Engaged in the debate on the theme, AMAGGI has been evolving in its Climate Change Mitigation and Adaptation Program, which involves all its business areas, each one with its risks and opportunities.
Thereby, the first step in setting reduction targets and adaptation projects is to identify opportunities and challenges through emission inventory, as well as in-depth knowledge of the impact of climate change on the business.
To do so, in 2013 AMAGGI took one of the most important steps in the management of its emissions, participating in the pilot project to improve the methodology of the GHG Agricultural Protocol to calculate greenhouse gas emissions. The company thus established itself as a pioneer in the use of the tool for the agricultural sector.
Since then the company annually updates its emissions inventory. From 2015 the document began to be checked by an accredited institution, receiving the Gold Seal of the GHG Protocol. The inventory includes all emissions from administrative, agricultural, port, factory, warehouse, and power generation activities. It considers all stationary and mobile combustion emissions, fugitive emissions, effluents, agricultural emissions through the use of nitrogen fertilizers, lime and urea, electricity consumption, logistic distribution and business air travel.
Below is the comparison of 2015 x 2016 emissions; the data for 2015 have been adjusted and will be submitted to the GHG for updating the Public Emissions Register. In 2016 there was an updating of the methodology regarding the accounting of agricultural emissions and changes in land use, as well as the insertion of new scopes for the accounting of emissions, such as reforestation for biomass production and new logistic routes.
Emissions of greenhouse gases (tCO2e)
Main variations from 2015 to 2016 refer to the 47% increase in fertilizer consumption in soybean and cotton production; the 16% reduction in energy consumption in the grains crushing from Itacoatiara and Lucas do Rio Verde factories; and reducing road and rail transport emissions in 35%, even with the inclusion of fertilizer and cotton transport.
Details and justifications for variations of each scope (1, 2 and 3) as well as biogenic emissions and removals (carbon sequestration) can be accessed at this link.
In partnership with GVces in the TeSE initiative, AMAGGI, through the methodology for valuing ecosystem services (Devese 2.0), developed the study called "Quantification of the ecosystem service of global climate regulation resulting from actions to preserve native voluntary areas and compliance with Brazilian legislation". The study concluded that, through the preservation of the total native forest areas maintained by the company, the emission of approximately 57 thousand tCO2e was avoided in one year. For the evaluation of this externality, the Social Cost of Carbon (CSC) was used - which considers the estimated costs of the probable impacts for adding one ton of carbon to the atmosphere - and reached a value of approximately R$7 million in the year. That is, an approximate value of the costs that would no longer be spent compensating for adverse impacts of climate change on society if such areas were deforested.
Considering the Brazilian representativeness concerned to agribusiness, AMAGGI understands that it is important to quantify the externalities of actions to preserve native forests, whether voluntary or legally compliant, that generates positive impacts in terms of global climate regulation. This is because the company understands that preservation, even if mandatory, provides a benefit to society, and this should be configured as a competitive international trade differential.
In the implementation of the small hydroelectric stations Divisa, Segredo and Ilha Comprida, located in Sapezal city, it was developed a Clean Development Mechanism (CDM) project strategy, which provided the generation of carbon credits of 106,560 tCO2e. These credits remain in AMAGGI possession and are available for sale, when it is opportune. More information about the projects is available on the United Nations Framework Convention on Climate Change (UNFCC), projects 9540, 10047 and 10022.
Known and analyzed the emissions inventory, it starts an analysis of the impact of climate change on AMAGGI activities, from agricultural and cattle production to energy generation, going through fluvial operations and distribution.
Thus, understanding how their operations cause impacts to the climate, both positive - for the preservation of forest areas - and negative - for the emission of greenhouse gases from their operations and in the value chain -; and also how climate change influences AMAGGI activities, the company has established the following plans, actions and commitments:
Emission Reduction Plan
As the company is expanding - illustrated by the increase in the number of warehouses, capacity expansion at the Lucas do Rio Verde plant, and increased grain outflow - its absolute emissions are expected to increase organically.
So, after evaluating the results of the inventories of previous years and projections of greenhouse gas emissions for 2025, with the growth and efficiency variables in the different business units, AMAGGI, through initiatives to improve efficiency in operations, expects to reduce its relative greenhouse gas emissions by 5% up to 2025 compared to 2015 (Scope 1 of the GHG Protocol inventory).
This number is being worked on in actions and projects in the company's business divisions, taking into account the most relevant and impactful issues for the business.
It is important to emphasize, however, that the premises and methodologies for calculating the emissions inventory are being improved every year, especially by the GHG Agricultural Protocol. Thus, AMAGGI reduction commitment can be strengthened or modified as a better understanding of the most impactful emissions and also of a larger amount of data is served, which will serve as inputs to improve the technical justification for the calculation of emissions.
Anyway, the company's premise is that its goals are always tied to its objective, which is to ensure efficient carbon management in operations and the value chain, with the least possible negative impact and maximizing the positive impacts.
Learn about the strategic and operational efficiency actions of each AMAGGI business division to mitigate emissions and contribute to achieving the reduction target, clicking here.
The change in the boiler process at Itacoatiara plant saved R$340,000 / year and stopped issuing 143.5 tCO2e / year.
The change in the supply for the boiler at Lucas do Rio Verde plant boosted a new alternative fuel source, which made it possible to avoid the use of 134 thousand tons of firewood and the emission of 4,700 tCO2e in scope 1.
Climate change adaptation plans EC2
In relation to climate risks, AMAGGI establishes adaptation plans so that its operations are perpetuated and the impacts on the operation are minimized.
Thus, in 2015 the company initiated a pilot project in the study of the seed production process, using the Climate Change Adaptation Tool developed by GVCes in the Companies for the Climate Platform (EPC). In 2016 the study was expanded to AMAGGI Agro, and the same methodology was implemented in AMAGGI Logistics, since the activities of these business areas suffer direct climate influences.
In 2016 several meetings were held with people responsible for the areas, in order to discuss and measure, with the risk and impact tool help, the activities and actions of the company in the short, medium and long term, as well as the influences of the climate changes over operations. The results of the risk identification and adaptation plans implemented by AMAGGI in its operations and in the value chain are presented below.
|Climate monitoring to carry out planting and harvesting in the best season;
|Use of no-tillage technique, which does not revolve the soil and increases the carbon fixation in it;
|Use of brachiaria and other coverages in the off season to reduce soil exposure, maintaining its physical, chemical and biological quality, in addition to increasing resistance to adverse climatic conditions as well as soil biodiversity;
|Recovery of degraded areas, for example, by planting stylosanthes (fodder legume), which improve soil quality;
|Crop-livestock integration (see table).
At Itamarati Farm, in the municipality of Campo Novo dos Parecis, a pilot project of integration between agriculture and livestock was started in 2013, in an area of 240 ha. Due to the soil quality, in this area it was not possible to plant a second crop, then the Brachiaria ruziziensis planting experiment was started. The project was expanded to other pasture areas, currently covering 840 ha. Its first results show a drop in production costs, lower use of pesticides and fertilizers, and increased productivity from 60% to 70%. There is an improvement in the soil profile, with increased rooting and biodiversity, and reduction of natural enemies.
Products Carbon Footprint
The Carbon Footprint, technically known as Product Life Cycle Analysis, presents the greenhouse gas emissions from each stage of production, from the acquisition of the raw material to the delivery of the product to the customer, involving the entire chain of production value. It provides important information for managing emissions internally to the company as well as to its suppliers and customers.
In the calculation of AMAGGI Carbon Footprint, the emissions and removals of the transportation stages of the agricultural inputs were considered; production and consumption of agricultural inputs; change of land use; as well as the production and consumption of fuel and biomass used in warehouses and transportation from the farm to the international port.
|Maritime logistics accounts for 55% of greenhouse gas emissions, followed by 34% of emissions from the crop.
|AMAGGI has one of the lowest diesel consumptions in agricultural production, due to the scale of the machines used and, consequently, to its productivity.
|AMAGGI consumes one of the smallest amounts of energy and nitrogen fertilizers in the group of countries due to the use of high technologies and good agricultural practices.
The comparison showed that AMAGGI export operations emitted 14% less CO2e than the average companies in Brazil, and almost 20% less than the United States average for delivering grains at the same destination.
|The road logistics modalities in Brazil are one of the biggest impacts on greenhouse gas emissions, accounting for 57% of emissions.
|The agricultural stage has the second largest emission, representing 22%, followed by the production of agricultural inputs, with 17% of the emissions of AMAGGI corn Carbon.
|In Brazil the climate is conducive to the manifestation of pests, which increases the demand for pesticides. This demand is lower in countries with colder climates.
|The average of the Brazilian and the Hungarian productions present the highest emissions of the studied group, being 40% above AMAGGI´s.
The final comparison between the countries showed that the AMAGGI has a performance equivalent to the one in France, with the lowest total emissions of the group studied, and also shows the lowest emission in the agricultural phase.