U.S. SOY SUSTAINABILITY PROTOCOL

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1 U.S. SOY SUSTAINABILITY PROTOCOL HET COMITE NETWORKING EVENT JIM SUTTER, CEO U.S. SOYBEAN EXPORT COUNCIL U.S. SOYBEAN EXPORT COUNCIL Funded by the soybean farmers checkoff and USDA-FAS thru ASA Operating in 70 countries with approximately 125 staff/contractors Non-profit trade association with 70 member companies Founded in 2005 building on 50 years on U.S. Soy farmer international efforts thru ASA 1

2 U.S. SOYBEAN FARMING WE GROW SOY ON 34 MILLION HECTARES OF LAND 84% OF HECTARCES OWNED BY FAMILY FARMERS, 96% FARMED BY FAMILY FARMERS U.S. SOY EXPORTS VALUED AT OVER $30 BILLION APPROXIMATELY 55% OF U.S. SOY IS EXPORTED ANNUALLY USDA COMMITMENT TO CONSERVATION AG CONSERVATION IMPROVEMENT FOR OVER 75 YEARS USDAinvests over $6 billionannually in conservation programs with over 12,000 employees in conservation and compliance USDA has conservation offices in over 2,200 locations including almost every county in the U.S. 2

3 U.S. SOYBEAN SUSTAINABILITY ASSURANCE PROTOCOL Based on U.S. national system of conservation laws Includes best production practices by 275,000+ U.S. Soybean producers Participation determined annually (>90% last few years) Aggregate approach Third party audit Quantifiable metric based results RTRS/SSAP benchmark U.S. Soy production sustainability continuous improvement goals U.S. SOYBEAN SUSTAINABILITY ASSURANCE PROTOCOL (SSAP) Four directives with control measures & regulations 1. Biodiversity and high carbon stock wetland, grassland, forest, biodiversity 2. Production practices conservation tillage, crop rotation, precision farming 3. Public and labor health and welfare EPA, EEO, OSHA 4. Continuous improvement CRP, conservation programs, training and info sharing 3

4 SSAP AUDIT Audits includes producer self-audit and independent third party audit by USDA-FSA of 8-11% of producers participating in farm program Over 23,000 farm tracts audited in % of producers found in compliance Out of compliance producers face significant penalty (cannot participate in US farm program and programs such as crop insurance) SSAP MEASUREMENT AND CERTIFICATION Annual measurement system of environmental impacts Comprehensive USDA NASS environmental indicators reports Field to market reports Life cycle analysis Certification done on mass-balance, aggregate system by soy export sustainability (SES) 4

5 CERTIFICATION Issued certificates for over 600,000 metric tons in 2015 Approved by NEVEDI, working with FEFAC, pilot program with UNILEVER REDUCING RESOURCE IMPACTS TO PRODUCE SOYBEANS Note: Data is presented in an index form, where the year 2000 = 1 and a 0.1 change is equal to a 10% difference. Index values allow for comparison of change across multiple dimensions with differing units of measure. INDEX OF PER BUSHEL RESOURCE IMPACTS TO PRODUCE SOYBEANS, UNITED STATES,

6 SSAP SUSTAINABILITY GOALS FOR US SOYBEANS BY 2025, FROM 2000 BENCHMARK Key Performance Indicators Unit of Measure Total Potential Reduction (%) Land Use Planted acres per bushel 10 Soil Erosion Tons per bushel 25 Energy Use BTUs per bushel 10 GHG Emissions Pounds CO 2 e per bushel 10 CROPLAND DECREASED WHILE FOREST LAND INCREASED 6

7 SURFACE AREA BY LAND USE 2010 MILLIONS OF ACRES AND % OF TOTAL SURFACE AREA Water; 51; 3% Federal land; 402; 21% Cropland; 361; 18% CRP land; 27; 1% Pastureland; 120; 6% Developed Land; 113; 6% Other Rural Land; 51; 3% Forestland; 409; 21% Rangeland; 409; 21% Total Surface Area = 1,944 Million Acres Cropland contains cultivated and non-cultivated cropland U.S. FARM PRODUCTION SWING TO SOYBEANS 40 Planted Area (Million Hectares) * Corn Soybeans Wheat 7

8 CULTIVATED AND NON-CULTIVATED CROPLAND, BY YEAR (MILLIONS OF ACRES) , , , ,5 52,3 52, ,9 362,6 334,9 326,8 314,4 306,7 308, Cultivated Cropland Non-Cultivated Cropland EROSION ON CROPLAND, BY YEAR (BILLIONS OF TONS) 3, ,5 2 1,38 1, ,5 0,99 0,85 0,81 0,78 0,74 1 0,5 1,67 1,48 1,18 1,05 1,02 0,97 0, Sheet & Rill Erosion Wind Erosion Cropland contains cultivated and non-cultivated cropland 8

9 SSAP CONSIDERED FUNCTIONALLY EQUIVALENT TO RTRS All five RTRS principles are addressed in the U.S. Soybean Sustainability Assurance Protocol (SSAP). The SSAP meets or substantially meets 84 of the 98 elements of the RTRS. The RTRS is a global standard and thus has to address many civil society criteria that are enforced in the U.S. by state and federal statutes and regulations. The 14 RTRS elements that were not directly met by the SSAP were predominantly associated with communications and civil society requirements rather than conservation activities on the land. SSAP has comprehensively endangered species and wildlife habitat conservation and wetlands protection not as clearly addressed in RTRS U.S. SOY SSAP APPLICATION TO EU RED USSEC submitted application for EU RED on April 17 Based on SSAP which addresses criteria under the RED Conservation requirements for US farmers are directly linked in US Farm Program 95% of US farmer participate in Farm Program Audits on 23,000 land tracts GHG calculations based on USDA NASS official data for CRDs (crop reporting districts) 223 CRDs with average of 150,000 hectares NASS statistics determines USDA supply forecast/official data 9

10 THANK YOU 10