2020 Management Report

RTRS MANAGEMENT REPORT 2020 Round Table on Responsible Soy Association (RTRS)

2020 has been a challenging year for many of us. However, it brought progress, valuable results and new opportunities ahead to the Round Table on Responsible Soy Association (RTRS). This was our journey:

1 2 3 4 5

Global multistakeholder soy platform Certification: a solid and reliable tool Sustainable supply chains Innovation, transparency and credibility Global community

1

Global multistakeholder soy platform

1

Global multistakeholder soy platform

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

Engagement with the European Commission Acknowledging the global role played by the Association as a multistakeholder platform of the soy value chain, by mid-2020, RTRS has officially became a member of the new European Commission Platform for Multistakeholder dialogue on Deforestation and Forest Degradation.

The Platform was set up by the European Commission to provide a forum where stakeholders can exchange information and experiences, build alliances, push for and share commitments to significantly reduce deforestation. The main goal of the Platform is to advise the Commission on legislative proposals and policy initiatives aimed at protecting and restoring the forests. The European Commission takes responsibility for the fact that a significant percentage of the global deforestation is associated to European Union imports.

The goal is to have a legislative initiative bill by the second half of 2021.

RTRS participated in the first virtual meeting held in October and in several public consultations and working groups.

2020 MANAGEMENT REPORT - 04

1

Global multistakeholder soy platform

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

Due Diligence on endangered forest-risk commodities The Association participated in the Due Diligence in Latin America seminar and in the Due Diligence on Endangered Forest Commodities consultation process organized by the Department for Environmental Food & Rural Affairs (DEFRA) of the United Kingdom. Both initiatives are aimed at gathering information to define measures against global deforestation and promoting sustainable production of forest-risk commodities.

This proposal would help to take action against illegal deforestation.

2020 MANAGEMENT REPORT - 05

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Global multistakeholder soy platform

2

Certification: a solid and reliable tool

3

New meeting point 2020 RTRS Webinar Series This online initiative was thought as a dialogue forum with colleagues across the entire value chain for a collective reflection.

In the first meeting, participants analyzed how sustainable finances contribute to drive development and manage economic, social, and environmental impacts. Discussions also revolved around future challenges and opportunities for sustainable finances.

In the second webinar, RTRS had the opportunity to introduce its new Soy Conversion Factor System and Soy Footprint Calculator. Together with an expert panel, the Association presented the progress made by this technical research project and the Soy Footprint Calculator operation and functions.

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

2020 RTRS Webinar Series in numbers:

+20 94 Countries

Organizations

+500 15 Participants

Speakers

The organizations below participated as panelists:

The third meeting focused on the different success cases of RTRS sustainable supply chains and adopters, and on the impact of RTRS certification in the dynamic context where European regulations, market requirements and investors demands are being revisited.

2020 MANAGEMENT REPORT - 06

1

Global multistakeholder soy platform

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

Field Trip to Sorriso, Mato Grosso, Brazil In February, from the 9th to the 11th, RTRS made a Field Trip to Sorriso, Mato Grosso, Brazil with 30 representatives of soy related organizations from nine countries: Argentina, Germany, Belgium, France, Norway, The Netherlands, United Kingdom, and Switzerland, as well as from different regions in Brazil. The initiative intended to bring together different stakeholders, to network and create dialogue spaces.

Participants visited RTRS certified farms; they could witness soy harvest and corn planting in the largest grain producer state that holds two different biomasses: Cerrado and Amazonia. CAT Sorriso - Clube Amigos da Terra hosted the event.

Oradores

2020 MANAGEMENT REPORT - 07

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Global multistakeholder soy platform

2

Certification: a solid and reliable tool

3

Sustainable supply chains

“The Field Trip gave us an interesting vision of Brazilian agriculture. I was impressed by the innovation farmers can handle, the integrated farming systems that we saw and how producers use cattle as part of their field management practices. The responsibility and passion for agriculture seems to be part of the local culture and people, they are rooted in the soil and in the community.

Morrisons wanted to understand better the reality of the countries where soy supplied to the company is being produced. It was an excellent learning trip; it broadened my knowledge on RTRS.” Sophie Throup, Head of Agriculture, Fisheries and Sustainable Sourcing, Wm Morrison Supermarkets PLC, United Kingdom.

“It was interesting and inspiring to see producers and soy crops from up close, to talk about sustainability and see it really applied in the field.

However, the most surprising was the social impacts of certification, the social projects and the number of producers involved. Being certified is a way to be in line with our customers and the market. We support sustainable and responsible soy production.” Gesineke Borghuis, RSC Coordinator, Royal Agrifirm Group, The Netherlands.

4

Innovation, transparency and credibility

5

Global community

“We want representatives from foreign countries to see that it is us, the producers, who are taking care of the environment. Their concerns about unsustainable practices have dissipated because they’ve seen the situation as it really is.” Dudy Paiva, CAT Sorriso

President.

“All the certification work shows it is a structured production process. When we talk about product certification, we are talking about making the product origin visible to people. When we check the chains of the products we have, our concern is that transparency should be part of the history of the product we are offering our clients.

Our goal is to make information about food more accesible and more democratic, so that people can value and contribute to sustainable production.” Lucio Vicente, Corporate Affairs and Sustainability Director, Carrefour Brazil.

2020 MANAGEMENT REPORT - 08

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Global multistakeholder soy platform

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

Task Force Brazil The Task Force Brazil is a local multisectoral space intended to promote networking among the sector’s stakeholders, whether or not they are RTRS members, and to discuss topics and future actions to promote the growth of responsible soy production, trade and use in Brazil.

“The RTRS Task Force Brazil is an excellent platform to share perspectives and demands from the different stakeholders of the soy chain who are working for a more sustainable soy production in the country.”

Eric Geglio, Sustainability Specialist, Cargill South America.

In numbers:

2

Meetings

+100 Participants

+60

Organizations

“Being part of Task Force Brazil is a way of learning the best sustainability practices in the soy value chain and think how to move forward this agenda, both locally and globally. As a multidisciplinary group integrated by all stakeholders in the farming sector, it builds a considerable body of knowledge and expertise.”

Aline Camargo Aguiar, Sustainability Specialist, Rabobank Brazil.

5

Global community

“The Task Force is a space where we find knowledge and innovation with people who share our thinking about the common good. We can be in constant learning and embrace higher human values to share with our peers.” Gisela Introvini, FAPCEN Superintendent.

“Being part of RTRS Task Force Brazil is an opportunity to connect with the different links of the soy value chain that share the goal of forging and following a path to expand sustainable agriculture. Syngenta, RTRS and all the Task Force members are working towards the attainment of that goal.” Fernanda Saturni, Syngenta Sustainability Coordinator.

2020 MANAGEMENT REPORT - 09

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Global multistakeholder soy platform

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

Synergies with stakeholders • Early in 2020, the Global Alliance for Sustainable Supply Chain (ASSC) and RTRS held a face-to-face seminar in Tokyo, Japan, to introduce the Association and support the organizations carrying out an adequacy and compliance process to meet the requirements of the Tokyo 2020 Olympic and Paralympic Games Sustainable Sourcing Code —the Games have been postponed to 2021. RTRS certifications (Production and Chain of Custody) have been officially recognized for meeting the sustainability requirements of the Tokyo 2020 Sustainable Sourcing Code.

• In June, RTRS was a speaker in the “Corporate Actions for Zero Deforestation in Soy Production” webinar organized by CDP Worldwide.

The event wanted to share RTRS value and role as a soy multistakeholder platform and debate on how to uptake sustainable soy as well as the actions companies can implement to promote zero deforestation in soy production.

• In September, RTRS participated in a webinar together with over 50 collaborators of DuPont Nutrition & Biosciences* from around the globe interested in boosting RTRS certification added value. *Since February 2021, became part of the International Flavors & Fragrances Inc. (IFF).

• The Association presented an overview of its activities and performance to the Retail Soy Group (RSG) in November.

2020 MANAGEMENT REPORT - 10

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Global multistakeholder soy platform

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

The “Beyond 2020” RTRS Strategy Planned to be launched in 2021, the Association developed the “Beyond 2020” RTRS Strategy to identify the competitive advantages needed to achieve RTRS strategic goals over the 2021-2026 period.

Lead by the Association Executive Board and with the support of the Secretariat, the Malik Institute served as a facilitator of this co-creation process. Also, in this work early stages, Proforest contributed with valuable input on the global soybean scenario, thus providing the framework and content for RTRS challenging objective.

The “Beyond 2020” RTRS Strategy provides a roadmap for all activities that RTRS will undertake in the next six-year strategic period.

2020 MANAGEMENT REPORT - 11

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Global multistakeholder soy platform

2

Certification: a solid and reliable tool

New RTRS members

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

Participating Members: Industry, Trade & Finance

11

new organizations, committed to collaboratively work and foster sustainable supply chains, joined RTRS to take part in the global dialogue on soy economic, social and environmental impacts.

The organizations that joined RTRS see the Association as a transparent and reliable platform that enables them, thanks to synergies, to develop their strategies and attain their sustainability goals.

161

Observing Members

*

RTRS members in 2020 *Out of the total number of members as of December 31, 2020, two have their rights suspended.

2020 MANAGEMENT REPORT - 12

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Certification: a solid and reliable tool

1

2

Global multistakeholder soy platform

3

Certification: a solid and reliable tool

4

Sustainable supply chains

5

Innovation, transparency and credibility

Global community

Evolution of RTRS global certified production +16%

5.000.000 4.500.000

certified production vs. 2019

4.000.000 3.500.000 3.000.000 2.500.000

In 2020,

1,371,255 ha and 4,799,011 tons of soy were

2.000.000 1.500.000 1.000.000 500.000 -

Certified Soy

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

420.706

1.006.982

1.157.583

1.355.052

2.344.466

3.266.561

4.149.069

4.465.232

4.114.443

4.799.011

RTRS-certified worldwide.

2020 MANAGEMENT REPORT - 14

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Global multistakeholder soy platform

2

3

Certification: a solid and reliable tool

4

Sustainable supply chains

5

Innovation, transparency and credibility

Global community

RTRS global certified production TOTAL TONS

BY COUNTRY

In total,

49,936 producers

Brazil

3,677,721

Argentina 653,886

were RTRS certified in 2020,

CHINA

India

243,314

Paraguay 131,110

49,669 of them

from India.

PARAGUAY

BRAZIL

INDIA

China

66,467

Uruguay

26,513

URUGUAY ARGENTINA

2020 MANAGEMENT REPORT - 15

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Global multistakeholder soy platform

2

3

Certification: a solid and reliable tool

4

Sustainable supply chains

5

Innovation, transparency and credibility

Global community

Growth of the RTRS Chain of Custody certification THE NETHERLANDS Bunge Netherlands BV

The RTRS Chain of Custody system consolidated in 2020.

Cereal Docks SPA Cereal Docks Marghera SRL

against RTRS Chain of Custody Standard. This represented an increase of more than 121% compared to 2019.

By the end of 2020, there were 122 sites certified to receive, process and trade RTRS-certified physical soy.

This is a milestone in the supply of RTRS physical material (Mass Balance).

ADM Hamburg Aktiengesellschaft

ITALY

84 new sites in 10 different countries certified

68 Storage plants, 21 Processing facilities, 19 Ports, 1 Transshipment facility and 6 Trading offices.

GERMANY

TURKEY Sodrugestvo Turkey Tarim TAS. ITH. IHR. TIC. A.S

PARAGUAY

INDIA

COFCO International Paraguay S.A. LDC Paraguay S.A.

Kriti Nutrients Limited non-OGM

THAILAND

ARGENTINA

Thai Vegetable Oil Public Company Limited

Alimentos de Soja S.A non-GMO Aceitera Chabás SAIC Aceitera General Deheza SA Bullmark S.R.L. non-GMO COFCO International Argentina S.A. Kumagro S.A. LDC Argentina S.A. Molinos Agro S.A. Tecnocampo S.A. non-GMO T6 Industrial S.A.

BRAZIL

URUGUAY Mibamar S.A.

EU RED

Amaggi Exportação e Importação Bunge Alimentos S.A Cataratas do Iguaçu Produtos Orgânicos Ltda non-GMO Cargill Agricola S.A. General Mills Brasil Alimentos Ltda non-GMO Louis Dreyfus Company - Brasil SAAG - Sociedade de Armazenamiento e Agricultura Limitada non-GMO Unilever Brasil Industrial LTDA Vegetallis Indústria e Comércio

2020 MANAGEMENT REPORT - 16

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Global multistakeholder soy platform

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

RTRS-certified soy production continues to grow worldwide In 2020, despite the COVID-19 pandemic, with much effort, the world RTRS-certified production reached 4,799,011 tons, compared to the 4,114,443 of certified tons in 2019.

This almost 16% increase shows that sustainable agricultural practices have been gaining ground and relevance,

becoming a strategic pillar in the global grain scenario.

In 2020, Brazil ranked first among the largest RTRS certified soy producers, with approximately 970,873 hectares and 3,677,721 tons.

Argentina, Paraguay and Uruguay, in Latin America, also stand out: 254,606 hectares and 811,509 RTRS certified tons; China and India, in Asia, with 145,741 hectares and 309,781 tons. In Asia, the group certification that fosters sustainable production of small and mid-sized producers stands out. These producers own, on average, 2 to 3 ha in India and approximately 3,000 tons in China.

2020 MANAGEMENT REPORT - 17

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

Leading case

The experience of small RTRS-certified producers in Asia 49,669 soy producers in India certified 120,439 hectares and 243,314 tons of soy under the RTRS Standard for Responsible Soy Production. In China producers achieved RTRS certification of 66,467 tons of soy grown in 25,302 hectares.

In India, certified producers are represented by Arvind Limited, Haritprakash Biocare LLP and Mahaveer Udhyog; they are small holders farms of 2 to 3 ha on average. China certified producers, represented by Sinograin Northern Agriculture Development Company Ltd., owns a little over 3,000 certified ha each.[1] Soy producers in both countries gathered under a Group Certification and complied with the 106 mandatory certification indicators applicable worldwide in accordance with RTRS five principles: legal compliance and good business practices; responsible labor conditions; responsible community relations; environmental responsibility, and good agricultural practices.

“RTRS certification increases efficiency in agricultural management, which means soil protection and better water management. It also resulted in increased employee motivation and a closer relationship with neighbours and communities.” Gomtesh Doshi, Mahaveer Udhyog representative.

"Overall, production management improved with higher productivity and higher yields. It also had a positive impact on inputs with a 3% annual decrease in the use of chemical fertilizers and pesticides.” Han Zhan, spokesperson for Sinograin Northern Agriculture Development Company Ltd.

[1] Mahaveer Udhyog, Arvind Limited and Haritprakash Biocare LLP are Group Managers for each certification process. The Group Manager is responsible for applying for the certification and is the certificate holder on behalf of the group. He ensures producers’ compliance with the RTRS standards and requirements and handles the documentation.

“Thanks to the training received by our growers, there was a greater awareness of working conditions and a significant increase in the adoption of health and safety measures in the field.” Abhishek Bansal, Sustainability Manager, Arvind Limited.

2020 MANAGEMENT REPORT - 18

©Arvind Limited

1

Global multistakeholder soy platform

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

Leading case

21% increase in RTRS certified soy in Argentina Leaders of the Argentinian production and processing sector applied for the RTRS certification of their sustainable agricultural practices in 2020, increasing sustainable soy production in Argentina 21% compared to 2019.

By the end of 2020, eigth new Argentinian producers certified a total of 40,436 hectares and 141,276 tons of soy for the first time, in compliance with the RTRS Standard for Responsible Soy Production.

Despite the COVID-19 pandemic context, the increase in production showed that certification is also expanding in Argentina, as a solid and reliable tool to implement sustainable agricultural practices.

Salentein Argentina B.V., one of the newly RTRS certified producers, certified 8,214 tons of soy grown on 3,184 hectares over four different farms in the province of Entre Ríos.

"RTRS certification proved that it is possible to produce in a sustainable manner, which positions us positively to face the new challenges posed by the growing global demand”, adds Rubén Juan Zaragoza, Responsible for Sustainability at Salentein Argentina BV. Ledesma S.A.A.I., one of the top sugar companies in Argentina, certified 24,561 tons of soy grown on 6,805 hectares in the province of Buenos Aires.

As outlined by Ledesma S.A.A.I.’s sustainability policy, the main practices of the company’s are based on the efficient use of resources, with a minimized environmental impact. Jorge López Llovet, Operations Manager for the Southern Region, says: “in agricultural matters, RTRS certification definitely adds value to our soybean production and encourages us to continue improving”.

The other six new Argentinian certified producers in 2020 were: Cosufi S.A. in Córdoba, Agropecuaria Patagónica del Sur S.A., Hijas de Juan A Harriet S.A., SyD Lafuente S.A. in Buenos Aires; El Potrero de San Lorenzo S.A. in Entre Ríos and Tilo Pampa in Santa Fe. 2020 MANAGEMENT REPORT - 19

Estancia Caldenes – Cañada Seca – Bs As - Argentina

1

Global multistakeholder soy platform

1

Global multistakeholder soy platform

2

Certification: a solid and reliable tool

Leading case

3

Sustainable supply chains

4

5

Innovation, transparency and credibility

Global community

Brazil – MATOPI: Connection with the world

RTRS sustainable soy corridor in MATOPI PORT OF ITAQUI

In September 2020, one of Puerto Itaquí´s terminals, in the state of Maranhão, Brazil, obtained the RTRS Chain of Custody certification to meet the demand for RTRS certified soy. Puerto Itaquí connects the Brazilian grain market with the main international markets; it is considered the third largest port for soybean exports.

By certifying against RTRS Chain of Custody, the port terminal encourages truly sustainable food supply across the globe and contributes to strengthen and expand the volume of certified soy production in the region, guaranteeing food security.

PORT OF ITAQUI

REFERENCES 36 certified farms RTRS

Numbers 2019 Planted area: 277.107,42 hectares Total Production: 1.033.734,79 tons Conservation area: 184.130,06 hectares

Spots – Units certified RTRS Chain of Custody

In 2020, the MATOPI region (states of Maranhão, Tocantins and Piauí) had more than 270 thousand hectares and more than 1 million tons of RTRS certified soy; this represents about 36 RTRS certified producers.

2020 MANAGEMENT REPORT - 20

3

Sustainable supply chains

1

Global multistakeholder soy platform

2

3

Certification: a solid and reliable tool

4

Sustainable supply chains

5

Innovation, transparency and credibility

Evolution of RTRS certified material uptake In 2020, RTRS recorded a 20% increase in certified soy uptake compared to the previous year. Out of the total certified material adopted, the physical flow was 634 k tons, a 14% increase in the uptake of physical soy compared to 2019.

Global community

+20%

uptake increase vs. 2019

4.750.162

4.500.000

4.000.000

3.951.409

3.500.000

3.000.000

2.802.722 2.500.000

2.429.310

4,750,162 tons

2.000.000

1.500.000

of RTRS certified material uptake (Credits and Mass Balance)

2.040.721

2.194.179

1.335.712

1.000.000

774.597 500.000

Mass Balance Credits

484.133 174.119

2011

140.100 34.019

691.635 82.962

441.053 43.080 2012

2013

2014

1.297.712

2.118.085

1.944.949

2.110.426

2.485.980

3.395.847

4.115.403

56.000

241.225

95.772

83.753

316.742

555.562

634.759

2015

2016

2017

2018

2019

2020

2020 MANAGEMENT REPORT - 22

1

Global multistakeholder soy platform

2

3

Certification: a solid and reliable tool

4

Sustainable supply chains

Innovation, transparency and credibility

Countries that uptake RTRS soy BELGIUM

5,85%

HOLLAND

23,94%

CANADA

0,01%

In recent years, the demand for RTRS certified material has grown across different industries and countries. This is a result of the diversification of demand for biofuels and aquaculture, among others. The demand increase has been observed in Latin America as well as in Scandinavia (Denmark specifically) and the United Kingdom.

UNITED KINGDOM

11,07%

SCANDINAVIA

IRLAND

0,03%

FRANCE

HONDURAS 3,57% 0,36% NICARAGUA

0,11%

0,02%

ROMANIA

1,93%

CHINA

SPAIN

16%

PERU

0,00% 0,11%

GREECE

1,16%

INDIA

PARAGUAY

0,00%

0,29%

BRAZIL GERMANY

2,91%

7,96%

7,94% ITALY SOUTH AFRICA

0,73% 0,22% ARGENTINA

0,00%

THAILAND

0,42%

CHILE

JAPAN

0,01%

COSTA RICA 1,70% 0,01% SWITZERLAND

ECUADOR

0,00% POLAND

0,52%

UNITED STATES

RUSSIA

13,04%

VIETNAM

0,00%

5

Global community

Holland Switzerland Scandinavia UK Brazil Germany Belgium France Chile Ecuador Spain Greece Italy Irland Peru Honduras Paraguay South Africa United States Thailand Argentina Poland Nicaragua Canada Costa Rica Romania China India Japan Vietnam Russia Total

23,94% 16% 13,04% 11,07% 7,96% 7,94% 5,85% 3,57% 2,91% 1,93% 1,70% 1,16% 0,73% 0,52% 0,42% 0,36% 0,29% 0,22% 0,11% 0,11% 0,09% 0,03% 0,02% 0,01% 0,01% 0,01% 0,00% 0,00% 0,00% 0,00% 0,00% 100%

0,09%

2020 MANAGEMENT REPORT - 23

1

2

Global multistakeholder soy platform

Certification: a solid and reliable tool

Top 20 organizations that uptake RTRS material in the world

3

4

Sustainable supply chains

450k

(Mass Balance) SWITZERLAND

330k

(Credits) DENMARK

5

Innovation, transparency and credibility

294k

(Credits) THE NETHERLANDS

240k

Global community

212k

(Credits) GERMANY

(209k Credits + 3k Mass Balance) BRAZIL

(Credits) SWITZERLAND

130k

(Credits) UNITED KINGDOM

124k

87k

83k

80k

Nestle

185k

180k

115k

101k

(Credits) (Credits) THE NETHERLANDS THE NETHERLANDS

162k

(Credits) BELGIUM

Leading resellers that adopted RTRS material

2.4M

(Credits) THE NETHERLANDS

300k

(Credits) THE NETHERLANDS

299k

(Credits) THE NETHERLANDS

(Credits) DENMARK

(Credits) BELGIUM

(Credits) THE NETHERLANDS

(Credits) UNITED KINGDOM

(Credits) BRAZIL

76k

67k

66k

65k

53k

(Credits) FRANCE

(Credits) UNITED KINGDOM

(Credits) ECUADOR

(Credits) THE NETHERLANDS

(Mass Balance) Brazil

2020 MANAGEMENT REPORT - 24

1

Global multistakeholder soy platform

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

39 new organizations uptake RTRS certified material The consolidated increase in RTRS certified material demand shows that organizations in the soy value chain are more engaged in promoting the production, processing, and trade of sustainable soy. At the same time, it recognizes the value of RTRS certification as a tool that helps the soy supply chain comply with its sustainability goals and policies. More and more organizations choose RTRS certified material, either RTRS Credits Supporting Responsible Soy or physical soy (Mass Balance).

The registration of 39 new buyers in 2020, both members and non-members, represented 500,000 tons of RTRS certified material.

2020 MANAGEMENT REPORT - 25

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

©ASC

1

Global multistakeholder soy platform

Leading case

The aquaculture sector manages its impact with RTRS Credits Soy is a basic feed ingredient for farmed fish; by-products such as lecithin, meals and concentrated soy protein are used in fish feeds. Therefore, the aquaculture supply chain is increasingly trying to find sustainable sources.

This trend is clearly seen in the larger number of adopters of RTRS certified material coming mainly from Central America.

In 2020, 225,000 RTRS Credits Supporting Responsible Soy went to aquaculture, a 339% increase compared to the previous year. This considerable number of adopters partly results from the momentum gained by best practices in the management of social and environmental impacts fostered by the Aquaculture Stewardship Council (ASC). The ASC certification scheme requires fish farms to source from suppliers that guarantee a sustainable supply policy in food production, and since 2017 it includes the requirement to use certified soy (soy by-products or its equivalent in RTRS Credits) under the RTRS Standard for Responsible Soy Production, which ASC considers the most robust for environmental protection purposes.

RTRS celebrates the increasingly active participation of the aquaculture sector and the work done by organizations such as ASC in the promotion of collaborative synergies aimed at sustainable production and trade practices.

2020 MANAGEMENT REPORT - 26

1

Global multistakeholder soy platform

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

Leading case

DuPont Nutrition & Biosciences supported responsible soy through the purchase of RTRS Credits Legacy DuPont Nutrition & Biosciences (N&B) became part of the IFF family in February 2021 and is an industry leader in the plant-protein ingredients space. Legacy N&B has been a member of RTRS since 2010 and supports the responsible production of soy through the purchase of RTRS Credits.

“Most of Legacy N&B’s soy protein products are produced with soybeans from the United States and we source some volume in Brazil to serve the local plant there. Incentivizing the production of responsible soy in Brazil is a key lever we are deploying in the region to support deforestation-free soy supply chains. We are pleased to be part of RTRS and to contribute towards addressing social and environmental challenges in the soy industry in a multistakeholder faceted manner”, said Mikkel Thrane, Global Sustainability, Green Growth Leader, IFF.

2020 MANAGEMENT REPORT - 27

1

Global multistakeholder soy platform

2

3

Certification: a solid and reliable tool

4

Sustainable supply chains

Innovation, transparency and credibility

5

Global community

Leading case

RTRS certified soy for biofuels: adoption record In 2020, 506,000 tons went to the biofuels market, more than 20% increase in RTRS-certified physical soy compared to 2019.

The European Commission Renewable Energy Directive (EU RED) establishes rules for the import of raw materials (such as soy) in the European Union to produce biofuels.

RTRS renewed EU RED recognition in 2017, meaning that all certified organizations under the RTRS EU RED Compliance Requirements for the soy supply chain may export soy as raw material for biofuels to any European Union member country.

Some of the EU RED factors that allow defining whether the imported raw materials are sustainable are: land use, GHG emissions criteria, and traceability, among others.

600,000

506,000

500,000

423,000

400,000 300,000 200,000

165,000

100,000 -

2018

2019

2020

Biofuels(k) 2020 MANAGEMENT REPORT - 28

2

Certification: a solid and reliable tool

3

Sustainable supply chains

4

Innovation, transparency and credibility

5

Global community

Leading case

ADM certifies Chain of Custody in Germany and uptakes certified physical soybeans for biofuels Archer Daniels Midland (ADM) adopted approximately 450,000 tons of RTRS certified material as raw material for biofuels.

Furthermore, ADM certified the Chain of Custody in four sites (ADM Hamburg AG, ADM Mainz GmbH, ADM Europoort BV, and ADM International SARL) plus a commercial office in Rolle, Switzerland and three facilities that include storage, processing and terminals in Hamburg and Mainz, Germany, and in Rotterdam, The Netherlands.

“Basically, we see a more substantial company engagement in adopting an increased volume of sustainable physical soy. We see that clients expect to have certified products and that RTRS certification is widely accepted by the different stakeholders.

Therefore, we aim to meet that demand by certifying our facilities.”, stated Ana Yalluf, ADM Sustainability Manager EMEAI.

“We are proud of being part of RTRS since 2007. Certification is in line with our commitment to ethical supply; today, we are the largest buyer of RTRS certified sustainable soy, which allows us to support our clients who are looking for sustainability verification systems that may ensure transparency, reliability and quality along the entire soy supply chain. This certification also ensures versatility since buying RTRS soy means having access to a large range of sustainable products, such as soy meal and oil, and to biofuels”, said Joy Turney, ADM European Soybean Crush General Director.

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©ASC

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Global multistakeholder soy platform

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Innovation, transparency and credibility

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Global multistakeholder soy platform

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Certification: a solid and reliable tool

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RTRS is an ISEAL Community Member By the end of 2020, RTRS became the first soy certification system that complies with ISEAL’s eligibility criteria and became Community Member.

As such, RTRS commits to the continuous improvement of its certification system, participating in the learning, collaboration and innovation activities facilitated and proposed by ISEAL.

Being an ISEAL Community Member has a significant impact on the RTRS scheme because the Association had to develop new procedures to comply with ISEAL´s requirements, including the RTRS Theory of Change, the Monitor & Evaluation (M&E) System, among other new developments.

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Global multistakeholder soy platform

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Certification: a solid and reliable tool

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Soy Footprint Calculator In October 2020, RTRS introduced the new Soy Footprint Calculator that enables players in the soybean sector, organizations, and consumers in general, to calculate how much soy is embedded in soy* products, certain animal feed or food products.

To estimate the footprint, RTRS developed the Soy Conversion Factors System and the Soy Footprint Calculator, a new tool that enables users to calculate, in a practical and credible way, how much soy is used as an input in the production of certain soy products (including, meal, lecithin, etc.), animal feed and food products (for instance beef, poultry, milk or eggs).

*Soy first and second processing products and byproducts.

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Soy Footprint Calculator The RTRS Soy Conversion Factors System is a conversion method based on a rigorous technical work and detailed research that included understanding and analyzing each soy processing stage and its results. The research provided the accurate information needed for a transparent calculation of the soy utilized and contained in the products under analysis in this stage of the development of the RTRS Soy Footprint Calculator**.

The Agribusiness and Food Center (Centro de Agronegocios y Alimentos, CEAg) from Austral University (Argentina) and 3Keel (United Kingdom) guided the development of the RTRS Conversion Factor System and the Soy Footprint Calculator. Both institutions worked as expert advisers at different stages of the process. The project was carried out by these entities together with referents, specialists, processing companies, traders and intermediate institutions that provided the technical and theoretical framework required to develop a rigurous and representative soy footprint calculating system.

Partners

Start your experience; find out your soy footprint.

** The first step of the RTRS Conversion Factor System and Soy Footprint Calculator defines and analyses the hundreds of products that include soy as an ingredient.

The plan is to update the System and the Calculator periodically and continue defining and analyzing new products every year.

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Certification: a solid and reliable tool

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Review of the RTRS Standard for Responsible Soy Production By mid-2020, the Association started reviewing the RTRS Standard for Responsible Soy Production as part of its commitment to continuous improvement and compliance with ISEAL Good Practices Code that fosters the development of efficient, transparent and multistakeholder standards. In June 2020, RTRS opened a public consultation on the RTRS Standard for Responsible Soy Production for 60 days. During that period, the Association received comments and remarks that were evaluated by the working group created for that purpose.

In line with the multistakeholders approach of the Association, the working group included the participation of representatives from the three RTRS constituencies: producers, industry, trade and finance, and civil society organizations. Experts and certification bodies could take part as observers to ensure that the sector was properly represented.

The working group had six virtual meetings where they analyzed the comments received, from September to December 2020.

Finally, RTRS drafted the RTRS Standard for Responsible Soy Production V4.0, which includes the conclusions, adjustments and recommendations for the production of soy discussed by the working group. In 2021, the draft will be shared in a new public consultation process.

Furthermore, since 2020, the Accountability Framework initiative (AFi) together with RTRS has been reviewing the RTRS Standard for Responsible Soy Production. The revision started with a comprehensive benchmarking of the Framework against the RTRS Standard for Responsible Soy Production and recommendations to align the identified issues. As a result, the revised version 4 of the Standard will include key Framework expectations and definitions, which implies aligning the RTRS Standard for Responsible Soy Production reviewed version with the main components of the Framework.

It is important to note that the RTRS Standard for the Production Responsible Soy reviewed version shall be approved by RTRS members in 2021.

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Global multistakeholder soy platform

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Global community

RTRS is involved in gender perspective initiatives in the development of the certification standards RTRS acknowledges the significant and determinant role that certification standards play in society. Therefore, RTRS commits to improve the approaches and develop new gender standards that may contribute to a sustainable and inclusive growth, in order to reduce inequalities.

In 2020, the Association subscribed to the United Nations Declaration on the Integration of Gender Perspective in Technical Norms and Standards, which recognizes Goal 5 of the Sustainable Development Goals set in the UN 2030 Agenda: achieve gender equality and empower all women and girls.

As signatory of such an important Declaration, RTRS is part of the UNECE (United Nations Economic Commission for Europe) Working Party on Regulatory Cooperation and Standardization Policies. Within the framework of this endeavor, the Association participated in the Working Group on Knowledge Sharing & Training aimed at supporting the development of gender integration capacities in certification standards.

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Global multistakeholder soy platform

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Certification: a solid and reliable tool

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Sustainable supply chains

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Global community

New RTRS website: a space thought to facilitate multistakeholder dialogue By mid-2020, RTRS launched a new website, totally renewed and designed for a better navigation and user experience. It is an informative tool developed to boost the implementation of a sustainable agriculture agenda.

Its objectives include facilitating access to information on how organizations can become members of RTRS, learning about RTRS certified producers and global production volumes, have access to public audit reports and relevant data to participate in public consultation processes or working groups.

Anyone can access the new website from any mobile device and find RTRS market information in real time for strategic decision making. The website offers an efficient navigation experience; users can access RTRS tools and certification standards and quickly identify each player in the soy multi stakeholder platform.

Take part in this new meeting point, visit responsiblesoy.org

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RTRS Members

Madhya Bharat Consortium of Farmers Producer Company Limited (MBCFPCL) - Supercargo, Superintendência e Comercio Alimentar, Lda.

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RTRS Executive Committee Industry, Trade & Finance Jochem Bouwmeester Rabobank The Netherlands Lieven Callewaert (Vice President) Alliance4Soy Belgium Judith Kontny Lidl Stiftung & Co. KG Germany Stefan Heinke Bayer AG Germany Jorn Jasper Schouten ACT Commodities The Netherlands

Producers Marina Born (President) Caldenes Agropecuaria S.A. Argentina Juliana de Lavor Lopes (Vice President) Amaggi Brazil Luiz Carlos Iaquinta Filho Bartira Agropecuária S.A Brazil Gisela Regina Introvini FAPCEN Brazil Regina da Graça Paiva Associação Amigos da Terra de Sorriso – Cat Sorriso Brazil

Civil Society Organizations Ulises Javier Martinez Ortiz (Vice President) Fundación Vida Silvestre Argentina Argentina Hernan Zunino The Nature Conservancy Argentina Morgan Gillespy CDP Worldwide United Kingdom

Switzerland Secretariat Evert Raymakers Europe Outreach & Engagement Manager Ingrid Korn Administration Officer Argentina Secretariat Marcelo Visconti Executive Director Laura Villegas Communications Officer Daniel Kazimierski Technical Unit Officer Ana Laura Andreani Technical Unit Analyst External Consultants Cid Sanches RTRS External Consultant, Brazil

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ROUND TABLE ON RESPONSIBLE SOY ASSOCIATION UTOQUAI 29/31 | 8008 Zurich, Switzerland www.responsiblesoy.org

@responsiblesoy

RTRS