SUSTAINABLE FARMING IN PRACTICE It all starts with better farming. Farmers apply the UTZ standard, which brings real benefits. Productivity goes up, farmers and workers have better opportunities, and the environment is protected. Being part of the UTZ program also means access to training, and better market connections.

When farmers are awarded the UTZ certificate this provides evidence of the farm’s credentials, showing buyers that they can trust the origins of their products.

COLLABORATION AND PARTNERSHIPS WHAT’S THE IMPACT? Page 4

The UTZ name appeared on more than 13,500 products in 136 countries

A STRONG MARKET FOR SUSTAINABILITY The market for sustainability is stronger than ever. Companies consider UTZ their mark of integrity: it shows consumers that their favorite brand is taking responsibility.

More and more companies are choosing to put sustainability 596 at the heart of their business strategies – and they are working with UTZ to make it happen. Consumers are looking new supply chain for brands that deserve their loyalty and trust, so we work with companies to find engaging ways to tell their sustainability actors registered stories. with UTZ COMPANIES TELL THEIR SUSTAINABILITY STORIES A PROGRAM FOR THE FUTURE Page 9

In 2015 our members sourced enough , cocoa and to make more than: 28.6 billion cups of coffee 14.4 billion bars of of 100g 2.9 billion cups of tea 9% of the world’s cocoa farmers are now UTZ certified

MAKING SUSTAINABLE FARMING In 2015  THE NORM Since its launch in 2002, the UTZ program has had a massive our program impact. More than a million farmers and workers are part of the program, and the UTZ label is a familiar site on coffee, reached more cocoa and tea packaging all over the world. The UTZ certification program is stronger than ever, and we are now than a million applying our expertise to new products.

farmers & workers Our goal is to make sustainable farming the norm, so we are building on the strong foundations of certification with a new program to influence the sector agenda towards sustainability.

COFFEE, COCOA, TEA AND BEYOND: NEW PRODUCTS CERTIFICATION AND BEYOND: THE SECTOR PARTNERSHIP PROGRAM Page 10 10% of global coffee production is now UTZ certified UTZ certified coffee, cocoa & tea are produced in 36 countries PARTNERSHIPS ARE THE KEY TO CHANGE 2015 was a year of reflection on where we have been, and where we are going next.

For several years we have focused on growing and strengthening our certification program. In 2015 for the first time there are more than a million farmers and workers in the UTZ program. In the last five years sales of UTZ certified coffee and tea have grown by more than 90%; for cocoa, it’s more than 1,200%. I’m very happy to say that our certification program is stronger than ever, and ready for the coming years.

Yet this has also been a period of change. Companies and governments are increasingly active in the sustainability agenda, with growth in company programs, sector platforms and national standards. Companies are finding new ways to make their contribution to sustainability, and they are looking for trustworthy organizations to work with.

What is clear now is that certification alone is not enough. When it comes to issues like climate change, child labor or gender inequality, we need to see a broad coalition of actors getting involved. Now more than ever, partnership is the key to real change.

With this in mind we have developed a strategy for 2016-2019 that focuses on innovative partnerships with companies, farmers, NGOs, governments and others. In line with this approach, we are proud to have formed a strategic partnership with the Dutch Ministry of Foreign Affairs. Funding over five years will enable us to tackle issues that require a sector wide approach, with a focus on building the capacity of civil society.

Our mission remains the same as ever: we want to create a world where sustainability is the norm. Our new strategy is a clear roadmap, and I hope you will join us on the next stage of the journey.

Han de Groot, Executive Director

UTZ STRATEGIC GOALS 2016-2019

1. Deliver impact on farm level and assurance to farmers and supply chain Continue to create and demonstrate actors, such as through improved IT systems at greater impact for farmers, their families farm group level, innovative training concepts and the environment, through training, and improving quality and efficiency in tools & services, and monitoring & assurance mechanisms. evaluation. 5. Deliver customized programs to market leaders 2. Maintain & create demand for Strategic partnerships with market leaders to sustainable products conceptualize and implement programs for Support markets to build their sustainable better farming. Over time, these may inform sourcing a¬nd increase the demand for the further innovation of certification as well as UTZ certified products. lead to new sector-level services. 3. Create supply of UTZ certified products 6. Influence sectors towards sustainability Work to ensure the production and Work with civil society, governments and supply of UTZ certified raw materials in business to tackle issues that require a sector line with market demand by enabling wide approach to create lasting change. Use farmers to adapt to external factors such UTZ’s position as thought leader to advocate as climate change. continuous improvements in sustainability. 4. Innovate key ingredients of the UTZ program Create innovative approaches to provide greater insights, information, SUSTAINABLE FARMING IN PRACTICE COLLABORATION AND PARTNERSHIPS It all starts with better farming. A lot of our work is focused on expanding our reach and enabling more farmers to access the benefits of certification, and to make that happen it is vital that we collaborate with others.

COMBINED AUDITS: BRINGING DOWN THE COST OF CERTIFICATION In 2015 we made important agreements with RA-Cert and FLOCERT (the and Fairtrade certification bodies), which will make it possible for farmers to have combined audits in some countries. Being checked against two sustainability standards at the same time really brings the costs down for farmers. It also makes it easier for them to be certified under more than one label, which gives them more options for where to sell their products.

SPOTLIGHT ON CÔTE D’IVOIRE: Collaboration with the International Cocoa Initiative The cocoa sector is a vital part of the economy of Côte D’Ivoire, which produces more than a third of the world’s supply of the crop, and we already work with more than 170,000 cocoa farmers in the country. Yet child labor continues to be a problem.

Since 2013 we have been working with the International Cocoa Initiative (ICI) to build knowledge and skills to tackle child labor at the community level. UTZ certified farmer groups are required to proactively identify and address child labor on their farms and in their households. UTZ, with the advice of ICI, has developed a guidance document for farmer groups to set up such systems effectively and will provide further guidance through training.

SPOTLIGHT ON NICARAGUA: Training and technical assistance More than 3,000 coffee and cocoa farmers in Nicaragua have benefited from extra training and technical assistance in areas such as good agricultural practices, business management, technological innovation, finance and accessing markets thanks to the PROMESSA CAFCA project. This included developing a demonstration coffee plot that complies with the UTZ code, to be used for training and exchanging experiences. This model will be replicated in 2016 with coffee and cocoa farmers in different locations across the country.

The project was founded by the Dutch Ministry of Foreign Affairs and carried out by UTZ in partnership with the Foundation for Technological Development of and Forestry of Nicaragua (FUNICA), Zamorano University, international development organization SNV, and the private coffee exporter EXPASA.

SPOTLIGHT ON VIETNAM: Adapting to climate change Coffee producers in Vietnam are already experiencing severe effects of climate change. “The weather used to be foreseeable, but it is not anymore.” Says Pham Van Hoan. “For example, in the rainy season, there used to be sun in the morning and it rained in the afternoon. Now it is not so regular. This is a big problem for the growth of coffee plants and a big problem for coffee production in the whole area.”

To increase their resilience to these challenges, UTZ has been running the Coffee Climate Care project in partnership with the Douwe Egberts Foundation and the German Development Bank (DEG). This project helps producers carry out assessments to determine their vulnerability to climate change, and then pilot adaptation practices. Producers are then able to train others in these methods. Photo: Andre Berlink Page 4 - UTZ In 2015 our program  reached more than a million  farmers & workers

UTZ certified coffee, cocoa & tea are produced in 36 countries

2015 IN ACHIEVEMENTS - Page 5 Page 6 - UTZ WHAT’S THE IMPACT? Being part of the UTZ program and the adoption of good agricultural practices generally lead to higher yields, bigger incomes and better living conditions for farmers and workers, as well as protection of the environment. These are the findings of recent studies into the impact of UTZ.

Gaining insight into the impact of the UTZ program is crucial for continuous improvement of our standards. That is why we invest in monitoring and evaluation. We collect data directly from producers at the time of their registration, from auditors during the certification process and through our traceability system. We also commission independent research organizations to carry out impact studies, evaluating the changes at farmer level.

IMPACT REPORT HIGHLIGHTS For in depth analysis, visit the impact page on our website. COFFEE FARMERS IN BRAZIL A study of coffee farmers in Brazil found that more than 90% were satisfied with UTZ certification and believed it was worth joining the program. 49% have seen significant environmental improvement due to UTZ certification practices. Proper implementation of local labor law results in economic benefits for workers, with proper legal wages as well as health and social security benefits offered. BSD Consulting and Ibi Êté Consultoria, ““Effects of UTZ certification according to coffee farmers in Brazil”, 2015. COCOA FARMERS IN CÔTE D’IVOIRE 92% of farmers said they experienced positive changes from certification, including better living conditions, better farm management, higher yields and bigger incomes. 83% said they had trained workers and relatives in these improved agricultural practices. LEI Wageningen UR, “Impact of UTZ Certification of cocoa in Côte d’Ivoire: Assessment framework and baseline”, 2014. COCOA FARMERS IN INDONESIA Certified farmers increased their productivity and the quality of their cocoa compared to non-certified farmers, and they said this was thanks to training and follow up support. Certified farmers received more than twice as much training (7.3 days) as non-certified farmers (3.3 days) over the two years of the study. AidEnvironment, “Evaluation of UTZ in the Indonesian cocoa sector”, 2015. TEA FARMERS IN INDIA Certified tea farmers in the Tamil Nadu region of India reported the benefits of certification, stressing both the social and environmental responsibility and the advantages of better management practices and better market position. Workers on certified farms were found to have better living conditions and better access to protective equipment. Walter J.V. Vermeulen and Just D. Dengerink, “Impacts of private sustainability certification on practices of tea production”, forthcoming.

Photo: Kadir van Lohuizen 2015 IN ACHIEVEMENTS - Page 7 In 2015, 596 new supply chain actors registered with UTZ

The UTZ name appeared on more than 13,500 products in 136 countries

In 2015 our members sourced enough coffee, cocoa and tea to make more than: 28.6 billion cups of coffee 14.4 billion bars of milk chocolate of 100g 2.9 billion cups of tea

Page 8 - UTZ A STRONG MARKET FOR SUSTAINABILITY COMPANIES TELL THEIR SUSTAINABILITY STORIES The market for sustainability is stronger than ever. Companies consider UTZ their mark of integrity: it shows consumers that their favorite brand is taking responsibility. Today’s consumers are more informed than ever about sustainability issues, and they are looking for brands that deserve their loyalty and trust. We work with companies to find engaging ways to tell their sustainability stories. Here are a few examples of how it was done in 2015. Nestlé USA consumers. Advertising in trade and consumer Easter tasted extra good at Nestlé USA this year, media and on television was accompanied by with the company purchasing enough UTZ cocoa direct outreach to 30,000 newsletter subscribers, for its entire Easter chocolate range – a first for a and a Facebook game and tea quiz offering major US manufacturer. great prizes. The are on sale in Germany, Nestlé got the word out about its commitment , Belgium, Luxembourg, Switzerland, to sustainability with a campaign combining Mauritius, Canada, Latvia, , Korea and press, social media and internal communications. Taiwan. A press launch event and outreach to some of America’s leading food bloggers resulted in Ikea, global coverage in many major media outlets. IKEA gave its sustainability communication a fresh new look in 2015. New packaging, point of sale Messmer, Germany and wall displays gave a clear message about German tea brand Messmer’s range of 50 herbal IKEA’s commitment to sourcing UTZ certified and fruit teas were the first to carry the UTZ label coffee, cocoa and tea. under the new UTZ/UEBT herbal tea program. The company ran a multi-channel campaign to get the news out to business customers and

A PROGRAM FOR THE FUTURE More and more companies are choosing to put sustainability at the heart of their business strategies – and they are working with UTZ to make it happen.

Sustainability around the world we launched the Better Business Hub, a digital Sustainability is a very well established concept content platform that brings together a wealth of in many parts of the world, particularly Western expertise in sustainability marketing, sourcing and and Northern Europe. In these markets, many strengthening your reputation. companies have long standing sustainability commitments that have seen them scale up their Employee engagement sourcing of UTZ certified coffee, cocoa and tea. They say a company is only as good as its people. In 2015, several long-standing members of our What could be more important, then, than cocoa program were active participants in the ensuring employees understand the important development of our new program for sustainable sustainability choices made by the company? hazelnuts. In addition, we’ve seen membership Our employee engagement sessions make sure grow with new companies coming on board. people not only understand the company’s sustainability program, but are positively inspired Yet this deep concern for sustainability is no to go out and talk about it. longer confined to certain markets. We are also seeing an increase in awareness in Southern “Now I’ve got some great examples Europe – for example, – and all around the and ideas that make it even easier to globe. There has been strong growth in sales and communicate about sustainable farming commitments in North America and Asia Pacific. and why it matters to Kahls.” We now have many partners in markets such as Peter Goodman, coffee purchaser at the USA, Canada, Australia, China and Japan, Kahls with particular growth in retail and chocolate brands. 30 employees from Kahls Kaffe AB, an importer and producer of coffee and tea, together with A hub for sustainability expertise sister company, Kahls The & Kaffehandel in The UTZ label gives brands and companies space Sweden, were among the first UTZ members to to tell their own sustainability stories, and we work follow the session. hard to support them in their marketing. In 2015

2015 IN ACHIEVEMENTS - Page 9 MAKING SUSTAINABLE FARMING THE NORM COFFEE, COCOA, TEA AND BEYOND: NEW PRODUCTS Our goal is to make sustainable farming the norm, so we are building on the strong foundations of our certification program. In 2015 we continued innovating our program by applying our experience to new products. The first herbal tea carrying the UTZ logo hit the shelves, and important progress was made in hazelnuts and rice. Hazelnuts UTZ led on the development of the standard along with 2015 saw a major milestone in our new hazelnut program: AidEnvironment and the International Rice Research the first hazelnuts were traced from the field to the Institute. The standard covers productivity, food safety, market. worker health, labor rights and biodiversity, and it draws on global experience in other sustainable commodity Our hazelnut program was launched in 2014, with the initiatives such as sugarcane, cotton, coffee and palm goal of bringing greater sustainability to a sector where oil. child labor is a problem. The focus is on , which produces 75% of the world’s hazelnuts. The next step is to pilot the standard and develop a supply chain program in cooperation with the major Working closely with our founding members – Migros, players in the rice market. Jumbo Supermarkets, Natra and Rewe – we developed a standard for sustainable hazelnuts that has now been Herbal tea implemented in the field for two years. We have started The UTZ tea program has been running for several years, to explore alignment of the UTZ hazelnut program with and in 2015 the first herbal tea with the UTZ label hit the Ferrero, who have their own Ferrero Farming Values shelves. program for hazalnuts. To make this happen we formed a unique partnership Today there are more than 2,100 farmers in the program. with the Union for Ethical Biotrade (UEBT). UEBT is a sustainability standard that has been working with herbal Rice tea for many years and has direct experience with these More than a billion people depend on rice production specialty ingredients, as well as an assurance approach for their livelihoods, and it is the staple food for half the for this sector. UTZ contributed its traceability system, the population – more than 3.5 billion people. Supply is not UTZ label, and the link with its existing tea and rooibos expected to keep up with demand, and there are also program. The joint program enables companies to environmental concerns. That’s why UTZ started working use the UTZ Certified logo for their entire range of tea on sustainable rice, as part of the Sustainable Rice products. Platform (SRP).

2015 saw the launch of the world’s first standard for sustainable rice, setting new and more efficient standards for rice cultivation.

CERTIFICATION AND BEYOND: THE SECTOR PARTNERSHIP PROGRAM We are building on the strong foundations of certification with a new program to influence the sector agenda towards sustainability. Through the Sector Partnership Program we are building the capacity of farmers (especially smallholders and female farmers) and civil society, enabling them to work with governments and companies.”

To make this happen we will work jointly with civil society, The program plans to engage and work with: governments and companies to strengthen sector wide • 10 Countries: Guatemala, Honduras, Indonesia, services and improve policy and regulation, as well as India, Ethiopia, Côte d’Ivoire, Ghana, Kenya, Malawi, supporting the development of a thriving civil society Uganda that can drive change. • 3 commodities: Tea, Coffee, Cocoa • 6 key themes: Sustainable Productivity, Inclusion of We want to ensure that: smallholder interests & Farmer Group strengthening, • Smallholder farmers have better access to Gender equality, Climate Change adaptation and knowledge, tools and services to increase water management, Child Labor, Living Wage productivity; • Inclusion of marginalized groups: women, • Farmer groups are strengthened and inclusive with smallholders and estate workers regards to smallholders and women; • Farmers adopt climate change adaptation practices supported by companies and improved government policies; • Child labor is eliminated; • There is progress towards a living wage for workers, and the gap between women and men’s wages is reduced; • Women have equal opportunities and do not face discrimination.

Page 10 - UTZ 9% of the world’s cocoa farmers are now UTZ certified

10% of global coffee production is now  UTZ certified

Photo: Nabil Zorkot 2015 IN ACHIEVEMENTS - Page 11

UTZ 2015 GOVERNANCE & FINANCIAL INFORMATION

GOVERNANCE UTZ has an executive team that is responsible for day-to-day affairs, and a multi-stakeholder governance structure.

UTZ is governed by a multi-stakeholder Supervisory Board, with members drawn from: producers, the supply chain (including brands, processors, trade, retailers), civil society/non-governmental organizations and representative trade unions. The Supervisory Board meets a minimum of two times a year and oversees the Executive Team. For a number of important matters, the Supervisory Board’s approval is required before the Executive Team can take decisions. In 2015, the Supervisory Board met 4 times. A major focus area was the development of the multi-year strategy for UTZ from 2016 onwards.

The multi-stakeholder Standards Committee consists of representatives of producers and supply chain actors, NGOs and technical experts on specific sustainability issues (e.g. employees’ rights, good agricultural practices, and biodiversity), experts in the field of certification and sustainability and the UTZ Standards Director (non-voting member). The Committee’s task is to adopt, on the basis of information and data provided by stakeholders, new Codes of Conduct as well as revise existing Codes. In 2015, the Standards Committee met 3 times. The committee reviewed feedback from the pilot period of the new Code of Conduct, and approved several certification documents: the amended version of the Code, the new List of Banned Pesticides and Pesticides Watch List, and the final Hazelnut Module.

Lastly, the Product Advisory Committees (PACs) support and advise both the Supervisory Board and UTZ’s staff on the development, implementation and revision of product specific programs. Members of the PACs possess knowledge of production, trade, manufacturing or retail.

“UTZ’s mission is to make sustainable farming the norm, and that’s no easy task. It requires strong relationships with many different stakeholders, particularly farmers, companies and civil society. That’s why it is so important to have a multi-stakeholder governance model. It means that UTZ benefits from the expertise of many different players in the sector, as well as representing their interests.” Ton van der Laan, Chair of the UTZ Supervisory Board

EXECUTIVE TEAM Han de Groot - Executive Director Daan de Vries - Markets Director Britta Wyss Bisang - Standards Director Juliette Caulkins – Emerging Markets Director (until December 2015)

For all UTZ staff please see: https://www.utz.org/who-we-are/who-is-who/

UTZ FINANCIAL STATEMENTS

GENERAL NOTES ON THE ACCOUNTS Growth in existing and new activities led to an increased number of employees. At the end of the year 2015 UTZ has General employed a total of 97 FTEs, which is a growth of 5 FTEs Unless otherwise indicated, assets and liabilities are stated at compared to last year. nominal value. A trainee program offered 3 young professionals possibilities to Accounts receivable increase their knowledge and research experience at the Accounts receivable are stated at nominal value including beginning of their working career. In the total personnel costs an allowance for bad debts. The bad debt allowance is of € 5,994K a total of € 269K was remuneration of the statutory calculated as follows: directors. • Nominal value of invoices outstanding between 30 and 60 days x 25%. UTZ will use its knowledge and experience to roll out new • Nominal value of invoices outstanding between 60 and programs and thereby increase its contribution to agricultural 90 days x 50%. sustainability. The objective is to be able to finance all current • Nominal value of invoices outstanding longer than 90 days operations through program fee income. New programs in x 100%. their initial phase will mainly be financed through contributions • +10% of the sum of the above to cover additional debtor and sponsoring. management expenses. UTZ acknowledges financial support from various donors. Tangible fixed assets Their financial support has been crucial in strengthening our Tangible fixed assets are stated at their historical cost less producer programs and market linkage. depreciation. Depreciation is provided in equal annual installments over the estimated useful lives of the assets. AUDITOR’S REPORT

Intangible fixed assets Intangible fixed assets are stated at their historical cost less amortization. Amortization is provided in equal annual installments over the estimated useful lives of the assets.

Result of the year The result represents the difference between income and costs based on accrual accounting during the year. The results on transactions are recognized in the year they are realized; losses are taken as soon as they are foreseeable.

Income Income represents funds received from donors, contributions from targeted industries and administration fees billed to users of the UTZ Traceability system calculated on the basis of volume.

Corporate Income Tax The activities of UTZ are exempt from corporate income tax.

COMMENTS ON THE 2015 FINANCIAL STATEMENTS The year 2015 ended with a positive result of € 2.622K compared to a positive result of €263K for 2014. This result is transferred into the general and continuity reserves. Income increased by 26% to € 13.942K due to increased income from fees for coffee, cocoa and palm oil. Operating expenses increased by 3%.

Due to the fact that a non-profit organization as UTZ is more vulnerable to volatile markets and changes in donor policies, a continuity reserve exists to secure continuity of its activities. When surplus funds are available, additions to this reserve are be made to keep up with the growth.

UTZ 2015 GOVERNANCE & FINANCIAL INFORMATION UTZ MAIN SUBSIDIES

The main subsidies received and accounted for by UTZ for the year 2015 can be listed as follows: Income & expenses € x 1,000 Postcode loterij (NPL) 500 Ford Foundation 242 Hazelnuts (industry support) 106 Deutsche Entwicklung Geselschaft (DEG) 73 Cocoa (industry support) 96 UNEP & Sustainable Rice Platform 49 REVENUE AND EXPENDITURES Other (diverse small donor fundings) 82 Statement of revenue and expenditures for the year ending 31-Dec-2015 Total Subsidies 1,148 (€ x 1,000) 2015 2014 2013 Fees 11,975 9,158 7,644 BALANCE Subsidies 1,148 1,193 1,334 Balance as per December 2015 Contributions 783 637 447 (€ x 1,000) 31-Dec-15 31-Dec-14 Other 36 48 55 Intangible fixed assets 613 818 Total Income 13,942 11,036 9,480 Tangible fixed assets 304 317 Finacial fixed assets 1 0 Personnel cost -5,994 -5,740 -4,362 Total fixed asssets 918 1,135 Brand & advertising -105 -96 -147 Events & trainings -607 -687 -370 Accounts receivable 2.809 2.293 Materials & translation -163 -148 -139 Other receivables and prepaid expenses 422 323 Travel & meals -902 -805 -785 Cash at banks 3.892 1,778 General & office -612 -635 -408 Total current assets 7.123 4,394 ICT services -682 -555 -645 Consultancy & research -870 -1,154 -1,108 Total assets 8.041 5,529 Repres. & projects in origin -896 -647 -463 Total Operating expenses -10,831 -10,467 -8,427 Paid in capital 3 3 General reserve 2,604 983 EBITDA 3,111 569 1,053 Continuity reserve 2,800 1,800 Total capital account 5,407 2,786 Depreciation -540 -396 -164 EBIT 2,571 173 889 Accounts payable 1,896 1,900 Taxes and premiums 216 148 Exchange result 38 83 -42 Subsidies received 132 314 Interest 14 13 27 Other liabilities 390 381 Other -1 -6 9 Total current liabilities 2,634 2,743 Total financial result 51 90 -6

Total disposable reserves and liabilities 8,041 5,529 Result 2,622 263 883 SUPERVISORY BOARD Paul Andela Stefanie Miltenburg SB member since 08/12/2011. Union Representative. Former SB member since 28/03/2011. Supply Chain Representative. International Secretary FNV Bondgenoten (largest Dutch trade Director of International Corporate Social Responsibility at union), former President of ECF-IUF (now EFFAT), former Jacobs Douwe Egberts and Director of DE Foundation. President IUF. Paula Nimpuno Sidiki Cissé SB member since 04/04/2013. Civil Society Representative. SB member since 4/12/2014. Producer Representative. General Development planning consultant working on issues of rural Manager at ANADER, the National Agency for Rural enterprise, social justice and policy development. Formerly Development Support in Côte d’Ivoire. Program Officer for Economic Opportunities and Assets at the Ford Foundation Southern Africa. Jim Fisher SB member since 22/06/2010. Supply Chain Representative. Vanusia Nogueira Managing Principal of Triumph Revenue Advisors, a marketing SB member since 12/09/2014. Producer Representative. and consulting firm focused on building revenues and a Executive Director of the Brazil Specialty Coffee Association special expertise in retail coffee marketing including (BSCA). Vanusia comes from a coffee growing family. development of a premium coffee house concept for Melitta, USA. Juan Esteban Orduz SB member since 12/09/2014. Producer Representative. Richard Holland President of Colombian Coffee Federation, Inc., the North Former SB chair, SB member since 10/10/2007. Civil Society America subsidiary of the National Federation of Coffee Representative. Director Market Transformation Initiative at Growers of Colombia (FNC) which represents more than WWF. 563,000 coffee-growing families.

Ton van der Laan Cees van Rijn SB member since 04/12/2012, SB chair since 04/04/2013. Supply SB member since 09/12/2013. Supply Chain Representative. Chain Representative. CEO of Nidera, a commodity service Worked for more than 35 years in the agribusiness and food and solutions provider for the global agricultural markets and industry. He is former CFO at Nutreco and worked at Sara Lee, also worked for , Provimi, Unilever and Philips. McCain Foods and Nutricia.

Nalin Miglani SB member since 10/12/2010. Supply Chain Representative. Executive Vice President and Chief Human Resources Officer of Exl Service Holdings Inc. Former Chief HR and Corporate Development Officer at Nutreco; and former Chief HR and Communication Officer at Tata Beverage Group.

STANDARDS COMMITTEE Hugo Byrnes Michele Pisetta Industry Representative. VP Product Integrity, Royal Ahold, The Industry Representative. Sustainable Project Developer. Ferrero Netherlands. Trading Lux., Luxembourg.

Niwton Castro Moraes Ximena Rueda Fajardo Producer Representative. Technical Advisor for Coffee of Producer Representative. Research Associate, Stanford Department of Agriculture of Minas Gerais State, Brazil. University, USA (previous: Strategic Marketing Director, Federación Nacional de Cafeteros de Colombia). Jean-Yves Couloud Producer Representative. Program Coordinator, World Cocoa Leonardo Sánchez Hernández Foundation, Côte d’Ivoire. NGO Representative/Individual Expert. Environment and Certification Expert, Aceres Consultants, Costa Rica. Stephanie Daniels NGO Representative/Individual Expert. Program Manager, Winaryo Suyono Agriculture & Development, Sustainable Food Lab, USA. Certification Body Representative. Control Union Certifications, Indonesia. Anneke Fermont Industry Representative. Regional Sustainability Manager, Kraig Kraft Kyagalanyi Coffee Ltd. (Volcafe), Uganda. NGO Representative/Individual Expert. Regional Technical Advisor for Coffee and Cocoa at Catholic Relief Services, Jürg von Niederhaeusern Nicaragua. Industry Representative. Head of Social Compliance & Standards, Migros, Switzerland. Britta Wyss Bisang Non-Voting Member. Standards Director, UTZ.

UTZ 2015 GOVERNANCE & FINANCIAL INFORMATION COFFEE COCOA TEA UTZ certified production volume green coffee (MT) UTZ certified group members (smallholders) UTZ certified production volume (MT) UTZ certified group members (smallholders) UTZ certified production volume (MT) UTZ certified group members (smallholders) Country 2010 2011 2012 2013 2014 2015 Country 2010 2011 2012 2013 2014 2015 Country 2010 2011 2012 2013 2014 2015 Country 2010 2011 2012 2013 2014 2015 Country 2011 2012 2013 2014 2015 Country 2011 2012 2013 2014 2015

Global UTZ certified Global 162,164 160,737 165,133 164,721 161,650 186,948 Global UTZ certified Global 41,037 149,633 256,111 336,351 406,702 465,547 Global UTZ certified Global* 23,450 30,757 9,000 8,615 12,694 Coffee Volume (MT) 394,003 476,903 715,648 726,591 729,918 821,399 Cocoa Volume (MT) 70,228 212,690 534,614 691,490 879,771 917,603 Tea Volume (MT) 49,132 65,132 59,979 71,234 86,294 Latin America 19,506 30,419 36,535 34,470 27,634 40,892 Africa 37,386 132,960 221,148 284,000 354,253 399,428 Africa 19,864 27,221 8,530 8,160 10,597 Latin America 267,339 338,449 473,580 459,277 449,359 496,340 Asia 24,934 24,225 40,788 49,089 51,120 53,775 Africa 58,665 171,191 440,740 571,859 754,802 775,685 Latin America 2,881 10,526 19,902 21,414 20,570 20,913 Africa 38,998 48,226 37,413 38,076 45,905 Asia 3,569 3,525 460 445 2,090 Brazil 136,444 166,274 232,336 228,677 244,896 249,126 Africa 117,724 106,093 87,810 81,162 82,896 92,281 Côte d’Ivoire 44,807 96,361 288,483 403,075 506,478 486,842 Asia 770 6,147 15,061 30,937 31,879 45,206 Kenya 26,935 31,641 20,903 21,472 28,787 Latin America 17 11 10 10 7 Colombia 50,649 62,127 78,171 79,862 69,198 81,379 Ghana 12,431 37,407 85,936 99,497 132,107 169,057 Malawi 11,073 10,929 10,832 10,721 11,195 Honduras 33,548 42,405 64,408 60,348 69,253 72,652 Nigeria - 6,708 18,039 28,014 61,106 70,777 South Africa 990 1,079 1,078 1,540 1,264 *Global UTZ certified Tea # of Smallholders Peru 20,789 37,003 58,452 48,511 32,230 36,370 Sierra Leone - 9,180 31,073 17,312 19,374 5,451 UTZ certified farms / estates Zimbabwe - 4,577 4,600 4,342 4,660 Guatemala Cameroon - 438 2,799 2,938 15,320 10,892 10,333 13,487 15,997 12,391 8,841 11,382 Country 2010 2011 2012 2013 2014 2015 Nicaragua 7,051 10,556 13,704 11,407 14,250 25,352 UTZ certified farms / estates Uganda - 17,999 9,750 13,935 14,320 14,061 Asia 9,218 15,909 21,653 29,632 36,899 Mexico 4,774 2,965 7,891 15,844 7,700 18,040 DR of Congo 2,372 2,258 5,087 5,607 12,987 China - - - 1,332 1,786 Country 2010 2011 2012 2013 2014 2015 Global* 2 4 9 40 77 84 Costa Rica 3,059 2,999 1,857 1,583 2,495 1,713 Tanzania 1,427 725 2,402 2,000 - 4,993 India 2,329 6,710 7,909 14,679 19,244 UTZ certified farms / estates Bolivia 221 251 377 272 166 - Togo - - - - 489 624 Indonesia 5,972 7,913 10,073 8,000 8,060 Africa - 1 - - 1 - Dominican Republic 115 200 204 204 159 129 Total farm units 476 569 710 845 865 1,679 Japan - - - - 54 Country 2011 2012 2013 2014 2015 Latin America 2 3 8 36 69 77 El Salvador 354 182 182 177 96 108 Latin America 10,949 37,183 73,045 80,131 89,116 86,904 SriLanka 889 1,272 3,655 5,447 7,727 Panama - - - - 76 90 Latin America 385 462 599 725 755 1,557 Peru 793 11,382 23,829 31,688 33,482 32,115 Asia - - 1 4 7 7 Vietnam 28 14 14 175 28 Total farm units 87 70 55 70 81 Asia 59 69 73 83 73 70 Ecuador 190 776 4,841 13,903 23,973 31,789 *Global UTZ certified Cocoa # of Farms / Estates (Individual farmers & multi-site) Asia 98,467 112,173 209,523 233,285 241,205 278,218 Africa 32 38 38 37 37 52 DominicanRepublic 9,966 24,819 44,263 33,363 29,490 18,285 Latin America 916 997 913 3,526 3,491 Africa 27 26 13 14 17 Vietnam 67,854 75,762 158,986 185,928 191,284 224,579 Nicaragua - - - 33 114 929 Workers on UTZ certified farms Argentina 728 810 726 3,526 3,437 Asia 13 32 41 55 61 India 18,056 27,084 31,549 33,520 34,688 38,812 Brazil - - - 790 1,538 2,057 Colombia 188 187 187 - 54 Latin America 47 12 1 1 3 Indonesia 12,052 8,001 17,527 12,510 12,997 10,654 Mexico - 206 112 354 513 444 Country 2010 2011 2012 2013 2014 2015 Papua New Guinea 505 1,327 1,461 1,328 1,266 1,022 Panama - - - - 5 66 China - - - - 969 3,151 CostaRica ------Global UTZ Workers on UTZ certified farms Colombia - - - - - 1,218 certified # of 3,600 6,884 10,539 14,405 18,625 17,645 UTZ certified first buyer sales (MT) Workers on UTZ certified farms Africa 28,197 26,281 32,546 34,029 39,355 46,840 Country 2010 2011 2012 2013 2014 2015 Cocoa workers* Uganda 11,078 9,773 18,609 19,395 20,443 20,912 Asia 613 4,316 20,830 39,500 35,853 55,014 Country 2011 2012 2013 2014 2015 Country 2011 2012 2013 2014 2015 Kenya 6,760 6,597 7,801 5,910 6,084 7,077 Global UTZ Indonesia - 3,238 19,204 37,776 33,768 52,852 Africa 648 1,994 4,884 6,548 7,500 7,638 Vietnam Ethiopia 7,612 6,623 3,693 6,578 8,592 12,739 certified Coffee 231,437 305,916 374,794 350,766 242,481 257,248 507 1,078 1,626 1,725 2,086 2,163 Latin America 2,053 3,392 3,284 3,993 5,791 6,486 Global UTZ Certified Global UTZ Tanzania Papua New Guinea 2,390 3,047 1,381 1,708 1,696 2,319 # of workers 107 - - - - - Asia 889 1,498 2,371 3,864 5,334 3,521 1st Buyer Tea Sales 2,939 3,074 4,044 4,527 5,763 certified Tea 27,876 45,707 52,540 75,085 58,429 Zambia - - 424 - - - # of workers DRofCongo (Permanent&Seasonal) - - 313 313 1,864 2,299 Latin America 137,270 197,921 220,732 164,424 90,366 112,086 Africa 2,229 1,906 2,524 3,292 3,939 Burundi 357 220 286 125 175 494 Asia 70,092 85,399 123,245 151,571 133,311 103,700 Kenya - 24 - 272 580 Africa 16,705 20,057 18,593 16,549 15,060 Rwanda - - 39 - 500 1,000 UTZ certified first buyer sales (MT) Africa 24,075 22,596 30,817 34,771 18,804 41,462 Malawi 1,347 1,636 1,347 1,708 1,771 Asia 10,962 25,272 33,569 58,427 43,003 Malawi - 20 - - - - South Africa* Country 2010 2011 2012 2013 2014 2015 882 112 826 827 1,076 Latin America 209 378 378 109 366 Zimbabwe - 134 350 485 512 Global UTZ certified Asia UTZ certified first buyer sales (MT) 1st Buyer Cocoa Sales 17,109 42,704 118,641 295,084 390,416 581,709 629 909 1,255 971 1,352 China - - - 16 196 Country 2010 2011 2012 2013 2014 2015 India Africa 12,832 33,973 87,046 247,465 336,732 483,978 - 244 485 466 812 Indonesia 629 631 755 331 221 Global UTZ certified Côte d’Ivoire 12,832 27,949 60,399 190,493 217,689 373,933 Japan - - - - - 1st Buyer Coffee Sales Ghana - 866 15,995 33,167 79,664 63,308 120,994 136,752 188,096 224,028 258,867 238,392 SriLanka Nigeria - 2,763 3,449 15,282 20,889 25,105 - 34 15 158 122 Vietnam - - - - - Latin America 88,980 98,954 132,581 158,317 174,112 167,783 Sierra Leone - 1,664 2,421 1,159 3,453 6,584 Brazil 51,593 58,424 79,666 91,392 112,436 99,631 Cameroon - - 176 754 6,156 6,421 Latin America 81 259 266 264 472 Colombia 6,625 8,327 9,218 20,196 21,699 27,821 Uganda - - 1,687 3,729 6,220 3,956 Argentina 81 259 266 264 472 Peru 5,910 5,797 6,278 5,691 4,528 5,430 DR of Congo - 480 1,596 2,832 2,661 3,352 Colombia - - - - - Nicaragua 1,816 2,691 3,282 5,275 6,376 2,065 Tanzania - 251 1,323 50 - 1,134 Guatemala 4,407 4,557 2,715 2,321 4,617 4,865 Togo - - - - - 186 Mexico 1,063 533 2,107 5,248 5,260 5,261 Costa Rica 2,443 1,292 1,052 946 2,327 819 Latin America 4,277 8,535 21,457 24,100 32,380 67,921 Bolivia 275 207 228 63 42 7 Peru 513 3,162 11,138 11,836 16,233 28,170 Dominican Republic 38 75 115 78 - Ecuador - 689 2,331 5,849 8,873 26,888 El Salvador 76 42 - 19 10 - Dominican Republic 3,764 4,684 7,987 6,348 6,991 12,187 Nicaragua - - - 3 43 305 Asia 28,869 35,647 50,165 60,421 76,621 61,672 Brazil - - - 64 239 218 Vietnam 23,806 25,519 38,669 49,787 67,380 50,768 Mexico - - - - - 129 India 3,086 7,682 8,815 5,947 6,716 7,033 Panama - - - - - 23 Indonesia 1,728 1,762 2,108 4,408 2,294 3,398 Costa Rica ------China - - - - - 223 Colombia ------Papua New Guinea 250 684 573 279 230 250 Asia - 196 10,139 23,519 21,304 29,810 Africa 3,145 2,151 5,351 5,290 8,135 8,936 Indonesia - - 9,108 22,371 20,416 29,010 Kenya 865 509 2,548 1,187 1,382 1,401 Vietnam - 181 1,031 1,148 888 800 Uganda 1,488 1,373 1,906 2,065 2,499 3,118 Papua New Guinea - 14 - - - - Ethiopia 216 96 568 1,662 3,623 3,358 Tanzania 38 76 235 200 277 230 Burundi 295 97 58 - 181 389 Zambia 242 - 36 77 - - DR of Congo - - - 99 173 250 Rwanda - - - - - 190

UTZ UTZ 2015 FACTS & FIGURES PRODUCING COUNTRIES Number of producing countries 2010 2011 2012 2013 2014 2015

COFFEE 21 22 23 21 24 23

COCOA 8 14 14 16 17 19

TEA 8 10 10 10 12

Argentina Dominican Republic Kenya Sierra Leone Brazil Ecuador Malawi South Africa Burundi El Salvador Mexico Sri Lanka Cameroon Ethiopia Nicaragua Tanzania China Ghana Nigeria Togo Colombia Guatemala Panama Uganda Costa Rica Honduras Papua New Guinea Vietnam Côte d’Ivoire India Peru Zambia Democratic Republic Indonesia Rwanda Zimbabwe of Congo

CERTIFIED AREA (h ) UTZ certified first buyer sales (MT) 2010 2011 2012 2013 2014 2015

Global UTZ certified Coffee Area 320,308 348,086 508,661 473,953 473,953 473,953

Latin America 188,688 235,463 325,975 295,915 286,460 338,367 Asia 51,833 58,334 90,154 102,124 109,318 120,237 Africa 79,787 54,290 92,532 75,914 79,800 90,426

Global UTZ certified Cocoa Area 173,494 460,390 902,360 1,199,298 1,502,424 1,530,137

Africa 150,796 401,950 792,940 1,059,477 1,355,869 1,358,902 Latin America 21,968 52,140 88,252 97,473 105,750 106,070 Asia 729 6,300 21,168 42,348 40,805 65,165

Global UTZ certified Tea Area - 26,230 36,034 32,757 38,605 47,828

Africa - 18,772 25,329 18,266 19,842 24,667 Asia - 6,841 10,449 14,249 17,915 21,906 Latin America - 618 256 242 849 1,256

UTZ