As a company, we are committed to ensuring sustainability in the supply chain of our mills. Through the Responsible Supply Chain Program, also known as Support for Sugar Suppliers in Guatemala and Nicaragua, we offer our sugarcane suppliers an accompaniment and advisory program to improve their compliance with labor, occupational health and safety, environmental, and human rights issues. Selected suppliers receive field assessments, tailored action plans, training, and a compliance manual for easy-to-follow improvements. Along with the collaboration of local sustainability experts, they also receive technical support to close identified gaps and enable them to prioritize preventive actions to ensure that good labor practices are followed.
How does it work?
At the start of the program, participating suppliers receive a field assessment of key compliance indicators. Based on this our consultants draw up a short, medium and long-term action plan based on the agreed objectives and their capabilities. To support this implementation, Pantaleon developed a country compliance manual, which includes detailed local legislation and step-by-step instructions for completing the administrative processes, as well as practical formats to facilitate the process. Specialists accompany cane suppliers in implementing improvements in their operations and also support them with training on existing gaps. A subsequent field audit is then carried out to assess the impact and monitor progress.
Since 2014, we have implemented the program in Guatemala, where 92% of the sugarcane received by producers has gone through the program. The current cohort, which started in 2021 and is about to close, represents 69% of third-party cane hectares. This cohort focused on updating legislation and gaps in OHS issues and compliance with COVID protocols specific to the agricultural sector. On average, participants have closed 24% of all their compliance gaps and continue to make progress. In 2020, Pantaleon replicated this project at the Monte Rosa sugar mill in Nicaragua with the collaboration of the Asociación Nacional de Productores de Caña de Occidente – APRICO. Nineteen suppliers participated in the first group, which culminated in 2021. They achieved important advances such as an increase of 15 percentage points in labor compliance, 33 in health and safety, 19 in the environment and 15 in social responsibility. This same year we began a third cohort with 35 suppliers, covering 33% of the cane received from third parties, who are close to closing. With them we have updated the Operating Manual and added a chapter on Hydration, Shade and Rest, in close collaboration with the OHS area of Ingenio Monte Rosa. In addition, technical personnel from the Sugarcane Business and APRICO were trained under the Bonsucro standard and 30 additional suppliers were trained on the Bonsucro Small Producers standard.
In August, we provided training to the Sugarcane Business Technicians of the Monte Rosa sugar mill in Nicaragua. This allowed us to work together on the work plans to be executed by the program’s suppliers and to follow up on the process of strengthening and complying with sustainability standards. Thanks to this knowledge, our technicians will have more tools to support all sugarcane producers to successfully complete the program and even strengthen those who have not yet participated.