page/Response
G4-EN12
Significant impact of
activities, products
and services on
biodiversity
The Company’s
distribution centers and
administrative buildings
are not protected within
and/or adjacent to high
biodiversity areas. Thus,
the business does not have
any significant impact on
biodiversity.
G4-DMA Form of
management
Socio-Environmental
Management/GHG
emissions profile
G4-EN15 Direct emissions of
greenhouse gases
Socio-Environmental
Management/GHG
emissions profile
G4-EN16
Indirect emissions of
greenhouse gases
from power
purchases
Socio-Environmental
Management/GHG
emissions profile
G4-EN17
Other indirect
emissions of
greenhouse gases
GHG emissions profile
Description External
verification Page/Response
G4-EN21
Emissions of NOx,
SOx and other
significant
atmospheric
emissions
The Company’s operations
do not generate
atmospheric emissions
(persistent organic
pollutants, volatile organic
compounds, fugitive
emissions, hazardous air
pollutants, particulate
matter, etc.) in significant
quantities.
G4-DMA Form of
management
Socio-Environmental
Management
G4-EN26
Protected water
bodies and related
habitats, and
biodiversity value
All water used by the
organization is discharged
into the sewage treatment
network, with no
discharges that
significantly affect water
bodies and related habitats.
G4-DMA Form of
management
Socio-Environmental
Management/Opportunities
for eco-efficiency
G4-EN27
Initiatives to
mitigate
environmental
impacts
Socio-Environmental
Management/Opportunities
for eco-efficiency
Description External
verification Page/Response
G4-DMA Form of
management
Socio-Environmental
Management
G4-EN29
Value of significant
fines and total
number of sanctions
for non-compliance
with laws or
regulations
In 2013 there were no
significant fines or
penalties levied (i.e. those
over R$ 10,000) for
environmental non-
compliance.
G4-DMA Form of
management
GHG emissions
profile/Logistics
G4-EN30
Significant
environmental
impacts of
transporting
products and
members of the
workforce
GHG emissions
profile/Logistics
G4-DMA Form of
management
Socio-Environmental
Management/Opportunities
for eco-efficiency
G4-EN31
Total investments
and expenditures on
environmental
protection
Socio-Environmental
Management/Opportunities
for eco-efficiency
G4-DMA Form of
management
Human Resource
Management/Profile of our
associates
Description External
verification Page/Response
G4-LA2
Comparison of
employee benefits,
full-time vs.
temporary
All of our associates work
as full-time, indefinite-
term employees, therefore,
there has been no change
in the benefits the
Company offers.
G4-DMA Form of
management
Human Resource
Management/Profile of our
associates
G4-LA5
Percentage of total
workforce
represented in
formal health and
safety committees
Human Resource
Management/Profile of our
associates
G4-DMA Form of
management
Human Resource
Management/Investing in
talent
G4-LA9 Average hours of
training per year
Human Resource
Management/Investing in
talent
G4-LA11
Percentage of
employees receiving
performance reviews
Human Resource
Management/Investing in
talent
Description External
verification Page/Response
G4-DMA Form of
management
Customers: Our greatest
asset/Suppliers network
G4-HR6
Operations and
suppliers identified
as having significant
risk of forced or
compulsory labor,
and measures taken
Customers: Our greatest
asset/Suppliers network
G4-DMA Form of
management
Customers: Our greatest
asset/Suppliers network
G4-HR10
Percentage of new
suppliers that were
screened using
human rights criteria
Customers: Our greatest
asset/Suppliers network
G4-DMA Form of
management
Customers: Our greatest
asset/Quality control
G4-PR2
Non-compliance
related to the
impacts of products
and services
Customers: Our greatest
asset/Quality control
G4-DMA Form of
management
Customers: Our greatest
asset/Direct contact
Description External
verification Page/Response
G4-PR7
Incidents of non-
compliance
concerning
communications
about products and
services
Customers: Our greatest
asset/Direct contact
G4-PR8
Total number of
substantiated
complaints regarding
breaches of customer
privacy and losses of
customer data
Customers: Our greatest
asset/Privacy concerns
Masthead
COORDINATION
Institutional Relations Department
Sustainability Department
Investor Relations Department
GRI CONSULTING, WRITING AND EDITING
Report Sustentabilidade
PROOFREADING
Assertiva Produções Editoriais
GRAPHIC DESIGN AND LAYOUT
B2W Digital
PHOTOGRAPHY
Image Database
CORPORATE INFORMATION
B2W Digital – Head Offices
Address: Rua Sacadura Cabral, 102, Saúde, Rio de Janeiro, RJ. CEP: 20081-902