G4-12, EN33, HR11, LA15
With a purchasing practice that prioritizes the hiring of local and regional suppliers, AMAGGI seeks to contribute to the development of the regions where it operates.
The management of all AMAGGI suppliers is based on internal rules and procedures approved by the Executive Directory. All supply contracts have specific clauses regarding respect for human rights, such as the non-exploitation of child labor, degrading or in a condition analogous to slavery, and a specific anti-corruption clause.
The contracts also include clauses on labor and social security obligations that preserve the health and safety of the professional, such as the use of personal protective equipment (EPI) and training and awareness-raising practices on these issues.
To ensure compliance with these requirements, AMAGGI establishes partnerships only with suppliers that have an agreement or collective work convention. Currently, the greatest risk of occurrences of this nature is in Mato Grosso, where most of the company's units are located.
AMAGGI has a Supplies area, which is responsible for prospecting and requesting the evaluation of the company's suppliers. It is up to the area to research possible suppliers for the type of product and / or service requested by each area, as well as to contact these suppliers and request all relevant documentation. For the contraction of critical suppliers, AMAGGI adopts socio-environmental criteria that are evaluated jointly by the areas of Supply and Sustainability. To know the criteria and description of the required documentation requested for each type of product or service provided, click here. Concerned to grain suppliers, the evaluation criteria for acquisition is available in Promotion of sustainable agriculture.
The company also carries out the socio-environmental evaluation of the suppliers considered critical in its chain, through consultations with Ibama's public lists of embargoes and the slave labor of the Ministry of Labor and Employment, through the InPacto institute, and conference of all documentation proving agreement with the relevant legislation.
In 2016 there was a 17.5% reduction in the number of evaluations of suppliers considered to be critically important from a socio-environmental point of view. Part of this reduction was motivated by the lower need to purchase biomass, since in 2015 a strong work was done in the identification of new biomass suppliers and, in order to minimize costs with this type of input, purchases were made in larger volumes, generating inventories for the 2015/2016 and 2016/2017 harvests.
Last year AMAGGI supply area requested the evaluation of 424 suppliers considered environmentally or socially critical, according to environmental criteria, human rights, labor practices and impact on the community. Among the evaluated, 198 were not qualified, since they did not present all the supporting documentation pertinent to the type of activity developed. Furthermore, the contract was finished with four suppliers, one for missing documents for the contractual renewal; another for its inadequate working conditions during a routine inspection; and two for the absence of a valid operating license for the processing of recyclable waste.
One of the main difficulties in finding suppliers that can be approved in all the requirements demanded by AMAGGI is the suppliers´ non-regularization in the regulatory agencies. They often choose not to do this procedure because of the high cost and bureaucracy to get the license.
In 2016, aiming to engage non-qualified suppliers, AMAGGI, in an integrated work between the Sustainability, Supplies and Legal areas, developed a response letter with guidelines on the necessary procedures to become a qualified supplier of the company. This action is in the final process of validation and will be implemented in 2017, as part of the procedures of Socio-Environmental Evaluation of Critical Suppliers. The expectation is that in this way the company can stimulate its suppliers to comply with good sustainability practices.