Sumário
Annual Report
2022 Sustainability
2022 Sustainability
- PT
- EN
Climate change is a worldwide concern and directly affects policies and activities of corporations in all countries. MRS recognizes the importance of its contribution in the search for a more sustainable energy transition and believes that its participation necessarily involves the reduction of greenhouse gas (GHG) emissions in the transport of customer goods, the mitigation and adaptation of impacts of climate change on its business and the transparency and commitment in sharing information with its stakeholders. At the same time, the railway sector understands that it is part of the solution for reducing GHG emissions in the national logistics sector, since a loaded train can emit up to three times less than the road sector and thus contribute to the transport of cargo in Brazil to be less emitter.
Reaffirming its search for the adoption of best practices, the Company is a signatory of the São Paulo Agreement. Evidencing its progress on the subject, in 2022 MRS had its score upgraded from D to C in the CDP (Carbon Disclosure Project) climate change agenda, an important tool used by investors, buyers and governments during the decision-making process, considering risk management information, opportunities and social and environmental impacts. And, for the first time, it published the inventory on the public platform of Brazilian GHG Program Protocol, controlled by FGVces, and received the Gold Seal award, for the complete data of scopes 1, 2 and 3 of emissions audited by an independent third party. This is the highest rating, proving the quality and reliability of its data. Data on GHG emissions are included in ESG targets for the leadership and, since 2022, an internal monitoring indicator is set to monthly measure the progress of absolute and specific emissions arising from diesel consumption by the rail fleet.
Total MRS emission in 2022 was 555.8 thousand tons in CO2eq for scope 1 (direct emissions), representing 5.1% increase compared to 2021, mainly motivated by the increase in the volume of cargo transported, which consequently caused more diesel to be consumed. Values were 58.3 billion TKU in 2022, 2.87% higher than in the previous period.
Absolute emissions for scope 2 (energy) amounted to 1508.3 thousand tons of CO2eq in 2022, compared to 2021 data, there was an improvement of about 63.2%, motivated by the decrease in the emission factor of the national system, mainly caused by the reduction in the use of coal-fired thermoelectric plants to generate energy for the domestic market.
Since 2021, MRS has quantified its scope 3 emissions (indirect emissions). In 2022, there was an increase in inventoried categories, which now include part of categories 1 (purchased goods and services), 2 (capital goods) and 4 (upstream transportation), in addition to categories 6 (air travel and employee accommodation ), category 5 (disposal of waste) and category 3 (analysis of the useful life of the diesel input), which had also been inventoried in the previous year. It should be noted that emissions were calculated retroactively to the base year of 2019. The results were 40.2% lower than the year 2021 and 1.5% lower than the base year of 2019. This result occurred because the company purchased fewer inputs such as sleepers and gravel, which directly impacts the calculation of emissions from the production of these materials.
Emission of Greenhouse Gases (GHG)
(In tons of CO2eq)
In addition to GHG emissions, MRS periodically monitors other atmospheric emissions, such as PM (particulate matter), NOx and SOx parameters, occurring in some maintenance workshops and in operations on the railway network. Historically, results are below the limits set forth in CONAMA Resolution No. 491/2018 and are periodically reported to the Company’s licensing environmental agency.
With a focus on improving the environmental impact of its operations and improving air quality in communities surrounding the railroad, MRS has a robust plan to expand the use of polymer sprinklers, used to reduce the wind dragging of particles during transport of cargo with low granulometry in open wagons. In 2022, the company installed a sprinkling plant in Pindamonhangaba (SP), focused on sprinkling transports of green petroleum coke and ore, both transported in open wagons. In addition, the Company already has a sprinkler plant in Barra Mansa (RJ) and its planning includes the implementation in three new locations – Jeceaba (MG), Sarzedo (MG) and Itaguaí (RJ). The total investment forecast for the implementation of these projects is around R$ 29 million, of which around R$ 4.8 million has already been spent in 2022. Atmospheric emissions resulting from cargo transport are periodically monitored with the support of specialized consultants,
MRS Environmental Management System unifies and controls data generated during monitoring, providing continuous analysis by the company’s analysts and specialists.
MRS uses the quantification of emissions in gCO2eq/TKU (ton per useful kilometer) as one of the efficiency indicators of its operations. In 2022, the Company recorded 9,52 gCO2eq, an increase of 2.2% compared to the previous year, driven mainly by the increase in the transport of less efficient flows, such as general cargo, impacting the efficiency of the operation.
Specific emissions
(gCO2eq/TKU*)
*TKU: Tons per useful kilometer, i.e., only the cargo weight multiplied by the distance transported.
Biogenic emissions
(tCO2eq)
MRS has a tool that effectively measures the sustainable gains of multimodal logistics (rail + road), pointing to the reduction in CO2 emissions of this model compared to road transport: rail transport can emit up to 3x less than trucks would emit to transport the same cargo volume. Access.
increasing train speed at key points of the railroad, without increasing energy consumption, using the train inertia for savings;
driving improvement by train drivers, with an efficient driving;
using more efficient locomotives, with diesel engines with lower emission and testing of hybrid locomotives;
increasing productivity of locomotives, improving asset turnover and HP per TB (Locomotive Power per Gross Ton) ratio;
reducing the time of locomotives running unnecessarily.
The following graph shows the emissions avoided by MRS through its fleet renewal and energy efficiency program, measured through the emissions practiced by the activity of diesel consumption by the locomotives.
In recent years, the initiatives that MRS has been carrying out to improve energy efficiency have allowed the Company to avoid more than 1.2 million tons of greenhouse gases (GHG) emissions, regarding the continuity of the fuel consumption rates of 2011. (Learn more here)
Avoided emissions
(tCO2e)
To deal with the consequences of climate change, MRS has a permanent management structure for the impacts of rainfall and drought on the railroads. Proactive, corrective and control actions are continuously performed along the entire rail network and surroundings.
Periods with high rainfalls, as occurred in early 2022, imposes numerous challenges to MRS in maintaining safety. To stay ahead of the risks and be increasingly better prepared, the Company is investing in providing the necessary equipment for the fast correction of any problems and has an agreement in force with Climatempo to monitor the entire rail network, with predictability of weather events in a short time span. To expand the scope of the initiative, it relies on some meteorological stations along the network.
Climate-related problems, such as heavy rainfall, flooding of lines or terminals, collapsed barriers, among others, can be directly reported to the Company through its own communication channels.
In 2022, with the support of a specialized consultancy, the corporate mapping of risks and opportunities arising from climate change in MRS business was completed, considering physical and transition risks, with measurement of criticality following the line of TCFD (Task Force on Climate-Related Financial Disclosures) framework. The work will have multi-year developments, especially regarding the deepening of climate scenarios for the most critical items and financial forecasts of the impacts for MRS.
During the dry period (April to October), MRS has a preventive plan to reduce vulnerable points to have the least possible impact during the rainy season (November to March).
In 2022, as a result of the Rain Plan, 86 meetings were held with the areas involved in the topic, 20 management alignment meetings, 984 yellow alerts were issued (traffic restriction) and 458 red alerts (traffic stoppage), with 314 occurrences of rain-related faults. All Drought Plan initiatives were increased in the period compared to 2021 and included 22mm/m2 of mowing and pruning activities, 8,000 kilometers of chemical weeding activities, cleaning of 1,534 manholes, 975,000 meters of gutter cleaning and 70,955 meters of trench openings. The heavy rains that hit the railway in January 2022 were unpredictable and above historical records. To remove the resulting interruptions, emergency efforts were made in areas with affected traffic. In addition, engineering works were also necessary for definitive solutions such as reclaiming, nailing the soil and installing equipment to monitor the affected areas in real time.
MRS energy consumption results mainly from the railway operation and from the units that support the development of the railway’s activities. The Company’s energy sources are represented by the consumption of diesel, a non-renewable fuel and the energy purchased.
To stay aligned with the commitment of reducing the impact of its activities on the environment, MRS opts for the acquisition of energy in the free market, equipment with lower consumption, and the leasing of solar farms.
In 2022, the total energy consumed by MRS was 28 million kWh of electricity. Of this total, approximately 86% was acquired through the incentivized free energy market, in which the sources of energy generation are renewable, derived from Small Hydro Power Plants, solar, wind and biomass. Thus, there was an increase of about 16% in the consumption of renewable energy when compared to 2021.
Shared Services Management monitors the amounts spent on energy, as well as any deviations and waste. The treatment of deviations has a very significant impact on the optimization of resources for MRS, and may even reduce transport pricing for our customers.
Total internal organization energy consumption
(in GJ)
The main challenge for MRS in advancing the climate agenda is directly related to the need for a more efficient energy matrix, consuming less diesel with increased cargo transportation. Fuel cost is one of the most relevant for the Company, a factor that, added to MRS’s commitment to a sustainable positive agenda, makes the topic extremely relevant.
About 99% of MRS scope 1 and 2 emissions derives from diesel combustion in locomotives during rail cargo transport. Due to this, the company makes strong efforts to renew its rail fleet, with significant gains in efficiency whenever a replacement is made. For the medium and long term, MRS is studying the inclusion of hybrid machines (diesel and batteries) that are less dependent on diesel, with lower emissions.
MRS monitors its energy efficiency of its operations by measuring the quantity of liters consumed in transporting 1,000 real gross tons per kilometer (liters per thousand TKB). The global indicator points to the combined efficiency of the three cargo groups in which the Company operates: Ore, Agricultural Products and General Cargo. Monitoring allows the identification of opportunities for gains aimed at improving energy efficiency indices, such as locomotive isolation, increase in Average Authorized Speed (VMA – acronym in Portuguese), increase in train weight, change in cadence point, improvements in driving pattern, among others.
Energy Efficiency
(In liters/kTKB)
As a result of the initiatives, in 2022, the global energy efficiency indicator achieved by MRS was 2.489 L/kTKB, indicating a reduction of just over 1% in the budgeted fuel for the period. The figure represents savings of more than 2 million liters of diesel. As this is a global indicator, energy efficiency data undergo periodic audits by the Internal Audit area, both with regard to the generation of target values and the calculation of actual values.
Annually, MRS establishes KPIs, automatically generated by a measurement system, for each of the cargo segments with a focus on fuel reduction, maintaining the safety and quality of operations. To inspire new initiatives, benchmarking with the world’s leading railroads is continuously performed. In 2022, it is worth highlighting the review of pre-established paradigms for the allocation of resources and processes, which allowed the Company, without a relevant volume of investments, to meet the challenges proposed for the period. For 2023, investments are planned in maintenance projects that will contribute to increasing the speed of trains and, consequently, to significant savings. The modernization of the currently used simulators is also planned, allowing driving analyzes with new perspectives and increased speed.
Total internal organization energy consumption
(in GJ)
The results of the Ore and General Cargo groups (94% of TKB production in 2022) showed improvement compared to the previous year, with 1.17% and 2.11% reduction, respectively, in the energy efficiency index. It is worth mentioning that in Ore segment, this was the best result ever achieved in MRS history. The representation of ore volume is decisive for the result of the global energy efficiency, since this is the cargo group with the best energy efficiency among all and any reduction in its representation directly affects the global indicator.
In Agricultural Products, the result was lower than expected compared to 2021, with 3.52% increase in the indicator. Performance was affected by the increase in the group’s volume as compared to the budget, requiring the use of less efficient locomotives for transport since the remaining premium fleet already was allocated to other transport streams.
For 2023, the global efficiency target estimates a decrease of approximately 2.3 million liters of diesel compared to 2022, a number that will be adjusted throughout the year based on the product mix and volume to be transported.
Energy Efficiency
(Global Evolution)
In 2022, MRS also continued to reduce the Transit Time for iron ore (calculation of the time it takes to transport cargo from origin to destination), due to continued improvements in the performance of the Unmanned Train (TNT – acronym in Portuguese) and operational gains.
With the formalization of the Concession Renewal, MRS has a prospect of fleet renewal in the coming years, with the acquisition of approximately 150 locomotives to replace old models that will no longer be used. When completed, the process is expected to take the Company to a new level of operational efficiency.
Transit Time
(time from origin to destination)
