REPORT 2015 SUSTAINABILITY OUR PROFILE

Louis Dreyfus Company is a leading FUNDAMENTALS 2 merchant and processor of agricultural CEO MESSAGE: SUSTENANCE IN A SUSTAINABLE FUTURE 2 goods, leveraging its global reach and SNAPSHOT 4 extensive asset network to deliver for OUR VALUES 6 OUR ROLE: THE INDUSTRY & THE WORLD 8 its customers around the world – safely,

responsibly and reliably. PILLARS OF SUSTAINABILITY 10 PEOPLE 12 Our diversified activities span the entire value chain from farm ENVIRONMENT 18 to fork, across a broad range of business lines (platforms). PARTNERS 24 Since 1851 our portfolio has grown to include Oilseeds, Grains, COMMUNITY 30 Rice, Freight, Finance, Coffee, Cotton, Sugar, Juice, Dairy, Fertilizers & Inputs and Metals. We help feed and clothe some 500 million people every year PLATFORMS’ INSIGHT 34 by originating, processing and transporting approximately PALM 36 81 million tons of commodities. In our efforts to help sustain a JUICE 38 growing global population we rely on our worldwide presence, responsible practices, sophisticated risk management and COFFEE 40 in-depth market knowledge. COTTON 42 The commitment of our employees is essential to those efforts, SOYBEANS 44 which is reflected in their ownership of approximately 10% of the Group. Our diversified approach generated US$55.7 billion in net sales supported by a US$3.9 billion asset base for the LOOKING AHEAD 46 year ended 31 December 2015.

Unless otherwise indicated, “Louis Dreyfus Company”, “LDC”, “Group”, “Louis Dreyfus Company Group” and related terms such as “our”,“we”, etc. used in this Sustainability Report mean the Louis Dreyfus Company B.V. Group.

1 FUNDAMENTALS

CEO MESSAGE: SUSTENANCE IN A SUSTAINABLE FUTURE

2015 has been a year of change for agribusiness and for Louis Dreyfus Company. We set a new 10-year strategy, and continued to adapt to challenging market conditions while ensuring compliance with a shifting regulatory environment. I am very pleased to be able to present a Sustainability Report that displays continuity – ongoing progress from our !rst standalone report in 2012 – despite the shifting dynamics of commodities markets. It gives me con!dence in our approach that our sustainability e"orts remain a constant commitment.

First, the increasing involvement of Most notably, we undertook a supply chain SUSTAINABILITY INTEGRITY platforms in sustainability programs that is POWERED mapping process on our palm operations AND OUR VISION TO DELIVER reflected in this report. Last year, for the BY PEOPLE with an external consultant. Their work has first time, 4 platforms had sections of the been invaluable and I thank them not only Our vision will be key to maintaining this As always, we acknowledge that we must Sustainability Report dedicated to their All our success depends entirely on our for delivering the results but also for their progress. The new vision, at the heart of back up our ambitious vision with actions. efforts. This year we add the soybean talented, dedicated people. I thank them enormous contribution to our learning. our recent rebranding, keeps sustainability We pride ourselves in our integrity – a operations of our Oilseeds Platform. for all of their efforts. More innovatively, we were one of the central to our business model: reputation built over more than 165 years. 43% Having 5 sizeable areas of our business More important than simply thanking participants in a world-leading global food It is crucial that we live up to our vision with so much to discuss is an excellent To work towards a safe and sustainable REDUCTION them, our business practices must support security game (see page 25). Food Chain and ethical standards if we are to retain IN GRAVITY start. I am sure we will keep adding future, contributing to the global and value them in their work. For example, Reaction has supported food security that reputation. OF ACCIDENTS platforms as sustainability becomes more effort of providing sustenance for our aim will always be to lead our industry efforts through modelling how the world and more deeply embedded across a growing population. This leads us to seek to embed in safety standards and results. This year responds to shocks to the food supply sustainability into every LDC person’s the company. we exceeded our targets on both the What has long been inherent in the LDC chain, for operators like LDC as well as work, at every level of the company. With incidence and the severity of injuries. way of doing business is at the forefront of Secondly, I am excited to reflect on for policymakers and NGOs. over 22,000 employees at peak season, the hard work done by our Industry how we understand our role in the world. We retain our goal to reach zero lost time I encourage you to read in detail on these that is a significant task. function to successfully pilot a potential The vision reinforces our commitment to accidents across all our assets, every year. projects, and many others in this report. company-wide approach to reducing the 4 pillars of our sustainability strategy: Our merchant role includes matching It is ambitious, but we will not be put off We always welcome feedback on our demand with sustainable supply. This energy consumption and greenhouse by the challenge. • community work as we seek to improve in partnership involves providing information along the gas emissions. They have demonstrated • people with all our stakeholders. supply chain, and we see this report as 24% that ingraining energy efficiency goals in • environment part of that process. REDUCTION people’s day-to-day jobs is both possible • partners LEARNING WITH IN FREQUENCY and effective. In the pilot in Asia they Much of this work requires granular OF ACCIDENTS reduced energy consumption by 10% STAKEHOLDERS focus on day-to-day operations. The on an annualized basis, benefiting both Working in partnership with others has management team and I support that work the planet and our bottom line. wholeheartedly. There are many people long been in the LDC DNA. We have and initiatives deserving praise, but I I look forward to reporting on the learned a great deal alongside partners Gonzalo Ramírez Martiarena would particularly like to highlight two. next phase of these developments. this year, in many different ways. Chief Executive Officer

2015 SUSTAINABILITY REPORT 2 Louis Dreyfus Company 3 FUNDAMENTALS SNAPSHOT 165 years of experience over a period of ceaseless global change

KEY FACTS THE VALUE CHAIN

A MATRIX AND Our strategic asset 5 12 WE ORIGINATE We own farms and share best portfolio spans the ORGANIZATION OF REGIONS PLATFORMS AND PRODUCE practice with farmers and producers worldwide. whole value chain.

WE PROCESS Platforms from our AND REFINE Value Chain and OPERATING OVER IN OVER Merchandizing

We control quality and segments skillfully use 10% 90% 22,000 supply products to our 100 APPROX. APPROX. assets at various stages PEOPLE EMPLOYED merchandizing network. COUNTRIES of the value chain to

EMPLOYEE OWNED BY THE WE STORE get the right product to OWNED LOUIS DREYFUS AND TRANSPORT the right location, at the GROUP AT PEAK SEASON right time, no matter

We efficiently manage how challenging the movements across the value chain. environment.

OVER WE RESEARCH 300 88 500m AND MERCHANDIZE ASSETS OFFICES ARE FED AND CLOTHED PEOPLE BY US EVERY YEAR All platforms and regions rely on this knowledge to guarantee responsive supply.

WE CUSTOMIZE AND DISTRIBUTE APPROX. 81million SHIPPED TO TONS OF COMMODITIES DESTINATION We supply all types of customers with products.

SUPPORTED BY A US$55.7BILLION US$3.9BILLION YEAR ENDED NET SALES 31 DECEMBER 2015 FIXED ASSET BASE

A DIVERSIFIED PORTFOLIO

OILSEEDS GRAINS JUICE FERTILIZERS FREIGHT COTTON SUGAR RICE COFFEE DAIRY FINANCE METALS & INPUTS

2015 SUSTAINABILITY REPORT 4 Louis Dreyfus Company 5 FUNDAMENTALS OUR VALUES

We share an uncompromising As a global company, we determination to achieve encourage respect for every excellence in everything we individual, promoting diversity undertake, delivering to the in every aspect of our business, best of our ability for all our and in all locations where we stakeholders. are present. We are committed to our Recognizing its business customers, placing them at the value, we encourage varied center of everything we do. approaches to problem-solving, and open and respectful We are committed to our communication between people, acknowledging and As a global leader in the employees from diverse cultural investing in them as our most agri-commodities industry, and professional backgrounds, Our growth and sustained valuable asset. we are aware of our and strive to build close ties performance are driven by responsibility to foster and relationships with local our entrepreneurial spirit; long-term stability and communities where we we support and empower growth, to do business are present. our people to take initiatives, with integrity, feeding create and innovate, while and clothing the world balancing this drive through sustainably. a sound approach to risk Determined to lead by management that calls for example, we stretch informed, measured and ourselves continuously, controlled decisions and learning from others and judgments. through questioning and feedback, and challenging ourselves to find better We are committed to our solutions. partners, working with them hand-in-hand to reap the collective rewards of responsible business practices. We are committed to the world around us, accepting our responsibility for contributing positively to our local communities in an ever- changing environment.

OUR VISION OUR MISSION To work towards a safe and sustainable future, To use our know-how and global reach to bring the contributing to the global effort of providing right product to the right location, at the right time. sustenance for a growing population.

2015 SUSTAINABILITY REPORT 6 Louis Dreyfus Company 7 FUNDAMENTALS

OUR ROLE: THE INDUSTRY & THE WORLD

Louis Dreyfus Company aims to be part of a sustainable answer to the challenge of feeding a growing population. What that involves can be obscure to many. We illustrate here some of the crucial questions the challenge raises.

the end of 2015 China’s corn stocks grew acquires the physical corn to ship, selling World corn trade is minimize risk and maximize reward. otherwise adequate supplies.4 In the early FORECASTING to nearly a year’s worth of annual use.2 back futures all the while to keep its book It is key to efficient markets. 1990’s, for instance, China experienced The current, revised USDA forecast is that neutral. The merchant can also make around 120 million tons food price inflation of over 20% per year CHALLENGES A merchant operating in this manner by 2021/22 China will be importing just 5 optional origin sales to protect themselves due largely to such hoarding behavior. a year can constantly employ research to Supply and demand conditions for million tons of corn annually.3 The market’s in case of scarcity in any particular re-evaluate strategy as reality unfolds. commodities change constantly, affecting view of China’s corn situation has been territory. We need to stay flexible in order Future uncertainty makes this flexibility, their prices. Research-based trading profoundly altered. Today’s concern is to better serve the changing demands of THE MERCHANT’S combined with intelligent investigation, operations are the most efficient the disposal of China’s corn surplus, our customers. vital to the sustainable day-to-day ROLE and sustainable way to match supply something unthinkable a few years ago. WORLD POPULATION and demand. distribution of resources. Merchants are essential to sustainable development of commodities flows. Our ADAPTABILITY Consider a world with producers and Changing conditions place huge combination of research, expertise and VOLATILITY consumers, but no merchants or investors. emphasis on accurate forecasting. CHALLENGES 2050 trading strategies are key to the efficient, There are only sellers and buyers; there Commodity forecasts are contingent on CHALLENGES It may be that after time passes, the buyer active, liquid markets the world needs. We is no ability to employ the risk-minimizing our understanding of the present. That Future uncertainty has massive knock- of the corn ceases to require the shipment. must rise to the challenge of performing strategy of trading on increments. That is transforms through time. There is an on effects. Commodities inherently have Business conditions change, after all. this role as intelligently and responsibly 9.2bn only possible with operators that both buy old saying: “To forecast well, forecast volatile prices as, unlike stocks or bonds, as possible. Adaptability is therefore imperative to and sell. often”. The problem is that reality is they produce no re-investable earnings revealed gradually, no matter how maintain efficiency and sustainability. nor an income stream to their owner. 2015 Without such operators, if a seller Clyde Davidson Merchants like LDC must be able to mark closely you watch. Ownership incurs costs. So commodities 7. 4 bn becomes absolutely convinced the price Global Head of Cross-Commodity our commitments to market, re-negotiate, are valued on expectations of their future of corn is going up, there is only one way Research For example, a few years ago people and move forward with commitments that worth. This constantly changes depending to profit from that conviction: to hoard thought that China would not be fit in the new market environment. able to meet growing demand for on forecasts of fundamentals. 1 USDA Agricultural Projections to 2023, United the corn, resulting in ever-rising prices as carbohydrates from their growing meat Sufficient counterparties within a liquid States Department of Agriculture, Office of the supplies are withheld from consumption As a result, commodity prices commonly Chief Economist, February 2014, p.43. trading environment are vital in allowing by the public. and livestock sector. In February 2014, have a trading range, in any one year, that the US Department of Agriculture (USDA) participants to clear commitments that no 2 “Analysis of Reserve Corn Stock Distribution and can be 50% or more of the average value Reserve Buying Progress”, in Chinese, China Grain From time to time various governments forecast1 that by 2021/22 China would be longer reflect market requirements. This for the year. and Oil Information Network, January 11, 2016. become convinced that trading is importing 18 million tons of corn annually. keeps the supply and demand chain clear. 3 inherently harmful. They go so far as to Considering world corn trade is around Hedging vastly facilitates risk management “USDA Agricultural Projections to 2025, United States So long as there is adequate liquidity in Department of Agriculture, Office of the exclude merchants, leaving the purchase 120 million tons a year, this would be a where prices are volatile. the markets, participants can buy and Chief Economist, February 2016, p.84. of crops from farmers to state-owned major development. A firm may sell corn without adequate sell whenever necessary to minimize 4 “Zhu Rongji’s Speech at Agricultural Conference”, entities who would then only sell to However, starting in 2013 the Chinese inventory to ship against the commitment exposure to the risky commodity asset. originally in Jiage Lilun Yu Shijian, October 20, consumers. In the past, the absence of 1994, translated in United States National Technical government decided to buy corn at prices by buying sufficient corn futures to This strategy of trading on increments Information Service, Foreign Broadcast Information trading activities has led to severe food far in excess of international values. By negate the additional requirement. It then is the natural result of a firm’s instinct to Service – China, January 10, 1995, pp. 68-72. price inflation despite the presence of

2015 SUSTAINABILITY REPORT 8 Louis Dreyfus Company 9 PILLARS OF SUSTAINABILITY

PILLARS OF SUSTAINABILITY • People • Environment • Partners • Community

2015 SUSTAINABILITY REPORT 10 Louis Dreyfus Company 11 PEOPLE PEOPLE SAFETY CONSTANTLY GLOBAL FREQUENCY AND GRAVITY INDEXES IMPROVING 18 month average The Frequency Index expresses the relation SAFETY 2.0 between the number of Our basic commitment is to the safety of workplace injuries requiring all employees and anyone who visits any 1.5 medical attention and hours of our sites. We have a strong health and worked. The ratio expresses the number of employees in safety record, which we continually look 1.0 to build on and improve. every 100 that experienced an injury requiring medical At the heart of this commitment is reducing 0.5 attention during the year. the frequency of accidents by 20% year- The Gravity Index is a subset on-year. With a vision of a safe future, our 0.0 of the Frequency Index and Jul Oct Jan Apr Aug long-term goal is to reduce all accidents Aug Sep Nov Dec Feb Mar May Jun Jul Sep Oct Nov Dec resulting in a person having lost time at shows the relation between work due to injury to zero. the number of workplace 2014 2015 injuries serious enough to As the graph shows, we met our target Frequency index Gravity index result in time away from for reduction in the frequency of accidents. Target frequency index Target gravity index work and hours worked. As always we will renew our 20% reduction target for 2016 and will strive to beat it again. We met and significantly surpassed our target for reductions in the gravity of accidents. Work continues to reduce accidents resulting in people needing time off work to zero.

People are central to the company’s achievements 24% 43% REDUCTION IN REDUCTION IN and growth. Not only FREQUENCY GRAVITY do we have a duty to keep them safe and professionally ful!lled, their talent and diligence enables us to hit our sustainable growth targets.

TARGETS TARGET COMPLETION RESULT Committed to reducing lost time ONGOING accidents to zero IN PROGRESS

Reduce frequency of workplace 2015 accidents by 20% YOY ACHIEVED

FUTURE TARGETS COMPLETION Reduce frequency of workplace 2016 accidents by 20% YOY

Report publicly on near misses 2016 TO START

Reduce gravity of workplace 2016 accidents by 20% YOY

2015 SUSTAINABILITY REPORT 12 Louis Dreyfus Company 13 PEOPLE

CASE STUDY: PEOPLE continued CHANGING SAFETY ENVIRONMENT IN KRISHNAPATNAM,

This displays significant progress over the INDIA ZERO LOST 4 years in which we have been reporting TIME INJURIES figures on frequency and gravity of accidents publicly. We are proud of this LDC has installed a safety alarm system 2013 TO 2015 record and continue our commitment to in both the coal fly ash and spent earth % of facilities sustain this trajectory. discharge areas that alerts workers when the discharge process is about to begin. We are alone in the industry in our This is a consistent, reliable system that ASIA transparency around fatalities of all third ensures workers receive plenty of warning, 2015 74 parties who attend our premises. We enabling them to move to a safe area in are deeply sorry to report 2 fatalities at good time. The alarm sounds until the end 2014 63 Louis Dreyfus Company’s Brazilian assets of the discharge process to make sure that in 2015 – 1 at the Engenheiro Coehlo juice no one can return to the discharge area 2013 73 plant and 1 at our fertilizer logistics plant in error. in Paranagua. EUROPE & BLACK SEA

2015 82

2014 88

2013 75

MIDDLE EAST & AFRICA We ran our annual safety innovation 2015 83 IMPROVEMENT SAFETY DAY competition, with the team at our 2014 92 STRATEGIES Each year, Louis Dreyfus Company processing asset in Kandla, India emerging colleagues unite across the world to the global winner. Our proactive approach continues through 2013 67 recognize the importance of safety both implementation of programs, procedures This year we also recognized assets at work and home. This year marked our NORTH AMERICA and training focused on proactive risk that delivered the best overall safety 6th annual Safety Day with the theme, identification and management through performance in each region with the ‘Safety Starts with Me’. It highlighted 2015 71 our SHE management system. inaugural LDC Regional Safety Leadership the basic importance of safety and safe Awards. Award criteria included: 2014 81 We have bolstered our reporting of near behaviors as a way to prevent accidents misses to both broaden and focus our and injuries, and as the basis for • Length of time worked without lost 2013 78 efforts on accident prevention. We will sustainable business. time injuries begin to report on near misses in 2016 • Proactivity in managing safety programs NORTH LATIN AMERICA The day consisted of: with a view to setting targets to reduce and challenges incidents of near misses. • Global Safety Video shown to • Effectiveness of controls for identifying 2015 54 all employees and mitigating risks and hazards. 2014 59 • Distribution and explanation of our Safety, Health and Environment (SHE) 2013 39 vision and SHE policy • Dedicated activities illustrating key SOUTH & WEST LATIN AMERICA components of SHE • Recognition of Safety Champions 2015 75 • Launch of Risk Awareness and 2014 61 Behavioral Safety e-learning module for all employees 2013 68

GLOBAL

2015 67

2014 63

2013 54

2015 SUSTAINABILITY REPORT 14 Louis Dreyfus Company 15 PEOPLE

PEOPLE continued

As an international company NATIONALITY, GLOBALLY, WITH COMPARISON TO 2014 DIVERSITY operating in over 100 countries % of employees Argentina Brazil China India Russian Other around the world, this global Federation Louis Dreyfus Company is committed to feature of our pro!le is mirrored caring for all our people. Our approach by our national diversity. 2015 6 58 4 3 4 25 to diversity considers data across age, 2014 7 62 6 3 4 18 gender and nationality.

GENDER, BY REGION, WITH COMPARISON TO 2014 AGE, BY REGION, WITH COMPARISON TO 2014 % of employees % of employees

Male Female Under 20 20-29 30-39 40-49 50-59 60+

ASIA ASIA

2015 69 31 2015 34 43 17 5 1

2014 70 30 2014 2 37 39 17 4 1

EUROPE & BLACK SEA EUROPE & BLACK SEA

2015 62 38 2015 1 16 28 24 24 7

2014 62 38 2014 1 17 26 24 26 6

MIDDLE EAST & AFRICA MIDDLE EAST & AFRICA

2015 75 25 2015 18 39 29 13 1

2014 75 25 2014 3 18 39 27 11 2

NORTH AMERICA NORTH AMERICA

2015 73 27 2015 13 22 24 30 11

2014 71 29 2014 15 21 25 29 10

NORTH LATIN AMERICA NORTH LATIN AMERICA

2015 78 22 2015 3 33 31 20 11 2

2014 68 32 2014 2 32 33 20 11 2

SOUTH & WEST LATIN AMERICA SOUTH & WEST LATIN AMERICA

2015 84 16 2015 26 44 21 8 1

2014 84 16 2014 24 43 23 8 2

GLOBAL GLOBAL

2015 75 25 2015 1 27 33 21 14 4

2014 69 31 2014 2 27 32 22 14 3

2015 SUSTAINABILITY REPORT 16 Louis Dreyfus Company 17 ENVIRONMENT ENVIRONMENT We have made good We have made good progress towards Since we set it up in 2012, our data setting and meeting ambitious, time- collection on key metrics across our progress towards setting bound targets. We have designed, whole global portfolio has constantly and meeting ambitious, implemented and tested a pilot initiative to improved through the development and reduce energy consumption. That project alignment of our methodology. This time-bound targets. has delivered significant energy usage data and progress on energy reduction reductions and greenhouse gas (GHG) approaches will form the basis of our emission reductions. With the success specific, focused reduction targets. of the pilot, we will now look to roll that program out to deliver waste and water usage reductions.

GLOBAL ENVIRONMENTAL KPIs

ENERGY CONSUMPTION GHG EMISSION INDEX WATER CONSUMPTION WASTE INDEX (MT/MT) INDEX (GJ/MT) (KG CO2e/MT) INDEX (m3/MT)

INDUSTRIAL WATER FOSSIL FUEL FOSSIL FUEL CONSUMPTION WASTE WATER 5% 6% 7% 14% 2015: 0.41 GJ/MT 2015: 24.66 KG CO2e/MT 2015: 0.25 m3/MT 2015: 0.15 MT/MT 2014: 0.43 GJ/MT 2014: 26.15 KG CO2e/MT 2014: 0.27 m3/MT 2014: 0.18 MT/MT

RENEWABLE FUEL RENEWABLE FUEL SOLID WASTE 8% 15% 30% 2015: 0.21 GJ/MT 2015: 15.1 KG CO2e/MT 2015: 0.006 MT/MT 2014: 0.23 GJ/MT 2014: 13.14 CO2e/MT 2014: 0.004 MT/MT

This index shows the ratio of Our greenhouse gas Our water consumption The ratio given here shows fossil fuel energy consumed emissions (GHG) index shows presents the ratio of water the amount of waste produced by the facility industrial the quantity of GHGs emitted used for each metric ton for every ton of feedstock processes per unit of per ton of feedstock either of feedstock crushed or crushed or processed, in feedstock processed in each crushed or processed for each processed. The ratio is given metric tons of waste produced business region. Depending region in which we operate. in cubic metres per metric per metric ton of feedstock on the facilities in that region, This is measured in kilograms ton (m³/MT). (MT/MT). TARGETS the feedstock element of that of carbon dioxide-equivalent We are pressing forward The year-on-year drop in Our facilities generally produce TARGET COMPLETION RESULT ratio represents feedstock per metric ton of feedstock to ingrain a strong, strategic processed, in the case of an (kg CO2e/MT). water consumption is linked to little solid waste as we can Set global time-bound targets for 2015 industrial facility, or feedstock heightened industrial efficiency use secondary components approach to reducing the PARTIALLY CO2 emissions have been and processing improvements. of many of the commodities reducing resource usage and emissions handled, in the case of a environmental impact ACHIEVED warehouse or logistic facility. reduced due to a 5% reduction A new boiler in our Ponta we process to produce useful The unit of measurement is in fossil fuel consumption. Grossa oilseeds crushing by-products. This results from efficiency plant in Brazil and improved of our operations FUTURE TARGETS COMPLETION gigajoules per metric ton The overall increase is partly (GJ/MT). gains in the 3 regions (North equipment at various sites in Roll out Energy Champions reduction 2018 America, Asia and South & Asia account for a large part due to an increase in plastic company-wide. solid waste in Asia but in strategy across all metrics West Latin America) that of this reduction. account for most of our fact this waste was sent fossil fuel usage. These for recycling. Other causes Set global time-based targets for 2018 include changing waste reducing energy consumption gains translate to a global improvement in this index. handling practices for sugar and oilseeds processing in Set global time-based targets for 2018 TO START The increase in GHG North America. reducing GHG emissions emissions for renewable fuel resulted from a switch Waste water is a greater Set global time-based targets for 2018 at some of our Brazilian area of focus, with scope reducing waste production operations from for loss of water through sugar cane bagasse to wood various processes. The Set global time-based targets for 2018 chips as a fuel source. The overall increase in waste conceals improvements in reducing water consumption latter has a considerably higher emissions coefficient. this area, linked to industrial efficiencies in North Latin America and Asia.

2015 SUSTAINABILITY REPORT 18 Louis Dreyfus Company 19 ENVIRONMENT

ENVIRONMENT continued In Asia, over 30 energy saving actions were undertaken, resulting in signi!cant reductions in usage, and cost savings of 10% of operating expenditure.

CASE STUDY: CASE STUDY: ENERGY & WATER GHG EMISSIONS We conducted water usage awareness training At the end of 2014, we established the at all our assets in São Paulo state, Brazil. Energy & Utilities Competency Center As well as raising awareness, the sessions (E&UCC) out of concern for our equipped staff with ideas for reducing water environmental footprint, predominantly consumption and for identifying opportunities for industrial business operations. This to recycle waste water. year we launched the Energy Champions Network initiative that, with the guidance This has prompted staff at various sites to of the E&UCC, aims to reduce energy propose a number of adaptations to save consumption across all our assets. To water. For example, we have now commenced ensure success, we engaged with and installing water saving devices on all the taps identified local competency, endorsing a and lavatories at our assets in the state. Site Energy Champion and Energy Team This simple learning has the potential to prompt in each of our locations to drive the similar initiatives across the region and our Network’s actions. global portfolio. Our global approach has already produced effective results. Asia has made a 10% reduction in energy usage on an annualized basis. Argentina has cut 5% of their steam consumption by modifying fuel combustion at the soybean crush plant in Timbues. We have commissioned a new 30MW biomass boiler in Brazil that has the potential to save substantial amounts in annual energy costs.

CASE STUDY: ENERGY & EMISSIONS

Our facility in Port Wentworth, US engaged in an energy and GHG emissions reduction drive this year. To reduce GHG emissions the team increased the use of natural gas in place of coal. This reduced emissions by 8% and also significantly cut energy costs. The energy efficiency program began this year and is in its early stages. Initial work has involved reviewing our processes for energy efficiency opportunities. Despite being a new program we have already identified opportunities to reduce energy by 4-5% and costs by approximately $528,000 per annum without affecting production quantities.

2015 SUSTAINABILITY REPORT 20 Louis Dreyfus Company 21 ENVIRONMENT

ENVIRONMENT continued

CASE STUDY: PRESERVING FOREST CASE STUDY: WASTE HABITATS In Brazil, our Juice Platform takes In 2015, we installed a new system to numerous steps to preserve the forest recover oil components from the biodiesel habitats that surround our citrus farms. production process at our General Lagos All LDC-owned farms run three site in Argentina. programs to maintain Areas of The biodiesel process includes purification Permanent Preservation. These stages in order to meet customers’ programs require careful management expectations in terms of product of land to: specification and quality. The residual • Plant native seedlings, reporting mix of oil components must be separated progress annually to the Brazilian from the biodiesel. government Due to difference in densities between • Prevent invading plants from components, the most efficient system competing with young, native trees is a static decantation process using a • Ensure soil erosion does not dedicated horizontal tank. This effective excessively silt up rivers and affect separation enables us to reincorporate water quality. oil fractions in the process and limit any For example, a specific program is disposal as industrial waste. in place at our farm in Monte Belo, The combined benefits are yield Ribeirão Bonito, São Paulo, to improvement and significant reduction carefully identify, log and monitor all of pollution. animals and plants around our farm to ensure preservation, especially of endangered species.

BIODIVERSITY Preserving biodiversity around our assets is a major concern to us both globally and locally. As we expand our asset base we always give weight to the results of both environmental and social impact assessments before beginning projects in any area where there are possible sensitivities. We continue to support numerous initiatives, especially in Asia and Africa, aimed at protecting and enriching biodiversity. This way we hope that we not only prevent our operations from damaging local ecosystems, but that we also contribute to improving ecosystems in many areas.

2015 SUSTAINABILITY REPORT 22 Louis Dreyfus Company 23 PARTNERS PARTNERS We look to develop and build upon our collective knowledge to engage and educate stakeholders multilaterally. Commodity-specific roundtables are at the heart of this approach. GRAINS However, Louis Dreyfus Company We have been proactive in seeking also takes a proactive approach to multilateral cooperation on sustainable understanding clients’ prospects and food, including grain, by joining the priorities. This generates a strong, Sustainable Agriculture Initiative collaborative approach to finding Platform (SAI), a food and drink sustainable solutions. value chain initiative for sustainable agriculture. The platform develops For further information on how we tools and guidance to support global engage with partners please see: and local sustainable sourcing and Palm (pages 36-37) agriculture practices. Juice (pages 38-39) With its arable and vegetable section, Coffee (pages 40-41) SAI enables us to re-engage in efforts to Cotton (pages 42-43) Working in partnership create a sustainable approach to growing Soybeans (pages 44-45) is central to our approach grains and other crops. The SAI Platform is built on strong values with pillars to sustainability. covering society (people), economy We understand that (profit) and environment (planet). The Platform’s 2020 vision is to transparent conversations implement secure and thriving with stakeholders agricultural supply chains and protect the Earth’s resources through widespread are fundamental to adoption of sustainable practices that problem solving. deliver value to its members, farmers, farming communities and consumers.

TARGETS COMMODITY TARGET COMPLETION RESULT Here is a summary of WWF # FOOD CHAIN REACTION RICE Assist the Sustainable Rice Platform to 2015 other activities we have This initiative illustrates the stage, the teams were presented with establish effective scientific assessment COMPLETED undertaken in partnership importance of a collaborative approach the combined consequences of their and outreach mechanisms to addressing global challenges. decided actions. Promote knowledge and use of Better with stakeholders. COTTON 2015 Our participation in and sponsorship The process was highly enlightening, Cotton Initiative standards among brands, COMPLETED of Food Chain Reaction – A Global demonstrating to participants that no retailers and producers Security Game is one of the increasingly single nation, organization or corporation COTTON Increase volume of Better Cotton 2015 innovative ways in which we are engaging can adequately address global food purchased by 25% COMPLETED with partners to benefit the world security. Our unanimous solution, of food provision. therefore, was that global cooperation and collaboration was needed to build resilient Work with Bonsucro to promote their In November 2015, we joined 65 other SUGAR 2015 structures. However, it became clear that activities with growers from whom COMPLETED international thought leaders that took these structures require accurate data we buy sugar part in a policy decision-making exercise from all nations, a consistent focus on food organized by WWF. The purpose was Increase volume of certified coffee we vulnerability and security, and proactive COFFEE 2016 to better understand how shocks can purchase to 19.0% of our total volume AMENDED rather than reactive action plans. influence global food supply. The game addressed how nations respond in the This is the first event of this kind, with COFFEE Increase volume of certified coffee we 2019 face of instability, the necessary balance the potential to be repeated at both global purchase to 23.0% of our total volume AMENDED of long- and short-term approaches to and regional levels. We are extremely sustainability, and how the market will be keen to remain involved in these events disrupted with increasing levels of stress to keep us at the leading edge of COMMODITY FUTURE TARGETS COMPLETION on the global food system. conversations surrounding innovative COFFEE Increase volume of certified coffee 2016 approaches to global food security. It The exercise simulated a decade of we purchase to 14.2% allows us to support and build relationships turbulence including food price and with other international leaders in the supply swings, population growth, rapid COFFEE Increase volume of certified coffee 2020 sector, and to appreciate our role in the urbanization, extreme weather and social we purchase to 17.0% interdependencies within the global TO START unrest across four stages. After each COTTON Increase volume of Better Cotton 2016 food system. purchased by 25% JUICE Increase number of LDC-owned farms with 2016 Rainforest Alliance certification from 5 to 11

2015 SUSTAINABILITY REPORT 24 Louis Dreyfus Company 25 PARTNERS

PARTNERS continued

MAKING SUSTAINABLE COTTON THE NEW NORMAL In 2005, the Better Cotton Initiative (BCI) We know our aims are ambitious, but we was born out of a round table led by WWF. are not in this alone. Many of our members, JOINED THE SUSTAINABLE World experts convened in an effort including Louis Dreyfus Company, have AGRICULTURE INITIATIVE (SAI) to find sustainable ways of producing set ambitious public targets for sourcing PLATFORM important commodities. For cotton, more sustainable cotton. We applaud they established a standard production these commitments and look forward to system (Better Cotton Standard System) supporting our members in reaching their that BCI’s implementing partners now targets through innovative approaches to use for training and educating farming both supply and demand. communities worldwide. This achieves: One characteristic of cotton as a • Reductions in key environmental commodity is the occasional wild impacts fluctuation in market prices. With this • Improved social and economic comes a vicious boom-bust circle for benefits for cotton farmers farmers, leaving a great proportion of them in poverty and/or insurmountable debt. In 2010-11, the first harvests of Better Sustainable cotton production addresses Cotton took place in Brazil, India, Mali and this and other social issues alongside Pakistan. By 2014, BCI achieved record environmental performance. LISTENING TO OUR STAKEHOLDERS numbers, reaching 1.2 million farmers and accounting for 7.6% of global cotton We recognize the vital role that merchants Listening to our stakeholders is key to our growth. We are production in 20 countries worldwide. play in the supply chain by providing combining expertise and working more consistently with For 2015, we expect BCI to reach reliable and predictable outlets to approximately 1.5 million farmers and producers and facilitating manageable them to establish how we embed sustainability into an account for 11.3% of global production. flows of product into the supply chain. entity like Louis Dreyfus Company. However, we do count on merchants to As a multi-stakeholder initiative, BCI help dampen pricing volatility, as well cooperates with all the relevant actors in Learning and collaborating increases capacity for a as foster the longer-term relationships cotton’s complex supply chain to ensure between trading partners that will robust, long-term sustainable approach to our work. transformational change. Our member and reinforce sustainability. partner organizations include the world’s largest retailers and brands, influential Together, we can achieve lasting, traders such as Louis Dreyfus Company, transformational change for a commodity hundreds of suppliers and manufacturers, market. This change benefits all Many businesses are now trying to Fundamentally, it gives an opportunity to leading groups from civil society and stakeholders in the chain. We must use answer a big question: where do the raw engage suppliers in a constructive way; to public authorities. When all players unite to this opportunity and the engagement of materials we buy come from? This is part jointly explore solutions to environmental address sustainability as a pre-competitive all players to ensure the future of healthy of a wider focus on traceability over the and social challenges within the value chain. last half decade, especially where big issue, their commitments to responsible cotton production for future generations. Louis Dreyfus Company has embarked commodities are concerned. Transparency sourcing drive meaningful change on on this journey, focusing on their palm oil Alan McClay, CEO, BCI is vital. the ground. business. Supported by TFT, suppliers have Our goal for 2020 is to reach 5 million There is a trend towards buyers seeking been reviewed to determine next steps farmers and 30% of global production. In increasing visibility from suppliers about as LDC seeks to drive better practices and other words, our goal is that sustainable the supply chain. With supply chain innovation to bring real positive change to cotton production becomes the rule rather visibility, buyers and suppliers are pursuing the way palm oil is produced. proactive approaches to potential risks. than the exception. In the near future it is key for They are also addressing concerns of Louis Dreyfus Company to continue deforestation and exploitation raised addressing the question of ‘where do the through social media by communities raw materials we buy come from?’, but and civil society groups. across more commodities. With over a 165 A handful of businesses are embracing years of experience in commodities, LDC transparency, integrating it into the has an important contribution to make in business beyond the traditional meaning the way commodity crops are managed of the word. Building transparency and expanded to meet the needs of an of raw material origin is a step in the increasing population without jeopardising right direction. It facilitates a deeper the environment or people’s rights. understanding of the issues that are linked Robert McWilliam, Senior Manager, to the production of the raw material. The Forest Trust

2015 SUSTAINABILITY REPORT 26 Louis Dreyfus Company 27 PARTNERS

PARTNERS continued

SUPPORTING FARMERS AFTER FIRES The 2015 fires in Western Australia were Regarding the backing from LDC, Brad incredibly destructive for many farmers, with said “we didn’t really expect to receive the impact of the damage unquantifiable at support from any of the companies we this time. trade with.” “$ ank you for all the Louis Dreyfus Company in Australia He received a letter from Rob Shirras, adapted quickly to support farmers through the local Macrofertil Account Manager alternative assistance LDC our Macrofertil operations. with the offer of support. He took up the has given farmers in our extended finance option of 90 day terms For example, Brad Vermeersch, a farmer on fertilizer purchases, plus the free soil area after the !res. It was based near Esperance, lost 4,000 hectares testing – “a little bonus.” The main benefit and is appreciated!” of stubble and 30-40km of fencing to the for Brad is that Macrofertil helped to fires. Brad was lucky as he suffered no stretch out and delay payments due for Paul & Gudrun Defrenne crop damage and firefighters were able its products – vital inputs for his farm. to save his home. Riverback Farms In the future, Brad looks to continue to However, due to the lack of stubble from develop his partnership with Macrofertil: the fire, topsoil erosion is now a major “It’s very important for us to have a good concern in the area: relationship with them, to have someone “Every time we get rain it washes more out there kicking the dirt with us in the topsoil away down gullies and creates paddock; a local presence. They have burrows in the paddock.” been very good at servicing our needs and providing us with good quality, competitive priced fertilizer”.

IFC TESTIMONY

In IFC’s 60th year, the Growing our agribusiness portfolio is a the need for improved performance Bonsucro (sugar/ethanol), to the recently In that respect, other incentives within The recently signed Climate Change strategic objective for the IFC and is built at both farm level and throughout the developed Sustainable Rice Platform (SRP). the value chain need to be developed and agreement in Paris and the articulation of private sector arm of around three pillars: supply chain. These platforms have ambitious aims of we all have a role to play. This may be: the UN’s Sustainable Development Goals current production processes moving to give renewed impetus and resources for the World Bank Group • Enhancing food security Making smallholder agriculture more • Supporting/delivering capacity-building a more sustainable path. pushing further ahead in addressing some • Promoting inclusive development productive, restoring degraded lands into programs that help supply chains continues to provide of the planet’s most pressing problems. • Making environmental and social production and reducing post-harvest Merchants like LDC have a key role to play transition (such as NGOs and donor investment and sustainability a business driver losses are all strategies that can fulfill in the transformation of these sectors. programs) IFC will continue working with our expected food needs. They also present They have the scale of operations to make clients to grow their businesses in advisory services across This is a significant challenge considering • Developing financial products such future investment opportunities for a difference, as well as the commercial a resilient manner. an additional 2 billion people will live on as the Sustainable Shipment Letter of emerging markets. companies such as LDC and long-term relationships and infrastructure that link Earth by 2050, requiring an estimated Credit (an IFC and Banking Environment Bruce Wise, IFC Manufacturing investors such as IFC. the producer base with end markets. 70% more food. As climate change Initiative project). This provides a Agribusiness and Services Department, implications on supply have become In 2014 IFC invested in Biosev (a sister It is important to recognize that each financial incentive for RSPO-certified Washington DC, US. better understood, the conversion of company of Louis Dreyfus Company commodity transformation process is oil trading. forests and savannahs to agriculture BV) in Brazil, supporting the firm’s plan different and evolves over time. For Building comprehensive partnerships that use is under greater scrutiny. to improve productivity and increase example, the premium-based model where link all parts of a value chain remains a power generation from biomass, in turn financial incentives are built into the price of Many governments and companies signed challenge. Organizations like RSPO provide increasing capacity. the commodity has instigated the transition the New York Declaration on Forests great platforms for initiating and developing in palm oil. However, this is unlikely to work in September 2014. The aim is to halve Beside the investment relationship, IFC and these ‘uncommon collaborations’. This is in more price-sensitive emerging markets natural forest loss by 2020 and to end it LDC are active members across a number one of the key benefits of being engaged such as India and China. by 2030. This reduces the potential area of voluntary standard platforms from RSPO in such organizations. of expansion for agriculture, reiterating (Roundtable for Sustainable Palm Oil) and

2015 SUSTAINABILITY REPORT 28 Louis Dreyfus Company 29 COMMUNITIES COMMUNITY In our third year of collaborating with the Louis Dreyfus Foundation, we have strengthened and developed our global initiatives. $e Louis Dreyfus Foundation continues to support and fund selected projects proposed by our employees.

EMPLOYEE%DRIVEN LOUIS DREYFUS SOLUTIONS FOUNDATION Louis Dreyfus Company operates in over The Louis Dreyfus Foundation aims to 100 countries, employing over 22,000 alleviate hunger and poverty by supporting people at peak season. This provides a range of projects bringing sustainable a wide reach of local knowledge of agriculture, food security and self- the needs of the communities around sufficiency to small farmers. These projects our operations. are predominantly in developing countries in Africa and Asia. We support and encourage our employees to engage with and initiate Our employees are able to suggest projects where they see opportunity. initiatives for the Louis Dreyfus This applies to both initiatives that the Foundation’s support under our cooperation Louis Dreyfus Foundation supports and ones agreement with the Foundation. If the the company carries out independently. proposal is successful, the employees use their combined experience and knowledge This approach means empowering our to lead projects through to completion. people to enable change where it is required. A selection of our employee- 7 projects are currently operating within this driven projects are presented overleaf. partnership and this year we are pleased Identifying needs to provide updates on the 2 projects We have explored taking a quantitative, highlighted in last year’s Report. and developing the target-driven approach to encouraging and communities where we maximizing engagement in community projects. Such an approach appeared to operate are key to our restrict our employees’ initiative-taking sustainability strategy. and so we have chosen to continue on our existing path of trusting and supporting them to find the solutions local We always aim to conduct TARGETS communities need. In order to maintain the quality and quantity of projects we are social impact assessments TARGET COMPLETION DATE RESULT ENSURING therefore moving away from quantifying at all our assets, every year, Establish group-wide methodology for 2014 IMPACT AT and target setting. We will continue to monitoring volunteer hours on community report on the range of initiatives we to ensure we bene!t the projects CLOSED LOCAL LEVEL commence and support. communities around us. We A large proportion of our impact comes through dedicating employees’ time to will therefore start reporting Gather data for volunteer hours 2014 community projects. Through their own on whether we meet this across all regions CLOSED assessments and through engagements target each year, to be with local people, our colleagues are Set targets for volunteer hours 2015 able to determine the requirements transparent on the inclusion for all regions CLOSED and priorities of those communities. This in turn allows existing projects to of sustainability concerns in be supported, or new initiatives to be Design a community program 2014 designed specifically to cater for an our day-to-day business. 1 capable of being applied to a ON HOLD identified need. range of our platforms The examples that follow illustrate FUTURE TARGETS COMPLETION DATE how this drives engagement with Community impact assessment 2016 and investment in projects that benefit in each asset we build, invest TO START local people. and operate in

1 As explained in last year’s Sustainability report, this target has been placed on hold and we shall maintain reporting it as such until any change occurs.

2015 SUSTAINABILITY REPORT 30 Louis Dreyfus Company 31 COMMUNITIES

COMMUNITY continued ENABLING SUMATRAN Example projects Louis Dreyfus Foundation Louis Dreyfus Foundation COFFEE FARMERS projects projects This initiative supported by the Louis Dreyfus Foundation aims to preserve and regenerate the coffee ENVIRONMENTAL PROJECTS IN INDIA ecosystem while improving the economic We continue to identify needs within in Pantapalem Village, for children and social conditions of small-scale our Indian communities, resulting in LDC and villagers. Our employees have Indonesian coffee farmers in 3 different investing in a wide variety of initiatives. contributed greatly to these efforts, regions: Aceh, Medan and Lampung. Many have been environmental projects personally leading many initiatives. Working with the organization Pur Projet such as planting trees in the green belt These include: and LDC Indonesia coffee agronomists, the area near our refinery in Kandla and the • Distribution of winter clothing, toys Foundation’s aim is that, by 2017, the 7,635 erection of fencing to protect the belt. and 100 blankets to children in slum farmers participating in the program will Additionally, we have supported areas in New Delhi be more self-sufficient. With each farmer many social benevolence projects: • Donation of clothing to the disabled having a family of at least 4 people, the from provision of a range of surgical and to those in need in Uttrakhand EMPOWERING community-wide impact from the training is equipment to distribution of safety • Blood donation in Kandla. FARMERS IN significant, with the possibility of improving kits to workers to a free medical camp livelihoods of some 30,675 beneficiaries. GHANA The program has already seen The Louis Dreyfus Foundation continues encouraging progress: to grow the program to support farmers • in Kukuo and Gnani, supplying them 115,000 trees already planted out of with inputs, equipment, livestock and 180,000 planned. Plantation to start training. LDC employees are working with in Medan area, North Sumatra. • beneficiaries to maximize their yields. The 1,585 farmers trained in coffee best project seeks to accelerate transfer of practices in Lampung during a crop knowledge and enhance diversification tour conducted by our agronomists. • of micro-farming activities. 172 smallholders trained in North Sumatra and Medan so far. To update on advancement since 2014, there have now been 557 farmers supported in 3 areas with approximately 1,800 beneficiaries. This year 2,000 chickens were distributed in Kukuo.

COMMUNITY AROUND SOYBEANS AGRO VILLAGE%BASED SELF%SUFFICIENCY IN ARGENTINA BIODIVERSITY ADVISORS THROUGH Soybean production touches many • In EEMPA Bandera, we opened FARMING With the support of the SUSTAINABLE people worldwide. Building communities a high school that currently has This initiative, supported by the Louis Dreyfus Foundation, the not-for- is therefore fundamental to our 60 students enrolled. ENERGY Louis Dreyfus Foundation in Msorongo profit Farm Input Promotions Africa sustainability strategy. This year we The Flexi Biogas project was initiated in This follows on from work in previous village, Kenya aims to benefit small-scale established networks of 15 self- have increasingly focused on educational 2013 by the Louis Dreyfus Foundation, to years, including projects such as building farmers located in fragile ecosystems. employed village-based advisors in each support for local communities. improve the quality of life of smallholder a center for retirees in Timbues, and Farming Agro Biodiversity is a long-term of Kirinyaga and Nyeri Counties, Kenya. farmers through sustainable energy self- • We opened a primary school at our reconstructing a local swimming pool approach to ensure high productivity levels These trained advisors provide sufficiency. The energy is supplied by General Lagos plant for those LDC roof in Arroyo Seco. that also promote sustainable land use education and inputs in order to capturing and burning gas derived from employees who didn´t have the systems and reforestation measures. enhance food security and livelihoods animal waste, and from solar kits. opportunity to finish their education. The project supports the social, economic of coffee farmers. To date, 16,462 Already this year we have 20 students, To update on progress, the total number and environmental wellbeing of farmers have been involved, assisting and 5 graduates. of beneficiaries to date is 1,458 with communities through: a total of 98,772 beneficiaries. 204 units installed so far. • Increasing agricultural productivity to meet food security and economic stability needs • Improving the environment, including water and soil, and limiting habitat degradation.

Kenya

2015 SUSTAINABILITY REPORT 32 Louis Dreyfus Company 33 PLATFORMS’ INSIGHT

PLATFORMS’ INSIGHT • Palm • Juice • Coffee • Cotton • Soybeans

2015 SUSTAINABILITY REPORT 34 Louis Dreyfus Company 35 PLATFORMS’ INSIGHT PALM

Palm oil plays an important part in global food consumption and 85% of global in the production of palm oil numerous other currently comes consumer and industrial from Indonesia products. $e supply and Malaysia chain of palm is complex and brings with it many sustainability- related issues.

Sustainable palm oil is OUR APPROACH PALM SUPPLIER TRACEABILITY OTHER STEPS becoming increasingly We are acutely aware of the importance SUSTAINABILITY Traceability is a key starting point for LDC is strongly committed to working Implementing advanced technology is one important to consumers. of traceable, sustainable palm oil and seek palm oil sustainability. This is particularly with stakeholders in order to promote way in which we can improve the impact to continuously improve our supply chain. CERTIFICATIONS challenging given that we have no good environmental stewardship, and of our palm business. For instance, in 2015 Traceability is a principal LDC has to comply with changing plantations, and are therefore always eliminate exploitation of employees we invested in more efficient refinery We have been RSPO members since government regulations while continually having to source from external suppliers. and communities. We regularly and equipment to significantly reduce the part of the journey to ensure 2012 and are working towards all of our expanding our sustainable palm oil We are also a relatively small participant enthusiastically engage with the RSPO, amount of coal used in the process. assets complying with RSPO standards that we work together with certification. Meanwhile, we must meet in world palm oil flows. NGOs and other round tables to further This both optimizes our resources and as a minimum. This year we have our goal to steadily increase volumes of advance our sustainability programs. achieves excellent greenhouse gas the industry, NGOs and renewed certificates for our assets with Mapping begins by locating the mill certified palm oil sales. For example, we emission reductions. 100% of our Indonesian network now through spatial (GPS coordinates) and On completion of supply chain mapping, suppliers to transform responded to recent biodiesel regulation RSPO certified. non-spatial analysis (the criteria to the next stage will be to engage with our This year, LDC has allocated an origination- the palm value-chain. We change in Indonesia, where we operate determine sustainability). suppliers to enhance the sustainability specialist Palm Sustainability Manager to In 2013, we established our own principles several assets. The law changed from a B10 have been working hard in profile of the palm products that we buy. work closely with related stakeholders to further guide all palm oil business requirement, where fuel at industrial assets Our supply chain mapping exercise with an within the business supply chain. This origination to ensure that we towards a sustainable future. We look must contain 10% diesel, to B20 (20% external consultant covered 100% of our We will keep working to build a sustainable arrangement further promotes continuous to continually develop our principles in biodiesel). Our refinery’s operational fuel Indonesian assets and the majority of our approach into our own practice and ensure meet this demand through progress and regular monitoring in our reaction to stakeholder feedback and now therefore consists of 20% biofuels. origination network. By the end of 2015, traceability remains at the core of our palm ongoing palm sustainability journey. continuous asset investment market changes. Our Palm Steering we had achieved 100% traceability to mill oil sustainability strategy. Last year we focused on establishing Committee drives this process to ensure level for both our refineries in Balikpapan and development. RSPO and International Sustainability and focus and progress. and Lampung, Indonesia. We hope to Carbon Certification (ISCC), and building continue to work with this consultant to LDC is firmly committed to: our robust internal policy. This year, complete mapping, then start grading our following through on a policy commitment, mills. In addition to mapping geographic • no deforestation of high conservation we are pleased to have made significant locations, this traceability exercise has also value (HCV) lands or high carbon stock progress on supply chain mapping. (HCS) areas helped us to highlight areas where working • no development on peat TOTAL SALES, ISCC AND RSPO, practices and environmental stewardship • no exploitation of rights of local 2013 TO 2015 (IN MT) need to be addressed. communities or indigenous people 2015 266,488 We will continue to actively engage with all our stakeholders to ensure our 2014 223,632 agricultural supply chains, including palm 2013 184,968 oil, evolve to meet these commitments. 2012 30,000

2015 SUSTAINABILITY REPORT 36 Louis Dreyfus Company 37 PLATFORMS’ INSIGHT JUICE

Louis Dreyfus Company is a leading juice merchandizer with operations spanning COMMUNITY DEVELOPMENT 70 countries. Brazil Partnerships are key to ensuring our Additionally, we support a number is at the heart of our business benefits local communities. of other initiatives that include: citrus operations, with We run the Environmental Education • A non-profit organisation in Bebedouro, Brazilian orange juice Program, “Juntos Pelo Meio São Paulo that benefits children and Ambiente”(Together for the Environment), teenagers through social programs accounting for 3 out in communities where we operate. and education. of 5 glasses of juice The program promotes environmental • Supplying fruit and juice donations to responsibilities through planting seedlings, several educational institutions to boost consumed worldwide. lectures and farm visits. We currently infant nutrition. teach 1,300 children and teenagers in • Encouraging our employees to participate 4 municipal schools in Brazil. Following in collection drives to help various positive results in Ribeirao Bonito, the institutions within the communities in RAINFOREST initiative has expanded in 2015 to 2 other which we operate. ALLIANCE cities in São Paulo state. The Rainforest Alliance promotes healthy ecosystems and communities through training and certification. Rainforest Alliance certification is based on the Sustainable Agriculture Network (SAN) standards, which rigorously cover social, economic and With its considerable LOOKING AFTER ENVIRONMENTAL environmental sustainability in both size and reach, the Juice OUR PEOPLE ADVANCES CHALLENGES businesses and communities. LDC juice operations are now certified Platform is central to our We have strong responsibilities towards We are making significant strides in our FROM in two ways. First, we have farm-level our employees, with up to 10,000 working environmental program. Efficient resource sustainability strategy. $is certification on 5 of our 39 farms. for us at peak season. We strive to exceed usage is key to this. Here are some CONSUMER Secondly, we have chain of custody year we completed our national labor regulations, particularly in examples of how we put this into practice: DEMAND certification, meaning that we can trace our benefits and adherence to corporate second report on how we • We dramatically reduced water usage Our carbon footprint of produce as Rainforest Alliance compliant safety policies. produce juice sustainably. through a water scarcity awareness Not from Concentrate (NFC) right from our Matão processing plant in We present some key All employees, including seasonal pickers, program at industrial sites. In juice is significantly heavier Brazil to our destination port terminal in go through mandatory training to ensure Matão, Mato Grosso, Brazil we have per litre than that of FCOJ. Ghent, Belgium. they adopt best working practices. successfully implemented a reusability This is because FCOJ is highlights of our proactive We are committed to further developing Everyone is issued with full personal plan: Frozen Concentrated Orange Juice transported in concentrated sustainability e"orts here, our relationship and certification program safety equipment for use at all our sites. (FCOJ) production involves significant form, then re-diluted. This with the Rainforest Alliance. In 2016, with more detail available water evaporation. This is subsequently is significantly more carbon- We provide our pickers at every work we are targeting to increase the number condensed, recovered and used to clean efficient. However, growing in that report. site with: of LDC-owned farms with Rainforest both fruit prior to processing and the demand for NFC juice will make Alliance certification from 5 to 11. • Transportation site’s production equipment. reducing our logistics carbon • Water • We have proactively increased recycling footprint increasingly difficult. • Shade of organic waste at our industrial sites. We continue to seek ways to • Sanitary & eating area facilities In Matão, this has meant using sludge counterbalance this effect. and boiler ash for composting, which All our pickers in Brazil are paid at a rate previously would have been sent 11 above the legal minimum wage. We to landfill. also add a variable premium linked to • We are transitioning to renewable performance and safety targets. energy sources more and more as a 5 highly impactful way to reduce our carbon footprint. Renewable fuel now represents 45% of total consumption in our Brazilian operations, up from INCREASE THE NUMBER OF 33% in 2014. LDC-OWNED FARMS WITH RAINFOREST ALLIANCE CERTIFICATION FROM 5 TO 11

2015 SUSTAINABILITY REPORT 38 Louis Dreyfus Company 39 PLATFORMS’ INSIGHT COFFEE NEW GLOBAL VIETNAMESE ORGANIZATION FARMER FOR A BETTER PERSPECTIVE IMPACT Tien has been part of the LDC sustainable farmers’ network for 3 years. Every year Last year, we underlined our concern he attends coffee training provided by Louis Dreyfus Company to ensure that the next generation of LDC agronomists. The aim of the smallholder coffee farmers will have is one of the world’s training is to help farmers improve their commercially viable operations. The farm practices, in turn reducing their largest merchandizers of emphasis is on productivity and quality. environmental impact. green co"ee. Our position We also highlighted the limitations of gives us a responsibility certification/verification systems in these In addition to coffee, Tien grows a variety domains. The issues relate, for example, of other crops such as durian, avocados Tien from Lam Dong province to inform and educate to improving productivity and quality, and pepper. For some time, pepper has smallholders and efficiently reducing production costs, been a profitable crop and in 2015 the and increasing farmers’ margins. price was particularly high. The pepper promote best practices crop enables Tien to have a double source 2015 saw significant changes in the of income and consider both the coffee in the sector. sustainability organization landscape. and pepper price. This year for instance, Led by some key players such as the 4C he has been able to sell his pepper at a We are therefore working Association and IDH (The Sustainable high price. on various initiatives to Trade Initiative), the major roasters and support an ever-growing others from the private and public sectors Tien learnt how to improve and apply have defined a new structure. The aim of fertilizer at the right time according to network of farmers this structure is to more efficiently address weather conditions. Ultimately, this in order to increase the coffee sector’s issues and to have a improved his coffee production and positive and long-term impact. LDC will productivity. His farm is less than awareness of responsible continue to actively support this new 2 hectares and this year he produced sourcing. approach and participate in the journey. 58 bags of coffee.

OUR PERFORMANCE IN 2015 In 2015, the coffee market faced Over the past few years, LDC has As international prices for coffee fell, numerous challenges. Our sales of significantly expanded its network of Vietnamese farmers decided not to sell certified sustainable coffee reflected farmers. This allows us to offer a large their coffee and wait for a better price. CASE STUDY: these difficulties, meaning we did not range of certified/verified coffee to our A high number of these farmers have meet our ambitious 2015 target for that customers, including Rainforest Alliance, diversified income streams, including from TRAINING IN to represent 16% of coffee we sell. In UTZ, 4C, CAFÉ Practices, Fairtrade, and pepper production. High pepper prices in general, the percentage of certified/ Organic Certifications. We are proud to 2015 meant that they were able to hold INDONESIA verified sales has remained stable. We support approximately 20,000 farmers coffee stocks for longer, with revenue Deforestation is a hugely significant have revised our future targets to reflect worldwide on sustainable programs. from pepper compensating for lower issue in Indonesian farming. However, the market situation. They produce around 2.7 million 60kg coffee sales. The impact of this decision reforestation through integrated bags of coffee. was higher coffee stocks in Vietnam Our 2015 performance shows that we landscape programs is an impactful throughout 2015, with less product being have consolidated our position in supplying The majority of commercial difficulties way to support local coffee farmers. The sold for export, . certified/verified coffee to our customers. faced by certified/verified coffee came Louis Dreyfus Foundation established from Asia, particularly Vietnam. The impact a project combining the complementary of these difficulties was global as Vietnam expertise in agro-forestry of Pur Projet is the world’s top Robusta producer. with LDC training in coffee farming best practices. GLOBAL COFFEE TREE RENOVATION For more detail on this project see page 33. OUR REVISED TARGETS ARE THE FOLLOWING: SALES CERTIFIED/VERIFIED, 2012 TO 2015 (INC ZEPHYR) Climate is fundamental in all farming are found in Brazil and Colombia where % SUSTAINABILITY SALES/TOTAL SALES 4C Café Practices UTZ RFA Fairtrade / Organic sectors, particularly coffee. Coffee renovation programs have been part of farmers therefore must take increasing regular farming practices to maintain or 2015 2014 temperatures into consideration as increase productivity. In some countries, they are affecting production. The rise such as Mexico and Panama, governments 2015 in temperature at lower elevations has financially support farmers in an effort caused more coffee trees to be damaged to renovate plantations. 2.2% 2.5% 2014 by disease. However, coffee rust has also Through our sustainability programs, TARGET: 16.0% TARGET: 11.3% appeared at higher elevations, so migration 2013 we provide dedicated support to farmers REACHED: 13.8% REACHED: 13.8% to higher areas may not be the answer. who are willing to regenerate their soil 2012 Depending on the country, the age of and/or renovate their plantations. We are a coffee plantation can vary between particularly active in Mexico, Colombia and 5 and 50 years. Younger coffee trees Indonesia (see case study opposite).

2015 SUSTAINABILITY REPORT 40 Louis Dreyfus Company 41 PLATFORMS’ INSIGHT COTTON Challenging environmental and !nancial conditions can make it hard for farmers to maintain sustainable livelihoods. Louis Dreyfus Company actively educates and supports smallholder cotton growers to enable their progression. Here are two sample projects. As one of the world’s largest merchandizers of raw cotton by volume, our impact on the industry can be signi!cant. We PROMOTING have a duty to address SUSTAINABLE the issues a"ecting Promote PRODUCTION both our people and knowledge and IN KAZAKHSTAN the environment with use of Better Kazakhstan is a country with many smallholder farmers who achieve very great care. Cotton Initiative low yields. We operate two schemes Central to this is our standards to help address these issues. among brands, First, in early 2015 we hosted our first support for a number of BCI stakeholder meeting in Shymkent, initiatives that promote retailers and Kazakhstan. This was the launchpad for producers our pilot project as implementation and implement sustainable partners for BCI in Kazakhstan. With cotton production. support from BCI, we welcomed attendees from the cotton sector in Kazakhstan, officials from the Ministry of Agriculture, and LDC commercial partners from Tajikistan and Uzbekistan. We aim to promote We aim to increase volume As part of the project we: knowledge and use of of Better Cotton purchased INCREASING ZAMBIAN • employ agronomists to educate Better Cotton Initiative by 25%. SMALLHOLDERS’ CAPABILITIES the participating farmers • supply technical seeds For 3 years we have been committed Development was limited this year due to standards among brands, • provide high grade defoliant. to improving conditions for small-scale poor weather conditions. The guarantees retailers and producers. Zambian farmers. We continue to support we helped initiate in 2015 were invaluable The pilot starts with 37 participants over 70,000 growers in improving yields, to these farmers to help mitigate losses. and we hope to grow the project to quality and income. We provided weather insurance to 46,000 embed sustainable cotton production farmers over the course of the last year, country-wide. As well as our baseline offering of protecting them from losses incurred seeds and inputs, we supply tractors and Secondly, we continue our harvest through drought and/or excessive rainfall. insurance to 80 individual producers. This mechanization scheme, piloted in 2013. BETTER COTTON INITIATIVE &BCI' We will work hard to continually improve scheme started in 2014 with our joint We provide pickers at harvest time to the model going into 2016. 2015 saw a marked increase in our pushing more sustainable cotton through Here is our progress in 2015: venture partner, NWK Agriservices. ease labor challenges and enable picking participation with BCI. We continue to the supply chain. Louis Dreyfus Company remains at optimum times. Last year we supplied promote the work of this multi-stakeholder SUSTAINABLE COTTON PURCHASED The mechanization of farming processes Applying BCI principles, we aim to committed to adapting and developing a 20 mechanical pickers. In 2015, we put initiative. It aims to develop its Better Cotton (IN MT) allows producers to take full advantage merchandize Better Cotton more and resilient model that works for Zambia in 41 pickers at farmers’ disposal to increase as a sustainable, mainstream commodity of the growing season. Financing, backed more. Last year we set ourselves the goal order to raise yields and, consequently, their efficiency. This approach also allows 2015 91,613 by NWK, gives them mechanization that by establishing global standards. farmers’ incomes. us to grow our marketing capabilities for of increasing the volume of Better Cotton would otherwise be difficult to access. Our promotion of Better Cotton has led to we purchase by 25% year-on-year, every Kazakh cotton. 2014 43,767 The scheme builds growers’ capacity and increased sales in India, Turkey, Pakistan, year, for the next 5 years, using 2013 efficiency while providing access to global China, Brazil and numerous African as a baseline. markets through NWK’s sales network. countries. In 2016, we will continue to 2013 25,797 work hard to develop awareness of the BCI particularly in the US and Kazakhstan. Retailers continue to drive demand, which is linked to their public sustainability TARGET OF 250 commitments. Despite having little COTTON FARMERS influence over this key driver, we continue to push forward with our own ambitious targets. These are mainly focused on

2015 SUSTAINABILITY REPORT 42 Louis Dreyfus Company 43 PLATFORMS’ INSIGHT SOYBEANS

Soybeans are a crucial source of protein. We have Soybean meal, for expanded our example, is the source of sustainability over 80% of the world’s pro!le in meal protein. As demand soybeans increases, with a growing over the last population and changing 5 years. diets, the sustainability of soybean production becomes more and more important.

We are involved in 11% SUSTAINABLE SUSTAINABLY RENEWABLE BIODIESEL of global oilseeds (ows SOYBEANS SOURCING FROM In 2014 LDC Argentina committed to Importing compliant biodiesel requires a LDC RFS2 PRODUCTION Renewable Fuel Standard 2 (RFS2). This is Renewable Identification Number (RIN) with operations in 19 Brazil is home to 53% of the Earth’s NORTHERN BRAZIL a voluntary, private tool developed by the to be assigned. RIN attaches to a batch EPA SOYBEANS (IN K/MT) remaining tropical rainforest cover. countries. $is makes We continue our work on the North US Environmental Protection Agency (EPA) of biofuel to track its production, use, Currently housing at least 10% of the Corridor Project, developing a logistics to ensure sustainability of soya methyl and trading. 2015 780 us one of the world’s world’s known biodiversity, the Amazon system to transport soybeans and corn ester (biodiesel) and its inputs (biomass/ Biome spans 6.7 million km2. Brazil is also The quality assurance program shows that 2014 345 largest merchandizers of from origination areas to sea ports via the intermediate products). the top soybean producer in the world soybeans used to produce renewable fuel Tapajos and Amazon rivers. This is the soybeans. We therefore and, consequently, a victim of mass The scheme’s objective is to guarantee come from qualifying land that has not EPA BIODIESEL (IN K/MT) most economical and sustainable way deforestation, losing 17% of forest cover conformity to all requirements of the been deforested. This allows traceability have the scope to have for Brazil to export agricultural products. 2015 150 in the last 50 years. This is a serious US National Renewable Fuel Standard and segregation to be certified by a third a massive impact. threat to the biodiversity of the Amazon. External specialists and consultants are Program. This standard was introduced party throughout the entire processing 2014 65 helping us examine the locations where we in an effort to reduce greenhouse gas chain: reception, storage, production LDC is part of The Soya Moratorium, a Here are some examples plan to build our river terminals. This will emissions and to ensure that qualifying and loading. FARMS (ARGENTINA) key industry initiative to prevent major enable us to understand how to efficiently biofuels come from environmentally of our continued and merchants from selling soybeans that may Louis Dreyfus Company owns 2 biodiesel implement the project while positively sustainable sources. 2015 1390 be linked to deforestation in the Amazon. plants in General Lagos, Santa Fe, growing investment in impacting the people and communities that We therefore ensure we source our This market is regulated by US law Argentina. Each plant has the capacity 2014 580 surround it, and simultaneously minimizing sustainable soybeans. soybeans from farmers who comply with and a strict quality assurance program. to produce 900MT per day. environmental impact. HECTARES (ARGENTINA – IN K/MT) Brazilian labor and environmental law. 2015 1370 We work closely with the Brazilian TRACEABILITY & SEGREGATION IN THE CHAIN OF CUSTODY Association of Vegetable Oil Industries 2014 660 (ABIOVE) and ANEC to bring best agricultural practices to Brazilian farming WAREHOUSE (OWN) communities through the SoyPlus initiative. The initiative has performance requirements 2015 4 for sustainable soybeans that are specifically RFS2 APPROVED SOYBEAN TRUCKS LDC GENERAL VESSEL FARMS LAGOS PLANT 2014 4 adapted to Brazil’s environmental, social and economic situation. WAREHOUSES (THIRD PARTY)

APPROVED INTERMEDIATE 2015 1 STORAGE POINT 2014 0

2015 SUSTAINABILITY REPORT 44 Louis Dreyfus Company 45 LOOKING AHEAD LOOKING AHEAD

Our people are CONSTANTLY ADAPTING fundamental to Adaptability and proactive decision-making In 2011, Germany fundamentally changed are key in dealing with the pace of global energy policy. The ‘Energy Transition’ Louis Dreyfus Company’s change. As Robert Nahmani, Crush replaces non-sustainable energy supply sustainable development. Manager responsible for all agricultural with renewable sources. purchases and sales in Wittenberg, Matthias Balske, Energy Manager at By being proactive, open Germany explains, reacting to changes in Wittenberg, and his team therefore needed government policy and regulation provides and aware, they can renewable energy alongside considering a good example. ensure the company grid stability. Stable grid usage is rewarded Biofuels are at the forefront of this – plants that avoid load peaks can reclaim strategically tackles issues challenge. For instance, by 2020 the EU the grid usage fee. They managed to facing agribusiness. aims to have 10% of land transport fuel ensure stability through engaging a coming from renewable sources, such as specialist company to check the steam biofuels. Germany has further developed and condensation system annually. this mandate to reduce greenhouse gas With people like Robert and Matthias (GHG) emissions in the transport sector having responsibility for swift adaptation by 3.5% in 2016. as part of their everyday role, we can build Our response to such shifts is increasingly momentum on our environmental impact embedded in our operations. In 2014, in while meeting yield targets for each response to the German government’s commodity. Internal coordination of efforts approach, we fully audited the crushing and knowledge drives this forward. and biodiesel plant in Wittenberg against International Sustainability and Carbon Certification (ISCC) standards. This resulted in a rapid shift to producing Rapeseed Methyl Ester (a key component in biofuel) with 60% lower GHG emissions than conventional diesel.

Robert Nahmani Matthias Balske Ensuring each person’s COMMUNICATING BEST PRACTICE EDUCATING OUR PEOPLE role has sustainability Regular analyses are integral to consistent We must work to continuously implement Our core duty to customers is to deliver A further extension of how we can benefit activity embedded in development and improvement. We must programs like these to embed sustainable products safely and reliably. Educating our communities involves supporting provision be proactive in reviewing and evaluating practices. This is a long-term commitment people is key to enriching our company of formal education to address the broken it is central to enabling our progress so that we can ensure and we must persist because, as Nam-Han and fulfilling this obligation to our clients. school-to-work pathway. Argentina is an success and efficiency at each step. Chai recognises, there is no easy, fast track example we wish to build from, where we our people to make a It is estimated that by 2020 there will to sustainable business. have opened a primary and secondary China’s energy team has the goal of be 95 million more low-skilled workers di"erence. Here is our school, giving the opportunity for LDC reducing energy usage and GHG emissions than there are low-skilled jobs available. employees to complete their education continuing journey of at all our assets in that country. With such Updating the skills of just a small (see page 32). Such education, plus a large remit, work has been driven by percentage of these workers will have learning from people training for farmers, can help build both routine communication of best practice. a positive effect on the economy and in varying roles on sustainable communities and sustainable those workers’ livelihoods. the opportunities and Since mid-2015, the team has executed farming practices. 20 energy reduction projects, generating Part of this comes from ensuring LDC Our aim is for our on-going support challenges of building considerable savings and reducing people are educated in all aspects of to bring about continuous improvement emissions on the back of proactively safety at work. Poltak Pardede, SHE sustainability into day- all around our global operations. sharing know-how. For example, Manager at Lampung biodiesel facility to-day business practices. China Industrial Director, Nam-Han notes the importance of this education. We are optimistic about our ability Chai observed the value of the energy Safety induction and other safety training to create positive change through workshop held at Don Guan in November is obligatory for all employees before embedding adaptability, best practice 2015. Participants shared best practices starting work at LDC. Our ongoing and safe and smart working patterns and personal experiences, which enabled success in meeting safety targets (see in our business and beyond. As always, them to develop a clear and thorough page 12) is due to programmes such as we invite any feedback that can help energy master plan for 2016. Nam-Han Chai “Back to Basics” and “Safety Starts With us to improve further. Me” – initiatives focused on teaching proactive safety to all our people. Not only do they learn but their learning can be passed on to the wider community.

2015 SUSTAINABILITY REPORT 46 Louis Dreyfus Company 47 REGIONAL HEAD OFFICES1

1. HEAD OFFICE 3. NORTH AMERICA 5. NORTH LATIN AMERICA LOUIS DREYFUS COMPANY B.V. LOUIS DREYFUS COMPANY LLC LOUIS DREYFUS COMPANY Westblaak 92 40 Danbury Road BRASIL S.A. 3012 KM Rotterdam Wilton, Connecticut 06897-0810 Avenida Brigadeiro Faria Lima 1355, Netherlands United States of America 12° ao 14° andar, Pinheiros Phone: +31 10 411 0480 Phone: +1 203 761 2000 01452-919 – São Paulo – SP Brazil 2. EUROPE, MIDDLE EAST 4. SOUTH & WEST Phone: +55 11 3039 6700 & AFRICA LATIN AMERICA LOUIS DREYFUS COMPANY LDC ARGENTINA S.A. 6. ASIA SUISSE S.A. Olga Cossettini 240, 2° Piso LOUIS DREYFUS COMPANY Swissair Center Buenos Aires C1107CCF ASIA PTE. LTD. 29 route de l’Aéroport – P.O. Box 236 Argentina 12 Marina Boulevard 1215 Geneva 15 Phone: +54 11 4324 6900 Marina Bay Financial Centre Switzerland Tower 3, #33-03 Phone: +41 58 688 2700 Singapore 018982 Singapore Phone: +65 6735 9700 3 1

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2015 SUSTAINABILITY REPORT 48 Louis Dreyfus Company Louis Dreyfus Company B.V. Westblaak 92 3012 KM Rotterdam Netherlands www.ldcom.com