Crop years 2010/2011 and 2011/2012

Transcription

Management and Sustainability Report
Crop Years 2010/2011 and 2011/2012
Avenida Paulista, 287 | 1º, 2º and 3º floors
01311-000 | São Paulo | SP | Brasil
Telephone +55 11 2618-8166
www.copersucar.com.br
-capa_INGLES.indd 1
8/17/12 1:41:54 PM
Introductory note
This Management and Sustainability Report contains statement of the Company’s main advancements
in governance, strategy and performance over the last three years, referring to the mandates of the
Board of Directors and Executive Board, as well as the presentation of the sustainability performance
indicators in accordance with the guidelines and criteria of Global Reporting Initiative G3 for the period
from April 2010 to March 2012. This edition provides continuity to the first published report, now
screened through external verification (B+ level) with the seal of the auditing firm BVC.
The financial statements of Copersucar S.A., for the financial year ended at March, 31, 2012, can be
found at www.copersucar.com.br/informacoes_financeiras_en.html
Summary
1.Messages...............................................................................................................................................5
2. Reporting and materiality ................................................................................................................. 11
2.1 Evolution in the reporting process............................................................................................................ 12
2.2 Construction of the materiality matrix..................................................................................................... 13
2.3 Material themes for stakeholders.............................................................................................................. 15
3. The Company....................................................................................................................................... 19
3.1 Efficiency in supply, commercialization and logistics..........................................................................20
3.2 Corporate structure...................................................................................................................................... 21
3.3 Operational structure.................................................................................................................................. 22
3.4 Evolution of the business model............................................................................................................... 25
3.5 Business strategy.......................................................................................................................................... 26
3.6 Transparency in business............................................................................................................................ 27
3.7 Logistic efficiency......................................................................................................................................... 35
3.8 Ethics and governance................................................................................................................................ 42
4. Sustainability at Copersucar........................................................................................................... 55
4.1 Challenges and opportunities....................................................................................................................56
4.2 Governance of sustainability ...................................................................................................................58
4.3 Engagement in practice..............................................................................................................................60
4.4 Commitments with sustainability.............................................................................................................. 62
5. Material themes for stakeholders.................................................................................................... 65.
5.1 Transparency in business............................................................................................................................66.
5.2 Ethics and governance................................................................................................................................66.
5.3 Product responsibility..................................................................................................................................66.
5.4 Health and safety.......................................................................................................................................... 72
5.5 Climatic changes........................................................................................................................................... 78.
5.6 Conservation of resources and biodiversity...........................................................................................84
5.7 Human rights and the value chain............................................................................................................ 92
5.8 Generation of co-products..........................................................................................................................110
6.Declarations.......................................................................................................................................116
6.1 GRI Application Level Statement..............................................................................................................116
6.2 Independent Assurance Statement.......................................................................................................... 117
7. GRI remissive index.........................................................................................................................122
8.Glossary.............................................................................................................................................130
9. Partner Mills (June 2012)............................................................................................................... 132
10. Management – Copersucar S.A....................................................................................................... 139
Messages
Messages
Messages
Copersucar is ready to meet the today’s challenges and to continue growing,
with operational excellence, competitiveness, profitability and sustainability.
The economic, social and environmental pillars provide support to results that
have been reached and to future projections.
Advancements in governance
[1.1, 1.2]
In presenting its second Management and Sustainability Report to the market and to society, now
screened through external verification of its indicators and forms of management, Copersucar reaffirms its commitment with the Company’s sustainable development and Brazil’s sugar-energy sector.
It also reiterates its conviction that, in spite of the
conjunctural setbacks faced in recent crop years,
the sugarcane industry is at the verge of a new virtuous cycle, with generation of value throughout
the productive chain and significant environmental
and social gains.
The reasons behind this optimism are predicated on
the quality of results presented by Copersucar, as
well as on the analysis of the future scenario that
shows to be, underpinned on a robust investment
and competitiveness recovery program, with overcoming of adverse conjunctural conditions.
We firmly believe in the expansionist and enterpreneurial spirit that guides the sugar-energy
sector in Brazil. We are the country with the best
productive capacity and expansion margin, owner of natural resources and broad technology
expert, which provides us with conditions to further optimize the exploitation of sugarcane as a
clean and renewable source of food and energy
for the planet.
Essential for any expansion, the demand both for
sugar and ethanol shows continuous growth. In addition to the environmental benefits from the use
6
of ethanol, the cultivation of sugarcane has great
potential of expansion of its productivity, not only
from gains in agricultural, industrial and logistic
processes, but most importantly with the introduction of disruptive technological innovations, such
as new plant varieties and the production of second
generation ethanol.
It is in this context that Copersucar stands out as a
differentiated player in the sugar-energy sector,
ready to respond to current challenges and to continue to grow. It has achieved this with operational
excellence in the logistic integration of the value
chain, competitiveness in the markets, profitability
in results and sustainability in the harmonization of
the economic, social and environmental pillars,
which provide a solid base to its current accomplishments and to future projections.
Over the last three years, we have improved our
corporate governance model. In this sence, we
have strengthened management tools in line with
pertinent legal requirements for Corporations and
the best market practices, having in view the perspective of having the Company listed in
BM&FBovespa’s New Market. Faced with the unfavorable circumstances in the global financial market that precipitated since July 2011, the company’s
initial public offering project was postponed, with
the preservation of advancements incorporated
into the management model. A few of the main
changes were the introduction of independent
members in the Board of Directors and the elaboration of quarterly reports on economic and financial performance, although these are not disclosed
to the market.
Management and Sustainability Report | Crop Years 2010/2011 and 2011/2012
Messages
Protected by the high level of corporate governance
and the clarity of the strategic orientation, established by the shareholders and set in motion by the
executive board, Copersucar’s unique business
model has enabled us to reach a favorable performance in face of adverse market conditions and to
establish as goal world leadership in the sugar-energy sector, outperforming the main sector indicators. The results obtained from the latest crop years
and presented in this report prove the assertiveness
of our model, which values scale and competitiveness. The Company’s structure provides for logistic
efficiency, while the Partner Mills ensure regularity
of supply to meet global demand for sugar and
ethanol. With the partnership of 50 producing (nonpartner) mills we were able to further increase product volume to meet customer needs, resulting in
what we call the “consolidation of supply”.
In its commercialization operation, Copersucar
has defined as its main mission the continuous
engagement of the Partner Mills. The objective is
to promote each unit’s evolution in good socioenvironmental and management practices of its
impacts. Since we began the work, we have already noticed significant results, especially in relation to defined priority themes like greenhouse
gas (GHG) emissions, water resources and biodiversity. Another important highlight of the engagement is the Bonsucro™ (Better Sugar Cane
Initiative) certificate obtained by five of the 48
Partner Mills. Bonsucro™ certification analyzes
good social and environmental practices in the
production chain and is required by the international market. This relevant conquest is summed
up to the prior approval of 39 Partner Mills in the
registration of Renewable Fuel Standard (RFS2),
North American standard of environmental requirements for ethanol importation, as well as in
the registration with the California Air Resources
Board (CARB), which requires adaptation of products to Low Carbon Fuel Standard (LCFS).
Thus we reaffirm our vision that sustainability is a
premise for business perpetuity, as value generation
factor throughout the entire chain, from mills to end
customers.
With a portfolio that, strictly, follows globally established standards and is not differentiated from
other competitors in the commodity markets in
which it operates, Copersucar excels for the quality
of relationship that it maintains with its diverse publics of interest, which constitutes a decisive factor
for the establishment of long-lasting ties. With the
purpose of adding value to these relationships and
to reach the strategic ambition of world leadership
in the commercialization of sugar and ethanol, the
Company has been investing heavily in scale, efficiency and responsible performance, contributing
so that Brazil may continue to exercise its lead role
in the global sugar-energy sector.
This course of success would not have been possible
without the trust and support of shareholders, the
integrated work along with Partner Mills, the dedication and endeavor of employees and closeness with
the customers. Thus, we extend our gratitude to
everyone associated with Copersucar’s business
and we reiterate our firm belief in the promising
future that we have ahead.
Luís Roberto Pogetti
Chairman of the Board of Directors
Copersucar S.A.
7
Messages
With positive economic performance, we confirm the assertiveness of our
business model, based on the balance in the chain, and we seek to keep
abreast with the market to identify new operation opportunities and to
maintain profitable growth. [1.1, 1.2, 2.7]
Results and perspectives
In the crop years 2010/2011 and 2011/2012, the Brazilian sugar-energy sector went through an accommodation process, with retraction in investment volume,
after years of heavy financial contribution, and crop
failures caused by climatic variations, which greatly
punished agricultural performance. However, the potential demand did not stop growing, particularly in
the ethanol market, due to increase in the fleet of
flex fuel vehicles and the growing recognition of biofuel through its contribution to the environment.
The perspectives for the forthcoming crop years,
however, are positive for the country. The resumption of growth is planned, with new round of investments, renewal of sugarcane plantations and perspective of increase of productivity per hectare. To
meet the market’s growing demand, Brazil must
double its production.
At Copersucar, many of the Partner Mills are already
modernizing and expanding their agricultural and
industrial units. Currently, our national market
share is 22%, and we intend to reach 30% in the
Central-Southern region by 2015. With a long-term
vision, we seek to anticipate market demands and
trends and to adapt ourselves to the requirements
of different countries where we operate.
Quality and efficient distribution of products is the
main focus of the company’s investments. From total of the scheduled BRL 2 billion, Copersucar con-
8
tributed over BRL 300 million on logistics in the last
two crop years, favoring its competitiveness and
adding value to the productive chain. During this
period, we placed in operation the Ribeirão Preto
Multimodal Terminal, started the expansion of the
Copersucar Sugar Terminal (TAC) in Santos, and
formalized our share in the company Logum, responsible for the construction of the ethanol pipeline with the capacity to transport over 20 billion
liters of ethanol from the countryside of São Paulo
to the coastal region of São Paulo and Rio de Janeiro. This investment cycle will extend up to 2015.
In the last two years the economic and operating
results were good for Copersucar despite of crop
failure that marked last period. In the last two crop
years, the company increased its supply by 28% (in
terms of equivalent sugarcane crushing). We ended
2011/2012 with 7.0 million metric tons of sugar and
3.7 billion liters of ethanol commercialized. We were
responsible for the transaction of 24% of the total
sugar production in the country. [2.8] In the ethanol market, we commercialized what is equivalent
to 18% of Brazilian production. We ended the crop
year 2011/2012 with net revenues of BRL 11.2 billion,
which corresponds to an accumulated growth of
35% over the previous period and three times the
billing obtained in the crop year 2009/2010.
We attribute the results to our differentiated business model, which balances productive efficiency
and scale. With 48 Partner Mills, we are integrated
to production, which enables us to negotiate prod-
Messages
ucts in advance. Today, 80% of sales are performed this way, through short, medium and longterm contracts. Partnership with about 50
non-partner mills further increases product volume, which, summed up to our logistic structure
ensures the meeting of demands of customers in
Brazil and worldwide, business profitability and
increase in market share.
We have increased our presence in strategic regions
and with growing sugar consumption, such as Asia
and the Middle East. We have also intensified ties
with trading partners in the United States, particularly after the opening of the North American market to Brazilian ethanol, which the Environmental
Protection Agency (EPA) considered as an advanced
fuel and with the lowest greenhouse gas (GHG)
emission rate. The end of the tariff barrier opens
new prospects to the Brazilian industry with significant impact in the long-term, since the United
States has advanced fuel use goals and a consumer
market twice larger than Brazil’s.
date its long-term relationship with customers and
to continue investing in its team and sharing our
strategic vision – that of maintaining a high growth
rate through an innovative and balanced business
model focused on the future.
For all these conquests, we thank the trust deposited
in us by our shareholders and customers, the endeavor and dedication of our employees and suppliers, and we reaffirm commitment with the strategic
objectives of continuous and sustainable growth for
Copersucar and all the links in its value chain.
Paulo Roberto de Souza
Chief Executive Officer
Likewise, the recognition of high sustainability standards, obtained with the Bonsucro™ certificate consolidates Copersucar’s relevance as a global player
and values its sustainable operation throughout the
entire productive chain.
For the crop year 2012/2013 the perspective is one
of recovery in the price of commodities and a reduction in the disparity of profitability between sugar
and ethanol. In relation to the mills, the challenge
is to increase productivity and to reduce costs, with
assurance of growing standards of sustainability in
all operations. For Copersucar, it is to maintain an
equitable distribution of profit margins in each link
of the chain, to engage more and more the Partner
Mills in the principles of sustainability, to consoli-
Copersucar S.A.
9
Reporting
and materiality
Reporting and materiality
Reflection of advancements in sustainability management, the Company
presents its second report, from the identification of relevant themes for
its stakeholders and with GRI application B+ level. The study of materiality
and the engagement of stakeholders were also improved.
2.1. Evolution in the
reporting process
Assumed as commitment in the 2009/2010 Sustainability Report, the second Sustainability Report of
Copersucar approaches the economic, social and environmental performance of Copersucar S.A. and the
Partner Mills in the period from April 1, 2010 to March
31, 2012 –crop years 2010/2011 and 2011/2012. Published biennially, the document is part of a continuous
improvement process, which includes the implementation of a computerized information system for collection of information among all the units involved: Copersucar, the Sugar Terminal (TAC) and the Partner
Mills. [3.1, 3.2 3.3, 3.5] For the subsequent reporting
period, the logistic terminals of São José do Rio Preto,
Ribeirão Preto and Guarujá will be included.
The document was elaborated in accordance with
Global Reporting Initiative (GRI) methodology and
follows the G3 guidelines, having passed through
the GRI Application Level Examination and reached
the B+ level. Another objective pointed out in the
previous report and completed in this cycle is the
external verification, conducted by the company
Bureau Veritas Certification (BVC). [3.5, 3.13]
In order to evolve in communication as well, the
document was developed based on a materiality
study, which resulted in a set of 17 more relevant
themes to be addressed. Grouped in eight chapters, they provide structure to the report and
were used in the selection of 65 GRI indicators,
accounted for by Copersucar / TAC (C) and the
Partner Mills (U). [3.5]
List of 48 Partner Mills
12
Aralco
Cocal II - Narandiba
Jacarezinho
Santo Antônio
Aralco – Alcoazul
Da Pedra
José Bonifácio
São Francisco
Aralco – Figueira
Decal – Rio Verde
Lins
São José da Estiva
Aralco – Generalco
Destilaria Santa Inês
Melhoramentos
São Luiz S.A.
Batatais
Ferrari
Monções
São Manoel
Buriti
Furlan – Avaré
Nossa Sra. Aparecida
Uberaba
Caçu
Furlan – Santa Bárbara
Pioneiros
Umoe Bioenergy II
Catanduva
Iacanga
Pitangueiras
Viralcool I – Pitangueiras
Cerradão
Ibirá
Santa Adélia – Jaboticabal
Viralcool II – Castilho
Clealco – Clementina
Ipê
Santa Adélia – Pereira Barreto
Zilor – Barra Grande
Clealco – Queiroz
Ipiranga – Descalvado
Santa Lúcia
Zilor – Quatá
Cocal I – Paraguaçu Paulista
Ipiranga – Mococa
Santa Maria
Zilor – São José
Adherence of the mills to the indicator monitoring
and result reporting system is voluntary and fruit
of an engagement work of Copersucar along with
its Partner Mills. In relation to the previous report,
the number of Partner Mills increased from 39 (crop
year 2010/2011) to 48 (crop year 2011/2012). Thirtyfive (35) mills, in the crop year 2010/2011, and 45
mills, in the crop year 2011/2012, took part in the
collection and consolidation of data. The mills that
did not participate during this period are preparing
for the implementation of procedures intended for
the collection and consolidation of indicators for the
forthcoming crop years.
With respect to Copersucar’s (C) indicators, they
cover the operations of the administrative office
in the city of São Paulo, and the Copersucar Sugar Terminal (TAC), in Santos (SP). The GRI profile
items are accounted for solely by Copersucar.
[3.6, 3.7, 3.8, 3.9, 3.11]
2.2. Construction of the
materiality matrix
Between October and November 2010, Copersucar
undertook its second stakeholder engagement and
materiality study process. In addition to the internal
public and the Partner Mills that were consulted for
the elaboration of the first GRI report, in 2008, in
the current edition logistics suppliers, professional
and trade associations, national and international
customers, non-governmental organizations
(NGOs), the press and financial institutions were
also involved. Altogether, face-to-face and telephone interviews with 68 people were conducted,
who also responded a materiality test by e-mail. For
the Partner mills, a panel was conducted in Ribeirão
Preto (SP). [3.5, 4.14, 4.16]
Coordinated by a specialized consulting firm, the work
was concluded with the cross-referencing of data and
Meeting of the mills’ sustainability technical group (November 2011)
Copersucar S.A.
13
Level of importance for stakeholders
Materiality matrix
17
06
07 01
08
31
02
09
03
24 16 15 10
11
30 25
14
12
13
04
41 33
19
46 42 34 2926 18
05
28 22 23 21 20
45
40
4339 35 27
32
48
49
47
38
37
36
44
50
Level of importance for the company
Relevant themes for stakeholders and Copersucar [4.17]
1. Forced labor / analogous to slavery
2. Reduction in greenhouse gas emissions
3. Child labor
4. Bribery, fraud and corruption
5. Product quality
6. Forced labor / analogous to slavery in suppliers
7. Child labor in suppliers
8. Occupational risks and accidents
9. Rational use of water
10.Corporate governance
11. Impacts of climatic changes on agriculture
12.Transparency in disclosure of results
13. Burning on sugarcane plantations
14.Code of conduct
15.Soil and water resource conservation
16.Supplier qualification
17. Conservation of permanent preservation areas (APPs) / riparian forest
14
Meeting of Copersucar road transport operators (September 2011)
creation of the company’s new materiality matrix,
which contains the most relevant themes to be managed and reported by the Company and that involve
the entire value chain. The stakeholders will be engaged every two years, as long as this engagement is
deemed necessary for materiality. For the stakeholder group composed of the Partner Mills, the engagement meetings will be held three times during the
crop year, in addition to contact routine for the execution of works in the course of the crop year. [4.16]
The results of the materiality matrix reinforces the
importance of Copersucar’s main focal points of
strategic operation: business ethics and good governance reflected on its strategic ideology and on
the daily conduct of its managers, employees and
partners, and appreciation of people and the ecosystem in the entire coverage of its operation, expressed in the strict observance of human and environmental aspects in all its practices. [3.5]
2.3. Material themes for
stakeholders [4.17]
1. Transparency in business
2. Ethics and governance
3. Product responsibility
4. Health and safety
5. Climatic changes
6. Conservation of resources and biodiversity
7. Human rights and value chain
8. Co-product management
Although it does not appear in the quadrant of
greatest relevance, co-product management is included in the materiality matrix, which is an important indicator and monitored on a routine basis in
the management of Partner Mills.
Copersucar S.A.
15
Selection of indicators from relevant material themes [4.17]
Materiality in the report
Content
GRI item or indicator
Transparency
in business
Transparency in disclosure of results
1.1, 1.2, EC1 C and EC4 C
Supplier qualification
EC6 C/U and HR3 C
Bribery, fraud and corruption
SO2 C, SO3 C and SO4 C
Corporate governance
4.1 to 4.10
Code of Conduct
Forms of management SO,
SO4 C and HR4 C
Product
responsibility
Product quality
Forms of management PR,
PR1 C to PR9 C
Health and safety
Occupational risks and accidents
LA6 U, LA7 C/U, LA8 C/U and LA9 C/U
Reduction of greenhouse gas (GHG) emissions
EN18 U
Impacts of climatic changes on agriculture
EC2 C
Burning practices
Forms of management EN, EN18 U
Soil and water resource conservation
Forms of management EN, EN8 C/U,
EN9 U and EN10 U
Rational use of water
EN8 C/U, EN9 U and EN10 U
Conservation of permanent protection areas (APPs)
and protection of the riparian forest
EN12 U and EN28 C
Forced labor / analogous to slavery
HR7 C/U
Child labor
HR6 C/U
Forced labor / analogous to slavery in suppliers
HR1 C, HR2 C/U and HR3 C
Child labor in suppliers
HRI C, HR2 C/U and HR3 C
Respect for people
LA1 C/U, LA2 C, LA3 C, LA4 C/U, LA5
C, , LA14 C, LA12 C, LA11 C/U, LA10 C/U,
LA13 C, EC5 C/U, EC3 C
Community relationship
EC8 C/U, EC9 U, SO1 U
Ethics and
governance
Climatic changes
Conservation
of resources
and biodiversity
Human rights
and value chain
Co-product management
EN2 C/U, EN22 C/U, EN30 C
Key to indicators:
Responded by Copersucar: C
Responded by Partner Mills: U
Questions, comments and suggestions regarding Sustainability Report 2010/2011 and 2011/2012
must be addressed to the Company’s Sustainability department, by e-mail sustentabilidade@
copersucar.com.br or by telephone (55 11) 2618 8251. [3.4]
16
Next, we present the number of responding mills by indicator and their representation with respect to
the total crushed cane.
Representativeness of the indicators in relation to the crushed cane (%) in Partner Mills
Indicator
Environmental
EN2
EN3
EN4
EN8
EN9
EN10
EN12
EN13
EN14
EN18
EN22
EN23
Labor
LA1
LA4
LA6
LA7
LA8
LA9
LA10
LA11
Human Resources
HR2
HR5
HR6
HR7
HR9
Social
SO1
Economic
EC5
EC6
EC8
EC9
Respondents
crop year 2010/2011
% crushed cane
Respondents
crop year 2011/2012
% crushed cane
35
34
35
33
35
35
33
32
32
35
35
33
91%
90%
91%
83%
91%
91%
88%
86%
86%
91%
91%
88%
40
39
39
39
45
36
35
35
36
43
40
45
93%
91%
91%
91%
96%
80%
72%
72%
75%
89%
91%
96%
35
35
35
*
24
32
32
25
91%
91%
91%
*
65%
86%
85%
64%
45
43
41
37
28
41
35
29
96%
89%
84%
81%
66%
86%
76%
65%
27
33
35
35
35
84%
88%
91%
91%
91%
38
38
41
41
45
78%
83%
85%
85%
96%
8
20%
8
20%
34
31
25
30
87%
83%
68%
81%
45
40
30
33
96%
87%
78%
71%
* Not monitored as GRI indicator in the crop year 2010/2011
Copersucar S.A.
17
The Company
The Company
The Company
With 48 Partner Mills, Copersucar has a growing share in the sugar and
ethanol market in Brazil and abroad. Corporate composition and structure of
operations are aligned to act efficiently in all production, distribution and
commercialization cycle stages.
3.1. Efficiency in supply,
commercialization and logistics
Incorporated in 2008, Copersucar S.A. was created
by members of the Cooperativa de Produtores de
Cana-de-Açúcar, Açúcar e Álcool do Estado de São
Paulo [Cooperative of Sugarcane, Sugar and Alcohol
Producers of the State of São Paulo], to acquire flexibility against the market, to exploit its growth potential and to invest in new commercial strategies, without losing grip of the values of cooperativism.
The major differential of this business model is its
capacity to integrate all links of the chain, from the
producer to the end customer, derived from the
partnership between the company and the Partner
Mills and from its logistic capacity.
The mills are, at the same time, suppliers, through
the Cooperative, and shareholders, represented in
the Board of Directors. Each of them maintains autonomy in the management of their business, with
sharing of experiences and best practices, and dedicates 100% of production to Copersucar, by way of
the Cooperative, through long-term contracts, which
enables the consolidation of large supply volumes.
Copersucar S.A. is responsible for the commercialization and distribution of sugar and ethanol, under competitive conditions, with gains in efficiency derived
from its logistic capacity and from the relevance of its
market position. Today, it is the largest trading firm
integrated to production in the Brazilian sugar-energy
sector, with a market share of 18% recorded in the
crop year 2010/2011, and 22% in the crop year
2011/2012, and one of the largest worldwide, with cus-
20
Loading of ship at the TAC
tomers in approximately 50 countries. Operationally,
it has a structured commercial sales department and
an efficient and intermodal logistics system.
Currently there are 48 Partner Mills, which make up 25
economic groups, whereby 11 are exclusive ethanol producing mills. In the crop years 2010/2011 and 2011/2012,
nine Mills were incorporated into the company, of which
seven are in the State of São Paulo and two in the State
of Goiás, where Copersucar did not use to operate until then. The company also operates in Minas Gerais and
Paraná – all in the Central-Southern region. Altogether,
the mills have a total crushing capacity of 115 million
metric tons of sugarcane per year, or 18% capacity of
the whole Central-Southern region. To meet the demands, the Company also acquires products from nonpartner mills, partner suppliers of Copersucar. [2.1, 2.2,
2.5, 2.6, 2.9]
The Company
3.2. Corporate structure
Limited. The latter is a 50:50 joint venture with the
Jamal Al Ghurair Group, from Dubai, with head office in the British Virgin Islands, and dedicated to
ocean freight.
With its head office in the city of São Paulo, the
Company has as subsidiaries Cia. Auxiliar de
Armazéns Gerais, responsible for the Copersucar
Sugar Terminal at the Port of Santos, Sugar Express Transportes S.A. , which manages road
freights, Copa Shipping do Brasil Ltda. and Copersucar Armazéns Gerais S.A. Overseas, its subsidiaries are Copersucar International N.V. (Curaçao),
Copersucar Trading A.V.V. (Aruba), Copersucar Europe B.V. (Holland) and Copa Shipping Company
The Company is also a shareholder of Logum, the
company responsible for the construction of the
ethanol pipeline that will integrate the biofuel producing hubs with consumer and distribution centers, and of Uniduto Logística S.A., which is also a
partner of Logum. The company even has exclusive
representatives in the United States. . [2.3, 2.4]
Corporate structure
Copersucar
Armazéns Gerais S.A.
99.99
copersucar s.a.
100
Diverse
(Sugar and Ethanol
mills and others)
100
99.99
99.99
Copersucar
International N.V.
(Curaçao)
Sugar Express
Transportes S.A.
Cia. Auxiliar de
Armazéns Gerais
100
20
32.62
Copersucar
Trading A.V.V.
(Aruba)
Logum
Logística S.A.
Uniduto
Logística S.A.
100
50
Copersucar
Europe B.V.
(The Netherlands)
Copa Shipping
Company Limited
(British Virgin Islands)
June 2012
Copersucar S.A.
21
The Company
3.3. Operational structure
Copersucar has an extensive logistics system,
with road, railway and maritime operations, as
strategy to market its products and deliver them
efficiently to its customers.
The logistic system consists in multimodal terminals to receive, store and dispatch sugar to
producing hubs; and long-term contracts with
railway, road and maritime transport operators.
In the crop year 2011/2012, this logistic structure
received investments of BRL 300 million, particularly for the commencement of expansion
works of the Copersucar Sugar Terminal (TAC)
at the Port of Santos and the share in Logum’s
capital.
The capacity and speed in operations of the multimodal terminals also increased. The São José do Rio
Preto and Ribeirão Preto terminals were modernized
and expanded, reaching a throughput capacity of 2.3
million metric tons of sugar per year, with reception
by freight road transport and large-scale shipment
by freight rail transport up to the Port of Santos. In
Guarujá, Copersucar started to operate its Container
Terminal (TEC), with capacity to ship 500 thousand
metric tons of bagged sugar, which extends flexibility in service to diverse customers of the international market (read more in Logistic efficiency). [2.9]
Integrated Logistics System – Railroad Network
São José do Rio Preto
Multimodal Terminal
FCA – Meter gauge
ALL – Broad gauge
ALL – Meter gauge
Mixed gauge
Ribeirão Preto
Multimodal Terminal
São Paulo
Head Office
Sugar Terminal
Santos
22
The Company
Multimodal terminal in Ribeirão Preto
General information
Company name Copersucar S.A.
Products raw sugar, white sugar, anhydrous ethanol and hydrated ethanol
Foundation 2008
São Paulo Office
Rotterdam Office (The Netherlands)
Structure Copersucar Sugar Terminal/TAC (Santos)
Container Stuffing Terminal /TEC (Guarujá)
Multimodal terminals in Ribeirão Preto and São José do Rio Preto
503 (crop year 2010/2011)
Direct employees
517 (crop year 2011/2012)
Company type Private corporation [2.6, 2.8]
Copersucar S.A.
23
The Company
Revenues (by crop year)
Net Equity (by crop year) [2.8]
09/10
BRL 3,763.6 m
09/10
BRL 88.9 m
10/11
BRL 8,275.3 m
10/11
BRL 365.5 m
11/12
BRL 11,226.8 m
11/12
BRL 205.6 m
Information about products and services relative to operational segments [2.7]
Norway
Finland
Sweden
Russia
Holland
Ireland
Poland
England
Czech Republic
Belgium
Germany
Romania
Bosnia Georgia
Italy
Canada
United States
China
Azerbaijan
Japan
South Korea
Israel
Morocco
Algeria
Egypt
Mexico
Saudi Arabia
Jamaica
Yemen
Trinidad and Tobago
Venezuela
Ghana
Pakistan
Bangladesh
Arab Emirates
Hong Kong
India
Thailand
Nigeria
Malaysia
Colombia
Indonesia
Peru
Angola
São Paulo
Chile
Uruguay
South Africa
Argentina
DESTINATIONS
24
UNITS
Sugar
Copersucar Head Office
in São Paulo
Ethanol
Copersucar Europe B.V.,
Rotterdam, The Netherlands
Copersucar Multimodal Terminal I - Ribeirão Preto, São Paulo
Hong Kong Office
Copersucar Multimodal Terminal II - São José do Rio Preto, São Paulo
Copersucar Sugar Terminal – TAC, Santos, São Paulo
Container Stuffing Terminal - TEC, Guarujá, São Paulo
The Company
definition of Copersucar’s strategic operation focus.
Thus, the decision was taken to shift from the industrialization and retail operations of coffee, sugar and ethanol for domestic use and to focus on the
large-scale supply of sugar and ethanol, with the
integration of logistics and commercialization dedicated to corporate customers. In view of the perspectives of business growth, Copersucar S.A. was
incorporated in 2008.
Sugar warehouse at the TAC
3.4. Evolution of business
model
Since the Cooperative’s foundation in 1959, the history of Copersucar is marked by a pioneering role,
with significant participation in the sector’s reorganization processes, opening of new markets, development of technologies for sugarcane, sugar and
ethanol and professionalization of the segment’s
professional and sector associations.
In addition to the traditional sugar and ethanol
wholesale market, the Cooperative also operated in
the retail segment through the Companhia União.
It was even one of the key players of the National
Alcohol Program (Pró-Álcool) launched by the Brazilian government in the 1970s to drive the replacement of petroleum-based fuels.
The evolution of the business model and modernization process of the Cooperative began with the
The new model, which previously was equivalent to
a shared commercialization and logistics service
center, became concentrated on complementary
investment in the supply chain, with gains of scale
and specialization in trading. The strategic objective
of cost rationalization also incorporated as scope,
global leadership in sugar and ethanol, starting with
the elimination of the restricting factors for investment and growth that previously characterized the
cooperative structure – a change that then started
to rely on the recognition of assets invested by the
shareholders themselves.
In parallel, especially during the last three years,
Copersucar has concentrated on strengthening
its governance, through adoption of best market
practices, clear definition of the roles of the
shareholders and executives and complete management professionalization (read more in Ethics
and governance).
In the company structure, the Cooperative exercises the role of main supplier of Copersucar
S.A., operating under stable rules and market
conditions, while the Producing Mills are company shareholders.
In 2011, while Copersucar S.A. was refining its governance structure along the lines of BM&FBovespa’s
New Market, the corporate name of the Cooperative
ceased to include the brand, Copersucar, to reinforce clarity and separation of the new roles.
Copersucar S.A.
25
The Company
3.5. Business strategy
The Copersucar business model is considered as
unique and difficult to copy due to the fact that it
combines the large-scale supply of its Partner Mills
with the agility of a company focused on value chain
management in all its logistics and commercial links.
The captive supply from the 48 Partner Mills is complemented by origination, with production acquired on
non-exclusive terms from 50 non-partner mills, thus
reinforcing the model, with propriety and management
of the productive processes controlled by companies
with vast tradition and knowledge of the activities.
Copersucar is responsible for taking care of – as
profit levers – commercial and risk management,
excellence in logistic operations and full service to
national and foreign customers.
One of the major competitive differentials in this
model is to make feasible the consolidation of supply, with availability of a larger volume of sugar and
ethanol to the market, in opposition to the consolidation of production assets.
Another priority operational focus is logistic efficiency, enabling Copersucar to operate in all links
of the chain, endowing it gain of global scale and
direct access to customers worldwide.
For the Partner Mills, one of the advantages of the
Copersucar system is stability in commercial relation with purchasing guarantee of 100% of production at market conditions. The supply contract is
long-term, with clear, transparent, stable and auditable rules.
The company, in turn, manages commercialization
and inventory risks and bears the challenge of maintaining a profit margin above the market level,
through efficient financial and operational management and aggregation of value to the product.
The Partner Mills, also company shareholders, receive dividends from the business, which increases
investment in the organic growth of production and
makes feasible the model’s virtuous cycle.
Protected by transparent governance practices, in
the best standards of the Instituto Brasileiro de Governança Corporativa [Brazilian Institute of Corporate
Governance] and BM&FBovespa’s New Market, this
business model enables greater proximity between
shareholders, suppliers and managers. This results
in agility in the understanding and perception of market trends, greater synergy in the search for common
solutions and in knowledge sharing, aside from favoring the engagement of Partner Mills on the principles
of sustainability and the promotion of good socioenvironmental practices.
Container Stuffing Terminal in Guarujá
26
The Company
A new governance - Business Model
Captive Supply
Copersucar
Visibility of
Global Commercial
Intelligence and Chain
Commercialization
Management
Lands, Labor,
Process and
Production
Management
Origination
Logistics
Marketing and
Distribution
Customer
Risk Management
3.6. Transparency in
business
Sector context
Between April 2011 and March 2012, the Brazilian
sugar-energy sector suffered a significant crop failure, caused especially by the ageing of the sugar
plantation, which has been monitored since 2008,
and due to occurrence of climatic phenomena, such
as heavy droughts and frosts. In the crop year
2011/2012, 493 million metric tons of cane were
crushed in the country, while installed capacity permitted the processing of around 650 million.
According to data from the Companhia Nacional de
Abastecimento [National Supply Company] (Conab),
average productivity dropped from 77.4 metric tons
of cane per hectare in the crop year 2010/2011 to
68.7 metric tons per hectare in the following one.
Even so, Brazil has continued to be the largest sugarcane producer in the world and, consequently, the
largest sugar producer and second largest ethanol
producer, after the United States. The estimated
productivity value for the crop year 2012/2013 is
maintained according to the crop year 2011/2012, in
accordance with the forecasts made by the União
da Indústria de Cana-de-Açúcar (UNICA) [Brazilian
Sugarcane Industry Association] in April 2012.
Also the largest sugar exporter worldwide, Brazil accounted for 78.5% of trading operations in the open
market, in the crop year 2011/2012. Market protectionism practiced by Europe and the United States is
still considered a barrier to better performance.
In the ethanol market, production is on the increase
worldwide, due to oil price oscillations and due to
growing demand for fuels with less environmental
impact. From 2004 to 2010, volume grew by over
100%, from 40.5 billion liters to 87.1 billion liters. In
Brazil, there was a significant drop in the last two
crop years, with expectation of growth by 3.2% in
crushing for the 2012/2013 cycle (UNICA, April, 2012).
Copersucar S.A.
27
The Company
Sugar production crop year 2011/2012 (millions of metric tons)
mn t rv (*)
%
n Brazil
38,1
22.0
n India
28,8
16.7
n European Union
17,5
10.1
n Thailand
10,4
6.0
n Mexico
5,2
3.0
n Australia
3,9
2.3
n Guatemala
2,4
1.4
n Colombia
2,3
1.3
1,4
0.8
n Others
62,9
36.4
World
172,9
100.0
n Cuba
Sources: MAPA and UNICA (Brazil); USDA (other countries)
(*) rv: Raw Value: equivalent to 1.087 metric tons of raw sugar
Sugar exports 2011/2012 - Market share
Brazil
44.1%
Thailand
15.2%
Others
20.4%
Cuba
1.1%
Australia
4.8%
Colombia
1.4%
India
4.4%
Mexico
1.5%
Guatemala
2.8%
European Union
4.2%
Sources: USDA, SECEX and Copersucar estimates
28
The Company
Ethanol production crop year 2011/2012 (billions of liters)
n Brazil
bn l
%
22,9
21.6%
n United States
54,9
51.8%
n Others
28,2
26.6%
World Total
106
100%
Sources: USDA, UNICA, Copersucar Estimates
Ethanol exports 2011 - Market share
Copersucar
6.9%
Others
28.9%
Brazil
15.7%
United States
48.5%
Sources: SECEX and Copersucar Estimates
Copersucar S.A.
29
The Company
Consolidation of supply
With a unique business model that integrates
commercialization and logistics with production,
the company continues to grow in the market.
SUGAR
Copersucar is the leader in sugar and ethanol sales in
Brazil and one of the largest exporters worldwide. In
the crop year 2011/2012, the Partner Mills produced
63.5% of the commercialized sugar and 90.7% of the
commercialized ethanol; the remainder was supplied
by 50 non-partner mills. In the crop year 2011/2012,
Copersucar commercialized a total of 6.96 million
metric tons of sugar, a 12.2% increase in volume over
the previous year. Sugar exports reached a total of
5.12 million metric tons, an 8.5% volume increase over
the previous crop year. The main customer markets
were countries from the Middle East and Asia. Sales
to Latin America, including Brazil, reached a total of
1.83 million metric tons. This represented an increase
of 19%, due to the expansion and promotion of loyalty of the customer base.
ETHANOL
In spite of the focus on internal supply, Copersucar
increased its world market share, accounting for
35% of Brazilian exports in the last two crop years.
For example, it supplies almost all the ethanol consumed in Japan destined to ETBE production, an
ethanol-based additive with isobutylene for blending with gasoline.
Of the 3.7 billion liters commercialized in the crop
year 2011/2012, 3 billion met the Brazilian demand
while 0.7 billion liters were exported. With respect
to the type of ethanol, 53% was hydrated ethanol,
which can be used in flex fuel vehicles, and the
remaining 47% was anhydrous ethanol, blended
with gasoline.
Economic performance [EC1 C]
Copersucar had a total operating income of
BRL 8.35 billion in the crop year 2010/2011, of
which BRL 4.4 billion came from sugar sales,
BRL 3.75 billion from the ethanol business,
Sugarcane crushing (millions of metric tons)
n Center-South (1)
n Copersucar
n Partner Mills
n Non-partner Mills
85.5
2009/10
30
493.2
556.9
541.9
74.0
11.5
96.6
2010/11
82.2
14.4
109.3
2011/12
84.8
24.5
1
Source: Unica
The Company
Sugar production (millions of metric tons)
n Center-South (1)
n Copersucar
n Partner Mills
n Non-partner Mills
31.3
33.5
28.6
2.4
1.3
3.7
4.4
1.7
6.1
2009/10
2010/11
4.9
2.7
7.6
2011/12
1
Source: Unica
Ethanol production (billions of liters)
n Center-South (1)
n Copersucar
23.7
25.4
3.4
–
3.4
20.5
4.1
0.2
4.3
2009/10
2010/11
3,8
0.4
4.2
2011/12
Sugar commercialization – Copersucar
(millions of metric tons) [2.8]
1
Ethanol commercialization - Copersucar
(billions of liters) [2.8]
3.7
3.6
3.3
2010/11
6.2
n Internal market
3.0
1.8
1.5
0.6
2009/10
5.2
Source: Unica
5.1
4.7
1.5
n Partner Mills
n Non-partner Mills
2011/12
6.9
n External market
2009/10
3.9
0.6
2010/11
4.2
n Internal market
0.7
2011/12
3.7
n External market
Copersucar S.A.
31
The Company
and BRL 0.1 billion generated by logistics services and other operations.
At the end of the crop year 2010/2011, the company’s
net equity was BRL 365.5 million, and BRL 315.7 million were distributed among the shareholders.
Now in the following period, the company’s operating
income was BRL 11.2 billion, whereby BRL 6.5 billion
were from sugar sales, BRL 4.6 billion from ethanol,
and BRL 0.1 billion from logistics services and other
operations.
The registered net equity was BRL 205.6 million,
and BRL 100.0 million were distributed among the
shareholders in the form of dividends. The Company ended the crop year 2011/2012 with gross debt
of BRL 2.2 billion, cash equivalents of BRL 374.0
million, resulting in net debt of BRL 1.86 billion. Copersucar is a private corporation whose shares do
not have market value. [2.8]
From the premise of prioritizing long-term contracts, growth in sales was obtained by virtue
of the integration of new Partner Mills in the
crop year 2010/2011, and volume increase of
sugar and ethanol commercialized by Copersucar and proceeding from non-partner mills.
In compliance with the best accounting practices, Copersucar publishes Statements of Added Value as an integral part of its Financial Balance Sheet. Based on macroeconomic concepts,
these statements seek to show the company’s
portion of contribution in the formation of the
Gross Domestic Product through determination
of the respective values added by the Company
and those received from other entities, and the
distribution of these amounts among its employees, governmental spheres, asset owners,
creditors through loans, financings and debt
deeds, shareholders and other payments that
may represent the transfer of wealth to third
parties. These amounts represent the wealth
created by the Company in general, measured
by revenues from sales of goods and provided
services, except the materials acquired from
third parties, including also the added value
produced by third parties and transferred to the
entity. [EC1 C]
Generated and distributed direct economic value (thousands of Reais) [EC1 C]
2011
Statement of Added value
BRL
%
BRL
%
Shareholders
315,703
27.57
100,000
6.38
Employees (salaries and benefits)
79,386
6.93
78,544
5.01
577,356
50.42
486,162
31.01
Retained earnings
39,783
3.47
2,552
0.16
Interest and rents (operating costs)
132,974
11.61
900,466
57.44
0
0
0
0
1,145,202
100.00
1,567,724
100.00
Government
Community investments
Total
Generated Direct Economic Value (generated economic
value less distributed economic value)
32
2012
2011
2012
290,356
125,822
The Company
Bagged sugar warehouse at the TAC
Market perspectives
Global sugar consumption is increasing by three
million metric tons every year – an average
growth rate of 2% –, in accordance with data
from the Food Administration Organization (FAO)
of the United Nations Organization. Sugar is a
low-cost source of calories and its consumption,
besides that it does not suffer greatly with economic oscillations, represents a large potential
market.
At Copersucar, this trend is confirmed by business growth in Asian and African countries. Reductions in subsidies and barriers practiced by
the developed nations, like the United States and
European countries, have also been verified,
which is positive for the product’s entire international trading.
The external biofuel market also presents good perspectives, since a new kind of international trade is
developing, no longer based on price but rather on
advanced environmental features that sugarcane
ethanol presents. For this reason, the market continues to be driven by government greenhouse gas
(GHG) emission reduction policies.
In the United States, the Renewable Fuel Standard
(RFS2), a law that defines the use of biofuels, was
regulated. It establishes a national minimum consumption goal of 57 billion liters of biofuel in 2012
- including biodiesel, sugarcane ethanol, corn ethanol and cellulosic ethanol - and expects gradual
increase up to 136 billion liters by 2022. Now, in the
European Union, a directive establishes that in all
countries of the economic block, until 2020, at least
10% of the total fuels consumed must be derived
from renewable sources.
Copersucar S.A.
33
The Company
Financial management
Copersucar’s financial management observes principles of transparency and austerity. This rigour
extends to the selection process of incoming mills,
which are assessed with respect to the business’
financial management and level of indebtedness.
The risk management policy, approved by the
Board of Directors, directs Copersucar’s business
areas to act within previously defined parameters
for operations that can cause major financial impact on the Company. The risks defined as priorities include variation of commodity prices, exchange rates, interest rates, credit and liquidity.
The Risk Management department reports directly to the Chief Executive Officer and is part of the
company’s corporate governance structure.
In practice, risk management occurs from the
definition of the company’s appetite and aversion
to risk, as determined by the Board of Directors.
Based on these initial orientations, the Audit and
Risk Management Committee and the Risk Management department assess premises like volumes estimated for the crop year, expectations
of prices and volatilities and any other factor that
may represent financial risks. These financial
risks are calculated and presented by the Chief
Executive Officer to the Board of Directors for
approval. The Executive Board establishes, solely
after these deliberations, the budget based on the
risks and business plans that the departments
delineated as goal.
The objective of risk management is to ensure that
the Company takes advantage of market opportunities in its commercial and financial operations
within previously established parameters, in order
to guard against its risks, to monitor procedures
and to act opportunely in the event of occasional
non-compliances or needs for adjustment of limits.
34
During the last two crop years, the Company,
including Copersucar Sugar Terminal (TAC), did
not receive tax incentive, subsidy, subvention
or any other kind of financial aid from the government. In relation with stimulated social investments, Copersucar uses legal instruments
for allotment of resources proceeding from the
ICMS tax provided for by the law of the State of
São Paulo (PROAC/PIE). In this reporting period, BRL 10.9 million were alloted. Furthermore,
during this period, Copersucar was not subjected to any legal actions for unloyal competition
or trust and monopolistic practices, and was not
fined or suffered sanctions of significant values
for non-compliance with laws and regulations.
[SO7 C, SO8 C]
Commercialization strategy
The Company divides its sugar customers into two
major categories: Latin America, with approximately 300 customers (including Brazil), with a
focus on the food industries, and Exportation,
with around 25 customers, including refineries of
various countries that purchase bulk sugar. [2.7]
Regarding ethanol, customers are distributed between the internal market, with approximately 150
customers, and the external market, with about 40
customers and exports especially to the United
States, Japan and European countries. [2.7]
Copersucar’s marketing campaigns and actions are
addressed to industrial customers and are based on
standards and laws of the Brazilian Advertising SelfRegulation Council (Conar) and on the premise of
transparency and integrity of information pinpointed
in the Code of Business Conduct. The Code of Conduct is reviewed whenever there is need for its adaptation in view of alterations in Company structure,
areas of operation and corporate governance, among
other aspects. No Copersucar product is prohibited
The Company
Customer Meeting 2010
in any markets. In the crop years 2010/2011 and
2011/2012, the Company did not register cases of
non-conformity in relation to marketing actions.
[PR6 C, PR7 C]
The marketing strategy’s main guideline is to invest
in closer ties with different types of customers,
through periodic visits and participation in the main
national and international events of the sector, such
as the Sugar & Ethanol Dinner, which gathers together every two years representatives from the
various links of the chain.
3.7. Logistic efficiency
The integration and use of different modes of
transport ensures a differentiated logistics system,
which adds competitiveness to the business.
Every two years, the Company holds a Customer
Meeting, with about 100 customers, where it presents its operations in different areas. The central
theme in the 2010 edition was sustainability, where
lectures by specialists were held.
Copersucar’s operation as an integrator of the
entire business chain of the sugar-energy sector,
from the mills to the end customers, with no intermediaries and with operational excellence,
transforms the logistics segment into a strategic
pillar. Through it, Copersucar is able to transport
100% of the Partner Mills’ production and still
gain scale by acquiring products from non-partner mills. The extensive structure is based on an
efficient intermodal system, which allows access
to customers worldwide, with assurance of fast
and quality delivery.
Periodically, the commercial department shares with
customers the analyses of scenarios carried out by
the company’s market intelligence department.
The system is formed mainly by the subsidiary Sugar Express – responsible for buy and sell operations
for freight road transport –, railroad operators and
Copersucar S.A.
35
The Company
Ethanol transport by railway
36
Copersucar Sugar Terminal (TAC) at the Port of
Santos (São Paulo). In June 2011, the Container
Stuffing Terminal (TEC) was inaugurated in Guarujá
(São Paulo). The bonded dockside terminal makes
more efficient the transport of bagged white sugar
(stored in containers) and improves customer service, especially to smaller firms that require reduced
product quantities.
With respect to storage capacity, the pool of warehouses and tanks of the Partner Mills provide the
company with the largest storage capacity in the
sector in Brazil, currently estimated at 2.5 million
metric tons of sugar and 3 billion liters of ethanol,
equivalent to over 18 million barrels. Storage capacity is an important differential in the commodities market.
Another highlight was the improvement of control
in ocean transport, with the creation of Copa Shipping Company Limited, in November 2010, a partnership with the Jamal Al Ghurair Group, of the
United Arab Emirates. The objective is to increase
Copersucar’s competitiveness in the world market,
through increase of planning capacity, reduction
of costs and greater quality and safety in the delivery of products to the final destination. The new
company transported, on its first year of operation
(crop year 2011/2012), around 2.7 million metric
tons of sugar.
Road transport
For road transport, the major generated impacts
are greenhouse gas (GHG) emissions and interferences in urban mobility. The monitoring of distances traveled is part of the control of Copersucar’s
Logistics department, however without direct measurement of the GHG emissions. Considering the
average distance for the transport of products destined to exportation, from the mills to the ports of
Santos and Paranaguá, emissions are estimated at
37,000 tCO2e. [EN29 C]
The Company
Railway transport
To transport sugar by railway to the ports of Santos (São Paulo) and Paranaguá (Paraná), the Company maintains long-term contracts with the companies Ferrovia Centro-Atlântica (FCA) in Ribeirão
Preto, and América Latina Logística (ALL) in São
José do Rio Preto, which operate the two main
railroads of the State of São Paulo. The contracts
are long-term, valid until the end of the years of
concession of the aforementioned railways (between 2026 and 2028). The company also plans
heavy investments destined to the increase of efficiency at the multimodal terminals in the countryside, which will contribute to increase share of
the railway transport .
Railway transport presents the cheapest and
most efficient transport alternative, besides reducing emission of polluting gases, improving
urban mobility and decreasing the incidence of
accidents on the highways. Given the same distance and quantity of cargo, diesel consumption
is 3.2 times lesser than in road transport. The
volume of sugar transported by railways up to
the ports of Santos and Paranaguá meant a reduction of over 70 thousand truck journeys in
the last two crop years. The forecast is for 60%
of the total sugar destined for exportation to arrive at the Santos terminal by railroad transport
by 2015. No methodology has been defined to
specify which environmental impacts are most
significant.
During the reporting period, it was estimated that
the use of railway transport prevented the emission of 7,380 tCO2e, considering the hypothesis
that the same distance was traveled by road
transport. [EN29 C]
Participation in Logum
Copersucar started to be part of Logum Logística
S.A., responsible for the construction of a multimodal logistic system that will use pipelines and
waterways in the transport and store of liquids,
especially, ethanol. The pipeline, which is under
construction, has an estimated extension of 1,300
kilometers and planned capacity to transport over
20 million cubic meters of ethanol per year. It will
Estimated emissions by type of transport for sugar and ethanol exports in the crop
years 2010/2011 and 2011/2012
Type of transport
Road
Railway
Total
Total km covered (km)
Total emissions (tCO2e)
62,666,906
37,501
17,939,357
3,355
80,606,263
40,855
Scope: Cargoes transported from Partner and non-partner mills to the TAC in Santos or to the Port of Paranaguá, CIF (Cost, Insurance and Freight)
Reference: GHG Protocol Mobile Guide (2005)
Diesel emissions: 2.7458 kgCO2 /liter diesel
Average fuel consumption: 33.61 liters/100 km
Copersucar S.A.
37
The Company
cross 45 cities of the states of Goiás, Mato Grosso
do Sul, Minas Gerais and São Paulo. The system
will transport ethanol produced in the CentralSouthern region to the city of Paulínia at the countryside of São Paulo, where there are storage facilities, and from there to the main domestic
consumer markets and ports in the states of São
Paulo and Rio de Janeiro.
to par with those in other countries. The system will
be available for use by third-parties through service
contracts. The first stage, linking Ribeirão Preto
with Paulínia, should be inaugurated in the crop
year 2012/2013, and the system should be fully operational by 2020.
In terms of environmental impacts, it is calculated that the operation will substitute 1.2 million
truck journeys per year, preventing approximately 350 thousand metric tons of CO 2e emissions.
Highway vehicle traffic will also be benefited, with
a reduction of around 415 million kilometers in
road journeys per year, improving traffic in the
city of São Paulo and access routes to the ports.
Copersucar has a 20% share in Logum, in conjunction with Raízen (20%), Petrobras (20%), Odebrecht (20%), Camargo Corrêa (10%) and the company Uniduto (10%), which consists of other ethanol
producers, including Copersucar. The initiative is
aimed at bringing the pipeline system in Brazil up
Logum: a groundbreaking project for the industry
Jataí
GO
Oct/15
Senador
Canedo
Tank Terminals – PMCC
Quirinópolis
New Pipeline – PMCC
Existing Pipeline – BR
Itumbiara
Aparecida
do Taboado
Waterway
Sept/14
MS
Uberaba
Mar/14
Aug/13
Ribeirão Preto
Araçatuba
Presidente
Epitácio
MG
Jun/15
Sept/13
REDUC
REPLAN
Jan/15
Anhembi
Guararema
Sept/11
Barueri
PR
Sept/11
Mar/13
Guarulhos
Jan/13
Suzano
REVAP
Ilha D’Água
Dec/15
Caraguatatuba
Mooring buoy
38
RJ
The Company
Investments by 2015
Copersucar calculates that it will invest around BRL 2 billion in logistics projects by 2015, including
the Logum multimodal system. In addition to the pipeline, there will be investments in the expansion
of the Copersucar Sugar Terminal (TAC) and in the construction of an ethanol terminal in Paulínia.
The investments are aligned with Copersucar's strategy of increasing the share of the logistics
segment's in total Company net revenues. With the growth in structural capacity, operating costs
will be lower, and in some modals supply will increase due to the increased offer of services to
third parties.
The licenses for environmental impact studies for
the project have already been obtained. Part of
the pipeline is already in operation and is used by
the Petrobras subsidiary Transpetro to transport
petroleum and derivatives, thus reducing environmental impacts.
Ethanol pipeline estimated emissions reduction
Emissions avoided (tCO2/year)
345,299
Kilometers avoided (km/year)
414,992.340
Truck journeys avoided /year
1,228,936
Diesel emission factor: 2,745 (kgCO2/liter of diesel)
Reference: GHG Protocol - Mobile Guide (2005)
Green logistics
The Green Logistics program, one of the commitments assumed in the previous Sustainability Report, was implemented during the crop year
2010/2011. Aimed at road transport suppliers, a strategic stakeholder for the business, the initiative
involves 26 companies which account for 80% of
the sugar and ethanol transported by road.
The program aims to share best practices and to
engage partners in growing market socio-envi-
ronmental demands. In the first phase, transport
operators were invited to participate in a sustainability workshop held in October 2010. Copersucar presented its vision of the benefits of
change, and the transport companies conducted
a self-assessment on environmental, social and
labor issues. The results generated a ranking
that was afterwards shared among all. In the 2011
workshop, a transportation specialist lectured
on the impacts of road transport from the standpoint of sustainability.
In 2012, Copersucar implanted a program to monitor three indicators: drivers’ qualification and
training, highway accident rates, and pollutant gas
emissions. Participants reported their results by
web on a monthly basis for six months. Adhrence
was 92% of the partners, of which, 62% only
transport sugar, 17% carry only ethanol, and 21%
work with both products. New works related to
sustainability will be developed in each cycle along
with the partners.
The average number of hours of training in the
driver training indicator was 19 hours, with a total
of 73,087 hours of training for an average of
1,080 drivers. According to Instituto do Desenvolvimento do Transporte [Institute for Transport
Development] data, in 2007 the minimum training
load per driver was 11 hours, and the most common load was 44 hours.
Copersucar S.A.
39
The Company
Loading of sugar at the TAC
Under the accident indicator there were a total of
116 cases, 93 of which referred to contracted drivers and 23 to subcontracted drivers. Of the total,
93% did not cause leave of the drivers involved.
Considering the number of accidents in relation
to the total number of drivers, 3% of the drivers
were involved in these incidents.
With respect to Emissions management indicator, the transport companies described their
best practices, including fleet renewal and main-
40
tenance. Drivers received training in fuel economy (speed control, braking, increase of vehicle
performance). All the transport companies carry out periodic emission tests in accordance
with the law. Some of them also participate in
the Depollute Program launched in 2007 by the
National Transport Confederation (CNT) in partnership with Sest/Senat (Transport Social Service and National Transport Learning Service)
and federations, unions and associations of
transport companies. The principal objective of
The Company
the program is to engage companies and selfemployed drivers in the promotion of sustainable practices.
The training is focused on minimizing physical
fatigue for drivers, reducing fuel consumption
and conserving equipment. Another initiative is
the fleet’s preventive mechanical maintenance
system and the predictive replacement of air filters, fuel and lubricants, done in all trucks, enabling the identification of possible mechanical
problems and preventing unnecessary losses and
stoppages.
Some transport operators carry out annually
opacity tests to identify and correct possible
problems in their vehicles and have a daily checklist which includes verifying excessive emission.
Some of the transport operators also promote
engagement programs and monthly monitoring
of diesel oil consumption and consequently of gas
emissions, stimulating their reduction.
Port efficiency
The company fulfills its export contracts, which
comply with strict standards of quality and efficiency, through the Copersucar Sugar Terminal
(TAC) at the Port of Santos. Inaugurated in 1998,
today TAC is one of the most modern sugar shipping terminals in the world, frequently visited by
professionals from the most important sugar producing nations worldwide, such as Thailand and
Australia.
In the crop year 2011/2012, the terminal’s shipping
capacity was approximately 5.5 million metric tons
of sugar, 5 million of which was bulk (raw) sugar and
the rest, bagged white sugar. The terminal can ship
40 thousand metric tons of bulk sugar per day and
five thousand metric tons of bagged sugar (between
80 thousand and 100 thousand bags).
An expansion project was initiated in 2011 to improve the terminal’s infrastructure and double
shipping capacity to 10 million metric tons a year
in order to meet growing international demand.
It will cost BRL 200 million and will be completed
by 2015. The company also renewed its contract
of concession, whose conclusion moved from
2016 to 2036.
Supplier management
The most strategic suppliers with which Copersucar maintains close relations are the 48 Partner Mills, whose integration with the Company is
governed by specific contracts. The 50 non-partner mills that supply the remainder of the commercialized sugar and ethanol are of equal importance, as are the logistics suppliers, with
whom the Company has differentiated relationship policies.
Transactions involving the acquisition of general
materials and services are managed by the SAP
system, which controls inventories, invoices, orders and payments. To become a supplier entails
a process whereby each company must deliver a
formal work proposal to the Copersucar procurement department. The assessment and selection
process is based on quality, delivery times, price,
customer portfolio, certifications, experience and
management methodology. The Company also
considers factors which add value, such as trainings offered to users.
Contracts signed with suppliers are subject to Copersucar’s general contracting conditions, which
cover issues such as the environment and labor
relations. When the need is identified, Copersucar
holds face-to-face meetings and audits.
In the crop year 2010/2011, 31 of the Partner
Mills also applied criteria related to quality, de-
Copersucar S.A.
41
The Company
livery times and payment terms in the selection
of their own suppliers. A number of them assess
socio-environmental questions and apply questionnaires to would-be suppliers. Of these, 40%
favor the hiring of local suppliers for agricultural activities and for purchase of services and
equipment, and 16% favor regional suppliers, as
long as they meet established requirements. In
the crop year 2011/2012, the percentage of Partner Mills that have preferential practices to local
suppliers went up to 47% of the total. Only seven Partner Mills disclosed their spending on local suppliers. Four dedicate 80% of their budget
to procurement processes with local suppliers,
two have a rate of 70% and one spends 40%.
[EC6 U]
3.8. Ethics and governance
Sector context
According to the IBGC (the Portuguese acronym for
the Brazilian Institute for Corporate Governance),
governance is the system by which organizations
are managed, monitored and motivated. Governance involves the relations between the organization’s owners, board of directors, executive management and other control entities. Therefore, formal
processes are important to ensure alignment between the different parties, quick decision making,
optimization of resources and the long-term health
of the business, preventing the abuse of power, strategic errors and fraud.
At the São Luiz S.A. mill, local contracting is already formalized and the unit’s purchasing department has instructions to favor suppliers from the
region, taking into account the best cost-benefit
for the mill. This policy covers all types of service
providers. For those supplying critical inputs, São
Luiz analyzes the supplier’s quality system. Companies may only supply the mill after they have
been approved.
In spite of the lack of regulation in this area, concern with governance represents a competitive differential for companies.
Zilor, which has mills in Quatá, Macatuba and Lençóis Paulista (São Paulo), also has an advanced
supply chain management system based on a
Socio-Environmental Conduct Agreement signed
with agricultural partners and cane suppliers. The
agreement establishes 97 criteria that must be
followed, related to Occupational Health and Safety, Labor Relations, Human Rights and Environmental Preservation. Partners are also submitted
to periodic internal and external audits and with
no prior notice.
Corporate governance at Copersucar S.A. was structured based on best practices recommended by the
IBGC and is also aligned with rules of BM&FBovespa’s
New Market, a capital market segment dedicated to
trading shares issued by companies that voluntarily
adopt corporate governance practices beyond those
required by law. Copersucar abides by these rules, even
though it did not complete its Initial Public Offering.
Advancements in management
Independent board members and new
committees contribute to the evolution of
governance in the Company.
In the model in force until 2011, Produpar, the holding company constituted by Partner Mills, was the
Company’s majority shareholder.
During the preparation for the Initial Public Offering (IPO) in the crop year 2010/2011, the legal
42
The Company
Members of Partner Mills’ sustainability technical group
model was reviewed with the support of a specialized external consulting firm. Groups of
shareholders and Company executives were consulted to map the status of governance and draft
new parameters.
The Board of Directors is responsible for defining
large business proposals as well as establishing
parameters for the expected results, through the
strategic guidance, homologation of guidelines and
monitoring of strategies, operations and results.
With the corporate restructuring from June 2011,
Produpar no longer exercised the role of controller and its shareholders became direct partners
in Copersucar S.A., holding a controlling stake in
the Company. The highest governance body is
the Shareholders’ General Meeting, responsible
for high-impact decisions determined by legislation and corporate bylaws, such as the election
of Board Members, who represent the shareholders’ interests and provide direction to the Company’s Executive Board. [2.9, 4.3]
Previously composed of six members, the size of
the Board also had its composition reviewed and
currently is formed by 11 board members: the
Chairman (a career executive in the Company),
eight representatives of the Partner Mill groups
and two independent members. The participation
of external board members, who also have voting
rights, has led to effective gains in management,
resulting in more balanced and objective decision
making and new, more varied viewpoints and experience. [4.1, 4.2, 4.3]
Copersucar S.A.
43
The Company
The Board is also responsible for electing the Executive Board, the management support committees and the Consulting Council.
The Board members are not remunerated, with
the exception of the two independent members
contracted from the market and the Chairman,
whose remuneration is aligned with Company’s
Human Resource policy. Board members do not
even receive variable remuneration. The remuneration of the independent Board members
may not be compared with that of Company executives, because they are not employees and
do not have the same labor rights or benefits.
[4.5]
Evaluation of the Board of Directors is up to the
Company shareholders, who may reelect or remove Board members at the General Meeting,
based on performance. The performance of the
executive board is measured based on the execution of the approved strategic planning, which is
focused mainly on investment in logistic projects
that drive economic, social and environmental
gains, such as the use of railways and pipelines
for product transport. [4.10]
Economic, environmental and social performance
is overseen in weekly meetings of the Executive
Board and monthly meetings of the Board of Directors. During these meetings, which are documented in minutes, risks and opportunities are
evaluated through financial and commercial reports and performance indicators. The Board of
Directors is responsible for directly contracting
an independent external auditing firm, which
verifies Company activities on a quarterly basis
in accordance with international IFRS standards.
The Company has also mapped the risks inherent
to its activities, as described in the chapter on
Risk Mapping. [4.9]
44
Councils and committees
To advise the Board of Directors, the new governance model also stipulated the implementation of
a Consulting Council and seven support committees.
Although they do not have deliberative power, these
structures support Board members for the definition of guidelines and strategies, through studies,
forecasts and the gathering of specific information.
[4.1]
The main purpose of the Consulting Council is to
help the Board of Directors to deal with any requested matter. It is composed of up to 50 members,
whether shareholders or not, who are producers
with a broad knowledge of the sugar-energy sector
and the particularities of the regions in which Copersucar operates, so that they may contribute to
the efficient management of the business. [4.1, 4.7]
Of the seven committees approved, the Audit and Risk
Management Committee and the Institutional Committee are already in operation. The latter, previously
known as the Institutional Relations Committee, deals
with relations between the Company and professional and sector associations and public authorities. The
Sustainability Committee, which is being implanted,
has been elevated from executive level and now reports directly to the Board of Directors, the objective
is to drive this theme further into Company strategy.
The other structures to be implanted are the Strategy,
Human Resources and Remuneration, Finance and
Related Parties committees. These new structures will
be effectively implemented during the crop year
2012/2013, and all will consist of between three and
five members drawn from the Board of Directors or
the Consulting Council. [4.1]
Among these support structures, only the Consulting Council will have monthly meetings. The Institutional Committee and the Audit and Risk Management Committee meet every two weeks. Once the
The Company
other committees are effectively installed, they will
be convened as necessary or as requested by the
Board of Directors. The support bodies will have
two-year mandates as the Executive Board and the
Board of Directors have as well.
The governance system also features an Audit
Council, which existed in the Company’s previous
structure. This comprises three effective members
and three substitutes, chosen by the Board of Directors. Members’ remuneration is established by the
General Shareholders’ Meeting. The Audit Council
is responsible for verifying Copersucar’s financial
statements and for inspecting the accounts of Company managers. [4.1]
In 2012, a Corporate Governance Secretariat was
created, with the objective of articulating and coordinating the diverse agents of the corporate
governance system in accordance with legislation,
Company bylaws and rules and best governance
practice. The Secretariat is also responsible for
Corporate governance
General Meeting
Corporate
Governance Secretariat
Audit Council
Board of Directors
Chairman
Internal Audit and
Independent External Audit
Consulting Council
Permanent Committees
Institutional
Relations
HR and
Remuneration
Strategy
Finance
Audit and Risk
Management
Sustainability
Related
Parties
Planning Department
Commercial Department
Administration and
Finance and Investor
Relations Department
Logistics Department
Shared Corporate Functions
Trading
Logistics
Risk
Administration and Finance
Planning
Human Resources
New Business
Communication
Copersucar S.A.
45
The Company
Copersucar employees
integrating the deliberative and executive
spheres of the Company to optimize administrative performance.
Since it is a private corporation, all Copersucar
shareholders participate in its control and all are
members of the Consulting Council, having equal
rights of expression.
During the crop year 2011/2012 Copersucar instituted an Organizational Engagement and Climate Management Committee with representatives from different Company processes. The
objective is to establish a formal communication
channel between employees and senior management. This group meets periodically to deal with
46
issues related to the work environment. It does
not address matters such as the Company’s economic, environmental and social performance.
[4.4]
Executive Board
The Executive Board is responsible for strategic
planning and the direct management of the Copersucar business model, based on the execution
of the guidelines issued by the Board of Directors.
These are the Chief Executive Office, the Chief
Financial Officer and Director of Investor Relations, the Commercial Executive Director, the Logistics Executive Director, and the Planning Executive Director. The latter was instituted after
The Company
Dialog channels
One of the Company’s dialog channels with employees is the organizational climate survey, which was
initiated in November 2010 and will be conducted every two years. The survey was conducted among
the entire employee body and obtained their opinions on diverse Company processes. This work gave
rise to the Climate Management and Organizational Engagement Committee, consisting of an average of ten employees from different departments. They discuss proposals for improvements and monitor the implementation of actions in monthly meetings. The Human Resource department transmits
these discussions to the Executive Board.
To make recommendations to senior management, employees may also contact the Human
Resource department or use the Ethics Channel, launched together with the Code of Business
Conduct, which also receives reports on breaches or suspected breaches of conduct. All the
messages sent by the Ethics Channel are received simultaneously by the Human Resource and
Audit departments and the Chief Executive Officer. All the messages are answered. The e-mail
address is [email protected]. For the shareholders, the meetings of the Board of Directors and the support committees constitute direct communication channels with Company
management. [4.4]
the review of the Company’s governance practices, during which process the function of Investor Relations was also realigned.
Like the Board of Directors, the Executive Board
also have a two-year mandate and may be reelected. The Copersucar bylaws stipulate that the
positions of Chairman of the Board of Directors
and Chief Executive Officer may not be exercised
by the same person. The members of the Board
meet on a monthly basis and as necessary, while
the executive board meet weekly or whenever
convened by any of the officers. [4.2]
Variable remuneration for Copersucar management, including the Chief Executive Officer and
other directors, is linked with the Company’s
financial performance and each business area’s
formal targets. The overall and individual targets are incorporated into the annual Performance Management Program, which is extended to all employees and is measured quarterly.
[4.5]
Risk mapping
In accordance with company risk management policy
and as a corollary to the restructuring of the governance model, during the crop year 2011/2012 Copersucar mapped the risks inherent to Company activities, led by the Audit and Risk Management
Committee and supported by KPMG Risk Advisory.
Eighteen strategic risks were identified and a series
of monitoring indicators were created, including commodity pricing limits, hedge and foreign currency
limits, evaluation of sustainable practices in the supply chain, government tariff barriers, mentions in the
media, absenteeism and the management training
program. This process represents the evolution of
the monitoring the Company had already been undertaking during the most recent crop years.
In the crop year 2012/2013, the Committee will
implant a monitoring panel, whose function will
be to track these indicators. The data obtained
will be reported to the Audit and Risk Management Committee.
Copersucar S.A.
47
The Company
Precautions and opportunities in climatic change
The risks provoked by changes in the climate can have a significant impact on agricultural production
and, subsequently, on Copersucar’s operations. For this reason, the Company systematically monitors
climate conditions and prognoses elaborated by a company specialized in meteorology. This information is shared with the Partner Mills. The Company uses it for strategic decision making and, if necessary, modifies its operating plans. [EC2 C]
Additionally, the Partner Mills invest in research conducted by the CTC to develop varieties of transgenic cane, which are more resistant to weather oscillations and provide a higher yield per hectare.
Research is also directed at developing plants with a higher sugar content, greater tolerance to drought and higher resistance to pests (www.ctc.com.br). [4.11]
The risks mapped include financial risks, sustainability-related risks throughout the chain, crop scenarios, government influence over the business,
corporate communication, transparency towards
stakeholders and human resource policy.
Once the system has been consolidated, a new mapping cycle will be initiated and the indicators will be
revised. This will be an ongoing process to ensure
it stays up-to-date and drives business continuity.
In order to assess controls designed to safeguard
Company physical and financial assets, during the
crop years 2010/2011 and 2011/2012, audits were
conducted at the TAC and TEC units and at the
head office’s Finance department, in line with internal audit procedures and methodologies established by the Instituto dos Auditores Internos do
Brasil [Brazilian Institute of Internal Auditors]. No
asset losses were detected during this process. The
three units audited correspond to 43% of Copersucar units. [SO2 C]
Code of conduct
The Copersucar Code of Business Conduct reflects
the Company’s values, sets forth its moral and
ethical principles and establishes standards of conduct for all its employees and subsidiaries. Used
by some of the Partner Mills as a basis for their
own codes, it addresses issues related to diversity;
equality of opportunity and respect in the work
environment, preventing harassment; child, slave
or forced labor; protecting Company information;
48
The Company
use of Company resources; and relations with customers, competitors and public authorities. It also
sets forth the Company’s positioning on bribery,
fraud and corruption.
A new edition of the Code was published in June
2011 incorporating specific clauses on Copersucar’s
sustainability policy; relations with shareholders
and guidance for communication with this public;
insider trading, the disclosure of relevant information; and the definition of those authorized to speak
for the Company (spokespersons).
The second version of the document was sent
to all employees by email. For service suppliers
working inside the Company, there is a specific
measure focused on Insider Information. The
Code of Business Conduct is available at the
Copersucar website at www.copersucar.com.br/
codigo_de_conduta_empresarial.
In addition to disseminating Copersucar’s moral
and ethical principles, the Code constitutes an
institutional reference for the conduct of all Company employees and subsidiaries, regardless of
the individual’s job or function; it provides a
means of ensuring ethical behavior throughout
the business in compliance with the law and Company values.
The Code is included in the training for new employees at the office and the Copersucar Sugar
Terminal. This includes lectures and distribution
of printed materials. In the crop year 2010/2011,
45 office employees (managers) and 115 TAC
(non-managers) were trained, corresponding re-
Fight against fraud
Copersucar pays close attention to potential irregularities in the sugar and fuel distribution markets.
Regarding ethanol, the Company is fully compliant with the law and only commercializes the product
through companies accredited by the ANP (Associação Nacional do Petróleo, Gás Natural e Biocombustíveis). In the event that a customer is disqualified by the regulatory body, the company immediately discontinues the sales contract. In the period 2010 /2011, no cases of corruption were detected
in Copersucar or its units. [SO4 C]
Conflicts of interests
The Company is compliant with the Brazilian law and makes it a point to make sure that its contracts
with other agents are clear.
The possibility of a divergence of interests between Copersucar and its shareholders, who are the
sugar and ethanol producers, is recognized as a risk by the Company. Every effort is made to guarantee transparency in all supply and service contracts.
The Code of Business Conduct contains specific guidance on this subject, dealing with business
interests outside the Company, relations with suppliers, presents and gifts, and family relationships. [4.6]
Copersucar S.A.
49
The Company
Mission, Vision and Values [4.8]
Mission
Copersucar’s mission is to generate value through the vertical integration of the sugar
and ethanol business chain. It creates value sustainably based on:
• Logistic capacity;
• Differentiated commercial operations: scale, relevance and reliability;
taking positions in the physical and future markets; risk management;
capacity to arbitrate between products, channels and origins;
• Operational excellence.
Vision
To be the leader in the global supply of sugar and ethanol, with a 30% share
of domestic sugarcane production:
• To have significant presence in the main world markets and committed to its
customers’ success;
• Brand recognized as a global player;
• Professionals differentiated by their business vision and competencies that drive
value creation.
Values
Integrity
Copersucar does business in an ethical and open manner, adopting best corporate
governance practices in its routine activities and in its relations with employees,
customers, suppliers and shareholders.
Respect
Copersucar is committed to doing business with the utmost respect for people, for
society and for the environment.
Value creation
Copersucar establishes long-lasting business relations, creating value for its customers,
shareholders, employees and partners.
Operational excellence
Copersucar invests in the continuous improvement of sugar and ethanol management,
logistics and commercialization processes.
Sustainability
At Copersucar, sustainability means creating value for shareholders and for society,
managing risks and striving for economic, social and environmental development for
current and future generations.
50
The Company
spectively to 23% and 38% of total headcount.
In the following crop year, all the 193 employees
at the head office and 324 in the Sugar Terminal
received training. The Company is studying the
possibility of implanting an online refresher
course. [SO3 C]
the Company participates actively. The Chairman
of the Copersucar Board of Directors is on the
Unica Board, and representatives of the Partner
Mills are also active in the association. In specific
situations, the Company also deals directly with
public authorities. [4.13]
Influence over public policy
Copersucar is also a member of the International
Ethanol Trade Association (IETHA), a body promoting international trade in ethanol through the development of market tools designed to transform
fuel ethanol into a global commodity. [4.13]
Copersucar seeks to influence public policy that
directly impacts its business through participation
in legitimate, representative professional and sector associations in which there is a convergence of
interests. The main sector association is Unica
(União da Indústria da Cana-de-Açúcar), in which
The Company accompanies and participates in discussions with the government on major themes of
Multimodal Terminal in Ribeirão Preto
Copersucar S.A.
51
The Company
interest to the sector, seeking to facilitate its development in the country. The major themes on the
ethanol sector public agenda are guaranteeing supply for the Brazilian market and instituting the ANP
(Agência Nacional do Petróleo, Gás Natural e Biocombustível [National Petroleum, Natural Gas and
Biofuel Agency]) as the regulatory body for the
product. Also on the agenda are the growing demand for investment in production and the need for
public authorities to recognize positive externalities
for this biofuel. [SO5 C]
Under the Company’s governance structure, the
Institutional Committee is charged with overseeing government relations. It is responsible for
assessing relations between the Company and
government regulatory bodies such as the ANP,
ANTT (Agência Nacional de Transportes Terrestres [National Land Transport Agency]), Antaq
(Agência Nacional de Transportes Aquaviários
[National Waterway Transport Agency]) and, at
state level, the environmental authority Cetesb
and the port authority Codesp, which administers
the Port of Santos.
Relations with public authorities and regulatory
bodies are addressed in the Code of Business Conduct, which stipulates that any contributions to
electoral campaigns must be within the law. Contributions were made during the crop year
2010/2011 and were duly disclosed in accordance
with legal requirements.
Copersucar Stakeholders [4.14]
Communities
Shareholders
Banks and
Financial
Institutions
52
Professional
and sector
associations
and NGOs
Partner
Mills
Press
Logistics,
goods and
service
suppliers
Competitors
Customers
Non-partner
mills
Employees
Government
The Company
Stakeholder relations [4.15]
In line with best corporate governance
practice, Copersucar maps and seeks to
engage its key stakeholders.
Since 2009, Copersucar has mapped the stakeholders that directly or indirectly impact or are impacted by the Company. The Partner Mills exercise a
dual role as stakeholders, each clearly defined and
distinct, since they supply the major part of the
sugar and ethanol commercialized and are also
shareholders in the Company. At the other extreme,
Copersucar’s customers represent another stakeholder which is indispensible for the Company’s
performance and continuity.
For the Company, whose operations are primarily
related to trading and logistics, the concept of community and future generations is a broad one, involving working responsibly to manage positive and
negative impacts in the short, medium and long
term. This is reflected on its private social investment projects focused on education in the communities where it operates.
With respect to banks, financial institutions, competitors and the media, Copersucar recognizes that
best practice, ethical conduct and frequent communication on relevant themes help create a good
reputation and market credibility, further reinforcing efficient management of the Company.
Awards and recognition [1.1, 2.10]
The company’s employees are essential to its routine operations and constitute a focus of ongoing
engagement. The same is true for our logistics
suppliers, who play a fundamental role in the
business. Work on engaging this stakeholder is
already underway (read more in the chapter on
Logistic efficiency).
Other important stakeholders include the non-partner mills and suppliers of other goods and services,
professional and sector associations representing
Copersucar’s interests, non-governmental organizations active in the sector, as well as the press. With
respect to the government, relations are subject to
the same ethical standards as other Company relationships and are addressed through the Institutional Committee.
Community relations are a theme that is more relevant for the Partner Mills, one which Copersucar
strives to keep close tabs on through performance
indicators and a close relationship with the mills.
In the crop year 2011/2012, Copercucar received important recognition in the media for its performance:
• For the second consecutive year, the magazine
Globo Rural elected Copersucar the Best Company in the categories Sugar and Ethanol and
Overseas Trade. The Cooperative won the same
awards in the crop year 2010/2011 and in previous years;
• The 2011 edition of the publication Valor Grandes
Grupos recognized Copersucar´s performance in
the Trade sector as number one in gross revenue
growth and number two in return on assets;
• In the Annual publication Valor 1.000, Copersucar came first in Profitability and Asset Turnover
in the Sugar and Ethanol sector and second in
the sector ranking for its performance in the
crop year 2010/2011;
• In the edition of the Best of Dinheiro magazine,
Copersucar had the highest Corporate Governance rating for agribusiness and was among the
best two in the sector in the period 2010/2011.
Copersucar S.A.
53
Sustainability at
Copersucar
Sustainability at Copersucar
Copersucar seeks to be one of the key players of the sustainable
development model in Brazil. The Company reinforces its commitment
to sustainability and stakeholder engagement with committees
and structures at all administrative levels.
4.1. Challenges and
opportunities
Copersucar sees sustainability as one of the
pillars of its strategy to grow and ensure its
continuity. Its mission is to integrate the sugar
and ethanol chain and generate value sustainably for its major stakeholders – suppliers, shareholders, customers, employees and society in
general. The Company strives to respond to the
requirements of a market which increasingly
demands best social, environmental and economic practices.
As a sugar and ethanol trading operation integrated with production, the Company seeks to encourage its 48 independently managed Partner Mills
to incorporate major sector sustainability themes
into their processes. To this end, it promotes awareness and the development and sharing of new
technologies and knowledge; it also presents them
with market trends and seeks to demonstrate the
positive impacts that best practices represent for
the business. The Company is committed to the
development of the chain and improvements
throughout the sector.
Since the crop year 2010/2011, Copersucar has
had a system for monitoring and collection of social, environmental and economic indicators based on Global Reporting Initiative (GRI) methodology. With a digital tool developed specifically to
monitor the GRI indicators by the internet, the
mills report their performance in diverse areas.
The Company systematically promotes meetings
and provides information to help the mills to better understand the concepts and practices related
to the indicators.
Research on sugarcane varieties
56
All the Partner Mills take part in the monitoring
system to varying extents, and are willing to implement the principles of sustainable development in all units. It is an ongoing challenge for
Copersucar to engage them, in particular the
most recent members.
Mechanized sugarcane harvest at Partner Mill
Copersucar S.A.
57
Seedling nursery for reforestation at Partner Mill
4.2. Governance of
sustainability
The model of governance for sustainability was elaborated based on best corporate governance practices and is supported by a sustainability policy
approved by Copersucar management which guides
all Company actions. As such, in June 2011 Copersucar instituted its Sustainability Committee as a
management support body consisting of Company
managers and members of the Consulting Council.
It has the following powers:
(a)To deliberate on the Company policies and plans
for the sustainability management system;
(b)To monitor the Sustainability Management
department’s action plans and initiatives, indicating any adjustments that may be necessary;
(c)To monitor production of the Sustainability
58
Report with a view to preserving the Company’s
image and reputation and preserving the balance between the economic-financial, environmental and social dimensions in the sustainability system;
(d)To monitor the commitments stemming from
the adoption of the GRI standard by the Company and its counterparts, from the legal requirements presented by the market and
other sustainability protocols, suggesting any
necessary adjustments; and
(e)To analyze, evaluate the impacts and suggest
solutions for any conflicts arising in the sustainability systems of the Company and its
counterparts.
To ensure the adoption of sustainable practices,
the Executive Management determines the planning and monitoring of related actions. The direc-
tor of Planning is responsible for managing sustainability, overseeing the technical coordination
department, which is charged with engaging the
Partner Mills and transmitting market requirements to them. Meetings are held on a weekly
basis to supervise activities and provide general
guidance. [4.9] The structure is completed by the
facilitator group and the Company and mills’ technical groups, which discuss sustainability issues
pertinent to the sugar-energy sector and society
in general.
Copersucar’s initiatives and actions are aimed at:
• Generating value to positively influence economic,
social and environmental change;
• Promoting sustainable practices throughout the
value chain;
• Ensuring integral, ethical and transparent relations;
• Managing the business risks associated with sustainability processes;
• Disseminating knowledge and stimulating sustainability among its stakeholders;
• Elevating employee awareness on their socio-environmental role.
Copersucar sustainability policy
Sustainability in the Company is based on strategies that guide its decisions, strengthen relations with its diverse stakeholders and reinforce
its commitment to the well-being of current and
future generations.
Copersucar maintains a structure to manage and continuously improve the policies, procedures and processes related to its sustainability system. This model includes the monitoring of the system, taking into account
the presentation of the governance structure, sustainability-related legal requirements, actions related to
the Company’s value chain, code of ethics and relevant
documentation, as shown in the diagram below.
Copersucar Sustainability Management System Model
PLAN
Navigator
Value Chain Management
Policy, Mission, Vision and Values
Communication with Stakeholders
DO
Governance Structure
Sustainability Guidelines
Risk Management
Competence and Training
Copersucar
Presentation
Legal and Other Requirements
Audit and Assessment of Conformance
Glossary
CHECK
Documentation Requirements
Information Flow
Stakeholder Engagement
Control Panel
Code of Ethics
Corrective and Preventive Actions
ACT
Analysis by Management
Copersucar S.A.
59
Copersucar Sustainability Process Model
Joint
elaboration
Suppliers’
suppliers
Suppliers:
packaging,
transport,
storage and
non-partner mills
Multimodal Terminals
Sugar Terminal
Mills’
Suppliers
Head Office
Partner Mills
Market
4.3. Engagement in practice
In the crop years 2010/2011 and 2011/2012, the
Sustainability department promoted nine meetings with the mills to explore sustainability-related
themes aimed at expanding knowledge and stimulating more efficient ways of managing impacts at the Partner Mills. To this end, specialists
in sustainability were invited to talk on relevant
60
issues in the sector, such as emissions, biodiversity and water resources, forms of mitigation and
best sustainability management practices.
In the crop year 2009/2010, Copersucar performed
its first greenhouse gas (GHG) emissions inventory, based on Greenhouse Gas Protocol Brazil
methodology, taking measurements in four mills.
This was done by a specialized company, which
Dissemination in the chain
In the value chain engagement process, the Partner Mills conducted, as per Copersucar’s request, the engagement of its cane suppliers, by evaluating them through a 30-item protocol
referring to environmental, social and labor relation practices. The process was of self-assessment and allowed the reporting on elimination of the burning of sugarcane, disposal of agrotoxin packages, use of agricultural defenses, use of personal protective equipment (PPEs), among
other aspects.
This work was conducted during the crop year 2010/2011 and 28 of 39 Partner Mills participated in
it, with the adherence of 86 suppliers. Its objective was the continuous inclusion of the most number
of suppliers in compliance with sustainability questions.
developed an electronic system with standardized
criteria and calculation procedures. In 2010/2011,
the Company made the GHG measuring tool available to all Partner Mills, so that they could perform their own emissions inventories (read more
in Climatic Change).
The engagement initiative also incorporates incentives for the mills to influence their own supply
chains. In the evolution of the Company’s commitment to inducing sustainable development throu-
ghout the value chain, Copersucar is working on
engaging logistics suppliers and is now studying
how it may influence non-partner mills.
With the learning acquired through monitoring of
indicators, the Company selected seven GRI indicators to make up the Copersucar Index. This is aimed
at establishing a reference against which the Partner Mills may measure their performance in relation
to the Index and to seek improvements, if considered necessary.
Copersucar Index – crop year 2011/2012
Indicator
Focus
CI
Unit
EC5
Variation in ratio of lowest salary to
national minimum salary
1.1
mill salary /minimum salary
LA10
Hours of training per total number of employees
46.4
hrs/mill employee
EN4
Energy consumed
19
kWh/TC
EN8
Total water withdrawn
1.8
m3/TC
EN10
Total volume of water recycled and reused
11.96
m3/TC
EN18
Raw cane mechanization rate
0.7
Mechanized and crude TC /TC
LA7
Health and safety index
2.6
nº of accidents per 100 thousand TC
Copersucar S.A.
61
4.4. Commitments to sustainability
Fulfillment of Copersucar commitments assumed in the report published in the crop year
2009/2010 [1.1, 1.2]
62
Commitments
Actions
Status
Information Management
Computerize data gathering to optimize
consolidation of information
Implantation of software for GRI indicator
monitoring system at head office, TAC and
Partner Mills
Fulfilled
Credibility
Carry out external verification for
next GRI report
Verification of 2010/2011 – 2011/2012 report
done
Engagement
Increase stakeholder engagement to review
materiality for next reporting period
Consultation process extended to eight
stakeholder groups: employees; Partner Mills;
Fulfilled
customers; logistics suppliers; NGOs and
institutions; press and financial institutions
Biodiversity
Develop education for biodiversity program at
Partner Mills
Organization of workshop on theme for
Partner Mills
Emissions inventory
Disseminate Copersucar emissions calculation tool
to enable Partner Mills to undertake their own
studies
Support for undertaking of emissions
inventories in four Partner Mills and
dissemination of results to all mills
Green Logistics
Implement systematic measurement of compliance
with Copersucar requirements for sustainable
transport of sugar and ethanol
Implementation of program, which is now in
its second stage
Partner Mills
Implement systematic measurement of compliance
with Copersucar sustainability requirements in
Partner Mills’ supply chains
Partner Mills applied questionnaire to three
major suppliers; Copersucar analyzed the
results
Conscious consumption
Reduce amounts of printing paper and ink used at
the office
Internal awareness campaign aimed at
reducing printing paper consumption by 2%
Education for sustainability
Continue education for sustainability process with
activities designed to drive changes in behavior
Periodic talks, meetings and dialogs on
sustainability, with some initiatives extended
to employees’ families
Social investment
Extend and systematize investments aligned with
strategy of incentives for education and
preservation of national memory
Evolution in monitoring and growth of social
investments
Fulfilled
Fulfilled
Fulfilled
Fulfilled
Fulfilled
Ink for printers:
fulfilled.
Printing paper: target
not met.
Fulfilled
Fulfilled
Copersucar commitments for the crop years 2012/2013 – 2013/2014 [1.2]
GHG Emissions
Carry out
measurement
of ethanol
emissions cycle,
from production
facility to shipment
at port
Social
Responsibility
Definition
of investment
policy
Community
Development of
methodology to
measure impact of
production operations
and logistics units
in the community
Copersucar
Conscious
consumption
Organization of
internal campaigns
to reduce consumption
of printing paper
by 2% at the
head office
Bonsucro™
Certification
Increase volume of
certified product
by 1 million metric
tons of cane
Supply
Chain
Partner Mills
Intensification
of engagement
programs to reduce
water consumption
Partner Mills
Engagement
in cane
supply chain
Non-partner
mills
Engagement
of originated
product suppliers
at 100% supply
Copersucar S.A.
63
Material themes
for stakeholders
Material themes for stakeholders
Aside from assuring transparency and efficiency in management, Copersucar
excels for the quality of its processes and commercialized products throughout
the business chain, from the mills to the end customer, in compliance with the
best practices, and respect to people and the environment.
5.1. Transparency in business
This indicator is addressed in
chapter 3 – The Company, pages 20 to 42
5.2. Ethics and governance
This indicator is addressed in
chapter 3 – The Company, pages 42 to 53
5.3. Product responsibility
Sector context
Due to the fact that sugar is a food product, the
main issues regarding its quality involve consumer health and refer to contamination, from the
raw material (sugarcane), passing through the
production and storage processes, up to distribution to the final destination. Non-conformity cases with respect to physical-chemical characteristics, which determine product specificities and
must be reported in the technical detailing, are
also analyzed.
66
In Brazil, flexible fuel vehicles can run on gasoline
(now with the addition of ethanol between 18%
and 25%) or on up to 100% ethanol, supplied directly in the tank. The dual fuel engine offers wide
freedom of choice to users that can choose fuel
in accordance with its price, availability in the
market and vehicle performance, considering the
differences in motor performance with the use of
gasoline or ethanol. Countries like the United
States, Canada, the United Kingdom and Germany, among others, have vehicles with technology
for the use predefined blends of gasoline and
ethanol; but in Brazil alone vehicles have flexibility to operate with blends of any proportion, at
the consumer’s discretion.
Assured quality [PR1 C]
The criteria for ethanol take into account, most especially, the physical-chemical aspects related to
fuel performance and to emissions generated during the product life cycle, aside from safety aspects
directed toward storage and distribution.
Consumer health and safety related procedures that
use sugar and ethanol are the responsibility of the
Partner Mills, but the products also pass through
Copersucar’s control. Product quality management
is based on specific manuals, method standardization and equipment calibration to obey Brazilian law
and quality standards referring to sugar and ethanol. The markets are regulated respectively by the
National Health Surveillance Agency (Anvisa) and
the National Petroleum, Natural Gas, and Biofuel
Agency (ANP.)
In 2011, a Provisional Measure granted the National
Petroleum, Natural Gas and Fuel Agency (ANP) the
power to inspect not only products available in the
market, but also the entire production chain, from
the cane in the field.
On an international level, sugar follows the standards of Codex Alimentarius, of the United Nations Organization (UN), for food standardization,
and meets the specific quality requirements of
every country.
Copersucar also stimulates the Partner Mills to follow the parameters established by the FSSC 22000
certification, which takes into account ISO 22000
associated to ISO/TS 22002-1 on food safety, and by
ABNT standard NBR 17.505, which deals with storage and operation of flammable liquids. Through a
management program, the Company checks annually the degree of the mills’ adherence to the standards’ requirements.
In the crop year 2010/2011, the audits had a total
of 1,440 man-hours per day, with a focus on pro-
cess analysis, quality, socio-environmental responsibility, food safety and other requirements that
contribute to management improvement at the
mills. These audits take place every crop year, are
conducted by an independent auditing company
and are part of a program conducted by Copersucar since the crop year 2000/2001 (read more on
page 71). Copersucar did not record cases of legal
non-conformities, fines for non-compliance with
applicable regulations during the period, and there
were no requirements of this type along with the
Legal Department. [PR2 C]
Sugar storage at Partner Mill
Copersucar S.A.
67
The quality precepts followed by the Partner
Mills are also set forth in origination contracts
with non-partner mills. Even though with less
power of influence on quality management,
Copersucar started, in the crop year 2011/2012,
an integration program to share some process
improvement initiatives conducted by Partner
Mills.
Quality control [PR1 C]
At the beginning of the crop year, Copersucar defines the technical specifications of products that
will be commercialized during the period, in accordance with internal needs and market requirements. The mills guarantee delivery in conformity with the specifications through a established
quality control plan for product monitoring in all
manufacturing phases. In case of risks of contamination, an annual pesticide and heavy metal
residue program is conducted, involving all the
Partner Mills.
Sugar that proceeds with exportation goes through
a new quality control at the Copersucar Sugar Terminal (TAC). The entire incoming bulk sugar is monitored by an independent supervising company that
issues daily quality reports. Similarly, bagged white
sugar is inspected by the terminal’s own laboratory,
and whenever necessary, an independent supervising company can also perform the monitoring of
this product.
The TAC warehouses are maintained under strict
cleaning, hygiene and pest control. The holds of
cargo vessels also pass through inspection before
loading at the port. The control process has been
replicated at the Container Stuffing Terminal (TEC),
in Guarujá (SP), and at the terminals used by Copersucar for exportation of ethanol and sugar from
Santos (São Paulo) and Paranaguá (Paraná), where
quality supervisors carry out periodic inspections.
68
In the event that any inadequacy is identified in
the product specification in any of the stages,
the producing unit is notified and, if any deviation is confirmed, Copersucar interrupts the provision and informs the mill so that it may adjust
its process.
The end customer receives 100% of the ethanol and
sugar accompanied by the product’s certificates of
quality and has access to technical specifications
and Material Safety Data Sheet (MSDS), with data
on safety and measures for preventing environmental impacts during use. [PR3 C]
No labeling irregularity was identified during the
period and the Legal Department was not summoned to act on any case of non-conformities with
voluntary regulations or codes regarding the matter. There was, however, one incident in a batch of
commercialized sugar that contained small plastic
particles proceeding from the packaging. Copersucar conducted the segregation and proper disposal
of the contaminated product and assumed all costs
involved in the operation. [PR4 C, PR9 C]
Complaints
Copersucar monitors all complaints received and
classifies them by type of occurrence. During the
last two crop years there were no complaints or
fines related to breach of customer confidentiality clauses. [PR8 C] Most records referred to
delivery of products with packaging damaged
during the transport of white sugar. In these
cases, the Company receives the product back
and charges the transport service provider for
the additional cost resulting from return of the
product. Other notifications included requests for
adaptation to the law of the importing country,
particularly requests originating from Colombia
and the Middle East. The Company met all these
requirements.
Packaging area at Partner Mill
In 2011, a pilot project was started to decrease the
incidence of complaints. Three Partner Mills were
selected to participate and had the most frequent
types of complaints analyzed. The objective is to
study ways on how to reduce the records of occurrence, to create a standard procedure and to replicate it in all mills.
Copersucar does not measure customer satisfaction
systematically. Feedbacks are received directly by
the commercial department, which maintains close
relations with the customer. To ensure personalized
service, each salesperson handles specific customer accounts.
Complaints about product quality go to the Copersucar Quality department, which forwards them to
the responsible Partner Mill. The mill then analyzes
the complaint and takes the necessary corrective
measures under Copersucar’s supervision. To improve the response to complaints, at the end of the
crop year 2010/2011 all the Partner Mills underwent
training provided by a specialized consulting firm.
Occasionally Copersucar conducts studies and researches directed to the internal market. The objective is to follow-up customers’ perceptions and
needs and, then, to review sugar and ethanol specifications and related processes. [PR5 C]
Copersucar S.A.
69
Quality control laboratory at the TAC
Certifications and compliance
with standards
The concession granted by the dock authority
Codesp requires international certification for the
terminal. Consequently the TAC has an Integrated
Management System (IMS), incorporating ISO
9001:2008, ISO 14001:2004 and OHSAS 18001:2007
standards, related respectively to quality, environmental management and occupational health and
safety. Semiannually, the terminal undergoes audits
contracted by Copersucar, and the certifications are
renewed every three years. A large part of TAC
practices are replicated in the Company’s other terminals, which are not certified.
Copersucar encourages the Partner Mills to obtain
certification because of the value this adds to the
product and to the business, especially when they
70
are required by the customers. Currently, seven
mills have FSSC 22000 food safety certification for
white sugar production, corresponding to 44% of
the product commercialized in 2011/2012. These
mills are: São José ZL, Barra Grande, Quatá, São
Manoel, São Francisco, Santo Antonio and Santa
Lúcia.
In ethanol, Copersucar motivates compliance with
the NBR 17.505-1:2006 safety standard for flammable liquids and fuel storage required by fuel distributors. Sales to the United States require Renewable Fuel Standard (RFS2) registration from the US
Environmental Protection Agency (EPA), as well as
proof that the sugarcane used in producing the biofuel does not come from deforested areas. Copersucar was one of the first companies to obtain approval for exports to the US, and currently 39
Partner Mills are registered.
Service differentials
The Copersucar Service Differential Program submits all the Partner Mills to external audits to check
manufacturing practices, finished product safety, the calibration of equipment and team training. The
sugar and ethanol are analyzed at the mills’ own laboratories; when necessary, samples are sent for
analysis at external laboratories.
The mills are ranked according to the audit results. Mills whose results are below the required standards are notified and required to implement the necessary improvements.
In a new cycle of improvements, the program was restructured following the crop year 2010/2011.
Known now as the Supplier Qualification program, the new model reinforces the need for greater
alignment with domestic and international market requirements, recognizing the units that strive to
ensure food safety.
As a global company, Copersucar must comply with
the environmental and social legislation in the countries in which it has customers, such as Japan and
European Community countries, as well as the USA.
As such, it tracks legislative developments in these
countries to ensure requirements are met throughout its production chain. [4.9]
Copersucar provides proof of compliance with legal
requirements in the countries in which the product
will be used in the form of declarations issued and
signed by the Company’s executive directors. These
declarations, normally requested by the customer,
cover the principles of sustainability (social and environmental requirements). [4.12]
dedicated to establishing principles and criteria
for protecting the environment and ensuring stable employment conditions in the sector, in addition to generating economic benefits and business opportunities.
Copersucar joined the organization in the crop
year 2011/2012. Bonsucro™ certification attests
to the use of sustainable practices in biomass processing, ranging from sugarcane cultivation to
sugar and ethanol production. Copersucar and
five Partner Mills (São Manoel, Santa Adélia, São
José ZL, Barra Grande and Quatá) producing
white sugar and ethanol have received certification related to the chain of custody and production standards.
Bonsucro™ Sustainability
Certification [4.12]
Bonsucro™ certified Copersucar products
Bonsucro™ is a multi-stakeholder organization
recognized as the main global reference for the
sustainable production of sugarcane and derivatives. The initiative is aimed at standardizing sustainable practices in the production and processing of sugarcane and derivatives worldwide.
Based in London, it is an international forum comprising producers, traders, NGOs and investors
Total cane (t)
Sugar (t)
7,800,000
422,156
Ethanol (m )
3
309,604
In April 2012, Copersucar became a member of the
Bonsucro™ Board in the Industrial category.
Copersucar S.A.
71
Certifications of Partner Mills
ISO 9001
FSSC 22000
Bonsucro™
Melhoramentos
São Manoel
São Manoel
Jacarezinho
Santa Lúcia
Santa Adélia – Jaboticabal
Santo Antônio
Santo Antônio
São Francisco
São Francisco
Zilor – Quatá
Zilor – Quatá
Zilor – Quatá
Copersucar and technology [4.13]
5.4. Health and safety
As a large-scale trader and integrator of the production chain, Copersucar considers technology to
be major driver of competitiveness and added
value. As such, the Company and its Partner Mills
participate actively in the management of the
Sugar Plantation Technology Center (Centro de
Tecnologia Canavieira) (CTC), the major global reference in technology for the sugar-energy sector,
ranging from cane varieties and growing techniques to innovative industrial processes.
Sector context
Copersucar founded the CTC in Piracicaba (São
Paulo) in 1969 to develop sugarcane production and
processing technologies. In 2004, the center was
transformed into a sector organization maintained
by associated sugar and ethanol producers. To increase competitiveness, in 2010 it was converted
into a private corporation whose owners include the
Copersucar Partner Mills.
72
Some of the main risks to the health and safety of
workers in the sugar-energy sector occur in equipment operation, working at heights and accidents
in the transport of workers to and from the plantations. This is one focuses of the National Commitment to Improve Working Conditions in Sugarcane.
This program, implemented by the federal government in partnership with unions and sector associations, is aimed at improving working conditions
on sugarcane plantations nationwide (read more in
the chapter on Human rights and value chain). The
document provides for a joint effort to adopt best
safety practices focused on the provision of appropriate personal protective equipment (PPE) and
awareness of the importance of its use to prevent
accidents in the field (cuts during the harvest and
intoxication from the application of fertilizers and
pesticides, for example).
Cares with professionals
The Company ensures employees to have excellent
working conditions and seeks to influence the
value chain for adoption of good practices.
All Company employees are represented in the
Internal Commission for the Prevention of Accidents (Cipa, acronym in Portuguese), which
consist of three acting members and three substitutes. Collective bargaining agreements, which
cover 100% of the Company’s employees, include
a 50% subsidy for the purchase of medication
and the advance payment and complementation
of sickness and accident allowances. [LA6 C,
LA9 C]
At the head office, employees have flexible working
hours, permitting them to balance work requirements with their personal needs. Employees may
compensate for lateness and absences.
At the Copersucar Sugar Terminal, the absenteeism
rate was 2% in the crop year 2010/2011. At both the
TAC and the head office there were no cases of occupational injury, illness or time off due to workplace accidents. This performance was repeated in
the following crop year. [LA7 C]
At the Partner Mills, where the highest occupational risks in the sugarcane chain are concentrated,
Copersucar motivates the adoption of strict worker
health and safety standards in line with applicable
laws and standards. It also monitors each mill’s performance via established indicators, which are reported periodically.
All Partner Mills employees are represented in the
Internal Commission for the Prevention of Accident (Cipa) or the Internal Commission for the
Prevention of Rural Work Accidents (CIPATR),
specific for agricultural workers, in accordance
with Ministry of Labor and Employment standard
no. 31 (NR 31). [LA6 U]
In the crop year 2010/2011, 32 mills had formal
agreements with unions related to health and
safety for agricultural and industrial employees.
In 2011/2012, 41 mills had agreement in the agricultural area and in the industrial area. The difference is due to the fact that three mills do not
have agricultural areas for which they are responsible. The agreements cover mandatory requirements such as the supply of PPE, additional pay for working in unhealthy or dangerous
conditions, sanitary and hygiene conditions, and
the worker’s right to refuse to work in conditions
offering immediate, serious risk. In the four mills
belonging to the Aralco group, in addition to the
items mentioned above, the collective agreement provides medical and dental assistance for
all employees. [LA9 U]
All the Partner Mills use agrochemicals registered
with the Ministry of Agriculture, Livestock and Food
Supply, application of which is by prescription validated by accredited professionals. The workers who
handle these products receive special training, use
PPE and are subjected to periodic examinations to
eliminate the risk of contamination.
Safety at the Copersucar Sugar
Terminal (TAC)
In the crop year 2010/2011, the TAC implemented
periodic internal occupational safety audits, incorporating these into the terminal’s improvement
program. The initiative led to a reduction in the frequency and seriousness of accidents.
The TAC complies with all legislation and standards
related to worker health and safety. There is a team
Copersucar S.A.
73
specialized in occupational safety that oversees
safety policy and training. The use of personal protective equipment is monitored constantly. Copersucar exceeds regulation no. 29 (NR 29) requirements on health and safety in port work by having
an additional safety technician in the team, which
consists of an engineer and three technicians. The
TAC has a physician on duty for three hours a day
and an assistant nurse.
Third-parties, service providers and visitors to the
terminal undergo training. The terminal also uses
the Safety Training Observation Program (Stop) to
prevent accidents and high risk behavior. In the crop
year 2011/2012, employees took an additional Stop
training program.
Improvement measures in recent crop years include
the manufacture of supports with vibrators to replace manual tools in the discharge of bulk cargo
trailers and the expansion of the new employee integration program from 12 to 44 hours.
Health and well-being [LA8 C]
Concerned about the health and well-being of
the team, the Company has adopted a series of
measures to prevent occupational illnesses, increase awareness of chronic health problems
and promote a healthy workplace. These are incorporated into the Copersucar quality of life
program CoperVida.
Since the crop year 2010/2011, workplace exercise sessions have been held at the TAC three
times a week. A program to monitor musculoskeletal diseases among operators was also introduced. Together the initiatives led to a 38%
reduction in back injuries compared with the
previous crop year.
74
In the head office, in addition to workplace exercises, employees have access to massages and a
walking and marathon programs. As a result of the
work done by the Organizational Climate Management and Research Committee, in the crop year
2011/2012 CoperVida started to offer reflexology
sessions and nutritional guidance. The Company
also implanted a health management program to
monitor chronic diseases such as diabetes and arterial hypertension.
Copersucar organizes talks on health at the head
office and the TAC. At the terminal, the Integrated Management System Daily Dialog project consists of informal conversations between managers and employees before work begins, including
health and safety questions. Once a year, the
TAC organizes an Internal Work Accident Prevention Week (Sipat, acronym in Portuguese). This
is beneficial to employees, third parties and
workers at neighboring terminals, as well as
members of the local community, addressing issues such as smoking, sexually transmissible
diseases (STD) and cholesterol. Occupational
activities involving high incidence or the risk of
specific diseases were not identified in either the
office or the TAC.
Prevention at the mills [LA8 U]
The mills have diversified models for educating,
training and counseling, as well as treating, preventing and controlling risks related to serious
illnesses. The initiatives include monitoring employee health, talks and specific training. In the
crop year 2010/2011, all 39 Partner Mills had an
Occupational Health Medical Control Program
(PCMSO, acronym in Portuguese), covering periodic examinations as well as examinations
upon admission or leaving the Company. Dedi-
Loading of ethanol at Partner Mill
Copersucar S.A.
75
Canteen in cane harvest area at Partner Mill
cated to combating the occupational illnesses to
which agricultural workers are exposed, such as
dehydration and infectious diseases, the program has a preventive focus. It includes hearing
tests every six months and complementary exams every year.
In general, the mills seek to support the measures
taken by local health authorities, which extend to
76
the whole community. These include vaccinations
against serious diseases (H1N1 virus, yellow fever,
dengue, poliomyelitis and verminosis), preventive
campaigns for breast, gynecological and prostate
cancer and the distribution of medication. The
São Luiz mill, for example, partners with the
Ourinhos (São Paulo) city hall in numerous campaigns and community projects. Talks given during the crop year 2010/2011 addressed subjects
such as sexually transmissible diseases (STD),
infections, tuberculosis, Hansen’s disease, alcoholism and drugs. Other units offer internal training sessions focused on the prevention of diseases such as hypertension and diabetes and on
promoting healthy habits and activities.
In the crop year 2011/2012, most of the programs
were preventive in nature and all the mills applied
their PCMSO, which identifies and assesses occupational risks. Most of the programs are aimed at the
actual employees (77%), but some include thirdparties, family members and the community. The
Zilor group promoted a Task Analysis and Safety
program, a management tool that maps all activities
and identifies the risks involved; these are itemized
and transmitted to the employees, accompanied by
all the necessary safety measures. The work started
with the activities associated with the highest risk.
At the end of the process, the information was incorporated into the induction of new employees and
will be used to improve training and risk management in the area.
In 2007, the Santo Antônio and São Francisco mills
of the Balbo group implanted the Rehabilitate Project, a public-private partnership with the Ribeirão
Preto social security service’s Rehabilitation Department, which provides technical support for the initiative. The project is aimed at encouraging employees who are inactive as a result of occupational
illnesses or accidents to rebuild their careers. Participants receive support from a multifunctional
team composed of a physician, nurse, social assistant, physiotherapist and psychologist in finding
new work opportunities. Participation in the project
is voluntary and free of charge. In the crop year
2011/2012, two employees from the São Francisco
mill and one from the Santo Antônio mill benefited
from the program; another 14 employees are currently on the program. The Umoe - Sandovalina mill
provided first aid training for its employees to prepare them to deal with emergencies.
In the crop year 2011/2012, the Jacarezinho mill provided first aid training for all its employees, with a
focus on treating bites from poisonous animals
(snakes, scorpions and spiders).
Thirty-seven (37) of the Partner Mills started monitoring health and safety data for publication in the
GRI report in the crop year 2011/2012. The average
number of accidents was 49 per mill, with the accident rate per 100 thousand metric tons at 2.6.
According to Work Accident Notice (CAT, acronym
in Portuguese), service of the Ministry of Labor,
the rate for the state of São Paulo in the crop year
2006/2007 was 4.6. In the consolidated period,
there were seven deaths in two road accidents. In
each case, the mills provided the families with immediate assistance and accompanied the investigations by the competent authorities. [LA7 U]
Accident rate, days lost, occupational illnesses, absenteeism and work-related
fatalities at the Partner Mills [LA7 U]
Total
accidents
Total
days lost
Number of cases
of occupational
diseases
Average
seriousness
rate *
Average
frequency
rate *
Average number of
accidents per 100
thousand metric tons
of cane crushed
1,799
79,484
23
522
18
2.6
*ABNT – NBR 14.280
Copersucar S.A.
77
5.5. Climate change
Sector context
Mitigating climate change and a possible increase in global temperatures is directly linked
with the reduction of greenhouse gas emissions
(GGE) in the atmosphere, particularly carbon dioxide (CO2), methane gas (CH4) and nitrous oxide
(N 2O). International initiatives have sought to
establish emission limits, emission mitigation
projects and mechanisms for the purchase and
sale of carbon credits, the United Nations Organization’s (UN) so-called Clean Development
Mechanism (CDM).
Brazil is in a privileged position globally due to its
46% renewable energy matrix, according to Ipea
(Instituto de Pesquisa Econômica Aplicada). This
energy comes from hydroelectric sources, from
ethanol (which substitutes gasoline) and from biomass, production of which has been growing in sugarcane mills.
Based on sugarcane, Brazilian ethanol is more advantageous compared with biofuels derived from
other raw materials. Because it produces fewer
Energy efficiency and yield of
different raw materials
9.0
Cane
7.1
2.0
Beet
Corn
5.5
1.3
4
n Energy efficiency
n Yield m3/ha
Source: Worldwatch Institute
78
greenhouse gas emissions than fossil fuels (gasoline and diesel), ethanol is an important alternative
in mitigating climate change, especially in the
countries which have established policies and mandates for the use of biofuels. According to the Cartilha Etanol Verde (Green Ethanol Booklet), a São
Paulo government initiative, the energy efficiency
of ethanol is approximately 9.3, around four times
higher than beet ethanol and almost seven times
higher than ethanol derived from corn.
Reducing emissions
By the very nature of its business,
the Company contributes to the
reduction of emissions, while striving
to minimize its own impacts.
In the crop year 2009/2010, a specialized consultancy was contracted to carry out an emissions inventory using Greenhouse Gas Protocol Brazil
guidelines at four Partner Mills. The mills were selected based on their production volume, their logistics systems and the fact that they export anhydrous ethanol to Europe. The survey enabled them
to calculate their emission levels and to isolate
critical generation factors, information that will contribute to fine tuning emission measurements.
As part of the Copersucar Commitment to the
Evolution of Sustainability presented in the
2009/2010 Sustainability Report, the Company
disseminated the emissions calculation tool to the
other Partner Mills to encourage them to undertake their own GGE inventories. In a workshop
organized by Copersucar, a specialist presented
the methodology and the results of the study and
showed the unit representatives how to use the
tool. Considering the growing interest in this subject and the approval of public policies addressing
carbon emissions in the sugarcane production
chain both in Brazil and overseas, Copersucar rec-
100% self-sufficient
From the results of the emissions inventory at four Partner Mills, it was evident that the mills
commercializing bioenergy based on sugarcane bagasse and straw produce lower emissions,
considering the phase of the cycle from the agricultural unit to the entrance of the production unit.
Today all the Partner Mills have co-generation processes and are self-sufficient in energy, no longer
needing to acquire electricity from utilities or diesel fuel for their industrial operations.
In the crop year 2010/2011, 14 mills commercialized their surplus bio-electricity, totaling 1,445 gigawatts-hour (GWh) – enough to supply a city of around 720 thousand inhabitants, considering per
capita consumption of 2 megawatts-hour (MWh) per year. In 2011/2012, 17 mills commercialized 1,405
GWh (see page 84).
The 17 mills that currently commercialize bioelectricity are: Buriti, Viralcool I -Pitangueiras, Cocal I
– Paraguaçu, Cocal II - Narandiba, Iacanga, Da Pedra, Queiroz, Santa Adélia – Jaboticabal, Santa Adélia – Pereira Barreto, Pioneiros, Zilor – Quatá, Cerradão, Zilor – São José, Zilor – Barra Grande, São
José da Estiva, São Luiz S.A. and Pitangueiras.
ommends that the Partner Mills apply this measurement tool and is at their disposal to provide
additional assistance. [EC2 C]
A common practice in the plantations, burning
sugarcane before the harvest is decreasing
throughout the country and particularly in the
state of São Paulo, as a result of the state’s
Sugar-Energy Sector Agro-Environmental Protocol (Protocolo Agroambiental do Setor Sucroenergético Paulista). This initiative established the total elimination of burning from
sugarcane plantations in which mechanized
harvesting is possible by 2014 and by 2017 for
areas with inclines in excess of 12% (read more
in Human rights).
With respect to logistics, an area in which Copersucar is directly involved, the Company strives to diversify the modes of transport it uses, focused on
driving efficiency and reducing costs and GGE.
Managing risks and opportunities
[EC2 C]
To enable more concrete production projections and
optimize the Company’s and the Partner Mills’ performance, Copersucar has a contract with a specialized consultancy that provides services in climaterelated questions. Even though it is not clear
whether current weather phenomena, such as the
frost and droughts experienced in 2011, stem from
climate changes caused by human action, this work
provides a tool for managing potential climate risks,
even if indirectly.
The partnership also involves systematic meetings
between the consultancy and Partner Mill agronomists to address matters such as the development
of the sugarcane plantations, prospective harvest
volumes and crop climate scenarios.
Copersucar S.A.
79
The initiative is aligned with Copersucar’s
sustainability strategy, which encompasses
education to encourage improved environmental management at the mills. This helps
Copersucar and its Partner Mills to minimize
the negative effects of climate variations on
their activities.
The consultancy also presents recent climate
trends affecting sugarcane growers in Brazil
and trends impacting cane, beet and corn producers in other countries. This is designed to
identify risks and opportunities that have a direct business impact for Copersucar and the
Partner Mills.
The six meetings were attended on average by
25 Partner Mill representatives and generated
a total of 450 hours of information on crop climate scenarios.
Energy efficiency at the Partner
Mills [EN18 U]
In the crop year 2010/2011, 39 Partner Mills processed 82.192 million metric tons of sugarcane.
From this total, 73% was harvested by machine,
of which 57% corresponded to green mechanized harvesting and 16% to mechanized harvesting with burning. Thus, in the period covered by this report, the Partner Mills avoided
carbon dioxide equivalent (CO 2e) emissions to-
taling 742 thousand metric tons. The mechanization rate for the crop year 2011/2012 was
80.6%, of which 70% was green cane harvesting, without burning. The mills Viralcool II – Castilho and Uberaba employ 100% green cane
harvesting.
Eight mills are developing Clean Development
Mechanism (CDM) projects, some under implantation and others awaiting approval from the
United Nations Organization (UN), and five mills
undertake greenhouse gas emission inventories. The Partner Mills do not yet undertake
systematic monitoring of emissions reductions.
Total emissions avoided by mechanized
harvesting (t CO2e)
2010/2011
2011/2012
Total
327,381
414,857
742,238
References:
1. Emissions from burning straw: 14% of dry straw per metric ton of cane stalks (Macedo
and Seabra 2008);
2. N2O + CH4 emission = 0.8836 kg CO2e/kg of straw. Calculation based on following
emission factors (IPCC 2006):
a. 0.07 kg N2O/ t burned dry material;
b. 2.7 kg CH4/t burned dry material;
c. GWP: for N2O = 298; for CH4 = 25;
d. Straw on soil: 14% of dry straw per metric ton of cane stalks (Macedo and Seabra
2008);
e. Emission factor for N2O emitted: 0.0282 kg CO2e/kg of straw left on soil (Macedo and
Seabra 2008, adjusted in accordance with IPCC 2006 GWP);
f. Diesel emission factor: 20.2 g of CO2e/MJ of diesel;
g. Emission factor for N2O emitted: 0.002 kg CO2e/kg of vinasse applied (Macedo and
Seabra 2008, adjusted in accordance with IPCC 2006 GWP);
h. Emission factor for N2O emitted: 0.0715 kg CO2e/kg of filter cake (Macedo and Seabra
2008, adjusted in accordance with IPCC 2006 GWP).
Cane harvest – crop years 2010/2011 and 2011/2012 – Partner Mills
Crop year
2010/2011
2011/2012
Cane production (t)
82,191,878
84,810,673
46,849,370
59,367,471
57
70
605,289
864,155
Total mechanical green cane harvesting (t)
Percentage mechanical green cane harvesting (%)
Total cane area harvested without burning (ha)
80
Type of cane harvest – Crop year 2010/2011 (%)
Type of cane harvest – Crop year 2011/2012 (%)
Manual green cane harvest
Manual green cane harvest
4
2
Mechanized burned cane harvest
Mechanized burned cane harvest
16
10
Manual burned cane harvest
Manual burned cane harvest
23
18
Mechanized green cane harvest
Mechanized green cane harvest
57
70
Copersucar initiatives
crop year 2010/2011, the TAC consumed 41,343 GJ
of electricity, compared with 33,844 GJ in the crop
year 2011/2012. [EN4 C]
The Copersucar office consumed 1,696 gigajoules
(GJ) of energy from hydroelectric sources supplied
by a utility during the crop year 2010/2011, and practically the same quantity, 1,674 GJ, in the following
year. [EN4 C]
The electricity consumed at the TAC is also from
hydroelectric sources provided by utilities, as determined by the Santos Port authority Codesp. In the
In terms of direct energy, during the crop year
2010/2011, the Copersucar office consumed 3,056
GJ, of which 3,032 GJ corresponded to the ethanol
used by its vehicle fleet. The TAC and the office
have diesel generators to ensure continuity in the
event of power outages; consumption of this fuel is
insignificant. [EN3 C]
Energy consumption – Copersucar [EN3 C]
Office
Non renewable energy (GJ)
TAC
Crop year
2010/2011
Crop year
2011/2012
Crop year
2010/2011
Crop year
2011/2012
Diesel oil
23.16
22.40
7.87
7.87
Subtotal
23.16
22.40
7.87
7.87
Ethanol
3,032.64
2,925.00
0
0
Subtotal
3,032.64
2,925.00
0
0
Total Direct Energy Consumed
3,055.80
2,947.40
7.87
7.87
Renewable energy (GJ)
Copersucar S.A.
81
The terminal has a dust removal system which filters the sugar particle emissions that occur during
unloading operations, preventing their release into
the atmosphere. The process also prevents losses,
since the filtered material is cleaned and returned
to stock.
Green IT - energy
The major part of the Company’s IT environment
was migrated to virtual servers, a system whereby
a more powerful server substitutes a number of others. The alterations economize energy and air-conditioning, since the new servers use 91% less energy and occupy 98% less physical space than the
previous platform.
Initiatives at the Partner Mills
For the crop year 2010/2011, the TAC had set a maximum consumption target of 2.79 kilowatts-hour
(kWh) per metric ton of sugar loaded at the terminal. Due to the volumes shipped, effective operational scheduling (leading to less equipment down
time), efficient preventive and predictive maintenance and ongoing work to raise employee and
third-party awareness, the target was exceeded,
resulting in a consumption of 2.50 kWh per metric
ton shipped. During the harvest, electricity savings
totaled 4,341 GJ, an 11.06% reduction compared
with the previous year. [EN5 C]
82
At the Partner Mills, sugarcane bagasse
is the main energy source, accounting for
almost all the energy consumed.
Currently, all the partner sugar mills and distilleries
are self-sufficient in electrical energy. A number
invested in optimizing their thermal balance and
modernizing boilers, resulting in higher energy surpluses. Additional investments in steam turbines
and turbo-generators enabled the implantation of
energy co-generation programs.
However, with the implementation of a process that
adds molasses or liquid sugar to the product, in the
crop year 2011/2012 the established maximum target of 2.45 kWh per metric ton of sugar loaded was
raised to 2.81 kWh, reflecting a 12.6% increase in
energy consumption. [EN5 C, EN6 C]
Considering the total energy generated by all the
respondents (35 in the crop year 2010/2011 and 39
in the crop year 2011/2012), 50% of this total was
consumed internally and the rest was commercialized. In the intercrop periods, the mills used energy
purchased from utilities for routine administrative
and maintenance activities.
During this period Copersucar acquired electronic
light bulbs, which offer improved illumination and
reduced energy consumption. [EN5 C]
The Buriti mill was the first unit of the Pedra
group to commercialize its surplus electricity generated from sugarcane bagasse, after forming a
Indirect energy consumption [EN4 U]
Consumption (GJ)
Type of energy
Total electrical energy consumed
Electrical energy generated (co-generation)
Electrical energy imported (bought from utility)
Electrical energy imported (co-generated bought from other company)
Electrical energy sold (co-generation)
partnership with the power utility CPFL
Renováveis in 2010.
In the crop year 2011/2012, with the same quantity
of cane crushed as in the previous year, Buriti almost doubled the energy it generated to 169,657
GJ, commercializing the surplus of 48,300 GJ.
Work was begun on increasing co-generation capac-
Crop year
2010/2011
Crop year
2011/2012
5,557,160
5,801,421
10,552,212
10,601,529
206,549
258,112
0
0
5,200,643
5,058,279
ity in April 2010, with the replacement of the boiler
and construction of a power station, connection and
an electricity substation. Energy sales were initiated in October 2011. This renewable energy benefits more than 125 thousand people in nine municipal districts: Buritizal, Jeriquara, Ituverava,
Miguelópolis, Igarapava, Pedregulho, Brejo Alegre,
Aramina and Rifaina.
Partner Mills - Direct energy consumption (GJ) [EN3 U]
Non-renewable
2010/2011
2011/2012
Renewable
2010/2011
2011/2012
Diesel
7,195.574
7,878,449
Bagasse*
189,947,587
183,533,738
LPG
1,044.488
2,693,870
Ethanol
173,480
220,460
23,480
30,262
0
0
Aviation gasoline
2,311
2,536
Timber
32,785
41,598
Natural Gas
0.05
0.06
TOTAL
190,153,852
183,795,796
28,628
13,957
8,294,481
10,619,074
Gasoline
Aviation kerosene
TOTAL
Biodiesel
* bagasse conversion data: 2011 National Energy Balance
Breakdown of direct energy sources [EN3 U]
Type of energy
Non Renewable
Renewable
Total
Crop year 2010/2011
Crop year 2011/2012
Total (GJ)
Percentage of total
Total (GJ)
Percentage of total
8,294,481
4%
10,619,074
5%
190,153,852
96%
183,795,796
95%
198,448,333
100%
194,414,870
100%
Copersucar S.A.
83
The amount of surplus energy generated by the
mills in the reporting period meets the needs
of 1,424,850 people, based on Brazil’s annual
per capita consumption of 2000 kWh (Ortega,
F., 2003).
Energy Co-generation – Partner Mills
Cogenerated
energy sold (kWh)
Crop year
2010/2011
Crop year
2011/2012
1,444,622,931
1,405,077,513
Sector context
The cultivation of sugarcane impacts local biodiversity because it occupies extensive areas of land. One
of the main issues is the occupation of Permanent
Preservation Areas (PPAs). These preservation areas include hill tops, slopes and river banks, matters
addressed in the country’s new Forestry Code. Copersucar supports the sector association UNICA’s
positioning on this question.
Foto: Cesar Medolago/UNESP
GJ to kWh conversion factor: 277.8 kWh
5.6. Conserving resources
and biodiversity
Ocelot in preserved woodland at Partner Mill
84
With respect to impacts on water resources, in addition to the occupation of areas close to springs,
there are risks of contamination due to the use of
chemical products and water withdrawal for irrigation beyond permitted limits. In the state of São
Paulo, the sugar-energy sector has been reducing
average water withdrawal levels in consequence of
the state Sugar-Energy Sector Agro-Environmental
Protocol. In the 1990s, average consumption was
around 5 cubic meters per metric ton of cane processed; currently the average for signatories of the
Agro-Environmental Protocol is 1.45 cubic meters
of water per metric ton.
Reclamation and conservation
An important question for the sugar-energy
sector, Copersucar prioritizes sharing
knowledge, increasing awareness and
encouraging compliance with environmental
legislation.
Cultivation in areas in which flora and fauna may be
jeopardized is a critical issue in the sugar-energy
sector and is increasingly attracting the scrutiny of
customers, in particular from overseas. The areas
occupied by the Company’s administrative office
and the Copersucar Sugar Terminal (TAC) are located in urban zones, not causing direct impacts on
biodiversity. Since it does not generate significant
impacts, the Copersucar head office did not incur
expenditures in the crop year 2010/2011. There were
no cases of environment-related fines or non-monetary sanctions involving the Company in the crop
years 2010/2011 and 2011/2012. [EN28 C]
In general terms, at all the Partner Mills strategies
and measures to manage impacts on biodiversity
have been influenced by national regulations. The
mills have programs to reclaim and maintain their
permanent preservation areas, to map environmental impacts, to monitor fauna, to implement
environmental education programs, and to create
native seedling nurseries to reconstitute the original flora, driven both by regulations and voluntary
initiatives. [EN14 U]
The workshop organized on this subject in 2011
was given by a specialist and addressed the sector’s main impacts on biodiversity, monitoring
methods, relevant legislation, the definition of
preservation areas, ways of reclaiming degraded
areas and the average cost of reclamation initiatives. Based on the information reported by the
Partner Mills in the crop years 2010/2011 and
2011/2012, Copersucar expects to draft action
plans for the coming years and implement initiatives to drive knowledge and practical perceptions on this relevant theme.
Managing biodiversity
[EN12 U, EN14 U]
One of the sector’s main impacts is burning, which
occurs during the sugarcane harvest and harms
native flora and fauna. The Sugar-Energy Sector
Agro-Environmental Protocol established the gradual elimination of this method and the adoption of
more responsible biodiversity-related practices,
such as soil conservation, protection of water
sources and the reclamation of riverside vegetation. 98% of the Partner Mills follow the protocol,
entitling them to the Etanol Verde (Green Ethanol)
certificate, which is renewed annually, while a number have gone beyond requirements related to the
reduction in burning.
The Batatais group initiated environmental adjustment programs in its agricultural areas. Developed
in partnership with the University of São Paulo’s
Esalq School of Agriculture (Escola Superior de Agricultura Luiz de Queiroz), the programs are aimed
at conserving, restoring and ensuring the correct
management of natural formations in protection
Copersucar S.A.
85
areas, degraded areas and areas of environmental
interest. On-site assessments are carried out to
monitor biodiversity. The Batatais mill mapped
1,105 hectares of its 280 agricultural properties
and established an 11-year program whereby 112
hectares will be reclaimed per year and 200 thousand seedlings will be planted. The program, begun during the crop year 2007/2008, is now in its
sixth year.
The Lins mill mapped 1,414 hectares on 194 agricultural properties. Its reclamation initiative has
a timeframe of 10 years (120 hectares/year, with
the planting of 200 thousand seedlings). The program was initiated in the crop year 2009/2010.
The agricultural area of the Santa Adélia mill in
Jaboticabal does not have protected areas or
high biodiversity content. Even so, erosion
caused by the renewal of the sugarcane plantations and the effect on water resources are minimized by terracing, the maintenance of vegetable coverage with sugarcane straw, as well as
crop rotation. In the crop year 2011/2012, 4,260
seedlings were planted and a further 7,445 were
monitored as part of a process to restore riverside vegetation. For cane suppliers’ agricultural
areas, there is a program to foment the implantation and reclamation of protected areas by
means of the Environmental Reference Guide
( Guia de Referência Ambiental ), a publication
dedicated to driving sustainable production
practices.
Permanent Protection Areas
[EN13 U]
In the crop year 2010/2011, 32 Partner Mills had a
total of 42,341 hectares of land in permanent protection areas or PPAs. Of these, 15,678 hectares had
already been restored and another 11,543 hectares
were scheduled for restoration; the remainder con-
86
sists of areas that have already been preserved or
that will undergo natural regeneration.
In the crop year 2011/2012, 35 mills had a total of
43,548 hectares of PPAs, of which around 10,271
had already been restored and 8,636 were awaiting
restoration.
The mills’ restoration measures and results were
approved by external specialists and organizations
such as the São Paulo environmental agency Cetesb, the Ecology and Forestry Restoration Laboratory (Lerf/Esalq) and governmental Environment
departments. They were also based on programs
such as the Green Ethanol Project and the Green
Protocol Program.
The Santo Antônio mill formed a partnership with
Embrapa (Brazilian Agricultural and Livestock Research Company) to perform a diagnosis on its
planted areas. The São José mill has a nursery
which produces 40 thousand seedlings per year.
These are used in the reclamation of protection areas, springs and green areas, and are also donated
to third parties. In 2011, the mill adopted 10 springs
in the district of Novo Horizonte, and is reclaiming
the flora in the surrounding areas in line with state
Environment Department guidelines. It has also adopted other green areas in the district, in which it
plants and monitors trees. Six mills – Batatais, Lins,
Pedra, Ibirá, Ipê, Buriti – are engaged in partnerships with Lerf/Esalq to restore permanent protection areas.
The protected areas at the Partner Mills include
land belonging to the mills and leased land. In some
cases they include land belonging to sugarcane suppliers. A number of mills neither manage the protected areas on leased land nor audit compliance
with legal requirements, merely informing the owners of their legal obligations with respect to environmental legislation.
As an example of integrated value chain management, the Cerradão mill in Frutal (Minas Gerais) has
its Native Cerrado Program aimed at the reforestation of 93 hectares of protection areas and legal
reserves belonging to the mill shareholders and
cane suppliers.
In 2011/2012, the Iacanga mill started work on implanting three ecological corridors in areas belonging to its cane suppliers. Geographic Information System (GIS) techniques were used to
demarcate the ecological corridors and connect-
ing areas prior to determining the number of
seedlings to be planted via nucleation techniques
and natural generation. The planting, monitoring
and preservation of the reclaimed areas are undertaken by the mill’s technical team. This project
was made possible by the engagement of the
mill’s suppliers, who authorized the reclamation
measures on their properties. The three corridors
form an area of 12 hectares in which approximately 7 thousand seedlings will be planted. The reclamation process was begun in 2012 and should
be concluded in 2014.
Forestry management at Partner Mill
Copersucar S.A.
87
Data on existing and recoverable protection areas may be audited by the state Environment
Department. This body monitors the Agro-Environmental Protocol action plan, accompanying
reclamation and riverside vegetation rehabilitation measures.
Other impacts [EN12 U]
Agricultural activity may also damage the soil
and water resources, examples being erosion
caused by compacted soil and the silting up of
water bodies. The mills mitigate impacts on water by delineating contour lines, building containment basins, reclaiming and reforesting riverbanks. The techniques used to protect the soil
include the application of sugarcane straw to
cover the soil and crop rotation.
Heavy vehicles involved in sugarcane transportation constitute another problem in terms of biodiversity, with cases of typical animal species
from the producer regions being run over. To
mitigate this problem, some Partner Mills have
developed environmental education programs to
instruct drivers and machine operators on how
to preserve flora and fauna. The São Manoel created its ‘Don’t Step on Me’ campaign to encourage employees not to enter sugar plantations in
heavy vehicles. This initiative reduces soil compaction and damage to the ratoons, resulting in
greater productivity and helping preserve the
plantation.
Resource Management
Water management in sugar and ethanol industrialization processes is a material theme for
Copersucar. The Company promoted a workshop
for Partner Mill representatives in November
2011 to address questions such as environmental
legislation, critical issues, forms of intervention
and best practices for preventing water losses
and increasing reuse.
Crop rotation
Crop rotation helps conserve the soil. It occurs after every planting cycle, on average after five
harvests, in cane renewal areas. Crop rotation offers the producer agricultural, economic and
social benefits, such as: economy in renewal of cane plantation; soil conservation due to maintenance of coverage; weed control; indirect pest control; increased cane productivity; food
production.
Some Partner Mills permit third-parties to grow other crops in these areas during the rotation period.
Other mills plant and commercialize their own crops.
Accompanied by Copersucar, in the crop year 2010/2011, 12,568 hectares were used to rotate
crops. The major part of this total (10,968 hectares) was used to grow peanuts, soy and corn.
The remainder was used to cultivate the shrub crotalaria, used as a green fertilizer. In the crop
year 2011/2012, crop rotation occupied an area of 29,059 hectares, used for soy, corn and peanuts. The Santa Maria mill planted 550 hectares of soy in the last two crop years. At the Cerradão mill, 2 thousand hectares were planted with peanuts and soy; the production was sold to
processors.
88
The Partner Mills who reported on water withdrawal in the crop year 2010/2011 all had permits to withdraw water from rivers and streams
from the appropriate authorities and did not
report any significant impacts on sources. In
the following crop year, all were compliant with
established limits.
With respect to the location of withdrawal points,
20 mills are located more than 10 kilometers from
the surrounding conservation units; a total of 63
withdrawal sources are involved. [EN9 U]
Not all the mills use meters to measure the volume
of water withdrawn. Some use estimates for purposes of monitoring while they prepare to implant
more accurate control processes.
As examples of advanced water management
practices, during this period six Copersucar
Partner Mills had closed water circuits. This is
the case with the Santa Maria mill, which has a
closed water circuit for its sugar manufacturing
processes and monitors the volume of water
withdrawn from surface sources on a daily basis. The Santa Lúcia mill has a closed water
circuit and performs a water balance, achieving
an average consumption of 0.85 m 3/TC during
the reporting period. According to the São
Paulo Environment Department’s Etanol Verde
(Green Ethanol) program, average consumption
Water withdrawal by source (m3) [EN8 U]
Crop year
2010/2011
Crop year
2011/2012
393,607
281,262
15,203
15,000
Ground
7,669,530
18,155,958
Surface
134,856,364
134,473,657
Total
142.934.704
152,925,877
Source
Utility
Rainwater
among signatories of the Agro-Environmental
Protocol is 1.45 m 3/TC. [EN9 U]
None of the units directly collect treated wastewater from other companies. [EN8 U]
Focused on reducing water withdrawal/consumption, the São Manoel mill uses consolidated mechanisms, such as closed water cooling circuits (towers), the elimination of water in cane washing, heat
regenerators in the juice treatment area, the use
of partially cooled condensates, as well as the reuse of residues from anaerobic processes. Water
consumption at the São Manoel in the last two
crop years was 0.86 m3/TC. At the end of the crop
year 2009/2010, the mill implanted a closed water
circuit at its sugar production plant and, during the
last two crop years, reduced its water withdrawal
by 50%. The mill will implant the same process in
its ethanol plant. [EN8 U]
At the 35 mills reporting data, the closure of industrial circuits results in an average water reuse
rate of 81% compared with the volume withdrawn,
which means a significant reduction in impacts. On
average, the volume of water which is no longer
withdrawn equals almost five times the volume
actually consumed. At the Monções mill, for example, which conducts a water balance, the water
reuse rate is 90%. [EN10 U]
Since the crop year 2008/2009, the São José da
Estiva mill has used a dry cleaning system for
crushed cane, substituting the use of water. Blowers near the cane reception conveyor separate
the cane from the straw, which is used to fuel the
boiler; the rinsed earth generates wastewater
which is passed through a closed water system,
significantly reducing consumption of the liquid.
According to the mill’s water balance, in the past
50m3 of water were necessary to wash around
630 metric tons of cane. With the dry cleaning
Copersucar S.A.
89
Total water recycled /reused (m3) [EN10 U]
Type of water
Crop year 2010/2011
Crop year 2011/2012
840,554,502
1,263,082,487
140,027,326
134,605,048
698,528,855
1,014,514,952
83%
80%
Water required in production process
New water (withdrawn) for production process
Total water reused
Percentage of recycled / reused water
process, the current withdrawal rate is 10 m3 per
hour, representing an 80% reduction. Another
advantage was a 40% reduction in wastewater
generation. All the mill’s water circuits have been
closed since 1995, and surface water withdrawal
has been reduced by 90%. The environmental
authority Cetesb used the São José da Estiva mill
dry cleaning process as an example in a report on
cleaner production and sustainable consumption
measures in October 2011.
The TAC effluent generation target was to not
exceed 0.09 liters of effluent per metric ton of
sugar shipped. In 2010/2011, the result was well
below the ceiling at only 0.02 liters of effluent per
metric ton, a figure which was maintained the following year. These rates were obtained due to the
increase in dry cleaning procedures in the terminal and more efficient planning by the teams responsible. Daily dialogs and talks also reinforced
employee awareness of the need to reduce water
consumption.
Efficient management
In the crop year 2010/2011, the Copersucar Sugar
Terminal consumed 23,117 m3 of water provided
by utilities. The terminal has annual water consumption and effluent generation reduction targets. For water, it was established that consumption for all terminal processes should not exceed
5.19 liters per metric ton shipped (or a 2% reduction for each crop year). This target was fulfilled
in the crop year 2010/2011, with a 5.03% decrease.
Total consumption in the following crop year was
19,441 m3, representing a 16% decrease. Neither
the terminal nor the Copersucar office harvest
rain water, using only treated water from utilities.
[EN8 C]
At the Copersucar head office, total water consumption was 4,171 m3 in the crop year 2010/2011 and
3,500 m3 the following year. [EN8 C]
90
All the water used by the Copersucar office is subject to conventional domestic sewage treatment
by a utility. This wastewater is not used by other
organizations, being channeled directly for treatment. In the crop year 2010/2011, the effluents
generated totaled 4,171 m3 compared with 3,255
m3 the following crop year. In the office, the bathrooms are equipped with flow control valves and
tanks to reduce and standardize the volume of
water used. [EN21 C]
During the crop year 2010/2011, the TAC generated two types of effluent. The most significant
was the wastewater from washing the warehouses and patios, generating 84m3 in the crop year
2010/2011 and 60m3 in the crop year 2011/2012.
This was treated at the São Paulo water authority Sabesp’s Piqueri sewage treatment center. The
remainder, from bathrooms, cloakrooms, canteens and other sources was disposed of in the
Codesp sewage network. [EN21 C]
Material consumption
In the crop year 2010/2011, the Copersucar head
office consumed 540 batteries, 116 ink cartridges
and 550 liters of lubricating oil. Consumption at
the TAC was 473 batteries and 720 liters of oil. At
both units, the waste is disposed of in accordance
with regulations. [EN1 C]
The head office established a 2% reduction target
for bond paper and ink. Ink consumption decreased by 20%. The target for bond paper, however, was not reached. A series of factors contributed to this, including the generation of more
printed documentation; the implantation of new
projects involving intensive documentation; the
presence of external consultancies and an increase in the volume of reports stemming from
the implantation of new procedures. The reduction target remains in place for the next reporting
period, with the adoption of engagement and
monitoring measures. The figures for the reduction target are based on the volumes acquired for
stock replacement, obtained from the entries in
SAP, the Company’s business management software platform.
Bagasse storage at Partner Mill
Materials used by source and quantity [EN1 C]
2010/20011
Source
Renewable
Non renewable
Material
Unit
Bond paper
2011/2012
Office
TAC
Office
TAC
Ton
7.8
5.1
8.9
3.1
Kraft paper
ton
0.1
8.6
0.0
5.2
Plastic
ton
3.6
6.6
3.4
4.2
Grease
ton
0.0
0.6
0.0
1.1
Lubricating oil
liters
550
720
550
1000
Batteries
unit
540
473
680
272
Ink cartridges
unit
116
-
93
-
Copersucar S.A.
91
5.7. Human rights and the
value chain
Sector context
Precarious working conditions and forced or slave
labor are critical issues upon which the sector has
been working in an increasingly systematic and
significant manner. One of the first initiatives was
Brazil’s National Pact for the Eradication of Slave
Labor, created by the Instituto Ethos, the International Labor Organization (ILO), the Instituto Observatório Social and the NGO Repórter Brasil in
2003. Another is the National Plan for the Prevention and Eradication of Child Labor and Protection of Adolescent Laborers, created in 2004
under the coordination of the Ministry of Labor
and Employment (MTE).
A specific initiative in the sugar-energy sector
was the National Commitment to Improve Working Conditions in Sugarcane, created in 2009
based on a three-way negotiation involving the
federal government, sector and labor representatives. This commitment is aimed at disseminating
best practices.
According to the Ministry of Labor and Employment inspectorate area and Labor Public Prosecution authorities (MPT), from 2003 to 2010,
more than 10 thousand workers were emancipated from conditions of forced labor in sugarcane plantations nationwide, representing 29%
of the total number of people released from such
conditions.
Role of inducer
As a sugar and ethanol trading operation, Copersucar is not at high risk of human rights violations. In the Copersucar office in São Paulo and
the Copersucar Sugar Terminal (TAC) in the port
92
of Santos (São Paulo), the activities performed by
employees are fully compliant with Brazilian labor
legislation. No cases of child, forced or slave labor
were identified in the reporting period. There are
also no limitations to the exercise of freedom of
association. The Company supports its employees’ right to freedom of association. TAC Employees are represented by the union Sindogeesp,
while those in the head office are represented by
SECSP. Collective agreements are in place both
in the head office and the Copersucar Sugar Terminal. [HR5 C, HR6 C, HR7 C]
To prevent human rights violations all workers are
hired in accordance with Brazil’s CLT labor regime
and child labor is strictly forbidden. Third-party
labor is also in compliance with specific legislation. In the crop year 2010/2011, 57% of the Copersucar head office employees (115 people) and
13% of the TAC (42) employee body were trained
in human rights-related policies and procedures.
The training totaled 471 hours, with an average of
three hours per employee. In the following crop
year, 100% of the office and TAC employees undertook this training, with a total of 595 hours
training for the office and 945 hours for the TAC.
[HR3 C, HR6 C, HR7 C]
Ethical conduct is also a marked feature of the Company’s relations with employees. During the reporting period no cases of discrimination were identified, either in the office or the TAC. No formal
complaints were received through the established
communication channel. [HR4 C]
Copersucar sees itself as an inducer of the principles of social responsibility. Although the mills
have the autonomy to run their businesses and
choose their sugarcane suppliers, the Company
makes every effort to ensure legal compliance
and the application of best practices as a means
of guaranteeing the origin of the products it
Training for agricultural machinery operation at Partner Mill
commercializes. Copersucar’s Code of Business
Conduct includes a clause explicitly stating that
the Company will not tolerate child, slave or
forced labor [HR6C, HR7C]. 95% of Copersucar
S.A. contracts with suppliers contain human
rights clauses. There is no formal process for
verifying compliance with these clauses. In the
event of breach of contractual requirements,
services will be interrupted. No cases of breach
of contract were recorded during the reporting
period. [HR1 C]
Main challenges
A critical issue related to human rights violations in
the sector is the hiring of migrant labor for the sugarcane harvest. At times this type of employment
is informal, creating conditions in which forced labor may occur. [HR7 U]
In the state of São Paulo, 41 of the 42 Partner Mills
are signatories to the state Sugar-Energy Environmental Protocol, a voluntary agreement between
Copersucar S.A.
93
Partner Mill employees in classroom
the state Environment Department, the state Agriculture Department and the sector association
UNICA (União da Indústria de Cana-de-Açúcar).
The mechanization provided for in the protocol
acts as a strong driver of decreased human rights
violations on sugarcane plantations, due to the
reduction in manpower necessary for the cane
harvest. [HR6 U, HR7 U]
In cane supply, the risk of the occurrence of slave
and child labor increases where cane is supplied by
third-parties, due to difficulties in monitoring the
chain. To preclude this risk, in the crop year
2010/2011, 16 Partner Mills included specific clauses
in their supply contracts stipulating termination in
the event of breach. Twelve Partner Mills did not
94
include such clauses but employed other ways of
assessing working conditions at their suppliers. In
the crop year 2011/2012, of the 38 respondent mills,
16 had such clauses. 19 mills did not include the
clauses but assessed their suppliers in other ways,
such as via internal audits. For example, at the Jacarezinho mill, 100% of the contracts with cane suppliers contain human rights clauses. There is no
record of this type of violation during the reporting
period. In mills such as Quatá, where all the cane
comes from the unit’s own property, there are no
contracts of this nature. [HR2 U]
With respect to cane planting and cutting operations, during the crop year 2010/2011 seven Partner Mills had human rights clauses in their con-
tracts and eight did not; 12 mills used their own
manpower and therefore did not contract externally. In the crop year 2011/2012, 16 mills used
their own manpower for this work, 15 did not
have contracts and seven included human rights
clauses in all their contracts. These were: Batatais, Lins, Pedra, Buriti, Ibirá, Ipê and Umoe – Sandovalina. [HR2 U]
The São Luiz mill created a self-assessment system
whereby the suppliers themselves check whether
they are in compliance with cane purchase contract
clauses related to occupational health and safety
and child and slave labor.
The Zilor mills have a Term of Socio-Environmental
Conduct aimed at mitigating the risk of forced and
child labor in the supply chain. [HR6 U, HR7 U]
Of the remaining Partner Mills, 16 have clauses
on child and forced labor. The Pioneiros, VO –
Catanduva, VO – José Bonifácio, VO – Itapira and
VO – Monções mills opt not to outsource manual
cane cutting with the objective of preventing
child and forced labor. The Pioneiros mill and
four units of the Pedra group are participants in
the Fundação Abrinq Child Friendly Company
program, which campaigns against the use of
child labor. [HR6 U, HR7 U]
The Partner Mills ensure their employees’ rights
to freedom of association and collective bargaining. This involves direct dialog between the mills
and the union representatives in their work forces. The mills also disseminate union information
and newsletters on their notice boards and issue
specific reports included on the payroll. The
units only participate in collective bargaining
related directly to their business activity and the
categories to which their employees are associated. All the employees are represented by
unions. [HR5 U]
52% of the 48 Partner Mills are signatories of the
National Commitment to Improve Working Conditions in Sugarcane, a positioning which Copersucar
fully supports.
According to Funai, Brazil’s National Indian Foundation, there are 17 indigenous areas in São Paulo, 21
in Paraná and six in Minas Gerais. None of them are
located in the municipal districts in which the Partner Mills operate. [HR9 U]
The Code of Business Conduct states that:
Copersucar does not tolerate the use of illegal child labor, of slave or forced labor in
the entire business chain and strives, in its
relationships, companies that share these
value.
Contracts and monitoring
At Copersucar, 95% of the contracts with suppliers
considered to be significant because of the scope,
term or value of the services contain human rights
clauses as part of the Copersucar general clauses.
Suppliers who do not accept these terms are at risk
of no longer working with the Company. During the
reporting period, no supplier contract was turned
down as a result of non-compliance with standards.
[HR2 C]
Although Copersucar does not conduct audits to
verify compliance with such clauses, it maintains
close relations with suppliers based on trust and
common values and principles. Even closer attention is paid to contracts with the Partner
Mills, non-partner mills and logistics services
suppliers, which include a formal term of acceptance of Copersucar’s Code of Business Conduct.
The Partner Mills are expected to provide periodic reports on socio-environmental performance indicators.
Copersucar S.A.
95
Respect for people
Growing together
Human resources management is a
key element in the Company’s sustainable
development agenda.
Copersucar has increased its focus on people management, which is a key priority for senior management. In the crop year 2010/2011, the Company instituted a Development Committee, which analyzes
the Company and teams organization from the perspective of succession planning.
As a large trading operation, Copersucar has a
lean workforce focused on commercialization
and logistics management. For this reason, it
seeks to maintain a high level of professional
qualification and invests systematically in the
development of employee competencies to ensure operational efficiency in its domestic and
international operations.
The Company ended the 2010/2011 with 503 employees, 201 of which located at the São Paulo
head office and 302 at the Copersucar Sugar
Terminal (TAC) in Santos. In the crop year
2011/2012, there were 517 employees, 193 at the
head office and 324 at the TAC. All the Copersucar and TAC employees have permanent work
Turnover rate by gender in the office
[LA2 C]
96
The employees at the other terminals are not counted because they are outsourced. Company human
resources policy does not apply to these workers.
However, it is stipulated in contract that they must
be qualified to perform the functions expected of
them and must have access to the Company information necessary to ensure alignment with business requirements.
The office had an employee turnover rate of
1.43% in the crop year 2010/2011, with 24 discharges and 42 admissions. The rate at the TAC
was 2%, with 66 discharges and 88 admissions.
In the following crop year, the office turnover rate
was 1.46%, with 39 discharges and 33 admissions;
at the TAC it was 1.43%, with 60 discharges and
56 admissions (additional information in the following tables). [LA2 C]
Turnover rate by gender in the TAC
[LA2 C]
Crop year
2010/2011
Crop year
2011/2012
Male
1.3%
1.4%
Female
1.7%
1.6%
Gender
contracts under the terms of Brazilian CLT labor
legislation, which include collective bargaining
agreements. There are no seasonal variations in
headcount in either operation. Temporary work
contracts are used only to substitute employees
on vacation or on leave for a period of up to 90
days or to handle extraordinary increases in
work load. In the event of important operational
changes, all employees receive prior notice of on
average four weeks, even when this is not stipulated in collective agreements. [LA1 C, LA4 C,
LA5 C]
Crop year
2010/2011
Crop year
2011/2012
Male
2.0%
1.3%
Female
1.0%
2.3%
Gender
Employees leaving employment in office, by age group [LA2 C]
Age group
Absolute number
% by age group
Crop year 2010/2011 Crop year 2011/2012 Crop year 2010/2011 Crop year 2011/2012
Under 30 years
6
10
16%
17%
Between 30 and 50 years
16
21
14%
13%
Over 50 years
2
8
5%
21%
Employees leaving employment in TAC, by age group [LA2 C]
Age Group
Absolute number
% by age group
Under 30 years
30
19
32%
18%
Between 30 and 50 years
33
40
14%
20%
3
1
15%
5%
Over 50 years
Employees leaving employment, by region [LA2 C]
Region
Absolute number
% by region
São Paulo
24
39
13,0%
20,0%
Santos (TAC)
66
60
20,4%
18,5%
Employees leaving employment, by gender [LA2 C]
Absolute number
Crop year 2010/2011
Gender
Crop year 2011/2012
Women
Men
Women
Men
12
12
12
27
TAC
1
65
0
60
Total
13
77
12
87
Copersucar
During the crop year 2010/2011, there were 51,290
permanent employees at the Partner Mills, of which
51,244 were full-time and 46 part-time; there were
also 3,559 temporary workers. In the following crop
year, the total number of permanent employees in
the mills rose to 56,708, 56.658 of which were fulltime and 50 part-time, plus 5,697 temporary workers. All the employees are covered by collective
bargaining agreements, both in the agricultural and
industrial areas. Most of the mills as a practice hire
employees that live in the same municipal district.
Approximately 50% of them have seasonal variations in employment levels. For example, the Santa
Adélia Jaboticabal mill had 2,209 employees during
the crop year 2010/2011 and 1,165 employees in the
intercrop period. [LA1 U, LA4 U]
Copersucar S.A.
97
Agricultural machinery operator at Partner Mill
Diversity
Copersucar strives to promote diversity in the
work environment. This is incorporated into the
Company’s Code of Business Conduct, which promulgates the principles of equality of opportunity and non-discrimination of employees based
on race, color, age, sex or religion. Even though
there is a predominance of men at all levels and
categories, the increase in the hiring of women
for different functions witnessed in the crop year
2009/2010 has been maintained and amplified
to include leadership positions. As part of the
non-discrimination policy, there are no differ-
ences between the salaries paid to men and
women exercising the same function at all job
levels. [LA14 C]
In the crop year 2010/2011, there were 68 women
and 133 men working at the Copersucar office in São
Paulo and 8 women and 294 men at the TAC. In the
following crop year, the number of women in the
office increased to 71, while the number of men decreased to 122; at the TAC, the headcount increased
to 10 women and 314 men.
The Company has fully met the legal quotas stipulated for employing disabled professionals.
Diversity and the disabled [LA13 C]
Crop year 2010/2011
Copersucar – head office
TAC
98
Crop year 2011/2012
Black
Disabled
Black
Disabled
4
2
4
4
27
4
24
10
Employee breakdown by gender [LA13 C]
Crop year 2010/2011
Copersucar - head office
TAC
Crop year 2011/2012
Men
Women
Total
Men
Women
Total
66%
34%
100%
63%
37%
100%
97.5%
2.5%
100%
97%
3%
100%
TAC employees by gender and age group [LA13 C]
Crop year 2010/2011
Age group
Women
Men
Total
Under 30
1
93
94
Between 30 and 50
6
179
185
Over 50
1
22
23
Total
8
294
302
Women
Men
Total
Under 30
1
87
88
Between 30 and 50
8
203
211
Over 50
1
24
25
10
314
324
Women
Men
Total
Under 30
13
26
39
Between 30 and 50
46
76
122
9
31
40
68
133
201
Women
Men
Total
Under 30
13
16
29
Between 30 and 50
46
74
120
Over 50
12
32
44
Total
71
122
193
Crop year 2011/2012
Age group
Total
Copersucar head office employees by gender and age group [LA13 C]
Crop year 2010/2011
Age group
Over 50
Total
Crop year 2011/2012
Age group
Copersucar S.A.
99
Salaries and benefits
Copersucar seeks to pay its employees salaries
compatible with the market and in accordance
with specific characteristics of the São Paulo
and Santos regions, the municipal districts in
which it operates. In the crop year 2010/2011, the
lowest salary for Copersucar employees in the
head office and the TAC was BRL 1,022.30, 87.6%
above the national minimum salary at that time
(BRL 545.00). In the crop year 2011/2012, the
lowest salary of BRL 1,090,00 was 75.5% higher
than the national minimum salary of BRL 622,00.
[EC5 C]
At the Partner Mills, in the crop year 2010/2011 the
average lowest salary paid by the mills was equivalent to 113% of the national minimum salary of BRL
545,00. For the mills that used the São Paulo minimum salary, it was 109%. In the following crop year,
all the mills used the national minimum salary of
BRL 622 (January 2011) as a reference. The lowest
salary paid was BRL 676, corresponding to 108.7%
of the minimum. [EC5 U]
For head office and TAC employees, Copersucar
provides a series of benefits comprising meal
vouchers, private pension plan, life insurance, health
plan, dental plan, medication subsidies, accident
and invalidity insurance, as well as maternity and
paternity leave as stipulated by law. Temporary
workers are entitled to life insurance and maternity
and paternity leave. [LA3 C]
The private pension plan is voluntary. Copersucar
matches the employee’s contribution, which varies from 1% to 4% based on age and the plan
option chosen by the employee. Employees who
are discharged are entitled to 100% of the
amount deposited by the Company. For employees
who resign, the percentage paid out depends on
length of service: 25% for up to 10 years service,
100
50% between 10 and 20 years and 100% for more
than 20 years. [EC3 C]
In the last two crop years, the only alteration in the
Company benefits policy was the revision of the
costing model for the health plan provided for employees in the São Paulo office. With the co-participation scheme implemented in July 2011, employees are exempt from monthly payments, being
liable for a proportional disbursement only when
they use the plan.
Performance management and variable
remuneration
At Copersucar, all employees have their performance appraised. For management level positions, encompassing directors, managers and
supervisors, there was a 360º assessment during
the crop year 2010/2011; in addition to being appraised, the professionals were asked to appraise
their superiors, peers and subordinates. The other employees participate in the Performance Management Program, which was implanted in
2010/2011. An electronic tool implemented fully
in the crop year 2011/2012 enables managers to
manage their team’s performance more effectively, planning future moves in line with Company strategy. The program offers employees
more structured feedback on their performance
and more detailed development plans. Operators
at the Copersucar Sugar Terminal (TAC) are appraised in accordance with the Company profit
share program (PPR). [LA12 C]
Another advance was the review of the description
of organizational competencies and the updating of
the ways in which employees are appraised. In
2011/2012, the people management department organized meetings to provide employees with a detailed explanation of the assessment and competency development systems.
Copersucar trainees at head office
The Copersucar variable remuneration model is
aligned with the Performance Management program and comes under the scope of the work
done by the Human Resources department. The
plan links overall Company and area targets with
employees’ individual targets, which are incorporated into the Performance Management program. Variable remuneration also comprehends
sustainability-related targets which are interlinked with those of other areas.
Professional development
Copersucar invests constantly in building and improving competencies. In the crop year 2010/2011,
the second group of trainees was recruited to work
in diverse Company departments. A new selection
process was initiated in the first half of 2012, and the
successful candidates will begin work in the second
semester. The retention rate is 60%, and trainees
have the opportunity to reach important positions.
Copersucar S.A.
101
Faced with the need to prepare employees to meet
new challenges and develop management skills, in
the last two crop years the Company focused on
leadership development via its 360° Feedback, Assessment and Coaching programs. Additional programs included internal team development, individual training and courses for forklift drivers at
the TAC. These are complemented by activities
such as the Idea Network and Leader Network. In
the crop year 2010/2011, the average number of
hours training per employee was 52.2 hours for
managers and 42.4 for administrative employees.
For the following crop year the corresponding average numbers of hours training were 25.5 and
21.8 respectively. The total number of hours training was 4,063. [LA10 C]
In the crop year 2011/2012, monitoring of training
load by job type was initiated for both TAC and office employees. Analysts received an average of 25
hours; clerks, 5.9 hours; specialists, 23 hours; directors, 22.7 hours; managers, 22 hours; and leaders,
19 hours. The total number of hours training was
4,424. [LA10 C]
Agricultural machinery operator at Partner Mill
To drive employees’ professional qualification,
Copersucar subsidizes specialized courses and
graduate level degree and non-degree programs
established in individual development plans and
aligned with Company strategy. At the end of the
last two crop years, 17 employees were studying
on specialized courses with Company support.
Copersucar also subsidized language courses for
55 employees in the same period. Additionally,
partnerships are being developed to assist employees in career transition, outplacement and
retirement. [LA11 C]
102
With respect to the Partner Mills, in the crop year
2010/2011 7,007 employees from 25 of the responding mills took part in educational and competency development programs delivered through
internal and external courses or study grants. A
total of BRL 2 million was invested in employee
development, encompassing leadership programs,
training for mechanized harvesting, technical
courses, school, undergraduate and graduate programs. In the following crop year, 17,693 employees
benefited from training programs, involving a total
investment of BRL 5,724,053. The São Manoel mill,
for example, runs regular education, training and
refresher programs designed to promote internal
mobility. It also participates in recruitment and
professional requalification programs in partnership with UNICA and Senai, offering courses to
train employees to become mechanics, electricians
and welders. The mill has a partnership with the
local agricultural union in a literacy course for employees involved in manual cane cutting. Additional programs run by the São Manoel mill include a
Competency and Performance Management program, a program to prepare employees for retirement, in addition to a study grant scheme focused
on technical training. [LA11 U]
In the crop year 2011/2012, the Batatais and Lins
mills invested in leadership and management development with initiatives such as internal training
sessions, seminars, and workshops, benefiting 110
employees. At Lins, in particular, operational supervisors took part in an intercrop training program.
The mills also provided financial support for 61 employees on undergraduate, graduate and specialized
programs and on language courses during the period. Together they organized a trainee program,
technical and behavioral development programs,
and ongoing learning programs, benefiting a large
number of employees. The investment during the
period was approximately BRL 1,500,000.
reality. The project has been in place since 1991 and
has transformed the lives of hundreds of people,
opening up a new world of experience and learning.
Students are also encouraged to use computers and
consolidate their learning with educational and cultural excursions. The project benefited 20 people in
the crop year 2011/2012 and involved an investment
of BRL 10 thousand.
In the crop year 2010/2011, the 51,290 mill employees received 839,950 hours training, an average of
16.3 hours per employee. In the following crop year,
the 56,708 employees received 2,632,319 hours
training, an average of 46.4 hours for each employee. [LA10 U]
Hours training (hours/person-group)
12.9
Administration
12.1
27.7
Management
18.7
The São José da Estiva mill developed a literacy
program called It is Never Late to Educate for individuals with incomplete schooling. The program
benefits employees, family and community members, offering a fully equipped learning environment
and educational material tailored to the students’
Operational
17.9
55.9
n Crop year 2010/2011
n Crop year 2011/2012
Incentives for acquisition of new skills
Since the deadline for eliminating burning was established (2017), the São Paulo Sugar-Energy Sector
Agro-Environmental Protocol has reduced the environmental impacts caused by cane production.
However, in the social sphere incentives for mechanization and the end of manual cutting have increased unemployment among agricultural laborers.
In 2010, UNICA launched the Renewal (RenovAção) program, a series of initiatives to retrain cane cutters
for new functions. In the crop years 2010/2011 and 2011/2012, 26 Partner Mills took part in the program,
training 459 and 454 workers respectively, resulting in the retraining of a total of 913 people.
Copersucar S.A.
103
Community relations
Education and development
The social actions promoted by the Company
and the Partner Mills are aimed at developing
and supporting the local community.
One of the pillars underpinning sustainability at
Copersucar is social responsibility. The Company’s
actions are focused on education and historical
memory projects designed to drive social transformation. Aligned with the Copersucar’s business and values, the projects are concentrated in
the communities in which the Company operates,
such as Santos, Guarujá, São José do Rio Preto,
Ribeirão Preto, and in which the 48 Partner Mills
are located.
Copersucar’s social responsibility actions involve
both direct (donations) and indirect (donations using tax incentive laws) investment. The main incentive laws through which the Company contributes
are the state of São Paulo’s Cultural Action Program
(ProAc in the Portuguese acronym) and Sports Incentive Law (PIE), in addition to the federal Rouanet
cultural incentive law.
The projects in which the Company invests may
originate directly from the proponents or from the
Partner Mills. All social or educational investments
are discussed and approved by Copersucar executive management.
The Communication department is responsible
for analyzing the feasibility of social investments
in conjunction with the Company’s tax department and for developing projects together with
the mills (ProAc and PIE) and with those responsible for the project when it is to be supported
directly by Copersucar S.A. (donations, disbursements, Rouanet law and in some cases where
104
ProAc and PIE incentives are involved). In the
latter case, the Company designates a representative to keep close track of the project activities. The mills are responsible for monitoring
their own projects and for reporting on them to
Copersucar. The tax department provides support for the Communication department in managing these initiatives.
Work in the educational department is focused on
the formation of future generations by concentrating on educational activities for children and adolescents, incorporating notions of sustainability and
vocational training. Another focus is support for
projects involving Brazil’s historical heritage and
cultural development.
The mills are kept informed of the progress of
these initiatives. The Company is accountable for
demonstrating the effectiveness of its social actions in the regions around the Partner Mills, the
head office, and its terminals. Copersucar also encourages and supports the initiatives developed
by the Partner Mills, in keeping with its ongoing
engagement policy.
Target achieved [EC8 C]
In Copersucar’s first Sustainability Report related to the crop year 2009/2010, the Company’s
Commitments to Further Sustainability included
the target of increasing and systematizing investments in line with the strategy of incentives
for education and the preservation of Brazilian
memory. In the two following crop years, the
Company fulfilled these commitments, systematizing control of its investments and increasing
the sums involved.
In the last two crop years, Copersucar’s investments
totaled BRL 12.2 million, including funding for social
projects via ProAc incentives.
Employee housing at Partner Mill
One of the main initiatives Copersucar supports is
the Instituto Ayrton Senna’s (IAS) SuperAção Jovem program, with direct funding of approximately
BRL 750 thousand during the period.
In March 2012 Copersucar started supporting the
Nadando na Frente program, which promotes sports
as an important factor in children’s and adolescents’
development, using PIE funding. In 2012, the project
will benefit around 250 underprivileged children in
the Ribeirão Preto region.
During the last crop years, every October the
Company has organized contests focused on sustainability for employees’ children. In the crop
year 2010/2011, the BiodiversiArte contest was
held in São Paulo and Santos, with workshops
centered on the use of recyclable materials in
works of art. The best models built by the children and their families received prizes. All the
leftover material was donated to an educational
institution.
During the crop year 2011/2012, the children in São
Paulo took part in an educational visit to the Villa
Ambiental in Villa Lobos park, while their Santos
counterparts visited the local maritime museum.
The participants were invited to submit a video
showing how their families had incorporated sustainable practices from the lessons learned. The
Company’s employees voted on the best works,
which were awarded prizes.
Copersucar S.A.
105
Picture: Michele Zollini/Instituto Ayrton Senna
Student benefited by the SuperAção program, of the Ayrton Senna Institute
SuperAção Jovem [EC8 C]
In 2010, Copersucar initiated a partnership with
the Instituto Ayrton Senna, whose actions are
aimed at improving public education. One of
these is the SuperAção Jovem program which
develops cognitive and non-cognitive competencies – such as team work, collaboration, communication and problem solving – with public
school students in the state of São Paulo. The
methodology involves the young people in the
solution of real problems they face in their
schools and communities. Teachers also receive
training on innovative techniques in reading (developing a taste for reading and improving comprehension) and mathematics (logical reasoning
and problem solving) activities.
106
In 2010, 5,020 students and 222 teachers at 45
schools in 38 municipal districts in São Paulo benefited from the program. Due to the positive results, Copersucar increased its sponsorship from
BRL 300 thousand to BRL 600 thousand in the
crop year 2011/2012, when the partnership was extended to 149 schools, reaching 23 thousand students. The program scope was expanded to include
the environment. Novelties included dissemination
of the initiative via social networks and a project
to monitor the development of non-cognitive skills
among participants. The SuperAção Jovem program was highlighted in the United Nations Development Program’s (UNDP) Human Development
Report Brazil 2009/2010 – Values and Human Development, in which its partners, including Copersucar, were mentioned.
Preserving heritage
One of the fronts in Copersucar’s social responsibility actions is the preservation of Brazil’s historical and cultural memory. In 2010, the Company
donated BRL 100 thousand to a project to revitalize Morro de São Bento, a tourist attraction in Ribeirão Preto, where Copersucar has a transshipment terminal. The funding involved ProAc
incentives. The work included the restoration of
sculptures by renowned artists, as well as a landscaping and illumination project, which was concluded in March 2011.
Other initiatives
With its head office located on the city of São Paulo’s most famous avenue, Copersucar contributes
to the Associação Paulista Viva, a civic organization
that has promoted measures to improve safety on
Avenida Paulista since 2003. In the latest crop
years, the Company donated BRL 60 thousand to
the association.
In 2010, the Company also used Rouanet law incentives to sponsor a presentation by the Prague
Symphonic Orchestra in the city of São Paulo.
The proceeds from the concert went to the As-
sociação Autismo e Realidade, dedicated to providing assistance to autistic children and their
families. As one of the official sponsors of the
institution, Copersucar also made a direct donation of BRL 18,700. [EC4 C]
Recognizing the important role played by NGOs
in diverse areas, the Company purchases corporate gifts from such organizations to distribute at
its events.
Partner Mills
To understand the direct and indirect economic
impact they cause in their regions, most of the
mills carry out local surveys and draw on studies
carried out by UNICA and government bodies. The
Santa Adélia - Jaboticabal and Santa Adélia Pereira Barreto mills interview their stakeholders
to establish relevant themes for the company.
These themes are incorporated into the company’s community actions, driving transparency in
relations with the community, local government
and other audiences.
Santa Adélia considers its positive impacts to be
the generation of local jobs; investments in highway infrastructure, facilitating logistics and driv-
A look at the port region [EC8 C]
Since 2011, Copersucar has supported the Associação Pró Esporte e Cultura’s Great Game, Great
Grades (Bom de Nota, Bom de Bola) project in public schools in Santos.
The initiative, backed by the Municipal Education Department, is aimed at improving school performance through sports. Some 500 public school students aged from 13 to 17 are engaged in the program, which began in the 2012 school year. Copersucar donated BRL 334 thousand to the program
via the São Paulo state PIE sports incentive law. [EC4 C]
In December 2011, Copersucar sponsored the Port of Santos Orchestra (Opos), by means of the
Rouanet incentive law. The project is aimed at enabling young talents to study to become professional musicians.
Copersucar S.A.
107
Port of Santos Orchestra (Opos)
ing the economic development of surrounding
towns; the generation of business opportunities
for micro and small businesses, and tax income
for government coffers. Mentioned as a negative
impact, is the decrease in local employment with
the end of burning and the mechanization of the
harvest. [EC9 U]
In general terms, the Partner Mills see their indirect economic impacts as contributing to the
prosperity to the regions in which they operate.
Their presence generates tax income for the municipal districts, such as the ICMS sales tax paid
by the cane suppliers to the state government,
which is then passed on to the municipalities. The
direct and indirect generation of employment promotes income distribution, supports local commerce and services and increases the local Gross
Domestic Product or GDP, driving development in
the community. The mills play a key role in the
municipalities in which they are located because
108
of the jobs and income they generate for the community. An example of this is the Melhoramentos
mill, the biggest employer in the municipal district
of Jussara, Paraná. [EC9 U]
However, the drive to eliminate burning in sugarcane plantations to reduce the sector’s environmental impacts entails mechanization of the
cane harvest, which leads to unemployment
among agricultural workers. To combat this negative impact, the Santa Adélia mill provides agricultural laborers with training to enable them
to find other work either inside or outside the
company. [EC9 U]
The mills also invest in infrastructure works and
community services. Investments during the crop
year 2010/2011 totaled BRL 5.6 million, increasing
to BRL 8.6 million in following crop year. The approximately BRL 900 thousand each invested by
the São Manuel and Santa Lúcia mills is particu-
larly worthy of note. The Santa Lúcia mill has a
small village with 73 houses on its premises in
which employees and their families live. This settlement is complemented by a leisure area, a multipurpose sports court, football field, a bowls or
bocha ground and a function room, as well as a
church, the result of investments undertaken in
the latest crop years. [EC9 U]
In operation for 64 years, the Furlan Santa Bárbara mill also provides some 530 people with 140
homes in eleven settlements, in addition to supplying free water and electricity. In the reporting period, the mill developed five socio-environmental
projects that benefited 400 people in the municipality of Santa Bárbara d’Oeste. One of these was
its Green Trail project, held on World Environment
Day in 2010. The project involved 121 people, including employees, their families and community
members. This recreational hike took place in the
Vale do Comanche environmental protection area
in the same district and was organized by the mill’s
Environment department.
During the reporting period, the Clealco Clementina
mill invested a total of BRL 1.5 million in a series of
actions: donations to non-profit organizations, public works, events in the municipal district of Clem-
entina and donations to organize vocational courses for mill employees and local residents.
In the crop year 2011/2012, the São Luiz mill used
the state sport incentive program (PIE) to support
the Ourinhos Super Basketball project organized by
the Municipal Sport and Recreation Department and
the Ourinhos Sports Center Association (Aceo). The
initiative involves infrastructure improvements for
the city’s women’s basketball team. The BRL
616,000 investment included funding for transport,
food, lodging, uniforms and balls during the
2011/2012 Women’s Basketball League, in which the
team was runner up, and in the 2012 São Paulo
Championship. [EC8 U]
Through Rouanet law incentives, the São Luiz mill
also remodeled its cultural center, in which around
300 children and adolescents take part in music,
information technology and dance classes, among
other activities. In July 2011, the mill’s cultural center together with the dance school Bailado de
Ourinhos, took part in the 14th Gymnaestrada, which
has been held in Lausanne, Switzerland since 1953.
This is considered to be the most important noncompetitive gymnastics festival in the world. A total
of 44 participants attended the festival, including
ballet dancers and support personnel.
Management of social impacts [SO1 U]
Eight mills have community monitoring and engagement programs. Two use the mandatory EIA-Rima socio-environmental study and report to diagnose impacts and develop action plans. Another
three mills see this report as a guide for reinforcing interaction and communication with the surrounding community.
The São Manoel mill has a policy for managing its impacts on the surrounding community and
implementing adjustment programs. The operation’s environmental and work safety impacts are
measured by means of an integrated management system. As the mill is located in a rural area
there is no direct contact with the municipality’s urban zone. The mill monitors community needs
directly or through institutions and associations and assesses its positive or negative impacts as
a basis for developing social programs.
Copersucar S.A.
109
5.8. Generation of co-products
Copersucar and the Partner Mills have
implemented a set of initiatives to ensure
proper waste management.
At the Partner Mills, the production cycle results
in positive impacts on the environment. Particularly worthy of mention is biofuel, which contributes to reduced greenhouse gas emissions. Moreover, the main co-products generated are reused.
Sugarcane bagasse and straw are used to produce
clean, renewable electrical energy. All the 48
units are self-sufficient in electricity, and 17 commercialize their surplus. Additionally, 100% of the
non-hazardous co-products – filter cake, vinasse,
boiler ash and bagasse – are reutilized. The vinasse (which is generated in the ethanol production process and is rich in potassium), filter cake
(rich in phosphorus), and boiler ashes are all ap-
plied directly to the soil to fertilize the cane plantations. The natural nutrients in these residues
substitute non-renewable industrial fertilizers.
The cane bagasse is used to generate thermal
energy for the mills, some of which commercialize
their surpluses. The quantities generated are
given in the table below. [EN22 U]
The re-use of co-products enabled the Pitangueiras
mill to reduce the amount of chemical fertilizer used
in its plantations by 20%.
In the crop year 2011/2012, the mills started to
report the volume of crop protection product
packaging, classified as hazardous waste, they
generate. Forty mills informed a total weight of
197 metric tons.
The Partner Mills dispose of this packaging in
accordance with legislation, with procedures
Quantity of co-products generated by the Partner Mills
Unit
Crop year
2010/2011
Crop year
2011/2012
NBR 10004
Classification
Use
Average
amounts
Boiler ashes
t
451,867
474,608
class 2 B
Fertilizer
463,238
Filter cake
t
2,657,266
2,456,867
class 2 A
Fertilizer
2,557,067
Vinasse
t
48,153,559
47,677,529
class 2 A
Fertilizer
47,915,544
Bagasse
t
21,294,573
20,575,531
class 2 B
Boiler fuel /
sale
20,935,052
Material
Materials reused (t) [EN2 U]
Crop year 2010/2011
Material
Boiler ashes
Filter cake
Vinasse
Total
110
Crop year 2011/2012
Weight (t)
% in relation to total
of materials reused
Weight (t)
% in relation to total
of materials reused
451,867
1
474,608
1
2,657,266
5
2,456,867
5
48,153,559
94
47,677,529
94
51,262,692
100
50,609,005
100
Use of agrochemicals
The Partner Mills’ use of crop protection products is restricted to those approved by the Ministry of Agriculture, Livestock and Supply. Each product’s application times are strictly observed
and all applications are based on prescription by accredited professionals. Workers responsible
for handling and applying the products use adequate protective equipment, and products are
stored separately from other inputs and materials at the mills. Employees who come into direct
contact with such products undergo periodic examinations to prevent contamination. Upon
disposal, these products are rinsed three times and returned to the manufacturer, in compliance with the law.
covering application, transport, worker safety,
storage and final disposal of empty packaging.
All the responding mills monitor these processes
and have selective collection programs in place.
[EN22 U]
The Cocal group has a complete Crop Protection
Product Management Plan, ranging from delivery of the product to its use and final disposal.
The choice of the product is determined by soil
needs and the type of weeds. The mills observe
the dosage limits informed for the products. The
areas in which the products are applied are demarcated with signs, with access restricted in
accordance with informed parameters. Crop protection products are kept in storerooms and may
only be withdrawn with the approval of the managers responsible. Used packaging is rinsed
three times and stored in specific areas while
awaiting final disposal.
Use of vinasse for fertirrigation at Partner Mill
Copersucar S.A.
111
Management at the TAC
The main environmental protection investments in
the TAC involved an investment of BRL 288,000
and included initiatives to ensure proper waste disposal and a dust removal system to prevent particulate material emissions. Expenses were also
incurred in treating and disposing of TAC effluents
in the Piqueri treatment plant. [EN30 C]
The terminal produces three main types of waste:
recyclable waste (including oils), effluents and
contaminated sugar, which are disposed of in accordance with regulations. TAC wastewater and
liquid effluents are collected in containment tanks
before disposal in the sanitation authority Sabesp’s Piqueri treatment plant. The materials are
collected and analyzed periodically. The TAC uses
the port authority Codesp’s sewage network.
[EN22 C]
The main recyclable materials received in the
selective collection system are paper, card-
board and plastic – materials which are normally used to cover the trailers of the vehicles
transporting bagged sugar to the terminal. The
waste generated by equipment and vehicle
maintenance and civil construction work is
stored and then recycled, as occurs with hazardous waste. [EN22 C]
The oil left over from equipment maintenance is
classified and stored in specific containers and then
sent to a specialized company for re-refining. In the
crop year 2010/2011 a total of 1,000 liters of oil was
treated. In the crop year 2011/2012, the volume of
accumulated oil was not sufficient for collection by
the specialized operator. [EN22 C]
Oils, grease and contaminated packaging are sorted,
identified and kept in a waste deposit, from where
they are forwarded to specialized companies. The
TAC currently has 2 thousand kg of contaminated
oil residues, which will be transferred for appropriate disposal as soon as there is sufficient volume
for removal. [EN22 C]
Total weight of waste generated in the TAC, by type [EN22 C]
Unit
Crop year
2010/2011
Crop year
2011/2012
Plastic
metric ton
10
4
Paper
metric ton
8
8
metric ton
0.04
0.06
unit
1,035
1,320
liters
1,000
0
Metal scrap
metric ton
2
0
Sugar contaminated by oil
metric ton
16.3
29.5
Grease
metric ton
1.1
1.0
Non-hazardous waste
Hazardous waste
Batteries
Fluorescent bulbs
Lubricating oil
112
Another waste material that is monitored is sugar contaminated by oil spills in the trucks responsible for transportation. Whenever contamination
is detected, the product is isolated and sent to
the waste deposit. From there it is sent for treatment and proper disposal in landfills, in accordance with the industrial waste disposal authorization certificate (Cadri in the Portuguese
acronym). In these cases, the TAC management
notifies the transport operator, charging it for the
losses incurred: the cost of the product and treatment and disposal of the contaminated material.
In the crop year 2010/2011, 16.3 metric tons of
sugar contaminated by oil were treated and disposed of. [EN22 C]
During the reporting period, the TAC did not undertake significant environmental protection investments. The expenditures incurred were related to operating processes such as dust
removal, effluent treatment and disposal, disposal of contaminated sugar and oil, recycling of paper and plastic and the purchase of environmental management software.
Environmental expenditures at TAC (BRL) [EN30 C]
Crop year 2010/2011
Crop year 2011/2012
34,320
36,379
112,100
0
1,600
4,258
32,000
15,386
3,500
3,500
2,217
2,500
6,960
7,500
12,600
7,859
5,000
0
210,297
77,382
Dust removal
Labor
Filters
1
Effluents 2
Analyses
Treatment and transport
Environmental legislation
Use of software
Lamps and batteries
Treatment
Paper, plastic and cardboard recycling
Transport and dumpster rental
Contaminated sugar
Transport and treatment
Contaminated oil and grease
Incineration and transport
Total (BRL)
1. During the crop year 2011/2012, there were no purchases of bag or cartridge filters, because the quantity acquired in the previous crop year was
sufficient; efficient maintenance also helped reduce spending.
2.Increased dry cleaning of floors and equipment led to a reduction in effluents, with a direct impact on the volumes transported and treated.
Copersucar S.A.
113
Children of Copersucar employees in environmental education activity
Managing waste in the office
At the administrative office, where operations do
not cause a significant environmental impact, waste
management was focused on encouraging employees and third-parties to adopt conscious consumption habits. This effort entailed increased internal
communication. The work on raising awareness is
undertaken jointly by the Human Resources, Corporate Communication, Purchasing and Information
Technology (IT) departments. A number of processes were implemented to reduce paper and ink consumption, including printing on both sides of sheets
of paper and controlling the quantities printed per
department. Another initiative involved the purchase of recycled paper made from sugarcane fiber
114
during the crop year 2011/2012. In addition to valuing the business chain, this material is now competitively priced and did not incur additional costs
for Copersucar.
The office generates hazardous (bulbs and batteries) and non-hazardous (plastic and paper)
waste. There is a recycling program for printer
cartridges, batteries and light bulbs. All waste paper (bond and kraft paper and paper towels) generated in the office is classified by type for reporting purposes. No waste is disposed of through
composting, reuse, incineration, underground
injection or on-site storage. Organic waste (from
bathrooms) is not quantified and is disposed of in
landfills. [EN22 C]
Total weight of waste at Copersucar office, by type [EN22 C]
Unit
Crop year
2010/2011
Crop year
2011/2012
Plastic
metric ton
4
4
Paper
metric ton
48
56
unit
60
90
Batteries
unit
540
625
Fluorescent lamps
unit
600
540
Non-hazardous waste
Printer ink cartridges
Hazardous waste
Green IT - recycling
In the crop year 2011/2012, Copersucar donated IT
equipment (microcomputers, notebooks, scanners,
printers, monitors, fax machines, electrical and electronic components) to two organizations: the Comitê de Democratização da Informática, a Brazilian
NGO that works with low-income communities, and
the Lar São Vicente de Paula, a home for 50 elderly people aged between 65 and 97 years in the
city of Santos.
Spillages
In the reporting period there was only one significant spillage at a Partner Mill. An underground
pipe burst, spilling 1,600 cubic meters of vinasse.
The spillage was restricted to the sugarcane plantation and a spring, which surfaced in 2009 as a
result of heavy rainfall. No damage was caused to
nearby permanent protection areas. The material
was contained using motorized pumps and removed to vinasse storage tanks and distribution
channels via tanker. [EN23 U]
There were no spillages in the transport of finished
product from the mills to transshipment terminals,
the TAC and end consumers in the crop year
Recycling class in BiodiversiArte program
2010/2011. In the following crop year, there was a
leak in an ethanol tanker truck on a highway in the
municipality of Limeira. The ethanol had to be transferred to another tanker, and 47.8 m3 were spilled
during this process. [EN23 U]
In the TAC operations, sugar may sometimes spill from
the dock conveyor belts during the loading process,
however, the volumes are insignificant. When this happens, Copersucar collects the product and disposes of
it. To prevent sugar spillages in the sea, the terminal
applies ISO 14001 standards. [EN23 U]
Copersucar S.A.
115
Declarations
6. Declarations
6.1. GRI Application Level Statement
116
Declarations
6.2. Independent Assurance Statement –
Bureau Veritas Certification
Copersucar S.A.
117
Declarations
118
Declarations
Copersucar S.A.
119
Declarations
120
Declarations
Copersucar S.A.
121
GRI Remissive Index
7. GRI Remissive Index [3.12]
Profile items, report parameters and governance
Strategy and Analysis
Description
Reported
Page/ Response
Reason for
omission
1.1
Message from the President
Complete
6, 8, 53, 62
-
1.2
Description of main impacts, risks and opportunities
Complete
6, 8, 62, 63
-
Description
Reported
Page/ Response
Reason for
omission
2.1
Name of organization
Complete
20
-
2.2
Main brands, products and/or services
Complete
20
-
2.3
Organization’s operating structure
Complete
21
-
2.4
Location of organization’s head office
Complete
21
-
2.5
Countries where the organization operates and where its
main operations are located
Complete
20
-
2.6
Type and legal nature of the property
Complete
20, 23
-
Indicator
Organizational Profile
Indicator
2.7
Markets served
Complete
8, 24, 34
-
2.8
Size of organization
Complete
8, 23, 24, 32
-
2.9
Main changes during the period covered
by the report
Complete
20, 22, 43
-
2.10
Awards received during the period covered by the report
Complete
53
-
Description
Reported
Page/ Response
Reason for
omission
3.1
Period covered by the report for the presented
information
Complete
12
-
3.2
Date of most recent past report
Complete
12
-
3.3
Report issuance cycle
Complete
12
-
3.4
Contact information for questions about report
or its content
Complete
16
-
3.5
Process for definition of report content
Complete
12, 13, 15
-
3.6
Report limit
Complete
13
-
3.7
Declaration about specific limitations with respect to report
scope or limit
Complete
13
-
3.8
Basis for elaboration of report
Complete
13
-
Report Parameters
Indicator
122
GRI Remissive Index
3.9
Data measurement techniques and bases for calculations
Complete
13. The quantitative indicators for
the Mills were calculated based
on the total number of mills that
responded to the indicator, using
the weighted average in relation
to volume of cane crushed or the
arithmetic average.
3.10
Reformulations of information provided in previous reports
Complete
There was no reformulation
of information provided in the
previous report.
3.11
Significant changes in scope, limit or measurement
methods applied in the report
Complete
13
-
3.12
Table identifying the location of information in the report
Complete
121
-
3.13
Policy and current practice in relation to search for external
verification for the report
Complete
12
-
Description
Reported
Page/ Response
Reason for
omission
4.1
Governance structure, including committees attached to high
governance body
Complete
43, 44, 45
-
4.2
Presidency of highest governance body
Complete
43, 47
-
4.3
Independent or non executive members of the highest
governance body
Complete
43
-
4.4
Mechanisms for shareholders and employees to make
recommendations
Complete
46, 47
-
4.5
Organization’s relationship between remuneration and
performance (including socio-environmental performance)
Complete
44, 47
-
4.6
Processes that assure that conflicts of interest
are avoided
Complete
49
-
4.7
Qualification of members of highest governance
body
Complete
44
-
4.8
Declarations of mission and values, codes of conduct and
relevant internal principles
Complete
50
-
4.9
Responsibilities for the implementation of economic,
environmental and social policies
Complete
44, 59, 71
-
4.10
Processes for self-assessment of the highest governance
body
Complete
44
-
4.11
Explanation of whether and how organization applies the
precaution principle.
Complete
48
-
4.12
Charters, principles or other initiatives developed
externally
Complete
71
-
4.13
Participation in domestic /international associations
and/or agencies
Complete
51, 72
-
4.14
List of stakeholder groups engaged by
organization
Complete
13, 52
4.15
Basis for identification and selection of
stakeholders
Complete
53
-
4.16
Approaches to engagement of stakeholders
Complete
13, 15
-
4.17
Main themes and concerns raised through stakeholder
engagement
Complete
14, 15, 16
-
-
-
Governance, Commitments and Engagement
Indicator
Copersucar S.A.
123
GRI Remissive Index
Forms of Management
Dimension
EC
EN
LA
HR
SO
PR
124
Aspects
Reported
Page /Response
Economic Performance
Complete
30, 32, 48, 79, 100, 107
Presence in the Market
Complete
98, 99, 100
Indirect Economic Impacts
Complete
104, 106, 107, 108, 109
Materials
Complete
91, 110
Energy
Complete
81, 82, 83
Water
Complete
89, 90
Biodiversity
Complete
85, 86, 88
Emissions, Effluents and Waste
Complete
90, 91, 110, 111, 112, 113, 114, 115
Compliance
Complete
85
Transport
Complete
36, 37
General
Complete
112, 113
Employment
Complete
96, 97, 98, 100
Relationship between Work and Governance
Complete
96, 98
Occupational Health and Safety
Complete
73, 74, 77
Training and Education
Complete
102, 103
Diversity and Equality of Opportunity
Complete
98, 99
Procurement process
Complete
92, 93, 94, 95
Non discrimination
Complete
92
Freedom of Association
Complete
92, 95
Child Labor
Complete
92, 93, 94, 95
Forced/ Slave Labor
Complete
92, 93, 94, 95
Indigenous Rights
Complete
95
Community
Complete
109
Corruption
Complete
48, 49, 51
Public Policies
Complete
52
Unloyal competition
Complete
34
Compliance
Complete
34
Customer Health and Safety
Complete
66, 67, 68
Product and Service Labeling
Complete
68, 69
Communication and Marketing
Complete
35
Customer privacy
Complete
68
Compliance
Complete
68
GRI Remissive Index
Performance Indicators
ECONOMIC PERFORMANCE
Indicator
Description
Reported
Page /Response
Units
Responding
30, 32
Copersucar
Economic Performance
EC1
Generated and distributed direct economic value
Partial
48, 79. Copersucar
does not make major
forecasts or quantitative
calculations of the
financial implications of
these changes.
EC2
Financial implications and other risks and opportunities
due to climatic changes
Complete
EC3
Coverage of organization's pension benefit obligations
Partial
100
EC4
Financial aid received from the government
Partial
107
Copersucar
Copersucar
and TAC
Copersucar,
TAC and
Partner Mills
Market Presence
EC5
Ratio of lowest salary compared with local minimum salary
Complete
EC6
Policies, practices and proportion of expenditures on local
suppliers
Partial
100. The TAC, head office
and the Partner Mills
are considered to be
important operating units .
42
Copersucar,
TAC and
Partner Mills
Partner
Mills
Indirect Economic Impacts
104, 106, 107, 109.
Based on a study
undertaken by Copersucar,
it was decided that
only locations in which
the Company operates
directly would receive
donations.
Copersucar, TAC
and Partner Mills
EC8
Impact of investments in infrastructure offered for
public benefit
Complete
EC9
Description of significant indirect economic impacts
Partial
108, 109
Partner
Mills
Description
Reported
Page/Response
Responding
Units
EN1
Materials used by weight or volume
Complete
91
EN2
Percentage of recycled materials used
Complete
110
ENVIRONMENTAL PERFORMANCE
Indicator
Materials
Copersucar
and TAC
Partner
Mills
Copersucar S.A.
125
GRI Remissive Index
Energy
EN3
Direct energy consumption discriminated by primary source
EN4
Indirect energy consumption discriminated by primary source
EN5
Energy saved due to conservation and efficiency
improvements
EN6
Initiatives to provide energy efficient products and services
Copersucar,
TAC and
Partner Mills
Copersucar,
TAC and
Partner Mills
Complete
81, 83
Partial
81, 83
Complete
82
TAC
Partial
82
TAC
Complete
89, 90
Water
EN8
Total water withdrawal by source
EN9
Water sources significantly affected by water withdrawal
EN10
Percentage and total volume of water recycled and reused
Partial
89
Complete
89, 90
TAC
Partner
Mills
Partner
Mills
Biodiversity
EN12
Significant impacts of activities, products and services
Complete
85, 88
EN13
Habitats protected or restored
Complete
86
EN14
Strategies to manage impacts on biodiversity
Partial
85
Partner
Mills
Partner
Mills
Partner
Mills
Emissions, Effluent and Waste
Partner
Mills
Copersucar
and TAC
Copersucar,
TAC and
Partner Mills
TAC and
Partner Mills
EN18
Initiatives to reduce greenhouse gas emissions and
reductions obtained
Complete
80
EN21
Total water discharge by quality and destination
Complete
90, 91
EN22
Total weight of waste by type and destination
Complete
110, 111, 112, 113, 114, 115
EN23
Number and total volume of significant spillages
Complete
115
Complete
85
Copersucar
Partial
36, 37
TAC
Complete
112, 113
TAC
Compliance
EN28
Monetary value of fines and total number of sanctions for
non-compliance with laws
Transport
EN29
Environmental impacts from the transport of products
and workers
General
EN30
126
Total investment and spending on environmental protection
GRI Remissive Index
SOCIAL PERFORMANCE – LABOR PRACTICES
Indicator
Description
Reported
Page/Response
Complete
96, 98
Partial
96, 97
Complete
100
Responding
Units
Employment
LA1
LA2
LA3
Total number of workers by employment type, employment
contract and region
Total number and turnover rate of employees by age group,
gender and region
Comparison of benefits for full-time employees and part-time
employees
Copersucar,
TAC and
Partner Mills
Copersucar
and TAC
Copersucar
and TAC
Relationship between Workers and Governance
LA4
Total number of employees covered by collective bargaining
agreements
Complete
96, 98
LA5
Description of notifications (times and procedures)
Complete
96
Complete
73
Copersucar,
TAC and
Partner Mills
Copersucar,
TAC and
Partner Mills
Health and Safety at Work
LA6
Percentage of employees represented by formal health and
safety committees
LA7
Rates of injuries, occupational diseases, days lost
Partial
73, 77
LA8
Education, prevention and risk control programs
Complete
74
LA9
Health and safety themes covered by formal union agreements
Complete
73
Copersucar,
TAC and
Partner Mills
TAC and
Partner Mills
Copersucar,
TAC and
Partner Mills
Copersucar,
TAC and
Partner Mills
Training and Education
LA10
Average number of hours training per year
Complete
102, 103
LA11
Competency management and ongoing training programs
Complete
102, 103
LA12
Percentage of employees receiving performance assessments
Complete
100
Partial
98, 99
Complete
98
Copersucar,
TAC and
Partner Mills
Copersucar,
TAC and
Partner Mills
Copersucar
and TAC
Diversity and Equality of Opportunity
LA13
LA14
Composition of senior management and councils and
breakdown by group and gender
Ratio of men's basic salary to women's by employment
category
Copersucar
and TAC
Copersucar
and TAC
Copersucar S.A.
127
GRI Remissive Index
SOCIAL PERFORMANCE – HUMAN RIGHTS
Indicator
Description
Responding
Units
Reported
Page/Response
Complete
93
Complete
94, 95
Complete
92
Copersucar
and TAC
Complete
92
Copersucar
and TAC
Complete
92, 95
Copersucar,
TAC and
Partner Mills
Complete
92, 93, 94, 95
Copersucar,
TAC and
Partner Mills
Complete
92, 93, 94, 95
Copersucar,
TAC and
Partner Mills
Complete
95
Partner
Mills
Reported
Page/Response
Responding
Units
Complete
109
Partner
Mills
Procurement Process
HR1
HR2
HR3
Percentage and total number of contracts containing human
rights clauses
Percentage of contractors and suppliers submitted to human
rights-related assessments
Total hours training for employees in human rights-related
policies and procedures, including percentage of employees
trained
Copersucar
and TAC
Copersucar
and TAC
Non Discrimination
HR4
Total number of cases of discrimination and measures taken
Freedom of Association
HR5
Freedom of association policy and extent to which it is
applied
Child Labor
HR6
Measures taken to contribute to abolition of child labor
Forced / Slave Labor
HR7
Measures taken to contribute to eradication of forced labor
Indigenous Rights
HR9
Total number of cases of breaches of indigenous peoples'
rights and measures taken
SOCIAL PERFORMANCE – SOCIETY
Indicator
Description
Community
SO1
Programs and practices to assess and manage the impacts of
operations on the community
Corruption
128
SO2
Units submitted to corruption-related risk assessments
Complete
48
SO3
Percentage of employees trained in organization's
anticorruption policies and procedures
Complete
51
SO4
Measures taken in response to cases of corruption
Complete
49
Copersucar
and TAC
Copersucar
and TAC
Copersucar
and TAC
GRI Remissive Index
Public Policy
SO5
Positioning on public policy
Partial
52
Copersucar
Complete
34
Copersucar
Complete
34
Copersucar
Reported
Page/Response
Responding
Units
Partial
66, 68
Copersucar
and TAC
Complete
67
Copersucar
Partial
68
Copersucar
and TAC
Complete
68
Copersucar
Partial
69
Copersucar
Complete
35
Copersucar
Complete
35
Copersucar
Complete
68
Copersucar
and TAC
Complete
68
Copersucar
Unfair Competition
SO7
Total number of legal actions related to anti-competitive
practices
Compliance
SO8
Monetary value of significant fines and total number
of non-monetary sanctions
SOCIAL PERFORMANCE – PRODUCT RESPONSIBILITY
Indicator
Description
Customer Health and Safety
PR1
PR2
Assessment of health and safety impacts during product
and service life cycle
Non-compliance related to impacts caused by products
and services
Product and Service Labeling
PR3
Type of product and service information required in labeling
procedure
PR4
Non-compliance with product and service labeling
PR5
Practices related to customer satisfaction, including results
of surveys
Communication and Marketing
PR6
PR7
PR8
Programs to adhere to laws, standards and voluntary codes
Cases of non-compliance related to communication of
products and services
Substantiated complaints regarding breaches of customer
privacy
Compliance
PR9
Fines for non-compliance related to the supply and use
of products and services
Copersucar S.A.
129
Glossary
8. Glossary
ABNT-NBR 14.280 – Abbreviation for Brazilian
Work Accident Registration Standard – Procedure
and classification.
PPAs – Permanent Preservation Areas (Áreas de
Preservação Permanente) – areas of pronounced
ecological importance, covered or not by native vegetation, whose function is to preserve water resources, the landscape, geological stability, biodiversity,
the gene flow of flora and fauna; protect the soil and
ensure the well-being of human populations.
Biofuel – Fuel made from renewable biomass. It is
produced on a commercial scale from agricultural
products such as sugarcane.
Biomass – In terms of energy, biomass is any renewable resource of vegetable or animal origin that
may be used to produce energy.
Co-product – Material produced systematically during the manufacture of the core product, which may
be reused/recycled without harm to public health
or the environment and which is compliant with
pertinent legislation.
CPFL – Acronym for Companhia Paulista de Força e Luz.
Crop year – The period in which the sugar and ethanol production cycle takes place. For Copersucar,
the crop year begins on April 1st and ends on March
31st of the following year.
Esalq – Acronym for Escola Superior de Agricultura
Luiz de Queiroz, the University of São Paulo agricultural school.
Filter cake – A by-product resulting from the filtering of the sugarcane juice, whereby impurities are
removed and used as organic fertilizer.
Bonsucro™ – Name of Better Sugarcane Initiative.
BVC – Acronym for Bureau Veritas Certification.
CDM – Clean Development Mechanism – Mechanism created under the Kyoto Protocol to help the
developed countries to reduce greenhouse gas
emissions. CDM projects may be based on renewable or alternative energy sources, energy efficiency and conservation or reforestation.
130
MSDS – Material Safety Datasheet (Ficha de Informações de Segurança de Produto Químico) A document containing information on safety, health and
environmental aspects of chemical products, with
recommendations, protective measures and instructions on how to proceed in emergencies.
CLT – Acronym denoting Brazilian Consolidation of
Labor Laws.
GHG – Greenhouse Gases – Gases that contribute
to the greenhouse gas effect, a natural phenomenon
leading to higher temperatures on the planet. The
high concentration of these gases in the atmosphere
intensifies this effect, causing global warming.
CO2e – Carbon gas equivalent (the sum of all greenhouse gas emissions converted into CO2).
GRI - Global Reporting Initiative – An international non-governmental organization consisting of
Glossary
different stakeholders and specialists whose mission
is to disseminate global guidelines for sustainability
reports, used voluntarily by companies worldwide.
Materiality – Principle for defining the content of
a sustainability report based on GRI guidelines, according to which the themes and indicators included in the report should take into account the views
of the reporting organization’s stakeholders. The
information in the report should cover topics and
indicators that reflect significant economic, environmental and social impacts or that may influence
stakeholder decisions.
SECSP – Acronym for São Paulo Commercial Workers’ Union.
Seriousness rate – The days lost computed by millions of man/hours of exposure to risk during a determined period.
Sindogeesp – São Paulo State Port and Waterway
Terminal Heavy Equipment Operators’ Union (Sindicato dos Operadores em Aparelhos Guindastescos, Empilhadeiras, Máquinas e Equipamentos
Transportadores de Carga dos Portos e Terminais
Marítimos e Fluviais do Estado de São Paulo).
Non-Partner Mills – Mills not associated with
Copersucar.
Stakeholder – Any person or entity impacting or
impacted by an organization’s activities.
NR 31 – Abbreviation for the Ministry of Labor
standard governing occupational health and safety in agriculture, animal husbandry, forestry and
fisheries.
TAC – Acronym for Copersucar Sugar Terminal.
Origination – Term used by Copersucar to denote
the acquisition of sugar and ethanol from nonpartner mills.
TEC – Acronym for Container Stuffing Terminal.
Vinasse – Liquid residue left over from the distillation of fermented sugarcane juice or molasses during ethanol production.
PCMSO – Portuguese acronym for the Occupational Health Medical Control Program.
PIE – Acronym for the São Paulo state Sports Incentive Program
PPE – Acronym for Personal Protective Equipment.
ProAc – Acronym for São Paulo state Cultural Action Program
Copersucar S.A.
131
Partner Mills
9. Partner Mills (June 2012)
132
Aralco
Aralco S.A. Indústria e Comércio
Santo Antônio do Aracanguá, SP
Batatais
Usina Batatais S.A. Açúcar e Álcool
Batatais, SP
Aralco - Alcoazul
Alcoazul S.A. Açúcar e Álcool
Araçatuba, SP
Buriti
Pedra Agroindustrial S.A.
Buritizal, SP
Aralco - Figueira
Figueira Indústria e Comércio S.A.
Buritama, SP
Caçu
Caçu Comércio e Indústria de Açúcar e Álcool Ltda.
Vicentinópolis, GO
Aralco - Generalco
Destilaria Generalco S.A.
General Salgado, SP
Catanduva
Virgolino de Oliveira S.A. - Açúcar e Álcool
Ariranha, SP
Partner Mills
Cerradão
Usina Cerradão Ltda.
Frutal, MG
Cocal II
Cocal Comércio Indústria Canaã Açúcar e Álcool Ltda.
Narandiba, SP
Clealco – Clementina
Clealco Açúcar e Álcool S.A.
Clementina, SP
Da Pedra
Serrana, SP
Clealco - Queiroz
Queiroz, SP
Decal - Rio Verde
Usina Rio Verde Ltda.
Rio Verde, GO
Cocal I
Cocal Comércio Indústria Canaã Açúcar e Álcool Ltda.
Paraguaçu Paulista, SP
Destilaria Santa Inês
Irmãos Toniello Ltda.
Sertãozinho, SP
Copersucar S.A.
133
Partner Mills
134
Ferrari
Ferrari Agroindústria S.A.
Pirassununga, SP
Ibirá
Sta. Rosa do Viterbo, SP
Furlan - Avaré
Usina Açucareira Furlan S.A.
Avaré, SP
Ipê
Nova Independência, SP
Furlan - Santa Bárbara
Santa Bárbara d’Oeste, SP
Ipiranga - Descalvado
Usina Ipiranga de Açúcar e Álcool S.A.
Descalvado, SP
Iacanga
Usina Iacanga de Açúcar e Álcool S.A.
Iacanga, SP
Ipiranga - Mococa
Mococa, SP
Partner Mills
Jacarezinho
Companhia Agrícola Usina Jacarezinho
Jacarezinho, PR
Monções
Açucareira Virgolino de Oliveira S.A.
Monções, SP
José Bonifácio
José Bonifácio, SP
Nossa Sra. Aparecida
Virgolino de Oliveira S.A. - Açúcar e Álcool
Itapira, SP
Lins
Usina Batatais S.A. - Açúcar e Álcool
Lins, SP
Pioneiros
Pioneiros Bioenergia S.A.
Sud Mennucci, SP
Melhoramentos
Destilarias Melhoramentos S.A.
Jussara, PR
Pitangueiras
Pitangueiras Açúcar e Álcool Ltda.
Pitangueiras, SP
Copersucar S.A.
135
Partner Mills
136
Santa Adélia - Jaboticabal
Usina Santa Adélia S.A.
Jaboticabal, SP
Santo Antônio
Usina Santo Antônio S.A.
Sertãozinho, SP
Santa Adélia - Pereira Barreto
Pereira Barreto, SP
São Francisco
Usina São Francisco S.A.
Sertãozinho, SP
Santa Lúcia
Usina Santa Lúcia S.A.
Araras, SP
São José da Estiva
Usina São José da Estiva S.A. Açúcar e Álcool
Novo Horizonte, SP
Santa Maria
J. Pilon S.A Açúcar e Álcool
Cerquilho, SP
São Luiz S.A
Usina São Luiz S.A.
Ourinhos, SP
Partner Mills
São Manoel
Usina Açucareira São Manoel S.A.
São Manuel, SP
Viralcool II - Castilho
Viralcool Açúcar e Álcool Ltda.
Castilho, SP
Uberaba
Usina Uberaba S.A.
Uberaba, MG
Zilor - Barra Grande
Usina Barra Grande de Lençóis S.A.
Lençóis Paulista, SP
Umoe Bioenergy II
Umoe Bioenergy S.A.
Sandovalina, SP
Zilor - Quatá
Açucareira Quatá S.A.
Quatá, SP
Viralcool I - Pitangueiras
Pitangueiras, SP
Zilor - São José
Açucareira Zillo Lorenzetti S.A.
Macatuba, SP
Copersucar S.A.
137
Partner Mills
Group
Mill
ALCOAZUL
ARALCO
Aralco
FIGUEIRA
GENERALCO
SANTO ANTÔNIO
Balbo
SÃO FRANCISCO
UBERABA
BATATAIS
Batatais Lins
LINS
Caçu
CAÇU
Decal – Rio Verde DECAL - RIO VERDE
Cerradão
CERRADÃO
CLEMENTINA
Clealco
QUEIROZ
Cocal
COCAL I - PARAGUAÇU
COCAL II - NARANDIBA
Ferrari
FERRARI
Furlan
FURLAN - AVARÉ
FURLAN – SANTA BÁRBARA
Jacarezinho
JACAREZINHO
Melhoramentos
MELHORAMENTOS
BURITI
IBIRÁ
Pedra
IPÊ
DA PEDRA
Pitangueiras
PITANGUEIRAS
SANTA ADÉLIA - JABOTICABAL
SANTA ADÉLIA - PEREIRA
Santa Adélia
BARRETO
PIONEIROS
Santa Lúcia
SANTA LÚCIA
Santa Maria
SANTA MARIA
São José da Estiva SÃO JOSÉ DA ESTIVA
São Luiz S.A.
SÃO LUIZ S.A.
São Manoel
SÃO MANOEL
IPIRANGA - DESCALVADO
Titoto Cunali
IACANGA
IPIRANGA - MOCOCA
UMOE
UMOE BIOENERGY II
DESTILARIA SANTA INÊS
Viralcool
VIRALCOOL I - PITANGUEIRAS
VIRALCOOL II - CASTILHO
CATANDUVA
NOSSA SRA. APARECIDA
VO - Virgolino
de Oliveira
JOSÉ BONIFÁCIO
MONÇÕES
ZILOR - BARRA GRANDE
ZILOR
ZILOR – QUATÁ
ZILOR - SÃO JOSÉ
138
Company Name
City
Alcoazul S.A. Açúcar e Álcool
Aralco S.A. Indústria e Comércio
Figueira Indústria e Comércio S.A.
Destilaria Generalco S.A.
Usina Santo Antônio S.A.
Usina São Francisco S.A.
Usina Uberaba S.A.
Caçu Comércio e Indústria de Açúcar e Álcool Ltda.
Usina Rio Verde Ltda.
Usina Cerradão Ltda.
Cocal - Comércio Indústria Canaã Açúcar e Álcool Ltda.
Cocal - Comércio Indústria Canaã Açúcar e Álcool Ltda.
Ferrari Agroindústria S.A.
Companhia Agrícola Usina Jacarezinho
Destilarias Melhoramentos S.A.
Pitangueiras Açúcar e Álcool Ltda.
Araçatuba, SP
Santo Antônio do Aracanguá, SP
Buritama, SP
General Salgado, SP
Sertãozinho, SP
Sertãozinho, SP
Uberaba, MG
Batatais, SP
Lins, SP
Vicentinópolis, GO
Rio Verde, GO
Frutal, MG
Clementina, SP
Queiroz, SP
Paraguaçu Paulista, SP
Narandiba, SP
Pirassununga, SP
Avaré, SP
Santa Bárbara d’Oeste, SP
Jacarezinho, PR
Jussara, PR
Buritizal, SP
Sta. Rosa do Viterbo, SP
Nova Independência, SP
Serrana, SP
Pitangueiras, SP
Jaboticabal, SP
Pereira Barreto, SP
Pioneiros Bioenergia S.A.
Usina Santa Lúcia S.A.
J. Pilon S.A - Açúcar e Álcool
Usina São José da Estiva S.A. Açúcar e Álcool
Usina São Luiz S.A.
Usina Açucareira São Manoel S.A.
Usina Iacanga de Açúcar e Álcool S.A.
Umoe Bioenergy S.A.
Irmãos Toniello Ltda.
Virgolino de Oliveira S.A. Açúcar e Álcool
Virgolino de Oliveira S.A. Açúcar e Álcool
Usina Barra Grande de Lençóis S.A.
Açucareira Quatá S.A.
Açucareira Zillo Lorenzetti S.A.
Sud Mennucci, SP
Araras, SP
Cerquilho, SP
Novo Horizonte, SP
Ourinhos, SP
São Manuel, SP
Descalvado, SP
Iacanga, SP
Mococa, SP
Sandovalina, SP
Sertãozinho, SP
Pitangueiras, SP
Castilho, SP
Ariranha, SP
Itapira, SP
José Bonifácio, SP
Monções, SP
Lençóis Paulista, SP
Quatá, SP
Macatuba, SP
Management - Copersucar
10. Management - Copersucar S.A.
Board of Directors
Luís Roberto Pogetti
Chairman
Antonio José Zillo
Antonio Eduardo Tonielo
Carlos Dinucci
Carlos Ubiratan Garms
Clésio Antonio Balbo
Geraldo José Carbone
Hermelindo Ruete de Oliveira
José Luciano Duarte Penido
Leopoldo Titoto
Norberto Bellodi
Executive Board
Paulo Roberto de Souza
Alexandre Mattos Setten
Logistics Executive Director
Luís Felipe Schiriak
Chief Financial Officer and Director of Investor Relations
Mauricio de Mauro
Planning Executive Director
Soren Hoed Jensen
Commercial Executive Director
Copersucar S.A.
139
Copersucar S.A.
Avenida Paulista, 287 - 1º, 2º and 3º floors
01311-000 - São Paulo - SP - Brasil
Telephone +55 11 2618-8166 - Fax +55 11 2618-8355
Copersucar Europe B.V.
World Trade Center, 10th Floor,
Beursplein 37
3011 AA Rotterdam
P.O.Box 30210
3001 DE Rotterdam
The Netherlands
Telefone 0031 10 413-5634
Copersucar Sugar Terminal - TAC
Av. Cândido Gafree, s/n
Armazéns VI, XI, XVI e XXI - Santos - SP
Telephone +55 13 3226-2100 - Fax +55 13 3226-2147
Copersucar Container Stuffing Terminal - TEC
Rua José de Almeida, 224 - Área B - Jardim Conceiçãozinha
11454-630 - Guarujá - SP
Copersucar Multimodal Terminal I - Ribeirão Preto
Rua Peru, 2400
Distrito Industrial Coronel Quito Junqueira
14075-310 - Ribeirão Preto - SP
Telephone +55 16 3969-2297 / +55 16 3969-2296
Copersucar Multimodal Terminal II - São José do Rio Preto
Rua Silva Jardim, s/n - Estação Ferroviária
15025-065 - Pq Industrial São José do Rio Preto - SP
Photographs: Cícero Viegas, Fernando Battistetti,
Tadeu Fessel and photo stock
Graphic design: Ideia Visual
140
Management and Sustainability Report
Crop Years 2010/2011 and 2011/2012
Avenida Paulista, 287 | 1º, 2º and 3º floors
01311-000 | São Paulo | SP | Brasil
Telephone +55 11 2618-8166
-capa_INGLES.indd 1
8/17/12 1:41:54 PM

Crop years 2010/2011 and 2011/2012

Transcription

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