ADM Commitment to No Deforestation, No Peat and No Exploitation

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1 ADM Commitment to No Deforestation, No Peat and No Exploitation Policy Implementation Q Palm Oil Progress Report In Partnership with The Forest Trust 1

2 Introduction ADM committed to our No Deforestation, No Peat, and No Exploitation (No DPE) policy in our soy and palm oil supply chains in March We have been working with The Forest Trust (TFT) since May 2015 to implement this commitment throughout our palm oil supply chain, and build traceable and transparent agricultural supply chains. ADM is working to identify its direct suppliers in order to determine if they share our No DPE values. By identifying and procuring from suppliers with shared values, ADM is participating in the transformation of the palm oil supply chain. Of course, ADM cannot transform the industry alone, and we encourage others in the palm oil supply chain to employ No DPE values and practices. ADM began publishing mill traceability scores for palm oil and palm kernel oil for all ADM facilities processing palm oil products in Q We have identified all ADM facilities using or trading palm oil globally. As ADM makes progress throughout the year, the amount of information within each category of this report may vary commensurate with the progress for that quarter. Activities this Quarter: Actions taken this quarter will be reported under the following categories: Transparency and Accountability disclosure of activities related to No Deforestation. Traceability traceability scores. Transformation supplier engagement in support of No Deforestation. Monitoring and Verification monitoring of issues within the supply chain and identification and application of available technology to verify compliance within the supply chain. Topics of Interest other relevant activities in support of No Deforestation within the industry. Transparency and Accountability Global Palm Oil Supply Chain As an important element of the transformation philosophy, ADM is engaging its direct suppliers to adopt No DPE principles. The work to engage our suppliers on No DPE issues is ongoing. A detailed mill list can be found on the ADM Progress Tracker webpage. In addition, we have made progress on the procedures and workflows necessary to properly track and address palm oil supply chain issues that stakeholders may share with us at responsibility@adm.com. The forthcoming ADM Issues and 2

3 Resolutions public web page will provide information related to stakeholder inquiries. The Issues and Resolutions page will allow stakeholders to monitor No DPE issues and the outcomes of subsequent actions taken to address these inquiries. It is anticipated that internal procedures will be completed by EOY The public-facing Issues and Resolutions page should be operational in early Q ADM is willing to work with non-compliant suppliers if they show progress in adopting No DPE principles. However, ADM is also willing to remove suppliers who do not make progress in adopting No DPE principles and practices. In order to be transparent, the hosts the most current and verified information available in the form of traceability tables, mill lists, progress reports, action plans, and the forthcoming Issues and Resolutions webpage. Traceability Global traceability-to-mill scores for Q Q for Palm Oil (PO) and Palm Kernel Oil (PKO) are as follows (4 quarter rolling average): 3

4 Transformation ADM s Smallholder Palm Oil Plantation Project in Pará, Brazil ADM has a small palm oil project to improve the lives of smallholders in the state of Pará, Brazil. Working with the TFT, we are preparing for a Q field assessment, and investigating practical and viable solutions to improve sanitation and water conditions for the properties owned by the smallholders. 4

5 We are in the process of pursuing Roundtable for Sustainable Palm Oil (RSPO) Smallholder Certification. ADM has submitted its Disclosure Statement of 2012 Plantations to the RSPO organization and we have received our initial feedback. Generally, these disclosures are made to the RSPO ahead of a High Conservation Value/Social Impact Assessment (HCV/SIA). In addition, ADM s smallholders have completed registration with CAR (Brazil s Rural Environmental Land Registry). Monitoring and Verification ADM continues to engage with NGOs and other stakeholders to understand and collaborate on issues related to palm oil production in the Asia/Pacific area. Topics of Interest In addition to the activities within our palm oil Action Plan, the following bullets reveal actions and industry engagement that is supportive of No DPE efforts within the industry: ADM participated in the LATAM RSPO Congress held in Guatemala in August. ADM participated in the Decent Labor Conditions for Palm Growers Workshop held in Belem do Para and sponsored by ABRAPALMA (Brazilian Palm Association). Conclusion In summary, ADM has implemented a system for calculating traceability-to-mill scores for our global palm oil facilities. We have created the ADM Sustainability Progress Tracker to showcase our No DPE work and remain transparent with our stakeholders. And we continue to engage our suppliers in an effort to transform our supply chain. We welcome feedback and comments from our interested readers at responsibility@adm.com. 5