inpEV - The National Institute for Processing Empty Packages was founded 15 years ago in order to represent the sector manufacturing crop protection products to promote the proper disposal of empty post-consumption packages across the national territory. GRI G4-3

The organization acts as the intelligence center of the Campo Limpo System (SCL) by mobilizing and articulating a network that includes all links in the chain of manufacturing, distribution and use of crop protection products, including industry, distributors, government agencies and farmers.

During this 15-year trajectory, inpEV has become a reference in reverse logistics of empty packaging in Brazil and in the world, reaching the environmentally correct disposal rate of 94% of the primary packages marketed each year. Approximately 90% of them are recycled and transformed again into raw material for the production of primary packaging and other artifacts. That which cannot be reinserted into the process, which represents about 10% of the total, is sent to incineration and prevents out of date products disposal from causing damage to the environment.

When generating safety and efficiency in the processing of empty packaging, inpEV contributes to reducing impacts and preserving the environment

Commitment towards sustainability is at the heart of inpEV. Guaranteeing safety and efficiency when processing empty crop protection packaging directly influences the reduction of potential risks and actual impacts related to the inadequate disposal of such material, besides contributing towards environmental conservation. Recycling the packaging yields direct benefits such as reduction of solid waste generation and the resulting emission of greenhouse gases, besides the avoided energy to manufacture new products, which reduces consumption of natural resources and generates jobs. GRI G4-2, G4-EC8

To accomplish this work, inpEV relies on 73 employees, distributed between its headquarters in São Paulo, its ten regional offices throughout the country and five receiving units directly managed by the institute – the Campo Limpo System has over 406 central stations and receiving outposts managed by the associations of distributors and traders of plant protection products. GRI G4-4, G4-5, G4-6, G4-8, G4-9

inpEV is a member of CropLife Latin America, an organization that defends the agricultural productivity and sustainability, and is a member of the board of two member entities: the National Union of the Plant Health Products Industry (Sindiveg - Sindicato Nacional da Indústria de Produtos para Defesa Vegetal) and the National Plant Health Association (Andef - Associação Nacional de Defesa Vegetal). GRI G4-16

No one disputes anymore the beauty of this System and its legacy. Recycling empty crop protection packaging means reusing these available resources today so that future generations may not go without them. For me, a great motivation for working at inpEV is to show that human beings are not only those who destroy. They build and rebuild too.

Mário Fujji, inpEV logistics manager since 2002

A reference to other countries

The disposal of empty crop protection packaging in Brazil was cited by the Minister of Agriculture, Livestock and Supply (Mapa), Blairo Maggi, as an example of sustainable practices to be followed by other countries during the UN climate conference (COP 22), held in Morocco in November. This recognition is further proof of the relevance of inpEV's work and the contribution of the Campo Limpo System regarding environmental conservation.

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Non-profit organization GRI G4-7

Constituted as a private
non-profit organization, inpEV was started in 2001 to comply with Federal Law nr. 9.974/2000 and Decree 4.074/2002.

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A model for other segments

At the end of 2016, inpEV and Abisolo (Brazilian Association of the Technology Industries in Plant Nutrition) signed a contract to carry out a pilot project in receiving packages of foliar, organo-mineral and organic fertilizers, besides plant substrates and soil conditioners. The rural producers from the regions of Ponta Grossa (PR), Rondonópolis (MT) and Patrocínio (MG) may, on an experimental basis, return this packaging to the pilot plants between March and September, 2017 (read more here).

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Members (2016)

103

manufacturing companies, traders or importers of crop protection products

9

entities representing the agricultural sector

The event celebrated our 15th anniversary

A celebration united all links of the Campo Limpo System to celebrate inpEV's 15th anniversary. At the ceremony, held on December 19, 2016 in Sao Paulo, 200 representatives from across the reverse logistics productive chain of empty crop protection packaging were present. The event highlighted the contribution of the institute and of SCL in developing sustainable agriculture and paid tribute to the people and institutions that have contributed towards these goals.

To promote interaction among our guests and to illustrate inpEV's 15-year history, the event venue was decorated with panels exhibiting the main milestones of our trajectory.

Acknowledgement

During the ceremony, the deputy secretary of Agriculture and Supply of São Paulo State, Rubens Rizek Junior, emphasized that Brazil should be proud of the empty packaging reverse logistics program, which is an example of ethical practices focusing on conserving the environment.

An inpEV tribute to representatives of the System's links at the institute's 15th anniversary

Mission, Vision & Values

Mission

Contribute towards preserving the environment and the Campo Limpo System by means of self-sustainable management of the final disposal of empty packages of plant health products and by providing services in the solid waste area, with the involvement and integration of all links of the agricultural productive chain

Vision

Be acknowledged worldwide as a center of excellence in the final disposal of empty plant health packages, a reference in providing services in the solid waste and self-sustainable area in Brazil

Values

• Social and environmental responsibility
• Integrating attitude
• Innovation
• Integrity
• Safety

2016 commitments and performance

1. The goal was revised to 44,500 tons in mid-2016 due to external factors, which reduced the use of crop protection products and, consequently, disposal of empty packages: climatic instability in important agribusiness regions, increased use of new seed varieties more resistant to pests and increased smuggling of crop protection products.
2. PEA: Environmental Educational Program.
3. DNCL: National Clean Field Day, an educational and awareness action held annually in various regions across Brazil on August 18.

2016 in numbers

44,500

tons of disposed packages

94%

of the primary crop protection packaging sold in the market receives environmentally appropriate disposal

+ 210,000

4th and 5th grade Elementary School students in the Environmental Educational Program (PEA)

4,900

itinerant collection events

73

direct employees

69

units capable of receiving post-consumption product leftovers

Awards

Abrasca award in the category of non-Business Organizations with the 2015 Sustainability Report

Brazilian Environmental Award in the Solid Waste category, created by the American Chamber of Commerce of Rio de Janeiro

+ 70,000

participants in the National Clean Field Day activities, in August

35

participations in associated events, agricultural fairs, field days and symposiums (educational focus)

65

participations in events for university and technical school students

Objectives and goals for 2017

Reach 100% of the stations ready and licensed to receive improper products

Have 50 stations licensed to receive improper products

Provide adequate disposal of 44,500 tons of empty crop protection packaging

Deploy the new press to compact packaging

Develop the project Station of the Future

Corporate governance GRI G4-34

Consistent with the values that guide its actions and committed to the pillars that sustain its role as the intelligence center of the Campo Limpo System, inpEV seeks the best market practices in its management. Its bylaws reiterate the need to abide by the principles of legality, impersonality, morality and equality.

Its corporate governance structure consists of the Members' General Assembly, Board of Directors, Executive Committee and Board of Auditors. Thematic committees add to knowledge and support leadership in the areas of: Tax, Logistics, Packaging, and Product Approval.

The General Assembly is composed by the members of inpEV, the crop protection manufacturing industry, and meets twice a year to validate the institute's strategy and evaluate its performance. The Board of Directors is formed by representatives of contributing member companies and their associated companies and is responsible for defining the guidelines to fulfill the mission and social objectives of inpEV. The entities that represent the links of the agricultural chain are responsible for disseminating information and deliberations about the Campo Limpo System, adding expertise and providing guidelines for the smooth operation of the SCL.

The Executive Committee is responsible for the management, strategy implementation and performance of inpEV. It is presided by the CEO, who is an independent professional (not affiliated to any member company) appointed by the Board of Directors.The management model is based on rigid audit and control standards.

According to the guidelines of external auditors and with the opinion of its Board of Auditors, the institute discloses the result of its activities and operations on an annual basis in accordance with Brazilian accounting principles as part of its transparency commitment towards member companies and entities and the other links of the chain.

Control

With a report by an independent auditor, the institute publishes its financial statements on an annual basis

Marcelo Okamura, chairman of the Board of Directors of inpEV in 2016, and Lélio Lauretti, a member of the judging committee of the Abrasca Annual Report award during the awards ceremony. The inpEV 2015 Sustainability Report received the award in the category of non-Corporate Organizations.

Code of conduct GRI G4-56 GRI G4-56

A commitment signed by all inpEV collaborators upon admission, the Code o Conduct seeks fulfillment of the principles, values and mission of the institute and guides its social posture with regard to different stakeholders.

The document defines precepts that may bring knowledge, skills, experience and cooperation among the entire network formed by the System. It also sets forth that the conduct of the institute depends on each one so that all shall be subject to ethical principles and values that satisfy members and other stakeholders; socio-environmental responsibility, safety, respect for differences, transparency, innovation, team spirit and solutions developed in partnership with clients.

The scope and range of this instrument includes guidelines for suppliers, service providers, partners, companies and associated entities. The document addresses topics such as the work environment, conflict of interests, human rights, relationships with government entities, the responsibility of people managers, and information security.

Ethics

In addition to employees, the code of conduct guides suppliers, service providers, partners, member companies and entities

Human Resources GRI G4-10

The management of inpEV's Human Resources follows the organization's path of evolution. At the end of 2016, 73 professionals formed the institute's team, an increase of 15% compared to the previous year. The increase is mainly due to two new receiving stations that were added to the institute's administration. The professionals are divided between the administrative headquarters, in São Paulo, ten regional operational coordination offices and five receiving stations managed by inpEV: Rondonópolis (MT), Taubaté (SP), Alto Parnaíba (MA), Unaí (MG), and Boa Vista do Incra (RS) – the last two built in 2016. GRI G4-9

This increase in the number of units under direct management expands the scope of work of HR and requires special attention regarding professional qualifications and the needs of each region.

At the end of 2016, 73 professionals formed the institute's team, an increase of 15% compared to the previous year

The inpEV team at the organization's anniversary celebration in December of 2016

Collaborators per region 2016

Total collaborators

Two new central stations were incorporated to inpEV, totaling five under its direct management

The inpEV headquarters are in São Paulo where the greatest portion of employees is concentrated. Professionals also work at the 5 central stations under direct management and at 10 regional coordination sites throughout the country

Number of employees GRI G4-10

Health and safety

The topic of safety is top priority and was further emphasized in 2016,
with the approval of the budget to hire a professional from this area, starting in 2017. The goal is to reinforce the attention to this pillar at stations managed by inpEV and instruct all other units to adopt best practices (read more about the stations here).

The concern with the well-being of employees is also permanent. Those who work at headquarters have the opportunity to consult with a nutritionist on an annual basis, receive an allowance for physical activities, calisthenics and distribution of fruit in the office, as an incentive to maintain a healthy diet. inpEV offers health and dental plans and encourages periodic physical examinations.

A survey carried out between 2015 and 2016 with volunteer workers proved the benefits of healthy habits in improving blood glucose and cholesterol levels

Health and safety indicators¹ GRI G4-LA6

1 The indicator started to be reported in 2015.
2 ILO recording system: number of injuries/diseases/lost hours per MHW (man-hours worked, including overtime hours) x 1,000,000.

Training and development

Aware of the need to attract and retain talents for the organization, inpEV promotes team development actions, aimed at both leadership improvement and operational training.

To strengthen employee commitment with the results of the organization, all undergo performance assessment. The employment contracts of all employees are based on variable remuneration and aligned to the strategic objectives of the institute. The operators of the stations managed by inpEV also receive bonuses in line with the unit's objectives.

Average training hours GRI G4-LA9

31.7 hours

was the average time that each employee received training along the year