How to ensure sustainable value chain for Brazilian soy production?

Jan, 2020

THE BRAZIL SCENARIO

Source:http://gtps.org.br/wp-content/uploads/2018/10/Brazil-Agro-environmental-Potency-1.pdf

http://gtps.org.br/wp-content/uploads/2018/10/Brazil-Agro-environmental-Potency-1.pdf

In 2019, the Cerrado Biome deforestation was the lowest since its measurement began in 2000, thus representing a reduction of 2.26% when compared to 2018.

These numbers were provided by the INPE (National Institute for Space Research) PRODES Cerrado.

The Amazon Biome deforestation raised 85.3% in 2019 when compared to 2018. This rate is the worst since 2015.

These are preliminary numbers provided by the INPE, based on the DETER system that uses real time deforestation detection alerts identified by satellite.

2019: Amazon2019: Cerrado

Is the Amazon deforestation linked to soy production?

1st: What is the use of deforested / burned areas?

According to MapBiomas researchers, in the Amazon biome, areas deforested since 1988 were used as follows:• 63% of everything that has been deforested in Amazon has become low-productivity pasture with degrading soils;• 23% have become abandoned areas, which is regenerating;• 13% is for agriculture and urban use.

2nd: What is the current area occupied by soy in the Amazon biome?Soy occupies 4.8 million ha of the total 420 million ha of Amazon Biome – it represents 1.14% of deforestation since the firsthectare of soybeans planted in the 1980s.

3rd: Soy Moratorium: zero deforestation commitment, AMAGGI and other big soybean traders are signatories

Industries and exporters affiliated to the Brazilian Association of Vegetable Oil Industries (Abiove) and the National Associationof Cereals Exporters (Anec) have made a commitment not to market soybeans from areas in the Amazon biome deforestedafter 2008.

Annually, AMAGGI and other signatories receive an external audit to certify compliance with the Soy Moratorium.

2019 was a year of Strengthening Forest Commitments by:

LEGAL RESEVE (RL)area of a rural property that must

remain, or be restored with, native vegetation

80%

35%

20%

AMAZON BIOME

CERRADO AND LEGAL AMAZON

OTHER BIOMES

The Brazilian Forestry Code holds a high environmental protection rate:

State Government

Associations

Companies

Mato Grosso´s new tool enables immediate detection of illegal deforestation

• The Environmental Agency launched in Aug 2019 the MonitoringPlatform using Planet Satellite images, a high-resolution real-timedeforestation detection system that will enable preventiveenvironmental monitoring.

• The service was acquired through the REM Program and will act inreal time to control and combat illegal deforestation throughout thestate of Mato Grosso. With this tool, land owners will be heldresponsible and the area embargoed immediately.

During a visit in February, the

Norwegianambassador highlighted

Mato Grosso asan example in

environmentalpreservation and

reiterated the interestin allocating resources

to contribute tosustainable

development.

http://www.mt.gov.br/rss/-/asset_publisher/Hf4xlehM0Iwr/content/id/12410644http://www.mt.gov.br/-/11298664-embaixador-da-noruega-diz-que-mt-e-exemplo-de-preservacao-ambiental

State Government

Source:

Soybean industry keeps commitment to sustainability, says Abiove

In a statement, the entity said that it carefully monitors discussions on the Amazon and reinforces its participation

in good production programs.

Aprosoja Brazil condemns burnings and says they also threaten producer

Soybean organization defends compliance with the Forest Code and that the environmental debate must take into

account what is legal and illegal

Agricultural sector associations position Associations

AMAGGI SUSTAINABILITY

VISIONBe a company that is reference in

sustainable development.

MISSIONContribute to the development of

agribusiness, adding values, respecting the environment and

improving the life of communities.

https://www.amaggi.com.br/en/sustainability/

Sustainability video

Available at

https://www.amaggi.com.br/en/sustainability/

MAIN SUSTAINABILITY COMMITMENTS SOY MORATORIUM

No soybeans purchase from deforested areas in the Amazon Biome after 2008

CHILDHOOD BRAZILBusiness Pact Against the Sexual Exploitation of Children on Brazilian Highways

UN GLOBAL COMPACT andSUSTAINABLEDEVELOPMENT GOALS

EMPRESA LIMPA

Business Pact for Integrity Against Corruption

INPACTONational Pact for the

Eradication of Slave Labor

ProtocoloVerdedos Grãos

State of Pará GREEN GRAIN PROTOCOL

o Soybean Working Group (GTS)

o Cerrado Working Group (GTC)

o Brazil Climate, Forests and Agriculture Alliance

o MATOPIBA Alliance

o InPacto - National Pact for the Eradication of Slave Labor

o Brazilian Association of Vegetable Oil Industries (Abiove)

o Earth Innovation Institute and Balikpapan Challenge

o MT Strategy: Produce, Preserve and Include (PCI)

o Amazon Environmental Research Institute (IPAM)

o Round Table on Responsible Soy (RTRS)

o ProTerra

o The Nature Conservancy (TNC)

o Sustainable Trade Initiative (IDH)

o Global Canopy

o Agroicone + ISA + P4F (Seed Paths)

o Tropical Forest Champions

Multi-stakeholder

initiatives to tackle

deforestation and

strengthen sustainability

improvements

AMAGGI MULTI-STAKEHOLDERINITIATIVES

GLOBAL SUSTAINABILITY POSITIONING

2025 PLAN

2025Plan

GUIDE the company in its entirety and its value chain, until 2025, to the sustainable development – according to the AMAGGI strategy

Melhorandoa governança

e gestão

CONTINOUSLY IMPROVE

GOVERNANCE AND MANAGEMENT

Promovendo uma cadeia de valor

sustentávelPROMOTE A

SUSTAINABLE VALUE CHAIN

Debatendo opresente e

o futuro

INNOVATE IN SUSTAINABLE

PRODUCTS AND SOLUTIONS

Crescendocom o localDEVELOP WITH COMMUNITIES

NEW POSITIONING

Towards a Grain Chain Free from Deforestation and Conversion

• New version 2019 (launched in June 2019)

• 2018 Progress Report (launched in June 2019)

The CommitmentOur commitment to deforestation and conversion includes our agricultural production activities and our grain origination from rural producers.

It applies to all locations where we operate, in and outside Brazil, including the Cerrado and Amazon biomes.

We will work together with suppliers, customers, civil society and governments to achieve this result within the shortest time possible.

In search of a deforestation free chain, AMAGGI has five main fronts of action

ORIGINAR PLATFORM

Producers and companies on the List of Slave Labor 6

Areas embargoed by IBAMA1

Indigenous Lands and Conservation Units 5

Areas embargoed by SEMA/MT2

Areas that break the Pará Green Grain Protocol

4Soy Moratorium

(Amazon conversion after 2008)

3

Geospatial tools that ensure AMAGGI´s products traceability

ORIGINAR makes possible to cross producers' data and their properties with our criteria

SOCIO-ENVIRONMENTAL CRITERIA FOR GRAIN PURCHASE

NEW DEVELOPMENTSORIGINAR 2.0Under development and tests

Deforestation Alert System

Social and Environmental Risk Assessment

o Ranking of Certified Producers

o Definition of high risk areas

o Expansion opportunities over degraded and open areas

Dashboards

Market intelligence linked to socioenvironmental analyzes

o Registration of the inputs used by the farmer (e.g. which insecticides)

o Amaggi Market Share

SOCIO ENVIRONMENTAL CERTIFICATIONS

GRAINS CERTIFICATIONS

• Zero deforestation• Uses Mass Balance or Book and Claim trading modalities• Meets FEFAC Soy Sourcing Guidelines• EU RED modality - European Renewable Energy Directive

• Zero deforestation• Non-GMO product guaranteed by strip test and PCR

analysis • Possibility to calculate carbon footprint: the ProTerra new

standard has a requirement (not mandatory) related to the GHG emissions management

• Trading via Mass Balance (physical material)• Meets FEFAC Soy Sourcing Guidelines• Standard developed by AMAGGI and verified by a third party

AMAGGI has the

largest amount of

soy certified as

RTRS,

RTRS EU RED and

ProTerra

in the world.

AMAGGI AGRO

AMAGGI AGRO

All farms are located in the state of Mato Grosso (MT):• Água Quente e Tucunaré - Sapezal• Itamarati - Campo Novo do Parecis • Vale do Araguaia - São Félix do Araguaia • Tanguro - Querência• SM 01 - Itiquira

6 farms

Total environmental conservation area:

141 thousand hectaresArea equivalent to 13 Paris (Paris city area = 105.4 km² or 10,540 ha)

All own farms:

• Free of deforestation and conversion since 2008

• Opened over 20 years ago• Expansion only over degraded or already

opened areas

Energy:100% of AMAGGI farms are supplied with renewable electricity

Water conservation:All of AMAGGI´s farms do not use irrigation. The crops only get rainwater.

AMAGGI AGROTELEMECLIMAPrecis ionAgricu lture

RESEARCH AND DEVELOPMENT

GOOD AGRICULTURAL

PRACTICES

RADARClim ate / Weather

m onitoring in rea l tim e INNOVATION

Start-upsAgro-com puting

INVESTMENTSFlee t: Modern iza tion

And Efficiency

Agriculture highlights

RESEARCH AND DEVELOPMENT

CULTIVAR TESTING

o Non-GMO Testo High productivity materials,

resistant to pestso High protein content

(38% to 42% vs the usual 36%)

BIOLOGICAL CONTROLo Innovative line of researcho Expressive results for pest and disease controlo Currently expanding

• One of the experiments went from 200 hectares to a 50 thousand hectares potential

RESULTS:

o Reduction of chemical pesticides consumptiono Increase value-added productso Cost reduction and greater pest controlo Environmental impact reduction

Bio-factoryTo be installed at the Tucunaré farmWill use bacteria and fungiWill support all Amaggi farms

Images of experiments performed at the Tucunaré and Itamarati Farms

o Cultivar testing

o Biological control

RADAR

Soybean plantation

Woman operating a planter at the Itamarati farm (Sapezal/MT)

Soybean harvesting

Amaggi´s forest conservation area at the Água Quente farm (Sapezal/MT)

Amaggi´s forest conservation area at the Água Quente farm (Sapezal/MT)

Amaggi´s forest conservation area at the Água Quente farm (Sapezal/MT)

Biodiversity at Sapezal/MT – Tucunaré and Água Quente farms

Amaggi´s Tanguro farm (Querência/MT)

Sloth at the Tanguro farm (Querência/MT)

Juliana de Lavor Lopes

Sustainability, Communications and Compliance Director

juliana.lopes@amaggi.com.br

Thanks!

mailto:juliana.lopes@amaggi.com.br

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