GPA’s sustainability strategy is guided by eco-efficiency in construction and in the management of the day-to-day operations. Environmental impacts are monitored, to create initiatives to mitigate them and make the activities more sustainable.

At Extra and Pão de Açúcar stores, efforts are focused on reducing greenhouse gas emissions, energy consumption and the risks of transporting products. Green Yellow, Casino’s arm specialized on energy performance, developed a plan for Extra stores, and expects decreases in energy use of up to 25% per store (learn more at Green Yellow).

In logistics, the Backhaul initiative, which optimizes processes for distributing products, by having trucks not return empty after delivering products, but loaded with articles from some supplier, continued. In addition to productivity gains, the action also reduces the number of kilometers travelled and, consequently, lowers CO₂ emissions. In 2013, 54 suppliers participated in the initiative, totaling 44,475 trips to collect products from the suppliers, an increase of 25% over 2012. For 2014, the goal is to decrease the number of kilometers traveled by more than 1,800, to reduce CO₂ emissions by 1.4 metric tons. <EN29>

At Assaí, electricity consumption decreased with the deployment of glass facades, which entail benefits such as thermal and visual comfort, ease of access in rainy periods and reduced generator and air conditioning noise. For 2014, the objective is to more intensively exploit the roof to generate energy and reuse stored rainwater. During the year, studies were initiated to assess the feasibility of deploying systems for reusing rainwater and using solar panels and wind power, among other systems, in at least two new stores in 2014.

REDUCTION OF CO2 EMISSIONS AND KILOMETERS TRAVELLED IN THE BACKHAUL PROJECT <EN29>
	2011	2012	2013
Kilometers travelled (thousands)	669	937	1,619
CO2  emissions (t)	701	719	1,247

Emissions

With the support of an external consultant, GPA has developed, since 2010, its inventory of carbon emissions, following the specifications of the Programa Brasileiro GHG Protocol. Qualifying emissions as direct and indirect within scopes 1, 2 and 3 utilizes the methodologies of the Intergovernmental Panel on Climate Change (IPCC- 2006 and IPCC 2000, for the generation of electricity, other combustion processes, transport of materials and products and wastes), the Department for Environment, Food and Rural Affairs (DEFRA), for air travel, and the World Resource Institute (WRI/WBCSD GHG Protocol Initiative), for electricity purchases.

For other combustion processes, emissions from the fleet of utility vehicles was included. In 2013, Via Varejo automobiles also began to be contemplated, increasing the coverage of the accounting. For the transport of materials, the large decrease in emissions was mainly due to the migration to outsourced transport. In relation to the emissions from gas leaks, the increase was proportional to the growth of the stores, which utilize refrigerants, and also to replacing gases that destroy the ozone layer with harmless gases. With the Group’s expansion, energy consumption increased 7%. In addition, the use of thermoelectric power plants (which burn fossil fuel) was higher in 2013 than in 2012, increasing the Group’s emissions by 18%.<EN18>

Indirect emissions include transport by light vehicle, the fleet of outsourced vehicles, employee transport, taxi use, executive air travel, the treatment of solid waste, composting, and paper consumption at the office and in advertising. The large change at the beginning of 2013 is explained by the inclusion of Via Varejo’s outsourced fleet.

INDIRECT EMISSIONS (IN METRIC TONS OF CO2 EQUIVALENTS)2<EN16>
Indirect emissions (in metric tons of CO2 equivalents)2
	2011	2012	2013	Variation (%)
Generation of electricity, heat or stream that is bought	35,508.01	90,163.82	141,210.89	56.62
Total direct and indirect emissions	133,506.29	182,027.31	214,708.27	17.95
1Includes GPA, GPA distribution centers, Extra Hiper, Extra Super, Minimercado Extra, Pão de Açúcar, GPA fuel stations, GPA drugstores, Assaí, Assaí distribution centers, NovaPontoCom distribution centers, Nova Pontocom, Via Varejo, Via Varejo distribution centers, Casas Bahia and Pontofrio. 2Does not include emissions caused by travel.

INDIRECT EMISSIONS OF GREENHOUSE GASSES BY SOURCE (IN METRIC TONS OF CO2 EQUIVALENTS)1<EN17>
Indirect emissions of greenhouse gasses by source (in metric tons of CO2 equivalents)1
	2011	2012	2013	Variation (%)
Employee transport	-	-	705.71	-
Business trips	2,838.06	3,521.59	3,498.	–0.67
Other emissions	46,610.78	70,041.88	160,159.39	128.66
Total direct and indirect emissions (in metric tons of CO2)	49,448.84	73,563.47	164,363.1	123.43
1Includes GPA, GPA distribution centers, Extra Hiper, Extra Super, Minimercado Extra, Pão de Açúcar, GPA fuel stations, GPA drugstores, Assaí, Assaí distribution centers, NovaPontoCom distribution centers, Nova Pontocom, Via Varejo, Via Varejo distribution centers, Casas Bahia and Pontofrio.

2011 <EN19>
Type of gas	Consumption (metric tons)	Ozone Depletion Potential	Metric tons eq of CFC11
R-22	180.14	0.055	9.91
2012 <EN19>
Type of gas	Consumption (metric tons)	Ozone Depletion Potential	Metric tons eq of CFC11
R-12	0.27	1	0.27
R-141 B	0.22	0.033	0.01
R-22	200.27	0.11	22.03
R-124	0.04	0.02	0.001
2013 <EN19>
Type of gas	Consumption (metric tons)	Ozone Depletion Potential (ODP)1	Metric tons eq of CFC11
R-12	0.034	1	0.34
R-141 B	0.016	0.033	0.01
R-222	186.6	0.11	20.53
R-124	0.02	0.02	0.0004

Energy Consumption <EN3, EN4 and EN5>

GPA maintains ongoing programs to reduce energy consumption at its operations. Since 2011, the Company has had an Internal Commission on Energy Consumption, which identifies actions with this focus. In 2013, GPA saved 17,272 GJ of energy from the initiatives – Replacing the lighting systems with more efficient lighting at 65 stores (3 with LED illumination) and dedicated automation for food coolers in an Extra store.

In addition, other energy-saving initiatives we implemented – Replacing electric air conditioning with air conditioning powered by natural gas at 2 stores, replacing LPG with natural gas at 1 store, and buying renewable energy in the free energy market at another 19 stores, totaling 112 units.

Direct non-renewable energy (GJ)1
	2012	2013
Natural gas	57,942.00	83,709.69
Liquefied Petroleum Gas (LPG)	289,721.00	267,992.232
Diesel	95,040.00	505,070.40
Total non-renewable energy	442,703	856,772.32
1The information reported does not include direct energy in relation to our own fleet. 2The significant increase in energy consumption was due to the commencement of Via Varejo’s use of LPG in 2013.

ELECTRICITY, HEATING AND REFRIGERATION FROM NON-RENEWABLE SOURCES THAT IS BOUGHT AND CONSUMED (GJ)
Electricity, heating and refrigeration from non-renewable sources that is bought and consumed (GJ)
	2012	2013
Electricity	2,845,044.00	2,759,601.02
Total non-renewable energy purchased (GJ)	2,845,044.00	2,759,601.02
Electricity, heating and refrigeration from renewable sources that is bought and consumed (GJ)
Renewable sources (mixed source)	454,636.00	796,578.04
Hydroelectric	124,603.00	764,180.79
Biomass	609,862.00	575,244.84
Total renewable energy purchased (GJ)	1,189,101.00	2,136,003.66
Total energy purchased (GJ)	4,034,145.00	4,895,604.68

Green Yellow

In 2013, GPA introduced an energy efficiency program developed by a company in the Casino Group, Green Yellow. Created in 2008, Green Yellow is active in hypermarkets in France and Colombia, with solar panel and energy efficiency projects.

Testing began at the end of 2013 at three Extra hypermarkets in the Mooca, Freguesia do Ó, and Ricardo Jafet neighborhoods in São Paulo. The objective is to evaluate consumption at the stores and their potential to reduce and identify suppliers and partners that can add to the development of the project.

In the end, Green Yellow will present intelligent solutions to GPA that should pay for themselves, given the energy savings. The Company expects to reduce store consumption 25%, i.e. at the same levels seen in France and Colombia. The goal for 2014 is to take the project to 30 stores in the Group.

Green Yellow’s initial focus is the energy efficiency program, but the possibility of installing solar panels on the roofs and parking lots of Group stores is being studied.

Integrated waste management

One of GPA’s preoccupations is minimizing environmental impacts at its operations. Accordingly, the Company has worked in partnership with other companies to deploy initiatives in line with the National Policy on Solid Wastes. At retail, the objective is to send the least amount of waste possible to landfills, and diminish impact.

The first action was taken in 2008, in partnership with a national supplier, with a pilot in the first Pão de Açúcar green store, in Indaiatuba (SP). Currently, the initiative serves 25 Pão de Açúcar stores and 56 Extra stores. The process consists of segregating four types of materials: recyclables (paper, plastic), organics, wood and other refuse. The recyclable materials are sent to be recycled, the organic wastes to produce animal feed and compost, and the wood is transformed into furniture. Only other refuse is sent to licensed landfills.

In 2012, one of Brazil’s largest environmental services companies also became a partner, with the mission of developing a project that facilitates Company compliance with the requirements of the PNRS. The company is active at seven distribution centers, 301 retail stores, 2 idle asset and equipment management units and 37 drugstores.

NON-HAZARDOUS WASTE (T) 1 <EN22 and EN24>
	2013
Compost	9,285.00
Recycling²	82,887
Recuperation (including energy recuperation)	38.10
Landfill²	743,416
Total	835,626.1
Hazardous waste (t)1,3
	2013
Recycling	79.31
Recuperation (including energy recuperation)	10.77
Incineration (burning mass)	20.71
Landfill	9.60
Total	120.39
1Numbers include Retail Food, Via Varejo, Assaí and Nova Pontocom. 2The values of recycling and landfill were not insured. 3In 2013, GPA transported 38 metric tons of hazardous waste (batteries, light bulbs and medicines).

Water <EN8, EN9 and EN10>

The water consumed at the Group’s stores and headquarters comes from the public system. At the Via Varejo distribution center in Jundiaí, the water comes from wells and the capture of rainwater. In 2013, the Company reutilized approximately 1% of all water consumed, through treatment of the runoff, the reuse of water from the air conditioning tower, and rain capture.

WATER CONSUMPTION
Volumn (m³)	2013
Surface	284
Ground	156,921
Rain collection	1,091
Other sources (recycled)	30,216
Public utility/supply company	4,118,221
Total	4,306,733

WATER DISPOSAL <EN21>
Volumn (m³)	2012	2013
Public sewage system	2,302,812	2,161,454.55
Sewage treatment station	445,785	535,460.38
Discharge directly into rivers or other bodies of water	479,789	491,444.25

Packaging <EN2>

In 2013, the quantity of recycled materials used in packaging diminished, due to changes in the portfolio and launches of new products – with other packaging formats. For 2014, the objective is to increase the utilization of pulp-based materials by 10%, to contribute to manufacturing recycled cardboard, the raw material required for packaging exclusive brand products. The program, formerly called the Green Cycle, is now called "New (re)New" (Novo de Novo) and was expanded to all exclusive brand products (learn more at the New (re)New Program).

The New (re)New Program
In 2009, GPA initiated a program to reutilize packaging, based on the reverse logistics concept. Initially called the Taeq Green Cycle, the principal objective was to launch products whose packaging would utilize some of the material collected at the Group’s stores. The program also motivates customers to contribute to recycling stations, through a sustainable and innovative waste management model led by the Group’s exclusive brands.

The process involves purchasing pulp-based materials from cooperatives registered with the Group and transforming them through recycling. The packaging is delivered to the manufacturers, which deliver to GPA stores

Since program inception, more than 1,000 metric tons of recyclable pulp-based materials have been transformed into raw materials for packaging. In 2013, the initiative was expanded to all exclusive brand products, and laminated carton packaging known as "Long-Life Packaging" was added to the pulp-based packaging in the program. The first products packaged with paperboard from the recycled long-life packaging arrived on the shelves in November, with Taeq Teas and the Qualitá Kids Jelly.

MATERIAL COLLECTED BY THE COOPERATIVES AND SENT TO THE PROGRAM
Year	2010	2011	2012	2013
Metric tons	400	450	307	710

Impacts on biodiversity <EN11, EN12 and EN14>

The impacts on biodiversity resulting from the process of building stores generally involve only the suppression of the local flora at the time the units are installed. The Group has adopted operational controls for each environmental aspect arising from its activities, through monitoring and management, in accordance with applicable environmental law and standards.

After installing the stores, the Group considers environmental impacts in its decisions in connection with creating and maintaining the structure needed to make ongoing improvements and implement and revise the established goals and objectives. In addition, it seeks to continue to improve and prevent through Environmental Management Programs, and keep teams ready to conduct environmental analyses for projects.

In other cases, it forms agreements with local governments, requesting authorization to remove trees from the property and plant other species, as a form of environmental offset.