sustainability report 2016-2017 - racafe · report 2016-2017. where we operate and where ... we are...
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We contribute to sustainable development in our country creating value in all our relationships.
www.racafe.com
SustainabilityReport2016-2017
Where we operate and where we sell our coffee
ECO
NO
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AS
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OC
IAL
AS
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TSEN
VIR
ON
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TAL
AS
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2017 launched the Center for Creation and Development of Products 3/37Eval
uate
d an
d ce
rtifi
ed b
y EC
OCE
RT 2
600
0 u
nder
ISO
260
00
, the
inte
rnat
iona
l sta
ndar
d on
CSR 64
years of experience in the market MILLING PLANTS
8 Reached
MARKETshare
DispatchedTRUCKSGlobal
91 ports2016
2017 2016
2017
1.78%
1.51%1,660
1,8142016
2017
2016 982017 108
2016 392017 41 98
ports
(35 ton)
Coffee bags sold (60 kg)
2016
2017
1,541,670
1,505,445
33%
28%
67%
72%
COLOMBIA EXPORTED
Number of bags sold from regional programs and direct relation,
certified and verified
2016
2017
210,859 bags (60 kg)
368,661 bags (60 kg)
Clients in
ColombiaParticipation in the Colombian
MARKET
2016
2017
182
1862016
2017
10.8%
10.6%
Producersin the direct
trade network
2016
2017
3,521
5,029
Certified and verified
producers
2016
2017
1,139
2,463
Trainedproducers
2016
2017
381
1,457
We buy in
Municipalitiesin Colombia
Localassociations
and/orintermediary
groups
2016
2017
235
218
2016
2017
24
36
Employees
2016
2017
84
90122
130
in
InternationalCLIENTS
Countries
Bonuses paid over differentiated coffee
2016
2017
9,540 million COP
10,479 million COP
Greenhouse gases(GHG) emission
2016
2017
2.4 Kg CO2 - e / bag
2.3 Kg CO2 - e / bag
ENERGY consumptionper bag of coffee
2016
2017
4.39 (Kwh year/bag)
3.98 (Kwh year/bag)
Coffee contributioncollection
2016
2017
25,276 million COP
25,534 million COP
2,299 million COPENVIRONMENTAL INVESTING
2016 - 2017
Who we areWe are one of the main coffee traders in Colombia, dedicated to the purchase, milling, trading and product development of green coffee. We support responsible consumption of coffee by integrating sustainability principles in our management that guide our decisions and contribute to the improved perfor-mance of our organization.
POPAYAN
NEIVA
BOGOTAARMENIA
BUCARAMANGA
MEDELLIN
PEREIRABUENAVENTURA
CARTAGENA
SANTA MARTA
We promote differentiated coffeetrading
· 4C· C.A.F.E. Practices· Rainforest Alliance™· UTZ Certified· Fairtrade
· ECOCERT· Regional coffee· Farm coffee· Special coffee per cup
· Consumo and Pasilla (traditional lower grades)· Excelso for export· New Product of Colombia qualitities
1,505,445 coffee bags sold by 2017
Number of bags sold (60 kg)
TRADED PRODUCTS
2016
2017
175,376
331,252
35,483
37,409
1,330,811
1,136,784
Certified and verified coffees
Conventional coffees
Coffees from regional programs and from direct relations
We promote sustainability in the supply chain through the fulfillment of the following standards:
CERTIFICATES WITH PRODUCT
LABELS
VERIFICATION OF SUPPLY CHAINS
SOCIAL RESPONSIBILITY AND GOOD BUSINESS
PRACTICES
· Cedex
We issued the sustainability report for the period 2016 - 2017 following the GRI (Global Reporting Initiative) methodology. We identified the key issues for our stakeholders and the organization. As a result, we present the materiality matrix.
Sustainability
Rel
evan
ce f
or i
nter
est
gro
up
s
ME
DIU
MLO
WH
IGH
Importance for the organization
MEDIUMLOW HIGH
Materiality matrix
SOCIAL
ENVIRONMENTAL
ECONOMIC
MATERIAL TOPICS· Product quality· Economic performance· Involvement with the producers· Health and safety of the collaborators and contractors· Waste management· Company-worker relationship· Use and efficient saving of energy· Good Corporate Governance· Relationship with suppliers and contractors· Atmospheric emissions and noise
Relevant topics related to sustainability in the following areas:
Contribution to the Sustainable Development Goals
We have incorporated the 11 principles of our sustainability policy. At the same time, we identified the contribution of our projects in the Sustainable Development objectives, actions and achievements. In addition, during the years 2016 and 2017, we worked to respond to the material issues that create value in the relationship with our groups of interest.
CONTRIBUTION
· We promoted sustainable agriculture. We increased the number of certified and verified producers, 1,139 for 2016 and 2,463 for 2017.· We provided training in the supply chain for the respect of human rights to eradicate practices such as forced or child labor and led actions to adapt to climate change. We trained a total of 1,457 farmers in 2017.
· We are oriented toward a model of inclusive business to reduce poverty, while maintaining the economic viability of the company. We distributed 96% of the economic value generated in the 2016 and 97% in 2017.· We train farmers in good agricultural practices and in the standards they can apply into actions for the development of sustainability in the coffee sector. Training reflected an increase of 24% compared to the previous year.· We contribute to the economic development of communities and conduct fair and timely payments to producers. There was a 10% increase from 2016 to 2017, of the bonuses paid for differentiated coffees to producers.
· We guide our conduct and actions through the core values.· We developed the second sustainability report, following the GRI methodology.· We established strategies to develop partnerships with other actors.· We implemented rules that mitigate fraud with our SIGRACAFE system.· We ensure the transparency of our operations. We launched our ethics line in 2017 and trained 100% of our collaborators.· We adopted the BASC standards for the verification of our suppliers.· We received a recognition in the year 2017 from the Colombian American Chamber of Commerce AMCHAM for our stated commitment to transparency and the fight against corruption.
· We innovated and developed actions of optimization with sustainability criteria. We invested 2,034 million COP in new optical sorting machines with the latest new technology.· We give priority to the allocation of economic resources in accordance with our long-term vision. Between the period 2016 - 2017 we conducted total investments in infrastructure and new technologies for a value of 6,592 million COP.
SUSTAINABILITY POLICY
PRINCIPLE
MATERIAL SUBJECT
· Integration of sustainability (shifting towards the whole value chain)
· Strategy and procurement policies
· Responsible local purchases
· Creation of value for the communities in which we operate
· Involvement with producers
· Ethics and responsibility in business
· Transparency in communication and accountability
· Good corporate governance
· Fight against corruption
· Financial strength and long-term approach
· Economic performance
SDG
· We provide our collaborators the opportunity to develop their careers under equal conditions.· We acknowledge the work of our partners by providing benefits. During 2016 our company awarded 1,536 million COP and during 2017, 1,595 million COP.
· 80% of our collaborators received regular assessments of their performance and professional development.· Through the Seedlings Plan we trained new generations. 2 managers of milling plants became part of this training plan.· We promoted professional development among our staff.· We provided education benefits for 425 million COP during 2016 and 438 million COP during 2017.
· We increased the number of certified and verified coffee from regional programs and direct relationships by 75%, during 2017.· In 2017 we opened the Center for Development and Creation of Products 3-37, as a space of constant learning for our clients, and for the creation, research and development of our products.
· We make proper management of solid waste in each one of the milling plants.
· Decreased by 9.3% the consumption of energy per bag of milled coffee.· In 2017 we signed a project contract for photovoltaic energy.· We maintained the environmental management system and developed mitigation and prevention strategies.· We conducted environmental investments for 2,299 million COP for the period 2016 - 2017.
· We measured the carbon footprint of our organization to establish goals and implement strategies to reduce CO2 emissions for the short and long term.· We incorporated new technologies that improve energy efficiency in the process. We invested in machinery, 526 million COP during 2016 and 3,081 million COP during 2017.· We began operations in the new Neiva milling plant during 2016.
· We carried out training with producers to preserve the natural conditions of their environment.· We promoted the fight against climate change and the proper use of resources throughout our supply chain. We donated 2,149 trees to the community in 2017.
· We promote health and safety in the workplace, assigning a budget of 200 million COP.
· Good labor practices
· Respect for fundamental human rights
· Worker- company relationship
· Diversity and equality
· Good labor practices
· Customer service
· Innovation
· Product quality
· Caring and commitment with the environment
· Waste management
· Caring and commitment with the environment
· Savings and efficient use of energy
· Caring and commitment with the environment
· Atmospheric emissions and noise
· Caring and commitment with the environment
· Biodiversity
· Land use
· Good labor practices
· Health and Safety of its employees and contractors
· We cooperate in the sustainable development of the local economy. We increased our network of direct marketing, from 3,512 producers in 2016 to 5,029 producers for 2017.· We provide knowledge in our supply chain. We implemented the first phase for the improvement of coffee drying with 21 producers.
· Dialog with interest groups
· Relations with suppliers and contractors
· Professional development
· Training and employee training
Through the various activities derived from our direct relationship with producers and customers, we are responding to their interests and expectations. Before a globalized market, our greatest contribu-tion to the supply chain is the integration and establishment of a relationship between Colombian coffee producers and the national and international coffee industry.
We create value
“
We are a bridge between Colombian producers and the coffee industry around the world. ”
Our operations
We have the capacity to offer
from 1 to more than 1,5 MILLION
bags per year, tailor-made to our
clients’needs
PRODUCERS
TRADING
PURCHASE
PARCHMENT COFFEE RECEIPT
· Batch assignment· Milling order· Sending samples
MILLING
INDUSTRIAL PROCESS IN THE MILLING PLANT
· Dispatch instruction
TRANSPORT
· Boarding notice
DELIVERY AT FOB PORT
DELIVERY AT CLIENT’S PLANT
RECEIPT FROM CLIENT
· Commercial transaction
· Boarding instruction
We are green coffee traders
Based on the commitment that we have within the supply chain we continue to grow our business supported by our processes of risk management, internal control, and the adoption of International Financial Reporting Standards (IFRS).
Generated economic value
For the year 2017 we maintained an increase of the generated and distributed economic value, thus contributing to the profitability of our business and the growth of our collaborators, producers and other actors in the value chain.
Commitments· Continue to expand the participation of different interest groups through relationships building.· Reduce the consumption of energy in the milling plant per bag by 5%.· Prioritize and align all sustainable development goals (SDGS).· Reduce and offset greenhouse gases emissions by 5%.· Manage the sustainable mobility project in Racafé’s main office.· Manage 1 project for energy generation and energy efficiency.
Sust
aina
ble
deve
lopm
ent
man
agem
ent
· Development and consolidation of "cross-docking" project with a budget of 7 days storage.· Increase the efficiency percentage in freight, to a value between 88% and 93%.· Trading development of new exportable coffee qualities.· Build new origin coffee programs.Co
mm
erci
al
logi
stic
s m
anag
emen
t
GENERATED, DISTRIBUTED AND RETAINED ECONOMIC VALUE
2016 2017ECONOMIC VALUE*
100% $816,212
99.47% $811,859
0.53% $4,353
100% $829,801
99.52% $825,796
0.48% $4,005
Generated
Distributed
Retained
2016 2017DISTRIBUTED
ECONOMIC VALUE*
*Data in COP million
WE SHARE OUR PROGRESS
Operationalcosts
Collaborators salaries and benefits
Payments tocapitalproviders
Investment in the community
Governmenttaxes
$794,734
$16,227
$6,865
$6,896
$1,074
$781,253
$15,741
$7,422
$6,599
$844
· Increase support with producers in the improvement of the drying process, with at least 30 solar drying modules.· Continue with the implementation of voluntary standards of sustainability. Reach at least 50% of the producer’s network.· Identify and promote at least 10 sources with potential for differentiated coffee production.· Increase the bonuses paid for differentiated coffees.Pr
oduc
ers
man
agem
ent
in
the
supp
ly c
hain
· Implement measurement models that will make it possible to monitor the mobilization process productivity in the milling plants.· Develop a Seedlings Plan to ensure the competence of at least 3 collaborators who could replace the manager of each milling plant when they retire.· Implement teamwork workshops in the milling plant.· Develop a training plan geared towards the core competencies of each job.
Hum
an t
alen
t m
anag
emen
t
· Financial strength.· Competitiveness of resources.· Continue with profits growth through greater differentiation.· Keep the management strategy to minimize financial risks and ensure the financial sustainability in the long term.· Increase the production capacity of the milling plants reaching the goal of 150 bags/hour, through the improvement of processes.
Econ
omic
- fi
nanc
ial
man
agem
ent
· Implement the safety and health management system at work on the basis of continuous improvement in 100% of the branches of the Company.· Implement a program of accident control to decrease by 50% risk events caused by storage.
Hea
lth
and
safe
ty
man
agem
ent
at w
ork
· Strengthen good manufacturing practices and improving processes to ensure food safety conditions in coffee.· Implement the rules of the "Food Safety Modernization Act" - FSMA.
Qua
lity
man
agem
ent
and
prod
uct
deve
lopm
ent
· Maintain our relations with the customers and suppliers that evidence good behavior in Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT), guided by BASC rules.· Obtain the certificate of Authorized Economic Operator, in order to strengthen the confidence and security of our company within the supply chain, being internationally recognized.· Report the follow-up results of the cases reported in the ethical line.
Risk
man
agem
ent
and
inte
rnal
con
trol