About this report

Samarco is making public, through this 2015-2016 Biennial Report, the main social, economic and environmental indicators which translate its performance in this period. With the challenge of maintaining the cycle of accountability, and, at the same time, clarify the initiatives undertaken to treat the impacts of the failure of the Fundão dam, once again we followed the guidelines of the GRI (Global Reporting Initiative), version G4, in the option Essential. G4-29, G4-30, G4-32

These have been particularly difficult years for the Company and all its stakeholders, especially communities, employees, contractors, suppliers and government entities. Trust, an essential element of its business strategy, was thoroughly shaken by the dam failure. As a result, Samarco is trying to gain it back through transparency, acknowledgment of the impacts and its responsibilities, and investment in social and environmental recovery.

The loss of lives,  the impacts to the environment, the losses suffered by the regional economies because of suspended operations, are critical themes which will be marked in the history of the communities and also of the Company and the Brazilian mining industry. This report, therefore, is the portrayal of a Samarco being reconstructed, which has a repercussion on the approach to the themes and the scope of the content.

In the development of the document, we considered the base of indicators and management themes which had already been used in past years, and the topics related to the failure of the Fundão dam – identified in the revision of materiality.

The updated list of relevant themes and the topics associated with the socioeconomic and socioenvironmental issues have guided the definition of the content and the base of GRI indicators of this report – in addition to certain sectoral indicators and others related to the methodology of  Sustainability Accounting Standards Board (SASB). In addition, we also opted to report some non material indicators which nevertheless directly meet the demands of society and the most critical matters for management. G4-18

Contrary to other previous reporting cycles, the Company has chosen to publish a report containing information on two years of activity. The first year, 2015, still saw Samarco operating normally and following its conventional routines up to the month of November. In 2016, on the other hand, we went through a critical period, with operations shut down and efforts to carry out the complex work of responding to emergencies, developing construction work, and implementing safety measures and dialogue with society and public authorities in order to allow the execution of long term recovery and remediation plans for the impacted areas.

Considering the moment of publication of this report (August 2017), the decision to issue a biannual report on an exceptional basis seeks to enhance the quality and scope of the information reported, clarifying to society all of the Company's work fronts. However, the track record and comparability of Samarco's performance in its GRI indicators were compromised, as described throughout the report – since some performance data are null or widely discrepant from those of 2015, due to the interruption of operations. The description of variations in the scope or reformulation of data is provided throughout the report, and also with graphic representation of the indicators which cover these two years. G4-22, G4-23, G4-28

The indicators refer to all Samarco operations in Brazil – in Minas Gerais and Espírito Santo – which is the same basis of the Financial Statements, available on www.samarco.com. The scope includes the Company's facilities, in addition to the emergency actions carried out up to August 2016. After this date, the progress of the socioenvironmental and socioeconomic actions will be communicated to society through Fundação Renova ( www.fundacaorenova.org).

As for external verification, as in former years we have provided for a limited assurance report about the compilation of the socioenvironmental information of the document (more information about the scope and procedures adopted in the Assurance Report). G4-17, G4-33

In terms of structuring of the content, we sought to focus on the current status of the Company, its plan for resuming operations, its results and the description of the failure of the Fundão dam, the emergency measures taken, the Framework Agreement (TTAC) and the constitution of Fundação Renova, which are themes essential in the view of the directly impacted stakeholders and society at large.  

As in previous years, the 2015-2016 Biennial Report will be supplied in a digital version, in Portuguese and English. We hope that over the next years we will be able to continue communicating about Samarco's performance through this publication.

At this time of enormous pressure from society to receive more information about what has been and will be done to mitigate the impacts, Samarco has the duty of keeping an open dialogue and providing all clarification. Therefore, any doubts related to the content of this document shall be responded to via e-mail relacionamento@samarco.com or through the Company's other social dialogue channels. G4-31

Next steps

Samarco continues to believe in the relevance of being accountable for its relations and its impacts. As a result, it plans to maintain its commitment of the past ten years or so and public performance reports, based on international standards and methodologies of transparency.

The Company will include in this report its social, environmental and economic results related to its operation, communicating as well the investments and resources allocated to Fundação Renova.