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SUSTAINABILITY NEWSLETTERJULY 2018

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WELCOME

Welcome to the latest edition of our quarterly sustainability newsletter!

I’m pleased to share highlights of our sustainability efforts as Bunge Loders Croklaan.Read on to find out what our teams around the globe have accomplishedover the past months as well as insights on what’s next.

Enjoy reading,

Ben VreeburgSustainability Director, Bunge Loders Croklaan

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NEWS UPDATES

NEWS UPDATES

June 2018, Burkina Faso – As Bunge Loders Croklaan, we organized an Energy EfficientStove Ceremony to mark the donation of 100 stoves to several groups in BurkinaFaso – also where we source our shea nuts from. We provided the stoves to the localcommunities to have a positive impact on the environment. Read Our QuarterlyStory in this newsletter to learn more about the initiative.

April, 2018 – Malaysia – A second Peat Roadshow took place in Terengganu,Malaysia with growers from three estates in the region attending. The objectiveof the Peat Roadshow is to provide step-by-step support and share bestmanagement practices on existing plantations to all FFB suppliers byleveraging the relationship between growers & miller.

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OUR QUARTERLY STORY

OUR QUARTERLY STORY:THREE PROMISING SHEA INITIATIVESProgram lead: Joost van Ginneken Bunge Loders Croklaan, Supply Chain Manager Africa

As you probably might know, we are an active member of the Global Shea Alliance,an association that promotes shea production as a sustainable industry. We see it asour responsibility to develop fair, sustainable and long-lasting relationships with thelocal communities involved in sourcing and processing shea. We take concreteaction and are pleased to share an update on three initiatives:

Donation of 100 Energy Efficient Stoves in Burkina FasoA less known fact is that the collection of shea nuts is done predominantlyby women. This June, we donated 100 stoves to women groups in BurkinaFaso in collaboration with Nafa Naana, a local social enterprise thatproduces the artisanal stoves locally. Nafa Naana will also train thesewomen on how to use the stoves.

Overall, the initiative is meant to have a positive impact on theenvironment. The artisanal stoves will improve fuel efficiency asresult of the improved insulation, heat transfer and airflow. Thepotential fuel savings of these stoves are expected to be morethan 40% for tasks such as water boiling and cooking comparedto the more traditional three-stone-fire method. They also usearound 40% less wood. The stoves will be used to parboilthe shea nuts and can also be used for cooking. An importantbenefit for the women is that they will spend less time on cooking and collecting wood.

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OUR QUARTERLY STORY

Supporting the Fludor Benin SA. Sustainability Program In Benin, we support one of our main shea butter suppliers Fludor Benin SA with theirsustainability program. Their training program, also supported by the Global SheaAlliance, benefits around 15 women groups in the communes of Djougou and Bassila.So far more than 6.000 people have participated in the training courses with theobjective to strengthen their organizational, commercial and associative capacities.

Distributing Shea Rollers in West-AfricaAs part of a pilot last year, we distributed more than 100 rollers in 11communities in Burkina Faso. This enabled approximately 500 women tobenefit from the rollers as they collected the shea nuts. The womenconfirmed that the rollers increase efficiency, make the work less heavyand this contributes to their personal safety & health. We have decidedto continue the distribution in 2018. An additional 300 rollers will bedistributed among women groups in Burkina Faso, Ghana and Benin.

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UPDATE

UPDATE: PALM OIL DASHBOARD ANDSHEA TREACEABILITY DATAWe invite you to take a look at the new version of our integrated Palm Oil Dashboard.We are also pleased to share the latest Shea Traceability Data. This information givesyou insight into our progress towards sustainable and traceable supply chainsthroughout the entire organization.

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EXPERT BLOG

EXPERT BLOG: HOW TO CONTRIBUTE TOREFORMING THE PALM OIL SECTORBy: Ben Vreeburg, Sustainability Director Bunge Loders Croklaan

The last couple of years RSPO has been criticized for lack of credibility and a certification standard that is holding back the progressive reform of the sector. Despite all this negative energy, RSPO has gained a leading position in the sustainability debate around palm oil and approximately 20% of the global palm oil production is now RSPO certified.

What if… the people and organizations that criticized RSPO had instead demanded that downstreamRSPO members should buy 100% RSPO certified oil? A higher demand for RSPO oil would furtherstimulate production of RSPO certified material. More growers would have joined the RSPO.RSPO could serve as a stepping stone to long-term higher voluntary standards such asRSPO NEXT, NDPE and the POIG standard. When NGOs demand that producers adopt thesehigher standards, they overlook this need for a step-wise process. RSPO may not be perfectbut positive attention from NGOs on driving the uptake of RSPO certified oil will serve theircause much more effectively than more criticism.

I believe increased demand of RSPO would send a strong signal to growers. Incentivesare critical: growers need to see that there is reward for investing in continualimprovement and sustainability practices. RSPO certified oil provides this andit is the only game in town as far as certification is concerned. However, thecontinued undermining of the RSPO is sending mixed signals to growersand consumers.

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OUR STRATEGY

OUR STRATEGY TO DELIVEROUR 2020 NDPE COMMITMENTSIn response to a Greenpeace call for delivering on corporate 2020 NDPE (No Deforestation, No Peat, No Exploitation) commitments, Bunge published a statement that outlines how we will support our customers to deliver on thesecommitments. Four key elements of the strategy include:

1. Engaging with our direct mill supply base We do this through systematic programs such as BMP (Best Practice Management) projects and workshops on for example peat and labor. This enables our direct suppliers in becoming compliant with Bunge’spalm policy as well as the NDPE policy.

2. Building reliable trading partnershipsWe work with trusted partners and proactively engage with them to review the implementation oftheir NDPE policies. 85% of Bunge’s palm oil volumes is indirectly sourced through tradingpartners with NDPE policies in place.

3. Contributing to the elimination of deforestation We see the benefit of a collective industry effort and are actively contributing through remotemonitoring programs and screening of indirect supplier groups and by supportinglandscape projects. Currently 30% of our sourced Palm Oil volumes are verifieddeforestation free.

4. A clear grievance process in placeOur grievance process is a reactive element to underpin both direct and indirectsuppliers –this procedure is clearly outlined on our website. Please send your feedback and questions to letscreatetogether@bunge.com.