PS5 Land Acquisition and Involuntary Resettlement is not applicable as no involuntary resettlement was identified during appraisal and future land leasing for sugarcane plantations will be under market-based transactions on existing agricultural areas.

PS7 Indigenous People and PS8 Cultural Heritage are not expected to apply to this project because no Indigenous People areas or cultural heritage sites were identified in the project area.   

 Sustainability is one of several pillars guiding Usina Sao Manoel’s corporate management system. The company’s long-term objectives include the adoption and implementation of appropriate environmental and social policies and efficient technologies, in alignment with the Company’s mission, vision and values. The company has prepared biannual sustainability reports since 2007 against the global reporting initiative (GRI) standard. This allows the company to transparently report on its sustainability performance. In 2009, the company prepared an environmental and social impact assessment (ESIA) for the expansion of its industrial operations to achieve milling capacity of 3,600,000 tons per year of sugarcane and to increase production of sugar, ethanol and dry yeast. Additional requirements stipulated by the local regulatory agency were included in the E&S management plans to ensure compliance with permit requirements and good industry practices. Nowadays, Sao Manoel has a milling capacity of 4,300,000 tons per year.

Environmental and Social Assessment and Management System

Sao Manoel has an integrated management system that includes quality, social, environment, food security, logistics, labor and occupational health aspects for agricultural and industrial operations. The system is based on international standards of ISO 9001, ISO 14001 and OHSAS 18001. Sao Manoel holds the following certifications and standards to meet customer requirements including BONSUCRO EU Production; Chain of Custody Standard; Food Safety System Certification 22000 (FSSC22000), GMP + B2; and the Green Ethanol Certificate issued by the State of Sao Paulo Secretariat of Environment.

Policy:

Sao Manoel has a written policy as part of the integrated management system which is endorsed by senior management and communicated to all employees. This policy states the company’s commitment to ensure: i) the satisfaction of its shareholders and clients; ii) protection of the environment through pollution prevention and compliance with regulatory requirements; iii) continuous improvement of performance; iv); protection of human rights; and v) direct, clear and efficient communication with internal and external stakeholders. The integrated ESMS policy is linked to specific objectives and targets with respective performance indicators.

Identification of Risks and Impacts

The process of identification of risks and impacts at Sao Manoel is the result of decades of detailed E&S analyses of company’s operations to identify necessary measures to eliminate or reduce risks. A supplemental objective is to identify needed improvements in efficiency and productivity. Identified E&S risks and impacts associated with Sao Manoel’s operations include generation of solid and liquid wastes, air emissions, use of natural resources including water, energy and soil; use of hazardous material including hydrocarbon fuels, pesticides, solvents, and acids; heavy equipment and vehicle traffic; and noise, odor, biodiversity loss and offset (as required by Brazilian Legal set-aside and permanent protected areas requirements); issues related to agrichemical exposure; OHS risk prevention and management; life and fire safety; neighboring and community engagement.

Performance deviations are corrected through implementation of action plans.  Corrective measures are immediately implemented and results monitored to ensure resolution of the previously identified issues.  The company also has a process of identification of social risks and impacts through the implementation of stakeholder engagement and community relations programs.

The company has also carried out a materiality assessment to identify areas of significant risks or importance to each corporate stakeholder. By focusing on these risks and corrective measures, the company is able to ensure that it is appropriately managing all material issues that are critical to the business.

Management Programs

Sao Manoel has developed and implemented E&S management programs to meet regulatory requirements; i.e., Plano Básico Ambiental (PBA, or Basic Environmental Plan), within the structure of a management system. The E&S programs have the objectives of protecting human health and the environment and of ensuring the sustainability of operations. The company’s E&S programs were developed based on the risks and impacts identified in the ESIA, conditions of the environmental licenses, Bonsucro certification and good industry practices. The management programs include procedures and establish performance indicators for community environmental education, community relations, traffic management, biodiversity (fauna and flora) groundwater and surface water resources, soil conservation, effluent quality, air emissions, solid wastes, application of vinasse, pesticides and fertilizers.

Organizational Capacity and Competency

Sao Manoel E&S functions are staffed by competent, experienced professionals who work in an integrated manner. Employees are guided by the principles of quality and continuous improvement. Sao Manoel’s environmental staff are assigned to the Department of Quality and Sustainability that functions closely with the occupational health and safety and the Human Resources division. These functions are managed by the Central Services Administration Department. Sao Manoel is a leader in sustainability in the Brazilian sugar and ethanol sector due to the implementation of E&S best practices and good E&S performance.

Emergency Preparedness and Response

The company has prepared an emergency response plan for the mill. The plan establishes internal organizational structures and responsibilities for crisis management and coordination of evacuation or other emergency efforts, and staff are trained in the plan and procedures, such as evacuation procedures, meeting points, and the like. Sources of potential risks and different scenarios are identified, and appropriate responses are sketched out, including activating and coordinating with local fire departments and/or first responders. Regularly scheduled emergency drills are conducted and the results of such drills are used to optimize emergency response procedures. In addition, it should be mentioned that Sao Manoel has engaged proactively in an effort to work closely with the local fire department in Botucatu. The company proactively promotes cooperation and coordination between Sao Manoel, the communities, and key authorities on these issues.

Sao Manoel has an emergency response team that is well trained to respond to emergency situations including wildfires in sugar plantations and fires or explosions in industrial facilities; and, occupational accidents. Industrial facilities are equipped with fire protection systems approved by local authorities. The emergency response teams are equipped with personnel protective equipment (PPE) and conduct regularly scheduled drills in coordination with the local fire department.

Monitoring and Reporting: Sao Manoel has a comprehensive monitoring and reporting program, which is the basis for Sao Manoel’s continuous improvement of operational efficiency and adequate environmental, social, health and safety performance.

The company monitors approximately 300 key performance indicators (KPIs) for all aspects of its operations.  Monitoring results are shared with management on a regular basis. The company also reports environmental compliance information to regulatory agencies. 

Information provided to environmental authorities includes completion of required actions imposed by environmental licenses to operate.  Information includes air emissions from boilers and the transport fleet; surface water quality; water use; compliance with Brazilian biodiversity set asides; and solid and hazardous wastes management.      

 Working Conditions and Management of Worker Relationship:

Sao Manoel workforce comprises approximately 2,100 permanent full-time workers. Approximately 82% of workforce is male and 18% female, which is consistent with the industry/sector. With mechanization of the planting and harvesting processes, cane cutters and other workers involved in heavy manual labor are no longer needed in significant numbers. As of 2017, approximately 100 migrant workers are engaged for the harvesting season.  The migrant workforce is hired from a small community in northern Minas Gerais and are housed in accommodation leased and managed by the company near Sao Manoel. Housing, toilettes and living quarters, including areas for recreation, are of good quality and provide workers with above average living conditions, compliant with PS2 guidance and requirements on worker accommodation. Sao Manoel reports that they expect the migrant workforce to remain at around 100 workers, and will report such number in the annual monitoring report that is submitted to IFC.

Training

Sao Manoel has training programs that include an EHS induction for new employees and contractors, as well as periodically repeated job-specific and regulatory trainings such as working at heights, working in confined spaces, electrical and pressure vessel safety, work as machine or boiler operators, handling and use of pesticides, equipment maintenance, etc. The company’s management strongly believes in training all employees and contractors to perform at the level that supports the company’s operational production goals.

Human Resources Policies and Procedures

The human resources (HR) management system includes a business code of conduct, specific policies and procedures that adhere to Brazilian legal requirements and PS 2 performance standards on labor and working conditions. Upon hiring, employees are asked to sign detailed contracts stipulating the terms and conditions of employment and agreeing to comply with the company’s code of conduct. Employees undergo an induction process and receive ongoing training throughout the time of employment.

The company has a low turnover of approximately 1%, thus end-of-employment formalities are infrequent and carried out in a transparent and orderly fashion. Time clocks are biometric and readily accessible to the workforce, and overtime is calculated and paid using this information. Sao Manoel provides a series of benefits that are aligned with legal requirements including health insurance, pension plan, transportation to and from work sites, vacation, subsidized meals, etc. Sao Manoel also offers a performance-based bonus scheme, which extends from corporate-level directors to operational staff. The company conducts surveys to ensure that employees’ salaries are consistent with the market and the region. Terms of employment are competitive and working conditions above average, lending to the company establishing a strong corporate culture focused on good performance and worker commitment to meeting the company’s production targets.

Workers’ Organization

Brazil is a signatory to numerous international conventions and treaties relevant to labor rights, including the International Labor Organization (ILO) Convention 87 on Freedom of Association and Protection of the Right to Organize. Under the national labor code, all employees have the right to freedom of association. Human resources policies and procedures state the employees’ right to freedom of association. Sao Manoel has signed agreements with the three approved unions for all company activities (i.e., rural, transportation, and industrial/admin workers), covering 100% of all staff. The company abides by the terms of employment negotiated under the collective bargaining agreements (CBA). CBA’s are reviewed and signed annually.

Non-discrimination and Equal Opportunity

Sao Manoel human resources policy and code of conduct include provisions on non-discrimination and equal opportunity. All employees and contractors are informed and trained on the company’s core values, rights and code of conduct at the time of induction. Approximately 18% of the workforce is female. In alignment with IFC’s goal to help clients become more gender inclusive, Sao Manoel will commit to reviewing the gender composition of its staff periodically with the intent of increasing the representation of women within the Company. Progress will be reported annually to IFC under the AMR.

Grievance Mechanism

Sao Manoel has a grievance mechanism through which workers may raise grievances and workplace concerns. The grievance mechanism includes clear procedures to receive, register, and address grievances. The mechanism is extensively communicated throughout the company. All grievances are recorded, processed, resolved and closed within an established timeframe, based on the nature and urgency of the complaint. As per Action 1 of the ESAP, Sao Manoel will include language in the mechanism allowing workers to raise complaints anonymously. The mechanism should not impede access to other judicial or administrative remedies that might be available under the law or through existing arbitration procedures, or substitute for grievance mechanisms provided through collective agreements, per PS 2 on Labor and Working Conditions.

Protecting the Work Force

Sao Manoel follows Brazilian regulations regarding minimum age and benefits. The company reviews the worker's age at time of application, recruitment, and contracting, in accordance with legal requirements to prevent child labor. The company hires young trainees whose ages range from 16-17, in accordance with the terms of the federal program named “Jovem Aprendiz” (young apprentice) training program. These programs receive oversight by the Ministry of Labor to ensure the company follows the labor requirements for young apprentices, including working hours, no overtime, no shifts and no hazardous work. The company provides employees all the rights and benefits under Brazilian labor laws to prevent forced labor.

Occupational Health and Safety

The company has procedures to promote safe working conditions, including OHS programs required under Brazilian labor laws. Main regulatory-driven OHS plans include risk prevention plans (PPRA in Portuguese), medical surveillance (PCMSO in Portuguese), emergency preparedness and response, personal protective equipment (PPE) program, and accidents/incident reporting and investigating procedure.

In line with good industry practices and in compliance with Brazilian occupational health and safety (OHS) requirements by the Ministry of Labor and Employment, Sao Manoel has established and implemented a robust OHS management system. The company has a strong OHS culture that focuses on identifying risks associated with all activities performed by the company and on providing tailored training to ensure that employees are aware of such risks and know how to prevent accidents in the work place.  In accordance with good practices, Sao Manoel OHS procedures focuses on eliminating the OHS risks by applying engineering controls or using less hazardous products. However, when residual risks remain, PPE are provided to workers along with proper training on how to use and maintain the PPE. All employees understand that their individual actions are part of the total quality and continuous improvement that result in a safer work place. Behavior-based safety works well at Sao Manoel leading to a low injury frequency rate that is aligned with industry benchmarks.

Sao Manoel has automated industrial processes that result in a small number of workers inside the operational area, which significantly reduces workers’ exposure to physical or chemical hazards associated with sugar and ethanol production.  In addition to adopting good industry practices and procedures to protect the workforce from risks associated with hazardous activities such as confined space, work at heights, hot work, lifting of heavy loads, electrical work, exposure to agricultural input-chemicals, the company is constantly seeking innovative ways to control and minimize risks to workers. Sao Manoel also conducts frequent inspections and scheduled maintenance to prevent equipment failure and to optimize equipment production. All activities considered hazardous (e.g., work at heights, confined space, electrical, welding/hot work) must obtain work permit from the OHS team to ensure all safety measures are in place, workers are properly equipped and trained, and working areas are clear prior to the start of any hazardous task.

In accordance with Brazilian requirements and good industry practices, Sao Manoel conducts medical examinations of employees at the moment of hiring, as needed by employees’ activities, and at termination of employment. Medical examination may include typical fit-to-work tests such as blood tests, blood pressure, lung capacity, audiometry, and blood tests for cholinesterase and leucocytes counting, depending on the job function and identified risks.

Field operations associated with sugarcane mills are also planned and executed with care to protect the worker’s health and the environment. Field staff have access to trailers with drinking and potable water, toilets, appropriate space for meals and break rests, and electronic time clocks in accordance with the NR31 (OHS norms for agricultural/forestry work). Since nearly all field operations are mechanized, field workforce consists mostly of highly qualified machine operators. Harvesting operations take place 24 hours in three shifts of 8 hours each. There is one hour of mandatory breaks for meals and two other mandatory breaks for personal needs in between.

Workers Engaged by Third Parties: Sao Manoel does not employ third-party contractors for services that are typically contracted such as transportation, housekeeping, maintenance, and security staff. For instance, the company’s drivers have been trained as mechanics so that they can repair and maintain their trucks during the period between harvests. When third-party workers are needed, for instance, to repair a piece of equipment under warranty, the contractor undergoes an EHS induction process upon their arrival to the site, and a work permit is granted for third-party workers engaged in hazardous work activities through the same OHS procedures used by Sao Manoel’s employees.

Supply Chain: Sao Manoel directly manages and controls 98% of its sugarcane production. Thus, only 2% of the total sugarcane crushed by the company is provided by suppliers, who are contractually required to follow the company’s sustainable and good industry practices. Suppliers are required to comply with Brazilian labor laws and regulations and OHS norms as part of the contract. In addition, suppliers need to hold environmental licenses and the CAR (Environmental Rural Register that requires the legal reserves [set-asides]), and management of hazardous wastes and empty containers of pesticides. Sao Manoel audits its suppliers to ensure compliance with all company and national requirements.

Energy and Material Efficiency Projects

Sao Manoel’s field operations utilizes modern equipment, GPS-based technologies and precision agriculture practices. By employing the latest generation of tools and technologies, combined with competent in-house staff, the company has many sustainability initiatives to minimize the use of chemicals and fuels to reduce the generation of wastes; thus, increasing the overall efficiency and sustainability of operations. 

Water

Sao Manoel’s sugarcane crops do not use traditional irrigation. The company relies on rainfall and applies vinasse through fertigation systems. Vinasse use helps to minimize the use of water and fertilizers.

Sao Manoel constructed a network of concrete-lined ditches and pipelines to transport the vinasse to its fields. This innovation leads to reduced soil compaction; and reduced consumption of diesel and gasoline; fewer emissions of greenhouse gases (GHG), and less use of fertilizers since vinasse is rich organics and potassium.

Water for sugar and ethanol mill and biogass production is obtained from surface water bodies and groundwater wells.  Permits for this activity were granted by Sao Paulo state.  Average water consumption per unit of production ranges from 0.6-0.7 m3/ton-cane.  This level of consumption is within the range of sector benchmarks and the guidance values cited in WBG-IFC EHS Guidelines for sugar production, 0.5-0.9 m3/ton-cane. 

Energy

Sao Manoel (SM) has a captive combined heat-and-power (CHP) plant used for internal consumption.  The CHP has a total capacity of 14.8 MW.  Sao Manoel’s CHP operates continuously during the production cycle, from April – November.  CHP equipment operates at an efficiency of around 80%.

Sao Manoel’s electricity consumption is 13.7 kWh/ton cane, below the Brazilian average of 14. Low electricity consumption is explained by the following practices: 1) the use of steam-driven mill knife cutters and hammer crushers; 2) all major electric motors are equipped with variable speed drives (VSD), and 3) a gravity-based vinasse transportation system instead of a pump-based one, resulting in zero-electricity consumption for the vinasse system.

Greenhouse Gas (GHG) Emissions:

CO2-equivalent emissions from San Manoel’s operations exceed IFC’s PS3 25,000 tonnes threshold requirement for monitoring and reporting GHG.  Considering that most emissions of GHG result from renewable energy generated from biomass (bagasse), the CO2-equivalent emissions are neutral as they are captured from the atmosphere by growing sugarcane plants. In addition, the ethanol produced by San Manoel is used as a biofuel in the national vehicle fleet. The company also applies good practices to reduce the use of fossil fuel consumption and that of fertilizers.

Air Emissions and Ambient Air Quality: The main source of air emissions from the San Manoel’s operation are associated with the CHP. The company, in alignment with good practices and requirements of environmental agencies, does not burn sugarcane in the fields.

CHP air emissions are monitored once a year, as required by environmental agencies and include the monitoring of nitrogen oxides (NOx) and particulate matter (PM). The results of annual air emissions for NOX and PM indicate compliance with national standards of 350 and 450 mg/Nm3, respectively, and with the World Bank Group’s General EHS Guidelines values of 650 mg/Nm3 for NOx.

Reported concentrations of PM ranged from 139 to 212 mg/Nm3 which are above World Bank General EHS Guidelines values for PM. PM and NOx are currently emitted from 4 stacks, corresponding to boilers 3, 4, 5 and 6. The company will replace the three short stacks (22-meter each) for boilers 3, 4, and 5, with a single 75-meter high stack. This is a requirement by the State of Sao Paulo Environmental Agency, CETESB, to meet air quality standards and will be operational by April 30, 2020. This replacement will not involve any changes to boilers 3, 4, and 5 or their associated air emission control technologies. These may be changed at a future time when the company decides to update its CHP system.

Regarding ambient air quality, air dispersion models were conducted in 2015 to assess potential impacts from current and future emissions to ensure compliance with the new Sao Paulo State ambient air quality standards. Actual air emission measurements of PM and NOx were used in air dispersion modeling.  However, site-specific meteorological data were not used.  As per Action 2 of the ESAP, Sao Manoel will conduct air dispersion modelling using AERMOD and site-specific meteorological data from nearby meteorological stations. Based on the results of the AERMOD model, the company will make adjustments, as needed, to ensure compliance with the new State of Sao Paulo ambient air quality standards for NOx and PM, which are aligned with those of the IFC guidance values. In addition, as par Action 3 of the ESAP, Sao Manoel will develop and implement an ambient air quality monitoring program consistent with good international practices and IFC-World Bank Group EHS Guidelines to confirm actual ambient air quality in the general area of the project and confirm compliance with ambient air quality from the State of Sao Paulo and IFC guidance values for PM and NOx.

Wastewater Treatment

All wastewater streams generated at Sao Manoel, including sanitary, process effluent, thermal, equipment maintenance and others are collected and sent to the wastewater treatment plant. Treated effluents are stored in two ponds for reuse. Although the company does not discharge treated effluent to surface water bodies, the efficiency of the WWTP and the quality of treated effluents comply with Brazilian standards and IFC guidance values.

Solid Waste Management

San Manoel has developed and implemented a solid waste management plan that is compliant with national requirements and consistent with good industry practices. Solid wastes are segregated in accordance with their characteristics and reused or recycled to the extent possible. Solid wastes that cannot be recycled are disposed of at licensed facilities.

There is a strong emphasis on minimizing and reusing and recycling wastes. The company leaves sugarcane residues in the field to decompose and improve soil carbon quality and to minimize soil erosion. Fly ash from biomass cogeneration is used to produce compost.  Recyclable wastes including plastic, cardboard, big bags, used oil, tires, and metal scrap are sold. Hazardous wastes including medical waste, used PPE, and rags are disposed at authorized facilities. Domestic wastes are disposed at authorized municipal landfills. Empty pesticide containers are returned to distributors.

Hazardous Materials

Sugar and ethanol production requires the storage and use of hazardous substances including caustic soda, sulfur acid, diesel, and pesticides. Chemical storage areas were constructed in accordance with good industry practices that included paved floors, secondary containment, spill kits, and emergency showers. The central warehouse where pesticides are stored has impervious floors, ventilation, warning signs, and the area can be only accessed by authorized personnel who have been trained in the handling of pesticides. Overall, the company manages hazardous materials in alignment with good industry practices.

Integrated Pest Management.  Sao Manoel maintains a robust preventive program with drones, high-resolution satellite imagery, and frequent field inspections to identify areas of weed infestation or low biomass. These measures allow the company to identify areas that require more attention and to develop proactive, integrated, site-specific solutions on a small scale, thereby reducing the use of chemical substances. The company gives priority to biological controls. 

Some 40 varieties of sugarcane are selected according to various criteria to increase the yield of sugarcane per hectare.

San Manoel also monitors pests through traps and visual inspections. The company does not use WHO Class Ia, highly hazardous, nor Class Ib, highly hazardous pesticides.  

The company does not employ aerial application of pesticide.  Chemical applications are conducted in accordance with good practices, including the use of real-time meteorological data on wind direction and velocity for equipment operators with data to comply with company criteria including wind velocities <18 km/h and favorable temperature and humidity conditions.  Pesticide formulations are based on tests that dictate what is needed for each field. Equipment used in the application of pesticides has GPS for application precision and equipment to control the flow of products applied.         

 Community Health and Safety

Sao Manoel started operations in 1949. The company has maintained close ties to the community during decades of operations and many employees have worked at Sao Manoel for decades and some are second or third generation of family members. Sao Manoel represents the largest company in the Municipality of Sao Manuel, which is located approximately 7 km from the sugar mill. The major adverse impact on local communities stem from truck traffic involved in the transportation of sugarcane from the plantations to the mill and transportation of sugar and ethanol from the mill to distribution centers. To address this issue, Sao Manoel has put in place a series of measures including GPS trackers on company vehicles, awareness among the workforce, third-party drivers, and the general public about traffic safety, and maintenance of access roads within the sugarcane fields. To minimize the number of truck-loads of sugarcane, the company acquired powerful equipment that can carry 3 truck-loads on each trip, with capacity to transport up to 120 tons of sugarcane per trip. In addition, 80% of sugarcane transported from the fields to the mill utilize internal access roads (avoiding public roads), covering average distances of 23 km.

Infrastructure and Equipment Design and Safety

Sao Manoel’s mill is located within an industrial area, duly secured to prevent access to the community. Whereas sources of potential risk such as boilers and inflammable substances (e.g. ethanol) exist, the severity of any impacts to communities is greatly reduced, if not entirely eliminated, due to the distance to such populations. In addition, the use of recent technology at the facilities and frequent monitoring and testing of equipment, as required by local environmental authorities, further mitigate such risks to community safety.

Security Personnel

Sao Manoel’ security forces consist of full-time employees who have been fully trained on human rights and community relations and work as unarmed guards for access control, surveillance, and the like. There have been neither complaints from communities or other stakeholders nor indications of problems regarding the conduct of the company’s security personnel.    

 Protection and Conservation of Habitats

Sao Manoel’s sugarcane plantations are located exclusively on areas traditionally used for agriculture, and no direct conversion of natural habitats to farm lands or significant loss of biodiversity is expected from the company’s current or future operations.

Brazilian farmers are required to set aside lands as biodiversity conservation areas and to protect riparian vegetation alongside surface water bodies. Where the riparian vegetation has been suppressed, efforts must be implemented for the restoration of such vegetation. Property owners may opt to acquire lands with good native vegetation cover, outside of their agricultural land, as set-aside land for biodiversity conversation, which sometimes leads to the creation of good ecological corridors. During Sao Manoel’s environmental assessment for location of new farms, landowners must show proof that the mandatory biodiversity set-aside lands have been designated and adhered to the rural environmental register (Cadastro Ambiental Rural - CAR, in Portuguese) and to subsequently adhere to the State of Sao Paulo’ s Programa de Regularização Ambiental (PRA, Program of Environmental Compliance), as needed. Although Sao Manoel may help property owners understand the CAR registration process, it is the property owners’ responsibility to register their property and adhere to the state’s PRA. Non-compliance with this requirement may result in legal actions by the government such as fines. Currently, 97% of all leased lands have CAR and the remaining 3% are in the process of legalizing their farms to comply with this requirement. One hundred percent of the land owned by Sao Manoel have CAR and the company currently has 15% of its land set-aside. The company has plans to purchase a property to complete its set-aside commitments under the new forestry code. As per Action 4 of the ESAP, the company will ensure that all currently leased and future leased properties will comply with the deadline for filling the CAR, which is set for May 31, 2018, and adhere to the State of Sao Paulo’s PRA. As per Action 5 of the ESAP, the Company will also demonstrate full compliance of owned properties with set-aside requirements.

Sustainable Management of Living Natural Resources

IFC observed good planning and environmental initiatives that demonstrate Sao Manoel’s efforts to remain a leader in the sugar/ethanol sector. The company does not promote conversion of natural habitat to farm land and currently focuses on improving tonnage of sugarcane per hectare.

In general, Sao Manoel manages its sugarcane operations in a sustainable manner following the good industry practices defined in the Bonsucro standard for sugarcane production. Performance indicators for Sao Manoel’s operations show excellent efficiency in energy and water consumption and good reuse/recycle of natural resources.

Supply Chain: No conversion of natural or critical habitats is expected from Sao Manoel’s suppliers because the area is already modified and has been used as farm land for decades. Sao Manoel’s suppliers account for only 2% of the total company’s sugarcane needs. The company conducts audits of all suppliers to ensure compliance with the company’s procedures, certification standards and sustainability principles.

 External Communications and Grievance Mechanisms

Stakeholder engagement is core to the company’s sustainability strategy. Sao Manoel carries out annual assessments, by stakeholder group, to understand the most critical risks affecting its business. This allows the company to prioritize the mitigation of risks, in a strategic manner.

The company uses a number of channels to communicate with external stakeholders. Through the company’s website, www.saomanoel.com.br/contato, e-mails can be sent to various departments. In the same website, external stakeholders can access institutional information relevant to how the company manages its business, including its biannual sustainability reports, which include benchmarking against the GRI indicators.

Because of its long presence in the region and the strong sense of social responsibility held by management of the company, Sao Manoel is a well-known and respected company in the Municipality of Sao Manuel, with strong ties to the local communities from where it sources the majority of its workforce. The company understands that their relationship with their employees (workforce) is critical to the success and growth of the business. The company has been running a number of social programs successfully since 2007. Programs provide a range of assistance and support to target groups ranging from internships and educational support to students to gestational and parenting skills to new parents. Programs are designed to tackle pressing social issues in the local community and are implemented alongside local partners. For instance, Sao Manoel provides sponsors and supports ‘Casa Santa Maria’, a home for low income children legally separated from their families due to neglect or abuse. By sponsoring Casa Santa Maria, Sao Manoel helps provide child protection services that include food, shelter and education to children. The center also serves as an after school safe place for children in the community of Santa Monica. Casa Santa Maria also serves as a training center for mothers who need to learn skills such as sewing, crafts, etc.

Another important social program sponsored by Sao Manoel is the restoration of the old railroad station in the city of Sao Manoel. Upon being restored, the center will serve as a place for cultural events such as art exhibits, shows, and conventions for the community. Other important social programs that have positive impacts on the communities include the program to the retirement home “Amigos da Pousada da Colina” where the elderly learn craft, plant herbs/vegetables and other skills that maintain them engaged and active members of society. The company also has programs to help pregnant women, youth in need of trainee opportunities, motivate young students in secondary school, besides multiple partnerships with the local municipalities, schools, religious hospitals, etc. Overall, Sao Manoel has a clear commitment to the community and is a positive force to bring change and opportunities while creating strong relations within the local communities.

  Silvio Nicoletti – Financial Director

Usina Acucareira Sao Manoel S.A.

Phone: +55 14 3812 1140

E-mail: slnicoletti@saomanoel.com.be

Address: Fazenda Boa Vista, Cx. Postal 127, Sao Manuel – SP, CEP 18650-000