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SUSTAINABILITY NEWSLETTERMAY 2019

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WELCOME

Hello everyone,

We are pleased to share with you the latest edition of our quarterly sustainability newsletter.This newsletter reports progress against our sustainability commitments. To this end, here’s a look at how we’re doing with regards to our sourcing practices, traceabilityin our soy supply chain and the zero-deforestation policy.

Also, tune in to the Innovation Forum’s weekly podcast where Ben Vreeburg, Sustainability Director, shares his perspective on sustainable business practicesin the palm oil industry. Meanwhile, we continue our work on the smallholdersupport program and make great strides there. Scroll down to read all aboutthis and more!

Regards,

Sustainability TeamBunge Loders Croklaan

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NEWS UPDATES

NEWS UPDATESApril 2019 – Update on the palm oil dashboardThe Palm Oil Dashboard, a platform to communicate Bunge Loders Croklaan’s traceability information and sustainability progress in the palm oil supply chain, is updated every quarter. You can find the latest update here.

March 2019 - High conservation value driving change in MalaysiaIn a video from Earthworm Foundation, one of our Sustainability Managers, Kaixiang Chin, talks about our sustainability journey with Ladang Rakyat Terengganu (LRT). Over the past two and a half years, we have guided and supported them through the process of sustainable practices. In honor of this partnership and our desire to support and reward good practices, we have decided to fund an HCV assessment for LRT.

February 2019 - Creating a framework for soy supply chain traceability disclosure in BrazilBunge is a founding member of the Soft Commodities Forum (SCF), a global platform for leading soft commodities companies convened by the World Business Council for Sustainable Development. This membership helps Bunge leverage its experience and leadership position to help raise industry standards and in-turn meet our corporate commitments. In February, the SCF committed to a common framework for reportingand monitoring progress on transparent and traceable supply chains for soy in Brazil’s Cerrado region.

February 2019 - Podcast Innovation Forum: Ben Vreeburg discusses the future of palm oil supplyIn the Innovation Forum’s weekly podcast, Ben Vreeburg shares his perspective on how to achievetransparency at the plantation level in palm oil supply chains, the challenges and stakeholderinterests. He outlines how the industry is implementing the new Roundtable on Sustainable alm Oil (RSPO) principles and why these now better represent leading industry practices. Do listen in. Ben’s segment starts 7 minutes and 25 seconds into the podcast.

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OUR QUARTERLY STORY

NON-DEFORESTATION POLICY MONITORS30+ MILLION ACRES OF SOY FARMLANDGreater transparency of our supply chain is crucial in demonstrating our commitment to sustainability. As a leading company in the soy sector, we regularly disclose information about our zero-deforestation policy. Our latest progress report on zero deforestation shows that for the 2018-2019 season we monitored over 43% more acreage than the previous year across nine high-risk regions in Brazil, Paraguay and Argentina. The total area of farmland we track stretches more than 12.5 million hectares (30 million acres), an area larger than England.

As our total number of supplying farms continues to grow, we are proud that our traceability figures remain very strong. Over 91% of all soy that we sourced directly from those regions in 2018 can be traced to its farm of origin. Many municipalities have reached over 98% of traceability, providing even more information from the sourcing shed. Furthermore, there is an 18% drop in new deforestation cases over the previous monitoring cycle.

RTRS is a platform to promote soy production and trade in accordance to standards agreed among multiple stakeholders in the value chain. In total, we purchased an equivalent of more than 190,000 metric tons of RTRS certified soy and credits.

READY TO DELIVERBunge was the largest trader of RTRS-certified beans in 2018. We are ready to deliver certified or self-assured deforestation-free products to meet customer demand

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EXPERT BLOG

For more than five years, Alidu has worked as a supply chain officer for Bunge Loders Croklaan in Tamale, Northern Ghana. He oversees the fruiting process in surrounding shea parklands in Ghana and other West African countries.

“Visiting the shea parklands to observe the fruiting process can be challenging as shea parklands are often located in rural areas where the roads are not always accessible due to floods. It is, however, a good way to evaluate what stage the fruiting process is at so we can estimate when the nuts will fall from the tree and the collection process can start.”

Shea trees grow in the Savannah Region in West-Africa. Trees fruit every year between March and July, and the nuts are collected from May until August. Alidu has also been involved in Sustainability projects in the Tamale Region. He organizes the distribution of shea rollers in Northern Ghana and was involved in the Warehouse project in the Upper East Region in Ghana.

FIRSTHAND ACCOUNT: ALIDU TIA, SUSTAINABILITY EXECU-TION OFFICER AT THE SHEA SUSTAINABILITY PROGRAM

“Being involved in on-the-ground sustainability activities is very gratifying work. It’s great to see and hear from the female entrepreneurs on how the tools we supply them help support their collection process and ultimately increase their yield and income. During our visits to the communities, we converse with the female entrepreneurs to learn from their experiences and to understand their challenges. Not only related to the shea collection process, but also to their community livelihoods.”

Learn more about our Sustainable Shea Sourcing Practices and Shea Sustainability Projects.

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Supplier engagement is part of Bunge Loders Croklaan’s sustainability journey to transform the palm oil sector and one of the initiatives to support that commitment is our smallholder support program. Initiated in partnership with the Kerry Group, the program supports the inclusion of smallholders in the supply chain and will boost small farmers’ productivity by helping them implement sustainable agricultural practices.

Since our first collaboration in July 2018, we’ve implemented several initiatives. Read on to learn more about the most recent ones:

• IOI Corporation has formally joined the smallholder support program to contribute vital expertise from their Agronomy and Sustainability department to this project. The program has recently been renamed ‘ILHAM.’ ILHAM derives from the Malay word that means ‘Inspiration’, an abbreviation that stands for ‘Initiatif Lestari Untuk Hasil Agrikultur Mampan’ meaning ‘A Sustainability Initiative towards a Sustainable Agricultural Production’.

• On March 8, Bunge Loders Croklaan in collaboration with the Fortuna Sustainability team and representatives from Kerry and the

IOI Agronomic team, conducted a foliar and soil sampling exercise at Kampung Basai, Kampung Monopod and Kampung Gusi. Smallholders were offered hands-on training on how to carry out sampling exercises, and package and label samples before they are sent to the lab for an analysis.

• On April 16, Bunge Loders Croklaan organized a classroom training in which the IOI Agronomist team helped the Fortuna Sustainability team understand the purpose of the soil sampling exercise and learn how to obtain samples in the field.

Based on the ILHAM fertilizer program framework, we have now concluded the socialization visits, survey questionnaires and foliar/soil sampling exercise for the three pilot sites. Results of the sample analysis is expected early June, after which the bio-fertilizers will be formulated based on the specific types of soil found in the samples.

SUPPLIER ENGAGEMENT

AN UPDATE ON THE SMALLHOLDER SUPPORTPROGRAM (PROJECT ILHAM)

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TRANSPARENCY

INCREASING TRANSPARENCY THROUGH ADOPTIONOF A UNIVERSAL MILL LISTThe complexity of the palm oil supply chain means that achiev-ing traceability to plantation level can be a time and resource-intensive process. A critical step towards palm oil supply chain traceability is identifying the locations of mills. In November2018, Global Forest Watch (GFW) introduced the new Univer-sal Mill List (UML), created by the World ResourcesInstitute (WRI), Rainforest Alliance (RA), Proforest and Daeme-ter.

The UML identifies and maps 1,815 mills across 26 countries in order to provide a better framework for companies looking to monitor and report on their commitments. The UML also integrates data contributed by processors, traders, consumer goods manufacturers, the RSPO and FoodReg.

Bunge Loders Croklaan has joined forces with GFW to inte-grate and verify our own mill list with the UML. Recent publi-cation of our mill lists now includes an additional column titled “UML Mill Code”. Since the industry uses a lot of different naming standards (think of POM versus Palm Oil Mill, Mill 4 versus Mill IV etc.), creating the link between the UML and BLC supplying mills will take some time. In our mill lists for Q4 2018, most of our supplying mills have already been linked to the UML codes. Our collaboration with GFW should ensure that soon we can provide all our supplying mills with a UML Mill Code, thereby increasing our data quality and transparency.

We urge all organizations in the palm oil supply chain that publish and share mill lists to also include the UML code in their publications.

Our mill lists are updated each quarter and published on our website and palm oil dashboard.

Copyright © 2019 Bunge Loders Croklaan, All rights reserved.

Please send your feedback and questions to blc.sustainability@bunge.com