Sustainability Our Profile
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SUSTAINABILITY REPORT 2015 OUR PROFILE Louis Dreyfus Company is a leading FUNDAMENTALS 2 merchant and processor of agricultural CEO MESSAGE: SUSTENANCE IN A SUSTAINABLE FUTURE 2 goods, leveraging its global reach and SNAPSHOT 4 extensive asset network to deliver for OUR VALUES 6 OUR ROLE: THE INDUSTRY & THE WORLD 8 its customers around the world – safely, responsibly and reliably. PILLARS OF SUSTAINABILITY 10 PEOPLE 12 Our diversified activities span the entire value chain from farm ENVIRONMENT 18 to fork, across a broad range of business lines (platforms). PARTNERS 24 Since 1851 our portfolio has grown to include Oilseeds, Grains, COMMUNITY 30 Rice, Freight, Finance, Coffee, Cotton, Sugar, Juice, Dairy, Fertilizers & Inputs and Metals. We help feed and clothe some 500 million people every year PLATFORMS’ INSIGHT 34 by originating, processing and transporting approximately PALM 36 81 million tons of commodities. In our efforts to help sustain a JUICE 38 growing global population we rely on our worldwide presence, responsible practices, sophisticated risk management and COFFEE 40 in-depth market knowledge. COTTON 42 The commitment of our employees is essential to those efforts, SOYBEANS 44 which is reflected in their ownership of approximately 10% of the Group. Our diversified approach generated US$55.7 billion in net sales supported by a US$3.9 billion asset base for the LOOKING AHEAD 46 year ended 31 December 2015. Unless otherwise indicated, “Louis Dreyfus Company”, “LDC”, “Group”, “Louis Dreyfus Company Group” and related terms such as “our”,“we”, etc. used in this Sustainability Report mean the Louis Dreyfus Company B.V. Group. 1 FUNDAMENTALS CEO MESSAGE: SUSTENANCE IN A SUSTAINABLE FUTURE 2015 has been a year of change for agribusiness and for Louis Dreyfus Company. We set a new 10-year strategy, and continued to adapt to challenging market conditions while ensuring compliance with a shifting regulatory environment. I am very pleased to be able to present a Sustainability Report that displays continuity – ongoing progress from our !rst standalone report in 2012 – despite the shifting dynamics of commodities markets. It gives me con!dence in our approach that our sustainability e"orts remain a constant commitment. First, the increasing involvement of Most notably, we undertook a supply chain SUSTAINABILITY INTEGRITY platforms in sustainability programs that is POWERED mapping process on our palm operations AND OUR VISION TO DELIVER reflected in this report. Last year, for the BY PEOPLE with an external consultant. Their work has first time, 4 platforms had sections of the been invaluable and I thank them not only Our vision will be key to maintaining this As always, we acknowledge that we must Sustainability Report dedicated to their All our success depends entirely on our for delivering the results but also for their progress. The new vision, at the heart of back up our ambitious vision with actions. efforts. This year we add the soybean talented, dedicated people. I thank them enormous contribution to our learning. our recent rebranding, keeps sustainability We pride ourselves in our integrity – a operations of our Oilseeds Platform. for all of their efforts. More innovatively, we were one of the central to our business model: reputation built over more than 165 years. 43% Having 5 sizeable areas of our business More important than simply thanking participants in a world-leading global food It is crucial that we live up to our vision with so much to discuss is an excellent To work towards a safe and sustainable REDUCTION them, our business practices must support security game (see page 25). Food Chain and ethical standards if we are to retain IN GRAVITY start. I am sure we will keep adding future, contributing to the global and value them in their work. For example, Reaction has supported food security that reputation. OF ACCIDENTS platforms as sustainability becomes more effort of providing sustenance for our aim will always be to lead our industry efforts through modelling how the world and more deeply embedded across a growing population. This leads us to seek to embed in safety standards and results. This year responds to shocks to the food supply sustainability into every LDC person’s the company. we exceeded our targets on both the What has long been inherent in the LDC chain, for operators like LDC as well as work, at every level of the company. With incidence and the severity of injuries. way of doing business is at the forefront of Secondly, I am excited to reflect on for policymakers and NGOs. over 22,000 employees at peak season, the hard work done by our Industry how we understand our role in the world. We retain our goal to reach zero lost time I encourage you to read in detail on these that is a significant task. function to successfully pilot a potential The vision reinforces our commitment to accidents across all our assets, every year. projects, and many others in this report. company-wide approach to reducing the 4 pillars of our sustainability strategy: Our merchant role includes matching It is ambitious, but we will not be put off We always welcome feedback on our demand with sustainable supply. This energy consumption and greenhouse by the challenge. • community work as we seek to improve in partnership involves providing information along the gas emissions. They have demonstrated • people with all our stakeholders. supply chain, and we see this report as 24% that ingraining energy efficiency goals in • environment part of that process. REDUCTION people’s day-to-day jobs is both possible • partners LEARNING WITH IN FREQUENCY and effective. In the pilot in Asia they Much of this work requires granular OF ACCIDENTS reduced energy consumption by 10% STAKEHOLDERS focus on day-to-day operations. The on an annualized basis, benefiting both Working in partnership with others has management team and I support that work the planet and our bottom line. wholeheartedly. There are many people long been in the LDC DNA. We have and initiatives deserving praise, but I I look forward to reporting on the learned a great deal alongside partners Gonzalo Ramírez Martiarena would particularly like to highlight two. next phase of these developments. this year, in many different ways. Chief Executive Officer 2015 SUSTAINABILITY REPORT 2 Louis Dreyfus Company 3 FUNDAMENTALS SNAPSHOT 165 years of experience over a period of ceaseless global change KEY FACTS THE VALUE CHAIN A MATRIX AND Our strategic asset 5 12 WE ORIGINATE We own farms and share best portfolio spans the ORGANIZATION OF REGIONS PLATFORMS AND PRODUCE practice with farmers and producers worldwide. whole value chain. WE PROCESS Platforms from our AND REFINE Value Chain and OPERATING OVER IN OVER Merchandizing We control quality and segments skillfully use 10% 90% 22,000 supply products to our 100 APPROX. APPROX. assets at various stages PEOPLE EMPLOYED merchandizing network. COUNTRIES of the value chain to EMPLOYEE OWNED BY THE WE STORE get the right product to OWNED LOUIS DREYFUS AND TRANSPORT the right location, at the GROUP AT PEAK SEASON right time, no matter We efficiently manage how challenging the movements across the value chain. environment. OVER WE RESEARCH 300 88 500m AND MERCHANDIZE ASSETS OFFICES ARE FED AND CLOTHED PEOPLE BY US EVERY YEAR All platforms and regions rely on this knowledge to guarantee responsive supply. WE CUSTOMIZE AND DISTRIBUTE APPROX. 81million SHIPPED TO TONS OF COMMODITIES DESTINATION We supply all types of customers with products. SUPPORTED BY A US$55.7BILLION US$3.9BILLION YEAR ENDED NET SALES 31 DECEMBER 2015 FIXED ASSET BASE A DIVERSIFIED PORTFOLIO OILSEEDS GRAINS JUICE FERTILIZERS FREIGHT COTTON SUGAR RICE COFFEE DAIRY FINANCE METALS & INPUTS 2015 SUSTAINABILITY REPORT 4 Louis Dreyfus Company 5 FUNDAMENTALS OUR VALUES We share an uncompromising As a global company, we determination to achieve encourage respect for every excellence in everything we individual, promoting diversity undertake, delivering to the in every aspect of our business, best of our ability for all our and in all locations where we stakeholders. are present. We are committed to our Recognizing its business customers, placing them at the value, we encourage varied center of everything we do. approaches to problem-solving, and open and respectful We are committed to our communication between people, acknowledging and As a global leader in the employees from diverse cultural investing in them as our most agri-commodities industry, and professional backgrounds, Our growth and sustained valuable asset. we are aware of our and strive to build close ties performance are driven by responsibility to foster and relationships with local our entrepreneurial spirit; long-term stability and communities where we we support and empower growth, to do business are present. our people to take initiatives, with integrity, feeding create and innovate, while and clothing the world balancing this drive through sustainably. a sound approach to risk Determined to lead by management that calls for example, we stretch informed, measured and ourselves continuously, controlled decisions and learning from others and judgments. through questioning and feedback, and challenging ourselves to find better We are committed to our solutions. partners, working with them hand-in-hand to reap the collective rewards of responsible business practices. We are committed to the world around us, accepting our responsibility for contributing positively to our local communities in an ever- changing environment. OUR VISION OUR MISSION To work towards a safe and sustainable future, To use our know-how and global reach to bring the contributing to the global effort of providing right product to the right location, at the right time. sustenance for a growing population. 2015 SUSTAINABILITY REPORT 6 Louis Dreyfus Company 7 FUNDAMENTALS OUR ROLE: THE INDUSTRY & THE WORLD Louis Dreyfus Company aims to be part of a sustainable answer to the challenge of feeding a growing population.