Cocoa and Chocolate Contents Language Table of Contents

Language

Sustainability Progress Report 2018 - 2019 Cocoa and Chocolate Contents Language Table of Contents

Published May 2020

Introduction Community Consumer Responsible 3 President’s welcome Wellbeing Confidence Business

4 Our approach 12 Progress at a glance 18 Progress at a glance 24 Operating in a safe, responsible and 13 Spotlight: A localized 19 Spotlight: Connecting 5 Taking cocoa to sustainable way the cloud approach to tackle child data to measure and labor in Indonesia report on supply chain 7 Impact at a glance sustainability

Farmer Protect Transformation, About Livelihoods our Planet together 26 Cargill

9 Progress at a glance 15 Progress at a glance 21 Progress at a glance 28 Cocoa and Chocolate

10 Spotlight: Beyond 16 Spotlight: From 22 Spotlight: Coop 29 This report cocoa: taking a holistic satellites to farmers: a Academy 2.0: look at farmer resilience multi-layered approach Strengthening more against deforestation cooperatives with management tools

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 2 Introduction Language Dear stakeholders

The world is faced with extraordinary chal- Digital technology enables us to provide our customers Transparency is imperative and we are committed to con- lenges. The ongoing COVID-19 pandemic is with fast and transparent sustainability data, helping them tinuously improve and refine how we show the progress measure and report the impact they achieve through the we make. This report focuses on progress both towards testing our resilience as a global community. Cargill Cocoa Promise. As of this year, half of the cocoa our goals and against the data of the previous year; it high- This reminds us how interconnected our world in our global direct supply chain is traceable from farm to lights many great accomplishments. We reached more than is, and how important it is to look out for factory, with the help of barcoded cocoa bags and digital 210,000 farmers with training to strengthen their capacity those who need it most: the cocoa-growing Cooperative Management Systems. Today, 72 percent of on Good Agricultural Practices, we scaled one-on-one farmers are reached with GPS polygon mapping. In combi- coaching to farmers in all five sourcing countries, and we communities. Cargill is dedicated to creating nation with satellite imagery, this enables us to effectively reached a total of 2,491 communities with tailored commu- lasting benefits for cocoa farmers, their fami- monitor deforestation risks. On our website, we started to nity programs. This would not have been possible without lies and communities, and empowering them disclose all farmer organizations in our direct sourcing net- the ongoing dedication of our customers, colleagues, NGOs, to thrive. This is more relevant than ever. work in Ghana and Côte d’Ivoire, with the other countries to governments and, above all else, the farmers and farmer follow. For these technologies to generate lasting impact for organizations. I want to thank you all for being such valuable farmers, the partnership and actions by all actors are crucial partners on this journey. There is a lot more to be done, but Increasingly I see how embedding technologies and part- levers to scale up. I am confident that if we continue to connect our efforts, we can achieve lasting positive impact, together. nerships in the sector enable us to continuously drive value Several noteworthy steps are taking place in the industry. for farmers, customers and the sector at large. With the We have seen the governments of Ghana and Côte d’Ivoire Sincerely, help of mobile applications, we provide farmers with more be a force for sustainability with initiatives like the Living tailored support, information and training, so they can Income Differential and exploring the setting of sub-regional prosper while considering the environment. These appli- standards. These efforts contribute towards standards that cations also deliver fair and secure electronic payments to meet our expectations and those of our customers for a farmers, as well as swift, effective communications when sustainable cocoa sector. Year on year, I see the network immediate issues arise, for instance, on protective measures of stakeholders that are willing to drive change collabora- Harold Poelma against COVID-19. tively expanding and deepening its impact. When we align President Cargill Cocoa and Chocolate on interventions, make data openly available and measure progress together, I am positive we will achieve more transformational results.

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 3 Introduction Language Connected for More: our approach towards a thriving cocoa sector

Our vision we continuously monitor, evaluate and Farmer Community Protect report our impact. This also includes how Livelihoods Wellbeing our Planet At Cargill we take the responsibility and the we source other chocolate ingredients, run opportunity to act across the cocoa sector, GOAL GOAL GOAL our factories safely, decrease our environ- We will champion We will enhance the safety We will promote connecting different stakeholders to drive mental impact and govern our business Our goals professional cocoa farming and wellbeing of children environmental best lasting change. We aim to connect every practices, to strengthen the and families in cocoa practices in our business with integrity. socio-economic resilience farming areas and across our supply chain dot in the cocoa supply chain for maximum of cocoa farmers and transparency using cutting-edge digital their communities TARGET TARGET 1 million community Zero deforestation in the technologies where possible. We take a Our principles TARGET members benefiting from cocoa supply chain holistic look at the sustainability of cocoa 1 million farmers benefiting the services of the Cargill To reach our goals, every initiative is guided Read more and work with our partners towards a from the services of the Cocoa Promise by the following principles: Cargill Cocoa Promise common cause: a thriving cocoa sector for Read more generations to come. Transparency and Assurance: We build a Read more supportive market ecosystem by promoting supply chain, financial and impact trans- Our commitment parency, including third-party assurance In 2012, we launched the Cargill Cocoa through certification programs. Promise. This is our commitment to accel- Evidence-based: We continuously learn and erate progress toward a transparent global adjust to improve the impact of our work and GOAL TARGET Read more cocoa supply chain, to enable cocoa better equip all of our partners for a more We will help consumers 100% farm to factory Consumer around the world choose traceability of our cocoa beans farmers and their communities to achieve sustainable future. sustainable cocoa and 100% chocolate ingredients better incomes and living standards sus- Confidence chocolate products Scalable: We design programs that are sourced in line with our tainably, and to deliver a sustainable supply with confidence supplier code of conduct of cocoa and chocolate products. This adaptable across the local contexts of differ- aspiration is reinforced by our five 2030 ent sourcing regions. GOAL We will use the power of partnerships Sustainability Goals which are aligned with Technology-driven: We harness the power Transformation, to accelerate and magnify our efforts to Read more the UN Sustainable Development Goals. of technology to rapidly and effectively together achieve a level of sector transformation that cannot be accomplished alone Together with our Theory of Change, these deploy our programs at scale. goals provide a framework through which

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 4 Introduction Language Taking cocoa to the cloud: how digitization benefits all, from farmers to consumers

Digital transformation is driving Farmers receive more change in every business sector, tailored support and the cocoa value chain is no Digitization in cocoa-growing countries is exception. We act across the increasing at a fast pace, providing a signifi- cant opportunity to accelerate change in the More communities entire supply chain, connecting are reached cocoa sector. Smallholder farmers around stakeholders at many different the world are increasingly getting access levels. By leveraging the power to web or mobile applications. Mobile Farmers receive of technology, we aim to information services for farmers can sig- tailored support spearhead the sector’s journey nificantly transform the way we, and others in the sector, can interact with farmers and toward greater transparency farmer organizations. Through mobile appli- Landscapes are better protected and create lasting impact for cations, farm developments are captured all stakeholders, especially in continuously, so we can measure the effects A digital cocoa-growing communities. and tailor our services. They also provide cocoa supply a means for two-way communication with farmers, providing them with customized and actual insights on climate and market fluctuations as well as on protective measures against COVID-19. These solutions are becoming increasingly integrated, pro- Customers get viding a complete interface where farmers direct insights can manage the progress of their business, Sector partnerships combine data costs and potential loans. Voice messaging is effective here, too, as it can reach farmers in a variety of local languages, while mobile banking provides farmers with fair

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 5 Introduction Language

Landscapes are better protected Sector partnerships combine Tackling deforestation and restoring land- more data scapes starts with knowing where to look. Through digitization, companies’ inter- Digital tools, such as GPS-powered tab- ventions like ours can be connected to lets, enable us to make polygon maps of industry-wide initiatives, such as the Cocoa all the farms in our supply chain. We also and Forest Initiative and the Living Income work together with the World Resources Community of Practice. As datasets across Institute‘s Global Forest Watch initiative, the industry become more extensive and which provides satellite imagery and mature, there is a sector-wide opportunity to machine learning techniques to identify share, combine and analyze the datasets in forest change at a very fast pace. Our farm a harmonized manner and derive actionable polygon maps are overlaid with their recent insights collectively. satellite data of forests and protected areas to see if deforestation has potentially taken place in our supply chain. Without this tech- Towards open source data nology, it would be very difficult in many for more progress cases to see where and when deforestation Our journey to a more sustainable, digitally might have happened. enabled cocoa supply chain is ongoing. Every day a wealth of data is captured with Customers, and their consumers, the help of digital technologies. Our data get direct insights platform currently holds 300 indicators, which is an ever-increasing number. As Cocoa takes a long journey. In different intelligence enters the cloud near real-time, forms, it moves from warehouse to ware- we believe data should become increasingly house and across many borders. Digitization open source to benefit all, especially cocoa along the supply chain provides customers, farmers. A huge array of possibilities will be and their consumers, with radically trans- opened up when we combine farm, geospa- and secure electronic payments. As farm- financial access in rural communities, parent and holistic insights into the origin of tial and household data. When we put deep ers digitally capture the progress of their digitization catalyzes empowerment and cocoa. At Cargill, we put digital technologies learning and big data to work in cocoa, the cocoa business, they are better connected entrepreneurship in cocoa-growing com- to work to collect extensive information sector will be able to better tailor support to input providers and local banks, which munities, including women and young about changes on cocoa farms, farmers, services to farmers and measure the effects. contributes to a virtuous cycle for liveli- farmers. Digitized Village Savings and Loan their communities and landscapes. With the We envision making such innovations hood improvement. Associations (VSLAs), for instance, can help of barcoded cocoa bags, we then track deployable, together with partners, in the digitally capture payment data and progress the journey of cocoa electronically from farm coming years. This motivates us to continue data of loans for financial providers, who to factory, for half of the cocoa farmers in and scale data and technologies along our More communities are reached normally make many field visits. As a result, our direct supply chain, so that our custom- supply chain, and we envision it will provide loans become more accessible for groups in Digitization plays an important role for com- ers know exactly where their cocoa comes even more benefits for all in the future. munity-wide progress. Mobile applications remote communities. In 2020, we will initiate from. In this way, customers, and their con- are attractive to young people, catering digital VSLAs in Ghana, together with sumers, are directly connected to the story efficiently to the next generation of cocoa CARE International. of cocoa at the origin level, growing their farmers. As it significantly leverages confidence in sustainable cocoa.

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 6 Introduction Language Impact at a glance 2018-2019

Goal 1: Farmer Livelihoods Goal 2: Community Wellbeing Goal 3: Protect our Planet More then 210,000 farmers benefiting More Child Labor Monitoring and More GPS mapping from one-on-one coaching and/or Remediation Systems (CLMRS) to protect our planet training on Good Agricultural Practices 100% 2017-2018 14,655 2018-2019 58,800 72% 2018 farms farms 81% monitored monitored of all farmers 2019 2017 participating in t the Cargill Cocoa 2018 58% 55% Promise are 2017 2018 mapped

2018 2019

7% of total 29% of total

Goal 4: Consumer Confidence Goal 5: Transformation, Training One-on-one together coaching Towards full farm to factory traceability of our direct cocoa supply chain New partnerships with sector partners 50% 2018 35% new 2019 +3 partnerships 2017

2018 sector +33 partnerships

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 7 Farmer Language Livelihoods Farmer Livelihoods

Our ambition Our entire industry depends on the success of cocoa farmers. Cargill helps smallholder farmers navigate fluctuating socio- economic and environmental conditions by building their capacity, improving their access to resources and increasing their resilience.

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 8 Farmer Language Livelihoods Building the capacity Progress at a glance of all farmers in the cocoa supply chain

2030 Target One million farmers benefiting from the services of the More than 210,000 farmers benefiting More capacity strengthens productivity Cargill Cocoa Promise. Yields in Côte d’Ivoire in kg of cocoa per hectare. Since 2015-2016 from one-on-one coaching and/or Approach productivity of farmers training on Good Agricultural Practices has increased due to the We empower farmers to become true entrepreneurs one-on-one coaching who maximize profitability and manage their farms as 100% that we initiated next businesses. This contributes towards their prosperity. to training on Good 2018 We do this through a holistic approach that goes beyond Agricultural Practices 81% productivity to diversify theirt incomes and strengthen their 2019 (GAP). Productivity 2017 resilience. depends on many t 2018 58% 55% factors, such as weather Key progress 2018 576 2017 567 changes, but compared This year we reached all farmers in our direct supply chain 2018 2019 565 to country averages, the 526 farmers we work with are globally with training on Good Agricultural Practices (GAP). reaching higher yields. We scaled one-on-one coaching for farmers significantly in Côte d’Ivoire and all farmers in West Africa who are 352 baseline average for Cote d’Ivoire coached have digital Farm Development Plans in place. In (KIT study, data Ghana, coaching resulted in a 20 percent increase in GAP from 2016). adoption from 2017-2018 to 2018-2019. In Indonesia, we saw promising results with a yield increase of 17 Training One-on-one 2015 2016 2017 2018 percent between the two crop years for the nearly 25,000

coaching 2016 2017 2018 2019 farmers. Additionally, we successfully initiated diversification programs in Cote d’Ivoire and Brazil. This year we reached all farmers in our direct supply chain globally with training on Good Agricultural Practices (GAP). Learnings and next steps Coaching is showing some promising results this year: In Ghana, there was a 20 percent increase in GAP adoption, Segmenting farm households based on farmer aspirations and the agronomic potential of their farms provides which is a promising result. development plans have been drawn up by farmers in all five valuable insights for more tailored coaching. Next, we aim 121,187 countries of origin, of which 114,888 to continue scaling up our training and coaching, while have been recorded digitally. tailoring it more to the local context with individual, digital and long-term Farm Development Plans. We will also ramp More farm up our efforts to support diverse income opportunities and farmers receive voice messages will launch digital farm applications for farmers in Ghana and improvement via on managing their farms in Indonesia in 2020. access to digital 1,000 Côte d’Ivoire. information sources Read more on our website

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 9 Farmer Language Livelihoods Beyond cocoa: Spotlight taking a holistic look at farmer resilience

Cocoa farmers are exposed to a directly disrupt the livelihoods of farmers household surveys and public sources, • Agroforestry, growing cocoa in conjunc- variety of external variables that and their households. To successfully build such as satellite imagery. It covers indica- tion with other trees, provides farmers their resilience, we consider improving their tors on all livelihood assets of a household, with additional produce to sell and it make it hard to consistently attain incomes, as well as other interconnected ranging from human (GAP adoption, educa- improves climate, soil and water regula- a living income. Strengthening factors. Based on local circumstances, tion), financial (living income gap, financial tion on the farm. In Brazil, we provide farm the socio-economic resilience of we are better able to adapt our services to literacy) and social (farmer organization, inputs and training for rubber production smallholder farmers is crucial for farmers and emphasize farming methods or community committees) to natural (shade for 200 cocoa farmers. other practices that increase their resilience. and forest cover, biodiversity) and physical • Small livestock keeping provides addi- farm households to thrive. With (infrastructure, water and sanitation). The tional income and nutritious food. It can a new tool, we now measure the tool has been successfully tested among be implemented at a group level to benefit A new tool to measure resilience 1221 farmer households in West Africa and resilience of cocoa households, multiple households. In Côte d’Ivoire, will be scaled to Indonesia and Brazil too. looking beyond income alone. In addition to our Farm Economic Model, we initiated a poultry hatching program which allows us to estimate the income of together with five groups of women. farm households, we developed a new tool Resilience beyond income A role for income diversification with Wageningen University and Research Cocoa farmers are particularly suscepti- to also assess non-financial factors that For most cocoa farmers, cocoa accounts What’s more ble to shocks such as price fluctuations, influence farm household resilience. This for about 70 percent of their income. But To improve farmers’ long-term financial weather events and crop disease. This can tool combines 25 indicators from farmer being too dependent on cocoa is risky. planning, we increasingly work with digital To strengthen farmer livelihoods, we look Farm Development Plans as part of our beyond cocoa and also support on- and off- coaching program. To improve household farm diversification for financial, social and Agroforestry resilience, we also support the empower- provides shade environmental benefits: for cocoa trees ment and entrepreneurship of women and • and additional Food crop production generates addi- young farmers. Food crop income. tional income and improves house- production Head to Community Wellbeing for more provides addi- hold food security. In Côte d’Ivoire, we tional income Livestock provides started a maize and tomato program with and food for the additional income and 130 farmers. household. food for the household.

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 10 Community Language Wellbeing Community Wellbeing

Our ambition Cargill is creating stronger, more resilient cocoa farming communities by investing in the wellbeing and progress of farming families. Together with our partners, we are implementing community-driven initiatives to help prevent child labor while enhancing women’s economic opportunities, increasing access Photography by to education, and improving health and nutrition. Minzayar Oo/Panos/Save the Children

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 11 Community Language Wellbeing Strengthening cocoa Progress at a glance growing communities everywhere we operate

2030 Target Empowering 2018-2019 More communities benefiting One million community members benefiting from the more women from tailored programs services of the Cargill Cocoa Promise. with training 31,992 Of all communities reached with the Cargill Cocoa Promise, more are Approach 15% of total supported with programs. These are tailored to community needs, covering topics such as child protection, education, healthcare, nutrition and To reach specific community needs with the Cargill Cocoa women’s empowerment. Promise, we work with various partners to implement 2017-2018 concrete solutions related to healthcare and nutrition, education, addressing child labor, and improving access to economic opportunities for women and young farmers. 19,548 Key progress 9% of total In 2018-2019, we significantly scaled the number of communities reached with programs. We supported more VSLAs, together with CARE, and reached more farmers 2,491 219 Community with Child Labor Monitoring and Remediation Systems Community programs (CLMRS). After Côte d’Ivoire, we are now implementing action plans these systems in Ghana and Cameroon. Learnings and next steps We will expand community programs in Cameroon and More Child Labour Monitoring and More Village Saving and Loan Associations will provide 500 children in cocoa growing communities with scholarships. In Ghana we are initiating digital VSLAs, Remediation Systems (CLMRS) (VSLAs) supported together with CARE together with CARE, and are planning the construction of These systems are now implemented in Côte d’Ivoire, Ghana and Cameroon. 121 new VSLAs schools. We are also initiating a program with Save the 2018-2019 were initiated in Children to empower 500 young people in Côte d’Ivoire. Côte d’Ivoire in Next, we will implement a tailored approach to CLMRS in 2018-2019. Indonesia together with Save the Children and conduct 2017-2018 14,655 2018-2019 58,800 VSLAs In 2020, the first 150 a needs assessment on child labor in Brazil. We will also farms farms digital VSLAs will monitored monitored 2017-2018 conduct human rights due diligence assessments within our start in Ghana. indirect supply chain. 29 VSLAs Read more on our website

7% of total 29% of total

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 12 Community Language Wellbeing A localized approach Spotlight to tackle child labor in Indonesia

One child performing work that systematic process uses local coaches work can range from light work, such as is dangerous or that might harm to visit farms year-round to monitor child collecting pods, to less safe tasks, such as labor. While scaling this approach in Côte carrying heavy loads. Child labor can also their health or education is one d’Ivoire, Ghana and Cameroon, we initiated become more common during peak periods too many. As cocoa farming the development of a similar approach like harvesting. countries and communities vary, in Indonesia. there is no one-size-fits-all Bringing a tailored initiative to Photography by solution to prevent child labor. We Assessing child labor in Indonesia Indonesian communities Minzayar Oo/Panos/Save the Children are now tailoring our approach to In 2019, we conducted a risk assessment Only by working directly with cocoa- the Indonesian context. to understand child labor on Indonesian farming communities and local partners Sulawesi. We aim to reach 5,000 households cocoa farms, in collaboration with human can we address child labor sustainably. For in the pilot, which then will be scaled to Investing in farming communities rights consultancy Embode. This assess- Indonesia, we are partnering with Save the additional areas. ment covered our indirect and direct supply Children; together, we will adapt our child to invest in the future chain in Indonesia. It showed that children labor training to the Indonesian context Most of the world’s cocoa is grown on small in Indonesia often go to school but could be and raise awareness among Cargill staff What’s more family farms. As households struggle, they working on the family farm after school, on and partners. We will start with a localized In 2020, we will conduct a child labor needs sometimes feel they have no other option weekends or during school holidays. The CLMRS to farmer communities in South assessment in Brazil. We take a holistic than to use child laborers on their farm. approach to preventing child labor, looking As tackling and eliminating child labor is at other household and community factors. a key priority across the cocoa sector, “Our joint ambition for this transformational partnership is to generate breakthrough Strengthening the resilience of cocoa- we are working closely with government, solutions for children and families in Indonesia. Together, we will enable communities growing families – for example, through civil society and other partners. We take a to monitor the welfare and safety of children as well as to take preventive and respon- diversification of household income – can three-fold approach: prevent, monitor and play an important role in decreasing child remediate. This is integrated in our Child sive measures against any issues that can affect children’s growth and development.” labor risks. Labor Monitoring and Remediation Systems (CLMRS). Developed in conjunction with Selina Patta Sumbung the International Cocoa Initiative (ICI), this CEO Save the Children Indonesia Head to Farmer Livelihoods for more

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 13 Protect Language our Planet Protect our Planet

Our ambition Cargill is committed to transform its supply chain to be deforestation free. We help cocoa growers adopt sustainable farming practices and increase on-farm tree cover. This is how we build sustainable landscapes that balance cocoa production with the conservation of forests, and how we contribute to easing the impact of climate change on cocoa farmers’ livelihoods.

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 14 Protect Language our Planet Scaling our efforts to end Progress at a glance deforestation and restore forest areas across sourcing landscapes

More GPS mapping 2030 Target Zero deforestation in our cocoa supply chain. to protect our planet Approach of all farmers participating in the Cargill Cocoa Protect Our Planet is our strategic action plan to eliminate 72% Promise are mapped. deforestation from the cocoa supply chain. It outlines concrete actions to achieve 100 percent cocoa bean traceability, to expand programs to grow more cocoa on less land, and to support farmers to effectively include agroforestry and conservation practices on their farms.

Read more on our website

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 18 Consumer Language Confidence Connecting data Spotlight to measure and report on supply chain sustainability

Long-term progress on sustain- with partners, ranging from GPS mapping to This gives us insights for internal decision Sharing insights with ability is dependent on maximum digital farm management. Each tool plays a making and for reporting to customers. We our customers role in monitoring and accountability. also analyze interdependent sustainability transparency. With the help of challenges, such as child labor incidence in Our customers, and their consumers, want innovative technologies at every relation to household income data. to know that the products they purchase are Combining datasets for impact level in the supply chain, we pro- produced sustainably. Therefore, we con- This data platform brings the following tinuously share insights and data in line with vide timely insights that bring the Sustainability issues in the cocoa supply insights together: chain are interconnected. To integrate their sustainability ambitions. To showcase • full story of our sustainable cocoa supply chain information and continuously Whether a farmer has a Farm sustainability data more effectively, we are to life for customers and partners. monitor our impact, we created the Cargill Development Plan and is adopting Good introducing our customer portal. This portal Data Platform, which connects digital infor- Agricultural Practices; provides the option for customers to easily access sustainability data in an engaging A digitized cocoa supply chain mation of farmers, surrounding landscapes • How farm productivity progresses over and programs. The platform links around and interactive way. We worked closely with Digitization of the cocoa supply chain is time; 300 indicators on cocoa farmers, communi- select customers to develop customized opening up new horizons for knowledge • ties and landscapes in a central repository. How premiums are extended view of their projects and give them clearer and exchange of information, creating an This enables us to monitor sustainability towards farmers; lines of sight into the cooperatives and ecosystem where decisions are shaped by communities they are supporting. challenges in supply chains holistically and • data-driven insights. At Cargill we integrate Whether a farm is covered by a Child combine information on sustainability issues a wide range of digital solutions together Labor Monitoring and Remediation and connect these to specific cocoa farms. System; What’s more • Where a farm is located in relation to Digitization is crucial to connect insights protected forests and areas of tree- in our supply chain. Our data platform is cover loss. designed to scale, using standardized data whilst also allowing the integration of capa- bilities on new sustainability issues that Farm arise. Data from the increasing number of development Farm Farm map and digital tools across our programs will feed deforestation risk productivity Payments Child labor effectively into the platform. to farmers monitoring in place

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 19 Transformation, Language together

Transformation,

Our ambition The journey toward sector-wide sustainability is far together greater than the actions or interests of any one company. We all have a role to play. Cargill works closely with farmer organizations as well as competitors, customers, NGOs and smallholders, connecting our individual strengths to contribute to achieving a goal that is in all of our interests: a fair and secure cocoa supply chain. Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 20 Transformation, Language together Using the power of Progress at a glance partnerships to amplify our impact

PUR Projet Koltiva IDH, The Sustainable World Cocoa 2030 Target “As partners, Cargill and PUR Projet “Koltiva and Cargill both have a strong To use the power of partnerships to achieve our targets for Trade Initiative Foundation our other goals and to accelerate sector transformation in a share the mission to put communi- commitment to sustainability, without “We need companies like Cargill “Cargill shows there is power in way that we cannot achieve by ourselves. ties at the heart of the regeneration cutting corners. This mentality under- that are committed to taking action partnerships with their extensive Approach and preservation of landscapes. lines the strategies we design and together, pre-competitively, to end network and collaborative programs Throughout our collaboration, each implement together in Indonesia. I am deforestation and forest degradation in cocoa-growing countries. The Farmers and farmer organizations are our key partners to ensure a sustainable supply of cocoa well into the project is unique, because the com- proud of the strong relationships we in the cocoa supply chain. Cargill longterm partnerships that Cargill future. Our success is linked to theirs. In order to create munities with whom we work are all have built with farmers in 2018-2019 takes serious actions as a signatory builds with farmers are essential to a more sustainable cocoa supply chain globally, we work different, by their origins, their tradi- through personalized coaching. This of CFI and it transparently monitors achieve a thriving and sustainable with a multitude of stakeholders across the industry, tions, the ecosystem in which they has improved GAP adoption by farm- and reports through their progress cocoa sector, where farmers prosper, using individual strengths and abilities for lasting and transformational change. live. We never try to enforce, always ers and is leading to increased yields, reports.” communities are empowered, and the listen. This is why I believe our part- lower GHG emissions and the overall planet is healthy.” Key progress nership is powerful.” improvement of farmer livelihoods.” Joost Oorthuizen We achieved more and stronger partnerships with farmers, CEO of IDH, Rick Scobey farmer organizations and communities to enable them the Sustainable Delphine Dekeister Manfred Borer President of the World to drive future and local progress. We launched new Trade Initiative Country Manager for CEO of Koltiva Cocoa Foundation partnerships and expanded existing ones, such as the PUR Projet long-term collaboration with the International Finance Corporation (IFC) and Technoserve, which is evolving for more impact. New partnerships Learnings and next steps with sector partners More partnerships We realize we are more effective in reaching our goals due to close reciprocal relationships with regional stakeholders. with farmer new As we continue to lead our work on digital transparency and organizations 2018-2019 +3 partnerships traceability in the supply chain, these insights and learnings are also valuable for our sector partnerships. 2017-2018 sector 2,559 partnerships Read more on our website 128 farmer organizations in +33 Côte d’Ivoire, 318 farmer In total we have contractual partnerships to design 1,707 organizations in Cameroon, 227 or deliver programs with 11 NGOs, 5 producing gov- communities in Ghana, 1,878 ernments, 10 multi stakeholder initiatives, 5 social farmer groups in Indonesia, enterprises, 2 technology providers, 8 suppliers in Brazil. 4 financial institutions and 3 knowledge institutions.

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 21 Transformation, Language together Coop Academy 2.0: Spotlight strengthening more cooperatives with management tools

Working with farmer organizations Next phase of the industry’s first management and governance. Learnings approach to entrepreneurship training has proven to be the best path to business program from Coop Academy 1.0 include providing and coaching. The aim is to reach 3,000 trainings in the field and including women and 250 women leaders. creating greater opportunities We initiated Coop Academy in 2013, follow-up activities. 4. Digital Financial Services (DFS) and together with IFC and Technoserve, to for individual farmers, their 2. Cooperative Performance Financial Inclusion. empower cooperatives and other farmer To digitize cashflows families, and their communities. In Benchmarking. organizations with training in business, To measure the manage- from cooperatives to farmers, we use DFS 2013 Cargill and the International digital finance, sustainability and commer- ment capability of farmer organizations, tools. We provide training on the benefits Finance Corporation (IFC) initiated cial credit systems. Since, farmer cooper- we evaluate their performance using the and how to use them. In 2020, we will add Coop Academy, a joint initiative to atives have progressed significantly. They SCOPE Basic tool. The resulting scores 35,250 farmers to a digital platform. accessed affordable credit with a total of can link cooperatives to buyers and sup- grow the skills of cooperative pliers that may want to do business with €7,500,000 in bank loans since 2016, used What’s more leaders. In 2019, this was to finance 261 trucks so far. them. They also enable us to develop cus- expanded for more impact. tomized training interventions to improve Long-term joint efforts such as the Coop their management skills. Academy are successful because we are Connecting cooperatives to 3. Empowerment of Women. To empower able to continuously improve, together with digital means women to establish income generat- partners. We will continue to build our local partnerships and strengthen the enabling In 2019, we launched the next phase of ing activities, we developed a tailored environment for transformational results. this groundbreaking program, expanding its reach and advancing it based on earlier experiences. New farmer organizations will join the academy and follow-ups will “The digital tools we are using have brought real transparency to how we manage be organized for previous participants. The academy consists of four workstreams: traceability in our cooperation. This has allowed us to become more efficient and to 1. Cooperative Management and provide more assurance to our producers.” Governance. To professionalize coop- Kouame Loukou Ludovic eratives, we build their capacity in Chairman of the Cooperative ECAPA GZ COOP CA in Cote D’Ivoire

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 22 Responsible Language Business Responsible Business

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 23 Responsible Language Business Operating in a safe, responsible and sustainable way

Cargill’s purpose is to nourish ZERO Harm Reducing emissions business, we also take part in the Global the world in a safe, responsible Maritime Forum’s Decarbonization Task The concept of ZERO Harm encompasses Cargill aims to reduce greenhouse gas emis- Force, which aims to transition the global and sustainable way. We aspire all areas of safety up and down our supply sions in its global supply chain by 30 percent shipping industry to carbon-neutral by 2050. to be the most trusted source of chain. It means protecting the safety and per ton of product by 2030. The commitment well-being of our people, the integrity of builds on our goal to reduce absolute emis- Transporting cocoa and chocolate ingre- products and services across our products and the health of our planet. sions by 10 percent by 2025, including direct dients contributes to greenhouse gas the agricultural, food, industrial Fundamentally, ZERO Harm is at the heart of emissions from sources owned or controlled emissions and local air pollution. In our and financial markets we serve. our purpose. by Cargill and indirect emissions generated ambition to reduce Scope 3 emissions by 30 by energy Cargill has purchased. These percent per ton of product sold by 2030, our Our business has a global reach, Focus on LIFE (Life-altering Injury and goals align with the Paris Agreement and are near-term focus is on developing plans for Fatality Elimination) is the foundational and we aim to carry out all these supported by the Science Based Targets transportation. We are working with Cargill safety program, which was introduced in operations in a safe, responsible initiative. Through our Ocean Transportation transportation, logistics and other partners 2013. It is aimed at identifying and address- and sustainable way that delivers ing life-threatening dangers hidden in our business value and mitigates our tasks and workplace to ensure every job can impact on the world around us. be done safely and every one of our 160,000 To this end, across Cargill’s employees as well as the contractors that work at our sites go home safe every day. In business operations and supply 2016, we launched the See, Say, Stop – Save chain, our teams are always a LIFE campaign as a reminder to watch out looking to increase efficiency, for each other. Of course our aim is to have maximize safety and minimize our zero fatalities every year. Regrettably, there was one fatality in all of Cargill in 2018-2019. environmental footprint. Our recordable injury-free frequency rate for the year was 1.13, slightly above the target of 1.0.

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 24 Responsible Language Business to optimize logistics with more efficient corporate leadership by 2030. We also work worldwide. The councils provide support devote 1 percent of our profits to commu- equipment and cleaner fuels. We have also with organizations, such as ONE and CARE, for local charitable and civic organizations nity-based projects. We also partner with developed a measurement approach to to offer and advocate for inclusive financing, and programs such as food relief agencies, local and international NGOs to broaden our capture and report the results. market access, land rights and education. school and youth programs, and local envi- impact on core issues of food security, nutri- ronmental projects. tion and sustainability. This includes efforts to help address food security, health and Cargill invests in the communities where Packaging our products Conducting business safety needs and industry challenges due to our employees live and work to promote more sustainably with integrity the spread of COVID-19. sustainable economic development and to We are committed to sustainable forest Cargill is known as a company that conducts improve community resilience; the goal is to management and conservation. This also its business in a legal and ethical manner. applies to our packaging. In 2016, Cargill Our Code of Conduct and the corresponding launched the Cargill Policy on Sustainable Supplier Code of Conduct outline standards Fiber-based Packaging, with the goal to for conducting business around the world. achieve a 100 percent responsibly sourced They are based on the company’s seven fiber-based packaging supply by 2025. Guiding Principles, which are ingrained in Cargill is developing a global sustainable Cargill’s culture and serve as the foundation packaging strategy aligned with this corpo- for the behaviors expected from all employ- rate policy. ees, contractors and suppliers. The Code of Conduct and the Guiding Principles also serve as the foundation of our Commitment Inclusion and diversity on Human Rights. At Cargill, we want every employee to bring With our strong culture of doing the right their whole self to work. That means feeling thing at all times, we take breaches of the welcome, valued and heard, so they can principles or of our Cargill Code of Conduct make their mark. We recognize, appreciate very seriously. We have zero tolerance for and respect the uniqueness of all employ- bribery and other corrupt practices. ees, and value how their talents and experiences can help people around the world thrive every day. As a truly global company, Enriching our workforce needs to reflect the diversity communities of the global communities where we operate. Read more about how we address this Across all our businesses, Cargill is commit- on our website. ted to the communities where we live and work. We invest in, engage with and respect Women are cornerstones of our families, cultures while promoting sustainable and communities and the agriculture industry. responsible economic development to That is why Cargill invests in women and improve living standards and promote sta- girls, through partnerships and within our ble communities. Last year, we contributed own supply chains. Cargill was among the $70 million in total in community programs. first companies to join the Paradigm for Cargill businesses and facilities and our Parity℠ coalition, an organization committed employees also give through more than to achieving gender parity across all levels of 350 employee-led Cargill Cares Councils

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 25 About Language About Cargill Our purpose is to nourish the world in a safe, responsible and sustainable way.

We have Working in 160K 70 employees countries

With more than Delivering for customers in 150 more than years of experience 125 countries

Contributing With a network of $70M 350 annually in Cargill Cares Councils community programs

We aim to be the most trusted partner for food, agriculture, financial and industrial customers.

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 26 About Language

Insights Our business

Every day, we connect farmers with markets, customers with ingredients, Insights Insights

Transform and people and animals with the food they need to thrive. Insights

Transform Transform Insights Insights Move For farmers ForTransform customers We supply feeds, other We provide insights We deliver finished Move Move Transform inputs Transformand expertise Data Market Risk Financial goods to to our partners Insights analytics expertise management solutions Farmers to farmers, and customersMove in buy crops and the foodservice, Farmers Farmers Move livestockMove from retail, consumer Transform Customers them We transform packagedFarmers goods and industrial raw materials into Animal Food Animal Branded Bioindustrials Customerssectors Customers Farmers Farmers nutrition ingredients protein foods Move finished goods Customers

Customers Customers We move productsFarmers Roads Rail Rivers Oceans Customers Farmers Move Transform aroundInsights the world

Customers

How we work Our Guiding Principles Our integrated and reliably through that affect us, our strategic direction, members of the Doing business operating approach world-class capabil- customers and other talent develop- Executive Team ethically is key to our 1. We obey 5. We treat people enables our busi- ities and operations partners. ment and overall represent all of long-term strategy the law. with dignity nesses to provide everywhere we do financial perfor- Cargill’s enterprises, and relationships. and respect. Cargill’s Executive 2. We conduct industry-leading business. Our global mance. Led by as well as major Our seven Guiding Team is responsible our business 6. We protect products and ser- functions equip Chairman and CEO global functions. Principles make up for the company’s with integrity. Cargill’s infor- vices in their spe- our businesses to David MacLennan, They use a diverse the core of our Code mation, assets cific sectors while do this effectively set of experiences of Conduct. We 3. We keep and interests. also drawing on the and efficiently by from both inside and require all employ- accurate and David MacLennan full world of Cargill’s providing process Chairman and outside of the com- ees and contractors honest records. 7. We are com- expertise. We governance and Chief Executive Officer pany to lead and to follow them, and mitted to being 4. We honor our deliver this exper- deep subject matter achieve results. expect our suppliers a responsible business tise locally, quickly expertise on issues to do the same. global citizen. obligations.

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 27 About Language About Cocoa and Chocolate

Cargill provides high-quality cocoa and Our Glossary chocolate more sustainably throughout the CAP: Community Action Plan details the process through which inter- IDH: Sustainable Trade Initiative brings governments, companies ventions will be implemented in the community. and financiers together in action driven coalitions to create solutions for world and brings our customers peace of global sustainability issues at scale. mind, integrity and excitement. With balanced CFI: Cocoa & Forest Initiative is an active commitment of top cocoa-producing countries and leading chocolate and cocoa compa- IFC: International Finance Corporation is the largest global develop- efforts on security of supply, sustainability nies to end deforestation and restore forest areas, through no further ment institution focused on the private sector in developing countries. conversion of any forest land for cocoa production. projects and sensory expertise, we create a KIT: Royal Tropical Institute is an independent center of expertise, wide range of outstanding standardized and CLMRS: Child Labor Monitoring and Remediation Systems are the education, intercultural cooperation and hospitality dedicated to sus- leading methods of detection and remediation of child labor amongst tainable development. custom-made products and services. In addi- children aged 5-17. They were developed by the International Cocoa M&E: Monitoring & Evaluation is used to assess the performance of Initiative (ICI). tion, we provide our customers with extensive projects, institutions and programs. CMS: Cooperative Management System is a digital system that market knowledge. We grow a robust, fair VSLA: Village Savings and Loan Association model provides simple enables traceability of the supply chain and provides a full interface savings and loan facilities in communities that do not have easy access and transparent supply chain, from bean between the farmer and the buyer. It enables farmers to manage loans, to formal financial services, allowing whole communities to save and stalks, collect beans and check fixed versus variable costs. to bar, eager to continuously shape indus- invest in income-generating activities. CNA: Community Needs Assessment identifies primary needs (i.e. try standards. WCF: World Cocoa Foundation is a non-profit international member- related to education, water and sanitation, gender equality). ship organization whose vision is a sustainable and thriving cocoa sector To ensure a more sus- to enable farmers and their FEM: Farm Economic Model predicts the incomes of farmers involved – where farmers prosper, cocoa-growing communities are empowered, tainable supply of quality communities to achieve with the Cargill Cocoa Promise based on various input data, such as human rights are respected, and the environment is conserved. farm size, yield and costs of inputs. cocoa beans, Cargill better incomes and living WRI: World Resources Institute is a global research organization established our own standards. Our team of GAP: Good Agricultural Practices is a certification system for agricul- turning big ideas into action at the nexus of environment, economic sourcing and trading 3,600 passionate cocoa ture, specifying procedures that should be implemented to create food opportunity and human wellbeing. operations at origin in Brazil, and chocolate experts work for consumers or further processing that is safe and wholesome, using sustainable methods. Cameroon, Côte d’Ivoire, across 52 locations and are Ghana and Indonesia. Our part of 160,000 colleagues ICI: International Cocoa Initiative promotes child protection in Cargill Cocoa Promise around the world. cocoa-growing communities, working to ensure a better future for children and their families. underlines our commitment

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 28 About Language About this report

This is the Cargill 2018-2019 sustainability In 2017, we introduced our audited externally for the In May 2019, we conducted external topics to determine progress report. Unless stated otherwise, it five sustainability goals, 2019-2020 reporting cycle. a thorough materiality anal- our most material topics in which serve as the structure This report has been pre- ysis to provide input for different categories. covers the crop year, which runs from October for this report in alignment pared in accordance with the sustainability strategy Should you have any 2018 until the end of September 2019. Our with our Theory of Change. the GRI Standards: Core review process and this questions or comments In 2018, we created a new option. To help you find spe- report. The table below lists sustainability report is published on an annual about this report or our overview of datapoints, cific content in our report, our key stakeholders, how basis. The 2017-2018 report was published on sustainability strategy, mapped to the five sustain- you can find theGRI Content we consulted them and the please contact us at May 29, 2019. ability goals. A selection Index on our website. main topics they raised. We [email protected] of these datapoints will be mapped the internal and

Stakeholder Consultation mechanism Key topics Economic Environ- Social Political and Technology and Employees Online survey, consultation with Farmer livelihoods, deforestation, topics mental topics governance marketplace Cargill Young Professional Network child labor, traceability topics topics Customers Ongoing meetings, analysis of their Farmer livelihoods, deforestation, materiality matrices, structural child labor, traceability, Farmer Deforestation Community Consumer Traceability feedback cycles financial transparency livelihoods wellbeing confidence

NGOs Analysis and active monitoring of Farmer livelihoods, deforestation, Resilience Child labor Transparency campaigns and rating reports, child labor, living Income dialogue on our materiality analysis with selected NGOs

Knowledge institutes Partnerships, data sharing Farmer livelihoods Table 1 on the left: Consultation of stakeholders. and modelling Table 2 above: Material topics per category.

Policy makers Engagement through government Responsible business conduct, relations and trade associations due diligence

Suppliers Research and engagement of trade Deforestation, supplier associations, studies and surveys due diligence

Cargill | Cocoa and Chocolate | 2018-2019 Sustainability Progress Report 29 Language