Product Labeling

In accordance with international regulations and internal specifications, it is essential to identify all legal or other requirements that apply to each of the companies and to their products and services.

Abengoa has also established periodic evaluation of compliance with all prevailing requirements so that, in the event of non-compliance, the troubleshooting (TSR) and Improvement Action (IA) applications are employed to duly record these instances for subsequent control and follow-up.

These requirements include all of those relating to product and service information and labeling. There were no incidents of non-compliance in this regard reported through Abengoa’s information channels in 2009.

In the case of equipment and systems issued by Telvent in the European Union, an EC Statement of Compliance and EC Label are required (in accordance with EC regulations, EC labeling of equipment takes place after generating the technical report and following product assurance through the required battery of tests).

As far as labeling of Bioenergy products is concerned, the requirements for which are determined by national or international regulations regarding their transportation or their status as livestock feed, products are categorized into three types:

  • Bioethanol: Regardless of the means of transportation, European bioethanol must be accompanied by the corresponding safety and security form, as well as a consignment note. Given that the product is shipped in bulk, there is no labeling involved, although the same cannot be said for the container, which must be identified in compliance with the requirements of European Law regarding road or rail transportation of hazardous goods.
  • DDGS: Since it is shipped in bulk, DDGS is exempt from labeling in Europe. However, due to its status as livestock feed, the product is shipped along with documentation that includes information on the shipper and commercial authority, the technical name of the product, the Statement on Genetically Modified Organisms (GMO), if applicable, protein content and batch traceability.
  • Sugar: Regardless of how it is transported, sugar produced in bioethanol plants in Brazil must be accompanied by a laboratory analysis demonstrating compliance with contracted specifications: polarization, color, moisture and ashes, as well as an invoice indicating volume and consignment value.

Sales of these three products as a percentage of total sales for Abengoa in 2009 stood at 19.35%.

As regards construction work, it is generally the customer that sets requirements, guidelines and the types of material to be fitted. All of the information required for responsible use of the completed work is included in the documentation accompanying the product or service supplied: safety and security forms, installation instructions, user manuals, electrical installation sheets, legalizations, service start-up, connections, recommendations, etc.

Customer Privacy

Abengoa guarantees the validity, integrity and security of all information handled by the company, particularly in regard to all aspects of customers’ personal data.

With the aim of ensuring security measures associated with communications and information systems, there is a security policy statement that governs all Abengoa businesses and companies. This statement covers the implementation of an Information Security Management System as a tool serving to fulfill security objectives, with these encompassing confidentiality, integrity and availability.

The Information Security Management System explicitly reflects every aspect related to policy, standards and obligations applicable to the users of information systems, regardless of whether or not they are Abengoa employees.

The Information Security Management System sets down the policy on usage of information systems, management of security-related incidents, password policy, security in the workplace, anti-virus protection, wireless networks, system administration, perimeter security, protection of personal data and information classification.

There were no reports via Abengoa information channels of any claims filed with respect to customer privacy and personal data leaks at Abengoa companies in 2009.

Nor were there any fines recorded for failure to comply with regulations regarding the supply and use of products and services offered by each Abengoa company.

Marketing Communications

Abengoa has not signed up to any standard or voluntary code related to marketing, advertising or other promotional or sponsorship activities. However, the company has a demanding and stringent internal control procedure for external communications that is included under the Common Management Systems.

This control system involves a chain of internal authorizations, which are ultimately submitted to the Chairman’s Office. All heads of the areas involved in communication content must authorize and complete the information in order for it to be consistent, accurate and complete. This process ensures that the communications generated neither contravene the company’s principles and values nor violate its Code of Conduct.

There were no reports via Abengoa information channels of any claims filed with respect to this matter at any Abengoa company in 2009.

Case Study Bioenergy Product Labeling

During the bioethanol production process that takes place at Abengoa Bioenergy’s European plants, DDGS (Distillers Dry Grains with Solubles) are produced from the production of bioethanol through grain starch conversion by means of fermentation. DDGS is a vegetable source of protein, energy, fiber and vitamins and is used as a raw material for producing livestock feed. As a product involved in the food chain, DDGS complies with all national and international regulations in force relating to DDGS production, storage and dispatch control.

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During the bioethanol production process DDGS are produced, that is used as a raw material for producing live stock feed

DDGS is loaded directly onto a truck or train using front-end loaders, and does not therefore require product labeling given that it is not packaged. However, in accordance with regulations governing the circulation and utilization of raw material for livestock feed and the circulation of compound feeds, the product must be accompanied, at the very least, by a document containing information on the forwarder, the commercial authority, technical product name, gross protein content, as well as a statement, where applicable, on the presence of Genetically Modified Organisms (GMO).

Further requirements include the corresponding bill of lading, which contains details on, among other things, load weight, product destination, transportation agency and the batch number of the product, which, in compliance with prevailing regulations governing traceability and security of livestock feed, has an associated record of product control data generated during production, storage and dispatch. This record is available to the customer upon request.

Abengoa Bioenergy produces nearly 0.5 Mt of DDGS annually at its European plants in compliance with all requirements specified under the regulations governing livestock feed production, circulation and use.