CDP. Module: Introduction. Page: W0. Introduction. CDP 2016 Water 2016 Information Request W0.1. Introduction

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1 CDP CDP 2016 Water 2016 Information Request Syngenta AG Module: Introduction Page: W0. Introduction W0.1 Introduction Please give a general description and introduction to your organization. Syngenta is one of the world s leading agricultural input companies with over 28,000 employees in some 90 countries dedicated to our purpose: Bringing plant potential to life. Syngenta uses its expertise in plant breeding, crop protection and seed care to deliver solutions designed to bring plant potential to life. Whether they grow corn or rice, vegetables or flowers, farmers around the world trust Syngenta to help them produce healthy, premium crops and minimize the use of precious natural resources. We contribute to addressing the global challenge of food security and feeding a growing population by increasing yields through technology, improve crop quality, help farmers use natural resources more efficiently and create benefits for rural communities. Through our world-class science, broad portfolio, leading crop solutions and strong presence in all agricultural markets, we are uniquely positioned to help growers around the world to grow more from less. W0.2 Reporting year Please state the start and end date of the year for which you are reporting data. Period for which data is reported Wed 01 Oct Wed 30 Sep 2015

2 W0.3 Reporting boundary Please indicate the category that describes the reporting boundary for companies, entities, or groups for which water-related impacts are reported. Companies, entities or groups over which operational control is exercised W0.4 Exclusions Are there any geographies, facilities or types of water inputs/outputs within this boundary which are not in your disclosure? Yes W0.4a Exclusions Please report the exclusions in the following table Exclusion why you have made the exclusion Very small sites and office activities The water consumption is insignificant (< 0.1 % of the total water consumption) Further Information Module: Current State

3 Page: W1. Context W1.1 Please rate the importance (current and future) of water quality and water quantity to the success of your organization Water quality and quantity Direct use importance rating Indirect use importance rating Sufficient amounts of good quality freshwater available for use Sufficient amounts of recycled, brackish and/or produced water available for use Important Not important at all Important Not important at all Direct: * Use in production of certain seeds and flowers: important * Use in sites manufacturing crop protection products: not as important as water is mainly used for cleaning or cooling. Indirect: * Important for the contracted field production of seeds (i.e. seed supply farms). No or very limited use of recycled, brackish and/or produced water. W1.2 For your total operations, please detail which of the following water aspects are regularly measured and monitored and provide an explanation as to why or why not Water aspect % of sites/facilities/operations Water withdrawals- total volumes Water withdrawals- volume by sources Sites must report every year the water withdrawals Sites must report every year the water withdrawals

4 Water aspect % of sites/facilities/operations Water discharges- total volumes Water discharges- volume by destination Water discharges- volume by treatment method Water discharge quality data- quality by standard effluent parameters Water consumption- total volume Facilities providing fullyfunctioning WASH services for all workers Large sites must report every year their water discharge. For many sites water discharge is done through municipal sewer systems, precise measurement is not possible. Large sites must report every year their water discharge. For many sites water discharge is done through municipal sewer systems, precise measurement is not possible. Large sites must report every year their water discharge. For many sites water discharge is done through municipal sewer systems, precise measurement is not possible. Large sites with specific Wastewater Treatment Plants control quality by standard effluent parameters. This covers more than 90% of industrial water. For many site water discharge is done through municipal sewer systems, precise measurement of quality by standard effluent parameters is not possible and quantity is not significant Sites must report every year the detailed water consumption This is part of Syngenta HSE policy W1.2a Water withdrawals: for the reporting year, please provide total water withdrawal data by source, across your operations Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Comment Fresh surface water Lower Due to reduced activity Brackish surface water/seawater 40 Much lower Reduced activity in the site using brackish surface water Rainwater 100 About the same Groundwater - renewable 7800 About the same

5 Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Comment Groundwater - non-renewable 0 Not applicable Produced/process water 0 Not applicable No water produced by processes Municipal supply 2700 Lower Due to reduced activity Wastewater from another organization 0 Not applicable Total Lower Lower due to the points mentioned in the individual entries above. W1.2b Water discharges: for the reporting year, please provide total water discharge data by destination, across your operations Destination Quantity (megaliters/year) How does total water discharged to this destination compare to the last reporting year? Comment Fresh surface water Lower Industrial wastewater treatment plant was reported last year with Fresh surface water Brackish surface water/seawater 300 Much lower Due to reduced activity of the site discharging in brackish water Groundwater 0 Not applicable Municipal/industrial wastewater New definition Industrial wastewater treatment plant was 7900 Much higher treatment plant reported last year with Fresh surface water Wastewater for another organization 0 Not applicable Total About the same

6 W1.2c Water consumption: for the reporting year, please provide total water consumption data, across your operations Consumption (megaliters/year) How does this consumption figure compare to the last reporting year? Comment Lower Due to reduced activity W1.3 Do you request your suppliers to report on their water use, risks and/or management? No W1.3a Please provide the proportion of suppliers you request to report on their water use, risks and/or management and the proportion of your procurement spend this represents Proportion of suppliers % Total procurement spend % Rationale for this coverage W1.3b Please choose the option that best explains why you do not request your suppliers to report on their water use, risks and/or management

7 Primary reason Other: Different approach to assess water issues at suppliers Suppliers don t report water information to us. We assess the water use, risk and management at suppliers using a different approach. Key chemical suppliers undergo HSE audits, which include assessing water issues. Seed suppliers are located near our seed processing sites and thus were indirectly as part of the facility level Water Scarcity Strategic Risk Review of In 2015, we also conducted a third-party analysis of our water footprint across our seed production supply chain. The analysis calculated the water footprint of field operations for six types of crops in various geographies. The results can be used to better understand water use and hotspots in the seed supply chain and the significance of geographies. Water risks in the supply chain are also part of the group risk management processes. W1.4 Has your organization experienced any detrimental impacts related to water in the reporting year? Yes W1.4a Please describe the detrimental impacts experienced by your organization related to water in the reporting year Country River basin Impact indicator Impact Description of impact Length of impact Overall financial impact Response strategy Description of response strategy Brazil Not known Phys- Drought Reduction in revenue In Latin America, sugar cane sales in 2015 were Summer period in Latin Sales of crop protection products for sugar cane decreased due to drought Other: Research and development In future years, climate change may have both positive and negative impacts on Syngenta s results.

8 Country River basin Impact indicator Impact Description of impact Length of impact Overall financial impact Response strategy Description of response strategy Thailand Not known Phys- Drought Reduction in revenue adversely impacted by drought conditions In ASEAN, 2015 was adversely impacted by drought conditions. America 2015 during the summer and to lower ethanol prices affecting the profitability of sugar cane mills. Sales in Asia Pacific were 10 percent lower, 3 percent at constant exchange rates, with broad based local currency sales price increases more than Other: Research and Development Climate change may make growing certain crops more or less viable in different geographic areas, but is not likely to reduce overall demand for food and feed. Syngenta currently sells and is developing products to improve the water productivity of plants and increase tolerance to drought and heat. In 2013, Syngenta announced plans to invest approximately $90 million by the end of 2018 on the expansion of its research and development operations on Syngenta s existing research campus in Research Triangle Park, North Carolina, USA, including further capacity expansion, and upgraded laboratory and other facilities. Research at the expanded site will focus on traits that can better tolerate climate variability, combat plant stresses such as drought, and enhance crop productivity and plant performance. In addition to the current focus on corn and soybean, research will be expanded to incorporate other crops such as cereals, rice, vegetables and sugar cane. Spending on the project in 2015 was approximately $30 million. In future years, climate change may have both positive and negative impacts on Syngenta s results. Climate change may make growing certain crops more or less viable in different geographic areas, but is not

9 Country River basin Impact indicator Impact Description of impact Length of impact Overall financial impact Response strategy Description of response strategy offset by lower volumes from the phase-out of paraquat sales in China due to a regulatory change and drought conditions in ASEAN. likely to reduce overall demand for food and feed. Syngenta currently sells and is developing products to improve the water productivity of plants and increase tolerance to drought and heat. In 2013, Syngenta announced plans to invest approximately $90 million by the end of 2018 on the expansion of its research and development operations on Syngenta s existing research campus in Research Triangle Park, North Carolina, USA, including further capacity expansion, and upgraded laboratory and other facilities. Research at the expanded site will focus on traits that can better tolerate climate variability, combat plant stresses such as drought, and enhance crop productivity and plant performance. In addition to the current focus on corn and soybean, research will be expanded to incorporate other crops such as cereals, rice, vegetables and sugar cane. Spending on the project in 2015 was approximately $30 million. W1.4b Please choose the option below that best explains why you do not know if your organization experienced any detrimental impacts related to water in the reporting year and any plans you have to investigate this in the future

10 Primary reason Future plans Further Information Module: Risk Assessment Page: W2. Procedures and Requirements W2.1 Does your organization undertake a water-related risk assessment? Water risks are assessed W2.2 Please select the options that best describe your procedures with regard to assessing water risks Risk assessment procedure Coverage Scale Comprehensive company-wide risk assessment Direct operations and supply chain Some facilities and some suppliers Water is part of our risk management process. Our risk management strategy, set by the Compliance and Risk Management Committee, defines our overall approach to managing risks. It has 5 steps: 1.Setting risk strategy: defining governance and processes to manage risks 2.Identifying risks: finding, recognizing and describing risk 3.Assessing risks: obtaining a deeper understanding of risks by analyzing causes, consequences, likelihood and potential impact 4.Treating risks: considering activities that influence the likelihood and/or impact of a risk to terminate, reduce, accept or pass-on 5.Monitoring risks: reviewing risks on a regular basis to

11 Risk assessment procedure Coverage Scale evaluate whether the treatments have influenced the likelihood and/or impact as intended. In addition to specialized risk management programs (e.g. HSE), we also encourage all employees to observe and communicate risks. In 2013, we also conducted a Water Scarcity Strategic Risk Review to identify our vulnerability to water risks at site level. In 2015, we commissioned a major third-party analysis of our water footprint across our seed production supply chain. W2.3 Please state how frequently you undertake water risk assessments, what geographical scale and how far into the future you consider risks for each assessment Frequency Geographic scale How far into the future are risks considered? Comment Six-monthly or more frequently Sporadically not defined Country Facility >6 years 3 to 6 years The time of the analysis is 10 years as it is aligned with our long term business strategy. This is also reflected in our Good Growth Plan ( in which we commit to make crops 20% more efficient also by 2020 without using more land, water or inputs. Note: our risk analyses is conducted a territory level (which is an intermediate level between country and region) In 2013, we conducted a Water Scarcity Strategic Risk Review to identify our vulnerability to water-risks at site level. We assessed current and future water availability/scarcity, flood risks and political risk due to water competition to determine current risks and long term availability of water to support the site. In 2015, we conducted a third-party analysis of our water footprint across our seed production supply chain. W2.4 Have you evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy?

12 Yes, evaluated over the next 1 year W2.4a how your organization evaluated the effects of water risks on the success (viability, constraints) of your organization's growth strategy? Water availability is important for Syngenta s growth, especially for the development of our product portfolio. Changes in water availability (triggered by climate change) directly affect agriculture in terms of growing seasons, pests and crop productivity, and as a result altering demand for our products. We use science to transform the way crops are grown to improve yields in a sustainable way and help overcome increasing pressure on limited resources such as water. Our R&D focuses on innovation to increase yields, quality, protect plants and improve resource efficiency in the field R&D focuses on addressing the farmer s key needs: * Abiotic stress such as drought, reduced nutrients and irregular temperatures * Biotic stress from weeds, pests and diseases * Meeting demands from customers and consumers for improved nutritional composition, consumer appeal, shelf life and processing ease Water is also part of our risk management process. We assess environmental aspects, such as adverse weather, climate and geographical conditions, natural hazards and environmental damages and liabilities. These are considered at a Group level for strategic business decisions, and are also as part of local risk management processes. Weather variability (incl. water) is assessed both for own operations and value chain (i.e. supply chain and downstream impact on products/services). In 2013, we also conducted a Water Scarcity Strategic Risk Review to identify our vulnerability to water-risks at site level. Among others, aspects assessed current and future water availability/scarcity, flood risks and political risk due to water competition. In 2015, we commissioned a major third-party analysis of our water footprint across our seed production supply chain. We also carry HSE assessments at our own sites and suppliers, which include the assessment of the facility s approach to water management..in 2015, we joined the Together for Sustainability initiative. This brings together international chemical companies to share joint supplier audits in line with the principles of the UNGC.. Also our Community Engagement Policy guides our engagement activities at site level. We encourage open two way communication to identify concerns from the community including those related to water. W2.4b

13 What is the main reason for not having evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy, and are there any plans in place to do so in the future? Main reason Current plans Timeframe until evaluation Comment W2.5 Please state the methods used to assess water risks Method how these methods are used in your risk assessment CEO Water Mandate's 'Understanding Key Water Stewardship Terms' FAO/AQUASTAT Other: Internal company knowledge * WBCSD Water Tool: used to do a preliminary risk assessment (level of risk vs level of consumption) and identify priority sites. This was part of the "Water Scarcity Strategic Risk Review done in 2013 * FAO/AQUASTAT: Comment: In 2015, we commissioned a third-party analysis of our water footprint across our seed production supply chain. The approach used is consistent with the WBCSD Water Tool and based on FAO data. The analysis calculated the water footprint of field operations for six types of crops in various geographies. The results can be used to better understand water use and hotspots in the seed supply chain and the significance of geographies. * Internal company knowledge: We include environmental and social aspects in our risk management processes, including adverse weather, climate and geographical conditions as well as natural hazards. These are considered at a Group level for strategic business decisions, and are also as part of local risk management processes. We use a Risk Management Information System to track monitor the 5 stages in which manage risks: setting risk strategy and identifying, assessing, treating and monitoring risks. We encourage employees to observe and communicate risk, opportunities and ideas to the Compliance and Risk Management Committee. In addition to specialized risk management programs (e.g. HSE), management teams in the different businesses (e.g. production and supply, R&D) also identify risks and opportunities associated with climate change. W2.6 Which of the following contextual issues are always factored into your organization's water risk assessments?

14 Issues Choose option Current water availability and quality parameters at a local level Current water regulatory frameworks and tariffs at a local level Current stakeholder conflicts concerning water resources at a local level Current implications of water on your key commodities/raw materials Current status of ecosystems and habitats at a local level Current river basin management plans Current access to fully-functioning WASH services for all employees Estimates of future changes in water availability at a local level Estimates of future potential regulatory changes at a local level Estimates of future potential stakeholder conflicts at a local level Relevant and for some facilities/suppliers in our ongoing group risk management processes and in the Water Scarcity Strategic Risk Review conducted in 2013 and in the third party footprint analysis conducted in For our own facilities, this is also monitored by the site. For key chemical suppliers, this is also checked during the HSE audits. Relevant mainly for daily operations at our sites and field production (seed suppliers) activities. Relevant and for some facilities/suppliers in our ongoing group risk management processes and in the Water Scarcity Strategic Risk Review conducted in For our own facilities, this is also monitored by the site. Relevant to ensure continuity in operations. Relevant and for some facilities/suppliers in our ongoing group risk management processes and in the Water Scarcity Strategic Risk Review conducted in For our own facilities, this is also monitored by the site. It is also part of our community engagement activities. Our Community Engagement Policy encourages open discussion on issues of concern of local communities. Relevant to maintain our license to operate. Relevant and for some facilities/suppliers in our ongoing group risk management processes. Relevant to source key supplies (both chemical and seeds) to maintain operations and grow our business. In 2015, we commissioned a third-party analysis of our water footprint across our seed production supply chain. The results can be used to better understand water use and hotspots in the seed supply chain and the significance of geographies. Relevant and for some facilities/suppliers in our ongoing group risk management processes, and in the Water Scarcity Strategic Risk Review conducted in For our own facilities, this is also monitored by the site. Relevant to maintain our license to operate. Relevant and for some facilities/suppliers in our ongoing group risk management processes and in the Water Scarcity Strategic Risk Review conducted in Relevant mainly for operations at our sites. This is checked during our HSE assessments. Relevant to ensure the health and safety of employees on those working on behalf of Syngenta. Relevant and mainly for key facilities in the Water Scarcity Strategic Risk Review conducted in This is also monitored by the site. Relevant mainly for daily operations at our sites and field production (seed suppliers) activities. Relevant and mainly for key facilities in the Water Scarcity Strategic Risk Review conducted in This is also monitored by the site. Relevant to maintain our license to operate. Relevant and mainly for key facilities in the Water Scarcity Strategic Risk Review conducted in This is also monitored by the site and part of the Community Engagement activities. Relevant to maintain our license to operate.

15 Issues Choose option Estimates of future implications of water on your key commodities/raw materials Estimates of future potential changes in the status of ecosystems and habitats at a local level Scenario analysis of availability of sufficient quantity and quality of water relevant for your operations at a local level Scenario analysis of regulatory and/or tariff changes at a local level Scenario analysis of stakeholder conflicts concerning water resources at a local level Scenario analysis of implications of water on your key commodities/raw materials Scenario analysis of potential changes in the status of ecosystems and habitats at a local level Other Relevant and for some facilities/suppliers in our ongoing group risk management processes. In 2015, we commissioned a third-party analysis of our water footprint across our seed production supply chain. The results can be used to better understand water use and hotspots in the seed supply chain and the significance of geographies. Relevant and for some facilities/suppliers in our ongoing group risk management processes, in the Water Scarcity Strategic Risk Review conducted in For our own facilities, this is also monitored by the site and impact assessments were conducted. Relevant to maintain our license to operate. Relevant and mainly for key facilities in the Water Scarcity Strategic Risk Review conducted in Relevant mainly for daily operations at our sites and field production (seed suppliers) activities. Relevant and mainly for key facilities in the Water Scarcity Strategic Risk Review conducted in Relevant to ensure continuity in operations. Relevant and mainly for key facilities in the Water Scarcity Strategic Risk Review conducted in Relevant to maintain our license to operate. Relevant and mainly for key facilities in the Water Scarcity Strategic Risk Review conducted in Relevant to source key supplies (both chemical and seeds) to maintain operations and grow our business. Relevant and mainly for key facilities in the Water Scarcity Strategic Risk Review conducted in Relevant to maintain our license to operate. W2.7 Which of the following stakeholders are always factored into your organization's water risk assessments?

16 Stakeholder Choose option Customers Employees Investors Local communities NGOs Other water users at a local level Regulators River basin management authorities Statutory special interest groups at a local level Suppliers Water utilities/suppliers at a local level Other Relevant and in our ongoing group risk management processes. Relevant to know and address the need of farmers. Water availability is important for agriculture and for Syngenta s growth. In 2015, we commissioned a thirdparty analysis of our water footprint across our seed production supply chain. The results can be used to better understand water use and hotspots in seed production. Relevant and in our ongoing group risk management processes and for some facilities/suppliers in the Water Scarcity Strategic Risk Review conducted in Water quality is relevant in terms of H&S of our employees. Relevant and in our ongoing group risk management processes. Relevant because investors have an important stake in our company and to support them to make informed investment decisions. Relevant and for some facilities/suppliers in our ongoing group risk management processes and in the Water Scarcity Strategic Risk Review conducted in Our Community Engagement Policy encourages open discussion on issues of concern of local communities. Relevant to maintain our license to operate with local communities. Relevant and for some facilities/suppliers in our ongoing group risk management processes. Relevant to maintain our license to operate and continuity of operations. Relevant and for some facilities/suppliers in our ongoing group risk management processes, in the Water Scarcity Strategic Risk Review conducted in Relevant to ensure water availability and continuity of operations. Relevant and for some facilities/suppliers in our ongoing group risk management processes, in the Water Scarcity Strategic Risk Review conducted in For our own facilities, this is also monitored by the site. Relevant to ensure continuity in operations. Relevant and for some facilities/suppliers in our ongoing group risk management processes. Relevant and assessed at site level by some sites based on location and size. Relevant to maintain our license to operate. Relevant and for some facilities/suppliers in the Water Scarcity Strategic Risk Review conducted in Relevant to maintain our license to operate. Relevant and for some facilities/suppliers in our ongoing group risk management processes. Relevant to source key supplies (both chemical and seeds) to maintain operations and grow our business. In 2015, we commissioned a third-party analysis of our water footprint across our seed production supply chain. The results can be used to better understand water use and hotspots in the seed supply chain and the significance of geographies. Relevant and for some facilities/suppliers in our ongoing group risk management processes, in the Water Scarcity Strategic Risk Review conducted in Relevant to ensure water availability and continuity of operations. W2.8 Please choose the option that best explains why your organisation does not undertake a water-related risk assessment

17 Primary reason Further Information Module: Implications Page: W3. Water Risks W3.1 Is your organization exposed to water risks, either current and/or future, that could generate a substantive change in your business, operations, revenue or expenditure? No W3.2 Please provide details as to how your organization defines substantive change in your business, operations, revenue or expenditure from water risk Although some water risks could exist at site level (i.e. own operations) or in the supply chain, the largest potential impact would be downstream on our value chain. Changes in water availability directly affect agriculture in terms of growing seasons, pests and crop productivity, and thus the demand for our products. As a result water risks mainly impact our sales at territory/country level and the overall risk for the global business will be mitigated by geographical differences. For example: * The USA experienced an exception drought in the seed growing season of 2012, which had an impact on our sales, cost of goods sold and inventory provisions in the region in 2013, 2014 and * In Latin America, 2014 and 2015 sales of crop protection products for sugar cane decreased due to drought during the summer. * In Canada, 2014 sales decreased as cereals acreage was lower and demand was further affected by flooding.

18 Substantive change is measured against the impact it will have on the forecasted sales for a territory/country. W3.2a Please provide the number of facilities* per river basin exposed to water risks that could generate a substantive change in your business, operations, revenue or expenditure and the proportion this represents of total operations company-wide Country River basin Number of facilities exposed to water risk Proportion of total operations (%) Comment W3.2b Please provide the proportion of financial value that could be affected at river basin level associated with the facilities listed in W3.2a Country River basin Financial reporting metric Proportion of chosen metric that could be affected within the river basin Comment W3.2c Please list the inherent water risks that could generate a substantive change in your business, operations, revenue or expenditure, the potential impact to your direct operations and the strategies to mitigate them

19 Country River basin Risk driver Potential impact Description of impact Timeframe Likelihood Magnitude of potential financial impact Response strategy Costs of response strategy Details of strategy and costs W3.2d Please list the inherent water risks that could generate a substantive change in your business operations, revenue or expenditure, the potential impact to your supply chain and the strategies to mitigate them Country River basin Risk driver Potential impact Description of impact Timeframe Likelihood Magnitude of potential financial impact Response strategy Costs of response strategy Details of strategy and costs W3.2e Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your direct operations that could generate a substantive change in your business, operations, revenue or expenditure Primary reason Risks exist, but no substantive impact anticipated Based on our risk assessments, our company's water risk exposure is not material. Water is part of our risk management process. Environmental aspects are considered at a Group level for strategic business decisions and are also as part of local risk management processes. In 2013, we also conducted a Water Scarcity Strategic Risk Review, which identified the exposure as not substantive. As mentioned in 3.2: although some water risks could exist at site level (i.e. own operations), the largest potential impact

20 Primary reason would be downstream on our value chain. Changes in water availability directly affect agriculture in terms of growing seasons, pests and crop productivity, and thus the demand for our products. W3.2f Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your supply chain that could generate a substantive change in your business, operations, revenue or expenditure Primary reason Risks exist, but no substantive impact anticipated Water risk in the supply chain is managed the same way than water risk in direct operations. Based on our risk assessments, our company's water risk exposure is not material. As mentioned in 3.2: although some water risks could exist at site level (i.e. own operations), the largest potential impact would be downstream on our value chain. Changes in water availability directly affect agriculture in terms of growing seasons, pests and crop productivity, and thus the demand for our products. W3.2g Please choose the option that best explains why you do not know if your organization is exposed to water risks that could generate a substantive change in your business operations, revenue or expenditure and discuss any future plans you have to assess this Primary reason Future plans Further Information

21 Page: W4. Water Opportunities W4.1 Does water present strategic, operational or market opportunities that substantively benefit/have the potential to benefit your organization? Yes W4.1a Please describe the opportunities water presents to your organization and your strategies to realize them Country or region Opportunity Strategy to realize opportunity Estimated timeframe Companywide Companywide Climate change adaptation Innovation Sales of new products/services Climate change adaptation Increased brand value Improved water efficiency Syngenta has products available and in the pipeline that help plants tolerate drought, enabling farmers to produce high yields even in dry conditions. These include crop protection and seed treatment products, hybrid and GM seeds, growth regulators and best management practices. See examples on please explain column. Syngenta s investment on R&D was 1.36$billion in 2015, representing 10% of our 2015 sales. We aim to improve customer satisfaction through our Integrated Crop Solutions. Farmers must have the skills and tools to prosper. To achieve the best yields under their specific conditions, farmers must use high quality seeds, water efficient technologies, nutrients, insect and weed management and soil conservation. Current-up to 1 year Current-up to 1 year * Our crop protection products conserve water by controlling weeds that threaten scarce water resources * We develop crops that tolerate drier conditions, including drought-tolerant sunflower and corn (e.g. the introduction of Agrisure Artesian in corn delivers improved yields on dryland and in land with limitedirrigation or prone to drought stress * Our seed treatment products help plants to develop stronger root systems to access water/nutrients in soil * Plant regulator products prevent plants to grow too tall and collapse. They promote longer, finer roots that better reach water/nutrients in drought-prone areas * In India, we have established a crop health center, which provides agronomy advice and resources to farmers. The program provides crop diagnostics, soil testing, library, training and education, demonstration plots and interactions with scientists. Thus, farmers use Syngenta products and have increased yields. * The

22 Country or region Opportunity Strategy to realize opportunity Estimated timeframe Our training and advice programs enable them to boost yields sustainably, improve quality of produce and enhance their livelihoods. See examples on please explain column. PaniPipe, which is inserted into the ground, allows farmers to monitor water level below ground, decreasing the need to flood rice. This led to 30% water savings. W4.1b Please choose the option that best explains why water does not present your organization with any opportunities that have the potential to provide substantive benefit Primary reason W4.1c Please choose the option that best explains why you do not know if water presents your organization with any opportunities that have the potential to provide substantive benefit Primary reason Further Information

23 Module: Accounting Page: W5. Facility Level Water Accounting (I) W5.1 Water withdrawals: for the reporting year, please complete the table below with water accounting data for all facilities in your answer to W3.2a Facility reference number Country River basin Facility name Total water withdrawals (megaliters/year) at this facility How does the total water withdrawals at this facility compare to the last reporting year? Further Information Page: W5. Facility Level Water Accounting (II) W5.1a Water withdrawals: for the reporting year, please provide withdrawal data, in megaliters per year, for the water sources used for all facilities reported in W5.1 Facility reference number Fresh surface water Brackish surface water/seawater Rainwater Groundwater (renewable) Groundwater (nonrenewable) Produced/process water Municipal water Wastewater from another organization Comment

24 W5.2 Water discharge: for the reporting year, please complete the table below with water accounting data for all facilities in your answer to W3.2a Facility reference number Total water discharged (megaliters/year) at this facility How does the total water discharged at this facility compare to the last reporting year? W5.2a Water discharge: for the reporting year, please provide water discharge data, in megaliters per year, by destination for all facilities reported in W5.2 Facility reference number Fresh surface water Municipal/industrial wastewater treatment plant Seawater Groundwater Wastewater for another organization Comment W5.3 Water consumption: for the reporting year, please provide water consumption data for all facilities reported in W3.2a Facility reference number Consumption (megaliters/year) How does this compare to the last reporting year?

25 W5.4 For all facilities reported in W3.2a what proportion of their water accounting data has been externally verified? Water aspect % verification What standard and methodology was used? Further Information Module: Response Page: W6. Governance and Strategy W6.1 Who has the highest level of direct responsibility for water within your organization and how frequently are they briefed? Highest level of direct responsibility for water issues Frequency of briefings on water issues Comment Board of individuals/sub-set of the Board or other committee appointed by the Board Other: Twice a year for CRC, and quarterly for CRMC * Board level: the Corporate Responsibility Committee (CRC) acts as custodian of the Board in all Corporate Responsibility (CR) matters (including water); reviews CR actions proposed by the Executive Committee; and monitors the effectiveness of the implementation of CR policies. * Executive level: the Syngenta Executive Committtee and the Compliance and Risk Management Committee (CRMC) advise on CR priorities, reporting and the effectiveness of implementation of internal policies. W6.2

26 Is water management integrated into your business strategy? Yes W6.2a Please choose the option(s) below that best explain how water has positively influenced your business strategy Influence of water on business strategy Establishment of sustainability goals Water resource considerations are factored into new product development Our The Good Growth Plan reflects our belief that agricultural productivity must increase in order to feed a global population. It includes six specific commitments to address critical challenges, including that of water resources being under increasing pressure. In particular, by 2020, we commit to make crops more efficient - Increase average productivity of the world's major crops by 20% without using more land, water or inputs. In anticipation of changing weather patterns and potential shortages of water, we have made water efficiency a key strategic ambition shaping our product range. For example, the introduction of Agrisure Artesian in corn delivers improved yields on dryland and in land with limited-irrigation or prone to drought stress. We also established partnerships with NGOs and universities, such CIMMYT and IRRI to advance the development of cereals that better adapt to drought, heat and cold. W6.2b Please choose the option(s) below that best explains how water has negatively influenced your business strategy

27 Influence of water on business strategy No measurable influence Syngenta s ambition is to bring greater food security in an environmentally sustainable to an increasingly populous world. We provide solutions to growers to help them use water in agriculture more efficiently and wisely. We invest in research, development and commercialization of these solutions. Water has not negatively influenced our business strategy. W6.2c Please choose the option that best explains why your organization does not integrate water management into its business strategy and discuss any future plans to do so Primary reason W6.3 Does your organization have a water policy that sets out clear goals and guidelines for action? Yes W6.3a Please select the content that best describes your water policy (tick all that apply)

28 Content why this content is Publicly available Company-wide Performance standards for direct operations Commitment to customer education Incorporated within group environmental, sustainabiilty or EHS policy In our Good Growth Plan, we have committed to increase the average productivity of the world's major crops by 20% by 2020 without using more land, water or inputs. This includes customer/grower education. In our Annual Report 2015, we announced how we plan to make our operations more sustainable, including actions to reduce water use. Our Code of Conduct states our commitment to protect the environment and to ensure the health and safety of our employees and others potentially affected by our activities. Our HSE Policy and Standards states that actively promoting environmental protection is an integral part of how Syngenta conducts its business. This includes promoting water conservation. Our commitments, progress information and assured performance figures are publicly available on and W6.4 How does your organization's water-related capital expenditure (CAPEX) and operating expenditure (OPEX) during the most recent reporting year compare to the previous reporting year? Water CAPEX (+/- % change) Water OPEX (+/- % change) Motivation for these changes Please note: These spending activities are in day-to-day operations (e.g. R&D activities to develop new products including supporting more efficient use of water; projects to make manufacturing processes more efficiency including water use) and thus cannot be reported separately. Further Information Page: W7. Compliance

29 W7.1 Was your organization subject to any penalties, fines and/or enforcement orders for breaches of abstraction licenses, discharge consents or other water and wastewater related regulations in the reporting year? Yes, not significant W7.1a Please describe the penalties, fines and/or enforcement orders for breaches of abstraction licenses, discharge consents or other water and wastewater related regulations and your plans for resolving them Facility name Incident Incident description Frequency of occurrence in reporting year Financial impact Currency Incident resolution Salinas, PR Fine Well water abstraction monitored monthly instead of daily USD($) Monitoring procedure updated W7.1b What proportion of your total facilities/operations are associated with the incidents listed in W7.1a 0.01% W7.1c

30 Please indicate the total financial impacts of all incidents reported in W7.1a as a proportion of total operating expenditure (OPEX) for the reporting year. Please also provide a comparison of this proportion compared to the previous reporting year Impact as % of OPEX Comparison to last year 0 No change Further Information Page: W8. Targets and Initiatives W8.1 Do you have any company wide targets (quantitative) or goals (qualitative) related to water? Yes, goals only W8.1a Please complete the following table with information on company wide quantitative targets (ongoing or reached completion during the reporting period) and an indication of progress made Category of target Motivation Description of target Quantitative unit of measurement Base-line year Target year Proportion of target achieved, % value

31 W8.1b Please describe any company wide qualitative goals (ongoing or reached completion during the reporting period) and your progress in achieving these Goal Motivation Description of goal Progress Sustainable agriculture Engagement with suppliers to help them improve water stewardship Other: The Good Growth Plan which is part of our business strategy Water stewardship "The Good Growth Plan reflects our belief that agricultural productivity must increase in order to feed a global population. It includes six specific commitments to address critical challenges, including that of water resources being under increasing pressure. In our first commitment, we commit to make crops more efficient by Increase average productivity of the world's major crops by 20% without using more land, water or inputs. For more information visit: By 2016, we want to establish a water footprint for the seed supply business. Seed supply is our principal water-using activity, so we are including it in our data collection process and will cover water types and usage patterns. We are on track to achieve the goal. On the second year, we have achieved global average productivity increase of 2% compared to the 2014 baseline. This goal was established in Work is ongoing. W8.1c why you do not have any water-related targets or goals and discuss any plans to develop these in the future Further Information Module: Linkages/Tradeoff Page: W9. Managing trade-offs between water and other environmental issues W9.1

32 Has your organization identified any linkages or trade-offs between water and other environmental issues in its value chain? Yes W9.1a Please describe the linkages or trade-offs and the related management policy or action Environmental issues Policy or action Many of our sites require cooling during the manufacturing process. This is mainly done through cooling water. Climate change and associated droughts or floods may make growing certain crops more or less viable in different geographic areas. Agriculture uses about 70% of the world s fresh water and shortage will have a huge impact on food security. Up to 40% of the water used by some farmers is lost due to inefficient practices such as field flooding. Sources: 1) FAO Aquastat, 2005, World Resource and Earthscan Water Linkage or tradeoff Tradeoff Linkage Linkage In 2015, 59% of our total water usage at our sites was used for cooling. The use of water for cooling (which is renewable energy) replaces conventional energy sources and reduces carbon emissions. In 2015, about 99% of the cooling water used could be released as uncontaminated water back into river and lakes. Syngenta currently sells and is developing products to improve the water productivity of plants and increase tolerance to drought and heat. For example, in Hungary, the combination of record-setting rains and severe droughts had growers looking for ways to protect their soil: too much rain can wash it away too little can dry it out making it more susceptible to erosion. E.g. Our CONTIVO system helps growers in Hungary to adopt conservation tillage techniques that leave at least 30 percent of the previous year s crop remnants on the surface of the soil before planting. It combines proven conservation tillage practices with innovative seeds technology, suitable equipment and appropriate use of fertilizer together with crop protection protocols to protect soil health while still maintaining high yields. A recent study by the 2030 Water Resources Group found that existing agricultural technology can sustainably increase water use efficiency, at reasonable cost and with little investment. For example, improving soil structure can conserve water. Weed control using herbicides lowers the

33 Environmental issues Linkage or tradeoff Policy or action for food, water for life Institute; and 2) 2030 Water Resources Group, Charting our Water Future, Economic framework to inform decisionmaking; Dec 2009 need for tillage, leaves roots in the soil and improves water absorption. Efficient irrigation systems deliver water to roots and planting grasses or wild flowers around fields helps keep water in the soil. In combination, these practices dramatically reduce surface evaporation and water runoff. Stopping run-off has an added benefit: agricultural chemicals and soil from fields don t reach rivers and streams. In addition, we need to broaden our focus to include land productivity and water productivity. We have to get the highest yield out of every drop. Drought-tolerant seeds can help produce reliable yields even when water is scarce. At Syngenta we re partnering with growers and organizations around the world to research and promote innovative solutions for soil conservation and water protection. Further Information Module: Sign Off Page: Sign Off W10.1 Please provide the following information for the person that has signed off (approved) your CDP water response Name Job title Corresponding job category J. Erik Fyrwald CEO Chief Executive Officer (CEO)

34 W10.2 Please select if your organization would like CDP to transfer your publicly disclosed response strategy from questions W1.4a, W3.2c and W3.2d to the CEO Water Mandate Water Action Hub. Yes Further Information CDP 2016 Water 2016 Information Request