ProTerra Certification Ingredients trends: what is driving sustainable

growth

Negative consequences of food production Need to address negative impacts in farming

Need to address negative impacts of postharvest supply chain

Approaches to Sustainability Need for a more Equitable Food System

Consumption patterns that drive production of high-impact foods

Meat and dairy products

Crop waste

Food waste

Approaches to Sustainability Need for a more Equitable Food System

Inequality, coexistence of excess with insufficiency

Environmental damage caused by production

Health problems linked to consumption

Approaches to Sustainability Need for a more Equitable Food System

Source side of economy

Capacity of man-made capital to replace natural capital

Sink side of economy

Capacity of environment to absorb pollution

Neumayer, 2011

Sustainable Use of Land

1. Reputation and brand image (enhancement of brand image and reputation, sometimes the biggest asset of a company);

2. Investor expectations – huge media attention informing consumers about these issues (avoid negative exposure);

Ingredient Trends What is driving sustainable growth

3. Legislative requirements, management of risk and liability, opportunities for environmental efficiencies & cost reduction;

4. Robust manner to defining climate change contribution and strategy – ongoing trends of increasing awareness of sustainability issues for sourcing raw materials .

“Responsible business can be profitable business”.

Ingredient Trends What is driving sustainable growth

Hotel/ Catering

Consumer

Regulation

Food Mfg

Trade Assc

Co-packer

Distribution Centre

Third Party Logistics

Wholesaler

Service Suppliers

Ingredient Suppliers

Retailer

Food Industry

PROTERRA STANDARD V3 Social Responsibility and

Environmental Sustainability

PRINCIPLES CRITERIA

CORE INDICATORS INDICATORS

APPLICABILITY LEVEL I – AGRICULTURE

LEVEL II – TRANSPOT AND STORAGE LEVEL III – INDUSTRIAL PROCESSING

CHAIN OF CUSTODY

PROTERRA STANDARD V3 Social Responsibility and

Environmental Sustainability

PRINCIPLE 1 - Compliance with law, international accords and the ProTerra Standard PRINCIPLE 2 - Human Rights and Responsible personnel policies, labour practices PRINCIPLE 3 - Responsible relations with workers and community PRINCIPLE 4 - Environmental services, effective environmental management plan PRINCIPLE 5 - Genetically Modified Organisms (GMO) not used PRINCIPLE 6 - Pollution and waste managed effectively PRINCIPLE 7 - Water managed conservatively PRINCIPLE 8 - Greenhouse gases and energy managed effectively PRINCIPLE 9 - Good agricultural practices adopted PRINCIPLE 10 - Traceable and segregated Chain of Custody

Farm Audits

Warehouse Transshipment

Audits

Crushing Plant

Port Facilities Audits

Report review

Corrective action plan

Certification decision

Certification Tiers Overview

Retailer Retailer Retailer Retailer

Food Mfg

Food Mfg

Food Mfg

Food Mfg

Food Mfg

Ingredient Supplier

Consumer

Ingredient Supplier

Ingredient Supplier

Ingredient Supplier

Ingredient Supplier

Ingredient Supplier

Ingredient Supplier

Ingredient Supplier

IP IP IP IP IP IP IP IP IP IP IP

F F F F F F F F F F

Example of Analytics Agriculture

100%

0%

100%

0%

100% 100% 100% 100%

0%

20%

40%

60%

80%

100%

120%

Do you plan youractivities to support

the long-termeconomic viability

of your farm?

Is the more tha onesource of income in

the farm?

Have youconsidered the risks

and is this aninformed choice?

Do you have abusiness plan to

optimize the long-term economicviability of the

farm?

Do you keep recordsof yiled, cost, gross

income andprofitability of the

farm?

Jobs are offered firstto qualified people

of the localcommunity?

Land is adequate touse for the grown

crops?

Do you maintainyour equipment andmachinery to ensure

their proper,efficient

functioning?

Economic Stability

Grades Average Producer Average Group

Brazil Forestry Core - Area

Cultivation area in HA

legal reservation area in HA

legal reservation area in HA pending restoration

permanent preservation area in HA

permanent preservation area in HA pending restoration

Example of Analytics Agriculture

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Do you avoid the cultivation and use of invasivespecies? If planting genetically modified varieties, do you

comply with all regulations of the countrywhere they are grown and buyer requirements

where they exist?

Do you keep records of planting and/or graftingmaterial used?

Do you take into account the optimum plantspacing for your local situation?

Do you perform periodic soil sampling tomonitor the changes in soil condition and keep

the sampling records?Do you take measures to avoid soil erosion?

To improve the productivity of your soil, do youtake measures to conserve and improve soil

health?

Do you avoid soil compaction by farm machinesor livestock?

Do you choose organic and inorganic fertilizertype, quantity and application method toincrease nutrient efficiency and reduce

negative environmental and social impacts?

Do you keep records of fertilizer applications?

Technical Management - Cultivation, Soil and Fertilizers

Grades

Average Producer

Average Group

Example of Analytics Agriculture

Agricultural Sustainability Footprint

Ingredient Sustainability Footprint

Sustainability Claim on Consumer Product

SOYBEAN PRODUCTION

SOY ISOLATED PROTEIN

SOY MILK, YOGURT, DESSERT

Example: Soy Industry &

Food Ingredient overview

SOYBEANS

BAKERY

CRUSHED

EXTRACTED CRUDE OIL

EXTRACTED FLOUR/MEAL

FERMENTED

AGRICULTURE

SEED

OTHER INPUTS

EDIBLE OILMISSO, TOFU, OTHER FOOD

LECITHIN SOY SAUCE

MEAT PRODUCTS

CONFECTIONERY

PROTEINS

SOY MILK

THANK YOU!

STICHTING PROTERRA FOUNDATION Jan Steenlaan 5A, Bilthoven 3723 BS, The Netherlands Phone +31 30 320-0228 info@proterrafoundation.org Kamer van Koophandel No: 54459915