Page 1

Sustainability Report


For more information: www.PRONACA.com Comments: responsabilidadcorporativa@PRONACA.com

2

Agricultural Research and Development Center at La JoseďŹ na, Province of Guayas.


Table of Contents Introduction About this report

5

Message from the Board

6

Our Company

7

Philosophy

8

Organizational Structure and Corporate

9

Governance

Economic Balance Financial Management

Operational Center Certifications

37

Achievements and commitments

39

Biosafety

40

Animal welfare

40

Organizational Development Human rights enforcement oversight

41

PRONACA co-workers

42

Continuing education

43

Fringe benefits

45

“Golden Roosters”

47

Achievements and commitments

49

11

INAEXPO

15

Rural Area Fields

19

Achievements and commitments

23

Environmental Balance Environmental Management

25

Clean development mechanisms

25

Environmental management indicators

26

High-impact environmental initiatives

27

Recycling

27

Achievements and commitments

29

Occupational Health and Safety Aculture of risk prevention

50

Health promotion

52

Generating dialogue and relationships with stakeholder groups

53

Positive relationships with communities

55

Well-being and health with neighboring communities

56

San Luis Foundation

57

PRONACA committed to education

58

“It’s Never Too Late to Learn” Program 59 Food Bank

59

Volunteering

60

Achievements and commitments

61

Social Balance GRI Indicators

Product Responsibility PRONACA’s commitment

31

A company that listens

33

Verification Letter

62

Contact, complaint, and claims center

34

Indicators

65

Quality and Food Safety Control systems

35

Food safety control

36


4 4

Farmers in rice plantation, Guayas Province


Introduction ABOUT THIS REPORT This is the fifth Sustainability Report presented by Procesadora Nacional de Alimentos, PRONACA. It contains relevant information on the economic, social, and environmental impacts of our business during the year 2011. This report has been prepared in accordance with the recommendations and parameters of the Global Reporting Initiative (GRI) and Global Pact, fulfilling the principles required by the GRI, performing an A+ GRI CHECKED, and with a third-party verification performed by Deloitte & Touche.

In terms of coverage, this document contains complete information on the performance and results of 2011. This edition has relevant indicators about the business of PRONACA and INAEXPO in Ecuador. INAEXPO is PRONACA’s company in charge ofits export business, with PRONACA being its sole shareholder. This report is the product of a sustained collection and structuring of information, as well as of direct dialogue with stakeholder groups of the Company. The

financial

information

reported

is

based

on

International Financial Reporting Standards (IFRS) required by the Superintendency of Companies of Ecuador.

The financial statements for this report have been verified by the independent auditing firm of Deloitte & Touche for the reported period. According to the principles of completeness and materiality defined by the Global Reporting Initiative (GRI), this report does not report 20 performance indicators. The reason for this exclusion is that they are not applicable to our activity or to certain processes. The contents and information on this report may also be accessed on our website.

www.pronaca.com


Introduction MESSAGE FROM THE CHAIRMAN OF THE BOARD AND FROM THE CHIEF EXECUTIVE OFFICER Dear Friends We are pleased to deliver the fifth Sustainability Report from PRONACA. This document covers an integral vision of the activities we conduct in our organization. The report deals with the economic, environmental, and social aspects of our business. Each one of the chapters presents information related to our co-workers and other stakeholder groups with which PRONACA has on-going relationships. The most noteworthy fact in this report is PRONACA’s role in promoting development in agriculture and as a supplier of quality food for all members of Ecuadorian society. A very important aspect of PRONACA’s business model is its development of integrated farmers that work with us not only with corn and ricebut also with broiler chickens, artichoke, and heart-of palm. In essence, this integration system consists of helping the farmer obtain the necessary credit and ensuring a market for his products. In addition, we establish a cooperation triangle betweenthe credit, the farmer, and the delivery of his crop at agreed-upon prices, while some funds are retained in order to pay back his loans. This integration system produces a win-win situation for the farmer, for agriculture and for agroindustry, whereby all parties obtain a reliable market based on a reliable vendor. In this manner we can build lasting, long-term relationships where everyone wins.

For over 25 years PRONACA has been a company that exemplifies its commitment with the goals of food safety and food sovereignty. It is very important for Ecuador to know how to feed itself. There are farmers in the fields to whom we can teach new technologies through agricultural extension programs that should be carried out by both the public and the private sectors. There are fertile lands and there is a climate that allows many products to be harvested, such as corn and rice, among others. We should highlight the support we provide to corn farmers through the incorporation of new technologies, with quality seeds and technical processes so that, through our joint efforts we may all achieve the goal of turning Ecuador into a country that is self-supplying in corn by the year 2015. All of this while simultaneously taking care of nature for future generations and meeting all the environmental regulations adopted by the government. The work performed by our co-workers and with communities in the areas near our operations, also deserves a special mention. We are convinced that the only path towards mutual growth and success is one in which the Company, with its entire staff, together with its suppliers and clients, is the only way to ensure a future for all us. We trust that by reading these pages you will obtain a perspective of the work performed by a company that prides itself in being Ecuadorian and that strives to play a positive role in Ecuador’s present and future.

Sincerely,

6

Luis Bakker Jr.

Juan Ribadeneira E.

CHAIRMAN OF THE

CHIEF EXECUTIVE

BOARD

OFFICER


PRONACA Co-workers, Inverna Building, Quito.

OUR COMPANY In 1957, the INDIA Company was founded, a pioneering company in the Group, dedicated to importing agricultural products. It grew in the poultry industry with incubation, and commercial egg trade, and later through seed research and production. PRONACA was founded in 1979 as Procesadora Nacional de Aves, whichin 1999 became Procesadora Nacional de Alimento.

During the 90’s, it diversiďŹ ed its production in meats and other foods, and began exporting canned heart-of-palm. During the new century, PRONACA has taken its production and marketing model for heart-of-palm to Brazil, and its processed products to Colombia. Presently, PRONACA is a proudly Ecuadorian company that nourishes people well and generates development in the agricultural and livestock sector, with social and environmental responsibility at heart.


Introduction PRONACA’S PHILOSOPHY Purpose

Values

PRONACA exists to nourish people well and generate development in the agricultural and livestock sector.

Integrity, Solidarity, and Responsibility.

Principles Suppliers

Consumers

PRONACA believes in and practices respect for its suppliers, to whom it offers a fair profit in every negotiation within a framework of ethical behavior. It fosters compliance with the law along with socially responsible behavior.

PRONACA, as its main responsibility, provides innovative, healthy, and quality products that nourishes its consumers well, and which contribute to the well-being and satisfaction of their families.

Co-workers

Society

PRONACA leads its co-workers through example, which is to be competent, fair, and ethical. It has a commitment with solidarity and is respectful with the well-being of each and every one of them, and it does not tolerate dishonesty. It recognizes talent and offers fair remuneration. It fosters teamwork and delegation with responsibility in working conditions of cleanliness, order, and safety.

PRONACA, in agreement with its corporate social responsibility outlook, conducts itself as a good citizen, always seeking to form the best relationship with various stakeholders in an atmosphere of harmony and collaboration. It shares its experience and know-how in order to contribute to the development and quality of life within the area of influence of its operations. It encourages civic commitment and pays all of its taxes. It is respectful and practices solidarity with all persons and with care for environmental balance.

It offers equal employment opportunities, career advancement, and promotion to all co-workers who are qualified for it. It motivates and accepts suggestions and recommendations from its co-workers for the good of the Company.

Clients PRONACA works together with its clients in order to always offer quality products. It is innovative with its processes and products in order to lead in the markets in which it is present. It answers its clients’ requests in a quick and through manner.

8

Associates PRONACA acts responsibly with producers and entrepreneurs. It invests in research and development and creates innovative products. It shares its philosophy and creates business opportunities for its associates with whom it maintains a close, fair, and mutually beneficial relationship.


ORGANIZATIONAL STRUCTURE AND CORPORATE GOVERNANCE At PRONACA, the supreme governing authority is the

The operation and structure of these two government bodies

General Stockholders Board, which meets in Ordinary and

are depicted in the Incorporation Charter of the Company,

Extraordinary General Board Meetings comprised by legally

and fulfill all mandates of the control agency known as the

summoned stockholders. The General Stockholders Board

Company Superintendency of Ecuador. There are in addition,

meets at least once a year to address matters pertaining to

internal regulations that govern the operations of the Board.

the management of the Company. PRONACA has several executive committees that execute The Board is elected by the General Stockholders Board

and provide follow-up to the various business strategies within

and comprises the highest administrative authority, and

their competencies. This corresponds to an organizational

has three external Directors. Among its responsibilities is to

structure designed to adequately manage the risks and

make decisions concerning financial, economic, and policy

opportunities associated with the business.

approval issues that govern the organization.

PRONACA in Ecuador

ESMERALDAS

TULCÁN

ESMERALDAS

CARCHI IBARRA

IMBABURA PICHINCHA

NUEVA LOJA

SANTO DOMINGO DE LOS TSÁCHILAS

SUCUMBIOS

QUITO SANTO DOMINGO FCO. DE ORELLANA

MANABÍ COTOPAXI

ORELLANA

NAPO

PORTOVIEJO LATACUNGA

LOS RIOS

AMBATO

BOLIVAR BABAHOYO

TENA

TUNGURAHIUA

GUARANDA

PUYO

RIOBAMBA

PASTAZA

GUAYAS SANTA ELENA

CHIMBORAZO

GUAYAQUIL

SANTA ELENA

MACAS

MORONA SANTIAGO

CAÑAR AZOGUES CUENCA

AZUAY MACHALA

PRODUCTION ACTIVITITES

EL ORO ZAMORA CHINCHIPE LOJA

INTEGRATED

ZAMORA

LOJA

DISTRIBUTION NETWORK REGIONAL OFFICES EDUCATIONAL CENTER


10 10

Transparency is one of the main pillars at PRONACA.


Economic Balance

3,026

suppliers

196

suppliers

in the Inclusive Integrated Program.

nationwide.

94%

of all

suppliers are domestic.

SOLID AND TRANSPARENT FINANCIAL MANAGEMENT PRONACA maintains a strong commitment to local and national development. Clear and reliable balances are the calling card of PRONACA in Ecuador. The committed work of thousands of co-workers, along with the trust expressed by its stockholders, forms the basis for its sustainable development.

These economic figures correspond to the general financial statements of our company as of December 31, 2011, respectively.

Balance Sheet at December 31, 2011 (Expressed in thousands of US Dollars)

Current Assets

264,019

(+) Net Properties, plant, and equipment

179,768

(+) Other assets

105,057

= Total assets

548,844

Current liabilities

130,365

(+) Liabilities and long/term provisions

127,346

(+) stockholder equity

29,.133

= Total liability and equity

548,844

Comprehensive results for years ending (Expressed in thousands of US Dollars) December 31, 2011 Net Sales (-) Costs and expenses

728,863 681,072

= Profit before co-worker profit sharing and income tax

47,791

(-) Co-worker profit sharing and income tax

14,426

= Net Profit

33,365

* For the purpose of this Sustainability Report, we are presenting co-worker profit sharing in detail as well as individually.


Economic Balance

Taxes paid in 2011 (In thousands of US Dollars) Added Value Tax 窶天AT Expense

7.166

Custom Duties - Imports

1,834

Income tax expense

8.244

Tax on outward foreign exchange

2.945 29

Tax on rural land

917

Municipal tax Total

Employer contributions (In thousands of US Dollars)

4,139

Administrative employer contributions

1,360

Total

Agricultural Corn Integration and Extension Program, Province of Los Rテュos.

Year 2011

Production employer contributions Commercial employer contributions

12 12

21,135

1,761

7,260


PRONACA’s growth goes hand-in-hand with its suppliers’ development. Suppliers are an essential part of PRONACA’s production

During 2011, PRONACA consolidated a work process focused

chain. The provision of quality raw materials and inputs

on formalizing smaller suppliers. The Company achieved

represents a process that generates sustainable business

more secure and consistent business deals by eliminating

opportunities, which is concentrated at the local and national

only occasional deals. This initiative concentrated such

levels. The adequate mechanism of vendor selection,

efforts in Bucay (Coastal Regional Office) and in Santo

qualification, and registration, results in the development of

Domingo de los Tsáchilas. Practices considered comprise

those who provide services, inputs, and raw materials.

mainly labor, environmental, and health and safety norms.

Number of Suppliers per Region (in thousands of US Dollars)

Year

Amount of purchases per Region (in thousands of US Dollars)

2011

2010

Guayaquil - Bucay

832

844

Santo Domingo

756

778

1,272

1,285

166

182

3,026

3,089

Quito Others

Total

Year

2011

2010

118,000

85,000

Santo Domingo

96,000

98,000

Quito

119,000

93,000

Guayaquil - Bucay

Others

Total

9,000

6,000

342,000

282,000

Number of Suppliers per Origen

Purchase amount per Supplier per Origin

(in thousands of US Dollars)

(in thousands of US Dollars)

Year Abroad National Integrated

Total

2011

2010

284

208

2,830

2,872

196

3,310

217

3,297

Year

2011

2010

Abroad

172,000

136,000

National

233,000

191,000

Integrated

109,000

90,000

514,000

417,000

Total


14 14

Heart-of-palm plantation, INAEXPO, Santo Domingo de los Tsรกchilas.


Economic Balance

27

destination countries for our products.

1,429

containers ofheart-ofpalm and artichoke produced.

78

clients internationally.

INAEXPO An example of success for the agro-export sector of the country that typifies the commitment with Ecuador and with the world by facing the challenges of quality Ecuadorian exports. INAEXPO, Industria Agrícola Exportadora, was founded in

This achievement, supported by INAEXPO, has required

1992 with the mission of exporting quality heart-of-palm. A

investment,

decade later, it began the project for the export of artichoke.

knowledge of international markets. INAEXPO’s heart-of-

By early 2001, it expanded its production and marketing

palm is produced in the subtropical areas of the country,

model for heart-of-palm grown in Brazil. Presently, Ecuador is

and reaches 78 clients worldwide distributed in 27 countries

the largest exporter of cultivated heart-of-palm in the world.

spanning Asia, Africa, Europe, and the USA.

research,

agricultural

development,

Offices and Representatives

Destination countries for our products

Commercial / Production Operations

France, Spain, United States, Canada, Venezuela, Argentina, Chile, Mexico, and Israel.

Argentina, France, United States, Chile, Canada, Spain, Israel, Belgium, Uruguay, Ecuador, Italy, Lebanon, Colombia, Germany, England, Morocco, Australia, Mexico, Jordan, Singapore, Switzerland, Saudi Arabia, The Netherlands, Luxemburg, Paraguay, Venezuela, and Brazil.

Ecuador, Brazil, and Costa Rica.

and


Economic balance Main export products INAEXPO’s main export products are cultivated heart-of-palm

sized producers from whom, through a long-term agreement,

and artichoke, both in preserves, which are sought after by the

it purchases all of its production directly.

most demanding consumers in the world due to their delicacy and quality.

Farmers who are integrated are given, in addition, quality agricultural

The production process begins where INAEXPO has implemented an integration model with small and medium-

A model that ensures quality The business model is focused in processes that guarantee a high-quality product, ready to comply with international market parameters. In 2011, INAEXPO maintained its quality control systems based on the standards followed by IFS (International Food Standards), ISO 22000, and HACCP (Analysis and Control of Critical Points), and BASC (Business Alliance for Secure Commerce). The products and processes comply with the FDA (Food and Drug Administration), and with the Codex Alimentarius Commission.

16

inputs,

technological transfer.

technical

assistance,

training,

and


INAEXPO worker harvesting heart-of-palm, Santo Domingo de los Tsáchilas.

Heart-of-palm Indicators Participating farmers Hectares planted by integrated farmers Monthly income / farmer Technical Assistance (training hours per farmer) Employment generation (workdays approximately) Families involved Transport – annual investment (thousands of US$) Improvement in farmers’ formality Average productivity vs. Marketing Incorporation of Environmental GMP (Good Manufacturing Practices)

Artichoke 2011 202 7,226 USD 4,968 54 385,000 1,010 657 Ruc y RIse 6.5 vs. 4.5 Manejo de desechos

Investment in Ecuador (thousands of US$)

7,625

Large Farmers

23%

Medium-sized farmers

51%

Small farmers

26%

Sales (thousands of US$)

37,924

Indicators

2011

Participating farmers

150

Hectares planted by integrated farmers

811

Monthly income / farmer Technical assistance (training hours per farmer) Employment generation (workdays approx.) Families involved Average productivity Sales (thousands of US$)

USD 3,645 60 221,760 776 18.28 tn/Ha 11,159


Artichoke plantation, Highlands Area, Latacunga.

ACHIEVEMENTS IN 2011 Heart-of-palm and Artichoke

Gonzalo Moya Vice President of International Business

1,429 containers produced. 929 direct co-workers. 25,126 tons of heart-of-palm fiber were sold to 16 cattle ranchers in the area.

“INAEXPO continues to overcome obstacles”. In 2008, the world market underwent a series of

COMMITMENTS FOR 2012

impacts that caused a significant drop in certain products. Until 2011, these variations were overcome

In the artichoke business, INAEXPO will invest in a residual water treatment plant, which will allow a reduction in the environmental impact that the business has through the use of a cleaner and friendlier technology with the environment.

by INAEXPO, which has consolidated its adaptation process to the crises as of lately. In order to do so, the production processes for heart-of-palm and for artichoke have been consolidated in order to make them more efficient through improvement of our

Maintain certifications and markets.

production plants.

Implement improvements in agricultural, industrial, and commercial areas in order to achieve a sustained profit.

INAEXPO is the only company in the world, in the heartof-palm business, which has a plant with the correct

In the artichoke business, INAEXPO will institute new proposals in order to strengthen the strategy of raw material provisioning, and implement improvements in the productive process.

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levels of water reprocessing, residual water treatment, and treatment of waste and debris.


Economic balance THE FIELDS ARE THE BEGINNING OF THE VALUE CHAIN Agricultural and livestock integration and extension programs generate development in the productive chain of our Company. Integrated poultry farming The poultry farming integration program is an initiative by

implement poultry equipment and a biosafety system.

PRONACA to establish a direct relationship with individual

The zoo-technical yield is assessed through the European

poultry farmers. The Company provides quality raw materials

Efficiency Factor, which measures the percentages of viability,

for the raising of poultry (bb chicken, bird feed, vaccines,

daily weight gain, and feed conversion.

technical assistance, and training) while those integrated

PRONACA provides technical assistance to farmers. Agricultural Corn Integration and Extension Program, Provinces of Guayas, Los Ríos, and Manabí.


Integrated poultry farms Indicator / year

2011

2010

91

96

Families involved

546

576

Employment generation

455

480

Technical assistance (training hours per producer)

220

212

297/300 vs. 260/300

278/300 vs. 254/300

Participating producers

Average productivity vs. Marketing

Incorporation of Environmental GMP

Provision of vaccines, loans, and training in operational norms

Investment in Ecuador (thousands of US$)

24,549

Provision of vaccines, loans, and training in operational norms

23,054

*The data of the economic exercise of integrated poultry farming belong to each one of their financial exercises.

2011 was a very good year for poultry farming integration. The production results attained have surpassed those of previous years, and the profits obtained have fulfilled the expectations of over 80% of those integrated ones. Poultry farmers have been made aware of the importance of improving biosafety practices, conditions of infrastructure, and equipping of their sheds. Training workshops have been organized in order to share corporate responsibility practices with them.

20 20

Poultry farming center, Tropicales Farm, Santo Domingo de los Tsáchilas


Integrated corn farming The integrated corn program (large, medium, and small) is focused on training corn farmers in order to achieve a more efficient and qualityoriented production following the standards that the company maintains. PRONACA has liaised with government agencies in order to generate long-term development in the fields, which has motivated trust and new opportunities for growth, especially for farmers with less than 10 hectares. Among the most noteworthy results, there are the leveraging of small farmers in knowledge and techniques on corn farming with adequate technologies, and in corn, bean, sorghum, and sunflower cultivation in order to determine the feasibility of planting during the summer through irrigation systems.

Integrated PPC (More than 10 hectares) Indicator / year

2011

2010

Total investment amount (thousands of US$)

5,256

2,567

300

293

Total number of participating farmers Products associated to the project

Corn

Area cultivated with farmers (ha) Loan recovery portfolio (thousands of US$) Average productivity (Tm/Ha) Amount of corn delivered to PRONACA (MT) Technical visits

Corn 17,007

Results achieved 18,086

2,511

4,987

4.5

5

62,498

75,323

986

1,380

Integrated PII (Less than 10 hectares) Indicator / year

2011

2010

Total investment amount (thousands of US$)

633

218

Total number of participating farmers

159

58

Total number of benefitted farmers

533

469

Products associated to the project

Corn

Corn

Cooperating institutions

IDB, SNV, Municipality of El Empalme

Results achieved Area cultivated with farmers (ha) Loan portfolio recovery (thousands of US$) Average productivity (Tm/Ha) Amount of corn delivered to PRONACA (MT) Farmers trained

PRONACA ensures the quality of one of its main raw materials: corn.

1,386

415

558

202

5.8

4.5

3,979

1,243

533

469


22 22

Farmers touring the Agricultural Research and Developmet Center at La Josefina, during the “Golden Corn on the Cob 2011” Event.


Economic balance

ACHIEVEMENTS 2011 Integration Programs We achieved record results in certain lots of poultry

procedures through GMP (Good Manufacturing Practices)

farming when we reached feed conversions of 1.67*.

and support of Integrated technicians.

Integrated farmers have strengthened their businesses

We generated a sense of belonging in the integrated farmer

and project growth for 2012 based on state-of-the-art

that yielded further trust in dealings with the company. This

technology for poultry production.

was achieved through assistance, training, motivation, and recognition.

We generated a change in the production scheme of the integrated farmer that allows ordering of their

* Feed conversion is the relationships of weight versus feed consumed in kilos.

COMMITMENTS FOR 2012 Support self-storage of hard yellow

Jorge Zambrano Corn farmer – Canton of Mocache

corn through the association of small farmers so that they may have their own drying and storage infrastructure. Foster summer corn growing through an irrigation system in order to increase their annual production and therefore increase revenues for the

First place in Mazorca de Oro (Golden Corn on the Cob) for 2011 “The secret to becoming Number One is to work as instructed by INDIAPRONACA technicians and follow their recommendations step by step. They visit us twice a month, but if we see unconformities in certain areas of production, we call the technicians so that they may guide us.

farmers. Develop the implementation of family gardens (corn receiving and drying facilities).

Another important aspect is that we set up a simple goal: to have good production. I have always grown corn, but about 6 years ago, I started to put more heart in growing corn. I was about 28 years-old when this happened. I put more dedication into this process by trying not to depend too mucho on the workers. That’s when I realized the importance of my spending more time at the plant, of understanding how it works, and of constantly verifying whether the products applied are producing good yields”.


24 24

PRONACA co-workers in Santo Domingo de los Tsรกchilas.


Environmental Balance

11

4,615

11,455

implemented nationwide.

202,617

74,193

70

environmental permits observing current legislation.

tons of CO2 not released into the atmosphere as of 2011.

trees planted as of 2011.

treatment

plants for residual water

man-hours of training in environmental culture.

kilos of recycled paper.

ENVIRONMENTAL MANAGEMENT IS A STRATEGIC COMMITMENT FOR PRONACA Sustainability of our operations depends on good practices and responsible management of resources. For PRONACA, 2011 was a year of consolidation in the

Between the years 2010 and 2011, PRONACA invested

application of environmental policies that are cross-cutting

1,643 (thousands of US$) in this process. It carries an

to the organization. Responsible management of natural

environmental policy based on compliance with current

resources is a daily practice that has become an essential

legislation. Our company has made an effort to follow

part of PRONACA’s work culture at its operational centers.

national and international standards concerning the environment and in order to institute procedures to develop new alternatives of environmental care.

Clean Development Mechanisms (CDM). As signatories of the Global Pact, and in agreement with

We are continuing with the application of the indicator model

Principles 7, 8, and 9, which contemplate development of

that reports the consumption of energy, fuels, and packaging,

a preventive focus in light of environmental challenges,

the generation of non-toxic waste, and residual waters.

fostering

and

These comprise the five indicators that are showcased every

encouraging development and diffusion of respectful

year in order to verify advancement and compliance with the

technologies

environmental policy.

greater

environmental

mindful

of

the

responsibility,

environment,

PRONACA

continued the development of the gas emissions reduction project that cause the greenhouse effect.

The procurement of 70 environmental permits has comprised a significant advance in our administration. These permits

Technological changes were performed at 6 operational

are obtained at the Ministry of the Environment and at

centers, which are framed around a comprehensive

Environmental Secretariats at local municipalities. This

environmental management that is based on cleaner

information is included in environmental studies performed

production concepts. As of 2011, PRONACA stopped

and presented periodically, in agreement with the stipulations

releasing 202,617 tons of CO2 into the atmosphere. This is a

of the Law on Environmental Management and the Unified

process subject to yearly verifications and approvals by the

Text of Secondary Environmental Legislation (Tulas—in

United Nations Organization (UNO).

Spanish).


Environmental Balance

Figures of an environmentally-friendly administration. Energy consumption Business Poultry Pork Commercial eggs Livestock Cold meats (cold cuts) Preserves INAEXPO - Heart-of-palm

Kw-h / year 2011

Fuel

Kw-h / ton pt* 2011

gal. fuel / año 2011

Business

27,471,723

270

Poultry

5,231,100

205

Pork

gal. / ton pt. 2011

27,471,723

270

5,231,100

205

435,062

38

435,062

38

Commercial eggs

25,770,856

45

Livestock

25,770,856

45

7,133,321

550

Cold cuts

7,133,321

550

637,517

116

Preserves

637,517

116

1,499,109

148

INAEXPO - Heart-of-palm

1,499,109

148

* Tons per finished product.

Non-toxic waste Business

Kg / year 2011

Toxic waste** Kg / ton pt 2011

Zone

BioBiopeligrosos hazardous chemical (kg) containers (kg)

Poultry

15,7121

1.5

Pork

55,870

2.2

Coast

4,282

2,424

5,486

Commercial eggs

62,848

5.5

Santo Domingo

4,369

12,628

2,138

Livestock

6,00,080

1.0

Highlands

Cold cuts

153,481

11.8

Preserves

16,947

3.1

INAEXPO - Heart-of-palm

92,559

9.2

Total

Business

Poultry Pork

m3 of industrial residual water 2011 1,072,417 111,168

726

3,383

15,778

11,007

Packaging m3 / ton pt 2011

Business

Number of bags 2011

10.6

Poultry

4.3

Pork * Tons per finished product.

8,765

0.8

Livestock

115,165

0.2

Cold cuts

125,362

9.7

Preserves

78,720

14.3

INAEXPO - Heart-of-palm

161,771

16.0

Commercial eggs

1,545.5

1,019.7

** Final disposition: Environmental manager certified by environmental authority.

Residual water

26

Spent oil (gal)

Units bags/ton pt. 2011

43,296,713

426

7,195,642

281


Large-impact environmental initiatives. Continuously, the company invests in the continuous

Concerning pig breeding, since 2000 to-date, a system has

implementation and improvement of environmental control

been developed and implemented for rearing pigs with

and prevention systems in order to optimize resources,

decreased impact on the environment. This system uses

minimize impacts on water and air in their areas of

rice-husk beds, eliminates the use of water in the cleanup

inuence, and improve the management of solid waste.

of production areas, minimizes the presence of odors, and

The resulting waste stemming from the various production

allows obtaining organic fertilizers. There are bio-digesters

activities that PRONACA embarks on is managed and

at the breeding and fattening farms for the treatment of

disposed of by following procedures the observe current

residual water.

legislation. Bio-digesters at pig farms use a technology that allow for the Inorganic waste that is not reused internally is delivered

comprehensive management of organic waste. These are

to environmental managers, certiďŹ ed by local authorities.

closed systems that facilitate the decomposition of organic matter under anaerobic conditions, i.e., the absence of

Organic waste stemming from industrial plants represents

oxygen. As a result of this process, it is possible to obtain bio-

the raw material for new production processes. Some

fertilizers, organic fertilizers, and bio-gas. Processing based

is used for the production of fertilizers commercialized

on bio-digesters represents one of the most advanced

nationally, and is used at plantations and gardens within

techniques employed in Ecuador, and in this aspect,

the company’s facilities.

PRONACA sets the highest standards for the industry and for this sector of the economy.

3R Campaign, paper reduction, reuse, and recycling.

Paper recycling, reuse and reforestation. PRONACA continued with the 3R Program for paper, water,

This initiative forms part of the corporate volunteerism effort

and energy reduction, reuse, and recycling. The same is done

that seeks to motivate environmental awareness not only as

with reforestation, which links co-workers and their families.

co-workers but also as citizens.


28 28

Laboratory, residual water treatment plant, Valle Hermoso, Santo Domingo de los Tsรกchilas.


Environmental Balance

SUCCESS CASE Residual water treatment plants. One of the most relevant aspects of PRONACA’s operations

management

has been the implementation of 11 modern residual water

microbiological techniques to purify the residual water and

in

this

industry.

These

plants

employ

treatment plants nationwide. As of 2011, PRONACA has

allow for discharges that return back to nature to fulfill the

invested close to $10.2 billion dollars, which comprises an

parameters established by current environmental legislation.

example nationally concerning adequate environmental

ACHIEVEMENTS IN 2011 Environmental Care During the

2011,

CDM

PRONACA

project

continued

(Clean

Julio Aguilar

with

Director of Operations

Development

Mechanism). We consolidated the culture of environmental

“PRONACA is permanently committed with the environment”.

work in the organization, and we set challenges for management in excellence at national production centers.

The practice of responsible production policies forms an essential part of PRONACA’s organizational culture. This is

As of 2011, we have planted 74,000 trees

why the Company has a management model that implies a

nationwide.

renewed commitment with its stakeholders. This work, which has been performed in a gradual, progressive, and sustained manner in time, highlights important projects developed during 2011.

COMMITMENTS FOR 2012

One of them is the incorporation of a new technology to improve the bio-digester system in the production of pork. This makes it possible to use gas as a source of fuel in order to

During 2012, we will work on the carbon and hydric

generate sustainable electrical energy.

footprint. The physical and human investment to implement a To register a Clean Development Mechanism at the

composting system in our plants represents another

United Nations Organization (UNO).

contribution to the environment since through this mechanism we can use our own waste and turn it into organic fertilizer containing agronomic value.


30 30

PRONACA offers Ecuadorian families high-quality innovative products.


Social Balance

105%

growth of Mr. Chancho from fractioned sales.

68,232

sales points

offer products for the base of the pyramid.

11.4% new products sales growth.

35%

POP growth

for Mr. Cook en through Socio Solidario.

PRODUCT RESPONSIBILITY PRONACA’s commitment is geared toward maximizing quality, healthy, innovative, and fairly-priced products. PRONACA anchored its presence in the market during 2011 with

PRONACA broadcast Te Queremos Mejor Alimentado TV (We

the creation of innovative products with attractively presented

Want You Better Nourished) (TQMA.T V). During this second

packaging.

season, PRONACA delivered 40 new menus costing between US$ 0.60 and US$ 1.00 per serving. The quick preparation

PLUMROSE strengthened its Daily Line, which responds to the

channel presented a growth of 8%, which responds to

needs and likes of consumers. It grew to 68,232 points of sale

PRONACA’s commitment with its customers, by offering quality,

with its fractioned presentations, accessible prices, and an

reliable products, which are in addition profitable for the

efficient distribution system. Its sales grew by 54% in relation

individual businesses.

to 2011. In the pet business, during 2011, Ecuadorian consumers Since June 2011, Ecuadorian consumers can enjoy the new

awarded our efforts in developing nutritional and quality

fractioned presentations in Mr. Pollo cold cuts with sausages

products for dogs, with an increase of 9% in comparison to

and bologna, nutritional and economic products with the

2010 in PROCAN sales. Furthermore, the company set the

guarantee of PRONACA. Its excellent acceptance was reflected

bases for the PRONACA Pet Care and Nutrition Research and

in brand sales at the 46,490 points of sales where it is present.

Development Center. With an investment surpassing 1 million US dollars, this complex was created to foster the study and

This year PRONACA continued working together with the

creation of new healthy and quality pet food.

Programa Socio Solidario (Partner in Solidarity Program), through which it contributes with products that fulfill high quality

In order to comply with the standards of launching new

and nutritional value standards to the Ecuadorians’ basic family

products, PRONACA conducts blind tests in order to determine

food basket. Its sales grew 35% in comparison to 2010, and its

which products will be launched to the market with less than

products were present in over 36,900 points of sale nationwide.

70% customer acceptance.

The portfolio for Mr. Chancho fractioned products consolidated

All products reaching the final consumer comply with labeling

its presence at the dinner table of Ecuadorians. Its sales

and sanitary legislation, and its labels contain information on

registered a 105% increase in comparison to 2010, as a show of

the nutritional value, date of manufacture and expiration, list of

trust and preference by Ecuadorian families. Similarly, ready-to-

ingredients, sales price, commercial brand, and further data

bake Mr. Pavo turkey breast was launched this year intended for

demanded by current legislation. During 2011, PRONACA did not

modern housewives who wish to maintain family tradition and

report cases of labeling incompliances.

save time in food preparation. PRONACA ethically respects consumer rights, and its advertising In order to diversify the daily menu of Ecuadorian families along with economic, nutritional, and easy to prepare menus,

is neither deceitful nor does it employ images of children.


Social balance

ACHIEVEMENTS IN 2011 Practical and Nutritional Solutions With the presentation of the new TQMA.TV (We Want You

these products and in order to reach the base of the pyramid

Better Nourished) recipes, PRONACA broadcast over

with the Mr. Cook brand.

19,519,000 spots on TV, radio, press, and the Internet. market share in the cat food segment. PRONACA opened the doors to its new value/added product plant in order to satisfy the growing demand for

COMMITMENTS FOR 2012

Juan Maya

For 2012, the presence of the quick preparation

channel

will

Marketing Director

continue

consolidating itself with the development of a portfolio in keeping with the needs of this segment. House pets will now have new pet food: COMPA with the quality of PRONACA. The Socio Solidario line will have a new

“A goal that is achieved step-by-step”. PRONACA creates innovative products that are easily commercialized in order to promote its clients’ businesses. In this regard, the Company has designed a distribution channel that directly involves small business owners, such as convenience stores, which are given a wide portfolio of easily-commercialized products that boost their growth.

member in its family when fish products join in. Its great taste and affordable prices place them among the most preferred foods by consumers.

Sofía Paredes PRONACA will continue contributing to the diet of Ecuadorian families with its

Owner of BigMarket Quito

portfolio of functional food with products such as Indaves Eggs with Omega 3.

“My customers protest when there is no Daily Line” My customers have always sought PRONACA products for their quality, variety, and flavor. Sausages and bologna from the PLUMROSE Daily Line are the preferred cold cuts of those who buy at my store. Whenever they are no longer in my fridge, my customers tell me: “Neighbor, you are out of Daily Line”.

32


A company that listens to the voices of customers and consumers. Whoever wishes to make a suggestion or to present a complaint may do so at 1800-PRONACA, 1800-PLUMROSE, 1800-SUTIENDA, our webpages, and through direct contact at fairs and events.

Publication

*TQMA Magazine EDICIÓN ÑA NAVIDE

40 FASCÍCULO 2011 DICIEMBRE

AR EB EBR ILIA LE L M alo CEL CE ENmeFA jor reg el

s cho ra lomo Chan Comp ados Mr.IPAD2 un marin a por s más Particip premio y varios 25 Pág.

¡Es hora ! de jugardivierte e

ook e en FacebPavo! ¡Únet con Mr. hones y gana

El juego a la familia integra 24 Pág.

smartp Ipads, cards y gift 2 Pág.

a.tv .tqm www

“Alimentarte” (Nourishing You) Online

Su Tienda

Content

Target Public

Quarterly magazine offering information on health, nutrition, family, ways to protect the planet, and recipes. The purpose is to generate fidelity, facilitate knowledge on the use of the products, and support the launch of new brands or presentations.

This virtual bulletin contains notes on nutrition, health, family, and current issues. Its purpose is to foster consumption of PRONACA products and to consolidate an interactive communications channel that strengthens the relationships and loyalty with the consumer.

This is a magazine that publishes information that facilitates the management and administration of these businesses in a simple and direct manner. It is designed to reinforce relationships with this segment, communicate releases, promotions, and foster training.

(Your Store)

Print-Run 2011

Print-Run 2010

Consumers

690,000 copies, 5 editions

760,000 copies, 5 editions

Consumers

326,056 deliveries, 12 digital editions

461,787 deliveries, 12 digital editions

Clients (Store owner)

600,000 copies, 12 editions

600,000 copies, 12 editions

Proagro LA A AGRÍCO REVIST NO.7. CIÓN

RAL.

CIÓN

BIMEST

DIC. 2011-

ENE.

2012

A. GRATUIT

CIRCULA

PUBLICA

a a los A premi íz PRONACctores de ma produ ia de Una historrollo del desar ca de Oro: Mazor o con el oriano ro ecuat compromis maice sector 4 Página

mejores

zonales ivos y o Los inclus tienen mérit también9 Página

ución ral / Distrib Bimest

bre ta / Diciem Gratui

Enero

2011

- 2012

/ Edición

#6

Procampo (Pro-field)

Revista

ía: Ganader a: Avicultur

nte nutrie la El agua:al para princip ia de peso. ananc

ura: Porcicult

del tación Alimen¿por qué eacerdo, r los balanc escogePágina 6 dos?.

t1 130"(30

This is a trade technical magazine, which addresses agricultural health and nutrition, seeds and the options of technical support that farmers can count on. Its purpose is to disseminate information, product portfolios, and releases.

Clients: (farmers)

4,000 copies, 1 edition

36,000 copies, 6 editions

Magazine of trade technical content that addresses issues of animal nutrition, health, and genetics. Its purpose is to improve productivity through technical, commercial, portfolio, and new product launches.

Clients (livestock ranchers)

0

36,000 copies, 6 editions

ales el Los princip os para cuidad o seco. ganad 8 Página

*We Want You Better Nourished.


Social balance Contact center

Complaints and claims

During 2011, PRONACA adequately handled complaints and

PRONACA has a quick and efďŹ cient process to provide

claims from clients and consumers, thus demonstrating its

answers in the shortest time possible, to concerns,

commitment of guaranteeing healthy and quality products.

complaints, and claims from our clients and consumers. Clients and consumers who wish to make a suggestion or a complaint can do so by calling 1-800 PRONACA or by visiting www.pronaca.com.

Means of Contact Contact Center PRONACA.com webpage procan.com.ec webpage plumrose.com.ec webpage Contact number at fairs and events

Total

34 34

Contacts 2011

Contacts 2010

19,338 445,185 8,307 7,567

36,721 470,060 28,610 3,821

1,043,329

1,000,460

1,523,726

1,539,672

PRONACA listens to its clients and consumers.

Category

Complaints 2011

%

Complaints 2010

%

Marketing (1) Quality (2) Service (3)

18 528 210

2% 70% 28%

2 542 167

0% 76% 23%

Total

756

100%

711

100%

(1) Advertising, damaged labels, nutritional information, promotions. (2) Damaged product, expired product, damaged packaging, misrouted. (3) Service, delivery, dispatch.


84

certifications support productive processes at PRONACA.

850,815

analyses guarantee quality and food safety of our products.

QUALITY AND SECURITY Taking quality food to Ecuadorian homes is a commitment always present throughout our production chain. PRONACA has developed a standard process in order to ensure

with national and international parameters in the food industry,

that all of its products, besides being designed in agreement

PRONACA maintains a system of technical cards for raw materials,

with the likes and preferences of the consumer, are imbued with

packaging materials, and finished products. All operational

quality and food safety. This process is cross-cutting to the entire

centers have internal laboratories that perform quality and food

production and supply chain. In order to guarantee compliance

safety analyses.

Prioritization of control systems International industry standards demand this type of norms at production facilities. An adequate system of good practices is the first tool for biosafety and comprises a management model that prioritizes process standardization, decrease of production costs, compliance of productive parameters, food safety culture, personnel training, preventive and corrective equipment

Total # of analyses performed during 2011 to guarantee compliance in quality and harmlessness in all PRONACA brands.

Number of total analyses

maintenance, process variable control, continuous improvement, and environmentally-friendly production. This system allows obtaining legal permits.

Sector Poultry incubators Poultry Reproduction Farms Poultry Fattening Farms Turkey Farms Pig Farms Incubators Processing Plants Distribution Centers

# of Certifications 3 11 19 6 16 3 25 1

Animal nutrition (3 plants) Poultry (3 plants) Pork Added Value - Pifo Operational Center - Guayaquil Rice Preserves Egg classification Heart-of-palm Artichoke PRONACA - Colombia Mardex

Total

463,670 12,219 4,171 60,241 42,683 15,360 137,983 582 76,297 13,922 17,387 6,300 850,815


Social balance Food safety control The food safety control process is defined in technical

Operational

scientific follow-up studies, which are process-strict and

implemented an auditing system. During 2011, scores obtained

delineated by HACCP plans (Hazard Analysis for Critical

with the GMP norms at the Coast and South of Ecuador, were

Control Points, which is a system that identifies, evaluates,

highlighted.

and controls hazards that are significant for food safety), which are shown per sector below:

centers

continue

being

certified

and

have

DC Guayaquil: 93% compliance DC Cuenca: 94% de compliance DC Montecristi: 92% compliance

As in proprietary PRONACA Operational Centers, raw materials, packaging materials, ingredients and input suppliers, are required

INAEXPO heart-of-palm:

to have certifications obtained in order to guarantee food safety

Heart-of-palm, whole or in preserves (canned or in glass jars).

of products. Concerning seafood products, these suppliers have certifications from:

Heart-of-palm sub-products in preserves (canned and in glass jars).

Poultry: Poultry Plant at Yaruquí: (1) Chicken slaughtering and cuts. (2) Turkey slaughtering and cuts, broilers, and roasters. Poultry Plant at Valle Hermoso: (1) Chicken slaughtering and cuts.

FACUNDO: HACCP

Pigs: Pig slaughtering and cuts.

Meat-product added value: Fine pastes. Full-muscle products cooked in slow-cookers. Full-muscle products cooked in ovens. Raw frozen. Cooked frozen.

Artichoke: Production of artichoke and mixed products – artichokes and heart-of-palm in jars and cans in heavy salt, normal and marinated.

plants

(Good

Manufacturing

Practices)

manufacture products in an environment with high hygiene and comply with International Norms such as those of the CODEX ALIMENTARIOUS, a world-renowned food code.

36

In the case of external suppliers of preserve products, these have certifications in:

Poultry plant at Bucay: (1) Chicken slaughtering and cuts.

GMP-certified

OMARSA: BRC e ISO2000:2005/ACC/EUROLEAF/GLOBAL GAP PRODUMAR: Best Aquaculture Practices/HACCP/Global Gap EXPALSA: HACCP/Global Standard for Food Safety/BRC/ Global GAP SANTA PRISCILA: HACCP/BRC/Organic/Aquaculture Stewardship Council


Certifications at operational centers to-date. Poultry Certifying Agency

Op. Center

Type of Certification

Certification Criteria

Validity of Certificate

Plant at Yaruquí

HACCP (Hazard Analysis Critical Control Point) ISO 22000:2005 Regulation GMP 3253 - Ecuador

Codex Alimentarius ISO 22000:2005 Regulation GMP 3253 - Ecuador

SGS SGS MSP

2012 2014 2014

Plant at Sto. Domingo

HACCP (Hazard Analysis Critical Control Point) ISO 22000:2005 Regulation GMP 3253 - Ecuador

Codex Alimentarius ISO 22000:2005 Regulation GMP 3253 - Ecuador

SGS SGS MSP

2012 2014 2014

Plant at Bucay

HACCP (Hazard Analysis Critical Control Point) ISO 22000:2005 Regulation GMP 3253 - Ecuador

Codex Alimentarius ISO 22000:2005 Regulation GMP 3253 - Ecuador

SGS SGS MSP

2012 2014 2014

Op. Center

Type of certificate

Certification Criteria

Certifying Agency

Validity of Certificate

Pork Plant (Frimaca)

ISO 22000:2005 Regulation GMP 3253 - Ecuador

ISO 22000:2005 Regulation GMP 3253 - Ecuador

SGS MSP

2014 2014

Pork

Cold meats and Added Value Certifying Agency

Op. Center

Type of certificate

Certification Criteria

Cold meats Pifo (Carnasa)

Regulation GMP 3253 - Ecuador ISO 22000:2005

Regulation GMP 3253 - Ecuador ISO 22000:2005

MSP SGS

2014 2014

PRONACA Guayaquil (Ecuadasa)

GMP (Good Manufacturing Practices)

Codex Alimentarius

SGS

2013

Validity of Certificate


Social balance Eggs Op. Center

Type of Certificate

Certification Criteria

Carcelén Classifier

GMP (Good Manufacturing Practices)

Codex Alimentarius

Certifying agency

Validity of certificate

SGS

2014

International Op. Center

Certifying agency

Type of Certificate

Certification Criteria

Heart-of-palm

HACCP (Hazard Analysis Critical Control Point) ISO 22000:2005 IFS

Codex Alimentarius ISO 22000:2005 IFS

ECOCERT SGS ECOCERT

2013 2015 2013

Artichoke

HACCP (Hazard Analysis Critical Control Point) IFS

Codex Alimentarius IFS

ECOCERT ECOCERT

2013 2013

Certifying agency

Validity of certificate

Validity of certificate

Livestock Business Op. Center

Type of Certificate

Certification Criteria

Puembo

GMP (Good manufacturing practices)

Codex Alimentarius

ICONTEC

2013

Quevedo

GMP (Good manufacturing practices)

Codex Alimentarius

ICONTEC

2013

Durán

GMP (Good manufacturing practices)

Codex Alimentarius

ICONTEC

2013

Distribution Centers - Logistics

38

Certifying agency

Op. Center

Type of Certificate

Certification Criteria

Puembo

GMP (Good manufacturing practices)

Codex Alimentarius

ICONTEC

2013

Quevedo

GMP (Good manufacturing practices)

Codex Alimentarius

ICONTEC

2013

Durán

GMP (Good manufacturing practices)

Codex Alimentarius

ICONTEC

2013

Validity of certificate


SUCCESS CASE PRONACA began the certification of Good Manufacturing

PRONACA led this process and obtained 6 concurrent

Practices based on the GMP Regulation for Ecuador N° 253

certifications, making it the first company in Ecuador to fulfill

published in Official Registry 696, with the Ministry of Public

this legal requisite.

Health, on February 2008. These certifications help us to better handle the post-control Joint timely work performed together with the National

criteria for registering products exercised by the Health

Association of Food and Beverage Manufacturers made 2011 the

Authority, having Certificates recognized by regulating

year in which the poultry, pig, value-added – Pifo, and heart-

agencies from other countries, and taking national regulation

of-palm plants were audited and achieved the certification.

and making it comparable with that of other countries.

ACHIEVEMENTS IN 2011 Quality and Food Safety The processing plants for heart-of-palm and artichoke

Poultry processing plants initially HACCP certified showed

obtained the highest level of certification for the IFS

improvement due to the ISO 22000:2005 certification.

Norm (International Food Standard), required for international clients.

COMMITMENTS FOR 2012 Work together on the ANFAB with the

Ricardo Vargas

MCPEC and the MSP toward a change in

Department Head9, Quality Systems

norms to secure a change in legislation to obtain the Sanitary Registry through GMP. Define a measurement index as a parameter in quality assurance. Maintain

the

certification

and

audit

“PRONACA listens to the voices of its clients”. The voices of PRONACA clients, in the form of complaints, mark an opportunity to ascertain their needs and provide follow-up solutions for problems that arise in time.

scheme at operational centers. During 2011, we handled over 400 complaints, which were subjected to research and follow-up, which in turn allowed advising and training our co-workers in order to improve the quality of service.


Pig Farming Center, Campo Lindo, Santo Domingo de los TsĂĄchilas.

Biosafety PRONACA applies a strict Animal Biosafety and Well-

This procedure, cross-cutting to all operational centers,

being System in every process in the rearing of pigs and

implies restricting visits, use of appropriate working clothes

chickens with the purpose of ensuring the health and well-

and equipment, mandatory showers prior to any entry,

being of the animals, which forms the basis for healthy food

washing of hands, constant health monitoring of all co-

production. Implementation of these measures guarantees

workers, among various measures as to avoid any type of

that animals that are reared in farms, remain healthy, which

contamination risk.

ensures the health of consumers.

Animal Well-being Within the standard that PRONACA implements, animal well-

and of excellent quality. During 2011, PRONACA maintained

being is a key factor. Strict care during the rearing stage,

its animal well-being standard in the chicken and pig farms.

transport and processing of chickens and pigs, achieves a

40

lowering of animal stress levels to a minimum. The company

PRONACA has a research center for the pet food business

controls rest time prior to processing. We comply with

associated to the Pro-Can and Pro-Cat brands. The AVANT

standards that ensure care and treatment in production

Center allows performing research and development so that

sheds, loading and unloading ramps, population density,

pet food may be high quality food. This center fulďŹ lls and

location, cleaning time, amount of water and food, among

observes good animal treatment parameters for dogs and

other factors that determine that the animal meat is healthy

cats.


Social Balance

7,734

employment sources

nationwide.

782

(thousands of US$) invested in human development.

275

co-workers with disabilities

hired as of 2011.

ORGANIZATIONAL DEVELOPMENT Oversight in Human Rights compliance and the occupational health and safety of our co-workers, as well as outreach to communities where we are present, are essential factors of our sustainability management.

The performance of PRONACA as a signatory company of

During 2011, our company was consolidated as one of the

the Global Pact has as its core principle respect for Human

companies that generated 7,734 direct jobs. Distribution of

Rights, in reference to Principles 1 and 2. Its performance is

these jobs was done as follows: 32% in the Coastal region;

focused on people above all, and it is because of this that

35% in the Highlands; and 34% in the Province of Santo

it develops policies that foster favorable conditions and

Domingo de los Tsรกchilas. Business performance has

promote professional growth in its people.

centered on compliance of current legislation.

PRONACA fosters teamwork in all of its co-workers.


Social Balance

PRONACA co-workers by type of job, contact, and region* Region

Coast

Type Fixed Fees Occasional Internship

Total Coast

Highlands

Fixed Fees Occasional Internship

Total Highlands

Nationwide

Fixed Fees Occasional Internship

Total general

ADM

EXEC

731 9 29 1 770 723 17 26 5 771 1,454 26 55 6

2 1 0 0 3 34 7 0 0 41 36 8 0 0

1,541

44

MIX

OPER

Total

559 0 56 0 615 355 0 69 0 425 914 0 125 0

3,519 0 110 0 3,629 1,433 0 48 0 1,481 4,952 0 158 0

4,811 10 195 1 5,017 2,545 24 143 5 2,717 7,356 34 338 6

1,039

5,110

7,734

*Data presented include INAEXPO co-workers.

Region

No. of persons

%

Coast

2,453

32%

Highlands

2,670

35%

2,611

34%

7,734

100%

Sto. Domingo

Total general

Total number of co-workers and average turnover Number of co-workers and turnover

2010

Número total de empleados que Total number of co-workers that have han dejado el trabajo durante el resigned during the reported period. período reportado

11.23% Accrued 0.94% Average

11.03% Accrued 0.92% Average

Número y rango de empleados Number and range of co-workers que han dejado el empleo who have resigned during the durante el período reportado

1,632 persons total 136 persons on average

1,461 persons total 122 persons on average

Calculation with 7,175 persons on average/month

Calculation with 6,082 persons on average/month

reported period.

Número total de empleados al Total number of co-workers at the final del período reportado end of the reported period.

42

2011


Continuing Education System; PRONACA co-workers.

Continuing education The company centered its efforts and actions in the

the best universities and institutions, which insures the

development of its great human capital. Working alongside

development of the course of study of our co-workers.

its co-workers, it developed and implemented plans

During 2011, the company contributed with 70% and 90% of

that create added value for industrial processes and the

the training costs of our co-workers.

generation of quality professionals in Ecuador. Among the most noteworthy aspects of this endeavor is the Through the area of Organizational Development, PRONACA

implementation of the Continuing Education System, which

is executing the Training Plan, which has generated

is focused on the development of behavioral competencies

alliances with Educational Institutions and ďŹ rst-rate Training

and techniques that seek the comprehensive growth of co-

Providers. The training includes Postgraduate Studies

workers personally and professionally.

(Degrees and Masters Programs) that are executed with

Employment

2011

2010

Number of co-workers per level throughout Company operations at the end of the reported year.

OPE: 4,918 ADM: 2,409 EJEC: 44

OPE: 4,691 ADM: 2,335 EJEC: 46

Total number of hours invested in personnel training at each level of co-workers.

OPE: 6,818 ADM: 5,526 EJEC: 217

OPE: 6,189 ADM: 4,450 EJEC: 13

Number of training hours per year, per co-worker, and level.

OPE: 1.39 h/h ADM: 2.29 h/h EJEC: 4.93 h/h

OPE: 15 h/h ADM: 1.9 h/h EJEC: 0.3 h/h

Number of training hours per year, per level = Total hours per level/Total number of co-workers per level.

Total: 1.7 h/h

Total 1.7 h/h


Social balance Co-workers who have received performance evaluations No. of Persons Evaluated

Year

% of total co-workers

1,329 1,633 2,062 2,012 2,117

2007 2008 2009 2010 2011

% of Adm. and Exec. groups

21% 25% 31% 28% 29%

97% 92% 91% 84% 86%

Percentage of men and women in the Company Age group

Women

Under 30 Between 30 and 50 Over 50

Total

Men

Total general

575 811 46

2,594 3,411 297

3,169 4,222 343

1,432

6,302

7,734

Percentage of income per position Year

Administrative

Executive

Mixed

Operations

Total

2010 2011

45.67% 45.70%

12.12% 11.05%

10.15% 10.27%

32.06% 32.97%

100% 100%

Percentage of income per level and gender Administrative

Executive

Mixed

Year 2010 2011

FEM

MASC

FEM

MASC

FEM

10.65% 10.57%

35.02% 35.13%

0.36% 0.34%

11.76% 10.71%

0.55% 0.23%

Operations

Total

32.06% 32.97%

100% 100%

PRONACA has valuable co-workers in various regions of

PRONACA executed a Development Evaluation (basically

the country. Each one is the visible face of the company in

measuring organizational competencies), with a participation

reference to the client and final consumer.

of 99% in administrative areas (this evaluation is not performed at the operational level). We were able to ascertain proof

During 2011, PRONACA executed an Organizational Climate

of a significant growth of 87% regarding competencies in

and Culture Study along with a psycho-social survey that

comparison with last year’s 86%. This indicator is vital in

reached 88% of the company’s population, thus achieving

measuring the positive impact of internal training.

majority participation and significant results for the planning of co-workers’ well-being.

44


Employment benefits The company complies with current national legislation,

The uniform is established as a benefit for the feminine staff,

nonetheless, our co-workers have additional benefits such as

sales, and messengers. The personal injury insurance policy is

private health care and life insurance, savings accounts, which

for all organizational levels, depending on the valuing of the job

is optional, the PRONACA store, and membership cards for

position.

supermarkets and pharmacies.

Has the benefit Does not have the benefit

Type of Job Position OPE

MIX

ADM

EXEC

Life Insurance 2011

Medical care Personal accidents International policy

Type of Job Position OPE

MIX

ADM

EXEC

Savings account Company outing Christmas basket Benefits 2011

Uniform Work clothes PRONACA store Supermaxi card Fybeca card

Type of Job Position OPE Services 2011

Meals Transport Medical Services Best in operations

Acknowledgments 2011

Seniority Honorable mention Golden Rooster

MIX

ADM

EXEC


Results-oriented work is one of PRONACA’s keys for success.

Human work designed to improve the lives of our co-workers

Inclusion of persons with disabilities Intent on the purpose of promoting and strengthening observance of the rights of persons with disabilities,

The company worked hard to gather socioeconomic data

PRONACA has worked towards achieving the equitable

that could provide information on co-workers and their

inclusion of 275 co-workers with disabilities as of 2011.

families. In order to do this, PRONACA created a nationwide team of 12 professionals called the Social Work Team for the

PRONACA received on behalf of the Office of the Vice

three regions covering our operations. Our social workers

President of Ecuador and of the Ecuadorian General

address issues shown below as part of a comprehensive

Foundation, a business acknowledgment for best practices

procedure focused on verifying the situation of families:

in social and labor reinsertion for persons with disabilities for this period.

Home visits at the administrative and operational levels. Permanent hires. Data updating and demand for services that have to do with the family’s surroundings.

We covered 3 programs that have to do with the following issues:

Domestic violence. Financial intelligence and family economics. Entrepreneurship with our co-workers’ wives.

46


Annual Golden Rooster awards ceremony.

GOLDEN ROOSTER A recognition to the effort and commitment of many years The Golden Rooster is an initiative designed to acknowledge

The minimum time a co-worker must remain in the company

the efforts of company co-workers. During 2011, we evaluated

in order to reach this recognition is 5 years. This is an event

the work of 658 co-workers. We evaluated:

that recognizes seniority and is applied to every level in the

Teamwork. Results-oriented work and service. Communication. Innovation and creativity. Self-development and organizational knowledge.

10, 15, 20, and 25-year categories.

2011 Golden Roosters Acknowledgment Wood plaques Glass plaques Golden Rooster Large Golden Rooster Glass plaques Gold plaques Silver plaques

Category

Awardees

Best in Operations Honorary mention Golden Rooster Best teamwork / Operations center Best operations center Acknowledgment admin. and mixed years in serv. Acknowledgment oper. years in service

80 21 20 7 4 209 317

Total Awards

658


Internal communications system through digital displays, Inverna Building, Quito.

Internal Communications PRONACA successfully implemented the digital display pilot

Other communication tools

project in two operational centers of the company: at the Inverna

Pronoticias’ (Pronaca news):

Building (head office) and at the Southern Quito Distribution

with a total circulation of 7,500 magazine, i.e., one per every

Center. Through this pilot, PRONACA seeks to standardize

co-worker.

4 issues per year

message broadcast in the various operational centers with updated and pertinent information for each center, keeping all

The Pronoticias corporate magazine includes the bulletins

co-workers apprised of relevant issues.

“My Plant, My Job”. Its pages depict the life of the organization in general terms and those of certain operational centers

The information is transmitted through the internet via

specifically.

appropriate software and equipment. It offers historical information on the company, answers During 2011, we reached approximately 750 persons between

questions on procedures and internal practices, and

both operational centers. Starting on 2012, this initiative will be

addresses pertinent issues of PRONACA.

extended to other centers nationwide.

Intranet: We reach close to 1,500 users. Corporate Address for emails (PRONACA Comunica): 1,500 users.

Means for

delivering official information by the company, which seeks to channel and centralize information on the various businesses and areas.

48


Social balance ACHIEVEMENTS IN 2011 Organizational Development The company drove the development of a School

such as INDEG, ADEN BUSINESS SCHOOL, and the

for Internal Facilitators in order to capitalize on the

Zamorano Pan-american Agricultural School.

knowledge and experience of its outstanding coworkers and thus multiply knowledge.

PRONACA offered its executives the “Comprehensive Updating Program” in which high-ranking specialists of the

We held alliances with noteworthy institutions in the

company share knowledge and experiences with our top

country in order to lead processes for learning and

executives in order to hone our management skills by using

transfer of knowledge directed at specific needs of the

the most advanced Human Development and Business tools.

company, equipment, and persons. “It’s Never Too Late To Learn” is a project PRONACA We signed medium-term interaction agreements in

continued for those co-workers who did not finish their

order to guarantee quality education with institutions

elementary or high-school studies.

COMMITMENTS FOR 2012 Lorena Vallejo To work together on the ANFAB

Cost Accounting

with the MCPEC and MSP in order to lobby for a legislative change to

“Equality among co-workers is PRONACA’s priority”

obtain the Sanitary Registry through GMP.

Respect and equality for all of us working at PRONACA is the main To define a measurement index as

characteristic of this Company. For nine years I have developed

a parameter for Quality Assurance.

my activities normally since I have been given the necessary tools here to do so.

To maintain the certification and auditing centers.

process

at

operational

PRONACA has granted me the opportunity to grow professionally and demonstrate that a physical limitation does not hinder intellectual growth.


Social balance OCCUPATIONAL HEALTH AND SAFETY The culture of risk prevention at the jobsite is the basis of occupational health and safety. 2011 was noted for work performed in risk prevention at the

As part of the new scheme of medical services, we

jobsite. Within the area of Occupational Health and Safety,

inaugurated the Bucay Regional Medical Dispensary, which

PRONACA concentrated its efforts on the management of

was followed by the same model for the Santo Domingo

incident control as the basis of accident prevention. The

Regional operations. PRONACA redefined and standardized

Company executed safety promotion campaigns.

the Health Monitoring Plan for the control of work-related diseases.

In order to decrease work-related accidents, PRONACA

50 50

implemented and promoted safe attitudes and behaviors as

With the purpose of strengthening emergency readiness,

an ongoing Company program. The result of this work was a

PRONACA trained brigadiers for the control of fires,

full year without major accidents or fatalities. The company

evacuations, and first aid. The company began the paperwork

began observing in April the World Day of Occupational

for renewal of Regulations and Registration of Occupational

Health and Safety.

Health and Safety Committees.

PRONACA co-workers have the necessary tools and instruments to minimize work-related risks. Grain sorting machine, Rice peeler, Durán.


Creation of joint committees and subcommittees Joint Committees and Subcommittees

2011

2010

Occupational Health and Safety Committees and Subcommittees with a constituency of 50% of all co-workers.

50%

50%

Creation of the Central Committee and Subcommittee with the participation of co-worker representatives.

1 Central Committee 75 Subcommittees 348 co-workers out of 5,539

1 Central Committee 22 Subcommittees 138 co-workers out of 4,833

INAEXPO Central Committee.

1 Central Committee 1 Subcommittee 12 co-workers out of 907

1 Central Committee 1 Subcommittee 12 co-workers out of 825

Rates

Accidents (1)

Possible occupational diseases (2)

Lost time days (3)

Absenteeism (4)

2011

2010

7.51

7.65

32.16

44.02

109.33

90.77

855.8

729.67

Results 124 AR during 2011, with 16,508,300 co-worker/ hours worked 531 possible occupational diseases with 16,508,300 co-worker/ hours worked

2010 – 2011 variation (12,098) (14,128); absenteeism increased

2010 (12,098) - 2011 (14,128); absenteeism increased.

(1) The accident rate (AR) is calculated based on accidents that generated a full workday of absenteeism, multiplied by a factor of 1,000,000, and divided by the co-worker hours worked, with data going to December. (2) The Rate of Occupational Diseases (ROD) is the number of cases of possible occupational diseases, multiplied by 1,000,000 and divided by the number of co-worker hours worked. (3) The Rate of Lost Time Days (RLTD) is the sum of lost days due to work-related accidents, multiplied by 1,000,000, and divided by the number of co-worker hours worked, with data going to December.


Preventive health is a priority for the Company. Medical dispensary, Rice Peeler, Durรกn.

Health promotion Areas of Investment (thousands of US$) Industrial Safety PPE Industrial hygiene Health

Total Health Card Medicines Health Monitoring Health Promotion Total

Total SSO

2011

Drills

2010 300 841 30 0

298 713 22 109

1,172

1,143

94 108 125 28

37 51 167 10

355

264

1,527

1,407

Operational centers Drill compliance Nยบ of co-workers evacuated % of co-workers evacuated

2010

89% 100% 11,295% 87%

89% 94% 9,525% 74%

Company / Hours in training

2011

2010

Co-workers Total promotion hours Proportion

6,612 4,758 0.74

6,448 6,021 0.96

*The proportion is calculated by dividing promotion hours by the number of co-workers. Emergency preparedness implies the development of two annual drills.

52

2011


Social balance DIALOGUE AND RELATIONSHIPS WITH STAKEHOLDERS

16

social and trade associations form a working network of which PRONACA forms a part.

A+

is the score obtained by the Sustainability Reports published by PRONACA.

PRONACA is a member of the Global Pact in Ecuador, CERES, and CEMDES.

Through specialized technical consultancy, PRONACA offers permanent advice to Integrated Farmers. Circle of Success Program.


Social balance PRONACA contributes to position Corporate Responsibility in Ecuador by maintaining positive relationships with all stakeholder groups. During 2011, PRONACA worked together with the Global Pact

During 2011, PRONACA exchanged knowledge and shared

Network, The Ecuadorian Consortium of Social Responsibility,

experiences with public and private sector companies,

(CERES),

Sustainable

fostering the importance of business sustainability. At

Development of Ecuador (CEMDES), in order to strengthen

and

the

Business

Council

for

the same time, it maintained cooperation bonds with

and drive corporate responsibility in Ecuadorian Society.

representative organizations and associations of industrial and business development.

THE GLOBAL COMPACT

54


Acknowledgments Year

2011

Granting institution

Award, acknowledgment, or certification

CEMEFI, Mexican Center for Philanthropy

Recognition to Exemplary Company in Latin America.

Líderes Ecuadorian Magazine.

First place nationwide as a Socially Responsible Company.

General Rumiñahui Acknowledgment, Provincial Council of Pichincha.

Acknowledgment to the Company with Best Consumer Practices in the category of large national companies.

CERES Ecuadorian Consortium of Social Responsibility.

Acknowledgment for outstanding participation as part of the Board for 2010-2012.

CEMDES Business Council for Sustainable Development of Ecuador.

Global Pact, Ecuador Chapter.

2011 Elections, Presidency of the Global Pact Network, Ecuador Chapter.

2011 Elections for the Presidency of the Global Pact Network for a period of 2 years.

Generating positive relationships with the communities. PRONACA implements initiatives that seek for the well-being of stakeholders and communities with which it interacts. During 2011, the company worked hard at consolidating good relationships with the various stakeholders from the production chain. It excelled in managing joint work with authorities and providing information on issues that the company handles. In specific cases, visitors toured operational centers from PRONACA operations. Relationships with stakeholders were concentrated in the three regional centers: Coast, Highlands, and Santo Domingo de los Tsáchilas. PRONACA strengthened communications channels with communities and specific stakeholders at the local level.


Wellbeing and health of neighboring communities The most relevant aspects of the implementation were as follows: PRONACA delivered updated information to the network of integrated poultry farmers from Santo Domingo de los Tsáchilas concerning changes on legal norms of the area. The company held training workshops for small business owners on proper feed processing. Work with the Poly Ugarte Foundation in campaigns for breast cancer prevention in communities of operations of the Coast. PRONACA led an awareness-creation campaign on the importance of having a timely medical checkup. With the support of the Municipality of Bucay and of the IESS (Ecuadorian Institute for Social Security), PRONACA assisted 1,522 women aged 15 to 70. in collaboration with the Municipality of Guayaquil and other private companies, we assisted a total of 15,000 women. PRONACA created medical brigades designed to prevent diseases and promote health. Within this context, we vaccinated 65 children under the age of two against polio and the influenza virus. The Company implemented a campaign in Bucay for the prevention of alcoholism and drug addiction through community speakeasies held with local zonal leaders. PRONACA

held

two

workshops

together

with

the

Municipalities of Cumandá and Bucay regarding how to act in the event of fire, and also on first aid. Groups of co-workers participated in community group efforts to clean up and paint several schools such as the 26 de enero de Casa Blanca, Matilde Esther and Martha Bucaram schools, as well as the recovery and improvement of the park at the neighborhood of Brisas de Santay. The PROvoluntarios (PROvolunteers) brigade organized a Christmas dinner for the elderly living in the area of influence of operational centers in order to share the spirit of the season.

56 56

Visit from representatives of the Netherlands Development Organization (SNV) from Mozambique, Zimbabwe, and The Netherlands in order to learn about the Included Integrated Program from PRONACA.


Social balance FUNDACIÓN SAN LUIS

7,747

hours of social volunteering.

114

graduates and 10 graduate classes.

2,686

hours of environmental volunteering.

61

social-action institutions involved.

18,986

persons received food through the San Luis Foundation.

Students from the San Pedro de Valle Hermoso Educational Unit, Fundación San Luis.


Social balance

PRONACA is committed to education in the rural sector and to the delivery of food for the lower-income population. Education Human education, use of technologies, early-age stimulation,

These centers, where PRONACA co-workers children attend

and training of small entrepreneurs, are the four areas

together with youngsters from neighboring communities,

targeted by the educational model of the Fundación San Luis

offer high-level elementary and high-school education in rural

at the Educational Units of San Juan de Bucay and San Pedro

areas.

de Valle Hermoso. During 2012, the San Pedro de Valle Hermoso Educational Unit will graduate its first group of students.

Information / Educational Units

58 58

Total

Community

PRONACA

Graduates

Promotions

San Juan de Bucay

375

63%

37%

114

10

San Pedro de Valle Hermoso

293

68%

32%

0

0

Students apply their knowledge in computers at the computer lab at the Educational Units of San Pedro de Valle Hermoso and San Juan de Bucay


It’s Never Too Late to Learn PRONACA offers the option of finishing elementary or high-school for its co-workers who for whatever reason have not finished their studies, through the “It’s Never Too Late to Learn” (Netpa—in Spanish) Program. Those who are part of this group on occasion attend classes imparted by qualified teachers in order to conclude the studies that for personal or family reasons were not concluded at their due time.

Participants from It’s Never Too Late to Learn - 2011 Program Highlands

199

Coast

152

Sto. Domingo

77

Total Netpa

428

Food Bank During 2011, in cooperation with the Archdioceses of Guayaquil, the Fundación San Luis expanded its coverage of food donation programs, through the Food Bank Program, geared to donating products to underprivileged areas of Guayas. During this year, this action benefited 9,559 persons of the Province of Guayas.

Students from the It’s Never Too Late to Learn Program.


Social balance During 2011, PRONACA donated a total of 45,086 kg of food that benefited 18,986 persons.

Product Chicken Cold cuts Pork meat Rice Cooking oil Eggs Fish

Total

Total Kg. 2011 18,708 10,222 2,016 12,029 874 242 994

45,086

Children from foundations associated to the Food Bank Program.

*Data from the Fundación San Luis including the Food Bank.

The Fundación San Luis works with charitable foundations

delivering food to more people, thus expanding its coverage.

and institutions in a self-managing system that allows

City

Babahoyo Cayambe Cuenca Esmeraldas Guayaquil Ibarra Manta Quito Santa Elena Sto. Domingo

Total

Number of Foundations

% Coverage

Persons Benefited

% Benefited

2 1 3 1 4 4 1 40 1 4

3% 2% 5% 2% 7% 7% 2% 66% 2% 7%

120 65 139 205 9,559 180 200 8.127 150 241

1% 0% 1% 1% 50% 1% 1% 43% 1% 1%

61

100%

18,986

100%

*Data Fundación San Luis, including the Food Bank.

Volunteering During the last period, PRONACA created work teams called

Another important project is the personal support minimally-

PROvolunteers in order to manage activities of social and

disabled PRONACA co-workers offer other institutions and

environmental support led by the Fundación San Luis. The

foundations as part of their work. In this manner, these

Company highlighted reforestation programs in Quito and in

organizations receive support in their tasks by generating

Guayaquil.

new spaces of employment for persons with special capacities.

60


ACHIEVEMENTS IN 2011 Volunteering Pronaca built four laboratories at each one of its

facilities and equipment for their Biology, Chemistry, and

educational centers.

Physics courses, along with other audiovisual equipment.

Today, the Educational Units of San Juan de Bucay and San Pedro de Valle Hermoso each boast specific

428 co-workers participated in the Netpa Program.

COMMITMENTS FOR 2012

Paúl Barrera Production Supervisor

To deliver daily rations of nutritional food,

Avepica Incubator

and expand coverage of the number of persons attending the institutions with which Fundación San Luis works.

“I am a great professional thanks to the support given to me by PRONACA”

To offer opportunities to improve quality

My relationship with PRONACA began 14 years ago when I had

of life and help in solidarity by increasing

the opportunity to study high-school at the San Juan de Bucay

corporate volunteering to 8,000 hours.

Educational unit. The children of PRONACA co-workers children and the youngsters from the community attended this school.

To implement two academies in English and Computer Science at each one of the Educational Units.

I’m very thankful to PRONACA because, besides contributing towards my studies, the company recognized my effort and dedication. Through the auspices of the Fundación San Luis, I was awarded a scholarship to attend the university at

To train 640 parents in issues related to the

the Escuela Superior Politécnica del Litoral, where I studied

integral rearing of children and youngsters.

Telematics Engineering. Another one of the opportunities PRONACA has afforded me is to be able to demonstrate my know-how and accrued experience, since I now work at the Avepica Incubator Plant as Production Supervisor.


62


64


Indicators GRI G3 Content Index Application Level

A+

Third-party-checked

Assured by

Deloitte & Touche

STANDARD DISCLOSURES PART I: Profile Disclosures 1. Strategy and Analysis Profile Disclosure

Description

CrossReported reference/ Direct answer

1.1

Statement from the most senior decision-maker of the organization. Fully

P. 6

1.2

Description of key impacts, risks, and opportunities.

P. 6

Partially

If applicable, indicate the part not reported

Reason for omission

Explanation

Opportunities are mentioned information is not detailed enough, and it is not reported but no key impacts or main Proprietary The information in two paragraphs, as recommended by the GRI. risks of the business.

2. Organizational Profile Profile Disclosure

Description

CrossReported reference/ Direct answer

2.1

Name of the organization.

Fully

2.2

Primary brands, products, and/or services.

Fully

P. 7

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

Fully

P. 9

2.4

Location of organization’s headquarters.

Fully

P. 9

2.5

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

Fully

Pp. 9 - 15

2.6

Nature of ownership and legal form.

Fully

P. 9

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

Fully

Pp. 9,15,31

2.8

Scale of the reporting organization.

Partially

Pp. 11-12-13

2.9

Significant changes during the reporting period regarding size, structure, or ownership.

Fully

P. 65

2.10

Awards received in the reporting period.

Fully

Pp. 46 - 55

If applicable, indicate the part not reported

Reason for omission

Explanation

P. 5

Some info about shareholders Proprietary information is missing

3. Report Parameters Profile Disclosure

Description

CrossReported reference/ Direct answer

3.1

Reporting period (e.g., fiscal/calendar year) for information provided.

Fully

3.2

Date of most recent previous report (if any).

Fully

P. 5

3.3

Reporting cycle (annual, biennial, etc.)

Fully

P. 65

3.4

Contact point for questions regarding the report or its contents.

Fully

P. 65

3.5

Process for defining report content.

Fully

P. 5

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

Fully

P. 5

3.7

State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

Fully

P. 5

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

Fully

P. 65

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.

Fully

P. 65

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

Fully

P. 62

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. boundary, or measurement methods applied in the report.

Fully

Pp. 62

3.12

Table identifying the location of the Standard Disclosures in the report.

Fully

Pp. 62 - 66

3.13

Policy and current practice with regard to seeking external assurance for the report.

Fully

Pp. 5-69-70

If applicable, indicate the part not reported

Reason for omission

Explanation

P. 5

4. Governance, Commitments, and Engagement Profile Disclosure

Description

CrossReported reference/ Direct answer

4.1

Governance structure of the organization, including committees Fully under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

P. 9

4.2

Indicate whether the Chair of the highest governance body is Fully also an executive officer.

P. 6

4.3

For organizations that have a unitary board structure, state the Partially number of members of the highest governance body that are independent and/or non-executive members.

P. 9

4.4

Mechanisms for shareholders and employees to provide Partially recommendations or direction to the highest governance body.

P. 9

If applicable, indicate the part not reported

Reason for omission

The number of independent members are mentioned, executive members is missing

Proprietary information

The specfic mechanism Proprietary to provide such recommendations is missing. information

Explanation

Only the general governance body is mentioned, the rest of the members are not mentioned because it is strategic information of the company. The way the board and government operate is reported, the mechanisms to provide with recommendations exist, but were not fully described in the report as it is the internal strategic procedure

65


4. Governance, Commitments, and Engagement Profile Disclosure

Description

CrossReported reference/ Direct answer

Linkage between compensation for members of the highest Not governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).

--

4.6

Processes in place for the highest governance body to ensure Not conflicts of interest are avoided.

--

4.7

Process for determining the qualifications and expertise of Not the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics.

--

4.8

Internally developed statements of mission or values, codes of Fully conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

P. 8

4.9

Procedures of the highest governance body for overseeing Fully the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

P. 9

4.10

Processes for evaluating the highest governance body’s Fully own performance, particularly with respect to economic, environmental, and social performance.

P. 9

4.11

Explanation of whether and how the precautionary approach or Fully principle is addressed by the organization.

Pp. 9 - 50

4.12

Externally developed economic, environmental, and social Fully charters, principles, or other initiatives to which the organization subscribes or endorses.

Pp. 55-56-5758-59

4.13

Memberships in associations (such as industry associations) Fully and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.

Pp. 54, 66

4.14

List of stakeholder groups engaged by the organization.

Pp. 53, 54

4.5

Partially

If applicable, indicate the part not reported

Reason for omission Explanation

It is core financial information of the company, thus it is not

Proprietary information likely to be revealed in a public document.

Proprietary The information lies within the highest governance body, and as information a company internal procedure, not reported. Proprietary The information lies within the highest governance body, and as information a company internal procedure, not reported.

4.15

Basis for identification and selection of stakeholders with whom Fully to engage.

Pp. 55-56

4.16

Approaches to stakeholder engagement, including frequency of Fully engagement by type and by stakeholder group.

Pp. 55-56

4.17

Key topics and concerns that have been raised through stakeholder Fully engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

Pp. 55-56

The stakeholder groups are not clearly identified in the report

Proprietary Pronaca has many stakeholders, with whom it has good information communication and relationship. Nevertheless the mapping is

not yet clearly stablished in the report, it is strategic information of the company

STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs) CrossReported reference/ Direct answer

G3 DMA

Description

DMA EC

Disclosure on Management Approach EC

Aspects

Economic performance

Fully

Market presence

Fully

Pp. 11-13-16-18 Pp. 9-11-13-15

Indirect economic impacts

Fully

Pp. 19 -20-23

Pp. 35-36

If applicable, indicate the part not reported

DMA EN

Disclosure on Management Approach EN

Aspects

Materials

Fully

Energy

Partially Pp. 25-26-29 A complete description of

Water

Fully

Pp. 18-2527-29

Biodiversity

Not

--

Emissions, effluents and waste

Partially Pp. 25-26-27 There are not data about

Products and services

Fully

Pp. 32-36

Compliance

Fully

Pp. 8-1823-28

Transport

Not

--

Overall

Fully

Pp. 24-29

66

Reason for omission

To be reported in

There are no measurements yet about the total amount of energy saved and the multiples of joules (Kw) for direct energy use are not specified, or for the indirect energy consumtion.

2013

Not available

Pronaca is not present in sensitive areas of high biodiversity or near protected natural areas.

2013

Not available

Programs or policies are not set up yet by the firm.

Not available

Information gathering still in process

Not the management of energy available is not fully described, the amount of indirect energy consumption or the energy saved for instance.

amount of composted waste, recovered waste, deep well injection or on-site storage policies or programs.

Explanation

2013


Indicators GRI CrossReported reference/ Direct answer

G3 DMA

Description

DMA LA

Disclosure on Management Approach LA

Aspects

Employment

Fully

Pp. 21-27

Labor/management relations

Fully

Pp. 21-33

Occupational health and safety

Fully

Pp. 28-30

Training and education

Fully

Pp. 31-33

Diversity and equal opportunity

Fully

Pp. 42-44

Pp. 43-46

DMA HR

Disclosure on Management Approach HR

Aspects

Investment and procurement practices

Fully

Non-discrimination

Fully

P. 46

Freedom of association and collective bargaining

Fully

P. 69

Child labor

Partially

P. 41

Forced and compulsory labor

Fully

P. 42

Security practices

Fully

Pp. 35-36-50

Indigenous rights

Fully

P. 70

DMA SO

Disclosure on Management Approach SO

Aspects

Community

Fully

Pp. 55-56

Corruption

Fully

P. 8

Public policy

Fully

P. 8

Anti-competitive behavior

Fully

Pp. 8-31

Compliance

Fully

Pp. 18-31

Pp. 31, 35-39

DMA PR

Disclosure on Management Approach PR

Aspects

Customer health and safety

Fully

Product and service labelling

Fully

P. 31

Marketing communications

Fully

P. 29-33

Customer privacy

Fully

P. 31

Compliance

Fully

P. 31

If applicable, indicate the part not reported

Specific actions or programs to fight against child labor are missing from the report

Reason for omission

Not material

Explanation

To be reported in

The company respects the law and has joined the Global Compact principles, but does not have a specific program or actions regarding child labor yet.

STANDARD DISCLOSURES PART III: Performance Indicators Economic Performance Indicator

Description

CrossReported reference/ Direct answer

If applicable, indicate the part not reported

Reason for omission

Explanation

To be reported in

Economic performance EC1

Direct economic value generated and distributed, including Fully revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

P. 11

EC2

Financial implications and other risks and opportunities for Fully the organization’s activities due to climate change.

P. 11

EC3

Coverage of the organization’s defined benefit plan obligations. Fully

P. 11

EC4

Significant financial assistance received from government.

Fully

P. 67

EC5

Range of ratios of standard entry level wage compared to local Fully minimum wage at significant locations of operation.

P. 13

EC6

Policy, practices, and proportion of spending on locally-based Fully suppliers at significant locations of operation.

P. 31

EC7

Procedures for local hiring and proportion of senior Not management hired from the local community at significant locations of operation.

Pp. 11-13

Market presence

Not available

Pronaca is working on the process on the regions it operates but with no information yet

2013

Indirect economic impacts EC8 EC9

Development and impact of infrastructure investments and services Fully provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

Pp. 11-13

Understanding and describing significant indirect economic Fully impacts, including the extent of impacts.

Pp. 19-20-21

67


Environmental Performance Indicator

Description

CrossReported reference/ Direct answer

If applicable, indicate the part not reported

Reason for omission

Explanation

To be reported in

Materials EN1

Materials used by weight or volume.

Fully

P. 26

EN2

Percentage of materials used that are recycled input materials.

Fully

P. 26

Energy EN3

Direct energy consumption by primary energy source.

Fully

P. 26

EN4

Indirect energy consumption by primary source.

Partially

P. 26

The indirect energy is not measured specifically

Not available

The indirect energy consumption hasn´t been measured by the company yet

2013

EN5

Energy saved due to conservation and efficiency improvements.

Partially

P. 27

The indirect energy is not measured specifically

Not available

The energy saved is not measured specifically yet by the company

2013

EN6

Initiatives to provide energy-efficient or renewable energy Not based products and services, and reductions in energy requirements as a result of these initiatives.

P. 68

Not available

There haven’t been any measurements performed

2013

EN7

Initiatives to reduce indirect energy consumption and Not reductions achieved.

P. 68

Not available

There haven’t been any measurements performed

2013

Water EN8

Total water withdrawal by source.

Not

--

Not available

Water sources significantly affected by withdrawal of water. Not

--

Not available

There haven’t been any measurements performed. Pronaca is plannig to measure its hydric footprint. There haven’t been any measurements performed. Pronaca is plannig to measure its hydric footprint.

2013

EN9 EN10

Percentage and total volume of water recycled and reused.

--

Not available

There haven’t been any measurements performed. Pronaca is plannig to measure its hydric footprint.

2013

Not

2013

Biodiversity EN11

Location and size of land owned, leased, managed in, or adjacent Fully to, protected areas and areas of high biodiversity value outside protected areas.

P. 68

EN12

Description of significant impacts of activities, products, and Fully services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

P. 68

EN13

Habitats protected or restored.

P. 68

EN14

Strategies, current actions, and future plans for managing impacts Not on biodiversity.

--

Not material

As mentioned before, PRONACA does not have any operation near high biodiversity areas, so any strategy or program for mitigate impacts were implemented.

EN15

Number of IUCN Red List species and national conservation list Not species with habitats in areas affected by operations, by level of extinction risk.

--

Not material

As mentioned before, PRONACA does not have any operation near high biodiversity areas, so any study on red list species made.

Not available

There haven’t been any measurements performed, but Pronaca is plannig to measure this in the incoming years.

2013

Fully

Emissions, effluents and waste EN16

Total direct and indirect greenhouse gas emissions by weight.

Fully

Pp. 25-29

EN17

Other relevant indirect greenhouse gas emissions by weight.

Not

--

EN18

Initiatives to reduce greenhouse gas emissions and reductions Fully achieved.

EN19

Emissions of ozone-depleting substances by weight.

Not

--

Not available

There haven’t been any measurements performed, but Pronaca is plannig to measure this in the incoming years.

2013

EN20

NOx, SOx, and other significant air emissions by type and weight.

Not

--

Not available

There haven’t been any measurements performed, but Pronaca is plannig to measure this in the incoming years.

2013

EN21

Total water discharge by quality and destination.

Fully

Pp. 25-29

EN22

Total weight of waste by type and disposal method.

Fully

P. 26

EN23

Total number and volume of significant spills.

Not

--

Not material

As there wasn’t any kind of spill, there wasn’t any measurement performed

2013

EN24

Weight of transported, imported, exported, or treated waste deemed Fully hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

P. 68

EN25

Identity, size, protected status, and biodiversity value of water Not bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.

--

Not material

As there wasn’t any kind of spill, there wasn’t any measurement performed

Not available

The company hasn’t developed yet a program to reclaim its products at the end of their life cycle

--

Not material

Pronaca hasn’t had any sanction

--

Not available

The measurement is still in process

Not material

Pronaca does not have a complete program to measure all its environmental impacts yet.

Pp. 25-29

Products and services EN26

Initiatives to mitigate environmental impacts of products and Fully services, and extent of impact mitigation.

EN27

Percentage of products sold and their packaging materials that are Partially reclaimed by category.

Pp. 25-29 P. 25

The indirect energy is not measured specifically

2013

Compliance EN28

Monetary value of significant fines and total number of non- Not monetary sanctions for non-compliance with environmental laws and regulations.

EN29

Significant environmental impacts of transporting products and Not other goods and materials used for the organization’s operations, and transporting members of the workforce.

EN30

Total environmental protection expenditures and investments by Partially type.

Transport

Overall

68

Pp 25-28

There are not measurements made on emissions treatment, or prevention programs.

2012


Indicators GRI Social: Labor Practices and Decent Work Performance Indicator

Description

CrossReported reference/ Direct answer

If applicable, indicate the part not reported

Reason for omission

Explanation

To be reported in

Employment LA1

Total workforce by employment type, employment contract, and Fully region.

P. 45

LA2

Total number and rate of employee turnover by age group, gender, Fully and region.

P. 42

LA3

Benefits provided to full-time employees that are not provided to Fully temporary or part-time employees, by major operations.

P. 45

LA4

Percentage of employees covered by collective bargaining Not agreements.

--

Not material

There isn’t any association or syndicate formed within the company

Not

--

Not material

There isn’t any association or syndicate formed within the company

Not available

The work fatalities per region are missing, only a global record has been kept.

Not material

PRONACA hasn’t developed this kind of career ending managing programs yet.

Not available

No detailed information about minorities or other groups is given, there hasn’t been a measurement of these two aspects yet.

Labor/management relations

LA5

Occupational health and safety LA6

Percentage of total workforce represented in formal joint Fully management-worker health and safety committees that help monitor and advise on occupational health and safety programs.

P. 51

LA7

Rates of injury, occupational diseases, lost days, and absenteeism, Partially and number of work-related fatalities by region.

P. 51

LA8

Education, training, counseling, prevention, and risk-control Fully programs in place to assist workforce members, their families, or community members regarding serious diseases.

P. 69

LA9

Health and safety topics covered in formal agreements with trade Fully unions.

Pp. 50-51, 68

LA10

Average hours of training per year per employee by employee Fully category.

LA11

Programs for skills management and lifelong learning that support Partially the continued employability of employees and assist them in managing career endings.

LA12

Percentage of employees receiving regular performance and career Fully development reviews.

LA13

Composition of governance bodies and breakdown of employees Partially per category according to gender, age group, minority group membership, and other indicators of diversity.

P. 9

LA14

Programs for skills management and lifelong learning that support Fully the continued employability of employees and assist them in madevelopment reviews.

P. 44

The data per region is missing

2013

Training and education P. 43 --

P. 44

Diversity and equal opportunity Missing information about minorities or other groups.

2013

Social: Human Rights Performance Indicator

Description

CrossReported reference/ Direct answer

If applicable, indicate the part not reported

Reason for omission

Explanation

To be reported in

Investment and procurement practices HR1

Percentage and total number of significant investment agreements Fully that include human rights clauses or that have undergone human rights screening.

P. 69

HR2

Percentage of significant suppliers and contractors that have Fully undergone screening on human rights and actions taken.

P. 70

HR3

Total hours of employee training on policies and procedures Not concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

--

HR4

Total number of incidents of discrimination and actions taken.

Not available

The training subjects are not specified, only the global amount of training hours are measured and reported, all subjects combined.

--

Not material

There are not workers associated

--

Not available

No measures to counter child labor have been developed yet

2013

Non-discrimination Fully

P. 70

Freedom of association and collective bargaining HR5

Operations identified in which the right to exercise freedom of Not association and collective bargaining may be at significant risk, and actions taken to support these rights.

HR6

Operations identified as having significant risk for incidents of child Not labor, and measures taken to contribute to the elimination of child labor.

Child labor 2013

69


Social: Human Rights Performance Indicator

Description

CrossReported reference/ Direct answer

If applicable, indicate the part not reported

Reason for omission

Explanation

To be reported in

Forced and compulsory labor HR7

Operations identified as having significant risk for incidents of Partially forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor.

HR8

Percentage of security personnel trained in the organization’s Partially policies or procedures concerning aspects of human rights that are relevant to operations.

HR9

Total number of incidents of violations involving rights of indigenous Fully people and actions taken.

P. 70

There hasn´t been a study Not to determine activities with available significant risk concerning compulsory labor

PRONACA respects the current legislation and the Global Compact principles, and does not allow compulsory labor

P. 70

The personnel has been Not available trained, but there is no percentage of the part that recieved the training.

The personnel has been trained, but there is no measurement of the percentage that recieved the training specifically.

2013

Security practices

Indigenous rights P. 70

Social: Society Performance Indicator

Description

CrossReported reference/ Direct answer

If applicable, indicate the part not reported

Reason for omission

Explanation

To be reported in

Community --

Not available

It is still an ongoing process

2013

Percentage and total number of business units analyzed for risks Not related to corruption.

--

Not available

No percentage is mentioned, PRONACA has joined the Global Compact and it is planning to make an internal analysis in the incoming years.

2013

SO3

Percentage of employees trained in organization’s anti-corruption Not policies and procedures.

--

Not available

No percentage is mentioned, PRONACA has many training programs but it is just setting up the anti-corruption training.

2013

SO4

Actions taken in response to incidents of corruption.

--

SO1

Nature, scope, and effectiveness of any programs and practices Not that assess and manage the impacts of operations on communities, including entering, operating, and exiting.

SO2

Corruption

Fully

Public policy SO5

Public policy positions and participation in public policy Fully development and lobbying.

SO6

Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. Fully

P. 70

P. 70

Anti-competitive behavior SO7

Total number of legal actions for anti-competitive behavior, anti-trust, Fully and monopoly practices and their outcomes.

SO8

Monetary value of significant fines and total number of non- Fully monetary sanctions for non-compliance with laws and regulations.

Pp. 31, 70

Compliance P. 70

Social: Product Responsibility Performance Indicator

Description

CrossReported reference/ Direct answer

Customer health and safety PR1

Life cycle stages in which health and safety impacts of products Fully and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

P. 35

PR2

Total number of incidents of non-compliance with regulations and Fully voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

P. 71

PR3

Type of product and service information required by procedures, Fully and percentage of significant products and services subject to such information requirements.

Pp. 30-34

PR4

Total number of incidents of non-compliance with regulations and Fully voluntary codes concerning product and service information and labeling, by type of outcomes.

P. 71

PR5

Practices related to customer satisfaction, including results of Fully surveys measuring customer satisfaction.

P. 34

PR6

Programs for adherence to laws, standards, and voluntary codes Fully related to marketing communications, including advertising, promotion, and sponsorship.

Public policy

Marketing communications

70

P. 31

If applicable, indicate the part not reported

Reason for omission

Explanation

To be reported in


Indicators GRI Performance Indicator

Description

CrossReported reference/ Direct answer

If applicable, indicate the part not reported

Reason for omission

Explanation

To be reported in

Customer health and safety PR7

Total number of incidents of non-compliance with regulations and Fully voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

PR8

Total number of substantiated complaints regarding breaches of Fully customer privacy and losses of customer data.

PR9

Monetary value of signiďŹ cant ďŹ nes for non-compliance with laws Fully and regulations concerning the provision and use of products and services.

P. 71

Customer privacy Pp. 34, 71

Compliance P. 71

71


72


CONTENTS SUSTAINABILITY REPORT FINAL CREDITS Procesadora Nacional de Alimentos C.A., PRONACA Responsible for the Sustainability Report 2011: Christian J. Bakker, Corporate Responsibility Manager Content Development Coordination: Ximena Almeida Cordero, Stakeholder Manager Design and Photography Coordination: Xavier Noboa, Corporate Marketing Manager EDITION Benjamin Ortiz, Chief Executive Officer. BO Asociados - Quantum Alejandra Torres Onofa, Account Manager. BO Asociados - Quantum DESIGN AND LAYOUT Norlop JWT Ecuador PHOTOGRAPHY Xavier Jรกcome PRONACA Photo Archives PRINT - OUT EQUIGRUPO

For further information: www.pronaca.com Comments: responsabilidadcorporativa@pronaca.com This sustainability report is printed on environmentally friendly and non-toxic inks, in a limited edition of 50 copies, with a digital version in order to avoid the consumption of resources affecting nature.


Sustainability Report

Procesadora Nacional de Alimentos C.A. Los Naranjos N44-15 y Los Granados (593)23946700. Quito – Ecuador. www.pronaca.com

Corporate Responsibility 2011  

Corporate Responsibility Report 2011