Climate Change EC2

Climate change can have a significant impact on the production of food across the globe. Hence, Bunge treats this subject as a key factor in its Sustainability Platform.

In taking precaution against such impacts, Bunge blocks the limitation on its capacity to produce food and bioenergy and avoids losses resulting from big swings in the prices of agricultural commodities, or resulting from changes affecting producers who trade with the company.  

The production of food and fertilizers with lower Greenhouse Gas emissions represents one of the main challenges facing Bunge. The target for reducing its emissions of greenhouses gases, in Bunge Brasil’s case, is 1%.EC2

Fertilizers saw a drop of 47.3% in their consumption of energy produced directly from fossil fuels, when compared to the direct energy consumed in 2010. This drop was mainly due to a significant fall in production at a specific processing line in the fertilizers business, during 2011, which consequently implied a reduction in Greenhouse Gas emissions as well.



Goals and Results

In 2011, Bunge Brasil maintained its efforts to reduce greenhouse gas emissions, by developing mechanisms to reduce the impact of its activities and by promoting initiatives and processes that could contribute to the improved quality of food production. The goals were as follows:





The Food business should use 100% timber culled from planted forests in the composition of its renewable sources, by the end of 2012, in its energy matrix.

  • Target achievedThis target was brought forward, as this business area achieved its target ahead of schedule, in 2011.


Stop burning in sugargane plantation prior to harvesting.

  • Target in process Bunge anticipated the agro-environmental protocol set by the State of Sao Paulo, that established the end of burning practices by 2014,. The company finished the year with more than 90% of its harvesting process mechanized. The target for the end of 2012 is to have 100% of its arable land which is subject to mechanization, harvested without the use of burning.


To reduce emissions by 1%, based on the assessment from 2010 to 2013, for the Food and Fertilizer businesses.

  • Target in progress – The Food and Fertilizer businesses reduced their emissions by 20% in relation to 2010. This reduction was mainly due to an increase in the use of biomass in the company's energy matrix, to a reduction in the consumption of fossil fuels and to the seasonality of emissions resulting from the consumption of electric energy from the National Interconnected System.


To reduce the consumption of water by 5%, based on the assessment from 2010 to 2013, for the Food and Fertilizer businesses.

  • Target still in progress – No reduction in the consumption of water was registered from 2010 to 2011. Bunge Brasil is working on this to try to identify opportunities for reduction, which continue to be assessed in the company's industrial production processes. 1.2

Emissions 3.9, EN16 e EN17

The total of direct and indirect emissions of Greenhouse Gases (GHG) in 2011 was 20% lower than in the previous year, when considering the Food & Ingredients and the Fertilizer businesses. This reduction was due, primarily, to an increase in the participation of Biomass in the company’s Energy Matrix, to a reduction in the consumption of fossil fuels and to the seasonality of emissions resulting from the consumption of electric energy from the National Interconnected System. In 2011, with the coming on line of Bunge’s newly acquired plants, and through a consolidation of the management practices applied to existing plants, the first survey of emissions was carried out, which also took into account agricultural operations. A comparison in relation to the evolution of all the company’s operations will only be available as from the next report to be published.  

DIRECT EMISSIONS (SCOPE 1) (tCO2eq)




N.B. The scope of Bunge Brasil's GHG Emissions covered the following operations:

  • The Fertilizers Business Unit: all its industrial operations.
  • The Food Business Unit: covers the industrial operations of Crushing & Edible Oils.
  • The Sugar & Bioenergy Unit: took into account the industrial processes and the consumption of fuel at the agricultural operations of all its plants. The emission data of this business unit only began to be collected in 2011.

 

 

INDIRECT EMISSIONS (SCOPE 2) (tCO2eq)

TOTAL EMISSIONS (SCOPE 1 and 2) (tCO2eq)

This survey deals with gases emitted through the generation of vapor by boilers, and gases emitted indirectly, through the consumption of electric energy by plant operations as well as by machinery that is directly related to productive operations. From 2011 onwards, the calculation of Bunge Brasil’s GHG emissions follows the methodology established by the Programa Brasileiro dos Gases de Efeito Estufa (Brazilian GHG Program – for more information, please see www.ghgprotocolbrasil.com.br). According to this methodology, emissions resulting from the consumption of biomass are classified into two categories: biogenic and non-biogenic. Emissions of a biogenic origin relate to CO2 taken out of the atmosphere during the process of photosynthesis and can, therefore, be considered as “carbon neutral”. Emissions of a non-biogenic nature, meanwhile, result from the emission of CH4 and N2O, which cannot be considered as neutral, because these gases are not removed from the atmosphere during the growth of the biomass. Efforts to increase the use of alternative energy sources were maintained.

DIRECT BIOGENIC EMISSIONS – BIOMASS (tCO2eq)

 
 

Emissions Avoided

Bunge Brasil, in order to achieve an ever cleaner energy matrix, invests in the use of renewable energy sources. To this end, it seeks different types of biomass, such as timber (from planted forests), sub-products from crops, sugarcane bagasse and other substitutes for fossil-based fuels. 3.9 and EN18

EMISSIONS OF GHGs AVOIDED (tCO2eq)


CDM Projects and Carbon Credits

Bunge has a department that is dedicated to taking advantage of carbon credits resulting from its operations, thereby transforming the need to mitigate climate change into an additional business opportunity.

In 2011, CDM (Clean Development Mechanism) projects resulted in a reduction in greenhouse gas emissions, in the fertilizer and renewable energy sectors, in the order of 350,000 tons of CO2 equivalent across Brazil. The precise details are confidential; however one can state that this result was obtained through the funding of projects in these sectors whose credits obtained were, subsequently, traded in accordance with the precepts of the Kyoto Protocol. The total carbon of these projects represents 23% surplus of Bunge’s total emissions, over the period (scope 1 and 2 of the Greenhouse Gas Protocol), which signified that the company operated promoting  a positive balance in CO2eq, helping directly, therefore, in the fight against global warming.  In 2012, Bunge starts operating, also, in the voluntary carbon market.EC2

By using a hypothetical calculation, one can infer that by using biomass to supplement its energy needs, instead of fossil fuels (such as fuel oil), the Company’s Food & Fertilizer Business Units are able to avoid emissions equivalent to 571,325 tons of CO2eq, as shown in the graph above. The reduction observed in the avoided emissions is due to lower direct energy use, between 2010 and 2011. In 2011, less direct energy has been consumed by the Food and Fertilizers business units, resulting in a reduction in emissions avoided.

The business units Food & Ingredients and Fertilizers avoided emissions equivalent to 571,325 tons of CO2.

Initiatives for reducing greenhouse gas emissions and the reductions actually obtained EN18

Bunge already works with 93% of renewable sources in its energy matrix, compared to 47.5% on average in the rest of Brazil’s productive sector (according to data in the 2011 National Energy Statement - Balanço Energético Nacional). The company also achieved, in 2011, its target for using timber 100% from reforested sources, which had been set as a target for 2012.

More than 72% of the Fertilizer Business’ energy matrix is made up of fuel of a renewable origin (biomass). The Food & Ingredients business works with 92% of renewable sources, a percentage that reaches 93% in the case of Sugar & Bioenergy. Emissions of CO2 relating to this burning have a potential impact that is lower than that of emissions from the burning of non-renewable fuels.

Bunge registered an increase in performance in the use of energy sources to generate heat/vapor and selection of materials according to their energy-producing potential. As in 2009 and 2010, some initiatives to substitute energy sources were implemented and similarly contributed, in part, to the reduction in emissions per ton produced at the company’s industrial units.  

In terms of the emissions of substances that destroy the ozone layer, by weight, Bunge did not register significant emissions of this kind associated directly with its productive processes.

Other indirect emissions relating to Greenhouse Gases (GHGs)

Due to its extensive network of suppliers throughout the country, Bunge Brasil still lacks the ability to calculate Scope 3 emissions in a comprehensive and systematic way, but is working on internal processes for implementing these calculations in the mid-term.

Emissions of ozone-depleting substances by weight EN19

Bunge Brasil does not have significant emissions of ozone-depleting substances. The Food business, despite the use of cooling gas in its refrigeration chambers, also presents no significant emissions of such substances, because these gases are used in a closed loop.

Other emissions EN20

The Fertilizers business, as well as business unit NOx , SOx , particulate matter and ammonia. At the Food and Sugar & Bioenergy units, emissions of these gases (when applicable) comply with environmental legislation, although, there is no data measuring levels of these substances available.

The Food business uses a variety of processes to reduce or neutralize the significance and extent of environmental impacts:

  • Preventitive maintenance plans;
  • Monitoring of processes to assess opportunities for improving equipment;
  • Control of atmospheric pollution using gas washers and dust collectors;
  • Management of waste through the reuse and recycling of materials;
  • Treatment of liquid industrial effluents;
  • Use of renewable energies and programs aimed at reducing factory-based energy consumption.

In Sugar & Bioenergy, the NOx and SOx are only generated through the burning of fuels in industrial equipment and machinery, and in diesel generators, which equate to less than 0.3% of the total energy consumed. The emissions of these substances by the fertilizer business were as follows:

Atmospheric emissions (kg/year) Fertilizers
Ammonia 19,817
Fluoride 6,894
Particulate Material (PM) 363,254
NOx -
SOx 89,334
TOTAL (kg/year) 479,299


Energy

Water Consumption EN8

The sugar and bioenergy plants are authorized to obtain water supplies for industrial purposes in accordance with applicable legislation, with a reference flow of between 90 and 95% of the flow of the above-ground water source, depending on the local state legislation. The same applies to the agricultural business. There are some authorizations in place that specifically condition the use of this resource so as not to significantly affect its source of supply.  

Bunge is continuously developing mechanisms and processes aimed at reducing the consumption of water in its industrial processes, and at using water and other non-renewable resources rationally in managing operational efficiency.  

The bulk of the water consumed by Bunge companies is obtained from rivers, lakes, wetlands and artesian wells. The Fertilizer business is characterized by a low level of water consumption in its productive processes, at most of its units. At the units that use water in their productive processes, namely Ponta Grossa and Rio Grande, this consumption is kept down by the use of rainwater in these processes. All the plants are authorized to obtain water for their activities and, therefore, there are no restrictions in place as to its use.   

A smaller volume of water is supplied by public water utilities. Crushing and Edible Oils operations are not considered to be major consumers of water when compared to industries where water is considered an important raw material. In operating plants, the use of this resource has generally been associated with utilities (cooling etc.). Based on this fact, technically, this resource is almost totally returned to its watershed of origin.

There are no water sources significantly affected by the activities of Bunge Brasil.

Consumption of water by source (in m3) Food Fertilizers Sugar & Bioenergy Bunge Brasil
  2011 2010 2011 2010 2011 2010 2010
Surface water 178,766 204,781 - - 20,702,175 20,880,941 204,781
Ground water 3,521,504 3,462,908 134,071 143,939 2.648.018 6,303,593 3,606,847
Public utility supply 459,474 457,443 98,968 104,587 - 558,442 562,030
Rainwater - - 29,008 - - 29,008 -
TOTAL 4,159,744 4,125,132 262,047 248,526 23,350,193 27,771,984 4,373,658

The growth in water consumption, compared to the year 2010, was mainly driven by the inclusion in 2011 of consumption data from the area of ​​Sugar & Bioenergy. The comparison of the indicator evolution will be possible from next report on.

Total and proportion of water that is reused and recycled EN10

The levels of recycling and water reuse at Bunge have been maintained, mainly due to the fact that no new factory processes have been implemented. Since the quality of water is a variable of great importance in the manufacturing areas, efforts have been more focused on waste reduction and reuse in support activities (cleaning etc.).   

Reused/Recycled Water - 2011
Total Water Withdraw (m3) 27,771,984
Quantity of reused recycled water (m3) 11,485,017
% of reuse/recycling 41%

At the mills, all liquid effluents are reused in their processes. This reuse applies both to the industrial process as well as to the agricultural area.

At the Food unit, the total amount of water recycled or reused reached 220,882.4 m³, equivalent to 5.3% of the total consumed in the operations of crushing and edible oil production. The levels of recycling/reuse have been maintained, because once again, no new factory processes have been implemented in this area.

In addition to maintaining controls in the maintenance and cleaning of systems in refineries, reused water has the following applications:

  • For recirculation in cooling systems and for washing sugarcane, which are closed circuits;
  • For incorporation into stillage and use in fertirrigation.
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Commitment to Brazil. Field to table.
Bunge Brasil's Sustainability Icons
Represent the Social, Environmental and Economic dimensions of the actions and projects of the company in the Country. Learn more about Bunge Brasil Sustainability Platform in
www.bunge.com.br/sustentabilidade.
The Sustainability
Platform is a global
effort to ensure that
business performance
is enhanced on four
main fronts
Sustainable Agriculture Bunge is committed to raise awareness and train farmers to produce in order to reduce environmental impacts and maximize the use of finite natural resources.
The Sustainability
Platform is a global
effort to ensure that
business performance
is enhanced on four
main fronts
Climate Change Climate Change can bring significant impacts to food production worldwide. Therefore, Bunge believes it is a key factor in sustainability analyzes.
The Sustainability
Platform is a global
effort to ensure that
business performance
is enhanced on four
main fronts
Healthy Diets Offering safe and beneficial products to health. Bunge works to identify customer needs and provide the best food ever in the market.
The Sustainability
Platform is a global
effort to ensure that
business performance
is enhanced on four
main fronts
Waste Reduction Development of mechanisms and processes for the reduction of waste in industrial processes and expansion of the rational use of water and other non-renewable resources in the management of operational efficiency.