Governance and Risk Management

Bunge maintains corporate governance mechanisms to disseminate its vision, mission, values and policies to all employees. These mechanisms are important because they strategically guide our processes and mindsets towards sustainable growth of our business and our country and the construction of ethical and transparent relations with all our stakeholders.

Governance structure

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At Bunge Brasil, the main governance body is the Executive Committee (COE in the Portuguese acronym). Responsible for strategic decisions and for determining the matters and actions to be taken by the business and corporate areas, the Executive Committee is oriented by the strategic targets and directives laid down by the company's headquarters in the United States, with sustainability as a constant.

Comprising members who do not have a pre-established term, the Executive Committee meets at least once a month. The members are the CEO (who is also the coordinator of the committee), and the vice presidents of the business areas, Finance, People & Management and Corporate Affairs.

 

The main sustainability-related topics addressed by the Executive Committee in 2015  

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  • Non deforestation policy
  • The Pará state Green Grain Protocol
  • Sustainable Soy Certification
  • Soy Moratorium
  • Sustainability trends that affect business relationships.

 

 

The governance structure also encompasses the extended Executive Committee, which includes the executives directly subordinated to the vice presidents. The extended COE meets on a quarterly basis to discuss results and questions having impact on the company's businesses.

The vice president of Corporate Affairs is responsible for strategic management of sustainability, with technical support from the Sustainability area. The VP of Corporate Affairs reports both to the Executive Committee and to the extended Executive Committee regarding sustainability-related matters and the development and approval of associated policies.

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Environmental aspects for the company´s operations are handled by sub-committees subordinated to the PQSE (Productivity, Quality, Safety and Environment) area, with which the Sustainability area is directed related. Social impacts on the supply chain involve the Sustainability area and the commodities origination, materials and services procurement teams. There are directors in the People & Management area who are responsible for the professional development of employees and for managing company processes.

Company strategy is reviewed on an annual basis to ensure that management of impacts, risks and opportunities arising from economic, social and environmental questions is aligned with the performance expectations and interests of company stakeholders. This process takes into account the opinions and the involvement of stakeholders, which are formalized in the Materiality Matrix, which, in turn, is approved by the VP of Corporate Affairs and validated by the Executive Committee (further information in Stakeholder Engagement). This matrix also provides the basis for the development of this Sustainability Report.

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Vision, Mission and Values
Transparency and ethics

We believe it is important to promote clear and frank relations between the members of the Executive Committee and company employees. For this reason, there are channels such as the intranet and the addresses sustentabilidade@bunge.com and bunge.comunicacao@bunge.com, through which employees may make suggestions and recommendations to COE members. This mindset helps strengthen the information flow between leaders and subordinates.

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With a view to enhancing business performance and ensuring an appropriate financial return from the operations, extended Executive Committee meetings include talks and debates with renowned specialists addressing the economy, society, employee qualification and engagement, the community and the environment, as well as Bunge Foundation projects.

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The COE member evaluation process is uniform and transparent because it is based on performance targets, as occurs with all company employees. The process includes self-evaluation tools, pre-established performance indicators, business area results, as well as the company's overall performance in economic, financial, social, environmental and safety aspects. Performance in all these aspects influences the variable remuneration of Executive Committee members.

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CEOs have sustainability targets

Since 2015, the Bunge Brasil CEO has had a specific sustainability target, which is translated into targets for the vice presidents. These targets are incorporated into performance evaluation and influence variable remuneration for company executives. Targets are set for all company subsidiaries based on the Bunge global CEO's sustainability target.

 

Risk management and policies

Governance at Bunge involves a series of instruments such as internal and external audits and the Code of Conduct, as well as specific policies providing guidance on behavior for all employees. These tools are designed to drive ethical and transparent conduct in accordance with the laws and regulations in the country.

The company also has specific tools to provide support for the businesses in managing risks. One of these is the Enterprise Risk Management (ERM) project, which maps strategic, operational, credit and market risks for the businesses. All risks are monitored continuously, with mitigation plans drafted for the most important ones. Due to their importance for Bunge, market risks are monitored by a specific project which identifies potential risks in industrial and trading (commodity purchases and sales) activities and works out the consequences they might have on corporate results.

To drive sustainable business development, the company has specific policies, such as: Anti-corruption policy, Biodiversity policy (further information in the chapter Promoting Sustainable Agriculture), Sponsorship policy, Supplier Relationship policy, Palm Oil Origination policy, Non Deforestation policy and Sustainability policy.

Audits

At Bunge Brasil, the audits undertaken by the Global Internal Audit (GIA) provide support for the Bunge Limited Board of Directors in supervising governance, risk management and the internal control environment. They also help the company to achieve its goals through the adoption of a proactive, disciplined and systematic approach to assessing and enhancing the effectiveness of controls, governance processes and operations. The company also uses independent audits to review its financial statements. Lastly, Bunge Brasil has an Ethics and Compliance area which conducts audits in fraud and corruption-related questions.

Code of Conduct

Integrity is a fundamental value for Bunge: all company actions are based on honesty and fairness and ensure that the company has a reputation in the market for being serious and competent. Bunge updated its Code of Conduct in 2014, communicating the changes to company employees worldwide. The modification resulted in a friendlier format for the document, with the division of information into chapters, using figures, examples and questions and answers to facilitate understanding of routine matters.

The code sets forth guidelines for the conduct expected from the CEOs, the vice presidents, directors and all other company employees. There is a single code for Bunge Limited and for all company subsidiaries. The CEO of the organization is responsible for the adoption and application of the code guidelines in the respective companies. However, precisely because it is a global company, Bunge is always attentive and sensitive to cultural questions within the countries in which it operates. This ensures that the organization respects the communities and the environments in which it does business.

For example, the code sets forth how to avoid and how to deal with conflicts of interest. It establishes that employees at all levels must not be involved in situations in which private interests interfere with the company's interests. In the event of such interference, employees must immediately communicate the case to their immediate superior, to the Legal department or to the Global Ethics and Compliance area (GEC).

When an employee is not exercising his/her function in the company, he/she may not reveal or use any Bunge-related information without authorization, even if such information is not confidential, exclusive or reserved. The Code of Conduct classifies confidential information as information that is not in the public domain, that may be of use to competitors. The Bunge Code of Conduct may be accessed here.

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Global Sustainability Policy

This policy reflects the company's commitment to promoting development through a balance between economic growth and social and environmental responsibility. The main directive is based on pursuing sustainability in all the company's businesses.

Principles:

  • We strive to be good citizens by contributing to the economic and social development of the communities where we work;
  • We work to achieve a high level of environmental performance by adopting science-based, culturally sensitive and pragmatic best practices and by promoting these practices within our supply chain;
  • We partner with companies and organizations to promote and apply sustainable practices; and
  • We communicate openly about our activities and maintain a constructive dialogue with stakeholders.
  • We apply these principles across our operations, pursuing both global and regional goals.
Bunge Brasil Sustainability Policy

Aligned with the global policy and validated in consultation with the company's stakeholders, the policy brings the different areas of activity together around the establishment of shared commitments. The objective is to promote balance between economic growth and social and environmental responsibility.

Principles

Day to day routine

Associate business objectives with
socio-environmental responsibility issues.

All our businesses are governed by social and environmental responsibility. This ranges from the decisions to expand in Sugar & Bioenergy to the possibilities of using post-consumer waste, with investments and opportunities to maintain a sustainable cycle for projects and partnerships.

Go beyond mere compliance with local environmental legislation and other requirements applicable to its processes, products, and services.

Bunge participates in the Amazon Soy Moratorium; in its processes, the company pursues certifications that attest to its sustainability performance, such as ISO 14000, North American EPA certification, the Brazilian National Commitment Seal and Bonsucro certification, as well as participating in commitments to end burning in sugarcane plantations; in the product area, the company is active in packaging reverse logistics.

Promote continuous improvement of the environment and sustainable development, applying management principles, performance indicators and environmental risk assessments.

We adopted the GRI sector supplement in 2011. In this reporting cycle we applied the latest G4 version of the GRI indicators. In 2015, Bunge developed and initiate the use of an environmental indicator management system, for collection, consolidation and environmental performance analysis of all company´s industrial sites.

Invest in the development of partners, who must understand the concepts used and present their vision of the process.

We work with a number of partners to promote sustainable development. These include industry associations, NGOs, public bodies, suppliers and customers that are our allies in sustainability projects.

Maintain an open and ethical posture in all activities and business relationships. Generate value, jobs, income and wealth for the communities and countries in which we operate.

Company policy is to meet all press demands. Based on materiality assessments, we promote balanced, transparent communication on topics of interest. For the business and supply areas, we pursue an open policy with respect to our relations with suppliers.

Demonstrate social responsibility, aiming to fulfill expectations of the communities in which it operates, and encourage responsible use of natural resources.

Our social investments correspond to the activities we promote in diverse communities. These consist of programs and projects which provide the communities with direct benefits, such as social interaction and valuing local initiatives. Specifically, we contribute to the preservation of the Atlantic Rainforest through the maintenance of the Figueira Branca Reservation in Santa Catarina.

Contribute to citizenship development by means of actions which enhances education and knowledge.

Through the Bunge Foundation, employee volunteers work directly in the communities surrounding our operations. Our programs reach thousands of people throughout Brazil.

 

Environmental Policy

The policy ensures business is conducted with care for the environment, promoting a commitment to environmental quality.

Principles:

  • We comply with environmental laws and requirements applicable to our processes, products, services and projects.
  • We promote continuous environmental improvement by applying environmental management principles, by utilizing environmental risk assessments and by measuring environmental performance associated with our facilities, processes, products, services and projects.
  • We seek environmentally sustainable development through pollution prevention, waste minimization, reuse and recycling in our processes, products, services and projects.
  • We demonstrate social responsibility by seeking to meet the environmental needs of our communities and by promoting the responsible use of natural resources.
  • We engage employees in environmental sustainability efforts and provide employee training to enhance environmental management practices.
Supplier Relationship Policy

We seek to ensure transparency in procurement processes and in relations with our commercial partners, the reason the company has its supplier policy. Our objective is to ensure governance and sustainability in all our operations throughout the production chain.

Principles:

Adoption of the principles and mechanisms necessary to detect, prevent and eradicate corruption set forth in the UN Convention against Corruption. Thus, the supplier must undertake to obey any applicable anti-corruption laws, including standards related to protection against and combating money laundering, the concealment of property, rights or assets and any similar illegal practices in all their relations with Bunge.

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Suppliers' obligations include

  • The prohibition of payments, the offer of goods or any kind of advantage to public servants with a view to gaining or retaining business or obtaining unwarranted advantages;
  • To ensure that all operations are properly reflected in their books and records;
  • To not use either directly or indirectly irregular child or adolescent labor in accordance with the applicable legislation; and
  • To not acquire, intermediate, transport or commercialize products or sub-products of animal or vegetable origin produced in areas under embargo in accordance with Brazilian legislation (Decree 6.514/08).

Suppliers must undertake to produce merchandise in full compliance with the country's labor, social security and social legislation, as well as any legal requirements related to human rights, in particular not subjecting employees to degrading or sub-human working conditions, not using slave or forced labor, not restricting employees' constitutional right to freedom of movement, nor threatening them or harming them physically for any reason, including debts of any nature.

The supplier undertakes to ensure that:

  • All the information provided to Bunge on any occasion is true, complete, correct and accurate;
  • It has the knowledge, experience, qualifications, labor, infrastructure, materials, tools and inputs required to produce the merchandise sold to the company;
  • It will obtain and maintain, at its own cost and under its own responsibility, within legal terms, all registrations, licenses, permits, authorizations, approvals, inspection reports and other requirements imposed by the competent authorities for the regulation of its activities, such as professional inspection bodies, the ministries and departments of Health, Labor and the Environment, the National Institute of Industrial Property (INPI), regulatory authorities, the Central Bank of Brazil, government agencies, Ibama, and others;
  • The activity performed should not source products (soy) from areas deforested after July 2008 and should not use workers under the minimum age, or in violation of legislation related to minimum salaries, working hours, among others.

The supplier must comply with all laws, regulations and standards related to environmental, sanitary and biosafety protection, maintaining legal reserve and environmental protection areas and having the licenses necessary for the performance of its activities. The supplier further undertakes to adopt all the relevant measures to produce the merchandise commercialized in accordance with best agricultural practices, without harming or putting at risk the environment, assuming full liability for any violations in the administrative, civil or criminal spheres.

The supplier must undertake to use crop protection products rationally at all stages of the process (sowing, cultivation and harvesting) in accordance with agronomic guidelines and respecting all grace periods, ensuring full compliance with the legislation in force.

Bunge reserves the right to terminate any purchase and sale agreements in the event that the supplier is embargoed/prosecuted by competent authorities for non compliance with legal obligations related to the environment, to human rights or further, for infringement of the Soy Moratorium, by sourcing products from areas deforested after July 2008.

In accordance with articles 18, 47 and 54 of federal decree # 6.514/08, suppliers are obliged to immediately inform Bunge in the event of an embargo or fine, to send Bunge a copy of the terms of the embargo/fine and to substitute the products from the embargoed area with others cultivated in areas free from embargo. To this end, they must submit documentary proof that they are in compliance with the environmental legislation.

Non deforestation Policy

Bunge believes that all agricultural value chains should be sustainable and should benefit local communities financially and socially. The company is committed to applying policies that reflect this belief in its businesses and value chains and to collaborating with stakeholders and other participants in the value chain - from producers to consumers - to develop practical approaches that enable large-scale implementation of this principle.

Based on this, in September 2015 Bunge Limited released its Global Non Deforestation Policy. In this document, Bunge commits to:

  • Eliminate deforestation from our agricultural supply chains worldwide, employing tested methodologies that incorporate carbon and biodiversity protections,
  • Respect local and indigenous community rights and apply free, prior and informed consent for land purchases and use,
  • Enhance the traceability and transparency of key supply chains over time,
  • Publicly disclose progress on our efforts.

In 2016, all the Bunge subsidiaries will work jointly on an implementation plan for the commitments undertaken. The full content of the new policy is available at: www.bunge.com.br/sustentabilidade/politicas

Anti-corruption

Bunge is a global company whose policy is to conduct business ethically and in compliance with anti-corruption legislation. Violations of the FCPA (Foreign Corrupt Practices Act) have serious consequences for the company and its employees since the US government imposes heavy fines on those not complying with the law. Moreover, in 2014 the Brazilian government introduced an anti-corruption law which punishes companies and employees for corrupt practices involving civil servants.

The company does not tolerate practices that might be considered acts of corruption. Due to that, there are policies in place that cover such questions such as the Code of Conduct for employees and the Supplier Relationship Policy. There is also the Global Anti-Corruption Policy, implemented in July 2014, which sets forth more comprehensive assessment requirements for service providers and suppliers, controls on spending and spending on meals and travel involving government bodies, donations, presents and gifts, training, e-learning, disclosure, reporting channels and certification of the anti-corruption policy (to coordination level). In 2015, 4,456 employees at all levels received face-to-face and/or online training in the Code of Conduct and in the Anti-Corruption policy. All company's commercial operations were subject to the requirements of the Anti-Corruption policy.

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Furthermore, there are clauses related to the FCPA Anti-Corruption policy in all contracts signed with Bunge suppliers.

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Violations of the Code of Conduct may be reported by internal and external stakeholders to the highest level of governance at Bunge via the intranet and through meetings with local directors and leaders. Reports may also be made via the following email addresses sustentabilidade@bunge.com, comunicacao@bunge.com, www.bunge.com/helpline or via the telephone number 0800-892-1879. The service is run by a specialized independent third-party.

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Cases of corruption

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In 2015, there were no cases of corruption involving Bunge employees and public officials. Neither the company nor its employees were involved in corruption-related law suits.

However, six employees were dismissed as a result of deviations in conduct related to conflicts of interest, theft of merchandise, bribes paid by freight contractors and providers of services for employees in the areas of logistics, procurement and others with a view to obtaining unwarranted advantages in product and service procurement processes.

 

Other commitments

Bunge understands that all relations among employees and between employees and external stakeholders must uphold moral and ethical standards of conduct. Based on this, the company publicly repudiates the exploitation of child labor throughout its production chain. Regarding diversity, Bunge encourages its commercial partners to ensure their work forces reflect and represent the profile of the population in the areas in which they operate.

We also believe that respect in interpersonal relations is fundamental. For this reason, Bunge condemns any form of sexual or psychological harassment both on and off its premises. The company Human Resources and Organizational Development areas are fully prepared to deal with any reports related to harassment. Similarly, corrupt practices are not tolerated. Relations with suppliers and other audiences are governed by the Code of Conduct and other policies which set forth guidelines on these questions.

 

NEW BLUE BOOK

Ten years ago, Bunge published the first edition of its Blue Book: a small but important document that simply and succinctly describes who we are as a company, what we aspire to in our work and the positive impact we provoke on the world.

In 2015, the Blue Book was reviewed, taking into account the advances and the accentuated growth Bunge has undergone over the last ten years. Many of the ideas are the same as in the previous version. What is new are the four key behaviors:

  • We put Safety first;
  • We act like owners of the business;
  • We strive to be the best;
  • We cultivate an entrepreneurial spirit.

Click here to access the Blue Book and learn more about the Bunge way of being.

Commitments and best practices

Attuned to company values and policies, Bunge assumes commitments to encourage the adoption of best practices in the sectors of activity, aimed at driving the sustainable development of the country. Worthy of note is our support for the following commitments and pledges:

  • Soy Moratorium, in the Brazilian Amazon, since 2006;
  • Pact to Eradicate Slave Labor in Brazil. Since November 2013, Bunge has been represented in this national pact by the industry association Abiove;
  • National Commitment to Enhance Working Conditions in Sugarcane;
  • We do not acquire agricultural products from areas embargoed by Ibama, the federal body responsible for enforcing environmental policy;
  • Through Abiove, we are signatories to the Green Grain Protocol in the state of Pará, a social and environmental responsibility protocol for grain produced locally;
  • Dissemination, training, verification and recognition of sustainability measures adopted by suppliers in the agricultural production chain;
  • The United Nations (UN) Millennium Development Goals;
  • Industry agreement on reverse logistics for post-consumer packaging waste in accordance with Brazil's national solid waste policy.

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Bunge's social and environmental responsibility is further demonstrated by participation in forums and projects organized by associations and institutions linked with its areas of activity:

  • Brazilian Wheat Industry Association (Abitrigo)
  • Brazilian Foodstuffs Industry Association (Abia)
  • Brazilian Vegetable Oil Industry Association (Abiove)
  • Better Sugarcane Initiative (Bonsucro)
  • Corporate Coalition for Recycling (Cempre)
  • União da Indústria de Cana-de-Açúcar (UNICA)

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Awards and acknowledgement

In 2015, the company received 32 awards in recognition of product quality and management practices in the economic, environmental and social areas.

The most sustainable company in Brazil

Bunge Brasil was elected the most sustainable company in Brazil in 2015 by the Guia Exame de Sustentabilidade, the most prestigious award in the sector. The company was also acknowledged as the most sustainable company in agribusiness for the seventh year running.

Published by Editora Abril, this Guide is the major reference in sustainability in Brazil. It awarded 68 companies in 21 sectors for outstanding management in sustainability, as well as the ten best in ten different categories. The choice of Bunge as company of the year was due to the consistency of its sustainability measures, which have been acknowledged in the Brazilian agribusiness segment since 2009.

Among the Best Companies to Work In

In 2015, Bunge Brasil was included in the ranking of the 150 Best Places to Work in Brazil by the magazine Você S/A. This select list acknowledges companies that value their employees , based on their people management practices and opinion of own employees.

Below is the full list of awards:

 

 

 

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