Bonsucro Microsite :: Meeting sustainable sourcing goals

Using Bonsucro credit trades to power sustainable production

Major global companies are using Bonsucro credit trades to support the production of sustainable sugarcane and advance their sustainable sourcing goals - without physically buying sugar. By purchasing a Bonsucro credit, which is equivalent to one tonne of sugar or ethanol, they also pay a small fee to Bonsucro ($1.30/per credit), half of which is invested directly in on-the-ground initiatives to help farms and mills adopt more sustainable practices. In particular, the funds are directed to Bonsucro’s Accelerator Programmes (see pages 9-11) in Thailand and India, where we are taking action to accelerate progress by reaching more smallholder sugarcane farmers and building their capacity to address key social and environmental challenges.

Members purchase credits from Bonsucro-certified mills or through an intermediary, such as commodity trading specialist ACT commodities or a Bonsucro member trader. In return, companies can promote their involvement with sustainable sugarcane production, helping to enhance their reputation and engage stakeholders with their corporate responsibility commitments. In 2018, global companies including PepsiCo and Shell took advantage of the Bonsucro Credit Trading System to strengthen their sustainable sourcing activities.

Bonsucro credit trades complement physical sales of Bonsucro-certified sugar, representing an important additional way for us to help advance the pace of change on the ground and hasten progress towards positive impacts for producer communities and sugar supply chains.

Nicolas ViartDirector, Standards & Innovation, Bonsucro.

Promoting sustainable sugarcane production

Sugarcane in São Paulo State, Brazil. Photo: Joe Woodruff / Bonsucro

PepsiCo: Putting sustainable agriculture at the heart of sourcing

PepsiCo’s is aiming for 100% of its cane sugar to be sustainably sourced by 2020. By focusing on building the capacity of farmers and raising their awareness of Bonsucro certification, the company sourced 58% of its cane sugar sustainably in 2018, up from 34 % in 2017. The mechanism provided by credit purchases provides the opportunity to establish resources that can be directed to sourcing regions to address systemic challenges and create a pathway towards sustainable production of sugarcane.

PepsiCo believes in the vital importance of collaboration in understanding and addressing the systemic challenges present in some parts of the cane sugar industry It is only by working together, through focused programs, that we can develop long-term solutions that improve social and environmental outcomes and support the inclusion of smallholders in our supply chain. We’re committed to working with Bonsucro members precompetitively to increase the supply of sustainable volumes at the point of origin and boost our positive impact.

Natasha SchwarzbachSustainable Commodities, PepsiCo Global Sustainability

Shell: Working on meeting sustainability goals

Shell increased its Bonsucro credit purchases in 2018 as it progressed towards its goal of having 100% certified sugarcane ethanol by 2020. One of the groups supplying Bonsucro credits to Shell is Adecoagro, which owns 3 sugarcane mills in Brazil, which benefit from resources obtained from credit operations to strengthen its sustainability activities, improve its operations and invest in the latest best practices.

Our partnership with Shell strengthens our commitment to continuously improve our processes, taking care of the environment and our employees, supporting regional economies and generating positive results for stakeholders.

Juari FariasHealth, Safety and Environment Manager of Adecoagro

We purchased a larger quantity of Bonsucro credits in 2018 in order to meet our increasing target of 100% certified cane ethanol by 2020. We have always supported the approach of using credits as a good way to support farmers and mills on their sustainability journey.

Michelle MortonNew Fuels Sustainability Manager, New Energies at Shell International

A mill perspective

Brazilian mill Usina Sonora was the single largest seller of Bonsucro Credits in 2018, and harnesses the credits as an additional source of income for multiple improvement projects. These include improving production processes, taking further steps to address its environmental footprint, raising health and safety standards or investing in community projects. All these activities strengthen its adherence to the Bonsucro Standard.

The more businesses recognise the value of Bonsucro credit trades, the more we’ll be able to raise our performance, protect the environment and improve the livelihoods of mill workers and farmers. We aim to set a leading example for other mills to follow in the coming years.

Iraci OliveiraUsina Sonora

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