inpevthe program today is regarded as a global benchmark, with 421 collection sites in the main...

This report shows the main results, activities and highlights of 2010. The complete version, with photos, detailed descriptions of inpEV’s operation and activities is available in Portuguese at the institute’s website (http://www.inpev.org.br/).

inpEVResponsible for managing the reverse logistics of crop protection empty containers in Brazil, inpEV, Instituto Nacional de Processamento de Embalagens Vazias, was created on December 14th, 2010. The institute is a non-profit organization complying with the national legislation (Law No. 9,974/00), which shares responsibilities among farmers, distributors, industry and the government.

The activities of inpEV, legal representative of the crop protection industry for the reverse logistics, consists of the transport from the collection sites and disposal of empty containers through recycling or incineration, stimulating the creation and management of collection sites and the co-management of these sites with the distribution system, in addition the institute promotes awareness and education initiatives in partnership with other agents part of the container management program. The institute also compiles and releases information about the reverse logistics of crop protection empty containers to the various links in this chain, the press and community as a whole.

InpEV’s members comprise 84 crop protection manufacturers and 7 founding entities representing the industry, distribution channels, cooperatives, agribusiness and the farmers. On an annual basis, the industry invests in the program according to the profile and volume of containers placed in the market, covering the operational costs of the institute. In 2010, the total invested by member companies was R$53.8 million.

The program today is regarded as a global benchmark, with 421 collection sites in the main farming regions, the equivalent of more than 146,000 m² of environmentally-licensed built area. Since 2002, the system has adequately disposed of 168,600 tonnes of empty containers for crop protection products. And each year this figure increases: in 2009 28,800 tonnes were disposed, rising to 31,200 tonnes in 2010.

InpEV’s headquarter is located in São Paulo and the institute operates throughout Brazil through nine regional operational coordinators (CROs), which interact with the responsible local agents for complying with the legislation. In partnership with the distributors and agricultural cooperatives and with the support of the public authorities, the coordinators implement the actions planned by the institute providing guidance for the activities of the collection sites in 25 States and the Federal District. inpEV’s administrative structure consists of 42 employees, 2 student trainees, and 5 outsourced professionals.

42010 Sustainability Report 52010 Sustainability Report

Economic-financial (inpEV)

Container management program

Work force (inpEV)

Total resources to finance the program (inpEV + outside sources)(R$ thousand – accumulated since 2002)

Operating revenue (R$ thousand) (*)

Number of employees (*****)

Number of women working at inpEV

Numbers of employees with any kind of impairment or special needs

Number of members (companies and entities)

Containers disposed of (thousand tonnes)

Collection sites

States with collection sites

Number of transported trucks

% of primary containers disposed of (******)

2010 2009 2008 2007 2006

(*) 85% corresponds to the capital contributions made by member companies.(**) Funds paid by recyclers for the remittance of packaging and technical cooperation with inpEV.(***) Funds paid by recyclers for the remittance of packaging from the Rondonópolis unit.(****) Rent that Campo Limpo Reciclagem e Transformação S.A. pays to inpEV.(*****) In 2007 employees joined the institute to be allocated to the strategic and management planning work of Campo Limpo Reciclagem e Transformação S.A.(******) �ese are the main containers items, in other words those which have been in direct contact with the product.

440,00 380,0 325,0 270,0 215,0

67,1 54,3 43,3 42,9 49,2

53,8 45,9 34,5 35,7 36,2

6,7 6,4 7,2 7,2 3,9

N.A 122 75 N.A N.A

2,7 1,8 1,0 N.A N.A

53,7 36,6 29,4 25,2 18,1

42 39 32 40 26

17 17 13 14 11

0 0 0 1 1

84 80 76 67 66

31,2 28,8 24,4 21,1 19,6

421 412 399 375 365

25 25 25 25 23

8.281 8.071 6.962 6.807 6.162

94 94 94 89 88

Member companies contribution

Revenue from technical cooperation (**)

Rondonópolis collection center (***)

Campo Limpo Reciclagem e Transformação de Plásticos Leasing (****)

Net worth (R$ thousand)

Main indicators - inpEV

63

7780 80 80

2006 2007 2008 2009 2010

Collected containers (%)

0,4 0,40,3

0,5

2006 2007 2008 2009 2010

0,6

Investment in researchand development (R$ thousand)

2006 2007 2008 2009 2010

Investment in environmentaleducation (R$ thousand)

1,7 2,31,83,02,6


08

Table of contents

Chairman message

05About inpEV

06Main indicators

18Operating performance

20Infrastructure

09Reverse logistics of crop protection empty containersSystem flow

Member companies and entitiesShared management

Updating of the corporate bylaws Code of conduct

General AssemblyBoard of Directors

Fiscal CouncilManagement

Collection sites inaugurated in 2010Associations

Investments and process improvementsProjects

RelationshipAwards and recognitions

13Corporate governance

Mensagem do presidente

2010 was an excellent year from operational standpoint, with an increase of 9% in the volume of collected empty containers, reaching 31,200 tonnes. There were gains in productivity resulting in a 4% increase in the volume of containers loaded on trucks (truck equivalent) and a 6% reduction per kilogram of shipped empty containers. Based on these figures, 2010 was effectively a year we managed to achieve more with fewer resources.

In Education and Communication areas, in addition to the traditional campaigns and publications, we introduced a major innovation, the educational program Ciclo de Vida das Embalagens (The containers life cycle) in alignment with Brazil’s national educational curriculum parameters established by the ministry of education, which has reached more than 70,000 children at elementary education levels from 1,022 schools.

The objective of contributing to the program’s economical self-sustainability is now closer. The closing of the containers entire life cycle within the industry itself, is a reality. Ecoplástica Triex®, the only recycled container produced of the crop protection packages post consumption resign with a developed technology to meet quality requirements and to bring measurable environmental benefits. Today, Ecoplástica is gaining a firm foothold in the packaging

Chairman message

João Cesar M. RandoChief Executive Officer

market in recognition of its attributes. Campo Limpo Reciclagem e Transformação de Plásticos (the company established to contribute to the program’s economical self-sustainability achievement) is largely responsible for this degree of excellence achieved.

Campo Limpo Reciclagem e Transformação de Plásticos had its ISO 9001 certification extended to projects with the development and manufacture of plastic containers. InpEV is also encouraging the implementation of a quality policy among all the recycling partners. Dinoplast, the first recycling company to be part of the container management program, obtained ISO 9001 certification in 2010.

An event of extreme relevance for Brazil and the environment, was the establishment of a National Policy for Solid Residues (PNRS - Política Nacional de Resíduos Sólidos). InpEV contributed in the discussions and drawing up of this law, and in it are clearly reflected the principles and concepts that we have been practising over the last 10 years – such as shared responsibilities, reverse logistics, integrated solid residue management and eco-efficiency.

With the advent of PNRS, inpEV was invited to provide support for other sectors linked to the crop protection industry, focused on the agricultural sector. We believe the initiative of

sharing our experiences with the players already part of the current system (sales agents and co-operatives) is a duty. For 2011, there are two pilot projects directed at the professional pest management and bags of treated seeds.

The creation and implementation of the Code of Conduct summarizes the institute’s principles of operation, while strengthening aspects of Corporate Governance. The Human Capital Management program seeks to ensure the professional development of employees, providing them with the necessary skills to take on future challenges. The same can be said for the program for Innovation and Creativity, which has the objective of consolidating the knowledge acquired, while also creating a stock of new knowledge and ideas which will form the basis of our future.

I could not end without emphasising the fact that the participation of the sales agents, cooperatives and farmers was a key factor in enabling the container management program to reach its current stage of development, bringing pride for all the links in the chain and putting Brazil at the forefront in global terms among other countries promoting the correct disposal of crop protection empty containers

82010 Sustainability Report

1 Reverse logistics for empty agrochemical containers

he correct disposal of crop protection empty containers has been obligatory since 2002, when Federal Law No. 9,974/00 was constituted, regulated by Decree No. 4,074/02, which determined the shared responsibilities among

farmers, distributors/co-operatives, manufacturers and the government regarding the post-consumption disposal of this containers.

In 2010 was published the National Policy for Solid Residues – PNRS (Law No. 12,305/10 and Decree No. 7,404/10), determining that the crop protection empty containers reverse logistics must continue to follow the terms of Law No. 7,802 of 1989 and Decree No. 4,074 of 2002, while increasing the responsibility of the residues disposal to other sectors.

T

84 crop protection products manufacturers participate in this program, selling their products to more than 3,500 companies (distributors and co-operatives) as well as to farmers throughout the country. These, use the crop protection products, rinse and return the empty containers to the 421 collection sites that are indicated on the original sales invoices. These collection sites are managed by 267 associations of distributors and cooperatives – in many locations also involving the co-management of inpEV. The disposal of containers received from the collection sites is performed by inpEV, who directs the containers to a network of 14 partners, among them being recycling and incineration companies, located in 6 States: Bahia, Mato Grosso, Minas Gerais, Paraná, Rio de Janeiro and São Paulo. This program generates more than 1,500 direct jobs.

Container management flow

84 membercompanies

More than 3,500companies

5 million agriculturalproperties (IBGE)

14 partners (recyclingand incineration

companies)

421 collectionsites

Farm

ersDistributors

Re-sales agents

Cooperatives

Collection sites: co-management between inpEV and267 distribution and co-operative associations

Manufacturingindustry

Collecti

on sites

Collecti

on for

disposal

Flow of empty containers

LEGENDA

Sales flow

Member companies and entitiesIn 2009, the membership was composed of 80 crop protection manufacturing and registering companies; in 2010, four more companies joined this network: Action, Chemtra, Matsuda and Ouro Fino. The number of member entities remained the same.

Action

ADM do Brasil

Agecom Produtos de Petróleo

Agrialliance

Agrocete

Agrovant

Allier Brasil Agro

AMVAC do Brasil

Allvet Química Industrial

Arysta

Atta-kill

Atanor

Atar do Brasil

Basf

Bayer Cropscience

Bequisa

Bio Controle

Bio Soja

BRA

Buckman

CCAB Agro

Cheminova

Chemotécnica

Chemtra Comercial

Chemtura

Consagro

Coodetec

Cropchem

Cross Link

De Sangosse Agroquímica

Degesch do Brasil

Dinagro

Dow Agrosciences

DuPont do Brasil

DVA Brasil

DVA Especialidades

Ecco Conttrol

Enro Industrial

Fênix Industrial

FMC

Fersol

Forquímica

Helm do Brasil

Iharabrás

Inquima Ltda

Irrigações Dias Cruz

Isagro Brasil

Isca Tecnologias

Laboratórios Pfizer

Lanxess

Luxembourg

Matsuda

Merck

Microquímica

Microsal

Milenia

Momentive Performance Materials

Monsanto

Nitral Urbana

Nufarm

Nortox

Ouro Fino

Oxiquímica

Petrobrás

Pilarquim

Poland Química

Prentiss

Produtos Químicos São Vicente

PR Trade

Rotam do Brasil

Sabero Organics América

Samaritá

Sinon do Brasil

Sipcam Isagro

Stoller do Brasil

Sumitomo

Syngenta

Taminco do Brasil

Total Lubrificantes do Brasil Ltda.

Turfal

Unibrás Agroquímica

Union Agro

United Phosphorus do Brasil

W. Neudor�

Action

ADM do Brasil


Agrialliance

Agrocete

Agrovant

Allier Brasil Agro

AMVAC do Brasil


Arysta

Atta-kill

Atanor

Atar do Brasil

Basf

Bayer Cropscience

Bequisa

Bio Controle

Bio Soja

BRA

Buckman

CCAB Agro

Cheminova

Chemotécnica

Chemtra Comercial

Chemtura

Consagro

Coodetec

Cropchem

Cross Link


Degesch do Brasil

Dinagro

Dow Agrosciences

DuPont do Brasil

DVA Brasil

DVA Especialidades

Ecco Conttrol

Enro Industrial

Fênix Industrial

FMC

Fersol

Forquímica

Helm do Brasil

Iharabrás

Inquima Ltda


Isagro Brasil

Isca Tecnologias


Lanxess

Luxembourg

Matsuda

Merck

Microquímica

Microsal

Milenia


Monsanto

Nitral Urbana

Nufarm

Nortox

Ouro Fino

Oxiquímica

Petrobrás

Pilarquim

Poland Química

Prentiss


PR Trade

Rotam do Brasil


Samaritá

Sinon do Brasil

Sipcam Isagro

Stoller do Brasil

Sumitomo

Syngenta

Taminco do Brasil


Turfal


Union Agro


W. Neudor�

Member companies

Action

ADM do Brasil


Agrialliance

Agrocete

Agrovant

Allier Brasil Agro

AMVAC do Brasil


Arysta

Atta-kill

Atanor

Atar do Brasil

Basf

Bayer Cropscience

Bequisa

Bio Controle

Bio Soja

BRA

Buckman

CCAB Agro

Cheminova

Chemotécnica

Chemtra Comercial

Chemtura

Consagro

Coodetec

Cropchem

Cross Link


Degesch do Brasil

Dinagro

Dow Agrosciences

DuPont do Brasil

DVA Brasil

DVA Especialidades

Ecco Conttrol

Enro Industrial

Fênix Industrial

FMC

Fersol

Forquímica

Helm do Brasil

Iharabrás

Inquima Ltda


Isagro Brasil

Isca Tecnologias


Lanxess

Luxembourg

Matsuda

Merck

Microquímica

Microsal

Milenia


Monsanto

Nitral Urbana

Nufarm

Nortox

Ouro Fino

Oxiquímica

Petrobrás

Pilarquim

Poland Química

Prentiss


PR Trade

Rotam do Brasil


Samaritá

Sinon do Brasil

Sipcam Isagro

Stoller do Brasil

Sumitomo

Syngenta

Taminco do Brasil


Turfal


Union Agro


W. Neudor�

Action

ADM do Brasil


Agrialliance

Agrocete

Agrovant

Allier Brasil Agro

AMVAC do Brasil


Arysta

Atta-kill

Atanor

Atar do Brasil

Basf

Bayer Cropscience

Bequisa

Bio Controle

Bio Soja

BRA

Buckman

CCAB Agro

Cheminova

Chemotécnica

Chemtra Comercial

Chemtura

Consagro

Coodetec

Cropchem

Cross Link


Degesch do Brasil

Dinagro

Dow Agrosciences

DuPont do Brasil

DVA Brasil

DVA Especialidades

Ecco Conttrol

Enro Industrial

Fênix Industrial

FMC

Fersol

Forquímica

Helm do Brasil

Iharabrás

Inquima Ltda


Isagro Brasil

Isca Tecnologias


Lanxess

Luxembourg

Matsuda

Merck

Microquímica

Microsal

Milenia


Monsanto

Nitral Urbana

Nufarm

Nortox

Ouro Fino

Oxiquímica

Petrobrás

Pilarquim

Poland Química

Prentiss


PR Trade

Rotam do Brasil


Samaritá

Sinon do Brasil

Sipcam Isagro

Stoller do Brasil

Sumitomo

Syngenta

Taminco do Brasil


Turfal


Union Agro


W. Neudor�


The container management program operates in accordance to the concepts of shared responsibility (Federal Law No. 9,974/00), its main working concept being the commitment and engagement of all the various links of the chain – farmers, distributors/cooperatives, manufacturing industry and the government, with complimentary responsibilities aiming the environment preservation and complying with the legislation.

Shared responsibilities

The following founding entities complete the list of inpEV’s members, respectively representing:

Industry: ANDEF (andef.com.br), AENDA (aenda.org.br) & SINDAG (sindag.com.br)

Distributors: ANDAV (andav.com.br)

Cooperatives: OCB (ocb.org.br)

Farmers: CNA (cna.org.br)

Agribusiness sectors: ABAG (abag.com.br)

Member entities


2 Corporate governance

he corporate governance model adopted by the institute is aligned with the best practices in the market and registers excellence under categories like cohesion of its share capital and business structures, compliance with the law, responsibility

to stakeholders, functioning and procedures, performance of the General Members Assembly, the Board of Directors and the Executive Board, as well as values and beliefs, mission and vision, strategic management, directives and objectives, and respecting the environment.

In 2010, a model was introduced for the evaluation of the Board of Directors, which uses a diagram showing indicators of participation and performance.

T

Confidence, equal treatment of members and protection of stakeholders concerns, are all clear characteristics in inpEV’s corporate bylaws, which provide guidelines for decisions based on its actions sustainability.

In 2010, some updating was carried out of these bylaws for the creation of a new class of association. The category of “Company and Entity of Authorised Class”, approved at the General Assembly, has made it possible for inpEV to carry out the management of residues from other sectors, as a way of achieving the economic self-sustainability of the program, preserving the investments of the manufacturers of crop protection products.

inpEV published its code of conduct in 2010. This document plays a fundamental role in the process of strengthening the institute’s culture for being an instrument to support the dissemination of its principles, values and mission, providing guidelines for its employees’ actions and the social attitude to the different stakeholders.

In order to draw up this code, the best market practices were evaluated like working environment, holding a position or function, relationships, conflicts of concerns, responsibility of staff managers, security of information, accuracy of information, and the institute’s reports.

Updating of corporate bylaws

Code of conduct

The General Members Assembly, inpEV’s main governing body, consists of member companies and the Chairman of the Board of Directors or a person designated by him. There are two meetings held a year, convened by the Board of Directors. The first is held in the first semester to approve the annual report of previous year’s activities, as well as the accounts and balance sheets of the year just ended, while the second is held in the second semester, to deal with subjects such as the election of members of the Board of Directors, and the election of members of the Audit Comittee Extraordinary General Meetings are held whenever required by member companies to make decisions on subjects such as the dismissal of elected members, reforms to the corporate bylaws or changes at inpEV, among other subjects for which it is called.

2010’s Assemblies were held in April and December 2010.

General Members Assembly

The Board of Directors consists of five members elected from member companies, the Chief Executive Officer of inpEV and representatives of the member entities; these representatives have a mandate of two years. In the event of the Chairman or Vice-President leaving the Board of Directors, a new election is held by the other members of the board. The Chairman of the Board is not permitted to double up as the Chief Executive Officer of the institute. This Board defines the directives of inpEV’s operations, ensures the correct application of its funds, approves expenses and guarantees the ethical and legal conduct of the institute and its employees; furthermore, it monitors results, encouraging synergy between the main links of the agricultural chain involved in the container management program, setting the rules for the election process for the choosing of its members, among these being the election of the Chairman and Vice-President, as well as defining its internal regulations and inpEV’s executive strategy.

Board of Directors


Manufacturers Sales sector Government:

Municipal, State and Federal

Farmers

Management of the collection sitesIssue of receipt ensuring the container has been returned

Indication on the sales invoice of the collection site for the return of empty containers

Awareness and education

InspectionLicensing

Rinse and return to the indicate collection site

Final disposal

BayerFull-time member: Peter AhlgrimmSubstitute member: Gottfried Stützer

DowFull-time member: Welles C. Pascoal Substitute member: Celso Fragoso

DuPont Full-time member: José Donizete VilhenaSubstitute member: Juan Carlos Bueno

ABAG - Associação Brasileira de AgrobusinessFull-time member: Cristiano Walter SimonSubstitute member: Luis Antonio Pinazza

ANDAV - Associação Nacional dos Distribuidores de Insumos Agrícolas e Veterinários Full-time member: Luis Antônio MoreiraSubstitute member: Henrique Mazotini

ANDEF - Associação Nacional de Defesa Vegetal Full-time member: Eduardo DaherSubstitute member: Peter Ahlgrimm

CNA - Confederação Nacional da Agricultura Full-time member: Alexandre KriechlerSubstitute member: Daniel Kluppel Carrara

OCB - Organização das Cooperativas BrasileirasFull-time member: Evaristo Câmara Machado NettoSubstitute member: Renato Nobile

SINDAG - Sindicato Nacional da Indústria de Produtos para Defesa Agrícola Full-time member: Amaury Paschoal SartoriSubstitute member: José Roberto da Ros

Member Companies

Member Entities

Members of the Board of Directors in 2010

MonsantoFull-time member: Luciano FonsecaSubstitute member: Anderson Fabrício dos SantosMilenia

Full-time member: Tarciso Mauro BonachelaSubstitute member: Adriano Carneiro Roland

AENDA - Associação das Empresas Nacionais deDefensivos AgrícolasFull-time member and Substitute member: Túlio Teixeira de Oliveira

Audit Comittee

The Board of Auditors consists of three members from member companies who are elected at the General Assembly, with a mandate of two years and re-election allowed once; it is not permitted for elected companies to participate on the Board of Directors and the Board of Auditors at the same time. The Board of Auditors meets each semester and on an extraordinary basis, whenever convened.

It has the purpose of assisting and inspecting the governing bodies of the management of inpEV and proposing measures that contribute to the financial equilibrium of the institute. It is also its task to express its opinion on the accounts, balance sheets, financial and accounting performance, and asset transactions, as well as issuing reports on subjects of financial matters to the institute. In 2010, the Board of Auditors was composed of the companies Arysta, Iharabrás and FMC.

Corporate governance

ManagementPainel de Bordo (Balanced Scorecard)

Containers

Indicator Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Accumulated Indicator’s description

Recycled containers

HDPE MONO

Coex

Budget

Incineration cost

Weight per truck

Spontaneous media

Cost of containermanagement (Total)

Costs of containermanagement (withoutProjects area)

Goal surpassed Goal achieved Goal not achieved Goal achieved but close to lower limit

Tonnes of containers disposed of

Tonnes of recycled containers

Kilos of mono-layered material disposed of

Kilos of Coex material disposed of

R$

Cost R$/kg

Cost R$/kg

R$/kg

kilos/equivalent

Exposure in centimetres

Painel de Bordo is an integrated management tool developed by the Fundação Dom Cabral and has been used since 2006 by inpEV to evaluate achieved results and provide guidelines for any changes in strategy, and the planning of initiatives. It consists of a master control panel, with the main indicators for all inpEV’s areas, showing the results of all them. The indicator’s results are monitored on a monthly basis at AGM meetings (monthly management meetings) and at the Board of Directors meetings.

The tool also brings, for each item of control, the “fact”, “cause”, “action”, “responsible” and “date of conclusion” fields, filled in monthly for those indicators which do not bring the expected results.


The amount of disposed empty containers increases every year in Brazil. In 2010, 31,200 tonnes were disposed of representing an increase of 8.7% compared to 2009. 92% out of this total have been recycled and the remained have been incinerated.

Increase in the volume of containers disposed of (tonnes)

Disposal evolution by State (tonnes)


3 Operational performance

State

Mato Grosso

Paraná

São Paulo

Goiás

Rio Grande do Sul

Minas Gerais

Bahia

Mato Grosso do Sul

Maranhão

Santa Catarina

Piauí

Rondônia

Pernambuco

Espírito Santo

Tocantins

Alagoas

Rio Grande do Norte

Pará

Rio de Janeiro

Sergipe

Roraima

Ceará

Paraíba

Total

20072009

4.734

3.647

3.064

1.407

1.840

2.022

1.373

1.438

377

490

120

59

144

141

81

61

40

-

-

17

8

5

10

21.078

-

6.777

4.563

3.598

3.110

2.511

2.279

1.883

1.977

603

545

148

92

206

127

118

88

56

38

22

24

5

-

28.771

2010

4

-

-

7.103

4.716

3.613

3.314

2.839

2.605

2.469

2.176

581

529

247

234

213

194

176

100

62

57

11

22

31.266

2008

5.794

4.194

3.036

2.439

2.016

2.113

1.450

1.666

396

480

104

56

180

147

79

98

38

34

-

36

38

21

-

24.415

The container management program continues to expand its network, with 421 collection sites by the end of 2010. 113 collection centres and 308 collection posts corresponding to a total environmentally-licensed covered area of 146,000 m², involving more than 3,500 distributors and co-operatives in 25 States in Brazil, as well as the Federal District.

Collection sites inaugurated in 2010In 2010, 8 new collection sites have been inaugurated. Two collection centres were transformed into collection posts and one collection post became a collection centre in a total of 421 collection sites located in 25 States, as well as the Federal District.

Transformed from collection centre to collection post: Ilhéus – BA and Paty do Alferes – RJTransformed from collection post to collection centre: Sinop – MT

1. Anapurus (MA);2. Cachoeira do Itapemirim (ES);3. Nepomuceno (MG);4. Oliveira (MG);5. PAD (DF);6. Piracanjuba (GO);7. São Miguel do Guaporé (RO);8. Taiobeiras (MG).

Collection posts inaugurated:


4 Infrastructure

Logistics planning

Transport

ISO 9001:2008 certification for Dinoplast and Campo Limpo

Two key tools contribute to the continuous improvement of the reverse logistics management performed by inpEV. Monthly meetings for the operation integrated planning involving collection, transport (with the logistics operator hired by the institute) and disposal of the empty containers are held at the institute. The second tool is the Sistema de Informação de Centrais – SIC (Collection centres Information System), software developed by inpEV to manage the information involved in the process of collecting and disposal of the containers; this system is used by all collection centres and allows the control of materials handling (stocks, collection orders, expenses, etc.) and the tracking of containers. Currently, 100% of the collection orders (issued by collection centres requiring removal to its disposal) are issued via SIC.

InpEV adopts the use of return shipping optimization to transport empty containers to their disposal. The same truck that delivers the crop protection products to the distributors, cooperatives and end-users, is used to bring back the empty containers (either in bulk form or compacted) stored at the collection sites. The optimization of return shipping ensures efficiency, safety and cost reduction and has been applied in more than 98% of the loads of collection centres to the final destination.

The volume of empty containers transported in 2010 was 8.7% higher than in 2009 (increasing from 28,700 tonnes to 31,200 tonnes) while the quantity of trucks used for its transport increased by 3% (from 8071 trucks in 2009 to 8281 trucks in 2010) as a result of the productivity gains obtained by the program. The transport capacity for plastic containers (PEAD and COEX) in “equivalent truck” units, amounted to 12,007 kg.

The first recycling partner company in the container management program, Dinoplast, achieved ISO 9001 certification as result of efforts to suit the requirements of certification focused especially in the quality management.

Campo Limpo Reciclagem e Transformação de Plásticos S.A. the company formed to contribute to the economic self-sustainability of the container management program, managed to extend the scope of its ISO 9001:2008 certification. This new certification covers the recycling and transformation of plastics into post-consume resins: design, development and manufacturing of plastic containers. The initial certification, obtained in 2009, only covered the recycling and transformation process for the production of post-consume resins.

Associations

Investments and process improvementsManual for Quality Management

Safety system for normal and rapid presses

Compacting of nonrinsed containers

There are 267 associations of crop protection product traders, bringing together approximately 3,500 distributors and cooperatives across Brazil operating within the containers management program, and performing the co-management of the collection sites with inpEV. A number of these sites are managed only by the distributors or cooperatives.

In 2010, among the various achievements, a book was launched summarizing the institute’s internal and external processes and procedures, known as the Manual for Quality Management, which covers all inpEV’s policies. This book is used for consultation purposes by employees of the institute, and, depending on the procedure, also by associates, suppliers, and collection sites.

InpEV has increasingly invested in the area of safety. As an example, it has started to purchase presses with sensors, while also fitting sensors to existing presses. This mechanism interrupts the functioning of the press if it is being handled incorrectly, improving safety levels for employees at the collection centres. In 2010, the institute purchased 31 presses that have with a higher rate of productivity.

Weight, height and width are measured when the bales are formed; the weight of a given bale must be between 40% of a man’s weight and no more than 70 kg, so that workers’ health is not jeopardised.

The correct handling of the presses used at the centres and their compacting capacity are both important aspects, as they ensure that the bales are of a size appropriate to the carrying capacity of the trucks.

Since 2004 several improvements have been introduced to the container management program aiming the upgrade of the final stage of the reverse logistics system, with the adoption of plastic tape to bind the bales, the gradual replacement of existing presses as well as the providing of guidance and orientation at the collection posts.

In the second half of 2010, inpEV successfully began a new process for the compacting of nonrinsed containers – making transport easier and reducing freight charges (the transport capacity increased from 1,500 kg of empty containers per truck, to 10,000 kg per truck) and improving storage capacity at the centres by reducing the space occupied by the bales. In 2011, all the loads of nonrinsed and nonrinseble packaging will be compacted for disposal.


Professional pest management and seed bags

Obsolete stocks

In 2010, the proposal for providing services to other sectors significantly progressed; the focus is mainly on the disposal of seed bags and the empty

Ordinance No. 329, issued by the Ministry of Agriculture on September 2, 1985, prohibits the manufacture, sale, distribution and use of organochloride-based agrochemicals, used in agriculture ou cattle rising. In several States inpEV participates in programs for the management of obsolete or unsuitable products aiming to find combined solutions for the elimination of banned agrochemical products, still present in the countryside, in order to ensure that they are correctly disposed of. On May 28th, 2009, as a result of Combined Resolution SMA/SAA No. 002, the “Interdisciplinary Work Group for the Final Disposal of Agrochemical

Projects

Obsolete stocks disposal evolutionCampo Limpo Reciclagem e Transformação de Plásticos S.A.

Conceived by inpEV and inaugurated in May 2008, in Taubaté, São Paulo, Campo Limpo Reciclagem e Transformação de Plásticos S.A. is a pioneering initiative in the sector. Its goal is to close the cycle of post-consumer agrochemical containers in the sector itself, aimed at economic self-sustainability of the reverse logistics program.

The enterprise aims to be a benchmark in recycling and transformation of plastics and has 140 employees. In 2010, the Company

containers of products used professionally for the control of urban pests and infestations. The majority of this product’s manufacturers are already inpEV’s

members for the disposal of the empty agrochemical products containers, and are discussing ways of starting pilot projects in 2011 supported by inpEV.

Products” was created to eliminate obsolete agrochemical products, particularly POPs (persistent organic pollutants) in the State of São Paulo. The work group consists of representatives from representative bodies and institutions from the production chain and the government, having met seven times in 2010. As a result, Cetesb’s Directive Decision No. 365 of November 29th, 2010 was issued, which will compel producers to declare the products stored on properties belonging to the State, this information forming the basis of the mapping and inventory of these products. Farmers are expected to make their declarations in 2011.

In the State of Paraná, in an assessment carried out in 2009 in accordance with State Law

No. 16,082/09, some 630 tonnes of obsolete agrochemical products were identified, in over 1,900 rural properties. In December 2010, a term of technical co-operation was signed between the partners involved (government, the Faep System, the Ocepar System and inpEV), sharing responsibilities for the collection and disposal of residues, among farmers, traders, manufactures and the government. Also in 2010, the State government held a public tender for the hiring of a company that will be responsible for preparing and transporting the residues destined for incineration. In addition to this, 21 places were identified in the State for the temporary storage of these residues. The operational start-up date for this operation has still yet to be defined.

invested R$30 million in projects and process improvements, while for 2011 further investment of R$10 million is planned.

Post-Consumption Resin and the 20 litres Ecoplástica Triex (initially used for bottling agrochemicals), are the main commercialized products. Shortly, Campo Limpo intends to trade the 5 litres Ecoplástica Triex, which is still in the testing phase.

In February 2009, eight months after its

inauguration, the Company obtained ISO 9001:2000 certification for the recycling and transformation of plastics into post-consumption resins, while in January 2011, the Company obtained an extension to the scope of its ISO 9001:2008 certification. The new certification is for: “Recycling and transformation of plastics into post-consumption resins – project concept, development and manufacture of plastic containers”.

Education and awareness initiativesOs Dois Lados da Consciência Campaign (“Both sides of the conscience)

Os Dois Lados da Consciência (Both sides of the conscience) is an educational campaign launched in 2009, whose lead character is the cheerful and humorous scarecrow Olimpio, representing the bright and positive side of the conscience influencing to do the right thing: rinse and return the agrochemicals empty containers, while on the other hand there is a crow symbolizing the wrong side.

The purpose of the campaign is to raise the awareness and sensitivity of farmers, and other links in the agrochemical chain, that still do not perform the correct procedures for the empty containers disposal. In 2010, campaign pamphlets were circulated, and publicity material was distributed at retail, while the road panels installed in the first phase of the campaign were maintained.

The information exchanged between institute and its stakeholders has resulted in the creation of a permanent communication channel. This channel facilitates the dissemination of inpEV and its partners actions through educational campaigns, training sessions, courses, seminars and workshops, including Dia Nacional do Campo Limpo (National Clean Field Day) among other initiatives that unite efforts of the re-sale associations and co-operatives, member companies and entities, partners and government bodies.

Engagement


Dia Nacional do Campo Limpo (National Clean Field Day)Every August 18th, Dia Nacional do Campo Limpo is celebrated. Conceived by inpEV in 2005 as a way of mobilising all those involved in the container management program, the initiative expands its reach every time it is celebrated, and in 2010 it marked the start of the educational project Ciclo de Vida das Embalagens (The container’s life cycle), aligned with the national curriculum parameters, defined by the ministry of education, introducing in the 1,022 participating schools the content regarding the disposal of all types of post-consumption containers, highlighting the example coming from the countryside (the reverse logistics of empty agrochemical containers).

Drawing and writing competitions, guided visits to the collection centres, interviews with the collection centres managers, activities involving a CD of children’s music about the environment and domestic waste, and the consumption of containers, were all part of the project.

The activities in commemoration of Dia Nacional do Campo Limpo mobilised 139,616 people in 23 States.

In 2010, inpEV developed an adaptable campaign for mobile reception initiatives. The theme of the campaign is “It’s time to return your empty containers”, deployed on posters, adhesive displays, pamphlets and T-shirts, being used for the first time in 2010 in Poconé, in the State of Mato Grosso.

Mobile reception campaigns

Number of people involved

Number of States

Number of collection centres

Participants in drawing competition

Participants in writing competition

117.449

23

99

41.524

18.094

112.638

23

99

41.871

17.349

139.616

23

98

42.056

25.921

200820092010

Dia Nacionaldo Campo Limpo

*For the first time in 2010 the “The container’s life cycle” project was implemented, mobilizing 70,916 students from elementary educational levels and 1,022 schools from 160 Municipalities and 20 States.

The Mérito Fitossanitário Award was hosted by Andef (industry representative) and supported by Andav, inpEV and OCB, as an incentive initiative designed to recognize professionals, industries, distributors, cooperatives and collection centres that have shown an outstanding performance in educational initiatives and the training of farmers. At the 13th edition of the Award Ceremony, tribute was paid to the work developed by 9 crop protection manufacturing companies, 4 container collection centres, 6 distributors and 6 cooperatives, divided into the categories: Industry, Campo Limpo, Distribution Channel and Cooperatives, under the Headings Company, Professional and Project categories.

In 2011, the award is to be renamed to Andef Award.

XIII Mérito Fitossanitário Award (Phitosanitary Merit Award)

1st Ituverava – SP (ranked 1st in the category medium-size centres)

2nd Primavera do Leste – MT (ranked 1st in the category large centres)

3rd Piracicaba – SP (ranked 2nd in the category medium-size centres)

The Araranguá Centre – SC was ranked 1st in the category small centres.

The Implantar program was created by inpEV to encourage the collection sites to improve their performance. The program attributes value to good practices adopted, such as mobilisation for Dia Nacional do Campo Limpo, participation at events and seminars, use of SIC, annual average cost per tonne processed, average weight per truck, general organization, among others. The collection centers are divided into large centres (that collect more than 300 tonnes of empty containers), medium-size centres (from 120 tonnes to 300 tonnes) and small centres (up to 120 tonnes). In 2010, 109 collection centres joined the program, the winning centres being:

ImplantarBrazil ranking:


The management of the empty containers reverse logistics and the results of the program, are recognised for excellence every year, at important awards ceremonies. In 2010, new achievements represented that intense work and concern for the environment can and does make a difference.

Awards and Recognitions

ABMR&A Award for Communication in Rural Marketing and Agribusiness: The campaign Os Dois Lados da Consciência (Both sides of conscience) was Gold awarded in Service Campaign category at the XVI ABMR&A Award for Communication in Rural Marketing and Agribusiness.

Agrow Awards: Campo Limpo Reciclagem e Transformação de Plásticos and Ecoplástica Triex cases regarding the closure of the container life-cycle within the agrochemical sector were recognised by a mention at the Agrow Awards.

Abrasca Award: inpEV once again featured among the top finishers Abrasca Award, an annual prize held by the Associação Brasileira das Companhias Abertas (Brazilian Association of Listed Companies); the Institute’s 2009 Sustainability Report was ranked in 3rd place in the category “Non-Corporate Organizations”.

Crop Life Latin America: Also in 2010, inpEV was made an honorary member of Crop Life Latin America, an organization which represents the main industries and associations in the agricultural sector in 18 countries.


Communication and Education inpEV

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Créditos302010 Sustainability Report

inpevthe program today is regarded as a global benchmark, with 421 collection sites in the main...

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