Sustainable Management Report 2020

This report has been prepared in accordance with GRI Standards: essential option, and verified by Deloitte Asesores y Consultores Ltda. in order to ensure the transparency, quality and scope of the information reported.

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Alianza Team® – Who we are and where we’re headed

President’s Message:

[102-11; 102-14]

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Looking back, we realize how much we have achieved. 2020 brought with it challenges that left us with great lessons: we understood that innovation, commitment, passion and teamwork are fundamental in our path towards growth, always keeping our purpose of nurturing a better tomorrow.

We are aware that we are not alone and that we must work every day to make Alianza Team one of the most sustainable companies in the global food industry. Our purpose inspires us daily to generate new solutions, products and business models that are sustainable and have a positive impact on our environment. Each action plan we advance demonstrates the organization’s commitment to the four things that matter to us: our shareholders; our customers, suppliers and consumers; sustainability; and our people.

At Alianza Team®, we decided to face last year with optimism, resilience and courage. Therefore, we strengthened our business by seeking new ways and alternatives to stay close to our customers and consumers, finding new opportunities for growth that would allow us to leave a better world for future generations.

In this way, from different fronts we have made sustainability one of our corporate flags. Therefore, in 2020 we highlight raising awareness of our Policy Guidelines for 91% of palm suppliers, aligning our corporate principles and values throughout our value chain; the completion of the diagnosis of materials and packaging carried out in Mexico, which allowed us to identify opportunities to reduce, reuse or recycle our materials and, additionally, the launch of the first bottle with 100% post-consumer recycled material (PCR) – Gourmet® Frito Experto in Colombia.

Also, in our quest to positively impact the environment in which we operate, we expanded the scope of the Team Foods circular economy program, relaunched the Verde de Corazón environmental culture campaign in Colombia and Mexico, and thanks to innovative initiatives such as Manos que Alimentan and #MeSumo, among others, we were able to benefit approximately 10 million people this year.

In 2020 we obtained satisfying results in S&P’s annual corporate sustainability assessment, the basis for the Dow Jones Sustainability Index. In the food industry, we ranked 24th in the world and 4th in Latin America, 26 points above the global industry average, improving our previous score.

This would not have been possible without our Talent. For us, the work done by each of our employees has been invaluable, and thanks to their commitment, innovation, resilience, passion and agility, we were able to achieve a positive impact on our environment and the communities where we operate.

We are sure that in 2021 there will be hundreds of experiences that will make us better, more innovative and that will allow us to continue to grow, always operating under the highest quality standards and best business practices. Likewise, we will reach our goals having clear corporate principles with which, without a doubt, we will nurture a better tomorrow and leave a better world for future generations.

Luis Alberto Botero.

President & CEO Alianza Team®

[102-15; 102-4; 102-6; 102-3; 102-7; 102-8; 102-41; ]

Alianza Team® is a Colombian company that was born from the union of six of the most traditional companies in the production of vegetable oils and fats in the country, with a history of more than 70 years in the lipid sector, and is currently expanding in the Americas. We work to develop different and relevant products, services and technological solutions, where the lipid and the brand make the difference, from nine different businesses organized in three strategic groups.

Total Alianza Team: men 1638 and women 665

2303 employees; 28.9% women; 38.6% covered by collective bargaining

[102-44; 102-46; 102-47]

Driven by our corporate purpose to nurture a better tomorrow, we work every day to leave a better future for the next generations, contributing directly and indirectly to 12 of the Sustainable Development Goals and 30 of their specific targets. Last year we adjusted our materiality in light of major changes in both our internal and external context, as well as to better align with the needs and expectations of our stakeholders, to have 10 prioritized material issues on which we focus:

Innovation, research and development capabilities
Supply chain assurance (ESG compliance & traceability)
Supplier development
Occupational health and safety
Packaging and materials
Circular economy initiatives
Operational eco-efficiency
Partnerships for development
Risk, HR & Compliance
Profitable Growth

By 2030, we will be a globally open company, with a special focus on North America and Asia, carbon neutral, have 100% of our agricultural supply chains assured in environmental, social and governance (ESG) standards, continue to strengthen our science-based technological solutions, and develop high-impact social programs in all countries where we operate for our employees and communities to continue adding value through profitable growth over time.

We will continue to work to nurture a better tomorrow, measuring our progress with the S&P Corporate Sustainability Assessment, basis for the Dow Jones Sustainability Index. In the 2020 results, we were ranked 24th in the world and 4th in Latin America in the food industry, with a score 26 points above the industry average, which fills us with satisfaction and motivation to continue advancing. This would not have been possible without the genuine concern for a positive social and environmental footprint shown by our shareholders, Board of Directors and employees, which of course ratifies our commitment to make Alianza Team® one of the most sustainable companies in the world and a benchmark in the field.

Alianza Team® Culture:

[102-16]

Our corporate culture guides the behavior and actions of our people focused on the four things that matter to us, with four key premises that maximize our economic, social and environmental results and contribution:

Our customers, consumers and suppliers, our people, sustainability and our shareholders.
We are agile and innovative; we are allies in making a difference; we are safe, reliable and transparent; and we are optimistic and entrepreneurial.

Isabel Giraldo

Sustainability Manager

Along with our corporate principles and values, we share through our Policy Guidelines our main commitments that guide our corporate actions throughout our value chain.

Corporate risk management:

[T18]

The global crisis generated by Covid-19 influenced the way we operate, transforming some of our processes in a profound way. This opened up new possibilities but also brought new risks and accentuated existing ones. We adjusted our monitoring methodology to adapt to virtuality, while maintaining a periodic review and follow-up of operations. By analyzing trends, we identified emerging risks and adjusted valuations in light of the changes generated by the economic situation. Four new risks entered the Top 20 list by increasing their criticality and therefore their potential consequences: changes in macroeconomic variables, biological risk, portfolio deterioration and crisis events in neighboring industries and/or communities. Even so, the residual risk for Alianza Team® remained moderate, evidencing the effectiveness of the controls and action plans implemented. With intense and constant teamwork, we adopted the necessary measures and implemented the corresponding controls to mitigate the effects of the changes experienced in 2020. During 2021 we will redouble our management and presence in each of our operations to be more prepared to face the new challenges that the future will bring.

Top 20 Risks in terms of criticality (Inherent risk)

Changes in macroeconomic variables

Market price fluctuations

Shifts in consumer and client preferences

Business interruptions

Natural Disasters

Biological Risks (Epidemic/Pandemic/Virus)

Changes in food and environmental regulations

Legal requirements for facility operations

Raw material scarcity

Asset portfolio deterioration

Explosion/Fire

Data hacking or Cyber – Attack

Failure to adapt to digital environment (Digital Transformation)

Inventory contamination (MP-PP-PT)

Public Risk

Labor strike

Inadequate facility maintenance management

Industry and/or community crises

Labor Accidents

Entry of major players into the market

Inherent risk: risk level without taking into account control measures or activities established for its mitigation.

Economic value generated and distributed:

[T19; T20; 201-1]

Maipú Facility Alianza Team® Chile

Over the past five years, Alianza Team® has continued to generate value for its stakeholders, increasing distributed economic value by 31% thanks to a 45% increase in revenues. The economic contraction generated by the Covid-19 pandemic during 2020 affected some of our businesses and allies significantly, but also accelerated trends and brought opportunities in others. This caused profitability and EBITDA results not to be as expected. However, through agile management, with flexibility, synchrony and the full support of the Board of Directors, the company prioritized the safety of employees, support for the communities where we operate and business continuity to recover the expected levels of profitability with a consolidated growth in sales of 10.3% compared to 2019, demonstrating the resilience that characterizes us. We highlight a 75% increase in investments in the community, demonstrating our commitment to be true allies for development in the areas where we are present.

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Cahpter 1

What we do

Chapter 2

What and who we do it with

We work hand in hand with our suppliers to ensure compliance with high social, environmental and quality standards throughout our supply chain.

Go to chapter 2

Chapter 3

How we do it

Our people and processes are at the core of our operation, seeking to ensure safety, quality, development, well-being and positive impact in everything we do.

Go to chapter 3