Annual Report 2011

Annual Report
2011
1
Summary
About Us
02
Major Highlights of 2011
03
Institutional Representation
07
Awards and Distinctions
08
Corporate Governance
11
Project Management
14
Financial Audit
15
Team
20
Partners of 2011
23
Credits
25
2
About Us
Civil non-profit organization founded in April 1998 by the couple, Lélia Deluiz Wanick
and Sebastião Salgado, the Instituto Terra works in the region of the Doce River Valley,
between the states of Minas Gerais and Espírito Santo. This is a region of Brazil which
lives the consequences of the deforestation and the uncontrolled use of natural resources
such as drought, soil erosion and lack of conditions for the farmers to live and thrive.
Its major actions involve ecosystem restoration, Atlantic Forest seedling production,
environmental outreach, environmental education and applied scientific research.
Established in the city of Aimorés, east of Minas Gerais, Instituto Terra consists of a
total area of 709,84 hectares, of those, 608,69 hectares are recognized as a Private
Natural Heritage Reserve (PNHR) Bulcão Farm since its foundation – it is the first
formed PNHR in degraded area of the Atlantic Forest.
With the reforestation of the PNHR Bulcão Farm, Instituto Terra is close to completing
a project to recover part of the unprecedented Atlantic Forest in Brazil, in terms of
continuous area. The first planting was done in December 1999 and since then 549.80
hectares have already been worked in the area.
In the year 2011 Instituto Terra obtained the titles of state public utility by the state of
Espírito Santo and of federal public utility. Notice that Instituto Terra also has the titles
of municipal public utility by Aimorés (1999) and state by Minas Gerais (2005).
Through numerous projects undertaken since its founding, other significant results were
achieved, such as:
- The ecosystem restoration projects totaling more than 5.500 hectares of degraded areas
of the Atlantic Forest in the recovery process in the region of the Doce River Valley
- More than 3.5 million seedlings produced, of 293 species of the Atlantic Forest
- More than 700 educational projects developed for an audience of more than 65
thousand people
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Major highlights of 2011
PROJECT “HONEY HOUSE” COMPLETED an initiative of Instituto Terra in order to
make the production of honey a new allied to the Atlantic Forest conservation for 500
small farmers of the Doce River Valley. Developed with the international cooperation
of the Government of Emilia-Romagna and Legambiente, a leading environmental
associations of Italy, the initiative came as a stimulus for the modernization and
reorganization of the activity of beekeeping in the region served, by promoting an
increase in the production of honey and its derivatives, establishing a source of
additional income for rural households and by helping the reduction the rate of rural
exodus. Also participating as Project partners were, Sebrae – Brazilian Support Service
for Micro and Small Enterprises in Minas Gerais and Espírito Santo and the
Municipality of Colatina. The Project involved the Honey House beekeepers seven
municipalities of the region of Aimorés – Aimorés, Itueta, Santa Rita do Ituêto,
Resplendor, Mutum, Conselheiro Pena e Pocrane – as well as the municipalities of
Baixo Guandu, Colatina (Itapina), Laranja da Terra, Brejetuba e Afonso Cláudio, in the
state of Espírito Santo. The Project also articulated the construction of a warehouse and
a processing unit with a capacity of 300 kilos of honey per day, installed in Colatina,
Espírito Santo. From this new space, we could improve the quality and presentation of
the final product, in order to achieve enven the international market.
MODEL DEVELOPED BY INSTITUTO TERRA FOR THE RECOVERY AND
MAINTENANCE OF FOREST PROTECTION AREAS IN RURAL PROPERTIES
belonging to Brazilian suppliers of illycaffè, it was presented at the seminar "Creating
Value from Knowledge and Sustainability - 20th Prize Ernesto Illy Coffee Quality for
Espresso" , a realization of the University Café Brazil. Since 2008 Instituto Terra has
developed an environmental project in partnership with illycaffè, which contemplates
rural properties of coffee suppliers of the company in Brazil. These properties
participate in the pilot project, expected to be completed in 2012. In its final objective,
the project aims to facilitate the establishment and / or maintenance of Permanent
Protection Areas (APP) and legal reserves within these farms. Moreover, with the
encouragement of the adoption of agro-ecological practices of production, it aims to
enable the Brazilian grain used to produce the famous "espresso" from illy, in future
harvests, to bear the seal of a product that respects the environment.
THE PARTNERSHIP WITH EMBRAPA AGROBIOLOGY TO EXCHANGE
EXPERIENCES WAS SIGNED aiming improvement of technologies for recovery of
degraded areas of the Atlantic Forest, mainly in the seedling production of species that
have greater power to fix nitrogen, in order to expedite the restoration process.
SIGNED the partnership between INSTITUTO TERRA AND THE PUBLIC
PROSECUTOR’S OFFICE, through the Attorney General's Office in the City of
Governador Valadares, so that the resources in the Terms of Adjustment of Conduct
(TACs) are targeted for restoration actions of degraded ecosystem in the 116
municipalities served by the PRM unit of Governador Valadares. The resources are
directed to actions such as protection of springs and recovery of riparian areas on public
properties or nonprofit entities. During the year of 2011, the resources of four TACs
totaled the amount of R$ 160,700.00.
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THE MINISTRY STATE OF JUSTICE GIVES INSTITUTO TERRA THE TITLE OF
FEDERAL PUBLIC UTILITY (UPF) - as published in the Official Gazette of the
Union of May 2, 2011. It is recognition of the services rendered to the Union civil
association in their areas of expertise - environmental education, ecosystem restoration,
applied research and promotion of sustainable rural development. The title, which
proves the seriousness of the actions of Instituto Terra is currently a prerequisite
required by the public benefit and financial lenders or material resources to Third Sector
entities.
AGREEMENT WITH THE GOVERNMENT OF ESPÍRITO SANTO, BY THE
SECRETARY OF STATE FOR JUSTICE SIGNED for the preparation of the project
for deployment of a native plant nursery at the Atlantic Agricultural Penitentiary of the
state of ESPÍRTO SANTO. Thus, inmates in compliance with internal penalty in a
semi-open regime will work in the production of Atlantic Forest native seedlings, aimed
for reforestation actions in the state. Also participating in this initiative are the Ministry
of Agriculture, Food Supply, Fisheries and Aquaculture (Seag), Fibria and Incaper. In
its final goal, the project Mudas Nativas do Governo Capixaba (Native Seedling of the
Capixaba Government) intends to promote the social reintegration of inmates in the
prison system through working activities. Besides the design of the nursery, it is
Instituto Terra’s responsibility to provide the seedling production technology.
TERMINATED THE PREPARATION OF ENVIRONMENTAL ADAPTING PLANS
FOR 240 SMALL RURAL PROPERTIES AT THE DOCE RIVER VALLEY, aiming
to ensure better productivity rates associated with the conservation of the ecosystems.
The initiative is the result of a partnership between Instituto Terra and the Bank of
Brazil Foundation within the project Environmental Adaptation of Properties,
established in December 2010. In all, 120 properties were included in eastern part of
Minas Gerais (Conselheiro Pena and Aimorés) and another 120 in Colatina
(municipality in the state of Espírito Santo). This physical-environmental zoning study
is allowing the development of a model of environmental adaptation, associated with
the productive activity developed, which could serve as a basis for other properties in
the area. Through this multiplier effect, the goal is to reach a land area of 1,428,800
hectares, involving an estimated population of 380,656 inhabitants and 22,368 farms. In
the city of Colatina, Instituto Terra has the support of several partners in the
mobilization and identification of the owners - Incaper, Secretary of Agriculture in the
Municipality of Colatina, the local branch of the Bank of Brazil, the Superintendence of
the Bank of Brazil in Espírito Santo and the Farmer’s Association of the Córrego São
João Pequeno. In Conselheiro Pena, the partners are Brazil's Superintendence of the
Bank of Brazil in Conselheiro Pena, the local branch of the Bank of Brazil, CIAAT Information Center and Technical Services of Governador Valadares, Minas Gerais.
ONE MORE IMPORTANT STEP FOR THE PROTECTION AND RECOVERY OF
THE ECOLOGICAL RESERVE FOREST OF ITAPINA, in Colatina-ES, with the
construction of a fence and firebreaks around the perimeter of 5.000 running meters –
involving all municipal conservation unit of the Atlantic Forest biome. Also completed
was the replanting of native plants in over 20 hectares of the reserve, and performed
maintenance on another 50 hectares area. All these results are due to a partnership
between Instituto Terra, the Municipality of Colatina and the Colatinense
Environmental Services and Sanitation – Sanear. Focus of several forest restoration
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projects developed by Instituto Terra, the Reserve of Itapina up until now had only
fractions of fences in poor condition around its area, no longer supporting the external
agents of degradation. Even after the conclusion of the planting in 20 hectares, the 105
hectares of the Reserve continue receiving the cultivation necessary for their full
development, and considering that the planting and replanting performed to date are in
different stages of development, with diverse vegetative growth.
PRESENTED AT THE INTERNATIONAL CONFERENCE OF ONU-ÁGUA (UNOWATER), the actions implemented by Instituto Terra for the recovery of the springs in
the Doce River Valley region. Participants included representatives of UNO-Water, the
experts of the “Global Sustainability Panel" from the UN and institutions from 26
countries in Latin America and the Caribbean with "cases" of success on the issue. The
recovery of the springs work integrates the "Olhos D’Água" Program from Instituto
Terra, which already accounts for the protection of more than 250 springs in the region
of the middle Doce River. The case became part of a compendium of the 70 best
practices for recovery and conservation of water resources, and entered in a database
and online publication of the UN-Water.
COMPLETE ONE MORE STEP OF THE PROJECT "RECOVERING SPRINGS,
ENSURING SOURCES OF LIFE" developed with funds from the State Water
Resources Fund (Fundágua), in the watershed of the Santa Rosa River, in the
municipality of Baixo Guandu, in Espírito Santo. Monitoring studies of 27 already
fenced watersheds were carried out, for the identification of the level of potability of the
drinking water. The reports are delivered to producers, along with the pre-project of the
use of the land for each property serviced. The project is scheduled for completion in
December 2013 and has the partnership with the Institute of Agricultural and Forestry
Defense (IDAF), the Capixaba Institute of Research and Assistance and Rural
Extension (INCAPER), the Autonomous Service of Water and Wastewater (SAAE
BG), City Hall of Baixo Guandu, the Municipal Clerkship of the Environment
(SEMAM), the Watershed Committee of the Rio Guandu, and the Ecological Corridors
project of the State Institute for the Environment and Water Resources (IEMA-ES). The
benefited communities by the action are: Santa Rosa, Alto de Santa Rosa, Km 22, Valão
do Bugre, Gramínea, Patrimônio da Penha e Bananal.
CELEBRATED PARTNERSHIP WITH THE BANK OF BRAZIL to enlarge the
planting of species of the Atlantic Forest and the springs recovery in the Brazilian
territory from contributions made by Ourocard Origins, the first bank card made with
recycled plastic. Each card requested, the customer donates $ 5.00 to Instituto Terra,
and also adheres automatically, to the rounding service invoice to help with the planting
of 1 of the 400 trees needed to promote the recovery of 1 (one) spring. The card can also
be customized with an exclusive picture authored by the photographer Sebastião
Salgado, founder of the Instituto Terra, alongside Lelia Deluiz Wanick Salgado.
Altogether there are ten images available for the customer’s choice.
SELECTED THE EIGHTH CLASS FOR THE COURSE IN AGROENVIRONMENTAL of the Center for Research on Ecosystem Restoration (NERE) of
Instituto Terra. Ten more technical agricultural and environmental graduates will be
trained during the year 2012 on the recovery of the Atlantic Forest so they can
encourage the adoption of sustainable land use by small farmers established primarily in
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Doce River Valley. Students - called agents in Ecosystem Restoration - they receive
during a year of training, knowledge to disseminate a new management model for
environmental restoration in rural communities and properties in established areas of the
Atlantic Forest. The training is free and it works on boarding system. Launched in 2002,
today the course is held with the support of the National Steel Company (CSN) and
formed 69 ecosystem restoration agents. The last survey, conducted in 2011 showed
that 82% were employed in their field of training.
THE REFORESTATION WORK OF DEGRADED AREA OF THE ATALNTIC
FOREST conducted at the PRNP Bulcão Farm, in Aimorés (MG), assured Instituto
Terra the achievement of the II SUSTAINABILITY WERNECK HUGO & THE LOVE
OF NATURE AWARD in the category Flora. The "Oscars of Ecology" as the award is
named, is an initiative of the Ecological Group, with the institutional participation of the
State of Minas, the partnership of FIEMG, the technical supervision of the Dom Cabral
Foundation, the legitimacy of the Hugo Werneck Nature Protection Centre and the
support of the Association of Environmental Defense of Minas Gerais.
INSTITUTO TERRA RECEIVES THE TITLE OF PUBLIC UTILITY IN THE STATE
OF ESPÍRITO SANTO, according to the Law 9.674, sanctioned by the State
Government and enacted by the capixaba Legislature Power. The law project indicating
the institution as public utility was an initiative of the state representative Dary Pagung,
substantiated by the strong performance of the Instituto Terra in Espírito Santo, through
the numerous projects of environmental education, ecosystem restoration, applied
research and promotion of sustainable rural development that develops in the capixabas
municipalities, especially in the Rio Doce region. The Instituto Terra also holds the
titles of Public Utility for the municipality of Aimorés, for the State of Minas Gerais
and for the Federal Government, proving the seriousness of its actions and paving a path
of acting transparently and with strong support from governments and entities of the
public sphere.
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Institutional Representation
Instituto Terra encourages and promotes the exchange of experiences and dialogue with
other NGOs, governments, environmental industries, research centers and forest
institutes. In this sense, it participates in the following initiatives:
CBH - Doce River - Participates since March 2005 and in April 2009 it took over as a
full member and one of three elected representatives of the State of Minas Gerais to
represent the area of Teaching and Research at the Federal University of Viçosa and
Univale. It is a member of the Institutional Technical and Legal Board and the
Technical Framework of Water Resources Plan Board.
CBH - Manhuaçu River Water - Participates since its creation in September 2005 as a
full member as the representative of civil society.
CBH – Guandu River - Participates since its creation in August 2008 as deputy, being
the representative of civil society. Instituto Terra, in spite having a headquartes in
Minas Gerais, was elected for its outstanding work in the Doce River Basin.
Municipal Council of Environment of Aimorés – It is an effective member of the
Municipal Council of Environment of Aimorés, which is a collegial body responsible
for advising the Public Hall about issues concerning the protection, conservation and
improvement of the environment.
River Guandu Consortium – Consortium was formed by the municipalities that make
up the Guandu River Basin (Afonso Claudio, Baixo Guandu, Brejetuba and Larnaja da
Terra) as well as the representatives from IEMA, FUNASA ESCELA (EDP) and
CESAN. Institute Terra joined the consortium in 2005 at the invitation of other
members. From March 2008 to April 2009, Institute Terra was the interim president.
COPA - Joint Committee of Conselheiro Pena - Instituto Terra acts as a
representative of a nongovernmental organization formed for the protection,
conservation and improvement of the environment. It is one of 53 joint committees
created by the Government of Minas Gerais in order to tune the state environmental
policy with international trends in environmental management. The Commission, which
is subordinate to the State System Environment - SISEMA - is also composed of
representatives of the Government and civil society.
National Pact for the Restoration of the Atlantic Forest - Instituto Terra is one of the
signatories NGO of the pact, which also gathers governments, companies and research
institutions from all over Brazil and aims at the implementation of forest recovery
projects in a large scale to recover, by 2050, 15 million hectares of affected forest areas
in the country.
Biosphere Reserve – Instituto Terra was the first Advanced Post of the Biosphere
Reserve of the Atlantic Forest in Minas Gerais. This "accreditation" is granted the
institutions that develop steadily and measurably significant actions in the three basic
functions of the Biosphere Reserves: conservation, knowledge and sustainable
development, as defined by UNESCO MAB Program.
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Awards and Distinctions
Since its founding, Instituto Terra has received support and recognition of institutions
and governments for the work being done in favor of the recovery and conservation of
the Atlantic Forest in the Doce River Valley, as well as to the sustainable development
of the communities involved through environmental education. Check out some of the
awards and titles received over the past few years:
1998
Private Reserve of Natural Heritage
The Government of Minas Gerais, by the Ordinance of IEF / MG No. 081, promulgated
on October 7, 1998, gives the Bulcão Farm the title of PNHR - Private Natural Heritage
Reserve. The title keeps its uniqueness by being the first PNHR created in a degraded
area, with the commitment of being recovered.
1999
Title of Municipal Public Utility – Aimorés/MG
On December 17, 1999, Instituto Terra has been declared a public utility by the City of
Aimorés by Law No. 1.613/99.
2005
Title of State Public Utility – MG
By Law No. 15,525, of June 9, 2005, the Government of Minas Gerais declared
Instituto Terra as a State Public Utility Authority.
4th Furnas Award - Blue Gold
Instituto Terra conquered the 4th Furnas Award - Blue Gold, with the 3rd place in the
Community Category, the "Project for Education and Recovery of the Atlantic Forest in
the Doce River Valley.
2006
Alcan Award for Sustainable Development
Created in association with the International Business Leaders Forum, the Alcan Award
identifies and rewards nonprofit non-governmental organizations and civil society, for
their contribution to the economic, environmental and / or social development. Instituto
Terra was a finalist in 2006, being awarded a scholarship from the Post Graduate
Certificate in Cross Sector Partnership, a program of post-graduate certificate from the
University of Cambridge.
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2007
Diploma of Legislative Merit – MG
The Legislature Assembly of the State of Minas Gerais grants Instituto Terra the
diploma of Order of Merit Legislature of the State of Minas Gerais, by the relevant
services, particularly for environmental restoration of the Doce River Valley.
Meritorious Military Police Contributor – MG
The Military Police of Minas Gerais grants Instituto Terra the title of Meritorious
Contributor, for the services rendered to the Corporation.
2008
13th Ford Environmental Conservation Award
Instituto Terra won the 13th edition of the Ford Motor Company Environmental
Conservation Prize, awarded by Ford and Conservation International, in the category
Science and Training of Human Resources, for the project of the "Environmental
Restoration and Sustainable Rural Development Advanced Center".
7th Furnas Award – Blue Gold
In the 7th edition of the Furnas Awards - Blue Gold, Instituto Terra was awarded in the
Community category, with the study of water monitoring in the PNHR - Bulcão Farm,
which proved that the restoration of the vegetation allowed to recover the amount and
quality of water in streams of the Bulcão Farm, becoming an example of revitalization
of water resources.
2009
Advanced Post of the Biosphere Reserve
Instituto Terra receives the approval of the Bureau of the Biosphere Reserve of the
Atlantic to act as an Advanced Post of the RBMA. Advanced Posts are centers for the
dissemination of concepts and projects of the Biosphere Reserve in order to preserve the
Atlantic Forest biome. Instituto Terra was the first protected area to receive this title in
Minas Gerais.
2010
Sustainable Ideas
The PNHR Bulcão Farm becomes part of the "Sustainable Bank of Ideas" of the book
"Atlantic Forest - the Brazilian National Heritage", edited by the Ministry of
Environment.
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2011
Title of Federal Public Utility
Instituto Terra received from the State Ministry for Justice under the Federal Public
Utility (UPF), as published in the Official Gazette of May 2, 2011. It is a recognition of
the services rendered to the Civil Union association in their areas of expertise environmental education, ecosystem restoration, applied research and promotion of
sustainable rural development.
Title of State Public Utility - ES
Instituto Terra received the title of Public Utilities in the State of Espírito Santo, in
accordance with Law 9674, enacted by the State Government and enacted by the
capixaba Legislature. The degree was awarded by a strong performance considering the
presence of Instituto Terra and the state of Espírito Santo, through the numerous
projects developed in counties bordering the state of Espírito Santo by the Doce River.
Best Practices of UN- Water
The Water Eyes Program recovery and protection of springs of the Instituto Terra
becomes part of the 70 best practices running in the world for the recovery and
conservation of water resources listed by the UN-Water.
Hugo Werneck Award
The work of reforestation of degraded area of the Atlantic Forest conducted at PNHR
Bulcão Farm in Aimorés (MG), assured Instituto Terra to conquer the Hugo Werneck
Sustainability & Love to Nature Award in the Flora category. The "Oscars of Ecology"
as the award is named, is an initiative of the Ecological Group, through the
Environmental Magazine, with the support from the Government of Minas Gerais,
FIEMG, Dom Cabral Foundation, Hugo Werneck Centre for Nature Protection and
Environmental Defense Mineira Association.
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Corporate Governance
Organizational Design
In FIGURE 1 below is presented the organization chart of the Instituto Terra up to the
tactical level.
FIGURA 1 Desenho organizacional do Instituto Terra
Instituto Terra had in 2011 about 90 internal employees. This number varies according
to the specifications of the projects underway, specially the ones related to the
ecosystem restoration and plant productions.
Below, we present the mission, vision, values, goals, management model and the
actuation field of Instituto Terra.
Mission
Encourage sustainable development through the recovery and conservation of forests,
environmental education and the proper use of natural resources.
Vision
To become a national benchmark in:
- Ecosystem restoration of degraded areas of the Atlantic Forest in the Doce River
Valley;
- Production of native Atlantic Forest seedlings;
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- Environmntal eduction for children and young people;
- Management of ONG’s.
Our values
To achieve our mission, we work with the following values:
• Our work can contribute greatly to the improvement of living conditions of living
beings.
• The respect of ethical and moral precepts should be above any personal interest or
advantage;
• Transparency should be the keynote of all our actions;
• Our partners are entitled to solutions containing the best available technical and
managerial knowledge, the lowest price consistent with good execution of the activities
and the survival of our institution;
• We seek continuous improvement of technical and managerial knowledge, as well as
its formalization, in order to improve our internal processes and to transmit it to other
organizations;
• Cultivate an environment where collaborative work prevails and the confrontation of
ideas (respect of opinions), encouraging creativity and initiative and;
• Our model of career plan is based on performance criteria, seniority and knowledge.
Fields of activity
Our field of activity is geographically restricted to the Rio Doce Valley, which stretches
between the states of Minas Gerais and Espirito Santo, through 230 cities - being 28 in
the state of Espirito Santo and 202 the state of Minas Gerais. It has an area of 82,646
km² (equivalent to the area of Portugal).
Our areas of expertise (core social business) are:
• Ecosystem Restauration;
• Production of Seedling from the Atlantic Forest;
• Environmental Extension;
• Environmental Education and;
• Applied Scientific Research.
Objectives
Our goals are divided according to their temporal, assuming two perspectives:
permanent (goals to be pursued continuously and without interruption in the pursuit of
achievement) and situational (for reasons due to shifts in ambience, resulting from new
conjunctures of internal or external factors.
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The tool used for the establishment and monitoring of the goals is the Balanced
Scorecard, which allows a clear and articulated vision of all the works of Instituto
Terra.
Distributed in 5 prospects for action 16 strategic objectives were established (map cells)
- sometimes linked, highlighting the integration notion present in the management of the
Institute Terra- which were associated with 29 performance indicators.
Strategic objectives
Our strategic objectives are divided according to their temporality, taking two
perspectives: permanent (purpose to be pursued continuously and uninterruptedly in
search of outputs) and situational (for tax purposes in the ambience changes as a result
of new situations of internal or external factors).
The tool used for the establishment and monitoring of goals is the Balanced Scorecard,
which allows a clear and articulated vision to all the work of Instituto Terra.
Distributed in 5 prospects for action 16 strategic objectives were established (map cells)
- sometimes linked, highlighting the integration notion present in the management of the
Institute Terra- which were associated with 55 performance indicators.
Management model
We adopted a management model based on our values allowing us to achieve our goals,
and therefore our vision and, finally, our institutional mission.
Instituto Terra has its managing system oriented by results. Protocols operating system
(standardization) guide their policies. The Balanced Scorecard is a tool used for the
establishment and monitoring of their strategic objectives. And the Project Office1
(designed according to the best practices recommended by the Project Management
Institute) supports their actions (planning, execution and projects control), for the Zero
Based Budgeting2, associated with rolling forecasting technique3, gives guidance.
The corporate risk management, which is being implemented in 2012, monitors the
identified risks of not achieving the strategic objectives outlined in the Balanced
Scorecard and the case of not providing the "deliverables" of the project in accordance
with its scope, cost, scheduling etc.
For the achievement of its institutional mission, the Instituto Terra has partnerships with
companies, NGOs and national and foreign governments. The partnerships are
established through agreements marked by technical and financial cooperation.
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Project Management
Instituto Terra has an Office Project which consists of two full-time employees. Their
responsibilities include: development and implementation of project management
methodology, support to the methodology and the projects management tool, definition
and monitoring of performance indicators, project audit and portfolio management.
The project management methodology implemented at Instituto Terra was conceived
from the perspective of the Deming Cycle (plan, do, check and act) and in line with the
Project Management Institute.
All projects are developed under the scope of the institution grantor. If the project is
approved, the start up documentation (plan) is done. Then it holds a "startup project
meeting" with everyone involved in the process, and its execution (do) is initiated.
Every month, the project assistant meets with the Project Managers in order to monitor
the project as to ensure its proper implementation. Then the outcome of the meeting is
discussed with the Executive Superintendent and the reports are forwarded to the Board
of Directors (check). Finally, based on the action plan set out in follow-up meetings, the
Project Managers continue the implementation of the ongoing projects (act). It is
noteworthy that after the closing of each project "meeting of learning" is held in order to
build a solid learning curve in project management.
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Audit of financial statements
Instituto Terra seeks to provide maximum transparency to the application of resources.
Accordingly, the financial statements are reviewed and certified by external auditors
since 2001 and a Supervisory Board since its founding.
The following are the financial statements and independent auditors' report.
INDEPENDENT AUDITORS’ REPORT ON FINANCIAL STATEMENTS
To the Board of Directors and Managers
Instituto Terra
Aimorés - MG
We have examined the financial statements of Instituto Terra (“Entity”), which comprise the
balance sheet as of December 31, 2011 and the respective income statement, changes in net
equity and cash flow for the period ending on the mentioned date, as well as the summary of the
main accounting practices and other explanatory notes.
Administrative responsibility for the financial statements
The management of the Entity is responsible for the elaboration of appropriate financial
statements presentation, following accounting practices adopted in Brazil, and for internal
controls defined as necessary for financial statements relevant-distortion-free elaboration, no
matter whether it is caused by fraud or mistake.
Independent auditors’ responsibility
Our responsibility is to express an opinion on these financial statements, based on our audit,
which has been conducted according to international and Brazilian audit rules. Such rules imply
ethical requirements to be fulfilled by the auditors and audit planning and execution aiming at
reasonable guaratee that the financial statements are relevant-distortion-free.
Audit involves selected procedures execution to obtain evidence regarding the values and
disclosure of financial statements. The selected procedures depend on the auditor’s opinion,
which include the evaluation of relevant-distortion risk in the financial statements, no matter
whether it is caused by fraud or mistake. In the process of risk evaluation, the auditor considers
internal controls which are relevant for the elaboration and appropriate presentation of the Entity’s
financial statements, in order to decide which audit procedures are appropriate for each
circumstance, but not to express an opinion on the efficacy of such Entity’s internal controls. Audit
also includes the evaluation of the suitability of the accounting practices which have been used
and the reasonability of the management’s accounting estimates, as well as the evaluation of the
financial statements presentation as a whole.
We believe the audit evidence which has been attained is sufficient and appropriate to
substantiate our opinion.
Opinion
In our opinion, in all relevant aspects, the above mentioned financial statements appropriately
present Instituto Terra’s financial and equity position as of December 31, 2011, the development
of its operations and its cash flows for the period ending at that date, following the accounting
practices adopted in Brazil.
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Other matters
Audit of values corresponding to previous period.
Values corresponding to the period ended on December 31, 2010 used for comparison between
periods were previously audited by us, according to current audit rules on the report issue date,
May 27, 2011, and it did not undergo any modification.
Vitória, March 16, 2012.
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BALANCE SHEET FOR THE ENDED PERIODS
(In thousands of Reais)
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STATEMENT OF SURPLUS (DEFICIT) FOR THE ENDED PERIODS
(In thousands of Reais)
19
STATEMENT OF CHANGES INEQUITY
(In thousands of Reais)
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Team
Board of Directors
Lélia Deluiz Wanick Salgado | Co-founder and President
Artistic director of photography, partner and director of photographic agency AMAZON images - Paris,
France. Architect graduated from École Supériure Nationale des Beaux-Arts, Paris, and licensed and
Mastered in Urban Planning from the Université Paris VIII.
Sebastião Salgado | Co-founder and Vice-president
Photographer and photo agency partner AMAZON images - Paris, France. Economist graduated from
the Federal University of Espirito Santo, with postgraduate studies at the University of São Paulo and the
University of Paris.
Tomaz Benedito de Souza | General Secretary
Official of the Registry of Deeds and Documents and of the Corporate Officials Office of Aimorés - Minas
Gerais. Bachelor in Law, specialized in Civil and Commercial Association and President of the
Commercial Association and the Security Council of Aimorés.
Antonio Carlos Simas | Sustainable Business Development Director
Chemical engineer with an MBA from COPPEAD Federal University of Rio de Janeiro. Attended the
Advanced Management Program at INSEAD / European Institute of Business Administration, in
Fontainebleau, France. He was a consultant in the Principal Invest Officer of the Department of Latin
America and the Caribbean at the International Finance Corporation, World Bank.
Carlos Alberto Lessa | Administrative Director
Graduated in Economics from the Federal University of Espirito Santo-UFES, post-graduate from the
Federal University of Viçosa. Executive Superintendent of CREDISOL, in Vitória, Chairman of the Board
of Directors of the Bank of the State of Espirito Santo SA, the Group's Executive Coordinator for
Economic Recovery of Espirito Santo - GERES and representative of the Planning Department of the
Presidency in collegial advice.
José Armando de Figueiredo Campos | Director of Institutional Relations
Mining Engineer from the School of Mines of Ouro Preto (EMOP / UFOP), Executive MBA from
Fundação Dom Cabral / INSEAD. Chairman of the Board of Directors of ArcelorMittal Brazil SA,
member of the Board of Directors of Fibria SA, Network Gazeta, and the Business Advisory Board of the
Holy Spirit Movement in Action was a member of the Board of Directors of the Bank of the State of
Espirito Santo SA BANESTES , Vice-President and later CEO of Cia Siderúrgica Tubarão - CST,
President of the Brazilian Steel Institute - IBS, the Brazilian Association of Metallurgy, Mining and
Materials, Institute of Latin American Iron and Steel - ILAFA and the Brazilian Business Council
Sustainable Development - CEBDS.
Paulo Henrique Wanick Mattos | Financial Director
Administrator with a postgraduate degree in Corporate Finance from Getúlio Vargas Foundation, and an
MBA from the College of Business of Ohio University. He was a senior manager of audit and business
consulting on mergers and acquisitions in Brazil and Latin America at Pricewaterhouse Coopers. He is
currently a General Manager of ArcelorMittal Tubarão Controller.
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Martha Tristão | Director of Education
Professor Associated with the Federal University of Espírito Santo. Licensed in Biological Sciences, a
Masters in Education from the Federal University of Espírito Santo, and a Ph.D. in Education from the
University of São Paulo, with postdoctoral in Environmental Education at the University of Regina, in
Saskatchewan, Canada.
Mauro Leite Teixeira | Director of Infrastructure and Heritage
Graduated in Civil Engineering, Business Administration and History, and post-graduate with
specialization in language: the language and literature from Saberes College. He worked as an engineer
of National Highways Department (DNER). Was executive superintendent and director of the Center for
Education and Environmental Restoration (Cera), from Instituto Terra in Aimorés, MG. Acts as project
manager for the Department of Public Works of the City of Vitória.
Renato Moraes de Jesus | Director of Environment
Forest Engineer, Ph.D. in Forest Ecology from the University of Campinas. He was a General Manager
of Biodiversity at Vale.
Robson de Almeida Melo e Silva | Director of Communications
Mechanical Engineer from the Institute of Technology of Governador Valadares in Minas Gerais, an
MBA in Responsible Management for Sustainability by Dom Cabral Foundation. Advisor at the
Reference Center for Responsible Management of Sustainability at Dom Cabral Foundation, of
Movement in Corporate Espírito Santo in Action and Coordinator of the Thematic Social Inclusion
Advisor Committee of COMAM - Environmental City Council of Fundão-ES, and Communications and
Sustainability Director of the Aplysia Institute.
Advisory Council
Célio Murilo de Carvalho Vale
Celso Luiz Marques
Clayton Ferreira Lino
Fernando Moraes
Francisco Buarque de Holanda
Gabriel Zellmeister
Gustavo Alberto Bouchardet da Fonseca
João Pedro Stédile
José Mindlin (in memorian)
José Roberto Soares Scolforo
Maritta Kock-Weser
Roberto Messias Franco
Russel Mittermeier
Washington Olivetto
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Audit Committee
Donaldo Alfredo Caser
Name Chequer
Reinaldo Schlosser
Executive Superintendent
Adonai José Lacruz
Administrator and Master in Business Economics with a concentration in Corporate Finance. Certified
as a Project Management Professional (PMI) by the Project Management Institute (PMI). Professor of
Economics, Finance and Project Management.
23
Partners of 2011
In Brazil
Alcoólicos Anônimos de Aimorés – MG
Alcure, Pereira & Puppim Advogados (pro bono)
Banco do Brasil
Banco Nacional de Desenvolvimento Econômico e Social / Iniciativa BNDES Mata Atlântica
CESAN – Companhia Espírito Santense de Saneamento
Conservação Internacional – Brasil
Clin – Farmácia de Manipulação (convênio para funcionários do Instituto Terra)
Conselho Federal de Direitos Difusos / Ministério da Justiça
Doadores diversos – clientes OuroCard Banco do Brasil que aderiram ao “arredonde”
Drogaria Fonseca (convênio para funcionários do Instituto Terra)
Energest – ES
Farmácia Santa Lucia (convênio para funcionários do Instituto Terra)
FHIDRO / Instituto de Gestão de Águas – MG
FNMA / Ministério do Meio Ambiente
FUNDÁGUA / Instituto Estadual de Meio Ambiente – ES
Fundação Banco do Brasil
Fundição Mundial
Instituto Estadual de Florestas – MG
Instituto Estadual de Meio Ambiente – ES
Polícia Militar Ambiental em Aimorés – MG
Prefeitura Municipal de Aimorés – MG
Prefeitura Municipal de Baixo Guandu – ES
Prefeitura Municipal de Colatina – ES
Procuradoria Geral do Estado do Espírito Santo
Ministério Público Federal – Procuradoria de Governador Valadares
Renato Moritz Cavalcanti
Rocio Fotografias (serviço de fotografia pro bono)
Samarco Mineração
São Bernardo Saúde (convênio para funcionários do Instituto Terra)
Secretaria de Justiça do Estado do Espírito Santo
Serviço Colatinense de Meio Ambiente e Saneamento Ambiental – Colatina / ES
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Sindicato das Indústrias de Olaria – região centro-norte do ES
Universidade Presidente Antônio Carlos de Aimorés – MG
Usina Hidrelétrica de Aimorés
Zopone Engenharia e Comércio
In other countries
Agencia Asturiana de Cooperación al Desarrolo – Espanha
Amazonas Images – França
Doadores diversos através do site groundspring – Estados Unidos
Illy Caffè – Itália
Regione Emilia-Romagna – Itália
Swartz Foundation – Estados Unidos
Taschen America LLC – Estados Unidos
Tides Foundation – Estados Unidos
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Credits
Texts
Maria Helena Fabriz
MHF Comunicação
Revison
Bruno Henrique Castro de Sousa
Translation
Patrícia V. de Oliveira