Business partners |GRI 102-9, 103-2|
Committed to investing significantly in practices that benefit our sugarcane suppliers and strengthen our relationship with them, since the previous crop year, we have been developing a new position for Programa Cultivar (Cultivate Program).
Unprecedented in the sugar and ethanol industry, the initiative offers innovations that enable better results ─ in both productivity and profitability ─ through technologies and tools that are revolutionizing the business of our sugarcane suppliers.
Among the available tools are Academia de Produtividade (Productivity Academy), which promotes the sharing of experiences about agricultural techniques in order to maximize productivity; and Agricultural Support, which allows producers to obtain an agricultural recommendation through the collection and analysis of their soil. This front also provided technology for Integrated Pest Monitoring (MIP - Monitoramento Integrado de Pragas).
The program also provides access to initiatives intended for multiplication of financial benefits, business management, and development of the agro-businessman. In addition to extending the partnership with the Getulio Vargas Foundation (FGV) for the regions of Bauru (SP) and Jataí (GO), the program now includes Fórum de Sucessores (Successors Forum), which mobilizes partner successors in the development and improvement of their skills for the sugarcane business.
The program has a unique and innovative platform that focuses on developing producers. By offering a portfolio of benefits and services to support agricultural advancement and the business environment, we take an important step towards continuously creating shared value in our chain.
Another program dedicated especially to sugarcane producers is ELO, carried out in partnership with two internationally recognized institutions ─ Imaflora and Solidaridad ─ which seeks to involve the public in initiatives related to economic sustainability, environmental responsibility, and respect for human and worker’s rights.
Participants are evaluated and classified according to the level of performance in environmental, social, and economic indicators. On the social pillar, topics such as work hours, worker assistance infrastructure, minimum hiring age, safe use of agrochemicals, remuneration conditions, accommodations, and transportation are included. In economic indicators, the right to land use and lease and partnership agreements are analyzed. On the environmental pillar, the efficient use of natural resources is the main issue addressed with suppliers.
Practices such as the use of selective insecticides and the use of biological control, for example, are checked by sustainability managers during visits to the farms. The ELO team also assesses compliance with standards that regulate Permanent Preservation Areas (PPAs), Legal Reserves, and illegal deforestation.
After classification, each supplier receives an action plan with priorities for improving their performance. Monitoring is carried out periodically by a team dedicated exclusively to the project and, after mapping the demands in the field, they conduct, among other activities, training, technical visits, and business contacts, in partnership with regional associations, whose role is to assist producers in various aspects: technical, legal, management, etc.
Currently, 2,000 producers participate in the ELO Program, which is 89% of the total number of suppliers and 99% of the volume of third-party sugarcane.* However, the impacted audience is even greater when considering the regional population that is indirectly benefited, since the production creates job opportunities and is responsible for contributing to the economic and social development of those cities.
* Data does not include spot sales of sugarcane.
Since the launch, in 2014/2015, significant results have been identified regarding the use of best practices, such as adequacy of processes regarding the workers, storage and disposal of chemicals and packaging, and the use and handling of agrochemicals.
The synergy between the ELO Program and initiatives by associations of sugarcane producers increases engagement and adoption of sustainable practices in the sugar and ethanol chain. In this sense, we can highlight actions promoted with two associations affiliated with the Sugarcane Planters Organization of the Central-Southern Region of Brazil (ORPLANA):
Top Cana Project | In partnership with the Sugarcane Suppliers Association of Guariba (SOCICANA), in the State of São Paulo, visits were made to 120 associated producers, of which nearly 50 also participate in the ELO Program.
Muda Cana Pilot Project | The Sugarcane Suppliers Association of the Western Paulista Region (AFCOP) supports its associates, most of which supply sugarcane to our units. Started in pilot mode in 2017, it has already offered training on Health and Safety and other topics.
We are one of Brazil’s main fuel distributors, a position gained and maintained thanks to the work of committed partners, with whom we establish performance standards and develop initiatives to preserve the safety of the professionals involved in these operations.
About 4,000 drivers from companies that provide service to us drive 3,300 trucks on roads and highways throughout the country. This fleet travels approximately 250 million kilometers a year, equivalent to 500,000 trips from Rio de Janeiro to São Paulo.
Before beginning to provide services, carriers undergo a rigorous approval process. Initially, we show them the Raízen Transport Guide (MTR - Manual de Transportes Raízen), which provides rules and guidelines that support our management model. Carriers have time to become familiar with the material and carry out a self-inspection, submitted for our consideration. |GRI 103-2|
Thus, we observe the potential level of service and carry out our own evaluation, where we map gaps and define action plans. Over a predetermined period ─ on average from 6 months to 1 year ─ we monitor the evolution of the company, which is hired when the desired level is reached.
Supporting this audience includes remote monitoring of drivers through a telemetry system, which records information such as distances traveled, speed on the road, clutch actuation time, sudden braking or acceleration, vehicle stop time, fuel level, engine temperature and rotations, and others.
As of the 2018/2019 crop year, only tanker trucks equipped with cameras and voice alert routing will be allowed to transport fuel. Each vehicle will be equipped with four cameras in order to ensure compliance with safe driving procedures and clarify cases of theft or accidents.
Voice alert routing consists of a technology that works through GPS and tablets to transmit to drivers alert messages about speed, critical points, roundabouts, schools, etc. In this way, drivers may adjust how they drive and the speed, since the tool accurately indicates the risks on the road.
For the safety of this audience, we conduct annual inspections at the carriers hired focusing on Health, Safety, and Environment (HSE). Only carriers with performance above 85% may operate. As a result of the inspections, action plans are generated, monitored by our team of advisors, and reviewed and managed by the HSE Committee of the Logistics Department.
Among the recognition mechanisms is the Truck Rodeo, an event in which 50 drivers, with the support of their families, show their skills driving a tanker truck. Drivers must perform a routine of five maneuver precision tests in a maximum time of seven minutes. Participation is associated with fulfillment of the requirements in terms of health and safety throughout the year.
The initiative is part of the "Zero Accident" campaign, focusing on meritocracy. Every quarter, 12 vouchers of BRL 1,000 are drawn only for drivers who recorded zero accidents and zero violations during the period.
We define specific training that drivers of carriers must attend, among which are Defensive Driving, Driver Induction Training (TIM - Treinamento de Indução de Motoristas), to train drivers who will operate with hazardous products, and Descida de Serra (Downhill), which emphasizes caution when driving a tanker truck under these conditions.
With the objective of promoting savings to our partners, we have developed Project One, an important logistical support tool for partners. In 2017/2018, we also began the program called Clube de Compras (Purchasing Club), with strong potential to strengthen our relationship with carriers. The initiative was structured with the goal of improving the truck fleet management of these companies. It consists of a partnership with manufacturers for fleet renewal, collectively, with the guarantee of better commercial conditions for both vehicle purchasing and support and maintenance.
For us, we guarantee the use of a new, safer, and more efficient fleet. For our partners, we preserve the financial health of their business and assist them in order to provide continuity of a quality operation. We expect that, by the end of the 2018/2019 crop year, at least 15% of the fleet under our service will come from this project.
We also have in place the program called Clube Irmão Caminhoneiro Shell, a pioneering relationship program that provides benefits to those who live their lives on the road and are fundamental to distribution and logistics operations.
Network of service stations
For dealers, the main value proposition initiative is the Integrated Offer, through which we offer several benefits and develop a complete marketing plan, with a calendar of promotional actions. With optional adherence, the program already has 3,691 participants - 81% of the stations eligible to the program.
On our consumer experience front, we developed a unique way of doing business. We provide to our dealers a number of training courses and tools in order to train the more than 31,000 attendants at the service stations and convenience stores so that they can offer the best service to consumers of the Shell brand, turning Shell's Humanology concept real at every interaction, in all service stations, every day
Our portfolio includes Shell Select as the brand of our convenience stores, which offers dealers a competitive advantage with strong potential for gaining new customers and winning their loyalty.
In 2017/2018, we introduced a new store format, with the highest technology available in the market. The space has been completely remodeled to make the operation simpler and the consumer experience more intuitive. The goal is to create value to the business and significant savings for the franchisee. The products and promotions are communicated on digital platforms, developed according to the profile of our network and in line with the major dates on our calendar, in order to attract consumers.
The first store implementing the new concept was inaugurated in Jardim Marajoara, in the southern region of the city of São Paulo (SP). To have coffee or schedule a meeting, the space has become a support point for the best customer service, seeking practicality and diversified services.
We also invested in logistics improvements in order to streamline the operation, which is safer, more agile, and at a more competitive cost. With new product options and personalized service, store franchisees have at their disposal the Shell Select Purchasing Portal, which centralizes orders, deadlines, and prices in one place. In addition, we are implementing a fleet of delivery trucks exclusively for the Shell Select network, with GPS monitoring in real time.
Talking with the Dealer (CCR - Conversando com o Revendedor) are meetings held periodically to answer questions, identify demands, and define action plans. In 2017/2018, meetings were held in Rio de Janeiro (RJ), Recife (PE), Belo Horizonte (MG), Fortaleza (CE), Curitiba (PR), and Campinas (SP). Among the main topics addressed were measures that have impacted the dynamics of the resale market, such as the increase in PIS/COFINS for gasoline and diesel, and Petrobras's new pricing policy in refineries, combating fraud, payment methods, convenience stores, promotional campaigns, and others.
The Humanology concept also guides the relationship with dealers. The best dealers are awarded annually, within the program called Você Conquista, with an unforgettable experience. In 2017/2018, they traveled to Lisbon, Portugal, where the award ceremony was held, hosted by famous television actors. At the time, there were 18 highlights in the categories City Stations, Highway Stations, Convenience Stores, Health, Safety and Environment (HSE), and Aviation. Sugarcane producers participating in Programa Cultivar were also awarded. For the next crop year, the destination of the event has already been defined: London, England.
Over 30 dealers have embarked on the Knowledge Journey. They spent four days in Florida visiting stations and companies from different business segments. The group had the opportunity to learn about the best practices of global companies that are capable of generating innovation and new opportunities for their businesses.
We have contracts with over 6,000 suppliers of equipment, materials, and services. The main relationship tool we use with this audience is our Suppliers Portal. Through the channel, those who wish to join our supply team may register, as described step-by-step here.|GRI 103-2|
We have in place guides and policies that summarize the requirements for accident prevention and inadequate working conditions that could cause damage to the environment, our properties, or our employees and third parties. In addition, all suppliers adhere to our Code of Conduct and are committed to our Term of Clauses and General Conditions.
Every month, our procurement team checks documentation of the companies hired and, in the case of irregularities, a block from new contracts is put in place until the issue is resolved. Recidivism can lead to cancellation of existing contracts.
We evaluate the Certificates of Good Standings (CNDs) of suppliers that present high risk to our production process and whether they are included in the list of slave labor, published by the Ministry of Labor and Employment (MTE). Aspects related to quality and delivery timeliness are also evaluated. For those who do not present good performance, meetings are held to record a formal action plan.
In compliance with our anti-corruption practices, we check the National Registry of Punished Companies (CNEP) and the National Registry of Blacklisted and Suspended Companies (CEIS) on a monthly basis. A supplier included on any of these lists will not be permitted to register. Suppliers with the worst indices are checked, especially in terms of Health, Safety and Environment (HSE) ─ with whom measures and actions are established to correct and prevent the problems identified.
Teams at the production units and terminals are also trained to report cases of noncompliance, facilitating the development of action plans for both parties.
In order to ensure better governance and minimize risks of disrupted supply, in 2017/2018, we started a process to monitor strategic suppliers based on the continuous analysis of the financial behavior of our suppliers in the market in which they operate.
In addition, a quarterly identification procedure was established for partners who find themselves in judicial reorganization proceedings, as well as companies involved in cases of corruption. The records are forwarded for analysis by the responsible business area. In the absence of a structured risk mitigation plan, we continue blocking the supplier from registering.
For more information on suppliers and business partners, click here. |GRI 204-1, 308-1, 308-2, 407-1, 408-1, 409-1, 414-1, 414-2|