Biorigin publishes 7th Sustainability Report with emphasis on transformations and results that increase the company's competitiveness and profitability

The report shows the results of 18/19 and 19/20 crops, indicating our respect for the natural resources, the care for people, and the quality of our products

Zilor/ Biorigin’s highlights in the last biennium:

  1. 2% growth in the amount of crushed sugarcane when comparing the 2018/2019 and 2019/2020 harvests, achieving an increase in sugar production (+18.1%) and ethanol production (+5.3%) and in electric energy exports (+12.2%).
  2. In the 2019/2020 crop, 511 thousand MWh of electricity were exported, enough clean energy to light up a city with more than 500,000 inhabitants for a year.
  3. 13% less water relative consumption (m3/ ton of crushed cane) in 2019/2020 crop compared to 2018/2019 crop
  4. In the last two years, it invested R$ 3.6 million in restoration programs and planted more than 332 thousand seedlings, reforesting 195.4 hectares.
  5. The company held almost 140 thousand hours of training for our employees, mainly for the development of leadership skills, the strengthening of safety culture and operational excellence.
  6. In the 2019/2020 harvest, there was an 81% reduction in the rate of accidents with lost time compared to the 2017/2018 harvest.
  7. It has invested more than R$ 8 million in social projects in the communities, impacting around 800 students from the Brazilian cities of Lençóis Paulista, Macatuba and Quatá.
  8. Net revenue grew by about 15% between the two harvests, reflecting the gains in efficiency and productivity achieved from the various projects of operational excellence, technological development and risk management.

Lençóis Paulista, June 25, 2020 - One of the main producers of sugar, electricity, ethanol, and natural ingredients in Brazilsince 1946, Zilor has been transforming itself every crop year. Sustainability is part of its DNA, from the cultivation of sugarcane to the final product, as well as the pursuit for productivity, efficiency, and innovation.

The 7th edition of our Sustainability Report shows results that renew the organizational culture, reinforcing values such as integrity, safety, and the accomplishment ability of their teams. In the last two-year period, the company has evolved in all aspects that increase the business competitiveness and profitability.

With solid governance, efficient risk management, and qualified professionals who are aware of their responsibility, Zilor and Biorigin have matured the management systems and successfully concluded the company's financial restructuring, with important results that confirm the effectiveness of their strategy.

Business’ Sustainability

In the last two-year period, Zilor achieved expressive productivity and efficiency rates. The agricultural area increased its productivity, and the milling of sugarcane increased by 9.2% in the 2019/2020 crop. This growth was reflected in 18.1% higher volume of sugar and 5.3% higher volume of ethanol produced, and 12.2% of electricity exported, in comparison with the previous period. The total production was 889 thousand tons of sugar, 1,034 thousand cubic meters of ethanol, 965 thousand MWh of clean electric energy, and with Biorigin produced 82.8 thousand tons of natural ingredients.

These results were achieved with the support of the Agricultural Partners, responsible for 70% of Zilor's sugarcane cultivation area. The Agricultural Partnerships, a pioneering model implemented by Zilor in operation for more than 20 years, allows Partners to be responsible for the cultivation and harvesting of sugarcane in part of Zilor's own areas or leased by the company, which contribute even more to the generation of jobs and income in the regions where we operate.

One of the highlights of our performance model in the last two-year period was the Bonsucro certification of 13 Agricultural Partners. As a result, we now have the second largest certified cultivated area in the world, located at São José unit (Macatuba-SP), according to the international entity and main certification for the sugar-energy sector that guarantees the social and environmental responsibility of sugarcane producers, required by customers in Brazil and abroad.

Among the advances, we also highlight the 81% reduction in the frequency of accidents resulting in accident leave, which reflects the investments made in leadership training, and the strengthening of management systems. It also demonstrates everyone's commitment to safety in our activities to achieve the objective of zero accident at our units.

Natural Ingredients Market

Biorigin, Zilor's business unit, is relevant to the company's strategic diversification. The unit produces natural ingredients to enhance flavor, increase conservation, and add nutritional features. It provides more tasty and healthier foods to the population, and nutritionally enriching diets that improve health, performance, and the care for farm animals and pets in our homes.

One of Biorigin's differentials is the traceability of the entire supply chain, starting with the raw material used in the production of yeast by Zilor itself to the final product.

In addition to the highlights in the production volume, of 82.8 tons of natural ingredients, the achievement of ISO14001 certification for the Environmental Management System also demonstrates the business unit's commitment to its entire production chain.

With efficiency on industrial assets, the company deliver quality and safe products in more than 60 countries and, in the last two-year period, it has expanded itsr market presence in the United States, Europe, Latin America, and Asia.

For Biorigin's CEO, Emerson Vasconcelos, the objective is to be increasingly competitive and expand the creation of value, with a legacy of sustainability and responsibility in the production processes: “Covid-19 pandemic highlighted the importance of the food industry for the security of global society. We, at Biorigin, are part of this chain by offering innovative and natural products for human food and animal nutrition, promoting health and well-being. We are on the right path to continue growing, contributing to a more sustainable world”, he highlights.

Current perspectives and challenges

Despite the current challenges due to the coronavirus pandemic, the prospects for ethanol in Brazil remain positive, mainly due to the entry into force of RenovaBio, a public policy that encourages the decarbonization of the Brazilian energy matrix. Zilor was one of the first companies in the country to receive certification for the issuance of decarbonization credits, CBIOs, which motivates the company  to continue looking for solutions to increase the energy efficiency of our production processes.

Its products have increasingly stood out as essential. Ethanol has significant environmental gains for the reduction of greenhouse gas emissions and pollution in urban centers. Electric energy from biomass contributes to expanding the presence of renewable sources in the Brazilian matrix. And sugar, with a balanced use, is an important source of energy in people's diets.

For Zilor's CEO, Fabiano José Zillo, the results presented in the two-year period were positive, however, maximum efficiency will be even more important from now on. “We have experienced an intense process of restructuring and maturing in the last two crops. We need to remain focused on reducing costs, training our teams, on diversity of people and ideas, and on developing activities to remain competitive and position ourselves as a sector’s reference in productivity, efficiency, and results”, he points out.

Fabiano also highlights that “the commitment to a sustainable productive model will remain a priority and will increasingly be the basis for the results we will achieve in the society that will emerge after the pandemic”.

Zilor and Biorigin will continue to work towards a balance between generating important results for shareholders, caring for the environment, and contributing to the social development of communities in the municipalities where they operate.