4 months

A Positive Point in the Environmental Footprint of Argentine Agriculture: 'The Level of Digitalization is Very Good'

One of the founders of Cacta, a young company dedicated to certification management and traceability, highlighted the work being done by producers in the core agricultural area. Each generation undertakes according to the models of its time. What used to mean long hours away from home, sometimes for days or weeks, globalization now allows combining different production models. The Argentine agro-industry contains many stories of that nature. From agricultural producers who cultivated the land and passed on the smell of the soil and contact with production animals, to young entrepreneurs with the same drive and vision, but who bet on sophisticating that primary generation in the field. Cacta is an Argentine company that followed those guidelines. It was founded by José Luis Cebe and Luciano Sambataro, who are now located thousands of kilometers apart from each other, one in Tucumán and the other in Frankfurt, Germany, but with enough connection and understanding to run a company that bets heavily on environmental measurement management and the corresponding measurement of indicators. Sambataro spoke with Infocampo a few days ago at the premises of the Argentine Rural Society in Palermo. There, just meters away from the Hereford Centennial Expo, he explained in detail the current state of the company and the vision of the team moving forward. 'Cacta is a company that develops environmental measurement software. The idea came about approximately two and a half years ago, when I went to Germany to pursue a PhD and began to deeply understand what environmental measurement is all about,' Sambataro commented. HOW TO BETTER MEASURE THE ENVIRONMENTAL FOOTPRINT -What methodologies exist and what is Argentina's potential? -Agriculture is a sector with a track record of innovation. In fact, as we developed this company, we created the measurement software and realized that it has a lot to show in terms of sustainability potential. That's how the idea was born, we are five partners. We have an IT team in Argentina, and we are dedicated to the holistic measurement of environmental impacts. -What attracts you to the world of agricultural producers, given that your academic career had not fully immersed you in that field? -In reality, I am a civil engineer. But sustainability, as a concept, encompasses all industries, and particularly what we do, which is to apply life cycle analysis methodology. That has potential that can be applied to any industry. In Europe, we see that the construction industry is very advanced in this area. -Why? -Well, cement has always been in the spotlight. It’s an industry that represents 6% of global carbon dioxide emissions. And we saw that Argentina had enormous potential to showcase. We had lemon production in Tucumán, which led to the vision we developed and resulted in the software we have in the market today. -What do you think are the responsibilities an entrepreneur has towards their company? -First, to be clear about the vision, know where to go, and set the foundational pillars. In our case, the vision was clear: to develop a tool that would truly generate positive change, and for that, you need to first measure and know what the reference scenario is to then start applying practices that lead to a sustainable business model over time. Also, work ethics are one of the pillars we have as a business model. -How diverse is Argentine agriculture when analyzed region by region? -In terms of measurement, it's transversal to all regions, but what we see is that the level of information or how digitized the agricultural industry is, whether it be in the core region with extensive or specialty crops, like in the North, is very high. The data is available. -What does that allow? -Automating the measurement. It’s about transforming that data into new indicators. We see that the level of data generation and digitalization is very good. -What do you think Argentine agriculture will be like in 10 years? -I believe that the economies that are changing first or are already required to demonstrate or measure sustainability impact are those that first reach the consumer. Today we see a growing demand in Europe for traceability and the measurement of more and more indicators. What started with the carbon footprint and the water footprint is a very important issue. That agenda, which in Europe was driven by the Climate Law and the 'Green Deal,' has already arrived in Argentina, and very quickly. -How are companies adapting? -We are seeing a change from the beginning of the year to the end, in the sense that companies now need to start measuring. That's why I believe that in 10 years, this will not only be a reality, but it will also be a reason why one cannot enter certain markets. -You live in Europe. What do you encounter each time you go out into the field there? –Over there, regulations are obviously stricter when it comes to sustainability. However, here we have the potential that practices tend to be very environmentally friendly. In no-till farming, we are pioneers, and we have the potential to demonstrate and compete, not only in terms of productivity but also in showing that our way of managing the land is more sustainable. We are realizing that we are doing it well, and that is one more reason to be proud.

5 months

He Created Environmental Impact Measurement Software and Asserts: 'Sustainability Is Here to Stay'

This is about a citrus producer from Tucumán who, together with a group of friends, founded an environmental certification company. 'This isn't about selling at a higher price; it's about not being left out,' he asserts. 'Cacta comes from cactus, which is the plant that grows in the desert despite extreme climatic adversities. It gives life to the desert, to the animals, and it stores water. It also blooms. And blooming for us means understanding that Argentina can rise again with innovation and technology.' José Luis Cebe, 32, visited the recent Aapresid Congress in Buenos Aires. His company 'Cacta' was founded just two years ago and was the way he envisioned addressing some of the commercial 'pains' that Argentine agricultural producers experience today. 'This didn't arise out of necessity, but rather out of the obligation as an agro-exporting company to show reports and demonstrate to the world what we do. Sustainability is here to stay,' he defined in a conversation with Infocampo. What did they do? Along with a group of friends spread across Europe, including Barcelona, Spain, and Frankfurt, Germany, they decided to create environmental impact measurement software. 'We follow the life cycle assessment methodology automatically, where we collect data from producers automatically so they don't have the administrative burden of manually entering the data. That is a burden for them,' he explained. Cacta currently measures not just one, but more than a dozen measurable indicators. These include variables such as: - Total carbon footprint - Potential acidification - Water eutrophication - Water ecotoxicity - Carcinogens - Non-carcinogens - Ozone depletion - Smog - Non-renewables - Minerals and metals 'We have an optimized algorithm that records more than 70,000 emissions into soil, air, and water, and 27,000 environmental records,' they state on their website. The youth of his company led him to visit the event, but he has not yet set up his own stand. The goal is part of Cebe's dreams, but he knows that today it is more important to solidify certain processes, typical of entrepreneurship and the ups and downs of agriculture. And of Argentina. 'The educational work is being done well because at any agricultural congress we attend, the main thematic axes are related to sustainability. But I do think that the ways of incorporating environmental and sustainability management into producers are proving difficult,' he analyzed. And he emphasized: 'The message is well delivered. We need to refine the how because we need to measure to know where we stand.' 'The producer who is reluctant to incorporate environmental or sustainability management into their company will be left out of the market. It will be extremely difficult for them to sell their products, and they will have no choice but to incorporate, measure, and demonstrate their environmental impact,' he asserted. And he added along the same lines: 'Incorporating environmental management is not about selling at a higher price; it's about not being left out of the markets. Let's not pretend to sell our product at a higher price if we show an environmental impact certificate; this is simply to ensure that in the medium or short term, we are not left out.' Beyond intentions, putting into practice the possibility of keeping the productive wheel turning can become a thorny path. Cebe knows this, but he seeks to keep Cacta moving and remain faithful to the entrepreneurial drive. Sometimes, the relationship with larger-scale companies with experience in the sector is encouraging due to their feedback. But in many cases, the established routine leaves no time for formal presentations and explanations. 'It happens to me that when I want to explain this to some of the 'giants' in the chain, it is difficult to get them to listen. But, well, we have to keep trying to show what we do, present it, and work to make it known, and for good ideas to become real,' he stated. But he acknowledged: 'Trust and the legal framework, and intellectual property are well established. We don't have problems with that. What we do have a problem with is communicating what we do because we are not always listened to by large companies. They have their day-to-day, which is an overwhelming rush, and sitting down to listen to four entrepreneurs who developed a system can be difficult for them.' 'But we must never stop knocking on doors because I'm sure that the only way for Argentina, as an agro-exporting country, to incorporate environmental management is if all actors in the chain are integrated,' he defined. However, the daily grind takes its toll. 'Every day, I have fears and worries about the success of Cacta. But I also have a lot of faith because it is a very new and innovative product. The guys behind this are geniuses. I think we feel the same as anyone who forms a startup,' he concluded.

5 months

Great News from Argentina, Consolidating Our Strategic Alliance.

This week we have been consolidating our strategic alliance with Banco Galicia. Together, we are working to drive the new era of sustainable finance. With this alliance, we hope that more and more farmers will adopt sustainable management practices, thus accessing numerous benefits such as preferential rates, export guarantees by complying with European and North American regulations, and greater international positioning. Thank you all for being part of this incredible achievement! Kevin Badano Leon Rouges Yemila Sanchez. This reaffirms the role of Cacta Sustainability Solutions as a strategic partner for the bank.

8 months

Transforming the World: Discover the Sustainable Development Goals.

On September 25, 2015, world leaders adopted a set of global goals to eradicate poverty, protect the planet, and ensure prosperity for all as part of a new sustainable development agenda. Each goal has specific targets to be achieved over the next 15 years (2030). Therefore, the Sustainable Development Goals have been agreed upon by all governments. However, their success will depend on the actions taken by everyone, both companies and governments. The SDGs offer the opportunity to develop and implement solutions and technologies from the business sector, allowing the largest challenges established in terms of sustainable development to be addressed. At the same time, these are part of a global agenda for the development of our societies. They establish that market-leading companies must demonstrate that the businesses they conduct help lead us towards sustainable development. Despite seeming complex to align with these objectives, the truth is that it is not. It's a matter of conducting a thorough materiality assessment, identifying productive processes within companies, and obtaining clear and reliable traceability. The United Nations assures that there are key benefits to generating alignment with sustainable development goals, including: Improving operational efficiency throughout the supply chain, strengthening relationships with customers, consumers, and suppliers, as well as reducing environmental and health and safety risks.

8 months

Unraveling the Green Engine: The Magic behind Cacta's Operation

We all know the impact of climate change on the planet. But... Did you know that the agricultural system accounts for nearly one-third (31%) of global carbon emissions? And this is just the tip of the iceberg. Our planet already exceeds defined limits for other categories such as biodiversity loss or resource depletion. At Cacta, we understand the magnitude of the problem and the need to take action to reduce our impact and improve our relationship with the environment. That's why we've designed a pioneering environmental management tool exclusively for the agricultural sector. It is the first of its kind, capable of merging productive information with environmental impact indicators backed by science. The tool consists of three modules: The first one (A) focuses on semi-automatically extracting data from agricultural clients by integrating it into their management systems. In the second module (B), we focus on classifying and transforming the information into an inventory of environmental emissions for each client. We use the Life Cycle Analysis (LCA) methodology according to ISO 14040/44 regulations, following European standards to calculate the inventory phase. During this stage, we consider everything from the production of various inputs and energies to their application in the field, taking into account local factors such as soil pH. The third module (C) focuses on translating this information into environmental impact indicators, following the recommendations of the European Commission. We present these indicators visually in interactive dashboards and product information cards. Additionally, the tool includes a benchmark and an Eco Score. Scope: The current version of Cacta Agro focuses on determining the environmental impacts associated with the production of agricultural crops from 'cradle' to 'gate.' This involves computing the inventory from the generation of raw materials and energies to the harvesting of the product. By extracting information directly from various activities, we associate the use of inputs or machinery with each particular batch and crop. For cases where it is not possible, the mass allocation method is applied. For the particular case of machinery hours, we use area weighting.

9 months

Deciphering the ESG Enigma: The Power and Promise of Corporate Sustainability

Environmental, Social, and Governance (ESG) metrics have existed for over a century. These criteria originated mainly from socially conscious investors who wanted to align their investments with their values, though initially lacking a clear execution plan and an efficient way to measure results. Initiatives like the 'Quaker Friends Fiduciary No-sin investments' (1890) are known today as the seeds of ESG. While these proposals had excellent intentions, the lack of an execution plan and an efficient way to measure results kept the world for almost a century without any advancement in improving environmental metrics and especially without a way to globally standardize the measurement of how we interact with the planet. Unfortunately, it took multiple disasters such as the Chernobyl disaster (1980), the detection of the ozone layer hole in (1985), or the Exxon Valdez disaster in (1989) for governments, entrepreneurs, activists, among others, to truly awaken to the need to develop a methodology and guidelines to encourage and corroborate that business practices could be more responsible towards the planet. It seemed that finally, the environmental issue was starting to be addressed. However, other issues quickly arose, and experts identified that the solution had to be more comprehensive and consider many other aspects that were not being addressed at the moment but were highly correlated. During the 1990s, with the advent of the digital era, it became possible to firsthand learn about social problems no matter where they occurred. Concepts like Corporate Social Responsibility (CSR) began to consider their impact on society and the environment, as well as their corporate governance practices. It was also during this period that various standards and guidelines for sustainability reporting were developed, such as the Global Reporting Initiative (GRI). Between 2000 and 2010, several notable financial events occurred that had a significant impact on the global economy. The dot-com bubble (2001), the accounting frauds of Enron (2001) and Worldcom (2002), and the subprime mortgage crisis (2007) led to job losses, stock price declines, and widespread loss of confidence in the financial system and responsible business practices. The lessons learned from these events helped shape the current financial regulatory environment and led to the development of new non-financial instruments and regulations aimed at preventing similar crises in the future, but above all giving a responsible purpose to the use of capital among the investment community. The final blow to bring what we now know as ESG factors into play has been the emergence of more and better data, as well as a better understanding of the environmental and social pressures of modernity, which can now be regulated and legitimized thanks to the development of financial instruments that are accessible to the investment community. Many investors and asset managers now consider ESG factors when making investment decisions, and many companies are incorporating ESG considerations into their business strategies and reporting practices. Environmental, social, and governance (ESG) data tends to capture non-financial factors that were traditionally absent in financial analysis: business management of energy and water use, waste generation, employee rights and working conditions, community involvement, data privacy rights, and more. Traditional indicators of corporate responsibility and transparency. Today, ESG is considered key in assessing the financial performance and long-term sustainability of a company trading publicly and internationally. It has become an integral part of the investment process, and more and more companies recognize the need to address ESG issues to meet the expectations of their stakeholders and improve their overall performance. In short, as Rochelle March, Head of ESG Product at Dun & Bradstreet, comments, “ESG encapsulates almost everything that can reflect how companies operate within society and the environment, and whether that mode of operation is sustainable and responsible”.