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ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017 2-Corporate

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ROQUETTE IN BRIEF “Offering the best of nature”

Roquette is a global leader in plant-based ingredients and a pioneer of new vegetal proteins. In collaboration with its customers and partners, the Group addresses current and future societal challenges by unlocking the potential of Nature to offer the best ingredients for Food, Nutrition and Health markets. Each of these ingredients responds to unique and essential needs, and they enable healthier lifestyles. Thanks to a constant drive for innovation and a long-term vision, the Group is committed to improving the well-being of millions of people all over the world while taking care of resources and territories. Roquette currently operates in over 100 countries, has a turnover of around 3.3 billion euros and employs 8,400 people worldwide.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE LET’S ALL OF US DARE TOGETHER!

Our strategy is inspired by Nature. Wherever we operate, in France, in the United States, China or India, Roquette unlocks the potential of Nature to better serve Food, Nutrition and Health markets. In 2017, we consolidated our positioning as a

EDITORIAL leading producer of plant-based ingredients, and we are seeing the benefits of the efforts we took over the past five years. The Group is delivering a sound industrial and commercial performance, as well as good financial returns. Our financial performance is not an end objective Edouard ROQUETTE as such. However, it enables the development of Chairman of the Board of Directors long-term strategies and consolidates our Group’s independence, led by our family shareholders. It is therefore a critical goal for us all. It gives us the freedom to innovate, invest, attract the best talents and break new ground, something that Roquette has been doing for 85 years. It also gives us the freedom to pursue our mission: offering the best of plant resources to ensure better diets, more specific nutrition and the improvement of women’s and men’s health. In 2017, we reinforced the Food-Nutrition-Health triple focus. We launched our major project to produce plant proteins in Portage la Prairie, Canada. Jean-Marc GILSON Chief Executive Officer of the Roquette Group

EXECUTIVE COMMITTEE

Jean-Marc GILSON Sophie ANCELIN Jeremy BURKS Armand CHEN Chief Executive Officer Human Resources Global Business Units Quality & Commercial

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE Corporate -5

There, we will develop pea proteins, a food “We” means the 8,400 dedicated people who make up ingredient coming from local agricultural our Group, beyond the tandem of us two, working resources. This promising innovation will allow us together in mutual trust to better serve the world. to provide our customers with ingredients that “We” means our customers around the world, the food contribute to healthier lifestyles. and health sector players, our day-to-day partners of Regarding health, we made two major investments the solutions we design and help implement every day. that set our roots in high-growth areas: the acquisition in Brazil of Itacel, a key player in the market “We” means our shareholders, the 250 members of of excipients of natural origin, as well as the the Roquette family, who guide and support us in order development of an innovation and regional technical to steer the business through this change. support center for nutrition in Singapore. In 2018, we are stepping further up. We execute During this same year, we also launched the Roquette our actions with professionalism and determination. Foundation for Health. This relevant initiative exempli- We are accelerating our growth investments, fies our long-term commitment. with a third of them devoted to the plant proteins It will support innovative or educational programs in project alone. the fields of food and nutrition, complementing the The investments are always geared toward innovation. initiatives that we undertake as part of our local We are accelerating the digitalization of the Group community relations. to serve our customers: they will interact, in real time, In 2017, we also projected ourselves into the future with our teams. We also want to make our organization with our “Imagine 2022” medium-term plan. more dynamic. To make it more agile. So that everyone This ambitious and impelling plan gives continuity contributes to an organization that drives more to the “Leadership 2018” plan launched five years ago, accountability, with the customer at the heart of and which our goals have been exceeded. the business. We are going to develop and support At a time when our Group must enhance its global our Leaders. setup—One Roquette—during the year we formalized Leaders who are committed, who provide meaning our position in order to spread it more widely: vision, and who are beacons of excellence on a daily basis. For mission, ambition, position, values. Roquette’s future, our greatest risk would be to not dare. We know where we are going. We know where we Let’s all of us dare together! want to invest.

Emmanuel DE GEUSER Nathalie JOANNES ThierryMARCEL Gianfranco PATRUCCO Finance Group General Counsel Research & Development Global Operations

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 6-Corporate OUR MARKETS AND OUR PRODUCTS

The Roquette Group is a leading global producer of plant-based ingredients and a pioneer of new vegetal proteins for Food, Nutrition and Health markets.

OUR CONVICTION IS OUR VISION Nature has the answer to provide people with the Food, Nutrition and Health they need according to their lifestyle choices, their age, where they live and what they do.

OUR CONTRIBUTION TO SOCIETY IS OUR MISSION Using plant-based resources, we collaborate with our customers and partners to imagine and offer ingredients to better feed and cure people. Each of our ingredients responds to unique and essential needs. They enable healthier lifestyles.

Here are a few examples of our products and their • Help achieve your daily recommended fiber needs benefits for your day-to-day life: thanks to the NUTRIOSE® soluble fiber without • Provide a source of energy specifically conceived to sugar, ensure the proper growth of your infants and young • Facilitate treatment intake, which, for example, children through the GLUCIDEX® enables the remission of rheumatoid arthritis through Premium maltodextrins, the PEARLITOL® BioPharma mannitol, • Provide plant proteins for your daily diet, which are • Improve intake of medicine that patients find hard adapted to special nutritional needs (maternity, sports, to swallow thanks to orodispersible tablets that seniors, vegetarians, clinical nutrition) through the melt in the mouth, and which are made with NUTRALYS® proteins, mannitol-starch, PEARLITOL® FLASH, • Offer solutions that are adapted to people with • Provide nutritionally balanced proteins that are diabetes thanks to our ingredients with a low adapted to fish and cow feeds through the VITEN® glycemic index such as SweetPearl® maltitol, wheat gluten or the GLUTALYS® corn proteins.

At Roquette, thanks to a constant quest for innovation and a long-term vision, we are committed to improving the well-being of millions of people around the world.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE A presence Turnover in more than 3.3 100 billion euros COUNTRIES 2017 was an exciting year. Even though we were faced with severe turmoil 8,400 20 in a complex environment, employees industrial sites we have obtained excellent results. 900 3 Thanks to our teams’ great Americas Americas dedication, we continue 5,000 9 to grow internationally Europe Europe and strengthen our 2,500 8 position as a leading Asia Asia global producer of plant-based ingredients. 300 40 Emmanuel de GEUSER employees patents Executive Vice President dedicated per year Finance to research

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 8-Corporate GOVERNANCE Roquette, a Group commited to sustainable growth

Didier de Menonville, Roquette is a family-owned Group The Board of Directors, which mainly Denis Delloye, with a global reach, led by the determines the strategic orientation, is Stéphane Baseden, 3rd generation of family directors. particularly keen on societal issues. Christophe Roquette, Without a long-term vision, The Group strives to promote Carole Lajous, its history would not have stood sustainable human practices and Edouard Roquette the test of time. (Chairman), draws its strength in respecting the Jean-François Since the creation of the company values of Authenticity, Excellence, Rambicur by Germain and Dominique Forward-looking and Well-being. (Vice Chairman), ROQUETTE in 1933, the shared These core values enable all entities Sonia Artinian, values remain strong and contribute of the Group, around the world, Marc Roquette, to the cohesion of the family and to reconcile financial performance Pierre-Emmanuel the teams. The commitment of the and environmental concerns with Lepers 250 family shareholders and the the development of the men and 8,400 employees contributes, every day, women who form the Group. to the development of a project They also allow the Group to assert that is marked by solid and its vision to provide as many people sustainable growth. as possible with specific answers To this effect, the governance changes to better feed and cure themselves regularly in order to adapt to the according to their lifestyle choices, circumstances and the ecosystem in their age and where they live. which it operates, thus preparing the Group’s future in a responsible manner.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE THE HIGHEST Corporate -9 STANDARDS OF GOVERNANCE

The Board of Directors, Thanks to the particularly the members establishment of of the Ethics and better governance Sustainable standards and the 10 Development strength of its business members of the Board Committee, eagerly model, Roquette has of Directors supported the creation the capacity to roll out of the Roquette an ambitious strategy. Foundation for Health This will sustainably in late 2017. strengthen its position as 5 a global leader and help Family This initiative reinforces distinguish the Group Directors the strategy and gives as a key plant-based guidance to the teams. including the Chairman ingredients player, with + It illustrates the Group’s an organization in close and its shareholders’ connection with Food, 5 capacity to invest Nutrition and Health Independent responsibly, by markets. Directors supporting projects promoting food awareness and health benefits. 2018 is a year in which the Board of Directors will be renewed. In the course of 2017, the Appointments and Compensation 4 COMMITTEES Committee worked on implementing a balanced Board of Directors. It APPOINTMENTS AND selected people with COMPENSATION COMMITTEE complementary skills and expertise, while ensuring diversity within STRATEGY COMMITTEE the Board of Directors.

AUDIT COMMITTEE

ETHICS AND SUSTAINABLE DEVELOPMENT COMMITTEE

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 10-Corporate OUR HIGHLIGHTS

Understanding consumer needs is the consistent focus of the Roquette Group. Through its actions and investments, the Group meets the needs of its stakeholders, stimulates innovation and strengthens its global performance.

The Group is building the largest Roquette invests in its Vic-sur-Aisne production site for pea proteins site (France) and boosts its global in Portage la Prairie (Canada) leadership in the pea proteins market

In January 2017, Roquette announced In June 2017, the Roquette Group invested the construction of the largest production 40 million euros in its Vic-sur-Aisne site in order site for pea proteins in Portage la Prairie, to increase its production capacity. Manitoba (Canada). The groundbreaking was This investment accelerates the Group’s activities celebrated in September 2017. This major linked to pea proteins in order to satisfy the sharp rise site will enable the Roquette Group to better in global demand, driven by consumers’ desire to take meet the growing demand for plant proteins care of their health and their latter’s for Food, Nutrition and Health concerns in terms of Sustainable markets in North America and Development. the rest of the world.

The Roquette site in Pantnagar (India) celebrates 10 years

In February 2017, during an event with its customers, the Roquette Group celebrated the 10-year anniversary of its production site in Pantnagar. On this occasion, the Group asserted its commitment to constantly strive to better meet its customers’ expectations. The energy, passion and dedication of its teams turned this into a memorable event.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE A conversation with Anne Lambin Head of the Roquette Foundation for Health

Roquette acquires Itacel in Brazil IN NOVEMBER As such, it can provide and asserts its ambition to become a 2017, THE support to various types leading player in the pharmaceutical ROQUETTE of projects such as: excipients market • Programs to raise food GROUP awareness, LAUNCHED ITS • Studies related to In September 2017, Roquette finalized the ROQUETTE the impact of food acquisition of Itacel, a key player for the on diseases, pharmaceutical excipients markets of Brazil FOUNDATION • Operational and and Latin America. This operation reinforces FOR HEALTH sustainable projects Roquette’s position as a major supplier of the with health pharmaceutical industry and a What are the benefits… world leader in pharmaceutical motivations behind it? excipient solutions of natural Increasingly committed How will you select the origin. to sustainable human and projects to support? financial development, To approve projects, the we wanted to assign a Roquette Foundation new dimension to our for Health relies on a commitments. committee presided by Complementing the Edouard ROQUETTE, Group’s Sustainable which is comprised Development approach, of employees, our Foundation is shareholders and experts particularly aligned with from the health and one of the Acting medical sectors. It is commitments, which is to this committee that "Develop our activities defines the guidelines with the local and orientations of the communities." Foundation in order The Group opened a new regional to determine the choice head office for the Asia-Pacific of projects to support. region and an innovation center in What is the mission of Today, we believe that Singapore this Foundation? Under the aegis of the businesses must Fondation de France, fulfill a social mission, In October 2017, the Group opened a new our Foundation’s mission in addition to being regional head office for the Asia-Pacific is to support innovative profitable, in order region and an innovation center in Singapore. or educational programs to ensure long-term These new facilities are dedicated to nutrition in the fields of food and prosperity. and health in order to better address the nutrition. I would like the eating habits and the health issues of Foundation to become consumers in Asia. They represent a major a genuine source of step in Roquette’s ambition to become a pride for all employees global leader of ingredients and to inspire all the for Food, Nutrition and activities of the Roquette Health. Group.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 12-Corporate OUR COMMITMENTS IN LINE WITH THE SUSTAINABLE DEVELOPMENT GOALS OF THE UN

no zero good health quality poverty hunger and well-being education

Put health, safety and well-being at the heart of our concerns: by continuing the industry, responsible innovation and implementation of a world-class HSE consumption infrastructure (Health, Safety, Environment) management and production system and developing a culture in which people safety is a core value. Develop our activities with the local communities (the foundation, supporting Understand customers’ local communities): by partnering with our Source sustainably and needs and anticipate local communities and contributing to responsibly: by consumers’ expectations: their development through sustainable encouraging local supply by developing pharma, relationship. and optimizing means nutrition, food and of transportation to industrial innovative combine economic profitability and low solutions that help reduced gender improve our consumers’ inequalities equality environmental footprint. health and well-being. Improve continuously Develop a Sustainable our raw material Development journey quality: by clearly inspired by customers’ specifying our needs, expectations: strictly selecting our by offering them Build on our diversity: by valuing our suppliers and reinforcing environmentally friendly, differences and promoting the sharing of quality control chains innovative, sustainable best practices in a multicultural network. from fields to and competitive solutions. biorefineries. Strengthen sustainability Strengthen relationship in our innovation with our raw materials processes: suppliers: by including sustainable by building partnerships development criteria as with breeders and key element in our farmers to select and use innovation projects. more suitable agricultural resources.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE Like many other leading companies, we are aware Corporate -13 of the societal stakes, and we strive to consistently integrate the Sustainable Development Goals of the UN into our strategy and our Sustainable Development commitments.

clean water decent work sustainable and sanitation and economic cities and growth communities

Preserve water: Empower by optimizing our employees: processes to by promoting minimize dialogue, fostering consumptions and engagement and installing efficient developing skills. treatment technologies.

climate affordable and life below life and action clean energy water land

Optimize our energy Further reduce other environmental consumption: impacts: by implementing the most by installing relevant solutions based on local energy-efficient specificities. solutions and using relevant renewable energies.

peace, justice partnerships and strong for the goals institutions

Promote our partnerships: to achieve our commitments in line with the Global Compact of the United Nations.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 14-Corporate OUR STAKEHOLDERS

COMMERCIAL SOCIAL SPHERE SPHERE Customers Employees Suppliers Future employees Contractors Social partners Distributors and Agents ... Industrial Partners ...

PUBLIC & SOCIETAL SPHERE FINANCIAL Public authorities SPHERE Local communities Professional organizations Shareholders Scientific Financial institutions and academic institutions Banks The media ... NGOs Consumers and Citizens ... OUR VALUES AUTHENTICITY EXCELLENCE FORWARD-LOOKING WELL-BEING

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE Roquette created an internal audit function in order to address the expectations of its THE GLOBAL stakeholders, particularly shareholders and customers. This function was certified by the IFACI (French Institute of Auditing and Internal Control) COMPACT in October 2017, who confirms its professionalism. Among its activities, the Internal Audit Function devotes its utmost efforts to combat fraud. RESPECTING THE 10 PRINCIPLES These efforts involve raising awareness through OF THE GLOBAL COMPACT the Code of Conduct and holding special training sessions at the Group’s sites. As such, in 2017, The UN Global Compact brings together over 500 people benefited from that. businesses, organizations, UN agencies, labor The efforts were supported by the setup of an stakeholders and civil society around ten universally alert hotline: [email protected], which is open recognized principles designed to build companies to all stakeholders. that are more stable and more inclusive. Roquette, through the related efforts, meets the demands of the Sapin II Act. Roquette has been a member of the UN Global Compact since 2009. Every year, our Sustainable Pierre-Arnaud Cresson Development and Activity Report gives us the Internal Audit Director opportunity to describe our actions in support of these 10 principles.

P.12 to P.14 P.34 to P.37 P.26 to P.29 and P.42 to P.46 P.15 HUMAN LABOR ENVIRON- ANTI- RIGHTS MENT CORRUPTION

Businesses Businesses Businesses Businesses should: should: should: should: 1 3 7 10 Support and respect Uphold the freedom Support a Work against the protection of of association and the precautionary corruption in all its internationally effective recognition approach to forms, including proclaimed human of the right to environmental extortion and bribery. rights, collective bargaining, challenges, 2 4 8 Make sure that they Contribute to the are not complicit in elimination of all forms Undertake initiatives human rights abuses. of forced and to promote greater compulsory labor, environmental responsibility, 5 Contribute to the 9 effective abolition of Encourage the child labour, development and diffusion of environ- 6 mentally friendly Contribute to the technologies. elimination of discrimination in respect of employment and occupation.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE INNOVATING SUSTAINABLY 1 UNDERSTAND CUSTOMERS’ NEEDS AND ANTICIPATE CONSUMERS’ EXPECTATIONS

By developing pharma, nutrition, food and industrial innovative solutions that help improve our consumers’ health and well-being. 2 DEVELOP A SUSTAINABLE DEVELOPMENT JOURNEY INSPIRED BY OUR CUSTOMERS’ EXPECTATIONS

By offering them environmentally friendly, innovative, sustainable and competitive solutions. 3 STRENGTHEN SUSTAINABILITY IN OUR INNOVATION PROCESSES

By including sustainable development criteria as a key element in our innovation projects.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 18-Innovating INNOVATING IN 2025 The family heritage and long-term vision that drive the Roquette we are committed Group lead the company to engage in constant exploration and to ensuring that innovation. This drive is the key to meeting customers’ expectations and anticipating their needs in a consistent manner. When offering the best of plant resources, we work with all our partners to imagine 70% and offer ingredients that meet the unique and essential needs of of our projects the various consumer lifestyles. meet the criteria of “sustainable” chemistry and that 80% PRIORITY TO INNOVATION! of the new Innovation should be This new center counts on a wealth solutions offered increasingly agile and in tune of scientific and expert knowledge to our customers with the fast-changing world. in the fields of analytical from the same That is why the Research and technologies, pharmaceuticals projects meet the Development (R&D) teams of and nutrition. Sustainable the Group work on several fields. Development Several initiatives have thus been • Open innovation: Goals of the UN. launched over the past few years: Although internal expertise is essential, it remains insufficient in the current world. • Research centers all Changes in innovation approach around the world: are vital. We are aware of this In 2017, the Roquette fact and are working on the Group inaugurated a internationalization of our R&D new innovation center teams, plus open innovation for pharma, food and initiatives at the research centers in nutrition sectors, which Singapore, France and the United is based in Singapore. States. Fostering partnerships This reflects the with academic or institutional ambition of the excellence teams, participating Roquette Group for in these knowledge ecosystems the Asia-Pacific region guarantees the quality of our and the commitment innovations and speeds up the to work closer to Asian development of new solutions. consumers in order Speeding up innovation will be to gain a better one of the key priorities of the understanding of their Group in 2018. The action program needs and the called "SpeedUp Innovation," emergence of new initiated with our teams in late trends. 2017, marks the desire to position customers and consumers at the heart of innovations.

Innovation center in Singapore

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE Innovating -19 ZOOM THE KEY NUTRITIONAL NEEDS FOR EACH STAGE OF OUR LIVES

Objectives of this webinar: • Identify the nutritional needs at the various stages of the life cycle (maternity, early childhood, weight management, seniors), THE ROQUETTE GROUP, • Raise awareness on the ingredients that address LIVE! specific nutritional needs, market trends and Consistently keen on training and • Nutritional solutions and key consumer expectations interacting with our customers and ingredients to meet the needs (natural quality, safety, other stakeholders, we develop of each stage of life, quality and practicality), webinars, interactive seminars • Ingenious snacks, • Offer concepts of open to everyone. These online • Greens in our meals. innovative food products events allow us to share our The participants were able to to address the needs of expertise and solutions. Each of address many questions to the each type of population. them was followed live by many Group’s experts. The audience people, with participants from consisted of researchers, food The seminar was a roaring different continents. Three manufacturers, marketing success. seminars based on topics specialists, nutritionists, academics, addressing consumer expectations representatives of government were held in 2017 and they are still agencies, start-ups, etc. available online:

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 20-Innovating

CREATILICIOUSTM FOOD TRUCK AN ORIGINAL CONCEPT

The CREATILICIOUS™ Food truck was presented for the first time at the Food Ingredients Europe (FIE) fair, in November 2017, in Frankfurt. The food truck concept is an original way of presenting the benefits of the Group’s ingredients through delicious and original recipes. Visitors were invited to taste a menu consisting of new recipes specially created by our experts in food applications.

ENHANCING ADDRESSING SENSORY EXPERIENCES SPECIFIC NEEDS

The “So Wow” chewing gum: owing to its soft A chocolate-based snack with a high protein chewy texture, this sugarless chewing gum made with content: made with NUTRALYS® pea protein and SweetPearl® maltitol and LYCASIN® maltitol SweetPearl® maltitol, this muffin enriched with syrup provides a burst of flavor and an instant cooling proteins presents soft texture, without any added effect. sugars, and a lower glycemic response. ENHANCING PRACTICALITY HELPING PEOPLE TO ADOPT A HEALTHY LIFESTYLE Pasta with a high protein content: Vegan traditional pasta. Enriched with proteins, they are made with A plant-derived drink made of pea proteins: this NUTRALYS® pea protein. This concept allows us plant-based drink can be enjoyed anytime, with to offer an alternative to meat for daily diet. cereals or in a smoothie. A source of plant proteins, with an exceptional taste and texture, this drink is naturally lactose-free and does not contain dairy or soy products—thanks to NUTRALYS® plant-based protein.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE NUTRALYS® ZOOM PEA PROTEIN FOR PATIENT CARE

Patient malnutrition is a very common problem, which affects in particular their PEA PROTEIN, A HEALTHY recovery. Based on this fact, the teaching hospital of Aalborg, AND SUSTAINABLE the largest hospital in northern Denmark counting 800 beds ALTERNATIVE and 3,000 meals per day, recently developed a special In 2050, we will be nine healthy ingredient in their nutritional program called "KULINARIUM." billion people on Earth. daily diet. The ability to feed the GMO-free, yellow pea Research has demonstrated population while preserving cultivation presents a number that regular snacks generally food security, each person’s of benefits. It fosters do not provide enough energy health and our planet’s biodiversity, limits irrigation or proteins for patients, as they resources is a major challenge. and does not require only cover a third of the daily Pea proteins can help address fertilizers. Yellow pea is required intake between meals. this challenge. After several unsatisfactory ideally cultivated in a crop Drawn from yellow peas, pea rotation system as it naturally tests, the hospital tried yellow protein is an excellent source enriches the soil with pea protein in its snacks, of vegetable proteins for nitrogen for the benefit of particularly NUTRALYS® yellow pea protein from Roquette; all, on a daily basis. It offers the next crops. The a grade that was specifically multiple nutritional and environmental footprint of functional properties. Not pea cultivation is thus developed for clinical included in the list of major particularly low. nutrition. allergens (EU), with a gluten- Pea protein presents Thanks to the new menu and lactose-free profile and many advantages to all based on NUTRALYS® pea offering excellent digestibility, stakeholders of the protein, patients of the pea protein is complementary production line, from farmers “KULINARIUM” program to animal proteins and an to consumers. noted an increase in the daily alternative to soy, as well as a intake in energy (+20%) significant source of essential and proteins (+78%). amino acids. We have thus developed NUTRALYS® yellow pea protein, which offers clinically proven benefits for muscle mass development, satiety and calorie intake. Anyone can include this

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE THE ROQUETTE GROUP CONSOLIDATES ITS POSITION IN PHARMACEUTICALS THE END OF THE MARKETS “DIFFICULT “Roquette has great for fast growth, a key factor TO SWALLOW development ambitions given the current context of for Health markets. Our these expanding markets. TABLETS” ambitions are achieved through organic growth as The second step was taken

ZOOM On a day-to-day basis, the well as through acquisitions,” with the inauguration of Roquette Group applies its Paul Smaltz, Head of GBU new facilities in Singapore, know-how and expertise Pharma (Global Business including the BioPharma to develop innovative Unit) of Roquette. laboratory, which will excipients, which help to More than ever, we are active become the Group’s global produce orodispersible in the pharmaceuticals BioPharma center of tablets in particular. By and nutraceuticals markets. excellence. More than ever, we facilitating medicine intake are a partner to our customers for children or the elderly, The acquisition of Itacel in terms of development and these new forms are in Brazil was a first step. commercial opportunities preferable to tablets to be Firstly, this operation on a global scale. swallowed or chewed. They enables Roquette to expand dissolve almost instantly, its excipients offering, without water, without a with specific regard to bad taste and they present the oral dosage forms a pleasant feeling. in pharmaceutical and nutraceutical applications. It The Roquette also provides the opportunity Group manufactures excipients such as PEARLITOL®mannitol. This excipient is present in the first tablet,printed through 3D technology, designed for reducing the intensity of epilepsy episodes. This type of personalized medicine will certainly feature among future innovations in the medical realm.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE Innovating -23

SUSTAINABLE SOLUTIONS FOR INDUSTRIES: CHALLENGE ACCOMPLISHED!

The products that we develop Greater resistance to high THE PAPER INDUSTRY for industrial markets address temperature also serves in the Over the past two decades, the consumer demands in terms sterilization of a container or paper sector has been working on of healthy, renewable and content and in filling bottles with forest and recycling management, recyclable solutions. hot liquid, thus facilitating hygiene and has been seeking solutions to or product preservation. limit the use of products derived They often serve as alternatives from oil, such as synthetic latex. to products derived from BIO-INDUSTRY fossil-based chemistry. Bio-industry is a thriving sector. The ranges developed by our teams Demand for naturally derived in the application laboratories Manufacturing activities using solutions that respect people address these aims. plant-based raw materials allow and the environment, such as to integrate the products within alternatives to chemical products, Our products and innovations the natural carbon cycle, thus is on the rise. Bio-industry also associated with our technical limiting greenhouse gas emissions. includes fermentation industries, expertise, particularly in India, Our products can present both which enable the development of a enable our customers to improve technological and functional biochemistry of living organisms. their processes, while contributing innovation. The products developed by to preserving the environment. PERFORMANCE the Roquette Group enable, MATERIALS for example, cultivation of With the introduction of micro-organisms for nutritional high-performance starches for The combination of our and health applications. instance, consumption of starch POLYSORB® Isosorbide with has declined, while the product other monomers allows us to offer quality and bonding properties new plastic polymers with better have increased, and the operation functionalities than existing of machines under various materials. As such, better UV or conditions has improved. scratch resistance increases the life of plastic materials.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE SOURCING SUSTAINABLY 1 SOURCE SUSTAINABLY

By encouraging local supply and optimizing means of transportation to combine economic profitability and low environmental footprint.

2 IMPROVE CONTINUOUSLY OUR RAW MATERIALS QUALITY

By clearly specifying our needs, strictly selecting our suppliers and reinforcing quality control chain from fields to biorefineries. 3 STRENGTHEN RELATIONSHIP WITH OUR RAW MATERIALS SUPPLIERS

By building partnerships with breeders and farmers to select and use more suitable agricultural resources.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 26-Sourcing SOURCING

We optimize all the components of our raw materials. They are derived from agriculture and as such renewable annually.

IN 2025 We engage in trust-based relationships with our we are committed customers, partners and shareholders. One of the four to ensuring that pillars of our Sustainable Development approach concerns our sourcing mode. It is due to this reason that we are committed to ensuring sustainable and 20% responsible sourcing with our partners and suppliers. of our supplies be certified or rated MASSIMILIANO BENSO Head of Global Purchasing as “sustainable or responsible." A CODE OF CONDUCT FOR THE SUSTAINABLE SOURCING BRANCHES

Within the framework of our For all of us, the document approach, we drafted a code of complements the various conduct for our suppliers based regulations, standards and laws on the principles of the United in force in the different countries. Nations Global Compact and the Suppliers also commit to respect conventions of the International the regulations, standards and laws Labor Organization (ILO), as well in the countries in which they as the Roquette Group’s Ethics and operate. Each supplier of the Responsibility Charter and Code Group is required to adhere to and of Conduct. This code enables us to communicate this code of conduct establish a long-term relationship to all of their employees, and to with our partners, while creating ensure that the principles are sustainable growth. learned and respected.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE Sourcing -27

Model of the future Roquette warehouse in Port de Santes (France)

MINIMIZE IMPACT ON THE ENVIRONMENT LINKED TO TRANSPORTATION INNOVATING WITH In 2017, across the entire Group, deliveries. To this end, we we continued to optimize our encourage rail or multimodal MULTIMODAL transportation means in order transportation as much as possible. MEANS ZOOM to combine the ambitions of As such, in Europe, the Group lowering our environmental renewed its partnership with In late 2017, the Group footprint and improving our Fret SNCF, who holds all the officially signed leases for financial performance. rail transport contracts of the a set of storage warehouses European sites. This partnership with an overall surface area To this end, various initiatives enables us to optimize and of 90,000 m², located in were established; potentially to increase the volume Port de Santes, about thirty kilometers from the Lestrem SUSTAINABLE of the goods we transport by rail. site (France). The new building AND RESPONSIBLE AN OPTIMIZED spanning 42,000 m² and ALTERNATIVES LOGISTICS PRESENCE whose construction will begin Whenever possible, we arranged in 2018 will add to the current We reflected on how to organize for more sustainable delivery by 48,000 m² and will be our logistics chain in a lowering carbon footprint, operational in September sustainable and responsible particularly by setting up recycling 2019. manner in order to better align it chains. with our growth ambitions, while It will significantly increase To this effect, in Japan, over lowering the environmental our storage capacity, while 8,400 plastic palettes used for the impacts linked to transportation. optimizing logistics flows. deliveries of a warehouse were The proximity to a future For example, in the American recovered and recycled within multimodal platform will allow continent, our actions helped the framework of the “Green the transfer of palettes from leverage our warehouses in the Program.” the Lestrem site to the USA after the acquisition of a new warehouses, as well as their MORE SUITABLE subsidiary in Brazil. By improving shipment to customers TRANSPORTATION our logistics flows, we met through river-based, rail the expectations of our customers MEANS and road networks. in terms of safety, quality and This solution will reduce the We consistently seek transport performance. flow of road transportation in solutions with a low environmental the neighboring villages and impact, both in terms of will limit CO emissions. sourcing cereals and inter-site 2 transportation or customer

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 28-Sourcing

PEA, SUSTAINABLE COLLABORATION FOR A RESPONSIBLE SECTOR

Changes in lifestyles and dietary Working closely with our usual We are proud to be habits are leading to a progressive local pea suppliers and the supported and to be reduction in animal proteins and a Hauts-de-France cooperatives, we working within rising interest for proteins derived established a shared agricultural a framework from plant-based raw materials. journey and launched it for the of continuous 2017 season. The Roquette Group, a pioneer environmental of new vegetal proteins, has We defined the best agricultural progress in anticipated this market evolution practices, especially to promote partnership with the by developing a protein derived reasonable use of plant protection Roquette Group. from yellow peas, which is popular products in compliance with the for its nutritional qualities, color various regulations, but also Feedback and neutral taste. with the aim of reducing the from a farmer environmental impact. In the 2000s, we began processing yellow peas at our site in We also established a traceability Vic-sur-Aisne (France). To procedure from upstream anticipate the rising demand in agriculture to downstream the market, we adjusted our production. sourcing strategy in order to We initiated progress measures. comply with all the country For example, we are currently using regulations, with particular regard a satellite tracking experiment to sanitary aspects. French peas that using GIS (Geographic we used to buy was a standard pea. Information System) technology We worked on establishing more to track identified plots. We expect stringent specifications to obtain a this to help optimize crop pea with a specific quality to meet cultivation. the needs of Food, Nutrition markets. Responsible agronomic and Health specifications and adoption of modern technologies form the basis of the new pea production activity.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE ZOOM improve CO mechanization sothatwe and fertilizerstoreduce master theuseofpesticides agriculture inorder tobetter like tosteertowards precision ourpartner,With wewould that respect the environment. adopting image ofourproduction by willingness toimprove the This demonstratesthemutual yields. monitor thecrops andthe deficiencies in nitrogen and satellite observationstodetect System) technology, allowing GIS (Geographic Information We tracked30plotsusingthe previous season.Result: in earlydetectionduringthe to monitorcrops andengage We launchedanewapproach AGRICULTURE FOR PRECISION SATELLITE IMAGES agricultural practices agricultural practices 2 emissions.

balances inproduction. profound of modification Policy oftheEU entaileda of theCommon Agricultural by determined thelastreform The endofthestarch regime sectors. andsomenutrition industrial pharmaceuticals, animal the as well asfor andsoups,instant noodles as such applications dietary , properties for particularly solutions withunique the RoquetteGroup offers Thanks topotatostarch, in Normandy. in theHauts-de-France and who produce starch potatoes counts over 800members Vecquemont which (CFV), Coopérative Féculière de supplier,our historical the contract with an exclusive In mid-2017, we signed and consumers. expectations ofourcustomers to betteraddress the and withthisreform of complying capable production activity objective: tocreate a suppliers. This ledtoadual with our in collaboration plant in Vecquemont (France) to thought process on how We therefore a launched TERM PERSPECTIVE FOSTERING ALONG- POTATOES, secure sourcing atour to sustainitinorder ACTIVITY AND SUSTAINABLEDEVELOPMENT REPORT 2017/ROQUETTE

tons. This requires asearch ofuptoone million a delivery three years, represents which oftheplantwithin capacity ambitious, the istooptimize The goal, ishighly which chain. thevalue ofdeveloping terms aspectin acrucial farmers, withthe partnership of10years,period agenuine helpestablish,will over a modern agricultural practices. agricultural modern aswell asmore varieties new monitored beusedtotest will fields thatare jointly cultivation. Experimental of thestarch potato enhancetheperformance will farmers thenew for support and practices agricultural The improvement of agronomists. Group along withCFV inspectors from theRoquette involve will crop which measures,place support for We asignificant reserved obtain additional hectares. inorder farmers to new for This agreement withtheCFV Sourcing

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ACTING SUSTAINABLY 1 PUT HEALTH, SAFETY AND WELL-BEING AT THE HEART OF OUR CONCERNS

By continuing the implementation of a world-class HSE (Health, Safety, Environment) management system and developing a culture in which people safety is a core value. 2 EMPOWER EMPLOYEES

By promoting dialogue, fostering engagement and developing skills. 3 BUILD ON OUR DIVERSITY

By valuing our differences and promoting the sharing of best practices in a multicultural network. 4 DEVELOP OUR ACTIVITIES WITH LOCAL COMMUNITIES

By partnering with our local communities and contributing to their development through sustainable relationships.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 32 -Acting ACTING

IN 2025 we are committed SAFETY IS ONE to achieving a OF OUR PRIORITIES Frequency Rate 1(*) of 0.5 SAFETY: 2017 RESULTS and a Frequency AIMING Rate 2(**) of In 2017, our performance FOR EXCELLENCE was exceptional. The Group, yet again, achieved a significant improvement in our results for 1.5 Safety is one of our priorities, and the year in this respect. The number we continue to demonstrate on a of employees of the Group who daily basis that health and safety had lost working time accidents Every year, are crucial to the Group’s we implement our declined significantly: 18 compared sustainability and to our ability to 32 in 2016. This notable decline commitment to achieve its goals. may be due to a number of factors, to local populations Each member of the community but safety culture training greatly and communities contributes to the zero accidents contributed to the outcome. by supporting goal! The training helps increase the a minimum of No battle is ever entirely impact on the field through won. We must continue discussions and interactions. our efforts to achieve Despite the excellent results, the 20 excellence. Group acknowledges that there is projects or activities. still more to be done in order to JEAN-LUC GRIBOT achieve the zero goal. HSE Manager (*) number of accidents with Each employee plays an essential work stoppage per million role in terms of their own safety and hours worked that of their colleagues. Together, (**) number of accidents each person must strive to improve notified per million hours worked and go beyond every day.

Poster campaign on safety

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE best companies in the world in terms ofhealthandsafety. interms best companies intheworld ofthe Roquettetothelevel toraising contribute and will (Health, &Environment) plan, strategic Safety contribute ofthesemeasures,All intheGroup’s included HSE 3,300 employees by had beentrained theendof2017. in2016, thecoursewaslaunched Since over thatofothers. ensuring ensureactively theirown safety, of butalsobecapable that ofindependence: thismeansthateach person must one shouldstepoutoftheinterdependence sphere andinto We culture. would liketoenhancethesafety To thisend, of day-to-day safety. aimstoempower eachpersoninterms The training continue upspeedin2017andwill in2018.picked leadership training,The safety wassetupin2016, which ON AGLOBALSCALE ESTABLISHED SAFETY LEADERSHIP Safety leadership session inLestrem (France) per millionhoursworked * in 2017 3.45 Frequency rate 2 = number of accidents notified FR2 *

in 2016 5.06

ACTIVITY AND SUSTAINABLEDEVELOPMENT REPORT 2017/ROQUETTE ASIA: AWARDS EXTERNAL commitment tosafety. management andemployees’ awards reward effective safety and Lestrem (France).These Panavezys (Lithuania),Beinheim Benifaió (Spain),Cassano(Italy), EUROPE: of workplacesafetyandhealth. for goodresults interms The award rewards companies Council forSafetyinIndia. plant delivered bytheNational Puraskara Award fortheGokak CASSANO: No accident: 1 millionhours GOKAK ANDVIRAMGAM,KEOKUK: 2 millionhours LESTREM ANDBEINHEIM: PANTNAGAR: LIANYUNGANG: No lost working time accident. BRAVOS WEREAWARDED: THE IN-HOUSESAFETY FOR THEFIRSTTIME, IN 2017, Safety Bravoin Lianyungang (China) plants: Vic-sur-Aisne (France), by Starch Europe to6Roquette

The Prashama Suraksha The PrashamaSuraksha

Safety Awards awarded 1 millionhours

3 million hours 3 millionhours 5 million hours 5 millionhours

Acting

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ZOOM 34 -Acting

WOMEN AND MEN AT THE HEART OF OUR STRATEGY

Providing a positive and attractive professional environment, in which every person can learn, grow, contribute to the overall performance of our company and be recognized as such, is a priority for a family-owned group like ours. The everyday Roquette spirit in ten words:

ACCOUNTABLE ACT PERFORMANCE LEADERSHIP POSITIVE DEVELOP RECOGNIZE TRUST ENTREPRENEURIAL COMMITMENT

WORKDAY, SUPPORTING OUR EMPLOYEES ON A DAILY BASIS

The June 2017 launch of Workday @Roquette, our new Human Resources system of reference for the Group, is in perfect alignment with our strategy. Indeed, this digital solution, which harmonizes practices at Group level, serves as a facilitator for employees, managers and HR teams.

How can Workday help me? I really like the collaborative Workday has changed Simply put, a new position. approach of Workday. how we manage human Thanks to this platform, For example, it’s employees resources, by making I could communicate about who suggest their goals. the use of databases my career aspirations, As a manager based in the more systematic and consult all the openings United States, I can then by standardizing our published within the Group, review them, discuss about processes. At my site apply and change function. them and adjust them if in Lianyungang (China), I became the first employee necessary. The same goes which employs over 600 to benefit from internal for the “career” section, employees, we no longer mobility following an which helps us develop need to manually update application through our most precious resources employee profiles. That’s Workday! - our employees. It’s a great time saved to allow us demonstration of how the to concentrate on our digital environment can help strategic missions! us unlock all our potential.

ALBIN LANNOY PAUL SMALTZ JENNY SONG Risk Management Coordinator Head of GBU Pharma Compensation and Benefits Supervisor

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE ROQUETTE TALKS, Acting -35 INNOVATIVE COMMUNICATION

Convinced that the awareness and commitment of each of the employees are vital for success, the Roquette Group decided to launch a series of innovative initiatives in order to establish a direct link between the Executive Team and the entire company. “Roquette Talks” is one of them. The first edition of this online Alternating meetings in Lestrem (France) global meeting took place in late 2017. It brought together over 1,300 people for presentations and IMPARTING KNOWLEDGE a live Q&A session. TO THE YOUNGER During the session, Jean-Marc GILSON, Chief Executive Officer, GENERATIONS along with two other members of the Executive Office, discussed Knowing that today’s with many creative ideas the new position of the Group youth are the employees of for various projects of the (vision, mission, ambition, values). tomorrow, the Group regards Group: a pharmaceutical education as one of its marketing campaign, The event, which will be held fundamental pillars. In 2017, improvement of scheduling once or twice a year, is the starting we hosted many students and manufacturing control point of a global initiative aimed at various sites around the measures. This experience at taking advantage of Executive world. proved to be a constructive Team members’ business trips to exchange, which boosts our During the year, the Group the various sites of the Group in relationships with local and joined the Italian Ministry order to engage them in direct regional universities, while of Education’s “Work-Study talks with the teams. building a pool of future Program” that allows high employees. school students to complete a 15-day internship at a We will host over company. The internship 70 “work-study” trainees aims at helping them in their between 2017 and academic orientation. For 2018. After production, this first edition, we hosted maintenance, engineering 35 high school students and catering, the work-study across all our departments: contracts opened up to sales, finance, operations, all careers within the R&D, etc., at the site of Group. Cassano (Italy). Concurrently, “Annual In the summer of 2017, Work-Study Meetings” 15 intern students worked are held at the Lestrem site, on interactive projects, at which serve to foster sharing, the sites of Keokuk and listening and dialogue while Geneva, in the United States. encouraging the commitment Thanks to their experiences, and development of the skills the interns presented us of future talents.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 36-Acting

CULTURAL DIVERSITY, AN ASSET FOR THE ROQUETTE GROUP FOR EQUAL OPPORTUNITIES

In the course of 2016, the Group signed a partnership agreement with the NQT (French acronym for “Our Neighborhoods have Talent") association, thus marking its commitment in terms of integrating young graduates experiencing difficulties when searching for a job. The first actions of NQT in 2005 were rooted Award of the GEIQ diversity CSR label in Lestrem (France) in the underprivileged neighborhoods of La Plaine Saint-Denis. This measure is “As a source of exchange, In France, the GEIQ Employment progressively growing within innovation and creativity, and Disability (Grouping of the Group and now counts cultural diversity is as necessary Employers working towards on 15 sponsors. for humankind as biodiversity is for Integration and Qualification), nature. Article 1 of the UNESCO recognized the Group’s efforts in "We are particularly keen Universal Declaration on Cultural terms of its societal responsibility on the values of solidarity. Diversity (Paris, November 2, by presenting it with the GEIQ There are lots of students 2001).” diversity CSR Label in September with real potential. 2017, an award that promotes our In full alignment with this article, Sometimes, all it takes differences and experience sharing the Group implements actions is a little helping hand. in the company. across the world in order to develop It’s worth relying on our an environment in which all In 2017, we sent two newsletters broad diversity, sharing cultures can thrive. to the employees at the French experiences within a sites. The first one dealt with a multicultural network to In the United States, a “Diversity successful integration action at the benefit from expert advice for all employees” training module site in Lestrem and the second, for one’s CV, and to discuss was implemented. Launched in with an invisible disability. The about the initial observations 2017, this training is compulsory profiles were edited with the help with the mentees." for all employees in the United of the SACHA group (Knowing States. The goal is to raise How to Support Each Disability) PIERRE-LOUIS awareness, to understand each and complemented with a seminar BESCOND person’s diversity in order to Head of Manufacturing open to all Lestrem employees. combat discrimination in the Performance Europe workplace and to prove that differences are a source of wealth that make us stronger. ZOOM

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE Acting -37 TAKING CARE OF OUR EMPLOYEES Our success hinges on our 8,400 employees; their health and well-being are our priority.

In Italy, preventive medical gym memberships or sporting check-ups were offered free of equipment, travel, etc. charge. 40 female employees In Switzerland and in Lithuania, took part in a full gynecological team building activities were screening, while 120 male arranged in order to reinforce bonds ZOOM employees above the age of 45 and collaboration between teams. were offered to undertake medical tests to detect prostate cancer. In France and in Switzerland, THE QUALITY the first agreements were signed to In India, a number of actions were test telecommuting arrangements OF LIFE IN THE undertaken involving our three designed to promote work-life sites: blood donation, health camps, WORKPLACE WEEK balance. IN LESTREM sanitary installations and drinking water, etc. In Spain, for 12 years now, an “International Volunteer Day” On the occasion of the The Roquette Group in Singapore is organized based on a social Quality of Life in the set up the “Flexible Benefit” action. Each year, it serves a great Workplace Week, the program. This digitalized program opportunity for creating cohesion Occupational Health based on well-being provides around a common solidarity goal. Department of Lestrem each employee with the possibility This year, 40 employees and their installed a booth in the of gaining access to activities families went to Alcublas to plant cafeteria of the company linked to health and well-being. trees in partnership with the WWF restaurant throughout the Some examples: support and the municipal council of the month of October 2017. for parents’ medical expenses city. The program included: (in the Asian cultural context, taking care of one’s parents is MEETING THE essential), childcare expenses, Occupational Health Department teams to hear about their missions in terms of employees

A “SELF-MASSAGE” workshop in order to learn about a number of easy steps for relieving muscle tensions

AN “AMMA MASSAGE” workshop to effortlessly stimulate and boost the body, improve physical condition and to feel relaxed. International Volunteer Day in Spain

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 38-Acting TAKING ACTION FOR LOCAL COMMUNITIES

We are convinced that our societal actions are vital for the combined growth and development of our business, as well as for the areas in which we operate our activities.

AMITABH TIRIAR Head of India Manufacturing Distribution of drinking water in India

Very active in 2017, the sites of Following the decision to build a in the fields of nutrition, health, Pantnagar, Gokak and Viramgam new pea proteins plant in 2017, in agriculture or the environment. (India), based their many actions Portage la Prairie (Canada), the In Keokuk, the Group gave a around three main stakes: health Group partnered with Recreation financial donation to the Keokuk and hygiene, education and the Opportunities for Kids to fund Neighborhood Initiative in order to communities. We organized “Roquette After School.” take action for the benefit of activities within and around The initiative provides the region. each plant: schools, villages, etc. underprivileged children with The goal is to develop and preserve structured academic after-school certain neighborhoods in Keokuk Health: distribution of programs, healthy snacks and by offering more housing. This is an nutritional supplements for interactive activities such as innovative collaboration with the patients, raising awareness on cooking with the children. City, the Keokuk Area Chamber AIDS, etc. In the United States, we funded of Commerce, as well as the Infrastructure: renovation of university scholarships in 2017 Southeast Iowa Regional Planning buildings, etc. for students graduating from several Commission. Environment: tree planting, river secondary schools located near our cleaning, free access to drinking sites. A real opportunity to discover water. the talents of tomorrow, particularly

"The Keokuk Neighborhood Initiative is not just about tearing down homes and building new ones. It's about changing people's lives and restoring pride in the whole community. The people involved demonstrate a commitment and have a passion to work together to make Keokuk a great place to work, live and play."

MR. PEEVLER President of the Initiative “Roquette After School” in Canada

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE Acting -39

“Shanghai Young Bakers ” in China

Since 2011, the Group has been supporting the Since 2011, the Group has been supporting the Shanghai Young Bakers (SYB) charity program, “ISM 100 Talents Partnership” program in Lithuania. which offers, every year, free training in French The scholarships allow Lithuanian high school baking to 30 marginalized Chinese young people aged graduates to receive quality education free of charge. between 17 and 23. Since the beginning of this partnership, 262 students Every year, SYB sends two of its most talented have received scholarships. graduates to the prestigious École Française de Boulangerie et Pâtisserie in Aurillac. After receiving their CAP diploma in baking, the students return to Shanghai (China) and in turn become trainers for three years. They thus become models of success and a source of inspiration for all the students. In 2017, over 200 students received their diplomas. The Group provides financial support to this educational program, thus marking a wonderful interactive partnership in terms of societal responsibility. The “ISM 100 Talents Partnership” program in Lithuania

For a country experiencing a considerable level of brain drain, it is a victory to be able to retain talented students to study and work in Lithuania.

LAIMA CIGRIEJUTE- VITKAUSKIENE Head of Communications and Public Affairs Europe

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE BIOREFINING SUSTAINABLY 1 OPTIMIZE OUR ENERGY CONSUMPTION

By installing energy-efficient solutions and using relevant renewable energies. 2 PRESERVE WATER

By optimizing our processes to minimize consumptions and installing efficient treatment technologies. 3 FURTHER REDUCE OTHER ENVIRONMENTAL IMPACTS

By implementing the most relevant solutions based on local specificities.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 42-Biorefining BIOREFINING

The planet faces major challenges. Climate change has a direct effect on natural capital. We engage in the fight against global warming by developing, for example, renewable energies and by improving our performance in terms IN 2025 of energy efficiency. Generally speaking, the environment and the we are committed to economy are linked, and any gains made in terms of energy results ensuring that, compared in a dual economic and environmental advantage. to 2015, our energy efficiency improves by 10% A NEW ENVIRONMENTAL and our water consumption per product ton reduces POLICY by In April 2017, a new consideration of local communities environmental policy was signed and the commitment to reduce 20% by Jean-Marc GILSON, Chief and optimize waste in its Executive Officer of Roquette, manufacturing sites. This drive is At the same time, and was broadly disseminated perfectly aligned with the we are committed within the Group and to its Biorefining pillar of the Group’s to implementing customers. Roquette established Sustainable Development technical installations clear goals for the entire company approach. in the improvement of its that produce less CO All employees and sites are 2 environmental footprint. thereby preventing concerned. Each person at The new environmental policy an individual level must take bears quantified commitments the environment into account with regard to energy efficiency in his or her daily acts and 1 MILLION and water consumption. It also tons of CO emissions decisions, all over 2 covers implementation of by 2025. the world. management systems that are certified ISO 14001 and 50001 across all sites, as well as

Roquette site in Lestrem (France)

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE Biorefining -43 ROQUETTE RECEIVES THE RENEWABLE ENERGIES AWARD

In France, the President of the Renewable Energies Union presented the Roquette Group with the Renewable Energies Roquette site in Beinheim (France) Award, in recognition of the company’s commitment in favor of geothermal FOR A MORE power and biomass. Supported by ADEME SUSTAINABLEWORLD (French Environment & Energy Management With the conviction that protecting the planet, and especially Agency), the establishment global warming, is a key concern of citizens, we strive of geothermal power and to minimize our environmental impact on a daily basis. wood energy plants provide an energy supply to the Roquette Group’s production site OPTIMIZING OUR ENERGY in Beinheim (France) that CONSUMPTION is 75% renewable. This geothermal power Committed to a responsible producers. One of them plant designed for and innovative environmental has identified the Roquette industrial use – first of approach, we eagerly support Group as one of the its kind worldwide – ambitious projects for the companies most open produced in partnership development of renewable to innovation and green with Electricité de Stras- energies. solutions in terms of energy consumption. bourg and Caisse In Lithuania, our environ- des Dépôts, is the result We equally invest in mental approach has already of a great collaboration energy-saving solutions, led to a reduction in CO journey that drew on 2 which helps reduce our emissions by almost technical and human energy consumption and 83,000 tons in 2017. know-how. maximize its efficiency. 100% of the electricity that we use comes from renewable ZOOM energy sources (solar, wind and hydraulic energy) delivered by certified

Our growth strategy is hinged on our capacity to align our actions, decisions and investments with a long-term approach. The award presented today rewards this vision geared towards long-term sustainability. For an industrial company, investing in renewable energies means reflecting about one’s future, considering one’s customers and their expectations.

GIANFRANCO PATRUCCO Executive Vice President Global Operations

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 44-Biorefining

REDUCING ZERO LIQUID RELEASE TECHNOLOGY OUR WATER IN INDIA

CONSUMPTION Like at the site of Gokak in 2016, the site of Viramgam has begun Water is essential for our setting up the Zero liquid release manufacturing process and its technology in 2017. It consists of increasing scarcity worldwide is recycling and reusing water, thus one of our concerns. reducing the need to obtain fresh water from the river. This action We are committed to optimizing helps preserve the environment and water consumptions and to using benefits the local communities. this resource respectfully on a daily basis. PRESERVING INCREASINGLY BETTER MANAGEMENT IN THE AIR QUALITY TREATMENT OF EFFLUENTS The Roquette Group strives to limit Due to the expansion of the major impacts of its production plants Vic-sur-Aisne site, we have on the atmosphere. undertaken works to enhance the treatment of effluents: A TECHNICAL, HUMAN • Improvement of rainwater treatment, AND FINANCIAL • Performance improvement INVESTMENT in the treatment of nitrogen and phosphorus, This investment is scheduled to take • Reducing the tonnage place over four years at the site of plant sludge treatment. of Lestrem (France). After equipping a pilot plant with a biofilter in 2016, the site continues to treat Volatile Organic Compounds (VOCs) with the installation of a Regenerative CONSUMPTION Thermal Oxidizer (RTO) for another production unit. This cutting-edge In Italy facility helps treat air and emissions, * without external heat sources, once -16.7% the reaction temperature has been water consumption reached. between 2013 and 2017 A NEW HIGH-PERFORMANCE GAS BOILER * 3 ZOOM m of water consumed per ton of used corn At the site of Nanning, China, the replacement of the previous boiler with a new high-performance gas boiler considerably reduces the quantity of dust released into the atmosphere.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE Biorefining -45

MINIMIZING In 2017, an awareness campaign was launched in Beinheim (France) to AND RECYCLING improve waste sorting at the source. WASTE Without sorting, no recycling! By sorting recyclable waste, we ensure re-utilization thus cutting back on The Roquette Group extracts all the natural resources. It should be noted components of plant-based raw that the waste sorting in place also materials and generates very little helps reduce expenses at the site as waste. To achieve this result, many materials are recyclable. the sites implement various systems contributing to a circular economy: PRESERVING Spreading BIODIVERSITY Most of the sites do the spreading of effluents around the plants. This THANKS TO technique makes it possible to provide IMPACT STUDIES the soil with an amendment while taking care of the agronomic and environmental qualities of the land. For the Roquette Group which extracts ingredients from plant-based Methanization raw materials, the protection of The recovery of energy for certain biodiversity is essential. The effluents as biogas makes it possible to ecosystems are indeed vital for preserving the natural capital reduce CO2 emissions and waste. of the planet. Recycling They supply the planet and help Most sites sort their waste, in regulate it (protection of natural particular for paper, cardboard resources especially against diseases), and metals. as well as contributing to the water cycle. With knowledge of these stakes, we conduct biodiversity impact studies before any new works. For example, the implementation of the new boiler at the site of Gokak (India) was preceded by a study of the impact on a bird sanctuary located about ten kilometers from the site. The cleaning of the Markhandeya River, located near the site, and the planting of 500 trees were also done in 2017.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 46-Biorefining

RELYING ON Referred to as IRIS (Incident Reporting Initiative & System), AN EFFICIENT it relies on our internal information HSE REPORTING system. It was rolled out to all sites around the world in six months SYSTEM thanks to many ambassadors specifically trained to this end. With the aim of supporting

ZOOM This approach is fully aligned cultural change in HSE with the HSE cultural evolution, (Health, Safety & Environment), helping achieve a level of excellence ISO 50001 we set up a new tool for recording that is crucial for improving events. our collective performance. ISO 50001 is an It now helps improve prevention international standard that by collecting all types of HSE defines the requirements events around the world (accidents, for implementing near misses, hazardous situations, energy management etc.). systems. Efficient energy The analyses and solutions management helps established for each one of them organizations to cut are registered, something that costs, reduce their energy promotes the sharing of good consumption and address practices and helps consolidate global warming. the statistics of the Group.

Over the last two years, the Italian, Spanish, Lithuanian and the four French sites have been ISO 50001 certified.

We must continue to improve our culture in terms of the environment and we aim to obtain ISO 14001 and 50001 certification for all sites by 2021.

JEAN-FRANCOIS HERLEM Head of Environment

HSE workshop

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE Biorefining -47

Operational Excellence team

OPERATIONAL EXCELLENCE THE GUARANTEE OF SUSTAINABLE PERFORMANCE

Our commitment in terms A genuine dynamic was initiated. of Excellence was strengthened These efforts constitute the in 2017. Many key people became framework of the RAISE (Roquette genuine ambassadors for rolling out Active Improvement in Sustainable improvement initiatives. Excellence) program, which is based The goal is to help frontline on: employees with the continuous • Training sessions followed by improvement of our performance. systematic application in project The development of their skills management, was a key aspect undertaken by • The setup of a reference system the Manufacturing Excellence team, for best practices, and supported by local resources • Available standards. at our manufacturing sites. We delivered specific and appropriate In 2017, a number of employees training at the dedicated in-house received Black Belt, Green Belt and Academy. Yellow Belt training. These courses rely on the concepts of Excellence Substantial improvements and Six Sigma, structured methods were noted for production issues aimed at consistently improving as well as for service and process quality and efficiency. environmental issues. The establishment of a number of tools and standards fostered a consistent quest for Excellence and helped in setting up and sharing best practices.

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 48-Reporting ENVIRONMENTAL DATA

2017 2016 GRI

FOSSIL ENERGY USED

Electricity GWh 2,552 2,401 G4-EN3

Natural gas GWh 7,286 7,629 G4-EN3

Domestic heating oil m3 283 121 G4-EN3

Coal + Petcoke Kt 366 366 G4-EN3

RENEWABLE ENERGY USED

Wood kt (100%DM) 136 109 G4-EN3

Rice husk Kt 117 195 G4-EN3

ENERGY PRODUCED

Electricity GWh 1,578 1,529 G4-EN3

Biogas GWh 69 79 G4-EN3

PUMP WATER

Process water 106 m3 63.9 59.2 G4-EN8 (rivers, aquifers, urban network)

Water returned 106 m3 34.0 40.0 G4-EN22

COD discharged t/kt of starch 2.17 1.45 G4-EN22

AIR

CO2 emissions (Scope 1 and 2) teq CO2/kt of starch 773 795 G4-EN16

SO2 emissions t/kt of starch 0.32 0.30 G4-EN21 NOx Emissions t/kt of starch 0.92 1.00 G4-EN21

Dust t/kt of starch 0.35 0.26 G4-EN21

WASTE

Hazardous t/kt of starch 0.28 0.27 G4-EN23

Non-hazardous t/kt of starch 11 11 G4-EN23

Recycled (except spreading) t/kt of starch 25 32 G4-EN23

Spreading teq 100%DM/kt of starch 33 39 G4-EN23

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE SOCIAL Reporting -49 DATA

2017 2016 GRI WORKFORCE (ENTIRE GROUP – TOTAL PERMANENT STAFF AND FIXED-TERM CONTRACT STAFF AS OF DEC. 31) Per geographic region Europe 5,031 4,955 G4-10 Americas 895 532 G4-10 Asia 2,473 2,522 G4-10 Group 8,399 8,009 G4-11

PROFESSIONAL EQUALITY (ENTIRE GROUP – TOTAL PERMANENT STAFF AND FIXED-TERM CONTRACT STAFF AS OF DEC. 31) Male Employees 6,590 6,314 G4-LA12 Including % of managers 15.5% 15.9% G4-LA12 Female Employees 1,809 1,695 G4-LA12 Including % of managers 14.0% 12.4% G4-LA12 Ratio of Women/Men 27.4% 26.8% G4-LA12

HIRES/RETIREMENTS (ENTIRE GROUP) Hires 559 650 G4-LA1 Resignations 295 247 G4-LA1 Layoffs 63 127 G4-LA1 Death 14 13 G4-LA1 Retirement 55 38 G4-LA1

Other departures (common agreement, 87 87 G4-LA1 transfers to other sites, etc.)

TRAINING (LIMITED SCOPE)

Hours/employees 21.6 22.5 G4-LA9

INTEGRATION OF WORKERS WITH DISABILITIES (FRANCE SCOPE)

Workers with disabilities 180 181 G4-LA12

SAFETY (ENTIRE GROUP) FR1 and FR2 (see page 50) Days lost 810 1,108 G4-LA6 Severity rate 0.06 0.08 G4-LA6

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE 50-Reporting PERFORMANCE INDICATORS

2017 2016 2025 Goal

BIOREFINING INDICATORS

Energy efficiency Ratio 0.98 0.99 0.90

Specific water consumption Ratio 0.98 1.24 1.00

teq CO2 CO2 tons avoided annually 760,117 706,035 1,000,000 avoided

SOURCING INDICATOR

% of “sustainable” raw materials % 6.3% 6.0% 20%

INNOVATING INDICATORS

% of projects meeting % 54% 53% 70% several “sustainable chemistry” criteria % of solutions offered to our customers meeting % 85% 62% 80% the Sustainable Development Goals of the UN

ACTING INDICATORS

Frequency rate of work accidents 1.24 2.31 0.5 with stoppage (FR1) Frequency rate of work with and 3.45 5.06 1.5 without stoppage (FR2)

ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 2017/ ROQUETTE REPORTING Reporting -51

Since 2008, the Roquette Group has been publishing a Sustainable Development & Activity Report. REPORTING SCOPE METHOD

To ensure the reliability of our information, we apply Several frames have been defined, based on the several methods prepared by the various Group indicators. Social indicators: the Group scope includes departments. These documents define the scope the legal entity Roquette Freres and all its directly or and provide, in a precise and easy to understand way, indirectly controlled sites with a stake of more than the definitions of the indicators chosen in this report 50% at December 31 of the year of reference. and in the management reports. The limited scope includes the legal entity Roquette Indeed, in accordance with the enforcement order Frères and its industrial subsidiaries with a workforce for the French Act known as Grenelle II (Article 225), of over 50 employees, directly or indirectly controlled extra-financial reporting became a requirement for at more than 50% and counted as part of the Roquette the company in 2013. To this effect, the indicators Group for at least one full year on January first and the information published in the management of the reference year. report are reviewed by one of our independent external Environmental indicators: the scope defined concerns auditors, KPMG. Much of the information is also all industrial sites integrated into the Roquette Group listed in this report. for at least three years at January 1 of the year of Lastly, Roquette was inspired by the ‘‘G4 Guidelines’’ reference, directly or indirectly controlled with of the Global Reporting Initiative (GRI), and a stake of more than 50%, and for which the energy our indicators are listed according to the GRI consumption is above 1,000 tons equivalent petroleum classification (workforce indicators G4-10 and G4-11, (TEP) per year (and above 5,000 TEP/year for the for example). two last years that preceded the fiscal year for the three performance indicators).

THANK YOU TO ALL CONTACTS OUR CONTRIBUTORS! CORPORATE COMMUNICATIONS This report was prepared with the help of many Carole Petitjean – [email protected] Roquette employees, as well as other stakeholders Séverine Lepers – [email protected] outside the Group. PUBLIC AFFAIRS We thank each one of them for their valuable Anders Liljegren – [email protected] collaboration and contribution to the development PHOTO CREDITS AND INTERVIEWS th of this 10 edition. Roquette iStock Photo EDITORIAL PANEL Franck DUNOUAU (Hikari Corporate) Carole, Séverine, Clémence and Anne. The Communications and Public Affairs team GRAPHIC DESIGN Les Enchanteurs

Legal information: To the best of our knowledge, all information contained in this document is accurate. However, all indications, recommendations and suggestions are provided without any guarantees. Furthermore, none of the information provided should be considered as permission or incitation to infringe any existing patents. Partial or total reproduction of this report is forbidden, unless prior written authorization is obtained from Roquette Frères. ® and ™ indicate registered trademarks of Roquette Frères.

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