REPORT 2021/2022
reshaping the
future of energy
Leading the
energy
Transition
We are Raízen, an integrated energy company and a global leader in bioenergy. For more than 10 years we are playing an important role to shape the future of energy through innovation and technology. We’re working to build an increasingly clean energy mix to support a low-carbon economy
We are currently the largest sugar producer in the world, with an output of
million metric tons
in 2021/2022.
We’re transforming the future of energy but without neglecting society’s energy needs today. As we invest to expand our portfolio of renewable energy products and services, we concurrently operate the second largest fuel distribution network both in Brazil, as ranked by the Brazilian Oil, Natural Gas and Biofuels Agency, and in Argentina, according to the country’s Ministry of Energy and Mining.
In the crop year, we:
of electricity
The crop year
at a glance
THE LARGEST IPO IN 2021 on the Brazilian stock
exchange, B3,
with our shares now traded under the ticker symbol RAIZ4
Completed our integration with Biosev, onboarding 10,000 employees and nine bioenergy operations—with an electricity export capacity of 1,316 GWh.
Formed a joint venture with Grupo Gera to accelerate our growth strategy in renewables by developing small hydro and waste-to-energy biogas plants.
Acquired a 50% interest in Barcos Y Rodados to enter the Paraguayan market, where we will operate 340 Shell-branded service stations.
Installed a new crude distillation column at our Buenos Aires refinery, due to start operation in the second half of 2022, as part of a R$ 715 million investment plan through 2024.
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Joined the UN Global Compact, the world’s largest voluntary corporate sustainability initiative to engage the private sector around business practices related to human rights, labor, environment and anti-corruption.
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Received Women on Board (WOB) certification for diversity in our Board of Directors.
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Established the first women-only Statutory Audit Committee in Brazil.
Message from
the CEO
When I say that we are leading the energy transition at Raízen, it means that we know exactly how, when and where we want to be. Over these last 11 years, we have been working to strengthen an integrated and irreplicable platform, a platform of solutions that has been reshaping the future of energy and is dedicated to causing positive impacts for everyone across this journey.
Always attentive to the society’s most complex demands, we are our client’s preferred partner to decarbonize their energy matrix. But we want to go even further, guided by solid and achievable targets that are aligned with our purpose and have been extensively studied by the many special people spearheading our incredible team.
In the 2021/22 crop year, we aligned our public commitments to the urgent needs of the Decade of Action, the critical period through 2030 during which, according to the United Nations, the world must accelerate sustainable solutions to reduce global greenhouse gas emissions. We defined new targets that reinforce our role in accelerating the energy transition and fighting climate change.
We are leading this movement because we are at the forefront of understanding demands and anticipating solutions to facilitate decarbonization. Our renewables portfolio is formed by first-generation ethanol, an already incredible solution that enables 80% reduction in emissions compared to gasoline; electricity cogeneration from sugarcane processing; second-generation ethanol (E2G), with emissions 30% lower than conventional ethanol, and because it is made from waste materials such as sugarcane bagasse and straw, increases by 50% our biofuel production potential with no need to expand our planted area; as well as biogas and biomethane, solar power and other sources that we are integrating into our ecosystem, with the goal of expanding our renewable energy production by 80% by 2030 – which is our first target related to climate change.
This crop year, we moved closer to this goal: by integrating the assets of Biosev, expanding our operations to 35 bioenergy complexes and our cogeneration installed capacity to 1.5 GW; we added new renewable energy sources to our portfolio with the acquisition of Gera; and we made a capital injection in Tupinambá Energia to accelerate growth of Brazil’s recharging network for the electric mobility segment.
We also announced the construction of three new E2G plants located in Guariba, Valparaíso and Barra Bonita, in the state of São Paulo. These plants, slated for startup by 2024, will add 246 million liters of biofuel to our annual installed production capacity, which will reach 280 million liters, 80% of which already has been sold via long-term agreements. Our growth plan envisages the startup of 20 new plants by 2030.
I
am very proud to lead a team that considers sustainability an integral and inseparable part of
our strategy.
We also made progress in the development of biogas. We already have one of the world’s largest plants producing biogas for conversion into electricity. In 2021/22, we announced the construction of our first plant producing biomethane, which uses biogas as feedstock, to substitute natural gas, diesel, liquefied petroleum gas (LPG) and fuel oil. Our goal is to continue expanding our generation capacity based on biogas and to develop biomethane projects in all our bioenergy complexes by the end of the decade of action.
Not only do we want to offer more clean energy alternatives for our clients, we also are committed to increasing operating efficiency. As such, our second target is to reduce our ethanol carbon footprint by 20%, improving on our previous 10% reduction target adopted in our public commitments undertaken in 2018/19.
This goal to reduce our carbon footprint is directly related to our continuous efforts to optimize our production process by increasing productivity in our agricultural operations, strengthening the circular economy, capturing energy efficiency gains and optimizing our logistics. One of our allies in this journey is Pulse Hub, which connects startups with our business areas, as well as SER+, a continuous improvement program already running at 23 bioenergy complexes and gradually being rolled out to our entire agro-industrial production chain.
As part of our first two goals, we will expand our offering of premium products to meet the needs of markets with more stringent standards and the demand for value added products in Brazil and the world. This leads us to our third target, which is reaching 80% of adjusted EBITDA generated by renewable businesses by 2030, evidencing that the energy transition is profitable and an opportunity worth investing.
And last, but not least, our final target is to reduce by 10% carbon intensity in the use of the products we sell, which reinforces our responsibility with regards to the greenhouse gas emissions generated outside of our operations and our vocation as an agent fostering decarbonization from farm to consumer.
If the climate agenda is intrinsically connected to our business, sustainability goes far beyond it. We have targets related to diversity and inclusion, traceability of our feedstocks, land use, human rights, water management, ethics and compliance and community relations. Our goals are monitored by dedicated teams, which report their progress to me periodically, and are directly related to the UN Sustainability Development Goals. In fact, we recently became a signatory to the Global Compact, which confirms our connection with the world’s main sustainable development initiatives.
To reinforce the link between our business model and our ESG Agenda, we created the Strategy & Sustainability Executive Vice Presidency, which combines the Strategy, New Businesses, M&A and Sustainability areas and incorporates even more Environmental, Social and Governance aspects into our strategic discussions and decision-making process, including capital allocation.
I am very proud to lead a team that considers sustainability an integral and inseparable part of our strategy. If today we enjoy access to highly demanding markets, it is because more than ten years ago we understood the importance of following internationally recognized sustainability standards, such as Bonsucro, and of sharing good practices with our suppliers, through ELO – which in 2021 was recognized by the Farm Sustainability Assessment (FSA) via the Sustainable Agriculture Initiative Platform (SAI Platform).
If today we have highly qualified teams, it is because we trained and recognized people and fostered diversity of backgrounds and thinking. If today we have expanded our operational footprint and our bioenergy complexes, it is because we focused on developing our communities by fostering local vocations and helping people to proactively pursue their ambitions. If today we are reshaping the future of energy, it is because we are attentive to society’s demands, while focusing on innovation and efficiency. The pages of this Sustainability Report – as well as the Activities Report of the Raízen Foundation – attest to these achievements.
And the results achieved in the 2021/22 crop year further legitimize the scale of our ambition. We carried out one of the largest Initial Public Offerings in the Brazilian Stock Exchange (B3) history, we incorporated new renewable energy sources into our portfolio, we entered the Brazilian lubricant market and we started to operate Shell’s assets in Paraguay. And we achieved all this while delivering our best operational performance and reinforcing, once again, safety as a non-negotiable value, commemorating a crop year with zero fatalities.
I am very optimistic when I see what still lies ahead, I am confident in our team’s ability to deliver and I have no doubt that we will be successful in our journey, because every day we wake up with a great sense of pride in what we do, the ambition to transform the world and the dedication to prove our purpose worthwhile.
We continue working together to reshape the future of energy, with the conviction that our work contributes directly to two of the world’s biggest challenges: clean energy and climate security!
Ricardo Mussa CEO
A unique and irreplicable
business model
operations
in Brazil’s Southeast and Midwest, located near consumer markets in synergistic clusters that are well-served by logistics infrastructure for both domestic and overseas shipping.
Veja omapa
One of the largest fuel distribution networks in Brazil, Paraguay and Argentina, including strategically located multimodal terminals:
distribution bases
ports
airport bases
service stations
A larger sugarcane crush capacity than entire countries, such as China, Thailand, Mexico, Pakistan and the US.
A workforce of more than 40,000 employees, with a goal to reach 30% women in leadership positions from coordinator upward by 2025—from a current baseline of 21%.
Approximately 1.3 million hectares of cultivated land.
Sustainably sourced raw materials:
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We cultivate 50% of the sugarcane we crush under a public commitment to implement Bonsucro standards. Currently 77% of our bioenergy parks in operation are Bonsucro-certified, a percentage that we expect to increase further to 100% by 2027.
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The other 50% of our raw materials are supplied by contract growers, 97% of which are participants in ELO, a unique global sugarcane sourcing program that is advancing measures to promote sustainability, environmental protection and respect for human and labor rights.
Structured
Growth
EXPANSION We’re working to expand the share of renewable energy in our portfolio as we incrementally use sugarcane biomass to generate electricity and explore new sources, such as solar for distributed generation.
We will also continue to invest in first- and second-generation ethanol, biogas,
cogeneration and pellets.
A large supply of biomass, proprietary technology and commercial capabilities.
1,5 GW
energy self-sufficient,
ENGAGING
CLOSELYWITH OUR CUSTOMERS
WITH OUR CUSTOMERS
Long-term
value proposition
Long-term
value proposition
Strong performance on our CDP Climate Change questionnaire: Raízen has made the CDP’s
climate change A List alongside other top-scoring companies, crowning a journey of
consistent progress.
Joined the CDP Supply Chain Program to support our suppliers’ progress in managing
emissions and climate-change risks.
all employees.
metric tons of CO2 through our products since 2011
10million
de tCO2 avoided per year.
Edvan Reis, winner of the 10th edition of the “Rodeio de Caminhões”.
Marina García, a teacher responsible for special projects at Escuela de Educación Especial N°506.
Indicators
and metrics
As part of our commitment to transparency, we have prepared our 11th Annual Sustainability Report
in accordance with the Global Reporting Initiative (GRI) Standards—Core option and the recommendations of the Sustainability Accounting Standards Board (SASB).
We have also adopted for the first time the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), created by the Financial Stability Board (FSB); and the World Economic Forum’s (WEF) Stakeholder Capitalism Metrics.
