“There is a major change occurring in the field and this change necessarily involves regenerative, low-carbon and inclusive agriculture, with traceability of the chains, while promoting greater efficiency, productivity and opportunities.
Having a sustainability committee of the Board of Directors composed of four directors, two of whom are independent, advising the Board of Directors, dedicated to socio-environmental issues related to the business and to the customer, while at the same time promoting a connection with the culture, such as the insertion of the issue in variable remuneration, in the promotion of diversity and inclusion, in the management of the supply chain, in transparency with investors, helps to focus and advance at the necessary speed for a company that wants to lead this transition agenda in agribusiness in the country.”
2030 ESG Positioning
We work to be the best partner for Brazilian farmers in implementing sustainable production models that maximize productivity and profitability, aligned to environmental preservation and socioeconomic development. With this in mind, AgroGalaxy’s Sustainability Committee recommended to the Board of Directors a revision of the ESG Goals for 2023, maintaining the Positioning and Key Commitments for 2030.
In this sense, priority initiatives were listed to contribute to AgroGalaxy’s strategy, in order to:
Commitment 1* Sustainable offer
To offer innovative solutions, with the best technical support for farmers to implement more sustainable protocols, with gains in productivity, profitability and climate resilience for their rural property.
Commitment 2 Biodiversity Preservation
To join forces for the preservation of biodiversity, supporting the fight against deforestation, with measures aiming at the redress of degraded areas with farmers, including by means of education, financing and models for payment for environmental services, in partnerships with other companies.
Commitment 3 ESG in the Enterprise Culture
To create an inclusive organizational culture that develops and cherishes talent, based on the pillars of Diversity, Integrity, Innovation and Sustainability, expanding the reach of AgroGalaxy for human development in the countryside and life quality for rural communities.
Goal 1: increase revenue with bioinputs (R$ 320 million), a 40% growth vs. 2022.
Goal 2: reduce the trade of products authorized in Brazil but considered by the WHO as highly hazardous products by 25% (expectation to stop trading those products by 2025).
*The variable compensation of all the employees will be impacted if we achieve the goals 1 and 2 comprising the Commitment 1.
Goal 3: improve the geomonitoring of clients’ properties, focused on priority biomes:
2023 – Brazil’s Legal Amazon (85%);
Cerrado Region (50%).
2024 – Brazil’s Legal Amazon (100%);
Cerrado Region (80%).
2025 – All biomes (100%).
Goal 4: release and implement the Carbon Program for the clients
Goal 5: train 80% of the employees in ESG content.
Goal 6: have 17% of the women working in a leadership position.
In April 2021, the Socio-Environmental Responsibility Policy was released, instructing all employees to act in line with the support of sustainable agriculture and contribution to the Sustainable Development Goals of the UN 2030 agenda. In November of that same year, Agrogalaxy became a signatory to the United Nations Global Compact.
At the end of the year, the Materiality review was concluded to comprise within the needs of the business itself, the expectations of the interested parties. These matters entailed key commitments, defining corporate goals in 2022, with strategic initiatives and indicators for the monitoring of results.
For a more detailed monitoring of established commitments and supervising of achievement of said goals, we have our Sustainability Committee, comprised by the following sitting members:
– Tarcila Reis Corrêa Ursini
– Larissa Yastrebov Pomerantzeff
– Welles Clóvis Pascoal
– Sheilla Maria Pereira Alburqueque
– Marcelo Vanderlei Stein Zanchi
Social and Environmental Impact
In October, it was approved the establishment of the AgroGalaxy Institute, which was officially launched in February 2022, with the purpose of “fostering knowledge, training and innovation applied to sustainable development in the countryside”. With this branch in the third sector, we will act in a structured manner to enable solutions in more sustainable production models, balancing environmental and social needs and connecting rural producers with innovation ecosystems.
In May 22, the Company is pleased to announce the awarding of the bronze seal of EcoVadis, an institution internationally recognized for evaluating companies’ sustainability management.
Promotion of the 1st AgroGalaxy Institute
In October 2022, AgroGalaxy celebrated the conquest of the Gold Seal of the Brazilian GHG Protocol Program, an unprecedented achievement among agricultural input retail companies.
Promotion of the 2nd AgroGalaxy Institute
Reached score B of the Carbon Disclousure Project ranking
In January 2023, AgroGalaxy issued Certificates of Agribusiness Receivables ("CRAs") for green finance. This is a pioneering issuance in the agricultural inputs retail sector, with the purpose of supporting rural roducers while transitioning to sustainable, low-carbon and regenerative agriculture. The first phase of the program begins with the issuance of up to BRL 25 million in CRAs qualified as “transitional” by Nint’s Second Opinion, directing funds to up to 25 rural producers working with grain crops such as soy, wheat, corn, and coffee. The project should cover around 10,000 hectares in areas located in the Amazon, Cerrado and Atlantic Forest biomes.
AgroGalaxy has also celebrated the market’s acknowledgement of its outstanding performance aiming at the constant support to a more sustainable, equitable and ethical future.
Women on Board (WOB):
In line with its commitment to diversity, AgroGalaxy became in 2021 the first Brazilian agribusiness company to be certified with the Women on Board (WOB) seal, for having three women as members of its Board of Directors.
EcoVadis Bronze Seal
The purpose of the EcoVadis’ methodology is to evaluate the quality of the Business Social Responsibility management system – through its policies, implementation measures and results. The 21 sustainability criteria of such methodology are based on international standards, such as the Global Commitment Principles, the agreements of the International Work Organization (OIT), the Global Report Initiative (GRI), the ISO 26000 standard, and the CERES principles. To determine the classification, EcoVadis evaluated the practices adopted in four big pillars: human rights and labor practices, ethics, environment and sustainable purchases.
AgroGalaxy achieves the Gold Seal of the Brazilian GHG Protocol Program
AgroGalaxy celebrated in October the conquest of the Gold Seal of the Brazilian GHG Protocol Program, an unprecedented achievement among the retail companies of agricultural inputs. The GHG Protocol is an internationally recognized program for the development of calculation methodology for greenhouse gas (GHG) emissions estimates, and the gold category is the maximum recognition granted to organizations that present the complete balance of their emissions, verified by 3rd party audits.
After responding to CDP’s Climate Change questionnaire for the first time, the Company achieved a B score in the ranking of the international organization that analyzes and recognizes the efforts of companies to manage the environmental impacts of their activities. AgroGalaxy obtained the third highest score, two grades above the average of responding companies from the sector in South America and globally.
For the third consecutive year, AgroGalaxy publishes an Annual Report, in this cycle in accordance with the most current version of the GRI Standards, published in 2021 and mandatory for documents issued from 2023, in addition to meeting part of the GRI 13 Sector Standards: Agriculture, Aquaculture and Fish Farming, mapped throughout the text. The content covers the period from January 1st to December 31, 2022, with information on the socio-environmental, operational and financial performance of the Company, following the materiality process, carried out in 2021, with consultation with the main stakeholders.
It also brings the advances made in the strategy, anchored in ESG practices and in the Sustainable Development Goals (SDGs) of the United Nations (UN) listed as priorities for AgroGalaxy’s business and stakeholders (the goals and their results are listed interactively throughout the document). Thus, this Report is also an instrument for communicating the Global Compact’s progress, to which the Company is a signatory.