A sustainable turn for Ecuador's sugar industry
A sustainable turn for Ecuador's sugar industry
Project summary
Azucarera Valdez, the second largest sugar producer in Ecuador, partnered with the eco.business Fund and Banco Produbanco to implement a responsible sourcing program with its network of over 400 sugarcane suppliers. This initiative was born out of a commitment to environmental protection, sustainable resource use, and climate resilience. Having already achieved Bonsucro certification within its own operations, Azucarera Valdez set out to extend sustainable practices across its entire supply chain. The responsible sourcing program, supported by the eco.business Fund and Banco Produbanco, aimed to redefine business practices and contribute to the wellbeing of both ecosystems and communities through a holistic, collaborative approach.
Purpose of the partnership
The partnership was driven by the need to address significant challenges in Ecuador’s sugarcane industry, including soil degradation, extreme weather events, and the imperative for sustainable growth. The eco.business Fund acted as a catalyst for transformation, working with Banco Produbanco and Azucarera Valdez to scale up the adoption of sustainable practices from the roots up. The vision was to create a responsible sourcing program that would serve as a model for the industry, promoting environmental and social responsibility at every step of the supply chain.
How we worked together
The collaboration began with the creation of a robust management system, including Key Performance Indicators (KPIs), monitoring mechanisms, and capacity-building strategies to empower all stakeholders. Communication channels were enhanced to ensure transparency and foster collaboration among farmers, workers, and management.
A key component was conducting thorough Environmental and Social (E&S) Risk Assessments to identify and prioritize risks within the supply chain. To address these challenges, the team introduced innovative tools such as Supplier Geolocation and E&S Traceability, enabling the tracking of high-value conservation areas and water availability.
Additionally, a Regenerative Agriculture Pilot Program was launched to test and promote practices that increase efficiency and productivity, minimize soil disturbance, promote integrated pest management, manage nutrients effectively, and enhance the overall resilience of the crop. Technical assistance and knowledge-sharing empowered suppliers to adopt best practices, ensuring that sustainability was embedded throughout the value chain.
This partnership supports the UN Sustainable Development Goals by amplifying the adoption of sustainable practices across the sugar value chain, promoting eco-efficient water management, building resilience to climate change, and fostering gender inclusion. The project’s recognition by Bonsucro affirms its commitment to excellence and its impact on critical environmental and social issues. By engaging a diverse array of stakeholders, the initiative has set a blueprint for collaboration, innovation, and a sustainable future in Ecuador’s sugar industry.
