GRI Standard & Reporting Boundaries

GRI Standard & Reporting Boundaries

2019|20 Reporting Boundaries
 

ORGANISATIONAL REPORTING BOUNDARIES 

The performance data that are material to AGRANA's business activities were generated in accordance with the Global Reporting Initiative (GRI) Standards, "Core option". 

The organisational boundaries for the 2019|20 reporting of the non-financial (i.e., sustainability) matters integrated in this annual report encompass all AGRANA Group companies worldwide and match the set of companies included in the Group’s financial consolidation. The non-financial information thus does not include the joint ventures of the AGRANA Group – the HUNGRANA group (in the Starch segment) and AGRANA-STUDEN group (in the Sugar segment) – except where explicitly indicated otherwise. In total, the GRI reporting and sustainability reporting therefore covers 55 of the Group's 57 production sites worldwide.

MANAGEMENT APPROACHES FOR MATERIAL ASPECTS & RESULTING CONTENT BOUNDARIES

 Supply chain matters/topics

 1.    Environmental and social criteria (i.e., labour practices and human rights) in the procurement of agricultural raw materials and intermediate products

In view of its core business of processing agricultural raw materials and of the associated high procurement volumes and costs, AGRANA limits its reporting scope for the supply chain to suppliers of agricultural raw materials and intermediate goods (such as frozen fruit pieces). AGRANA has set out its requirements for agricultural suppliers in its principles for the procurement of agricultural raw materials and intermediate products, a document which, for the social criteria, refers to and thus incorporates AGRANA’s Code of Conduct. The principles for the procurement of agricultural raw materials and intermediate products are also incorporated in supply contracts and are thus binding for suppliers. Compliance with these principles is verified in different ways appropriate to the given raw material category, procurement model and business segment.

 2.    Biodiversity

AGRANA as a processor of agricultural raw materials is dependent on the availability of these inputs and thus on the functioning of local ecosystems. For this reason, biodiversity is important to AGRANA especially in its upstream value chain, i.e., in the farming landscape. In the annual report, to the extent possible, biodiversity aspects of raw material procurement from contract growers are published in the respective business segment's section of the report. AGRANA also carries out some projects at its business locations to protect or increase species diversity. 

3.  Water in the upstream value chain

Due to limited availability and reliability, data on water use in the upstream value chain (i.e., in the production of agricultural raw materials) do not exist for all raw materials used worldwide and are therefore not reported.

Environmental and energy topics of AGRANA's production

The basis for AGRANA's management of environmental and energy aspects is its environmental policy.

1.    Energy consumption and emissions

AGRANA processes organic inputs such as sugar beet, grain, potatoes and fruit whose crop volume, sugar or starch content and quality are subject to annual fluctuation as a result of changing influences during the growing season and harvest. Product quantities at each site, along with the associated energy consumption, thus vary from one reporting season to the next. Presenting absolute totals for energy consumption and emissions would therefore not be meaningful. AGRANA consequently only reports energy intensity and emission intensity per tonne of product manufactured (core and by-products), by business segment.

AGRANA’s reporting of energy use and emissions is confined to Scope 1 (direct energy consumption and  emissions) and Scope 2 (indirect energy consumption and emissions), as data for Scope 3, such as pertaining to the agricultural supply chain, are difficult to obtain or in some cases (such as business travel) only contribute relatively little to the CO2 footprint compared to Scope 1 and 2. Generally speaking, absolute energy consumption and emission figures are not very meaningful in terms of efficiency improvements because of the sometimes sharp annual fluctuations in raw material processing quantities (especially in the Sugar segment and the fruit juice concentrate business) and the associated inherent variability in energy consumption.

2.    Water and effluent (wastewater)

Water is one of many inputs in the production processes of the AGRANA Group. The use and discharge of water at all sites follows sustainable practices in accordance with the AGRANA environmental policy. In its processes, AGRANA frequently utilises the water contained in the agricultural raw materials.

AGRANA reports water and wastewater figures solely for its core business, the processing of agricultural raw materials in its production plants. Absolute values of water withdrawal and discharge have only very limited meaning as a measure of water use efficiency, given that annual raw material processing quantities fluctuate.

3.    Waste

Agricultural raw materials are far too valuable for AGRANA not to utilise them to the fullest. The Group-wide principle of complete utilisation is entrenched in the environmental policy and is practiced by producing both a wide range of high-quality foods and intermediate products for downstream industries and – particularly in the Sugar and Starch segments – manufacturing a very broad portfolio of by-products, especially feedstuffs and fertilisers. These not only contribute significantly to the economic bottom line but also close nature's material cycle by returning minerals and other nutrients to the land and the food chain.

4.  Transport

Although the transport of raw materials and products only represents a comparatively low share of mostly less than 10% of the carbon footprint of AGRANA products (depending on the calculation method and country), the Group strives to make transport activities as sustainable as infrastructure and economics will allow. Thus, the 2019|20 modal split for inbound and outbound logistics in the AGRANA Group was approximately 75.4% road, 17.8% rail and 6.8% water.

Employee matters, including working conditions and human rights, in respect of AGRANA employees

The basis for AGRANA's relationship with its employees is set out in the AGRANA Code of Conduct, which was newly revised in 2018|19, and for instance, prohibits any discrimination or harassment, forbids child labour and forced labour, addresses issues of health and safety in the workplace, and affirms the rights of free association and collective bargaining.

The employment relationships of about 70 % of AGRANA employees worldwide fall under collective agreements. The interests of approximately 80 % of staff are represented by a local employee council or union representative. At those sites where neither of these forms of representation exists, AGRANA maintains complaint boxes as a formal channel available to all employees for reporting grievances regarding labour practices or human rights. A process is in place for the prompt and fair handling of the complaints received.