Being Odebrecht Agro is the greatest reward for our work, it’s what transforms us. With Odebrecht Agro, I feel motivated and realized professionally. The company has given me a future filled with lots of dreams and I’ve made many true friends, it’s my second family.

Anderson Mendes

Introduction

Being Odebrecht Agro is the greatest reward for our work, it’s what transforms us. With Odebrecht Agro, I feel motivated and realized professionally. The company has given me a future filled with lots of dreams and I’ve made many true friends, it’s my second family.

Anderson Mendes

Introduction

During the 2015/2016 crop year, Odebrecht Agroindustrial delivered its best operating performance ever and set new records for production and efficiency. The competitive advantage that allowed us to deliver this performance and the challenges we faced along the way are detailed in our Annual Report. The document provides an account to all our stakeholders of the results attained from April 1, 2015 to March 31, 2016, encompassing the six Production Clusters in Brazil and considering the economic, social and environmental impacts of our industrial and agricultural activities. G4-28Click here to learn more about this aspect in the GRI Supplement

The information published was compiled through interviews with the Company's Leaders and consultations of the technical and administrative teams. Our goal with this publication is to demonstrate how we manage risks and leverage opportunities to create value and to present the outlook for the sustainable development of our business in the short, medium and long term. In keeping with best practices in the industry, the Report was prepared in accordance with the guidelines of the G4 version of the Global Reporting Initiative (GRI) and the “in accordance - Core” option. G4-32Click here to learn more about this aspect in the GRI Supplement

To contribute to a better understanding by stakeholders of our performance, the indicators and data were divided into chapters related to the six sustainability topics with the greatest relevance to the Company, as identified by our Materiality Matrix:

As in the last editions of the Report, the economic and financial data were subjected to an independent external audit. The information related to social and environmental indicators, including the responses to GRI indicators, was validated by the Company but not subjected to third-party assurance. G4-33Click here to learn more about this aspect in the GRI Supplement

The previous editions of our Annual Report, including the document for the 2014/2015 crop year published in the previous year, are available here. Questions and comments about this document may be submitted to comunicacao.agroindustrial@odebrecht.com. G4-29Click here to learn more about this aspect in the GRI Supplement G4-30Click here to learn more about this aspect in the GRI Supplement G4-31Click here to learn more about this aspect in the GRI Supplement

Materiality Matrix

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See the Material Topics for viewing Associated Risks and Actions / Initiatives.

Material aspects G4-2Click here to learn more about this aspect in the GRI Supplement

Business PerformanceBusiness Performance
Associated Risks

Improper contracting of Suppliers
Lack of planning
Non-compliance with business guidelines and procedures in the operation

Actions / Initiatives

Increasing productivity
Managing costs
Planning successful

Team Member Health and SafetyTeam Member Health and Safety
Associated Risks

Third-party services (co-responsibility with Partners)
Team Members not committed

Actions / Initiatives

Training programs
Awareness campaigns (Attitude System)
Rigorous training of Suppliers
Leadership by example

Efficient Use of Natural ResourcesEfficient Use of Natural Resources
Associated Risks

Soil and water contamination
Excessive use of vinasse
Inadequate soil management

Actions / Initiatives

Equipment maintenance
Training of teams
Use of subproducts

Environmental ImpactEnvironmental Impact
Associated Risks

Proliferation of stable flies
Excessive application of agrochemicals
Leaks (vinasse)
Fires

Actions / Initiatives

Permanent Preservation Areas and Legal Reserves
Clean energy
Monitoring of greenhouse gases
Awareness campaigns
Control of vinasse applications

Local DevelopmentLocal Development
Associated Risks

Economic dependence of the municipality
Disorganized growth
Higher cost of living

Actions / Initiatives

Job creation and income generation
Vocational training in local Communities
Structured social investment – Social Energy

Ethics, Transparency and IntegrityEthics, Transparency and Integrity
Associated Risks

Weak image
Late payments to Suppliers

Actions / Initiatives

Ethics Channel
Codes of Conduct
Communication and engagement of Team Members, Suppliers and the Community

The Materiality Matrix of Odebrecht Agroindustrial was prepared in the 2014/2015 crop year based on a specific process to engage our stakeholders. Through an online survey, we engaged 206 representatives of the following stakeholders, who were selected based on their familiarity with the Company's operations and social investment programs: Team Members, Clients, Suppliers, Civil Society and local governments. The consultation enabled us to compile the concerns and topics of interest to these groups related to sustainability management and reporting. G4-24Click here to learn more about this aspect in the GRI Supplement G4-25Click here to learn more about this aspect in the GRI Supplement G4-26Click here to learn more about this aspect in the GRI Supplement G4-27Click here to learn more about this aspect in the GRI Supplement 

In addition to engagement, the construction of the Materiality Matrix also considered a broad context of sustainability by conducting a benchmarking analysis of the sugar and ethanol industry and an analysis of the impacts and opportunities for our Business based on the Company’s corporate guidelines and commitments related to the topics of interest.

Through this process, we identified six material topics: Business Performance; Team Member Health and Safety; Efficient Use of Natural Resources; Environmental Impact; Local Development; and Ethics, Transparency and Integrity. Transversal to all topics is supply chain management, which is key to the sustainable development of the activities and businesses.

 

In addition to the Report's content, the Materiality Matrix supports improvement in our sustainability management. In the first quarter of 2016, we held internal workshops for all areas of the Company to assess potential risks, initiatives to create value within each material topic and opportunities for capturing synergies. Through this process, we engaged over 500 Team Members in discussions about the development of indicators to monitor the performance of material topics. The figure on the previous page shows the correlation between the Materiality Matrix and the potential risks and opportunities associated with the material topics. G4-2Click here to learn more about this aspect in the GRI Supplement G4-26Click here to learn more about this aspect in the GRI Supplement

We also reviewed, at the end of the 2015/2016 crop year, the aspects that are listed by GRI and associated with each topic of the Materiality Matrix in order to provide stakeholders with content that is more concise and focused on the key indicators used to manage the Company. The material aspects related to each topic, as well as the internal and external limits, are described in the GRI Supplement to this Report. G4-19Click here to learn more about this aspect in the GRI Supplement G4-20Click here to learn more about this aspect in the GRI Supplement G4-21Click here to learn more about this aspect in the GRI Supplement

 

About Odebrecht Agroindustrial

Odebrecht Agroindustrial operates in the production and trading of ethanol, sugar and bioenergy in Brazil. We are part of the Odebrecht Group and have over 11,000 Team Members at our six Production Clusters (in the states of Goiás, Mato Grosso, Mato Grosso do Sul and São Paulo), at the administrative office in São Paulo and at the corporate office in Campinas, São Paulo. G4-3Click here to learn more about this aspect in the GRI Supplement G4-5Click here to learn more about this aspect in the GRI Supplement G4-6Click here to learn more about this aspect in the GRI Supplement G4-7Click here to learn more about this aspect in the GRI Supplement G4-9Click here to learn more about this aspect in the GRI Supplement

The Company was created in 2007, and since then we have invested over R$10 billion in our nine agricultural and industrial units, seven of which were created as greenfield projects. In the 2015/2016 crop year, we concluded the expansion of the Eldorado Unit in Mato Grosso do Sul, a project whose conclusion required investment of around R$300 million and 17 months (read more here). G4-13Click here to learn more about this aspect in the GRI Supplement

Our installed crushing capacity is currently 37 million tons. Since our incorporation, we have already cultivated over 450,000 hectares, which is equivalent to three times the size of São Paulo City.

 

mapa-legenda

70%
of the electricity generated from biomassis is sold

Our products serve manufacturers from various industries in Brazil and abroad. Anhydrous ethanol (which is added to the gasoline blend) and hydrous ethanol are sold to fuel distributers, chemical producers, petrochemical producers and companies in other industries. The electricity generated from biomass (sugarcane bagasse) is used in the Company's own industrial operations and the surplus power (approximately 70% of the total output) is sold to the national grid and to energy traders in the free market. VHP sugar, which is the raw material used to make refined sugar, is almost entirely exported to 20 countries in Asia, Africa, Europe and the Americas. G4-4Click here to learn more about this aspect in the GRI Supplement G4-8Click here to learn more about this aspect in the GRI Supplement

Credits

Head of Sustainability | Mônica Alcântara
Head of Corporate Communication | Andressa Saurin
GRI consulting and writing | Usina82
Graphic design | Versal Editores
Web development | Agência Dinamite
Photography | Anderson Meneses, Eduardo Moody e Lourenço Furtado

We thank all Team Members of Odebrecht Agroindustrial who participated in the preparation of this publication.