Since it was founded, Algar Agro has believed it is possible to grow sustainably and to involve all its network of relationships in practices which contribute to a better world. The same conviction is shared by all companies within Grupo Algar, which is a signatory of the Global Pact – an iniciative developed by the UN (United Nations) to mobilize the corporate community to adopt values in the areas of human rights, labour relations, environment and fight against corruption.
At Algar Agro these values are implemented through two complementary programs: environmental and educational.
Algar Agro is proud to produce healthy foods, according to most stringent international norms, and to respect the environment. This attitude leads to constant challenges to develop sustainable practices to diminish the environmental footprint of the business.
The Company is aware that climate change is due mostly to the emission of greenhouse gases, which can affect agricultural activities and the Company’s business. Concerning its most important raw material, soybean, there is a direct influence over productivity and price. The Company is working to reduce its greenhouse gas emissions, adopting sustainable processes which allow, for example, to cut diesel consumption in its generators, lower the use of fuel oil in its boilers, burning biomass to heat boilers, and cutting the consumption of electricity. As a signatory of the Soya Moratorium, the company has undertaken not to commercialize soybean which originates in areas of the Amazon which were deforested after the signature of the pact.
To spread an environmentally-conscious culture the engagement of associates is fundamental. Algar Agro encourages new ideas and the development of projects which can fine-tune all their processes. The Company’s objective is to obtain all the environmental certifications, as well as those relative to quality and health and safety, pertaining to its business area.
Another pillar of sustainability policy is to encourage environmentally conscious attitudes amongst producers. Since 2011 an audit has started to validate producers’ good environmental practice . The Dia de Campo program also is aimed at disseminating and encouraging the adoption of good practices.
In 2011 Algar Agros activities generated 1,482,589 tons of materials, among which were grains (1,306,552 t) raw materials (1807 t) packaging (174,231 t) including polyethylene film, PET bottles, 900ml and 9 liter tins, labels, cardboard boxes, sacks for soybean meal and soybeans. The volume increased by 17.7% in the year, from 1,259,286 tons in 2010, due to an increase in the Company’s operations.
Algar Agro invests constantly in research to lower the environmentalk footprint of packaging. It was the pioneer in adopting 17.5 gram PET bottles for soybean oil. The previous packaging, still used by other players in the market , weighs 20 grams.
With the adoption of the National Policy of Solid Waste, Algar Agro's target, in partnership with its suppliers, is to implant a reverse logistics plan for its packaging. Another challenge for the Company is to increase the use of recycled materials, which are already used in the cardboard boxes.
The Company’s energy management model aspires to generate wealth for the country using as little energy as possible. Algar Agro has upgraded some of its motors, adopting high-performance equipment. The lighting systems at Uberlândia and Porto Franco units have also been upgraded. The reduction in energy consumed has allowed the Company to reach its 2011 consumption target of 30kWh/ton of received soybean. For 2012 the objective it to maintain the same energy comsumption/ton.
| Indirect energy Consumption, by source: | |||
|---|---|---|---|
| 2009 | 2010 | 2011 | |
| Non-renewable | |||
Electricity |
0 | 0 | 0 |
Heating |
0 | 0 | 0 |
Steam |
0 | 0 | 0 |
Nuclear |
0 | 0 | 0 |
Other forms of imported energy |
0 | 0 | 0 |
| Renewable | |||
Solar |
0 | 0 | 0 |
Wind |
0 | 0 | 0 |
Geothermal |
0 | 0 | 0 |
Hydroelectric (GJ) |
134,954 | 129,212 | 143,229 |
Biomass internmediate energy |
0 | 0 | 0 |
Hydrogen intermediate Energy |
0 | 0 | 0 |
| Total | 134,954 | 129,212 | 143,229 |
| Non-renewable energy (GJ) | |||
|---|---|---|---|
| 2009 | 2010 | 2011 | |
| Diesel | 16.724 | 15.273 | 12.305 |
| Fuel Oil | 997 | 830 | 777 |
| LPG | 1 | 1 | 1 |
| Total | 17.721 | 16.104 | 13.083 |
| Renewable energy (GJ) | |||
|---|---|---|---|
| 2009 | 2010 | 2011 | |
| Wood | 79 | 62 | 102 |
| Wood chip | 0 | 15 | 474 |
| Sugar cane waste | 400 | 46,094 | 49,682 |
| Total | 479 | 46,171 | 50,258 |
Greenhouse gas emissions
In 2011, Algar Agro cut its emissions of CO2 by 28.8%, from 26,263 tons in 2010 to 18.697 tons. The target was for a 10% reduction.
| Direct Emissions (tonCO2eq) | ||
|---|---|---|
| Source | 2011 | 2010 |
| Electricity, steam or heat generation (EN3) | 16,846 | 23,974 |
| Other combustion processes | 752 | 614 |
| Chemical processes | 1 | 1 |
| Transport of material, products or waste | - | - |
| Opening of vents | - | - |
| Escaping emissions | 0 | 0 |
| Indirect Emissions | ||
|---|---|---|
| Source | 2011 | 2010 |
| Consumption of acquired electricity | 1,034 | 1,603 |
| Total of direct and indirect emissions | 18,697 | 26,263 |
Apart from the direct emissions detailed, Algar Agro generated 64.8 tCO²eq in 2011, due to commecial airline flights. The volume of indirect emissions is only 0.37% of the volume of direct emissions.
Therefore, Algar Agro’s target for greenhouse gas cuts are emissions generated by stationary sources. For this, one of the most audatious projects, which won the Algar de Inovação award in 2010, has been to change energy matrix at the Uberlândia/MG unit. Substitution of fossil fuel (fuel oil) by sugarcane bagasse started in 2008. Emissions were cut by 46% in 2010 and by a further 11% in 2011.
The next step is to iniciate the process at the Porto France/MA unit where the best renewable energy source has proven to be wood. In the first stage, Algar Agro has planted 6000 hectares with eucaliptus, which will be used to fire the boilers with a cut of 80% in CO² emissions. With this and other actions which are part of the daily activities of the Company, Algar Agro will have the first green refinery in the country.
Consumption of diesel was cut by 9% in 2010 and by 5% in 2011, or 14% in two years, due to the change in the the use of two electric generators used in Maranhão. As the measurement of greenhouse gas emissions only began in 2010, no comparison was possible between the years of 2009 and 2010, a year in which the reduction in CO² emissions was significant, reaching 46%.
| Initiatives to cut greenhouse gas emissions and results obtained. | |||
|---|---|---|---|
| Action | Reduction | Location of action | Year |
| Reduce the volume of fuel oil used in the steam generation for sya processing | 46% | Fábrica Uberlândia | 2010 |
| Reduce the volume of fuel oil used in the steam generation for sya processing | 11% | Fábrica Uberlândia | 2011 |
| Reduce consumption of diesel | 9% | Uberlândia e Filiais | 2010 |
| Reduce consumption of diesel | 5% | Uberlândia e Filiais | 2011 |
| Total Cuts (2011 over 2010) | 7,551 tons of CO2e -28.76% | ||
Significant spillages, fines and other sanctions
In 2011 there were no significant spillages at Algar Agro, but the Company will implant a mutual help program in 2012 to support other companies in the Uberlândia Industrial District with equipment, personnel and knowledge of the Emergency Service Brigade which was set up in the Company in 1996. In 2011 the Company was not fined or sanctioned for breaking any environmental law or regulation.
Algar Agro analyses all raw materials which enter the two units, as well as the quality of the inputs used in production processes. Since 2005, risk management focussed on food safety conforms with the rules and procedures applied in Brazil and internationally, such as the Codex Alimentarius and the GMP Quality Control of Feed Materials.
The company has certification of 100% for soybean meal and ABC de Minas soybean oil. Though they do not yet have certifications, all the other products’ suppliers are audited by Algar Agro. The products’ life cycles are also analysed for health and safety impacts and to seek improvements in: (i)warehousing, distribution and supply; (ii) marketing and promotions; (iii) disposal, reuse and recycling. Concerning the latter, the Company has no information concerning consumers’ recycling of their products. This analysis presents a challenge which is being tackled by the Associação Brasileira das Indústrias de Óleos Vegetais (Abiove), in conformity with the National Policy of Solid Waste.
Algar Agro has a modern quality control laboratory and professionals with more than 30 years of experience. It also uses laboratories that are certified by the Ministry of Agriculture, which allows certification of products according to the norms of the National Sanitary Inspection Agency (ANVISA), the ministry of Agriculture, and the National Quality and Standards Agency Inmetro. The latter two analyse periodically the company products.
During 2011 there were only 2 cases of non-conformity, relating to the 900ml oil tins, which resulted in a fine of R$ 4739.00. The Company only considers significant those fines above the value of R$ 5000. However, more important than monetary values is our commitment with society, therefore we relate the problem and measures adopted. An internal inquiry concluded that a microseepage occurred during transportation. As they were isolated cases, no product recall was necessary.
Concerning labelling, Algar Agro follows all the rules concerning the nutrition facts relating to the product. It has operational procedures and a team specialised in label analysis, which supplies all the information to the corresponding regulatory and inspection organs. There were no cases of non-conformity with regulations and volutary codes related to information and labelling during the past year. In 2012 the company aims to establish procedures, in line with the National Policy of Solid Waste, to increase public awareness on the impact of soybean oil in water, when not disposed of in the proper way for recycling.
The same concern guides beef and dairy cattle farming activities in farms in Mato Grosso do Sul and in the Triângulo Mineiro Region. To guarantee the quality of products taken to market, the Company adopts practices which respect the principles implicit in the regulatory organs’ manuals.
For 2012, Algar Agro’s aim is to gain certification for part of the cattle production, so that one of the farms becomes part of the select group on the TRACE list of Approved Rural Establishments which are permitted to sell freely to the countries in the European Union. Such establishments have to be approved by the Brazilian Bovine and Buffalo Certification Sistem (sisbov) under under the rules of the Ministério da Agricultura Pecuária e Abastecimento (Ministry of Agriculture Cattle and Food Supply).
In its commitment to service quality the Company also takes into account customer satisfaction. Algar Agro conducts annually a customer satisfaction survey for retail, soybean meal and origination clients in all States. The survey analyses satisfaction with sales, logistics, financial services, the performance of the client relationship center, and the Company’s institutional image. The results of the 2011 survey will be released in february and will guide actions taken in 2012.
There were no significant fines concerning product quality. The company considers as significant only those fines equal or higher than 5% of sales. However, the Company considers its commitment to clients and community more important than the value of a fine, therefore all infractions should be disclosed independently of the value of the fine. The result is the fruit of the Company’s commitment in always seeking the ‘fair profit’, investing continually in training and equipment, assuring the products are of high quality, are in conformity with legislation and do not cause any harm to society.
The Company is against any sort of discrimination and adopts every measure to avoid this sort of behaviour in its business. The Associates Committee considers preventive and corrective actions and, in the case of irregularities, sets up an inquiry with the help of the Law department and Human Talents.
During 2011 there were no cases of discrimination registered at Algar Agro. There were no actions which put at risk or threatened the liberty of association and collective bargaining and the Company did not receive any significatn fines or sanctions resulting of non-compliance with laws and regulations. However in the interest of transparency of information the Company declares the amount of R$ 34,000 in labour-related fines in the period.
The Grupo Algar Code of Conduct stipulates that suppliers and partners should not use slave or child labour and there are no operations identified as being at risk of employing minors. During 2011 there were no incidents of child or slave labour and no cases of violation of indians’ rights.
To reinforce the policy of Human Rights All contracts signed with clients and suppliers have clauses stipulating that no minors may be employed except as apprentices and no apprentices to be employed in insalubrious conditions or such conditions as may cause damage to health. The contracts also have clauses concerning slave labour and work in conditions similar to slavery. The company also consults the “Slave Labour List”, published by the Labour and Employment Ministry, before all soybean purchases.
Algar Agro, and all companies in Grupo Algar, consider education as an efficient means to guarantee sustainability for future generations. Therefore, all sustainability projects focus on human potential development and are widely disseminated. Internal programs of environmental and citizenship education are disseminated though an environmental communication portal for associates. UniAlgar’s Distance Learning platform (EaD) is also an important means of transmitting information.
The educational investment in the community, in turn, are pursued through the Institute Algar, a Civil Society Organization of Public Interest (Oscip) that receives donations from all businesses of the Algar Group. In 2011, Algar Agro contributed with R$ 415,000.
The resources were used in projects partnered with 108 public schools in 11 towns in 4 States (São Paulo, Minas Gerais, Goiás and Maranhão), involving 500 teachers and 10 thousand students. In the regions where Algar Agro is active , mostly in the North and Northeast, the work of the institute is very relevant, with almostt 100% of schools invited willing to join the program. Company associates are also motivated to participate as volunteers in activities targeting reading and writing skills as well as digital inclusion. top