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By Adopting Traceability in Its Supply Chain This Company Managed to Become More Sustainable

In a world where sustainability is part of the DNA of business, an Ecuadorian company implemented standards to guarantee socially just and ecologically respectful practices throughout the value chain.

Trabajadoras en una planta de Agripac

 

Agripac is a leading company in Ecuador in producing inputs for the agricultural, aquaculture, animal health, seeds, fertilizers, and industrial chemicals sectors, which, - by its conviction and the new market demands, is strengthening its commitment to sustainability.

The implementation of IDB Invest's Environmental and Social Sustainability Policy and the performance standards of the International Finance Corporation, as well as the need to adopt positive market practices in terms of sustainability, have led Agripac to rethink its supply chain, with a particular focus on the traceability of environmental and social issues in procurement.

This process revealed the lack of traceability of the soybean supply chain from Bolivia, where the inability to adopt appropriate environmental and social practices in the established times and with the largest suppliers impeded to continue sourcing from that supplier.

In this sense, the decision to switch to soybean producers from Argentina responded not only to the need to align with the best market practices and higher ESG standards but also to the growing international demand for products with traceability.

Strategic Partners

The leading companies in Argentina, committed to promoting an environmentally responsible value chain, have become strategic partners for companies like Agripac in the search for more transparent suppliers.

In its drive towards sustainability, Argentina is implementing a monitoring, reporting, and verification system led by the VISEC environmental and social sustainability platform in collaboration with the Stock Exchange.


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This system ensures that Argentine soybeans and their by-products are deforestation-free, thus addressing a key concern in the Chaco region. With its rich biodiversity and its importance as a habitat for vulnerable communities, the Chaco region stands out as a critical area in the fight for environmental conservation.

The Chaco Region, which includes areas in Argentina, Bolivia, Paraguay, and Brazil, has recently seen the expansion of the agricultural frontier, driven by a series of factors, from the evolution of agricultural practices to changes in the socio-economic context.

However, this growth has been accompanied by deforestation and environmental degradation, underscoring the urgency of adopting sustainable and environmentally friendly agricultural practices.

Local Standards, Global Impact

In this sense, local regulations, such as the Forest Law in Argentina, play a crucial role in establishing legal frameworks for protecting natural resources and biodiversity.

However, their effectiveness largely depends on the collaboration of government, businesses, and civil society to ensure their implementation and compliance.

But to comply with the Performance Standards' requirements, traceability alone does not validate environmental sustainability. Certain social aspects must also be considered, such as avoiding child and forced labor and ensuring good working conditions.

In this sense, IDB Invest is working on a guide to identify geographical points in the Argentine Chaco where the occurrence of these social scourges is more likely to occur. This will allow for additional analysis and a more integral demonstration of the sustainability of the supply chain.

The transformation of Agripac's supply chain is an inspiring example of how companies can embrace sustainability as an ethical imperative and an opportunity to open opportunities in an increasingly demanding market.

By prioritizing transparency and traceability in the face of the environment, social inclusion, and economic empowerment of all actors in the value chain, Agripac is paving the way for a more sustainable future in the agribusiness sector in Ecuador and the region.

 

Authors

María Alejandra Blanco-Iturbe

Maria Alejandra is a Sustainable Business and MSME Specialist in the Advisory Division at IDB Invest. She is responsible for supporting corporates and

Carina Pasut

Carina Pasut is an agribusiness investment officer at IDB Invest, based in Buenos Aires. She is a specialist in structuring financial solutions, susta

Paula Valencia

Paula Valencia is an environmental and social specialist at IDB Invest, based in Washington, D.C. and she leads the agribusiness group within the Envi

Development Impact

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