Adverse weather conditions and changing climate patterns may affect the availability, quality, and price of agricultural commodities and their derivatives, provoking a significant impact on the origination of raw materials and, consequently, on the company’s operations and income. The potential physical impacts of climate change are uncertain and may vary according to the region or crop, and may include changes in rainfall patterns, droughts and temperature levels.
The company identifies and tracks all climate change-related risks and opportunities, taking into account studies available on the question, in particular a report prepared by Unicamp and Embrapa.
Click here for download the report.
Differently from the previous year, in 2015 there were no very significant adverse weather conditions for the company's operations. In spite of this, efficient water use in our operations receives careful attention and is subject to ongoing improvements.
Agribusiness is currently one of the main drivers of the Brazilian economy. It is a fast growing sector that generates jobs, income and foreign exchange. It is characterized by innovation and knowledge and is driving the development of a renewable energy matrix.
In the specific case of biofuels, in 2009 the European Union published its Renewable Energy Directive (RED) requiring member states to increase the share of renewable energy in their energy matrices by 2020. Although it has undergone a number of revisions, the RED establishes sustainability requirements for the production of biofuels and biomass, as well as greenhouse gas (GHG) emission reduction targets, subject to verification by certification standards.
Similarly, through the Environmental Protection Agency (EPA) the US government has established sustainability criteria for the importation of sugarcane ethanol and its derivatives which include GHG emission data related to biomass production.
Attentive to these trends, since 2011 Bunge Brasil Sugar & Bionergy business has been operating with Bonsucro certification for sugar and ethanol. Currently three of the company's mills produce approximately 4.2 million metric tons of certified sugar cane, which allows the commercialization of ethanol and sugar in the regions requiring certification.
Since 2012, Bunge has operated with certified soy for the European market. This involves the Biomass Biofuel Sustainability Voluntary Scheme (2BsVs) standard which, like Bonsucro, is recognized by the European Directive for sustainable biofuel production. In 2015, Bunge operations exported some 360,000 certified metric tons - a 50% increase in volume compared with 2014 exports.
The 2BSvs standard establishes a number of criteria for sustainable biomass. These include: