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Society SOCIO-ENVIRONMENTAL RESPONSIBILITY |G4-DMA: Energy, G4-DMA: Water, G4-DMA: Emissions, G4-DMA: Effluent and waste The MASS Policy also guides Embraer's En- vironmental actions, having among its princi- ples respect for the environment, the pursuit of eco-efficiency and the management of the company's products' life cycle. GREENHOUSE GASES (GHG) Since 2012, Embraer has been a signatory party of the aerospace industry's sustain- ability commitment that establishes two of the industry's key goals: carbon neutral growth by 2020 and a 50% reduction in net aviation CO2 emissions by 2050, consider- ing 2005 levels. Each year, Embraer disclos- es an inventory of GHG emissions certified by ISO 14064 and audited by Lloyd's Reg- ister Quality Assurance (LRQA) (see emis- sion inventory results in GRI Indicators). |G4-EN15, G4-EN16, G4-EN17, G4-EN18, G4-EN19, G4-EN20, G4-EN21❘ Energy and water In 2016, energy consumption totaled 176,889 MWh, a higher value than in 2015, mainly due to the increase of installations and work forces in units of the United States and Portugal. A savings of 2,498 MWh/year was also recorded due to initiatives, such as the modernization of hangar lighting sys- tems, installation of photovoltaic panels, and replacement of tubular fluorescent bulbs with LED lights. This year, the company also hired a consultancy in order to identify improvement opportunities related to the reduction of en- ergy consumption at the Faria Lima, Eugênio de Melo, Taubaté and ELEB units (see more about energy consumption and its reductions in GRI Indicators). |G4-EN3, G4-EN6| and n the Environment During the fiscal year the company consumed 1,127,226 m³ of water, reusing 5%. [G4-EN8, G4-EN10| Effluent and Waste The company's units discard their effluents in the public network, with the exception of Tau- baté and Gavião Peixoto, Brazil, which discard effluents in the Boçoroca and Mulada streams, respectively. This is possible because they have their own Sewage Treatment Plants (ETE, in Portuguese), and the Gavião Peixoto ETE stands out for its removal of nitrogen-based material (ammonium, nitrite, nitrate) and the reuse of water. The volume discarded is less than the supporting capacity of the water bod- ies and both are outside the Environmental Protected Areas (APA, in Portuguese) (see water disposal broken down by treatment and destination in GRI Indicators). [G4-EN22| Embraer waste management is carried out by third-party companies, specialized in process- ing and decontaminating materials for reuse or responsible disposal (see total weight of generated waste and their destinations in GRI Indicators). [G4-EN23| Sector partnerships |G4-15, G4-16| Embraer establishes dialogs with associa- tions, entities, multilateral organizations and voluntary initiatives in order to contribute to the formulation of public policies concerning the aerospace sector. These relationships are regulated by guidelines stated in the Code of Ethics and Conduct and monitored by the Compliance Program (see page 18). This year, a topic that involved the sector concerned Brazilian Law No. 258/2016, which instituted the modernization of the Brazilian Aero- nautics Code. The current document is from 1986, prior to the current Brazilian Constitution, the Consumer Defense Code, the new Civil Code and the National Civil Aviation Agency. This is an important debate tak- ing place in Brazil's Senate. The Brazilian Aerospace Industries Associ- ation (AIAB, in Portuguese), in which the company participates on the Board of Executive Officers, was a member of the expert committee that analyzed this reform. Embraer has also been attentive to discussions about easing sanc- tions on Iran, allowing the sale of commercial aircraft under license from the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department, and on the change of European law to allow the transfer of data between Brazil and the U.S. The company also favored setting limits for state support in the de- velopment and maintenance of aeronautical projects. During the year, Brazil appealed to the World Trade Organization (WTO) against subsi- dies granted by the province of Quebec (Canada) for the development of the Canadian C Series commercial aircraft model, a direct rival of the E-Jets, which aggravated the price dispute in commercial aviation. This is a sensitive issue to maintain a level playing field. After six years of negotiations between governments, environmental groups and members of the aviation industry, including Embraer, the International Civil Aviation Organization (ICAO) introduced the first stan- dard for certification of CO2 emissions in aviation. The standard seeks to promote the reduction of CO2 emissions from aircraft, encouraging the integration of fuel-efficient technologies in the design and devel- opment of aircraft. The CO2 standard will be applied to all new aircraft models launched after 2020 and also, progressively, to all aircraft in use starting in 2023, even if designed and launched before 2020. During the ICAO October meeting, the 191 member countries also agreed to implement a Carbon Offset and Reduction Scheme for Inter- national Aviation (CORSIA). The agreement will add to other industry ef- forts to address climate change (see Embraer's participation in nation- al and international associations and organizations in GRI Indicators). LETTERS, PRINCIPLES AND OTHER EXTERNALLY DEVELOPED INITIATIVES |G4-15| Stakeholders involved Name UN Global Compact Date of adoption 2008 Scope Global Initiative Towards sustainable 2012 Global Kerosene for Aviation (ITAKA) Friends of Rio+20 2012 Global Commitment to reducing GHG 2012 Global emissions in aviation (ICAO/ATAG) Call to Action 2014 Global Brazil (with world impact potential) Suppliers, manufacturers, transportation com- panies and organizations from different sectors Suppliers, manufacturers, transportation com- panies and aerospace sector organizations Organizations from various sectors Suppliers, manufacturers, transportation compa- nies and organizations from the aerospace sector Suppliers, manufacturers, transportation com- panies and organizations from different sectors Partnership with Boeing Partnership with Boeing Bio-fuel research center 2015 EcoDemonstrator 2016 Technology test for improving environmental performance of product

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