Local Development

Care, contribution and joint construction

We are driven daily by the purpose of integrating ourselves with the society’s demands to make them opportunities for development for everyone. We also strive to build deep, sound and reciprocal relationships with our stakeholders. We understand that in this way we will maintain the sustainable growth of the business and an ongoing, open and transparent dialogue with everyone.

Our way of being increasingly closer is to have constant communication for a real and constructive exchange of ideas with our audiences. For this, social investments are made based on an ongoing dialogue with our communities and agreements, aiming at building initiatives and solutions that make sense for the territory where we operate and the people who live there. We believe that this proximity enables the construction of a relevant legacy in the regions we operate, together with the communities.

Local Development

At Nexa, we work to build a relevant legacy in the regions where we operate, together with the communities.

The Local Development initiatives that we carry out in the communities are divided into two large groups: Investments related to some type of agreement or commitment with the community (Mandatory) and Voluntary Investments made by the company. The definitions of the types of investments, with their subdivisions, are presented below:

Investments Related to Social Agreements or Commitments

Social commitments due to operational impact

Commitments arising from formal agreements with public agencies or communities to mitigate operational impacts.

Mixed social commitment (Social + Environmental agreement)

Commitments arising from formal agreements that are included in both community agreements and environmental instruments.

Environmental commitment arising from environmental instrument

Commitments included in environmental instruments.

Social commitment from agreements made with the community

Commitments arising from agreements with local communities.

Social commitment through voluntary social investment pacts with the community

Pacting of Social Investment through a Social Agenda and a Local Development Plan with the communities in the areas of direct influence of the Units.

Voluntary Investment

Voluntary social investment

Investment not related to any agreement or social commitment.

Social Management

We seek to establish deep links with the communities where we are present and, for that purpose, we prioritize our local investment in four areas: Economic Development, Children and Youth, Socio-environmental, and Participation and Management.

Thus, we will manage to promote affirmative transformations for local development and guarantee that the rights of these communities are respected.

To achieve this goal, in 2020 we created a General Social Management Department within the Sustainability Executive Board.

Furthermore, we invested almost US$ 12 million in social actions and sponsored projects and initiatives in over 116 locations in Brazil and Peru in 2021.

Get to know our initiatives

To strengthen our relationship with the communities where we operate in Brazil and Peru, we created several programs and actions.

Overall, there are 254 projects aimed at communities, of which 166 are in Peru and 88 in Brazil, of which we highlight the following:

Vicuña Chain in Pasco, Peru

Local Economic Diversification Project – Mixed Social Commitment Project (Environmental + Social). Currently, 53 families benefit from the project, which seeks to improve the sustainability and productivity of vicuña farming in Pasco.

This initiative annually implements and cultivates 15 hectares of pastures, in addition to introducing genetic improvement modules, developing technical-productive and management skills in the participants, promoting transformation, and increasing the added value of the products from vicuña wool.

This initiative annually carries out the implementation and cultivation of 15 hectares of pastures, in addition to the introduction of genetic improvement modules, developing in the participants technical-productive and management skills, promoting the transformation and increasing the added value of products from vicuña wool.

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Tourism Chain – AGP Turismo

Tourism is one of the work fronts for local development in different municipalities where Nexa operates. In Três Marias, the strategy integrates local tourism with the municipality of São Gonçalo do Abaeté, connected by the São Francisco River in a regional Tourism Plan, aiming to strengthen and develop the potential of the two municipalities to drive tourism in the region, generating greater income and diversification of the local economy.

The initiative was born in a participatory manner, based on the Local Development Plan – PDL carried out with the communities, where public authorities and communities prioritized where and how they wanted Nexa’s voluntary social investment to be carried out.

The creation of the Beira Rio – São Gonçalo do Abaeté logo as a tourist destination is a strategy to present the destination, with the objective of increasing the income generated by tourism by increasing the circulation of visitors in the region.

Somos Todos

Volunteering program present in 10 locations in Brazil and Peru that contributes to the creation of a joint legacy with the community. It is aimed at promoting social participation and developing local networks and alliances, thereby providing dialogue and greater engagement of communities and businesses for local sustainable development. Discover some of the actions of this initiative:

- Reading promotion, vocational guidance, mentoring, and tutoring program (mathematical and logical) for high school students;

- Programs to promote female empowerment and gender equity, with emphasis on workshops on entrepreneurship, mental health, and female leadership;

- Programs on environmental preservation;

- Actions aimed at improving local infrastructure and encouraging tourism;

- School infrastructure actions;

- Collection, delivery of food and hygiene materials to economically vulnerable families and victims of floods in Minas Gerais, in addition to the collection of items focused on the prevention of Covid-19, such as the Máscaras do Bem Action, in Três Marias, which made and distributed protective masks.

Yellow line

Aiming to contribute to the local development of the areas where it operates, Nexa delivered over 6million soles to the rural community of Chavin, in Ica, Peru, for the purchase of a machine park comprising a front loader, a backhoe, a bulldozer and an excavator.

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Sheep Chain

The project’s main objective is to increase the economic income of families dedicated to raising sheep, through improvements in business management skills. It takes place in three areas in the district of San Francisco de Asís de Yarusyacán: Ayuque, Machcan and Huancamachay, benefiting 150 families.

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Our aspiration

Our aspiration is to build a relevant social legacy in the communities, acting proactively to drive the socioeconomic development of the localities and enhance income generation with a view to economic and social autonomy.

Check our indicators

Proportion of spending on local suppliers

Correlated indicators

GRI Dimension:

Economic

GRI Code:

204-1

SDG

Proportion of spending on local suppliers
	2019	2020	2021
Total amount spent with suppliers (US$ milhões)	1.957,11	1054,23	2.194,40
% of spending with local suppliers¹	3,1%	2,7%	3,8%

¹ Person or organization that provides a product or service to the reporting organization and is geographically based in the same market as the reporting organization (i.e. no transnational payment to the supplier is made). The geographic definition of "local" can include the community surrounding the operations, the region within a country, or a country. According to VID's Local Supplier Development Policy, local suppliers are defined as those located within the area of influence of Votorantim Industrial's operations, using local labor, collecting taxes and generating jobs in the region.

Operations with local community engagement, impact assessments, and development programs

Correlated indicators

GRI Dimension:

Social

GRI Code:

413-1

SDG

Operations with local community engagement, impact assessments, and development programs
	2019	2020	2021
Total investment in social actions	US$ 14,5 milhões	US$ 8,8 milhões	US$ 11,9 milhões
Total projects and initiatives	145 projects in 17 locations in Brazil and Peru, benefiting more than 44,000 people	132 projects in 17 locations in Brazil and Peru, benefiting more than 20,000 people	320 projects in 116 locations in Brazil and Peru

Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process

Correlated indicators

GRI Dimension:

Social

GRI Code:

MM9

Locais onde ocorreram Reassentamentos
2019	none
2020	none
2021	none

Our contribution to the SDGs

SDGs related to the topic:

In 2017, we signed a commitment to the global agenda consisting of 17 goals and 169 targets to be achieved by 2030.

Local Development

Care, contribution and joint construction