Message from the Board of Directors
Copersucar proudly presents its Sustainability Report for the 2016-2017 and 2017-2018 crop years to its stakeholders. As well as being a register of the progress in management and introducing the achievements of the last biennium, this report highlights the company’s performance as a protagonist in sustainability, which is a prerequisite for the continuity of the business and a value generating factor for society as a whole today and in the future.
In a biennium characterized by several difficulties both in the domestic economy and the global competitive environment, Copersucar has demonstrated its capacity to overcome challenges and generate results.
During the 2016-2018 period, Copersucar’s leadership in global sugar trading was consolidated through its joint-venture Alvean and in the ethanol market through the activity of US-headquartered Eco-Energy, whose acquisition was finalized in 2017. Copersucar’s global presence in the two main markets in which it operates is also a reflection of the robustness of its position in Brazil, where it is a leading supplier of sugar to industrial clients and a leading ethanol trader.
We also wish to highlight the growth of our logistics business and its contribution to the company’s results. Our storage and intermodal transport capacity for sugar and ethanol, combined with operational excellence, is increasingly proving to be a competitive edge of our business model.
At the institutional level, the approval by the Brazilian government of the RenovaBio Program is particularly deserving of mention. This long-term public policy recognizes the contribution of biofuels towards meeting the country’s targets and commitments for reducing greenhouse gases. RenovaBio has been strengthening the presence of ethanol in Brazil’s energy matrix and could represent the required stimulus for new investments.
Luís Roberto Pogetti
Chairman of the Board of Directors
Message from the CEO
GRI 102-14
The two crop years between 2016 and 2018 were marked by high volatility in the sugar and ethanol markets. In the last cycle, sugar prices experienced a prolonged downturn, a drop of more than 30%, while ethanol recovered its competitiveness in relation to gasoline due to the new price policy in force in Brazil since July 2017. In such distinct scenarios, Copersucar was able to prove the efficacy of its management with the necessary readiness to meet market demands and ensure that positive results were obtained.
In 2017, Alvean – a sugar exporting joint venture created in partnership with Cargill – went into its third year of operations, consolidating as the most important global player in the sugar market. In Brazil, Copersucar leads in the industrial market with a 30% share.
In the fuel market, Brazil’s new pricing policy resulted in greater competitiveness for ethanol and reestablished free market practices. Ethanol also stood out for its climate contribution through the Brazilian government approval of the RenovaBio program.
Copersucar also reported impressive results in the logistics area between 2016 and 2018. Our terminals handled record-breaking volumes and provided logistics services to third parties, with volumes from non-partner mills now surpassing the raw crystal sugar handled for member producers.
The creation of a highly skilled and fast-paced team of professionals focused on reaching strategic targets has been of fundamental importance for our growth and will continue to be a strategic aspect of our management. As is attention to maintaining the health and quality of life of everybody who works at our terminals and corporate offices.
As it celebrates its tenth year in 2018, Copersucar S.A. is clear in its purpose. We connect the field to the rest of the world to take the benefits of our products to society as a whole while managing and sharing sustainable value. We remain steadfast on this path with solid business and strategic vision.
Paulo Roberto de Souza
CEO