Focus Ingredients for a changing world Sustainability Report 2010/11 Contents MEETING FUTURE CHALLENGES Sustainability snapshots . 3 Value chain perspectives . 6 From challenge to performance . 8 Synergies drive future opportunities . 9 STAKEHOLDERS AND STRATEGIES Stakeholder engagement . 12 Key impacts, risks and opportunities . 15 Focusing on what matters. .. 20 Sustainability strategies, targets . 22 28 Embracing a life cycle approach to sustainability . 26 SUSTAINABLE SOURCING Key impacts of our raw materials . 30 Robust approaches enable impact and risk reduction . 32 OPERATIONAL EFFICIENCY Our environmental approach . 38 Corporate carbon footprint . .. 39 Energy . 41 Greenhouse gases . .. 43 Water . 46 Materials and packaging . .. 51 36 Material waste . .53 Logistics . 54 Compliance . 55 SUSTAINABLE SOLUTIONS Solutions to meet global challenges . 58 Meeting customer needs . .62 Using LCA to change the discussion . .. 63 Inventing the future through market-driven innovation . 66 PEOPLE A powerful global workforce . .. 70 Employee development . 72 56 Employee engagement . 73 Human rights and our Code of Conduct . 75 Health and safety . 76 Community and society . 79 OUR COMPANY Our business and products . 84 Bringing sustainability to the top . 87 External commitments . 88 Recognition and awards . 89 Reporting . .. 90 Assurance . 92 68 2 SUSTAINABILITY REPORT 2010/11 CONTENTS Sustainability snapshots S E G 2 010 / 11 ALLEN DuPont acquires Danisco A/S in May 2011 in accordance with Danish law . This procedure is expected ch E E EOPLE P On May 19, 2011, DuPont, through a wholly-owned subsidiary, to be completed during the third quarter of 2011, at ur completed the acquisition of approximately 92 .2% of the which point DuPont will own 100% of Danisco’s shares . T fu Our outstanding shares of Danisco A/S (“Danisco”) pursuant G N to a previously announced tender offer for all of Danisco’s This report describes the Danisco sustainability I outstanding shares, excluding treasury shares . performance prior to the DuPont acquisition and will EET serve as the last sustainability report published by Danisco . M The remaining outstanding shares are in the process of We will endeavor to align our sustainability strategies going being acquired through a compulsory acquisition procedure forward with the new DuPont organization and business . AWARD WINNING EmPLOYEE YEARS IN THE DOW SusTAINABILITY REPORT ENGAGEMENT INDEX JONES SUSTAINABILITY 2009/10 INDEX #1 72% 10 COMPLETED LIFE CYCLE rOUNDTABLE ON ENERGY REducTION ASSESSMENTS (LCA) SUSTAINABLE PALM OIL siNCE 2009/10 CERTifiED PLANTS 14 7 0 .4% INcrEASE IN WATER REducTION CO2 REducTION RENEWABLE ENErgY siNCE 2009/10 siNCE 2009/10 siNCE 2009/10 3 6%. 2 1%. 12% MEETING FUTURE CHALLENGES SUSTAINABILITY REPORT 2010/11 3 Meeting future challenges Over 9 billion people by 2050 — more than triple the world population in 1960 and 30% more than today . In our lifetimes – and those of our children – the world will The need for renewable energy to power communities and change in unprecedented ways . As the population soars to connect people will grow dramatically as rural areas and more than 9 billion over the next 40 years, we will confront emerging economies connect to the grid in greater numbers food, health, energy, and ecosystem challenges unknown to than ever before . And finite fossil fuels will challenge us to our parents and grandparents . Demand on natural resources innovate new technologies for transportation, chemicals, like water and arable land will increase exponentially to meet plastics and other petroleum-based products . the nutrition needs of a burgeoning population, requiring more efficiency in farming, food production, and distribution . These issues are daunting, to be sure, but not Urban crowding and degraded environments will drive us to insurmountable . Working together across business, pioneer new ways to protect human health . government, academia, and civil society, we can devise new solutions for even the most significant challenges . At Danisco, we have already begun . Nine billion people in 2050 SUSTAINABILITY S Balancing environmental, E G social and economic ALLEN factors throughout ch E E EOPLE P the value chain ur T fu Our G N I EET M Embracing the global challenges We recognise the significance of our role in creating truly In particular, Danisco is sustainable products . We embrace our responsibility – as a positioned to help address company, as a leader, and as an innovator – to contribute to four global challenges – food, a brighter future for all . And we know we can draw on our health, energy and chemicals . Together, legacy of stewardship to forge new paths to that future, where these four challenges serve as a compass for our people are healthy and well-nourished, and where ecosystems business strategy, turning difficulties into catalysts for change are leveraged responsibly to support global needs for energy, and challenges into opportunities for leadership toward a chemicals and other resources . Although there is much more brighter future . We invite you to learn more in this report . to do, we believe we are already contributing to that future . Population growth 2 010: 7 billion 2050: 9 billion FOOD Wasteful inefficient, Efficient, environmentally neutral, environmentally degrading waste-free in production, distribution & consumption HEALTH Population that is ageing, Resources, foods, medicines overweight & undernourished that promote lasting health ENERGY Fossil fuel dependence, Renewable energy solutions climate & security issues to replace oil & gas supplies CHEMICALS Largely petroleum-based Efficient, bio-based substances in products alternatives to petrochemicals MEETING FUTURE CHALLENGES SUSTAINABILITY REPORT 2010/11 5 Meeting future challenges Value chain perspectives Our suppliers The approximately 2,000 suppliers who provide us with the raw materials to develop innovative, sustainable solutions, range from specialty farmers to large agricultural operations . Regardless of their size, every Danisco supplier is important to our business . We work to ensure that all our suppliers understand and live up to our expectations for strong ethical practices, good governance, sound environmental management and responsible human rights measures . Should a supplier need assistance meeting our Supplier Code of Conduct or aligning with our values, we believe it is in our collective best interest for us to Danisco supplier support their capacity development to contribute to a “Here in Colima the quality of the limes are better than in the sustainable future . other states . Since we started working with Danisco, we do not treat the lime peel as waste, and we thank Danisco for the support they have given us “. Javier Moreno Contreras, Owner - AELTSA S.A. O ur employees People are the key “ingredient” in Danisco’s formula for success . Attracting and retaining dedicated,and talented people across all roles in all the countries where we operate is a business imperative .That’s why we work and invest to strengthen our human resource capabilities and employee programmes .The experience, expertise and creativity our customers value is alive and well in the 6,890 people we employ in 40 countries DaniscoSupplier employeeto Danisco “IHere chose in ColimaDanisco theto make quality a differenceof the limes . For is me,better sustainability than is a seriesin the ofother projects, states processes, . Since we and started initiatives working one canwith do both in the companyDanisco, weand dopersonally not treat to the make lime the peel world as awaste, better and place . It is demonstratedwe thank Danisco not justfor thein initiatives support like they Think have Green, given Ausct . Green, but also in engagement through dialogue and giving ”. Gilda Sosa Witling, HR Consultant 6 SUSTAINABILITY REPORT 2010/11 MEETING FUTURE CHALLENGES S E Our customers G Danisco customers play an active ALLEN ch E E role in shaping the products we EOPLE P develop and the solutions we devise ur T fu Our to meet their ever-increasing needs G for products that improve health, N I boost nutrition, lower environmental EET impacts, replace harmful chemicals M with safer alternatives and address rapidly expanding global energy demands .They are our partners and our inspiration in creating products to Danisco supplier meet some of society’s most difficult Danisco customer global issues . Danisco customer “Here in Colima the quality of the limes are better than in the ”“Everybody in the food business needs to work together – our other states . Since we started working with Danisco, we do suppliers, our growers, the retailers, and also our consumers . not treat the lime peel as waste, and we thank Danisco for the We all have a stake in this and we all need to work together support they have given us “. on the global challenges we face ”. Javier Moreno Contreras, Owner - AELTSA S.A. Steve Peterson, Director Sourcing Sustainability - General Mills The consumers We do not work directly with consumers, but they are ever-present in our thoughts .The fundamental goal of all Danisco products is to facilitate improvements in the lives of consumers the world over, whether that means supporting health through enhanced nutrition or reduced fats and salt, contributing to food affordability, bolstering food safety or providing responsible and renewable energy sources . Consumer Understanding “Shopping has become quite complicated and confusing . If I see value chain words I can’t pronounce, I automatically