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Public commitments and SDGs OUR COMMITMENTS FOR THE FUTURE
Our materiality and sustainability strategy leads us to relevant public commitments connected to some of the UN's biggest challenges.
Since the formation of Raízen, sustainability has been a fundamental part of our business.
In the 18/19 harvest, we made a great leap in our maturity by developing our Strategic Sustainability Plan and launching our commitments for 2030 because we are aware of the journey we need to take and what impacts we want to generate.
Since we value transparent communication, we publicly commit to our stakeholders and to global sustainable development. To learn more, click here
COMMITMENTS RELATED TO GLOBAL CHALLENGES
We established our commitments to reinforce our responsibility to the sustainability agenda. According to a study conducted by an auditor, these commitments connect to the targets of 14 of the UN's 17 SDGs (Sustainable Development Goals) and assess what is most relevant in the Decade of Action— the approaching deadline for achieving the UN's global commitments.
Aware of the challenge associated with these commitments, in 2020 we issued a call for proposals for startups to help us achieve our goals. Through our innovation hub Pulse, we identified 13 initiatives, some of which are already being tested in our operations and promise to accelerate our journey.
Climate change and energy transition
Reduce the carbon footprint of ethanol and sugar by 10%.
Our goal is to drive the global energy transition. To this end, we seek to reduce our carbon footprint through efficiency and innovation in all our processes, ensuring that the bioproducts offered by the company deliver high emission reduction rates.
Reduce water withdrawal from external sources by 10%*
Raízen seeks excellence in its water management and aims to increase resilience, since water is directly linked to our activities. For this reason, we make conscious and responsible use of this resource, continually seeking to reduce our external withdrawal, improve processes and management, and promote circularity.
- Increase the GJ/ha indicator by 15%.
- Ensure the traceability of 100% of the volume of sugarcane crushed.
Because we are part of the agribusiness sector, we understand the importance of efficient land use that does more with less. It is our duty to perform excellent management of this resource and improve efficiency in our processes. Traceability of the sugarcane’s origin is equally relevant. Having full knowledge about our supply chain is key to ensuring our high standard of sustainability.
- Ensure internationally recognized sustainability programs for sugarcane sources.
- All units in operation must be certified according to an internationally recognized standard.
To ensure that our energy is present in Brazil and in the world, we care for the raw material of our products: sugarcane. We have an integrated platform for risk reduction and value creation composed of the Bonsucro certification and the ELO program. These programs promote sustainable development
Drive advances in the area of human rights in our operations and in our supply chain.
We understand the size of our operations and the complexity of the sectors in which we operate; therefore, we seek to advance in the area of human rights in our operations and to encourage it in our supply chain.
Ethics and Compliance
Actively influence our strategic partners to eliminate risks of violating Raízen's Ethics & Compliance values.
Raízen understands the relevance of this matter and has ethics as one of its non-negotiable values, guiding its actions in all business fronts and recording and disseminating the conduct expected from employees and partners.
Seeing the need to position itself as a true champion of the cause, the company launched a public commitment to ethics and compliance intended to ensure best practices not only internally, but also in a very valuable sector: our strategic partners.
Relationship with the surroundings
Ensure that 100% of the surroundings* are covered by the Raízen foundation.
We conducted a comprehensive study identifying macro trends, benefits, and various benchmarks to understand the impact of Raízen's social performance on its surroundings. Based on this study, we established new long-term positioning: the launch of the commitment to our relationship with the surroundings. This confirms our intent to redefine the future of society through our energy.
Diversity and inclusion
Have 30% of women in leadership positions by 2025.
Since our inception, we have promoted respect and appreciation for diversity in a setting where every point of view counts. We created the commitment to women in senior management positions because we believe that we can generate representation and accelerate the achievement of diverse thinking that produces differentiated results.
FOLLOW THE PROGRESS OF OUR PUBLIC COMMITMENTS UNTIL 2030
Climate change and energy transition
Ethanol 19,59 gCO2/MJ
Sugar 0,293 kgCO2/kg Sugar
Data being audited
Data being audited
- Greater involvement of leadership in this topic through the reporting in the Social Responsibility Committee.
- We ensure annual third-party verification of carbon footprint results.
- The carbon footprint of our products is included as part of the employees' variable pay.
- We joined the CDP Supply Chain to evolve together with our suppliers in managing emissions and climate change risks
- We will continue to act on the main routes to reducing the carbon footprint of our ethanol and sugar: (i) reduction in the use of synthetic fertilizers; (ii) reduced fossil fuel consumption in agricultural operations; (iii) increase in the TCH (ton of cane per hectare) of the sugarcane field; (iv) innovation projects in the agricultural area, such as precision agriculture, which tend to generate savings in the use of inputs and increase productivity.
- We included climate risks in the business risk matrix.
- In 2020, we achieved grade A- (leadership level) in the CDP, demonstrating robust management and strategy on this topic.
- The 20/21 harvest was challenging, particularly due to a long period of drought that had an impact on the quality of the sugarcane. A positive was the historically unprecedented high quantity of ATR.
- On the other hand, since the water used by Raízen comes from sugarcane, this water occurred in smaller quantities, which was also without historical precedent.
- Thanks to the Reduza Program, we were able to keep water withdrawal from external sources during the crushing period at the same level as the previous harvests, even during the drought.
- We have improved the withdrawal system, made some investments in water reuse throughout the process, and closed some of the open circuits; consequently, we expect to see even better results.
- Our proposals for improving the indicator (GJ/ha) are the development of a plan for the expansion of renewable energy and continued investments to increase agricultural productivity. An example of our growth is the 2020 opening of our first plant for the production of biogas using vinasse and filter cake, with 21 MW of installed capacity.
- Sugarcane is the crop that has the highest energy yield per occupied area, and this indicator represents Raízen's efficiency in land use, on an energy basis; in other words, how much energy content the company can extract from sugarcane and its by-products in the same area of cultivation.
- We have made a continuous effort to guarantee this high standard, even in this dynamic sector.
- A premise of our business model is the traceability of the origin of our raw material, even for sugarcane from third-party suppliers.
- The traceability of our raw material allows us to have active participation in our supply chain. This is the case for the ELO Program, which made great progress in 20/21.
94% of our sugarcane sources are covered by internationally recognized sustainability programs
20/23 of our units in operation are certified to an internationally recognized standard
96% of our sugarcane sources are covered by internationally recognized sustainability programs;
22/23 of our plants in operation are certified according to an internationally recognized standard
Technical monitoring of producers:
- We made 3,700+ visits to engage and technically monitor sugarcane producers and share value, encouraging the adoption of best practices.
- We distributed various guidance materials, along with training and updating the ELO team.
- We constantly train and update the ELO team.
- We created a new app, developed in partnership with Solidaridad, to support the ELO team in managing improvement actions.
- In 2019, we certified 20 units with Bonsucro and achieved certification at the Santa Cândida unit, located in the Bocaina-SP region.
- In 2020, we reached 21 Bonsucro certified units and achieved certification at the Paraíso unit, located in the Brotas-SP region.
Engagement of producers through the ELO Program's value proposition:
- We conducted 12 labor law forums in partnership with producer associations and the participation of 318 sugarcane suppliers.
- In the 18/19 harvest, we entered into a partnership with SENAR and other institutions to conduct training courses for suppliers' employees, totaling 60 classes.
- In the 18/19 harvest, we promoted six itinerant pick-ups of agrochemical containers in places that were far from authorized collection sites.
- In the 20/21 harvest, we launched the 1st Annual Report of the ELO Program, showing the main impacts of the program in the field.
- We are constantly seeking partnerships that will increase the program's reach and take best practices to other producers in the sector.
Several actions were implemented to maintain our certifications, such as:
- Environmental Management Plan (PGA - Plano de Gestão Ambiental), with actions to reduce possible impacts and manage natural resources.
- Availability and extensive disclosure of an open communication channel (SAC) for questions, complaints, suggestions, and compliments because we understand the importance of people's involvement for the proper execution of activities.
- Initiatives that made it possible to demonstrate compliance with the indicators established by Bonsucro and concerns with the sugarcane production chain.
- Since 2018, we have been signatories to the Business Pact Against the Sexual Exploitation of Children and Adolescents on Brazilian Highways, proposed by Childhood Brasil and the Ethos Institute.
- In 2019 and 2020, we implemented internal and external actions to raise awareness on the topic and engage the value chain in the fight against sexual exploitation of children and adolescents by adhering to the Business Pact Against Sexual Exploitation of Children and Adolescents on Brazilian Roadways, proposed by Childhood Brasil and the Ethos Institute.
- One of our guidelines is to uphold the protection of the rights of Indigenous communities, and we strictly follow the policy of not acquiring sugarcane from suppliers in areas declared Indigenous.
- Through the Parceiro Raíz Award, we stimulate and recognize good practices related to this topic in our supply chain.
- We evaluate all our procurement categories (which include more than 4,000 suppliers) based on social and environmental criteria and classify them in a criticality matrix. In this way, we improve our management of risks and opportunities.
- We implemented the Sustainable Procurement Policy, which includes guidelines on human rights, and we will go further in the next harvests by developing specific guidelines for each procurement category.
- We created the Employee Assistance Program, which includes psychological assistance, legal guidance, financial consulting, social services, and livestreaming with specialists in mental and financial health.
- We are concerned with the wellbeing and safety of our employees during the pandemic, so we implemented measures such as the inclusion of specific life insurance coverage and the donation of baskets of staple products.
Ethics and Compliance
- We mapped compliance risks across the entire company, together with an independent consulting firm.
- We reviewed Raízen's Integrity policy, and with the objective of influencing our supply chain, we disseminated it to our suppliers.
- We developed and implemented an Integrity Audit for service providers.
Relationship with the surroundings
7/104 surroundings• covered by the foundation
7/106 surroundings• covered by the foundation.
- In 2018, the Raízen Foundation revised its operating model and started a pilot class for a new educational approach that encourages the development of socioemotional skills and permanence in school. The program is aimed at 9th grade students and lasts for 12 months. This change made it possible to increase the number of young people benefited.
- In 2019, we expanded the program to 5 branches of the Raízen Foundation.
- In the 19/20 harvest, we reached the highest number of young people assisted since the Raízen Foundation revised its operating model and started the pilot class for a new educational approach that encourages the development of socioemotional skills and permanence in school.
- In 2020, during the pandemic, the methodology was adapted to a remote model. The positive results obtained made it possible to develop a program using the same principles in a hybrid model. This change enabled our ambition to reach a larger number of locations.
- Also in 2020, the Raízen Foundation revised its program aimed at children.
- In 2021, in line with the Raízen Foundation's strategy—which involves the affective relationship with children and young people, the family, and the school and the contribution to reducing school drop-outs in Brazil—we have committed to be present in 100% of the areas surrounding* our operations by 2030, expanding our ties with the community and generating a positive social impact.
*surroundings = third party operations at Refueling Points at Airports are not considered.
Diversity and inclusion
14% of leadership positions are held by women*
19% of leadership positions are held by women*
- Since we believe in the importance of open dialogue, we have created listening sessions with women's groups.
- We established a gender/women’s seat on the Diversity and Inclusion Committee and linked in groups within the company that worked on the proposal.
- We pushed our hiring funnels to make sure the recruitment and selection process includes at least 30% women.
* Leadership positions are considered Coordinator and above