developing promoting improving presentation about amaggi
TRANSCRIPT
At AMAGGI, we believe that our strength lies in taking responsibility for the challenges, in an attitude of protagonist. 2018 has brought us many obstacles and opportunities, and that is exactly what moves us.
We have a great harmony between business and sustainability, since it permeates everything we do. With an integrated management structure and work flowing across the different areas, sustainability goes through all our decision-making process in a strategic way.
By means of our Global Sustainability Positioning, we were able to give clarity to AMAGGI’s sustainability strategy, unifying our socio-environmental performance and reinforcing the commitments and actions stipulated by the company. Since 2009 we have been a signatory to the United Nations Global Compact, and since 2015 we have contributed to the UN Sustainable Development Goals, working on topics related to our Global Positioning.
This is an abbreviated version of our 2018 Sustainability Report. We invite everyone to view the full version on our website.
Good reading!Judiney Carvalho de Souza
CEO | AMAGGI
Having been operating for 41 years through four business areas - Agro, Commodities, Logistics and Operations, and Energy - AMAGGI is present in an integrated and synergistic way throughout the agribusiness chain: from the origination and commercialization of grains and inputs, passing through by port operations, river transportation, agricultural production, up to the generation and sale of electric energy.
In addition to the solidity and performance of its business, AMAGGI has a Private Social Investment Policy (ISP), through which it repasses financial resources so that the André and Lucia Maggi Foundation can manage its projects.
Presentation About AMAGGI
REPORT
/grupoandremaggi/Amaggi.Brasil /amaggiwww.amaggi.com.br
To learn more about the actions developed by AMAGGI, in each strategic block of Global Positioning for Sustainability, access the full report on the website: amaggi.com.br/relatorio2018
Boa Vista
Rio Verde
Barcarena
Distrito deMirituba
Querência Gurupi
Porto Nacional
GuaraíTasso Fragoso
Nova Santa Rosa
Bom Jesus
Luís Eduardo Magalhães
Correntina
Guarujá
Paranaguá
São Francisco do Sul
Maringá
Passo Fundo
Rio Grande
Santos
Balsas
São Luís
Lucasdo Rio Verde
Cuiabá
Porto Velho
Ariquemes
VilhenaSinop
Cerejeiras
Sapezal
Itaituba
Manaus
Madeira River
A
S
B
PC
D
E
F
G
H
I
J
K
Q LM
T
O
NR
U
Itiquira
Comodoro
Rondonópolis
Tapajós River
Amazonas River
Itacoatiara
Paragominas
Colinas
Brasnorte
Diamantino
Ipiranga do Norte
Matupá
Novo Horizonte
Nova Mutum
Nova Ubiratã
Paranatinga
Primavera do Leste
Santa Rita do Trivelato
São José do Xingu
Tapurah
Vera
A
B
C
D
E
F
G
H
I
J
K
L
M
Campo Novo do Parecis
São Félix do AraguaiaO
N
Água Boa
Confresa
Tangará da Serra
S
T
R
Campos de Júlio/AGDP
SorrisoQ
Commercial Office
Farm
Warehouse
Port Terminal
Plant
Headquarters
Shipyard
Joint Venture
Fluvial Corridor
Fluvial Corridor Joint Venture
ISO 14001 Certification
Small Hydroelectric Power
Highway
Railroad
2018 Highlights
5 small hydroelectric plants, located in Mato Grosso,
with a total installed capacity of 70 MW, at
AMAGGI Energia.
27% increase in soybean seed yield, 8% in soybean,
and 4% in cotton, compared to the previous harvest, at AMAGGI Agro.
Acquisition of own fleet of 300 trucks, capable of transporting up to 49.5 tons of grain each one.
Growth of 8% in the commercialization of chemical inputs, 6%
in fertilizers and 2% in soybean and corn seeds, at AMAGGI Commodities.
Highlighted as one of the 5 most sustainable
agribusiness companies, in
the Guia Exame de Sustentabilidade 2018.
4.7 million tons of grain transported in
the Madeira Corridor, by AMAGGI Logística e
Operações.
US$ 4.74 billion of annual revenue.
ImprovingTHE GOVERNANCE AND MANAGEMENT
PromotingA SUSTAINABLE VALUE CHAIN
RISK MANAGEMENT AND COMPLIANCE
In 2018, AMAGGI’s risk agenda underwent a structural review as part of the implementation of the company’s Compliance / Integrity Program. Thus, the Corporate Risk Management Policy published in 2015 was updated and renamed as Global Risk Management Policy. The company also published its Integrity Policy, which reinforced integrity as the value and standard of expected behavior of the company’s employees and business partners.
In 2018, 70% of the staff, 80% of the managers and 100% of the members of the governance body were trained to apply the standards of the Integrity Policy and the Company’s Code of Ethics and Conduct.
PARTNERSHIPS
In addition to the actions and projects developed directly by the André and Lucia Maggi Foundation, AMAGGI invests in partnerships with institutions for collective construction of the development of municipalities and responsible agribusiness. AMAGGI understands that together we can take greater steps, so the company has participated in various forums, discussions and initiatives with regional or even sectoral approaches to social, environmental and economic questions.
One example is the Mato Grosso State Strategy: Producing, Conserving and Including (PCI) and GTC (Cerrado Working Group). Specific partnerships with ONGs are also part of AMAGGI’s activities, such as the project with The Nature Conservancy (TNC), the Amazon Environmental Research Institute (IPAM) and Earth Innovation, through the Balikpapan Challenge. AMAGGI also adhered to several voluntary institutional commitments to reinforce the responsibility of its performance and goals.
SUPPLIERS RESPONSIBLE MANAGEMENT
At AMAGGI, all supply contracts have specific clauses regarding respect for human rights, such as the non-exploitation of child labor, degrading or similar to slavery, as well as a specific anti-corruption clause and clauses on labor and social security obligations. The criteria and description of the required documentation requested for each type of product or service contracted by AMAGGI are publicly available on the company’s website.
SOCIO-ENVIRONMENTAL MANAGEMENT
It is mainly through its Social and Environmental Policy that AMAGGI reaffirms the commitment to act in a socially fair, environmentally responsible and economically viable way.
Annually, internal audits are carried out to verify compliance with the requirements of the AMAGGI Socio-Environmental Management (GSA). In 2018, audits were carried out in 25 units in-person, including farms, factories, ports, shipyards and PCHs. In a remote way, 34 units, between warehouses and offices, participated in the audit process.
In 2018, all AMAGGI socio-environmental certifications were renewed (ISO 14001: 2015, A.R.S., RTRS and ProTerra), through a third-party audit. In addition, the Responsible Brazilian Cotton (ABR) and the Better Cotton Initiative (BCI) certification for the 2017/2018 harvest were added to the AMAGGI Socio-Environmental Management (GSA), on cotton producing farms (Água Quente, Tucunaré and Itamarati). In 2018, 100% of the bales of cotton produced by AMAGGI received the ABR/BCI seal.
RESPONSIBLE LOGISTICS PROGRAM
Since 2012 AMAGGI has developed actions with its transport suppliers with the main objective of minimizing the social, environmental and economic impacts of road and river transport of its products.
In 2018, among the main actions carried out, the research on the profile of agribusiness drivers on the Parecis-Porto Velho route (Mato Grosso - Rondônia, federal highway BR-364), in partnership with the Childhood Brazil – Na Mão Certa Program. It has made it possible to better understand the social characteristics, habits and customs of this public, and to reveal their perception of the strengths and points of improvement in relation to AMAGGI. A total of 180 truck drivers participated in the survey.
Through the program, 19 stretches of BR 364 and BR 163 (highways) were mapped with the highest number of accidents in the period from 2014 to 2018, according to AMAGGI’s historical data. These numbers were used in the creation of accidentality maps to sensitize truck drivers.
DevelopingWITH COMMUNITIES
Soy flower (Glycine max)
SUMMARIZED VERSION
482 people from 26 municipalities trained
by the Transformar Project.
Approval of Conformity in the Soy Moratorium and Green
Grain Protocol through external audit.
Awardedby the company Monsoy,
due to its performance along the supply chain
and use of the ORIGINAR platform.
Engagement Research:
more than 40 action plans and more than 200 actions of diversified improvements
in all areas of business.
improving the governance and management
promoting a sustainable value chain
developing with communities
debating the present and the future
1,960
par
ticip
ants
of t
he A
MA
GG
I Tec
hnol
ogy
Circuit i
n the states of Mato Grosso and Rondônia.
GEE invento
ry: S
cope
1: -4
% |S
cope
2: -
9%
| S
cope
3: +
10%
| Bio
geni
c em
issio
ns: -4
4% | Biogenic removals: -24%.
Conduc
t res
earc
h o
n th
e pr
ofile
of a
grib
usiness drivers on the Parecis-Porto Velho route.
AB
R c
ertif
icatio
n and BCI licensing in the 17/18 harvest.
HIGHLIGHTS BY
STRATEGIC
BLOCK
Launched in 2017, Global Positioning for Sustainability aims to clarify AMAGGI’s sustainability strategy, keeping it aligned with its Mission, Vision and Values and business plan.
From the Positioning, the Sustainability Plan with Vision until 2025 was created, which integrates sustainability management into the company’s business strategies for the coming years, addressing the most relevant issues related to AMAGGI sustainable development (for more information see platform online http://amaggi.com.br/posicionamentoglobaldesustentabilidade).
In this summary version of the report, some of AMAGGI’s main actions developed in 2018 are highlighted, correlated to each strategic block.
Global Sustainability Positioning and 2025 Plan
2025 Plan
PEOPLE MANAGEMENT
With a staff of 5,754 own employees and 744 outsourced, AMAGGI values a safe and healthy work environment. An example of investment in this area is the Behavioral Safety Program, which has contributed to significantly reduce the rate of occupational accident frequency. In the units where it is implemented, the company obtained reductions in the percentage of the frequency rate of 35.82% in 2016; 15.57% in 2017; and 7.65% in 2018.
It also invests in actions focused on the organizational, professional and personal development of employees.
Next are some 2018 highlights:
ASSESSMENT
224 employeeshad the opportunity to broaden their self-knowledge and reflect on their future goals and current career challenges.
1.960 peopleparticipated in the AMAGGI Technology Circuit, which provided knowledge and
solutions to 617 rural producers in the states of
Mato Grosso and Rondônia, representing more than 1.6 million hectares of planting
area in both states.
482 people from 26 municipalities were trained by the Transformar
Project of the André and Lucia Maggi Foundation.
RT13 Participated and sponsored
the Annual Conference of the International Association of
Responsible Soy (RTRS), RT13, held in France.
Cerrado Working Group (GTC)Assumed one of the coordination of the group and participated in plenary and technical meetings to create strategies to eliminate
deforestation of the cerrado (savannah), connected to the soybean chain, balancing social, environmental and economic issues.
Responsible Grain Origination
In 2018 the company certified 468 rural properties in
standards requiring zero deforestation.
451 people involved in the Potencializa
Project, of local development in network, in Lucas do Rio Verde
and Querência.
Through the Socioenvironmental
Education Program (PESA), AMAGGI trained
24 teachers from the Argeu Augusto de Moraes State School,
belonging to Itamarati Farm, in Environmental Education.
Participation of 110 young people, in the Casa Maggica
Project in Rondonópolis, and 93 in Cuiabá, who could
participate in activities focused on art, music and dance to work on values
such as integrity,
commitment,
respect and
humility.
LEADERSHIP SCHOOL
There were 599 participation of leaders in
47 classes, in the 7 modules offered.
YOUNG APPRENTICE PROGRAM
20% of the young apprentices were contracted
by AMAGGI.
FINANCIAL BALANCE PROGRAM
733 employees and family
members were taught guidelines on the subject of financial
education.
70% of the staff, 80% of the managers and 100% of the members of the governance body trained to apply the standards of the
Integrity Policy and the Company’s Code of Ethics and Conduct.
Partnership with TNC, IPAM and Earth Innovation in socio-environmental projects and initiatives.
Collaboration in the publication of “2030-2050 Vision, the future of forests and agriculture in Brazil”, within the framework of the Forum on
deforestation, of the Coalition Brazil Climate, Forests and Agriculture.
DebatingTHE PRESENT AND THE FUTURE
AMAGGI Responsible Standard (A.R.S.)
415 thousand tons
ProTerra Standardapproximately
1,1 million tons
Round Table on Responsible Soy (RTRS)
485k in credits1
236k tons physical
112k tons physical EU RED
1 Each credit equals 1 ton of certified soy.
RESPONSIBLE PURCHASE OF GRAINS
AMAGGI evaluates its grain suppliers based on socio-environmental criteria, which are principles of sustainability to be met. With a chain of approximately 4,000 thousand rural producers, 100% of them must meet these criteria. Suppliers with some restrictions have their registration blocked, until they regularize their situation or prove that there are no irregularities. The socio-environmental assessments of these suppliers that offer risks are carried out through the ORIGINAR tool, a geospatial platform, where the company analyzes in a more precise and detailed manner the areas with which it commercializes.
In 2018, an external audit was carried out for the first time in Pará, due to the beginning of its operations, to ensure compliance with the Green Grain Protocol commitment, where AMAGGI was successful in the result achieved. The company also ensured 100% compliance with the requirements of the Soy Moratorium, and no non-compliance in external audit was identified.
Another way to confirm its commitment to responsible production is through certifications, ensuring that socio-environmental and quality criteria are met, not only in its internal processes, but also in its production chain.
TOTAL SOYBEAN VOLUME CERTIFIED IN 2018
LOCAL DEVELOPMENT
There are several forms of contribution of AMAGGI to the regions where it is present, including the offer of jobs with a fair and decent wage, the movement of the local economy through the acquisition of goods and services, the collection of taxes for the municipalities, generation of income for local producers, dissemination of knowledge, among others.
PROTECTION AND RECOVERY OF AREAS
AMAGGI maintains more than 141 thousand hectares of properly protected areas of native vegetation, as well as the recovery of Permanent Preservation Areas on its own farms.
The company also carries out direct and continuous orientation work for rural producers regarding compliance with legal requirements, such as the Forest Code, responsible working conditions, good agricultural practices and recovery of degraded areas. This guidance contributes to the maintenance of the socioenvironmental certifications achieved by the producers, as well as for the promotion of an increasingly responsible supply chain.
CLIMATE CHANGES
AMAGGI has continuously improved the quality of its greenhouse gases inventory, which is already one of the most comprehensive in the agricultural sector. A novelty in 2018 was the new accounting approach of Scope 2, which followed the new methodology of the Brazilian GHG Protocol Program, based on the choice of purchase (Market Based). This methodology allows to recognize corporations that opt to acquire energy from sustainable sources and are able to track this consumption.
Another highlight of the year was the maintenance of more than 141,000 hectares of permanent preservation areas, legal reserves and forest surpluses, which together represented about 76 million tCO
2e stocked.
This is one of the results of the compromise that AMAGGI maintains with the promotion of responsible agriculture.
It is worth mentioning that the company also calculates its carbon footprint for soy and corn, aiming to deliver a product with the lowest possible emission to its customers. For 2019, a new update of this calculation is foreseen.
Details and justifications for variations of each scope (1, 2 and 3) as well as biogenic emissions and removals can be found in the full version of the report.
REDUCTION OF REDUCTION OF INCREASE OF REDUCTION OF REDUCTION OF
TOWARDS A DEFORESTATION-FREE CHAIN
A milestone in the demonstration of AMAGGI’s commitment for combating deforestation was adherence to the Soy Moratorium in 2006, banning from its supply chain all soybeans produced in deforested areas after 2008, in the Amazon biome. In 2007 it has become a member of the RTRS board, position it holds up to today, as well as becoming the first company to be certified by the RTRS. Thus, with this performance and also with the ProTerra certification, AMAGGI is currently the company with the highest volume of certified zero-deforestation soy in the world.
Among the main actions and initiatives carried out in 2018 by AMAGGI, in favor of a free chain of deforestation, some are:
MAIN RESULTS OF THE GEE INVENTORY (2017X2018)
Scope 1
4% 9% 10% 44% 24%
Scope 2 Scope 3Biogenic
emissions Biogenic removals
Soy Moratorium
One more year guaranteeing the fulfillment of the requirements of this commitment, with no
non-conformity identified in external audit.
Brazil, Climate, Forests and Agriculture Coalition Through the Coalition Dialogue
Forums, AMAGGI contributed to the publication “2030 -2050 Vision, the future of forests and
agriculture in Brazil”.
In addition, through the André and Lucia Maggi Foundation (FALM), responsible for the management of AMAGGI’s Private Social Investment (ISP), several developed projects contribute to the development of institutions and people in the municipalities where the company operates.
Improving the governance and
management
Promoting a sustainable value chain
Developing with
communities
Debating the present and
the future
Total soybean volume certified in 2018: A.R.S.: 415 thousand tons | ProTerra Standard: 1.1 million tons | RTRS: 485k in credits
– 236k tons physical – 112k tons physical EU RED.