Sustainability Report 2019 - Flores Funza

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SUSTAINABILITY REPORT 2019

Since its foundation, Flores Funza has made it a priority to protect the environment, provide opportunities and welfare to all our employees, and take importance attention and care of natural resources.

A fundamental asset for the company has been its workforce, therefore, personal growth, training and development of its employees is and must continue to be a fundamental pillar to achieve the goals we have set as a company.

The flowers that we grow allow our end clients to express happiness, joy and myriad other positive feelings to others. We believe that transmitting these sentiments begins with our commitment and dedication to excellence, including the strict monitoring of our impact on the environment.

MISSION VISION VALUES

Produce, market and export high quality agricultural goods within ethical principles and profitability, allowing and encouraging innovation within a work environment that enables creativity, the development of its employees, the conservation of the environment and committing to the satisfaction of customers, partners and collaborators.

Continue growing as a leading company in the flower industry, maintaining excellence in:

• Quality of products and services

• Environmental management

• Innovation

• Development of human talent

• Profitability

Labor relations framed within respect, equity and fair treatment, privileging the development of people and their innovations. Acting with integrity, coherence and responsibility.

MAIN PRODUCTS

NOVELTY ITEMS

NEW BUSINESS

MARKETS

Flores Funza´s products are present around the globe: Argentina, Ireland, China, Canada, USA, Slovakia, Finland, Poland, Czech Republic, Switzerland, Lithuania, Sweden, Norway, Hungary, Spain, Russia, Germany, England, Holland, Italy, Portugal, France, Puerto Rico, New Zeland, Jamaica, Panama, Japan, Hong Kong, Australia, Ireland, Scotland, Portugal, Brazil.

OUR PEOPLE

Human talent is the differentiating factor of the company.

• 3,000 workers of which 70% are women.

• Generation of employment in areas of influence by hiring mothers who are heads of families with low socioeconomic levels.

• Construction of life projects aimed at improving the conditions of workers and their families.

• Guarantee of jobs with a fair remuneration in conditions of equity, inclusion, equality and respect.

• Offering a privileged work environment based on respect, recognition and human treatment.

• Possibilities of development according to their capacities, better opportunities.

• Freedom of association, Unions

DIVERSITY AND INCLUSION

The organization offers opportunities to different types of people, regardless of race, origin, religion, gender identity, sexual orientation or political beliefs.

SOCIAL WELFARE

STAFF WITH THEIR OWN HOME

More than 50% of our workers have fulfilled their dream of owning their own home.

The purchase and improvement of housing is supported through the Employee Funds. This program has benefited 110 employees in the last 3 years.

100% 80% 60% 40% 20% 0% 45% 50% 53%
2018 2019 2017

EDUCATION

Flores Funza financially supports all our employees´ education programs, and also invest in permanent training.

Technical Primary & High School University & Masters Degree NUMBER OF EMPLOYEES STUDING IN 2019 EDUCATION SUPPORT FOR EMPLOYEE CHILDREN 2019 2017 2018 2.000 1.800 1.600 1.400 1.200 100 80 60 40 20 0 86 10 28 1.900 1.880 1.717

EMPLOYEE FUNDS

Inspired by the principle of solidarity, based on self-help and mutual aid, Flores Funza has three voluntary Employee Funds that cover 85% of employees.

The Company allocates resources from reusable residues to strengthen the social management of the Funds.

All of them have access to low cost credits to meet needs as housing and education, (Formal and non-formal education).

Total amount in 2019: USD $100.000

PROGRAM SCOPE

EXTRA INCOME BENEFITS

The company pays its employees extralegal amounts such as Christmas bonuses, vacation bonuses and food assistance

KNOWING OUR COMPANY IN FAMILY

Show the worker’s families the values, products, processes, programs and infrastructure of the company with the purpose of strengthening the relationships with the whole houshold group.

PROFESSIONAL ORIENTATION

Provides information needed for the selection of higher education (technical, college) to workers with children about to finish high school

PRIMARY AND HIGH SCHOOL VALIDATION

TEEN PROGRAM

Promotes the improvement of the educational level of employees

Creates spaces of reflection and debate facing current problems (drug addiction, alcoholism, among others) of adolescents to avoid them and also prevent intrafamily violence

RECREATIONAL VACATIONS

Bring the children of workers closer to the culture of the company

CHRISTMAS PARTY CHILDREN AND WORKERS

Promote a leisure and entertainment space for the workers’ children in order to narrow the company-employee relationship

SPORTS AND RECREATION 5K and 10K RACES Generate integration spaces and healthy lifestyle habits

RETIRED PLANNING

Strengthen communication with the group of retired and soon to retire personnel , holding meetings that prepare them for this event

DREAMS

CULTURAL AND SPORTS WEEK

PHYSICAL ACTIVITY WITH MUSICALIZATION

BY GROUPS (GENDER AND AGE)

Support the workers in the identification and fulfillment of dreams that allow the improvement of the quality of life of the worker and his or her family

Generate integration and entertainment for collaborators

Improve aerobic endurance of the participants and generate space to release tension

ACCIDENTALITY AND PSYCHOSOCIAL RISK

We maintain constant vigilance and dedicate an important time to the health promotion of the employees.

During the last two years, progress has been made in the implementation of the Occupational Health and Safety Management System (SGSST), currently the level of advancement is 80% and by 2019, 100% will be reached.

Additionally, other practices that minimize the health risks of our collaborators have been implemented:

• Mechanization in post-harvest areas

• Standardization of high-risk tasks

• Safe work in TSA heights

• Surveillance programs to minimize ergonomic risk

ACCIDENT RATE 2017 2018 2019 Accidents rate 10% 7% 6% Sector rate 12% 11% 9% Number of accidents or incidents/ number of employees

COMMUNITY

Flores Funza, is committed to the solution of social problems, supporting different kind of foundations, such us: PRODEOCSA, Fundación Cardioinfantil and Fundación Michín.

OUR SUPPLIERS

Flores Funza performs strict controls in the evaluation and selection of our suppliers, making sure they comply with all labor and environmental laws.

Photo: jannoon028

ENVIRONMENTAL INDICATORS

From the beginning, Flores Funza has produced high quality flowers with a sustainable focus, harmonizing the economic, social and environmental pillars under the direction of the Integrated Management System

Water Rational Use of Energy Waste Carbon Footprint Index of the process

Agrochemicals (fertilizers and ppc) Landscaping and Biodiversity

We constantly invest in technologies that help us reduce water consumption such as automated irrigation and localized high frequency irrigation. Likewise, we have increased rainwater collection and storage

Water Use Rainwater source Rainwater collection storage Water use m 3 % increase 35% 47% 38% 85% 86% 89% 70 60 50 40 30 20 10 0 100% 90% 80% 70% 2017 2018 2019 WATER USE/Ha INCREASE IN RAINWATER COLLECTION STORAGE 2017 2018 2019
capacity.

In all production centers, the reduction of consumption is sought by monitoring, optimizing processes, renewing equipment, controlling and eliminating leaks and losses, decreasing carbon emissions.

Electric energy Other energy sources Millions of kw 25.373.876 28.690.566 28.050.718 28.323 30.630 28.280 5.332 6.534 7.449 7.191.947 7.399.745 7.633.913 35 30 25 20 15 10 5 0 TOTAL ENERGY CONSUMPTION / Ha Energy Consumption 2017 2018 2019
EMISSIONS CO2 EQ/Ha Ton CO 2 eq/Ha 35.000 30.000 25.000 20.000 15.000 10.000 5.000 0 Carbon Footprint Indirect Direct 2017 2018 2019

Solid Waste Generation

Flores Funza has a program of integrated waste management, which aims to minimize the impact they may cause to the environment.

• Classification, management and disposal of waste

• Recycling waste

• Costing of plant waste

• Organic waste fiber processing plant

The integrated management of pests and diseases has allowed to reduce the consumption of active ingredient per hectare, by -62% since 1994.

The use of lower toxicological categories and the substitution of biological chemicals, seeks to reduce the environmental impact.

AVERAGE CONSUMPTION OF ACTIVE INGREDIENTS (AI) 2017 2018 2019 Kg AI / Ha 110 100 90 80 70 60 Supplies Use Farm average Sector average
CONSOLIDATED BY TOXICITY CATEGORIES (AVERAGE) Kg AI / Ha 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 Category 1 Category 2 Category 3 Category 4 61,67 27,92 19,47 16,27 17,73 13,73 0,34 0,33 0,15 15,50 56,45 19,58 2017 2018 2019
91,0 100,7 91,8 84,9 91,7 92,4

Landscaping and Biodiversity

Flores Funza records in its plant inventory, 27,680 trees and bushes planted.

According to the Ministry of Environment of Colombia, the company seeks to generate a positive impact on the landscape inside and on the perimeter of the farms. Plant communities based on the concepts of ecological succession and biodiversity that improve the working environment and serve as protective barriers for biological communities and carbon deposits.

RECOGNITIONS AND CERTIFICATIONS

Authorized brands

Social code: ETI Ethical Trading Initiative Global GAP (Homologación FSF)

Business Alliance for Secure Commerce (In process)

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