Quality and innovation

 G4-PR1

It is a priority for Bunge to provide safe and quality products that meet market needs with excellence and healthiness.

The health and consumer safety are key aspects from development to the final characterization of our products. They should be of the best quality, appropriate to the indicated applications and safe as to its composition. In addition, packaging must provide safety during storage, handling and consumption.

Quality and food safety are non-negotiable values, so that all employees have a key role in all stages of the process.

Under the management system, procedures for checking the conformity of each raw material and inputs, meeting legal standards and following the best manufacturing practices, warehousing and distribution are strictly observed.

We continuously strive to improve the Quality and Food Safety Management System thus innovation, whether products or processes, is stimulated in the areas of company and among suppliers. In this sense, Bunge maintains Inova, a program that seeks to promote the culture of idea generation in the employees. Suggestions are stored in Bank of Ideas and, if they have potential, can turn into structured projects, with the contribution of specialized committees composed of representatives from each area of the company. Despite the reduction in the number of ideas generated, the percentage of implementation of ideas went from 5.6% to 11.9%, from 2014 to 2015, which shows an increase in system maturity on the effectiveness of the implemented solutions.

Regulation and control

All Bunge products are regulated by the competent authorities in areas such as: mandatory information on labels (including composition, nutritional information, storage instructions, best by date, instructions for preparation and consumption, and packaging materials). Voluntary information, such as product benefits and consumption suggestions, are also compliant with legislation to ensure the accurate description of product characteristics. Bunge complies with all regulations and advocates the adoption of clear, accurate and visible labeling to help consumers make more responsible choices. In addition to guaranteeing the quality and safety of our products, this underscores our reputable positioning in relation to customers, consumers and regulatory agencies.

G4-PR3

The company has a series of control processes in place, such as the inspection of packaging upon arrival at the plants by the Quality Control area, with the rejection of any non-conformance. Moreover, all employees engaged in this process are trained in general and nutritional labeling. This guarantees document approval processes, mitigating the risk of irregularities in product labels. In 2015, Bunge recorded 13 cases of non-conformance related product labeling for the end consumer.

G4-PR4

The sourcing of inputs and primary packaging for the Foods & Ingredients area is also subject to rigorous control. Suppliers are only approved after being subjected to the following three-stage process:

1. In the first stage the Supply area carries out a prior analysis of the supplier, verifying production capacity, technological capacity, customer portfolio and financial soundness.

2. Following this, the Quality area assesses aspects related to product quality, environment, occupational health and safety, legal and food safety requirements. Potential suppliers perform a self-assessment for non-critical items (secondary components and packaging), whereas critical items (primary ingredients and packaging) entail an audit.

3. The last stage involves a technical evaluation by the Research and Development area to verify the potential supplier's capacity to perform at pilot and/or industrial scale.

Suppliers undergo constant quality evaluations and are submitted for re-approval at two-year intervals. Strategic suppliers are monitored on a monthly basis and are incentivized to implement continuous improvement measures. Since 2013, the Sustainability team and the Supply area have used a checklist which assesses suppliers not only for social and environmental impacts, but also for their capacity to supply the company in the long term. This results in an operational risk rating which drives improved management for Bunge.

In 2015, the company approved 33 new commercial partners, of which twenty were subject to self-assessment (61%), seven to audits (21%) and six (18%) with recognized certificates. Of the 275 suppliers approved during the year, 69 were cases of (25%) reassessment.

TOPO