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Our continuous commitment to reporting on the sustainability of Valagro: the Sustainability Report 2017


Sustainability continues to be the distinctive feature of Valagro's history, and above all, as we hope to illustrate with this publication, a strategic and operational guideline that orients the work of all corporate functions.

The relationship between sustainability and production systems is the subject of great concern for some major international institutions such as FAO.

According to the Report The future of food and agriculture: Trends and challenges (FAO, 2017) by 2050 it is expected that the world's population will probably reach almost 10 billion people and that this demographic increase will increase world agricultural demand by 50% compared with current levels, intensifying pressure on natural resources, which are already overused.

The increase in production needed to meet this growing food demand will have to come mainly from increased productivity and increased resource efficiency, given the limited ability to expand agricultural use of land and water resources. Furthermore, climate change will increasingly influence food production through increased variability in rainfall and increased frequency of drought and flood.

Finally, the report concludes that "agricultural production systems that require intensive use of inputs and resources, which have caused massive deforestation, water scarcity, soil depletion and high levels of greenhouse gas emissions, cannot provide sustainable farming and production".
It is the light of this framework that Valagro must commit itself, year after year, to improving its exclusive formula for sustainability – a formula that combines the sustainability of its range of services (made of increasingly innovative and effective solutions for sustainable agriculture today and tomorrow), the sustainability of production processes that combine the value of people with commitment to safety, and the environment and innovation with a focus on the customer.

And with this spirit, starting from this edition of the Sustainability Report, we have embarked on a path of progressive compliance with international standards dictated by the Global Reporting Initiative (GRI) for which I invite you to read the methodological note on the sidelines of this premise.
This innovation is an integral part of our commitment to sharing and transparency, because it provides us with objective support to best relate to the whole community, as is the purpose of this report.


Ottorino La Rocca
Chairman of Valagro
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Methodological note


GRI is an independent international organisation that has pioneered sustainability reporting since 1997

In line with the commitment to transparency and sharing that guide the drafting of the Sustainability Report, we wanted to embark on a progressive alignment with GRI Sustainability Reporting standards, using the G4 GRI guidelines that communicate the impact of business activities from a social, environmental and economic point of view.

The choice of this standard arises from the will to equip ourselves with an internationally recognised tool possessing the specific characteristics of comparability, accuracy, clarity, timeliness and reliability.
To highlight this path, the reader will find in the publication the indicators provided by the different business functions expressly specified based on the availability of information required by the standard.

These indicators are as follows:

Category: ENVIRONMENTAL

G4-EN1 Disclosure
G4-EN2 Disclosure
G4-EN3 Disclosure
G4-EN5 Disclosure
G4-EN8 Disclosure
G4-EN9 Disclosure
G4-EN10 Disclosure
G4-EN15 Disclosure
G4-EN16 Disclosure
G4-EN17 Disclosure
G4-EN18 Disclosure
G4-EN21 Disclosure
G4-EN22 Disclosure
G4-EN23 Disclosure
G4-EN25 Disclosure
G4-EN29 Disclosure
G4-EN31 Disclosure

Category: SOCIAL - LABOR PRACTICES AND DECENT WORK

G4-LA1 Disclosure
G4-LA6 Disclosure
G4-LA12 Disclosure

Category: ECONOMIC

G4-EC1 Disclosure
G4-EC3 Disclosure
G4-EC9 Disclosure

Category: SOCIETY

G4-SO6 Disclosure
G4-SO8 Disclosure

Category: PRODUCT RESPONSIBILITY

G4-PR4 Disclosure
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Business development: an increasingly global identity


In 2016, the Valagro Group set out on a path towards progressively asserting itself as a benchmark global player in the Biologicals sector, a product category capable of satisfying more and more sustainable and integrated farmers' needs, which includes not only biostimulants, but also biofertilisers and biocontrol.

Our key product
categories
50%
30%
14%
4%
2%
Expressing this path is, above all, the complete integration of SRIBIO and the opening of the subsidiary in China, Valagro (Shanghai) Trading Co. Ltd., which marks a decisive step forward in the progressive internationalisation of the business.
Also making a contribution is start of the operational phase for the construction of the Pirassununga plant, in the state of São Paulo, Brazil.
But it is above all the capital investment for growth received from Metalmark Capital, an American private equity fund with experience in the agri-food industry, which has marked a significant point in growth of the business. In fact, thanks to the proceeds of this investment, the company will be able to finance initiatives aimed at organic growth in some strategic markets, such as biostimulants and biocontrol, and expand its range of tailor-made solutions for agricultural producers. With this investment - the first by an institutional investor in Valagro - Metalmark has acquired a minority stake in the Valagro Group, thus becoming a long-term strategic partner for the company's new phase of growth.
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The company and the commitment to community development


2016 is a year marked by continuity in terms of Valagro's commitment to the growth and well-being of the territory.
This is an aspect that emerges, for example, from the continuity with which the company addresses suppliers from the local community.

201420152016
Calculate the percentages based on invoices or commitments made during the reporting period37%34%34%
This responsibility is also evident in the choice to continue to support the work of numerous associations and local authorities in 2016 as well, so that they are able to carry out various initiatives in the field of sport, art and the protection of territorial identity, for the benefit of the whole community.

Furthermore, it is in this spirit that the company has continued to engage in the promotion of art alongside the Fondazione Industriale Adriatica - ARIA: in particular, in 2016, Valagro supported implementation of the artistic project "No Man's Land". In the negative sense that distinguishes it (land of no one, land without rules), the new artistic project supported by Valagro together with the ARIA Foundation promotes a positive and inclusive meaning: erase the idea of property, transform a private good into a common good, according to an eco-sustainable path that returns the site to itself. The project grew from significant collaboration with the artists, Cecilia Casorati, artistic director of the Foundation, the Zerynthia Association and Mario Pieroni, who donated the land for the largest installation ever created by Friedman, a French-Hungarian artist and architect born in 1923, a visionary and original thinker whose considerations have become a point of reference for contemporary culture over time.

Commitment to the world of culture is accompanied by constant attention to the world of education: in 2016 the company's headquarters welcomed more than 150 students from local educational institutions (6 in total), hosting training sessions to illustrate the Group's activities, mission and innovation.

Finally, besides the commitment to the local community, it is important to remember the cooperation with non-profit organisations for humanitarian purposes. In 2016, Valagro continued to renew the distance adoptions promoted by Terres des Hommes within the Familia project, aimed at protecting and welcoming children from families in difficulty in developing countries.