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Bunge Sustainability Report 2007 Edition Brazil Bunge Sustainability Report – 2007 Edition Bunge Sustainability Report 2007 edition Brazil Bunge Sustainability Report – 2007 edition Responsible Growth We have overcome the industry crisis by restructuring our operations, focusing on business sustainability The Brazilian agribusiness industry endured a During 2006 conditions in the industry gradually strongly depressed market during 2005-2006, improved, and Bunge continued with its caused by weather and structural issues, such operational and strategic restructuring to achieve as appreciation of the Brazilian currency – the higher efficiency and productivity, improved real, high transportation costs and an inefficient information flow and better decision making. tax structure. With operations across the food production chain, Bunge faced difficulties. Our relationships with important stakeholders were also highlighted. Bunge’s Customer Focus Bunge took a series of steps to overcome these initiative, implemented at the start of the year, difficulties and to ensure better performance became a regular part of our operations. This in our operations: originating, crushing and initiative reflects our strategic priorities: get exporting grains and derivatives; mining and closer to our customers, better understand their producing fertilizers and animal nutrition raw needs and offer them the best products and materials; and creating food products for a wide services in the market. range of consumers. We are committed to furthering the well-being In order to improve competitiveness by of the communities in which we operate, and decreasing costs, we had to review our headcount, in 2006 we continued our outreach to our promoting dismissals from directors to factory stakeholders through Fundação Bunge (Bunge employees – a dramatic means, avoided up to the Foundation) and other activities. Created more last moment, but necessary to sustain Bunge’s than 50 years ago, Fundação Bunge coordinates a operations in the country. large portion of the group’s social responsibility Bunge is ranked by Valor Econômico, Você S/A and programs throughout Brazil. One of its primary Exame magazines as one of the best companies goals is to improve basic public education in the to work for in Brazil, and we believe these nation through programs such as Comunidade recognitions demonstrate that this process Educativa (Educative Community), which was conducted in the best way possible, with brought together 508 volunteers and 7,000 transparency and respect for employees. schoolchildren in eight states. MESSAGE FROM THE CEOs Sérgio Waldrich – CEO Bunge Alimentos Mário Barbosa – CEO Bunge Fertilizantes Bunge also works to lessen the impact of industry the region, which will ensure preservation of on the environment and to increase environmental the biome and economic development for its 16 protection. We continue to promote dialogue million inhabitants. on the sustainable expansion of agriculture in Bunge also increased its investment in different biomes through forums with growers, ecoefficiency. We proceeded with recycling, consumers and representatives of NGOs and the selective garbage collection systems, reutilization government. of industrial waste and the creation of green areas. We are confident that agribusiness and Over the last two years, Bunge Fertilizantes has environmental preservation can be developed invested R$14 million in the implementation of side by side. The Cerrado Reserve Rescue Project, air emission and liquid effluent control systems at which balances rural production activity and its facilities. biodiversity preservation, is a good example of a Bunge’s vision is to enhance lives by improving the successful initiative. global food and agribusiness production chain. This Perhaps the most representative measure in this means creating benefits not just for Bunge, but for area was the Amazon soybean moratorium. The society as a whole. This report offers a transparent crop, which is planted on less than 1% of land in view of the steps taken in Brazil in 2006. We believe the Amazon biome, is named as one of the main that it reflects our commitment and the progress we threats to the area. For us, the best way to protect are making to follow our vision. the biome is to help it develop in a sustainable way. Thus, we are one of the leaders in the soy moratorium and along with other members of our industry, we have committed to not buy soybeans Mário Barbosa from newly deforested areas in the Amazon biome CEO Bunge Fertilizantes for two years. During this period we will work with government, industry and civil society to Sérgio Waldrich create a new sustainable development policy for CEO Bunge Alimentos Bunge Sustainability Report – 2007 edition sumMARY Strategic Vision 07 Organizational Profile 15 Corporate Governance 25 Relationships with Stakeholders 31 Economic and Financial Performance 37 Tax incentives 38 Transparent results 38 Environmental Responsibility 41 Materials 41 Energy 43 Water 44 Biodiversity 45 Emissions, effluents, and waste 49 Products and services 52 Compliance 55 Suppliers 55 Social Responsibility 57 Human Rights 57 Work Practices 61 Responsibility for the product 67 Society 69 Methodology and GRI Index 79 This report presents consolidated information for 2006. Bunge Sustainability Report – 2007 edition VISÃOSTRATEGIC ESTRATÉGICA VISION GLOBAL Opportunities and Challenges A review of Bunge’s management model, partnerships and sustainability policies, which strengthen its global position in the industry World population growth poses an enormous Fertilizantes, Fertimport and Fundação Bunge seek challenge to society: Providing nutritious and to continuously strengthen the relationship with high-quality food for our planet’s nearly seven governments, customers, NGOs, and suppliers to billion people. The mission becomes even bring economic and social benefits to the country. more complex when we consider that there are Through these core efforts, Bunge aims to become more than 850 million undernourished people the world’s leading food and agribusiness company. in our world, according to a United Nations (U.N.) estimate. As with any economic activity, food production, either in the field or in manufacturing plants, causes To face this global crisis, the U.N. has made halving important social and environmental effects. Agriculture hunger and poverty by 2015 the first of its eight represents 70 percent of water consumption Millennium Development Goals—and in doing so worldwide, putting strain on an increasingly scarce has greatly heightened the need for contributions and essential resource. Additionally, food cultivation and the responsibility of companies like Bunge. requires fertile land, which sometimes leads Today, food and agribusiness companies must growers or companies not commited to sustainable look beyond profit to improve sustainability, and development to deforest vegetative coverage areas and Bunge is committed to delivering solutions while interfere with ecosystems. obtaining solid long-term returns. The food industry, in turn, uses energy and water in There are several opportunities for companies and a large scale, and generates waste that largely is not other organizations to adopt sustainable initiatives reused in the production chain. Transporting food to in the food production chain. Bunge’s activities the domestic and foreign markets causes air pollution in Brazil, through Bunge Alimentos, Bunge and demands high infrastructure investments. Vision: Enhancing lives by improving the global food and agribusiness production chain. Bunge’s Sustainability Policy – Brazil • Associate business objectives with social and • Invest in the development of partner, who environmental responsibility issues. understand the concepts employed and present their vision of the process. • Go beyond mere compliance with local environmental legislation and other requirements applicable to its • Generate value, employment, income, and wealth processes, products, and services. for the communities and countries in which the company operates. • Promote ongoing environmental improvement and sustainable development, applying management • Demonstrate social responsibility, striving to meet principles, performance indicators, and environmental the needs of the communities in which it operates and risk assessments. promoting the responsible use of natural resources. • Maintain an open and ethical posture in all business • Contribute to the development of citizenship through activities and relations. actions which enhance education and knowledge. Bunge’s Four Strategic Priorities We focus on growth: We position Bunge for product quality so that farmers and customers growth in the most attractive markets for our turn to us first. products. Our operating model is unique: We base our We strive for efficiency: We work model on integrated but decentralized operations continuously to reduce costs and improve and a strong culture built on shared values to productivity. achieve both the efficiency of a global entity and Quality in services and products is a the speed of a local business. priority: We provide premium service and In order to strengthen the food production chain, Bunge provides fertilizers to STRATEGIC VISION Because Bunge is involved in all stages of the The good soil and climate conditions of Brazil, food production chain, we address those issues combined with its large territory, make its in our daily operations. Our presence around the food-production potential one of the world’s best. world increases our corporate responsibility,
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