Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental
• Governance

Environmental Achievements

• Reduced CO2 emissions at La Providencia refinery by switching boiler fuel from natural gas to bagasse.
• Reduced ethyl acetate use by 94% at Converflex plant in Villa del Totoral by switching from solvent to water-based cleaning.

Social Achievements

• Implemented the PeopleSoft Enterprise Human Capital Management 9.0 software.
• Launched the Arcor University for employee training and development.
• Implemented the Community Relationships Program.
• Launched the ‘SGI Recognition’ program to recognize employee achievements.

Governance Achievements

• Implemented a Conflict of Interest Procedure.
• Adhered to the United Nations Global Compact.

Climate Goals & Targets

Environmental Challenges

• Argentine agricultural crisis in the first semester of 2008.
• Significant increase in raw materials and labor costs.
• Worst global financial and economic crisis in decades.
• Labor conflicts resulting in $22 million in losses.

Mitigation Strategies

• Investing in employee development.
• Applying strict occupational and environmental safety criteria.
• Promoting social joint responsibility in the value chain.
• Working for children's rights in partnership with Arcor Foundation and Arcor Institute.
• Implementing a financial policy aimed at increasing cash flows and maintaining liquidity.

Supply Chain Management

Responsible Procurement

• CSR Training and Monitoring Program for Suppliers
• Letter of Adhesion to Fundamental Principles for Responsible Management
• Responsible Inclusive Purchasing Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Certifications: ISO 14001 (27 plants), OHSAS 18001 (15 plants)

Awards & Recognition

• 1st place in ‘Total Prestige’ ranking (Prensa Económica Magazine)
• 1st place in ‘The 100 most admired companies of Argentina’ (Clarín Newspaper)
• 1st place in ‘100 companies with best image’ (Apertura Magazine)
• 1st place in companies ranking (1st International Conference on Public Relations in Argentina)
• 1st place in ‘Cordoba’s TOP companies’ (Punto a Punto Magazine)
• 2nd place in ‘The TOP 30 brands’ (Apertura Magazine)
• ‘Processor of the Year’ (Industria Alimenticia Magazine)
• ‘Main Latin American company of the sector’ (Candy Industry Magazine)
• ‘Argentine Export Award 2008’ (Prensa Económica Magazine)
• Platinum Konex Award for Luis Pagani

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental Care
• Respect for and Protection of Human and Labor Rights
• Active Life and Healthy Nutrition

Environmental Achievements

• 70% reduction in kg of waste sent for burial per ton produced since 2014
• 42.8% of fuel and 25.7% of electric power used comes from renewable sources
• Zero waste goal achieved by three plants in Brazil
• 93% of boxes used at consumer goods plants are manufactured using paper from certified sources
• 100% of the paper used as raw material at the Cartocor plant, PEFC or FSC certificate

Social Achievements

• Launched "Puente" (Bridge) project to develop value proposals for low-income consumers
• Launched "Aprendiendo a disfrutar" (Learning to Enjoy) program focused on creating healthy nutrition habits and promoting an active life, reaching more than 12,000 children
• Adhered to the Women's Empowerment Principles, reinforcing its commitment to gender equality
• More than $12,000,000,000 allocated to the economic and social inclusion of suppliers with fewer opportunities to access the market
• Work inclusion of more than 272 persons with disabilities

Governance Achievements

• Migrated to the new GRI Standards (Global Reporting Initiative)
• Established 820 initiatives implemented in 13 sustainability operation plans
• More than 3,000 employees subject to sustainability goals

Climate Goals & Targets

Environmental Challenges

• Meeting the growing demand of healthy, high-quality, affordable food, produced in a responsible, sustainable manner
• The ethical challenge of making food available to all inhabitants of the Earth
• The environmental challenge of providing affordable and sustainably produced food

Mitigation Strategies

• Deploying responsible supply chain management practices
• Implementing the Food and Healthy Lifestyle Strategy
• Developing innovative practices to create shared value
• Implementing the REconocer program to manage business quality and sustainability risk

Supply Chain Management

Responsible Procurement

• Sustainable Agriculture Program
• Sustainability and Business Quality Index for Suppliers
• Sustainable Paper Supply Policy
• REconocer Program
• Letter of Adherence to the Guiding Principles for Responsible Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core option), ISO 26000 Standard on Social Responsibility

Certifications: ISO 14001, OHSAS 18001, ISO 9001, BRC, IFS, FSSC 22000, Global GAP, GMP, FSC, PEFC, UTZ, RSPO

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 10
• SDG 12
• SDG 13

Arcor's initiatives contribute to these goals through various programs and actions related to health, economic growth, reduced inequalities, responsible consumption and production, and climate action.

Sustainable Products & Innovation

• Gluten-free products
• Products with reduced sodium, sugar, and saturated fats
• Products with added nutritional benefits (vitamins, minerals, fiber)
• Sustainable packaging

Awards & Recognition

• MERCO Ranking (Business Monitor of Corporate Reputation)
• Sustainable Management Awards
• APSAL Awards
• CCIFA Awards
• Image Ranking, Apertura Magazine
• Business Prestige Ranking, Prensa Económica
• Paul Harris Award for Enterprise Excellence
• Corporate Citizenship Award
• Sustainable Leadership Award
• Eikon Awards
• Infonegocios Award

Environmental Metrics

ESG Focus Areas

• Producing Sustainable Food
• Promoting People Prosperity
• Preserving the Planet Sustainability

Environmental Achievements

• Reduced specific water consumption by 16.57% compared to 2021
• Reduced greenhouse gas emissions by 12,187 tons of CO2eq compared to 2021; 4.78% reduction compared to 2017.
• Achieved zero waste sent to landfill in three Argentinian plants (Zucamor Quilmes, Zucamor Cartón Ranelagh, Bagley Córdoba) in 2022.
• Used 100% paper and cardboard from sustainable origin.

Social Achievements

• Launched the new Healthy Eating & Habits Strategy: Food for a Better Life, resulting in 32.3% of turnover from products with outstanding nutritional benefits.
• Workplace Well-being Survey for 19,799 people with 78% response rate and 82% average commitment level.
• Celebrated 30 years of Arcor Foundation, impacting 6.7 million children and 1.5 million people.
• Launched the "We are Arcor" Ambassadors Program on LinkedIn.

Governance Achievements

• Publicly presented its 2030 Sustainability Strategy and the new "A Better Life" Sustainability Policy.
• Incorporated sustainability goals into the Performance Management System, impacting 3,037 employees and 967 management-level employees.
• Maintained various certifications (ISO 9001, ISO 14001, ISO 45001) across operational bases.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied)
• Climate change impacts (implied)
• Water scarcity in certain regions.

Mitigation Strategies

• Developed alternative sourcing strategies (implied)
• Implemented water conservation measures (reducing specific water consumption)
• Developed Climate Change Strategy with emission reduction targets.
• Agro+30 Program to promote regenerative agriculture.

Supply Chain Management

Supplier Audits: REconocer Program evaluated 1,191 suppliers (53.8% of purchase volume) since 2017; 69 new suppliers evaluated in 2022.

Responsible Procurement

• Letter of Adherence to Fundamental Principles for Responsible Management
• REconocer Program
• Responsible Inclusive Purchasing Program (CIR)

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Opportunities

• Renewable energy
• Regenerative agriculture

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 9001, ISO 14001, ISO 45001, BRC, HACCP, BPM, FSSC 22000, IFS, Global GAP, Bonsucro, Rainforest Alliance, RSPO, FSC, PEFC

Third-party Assurance: Monasterio & Asociados S.R.L - Crowe

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 16
• SDG 17

The report details how various initiatives contribute to the achievement of these goals.

Sustainable Products & Innovation

• Topline Turbo sugar-free gum
• BC Mayonnaise (reduced lipid content)
• Criollitas with high oleic sunflower oil and no added salt
• Simple Satiety Plus dietary supplements
• Mini Chubi cookies (portion-controlled)

Awards & Recognition

• 100 Companies with Best Corporate Image (Apertura magazine)
• Top Brands (Apertura magazine)
• Dircoms Awards
• Eikon Awards
• Business Prestige Award (Prensa Económica magazine)
• Top 100 Confectionery Companies in the World (Candy Industry magazine)
• Exports Awards (Prensa Económica magazine)
• Fortuna Awards (Fortuna magazine)
• The 500 most influential companies in Latin America (Bloomberg)
• Argentina BritCham Prize to Sustainable Leadership
• Ciudadanía Empresaria Award