In this section, we provide our stakeholders with a summary of the GRI Content Index and data to supplement the indicators of the G4 version. Other information related to indicators can be found in other chapters of our Annual Report.
During the 2015/2016 crop year, the Internship Program began to be considered the main port of entry into the Company for young professionals. We forged partnerships with prominent universities near our Agroindustrial Clusters and focused on identifying young students instead of recent graduates. This explains the growth in the number of interns from 26 to 62 in the annual comparison and the reduction in the number of recent graduates from 36 to 3.
Odebrecht Agroindustrial does not hire self-employed workers in relevant activities and is not subject to seasonal variations in its workforce. For more information, click here.
Workforce by employment contract and gender*
*Historical data by gender is not available.
Workforce by region and gender*
*Historical data not available.
Team Members by employment contract, employment type and gender*
*Includes Team Members, Apprentices, Young Partners and Interns. All Team Members hired for indefinite periods work full time. Historical data is not available.
All Team Members are covered by collective bargaining agreements.
Odebrecht Agroindustrial manages its Suppliers through two distinct departments: Procurement and Agricultural Partnerships. The Procurement corporate department is responsible for contracting Suppliers of agricultural and industrial equipment and the respective maintenance or lease services, inputs and materials, sugarcane transportation, logistics and general services. In the last crop year, we had 4,406 Suppliers and made a total of R$2.3 billion in purchases. Of this amount, we allocated around 35% to the acquisition of inputs and materials and 26% to logistics and cane transportation activities. Geographically, Suppliers are concentrated in the Midwest and Southeast, where the Company’s operations are also located, which accounted for 36.5% and 56.0% of total Suppliers, respectively. One specific area at each Cluster is responsible for managing the sugarcane Partners and the land for cultivation. The Agricultural Partnerships team and the Suppliers Program for this public were created in 2013 to overcome the challenges faced by the sugar and ethanol industry to ensure an ample supply of quality raw materials and the productivity and competitiveness of its partners. The proposition is for Partners to be responsible for tilling, planting and tillering as well as cutting, loading and transportation (CLT) to support the expected expansion in planted areas so that the units can reach their maximum production capacity. Partnerships are based on a win-win proposition in which Odebrecht Agroindustrial provides support for developing a business plan and technical support. In return, the Company seeks companies with experience in the industry that are committed to improving their sugarcane productivity and quality indicators. Depending on the needs of each Cluster, we also enter into spot supply contracts valid only for delivery in that specific crop year. For more information, click here.
With regard to the ownership structure, the following changes occurred: capital increase at Rio Claro Agroindustrial S.A., which diluted the interest held by the non-controlling Shareholder in this Unit to less than 1%; and acquisition of the non-controlling interests in Destilaria Alcídia S.A. to reach a holding of 100% of the unit’s capital stock. To learn about the operational changes in the period, see the section About Odebrecht Agro. For information on changes in our relations with Suppliers, see the section Relationship with Partners and Suppliers.
There is no risk of severe or irreversible environmental impacts on the operations of Odebrecht Agroindustrial. The environmental risks with the greatest potential are associated with the use of vinasse in the fertigation of sugarcane fields (development of flies in barns and contamination of soil and bodies of water) and are all reversible. The Company ensures the integrity of its vinasse application systems by adopting a set of preventive procedures and regular monitoring of the quality of soils and bodies of water. In the case of spills, contention and remediation actions are taken immediately, the Company’s entire leadership is notified within 24 hours and a detailed report on the scope of the incident and the improvement actions to be adopted is drafted within 15 business days.
Odebrecht Agroindustrial participates in the decision-making boards of the Sugarcane Industry Association (UNICA), the Bioenergy Producers Association of Mato Grosso do Sul (Biosul), the Goiás State Ethanol Industry Union (Sifaeg), the Mato Grosso State Sugar and Ethanol Industry Union (Sindalcool-MT) and the Bioenergy Producers Union (Udop). At the first three organizations, the Company also participates in committees and commissions related to the environment, health and safety, agricultural management, human resources and legal and tax issues. In the most comprehensive debates of the production industry, Odebrecht Agroindustrial participates in the Agribusiness Theme Council of the National Industry Confederation (CNI) and the Legislative Monitoring Center of the São Paulo State Industry Federation (FIESP). The Company also contributes to the formulation of public policy for the industry by participating on the Sugar and Ethanol Sector Chamber of the Ministry of Agriculture, Livestock and Supply (MAPA) and on the Government-Producers-Distributors Tripartite Board of the Ministry of Mines and Energy. For more information, click here.
The Annual Report 2015/2016 of Odebrecht Agroindustrial encompasses the following entities: Agro Energia Santa Luzia S.A.; Brenco Companhia Brasileira de Energia Renovável S.A.; Destilaria Alcídia S.A.; Rio Claro Agroindustrial S.A.; Usina Eldorado S.A.; and Usina Conquista do Pontal S.A. Furthermore, the Company's financial statements also encompass the entities Odebrecht Agroindustrial Participações S.A.; Centro Sul Transportadora Dutoviária Ltda.; Odebrecht Agroindustrial International Corp.; and Pontal Agropecuária S.A. Note that the environmental indicators (G4-EN1, G3-EN3, G4-EN8, G4-EN10, G4-EN11, G4-EN23, G4-EN31 and G4-EN34) and safety and health indicators (G4-LA6) consider only the agroindustrial operations by excluding the São Paulo and Campinas offices.
The following table shows the aspects related to each of the material topics and the respective external boundaries. The internal boundary of all material aspects is the Company as a whole, including its production units and offices. To learn more, click here.
|Material topic||Correlated GRI aspects||External boundaries|
Wastewater and solid waste
Products and services
Environmental assessment of suppliers
Grievance mechanisms related to environmental impacts
|Geographic: regional, except for emissions, products and services, compliance and the assessment of suppliers, whose impacts and risks have a national scope.
Stakeholders: Community, Suppliers, Agricultural Partners, Non-governmental Organizations, Government and Financial Institutions.
|Local Development||Indirect economic impacts
|Geographic: regional, except for procurement practices, whose impacts and risks have a national scope.
Stakeholders: Community, Suppliers and Government.
|Efficient Use of Natural Resources||Materials
Stakeholders: Suppliers, Agricultural Partners and Non-governmental Organizations.
|Ethics, Transparency and Integrity||Assessment of suppliers’
Compliance (social – society)
Stakeholders: Shareholders, Clients, Commercial Partners, Financial Institutions, Government and the Media.
|Team Member Safety and Health||Occupational health and safety
Training and education
|Business Performance||Economic performance
Stakeholders: Shareholders, Clients, Commercial Partners and Financial Institutions.
Three indicators had their consolidation methods altered significantly. In these cases, the historical data were not recalculated and the data reported in previous reports is not comparable for the purpose of analyzing the evolution in performance:
- G4-EN1: the categories of the materials consumed were changed to approximate the reporting to the way in which this aspect is managed.
- G4-EN10: the assumptions for water reuse were revised and now exclude the vinasse obtained directly from sugarcane in the volume of water reused.
- G4-EN31: the categories of investments and environmental spending were changed to approximate the reporting to the way in which this aspect is managed.
There were no significant changes in the boundaries and scopes of relevant aspects with regard to prior periods.
The materiality process involved stakeholders more directly related to the Company’s operations. The representatives of local governments and Communities invited were selected from among the representatives involved in the Social Energy program for social private investment operated at the Company's units. The representatives of Clients and Suppliers invited were selected from the areas that work directly with these stakeholders by indicating those who could contribute the most to the materiality process. For more information, click here.
The stakeholder engagement process used for the Materiality Matrix made it possible to identify the topics of interest to each group with regard to Odebrecht Agroindustrial’s sustainability management and reporting, which are listed below. For more information on the topics raised by the Social Energy Program, click here.
- Clients | They demand closer relations with the regulatory market and the chain to ensure the industry’s competitiveness in the long run. Their priorities include concern with the economic pillar and environmental management to ensure efficient water and energy consumption and the mitigation of negative impacts.
- Suppliers| They also see as a strategic priority ensuring economic and financial results that support the development of the businesses and investments in social and environmental aspects. In the environmental aspect, the main priorities are generating clean energy with carbon offsets, educational activities focused on sustainability and adapting to the risk of water scarcity. This stakeholder is also concerned with management of the aspects of integrity and combating corruption and the relations with local Communities at each Cluster.
- Civil Society | The main topics of interest refer to local development and private social investment. This stakeholder demands growing engagement by the public in the drafting and implementation of public projects and policy, including the effective communication with and training of local residents to work in the initiatives implemented. The priority areas for investment include education, employability of local youth, culture and tourism. In the environmental aspect, the main concern of this stakeholder is the proper disposal of solid waste and encouraging recycling.
- Local government | Identifies as a priority environmental management, particularly solid waste management and biodiversity preservation. It also recommends intensifying educational actions on sustainability in local Communities to contribute to a local culture on the topic.
- Team Members | They demand that the Company focus on safety and health management and on training Team Members to obtain higher operational productivity and consequently reward and compensate fairly its internal stakeholders. This stakeholder’s priorities also include: environmental management, mainly solid waste disposal, efficient use of natural resources and biodiversity preservation; and local development, intensifying educational and awareness actions and engaging governments and community leaderships.
If they have any questions about the rules governing ethical conduct, Team Members should seek orientation from their Leaders and, if the issue is not resolved in this way, the Company’s Compliance department. This direct and transparent dialogue among teams is one of the aspects of the corporate culture of Odebrecht Agroindustrial. In addition, the channel Contact Odebrecht Agro on the corporate website also can be used to submit questions of this kind. The Company does not have a formal registry for receiving reports of this kind.
The direct economic value generated by Odebrecht Agroindustrial amounted to R$1.7 billion. The main factors impacting this result include: 1) sales volume growth and higher average price of products; 2) higher volume of sugarcane acquired from third parties; 3) higher amortization of sugarcane fields (expansion of arable areas) and in the industrial activities (start of depreciation of the investments in expanding the Eldorado Unit); and 4) higher financial income due to the inflation adjustment of amounts receivable from the sale of energy assets and from the appreciation in the U.S. dollar against the Brazilian real in sugar export operations. With regard to economic value distributed, the main significant change is in the line Lenders, which increased 66% due to the higher average debt balance (working capital requirements) and the higher average debt cost. For more information, click here.
Statement of Value Added (R$ ‘000)
|Direct economic value generated|
|Sales of goods, products and services||3,839,623||3,220,226||2,842,855|
|Gross capital gain from sale of energy cogeneration assets||0||0||2,036,361|
|Inputs acquired from third parties||-1,666,063||-1,298,445||-972,536|
|Gross value added||2,173,560||1,921,781||3,906,680|
|Depreciation, amortization and depletion||-1,332,672||-1,050,877||-1,186,069|
|Net value added||840,888||870,904||2,720,611|
|Value added received through transfer||833,054||434,091||197,912|
|Total value added to distribute||1,673,942||1,304,994||2,918,522|
|Economic value distributed|
|Personnel and charges||836,095||819,823||838,297|
|Government and society (taxes, fees and contributions)||169,967||130,324||407,015|
|Lenders (interest and leases)||2,568,995||1,547,729||1,598,218|
|Net income (loss) for the year||-1,898,786||-1,142,156||62,642|
The construction of two overpasses near the Santa Luzia and Eldorado units contributed to the payment of approximately R$600,000 in local taxes through the contracting of Suppliers to execute the works. For more information, click here.
Odebrecht Agroindustrial does not have a formal process in this aspect, but if purchasers find Suppliers offering the same commercial conditions, they are advised to prioritize local Suppliers (from the same state in which the production unit is located). With regard to sugarcane Partners, 100% are local producers, which reduces logistics costs and increase productivity in sugarcane sourcing at the units. For more information, click here.
Odebrecht Agroindustrial generates all of the energy it needs for its operations from the burning of sugarcane bagasse and sells the surplus power. The units acquire electricity from public utilities only during the off-season. For more information, click here.
Energy generation and consumption in 2015/2016 (GJ)*
|São Paulo Cluster||Eldorado Cluster||Santa Luzia Cluster||Goiás Cluster||Araguaia Cluster||Taquari Cluster||Consolidated|
|Morro Vermelho||Água Emendada||Costa Rica||Alto Taquari|
|A. Energy generated from sugarcane bagasse||1,766,619||1,074,030||2,089,198||1,393,605||1,174,450||975,351||1,487,722||1,114,869||11,075,845|
|B. Energy acquired from the grid||3,815||22,619||2,914||2,956||8,636||5,768||7,238||1,760||55,706|
|C. Energy sold||1,188,671||662,749||1,410,345||937,037||823,539||667,809||1,094,482||773,954||7,558,586|
|Energy consumption (A+B-C)||581,764||433,900||681,767||459,523||359,547||313,311||400,478||342,676||3,572,965|
*The historic numbers was not shown because this indicator was changed at this period.
Water withdrawal in 2015/2016 (‘000 m³)
|São Paulo Cluster||Eldorado Cluster||Santa Luzia Cluster||Goiás Cluster||Araguaia Cluster||Taquari Cluster|
|Morro Vermelho||Água Emendada||Costa Rica||Alto Taquari|
*Only the data for the São Paulo Cluster were obtained from flow meters installed in the wells for withdrawing groundwater. The other volumes were estimated based on grant licenses.
Two important processes help to minimize the amount of water withdrawal by Odebrecht Agroindustrial. One is related to the nature of the Company’s Business: sugarcane is composed 70% by water, which is captured in the industrial process and used in the production phases and in the vinasse for irrigating the sugarcane fields. The other one is the recirculation of water in the industrial facilities using semi-closed circuits, using condensed steam to cool equipment and using wastewater to make vinasse. This allows the Company to guarantee an operation with zero wastewater, since the wastewater to be discharged is allocated to the agricultural area for fertigation. For more information, click here.
*Estimated amounts based on the units’ water reports, including water reused in industrial facilities and the wastewater applied with vinasse to fertigate sugarcane fields.
**The reuse percentage at the Goiás Cluster includes the water withdrawn directly for irrigation, which is why it is lower than the percentages of other Units, which do not withdraw water for such purpose. Considering only the water withdrawn for industrial facilities, the reuse percentage is 55%.
Odebrecht Agroindustrial has some planted areas located in Buffer Zones, Environmental Protection Areas (APAs) and near other conservation units:
- São Paulo Cluster: 2,480 hectares surrounding the Morro do Diabo Park and Mico-Leão-Preto Ecological Station, which are both important for preserving the Atlantic Forest. At the Ecological Station, research may be conducted with prior authorization, but the general public is not allowed.
- Eldorado Cluster: 392 hectares in Ivinhema River Lowlands APA, which aims to preserve this course of water that is relevant for the composition of the Paraná River Drainage Basin.
- Araguaia Cluster: 939 hectares in the Buffer Zone of Emas National Park. Considered a full-protection conservation unit, it was created to preserve the Cerrado biome and protect recharge areas of the Guarani Aquifer. The park is considered a World Natural Heritage Site by UNESCO.
- Taquari Cluster: 46,014 hectares in the Buffer Zones of conservation units related to the headwaters of the Sucuriú and Taquari Rivers and to Emas National Park; 4,164 hectares of planted area on the Alto Paraguai Basin APA; 29,957 hectares on the municipal APAs of the Headwaters of the Araguaia River, Ninho das Águas and Ribeirão do Sapo. All of these conservation areas are important for preserving the Cerrado biome and the region’s headwaters.
Solid waste disposal (t)
|São Paulo Cluster||Eldorado Cluster||Santa Luzia Cluster||Goiás Cluster||Araguaia Cluster||Taquari Cluster|
|Morro Vermelho||Água Emendada||Costa Rica||Alto Taquari|
The company did not receive any fines or non-monetary sanctions for non-compliance with environmental rules in the last period.
Odebrecht Agroindustrial’s environmental investments amounted to around R$24.8 million in the 2015/2016 crop year. For more information, click here.
Investment in and spending on environmental protection in the 2015/2016 crop year (R$ ‘000)*
|Solid waste disposal||1,804|
|Environmental prevention and management||22,455|
*The indicator consolidation method was altered in the period, therefore the comparable historical data is not available. The reported categories comprise the following activities: Disposal of solid waste – incineration, landfills, co-processing, outsourced waste management team; Air emissions – monitoring of boiler and kiln gases, if applicable; Environmental prevention and management – Fixed and Cash Costs of the HES team, training, licensing costs, environmental monitoring, consulting services, investments for improving processes; Remedies – costs with remediating soils, bodies of water, recovery of Environmental Protection Areas, Permanent Preservation Areas, Legal Reserves, Degraded Area Restoration Plan, etc.
All complaints received are analyzed by the Superintendent of the unit involved and submitted to the Managers in charge, who have a set period for presenting control or resolution measures. All measures are recorded in a specific system and feature engagement by various departments, often establishing dialog with stakeholders to better understand the problem and find a satisfactory solution. For more information, click here.
The workforce and employee turnover rate at Odebrecht Agroindustrial are monitored on a monthly basis. The Company has an annual goal of reducing its turnover rate, which is defined based on the previous year’s results. Employee recruiting is conducted internally and supported by the expertise of our professionals in the People & Organization department and the recommendations made by our Leaders. The Company prioritizes the launching of Team Members and the mobilization of professionals from the various companies in the Odebrecht Group, since they already know and practice the corporate values and culture. If it becomes necessary to hire professionals from the market, Odebrecht Agro advertises its opening on online portals. The profile of the opening is defined by a group of leaders from each area and does not consider gender or age criteria.
During the 2015/2016 crop year, 3,523 people left the Company, of which 2,005 were due to the reduction in the workforce due to the maturation of teams and the growing productivity of the operations. The employee turnover rate stood at 12.8%, 41% lower than in the previous year. For more information, click here.
New hires and terminations in 2015/2016*
|Number of new hires||Number of terminationss||Turnover rate|
|By age bracket|
|Up to 30 years old||741||608||5.1%|
|30 to 50 years old||597||788||6.6%|
|Over 50 years old||54||123||1.0%|
*Includes Team Members with employment contracts for indefinite periods (Team Members and Young Partners). The formula used to calculate the turnover rate is: number of terminations (except workforce reduction)/average workforce in crop year.
Average training hours per Team Member by functional category*
|Managers and coordinatorss||32.3||18.7||29.9||34.1||25.9||32.9||63.2||64.3||63.4|
|Operational/ Production workers||59.1||54.6||58.6||65.6||75.5||67.0||57.2||63.6||58.1|
In 2015/2016 crop year, Odebrecht Agroindustrial signed three Conduct Adjustment Agreements related to aspects involving the composition and election of the Internal Accident Prevention Commissions (CIPA), overtime pay and shift hours for Apprentices. The fines received in the period for noncompliance with legislation amounted to R$71,900, most of which were related to labor claims and none representing a significant individual amount.