CITIZENSHIP
BUNGE SOUTHERN CONE PRODUCING TOGETHER
2014 REPORT
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CONTENTS Bunge Southern Cone Delivering today and building for the future Our Company
Strategy
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2014 Citizenship Report Preparation Process from Bunge Southern Cone
Corporate Governance
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General Coordination Citizenship Bunge Southern Cone relaciones.comunidad.bar@bunge.com
Sustainable Development Model: Producing Together
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Producing Value
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Producing Development
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Producing Talent
About this Report
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Creativity, Design and Production JardĂn BA jardin@jardinba.com Counseling and Technical Support Crowe Horwath luis.piacenza@crowehorwath.com.ar or paula.signifredi@crowehorwath.com.ar Printing Cover paper: Rives Sensation Tactile 100% recycled, 270 grams. Inside paper: Sensation Bright White 100% recycled, 120 grams. All Rights Reserved. Argentina. November 2015.
GENERAL CONTENTS
SUSTAINABLE MANAGEMENT
PRODUCING TOGETHER
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INDUSTRIAL COMPLEXES
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PRODUCING VALUE
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CERTIFICATIONS OF
SUSTAINABLE SOY
100% OF INDUS-
PORT TERMINALS
TRIAL COMPLEXES CERTIFIED UNDER INTERNATIONAL QUALITY STANDARDS
NET SALES
BUNGE LIMITED`S
6,019,597 MILLION DOLLARS
SAFETY AWARD
PRODUCING DEVELOPMENT
95.6%
OF PURCHASES FROM LOCAL SUPPLIERS
PRESENT IN
5
COUNTRIES
PRODUCING TALENT
2,089
EMPLOYEES
16
TRAINING AND DEVELOPMENT PROGRAMS
CONTRIBUTION OF
U$D 572,905
IN DONATIONS AND SOCIAL INVESTMENTS
4.83%
OF ANNUAL TURNOVER
Bunge’s purpose is to improve the global food production chain from end to end – how food is grown, stored, processed, transported and distributed – to meet the needs of people today and tomorrow while conserving the natural resources on which our world depends.
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MESSAGE FROM THE PRESIDENT I am pleased to introduce our first Sustainability Report for Bunge Southern Cone . This means that our Responsible Citizenship actions carried out in Argentina, Bolivia, Chile, Paraguay and Uruguay are shown on these pages. For some years, one of our main goals, which was renewed this year, has been the integration of Bunge Southern Cone. By establishing an operating, logistic and commercial synergy we continue increasing our efficiency and supporting the development planned for the region. The goals considered for Bunge Southern Cone are achieved by means of a team of more than 2000 employees, with a strong entrepreneurial spirit, committed to the continuous improvement and team work. In 2014, we faced several challenges which were tackled by joint efforts. This resulted in the successful management strengthening of Nutriol in Bolivia, CAIASA, Ferticom and Tio Kike in Paraguay and Promaíz, TFA, Aceitera Martinez and Terminal 6 in Argentina, together with our strategic partners in the region.
“
P. Enrique Humanes, President and CEO of Bunge Southern Cone
We have created a Company with a vision of the future, with plans to keep on growing and, this way, we continue contributing substantially to the regional production and general well-being. Sincerely, P. Enrique Humanes
Always prepared for new challenges: We have consolidated our presence in the region. BSC is focused on adding value to the agribusiness chain and improving production at origin. P. Enrique Humanes, President and CEO
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Bunge Southern Cone or BSC.
”
GENERAL CONTENTS
MESSAGE FROM THE CPO AND COMMUNICATIONS DIRECTOR Managing sustainability in Bunge is a core value within all our activities, and we are glad to say that, in practice, it is a key issue in our everyday agenda. As we believed we needed to go further, we decided to include the Responsible Citizenship strategy in one comprehensive report, which we are currently developing for Argentina, Bolivia, Chile, Paraguay and Uruguay. Finally, after a year’s hard work, we take pride in introducing the first Responsible Citizenship Report from Bunge Southern Cone. Not only does this report consolidate our commitment to sustainable development, but it also lets us communicate with our stakeholders. We strongly believe in constructive dialogue and we invite our clients, consumers, strategic partners and employees to share suggestions that allow us to improve our processes and treat all material aspects for the community as a whole. Our core issues are managed by means of our model of Sustainable Development: Producing Together. We invite you to read the pages of this report and to get to know the three key aspects of our sustai-
“
Walter Savarecio, CPO and Communications Director of Bunge Southern Cone
nability strategy: Producing Value, Producing Development and Producing Talent. For Bunge Southern Cone, these three aspects are the way of Producing Together. Sincerely, Walter Savarecio
Great Opportunities: Sustainable development is the chosen path. It is not a trend but the key for the Company to keep on growing within ever demanding and specialized markets. Walter Savarecio, CPO and Communications Director
”
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BUNGE SOUTHERN CONE: DELIVERING TODAY AND BUILDING FOR THE FUTURE
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OUR COMPANY
Bunge is a global agribusiness company that operates in South America, North America, Europe, Asia and Oceania. Our region is part of Bunge Southern Cone’s production unit, which includes Argentina, Bolivia, Chile, Paraguay and Uruguay. The activities developed are present throughout the agro-industrial chain:
• Fertilizers production and trade. • Grains reception, storage and trade. • Oilseeds industrialization with meals and oils production. • Lecithin production. • Biodiesel and glycerin production. • Commercialization of refined and bottled oil for human consumption. • Commercialization of white and whole rice, bottled and in bulk.
Integrated operations throughout the region OILSEEDS AND GRAINS CRUSHING FACILITIES Argentina: A San Jerónimo Sud B E Puerto General San Martín C Ramallo D Tancacha 3
Bolivia: G Puerto Juarez
G
Paraguay: H Villeta H
D J
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I E B A
1
C 2 F
5
VEGETAL OIL REFINERY PLANTS Argentina: A San Jerónimo Sud B Puerto General San Martín OIL BOTTLING PLANT Argentina: A San Jerónimo Sud LECITHIN MANUFACTURING PLANT Argentina: D Tancacha
TRADE OFFICES Argentina 1 Rosario 2 Buenos Aires Bolivia 3 Santa Cruz de la Sierra Paraguay 4 Hernandarias Uruguay 5 Montevideo
FERTILIZER PRODUCTION Argentina: C Ramallo F Campana
I
Puerto General San Martín
BIODIESEL PRODUCTION Argentina: E Puerto General San Martín ETHANOL PRODUCTION Argentina: J Alejandro Roca
Due to its geography and facilities, the Southern Cone region can efficiently supply the world with various grains at any given season.
BUNGE SOUTHERN CONE: DELIVERING TODAY AND BUILDING FOR THE FUTURE
PORT TERMINALS Its port logistics and the flexibility of its facilities give Bunge an important capacity of reception, storage and unloading of grains, oils and by-products. Services in ports are available 24/7, 365 days a year.
1 PUERTO GENERAL SAN MARTÍN TERMINAL - Santa Fe 2 RAMALLO TERMINAL - Buenos Aires
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10 11
9 14 13
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3 TERMINAL 6 - Santa Fe 4 BAHÍA BLANCA TERMINAL - Buenos Aires
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5 QUEQUÉN - Buenos Aires 6 GUIDE - Santa Fe
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7 DOS FRONTERAS - Paraguay 8 TROCIUK - Paraguay
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9 CAIASA - Paraguay
GRAIN ELEVATORS AND WAREHOUSES A network of cereals and oilseeds grain elevators and warehouses strategically distributed, along with the huge storage capacity of Industrial Complexes, constitute a valued operational fortress: they make it possible to have off season crops, optimize resources and add a competitive egge to agricultural producers and the industry. 10
LAS LAJITAS - Salta
11
PIQUETE CABADO - Salta
12
BANDERA - Santiago del Estero
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DELFÍN GALLO - Tucumán
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LAS CEJAS - Tucumán
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GENERAL PAZ - Córdoba
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GENERAL PINEDO - Chaco
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AVIA TERAI - Chaco
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GRUMBEIN - Buenos Aires
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AMÉRICA - Buenos Aires
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QUEQUÉN - Buenos Aires
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CURUGUATY - Paraguay
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CRUCE GUARANY - Paraguay
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PRODUCTS AGRIBUSINESS • Grains and oilseeds Wheat, Peanut, Sunflower, Corn, Soy, Safflower, Sorghum, Barley.
• Vegetable By-products Lecithin, glycerin, fatty acids, neutral/refined oils, proteins, crude oils.
• Industrial Products High-protein meals, refined and crude oils, supplies for chemical and food industries.
• Chemical By-products Industrial ammonia, ammonia for refrigeration, industrial prilled urea, urea solution 20%N, photographic grade TSA.
FERTILIZERS • Nitrogen SoIMIX, SoIUAN, Prilled Urea, Granular Urea. • Phosphate Calcium single superphosphate, diammonium phosphate, monoammonium phosphate, StartMIX, calcium triple superphosphate.
• Sulfur Ammoniated P-S Complex, SoIMIX, ammonium sulfate, gypsum. • NPKS Mixtures NPK Rice, NPK for Fruit Trees and Horticulture, NPK Yerba and Tea.
Our Fertilizers Brands
FOOD AND INGREDIENTS • Animal nutrition Hi-Pro Soybean Meal (47%), Low-Pro Soybean Meal (44%), Profat Soybean Pellets, Safflower Meal and Pellets, Whole Grain Sunflower Pellets, Peanut Pellets, Soybean Lecithin, Soybean Hull Pellets
• Refined oils, bulk and bottled • Crude glycerin • Refined glycerin USP grade • Polished, slender, long grain white rice, 0000 and 00000 quality • Slender, long grain white rice, Puitá variety
Food Brands
OTHER ARNOX 32
BUNGE SOUTHERN CONE: DELIVERING TODAY AND BUILDING FOR THE FUTURE
INSIDE BUNGE SOUTHERN CONE Our Teamwork
2089 Employees 1869
3 51
220
53 1982 1
10.83% of women work in leadership positions.
4.83% of annual turnover (termination / staff).
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STRATEGY
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STRATEGY
Our intent is clear: to unlock greater value today, while building a solid foundation for future growth and consistent high performance.
FOCUSED ON WHAT WE DO BEST Bunge sets goals and strategies defined by our Corporate Governance globally, which are carried out in all the countries where the Company operates. Our performance is focused on four areas:
Stand for Safety
STOP. THINK. PROTECT.
Right Balance
Best in Class
Winning Footprint
STRATEGY
CORPORATE VALUES AND GLOBAL PRINCIPLES FOR INDUSTRIAL OPERATIONS To carry out our strategy and as a guideline for our actions and behavior, Bunge has corporate values and global principles of operational excellence.
CORPORATE VALUES
Integrity Honesty and fairness guide our every action.
Openness and Trust We are open to other ideas and opinions.
Teamwork We value individual excellence and work as a team.
Entrepreneurship We prize individual initiative.
Citizenship We contribute to the development of the communities where we work.
Sharing common concepts of what we do and what we want to be, ensures that we align our activities all over the world, establishes a shared vision, fosters
understanding among colleagues of different areas and creates a wish to achieve excellence; these are the main aspirations of the general management.
GLOBAL PRINCIPLES OF BUNGE’S INDUSTRIAL OPERATIONS
Safety
Citizenship
People Management
Product Quality and Safety
Physical Asset Management
Technology and Innovation
Investment Project Management
Continuous Improvement
Competitive Execution
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CORPORATE GOVERNANCE The Executive Committee of Bunge Southern Cone is responsible for making the decisions on economic, safety, environmental and social matters of the Company. The Members of the Committee are:
President & CEO
Commercial Vice President
P. Enrique Humanes
Rubén Rodríguez Fertilizers Director
Origination Director
Vice President
Jorge Luis Frías
Martín Hansen
Daniel Orjales
EXECUTIVE COMMITTEE
Guillermo Marcotegui
Food and Ingredients Director
Walter Savarecio
Ramón Fernandez Asenjo
José Castelli
Horacio Moretti Supply and Logistics Director
Carlos Nowik
Manufacturing Director
Guillermo García Global VD Research & Business Analysis
Finance and Administration Director
CPO and Communications Director
Legal, Insurance and Government Affairs Manager
CORPORATE GOVERNANCE
ETHICS AND INTEGRITY: COMMITMENT TO TRANSPARENCY
At Bunge, integrity is at the core of how we conduct business in the global marketplace. We serve a very important purpose: creating global supply chains and building local operations which help make affordable and high quality food products available to millions of people. Focused on management transparency and risk control, we implemented corporate governance mechanisms based on the most widespread and efficient global practices. The four most significant mechanisms are: - Anti-Corruption Compliance Policy, according to the Foreign Corrupt Practices Act (FCPA). - Implementation model of Sarbanes Oxley Act (SOX). - Code of Conduct. - Ethics Hotline to report inappropriate behaviors. Bunge Southern Cone has adopted these guidelines to show the commitment of the Company to the adequate corporate governance and to comply with rules and other legal requirements.
CORPORATE INFORMATION Corporations Bunge Southern Cone comprises the activities of companies controlled by Bunge Limited, a company headquartered in White Plains, New York, United States. Bunge Limited is a company listed in the New York Stock Exchange (NYSE:BG). This report refers to the Corporate and Social Respon-
sibility management of the company in Argentina, Bolivia, Chile, Paraguay and Uruguay, through companies operating in the region. The entities related to this report can be seen in the Annual Report of the parent company, published on Internet (www.bunge.com/bunge2014ar/index.htm).
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SUSTAINABLE DEVELOPMENT MODEL: PRODUCING TOGETHER
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SUSTAINABLE DEVELOPMENT MODEL: PRODUCING TOGETHER Bunge’s Global Sustainability Policy
Bunge is committed to sustainable development and adheres to the following principles: • We strive to be good citizens by contributing to the economic and social development of the communities where we work; • We work to achieve a high level of environmental performance by adopting science-based, culturally sensitive and pragmatic best practices, and by promoting these practices within our supply chain;
This report has been structured around three pillars that conform our sustainability strategy at Bunge Southern Cone. This strategy was created taking into account our corporate policy and the vision of the interviewed stakeholders. Producing Value Producing value is the main principle for every company that pursues a financial goal. Value cannot be produced at any cost. Producing value means keeping the balance of each one of the aspects that make up the organization.
• We partner with companies and organizations to promote and apply sustainable practices; and • We communicate openly about our activities and maintain a constructive dialogue with stakeholders.
America. In the region, and in relation to environmental issues, climate change, which affects crops yield and modifies the hydrological regime, causing droughts and floods and a certain degree of vulnerability in some ecosystems, mainly in human systems, requires the private sector a proper performance in this process. For the Company, producing development means an understanding of the needs and an adjustment to the agenda regarding health and a healthy diet, social investment, education, climate change and sustainable agriculture.
For Bunge Southern Cone, the creation of value is closely related to our corporate image and reputation, to the well-being in the workplace, which preserves workers’ safety and health, to the compliance of the necessary conditions to assure the food safety of our products and, essentially, to the responsible management of environmental impacts, so that value can be sustainable.
Producing Talent Talent management and development are crucial to any company wishing to maintain their leading position and keep on growing.
Producing Development Urban development, social structure changes, the need for a better infrastructure and higher levels of consumption and energy have been some of the social aspects with greater impact over the past decade in Latin
Bunge Southern Cone believes that Human Rights and Diversity, Ethics and Transparency, and Continuous Training and Education are key to its management.
To achieve this goal, we must attract and keep talents to train them in order to improve their skills and their career development opportunities.
SUSTAINABLE DEVELOPMENT MODEL: PRODUCING TOGETHER
SUSTAINABILITY STRATEGY
BUNGE ARGENTINA
STAKEHOLDERS
• Governance and Strategy
• Context : Local and Global
• Facilities
• Dialogues: Dialogue Mechanisms, Issues and Topics, Materiality Matrix
• Control and Compliance
PRODUCING TOGETHER 2014
PRODUCING VALUE
PRODUCING DEVELOPMENT
• Health, Safety and Working Conditions
• Sustainable Agriculture and Adaption to Climate Change
• Environment
• Community Development
• Food Safety: Product Quality and Safety, Consumer Health and Safety • Value Chain • Leadership in Operations
PRODUCING TALENT • Human Rights and Diversity • Ethics and Transparency • Continuous Training and Education
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PRODUCING VALUE HEALTH, SAFETY AND WORKING CONDITIONS Bunge Southern Cone wants to achieve a Zero Incident Culture in all of its operations, complying with Bunge’s Global Hygiene and Safety Policy.
GLOBAL HYGIENE AND SAFETY POLICY Our Vision: Bunge is committed to the Zero Incident Culture by means of the integration of safety in all Company´s work sites and businesses, through a continuous improvement process and complying with Bunge’s Global Hygiene and Safety Policy. Our goal is to be a company with no work-related injuries or diseases. Our Commitment: The prevention of fatal incidentes and near misses of employees, contractors and visitors is the cornerstone of this policy. All our procedures, products and services will comply or exceed all applicable legal requirements related to Industrial Hygiene and Safety. • No work is so important or urgent: it must be executed in a safe way. • We will not place profits or production above safety and health.
Our Management In 2001, Bunge implemented the Industrial Safety Management System in all its Industrial Complexes. But since 2012, the Company has developed and implemented its own Global Industrial Safety and Hygiene Management System, adapted to the Company needs and applicable to all operating units in the world. Such System comprises 12 pillars of management:
• We will act fast to eliminate or control all high potential exposures. • We will use Bunge’s Global Safety Management System as a guide. • Safety-related performance is a key indicator of operating excellence. • All incidents, diseases, unsafe conditions and behaviors at work can be avoided. • We will promote safety outside the workplace and the well-being of our employees. • All employees are responsible for their own safety and the safety of others. • All levels of management and supervision must show a proactive leadership in relation to safety.
1 Leadership and Management 2 Skills and Knowledge Training 3 Planned Inspections and Maintenance 4 Procedures and Critical Tasks Analysis 5 Near miss/ Incident Investigation and Analysis 6 Tasks’ Behavioral Observations 7 Emergency Preparedness 8 Work Permits and Rules 9 Health Controls 10 System Assessment 11 Engineering Controls - Purchases and Contractors 12 Communication and Promotion
PRODUCING VALUE
The Global Industrial Safety and Hygiene Management System requirements are periodically assessed following a program of external and internal audits, which include anonymous verification interviews, revision of records, and a walk-through to observe physical conditions. The Safety, Hygiene and Environmental Corporate Management manages the aspects that constitute the policy using its Management System for all sites. ACTIVITIES THAT SUPPORT THE POLICY Emergency Brigades Every year, we carry out Emergency Brigades Meetings at Bunge Southern Cone, with the participation of representatives of brigades from each Industrial Complex and Grain Elevators in Argentina and Paraguay, and colleagues from Bahía Blanca Terminal and Terminal 6. During these meetings, brigade members, employees who have voluntarily trained for emergencies throughout the year, share the acquired skills on a particular subject. These sharing activities improve team work, which is a basic principle when it comes to a possible actual emergency. At the meeting, they discuss what to do and how to react in case of emergency and foster a preventive attitude with regard to safety by developing safe habits and responsible practices inside and outside the working environment, thus contributing to the development of a safer society.
Support to the Global Communication of HPE (High Potential Exposures) Campaign The first phase addressed in 2014 included communications and trainings involving three key messages:
Emergency Brigades are created in each one of the Industrial Complexes and Port Terminals of Bunge Southern Cone. “The importance of the High Potential Exposures campaign is to communicate all Bunge’s workers that they must be aware of the risks at all times and that they shouldn’t let the next task be the last one”. Carlos Nowik, Manufacture Director
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This phase is part of a global awareness and prevention program focused on 5 High Potential Exposures (HPE):
Work at Height
Hazardous Energy
MAIN ACHIEVEMENTS The Executive Committee of Bunge Limited has acknowledged the efforts of Bunge Southern Cone with the “Safety Award.” This award globally recognizes the operating unit that has excelled in Safety performance throughout the year and shown lower accident rates. This is the fifth time the company has received this award (2005, 2006, 2008, 2010 and 2013), which makes Bunge Southern Cone the most awarded Operating Unit in relation to Safety.
Mobile Equipment
Confined Spaces
Hoisted Loads
Safety Indicator A Safety Indicator made up of 7 indicators is monitored at different industrial complexes of Bunge Southern Cone. These indicators provide the information required to act proactively. These are comprised in a final formula which is used for benchmarking the performance against set standards, making it possible to identify the current management strengths and weaknesses. The ideal score for each indicator is 1 (maximum condition), the higher, the better, and the maximum condition is reached when 100% of the goal is achieved for each indicator. These 7 indicators are:
These account for more than 90% of serious injuries that have affected the lives of Bunge’s employees all over the world. The purpose is to help all employees recognize the HPE and follow the appropriate steps to eliminate or control them.
1. Training hours on safety, hygiene and environment. 2. Training hours of emergency brigades. 3. Number of 10-minute talks delivered (short trainings on awareness) by middle and upper management. 4. Implementation of Risk Warnings (detection of substandard conditions). 5. Compliance with corrective and preventive action plans derived from the investigation of incidents. 6. Amount of task behavioral observations. 7. Amount of meetings of the Internal Committee for Accident Prevention.
PRODUCING VALUE
Safety Indicator 2014 1.00
0.98
0.95
0.90
0.89
0.80
0.90
0.91
0.92
0.88
0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 Puerto General San Martín
Ramallo
San Tancacha Campana Jerónimo Sud
Bahía Blanca Terminal
Average 2014
ENVIRONMENT Environmental protection is one of our values and it goes beyond legal requirements. It is a crucial part of our strategic management directed towards sustainability.
BUNGE SOUTHERN CONE´S ENVIRONMENTAL POLICY Our Vision: Bunge will always conduct its business in such a way as to foster environmental quality. We are committed to the continuous improvement of environmental management in every area of the Company as well as to the betterment of the well-being in the communities where we operate. Our Commitment: To achieve these goals, Bunge has committed to the following principles: 1. Complying with environmental laws and applicable requirements to our processes, products, services and projects. 2. Promoting environment continuous improvement by means of the application of environmental management principles, through
the use of environmental risk assessments and measurements of environmental performance associated with the processes of our facilities, products and services. 3. Looking for a sustainable environmental development through prevention of contamination, reduction, reutilization and recycling of waste generated by our facilities, products and services. 4. Showing social responsibility, trying to satisfy the environmental needs of our communities and promoting the responsible use of natural resources. 5. Making employees participate in environmental sustainability initiatives and training them to improve environmental management practices.
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ACTIVITIES THAT SUPPORT THE POLICY Comprehensive Waste Management at Bunge Southern Cone At BSC, we manage our waste under the concept of “Comprehensive Waste Management,” which is based on the following fundamental pillars:
Reduction
Reducing the amount of waste. Preventing its generation.
Reutilization
Restoring, repairing equipment or parts; reusing packaging, reusing discarded materials from other processes.
Recycling
Treatment
Disposal
Transforming waste into new materials or products.
Reducing volume, stabilizing, reducing risks, etc. Disposing waste generated by the previous points or that cannot be managed in another way.
ISO 14.001 Certification Ramallo Industrial Complex, Argentina, obtained the ISO 14.001 Certification. ISO 14001:2004 is the internationally recognized standard for the management systems implementation aimed at the improvement of an organization in relation to environmental impacts. It contemplates the following operations: • Reception, storage, processing, sale and export of grains. • Production and export of soybean meals and crude oil. • Production and sale of Calcium Simple Superphosphate. • Reception, storage and sale of solid fertilizers. To improve environmental management at Bunge Southern Cone, we have the goal of obtaining the certification for other Industrial Complexes.
Environmental Investments In 2014, we invested U$S 3,146,900 in environmental management in Argentina. The main environmental investments are:
Thousands of U$S Puerto General San Martín Reduction of pollution in loading terminals Reduction of light consumption - Replacement of lighting fixtures Reduction of fuel, oil and gas consumption in boilers
35 20 75
Campana Catalytic converters renewal Improvements in rain effluent plant and treatment system
680 707
Tancacha Improvements in effluent treatment pools
200
Ramallo Laying of translucent sheets in fertilizers warehouses Extension of concrete parking lot in driers area
424 106
San Jerónimo Sud Effluents unification Reverse Osmosis Plant
50 285,4
“Bunge Southern Cone has a global environmental management system of its own, tailored to the specific needs of the Company and based on the requirements of ISO 14001”. Eduardo Mualem, Safety, Hygiene and Environmental Corporate Manager
PRODUCING VALUE
It is important to point out that environmental investments are made by the rest of the countries and Joint Ventures that make up Bunge Southern Cone. Measurement systems of this indicator are going through a development process.
U$S 3,146,900 were invested in 2014 to improve our environmental management.
Bunge Track Bunge added Bunge Track - or ARNOX 32 – to its portfolio, a new product that represents a sustainable leap for the automotive market. It is a liquid reducing agent of nitrogen oxides from combustion of diesel engines-essential to the implementation of Euro V and Euro VI protocols- which contributes to minimizing greenhouse gas emissions.
Bunge Track is a product of added value close to Bunge´s value chain. This means that its development was generated from research on the production process of foliar fertilizer and, from the reengineering of facilities, the adjustment for the production of Bunge Track was achieved.
MAIN ACHIEVEMENTS The following indicators show the environmental management of Bunge Southern Cone in its Industrial Complexes, without taking into account Joint Ventures, as their information is not available yet. It is important to point out that, with the exception of Joint Ventures, all Bunge Southern Cone´s industrial operations are carried out in Argentina.
To prove its performance regarding sustainability, the Company has proposed the setting of globally agreed goals to mitigate the main impacts generated by each ton it produces for the 2013-2016 period. 2014 measurements indicate the early achievement of the goals.
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GOALS 2013-2016
3% reduction of greenhouse gas emissions per ton produced
RESULTS
INDICATORS
MEASUREMENTS 2014
Exceeded. 3.5% reduction of emissions per ton produced in only one year. And total emissions were reduced 2.14% in a year.
Greenhouse gas emissions intensity per ton produced
94.81 kg CO2/ tn
Direct and indirect total greenhouse gas emissions per weight
- Direct emissions: 256,918 Tn CO2 - Indirect emissions: 117,008 Tn CO2 - Total emissions: 373,926 Tn CO2
Exceeded. 3.2% reduction of energy consumption in a year
Total direct energy consumption
4,478,508.43 GigaJoules
Total indirect energy consumption
791,679.11 GigaJoules
Total energy consumption
6,061,866.65 GigaJoules
3% reduction of energy consumption per ton produced
Exceeded. 35.8% reduction of waste generation index2 with respect to 2013. 5% reduction of waste with non-sustainable management
3% reduction of water consumption per ton produced
Exceeded. 6.8% reduction of water consumption indicator during the 2013-2014 period, which represents a reduction in the year to year consumption of 1,023,069 m3.
Waste generation index per Kg /Tn
0.2 Kg /Tn
Percentage of waste managed in a sustainable manner
90%
Total special waste
368.6 Tn
Total non-hazardous waste
7,776.5 Tn
Total waste
8,145,1 Tn
Water consumption per ton produced
4.456 m3/Tn
Total water consumption
17,575,453 m3
2 Kg of waste managed in a non-sustainable manner /Ton Produced. Ton Produced includes Crushing tons + Refined tons + Produced fertilizers tons + Shipped fertilizers tons.
PRODUCING VALUE
FOOD SAFETY, PRODUCT QUALITY AND SAFETY AND CONSUMER SAFETY AND HEALTH
Every day, Bunge contributes to the distribution of food to billions of people all over the world. A 70% increase in food production will be necessary to satisfy the needs of a population that is estimated to be 9 billion people by 2050. In accordance with the population growth, Bunge has set the goal to improve the global food production chain, from its origin to the consumer’s table: how food is grown, saved, processed, transported and distributed, to satisfy the needs of people, today and in the future, while it contributes to the preservation of the natural resources of our planet. Food Safety, Product Quality and Safety and Consumer Safety and Health are material aspects that make us think about how to efficiently meet dietary needs and specific preferences for an active and healthy life. MANAGEMENT APPROACH A number of regulatory frameworks for Food quality and safety are in place contributing to a smoother operation of business. Certification schemes allow organizations to trust processes of each and every link in the value chain. Bunge Southern Cone has a series of certifications on Quality and Safety Management Systems, which are adapted to customer and market demands.
GMP+ Standards have been drawn up to harmonize animal feed requirements for the purposes of ensuring quality and safety across the food chain. They are based on widely recognized principles concerning quality control, Hazard Analysis and Control Critical Points (HACCP). GMP B2 Standard is used for the production of raw materials for feed and feed additives, while B3 Standard is intended for port operation and commerce.
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Standard
Certified Operations
Procedures
GMP B2
San Jerónimo Sud Industrial Complex
• Production, storage and shipping of finished products, soybean pellets, sunflower pellets, and safflower pellets, soybean hull pellets, soybean meal, sunflower meal and safflower meal.
GMP B2
Tancacha Industrial Complex
• Production of soybean meal, soybean pellets, sunflower meal, sunflower pellets, safflower meal, safflower pellets and soybean lecithin.
GMP B3
Buenos Aires Trade Office
• Commercialization of soybean meal, soybean pellets, soybean hull pellets, safflower meal, safflower pellets and sunflower pellets.
GMP B2-B3
Ramallo Industrial Complex
• Production, storage and shipping of soybean pellets, soybean meal and soybean hull pellets.
GMP B2-B3
Puerto General San Martín Industrial Complex
• Reception, storage, production and shipping of soybean pellets, soybean meal and soybean hull pellets.
GMP B3
Hernandarias (Paraguay) Trade Office
• Commercialization of soybean meal and soybean hull pellets.
GMP B3
Bunge Agritrade (Uruguay) Trade Office
• Commercialization of soybean meal, soybean pellets and soybean hull pellets.
GMP B3
Montevideo (Uruguay) Trade Office
• Commercialization of soybean meal (2014 certification).
PRODUCING VALUE
The ISO 9001:2008 Standard, prepared by ISO (International Standardization Organization) determines Quality Management System requirements to be used by a company for internal application, regardless of whether the product or service is provided by a public organization or a private company, whatever its size, for certification or contractual purposes.
ISO 9001:2008 Certified Operations
Procedures
San Jerónimo Sud Industrial Complex
• Oil reception, conditioning and storage. • Production and shipping of meals, pellets and crude oil. • Reception of crude oil, production, storage and shipping of refined vegetable oils.
Tancacha Industrial Complex
• Reception of raw material. • Production, storage and shipping of soybean lecithin.
Puerto General San Martín Industrial Complex
• Soybean reception, conditioning and storage. • Crude oil reception and storage. • Manufacture, storage and shipping of crude oils, meals and soybean by-products. • Refining and shipping of neutral and refined oils.
Hazard Analysis and Control of Critical Points (HACCP) is a systematic preventive process to ensure food safety in a reasonable and objective manner. It is applicable to the food industry although it is also applied to the cosmetic and pharmaceutical industry and to all industries manufacturing materials in contact with food. In this process, all risks of contami-
nation associated with products are identified, assessed, and prevented at the physical, chemical and biological level across the supply chain processes, establishing preventive and corrective measures for control and for ensuring safety.
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HACCP Certified Operations
Procedures
San Jerónimo Sud Industrial Complex
• Reception and storage of crude vegetable oils.
Puerto General San Martín Industrial Complex
• Reception and storage of crude vegetable oil.
Tancacha Industrial Complex
• Production of food grade soybean lecithin.
• Refining, storage and shipping of bulk refined vegetable oils.
• Refining, storage and shipping of bulk refined soybean oil.
MANAGEMENT GOAL 2015 FSSC 22000 is one of the main certification schemes for food at a global level regarding food safety, since it is a certification scheme acknowledged by the GFSI (Global Food Safety Initiative). FSSC 22000 is applicable to all food products, food ingredients and packaging manufacturers, regardless of the size, sector and geographical location of the organization. The Standard FSSC 22000 is scheduled to be certifying vegetable oil refineries by the end of 2015 in vegetable oil refining plants of Puerto General San Martín and San Jerónimo Sud and lecithin plant of Tancacha.
EVALUATION AND MONITORING 60 internal auditors across the Company perform audits on our own certified quality systems. Such audits are scheduled at the beginning of each year, including verifications of our own Industrial Complexes and of associated third parties’ companies. Internal auditors were trained by Corporate Quality Management, and are annually trained on specific subjects, acquiring skills for auditing different business units, our own processes, and third parties’.
MAIN ACHIEVEMENTS 2014 • The Office in Montevideo obtained the GMPB3 certification. • All certifications obtained were maintained. • We supported the development of the Food and Ingredients Business Unit during its consolidation process.
100% of our Industrial Complexes certified under international quality standards. 60 internal auditors perform audits on the compliance of quality systems requirements.
PRODUCING VALUE
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VALUE CHAIN The graphic identification of our value chain allows the Company to define integration strategies to back
our customers and suppliers. At this point, Bunge Southern Cone classifies two types of suppliers:
EXPERTISE
R&D
FERTILIZERS
HUMAN RESOURCES
CITIZENSHIP
CUSTOMERS
AGRIBUSINESS
MARKETING AND DISTRIBUTION
MANUFACTURE
FOOD AND INGREDIENTS
SAFETY AND ENVIRONMENT
CURRENT VALUE CHAIN
• There are approximately 1,316 origination customers (key raw material suppliers for all business units) in Southern Cone countries (1,148 in Argentina, 30 in Uruguay and 138 in Paraguay). They are classified into natural persons and companies and into brokers and direct customers. At the same time, brokers have a great amount of customers within their respective internal portfolios. • Non-productive purchase suppliers, who provide goods and services to Bunge contributing directly or indirectly to support the productive system.
It is very important to highlight the influence of our organization over the development of regional economies. That is why 100% of critical supplies for the Origination Management are provided by local suppliers. In 2014, 95.6% of Bunge Southern Cone’s total purchases came from local suppliers.
STRATEGIC POSITION AND PROFITABILITY
IT
RISK MANAGEMENT
LOGISTICS AND SUPPLY
ORIGINATION
SUPPLIERS (CUSTOMERS)
BUSINESS UNITS
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“
The challenge facing agriculture in Argentina is to produce more and, at the same time, preserve the environment for future generations. The Company launched Propuesta Bunge to support this change process. Daniel Orjales, Fertilizers Director
”
MANAGEMENT APPROACH Argentina To get closer to potential yields and care for soil resources, the Company has launched Propuesta Bunge, a fertilization protocol based on more than 10 years of practices carried out with the guidance of important members of the sector, such as INTA, CREA, Fertilizar Asociación Civil, IPNI and UNRC, among others. In order to prove that we can increase the yield and profitability of soybean crops with an improvement in nutrients balance on the soil of farmers’ fields,
we generated a field net applying a fertilization protocol made up of two central concepts: a balanced fertilization that incorporates the three most limiting nutrients (phosphorus, sulfur and boron) and an increment in the dosage. To accomplish the latter, the key is to separate the fertilizer incorporation at seeding time, applying a 70% before scattering the seeds and the remaining 30% as a starter. This base fertilization is complemented by a boron formula in reproductive stages.
PRODUCING VALUE
The results were impressive, as we found average rises of more than 450kg/ha based on more than 30 trials throughout La Pampa region. In some areas, yield increase compared to the achievements of the farmer in the same plot exceeded the 20%. The results also showed that the yield improvements we can achieve with Propuesta Bunge have a regional variation from 8% to 19%. Furthermore, we found that the central and southwest regions of the Province of Buenos Aires were more responsive.
Northwest of La Pampa and Córdoba
North of Buenos Aires South of Santa Fe
8%
14% 18%
19% Southwest of Buenos Aires
Central West of Buenos Aires
13% Southeast of Buenos Aires
Paraguay In November, a lecture was held in Hernandarias in order to continue with the training program developed to address our customers’ needs.
of Novitas, lectured on fertilizers and grains markets in Paraguay, respectively.
More than 50 people attended the lecture, representing 27 companies. Jorge Bassi, Marketing Manager of Bunge Fertilizers and Diego de la Puente, Director
Uruguay At the end of 2013, Bunge Southern Cone sponsored the 3° Agriculture Symposium in Uruguay. It was organized by EEMAC (Estación Experimental Dr. Mario Cassinoni) and Agronomy School of Universidad de Paysandú. More than 450 people attended (producers, consultants and technicians). Industrial sector companies also participated and supported the initiative. During the second part, which addressed fertility and the use of fertilizers, the Engineer Ernesto Hoff-
man made a presentation called: “Nitrogen. We are adding more, but it is still not enough. Causes and consequences,” which showed works for the development of products supported by our Company. Furthermore, the event was a meeting point with customers, colleagues of the industry and technicians from official organisms.
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LEADERSHIP IN OPERATIONS Our operations in Southern Cone are not limited to the facilities or businesses of the Company. They also include joint projects with other leading companies. Our business partners, in many cases, choose to implement technologies, management approaches and business visions already used at Bunge.
Here, we share our partners’ opinions and standpoints on Bunge Southern Cone.
“Sometimes it is not easy to share partnerships, and it is even harder when you come from a family business, where you make decisions without any consultation. People at Bunge always let us negotiate and we never had to vote in favor or against an idea. Furthermore, Bunge has a very good presence in Argentina, and it is well-known outside Argentina, much more than AGD. This fact helps and strengthens us. We have an excellent relationship with all employees at Bunge”.
“I believe that the greatest benefits generated from the integration with Bunge are based mainly on the scale of Bunge’s production, and the international commercial structure that allowed us to develop new businesses and new markets. I think that the greatest contribution that Aceitera Martínez made to this integration is based on 70 years of experience in the commercialization of our product in the local market, the Roberto Urquía, General Representavalue of our brands”. tive of Aceitera General Deheza Damián Martínez, Partner of Aceitera Martínez SA
PRODUCING VALUE
“I consider that the results have been excellent from the very beginning of our activities with Bunge. The team that interacts with us are like friends. In fact, they are good friends. I believe that the reason that makes this story of success possible is the mutual trust we have with Bunge, as work teams of both companies complement each other very well”. María Paula Martínez, Partner of Aceitera Martínez SA
“I believe that one of the main benefits resulting from the partnership with Bunge is the possibility to access a scale that would otherwise be impossible. Bunge has a very professional team, and I think this is one of the most important points. The success of the business venture with Bunge is based on the fact that we do not compete but rather we complement each other”. Osvaldo Bertone, General Manager of Asociación de Cooperativas Argentinas
“We have received a continuous technical support from Bunge, and we thank their collaboration. We also achieved the commercialization of our products and the possibility to have an active presence in Bolivia without having to make excessive investments, as they offer benefits for all Nutriol´s facilities”. Jorge Arias, President of Nutrioil SA
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PRODUCING DEVELOPMENT
SUSTAINABLE AGRICULTURE AND ADAPTION TO CLIMATE CHANGE Nowadays, Bunge Southern Cone has two sustainable soy supply schemes: the 2BSvs certification, of French origin, and the traceability scheme that complies with the National Renewable Fuel Standard (RFS2) Program, recommended by the United States. The latter was implemented in 2013, due to the restrictions to biofuel import imposed by the European market. The RFS2 assures the traceability of biofuel produced in Argentina, according to the legal sustainability requirements established by the Environmental Protection Agency (EPA) of the United States Government.
- In 2014, 55 thousand tons of soy with sustainable soy certification (under RFS2 scheme) were purchased in Argentina, which represented 10 thousand tons of sustainable oil. - Simultaneously, the scheme used by Bunge Paraguay to certify sustainable soy is the previously mentioned 2BSvs of French origin. And because of its characteristics it can better adapt to logistic needs. This certification assures, mainly, that the sustainability of biomass and biofuel production can be proven, complying with the requirements of RED (Renewable Energy Directives) 2009/28/EC, for its use within the European Union. In December 2014, the certification audit took place at Hernandarias Trade Office, Grain Elevators Cruce GuaranĂ in the City of Corpus Christi, Grain Elevators Curuguaty in the City of Curuguaty and the lands of some producers. At the end of this year, the certificate arrival was expected, to confirm the production of sustainable soy in the aforementioned country.
PRODUCING DEVELOPMENT
SUSTAINABLE SOY IN SOUTH AMERICA Together with The Nature Conservancy (TNC), Bunge will support the development and the adoption of tools that back the decisions to integrate environmental, economic and agronomic data. This data will help the private sector to put non-deforestation policies into practice and foster the sustainable use of soil. Bunge will support the trials of these tools
in agricultural regions near Bahía Blanca, the Southeast of La Pampa and Southwest of Buenos Aires. In these areas, problems related to wind erosion, low productivity, loss of nutrients, desertification and migration of rural inhabitants to nearby towns have been detected.
COMMUNITY DEVELOPMENT OUR TIES WITH THE PLACE WHERE WE WORK Sustainable Development is an inclusive concept. There is no business development without social development. At Bunge, we place our emphasis on listening and responding to local needs of the communities where we work.
MAIN PROJECTS IN EDUCATION
We focus on managing on a collaborative basis: Education, Health, Healthy Nutrition, Social Investment, Environment and Human Rights. To generate projects that contribute to the solution of the real problems of communities, Bunge Southern Cone fosters strategic alliances with Civil Society Organizations. This is how, together with Reaching U and Fe y Alegría from Uruguay, Fundación Bunge y Born, 1 Minuto de Vos and Fundación Leer from Argentina, Cruz Roja Paraguaya and Sociedad Paraguaya de Infectología from Paraguay, among other institutions, we have faced the challenge of supporting the growth and development of local communities.
“Generating projects that contribute to the solution of real problems of the communities where we operate is our greatest challenge”. Walter Savarecio, CPO and Communications Director
Bunge Award to Academic Excellence After 8 years of history, the award recognized more than 1200 children, teenagers and young people that excelled in the communities of Puerto General San Martín, San Jerónimo Sud, Tancacha and Ramallo in Argentina and Curuguaty and Naranjal in Paraguay. Because of its impact, this program received a recognition for its commitment to promote local education in Naranjal (Paraguay).
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Socio-Educational Support To allow 70 teenagers to end their studies in the town of 18 de Mayo, Canelones, Uruguay.
Rural Education: Programa Sembrador For over 37 years, Fundación Bunge y Born has been carrying out “Programa Sembrador de Ayuda a Escuelas Rurales” of the Argentine Republic, and has benefited over 750 institutions. Bunge has been committed to strengthening rurality since 2007. Thus, both institutions work together to play a compensation role that aims at ensuring the right to education.
Reading Marathon For the second year in a row, Bunge has contributed with this initiative of Fundación Leer. We brought together 4 educational institutions, and the community as a whole, from San Jerónimo Sud (Argentina). This institutions received a donation of 4 “Reading Corners” made up of 100 books each. The purpose of this event is to make a contribution to improve education, claiming that together we can develop a country with high literacy levels, so that more children can have access to books and learn the joy and value of reading.
“Games in the Preschool Classroom” in Ingeniero White (Argentina) This educational program began in 2011. It addresses different tasks, such as training for teachers on the importance of games in the development of our children, donation of photo cameras to record the activities and games, construction and dramatization, among other activities. All kindergartens of this place were benefited.
Scholarships for Nursing Students Since 2012, 90 scholarships have been granted to Nursing Students at ISPI (Hospital Italiano) and Cruz Roja in Rosario, Argentina. Under the principle that nurses save lives and are critical human resources in the health area, promoting their training means improving the quality in health care services.
PRODUCING DEVELOPMENT
MAIN PROJECTS IN HEALTH
Chagas: from knowledge to action Distance learning sessions for doctors, professional nurses and biochemists to provide training on daily resolution of problems generated by Chagas. 80 scholarship-holding health professionals attended, from different places in Paraguay.
Good Nutritional Practices Since 2010, the Company has supported research developed by the Agribusiness and Food Program of Facultad de Agronomía of Universidad de Buenos Aires (Argentina) within the framework of the Good Nutritional Practices Program.
Training Sessions on Pharmacosurveillance It was designed for local authorities and health professionals from Tancacha (Argentina) and neighboring places. Pharmacosurveillance is an important tool for the development of health professionals, as its purpose is to detect, asses, understand and prevent adverse effects and other issues related to medications.
MAIN SOCIAL INVESTMENTS AND CORPORATE VOLUNTEERING
MAIN PROJECTS IN HEALTHY NUTRITION
Padre Novoa Educational Center Corporate Volunteers from Montevideo Trade Office painted and carried out maintenance tasks at this educational center, where 350 children and teenagers attend in El Dorado (Uruguay). Nutrition at School Learning sessions on good eating habits for teachers. Its purpose is to contribute to the adoption of healthier habits and to foster a proper nutrition for children, so they can learn and grow better and have a decent childhood and adulthood. In 2014, this activity was developed in Bandera (Argentina) and in Naranjal (Paraguay). “A different Christmas time” With the help of corporate volunteers that donated their time and efforts, we achieved the goal of delivering gift baskets for Christmas for 500 families in 4 places of the Province of Buenos Aires (Argentina). Furthermore, Bunge donated more than 800 liters of oil.
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MAIN PROJECTS IN ENVIRONMENT
I visited Bunge It’s the proposal through which Bunge opens the doors of its industrial complexes and grain elevators to boost the community’s education, and thus, introduce them into its processes: quality management, hygiene and safety, and environment while presenting the productive potential of the area. Furthermore, in Bolivia, Bunge is associated with Cámara de Industrias, Comercio, Servicios y Turismo (CAINCO). Thanks to its collaboration and intervention, the Company has been able to proactively relate to local government organisms, as Caja Nacional de Salud. Additionally, they provide consulting services, legal updating, and training, among others. In the case of Uruguay, government officials visited two of our Industrial Complexes in Argentina to get to know their operations and analyze the local impact of the development of the Paraná-Paraguay waterway.
U$S 572,905 were allocated to social investment projects and donations in the communities where Bunge operates.
Vegetable Oil Recycling Program The Vegetable Oil Recycling Program was launched in 2013. The purpose of the initiative is to foster a sustainable management of waste generated by the consumer when using these products. The first stage of the program included the internal population of the Company, calling its employees and cafeteria workers to voluntarily join the project by delivering used vegetable oil. In 2014, we communicated the extension of the program to the communities near our areas of operation, which would be implemented the following year.
PRODUCING DEVELOPMENT
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PRODUCING TALENT
HUMAN RIGHTS AND DIVERSITY At Bunge, diversity management comprises all those policies and practices intended to generate participation contexts which consider the needs and include the wide variety of actors that interact with the organization.
91% of employees in Bunge Southern Cone consider that the Company offers a working environment where differences are respected, whether cultural or related to lifestyle. While 89% consider that differences between genders are respected. Work opportunities for people with disabilities are not abundant, and are even less for intellectually disabled people. In spite of this fact, the right to work for disabled people is a right protected par excellence, and it is promoted by local legislations.
The “Commitment Program” (Programa Compromiso) of Bunge Southern Cone is based on these premises and, within its corporate and social responsibility management, it offers work opportunities for this part of the society. To assure the proper inclusion of intellectually disabled people, the Program is based on the “Employment with Support” methodology. It offers beneficiaries the possibility of self-determination, which is the core of inclusion, and they are assisted through task adaptation, learning faci-
litation, training, and continuous accompaniment throughout the course of the Program. Apart from the job creation, the Commitment Program is an awareness and broadcasting program related to the importance of incorporating disabled people to working environments and its positive impact inside organizations. Another core concept of the Commitment Program is to hire non-productive purchase suppliers that show commitment to the respect for people with different skills, diversity and employment protection for disabled people.
“Since the Commitment Program implementation in 2012, 9 intellectually disabled people have been incorporated to our Company in 5 different work sites. We can assert that diversity management has strengthened positive, conscious and supporting relationships among coworkers”. Walter Savarecio, CPO and Communications Director
PRODUCING TALENT
ETHICS AND TRANSPARENCY
Working with the highest standards of ethics and integrity is what makes our customers, shareholders, employees and everyone else trust us and our future: This is essential to our reputation, no matter where we operate. Bunge Southern Cone has established and maintained corporate government processes that aim at management transparency and risk control, based on the most recognized, tried-and-true global practices. Bunge’s Ethics Hotline is a key management mechanism for detecting inappropriate behaviors, ensuring confidentiality, as it is managed by a specialized independent provider. The Ethics Hotline is easy to use and is always available, whether through its website of by phone. Bunge’s employees can contact at any time to report cases as follows: inappropriate use of the Company’s information, fraudulent financial reports, inappropriate accounting procedures, acceptance of inappropriate gifts, bribes, or illicit commissions.
In 2014, 843 employees completed a course on Bunge’s new Code of Conduct; while 99 employees were trained on the anti-corruption policy. In 2014, Bunge updated its Code of Ethics, which is now known as Code of Conduct. It was designed to be a guide to help employees understand their responsibilities, to achieve an ethical and legal business management, assuming the commitment to observe the standards established by the Code of Conduct, essential for the success of present and future operations. The Code stipulates rules to: avoid and prevent conflicts of interest: personal investments, corporate opportunities, commercial relationships, gifts and bonuses, confidential information, acquisitions, loans and gifts from other companies; comply with applicable laws and regulations; act with honesty
and integrity; protect and use Bunge’s assets in a proper manner; and, the interaction with suppliers, consultants, agents, representatives, governments, among others. That is why Bunge adopts an Anti-Corruption Compliance Policy that firmly rejects bribery and corruption within the framework of these interactions. To consolidate our management towards transparency, SOX (Sarbanes Oxley Law) contemplates corruption-related risks assessments. The revision includes the following: entity level Controls, Financial Reports, Human Resources, Taxes, Receivables, Payables, Trading, Treasury, Inventory, Assets and Equipment. Given the importance that both mechanisms have for the integral and transversal management of the Company, a series of internal and external communication actions were developed to ensure its impact and scope. Before its execution, the Executive Committee from Bunge Southern Cone validated the plan and received the corresponding training.
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ETHICS HOTLINE Phone: • From Argentina: 0800-444-6696 • From Paraguay and Uruguay: dial AT&T Direct code and then from Paraguay 008-11-800 and from Uruguay 000-410
employees, making them commit to the organization culture and strengthening internal talents. To achieve these goals, it creates learning and training programs and spaces, and assesses its management through a survey on working environment. TRAINING TALENT
WEB: Visit: https://bunge.alertline.com
It is important to emphasize that the relaunch of the Ethics Hotline and the update of the Code of Conduct were presented as an item of the agenda during the Getting to Know our Company Program (an introductory program for young professionals), the Annual Management Meeting and the Annual Meeting with the CEO. By means of the Intranet, the internal publication magazine and the web were maintained and the messages transmitted throughout the communication campaign were reminded. MAIN ACHIEVEMENTS • All Bunge Argentina’s business units are covered by risk controls under the Sarbanes Oxley Act. • There are no recorded acts of corruption related to our employees. • All employees received the Code of Conduct in print and a brochure with all the updated contact information of the Ethics Hotline. Furthermore, they were invited to participate in an online theoretical/practical training, for which they were notified through their personal e-mail. • In 2014, the Company had no significant cases of non-compliance with the existing laws.
Training and Continuous Education Bunge Southern Cone understands the need and the challenge of stimulating the creativity of its
Bunge Talent School It is our internal school for developing management skills to face the challenge of managing the professional future of its Human Capital. The objective is –by means of ad hoc virtual and on-site trainingsto ensure that employees have the necessary tools to strengthen their abilities according to the current and future requirements of their roles. In 2014, the Company expanded its portfolio of available classes and the sites where they are given.
“The decentralized management model that the Company follows in relation to its Human Capital gives employees the necessary freedom and autonomy to make an impact on the business from the beginning of their careers”. María Eugenia González, Talent Management Manager
Business Cases By applying the action learning technique, this plan encourages teams to develop a fieldwork which allows them to put contents learned in previous trainings into practice. That fieldwork studies real business cases and has the support of a leader who acts as a sponsor of the project, helping in the generation of networks, correction of errors and supply of information. The final product of the team is an implementation proposal, solution, or plan in response to the business case provided.
PRODUCING TALENT
BUSINESS CASE 2014: TÍO KIKE II An acquisition project of a new convoy was set out. The goal of the team: analyze the strategic, operational and economic feasibility. The self-managed team was made up by employees from Bunge Argentina and Bunge Paraguay. “I believe that the activity was very beneficial, for the work team and for the Company. The participants, many of them not related to the logistics area, had the chance to get involved into a real case that the Company is analyzing, and this implies a different and rewarding experience that allowed them to learn about a completely new matter. Bunge benefited from the initiative because the participants did not belong to the group that was working on the project, so they had the freedom and open-mindedness to analyze all possible variables and alternatives, without the natural restrictions of those immersed in the activity that lead the actions to the goal. The conclusions reached, with solid data and arguments, helped us review the strategy we had planned and make the corresponding changes”. Horacio Moretti - Supply and Logistics Director, Bunge Southern Cone
Individual Development Plans (IDP) The implementation of this tool aims at continuing to build an ongoing learning and development culture, and at helping its employees to strengthen their knowledge, skills, and competencies. Each of these plans reinforces the concept of each employee being responsible for their own development, and their boss acts as a coach along the process. Employees identify the strengths and opportunities of their development, they also share their career aspirations, and outline a plan to reinforce those strengths and develop in other growth areas. Executive Coaching The Company considers coaching as a powerful tool for the development of skills. It consists basically of helping employees obtain the best potential development possible and turning their “know” into “know-how.” For this reason, Bunge makes executive coaching available for management. Global and Internal Job Posting Bunge promotes the internal mobility of its employees. Therefore, it provides the opportunity to express their interest in a career development, in any area and any location within the Company. Additionally, there is an online global job posting platform in place. The main purpose of this tool is to offer more visibility and transparency to the international organizational mobility process.
INTERNATIONAL ASSIGNMENT: IGNACIO ESPÍNOLA, TRADING ASSISTANT
Getting to Know our Company This on-site training activity has been conducted for 8 years. It has a two-day duration in which attendees are provided with a quick vision of our Company, including its history, organization, operating and commercial management.
“I joined the Company in 2012 within the framework of Trainees Program in Uruguay. Afterwards, I worked in different places: Rosario, Puerto General San Martín, T6, Guide, Ramallo, Campana, Bahía Blanca, Necochea, Uruguay again, United States, Barcelona and Geneva. It was very interesting to be in so many different offices and countries, the experience and interaction were fascinating. You get to know people with very different cultures and you can build friendships and relationships in the workplace. It is not just a visit to these countries. At Bunge, we have a continuous movement of people in different areas, and that is why a great cultural exchange is created”.
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International Assignments It is a development tool intended to promote experiential learning. Bunge Southern Cone, being part of a global structure and having a decentralized -but at the same time, integrated- management style, offers special assignments in other Bunge’s affiliates in the world to strengthen the professional development of its employees. Participation in Special Projects Within the framework of a philosophy of permanent commitment to progress and continuous investments in our locations, Bunge Southern Cone invites all its employees to participate in challenging innovating high level special/specific projects, with national or international projection, and which constitute valuable personal and professional experiences. Visiting Auditor Program Participating in this initiative enables the participant to acquire knowledge and experience in other areas, reviewing similar working approaches in other regions – either national or internationaland other segments of business. This is a program led by the Global Auditing Area, where employees are invited to perform as “Visiting Auditors” on a specific assignment. Bunge’s Finance Academy This online and on-site tool was created to train 450 people in the next 3 years on subjects related to corporate finance and purchases. Focused on the development of talent in critical functional areas, the Company offers the possibility to attend 8 classes to learn about basic and specific financial concepts, necessary for the management of each role. The main goal of this tool is to give greater visibility and transparency to the international mobility process of the organization. Language Training Program The purpose of this program is to allow employees to develop the necessary skills, incorporate or improve their oral and written communication skills and interpret information in foreign languages, to improve their performance in current or future positions. SELF- DEVELOPMENT AND PERFORMANCE Managing performance implies certain clarity in the communication of expectations, goals and skills. To assure this process, Bunge’s employees must put themselves in the leading role of their own careers, their performance and self-development, and with a supervisor, they must agree on a Performance Plan.
For these assessment processes, Bunge developed an online platform called people@bunge that offers employees access to their own career development and performance information.
Performance Management Program It was designed to plan, analyze, evaluate, strengthen and reward individual management, clearly determining and establishing the expected results of individual performance, ensuring alignment with the Company’s objectives. The program has three stages: objectives record, a midyear revision, and closure at the end of the year.
100% of employees participate in the Performance Management Program. Performance management processes are offered through specific trainings that guarantee the proper education of the participating parties: the supervisor and the person supervised. These programs are: Constructive Feedback One of the main aspects of this program is the feedback opportunity generated between the boss and the employee. Bunge Southern Cone promotes and trains its leaders to correctly provide feedback. Through this methodology, it helps to build a trusting relationship between them, and generates a positive and constructive impact on the employees’ performance. Calibration The Company has a tool named Calibration to constantly strengthen the Performance Management Program and to ensure consistency in its applicability. It basically consists of a process through which it shares common guidelines with the process leaders to ensure they build on balanced and standard grounds. 360° Assessment It is a multi-feedback tool used for the professional development. It is based on receiving feedback from a diverse group of people that work with the employee on a daily basis, including the Supervisor or Direct Manager, Reports or Direct Subordinates, Coworkers or Peers, and internal or external people in touch with them.
PRODUCING TALENT
PROGRAMS TO ATTRACT TALENTS
WORKING ENVIRONMENT
Attraction of talent is, to Bunge Southern Cone, a critical aspect for its operations. The Company uses two proven tools to assure the scope, coverage and efficiency of the attraction of talents: our Programa de Trainees (Trainees Program) and Presentá a un Amigo (Bring a Buddy).
Every two years, Bunge globally performs a survey on its work environment by means of a tool called “Bunge Employee Survey.” In 2014, Bunge Southern Cone participated in this action to keep on assuring the employee’s alignment with the goals of the Company, and to look into the level of commitment and motivation to attain a better performance.
Trainees Program It has been developed in Bunge since 2002. Nowadays, it is an ongoing and powerful tool that allows recruiting young professionals who choose the Company to start their professional career and show their knowledge. This initiative consists of the process of recruiting trainees with high development potential, to foresee the coverage for future positions required by different area managements, by simultaneously training and developing resources.
Bring a Buddy It is an external recruiting program through which employees, who feel proud of belonging to an international company, act as a link between their local reference group and Bunge’s hiring needs. This mechanism turned out to be very efficient for the creation of a favorable working environment; that is why 86% of the employees say that they would recommend Bunge as a good place to work3.
3 4 5
With a local participation level of 84.4%, exceeding the average rate of answers4, results have shown a substantial improvement since its last survey in 2012: 12 out of 14 categories are more favorable. Furthermore, the main strengths were: operating efficiency, diversity, sustainable commitment, working conditions and safety; and the main areas of improvement were: communication, career development and training, leadership and culture, and performance management. As a work plan, we communicated the results obtained to employees at different stages and we expect that, during 2015, we will be able to identify two priorities per level (country and work site) so that we can define the actions we will take to keep on improving our work environment, foster a greater participation of employees and strengthen the organizational commitment, and assure the well-being and satisfaction in the workplace.
86% of employees say that they would recommend Bunge as a good place to work.5
Results of the 2014 Survey of Bunge’s Employees. Global average rate of answers of 80%, according to a source of the consulting agency Towers Watson. The weighted information coming from 72 companies in Argentina, refers to an average of 78% for this indicator, according to a Sustainable Commitment Survey provided by Human Resources consulting agency Towers Waltson.
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CITIZENSHIP / 2014 REPORT
ABOUT THIS REPORT Our Agenda with Stakeholders The purpose of the definition of a sustainability strategy for Bunge Southern Cone is to achieve the involvement of stakeholders and the harmonization of sustainability goals, actions and information throughout the value chain of the region. Based on an interview process with stakeholder groups, Bunge Southern Cone has defined three medium-term strategic sustainability visions (20152018) related to: - Establishing sustainability strategies and actions consistent with the organization´s strategy, and as a consequence, suggesting goals with an impact on different areas of the organization. - Having processes so that stakeholders can get involved and establishing commitments that can be overseen by management systems.
Furthermore, our context analysis indicates that sustainability planning is key along the value chain (origination, suppliers, customers, business partners) and shows the importance to focus on the integration of all Bunge Southern Cone’s operations, which implies the harmonization of shared information on sustainability goals and actions.
We are interested in creating an active bond with different institutions or “think tanks” dedicated to develop public policies related to the industry and to corporations in general, that is why Bunge Southern Cone participates in them, not only as a partner, but also as an active member of their Boards of Directors. In 2014, the monetary value of our contributions to think tanks amounted to USD 212,458.81.
- Having mechanisms deployed for the measurement and control of key sustainability issues.
Interviewed Stakeholders The diagram shows the stakeholders interviewed in the different countries that make up Bunge Southern Cone.
Shareholders
Customers
Corporate Citizenship
Employees
Competitors Corporation
STAKEHOLDERS
Corporate Groups Suppliers
ABOUT THIS REPORT
Contact Information For comments or suggestions regarding this report or its contents, please contact: Victoria Joffre CSR Coordinator victoria.joffre@bunge.com or relaciones.comunidad.bar@bunge.com Madres de Plaza de Mayo 3020 5to. piso, (CP: 2000), Rosario, Santa Fe +54(341)5123300 Bunge Argentina Office, 25 de Mayo 501 (CP: 1002) City of Buenos Aires, Buenos Aires. For more information regarding the Citizenship Report 2014, or previous reports, please visit: www.bungeargentina.com www.bunge.com.py www.bunge.com.uy
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CITIZENSHIP
BUNGE SOUTHERN CONE PRODUCING TOGETHER
2014 REPORT