Corporate Responsibility 2011
description
Transcript of Corporate Responsibility 2011
SustainabilityReport
For more information: www.PRONACA.com
Comments: [email protected]
Agricultural Research and Development Center at La Josefina, Province of Guayas. 2
Table of Contents
Introduction
About this report
Message from the Board
Our Company
Philosophy
Organizational Structure and Corporate
Governance
5
6
7
8
9
Environmental Balance
Environmental Management
Clean development mechanisms
Environmental management indicators
High-impact environmental initiatives
Recycling
Achievements and commitments
25
25
26
27
27
29
GRI Indicators
Verification Letter
Indicators
62
65
Economic Balance
Financial Management
INAEXPO
Rural Area Fields
Achievements and commitments
11
15
19
23
Social Balance
Product Responsibility
PRONACA’s commitment
A company that listens
Contact, complaint, and claims center
Quality and Food Safety
Control systems
Food safety control
31
33
34
35
36
Operational Center Certifications
Achievements and commitments
Biosafety
Animal welfare
Organizational Development
Human rights enforcement oversight
PRONACA co-workers
Continuing education
Fringe benefits
“Golden Roosters”
Achievements and commitments
Occupational Health and Safety
Aculture of risk prevention
Health promotion
Generating dialogue and relationships with stakeholder groups
Positive relationships with communities
Well-being and health with neighboring communities
San Luis Foundation
PRONACA committed to education
“It’s Never Too Late to Learn” Program
Food Bank
Volunteering
Achievements and commitments
37
39
40
40
41
42
43
45
47
49
50
52
53
55
56
57
58
59
59
60
61
44 Farmers in rice plantation, Guayas Province
ABOUT THIS REPORT
Introduction
In terms of coverage, this document contains complete
information on the performance and results of 2011.
This edition has relevant indicators about the business
of PRONACA and INAEXPO in Ecuador.
INAEXPO is PRONACA’s company in charge ofits export
business, with PRONACA being its sole shareholder.
This report is the product of a sustained collection and
structuring of information, as well as of direct dialogue
with stakeholder groups of the Company.
The financial information reported is based on
International Financial Reporting Standards (IFRS)
required by the Superintendency of Companies of
Ecuador.
The financial statements for this report have been
verified by the independent auditing firm of Deloitte &
Touche for the reported period.
According to the principles of completeness and
materiality defined by the Global Reporting Initiative
(GRI), this report does not report 20 performance
indicators. The reason for this exclusion is that they are
not applicable to our activity or to certain processes.
The contents and information on this report may also be
accessed on our website.
www.pronaca.com
This is the fifth Sustainability Report presented by Procesadora Nacional de Alimentos, PRONACA. It contains relevant
information on the economic, social, and environmental impacts of our business during the year 2011. This report
has been prepared in accordance with the recommendations and parameters of the Global Reporting Initiative (GRI)
and Global Pact, fulfilling the principles required by the GRI, performing an A+ GRI CHECKED, and with a third-party
verification performed by Deloitte & Touche.
6
MESSAGE FROM THE CHAIRMAN OF THE BOARD AND FROM THE CHIEF EXECUTIVE OFFICER
We are pleased to deliver the fifth Sustainability Report from PRONACA. This document covers an integral vision of the activities we conduct in our organization.
The report deals with the economic, environmental, and social aspects of our business. Each one of the chapters presents information related to our co-workers and other stakeholder groups with which PRONACA has on-going relationships.
The most noteworthy fact in this report is PRONACA’s role in promoting development in agriculture and as a supplier of quality food for all members of Ecuadorian society.
A very important aspect of PRONACA’s business model is its development of integrated farmers that work with us not only with corn and ricebut also with broiler chickens, artichoke, and heart-of palm.
In essence, this integration system consists of helping the farmer obtain the necessary credit and ensuring a market for his products. In addition, we establish a cooperation triangle betweenthe credit, the farmer, and the delivery of his crop at agreed-upon prices, while some funds are retained in order to pay back his loans.
This integration system produces a win-win situation for the farmer, for agriculture and for agroindustry, whereby all parties obtain a reliable market based on a reliable vendor. In this manner we can build lasting, long-term relationships where everyone wins.
Dear Friends
Sincerely,
Luis Bakker Jr.
CHAIRMAN OF THE
BOARD
Juan Ribadeneira E.
CHIEF EXECUTIVE
OFFICER
Introduction
For over 25 years PRONACA has been a company that exemplifies its commitment with the goals of food safety and food sovereignty. It is very important for Ecuador to know how to feed itself. There are farmers in the fields to whom we can teach new technologies through agricultural extension programs that should be carried out by both the public and the private sectors. There are fertile lands and there is a climate that allows many products to be harvested, such as corn and rice, among others. We should highlight the support we provide to corn farmers through the incorporation of new technologies, with quality seeds and technical processes so that, through our joint efforts we may all achieve the goal of turning Ecuador into a country that is self-supplying in corn by the year 2015. All of this while simultaneously taking care of nature for future generations and meeting all the environmental regulations adopted by the government.
The work performed by our co-workers and with communities in the areas near our operations, also deserves a special mention. We are convinced that the only path towards mutual growth and success is one in which the Company, with its entire staff, together with its suppliers and clients, is the only way to ensure a future for all us.
We trust that by reading these pages you will obtain a perspective of the work performed by a company that prides itself in being Ecuadorian and that strives to play a positive role in Ecuador’s present and future.
OUR COMPANY
In 1957, the INDIA Company was founded, a pioneering company in the Group, dedicated to importing agricultural products. It grew in the poultry industry with incubation, and commercial egg trade, and later through seed research and production.
PRONACA was founded in 1979 as Procesadora Nacional de Aves, whichin 1999 became Procesadora Nacional de Alimento.
During the 90’s, it diversified its production in meats and other foods, and began exporting canned heart-of-palm.
During the new century, PRONACA has taken its production and marketing model for heart-of-palm to Brazil, and its processed products to Colombia.
Presently, PRONACA is a proudly Ecuadorian company that nourishes people well and generates development in the agricultural and livestock sector, with social and environmental responsibility at heart.
PRONACA Co-workers, Inverna Building, Quito.
8
Principles
SuppliersPRONACA believes in and practices respect for its suppliers, to whom it offers a fair profit in every negotiation within a framework of ethical behavior. It fosters compliance with the law along with socially responsible behavior.
Co-workersPRONACA leads its co-workers through example, which is to be competent, fair, and ethical. It has a commitment with solidarity and is respectful with the well-being of each and every one of them, and it does not tolerate dishonesty. It recognizes talent and offers fair remuneration. It fosters teamwork and delegation with responsibility in working conditions of cleanliness, order, and safety.
It offers equal employment opportunities, career advancement, and promotion to all co-workers who are qualified for it. It motivates and accepts suggestions and recommendations from its co-workers for the good of the Company.
ClientsPRONACA works together with its clients in order to always offer quality products. It is innovative with its processes and products in order to lead in the markets in which it is present. It answers its clients’ requests in a quick and through manner.
ConsumersPRONACA, as its main responsibility, provides innovative, healthy, and quality products that nourishes its consumers well, and which contribute to the well-being and satisfaction of their families.
SocietyPRONACA, in agreement with its corporate social responsibility outlook, conducts itself as a good citizen, always seeking to form the best relationship with various stakeholders in an atmosphere of harmony and collaboration. It shares its experience and know-how in order to contribute to the development and quality of life within the area of influence of its operations. It encourages civic commitment and pays all of its taxes. It is respectful and practices solidarity with all persons and with care for environmental balance.
AssociatesPRONACA acts responsibly with producers and entrepreneurs. It invests in research and development and creates innovative products. It shares its philosophy and creates business opportunities for its associates with whom it maintains a close, fair, and mutually beneficial relationship.
PRONACA’S PHILOSOPHY
PurposePRONACA exists to nourish people welland generate development in the agricultural and livestock sector.
Values
Integrity, Solidarity, and Responsibility.
Introduction
PRONACA in Ecuador
ORGANIZATIONAL STRUCTURE AND CORPORATE GOVERNANCE
At PRONACA, the supreme governing authority is the
General Stockholders Board, which meets in Ordinary and
Extraordinary General Board Meetings comprised by legally
summoned stockholders. The General Stockholders Board
meets at least once a year to address matters pertaining to
the management of the Company.
The Board is elected by the General Stockholders Board
and comprises the highest administrative authority, and
has three external Directors. Among its responsibilities is to
make decisions concerning financial, economic, and policy
approval issues that govern the organization.
The operation and structure of these two government bodies
are depicted in the Incorporation Charter of the Company,
and fulfill all mandates of the control agency known as the
Company Superintendency of Ecuador. There are in addition,
internal regulations that govern the operations of the Board.
PRONACA has several executive committees that execute
and provide follow-up to the various business strategies within
their competencies. This corresponds to an organizational
structure designed to adequately manage the risks and
opportunities associated with the business.
SUCUMBIOS
ORELLANA
PASTAZA
MORONA SANTIAGO
ZAMORA CHINCHIPE
LOJA
AZUAY
CAÑAR
CHIMBORAZO
BOLIVAR
LOSRIOS
COTOPAXI
PICHINCHA
SANTO DOMINGO DE LOS TSÁCHILAS
NAPO
IMBABURA
CARCHI
TUNGURAHIUA
MANABÍ
ESMERALDAS
GUAYASSANTAELENA
EL ORO
NUEVA LOJA
QUITO
TENA
PUYO
FCO. DE ORELLANA
TULCÁN
IBARRA
ESMERALDAS
SANTO DOMINGO
LATACUNGA
AMBATO
RIOBAMBA
MACAS
CUENCA
MACHALA
LOJAZAMORA
GUAYAQUIL
SANTA ELENA
PORTOVIEJO
BABAHOYO GUARANDA
AZOGUES
PRODUCTION ACTIVITITES
INTEGRATED
DISTRIBUTION NETWORK
REGIONAL OFFICES
EDUCATIONAL CENTER
1010 Transparency is one of the main pillars at PRONACA.
SOLID AND TRANSPARENT FINANCIAL MANAGEMENT
Economic Balance
PRONACA maintains a strong commitment to localand national development.
Clear and reliable balances are the calling card of PRONACA in Ecuador. The committed work of thousands of co-workers, along with the trust expressed by its stockholders, forms the basis for its sustainable development.
These economic figures correspond to the general financial statements of our company as of December 31, 2011, respectively.
Balance Sheet at December 31, 2011(Expressed in thousands of US Dollars)
Current Assets
(+) Net Properties, plant, and equipment
(+) Other assets
= Total assets
Current liabilities
(+) Liabilities and long/term provisions
(+) stockholder equity
= Total liability and equity
264,019
179,768
105,057
548,844
130,365
127,346
29,.133
548,844
Comprehensive results for years endingDecember 31, 2011 (Expressed in thousands of US Dollars)
Net Sales
(-) Costs and expenses
= Profit before co-worker profit sharing and income tax
(-) Co-worker profit sharing and income tax
= Net Profit
* For the purpose of this Sustainability Report, we are presenting co-worker profit sharing in detail as well as individually.
728,863
681,072
47,791
14,426
33,365
suppliers
nationwide.3,026 suppliers
in the InclusiveIntegrated Program.
196suppliers are
domestic.
of all 94%
121212
Taxes paid in 2011(In thousands of US Dollars)
Employer contributions(In thousands of US Dollars)
Year 2011
Production employer contributions
Administrative employer contributions
Commercial employer contributions
Total
4,139
1,360
1,761
7,260
Economic Balance
12
Added Value Tax –VAT Expense
Custom Duties - Imports
Income tax expense
Tax on outward foreign exchange
Tax on rural land
Municipal tax
Total
7.166
1,834
8.244
2.945
29
917
21,135
Agricultural Corn Integration and Extension Program, Province of Los Ríos.
Suppliers are an essential part of PRONACA’s production
chain. The provision of quality raw materials and inputs
represents a process that generates sustainable business
opportunities, which is concentrated at the local and national
levels. The adequate mechanism of vendor selection,
qualification, and registration, results in the development of
those who provide services, inputs, and raw materials.
PRONACA’s growth goes hand-in-hand with its suppliers’ development.
During 2011, PRONACA consolidated a work process focused
on formalizing smaller suppliers. The Company achieved
more secure and consistent business deals by eliminating
only occasional deals. This initiative concentrated such
efforts in Bucay (Coastal Regional Office) and in Santo
Domingo de los Tsáchilas. Practices considered comprise
mainly labor, environmental, and health and safety norms.
Number of Suppliers per Region (in thousands of US Dollars)
Year
Guayaquil - Bucay
Santo Domingo
Quito
Others
Total
2011832
756
1,272
166
3,026
2010844
778
1,285
182
3,089
Amount of purchasesper Region (in thousands of US Dollars)
Year
Guayaquil - Bucay
Santo Domingo
Quito
Others
Total
2011118,000
96,000
119,000
9,000
342,000
Purchase amount per Supplier per Origin
YearAbroad
National
Integrated
Total
2011172,000
233,000
109,000
514,000
2010136,000
191,000
90,000
417,000
(in thousands of US Dollars)
Number of Suppliersper Origen(in thousands of US Dollars)
2011284
2,830
196
3,310
2010208
2,872
217
3,297
201085,000
98,000
93,000
6,000
282,000
Year
Abroad
National
Integrated
Total
1414 Heart-of-palm plantation, INAEXPO, Santo Domingo de los Tsáchilas.
INAEXPO
INAEXPO, Industria Agrícola Exportadora, was founded in
1992 with the mission of exporting quality heart-of-palm. A
decade later, it began the project for the export of artichoke.
By early 2001, it expanded its production and marketing
model for heart-of-palm grown in Brazil. Presently, Ecuador is
the largest exporter of cultivated heart-of-palm in the world.
This achievement, supported by INAEXPO, has required
investment, research, agricultural development, and
knowledge of international markets. INAEXPO’s heart-of-
palm is produced in the subtropical areas of the country,
and reaches 78 clients worldwide distributed in 27 countries
spanning Asia, Africa, Europe, and the USA.
destination countries for
our products.27 clients
internationally.78containers ofheart-of- palm and artichoke
produced.
1,429
An example of success for the agro-export sector of the country that typifies the commitment with Ecuador and with the world by facing the challenges of quality Ecuadorian exports.
Economic Balance
Offices andRepresentatives Destination countries for our products Commercial / Production Operations
France, Spain, United States, Canada, Venezuela, Argentina, Chile, Mexico, and Israel.
Argentina, France, United States, Chile, Canada,Spain, Israel, Belgium, Uruguay, Ecuador, Italy,Lebanon, Colombia, Germany, England, Morocco,Australia, Mexico, Jordan, Singapore, Switzerland, Saudi Arabia, The Netherlands, Luxemburg, Paraguay, Venezuela, and Brazil.
Ecuador, Brazil, and Costa Rica.
16
Main export products
A model that ensures quality
INAEXPO’s main export products are cultivated heart-of-palm
and artichoke, both in preserves, which are sought after by the
most demanding consumers in the world due to their delicacy
and quality.
The production process begins where INAEXPO has
implemented an integration model with small and medium-
sized producers from whom, through a long-term agreement,
it purchases all of its production directly.
Farmers who are integrated are given, in addition, quality
agricultural inputs, technical assistance, training, and
technological transfer.
The business model is focused in processes that
guarantee a high-quality product, ready to comply with
international market parameters.
In 2011, INAEXPO maintained its quality control systems
based on the standards followed by IFS (International
Food Standards), ISO 22000, and HACCP (Analysis and
Control of Critical Points), and BASC (Business Alliance
for Secure Commerce). The products and processes
comply with the FDA (Food and Drug Administration),
and with the Codex Alimentarius Commission.
Economic balance
Indicators 2011
Participating farmers
Hectares planted by integrated farmers
Monthly income / farmer
Technical Assistance (training hours per farmer)
Employment generation (workdaysapproximately)
Families involved
Transport – annual investment (thousands of US$)
Improvement in farmers’ formality
Average productivity vs. Marketing
Incorporation of Environmental GMP (Good Manufacturing Practices)
Investment in Ecuador (thousands of US$)
Large Farmers
Medium-sized farmers
Small farmers
Sales (thousands of US$)
202
7,226
USD 4,968
54
385,000
1,010
657
Ruc y RIse
6.5 vs. 4.5
Manejo dedesechos
7,625
23%
51%
26%
37,924
Indicators 2011
Participating farmers
Hectares planted by integrated farmers
Monthly income / farmer
Technical assistance (training hours per farmer)
Employment generation (workdays approx.)
Families involved
Average productivity
Sales (thousands of US$)
150
811
USD 3,645
60
221,760
776
18.28 tn/Ha
11,159
Heart-of-palm Artichoke
INAEXPO worker harvesting heart-of-palm, Santo Domingo de los Tsáchilas.
18
Gonzalo Moya Vice Presidentof International Business
In 2008, the world market underwent a series of
impacts that caused a significant drop in certain
products. Until 2011, these variations were overcome
by INAEXPO, which has consolidated its adaptation
process to the crises as of lately. In order to do so,
the production processes for heart-of-palm and for
artichoke have been consolidated in order to make
them more efficient through improvement of our
production plants.
INAEXPO is the only company in the world, in the heart-
of-palm business, which has a plant with the correct
levels of water reprocessing, residual water treatment,
and treatment of waste and debris.
COMMITMENTS FOR 2012
In the artichoke business, INAEXPO will invest in a residual water treatment plant, which will allow a reduction in the environmental impact that the business has through the use of a cleaner and friendlier technology with the environment.
Maintain certifications and markets.
Implement improvements in agricultural, industrial, and commercial areas in order to achieve a sustained profit.
In the artichoke business, INAEXPO will institute new proposals in order to strengthen the strategy of raw material provisioning, and implement improvements in the productive process.
ACHIEVEMENTS IN 2011
Heart-of-palm and Artichoke
1,429 containers produced.
929 direct co-workers.
25,126 tons of heart-of-palm fiber were sold to 16 cattle ranchers in the area.
“INAEXPO continuesto overcome obstacles”.
Artichoke plantation, Highlands Area, Latacunga.
THE FIELDS ARE THE BEGINNING OF THE VALUE CHAIN
Agricultural and livestock integration and extension programs generate development in the productive chain of our Company.
Integrated poultry farming
The poultry farming integration program is an initiative by
PRONACA to establish a direct relationship with individual
poultry farmers. The Company provides quality raw materials
for the raising of poultry (bb chicken, bird feed, vaccines,
technical assistance, and training) while those integrated
implement poultry equipment and a biosafety system.
The zoo-technical yield is assessed through the European
Efficiency Factor, which measures the percentages of viability,
daily weight gain, and feed conversion.
Economic balance
PRONACA provides technical assistance to farmers. Agricultural Corn Integration and Extension Program, Provinces of Guayas, Los Ríos, and Manabí.
20
2011 was a very good year for poultry farming integration. The production
results attained have surpassed those of previous years, and the profits
obtained have fulfilled the expectations of over 80% of those integrated
ones. Poultry farmers have been made aware of the importance of
improving biosafety practices, conditions of infrastructure, and equipping
of their sheds. Training workshops have been organized in order to share
corporate responsibility practices with them.
*The data of the economic exercise of integrated poultry farming belong to each one of their financial exercises.
Integrated poultry farms
Indicator / year 2011 2010
Participating producers
Families involved
Employment generation
Technical assistance (training hours per producer)
Average productivityvs. Marketing
Incorporation of Environmental GMP
Investment in Ecuador(thousands of US$)
96
576
480
212
278/300vs. 254/300
Provision of vaccines,loans, and training in
operational norms
23,054
91
546
455
220
297/300 vs. 260/300
Provision of vaccines,loans, and training in
operational norms
24,549
20 Poultry farming center, Tropicales Farm,
Santo Domingo de los Tsáchilas
Integrated corn farming
The integrated corn program (large, medium, and small) is focused on
training corn farmers in order to achieve a more efficient and quality-
oriented production following the standards that the company maintains.
PRONACA has liaised with government agencies in order to generate
long-term development in the fields, which has motivated trust and new
opportunities for growth, especially for farmers with less than 10 hectares.
Among the most noteworthy results, there are the leveraging of small farmers
in knowledge and techniques on corn farming with adequate technologies,
and in corn, bean, sorghum, and sunflower cultivation in order to determine
the feasibility of planting during the summer through irrigation systems.
Integrated PPC (More than 10 hectares)
Indicator / year 2011 2010
Total investment amount (thousands of US$)
Total number of participating farmers
Products associated to the project
Results achieved
Area cultivated with farmers (ha)
Loan recovery portfolio (thousands of US$)
Average productivity (Tm/Ha)
Amount of corn delivered to PRONACA (MT)
Technical visits
5,256
300
Corn
18,086
4,987
5
75,323
1,380
2,567
293
Corn
17,007
2,511
4.5
62,498
986
PRONACA ensures the quality of one of its
main raw materials: corn.
Integrated PII (Less than 10 hectares)
Indicator / year 2011 2010
Total investment amount (thousands of US$)
Total number of participating farmers
Total number of benefitted farmers
Products associated to the project
Cooperating institutions IDB, SNV, Municipality of El Empalme
Results achieved
Area cultivated with farmers (ha)
Loan portfolio recovery (thousands of US$)
Average productivity (Tm/Ha)
Amount of corn delivered to PRONACA (MT)
Farmers trained
633
159
533
Corn
1,386
558
5.8
3,979
533
218
58
469
Corn
415
202
4.5
1,243
469
2222Farmers touring the Agricultural Research and Developmet Center at La Josefina, during the “Golden Corn on the Cob 2011” Event.
ACHIEVEMENTS 2011
We achieved record results in certain lots of poultry
farming when we reached feed conversions of 1.67*.
Integrated farmers have strengthened their businesses
and project growth for 2012 based on state-of-the-art
technology for poultry production.
We generated a change in the production scheme
of the integrated farmer that allows ordering of their
procedures through GMP (Good Manufacturing Practices)
and support of Integrated technicians.
We generated a sense of belonging in the integrated farmer
that yielded further trust in dealings with the company. This
was achieved through assistance, training, motivation, and
recognition.
* Feed conversion is the relationships of weight versus feed consumed in kilos.
Jorge ZambranoCorn farmer – Canton of Mocache
“The secret to becoming Number One is to work as instructed by INDIA-PRONACA technicians and follow their recommendations step by step. They visit us twice a month, but if we see unconformities in certain areas of production, we call the technicians so that they may guide us.
Another important aspect is that we set up a simple goal: to have good production. I have always grown corn, but about 6 years ago, I started to put more heart in growing corn. I was about 28 years-old when this happened. I put more dedication into this process by trying not to depend too mucho on the workers.
That’s when I realized the importance of my spending more time at the plant, of understanding how it works, and of constantly verifying whether the products applied are producing good yields”.
First place in Mazorca de Oro(Golden Corn on the Cob) for 2011
COMMITMENTS FOR 2012
Support self-storage of hard yellow
corn through the association of small
farmers so that they may have their
own drying and storage infrastructure.
Foster summer corn growing through
an irrigation system in order to
increase their annual production and
therefore increase revenues for the
farmers.
Develop the implementation of family
gardens (corn receiving and drying
facilities).
Integration Programs
Economic balance
2424PRONACA co-workers in Santo Domingo de los Tsáchilas.
ENVIRONMENTAL MANAGEMENT IS ASTRATEGIC COMMITMENT FOR PRONACA
Environmental Balance
Sustainability of our operations depends on good practices and responsible management of resources.
Clean Development Mechanisms (CDM).
For PRONACA, 2011 was a year of consolidation in the
application of environmental policies that are cross-cutting
to the organization. Responsible management of natural
resources is a daily practice that has become an essential
part of PRONACA’s work culture at its operational centers.
As signatories of the Global Pact, and in agreement with
Principles 7, 8, and 9, which contemplate development of
a preventive focus in light of environmental challenges,
fostering greater environmental responsibility, and
encouraging development and diffusion of respectful
technologies mindful of the environment, PRONACA
continued the development of the gas emissions reduction
project that cause the greenhouse effect.
Technological changes were performed at 6 operational
centers, which are framed around a comprehensive
environmental management that is based on cleaner
production concepts. As of 2011, PRONACA stopped
releasing 202,617 tons of CO2 into the atmosphere. This is a
process subject to yearly verifications and approvals by the
United Nations Organization (UNO).
Between the years 2010 and 2011, PRONACA invested
1,643 (thousands of US$) in this process. It carries an
environmental policy based on compliance with current
legislation. Our company has made an effort to follow
national and international standards concerning the
environment and in order to institute procedures to develop
new alternatives of environmental care.
We are continuing with the application of the indicator model
that reports the consumption of energy, fuels, and packaging,
the generation of non-toxic waste, and residual waters.
These comprise the five indicators that are showcased every
year in order to verify advancement and compliance with the
environmental policy.
The procurement of 70 environmental permits has comprised
a significant advance in our administration. These permits
are obtained at the Ministry of the Environment and at
Environmental Secretariats at local municipalities. This
information is included in environmental studies performed
and presented periodically, in agreement with the stipulations
of the Law on Environmental Management and the Unified
Text of Secondary Environmental Legislation (Tulas—in
Spanish).
environmental permits observing current legislation.
70
11 treatment
plants for residual water
implemented nationwide.
74,193trees planted as
of 2011.
kilos of recycled paper.
11,455
tons of CO2 not released into the atmosphere as
of 2011.
202,617
man-hours of training inenvironmental culture.
4,615
26
Kw-h / year2011Business
Kw-h / ton pt*2011
27,471,723
5,231,100
435,062
25,770,856
7,133,321
637,517
1,499,109
Poultry
Pork
Commercial eggs
Livestock
Cold meats (cold cuts)
Preserves
INAEXPO - Heart-of-palm
270
205
38
45
550
116
148
Energy consumption Fuel
Non-toxic waste
gal. fuel/ año 2011
gal. / ton pt.2011
27,471,723
5,231,100
435,062
25,770,856
7,133,321
637,517
1,499,109
270
205
38
45
550
116
148
Business
Poultry
Pork
Commercial eggs
Livestock
Cold cuts
Preserves
INAEXPO - Heart-of-palm
Kg / year2011
Kg / ton pt2011
15,7121
55,870
62,848
6,00,080
153,481
16,947
92,559
1.5
2.2
5.5
1.0
11.8
3.1
9.2
Business
Poultry
Pork
Commercial eggs
Livestock
Cold cuts
Preserves
INAEXPO - Heart-of-palm
Residual water
m3 of industrialresidual water 2011
m3 / ton pt2011
1,072,417
111,168
8,765
115,165
125,362
78,720
161,771
10.6
4.3
0.8
0.2
9.7
14.3
16.0
Business
Poultry
Pork
Commercial eggs
Livestock
Cold cuts
Preserves
INAEXPO - Heart-of-palm
Packaging
Number of bags 2011
Unitsbags/ton pt.2011
43,296,713
7,195,642
426
281
Business
Poultry
Pork
Toxic waste**
Spent oil(gal)
Biopeligrosos(kg)
Bio-hazardous chemicalcontainers (kg)
4,282
4,369
1,545.5
1,019.7
2,424
12,628
726
15,778
5,486
2,138
3,383
11,007
Zone
Coast
Santo Domingo
Highlands
Total
** Final disposition: Environmental manager certified by environmental authority.
* Tons per finished product.
* Tons per finished product.
Figures of an environmentally-friendly administration.
Environmental Balance
Large-impact environmental initiatives.
Continuously, the company invests in the continuous
implementation and improvement of environmental control
and prevention systems in order to optimize resources,
minimize impacts on water and air in their areas of
influence, and improve the management of solid waste.
The resulting waste stemming from the various production
activities that PRONACA embarks on is managed and
disposed of by following procedures the observe current
legislation.
Inorganic waste that is not reused internally is delivered
to environmental managers, certified by local authorities.
Organic waste stemming from industrial plants represents
the raw material for new production processes. Some
is used for the production of fertilizers commercialized
nationally, and is used at plantations and gardens within
the company’s facilities.
Concerning pig breeding, since 2000 to-date, a system has
been developed and implemented for rearing pigs with
decreased impact on the environment. This system uses
rice-husk beds, eliminates the use of water in the cleanup
of production areas, minimizes the presence of odors, and
allows obtaining organic fertilizers. There are bio-digesters
at the breeding and fattening farms for the treatment of
residual water.
Bio-digesters at pig farms use a technology that allow for the
comprehensive management of organic waste. These are
closed systems that facilitate the decomposition of organic
matter under anaerobic conditions, i.e., the absence of
oxygen. As a result of this process, it is possible to obtain bio-
fertilizers, organic fertilizers, and bio-gas. Processing based
on bio-digesters represents one of the most advanced
techniques employed in Ecuador, and in this aspect,
PRONACA sets the highest standards for the industry and for
this sector of the economy.
Paper recycling, reuse and reforestation.
PRONACA continued with the 3R Program for paper, water,
and energy reduction, reuse, and recycling. The same is done
with reforestation, which links co-workers and their families.
This initiative forms part of the corporate volunteerism effort
that seeks to motivate environmental awareness not only as
co-workers but also as citizens.
3R Campaign, paper reduction, reuse, and recycling.
2828Laboratory, residual water treatment plant, Valle Hermoso, Santo Domingo de los Tsáchilas.
ACHIEVEMENTS IN 2011
SUCCESS CASE
Residual water treatment plants.
One of the most relevant aspects of PRONACA’s operations
has been the implementation of 11 modern residual water
treatment plants nationwide. As of 2011, PRONACA has
invested close to $10.2 billion dollars, which comprises an
example nationally concerning adequate environmental
management in this industry. These plants employ
microbiological techniques to purify the residual water and
allow for discharges that return back to nature to fulfill the
parameters established by current environmental legislation.
Environmental Balance
During 2011, PRONACA continued with
the CDM project (Clean Development
Mechanism).
We consolidated the culture of environmental
work in the organization, and we set
challenges for management in excellence at
national production centers.
As of 2011, we have planted 74,000 trees
nationwide.
COMMITMENTS FOR 2012
During 2012, we will work on the carbon and hydric
footprint.
To register a Clean Development Mechanism at the
United Nations Organization (UNO).
Environmental Care
Julio AguilarDirector of Operations
The practice of responsible production policies forms an
essential part of PRONACA’s organizational culture. This is
why the Company has a management model that implies a
renewed commitment with its stakeholders. This work, which
has been performed in a gradual, progressive, and sustained
manner in time, highlights important projects developed
during 2011.
One of them is the incorporation of a new technology to
improve the bio-digester system in the production of pork.
This makes it possible to use gas as a source of fuel in order to
generate sustainable electrical energy.
The physical and human investment to implement a
composting system in our plants represents another
contribution to the environment since through this mechanism
we can use our own waste and turn it into organic fertilizer
containing agronomic value.
“PRONACA is permanentlycommitted with the environment”.
3030PRONACA offers Ecuadorian families high-quality innovative products.
PRODUCT RESPONSIBILITY
Social Balance
PRONACA’s commitment is geared toward maximizing quality, healthy, innovative, and fairly-priced products.
PRONACA anchored its presence in the market during 2011 with
the creation of innovative products with attractively presented
packaging.
PLUMROSE strengthened its Daily Line, which responds to the
needs and likes of consumers. It grew to 68,232 points of sale
with its fractioned presentations, accessible prices, and an
efficient distribution system. Its sales grew by 54% in relation
to 2011.
Since June 2011, Ecuadorian consumers can enjoy the new
fractioned presentations in Mr. Pollo cold cuts with sausages
and bologna, nutritional and economic products with the
guarantee of PRONACA. Its excellent acceptance was reflected
in brand sales at the 46,490 points of sales where it is present.
This year PRONACA continued working together with the
Programa Socio Solidario (Partner in Solidarity Program),
through which it contributes with products that fulfill high quality
and nutritional value standards to the Ecuadorians’ basic family
food basket. Its sales grew 35% in comparison to 2010, and its
products were present in over 36,900 points of sale nationwide.
The portfolio for Mr. Chancho fractioned products consolidated
its presence at the dinner table of Ecuadorians. Its sales
registered a 105% increase in comparison to 2010, as a show of
trust and preference by Ecuadorian families. Similarly, ready-to-
bake Mr. Pavo turkey breast was launched this year intended for
modern housewives who wish to maintain family tradition and
save time in food preparation.
In order to diversify the daily menu of Ecuadorian families
along with economic, nutritional, and easy to prepare menus,
PRONACA broadcast Te Queremos Mejor Alimentado TV (We
Want You Better Nourished) (TQMA.TV). During this second
season, PRONACA delivered 40 new menus costing between
US$ 0.60 and US$ 1.00 per serving. The quick preparation
channel presented a growth of 8%, which responds to
PRONACA’s commitment with its customers, by offering quality,
reliable products, which are in addition profitable for the
individual businesses.
In the pet business, during 2011, Ecuadorian consumers
awarded our efforts in developing nutritional and quality
products for dogs, with an increase of 9% in comparison to
2010 in PROCAN sales. Furthermore, the company set the
bases for the PRONACA Pet Care and Nutrition Research and
Development Center. With an investment surpassing 1 million
US dollars, this complex was created to foster the study and
creation of new healthy and quality pet food.
In order to comply with the standards of launching new
products, PRONACA conducts blind tests in order to determine
which products will be launched to the market with less than
70% customer acceptance.
All products reaching the final consumer comply with labeling
and sanitary legislation, and its labels contain information on
the nutritional value, date of manufacture and expiration, list of
ingredients, sales price, commercial brand, and further data
demanded by current legislation. During 2011, PRONACA did not
report cases of labeling incompliances.
PRONACA ethically respects consumer rights, and its advertising
is neither deceitful nor does it employ images of children.
POP growth
for Mr. Cook en through Socio Solidario.
35%new productssales growth.
11.4% offer products for the base
of the pyramid.
sales points68,232
growth of Mr. Chancho from fractioned sales.
105%
32
Social balance
ACHIEVEMENTS IN 2011
With the presentation of the new TQMA.TV (We Want You
Better Nourished) recipes, PRONACA broadcast over
19,519,000 spots on TV, radio, press, and the Internet.
PRONACA opened the doors to its new value/added
product plant in order to satisfy the growing demand for
these products and in order to reach the base of the pyramid
with the Mr. Cook brand.
market share in the cat food segment.
COMMITMENTSFOR 2012
For 2012, the presence of the quick
preparation channel will continue
consolidating itself with the development
of a portfolio in keeping with the needs of
this segment.
House pets will now have new pet food:
COMPA with the quality of PRONACA.
The Socio Solidario line will have a new
member in its family when fish products
join in. Its great taste and affordable
prices place them among the most
preferred foods by consumers.
PRONACA will continue contributing to
the diet of Ecuadorian families with its
portfolio of functional food with products
such as Indaves Eggs with Omega 3.
Practical and Nutritional Solutions
My customers have always sought PRONACA products for their quality, variety, and flavor. Sausages and bologna from the PLUMROSE Daily Line are the preferred cold cuts of those who buy at my store. Whenever they are no longer in my fridge, my customers tell me: “Neighbor, you are out of Daily Line”.
Sofía ParedesOwner of BigMarket - Quito
“My customers protestwhen there is no Daily Line”
PRONACA creates innovative products that are easily commercialized in order to promote its clients’ businesses. In this regard, the Company has designed a distribution channel that directly involves small business owners, such as convenience stores, which are given a wide portfolio of easily-commercialized products that boost their growth.
Juan MayaMarketing Director
“A goal that is achievedstep-by-step”.
A company that listens to the voices of customers and consumers.
Whoever wishes to make a suggestion or to present a complaint may do so at 1800-PRONACA, 1800-PLUMROSE, 1800-SUTIENDA,
our webpages, and through direct contact at fairs and events.
Publication ContentTargetPublic
Print-Run2011
Print-Run2010
*TQMA Magazine
“Alimentarte”(Nourishing You)
Online
Quarterly magazine offering information on health, nutrition, family, ways to protect the planet, and recipes. The purpose is to generate fidelity, facilitate knowledge on the use of the products, and support the launch of new brands or presentations.
This virtual bulletin contains notes on nutrition, health, family, and current issues. Its purpose is to foster consumption of PRONACA products and to consolidate an interactive communications channel that strengthens the relationships and loyalty with the consumer.
Consumers
Consumers
690,000copies,
5 editions
326,056deliveries,12 digital editions
760,000copies,
5 editions
461,787deliveries, 12 digital editions
Su Tienda
(Your Store)
Proagro
Procampo(Pro-field)
This is a magazine that publishes information that facilitates the management and administration of these businesses in a simple and direct manner.It is designed to reinforce relationships with this segment, communicate releases, promotions, and foster training.
This is a trade technical magazine, which addresses agricultural health and nutrition, seeds and the options of technical support that farmers can count on. Its purpose is to disseminate information, product portfolios, and releases.
Magazine of trade technical content that addressesissues of animal nutrition, health, and genetics. Its purpose is to improve productivity through technical, commercial, portfolio, and new product launches.
*We Want You Better Nourished.
Clients(Storeowner)
Clients:(farmers)
Clients(livestockranchers)
600,000copies,
12 editions
4,000copies,1 edition
0
600,000copies,
12 editions
36,000copies,
6 editions
36,000copies,
6 editions
Ganadería:
Porcicultura:
Avicultura:
Revi
sta
Bim
estr
al /
Dis
trib
ució
n G
ratu
ita /
Dic
iem
bre
- Ene
ro 2
011
- 201
2 / E
dici
ón #
6
Revi
sta
Bim
estr
al /
Dis
trib
ució
n G
ratu
ita /
Dic
iem
bre
- Ene
ro 2
011
- 201
2 / E
dici
ón #
6
Alimentación del
cerdo, ¿por qué
escoger los balancea-
dos?. Página 6
Los principales
cuidados para el
ganado seco.
Página 8
El agua: nutriente
principal para la
anancia de peso.
1
Los inclusivos y zonales
también tienen mérito
Página 9
Mazorca de Oro: Una historia de
compromiso con el desarrollo del
sector maicero ecuatoriano
Página 4
REVISTA AGRÍCOLA
PUBLICACIÓN BIMESTRAL. CIRCULACIÓN GRATUITA.
NO.7. DIC. 2011- ENE. 2012
PRONACA premia a los mejores
productores de maíz
¡Es hora
de jugar!
El juego divierte e
integra a la familia
Ipads, smartphones
y gift cards
CELEBRAR
EN FAMILIA
www.tqma.tv
EDICIÓN
NAVIDEÑA
CELEBRAREELEBRAR
CELEBRARACELC
FASCÍCULO 40
DICIEMBRE 2011
el mejor regalo
Compra lomos
marinados Mr. Chancho
Participa por un IPAD2
y varios premios más
Pág. 25
Pág. 2
Pág. 24¡Únete en Facebook
y gana con Mr. Pavo!
34
Contact center Complaints and claims
(1) Advertising, damaged labels, nutritional information, promotions.(2) Damaged product, expired product, damaged packaging, misrouted.(3) Service, delivery, dispatch.
Category
Marketing (1)Quality (2)Service (3)
Total
Complaints 2010
%
2542167
711
0%76%23%
100%
%Complaints 2011
2%70%28%
100%
18528210
756
Social balance
During 2011, PRONACA adequately handled complaints and
claims from clients and consumers, thus demonstrating its
commitment of guaranteeing healthy and quality products.
PRONACA has a quick and efficient process to provide
answers in the shortest time possible, to concerns,
complaints, and claims from our clients and consumers.
Clients and consumers who wish to make a suggestion or a
complaint can do so by calling 1-800 PRONACA or by visiting
www.pronaca.com. Means of Contact
Contact Center PRONACA.com webpageprocan.com.ec webpageplumrose.com.ec webpage
Contact numberat fairs and events
Total
Contacts 2011
19,338445,185
8,3077,567
1,043,329
1,523,726
Contacts 2010
36,721470,060
28,6103,821
1,000,460
1,539,672
34PRONACA listens to its clients and consumers.
QUALITY AND SECURITY
analyses guaranteequality and food safety of
our products.
850,815 certificationssupport
productive processes at PRONACA.
84
Taking quality food to Ecuadorian homes is a commitment always present throughout our production chain.
Prioritization of control systems
PRONACA has developed a standard process in order to ensure
that all of its products, besides being designed in agreement
with the likes and preferences of the consumer, are imbued with
quality and food safety. This process is cross-cutting to the entire
production and supply chain. In order to guarantee compliance
International industry standards demand this type of norms at
production facilities. An adequate system of good practices is
the first tool for biosafety and comprises a management model
that prioritizes process standardization, decrease of production
costs, compliance of productive parameters, food safety
culture, personnel training, preventive and corrective equipment
maintenance, process variable control, continuous improvement,
and environmentally-friendly production. This system allows
obtaining legal permits.
with national and international parameters in the food industry,
PRONACA maintains a system of technical cards for raw materials,
packaging materials, and finished products. All operational
centers have internal laboratories that perform quality and food
safety analyses.
Total # of analyses performedduring 2011 to guarantee compliance in quality and harmlessness in all PRONACA brands.
Number of total analyses
Animal nutrition (3 plants)Poultry (3 plants)PorkAdded Value - PifoOperational Center - GuayaquilRicePreservesEgg classificationHeart-of-palmArtichokePRONACA - ColombiaMardex
Total
463,67012,219
4,17160,24142,68315,360
137,983582
76,29713,92217,3876,300
850,815
Sector # of Certifications
Poultry incubatorsPoultry Reproduction FarmsPoultry Fattening FarmsTurkey FarmsPig FarmsIncubatorsProcessing PlantsDistribution Centers
311196
163
251
36
Food safety control
The food safety control process is defined in technical
scientific follow-up studies, which are process-strict and
delineated by HACCP plans (Hazard Analysis for Critical
Control Points, which is a system that identifies, evaluates,
and controls hazards that are significant for food safety),
which are shown per sector below:
INAEXPO heart-of-palm:
Heart-of-palm, whole or in preserves(canned or in glass jars).
Heart-of-palm sub-products in preserves (cannedand in glass jars).
Poultry:
Poultry Plant at Yaruquí:(1) Chicken slaughtering and cuts.(2) Turkey slaughtering and cuts, broilers, and roasters.
Poultry Plant at Valle Hermoso:(1) Chicken slaughtering and cuts.
Poultry plant at Bucay:(1) Chicken slaughtering and cuts.
Pigs:
Pig slaughtering and cuts.
Meat-product added value:
Fine pastes.Full-muscle products cooked in slow-cookers.Full-muscle products cooked in ovens.Raw frozen.Cooked frozen.
Artichoke:
Production of artichoke and mixed products – artichokes and heart-of-palm in jars and cans in heavy salt, normal and marinated.
Operational centers continue being certified and have
implemented an auditing system. During 2011, scores obtained
with the GMP norms at the Coast and South of Ecuador, were
highlighted.
As in proprietary PRONACA Operational Centers, raw materials,
packaging materials, ingredients and input suppliers, are required
to have certifications obtained in order to guarantee food safety
of products. Concerning seafood products, these suppliers have
certifications from:
In the case of external suppliers of preserve products, these have
certifications in:
GMP-certified plants (Good Manufacturing Practices)
manufacture products in an environment with high hygiene and
comply with International Norms such as those of the CODEX
ALIMENTARIOUS, a world-renowned food code.
Social balance
OMARSA: BRC e ISO2000:2005/ACC/EUROLEAF/GLOBAL GAP
PRODUMAR: Best Aquaculture Practices/HACCP/Global Gap
EXPALSA: HACCP/Global Standard for Food Safety/BRC/
Global GAP
SANTA PRISCILA: HACCP/BRC/Organic/Aquaculture
Stewardship Council
FACUNDO: HACCP
DC Guayaquil: 93% compliance
DC Cuenca: 94% de compliance
DC Montecristi: 92% compliance
Certifications at operational centers to-date.
Poultry
Op. Center Type of Certification Certification CriteriaCertifying Agency Validity of Certificate
Plant atYaruquí
Plant atSto. Domingo
Plant atBucay
HACCP (Hazard Analysis Critical Control Point)ISO 22000:2005Regulation GMP 3253 - Ecuador
HACCP (Hazard Analysis Critical Control Point)ISO 22000:2005Regulation GMP 3253 - Ecuador
HACCP (Hazard Analysis Critical Control Point)ISO 22000:2005Regulation GMP 3253 - Ecuador
Codex AlimentariusISO 22000:2005Regulation GMP 3253 - Ecuador
Codex AlimentariusISO 22000:2005Regulation GMP 3253 - Ecuador
Codex AlimentariusISO 22000:2005Regulation GMP 3253 - Ecuador
SGSSGSMSP
SGSSGSMSP
SGSSGSMSP
201220142014
201220142014
201220142014
Pork
Cold meats and Added Value
Op. Center Type of certificate Certification CriteriaCertifying Agency Validity of Certificate
Pork Plant(Frimaca)
ISO 22000:2005Regulation GMP 3253 - Ecuador
ISO 22000:2005Regulation GMP 3253 - Ecuador
SGSMSP
20142014
Op. Center Type of certificate Certification Criteria
Cold meats Pifo(Carnasa)
PRONACAGuayaquil(Ecuadasa)
Regulation GMP 3253 - EcuadorISO 22000:2005
GMP (Good Manufacturing Practices)
Regulation GMP 3253 - EcuadorISO 22000:2005
Codex Alimentarius
MSPSGS
SGS
20142014
2013
Certifying Agency Validity of Certificate
38
Social balance
Eggs
International
Livestock Business
Distribution Centers - Logistics
Op. Center Type of Certificate Certification CriteriaCertifying agency Validity of certificate
Carcelén Classifier
GMP (Good Manufacturing Practices) Codex Alimentarius SGS 2014
Op. Center Type of Certificate Certification Criteria
Heart-of-palm
Artichoke
HACCP (Hazard Analysis Critical Control Point)ISO 22000:2005IFS
HACCP (Hazard Analysis Critical Control Point)IFS
Codex AlimentariusISO 22000:2005IFS
Codex AlimentariusIFS
ECOCERTSGSECOCERT
ECOCERTECOCERT
201320152013
20132013
Op. Center Type of Certificate Certification Criteria
Puembo
Quevedo
Durán
GMP (Good manufacturing practices)
GMP (Good manufacturing practices)
GMP (Good manufacturing practices)
Codex Alimentarius
Codex Alimentarius
Codex Alimentarius
ICONTEC
ICONTEC
ICONTEC
2013
2013
2013
Op. Center Type of Certificate Certification Criteria
Puembo
Quevedo
Durán
GMP (Good manufacturing practices)
GMP (Good manufacturing practices)
GMP (Good manufacturing practices)
Codex Alimentarius
Codex Alimentarius
Codex Alimentarius
ICONTEC
ICONTEC
ICONTEC
2013
2013
2013
Certifying agency
Certifying agency
Validity of certificate
Validity of certificate
Certifying agency Validity of certificate
SUCCESS CASEPRONACA began the certification of Good Manufacturing
Practices based on the GMP Regulation for Ecuador N° 253
published in Official Registry 696, with the Ministry of Public
Health, on February 2008.
Joint timely work performed together with the National
Association of Food and Beverage Manufacturers made 2011 the
year in which the poultry, pig, value-added – Pifo, and heart-
of-palm plants were audited and achieved the certification.
PRONACA led this process and obtained 6 concurrent
certifications, making it the first company in Ecuador to fulfill
this legal requisite.
These certifications help us to better handle the post-control
criteria for registering products exercised by the Health
Authority, having Certificates recognized by regulating
agencies from other countries, and taking national regulation
and making it comparable with that of other countries.
ACHIEVEMENTS IN 2011
The processing plants for heart-of-palm and artichoke
obtained the highest level of certification for the IFS
Norm (International Food Standard), required for
international clients.
Poultry processing plants initially HACCP certified showed
improvement due to the ISO 22000:2005 certification.
COMMITMENTS FOR 2012
Work together on the ANFAB with the
MCPEC and the MSP toward a change in
norms to secure a change in legislation to
obtain the Sanitary Registry through GMP.
Define a measurement index as a
parameter in quality assurance.
Maintain the certification and audit
scheme at operational centers.
Quality and Food Safety
Ricardo VargasDepartment Head9, Quality Systems
The voices of PRONACA clients, in the form of complaints, mark an opportunity to ascertain their needs and provide follow-up solutions for problems that arise in time.
During 2011, we handled over 400 complaints, which were subjected to research and follow-up, which in turn allowed advising and training our co-workers in order to improve the quality of service.
“PRONACA listens to the voices of its clients”.
40
Animal Well-being
Within the standard that PRONACA implements, animal well-
being is a key factor. Strict care during the rearing stage,
transport and processing of chickens and pigs, achieves a
lowering of animal stress levels to a minimum. The company
controls rest time prior to processing. We comply with
standards that ensure care and treatment in production
sheds, loading and unloading ramps, population density,
location, cleaning time, amount of water and food, among
other factors that determine that the animal meat is healthy
Biosafety
PRONACA applies a strict Animal Biosafety and Well-
being System in every process in the rearing of pigs and
chickens with the purpose of ensuring the health and well-
being of the animals, which forms the basis for healthy food
production. Implementation of these measures guarantees
that animals that are reared in farms, remain healthy, which
ensures the health of consumers.
This procedure, cross-cutting to all operational centers,
implies restricting visits, use of appropriate working clothes
and equipment, mandatory showers prior to any entry,
washing of hands, constant health monitoring of all co-
workers, among various measures as to avoid any type of
contamination risk.
and of excellent quality. During 2011, PRONACA maintained
its animal well-being standard in the chicken and pig farms.
PRONACA has a research center for the pet food business
associated to the Pro-Can and Pro-Cat brands. The AVANT
Center allows performing research and development so that
pet food may be high quality food. This center fulfills and
observes good animal treatment parameters for dogs and
cats.
Pig Farming Center, Campo Lindo, Santo Domingo de los Tsáchilas.
782(thousands of US$) invested in human
development.
7,734 employment sources
nationwide.
co-workers withdisabilities
hired as of 2011.275
ORGANIZATIONAL DEVELOPMENT
Oversight in Human Rights compliance and the occupational health and safety of our co-workers, as well as outreach to communities where we are present, are essential factors of our sustainability management.
The performance of PRONACA as a signatory company of
the Global Pact has as its core principle respect for Human
Rights, in reference to Principles 1 and 2. Its performance is
focused on people above all, and it is because of this that
it develops policies that foster favorable conditions and
promote professional growth in its people.
During 2011, our company was consolidated as one of the
companies that generated 7,734 direct jobs. Distribution of
these jobs was done as follows: 32% in the Coastal region;
35% in the Highlands; and 34% in the Province of Santo
Domingo de los Tsáchilas. Business performance has
centered on compliance of current legislation.
Social Balance
PRONACA fosters teamwork in all of its co-workers.
42
PRONACA co-workers by type of job, contact, and region*
Total number of co-workers and average turnover
Region No. of persons %
Coast
Highlands
Sto. Domingo
Total general
2,453
2,670
2,611
7,734
32%
35%
34%
100%
Region Type ADM EXEC MIX OPER Total
Coast
Total Coast
Highlands
Total Highlands
Nationwide
Total general
FixedFeesOccasionalInternship
FixedFeesOccasionalInternship
FixedFeesOccasionalInternship
7319
291
770723
17265
7711,454
26556
1,541
21003
347004136800
44
5590
560
615355
0690
425914
0125
0
1,039
3,5190
1100
3,6291,433
0480
1,4814,952
0158
0
5,110
4,81110
1951
5,0172,545
24143
52,7177,356
34338
6
7,734
Number of co-workers and turnover
Número total de empleados que han dejado el trabajo durante el período reportado
Número y rango de empleados que han dejado el empleo durante el período reportado
Número total de empleados al final del período reportado
2010
11.03% Accrued 0.92% Average
1,461 persons total122 persons on average
Calculation with 6,082 persons on average/month
2011
11.23% Accrued0.94% Average
1,632 persons total 136 persons on average
Calculation with 7,175 persons on average/month
Total number of co-workers that have resigned during the reported period.
Number and range of co-workers who have resigned during the reported period.
Total number of co-workers at the end of the reported period.
Social Balance
*Data presented include INAEXPO co-workers.
Continuing education
The company centered its efforts and actions in the
development of its great human capital. Working alongside
its co-workers, it developed and implemented plans
that create added value for industrial processes and the
generation of quality professionals in Ecuador.
Through the area of Organizational Development, PRONACA
is executing the Training Plan, which has generated
alliances with Educational Institutions and first-rate Training
Providers. The training includes Postgraduate Studies
(Degrees and Masters Programs) that are executed with
the best universities and institutions, which insures the
development of the course of study of our co-workers.
During 2011, the company contributed with 70% and 90% of
the training costs of our co-workers.
Among the most noteworthy aspects of this endeavor is the
implementation of the Continuing Education System, which
is focused on the development of behavioral competencies
and techniques that seek the comprehensive growth of co-
workers personally and professionally.
Employment
Number of co-workers per level throughout Company operations at the end of the reported year.
Total number of hours invested in personnel training at each level of co-workers.
Number of training hours per year, per co-worker, and level.
Number of training hours per year, per level = Total hours per level/Total number of co-workers per level.
2010
OPE: 4,691 ADM: 2,335
EJEC: 46
OPE: 6,189ADM: 4,450
EJEC: 13
OPE: 15 h/hADM: 1.9 h/h
EJEC: 0.3 h/h
Total 1.7 h/h
2011
OPE: 4,918ADM: 2,409
EJEC: 44
OPE: 6,818ADM: 5,526
EJEC: 217
OPE: 1.39 h/hADM: 2.29 h/h
EJEC: 4.93 h/h
Total: 1.7 h/h
Continuing Education System; PRONACA co-workers.
44
PRONACA has valuable co-workers in various regions of
the country. Each one is the visible face of the company in
reference to the client and final consumer.
During 2011, PRONACA executed an Organizational Climate
and Culture Study along with a psycho-social survey that
reached 88% of the company’s population, thus achieving
majority participation and significant results for the planning of
co-workers’ well-being.
PRONACA executed a Development Evaluation (basically
measuring organizational competencies), with a participation
of 99% in administrative areas (this evaluation is not performed
at the operational level). We were able to ascertain proof
of a significant growth of 87% regarding competencies in
comparison with last year’s 86%. This indicator is vital in
measuring the positive impact of internal training.
Co-workers who have received performance evaluations
Percentage of men and women in the Company
Percentage of income per position
Percentage of income per level and gender
YearNo. of PersonsEvaluated
% of totalco-workers
% of Adm.and Exec. groups
20072008200920102011
1,3291,6332,0622,0122,117
21%25%31%28%29%
97%92%91%84%86%
Social balance
Age group Women Men Total general
Under 30Between 30 and 50 Over 50
Total
57581146
1,432
2,5943,411297
6,302
3,1694,222
343
7,734
Administrative Executive Mixed
2010 2011
10.65%10.57%
FEM FEM FEMMASC MASC
35.02%35.13%
0.36%0.34%
11.76%10.71%
0.55%0.23%
32.06%32.97%
100%100%
Year Administrative Executive Mixed Operations Total
2010 2011
45.67%45.70%
12.12%11.05%
10.15%10.27%
32.06%32.97%
100%100%
Operations TotalYear
Employment benefits
The company complies with current national legislation,
nonetheless, our co-workers have additional benefits such as
private health care and life insurance, savings accounts, which
is optional, the PRONACA store, and membership cards for
supermarkets and pharmacies.
The uniform is established as a benefit for the feminine staff,
sales, and messengers. The personal injury insurance policy is
for all organizational levels, depending on the valuing of the job
position.
Has the benefit
Does not have the benefit
OPE
Benefits2011
MIX ADM EXEC
Savings account
Company outing
Christmas basket
Uniform
Work clothes
PRONACA store
Supermaxi card
Fybeca card
Type of Job Position
OPE
Insurance 2011
MIX ADM EXEC
Life
Medical care
Personal accidents
International policy
OPE
Services 2011
Acknowledgments2011
MIX ADM EXEC
Meals
Transport
Medical Services
Best in operations
Seniority
Honorable mention
Golden Rooster
Type of Job Position
Type of Job Position
46
Inclusion of persons with disabilities Intent on the purpose of promoting and strengthening
observance of the rights of persons with disabilities,
PRONACA has worked towards achieving the equitable
inclusion of 275 co-workers with disabilities as of 2011.
PRONACA received on behalf of the Office of the Vice
President of Ecuador and of the Ecuadorian General
Foundation, a business acknowledgment for best practices
in social and labor reinsertion for persons with disabilities for
this period.
Human work designed to improve the lives of our co-workers
The company worked hard to gather socioeconomic data
that could provide information on co-workers and their
families. In order to do this, PRONACA created a nationwide
team of 12 professionals called the Social Work Team for the
three regions covering our operations. Our social workers
address issues shown below as part of a comprehensive
procedure focused on verifying the situation of families:
We covered 3 programs that have to do with the following
issues:
Home visits at the administrative and operational levels.
Permanent hires.
Data updating and demand for services that have to do
with the family’s surroundings.
Domestic violence.
Financial intelligence and family economics.
Entrepreneurship with our co-workers’ wives.
Results-oriented work is one of PRONACA’s keys for success.
Acknowledgment Category Awardees
Wood plaquesGlass plaquesGolden RoosterLarge Golden RoosterGlass plaquesGold plaquesSilver plaques
Best in OperationsHonorary mentionGolden RoosterBest teamwork / Operations centerBest operations centerAcknowledgment admin. and mixed years in serv.Acknowledgment oper. years in service
Total Awards
802120
74
209317
658
2011 Golden Roosters
The Golden Rooster is an initiative designed to acknowledge
the efforts of company co-workers. During 2011, we evaluated
the work of 658 co-workers. We evaluated:
The minimum time a co-worker must remain in the company
in order to reach this recognition is 5 years. This is an event
that recognizes seniority and is applied to every level in the
10, 15, 20, and 25-year categories.
GOLDEN ROOSTER
A recognition to the effort and commitment of many years
Teamwork.
Results-oriented work and service.
Communication.
Innovation and creativity.
Self-development and organizational knowledge.
Annual Golden Rooster awards ceremony.
48
Pronoticias’ (Pronaca news): 4 issues per year
with a total circulation of 7,500 magazine, i.e., one per every
co-worker.
The Pronoticias corporate magazine includes the bulletins
“My Plant, My Job”. Its pages depict the life of the organization
in general terms and those of certain operational centers
specifically.
It offers historical information on the company, answers
questions on procedures and internal practices, and
addresses pertinent issues of PRONACA.
Intranet: We reach close to 1,500 users.
Corporate Address for emails
(PRONACA Comunica): 1,500 users. Means for
delivering official information by the company, which seeks to
channel and centralize information on the various businesses
and areas.
PRONACA successfully implemented the digital display pilot
project in two operational centers of the company: at the Inverna
Building (head office) and at the Southern Quito Distribution
Center. Through this pilot, PRONACA seeks to standardize
message broadcast in the various operational centers with
updated and pertinent information for each center, keeping all
co-workers apprised of relevant issues.
The information is transmitted through the internet via
appropriate software and equipment.
During 2011, we reached approximately 750 persons between
both operational centers. Starting on 2012, this initiative will be
extended to other centers nationwide.
Internal Communications Other communicationtools
Internal communications system through digital displays, Inverna Building, Quito.
ACHIEVEMENTS IN 2011
The company drove the development of a School
for Internal Facilitators in order to capitalize on the
knowledge and experience of its outstanding co-
workers and thus multiply knowledge.
We held alliances with noteworthy institutions in the
country in order to lead processes for learning and
transfer of knowledge directed at specific needs of the
company, equipment, and persons.
We signed medium-term interaction agreements in
order to guarantee quality education with institutions
such as INDEG, ADEN BUSINESS SCHOOL, and the
Zamorano Pan-american Agricultural School.
PRONACA offered its executives the “Comprehensive
Updating Program” in which high-ranking specialists of the
company share knowledge and experiences with our top
executives in order to hone our management skills by using
the most advanced Human Development and Business tools.
“It’s Never Too Late To Learn” is a project PRONACA
continued for those co-workers who did not finish their
elementary or high-school studies.
COMMITMENTS FOR 2012
To work together on the ANFAB
with the MCPEC and MSP in order
to lobby for a legislative change to
obtain the Sanitary Registry through
GMP.
To define a measurement index as
a parameter for Quality Assurance.
To maintain the certification and
auditing process at operational
centers.
Lorena VallejoCost Accounting
Respect and equality for all of us working at PRONACA is the main
characteristic of this Company. For nine years I have developed
my activities normally since I have been given the necessary tools
here to do so.
PRONACA has granted me the opportunity to grow professionally
and demonstrate that a physical limitation does not hinder
intellectual growth.
Organizational Development
“Equality among co-workers is PRONACA’s priority”
Social balance
50
OCCUPATIONAL HEALTH AND SAFETY
The culture of risk prevention at the jobsite is the basis of occupational health and safety.
2011 was noted for work performed in risk prevention at the
jobsite. Within the area of Occupational Health and Safety,
PRONACA concentrated its efforts on the management of
incident control as the basis of accident prevention. The
Company executed safety promotion campaigns.
In order to decrease work-related accidents, PRONACA
implemented and promoted safe attitudes and behaviors as
an ongoing Company program. The result of this work was a
full year without major accidents or fatalities. The company
began observing in April the World Day of Occupational
Health and Safety.
As part of the new scheme of medical services, we
inaugurated the Bucay Regional Medical Dispensary, which
was followed by the same model for the Santo Domingo
Regional operations. PRONACA redefined and standardized
the Health Monitoring Plan for the control of work-related
diseases.
With the purpose of strengthening emergency readiness,
PRONACA trained brigadiers for the control of fires,
evacuations, and first aid. The company began the paperwork
for renewal of Regulations and Registration of Occupational
Health and Safety Committees.
Social balance
50 PRONACA co-workers have the necessary tools and instruments to minimize work-related risks.
Grain sorting machine, Rice peeler, Durán.
Creation of joint committees and subcommittees
(1) The accident rate (AR) is calculated based on accidents that generated a full workday of absenteeism, multiplied by a factor of 1,000,000, and divided by the co-worker hours worked, with data going to December.(2) The Rate of Occupational Diseases (ROD) is the number of cases of possible occupational diseases, multiplied by 1,000,000 and divided by the number of co-worker hours worked. (3) The Rate of Lost Time Days (RLTD) is the sum of lost days due to work-related accidents, multiplied by 1,000,000, and divided by the number of co-worker hours worked, with data going to December.
Joint Committees andSubcommittees
Occupational Health and Safety Committees and Subcommittees with a constituency of 50% of all co-workers.
Creation of the Central Committee and Subcommittee with the participation of co-worker representatives.
INAEXPO Central Committee.
2010
50%
1 Central Committee22 Subcommittees138 co-workers out of 4,833
1 Central Committee1 Subcommittee12 co-workers out of 825
2011
50%
1 Central Committee75 Subcommittees348 co-workers out of 5,539
1 Central Committee1 Subcommittee12 co-workers out of 907
Rates Results
Accidents (1)
Possible occupationaldiseases (2)
Lost time days (3)
Absenteeism (4)
2010
7.65
44.02
90.77
729.67
2011
7.51
32.16
109.33
855.8
124 AR during 2011, with 16,508,300 co-worker/hours worked
531 possible occupational diseases with 16,508,300 co-worker/hours worked
2010 – 2011 variation (12,098) -(14,128); absenteeism increased
2010 (12,098) - 2011 (14,128); absenteeism increased.
52
*The proportion is calculated by dividing promotion hours by the number of co-workers. Emergency preparedness implies the development of two annual drills.
Company / Hoursin training 20102011
Co-workersTotal promotion hoursProportion
6,4486,0210.96
6,6124,7580.74
Drills 20102011
Operational centersDrill complianceNº of co-workers evacuated% of co-workers evacuated
89%94%
9,525%74%
89%100%
11,295%87%
Health promotion
Areas of Investment
Industrial SafetyPPEIndustrial hygieneHealth
Total
(thousands of US$)
Health CardMedicinesHealth MonitoringHealth PromotionTotal
Total SSO
2010
29871322
109
1,143
3751
16710
264
1,407
2011
300841300
1,172
1,527
9410812528
355
Preventive health is a priority for the Company. Medical dispensary, Rice Peeler, Durán.
A+Sustainability Reports published by PRONACA.
is the score obtained by the16
associations form a working network of which PRONACA forms a part.
social and trade
is a member of the Global Pact in Ecuador,
CERES, and CEMDES.
PRONACA
DIALOGUE AND RELATIONSHIPS WITH STAKEHOLDERS
Social balance
Through specialized technical consultancy, PRONACA offers permanent advice to Integrated Farmers. Circle of Success Program.
54
PRONACA contributes to position Corporate Responsibility in Ecuador by maintaining positive relationships with all stakeholder groups.
During 2011, PRONACA worked together with the Global Pact
Network, The Ecuadorian Consortium of Social Responsibility,
(CERES), and the Business Council for Sustainable
Development of Ecuador (CEMDES), in order to strengthen
and drive corporate responsibility in Ecuadorian Society.
During 2011, PRONACA exchanged knowledge and shared
experiences with public and private sector companies,
fostering the importance of business sustainability. At
the same time, it maintained cooperation bonds with
representative organizations and associations of industrial
and business development.
Social balance
THE GLOBALCOMPACT
Generating positive relationships with the communities.
During 2011, the company worked hard at consolidating
good relationships with the various stakeholders from
the production chain. It excelled in managing joint work
with authorities and providing information on issues that
the company handles. In specific cases, visitors toured
operational centers from PRONACA operations.
Relationships with stakeholders were concentrated in the
three regional centers: Coast, Highlands, and Santo Domingo
de los Tsáchilas. PRONACA strengthened communications
channels with communities and specific stakeholders at the
local level.
PRONACA implements initiatives that seek for
the well-being of stakeholders and communities
with which it interacts.
Acknowledgments
Year Granting institution Award, acknowledgment, or certification
2011
CEMEFI, Mexican Center for Philanthropy
Líderes Ecuadorian Magazine.
General Rumiñahui Acknowledgment, Provincial Council of Pichincha.
CERES Ecuadorian Consortium of Social Responsibility.
CEMDES Business Council for Sustainable Development of Ecuador.
Global Pact, Ecuador Chapter.
Recognition to Exemplary Company in Latin America.
First place nationwide as a Socially Responsible Company.
Acknowledgment to the Company with Best Consumer Practices in the category of large national companies.
Acknowledgment for outstanding participation as part of the Board for 2010-2012.
2011 Elections, Presidency of the Global Pact Network,
Ecuador Chapter.
2011 Elections for the Presidency of the Global Pact Network for a period of 2 years.
56
Wellbeing and health of neighboring communities
The most relevant aspects of the implementation were as
follows:
PRONACA delivered updated information to the network
of integrated poultry farmers from Santo Domingo de los
Tsáchilas concerning changes on legal norms of the area.
The company held training workshops for small business
owners on proper feed processing.
Work with the Poly Ugarte Foundation in campaigns for
breast cancer prevention in communities of operations of the
Coast. PRONACA led an awareness-creation campaign on
the importance of having a timely medical checkup.
With the support of the Municipality of Bucay and of the
IESS (Ecuadorian Institute for Social Security), PRONACA
assisted 1,522 women aged 15 to 70. in collaboration with the
Municipality of Guayaquil and other private companies, we
assisted a total of 15,000 women.
PRONACA created medical brigades designed to prevent
diseases and promote health. Within this context, we
vaccinated 65 children under the age of two against polio
and the influenza virus.
The Company implemented a campaign in Bucay for
the prevention of alcoholism and drug addiction through
community speakeasies held with local zonal leaders.
PRONACA held two workshops together with the
Municipalities of Cumandá and Bucay regarding how to act
in the event of fire, and also on first aid.
Groups of co-workers participated in community group
efforts to clean up and paint several schools such as the
26 de enero de Casa Blanca, Matilde Esther and Martha
Bucaram schools, as well as the recovery and improvement
of the park at the neighborhood of Brisas de Santay.
The PROvoluntarios (PROvolunteers) brigade organized a
Christmas dinner for the elderly living in the area of influence
of operational centers in order to share the spirit of the
season.
5656
Visit from representatives of the Netherlands Development
Organization (SNV) from Mozambique, Zimbabwe, and The
Netherlands in order to learn about the Included Integrated
Program from PRONACA.
FUNDACIÓN SAN LUIS
114graduates and 10graduate classes.
7,747hours of
social volunteering.
2,686 hours of environmental
volunteering.
61 social-action institutions
involved.
18,986 persons received food through the San Luis
Foundation.
Social balance
Students from the San Pedro de Valle Hermoso Educational Unit, Fundación San Luis.
58
PRONACA is committed to education in the rural sector and to the delivery of food for the lower-income population.
EducationHuman education, use of technologies, early-age stimulation,
and training of small entrepreneurs, are the four areas
targeted by the educational model of the Fundación San Luis
at the Educational Units of San Juan de Bucay and San Pedro
de Valle Hermoso.
These centers, where PRONACA co-workers children attend
together with youngsters from neighboring communities,
offer high-level elementary and high-school education in rural
areas.
During 2012, the San Pedro de Valle Hermoso Educational Unit
will graduate its first group of students.
Information /EducationalUnits
Total Community PRONACA Graduates Promotions
San Juan deBucay
San Pedro deValle Hermoso
375
293
63%
68%
37%
32%
114
0
10
0
Social balance
58 Students apply their knowledge in computers at the computer lab at the Educational Units of San Pedro de Valle Hermoso and San Juan de Bucay
It’s Never Too Late to Learn
PRONACA offers the option of finishing elementary or high-school
for its co-workers who for whatever reason have not finished their
studies, through the “It’s Never Too Late to Learn” (Netpa—in
Spanish) Program.
Those who are part of this group on occasion attend classes imparted
by qualified teachers in order to conclude the studies that for
personal or family reasons were not concluded at their due time.
Food Bank
During 2011, in cooperation with the Archdioceses of Guayaquil,
the Fundación San Luis expanded its coverage of food donation
programs, through the Food Bank Program, geared to donating
products to underprivileged areas of Guayas.
During this year, this action benefited 9,559 persons of the Province
of Guayas.
Participants from It’s Never Too Late to Learn - 2011 Program
Highlands
Coast
Sto. Domingo
Total Netpa
199
152
77
428
Students from the It’s Never Too Late to Learn Program.
60
Volunteering During the last period, PRONACA created work teams called
PROvolunteers in order to manage activities of social and
environmental support led by the Fundación San Luis. The
Company highlighted reforestation programs in Quito and in
Guayaquil.
The Fundación San Luis works with charitable foundations
and institutions in a self-managing system that allows
During 2011, PRONACA donated a total of 45,086 kg of food that benefited 18,986 persons.
*Data from the Fundación San Luis including the Food Bank.
*Data Fundación San Luis, including the Food Bank.
Another important project is the personal support minimally-
disabled PRONACA co-workers offer other institutions and
foundations as part of their work. In this manner, these
organizations receive support in their tasks by generating
new spaces of employment for persons with special
capacities.
delivering food to more people, thus expanding its coverage.
Social balance
Product Total Kg. 2011
ChickenCold cutsPork meatRiceCooking oilEggsFish
Total
18,70810,2222,016
12,029874242994
45,086
CityNumber ofFoundations
%Coverage
PersonsBenefited
%Benefited
BabahoyoCayambeCuencaEsmeraldasGuayaquilIbarraMantaQuitoSanta Elena
Sto. Domingo
Total
2131441
4014
61 100% 18,986 100%
3%2%5%2%7%7%2%
66%2%7%
12065
139205
9,559180200
8.127150241
1%0%1%1%
50%1%1%
43%1%1%
Children from foundations associated to the Food Bank Program.
ACHIEVEMENTS IN 2011
Pronaca built four laboratories at each one of its
educational centers.
Today, the Educational Units of San Juan de Bucay
and San Pedro de Valle Hermoso each boast specific
facilities and equipment for their Biology, Chemistry, and
Physics courses, along with other audiovisual equipment.
428 co-workers participated in the Netpa Program.
COMMITMENTS FOR 2012
To deliver daily rations of nutritional food,
and expand coverage of the number of
persons attending the institutions with
which Fundación San Luis works.
To offer opportunities to improve quality
of life and help in solidarity by increasing
corporate volunteering to 8,000 hours.
To implement two academies in English
and Computer Science at each one of the
Educational Units.
To train 640 parents in issues related to the
integral rearing of children and youngsters.
Paúl BarreraProduction Supervisor
Avepica Incubator
My relationship with PRONACA began 14 years ago when I had
the opportunity to study high-school at the San Juan de Bucay
Educational unit. The children of PRONACA co-workers children
and the youngsters from the community attended this school.
I’m very thankful to PRONACA because, besides contributing
towards my studies, the company recognized my effort and
dedication. Through the auspices of the Fundación San
Luis, I was awarded a scholarship to attend the university at
the Escuela Superior Politécnica del Litoral, where I studied
Telematics Engineering.
Another one of the opportunities PRONACA has afforded
me is to be able to demonstrate my know-how and accrued
experience, since I now work at the Avepica Incubator Plant as
Production Supervisor.
Volunteering
“I am a great professional thanks to the support given to me by PRONACA”
62
64
Application Level A+ Third-party-checked Assured by Deloitte & Touche
STANDARD DISCLOSURES PART I: Profile Disclosures
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Reason for omission Explanation
Indicators GRI
1.1
1.2
Statement from the most senior decision-maker of the organization. Fully P. 6
65
Opportunities are mentioned but no key impacts or main risks of the business.
The information is not detailed enough, and it is not reported in two paragraphs, as recommended by the GRI.
G3 Content Index
1. Strategy and Analysis
Proprietary information
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Location of organization’s headquarters.
Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.
Nature of ownership and legal form.
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
Scale of the reporting organization.
Significant changes during the reporting period regarding size, structure, or ownership.
Awards received in the reporting period.
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Reporting period (e.g., fiscal/calendar year) for information provided.
Date of most recent previous report (if any).
Reporting cycle (annual, biennial, etc.)
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State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).
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Table identifying the location of the Standard Disclosures in the report.
Policy and current practice with regard to seeking external assurance for the report.
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4. Governance, Commitments, and EngagementProfile Disclosure Description Reported
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4.1
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4.3
4.4
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.
Indicate whether the Chair of the highest governance body is also an executive officer.
For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.
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Proprietary information
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Some info about shareholders is missing
The number of independent members are mentioned, executive members is missing
The specfic mechanism to provide such recommendations is missing.
Only the general governance body is mentioned, the rest of the members are not mentioned because it is strategic information of the company.
The way the board and government operate is reported, the mechanisms to provide with recommendations exist, but were not fully described in the report as it is the internal strategic procedure
66
G3 DMA Description ReportedCross-reference/Direct answer
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DMA EC
4. Governance, Commitments, and EngagementProfile Disclosure Description Reported
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Reason for omission Explanation
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Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).
Processes in place for the highest governance body to ensure conflicts of interest are avoided.
Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics.
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Pp. 55-56
Proprietary information
It is core financial information of the company, thus it is not likely to be revealed in a public document.
The information lies within the highest governance body, and as a company internal procedure, not reported.
The information lies within the highest governance body, and as a company internal procedure, not reported.
Proprietary information
Proprietary information
STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)
Aspects Economic performance
Market presence
Indirect economic impacts
Fully
Fully
Fully
Pp.11-13-16-18
Pp. 9-11-13-15
Pp. 19 -20-23
Disclosure on Management Approach EC
DMA EN
Aspects Materials
Energy
Water
Biodiversity
Emissions, effluents and waste
Products and services
Compliance
Transport
Overall
Fully
Partially
Fully
Not
Partially
Fully
Fully
Not
Fully
Pp. 35-36
Pp. 25-26-29
Pp. 18-25-27-29
--
Pp. 25-26-27
Pp. 32-36
Pp. 8-18-23-28
--
Pp. 24-29
Disclosure on Management Approach EN
The stakeholder groups are not clearly identified in the report
A complete description of the management of energy is not fully described, the amount of indirect energy consumption or the energy saved for instance.
There are not data about amount of composted waste, recovered waste, deep well injection or on-site storage policies or programs.
Pronaca has many stakeholders, with whom it has good communication and relationship. Nevertheless the mapping is not yet clearly stablished in the report, it is strategic information of the company
There are no measurements yet about the total amount of energy saved and the multiples of joules (Kw) for direct energy use are not specified, or for the indirect energy consumtion.
Pronaca is not present in sensitive areas of high biodiversity or near protected natural areas.
Programs or policies are not set up yet by the firm.
Information gathering still in process
Proprietary information
Not available
Not available
Not available
Not available
2013
2013
2013
Economic
Indicators GRI
67
G3 DMA Description ReportedCross-reference/Direct answer
If applicable, indicatethe part not reported
Reason for omission Explanation To be reported in
DMA LA
DMA SO
DMA PR
DMA HR
Aspects
Aspects
Aspects
EC5
EC6
EC7
EC8
EC9
Aspects
Employment
Labor/management relations
Occupational health and safety
Training and education
Diversity and equal opportunity
Community
Corruption
Public policy
Anti-competitive behavior
Compliance
Customer health and safety
Product and service labelling
Marketing communications
Customer privacy
Compliance
Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.
Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.
Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
Understanding and describing significant indirect economic impacts, including the extent of impacts.
Investment and procurement practices
Non-discrimination
Freedom of association and collective bargaining
Child labor
Forced and compulsory labor
Security practices
Indigenous rights
Fully
Fully
Fully
Fully
Fully
Fully
Fully
Fully
Fully
Fully
Fully
Fully
Fully
Fully
Fully
Fully
Fully
Not
Fully
Fully
Fully
Fully
Fully
Partially
Fully
Fully
Fully
Pp. 21-27
Pp. 21-33
Pp. 28-30
Pp. 31-33
Pp. 42-44
Pp. 55-56
P. 8
P. 8
Pp. 8-31
Pp. 18-31
Pp. 31, 35-39
P. 31
P. 29-33
P. 31
P. 31
P. 13
P. 31
Pp. 11-13
Pp. 11-13
Pp. 19-20-21
Pp. 43-46
P. 46
P. 69
P. 41
P. 42
Pp. 35-36-50
P. 70
Disclosure on Management Approach LA
Disclosure on Management Approach SO
Disclosure on Management Approach PR
Market presence
Indirect economic impacts
Disclosure on Management Approach HR
Specific actions or programs to fight against child labor are missing from the report
The company respects the law and has joined the Global Compact principles, but does not have a specific program or actions regarding child labor yet.
Not material
Performance Indicator Description Reported
Cross-reference/Direct answer
If applicable, indicatethe part not reported
Reason for omission Explanation To be reported in
STANDARD DISCLOSURES PART III: Performance Indicators
Economic performanceEC1
EC2
EC3
EC4
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.
Financial implications and other risks and opportunities for the organization’s activities due to climate change.
Coverage of the organization’s defined benefit plan obligations.
Significant financial assistance received from government.
Fully
Fully
Fully
Fully
P. 11
P. 11
P. 11
P. 67
Pronaca is working on the process on the regions it operates but with no information yet
Not available
2013
68
EnvironmentalPerformance Indicator Description Reported
Cross-reference/Direct answer
If applicable, indicatethe part not reported
Reason for omission Explanation To be reported in
MaterialsEN1
EN2
Materials used by weight or volume.
Percentage of materials used that are recycled input materials.
Fully
Fully
P. 26
P. 26
EN3
EN4
EN5
EN6
EN7
EN8
EN9
EN10
EN11
EN12
EN13
EN14
EN15
EN16
EN17
EN18
EN19
EN20
EN21
EN22
EN23
EN24
EN25
EN26
EN27
EN28
Direct energy consumption by primary energy source.
Indirect energy consumption by primary source.
Energy saved due to conservation and efficiency improvements.
Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.
Initiatives to reduce indirect energy consumption and reductions achieved.
Total water withdrawal by source.
Water sources significantly affected by withdrawal of water.
Percentage and total volume of water recycled and reused.
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.
Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.
Habitats protected or restored.
Strategies, current actions, and future plans for managing impacts on biodiversity.
Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.
Total direct and indirect greenhouse gas emissions by weight.
Other relevant indirect greenhouse gas emissions by weight.
Initiatives to reduce greenhouse gas emissions and reductions achieved.
Emissions of ozone-depleting substances by weight.
NOx, SOx, and other significant air emissions by type and weight.
Total water discharge by quality and destination.
Total weight of waste by type and disposal method.
Total number and volume of significant spills.
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
Percentage of products sold and their packaging materials that are reclaimed by category.
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.
Fully
Partially
Partially
Not
Not
Not
Not
Not
Fully
Fully
Fully
Not
Not
Fully
Not
Fully
Not
Not
Fully
Fully
Not
Fully
Not
Fully
Partially
Not
P. 26
P. 26
P. 27
P. 68
P. 68
--
--
--
P. 68
P. 68
P. 68
--
--
Pp. 25-29
--
Pp. 25-29
--
--
Pp. 25-29
P. 26
--
P. 68
--
Pp. 25-29
P. 25
--
Energy
Water
Biodiversity
Emissions, effluents and waste
Products and services
Compliance
The indirect energy is not measured specifically
The indirect energy is not measured specifically
The indirect energy is not measured specifically
The indirect energy consumption hasn´t been measured by the company yet
The energy saved is not measured specifically yet by the company
The company hasn’t developed yet a program to reclaim its products at the end of their life cycle
There haven’t been any measurements performed
There haven’t been any measurements performed
There haven’t been any measurements performed. Pronaca is plannig to measure its hydric footprint. There haven’t been any measurements performed. Pronaca is plannig to measure its hydric footprint.
There haven’t been any measurements performed. Pronaca is plannig to measure its hydric footprint.
There haven’t been any measurements performed, but Pronaca is plannig to measure this in the incoming years.
There haven’t been any measurements performed, but Pronaca is plannig to measure this in the incoming years.
There haven’t been any measurements performed, but Pronaca is plannig to measure this in the incoming years.
As there wasn’t any kind of spill, there wasn’t any measurement performed
As there wasn’t any kind of spill, there wasn’t any measurement performed
Pronaca hasn’t had any sanction
As mentioned before, PRONACA does not have any operation near high biodiversity areas, so any strategy or program for mitigate impacts were implemented.
As mentioned before, PRONACA does not have any operation near high biodiversity areas, so any study on red list species made.
Not available
Not available
Not available
Not available
Not available
Not available
Not available
Not available
Not available
Not available
Not available
Not material
Not material
Not material
Not material
Not material
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.
Not --
TransportThe measurement is still in processNot
available2012
EN30 Total environmental protection expenditures and investments by type.
Partially Pp 25-28
OverallThere are not measurements made on emissions treatment, or prevention programs.
Pronaca does not have a complete program to measure all its environmental impacts yet.
Not material
Indicators GRI
69
Social: Labor Practices and Decent Work
Social: Human Rights
Performance Indicator Description Reported
Cross-reference/Direct answer
If applicable, indicatethe part not reported
Reason for omission Explanation To be reported in
Performance Indicator Description Reported
Cross-reference/Direct answer
If applicable, indicatethe part not reported
Reason for omission Explanation To be reported in
Employment
Investment and procurement practices
LA1
LA2
LA3
HR1
HR2
HR3
Total workforce by employment type, employment contract, and region.
Total number and rate of employee turnover by age group, gender, and region.
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.
Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.
Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.
Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.
Fully
Fully
Fully
Fully
Fully
Not
P. 45
P. 42
P. 45
P. 69
P. 70
--
Labor/management relations
Occupational health and safety
LA4
LA5
LA6
LA7
LA8
LA9
Percentage of employees covered by collective bargaining agreements.
Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region.
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
Health and safety topics covered in formal agreements with trade unions.
Not
Not
Fully
Partially
Fully
Fully
--
--
P. 51
P. 51
P. 69
Pp. 50-51, 68
There isn’t any association or syndicate formed within the company
There isn’t any association or syndicate formed within the company
Not material
Not material
The data per region is missing
The work fatalities per region are missing, only a global record has been kept.
Not available
2013
Training and education
Diversity and equal opportunity
LA10
LA11
LA12
LA13
LA14
Average hours of training per year per employee by employee category.
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
Percentage of employees receiving regular performance and career development reviews.
Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity.
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in madevelopment reviews.
Fully
Partially
Fully
Partially
Fully
P. 43
--
P. 44
P. 9
P. 44
PRONACA hasn’t developed this kind of career ending managing programs yet.
Not material
Missing information about minorities or other groups.
No detailed information about minorities or other groups is given, there hasn’t been a measurement of these two aspects yet.
The training subjects are not specified, only the global amount of training hours are measured and reported, all subjects combined.
Not available
Not available
2013
2013
Non-discrimination
Freedom of association and collective bargaining
Child labor
HR4
HR5
HR6
Total number of incidents of discrimination and actions taken.
Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.
Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor.
Fully
Not
Not
P. 70
--
--
There are not workers associatedNot material
No measures to counter child labor have been developed yet Not available
2013
70
Social: Human Rights
Social: Society
Social: Product Responsibility
Performance Indicator Description Reported
Cross-reference/Direct answer
If applicable, indicatethe part not reported
Reason for omission Explanation To be reported in
Performance Indicator Description Reported
Cross-reference/Direct answer
If applicable, indicatethe part not reported
Reason for omission Explanation To be reported in
Performance Indicator Description Reported
Cross-reference/Direct answer
If applicable, indicatethe part not reported
Reason for omission Explanation To be reported in
Forced and compulsory labor
Community
Customer health and safety
HR7
SO1
PR1
PR2
Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor.
Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.
Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.
Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.
Partially
Not
Fully
Fully
P. 70
--
P. 35
P. 71
Security practices
Corruption
Indigenous rights
Compliance
HR8
SO2
SO3
SO4
HR9
SO8
Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.
Percentage and total number of business units analyzed for risks related to corruption.
Percentage of employees trained in organization’s anti-corruption policies and procedures.
Actions taken in response to incidents of corruption.
Total number of incidents of violations involving rights of indigenous people and actions taken.
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.
Partially
Not
Not
Fully
Fully
Fully
P. 70
--
--
--
P. 70
P. 70
There hasn´t been a study to determine activities with significant risk concerning compulsory labor
The personnel has been trained, but there is no percentage of the part that recieved the training.
PRONACA respects the current legislation and the Global Compact principles, and does not allow compulsory labor
It is still an ongoing process
The personnel has been trained, but there is no measurement of the percentage that recieved the training specifically.
No percentage is mentioned, PRONACA has joined the Global Compact and it is planning to make an internal analysis in the incoming years.
No percentage is mentioned, PRONACA has many training programs but it is just setting up the anti-corruption training.
Not available
Not available
Not available
Not available
Not available
2013
2013
2013
2013
Public policy
Public policy
SO5
SO6
PR3
PR4
PR5
Public policy positions and participation in public policy development and lobbying.
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
Fully
Fully
Fully
Fully
Fully
P. 70
P. 70
Pp. 30-34
P. 71
P. 34
Anti-competitive behavior
Marketing communications
SO7
PR6
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.
Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.
Fully
Fully
Pp. 31, 70
P. 31
Indicators GRI
71
Performance Indicator Description Reported
Cross-reference/Direct answer
If applicable, indicatethe part not reported
Reason for omission Explanation To be reported in
Customer health and safetyPR7 Total number of incidents of non-compliance with regulations and
voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.
Fully P. 71
Customer privacyPR8 Total number of substantiated complaints regarding breaches of
customer privacy and losses of customer data. Fully Pp. 34, 71
CompliancePR9 Monetary value of significant fines for non-compliance with laws
and regulations concerning the provision and use of products and services.
Fully P. 71
72
CONTENTSSUSTAINABILITY REPORT FINAL CREDITS
Procesadora Nacional de Alimentos C.A., PRONACA
Responsible for the Sustainability Report 2011: Christian J. Bakker, Corporate Responsibility Manager
Content Development Coordination: Ximena Almeida Cordero, Stakeholder Manager
Design and Photography Coordination: Xavier Noboa, Corporate Marketing Manager
EDITIONBenjamin Ortiz, Chief Executive Officer. BO Asociados - Quantum Alejandra Torres Onofa, Account Manager. BO Asociados - Quantum DESIGN AND LAYOUTNorlop JWT Ecuador
PHOTOGRAPHYXavier JácomePRONACA Photo Archives
PRINT - OUTEQUIGRUPO
For further information: www.pronaca.comComments: [email protected]
This sustainability report is printed on environmentally friendlyand non-toxic inks, in a limited edition of 50 copies, with a digital versionin order to avoid the consumption of resources affecting nature.
SustainabilityReport
Procesadora Nacional de Alimentos C.A. Los Naranjos N44-15 y Los Granados (593)23946700. Quito – Ecuador.www.pronaca.com