Sustainability Report
For more information: www.PRONACA.com Comments: responsabilidadcorporativa@PRONACA.com
2
Agricultural Research and Development Center at La JoseďŹ na, Province of Guayas.
Table of Contents Introduction About this report
5
Message from the Board
6
Our Company
7
Philosophy
8
Organizational Structure and Corporate
9
Governance
Economic Balance Financial Management
Operational Center Certifications
37
Achievements and commitments
39
Biosafety
40
Animal welfare
40
Organizational Development Human rights enforcement oversight
41
PRONACA co-workers
42
Continuing education
43
Fringe benefits
45
“Golden Roosters”
47
Achievements and commitments
49
11
INAEXPO
15
Rural Area Fields
19
Achievements and commitments
23
Environmental Balance Environmental Management
25
Clean development mechanisms
25
Environmental management indicators
26
High-impact environmental initiatives
27
Recycling
27
Achievements and commitments
29
Occupational Health and Safety Aculture of risk prevention
50
Health promotion
52
Generating dialogue and relationships with stakeholder groups
53
Positive relationships with communities
55
Well-being and health with neighboring communities
56
San Luis Foundation
57
PRONACA committed to education
58
“It’s Never Too Late to Learn” Program 59 Food Bank
59
Volunteering
60
Achievements and commitments
61
Social Balance GRI Indicators
Product Responsibility PRONACA’s commitment
31
A company that listens
33
Verification Letter
62
Contact, complaint, and claims center
34
Indicators
65
Quality and Food Safety Control systems
35
Food safety control
36
4 4
Farmers in rice plantation, Guayas Province
Introduction ABOUT THIS REPORT This is the fifth Sustainability Report presented by Procesadora Nacional de Alimentos, PRONACA. It contains relevant information on the economic, social, and environmental impacts of our business during the year 2011. This report has been prepared in accordance with the recommendations and parameters of the Global Reporting Initiative (GRI) and Global Pact, fulfilling the principles required by the GRI, performing an A+ GRI CHECKED, and with a third-party verification performed by Deloitte & Touche.
In terms of coverage, this document contains complete information on the performance and results of 2011. This edition has relevant indicators about the business of PRONACA and INAEXPO in Ecuador. INAEXPO is PRONACA’s company in charge ofits export business, with PRONACA being its sole shareholder. This report is the product of a sustained collection and structuring of information, as well as of direct dialogue with stakeholder groups of the Company. The
financial
information
reported
is
based
on
International Financial Reporting Standards (IFRS) required by the Superintendency of Companies of Ecuador.
The financial statements for this report have been verified by the independent auditing firm of Deloitte & Touche for the reported period. According to the principles of completeness and materiality defined by the Global Reporting Initiative (GRI), this report does not report 20 performance indicators. The reason for this exclusion is that they are not applicable to our activity or to certain processes. The contents and information on this report may also be accessed on our website.
www.pronaca.com
Introduction MESSAGE FROM THE CHAIRMAN OF THE BOARD AND FROM THE CHIEF EXECUTIVE OFFICER Dear Friends We are pleased to deliver the fifth Sustainability Report from PRONACA. This document covers an integral vision of the activities we conduct in our organization. The report deals with the economic, environmental, and social aspects of our business. Each one of the chapters presents information related to our co-workers and other stakeholder groups with which PRONACA has on-going relationships. The most noteworthy fact in this report is PRONACA’s role in promoting development in agriculture and as a supplier of quality food for all members of Ecuadorian society. A very important aspect of PRONACA’s business model is its development of integrated farmers that work with us not only with corn and ricebut also with broiler chickens, artichoke, and heart-of palm. In essence, this integration system consists of helping the farmer obtain the necessary credit and ensuring a market for his products. In addition, we establish a cooperation triangle betweenthe credit, the farmer, and the delivery of his crop at agreed-upon prices, while some funds are retained in order to pay back his loans. This integration system produces a win-win situation for the farmer, for agriculture and for agroindustry, whereby all parties obtain a reliable market based on a reliable vendor. In this manner we can build lasting, long-term relationships where everyone wins.
For over 25 years PRONACA has been a company that exemplifies its commitment with the goals of food safety and food sovereignty. It is very important for Ecuador to know how to feed itself. There are farmers in the fields to whom we can teach new technologies through agricultural extension programs that should be carried out by both the public and the private sectors. There are fertile lands and there is a climate that allows many products to be harvested, such as corn and rice, among others. We should highlight the support we provide to corn farmers through the incorporation of new technologies, with quality seeds and technical processes so that, through our joint efforts we may all achieve the goal of turning Ecuador into a country that is self-supplying in corn by the year 2015. All of this while simultaneously taking care of nature for future generations and meeting all the environmental regulations adopted by the government. The work performed by our co-workers and with communities in the areas near our operations, also deserves a special mention. We are convinced that the only path towards mutual growth and success is one in which the Company, with its entire staff, together with its suppliers and clients, is the only way to ensure a future for all us. We trust that by reading these pages you will obtain a perspective of the work performed by a company that prides itself in being Ecuadorian and that strives to play a positive role in Ecuador’s present and future.
Sincerely,
6
Luis Bakker Jr.
Juan Ribadeneira E.
CHAIRMAN OF THE
CHIEF EXECUTIVE
BOARD
OFFICER
PRONACA Co-workers, Inverna Building, Quito.
OUR COMPANY In 1957, the INDIA Company was founded, a pioneering company in the Group, dedicated to importing agricultural products. It grew in the poultry industry with incubation, and commercial egg trade, and later through seed research and production. PRONACA was founded in 1979 as Procesadora Nacional de Aves, whichin 1999 became Procesadora Nacional de Alimento.
During the 90’s, it diversiďŹ ed its production in meats and other foods, and began exporting canned heart-of-palm. During the new century, PRONACA has taken its production and marketing model for heart-of-palm to Brazil, and its processed products to Colombia. Presently, PRONACA is a proudly Ecuadorian company that nourishes people well and generates development in the agricultural and livestock sector, with social and environmental responsibility at heart.
Introduction PRONACA’S PHILOSOPHY Purpose
Values
PRONACA exists to nourish people well and generate development in the agricultural and livestock sector.
Integrity, Solidarity, and Responsibility.
Principles Suppliers
Consumers
PRONACA believes in and practices respect for its suppliers, to whom it offers a fair profit in every negotiation within a framework of ethical behavior. It fosters compliance with the law along with socially responsible behavior.
PRONACA, as its main responsibility, provides innovative, healthy, and quality products that nourishes its consumers well, and which contribute to the well-being and satisfaction of their families.
Co-workers
Society
PRONACA leads its co-workers through example, which is to be competent, fair, and ethical. It has a commitment with solidarity and is respectful with the well-being of each and every one of them, and it does not tolerate dishonesty. It recognizes talent and offers fair remuneration. It fosters teamwork and delegation with responsibility in working conditions of cleanliness, order, and safety.
PRONACA, in agreement with its corporate social responsibility outlook, conducts itself as a good citizen, always seeking to form the best relationship with various stakeholders in an atmosphere of harmony and collaboration. It shares its experience and know-how in order to contribute to the development and quality of life within the area of influence of its operations. It encourages civic commitment and pays all of its taxes. It is respectful and practices solidarity with all persons and with care for environmental balance.
It offers equal employment opportunities, career advancement, and promotion to all co-workers who are qualified for it. It motivates and accepts suggestions and recommendations from its co-workers for the good of the Company.
Clients PRONACA works together with its clients in order to always offer quality products. It is innovative with its processes and products in order to lead in the markets in which it is present. It answers its clients’ requests in a quick and through manner.
8
Associates PRONACA acts responsibly with producers and entrepreneurs. It invests in research and development and creates innovative products. It shares its philosophy and creates business opportunities for its associates with whom it maintains a close, fair, and mutually beneficial relationship.
ORGANIZATIONAL STRUCTURE AND CORPORATE GOVERNANCE At PRONACA, the supreme governing authority is the
The operation and structure of these two government bodies
General Stockholders Board, which meets in Ordinary and
are depicted in the Incorporation Charter of the Company,
Extraordinary General Board Meetings comprised by legally
and fulfill all mandates of the control agency known as the
summoned stockholders. The General Stockholders Board
Company Superintendency of Ecuador. There are in addition,
meets at least once a year to address matters pertaining to
internal regulations that govern the operations of the Board.
the management of the Company. PRONACA has several executive committees that execute The Board is elected by the General Stockholders Board
and provide follow-up to the various business strategies within
and comprises the highest administrative authority, and
their competencies. This corresponds to an organizational
has three external Directors. Among its responsibilities is to
structure designed to adequately manage the risks and
make decisions concerning financial, economic, and policy
opportunities associated with the business.
approval issues that govern the organization.
PRONACA in Ecuador
ESMERALDAS
TULCÁN
ESMERALDAS
CARCHI IBARRA
IMBABURA PICHINCHA
NUEVA LOJA
SANTO DOMINGO DE LOS TSÁCHILAS
SUCUMBIOS
QUITO SANTO DOMINGO FCO. DE ORELLANA
MANABÍ COTOPAXI
ORELLANA
NAPO
PORTOVIEJO LATACUNGA
LOS RIOS
AMBATO
BOLIVAR BABAHOYO
TENA
TUNGURAHIUA
GUARANDA
PUYO
RIOBAMBA
PASTAZA
GUAYAS SANTA ELENA
CHIMBORAZO
GUAYAQUIL
SANTA ELENA
MACAS
MORONA SANTIAGO
CAÑAR AZOGUES CUENCA
AZUAY MACHALA
PRODUCTION ACTIVITITES
EL ORO ZAMORA CHINCHIPE LOJA
INTEGRATED
ZAMORA
LOJA
DISTRIBUTION NETWORK REGIONAL OFFICES EDUCATIONAL CENTER
10 10
Transparency is one of the main pillars at PRONACA.
Economic Balance
3,026
suppliers
196
suppliers
in the Inclusive Integrated Program.
nationwide.
94%
of all
suppliers are domestic.
SOLID AND TRANSPARENT FINANCIAL MANAGEMENT PRONACA maintains a strong commitment to local and national development. Clear and reliable balances are the calling card of PRONACA in Ecuador. The committed work of thousands of co-workers, along with the trust expressed by its stockholders, forms the basis for its sustainable development.
These economic figures correspond to the general financial statements of our company as of December 31, 2011, respectively.
Balance Sheet at December 31, 2011 (Expressed in thousands of US Dollars)
Current Assets
264,019
(+) Net Properties, plant, and equipment
179,768
(+) Other assets
105,057
= Total assets
548,844
Current liabilities
130,365
(+) Liabilities and long/term provisions
127,346
(+) stockholder equity
29,.133
= Total liability and equity
548,844
Comprehensive results for years ending (Expressed in thousands of US Dollars) December 31, 2011 Net Sales (-) Costs and expenses
728,863 681,072
= Profit before co-worker profit sharing and income tax
47,791
(-) Co-worker profit sharing and income tax
14,426
= Net Profit
33,365
* For the purpose of this Sustainability Report, we are presenting co-worker profit sharing in detail as well as individually.
Economic Balance
Taxes paid in 2011 (In thousands of US Dollars) Added Value Tax 窶天AT Expense
7.166
Custom Duties - Imports
1,834
Income tax expense
8.244
Tax on outward foreign exchange
2.945 29
Tax on rural land
917
Municipal tax Total
Employer contributions (In thousands of US Dollars)
4,139
Administrative employer contributions
1,360
Total
Agricultural Corn Integration and Extension Program, Province of Los Rテュos.
Year 2011
Production employer contributions Commercial employer contributions
12 12
21,135
1,761
7,260
PRONACA’s growth goes hand-in-hand with its suppliers’ development. Suppliers are an essential part of PRONACA’s production
During 2011, PRONACA consolidated a work process focused
chain. The provision of quality raw materials and inputs
on formalizing smaller suppliers. The Company achieved
represents a process that generates sustainable business
more secure and consistent business deals by eliminating
opportunities, which is concentrated at the local and national
only occasional deals. This initiative concentrated such
levels. The adequate mechanism of vendor selection,
efforts in Bucay (Coastal Regional Office) and in Santo
qualification, and registration, results in the development of
Domingo de los Tsáchilas. Practices considered comprise
those who provide services, inputs, and raw materials.
mainly labor, environmental, and health and safety norms.
Number of Suppliers per Region (in thousands of US Dollars)
Year
Amount of purchases per Region (in thousands of US Dollars)
2011
2010
Guayaquil - Bucay
832
844
Santo Domingo
756
778
1,272
1,285
166
182
3,026
3,089
Quito Others
Total
Year
2011
2010
118,000
85,000
Santo Domingo
96,000
98,000
Quito
119,000
93,000
Guayaquil - Bucay
Others
Total
9,000
6,000
342,000
282,000
Number of Suppliers per Origen
Purchase amount per Supplier per Origin
(in thousands of US Dollars)
(in thousands of US Dollars)
Year Abroad National Integrated
Total
2011
2010
284
208
2,830
2,872
196
3,310
217
3,297
Year
2011
2010
Abroad
172,000
136,000
National
233,000
191,000
Integrated
109,000
90,000
514,000
417,000
Total
14 14
Heart-of-palm plantation, INAEXPO, Santo Domingo de los Tsรกchilas.
Economic Balance
27
destination countries for our products.
1,429
containers ofheart-ofpalm and artichoke produced.
78
clients internationally.
INAEXPO An example of success for the agro-export sector of the country that typifies the commitment with Ecuador and with the world by facing the challenges of quality Ecuadorian exports. INAEXPO, Industria Agrícola Exportadora, was founded in
This achievement, supported by INAEXPO, has required
1992 with the mission of exporting quality heart-of-palm. A
investment,
decade later, it began the project for the export of artichoke.
knowledge of international markets. INAEXPO’s heart-of-
By early 2001, it expanded its production and marketing
palm is produced in the subtropical areas of the country,
model for heart-of-palm grown in Brazil. Presently, Ecuador is
and reaches 78 clients worldwide distributed in 27 countries
the largest exporter of cultivated heart-of-palm in the world.
spanning Asia, Africa, Europe, and the USA.
research,
agricultural
development,
Offices and Representatives
Destination countries for our products
Commercial / Production Operations
France, Spain, United States, Canada, Venezuela, Argentina, Chile, Mexico, and Israel.
Argentina, France, United States, Chile, Canada, Spain, Israel, Belgium, Uruguay, Ecuador, Italy, Lebanon, Colombia, Germany, England, Morocco, Australia, Mexico, Jordan, Singapore, Switzerland, Saudi Arabia, The Netherlands, Luxemburg, Paraguay, Venezuela, and Brazil.
Ecuador, Brazil, and Costa Rica.
and
Economic balance Main export products INAEXPO’s main export products are cultivated heart-of-palm
sized producers from whom, through a long-term agreement,
and artichoke, both in preserves, which are sought after by the
it purchases all of its production directly.
most demanding consumers in the world due to their delicacy and quality.
Farmers who are integrated are given, in addition, quality agricultural
The production process begins where INAEXPO has implemented an integration model with small and medium-
A model that ensures quality The business model is focused in processes that guarantee a high-quality product, ready to comply with international market parameters. In 2011, INAEXPO maintained its quality control systems based on the standards followed by IFS (International Food Standards), ISO 22000, and HACCP (Analysis and Control of Critical Points), and BASC (Business Alliance for Secure Commerce). The products and processes comply with the FDA (Food and Drug Administration), and with the Codex Alimentarius Commission.
16
inputs,
technological transfer.
technical
assistance,
training,
and
INAEXPO worker harvesting heart-of-palm, Santo Domingo de los Tsáchilas.
Heart-of-palm Indicators Participating farmers Hectares planted by integrated farmers Monthly income / farmer Technical Assistance (training hours per farmer) Employment generation (workdays approximately) Families involved Transport – annual investment (thousands of US$) Improvement in farmers’ formality Average productivity vs. Marketing Incorporation of Environmental GMP (Good Manufacturing Practices)
Artichoke 2011 202 7,226 USD 4,968 54 385,000 1,010 657 Ruc y RIse 6.5 vs. 4.5 Manejo de desechos
Investment in Ecuador (thousands of US$)
7,625
Large Farmers
23%
Medium-sized farmers
51%
Small farmers
26%
Sales (thousands of US$)
37,924
Indicators
2011
Participating farmers
150
Hectares planted by integrated farmers
811
Monthly income / farmer Technical assistance (training hours per farmer) Employment generation (workdays approx.) Families involved Average productivity Sales (thousands of US$)
USD 3,645 60 221,760 776 18.28 tn/Ha 11,159
Artichoke plantation, Highlands Area, Latacunga.
ACHIEVEMENTS IN 2011 Heart-of-palm and Artichoke
Gonzalo Moya Vice President of International Business
1,429 containers produced. 929 direct co-workers. 25,126 tons of heart-of-palm fiber were sold to 16 cattle ranchers in the area.
“INAEXPO continues to overcome obstacles”. In 2008, the world market underwent a series of
COMMITMENTS FOR 2012
impacts that caused a significant drop in certain products. Until 2011, these variations were overcome
In the artichoke business, INAEXPO will invest in a residual water treatment plant, which will allow a reduction in the environmental impact that the business has through the use of a cleaner and friendlier technology with the environment.
by INAEXPO, which has consolidated its adaptation process to the crises as of lately. In order to do so, the production processes for heart-of-palm and for artichoke have been consolidated in order to make them more efficient through improvement of our
Maintain certifications and markets.
production plants.
Implement improvements in agricultural, industrial, and commercial areas in order to achieve a sustained profit.
INAEXPO is the only company in the world, in the heartof-palm business, which has a plant with the correct
In the artichoke business, INAEXPO will institute new proposals in order to strengthen the strategy of raw material provisioning, and implement improvements in the productive process.
18
levels of water reprocessing, residual water treatment, and treatment of waste and debris.
Economic balance THE FIELDS ARE THE BEGINNING OF THE VALUE CHAIN Agricultural and livestock integration and extension programs generate development in the productive chain of our Company. Integrated poultry farming The poultry farming integration program is an initiative by
implement poultry equipment and a biosafety system.
PRONACA to establish a direct relationship with individual
The zoo-technical yield is assessed through the European
poultry farmers. The Company provides quality raw materials
Efficiency Factor, which measures the percentages of viability,
for the raising of poultry (bb chicken, bird feed, vaccines,
daily weight gain, and feed conversion.
technical assistance, and training) while those integrated
PRONACA provides technical assistance to farmers. Agricultural Corn Integration and Extension Program, Provinces of Guayas, Los Ríos, and Manabí.
Integrated poultry farms Indicator / year
2011
2010
91
96
Families involved
546
576
Employment generation
455
480
Technical assistance (training hours per producer)
220
212
297/300 vs. 260/300
278/300 vs. 254/300
Participating producers
Average productivity vs. Marketing
Incorporation of Environmental GMP
Provision of vaccines, loans, and training in operational norms
Investment in Ecuador (thousands of US$)
24,549
Provision of vaccines, loans, and training in operational norms
23,054
*The data of the economic exercise of integrated poultry farming belong to each one of their financial exercises.
2011 was a very good year for poultry farming integration. The production results attained have surpassed those of previous years, and the profits obtained have fulfilled the expectations of over 80% of those integrated ones. Poultry farmers have been made aware of the importance of improving biosafety practices, conditions of infrastructure, and equipping of their sheds. Training workshops have been organized in order to share corporate responsibility practices with them.
20 20
Poultry farming center, Tropicales Farm, Santo Domingo de los Tsáchilas
Integrated corn farming The integrated corn program (large, medium, and small) is focused on training corn farmers in order to achieve a more efficient and qualityoriented production following the standards that the company maintains. PRONACA has liaised with government agencies in order to generate long-term development in the fields, which has motivated trust and new opportunities for growth, especially for farmers with less than 10 hectares. Among the most noteworthy results, there are the leveraging of small farmers in knowledge and techniques on corn farming with adequate technologies, and in corn, bean, sorghum, and sunflower cultivation in order to determine the feasibility of planting during the summer through irrigation systems.
Integrated PPC (More than 10 hectares) Indicator / year
2011
2010
Total investment amount (thousands of US$)
5,256
2,567
300
293
Total number of participating farmers Products associated to the project
Corn
Area cultivated with farmers (ha) Loan recovery portfolio (thousands of US$) Average productivity (Tm/Ha) Amount of corn delivered to PRONACA (MT) Technical visits
Corn 17,007
Results achieved 18,086
2,511
4,987
4.5
5
62,498
75,323
986
1,380
Integrated PII (Less than 10 hectares) Indicator / year
2011
2010
Total investment amount (thousands of US$)
633
218
Total number of participating farmers
159
58
Total number of benefitted farmers
533
469
Products associated to the project
Corn
Corn
Cooperating institutions
IDB, SNV, Municipality of El Empalme
Results achieved Area cultivated with farmers (ha) Loan portfolio recovery (thousands of US$) Average productivity (Tm/Ha) Amount of corn delivered to PRONACA (MT) Farmers trained
PRONACA ensures the quality of one of its main raw materials: corn.
1,386
415
558
202
5.8
4.5
3,979
1,243
533
469
22 22
Farmers touring the Agricultural Research and Developmet Center at La Josefina, during the “Golden Corn on the Cob 2011” Event.
Economic balance
ACHIEVEMENTS 2011 Integration Programs We achieved record results in certain lots of poultry
procedures through GMP (Good Manufacturing Practices)
farming when we reached feed conversions of 1.67*.
and support of Integrated technicians.
Integrated farmers have strengthened their businesses
We generated a sense of belonging in the integrated farmer
and project growth for 2012 based on state-of-the-art
that yielded further trust in dealings with the company. This
technology for poultry production.
was achieved through assistance, training, motivation, and recognition.
We generated a change in the production scheme of the integrated farmer that allows ordering of their
* Feed conversion is the relationships of weight versus feed consumed in kilos.
COMMITMENTS FOR 2012 Support self-storage of hard yellow
Jorge Zambrano Corn farmer – Canton of Mocache
corn through the association of small farmers so that they may have their own drying and storage infrastructure. Foster summer corn growing through an irrigation system in order to increase their annual production and therefore increase revenues for the
First place in Mazorca de Oro (Golden Corn on the Cob) for 2011 “The secret to becoming Number One is to work as instructed by INDIAPRONACA technicians and follow their recommendations step by step. They visit us twice a month, but if we see unconformities in certain areas of production, we call the technicians so that they may guide us.
farmers. Develop the implementation of family gardens (corn receiving and drying facilities).
Another important aspect is that we set up a simple goal: to have good production. I have always grown corn, but about 6 years ago, I started to put more heart in growing corn. I was about 28 years-old when this happened. I put more dedication into this process by trying not to depend too mucho on the workers. That’s when I realized the importance of my spending more time at the plant, of understanding how it works, and of constantly verifying whether the products applied are producing good yields”.
24 24
PRONACA co-workers in Santo Domingo de los Tsรกchilas.
Environmental Balance
11
4,615
11,455
implemented nationwide.
202,617
74,193
70
environmental permits observing current legislation.
tons of CO2 not released into the atmosphere as of 2011.
trees planted as of 2011.
treatment
plants for residual water
man-hours of training in environmental culture.
kilos of recycled paper.
ENVIRONMENTAL MANAGEMENT IS A STRATEGIC COMMITMENT FOR PRONACA Sustainability of our operations depends on good practices and responsible management of resources. For PRONACA, 2011 was a year of consolidation in the
Between the years 2010 and 2011, PRONACA invested
application of environmental policies that are cross-cutting
1,643 (thousands of US$) in this process. It carries an
to the organization. Responsible management of natural
environmental policy based on compliance with current
resources is a daily practice that has become an essential
legislation. Our company has made an effort to follow
part of PRONACA’s work culture at its operational centers.
national and international standards concerning the environment and in order to institute procedures to develop new alternatives of environmental care.
Clean Development Mechanisms (CDM). As signatories of the Global Pact, and in agreement with
We are continuing with the application of the indicator model
Principles 7, 8, and 9, which contemplate development of
that reports the consumption of energy, fuels, and packaging,
a preventive focus in light of environmental challenges,
the generation of non-toxic waste, and residual waters.
fostering
and
These comprise the five indicators that are showcased every
encouraging development and diffusion of respectful
year in order to verify advancement and compliance with the
technologies
environmental policy.
greater
environmental
mindful
of
the
responsibility,
environment,
PRONACA
continued the development of the gas emissions reduction project that cause the greenhouse effect.
The procurement of 70 environmental permits has comprised a significant advance in our administration. These permits
Technological changes were performed at 6 operational
are obtained at the Ministry of the Environment and at
centers, which are framed around a comprehensive
Environmental Secretariats at local municipalities. This
environmental management that is based on cleaner
information is included in environmental studies performed
production concepts. As of 2011, PRONACA stopped
and presented periodically, in agreement with the stipulations
releasing 202,617 tons of CO2 into the atmosphere. This is a
of the Law on Environmental Management and the Unified
process subject to yearly verifications and approvals by the
Text of Secondary Environmental Legislation (Tulas—in
United Nations Organization (UNO).
Spanish).
Environmental Balance
Figures of an environmentally-friendly administration. Energy consumption Business Poultry Pork Commercial eggs Livestock Cold meats (cold cuts) Preserves INAEXPO - Heart-of-palm
Kw-h / year 2011
Fuel
Kw-h / ton pt* 2011
gal. fuel / año 2011
Business
27,471,723
270
Poultry
5,231,100
205
Pork
gal. / ton pt. 2011
27,471,723
270
5,231,100
205
435,062
38
435,062
38
Commercial eggs
25,770,856
45
Livestock
25,770,856
45
7,133,321
550
Cold cuts
7,133,321
550
637,517
116
Preserves
637,517
116
1,499,109
148
INAEXPO - Heart-of-palm
1,499,109
148
* Tons per finished product.
Non-toxic waste Business
Kg / year 2011
Toxic waste** Kg / ton pt 2011
Zone
BioBiopeligrosos hazardous chemical (kg) containers (kg)
Poultry
15,7121
1.5
Pork
55,870
2.2
Coast
4,282
2,424
5,486
Commercial eggs
62,848
5.5
Santo Domingo
4,369
12,628
2,138
Livestock
6,00,080
1.0
Highlands
Cold cuts
153,481
11.8
Preserves
16,947
3.1
INAEXPO - Heart-of-palm
92,559
9.2
Total
Business
Poultry Pork
m3 of industrial residual water 2011 1,072,417 111,168
726
3,383
15,778
11,007
Packaging m3 / ton pt 2011
Business
Number of bags 2011
10.6
Poultry
4.3
Pork * Tons per finished product.
8,765
0.8
Livestock
115,165
0.2
Cold cuts
125,362
9.7
Preserves
78,720
14.3
INAEXPO - Heart-of-palm
161,771
16.0
Commercial eggs
1,545.5
1,019.7
** Final disposition: Environmental manager certified by environmental authority.
Residual water
26
Spent oil (gal)
Units bags/ton pt. 2011
43,296,713
426
7,195,642
281
Large-impact environmental initiatives. Continuously, the company invests in the continuous
Concerning pig breeding, since 2000 to-date, a system has
implementation and improvement of environmental control
been developed and implemented for rearing pigs with
and prevention systems in order to optimize resources,
decreased impact on the environment. This system uses
minimize impacts on water and air in their areas of
rice-husk beds, eliminates the use of water in the cleanup
inuence, and improve the management of solid waste.
of production areas, minimizes the presence of odors, and
The resulting waste stemming from the various production
allows obtaining organic fertilizers. There are bio-digesters
activities that PRONACA embarks on is managed and
at the breeding and fattening farms for the treatment of
disposed of by following procedures the observe current
residual water.
legislation. Bio-digesters at pig farms use a technology that allow for the Inorganic waste that is not reused internally is delivered
comprehensive management of organic waste. These are
to environmental managers, certiďŹ ed by local authorities.
closed systems that facilitate the decomposition of organic matter under anaerobic conditions, i.e., the absence of
Organic waste stemming from industrial plants represents
oxygen. As a result of this process, it is possible to obtain bio-
the raw material for new production processes. Some
fertilizers, organic fertilizers, and bio-gas. Processing based
is used for the production of fertilizers commercialized
on bio-digesters represents one of the most advanced
nationally, and is used at plantations and gardens within
techniques employed in Ecuador, and in this aspect,
the company’s facilities.
PRONACA sets the highest standards for the industry and for this sector of the economy.
3R Campaign, paper reduction, reuse, and recycling.
Paper recycling, reuse and reforestation. PRONACA continued with the 3R Program for paper, water,
This initiative forms part of the corporate volunteerism effort
and energy reduction, reuse, and recycling. The same is done
that seeks to motivate environmental awareness not only as
with reforestation, which links co-workers and their families.
co-workers but also as citizens.
28 28
Laboratory, residual water treatment plant, Valle Hermoso, Santo Domingo de los Tsรกchilas.
Environmental Balance
SUCCESS CASE Residual water treatment plants. One of the most relevant aspects of PRONACA’s operations
management
has been the implementation of 11 modern residual water
microbiological techniques to purify the residual water and
in
this
industry.
These
plants
employ
treatment plants nationwide. As of 2011, PRONACA has
allow for discharges that return back to nature to fulfill the
invested close to $10.2 billion dollars, which comprises an
parameters established by current environmental legislation.
example nationally concerning adequate environmental
ACHIEVEMENTS IN 2011 Environmental Care During the
2011,
CDM
PRONACA
project
continued
(Clean
Julio Aguilar
with
Director of Operations
Development
Mechanism). We consolidated the culture of environmental
“PRONACA is permanently committed with the environment”.
work in the organization, and we set challenges for management in excellence at national production centers.
The practice of responsible production policies forms an essential part of PRONACA’s organizational culture. This is
As of 2011, we have planted 74,000 trees
why the Company has a management model that implies a
nationwide.
renewed commitment with its stakeholders. This work, which has been performed in a gradual, progressive, and sustained manner in time, highlights important projects developed during 2011.
COMMITMENTS FOR 2012
One of them is the incorporation of a new technology to improve the bio-digester system in the production of pork. This makes it possible to use gas as a source of fuel in order to
During 2012, we will work on the carbon and hydric
generate sustainable electrical energy.
footprint. The physical and human investment to implement a To register a Clean Development Mechanism at the
composting system in our plants represents another
United Nations Organization (UNO).
contribution to the environment since through this mechanism we can use our own waste and turn it into organic fertilizer containing agronomic value.
30 30
PRONACA offers Ecuadorian families high-quality innovative products.
Social Balance
105%
growth of Mr. Chancho from fractioned sales.
68,232
sales points
offer products for the base of the pyramid.
11.4% new products sales growth.
35%
POP growth
for Mr. Cook en through Socio Solidario.
PRODUCT RESPONSIBILITY PRONACA’s commitment is geared toward maximizing quality, healthy, innovative, and fairly-priced products. PRONACA anchored its presence in the market during 2011 with
PRONACA broadcast Te Queremos Mejor Alimentado TV (We
the creation of innovative products with attractively presented
Want You Better Nourished) (TQMA.T V). During this second
packaging.
season, PRONACA delivered 40 new menus costing between US$ 0.60 and US$ 1.00 per serving. The quick preparation
PLUMROSE strengthened its Daily Line, which responds to the
channel presented a growth of 8%, which responds to
needs and likes of consumers. It grew to 68,232 points of sale
PRONACA’s commitment with its customers, by offering quality,
with its fractioned presentations, accessible prices, and an
reliable products, which are in addition profitable for the
efficient distribution system. Its sales grew by 54% in relation
individual businesses.
to 2011. In the pet business, during 2011, Ecuadorian consumers Since June 2011, Ecuadorian consumers can enjoy the new
awarded our efforts in developing nutritional and quality
fractioned presentations in Mr. Pollo cold cuts with sausages
products for dogs, with an increase of 9% in comparison to
and bologna, nutritional and economic products with the
2010 in PROCAN sales. Furthermore, the company set the
guarantee of PRONACA. Its excellent acceptance was reflected
bases for the PRONACA Pet Care and Nutrition Research and
in brand sales at the 46,490 points of sales where it is present.
Development Center. With an investment surpassing 1 million US dollars, this complex was created to foster the study and
This year PRONACA continued working together with the
creation of new healthy and quality pet food.
Programa Socio Solidario (Partner in Solidarity Program), through which it contributes with products that fulfill high quality
In order to comply with the standards of launching new
and nutritional value standards to the Ecuadorians’ basic family
products, PRONACA conducts blind tests in order to determine
food basket. Its sales grew 35% in comparison to 2010, and its
which products will be launched to the market with less than
products were present in over 36,900 points of sale nationwide.
70% customer acceptance.
The portfolio for Mr. Chancho fractioned products consolidated
All products reaching the final consumer comply with labeling
its presence at the dinner table of Ecuadorians. Its sales
and sanitary legislation, and its labels contain information on
registered a 105% increase in comparison to 2010, as a show of
the nutritional value, date of manufacture and expiration, list of
trust and preference by Ecuadorian families. Similarly, ready-to-
ingredients, sales price, commercial brand, and further data
bake Mr. Pavo turkey breast was launched this year intended for
demanded by current legislation. During 2011, PRONACA did not
modern housewives who wish to maintain family tradition and
report cases of labeling incompliances.
save time in food preparation. PRONACA ethically respects consumer rights, and its advertising In order to diversify the daily menu of Ecuadorian families along with economic, nutritional, and easy to prepare menus,
is neither deceitful nor does it employ images of children.
Social balance
ACHIEVEMENTS IN 2011 Practical and Nutritional Solutions With the presentation of the new TQMA.TV (We Want You
these products and in order to reach the base of the pyramid
Better Nourished) recipes, PRONACA broadcast over
with the Mr. Cook brand.
19,519,000 spots on TV, radio, press, and the Internet. market share in the cat food segment. PRONACA opened the doors to its new value/added product plant in order to satisfy the growing demand for
COMMITMENTS FOR 2012
Juan Maya
For 2012, the presence of the quick preparation
channel
will
Marketing Director
continue
consolidating itself with the development of a portfolio in keeping with the needs of this segment. House pets will now have new pet food: COMPA with the quality of PRONACA. The Socio Solidario line will have a new
“A goal that is achieved step-by-step”. PRONACA creates innovative products that are easily commercialized in order to promote its clients’ businesses. In this regard, the Company has designed a distribution channel that directly involves small business owners, such as convenience stores, which are given a wide portfolio of easily-commercialized products that boost their growth.
member in its family when fish products join in. Its great taste and affordable prices place them among the most preferred foods by consumers.
Sofía Paredes PRONACA will continue contributing to the diet of Ecuadorian families with its
Owner of BigMarket Quito
portfolio of functional food with products such as Indaves Eggs with Omega 3.
“My customers protest when there is no Daily Line” My customers have always sought PRONACA products for their quality, variety, and flavor. Sausages and bologna from the PLUMROSE Daily Line are the preferred cold cuts of those who buy at my store. Whenever they are no longer in my fridge, my customers tell me: “Neighbor, you are out of Daily Line”.
32
A company that listens to the voices of customers and consumers. Whoever wishes to make a suggestion or to present a complaint may do so at 1800-PRONACA, 1800-PLUMROSE, 1800-SUTIENDA, our webpages, and through direct contact at fairs and events.
Publication
*TQMA Magazine EDICIÓN ÑA NAVIDE
40 FASCÍCULO 2011 DICIEMBRE
AR EB EBR ILIA LE L M alo CEL CE ENmeFA jor reg el
s cho ra lomo Chan Comp ados Mr.IPAD2 un marin a por s más Particip premio y varios 25 Pág.
¡Es hora ! de jugardivierte e
ook e en FacebPavo! ¡Únet con Mr. hones y gana
El juego a la familia integra 24 Pág.
smartp Ipads, cards y gift 2 Pág.
a.tv .tqm www
“Alimentarte” (Nourishing You) Online
Su Tienda
Content
Target Public
Quarterly magazine offering information on health, nutrition, family, ways to protect the planet, and recipes. The purpose is to generate fidelity, facilitate knowledge on the use of the products, and support the launch of new brands or presentations.
This virtual bulletin contains notes on nutrition, health, family, and current issues. Its purpose is to foster consumption of PRONACA products and to consolidate an interactive communications channel that strengthens the relationships and loyalty with the consumer.
This is a magazine that publishes information that facilitates the management and administration of these businesses in a simple and direct manner. It is designed to reinforce relationships with this segment, communicate releases, promotions, and foster training.
(Your Store)
Print-Run 2011
Print-Run 2010
Consumers
690,000 copies, 5 editions
760,000 copies, 5 editions
Consumers
326,056 deliveries, 12 digital editions
461,787 deliveries, 12 digital editions
Clients (Store owner)
600,000 copies, 12 editions
600,000 copies, 12 editions
Proagro LA A AGRÍCO REVIST NO.7. CIÓN
RAL.
CIÓN
BIMEST
DIC. 2011-
ENE.
2012
A. GRATUIT
CIRCULA
PUBLICA
a a los A premi íz PRONACctores de ma produ ia de Una historrollo del desar ca de Oro: Mazor o con el oriano ro ecuat compromis maice sector 4 Página
mejores
zonales ivos y o Los inclus tienen mérit también9 Página
ución ral / Distrib Bimest
bre ta / Diciem Gratui
Enero
2011
- 2012
/ Edición
#6
Procampo (Pro-field)
Revista
ía: Ganader a: Avicultur
nte nutrie la El agua:al para princip ia de peso. ananc
ura: Porcicult
del tación Alimen¿por qué eacerdo, r los balanc escogePágina 6 dos?.
t 1 130"(30
This is a trade technical magazine, which addresses agricultural health and nutrition, seeds and the options of technical support that farmers can count on. Its purpose is to disseminate information, product portfolios, and releases.
Clients: (farmers)
4,000 copies, 1 edition
36,000 copies, 6 editions
Magazine of trade technical content that addresses issues of animal nutrition, health, and genetics. Its purpose is to improve productivity through technical, commercial, portfolio, and new product launches.
Clients (livestock ranchers)
0
36,000 copies, 6 editions
ales el Los princip os para cuidad o seco. ganad 8 Página
*We Want You Better Nourished.
Social balance Contact center
Complaints and claims
During 2011, PRONACA adequately handled complaints and
PRONACA has a quick and efďŹ cient process to provide
claims from clients and consumers, thus demonstrating its
answers in the shortest time possible, to concerns,
commitment of guaranteeing healthy and quality products.
complaints, and claims from our clients and consumers. Clients and consumers who wish to make a suggestion or a complaint can do so by calling 1-800 PRONACA or by visiting www.pronaca.com.
Means of Contact Contact Center PRONACA.com webpage procan.com.ec webpage plumrose.com.ec webpage Contact number at fairs and events
Total
34 34
Contacts 2011
Contacts 2010
19,338 445,185 8,307 7,567
36,721 470,060 28,610 3,821
1,043,329
1,000,460
1,523,726
1,539,672
PRONACA listens to its clients and consumers.
Category
Complaints 2011
%
Complaints 2010
%
Marketing (1) Quality (2) Service (3)
18 528 210
2% 70% 28%
2 542 167
0% 76% 23%
Total
756
100%
711
100%
(1) Advertising, damaged labels, nutritional information, promotions. (2) Damaged product, expired product, damaged packaging, misrouted. (3) Service, delivery, dispatch.
84
certifications support productive processes at PRONACA.
850,815
analyses guarantee quality and food safety of our products.
QUALITY AND SECURITY Taking quality food to Ecuadorian homes is a commitment always present throughout our production chain. PRONACA has developed a standard process in order to ensure
with national and international parameters in the food industry,
that all of its products, besides being designed in agreement
PRONACA maintains a system of technical cards for raw materials,
with the likes and preferences of the consumer, are imbued with
packaging materials, and finished products. All operational
quality and food safety. This process is cross-cutting to the entire
centers have internal laboratories that perform quality and food
production and supply chain. In order to guarantee compliance
safety analyses.
Prioritization of control systems International industry standards demand this type of norms at production facilities. An adequate system of good practices is the first tool for biosafety and comprises a management model that prioritizes process standardization, decrease of production costs, compliance of productive parameters, food safety culture, personnel training, preventive and corrective equipment
Total # of analyses performed during 2011 to guarantee compliance in quality and harmlessness in all PRONACA brands.
Number of total analyses
maintenance, process variable control, continuous improvement, and environmentally-friendly production. This system allows obtaining legal permits.
Sector Poultry incubators Poultry Reproduction Farms Poultry Fattening Farms Turkey Farms Pig Farms Incubators Processing Plants Distribution Centers
# of Certifications 3 11 19 6 16 3 25 1
Animal nutrition (3 plants) Poultry (3 plants) Pork Added Value - Pifo Operational Center - Guayaquil Rice Preserves Egg classification Heart-of-palm Artichoke PRONACA - Colombia Mardex
Total
463,670 12,219 4,171 60,241 42,683 15,360 137,983 582 76,297 13,922 17,387 6,300 850,815
Social balance Food safety control The food safety control process is defined in technical
Operational
scientific follow-up studies, which are process-strict and
implemented an auditing system. During 2011, scores obtained
delineated by HACCP plans (Hazard Analysis for Critical
with the GMP norms at the Coast and South of Ecuador, were
Control Points, which is a system that identifies, evaluates,
highlighted.
and controls hazards that are significant for food safety), which are shown per sector below:
centers
continue
being
certified
and
have
DC Guayaquil: 93% compliance DC Cuenca: 94% de compliance DC Montecristi: 92% compliance
As in proprietary PRONACA Operational Centers, raw materials, packaging materials, ingredients and input suppliers, are required
INAEXPO heart-of-palm:
to have certifications obtained in order to guarantee food safety
Heart-of-palm, whole or in preserves (canned or in glass jars).
of products. Concerning seafood products, these suppliers have certifications from:
Heart-of-palm sub-products in preserves (canned and in glass jars).
Poultry: Poultry Plant at Yaruquí: (1) Chicken slaughtering and cuts. (2) Turkey slaughtering and cuts, broilers, and roasters. Poultry Plant at Valle Hermoso: (1) Chicken slaughtering and cuts.
FACUNDO: HACCP
Pigs: Pig slaughtering and cuts.
Meat-product added value: Fine pastes. Full-muscle products cooked in slow-cookers. Full-muscle products cooked in ovens. Raw frozen. Cooked frozen.
Artichoke: Production of artichoke and mixed products – artichokes and heart-of-palm in jars and cans in heavy salt, normal and marinated.
plants
(Good
Manufacturing
Practices)
manufacture products in an environment with high hygiene and comply with International Norms such as those of the CODEX ALIMENTARIOUS, a world-renowned food code.
36
In the case of external suppliers of preserve products, these have certifications in:
Poultry plant at Bucay: (1) Chicken slaughtering and cuts.
GMP-certified
OMARSA: BRC e ISO2000:2005/ACC/EUROLEAF/GLOBAL GAP PRODUMAR: Best Aquaculture Practices/HACCP/Global Gap EXPALSA: HACCP/Global Standard for Food Safety/BRC/ Global GAP SANTA PRISCILA: HACCP/BRC/Organic/Aquaculture Stewardship Council
Certifications at operational centers to-date. Poultry Certifying Agency
Op. Center
Type of Certification
Certification Criteria
Validity of Certificate
Plant at Yaruquí
HACCP (Hazard Analysis Critical Control Point) ISO 22000:2005 Regulation GMP 3253 - Ecuador
Codex Alimentarius ISO 22000:2005 Regulation GMP 3253 - Ecuador
SGS SGS MSP
2012 2014 2014
Plant at Sto. Domingo
HACCP (Hazard Analysis Critical Control Point) ISO 22000:2005 Regulation GMP 3253 - Ecuador
Codex Alimentarius ISO 22000:2005 Regulation GMP 3253 - Ecuador
SGS SGS MSP
2012 2014 2014
Plant at Bucay
HACCP (Hazard Analysis Critical Control Point) ISO 22000:2005 Regulation GMP 3253 - Ecuador
Codex Alimentarius ISO 22000:2005 Regulation GMP 3253 - Ecuador
SGS SGS MSP
2012 2014 2014
Op. Center
Type of certificate
Certification Criteria
Certifying Agency
Validity of Certificate
Pork Plant (Frimaca)
ISO 22000:2005 Regulation GMP 3253 - Ecuador
ISO 22000:2005 Regulation GMP 3253 - Ecuador
SGS MSP
2014 2014
Pork
Cold meats and Added Value Certifying Agency
Op. Center
Type of certificate
Certification Criteria
Cold meats Pifo (Carnasa)
Regulation GMP 3253 - Ecuador ISO 22000:2005
Regulation GMP 3253 - Ecuador ISO 22000:2005
MSP SGS
2014 2014
PRONACA Guayaquil (Ecuadasa)
GMP (Good Manufacturing Practices)
Codex Alimentarius
SGS
2013
Validity of Certificate
Social balance Eggs Op. Center
Type of Certificate
Certification Criteria
Carcelén Classifier
GMP (Good Manufacturing Practices)
Codex Alimentarius
Certifying agency
Validity of certificate
SGS
2014
International Op. Center
Certifying agency
Type of Certificate
Certification Criteria
Heart-of-palm
HACCP (Hazard Analysis Critical Control Point) ISO 22000:2005 IFS
Codex Alimentarius ISO 22000:2005 IFS
ECOCERT SGS ECOCERT
2013 2015 2013
Artichoke
HACCP (Hazard Analysis Critical Control Point) IFS
Codex Alimentarius IFS
ECOCERT ECOCERT
2013 2013
Certifying agency
Validity of certificate
Validity of certificate
Livestock Business Op. Center
Type of Certificate
Certification Criteria
Puembo
GMP (Good manufacturing practices)
Codex Alimentarius
ICONTEC
2013
Quevedo
GMP (Good manufacturing practices)
Codex Alimentarius
ICONTEC
2013
Durán
GMP (Good manufacturing practices)
Codex Alimentarius
ICONTEC
2013
Distribution Centers - Logistics
38
Certifying agency
Op. Center
Type of Certificate
Certification Criteria
Puembo
GMP (Good manufacturing practices)
Codex Alimentarius
ICONTEC
2013
Quevedo
GMP (Good manufacturing practices)
Codex Alimentarius
ICONTEC
2013
Durán
GMP (Good manufacturing practices)
Codex Alimentarius
ICONTEC
2013
Validity of certificate
SUCCESS CASE PRONACA began the certification of Good Manufacturing
PRONACA led this process and obtained 6 concurrent
Practices based on the GMP Regulation for Ecuador N° 253
certifications, making it the first company in Ecuador to fulfill
published in Official Registry 696, with the Ministry of Public
this legal requisite.
Health, on February 2008. These certifications help us to better handle the post-control Joint timely work performed together with the National
criteria for registering products exercised by the Health
Association of Food and Beverage Manufacturers made 2011 the
Authority, having Certificates recognized by regulating
year in which the poultry, pig, value-added – Pifo, and heart-
agencies from other countries, and taking national regulation
of-palm plants were audited and achieved the certification.
and making it comparable with that of other countries.
ACHIEVEMENTS IN 2011 Quality and Food Safety The processing plants for heart-of-palm and artichoke
Poultry processing plants initially HACCP certified showed
obtained the highest level of certification for the IFS
improvement due to the ISO 22000:2005 certification.
Norm (International Food Standard), required for international clients.
COMMITMENTS FOR 2012 Work together on the ANFAB with the
Ricardo Vargas
MCPEC and the MSP toward a change in
Department Head9, Quality Systems
norms to secure a change in legislation to obtain the Sanitary Registry through GMP. Define a measurement index as a parameter in quality assurance. Maintain
the
certification
and
audit
“PRONACA listens to the voices of its clients”. The voices of PRONACA clients, in the form of complaints, mark an opportunity to ascertain their needs and provide follow-up solutions for problems that arise in time.
scheme at operational centers. During 2011, we handled over 400 complaints, which were subjected to research and follow-up, which in turn allowed advising and training our co-workers in order to improve the quality of service.
Pig Farming Center, Campo Lindo, Santo Domingo de los TsĂĄchilas.
Biosafety PRONACA applies a strict Animal Biosafety and Well-
This procedure, cross-cutting to all operational centers,
being System in every process in the rearing of pigs and
implies restricting visits, use of appropriate working clothes
chickens with the purpose of ensuring the health and well-
and equipment, mandatory showers prior to any entry,
being of the animals, which forms the basis for healthy food
washing of hands, constant health monitoring of all co-
production. Implementation of these measures guarantees
workers, among various measures as to avoid any type of
that animals that are reared in farms, remain healthy, which
contamination risk.
ensures the health of consumers.
Animal Well-being Within the standard that PRONACA implements, animal well-
and of excellent quality. During 2011, PRONACA maintained
being is a key factor. Strict care during the rearing stage,
its animal well-being standard in the chicken and pig farms.
transport and processing of chickens and pigs, achieves a
40
lowering of animal stress levels to a minimum. The company
PRONACA has a research center for the pet food business
controls rest time prior to processing. We comply with
associated to the Pro-Can and Pro-Cat brands. The AVANT
standards that ensure care and treatment in production
Center allows performing research and development so that
sheds, loading and unloading ramps, population density,
pet food may be high quality food. This center fulďŹ lls and
location, cleaning time, amount of water and food, among
observes good animal treatment parameters for dogs and
other factors that determine that the animal meat is healthy
cats.
Social Balance
7,734
employment sources
nationwide.
782
(thousands of US$) invested in human development.
275
co-workers with disabilities
hired as of 2011.
ORGANIZATIONAL DEVELOPMENT Oversight in Human Rights compliance and the occupational health and safety of our co-workers, as well as outreach to communities where we are present, are essential factors of our sustainability management.
The performance of PRONACA as a signatory company of
During 2011, our company was consolidated as one of the
the Global Pact has as its core principle respect for Human
companies that generated 7,734 direct jobs. Distribution of
Rights, in reference to Principles 1 and 2. Its performance is
these jobs was done as follows: 32% in the Coastal region;
focused on people above all, and it is because of this that
35% in the Highlands; and 34% in the Province of Santo
it develops policies that foster favorable conditions and
Domingo de los Tsรกchilas. Business performance has
promote professional growth in its people.
centered on compliance of current legislation.
PRONACA fosters teamwork in all of its co-workers.
Social Balance
PRONACA co-workers by type of job, contact, and region* Region
Coast
Type Fixed Fees Occasional Internship
Total Coast
Highlands
Fixed Fees Occasional Internship
Total Highlands
Nationwide
Fixed Fees Occasional Internship
Total general
ADM
EXEC
731 9 29 1 770 723 17 26 5 771 1,454 26 55 6
2 1 0 0 3 34 7 0 0 41 36 8 0 0
1,541
44
MIX
OPER
Total
559 0 56 0 615 355 0 69 0 425 914 0 125 0
3,519 0 110 0 3,629 1,433 0 48 0 1,481 4,952 0 158 0
4,811 10 195 1 5,017 2,545 24 143 5 2,717 7,356 34 338 6
1,039
5,110
7,734
*Data presented include INAEXPO co-workers.
Region
No. of persons
%
Coast
2,453
32%
Highlands
2,670
35%
2,611
34%
7,734
100%
Sto. Domingo
Total general
Total number of co-workers and average turnover Number of co-workers and turnover
2010
Número total de empleados que Total number of co-workers that have han dejado el trabajo durante el resigned during the reported period. período reportado
11.23% Accrued 0.94% Average
11.03% Accrued 0.92% Average
Número y rango de empleados Number and range of co-workers que han dejado el empleo who have resigned during the durante el período reportado
1,632 persons total 136 persons on average
1,461 persons total 122 persons on average
Calculation with 7,175 persons on average/month
Calculation with 6,082 persons on average/month
reported period.
Número total de empleados al Total number of co-workers at the final del período reportado end of the reported period.
42
2011
Continuing Education System; PRONACA co-workers.
Continuing education The company centered its efforts and actions in the
the best universities and institutions, which insures the
development of its great human capital. Working alongside
development of the course of study of our co-workers.
its co-workers, it developed and implemented plans
During 2011, the company contributed with 70% and 90% of
that create added value for industrial processes and the
the training costs of our co-workers.
generation of quality professionals in Ecuador. Among the most noteworthy aspects of this endeavor is the Through the area of Organizational Development, PRONACA
implementation of the Continuing Education System, which
is executing the Training Plan, which has generated
is focused on the development of behavioral competencies
alliances with Educational Institutions and ďŹ rst-rate Training
and techniques that seek the comprehensive growth of co-
Providers. The training includes Postgraduate Studies
workers personally and professionally.
(Degrees and Masters Programs) that are executed with
Employment
2011
2010
Number of co-workers per level throughout Company operations at the end of the reported year.
OPE: 4,918 ADM: 2,409 EJEC: 44
OPE: 4,691 ADM: 2,335 EJEC: 46
Total number of hours invested in personnel training at each level of co-workers.
OPE: 6,818 ADM: 5,526 EJEC: 217
OPE: 6,189 ADM: 4,450 EJEC: 13
Number of training hours per year, per co-worker, and level.
OPE: 1.39 h/h ADM: 2.29 h/h EJEC: 4.93 h/h
OPE: 15 h/h ADM: 1.9 h/h EJEC: 0.3 h/h
Number of training hours per year, per level = Total hours per level/Total number of co-workers per level.
Total: 1.7 h/h
Total 1.7 h/h
Social balance Co-workers who have received performance evaluations No. of Persons Evaluated
Year
% of total co-workers
1,329 1,633 2,062 2,012 2,117
2007 2008 2009 2010 2011
% of Adm. and Exec. groups
21% 25% 31% 28% 29%
97% 92% 91% 84% 86%
Percentage of men and women in the Company Age group
Women
Under 30 Between 30 and 50 Over 50
Total
Men
Total general
575 811 46
2,594 3,411 297
3,169 4,222 343
1,432
6,302
7,734
Percentage of income per position Year
Administrative
Executive
Mixed
Operations
Total
2010 2011
45.67% 45.70%
12.12% 11.05%
10.15% 10.27%
32.06% 32.97%
100% 100%
Percentage of income per level and gender Administrative
Executive
Mixed
Year 2010 2011
FEM
MASC
FEM
MASC
FEM
10.65% 10.57%
35.02% 35.13%
0.36% 0.34%
11.76% 10.71%
0.55% 0.23%
Operations
Total
32.06% 32.97%
100% 100%
PRONACA has valuable co-workers in various regions of
PRONACA executed a Development Evaluation (basically
the country. Each one is the visible face of the company in
measuring organizational competencies), with a participation
reference to the client and final consumer.
of 99% in administrative areas (this evaluation is not performed at the operational level). We were able to ascertain proof
During 2011, PRONACA executed an Organizational Climate
of a significant growth of 87% regarding competencies in
and Culture Study along with a psycho-social survey that
comparison with last year’s 86%. This indicator is vital in
reached 88% of the company’s population, thus achieving
measuring the positive impact of internal training.
majority participation and significant results for the planning of co-workers’ well-being.
44
Employment benefits The company complies with current national legislation,
The uniform is established as a benefit for the feminine staff,
nonetheless, our co-workers have additional benefits such as
sales, and messengers. The personal injury insurance policy is
private health care and life insurance, savings accounts, which
for all organizational levels, depending on the valuing of the job
is optional, the PRONACA store, and membership cards for
position.
supermarkets and pharmacies.
Has the benefit Does not have the benefit
Type of Job Position OPE
MIX
ADM
EXEC
Life Insurance 2011
Medical care Personal accidents International policy
Type of Job Position OPE
MIX
ADM
EXEC
Savings account Company outing Christmas basket Benefits 2011
Uniform Work clothes PRONACA store Supermaxi card Fybeca card
Type of Job Position OPE Services 2011
Meals Transport Medical Services Best in operations
Acknowledgments 2011
Seniority Honorable mention Golden Rooster
MIX
ADM
EXEC
Results-oriented work is one of PRONACA’s keys for success.
Human work designed to improve the lives of our co-workers
Inclusion of persons with disabilities Intent on the purpose of promoting and strengthening observance of the rights of persons with disabilities,
The company worked hard to gather socioeconomic data
PRONACA has worked towards achieving the equitable
that could provide information on co-workers and their
inclusion of 275 co-workers with disabilities as of 2011.
families. In order to do this, PRONACA created a nationwide team of 12 professionals called the Social Work Team for the
PRONACA received on behalf of the Office of the Vice
three regions covering our operations. Our social workers
President of Ecuador and of the Ecuadorian General
address issues shown below as part of a comprehensive
Foundation, a business acknowledgment for best practices
procedure focused on verifying the situation of families:
in social and labor reinsertion for persons with disabilities for this period.
Home visits at the administrative and operational levels. Permanent hires. Data updating and demand for services that have to do with the family’s surroundings.
We covered 3 programs that have to do with the following issues:
Domestic violence. Financial intelligence and family economics. Entrepreneurship with our co-workers’ wives.
46
Annual Golden Rooster awards ceremony.
GOLDEN ROOSTER A recognition to the effort and commitment of many years The Golden Rooster is an initiative designed to acknowledge
The minimum time a co-worker must remain in the company
the efforts of company co-workers. During 2011, we evaluated
in order to reach this recognition is 5 years. This is an event
the work of 658 co-workers. We evaluated:
that recognizes seniority and is applied to every level in the
Teamwork. Results-oriented work and service. Communication. Innovation and creativity. Self-development and organizational knowledge.
10, 15, 20, and 25-year categories.
2011 Golden Roosters Acknowledgment Wood plaques Glass plaques Golden Rooster Large Golden Rooster Glass plaques Gold plaques Silver plaques
Category
Awardees
Best in Operations Honorary mention Golden Rooster Best teamwork / Operations center Best operations center Acknowledgment admin. and mixed years in serv. Acknowledgment oper. years in service
80 21 20 7 4 209 317
Total Awards
658
Internal communications system through digital displays, Inverna Building, Quito.
Internal Communications PRONACA successfully implemented the digital display pilot
Other communication tools
project in two operational centers of the company: at the Inverna
Pronoticias’ (Pronaca news):
Building (head office) and at the Southern Quito Distribution
with a total circulation of 7,500 magazine, i.e., one per every
Center. Through this pilot, PRONACA seeks to standardize
co-worker.
4 issues per year
message broadcast in the various operational centers with updated and pertinent information for each center, keeping all
The Pronoticias corporate magazine includes the bulletins
co-workers apprised of relevant issues.
“My Plant, My Job”. Its pages depict the life of the organization in general terms and those of certain operational centers
The information is transmitted through the internet via
specifically.
appropriate software and equipment. It offers historical information on the company, answers During 2011, we reached approximately 750 persons between
questions on procedures and internal practices, and
both operational centers. Starting on 2012, this initiative will be
addresses pertinent issues of PRONACA.
extended to other centers nationwide.
Intranet: We reach close to 1,500 users. Corporate Address for emails (PRONACA Comunica): 1,500 users.
Means for
delivering official information by the company, which seeks to channel and centralize information on the various businesses and areas.
48
Social balance ACHIEVEMENTS IN 2011 Organizational Development The company drove the development of a School
such as INDEG, ADEN BUSINESS SCHOOL, and the
for Internal Facilitators in order to capitalize on the
Zamorano Pan-american Agricultural School.
knowledge and experience of its outstanding coworkers and thus multiply knowledge.
PRONACA offered its executives the “Comprehensive Updating Program” in which high-ranking specialists of the
We held alliances with noteworthy institutions in the
company share knowledge and experiences with our top
country in order to lead processes for learning and
executives in order to hone our management skills by using
transfer of knowledge directed at specific needs of the
the most advanced Human Development and Business tools.
company, equipment, and persons. “It’s Never Too Late To Learn” is a project PRONACA We signed medium-term interaction agreements in
continued for those co-workers who did not finish their
order to guarantee quality education with institutions
elementary or high-school studies.
COMMITMENTS FOR 2012 Lorena Vallejo To work together on the ANFAB
Cost Accounting
with the MCPEC and MSP in order to lobby for a legislative change to
“Equality among co-workers is PRONACA’s priority”
obtain the Sanitary Registry through GMP.
Respect and equality for all of us working at PRONACA is the main To define a measurement index as
characteristic of this Company. For nine years I have developed
a parameter for Quality Assurance.
my activities normally since I have been given the necessary tools here to do so.
To maintain the certification and auditing centers.
process
at
operational
PRONACA has granted me the opportunity to grow professionally and demonstrate that a physical limitation does not hinder intellectual growth.
Social balance OCCUPATIONAL HEALTH AND SAFETY The culture of risk prevention at the jobsite is the basis of occupational health and safety. 2011 was noted for work performed in risk prevention at the
As part of the new scheme of medical services, we
jobsite. Within the area of Occupational Health and Safety,
inaugurated the Bucay Regional Medical Dispensary, which
PRONACA concentrated its efforts on the management of
was followed by the same model for the Santo Domingo
incident control as the basis of accident prevention. The
Regional operations. PRONACA redefined and standardized
Company executed safety promotion campaigns.
the Health Monitoring Plan for the control of work-related diseases.
In order to decrease work-related accidents, PRONACA
50 50
implemented and promoted safe attitudes and behaviors as
With the purpose of strengthening emergency readiness,
an ongoing Company program. The result of this work was a
PRONACA trained brigadiers for the control of fires,
full year without major accidents or fatalities. The company
evacuations, and first aid. The company began the paperwork
began observing in April the World Day of Occupational
for renewal of Regulations and Registration of Occupational
Health and Safety.
Health and Safety Committees.
PRONACA co-workers have the necessary tools and instruments to minimize work-related risks. Grain sorting machine, Rice peeler, Durán.
Creation of joint committees and subcommittees Joint Committees and Subcommittees
2011
2010
Occupational Health and Safety Committees and Subcommittees with a constituency of 50% of all co-workers.
50%
50%
Creation of the Central Committee and Subcommittee with the participation of co-worker representatives.
1 Central Committee 75 Subcommittees 348 co-workers out of 5,539
1 Central Committee 22 Subcommittees 138 co-workers out of 4,833
INAEXPO Central Committee.
1 Central Committee 1 Subcommittee 12 co-workers out of 907
1 Central Committee 1 Subcommittee 12 co-workers out of 825
Rates
Accidents (1)
Possible occupational diseases (2)
Lost time days (3)
Absenteeism (4)
2011
2010
7.51
7.65
32.16
44.02
109.33
90.77
855.8
729.67
Results 124 AR during 2011, with 16,508,300 co-worker/ hours worked 531 possible occupational diseases with 16,508,300 co-worker/ hours worked
2010 – 2011 variation (12,098) (14,128); absenteeism increased
2010 (12,098) - 2011 (14,128); absenteeism increased.
(1) The accident rate (AR) is calculated based on accidents that generated a full workday of absenteeism, multiplied by a factor of 1,000,000, and divided by the co-worker hours worked, with data going to December. (2) The Rate of Occupational Diseases (ROD) is the number of cases of possible occupational diseases, multiplied by 1,000,000 and divided by the number of co-worker hours worked. (3) The Rate of Lost Time Days (RLTD) is the sum of lost days due to work-related accidents, multiplied by 1,000,000, and divided by the number of co-worker hours worked, with data going to December.
Preventive health is a priority for the Company. Medical dispensary, Rice Peeler, Durรกn.
Health promotion Areas of Investment (thousands of US$) Industrial Safety PPE Industrial hygiene Health
Total Health Card Medicines Health Monitoring Health Promotion Total
Total SSO
2011
Drills
2010 300 841 30 0
298 713 22 109
1,172
1,143
94 108 125 28
37 51 167 10
355
264
1,527
1,407
Operational centers Drill compliance Nยบ of co-workers evacuated % of co-workers evacuated
2010
89% 100% 11,295% 87%
89% 94% 9,525% 74%
Company / Hours in training
2011
2010
Co-workers Total promotion hours Proportion
6,612 4,758 0.74
6,448 6,021 0.96
*The proportion is calculated by dividing promotion hours by the number of co-workers. Emergency preparedness implies the development of two annual drills.
52
2011
Social balance DIALOGUE AND RELATIONSHIPS WITH STAKEHOLDERS
16
social and trade associations form a working network of which PRONACA forms a part.
A+
is the score obtained by the Sustainability Reports published by PRONACA.
PRONACA is a member of the Global Pact in Ecuador, CERES, and CEMDES.
Through specialized technical consultancy, PRONACA offers permanent advice to Integrated Farmers. Circle of Success Program.
Social balance PRONACA contributes to position Corporate Responsibility in Ecuador by maintaining positive relationships with all stakeholder groups. During 2011, PRONACA worked together with the Global Pact
During 2011, PRONACA exchanged knowledge and shared
Network, The Ecuadorian Consortium of Social Responsibility,
experiences with public and private sector companies,
(CERES),
Sustainable
fostering the importance of business sustainability. At
Development of Ecuador (CEMDES), in order to strengthen
and
the
Business
Council
for
the same time, it maintained cooperation bonds with
and drive corporate responsibility in Ecuadorian Society.
representative organizations and associations of industrial and business development.
THE GLOBAL COMPACT
54
Acknowledgments Year
2011
Granting institution
Award, acknowledgment, or certification
CEMEFI, Mexican Center for Philanthropy
Recognition to Exemplary Company in Latin America.
Líderes Ecuadorian Magazine.
First place nationwide as a Socially Responsible Company.
General Rumiñahui Acknowledgment, Provincial Council of Pichincha.
Acknowledgment to the Company with Best Consumer Practices in the category of large national companies.
CERES Ecuadorian Consortium of Social Responsibility.
Acknowledgment for outstanding participation as part of the Board for 2010-2012.
CEMDES Business Council for Sustainable Development of Ecuador.
Global Pact, Ecuador Chapter.
2011 Elections, Presidency of the Global Pact Network, Ecuador Chapter.
2011 Elections for the Presidency of the Global Pact Network for a period of 2 years.
Generating positive relationships with the communities. PRONACA implements initiatives that seek for the well-being of stakeholders and communities with which it interacts. During 2011, the company worked hard at consolidating good relationships with the various stakeholders from the production chain. It excelled in managing joint work with authorities and providing information on issues that the company handles. In specific cases, visitors toured operational centers from PRONACA operations. Relationships with stakeholders were concentrated in the three regional centers: Coast, Highlands, and Santo Domingo de los Tsáchilas. PRONACA strengthened communications channels with communities and specific stakeholders at the local level.
Wellbeing and health of neighboring communities The most relevant aspects of the implementation were as follows: PRONACA delivered updated information to the network of integrated poultry farmers from Santo Domingo de los Tsáchilas concerning changes on legal norms of the area. The company held training workshops for small business owners on proper feed processing. Work with the Poly Ugarte Foundation in campaigns for breast cancer prevention in communities of operations of the Coast. PRONACA led an awareness-creation campaign on the importance of having a timely medical checkup. With the support of the Municipality of Bucay and of the IESS (Ecuadorian Institute for Social Security), PRONACA assisted 1,522 women aged 15 to 70. in collaboration with the Municipality of Guayaquil and other private companies, we assisted a total of 15,000 women. PRONACA created medical brigades designed to prevent diseases and promote health. Within this context, we vaccinated 65 children under the age of two against polio and the influenza virus. The Company implemented a campaign in Bucay for the prevention of alcoholism and drug addiction through community speakeasies held with local zonal leaders. PRONACA
held
two
workshops
together
with
the
Municipalities of Cumandá and Bucay regarding how to act in the event of fire, and also on first aid. Groups of co-workers participated in community group efforts to clean up and paint several schools such as the 26 de enero de Casa Blanca, Matilde Esther and Martha Bucaram schools, as well as the recovery and improvement of the park at the neighborhood of Brisas de Santay. The PROvoluntarios (PROvolunteers) brigade organized a Christmas dinner for the elderly living in the area of influence of operational centers in order to share the spirit of the season.
56 56
Visit from representatives of the Netherlands Development Organization (SNV) from Mozambique, Zimbabwe, and The Netherlands in order to learn about the Included Integrated Program from PRONACA.
Social balance FUNDACIÓN SAN LUIS
7,747
hours of social volunteering.
114
graduates and 10 graduate classes.
2,686
hours of environmental volunteering.
61
social-action institutions involved.
18,986
persons received food through the San Luis Foundation.
Students from the San Pedro de Valle Hermoso Educational Unit, Fundación San Luis.
Social balance
PRONACA is committed to education in the rural sector and to the delivery of food for the lower-income population. Education Human education, use of technologies, early-age stimulation,
These centers, where PRONACA co-workers children attend
and training of small entrepreneurs, are the four areas
together with youngsters from neighboring communities,
targeted by the educational model of the Fundación San Luis
offer high-level elementary and high-school education in rural
at the Educational Units of San Juan de Bucay and San Pedro
areas.
de Valle Hermoso. During 2012, the San Pedro de Valle Hermoso Educational Unit will graduate its first group of students.
Information / Educational Units
58 58
Total
Community
PRONACA
Graduates
Promotions
San Juan de Bucay
375
63%
37%
114
10
San Pedro de Valle Hermoso
293
68%
32%
0
0
Students apply their knowledge in computers at the computer lab at the Educational Units of San Pedro de Valle Hermoso and San Juan de Bucay
It’s Never Too Late to Learn PRONACA offers the option of finishing elementary or high-school for its co-workers who for whatever reason have not finished their studies, through the “It’s Never Too Late to Learn” (Netpa—in Spanish) Program. Those who are part of this group on occasion attend classes imparted by qualified teachers in order to conclude the studies that for personal or family reasons were not concluded at their due time.
Participants from It’s Never Too Late to Learn - 2011 Program Highlands
199
Coast
152
Sto. Domingo
77
Total Netpa
428
Food Bank During 2011, in cooperation with the Archdioceses of Guayaquil, the Fundación San Luis expanded its coverage of food donation programs, through the Food Bank Program, geared to donating products to underprivileged areas of Guayas. During this year, this action benefited 9,559 persons of the Province of Guayas.
Students from the It’s Never Too Late to Learn Program.
Social balance During 2011, PRONACA donated a total of 45,086 kg of food that benefited 18,986 persons.
Product Chicken Cold cuts Pork meat Rice Cooking oil Eggs Fish
Total
Total Kg. 2011 18,708 10,222 2,016 12,029 874 242 994
45,086
Children from foundations associated to the Food Bank Program.
*Data from the Fundación San Luis including the Food Bank.
The Fundación San Luis works with charitable foundations
delivering food to more people, thus expanding its coverage.
and institutions in a self-managing system that allows
City
Babahoyo Cayambe Cuenca Esmeraldas Guayaquil Ibarra Manta Quito Santa Elena Sto. Domingo
Total
Number of Foundations
% Coverage
Persons Benefited
% Benefited
2 1 3 1 4 4 1 40 1 4
3% 2% 5% 2% 7% 7% 2% 66% 2% 7%
120 65 139 205 9,559 180 200 8.127 150 241
1% 0% 1% 1% 50% 1% 1% 43% 1% 1%
61
100%
18,986
100%
*Data Fundación San Luis, including the Food Bank.
Volunteering During the last period, PRONACA created work teams called
Another important project is the personal support minimally-
PROvolunteers in order to manage activities of social and
disabled PRONACA co-workers offer other institutions and
environmental support led by the Fundación San Luis. The
foundations as part of their work. In this manner, these
Company highlighted reforestation programs in Quito and in
organizations receive support in their tasks by generating
Guayaquil.
new spaces of employment for persons with special capacities.
60
ACHIEVEMENTS IN 2011 Volunteering Pronaca built four laboratories at each one of its
facilities and equipment for their Biology, Chemistry, and
educational centers.
Physics courses, along with other audiovisual equipment.
Today, the Educational Units of San Juan de Bucay and San Pedro de Valle Hermoso each boast specific
428 co-workers participated in the Netpa Program.
COMMITMENTS FOR 2012
Paúl Barrera Production Supervisor
To deliver daily rations of nutritional food,
Avepica Incubator
and expand coverage of the number of persons attending the institutions with which Fundación San Luis works.
“I am a great professional thanks to the support given to me by PRONACA”
To offer opportunities to improve quality
My relationship with PRONACA began 14 years ago when I had
of life and help in solidarity by increasing
the opportunity to study high-school at the San Juan de Bucay
corporate volunteering to 8,000 hours.
Educational unit. The children of PRONACA co-workers children and the youngsters from the community attended this school.
To implement two academies in English and Computer Science at each one of the Educational Units.
I’m very thankful to PRONACA because, besides contributing towards my studies, the company recognized my effort and dedication. Through the auspices of the Fundación San Luis, I was awarded a scholarship to attend the university at
To train 640 parents in issues related to the
the Escuela Superior Politécnica del Litoral, where I studied
integral rearing of children and youngsters.
Telematics Engineering. Another one of the opportunities PRONACA has afforded me is to be able to demonstrate my know-how and accrued experience, since I now work at the Avepica Incubator Plant as Production Supervisor.
62
64
Indicators GRI G3 Content Index Application Level
A+
Third-party-checked
Assured by
Deloitte & Touche
STANDARD DISCLOSURES PART I: Profile Disclosures 1. Strategy and Analysis Profile Disclosure
Description
CrossReported reference/ Direct answer
1.1
Statement from the most senior decision-maker of the organization. Fully
P. 6
1.2
Description of key impacts, risks, and opportunities.
P. 6
Partially
If applicable, indicate the part not reported
Reason for omission
Explanation
Opportunities are mentioned information is not detailed enough, and it is not reported but no key impacts or main Proprietary The information in two paragraphs, as recommended by the GRI. risks of the business.
2. Organizational Profile Profile Disclosure
Description
CrossReported reference/ Direct answer
2.1
Name of the organization.
Fully
2.2
Primary brands, products, and/or services.
Fully
P. 7
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.
Fully
P. 9
2.4
Location of organization’s headquarters.
Fully
P. 9
2.5
Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.
Fully
Pp. 9 - 15
2.6
Nature of ownership and legal form.
Fully
P. 9
2.7
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
Fully
Pp. 9,15,31
2.8
Scale of the reporting organization.
Partially
Pp. 11-12-13
2.9
Significant changes during the reporting period regarding size, structure, or ownership.
Fully
P. 65
2.10
Awards received in the reporting period.
Fully
Pp. 46 - 55
If applicable, indicate the part not reported
Reason for omission
Explanation
P. 5
Some info about shareholders Proprietary information is missing
3. Report Parameters Profile Disclosure
Description
CrossReported reference/ Direct answer
3.1
Reporting period (e.g., fiscal/calendar year) for information provided.
Fully
3.2
Date of most recent previous report (if any).
Fully
P. 5
3.3
Reporting cycle (annual, biennial, etc.)
Fully
P. 65
3.4
Contact point for questions regarding the report or its contents.
Fully
P. 65
3.5
Process for defining report content.
Fully
P. 5
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.
Fully
P. 5
3.7
State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).
Fully
P. 5
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.
Fully
P. 65
3.9
Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.
Fully
P. 65
3.10
Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods).
Fully
P. 62
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. boundary, or measurement methods applied in the report.
Fully
Pp. 62
3.12
Table identifying the location of the Standard Disclosures in the report.
Fully
Pp. 62 - 66
3.13
Policy and current practice with regard to seeking external assurance for the report.
Fully
Pp. 5-69-70
If applicable, indicate the part not reported
Reason for omission
Explanation
P. 5
4. Governance, Commitments, and Engagement Profile Disclosure
Description
CrossReported reference/ Direct answer
4.1
Governance structure of the organization, including committees Fully under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.
P. 9
4.2
Indicate whether the Chair of the highest governance body is Fully also an executive officer.
P. 6
4.3
For organizations that have a unitary board structure, state the Partially number of members of the highest governance body that are independent and/or non-executive members.
P. 9
4.4
Mechanisms for shareholders and employees to provide Partially recommendations or direction to the highest governance body.
P. 9
If applicable, indicate the part not reported
Reason for omission
The number of independent members are mentioned, executive members is missing
Proprietary information
The specfic mechanism Proprietary to provide such recommendations is missing. information
Explanation
Only the general governance body is mentioned, the rest of the members are not mentioned because it is strategic information of the company. The way the board and government operate is reported, the mechanisms to provide with recommendations exist, but were not fully described in the report as it is the internal strategic procedure
65
4. Governance, Commitments, and Engagement Profile Disclosure
Description
CrossReported reference/ Direct answer
Linkage between compensation for members of the highest Not governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).
--
4.6
Processes in place for the highest governance body to ensure Not conflicts of interest are avoided.
--
4.7
Process for determining the qualifications and expertise of Not the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics.
--
4.8
Internally developed statements of mission or values, codes of Fully conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.
P. 8
4.9
Procedures of the highest governance body for overseeing Fully the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.
P. 9
4.10
Processes for evaluating the highest governance body’s Fully own performance, particularly with respect to economic, environmental, and social performance.
P. 9
4.11
Explanation of whether and how the precautionary approach or Fully principle is addressed by the organization.
Pp. 9 - 50
4.12
Externally developed economic, environmental, and social Fully charters, principles, or other initiatives to which the organization subscribes or endorses.
Pp. 55-56-5758-59
4.13
Memberships in associations (such as industry associations) Fully and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.
Pp. 54, 66
4.14
List of stakeholder groups engaged by the organization.
Pp. 53, 54
4.5
Partially
If applicable, indicate the part not reported
Reason for omission Explanation
It is core financial information of the company, thus it is not
Proprietary information likely to be revealed in a public document.
Proprietary The information lies within the highest governance body, and as information a company internal procedure, not reported. Proprietary The information lies within the highest governance body, and as information a company internal procedure, not reported.
4.15
Basis for identification and selection of stakeholders with whom Fully to engage.
Pp. 55-56
4.16
Approaches to stakeholder engagement, including frequency of Fully engagement by type and by stakeholder group.
Pp. 55-56
4.17
Key topics and concerns that have been raised through stakeholder Fully engagement, and how the organization has responded to those key topics and concerns, including through its reporting.
Pp. 55-56
The stakeholder groups are not clearly identified in the report
Proprietary Pronaca has many stakeholders, with whom it has good information communication and relationship. Nevertheless the mapping is
not yet clearly stablished in the report, it is strategic information of the company
STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs) CrossReported reference/ Direct answer
G3 DMA
Description
DMA EC
Disclosure on Management Approach EC
Aspects
Economic performance
Fully
Market presence
Fully
Pp. 11-13-16-18 Pp. 9-11-13-15
Indirect economic impacts
Fully
Pp. 19 -20-23
Pp. 35-36
If applicable, indicate the part not reported
DMA EN
Disclosure on Management Approach EN
Aspects
Materials
Fully
Energy
Partially Pp. 25-26-29 A complete description of
Water
Fully
Pp. 18-2527-29
Biodiversity
Not
--
Emissions, effluents and waste
Partially Pp. 25-26-27 There are not data about
Products and services
Fully
Pp. 32-36
Compliance
Fully
Pp. 8-1823-28
Transport
Not
--
Overall
Fully
Pp. 24-29
66
Reason for omission
To be reported in
There are no measurements yet about the total amount of energy saved and the multiples of joules (Kw) for direct energy use are not specified, or for the indirect energy consumtion.
2013
Not available
Pronaca is not present in sensitive areas of high biodiversity or near protected natural areas.
2013
Not available
Programs or policies are not set up yet by the firm.
Not available
Information gathering still in process
Not the management of energy available is not fully described, the amount of indirect energy consumption or the energy saved for instance.
amount of composted waste, recovered waste, deep well injection or on-site storage policies or programs.
Explanation
2013
Indicators GRI CrossReported reference/ Direct answer
G3 DMA
Description
DMA LA
Disclosure on Management Approach LA
Aspects
Employment
Fully
Pp. 21-27
Labor/management relations
Fully
Pp. 21-33
Occupational health and safety
Fully
Pp. 28-30
Training and education
Fully
Pp. 31-33
Diversity and equal opportunity
Fully
Pp. 42-44
Pp. 43-46
DMA HR
Disclosure on Management Approach HR
Aspects
Investment and procurement practices
Fully
Non-discrimination
Fully
P. 46
Freedom of association and collective bargaining
Fully
P. 69
Child labor
Partially
P. 41
Forced and compulsory labor
Fully
P. 42
Security practices
Fully
Pp. 35-36-50
Indigenous rights
Fully
P. 70
DMA SO
Disclosure on Management Approach SO
Aspects
Community
Fully
Pp. 55-56
Corruption
Fully
P. 8
Public policy
Fully
P. 8
Anti-competitive behavior
Fully
Pp. 8-31
Compliance
Fully
Pp. 18-31
Pp. 31, 35-39
DMA PR
Disclosure on Management Approach PR
Aspects
Customer health and safety
Fully
Product and service labelling
Fully
P. 31
Marketing communications
Fully
P. 29-33
Customer privacy
Fully
P. 31
Compliance
Fully
P. 31
If applicable, indicate the part not reported
Specific actions or programs to fight against child labor are missing from the report
Reason for omission
Not material
Explanation
To be reported in
The company respects the law and has joined the Global Compact principles, but does not have a specific program or actions regarding child labor yet.
STANDARD DISCLOSURES PART III: Performance Indicators Economic Performance Indicator
Description
CrossReported reference/ Direct answer
If applicable, indicate the part not reported
Reason for omission
Explanation
To be reported in
Economic performance EC1
Direct economic value generated and distributed, including Fully revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.
P. 11
EC2
Financial implications and other risks and opportunities for Fully the organization’s activities due to climate change.
P. 11
EC3
Coverage of the organization’s defined benefit plan obligations. Fully
P. 11
EC4
Significant financial assistance received from government.
Fully
P. 67
EC5
Range of ratios of standard entry level wage compared to local Fully minimum wage at significant locations of operation.
P. 13
EC6
Policy, practices, and proportion of spending on locally-based Fully suppliers at significant locations of operation.
P. 31
EC7
Procedures for local hiring and proportion of senior Not management hired from the local community at significant locations of operation.
Pp. 11-13
Market presence
Not available
Pronaca is working on the process on the regions it operates but with no information yet
2013
Indirect economic impacts EC8 EC9
Development and impact of infrastructure investments and services Fully provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
Pp. 11-13
Understanding and describing significant indirect economic Fully impacts, including the extent of impacts.
Pp. 19-20-21
67
Environmental Performance Indicator
Description
CrossReported reference/ Direct answer
If applicable, indicate the part not reported
Reason for omission
Explanation
To be reported in
Materials EN1
Materials used by weight or volume.
Fully
P. 26
EN2
Percentage of materials used that are recycled input materials.
Fully
P. 26
Energy EN3
Direct energy consumption by primary energy source.
Fully
P. 26
EN4
Indirect energy consumption by primary source.
Partially
P. 26
The indirect energy is not measured specifically
Not available
The indirect energy consumption hasn´t been measured by the company yet
2013
EN5
Energy saved due to conservation and efficiency improvements.
Partially
P. 27
The indirect energy is not measured specifically
Not available
The energy saved is not measured specifically yet by the company
2013
EN6
Initiatives to provide energy-efficient or renewable energy Not based products and services, and reductions in energy requirements as a result of these initiatives.
P. 68
Not available
There haven’t been any measurements performed
2013
EN7
Initiatives to reduce indirect energy consumption and Not reductions achieved.
P. 68
Not available
There haven’t been any measurements performed
2013
Water EN8
Total water withdrawal by source.
Not
--
Not available
Water sources significantly affected by withdrawal of water. Not
--
Not available
There haven’t been any measurements performed. Pronaca is plannig to measure its hydric footprint. There haven’t been any measurements performed. Pronaca is plannig to measure its hydric footprint.
2013
EN9 EN10
Percentage and total volume of water recycled and reused.
--
Not available
There haven’t been any measurements performed. Pronaca is plannig to measure its hydric footprint.
2013
Not
2013
Biodiversity EN11
Location and size of land owned, leased, managed in, or adjacent Fully to, protected areas and areas of high biodiversity value outside protected areas.
P. 68
EN12
Description of significant impacts of activities, products, and Fully services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.
P. 68
EN13
Habitats protected or restored.
P. 68
EN14
Strategies, current actions, and future plans for managing impacts Not on biodiversity.
--
Not material
As mentioned before, PRONACA does not have any operation near high biodiversity areas, so any strategy or program for mitigate impacts were implemented.
EN15
Number of IUCN Red List species and national conservation list Not species with habitats in areas affected by operations, by level of extinction risk.
--
Not material
As mentioned before, PRONACA does not have any operation near high biodiversity areas, so any study on red list species made.
Not available
There haven’t been any measurements performed, but Pronaca is plannig to measure this in the incoming years.
2013
Fully
Emissions, effluents and waste EN16
Total direct and indirect greenhouse gas emissions by weight.
Fully
Pp. 25-29
EN17
Other relevant indirect greenhouse gas emissions by weight.
Not
--
EN18
Initiatives to reduce greenhouse gas emissions and reductions Fully achieved.
EN19
Emissions of ozone-depleting substances by weight.
Not
--
Not available
There haven’t been any measurements performed, but Pronaca is plannig to measure this in the incoming years.
2013
EN20
NOx, SOx, and other significant air emissions by type and weight.
Not
--
Not available
There haven’t been any measurements performed, but Pronaca is plannig to measure this in the incoming years.
2013
EN21
Total water discharge by quality and destination.
Fully
Pp. 25-29
EN22
Total weight of waste by type and disposal method.
Fully
P. 26
EN23
Total number and volume of significant spills.
Not
--
Not material
As there wasn’t any kind of spill, there wasn’t any measurement performed
2013
EN24
Weight of transported, imported, exported, or treated waste deemed Fully hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.
P. 68
EN25
Identity, size, protected status, and biodiversity value of water Not bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.
--
Not material
As there wasn’t any kind of spill, there wasn’t any measurement performed
Not available
The company hasn’t developed yet a program to reclaim its products at the end of their life cycle
--
Not material
Pronaca hasn’t had any sanction
--
Not available
The measurement is still in process
Not material
Pronaca does not have a complete program to measure all its environmental impacts yet.
Pp. 25-29
Products and services EN26
Initiatives to mitigate environmental impacts of products and Fully services, and extent of impact mitigation.
EN27
Percentage of products sold and their packaging materials that are Partially reclaimed by category.
Pp. 25-29 P. 25
The indirect energy is not measured specifically
2013
Compliance EN28
Monetary value of significant fines and total number of non- Not monetary sanctions for non-compliance with environmental laws and regulations.
EN29
Significant environmental impacts of transporting products and Not other goods and materials used for the organization’s operations, and transporting members of the workforce.
EN30
Total environmental protection expenditures and investments by Partially type.
Transport
Overall
68
Pp 25-28
There are not measurements made on emissions treatment, or prevention programs.
2012
Indicators GRI Social: Labor Practices and Decent Work Performance Indicator
Description
CrossReported reference/ Direct answer
If applicable, indicate the part not reported
Reason for omission
Explanation
To be reported in
Employment LA1
Total workforce by employment type, employment contract, and Fully region.
P. 45
LA2
Total number and rate of employee turnover by age group, gender, Fully and region.
P. 42
LA3
Benefits provided to full-time employees that are not provided to Fully temporary or part-time employees, by major operations.
P. 45
LA4
Percentage of employees covered by collective bargaining Not agreements.
--
Not material
There isn’t any association or syndicate formed within the company
Not
--
Not material
There isn’t any association or syndicate formed within the company
Not available
The work fatalities per region are missing, only a global record has been kept.
Not material
PRONACA hasn’t developed this kind of career ending managing programs yet.
Not available
No detailed information about minorities or other groups is given, there hasn’t been a measurement of these two aspects yet.
Labor/management relations
LA5
Occupational health and safety LA6
Percentage of total workforce represented in formal joint Fully management-worker health and safety committees that help monitor and advise on occupational health and safety programs.
P. 51
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, Partially and number of work-related fatalities by region.
P. 51
LA8
Education, training, counseling, prevention, and risk-control Fully programs in place to assist workforce members, their families, or community members regarding serious diseases.
P. 69
LA9
Health and safety topics covered in formal agreements with trade Fully unions.
Pp. 50-51, 68
LA10
Average hours of training per year per employee by employee Fully category.
LA11
Programs for skills management and lifelong learning that support Partially the continued employability of employees and assist them in managing career endings.
LA12
Percentage of employees receiving regular performance and career Fully development reviews.
LA13
Composition of governance bodies and breakdown of employees Partially per category according to gender, age group, minority group membership, and other indicators of diversity.
P. 9
LA14
Programs for skills management and lifelong learning that support Fully the continued employability of employees and assist them in madevelopment reviews.
P. 44
The data per region is missing
2013
Training and education P. 43 --
P. 44
Diversity and equal opportunity Missing information about minorities or other groups.
2013
Social: Human Rights Performance Indicator
Description
CrossReported reference/ Direct answer
If applicable, indicate the part not reported
Reason for omission
Explanation
To be reported in
Investment and procurement practices HR1
Percentage and total number of significant investment agreements Fully that include human rights clauses or that have undergone human rights screening.
P. 69
HR2
Percentage of significant suppliers and contractors that have Fully undergone screening on human rights and actions taken.
P. 70
HR3
Total hours of employee training on policies and procedures Not concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.
--
HR4
Total number of incidents of discrimination and actions taken.
Not available
The training subjects are not specified, only the global amount of training hours are measured and reported, all subjects combined.
--
Not material
There are not workers associated
--
Not available
No measures to counter child labor have been developed yet
2013
Non-discrimination Fully
P. 70
Freedom of association and collective bargaining HR5
Operations identified in which the right to exercise freedom of Not association and collective bargaining may be at significant risk, and actions taken to support these rights.
HR6
Operations identified as having significant risk for incidents of child Not labor, and measures taken to contribute to the elimination of child labor.
Child labor 2013
69
Social: Human Rights Performance Indicator
Description
CrossReported reference/ Direct answer
If applicable, indicate the part not reported
Reason for omission
Explanation
To be reported in
Forced and compulsory labor HR7
Operations identified as having significant risk for incidents of Partially forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor.
HR8
Percentage of security personnel trained in the organization’s Partially policies or procedures concerning aspects of human rights that are relevant to operations.
HR9
Total number of incidents of violations involving rights of indigenous Fully people and actions taken.
P. 70
There hasn´t been a study Not to determine activities with available significant risk concerning compulsory labor
PRONACA respects the current legislation and the Global Compact principles, and does not allow compulsory labor
P. 70
The personnel has been Not available trained, but there is no percentage of the part that recieved the training.
The personnel has been trained, but there is no measurement of the percentage that recieved the training specifically.
2013
Security practices
Indigenous rights P. 70
Social: Society Performance Indicator
Description
CrossReported reference/ Direct answer
If applicable, indicate the part not reported
Reason for omission
Explanation
To be reported in
Community --
Not available
It is still an ongoing process
2013
Percentage and total number of business units analyzed for risks Not related to corruption.
--
Not available
No percentage is mentioned, PRONACA has joined the Global Compact and it is planning to make an internal analysis in the incoming years.
2013
SO3
Percentage of employees trained in organization’s anti-corruption Not policies and procedures.
--
Not available
No percentage is mentioned, PRONACA has many training programs but it is just setting up the anti-corruption training.
2013
SO4
Actions taken in response to incidents of corruption.
--
SO1
Nature, scope, and effectiveness of any programs and practices Not that assess and manage the impacts of operations on communities, including entering, operating, and exiting.
SO2
Corruption
Fully
Public policy SO5
Public policy positions and participation in public policy Fully development and lobbying.
SO6
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. Fully
P. 70
P. 70
Anti-competitive behavior SO7
Total number of legal actions for anti-competitive behavior, anti-trust, Fully and monopoly practices and their outcomes.
SO8
Monetary value of significant fines and total number of non- Fully monetary sanctions for non-compliance with laws and regulations.
Pp. 31, 70
Compliance P. 70
Social: Product Responsibility Performance Indicator
Description
CrossReported reference/ Direct answer
Customer health and safety PR1
Life cycle stages in which health and safety impacts of products Fully and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.
P. 35
PR2
Total number of incidents of non-compliance with regulations and Fully voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.
P. 71
PR3
Type of product and service information required by procedures, Fully and percentage of significant products and services subject to such information requirements.
Pp. 30-34
PR4
Total number of incidents of non-compliance with regulations and Fully voluntary codes concerning product and service information and labeling, by type of outcomes.
P. 71
PR5
Practices related to customer satisfaction, including results of Fully surveys measuring customer satisfaction.
P. 34
PR6
Programs for adherence to laws, standards, and voluntary codes Fully related to marketing communications, including advertising, promotion, and sponsorship.
Public policy
Marketing communications
70
P. 31
If applicable, indicate the part not reported
Reason for omission
Explanation
To be reported in
Indicators GRI Performance Indicator
Description
CrossReported reference/ Direct answer
If applicable, indicate the part not reported
Reason for omission
Explanation
To be reported in
Customer health and safety PR7
Total number of incidents of non-compliance with regulations and Fully voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.
PR8
Total number of substantiated complaints regarding breaches of Fully customer privacy and losses of customer data.
PR9
Monetary value of signiďŹ cant ďŹ nes for non-compliance with laws Fully and regulations concerning the provision and use of products and services.
P. 71
Customer privacy Pp. 34, 71
Compliance P. 71
71
72
CONTENTS SUSTAINABILITY REPORT FINAL CREDITS Procesadora Nacional de Alimentos C.A., PRONACA Responsible for the Sustainability Report 2011: Christian J. Bakker, Corporate Responsibility Manager Content Development Coordination: Ximena Almeida Cordero, Stakeholder Manager Design and Photography Coordination: Xavier Noboa, Corporate Marketing Manager EDITION Benjamin Ortiz, Chief Executive Officer. BO Asociados - Quantum Alejandra Torres Onofa, Account Manager. BO Asociados - Quantum DESIGN AND LAYOUT Norlop JWT Ecuador PHOTOGRAPHY Xavier Jรกcome PRONACA Photo Archives PRINT - OUT EQUIGRUPO
For further information: www.pronaca.com Comments: responsabilidadcorporativa@pronaca.com This sustainability report is printed on environmentally friendly and non-toxic inks, in a limited edition of 50 copies, with a digital version in order to avoid the consumption of resources affecting nature.
Sustainability Report
Procesadora Nacional de Alimentos C.A. Los Naranjos N44-15 y Los Granados (593)23946700. Quito – Ecuador. www.pronaca.com