Annual Report 2018 2019 Contents

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ANNUAL REPORT 2018 2019 CONTENTS

MESSAGE 04 FROM THE PRESIDENT

06 ABOUT CARGILL

30 PRODUCTS

36 PEOPLE

52 PLANET

ABOUT THE 72 REPORT

77 GRI CONTENT INDEX

86 ANNEX

90 CREDITS 04

Attentive to the constant changes in the market all of the company’s production chains. In addi- In the context of diversity and respect for dif- and on the planet, Cargill strives to bring innovation, a project was implemented at the Starches ferences, we remain committed and working to tions and strategic changes to all its operations. and Sweeteners unit in Uberlândia (MG), through make Cargill increasingly inclusive. Our Diversi- In this sense, we had important renovations in which we intend to achieve a 30% reduction in ty Committee has networks that articulate and 2018, with significant changes that are already water use at this plant. This target corresponds develop essential actions in this area: AfroCar- enabling us to achieve excellent results during to the daily consumption of a city with 17,000 gill, for race/ethnicity equality; Pride, for the pro- the fiscal year: a 33% growth over the previous inhabitants. motion of a safe environment and appreciation year, the milestone of half a billion reais in net of LGBTI+ professionals; MOB, the acronym for income, and net operating revenue of approxi- In 2018, significant investments were also made, the Mulheres Operando no Brasil (Women Op- mately R$ 47 billion. totaling approximately R$ 520 million in the con- erating in Brazil) network, whose mission is to solidation of acquisitions, projects and improve- encourage women and their potential for growth With this vision – which follows trends and val- ments to the plants, creating 100 new jobs. In and leadership within the company; and the re- ues sustainability, our partners and customers, the last eight years, our contributions totaled R$ cently-created IN network, aimed at persons with always combining the soundness of our activities 5.2 billion in the search for more efficient opera- disabilities. In recognition of our performance, we with the ability to reinvent ourselves – we have tions. We are also continuously looking for stra- were awarded in the agribusiness sector by the kept a leading position and excellence in the ag- tegic opportunities in our market of operation. Exame Diversity Guide 2019, which identifies the ricultural and food sector in Brazil. In 2019, we intend to invest approximately R$ best inclusion and diversity practices adopted by 550 million in a new HM Pectin plant in order to Brazilian companies. Among the innovations implemented this year, strengthen and diversify our portfolio in Brazil and MESSAGE FROM it should be noted that the Supply Chain area worldwide. Thus, with all these achievements in fiscal year has undergone changes in the way it organizes 2018/2019, Cargill reinforces its vision to nour- THE PRESIDENT its processes, activities, and talents, seeking to Also throughout the year, the impacts of the im- ish the world in a safe, responsible and sustain- GRI 102-14 increase efficiency and more business opportu- plementation of the new freight road haulage able way, in partnership with farmers, producers, nities. We have also incorporated a new global table for the country gave us the opportunity to manufacturers, retailers, governments, and other strategy in Human Resources, modernizing and rethink our logistics structure, seeking greater in- organizations, in order to fulfill its purposes in an redesigning the structure, processes, and sys- tegration in our business operations. efficient way and help communities thrive. tems of this area. The restructuring aligned all activities from HR to EHS (Environment, Health, Attention to customer satisfaction is another key Finally, we would like to thank all of Cargill’s and Safety), which integrated its programs into all topic for the year. In this sense, Cargill’s consum- employees, customers and business partners, of the company’s businesses. er area presented several innovations: restruc- whose support has been crucial in achieving the turing of the Elefante brand’s visual and verbal expected results. With a team prepared to han- Another innovation was the review of the GPS language, the launch of new salad dressings and dle possible industry fluctuations and carry out (Game Plan for Success), which now operates in olive oils, the launch of a new line of the Nutron the company’s activities with quality, we follow version 2.0, with a greater emphasis on the cus- brand mineral supplements, and the launch of our paths with confidence. I would like to invite tomer. The update was intended to refine and Rapid Neopigg, a customized solution for pig everyone to learn more about our actions and guide our strategic direction for the coming years. raising in the nursery stage. performance in the following chapters.

Among the actions aimed at the sustainable use This was also the year of celebration of the 45th of natural resources, one major highlight was the anniversary of the Fundação Cargill, a significant launch of the South America Sustainable Soy milestone in our history. To celebrate it, we deliv- Enjoy your reading! Policy and the Commitment on Human Rights, ered even more improvements to society: nine as well as the updating of the Policy on Forests. projects selected through a call notice received Luiz Pretti Through these measures, we have reinforced our contributions from R$ 50,000 to R$ 200,000 to President of Cargill in Brazil commitment to protecting forests and promot- carry out works involving social transformation ing sustainable agricultural development across and value generation in the food chain, which will directly benefit over 2,000 people. Cargill has 160,000 employees worldwide who are committed to nourish the world in a safe, responsible ABOUT and sustainable way. CARGILL annual report 08 2018/2019 ABOUT CARGILL 09

2018/2019 HIGHLIGHTS

Net operating revenue of R$ 47 Renovation of the Elefante Updating of the Policy billion in 2018, a 33% increase brand, with a language that is on Forests and launch over the previous year more modern, accessible and of the South America close to the consumer. Sustainable Soy Policy and the Commitment on Human Rights. Implementation of a project to reduce drinking water consumption by 30% at the Announcement of the construction Starches and Sweeteners unit in of a new HM Pectin plant in the Uberlândia (MG). city of Bebedouro (SP).

Launch of Rapid Neopigg, a 853,000 liters of used Participation of more than 1,000 specific product for pig raising vegetable oil collected employees per day in Diversity in the nursery stage. and disposed of Month activities. correctly, with the Ação Celebration of the 45th Renove o Meio Ambiente anniversary of the Fundação Program. Cargill. annual report 10 2018/2019 ABOUT CARGILL 11 AWARDS, ACKNOWLEDGMENTS, AND PARTICIPATION AT EVENTS 5th Corporate Vox Forbes Exame’s Best and Biggest 2018 In fiscal year 2018/2019, Cargill stood out for its excellence in its work, receiving a number of awards and acknowledg- Award Cargill among the top 10 agribusiness compa- ments, as well as participating in important industry events and events on diversity. Among the most remembered nies in Brazil. Brazil’s largest agribusiness companies in the city of San- company. tarém (PA). 2018 Brazilian Packaging Award Ranking Indeed

190 g tomato sauce mini pack. Cargill among the 25 top-rated companies to MERCO 2018 work for in Brazil. Cargill among the 100 Natural Capital Business Management Cases companies with the best corporate reputation in Brazil. Award CRM 2019 Group Exame Sustainability Guide 2018 Cargill elected the best supplier in quality and de- Cargill’s Triple S Program highlighted. Among the companies with the best agribusi- livery. ness sustainability ratings. Valor Econômico Agroleite Trophy 2018 Love Mondays Executive of the Year: Luiz FazLog Carrefour 2018 Restaurantes, Bares Pretti, President of Cargill. Animal Nutrition category. Award & Cozinha Magazine Among the 50 most beloved companies ac- Supplier No. 1 2018, by Folha de São cording to employees. Best supplier. Pennacchi, Baia Norte, and DIEFS. Paulo Top of Mind brand for oils. International Taste & Quality Institute (iTQi) Companies that best communicate with journalists 2018 Genuine White Chocolate receives top award Viva Voluntário Award in international certification. Cargill – Agribusiness Category. 2018

Semeando Futuro – Best Corporate Volunteering. Meio & Mensagem Top of Mind 2018 The Best of Dinheiro (Datafolha) Cargill among the 50 most reputable compa- Rural 2018 nies in Brazil. Elefante brand. Corporate management. Best Agribusiness Award 2018 (Globo Participation in events Rural): ABRAS Award for In 2018, Luiz Pretti, President of Cargill in Brazil, was one of the speakers at the 3rd Na- tional Congress of Agribusiness Women, in São Paulo. The company also participated in leading sales brands Awarded in the categories “Animal Nutrition,” “Oil other events during the year: WILL (Women in Leadership in Latin America), inviting men to a debate on female leadership and profit generation; ABAG, on limits and opportunities Exame Diversity Guide 2019 Liza, Pomodoro, Pomaro- and Soy Industries,” “Larg- la, and Maria. est among the 500,” and for foreign trade; International Food Service Congress 2018; Caminhos da Safra, and the The most diverse agribusiness company. “Champion of Champions.” Financial Times Commodities Summit. annual report 12 2018/2019 ABOUT CARGILL 13 ORGANIZATIONAL PROFILE

GRI 102-1, GRI 102-2, GRI 102-3, GRI 102-4, Present in Brazil since 1965, Cargill operates wide. It also trades sugar and cotton in the • Industrial – it develops and markets renew- GRI 102-5, GRI 102-6, GRI 102-7 in 17 Brazilian states and in the Federal District global market. able and biodegradable specialties, such as through industrial units and offices in 147 munic- vegetable oils, esters, polyols, acidulants, and Founded in 1865 in the United States, Cargill ipalities. Its headquarters are based in São Paulo • Food – it offers the food and beverage industries a starches, among other sustainable solutions, offers worldwide food, agricultural, financial and (SP) and, as of the end of fiscal year 2018/2019, wide range of ingredients. It introduces innovations for the lubricant, liquid dielectric, agrochemi- industrial products, and services. Headquartered the company had 10,029 internal employees. for the retail and food service markets and offers cal, paint, asphalt, foam, cosmetics, paper and in Minneapolis, Minnesota, this privately held its own brands of high-quality consumer products. mining sectors, among others. company is currently present in 70 countries AREAS OF OPERATION and has 160,000 employees worldwide who are GRI 102-6 • Animal nutrition – it provides innovative, • Finance – in this area, Cargill offers financial committed to nourshing our world in a safe, re- transformative and sustainable solutions for the solutions, developed especially for farmers, sponsible and sustainable manner. • Agricultural – it purchases, processes and livestock sector and offers a comprehensive companies in the agricultural sector and the markets soy and other commodities world- portfolio of products and services that promote food industry, through financing and risk man- animal health and performance. agement

PLANTS, PORTS AND MAP OF THE OPERATION IN BRAZIL OFFICES IN THE SOUTHEAST REGION GRI 102-4 Campinas Innovation Center (SP) Paranaguá (PR): Grain export port Goiânia (GO): Production of tomato terminal products

Uberlândia (MG): Soybean and corn processing (for production of São Paulo Central Office (SP) Goianira (GO): Animal nutrition starches and derived ingredients) Chapecó (SC): Animal nutrition and production of acidulants PLANTS IN THE NORTHEAST TEG* Guarujá Export Terminal (SP): REGION Grain export Itumbiara (GO): Vegetable fat production Shared Services Center – Uberlândia (MG)

Barreiras (BA): Soybean crushing TEAG* Guarujá Sugar Export for meal production; soybean oil Rio Verde (GO): Grinding of soybeans; Terminal (SP): Sugar export meal production; crude oil production; Cevasa Patrocínio Paulista (SP): refining and supply for biodiesel refining, packing, marketing and Sugar, ethanol and energy plant production distribution of oil

TES* Santos Export Terminal (SP): Grain export Porto Ferreira (SP): Production Ilhéus (BA): Processing of cocoa SJC Cachoeira Dourada (GO): Sugar PLANTS AND PORT IN THE of maltodextrins and glycoses; byproducts for the food industry plant chocolate and topping SOUTH REGION manufacturing for the industrial food Sugar and Ethanol PLANTS IN THE CENTER- service market WEST REGION SJC Quirinópolis (GO): Sugar, ethanol Starches and Innovation Center Toledo (PR): Animal nutrition and bioenergy plant Sweeteners Mairinque (SP): Production and sale of vegetable fats, mayonnaise, Primavera do Leste (MT): PORTS IN THE NORTH REGION Biodiesel (soy) Central Office oils, compound oils and industrial Soybean processing; production Castro (PR): Processing and specialties of soybean meal and crude and production of corn-based refined oil; oil packing, marketing Cocoa and ingredients Foods and distribution Porto Velho (RO): Grain terminal Chocolate

Itapira (SP): Animal nutrition Cargill Bioindustrial Soy (grains) Ponta Grossa (PR): Grinding Santarém (PA): Grain export port and degumming of soybeans; Três Lagoas (MS): Soybean terminal Shared Services production of crude oil and processing; production of Terminal (sugar) Center CAN Mogi Mirim Innovation soybean meal for animal nutrition; degummed vegetable oil Center (SP): Animal nutrition emulsifiers and industrial specialties and biodiesel; soybean meal Cargill Animal manufacturing Terminal (grains) Miritituba District, Itaituba (PA): Road- Nutrition *In these units, Cargill has interests through joint ventures to-water grain transshipment terminal annual report 14 2018/2019 ABOUT CARGILL 15

STRATEGIC MANAGEMENT CARGILL LEADERSHIP EXPECTATIONS GRI 102-16 We are all expected to demonstrate leadership behaviors to drive high performance. Cargill’s strategic management is directly linked achieving performance goals and objectives. to its purpose of nourshing our world in a safe, Each year, priorities are set to drive the business responsible and sustainable manner. To achieve and the roles, driving progress in what matters its mission, the company has developed the most to the company. Game Plan for Success (GPS), a strategic direc- AGILE & RESILIENT tion plan that guides it in your highest aspirations The first GPS was launched in 2015 and result- (purpose and vision), decision making (values), ed in major breakthroughs for Cargill, aiding its SYSTEMS THINKER Cultivate innovation by experimenting the scope of what it offers to customers (cus- alignment and integrated operation. In 2018, the and adapting, learning from failures, and Connect the dots and move tomer value proposition), and the presentation of GPS underwent a review, and is now called GPS pushing boundaires beyond the obvious to drive growth. means to achieving results faster (accelerators). 2.0. In this process, it was found that the com- Create clarity, optimism and pany is on the right track, and new ideas were opportunities in the face of ambiguity, In the GPS, Cargill focuses collectively on strat- incorporated to achieve the goals and stimulate uncertainty, and setbacks. egies that are able to deliver more results in growth for the coming years. STRATEGIC EX EC UT Be curious, constantly IV DECISIVE & IN E GAME PLAN FOR SUCCESS 2.0 E E scan the environment and ID X RESULTS DRIVEN S C T E know the customers to U P O T I discover growth potential. E Put O Solve problems through H N T A CARGILL WILL BE THE LEADER IN people L others by seeking input, not G

R OUR PURPOSE Transform business trends N first I NOURISHING THE WORLD IN A SAFE, E consensus. R S

B Why we exist into long-term strategic Do U

L RESPONSIBLE AND SUSTAINABLE WAY. the right T Act decisively and

approaches to move the S organization forward. thing VALUES courageously. Achieve exceptional results by OUR VISION WE WILL BE THE MOST TRUSTED PARTNER taking ownership, persisting Reach in the face of challenges, Where we are going IN AGRICULTURE, FOOD AND NUTRITION. higher and holding self and others accountable.

EN ER CE GIZ AN • Put people first E FO ORM OUR VALUES R HIGH PERF How we make tough • Do the right thing decisions • Reach higher PEOPLE FIRST AUTHENTIC & INSPIRATIONAL

Shape and engage globally diverse teams Inspire a shared sense of purpose and to leverage different perspectives and direction with excitement for the future to OUR CUSTOMER VALUE A world of expertise delivered locally, quickly an reliably create inclusive environments. motivate and energize others. PROPOSITION – creating value together with our customers. Why customers choose us Develop self and others to unleash Foster trust and teamwork through self- potential by setting high standards, awareness, integrity and humility. rewarding performance and confronting Promote candor through sharing difficult poor performance. or unpopular messages in a motivating way and letting people know where they • Innovate what matters OUR ACCELERATORS stand, honestly and sensitively. How we drive growth • Unlock Cargill's full potential • Grow markets and margins annual report 16 2018/2019 ABOUT CARGILL 17

CODE OF CONDUCT GRI 102-16 GOVERNANCE GRI 102-18 Cargill’s Code of Conduct1 is inspired by glob- An example of a misconduct reporting tool is the al ethical standards. The document has guiding Ethics Line, an anonymous channel operating Globally, there are seven standing committees, els is responsible for monitoring quarterly met- principles that underlie how the company and its on a 24/7 basis. Available to all employees any- with temporary committees being established rics, submitting recommendations to the leaders, employees worldwide should conduct business where in the world, the channel addresses mor- as necessary to address specific and local is- validating guidelines, actions, goals, and indica- and summarizes key compliance policies and is- al/ethical issues and is managed by an external sues. These committees consist of executives tors, and monitoring the actions of the Business sues that may have legal/ethical consequences if partner who confidentially shares information for from various parts of the world, allowing them to Resource Group (BRG) – voluntary networks of not addressed in the correct manner. All employ- internal investigation purposes. consider local business specificities. One of its employees who perform actions aiming at diver- ees who join the company receive training in the purposes is to support regional boards in the ex- sity. They are: Pride Network (sexual orientation Code of Conduct. In addition, refresher training is For labor issues, Cargill makes available the ecution of operations and strategies. and gender identity), AfroCargill (race/ethnicity), given each year for employees who already work MyHR Portal, through which employees may re- Mulheres Operando no Brasil (gender), and IN at Cargill. port any practice that is not in compliance with Cargill’s Board of Directors in Brazil is responsi- (persons with disabilities). the labor law or company principles. This is the ble for the company’s national leadership and is ideal channel for the Human Resources depart- composed by the president and six directors. It is Moreover, the Committee has developed a road- ment’s Employee Relations team to initiate an also supported by some local committees, such map – a tool used to plan and chart paths to investigation directly with the employee in situa- as the Diversity Committee and the Sustainability encourage inclusion and diversity. Each year, tions involving possible misconduct that have an Committee, as detailed below. the Committee prepares an action plan with the impact on this audience. main initiatives of each network, addressing the DIVERSITY COMMITTEE intersectional aspects of diversity. Initiatives in- Cargill’s Diversity Committee aims to develop clude lectures, training, and debates for compa- and execute actions that promote a more inclu- ny leaders, internal communication campaigns, sive work environment. A multidisciplinary group diagnostics, and events. of employees from all areas and hierarchical lev- GUIDING PRINCIPLES

1. We obey law. 2. We conduct our business with integrity. 3. We keep accurate and honest records. 4. We honor our business obligations. 5. We treat people with dignity and respect. 6. We protect Cargill's information, assets and interests. 7. We are committed to being a responsible global citizen.

1. https://www.cargill.com/doc/1432076403886/guiding-principles-pt.pdf annual report 18 2018/2019 ABOUT CARGILL 19

SUSTAINABILITY COMMITTEE The Sustainability The purpose of the Sustainability Committee is to FINANCIAL PERFORMANCE advise and recommend to the Board of Directors Committee aligns strategies that are aligned with the company’s overall purpose of being acknowledged as the Cargill's global most reliable source of sustainable products and GRI 102-7, GRI 201-1, GRI 103-2, GRI 103-3 In all, 2018 investments totaled R$ 520 million, services. It supports priority sustainability issues sustainability distributed in the consolidation of acquisitions, in an integrated manner for different businesses policies and goals In 2018, Cargill posted net operating revenues projects, and improvements of plants, creating to mitigate risks and create value for Cargill. of approximately R$ 47 billion, a 33% increase over 100 new jobs. Considering the last eight with local priorities over the previous year. Net income also grew by years, Cargill has invested in logistics, infrastruc- The Committee aligns Cargill's global sustainabil- 15% compared to 2017, ending the year at R$ ture, production capacity, and technology, total- ity policies and goals with local priorities within within operations 680 million. ing over R$ 5.2 billion. operations and supply chains. In the second half of fiscal year 2018/2019, the Committee under- and supply chains went a strategic review, based on a participato- ry process between members and key internal CARGILL ALIMENTOS CONSOLIDATED FINANCIAL RESULTS FOR 2018 stakeholders to define priorities for the coming the monitored topics and take steps to improve (CASA* + ANIMAL NUTRITION) - R$/MM years. its performance. The progress of the actions is a consequence of the work of several teams, in- CARGILL ALIMENTOS LTDA. 2017 2018 Variation To monitor the progress of the strategy, the com- volved in the search for greater efficiency in the Net Operating Revenue 34,955 46,533 33% pany checks the key indicators on a quarterly ba- use of natural resources and in the appreciation Net Income for the Year 593 680 15% sis, which allow it to analyze progress on each of of employees, suppliers, and communities. Net Equity 4,193 4,880 16% Investments (Fixed Assets) 793 520 -34% Total Assets 14,590 20,210 39% TOPICS STRATEGIC OBJECTIVE Target 2017/2018 2018/2019 Performance * CASA = Cargill Agrícola, S.A. Increasing energy efficiency 5% 9.22% 12.48% Energy Increasing renewable energy use 18% 92.61% 88.14% Water Increasing water use efficiency 5% 17.15% 9.47% CONSOLIDATED CARGILL ALIMENTOS Eliminating the occurrence of reportable accidents Health and associated with employee and contractor health 0.10 0.12 0.11 Safety NET REVENUE (THOUSANDS) 2017 2018 and safety Internal Market 10,311,634 29% 12,103,368 26% Improving relationships with communities through External Market 24,643,544 71% 34,430,382 74% Communities engagement and measures that promote their >70% 87% 96% economic and social development Total Net Operating Revenue 34,955,178 100% 46,533,750 100% Suppliers Assessing supplier sustainability performance 75% 79% 79% Legend – Performance: GROSS REVENUE (THOUSANDS) 2017 2018 The number analyzed has increased/improved. Internal Market 11,528,724* 32% 13,370,839 28% The number analyzed has decreased/worsened. The indicator has remained the same. External Market 24,643,544 68% 34,430,382 72% Gross Operating Revenue 36,172,268 100% 47,801,221 100% * The Gross Domestic Market Revenue published in the 2017 Annual Report (R$ 11,258,724/MM) is incorrect. The number has been corrected in this report to 11,528,724 - R$/MM. annual report 20 2018/2019 ABOUT CARGILL 21

INVESTMENT AND INNOVATION OPERATIONAL PERFORMANCE

In 2018, Cargill pursued its growth strategy With these initiatives, the goal is to increase the based on investments and innovations. The year added value of marketed products and ingredi- SUPPLY CHAIN 2019 started keeping the same pace, with the ents and achieve operational excellence with effi- GRI 102-9, GRI 414-1, GRI 414-2, FP1, GRI 103-2, GRI 103-3, MATERIAL TOPIC: GOOD implementation of three innovative projects in the ciency and sustainability. AGRICULTURAL PRACTICES / SUPPLIERS AND FARMERS city of Uberlândia (MG): For 2019, Cargill will invest in a new HM Pectin In order to ensure the best practices and strengthen sustainability within the supply chain, Cargill • New plant for the manufacture of wet diet plant in Bebedouro (SP). The project, expected offers a range of services, inputs and food products to its partner network, handling all stages in the items for ruminants with a capacity to produce to receive an investment of R$ 550 million, is part countries where it operates: processing, storage, and distribution of finished products. 60,000 metric tons per year; of the company’s plan to strengthen and diversify • Plant opening for production of modified its portfolio, which also includes improvements starches; to its three plants located in Europe (Germany, • Start of treated wastewater reuse project, re- France, and Italy). HM Pectin is a versatile tex- ducing drinking water consumption in the unit turizing agent made from citrus and used in the We provide insights to our partners by more than 30%. production of jams, juices, and dairy drinks. The Data analytics Market Risk Financial expertise management solutions new plant will contribute to Cargill’s production expansion by increasing the premium pectin offering to customers worldwide. We transform raw materials into Animal Food Animal Branded Bioindustrial finished goods nutrition ingredients protein foods

For farmers For customers We supply feeds, We deliver finished other inputs and goods to customers expertise to farmers, We move products Roads Rail in the foodservice, and buy crops and around the world retail, consumer livestock from them. packaged goods and industrial Rivers Oceans sectors.

SUSTAINABILITY IN THE PRODUCTION CHAIN

The company works hand-in-hand with its sup- Through the Supplier Code of Conduct2, Cargill pliers, continually enhancing purchasing rela- ensures that its suppliers conduct their business tionships to fulfill its commitment to nourshing with integrity, ethics, and transparency, treating our world in a safe, responsible and sustainable its employees with dignity and respect, as well manner. It has suppliers from various sectors as the communities in which they operate. In the such as raw materials, packaging, and other ser- Strategic Sourcing & Procurement area, for ex- vices. Some purchases are made in an integrat- ample, an assessment questionnaire is applied, ed manner by the Strategic Sourcing & Procure- addressing labor practices, occupational safety ment area, while agricultural supply is carried out and health, environment, and corporate respon- by each business unit. sibility, as one of the ways to analyze compliance with the Code of Conduct.

2. https://www.cargill.com/doc/1432101086971/supplier-code-of- conduct-pdf_pt.pdf annual report 22 2018/2019

For all procurement and contracting of goods Brazilian and international companies. To oper- and services, the company provides the Buyer ationalize its commitment, the company has an Code of Ethics3, which guides employees in pre- automated system that blocks all employers on paring themselves to deal with potential conflicts the slave labor blacklist so that it is not possi- of interest or ethical situations and what actions ble to make purchases, sign contracts or receive and attitudes should be taken to remedy this goods from companies or individuals on this list type of situation. (for more details on this topic, please refer to the “Human Rights” chapter on page 49). Cargill also has socio-environmental clauses, considering the applicable policy of the compa- In line with these assumptions of socio-environ- ny, in 100% of contracts with suppliers in order mental responsibility, Cargill is committed to pro- to ensure, for example, that the company does moting more sustainable agriculture in the agri- not hire companies that operate with degrading cultural supply chains, working with producers, or compulsory labor. governments, tertiary-sector organizations and members of the communities where it operates Committing to the defense of human rights and in order to find practical and scalable solutions. the elimination of all forms of compulsory labor The following are examples of actions and part- in its production chain, Cargill has been a sig- ners in the chains that are considered a priority natory to the National Pact for the Eradication for the company. of Slave Labor in Brazil since 2006. It is also a board member of the National Pact Institute for SUSTAINABILITY IN THE SOY the Eradication of Slave Labor (InPACTO), whose CHAIN mission is to promote the prevention and eradi- Cargill takes a number of steps to advance its cation of slave labor in the production chains of commitment to protecting native forests and promoting rural agricultural development while pro- TRIPLE S PROGRAM viding deforestation-free production chains and The Triple S (Sustainable Supply Solutions) Pro- the prosperity of producers. Specific to the soy gram is a complete agricultural, environmental chain, the company works closely with industry and social management platform that provides partners and implements the Triple S Program. farmers with tools that support the management of their property and the control of their production with practicality, responsibility, and transparency.

This Cargill’s Program acts, in partnership with the BioSystemic Institute (IBS), as a free and vol- a part. The award is granted by FGVces in part- Cargill is untary certification for soybean producers and nership with projects coordinated by the Ministry offers engagement in a process of continuous of the Environment, National Industry Confeder- committed to improvement to comply with Brazilian labor, so- ation (CNI) and the Grupo Boticário Foundation. cial and environmental legislation. promoting more Further, in August 2018, the first phase of the In 2018, the Triple S was one of the cases award- program was completed with positive results. sustainable ed by the Natural Capital Business Management Throughout the two-year cycle, the actions un- agriculture in Cases initiative, created to demonstrate how nat- dertaken provided support to ensure that pro- ural capital management creates value for com- ducers could have more sustainability and effi- the agricultural panies and for the ecosystems of which they are ciency in their business. supply chains

3. https://www.cargill.com.br/pt_BR/ doc/1432099120657/code-of-ethics-strategic- sourcing-procurement-pdf-pt_br.pdf annual report 24 2018/2019 ABOUT CARGILL 25

HIGHLIGHTS OF THE FIRST STAGE OF THE TRIPLE S PROGRAM • Total area of engaged farms: 392,000 In addition, Cargill has valuable initiatives and For 15 years Cargill hectares. partnerships, joining forces with industry part- • 4 Brazilian states (Goiás, Paraná, Mato ners, direct and indirect suppliers, customers, has been working with Grosso, and Pará) have joined the Triple S governments and farmer groups, given that de- sustainable soy certification. forestation and land conversion practices are TNC globally, promoting • 600 field visits for technical assistance to the driven by complex economic forces encompass- properties. ing the globe. The following is a brief description sustainable agricultural • 130 signaling board kits distributed. of each partnership undertaken under the new • 5 e-books on rural construction and good sustainability policies: practices and protecting agricultural practices distributed via WhatsApp forests with farmers and through the website. SOY WORKING GROUP AND • 4 workshops. MORATORIUM (GTS) Cargill actively participates in all meetings of the In September 2018, a new cycle began. In ad- Soy Working Group (GTS), composed of com- it does not market or even finance soy produced dition to the entry of new producers, two more panies linked to the Brazilian Vegetable Oil In- in areas deforested in the Biome after July 22, states were included (Mato Grosso do Sul and dustry Association (ABIOVE), the Brazilian Cereal 2008, the reference date of the Forest Code. Rondônia) and the monitoring of emissions from Exporters Association (ANEC), Banco do Brasil, THE NATURE CONSERVANCY (TNC) some producers was initiated. and other civil society organizations, such as CERRADO WORKING GROUP (GTC) Cargill has worked with TNC globally for 15 years, Greenpeace and WWF-Brazil. The Soy Mora- Established in 2017, the Cerrado Working Group promoting sustainable agricultural practices and torium is a sectorial agreement signed in 2006, (GTC) is coordinated by the Brazilian Vegeta- protecting forests with farmers. In 2018, the part- in which companies undertake not to market or ble Oil Industry Association (ABIOVE) alongside nership was extended to the project “Boosting finance soy produced in areas that were defor- WWF-Brazil and brings together national and Sustainable Agriculture and Protecting Biodiver- ested in the Amazon biome after 2008. Thus, international NGOs, companies, government, sity in Areas of Agricultural Expansion,” which through robust procedures, Cargill ensures that banks, and consumers. The group was formed strengthens socio-environmental governance for with the aim of seeking solutions to eliminate, as grain production in the state of Maranhão. soon as possible, deforestation in the Cerrado biome, reconciling soy production with environ- With operations also in Pará (PA), Cargill aims to mental, economic and social interests. use this partnership to strengthen education for local technicians in the restoration of degraded ar- SOJA PLUS eas and provide rural technical assistance. Thus, It is a free and voluntary educational program for the company addresses the issue of the low avail- continuous improvement of the economic, social ability of qualified human resources to guide for- and environmental management of rural proper- est restoration processes in the Santarém region, ties, preparing them for sustainable production one of the points identified by the Strategic Forest in line with market demands. The initiative began Restoration Plan, prepared during the fiscal year in 2011 through a partnership between ABIOVE 2018/2019 by TNC, with the support of Cargill. and the Mato Grosso Soybean and Corn Pro- ducers Association (APROSOJA-MT) and is car- SOFT COMMODITIES FORUM (SCF) ried out in the states of Mato Grosso, Mato Gros- SCF is a global platform of leading agricultural so do Sul, Minas Gerais, Bahia, and Goiás. commodity companies organized by the World Business Council for Sustainable Development In fiscal year 2018/2019, Cargill continued to (WBSCD) with the purpose of promoting collec- support the initiative, focusing on the program tive action in light of common sustainability chal- in Minas Gerais and Goiás, which received extra lenges. Cargill is one of the founding members of funding from the company. the initiative. annual report 26 2018/2019 ABOUT CARGILL 27

In June 2019, SCF members presented public TROPICAL FOREST ALLIANCE 2020 Through this initiative, Cargill is improving farm- Cargill is also a signatory to the Cocoa Action reports on soy from the Cerrado biome in Brazil. (TFA 2020) ers’ living conditions, contributing to income Brazil multi-sectoral initiative launched in Octo- In total, six reports were published – one from The global public-private partnership, in which generation and the well-being of communities ber 2018 by the World Cocoa Foundation. The each member company – including reports on members take voluntary action on an individual and providing its customers with high-quality platform acts on the definition of priorities, goals, transparent and traceable soy in Brazil. Published and joint basis, was established to reduce trop- products, always focusing on the conservation of and indicators for sustainability actions in the information includes the percentage of soybean ical deforestation associated with the supply of natural resources. cocoa production chain in the country, as well that these companies obtain from the Cerrado commodities such as palm oil, soy, meat, paper, as seeking the engagement and articulation of in relation to the total volume of Brazil (based on and pulp. Cargill is a member of the TFA Global Cargill Cocoa Promise reflects the company’s various stakeholders. The last meeting of the 2018 data) and the percentage of soybean pur- Steering Committee and the TFA LATAM Region- commitment to the evolution of sustainability in National Committee was held in June 2019, in chased directly by farmers or indirect suppliers, al Steering Committee. the cocoa chain by 2030. It is in line with the UN Brasilia (DF), and, on the occasion, representa- such as cooperatives and third parties, from 25 Sustainable Development Goals (SDGs), focus- tives of the companies and entities participating priority municipalities. SUSTAINABILITY IN THE COCOA ing on generating long-term solutions, along with in the platform discussed the challenges of the CHAIN partners to benefit farmers, communities, and cocoa chain alongside representatives of the fed- Established in 2012, Cargill Cocoa Promise is a ecosystems by increasing transparency in the eral government and the state governments of commitment that permeates the company’s work cocoa supply chain and helping it thrive. Bahia, Pará, Espírito Santo, Rondônia, and Mato in the cocoa chain. Through it, Cargill reaffirms Grosso. The goal of the meeting was to identify its commitment to promote a more sustainable Recently, Cargill started two pilot projects fo- joint action opportunities to promote the increase production chain, leveraging the efforts already cusing on sustainability in the cocoa production of sustainable cocoa production. There is also an existing in cocoa-producing countries where it process. The goal is to increase producers’ pro- agenda for upcoming meetings in 2019: Cargill operates, including Brazil. ductivity and income, as well as promoting re- will attend the 6th Cocoa Action Technical Group sponsible socio-environmental practices in the Meeting and the 2nd Annual Cocoa Forum. cultivation of the product. One of the projects is the “Fertile Cocoa”, developed in the Tuerê set- tlement region, in Novo Repartimento (PA), in partnership with the NGO Solidaridad. Another project is the “Farmer Coaching”, implemented in partnership with the NGO Imaflora in the region of Mecilândia (PA) with the aim of providing technical assistance for the exchange of good cultivation practices, as well as training leaders who will disseminate the knowledge acquired. Cargill Cocoa Promise reflects the company’s commitment to the evolution of sustainability in the cocoa chain by 2030 annual report 28 2018/2019 ABOUT CARGILL 29

SUSTAINABILITY IN THE PALM OIL CHAIN

A product of great versatility, palm oil – also ensuring that it has been produced in a sustain- INNOVATION known in Brazil as azeite de dendê – is one of able manner. Customers who purchase Cargill’s CENTERS the most widely used products in the world to- certified oil may include the certification seal on day, being used in the food, cosmetics, hygiene their packaging, informing their consumers that and cleaning, agri-energy, and biofuel industries. the product contributes to sustainable palm pro- Its raw material comes from palm trees grown in duction. tropical areas of the planet, and Brazil is a place Cargill has two Innovation Centers for Latin which 19 prototypes were presented in several of great potential for planting. In 2019, in partnership with the Earthworm Foun- America, one located in Campinas (SP), to serve categories; dation, a training course was held in Pará, aimed food, bioindustrial and personal care customers, • 1 Innovation Workshop presented to 5 Cargill has a strict purchasing policy for this at producers in the field of socio-environmental and one in Mogi-Mirim (SP), to serve animal strategic customers in the dairy category, in raw material, which includes 100% traceability management, with the participation of compa- nutrition customers. partnership with two suppliers. Innovative on palm oil originating from Brazil. The companies, NGOs, public organizations, associations concepts that are ready to be launched in the ny also offers its customers a palm certified by and communities representing different links in The Campinas Innovation Center is dedicated market were addressed. the RSPO (Roundtable on Sustainable Palm Oil), the palm production chain. There were three days to research and development actions to benefit • 5 Roadshows in different regions of Brazil, of training with the participation of 32 people, an customers and integrate work between food bringing prototypes and technical information important moment for companies and communi- ingredient business units across the continent. of the company’s products to customer and ties to discuss the main problems of the territory, universities. responsibilities, and ways to address the issues Highlights in this area include: raised in order to implement assertive solutions. In turn, the Animal Nutrition Research Center • 42 customer visits to the Innovation Center in (CPNA), located in Mogi-Mirim, conducts several Campinas; technical studies in the area of poultry and swine • 139 customer projects, 20 of which nutrition, and soon grazing beef cattle, focusing developed alongside the customers in the labs; on modeling, intestinal health, additives, and • 7 Innovation Days, in addition to an nutritional requirements. Innovation Fair for a strategic customer, in

INTEGRATED BUSINESS PLANNING

In the search for increased operational efficien- courses of action and the search for efficiency cy and attentive to other business opportunities, gains. In addition to innovating in the way the Cargill’s Supply Chain area began a reorganiza- company plans its supply chain, the new supply tion process in 2018. In addition to changes in chain process design is in line with Cargill’s global structure, the area now has a new way of orga- model. nizing its processes, activities, and people. The restructuring will provide more horizontalization The change process was supported by an exter- and even more opportunities for integration and nal consulting firm, hired to work on restructuring development for professionals in the area. with the teams for 18 weeks.

To align all elements in this new organization, the The changes began to be implemented in Jan- Integrated Business Planning (IBP) was created uary 2019 and are expected to be completed with the aim of increasing the visibility of new within eight months. possibilities, allowing the reassessment of the Fiscal year 2018/2019 featured many product innovations and new strategic partnerships for Cargill. PRODUCTS annual report 32 2018/2019 PRODUCTS 33

SALAD DRESSINGS OLIVE OIL PRODUCT LAUNCHES In the summer season, two new salad The Borges Olive Oil line featured dressings were launched in the Liza Red the launch of the Organic Borges Berries and Liza Oriental versions. The Olive Oil, an extra virgin olive oil AND NEW PARTNERSHIPS choice of flavors was made based on stud- made using organic farming meth- ies on consumption habits and culinary ods – without the use of pesticides, GRI 103-2, GRI 103-3, MATERIAL TOPIC: INNOVATION IN THE FOOD SYSTEM trends. Practical and with striking flavors, chemical fertilizers or GMOs in both sauces are low-calorie products with its production process. Consum- Always attentive to the needs and preferences of its customers, in 2018, Cargill invested on product reduced sodium levels and gluten- and lac- ers can find the seal that proves launches that meet the demand for more affordable prices, smaller portions to avoid waste, new fla- tose-free. this “organic” denomination in the vors, and brand renewal, as well as prioritizing the needs of consumers who seek sophistication and packaging of the product itself. sustainability. In the same period, strategic partnerships were also established with important new customers.

TOMATO PRODUCTS CHOCOLATE The overhaul of the Elefante brand was accompanied by The Genuine line introduced the motto “Elefante, viver junto rende mais” (“Elefante, living new packaging and sizes for together yields more”). The brand has evolved into a more all topping products. Now informal and intimate tone, featuring a modern, accessible, available in 2.1 kg and 1 kg consumer-friendly language. In addition, with the support of sizes in the milk, white and Maurício de Sousa, Cargill updated the character Jotalhão. dark chocolate flavors.

There was also the launch of new retail products, with innovative features: in tomato extract, Elefante Sabores now fea- ANIMAL NUTRITION tures the Pizza version and Extratomato, a 540 g pack. For Under the Nutron brand, Cargill Animal sauces, new releases include the new 520 g packs focusing Nutrition launched the Rapid Neopigg, a on the Cash & Carry channel; a new premium line of Poma- pig-specific product for the nursery stage. VEGETABLE OIL AS AN INSULATING AND rola made in Italy and sold in glass containers that can be re- The tailored solution focuses on the chal- COOLING FLUID used after consumption or sent for recycling; and the special lenges and difficulties of adapting freshly The companies EDP and Neoenergia, which operate in edition of Pomarola Chef, with a recipe by the winner of the weaned piglets (which are no longer on a the Brazilian electric power sector, now enjoy the ben- last edition of the Master Chef Brazil, Maria Antonia Russi. liquid diet and eating feed) due to stress efits of Cargill’s FR3™ insulating vegetable oil in new during the maturing phase of the immune transformers in their power distribution networks. This and digestive systems at the start of the is a reliable, sustainable, safe and efficient solution for nursery stage. A digital platform for poul- transformers. With biodegradable characteristics, the try customers, the Poultry Enteligen, which FR3™ is a non-toxic fluid made from renewable sourc- integrates the Nutron Poultry solutions plat- es, helping to protect the environment. In this line, Car- form and brings more technology into live- gill also provides all the technical support to validate the stock production, has also been launched, application of the technology, ratifying the operational INNOVATIVE TECHNOLOGY SOLUTIONS supporting decision-making and optimizing and financial benefits of replacing mineral oil with veg- The company also announced in 2018 a strategic partnership with Agriness, the technology leader in pork and improving production profitability. etable oil. production in Latin America to drive industry-wide transformation and bring emerging digital technologies to customers around the world. This should enable the improvement of livestock production and profitability of properties. annual report 34 2018/2019

FOOD SAFETY

GRI 416-1, FP5, FP8, GRI 103-2, GRI 102-3, MATERIAL TOPIC: FOOD SYSTEM INNOVATION / FOOD SAFETY AND NUTRITION / SUPPORT FOR SOCIO-ENVIRONMENTAL PROJECTS

For Cargill, food safety is crucial, permeating all tailed product information. All its online brands' actions in its production chain, and is reflected platforms include a “Contact Us” session. in its commitment to providing safe, high-quality products. To this end, it has the Cargill Product It should be noted that the company contributes Safety and Quality Policy, revised in 2019, as well significantly with technical support on important as specific certifications, such as the Food Safe- topics for the food industry and monitors the con- ty System Certification (FSSC 22000), which at- stant improvement of regulations and self-regula- tests food quality and safety. tion. The company also acts alongside the food industry, academia, and government representa- To serve retail consumers, Cargill has a Custom- tive associations. er Service Center (SAC) and websites with de- In 2018, Cargill provided a technical contribution for the discussions on Public Subsidy Acquisition (TPS) for the review of nutrition facts labeling by by Brazilian consumers. Academics, healthcare the National Health Surveillance Agency (ANVI- and industry professionals and consumers have SA), the primary purpose of which is to facilitate participated in the discussion on the subject, and the use of nutritional information for food choices the information will be consolidated in a Public Hearing, which will present proposal on the product labeling for the sector. Food safety HEALTHINESS Eating habits are the foundation of healthy living Lévia+e was developed with the aim of meeting permeates all and well-being. For this reason, Cargill, in part- the growing demand for products that contribute nership with food industries around the world, to a healthier diet. actions in works to develop healthier alternatives for its consumers, such as the Lévia+e line, innovations Tomato products Cargill's production in recipes, and presentation of tomato products. The company is also working to reduce the amount of sodium and sugars in its tomato prod- chain and is Lévia+e ucts both in its tomato extract and pre-made The Lévia+e line is the newest solution in the sauce lines but without changing its taste and reflected in its company’s oils and fats portfolio , employing in- quality. Another noteworthy action is the com- commitment to novative patented technology that enables it to plete elimination of preservatives in tomato sauc- reduce saturated fat content without increasing es in packs (other packages no longer used food providing safe the trans fats content in its products. Intended additives). for application in fillings of cookies and choco- and high-quality lates, cakes, and ice cream, among other foods, products At Cargill, everyone is important. Inclusion and diversity are themes that permeate all the company's actions. PEOPLE annual report 38 2018/2019 PEOPLE 39 EMPLOYEES

GRI 102-8, GRI 103-2, GRI 103-3, MATERIAL a new way of delivering Human Resources prod- EMPLOYEES BY ESSENCIAL PARA VOCÊ PROGRAM TOPIC: OFFICIALS ucts and services to businesses and functional CONTRACT TYPE Bringing together benefits, partnerships, and actions areas. The area’s new structural design was sup- for the self-care, well-being, and quality of life of em- Always thinking of how to improve the relation- ported by the launch of a technology platform for CONTRACT TYPE Total staff ployees and their dependents, Cargill launched the ship with its employees, last year, Cargill rede- the management of service delivery data. Apprentice 353 Essencial para Você (“Essential for You”) Program in signed the entire Human Resources area. The Intern 86 October 2017. structure is in line with the company’s new global In addition, during the year, the Employee Expe- Undefined term* 9,248 HR strategy, launched globally in 2015. The re- rience area was created, with work focusing on Temporary 342 In 2018, under the Program, the launch of the Saúde structuring aims to further encourage and en- a more empathic and strategic look at the com- Total 10,029 de Bolso (“Pocket Health”) Program (financial hance the potential of employees through the en- pany’s initiatives, considering employees’ deci- * Includes employees + trainees. lectures and workshops organized by CoopCargill), gagement and development of culture, leaders, sion-making experience and seeking solutions the Partnership Program (discounts and exclusive and the entire staff. that benefit everyone. partnerships at www.essencialcargill.com.br), and EMPLOYEES BY Gympass (a network of facilities for sports activities). With the change, all activities in the area were In fiscal year 2018/2019, Cargill reported a total SENIORITY aligned based on process structure, technology, of 10,029 internal employees. ESSENCIAL PARA VOCÊ WALK!! people and culture – innovations that proposed CONTRACT TYPE Total staff To celebrate these achievements and innovations for Full-time 9,590 employees, the company’s units in various locations PERCENTAGE OF EMPLOYEES BY REGION Part-time* 86 were invited to conduct the Essencial para Você Walk! Apprentice 353 Total 10,029 Organized and planned in conjunction with the Es- * Interns – hourly pay. sencialistas (program ambassadors), local leaders, the EHS team and the quality of life/local association areas, the action took place in November and December 2018 with 29 events, bringing together NORTH over 4,500 people (including staff, friends and family) 7.0% HEALTH PANEL – in 37 different locations, thereby forming a collec- PINK OCTOBER AND tive celebration of leadership, health, well-being, and NORTHEAST quality of life. 8.0% BLUE NOVEMBER

MIDWEST 27.0% In October 2018, Cargill promoted light and positive dialogue on breast and prostate cancer at the Health

SOUTHEAST Panel, an event that celebrated a year of the Essencial 43.0% para Você program (for more information, please refer to the “Employees” chapter).

In lectures with medical specialists, the focus was on diagnosis, treatment, personal strength, and support SOUTH 14.0% from family, friends, and co-workers. In addition, in Oc- tober and November, employees were exempt from the co-participation of preventive exams. PEOPLE 41

men and women to encourage the company’s One of Pride Network’s educational programs is the formation of female audience to perform their duties with Allies, open to all company employees. Upon enrolling in the pro- excellence and courage, increasing the visibility gram, employees are invited to an initial training session and receive of their leadership and execution capabilities. educational materials and invitations to other forums, which will help The group’s goal is to turn Cargill into women’s them understand the topic in a more appropriate manner and adopt favorite company. more inclusive behaviors towards their LGBTI+ coworkers, friends, and family. In June 2018, the milestone of over 1,000 allies in the Acting as an open channel for information ex- program was reached. change, the MOB conducted in the first quarter of 2018 two nationwide surveys with the inter- • AfroCargill nal public. The first one assessed the percep- The group works to build an environment in which everyone can tion of the female audience regarding Cargill’s have equal conditions, irrespective of ethnicity, with a greater fo- gender equity challenges. The second one was cus on black professionals. To achieve its goal, AfroCargill seeks applied in specific units with the aim of map- to observe equity with regard to the color or ethnicity of employ- ping the main difficulties to retain and/or hire ees of the company’s different hierarchical levels and develop new women who work in operational areas. To- a work plan to promote equality and ethnic-racial appreciation. day, the results are being contemplated in the With an average attendance of 1,000 employees in action plans of each locality. In 2019, the company became a signatory to the Racial Equality each lecture given by the networks, the event featured Business Initiative, a platform for articulation between companies interactive group activities and debates. Initially focused on the Operations area, a cul- committed to seeking even more significant performance in ad- turally male-dominated sector regarding gender dressing the issue. Previously, Cargill had held the Diversity Week for two equality, the MOB network has expanded its consecutive years. In 2018, the event presented the boundaries, and today, the group’s initiatives are • IN theme “Empathy Opens Doors,” addressing in all lo- shared with all employees who are interested in In April 2019, the IN, a network that focuses on topics related to cations of the company in Brazil the importance of an participating and contributing to the cause. Cur- persons with disabilities, was launched. The group’s mission is to empathic look at work relationships, as well as empha- rently, 19% of MOB members are men. follow Cargill’s ethical principles to promote an inclusive and di- INCLUSION AND DIVERSITY sizing subjects related to gender equality and gender verse work environment in which people with different skills have For Cargill, more diversity means more wealth in directing identity, sexual orientation, ethnicity/race, and persons • Pride Network the opportunity to achieve high performance, delivering results its actions and business. The range of human and organi- with disabilities. The Pride Network acts in the LGBTI+ promotion for the company’s business. zational characteristics is encouraged within the workplace, and inclusion through networking, development and to this end, a number of policies and initiatives have • Blind selection and knowledge exchange, and the construction been undertaken throughout the year, as described below. In 2018 Cargill began a pilot project to hire profession- of a network of relationships, providing a wel- als for leadership positions through the “blind curricu- coming and inclusive working environment for In addition, tools such as the Global Anti-Discrimination lum” method. The recruitment model aims to eliminate employees who identify with this group. Policy, the Company’s Code of Conduct, the Global An- unconscious bias and boost the hiring of profession- ti-Harassment Policy, the Global Anti-Retaliation Policy and als according to their qualifications and competencies. Cargill was recognized Cargill’s Commitment on Human Rights, launched in early Thus, the company intends to increase the number of 2019, have led the company to being recognized as the women, black people, people with disabilities and LGB- as the most inclusive most inclusive company in Brazilian agribusiness in TI+ by leading teams, people and businesses. company in Brazilian the first edition of the Exame Diversity Guide 2019. It should be noted that in 2017, Cargill implemented a agribusiness, • Diversity Month “blind curriculum” pilot project with its interns. During re- In April 2019, Cargill invited a number of specialists to cruitment, it was defined that candidates would not be according to the first discuss alongside employees the aspects of inclusion able to indicate in their résumés which school they attend- and diversity. The main theme set for the diversity month ed, not even to the recruiters during the final interview. edition of Exame was “Balance to Thrive,” based on the global theme of International Women’s Day, “Balance for Better.” • Mulheres Operando no Brasil (MOB) Diversity Guide 2019 Established in 2015, the Mulheres Operando no Bra- sil (“Women Operating in Brazil”) (MOB) initiative invites annual report 42 2018/2019 PEOPLE 43

HEALTH AND SAFETY GRI 403-2, GRI 103-2, GRI 103-3, MATERIAL TOPIC: EMPLOYEES / HEALTH AND SAFETY

Safety is a priority for Cargill in Brazil and world- goal of zero fatalities by identifying and eliminat- Training on this concept is being offered across and prioritization of the potential for SIFs in rou- wide. To develop its strategy in this area, the ing risks in their tasks and the workplace. the company, and principles are being integrat- tine occupational tasks. It also provides action company follows the Global Environment, Health ed into the daily operations, with the specific for applying new controls, as well as reviewing and Safety Policy, whose goal is to define re- In fiscal year 2018/2019, Cargill maintained its fo- goal of avoiding human error and ensuring that the reliability of controls already in place. quirements based on OSHA (Occupational Safe- cus on prevention through the identification and all work is performed safely. • LIFEsaver Field Check and Deep Dive: ty and Health Administration) and ISO 14001 correction of exposures that could cause serious • Plant Inspection: An inspection method im- LIFEsavers are the 12 riskiest activities for em- (Environmental Management System), which set injuries and fatalities (SIF). Initiatives that prevent plemented in each area of the locations, us- ployees and contractors in all Cargill business- out criteria and practices to be followed by the such events are detailed below. ing both the observation of the condition of es. Each LIFEsaver identifies the key risks and business. the area and the tasks performed. When any minimum requirements for performing these For the next year, Cargill intends to further prior- non-compliance is found, immediate corrective activities in a safe manner. Field Checks are In this sense, Cargill continually works to reduce itize the zero harm strategy, so that the environ- action is taken and, where necessary, an action conducted to assess the implementation of serious injuries and fatalities to zero. Since 2010, ment, process safety, and food safety gain great- plan is created. LIFEsavers and related corporate requirements the company has partnered with other leading er visibility. One of the already started projects, • Risk Assessment: The tool is aimed at plan- through employee interviews and observation safety companies to understand why workplace according to this new vision, is the continuous ning with emphasis on safety before the start of conditions. If a major gap in program com- injuries occur and to improve the understanding improvement cycle of the Waste, Water and Air of the performance of tasks. The assessment pliance is found, a guideline is then provided to of what it means to reach level zero. The results programs. considers the relationship between workers, conduct a Deep Dive on the subject. of this study led to the creation of the Focus on the task, the equipment, and the work environ- LIFE program (elimination of life-altering injuries PROGRAMS THAT FOCUS ON THE ment, identifying risks and implementing con- HEALTH AND SAFETY IN NUMBERS and fatalities), implemented to help achieve the ELIMINATION OF SERIOUS INJURIES trol measures while reinforcing HOP concepts Following the implementation of the aforemen- AND FATALITIES (SIF) such as the identification of error traps. The tool tioned programs, with an emphasis on elimi- • Human Organizational Performance: The also helps employees focus on exposures that nating serious injuries and fatalities, Cargill has company is introducing a concept known as may cause serious injuries or fatalities (SIF). achieved the improvement of its health and safe- “Human Organizational Performance (HOP),” • SIF Risk Assessment: A methodology that ty indicators marked in green, as shown in the which helps companies to better understand guides the steps to a qualitative assessment table below. why injuries happen and how systemic thinking helps build a strong and effective safety culture.

HEALTH AND SAFETY INDICATORS 2019 target 2017/2018 2018/2019 SIFp Compliance Rate > 10.00 5.27 15.19 With support Control Hierarchy 60.00% 58.3% 50.0% from the SIF Maturity Index 2.50 2.03 3.24 SIFR 0.12 0.11 0.10 Focus on LIFE RIFR 1.00 0.76 0.76 Grades: - SIFp Compliance Rate: Risk situations reported by employees. This indicator enables corrective actions to be taken before program, Cargill accidents occur and the evaluation of the culture in reporting the identified risks. - Control Hierarchy: Measures the robustness of control measures to eliminate/replace or isolate exposure to risks that have caused a Reportable SIF/p accident (where there was medical treatment, lost time, or fatality). is continually - SIF Maturity Index: Provides a photograph of the maturity of programs for reducing serious injuries and fatalities. Locations are rated on a scale from 1 (emerging) to 4 (leader) every three months, and action plans are created to achieve leader maturity. - SIFR: frequency rate of reportable serious injuries and fatalities or potentially serious injuries. working to - RIFR: frequency rate of reportable accidents occurred. achieve the goal of zero fatalities annual report 44 2018/2019 PEOPLE 45

COMMUNITY TIMELINE – FUNDAÇÃO CARGILL KEY MOMENTS GRI 413-1, GRI 103-2, GRI 102-3, MATERIAL TOPIC: SUPPORTING SOCIO-ENVIRONMENTAL PROJECTS / VOLUNTEERING IN LOCAL COMMUNITIES

FUNDAÇÃO CARGILL

Promoting safe, sustainable and affordable initiative implemented in partnership with Enactus food Brazil to support projects developed by university 1973 With the mission of promoting safe, sustain- students in the country, who act locally and drive able and affordable food, the Fundação Cargill the social transformation of their communities. CREATION OF THE FUNDAÇÃO invests in the communities where the company In addition, in order to strengthen the cause of CARGILL WITH THE PURPOSE operates. One of its forms of action is through food and disseminate knowledge and informa- OF “CONTRIBUTING TO THE the Fundação Cargill call for proposals, through tion, the Foundation makes its website www. DEVELOPMENT AND PROMOTION which the institution supports the development alimentacaoemfoco.org.br available and has a OF AGRICULTURE-RELATED of social projects carried out by civil society or- corporate volunteer program called Semeando TECHNOLOGY AND SCIENTIFIC ganizations in line with its mission. Futuro (“Sowing the Future”), which encourages STUDIES”. employees to act positively on their communities. + 240 published books The Foundation is also responsible for the Ali- mentação em Foco (“Food in Focus”) Award, an In 2018, the Fundação Cargill celebrated its 570,000 copies distributed 45th anniversary, an important milestone for the institution. To celebrate this special date, the Access the full list and get your Foundation has produced a video4 that brief- copy at alimentacaoemfoco.org.br ly presents its trajectory of transformations and 1999 achievements. THE FUNDAÇÃO CARGILL BEGINS ITS MISSION OF “PREPARING THE 4. https://www.youtube.com/watch?v=KH9ar0VOfIA NEXT GENERATION TO SUCCEED IN EDUCATION, WORK, AND 2012 LIFE!”.

+ MORE THAN 1 MILLION THE FUNDAÇÃO CARGILL HAS THE MISSION OF PROMOTING students assisted by educational programs between 1999 and 2012. HEALTHY, SAFE, SUSTAINABLE AND AFFORDABLE FOOD FROM THE FIELD TO THE CONSUMER.

About 50,000 people assisted annually since 2012 annual report 46 2018/2019 PEOPLE 47

FUNDAÇÃO CARGILL CALL FOR PROPOSALS In 2018, the Fundação Cargill selected nine proj- ceived technical and financial support from the ALIMENTAÇÃO EM FOCO AWARD ects through its Call. Located in seven Brazilian Fundação Cargill. Developed by the Fundação Cargill in partnership with Enactus Brasil, the Alimentação em cities, the institutions responsible for implementing Foco Award has the main goal of recognizing community entrepreneurship initiatives by these projects received financial and management Comer na escola serve pra quê? Project university students that contribute to safe, sustainable and affordable food in communities support for social transformation and value cre- Developed by Instituto Avisa Lá, the project con- located in various regions of Brazil. The initiatives have a direct and indirect impact on ation in the food chain in their communities. What tributes to the development of healthier eating communities, generate income, move the vegetable distribution chain, increase the cultivation determined the selection of these initiatives was practices in the network of preschools in the city structure of farmers, and encourage local entrepreneurship. the possibility of having a positive impact on the of Itapira, in the interior of São Paulo. The initia- food area and the potential for these practices to tive supported the Municipal Department of Edu- Each year, 15 teams are selected to receive financial support and technical mentoring for the multiply to other locations and institutions. These cation in the training of professionals responsible full development of the projects. At the end of the cycle, two winners are selected and granted projects, alongside those started in the previous for the school meals, which contributed to the a financial subsidy to continue and improve the project. year, have benefited more than 24,000 people. change of procedures, services and eating rou- tines in the schools. In addition, activities were Among the supported projects, the following carried out so that the children could build knowl- stand out: edge, attitudes, and procedures related to eating to achieve healthier habits, a work that was also Frutos do Cerrado Project extended to the families of these children. In western Bahia, the Instituto Avançado de Ensino SEMEANDO FUTURO – CARGILL’S CORPORATE VOLUNTEERING PROGRAM Superior de Barreiras has set up a research and Bota na Mesa Project A volunteer is a person who, out of interest and community spirit, devotes part of their time, technology generation structure to add value to the Developed by Fundação Getúlio Vargas, the Bota work and talent, without any compensation, to activities aimed at social well-being. Since fruits of the Cerrado biome, enabling and promot- na Mesa Project sought to include family farming 1997, Cargill’s employees have sought to enrich the communities where they live through the ing entrepreneurship in the rural community. in food chains in large urban centers. The main Corporate Volunteering Program – Semeando Futuro. goal was the mobilization of several food chain In 2018, the Frutos do Cerrado Project received stakeholders to talk about the main challenges With workshops, games, and lectures that address food in a simple and objective manner, support from the Fundação Cargill for research of the inclusion of family farming, building action employees make a difference in the communities. The Semeando Futuro volunteers also act on a seasonal fruit from the region known as ca- guidelines regarding priority challenges, identify- as “mentors” to tertiary-sector organizations during the Fundação Cargill call for proposals juí. The idea is to extend the program to other ing innovative solutions for the agri-food system, Process and to student teams in the Alimentação em Foco Awards. typical fruits of the region, thereby increasing the and connecting them to the project network, in understanding and mapping the economic viabil- addition to supporting and disseminating the In 2018, 1,051 volunteers worked 2,666 hours and assisted 19,739 people across Brazil. ity and nutritional properties of the fruits, as well adoption of guidelines built throughout the devel- as training local farmers to produce them, con- opment of the initiative. serving the native species of this biome. Fazenda Aquapônica Urbana Project Alto Arapiuns Project Developed by the Associação Reciclázaro, the The project carries out initiatives with an empha- Fazenda Aquapônica Urbana Project aimed to NUTRIQUIZ sis on improving the well-being of the riverside implement two new urban food production tech- The NutriQuiz app, launched in 2016, is used by the Fundação Cargill to interact with the population of the Arapiuns River drainage basin niques, combining fish and plant breeding with the public and identify relevant topics. Available on Google’s Play Store and on Apple’s App Store, region, one of the main regions of the Amazon use of vertical aquaponics and aeroponics. The it consists of a questions & answers game for food education, with 400 questions grouped by rainforest in Pará, 130 kilometers from the city goal was to provide knowledge on the process- subject, in which knowledge on balanced eating habits is presented free of charge to anyone of Santarém. For the third consecutive year, the es and expansion of the technique, by providing interested. Since its launch, the app has been downloaded more than 7,000 times. project – which is part of the Programa Alto Ara- training to the students of the institution, as well piuns de Desenvolvimento Sustentável (PAADS), as stimulating the increase in food production and To learn more about the work and cause of the Fundação Cargill, please visit conducted by the Social Directorate of the CTA optimization of spaces in urban areas. https://alimentacaoemfoco.org.br. Flying Club of São José dos Campos (SP) – re- annual report 48 2018/2019 PEOPLE 49

SOCIAL GASTRONOMY MOVEMENT HUMAN RIGHTS COMMITMENTS GRI 102-12, GRI 408-1, GRI 409-1, GRI 412-1, GRI 412-2, GRI 412-3, GRI 103-2, GRI 103-3 Gastromotiva – a Brazilian nonprofit organization – ment of new Social Gastronomy Centers in com- and Cargill joined forces in 2018 to globalize the So- munities around the world, increasing the positive Cargill works in partnership with governments are also implemented on specific causes, such cial Gastronomy Movement, which uses the power impact on a global scale. and social welfare organizations to address hu- as child sexual abuse on Brazilian highways, of food to address social inequality, improve nutrition man rights issues, including forced labor, child slave labor, and awareness of LGBTI+, women, education, eliminate food waste, and create jobs. Gastromotiva, a pioneer in the Social Gastronomy labor, and other illegal practices. black people and disabled persons in the labor Movement, was founded in 2006 by chef David market. Given that hunger, waste, lack of opportunity and Hertz and offers free vocational training in cooking, Following its Code of Conduct, Cargill is commit- poor nutrition are global challenges that require joint entrepreneurship lessons, and nutrition education. ted to treating people with dignity and respect, To reinforce its commitment and performance action, Cargill believes that gastronomy can play a More than 5,000 students have been trained. both in the workplace and in the communities in this area, in February 2019, the company key role in tackling these issues. The company is a where it operates. All company operations are launched its Commitment on Human Rights5, a founding partner of the Movement and has signed a The benefits of their actions can be seen at Refet- subject to verification processes: direct purchase policy that contains principles and guidelines for three-year commitment, offering a total investment torio Gastromotiva, a community kitchen in Rio de of materials and inputs, for example, are gov- conducting its business in three main areas: at of $1.5 million worldwide. Janeiro that serves as a school and a restaurant. In erned by the Supplier Code of Conduct, which work, in the supply chain, and in the communi- addition to preparing delicious and healthy meals sets the rules for supply and whose formal ac- ties where it is present. The partnership was announced at the World Eco- made from surplus food that would otherwise be ceptance is a condition for participation in any nomic Forum in Davos, Switzerland, and will feature wasted, the meals are served to individuals in social purchasing process within Cargill. Additionally, all the launch of an online platform and the establish- vulnerability conditions. In 2018, more than 54,000 contracts and agreements signed by the com- meals were served. pany have clauses that address human rights issues, such as the eradication of slave and child Both Cargill and Gastromotiva focus on the following labor. purposes: ensuring access to food, avoiding food waste, creating opportunities in the food and agricul- Regarding training, all employees who join Cargill tural sector and providing sustainable nutrition while are trained in the ethical principles of the Code of promoting healthier living and stronger communities. Conduct. Training and awareness-raising events The action is in line with the United Nations Sustain- able Development Goals (SDGs). In early 2019 Cargill launched its Commitment on Human Rights, which came to reinforce the company's commitment and performance in this area

5. https://www.cargill.com/doc/1432136529974/ cargill-commitment-on-human-rights.pdf annual report 50 2018/2019 PEOPLE 51

National Pact for the Eradication of Slave Labor

Cargill is a signatory of this initiative that brings Labor (InPACTO), which aims to unite the private together Brazilian companies committed not sector and civil society organizations to prevent 2,331 truck to negotiate with those who exploit slave labor. and eradicate slave labor in production chains. In drivers Therefore, the company follows 10 commitments addition, the company plays an active role on the as a line of action to combat slave labor in its board of InPACTO. and 881 production chains. Through an automated blocking system for all employees As a member of the Pact since 2006, Cargill is an employers on the slave labor blacklist, Cargill en- institutional partner and founding member of the sures that no partnerships are established with participated National Pact Institute for the Eradication of Slave suppliers included on the official list of the La- bor Prosecution Service. Thus, it is not possible in the Na Mão to make purchases, sign agreements or receive Certa Program goods from companies or individuals involved in Consequently, if a company sells goods to Cargill slave labor. and it is included in the slave labor list at any time campaigns between the signing of the agreement, delivery of goods and/or payment of debts, the company may terminate all negotiations carried out until then with this supplier. This is all thanks to the sanction clauses described in the agreements with suppliers. As part of the initiative since 2007, Cargill carried Additionally, the standard draft agreement for raw out, in fiscal year 2018/2019, three campaigns materials, products and services currently has a in its units, spreading the goals of the Na Mão specific clause that establishes compliance with Certa Program to 2,331 truck drivers and 881 public policies regarding slave labor as a basic employees. condition of the business relationship, as well as restrictions and sanctions in the event that the The company also conducted the Amigo Fiel supplier is accused of using slave or similar labor. (“Loyal Friend”) Program, aimed at truckers’ health, with the presence of health profession- Business Pact Against Sexual Exploitation als who promote blood pressure measurements, of Children and Adolescents on Brazilian vaccinations, labor massage, and lectures on Highways traffic safety and child sexual exploitation, among Established by Childhood Brazil and the Ethos other activities. The event, which took place Institute, the Business Pact Against Sexual Ex- during the celebration of Truck Drivers’ Day, was ploitation of Children and Adolescents on Brazil- held at the Barreiras (BA), Primavera do Les- ian Highways encourages companies to commit te (MT), Uberlândia (MG) and Três Lagoas (MS) publicly to this cause. Signatory companies carry units. out a number of actions systematized by the Na Mão Certa (“On the Right Track”) Program. Climate change, land use, water resources, farmer prosperity and food loss and waste are Cargill's priority sustainability topics. PLANET annual report 54 2018/2019 PLANET 55

Based on the vision of “being the most trust- consumption cycle that, in addition to corrobo- In Brazil, in addition to the global priority topics, the company has developed its operation and worthy partner in agriculture, food, and nutrition,” rating the company’s objectives, contributes to the Sustainability Committee has defined local management methods in recent years. Cargill focuses on five key sustainability priorities: the conservation of natural resources. priority aspects. For the “land use” and “food loss climate change, land use, water resources, farm- and waste” topics, strategies, goals and a busi- In the next chapters, Cargill discloses the main er prosperity and food loss and waste. The company works worldwide with customers, ness action plan will be outlined. The “water” and environmental indicators in each of its business NGOs, farmers and other stakeholders to accel- “energy” topics are currently undergoing quarter- units and operations in Brazil, according to their As a differential, Cargill delivers to its custom- erate strategic planning and actions for each of ly follow-ups, as these are subjects around which materiality. ers products whose value includes quality and the five focus areas, always taking global and lo- sustainability, fostering a healthy production and cal factors into account. BUSINESS UNIT OPERATIONS Sugar and Ethanol* Cevasa - Plants: Ponta Grossa, Barreiras (BA), Primavera do Leste (MT), Três Lagoas (MS), Rio Verde (GO) Grains and Processing - Ports GLOBAL PRIORITY SUSTAINABILITY TOPICS - Warehouses Cocoa and Chocolate** Ilhéus (BA) and Porto Ferreira (SP Animal Nutrition Chapecó (SC), Itapira (SP), Toledo (PR) and Goianira (GO) Land Use Foods Mairinque (SP), Itumbiara (GO) and Goiânia (GO) Starches and Sweeteners Uberlândia (MG) and Castro (PR) Transforming our supply chain to be defor- Bioindustrial Mairinque (SP) and Ponta Grossa (PR) estation-free by 2030. * In the 2017 Annual Report, Cargill contemplated, for the Sugar and Ethanol unit, the operations of the Cevasa Plant (100% operated by Cargill) and the SJC Plant (Joint Venture). This year, the company chose to report environmental data only from its own unit (Cevasa). ** To improve EHS performance, the Cocoa and Chocolate units have implemented the Management System with a focus on ISO 14000 and 45000, whose scope is Porto Ferreira (SP): maltodextrin spray drying and corn syrup; chocolate and topping manufacturing; Climate Change production of functional systems (dry mixtures). Ilhéus (BA): receipt and processing of cocoa almonds for the production, storage, and shipment of cocoa liquor, powder, and butter. Reducing absolute emissions in our operation by 10% by 2025, with the 2017 baseline.

Water Resources Increasing water use efficiency by 5% by 2020 with the 2015 baseline.

Farmer Prosperity Providing training on good agricultural practices and improving market access for 10 million farmers by 2030.

Food Loss and Waste Driving food system innovation to prevent food loss and waste of food and other materials. PLANET 57

LAND USE GRI 102-11, GRI 102-12, GRI 304-2, GRI 103-2, GRI 103-3, MATERIAL TOPIC: LAND USE

Cargill believes that forests and agriculture can One of Cargill’s major highlights in this area in and must coexist to sustain the health of peo- fiscal year 2018/2019 was the updating of its ple and the planet. Therefore, it is committed to Policy on Forests6, whose main innovation was working in partnership with suppliers, customers, the preparation of a forest-related management NGOs, and governments to innovate and scale model that goes beyond a public commitment. real solutions in this regard. The new policy provides definitions of processes, analyses, risk assessments and implementation The company is committed to ending deforesta- of actions that are effective in the territories, as tion in its supply chains, respecting people and well as a holistic look at all areas of the company, defending human rights through its policies and not only the soy production sector. action plans. Other highlights were the launch of the South America Sustainable Soy Policy7 and the Com- mitment on Human Rights8, reinforcing Cargill’s intention to make the necessary changes to reach deforestation-free supply chains.

To learn more about the company’s key actions to eliminate deforestation and improve sustainability in its priority chains, please refer to the “Supply Chain” chapter on page 21. CARGILL’S FOREST PROTECTION PRINCIPLES

INCLUDE: • Ensuring supply transparency and practices to identify the most pressing issues and creating practical solutions based on the shared understanding of the challenges;

• Balancing the needs of the planet and people, encompassing inclusive growth and sustainable development;

• Transforming supply chains through collaborative efforts that drive change on scale.

6. https://www.cargill.com/doc/1432136544290/cargill-policy-on-forests.pdf 7. https://www.cargill.com/doc/1432136544508/cargill-policy-on-south-american-soy.pdf 8. https://www.cargill.com/doc/1432136529974/cargill-commitment-on-human-rights.pdf annual report 58 2018/2019 PLANET 59

WASTE 2017/2018 2018/2019 GRI 306-2, GRI 306-4 Hazardous Non-Hazardous Hazardous* Non-Hazardous Cargill’s strategic waste management is based on logistics, landfills, autoclaves, decontamina- Organic Organic the guidelines of the EHS (Environment, Health, tion (lamps), controlled incineration, reprocess- and Safety) Policy, the company’s global policy, ing, reuse, blending, re-refining, and recycling. and the National Solid Waste Policy (PNRS) of Non-hazardous waste is sent for recycling, in- 437,000.00 479,000.00 the Ministry of the Environment. dustrial landfills, construction waste landfills, Animal Animal 42,290.00 40,080.00 reuse, co-processing, composting, biological Nutrition Nutrition All waste is duly treated and disposed of accord- treatment, reuse, and recovery. Organic waste, in ing to the specifications for each type. Hazard- turn, is sent for composting, fertigation, landfills 45.08 63.04 ous waste is intended for co-processing, reverse and industrial landfills, and recycling.

50.00 134.00

Foods 10,269.00 Foods 6,247.00 WASTE DISPOSAL BY TYPE (T) GRI 306-2 19,796.44 25,189.75

2017/2018 2018/2019 63.95 155.78 Hazardous Non-Hazardous Hazardous* Non-Hazardous Starches and Starches and 5,705.64 13,966.27 Organic Organic Sweeteners Sweeteners

43,057.20 44,293.30

92.50 63.49

Sugar and Sugar and 6.00 41.00 801,272.37 715,090.85 Ethanol Ethanol Bioindustrial*** 214.00 Bioindustrial*** 211.00 0.00 0.00

22.00 16.00

402.89 284,594.00

Grains and Grains and 437,635.38 764,004.42 152,124.83 1,391,392.00 Processing** Processing** Total 1,013,640.81 Total 2,168,852.53 44,049.00 3,802,085.00

108,697.46 3,873,063.63

20.04 16.15

Cocoa and Cocoa and 1,764.97 1,865.41 Chocolate Chocolate * GRI 306-4: 100% of hazardous waste transportation is carried out nationwide, and 100% of this waste is treated. The total weight for transportation of this type of waste for each unit is the same as reported in the table above. 1,727.74 1,416.54 ** The variation in values between fiscal years in the Grains and Processing unit is due to the change in information management of plants, which were migrated to another system, making it impossible to enter data during the migration period. *** Data for fiscal year 2017/2018 include only the Mairinque operation. The fiscal year 2018/2019 includes Mairinque and Ponta Grossa, which is why the variation is greater between the years. annual report 60 2018/2019 PLANET 61

AÇÃO RENOVE O MEIO AMBIENTE The company also offers a reverse logistics man- Its operation is very simple: the registration is has partnered with Boomera to make invest- PROGRAM agement service, ensuring the collection, final made on the machine itself, by the app, or on ments in Recycling Cooperatives in various re- Since 2011, Cargill has carried out the Ação Ren- disposal, issuance of certificates of destination, the Internet. After registration, the consumer gions of the country. There are currently 14 Co- ove o Meio Ambiente Program, which offers con- indicators, and full traceability of the collected enters their Taxpayer ID (CPF) number on the operatives supported in nine Brazilian states. sumers a practical and sustainable alternative for waste. The last step is the production of biodies- machine and inserts their packages, earning the environmentally sound disposal of vegetable el, which is a cleaner and renewable source fuel. points in a Loyalty Program. Points can be re- The project makes a diagnosis of cooperatives oils and fats. The program is developed through deemed for mobile credits, Bilhete Único cred- to identify their needs and, based on the results, the Liza brand and works as a front for education REVERSE PACKAGING LOGISTICS its (public transportation), electricity bill dis- develop an action plan that includes regulariza- and environmental awareness. It has over 1,000 To ensure compliance with the National Solid counts, and bookstore discounts, among other tion, infrastructure investments, capacity build- collection points distributed across 10 Brazilian Waste Policy, Cargill works on a circular econ- benefits. So far, more than 41,000 packages ing, management, and support to members. states (São Paulo, Rio de Janeiro, Minas Gerais, omy model, fostering its recycling chain and have been collected. Goiás, Santa Catarina, Paraná, Rio Grande do encouraging communities to recycle. Some ex- Cargill also has a partnership with the NGO Sul, Mato Grosso do Sul, Bahia, and Pará)9 and amples of actions that promote the recycling of • Cooperativas de catadores Recicleiros, which develops the CIDADE+ Pro- has collected to date over 3.5 million liters of veg- company packaging are: The recycling system in Brazil is highlighted by gram, a benchmark in the development of the etable oil and fat residues. Of this total, 853,078 the work of the Recycling Cooperatives, scat- Reverse Logistics system in various Brazilian liters corresponds to 2018. • Casa Soma Vantagens tered across the country. Typically, they need municipalities. Casa Soma is a “house” based in the district of support to improve their structures and technical Last year, besides the collection points available Grajaú, in the São Paulo state capital, which is capacity to absorb a larger volume of material in shopping malls, supermarkets, and bakeries, part of the Soma Vantagens Program, whose and generate better income for their members. there has been an intensification of environmental goal is to change the behavior of the population education actions in schools. There are already through incentives. After applying and receiving For this reason, Cargill, alongside ABIOVE (Bra- 20 municipalities with oil collection in schools, a card, people can deliver packaging for recy- zilian Association of Vegetable Oil Industries), the main highlight being the city of Mairinque, cling and earn points, which can be redeemed in the interior of São Paulo: it features collection for courses, exams, basic food items, super- points for oil in all 39 municipal schools, and the market discounts, and other benefits. Program has an exclusive Environmental Educa- tor, who works in partnership with the Secretariat Today, more than 700 families are registered, of Education and the Secretariat of the Environ- and more than 1,000 exchanges have been ment of the Municipality. made. Many people have been able to exchange their waste for courses such as mani- In addition to making oil delivery points available cure and pedicure, cutting and sewing, coding to communities, the company offers the Program for non-programmers, and services such as to Food Service customers who use Cargill prod- ophthalmology consultations. ucts in restaurants across Brazil. • Retorna Machine To encourage consumers to recycle the Liza, Pomarola, and Elefante product packaging, Cargill has invested in innovation and technolo- The Ação Renove gy and has partnered with Triciclo, deploying 7 o Meio Ambiente Return Machines in the São Paulo Metro Area, in supermarkets, universities, and subway sta- Program, in 2018, led tions. These machines, common in Europe, of- fer an extra option for people to participate in to the correct the recycling process. destination of more than 850 thousand liters of 9. The complete list with all collection points is available at used cooking oil https://liza.com.br/sustentabilidade/ annual report 62 2018/2019 PLANET 63

CLIMATE CHANGE

GRI 305-1, GRI 305-2, GRI 305-4, GRI 305-7, GRI 103-2, GRI 103-3, SCOPE 1* MATERIAL TOPIC: CLIMATE CHANGE GRI 305-1

DIRECT GREENHOUSE GAS EMISSIONS Reducing greenhouse gas emissions in produc- Cargill’s commitment is in line with the goals pre- 2017/2018 2018/2019 Variation (TCO EQ) tion, industrial and transportation processes is sented by the scientific community of keeping 2 Cargill’s main goal in this area. global temperature increases below 2 degrees Sugar and Ethanol 12,064.32 11,052.97 -8% Celsius. The company’s targets encompass emis- Grains and Processing 23,704.00 20,764.00 -12% By 2017, the company had a global target of sions known as Scope 1 and 2 and correspond Cocoa and Chocolate 5,332.23 5,861.14 10% 5% reduction in greenhouse gas (GHG) emis- to reductions of about 1.25 million metric tons of Starches and Sweeteners** 3,498.00 2,912.00 -17% Bioindustrial*** 1,976.00 8,047.00 307% sions intensity by 2020, considering fiscal year carbon dioxide equivalent (CO2eq) each year. 2014/2015 as the basis. In February 2018, it Total 46,574.55 48,637.11 4% committed itself to a more ambitious target: a In this sense, during fiscal year 2018/2019, Car- BIOGENIC EMISSIONS (TCO EQ) 2017/2018 2018/2019 Variation 10% reduction in the absolute value of its glob- gill advanced on the topic and created a new type 2 al emissions by 2025, considering fiscal year of reporting in its management system, enabling Sugar and Ethanol 575,213.45 549,467.42 -4% 2016/2017. This means that, even as the com- the monitoring and management of its absolute Grains and Processing 745,401.00 605,196.00 -19% pany grows, emissions are expected to reduce. emissions, according to the new target. Cocoa and Chocolate**** 9,105.33 10,471.00 15% Foods***** 115,000.95 116,828.33 2% Also related to the topic, Cargill has goals of in- Total 1,444,720.73 1,281,962.75 -11% * Calculations include the CO , CH , NH , N O, and HFC gases. Cargill Animal Nutrition has no direct emission sources. creasing energy efficiency and increasing the use 2 4 4 2 ** Includes only the Starches and Sweeteners unit of Castro. The Uberlândia unit does not control direct emissions. of renewable energy – strategies that also con- *** Data for fiscal year 2017/2018 include only the Mairinque operation. Data for fiscal year 2018/2019 include Mairinque and Ponta Grossa, which is why the variation is greater between the years. tribute to reducing emissions. **** Includes only the Cocoa and Chocolate unit of Ilhéus. The Porto Ferreira unit does not control biogenic emissions. ***** The Foods unit does not measure direct GHG emissions, only biogenic emissions. Accordingly, the amount published in the 2017 Annual Report is incorrect. The results of the company’s emission indicators, as well as variations between fiscal years, are detailed in the following tables. SCOPE 2* GRI 305-2

INDIRECT EMISSIONS DERIVED FROM 2017/2018 2018/2019 Variation ENERGY ACQUISITION (TCO2EQ) Sugar and Ethanol** 78,68 153.57 95% Grains and Processing 19,208.00 16,411.00 -15% Cocoa and Chocolate*** 2,621.00 2,911.00 11% Animal Nutrition 2,46 2.48 1% Foods 7,373.00 7,845.00 6% Starches and Sweeteners**** 11,800.00 10,615.00 -10% Bioindustrial***** 570.00 1,224.00 115% Total 41,653.14 39,162.05 -6%

* Calculations include CO2, CH4, and N2O gases. ** The significant variation is due to higher energy consumption in fiscal year 2018/2019, caused by factors such as increased production and plant maintenance. *** Includes only the Cocoa and Chocolate unit of Ilhéus. The Porto Ferreira unit does not control indirect emissions. **** Includes only the Starches and Sweeteners unit of Castro. The Uberlândia unit does not control indirect emissions. ***** Data for fiscal year 2017/2018 include only the Mairinque operation. Data for fiscal year 2018/2019 include Mairinque and Ponta Grossa, which is why the variation is greater between the years. annual report 64 2018/2019 PLANET 65

FOODS**** 2017/2018 2018/2019 Variation INTENSITY OF GHG EMISSIONS (T CO2/T PRODUCTION)* GRI 305-4 NOx 52.09 81.90 57% SOx 0.00 0.00 - BUSINESS UNIT 2017/2018 2018/2019 Variation Volatile Organic Compounds (VOC) 9.58 9.58 0% Grains and Processing 0.0013 0.0013 0% Particulate Matter (PM) 52.10 105.95 103% Cocoa and Chocolate 1,699.2000 1,716.4200 1% Total 113.77 197.43 74% Foods** 0.2600 0.2900 12% Starches and Sweeteners*** 0.0400 0.0300 -25% STARCHES AND SWEETENERS 2017/2018 2018/2019 Variation Bioindustrial**** 0.0700 0.4700 571% NOx 148.60 104.45 -30% Total 1,699.5713 1,717.2113 1% SOx 106.09 115.70 9% * The Sugar and Ethanol unit does not perform this measurement. Accordingly, the amount published in the 2017 Annual Report is incorrect. Volatile Organic Compounds (VOC) 5.03 0.06 -99% ** The calculation for the Foods unit emissions intensity was based on biogenic emissions since there is no control of direct gross GHG emissions. Particulate Matter (PM) 447.02 348.26 -22% *** Includes only the Starches and Sweeteners unit of Castro. The Uberlândia unit does not control the intensity of emissions. Total 706.74 568.47 -20% **** Data for fiscal year 2017/2018 include only the Mairinque operation. Data for fiscal year 2018/2019 include Mairinque and Ponta Grossa, which is why the variation is greater between the years. **** Significant variations of NOx and PM are explained by the system’s operational variation at the time of collection, which is used on an ad-hoc basis.

NOX AND SOX EMISSIONS AND OTHER SIGNIFICANT ATMOSPHERIC EMISSIONS (T)* 5TH CARGILL SUSTAINABILITY AWARD GRI 305-7 Targeted at employees, interns and third parties, in addition to the waste generated from the cocoa almond process- SUGAR AND ETHANOL 2017/2018 2018/2019 Variation the Cargill Sustainability Award is a competition ing at the Ilhéus plant. The waste is mixed at a specific location NOx 722.94 564.04 -22% sponsored by the company in Brazil to acknowl- and later processed and distributed on the plantations as fertilizer, SOx 0.00 0.00 - edge and reward sustainable practices and reducing costs for the purchase of synthetic fertilizers and lowering Volatile Organic Compounds (VOC) 0.00 0.00 - Particulate Matter (PM) 159.21 165.33 4% projects at Cargill or in the communities where GHG emissions. Previously, the waste was sent to landfills and/or Total 882.15 729.37 -17% the company operates. In its 5th edition, held in incineration plants. 2019, the award presented the theme “Green- GRAINS AND PROCESSING 2017/2018 2018/2019 Variation house Gases.” NOx 442.00 361.00 -18% RESULTS ACHIEVED SOx 72.00 73.00 1% The authors of the winning projects received a Volatile Organic Compounds (VOC) 1,169.00 873.00 -25% trophy and a gift certificate of R$ 1,000. In addi- Particulate Matter (PM) 402.00 322.00 -20% tion, they were invited to attend a management Total 2,085.00 1,629.00 -22% meeting at the headquarters in São Paulo to Emission reduction: 330 present their projects to Cargill’s directors. Learn metric tons CO eq/year COCOA AND CHOCOLATE** 2017/2018 2018/2019 Variation 2 NOx 77.84 188.69 142% more about the awarded projects below: in production (compared Sox 0.00 0.00 - to what would be emitted Volatile Organic Compounds (VOC) 0.00 0.00 - Fertile Compound using chemical fertilizer) Particulate Matter (PM) 997.81 1,242.18 24% The project proposes the generation of value from Total 1,075.65 1,430.87 33% the destination to the cocoa almond integument (seed husk that is removed during the grinding ANIMAL NUTRITION*** 2017/2018 2018/2019 Variation process) and the boiler ash that generates energy, NOx 0.00 0.00 - SOx 0.00 0.00 - 396 Volatile Organic Compounds (VOC) 0.00 0.00 - families benefited Particulate Matter (PM) 4.48 3.40 -24% Total 4.48 3.40 -24% * The Bioindustrial unit does not measure atmospheric emissions. 1,123 ** NOx and SOx data include only the Ilhéus unit. The significant increase in NOx emissions is due to the higher biomass metric tons of organic consumption of this unit in 2018/2019. It should be noted that, despite this increase, emissions are within the acceptable limits compost produced per under the legislation. *** Animal Nutrition data do not include distribution centers and plants in Goianira, Chapecó, and Itapira. year annual report 66 2018/2019

Energy Efficiency Biogas Reuse The goal of this project is to improve the monitoring con- The idea is to reuse biogas produced in the wastewater trol of atmospheric emissions and boiler combustion, in- treatment process in anaerobic reactors as fuel for the crease the condensate return rate of the primary process, high-pressure boiler at the soybean oil refinery in Uberlân- and reduce deaerator steam consumption, thereby re- dia (MG). Today, the boiler uses LPG (Liquefied Petroleum ducing biomass and atmospheric emissions. Developed Gas) as its fuel for burning and steam generation, and the at the Goiânia unit, the project implemented the following biogas produced is burned and discharged into the at- actions: installation of two oximeters, three opacimeters mosphere. The project aims to eliminate LPG consump- and frequency inverters in the boiler engines, automation tion and install a process for the capture and treatment of in the boiler combustion control loop, and installation of a sulfur residues and to pump and transport gas from the heat exchanger in the condensed tank flash steam outlet. Wastewater Treatment Plant (WWTP) to the refinery boiler, which will be adapted with a burner for the new biofuel.

RESULTS ACHIEVED EXPECTED RESULTS

Reduction in biomass Emission reduction:

consumption: 5,250 1,397 t CO2/year metric tons/year WATER

GRI 303-1, GRI 303-3, GRI 306-1, GRI 103-2, GRI In Brazil, in fiscal year 2018/2019, Cargill reported 103-3, MATERIAL TOPIC: WATER RESOURCES a 4% reduction in water consumption compared to the previous year. The reduction in water con- Emission reduction: Fuel consumption In addition to specific water management poli- sumption between fiscal years was due to the 5,911.6 metric tons reduction: 500,000 kg cies in its different business units, Cargill has a increased efficiency of water-related processes in of CO /year Savings of 22,246 2 LPG/year unique policy to conduct all its activities to pro- business units, exceeding the target for the fiscal m3 of water that tect the environment and the health and safety year (see the following tables). would be used for of employees, contractors, customers, and com- steam generation munities. The company’s overall goal is to in- A major highlight of the period was the creation of per year crease water use efficiency by 2020 and achieve a water reuse project at the Starches and Sweet- a reduction compared to the consumption for the eners unit in Uberlândia (MG). The initiative treats year 2015, which was 8.9 million m3. wastewater through purification processes, and the idea is to reuse 95 m3/h of treated water in cooling towers and reduce the unit’s drinking water consumption by 30%. This amount is equivalent to the daily consumption of a city with 17,000 inhabitants. annual report 68 2018/2019 PLANET 69

WATER WITHDRAWN BY SOURCE (M3) GRI 303-1

2017/2018 2018/2019 2017/2018 2018/2019

Surface water Groundwater Surface water Groundwater Surface water Groundwater Surface water Groundwater Rainwater Municipal supply Rainwater Municipal supply Rainwater Municipal supply Rainwater Municipal supply

849,702.64 841,566.24 0.00 0.00

Sugar and 23,824.00 78,070.00 489,862.75 Sugar and 393,649.15 Bioindustrial* Bioindustrial* Ethanol Ethanol 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

1,722,522.00 1,513,439.00 5,136,816.09 4,900,409.80

2,739,372.75 2,694,801.15 Grains and 1,405,834.00 Grains and 1,458,792.00 Total Total Processing Processing 0.00 0.00 33,446.00 33,784.00

29,901.00 43,053.00 1,292,000.17 1,243,533.93

68,388.00 65,175.00 WATER RECYCLED AND REUSED IN 2018/2019** Cocoa and 8,964.00 Cocoa and 15,329.00 Chocolate Chocolate GRI 303-3 33,446.00 33,784.00

64,883.17 60,756.85 623.320,65 8.872.528,88

0.00 0.00

Animal 23,605.00 Animal 34,520.00 Nutrition Nutrition 0.00 0.00

96.00 1,345.08

1,460,747.45 1,445,649.56

313,917.00 337,050.00 Percentage of Foods Foods water recycled and 0.00 0.00 reused: 7% 0.00 0.00 Water recycled Water 3 3 1,035,456.00 1,034,580.00 and reused (m ) withdrawn (m )

473,366.00 377,391.00 Starches and Starches and ** The total amount of recycled and reused water refers to the Sugar and Sweeteners Sweeteners Ethanol, Cocoa and Chocolate (Ilhéus), Animal Nutrition (Chapecó), 0.00 0.00 * Data for fiscal year 2017/2018 include only the Mairinque operation. Foods (Goiânia and Mairinque) and Starches and Sweeteners Data for fiscal year 2018/2019 include Mairinque and Ponta Grossa, (Uberlândia) business units. Other units do not reuse/recycle water in 1,197,120.00 1,137,045.00 which is why the variation is greater between the years. their processes or do not currently manage this data. annual report 70 2018/2019 PLANET 71

DIRECT AND INDIRECT WATER DISPOSAL GRI 306-1

2017/2018 2018/2019 2017/2018 2018/2019

Direct Indirect Total Direct Indirect Total Direct Indirect Total Direct Indirect Total

0.00 0.00 866,332.00 900,120.00 Sugar and Sugar and Starches and Starches and 1,218,397.68 1,353,807.73 974,854.00 851,537.00 Ethanol Ethanol Sweeteners Sweeteners

1,218,397.68 1,353,807.73 1,841,186.00 1,751,657.00

794,033.00 610,430.00 13,730.00 18,263.00

Grains and Grains and 173,866.00 152,621.00 Bioindustrial** 0.00 Bioindustrial** 23,699.00 Processing Processing

967,899.00 763,051.00 13,730.00 41,962.00

78,792.22 83,976.00 2,670,085.22 2,536,269.00

Cocoa and Cocoa and 0.00 0.00 Total 2,369,664.68 Total 2,384,526.73 Chocolate Chocolate

78,792.22 83,976.00 5,039,749.90 4,920,795.73

0.00 3,840.00 * Animal Nutrition data do not include the Itajaí (SC) and Cuiabá (MT) plants and the Goiás Distribution Center, as these facilities only generate domestic sewage. The increase in effluent disposal between Animal Animal fiscal years is due to the purchase of a plant in 2018, in Goianira (GO). 2,547.00 2,862.00 Nutrition* Nutrition* ** Data for fiscal year 2017/2018 include only the Mairinque operation. Data for fiscal year 2018/2019 include Mairinque and Ponta Grossa, which is why the variation is greater between the years. 2,547.00 6,702.00

917,198.00 919,640.00

Foods 0.00 Foods 0.00 SUSTAINABILITY IN THE TOMATO CHAIN

917,198.00 919,640.00 In partnership with Fundação Espaço Eco, ished product and the packaging recycling in- Cargill conducts the Life Cycle Analysis (LCA) dex. Based on this analysis it was possible to of all products in its tomato line. Research is reduce, for example, the use of water by 68% a valuable management tool that indicates the in the production of Extrato Elefante between eco-efficiency of the supply chain, consider- 2014 and 2017. Today, the company knows ing environmental and economic factors at all exactly the impact of each product and each stages of the process, from the extraction of package and knows where actions are needed natural resources to the distribution of the fin- to act to reduce this impact. ABOUT THE REPORT annual report 74 2018/2019 ABOUT THE REPORT 75

GRI 102-45, GRI 102-48, GRI 102-50, GRI 102-52, Notwithstanding, to ensure more effective mea- GRI 102-53, GRI 102-54, GRI 102-56 surement of its management model and the way MATERIALITY information is analyzed, the company first pro- GRI 102-40, GRI 102-42, GRI 102-43, GRI 102-44, GRI 102-46, GRI 102-47 Based on the Global Reporting Initiative (GRI) duced its fiscal year-based report (June 2018 to methodology – considered the main international May 2019). Future reports will also be produced To define the content of the Annual Report and the three pillars of its sustainability strategy: tool for disclosing sustainability issues – Cargill according to this new model – with the exception its GRI indicators, in 2018, Cargill carried out a presents its 11th Annual Report, prepared in ac- of financial information, which will continue to be structured process of consultation with its stake- 1) Nourshing the world cordance with GRI Standards: Core option. reported according to the calendar year. holders, who responded on the topics of the 2) Protecting the planet company’s sustainability strategy. 3) Enriching our communities The information reported here is based on indica- Regarding the report’s chapters structure , Car- tors of Cargill Alimentos Ltda. and its main sub- gill opted for a new form of presentation, based Over two months, online consultations were con- According to a prioritization analysis methodolo- sidiaries in Brazil, including Cargill Agrícola S.A., on the global communication tool for Corporate ducted with employees and external audiences, gy, the Corporate Affairs area took into account Banco Cargill, and Cargill Animal Nutrition. This Responsibility and Sustainable Development including suppliers and professionals involved the company’s global guidelines to validate the year, the company chose not to perform the ex- (CR+SD), which is based on 3 pillars: People, in corporate responsibility, environment, and most relevant topics and their respective indica- ternal verification of the document. Products, and Planet. government, among others. In addition, inter- tors. Cargill’s functional and business areas also views were conducted with industry experts and indicated their stakeholders, and the Corporate Until the previous year, Cargill reported data fol- Published annually, in Portuguese and English, non-governmental organizations. Affairs area was responsible for consolidating the lowing the calendar year (January to December). the document is addressed to all Cargill stake- stakeholders consulted for the preparation of this holders and provides transparent and objective With this work of qualified listening to stakehold- report. information, demonstrating the company’s stra- ers, Cargill mapped the priority topics, based on tegic evolution and its positive and negative social and environmental impacts.

PILLARS OF THE WHERE THE Questions, suggestions or requests for more MATERIAL GRI STANDARDS SUSTAINABILITY COMMITMENTS IMPACT OCCURS information about Cargill’s Annual Report TOPICS TOPICS STRATEGY GRI 103-1 2018/2019 can be sent to the email assuntos_ Encouraging the use of • Farmers [email protected]. Good agricultural technologies that promote • Suppliers - practices the application of good • Institutional partners agricultural practices. • Environment • Society Food safety and Promoting access to food 416: Customer safety and Nourshing our world • Customers nutrition through sustainable logistics. health • Consumers Use of innovative Innovation in the technologies in food • Farmers - food system production, transportation • Society and consumption. Promoting the construction • Society 304: Biodiversity of financial mechanisms that • Institutional partners 307: Environmental compliance Land use promote forest protection and • Customers 411: Rights of indigenous and the development of Brazilian • Environment traditional peoples agriculture.

Protecting our planet Water preservation (reducing impacts on withdrawal from • Society sources and ensuring that 303: Water Water resources • Institutional partners effluents are in adequate 306: Effluents and waste • Environment condition for release into water bodies). annual report 76 2018/2019 GRI CONTENT INDEX 77

PILLARS OF THE WHERE THE MATERIAL GRI STANDARDS SUSTAINABILITY COMMITMENTS IMPACT OCCURS TOPICS TOPICS GRI CONTENT INDEX STRATEGY GRI 103-1 GRI 102-55 Reducing the intensity of • Society greenhouse gas emissions Climate change • Institutional partners 305: Emissions in production, industrial, and • Environment GRI transportation processes. DISCLOSURE NOTES / REPORT PAGE OMISSION STANDARDS Protecting our planet 411: Rights of indigenous and GRI 101: FOUNDATION 2016 traditional peoples Evaluating the performance of Suppliers and • Suppliers 412: Human rights GENERAL DISCLOSURES suppliers and farmers based farmers • Farmers assessment ORGANIZATIONAL PROFILE on sustainability criteria. 414: Supplier social GRI 102-1 Name of the organization Pag. 12 assessment Activities, brands, products, and Promoting projects that GRI 102-2 Pag. 12 Support for socio- services increase access to safe, environmental • Society 413: Local communities healthy and sustainable projects GRI 102-3 Location of headquarters Pag. 12 foods. GRI 102-4 Location of operations Pag. 12 Strengthening partnerships Volunteering in with other organizations • Employees 413: Local communities local communities that focus on community • Society GRI 102-5 Ownership and legal form Pag. 12 development. GRI 102-6 Markets served Pag. 12 Valuing communities Creating innovative solutions GRI 102-7 The scale of the organization Pag. 12, 19 to change the way we work 403: Occupational health and Health and safety • Employees Confidential information: to promote the health and safety Due to Cargill’s data safety of our employees. Information on employees and privacy policy, it is GRI 102-8 Pag. 38 other workers not possible to report 406: Nondiscrimination employee information by 407: Freedom of association gender and age group. Ensuring a safe and inclusive and collective bargaining Employees • Employees GRI 102: GENERAL work environment. 408: Child labor DISCLOSURES 2016 GRI 102-9 Supply chain Pag. 21 409: Forced or compulsory Significant changes to the There were no significant changes in GRI 102-10 labor organization and its supply chain fiscal year 2018/2019. The precautionary principle is not formally adopted by Cargill in Brazil, but the company follows legally prescribed procedures to prevent or mitigate any damage to its operations that are potentially harmful to the environment, people or communities. In Precautionary Principle or the event of environmental accidents, GRI 102-11 approach Cargill has documented procedures for the prevention and remediation of any environmental damage. These procedures are part of the company’s formal verification processes in all its operations involving the transportation and storage of potentially environmentally harmful materials. GRI 102-12 External initiatives Pag. 49, 57 GRI 102-13 Membership of associations Pag. 86 annual report 78 2018/2019 GRI CONTENT INDEX 79

GRI GRI DISCLOSURE NOTES / REPORT PAGE OMISSION DISCLOSURE NOTES / REPORT PAGE OMISSION STANDARDS STANDARDS MATERIAL TOPICS STRATEGY ECONOMIC PERFORMANCE Statement from senior GRI 102-14 Pag. 4 Explanation of the material topic decision-maker GRI 103-1 Pag. 75 and its boundaries ETHICS AND INTEGRITY GRI 103: Management approach and its Values, principles, standards, and MANAGEMENT GRI 103-2 Pag. 19 GRI 102-16 Pag. 14, 16 components norms of behavior APPROACH 2016 Evaluation of the management GOVERNANCE GRI 103-3 Pag. 19 approach GRI 102-18 Governance structure Pag. 17 GRI 201: ECONOMIC Direct economic value generated STAKEHOLDER ENGAGEMENT PERFORMANCE GRI 201-1 Pag. 19 and distributed GRI 102-40 List of stakeholder groups Pag. 75 2016 100% of employees are covered by WATER GRI 102-41 Collective bargaining agreements collective bargaining agreements. Explanation of the material topic GRI 103-1 Pag. 75 Identifying and selecting and its boundaries GRI 102-42 Pag. 75 GRI 103: stakeholders Management approach and its MANAGEMENT GRI 103-2 Pag. 67, 68, 69 Approach to stakeholder components GRI 102-43 Pag. 75 APPROACH 2016 engagement Evaluation of the management GRI 103-3 Pag. 67, 68, 69 GRI 102-44 Key topics and concerns raised Pag. 75 approach REPORTING PRACTICE GRI 303: WATER GRI 303-1 Water withdrawal by source Pag. 67, 68 2016 GRI 303-3 Water recycled and reused Pag. 67, 69 Entities included in the GRI 102-45 Pag. 74 consolidated financial statements BIODIVERSITY GRI 102: GENERAL Explanation of the material topic Defining report content and GRI 103-1 Pag. 75 DISCLOSURES 2016 GRI 102-46 Pag. 75 and its boundaries material topic boundaries GRI 103: Management approach and its MANAGEMENT GRI 103-2 Pag. 57 GRI 102-47 List of material topics Pag. 75 components APPROACH 2016 Evaluation of the management Pag. 74 GRI 103-3 Pag. 57 approach In this report, Cargill reported health and Significant impacts of activities, GRI 102-48 Restatements of information GRI 304: safety data on a consolidated basis, GRI 304-2 products, and services on Pag. 57 BIODIVERSITY 2016 as opposed to by business unit, as in biodiversity previous years. EMISSIONS There were no adjustments to the Explanation of the material topic GRI 102-49 Changes in reporting GRI 103-1 Pag. 75 material topics and their boundaries. and its boundaries GRI 103: GRI 102-50 Reporting period Pag. 74 Management approach and its MANAGEMENT GRI 103-2 Pag. 62, 63, 64 The latest report published by Cargill components GRI 102-51 Date of the most recent report APPROACH 2016 corresponded to the year 2017. Evaluation of the management GRI 103-3 Pag. 62, 63, 64 GRI 102-52 Reporting cycle Pag. 74 approach Contact point for questions Pag. 62 , 63 GRI 102-53 Pag. 74 regarding the report The total reported emissions are an Claims of reporting in accordance GRI 102-54 Pag. 74 approximate number, as the units use with the GRI Standards different methodologies or standards for calculating emissions: Sugar and Ethanol, GRI 102-55 GRI content index Pag. 77 Grains and Processing, and Starches and Sweeteners use the GHG Protocol; GRI 102-56 External assurance Pag. 74 GRI 305: EMISSIONS the Ilhéus Cocoa and Chocolate unit GRI 305-1 Direct (Scope 1) GHG emissions 2016 follows CONAMA Resolutions 382/06 and 436/11; the Porto Ferreira unit uses Article 5 of COP 3 (United Nations Framework Convention); the Foods unit follows the annual emissions inventory for stationary sources of the State of São Paulo, 2009; The Bioindustrial unit uses the GHG Protocol methodology; and Animal Nutrition follows SEMA Resolution 016/14. annual report 80 2018/2019 GRI CONTENT INDEX 81

GRI GRI DISCLOSURE NOTES / REPORT PAGE OMISSION DISCLOSURE NOTES / REPORT PAGE OMISSION STANDARDS STANDARDS

Pag. 62, 63 Total amount: R$ 8,102,832.20 Energy indirect (Scope 2) GHG GRI 305-2 Regarding the calculation methodology, Descriptions: emissions consider the observation of indicator 1. Date of receipt: 3/22/2018 305-1. Amount: 500,000.00 Unit: Santarém Pag. 62, 64 Description: causing pollution of any kind, GRI 305: EMISSIONS at levels that result or may result in damage GRI 305-4 GHG emissions intensity Regarding the calculation methodology, 2016 to human health. consider the observation of indicator Status: Cargill has filed an appeal and is 305-1. awaiting a statement from the relevant Pag. 62, 64 environmental agency. Nitrogen oxides (NOX), sulfur 2. Date of receipt: 3/23/2018 GRI 305-7 oxides (SOX), and other significant Regarding the calculation methodology, Amount: 40,000.00 air emissions consider the observation of indicator Unit: Goiânia 305-1. Description of the violation: carrying EFFLUENTS AND WASTE out the activity of collecting, sacrificing and disposing of fish species found in Explanation of the material topic GRI 103-1 Pag. 75 the WWTP, in disagreement with the and its boundaries authorization obtained. GRI 103: Management approach and its Status: Cargill has filed an appeal, and MANAGEMENT GRI 103-2 Pag. 58, 59, 67, 70 components the environmental agency upheld the APPROACH 2016 arguments presented, pledging to file the Evaluation of the management GRI 103-3 Pag. 58, 59, 67, 70 proceeding. approach 3. Date of receipt: 4/26/2018 Information unavailable: Amount: 5,000,000.00 Cargill does not have Unit: Balsas Water discharge by quality and GRI 306-1 Pag. 67, 70 information on the quality Description: Purchase of 10,000 bags destination of wastewater, including of soybeans produced in an embargoed GRI 306: its treatment method. area. EFFLUENTS AND GRI 307: Status: Cargill has filed an appeal proving WASTE 2016 Non-compliance with ENVIRONMENTAL GRI 307-1 that it had no commercial relationship with Waste weight by type and disposal environmental laws and regulations the embargoed area. GRI 306-2 Pag. 58 COMPLIANCE 2016 method 4. Date of receipt: 1/8/2019 Value: 21.946,95 GRI 306-4 Transportation of hazardous waste Pag. 58, 59 Unit: Uberlândia ENVIRONMENTAL COMPLIANCE Description: Failure to fulfill the Explanation of the material topic determination of the accredited agent GRI 103-1 Pag. 75 and its boundaries regarding the analysis of particulate matter GRI 103: and nitrogen oxide in the company’s boiler Management approach and its MANAGEMENT GRI 103-2 emissions. components Our policy on environmental compliance Status: Cargill has filed an appeal and is APPROACH 2016 requires us to maintain compliance with Evaluation of the management awaiting a statement from the relevant GRI 103-3 applicable laws and regulations. approach environmental agency. 5. Date of receipt: 4/2/2019 Amount: 2,505,000.00 Unit: Guarujá – Shipping Agency Description: Causing, through the emission of effluents and release of oil waste, perishing of biodiversity specimens. Status: Cargill has filed an appeal proving that, as a shipping agency, it did not participate in the event that caused the damage. 6. Date of receipt: 4/15/2019 Amount: 35,885.25 Unit: Uberlândia Description: Contributing to alterations in the quality of the waters of Córrego do Salto. Status: Cargill has filed an appeal and is awaiting a statement from the relevant environmental agency. annual report 82 2018/2019 GRI CONTENT INDEX 83

GRI GRI DISCLOSURE NOTES / REPORT PAGE OMISSION DISCLOSURE NOTES / REPORT PAGE OMISSION STANDARDS STANDARDS OCCUPATIONAL HEALTH AND SAFETY CHILD LABOR Explanation of the material topic Explanation of the material topic GRI 103-1 Pag. 75 GRI 103-1 Pag. 75 and its boundaries and its boundaries GRI 103: GRI 103: MANAGEMENT Management approach and its Management approach and its GRI 103-2 Pag. 42 MANAGEMENT GRI 103-2 Pag. 49 APPROACH components components APPROACH 2016 20162016 Evaluation of the management Evaluation of the management GRI 103-3 Pag. 42 GRI 103-3 Pag. 49 approach approach Not applicable: The Operations and suppliers at GRI 408: CHILD requirements of the GRI 408-1 significant risk for incidents of child Pag. 49 LABOR 2016 GRI 403-2 indicator do labor not apply to Cargill, as FORCED OR COMPULSORY LABOR Types of injury and rates of injury, the company has its occupational diseases, lost days, own health and safety Explanation of the material topic GRI 403-2 Pag. 42 GRI 103-1 Pag. 75 and absenteeism, and number of indicators. Thus, the and its boundaries work-related fatalities company chose to GRI 103: Management approach and its report only the health MANAGEMENT GRI 103-2 Pag. 49 components and safety data for APPROACH 2016 GRI 403: which it has its own Evaluation of the management GRI 103-3 Pag. 49 OCCUPATIONAL management. approach HEALTH AND SAFETY 2016 Information not GRI 409: FORCED Operations and suppliers at available: Cargill OR COMPULSORY GRI 409-1 significant risk for incidents of Pag. 49 does not yet have LABOR 2016 forced or compulsory labor this systematized RIGHTS OF INDIGENOUS PEOPLE Workers with high incidence or information for all units. Explanation of the material topic GRI 403-3 high risk of diseases related to As from June 2019 GRI 103-1 Pag. 75 their occupation (beginning of the fiscal and its boundaries year 2019/2020), the Not applicable: the information will be GRI 103: Management approach and its company does not take reported and monitored GRI 103-2 MANAGEMENT components a specific management systematically. APPROACH 2016 approach to this topic, NON-DISCRIMINATION but intends to start Evaluation of the management monitoring indigenous Explanation of the material topic GRI 103-3 GRI 103-1 Pag. 75 approach lands in its soy chain. and its boundaries GRI 103: Management approach and its No situations were found relating to MANAGEMENT GRI 103-2 Pag. 49 GRI 411: RIGHTS the violation of the rights of indigenous components Incidents of violations involving APPROACH 2016 OF INDIGENOUS GRI 411-1 peoples. It should be noted that Cargill Evaluation of the management rights of indigenous peoples GRI 103-3 Pag. 49 PEOPLE 2016 will begin monitoring indigenous lands in approach its soy chain. GRI 406: NON- Incidents of discrimination and There were no such cases in the fiscal HUMAN RIGHTS ASSESSMENT DISCRIMINATION GRI 406-1 corrective actions taken year 2018/2019. Explanation of the material topic 2016 GRI 103-1 Pag. 75 and its boundaries FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING GRI 103: Management approach and its Explanation of the material topic MANAGEMENT GRI 103-2 Pag. 49 GRI 103-1 Pag. 75 components and its boundaries APPROACH 2016 GRI 103: Evaluation of the management Management approach and its GRI 103-3 Pag. 49 MANAGEMENT GRI 103-2 approach components APPROACH 2016 Evaluation of the management There is no interference from Cargill: GRI 103-3 approach each worker is free to found or join a trade union or even to participate GRI 407: FREEDOM Operations and suppliers in which in collective bargaining under the OF ASSOCIATION the right to freedom of association applicable law. GRI 407-1 AND COLLECTIVE and collective bargaining may be BARGAINING 2016 at risk annual report 84 2018/2019 GRI CONTENT INDEX 85

GRI GRI DISCLOSURE NOTES / REPORT PAGE OMISSION DISCLOSURE NOTES / REPORT PAGE OMISSION STANDARDS STANDARDS CUSTOMER HEALTH AND SAFETY Operations subject to human rights GRI 412-1 Pag. 49 impact analysis or assessments. Explanation of the material topic GRI 103-1 Pag. 75 and its boundaries Information not GRI 103: Management approach and its available: Cargill does MANAGEMENT GRI 103-2 Pag. 34 components not have the total APPROACH 2016 number of hours Evaluation of the management GRI 103-3 Pag. 34 of Human Rights approach Employees trained in human rights training conducted in GRI 412-2 Pag. 49 GRI 412: policies and practices. the reporting period. GRI 416: Assessment of the health and HUMAN RIGHTS Notwithstanding, 100% CUSTOMER HEALTH GRI 416-1 safety impacts of product and Pag. 34 ASSESSMENT 2016 of employees receive AND SAFETY 2016 service categories Code of Conduct Percentage of production volume training upon joining the manufactured in sites certified FOOD SECTOR – company. by an independent third party CUSTOMER HEALTH FP5 Pag. 34 according to internationally Significant investment agreements AND SAFETY recognized food safety and contracts that include management system standards GRI 412-3 human rights clauses or that Pag. 49 have undergone human rights MARKETING AND LABELING assessment. Policies and practices on LOCAL COMMUNITIES FOOD SECTOR – communication to consumers MARKETING AND FP8 about ingredients and nutritional Pag. 34 Explanation of the material topic GRI 103-1 Pag. 75 LABELING information beyond legal and its boundaries requirements GRI 103: Management approach and its MANAGEMENT GRI 103-2 Pag. 44 PROCUREMENT AND SOURCING components APPROACH 2016 FOOD SECTOR – Percentage of purchased volume Evaluation of the management GRI 103-3 Pag. 44 PROCUREMENT FP1 from Suppliers compliant with the Pag. 21 approach AND SOURCING company’s sourcing policy Operations with local community GRI 413: LOCAL GRI 413-1 engagement, impact assessments, Pag. 44 COMMUNITIES 2016 and development programs SUPPLIER SOCIAL ASSESSMENT Explanation of the material topic GRI 103-1 Pag. 75 and its boundaries GRI 103: Management approach and its MANAGEMENT GRI 103-2 Pag. 21 components APPROACH 2016 Evaluation of the management GRI 103-3 Pag. 21 approach New suppliers screened using GRI 414-1 Pag. 21 social criteria Information not available: Cargill does GRI 414: not have the details SUPPLIER SOCIAL required by the indicator Negative social impacts in the ASSESSMENT 2016 GRI 414-2 Pag. 21 regarding the total supply chain and actions taken number of suppliers evaluated and identified with negative social impacts. ANNEX annual report 88 2018/2019 ANNEX 89

LIST OF ASSOCIATIONS GRI 102-13

• Brazilian Association of Wholesalers and Dis- • Paranaguá Industrial and Agricultural Commer- • Paranaguá Association of Export Corridor Ter- • Brazilian Bar Association – São Paulo (OAB/SP) tributors (ABAD) cial Association (ACIAP) minals (ATEXP) • Santos Organized Port’s Manpower Manage- • Brazilian Agribusiness Association (ABAG) • Uberlândia Commercial and Industrial Associ- • Private Port Terminal Association (ATP) ment Agency (OGMO) ation (ACIUB) • Brazilian Association of International Banks • Arab Brazilian Chamber of Commerce (ARAB • Brazilian Association of Olive Oil Producers, Im- (ABBI) • Pro-Industrial Development Association of the CHAMBER) porters, and Traders (OLIVA) State of Goiás (ADIAL-GO) • Brazilian Business Communication Association • Port of Paranaguá Port Authority Council (CAP) • Integrated Nucleus for Junior Entrepreneurs (ABERJE) • Sugar and Alcohol Exporters Association (SIFE) (AEXA) • Brazilian School of Animal Nutrition (CBNA) • Brazilian Food Industry Association (ABIA) • Union of Maritime Navigation Agencies of the • Cocoa Processing Industry Association (AIPC) • Business Commitment to Recycling (CEMPRE) State of São Paulo (SINDAMAR) • Brazilian Chocolate, Cocoa, Peanut, Candy and Byproducts Industry Association (ABICAB) • American Chamber of Commerce (AM- • Biotechnology Information Council (CIB) • Union of Maritime Navigation Agencies of the CHAM-SP) State of Paraná (SINDAPAR) • Brazilian Vegetable Oil Industry Association • São Paulo State Industry Center (CIESP) (ABIOVE) • Minas Gerais Association of Supermarkets • Union of the National Food Industry (UNION) (AMIS) • São Paulo Regional Accounting Council (CRCSP) • Brazilian Association of Large Industrial Energy • Union of the Vegetable Oil and Byproduct In- Consumers and Free Consumers (ABRACE) • Association of Port Terminals and Cargo Trans- • Ethos Institute of Business and Social Respon- dustry of the State of São Paulo (SINDOLEO) shipment Stations of the Amazon Basin (AMP- sibility (ETHOS) • Brazilian Association of Energy Traders (ABRA- ORT) • Union of Port Operators of Paraná (SINDOP) CEEL) • Goiás Federation of Industries (FIEG) • Brazilian Association of Financial and Capital • Union of Port Operators of São Paulo (SOPESP)* • Brazilian Association of Supermarkets (ABRAS) Market Entities (ANBIMA) • Federation of Industries of Minas Gerais (FIEMG) • Amigos da Marinha Society of Paraná (SUA- • Brazilian Association of the Industrial Tomato • National Cotton Exporters Association (ANEA) • Federation of Industries of São Paulo (FIESP) MAR-PR) Productive Chain (ABRATOP) • National Cereal Exporters Association (ANEC) • Applied Tax Study Group (GETAP) • Union of the Industrial District of Uberlândia • Brazilian Association of Port Terminals (ABTP) (UNEDI) • São Paulo Association of Supermarkets (APAS) • Group of Institutes, Foundations, and Compa- • Guarujá Commercial and Business Association nies (GIFE) • Union of the Sugar and Alcohol Industry (ÚNICA) ** (ACEG)* • Paraná Association of Supermarkets (APRAS) • Brazilian Automation Association (GS1 BRAZIL) • Santarém Commercial and Business Associa- • Brazilian Association of Mineral Supplement In- tion (ACES) dustries (ASBRAM) • Brazilian Institute of Tax Law (IBDT) * Participation via JV TEG / TEAG • Competitive Brazil Movement (MBC) ** Participation via JV SJC Bioenergy annual report 90 2018/2019

CREDITS CARGILL EDITORIAL BOARD Ana Paula Oliveira Bárbara Anacleto Livia Souza Luciane Reis Márcia Cardelli Tainah Villela Yuri Feres IMAGES Cargill stock images GRI CONTENT, EDITING AND LAYOUT Visão Sustentável GRAPHIC DESIGN Juliana Fioroto PRINTING Pigma CORPORATE INFORMATION Avenida Chucri Zaidan, 1240 CEP: 04711-130 Sao Paulo (SP), Brazil Phone: +55 11 5099 3311 www.cargill.com.br