Moving Forward With Purpose: Sustainability Report

Moving
forward
with purpose
Sustainability Report
Contents
Fundamentals
04
Moving forward with purpose
– CEO message
06
At a glance
08
Toward development goals
Pillars of sustainability
16
Our people
22
Our environment
30
Our partners
36
Our communities
Platform insights
44
Palm
48
Juice
50
Coffee
52
Cotton
54
Soybeans
58
Freight
Sustainability Report 2018 1

Fundamentals
04
Moving forward
with purpose –
CEO message
06
At a glance
08
Toward
development
goals
2 Louis Dreyfus Company Sustainability Report 2018 3

Fundamentals Pillars of sustainability Platform insights
Moving forward Our performance against targets in 2018

with purpose
CEO message
11 6 6 7 33 1
Completed In progress Amended Missed Newly set Removed
Introduced just over a year ago, our purpose by 1% in 2018 and, although there are aligned with our sustainability commitments First, we will be evolving our Corporate
perfectly reflects and drives the focus of our good reasons for this, that is not where we and meet consumers’ increasing demand Sustainability Policy, originally written
business. A lot of work was carried out in want to be. We will redouble our efforts in for product traceability. We are happy to in 2010 as an internal document, into
2018 to give our people across the company 2019 to attain the target 5% reductions by embrace greater scrutiny and work to find a publicly available statement of our
the opportunity to share their insights and 2022 (see pages 22-28). solutions to some of the challenges. commitments, globally and in specific value
suggestions on what exactly it means to chains such as palm, soy and coffee. It will
make our purpose an integral part of our In other areas, our partnerships with expert The road is not necessarily easy, but I, like also define more formally our commitment
day-to-day business. organizations produced great results in everyone at LDC, am resolved to focus on to promoting human rights in accordance
2018. We far exceeded our targets in achieving commercial success sustainably, with the United Nations’ Guiding Principles
At the same time, we are conscious that cotton by increasing the amount of Better in line with our purpose. on Business and Human Rights.
there is still much to be done and that no Cotton Initiative-verified produce we
one organization can solve the challenges purchased by 140% year-on-year, and by Diversifying for success Secondly, and building on this, we will
of feeding a growing world population 824% compared to 2013 (see page 52). In Diversity is one of LDC’s core values, reinforce our sustainability governance
sustainably. We are convinced that only by addition, we learnt that thanks to our long- and indeed the cultural, geographic and processes with a new oversight committee
working together to find shared solutions standing partnership with the International commercial diversity of our business is one for each of environmental and human rights
to common global issues can we create Labour Organization (ILO) and myriad other of our fundamental pillars of success. But protection. Both committees will include
a future that is sustainable and fair for all. stakeholders, we achieved our objective of because we want to lead our industry in members of LDC’s Senior Leadership Team
Partnership among the myriad actors – eradicating child labor from cotton harvests this space, we can and need to do more. and sustainability function, and we are
governments, civil society, intermediaries, in Uzbekistan (see page 31). looking to engage acknowledged experts
transporters, farmers, etc. – is the only A genuine respect for differences and from outside the company to sit on each
path forward. Still, recognition of significant progress recognition of the importance of inclusion committee, to guide and challenge us.
in Uzbekistan is tempered by concerns are already part of LDC’s DNA. To make
This report highlights some of the about child labor in Burkina Faso’s cotton every aspect of working at our global I believe these steps, guided by our values
achievements and positive steps we have industry, raised by NGO Solidar Suisse. company welcoming for every profile of and purpose, will provide LDC with a
taken, alone and in partnership with others, Although all the cotton we source from talented person who might join us, we solid foundation on which to progress
during 2018 to develop a sustainable and Burkina Faso is certified through the are exploring ways to bring this to life in further toward transparent, traceable and
traceable value chain, and an environment in Cotton Made in Africa scheme, which practical ways. sustainable operations.
which people and communities can flourish. trains farmers on the need to eliminate
As we publish our Sustainability child and forced labor, we are investigating As a first step, in 2018 we completed
Report for the seventh year in a Successes and challenges in 2018
You will find in this report many examples of
how we can improve further. a gender diversity review, which has
become the basis for a full-scale program
row, I am pleased with the progress how our day-to-day business is inextricably Palm and soy also reported successes of broad policy changes and more granular
linked with the drive toward a safe and during the year, not least with the adjustments as we move forward
we are making and the connection sustainable future. introduction of our industry-leading Soy (see pages 20-21).
of our long-standing sustainability 2018 was our first year spent working
Sustainability Policy. Here again, there is a
lot of work to do and we are likely to face I believe this will make LDC more inclusive,
efforts to the company’s purpose of toward the global, time-bound environmental challenges, but we will remain resilient in regardless of gender, origin or background,
fair and sustainable value creation. impact reduction targets we set in 2017, and
this process has pushed us to take great
our commitment. and help ensure that we attract, nurture and
retain the best available talent everywhere.
strides and to confront difficulties. In palm, we have already excluded certain
suppliers for non-compliance with our Palm The future of sustainability
We have made important steps in Sustainability Policy, and decided not to Our purpose to create fair and sustainable
measuring our impact transparently, for trade with other entities in the same group value remains our ultimate goal. I would
instance by presenting the full carbon profile on other commodities. like to mention two key areas where we
of our Freight activities for the first time will put particular focus in the near future,
(see page 59), as a baseline from which As our business strategy leads us further in order to deliver on our commitments to
to improve. At the same time, we missed downstream in our value chains, we are also sustainability and transparency.
our goal to reduce overall environmental looking to ensure that new investments are
impacts associated with our asset footprint

Calgary Moscow
Rotterdam
Wittenberg
Antwerpen Warsaw
London Kiev
North America Ghent
At a glance
Paris
Grand Junction Ürümqi
Norfolk Geneva Milano
Claypool, Chicago Lyon Beijing
Sofia Krasnodar Shymkent
Claypool Wilton
Indiana, US Kansas City Madrid Istanbul
Fresno Lisbon Zhangjiagang &
Major initiatives to Cordova North Asia
improve wastewater Lubbock
Dongguan, China
Brazil Shanghai
treatment Port Wentworth Innovations to
Sugar Commitment to Gurgaon
Winter Garden Alexandria reduce GHG
Land preserving the Kunming
Europe, Dubai Karachi emissions by
Louis Dreyfus Company Cerrado through
Middle East reusing heat
LDC’s Soy
is a leading merchant and Mexico D.F. Sustainability Policy & Africa
processor of agricultural Villanueva
Dakar Bangalore
goods, leveraging its global Ho Chi Minh South &
reach and extensive asset Bogotá
North Abidjan
Lagos
Southeast
Latin Asia
network to deliver for America Kampala
Klang
Singapore
Tema
customers and consumers Nairobi
around the world – safely, Mombasa Jakarta
responsibly and reliably. India

Lima
Lusaka
Collaborative project
training 10,000
South & West São Paulo cotton farmers on
Latin America Asunción Santos
Johannesburg
intercropping, proper
use of fertilizers and Brisbane
Ethiopia & women’s inclusion
Rosario Uganda
Montevideo
Argentina Partnership with the
Buenos Aires
Member of the Louis Dreyfus
Foundation and Melbourne
Agroideal
multi-stakeholder PUR Projet to provide
Key comprehensive coffee
group identifying
Grains & Oilseeds farming training
areas where soy
Rice
farming expansion is
Coffee suitable
Cotton
Sugar
Juice
Dairy
Offices
Our vision Our mission Value Chain Segment Merchandizing Segment
To work toward a safe To use our know-how Grains Coffee

and sustainable future, and global reach to bring
contributing to the the right product to the
global effort of providing right location, at the Oilseeds Cotton
sustenance for a growing right time.
population.

Juice Sugar
Our purpose
Freight Rice
We are committed to supporting the communities

we serve, through fair and sustainable value creation. Global Markets Dairy

Toward
development
SDGs 2 /
17 8/ 12 /
SDG 13
/ 15
goals
/ 17
Deforestation, SD
Partnership Conversion &
G
s
Working Biodiversity
1/
16
2/
G
SD
7/
Land Climate
12
Led by our purpose, we aim to be Rights Change
/
13
a leader in our industry toward
meeting the UN’s Sustainable
Development Goals (SDGs). These
SDGs 6 / 12 / 14 / 15
goals, and the motivation behind Partnership Working
them, are clear, but the fundamental
LDC
/ 10
Water
sG5 5
ways in which agribusinesses like Diversity Scarcity
LDC can help are less well known.
Global Policy: SDGs
Challenges
SDSGD
Our Partners (p30)
Last year’s report outlined the SDGs we can Platforms

contribute to through our position in each of our Juice Soy
value chains, and how we do so. In this report, Coffee Freight
we explain how we will develop our direction and
Cotton Palm
governance to accelerate those efforts across Human Waste
the Group. Rights
SD
12
Gs
Land Rights
2/
4/
1/
Safety Economic
5/
Gs
8
Development
SD
SDGs 6
/1
Platforms
Palm
9
Soy 8/
SDG 5/
8 1 /4/
Sustainable Development Goals (SDGs) SDGs
SDG 1 No Poverty
SDG 2 Zero Hunger
SDG 3 Diversity Safety Climate Change Waste
Good Health and Well-Being
SDG 4 Quality Education Global Policy: SDGs Global Policy: Global Policy: Global Policy:
SDGs SDGs SDGs
SDG 5 Gender Equality Our People (p20) Our People (p17) Our Environment (p23) Our Environment (p23)
SDG 6 Clean Water and Sanitation
Platforms Platforms Platforms
SDG 7 Affordable and Clean Energy Juice Freight Coffee Juice
SDG 8 Decent Work and Economic Growth Soy
SDG 9 Industry, Innovation and Infrastructure
Deforestation,
SDG 10 Reduced Inequalities
Conversion &
SDG 11 Sustainable Cities and Communities
Human Rights Biodiversity Water Scarcity Economic Development
SDG 12 Responsible Consumption and Production
Global Policy: SDGs Global Policy: SDGs Global Policy: SDGs Global Policy: SDGs
SDG 13 Climate Action
Our People (p20) Our Environment (p23) Our Environment (p23) Our Communities (p36)
SDG 14 Life Below Water
Platforms Platforms Platforms Platforms
SDG 15 Life on Land Cotton Palm Juice Cotton Coffee Juice Cotton
SDG 16 Peace and Justice Strong Institutions
Soy Soy Coffee Juice Coffee
SDG 17 Partnerships for the Goals

Toward development goals continued Fundamentals Pillars of sustainability Platform insights
Deforestation, Climate Water Waste

Leading with • Environmental Committee – the remit of
conversion & change scarcity
purpose this new committee will cover all other
aspects of LDC’s environmental impacts, biodiversity
principally in relation to our supply
Originally established in 2010, LDC’s policy, chains. Standing members will include
governance structure and group-wide The challenge The challenge The challenge The challenge
our CEO, COO, Head of the Oilseeds
approach to sustainability have evolved Conserving forests and other high Grow our activities with a lower impact, Use less water at our citrus farms and Eliminate waste from value chain stages
Platform, Head of Sustainability and
over the years. We have added policies and conservation value habitats, while and help other stakeholders do the same. processing assets, while ensuring we control, including by investing in
Head of SHE. We also aim to engage the
governance where necessary, such as our meeting rising food demand with wastewater is clean, and help others logistics to optimize origination and
membership of an acknowledged expert
palm and soy sustainability policies, and diminishing available land. do the same. reduce post-harvest waste, and help
from outside the company, and will invite
our code of conduct for coffee suppliers. others reduce waste.
ad hoc attendees where necessary.
Today, following the introduction of our • Human Rights Observance Committee Applicable SDGs Applicable SDGs Applicable SDGs Applicable SDGs
company purpose, it’s time to create a – also new, this committee will direct
new, unified set of policies and procedures our approach on all human rights-related
that will help ensure we both monitor and issues, from diversity within LDC to child
maintain overall momentum. labor in supply chains, based on a new
Human Rights Observance Protocol.
Policy Members will include our CEO, COO, Our policies Our policies Our policies Our policies
We are formulating a new, Group-wide Heads of HR and Sustainability, and New LDC Sustainability Policy New LDC Sustainability Policy New LDC Sustainability Policy New LDC Sustainability Policy
Sustainability Policy, to be completed in representatives of our platforms and Palm Sustainability Policy
2019, which will provide a framework for all other business areas as appropriate. Soy Sustainability Policy
platforms, bringing together best practice Again, we will seek to include relevant Coffee Supplier Code of Conduct
from existing commodity-specific policies external expertise.
and procedures, and adding a specific Oversight Oversight Oversight
Oversight
Human Rights Observance Protocol. SHE Committee SHE Committee SHE Committee
• Regional Community Committees New Environmental Committee
– these new committees will guide
The new policy will also serve to govern and oversee the application of the
all activities under our Community pillar, community framework within LDC’s new Key commitments Key commitments Key commitments Key commitments
currently devolved for decision by each Sustainability Policy for their respective LDC global No Deforestation, No Peat, 5% reduction in our GHG emissions and 5% reduction in our water consumption 5% reduction in solid waste sent to
of LDC’s regions. Activity will continue to region. They will review regional needs No Exploitation (NDPE) commitment energy consumption indexes by 2022 index by 2022 landfill by 2022
be planned and implemented at regional and priorities, select initiatives, set
level, but in accordance with our new budgets and oversee implementation.
policy guidelines. Each committee will be chaired by the Direct effect Direct effect Direct effect Direct effect
relevant Head of Region, with other Juice, citrus farming in Brazil p48 Environment p22 Environment p22 Environment p22
Governance members selected case by case. Freight, fleet emissions monitoring and
In 2019, we will establish a new governance chartering decisions p59
structure that allows focus on key areas, Details on how the policy and governance
as follows: structure applies across the main
challenges we face are opposite. Influence/partnership working Influence/partnership working Influence/partnership working Influence/partnership working
• Safety, Health & Environment (SHE) Palm, NDPE activity p44 Community, training farmers pp37-41 Community, training farmers pp37-41 Community, helping farmers get products
Committee – this existing committee Soy, NDPE activity p54 Cotton, training farmers p53 Cotton, training farmers p53 to market rather than wasting p38
will retain oversight and planning in Juice, Biodiversity and Conservation Plans, Coffee, training farmers p51
relation to workplace safety and the Rainforest Alliance activity p49 Juice, training farmers p48
environmental footprint of our offices, Coffee, training farmers and responsible
logistic assets and industrial facilities. sourcing p51
Members include Regional SHE leaders Cotton, training farmers p53
and members of the LDC Senior Sugar, Bonsucro activity p31
Leadership Team. Community, training farmers pp38-41

Toward development goals continued Fundamentals Pillars of sustainability Platform insights
Economic Safety Human Diversity Land Working in

development at work rights rights partnership
The challenge The challenge The challenge The challenge The challenge The challenge
Contribute to economic empowerment Create a zero-accident work environment, Use fair labor practices; eliminate child Remove any discriminatory imbalances Respect the rights of all landowners in Meeting all our other challenges
through creating jobs, contributing to by encouraging our employees and others and forced labor from our supply chains; that exist for people working for LDC, expanding our operations.
education and promoting access to to live safer, healthier lives. respect diversity in all its forms. and influence others to do the same.
international markets for people in areas
where we invest in our footprint.
Applicable SDGs Applicable SDGs Applicable SDGs Applicable SDGs Applicable SDGs Applicable SDGs
Our policies Our policies Our policies Our policies Our policies Our policies
New LDC Sustainability Policy New LDC Sustainability Policy Human Rights Protocol New LDC Sustainability Policy Human Rights Protocol New LDC Sustainability Policy
Palm Sustainability Policy
Soy Sustainability Policy
Coffee Sustainability Policy
Oversight Oversight Oversight Oversight Oversight Oversight

Regional Community Committees SHE Committee Human Rights Observance Committee Human Rights Observance Committee Human Rights Observance Committee All committees
Key commitments Key commitments Key commitments Key commitments Key commitments Key commitments
Establish a new framework for all Reduce the frequency, gravity and LDC global policy: do not employ any Signatory to the UN Global LGBTI Complete an environmental and social N/A
community projects in 2019 severity of accidents each by 10% person under 16 Standards for Business. impact assessment before building any
year-on-year 7 targets for 2019-20, implementing new, or expanding any existing, asset.
global changes to ensure an inclusive
work environment at LDC.
Direct effect Direct effect Direct effect Direct effect Direct effect Direct effect
Across our business, investing in People p16 People, primary policy p20 People, diversity and inclusion Environment, policy on impact N/A
developing assets and creating jobs Juice, recruiting seasonal workers p48 work p20 assessments p23
Soybeans, implementing impact
assessments in Brazil p55
Influence/partnership working Influence/partnership working Influence/partnership working Influence/partnership working Influence/partnership working Influence/partnership working
Community, multiple training People, training employees and third Partners, Uzbekistan collaboration p31 Cotton, educating farmers in India p53 Soybeans, partnerships for land rights Coffee p50
projects pp37-41 parties p19 Palm, implementing Sustainability Policy protection in Paraguay p57 Community p36
with suppliers p45 Cotton p52
Soy, implementing Sustainability Policy with Environment p22
suppliers p54 Freight p58
Coffee, implementing Sustainability Policy Juice p48
with suppliers p51 Palm p44
Partners p30
Soybeans p54

Pillars of
sustainability16
Our people
22
Our environment
30
Our partners
36
Our communities

Our Targets
people Reduce lost time

injuries to zero
Reduce
frequency of
Reduce gravity
of workplace
Complete gender
diversity reviews
workplace accidents by across all LDC
accidents by 10% YOY Regions
10% YOY
Completion: Completion: Completion: Completion:

In Progress 2018 2018 2018
Progress: Progress: Progress: Progress:

In Progress Missed Missed Completed
LDC employs an average of Committed to zero Global Frequency, Gravity & Severity Indexes
18,000 people throughout the
year, and engages several LDC is committed to the long-term
goal of creating a zero-accident work Year-on Year Year-on-Year Year-on-Year
thousand contractors, across our environment at all our sites. Accordingly, Evolution in Evolution Evolution
180 locations around the world. our Safety, Health & Environment (SHE) Frequency in Gravity in Severity
+5.3% +10.5% -7.9%

policy and management system aim to
embed a safety culture in the daily work
As a global employer, we are in a key position of every single employee and contractor
to contribute to Sustainable Development who works for and with us. 2018: 0.81 2018: 0.34 2018: 7.94
Goals to eliminate poverty, create decent jobs, 2017: 0.77 2017: 0.30 2017: 8.60
aid economic growth and promote inclusive This relentless focus on safety is reflected in
work environments for many people, directly ambitious targets to reduce the frequency,
and indirectly. gravity and severity of accidents every year. The Frequency Index shows the The Gravity Index is a subset The Severity Index shows the
relation between the number showing the relation between relation between the number of
Although we reduced the number of of workplace injuries requiring the number of workplace days away from work needed
medical attention, and hours injuries serious enough to result due to injury, and hours work. It
recordable injuries in 2018, with fewer
worked. The ratio expresses in time away from work, and is expressed per 100 employees
hours worked in total across our assets, the number of employees in hours worked. for 1 working year
we missed our reduction targets for the every 100 who experienced an
year. We nevertheless reduced the severity injury needing medical attention
of accidents compared to 2017, and set during the year.
a new target to reduce the severity of
accidents by 10% year-on-year from
2019 onwards. Frequency Gravity Severity
2018 0.81 2018 0.34 2018 7.94

2017 0.77 2017 0.30 2017 8.60
2016 0.85 2016 0.31 2016 12.94
2015 1.46 2015 0.62 2015 16.86
2014 1.90 2014 0.99 2014 46.06
2013 2.29 2015 1.31
2012 2.50 2012 1.51

Zero Lost Time Injuries 2012 to 2018 Making SHE a priority

The proportion of assets that operated We constantly strive to ensure that our Our efforts in 2018 centered on simplifying
for an entire year without a lost-time SHE strategy is a priority at all levels of processes and executing our SHE strategy
accident (which is an accident requiring our company. It is deployed through our efficiently, by:
time off work) in 2018, remained SHE Policy and built around three pillars:
comparable to 2016 and 2017 levels. • Rolling out a new KPI reporting system
• Occupational Safety and Health to all assets, with a simpler, faster, more
• Process Safety powerful tool to track performance from
% of Facilities Recording Zero Lost Time Injuries
• Environment specific areas within assets up to global
level, allowing employees to focus on
Safety Day
Each asset shares best practices and injury prevention
Asia Europe & Black Sea Middle East & Africa procedures through our SHE Management LDC celebrated its 9th annual Safety Day
System, setting expectations for • Completing our suite of new standards on March 14th, 2018, reinforcing our safety-
compliance by every employee and and policies for all activities identified as first culture and encouraging individuals to
2018 84 2018 71 2018 79 take responsibility for collective safety in
contractor. involving the highest risk
2017 80 2017 77 2017 86 their work environment, with the theme
SHE committees at global, regional and • Refining the SHE Management System “Our safety is my priority”.
2016 90 2016 76 2016 73 asset level are responsible for overseeing with standards for each asset in a leaner,
2015 74 2015 82 2015 83 the proper execution of this system, more effective process Taking place at every LDC location, over
defining priorities, assessing resource 11,000 employees and more than 2,000
2014 63 2014 88 2014 92 requirements and monitoring progress contractors and joint-venture partners
2013 73 2013 75 2013 67 against targets. participated in the day’s events and
activities.
North America North Latin America South & West Latin America Global
2018 82 2018 79 2018 76 2018 78

2017 79 2017 80 2017 83 2017 80
2016 89 2016 73 2016 93 2016 82
2015 70 2015 53 2015 75 2015 66
2014 81 2014 59 2014 61 2014 63
2013 78 2013 39 2013 68 2013 54
This year’s reporting preserves LDC’s previous regional structure to aid comparison

Our people continued Fundamentals Pillars of sustainability Platform insights
A diverse LDC Gender, by Region, with Age, by Region, with comparison to 2017 Nationality, Globally, with comparison to 2017
New Targets
comparison to 2017 % of employees % of employees
% of employees Reduce lost time injuries to zero
With diversity one of LDC’s core values,
seeking to inspire respect for every Male Female Under 20 30-39 50-59 70+ Target:
2018 58 9 7 5 4 3 22 10 In Progress
individual, and for diversity in all its 20-29 40-49 60-69
forms, is a priority – and this in every
aspect of our business. 2017 58 9 7 4 4 3 15 Reduce frequency of workplace
EMEA EMEA accidents by 10% YOY
To fully leverage the diversity of talent at
LDC, we have identified the need to do Key 2018 Key 2017 Target:
more to ensure our work environment 2018 61 39 2018 15 34 24 19 7 Brazil Brazil 2019
is inclusive. Supported by an external United States of America United States of America
consultancy, in 2018 we conducted several 2017 62 38 2017 16 33 24 20 1 Argentina Argentina Reduce gravity of workplace
rounds of consultation and interviews with China China accidents by 10% YOY
people across all our regions. The results Russian Federation Russian Federation
led to the definition of an action plan for India India Target:
2019 and 2020, and a diversity program North America North America Indonesia Other 2019
that will begin in 2019. Ukraine
73 27 14 23 24 27 11 1 Other
2018 2018 Establish a Global D&I Oversight
The first phase of action aims to build the
Committee
foundations for change through a series 73 27 13.5 23 23 28 11 1
2017 2017
of workshops for senior management and
Target:
human resources, covering unconscious 0.5
2019
bias and inclusive leadership. The second
phase is designed to embed and sustain
lasting change across the company.
North Asia North Asia 2019 and beyond Create a global D&I policy
framework
Although specific steps will differ in each 2018 60 40 2018 22 53 19 6
Protecting the safety and wellbeing • Integrating D&I policy and Target:
region, they will fall under one of two of our people remains our top materials into employee
categories: 2017 57 43 2017 28 50 18 5 2019
priority, and we will continue to onboarding processes at a
aim for 10% annual reductions in regional level
• Inclusive culture – promoting a culture All HR teams to integrate D&I
our safety metrics and, ultimately,
that celebrates diversity for a zero-accident environment • Establishing a set of globally materials in local employee
South & Southeast Asia South & Southeast Asia onboarding process
across all our locations. applicable principles for
• Inclusive talent – ensuring that our talent promoting work-life integration
management process is bias-free 80 20 23 50 20 5 1 Target:
2018 2018 As previously mentioned, phase 1 and flexible work
2019
of our diversity program involves
LDC also became a signatory to the UN 80 20 26 47 20 5 1 a range of activities to make our • Creating region- and platform-
2017 2017
Global Lesbian Gay Bisexual Transgender inclusion goals happen over 2019- specific work-life integration Create a global inclusive
and Intersex Standards for Business in 2020, including: options recruitment standard
2018. As pointed out by our partners at the
UN (see page 34), we are at the beginning North Latin America North Latin America • Establishing a Diversity & • Refreshing our employee value Target:
of our work, and these standards will Inclusion (D&I) Oversight proposition and our approach to 2019
inform our ongoing program of change Committee attracting talent
at LDC. 2018 77 23 2018 3 30 32 21 12 2
Establish global principles for
• Incorporating D&I within business • Setting a global inclusive promoting work-life integration
2017 76 24 2017 2.5 30 32 21 12 0.5
planning and review processes recruitment standard for LDC
2 Target:
• Creating a global policy 2020
framework with flexibility for
South & West Latin America South & West Latin America
local implementation Put into place region- and platform-
specific options to promote work-
2018 87 13 2018 20 43 25 10 1
life integration and flexible work
2017 86 14 2017 23 45 22 9 1 Target:

2020
Refresh the LDC employee value

Global Global proposition and talent attraction
strategy
2018 75 25 2018 2 25 35 22 13 3
Target:
2017 75 25 2017 2 26 34 21 13 3 0.5 2020

Our Targets
environment Reduce
global energy
Reduce global
greenhouse
Reduce
global water
Reduce solid
waste sent to
Reduce
global energy
Reduce global
greenhouse
Reduce
global water
Reduce solid
waste sent to
consumption gas emissions consumption landfill by 1% consumption gas emissions consumption landfill by 1%
by 1% year- by 1% year- by 1% year- year-on-year by 1% year- by 1% year- by 1% year- year-on-year,
on-year on-year on-year on-year, each on-year, each on-year, each each year
year from year from year from from 2019-
2019-2022 2019-2022 2019-2022 2022
Completion: Completion: Completion: Completion: Completion: Completion: Completion: Completion:

2018 2018 2018 2018 2022 2022 2022 2022
Progress: Progress: Progress: Progress: Progress: Progress: Progress: Progress:

Missed Missed Missed Missed In progress In progress In progress In progress
Feeding 9 billion people in

2050 will require 50% more
Biodiversity Emissions,
agricultural production and 15%
Targeting We prioritize the protection of ecosystems water and waste
higher withdrawals of water.1 both in our daily business operations and
The need to increase production emissions when we expand our footprint. Having set time-bound reduction targets
in 2017 across all our environmental
may compete with the need reductions in all We recognize that losing land of high metrics, 2018 was an extremely
to preserve land with high areas of our ecological value destroys habitats, has challenging year.
ecological value that is vital knock-on effects for climate change,
business affects water retention and can disrupt local Overall volumes of feedstock handled
to our global ecosystem. communities. That is why we launched our were down 10%, and some of our regions
company-wide No Deforestation, No Peat, were affected by extreme weather events.
No Exploitation (NDPE) commitment in Since our metrics are based on resource
LDC has a leading position in the value 2016, which leads us to: usage (or waste) per ton of feedstock
chain, as a global merchant and processor processed or handled, the volume reduction
of agricultural goods, with logistic assets • Conduct environmental and social impact heavily impacted our performance against
though only limited farming operations. assessments before commencing a targets despite improvements at most of
Our position gives us a responsibility and new project in an area with potential our locations. It is worth noting that these
opportunity to source and distribute products sensitivities – for instance in building issues mostly affected South America.
reliably and responsibly, while reducing the new logistics capacity in northern Brazil
environmental impact of our sector. (page 55). This context led to a disappointing 2018
performance across environmental metrics
• Replace habitats that we build over
Prioritize with annual targets missed, but we will
Our work therefore focuses on:
when we extend or develop new assets. the protection redouble our efforts to get back on track to
meet our 2022 targets, including significant
Biodiversity – preventing habitat destruction
• Create and follow Biodiversity Protection
of ecosystems new capital investments to be deployed in
that may be caused by our activities
and Conservation Plans at all our citrus 2019-20.
Emissions and energy usage – targeting farms in Brazil (see page 49).
reductions in all areas of our business
• Train farmers in responsible farming
Water consumption and wastewater – practices that preserve habitats – for
minimizing freshwater use and ensuring instance in our Coffee Platform, working
wastewater does not cause pollution, with NGOs and customers (see page 51).
mainly at processing assets
Our NDPE commitment is a particular focus
Solid waste generation – saving resources for our palm and soy operations, with more
by reusing or recycling, and avoiding detail on pages 44 and 54 respectively.
pollution by properly disposing of waste
1 The World Bank, 2017 (https://blogs.worldbank.org/

opendata/chart-globally-70-freshwater-used-agriculture)

Our environment continued Fundamentals Pillars of sustainability Platform insights
Greenhouse Energy
gas (GHG) consumption
emissions
GHG Emission Index Electrical Power Consumption Index

(Kg CO2e/MT) (Kwh/MT)
The GHG emissions index shows the The energy consumption index shows
quantity of GHGs emitted per ton of the ratio of electrical power consumed
feedstock either crushed or processed to process feedstock in each region.
for each region in which we operate. For industrial facilities this refers to
It is measured in kilograms of carbon feedstock processed, and in the case
dioxide-equivalent per metric ton of of a warehouse or logistics facility we
feedstock (Kg CO2e/MT). refer to feedstock handled. The unit of
measurement is kilowatt-hours per
The year-on-year increase in this index metric ton (KWh/MT).
includes a 7% absolute increase
in emissions compared to 2017. In In 2018 we changed the way this index
addition to the global decrease in is calculated, to reflect how we report on Ponta Grossa, Paraná state, Brazil
volumes handled, the primary driver Dongguan, China this data. It now shows electrical power
was the inclusion for the first time in consumption and not energy consumed Case study
our reporting of the purchase of third by burning fuel, since our efforts to
party-produced steam in Asia. The sale reduce the latter are tracked by the Energy Energy consumption
of our fertilizers and inputs business Case study Case study GHG emission index. We are therefore consumption
16%
also removed several low energy focusing energy consumption on electrical Preparing soybeans for soybean oil production
usage sites from our calculations. GHG emissions GHG emissions power consumed, in order to monitor our
footprint in a more streamlined manner.
uses energy to crack the beans, to crush them
to increase surface area, and to heat them.
efficiency & solar energy This is the beginning of a process to
reflect the goal of reducing fossil fuel
2018: 15.54 Kwh/MT
Energy usage in the process depends on the
2017: 13.35 Kwh/MT
In 2018, two soybean-processing plants Brazil and Kenya have excellent conditions consumption, with reporting ultimately amount of soybeans fed in, but the power
in China, at Zhangjiagang and Dongguan, for harnessing solar power. This year we covering all carbon dioxide (equivalent) supply was not being modulated to account
GHG emissions innovated to reuse heat, improve installed solar panels at both our Alto generated in our supply chain. for this at our processing asset in Ponta
Grossa, Paraná state, Brazil. Introducing a
18%
processes and thereby reduce emissions. Garças oilseeds warehouse in Mato Grosso
state, Brazil, and our palm oil storage In addition to the reduction in volumes tool to adjust energy consumption based on
To extract oil from soybeans, a significant facility in Mombasa, Kenya. handled, a significant rise in production soybean volumes, in addition to the use of
amount of heat is used and then lost, in Asia (particularly biodiesel and sugar lighter, plastic buckets on soybean elevators
2018: 39.57 Kg CO2e/MT processing in China) pushed energy instead of metal, cut Ponta Grossa’s electricity
usually in the form of steam. Alto Garças was LDC’s first solar generation
2017: 33.44 Kg CO2e/MT
plant in Brazil, and made the warehouse consumption higher. Efficiencies will be consumption by 1.7%.
Our teams in Dongguan found a way energy self-sufficient. It often generates made over the coming year to mitigate
to reuse the heat, by introducing a heat more electricity than it needs, which is then this effect and bring about a return to
exchanger to create the hot air required transferred through distribution lines to reductions in this metric.
to dry soybean meal. This cut emissions supply nearby homes with clean energy.
from the site by almost 4 million Kg CO2e
per year.
In Zhangjiagang, our teams designed a

new heat exchanger to reuse heat given
off in this same process. Between heating
miscella to separate soybean oil from its
solvent and cooling the oil that has been
separated out, they then installed a new,
more efficient exchanger. These efforts will
save over 1.5 million Kg CO2e annually.

Case study
Solid Water Water usage

waste consumption Our citrus processing plant in Matão, São Paulo
state, Brazil, found a way to save over 175,000m3
of water annually by investing in a new conveyor
belt system.
The belt system is essential to move oranges

around the facility, but used to require a constant
flow of water to prevent slippage. The new belt
system does not require water at all, saving
Waste Index Water Consumption Index approximately 20m3 per hour.
(MT/MT) (m3/MT)
The ratio here shows the amount of Our water consumption index shows
waste produced and sent to landfill the ratio of water used for each metric
for every ton of feedstock crushed or Solid waste ton of feedstock crushed or processed.
processed. It is measured in metric tons (MT/MT) It is measured in cubic meters per
32%
per metric ton (MT/MT). metric ton (m³/MT).
We no longer report on wastewater An extremely dry growing season

volumes to focus on key KPIs, in Brazil caused our citrus farms to
2018: 0.0018 MT/MT
particularly on reducing water 2017: 0.0014 MT/MT
have to use an additional one million
consumption. Using less water, cubic meters of water compared to
including by reusing water that might 2017. Combined with lower feedstock
otherwise be treated as waste, will Claypool, Indiana, US volumes, especially in South & West
positively impact our wastewater profile Latin America, despite an absolute
as well. The proper treatment of water Case study Case study reduction in water consumption by 9%,
that cannot be reused and its return this led to an 18% increase in this index.
to public systems or watercourses Solid waste Wastewater
remains, of course, a priority. We will
therefore continue to report on our Refining palm oil at our facility in This year we took several steps to get ahead
continuous improvement efforts in this Lampung, Indonesia, generates ash from of the phenomenal growth of our oilseed
area, as you can see from the case operating boilers and bleaching earth, a processing capabilities in Claypool, Indiana,
study opposite. bought-in product for cleaning palm oil US, which had created a rapid increase in Water
during the process. the volume of wastewater our treatment Consumption
18%
Major improvements in solid waste systems were being asked to handle.
reduction were, unfortunately, offset by Our local SHE managers identified a way to
two one-off events in 2018, resulting in reuse these products, instead of discarding We installed additional storage tanks to
an overall increase in waste sent them as waste. They found a local cement hold wastewater at peak times, removing 2018: 0.297 m3/MT
to landfill. factory, operated by Baturaja Cement stress from the treatment process. 2017: 0.252 m3/MT
Persero, and a nearby brick maker, Putra We also installed frac tanks that more
A combination of various reduction, Restu Ibu Abadi Company, who could both effectively remove organic contaminants,
recycling and alternative waste disposal use the products, with other raw materials, improving capacity. Further projects are in
methods contributed to excellent results in their manufacturing processes. the pipeline, including:
in both North Asia (36% reduction) and
North Latin America (42% reduction). In 2018 alone, this resulted in over 13,000 • A new deionization unit for the glycerin
tons of ash and earth being turned into plant, which will reduce demand on other
At our grain elevator in Port Allen, cement and bricks, instead of being disposed parts of the wastewater treatment process
Louisiana, US, however, 11,100 tons of of as waste. With this approach we also save
grain became wet during storage, could waste disposal costs, generate revenue by • A dewatering press that will reduce the
not be processed and had to be sent to selling the ash and earth, and help two local volume of sludge currently applied to
landfill. At our sunflower seed processing companies reduce their own resource usage. land by 90%
plant in Lichtenburg, South Africa, waste
seed husks produced in 2017, before we • Additional Dissolve Air Flotation units to
took control of the plant, had not been improve final filtration
disposed of and had to be sent to landfill
in 2018. These two events combined
represented 50% of all waste sent to
landfill by LDC this year, which means
we expect a huge improvement in 2019
compared to 2018.

Environmental performance by Region

Each of LDC’s business regions has targets to contribute to the company’s
reduction goals, as well as systems and targets, right down to asset level,
to generate efficiencies.
This breakdown helps to see where opportunities arise across our global
portfolio, while the case studies illustrate how autonomous, asset-by-asset
efforts drive performance.
GHG Emission Index Electrical Power Consumption Index

(Kg CO2e/MT) (Kwh/MT)
EMEA EMEA
2018 2.78 2018 17.25

2017 1.87 2017 11.62
North America North America
2018 22.81 2018 12.00

0.41
2017 21.02 2017 11.33
North Asia North Asia
2018 111.18 2018 33.96

2017 25.96 2017 25.05
South & Southeast Asia South & Southeast Asia
2018 48.06 2018 13.13

2017 36.90 2017 3.61
North Latin America North Latin America
2018 79.84 2018 21.55

2017 88.08 2017 21.50
2018 16.78 2018 12.37

2017 14.94 2017 11.18
Global Global
2018 39.57 2018 15.54

2017 33.44 2017 13.35
Water Consumption Index Waste Index

(m3/MT) (MT/MT)
EMEA EMEA
2018 0.145 2018 0.010

2017 0.115 2017 0.005
North America North America
2018 0.219
0.41 2018 0.0019
2017 0.211 2017 0.0012
North Asia North Asia
2018 0.255 2018 0.0034

2017 0.285 2017 0.0028
South & Southeast Asia South & Southeast Asia
2018 0.222 2018 0.0031

2017 0.146 2017 0.0048
North Latin America North Latin America
2018 0.646 2018 0.0002

2017 0.593 2017 0.0004
2018 0.129 2018 0.0009

2017 0.106 2017 0.0007
Global Global
2018 0.297 2018 0.0018

2017 0.252 2017 0.0014

Our Code of Conduct – we will
partners not tolerate child or forced

labor anywhere in our
supply chains
Collaboration in Our Rice Platform has its own concerns

over the lack of visibility of labor practices
2018 at farm level, given its leading position
as a purchaser of Asian rice, mostly in
bulk, from wholesalers and local traders.
As a leading global merchant and We engaged in several major initiatives In 2019, we will conduct our own due
processor of agricultural goods, and many enriching interactions across diligence on labor practices throughout
we have influence throughout the LDC this year. These are set out in the our rice supply chain.
table overleaf, while various detailed
value chain but recognize that examples feature in the subsequent Soft Commodities Forum
we can have a greater impact business sections. Several other projects In 2017, LDC joined the World Business
by working with others. This is deserve to be highlighted here. Council for Sustainable Development, the
why Sustainable Development organization uniting global businesses in
Eradicating child labor pursuit of sustainability goals, and became
Goal 17, which advocates LDC’s global Code of Conduct states that one of the founding members of its Soft
“partnerships for the goals”, we will not tolerate child or forced labor Commodities Forum (SCF).
anywhere in our supply chains. Given that
is so important to us. such labor mostly occurs at farm level, One of the SCF’s first significant initiatives
and that our only farms are citrus groves relates to conserving the Cerrado biome
in Brazil, we have to work particularly hard – an incredibly important ecosystem in
We leverage our position to learn from, train to identify and remove such practices from South America that is under threat from
and create change with others. Examples our supply chains. rapidly expanding agriculture. As part of
of how we do this, and insights from some our commitment to help feed the world’s
of our partners, appear in this section. Our The approach taken by our Cotton Platform Having discovered poor practices in growing population sustainably, we have
partnerships also feature in the sections in Uzbekistan is an excellent example of Uzbekistan, the ILO set up a program in helped the SCF to develop a response.
dedicated to our business lines: our collaborative approach and the positive 2014 to eliminate these in partnership with
outcome that can result. the Uzbek government, supported by LDC
Palm pages 44-47 We can have a and other ACME members through the ILO
As explained in the soy-specific section of
this report (see page 55), from the 2018
Juice pages 48-49 greater impact Following a complaint by an NGO in 2010 and the Child Labour Platform. harvest onwards, as SCF members we
that cotton production in Uzbekistan
Coffee pages 50-51 by working often used child labor, LDC and other As a result of these combined efforts, the
commit to report publically every 6 months
on the percentage of soy sourced in the
Cotton pages 52-53 with others stakeholders in the Association of Cotton ILO has an ongoing, productive, consultative Cerrado, with the first report published in
Soybeans pages 54-57 Merchants in Europe (ACME) worked with relationship with Uzbekistan and, by 2018, June 2019.
Freight pages 58-60 the International Labour Organization (ILO) was able to report that “child labour is no
to persuade the Uzbek government to longer a major concern”1 and will continue Bonsucro
take action. to monitor to ensure that this continues. We continue to support the efforts
of Bonsucro to increase adoption of
After a series of meetings and persistent We apply this collaborative approach its standards and practices for the
lobbying by LDC and other ACME beyond Uzbek cotton. Following concerns sustainable production of sugar. All
members, the Uzbek government granted raised recently about child labor issues relevant LDC facilities and trading entities
the ILO unfettered access to monitor the in Burkina Faso’s cotton harvests, we are Bonsucro certified. Since we do not
country’s cotton harvest in 2013. In parallel, will seek ways to replicate ACME’s joint grow sugar, we take steps to promote
ACME and LDC joined the Child Labour success with the ILO, while continuing to Bonsucro to our suppliers and seek to
Platform, a new collaborative initiative partner with Cotton Made in Africa to verify merchandize Bonsucro-certified sugar
established by the ILO and the UN Global all cotton purchased from the country. wherever possible.
Compact to eradicate child labor in global
supply chains.
1 Major progress on forced labour and child labour in Uzbekistan cotton fields (ILO, November 2018), retrieved from
https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_650697/lang--en/index.htm on 1 April 2019

Our partners continued Fundamentals Pillars of sustainability Platform insights
2018 Stakeholder Views from our

engagements stakeholders
The table below outlines how David Cleary
we work with stakeholders, as Global Agriculture Director,
well as some great examples of The Nature Conservancy
successful outcomes:
Stakeholder Type of Engagement Main Issues Examples / Areas of Interaction
Customers • Meetings • Certification Project with JDE & others p51

• Internet • Project development
Suppliers • Meetings • Codes of conduct Palm suppliers p44

• Forums • Environment Soy suppliers p54
• Human rights Training farmers pp41, 48, 51 & 53
Working with LDC on soy:
Financial • Meetings • Annual and semi-annual ING interaction p35 the conversion conversation
• Regular calls progress discussions
community
I lead The Nature Conservancy’s Like all global averages, that undeniably So for some years we have been working
NGOs • Meetings • Campaigns Nature Conservancy feedback p33
work on deforestation, and depressing fact conceals as much as it to advance the deforestation conversation
• Calls • Progress reports Louis Dreyfus Foundation relationship p36 reveals. In some places we have made to a conversation about conversion: an
• Meetings Sustainable Trade Initiative p53 one of the challenges I face is progress, in other places we are losing integrated approach to managing land
• Roundtable discussions managing my CEO, who looks ground, and that is often down to large use that goes beyond just forests to the
at global deforestation figures social, economic and political trends that conversion of all natural habitats. This does
even large companies like LDC and large not mean freezing agriculture’s footprint,
Employees • Intranet • Diversity and inclusion Diversity study p20 and sees that we don’t seem to NGOs like The Nature Conservancy can but rejigging it.
• Forums • Safety training Choosing community projects p36
be making much progress: the only influence to a limited extent. But
headline figure has been quite not always. Sometimes, as history has Once again, Brazil is the best example: in the
often shown, individuals – and individual Cerrado, a number of very credible studies
stable for years, when we need companies - can make a difference. show there is roughly 25 million hectares
Communities • Open days • Health Community projects p37 to see it going down. of land already cleared that is suitable for
• Volunteering • Education Developing soy logistics p55 We had an intense conversation with LDC soy. Most of that land has been cleared for
• Nutrition this year around soy, which led to what pasture and some of it is marginal land that
I regard as an industry-leading company with the right interventions can be reclaimed
soy policy. Funnily enough, what makes for production. It’s not difficult to game a win-
Peers • Meetings • Pre-competitive Soft Commodities Forum p31 it industry-leading is that it shifts the win future: expand soy into pasture, increase
• Calls collaboration conversation away from deforestation. grazing efficiency to minimize displacement
opportunities of ranchers, and (the really challenging
One of the challenges we face, as piece) unlock the large amount of transitional
a conservation organization, is the funding necessary to help farmers move
unintended consequences of deforestation towards zero conversion direction.
Multilateral • Meetings • Human rights Soft Commodities Forum p31
commitments. Brazil is the best example
• Forums • Environment UN feedback p34
bodies of it. The Amazon, which dominates LDC’s new soy policy, released in 2018,
northern Brazil, is right next to the Cerrado, was the first move by a major trader
a mixture of savanna, woodlands and towards a zero conversion approach.
forests, and where most of Brazilian soy There’s a sense in which that was the easy
Donors • Calls • Project design and IDH partnership on Vietnam project p51 is grown. Both, from our standpoint, are part: as with any policy, implementation is
• Meetings implementation globally significant conservation targets. the real test. But LDC deserves great credit
• Field visits But if a commitment to protect the Amazon for converting to conversion first, setting
only displaces pressure to destroy habitat that vital example which makes it easier
to the Cerrado, rather than eliminating that for others to follow, as they are. We look
pressure, it’s not a win for us. It condemns forward to working with LDC in the years
us to playing whack-a-mole, as pressure to ahead on the hard part – making it happen.
convert habitat shifts from place to place,
in a world of mobile capital, adjustable
supply chains and constantly expanding
demand for commodities.

Our partners continued Fundamentals Pillars of sustainability Platform insights
Fabrice Houdart Geert Bierman

Human Rights Officer, Director, Commodity Finance
United Nations ING Group
Office of the United Nations
High Commissioner for
Human Rights (OHCHR)
LDC and diversity
There is growing awareness

of the plight of Lesbian, Gay,
Indeed, the decisions that companies take
– whether in respect of human resources,
The language in the document is not
prescriptive. It does not say that companies Empowerment for With more than 38 million customers in
more than 40 countries, we believe our
We pride ourselves on financing
sustainability leaders and actively seek
Bisexual, Transgender, and
investment, supply chains and marketing
– have a real and, in some cases, profound
must do everything everywhere. What
it does is encouraging them to find their Sustainable Growth role is to finance and facilitate society’s
shift to sustainability. In other words:
to cooperate with our clients to further
improve their own operations and larger
Intersex (LGBTI) people and impact on human rights of LGBTI people. voice on the human rights of LGBTI people contribute to progress – environmental, supply chains with regard to these topics.
the crucible of human rights and continue on the journey they are on. economic, and social. As a global bank, our
This potential is the reason why the United greatest impact is through the ways we In Louis Dreyfus Company we find a very
violations they face around Nations Human Rights Office felt the need In 2018, Louis Dreyfus Company channel the flow of money entrusted to us. committed partner in this journey. Few
the world. to translate the United Nations Global expressed publicly its support for these ING’s purpose is to empower multinational companies have such a
Compact, of which LDC is a signatory2 Standards. In doing so along with 250 of people to stay a step ahead We make a difference with what we thoroughly felt drive to improve all aspects
since 2010, and the United Nations guiding the World’s largest companies, it sends do finance, such as the billions of euros of their operations and supply chain by
The International Lesbian, Gay, Bisexual, principles on business and human rights a powerful signal that the private sector in life and in business. in energy projects we’ve done. These using their global position to do the right
Trans and Intersex Association (ILGA) into standards on human rights of LGBTI believes it has a stake in human rights of Sustainability is an inherent range from wind farms, solar energy, and thing. Louis Dreyfus Company assists
records1 that in 70 countries, people can people. After global consultations with all LGBTI people. Imagine the power that part of that. geothermal power production; to energy farmers, local communities, logistical
still be arrested for consensual same-sex stakeholders, OHCHR launched the Global these companies have in inspiring and efficiency in buildings and production lines; partners and clients and thereby contributes
relations, in 9, it is punishable by death LGBTI Standards of Conduct for business3 empowering people starting with their to electric vehicles and bio-based plastics; to ensuring that a growing world population
and in 17 countries, bans are in place to in September 2017. own workforce to stand up for equality. to (waste) water treatment and supply has access to healthy nutrition.
prohibit portraying of same-sex relations and circular economy solutions. We do
and LGBTI culture. An estimated 2.8 billion The five standards can be summarized as: This is not only the right thing to do but is this through green loans, green bonds, We are proud of the discussions we have
people – or 37% of the world population also the smart thing to do. The business and other innovative products and with Louis Dreyfus Company on ways
– live in these areas. Unfortunately, these • Respect the human rights of their and economic case for inclusion has never financing constructions. commodity merchants can work with
laws are only the tip of the iceberg as LGBTI workers, customers and been so well articulated. In short inclusive financial institutions to further improve the
LGBTI people face human rights violations members of the public; societies and companies fare better. We make a difference with what we don’t human rights of all involved in the supply
everywhere including in areas with the finance. Every client and transaction is chain, especially in the more vulnerable
most progressive legal frameworks. • Eliminate workplace discrimination We are grateful to Louis Dreyfus Company assessed, monitored and evaluated against countries. We also take pride in our role
against LGBTI employees; for leading by example. It is our hope that the requirements of our Environmental in structuring the sustainability aspects
many others will join LDC in creating a true and Social Risk (ESR) framework to ensure of the first syndicated lending facilities to
In 2019, as we mark the 50th anniversary
• Support LGBTI employees at work private movement for social change on compliance and limit negative impact on Louis Dreyfus Company that has tangible
of the Stonewall riots, an uprising widely human rights of LGBTI people. the environment and communities. This sustainability KPIs embedded in it. The
because having the right policies in
credited with sparking the modern LGBTI way, climate and environmental impact are core of these KPIs, focussing on reducing
place is useless if nobody comes out;
rights movement, we celebrate the Everyone is entitled to live free and equal in taken into account every time we make energy use, water use and disposed
tremendous progress achieved. Yet, if we
• Prevent discrimination and related dignity and rights. And the LGBTI equality financing or investment decisions. We also waste, perfectly fit with ING’s focus areas
are to keep such momentum, consolidate movement needs the help of all companies say ‘no’ to certain companies and sectors, of energy transition, water and the circular
abuses against LGBTI customers,
these gains and expand them globally, it irrespective of their size, location or like with our aim to reduce our exposure economy.
suppliers and distributors – and insist
will require the active involvement of all industry to join the global movement for a to coal power generation to close to zero
that suppliers do the same;
parts of society – including, critically and world where all LGBTI people can find their by 2025. With such a strong match between
increasingly, the business community.
• Stand up for the human rights of right place in the humanity they belong to. Louis Dreyfus Company and ING, we
LGBTI people in the communities We also make a difference when we look forward to a future where fruitful
where companies do business. respond to financing requests with cooperation on sustainable initiatives
“yes, but…”, outlining sustainability will only grow further!
improvements the client must make
first. As we assess potential clients and
deals, our approach is to have a dialogue
and support them in improving their
environmental and social impact where
possible. We believe this is more effective
than excluding clients altogether. Of course
if they don’t meet our standards and aren’t
willing to change, we don’t do the deal.
1 https://ilga.org/ilga-map-sexual-orientation-laws-2019
2 https://www.unglobalcompact.org/what-is-gc/participants/11842-Louis-Dreyfus-Company
3 http://unfe.org/standards

Our At LDC, we empower our
communities people everywhere to create

positive change locally and
globally, in the communities
where we operate.
LDC projects in 2018

Supporting education
Working with local experts,
we want to contribute to the in Wittenberg
Sustainable Development Goals Inspiring over In the context of LDC’s global 2018 Safety,
(SDGs) related to education,
250
Health & Environment Day, the team at our
oilseeds processing facility in Wittenberg,
poverty, health and life on earth.
Germany, took steps to support education
and training in the area.
Working with local experts, we want to students

As part of a longer-term plan to promote
contribute to the Sustainable Development worldwide safe and healthy lifestyles in Wittenberg,
Goals (SDGs) related to education, poverty, our teams supplied local primary schools
health and life on earth. We do this by
creating jobs, protecting the environment, Farmer training center Meals for schoolchildren with books on healthy eating, donated
funds to the local youth football club, and
training and educating communities, and in Gurugram in Vipingo provided personal protective equipment to
supporting health projects. the town’s schoolchildren and youth fire
At the end of 2018, we opened a training Timboni Primary School is a government fighters unit.
Impact in partnership and information center for farmers in school in Vipingo, Kilifi County, near our
As well as encouraging any of LDC’s 18,000 Gurugram, in India’s state of Haryana, logistics facility in the port of Mombasa,
employees to propose initiatives for local where poor social and economic Kenya. Founded in 2016, the school has
action across over 100 countries, our people conditions, and a lack of technical 1,300 pupils, mostly from local smallholder
can submit projects for support from the knowledge, have hampered farmers farming families.
Louis Dreyfus Foundation. in making the most of easy access to
nearby Delhi and Gurugram city markets. With local children often eating only one
The partnership between LDC and the meal per day, feeding its pupils is one of
Foundation allows both organizations to Built near our India office in Gurgaon, the school’s priorities, but it lacks the funds
multiply impacts in a common area of the center will train farmers in new crop to do this. LDC decided to set up a healthy
work: supporting smallholder farmers in technologies and efficient irrigation breakfast program for the pupils to provide
improving their livelihoods through more methods, aiming to increase yields and food for the children. The program includes
sustainable farming. incomes sustainably. It will also provide occasional lessons on hand sanitation and
information on markets, weather forecasts, first aid, to be delivered by LDC volunteers.
LDC’s collaboration with the Foundation will and pest and disease control. Operated
continue and increase over the coming year, by the District Horticulture Office (DHO) Following planning and preparation in 2018,
with the objective that all Foundation projects in Gurugram, the center will provide a the program will launch in 2019. We also
be defined through the local expertise of foundation for horticulture development in hope to develop the relationship with the
LDC people, complementing LDC’s own the region. school, to launch a mentoring program and
community programs. provide other financial support.

Our communities continued Fundamentals Pillars of sustainability Platform insights
Projects with the Fondation d’entreprise
Louis Dreyfus Foundation

in 2018
Improving livelihoods The communities each selected three

açaí producers to visit the nearby Canaticú
Vocational agri-school
in Marajó Island cooperative, to observe best practices and in Ivory Coast
understand how they might apply these in
Communities along the Urinduba and their own community. The exchange visit This project to provide high quality
Araraiana Rivers, near LDC’s future was followed by two workshops involving agricultural education to 30 young people
terminal on Marajó Island, in Brazil’s State specialists from Canaticú, during which the annually in the Savanes district of northern
of Pará, have limited financial resources communities developed an area in their Ivory Coast commenced in 2018.
and poor access to many basic services. respective regions in which to test new
management and farming techniques. Although agricultural development is a
Our project with the Louis Dreyfus government priority in the country, this
Foundation aims to strengthen their With the aim to improve productivity, rural district lacks accessible education
productive capacity, especially in growing quality and profitability, technical centers. By building a school, and helping
açaí fruit, by helping them to work together support will continue through 2019, Sustainable micro-farming to set up its management and curriculum,
for the benefit of the whole community. helping producers as they learn better LDC and the Louis Dreyfus Foundation
This involves helping them to organize their açaí production, and demonstrating its in Rurópolis hope to encourage young people to
work better, training them and providing effectiveness to others. participate in the agricultural sector,
ongoing technical support. Communities in Santarenzinho and while embedding innovative, sustainable
58 5,000
Building on learning from Canaticú, the São Raimundo in Rurópolis city, also farming methods locally.
next step will be to establish an “Açaí in Brazil’s state of Pará, face similar
Port” in each community, as a single hub challenges to those near Marajó Island The project team has so far engaged
to market the fruit, each run by a board (see above). Our approach here, however, with the local community, met a range of
elected by the community. has been to develop 8 micro-farming stakeholders and set up the management beneficiaries trees planted
systems to help increase production, group. Feedback has been enthusiastic,
sales and incomes sustainably. with a shared vision for economic
development in the district.
The project comprises 36 families, with
164 beneficiaries in total. Each family With feasibility and opportunity studies
receives a tailored plan, and training on completed, and a site for the school Agroforestry for the environment in Itatinga
finance, management and agricultural identified, the next steps are to select
practices to help them implement it. We suppliers to design and build the facility, Near our citrus farm in Itatinga, São Paulo and trained to protect local vegetation by
also helped them buy initial inputs and aiming to open the school by the end state, Brazil, LDC employees realized that avoiding the use of chemicals. We have
will continue to provide technical advice. of 2019. with the support of the Louis Dreyfus also built logistic capabilities for product
Foundation, local families could improve delivery to schools and street markets.
A group representing 16 community and their income while recovering degraded
governmental organizations managed the land through an agroforestry initiative in To date, the initiative has 58 beneficiaries,
project set-up and governance, including partnership with the University of São and 5,000 trees (including many native
selecting the beneficiaries. This approach Paulo (UNESP). species) were planted in addition to
ensures close adherence to community a variety of vegetables. Soil quality is
needs and builds collaboration and Starting with 13 families, experts from LDC gradually improving, people’s diets are
capabilities within the community itself. and UNESP trained people to grow food diversifying and their capacity to supply
in a way that not only improves nutrition new markets is increasing.
With half of the training delivered to date, and generates additional income, but also
families are already seeing benefits such benefits the local ecosystem by restoring We will continue to monitor environmental
as improved product quality, sanitation and biodiversity. Beneficiaries are given the and social outcomes with existing
environmental conditions, allowing them trees, vegetables and seedlings necessary beneficiaries, with the next step being
to access new markets in the area. to implement the agroforestry system, to double the project’s reach.

Our communities continued Fundamentals Pillars of sustainability Platform insights
Resilience to climate Agroforestry for

change in Ethiopia sustainability in Ethiopia ”I got the improved cook
stove in July 2018, because
LDC employees are working with the and Uganda I used to have eye problems
Louis Dreyfus Foundation and Inter Aide due to the smoke produced
to help farmers in southern Ethiopia Coffee accounts for 90-100% of farmers’
address three main challenges: income in the Southern Nations, Nationalities by the three-stone fire. I am
and People’s Region of Ethiopia, but shifting very happy about it! Now, I
• Intensifying and diversifying production weather patterns due to climate change are
expected to reduce production by 50% by don’t have any eye problems
• Preserving soil and farm resources
• Coping with the impacts of climate 2050, and are already affecting yields. anymore and I discovered
change many other benefits. I save a
Since 2014, the joint project between LDC,
the Louis Dreyfus Foundation and social lot of wood, I cook faster and
The project’s innovative approach
combines fodder production with soil and business PUR Projet has helped over 2,300 it is safer for my 8 children
water conservation, complemented by a smallholder coffee farmers operate more as it cannot fall over. I also
sustainably and with greater resilience in
range of solutions such as agroforestry and
the face of climate change impacts through
noticed that the smoke that
farmer seed autonomy. This protects soil goes out of the cook stove
fertility and leads to productive capacity agroforestry, planting 159,000 trees for
fruit, timber and shade. chimney keeps away flies
510
and food security.
that are harmful for my
In 2018, our work benefitted 900 farmers, The need for timber connects to a The joint project brought its comprehensive
health issue related to cooking, which is beehives.”
whose farms are now planted for fodder sustainable coffee farming training
production and protected by 120km of traditionally done over a fast-burning wood curriculum to Rwenzori, with 10 modules
farmers improving fire. This demands time to watch the fire, Marta Otiso, Ethiopia
newly built anti-erosion structures. Other covering everything from land preparation
benefits in 2018 include:
soil fertility with generates harmful smoke and consumes to post-harvest practices, and has already
green manure timber quickly, putting pressure on benefitted 800 farmers.
• 1,200 families diversifying their forests. So in addition to growing further
resources for fodder trees, the initiative is building efficient, Tree planting has commenced, with over
• 510 farmers improving soil fertility safe cooking stoves. 50,000 trees already planted to date.
with green manure We are also helping to rejuvenate coffee
• 610 farmers producing and In 2018, the project was expanded to plants, with new plants provided to 33
conserving quality potato seeds the Rwenzori region of Uganda, targeting farmers in 2018.
• 98,000 trees planted smallholder members of the Rwenzori
Farmers Cooperative Union who face Having helped 150 families with cooking
The objective for 2019 is to extend these challenges posed by the lack of shade stoves in Ethiopia, this part of the project
practices to new beneficiaries, under the for coffee plants and struggle to manage is just starting in Uganda.
expert supervision of Inter Aide. their operations.
”I am very satisfied with the

shade trees I received, even
comparing inside my farm,
well shaded coffee trees are
healthier than the ones in full
sun. Many farmers come to
see my parcel, they are often
surprised with the coffee
variety. They find it inspiring.”
Zemenay Birani – Fura cooperative,
Ethiopia

Platform
insights
44
Palm
48
Juice
50
Coffee
52
Cotton
54
Soybeans
58
Freight

Palm Targets 2018

Integrate LDC Produce and Trace 90-100% Publish list of mill
palm policy into maintain detailed of palm supplied suppliers
Palm oil is the most widely used vegetable oil major contracts risk assessments to us back to the
for various reasons, including its versatility and of all main mill
yield, four to ten times higher per hectare1 than suppliers
any other oil. Some estimates put demand Completion: Completion: Completion: Completion:
2018 2018 2018 2018
for vegetable oils in 2050 at double today’s
levels,2 and palm oil production is expected to Status: Status: Status: Status:
Completed Completed Completed Completed
quadruple in the same period.
The challenge is to meet that demand

responsibly, avoiding deforestation and
LDC palm policy Traceability and Supplier engagement
destruction of high carbon stock and
Having launched our No Deforestation, transparency Our work to ensure that all suppliers
high conservation value ecosystems
No Peat, No Exploitation (NDPE) policy in understand, adopt and comply with
for palm cultivation. Traceability is crucial to encourage
2016, our efforts since then have been LDC policy has multiple streams.
to raise awareness among, and secure improvement in supply chains. Recognizing
Palm oil being an essential source of this, since 2017 we have pushed to trace
adoption by, our suppliers. One of these was to launch the Tools
revenue for many farmers, for LDC this is 100% of our palm oil back to mill level, for Transformation Process (T4T) with
a prime example of the challenge to deliver irrespective of how we secure it, and to
With no plantations of our own, we source Earthworm Foundation this year, running
value fairly and sustainably. That’s why report on it. That in itself is unusual in an
palm oil to merchandize in two main ways: training workshops for suppliers to
we choose to address the issue through industry where several operators do not LDC refineries.
partnerships with multiple stakeholders, report traceability scores for commercial
• We receive palm from third party mills at
balancing competing needs expressed trading activities.
our refineries in Indonesia, which refine In 2018, 35 representatives of mills
in SDGs on zero hunger (SDG 2) and
and sell the oil to customers. LDC Traceability Progress 2015-2018 supplying LDC refineries participated in a
responsible consumption and production Our efforts with Earthworm Foundation workshop on details of our policy and NDPE
(SDG 12), by aiming to: (formerly known as The Forest Trust) involve
• We purchase palm oil from other Indonesia Refineries commitment. Suppliers then completed
third parties, which we sell on to gathering and verifying GPS coordinates detailed questionnaires, to analyze the
•• Preserve forests in their vital role in from all entities in our supply chain back to,
customers through our commercial H2 2018 100 profile of their operations and highlight
our global ecosystem and including, mill level. We publicly report
office in Singapore. areas of potential concern. Subsequent
these results every six months. H1 2018 100
workshops, which we aim to hold in 2019,
•• Maintain and encourage biodiversity H2 2017 100
With this approach, we interact with a will cover the technical elements of our
large range of different operators, and In 2018, we hit our target to achieve sustainability policy, such as definitions and
•• Help local communities to develop H1 2017 100
palm oil purchases by our Singapore teams 90-100% traceability overall and, in the standards for High Conservation Value and
through access to higher incomes second half of the year, our Singapore H2 2016 100
often involve several intermediary entities High Carbon Stock.
between the mill and ourselves. We treat team achieved 90% traceability for its H1 2016 100
•• Prevent displacement of communities external trading book compared to 66% in
this as an opportunity to seek adoption of FY 2015 100 In parallel, we continue to engage suppliers
that live in forested areas 2015. These achievements demonstrate
our policy, to influence supply chains, and with a raft of measures established in 2017:
to trace palm oil back to mill level. the impact we can have by working with Singapore Commercial
others toward collective goals. • Screening all new suppliers for
H2 2018 90 sustainability risks
In 2018, we also expanded the range of • Ongoing risk assessments using Global
data we publish, allowing others to hold H1 2018 89
Forest Watch and other tools
us to account and adding: H2 2017 87
• Embedding our policy into major
H1 2017 86 contracts that were not already covered
• Lists of all mills supplying us with by a supplier NDPE commitment and are
H2 2016 75
palm oil considered high risk
• A breakdown of purchases by H1 2016 79
• Operating our engagement and grievance
LDC division, origin and product FY 2015 66 process where there are allegations of
• Our grievance protocol and list non-compliance with our policy
of grievances • Engaging suppliers with on-site field
Global
visits, such as those we completed
H2 2018 94 with Earthworm Foundation in Indonesia
and Guatemala
H1 2018 93
H2 2017 92
H1 2017 92
H2 2016 85
H1 2016 91
1 RSPO, A Shared Vision – 100% Sustainable Palm Oil in Europe: A Snapshot of National Initiatives, 2015 FY 2015 81
2 ibid.

Palm continued Fundamentals Pillars of sustainability Platform insights
Certifications obtained by LDC Palm:

••RSPO
••ISCC
••Good Manufacturing Practice
(GMP+B2 and B3)
••Food Safety System Certification 22000
••ISO9001
••Halal
••Kosher
We also upgraded our analytical capabilities

in supplier profiling in 2018, adding data
The list of suppliers that have been subject
to our grievance process, and the decisions
2019 and beyond New Targets
on land ownership and concessions held taken as a result, are published on our
Driving traceability remains a high priority,
by each supplier. We completed risk website every six months. Trace 90-100% of the palm
and we are working with suppliers to our
assessments of our main suppliers and supplied to us, back to the
refineries to develop a methodology to
continue to maintain and improve these, mill
and will do the same for new suppliers as Certified sustainable palm achieve traceability to plantation level,
for which a pilot is underway. This will
we add them. Target:
LDC continues to source and sell palm be supported by remote sensing
monitoring, especially for direct suppliers 2019
As explained in previous reports, including oil that complies with Roundtable
for Sustainable Palm Oil (RSPO) and to our refineries.
our policy in all contracts is ideal but Maintain detailed risk
extremely difficult, for instance in the International Sustainability & Carbon
Certification (ISCC) standards, as part of Building on the T4T work commenced assessments of all our
case of spot or one-off purchases. We main suppliers
our ultimate goal: No Deforestation, No in 2018, we will work with Earthworm
will therefore continue with our approach
Peat, No Exploitation. Foundation to expand the training program
to incorporate our policy to the extent
on both existing and new subjects, where Target:
possible, especially where suppliers have
In 2018, we were able to increase certified a need is identified. Our objective is to 2019
no NDPE policy of their own. However,
palm oil sales by 17% year-on-year, and by drive further engagement, as we continue
given our progress in traceability and
1500% compared to 2012. to apply our verification, monitoring and Conduct and sponsor at
transparency, this work is now an integral
grievance processes toward our primary least 2 technical workshops
part of our risk profiling rather than an
NDPE goal. on NDPE commitments
independent workstream with its own
time-bound target. Sold volumes (MT) with key suppliers
In partnership with the Louis Dreyfus
2018 478 Foundation and one of our suppliers in Target:
Managing allegations 2017 410
South Sumatra, Indonesia, a new project 2019
will begin in 2019 to support the resilience
and grievances 2016 375 and sustainability of smallholder farmers in Develop methodology for
2015 266 the country, who account for approximately traceability to plantation
As mentioned above, our grievance 40% of palm plantations by area3 and yet
process serves to deal with cases where a 2014 210 level for high risk areas
often have the lowest yields.
supplier is said to have violated LDC policy. 2013 180
We review the allegations and publish 2012 30 Given the imperative to produce more palm Target:
updates on our website to allow feedback oil without deforestation, training these 2019
on our approach. farmers, helping them to improve yields
Certification is and will remain an important sustainably and facilitating their access Report publically twice-
We believe this process sets a rigorous tool, but it is only one of many to ensure to certification will be crucial. Partnering yearly on traceability, mill
standard for several reasons. Firstly, if an our sourcing is sustainable, especially since with a supplier allows us to reach farmers lists and engagements
issue is raised about one mill or plantation, sales volumes depend heavily on customer with whom we have no direct contact in conducted through the
we assess the whole supplier to group demand. our palm operations. If this pilot project is LDC grievance process
level. Secondly, if a decision is taken to successful, we plan to replicate it in other
remove a supplier from our approved geographies. We will report on this project Target:
supplier list, LDC will neither buy from, nor in our next report. 2019
sell to, that company. Thirdly, removal from
our approved supplier list for palm-related
grievances means that LDC no longer
trades with that company for palm or any
other products. Lastly, resuming trade with
LDC is allowed only when suppliers prove
they are addressing grievances.
3 IUCN, 2018

Juice Targets 2018

Secure Rainforest Secure Rainforest Alliance
Alliance certification certification and Sustainable
LDC’s Juice Platform is the for 14 more farms Agriculture Initiative Platform
third largest producer and Gold Grade recognition for
merchandizer of juice worldwide, 29 farms overall
and in 2018 celebrated 30 years Completion: Completion:
2018 2018
in the business.
Status: Status:
Completed Missed
From our 38 citrus farms in Brazil, through

to our juice merchandizing activities in
• Multiple internal Work Accident
Prevention Week sessions, with
Certified sustainable Chain of custody
destination markets around the world, we over 1,400 participants
Seeking Rainforest Alliance certification is To ensure supply chain traceability from
have built sustainable solutions into our
an excellent approach to meet responsible LDC farms certified by the Rainforest
operations across the value chain. • Our annual, global Safety Day (see
production goals in the juice value chain. Alliance, our processing plants in
page 19), with the theme “Our safety
In accordance with LDC’s collaborative is my priority”, and regular Safety Matão and Bebedouro, our Santos port
Our operations are Rainforest Alliance terminal, and our destination terminal
approach, we work closely with many Dialogue meetings with industrial
CertifiedTM at two levels: farm-level in Ghent, Belgium were all certified
stakeholders to address issues relating to: and farm teams to reinforce safety
certification and chain of custody between 2015 and 2016.
procedures and best practice
certification, with strict standards covering:
•• Decent work & economic
development – creating jobs, training • Weekly farm safety reviews, raising
• Effective planning and management
our people and keeping them safe awareness among farm teams
• Biodiversity conservation A dedicated Group Administrator ensures
Biodiversity and
and involving them in identifying
•• Deforestation, conversion & improvement opportunities
• Natural resource conservation that all certified sites meet Rainforest conservation
• Improved livelihoods and human wellbeing Alliance standards at all times. A
biodiversity – preserving indigenous
wildlife around our facilities • Environment Week, Quality Week and comprehensive resource management Beyond certification, LDC takes great care
Workers’ Week at our processing and plan is also in place to reduce GHG to preserve wildlife and biodiversity. As
•• Responsible production & clean water logistic sites, recognizing successes emissions and water and energy previously reported, we are in the process
– reducing water consumption and and raising awareness consumption, manage solid waste and of creating Biodiversity Protection and
Farm-level minimize the use of any potentially toxic Conservation Plans for each of our juice
minimizing the use of crop protection
and phytosanitary products • Agricultural technical meetings, reaching crop protection products, in line with the farms, with detailed measures to:
We met our target to certify 14 strict list of products permitted under the
500 employees on best practices in additional LDC citrus farms in 2018,
Our 2018 Juice Sustainability Report agriculture, pest control, leadership scheme. We also leverage Rainforest • Control invasive species
bringing the total to 29 overall, which Alliance frameworks to work with local • Reduce road traffic in the area
outlines our efforts in detail, with several and Rainforest Alliance standards represents 80% of all the farms we
highlights included here. communities, for instance by expanding • Conserve soil
manage. We are now working to certify our environmental education program. • Educate employees
• Not From Concentrate (NFC) field the remaining 9 farms.
days and workshops, focused on • Monitor emissions from farm equipment
Safety, quality and improving fruit quality through collective In recognition of this work, 22 farms were • Create ecological corridors between
agricultural best practice discussions among harvest, plant fruit Expansion of Rainforest Alliance
validated in 2018 as Gold Grade according
to the Sustainable Agriculture Initiative
forest areas
reception and origination employees Certified™ farms in the last 5 years Platform’s (SAI Platform) standards. This 29 farms now have plans in place, with
Employing approximately 8,000 people at
We also continue to operate our Programa means they have attained the highest approximately 9,100 hectares marked
peak season, primarily in Brazil, involves a
Compartilhar to share our know-how RFA
29 SAI Platform standard using its Farm for conservation. 80% of this land is
massive commitment to training in order to Total
with external partners and third party fruit Sustainability Assessment evaluation tool, designated for medium or advanced
run our operations as safely and efficiently
suppliers, including training on LDC policies 2018 15 14 which creates a single, global standard conservation, which entails great benefits
as possible.
and sustainable production methods. 120 2017 11 4 based on multiple sustainability schemes. for wildlife, such as feeding and breeding
people were trained in 2018, including 78 While we missed our target to achieve areas for animals. We are in the process of
In 2018, the Juice Platform delivered over 2016 5 6
suppliers who represent 70% of our fruit Gold Grade at 29 farms, the remaining developing the remaining plans.
1,600 training sessions covering a range of
supply from third parties. 2015 1 4 7 attained Silver, which remains a good
safety, quality and agricultural best practice
topics. These included: 2013/14 1 achievement. We have renewed our target
to achieve Gold in 2019.
2019 and beyond
We also run an environmental education
• 370 sessions for over 3,100 program that brings local schoolchildren, Over the next year, we will examine next
employees on our Agricultural more than 1,200 in 2018, to visit our farms, steps for Rainforest Alliance certification
Quality Management System with training, farm tours and seedling and biodiversity plans for the farms that
planting activities organized for them. do not yet have them, and have a goal
• 169 training sessions for 1,239 to reach SAI Platform Gold Grade at
employees to fully implement our seven farms.
Industrial Quality Management
System at our sites

Coffee Targets 2018 New Target

Increase the volume Set and publish Set and publish
of certified coffee we targets for our targets for our
Coffee generates incomes for sell to 17% responsible sourcing responsible sourcing
millions of people. Many of them are program program
smallholder farmers in remote rural
areas, who produce more than 70% Completion: Completion:
2020 2018
of global exports amounting to over
US$20 billion annually.1 Status: Status: Completion:
Removed Amended 2019
Owing to the reality of climate change

effects, however, production is becoming
Our responsible coffee sourcing program
takes a holistic approach with three
Stream 2: Supporting Stream 3: Sourcing
more difficult for farmers to the extent that complementary streams: farmers through projects responsibly grown coffee
it may be below current levels by 2050.2
1 Boosting production of certified and In order to make global supply more Sourcing responsibly grown coffee is
As a leading merchant of green coffee, we verified coffee sustainable, we need to reach more a natural continuation of our first two
are well placed to help smallholder farmers 2 Supporting coffee farmers through farmers than we can if we focus streams. We want all our coffee to be
address the challenges they face, and projects tackling specific local issues exclusively on certification. Our projects traceably and responsibly sourced. By
make their production more sustainable 3 Sourcing responsibly from farmers who working directly with farmers in the field, seeking to source certified or verified
and profitable. This contributes to achieving adopt environmentally, economically such as those in Vietnam (see below) coffee, and supporting smallholder
SDGs on: and socially sustainable practices, and East Africa (see page 41), allow us farmers directly, we encourage sustainable
irrespective of verification or certification to extend our reach to farmers for whom practices throughout the value chain and
•• Economic development certification may not be accessible. therefore build up the supply of responsibly
•• Alleviating poverty Aiming to be as transparent as possible produced coffee.
•• Protecting life on land about this approach, we published our first
•• Climate change Coffee Sustainability Report in 2018 with Launched in 2015, our Supplier Code of
details on our work in this area. The report Conduct is the key driver of this work
Merchants in LDC’s position who source is available on our website, and we have stream, covering human rights, health
from thousands of smallholders, often included an overview in this chapter. Promoting sustainable & safety, environmental and business
through numerous intermediaries, have
complex supply chains and face increasing
land management in integrity issues (such as anti-bribery
demand for traceable, responsibly- Stream 1: Certified and Vietnam measures). Farmers are expected to
commit to improve their practices in these
produced coffee from end consumers. verified coffee respects and, from the beginning of 2019,
LDC has partnered with the Sustainable we have introduced measures to create
And with multiple certification schemes Despite the challenges posed by the Trade Initiative (IDH), Jacobs Douwe ”We have seen so much specific, corrective action plans where a
available, roasters treat responsible proliferation of certification schemes, they Egberts (JDE) and Syngenta since 2016, improvement since the supplier is found to have breached the
sourcing as a must, meaning the market is remain one of the most powerful indicators through the Initiative for Sustainable training program started. Code of Conduct.
unwilling to pay a premium for certification. of sustainability in the coffee industry, in Landscape Approach (ISLA) in Lam Dong,
Central Highlands, Vietnam.
The impact of climate
Sustainability and traceability are therefore
response to increasing consumer demand
particularly among millennials in North change will compel farmers Looking ahead
prerequisites to operate in coffee. America and Western Europe. Between 2016 and 2018, the initiative to adopt agricultural In 2019 we will focus on building up
trained 2,500 farmers to adapt to climate
practices more in line with our sustainable sourcing program and
Responsible sourcing at Certified and verified sustainable coffee
therefore remain a focus for a significant
change, helping to make them more
resilient, productive and environmentally international standards. LDC complementary projects to support
LDC: a holistic approach portion of our sourcing. At the same time, sustainable. Its success has led the is committed to helping smallholder farmers. We have amended
our target to publish specific, time-bound
owing to the shift of focus for the industry partnership to extend the program until farmers achieve this positive
2021. The aim is to reach a further 3,000 targets for our responsible sourcing
Guided by its purpose of fair and outlined above and to the headway we
sustainable value creation, LDC chooses are making in our other two streams of farmers who produce approximately development.” program, realizing that we are too early in
18,000 tons of coffee annually from 4,800 the process to launch the program as a
to go beyond certification in approaching work, we have decided to discontinue
hectares of land in the country’s Đák Lák, LDC Senior Coffee Agronomist formalized system. We now aim to establish
these complex issues, by working directly our formal sales targets for certified and
Đák Nông and Gia Lai provinces. Tin Nguyen, who now works on this specific targets by the end of 2019.
with smallholder farmers. By means of verified coffee.
project in Đák Lák, where he grew up
initiatives addressing specific local issues,
Covering topics such as soil regeneration, on a coffee farm.
we aim to increase their income and
productivity through sustainable practices. irrigation, intercropping for biodiversity,
growing trees to shade coffee plants
and minimizing pesticide use, the
program uses demonstration plots that
allow farmers to see the benefits for
themselves, with 30 such plots already
established to date.
1 Hivos (2018), Coffee Barometer 2018 (citing Oxfam (2002), Mugged. Poverty in your coffee cup)
2 World Coffee Research (2017), Annual Report 2017, Creating the Future of Coffee

Cotton Targets 2018 New Targets

Buy 25% more Purchase 125% Increase our Increase Train 10,000 Train 100,000 Increase Increase Purchase
Better Cotton year- more Better BCI Kazakhstan our BCI farmers in farmers in Better Cotton Better Cotton 50% more
As a natural fiber, cotton has significant on-year (using 2013 Cotton than in partnership to Kazakhstan Maharashtra, Zambia purchased purchased Better Cotton
sustainability advantages over synthetic as a baseline) 2013 700 farmers partnership India compared to over previous than in 2018
alternatives like polyester, and can be to 700 2018 by 10% year by 10% (using 2018
farmers using 2018 as as a baseline)
promoted as a responsible way to Completion: Completion: Completion:
a baseline
2018 2018 2019
clothe the world’s growing population.
Cotton supply chains, however, are not Status: Status: Status: Target: Target: Target: Target: Target: Target:
Completed Completed In progress 2019 2019 2020 2019 2020-2023 2023
without challenges.
Leveraging LDC’s leading industry position,

we work to address a number of these,
In 2018, we exceeded our one- and five-year
targets for purchasing BCI-certified cotton
Reaching 10,000 farmers Renewed connections in 2019 and beyond
including those relating to SDGs on: by a wide margin, through a massive leap in India Zambia We are now refreshing our targets for the
in purchases from US origins and a steady
next five years. Our work with BCI will
•• Decent work and economic upward trajectory in other areas. In 2018, we partnered with the Better In 2013, we reported with great optimism continue and we have new targets for
development – improving working Cotton Growth and Innovation Fund, on a project that our ginning joint venture purchasing BCI-certified cotton, as well as
conditions and productivity, The leap in US purchases is the result of funded by the Sustainable Trade Initiative in Zambia had started in partnership with country-specific targets for Kazakhstan,
particularly at farm level promotional efforts in 2017 to show brands (IDH), and Indian cotton ginner Puneet CMiA, and which subsequently ran into India and Zambia.
and retailers first hand the excellent work Enterprises to share sustainable agricultural difficulties.
•• Human rights and gender equality – that many US farmers do. As we had hoped, practices with 10,000 smallholder cotton
eradicating child and forced labor, and increased demand for Better Cotton products farmers in Maharashtra, India. That project received new life in 2018,
improving the position of women in allowed us to increase our own purchases. as we took 100% control of the local
smallholder farming communities The aim is to help these farmers tackle ginning operation, with 5 gins and 90,576
•• Responsible production and water Addressing labor issues some of the social, economic and climate-
related challenges they face, such as
smallholder farm suppliers, and reopened
the local partnership with CMiA.
Partnering BCI
scarcity – helping farmers cut back in Uzbekistan and Burkina gender inequality, dependence on credit in Kazakhstan
water and chemical usage and unpredictable weather conditions. Funded by Cotton Expert House Africa,
Faso and learning from past challenges, the LDC has been the implementing
Given these issues mostly arise in Halfway through the project, many new project will train 100,000 farmers on partner for BCI in Kazakhstan since
agriculture, a stage of the supply chain that We are pleased to report on the excellent participants have already experienced the agricultural best practice over the next 2016. The aim is to increase the
we do not directly manage, we partner with results of the ILO’s work with the Uzbek benefits. Cost of cultivation has decreased 3 years, aiming to help them improve volume of BCI cotton produced and
other actors and experts to address them, government to eliminate child labor from by 30 to 35% on average among their livelihoods while reducing their raise the origin’s sustainability profile
particularly the Better Cotton Initiative (BCI), cotton farming activities in the country, participants, and the quality of cotton environmental impact. We have already with spinners around the world.
the International Labour Organization (ILO) supported by LDC and other ACME harvested has also increased, with the reached almost 50,000 farmers to date.
and the Association of Cotton Merchants in members over the last five years (see prospect of better prices on the horizon. We began with four agronomists
Europe (ACME). page 31). After the 2018 harvest, the ILO Alongside this formal project, LDC is dedicated to the project, working
reported that child labor is no longer a By March 2019, we expect to have trained looking to develop additional programs to with farmers in the southern region
concern in Uzbekistan, though they will
Advancing responsible continue to monitor the situation.
all 10,000 farmers in techniques such as
intercropping for biodiversity, in the proper
help communities around our operations.
For example, we have started to work
of Makhtaaral, and with three years
of financial support from the German
production That said, our attention is now drawn
use of fertilizers and pest control methods, with local schools to increase capacity, Development Agency (GIZ). We now
and on how women can participate fully teach parents about the importance of employ eight dedicated agronomists
Promoting the BCI’s comprehensive to concerns about child labor in Burkina in farming. attendance and move communities and managed to reach 334 farmers
sustainability standards, working with them Faso. Although Cotton Made in Africa away from relying on child labor. Other by the end of 2018.
on local projects and purchasing more (CMiA) certifies all the cotton we originate We hope to report on the successful efforts include:
BCI-certified cotton are the main ways in from the country, and while we support completion of this initiative next year. The project helps farmers to apply
which we influence production methods programs that train local farmers to avoid • Supporting borehole drilling for clean BCI principles, entitling them to
and water usage, since we originate cotton involving children in hazardous work, we water and constructing latrines certification, and then monitors
from traders and ginners at origin, and only will also investigate how best to work with • Helping members of women’s clubs compliance through audits. In 2018,
in Zambia from thousands of smallholders our suppliers and the ILO to that end. with start-up capital for their new, over 6,000 tons of BCI-certified
+140%
who supply the gins we operate there. income-generating ideas seed cotton was produced in the
• Educating farmers on the importance region, more than double the volume
of insurance, in case of weather events produced in 2017.
Purchases of BCI cotton 2015-2018 or pest infestations
BCI cotton purchased (MT) Despite the mandatory end to GIZ’s
over 2017 three-year funding, LDC continues to
+824% over 2013 2018 212,528 drive the project forward and we are
2017 88,449 optimistic that we will succeed
2016 72,658
in bringing the targeted total number
of 700 farmers on board by the end
2015 91,614 of 2019.

Soybeans Targets 2018

Ensure all LDC suppliers Launch FEFAC- Train all relevant LDC Communicate our new
in Brazil are registered approved certification employees on our new soy policy to all major
Soybeans are the world’s most in CAR (Brazilian Rural scheme soy policy suppliers
efficient source of protein per hectare1 Environmental Registry)
and an important source of animal
feed, biofuel and food products for Completion: Completion: Completion: Completion:
2018 2018 2018 2018
human consumption.
Status: Status: Status: Status:
Amended Completed Completed Amended
Production of soy has grown tenfold in

the last 50 years2 and demand is expected
Soy Sustainability Policy Progress in Brazil Traceability being fundamental to these
activities, in 2019 we aim to trace 100%
to continue increasing rapidly, given Reporting through of the soy we originate in Brazil to farm
predictions of rising global consumption
As mentioned in last year’s Sustainability
Report, we launched LDC’s global Soy
the SCF Beyond training employees and publicizing
our new policy among suppliers, LDC
level. Since this wider traceability work
of meat and food overall. Yet it is crucial goes beyond how we were expecting to
Sustainability Policy in 2018, reinforcing engaged in several new projects in the
that this demand be met without resorting use suppliers’ CAR registration we have
the company’s No Deforestation, No Peat, country in 2018.
to deforestation or conversion of high Our work with the SCF to conserve amended that target to be included in
No Exploitation commitment and focusing
value ecosystems. the Cerrado is outlined on page 31, this work.
specifically on soy production. In trying to motivate growers to preserve
focusing on a process to trace and native vegetation areas that they are legally
While our soy origination activities span report on any soy procured, directly Fair and sustainable development
Our policy differs from others in the entitled to clear for soy farming, we have
North and South America, the main land or indirectly, from the Cerrado, Environmental impact studies and licensing
industry in its intention to engage and identified areas of land that are presently
conversion issues arise in relation to particularly in 25 municipalities are at the heart of LDC’s major project to
influence all value chain actors to prevent degraded or used for pasture to encourage
soy purchased from Brazil, Argentina defined as high-risk areas. develop new export routes in northern
the financing of, or participation in, the expansion of soy production there, and will
and Paraguay. Brazil, along the Tapajós, Amazon and Pará
conversion of native vegetation in areas look to set up credit lines to facilitate this
As part of this, LDC will publish the rivers. Our own studies lasted two years,
deemed to be of high ecological value, in 2019.
Particular concerns involve minimizing following figures twice a year starting covering impacts on communities, soil, air,
such as the Cerrado biome.
damage to richly biodiverse areas such in 2019: water, flora and fauna, and we now await
Alongside the SCF’s work (see left),
as the Cerrado, Gran Chaco and Amazon the final stage of government approvals,
In 2018, we communicated our policy to we have continued to participate in
biomes. To avoid further deforestation and • Percentage of soy sourced from which comprises a year of analysis by
major suppliers in the main municipalities the Cerrado Working Group – a multi-
restrict soybean cultivation to land that has the Cerrado their experts.
where we originate. This process will stakeholder group whose mission is to
already been cleared, it is crucial that all • Percentage of soy sourced from
continue in 2019, and has been integrated eliminate conversion of native vegetation
soy value chain operators work together the 25 municipalities identified as Creating economic development and
into our workstream on supply chain in that region in the shortest timeframe
to source only from appropriate areas. high risk positive local community impacts is also
mapping and financial incentive creation. possible, reconciling social, economic and
• Percentage of direct and indirect essential, and as the project will introduce
The original target for communicating the environmental interests.
LDC therefore works with a range purchases from those 25 new vessels and increase river traffic, we
policy to all suppliers has therefore been
of stakeholders towards responsible municipalities want to minimize risk to local communities
amended to reflect the need to focus on We also remained active in Grupo
consumption and production (SDG 12) who have long used the river for their own
municipalities defined as having a high risk de Trabalho da Soja (the Soy Working
goals to: The SCF will also publish the project transport. Accordingly, we have already set
of deforestation. Group), which focuses on implementing
parameters, including the criteria up an educational program on navigational
the moratorium on growing soy in the
•• Prevent deforestation and conversion for what constitutes a “high risk” safety in partnership with the Brazilian
Targets for 2019 connected to Amazon by preventing the trade of
of land with high conservation value municipality, and leading NGO Navy, and distributed lifejackets, reflective
implementing the new policy include: soybeans cultivated on areas deforested
Proforest will oversee the whole tape and guidance to local owners of
since 2008. LDC has been a signatory
•• Safeguard water sources and process and make recommendations small vessels.
• Incentivizing producers to preserve areas to Brazil’s Soy Moratorium since 2006.
biodiversity for any improvements.
of native vegetation, even if they are
Certification in Brazil
legally entitled to clear it Similarly, we continued to take part in
•• Drive more sustainable soy 2018 saw the successful launch of LDC’s
Associação Brasileira da Indústria de Óleos
production across the value own Sustainable Agriculture certification
• Tackling land use challenges in the Vegetais (ABIOVE), a group that brings
chain globally scheme in Brazil, fully approved by the
Cerrado through the World Business together oilseed processors and merchants
International Trade Centre as meeting all
Council for Sustainable Development’s and monitors their implementation of
FEFAC (European Feed Manufacturers’
(WBCSD) Soft Commodities Forum anti-deforestation and conversion goals,
Association) certification standards, including
(SCF) (see box right) and the Cerrado including the Soy Moratorium and Cerrado
those relating to High Conservation Value
Working Group Working Group.
areas. As a next step, in 2019 we will begin
working with farmers to build a certified
• Mapping soy supply chains to farm-level, As part of these efforts, we contributed
supply chain thereby linking our sustainability
and monitoring sourcing activities across to the launch of Agroideal, a free online,
ambitions with customer requirements.
Brazil and Argentina intelligence system that helps industry
operators make informed decisions
• Sourcing certified sustainable soy, where and territorial assessments relating to
possible and in line with demand investments in soy.
1 European Soy Monitor, 2019
2 WWF, The Growth of Soy, Impacts and Solutions, 2014

Soy continued Fundamentals Pillars of sustainability Platform insights
Argentina
Certified Sustainable Biodiesel (KMT)
2018 ISCC 330

2017 2BSvs 415 EPA 213
2016 390
2015 130 New Targets
2014 60 Progress in Argentina Certification in Argentina
Over 50% of the soybeans we originated
Paraguay Progress in Paraguay
from Argentina in 2018 were 2BSvs Report Brazilian soy
As part of a detailed supply chain mapping Sustainable Soybeans (KMT) Although Paraguay represents a smaller origination figures twice
Sustainable Soybeans (KMT) certified for EU biofuel sales. As import
and risk assessment exercise in the proportion of our soy activities, and in on SCF platform
duties imposed by the US government
municipalities from which LDC sources 2018 66,306
some cases raises a different set of
made EPA (Environmental Protection
2018 2BSvs 1,483 soybeans directly from farmers in the issues, we have worked closely with
Agency) certified biodiesel from Argentina 2017 80,649 Target:
2017 2BSvs 994 EPA 1,145 country, we identified: other operators in the sector to promote
financially unattractive to customers, we 2019
2016 86,781 sustainable practices among local
2016 2,000 ceased selling it in 2017. Although we
• Native forest in each municipality 2015 72,445 businesses and are now exploring
remain one of the largest exporters of Launch a long-term credit
2015 780 • Any record of recent deforestation how to encourage our soy suppliers
soybean biodiesel from Argentina, our total 2014 3,000 financing facility that
• Legal categorization of the land to participate in a certification scheme.
certified volumes are lower than in past incentivizes expansion
according to the Argentinian Forest Code
Certified Farms years (see graph left). to existing pasture and
Certified Farms Exploration started with LDC joining
The results of this exercise showed that the Paraguay United Nations (PNUD) degraded land
2018 2BSvs 5,564 Aiming to sell more certified soy in the
the risk level for our Argentina supply chain 2018 163 Green Commodities Program, to give a
future, in 2018 we analyzed our supply chain Target:
2017 2BSvs 4,200 EPA 5,800 is very low. merchant’s perspective on industry issues
against the FEFAC-approved Sustainable 2017 160 2019
and barriers to sustainable development,
2016 5,082 Feed Standard (SFS) and will now seek
Looking beyond our existing supply chain, 2016 126 such as the lack of clarity on land
2015 1,390 certification to begin sales of certified Trace 100% of direct
and keen to ensure the sustainability of 2015 95 ownership in many rural areas.
soybean meal for the 2019-20 harvest. purchases in Brazil to
2014 580 future purchases, in 2018 we contributed
2014 3 farm level
to the Agroideal multi-stakeholder group Participation in this program may also
Alongside certification and biodiesel
that is identifying areas where expanding provide opportunities to promote
Certified Hectares (Kha) efforts, we have worked with a wide group
soy farming is suitable in Argentina, Certified Hectares (Kha) sustainable practices among farming Target:
of stakeholders to set a default greenhouse
in order to avoid any deforestation or cooperatives that engage with PNUD, 2019
2018 2BSvs 1,780 gas (GHG) emission value for Argentinian
environmental damage. 2018 55,200 accelerating progress across the country.
soybean cultivation, in order to make GHG
2017 3,500 Map areas suitable for
savings from biodiesel clear to the market. 2017 54,694
We are also looking to conduct proprietary
2016 2,900
mapping of other areas of the country, 2016 28,693 2019 and beyond soy farming expansion
in northern Argentina to
2015 1,370 particularly in the north, to identify 2015 21,009 avoid deforestation and
660 opportunities to convert existing pastureland Over the next few years, we will continue
2014
2014 5,000 environmental damage
and subsequently incentivize this approach, to build on LDC’s global Soy Sustainability
similar to our efforts in Brazil. Policy through mapping, traceability and
Warehouses (own) Target:
certification efforts, as well as farmer
2019
awareness and incentive schemes, to
2018 2BSvs 11 protect land of high conservation value.
Communicate our soy
2017 2BSvs 10 EPA 10 policy to all major suppliers
In 2019 we will certify farmers and secure
2016 9 in high risk municipalities
volumes through LDC’s new Sustainable
2015 4 Agriculture certification scheme in Brazil,
2014 4 and launch a long-term credit financing Target:
facility. We will also take several steps 2019
to improve our mapping and monitoring
Warehouses (third party) capabilities across Brazil and Argentina, and
start reporting Brazilian sourcing figures
2018 delivered 2BSvs 12 23 through the SCF platform to help protect
2017 2BSvs 1 EPA 19 high-risk areas.
2016 15
2015 1
2014 0

Freight Targets 2018

Publish 2018 Complete study Complete study Contribute to SSI
emissions on chartering on chartering study on ships of
Owing to high volumes of traded resulting from wind propelled dual LNG/gasoil the future
goods travelling by sea, shipping LDC freight vessels propelled vessels
presents important pollution activity
issues. Completion: Completion: Completion: Completion:
2019 2018 2018 2018
Status: Status: Status: Status:
Completed Amended Amended Amended
Exhaust emissions from marine diesel

Advancing industry goals LDC’s freight impact
799 56.3
engines account for a large majority of
8.1
the transport sector’s sulfur oxide (SOx)
We support the International Maritime To provide transparency on how we are
emissions, and for a significant portion of
Organization (IMO) in taking bold steps to working toward IMO goals, last year we
nitrogen oxide (NOx) and complex particulate
reduce permissible SOx emissions from set ourselves the goal to report on our ships chartered, million tons of cargo
matter releases, harmful to human health
3.5% m/m (mass per mass) to 0.5% m/m annual emissions data. of which 700 bulk average age of shipped, of which
and the environment. Marine carbon
by January 2020 (with some special local carriers & vessel in years 52.8 by bulk carrier
dioxide (CO2) emissions remain the most
zones capped at 0.1%), and to making NOx Our freight activity in 2018 and its 99 tankers & 3.6 by tanker
challenging issue, representing around 2%
reduction technology compulsory on board environmental profile breaks down
of global greenhouse gas emissions.1
certain newly built vessels. as shown here to the right.
Although ocean freight remains the most
We are committed to complying with these LDC’s chartered fleet is on average 8.1
environmentally friendly way to move
76%
regulations and are also actively taking steps years old, compared to a global average
5.14 72%
cargo at scale, there is room to make a
to help the industry meet IMO goals to fleet age of 9.8 and 12.33 years for bulk and
vast difference if leading companies like
reduce CO2 emissions intensity per ton-mile tankers respectively.7 We strive to charter
LDC take responsibility for driving positive
by 40% by 2030, and by 70% by 2050. younger, more energy-efficient vessels.
change ahead of long-term public targets. of time charted average EVDI™ 6
of vessels under
In parallel, we continue to work with top Assessing our chartered fleet against the vessels with A-D per vessel 5 EVDI
As one of the world’s largest chartering rating
tier ship owners, shipyards, equipment standard European energy efficiency scale,
entities today, we are committed
makers and weather routing companies using the Rightship GHG emission-rating
to making every effort to operate
to optimize our fleet through better tool, we can see that over three quarters
responsibly, and to help create a more
technology, including: of our fleet rates in the A-D range. This is
sustainable shipping industry, by helping
a slight improvement from last year.
to achieve SDGs covering:
• Hulls with less resistance and
special paint Overall emissions declined by 5% year-on-
•• Climate change – reducing
• More efficient propellers and rudders year in 2018, to an average of 5.1 grams of Fuel Oil Consumption under GHG rating of vessels 20185
greenhouse gas and other emissions
• Reducing adverse weather days CO2/ton-mile, through efforts to charter a Time Chartered vessels (MT)
more energy-efficient fleet and employ the units
•• Decent work – providing safe, healthy
Throughout 2018, LDC increasingly relied most efficient vessels on longer voyages, 2018
working environments and promoting GHG A 5
on innovative sensors and satellite tracking and due also to covering less nautical
the rights of those working on ships Bulker IFO2 581,282
GHG B 104
data to optimize voyage duration, reducing mileage.
fuel consumption at sea, and we are Bulker MGO3 26,283
•• Peace, justice and strong institutions GHG C 138
also collaborating with the IMO’s Global Looking at the LDC fleet as a whole, Tanker IFO 57,915
– proactively contributing to the GHG D 365
Industry Alliance roundtable on just-in-time 62% of vessels used had an EVDI energy
responsible governance of our oceans Tanker MGO 1,144
operation of ships to help cut down fuel efficiency rating less than 5 grams of GHG E 140
consumption at port. CO2/ton-mile.8
GHG F 45
Calculated total CO2
2,078,6474
LDC can have the greatest impact on the In 2019, we will commence live monitoring emissions (tons of CO2) GHG G 2
vessels we operate under time charter, of our emissions rather than relying on
where we have more operational control. In Rightship’s EVDI projections for the fleet.
2018, we invested in SOx and NOx emission This more accurate data will enable us
+6m
reduction equipment on some of these to set ambitious reduction targets, with
ships that are currently under construction. confidence that we can be truly transparent
about our performance.
2 IFO is heavy fuel oil ISO 8217 grade RME, with a maximum of 3.5% sulfur content and 3.1144 tons of CO2 emitted
Importantly, our collaboration with per ton of fuel burned
nautical miles partners through the Sustainable Shipping 3 MGO is Marine Gasoil, with a maximum of 0.1% sulfur content and 3.2060 tons of CO2 emitted per ton of fuel
travelled Initiative (SSI) is ongoing, particularly on burned. MGO is used in Sulfur Emissions Control Areas (SECAs), which are geographical areas with stricter controls
1 Source: International Energy Agency, Commentary: on a range of airborne emissions.
International Maritime Organization agrees to first long- de-carbonization goals and the responsible 4 Figures for this graph relate only to time charter vessels, i.e. where LDC has greater operational control
term plan to curb emissions (April, 13th, 2018, https:// recycling of ships. 5 Source of ratings: Rightship rating of LDC chartered fleet
www.iea.org/newsroom/news/2018/april/commentary- 6 EVDI is Rightship’s proprietary rating measuring a ship’s CO2 emissions per ton nautical mile
imo-agrees-to-first-long-term-plan-to-curb-shipping- 7 Source: Clarksons, April 2019
emissions.html accessed April 2019) 8 See footnote 5 above

Freight continued
Studies toward more New Targets

sustainable shipping
Complete research on how
In 2018, we completed most of the work LDC can make an impact
on our study on chartering wind-propelled on human rights at sea
vessels. Although we are still validating
certain assumptions on saving sea days Target:
with external input we expect the study 2019
to be completed in 2019, and see an
opportunity to charter such vessels in the Reduce CO2 emissions
new fuel environment after 2020. from LDC’s fleet by 5% per
ton-mile (comparing 2019
Our study on chartering dual LNG/gasoil actual emissions to 2018
propelled vessels is also ongoing. Work notional data)
to date has given us greater confidence in
infrastructure developments for bunkering Target:
LNG and the design of new tanks on 2019
certain large ships. We will continue to
explore remaining issues and expect to Set target for LDC fleet
complete this study in 2019 as well. emissions reduction per
ton-mile for 2022
Alongside our own studies, we are
participating in the Sustainable Shipping Louis Dreyfus Company B.V. (the “company”) has made every effort to ensure accuracy of the information contained in
Target:
Initiative’s biofuel working group. With this this report. However, the company cannot guarantee the completeness and accuracy of all information contained herein.
2019
group’s study due to be published in 2019, The copyright to this report and its content are, except where otherwise indicated, held by the company. Unauthorized use,
we have amended our target accordingly. reproduction or conversion is strictly prohibited.
Complete study on
chartering wind propelled
2019 and beyond vessels
© Produced by Reluctantly Brave (London, UK)
As we start to monitor actual emissions © All photos Copyright Louis Dreyfus Company unless otherwise indicated. All rights reserved.
Target:
with granularity, we will compare our 2019 2019
data to EVDI-based notional efficiency data Credit for photography that illustrates this report:
from 2018, targeting a 5% reduction while Complete study on
recognizing that the comparison will be © Photographers: Raphael Olivier / Melina Gianelli / Rafael Tomazi / Foto Susi / The Edge / Inter Aide / PUR projet /
chartering dual LNG/gasoil Marcio Bruno / Marc-Olivier Giguière
imperfect. We will also set accurate and propelled vessels
ambitious reduction targets for 2022.
© Shutterstock: Feng Yu / Midiwaves / benjaminec / STILLFX / Enrico01 / igostevanovic / diogoppr / Dado Photos /
Acknowledging that this challenging work Target: happystock / KYtan / aaltair / Wong Hock weng / Tristan tan / sima / Fotokostic
on environmental goals should not detract 2019
from equally important concerns regarding @ iStockGetty: pushlama
human rights at sea, we shall complete Contribute to SSI study on
research on how LDC can make an impact ships of the future
in this area and report on our findings in Printed by a CarbonNeutral® print company in the UK on 100% recycled paper using its alcolfree® and pureprint® environmental
next year’s report. Target: printing technology and vegetable inks throughout. Both the manufacturing paper mill and the print company are registered to
2019 the Environmental Management System ISO 14001 and are Forest Stewardship Council® (FSC) chain-of-custody certified.
60 Louis Dreyfus Company

Louis Dreyfus Company B.V.
Westblaak 92
3012 KM Rotterdam
The Netherlands
www.ldc.com

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Moving

Sustainability Report 2018 1

2 Louis Dreyfus Company Sustainability Report 2018 3

Moving forward Our performance against targets in 2018

4 Louis Dreyfus Company Sustainability Report 2018 5

around the world – safely, Mombasa Jakarta

responsibly and reliably. India

Our vision Our mission Value Chain Segment Merchandizing Segment

To work toward a safe To use our know-how Grains Coffee

We are committed to supporting the communities

6 Louis Dreyfus Company Sustainability Report 2018 7

Last year’s report outlined the SDGs we can Platforms

SDG 17 Partnerships for the Goals

8 Louis Dreyfus Company Sustainability Report 2018 9

Deforestation, Climate Water Waste

10 Louis Dreyfus Company Sustainability Report 2018 11

Economic Safety Human Diversity Land Working in

Oversight Oversight Oversight Oversight Oversight Oversight

12 Louis Dreyfus Company Sustainability Report 2018 13

14 Louis Dreyfus Company Sustainability Report 2018 15

people Reduce lost time

Completion: Completion: Completion: Completion:

Progress: Progress: Progress: Progress:

+5.3% +10.5% -7.9%

2018 0.81 2018 0.34 2018 7.94

16 Louis Dreyfus Company Sustainability Report 2018 17

Zero Lost Time Injuries 2012 to 2018 Making SHE a priority

2018 82 2018 79 2018 76 2018 78

18 Louis Dreyfus Company Sustainability Report 2018 19

2017 86 14 2017 23 45 22 9 1 Target:

Refresh the LDC employee value

20 Louis Dreyfus Company Sustainability Report 2018 21

Completion: Completion: Completion: Completion: Completion: Completion: Completion: Completion:

Progress: Progress: Progress: Progress: Progress: Progress: Progress: Progress:

Feeding 9 billion people in

1 The World Bank, 2017 (https://blogs.worldbank.org/

22 Louis Dreyfus Company Sustainability Report 2018 23

GHG Emission Index Electrical Power Consumption Index

In Zhangjiagang, our teams designed a

24 Louis Dreyfus Company Sustainability Report 2018 25

Solid Water Water usage

The belt system is essential to move oranges

We no longer report on wastewater An extremely dry growing season

26 Louis Dreyfus Company Sustainability Report 2018 27

Environmental performance by Region

GHG Emission Index Electrical Power Consumption Index

2018 2.78 2018 17.25

2018 22.81 2018 12.00

North Asia North Asia

2018 111.18 2018 33.96

2018 48.06 2018 13.13

2018 79.84 2018 21.55

2018 16.78 2018 12.37

2018 39.57 2018 15.54

Water Consumption Index Waste Index

2018 0.145 2018 0.010

North Asia North Asia

2018 0.255 2018 0.0034

2018 0.222 2018 0.0031

1 The World Bank, 2017 (https://blogs.worldbank.org/