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Securing Better Food for the Future

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Securing Better Food for the Future Securing better food for the future Syngenta Sustainable Business Report 2018 Syngenta Our business model Our offer The Good Growth Plan Our operations Corporate information Non-financial performance Contents Overview We play a vital role in the 2018 in numbers 01 02 food chain to safely feed Chief Executive Officer’s Chief Executive statement 02 Officer’s statement the world and take care Our business model Creating value now and for of our planet. Through more than 150 listening the long term 04 sessions around the world with Our offer stakeholders from across the value chain, we now have a We will be the most Innovation with purpose 06 much better understanding of collaborative and trusted Crop Protection 08 what society expects from us Seeds 14 and what sustainable agriculture means to different groups. team in agriculture, The Good Growth Plan providing leading seeds Introduction 18 At a glance 19 and crop protection Make crops more efficient 20 04 08 14 innovations to enhance Rescue more farmland 23 Our business model Crop Protection Seeds Help biodiversity flourish 26 We’re constantly seeking new Market-leading crop protection Developing and producing the prosperity of farmers, Empower smallholders 28 ways to better use resources, products with broad coverage seed for farmers, commercial Help people stay safe 30 deliver value-adding products across extremely diverse growers, retailers and small wherever they are. and services, and create value geographies seed companies Look after every worker 32 for our stakeholders Our operations Resources we use Introduction 36 People 37 What we do Sustainable operations 40 Business integrity 43 What we create Corporate information The value we provide Board of Directors 46 Executive Team 48 Non-financial performance 18 36 52 Non-financial information 50 The Good Growth Plan Our operations Non-financial performance Non-financial performance The Good Growth Plan contributes Securing the long-term viability summary summary 52 to the sustainability of both our own of our business means using The summary presents data on our business and the wider world that resources with ever greater progress in four areas: The Good we serve efficiency in all our operations Growth Plan, People, Sustainable operations and Business integrity Syngenta’s Sustainable Business Report includes quantitative For further information and qualitative information on policies and actions taken regarding and answers to many our business and sustainability goals. “Questions about Syngenta”, It also serves as our annual Communication on Progress (COP) visit our corporate website: for the United Nations Global Compact. www.syngenta.com % Syngenta Overview Our business model Our offer The Good Growth Plan Our operations Corporate information Non-financial performance 2018 in numbers 27,732 Europe, Africa Employees4 North and Middle East America $13.5bn Asia Group sales Pacific Latin 8.3m 99.6% America People trained on safe use5 Suppliers included in sustainability and fair labor programs6 North America $10.4bn 2 Sales $m 3,514 Crop Protection sales1 Employees4 4,120 Research and Development sites 30 Production and Supply sites 30 Latin America Sales2 $m 3,646 Employees4 5,676 9 + Research and Development sites 21 Countries Production and Supply sites 19 Europe, Africa and Middle East $3.0bn Sales2 $m 3,877 Seeds sales2 Employees4,8 11,690 0.32 120 Research and Development sites 44 Recordable injury Research and Production and Supply sites 35 and illness rate7 Development sites Asia Pacific Sales2,9 $m 1,986 Employees4 6,246 104 Research and Development sites 25 Production and Supply sites 20 Production and Supply sites3 1 Including sales to Seeds 6 The seed supply chain represents about 2 Excluding Flowers 98 percent of the suppliers targeted by our 3 Including 4 multi-functional production sites sustainability and fair labor programs 4 Permanent full-time equivalent (FTE) as of 7 Per 200,000 hours, according to US September 30, 2018 OSHA definition 5 Includes smallholders reached 8 Including headquarters (Switzerland) through training reported under 9 Including China ‘Empower smallholders’ 01 Sustainable Business Report 2018 Syngenta Overview Our business model Our offer The Good Growth Plan Our operations Corporate information Non-financial performance Chief Executive Officer’s statement Continued innovation Our broad spectrum ADEPIDYN® fungicide 2018 was is now registered for use on more than 80 crops in the United States and – under the brand name MIRAVIS™ – for use on canola, grapes and potatoes in Australia and New a landmark Zealand. Our new generation fungicide AMPEXIO® WG Pepite® was launched in 11 European countries. In weed control, our first post-emergent broad-spectrum year for ™ herbicide, TALINOR , was launched in the US and Australia and controls more than 45 weeds. In France, CALARIS® herbicide is now Syngenta providing fast and effective broadleaf weed control in corn. MINECTO® continued its strong performance in the US, controlling insects in vegetables and specialty crops, and was introduced to growers in Spain and Columbia. We also continued our leadership and innovation in seed treatment, where FORTENZA™ Duo was introduced to African and Indian growers, helping them with early control of the devastating fall armyworm. We saw double-digit growth in acres committed to our data-driven AGRIEDGE It was our first full year of operations under the Record Free Cash Flow in 2018 Through more than 150 listening EXCELSIOR® farm management system, ownership of ChemChina, during which we sessions around the world with Sales increased in 2018 by 7 percent to while offers such as AGRICLIME™ – sharing acquired several new businesses, delivered $13.5 billion. We maintained profitability the risk of low rainfall – and HYVIDO® Cashback stakeholders from across the strong financial growth and strengthened our and record free cash flow of $1.76 billion. Yield Guarantee have provided growers with value chain, we now have a position as a thought leader. We continued to Crop Protection sales of $10.4 billion the confidence to invest in new technology. make a substantial contribution to ensuring much better understanding of increased 7 percent compared to 2017, The acquisition of FarmShots™ in the United that farmers can safely feed the world with solid recovery in Latin America and States and Strider® in Brazil further enhances what society expects from us today, while planning to sustainably feed good new product sales of SDHI fungicides our digital capability. and what sustainable agriculture future generations. in North America and Europe. Seeds sales of means to different groups. $3.0 billion were 6 percent higher, reflecting Along with the acquisition of Nidera™ Seeds in stronger performance in Latin America and 2018, we also purchased Abbott & Cobb™, a Eastern Europe. Our Flowers business vegetable seeds company. To ensure the right grew by 7 percent. leadership in our Seeds business, we have brought on a number of new hires and further developed internal talent. We are also opening a major global Seeds office in Chicago in the heart of US corn and soy growing regions. 02 Sustainable Business Report 2018 Syngenta Overview Our business model Our offer The Good Growth Plan Our operations Corporate information Non-financial performance Chief Executive Officer’s statement continued Contributing to sustainable agriculture We are demonstrating substantial increases In my remarks last year, I highlighted our in smallholder yields, improving on-farm commitment to working more closely and practices, with productivity across smallholder transparently with governments, NGOs reference farms up by 21.9 percent and society to collectively find the solutions compared to the 2014 baseline. At the same we need. Through more than 150 listening time, we were able to extend the number sessions around the world with stakeholders of smallholders reached through training from across the value chain, we now have a across the world to 6.1 million, bringing the much better understanding of what society cumulative total of people trained in safe use expects from us and what sustainable to 33.8 million, some two thirds more than our agriculture means to different groups. Our aim original 2020 target. has been to have a more direct and inclusive Our people are at the center of all we do conversation to help rebuild the trust between society and science. The sessions have None of this success would be possible helped us better understand our role so we without the dedication and passion of some can continue to build society’s confidence in 28,000 people of Syngenta. We depend on the farming and agricultural innovation sectors. their knowledge, expertise and commitment to bring innovation to farmers, collaborators and The Good Growth Plan: strong progress partners along the value chain. In 2018, we made excellent progress – in We continue to invest in capability some cases exceeding – the 2020 targets set development with the company-wide ‘Pulse down in The Good Growth Plan. Through our Survey’ providing us with excellent feedback commitments we have also contributed on where to focus our efforts in 2019. It is great significantly to the achievement of the United to see that engagement is highest among the Nations Sustainable Development Goals. millennials in our workforce, for it is this group In 2018, the greenhouse gas footprints from that represent the future of our industry. our reference farms showed an average efficiency increase of 8.8 percent compared And the future of our industry is bright. with the 2014 baseline. Across 1,443 reference 2018 has showed us what is possible when farms we have seen a 13 percent improvement we align as one team with one plan. Our work, in productivity since 2014 baseline, well on the in bringing sustainable agriculture solutions to way to the target of 20 percent. millions of farmers around the world, meeting the needs and expectations of society, while Working to actively promote conservation protecting and enhancing the environment, agriculture, we have exceeded the 2020 target matters more than ever.
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