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Environmental Management
La Serenísima knows that to be successful, companies must care about people and the environment.
Therefore, our environmental commitment involves the entire value chain and
industrial processes, with a view to improving our performance through the implementation
of Management Systems and the setting of progressive Improvement Objectives and
good practices.

Our company operates with a strong focus on sustainable development. This means protecting
the future by taking sound decisions in a context where fresh water supply is scarce, natural
resources and biodiversity are declining, and climate change presents new challenges every day.
All these elements are vital for world population and also, for our company’s development.
Consequently, we are committed to meet the following
8 environmental objectives on a year-to-year basis:
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Solid waste

Thanks to our integrated solid waste management system, solid waste is sorted at each process site to reduce waste generation and increase waste recycling.
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Water resources

Responsible fresh water consumption is very important for our company, both in terms of product quality and environmental impact.
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Energy consumption

Efficient use of energy results in multiple advantages for industries, as it helps reduce operating costs and greenhouse gas emissions.
SOLID
WASTE
Thanks to our integrated solid waste management system, solid waste is sorted at each process site to reduce waste generation and increase recycling and reuse. All employees are properly trained to help reduce, recycle and reuse waste.

In 2014, as part of the ISO 14001 compliance goals, the Pascual Mastellone Industrial Complex located in General Rodríguez was proud to meet the 75% recycling goal vs. landfill disposal. For 2015, it expected to ramp up the goal to 78%.

Waste disposal :

In 2014, total waste was disposed as follows: 64% recycled 31% landfill and only 5% incinerated. At the Pascual Mastellone Industrial Complex in General Rodríguez, 83% of waste was recycled, 14% disposed for landfill and 3% disposed for controlled incineration.

New waste management initiatives:

New waste management initiatives:
• High energy content waste: At the Pascual Mastellone factory waste is partly converted into fuel by an authorized operator. Waste with high energy content is collected at Mastellone premises for incineration in furnaces. Once ignited in the furnaces, high temperatures, chemical conditions and flue gas retention times ensure complete combustion of organic matter, verified by furnace carbon emissions under 110 ppm. Some of the advantages of this initiative include:
- reduction of landfill waste
- transformation of waste into supplies for other industries
- reduction of non-renewable fuels, reduction of GHG
- reduction of environmental liabilities and pollution

As a result, 42% of municipal domestic waste generated in November and December 2014 was used as fuel for other industry, resulting in less demand for fossil fuel, and less greenhouse gases.

Materials used from recycled materials:

By inserting a product back into the production cycle before dumping it, we help narrow the gap between resources consumption and waste generation. This leads to important reductions in greenhouse gas emissions, costs of new supplies and landfill waste amounts.

Waste management at the facilities:

In the Plastic Bottling sector, the new system permits reject bottles (not meeting retail sale standards) to be reused when bottling equipment enters into the “fine tuning” stage. Reject bottles are ground at a mill to produce new “Regrind” bottles. Regrind material is also used in multilayer bottles used to pack Mastellone Hermanos S.A. milk, and in bottle “domes”. About 193,300 kg of bottles are reused per year, representing 8.3% of total production.

Sustainable containers and packaging:

• All Mastellone Hermanos S.A. Tetra Brik products are FSC certified.

• Fluid milk sachets and polyethylene labels used in plastic bottles are fully recyclable, according to the applicable recycling certification.

Environmental certification:

• As a result of our strategic alliance with Tetra Pak, all La Serenísima products packed in TetraBrik containers bear the FSC (Forest Stewardship Council) logo, certifying that the carton used comes from a sustainable forest management source.

• Our company has teamed with Ecoplas (a civil Association representing the plastic resins sector and promoting sustainable development of plastic industry) to obtain the "recyclable polyethylene” certification.
WATER
RESOURCES
Responsible management of fresh water consumption is very important for our company, as it impacts not only on product quality, but also on the community and the environment.

In line with the “continual improvement” premise in efficient use of water, several actions have been adopted. These actions have brought about good news: reduction in groundwater consumption and increased use of recycled water. In-company communication campaigns contributed to raise awareness about good and sustainable use of our water resources.

Actions taken to cut down water consumption at all Mastellone Hermanos plants:
- Monitor wells frequently in all production areas
- Set goals for water use in each plant
- Shorten rinsing times in different facilities
- Reduce consumption of cooling water required in some processes
- Regulate water flow in various processes
- Install automation systems
- Reuse water (from truck washing, cooling, etc.)
- Recover water from milk powder spray drying
- Adjust washing frequencies
- Modify equipments to make them more water-efficient

Groundwater extraction :

A water consumption improvement plan has already been implemented at Pascual Mastellone Industrial Complex. In 2014, the complex met the environmental goal set for groundwater extraction and the statutory limit established by the Water Resource Use permit.

Recycled water :

In 2014 Mastellone Hermanos S.A. and Mastellone Hermanos San Luis recycled 29% of total water used, reconditioning it when possible for reuse in the same process or in other processes. This action also helps reduce well water consumption.
The 29% of recycled water over total water consumption was calculated based on the volume of water (m3) extracted from different sources (groundwater, commercial water, reused water) at processing plants (located in Mercedes, Junín, Las Varillas, Rufino, Ranchos), manufacturing plants (located in Trenque Lauquen, Gral. Rodríguez, Leubuco, Los Charas, Tandil, Canals, Mastellone San Luis) and the Albariños Warehouse. In most of our facilities well water is reused in applicable processes.

Reclaimed water:

In 2014 water resulting from milk powder spray drying was reclaimed and reused in applicable processes.
Total water recovered from this process reached 26,910 m3/month, of which 21,172 m3/month were reused and the rest was disposed of as overflow in the treatment system.
Water recovered from spray-drying also helps reduce groundwater consumption at Pascual Mastellone Industrial Complex.

Effluent generation:

Treatment of wastewater generated by our industrial operations is also part of the environmental management strategy applied for water use and recycling. Mastellone Hermanos uses waste stabilization ponds in most of its plants to treat industrial wastewater biologically. This system has proved to be efficient in treating liquid effluents generated by the dairy industry, in view of their high organic load (including aerobic and anaerobic organisms that stabilize organic matter), main component of wastewater.

Our major wastewater treatment site is located at the Pascual Mastellone factory. The nine stabilization ponds in series are located 5 km from the factory in Gral. Rodríguez. The first five ponds are anaerobic (bacteria without oxygen demand) and the other four are facultative lagoons (with anaerobic and aerobic bacteria). The total lagoon complex forms a water basin covering 27 hectares and containing 508,000 m3 in total.

This system is complemented with windbreaks of different heights, composed by 70,000 trees approximately. The highest windbreak rows are made of Eucalyptus, which act as a wind “buffer” to avoid waves in the ponds. The medium and lower windbreak rows, made of Casuarinas or Conifer trees up to 10 meters high, and Crataegus (hawthorn), respectively, act as a "green lung".

In order to further minimize environmental impact and control wastewater quality, Mastellone Hermanos has redirected its actions towards improving quality and quantity of treatable effluents. To this end, instruction booklets, preventive monitoring plans at waste generation sites and comprehensive maintenance of the entire treatment system were implemented.
ENERGY
CONSUMPTION
Efficient use of energy has interesting benefits for the dairy industry, which include less operating costs and reduced greenhouse gases that affect the environment and our quality of life.

Reduction of energy consumption:

In view that energy consumption impacts directly on the company’s environmental footprint and on its operational expenses, Mastellone has aligned its strategy towards a more efficient use of energy, aiming at reducing its consumption on a month-by-month/year-by-year basis.
In order to meet this goal, we monitor closely the adequate functioning and operating performance of all plants. A thorough maintenance of equipments helps ensure proper performance and energy efficiency.

Implemented actions:

“Efficient Energy Use” Campaign During 2014, electric bulbs were replaced at Pascual Mastellone Industrial Complex, for energy-efficient lamps including blended lamps, mercury vapor bulbs, fluorescent tubes, halogen and/or sodium-vapor lamps, and LED lamps. Energy-efficient lamps were installed in the following areas: Milk Powder III, IV, V, Small Unloading Dock, Ultra, Packaging, Commercial and HR offices. Fluorescent tubes were replaced by LED tubes, with the following results:
- Less eye strain symptoms
- Energy savings
- Reduced environmental pollution

Based on these results, similar actions were deployed in other facilities, supported by in-company information campaigns (posters and digital brochures):
- At Canals plant, a total of 13 mercury lamps (400 watts) were replaced by energy-saving lamps (105 watts).
- At Albariños warehouse, 26 HQI lamps (400 w) were replaced by energy-saving lamps (105 w).
- At Mercedes facility, 38 lamps were replaced by energy-saving bulbs (105 W), and unnecessary lightning revised.
- At Varillas plant, in 2014, the steam generating times (boiler) were reduced, cutting down electric consumption of boiler motors and pumps. One of the milk unloading docks was temporarily closed and this helped reduce pumping requirements in such area. The operation times of pressure washers used for truck washing were also shortened.
- At Rufino plant, all bulbs were replaced with energy/cost-saving options. Energy- saving lamps were installed instead. Plant schedules were adapted to organize work in non-rush hours, resulting in lesser costs. The ice bank was replaced for more energy-efficient equipment.
In 2014, motion sensor lightning systems were installed. During 2015, new facility adaptations will be introduced using energy-saving and sustainable systems.
Total electric energy savings:

In 2014, the launch of the “Efficient Energy Use" campaign at Mastellone Hermanos S.A. (processing plants), Mastellone San Luis (MSL) and CON-SER, resulted in a 6% reduction in annual energy consumption at those facilities.
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Emissions to atmosphere

Management of direct and indirect gas emissions from production operations (including GHG - greenhouse gas) is based on monitoring, control and adoption of minimizing measures.
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Environmental awareness

The development of sustainable actions and continuous improvement requires the involvement of the entire value chain and stakeholders. To this end, our company provides on-going staff training to promote environmental awareness.
EMISSIONS
TO ATMOSPHERE
Management of direct and indirect gas emissions from production operations (including GHG - greenhouse gas) is based on monitoring, control and adoption of minimizing measures and initiatives; always in strict compliance with environmental regulations at provincial, national and international levels.

Emissions to atmosphere are directly related with combustion of steam boilers, used intermittently to heat water for equipment rinsing and washing. At General Rodríguez factory as well as at Los Charas, Las Varillas, San Luis and Trenque Lauquen plants, natural gas is used for combustion, which results in better emissions in terms of PM10 and SO2. Particulate matter emissions are also related with milk powder manufacturing. This operation takes place at General Rodríguez factory where Mastellone Hermanos S.A. has a state-of-the-art plant with European technology and one of the largest facilities in South America.
During 2014, estimations of total carbon dioxide emissions (tn/CO2 eq.) generated from operations at all our plants revealed a 6% TN/CO2 drop vs. 2013.

Neighborhood noise pollution:

In order to avoid neighborhood noise pollution caused by our activities, we implemented monitoring and controls established by IRAM 4062 standard: 2001. The frequency of such controls depends on the characteristics and/or location of each industrial facility. Such monitoring, plus routine maintenance, contributes to the efficiency of the noise-treatment systems already installed in noise-generating equipment at General Rodriguez factory.
ENVIRONMENTAL
AWARENESS
The development of sustainable actions and continuous improvement requires the involvement of the entire value chain and stakeholders. To this end, our company provides on-going training activities to raise environmental awareness among its employees, informing them how to perform duties with the least possible impact on the environment.

A similar approach is used with suppliers, who are encouraged to adopt all actions that may help reduce environmental footprint.

Initiatives to raise environmental awareness:

Our company believes that an efficient way to raise environmental awareness and accountability is through specific campaigns. Some of the most relevant campaigns include:
• Post-consumer recycling: This campaign was supported by in-company communication brochures on recycling and information posters promoting staff commitment, participation and awareness on the importance of waste recycling. Waste was sorted and disposed of in specific recycling bins.
• Results: In 2014, post-consumer waste increased 23%, evidencing greater employee participation.