Sustainability Report
For more information: www.PRONACA.com Comments: responsabilidadcorporativa@PRONACA.com
2
Agricultural Research and Development Center at La Josefina, 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
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
Environmental Management
25
Clean development mechanisms
25
Environmental management indicators
26
High-impact environmental initiatives
27
Recycling
27
“It’s Never Too Late to Learn” Program 59
Achievements and commitments
29
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 diversified its production in meats and other foods, and began exporting canned heartof-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
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.
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. 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 coworkers 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
Society
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 General Stockholders Board, which meets in Ordinary and Extraordinary General Board Meetings comprised by legally summoned stockholders. The General Stockholders Board meets at least once a year to address matters pertaining to the management of the Company.
The operation and structure of these two government bodies are depicted in the Incorporation Charter of the Company, and fulfill all mandates of the control agency known as the Company Superintendency of Ecuador. There are in addition, internal regulations that govern the operations of the Board. PRONACA has several executive committees that execute and provide follow-up to the various business strategies within their competencies. This corresponds to an organizational structure designed to adequately manage the risks and opportunities associated with the business.
The Board is elected by the General Stockholders Board and comprises the highest administrative authority, and has three external Directors. Among its responsibilities is to make decisions concerning financial, economic, and policy approval issues that govern the organization.
PRONACA in Ecuador
ESMERALDAS
TULCÁN
ESMERALDAS
CARCHI IBARRA
IMBABURA
PICHINCHA SANTO DOMINGO DE LOS TSÁCHILAS
SUCUMBIOS
SANTO DOMINGO
MANABÍ
FCO. DE ORELLANA
COTOPAXI PORTOVIEJO
BABAHOYO
ORELLANA
NAPO
LATACUNGA
LOS RIOS
SANTA ELENA
NUEVA LOJA
QUITO
TENA AMBATO
BOLIVAR
TUNGURAHIUA
GUARANDA
PUYO
RIOBAMBA
PASTAZA
GUAYAS CHIMBORAZO
GUAYAQUIL
SANTA ELENA
MACAS
CAÑAR
MORONA SANTIAGO
AZOGUES CUENCA
AZUAY MACHALA
PRODUCTION ACTIVITITES
EL ORO LOJA
LOJA
ZAMORA CHINCHIPE ZAMORA
INTEGRATED DISTRIBUTION NETWORK REGIONAL OFFICES EDUCATIONAL CENTER
10 10
Transparency is one of the main pillars at PRONACA.
Economic Balance
3,026
suppliers
nationwide.
196
suppliers
in the Inclusive Integrated Program.
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 Custom Duties - Imports Income tax expense Tax on outward foreign exchange Tax on rural land Municipal tax Total
Employer contributions (In thousands of US Dollars) Production employer contributions Administrative employer contributions Commercial employer contributions Total
12 12
Agricultural Corn Integration and Extension Program, Province of Los Rﾃｭos.
7.166 1,834 8.244 2.945 29 917 21,135
Year 2011 4,139 1,360 1,761 7,260
PRONACA’s growth goes hand-in-hand with its suppliers’ development. Suppliers are an essential part of PRONACA’s production chain. The provision of quality raw materials and inputs represents a process that generates sustainable business opportunities, which is concentrated at the local and national levels. The adequate mechanism of vendor selection, qualification, and registration, results in the development of those who provide services, inputs, and raw materials.
Number of Suppliers per Region (in thousands of US Dollars)
Year
2011
2010
832
844
Guayaquil - Bucay Santo Domingo Quito
756
778
1,272
1,285
166
182
3,026
3,089
Others Total
(in thousands of US Dollars)
Abroad National Integrated Total
Amount of purchases per Region (in thousands of US Dollars)
Year
2011
2010
Guayaquil - Bucay
118,000
85,000
Santo Domingo
96,000
98,000
Quito
119,000
93,000
9,000
6,000
342,000
282,000
Others Total
Purchase amount per Supplier per Origin
Number of Suppliers per Origen
Year
During 2011, PRONACA consolidated a work process focused on formalizing smaller suppliers. The Company achieved more secure and consistent business deals by eliminating only occasional deals. This initiative concentrated such efforts in Bucay (Coastal Regional Office) and in Santo Domingo de los Tsáchilas. Practices considered comprise mainly labor, environmental, and health and safety norms.
(in thousands of US Dollars)
2011
2010
284
208
2,830
2,872
196
217
3,310
3,297
Year
2011
2010
Abroad
172,000
136,000
National
233,000
191,000
Integrated
109,000
90,000
Total
514,000
417,000
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 AgrĂcola Exportadora, was founded in 1992 with the mission of exporting quality heartof-palm. A decade later, it began the project for the export of artichoke. By early 2001, it expanded its production and marketing model for heart-of-palm grown in Brazil. Presently, Ecuador is the largest exporter of cultivated heart-of-palm in the world.
Offices and Representatives France, Spain, United States, Canada, Venezuela, Argentina, Chile, Mexico, and Israel.
This achievement, supported by INAEXPO, has required investment, research, agricultural development, and knowledge of international markets. INAEXPO’s heartof-palm is produced in the subtropical areas of the country, and reaches 78 clients worldwide distributed in 27 countries spanning Asia, Africa, Europe, and the USA.
Destination countries for our products
Commercial / Production Operations
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.
Economic balance Main export products INAEXPO’s main export products are cultivated heartof-palm and artichoke, both in preserves, which are sought after by the most demanding consumers in the world due to their delicacy and quality. The production process begins where INAEXPO has implemented an integration model with small and
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
medium-sized producers from whom, through a longterm agreement, it purchases all of its production directly. Farmers who are integrated are given, in addition, quality agricultural inputs, technical assistance, training, and technological transfer.
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$) Improvement in farmers’ formality Average productivity vs. Marketing Incorporation of Environmental GMP (Good Manufacturing Practices) Investment in Ecuador (thousands of US$) Large Farmers Medium-sized farmers Small farmers Sales (thousands of US$)
Artichoke 2011 202 7,226 USD 4,968 54 385,000 1,010 657 Ruc y RIse 6.5 vs. 4.5 Manejo de desechos 7,625 23% 51% 26% 37,924
Indicators
2011
Participating farmers
150
Hectares planted by integrated farmers
811
Monthly income / farmer Technical assistance (training hours per farmer) Employment generation (workdays approx.) Families involved Average productivity Sales (thousands of US$)
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 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.
COMMITMENTS FOR 2012 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. Maintain certifications and markets. Implement improvements in agricultural, industrial, and commercial areas in order to achieve a sustained profit. 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.
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Gonzalo Moya Vice President of International Business
“INAEXPO continues to overcome obstacles�. In 2008, the world market underwent a series of impacts that caused a significant drop in certain products. Until 2011, these variations were overcome 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 production plants. INAEXPO is the only company in the world, in the heart-of-palm business, which has a plant with the correct 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 PRONACA to establish a direct relationship with individual poultry farmers. The Company provides quality raw materials for the raising of poultry (bb chicken, bird feed, vaccines, technical assistance, and training) while those integrated implement poultry equipment and a biosafety system.
The zoo-technical yield is assessed through the European Efficiency Factor, which measures the percentages of viability, daily weight gain, and feed conversion.
PRONACA provides technical assistance to farmers. Agricultural Corn Integration and Extension Program, Provinces of Guayas, Los RĂos, and ManabĂ.
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
Investment in Ecuador (thousands of US$)
Provision of vaccines, loans, and training in operational norms
24,549
Provision of vaccines, loans, and training in operational norms 23,054
*The data of the economic exercise of integrated poultry farming belong to each one of their financial exercises.
2011 was a very good year for poultry farming integration. The production results attained have surpassed those of previous years, and the profits obtained have fulfilled the expectations of over 80% of those integrated ones. Poultry farmers have been made aware of the importance of improving biosafety practices, conditions of infrastructure, and equipping of their sheds. Training workshops have been organized in order to share corporate responsibility practices with them.
20 20
Poultry farming center, Tropicales Farm, Santo Domingo de los Tsรกchilas
Integrated corn farming The integrated corn program (large, medium, and small) is focused on training corn farmers in order to achieve a more efficient and quality-oriented production following the standards that the company maintains. PRONACA has liaised with government agencies in order to generate long-term development in the fields, which has motivated trust and new opportunities for growth, especially for farmers with less than 10 hectares. Among the most noteworthy results, there are the leveraging of small farmers in knowledge and techniques on corn farming with adequate technologies, and in corn, bean, sorghum, and sunflower cultivation in order to determine the feasibility of planting during the summer through irrigation systems.
Integrated PPC (More than 10 hectares) Indicator / year
2011
Total investment amount (thousands of US$) Total number of participating farmers Products associated to the project
2010
5,256
2,567
300
293
Corn
Corn
18,086
17,007
4,987
2,511
5
4.5
75,323 1,380
62,498 986
Results achieved Area cultivated with farmers (ha) Loan recovery portfolio (thousands of US$) Average productivity (Tm/Ha) Amount of corn delivered to PRONACA (MT) Technical visits
Integrated PII (Less than 10 hectares) Indicator / year
2011
2010
Total investment amount (thousands of US$)
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
3,979 533
1,243 469
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 farming when we reached feed conversions of 1.67*. Integrated farmers have strengthened their businesses and project growth for 2012 based on state-of-the-art technology for poultry production.
Manufacturing Practices) and support of Integrated technicians. We generated a sense of belonging in the integrated farmer that yielded further trust in dealings with the company. This 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 procedures through GMP (Good * Feed conversion is the relationships of weight versus feed consumed in kilos.
COMMITMENTS FOR 2012 Support self-storage of hard yellow corn through the association of small farmers so that they may have their own drying and storage infrastructure.
Jorge Zambrano Corn farmer – Canton of Mocache
First place in Mazorca de Oro (Golden Corn on the Cob) for 2011
Foster summer corn growing through an irrigation system in order to increase their annual production and therefore increase revenues for the farmers.
“The secret to becoming Number One is to work as instructed by INDIA-PRONACA 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.
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
11,455 kilos of recycled paper.
74,193
trees planted as of 2011.
11
4,615
treatment
plants for residual water
man-hours of training in environmental culture.
implemented nationwide.
202,617
70
environmental permits observing current legislation.
tons of CO2 not released into the atmosphere as of 2011.
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 application of environmental policies that are cross-cutting to the organization. Responsible management of natural resources is a daily practice that has become an essential part of PRONACA’s work culture at its operational centers.
Between the years 2010 and 2011, PRONACA invested 1,643 (thousands of US$) in this process. It carries an environmental policy based on compliance with current legislation. Our company has made an effort to follow 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 Principles 7, 8, and 9, which contemplate development of a preventive focus in light of environmental challenges, fostering greater environmental responsibility, and encouraging development and diffusion of respectful technologies mindful of the environment, PRONACA continued the development of the gas emissions reduction project that cause the greenhouse effect. Technological changes were performed at 6 operational centers, which are framed around a comprehensive environmental management that is based on cleaner production concepts. As of 2011, PRONACA stopped releasing 202,617 tons of CO2 into the atmosphere. This is a process subject to yearly verifications and approvals by the United Nations Organization (UNO).
We are continuing with the application of the indicator model that reports the consumption of energy, fuels, and packaging, the generation of non-toxic waste, and residual waters. These comprise the five indicators that are showcased every year in order to verify advancement and compliance with the environmental policy. The procurement of 70 environmental permits has comprised a significant advance in our administration. These permits are obtained at the Ministry of the Environment and at Environmental Secretariats at local municipalities. This information is included in environmental studies performed and presented periodically, in agreement with the stipulations of the Law on Environmental Management and the Unified Text of Secondary Environmental Legislation (Tulas— in 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
Fuel
Kw-h / year Kw-h / ton pt* 2011 2011 27,471,723 5,231,100 435,062 25,770,856 7,133,321 637,517 1,499,109
270 205 38 45 550 116 148
Business
gal. fuel / a単o 2011
gal. / ton pt. 2011
Poultry Pork Commercial eggs Livestock Cold cuts Preserves INAEXPO - Heart-of-palm
27,471,723 5,231,100 435,062 25,770,856 7,133,321 637,517 1,499,109
270 205 38 45 550 116 148
* Tons per finished product.
Non-toxic waste Business Poultry Pork Commercial eggs Livestock Cold cuts Preserves INAEXPO - Heart-of-palm
Kg / year 2011 15,7121 55,870 62,848 6,00,080 153,481 16,947 92,559
Toxic waste** Kg / ton pt 2011 1.5 2.2 5.5 1.0 11.8 3.1 9.2
Poultry Pork Commercial eggs Livestock Cold cuts Preserves INAEXPO - Heart-of-palm
26
m3 of industrial m3 / ton pt residual water 2011 2011 1,072,417 111,168 8,765 115,165 125,362 78,720 161,771
Zone Coast Santo Domingo Highlands Total
4,282 4,369 1,545.5 1,019.7
BioBiopeligrosos hazardous chemical (kg) containers (kg) 2,424 12,628 726 15,778
5,486 2,138 3,383 11,007
** Final disposition: Environmental manager certified by environmental authority.
Packaging
Residual water Business
Spent oil (gal)
10.6 4.3 0.8 0.2 9.7 14.3 16.0
Business
Number of bags 2011
Poultry Pork * Tons per finished product.
43,296,713 7,195,642
Units bags/ton pt. 2011 426 281
Large-impact environmental initiatives. Continuously, the company invests in the continuous implementation and improvement of environmental control and prevention systems in order to optimize resources, minimize impacts on water and air in their areas of influence, and improve the management of solid waste. The resulting waste stemming from the various production activities that PRONACA embarks on is managed and disposed of by following procedures the observe current legislation. Inorganic waste that is not reused internally is delivered to environmental managers, certified by local authorities. Organic waste stemming from industrial plants represents the raw material for new production processes. Some is used for the production of fertilizers commercialized nationally, and is used at plantations and gardens within the company’s facilities.
Concerning pig breeding, since 2000 to-date, a system has been developed and implemented for rearing pigs with decreased impact on the environment. This system uses rice-husk beds, eliminates the use of water in the cleanup of production areas, minimizes the presence of odors, and allows obtaining organic fertilizers. There are bio-digesters at the breeding and fattening farms for the treatment of residual water. Bio-digesters at pig farms use a technology that allow for the comprehensive management of organic waste. These are closed systems that facilitate the decomposition of organic matter under anaerobic conditions, i.e., the absence of oxygen. As a result of this process, it is possible to obtain bio-fertilizers, organic fertilizers, and bio-gas. Processing based on bio-digesters represents one of the most advanced techniques employed in Ecuador, and in this aspect, 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, and energy reduction, reuse, and recycling. The same is done with reforestation, which links coworkers and their families. This initiative forms part
of the corporate volunteerism effort that seeks to motivate environmental awareness not only as coworkers 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 has been the implementation of 11 modern residual water treatment plants nationwide. As of 2011, PRONACA has invested close to $10.2 billion dollars, which comprises an example nationally concerning
adequate environmental management in this industry. These plants employ microbiological techniques to purify the residual water and allow for discharges that return back to nature to fulfill the parameters established by current environmental legislation.
ACHIEVEMENTS IN 2011 Environmental Care During 2011, PRONACA continued with the CDM project (Clean Development Mechanism). We consolidated the culture of environmental work in the organization, and we set challenges for management in excellence at national production centers. As of 2011, we have planted 74,000 trees nationwide.
COMMITMENTS FOR 2012 During 2012, we will work on the carbon and hydric footprint. To register a Clean Development Mechanism at the United Nations Organization (UNO).
Julio Aguilar Director of Operations
“PRONACA is permanently committed with the environment”. The practice of responsible production policies forms an essential part of PRONACA’s organizational culture. This is why the Company has a management model that implies a 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. 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 generate sustainable electrical energy. The physical and human investment to implement a composting system in our plants represents another 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 the creation of innovative products with attractively presented packaging. PLUMROSE strengthened its Daily Line, which responds to the needs and likes of consumers. It grew to 68,232 points of sale with its fractioned presentations, accessible prices, and an efficient distribution system. Its sales grew by 54% in relation to 2011. Since June 2011, Ecuadorian consumers can enjoy the new fractioned presentations in Mr. Pollo cold cuts with sausages and bologna, nutritional and economic products with the guarantee of PRONACA. Its excellent acceptance was reflected in brand sales at the 46,490 points of sales where it is present. This year PRONACA continued working together with the Programa Socio Solidario (Partner in Solidarity Program), through which it contributes with products that fulfill high quality and nutritional value standards to the Ecuadorians’ basic family food basket. Its sales grew 35% in comparison to 2010, and its products were present in over 36,900 points of sale nationwide. The portfolio for Mr. Chancho fractioned products consolidated its presence at the dinner table of Ecuadorians. Its sales registered a 105% increase in comparison to 2010, as a show of trust and preference by Ecuadorian families. Similarly, ready-to-bake Mr. Pavo turkey breast was launched this year intended for modern housewives who wish to maintain family tradition and save time in food preparation. In order to diversify the daily menu of Ecuadorian families along with economic, nutritional, and easy to
prepare menus, PRONACA broadcast Te Queremos Mejor Alimentado TV (We Want You Better Nourished) (TQMA.TV). During this second season, PRONACA delivered 40 new menus costing between US$ 0.60 and US$ 1.00 per serving. The quick preparation channel presented a growth of 8%, which responds to PRONACA’s commitment with its customers, by offering quality, reliable products, which are in addition profitable for the individual businesses. In the pet business, during 2011, Ecuadorian consumers awarded our efforts in developing nutritional and quality products for dogs, with an increase of 9% in comparison to 2010 in PROCAN sales. Furthermore, the company set the bases for the PRONACA Pet Care and Nutrition Research and Development Center. With an investment surpassing 1 million US dollars, this complex was created to foster the study and creation of new healthy and quality pet food. In order to comply with the standards of launching new products, PRONACA conducts blind tests in order to determine which products will be launched to the market with less than 70% customer acceptance. All products reaching the final consumer comply with labeling and sanitary legislation, and its labels contain information on the nutritional value, date of manufacture and expiration, list of ingredients, sales price, commercial brand, and further data demanded by current legislation. During 2011, PRONACA did not report cases of labeling incompliances. PRONACA ethically respects consumer rights, and its advertising 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 Better Nourished) recipes, PRONACA broadcast over 19,519,000 spots on TV, radio, press, and the Internet.
demand for these products and in order to reach the base of the pyramid with the Mr. Cook brand. Market share in the cat food segment.
PRONACA opened the doors to its new value/ added product plant in order to satisfy the growing
COMMITMENTS FOR 2012 For 2012, the presence of the quick preparation channel will 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 member in its family when fish products join in. Its great taste and affordable prices place them among the most preferred foods by consumers. PRONACA will continue contributing to the diet of Ecuadorian families with its portfolio of functional food with products such as Indaves Eggs with Omega 3.
Juan Maya Marketing Director
“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.
Sofía Paredes Owner of BigMarket Quito “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”.
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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.
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•1
Content
Target Public
Print-Run 2011
Print-Run 2010
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.
Consumers
690,000 copies, 5 editions
760,000 copies, 5 editions
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.
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
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
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.
*We Want You Better Nourished.
36,000 copies, 6 editions
Social balance Contact center
Complaints and claims
During 2011, PRONACA adequately handled complaints and claims from clients and consumers, thus demonstrating its commitment of guaranteeing healthy and quality products.
PRONACA has a quick and efficient process to provide answers in the shortest time possible, to concerns, 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 19,338 445,185 8,307 7,567
Contacts 2010 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 Marketing (1) Quality (2) Service (3) Total
Complaints 2011 18 528 210 756
% Complaints 2010 2% 70% 28% 100%
2 542 167 711
% 0% 76% 23% 100%
(1) Advertising, damaged labels, nutritional information, promotions. (2) Damaged product, expired product, damaged packaging, misrouted. (3) Service, delivery, dispatch.
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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 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
Total # of analyses performed during 2011 to guarantee compliance in quality and harmlessness in all PRONACA brands. 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
Number of total analyses
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 scientific follow-up studies, which are process-strict and delineated by HACCP plans (Hazard Analysis for Critical Control Points, which is a system that identifies, evaluates, and controls hazards that are significant for food safety), which are shown per sector below:
INAEXPO heart-of-palm: Heart-of-palm, whole or in preserves (canned or in glass jars). Heart-of-palm sub-products in preserves (canned and in glass jars). Poultry: Poultry Plant at YaruquĂ: (1) Chicken slaughtering and cuts. (2) Turkey slaughtering and cuts, broilers, and roasters. Poultry Plant at Valle Hermoso: (1) Chicken slaughtering and cuts. Poultry plant at Bucay: (1) Chicken slaughtering and cuts. 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. GMP-certified 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 worldrenowned food code.
36
Operational centers continue being certified and have implemented an auditing system. During 2011, scores obtained with the GMP norms at the Coast and South of Ecuador, were highlighted. 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 to have certifications obtained in order to guarantee food safety of products. Concerning seafood products, these suppliers have certifications from: 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 In the case of external suppliers of preserve products, these have certifications in: FACUNDO: HACCP
Certifications at operational centers to-date. Poultry Op. Center
Certifying Agency
Validity of Certificate
Type of Certification
Certification Criteria
Plant at YaruquĂ
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
Pork Plant (Frimaca)
ISO 22000:2005 Regulation GMP 3253 - Ecuador
ISO 22000:2005 Regulation GMP 3253 Ecuador
Pork Certifying Agency SGS MSP
Validity of Certificate 2014 2014
Cold meats and Added Value Op. Center
Type of certificate
Certification Criteria
Certifying Agency
Validity of Certificate
Cold meats Pifo (Carnasa)
Regulation GMP 3253 Regulation GMP 3253 - Ecuador Ecuador ISO 22000:2005 ISO 22000:2005
MSP SGS
2014 2014
PRONACA Guayaquil (Ecuadasa)
GMP (Good Manufacturing Practices)
SGS
2013
Codex Alimentarius
Social balance Eggs Op. Center
Type of certificate
Certification Criteria
Carcelén Classifier
GMP (Good Manufacturing Practices)
Codex Alimentarius
Certifying Agency SGS
Validity of Certificate 2014
International Op. Center Heart-of-palm
Artichoke
Type of certificate HACCP (Hazard Analysis Critical Control Point) ISO 22000:2005 IFS HACCP (Hazard Analysis Critical Control Point) IFS
Certification Criteria
Certifying Agency
Validity of Certificate
Codex Alimentarius ISO 22000:2005 IFS
ECOCERT SGS ECOCERT
2013 2015 2013
Codex Alimentarius IFS
ECOCERT ECOCERT
2013 2013
Livestock Business Type of certificate
Certification Criteria
Certifying Agency
Validity of Certificate
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
Op. Center
Distribution Centers - Logistics Type of certificate
Certification Criteria
Certifying Agency
Validity of Certificate
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
Op. Center
38
SUCCESS CASE PRONACA began the certification of Good Manufacturing Practices based on the GMP Regulation for Ecuador N° 253 published in Official Registry 696, with the Ministry of Public Health, on February 2008. Joint timely work performed together with the National Association of Food and Beverage Manufacturers made 2011 the year in which the poultry, pig, value-added – Pifo, and heart-of-palm plants were audited and achieved the certification.
PRONACA led this process and obtained 6 concurrent certifications, making it the first company in Ecuador to fulfill this legal requisite. These certifications help us to better handle the postcontrol criteria for registering products exercised by the Health Authority, having Certificates recognized by regulating agencies from other countries, and taking national regulation 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 obtained the highest level of certification for the IFS Norm (International Food Standard), required for international clients.
Poultry processing plants initially HACCP certified showed improvement due to the ISO 22000:2005 certification.
COMMITMENTS FOR 2012 Work together on the ANFAB with the MCPEC and the MSP toward a change in 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 scheme at operational centers.
Ricardo Vargas Department Head9, Quality Systems
“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. 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 Tsรกchilas.
Biosafety PRONACA applies a strict Animal Biosafety and Wellbeing System in every process in the rearing of pigs and chickens with the purpose of ensuring the health and well-being of the animals, which forms the basis for healthy food production. Implementation of these measures guarantees that animals that are reared in farms, remain healthy, which ensures the health of consumers.
This procedure, cross-cutting to all operational centers, implies restricting visits, use of appropriate working clothes and equipment, mandatory showers prior to any entry, washing of hands, constant health monitoring of all co-workers, among various measures as to avoid any type of contamination risk.
Animal Well-being Within the standard that PRONACA implements, animal well-being is a key factor. Strict care during the rearing stage, transport and processing of chickens and pigs, achieves a lowering of animal stress levels to a minimum. The company controls rest time prior to processing. We comply with standards that ensure care and treatment in production sheds, loading and unloading ramps, population density, location, cleaning time, amount of water and food, among other factors that determine that the animal meat is healthy and of
40
excellent quality. During 2011, PRONACA maintained its animal well-being standard in the chicken and pig farms. PRONACA has a research center for the pet food business associated to the Pro-Can and Pro-Cat brands. The AVANT Center allows performing research and development so that pet food may be high quality food. This center fulfills and observes good animal treatment parameters for dogs and 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 the Global Pact has as its core principle respect for Human Rights, in reference to Principles 1 and 2. Its performance is focused on people above all, and it is because of this that it develops policies that foster favorable conditions and promote professional growth in its people.
During 2011, our company was consolidated as one of the companies that generated 7,734 direct jobs. Distribution of these jobs was done as follows: 32% in the Coastal region; 35% in the Highlands; and 34% in the Province of Santo Domingo de los Tsรกchilas. Business performance has 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 Total Coast Highlands Total Highlands Nationwide
Type
ADM
EXEC
Fixed Fees Occasional Internship
731 9 29 1 770 723 17 26 5 771 1,454 26 55 6 1,541
2 1 0 0 3 34 7 0 0 41 36 8 0 0 44
Fixed Fees Occasional Internship Fixed Fees Occasional Internship
Total general
MIX 559 0 56 0 615 355 0 69 0 425 914 0 125 0 1,039
OPER
Total
3,519 0 110 0 3,629 1,433 0 48 0 1,481 4,952 0 158 0 5,110
4,811 10 195 1 5,017 2,545 24 143 5 2,717 7,356 34 338 6 7,734
*Data presented include INAEXPO co-workers.
Region Coast Highlands Sto. Domingo Total general
No. of persons 2,453 2,670 2,611 7,734
% 32% 35% 34% 100%
Total number of co-workers and average turnover Number of co-workers and turnover
42
2011
2010
Número total de empleados que Total number of co-workers han dejado el trabajo durante el that have resigned during the período reportado reported period.
11.23% Accrued 0.94% Average
11.03% Accrued 0.92% Average
Número y rango de empleados Number and range of coque han dejado el empleo workers who have resigned durante el período reportado during the reported period.
1,632 persons total 136 persons on average
1,461 persons total 122 persons on average
Número total de empleados al Total number of co-workers at final del período reportado the end of the reported period.
Calculation with 7,175 persons on average/month
Calculation with 6,082 persons on average/ month
Continuing Education System; PRONACA co-workers.
Continuing education The company centered its efforts and actions in the development of its great human capital. Working alongside its co-workers, it developed and implemented plans that create added value for industrial processes and the generation of quality professionals in Ecuador. Through the area of Organizational Development, PRONACA is executing the Training Plan, which has generated alliances with Educational Institutions and first-rate Training Providers. The training includes Postgraduate Studies (Degrees and Masters
Employment
Programs) that are executed with the best universities and institutions, which insures the development of the course of study of our co-workers. During 2011, the company contributed with 70% and 90% of the training costs of our co-workers. Among the most noteworthy aspects of this endeavor is the implementation of the Continuing Education System, which is focused on the development of behavioral competencies and techniques that seek the comprehensive growth of co-workers personally and professionally.
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 Year
No. of Persons Evaluated
2007 2008 2009 2010 2011
1,329 1,633 2,062 2,012 2,117
% of total co-workers
% 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
575 811 46 1,432
Total general
2,594 3,411 297 6,302
3,169 4,222 343 7,734
Percentage of income per position Year
Administrative
2010 2011
45.67% 45.70%
Executive 12.12% 11.05%
Mixed 10.15% 10.27%
Operations
Total
32.06% 32.97%
100% 100%
Percentage of income per level and gender Year 2010 2011
Administrative
Executive
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%
PRONACA has valuable co-workers in various regions of the country. Each one is the visible face of the company in reference to the client and final consumer. During 2011, PRONACA executed an Organizational Climate and Culture Study along with a psycho-social survey that reached 88% of the company’s population, thus achieving majority participation and significant results for the planning of co-workers’ well-being.
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Mixed
Operations 32.06% 32.97%
Total 100% 100%
PRONACA executed a Development Evaluation (basically measuring organizational competencies), with a participation of 99% in administrative areas (this evaluation is not performed at the operational level). We were able to ascertain proof of a significant growth of 87% regarding competencies in comparison with last year’s 86%. This indicator is vital in measuring the positive impact of internal training.
Employment benefits The company complies with current national legislation, nonetheless, our co-workers have additional benefits such as private health care and life insurance, savings accounts, which is optional, the PRONACA store, and membership cards for supermarkets and pharmacies.
The uniform is established as a benefit for the feminine staff, sales, and messengers. The personal injury insurance policy is for all organizational levels, depending on the valuing of the job position.
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 Benefits 2011
Christmas basket Uniform Work clothes PRONACA store Supermaxi card Fybeca card
Type of Job Position OPE MIX ADM EXEC Services 2011
Meals Transport Medical Services Best in operations
Acknowledgments Seniority 2011 Honorable mention Golden Rooster
Results-oriented work is one of PRONACA’s keys for success.
Human work designed to improve the lives of our co-workers The company worked hard to gather socioeconomic data that could provide information on co-workers and their families. In order to do this, PRONACA created a nationwide team of 12 professionals called the Social Work Team for the three regions covering our operations. Our social workers address issues shown below as part of a comprehensive procedure focused on verifying the situation of families: 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
Inclusion of persons with disabilities Intent on the purpose of promoting and strengthening observance of the rights of persons with disabilities, PRONACA has worked towards achieving the equitable inclusion of 275 co-workers with disabilities as of 2011. PRONACA received on behalf of the Office of the Vice President of Ecuador and of the Ecuadorian General Foundation, a business acknowledgment for best practices in social and labor reinsertion for persons with disabilities for this period.
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 efforts of company co-workers. During 2011, we evaluated the work of 658 co-workers. We evaluated:
The minimum time a co-worker must remain in the company in order to reach this recognition is 5 years. This is an event that recognizes seniority and is applied to every level in the 10, 15, 20, and 25-year categories.
Teamwork. Results-oriented work and service. Communication. Innovation and creativity. Self-development and organizational knowledge.
2011 Golden Roosters Acknowledgment Wood plaques Glass plaques Golden Rooster Large Golden Rooster Glass plaques Gold plaques Silver plaques
Category 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 Total Awards
Awardees 80 21 20 7 4 209 317 658
Internal communications system through digital displays, Inverna Building, Quito.
Internal Communications PRONACA successfully implemented the digital display pilot project in two operational centers of the company: at the Inverna Building (head office) and at the Southern Quito Distribution Center. Through this pilot, PRONACA seeks to standardize message broadcast in the various operational centers with updated and pertinent information for each center, keeping all co-workers apprised of relevant issues. The information is transmitted through the internet via appropriate software and equipment. During 2011, we reached approximately 750 persons between both operational centers. Starting on 2012, this initiative will be extended to other centers nationwide.
Other communication tools Pronoticias’ (Pronaca news): 4 issues per year with a total circulation of 7,500 magazine, i.e., one per every co-worker. The Pronoticias corporate magazine includes the bulletins “My Plant, My Job”. Its pages depict the life of the organization in general terms and those of certain operational centers specifically. It offers historical information on the company, answers questions on procedures and internal practices, and addresses pertinent issues of PRONACA.
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.
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Social balance ACHIEVEMENTS IN 2011 Organizational Development The company drove the development of a School for Internal Facilitators in order to capitalize on the knowledge and experience of its outstanding co-workers and thus multiply knowledge. We held alliances with noteworthy institutions in the country in order to lead processes for learning and transfer of knowledge directed at specific needs of the company, equipment, and persons. We signed medium-term interaction agreements in order to guarantee quality education with institutions such as INDEG, ADEN BUSINESS
SCHOOL, and the Agricultural School.
Zamorano
Pan-american
PRONACA offered its executives the “Comprehensive Updating Program” in which high-ranking specialists of the company share knowledge and experiences with our top executives in order to hone our management skills by using the most advanced Human Development and Business tools. “It’s Never Too Late To Learn” is a project PRONACA continued for those co-workers who did not finish their elementary or high-school studies.
COMMITMENTS FOR 2012 Lorena Vallejo To work together on the ANFAB with the MCPEC and MSP in order to lobby for a legislative change to obtain the Sanitary Registry through GMP.
Cost Accounting “Equality among co-workers is PRONACA’s priority”
To define a measurement index as a parameter for Quality Assurance.
Respect and equality for all of us working at PRONACA is the main characteristic of this Company. For nine years I have developed my activities normally since I have been given the necessary tools here to do so.
To maintain the certification and auditing process at operational centers.
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.
50 50
2011 was noted for work performed in risk prevention at the jobsite. Within the area of Occupational Health and Safety, PRONACA concentrated its efforts on the management of incident control as the basis of accident prevention. The Company executed safety promotion campaigns.
As part of the new scheme of medical services, we inaugurated the Bucay Regional Medical Dispensary, which was followed by the same model for the Santo Domingo Regional operations. PRONACA redefined and standardized the Health Monitoring Plan for the control of work-related diseases.
In order to decrease work-related accidents, PRONACA implemented and promoted safe attitudes and behaviors as an ongoing Company program. The result of this work was a full year without major accidents or fatalities. The company began observing in April the World Day of Occupational Health and Safety.
With the purpose of strengthening emergency readiness, PRONACA trained brigadiers for the control of fires, evacuations, and first aid. The company began the paperwork for renewal of Regulations and Registration of Occupational Health and Safety Committees.
PRONACA co-workers have the necessary tools and instruments to minimize work-related risks. Grain sorting machine, Rice peeler, Durรกn.
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 1 Central Committee 75 Subcommittees 22 Subcommittees 348 co-workers out of 5,539 138 co-workers out of 4,833
INAEXPO Central Committee.
1 Central Committee 1 Subcommittee 12 co-workers out of 907
Rates
Accidents (1)
Possible occupational diseases (2)
Lost time days (3)
Absenteeism (4)
2011
2010
7.51
7.65
1 Central Committee 1 Subcommittee 12 co-workers out of 825
Results 124 AR during 2011, with 16,508,300 co-worker/ hours worked
32.16
44.02
531 possible occupational diseases with 16,508,300 co-worker/hours worked
109.33
90.77
2010 – 2011 variation (12,098) - (14,128); absenteeism increased
855.8
729.67
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$)
2011
2010
Industrial Safety PPE Industrial hygiene Health
300 841 30 0
298 713 22 109
Total
1,172
1,143
94 108 125 28 355
37 51 167 10 264
1,527
1,407
Health Card Medicines Health Monitoring Health Promotion Total Total SSO
Drills
2010
89% 89% Operational centers 100% 94% Drill compliance Nยบ of co-workers evacuated 11,295% 9,525% 87% 74% % of co-workers evacuated
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 Network, The Ecuadorian Consortium of Social Responsibility, (CERES), and the Business Council for Sustainable Development of Ecuador (CEMDES), in order to strengthen and drive corporate responsibility in Ecuadorian Society.
During 2011, PRONACA exchanged knowledge and shared experiences with public and private sector companies, fostering the importance of business sustainability. At the same time, it maintained cooperation bonds with 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 20102012.
CEMDES Business Council for Sustainable Development of Ecuador.
2011 Elections, Presidency of the Global Pact Network, Ecuador Chapter.
Global Pact, 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 Tsรกchilas 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 awarenesscreation 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 Cumandรก 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
2,686
61
hours of social volunteering.
hours of environmental volunteering.
social-action institutions involved.
114
18,986
graduates and 10 graduate classes.
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, and training of small entrepreneurs, are the four areas targeted by the educational model of the Fundaci贸n San Luis at the Educational Units of San Juan de Bucay and San Pedro de Valle Hermoso.
These centers, where PRONACA co-workers children attend together with youngsters from neighboring communities, offer high-level elementary and highschool education in rural areas. During 2012, the San Pedro de Valle Hermoso Educational Unit will graduate its first group of students.
58 58
Information / Educational Units
Total
Community
PRONACA
Graduates
San Juan de Bucay
375
63%
37%
114
10
San Pedro de Valle Hermoso
293
68%
32%
0
0
Promotions
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 highschool 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 Total Netpa
77 428
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 Fundaci贸n San Luis including the Food Bank.
The Fundaci贸n San Luis works with charitable foundations and institutions in a self-managing system
City
Babahoyo Cayambe Cuenca Esmeraldas Guayaquil Ibarra Manta Quito Santa Elena
Number of Foundations
that allows delivering food to more people, thus expanding its coverage.
% Coverage
Persons Benefited
% Benefited
Sto. Domingo
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%
Total
61
100%
18,986
100%
*Data Fundaci贸n San Luis, including the Food Bank.
Volunteering During the last period, PRONACA created work teams called PROvolunteers in order to manage activities of social and environmental support led by the Fundaci贸n San Luis. The Company highlighted reforestation programs in Quito and in Guayaquil.
60
Another important project is the personal support minimally-disabled PRONACA co-workers offer other institutions and foundations as part of their work. In this manner, these organizations receive support in their tasks by generating new spaces of employment for persons with special capacities.
ACHIEVEMENTS IN 2011 Volunteering Pronaca built four laboratories at each one of its educational centers. Today, the Educational Units of San Juan de Bucay and San Pedro de Valle Hermoso each boast specific facilities and equipment for their
COMMITMENTS FOR 2012 To deliver daily rations of nutritional food, and expand coverage of the number of persons attending the institutions with which Fundación San Luis works. To offer opportunities to improve quality of life and help in solidarity by increasing corporate volunteering to 8,000 hours. To implement two academies in English and Computer Science at each one of the Educational Units. To train 640 parents in issues related to the integral rearing of children and youngsters.
Biology, Chemistry, and Physics courses, along with other audiovisual equipment. 428 co-workers participated in the Netpa Program.
Paúl Barrera Production Supervisor Avepica Incubator
“I am a great professional thanks to the support given to me by PRONACA” My relationship with PRONACA began 14 years ago when I had the opportunity to study high-school at the San Juan de Bucay Educational unit. The children of PRONACA co-workers children and the youngsters from the community attended this school. 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 the Escuela Superior Politécnica del Litoral, where I studied 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 is missing information
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
4.5
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
Partially
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
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.
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
As mentioned before, PRONACA does not have any operation near high biodiversity areas, so any strategy or program for mitigate impacts were implemented.
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
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.
Transport 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.
Overall EN30
68
Total environmental protection expenditures and investments by Partially type.
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
Labor/management relations 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.
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
The data per region is missing
2013
Training and education 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.
P. 43 --
P. 44
Diversity and equal opportunity 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
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.
--
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 HR4
Total number of incidents of discrimination and actions taken.
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.
Child labor HR6
Operations identified as having significant risk for incidents of child Not labor, and measures taken to contribute to the elimination of 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.
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 HR8
Percentage of security personnel trained in the organization’s Partially policies or procedures concerning aspects of human rights that are relevant to operations.
Indigenous rights HR9
Total number of incidents of violations involving rights of indigenous Fully people and actions taken.
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 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.
--
Not available
It is still an ongoing process
2013
Corruption SO2
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.
--
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.
Pp. 31, 70
Compliance SO8
Monetary value of significant fines and total number of non- Fully monetary sanctions for non-compliance with laws and regulations.
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
Public policy 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
Marketing communications PR6
70
Programs for adherence to laws, standards, and voluntary codes Fully related to marketing communications, including advertising, promotion, and sponsorship.
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 significant fines 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
This memory of sustainability has been printed in friendly paper with the environment and non-toxic inks.
72
Sustainability Report
Procesadora Nacional de Alimentos C.A. Los Naranjos N44-15 y Los Granados (593)23946700. Quito – Ecuador. www.pronaca.com