2019 Sustainability Report Summarized version Message from the CEO

Our Sustainability Report is an important transparency tool where we reaffirm to our stakeholders our commitments and share our achievements, challenges, and main actions in the context of the businesses in which we operate.

Today, we are the largest company in terms of certified soy volume in the world, recognized by several specialized press bodies, by our customers and consumers. This level, while bringing us great satisfaction, expands our responsibility towards our stakeholders. We invest more and more in occupational health and safety and the well-being of our employees, as well as in innovation and continuous improvement, while strengthening our integrity, to maintain a position of leadership in a very competitive market.

It is with these differentials that we will enter 2020 to face the challenges and achieve even better results.

Thank you and enjoy your reading!

Judiney Carvalho de Souza

AMAGGI CEO

2 Sustainability Report 2019 Presentation

AMAGGI presents a summarized version of the 2019 Sustainability Report and shares with its stakeholders the main information regarding the social, environmental, and governance aspects organized around its 2025 Plan – an initiative developed based on its Global Sustainability Position with 2025 as a horizon.

The four strategic blocks of the 2025 Plan – Improving The four strategic governance and management, Promoting a sustainable value chain, Developing with the area, and Innovating blocks of the 2025 Plan sustainable products and solutions – encompass the issues that are currently most relevant to the company encompass the issues and its stakeholders. Each of them make up a chapter of that are currently most the report, showing how each block relates in practice with the material topics. This report also reaffirms AMAGGI´s relevant to the company commitment to the Global Compact, as well as with the United Nations Sustainable Development Goals. and its stakeholders.

The information contained in this report refers to operations at AMAGGI units installed in and over which the company has full control, including leased ones, between January 1 and December 31, 2019. This document does not provide data on companies that are not wholly controlled by AMAGGI, such as joint ventures, as well as AL5 Bank1.

To read the full version and complementary content, visit AMAGGI website. 1 At the end of 2019, AMAGGI Financial Services changes its name to AL% Bank, with a new brand and visual identity. Profile and operations

Founded in 1977, AMAGGI operates in an integrated and synergistic way throughout the agribusiness chain: origination and commercialization of grains and inputs, port operations, river and road transport, agricultural production, and generation and commercialization of electricity. It maintains a presence in all regions of Brazil, in addition to maintaining offices and units in different countries: Argentina, Paraguay, The Netherlands, Norway, Switzerland and China.

Kelly Vanessa Veiga Monteiro is part of the team of employees Latest technology and good agricultural practices guarantee of the AMAGGI fleet. Photo: AMAGGI Archive high product quality. Photo: AMAGGI Archive

4 Sustainability Report 2019 With operations in four business areas The only agribusiness representative among (Commodities, Agro, Logistics and Operations the 36 finalists in the Enterprise category at and Energy), AMAGGI is among the main the first edition of the Global Compact’s Brazil exporting companies in Brazil. Its products are developed through the use of the latest Network SDG Award. technology and good agricultural practices, which guarantees its high quality. It is recognized as a company that grows together with society, working towards sustainable development. It does this not only through solid and consistent business performance, but also by acting ethically, socially, and environmentally responsible, and through its Private Social Investment Policy.

USD 4.76 billion in annual revenue

Soybeans after harvest. Photo: AMAGGI Archive

Profile and operations 5 Acting in Brazil Tapajós Corridor (Barcarena) Road + waterway São Luis do Maranhão Corridor

3 (Tegram) Madeira Corridor Road + rail (Itacoatiara) Road + waterway Amazonas River 12

Manaus 21 Tapajós River Madeira River 34 27 Porto Velho

2 17 35 10 37 13 33 4 42 6 38 41 40 19 26 8 18 15 36 1 9 11 31 5 39 Cuiabá 24 7 20 25 30 14 29

16 32 Guarujá Corridor 22 (Guarujá Bulk Terminal) 75% of the volume road + rail integration. The rest, only road. São Francisco Corridor 23 60% rail + road integration

28 Termasa e Tegrasa Corridor 90% of road transport. The rest, is divided between rail + waterway. Headquarters 1 Água Boa 17 Matupá 33 São Félix do Araguaia

2 Ariquemes São Francisco do Sul Plant 18 34

3 Boa Vista 19 Nova Ubiratã 35 São José do Xingu Commercial Office 4 20 Novo Horizonte 36

Farm 5 21 Paragominas 37 Sinop

6 Campos de Júlio/AGD 38 Warehouse 22 Paranaguá

7 Campo Verde 39 Tangará da Serra Port 23 Passo Fundo Terminal 8 Cerejeiras 40 24 9 Shipyard 25 41 Vera 10 Small 26 Querência 42 Vilhena Hydroelectric Power 11 27 Redenção

12 Itacoatiara 28 Rio Grande

13 29 Rio Verde Fluvial Corridor 14 30 Rondonópolis

Highway 15 31

Railroad 16 Maringá 32 Santos

Profile and operations 7 Products, byproducts, and inputs

Products Byproducts

Soybean Soybean Soybeans hulls meal

Degummed Corn soybean oil Cottonseed

Cotton Soy lecithin

Inputs

Soybean Fertilizers seeds

Corn Defensive seed Agents

8 Sustainability Report 2019 Institutional Commitments AMAGGI maintained all of its institutional commitments Labor, AMAGGI needs to be accountable in 2019. For several of them, such as the Na Mão Certa through annual monitoring reports or undergo Program, Soy Moratorium, Global Compact, Empresa third party verification, in order to demonstrate Amiga da Criança, Green Grain Protocol, Business Pact its performance and measure the results and for Integrity and National Pact for the Eradication of Slave progress achieved in each commitment.

Moratória da Soja

Princípios Empresariais para Protocolo Verde Alimentos e Agricultura (PEAA) dos Grãos

O Governo do Estado do Pará e o Ministério Público Federal, ad referendum do Comitê Gestor do Protocolo Verde dos Grãos - do qual parcipam o Governo do Estado do Pará, Ministério Público Federal, Municípios, Endades de classe e empresas da cadeia produva dos grãos - comunicam aos signatários do protocolo e produtores em geral a PRORROGAÇÃO, até 30 de setembro de 2015, do prazo fixado para apresentação da regularização dos polígonos de PRODES acima de 100 (cem) hectares, de forma única ou acumulava, incidentes nos imóveis rurais fornecedores de grãos.

Nos úlmos meses, diversos parceiros do Protocolo envidaram esforços para construir uma solução 9 técnica e jurídica para a regularização do PRODES, que combinasse transparência e precisãoInstitutional dos Commitments dados com simplicidade de acesso e baixo custo ao produtor que deseja se regularizar.

Assim, até a data acima prevista, o Governo do Estado do Pará, através da Secretaria de Estado de Meio Ambiente e Sustentabilidade (Semas), lançará o Portal de Regularização do PRODES, bem como editará o Programa de Regularização Ambiental (PRA), cujo texto já passou por consulta pública e será publicado em breve.

Com tais instrumentos, todos os imóveis rurais poderão se regularizar com rapidez, transparência e segurança, dentro dos seguintes princípios:

a) expressa proibição de ulização da área desmatada detectada pelo PRODES sem autorização do órgão competente, após Julho de 2008; b) pagamento de indenização cível por danos ao meio ambiente, calculada proporcionalmente em relação à área ilegalmente desmatada, nos termos da legislação vigente; c) apresentação da LAR – Licença de Avidade Rural ou do protocolo do seu requerimento; d) não serão tolerados os desmatamentos ilegais recentes, ocorridos a parr de 2014.

Enquanto o prazo acima previsto esver em curso, os signatários do Protocolo poderão receber, adquirir e comercializar os produtos oriundos desses imóveis, estando isento de responsabilização noâmbito do Protocolo Verde dos Grãos.

Para os contratos futuros, orientamos os signatários do Protocolo a inserir uma cláusula resoluva em seus contratos, incidente na ocorrência de novos desmatamentos ou dos desmatamentos detectados pelo PRODES após 2008 e não regularizados, considerando que a regularização, via Portal que será lançado pela SEMAS, dependerá, única e exclusivamente, do interesse dos produtores.

Belém, 04 de agosto de 2015. Initiatives and Partnerships GRI 102-13

Due to its belief in the importance of working together for responsible action, AMAGGI participates in initiatives and partnerships that provide great value and show potential for mobilization

10 Sustainability Report 2019 Grupo de Trabalho do Cerrado (GTC)

CDP Forest corresponds to one of the largest and most important questionnaires on forest conservation. Photo: AMAGGI Archive.

Pilot Project of the no-till seeding technique, called muvuca, on the Tanguro Farm, in Querência (MT). Photo: AMAGGI Archive.

Initiatives and Partnerships 11 2025 Strategic Planning for Sustainability

AMAGGI’s sustainability strategy is based on its mission, vision and values, on the decoding of business strategies, institutional commitments, with knowledge regarding impacts, risks and opportunities, and the company’s materiality.

The company operates so that sustainability permeates the entire management, operations and value chain process, with the objective of minimizing socio-environmental risks and enhancing the opportunities and positive impacts of the business.

To provide clarity and unify its sustainability strategy at regional and global level, AMAGGI launched its Global Sustainability Positioning in 2017. Based on AMAGGI’s Global Sustainability Forum held with AMAGGI managers during the process review of materiality and Global Sustainability Positioning. Photo: AMAGGI Archive.

12 Sustainability Report 2019 Based on AMAGGI’s Global Sustainability Positioning, the Sustainability Plan was created with an outlook through 2025 called Plan 2025. Organized in four strategic blocks, it addresses the most relevant issues related to AMAGGI and its stakeholders, including current material topics.

In 2019, in order to update and deepen the AMAGGI priority topics and sustainability challenges, it promoted a general review of the Sustainability Plan with an outlook through 2025, with the participation of leaders from various areas of the company and consultations with several other internal and external stakeholders along with the materiality review.

Developing Improving governance with the area and management

2025 Plan

Promoting a Innovating sustainable sustainable products value chain and solutions Improving governance and management

Risk Management and Compliance

The AMAGGI Compliance Committee has been operating since 2015, when the company’s compliance area began its structuring process. Two years later, the Compliance Department was created to consolidate ethical and transparency principles. Existing programs, policies, and initiatives were perfected, resulting in the 2018 AMAGGI Integrity Policy, which reinforces integrity as a value and the standard of behavior expected from the company’s employees and business partners.

14 Sustainability Report 2019 In 2019, AMAGGI implemented its Compliance/Integrity Program, with the objective of strengthening the company’s governance and protecting its business.

Currently, AMAGGI has an adequate compliance structure to meet the demands and activities related to integrity and ethics programs and policies within the company.

Reports of potential violations of the Code, company policies and current legislation are received by the Reporting Channel, which, since 2017, has had independent service in Portuguese, English and Spanish, and is available to all company stakeholders, both internal and external. In 2019, a total of 305 reports and Collaborator in AMAGGI’s corporate environment in complaints were registered, of which 96% were completed Cuiabá (MT). Photo: AMAGGI Archive. by December 2019 and 4% were still in the investigation process at the end of last year. All complaints follow the analysis process of the Ethics Committee and AMAGGI believes that the way a company the Corporate Security area in an agile, confidential, positions itself in the market reflects its and independent manner, without retaliation for the values and its human capital. Therefore, whistleblower. one of the company’s commitments is to As part of the implementation of the Compliance/ continually invest in people development, Integrity Program, the company instituted a Global Risk process improvements, preventive risk Management Policy in 2018. It applies to domestic and management, and legal compliance. international operations, seeking to adapt the company to Other AMAGGI Governance and a volatile and evolving external environment of new and Management topics can be consulted emerging risks. in the full version of this report on the company’s website: www.amaggi.com.br.

Improving governance and management 15 People Management

AMAGGI ended 2019 with 6,320 employees and 298 outsourced workers. These figures show an increase of around 9.8% in the number of company employees, compared to the previous year.

All company employees are covered by collective bargaining agreements established with the unions and federations of the respective categories. In 2019 all negotiations were concluded on schedule and the agreements established in the month of the base date were applied. Supplies area workshop held at the AMAGGI. Photo: AMAGGI Archive. To follow the main personnel challenges at AMAGGI, which involves attracting and retaining talent and developing people, the company promotes In 2019, approximately different programs and initiatives: Young Talent Program, Young Apprentice Program, Assessment, 93% of employees and Competency Assessment, and a Conversation about 95% of managers at all people are some of them. At the end of 2019, the corporate education department, guided by the motto AMAGGI units received “Transformation is what Makes us Grow,” launched the new HR Portal, developed to improve employee access compliance training to important information for their development and career management. regarding the Global Policy for Corporate Risk Management.

16 Sustainability Report 2019 In 2019, the Corporate Education department provided online training for employees of all levels. One of the highlights of the year was the construction of the first “Connection Hall” in Itacoatiara.

Occupational Behavioral Safety health and safety Program In line with its commitment to caring for people, In the units where it is implemented, the a AMAGGI Occupational Health and Safety company obtained reductions in the Policy pillar is to ensure the preservation of frequency rate percentage of: the health and physical integrity of everyone who interacts with its operations. The 35,82% in 2016 Behavioral Safety Program has contributed to significantly reducing the rate of occupational 15,57% in 2017 accidents, along with its greater objective: to work on a culture of prevention, through the 7,65% in 2018 awareness of employees and the resulting change in behavior. 29,81% in 2019

Improving governance and management 17 Socio-environmental Socio-environmental Management certifications in company units

AMAGGI is committed to acting in a socially just, In 2019, all AMAGGI socio-environmental environmentally responsible, and economically viable manner. certifications were maintained (ISO 14001: 2015; This commitment is materialized through its Social and A.R.S; RTRS; and ProTerra) and ensured through Environmental Policy and the AMAGGI Socioenvironmental third party auditing. All cotton bales produced at Management (GSA) system, which is based on the the Água Quente and Tucunaré farms in Sapezal requirements of NBR 16001: 2012 (social responsibility) and (MT) and Itamarati in Campo Novo do Parecis integrates the ISO 14001: 2015 (environment) standards and (MT) received the ABR/BCI seal, corresponding A.R.S. certification. (AMAGGI Responsible Standard), RTRS to 89,277 thousand hectares of cotton. The (Round Table on Responsible Soy), ProTerra and ABR/BCI RTRS certification was obtained in the mass (Responsible Brazilian Cotton/Better Cotton Initiative). balance modality for 115.2 thousand tons of soy at AMAGGI units. In addition, the ProTerra Standard AMAGGI among the 5 most certification was obtained for 432.8 thousand tons sustainable agribusiness of soy at AMAGGI units. For more information about producer certification see item xxxx. companies due to the quality of its socio-environmental management processes, in the 2019 Exame Sustainability Guide.

Other results in 2019: The ProTerra Standard certification was All cotton bales produced at the Água obtained for 432.8 thousand tons of soy at Quente and Tucunaré farms in Sapezal AMAGGI units. (MT) and Itamarati in Campo Novo do The RTRS certification was obtained in the Parecis (MT) received the ABR/BCI seal, mass balance modality for 115.2 thousand corresponding to 89,277 thousand tons of soy at Tanguro and Itamarati farms. hectares of cotton.

18 Sustainability Report 2019 Pantanal, Amazon and Cerrado biomes. Of this percentage of preserved areas, 40% are located in its own areas, of which 179 hectares is APP undergoing a recovery process; and 8% of the total protected area is in areas dedicated to compensation.

Area recovery

AMAGGI was one of the only two In addition to its commitment to the preservation of natural companies in Brazil to obtain an areas, AMAGGI invests in the recovery of Permanent A- grade from CDP Forest (in Preservation Areas (APPs) on its own farms, including the world, only eight companies maintaining seedling nurseries in the Amazon biome, which in 2019 produced around 51,200 seedlings of obtained the maximum A grade). various forest species.

The company also develops, through the Caminhos da Biodiversity protection Semente (Seed Paths) initiative, an experiment to leverage AMAGGI’s commitment to environmental preservation the no-till seeding technique, called muvuca, with and the protection of biodiversity, in addition to green fertilizer species and fruit, pioneer, and late trees. the search for a chain free from deforestation and Because they have different succession stages, they conversion, is related to its own business. The first step allow the area to structure quickly, attracting pollinating in meeting these commitments is to be in full compliance and dispersing animals. with Brazilian law. All AMAGGI properties are maintained in accordance with the Brazilian Forest Code and other environmental laws in Brazil. See more information on the In 2019, AMAGGI sowed more than topic of searching for a chain free of deforestation and 590 kg of seeds in its Permanent conversion on page 27. Preservation Areas of the most varied Of a total of approximately 289 thousand hectares of its own areas (including agricultural and reforestation species. The expectation is that, in the units) AMAGGI maintains approximately 138 thousand hectares of protected areas, including Legal Reserve future, there will be a forest with more (RL), Permanent Preservation Areas (APPs) and surplus than 40 native species. RL, representing 48% of preserved areas located in the

Improving governance and management 19 Promoting a sustainable value chain

AMAGGI is committed to contributing to the development of a responsible production chain through the dissemination of knowledge and the sharing of good practices, working in partnership and promoting decent work and respect for Human Rights.

20 Sustainability Report 2019 Responsible supplier management

At AMMAGI, all supply contracts have specific clauses platform called Cargueiro, which is freight contracting regarding respect for human rights, such as the non- application, through which the transporter obtains exploitation of child, degrading, or slave-like labor, in his loading order by mobile phone or computer, thus addition to specific clauses addressing anti-corruption providing a significant improvement in transportation liability for potential environmental damage. supplier management.

For suppliers of supplies considered socially and/or environmentally critical, AMAGGI adopts criteria that are jointly assessed by the Supply and Sustainability departments, along with the units. In 2019, the Corporate Sustainability area carried out 203 socio- environmental assessments of suppliers of products and/or services considered to be environmentally critical. Of the total of 203 evaluated suppliers, 39 were considered restricted due to the lack of necessary documentation for certification as per the region and activity developed. There were also 31 assessments related to new projects.

The management of transportation suppliers is carried out by the Corporate Logistics area – in 2019 alone, 3,424 transportation companies provided services to AMAGGI. The company innovated and implemented a transportation contracting and management Cotton bales at Itamarati farm, in Campo Novo do Parecis (MT). Photo: AMAGGI Archive

Promoting a sustainable value chain 21 Value chain GRI 102-9, 103-1, 103-2, 308-1, 308-2, 414-1, 414-2 AMAGGI operates in an extensive value chain in which the company and its partners, through business, create value for society and help to develop the territory.

Resources Capitals

Human Value generation proposal Our people: own employees and third parties in farms, factories, warehouses, offices, ports, shipyards and carriers.

Natural Environmental commitment: actions and Strategy investments aimed at environmental preservation and protection of biodiversity. Sustainability Plan 2025

Structure: factories, agricultural production and Manufactured reforestation farms, sales offices, nurseries and 1 Raw material suppliers Contribution to the development seeders, industrial and other equipment, trucks, of a production chain responsible boats, terminals, etc. for sharing good practices and acting in partnership.

Intellectual investment in new practices, Innovation: 4 technologies and processes to make business Industries Our soybean crushing industries work with the more efficient and sustainable. strictest product quality standards.

Investments: in the acquisition and lease of Financial land, expansion of factories, purchase of inputs, materials and services, among others.

5 Logistics The diversity of modes of Social and our logistics operation allows relationship us to operate efficiently on Social action: investments and other social all our routes. responsibility programs and actions in the regions where the company is present.

22 Sustainability Report 2019 Capitais Resultados

Human Human development: we create jobs and invest in development of about 6,300 employees in Improving Promoting a 42 municipalities. governance and sustainable management value chain Natural Environment: world leadership in socio-environmental Innovating Developing certificationsinternationally recognized and in forest sustainable with the area management by CDP Forest. products and solutions

2 Manufactured Farms Expansion: growth of more than 100 thousand Our farms use the best agricultural practices on the hectares of productive area, with the acquisition of market in the production of new farms. soybeans, corn and cotton.

Intelectual Technology: improvement of the traceability platform ORIGINAR 2.0, which allows monitoring 3 Warehouses and evaluating rural producers based on socio- environmental criteria. Capacity to store around 2.6 million tons of grain per year. Financial Investments in assets: $ 152.59 million in 2019. 6 Ports 7 Clients Guarantee of a product with quality and socio- Operations in three Social and environmental commitment relationship Brazilian ports ensure certified by the most Social investment: R $ 4.3 million by Fundação André that products reach important global initiatives. and Lucia Maggi in actions to promote local and regional customers worldwide. development.

Promoting a sustainable value chain 23 Responsible Management of Logistics Program Grain and Fiber suppliers

Created in 2012, the program seeks to minimize the social, In the AMAGGI grain and fiber supply chain there environmental and economic impacts resulting from the road are approximately 4,500 rural producers, and and river transport of its products, and provide well-being and in order to guarantee responsible purchases, cultivate a good relationship with company transport suppliers 100% of them must meet the company’s socio- – now also with waterways and drivers of the company owned environmental criteria. In 2019, 1,467 registrations for fleet. In 2019, the continuing education actions and showing grain and fiber suppliers were blocked due to some appreciation for drivers in Porto Velho (RO) stood out. They type of socio-environmental restriction. All blocks addressed topics such as safety, combating the sexual are automated in the company systems. exploitation of children and adolescents, the environment, while Socio-environmental assessments of suppliers that delivering information booklets, with the participation of 175 offer risks are carried out using the ORIGINAR tool, drivers, including company and outsourced drivers. In addition, which, after considering their sustainability criteria, in Vilhena (RO), training was conducted for drivers of the generates a socio-environmental statement of the company owned fleet to act as protection agents for children property and the producer. and adolescents on the highways.

Road transport suppliers receive Na Mão Certa guidance. Photo: AMAGGI Archive.

24 Sustainability Report 2019 Producer certification

Round Table on Responsible Soy (RTRS) 41 rural properties belonging to certified 147.1 thousand tons of soy from 13 properties partner producers by the Round Table on certified in the Mass Balance mode. Responsible Soy (RTRS). 55 partner producer farms certified by the AMAGGI Responsible Standard (A.R.S.). 551.7 thousand tons of soy from 28 rural properties certified in the EU RED modality. 534.7 thousand tons of soy from 177 partner producers certified by ProTerra.

Knowledge dissemination

One of the ways in which AMAGGI contributes to the development of a responsible value chain in the locations where it operates is through the dissemination of knowledge. The company accomplishes this purpose through several actions, such as: Technological Circuit, the Responsible Logistics Program, among others.

In 2019, the fourth edition of the Soy Technological Circuit was held, with rural producers from 22 locations in the states of and Rondônia. The field events gathered 2,179 people, representing approximately 1.6 million hectares of planted area in both states. That same year, the Corn Partner rural producers received symbolic certificate regarding the production of RTRS soy on their properties. Technology Circuit was held, bringing together 1,124 people in Photo: AMAGGI Archive. 16 locations, representing approximately 1.1 million hectares.

Promoting a sustainable value chain 25 In order to ensure the adoption of responsible practices throughout its production and supply chain, AMAGGI also carries out a direct and continuous effort to monitor and guide rural producers, regarding compliance with legal requirements and continuous improvement of socio- environmental management, including responsible working conditions, good agricultural practices, and restoration of degraded areas. This guidance, carried out mainly through technical visits, internal audits, and a socio-environmental diagnosis, contributes to the maintenance of the socio- environmental certifications earned by the producers or to a greater adherence to them.

Partner rural producers participate in the Technological Circuit 19/20 harvest. Photo: AMAGGI Archive.

Technological Circuit 2019 In 2019, the Soybean and Corn Technology Circuit brought together approximately 3,300 people in the states of Mato Grosso and Rondônia, giving producers information on how to be more efficient and sustainable on their properties.

26 Sustainability Report 2019 Towards a deforestation and conversion free chain

AMAGGI has been working hard to understand the 3. 100% traceability of a certified total of more than 2 opportunities for agricultural expansion without million 300 thousand tons of soy at corporate owned deforestation or conversion of natural areas, as well as and supplier farms; identifying opportunities to promote the sharing of this knowledge with its supply chain. 4. More than 3 thousand direct suppliers are tracked, representing 86% of the active supplier chain. In order to provide clarity regarding the scope of AMAGGI’s commitment to combat deforestation, the challenges and means to achieve increasingly sustainable agriculture, in 2019 AMAGGI launched the new version of the commitment, entitled Global Positioning Towards a Grain Chain Free from Deforestation and Conversion.

It also launched the 2018 Progress Report for AMAGGI Global Sustainability Positioning: Commitment “Towards a Deforestation Free Grain Chain” was published, which describes important achievements of the Company, highlighting the following:

1. 100% of its own production areas have socio- environmental certification; In 2019, AMAGGI released its 2. About 22% of the total volume sold by AMAGGI is first progress report on the certified, 19% with zero deforestation standards; commitment to a deforestation free production chain.

Promoting a sustainable value chain 27 Developing with the area

AMAGGI is present in Brazil with 74 units in 42 municipalities in nine states, including farms, warehouses, sales offices, factories, fleet, carriers, shipyards and ports. However, the scope of its operations is even greater, since the company maintains operations and commercial relations in all regions of the country and abroad.

AMAGGI contributes in several ways to development in the regions where it is present: the offer of decent and fair wages, the movement of the local economy through the acquisition of goods and services, the collection of fees and taxes for the municipalities, and income

28 Sustainability Report 2019 generation for local producers. In 2019, one of AMAGGI’s André and Lucia Maggi Foundation main actions in this field was the establishment of its own fleet of trucks (300 vehicles) to serve western Mato An institution with no economic purpose, the André e Lucia Grosso and Rondônia. In these states, local drivers were Maggi Foundation (FALM) is responsible for managing hired, generating employment and income in the regions. AMAGGI’s Private Social Investment (ISP). AMAGGI’s contribution to local and regional development Headquartered in Cuiabá (MT), it also has two branches: is driven by its Private Social Investment Policy, with the André and Lucia Maggi Foundation Collective Space, actions planned and executed by the André and Lucia in Rondonópolis (MT), and the Velha Serpa Cultural Maggi Foundation (details on the institution’s governance, Center, in Itacoatiara (AM). In addition, it develops actions transparency and management are available on the website: and projects in other municipalities and strategic regions https://www.fundacaoandreeluciamaggi.org.br/). for AMAGGI and the Foundation itself. Its focus is on strengthening the social role of young people and leaders for sustainable local development. In 2019, about 80% of the contracted suppliers were from the regions where the company operates.

Considering that local and regional development should be built collectively, AMAGGI, in addition to the Foundation’s activities, seeks to establish partnerships and participate in initiatives, projects, and forums to address regional and jurisdictional approaches, including social, environmental and economic issues.

Immersion of young people in the Global Challenge, a project André and Lucia Maggi Foundation. Photo: AMAGGI Archive.

Growing with the location 29 BRL 1,377,440.78 of revenue (transfer from AMAGGI)

In 2019, the activities of the André and Lucia Maggi Foundation reached 45% of the territory where AMAGGI operates.

The Foundation also became a member of the Inter-American Network of Foundations and Business Actions for Grassroots Development (RedEAmérica).

20 social projects selected with the 735 people participated in the activities participation of 73 people in the first edition developed at Andre and Lucia Maggi of the Global Challenge an initiative for Foundation Collective Space in young people between 15 and 29 years old. Rondonópolis (MT) and at the Velha Serpa Cultural Center (AM).

In 2019, the Foundation implemented projects with The collective spaces managed by the André and the objective of contributing to the strengthening of Lucia Maggi Foundation are places of interaction that social leadership. favor the dialogue, trust, proactivity, and autonomy for young people and local leaders in each activity Global Challenge is an tender notice that seeks promoted. In 2019, Casa Maggica, in Rondonópolis (MT), to encourage 20 social actions, projects and/or was renamed the Andre and Lucia Maggi Foundation initiatives led by young people between 15 and Collective Space, and involved 235 people in the 29 years old, aimed at solving problems they activities developed. And in Itacoatiara, the cultural and identify in their community. In the first edition, educational workshops and activities held at the Velha in 2019, 20 projects were selected, with the Serpa Cultural Center involved more than 500 people. participation of 73 people.

30 Sustainability Report 2019 In order to contribute to local and human development, expanding the opportunity for young people from all over the country, FALM, in partnership with AMAGGI, offered 23 full scholarships for higher education in Agrocomputing Technology in 2019, carried out by FATEC (Technology College), of SENAI-MT (National Service of Industrial Learning), in Rondonópolis (MT). In addition to tuition assistance, 20 of these grants will have a monthly allowance, corresponding to a minimum Young people participate in immersion in the Global Challenge. Photo: AMAGGI Archive. wage, for the entire duration of the course (18 months, full time). The course was built based on suggestions Workshops and activities aimed from the sector and was developed with the help of at strengthening social leadership AMAGGI’s DHO and Agro areas. The objective is to They focus on contributing to the strengthening of social meet a demand for qualified labor, which in the future leadership in young people, through actions that create may act in areas focused on the solution of problems opportunities for young people from 15 to 29 years old to in the field and industry, mainly regarding data analysis, discover their potential for transformation, encouraging artificial intelligence, instrumentation, information the formation of positive youth leadership. In 2019, the processing and input for decision making. Foundation offered workshops through partner institutions in Cuiabá, involving 63 participants, with the aim of promoting creative exchanges among young people of different age groups. In Rondonópolis and Itacoatiara, these activities are carried out in the Collective Spaces of FALM. In 2019, BRL 4,333,112.03 was invested by André and Lucia Maggi FALM also worked to align its actions with the company’s operations in the communities where it has operations. Foundation in actions and projects As well as in the cities of Itacoatiara (AM), São Félix do to strengthen the social leadership Araguaia (MT) and Porto Velho (RO), which will receive assistance for up to three years regarding topics that were of young people and leaders for raised and validated with the company and communities. sustainable local development. This work began in 2019 in the cities of Itacoatiara (AM), São Félix do Araguaia (MT) and Porto Velho (RO).

Growing with the location 31 Innovating sustainable products and solutions

AMAGGI has been attentive to new demands and market trends which allow greater production and growth with AMAGGI has also established responsibility and sustainability for present and future partnerships with startups to bring generations. In light of this, the company has invested in new practices, technologies, and processes to make the innovative and disruptive solutions activities, of both its own business and agribusiness as to agriculture in Brazil. a whole, more efficient and sustainable, with economic, social, and environmental benefits. In 2019, the company took action to prioritize the issue even more within the organization. This included the official creation of an Innovation area. The objective is to centralize AMAGGI’s relationship with partners and suppliers in this field, and facilitating the development of new processes, technologies, and solutions for its various activities.

32 Sustainability Report 2019 AMAGGI also supported, through its newly created innovation area, the launch of AgriHub Space, the first agricultural innovation center in the state, in partnership with the Federation of Agriculture and Livestock of the State of Mato Grosso (FAMATO). The objective is to bring customized solutions for agriculture in Mato Grosso, which is one of the most prominent states in agricultural production in Brazil. AgriHub Space is the first agricultural innovation center in the state of Mato Grosso (MT). Photo: AMAGGI Archive.

New agricultural practices efficient, modern, and economical models, with engines that Climatology - AMMAGI created an intelligent and pollute less and that use more sustainable fuels. Currently, integrated platform with climatological data, which allows 100% of the fleet uses diesel with lower sulfur content and field activities and agricultural equipment performance to 10% biodiesel in the mixture with diesel. In addition, in 2019 be managed. The expectation is a continuous reduction there was a modal shift in soybean planting: due to the in the consumption of inputs and an increase in the technology that allows four planters to be joined, totaling quality of the plantations. The company has also made 60 planting lines, it was possible to reduce the number of efforts to achieve real time monitoring and analysis of tractors needed for operations in the field. the microclimate in the productive area, with the first All AMAGGI farms have researchers to investigate pests meteorological radar dedicated to agriculture in the state and diseases that can affect crops. In the case of the of Mato Grosso. Tanguro, Itamarati and Tucunaré farms, there are still Connnectivity in the field - With a pilot project already in experimental research stations with this objective. And operation at the Tucunaré farm, located in the municipality as a result of these efforts, important advances have of Sapezal (MT), the company brings intelligence to its already been achieved, such as the development of business by obtaining information in real time via IoT biological control, a practice that has the potential to reduce (Internet of Things) solution, connecting the machinery in the application of chemical pesticides, which increases the fields through a carrier network to improve processes product safety and reduces greenhouse gas emissions. and increase operational quality. It should also be noted that AMAGGI uses phytosanitary control and integrated pest management (IPM), allowing Efficiency with machinery and best applications of natural and chemical pesticides to be agricultural practices - AMAGGI has also invested in carried out only when and where there is a need. AMAGGI replacing its fleet of agricultural machinery with more also seeks to maximize land use with crop rotation.

Innovating sustainable products and solutions 33 In addition, AMAGGI farms do not use irrigation for The company seeks to continually refine its understanding cultivation. The crops receive only rainwater, with plantings of the impacts represented by its chain, adding new and harvests planned to occur according to the local sources each year to its emissions inventory, while seeking hydrological cycle. The local climate allows the cultivation to mitigate them. of two crops in the same year.

Climate Change Management In 2019, AMAGGI continued to work on three major In 2019, about 72% of fronts related to climate change, in line with its 2025 Plan: managing greenhouse gas emissions, mitigating the energy consumed emissions, and adaptations. by AMAGGI, considering all business areas, was Management of greenhouse gas emissions generated by the company’s

AMAGGI seeks to continuously improve the quality of its small hydroelectric plants. greenhouse gas inventory, which is already considered one of the most complete in the agricultural sector. In 2019, in addition to the traditionally inventoried sources – such as the consumption of fuels, biomass and fertilizers –, the company also included emissions from crop residues and calculated removals related to the incorporation of carbon in the soil, the result of better agricultural practices such as no-till farming.

Through its small hydroelectric plants, AMAGGI is able to generate and insert renewable energy into the grid, which runs through the transmission lines and reaches several units of the company.

AMAGGI employees measure or soil for no-till. Photo: AMAGGI Archive.

34 Sustainability Report 2019 In 2019, emissions from outsourced road and rail transport generated about 475 thousand tCO2e, which represents a 20% reduction in relation to the 600 thousand tCO2e emitted in 2018. This result reflects the company’s decision to invest in the acquisition of its own truck fleet, internalizing part of this impact in its direct emissions.

Results of the green house gas emission Preservation area at Tanguro farm, in Querência (MT). inventory 2018-2019 Photo: AMAGGI Archive.

823,506 708,019 599,345 509,256 451,217 451,966

Removal of 13,274 13,912 7,982 8,379 Biogenic CO2

Scope 1 Scope 2 Scope 2 Scope 3 Emissions of Note: AMAGGI’s greenhouse gas (GHG) inventory covers all the (traditional (new accounting Biogenic CO2 accounting approach - company’s business areas (Agro, approach - Market Based) Commodities, Logistics and Location Based) Operations and Energy).

2018 2019 -404,035.90 -376,999

Innovating sustainable products and solutions 35 Emissions Mitigation

In its socio-environmental commitment to the present and the future, AMAGGI emphasizes the importance of maintaining actions and programs dedicated to reducing its emissions. With this, the company expects to contribute to low carbon agriculture, in line with its 2025 Plan. Adoption of no-till practices in 100% of the farms, crop-livestock integration, expansion of the adoption of low or zero emission energy sources, and investment in technology are some of the initiatives.

Adaptation

Among the main adaptation measures adopted and promoted by AMAGGI are: genetic improvement (studies, develops and tests new seeds and cultivars that can better adapt to different climatic conditions), management of water resources, management of In 2019, AMAGGI maintained pests and diseases, maintenance of conservation areas approximately 138 thousand (permanent preservation areas, legal reserves, and forest hectares of permanent surpluses are maintained and protected by AMAGGI). preservation areas, legal reserves, and forest surpluses, which together represented more

that 35 million tCO2e.

36 Sustainability Report 2019 Transparency, traceability, and Innovation in the chain

Developing its business by adding environmental, One of the highlights of 2019 at AMAGGI was the launch social, and governance values across the value chain is of ORIGINAR 2.0, an evolution of the ORIGINAR platform. one of AMAGGI’s purposes. Through ORIGINAR – a tool In order to guarantee a better market strategy, and more developed by the company to carry out the geospatial security and traceability for its negotiations, the new assessment of grain and fiber suppliers according to version of the platform allows for management of existing the company’s socio-environmental criteria – AMAGGI commercial information, providing strategic intelligence seeks to ensure that the product purchased (grains for new commodity negotiations. The internal teams are and fibers) comes from properties that guarantee undergoing training to use ORIGINAR 2.0. adequate working conditions and that are socially and environmentally responsible.

AMAGGI launched ORIGINAR 2.0 project, the new version of its traceability and producer evaluation platform, which offers strategic intelligence for new commodity negotiations.

Innovating sustainable products and solutions 37 About this Report Materiality and stakeholder engagement

Between May and September 2019, AMAGGI promoted the engagement of priority stakeholders through various tools and methods, allowing different opinions and expectations to be considered when reviewing the most relevant topics for sustainability management.

This consultation and engagement process was attended by approximately 900 stakeholder representatives. Fourteen themes were considered material in this review – the next one will be held in 2022, for the following three years.

In addition to supporting the AMAGGI Sustainability Report, the results of the materiality review are also used to review documentation and internal processes related to the organization’s sustainability strategy. This means that materiality supports the updating of the Stakeholder Mapping and Engagement Plan, with actions for the following two years, as well as the Strategic Sustainability Planning trough 2025. Materiality matrix

D A N

T I DL Q

M P C B

R

S

AR Stakeholders’ perspective Stakeholders’

AMAGGI’s perspective

D ZERO Deforestation C Socio-environmental P Positioning and I Integrity and Ethics certifications commitments Product quality Employee attraction, Q AR and safety DL Local and regional S Health and Safety retention, and development development B Biodiversity M Climate change A Agrichemicals Transparency T R Labor and union relations in the chain New agricultural N practices

Innovating sustainable products and solutions 39 www.amaggi.com.br /Amaggi.Brasil

/grupoandremaggi /amaggi