Moving forward with purpose
Sustainability Report Contents
Fundamentals 04 Moving forward with purpose – CEO message 06 At a glance 08 Toward development goals
Pillars of sustainability 16 Our people 22 Our environment 30 Our partners 36 Our communities
Platform insights 44 Palm 48 Juice 50 Coffee 52 Cotton 54 Soybeans 58 Freight
Sustainability Report 2018 1 Fundamentals 04 Moving forward with purpose – CEO message 06 At a glance 08 Toward development goals
2 Louis Dreyfus Company Sustainability Report 2018 3 Fundamentals Pillars of sustainability Platform insights
Moving forward Our performance against targets in 2018 with purpose CEO message 11 6 6 7 33 1 Completed In progress Amended Missed Newly set Removed
Introduced just over a year ago, our purpose by 1% in 2018 and, although there are aligned with our sustainability commitments First, we will be evolving our Corporate perfectly reflects and drives the focus of our good reasons for this, that is not where we and meet consumers’ increasing demand Sustainability Policy, originally written business. A lot of work was carried out in want to be. We will redouble our efforts in for product traceability. We are happy to in 2010 as an internal document, into 2018 to give our people across the company 2019 to attain the target 5% reductions by embrace greater scrutiny and work to find a publicly available statement of our the opportunity to share their insights and 2022 (see pages 22-28). solutions to some of the challenges. commitments, globally and in specific value suggestions on what exactly it means to chains such as palm, soy and coffee. It will make our purpose an integral part of our In other areas, our partnerships with expert The road is not necessarily easy, but I, like also define more formally our commitment day-to-day business. organizations produced great results in everyone at LDC, am resolved to focus on to promoting human rights in accordance 2018. We far exceeded our targets in achieving commercial success sustainably, with the United Nations’ Guiding Principles At the same time, we are conscious that cotton by increasing the amount of Better in line with our purpose. on Business and Human Rights. there is still much to be done and that no Cotton Initiative-verified produce we one organization can solve the challenges purchased by 140% year-on-year, and by Diversifying for success Secondly, and building on this, we will of feeding a growing world population 824% compared to 2013 (see page 52). In Diversity is one of LDC’s core values, reinforce our sustainability governance sustainably. We are convinced that only by addition, we learnt that thanks to our long- and indeed the cultural, geographic and processes with a new oversight committee working together to find shared solutions standing partnership with the International commercial diversity of our business is one for each of environmental and human rights to common global issues can we create Labour Organization (ILO) and myriad other of our fundamental pillars of success. But protection. Both committees will include a future that is sustainable and fair for all. stakeholders, we achieved our objective of because we want to lead our industry in members of LDC’s Senior Leadership Team Partnership among the myriad actors – eradicating child labor from cotton harvests this space, we can and need to do more. and sustainability function, and we are governments, civil society, intermediaries, in Uzbekistan (see page 31). looking to engage acknowledged experts transporters, farmers, etc. – is the only A genuine respect for differences and from outside the company to sit on each path forward. Still, recognition of significant progress recognition of the importance of inclusion committee, to guide and challenge us. in Uzbekistan is tempered by concerns are already part of LDC’s DNA. To make This report highlights some of the about child labor in Burkina Faso’s cotton every aspect of working at our global I believe these steps, guided by our values achievements and positive steps we have industry, raised by NGO Solidar Suisse. company welcoming for every profile of and purpose, will provide LDC with a taken, alone and in partnership with others, Although all the cotton we source from talented person who might join us, we solid foundation on which to progress during 2018 to develop a sustainable and Burkina Faso is certified through the are exploring ways to bring this to life in further toward transparent, traceable and traceable value chain, and an environment in Cotton Made in Africa scheme, which practical ways. sustainable operations. which people and communities can flourish. trains farmers on the need to eliminate As we publish our Sustainability child and forced labor, we are investigating As a first step, in 2018 we completed Successes and challenges in 2018 how we can improve further. a gender diversity review, which has Report for the seventh year in a You will find in this report many examples of become the basis for a full-scale program row, I am pleased with the progress how our day-to-day business is inextricably Palm and soy also reported successes of broad policy changes and more granular linked with the drive toward a safe and during the year, not least with the adjustments as we move forward we are making and the connection sustainable future. introduction of our industry-leading Soy (see pages 20-21). of our long-standing sustainability Sustainability Policy. Here again, there is a 2018 was our first year spent working lot of work to do and we are likely to face I believe this will make LDC more inclusive, efforts to the company’s purpose of toward the global, time-bound environmental challenges, but we will remain resilient in regardless of gender, origin or background, impact reduction targets we set in 2017, and our commitment. and help ensure that we attract, nurture and fair and sustainable value creation. this process has pushed us to take great retain the best available talent everywhere. strides and to confront difficulties. In palm, we have already excluded certain suppliers for non-compliance with our Palm The future of sustainability We have made important steps in Sustainability Policy, and decided not to Our purpose to create fair and sustainable measuring our impact transparently, for trade with other entities in the same group value remains our ultimate goal. I would instance by presenting the full carbon profile on other commodities. like to mention two key areas where we of our Freight activities for the first time will put particular focus in the near future, (see page 59), as a baseline from which As our business strategy leads us further in order to deliver on our commitments to to improve. At the same time, we missed downstream in our value chains, we are also sustainability and transparency. our goal to reduce overall environmental looking to ensure that new investments are impacts associated with our asset footprint
4 Louis Dreyfus Company Sustainability Report 2018 5 Fundamentals Pillars of sustainability Platform insights
Moscow Calgary Rotterdam Wittenberg Antwerpen Warsaw London Kiev or meri a Ghent Paris Grand Junction Ürümqi Norfolk Geneva Milano Chicago Lyon At a glance Claypool, Sofia Krasnodar Shymkent Beijing Claypool Wilton Indiana, US Kansas City Istanbul Fresno Lisbon Madrid Zhangjiagang & Major initiatives to Cordova or sia Dongguan, China improve wastewater Lubbock Brazil Shanghai treatment Port Wentworth Innovations to Sugar Winter Garden Commitment to Alexandria Gurgaon reduce GHG Land preserving the Dubai Karachi Kunming emissions by Cerrado through urope Louis Dreyfus Company i e as reusing heat is a leading merchant and LDC’s Soy Mexico D.F. Sustainability Policy fri a Villanueva processor of agricultural Dakar Bangalore goods, leveraging its global Ho Chi Minh ou Lagos reach and extensive asset Bogotá or Abidjan ou eas La in Klang sia network to deliver for Kampala meri a Tema Singapore customers and consumers Nairobi around the world – safely, Mombasa Jakarta responsibly and reliably. Lima India Lusaka Collaborative project training 10,000 ou es São Paulo cotton farmers on Johannesburg La in meri a Asunción Santos intercropping, proper use of fertilizers and Brisbane Ethiopia & women’s inclusion Rosario Uganda Argentina Montevideo Partnership with the Buenos Aires Member of the Louis Dreyfus Melbourne Agroideal Foundation and PUR Projet to provide Key multi-stakeholder group identifying comprehensive coffee Grains & Oilseeds areas where soy farming training Rice farming expansion is Coffee suitable Cotton Sugar Juice Dairy Offices
Our vision Our mission Value Chain Segment Merchandizing Segment
To work toward a safe To use our know-how Grains Coffee and sustainable future, and global reach to bring contributing to the the right product to the global effort of providing right location, at the Oilseeds Cotton sustenance for a growing right time. population.
Juice Sugar
Our purpose Freight Rice
We are committed to supporting the communities we serve, through fair and sustainable value creation. Global Markets Dairy
6 Louis Dreyfus Company Sustainability Report 2018 7 Fundamentals Pillars of sustainability Platform insights
Toward SDGs 2 / 8 / 17 12 SDG / 13 development / 1 5 / goals 17 S D Deforestation, G s
Partnership Conversion & 1 6 / 1 Working Biodiversity 2 G / 7 D S / 1 2 Land Climate / 1 Led by our purpose, we aim to be Rights Change 3 a leader in our industry toward meeting the UN’s Sustainable
Development Goals (SDGs). These S
D goals, and the motivation behind Partnership Working G s 0
them, are clear, but the fundamental 1 6
/ 5
Water /
5 LDC
ways in which agribusinesses like 1 G
Diversity 2
Global Policy: s Scarcity D
SDGs
/ G
LDC can help are less well known.
S
1 D
Our Partners (p30) Challenges 4
S
/
1
Last year’s report outlined the SDGs we can Platforms 5 contribute to through our position in each of our Juice Soy value chains, and how we do so. In this report, Coffee Freight we explain how we will develop our direction and Cotton Palm governance to accelerate those efforts across S Human Waste the Group. D G Rights 2 1 s /
4 2 Land Rights / / 5 1 / 8 Safety Economic s / G 1 D SDGs 6 Development S Platforms Palm 9 Soy 8 / S 5 / DG 4 / 8 s 1 / Sustainable Development Goals (SDGs) SDG
SDG 1 No Poverty
SDG 2 Zero Hunger Diversity SDG 3 Good Health and Well-Being Safety Climate Change Waste SDG 4 Quality Education Global Policy: SDGs Global Policy: SDGs Global Policy: SDGs Global Policy: SDGs SDG 5 Gender Equality Our People (p20) Our People (p17) Our Environment (p23) Our Environment (p23) SDG 6 Clean Water and Sanitation Platforms Platforms Platforms SDG 7 Affordable and Clean Energy Juice Freight Coffee Juice SDG 8 Decent Work and Economic Growth Soy
SDG 9 Industry, Innovation and Infrastructure Deforestation, SDG 10 Reduced Inequalities Conversion & Human Rights Water Scarcity Economic Development SDG 11 Sustainable Cities and Communities Biodiversity
SDG 12 Responsible Consumption and Production Global Policy: SDGs Global Policy: SDGs Global Policy: SDGs Global Policy: SDGs SDG 13 Climate Action Our People (p20) Our Environment (p23) Our Environment (p23) Our Communities (p36)
SDG 14 Life Below Water Platforms Platforms Platforms Platforms SDG 15 Life on Land Cotton Palm Juice Cotton Coffee Juice Cotton Soy Soy Coffee Juice Coffee SDG 16 Peace and Justice Strong Institutions SDG 17 Partnerships for the Goals
8 Louis Dreyfus Company Sustainability Report 2018 9 Toward development goals continued Fundamentals Pillars of sustainability Platform insights
Deforestation, Climate Water Waste Leading with • Environmental Committee – the remit of this new committee will cover all other conversion & change scarcity purpose aspects of LDC’s environmental impacts, biodiversity principally in relation to our supply Originally established in 2010, LDC’s policy, chains. Standing members will include The challenge The challenge The challenge The challenge governance structure and group-wide our CEO, COO, Head of the Oilseeds Grow our activities with a lower impact, Use less water at our citrus farms and Eliminate waste from value chain stages approach to sustainability have evolved Platform, Head of Sustainability and Conserving forests and other high and help other stakeholders do the same. processing assets, while ensuring we control, including by investing in over the years. We have added policies and Head of SHE. We also aim to engage the conservation value habitats, while wastewater is clean, and help others logistics to optimize origination and governance where necessary, such as our membership of an acknowledged expert meeting rising food demand with do the same. reduce post-harvest waste, and help palm and soy sustainability policies, and from outside the company, and will invite diminishing available land. others reduce waste. our code of conduct for coffee suppliers. ad hoc attendees where necessary.
Today, following the introduction of our • Human Rights Observance Committee Applicable SDGs Applicable SDGs Applicable SDGs Applicable SDGs company purpose, it’s time to create a – also new, this committee will direct new, unified set of policies and procedures our approach on all human rights-related that will help ensure we both monitor and issues, from diversity within LDC to child maintain overall momentum. labor in supply chains, based on a new Human Rights Observance Protocol. Policy Members will include our CEO, COO, Our policies Our policies Our policies Our policies We are formulating a new, Group-wide Heads of HR and Sustainability, and New LDC Sustainability Policy New LDC Sustainability Policy New LDC Sustainability Policy New LDC Sustainability Policy Sustainability Policy, to be completed in representatives of our platforms and Palm Sustainability Policy 2019, which will provide a framework for all other business areas as appropriate. Soy Sustainability Policy platforms, bringing together best practice Again, we will seek to include relevant Coffee Supplier Code of Conduct from existing commodity-specific policies external expertise. Oversight Oversight Oversight and procedures, and adding a specific Oversight Human Rights Observance Protocol. SHE Committee SHE Committee SHE Committee • Regional Community Committees New Environmental Committee – these new committees will guide The new policy will also serve to govern and oversee the application of the all activities under our Community pillar, community framework within LDC’s new Key commitments Key commitments Key commitments Key commitments currently devolved for decision by each Sustainability Policy for their respective LDC global No Deforestation, No Peat, 5% reduction in our GHG emissions and 5% reduction in our water consumption 5% reduction in solid waste sent to of LDC’s regions. Activity will continue to region. They will review regional needs No Exploitation (NDPE) commitment energy consumption indexes by 2022 index by 2022 landfill by 2022 be planned and implemented at regional and priorities, select initiatives, set level, but in accordance with our new budgets and oversee implementation. policy guidelines. Each committee will be chaired by the Direct effect Direct effect Direct effect Direct effect relevant Head of Region, with other Juice, citrus farming in Brazil p48 Environment p22 Environment p22 Environment p22 Governance members selected case by case. Freight, fleet emissions monitoring and In 2019, we will establish a new governance chartering decisions p59 structure that allows focus on key areas, Details on how the policy and governance as follows: structure applies across the main challenges we face are opposite. Influence/partnership working Influence/partnership working Influence/partnership working Influence/partnership working • Safety, Health & Environment (SHE) Palm, NDPE activity p44 Community, training farmers pp37-41 Community, training farmers pp37-41 Community, helping farmers get products Committee – this existing committee Soy, NDPE activity p54 Cotton, training farmers p53 Cotton, training farmers p53 to market rather than wasting p38 will retain oversight and planning in Juice, Biodiversity and Conservation Plans, Coffee, training farmers p51 relation to workplace safety and the Rainforest Alliance activity p49 Juice, training farmers p48 environmental footprint of our offices, Coffee, training farmers and responsible logistic assets and industrial facilities. sourcing p51 Members include Regional SHE leaders Cotton, training farmers p53 and members of the LDC Senior Sugar, Bonsucro activity p31 Leadership Team. Community, training farmers pp38-41
10 Louis Dreyfus Company Sustainability Report 2018 11 Toward development goals continued Fundamentals Pillars of sustainability Platform insights
Economic Safety Human Diversity Land Working in development at work rights rights partnership
The challenge The challenge The challenge The challenge The challenge The challenge Contribute to economic empowerment Create a zero-accident work environment, Use fair labor practices; eliminate child Remove any discriminatory imbalances Respect the rights of all landowners in Meeting all our other challenges through creating jobs, contributing to by encouraging our employees and others and forced labor from our supply chains; that exist for people working for LDC, expanding our operations. education and promoting access to to live safer, healthier lives. respect diversity in all its forms. and influence others to do the same. international markets for people in areas where we invest in our footprint.
Applicable SDGs Applicable SDGs Applicable SDGs Applicable SDGs Applicable SDGs Applicable SDGs
Our policies Our policies Our policies Our policies Our policies Our policies New LDC Sustainability Policy New LDC Sustainability Policy Human Rights Protocol New LDC Sustainability Policy Human Rights Protocol New LDC Sustainability Policy Palm Sustainability Policy Soy Sustainability Policy Coffee Sustainability Policy
Oversight Oversight Oversight Oversight Oversight Oversight Regional Community Committees SHE Committee Human Rights Observance Committee Human Rights Observance Committee Human Rights Observance Committee All committees
Key commitments Key commitments Key commitments Key commitments Key commitments Key commitments Establish a new framework for all Reduce the frequency, gravity and LDC global policy: do not employ any Signatory to the UN Global LGBTI Complete an environmental and social N/A community projects in 2019 severity of accidents each by 10% person under 16 Standards for Business. impact assessment before building any year-on-year 7 targets for 2019-20, implementing new, or expanding any existing, asset. global changes to ensure an inclusive work environment at LDC.
Direct effect Direct effect Direct effect Direct effect Direct effect Direct effect Across our business, investing in People p16 People, primary policy p20 People, diversity and inclusion Environment, policy on impact N/A developing assets and creating jobs Juice, recruiting seasonal workers p48 work p20 assessments p23 Soybeans, implementing impact assessments in Brazil p55
Influence/partnership working Influence/partnership working Influence/partnership working Influence/partnership working Influence/partnership working Influence/partnership working Community, multiple training People, training employees and third Partners, Uzbekistan collaboration p31 Cotton, educating farmers in India p53 Soybeans, partnerships for land rights Coffee p50 projects pp37-41 parties p19 Palm, implementing Sustainability Policy protection in Paraguay p57 Community p36 with suppliers p45 Cotton p52 Soy, implementing Sustainability Policy with Environment p22 suppliers p54 Freight p58 Coffee, implementing Sustainability Policy Juice p48 with suppliers p51 Palm p44 Partners p30 Soybeans p54
12 Louis Dreyfus Company Sustainability Report 2018 13 Pillars of sustainability 16 Our people 22 Our environment 30 Our partners 36 Our communities
14 Louis Dreyfus Company Sustainability Report 2018 15 Fundamentals Pillars of sustainability Platform insights
Our Targets Reduce lost time Reduce Reduce gravity Complete gender people injuries to zero frequency of of workplace diversity reviews workplace accidents by across all LDC accidents by 10% YOY Regions 10% YOY
Completion: Completion: Completion: Completion: In Progress 2018 2018 2018
Progress: Progress: Progress: Progress: In Progress Missed Missed Completed
LDC employs an average of Committed to zero Global Frequency, Gravity & Severity Indexes 18,000 people throughout the year, and engages several LDC is committed to the long-term goal of creating a zero-accident work Year-on Year Year-on-Year Year-on-Year thousand contractors, across our environment at all our sites. Accordingly, Evolution in Evolution Evolution 180 locations around the world. our Safety, Health & Environment (SHE) Frequency in Gravity in Severity policy and management system aim to embed a safety culture in the daily work As a global employer, we are in a key position of every single employee and contractor +5.3% +10.5 % -7.9 % to contribute to Sustainable Development who works for and with us. 2018: 0.81 2018: 0.34 2018: 7.94 Goals to eliminate poverty, create decent jobs, 2017: 0.77 2017: 0.30 2017: 8.60 aid economic growth and promote inclusive This relentless focus on safety is reflected in work environments for many people, directly ambitious targets to reduce the frequency, and indirectly. gravity and severity of accidents every year. The Frequency Index shows the The Gravity Index is a subset The Severity Index shows the relation between the number showing the relation between relation between the number of Although we reduced the number of of workplace injuries requiring the number of workplace days away from work needed recordable injuries in 2018, with fewer medical attention, and hours injuries serious enough to result due to injury, and hours work. It worked. The ratio expresses in time away from work, and is expressed per 100 employees hours worked in total across our assets, the number of employees in hours worked. for 1 working year we missed our reduction targets for the every 100 who experienced an year. We nevertheless reduced the severity injury needing medical attention of accidents compared to 2017, and set during the year. a new target to reduce the severity of accidents by 10% year-on-year from 2019 onwards. Frequency Gravity Severity
2018 0.81 2018 0.34 2018 7.94 2017 0.77 2017 0.30 2017 8.60 2016 0.85 2016 0.31 2016 12.94 2015 1.46 2015 0.62 2015 16.86 2014 1.90 2014 0.99 2014 46.06 2013 2.29 2015 1.31 2012 2.50 2012 1.51
16 Louis Dreyfus Company Sustainability Report 2018 17 Fundamentals Pillars of sustainability Platform insights
Zero Lost Time Injuries 2012 to 2018 Making SHE a priority
The proportion of assets that operated We constantly strive to ensure that our Our efforts in 2018 centered on simplifying for an entire year without a lost-time SHE strategy is a priority at all levels of processes and executing our SHE strategy accident (which is an accident requiring our company. It is deployed through our efficiently, by: time off work) in 2018, remained SHE Policy and built around three pillars: comparable to 2016 and 2017 levels. • Rolling out a new KPI reporting system • Occupational Safety and Health to all assets, with a simpler, faster, more • Process Safety powerful tool to track performance from • Environment specific areas within assets up to global % of Facilities Recording Zero Lost Time Injuries Safety Day level, allowing employees to focus on Each asset shares best practices and injury prevention Asia Europe & Black Sea Middle East & Africa procedures through our SHE Management LDC celebrated its 9th annual Safety Day System, setting expectations for • Completing our suite of new standards on March 14th, 2018, reinforcing our safety- compliance by every employee and and policies for all activities identified as first culture and encouraging individuals to 2018 84 2018 71 2018 79 contractor. involving the highest risk take responsibility for collective safety in 2017 80 2017 77 2017 86 their work environment, with the theme SHE committees at global, regional and • Refining the SHE Management System “Our safety is my priority”. 2016 90 2016 76 2016 73 asset level are responsible for overseeing with standards for each asset in a leaner, 2015 74 2015 82 2015 83 the proper execution of this system, more effective process Taking place at every LDC location, over defining priorities, assessing resource 11,000 employees and more than 2,000 2014 63 2014 88 2014 92 requirements and monitoring progress contractors and joint-venture partners participated in the day’s events and 2013 73 2013 75 2013 67 against targets. activities.
North America North Latin America South & West Latin America Global
2018 82 2018 79 2018 76 2018 78
2017 79 2017 80 2017 83 2017 80
2016 89 2016 73 2016 93 2016 82
2015 70 2015 53 2015 75 2015 66
2014 81 2014 59 2014 61 2014 63
2013 78 2013 39 2013 68 2013 54
This year’s reporting preserves LDC’s previous regional structure to aid comparison
18 Louis Dreyfus Company Sustainability Report 2018 19 Our people continued Fundamentals Pillars of sustainability Platform insights
New Targets A diverse LDC Gender, by Region, with Age, by Region, with comparison to 2017 Nationality, Globally, with comparison to 2017 comparison to 2017 % of employees % of employees % of employees Reduce lost time injuries to zero With diversity one of LDC’s core values, seeking to inspire respect for every Male Female Under 20 30-39 50-59 70+ Target: 58 9 7 5 4 3 22 10 individual, and for diversity in all its 20-29 40-49 60-69 2018 In Progress forms, is a priority – and this in every aspect of our business. 2017 58 9 7 4 4 3 15 Reduce frequency of workplace EMEA EMEA accidents by 10% YOY To fully leverage the diversity of talent at LDC, we have identified the need to do Key 2018 Key 2017 Target: more to ensure our work environment 2018 61 39 2018 15 34 24 19 7 Brazil Brazil 2019 is inclusive. Supported by an external United States of America United States of America consultancy, in 2018 we conducted several 2017 62 38 2017 16 33 24 20 1 Argentina Argentina Reduce gravity of workplace rounds of consultation and interviews with China China accidents by 10% YOY people across all our regions. The results Russian Federation Russian Federation led to the definition of an action plan for India India Target: North America North America 2019 and 2020, and a diversity program Indonesia Other 2019 that will begin in 2019. Ukraine Other 2018 73 27 2018 14 23 24 27 11 1 Establish a Global D&I Oversight The first phase of action aims to build the Committee foundations for change through a series 73 27 13.5 23 23 28 11 1 of workshops for senior management and 2017 2017 Target: human resources, covering unconscious 0.5 2019 bias and inclusive leadership. The second phase is designed to embed and sustain North Asia North Asia lasting change across the company. 2019 and beyond Create a global D&I policy framework Although specific steps will differ in each 2018 60 40 2018 22 53 19 6 Protecting the safety and wellbeing • Integrating D&I policy and Target: region, they will fall under one of two materials into employee 57 43 28 50 18 5 of our people remains our top 2019 categories: 2017 2017 priority, and we will continue to onboarding processes at a aim for 10% annual reductions in regional level All HR teams to integrate D&I • Inclusive culture – promoting a culture our safety metrics and, ultimately, that celebrates diversity for a zero-accident environment • Establishing a set of globally materials in local employee South & Southeast Asia South & Southeast Asia across all our locations. applicable principles for onboarding process • Inclusive talent – ensuring that our talent promoting work-life integration Target: management process is bias-free 80 20 23 50 20 5 1 As previously mentioned, phase 1 and flexible work 2018 2018 2019 of our diversity program involves LDC also became a signatory to the UN 2017 80 20 2017 26 47 20 5 1 a range of activities to make our • Creating region- and platform- Global Lesbian Gay Bisexual Transgender inclusion goals happen over 2019- specific work-life integration Create a global inclusive and Intersex Standards for Business in 2020, including: options recruitment standard 2018. As pointed out by our partners at the UN (see page 34), we are at the beginning North Latin America North Latin America • Establishing a Diversity & • Refreshing our employee value Target: of our work, and these standards will Inclusion (D&I) Oversight proposition and our approach to 2019 inform our ongoing program of change 77 23 3 30 32 21 12 2 Committee attracting talent at LDC. 2018 2018 Establish global principles for • Incorporating D&I within business • Setting a global inclusive promoting work-life integration 76 24 2.5 30 32 21 12 0.5 2017 2017 planning and review processes recruitment standard for LDC 2 Target: • Creating a global policy 2020 framework with flexibility for South & West Latin America South & West Latin America local implementation Put into place region- and platform- specific options to promote work- 87 13 20 43 25 10 1 2018 2018 life integration and flexible work
2017 86 14 2017 23 45 22 9 1 Target: 2020
Refresh the LDC employee value Global Global proposition and talent attraction strategy 2018 75 25 2018 2 25 35 22 13 3 Target:
2017 75 25 2017 2 26 34 21 13 3 0.5 2020
20 Louis Dreyfus Company Sustainability Report 2018 21 Fundamentals Pillars of sustainability Platform insights
Our Targets Reduce Reduce global Reduce Reduce solid Reduce Reduce global Reduce Reduce solid environment global energy greenhouse global water waste sent to global energy greenhouse global water waste sent to consumption gas emissions consumption landfill by 1% consumption gas emissions consumption landfill by 1% by 1% year- by 1% year- by 1% year- year-on-year by 1% year- by 1% year- by 1% year- year-on-year, on-year on-year on-year on-year, each on-year, each on-year, each each year year from year from year from from 2019- 2019-2022 2019-2022 2019-2022 2022
Completion: Completion: Completion: Completion: Completion: Completion: Completion: Completion: 2018 2018 2018 2018 2022 2022 2022 2022
Progress: Progress: Progress: Progress: Progress: Progress: Progress: Progress: Missed Missed Missed Missed In progress In progress In progress In progress
Feeding 9 billion people in 2050 will require 50% more Biodiversity Emissions, agricultural production and 15% Targeting We prioritize the protection of ecosystems water and waste higher withdrawals of water.1 both in our daily business operations and emissions when we expand our footprint. Having set time-bound reduction targets The need to increase production in 2017 across all our environmental may compete with the need reductions in all We recognize that losing land of high metrics, 2018 was an extremely to preserve land with high areas of our ecological value destroys habitats, has challenging year. ecological value that is vital knock-on effects for climate change, business affects water retention and can disrupt local Overall volumes of feedstock handled to our global ecosystem. communities. That is why we launched our were down 10%, and some of our regions company-wide No Deforestation, No Peat, were affected by extreme weather events. No Exploitation (NDPE) commitment in Since our metrics are based on resource LDC has a leading position in the value 2016, which leads us to: usage (or waste) per ton of feedstock chain, as a global merchant and processor processed or handled, the volume reduction of agricultural goods, with logistic assets • Conduct environmental and social impact heavily impacted our performance against though only limited farming operations. assessments before commencing a targets despite improvements at most of Our position gives us a responsibility and new project in an area with potential our locations. It is worth noting that these opportunity to source and distribute products sensitivities – for instance in building issues mostly affected South America. reliably and responsibly, while reducing the new logistics capacity in northern Brazil environmental impact of our sector. (page 55). This context led to a disappointing 2018 Prioritize performance across environmental metrics Our work therefore focuses on: • Replace habitats that we build over with annual targets missed, but we will when we extend or develop new assets. the protection redouble our efforts to get back on track to Biodiversity – preventing habitat destruction of ecosystems meet our 2022 targets, including significant that may be caused by our activities • Create and follow Biodiversity Protection new capital investments to be deployed in and Conservation Plans at all our citrus 2019-20. Emissions and energy usage – targeting farms in Brazil (see page 49). reductions in all areas of our business • Train farmers in responsible farming Water consumption and wastewater – practices that preserve habitats – for minimizing freshwater use and ensuring instance in our Coffee Platform, working wastewater does not cause pollution, with NGOs and customers (see page 51). mainly at processing assets Our NDPE commitment is a particular focus Solid waste generation – saving resources for our palm and soy operations, with more by reusing or recycling, and avoiding detail on pages 44 and 54 respectively. pollution by properly disposing of waste
1 The World Bank, 2017 (https://blogs.worldbank.org/ opendata/chart-globally-70-freshwater-used-agriculture)
22 Louis Dreyfus Company Sustainability Report 2018 23 Our environment continued Fundamentals Pillars of sustainability Platform insights
Greenhouse Energy gas (GHG) consumption emissions
GHG Emission Index Electrical Power Consumption Index
(Kg CO2e/MT) (Kwh/MT)
The GHG emissions index shows the The energy consumption index shows quantity of GHGs emitted per ton of the ratio of electrical power consumed feedstock either crushed or processed to process feedstock in each region. for each region in which we operate. For industrial facilities this refers to It is measured in kilograms of carbon feedstock processed, and in the case dioxide-equivalent per metric ton of of a warehouse or logistics facility we
feedstock (Kg CO2e/MT). refer to feedstock handled. The unit of measurement is kilowatt-hours per The year-on-year increase in this index metric ton (KWh/MT). includes a 7% absolute increase in emissions compared to 2017. In In 2018 we changed the way this index addition to the global decrease in is calculated, to reflect how we report on Ponta Grossa, Paraná state, Brazil volumes handled, the primary driver Dongguan, China this data. It now shows electrical power was the inclusion for the first time in consumption and not energy consumed Case study our reporting of the purchase of third by burning fuel, since our efforts to party-produced steam in Asia. The sale reduce the latter are tracked by the Energy Energy consumption of our fertilizers and inputs business Case study Case study GHG emission index. We are therefore consumption also removed several low energy focusing energy consumption on electrical Preparing soybeans for soybean oil production usage sites from our calculations. GHG emissions GHG emissions power consumed, in order to monitor our uses energy to crack the beans, to crush them footprint in a more streamlined manner. 16% to increase surface area, and to heat them. efficiency & solar energy This is the beginning of a process to reflect the goal of reducing fossil fuel 2018: 15.54 Kwh/MT Energy usage in the process depends on the 2017: 13.35 Kwh/MT In 2018, two soybean-processing plants Brazil and Kenya have excellent conditions consumption, with reporting ultimately amount of soybeans fed in, but the power in China, at Zhangjiagang and Dongguan, for harnessing solar power. This year we covering all carbon dioxide (equivalent) supply was not being modulated to account GHG emissions innovated to reuse heat, improve installed solar panels at both our Alto generated in our supply chain. for this at our processing asset in Ponta processes and thereby reduce emissions. Garças oilseeds warehouse in Mato Grosso Grossa, Paraná state, Brazil. Introducing a state, Brazil, and our palm oil storage In addition to the reduction in volumes tool to adjust energy consumption based on 18% To extract oil from soybeans, a significant facility in Mombasa, Kenya. handled, a significant rise in production soybean volumes, in addition to the use of amount of heat is used and then lost, in Asia (particularly biodiesel and sugar lighter, plastic buckets on soybean elevators 2018: 39.57 Kg CO e/MT 2 usually in the form of steam. Alto Garças was LDC’s first solar generation processing in China) pushed energy instead of metal, cut Ponta Grossa’s electricity 2017: 33.44 Kg CO e/MT 2 plant in Brazil, and made the warehouse consumption higher. Efficiencies will be consumption by 1.7%. Our teams in Dongguan found a way energy self-sufficient. It often generates made over the coming year to mitigate to reuse the heat, by introducing a heat more electricity than it needs, which is then this effect and bring about a return to exchanger to create the hot air required transferred through distribution lines to reductions in this metric. to dry soybean meal. This cut emissions supply nearby homes with clean energy.
from the site by almost 4 million Kg CO2e per year.
In Zhangjiagang, our teams designed a new heat exchanger to reuse heat given off in this same process. Between heating miscella to separate soybean oil from its solvent and cooling the oil that has been separated out, they then installed a new, more efficient exchanger. These efforts will
save over 1.5 million Kg CO2e annually.
24 Louis Dreyfus Company Sustainability Report 2018 25 Our environment continued Fundamentals Pillars of sustainability Platform insights
Case study Solid Water Water usage waste consumption Our citrus processing plant in Matão, São Paulo state, Brazil, found a way to save over 175,000m3 of water annually by investing in a new conveyor belt system.
The belt system is essential to move oranges around the facility, but used to require a constant flow of water to prevent slippage. The new belt system does not require water at all, saving Waste Index Water Consumption Index approximately 20m3 per hour. (MT/MT) (m3/MT)
The ratio here shows the amount of Our water consumption index shows waste produced and sent to landfill the ratio of water used for each metric for every ton of feedstock crushed or Solid waste ton of feedstock crushed or processed. processed. It is measured in metric tons (MT/MT) It is measured in cubic meters per per metric ton (MT/MT). metric ton (m³/MT). We no longer report on wastewater 32% An extremely dry growing season volumes to focus on key KPIs, in Brazil caused our citrus farms to 2018: 0.0018 MT/MT particularly on reducing water 2017: 0.0014 MT/MT have to use an additional one million consumption. Using less water, cubic meters of water compared to including by reusing water that might 2017. Combined with lower feedstock otherwise be treated as waste, will Claypool, Indiana, US volumes, especially in South & West positively impact our wastewater profile Latin America, despite an absolute as well. The proper treatment of water Case study Case study reduction in water consumption by 9%, that cannot be reused and its return this led to an 18% increase in this index. to public systems or watercourses Solid waste Wastewater remains, of course, a priority. We will therefore continue to report on our Refining palm oil at our facility in This year we took several steps to get ahead continuous improvement efforts in this Lampung, Indonesia, generates ash from of the phenomenal growth of our oilseed area, as you can see from the case operating boilers and bleaching earth, a processing capabilities in Claypool, Indiana, study opposite. bought-in product for cleaning palm oil US, which had created a rapid increase in Water during the process. the volume of wastewater our treatment Consumption Major improvements in solid waste systems were being asked to handle. reduction were, unfortunately, offset by Our local SHE managers identified a way to two one-off events in 2018, resulting in reuse these products, instead of discarding We installed additional storage tanks to 18% an overall increase in waste sent them as waste. They found a local cement hold wastewater at peak times, removing 2018: 0.297 m3/MT to landfill. factory, operated by Baturaja Cement stress from the treatment process. 2017: 0.252 m3/MT Persero, and a nearby brick maker, Putra We also installed frac tanks that more A combination of various reduction, Restu Ibu Abadi Company, who could both effectively remove organic contaminants, recycling and alternative waste disposal use the products, with other raw materials, improving capacity. Further projects are in methods contributed to excellent results in their manufacturing processes. the pipeline, including: in both North Asia (36% reduction) and North Latin America (42% reduction). In 2018 alone, this resulted in over 13,000 • A new deionization unit for the glycerin tons of ash and earth being turned into plant, which will reduce demand on other At our grain elevator in Port Allen, cement and bricks, instead of being disposed parts of the wastewater treatment process Louisiana, US, however, 11,100 tons of of as waste. With this approach we also save grain became wet during storage, could waste disposal costs, generate revenue by • A dewatering press that will reduce the not be processed and had to be sent to selling the ash and earth, and help two local volume of sludge currently applied to landfill. At our sunflower seed processing companies reduce their own resource usage. land by 90% plant in Lichtenburg, South Africa, waste seed husks produced in 2017, before we • Additional Dissolve Air Flotation units to took control of the plant, had not been improve final filtration disposed of and had to be sent to landfill in 2018. These two events combined represented 50% of all waste sent to landfill by LDC this year, which means we expect a huge improvement in 2019 compared to 2018.
26 Louis Dreyfus Company Sustainability Report 2018 27 Our environment continued Fundamentals Pillars of sustainability Platform insights
Environmental performance by Region
Each of LDC’s business regions has targets to contribute to the company’s reduction goals, as well as systems and targets, right down to asset level, to generate efficiencies.
This breakdown helps to see where opportunities arise across our global portfolio, while the case studies illustrate how autonomous, asset-by-asset efforts drive performance.
GHG Emission Index Electrical Power Consumption Index
(Kg CO2e/MT) (Kwh/MT) EMEA EMEA
2018 2.78 2018 17.25 2017 1.87 2017 11.62
North America North America
2018 22.81 2018 12.000.41 2017 21.02 2017 11.33
North Asia North Asia
2018 111.18 2018 33.96 2017 25.96 2017 25.05
South & Southeast Asia South & Southeast Asia
2018 48.06 2018 13.13 2017 36.90 2017 3.61
North Latin America North Latin America
2018 79.84 2018 21.55 2017 88.08 2017 21.50
South & West Latin America South & West Latin America
2018 16.78 2018 12.37 2017 14.94 2017 11.18
Global Global
2018 39.57 2018 15.54 2017 33.44 2017 13.35
Water Consumption Index Waste Index (m3/MT) (MT/MT)
EMEA EMEA
2018 0.145 2018 0.010 2017 0.115 2017 0.005
North America North America
2018 0.2190.41 2018 0.0019 2017 0.211 2017 0.0012
North Asia North Asia
2018 0.255 2018 0.0034 2017 0.285 2017 0.0028
South & Southeast Asia South & Southeast Asia
2018 0.222 2018 0.0031 2017 0.146 2017 0.0048
North Latin America North Latin America
2018 0.646 2018 0.0002 2017 0.593 2017 0.0004
South & West Latin America South & West Latin America
2018 0.129 2018 0.0009 2017 0.106 2017 0.0007
Global Global
2018 0.297 2018 0.0018 2017 0.252 2017 0.0014
28 Louis Dreyfus Company Sustainability Report 2018 29 Fundamentals Pillars of sustainability Platform insights
Our Code of Conduct – we will not tolerate child or forced partners labor anywhere in our supply chains
Our Rice Platform has its own concerns Collaboration in over the lack of visibility of labor practices at farm level, given its leading position 2018 as a purchaser of Asian rice, mostly in bulk, from wholesalers and local traders. As a leading global merchant and We engaged in several major initiatives In 2019, we will conduct our own due processor of agricultural goods, and many enriching interactions across diligence on labor practices throughout we have influence throughout the LDC this year. These are set out in the our rice supply chain. table overleaf, while various detailed value chain but recognize that examples feature in the subsequent Soft Commodities Forum we can have a greater impact business sections. Several other projects In 2017, LDC joined the World Business by working with others. This is deserve to be highlighted here. Council for Sustainable Development, the why Sustainable Development organization uniting global businesses in Eradicating child labor pursuit of sustainability goals, and became Goal 17, which advocates LDC’s global Code of Conduct states that one of the founding members of its Soft “partnerships for the goals”, we will not tolerate child or forced labor Commodities Forum (SCF). is so important to us. anywhere in our supply chains. Given that such labor mostly occurs at farm level, One of the SCF’s first significant initiatives and that our only farms are citrus groves relates to conserving the Cerrado biome in Brazil, we have to work particularly hard – an incredibly important ecosystem in We leverage our position to learn from, train to identify and remove such practices from South America that is under threat from and create change with others. Examples our supply chains. rapidly expanding agriculture. As part of of how we do this, and insights from some our commitment to help feed the world’s of our partners, appear in this section. Our The approach taken by our Cotton Platform Having discovered poor practices in growing population sustainably, we have partnerships also feature in the sections in Uzbekistan is an excellent example of Uzbekistan, the ILO set up a program in helped the SCF to develop a response. dedicated to our business lines: our collaborative approach and the positive 2014 to eliminate these in partnership with We can have a outcome that can result. the Uzbek government, supported by LDC As explained in the soy-specific section of Palm pages 44-47 and other ACME members through the ILO this report (see page 55), from the 2018 Juice pages 48-49 greater impact Following a complaint by an NGO in 2010 and the Child Labour Platform. harvest onwards, as SCF members we that cotton production in Uzbekistan Coffee pages 50-51 by working commit to report publically every 6 months often used child labor, LDC and other As a result of these combined efforts, the on the percentage of soy sourced in the Cotton pages 52-53 with others stakeholders in the Association of Cotton ILO has an ongoing, productive, consultative Cerrado, with the first report published in Soybeans pages 54-57 Merchants in Europe (ACME) worked with relationship with Uzbekistan and, by 2018, June 2019. Freight pages 58-60 the International Labour Organization (ILO) was able to report that “child labour is no 1 to persuade the Uzbek government to longer a major concern” and will continue Bonsucro take action. to monitor to ensure that this continues. We continue to support the efforts of Bonsucro to increase adoption of After a series of meetings and persistent We apply this collaborative approach its standards and practices for the lobbying by LDC and other ACME beyond Uzbek cotton. Following concerns sustainable production of sugar. All members, the Uzbek government granted raised recently about child labor issues relevant LDC facilities and trading entities the ILO unfettered access to monitor the in Burkina Faso’s cotton harvests, we are Bonsucro certified. Since we do not country’s cotton harvest in 2013. In parallel, will seek ways to replicate ACME’s joint grow sugar, we take steps to promote ACME and LDC joined the Child Labour success with the ILO, while continuing to Bonsucro to our suppliers and seek to Platform, a new collaborative initiative partner with Cotton Made in Africa to verify merchandize Bonsucro-certified sugar established by the ILO and the UN Global all cotton purchased from the country. wherever possible. Compact to eradicate child labor in global supply chains.
1 Major progress on forced labour and child labour in Uzbekistan cotton fields (ILO, November 2018), retrieved from https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_650697/lang--en/index.htm on 1 April 2019
30 Louis Dreyfus Company Sustainability Report 2018 31 Our partners continued Fundamentals Pillars of sustainability Platform insights
2018 Stakeholder Views from our engagements stakeholders
The table below outlines how David Cleary we work with stakeholders, as Global Agriculture Director, well as some great examples of The Nature Conservancy successful outcomes:
Stakeholder Type of Engagement Main Issues Examples / Areas of Interaction Customers • Meetings • Certification Project with JDE & others p51 • Internet • Project development
Suppliers • Meetings • Codes of conduct Palm suppliers p44 • Forums • Environment Soy suppliers p54 • Human rights Training farmers pp41, 48, 51 & 53 Working with LDC on soy:
Financial • Meetings • Annual and semi-annual ING interaction p35 the conversion conversation community • Regular calls progress discussions
I lead The Nature Conservancy’s Like all global averages, that undeniably So for some years we have been working NGOs • Meetings • Campaigns Nature Conservancy feedback p33 work on deforestation, and depressing fact conceals as much as it to advance the deforestation conversation • Calls • Progress reports Louis Dreyfus Foundation relationship p36 reveals. In some places we have made to a conversation about conversion: an • Meetings Sustainable Trade Initiative p53 one of the challenges I face is progress, in other places we are losing integrated approach to managing land • Roundtable discussions managing my CEO, who looks ground, and that is often down to large use that goes beyond just forests to the at global deforestation figures social, economic and political trends that conversion of all natural habitats. This does even large companies like LDC and large not mean freezing agriculture’s footprint, Employees • Intranet • Diversity and inclusion Diversity study p20 and sees that we don’t seem to • Forums • Safety training Choosing community projects p36 NGOs like The Nature Conservancy can but rejigging it. be making much progress: the only influence to a limited extent. But headline figure has been quite not always. Sometimes, as history has Once again, Brazil is the best example: in the often shown, individuals – and individual Cerrado, a number of very credible studies stable for years, when we need companies - can make a difference. show there is roughly 25 million hectares Communities • Open days • Health Community projects p37 to see it going down. of land already cleared that is suitable for • Volunteering • Education Developing soy logistics p55 We had an intense conversation with LDC soy. Most of that land has been cleared for • Nutrition this year around soy, which led to what pasture and some of it is marginal land that I regard as an industry-leading company with the right interventions can be reclaimed soy policy. Funnily enough, what makes for production. It’s not difficult to game a win- Peers • Meetings • Pre-competitive Soft Commodities Forum p31 it industry-leading is that it shifts the win future: expand soy into pasture, increase • Calls collaboration conversation away from deforestation. grazing efficiency to minimize displacement opportunities of ranchers, and (the really challenging One of the challenges we face, as piece) unlock the large amount of transitional a conservation organization, is the funding necessary to help farmers move unintended consequences of deforestation towards zero conversion direction. • Meetings • Human rights Soft Commodities Forum p31 Multilateral commitments. Brazil is the best example • Forums • Environment UN feedback p34 bodies of it. The Amazon, which dominates LDC’s new soy policy, released in 2018, northern Brazil, is right next to the Cerrado, was the first move by a major trader a mixture of savanna, woodlands and towards a zero conversion approach. forests, and where most of Brazilian soy There’s a sense in which that was the easy Donors • Calls • Project design and IDH partnership on Vietnam project p51 is grown. Both, from our standpoint, are part: as with any policy, implementation is • Meetings implementation globally significant conservation targets. the real test. But LDC deserves great credit • Field visits But if a commitment to protect the Amazon for converting to conversion first, setting only displaces pressure to destroy habitat that vital example which makes it easier to the Cerrado, rather than eliminating that for others to follow, as they are. We look pressure, it’s not a win for us. It condemns forward to working with LDC in the years us to playing whack-a-mole, as pressure to ahead on the hard part – making it happen. convert habitat shifts from place to place, in a world of mobile capital, adjustable supply chains and constantly expanding demand for commodities.
32 Louis Dreyfus Company Sustainability Report 2018 33 Our partners continued Fundamentals Pillars of sustainability Platform insights
Fabrice Houdart Geert Bierman Human Rights Officer, Director, Commodity Finance United Nations ING Group Office of the United Nations High Commissioner for Human Rights (OHCHR)
LDC and diversity
There is growing awareness Indeed, the decisions that companies take The language in the document is not With more than 38 million customers in We pride ourselves on financing of the plight of Lesbian, Gay, – whether in respect of human resources, prescriptive. It does not say that companies Empowerment for more than 40 countries, we believe our sustainability leaders and actively seek investment, supply chains and marketing must do everything everywhere. What role is to finance and facilitate society’s to cooperate with our clients to further Bisexual, Transgender, and – have a real and, in some cases, profound it does is encouraging them to find their Sustainable Growth shift to sustainability. In other words: improve their own operations and larger Intersex (LGBTI) people and impact on human rights of LGBTI people. voice on the human rights of LGBTI people contribute to progress – environmental, supply chains with regard to these topics. the crucible of human rights and continue on the journey they are on. economic, and social. As a global bank, our This potential is the reason why the United greatest impact is through the ways we In Louis Dreyfus Company we find a very violations they face around Nations Human Rights Office felt the need In 2018, Louis Dreyfus Company channel the flow of money entrusted to us. committed partner in this journey. Few the world. to translate the United Nations Global expressed publicly its support for these ING’s purpose is to empower multinational companies have such a Compact, of which LDC is a signatory2 Standards. In doing so along with 250 of people to stay a step ahead We make a difference with what we thoroughly felt drive to improve all aspects since 2010, and the United Nations guiding the World’s largest companies, it sends do finance, such as the billions of euros of their operations and supply chain by The International Lesbian, Gay, Bisexual, principles on business and human rights a powerful signal that the private sector in life and in business. in energy projects we’ve done. These using their global position to do the right Trans and Intersex Association (ILGA) into standards on human rights of LGBTI believes it has a stake in human rights of Sustainability is an inherent range from wind farms, solar energy, and thing. Louis Dreyfus Company assists records1 that in 70 countries, people can people. After global consultations with all LGBTI people. Imagine the power that part of that. geothermal power production; to energy farmers, local communities, logistical still be arrested for consensual same-sex stakeholders, OHCHR launched the Global these companies have in inspiring and efficiency in buildings and production lines; partners and clients and thereby contributes relations, in 9, it is punishable by death LGBTI Standards of Conduct for business3 empowering people starting with their to electric vehicles and bio-based plastics; to ensuring that a growing world population and in 17 countries, bans are in place to in September 2017. own workforce to stand up for equality. to (waste) water treatment and supply has access to healthy nutrition. prohibit portraying of same-sex relations and circular economy solutions. We do and LGBTI culture. An estimated 2.8 billion The five standards can be summarized as: This is not only the right thing to do but is this through green loans, green bonds, We are proud of the discussions we have people – or 37% of the world population also the smart thing to do. The business and other innovative products and with Louis Dreyfus Company on ways – live in these areas. Unfortunately, these • Respect the human rights of their and economic case for inclusion has never financing constructions. commodity merchants can work with laws are only the tip of the iceberg as LGBTI workers, customers and been so well articulated. In short inclusive financial institutions to further improve the LGBTI people face human rights violations members of the public; societies and companies fare better. We make a difference with what we don’t human rights of all involved in the supply everywhere including in areas with the finance. Every client and transaction is chain, especially in the more vulnerable most progressive legal frameworks. • Eliminate workplace discrimination We are grateful to Louis Dreyfus Company assessed, monitored and evaluated against countries. We also take pride in our role against LGBTI employees; for leading by example. It is our hope that the requirements of our Environmental in structuring the sustainability aspects many others will join LDC in creating a true and Social Risk (ESR) framework to ensure of the first syndicated lending facilities to In 2019, as we mark the 50th anniversary • Support LGBTI employees at work private movement for social change on compliance and limit negative impact on Louis Dreyfus Company that has tangible of the Stonewall riots, an uprising widely because having the right policies in human rights of LGBTI people. the environment and communities. This sustainability KPIs embedded in it. The credited with sparking the modern LGBTI place is useless if nobody comes out; way, climate and environmental impact are core of these KPIs, focussing on reducing rights movement, we celebrate the Everyone is entitled to live free and equal in taken into account every time we make energy use, water use and disposed tremendous progress achieved. Yet, if we • Prevent discrimination and related dignity and rights. And the LGBTI equality financing or investment decisions. We also waste, perfectly fit with ING’s focus areas are to keep such momentum, consolidate abuses against LGBTI customers, movement needs the help of all companies say ‘no’ to certain companies and sectors, of energy transition, water and the circular these gains and expand them globally, it suppliers and distributors – and insist irrespective of their size, location or like with our aim to reduce our exposure economy. will require the active involvement of all that suppliers do the same; industry to join the global movement for a to coal power generation to close to zero parts of society – including, critically and world where all LGBTI people can find their by 2025. With such a strong match between increasingly, the business community. • Stand up for the human rights of right place in the humanity they belong to. Louis Dreyfus Company and ING, we LGBTI people in the communities We also make a difference when we look forward to a future where fruitful where companies do business. respond to financing requests with cooperation on sustainable initiatives “yes, but…”, outlining sustainability will only grow further! improvements the client must make first. As we assess potential clients and deals, our approach is to have a dialogue and support them in improving their environmental and social impact where possible. We believe this is more effective than excluding clients altogether. Of course if they don’t meet our standards and aren’t willing to change, we don’t do the deal.
1 https://ilga.org/ilga-map-sexual-orientation-laws-2019 2 https://www.unglobalcompact.org/what-is-gc/participants/11842-Louis-Dreyfus-Company 3 http://unfe.org/standards
34 Louis Dreyfus Company Sustainability Report 2018 35 Fundamentals Pillars of sustainability Platform insights
Our At LDC, we empower our people everywhere to create communities positive change locally and globally, in the communities where we operate.
LDC projects in 2018 Supporting education Working with local experts, we want to contribute to the in Wittenberg Sustainable Development Goals Inspiring over In the context of LDC’s global 2018 Safety, (SDGs) related to education, Health & Environment Day, the team at our poverty, health and life on earth. oilseeds processing facility in Wittenberg, Germany, took steps to support education 250 and training in the area. students Working with local experts, we want to As part of a longer-term plan to promote contribute to the Sustainable Development worldwide safe and healthy lifestyles in Wittenberg, Goals (SDGs) related to education, poverty, our teams supplied local primary schools health and life on earth. We do this by with books on healthy eating, donated creating jobs, protecting the environment, Farmer training center Meals for schoolchildren funds to the local youth football club, and training and educating communities, and in Gurugram in Vipingo provided personal protective equipment to supporting health projects. the town’s schoolchildren and youth fire At the end of 2018, we opened a training Timboni Primary School is a government fighters unit. Impact in partnership and information center for farmers in school in Vipingo, Kilifi County, near our As well as encouraging any of LDC’s 18,000 Gurugram, in India’s state of Haryana, logistics facility in the port of Mombasa, employees to propose initiatives for local where poor social and economic Kenya. Founded in 2016, the school has action across over 100 countries, our people conditions, and a lack of technical 1,300 pupils, mostly from local smallholder can submit projects for support from the knowledge, have hampered farmers farming families. Louis Dreyfus Foundation. in making the most of easy access to nearby Delhi and Gurugram city markets. With local children often eating only one The partnership between LDC and the meal per day, feeding its pupils is one of Foundation allows both organizations to Built near our India office in Gurgaon, the school’s priorities, but it lacks the funds multiply impacts in a common area of the center will train farmers in new crop to do this. LDC decided to set up a healthy work: supporting smallholder farmers in technologies and efficient irrigation breakfast program for the pupils to provide improving their livelihoods through more methods, aiming to increase yields and food for the children. The program includes sustainable farming. incomes sustainably. It will also provide occasional lessons on hand sanitation and information on markets, weather forecasts, first aid, to be delivered by LDC volunteers. LDC’s collaboration with the Foundation will and pest and disease control. Operated continue and increase over the coming year, by the District Horticulture Office (DHO) Following planning and preparation in 2018, with the objective that all Foundation projects in Gurugram, the center will provide a the program will launch in 2019. We also be defined through the local expertise of foundation for horticulture development in hope to develop the relationship with the LDC people, complementing LDC’s own the region. school, to launch a mentoring program and community programs. provide other financial support.
36 Louis Dreyfus Company Sustainability Report 2018 37 Our communities continued Fundamentals Pillars of sustainability Platform insights
Projects with the Fondation d’entreprise Louis Dreyfus Foundation in 2018
The communities each selected three Improving livelihoods açaí producers to visit the nearby Canaticú Vocational agri-school in Marajó Island cooperative, to observe best practices and in Ivory Coast understand how they might apply these in Communities along the Urinduba and their own community. The exchange visit This project to provide high quality Araraiana Rivers, near LDC’s future was followed by two workshops involving agricultural education to 30 young people terminal on Marajó Island, in Brazil’s State specialists from Canaticú, during which the annually in the Savanes district of northern of Pará, have limited financial resources communities developed an area in their Ivory Coast commenced in 2018. and poor access to many basic services. respective regions in which to test new management and farming techniques. Although agricultural development is a Our project with the Louis Dreyfus government priority in the country, this Foundation aims to strengthen their With the aim to improve productivity, rural district lacks accessible education productive capacity, especially in growing quality and profitability, technical centers. By building a school, and helping açaí fruit, by helping them to work together support will continue through 2019, Sustainable micro-farming to set up its management and curriculum, for the benefit of the whole community. helping producers as they learn better LDC and the Louis Dreyfus Foundation This involves helping them to organize their açaí production, and demonstrating its in Rurópolis hope to encourage young people to work better, training them and providing effectiveness to others. participate in the agricultural sector, ongoing technical support. Communities in Santarenzinho and while embedding innovative, sustainable Building on learning from Canaticú, the São Raimundo in Rurópolis city, also farming methods locally. next step will be to establish an “Açaí in Brazil’s state of Pará, face similar Port” in each community, as a single hub challenges to those near Marajó Island The project team has so far engaged to market the fruit, each run by a board (see above). Our approach here, however, with the local community, met a range of 58 5,000 elected by the community. has been to develop 8 micro-farming stakeholders and set up the management beneficiaries trees planted systems to help increase production, group. Feedback has been enthusiastic, sales and incomes sustainably. with a shared vision for economic development in the district. The project comprises 36 families, with 164 beneficiaries in total. Each family With feasibility and opportunity studies receives a tailored plan, and training on completed, and a site for the school Agroforestry for the environment in Itatinga finance, management and agricultural identified, the next steps are to select practices to help them implement it. We suppliers to design and build the facility, Near our citrus farm in Itatinga, São Paulo and trained to protect local vegetation by also helped them buy initial inputs and aiming to open the school by the end state, Brazil, LDC employees realized that avoiding the use of chemicals. We have will continue to provide technical advice. of 2019. with the support of the Louis Dreyfus also built logistic capabilities for product Foundation, local families could improve delivery to schools and street markets. A group representing 16 community and their income while recovering degraded governmental organizations managed the land through an agroforestry initiative in To date, the initiative has 58 beneficiaries, project set-up and governance, including partnership with the University of São and 5,000 trees (including many native selecting the beneficiaries. This approach Paulo (UNESP). species) were planted in addition to ensures close adherence to community a variety of vegetables. Soil quality is needs and builds collaboration and Starting with 13 families, experts from LDC gradually improving, people’s diets are capabilities within the community itself. and UNESP trained people to grow food diversifying and their capacity to supply in a way that not only improves nutrition new markets is increasing. With half of the training delivered to date, and generates additional income, but also families are already seeing benefits such benefits the local ecosystem by restoring We will continue to monitor environmental as improved product quality, sanitation and biodiversity. Beneficiaries are given the and social outcomes with existing environmental conditions, allowing them trees, vegetables and seedlings necessary beneficiaries, with the next step being to access new markets in the area. to implement the agroforestry system, to double the project’s reach.
38 Louis Dreyfus Company Sustainability Report 2018 39 Our communities continued Fundamentals Pillars of sustainability Platform insights
Resilience to climate Agroforestry for change in Ethiopia sustainability in Ethiopia ”I got the improved cook stove in July 2018, because LDC employees are working with the and Uganda I used to have eye problems Louis Dreyfus Foundation and Inter Aide due to the smoke produced to help farmers in southern Ethiopia Coffee accounts for 90-100% of farmers’ address three main challenges: income in the Southern Nations, Nationalities by the three-stone fire. I am and People’s Region of Ethiopia, but shifting very happy about it! Now, I weather patterns due to climate change are • Intensifying and diversifying production don’t have any eye problems • Preserving soil and farm resources expected to reduce production by 50% by • Coping with the impacts of climate 2050, and are already affecting yields. anymore and I discovered change many other benefits. I save a Since 2014, the joint project between LDC, the Louis Dreyfus Foundation and social lot of wood, I cook faster and The project’s innovative approach it is safer for my 8 children combines fodder production with soil and business PUR Projet has helped over 2,300 water conservation, complemented by a smallholder coffee farmers operate more as it cannot fall over. I also range of solutions such as agroforestry and sustainably and with greater resilience in noticed that the smoke that the face of climate change impacts through farmer seed autonomy. This protects soil goes out of the cook stove fertility and leads to productive capacity agroforestry, planting 159,000 trees for and food security. fruit, timber and shade. chimney keeps away flies that are harmful for my The need for timber connects to a In 2018, our work benefitted 900 farmers, The joint project brought its comprehensive beehives.” whose farms are now planted for fodder 510 health issue related to cooking, which is sustainable coffee farming training traditionally done over a fast-burning wood production and protected by 120km of farmers improving curriculum to Rwenzori, with 10 modules Marta Otiso, Ethiopia newly built anti-erosion structures. Other fire. This demands time to watch the fire, covering everything from land preparation benefits in 2018 include: soil fertility with generates harmful smoke and consumes to post-harvest practices, and has already green manure timber quickly, putting pressure on benefitted 800 farmers. • 1,200 families diversifying their forests. So in addition to growing further resources for fodder trees, the initiative is building efficient, Tree planting has commenced, with over • 510 farmers improving soil fertility safe cooking stoves. 50,000 trees already planted to date. with green manure We are also helping to rejuvenate coffee • 610 farmers producing and In 2018, the project was expanded to plants, with new plants provided to 33 conserving quality potato seeds the Rwenzori region of Uganda, targeting farmers in 2018. • 98,000 trees planted smallholder members of the Rwenzori Farmers Cooperative Union who face Having helped 150 families with cooking The objective for 2019 is to extend these challenges posed by the lack of shade stoves in Ethiopia, this part of the project practices to new beneficiaries, under the for coffee plants and struggle to manage is just starting in Uganda. expert supervision of Inter Aide. their operations.
”I am very satisfied with the shade trees I received, even comparing inside my farm, well shaded coffee trees are healthier than the ones in full sun. Many farmers come to see my parcel, they are often surprised with the coffee variety. They find it inspiring.”
Zemenay Birani – Fura cooperative, Ethiopia
40 Louis Dreyfus Company Sustainability Report 2018 41 Platform insights 44 Palm 48 Juice 50 Coffee 52 Cotton 54 Soybeans 58 Freight
42 Louis Dreyfus Company Sustainability Report 2018 43 Fundamentals Pillars of sustainability Platform insights
Palm Targets 2018 Integrate LDC Produce and Trace 90-100% Publish list of mill palm policy into maintain detailed of palm supplied suppliers Palm oil is the most widely used vegetable oil major contracts risk assessments to us back to the for various reasons, including its versatility and of all main mill yield, four to ten times higher per hectare1 than suppliers any other oil. Some estimates put demand Completion: Completion: Completion: Completion: for vegetable oils in 2050 at double today’s 2018 2018 2018 2018 levels,2 and palm oil production is expected to Status: Status: Status: Status: quadruple in the same period. Completed Completed Completed Completed
The challenge is to meet that demand responsibly, avoiding deforestation and LDC palm policy Traceability and Supplier engagement destruction of high carbon stock and Having launched our No Deforestation, transparency Our work to ensure that all suppliers high conservation value ecosystems No Peat, No Exploitation (NDPE) policy in understand, adopt and comply with for palm cultivation. 2016, our efforts since then have been Traceability is crucial to encourage LDC policy has multiple streams. to raise awareness among, and secure improvement in supply chains. Recognizing Palm oil being an essential source of adoption by, our suppliers. this, since 2017 we have pushed to trace One of these was to launch the Tools revenue for many farmers, for LDC this is 100% of our palm oil back to mill level, for Transformation Process (T4T) with a prime example of the challenge to deliver With no plantations of our own, we source irrespective of how we secure it, and to Earthworm Foundation this year, running value fairly and sustainably. That’s why palm oil to merchandize in two main ways: report on it. That in itself is unusual in an training workshops for suppliers to we choose to address the issue through industry where several operators do not LDC refineries. partnerships with multiple stakeholders, • We receive palm from third party mills at report traceability scores for commercial balancing competing needs expressed our refineries in Indonesia, which refine trading activities. In 2018, 35 representatives of mills in SDGs on zero hunger (SDG 2) and and sell the oil to customers. supplying LDC refineries participated in a responsible consumption and production LDC Traceability Progress 2015-2018 Our efforts with Earthworm Foundation workshop on details of our policy and NDPE (SDG 12), by aiming to: (formerly known as The Forest Trust) involve • We purchase palm oil from other Indonesia Refineries commitment. Suppliers then completed third parties, which we sell on to gathering and verifying GPS coordinates detailed questionnaires, to analyze the •• Preserve forests in their vital role in customers through our commercial from all entities in our supply chain back to, profile of their operations and highlight our global ecosystem H2 2018 100 office in Singapore. and including, mill level. We publicly report areas of potential concern. Subsequent these results every six months. H1 2018 100 workshops, which we aim to hold in 2019, •• Maintain and encourage biodiversity With this approach, we interact with a H2 2017 100 will cover the technical elements of our large range of different operators, and In 2018, we hit our target to achieve sustainability policy, such as definitions and •• Help local communities to develop H1 2017 100 palm oil purchases by our Singapore teams 90-100% traceability overall and, in the standards for High Conservation Value and through access to higher incomes H2 2016 100 often involve several intermediary entities second half of the year, our Singapore High Carbon Stock. between the mill and ourselves. We treat team achieved 90% traceability for its H1 2016 100 •• Prevent displacement of communities external trading book compared to 66% in this as an opportunity to seek adoption of FY 2015 100 In parallel, we continue to engage suppliers that live in forested areas our policy, to influence supply chains, and 2015. These achievements demonstrate with a raft of measures established in 2017:
to trace palm oil back to mill level. the impact we can have by working with Singapore Commercial others toward collective goals. • Screening all new suppliers for H2 2018 90 sustainability risks In 2018, we also expanded the range of H1 2018 89 • Ongoing risk assessments using Global data we publish, allowing others to hold Forest Watch and other tools us to account and adding: H2 2017 87 • Embedding our policy into major H1 2017 86 contracts that were not already covered • Lists of all mills supplying us with H2 2016 75 by a supplier NDPE commitment and are palm oil considered high risk H1 2016 79 • A breakdown of purchases by • Operating our engagement and grievance LDC division, origin and product FY 2015 66 process where there are allegations of • Our grievance protocol and list non-compliance with our policy of grievances Global • Engaging suppliers with on-site field visits, such as those we completed H2 2018 94 with Earthworm Foundation in Indonesia and Guatemala H1 2018 93 H2 2017 92 H1 2017 92 H2 2016 85 H1 2016 91
1 RSPO, A Shared Vision – 100% Sustainable Palm Oil in Europe: A Snapshot of National Initiatives, 2015 FY 2015 81 2 ibid.
44 Louis Dreyfus Company Sustainability Report 2018 45 Palm continued Fundamentals Pillars of sustainability Platform insights
Certifications obtained by LDC Palm: ••RSPO ••ISCC ••Good Manufacturing Practice (GMP+B2 and B3) ••Food Safety System Certification 22000 ••ISO9001 ••Halal ••Kosher
We also upgraded our analytical capabilities The list of suppliers that have been subject in supplier profiling in 2018, adding data to our grievance process, and the decisions 2019 and beyond New Targets on land ownership and concessions held taken as a result, are published on our Driving traceability remains a high priority, by each supplier. We completed risk website every six months. Trace 90-100% of the palm and we are working with suppliers to our assessments of our main suppliers and supplied to us, back to the refineries to develop a methodology to continue to maintain and improve these, mill achieve traceability to plantation level, and will do the same for new suppliers as Certified sustainable palm for which a pilot is underway. This will we add them. Target: LDC continues to source and sell palm be supported by remote sensing monitoring, especially for direct suppliers 2019 As explained in previous reports, including oil that complies with Roundtable for Sustainable Palm Oil (RSPO) and to our refineries. our policy in all contracts is ideal but Maintain detailed risk extremely difficult, for instance in the International Sustainability & Carbon Building on the T4T work commenced assessments of all our case of spot or one-off purchases. We Certification (ISCC) standards, as part of in 2018, we will work with Earthworm main suppliers will therefore continue with our approach our ultimate goal: No Deforestation, No Foundation to expand the training program to incorporate our policy to the extent Peat, No Exploitation. on both existing and new subjects, where Target: possible, especially where suppliers have a need is identified. Our objective is to 2019 no NDPE policy of their own. However, In 2018, we were able to increase certified drive further engagement, as we continue given our progress in traceability and palm oil sales by 17% year-on-year, and by to apply our verification, monitoring and transparency, this work is now an integral 1500% compared to 2012. Conduct and sponsor at grievance processes toward our primary part of our risk profiling rather than an least 2 technical workshops NDPE goal. independent workstream with its own on NDPE commitments time-bound target. Sold volumes (MT) with key suppliers In partnership with the Louis Dreyfus 2018 478 Foundation and one of our suppliers in Target: Managing allegations South Sumatra, Indonesia, a new project 2019 2017 410 will begin in 2019 to support the resilience and grievances 2016 375 and sustainability of smallholder farmers in Develop methodology for 2015 266 the country, who account for approximately traceability to plantation As mentioned above, our grievance 40% of palm plantations by area3 and yet 2014 210 level for high risk areas process serves to deal with cases where a often have the lowest yields. supplier is said to have violated LDC policy. 2013 180 Target: We review the allegations and publish 2012 30 Given the imperative to produce more palm updates on our website to allow feedback oil without deforestation, training these 2019 on our approach. farmers, helping them to improve yields Certification is and will remain an important sustainably and facilitating their access Report publically twice- We believe this process sets a rigorous tool, but it is only one of many to ensure to certification will be crucial. Partnering yearly on traceability, mill standard for several reasons. Firstly, if an our sourcing is sustainable, especially since with a supplier allows us to reach farmers lists and engagements issue is raised about one mill or plantation, sales volumes depend heavily on customer with whom we have no direct contact in conducted through the we assess the whole supplier to group demand. our palm operations. If this pilot project is LDC grievance process level. Secondly, if a decision is taken to successful, we plan to replicate it in other remove a supplier from our approved geographies. We will report on this project Target: supplier list, LDC will neither buy from, nor in our next report. 2019 sell to, that company. Thirdly, removal from our approved supplier list for palm-related grievances means that LDC no longer trades with that company for palm or any other products. Lastly, resuming trade with LDC is allowed only when suppliers prove they are addressing grievances.
3 IUCN, 2018
46 Louis Dreyfus Company Sustainability Report 2018 47 Fundamentals Pillars of sustainability Platform insights
Juice Targets 2018 Secure Rainforest Secure Rainforest Alliance Alliance certification certification and Sustainable LDC’s Juice Platform is the for 14 more farms Agriculture Initiative Platform third largest producer and Gold Grade recognition for merchandizer of juice worldwide, 29 farms overall and in 2018 celebrated 30 years Completion: Completion: in the business. 2018 2018 Status: Status: Completed Missed
From our 38 citrus farms in Brazil, through • Multiple internal Work Accident to our juice merchandizing activities in Prevention Week sessions, with Certified sustainable Chain of custody destination markets around the world, we over 1,400 participants Seeking Rainforest Alliance certification is have built sustainable solutions into our To ensure supply chain traceability from an excellent approach to meet responsible operations across the value chain. • Our annual, global Safety Day (see LDC farms certified by the Rainforest production goals in the juice value chain. page 19), with the theme “Our safety Alliance, our processing plants in In accordance with LDC’s collaborative is my priority”, and regular Safety Matão and Bebedouro, our Santos port Our operations are Rainforest Alliance approach, we work closely with many Dialogue meetings with industrial terminal, and our destination terminal CertifiedTM at two levels: farm-level stakeholders to address issues relating to: and farm teams to reinforce safety in Ghent, Belgium were all certified certification and chain of custody procedures and best practice between 2015 and 2016. certification, with strict standards covering: •• Decent work & economic development – creating jobs, training • Weekly farm safety reviews, raising • Effective planning and management our people and keeping them safe awareness among farm teams • Biodiversity conservation Biodiversity and and involving them in identifying A dedicated Group Administrator ensures • Natural resource conservation •• Deforestation, conversion & improvement opportunities that all certified sites meet Rainforest conservation • Improved livelihoods and human wellbeing biodiversity – preserving indigenous Alliance standards at all times. A wildlife around our facilities • Environment Week, Quality Week and comprehensive resource management Beyond certification, LDC takes great care Workers’ Week at our processing and plan is also in place to reduce GHG to preserve wildlife and biodiversity. As •• Responsible production & clean water logistic sites, recognizing successes emissions and water and energy previously reported, we are in the process consumption, manage solid waste and of creating Biodiversity Protection and – reducing water consumption and and raising awareness Farm-level minimizing the use of crop protection minimize the use of any potentially toxic Conservation Plans for each of our juice and phytosanitary products • Agricultural technical meetings, reaching crop protection products, in line with the farms, with detailed measures to: We met our target to certify 14 strict list of products permitted under the 500 employees on best practices in additional LDC citrus farms in 2018, Our 2018 Juice Sustainability Report agriculture, pest control, leadership scheme. We also leverage Rainforest • Control invasive species bringing the total to 29 overall, which Alliance frameworks to work with local • Reduce road traffic in the area outlines our efforts in detail, with several and Rainforest Alliance standards represents 80% of all the farms we highlights included here. communities, for instance by expanding • Conserve soil manage. We are now working to certify our environmental education program. • Educate employees • Not From Concentrate (NFC) field the remaining 9 farms. days and workshops, focused on • Monitor emissions from farm equipment Safety, quality and improving fruit quality through collective In recognition of this work, 22 farms were • Create ecological corridors between discussions among harvest, plant fruit validated in 2018 as Gold Grade according forest areas agricultural best practice Expansion of Rainforest Alliance reception and origination employees to the Sustainable Agriculture Initiative Certified™ farms in the last 5 years Platform’s (SAI Platform) standards. This 29 farms now have plans in place, with Employing approximately 8,000 people at means they have attained the highest approximately 9,100 hectares marked peak season, primarily in Brazil, involves a We also continue to operate our Programa RFA SAI Platform standard using its Farm for conservation. 80% of this land is massive commitment to training in order to Compartilhar to share our know-how 29 Total Sustainability Assessment evaluation tool, designated for medium or advanced run our operations as safely and efficiently with external partners and third party fruit 2018 15 14 which creates a single, global standard conservation, which entails great benefits as possible. suppliers, including training on LDC policies and sustainable production methods. 120 2017 11 4 based on multiple sustainability schemes. for wildlife, such as feeding and breeding While we missed our target to achieve areas for animals. We are in the process of In 2018, the Juice Platform delivered over people were trained in 2018, including 78 2016 5 6 Gold Grade at 29 farms, the remaining developing the remaining plans. 1,600 training sessions covering a range of suppliers who represent 70% of our fruit 2015 1 4 7 attained Silver, which remains a good safety, quality and agricultural best practice supply from third parties. achievement. We have renewed our target topics. These included: 2013/14 1 2019 and beyond We also run an environmental education to achieve Gold in 2019. • 370 sessions for over 3,100 program that brings local schoolchildren, Over the next year, we will examine next employees on our Agricultural more than 1,200 in 2018, to visit our farms, steps for Rainforest Alliance certification Quality Management System with training, farm tours and seedling and biodiversity plans for the farms that planting activities organized for them. do not yet have them, and have a goal • 169 training sessions for 1,239 to reach SAI Platform Gold Grade at employees to fully implement our seven farms. Industrial Quality Management System at our sites
48 Louis Dreyfus Company Sustainability Report 2018 49 Fundamentals Pillars of sustainability Platform insights
Coffee Targets 2018 New Target Increase the volume Set and publish Set and publish of certified coffee we targets for our targets for our Coffee generates incomes for sell to 17% responsible sourcing responsible sourcing millions of people. Many of them are program program smallholder farmers in remote rural areas, who produce more than 70% Completion: Completion: of global exports amounting to over 2020 2018 US$20 billion annually.1 Status: Status: Completion: Removed Amended 2019
Owing to the reality of climate change Our responsible coffee sourcing program effects, however, production is becoming takes a holistic approach with three Stream 2: Supporting Stream 3: Sourcing more difficult for farmers to the extent that complementary streams: farmers through projects responsibly grown coffee it may be below current levels by 2050.2 1 Boosting production of certified and In order to make global supply more Sourcing responsibly grown coffee is As a leading merchant of green coffee, we verified coffee sustainable, we need to reach more a natural continuation of our first two are well placed to help smallholder farmers 2 Supporting coffee farmers through farmers than we can if we focus streams. We want all our coffee to be address the challenges they face, and projects tackling specific local issues exclusively on certification. Our projects traceably and responsibly sourced. By make their production more sustainable 3 Sourcing responsibly from farmers who working directly with farmers in the field, seeking to source certified or verified and profitable. This contributes to achieving adopt environmentally, economically such as those in Vietnam (see below) coffee, and supporting smallholder SDGs on: and socially sustainable practices, and East Africa (see page 41), allow us farmers directly, we encourage sustainable irrespective of verification or certification to extend our reach to farmers for whom practices throughout the value chain and •• Economic development certification may not be accessible. therefore build up the supply of responsibly •• Alleviating poverty Aiming to be as transparent as possible produced coffee. •• Protecting life on land about this approach, we published our first •• Climate change Coffee Sustainability Report in 2018 with Launched in 2015, our Supplier Code of details on our work in this area. The report Conduct is the key driver of this work Merchants in LDC’s position who source is available on our website, and we have stream, covering human rights, health from thousands of smallholders, often included an overview in this chapter. Promoting sustainable & safety, environmental and business through numerous intermediaries, have land management in integrity issues (such as anti-bribery complex supply chains and face increasing measures). Farmers are expected to demand for traceable, responsibly- Stream 1: Certified and Vietnam commit to improve their practices in these produced coffee from end consumers. verified coffee respects and, from the beginning of 2019, LDC has partnered with the Sustainable we have introduced measures to create And with multiple certification schemes Despite the challenges posed by the Trade Initiative (IDH), Jacobs Douwe ”We have seen so much specific, corrective action plans where a available, roasters treat responsible proliferation of certification schemes, they Egberts (JDE) and Syngenta since 2016, improvement since the supplier is found to have breached the sourcing as a must, meaning the market is remain one of the most powerful indicators through the Initiative for Sustainable training program started. Code of Conduct. unwilling to pay a premium for certification. of sustainability in the coffee industry, in Landscape Approach (ISLA) in Lam Dong, The impact of climate response to increasing consumer demand Central Highlands, Vietnam. Sustainability and traceability are therefore particularly among millennials in North change will compel farmers Looking ahead prerequisites to operate in coffee. America and Western Europe. Between 2016 and 2018, the initiative to adopt agricultural trained 2,500 farmers to adapt to climate In 2019 we will focus on building up practices more in line with our sustainable sourcing program and Certified and verified sustainable coffee change, helping to make them more Responsible sourcing at complementary projects to support therefore remain a focus for a significant resilient, productive and environmentally international standards. LDC smallholder farmers. We have amended portion of our sourcing. At the same time, sustainable. Its success has led the is committed to helping LDC: a holistic approach our target to publish specific, time-bound owing to the shift of focus for the industry partnership to extend the program until farmers achieve this positive targets for our responsible sourcing Guided by its purpose of fair and outlined above and to the headway we 2021. The aim is to reach a further 3,000 program, realizing that we are too early in sustainable value creation, LDC chooses are making in our other two streams of farmers who produce approximately development.” the process to launch the program as a to go beyond certification in approaching work, we have decided to discontinue 18,000 tons of coffee annually from 4,800 LDC Senior Coffee Agronomist formalized system. We now aim to establish these complex issues, by working directly our formal sales targets for certified and hectares of land in the country’s Đák Lák, Tin Nguyen, who now works on this specific targets by the end of 2019. with smallholder farmers. By means of verified coffee. Đák Nông and Gia Lai provinces. project in Đák Lák, where he grew up initiatives addressing specific local issues, on a coffee farm. we aim to increase their income and Covering topics such as soil regeneration, productivity through sustainable practices. irrigation, intercropping for biodiversity, growing trees to shade coffee plants and minimizing pesticide use, the program uses demonstration plots that allow farmers to see the benefits for themselves, with 30 such plots already established to date. 1 Hivos (2018), Coffee Barometer 2018 (citing Oxfam (2002), Mugged. Poverty in your coffee cup) 2 World Coffee Research (2017), Annual Report 2017, Creating the Future of Coffee
50 Louis Dreyfus Company Sustainability Report 2018 51 Fundamentals Pillars of sustainability Platform insights
Cotton Targets 2018 New Targets Buy 25% more Purchase 125% Increase our Increase Train 10,000 Train 100,000 Increase Increase Purchase Better Cotton year- more Better BCI Kazakhstan our BCI farmers in farmers in Better Cotton Better Cotton 50% more As a natural fiber, cotton has significant on-year (using 2013 Cotton than in partnership to Kazakhstan Maharashtra, Zambia purchased purchased Better Cotton sustainability advantages over synthetic as a baseline) 2013 700 farmers partnership India compared to over previous than in 2018 alternatives like polyester, and can be to 700 2018 by 10% year by 10% (using 2018 promoted as a responsible way to Completion: Completion: Completion: farmers using 2018 as as a baseline) a baseline clothe the world’s growing population. 2018 2018 2019 Cotton supply chains, however, are not Status: Status: Status: Target: Target: Target: Target: Target: Target: without challenges. Completed Completed In progress 2019 2019 2020 2019 2020-2023 2023
Leveraging LDC’s leading industry position, In 2018, we exceeded our one- and five-year we work to address a number of these, targets for purchasing BCI-certified cotton Reaching 10,000 farmers Renewed connections in 2019 and beyond including those relating to SDGs on: by a wide margin, through a massive leap in India Zambia We are now refreshing our targets for the in purchases from US origins and a steady next five years. Our work with BCI will •• Decent work and economic upward trajectory in other areas. In 2018, we partnered with the Better In 2013, we reported with great optimism continue and we have new targets for development – improving working Cotton Growth and Innovation Fund, on a project that our ginning joint venture purchasing BCI-certified cotton, as well as conditions and productivity, The leap in US purchases is the result of funded by the Sustainable Trade Initiative in Zambia had started in partnership with country-specific targets for Kazakhstan, particularly at farm level promotional efforts in 2017 to show brands (IDH), and Indian cotton ginner Puneet CMiA, and which subsequently ran into India and Zambia. and retailers first hand the excellent work Enterprises to share sustainable agricultural difficulties. •• Human rights and gender equality – that many US farmers do. As we had hoped, practices with 10,000 smallholder cotton eradicating child and forced labor, and increased demand for Better Cotton products farmers in Maharashtra, India. That project received new life in 2018, improving the position of women in allowed us to increase our own purchases. as we took 100% control of the local smallholder farming communities The aim is to help these farmers tackle ginning operation, with 5 gins and 90,576 some of the social, economic and climate- smallholder farm suppliers, and reopened Partnering BCI •• Responsible production and water Addressing labor issues related challenges they face, such as the local partnership with CMiA. scarcity – helping farmers cut back in Uzbekistan and Burkina gender inequality, dependence on credit in Kazakhstan water and chemical usage and unpredictable weather conditions. Funded by Cotton Expert House Africa, Faso and learning from past challenges, the LDC has been the implementing Given these issues mostly arise in Halfway through the project, many new project will train 100,000 farmers on partner for BCI in Kazakhstan since agriculture, a stage of the supply chain that We are pleased to report on the excellent participants have already experienced the agricultural best practice over the next 2016. The aim is to increase the we do not directly manage, we partner with results of the ILO’s work with the Uzbek benefits. Cost of cultivation has decreased 3 years, aiming to help them improve volume of BCI cotton produced and other actors and experts to address them, government to eliminate child labor from by 30 to 35% on average among their livelihoods while reducing their raise the origin’s sustainability profile particularly the Better Cotton Initiative (BCI), cotton farming activities in the country, participants, and the quality of cotton environmental impact. We have already with spinners around the world. the International Labour Organization (ILO) supported by LDC and other ACME harvested has also increased, with the reached almost 50,000 farmers to date. and the Association of Cotton Merchants in members over the last five years (see prospect of better prices on the horizon. We began with four agronomists Europe (ACME). page 31). After the 2018 harvest, the ILO Alongside this formal project, LDC is dedicated to the project, working reported that child labor is no longer a By March 2019, we expect to have trained looking to develop additional programs to with farmers in the southern region concern in Uzbekistan, though they will all 10,000 farmers in techniques such as help communities around our operations. of Makhtaaral, and with three years Advancing responsible continue to monitor the situation. intercropping for biodiversity, in the proper For example, we have started to work of financial support from the German production use of fertilizers and pest control methods, with local schools to increase capacity, Development Agency (GIZ). We now That said, our attention is now drawn and on how women can participate fully teach parents about the importance of employ eight dedicated agronomists Promoting the BCI’s comprehensive to concerns about child labor in Burkina in farming. attendance and move communities and managed to reach 334 farmers sustainability standards, working with them Faso. Although Cotton Made in Africa away from relying on child labor. Other by the end of 2018. on local projects and purchasing more (CMiA) certifies all the cotton we originate We hope to report on the successful efforts include: BCI-certified cotton are the main ways in from the country, and while we support completion of this initiative next year. The project helps farmers to apply which we influence production methods programs that train local farmers to avoid • Supporting borehole drilling for clean BCI principles, entitling them to and water usage, since we originate cotton involving children in hazardous work, we water and constructing latrines certification, and then monitors from traders and ginners at origin, and only will also investigate how best to work with • Helping members of women’s clubs compliance through audits. In 2018, in Zambia from thousands of smallholders our suppliers and the ILO to that end. with start-up capital for their new, over 6,000 tons of BCI-certified who supply the gins we operate there. income-generating ideas seed cotton was produced in the • Educating farmers on the importance region, more than double the volume +140 % of insurance, in case of weather events produced in 2017. Purchases of BCI cotton 2015-2018 or pest infestations BCI cotton purchased (MT) Despite the mandatory end to GIZ’s over 2017 three-year funding, LDC continues to +824% over 2013 2018 212,528 drive the project forward and we are 2017 88,449 optimistic that we will succeed in bringing the targeted total number 2016 72,658 of 700 farmers on board by the end 2015 91,614 of 2019.
52 Louis Dreyfus Company Sustainability Report 2018 53 Fundamentals Pillars of sustainability Platform insights
Soybeans Targets 2018 Ensure all LDC suppliers Launch FEFAC- Train all relevant LDC Communicate our new in Brazil are registered approved certification employees on our new soy policy to all major Soybeans are the world’s most in CAR (Brazilian Rural scheme soy policy suppliers efficient source of protein per hectare1 Environmental Registry) and an important source of animal feed, biofuel and food products for Completion: Completion: Completion: Completion: human consumption. 2018 2018 2018 2018 Status: Status: Status: Status: Amended Completed Completed Amended
Production of soy has grown tenfold in Traceability being fundamental to these the last 50 years2 and demand is expected Soy Sustainability Policy Progress in Brazil activities, in 2019 we aim to trace 100% to continue increasing rapidly, given Reporting through of the soy we originate in Brazil to farm As mentioned in last year’s Sustainability Beyond training employees and publicizing predictions of rising global consumption level. Since this wider traceability work Report, we launched LDC’s global Soy the SCF our new policy among suppliers, LDC of meat and food overall. Yet it is crucial goes beyond how we were expecting to Sustainability Policy in 2018, reinforcing engaged in several new projects in the that this demand be met without resorting use suppliers’ CAR registration we have the company’s No Deforestation, No Peat, country in 2018. to deforestation or conversion of high amended that target to be included in No Exploitation commitment and focusing Our work with the SCF to conserve value ecosystems. this work. specifically on soy production. the Cerrado is outlined on page 31, In trying to motivate growers to preserve focusing on a process to trace and native vegetation areas that they are legally While our soy origination activities span Fair and sustainable development Our policy differs from others in the report on any soy procured, directly entitled to clear for soy farming, we have North and South America, the main land Environmental impact studies and licensing industry in its intention to engage and or indirectly, from the Cerrado, identified areas of land that are presently conversion issues arise in relation to are at the heart of LDC’s major project to influence all value chain actors to prevent particularly in 25 municipalities degraded or used for pasture to encourage soy purchased from Brazil, Argentina develop new export routes in northern the financing of, or participation in, the defined as high-risk areas. expansion of soy production there, and will and Paraguay. Brazil, along the Tapajós, Amazon and Pará conversion of native vegetation in areas look to set up credit lines to facilitate this rivers. Our own studies lasted two years, deemed to be of high ecological value, As part of this, LDC will publish the in 2019. Particular concerns involve minimizing covering impacts on communities, soil, air, such as the Cerrado biome. following figures twice a year starting damage to richly biodiverse areas such water, flora and fauna, and we now await in 2019: Alongside the SCF’s work (see left), as the Cerrado, Gran Chaco and Amazon the final stage of government approvals, In 2018, we communicated our policy to we have continued to participate in biomes. To avoid further deforestation and which comprises a year of analysis by major suppliers in the main municipalities • Percentage of soy sourced from the Cerrado Working Group – a multi- restrict soybean cultivation to land that has their experts. where we originate. This process will the Cerrado stakeholder group whose mission is to already been cleared, it is crucial that all continue in 2019, and has been integrated • Percentage of soy sourced from eliminate conversion of native vegetation soy value chain operators work together Creating economic development and into our workstream on supply chain the 25 municipalities identified as in that region in the shortest timeframe to source only from appropriate areas. positive local community impacts is also mapping and financial incentive creation. high risk possible, reconciling social, economic and essential, and as the project will introduce The original target for communicating the • Percentage of direct and indirect environmental interests. LDC therefore works with a range new vessels and increase river traffic, we policy to all suppliers has therefore been purchases from those 25 of stakeholders towards responsible want to minimize risk to local communities amended to reflect the need to focus on municipalities We also remained active in Grupo consumption and production (SDG 12) who have long used the river for their own municipalities defined as having a high risk de Trabalho da Soja (the Soy Working goals to: transport. Accordingly, we have already set of deforestation. The SCF will also publish the project Group), which focuses on implementing up an educational program on navigational parameters, including the criteria the moratorium on growing soy in the •• Prevent deforestation and conversion safety in partnership with the Brazilian Targets for 2019 connected to for what constitutes a “high risk” Amazon by preventing the trade of of land with high conservation value Navy, and distributed lifejackets, reflective implementing the new policy include: municipality, and leading NGO soybeans cultivated on areas deforested tape and guidance to local owners of Proforest will oversee the whole since 2008. LDC has been a signatory •• Safeguard water sources and small vessels. • Incentivizing producers to preserve areas process and make recommendations to Brazil’s Soy Moratorium since 2006. biodiversity of native vegetation, even if they are for any improvements. Certification in Brazil legally entitled to clear it Similarly, we continued to take part in •• Drive more sustainable soy 2018 saw the successful launch of LDC’s Associação Brasileira da Indústria de Óleos production across the value own Sustainable Agriculture certification • Tackling land use challenges in the Vegetais (ABIOVE), a group that brings chain globally scheme in Brazil, fully approved by the Cerrado through the World Business together oilseed processors and merchants International Trade Centre as meeting all Council for Sustainable Development’s and monitors their implementation of FEFAC (European Feed Manufacturers’ (WBCSD) Soft Commodities Forum anti-deforestation and conversion goals, Association) certification standards, including (SCF) (see box right) and the Cerrado including the Soy Moratorium and Cerrado those relating to High Conservation Value Working Group Working Group. areas. As a next step, in 2019 we will begin working with farmers to build a certified • Mapping soy supply chains to farm-level, As part of these efforts, we contributed supply chain thereby linking our sustainability and monitoring sourcing activities across to the launch of Agroideal, a free online, ambitions with customer requirements. Brazil and Argentina intelligence system that helps industry operators make informed decisions • Sourcing certified sustainable soy, where and territorial assessments relating to possible and in line with demand investments in soy. 1 European Soy Monitor, 2019 2 WWF, The Growth of Soy, Impacts and Solutions, 2014
54 Louis Dreyfus Company Sustainability Report 2018 55 Soy continued Fundamentals Pillars of sustainability Platform insights
Argentina
Certified Sustainable Biodiesel (KMT)
2018 ISCC 330 2017 2BSvs 415 EPA 213 2016 390 2015 130 New Targets Certification in Argentina Paraguay 2014 60 Progress in Argentina Over 50% of the soybeans we originated Progress in Paraguay from Argentina in 2018 were 2BSvs Report Brazilian soy As part of a detailed supply chain mapping Although Paraguay represents a smaller certified for EU biofuel sales. As import Sustainable Soybeans (KMT) origination figures twice Sustainable Soybeans (KMT) and risk assessment exercise in the proportion of our soy activities, and in duties imposed by the US government on SCF platform municipalities from which LDC sources some cases raises a different set of made EPA (Environmental Protection 2018 66,306 2018 2BSvs 1,483 soybeans directly from farmers in the issues, we have worked closely with Agency) certified biodiesel from Argentina Target: country, we identified: 2017 80,649 other operators in the sector to promote 2017 2BSvs 994 EPA 1,145 financially unattractive to customers, we 2019 2016 86,781 sustainable practices among local ceased selling it in 2017. Although we 2016 2,000 • Native forest in each municipality businesses and are now exploring remain one of the largest exporters of 2015 72,445 2015 780 • Any record of recent deforestation how to encourage our soy suppliers Launch a long-term credit soybean biodiesel from Argentina, our total • Legal categorization of the land 2014 3,000 to participate in a certification scheme. financing facility that certified volumes are lower than in past according to the Argentinian Forest Code incentivizes expansion Certified Farms years (see graph left). to existing pasture and Certified Farms Exploration started with LDC joining The results of this exercise showed that the Paraguay United Nations (PNUD) degraded land Aiming to sell more certified soy in the 2018 2BSvs 5,564 the risk level for our Argentina supply chain Green Commodities Program, to give a future, in 2018 we analyzed our supply chain 2018 163 is very low. merchant’s perspective on industry issues Target: 2017 2BSvs 4,200 EPA 5,800 against the FEFAC-approved Sustainable 2017 160 and barriers to sustainable development, 2019 2016 5,082 Feed Standard (SFS) and will now seek Looking beyond our existing supply chain, 2016 126 such as the lack of clarity on land certification to begin sales of certified 2015 1,390 and keen to ensure the sustainability of ownership in many rural areas. Trace 100% of direct soybean meal for the 2019-20 harvest. 2015 95 2014 580 future purchases, in 2018 we contributed purchases in Brazil to 2014 to the Agroideal multi-stakeholder group 3 Participation in this program may also farm level Alongside certification and biodiesel that is identifying areas where expanding provide opportunities to promote efforts, we have worked with a wide group Certified Hectares (Kha) soy farming is suitable in Argentina, sustainable practices among farming Target: of stakeholders to set a default greenhouse Certified Hectares (Kha) in order to avoid any deforestation or cooperatives that engage with PNUD, 2019 gas (GHG) emission value for Argentinian 2018 2BSvs 1,780 environmental damage. accelerating progress across the country. soybean cultivation, in order to make GHG 2018 55,200 2017 3,500 Map areas suitable for savings from biodiesel clear to the market. 2017 54,694 2016 2,900 We are also looking to conduct proprietary soy farming expansion mapping of other areas of the country, 2016 28,693 2019 and beyond in northern Argentina to 2015 1,370 particularly in the north, to identify 2015 21,009 avoid deforestation and 2014 660 opportunities to convert existing pastureland Over the next few years, we will continue 2014 5,000 environmental damage and subsequently incentivize this approach, to build on LDC’s global Soy Sustainability Policy through mapping, traceability and similar to our efforts in Brazil. Target: Warehouses (own) certification efforts, as well as farmer 2019 awareness and incentive schemes, to 2018 2BSvs 11 protect land of high conservation value. Communicate our soy 2017 2BSvs 10 EPA 10 In 2019 we will certify farmers and secure policy to all major suppliers 2016 9 volumes through LDC’s new Sustainable in high risk municipalities 2015 4 Agriculture certification scheme in Brazil, 2014 4 and launch a long-term credit financing Target: facility. We will also take several steps 2019 to improve our mapping and monitoring Warehouses (third party) capabilities across Brazil and Argentina, and start reporting Brazilian sourcing figures 2018 delivered 2BSvs 12 23 through the SCF platform to help protect 2017 2BSvs 1 EPA 19 high-risk areas. 2016 15 2015 1 2014 0
56 Louis Dreyfus Company Sustainability Report 2018 57 Fundamentals Pillars of sustainability Platform insights
Freight Targets 2018 Publish 2018 Complete study Complete study Contribute to SSI emissions on chartering on chartering study on ships of Owing to high volumes of traded resulting from wind propelled dual LNG/gasoil the future goods travelling by sea, shipping LDC freight vessels propelled vessels presents important pollution activity issues. Completion: Completion: Completion: Completion: 2019 2018 2018 2018 Status: Status: Status: Status: Completed Amended Amended Amended
Exhaust emissions from marine diesel engines account for a large majority of Advancing industry goals LDC’s freight impact the transport sector’s sulfur oxide (SO ) x We support the International Maritime To provide transparency on how we are emissions, and for a significant portion of Organization (IMO) in taking bold steps to working toward IMO goals, last year we nitrogen oxide (NOx) and complex particulate 799 56.3 reduce permissible SO emissions from set ourselves the goal to report on our x ships chartered, 8.1 million tons of cargo matter releases, harmful to human health 3.5% m/m (mass per mass) to 0.5% m/m annual emissions data. average age of and the environment. Marine carbon of which 700 bulk shipped, of which by January 2020 (with some special local vessel in years dioxide (CO ) emissions remain the most carriers & 52.8 by bulk carrier 2 zones capped at 0.1%), and to making NO Our freight activity in 2018 and its challenging issue, representing around 2% x 99 tankers & 3.6 by tanker reduction technology compulsory on board environmental profile breaks down of global greenhouse gas emissions.1 certain newly built vessels. as shown here to the right. Although ocean freight remains the most We are committed to complying with these LDC’s chartered fleet is on average 8.1 environmentally friendly way to move regulations and are also actively taking steps years old, compared to a global average cargo at scale, there is room to make a to help the industry meet IMO goals to fleet age of 9.8 and 12.33 years for bulk and vast difference if leading companies like reduce CO emissions intensity per ton-mile tankers respectively.7 We strive to charter LDC take responsibility for driving positive 2 by 40% by 2030, and by 70% by 2050. younger, more energy-efficient vessels. 76% 5.14 72% change ahead of long-term public targets. of time charted average EVDI™6 of vessels under In parallel, we continue to work with top Assessing our chartered fleet against the vessels with A-D per vessel 5 EVDI As one of the world’s largest chartering tier ship owners, shipyards, equipment standard European energy efficiency scale, rating entities today, we are committed makers and weather routing companies using the Rightship GHG emission-rating to making every effort to operate to optimize our fleet through better tool, we can see that over three quarters responsibly, and to help create a more technology, including: of our fleet rates in the A-D range. This is sustainable shipping industry, by helping a slight improvement from last year. to achieve SDGs covering: • Hulls with less resistance and special paint Overall emissions declined by 5% year-on- •• Climate change – reducing • More efficient propellers and rudders year in 2018, to an average of 5.1 grams of greenhouse gas and other emissions Fuel Oil Consumption under GHG rating of vessels 20185 • Reducing adverse weather days CO2/ton-mile, through efforts to charter a Time Chartered vessels (MT) more energy-efficient fleet and employ the units •• Decent work – providing safe, healthy Throughout 2018, LDC increasingly relied most efficient vessels on longer voyages, 2018 working environments and promoting GHG A 5 on innovative sensors and satellite tracking and due also to covering less nautical the rights of those working on ships Bulker IFO2 581,282 data to optimize voyage duration, reducing mileage. GHG B 104 fuel consumption at sea, and we are Bulker MGO3 26,283 •• Peace, justice and strong institutions GHG C 138 also collaborating with the IMO’s Global Looking at the LDC fleet as a whole, – proactively contributing to the Tanker IFO 57,915 Industry Alliance roundtable on just-in-time 62% of vessels used had an EVDI energy GHG D 365 responsible governance of our oceans Tanker MGO 1,144 operation of ships to help cut down fuel efficiency rating less than 5 grams of GHG E 140 consumption at port. CO /ton-mile.8 2 GHG F 45 Calculated total CO 2 2,078,6474 LDC can have the greatest impact on the In 2019, we will commence live monitoring emissions (tons of CO2) GHG G 2 vessels we operate under time charter, of our emissions rather than relying on where we have more operational control. In Rightship’s EVDI projections for the fleet.
2018, we invested in SOx and NOx emission This more accurate data will enable us reduction equipment on some of these to set ambitious reduction targets, with ships that are currently under construction. confidence that we can be truly transparent about our performance. 2 IFO is heavy fuel oil ISO 8217 grade RME, with a maximum of 3.5% sulfur content and 3.1144 tons of CO emitted +6m 2 Importantly, our collaboration with nautical miles per ton of fuel burned partners through the Sustainable Shipping 3 MGO is Marine Gasoil, with a maximum of 0.1% sulfur content and 3.2060 tons of CO2 emitted per ton of fuel travelled Initiative (SSI) is ongoing, particularly on burned. MGO is used in Sulfur Emissions Control Areas (SECAs), which are geographical areas with stricter controls 1 Source: International Energy Agency, Commentary: on a range of airborne emissions. International Maritime Organization agrees to first long- de-carbonization goals and the responsible 4 Figures for this graph relate only to time charter vessels, i.e. where LDC has greater operational control term plan to curb emissions (April, 13th, 2018, https:// recycling of ships. 5 Source of ratings: Rightship rating of LDC chartered fleet www.iea.org/newsroom/news/2018/april/commentary- 6 EVDI is Rightship’s proprietary rating measuring a ship’s CO2 emissions per ton nautical mile imo-agrees-to-first-long-term-plan-to-curb-shipping- 7 Source: Clarksons, April 2019 emissions.html accessed April 2019) 8 See footnote 5 above
58 Louis Dreyfus Company Sustainability Report 2018 59 Freight continued
Studies toward more New Targets sustainable shipping Complete research on how In 2018, we completed most of the work LDC can make an impact on our study on chartering wind-propelled on human rights at sea vessels. Although we are still validating certain assumptions on saving sea days Target: with external input we expect the study 2019 to be completed in 2019, and see an opportunity to charter such vessels in the Reduce CO2 emissions new fuel environment after 2020. from LDC’s fleet by 5% per ton-mile (comparing 2019 Our study on chartering dual LNG/gasoil actual emissions to 2018 propelled vessels is also ongoing. Work notional data) to date has given us greater confidence in infrastructure developments for bunkering Target: LNG and the design of new tanks on 2019 certain large ships. We will continue to explore remaining issues and expect to Set target for LDC fleet complete this study in 2019 as well. emissions reduction per ton-mile for 2022 Alongside our own studies, we are participating in the Sustainable Shipping Target: Louis Dreyfus Company B.V. (the “company”) has made every effort to ensure accuracy of the information contained in Initiative’s biofuel working group. With this 2019 this report. However, the company cannot guarantee the completeness and accuracy of all information contained herein. group’s study due to be published in 2019, The copyright to this report and its content are, except where otherwise indicated, held by the company. Unauthorized use, we have amended our target accordingly. reproduction or conversion is strictly prohibited. Complete study on chartering wind propelled © Produced by Reluctantly Brave (London, UK) 2019 and beyond vessels © All photos Copyright Louis Dreyfus Company unless otherwise indicated. All rights reserved. As we start to monitor actual emissions Target: with granularity, we will compare our 2019 2019 data to EVDI-based notional efficiency data Credit for photography that illustrates this report: from 2018, targeting a 5% reduction while Complete study on recognizing that the comparison will be © Photographers: Raphael Olivier / Melina Gianelli / Rafael Tomazi / Foto Susi / The Edge / Inter Aide / PUR projet / chartering dual LNG/gasoil imperfect. We will also set accurate and Marcio Bruno / Marc-Olivier Giguière propelled vessels ambitious reduction targets for 2022. © Shutterstock: Feng Yu / Midiwaves / benjaminec / STILLFX / Enrico01 / igostevanovic / diogoppr / Dado Photos / Acknowledging that this challenging work Target: happystock / KYtan / aaltair / Wong Hock weng / Tristan tan / sima / Fotokostic on environmental goals should not detract 2019 from equally important concerns regarding @ iStockGetty: pushlama human rights at sea, we shall complete Contribute to SSI study on research on how LDC can make an impact ships of the future ® ® ® in this area and report on our findings in Printed by a CarbonNeutral print company in the UK on 100% recycled paper using its alcolfree and pureprint environmental next year’s report. Target: printing technology and vegetable inks throughout. Both the manufacturing paper mill and the print company are registered to ® 2019 the Environmental Management System ISO 14001 and are Forest Stewardship Council (FSC) chain-of-custody certified.
60 Louis Dreyfus Company Louis Dreyfus Company B.V. Westblaak 92 3012 KM Rotterdam The Netherlands www.ldc.com