Latin America Sustainability Profile – English

A Message from Our PresidentGE Latin America is pleased to present this Sustainability Profile in which we articulate our commitment to the sustainable development of the region and the sustainable management of our business.

This report, undertook for the first time in Latin America, provides a broad vision of the initiatives implemented by the company throughout the year and of the impacts of the company’s decisions and operations in the region. The metrics contained in this document relate to the period from January 1st to December 31st, 2012.

We are committed to solving problems for our customers and our communities, to finding solutions that benefit the planet, its people and the economy. This commitment is part of our business strategy as well as of our culture. This is how we define Citizenship at GE: a full-time commitment to improving our social, governance, environmental and economic sustainability efforts.

GE started operating in Latin America in 1896 with its first plant in Mexico, and has expanded its operations throughout the region over the last 116 years. Today, Latin America is one of GE’s fastest-growing emerging markets. Our company is dedicated to technology, research, and innovation to address Latin America’s challenges in the energy, water, oil and gas, health and transportation infrastructures. Building, powering, moving, curing: this is how GE works, whether it is through responsible business,

GE Foundation’ social investment, or GE Volunteers’ activities in the communities where we operate.

Latin America has experienced rapid economic change in recent years, which has led to new business opportunities but also to significant sustainability challenges. The region is the most urbanized in the world, with 80% of its population living in cities. It also has become one of the largest energy consumers, therefore demanding massive investments in infrastructure. Governments are seeking to promote economic growth and development through local content production requirements for international companies.

Our business strategy responds to these regional priorities. Publishing this Sustainability Profile is part of this undertaking and of our willing to demonstrate our dedication to Latin America’s sustainable development. This publication is focused on three areas: People, Planet and Economy. Across these sections, we try to illustrate our belief that technology and talent are key elements to meeting regional sustainability objectives.

TECHNOLOGYGE is building its fifth Global Research Center (GRC) in Rio de Janeiro. Expected to employ 400 researchers and engineers at full capacity, we already have 80 researchers working on developing technological solutions in the oil and gas, bioenergy, mining, rail, aviation and healthcare industries.

In parallel, our businesses continue to expand our ecomagination and healthymagination portfolios, thereby enabling our customers and communities to be more productive and resilient. Ecomagination is based on the idea that efficiency can help customers, transform industries and protect the environment. One example is GE’s TM2500 trailer-mounted aeroderivative gas turbine we distribute in Venezuela, a solution that provides electric energy in a more cost efficient, environmentally friendly and flexible way. Healthymagination is about providing better health for more people by focusing on improving quality,

expanding access and increasing affordability of care. As part of this strategy, GE introduced the Brivo OEC 850 mobile surgical C-arm in Argentina, a high-quality, cost-conscious mobile imaging device.

TALENTInnovation and technology development require talent, and GE is deeply committed to developing people. We believe our contribution is all the more important as many countries in the region are facing a shortage of qualified labor, essential to sustain economic growth and improve Latin America’s competitiveness. We believe that education systems must align with the changing requirements of the economy, and that employers and educational institutions must collaborate over skills development. Our contributions range from our partnerships with technical schools and universities, GE Foundation and Volunteers’ long-standing collaboration with Junior Achievement, to GE’s leadership programs.

Looking forward, we recognize there is much work to do, and we will continue our sustainability efforts as an integral component of GE’s business growth in Latin America.

I hope you enjoy the reading.

Reinaldo Garcia

Presidente & CEO Latin America

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Leadership Leadership

Reinaldo GarciaPresidente & CEO Latin America

“Latin America has experienced rapid economic change in recent years, which has led to new business opportunities but also to significant sustainability challenges.”

Our CompanyFor more than 130 years, GE has put imagination into practice by solving some of the world’s toughest challenges.

Inventor of the electric light bulb and at least a thousand other innovations, Thomas Edison founded the Electric Light Company in 1879 — the first step towards creating GE. Today, GE is an advanced technology, services, and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, water, health, and transportation infrastructures, GE operates in more than 160 countries and employs about 305,000 people globally. Building, powering, moving, and curing: this is how GE Works.

GE IN LATIN AMERICASince starting its first operations in Mexico in 1896, GE has established a solid presence in Latin America. Today, we have 22,000 employees who work in 84 offices and 44 industrial facilities across 31 countries, and our regional headquarters are located in the city of São Paulo, Brazil. We have become a diversified business grounded in technology, research, and innovation, and we manufacture locomotives, equipment and solutions for water treatment and reuse, and healthcare equipment. We also develop and provide power generators, aviation equipment and overhaul services, lighting solutions, and financial services. The main industries we serve in the region are: energy, mining, oil & gas, water & process technologies, aviation, transportation, power generation, and healthcare.

With revenues of US$8.2 billion in 2012, Latin America is one of GE’s fastest-growing emerging markets and represents a key element of GE’s expansion strategy in emerging economies.

We are contributing to solve Latin America’s infrastructure bottlenecks and bringing world-class GE technologies and solutions in transport, healthcare, water, and energy.

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Our Company Our Company

GE sites in Latin America

Citizenship at GE is a full-time commitment to improving our social, governance, environmental, and economic sustainability efforts in the countries where we operate.

GE’s code of conduct, “The Spirit & the Letter,” guides the way we do business in Latin America. Citizenship is a central element of our mission and performance, and we strive to embed our sustainability efforts in our strategy, core business operations, and daily actions.

As in any other region, the challenges that we face in Latin America are unique and require efforts that are developed and implemented locally. To be sustainable is to be competitive today and in the future, and our commitment to citizenship is key to meeting our short-term objectives and ensuring the long-term sustainability of our business.

Latin America and the Caribbean are rich in energy resources, including hydrocarbons, hydroelectricity, and biofuels. The region has experienced rapid industrial and economic growth over the past several years, benefitting in large part from the commodities boom. The economy of the region is expected to grow 3.6 percent in 2013, up from 3 percent in 2012. Consequently, the infrastructure segments of the economy are growing at a faster pace.

Latin America and the Caribbean is also the most urbanized region of the world according to the United Nations Human Settlement Program (UN-Habitat), with 80 percent of the region’s population living in cities, a percentage which is estimated to grow to 89 percent by 2050.

While these trends have led to new business opportunities, they have also led to significant sustainability challenges by placing increasing strains on physical infrastructure and social systems. For example, Latin America has become one of

largest energy consumers in the world, creating greater demand for energy infrastructure and supply. Yet, approximately 40 million people still lack access to modern electricity services today.

According to the World Bank, the Latin American middle class (those in the income bracket of US$10-US$50 per capita per day) grew 50 percent in the last decade, and represented 30 percent of the population, or around 152 million people, in 2010. However, levels of inequality in Latin America are still among the highest in the world, with at least two in five people living below the poverty line (people living with US$2 per day or less).

One of Latin America’s challenges in the coming decades is to strengthen institutions, as the region needs to develop governance mechanisms that are able to sustain economic growth, create resilience to external shocks, and improve socio-economic equality.

REGIONALIZING GE’S CITIZENSHIPAs part of our ongoing commitment to help solve these challenges, we went further to localize our global sustainability agenda in Latin America in 2012, with a primary focus on Brazil. This regionalization effort began by identifying social, environmental, and economic challenges most material to GE in the region, and facilitating the incorporation of sustainability principles into our local business strategy, processes, and culture. Our regional sustainability agenda aims to address four key value drivers:

Localization. In Latin America, as in many other emerging economies, governments are looking to global companies to commit to local growth and development and to drive efficiency. Localization covers a variety of questions, such as local content manufacturing requirements, technology transfers, local skills and supply chain development, and local community investment. Localizing GE’s business and expertise in Latin America is part of our business strategy as we aim to collaborate effectively with governments and other stakeholders to meet the country’s development objectives.

GE Citizenship in Latin America

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Overview Overview

CapitalGE Capital is a leading provider of lending and leasing solutions for companies of all sizes in a wide array of industries. We work closely with our customers to provide financing to purchase, lease, and distribute equipment. We also provide capital for corporate acquisitions, refinancing, and restructuring operations, as well as services to manage large fleets of cars and other automotive equipment.

GE AviationGE Aviation is a world-leading provider of jet engines and systems for aircrafts, with an extensive global service network to support its customers worldwide.

GE Energy ManagementGE Energy Management develops solutions for the delivery, management, conversion, and optimization of electrical power for energy production and distribution companies in Latin America and worldwide. GE Energy Management is divided into three business units: GE Digital Energy, GE Power Conversion, and GE Industrial Solutions.

GE Healthcare GE Healthcare provides medical technologies and services. With extensive knowledge in diagnostic imaging and information technology, patient monitoring systems, drug discovery, and manufacturing technologies for pharmaceuticals, GE Healthcare is helping healthcare professionals to provide better care to patients around the world

GE Oil & GasGE Oil & Gas is a world leader in equipment and advanced technology services for all segments of oil and gas drilling and production, Liquefied Natural Gas (LNG), pipelines and storage power generation, refining, and petrochemicals.

GE LightingGE was born from the invention of the first affordable, incandescent lamp in the world. More than a century later, GE has revolutionized the industry with the development of new technologies, such as fluorescent and Light Emitting Diode (LED) technologies. LED lighting solutions are more energy efficient and entail lower cost of operation. In Latin America, GE Lighting delivers products under the trademark of Smart Energy, in addition to other GE registered trademarks: Evolve, GTx, Immersion, Infusion, Lumination, and Tetra.

GE AppliancesGE is one of the largest appliance manufacturers in the world. In Latin America, GE Appliances has established a joint venture with Mabe.

GE Power & WaterGE Power & Water provides power generation and water process solutions, including renewable sources, such as wind and solar, biogas and alternative fuels, coal, oil, natural gas, and nuclear energy. A world leader in systems, processes, and water and wastewater treatment, GE Power & Water produces aero-derivatives gas turbines, gas engines, power generation services, including nuclear power, renewable, and thermal energy, and water process technologies.

GE TransportationGE Transportation is a global technology leader and supplier to the railroad, marine, drilling, wind, and mining industries. GE Transportation provides freight and passenger locomotives, railway signaling and communications systems, information technology solutions, marine engines, motorized drive systems for mining trucks and drills, high-quality replacement parts, and value added services.

The way we work with our business and community partners is rooted in our collaborative and high-performance culture, which is expressed through GE’s “growth values”—external focus, inclusiveness, imagination and courage, clear thinking, and expertise.

We are committed to helping our customers succeed, providing our employees with the resources they need to reach their goals and aspirations, and investing in our communities to ensure shared success. We focus our efforts around developing research capabilities and technical skills, improving access to quality healthcare, and investing in the communities where we live and work through social investment and targeted volunteerism.

LOCALIZATION AND CUSTOMERS PARTNERSHIPSTo better serve our customers’ local needs, we have made Brazil the home of GE’s fifth Global

Research Center (GRC), the first in Latin America. To be inaugurated in 2014 in Ilha do Fundão in the city of Rio de Janeiro, the GRC already employs 80 researchers working on developing technological solutions in the oil and gas, bioenergy, mining, rail, aviation, and healthcare industries.

With an investment of US$250 million, this 290,000-square-foot, multi-disciplinary research and development facility will employ 400 researchers and engineers at full capacity, and will house four Centers of Expertise (CoE). The Bioenergy Systems CoE develops more efficient solutions to convert biomass and waste into energy, reducing the use of natural resources. The Smart Systems CoE provides our customers with more autonomous systems to help them with process control, data monitoring, and decision making, guaranteeing production efficiency. The Systems Integration CoE addresses customer software challenges bringing new technologies for data analytics, optimization and simulation, integration platforms, and information visualization. Finally, the Subsea Systems CoE houses researchers

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Overview People

Energy, water, and climate change.Through ecomagination, we are helping our customers to solve their environmental challenges by focusing on improving their water, energy, and greenhouse gas (GHG) emissions footprints, while driving profitable growth. Globally, we have invested more than US$5 billion in clean Research & Development (R&D) since 2005, and we plan to invest another US$10 billion by the end of 2015. The ecomagination platform also includes commitments to improving the environmental performance of our facilities, including reducing our energy and GHG emissions intensity and minimizing our water consumption; and communicating to and inspiring our customers, commercial partners, and the broader public to use more environmentally friendly technologies. For more on ecomagination, visit www.ecomagination.com.

Access to healthcare.Healthymagination, launched in 2009, is our commitment to bringing high-quality, affordable healthcare to more people around the world. Globally, we are committing US$6 billion, with US$3 billion dedicated to developing 100 innovations by 2015 that increase access to higher quality and more affordable healthcare. This commitment also includes strengthening the health for our GE employees through our internal health and quality of life program, HealthAhead. For more on healthymagination, visit www.healthymagination.com.

Skills development.Developing a skilled workforce is vital to our business and to the overall development and economic growth of the region. We are partnering with governments, universities, and technical education institutions to develop the technical capabilities needed to meet market demands and help the region improve its competitiveness. In total, GE spent approximately US$5 million in Leadership Learning in 2012.

In addition to these three pillars, we are working to improve the quality of our employee-based volunteer programs and GE Foundation-funded initiatives by aligning our social investment and community engagement efforts with the challenges facing our surrounding communities in Latin America.

Regulation. The environment has become a public-policy priority, particularly as it relates to infrastructure development. We provide environmental technologies and invest in shaping and supporting sound environmental regulations and public policies.

Customer orientation. With rapid economic growth, social and environmental constraints on our customers and local communities are rising. More companies in Latin America see sustainability as a business imperative, whether this is to secure a license to operate or to harness new growth opportunities. We believe that providing technological solutions offering greater ecoefficiency, as well as aligning our commitments to customer and societal expectations enhances our competitiveness.

Reputation. Being responsive to the expectations of our stakeholders—including those of a future workforce that desires to work at socially responsible companies—is vital to achieving our business goals in Latin America. We are proactively engaging with employees, local communities, universities, business partners, governments, and non-governmental organizations (NGO’s) and expect our local leaders to serve as ambassadors of GE’s citizenship.

ACTIONS & PRIORITIES GOING FORWARDIn 2012, we initiated a process of engaging our leaders on reflecting and advancing sustainability throughout our company. We also consulted with representatives from external stakeholder entities, including key customers, trade associations, environmental agencies, NGO’s, and governments, to learn about their perceptions and expectations of GE’s sustainability practices. For this first exercise, we limited our engagement with stakeholders to Brazil.

Through these engagements, we have identified four strategic sustainability topics, which have become the focus of our local efforts: • Access to healthcare;• Skills gap;• Water scarcity and quality; Energy consumption;

Climate change

• Local Development

Among our continuing efforts to address these challenges are:

and engineers in the oil and gas industry, focusing on offshore drilling and production.

In Mexico, our GE Advanced Engineering Center (GEIQ) is another example of GE’s commitment to conducting local R&D that will address our customers’ sustainability issues in the aviation and power generation industries. The Center develops some the most advanced aeronautical and power generation technologies, designs, and diagnostic tests. It is the largest technological center outside the United States for Aviation and the second largest for Power & Water, and has tripled its size in the last five years. The GEIQ employs 1,600 local engineers.

Among other initiatives, our researchers at GEIQ have participated in the design of the GEnx, a next generation turbofan jet engine. The GEnx represents a giant leap forward in propulsion technology and uses the latest-generation materials and design processes to reduce weight, improve performance, and lower maintenance costs. GEnx engines deliver 18 percent better fuel consumption (which translates to a decrease in carbon dioxide emissions of 18 percent) than the engines they replace. These engines are also some of the quietest, most passenger-friendly commercial engines ever produced due to larger, more efficient fan blades that operate at slower speeds, resulting in about 30 percent less noise.

Our businesses also work directly with our customers to develop solutions that address their sustainability challenges. To help airlines reduce their fuel consumption, GE’s Fuel & Carbon Solutions (FCS) combine advanced data analytics and industry expertise to identify, implement, and monitor changes in the way flights are planned and flown, improving fuel efficiency. FCS has already helped customers such as Brazil’s GOL Airlines cut fuel consumption significantly. We estimate that the FCS innovations, along with Performance-Based Navigation (PBN) strategies, could save the entire global airline industry more than 1.3 billion gallons of fuel per year while eliminating more than 12.4 million metric tons of carbon dioxide equivalent emissions.

We have also demonstrated our commitment to our customers by providing training and sharing best practices. In 2012, we organized the first Leadership For Customers (LFC) program in Mexico

for 20 of the most influential executives of major Mexican companies. The leadership course enabled participants to share experiences and gain new perspectives on the opportunities and challenges facing their businesses. During an intensive two-day conference, participants discussed a variety of leadership styles and their effects on quality, business development, and performance.

EMPLOYEESGE has a long tradition of investing in talent development. In Venezuela, we developed a training center with Petróleos de Venezuela, S.A. (PDVSA), Venezuela’s state-owned enterprise in oil and gas, with the aim of providing specialized courses in turbines and centrifugal compressors. Located close to the residential area of Campo Sur in the Venezuelan state of Anzoátegui, this training center is helping boost existing local knowledge and capabilities in a technology that will bring new opportunities and growth to the country. This partnership with PDVSA will include equipping the center with supplies and training materials, executing training courses, and developing new ones that are relevant to employees and customers.

The health and safety of our employees is critically important to the overall success of our business. We work every day to protect our employees by integrating GE’s Environment, Health and Safety (EHS) standards into every person’s job and into all business processes.

One of the ways in which we ensure our workers’ health and safety is through our global health and safety certification award program, GlobalStar™. Built on 21 elements, this program has helped improve teamwork and create a stronger bond with the company, all while building leadership skills and preventing workplace accidents.

COMMUNITIESGE’s business depends on the infrastructure, skills, and institutions of stable, prosperous societies and healthy environments. To succeed, we need to be part of building the communities in the locations where we operate.

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The GE Foundation has also made social impact in Latin America through grant-funded programs and partnerships. In 2012, the GE Foundation provided more than US$1.5 million to 11 partners across Latin American in the areas of health, education, and public policy.

important aspect of employee life across all GE operations in Latin America.

We have 20 GE Volunteer Councils across 10 countries in Latin America, each one managed by local employees. In total, more than 11,000 GE employees in Latin America volunteered in 2012, contributing more than 115,000 volunteer hours and conducting 491 volunteer events with 103 local organizations. Andre Elmer, a dedicated member of our GE Aviation team, was one of four employees globally to receive the Gerald L. Phillippe Award in 2012, GE’s most prestigious recognition of personal civic involvement. We also received GE’s Impact Award for our “Celebrating 115 Years of Good Deeds” anniversary campaign in Mexico, where we exceeded our goal to achieve 115,000 hours of volunteering through three thematic projects: build 115 homes in poor communities, read 115,000 hours with families, and improve lighting for 115 schools. This award recognizes exemplary employee volunteer projects managed by GE Volunteer Councils around the world every year.

The GE Foundation has also made social impact in Latin America through grant-funded programs and partnerships. In 2012, the GE Foundation provided more than US$1.5 million to 11 partners across Latin American in the areas of health, education, and public policy.

In Panamá, the GE Foundation has focused primarily on education, and has recently started a program to teach communities and schools about recycling. We have developed a partnership with Escuela para Directores (School for Directors), a training program and collaboration with the Ministry of Education to improve teachers’ knowledge of recycling. In 2012, we worked with the University of Panamá and more than 50 public schools to expand this initiative by establishing an ethical committee for teachers and developing new methodologies to improve leadership in education.

We are also helping improve national healthcare systems through the GE Foundation’s Developing Health Globally (DHG) program, a signature initiative to improve access to quality healthcare for some of the world’s most vulnerable populations through strategic investments in healthcare infrastructure

Latin America is home to 23 percent of the world’s forests and 31 percent of its freshwater resources. Yet population growth and increasing consumption patterns have driven the decimation of natural resources for agriculture and raw material extraction, with impacts on the region’s biodiversity. The region’s growing population, largely urbanized, poses challenges to providing safe water and sanitation in cities, as well as to addressing air pollution and the contamination of water sources. Competition for scarce resources and the inequitable distribution of wealth have also led to emerging socio-environmental conflicts.

Some of the key environmental issues in the region include: urban-industrial pollution; mismanagement of natural resources, including deforestation and the consequent loss of biodiversity; and the high vulnerability of urban and rural populations to natural disasters.Additionally, global climate change exacerbates many of the region’s existing problems and threatens poverty reduction and economic growth. Although the region accounts for only 12 percent of the world’s GHG emissions, it is already experiencing the adverse consequences of climate change: extreme weather patterns and climatic events are increasing in frequency and intensity, affecting the region’s most vulnerable groups.

Recognizing this challenge, we are working to track and reduce the impacts of our operations and supply chain by managing our environmental performance using proprietary EHS management systems and Supplier Responsibilities Guidelines (SRG). We also recognize the significant impacts we can make through our products in use. For this reason, we focus

on developing technologies and solutions to reduce our customers’ environmental footprints. We believe that these efforts will also provide economic benefits to the regional economy in the form of cost savings and employment opportunities.

WATERLatin America has vast resources of fresh water with some of the world’s largest rivers—the Amazon, Paraná, Orinoco, and Magdalena; and lakes—Maracaibo in Venezuela, Titicaca in Peru and Bolivia, Poopo in Bolivia, and Buenos Aires, shared by Chile and Argentina. However, due to rapid industrialization, population growth, pollution, and socioeconomic inequality, more than 70 million Latin Americans lack access to clean water and 100 million lack access to safe sanitation. In 2010, a quarter of the population did not have access to improved sanitation, well short of the United Nations’ Millennium Development Goal of 16 percent by 2015.

In response to water scarcity and quality issues, GE promotes wastewater reclamation, treatment, and recycling technologies, mainly for industrial applications and public utilities.

In Tijuana, Baja California, we are supplying water treatment equipment for Mexico’s first municipal water reuse plant, which is helping solve infrastructure and housing development needs in the area. Baja California is facing major water scarcity problems, which heightens the need for water reuse programs and technologies. Our water treatment equipment provides a system that reuses 100 percent of wastewater and helps the plant meet local water quality requirements. Today, the plant provides water

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Performance Highlights 2012

and medical technology and training. Established in 2004, DHG invests more than US$80 million in local initiatives in 14 countries across more than 200 health facilities, benefitting as many as 14 million people annually.

Through the DHG’s program in Honduras in 2012, we installed filtration systems to help increase access to potable water and lower the cost burden on local hospitals. GE Water redesigned the entire water treatment system to make it simpler and lower-cost, enabling hospitals across Honduras to more easily operate and maintain this new system where harsh environmental conditions and resource-poor settings are common challenges.

The GE Foundation team provided additional support for this initiative by partnering with Emory University to train local hospitals on how to test water safety and improve local healthcare practices

and standards. Improved patient monitoring, enabled through new equipment and training, has led to better overall management of fetal stress and hypothermia. Additionally, we provided new ultrasound technologies to enable faster, more accurate diagnoses for pediatric pneumonia and abdominal trauma. All of these efforts have had a positive effect on maternal and infant morbidity and mortality. For example, early reports indicate a substantial improvement in infant mortality rates at Escuela Hospital and Hospital Olanchito.

GE businesses have also partnered with the NGO Roof (“Techo”) across the region to provide emergency housing for families living in poverty or affected by natural disaster. In 2012, GE Volunteers helped build 123 homes in Brazil and Mexico, benefiting 123 families in total.

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for 3,200 families, irrigates green spaces in Tijuana, and replenishes the aquifer. With the success of this project, other states in Mexico, such as Guanajuato and Guadalajara, are interested in deploying this water reuse technology.

To address plant downtime and peak production demand, we have also deployed mobile water treatment systems. GE has one of the world’s largest fleets of mobile water solutions that provide rapid response for a full range of reverse osmosis, filtration, demineralization, softening, and de-oxygenation treatment on demand. This equipment is assembled in mobile trailers and is available quickly on location for emergency, supplemental, temporary, or extended service without the need to build long-term and expensive infrastructure.

ENERGYIn 2012, we celebrated a significant milestone in the renewable energy space with the installation of our 300th wind turbine in Brazil. While Brazil has historically relied heavily on hydropower, which accounts for 75 percent of the electricity supply, the country also has vast, untapped wind resources, thanks in large part to strong and steady wind conditions along its 4,600-mile coastline. Whereas wind accounts for only 0.9 percent of Brazil’s energy supply, it is the fastest-growing source of power generation in Brazil, and GE is leading this effort.

In Venezuela, we are distributing aeroderivative gas turbines in an effort to provide electric energy sources that are more cost efficient, environmentally friendly and flexible. Our TM2500 trailer-mounted aeroderivative gas turbines—a certified ecomagination technology—generate 3,800 fewer metric tons of carbon dioxide per year for 25 megawatts of output, equivalent to the annual emissions of approximately 1,900 cars on the road in a year. These aeroderivative gas turbines were first introduced in Venezuela in 2005, and since then, have been used for applications such as supplementing power to the grid for peak shaving or seasonal demands, serving as a back-up power source at industrial plants, and providing power to remote areas or during natural disasters. This flexible technology allows us to bring energy to any place with speed and reliability.

In Chile’s northern Atacama desert, one of the world’s driest areas, we are providing GE’s power conversion technology to the country’s largest industrial photovoltaic (PV) power plant. The objective is to deliver clean energy to the region’s mining and other heavy industries. With increasing government regulations in Chile requiring more energy from renewable sources, this pioneering project fits into the larger trend toward greater industrial-scale solar power across Latin America.

We are also working with the local water utility in Chile, Aguas Andinas, to install three of GE’s 2.7-megawatt Jenbacher biogas engines to turn waste into energy and supply enough electricity to meet 60 percent of the wastewater treatment facility’s power need. Industrial facilities across Latin America still primarily rely on traditional fossil fuels for electricity, but GE’s fuel-flexible Jenbacher technology—which operates on natural gas and other alternative fuels—is offering customers an opportunity to recycle more of their own waste. This reduces energy costs while reducing environmental impacts.

ENVIRONMENT AND RESOURCE MANAGEMENTEnvironment and resource management at GE is led by our EHS team and relies on GE’s global Environmental Excellence management system. This system is based on 182 requirements in six areas: air, water, waste, waste and materials shipping, chemical content and general environmental management, compliance, and training practices.

In 2012, GE Mexico won the first Environmental Excellence certification in Latin America for its GE Energy Management EDESA site in Saltillo. Additionally, all sites in Mexico have active recycling programs. In 2012, they recycled 13 tons of plastic, 3 tons of aluminum and 93 tons of paper. We also continued to deploy our “Treasure Hunt Teams” throughout all industrial sites across the region, which engage employees to identify opportunities and solutions to reduce our energy and water footprints, as well as GHG emissions. Some of our most impactful projects in 2012 included the re-lamping of GE Water site in Cotia, and building a new wastewater station at our subsea system site in Macaé, both in Brazil

Performance Highlights 2012

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Notes to Data:

1. Energy Consumption includes all fuels and electricity used by all sites in the listed region.

2. Change in Energy Consumption is for all reasons including energy efficiency projects, changes in manufacturing processes and changes in production driven by market conditions.

3. Energy Intensity is the Energy Consumption divided by the industrial revenue for the listed region.

4. Water Withdrawal is the total site water supplies used by Criteria Sites (Sites that used 15 million gallons of water per year at any time since 2006) in the listed region.

5. Change in Water Withdrawal is for all reasons including water use reduction projects, changes in manufacturing processes and changes in

production driven by market conditions for Criteria Sites.

6. Greenhouse Gas Emissions are the sum of Direct (Scope 1) and Indirect (Scope 2) emissions for all sites in the listed region.

7. Change in Greenhouse Gas Emissions is for all reasons including Greenhouse Gas reduction projects, changes in manufacturing processes and changes in production driven by market conditions for all sites in the listed region.

8. Greenhouse Gas Intensity is the Greenhouse Gas Emissions divided by the industrial revenue for the listed region.

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guided flight path between Cusco and Lima creates additional predictability and continuity throughout the entire flight, improving air traffic efficiency, and reducing fuel use, carbon dioxide emissions, and noise. During the demonstration phase, participating airlines exhibited an average savings of 19 track miles, 6.3 minutes in flight time, 204 kilograms of fuel, and 644 kilograms of carbon dioxide equivalent emissions per flight.

JOB CREATION & SKILLS DEVELOPMENTJob creation and skills development are critical factors to ensure a vibrant economy and healthy society. In Latin America, 30 percent of the population is under the age of 15, placing greater emphasis on the need to close the education and skills gap and to expand the number of available jobs.

According to the World Economic Forum, Latin American countries rank the lowest in the world in terms of quality of education. Over half of the region’s 15-year-olds are functionally illiterate and score especially poorly in math and science, critical skills in today’s job market. According to the Organization for Economic Co-operation and Development’s Program for International Student Assessment (PISA), approximately 50 percent of Mexicans, Colombians, and Brazilians do not have the skills necessary to solve simple math equations or to explain basic scientific phenomena.

Education investments are inadequate and still favor high-income students. Despite increases in recent years, spending on elementary education is still relatively low throughout the region: per capita spending on primary education in Latin America averages approximately 22 percent of United States’ levels.

We believe that the quality of a country’s education system has a direct impact on economic growth. We are contributing to Latin America’s education challenges through our investment in skills development made on a continuous basis by GE businesses, as well as the GE Foundation.

In Brazil, we are partnering with the National Service for Industrial Training (SENAI), Brazil’s major institution providing vocational and technical training, to develop our future workforce and provide students

and trainees apprenticeships with GE. In 2012, we trained approximately 225 students across different businesses.

We also work with a range of educational institutions to build the capacity of young people and prepare them for entering the workforce. We created the Lean Challenge, inspired by the Toyota Lean Program, and interned 26 university students in 2012 for six weeks with the objective of identifying improvements in GE’s manufacturing processes. We also support “Science without Borders,” a program created by President Dilma Rousseff, to increase the international exposure of Brazilian students in science and engineering education. In 2012, we offered 10 Brazilian students with internships in GE operations in the United States in the fields of aviation, healthcare, and research and development.

GE Foundation partners with Junior Achievement to provide thousands of disadvantaged students in 10 countries in the region with access to free-enterprise education that addresses such areas as business, economics, ethics, citizenship, entrepreneurship, financial literacy, and work-life related skills. In addition to providing funding, GE encourages employees to volunteer as mentors throughout Latin America. In 2012, more than 12,300 young students participated in Junior Achievement programs with 744 GE volunteers.

In Mexico, we are driving economic growth and creating new employment opportunities by supplying power to Ethylene XXI, a polyethylene plant complex that is projected to open in 2015. Mexico currently imports more than 80 percent of the polyethylene it uses in manufacturing, packaging, and other commercial and industrial applications. Once in operation, this plant is expected to produce more than one million tons of polyethylene per year, reducing the need to import this plastic material. This will be the first ethylene complex in Mexico and one of the largest on the continent, and it is expected to create 9,000 jobs during construction and another 3,000 direct and indirect jobs once operations commence in 2015.

PUBLIC POLICY & PARTNERSHIPS

Helping build sound public policies and public-private

Latin America has the largest urban population in the world, with more than 80 percent of the population living in urban areas. The region also has one of the fastest growing high motorization rate (number of vehicles per 1,000 inhabitants), growing at 4.5 percent per year. With about 60 percent of the region’s GDP coming from Latin America’s largest 200 cities and a middle class that now represents 30 percent of the population, the demand has never been greater to improve the region’s physical and social infrastructure systems.

INFRASTRUCTUREMuch work has already begun to prepare Brazil for the upcoming marquee global sporting events, including the 2014 World Cup and the 2016 Olympic and Paralympic Games. We see these events as opportunities to build modern and more efficient cities and infrastructure that our region will enjoy for decades to come.

We are already underway in implementing some of our solutions. GE Lighting is paving the way

for greener lighting solutions in Lagoa Rodrigo de Freitas, where we have completed the installation of 450 Light Emitting Diode (LED) fixtures. The LED technology provides energy savings of 50 percent and a 50 percent reduction in annual carbon dioxide emissions compared to previous lighting fixtures. We are also equipping the new headquarters of the Organizing Committee for the 2016 Olympic and Paralympic Games with approximately 3,000 LED fixtures. This will save the Organizing Committee about US$500,000 in energy costs over the four years of operation of the building, compared to fluorescent technology options. We will also light four of the 12 World Cup stadiums in Brazil.

Beyond the Games, we achieved a major milestone in Peru in 2012 to help modernize the country’s obsolete airspace infrastructure to match the capabilities of today’s modern aircraft systems. Through the Green Skies of Peru project, a collaborative effort between GE Aviation, LAN Airlines, and government agencies in Peru, we helped deliver Latin America’s first continuously guided flight from take-off to landing using Performance-Based Navigation (PBN) technology. Deploying a continuous PBN-

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partnerships is critical to the sustainability of our business in the region.

In Argentina, we participated in the annual Argentine Congress of Orthopedics and Traumatology to work on solutions to orthopedic, vascular, urology, and pain management procedures. At this conference, we presented our Brivo OEC 850 mobile surgical C-arm, a high-quality, cost-conscious mobile imaging device. With this device, patients can access surgeries once too costly for them and surgeons can treat more patients throughout the day and work with higher-definition images. Additionally, the device has lower doses of radiation, increasing patient safety. Participating in this kind of convening enables us to share our technologies and engage in a meaningful dialogue with the medical community in Argentina to understand their needs and offer solutions that will ultimately bring greater access to healthcare in Argentina.

Also in Argentina, we are partnering with the American Chamber of Commerce, to foster a level playing field for businesses in the country. Funded by a GE Foundation grant, the goal of this partnership is to create study trips for public and judicial representatives to learn how the concept of rule of law is developed and administered in the United States and how best practices can be replicated in Argentina. The aim is to create a predictable and transparent legal and regulatory environment that stimulates investment, trade and economic growth in

Argentina.

We also support sound public policies thought leadership. In 2012, GE Foundation financed a study by the Brazilian Center for International Relations (CEBRI) on Brazil’s current industrial policy and competitiveness. The report, entitled “Domestic Industry: Development in the Context of the International Crisis: Evaluating Strategies,” is an important contribution to the ongoing debate on how public policy will foster sustainable, economic growth in Brazil. The study analyzes Brazil’s industrial policy in the sectors of oil and gas and healthcare. It also includes a set of recommendations to help Brazil increase its global competitiveness and avoid resorting to protectionism.

LOOKING AHEAD

We will continue our sustainability efforts as an integral component of GE’s business growth in Latin America. We will also develop commitments and goals for the strategic sustainability issues identified at the beginning of this report and establish a governance structure to support the integration of GE Foundation and GE Volunteers activities across the region.

While there is still much work ahead of us, we believe that by pursuing these efforts, we will be recognized as a responsible local partner for the sustainable growth of Latin America.

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GE Latin AmericaPublic Relations and Communications

Director Alexandre Alfredo

Editorial coordination

GE Sustainable Development Latin America Department

Business for Social Responsibility (BSR)

Graphics and Layout

Mill Publicitá

Images – GE Media Central

Printing – VIP graphics and publishing

Print run – 600

Date of publication – 10/10/2013

Contact InformationREGIONAL HEADQUARTERSGeneral Electric do Brasil Ltda.Avenida Magalhães de Castro, nº 4.800, Cidade Jardim - São Paulo - SP+55 (11) 3067 8000

LEAR MORELearn more about GE Citizenship:www.gecitizenship.com

www.gefoundation.com

www.gecitizenship.com/businesses-regions/regions/latin-america

Find detailed news and information onGE and its businesses in Latin America:

Argentina: www.ge.com/arBrazil: www.ge.com/brChile: www.ge.com/clColombia: www.ge.com/coMexico: www.ge.com/mxPeru: www.ge.com/pe

Venezuela: www.ge.com/ve

CORPORATE OMBUDSPERSON To report concerns related to compliance with the law, GE policies, or government contracting requirements, contact our Latin America Global Growth Operations (GGO) Ombudsman, Reyna Torrecillas at:

Reyna TorrecillasChief Compliance Officer Latin America GE Global Growth & Operations

Av. Antonio Dovali Jaime, nº 70Col. Santa Fe, Mexico City, DF01210 Mexico T +52 (55) [email protected]

FEEDBACKYour feedback on GE’s progress is appreciated. Please email comments or questions to: [email protected]