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Cargill 2014 Corporate Responsibility Report | 1 Operating Responsible Supply Chains

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Cargill 2014 Corporate Responsibility Report | 1 Operating Responsible Supply Chains 2014 Corporate Responsibility Report Delivering responsibly in the global food system Cargill is committed to operating responsibly across the agriculture, food, industrial and financial markets we serve as we pursue our goal of being the global leader in nourishing people. Our commitment to corporate responsibility has four pillars: conducting business with integrity, operating responsible supply chains, working to feed the world and enriching our communities. On the cover: Cargill works to strengthen cocoa -growing communities in Africa, Asia and South America, including increased access to education for the children of cocoa farmers in Ghana. Conducting Operating Business Responsible with Integrity Supply Chains Enriching Working to Our Feed the Communities World Delivering responsibly in the global food system All of us expect a lot from our global food system, as we should. We need it to provide safe, nutritious and affordable food for everyone, and we want confidence that food is grown, processed and distributed responsibly. It’s not surprising, then, that questions are being raised about the system’s ability to feed a growing global population, the health effects of today’s diets, the technologies used to grow and process food, and implications for human rights, animal welfare and the environment. The global food system is made up of an incredibly complex web of consumers, farmers, governments, food processors, food service and retail companies, and the transportation, trade and market infrastructure that helps store, move and price food on its way from farm to table. Diversity is also the system’s greatest strength, providing tremendous resilience and the ingenuity to discover the best solutions as we move toward a world that is not only more populous but more prosperous. Cargill is working with our partners in all of these areas to make the system better. We are privileged to contribute every day to the vital task of nourishing people. On behalf of our employees around the world, we are proud to share in this report some of the ways we are delivering responsibly in the global food system. Sincerely, Gregory R. Page David W. MacLennan Executive Chairman President and Chief Executive Officer Aug. 20, 2014 Cargill 2014 Corporate Responsibility Report | 1 Operating responsible supply chains We believe the supply chains that support the global food system must respect people and human rights; produce safe and wholesome food; treat animals humanely; promote responsible agricultural practices; and reduce environmental impact, including protecting high- conservation value land and conserving scarce resources. Corporate responsibility in action We promote the best, most We are committed to We employ innovative We treat our employees with responsible agricultural safeguarding the whole­ approaches to conserve dignity and respect; provide practices, including someness and integrity resources, use renewable safe, secure and healthy work working closely with of the food we produce raw materials and environments; and strive to farmers to increase yields and sell. reduce impacts to help protect human rights across sustainably and treat preserve and protect the our supply chains. animals humanely. environment. Boosting agricultural productivity Collaborating to meet sustainable and conservation sourcing requirements 100+ Around the world, Cargill works with In Brazil, our work with TNC has helped In Germany, 12 of our farmers to increase yields while reducing farmers grow soy more sustainably since sites earned ISO50001 energy management environmental impact. In Canada, Cargill 2004. We have helped map 11 million systems certification helps farmers grow more canola per acre; hectares of private Brazilian land in Mato – the first of Cargill’s we have increased research and develop­ Grosso and Pará using satellite-based locations to do so – ment spending by 45 percent since 2007 to monitoring that enables precise evalua­ demonstrating clear processes for improv­ boost yields and disease resistance in our tion of producers’ compliance with the ® ing energy efficiency VICTORY hybrid canola, allowing farmers Brazilian Forest Code, helping prevent to reduce associated to increase production levels by 12 per­ deforestation. Now that approach is being greenhouse gases, cent. In the United States, our NextField™ used as part of the Brazilian government’s costs and environmental precision agriculture system uses satel­ rural environmental registry. In Argentina impacts. These sites join more than 100 lite images and soil sampling to collect and Paraguay, we help farmers adopt and Cargill locations around data on 100 variables that affect yields verify sustainable production practices. the world with exist­ for a specific field. Farmers use the data Sustainable soy now accounts for 28 per­ ing certifications for to apply seed and crop nutrition precisely cent of the crop originated in Paraguay. We environmental and safety management systems. where needed to optimize performance, are working in northeastern China with The producing higher yields with less waste and Coca-Cola Company, the World Wildlife environmental impact. By 2020, Cargill will Fund, Songyuan municipal government and double the amount of NextField acreage smallholder farmers to improve corn pro­ to more than 1 million total acres. In 2014, duction, reduce waste, conserve water and we expanded our partnership with The optimize fertilizer use. Average yields on Nature Conservancy (TNC), including $1.4 20 demonstration farms have increased 20 million in support for its global agriculture percent compared to non-demonstration programs in Africa, Argentina, Brazil, China, farms. In 2013, more than 15,000 farm­ Colombia, Mexico and North America. ers participated; combined with favorable weather, yields were 39 percent higher than 2 | Cargill 2014 Corporate Responsibility Report Pursuing sustainable soy More than 80 people gathered in Brazil in 2013 as part of a “learning journey” hosted by Cargill to address challenges and identify solutions for improving soy sustainability. Participants from the food industry, governments, nonprofit groups and academia toured soy farms, discussed progress – including the significant reduction in deforestation rates in Brazil – and planned for future action. In Indonesia, Cargill’s PT Harapan Sawit Lestari palm plantation received RSPO certification in 2014, including smallholder farmers. Our PT Hindoli plantation was RSPO 100% certified in 2009. All Cargill-owned sows at company facilities will be moved from individual pens to group housing by the end of 2015. Cargill 2014 Corporate Responsibility Report | 3 the demonstration farmers’ past four-year stalls to group housing at our U.S. opera­ average and fertilizer efficiency improved tions in 2015, and all U.S. contract farms 34 percent. Our malt business is address­ raising Cargill-owned sows will convert to ing barley sustainability in Argentina and group housing by the end of 2017. Europe. In Argentina, we surveyed farmers Elevating cocoa yields and incomes about the long-term viability of malting bar­ Since launching the Cargill Cocoa Promise ley in the region; we are compiling results in 2012, we have made progress in improv­ and will use the insights to help improve the ing the livelihoods of farmers, their families crop’s sustainability. In Europe, we com­ and communities in Brazil, Cameroon, Côte pleted a similar assessment based on input d’Ivoire, Ghana, Indonesia and Vietnam. Promoting biodiversity from co-ops in several countries to better and traceability Global demand for cocoa is growing; to understand challenges and opportunities In Europe, Cargill is ensure a long-term cocoa supply, we have for meeting customer demand for certified increasing the sustain­ helped train more than 115,000 farmers, ability of our wheat and sustainable barley. corn supply chains by established nearly 2,550 Farmer Field helping farmers improve Reducing deforestation around Schools across six countries and distrib­ energy efficiency and fer­ palm plantations uted 25.3 million seedlings to promote farm tilizer use while enhancing Since 2013, Cargill has been working with development. Our activities are raising biodiversity. Using this The Forest Trust mapping our palm oil farmers’ incomes, including $25 million of approach, farmers in France and Hungary have supply chain. In Malaysia, 100 percent of premiums paid to farmer cooperatives for supplied 3,800 metric palm oil produced from Cargill refineries is certified sustainable cocoa, half of which tons of certified sustain­ traceable to the mill and as of June 2014, is paid directly to their farmer members. able corn that is traceable 80 percent is traceable to the oil palm More than 77,000 farmers and 342,000 back to the individual grower. In Hungary, we plantation and dealers. Now we are moving hectares of cocoa worldwide have been commissioned Szent ahead with mapping supplies from other certified sustainable. In Brazil, for example, István University to locations. As a member of the Roundtable the number of hectares independently study local biodiversity on Sustainable Palm Oil (RSPO), Cargill certified has increased to 3,231 hectares and prepare a guide for farmers promoting better is committed to building a traceable and from 1,520 hectares since last year. In Côte agricultural practices, transparent palm oil supply chain commit­ d’Ivoire, our Co-op Academy is combining such as improving soil ted to no deforestation of high conservation quality
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