Responsible Business
Juice
Sustainability being a cornerstone of our juice business model, in 2022 we continued to promote the adoption of sustainable production practices throughout the citrus juice value chain, harnessing innovation, maintaining sustainability certifications at our farms and processing plants, and strengthening ties with certifying organizations.
Sustainable Production
At LDC, we believe that sustainable production practices are not only good for the environment, they are also good for business. Despite severely adverse weather conditions and ongoing supply chain challenges in 2022, the systematic implementation of sector best practice in irrigation, pollination, farm management, satellite imaging and agricultural treatments led processed fruit volumes to increase by approximately 20% year on year. At our juice processing facility in Bebedouro, São Paulo State, Brazil, we invested over US$2,200,000 in a wastewater treatment plant.
Shared Knowledge for Sustainability
We also continued to share our expert knowledge with third party fruit suppliers through Programa Compartilhar – our knowledge-sharing program that has brought together fruit suppliers from various Brazilian states (São Paulo, Minas Gerais and Paraná) since 2015 to discuss a wide range of subjects for sustainable agricultural best practice: traceability, new technologies, biological control and others.
In 2022, three program sessions covered sustainable management of leprosis in citrus, pest control and the ProteCitrus list, as well as LDC’s sustainability commitments and standards. More than 100 people (representing over 80% of our citrus fruit volumes sourced from third party suppliers) participated in the meetings, helping to strengthen sustainable production in the region and reinforcing LDC’s ties with suppliers.
Conserving Biodiversity
We know that the long-term success of our business depends on the responsible use of natural resources. Aware of our responsibility to help shape a sustainable future, we seek to reduce the environmental impacts of our operations and act to preserve biodiversity.
We have implemented Biodiversity Protection and Conservation Plans for LDC-managed citrus farms in Brazil, with emphasis on planting native seedlings in protected areas.
Our main reforestation strategy focused on nucleation methodology, which relies on planting ‘islands’ of vegetation as focal areas of recovery, composed of species with the ecological capacity to significantly improve the environment and facilitate occupation of the area by other species.
Case Study
Together for the Environment
Our ‘Juntos Pelo Meio Ambiente’ (Together for the Environment) program began in 2012, working with primary school children from local communities living near LDC-managed citrus farms.
The project seeks to encourage a conservationist mindset and respect for natural and cultural resources among participating children, by raising their awareness of topics such as:
- The preservation of fauna and flora
- Sustainable agricultural production
- The importance and purpose of the ecological balance of natural ecosystems.
In 2022, for the first time, the program was run at all LDC-managed farms, where the children learned about waste recycling and agricultural activities, toured the farms and helped plant native seedlings, among other activities.
Sustainable Finance
In July 2022 LDC signed a sustainability-linked, 10-year US$40 million term loan facility with Société de Promotion et de Participation pour la Coopération Economique, linking our financing model with our efforts to create fair and sustainable value across our activities and value chains, covering both. This was the Group’s first loan facility to include both environmental and social commitments.
Certification Highlights
We maintained our high level of certification across LDC-managed citrus farms and juice processing facilities in 2022.
All 38 farms remain verified to Sustainable Agriculture Initiative Platform standards, 37 to gold level and one to silver level.
Thirty-two of our farms are also Rainforest Alliance Certified™, as are our industrial facilities in São Paulo State, Brazil (Matão, Bebedouro, Santos) and Ghent, Belgium, and our facility in Paranavaí, Paraná State, Brazil, is certified by Fairtrade, a leader in the global movement to make fair trade.
Case Study
Certification Supporting Communities
In 2022, our Juice team registered the commercialization of 100% segregated Fairtrade juice for the first time. The orange juice certified under the Fairtrade seal comes from fruit supplied by Coopsoli, an association of 38 citrus growers, where premium payment is guaranteed for certified fruit – value that aims to generate investments in social, economic or environmental projects in surrounding communities. Here are three example community projects developed by Coopsoli.
Besides the Juice
This project aims to empower women (either cooperative members or members of their families) to set up a small business and so diversify the family income. To this end, training was provided on how to produce and market ornamental plants.
Conscious Flowering
The cooperative developed a partnership with regional beekeepers to install beehives in the orange orchards during the blossom season. The project includes training for citrus growers who are interested in having their own hives and producing orange honey, a high-value product for the local market. Besides the environmental benefits gained from the reintroduction of bees into their natural habitat, the project also incentivized the use of biological products that are not harmful to bees for pest management.
Fertile Soil
Soil analyses were carried out to identify the nutritional needs of the soil in the plots of each of the cooperative’s members. This information provided accurate guidance about the inputs necessary to maximize the soil’s fertility while minimizing any potential negative impact – so increasing the productivity and improving the profitability of the cooperative members.
Targets
Carry out Supplier Code of Conduct audits with 33% of third-party suppliers
Completion: 2022
Status: Missed
Carry out Supplier Code of Conduct audits with 66% of third-party suppliers
Completion: 2023
Status: In progress
Carry out Supplier Code of Conduct audits with 100% of third-party suppliers
Completion: 2024
Status: In progress
New Targets
Carry Out Supplier Code of Conduct audits with 50% of third-party suppliers*
Completion: 2023
* The 2023 and 2024 targets are cumulative: 50% in 2023, plus 50% in 2024.
Carry Out Supplier Code of Conduct audits with 100% of third-party suppliers*
Completion: 2024
* The 2023 and 2024 targets are cumulative: 50% in 2023, plus 50% in 2024.
Increase fruit volumes sourced from third-party suppliers with FSA/SAI Silver or Gold level verification by 6% year on year
Completion: 2023 to 2027
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