Annual Report
2022 Sustainability 
Relationship management

Society‌

GRI 3-3 material topic Relationship with surrounding communities, 2-28, 202-1, 203-1, 203-2, 413-1, 413-2

The high level of interface with communities is one of the main characteristics of rail transport in Brazil.  MRS recognizes the importance of its role and is committed to perform its activities with ethics and transparency, acting in the management and mitigation of the impacts caused by its operation, contributing to the sustainable development of the regions, in accordance with the applicable laws and international regulations.

To this end, the Company maintains policies, programs and actions aimed at the external audience, with emphasis on the communities located around the railroad. In 2022, MRS Institutional Relationship teams resumed their routine actions and on-site events with municipal governments and leaders of communities located around the railroad, considering the necessary precautions to control the health risks related to the pandemic.

Actions and events for managing impacts related to railway operations and improving relationships with interface audiences are carried out frequently, in a process called Dialogue Methodology.

With formal and informal structures at various management levels, the process aims to promote solutions for the most diverse demands of the community and Public Authorities, ensuring dialogue tools that allow an ethical and advantageous relationship for all parties involved. In addition to handling routine demands, in 2022 the Company entered into partnerships that resulted in 37 initiatives, such as construction and revitalization of leisure areas, urban mobility actions, construction and implementation of waste segregation and treatment plants, creation of community vegetable gardens and support for local small social projects in municipalities in the states of Minas Gerais, São Paulo and Rio de Janeiro. MRS provided a total amount of R$ 3 million through its own funds, in 2022, for actions, partnerships and donations.

The Company also resumed the Espaço Aberto MRS e Comunidade (MRS and Community Open Space), an event held annually that had been discontinued during the pandemic. Representatives from different areas of the company present a positive agenda, with the main actions and investments, and open room for thematic work groups, expanding opportunities for dialogue and community participation in the development of solutions. In 2022, three editions of Open Space were held, bringing together 127 participants among community leaders, representatives of the Public Authorities and legislative houses, residents and managers of MRS partner social projects.

In another initiative, the Company creates Dialogue Committees, whereby meetings are held to address demands, involving managers and external audiences, in the search for shared solutions. Over the last year, 233 small on-site events were held with this format, in the three states where MRS operates, with the presence of community leaders and representatives of the Public Authorities and City Councils.

Seeking the improvement of these processes, in 2022, the Company had the support of two external consultants for the diagnosis of its social initiatives and the construction of a proposal for the structuring of relationship actions and social interfaces made by MRS, based on good market practices and global indicators, such as ESG and GRI. The multi-annual action plan will start in 2023, and provides for the implementation and monitoring of social indicators that will allow increased transparency and qualitative and quantitative analysis of results, initiatives related to social and incentivized projects, displacement of populations and institutional and community relations.

In addition, in line with the actions described above, a new sector is in the process of being structured, called the Social Policy Management, which will be responsible for structuring and conducting processes related, among others, to the displacement of populations and the relationship with communities.

Accident prevention actions

In 2022, MRS started a pilot project to expand the scope of its actions aimed at promoting a safety culture to prevent accidents in communities.  Through initiatives with high local impact, such as the contracting of campaigns applied to municipal public transport vehicles (busdoor), the Company expects to increase the reach of its messages by talking directly to communities. Digital campaigns and information, disseminated through social media and messaging applications, were also intensified. Actions were carried out in 14 municipalities, with an estimated coverage of 40,000 people (excluding the reach of social media), in locations with the highest incidence of accidents.

Donations and sponsorships

In 2022, through the Childhood and Adolescence Fund, MRS supported 16 Municipal Councils of Rights of the Child and Adolescent and 11 Municipal Councils of Rights of the Elderly. The Company also sponsored 15 projects through the Federal Culture Incentive Law and 4 sports projects through the Sports Incentive Law. Social and cultural investments totaled R$ 11.1 million in the period.

As a way of reiterating its commitment to railway history, MRS also maintained its support for the largest memory and historical heritage preservation program ever carried out in Brazil, called “Resgatando a História” (Rescuing History). In partnership with BNDES and other private sector companies, the project is expected to receive a total contribution of R$ 200 million over the next three years.

In addition to the initiatives that make up a structured program focused on actions for the community and society, MRS promotes, annually, several small charitable donations that contribute to a better relationship with the communities.

Also in 2022, the demand for this kind of donations for community events at Easter, Children’s Day and Christmas was intense and resulted in the delivery of more than 15,000 items, including chocolate boxes, toys, milk and school kits, distributed to 32 municipalities where the Company operates.

Close relationship with the public

MRS believes that being close to its audiences is key for the good performance of its operations in accordance with the principles in which it believes. In line with this policy, the Company maintains a service channel for registering complaints from leaders and representatives of communities and Public Authorities. The toll-free 0800 number is also available, ensuring direct access to Institutional Relations teams via phone and messaging application. 

The interactions are made on a voluntary basis and enable the understanding and handling of complaints and demands associated with the impacts of the operation, as well as the establishment of partnerships to implement actions that add value for both parties.  In this context, MRS continues committed to handling and answering 100% of the demands or complaints received.

Demand and/or complaint handling process

Demand and/or complaint handling process

Figure 1: Flow for Handling Complaints and Demands from the Community.
Source: MRS LOGÍSTICA S.A.

Relationship Channels

Complaints, suggestions or requests are received through the phone number 0800-9793-636, through “Contact Us” area on MRS website or through formal documents (such as letters from Government Agencies and Lawmakers (City Council).).

Complaints and demands are analyzed regionally and referred to the responsible areas within MRS.

The technical area in charge assesses the best form for resolution or proposes mitigation measures. When necessary, occasional meetings are held with the claimants for a better understanding of the issues and to propose shared solutions (Dialogue Committees).

MRS responds to all inquiries or complaints, by phone, e-mail or formal letter to applicants.

The results of the process of mapping, identifying and mitigating complaints or requests formalized with MRS are monitored by an Institutional Relations Index. Service and resolution levels are linked to performance assessment and the Company’s variable compensation program for the Institutional Relations officer, managers and teams.

The Index considers all complaints and demands from communities filed in the period between 01/01/2022 and 09/30/2022, assessing the completion of records according to criteria formalized by MRS. In 2022, 530 occurrences were recorded, with 500 completed and an Institutional Relations Index of 94.3%, slightly higher than 2021 index, at 94.1%.  For the purposes of determining results in the performance assessment and the variable compensation program, the indicator has a specific calculation log, so that the goal for 2023 is to maintain the standard of service and resolution at 93%, considering the new scenarios with investments resulting from the extension of the concession agreement and the commitment to meet pending demands from the previous year.  Historically, over 50% of the complaints and demands made by the community and Public Authorities refer to the maintenance of the right-of-way area (removal of household waste, plant control, repair of fence walls and accesses over the railroad). The complaints and demands related to the interruption of access at crossings due to operational issues and noise have been systematically addressed over the years, and currently occur on an one-off basis. The exception is horn noise, which requires complex solutions and involves regulatory issues in the sector.

Right of way area and housing issues

Year after year, MRS continues to improve its processes for mitigating impacts arising from its operations and investing in solutions for housing issues for families at risk, close to the right of way area. 

In 2022, the Company relied on expert advice on the subject aiming to improve its processes, supported by best market practices and international recommendations, aimed at formalizing rules and criteria for the displacement of populations.  Reflecting these efforts, two cases stood out in the period.

The first was a project for the relocation of 46 families residing in two areas of illegal occupation in Ibirité (MG). To ensure comfort for the community and legal compliance, MRS hired a specialized consultancy and offered social assistance and real estate negotiation professionals to negotiate with this community. Fair agreements were reached, based on real estate regulations, and with these amounts the families were supported in the process of acquiring their new homes. The project is expected to be completed in the coming months and is monitored by the Civil Defense and Social Department of the municipality. A total budget of R$ 5 million is allocated for the acquisition of these new homes.

The second case is in Suzano (SP), where more than 300 illegal properties were registered and a plan to relocate the families was drawn up together with the municipal government. The first phase of the project will contemplate 53 housing units in higher risk situations and is in the approval phase with the communities and formalization of the partnership with the Municipal Government, which will provide the land and implement the basic infrastructure. A total of R$ 6 million was allocated by MRS for the construction of housing units in this project.

In addition to issues related to the displacement of populations, MRS has invested in projects for the requalification of unoccupied areas, aiming to provide better use of urban spaces through green areas, parks and gardens with safety, also ensuring the integrity of its right of way area.

Communication with stakeholders

GRI 2-29

To encourage employee engagement and correctly inform society about important topics about the Company and its contribution to national logistics, MRS maintains a proactive communication policy. 

In communicating with employees, the Company uses specific channels offering content via intranet, weekly newsletter with instant messaging application, corporate events, among others. For the external audience, MRS uses channels such as the website, landing pages on specific topics and official profiles on the main social media, through which it disseminates its messages in a more efficient and targeted way.

In 2022, MRS actions on social media reached 19.9 million people. The best performing channel was Instagram, which accounted for 49% of the total reach, followed by LinkedIn, representing 24% and Facebook, with 21%. The posts with the most expressive results were those related to internal and external engagement with MRS brand, reaching 6.5 million people, which corresponds to 33% of the total. Disclosure of job opportunities and posts promoting MRS as an employer brand are examples of topics under this type of message. The safety topic was the second top topic on social media, reaching more than 1.5 million people. Some examples of campaigns promoted are #30DiasPelaSegurançaFerroviária, raising awareness about the importance of stopping, looking and listening, and the use of security camera footage as a warning of recklessness.

Press Relations

MRS values the maintenance of a cordial and constant relationship with the press, both in publications of general information and in those specialized in engineering, railroad or logistics.

By frequently offering articles about the railway and the initiatives promoted by the Company, as well as responding to demands sent by journalists, MRS seeks to maintain a weighted average between positive and negative insertions, adopting the Press Quality Index as a metric.

In 2022, the average was 2.50, meaning that for each negative insertion there were 3 others with a positive tone. Positive insertions are those that promote or strengthen MRS global reputation and the railway activity. The Index includes articles published in national vehicles, in more relevant specialized publications and in regional vehicles in the main cities where MRS is present.  Last year 888 MRS insertions were registered in news reports. The most prominent topic was concession renewal, followed by business, accidents and social and cultural support.

MRS exposure in the press in 2022

  • Concession
  • Business
  • Safety
  • Accidents
  • Social and Cultural Support
  • Infrastructure
  • Maintenance and improvements in Right of Way Area
  • Public Recognitions
  • People Management
  • Community complaints
  • Unfavorable scenario
  • Others

MRS is a member of National Association of Railway Transporters (ANTF – acronym in Portuguese), a national non-profit entity created to defend and promote the development and improvement of rail cargo transportation in the country.

MRS is part of all ANTF Committees and Working Groups, and is therefore involved in all matters relevant to the railway sector and the company’s business. The processes of interest in sectorial entities are tracked and monitored, ensuring that the relevant issues for MRS are analyzed and addressed in-house, with the effective participation for the strategic decisions of the business.

MRS has a series of obligations with the Granting Authorities and is subject to the regulation, supervision and inspection of the National Land Transport Agency (ANTT – acronym in Portuguese). The Company must comply with and meet all applicable rules for an appropriate public service provision, which includes fostering for the physical integrity of the assets associated to the concession, maintaining operating and conservation conditions, as well as ensuring the operational safety of its railway assets. MRS maintains constant dialogue with ANTT, its technical and management staff, based on transparency, respect and technical approaches.  The targets set under the Concession Agreement signed with the granting authority are related to accidents and production (learn more in Health and Safety Management section). The contractual goal indicators are agreed upon every five years and the figures are ratified or rectified annually for the following year. The production target is established per railroad stretch, calculated per railroad corridor, after normative changes by ANTT.

MRS reports information on a monthly basis, such as transportation flows, production per stretch, number of accidents, fuel consumption and other data related to the concessionaire activities.  

DNIT (National Department of Transport Infrastructure – acronym in Portuguese) is responsible for the maintenance, expansion, construction, inspection and development of technical studies to solve problems related to road, rail and waterway modes. MRS relationship with the entity is based on transparency, respect, and technical grounds, with constant contact with the technical and management staff.

In addition to this role, DNIT also has the duty of performing works on the railway network under its responsibility, especially those intended to eliminate conflicts between railways and urban roads.  In cases involving the execution of works in the network under MRS’ concession and where there is a need for assessing technical and operational safety standards, the concessionaire offers the necessary support for the project implementation, and may also support demands with the municipality receiving the investment.

MRS relationship with the Ministry is guided by transparency, respect and technical grounds, in constant dialogue the technical and management staff of the Ministry. This relationship was even closer in 2022, due to the early extension of our Concession Agreement, for which we maintained a constant relationship with the technical areas of the Ministry of Infrastructure to understand the Government’s strategy regarding the definition of investments arising from the public policy.

Rights of indigenous people

GRI 411-1

MRS carries out sporadic mapping of the presence of indigenous peoples in specific projects. The company is aware of quilombola communities in Paraopeba region (MG), with no significant contact with the railroad operation. In 2022, a specific movement of indigenous peoples was seen in MRS operational area with the aim of attracting the attention of other stakeholders in the region.  The Company acted in the case by contributing to the mediation of the conflict and promoting opportunities for dialogue.

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