Climate

Reducing Our Footprint by Enhancing Our Processes

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A Changing World

Around 15% of global greenhouse gas emissions (GHGs) are related to agricultural production. That number is higher when you consider forestry and land use change. As climate change affects rainfall and temperature, the location and nature of crop systems are likely to change. We believe that our sector will need to adapt. At the same time, global population is expected to grow significantly – and food supplies must keep up while diminishing waste.

The global map of agriculture is changing and trade will help address supply shocks and maximize total environmental efficiency. To ensure Bunge is ready for the future, we are working to integrate climate scenario analysis more fully into our long-term planning and risk management. Also, we've enhanced our approach and are presenting, for the first time ever, a comprehensive analysis of emissions related to our supply chain, known as Scope 3 as per the GHG Protocol.

We are aware of our responsibility to our communities and to our stakeholders. Our aggressive but realistic targets to reduce our GHG emissions by 10% per metric ton of production are valid for Scope 1 and Scope 2 of the GHG Protocol, while we are also targeting emissions reductions in agricultural production by our suppliers. We are making good progress already by improving efficiency in our facilities, scaling up our use of renewable energy sources, and promoting sustainable agricultural practices. 

As the world commits to keeping global temperature increases below 2 degrees Celsius, we must do our part to help meet this goal.

GRI 103-2

Energy Use & Emissions Reduction

Bunge continues to pursue a variety of energy-efficiency programs that enable real-time monitoring and analysis of energy consumption to drive improvements.

We use renewable energy, including sunflower husks, biomass and wind power when possible. As a leading producer of ethanol in Brazil, our sugarcane mills run on and produce renewable energy that gets distributed to the grid. As of December 31, 2018, our total installed cogeneration capacity was about 322 MW, with approximately 126 MW available for resale to third parties after supplying our mills’ energy requirements, representing approximately 600,000 MWh of electricity.

Reductions in emissions and energy intensity also continue. We are on track to reach our goal of a 10% reduction for emissions and energy by 2026.

GRI 103-2, GRI 302-4, GRI 302-5, GRI 305-5

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Emissions  & Energy Intensity  

2018 Emission Intensity (Scope 1 and Scope 2 emissions)

43.56 kg CO2e/metric ton

2018 Energy Intensity Ratio

1.18 gigajoules/mt

For more information on our Scope 1 & 2 emissions, visit our GRI Index.

Supply Chain Emissions

Bunge’s current emissions reductions targets focus on mitigating the increase of COin the global atmosphere. Our goals have encompassed emissions known as Scope 1 (direct emissions from our facilities) and Scope 2 (indirect emissions, from purchased electricity). Together these figures represent a small portion of the company’s entire emissions footprint.

In order to better understand our broader climate footprint, and to support the commitment to greater transparency, this year Bunge has assessed for the first time our GHG emissions from the value chain including upstream and downstream sources. This emissions measurement is known as Scope 3.

To measure our value chain footprint, we followed the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. This standard provides requirements and guidance for companies to prepare and report data from 15 distinct categories, providing companies with a systematic framework to understand its value chain related emissions.

Our assessment sourced data from within the company, including primary data from our suppliers and internal business uses, as well as secondary data based on extrapolations and benchmarks. We found that the vast majority of Bunge’s Scope 3 emissions are from upstream sources, falling with the Standard’s Category 1: Purchased Goods and Services. In other words, our purchased agricultural commodities make up over 97% of the category, and represent the largest source of emissions in our value chain. Other sources are mapped in the chart below.

By assessing and disclosing our Scope 3 emissions, we are now able to find new solutions that improve our environmental performance and create a more sustainable value chain. Learn more about our Scope 3 data and approach in the GRI Index.

Supply Chain Emissions

Bunge’s current emissions reductions targets focus on mitigating the increase of COin the global atmosphere. Our goals have encompassed emissions known as Scope 1 (direct emissions from our facilities) and Scope 2 (indirect emissions, from purchased electricity). Together these figures represent a small portion of the company’s entire emissions footprint.

In order to better understand our broader climate footprint, and to support the commitment to greater transparency, this year Bunge has assessed for the first time our GHG emissions from the value chain including upstream and downstream sources. This emissions measurement is known as Scope 3.

To measure our value chain footprint, we followed the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. This standard provides requirements and guidance for companies to prepare and report data from 15 distinct categories, providing companies with a systematic framework to understand its value chain related emissions.

Our assessment sourced data from within the company, including primary data from our suppliers and internal business uses, as well as secondary data based on extrapolations and benchmarks. We found that the vast majority of Bunge’s Scope 3 emissions are from upstream sources, falling with the Standard’s Category 1: Purchased Goods and Services. In other words, our purchased agricultural commodities make up over 97% of the category, and represent the largest source of emissions in our value chain. Other sources are mapped in the chart below.

By assessing and disclosing our Scope 3 emissions, we are now able to find new solutions that improve our environmental performance and create a more sustainable value chain. Learn more about our Scope 3 data and approach in the GRI Index.

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Managing Climate Risks and Opportunities

Climate change poses known risks for Bunge. For example, future additional regulations or taxation of GHG emissions, or policies related to national emission-reduction plans, could affect costs for our business. Globally, adverse weather, including as a result of climate change, could affect the availability and price of agricultural commodities and products as well as our operations and results. These same possibilities could also create opportunities for our business. They could result in a greater demand for our crops grown in unaffected regions. These climate-related effects could also present opportunities to leverage our global asset network to meet demand in times of shortages.

Climate-related risks and opportunities are regularly assessed by our teams, and overseen by our Board of Directors, to inform decision-making and business planning. You can learn more about or climate risks and opportunities outlined in our Annual Report.

GRI 102-11, GRI 103-2, GRI 201-2

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Notes on Data

Bunge collects activity data and calculates Scope 1 and Scope 2 emissions using the Brazil GHG Protocol Programme, the IPCC Guidelines for National Greenhouse Gas Inventories (2006), and the U.S. EPA Mandatory Greenhouse Gas Reporting Rule; national sources such as the U.S. EPA, the Argentine Secretary of Energy, and the Brazilian Ministry of Science and Technology; and local sources. Our inventory boundaries are determined based upon operational control. Silos, ports and offics are not included for not being relevant emissions sources.

Energy intensity calculations include fuel, electricity purchased, steam purchased and energy sold out.

GRI 302-3, 305-1, 305-2, 305-4