9%of the world’s

cocoa farmers are now

�UTZ�certified

MAKING SUSTAINABLE FARMING THE NORMSince its launch in 2002, the UTZ program has had a massive impact. More than a million farmers and workers are part of the program, and the UTZ label is a familiar site on coffee, cocoa and tea packaging all over the world.�The�UTZ�certification�program�is�stronger�than�ever,�and we are now applying our expertise to new products.

Our goal is to make sustainable farming the norm, so we are�building�on�the�strong�foundations�of�certification�with�a�new�program�to�influence�the�sector�agenda�towards sustainability.

COFFEE, COCOA, TEA AND BEYOND: NEW PRODUCTSCERTIFICATION AND BEYOND: THE SECTOR PARTNERSHIP PROGRAM

Page 10

10% of global

coffee productionis now

UTZ�certified

596 new supply chain actors registered

with UTZ

SUSTAINABLE FARMING IN PRACTICEIt all starts with better farming. Farmers apply the UTZ standard,�which�brings�real�benefits.�Productivity�goes�up,�farmers and workers have better opportunities, and the environment is protected. Being part of the UTZ program also means access to training, and better market connections.

When�farmers�are�awarded�the�UTZ�certificate�this�provides evidence of the farm’s sustainability credentials, showing buyers that they can trust the origins of their products.

COLLABORATION AND PARTNERSHIPSWHAT’S THE IMPACT?

Page 4

A STRONG MARKET FOR SUSTAINABILITYThe market for sustainability is stronger than ever. Companies consider UTZ their mark of integrity: it shows consumers that their favorite brand is taking responsibility.

More and more companies are choosing to put sustainability at the heart of their business strategies – and they are working with UTZ to make it happen. Consumers are looking for brands that deserve their loyalty and trust, so we work with companies�to�find�engaging�ways�to�tell�their�sustainability�stories.

COMPANIES TELL THEIR SUSTAINABILITY STORIESA PROGRAM FOR THE FUTURE

Page 9

In 2015 our members sourced enough coffee, cocoa and tea to make more than:

28.6 billion cups of coffee14.4 billion bars of milk chocolate of 100g

2.9 billion cups of tea

The UTZ name appeared on more

than 13,500 products in 136 countries

PARTNERSHIPS ARE THE KEY TO CHANGE2015�was�a�year�of�reflection�on�where�we�have�been,�and�where�we�are�going next.

For several years we have focused on growing and strengthening our certification�program.�In�2015�for�the�first�time�there�are�more�than�a�million�farmers�and�workers�in�the�UTZ�program.�In�the�last�five�years�sales�of�UTZ�certified�

coffee and tea have grown by more than 90%; for cocoa, it’s more than 1,200%. I’m�very�happy�to�say�that�our�certification�program�is�stronger�than�ever,�and�

ready for the coming years.

Yet this has also been a period of change. Companies and governments are increasingly active in the sustainability agenda, with growth in company programs, sector platforms and national standards.�Companies�are�finding�new�ways�to�make�their�contribution�to�sustainability,�and�they�are�looking for trustworthy organizations to work with.

What�is�clear�now�is�that�certification�alone�is�not�enough.�When�it�comes�to�issues�like�climate�change, child labor or gender inequality, we need to see a broad coalition of actors getting involved. Now more than ever, partnership is the key to real change.

With this in mind we have developed a strategy for 2016-2019 that focuses on innovative partnerships with companies, farmers, NGOs, governments and others. In line with this approach, we are proud to�have�formed�a�strategic�partnership�with�the�Dutch�Ministry�of�Foreign�Affairs.�Funding�over�five�years will enable us to tackle issues that require a sector wide approach, with a focus on building the capacity of civil society.

Our mission remains the same as ever: we want to create a world where sustainability is the norm. Our new strategy is a clear roadmap, and I hope you will join us on the next stage of the journey.

Han de Groot, Executive Director

UTZ STRATEGIC GOALS 2016-20191. Deliver impact on farm level

Continue to create and demonstrate greater impact for farmers, their families and the environment, through training, tools & services, and monitoring & evaluation.

2. Maintain & create demand for sustainable products Support markets to build their sustainable sourcing a¬nd increase the demand for UTZ�certified�products.

3. Create supply of UTZ certified products Work to ensure the production and supply of�UTZ�certified�raw�materials�in�line�with�market demand by enabling farmers to adapt to external factors such as climate change.

4. Innovate key ingredients of the UTZ program Create innovative approaches to provide greater insights, information,

and assurance to farmers and supply chain actors*, such as through improved IT systems at farm group level, innovative training concepts and�improving�quality�and�efficiency�in�assurance mechanisms.

5. Deliver customized programs to market leaders Strategic partnerships with market leaders to conceptualize and implement programs for better farming. Over time, these may inform the further�innovation�of�certification�as�well�as�lead�to new sector-level services.

6. Influence sectors towards sustainability Work with civil society, governments and business to tackle issues that require a sector wide approach to create lasting change. Use UTZ’s position as thought leader to advocate continuous improvements in sustainability.

* A Supply Chain Actor is a member that operates within the UTZ supply chain and is not a producer/producer group. For example: processors, traders, or roasters.

SUSTAINABLE FARMING IN PRACTICECOLLABORATION AND PARTNERSHIPSIt all starts with better farming. A lot of our work is focused on expanding our reach and enabling more farmers to access the benefits�of�certification,�and�to�make�that�happen�it�is�vital�that�we collaborate with others.

COMBINED AUDITS: BRINGING DOWN THE COST OF CERTIFICATIONIn 2015 we made important agreements with RA-Cert and FLOCERT (the Rainforest�Alliance�and�Fairtrade�certification�bodies),�which�will�make�it possible for farmers to have combined audits in some countries. Being checked against two sustainability standards at the same time really brings the�costs�down�for�farmers.�It�also�makes�it�easier�for�them�to�be�certified�under more than one label, which gives them more options for where to sell their products.

SPOTLIGHT ON CÔTE D’IVOIRE: Collaboration with the International Cocoa Initiative The cocoa sector is a vital part of the economy of Côte D’Ivoire, which produces more than a third of the world’s supply of the crop, and we already work with more than 170,000 cocoa farmers in the country. Yet child labor continues to be a problem.

Since 2013 we have been working with the International Cocoa Initiative (ICI)�to�build�knowledge�and�skills�to�tackle�child�labor�at�the�community�level.�UTZ�certified�farmer�groups�are�required�to�proactively�identify�and�address child labor on their farms and in their households. UTZ, with the advice of ICI, has developed a guidance document for farmer groups to set up such systems effectively and will provide further guidance through training.

SPOTLIGHT ON NICARAGUA: Training and technical assistanceMore�than�3,000�coffee�and�cocoa�farmers�in�Nicaragua�have�benefited�from extra training and technical assistance in areas such as good agricultural practices, business management, technological innovation, finance�and�accessing�markets�thanks�to�the�PROMESSA�CAFCA�project.�This included developing a demonstration coffee plot that complies with the UTZ code, to be used for training and exchanging experiences. This model will be replicated in 2016 with coffee and cocoa farmers in different locations across the country.

The project was funded by the Dutch Ministry of Foreign Affairs and carried out by UTZ in partnership with the Foundation for Technological Development�of�Agriculture�and�Forestry�of�Nicaragua�(FUNICA),�Zamorano�University, international development organization SNV, and the private coffee exporter EXPASA.

SPOTLIGHT ON VIETNAM: Adapting to climate changeCoffee producers in Vietnam are already experiencing severe effects of climate change.

“The weather used to be foreseeable, but it is not anymore.” Says Pham Van Hoan. “For example, in the rainy season, there used to be sun in the morning and it rained in the afternoon. Now it is not so regular. This is a big problem for the growth of coffee plants and a big problem for coffee production in the

whole area.”

To increase their resilience to these challenges, UTZ has been running the Coffee Climate Care project in partnership with the Douwe Egberts Foundation�and�the�German�Development�Bank�(DEG).�This�project�helps�producers carry out assessments to determine their vulnerability to climate change, and then pilot adaptation practices. Producers are then able to train others in these methods. Photo: Andre BerlinkPage 4 - UTZ

In 2015 our program

reached more than a million

farmers & workers

UTZ�certified coffee, cocoa & tea

are produced in 36 countries

2015 IN ACHIEVEMENTS - Page 5

Page 6 - UTZ

WHAT’S THE IMPACT? Being part of the UTZ program and the adoption of good agricultural practices generally lead to higher yields, bigger incomes and better living conditions for farmers and workers, as well as protection of the environment. These are the findings�of�recent�studies�into�the�impact�of�UTZ.�

Gaining insight into the impact of the UTZ program is crucial for continuous improvement of our standards. That is why we invest in monitoring and evaluation. We collect data directly from producers at the time of their registration, from�auditors�during�the�certification�process�and�through�our traceability system. We also commission independent research organizations to carry out impact studies, evaluating the changes at farmer level.

IMPACT REPORT HIGHLIGHTSFor in depth analysis, visit the impact page on our website.

COFFEE FARMERS IN BRAZILA study of coffee farmers in Brazil found that more than 90% were�satisfied�with�UTZ�certification�and�believed�it�was�worth�joining�the�program.�49%�have�seen�significant�environmental�improvement�due�to�UTZ�certification�practices.�Proper�implementation�of�local�labor�law�results�in�economic�benefits�for workers, with proper legal wages as well as health and social�security�benefits�offered.�BSD�Consulting�and�Ibi�Êté�Consultoria,�“Effects�of�UTZ�certification�according�to�coffee�farmers in Brazil”, 2015.

COCOA FARMERS IN CÔTE D’IVOIRE92% of farmers said they experienced positive changes from certification,�including�better�living�conditions,�better�farm�management, higher yields and bigger incomes. 83% said they had trained workers and relatives in these improved agricultural practices. LEI Wageningen UR, “Impact of UTZ Certification�of�cocoa�in�Côte�d’Ivoire:�Assessment�framework�and baseline”, 2014.

COCOA FARMERS IN INDONESIACertified�farmers�increased�their�productivity�and�the�quality�of�their�cocoa�compared�to�non-certified�farmers,�and�they�said�this�was�thanks�to�training�and�follow�up�support.�Certified�farmers�received�more�than�twice�as�much�training�(7.3�days)�as�non-certified�farmers�(3.3�days)�over�the�two�years�of�the�study. AidEnvironment, “Evaluation of UTZ in the Indonesian cocoa sector”, 2015.

TEA FARMERS IN INDIACertified�tea�farmers�in�the�Tamil�Nadu�region�of�India�reported�the�benefits�of�certification,�stressing�both�the�social�and environmental responsibility and the advantages of better management practices and better market position. Workers�on�certified�farms�were�found�to�have�better�living�conditions and better access to protective equipment. Walter J.V. Vermeulen and Just D. Dengerink, “Impacts of private sustainability�certification�on�practices�of�tea�production”,�forthcoming.

Photo: Kadir van Lohuizen2015 IN ACHIEVEMENTS - Page 7

In 2015our members sourced enough

coffee, cocoa and teato make more than:

28.6 billion cups of coffee14.4 billion bars of milk chocolate

of 100g2.9 billion cups of tea

In 2015,596

new supply chain actorsregistered with UTZ

The UTZ nameappeared on more

than 13,500 products in 136 countries

Page 8 - UTZ

A STRONG MARKET FOR SUSTAINABILITYCOMPANIES TELL THEIR SUSTAINABILITY STORIESThe market for sustainability is stronger than ever. Companies consider UTZ their mark of integrity: it shows consumers that their favorite brand is taking responsibility. Today’s consumers are more informed than ever about sustainability issues, and they are looking for brands that deserve their loyalty and trust. We work with companies to find�engaging�ways�to�tell�their�sustainability�stories.�Here�are�a�few�examples�of�how�it was done in 2015. Nestlé USAEaster�tasted�extra�good�at�Nestlé�USA�this�year,�with the company purchasing enough UTZ cocoa for�its�entire�Easter�chocolate�range�–�a�first�for�a�major US manufacturer. Nestlé�got�the�word�out�about�its�commitment�to sustainability with a campaign combining press, social media and internal communications. A press launch event and outreach to some of America’s leading food bloggers resulted in coverage in many major media outlets.

Messmer, GermanyGerman tea brand Messmer’s range of 50 herbal and�fruit�teas�were�the�first�to�carry�the�UTZ�label�under the new UTZ/UEBT herbal tea program. The company ran a multi-channel campaign to get the news out to business customers and

consumers. Advertising in trade and consumer media and on television was accompanied by direct outreach to 30,000 newsletter subscribers, and a Facebook game and tea quiz offering great prizes. The teas are on sale in Germany, Netherlands, Belgium, Luxembourg, Switzerland, Mauritius, Canada, Latvia, Japan, Korea and Taiwan.

Ikea, globalIKEA gave its sustainability communication a fresh new look in 2015. New packaging, point of sale and wall displays gave a clear message about IKEA’s�commitment�to�sourcing�UTZ�certified�coffee, cocoa and tea.

A PROGRAM FOR THE FUTURE More and more companies are choosing to put sustainability at the heart of their business strategies – and they are working with UTZ to make it happen.

Sustainability around the worldSustainability is a very well established concept in many parts of the world, particularly Western and Northern Europe. In these markets, many companies have long standing sustainability commitments that have seen them scale up their sourcing�of�UTZ�certified�coffee,�cocoa�and�tea.�In 2015, several long-standing members of our cocoa program were active participants in the development of our new program for sustainable hazelnuts. In addition, we’ve seen membership grow with new companies coming on board.

Yet this deep concern for sustainability is no longer�confined�to�certain�markets.�We�are�also�seeing an increase in awareness in Southern Europe – for example, Italy – and all around the globe. There has been strong growth in sales and commitments�in�North�America�and�Asia�Pacific.�We now have many partners in markets such as the USA, Canada, Australia, China and Japan, with particular growth in retail and chocolate brands.

A hub for sustainability expertiseThe UTZ label gives brands and companies space to tell their own sustainability stories, and we work hard to support them in their marketing. In 2015 we launched the Better Business Hub, a digital

content platform that brings together a wealth of expertise in sustainability marketing, sourcing and strengthening your reputation.

Find it here: www.utz.org/better-business-hub

Employee engagementThey say a company is only as good as its people. Therefore, what could be more important than ensuring employees understand the important sustainability choices made by the company?Find it here: www.utz.org/better-business-hub Our employee engagement sessions make sure people not only understand the company’s sustainability program, but are positively inspired to go out and talk about it.

“Now I’ve got some great examples and ideas that make it even easier to

communicate about sustainable farming and why it matters to Kahls.”

Peter Goodman, coffee purchaser at Kahls

30 employees from Kahls Kaffe AB, an importer and producer of coffee and tea, together with sister company, Kahls The & Kaffehandel in Sweden,�were�among�the�first�UTZ�members�to�follow the session.

2015 IN ACHIEVEMENTS - Page 9

MAKING SUSTAINABLE FARMING THE NORMCOFFEE, COCOA, TEA AND BEYOND: NEW PRODUCTS Our goal is to make sustainable farming the norm, so we are building on the strong foundations of�our�certification�program.�In�2015�we�continued�innovating�our�program�by�applying�our�experience�to�new�products.�The�first�herbal�tea�carrying�the�UTZ�logo�hit�the�shelves,�and�important progress was made in hazelnuts and rice. Hazelnuts 2015 saw a major milestone in our new hazelnut program: the�first�hazelnuts�were�traced�from�the�field�to�the�market.

Our hazelnut program was launched in 2014, with the goal of bringing greater sustainability to a sector where child labor is a problem. The focus is on Turkey, which produces 75% of the world’s hazelnuts.

Working closely with our founding members – Migros, Jumbo Supermarkets, Natra and Rewe – we developed a standard for sustainable hazelnuts that has now been implemented�in�the�field�for�two�years.��We�have�started�to explore alignment of the UTZ hazelnut program with Ferrero, who have their own Ferrero Farming Values program for hazalnuts.

Today there are more than 2,100 farmers in the program.

Rice More than a billion people depend on rice production for their livelihoods, and it is the staple food for half the population – more than 3.5 billion people. Supply is not expected to keep up with demand, and there are also environmental concerns. That’s why UTZ started working on sustainable rice, as part of the Sustainable Rice Platform�(SRP).�

2015�saw�the�launch�of�the�world’s�first�standard�for�sustainable�rice,�setting�new�and�more�efficient�standards for rice cultivation.

UTZ led on the development of the standard along with AidEnvironment and the International Rice Research Institute. The standard covers productivity, food safety, worker health, labor rights and biodiversity, and it draws on global experience in other sustainable commodity initiatives such as sugarcane, cotton, coffee and palm oil.

The next step is to pilot the standard and develop a supply chain program in cooperation with the major players in the rice market.

Herbal teaThe UTZ tea program has been running for several years, and�in�2015�the�first�herbal�tea�with�the�UTZ�label�hit�the�shelves.

To make this happen we formed a unique partnership with�the�Union�for�Ethical�Biotrade�(UEBT).�UEBT�is�a�sustainability standard that has been working with herbal tea for many years and has direct experience with these specialty ingredients, as well as an assurance approach for this sector. UTZ contributed its traceability system, the UTZ label, and the link with its existing tea and rooibos program. The joint program enables companies to use�the�UTZ�Certified�logo�for�their�entire�range�of�tea�products.

CERTIFICATION AND BEYOND: THE SECTOR PARTNERSHIP PROGRAMWe�are�building�on�the�strong�foundations�of�certification�with�a�new�program�to�influence�the�sector agenda towards sustainability. Through the Sector Partnership Program we are building the capacity�of�farmers�(especially�smallholders�and�female�farmers)�and�civil�society,�enabling�them�to work with governments and companies.

To make this happen we will work jointly with civil society, governments and companies to strengthen sector wide services and improve policy and regulation, as well as supporting the development of a thriving civil society that can drive change.

We want to ensure that: • Smallholder farmers have better access to

knowledge, tools and services to increase productivity;

• Farmer groups are strengthened and inclusive with regards to smallholders and women;

• Farmers adopt climate change adaptation practices supported by companies and improved government policies;

• Child labor is eliminated;• There is progress towards a living wage for workers,

and the gap between women and men’s wages is reduced;

• Women have equal opportunities and do not face discrimination.

The program plans to engage and work with:• 10 Countries: Guatemala, Honduras, Indonesia,

India, Ethiopia, Côte d’Ivoire, Ghana, Kenya, Malawi, Uganda

• 3 commodities: Tea, Coffee, Cocoa• 6 key themes: Sustainable Productivity, Inclusion of

smallholder interests & Farmer Group strengthening, Gender equality, Climate Change adaptation and water management, Child Labor, Living Wage

• Inclusion of marginalized groups: women, smallholders and estate workers

Page 10 - UTZ

9%of the world’s

cocoa farmers are now

�UTZ�certified

10% of global

coffee productionis now

UTZ�certified

Photo: Nabil Zorkot2015 IN ACHIEVEMENTS - Page 11