You are using an outdated browser. Please upgrade your browser to improve your experience.

Our continuous commitment to reporting on Valagro's sustainability

For around 40 years, Valagro has been helping farmers get the best out of their production by optimising the use of resources and production inputs with one goal: to create a sustainable future for people and nature. This objective can only be achieved with a basic coherence that characterises not only the solutions offered to the global market, but also the production processes and corporate culture.
The Social and Environmental Report (or Sustainability Report) is a useful tool that helps us describe, year after year, our consistent and constant commitment to sustainability. It is an act of responsibility towards the wider community we operate in, and with which we hope to cultivate a culture that is ever more respectful of the environment and attentive to the community's needs.

The data illustrated below refers to Valagro SpA's environmental, economic and social results. 

The Valagro Group in numbers


Our activities mainly contribute to these UN Sustainable Development Goals:


Our environmental impact

Introduction

As indicated in the previous versions of the Social and Environmental Report, to correctly interpret the indicators relating to the environmental impact of Valagro SpA's activities we need to consider the relationship between these indicators and the value of production.
While the three-year period 2015 – 2017 recorded a significant increase in production, in 2018 there was a decrease in production due to stock balancing. However, as illustrated below in the Report, the company has undertaken numerous initiatives to continue improving the environmental impact indicators. A more detailed analysis is available in the EMAS declaration - Eco - Management and Audit Scheme available on the Valagro website on the Certifications page.

Featured

Waste

Compared to the quantity of waste produced – which includes all the waste generated at the Atessa plant – there was an increase in this indicator in 2018 with respect to the reduction in production volumes.

As reported in the EMAS Declaration, 539.06 tonnes of total waste were non-hazardous waste. The increase in this waste was due to an agreement with two raw material suppliers, which in 2018 delivered the materials in big bags on wooden pallets, while in the past the wooden support was not present. The increase in hazardous waste was due instead to extraordinary cleaning of tunnels and tanks for the liquid and chelate plants, along with peak production at the liquid plant, which led to an increase in the resulting sludge.

Metal Emissions

As for the abatement of emissions into the atmosphere, in 2018 the quantities of metals emitted per tonne of production decreased constantly, thanks to continuous improvements to the plants' bag filters which have been carried out over the years. Triboelectric detectors were installed at all the chimneys where dust is present, to improve checks on any leaks from the filtering sleeves. Furthermore, the quantities of metals emitted are considerably lower than the authorised values: in all the checks carried out by an external laboratory, the authorised limits were never exceeded.

VOS – Volatile organic substances (II – III – IV)

Regarding emissions of volatile organic substances (phenol, isobutyl alcohol and isobutyl acetate), it is important to note that the value for these substances is influenced by the Production Mix.  
What is particularly clear in 2018 is the improvement of Classes II and IV compared with the previous year.

However, even for Class III substances the trend is positive because, despite the slight increase in this value, there is an overall decrease in VOS III starting from 2015-16, due to the supply of a purer raw material.
For all classes, the values are always well below the values authorised by law.

Thermal Energy

In the chemical industry, heat is an indicator of the technological level of production plants. A reduction in heat consumption indicates the overall effort of the entire company to create "low carbon products", i.e. products with sustainable raw materials as a result of high research activity and which can guarantee results with positive effects on the external environment.
In 2018 there was an increase in the thermal energy used in the company; this is due to two main factors, the start-up of the cogeneration plant and its continuous operation, and the production during the entire year of a set of particularly energy-intensive products (from a thermal point of view).
However, as illustrated below in this report, it must be considered that the cogeneration plant, in addition to heat, has allowed us to produce about 50% of the electricity then used in the plants without any environmental impact ("carbon free").

Water withdrawal

In line with its close attention to the use and sustainable management of resources in agriculture, Valagro considers water an essential asset and has always been committed to limiting waste in production processes.  

Although 2018 recorded a slight increase (+1%) compared with the previous year, there was a positive trend in water withdrawal throughout the three-year period. Following a water rationalisation objective, between 2015 and 2018 discharges were zeroed, in line with objective 5 of the QEHS improvement programme 2018-2021 (found within the EMAS). Parameter G4 EN 22 shows the quantities of rainwater sent for purification and the relative indicator. The amount of rainwater sent for purification is decreasing, since most is reused in production. In 2017 and 2018, all the rainwater was reused.


In the foreground: our greenhouse gas emissions

According to the recent report "Climate change adaptation in the agriculture sector in Europe" published by the European Environment Agency (September 2019), European agriculture is seriously threatened by the negative effects of climate change. Agriculture accounts for about 10% of all greenhouse gases in the EU, the Report recalls, a fact that highlights the commitment required from the entire sector to help achieve the goals of reducing greenhouse gas emissions by 2030 and 2050.

In line with the focus on the negative effects of climate change, over the years Valagro has implemented a series of initiatives aimed at containing greenhouse gas emissions, as demonstrated by the values linked to producing its solutions, which are well below the declared values for other consumer products.

0,20 tonnes of CO / tonne of product

= 200 kg / 1,000 kg of product

 

Reduction of CO₂ emissions

Climate change is the main challenge that needs to be solved in the coming years. The basic cause is the GHG emitted into the atmosphere by human activity. Cutting emissions by adopting sustainable technologies and more responsible lifestyles forms the basis of the strategies national governments are gradually adopting all over the world. Valagro also considers this development essential to reduce the low environmental impact of crops and guarantee a low carbon footprint for the crops they are applied to.

With regard to the total quantity of greenhouse gases (GHG) emitted by Valagro, we can see that the values increased compared with 2017, but decreased compared with 2016. In particular, the values for flights and electricity consumption (produced outside the organisation) decreased, while the share of GHGs for the use of Natural Gas increased. This is due to a specific corporate strategy aimed at increasing energy efficiency (through the use of cogeneration) and reducing emissions through reorganisable services (teleconferencing instead of international travel, when possible).  

Thanks to the cogeneration plant, Valagro SPA's production facilities use both electricity and heat to produce many key products. The installation of two gas turbines has made it possible, on one hand, to produce electricity used throughout the plant and recover heat from exhaust gases to use it directly in production plants. This has made it possible to improve energy efficiency and reduce GHG emissions by around 530 tonnes in 2018 (4,370) compared with 2017 (4,900).


Our manufacturing facilities abroad

India

The project to revamp the hydrosoluble plant at the Indian site in Pashamylaram began in May 2017 with the process design phase, and ended in March 2018 with the start-up of the plant and the first production of NPK (Master line). The project’s main interventions, which involved restoring and modernising an existing production line, were:

  • extraordinary maintenance of recovery equipment
  • the process design of new equipment and machines to replace existing ones or to supplement the line
  • the process design of the drive scheme, instrumentation and automation
  • construction of surrounding civil works;
  • design of the new dust suppression system
  • procurement, installation, start-up.

The line has a capacity of 6000 t/year, and is divided into 3 main sections: mixing, packaging and dust suppression.

The installation of the dust suppression system has allowed a better work environment inside the shed, free from micro-dust, with a significant positive impact for line workers and the external environment.

Norway

The project to revamping the algae extraction plant in Norway, at the Kristiansund site, began in 2018.

Two venturi scrubbers were installed to eliminate odours and dust from the extraction and drying sections.

An initial environmental impact study was carried out: the environmental consulting company undertook odour measurements in Algea (Kristiansund), performed calculations for the dispersions, and finally created a map of odours in the surrounding area.

The dispersion calculations show that since the scrubbers were installed, the odours are lower than the authorised limit of 2 ou E/m3.

As regards the Bronnoysund site, work has been done to reduce the external impact of the noise from the manufacturing processes. Specifically, mobile sound-absorbing panels have been installed to reduce the noise from the mill area, where the seaweed is ground; furthermore, in the first treatment area for freshly harvested seaweed, where stones and shells are removed, a fan was moved from outside to inside the shed. The fan was then suitably insulated to reduce the impact on occupational safety.

Brazil

In 2018, the installation of the new acetic acid dosing line with a dedicated pump was completed, improving the aspects of process safety related to handling this raw material.


Special Projects:

The Environmental Product Declaration (EPD) project

The EPD (Environmental Product Declaration) project was launched in 2017 and provides verified, transparent and comparable information on the environmental impact of the product life cycle. Within the project, 135 products were examined according to all the environmental impact categories, namely: climate change, ozone layer reduction, acid rain, freshwater eutrophication, marine eutrophication, human toxicity, photochemical oxidant formation, particulate formation, terrestrial ecotoxicity, fresh water ecotoxicity, marine ecotoxicity, ionising radiation, occupation of agricultural land, occupation of urban land, transformation of natural soils, depletion of water resources, depletion of metals, depletion of fossil fuels.

The study, which uses the Life Cycle Assessment methodology, focused on all phases of the life cycle, starting from the use of raw materials, through production processes and product packaging, to the company gates. In the coming years, we also expect to implement studies into the impact of using products in the field. In this way, we will be able to obtain a complete analysis of the product life cycle that will let the company make improvements to the various phases analysed.

Among the work already carried out to limit products’ environmental impact, it is particularly worth mentioning the decision to continue replacing TRIPLEX packaging with DUPLEX flexible packaging, which has led to a related reduction in costs and environmental impact.


Our added value

Added Value summarises the company's ability to produce wealth to then distribute it to the various stakeholders.

Its fundamental components are the Economic Value Generated from ordinary company management and then the distribution in terms of  Economic Value Distributed and Economic Value Retained.

The portion of Economic Value Distributed is divided among the main stakeholders: Suppliers, Employees, Partners - Shareholders, Central Administration, Community and the environment. On the other hand, the Economic Value Retained relates to value adjustments, anticipated and deferred taxes, provisions to reserves and profit for the year.

Revenue
by Geographic Area

REVENUE BY AREA

2018

 Vs 2017

EMEA
48,329
-5%
AMERICAS
22,488
7%
ASIA PACIFIC
17,948
-14%

 Thousands of Euros

Economic value of Valagro SpA in millions €

  2016 2017 2018
Generated
85.898.210
99,179,769

96,703,770

Distributed
74.382.712
93,275,647

84,528,279

Retained
11.515.497
5,904,121

12,175,491

Economic value of Valagro SpA in millions €


Our people

Organisational change 2018

Our Group is constantly focused on keeping the organisation effective and able to get closer to the customer.

With this spirit and based on Corporate goals, in 2018 Valagro decided to divide the Global Research and Development area into Global Research and Global Field Development. In this way our Global Research Department can allow greater focus on specific research matters that strengthen our GeaPower technology. Moreover, the contribution of new technologies and new skills will speed up the offer and the effectiveness of new products.  

Global Development was integrated as Global Field Development in the Global Marketing Department, which changed its name to the Global Marketing and Development Department. This new structure includes managing multiple projects that help the company gain a competitive edge in the marketplace by developing unique solutions, taking us closer to market needs, and by developing new synergies between Field Development, Market Development, Product Management and Sales.

New competency model

In 2018 Valagro defined a new Competency Model, in order to guide the behaviours and actions of every person in the Company, to ultimately reinforce a common organisational DNA that allows people to perform well and achieve the business goals. The new Competency Model has been implemented in processes, procedures, behaviours and approaches and the company has set to work putting the model into practice.

Valagro Corporate University

Learning to learn is the way to excellence. And excellence is one of Valagro's core values in its future path to greater success. Valagro is committed to becoming a 'learning organisation' through constant and pervasive learning. That’s why in 2018 the Company decided to invest in people, providing tools for employees to improve their professional and managerial skills. The Valagro Corporate University was launched to guide and support people's growth by enabling continual, digital tech and multi-modal learning, requiring personal responsibility and engagement to make learning part of the job. The new initiative initially involved the Atessa Headquarters and the Brazilian, US and Indian subsidiaries.     

Graduate Talent Program

Since 2016, Valagro has offered a Graduate Talent Programme to new graduates and PhDs.  In 18-24 months, the students have the opportunity to get to know the company dynamics, work in a team, participate in innovative projects and start their career in an international company.  

Matteo Di Muzio - Microbials laboratory associate

It was India that welcomed Matteo for his brief stay provided by the Short Assignment initiative; among other initiatives, this was in addition to the True day experience, involving 2 days shadowing Andrea Sodi, Area Sales Manager Italy.

Padarthi Eswar Raja Babu - Production & process technology assistant

Eswar is originally from India. Thanks to the Graduate Talent Programme, he was able to make a valuable contribution to the Special company projects initiative by taking part in some of Valagro's strategic projects in Norway, where he went for a short time, and Valagro BioSciences in India, which was the subject of his degree thesis. In addition, Eswar spent a few days in Global Research with the team of Juan Fernando Mejia, Microbial Science Coordinator, as part of the True day experience initiative.

.. and their well-being

Featured projects: the company canteen

In the panorama of initiatives implemented during 2018, the project to create the new company canteen is particularly noteworthy. It aimed to achieve the dual objective of improving employees' well-being – with a greater investment in the quality of food, obtained at zero miles – and at the same time reducing the impact of meals, thanks to the progressive elimination of disposable tableware and plastic water bottles.

Main results:

  • Over 100% increase in employees who get a meal through a company service.
  • Development opportunities with local businesses.
  • Reduction of the cost of the external solution by over 25% thanks to partnerships with EDENRED (one of the largest companies in Italy specialized in corporate welfare).
  • Reduction of the cost of the external solution for the employee by over 60%, thanks also to the company contribution.

Main results:

  • Increase of more than 50% compared to the previous solution and over 400% compared to the initial solution of employees getting a meal through the company service.
  • Development of “Canteen project with zero miles” and controlled supply chain.
  • Reduction in plastic consumption (elimination of disposable tableware and plastic bottles).

Our Research

In 2018, a new organization of the Global Research Department was presented, in order to allow greater focus on specific research areas, speed up the release of new products, and strengthen the GeaPower technology platform. Such organization put in connection 5 main Research Units:

  • Plant Science (including the JointLabs “Valagro @PlantLab” (Sant’Anna School of Advanced Studies, Pisa, Italy) and “Valagro @PHENOLab” (ALSIA-Metapontum Agrobios Research Center, Matera, Italy);
  • Microbial Science (including Valagro Biosciences in India);
  • Formulation Development;
  • Analytical Chemistry;
  • Quality.

 

An additional Unit, named “Computational”, was also conceived with the task to process and analyze the research data released from the 5 main Units, and return outputs capable of supporting strategies, models and actions of Global Research. 


The main scientific-technological innovations

Quality Unit

  1. Implementation of a new “Autosampler” (Agilent 1280 Infinity II HPLC).
    With this new tool it is possible to run analytical (“HPLC”) analysis overnight with increasing of productivity (+100%)
    With this new tool there is no need of operator for sample analysis, therefore less probability of errors
     
  2. New automatized certificate of analysis (generated directly by ERP - Gamma).
    In 2018 we implemented this system that allows to achieve certificate of analysis parameters of the finished product by simply digit the batch number. With this simple implementation it is possible to save up to 200 working hours per year avoiding human error in manual manipulation of data.

5 Patent applications were filed by Global Research Department during 2018.

The G4 GRI guidelines

Starting with the 2016 edition of the Sustainability Report, we have embarked on a journey of progressive compliance with the international standards set out by the Global Reporting Initiative (GRI). This innovation is an integral part of our commitment to sharing and transparency, because it provides us with objective support that helps us better relate to the whole community, which is the purpose of this report the G4 GRI guidelines help us to communicate the impact of our business activities from a social, environmental and economic point of view.

We chose this standard because of our desire to equip ourselves with an internationally recognised tool that had the specific characteristics of comparability, accuracy, clarity, timeliness and reliability.
To highlight this journey, this publication includes indicators provided by our various business departments, expressly specified based on the availability of information required by the standard.

Download the Sustainability Report