2020 Annual Report

Initiatives to Combat COVID-19

Addressing the global effects of the coronavirus pandemic posed unprecedented challenges to society, in the health, social and economic spheres. In this context, under the coordination and operation of the Votorantim Institute, the holding company and the portfolio companies reaffirmed their commitment to citizenship through health initiatives both in the communities where they operate and also involving employees and other stakeholders, such as suppliers and clients. In early March, the companies established interdisciplinary technical groups or crisis committees to address the issue. They immediately decided on the adoption of internal measures to combat the pandemic, including remote working for employees in corporate offices, restrictions on business travel and in-person meetings, and the adoption of strict safety protocols, with flexible work schedules and the reinforcement of sanitization measures in the units.

Beyond the corporate scope, together with the portfolio companies and the shareholder family, Votorantim donated approximately R$ 150 million to develop more than 400 initiatives, which included the acquisition and donation of personal protective equipment (PPE) and hospital equipment, maintenance of ventilators in partnership with the National Service for Industrial Training (Serviço Nacional de Aprendizagem Industrial, SENAI), telemedicine projects in the municipalities, and mentoring to help local governments address the pandemic. Closing the cycle of support during the pandemic, the Votorantim Institute announced its participation, through funds from Votorantim and banco BV, in the adaptation of vaccine plants in Rio de Janeiro  and São Paulo, which will give Brazil more autonomy in supplying the coronavirus vaccines.

The distribution of donated resources was based on extensive work carried out to support Brazilian municipalities, which began with the identification of the most vulnerable towns and cities using criteria such as the size of the elderly population, number of hospital beds and local infrastructure. This led to the creation of the Municipal Vulnerability Index (Índice de Vulnerabilidade Municipal, IVM) by the Votorantim Institute, to map the pandemic in Brazil and inform the society at large.

Another endeavor included the redirection of social projects underway in the municipalities where Votorantim companies operate with activities to combat the coronavirus. One example is the Support for Public Management program (Apoio à Gestão Pública, AGP), started eight years ago by the Votorantim Institute in partnership with the National Development Bank (Banco Nacional de Desenvolvimento, Econômico e Social, BNDES). In 2020, the program included the AGP Corona initiative, which served more than 150 Brazilian towns with up to 350,000 residents and which suffered a medium to high risk of vulnerability to the pandemic, through virtual advice sessions on how to best manage the crisis.

All initiatives benefited from technical support from BP – A Beneficência Portuguesa de São Paulo, a benchmark medical organization. The activities included support in the definition and acquisition of items for donation and webinars hosted by specialists on clinical and epidemiological aspects of the disease from the organization (learn more).

Given the commitment to measuring the results of its initiatives, independent assessments have been conducted since September 2020 to evaluate the impact of projects aimed at addressing the pandemic. Data analyzed so far indicate a significant impact in reducing the number of COVID-19 cases and deaths. Until the first business day of December 2020, considering only the activities of the mentoring program offered to the municipalities, 33,800 COVID-19 cases and 973 associated deaths had been avoided in the evaluated group, which included 144 municipalities. Considering the group of 183 municipalities where PPE was also donated to health teams, the number of COVID-19 cases and related deaths dropped by 115,000 and approximately 3,700, respectively, in the same period. It is estimated that, considering the avoided costs of ICU admissions alone, these initiatives resulted in savings of more than R$ 405 million to the government. The Votorantim Institute will conduct periodic rounds of impact assessment of its activities related to the pandemic until 2022, to measure health, educational and economic results.

Considering that the pandemic and its effects will remain a major social challenge in 2021, the Votorantim Institute will maintain activities focused on strengthening public health policies, accelerating economic recovery and maintaining fiscal balance in the municipalities.

The Relationship of Votorantim with BP – A Beneficência Portuguesa de São Paulo
Antonio Pereira Ignacio, the Portuguese founder of Votorantim, started the relationship between the shareholder family and BP – A Beneficência Portuguesa de São Paulo in the 1920s through donations and participation in management positions. After his death, José Ermírio de Moraes became the first non-Portuguese president over the organization. During his administration, in 1957, the hospital was inaugurated, with 440 beds and an area of more than 25,000 m²; at the time, it was considered the largest and most modern private hospital in Latin America. Antônio Ermírio de Moraes then became the president of the hospital, a position he occupied for more than 40 years. Mário Ermírio de Moraes participated in the institution as vice president and Rubens Ermírio serves as chairman, totaling four generations of the shareholder family involved in BP’s management, contributing to its modernization, expansion and management.