Sustainability Report - We contribute to sustainable development in our country creating value in all our relationships. www.racafe.com
Who we are We are one of the main coffee traders in Colombia, dedicated to the purchase, milling, trading and product development of green coffee. We support responsible consumption of coffee by integrating sustainability principles in our that guide our decisions and contribute to the improved performance of our organization. Where we operate and where we sell our coffee BUENAVENTURA SANTA MARTA CARTAGENA BUCARAMANGA MEDELLIN PEREIRA ARMENIA BOGOTA NEIVA POPAYAN Evaluated and certified by ECOCERT 26000 under ISO 26000, the international standard on CSR ECONOMIC ASPECTS SOCIAL ASPECTS ENVIRONMENTAL ASPECTS 64 years of experience in the market 8 MILLING PLANTS Coffee bags sold (60 kg) 1,541,670 1,505,445 Producers in the direct trade network 3,521 5,029 Employees COLOMBIA 33% 28% Certified and verified producers EXPORTED 67% 72% 1,139 2,463 84 90 122 130 ENERGY consumption per bag of coffee 4.39 (Kwh year/bag) 3.98 (Kwh year/bag) International CLIENTS launched the Center for Creation and Development of Products 3/37 Global 98 Reached 108 91 MARKET ports share 39 1.78% 41 98 ports 1.51% Number of bags sold from regional programs and direct relation, certified and verified 210,859 bags (60 kg) 368,661 bags (60 kg) 235 218 in Countries Municipalities in Colombia Bonuses paid over differentiated coffee We buy in 9,540 million COP 10,479 million COP Greenhouse gases (GHG) emission 2.4 Kg CO 2 - e / bag 2.3 Kg CO 2 - e / bag Clients in Colombia Local associations and/or intermediary groups 182 186 24 36 Coffee contribution collection Dispatched TRUCKS (35 ton) 1,660 1,814 Participation in the Colombian MARKET 10.8% 10.6% Trained producers 381 1,457 25,276 million COP 25,534 million COP 2,299 million COP ENVIRONMENTAL INVESTING -
We promote differentiated coffee trading We promote sustainability in the supply chain through the fulfillment of the following standards: CERTIFICATES WITH PRODUCT LABELS VERIFICATION OF SUPPLY CHAINS SOCIAL RESPONSIBILITY AND GOOD BUSINESS PRACTICES Cedex TRADED PRODUCTS Certified and verified coffees Coffees from regional programs and from direct relations Conventional coffees 4C C.A.F.E. Practices Rainforest Alliance UTZ Certified Fairtrade ECOCERT Regional coffee Farm coffee Special coffee per cup Consumo and Pasilla (traditional lower grades) Excelso for export New Product of Colombia qualitities Number of bags sold (60 kg) 175,376 331,252 35,483 37,409 1,330,811 1,136,784 1,505,445 coffee bags sold by Sustainability We issued the sustainability report for the period - following the GRI (Global Reporting Initiative) methodology. We identified the key issues for our stakeholders and the organization. As a result, we present the materiality matrix. Relevance for interest groups LOW MEDIUM HIGH Materiality matrix LOW MEDIUM Importance for the organization MATERIAL TOPICS Product quality Economic performance Involvement with the producers Health and safety of the collaborators and contractors Waste Company-worker relationship Use and efficient saving of energy Good Corporate Governance Relationship with suppliers and contractors Atmospheric emissions and noise HIGH Relevant topics related to sustainability in the following areas: SOCIAL ECONOMIC ENVIRONMENTAL
Contribution to the Sustainable Development Goals We have incorporated the 11 principles of our sustainability policy. At the same time, we identified the contribution of our projects in the Sustainable Development objectives, actions and achievements. In addition, during the years and, we worked to respond to the material issues that create value in the relationship with our groups of interest. SUSTAINABILITY POLICY PRINCIPLE MATERIAL SUBJECT SDG CONTRIBUTION Integration of sustainability (shifting towards the whole value chain) Strategy and procurement policies Responsible local purchases We promoted sustainable agriculture. We increased the number of certified and verified producers, 1,139 for and 2,463 for. We provided training in the supply chain for the respect of human rights to eradicate practices such as forced or child labor and led actions to adapt to climate change. We trained a total of 1,457 farmers in. Creation of value for the communities in which we operate Involvement with producers We are oriented toward a model of inclusive business to reduce poverty, while maintaining the economic viability of the company. We distributed 96% of the economic value generated in the and 97% in. We train farmers in good agricultural practices and in the standards they can apply into actions for the development of sustainability in the coffee sector. Training reflected an increase of 24% compared to the previous year. We contribute to the economic development of communities and conduct fair and timely payments to producers. There was a 10% increase from to, of the bonuses paid for differentiated coffees to producers. Ethics and responsibility in business Transparency in communication and accountability Good corporate governance Fight against corruption We guide our conduct and actions through the core values. We developed the second sustainability report, following the GRI methodology. We established strategies to develop partnerships with other actors. We implemented rules that mitigate fraud with our SIGRACAFE system. We ensure the transparency of our operations. We launched our ethics line in and trained 100% of our collaborators. We adopted the BASC standards for the verification of our suppliers. We received a recognition in the year from the Colombian American Chamber of Commerce AMCHAM for our stated commitment to transparency and the fight against corruption. Financial strength and long-term approach Economic performance We innovated and developed actions of optimization with sustainability criteria. We invested 2,034 million COP in new optical sorting machines with the latest new technology. We give priority to the allocation of economic resources in accordance with our long-term vision. Between the period - we conducted total investments in infrastructure and new technologies for a value of 6,592 million COP.
Dialog with interest groups Relations with suppliers and contractors We cooperate in the sustainable development of the local economy. We increased our network of direct marketing, from 3,512 producers in to 5,029 producers for. We provide knowledge in our supply chain. We implemented the first phase for the improvement of coffee drying with 21 producers. Good labor practices Health and Safety of its employees and contractors We promote health and safety in the workplace, assigning a budget of 200 million COP. Good labor practices Respect for fundamental human rights Workercompany relationship Diversity and equality We provide our collaborators the opportunity to develop their careers under equal conditions. We acknowledge the work of our partners by providing benefits. During our company awarded 1,536 million COP and during, 1,595 million COP. Good labor practices Professional development Training and employee training 80% of our collaborators received regular assessments of their performance and professional development. Through the Seedlings Plan we trained new generations. 2 managers of milling plants became part of this training plan. We promoted professional development among our staff. We provided education benefits for 425 million COP during and 438 million COP during. Customer service Innovation Product quality We increased the number of certified and verified coffee from regional programs and direct relationships by 75%, during. In we opened the Center for Development and Creation of Products 3-37, as a space of constant learning for our clients, and for the creation, research and development of our products. Caring and commitment with the environment Waste We make proper of solid waste in each one of the milling plants. Caring and commitment with the environment Savings and efficient use of energy Decreased by 9.3% the consumption of energy per bag of milled coffee. In we signed a project contract for photovoltaic energy. We maintained the environmental system and developed mitigation and prevention strategies. We conducted environmental investments for 2,299 million COP for the period -. Caring and commitment with the environment Atmospheric emissions and noise We measured the carbon footprint of our organization to establish goals and implement strategies to reduce CO2 emissions for the short and long term. We incorporated new technologies that improve energy efficiency in the process. We invested in machinery, 526 million COP during and 3,081 million COP during. We began operations in the new Neiva milling plant during. Caring and commitment with the environment Biodiversity Land use We carried out training with producers to preserve the natural conditions of their environment. We promoted the fight against climate change and the proper use of resources throughout our supply chain. We donated 2,149 trees to the community in.
We create value We are a bridge between Colombian producers and the coffee industry around the world. Through the various activities derived from our direct relationship with producers and customers, we are responding to their interests and expectations. Before a globalized market, our greatest contribution to the supply chain is the integration and establishment of a relationship between Colombian coffee producers and the national and international coffee industry. Our operations We are green coffee traders PRODUCERS PURCHASE MILLING PARCHMENT COFFEE RECEIPT Batch assignment Milling order Sending samples INDUSTRIAL PROCESS IN THE MILLING PLANT Dispatch instruction TRADING We have the capacity to offer from 1 to more than 1,5 MILLION bags per year, tailor-made to our clients needs TRANSPORT Boarding instruction DELIVERY AT FOB PORT DELIVERY AT CLIENT S PLANT Boarding notice RECEIPT FROM CLIENT Commercial transaction
Generated economic value Based on the commitment that we have within the supply chain we continue to grow our business supported by our processes of risk, internal control, and the adoption of International Financial Reporting Standards (IFRS). GENERATED, DISTRIBUTED AND RETAINED ECONOMIC VALUE ECONOMIC VALUE * Generated Distributed Retained 100% $816,212 99.47% $811,859 0.53% $4,353 100% $829,801 99.52% $825,796 0.48% $4,005 DISTRIBUTED ECONOMIC VALUE * WE SHARE OUR PROGRESS Operational costs $781,253 $794,734 Collaborators salaries and benefits $15,741 $16,227 Payments to capital providers $7,422 $6,865 Government taxes $6,599 $6,896 Investment in the community $844 $1,074 * Data in COP million For the year we maintained an increase of the generated and distributed economic value, thus contributing to the profitability of our business and the growth of our collaborators, producers and other actors in the value chain. Commitments Sustainable development Continue to expand the participation of different interest groups through relationships building. Reduce the consumption of energy in the milling plant per bag by 5%. Prioritize and align all sustainable development goals (SDGS). Reduce and offset greenhouse gases emissions by 5%. Manage the sustainable mobility project in Racafé s main office. Manage 1 project for energy generation and energy efficiency. Commercial logistics Development and consolidation of "cross-docking" project with a budget of 7 days storage. Increase the efficiency percentage in freight, to a value between 88% and 93%. Trading development of new exportable coffee qualities. Build new origin coffee programs.
Producers in the supply chain Increase support with producers in the improvement of the drying process, with at least 30 solar drying modules. Continue with the implementation of voluntary standards of sustainability. Reach at least 50% of the producer s network. Identify and promote at least 10 sources with potential for differentiated coffee production. Increase the bonuses paid for differentiated coffees. Human talent Implement measurement models that will make it possible to monitor the mobilization process productivity in the milling plants. Develop a Seedlings Plan to ensure the competence of at least 3 collaborators who could replace the manager of each milling plant when they retire. Implement teamwork workshops in the milling plant. Develop a training plan geared towards the core competencies of each job. Health and safety at work Implement the safety and health system at work on the basis of continuous improvement in 100% of the branches of the Company. Implement a program of accident control to decrease by 50% risk events caused by storage. Quality and product development Strengthen good manufacturing practices and improving processes to ensure food safety conditions in coffee. Implement the rules of the "Food Safety Modernization Act" - FSMA. Economic - financial Financial strength. Competitiveness of resources. Continue with profits growth through greater differentiation. Keep the strategy to minimize financial risks and ensure the financial sustainability in the long term. Increase the production capacity of the milling plants reaching the goal of 150 bags/hour, through the improvement of processes. Risk and internal control Maintain our relations with the customers and suppliers that evidence good behavior in Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT), guided by BASC rules. Obtain the certificate of Authorized Economic Operator, in order to strengthen the confidence and security of our company within the supply chain, being internationally recognized. Report the follow-up results of the cases reported in the ethical line.