Sindalcool Paraíba Partnership. Edmundo Coelho Barbosa

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1 Sindalcool Paraíba Partnership Edmundo Coelho Barbosa

2 Sumary Brazilian Ethanol Brazil The Brazilian Mills locations Paraíba State The Paraíba State Mills The ethanol cicle and the Global Warming Sustainability Security of Supply Human Rights Labour Standards Environment Natural Forest Preservation Anti Corruption Fair trade is not a bottleneck

3 Brazilian Ethanol Brazil

4 The Brazilian Mills Locations NORTHEAST 18% Brazil uses only 1% of the arable land area to produce ethanol CENTER SOUTH 81,7%

5 The Paraíba State Mills

6 Sustainability Level of climate & Green House Gas Emission savings o Research project about CH4 sequestration from vinhaça o Carbon sequestration project Ecological Corridor Pacatuba Gargau o Initiatives to reduce emissions in the field and in the industries

7 Sustainability Traceability of ethanol from Paraíba Feedstock: Sindalcool Associated produce 60% of your own sugar cane and they have supervision about other 40% SGS ethanol certification; Laboratories located in Paraíba Security in the ethanol logistic

8 Security of Supply I No bottlenecks from mill to port 45 km up to 60 km from Cabedelo, Paraíba 180 km from Suape, Pernambuco

9 No bottlenecks at port depots

10 Port Depots: Cabedelo 2 tanks X m3 = m3 01 tank = m3 Ethanol tank total = m3 Ethanol pipeline Tank to Ship 2 X 8 and 1 X 12 Outflow = 300 m3/h

11 Security of Supply II Seasonal variation in growth: 11 months Production July up Mar Exports: September December

12 Security of Supply III Dehydration capacity & accessability of EU grade UNDENATURED ETHANOL And that the quality of the goods are in accordance with the below specifications: ANALYSIS UNIT SPECIFICATION Water Alcohol Content Of Which C3 and C5 Of Which methanol Density at 20º DegC Acidity (as acetic acid) Appearance Total Chlorine as Chlorides Sulphur Acetone GC %w/w % v/v Mg/l g/l kg/m3 by weight Mg/kg Mg/kg mg/kg max ppm min. 99,8 max. 750 max. 4 max. 792 max. 0,005 Free from particles max. 2 max. 4 PH mg/100 ml Mg/kg µs/m 6,5-9,0 Gum Content(Solvente) Copper Content Conductivity Eletrical max. 5,0 max. 0,1 max. 500 METHOD ASTM E 203 ASTM D 5501 GC-method GC-method NBR 5992 ASTM D 1613 Visual D insp ASTM 4929B ASTM D GC-method ASTM D ASTM D 381 ACP-AES NBR Composite Ship's tanks Results

13 Producer Unit Sugar Rank by Sugar Cane Ton Cane Ton AGROVAL AGRO INDUSTRIAL TABU CIA USINA SÃO JOÃO DESTILARIA MACAIBA GIASA LDCOMMODITIES JAPUNGU AGROIND. S/A MIRIRI PEMEL UNA USINA MONTE ALEGRE Total Ethanol m3 Anidro Hidratado Total Last harvest Diference % % % 23% 14% 12% 20% 32% 19% 20%

14 Human Rights Our businesses support and respect the protection of internationally proclaimed human rights; We and our management personnel are not complicit in human rights abuses. Our policy and practices make sure about that.

15 The Ethanol Cicle to produced liters 2. Sugar cane growth adsorb 7.464kg CO2 1. Emissions in the sugar cane production 173kg CO2 3. Harvest and logistic emissions 2.940kg CO2

16 4. Industry emissions 3.140kg CO2 5. Distribution and motor emissions 1.520kg CO2 To supply this same amount of energy, the cycle of production and use of the gasoline it liberates 3.368kg CO2 DIFERENCE: Gasoline emissions 3.059kg CO2 more in the atmosphere

17 Labour Standards Standard on social issues & labour conditions NR 31 Law requires International Labour Organization Annual Contract Terms Agreement Workers and Ethanol Producers

18 Labour Standards 17 years without work stopped Sugar Cane worker salary level: US $ 754 / month Teacher fundamental school educational level: US $ 251 / month Shopping and magazine worker: US $ 427 / month

19 Labour Standards The Sindalcool Associateds businesses incentive the freedom of association and the effective recognition of the right to collective bargaining; We can't pactuated with of The child labour was all forms of forced and abolished in our businesses 20 compulsory labour. We year ago; work to the elimination of We work to the elimination of any slave labour. discrimination in respect of employment and occupation.

20 Environment Our businesses support a precautionary approach to environmental challenges; We can show our initiatives to promote greater environmental responsibility; and We encourage the development and diffusion of environmentally friendly technologies. We encourage the Agenda 21 in every area in which human impacts on the environmen

21 Natural Forest Preservation Conservative project by Japungu Agroindustrial and Destilaria Miriri leadership with Sindalcool and International Conservation coordination Contacts Sonal Pandya ( s.pandya@celb.org ) Senior Manager Corporate Climate Leadership CELB- Conservation Investments / Conservation International

22 Anti Corruption The Sindalcool Associateds Businesses work against corruption in all its forms, including extortion and bribery. C/index.html

23 We are favorable to five practices to stay compliant with anti corruption laws 1. Never handle, pay or authorize payment of bribes. Speak out and denounce if you hear of colleagues involved in bribery deals or otherwise corrupt practices. 2. Choose trustful partners because your company will be made responsible and penalized for "outsourced corruption" such as bribery or the like. 3. Be aware of your representative role when personally dealing with government officials. 4. Be extremely careful in offering gifts, voyages or any kind of advantages to government officials. They are in most cases not allowed to accept any personal rewards, so obey the cerimonial protocols and the legislation. 5. Keep in mind that penalties may be very severe with terms of imprisonment and fines up to 200% of the potentially generated business due to corrupt practices.

24 Is it fair trade a bottleneck? "The world is a dangerous place to live... Not because of those who do evil, but because of those who stand by and let evil happen ". Albert Einstein Fair trade is an organized social movement and market based approach to alleviating global poverty and promoting sustainability.

25 Take an active part The move to adopt Solidary Trade was based on the view that this is a mean of improving the society that we live in. By creating income in communities excluded from the formal labor market many of which are located on the outskirts of major cities we take an active part in this process.

26 Social environment: more action is needed We believe that, as consumers, we have the power to change people s lives by a simple buying decision. There are many activities that do not depend on our availability or the demands of becoming involved in volunteerism. Asking for an invoice is one of them. Avoiding purchases from companies that do not respect the consumer and the environment is another.

27 Economic Sustainability Business: Future market contracts like BM&F more ᐄ plus ETBE international market prices curve Seasoning / Fertilizers / Bio fertilizers / Sewer silt Commodity dependence is a key factor in the economies of a significant number of developing countries with more than 50 developing countries depending on 3 or fewer commodities for over half of their export earnings. Many commodities are experiencing their lowest price for many years and this is resulting in immense hardship in these producing countries.

28 Conclusions Ethanol from Paraíba Good logistic Business Transparency Sustainability Security supply Environment: best practices Having community of interests and responsibilities Fair price: The consumer pay more to solve problems

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