Who we are|GRI 102-2, 102-6|
We are Raízen, the group that most influenced Brazil3 and one of the most active in the country's economy4. We are committed to offering energy in different forms, today and tomorrow. |GRI 102-1|
We integrate all stages of the sugarcane production chain—for the production of sugar, ethanol and bioenergy—mobilizing people and boosting business.
To move society every day, we also distribute and market fuels to companies from various sectors of the economy and, through the license of the Shell brand, we support a network of service stations and fuel bases at airports throughout Brazil. Our operations also include Shell Select Convenience Stores, which enhance consumer experience at service stations.
Our distribution and marketing activities have service stations, terminals and bases at airports throughout Brazil. We also have units producing sugar, ethanol and bioenergy in the states of São Paulo, Goiás and Mato Grosso. |GRI 102-4|
Attentive to energy transition, in 2018/2019 we advanced in the construction of our first solar power plant and officially started the construction of our biogas plant, which uses industrial waste to generate electricity. These new assets reflect our inquisitive view, with which we invest in research and technology to develop energy alternatives and renewable matrices, important for the future4
Thinking about the energy that drives society today, we also moved beyond Brazil's borders to acquire Shell's assets in Argentina, adding to our structure a network with 665 service stations, as well as fuel terminals, industrial plants and a refinery (see here).5 |GRI 102-4, 102-10, 103-2|
We grow strong because we encourage the best in each of our 29,000 employees and value productive relationships with our partners (sugarcane producers, suppliers, carriers and dealers).|GRI 102-7|
For more information, visit our new website: raizen.com.br.
3 According to Exame magazine's special edition Melhores e Maiores (Best and Largest) 2018, which ranked companies by net sales, earnings and number of employees.
4 According to ranking Empresas Mais, created by newspaper O Estado de S. Paulo.
5 Operations not yet included in the indicators of the Global Reporting Initiative (GRI), due to the short time in operation.
Sustainable Strategy|GRI 102-10, 102-11, 103-2, 103-3|
Our strategy considers the need for a low-carbon economy, which encourages us to expand the portfolio, offering creative solutions to customers and partners and generating the energy of the future.
According to data from the United Nations, a 45% reduction in global emissions of greenhouse gases (GHG) will be needed by 2030. This is an even bolder goal compared to the 20% proposed in 2015, when the Paris Agreement was signed. This challenge encourages companies worldwide not only to invest in the efficiency of their processes but also to redesign business models to be structured around low-carbon.
This scenario highlights the importance of sustainability as an element of our strategy. Rather than reducing the volume of waste generated by our processes, at each crop year we have advanced our circular economy model. One such example is the reuse of vinasse, a byproduct of the ethanol production. Rich in nutrients for the soil, it replaces a part of the synthetic fertilizers applied in our cultivated areas, which represent a significant portion of the emissions from our operations.
Since the beginning of our activities, we have quantified GHG emissions based on the guidelines of The Greenhouse Gas Protocol and its national version, the Brazilian GHG Protocol. The results are audited externally and published annually on the platform of the Brazilian program to provide transparency and improvement in management.
GHG EMISSIONS BY SCOPE IN tCO2eq6 |GRI 305-1, 305-2, 305-3|
Scope 1: Direct emissions from the activities under our control.
Scope 2: Indirect emissions from the electricity purchased from the grid.
Scope 3: Other indirect emissions, mainly from the supply chain.
6 Given the short time in operation, the emissions inventory does not yet include operations in Argentina nor those announced during the crop year.
We see innovation as a sustainability partner in our strategy. An example is second-generation ethanol (E2G), produced since 2014/2015 from sugarcane bagasse fibers, a byproduct of sugar and ethanol production, in a process that allows for an increase of up to 50% in our production using the same cultivated area. The evolution in global energy demand and in agricultural practices ensures ethanol its rightful place in the agenda of the future, especially considering the technological advances in the use of this biofuel. According to data from the International Energy Agency (IEA), on average, conventional sugarcane ethanol can reduce GHG emissions by 89% compared to gasoline.
We continue to diversify our portfolio, aiming to become an integrated energy company, boost our competitive advantage and offer solutions to all our customers. In 2018/2019, we entered into a joint venture with energy trader WX Energy, and, with this, we started to position our company in the free market as well. In addition, we are working on an innovative project to convert, on a commercial scale, vinasse and filter cake into biogas. Another important step is the beginning of our operation, starting next harvest, in the Distributed Generation (DG) market, through our first solar power plant, ready to market energy in the regions of Piracicaba (SP) and Campinas (SP).
Our actions strengthen our look to the future. According to the Energy Research Company (EPE - Empresa de Pesquisa Energética), the trend is for non-conventional renewable sources—such as biomass, solar and wind—to significantly increase their share in the national electricity matrix.
Even with an eye on the future, we see the importance of positioning ourselves today, attentive to current demands. We identified a business opportunity with a model similar to our Brazilian fuel distribution operations—with expected synergies of USD 50 million, resulting from the use of our administrative structure, in addition to a horizon to expand the convenience and trading businesses. Therefore, we completed the acquisition of Shell's assets in Argentina. With the transaction, which involved more than USD 900 million, we started operating a refinery, a lubricant plant, three land terminals, two airport fuel terminals and a Liquefied Petroleum Gas (LPG) plant, and incorporated a network of 665 service stations licensed under the Shell brand. To consolidate this operation, we considered a long-term outlook in a structured market, the quality of the assets, the local team's knowledge of the market, and brand strength in the country. Currently, the operation accounts for 18% of Argentina's refining capacity and holds a 21% market share (average monthly sales per station of 420 m³), and, considering premium fuels, the average share is 36%.
In line with our strategy to expand to new markets and aiming to increase the efficiency in the logistics in fuel distribution in Brazil, at the end of the 2018/2019 crop year, three consortiums we form with other companies were awarded, via an auction conducted by National Waterway Transport Agency (ANTAQ - Agência Nacional de Transportes Aquaviários), three lots of the Port of Cabedelo (PB), one of the Port of Vitória (ES) and another from the Port of Miramar (PA). Together, the areas have initial storage capacity greater than170,000 m³ of fuel. We are committed, according to the bidding documents, to the development of the infrastructure that will contribute to the efficiency in the logistics to distribute this product in the country.
The steps we took in 2018/2019 follow the direction of our avenues of growth. We are attentive to leverage market opportunities and guarantee the best solutions, capable of winning the loyalty of clients and partners, generating high returns to shareholders and spur, among our employees, the pride in being a part of our team.
Our avenues of growth
More information on renewable energy and energy efficiency can be found here. |GRI 302-1, 302-2, 302-3, 305-1, 305-2, 305-3, 305-4|
Risk Management|GRI 102-11, 103-2, 103-3|
Despite being young, with only eight years of activity, we have inherited from our shareholders—Royal Dutch Shell and Cosan—experience in identifying and monitoring risk factors. Our methodology is a reflection of best practices undertaken and improved over decades in both companies.
We rely on a control team , whose task to challenge the other areas to understand the risks and opportunities inherent to each business and the context in which they are inserted. Thus, professionals from all teams can identify internal or external factors that can impact the results and the reach of the goals set out in our strategic planning.
Subsequently, the risks identified by area are prioritized—between the axes "impact intensity" and "likelihood of occurrence"—in nine quadrants of a matrix, revised annually and aligned to our five-year business plan. In 2018, the matrix was composed of 18 factors, two of which considered critical. Based on this definition, action plans and continuous or eventual controls are developed, and resources are allocated to address risks.
The assessment of likelihood is based on the risk category:
Regulatory and legal risks | Related to non-compliance and legal and regulatory requirements, which may result in negative exposure of our brand.
HSE Risks | Related to Health, Safety and Environment aspects (e.g. workplace accidents or with serious environmental impacts).
Strategic Risks | Associated with strategic decisions, such as expansions and investments, among others.
Operational Risks | Concerning efficiency and productivity of operations.
Financial Risks | Related to financial impacts (e.g. exposure to foreign exchange).
Regular review process of the Risk Matrix
In addition, in order to avoid the risk of operation shutdowns in cases of contingencies, we have developed a Continuity Plan for Critical Business Processes—revised annually by managers to identify critical processes to consider. For each risk factor, scenarios and work plans are prepared, simulated periodically with results reported to Senior Management.
Governance structure|GRI 102-18, 103-2, 103-3|
We have in place a robust corporate governance structure, whereby business objectives are clearly established and approved and properly communicated.
Royal Dutch Shell and Cosan define the business strategy, decide on the allocation of net income and distribution of dividends and elect the members of the Board of Directors, among other responsibilities under the Brazilian Corporation Law and by our Bylaws.
Shareholding Structure |GRI 102-5|
Board of Directors
- It is composed of six members, with three representatives from each of the shareholders.
- Three-year terms, re-election allowed.
- Proposes to shareholders the overall strategy and strategic priorities; approves significant investments; elects and removes members of the Executive Board, among other duties described in our Reference Form.
The Board of Directors is supported by four committees:
- Finance Committee;
- Audit Committee;
- Remuneration Committee; and
- Corporate Social Responsibility Committee.
- Composed of at least four (one Chief Executive Officer, one Operations Director, one Finance Director, and one Executive Director) and a maximum of eight members.
- Three-year terms, with the exception of the Chief Executive Officer, who has a two-year term, with re-election possible in all cases.
- Responsible for management of the business and implementation of policies and guidelines established by higher levels.
Encourage the involvement of employees, from different areas and hierarchical levels (including Senior Management), in the discussion of topics relevant to improvement of corporate practices and organizational climate. The executive committees are:
- Ethics Committee;
- Compliance Committee;
- Diversity Committee;
- Health, Safety and Environment Committee;
- Market Risks Committee; and
- Investment Committee.
More information about the Board of Directors and the Executive Board can be found at ri.raizen.com.br.