Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental Management
• Community Development
• Employee Well-being
• Responsible Supply Chain

Environmental Achievements

• First company in Brazil to commercialize carbon credits (CBios) under the RenovaBio program.
• Calculated the carbon footprint of dairy plants using World Bank methodology.
• Validated carbon credits from the biodigester certification process.
• Audited rice fields by the Sustainable Agriculture Initiative (SAI).
• Maintained BRC food safety certification for peanut plant with the highest rating.
• Installed natural gas in Planta Morteros, reducing CO2 equivalent emissions by 36% per m3 of milk processed.
• Planted 55,000 hectares of cover crops.
• Generated 8,845 MWh of renewable energy with the biodigester and solar park.

Social Achievements

• Donated over 80,000 liters of ethanol in Brazil and over 400 tons of food in Argentina to support communities during the COVID-19 pandemic.
• Participated in the Seamos Uno solidarity initiative.
• Launched Leche con Cacao and Yogurt products.
• Increased milk processing by 63% compared to 2019.
• Increased rice production by 13% and grain production by 10% compared to 2019.
• 30% of the milking team in our dairies is now composed of women.
• Supported 13 CONIN centers to contribute to children's nutrition.
• Donated 307,989 kg of food.
• Invested $18,731,305 in private social investment.

Governance Achievements

• 100% of directors and employees received anti-corruption training.
• 100% of employees signed the Certificate of Compliance with the Code of Ethics and Business Conduct.
• Implemented a process to identify key stakeholders, classifying them as internal, direct, and those with an interest in or affected by Adecoagro's activities.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and supply chains.
• Uncertainty in the global context.
• Low rainfall affecting water resources.

Mitigation Strategies

• Flexible work arrangements and safety protocols implemented to ensure business continuity.
• Investment in technology and digital tools.
• Focus on employee health and safety.
• Increased efforts in private social investment.
• Collaboration with stakeholders to address challenges.
• Adaptation of environmental and occupational health and safety monitoring to COVID-19 protocols.
• Implementation of a polyvalence system to cover absences due to COVID-19.

Supply Chain Management

Supplier Audits: SMETA audits in industrial plants

Responsible Procurement

• Policies and procedures establishing requirements for contractors and suppliers.
• Audits with the Quality and Food Safety area for new logistics operators and mass consumption warehouses.

Climate-Related Risks & Opportunities

Physical Risks

• Low rainfall

Opportunities

• Development of energy-efficient products
• Renewable energy generation

Reporting Standards

Frameworks Used: GRI, SASB, UN SDGs

Certifications: BRC, FSSC 22000

Third-party Assurance: Independent public accountants (limited assurance)

UN Sustainable Development Goals

• 2
• 3
• 6
• 7
• 8
• 9
• 12
• 13
• 15
• 16

Contribution to 55 targets across the 17 SDGs; detailed contributions described throughout the report.

Sustainable Products & Innovation

• Leche con Cacao and Yogurt; snacks

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Biodiversity
• Occupational Health and Safety
• Diversity and Inclusion
• Human and Labor Rights
• Community Development
• Transparency and Business Ethics
• Good Governance
• Product Quality and Safety
• Sustainable and Regenerative Agriculture
• Supply Chain Management
• Animal Welfare

Environmental Achievements

• 781,130 tons of CO2e sequestered
• 550,000 carbon credits sold in Brazil
• 960,000+ MWh of bioelectricity generated from by-products
• 87% of the energy consumed is self-generated and renewable
• Implementation of efficient and sustainable irrigation technologies in rice operations, saving up to 30% of water consumption
• In Brazil, 48% of chemical fertilizers replaced with organic ones produced in-house
• 99.9% of waste generated in Brazil and 62.0% in Argentina and Uruguay recycled or recovered

Social Achievements

• Accident Frequency Rate of 8.06 in 2022 (YoY improvement in 3 out of 4 businesses)
• USD 793,966 invested in community actions benefiting 74 communities and 180 organizations
• Partnership with Apae Brazil to expand employment of people with disabilities
• Publication of Diversity and Inclusion Policy and Workplace Violence Protocol
• 2 new rice mills certified with FSSC 22.000
• Peanut plant repeated highest BRCGS qualification (AA)

Governance Achievements

• All directors aware of Anti-Corruption Policies
• 12th consecutive year with no material or significant deficiencies reported to SEC under Sarbanes-Oxley Act
• Incorporation of 2 ESG variables (carbon footprint reduction and women’s participation) into compensation policy

Climate Goals & Targets

Environmental Challenges

• Challenging year due to weather conditions, regulatory changes, and increased costs
• Second consecutive La Niña year with dry weather and low rainfall affecting crops
• Lack of rainfall affecting water availability for irrigation
• Fluctuations in raw material prices and production costs

Mitigation Strategies

• Geographic and crop diversification, genetic selection, and technology use to maximize yields
• Implementation of efficient irrigation technologies (Zero Level, Controlled Slope, Hose Irrigation)
• Use of by-products (vinasse, filter cake) to replace chemical fertilizers
• Export of anhydrous ethanol to capture premium prices
• Expansion of rice processing and storage capacity to mitigate climate risk and access new markets

Supply Chain Management

Supplier Audits: 26% of third-party dairy free stalls audited

Responsible Procurement

• Term of Commitment for suppliers on social and environmental issues
• Contractors’ Standard for crops business

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (droughts, floods, frost)
• Water scarcity

Transition Risks

• Changes in government policies
• Fluctuations in raw material prices

Opportunities

• Carbon credit generation
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (including GRI 13 for Agriculture), SASB Standards, Integrated Reporting Framework

Certifications: ISO 14001:2015 (biodigester), BRCGS (peanut plant), FSSC 22000 (rice mills), RTRS, SAI, CRS (soybeans), Renovabio (Brazil)

Third-party Assurance: SMS - San Martín Suarez y Asociados

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Detailed in the report's 'Contribution to the United Nations 2030 Agenda' section

Sustainable Products & Innovation

• Bioelectricity
• Biogas/Biomethane
• Biofertilizers
• Veggie snacks

Awards & Recognition

• Great Place to Work (Brazil)
• Empresa Amiga da Mulher (Brazil)

Environmental Metrics

ESG Focus Areas

• Climate & Energy Transition
• Regenerative Agriculture
• Water Resources Management
• Biodiversity
• Diversity and Inclusion
• Occupational Health and Safety
• Community Development
• Governance
• Supply Chain Responsibility
• Food Safety

Environmental Achievements

• Reduced carbon intensity by 15% (vs 2022)
• Sequestered 223,222 tons of CO2e
• Sold 2 million carbon credits in Brazil (accumulated total)
• 74,000 hectares of cover crops to enhance regenerative agriculture
• Replaced 48% of chemical fertilizers with organic ones
• 88% of energy consumed is self-generated and renewable
• 100% of light vehicles powered by biomethane in Ivinhema
• 30% water savings in rice fields with precision levelling technology
• Recycled or recovered 48% of waste generated

Social Achievements

• USD 529,401 invested in community actions benefiting 66 communities and 138 organizations
• Four strategic pillars to strengthen the role of women in the company
• Partnership with Apae Brazil to expand employment of people with disabilities
• 90% of industrial food production processes have GFSI-recognized certifications
• 7.6 Accident Frequency Rate in 2023 (-11% vs 2022)

Governance Achievements

• All directors trained in anti-corruption policies
• 13th consecutive year with no material or significant deficiencies reported to SEC
• Financial statements and SOX compliance audited by an independent auditor
• 10% of executive cash bonuses linked to ESG variables (carbon intensity and gender diversity)

Climate Goals & Targets

Environmental Challenges

• Severe drought impacting operations in Argentina and Uruguay, resulting in a 30% year-over-year reduction in crop and rice production
• Fluctuations in raw material prices
• Climate-related events impacting food and renewable energy production
• Fluctuations in production costs

Mitigation Strategies

• Focus on efficiency and low-cost production
• Geographic and product diversification
• Investments in production and commercial capabilities
• Advanced technologies to improve water use efficiency (up to 30% savings)
• Use of biofertilizers to replace chemical fertilizers
• Hedging strategies to mitigate foreign currency fluctuations
• Continuous improvement initiatives to reduce energy and carbon intensity

Supply Chain Management

Supplier Audits: 80% of third-party dairy farms audited

Responsible Procurement

• Code of conduct for suppliers
• Supplier sustainability requirements
• Monitoring of tax payments
• Contractors’ Standard for agricultural services

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods
• Frost

Transition Risks

• Fluctuations in market prices
• Changes in government policies

Opportunities

• Carbon credit sales
• Soil carbon sequestration

Reporting Standards

Frameworks Used: GRI Standards (2021 version), SASB Standards, International Reporting Framework

Certifications: ISO 14001, Bonsucro, RenovaBio, FSSC 22000, RTRS, SAI, BRCGS

Third-party Assurance: SMS - San Martín Suarez y Asociados

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16, 17

The report details how various initiatives contribute to each of the 17 UN SDGs.

Sustainable Products & Innovation

• Biomethane
• Bioelectricity
• Biofertilizers
• Recyclable packaging

Awards & Recognition

• Best Performance in the Agribusiness Sector (Gerencia Ambiental)
• Ivan Chaves Award
• Fermentec Award
• Benri Award
• BYMA Award
• Latin American Corporate Responsibility Award
• Great Place to Work