European overview: Certified Palm market. Marie Lavialle-Piot Tropical Oil Sustainability Lead, Cargill

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1 European overview: Certified Palm market Marie Lavialle-Piot Tropical Oil Sustainability Lead, Cargill

2 Our foundation

3 Operating a global supply chain Refining plants Mills Plantations

4 Our commitments No Deforestation No Exploitation of High Conservation value or High Carbon stock areas No Development on peat regardless of depth of rights of indigenous people and local communities Inclusion of smallholders into sustainable palm supply chain 100% TRACEABLE, TRANSPARENT & SUSTAINABLE PALM SUPPLY CHAINS BY 2020 Global Palm Sustainability update

5 Our 2020 Goals Traceability All palm oil volumes we produce, trade (ship & physically handle) and process will be traceable to sustainable mill and plantation level by 2020 Supplier Engagement HCS, HCV and peat areas are conserved, and land, labor and human rights are respected in our third party palm supply chain Sustainable Plantations Our own plantation practices are aligned with Cargill s NDPE policy and uphold the highest standards Smallholders Smallholders in our supply chain are included, and engaged in sustainable practices..

6 Traceability 100% Traceability to mill level 100% Traceability to plantation in high risk landscape 100% Traceability to plantation in all landscapes Traceability GEOS EU traceability score to Plantation level 100% traceable to plantations by % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 33% 47% CPO 66% 71% 18% 20% PKO 35% 23% Q Q Q Q4 2017

7 Regional update: LATAM 2017 COLOMBIA 2 mill visits and 4 technical workshops 2 NDPE workshops 4 mills actions plans and (2016) follow-up Partnership on human rights issues New Cargill resource (1 FTE) to support implementation GUATEMALA One new mill visit Two NDPE workshop REPSA grievance and stakeholders engagement Building partnership on smallholder with Solidaridad BRAZIL NORAD/TFT partnership: Smallholders project addressing livelihood & deforestation (HCV/HCS) 3 deep & 4 broad engagements 148 people trained 5 workshops: No exploitation of people

8 Growing import from LatAm in Netherlands Source: Eurostat

9 Market of certified products in Europe (2017/18) Palm import EU 8 Millions MT 1,5 M MT RSPO SG 0,5 M MT MB LATAM Palm export into EU 1,5 Millions MT (Out of 4M MT production) Source: Fediol, USDA, Oil Annual world production of palm oil : +/- 60 millions MT

10 Volumes of certified palm oil (Supply & Demand) Blue: Supply Orange: Demand Source: rspo.org Source : RSPO

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12 Customer benefits of sourcing RSPO palm? RSPO IS THE STANDARDS THE MOST USED TO PROMOTE SUSTAINABLE PRACTICES Sustainable palm supply chain protecting forest, workers, communities and human rights, increasing small farmer income Increased transparency, traceability & credibility through independent 3 rd party verification A common standards that allow comparison across the industry

13 RSPO logo on product? Many of customers do not want to emphasize the presence of oils and fats in their product Palm debate around health & contaminants e.g. 3MCPD Brands desire to embed sustainability commitments, some are moving away from multi labelling of certification logos Even without labelling, companies keep sourcing certified ingredient to demonstrate the integrity of their product in line with their commitments

14 What happens in Europe? 2016: European Commission presented a proposal for a recast of the Renewable Energy Directive (RED II) to accelerate the uptake of renewable energy 2017: European Parliament adopted an amended report (a report only) proposing the ban of palm oil Today: Negotiations are still on going to arrive to a compromise/agreement (latest March 2019) Is ban of palm oil WTO compatible?

15 LATAM has a unique opportunity to position itself as a leader in sustainable palm oil All customers needs to demonstrate compliance with their NDPE policy by 2020 Convergence of NDPE requirements with RSPO P&C Increasing demand in Europe from customers to move from mass balance to segregated Europe is debating its position on palm oil & sustainability Growing demand for LatAm products Traders/refiners to work with trusted and preferred suppliers