Transcript Definition of “Sustainability” is expanding beyond

Key Trends, Challenges & Opportunities
ASA Symposium
Presentation by:
Joe Goehring
Stowe, Vermont
VP Industrial Sales
August 5, 2014
Domino Foods, Inc.
Key Operations
Farming
Harvesting
• 390,000 acres
• 12,500,000 tonnes cane
Milling
• 6 sugar mills in 4 countries
Refining
• 11 refineries in 7 countries
Sales
Know-how
Power
Alcohol
Note: ASR Group and affiliates.
• 10 leading brands
• 150+ years of experience
• 2 biomass cogeneration plants
• 1 alcohol plant
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Sugar from field to table
We have more than 150 years of experience taking sugar cane from the field to the table. Our
expertise with the cane sugar process is without equal in the industry.
Vertically-Integrated From the Farm to the Table
Sugarcane Farming & Milling
 One of largest sugarcane farming
groups globally
 6 sugar mills
 15 MMT sugarcane crushing
Sugar Refining
 #1 global sugar refiner
 11 refineries
 6 MMT sugar refining capacity
Packaging & Distribution
 Leading marketer and distributor of
packaged sweeteners globally
 Manage 50+ facilities throughout
the Americas and Europe
capacity
 690,000 MWhr p.a. from biomass
Note: ASR Group and affiliates.
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Our farming & milling asset base
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One of the top global sugarcane agricultural players
390,000 acres directly farmed by our Group
Extensive experience working with 3rd party growers
6 mills with cane crushing capacity of 15 MMT
4 biomass plants producing 690,000 MWHr p.a.
South Florida
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Total land(a): 285,000 acres
# sugar mills: 3
Cane crushing capacity: 8.6mmt p.a.
Energy production: 320,000 MWHr
− Largest biomass plant in North America
Mexico
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Total land(a): 39,000 acres
Dominican Republic
# sugar mills: 1
Cane crushing capacity: 1.3mmt p.a.
Energy production: 60,000 MWHr p.a.
Legend
Mill
Biomass cogen plant
Belize
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Total land(a): 74,000 acres
# sugar mills: 1
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Total land(a): 170,000 acres
# sugar mills: 1
Cane crushing capacity: 3.2mmt p.a.
Energy production: 200,000 MWHr p.a.
Cane crushing capacity: 1.2mmt p.a.
Energy production: 110,000 MWHr p.a.
(a) Total land under cane. Includes own land as well as land farmed by third-party sugarcane growers.
Note: ASR Group and affiliates.
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Sustainability Components
Three components:
•
People – How the Company
treats people (Consumers,
Employees, Communities).
•
Planet – Conscious respect for
our planet and its’ resources.
•
Sustainability
SUSTAINABILITY
SWEET SPOT
Profits – Cost conscious,
efficiency driven & profitable for
the long run.
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Audits, Audits & More Audits
• Quality Audits (GFSI, ISO,
AIB, SQF, etc.)
• Kosher Certificates &
Compliance
1. 3rd Party
• Organic Sugar Certification
2. Customer
• Regulatory Audits
• Social Responsibility Audits
1. FDA
1. Bonsucro
2. Regional Air Quality
2. Proterra
3. EPA
4. Coast Guard for MARSAC
compliance
Sustainability – Florida Crystals
FCC Measures and Benchmarks Sustainability Performance
 Soil conservation
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Efficient use of inputs: water, energy, and chemicals
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Carbon footprint
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Responsible management of waste streams
Why?
 Sustainability practices are strongly correlated to cost and efficiency
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Inform and drive internal improvements
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Land and environmental stewardship are important to FCC
How?
 Methodologies, indicators, and benchmarks are based on international standards, widely
accepted industry practices and standards, and regulatory requirements
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A multi-faceted approach
• Water Conservation
• Waste Reduction
• GHG Reduction
• Energy Efficiency
• Corporate Citizenship
• Social Responsibility
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Water Conservation
•
From the sugar cane we grow in our fields to the processes we use in our
refineries and packaging plants, water is an important ingredient in our business.
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Reducing our water usage is significant for a number of reasons. The systems
required to move water through our fields and refineries use energy. Reducing the
water we use, therefore, immediately lowers our energy consumption. Just as
important, reducing our water usage lowers our impact on nearby water resources.
•
We have a robust water-reduction program, and we have been decreasing our
usage across the entire production process. Two types of water are used to make
our products: potable water (7%) and raw water (93%), which comes directly from
local natural resources.
•
In 2013, our total global use of potable water was reduced by 4% across all
facilities
•
In 2013, we reduced our water usage per 100 pounds of finished product by 2%.
•
In 2013, our overall sugar effluent (remaining potable water after sugar making
process is complete) was reduced by 5% against the previous year.
Waste Reduction
•
Across every aspect of our business, reducing waste is a significant part of our
sustainability program.
•
In FY2013, our waste-reduction program yielded in an impressive 9% decrease of
total waste disposed from packaging, general plant, office and food waste streams.
•
Recycling is a key part of our initiative, as it reduces our waste-to-landfill output
and provides a positive reuse of waste. Although recycling rates vary greatly by
facility (from 0% to 99%), in FY2013, the average recycling rate across all of our
facilities was 40%—a 12% improvement from the previous year.
•
We’ve also made enormous strides when it comes to reusing our sugar-refiningprocess byproducts, such as calcium carbonate cake and diatomaceous earth.
These materials are high in nutrients and minerals, making them attractive as
agricultural fertilizers. In FY2013, we diverted 97% of the calcium carbonate cake
and biomass/soil byproducts.
•
Our waste-reduction numbers are forecasted to improve even further in the future.
Our engineers are researching and developing innovations that may enable the
company to further the options for reuse of calcium carbonate cake in a range of
materials, from automotive plastics to recycled cardboard to poultry feed
supplements.
Green House Gas (GHG) Reduction
What are the greenhouse gas emissions we measure?
1. Carbon Dioxide (CO2)
2. Methane (CH4)
3. Nitrous Oxide (N2O)
4. Sulphur Hexafluoride (SF6)
5. Perfluorocarbons (PFCs)
6. Hydrofluorocarbons (HFCs)
Green House Gas (GHG) Reduction
•
The primary causes of Greenhouse Gas (GHG) emissions include the use of fossil
fuels, such as natural gas and oil.
•
As recommended by the World Business Council for Sustainable Development, we
measure GHG emissions using standardized scope measurements.
•
Reducing our energy consumption lowers our GHG emissions and shrinks our
carbon footprint.
•
According to a 2010 study, a typical sugar cane refinery emits approximately 20 28 pounds of CO2e* for each CWT of refined sugar it produced.
•
We are pleased to report that our refineries significantly outperform this industry
baseline. Our average GHG value across all our refineries was 18 pounds of
CO2e/CWT of sugar.
•
GHG emissions for our non-refining operations continue to be relatively small, in
comparison, registering at 8 pounds of CO2e/CWT.
Energy Efficiency
•
From 2007 -2012, the ASR-Group reduced our energy usage by a
weighted average 12%.
•
In FY 2013, we were able to decrease fossil fuel use across our company
by an additional 6%.
• Cogeneration:
•
We have been using cogeneration at many of our facilities for over 80
years.
•
Our co-generation facilities (using biomass) are 70-80% efficient vs.
typical fossil fuel energy plants that are only 33% efficient.
•
In FY 2013, the ASR-Group generated an excess of 61,256 megawatt
hours of electricity—enough to power 2,060 homes for an entire year.
Corporate Citizenship
We strive to meet a standard as an outstanding employer and to
ensure high levels of employee commitment by focusing on these
core values:
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Doing Business with Integrity
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Promoting a Discrimination-Free and Harassment-Free Workplace
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Ensuring Workplace Health and Safety
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Providing Ongoing Training and Leadership
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Investing in Corporate Philanthropy
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Developing and promoting Community programs
How we do it?
Corporate Social Responsibility
STEP 1
Suppliers commit to ASR Ethical
Sourcing Code
STEP 2
Self assessment on each supplier
to prioritize
prioritise further checks
STEP 3
Independent audits against ProTerra Standard
STEP 4
Feedback, remediation and
monitoring work with supplier
5 critical compliance factors
 No child, forced, slave or bonded
labour is used
 A worker health and safety
program must be in place and
active
 Land use is legal and ethical
 Bribery or corruption does not
take place
 A plan to mitigate environmental
impact must be in place and
active
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Fairtrade also a key element
social responsibility & environmental sustainability
Bringing piped water to rural
communities in Fiji
Maintenance of equipment in
Guyana
30% improvement in
productivity in Belize
Fertilizer subsidy in Jamaica
Funding for schools in rural
Fiji
Biological Pest Control in
Belize
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Why we use Pro-Terra
social responsibility & environmental sustainability
 Pro-Terra similar to other standards such as Fairtrade &
Bonsucro
 We have used it since 2007
 We have chosen it because of its:
— excellent coverage of human rights and environmental
issues
— high level of acceptance by suppliers
— relevance to large and small agriculture and cane mills
— verifiability by 3rd party auditors
 Audit of each mill and its suppliers typically 5 days and
costs £10,000
 Desk research sensitises auditor to any issues for specific
focus.
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We Are Always Moving Forward….
 Our Company Mission Has Several Important Fronts
 Providing High Quality & Innovative Products
 Our Ability To Deliver Exceptional Service
 Continually Innovating New Products That Our Customers Want
 Successfully Anticipating & Satisfying Our Customers Product Needs
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