Climate change poses threats to the economic development of companies. The sustained increase in the global temperature and the consequences on the frequency and intensity of meteorological phenomena affect the availability of resources, in turn motivating governments to respond with laws that regulate their use.
The vulnerability analysis in key aspects, such as availability of energy sources, and availability/scarcity of raw materials, are key elements to feed the risk–management plan and determine to what extent changes in climatic parameters, physical changes and changes in society require measures to adapt the value chain in which the businesses are developed.
As a 2020 strategy, we have defined some corporate goals to minimize the impact of activities on climate change. We seek to reduce energy consumption (kWh/t.p.) by 25%, advance in the use of cleaner energy sources (which represent 100% of the energy basket), and reduce specific GHG emissions (tons of CO2e/t.p.) by 33% (Scopes 1 and 2).
But beyond mitigating the impact on climate change, Grupo Nutresa works to reduce vulnerability and be prepared to adapt to future changes. This, through a permanent process of strategic surveillance and monitoring to maintain the risk matrix valid for the entire strategic region and be prepared with the design of strategies to adapt to climate change.
Grupo Nutresa advances in its Environmental Commitment to meet the challenges that climate change generates in the value chain.
Greenhouse Gas (GHG) Inventory
In the management to control and reduce GHG emissions, for four years we have measured the GHG gases generated by 20 production plants in Colombia. For three years, we have measured four plants located in the strategic region (Mexico, Costa Rica and Peru) and for two years, we have conducted emission measurements in the primary– and secondary–distribution process in Colombia.
This measurement has allowed implementing strategies to reduce emissions by substituting fuels, best operating practices, implementation of energy–efficiency programs and the reconversion of technologies with less impact on the atmosphere.
There is progress in broadening the base of the carbon footprint analysis of processes and products, which has served as a guide to determine which parts of the processes are more efficient and make changes to reduce emissions. In some processes, including the manufacture of TOSH biscuits, industrial chocolate and roasted and ground coffee, we have already adopted these practices and energy performance – especially in the efficient use of thermal energy through investment in latest combustion–technology equipment, utilization of waste heat streams, modification of production standards, and reduction of eco–design packaging materials, among others – has reduced emissions associated with energy consumption. This has permitted the implementation of mitigation and emission–compensation programs in the Biscuits, Coffee and Chocolate Businesses.
For 2014, noteworthy was the advance in the goals proposed for 2020:
GHG emissions (kg CO2e/t.p.)
We achieved a cumulative reduction of 21.0% in the GHG (Scopes 1 and 2) Emission indicator for the 2010–2014 period, significantly advancing against the goal established to reduce emissions by 33% by 2020.
Direct and indirect emissions for the purchase of electricity (Scopes 1 and 2)
Other indirect greenhouse–gas emissions (Scope 3)
Efficiency in emissions generated per ton produced improved by 6,87% compared to 2013, from 132,4 to 123,8 kg CO2eq./t.p.
The use of biomass represents 14% of the energy basket and means some carbon–neutral emissions of 25.075 tons of CO2e. If coffee grounds were not used as fuel, we would require the use of a fossil fuel, such as natural gas.
We continued (for the second consecutive year) the GHG inventory in the distribution process for operations in Colombia, in order to build a solid reporting basis to establish reduction plans in late 2015.
Emissions associated with the finished product logistics and distribution operation
Noteworthy is the continuous effort that has been made for the last six years when we began the first GHG inventories to determine the impact of industrial operations on global warming and climate change. After taking measurements for more than three years and conducting studies in the carbon footprint, some businesses headed in the design of specific programs to reduce, mitigate and offset those carbon emissions that cannot be eliminated in the productive stage. This year, we can speak of three initiatives in particular:
- We achieved carbon–footprint certification from ICONTEC for the TOSH Biscuit line manufactured in the Noel plant in 2013, complying with the requirements and the Publicly Available Specification (PAS) 2050 methodology, which represents an important advance in developing the “Tosh Brand Carbon Neutral” project. For 2015, we expect to complete the compensation phase of some 8.000 tons of CO2e to achieve a Carbon Neutral brand.
- The Coffee Business achieved Carbon Neutral certification from ICONTEC for CO2e emissions for the roasted– and ground–coffee process in its plants in Medellín, Bogotá and Santa Marta (the plant in Ibagué only produces soluble coffee), through the purchase of bonds for the “Incorporation of Biodiversity in the Coffee Sector in Colombia” project, led by the Colombian Federation of Coffee–Growers and verified by ICONTEC.
- The Chocolate Business obtained carbon neutrality, awarded by ICONTEC, for the specific process of manufacturing industrial chocolate. This certification includes the emissions from all processes, from the reception of raw materials – cacao – to obtaining the end product in the Chocolate Business factory in Rionegro. Emissions are neutralized through the execution of compensation activities in the forestry sector, equivalent to 144 tons of CO2e in 2014.
The internal carbon–pricing project
During 2014, Grupo Nutresa developed a proposed model to incorporate a value on carbon emissions within the economic–feasibility studies for projects that are aimed at, or that arise in, the reduction of GHG emissions. This will permit directing technological updating to a low–carbon industrial development. The inclusion of a carbon price for the internal assessment of CapEx projects will be launched during 2015.
Reduction of Greenhouse Gas (GHG) emissions
All initiatives that reduce the net consumptions of thermal and electric energy also contribute to reducing the greenhouse gas emissions.
Emission of ozone – depleting subtances
In 2014, the emission of gases that deplete the layer of ozone (SAO) reached 0.134 tons of CFC – 11 equivalent. The Organization counts the leakage of R – 12, R – 22 and R409a refrigerants, The emissions of substances that deplete ozone are estimated, with the consumption of gases included in the Montreal Protocol registered in the different plants of the Organization, in weight and emission factor related to CFC – 11. For the mixtures, the composition is identified and the emissions are estimated according to the percentage of participation of each gas included in the Protocol.”
This indicator of 0.134 tons of CFC – 11 is composed as follows: 73.34 Kg of CFC – 11, National; and 59.88 Kg of CFC – 11, International.
Last year, this indicator was not reported for the international plants.
NOX, SOX and other significant air emissions
A continuación se presenta información relevante de la gestión del Grupo Nutresa en términos de gastos e inversiones para la protección del medio ambiente e información de reclamaciones ambientales.
Breakdown of the expenses and investments for environmental protection
This figures apply only for Colombia.
Environmental complains that have been presented, addressed and resolved through formal complaint mechanisms
Financial consequences and other risks and opportunities for the Organization’s activities due to climate change
In 2015, Grupo Nutresa will advance in the risk analysis of Climate Change and Corporate Water Risk to identify the areas that, due to effects of climate change and water scarcity, may directly affect operations.
Likewise, we constructed an improvement plan with the operations in the strategic region, in terms of sustainability. Specifically, for climate change, we decided to start with the measurement of basic indicators (fuel and electricity consumption) for those international companies that do not have indicators, which will permit having an adequate baseline to monitor improvements and have a GHG inventory in 2016.
Also, we will carry out a work plan with Grupo Nutresa’s ten most relevant agricultural supplies, aimed at mitigating the risks of climate change that some of them present, and reducing the impact in the value chain.
In line with the goals established to reduce the indicator of GHG emissions, the businesses have established plans for 2020 to reduce energy consumption through projects in technological reconversion, equipment updating and energy audits that permit reducing dependency on thermal energy from non–renewable sources (gas and fossil fuels), increase the share of alternative energies (biomass and Photovoltaic–PV–solar energy) and, consequently, reduce GHG emissions.
The Chocolate, Biscuits and Coffee Businesses will continue with their emission–neutralization programs – including measurement, activities for reduction, mitigation and compensation – for specific products and processes, with the idea of advancing in the environmental performance of the products.
As a strategy to reduce GHG emissions and gases that affect the ozone layer (current gases affect the ozone layer and have global–warming potential), the Ice Cream Business determined the progressive migration of the current R–134a ecological–equipment park for R290–Hydrocarbons ecological equipment. By 2015, we project the first mass acquisition of this type of equipment for more than 4.500 units, reducing the CO2e by approximately 86.000 kg per year. Additionally, the Ice Cream Business will be a pioneer in Colombia in compliance with the Kyoto Protocol in the use of hydrocarbons, thus hoping to contribute to reducing the problem of climate change.
Carbon sequestration in the Yariguíes Farm
The Yariguíes Research Farm located in the Magdalena Medio (in Colombia), belonging to the Chocolate Business, has established an agroforestry–production system of 59 hectares which combines planting cocoa trees with timber species, such as spanned (abarco), walnut, cedar and Gmelina arborea (Melina). This association was certified by ICONTEC in 2014 as a forestry–compensation program. The cumulative sequestration of carbon was estimated at 3.700 tons of CO2e for a period of three years, with an annual average of 900 tons CO2e, an amount that will be used to compensate the GHG emissions from different industrial processes.
Certification of Best Agricultural Practices in the Yariguíes Farm
The Yariguíes Experimental Farm is a space for research and technological transfer for farmers, technicians and professionals in the Colombian agricultural sector; it has several functions within the Business. One is the dissemination of Best Agricultural Practices (BAPs) in relation to the cultivation of cocoa to all the interested community. The BAPs are a set of principles, regulations and technical standards applicable to food production, processing and transport, aimed at protecting human health and the environment, and improving the living conditions of workers and their families. The implementation of the BAPs allows agricultural systems to obtain healthy, quality food, generating added value to products and, thus, access markets in the best way possible. The BPA certification awarded by ICONTEC to the Experimental Farm allows it to be a model of development and responsible production. This is the first certification awarded nationally for cocoa crops, which will permit implementing and disclosing a socially sustainable, environmental–cultural model, ensuring cocoa production of the highest quality.
Ice cream freezers that use refrigerants with less impact on climate change
Seeking the sustainability of its assets, the Ice Cream Business purchased more than 200 freezers with new developments in refrigeration systems, supported by fully environmentally friendly refrigerants (R–290–hydrocarbon–based refrigerant gas), thus improving the efficiency in energy consumption and offering an added value to our clients, while reducing the risk of emissions associated with leakage of refrigerant gases (Scope 1).