According to the goals defined for 2030, AgroGalaxy assumed a New Commitment regarding short-term goals and actions (2022). In order to integrate ESG in the strategy and dynamics of its operations, the Company assumed the commitment with global challenges, such as the increase of diversity, including lead position and, in addition to the incentive of bio solutions, the Company intends to exclude from the portfolio the products banished by OMS, although the respective sale is authorized in Brazil. Therefore, AgroGalaxy intends to positively stimulate the Brazilian agribusiness, with voluntary actions related to ESG.
Key commitments for 2030 and goals for 2022
a. Offer innovative solutions, including technical support to farmers to adopt more sustainable protocols, with gains of productivity, profitability and climate resilience for rural properties.
b. Cooperate for preservation of biodiversity, supporting the fight against deforestation, including actions to recover the damaged areas with farmers, inclusive by means of education, financing and payment models involving environmental services, in partnerships with other organizations.
c. Create an inclusive organizational culture, which develops and appreciates talents, based on Diversity, Integrity, Innovation and Sustainability, by improving AgroGalaxy’s capacity for human development in field and life quality for rural communities.
The beginning of 2022 was marked by significant improvements in two main issues related to the key commitments assumed and published in the 2021 Annual Report in April 26, 2021.
Credit Policy with ESG criteria | Goal 5
On January 28, 2022, the Agrogalaxy’s Board of Directors approved the update of the Company’s Credit Policy, including two innovations. The first is the application of the guidelines to all business units, and the second is the inclusion of the Social and Environmental Risk Analysis more focused on the ESG criteria in the customers’ real estate financed by the Company.
After publication, the Credit & Receipt and Commercial teams were trained through virtual and on-site meetings with the ESG and Legal teams. In addition, the new analysis procedures included the adoption of the Safe tool, developed by Agrotools, to speed up and automate the analyses of the AgroGalaxy’s areas, in accordance with the monitoring goal of 100% of the customers’ assets in 2022. By the end of March, Safe has already included 5,136 properties, including 3,2 MM hectares in area and 3,228 customers (13%) in assets. In total, 15 environmental and social items evaluate the rural properties according to the prohibited or restricted criteria defined by the Company. The structure of the Credit & Receipt area was adjusted to new professionals to ensure the compliance with new demands generated by the updated policy. As from March, the teams began to report, on a weekly basis, the analysis of the areas, including the identification of issues to be analyzed in detail to improve security.
“We understand that the improved analysis of the social and environmental criteria in credit concession is a learning process for the entire agricultural chain, which will bring benefits to the market in the medium and long terms. AgroGalaxy undertakes the best efforts to implement the best practices, supported by these new identification and tracking tools to meet our customers’ demands, aiming at a responsible production and safe product, generating value to your property”, declared José Ricardo Romanini, Credit and Receipt Executive Officer.
Launching of AgroGalaxy Institute | Goal 3
On February 10, 2022, the AgroGalaxy Institute was officially launched. The Institute was developed by the Chairman of the Company’s Board of Directors, Sebastian Popik, and the AgroGalaxy’s CEO, Welles Pascoal. The event was transmitted by youtube and was attended by the Institute’s Directors. One of the highlights of the new entity is the governance model, supported by recognized names in Sustainable Agribusiness sector, all independent and working as volunteers, namely:
- Tarcila Ursini – Chief Purpose Office in EB Capital, member of the Board of Directors of Agrogalaxy, Korin, JSL and Baumgart Group.
- Marcello Brito – CEO of CBKK, member of the Board of Directors of organizations, such as Coalizão Brasil, Clima, Florestas and Agricultura, Conservação Internacional, Instituto Arapyau and Black Jaguar
- Aline Locks – CEO of Produzindo Certo and Executive Officer of Aliança da Terra
- Marcelo Morandi – Researcher and General Chief of Embrapa Meio Ambiente
- Isabela Pascoal Becker – Sustainability Executive Officer of Daterra Café and Executive Officer of Fundação Educar
“The project is a significant step towards compliance with social and environmental commitments assumed by AgroGalaxy. The launching of the Institute consolidates the goal that guides the Company since the beginning. The idea is allocate a portion of our profits to generate a positive impact in environment, agricultural production and rural producer’s life. In other words, we would like to be the bridge between rural environment and sustainable solutions”, declared Sheilla Albuquerque, CEO of AgroGalaxy Institute and Agrogalaxy’s Vice-President (VP) of Business Department.
In March, the First Launch of the AgroGalaxy Institute was launched with supporting solutions to the Brazilian farmer in the Transition to the Regenerative Agriculture. Upon completion of the subscription period, 92 projects were received to be selected for a Pitch Day with those responsible for decisions at the beginning of June. Amongst the 10 previous selected projects, three solutions will be supported by the Institute to the implemented in the field.