Case study: How Lavoro Group creates economic value for its stakeholders
Lavoro Group was established in 2017 and today has a large footprint in Latin America, with operations in Brazil, Colombia, and Uruguay. Through acquisitions of more than 20 small and medium-sized companies, Lavoro has become the largest agricultural input distributor in Brazil, as to revenue and market share. Lavoro Group always seeks to deliver sustainable value to all its stakeholders and maintain its competitiveness Tweet This!, which is fundamental to the success of its business.
This case study is based on the 2021/2022 Sustainability Report by Lavoro Group, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
In 2022/2021, Lavoro Group’s total value added to distribute reached BRL 1,545,487 million. In order to create economic value for its stakeholders Lavoro Group took action to:
- create economic value for employees
- create economic value for indirect suppliers
- create economic value for the state
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With this case study you will see:
- Which are the most important impacts (material issues) Lavoro Group has identified;
- How Lavoro Group proceeded with stakeholder engagement, and
- What actions were taken by Lavoro Group to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021/2022 Sustainability Report Lavoro Group identified a range of material issues, such as expanding farmers’ businesses and productivity, climate change, food safety, business ethics and integrity, innovation, quality and portfolio security. Among these, creating economic value for its stakeholders stands out as a key material issue for Lavoro Group.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Lavoro Group engages with:
| Stakeholder Group |
| Shareholders |
| Employees |
| Clients |
| Direct and indirect suppliers |
| Financial entities – banks and investment management companies |
| Agribusiness associations |
| Workers’ unions |
| Third sector organisations linked to social and environmental issues |
| Institutional partners from the public and private sectors |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Lavoro Group engaged with its stakeholders through specific individual meetings with representatives of shareholders, employees, executive and local leaders, the Board of Directors, agribusiness institutions, NGOs, business partners, customers, representatives of the financial sector, experts, suppliers, financial institutions, and representatives of public environmental bodies.
What actions were taken by Lavoro Group to create economic value for its stakeholders?
In its 2021/2022 Sustainability Report Lavoro Group reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022/2021, Lavoro Group paid BRL 188,464 million in employee salaries and BRL 175,343 million in benefits.
- Creating economic value for indirect suppliers
- In 2022/2021, Lavoro Group paid BRL 411,385 million to indirect suppliers.
- Creating economic value for the state
- In 2022/2021, Lavoro Group paid BRL 186,050 million in taxes.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Lavoro Group, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.lavoroagro.com/wp-content/uploads/2023/04/Lavoro-Sustainability-Report-21-22.pdf
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