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August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing.

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Presentation on theme: "August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing."— Presentation transcript:

1 August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing

2 2 About the SLC Group Funding of Schneider Logemann & Cia Ltda, Horizontina/RS (current SLC Group) First mechanical grain harvester industry in Brazil Funding of Agropecuária Schneider Logemann Ltda, Horizontina/RS (current SLC Agrícola S.A.) Funding of SLC S.A., Horizontina/RS Deere & Co. acquires 20% of SLC S.A. SLC S.A. became SLC-John Deere. Deere & Co. totalizes 40% of SLC-John Deere Deere & Co. acquires 100% of SLC-John Deere Funding of SLC Alimentos, Porto Alegre/RS Acquisition of Ferramentas Gerais, Porto Alegre/RS 1945 1977 1979 1996 1999 2000 2001

3 3 About SLC Agrícola 1977 1980 2007 2008 Funding of Agropecuária Schneider Logemann Ltda, Horizontina/RS (current SLC Agrícola S.A.) Beginning of the expansion towards the Middle-West Initial Public Offering - IPO Follow-On Offering SLC Agrícola has been consolidating itself as a benchmark in the global agricultural sector 1997 First cotton harvest

4 4 Strategic and Diversified Location of Farms

5 5 Growth Strategy: Planted Area (thd hectares) * SLC Agrícola estimates

6 6 Breakdown of crops: 2009/2010 Crop-year * SLC Agrícola estimates

7 7 Soybean Yields 5-Year Average: 2005/06 – 2009/10 (kg/ha)

8 8 Sustainability Serving to the most rigorous markets; Managing economic, environmental and social risks; Managing focused in improving processes; Identify, monitor and search for new solutions to reduce possible impacts caused by our operation; Enrich competition for commodities supply and prices.

9 9 Integrated Management Policys, Guidelines, Goals, Indicators NBR 16001 ISO 14001 Better Cotton Initiative RTRS UTZ Certified OHSAS 18001 PSOAL Instituto Aldogão Social Business Sustainability Intagrated Management

10 The Round Table on Responsible Soy (RTRS) is an international multi-stakeholder initiative founded in 2006 that promotes the use and growth of responsible production of soy, through the commitment of the main stakeholders of the soy value chain and through a global standard for responsible production. The Association distinguishes between Participating and Observing Members. Membership is open to actors of the soy value chain and civil society who may apply to become a Participating Member in one of these three constituencies: Producers, Industry, Trade & Finance, Civil Society Organizations. 10 RTRS - Round Table on Responsible Soy

11 RTRS - Organizational Chart 11

12 RTRS - Goals Promoting a global dialogue on soy that is economically viable, socially equitable and environmentally sound. Reach consensus among key stakeholders and players linked to the soy industry. Act as Forum to develop and promote a standard of sustainability for the production, processing, trading and use of soy. Act as an internationally recognized forum for the monitoring of global soy production in terms of sustainability. Mobilize diverse sectors interested in participating in the Round Table process. Add on recently Principles & Criteria EU RED to biofuels in the plataform 12

13 RTRS - Timeline 13

14 There are 5 Principles with 27 Criteria covering the following disciplines: (1) Legal Compliance and Good Business Practice. (2) Responsible Labour Conditions. (3) Responsible Community Relations. (4) Environmental Responsibility. (5) Proper Agricultural Practice. The RTRS counts with 141 members in 20 different countries; In order to obtain recognition from the European Commission for the EU-RED (Directive of Renewable Energies), the RTRS will submit its application in the first round, once the Commission begins the process of evaluation of voluntary standards. For that objective, the RTRS Biofuels Working Group developed an EU-RED add-on. The add-on contains all requirements of the directive, and will be optional for those farmers that produce soy for biofuels to be exported to one of the European Union member states. 14 RTRS – Principles and Criteria

15 15 SLC Agrícola & RTRS 2008: SLC Agrícola as an effective member; 2009: SLC Agrícola as an effective member in Board (Management 2009/10); Actively participating on the below technical groups (2009/10): *International Technical Group (ITG) *International Technical Verifying Group (ITVG) P&Cs Legal Compliance and Good Business Practice Responsible Labour Conditions Responsible Community Relations Environmental Responsibility Proper Agricultural Practice P&Cs Legal Compliance and Good Business Practice Responsible Labour Conditions Responsible Community Relations Environmental Responsibility Proper Agricultural Practice

16 16 SLC Agrícola & RTRS Stakeholders New Markets Management Improvements Processing Improvements

17 RTRS – Main Highlights (P&C) PrinciplesMain Dificulties 1 Uncertainties Brazils current legistation; Land Ownership situation in Brazil; 2 Complying with working journey in pick periods (planting, handling and harvesting); 3 Precariousness in historical data obtention to construct social and economic profiles of our communities and races; 4 Compliance with Brazilian Forestry Code x and identification of HCVA in property levels; Definitions politics to Payment for Enviromental Services (PES); 5 Consolidation of crop rotation concept; Restrictions to chemicals usage x eficiency in sustainably replacing them; 17

18 RTRS – Implementing Process 18 Internal Auditing (Effectiveness and Correcting Actions) Continuing Progresses (Objetives and Goals) Execution ( controlling tools and intruments ) Detailed Schedule ( Gap Fulfillment) Detailed Schedule ( Gap Fulfillment) Initial Diagnose (RTRS Protocol)

19 RTRS – Implementing and Handling P&Cs 19 Soybean Producing Impacts Applicable Law Definition of Requisites Definition of Procceeds And Operational Controls Definition of Metrics and Indicators Compliance with Law Identifing Opportunities of Improvement Definition of Goals Definition of Management Plans

20 20 RTRS – Lesson Learned In the future there will be no agriculture without sustainability practices; Certified Agriculture. P&C compliance will take land owners to a better property; Cost reduction perspective in middle- terms; Sustainability will guarantee best results in the long term.

21 21 RTRS – Challenges in Producers Optics Instigate consuming markets do get only certified soybean; Establishments that allow RTST recognition; Plan to establish payment measures to environamental services; Plan to help producers to join RTRS methods (steps 1,2 e 3); Capacitate operacional working-force.

22 Investment in Improvements USD 640,751,00

23 Thank you alvaro.dilli@slcagricola.com.br + 55 (51) 3230 77 90


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