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Sacerdotes, religiosas y simples fieles a merced del demonio

Following the Sustainability guidelines that the company adopted, waste sorting at the main administrative buildings was extensive during 2009.

The company collected 163.42 tons of recyclable material (see chart).

WaSte SortinG - by Material

2% metal 1% glass

90% paper and cardboard

7% plastic

Waste Sorting – by material

The employees played a leading role in this result given that the correct sorting of materials in the specific containers is an important contributor to the process. This fact was stressed by Oi in several campaigns for environmental education and the responsible use of resources.

Oi’s waste sorting benefits the environment and the communi- ties’ lives, generating income for waste pickers. Partnerships are also sealed with the local governments and with private recycling companies.

ELECTRICITy

Among the actions implemented by the company to reduce electricity consumption, we highlight some that were developed at the main plants:

replacement of aging air-conditioning systems,

replacement of internal air-conditioning units with high energy

consumption,

the optimization of the air conditioning with the adaptation of

ambiences, among others.

These actions helped to save 15.79 GWh in 2009.

In addition, about 9% of the electricity consumed at Oi is sup- plied by small hydroelectric plants and biomass, contributing to the use of renewable energy.

EnERGy EFFICIEnCy

The energy efficiency project encompasses the reduction of spending on electricity at Oi’s 44 largest buildings, by changing lighting and by automating the air-conditioning system. This decreased power consumption by 10.53 GWh in 2009.

WATER

Oi has been developing actions to reduce water consumption and we highlight the following:

monitoring the water meters,

installation of air-eliminating system,

utilization of consumption deflators for taps, showers and

toilets,

reactivation of wells at the branches in PI, CE, PE, PA in order

to reutilize water in certain activities, training of the cleaning staff.

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DISPOSAL OF BATTERIES AnD HAnDSETS

Oi provides containers at franchised and Oi-owned stores for the collection of handsets, batteries and their respective accesso- ries, in order to contribute to environmental preservation and to comply with the Federal Regulation enforced by the Admi- nistrative Act 401/08, issued by the National Council on the Environment (Conama).

This collection is performed in a partnership with a company specializing in reverse logistics, which disposes of batteries in an environmentally-friendly manner.

Besides expanding this initiative to its employees, the company installed collection containers at 40 administrative buildings, performing internal campaigns on environmental awareness. ADDITIOnAL ACTIOnS

In 2009, the company reduced traveling between the company’s subsidiaries, stimulating the use of videoconferencing. As a result, the company saved funds and contributed to the environment.

The company also reduced its corporate fleet by 25% and adjus- ted its maintenance services for better efficiency. In addition, it started to use alternative fuels and to dry wash the buildings in Rio de Janeiro, Bahia, Ceará and Pernambuco. Dry washing uti- lizes biodegradable products, thus reducing water consumption. Another action focused on environmental responsibility was the standardization of all printers for two-sided printing, cutting the number of printed pages by 6 million in 2009.

The implementation of the following projects is forecasted for 2010:

Use of runoff water:

• consists in a system to impound runoff water and use it in air conditioning towers, cooling systems and in other non-drinking applications. Among the benefits there is a reduction in water consumption estimated at 30%, compliance with the environmental legislation and better utilization of runoff water, reducing the accumulation of water in the cities;

Environmentally-correct management and disposal of

lamps: consists in the collection, treatment and adequate arrangement of fluorescent lamps, mercury steam, mixed light, sodium steam and other lamps;

Sustainable Lighting:

• thanks to the utilization of efficient equipment, the project will enhance the users’ optical performance, improving lighting and decreasing energy consumption.

This partnership occurs in several states:

Alagoas – Through the Cooperative of Urban Waste Pickers of Maceió, managed by the city hall, the collected material is donated to cooperatives of waste pickers and forwarded to the production chain. The collected material generates employment and reduces the amount of trash disposed of improperly;

Bahia – The partnership was sealed with the Cooperative of Self-Employed Agents of Responsible Recycling (Coopcicla), which is the first cooperative of waste pickers in Salvador. It was created in 1995 by the Urban Cleaning Company and by the Organization of Cooperatives in Bahia, underpinned by the government in the process of picking up recyclable materials. The waste pickers are registered, trained and qualified accor- ding to a methodology designed by the Brazilian Business Com- mitment to Recycling. Coopcicla develops waste sorting and sells such materials in order to offer benefits to its members such as lunches, medical care, medicine to members and their families. It also organizes parties and gives away treats;

Ceará – The partnership was sealed with the Community Association of Garbage Recycling, which collects the material directly at the branch’s offices. The waste is collected, sorted and sent to paper and plastic plants, among other places. The income from this activity is assigned to cooperative members;

Maranhão – Stemming from an agreement sealed with the city hall of São Luís, through Semosp, the Association of Recyclable Waste Pickers is the final partner in waste sorting. The collected material is picked up by the city hall through the waste sorting service and delivered to the Association, which sorts and sells it. Revenue is distributed among the members. Set up in April 2004, the Association stemmed from the support of the city hall of São Luís to the organization of waste pickers to start the waste sorting process;

Piauí – The Piauí State Association of Collectors of Recyclable Materials and Solid Waste was selected because it holds the public usefulness recognition by the City and State legislation. The collected waste is directly delivered to the Association, which sorts it and shares the proceeds among its members. Besides advising the waste pickers on the types of available recyclable materials, the Association organizes its activities in order to raise the community’s awareness on the importance of this work ;

Rio Grande do norte – The partnership was entered into with the Association of Recyclable Material Collectors, managed by the city of Natal. The material is sent to a recycling company;

Sergipe – The partnership was entered into with the Cooperati- ve of Autonomous Recycling Agents, in Aracaju, an institution whose organization was stimulated by the Department of Justice in order to help waste pickers who live near the city’s landfill. Several families who previously collected garbage lost their incomes when the Department of Justice required that the city build a landfill and prevent people from entering the area. The solution was to constitute a cooperative to employ and teach them how to work with reusable materials.

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anNual report 2009

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EDUCATIOn FOR SUSTAInABILITy

Communication may stimulate the creation of the organizational culture. Oi has also been conducting Education for Sustaina- bility alongside its employees, through internal campaigns and trainings.

For instance, on the World Car Free Day, the company encou- raged its employees to use public transportation, take a ride or walk to work. Some articles with information on this subject were posted on the intranet. The company encouraged the employees to interact among themselves through the corporate intranet. Awareness efforts were made internally for the responsible use of resources. These were conveyed via email, through news on the corporate intranet, by computer wallpapers, banners and bulleting board. Moreover, stickers were placed on the busiest areas such as washrooms, elevators and cafeterias to encourage the employees to protect the environment in their daily routines. In addition to these efforts, an e-learning project on Sustaina- bility was launched in 2009. It presents this concept to the employees, raising their awareness to the importance of prac- ticing these values, also showing the company’s commitment to Sustainability. About 1.500 employees finished the training, adding this important knowledge to their lives. The employe- es took part in workshops in which the theme Sustainability, demonstrating how the company deals with this issue in its internal and external actions.

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In 2009, Oi generated R$17.1 billion in consolidated value ad- ded, 31% more than in 2008, demonstrating how the company distributed the wealth it generated in its activities. Of the value added that is yet to be distributed, which accounts for 37.3% of the year’s gross revenue, as much as 64.9% were earmarked for the public purse by means of taxes.