Mensagem from the President

15 years of accomplishments

João Cesar M. Rando
Chief Executive Officer

G4-1, G4-2
inpEV was created 15 years ago and has helped build a large integrated network that retrieves and correctly disposes of 94% of the primary crop protection packaging sold by manufacturers. We have surpassed 410,000 tons of materials disposed of during this period, with a recycling rate of over 90% of the annual volume. We also started to collect leftover products that farmers kept in the properties thus resolving this difficult problem.

The institute was created as a result of the work that began ten years before. Since 1992, the discussions on the flow of empty packages were led by the National Association of Plant Protection (Andef - Associação Nacional de Defesa Vegetal), in partnership with other entities.

inpEV represents the manufacturing industry with respect to its responsibility for the reverse logistics of packaging, as defined by law. One of the institute's main contributions towards the success of this system was to be able to articulate and mobilize all links of the chain. To bring together manufacturers, distributors, farmers and the government and establish a network for sharing knowledge, generating education and engagement has been key to achieve our goals. This integrating attitude, which is one of our values, is present in all that we do. Our governance structure guarantees that these links are properly represented and is an important means for dialog and transparency.

Also, we would not be a worldwide benchmark if we had not caused disruptions. Innovation is present throughout our history, since the creation of inpEV. As the System's intelligence center, the institute has developed technologies and processes that maximize efficiency. We have invested in information technology to manage the reverse logistics process in a complex transportation network that involves, on average, 60 to 70 trucks a day, traveling to more than ten different destinations. All routes are tracked including the more than 400 receiving units. The System is so sophisticated that demand and cost per kilogram of the transported material and type of product among other information can be monitored almost in real time.

Pioneering

"We could not become a reference without making breakthroughs. Innovation is present throughout our history"

We operate intensively to educate and engage the chain and communities surrounding the receiving units by means of initiatives such as the National Clean Field Day, an annual event that has already had over 1 million people visiting these units, and the Campo Limpo [Clean Field] Environmental Educational Program, a set of materials that supports teachers in the classroom.

2016 has been challenging for all segments and has impacted our business as well. We revised the final disposal goal and reduced the volume of empty packages by 2,000 tons. This occurred based on a number of factors: climatic instability in important agribusiness regions, increase in the use of new seed varieties that are more pest-resistant and require less use of crop protection products, and increased smuggling of crop protection products.

Thanks to the efficiency and to the continuous monitoring of the entire System, we can anticipate the trend for the year and were therefore able to adjust our expectation for 2016 by the middle of the year. With this, we had time to make the necessary adjustments to our budget and processes. This effort was also undertaken by the receiving units, which needed to adjust to this new reality.

Cooperation

"With the participation of the entire supply chain, we have become a reference in the reverse logistics of empty crop protection packages in Brazil and in the world"

Difficulties faced along the year did not prevent us from developing new projects. We started to receive packaging containing leftover products after the change to Conama resolution 465/2014. We are instructing the receiving units to make necessary adjustments to receive these materials - which depends on physical works to the facilities, new procedures and a new operational licensing process. More than 60 units are already ready for this - our goal is to reach 100% by the end of 2017. The correct disposal of packaging containing leftovers has a positive effect on the environment, since it prevents farmers from inadequately storing these products in their farms or improperly disposing them. This is another demonstration of leadership in our sector.

Another paradigm shift and turning point was the conception and implementation of the Campo Limpo Plastics Transformation and Recycling S/A, which manufactures packaging for crop protection products using recycled resin, and of the Campo Limpo Plastic Resins and Lids Ltda., which produces after-market resins and lids. Besides closing the post-consumer package management cycle within the industry itself, it contributes to reduce costs of the Campo Limpo System.

We are proud of our accomplishments and will continue to strive to add value and reinvest any gains to make the SCL self-sufficient. We have the potential of sharing our knowledge with other sectors interested in developing their reverse logistics management chain for post-consumption waste. We also monitor new geographical areas and biotechnological and packaging industry advances so we can prepare for future challenges.

This strategy is reassuring when looking at our past and seeing a job well done as we prepare for the next 15 years! We thank all those who have taken part in this journey and helped make these accomplishments come true.

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