Zilor, a Brazilian multinational operating in the sugar-energy and biotechnology sectors, discloses to society its commitments, projects and environmental, social and governance (ESG) performance indicators in the 2022/2023 Crop through the Annual Sustainability Report. The document, released this September, reinforces the business’s commitment to communicating the Company’s progress and challenges to its stakeholders, based on reference methodologies.
The document contains financial and non-financial indicators that demonstrate how the company’s business strategy interacts with ESG assumptions, including data reported based on the standards of the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). Information about the business – operational and financial performance, strategy, investments and risk management – and details about Zilor’s dedication to the United Nations’ Sustainable Development Goals (SDGs) are also integrated into the report.
As in previous cycles, the Annual Sustainability Report starts from the most relevant ESG topics to define its scope and content. To achieve this, a materiality process led to the identification of eight themes – six corporate and one specific for each business division (Agroindustry and Biotechnology) – prioritized throughout the pages. Among the highlights, the results of the business are presented – such as the highest net revenue in the company’s history, with 3.4 billion BRL –, the consolidation of the Zilor + Sustainable 2030 ESG Program and the commitment to incorporate ESG goals into remuneration variable of leadership and all employees.
A LOOK TO THE FUTURE
In line with good market practices, the report is dedicated not only to talking about the performance of the crop year, but also to detailing actions aimed at the future, growth and innovation. This is the case of Zilor’s energy generation expansion projects, which had as a milestone the delivery of the São José unit, in 2023, and the progress in the actions of the Barra Grande unit. When completed, this cycle of more than 550 million BRL in investments will allow an increase of 319 MW in capacity, meeting 100% of the energy needs of Zilor’s plants and increasing exports of the resource by 60%.
The results and investments in Biorigin, a unit specialized in solutions in ingredients of animal origin for human food, pet food and production animal nutrition, with an export focus and a global footprint that includes units in Brazil and the United States, as well as of offices in Europe (Belgium), are also presented. The crop was characterized by the start of activities at the Application Center, in São Paulo (SP), and by internal reviews of processes and logistics, in order to increase the level of service to customers.
The perspective presented in the report is that of a company focused on business diversification, with sound fundamentals and a consistent plan to mitigate the risks inherent to the sector and to capture opportunities. “The indicators and highlights presented in this report make us proud of the resilience of each member of the Zilor team, in reflecting, acting and delivering results consistent with our history and our potential impact on the communities where we operate,” says Fabiano Zillo, CEO of Zilor. “Financial sustainability is combined with an increasingly tangible commitment to the environmental, social and governance (ESG) pillars. We continue to build a history dedicated to innovation and delivering results consistent with our potential and the expectations of our shareholders.”
ESG IMPACT ON DATA
Several indicators, projects and investments explored in data, infographics and text narrative address Zilor’s material ESG themes, with relevant milestones for the 2022/2023 Crop. An example is on the human capital front, with actions such as reviewing the structure of positions and remunerations, in addition to implementing the 360-degree leadership evaluation process. During the crop, more than 1 million BRL was invested in employee training and education. Other positive highlights were the 16 million BRL in investments in health, safety and environment (HSE) and the achievement of the lowest frequency rate for accidents that result in time off from work in Zilor’s history.
Partnerships with society unfold into actions aimed at suppliers and surrounding communities. Value chain management is one of Zilor’s competitive differentiators and, in the report, it gains emphasis on the Agricultural Partnership Program, which in the crop had 16 producers impacted by relationships that provide financial security and sharing of good management practices. 100% of these suppliers are evaluated on ESG aspects. Readers of the report will also be able to learn more about engagement and impact programs with surrounding communities, such as Zilor Is + Social. During the crop, there were 3.7 million BRL in own investments and incentivized resources, with 220 sponsorship actions and donations, 30 institutions served, and resource contributions that impacted more than 51 thousand people.
In environmental management, the report details, in addition to the efforts through certifications and systems to optimize processes and mitigate risks, the business opportunities explored in light of agendas such as climate change – the case of the commercialization of decarbonization credits (CBIOs), which yielded 44 million BRL in crop revenue for the company. The use of energy is another subject of emphasis, in line with the growth strategy, as well as the premises of the Solid Waste Management Plan, and efforts aimed at the circular economy through actions such as the Vinasse Application Plan and the management of agro-industrial by-products.
To access Zilor’s 2022/2023 report, click on the image:
Sustainability Report 2016/2017 and 2017/2018 harvest years