CH 1 - WE ARE ALLIES IN MAKING THE DIFFERENCE

Commitment 1: We are allies in making the difference

Ensure 100% of our agricultural supply chains in environmental, social and governance standards.

[102-9; 204-1]

The first front of the 2030 Ambition of Alianza Team® consists of ensuring compliance with environmental, social and governance criteria (ESG) in all our agricultural and livestock chains, understanding that these represent the main focus of our attention and are where there are greater opportunities to generate a positive impact, so with the implementation of the Responsible Sourcing Strategy we seek to address both opportunities and challenges to work together with our partners and thus make a difference.

Corporate Finance and Procurement team

It is important to mention that the organization’s purchasing categories (lipid raw materials, packaging materials, inputs and ingredients, non-productive elements and administrative services) are supplied by approximately 2,800 suppliers. Lipid raw materials represent almost 90% of the cost of our products, followed by inputs and ingredients, which represented almost 5% of the cost for 2021.

ACCOMPLISHMENTS

AVANCES DESTACADOS

Alianza Team® Responsible Sourcing Strategy

Strategically address both opportunities and challenges to work together with our partners to make a difference. This strategy dictates the route for the fulfillment of our environmental and social commitments stated in the Alianza Team® Policy Guidelines in our own operations and along the value chain. We have defined 3 key fronts for compliance:

Viviana Baquero

Sustainable Supply Chain Leader in Alianza Team®

1. Supply Chain Monitoring and Verification System (SMYVC).

[T4][T5; 102-17]

We understand where we must focus our efforts, time and resources from the source of supply, in order to work together with our allies (direct and indirect suppliers, NGOs, government and others) and make decisions that allow us to secure our supply chains.

See our results

We identify and manage the risks associated with our chain, seeking to ensure 100% of our agricultural supply chains meet ESG standards (environmental, social and governance) by 2030.

Achievements 2021

Implementation of our SMVYC in 100% of our direct palm suppliers in Colombia, Mexico and Chile.

Successful verification of SMYVC suitability by an independent third party: Earthworm Foundation.

Establishment of the supplier follow-up and monitoring strategy, based on SMYVC results.

In partnership with Earthworm Foundation and it’s team of geomatics experts, we initiated the independent verification of our NDPE commitment, with the application of Starling (a satellite tool that monitors forest cover change), for the management of risks associated with deforestation.

2. Supplier management plan.

[T5]

We develop long-term alliances maximizing the value for all, keeping sustainability as a transversal axis in everything we do. We know that alone we cannot generate the change we seek with our stakeholders, therefore, and particularly with our suppliers of raw materials, we work together in the promotion and adoption of practices that allow the protection of soil, biodiversity and livelihoods that promote the resilience of smallholders, strengthening communities through the implementation of different projects and strategies:

See our results

We are development partners along the value chain.

Pablo Alzate

Supply Chain Director at Alianza Team®

Achievements 2021

We accompanied Extractora Sur del Casanare in the characterization, evaluation and management of the sustainability risks of the 92 smallholder suppliers that are part of its chain, with the support of Proyección Eco-Social foundation.
We continued working with Palmas del Cesar to certify 100 fruit suppliers under the RSPO smallholder standard.
We developed the Alianza Team® implementation manual, with the Peterson consulting firm, to ensure that soybeans are deforestation-free from the procurement and milling process with Refinería Segregada for an exclusive production line in Chile.
In alliance with B Corp, we initiated the diagnosis of the environmental, social and economic performance of more than 1,200 suppliers in different purchasing categories in Colombia, Mexico and Chile.

Results of the Voluntary Agreement for Zero deforestation in the palm oil chain in Colombia.
Sustainable food production is possible.

The Zero Deforestation Agreements are the voluntary commitment of agribusiness, national government and civil society organizations to stop the deforestation of forests and moorlands in Colombia.

Colombia is one of the largest palm producers in the world, and has initiated the path towards sustainable production with zero deforestation. In this activity that distinguishes it from other countries, the results of the baseline of the Institute of Hydrology, Meteorology and Environmental Studies of Colombia (IDEAM), the entity in charge of studying the environment in the country, reflect the sector's commitment to sustainability by verifying that deforestation caused by palm oil is only 0.4%, ensuring that the palm sector is not a promoter of deforestation in Colombia.

3. Corporate Volunteering Aliados Somos +

A year and a half reaffirming that we are allies for development.

The organization's call to share knowledge and experience, while generating development opportunities, has allowed us to continue with corporate volunteering, working with academia, the organization's volunteers and our key suppliers to make a difference.

See our results

We understand the challenges of our supply chains and offer value opportunities

In 2021, we confirmed that working together with our strategic allies and assertive communication have allowed us to anticipate the needs and expectations of our stakeholders, understanding the impact we have on our value chain and, in turn, finding opportunities to address complex issues that allow the development of agriculture in an ethical and responsible manner and the construction of a better world.

In 2021 we closed the third version of volunteering, reflecting the essence of our organization, generating value for our people and the value chain.

We developed long-term alliances to share best practices in economic, environmental and social issues with the organization's strategic suppliers, with 4 universities in Colombia and Mexico. To date, we have reached:

More than 88 individual work sessions with suppliers
1,253 hours of work
The participation of 60% of our critical suppliers of lipid raw materials at corporate level.
Included new inspiring volunteers such as Solidaridad and CECODES.

Click on the section you are interested in to continue:

Chapter 1 WE ARE ALLIES IN MAKING THE DIFFERENCE

We ensure compliance with economic, environmental and social criteria in all our agricultural and livestock chains by working together with our allies to make a difference.

Go to Chapter 1

Chapter 2 OUR PLANET

We work every day to leave a better world for future generations; we are on the road to becoming carbon neutral by 2030.

Go to Chapter 2

Chapter 3 OUR PEOPLE

We believe in people, their talent and their potential, and committed to programs in health, housing, education, entrepreneurship and food security, we will achieve the comprehensivel development of our people.

Go to Chapter 3

Chapter 4 TRANSFORMING THE MARKET

We reach homes with relevant and differentiated solutions through brands that generate a positive impact, leveraged by our people, innovation and sustainability.

Go to Chapter 4