Engagement

GRI 3.5

GRI 4.16

GRI 4.17

In 2011, seeking increased effectiveness and transparency in its production processes and communications with its various stakeholders, the company identified 11 relevant topics for sustainable activities, and operation, which served as the basis for its Materiality Matrix: Environmental conservation; health and safety along throughout the production chain; job creation and income generation; training and development; business performance; transparency and accountability; electricity generation from biomass; burn-off practices; local development; hiring and qualification of local workforce; labor conditions and respect for human rights.

This matrix is being used in preparing this document, since no significant changes occurred in the operations of Odebrecht Agroindustrial. In the period, 153 on-line questionnaires were distributed to 91 by members of the administrative area, 38 members of the agricultural area and 24 members in the industrial area; in addition to 196 printed forms in four clusters: 60 in São Paulo, 52 in Araguaia, 63 in Goiás and 21 in Mato Grosso do Sul. This process also comprised interviews with leaders and with the Business Leader, as well as questionnaires answered by external stakeholders: approximately one third of the clients and one fifth of the suppliers.

To define the matrix, the company took into account relevant aspects of its internal policies, such as the Health, Safety and Environment (HSE) guidelines and its Code of Ethical Conduct, in addition to a series of factors relating to the sugar and electricity industry, and other aspects linked to local governments and communities, which were identified through panels held in five, out of the nine municipalities where Odebrecht Agroindustrial maintains the Social Energy Program for Local Sustainability.

The questions were classified and organized in quadrant charts, according to their scores, and taking into account the two axes of the matrix (the perspective of external and internal stakeholders). Eleven topics of greater relevance were identified, as shown in the matrix below.

MATERIALITY MATRIX

Material topics and concerns from the point of view of stakeholders

{

}

The company has been working on the 11 topics indicated in the matrix, maintaining a series of actions focused on improvements.

Most relevant topics

Topic

Actions

Environmental conservation The company has been handling environmental conservation issues considering two aspects: prevention and monitoring controls and programs intended to assess the impact from its activities (see chapter “Social Performance”) and the focus on environmental conservation in the communities in which it operates (see “Social Energy Program for Local Sustainability”.
Heath and safety The company maintains strict health, safety and environmental (HSE) guidelines intended to ensure a safe and accident-free work environment to all its members and partners. Additionally, it maintains committees and internal commissions for accident prevention (CIPAs) in its Units to handle this issue, besides developing a dialog and specific acculturation actions involving Leaders and their teams. As result of these initiatives, there was a considerable reduction in accident and injury rates in recent crops. (For more information, see the chapter “Social Development”)
Nob creation and income generation, and hiring and qualification of local workforce In the scope of the Social Energy Program, various training and qualification actions are developed with focus on the communities with which the Company relates. The goal is to increase the offer of jobs by qualifying these populations, contributing for local development and income generation. Since the beginning of this Program, more than 2 thousand persons have been trained locally, of which 65% were hired by the Company. During the period, approximately 2.5 thousand local members were benefited with job promotions (see chapter “Social Development”).
Training and development In the period, the Company invested R$6 million in training and qualification programs. On-the-job training and qualification for work are one of the key drivers of people management.
Transparency and accountability The Company maintains various internal and external channels that are available to its stakeholders and include: its website (www.odebrechtagroindustrial.com), intranet, the “Minha Energia Odebrecht Agroindustrial” radio station, and the “Agro em Ação” magazine. Always with a view to ensuring transparency in the rendering of accounts, its Annual Reports are prepared based on the Global Reporting Initiative (GRI) guidelines at application level A.
Burn-off practices Burn-off practices ceased to be used due to fully mechanized harvesting in all Units. However, the company maintains specific programs intended to control risks of fire, as a result of factors such as the drought season. Additionally, fire brigades are in place at all clusters. These groups are specifically trained for quick and prompt operation in risky or hazardous situations (for fire control, see chapter “Environmental Performance”).
Business performance In line with its primary focus on business management, Odebrecht Agroindustrial is the company that invested most in the sector in the past years (see details in the chapter “Economic and Financial Performance).
Local development The company’s social responsibility focus is on the sustainable development of the regions where it operates, through the Social Energy Program for Local Sustainability

The Sustainability Report for the 2011-2012 Crop was analyzed by students of the Master Program of Entrepreneurship and Innovation, in the subject “Sustainability”, held by BI International in São Paulo. The participants, who are executives in companies from various economic sectors, analyzed the quality of the information disclosed, as well as its adhesion to the materiality matrix, and proposed improvements that were considered in the preparation of this document.