To whomever it may concern

I am glad to confirm that Nogueira, Elias, Laskowski e Matias Advogados keeps its support to the Ten Principles United Nations Global Compact on Human Rights, Labor, Environment and Anti-Corruption.

In this annual report about progress we present our actions to continuously improve integration to the Global Compact and its principles, to the business strategy, culture, working environment, and daily operations of our Law Firm.

We also commit to disseminate Global Compact Principles and share the information about the activities of NELM Sustentável Project (http://www.nelmadvogados.com/sustentavel.asp) with our stakeholders, through our website and monthly and extraordinary newsletters as explained in this report.

Yours sincerely,

Eduardo Felipe Pérez Matias
Partner

Considering the principles in many international agreements, like Universal Declaration of Human Rights and UN’s International Covenant on Economic, Social and Cultural Rights etc., we are giving our best efforts to everybody in the Firm be respected, each with it’s own characteristics and peculiarities, without any kind of discrimination whether because of the age, race, sex, religion, social class or any other individual choice.
Furthermore, we aim to spread these principles among our partners and customers.
In this report, we have included all our projects related to Social Responsibility.

a) Blood Donation Quaterly Program: at the same day chosen by the society to represent a health awareness action, our office has maintained and updated the Blood Donation quaterly Program.
The program consists of the regimentation of volunteers among the employees of the office (not only among their employees, but all collaborators) to conduct blood donation in dates at the same time promote awareness and warn society about the importance of health.
Blood donations are held at the World Health Day, the National Day of Health and the National Blood Donation Week, coinciding with the interval of a quarter between each date, which is also recommended for the period interval between blood donations.
Blood donations were made by the Blood Bank of the Hospital Sírio Libanês and the Santa Casa de Misericórdia, both in São Paulo.
On the day of donation, the donor is relieved of his activities, and all customers and collaborator are advised of the special date of donation, in order to encourage them to participate in the initiative.

b) Solidarity Christmas and Easter: In some special dates, NELM staff volunteer to prepare gifts to donate to underprivileged people. On Christmas, gifts, clothes and itens of personal higyene were collected and given to kids who live in Casa Transitória Taiguara, located in São Paulo/SP. On Easter, a team of NELM volunteers went to Instituto de Cegos Padre Chico (Father Chico Institute for the Blind) to give away easter eggs, as a form of better knowing the institutes workand to generate a greater interaction between the institute´s studentes and society.

c) Donation of clothes: Also on voluntary basis, in partnership with The Julita Foundation, our law firm promotes constant collection of used clothing and accessories, which are intended for permanent bazaar Julita Foundation, which resells the items uses the profits to maintaining their social work.
The Julita Foundation was founded in 1950 and serves people in need, of all ages, in the Jardim São Luiz region, in the southern region of São Paulo. The campaign is held on a permanent basis, keeping a collection box on the 8th floor of the office.

d) Tax coupons boxes of Santa Casa de São Paulo: Continuing the work that has been done, the firm mantains boxes to collect tax coupons which are later used by the Santa Casa de São Paulo, for utilization of tax credit.
This project of the office was subsequently disseminated to all companies that are headquartered in the same building, including relying on a larger box for collection at the front desk of the building.

e) Pro bono: The firm is still filiated and providing services to the Instituto Pro Bono to promote greater access to justice for the population in need.
Currently, the Firm works pro bono for institutions projects (counseling, advocacy, negotiations) which objectives are relevant and that look for Instituto Pro Bono to resolve their legal problems that prevent or impact in social works.

f) Think Tank: The firm maintains its Think Tank Project, as an extraordinary activity, in which staff members and invited guests make an effort to produce texts, actions, bills, legal campaigns in issues of relevance to Sustainability. NELM´s Think Tank is composed by a wide range of people, that are not necesseraly NELM employees, to create legal tools that stimulate sustaintability. As of now, the Think Tank is working in three independent projects. The first project pursues the inclusion of sustaintability in the Curriculum of schools. The second project seeks to stimulate the hiring of people that live near the workplace, via tax deductions. The third project seeks to extend the benefit of half price admissions already granted to studentes and seniors citizents, for concerts, movies, theaters and sporting events to blood donors.

Considering the importance of respect for human rights, guide employees, partners and customers to adopt the observance of the principles as north for development activities, being the end of the relationship allowed for cases of disrespect or breach of such laws, since properly supported and that no solution in reasonable time. Otherwise, the incentive to participate in volunteer projects and donations integrates the routine of our office are made almost daily with the release of the shares in all media office. Internally, we are working on restructuring our Corporate Governance Policies and Management Processes, so that we can implement effectively, devices that enable us to measure the results achieved in our projects related to Social Responsibility.

Considering the policies and guidelines adopted by international agreements such as the ILO Declaration of Rights, as well as those adopted by the Brazilian Labor Law, is guaranteed to every employee those rights in hiring and performance of their duties.
For this reason, employees are assured of compensation proportional to the standard of living considered worthy and consistent with the society around, without discarding the reasonable limitation of working, pay on holidays, right to rest and leisure that enhance the quality of life of and each of their respective families.
The working conditions offered are safe, hygienic and well-being, with provision of healthcare and nutrition, besides respecting the right to Maternity Leave, paid or with adequate benefits, with special protection for mothers, for a reasonable period of time.
Moreover, in the spirit of adopting policies that value staff members, including the objective of granting them long-term financial security, the Firm counts on private pension plan for its lawyers, to which it contributes monthly, regardless of the contribution of the latter.
Add to the benefits, the opportunity for growth and development in the company according to the functions performed by each, with incentives to search for improvement and new learning, through policies of financial assistance.
Regarding child labor, it is also guaranteed to respect the minimum age for hiring, including trainees, and the obligation not to remain in position contributor.
Just as regarding the disrespect of Human Rights, the company has adopted a policy to pass on to customers and suppliers the need for observance of labor rights, failing in not applying corrective action in case of default, be the contract termination (the policy of sustaintable purchases of our firm which applies to our supliers, can be found in the anti-corrpution principle chapter bellow).

a) Home Office: Considering the trend of performing the work in an alternative office space, as well as various factors such as concern for the quality of life of the employee, the urban mobility and the need to reduce greenhouse gas emissions, we have implemented “home office” which is been adopted by staff members once a week with positive effects.

b) Also in order to improve work environment and life quality of its staff members, NELM created a “coffee room” where staff members can meet to chat and take a brake in their daily activities, improving integration between the teams. This living room is also used for celebrations and others occasions like birthdays, lawyer day, and the anniversary of the foundation of NELM.

c) HotLine: we created a hotline in order to allow our employees to express their sugestions, comments and complaints about the work environment anonymously and secretly, reinforcing our institutional policy of propitiating and adequate work environment.

d) Maintenance and improvement of NELMNET: A social network for exclusive use of employees, that consists in a fast system for professional information exchange, dissemination of current projects and actions in the context of NELM Sustentável Project, facilitating the interdisciplinary communications among teams and increasing commitment in employees.

e) Idea Contest: Using NELMNET, a quarterly Idea Contest was created, to allow employees to present projects on how to raise quality of life in the work environment and to make daily personal and professional routine more sustainable – awarding a prize to the best idea. In this period, we have had two editions of this Contest, that were won by ideas related to personal development and professional training, including workshops about relevant topics in the law world as well as open meetings in which lawyers can exchange experiencies about ongoing cases and debate new ideas to be applied.

There are still many implementations to be made to fill the gaps in labor relations. We are certain that the adoption of the "home office” already improved the quality of employees' lives.
Also permanent mechanisms that allowed us to collect employees' opinions more frequently, increased the transparency and legitimacy of our decisions.

We promote, not only for our colaborators but also for our clients and other people from the community and the building, the importance of natural resources and preservation of the environment for better use of nature.
Internally, we have adopted policies that seek to reduce, reuse and recycle our office supplies, ensuring that waste can be assimilated by ecological systems. Prioritized in our stationery materials using certified paper and adopt internal policies to encourage our colaborators to practice actions that reduce the consumption of paper and plastic products, such as disposable cups, as well as prioritize the conscious use of water and of electricity.
In addition, NELM joined the Coalizão Brasil Clima, Florestas e Agricultura (Coalition Brazil Climate, Forest and Agriculture), reinforcing its commitment to sustainable development underwritten in the NELM Sustentável Project.
The objective of the Coalizão, a multissectorial movement that gathers companies, civil society organisations and individuals, is to develop a new economy, with sustainable and competitive base, that allows achieving concrete improvements to Brazilian climate, forest and agriculture programme, as well as to generate business opportunities for the country, believing that the dialogue among the productive sectors, nongovernmental organizations, govern and Academy represents a big progress to the technological, sustainable and low carbon development.
Among the commitments undertaken by the companies that join the Coalition, are, for example, demanding, in corporate purchases of native forest products, proof that the wood is lawfully controlled or certified.
Also in this period, NELM has joined “Carta Aberta ao Brasil sobre a Mudança do Clima – 2015”, an open letter about climate change, released on August 13, 2015, by representatives of corporations and organizations linked to Low Carbon Economy, members of the “Fórum Clima – Ação Empresarial sobre Mudanças Climáticas” coordinated by Ethos Institute. This consists of a document handed to the Federal Government about actions against greenhouse gases that includes proposals and sugestions to be incorporated to the United Nations Convention on Climate Change (COP 21), that will take place in december, in Paris.

a) Management of water use: Given the exceptional water shortage found in São Paulo, we started a campaign involving not only our employees, but also the whole building, encouraging conscious consumption of water, with the replacement of faucets and flushing systems adding water flow control.
Regarding our firm, besides observing noticeable reduction in water consumption, we already replaced the flushing systems to a dual-flush system, and also approved the replacement of faucets for models equipped with timers and aerators, that are currently in process of purchase and implementation.

b) Selective collection: To combat problems caused by excessive waste production we maintained our selective collection program with the installation of selective collection bins (paper, metal, plastic and organic), distributed alongside the office.
This action is developed in partnership with the building administration, which already selectively collects that material. Reusable materials are sold and profits are reverted to the condominium staff.
Our concerns, however, goes beyond the waste produced in our everyday lives. For this reason, we are still collecting improperly disposed pollutant materials, such as electrical equipment, electronics and computer peripherals (keyboards, ink cartridge, cell phones and chargers, cables and wires, batteries cartridges for example) that are handed over to Lavra – Reverse Logistics (http://lavra.eco.br/), that, as explained in our previous report, attests our commitment to the environment.
As an innovative measure within this period, we highlight the radiographic exam collection and proper disposal program. Considering that the printing the exam results involves several toxic substances, our firm collects the exams and disposes them at “Hospital das Clínicas de São Paulo”, who conducts a proper recycling program.

c) Printing reduction: Following our efforts to reduce printing amongst our staff, in order to reduce waste generation and energy consumption we keep assessing data on paper consumption amongst our staff as an awareness campaign about excessive waste generation. During this period, we approved the installation of a second screen in the interns desks, what was already implemented for all lawyers. As a result of these policies, we ascertained continuous and noticeable decreases on printing, which is measured biannually. This project also educates staff to use scrap paper for printing internal documents and, two-sided printing for documents sent to clients.

d) Reduction in electricity consumption: During the last period we had presented a project to our staff in order to disseminate the importance of reducing the cost of energy in small actions of everyday life: leaving the lights on when leaving the room for a short period, turning off the light of the pantry and the bathrooms when not in use, opening the blinds to use natural light in the morning and the correct use of air conditioning.
We noticed, between August-2014 and June-2015 a 0.97% reduction, which is noticeable, since in the same period of the previous year, we noticed a reduction of 6.45%, thus manteining a pattern of reduction that com always be improved. This situation shows that the coherent use of air conditioning and repeated requests not to leave the lights on in unoccupied rooms did not achieve the desired economy, so all light bulbs were replaced by LED bulbs in our firm.

We recognize there are still gaps to be addressed regarding the policies to monitor and assess the performance of our environmental actions, that can not currently be measured in a concrete and effective way. For this reason, we are focusing on the restructuring of our Corporate Governance Policies and Management Processes, so that we can implement effectively, devices that enable us to measure the results achieved regarding our Policies for Environmental Preservation.

We make sure that none of the services rendered by us before the client is in favor of any act of corruption. Moreover, we always try to make sure that the products we use are the same oversight, as to its origin.
These principles are part of “Código de Ética da OAB – Ordem dos Advogados do Brasil”, professional association which this firm is linked to.
Besides, we are concerned with the adoption of these and other principles related to the sustainable development for our employees and partners, which is why it instituted a Sustainable Procurement Policy, as will be seen below."

a) Sustainable Purchasing Policy: With characteristic multiplier of Sustainability, NELM adopted a purchasing policy applicable to all items acquired and service providers who work directly for NELM.
The Sustainable Purchasing Policy was developed in accordance with the principles of the most reputed global organizations in Sustainability, guided by the principles adopted by Fairtrade Organization.
The Sustainable Purchasing Policy is divided in sessions: Principles; Internal ducts; Selection of Suppliers; Characteristics of the products; and Purchasing Process.
These as the values adopted in purchases to be made by NELM: Fair Trade, comprehending the continuity of relations with suppliers and the costs of products, Environmental Protection, Anti-Corruption, Child and Slave Labor Eradication, Fight against every kind of discrimination; Multiplication by subcontractors chain.

This project was recently implemented in our purchasing processes and the evaluation of the results will be done after a minimum period of six months of experimentation, even so it can evaluate any need for adjustments or changes