Scope 1 Emissions
2022 Communication on Progress
Lavoro Agro Holding S.A.
Published date
June 29, 2022
No. of questions
66
Supplemental files
22-09-2020-Codigo-de-Conduta-e-Etica.pdfRAS_Lavoro_2020_rev13.pdfPolitica_Sustentabilidade-1.pdfCEO Statement
Governance
Policies and Responsibilities
1. Does the Board / highest governance body or most senior executive of the company:
Optional commentThe Lavoro Group is a privately held company, the board of advisors actively participates in guiding management and company strategy, but does not manifest itself on behalf of the company.2. Does the company have a publicly stated commitment regarding the following sustainability topics?
3. Does the company have in place a code of conduct regarding each of the following sustainability topics?
4. Has the company appointed an individual or group responsible for each of the following sustainability topics?
Optional commentThe Lavoro Group Code of Conduct is a widely publicized document. It needs to be signed by employees, direct and indirect suppliers, customers, and those who have commercial and institutional relations with the company.5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?
Optional commentthe above topics are addressed in the risk committees, ESG, and during monthly board and board meetings.Prevention
6. Does the company have a process or processes to assess risk?
Optional commentThere are risks related to these four themes mapped in the matrix of operational, regulatory, and financial risks of the business, and are treated according to the prioritization of the materiality matrix carried out for Lavoro group companies.6.1. During the assessment of risk, which business relationships are reviewed?
Optional commentIn agribusiness, ESG risks are more present in the customer's chain, rural producers. This relationship has been continuously improved, considering social and environmental aspects, and modulates essential activities, such as credit granting.7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?
Optional commentThe due diligence process for M&As processes (inorganic company growth) and organic market expansion includes, from the outset, socio-environmental assessment.7.1. During the due diligence process, which business relationships are reviewed?
Optional commentOn human rights, violations can occur in the activities of direct customers (farms), and for this stakeholder, we have an annual evaluation process. In our own operations, there are no high risks of human rights violations by the nature of our activities (product distribution), and the most relevant direct suppliers are large multinationals, very regulated, and they already adopt practices superior to our practices.Concerns and grievance mechanisms
8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?
Optional commentWe have an independent transparency channel and ombudsman, where all communication of sensitive topics and complaints can be made, with anonymity if employees and customers need it.8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.
9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?
Optional commentThere is still no structured process. On the other hand, the company has not yet experienced a situation that required redress to any complaint received or materialized negative impact.Lessons
10. How does the company capture lessons regarding each of the following sustainability topics?
Executive Pay
11. Is executive pay linked to performance on one or more of the following sustainability topics?
Optional commentOur ESG Targets, bases on references such as SDG and GRI, are being formalized in 2022, with a follow-up cycle until 2025. The executive compensation based on ESG performance will be discussed for potential implementation in 2023.Board Composition
12. Percentage of individuals within the company’s Board / highest governance body by:
Optional commentLavoro is a privately held company, we´re building better governance each year, and improvements will be adopted in the next 3 years, including having at least 30% of women board members until 2025.13. Do you produce sustainability reporting according to:
Data Assurance
14. Is the information disclosed in this questionnaire assured by a third-party?
Optional commentIn 2022 we´ll publish our second GRI report, and we´re improving data quality to get the third-part assurance in the next two years.Human Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Optional commentThese issues were identified in our materiality process of investigation.Response
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
The health and safety program at work was improved in 2021, with the adoption of more specific indicators, such as risk per kilometer for employees who drive vehicles. New training and a campaign to create a safety culture has been delivered. In 2022, we started a diagnosis to understand whether there are unjustifiable gender pay differences in the group's companies. Among the ESG targets, to be launch in 2022, we´ve included objectives and indicators related to the four HR themes listed in HR1.Labour
Commitment
1. Does the company have a policy commitment in relation to the following labour rights principles?
Optional commentDocuments were uploaded in the Governance session.1.1. For each labour rights policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?
Optional commentWe´ve carried out a formal engagement with the pesticide industry to reinforce safety issues in the use and handling of chemical pesticides with Lavoro's customers in the field.3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?
4. Who receives training for the following labour rights issues?
Optional commentFor the subjects of Forced Labor and child labor specific training is provided for the Compliance and Credit analysts, teams who deal with these topics during clients' background checks. Basic safety training is mandatory for our activities, but we´ve been improving our OSH management, and several campaigns and extra training and capacitation are offered to employees and clients each year.5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?
Optional commentThe company has established target goals for these three topics among ESG Corporate TargetsPerformance
6. What is the percentage of employees covered under collective bargaining agreements?
7. What is the percentage of employees in a trade union or other workers' organization?
8. In the course of the reporting period, what was the percentage of women in:
Optional commentThe company has established target goals for these topics among ESG Corporate Targets, we expect to achieve 30% of women on board seats and 30% in senior leadership by 2025.9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?
Optional commentThe calculation method of the salary ratio M/F is being improved at the company, as functions and positions are not standardized yet. We will improve our method over the next 12 months and have a goal of zeroing the unjustifiable M/F wage gap by 2025.10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?
Optional commentWe don't use this kind of measure yet, but we observe the absolute number of occurrences by region each year, taking action plans when necessary.11. In the course of the reporting period, what was the company’s incident rate?
Optional commentWe don't use this kind of measure yet, but we observe the absolute number of occurrences by region each year, taking action plans when necessary.Response and Reporting
12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?
13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
principle 3: We have no additional challenges in this theme. Brazilian legislation is very clear about membership rights, and all are fulfilled by the company. principle 4: in 2021, after a socio-environmental diagnosis, we found the occurrence of forced labor risk in our value chain is very little. although, in 2022 an automatic monitoring system was implemented, which identifies whether farmers are involved in any cases of work analogous to slavery, using public data captured by artificial intelligence. principio 5: in 2021, after a socio-environmental diagnosis, we found the occurrence of child labor risk in our value chain (among farmers) is very little. But, we have a monitoring system to identify whether any clients are involved in lawsuits involving child labor, or risk. This information is checked annually. There is, however, no check-in in rural areas. principle 6: we have not recorded cases of discrimination in the period covered by the report. However, we know that racial, sexual, and gender diversity are a challenge in the agribusiness sector. We have a goal of expanding the presence of women in leadership positions, and more recently, we have improved awareness of bullying and sexual harassment.Environment
Commitment
1. Does the company have a formal policy on the following environmental topics?
Optional commentThe use of electrical energy is not very intensive in branches and business units. Our focus is on improving our impact on the use of fossil fuels in the domestic fleet.1.1. For each environmental policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?
Optional commentAll actions related to climate change and forests underwent external consultation with important stakeholders, such as NGOs, agribusiness associations, and local public authorities. On the subject of fossil fuels and energy, consultations with commercial partners, such as suppliers and consultancies were conducted.4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?
4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?
4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?
5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?
Climate Action
6. What were the company’s gross global greenhouse gas emissions for the reporting period?
Scope 2 Emissions
Scope 3 Emissions
7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?
Optional commentThe investment is made in the development of products with a lower environmental impact, such as biological pesticides.8. Has the organization acted to support climate change adaptation and resilience?
Energy / Resource Use
9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.
Optional commentData referes to the national eletric matrix (Brazil) considering 2021 scenario, including all major sources - hydropower, biomass, solar, eolic.Technology
10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?
Sector-specific Questions
11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.
Optional commentLavoro belongs to the Agribusiness sector, distributing do farmers and local retailers agricultural inputs such as seeds, fertilizers, pesticides and biological products.Sector-specific: Water
12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.
Water withdrawal (volume of water in megaliters):
Water consumption (volume of water in megaliters):
13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.
Sector-specific: Forest, biodiversity, and land use
14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).
15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?
16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?
Sector-specific: Air pollution
17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.
Sector-specific: Waste
18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.
Optional commentwaste generated in stores and office operations. Recyclable material is generated in storage, such as secondary packaging.19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.
Optional commentAll hazardous chemical waste is stored, collected, and disposed of properly by a specialized company. the most common final destination is incineration.20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.
Overall Environment
21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.
Principles 7 and 8 - In 2021, we have implemented: Sustainability policy; Environmental indicators system First GRI report GHG emissions inventory Socio-environmental risk assessment in customer chain to detect company risks on forced labor, deforestation, and land use. Principle 9: Our agrobiological business unit undertook a market expansion to bring cleaner crop treatment technology to a larger number of traditional grain farmers. The business expansion in 12 months was 38%.Anti-corruption
Commitment
1. Does the company have an anti-corruption compliance programme?
2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?
Prevention
3. Who receives training on anti-corruption and integrity?
3.1. How often is such training provided?
4. Does the company monitor its anti-corruption compliance programme?
Response and Reporting
5. Please report the company's total number and nature of incidents of corruption during the reporting year.
6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?
7. Does your company engage in Collective Action against corruption?
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.
As 2022 is a year of majority elections in Brazil, an awareness campaign on different forms of corruption is planned, in addition to annual training.