Chiquita Publishes Corporate Social Responsibility Report

Chiquita Brands InternationalCorporate Social Responsibility Report • 2009-2012

OUR RENEWED PURPOSE

1 CHIQUITA BRANDS INTERNATIONAL, INC. CORPORATE SOCIAL RESPONSIBILIT Y REPORT • 2009-2012

Table of Contents

CSR at Chiquita: Looking Back, Looking ForwardMessage from Our CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Our Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Message from Our Board Chairwoman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Our Core Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Corporate Responsibility: Our Years of Commitment . . . . . . . . . . . . . . . . . . . . 7Chiquita: The Story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8CSR People at Chiquita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Interview with Corporate Responsibility Officer . . . . . . . . . . . . . . . . . . . . . . 11Our CSR Priorities 2012-2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Our Sustainability Targets for 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Chiquita People: The Key to Our SuccessCompliance Group: Helping to Ensure Ethical and Legal Conduct . . . . . . . . . 15Raising Awareness: Key Role of CSR Training and Education . . . . . . . . . . . . . 17Occupational Health and Safety: Progressing to Target Zero . . . . . . . . . . . . 18Live Chiquita!: Engaging Our Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20COBAL’s Issues Registry: Handling Employee Concerns . . . . . . . . . . . . . . . . . 22Collaboration with Unions: Focus on Women . . . . . . . . . . . . . . . . . . . . . . . . . 24

Environment and Sustainability: Journey with PurposeRainforest Alliance: 20 Years of Collaboration . . . . . . . . . . . . . . . . . . . . . . . . 28Carbon Footprint of Bananas: Working with MIT . . . . . . . . . . . . . . . . . . . . . . 30Sustainable Investment : New Ripening Center in the Netherlands . . . . . . . 32Water Risk and Footprint Assessment with WWF . . . . . . . . . . . . . . . . . . . . . 34GAIN™ Program: Improving Lettuce Farming . . . . . . . . . . . . . . . . . . . . . . . . 36North American Inland Logistics: Sustainable Results . . . . . . . . . . . . . . . . . 37More Sustainable Container Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Mundimar’s ‘Waste to Energy’ Biodigester . . . . . . . . . . . . . . . . . . . . . . . . . . 41Passion Fruit Project: Working with Small Farmers . . . . . . . . . . . . . . . . . . . . 43

Food Safety: Fresh Express’ Intense FocusJames Lugg Center Seeks Continuous Improvement . . . . . . . . . . . . . . . . . . . 47Fresh Express Wins Black Pearl Global Award . . . . . . . . . . . . . . . . . . . . . . . . 48Key Findings from Fresh Express Research Initiative . . . . . . . . . . . . . . . . . . . 49Fresh Express Adopts Integrated FSSC 22000 . . . . . . . . . . . . . . . . . . . . . . . . 517 Steps of Prevention™ Program for Fresh Salad Products . . . . . . . . . . . . . 52

Collaborations and PartnershipsOur Memberships and Participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55Biodiversity Partnerships: ‘With and for the Community’ . . . . . . . . . . . . . . . 56World Banana Forum and Global Social Compliance Programme . . . . . . . . . 58Chiquita Receives REWE Group’s Pro Planet Label . . . . . . . . . . . . . . . . . . . . . 60

Appendix Cross Reference to Global Reporting Innitative Indicators . . . . . . . . . . . . . . 61

CSR Report 2012: Our Renewed Purpose (Contributors) . . . . . . . . . . . . . . . . 63


CSR at Chiquita: Looking Back, Looking Forward

Section at a Glance

This report covers the years 2009-2012. In this first chapter, we provide an overview of our past corporate social responsibility (CSR) work, our policies and plans.

Like prior Chiquita CEOs, Ed Lonergan, who became our chief executive in late 2012, and all of our Board of Directors are strongly support the company’s commitment to high ethical, legal, social and environmental standards. Take a moment to read the messages from our CEO and Chairwoman of the Board. They both make one thing very clear: CSR makes good business sense.

Our CSR work started in 1992, shortly after we were first approached by the Rainforest Alliance with a proposal to apply its sustainable agriculture standard and certification on banana farms. After testing the concept carefully, our management in 1996 committed to achieving Rainforest Alliance certification in all of our Latin American banana farms.

That was the beginning of an effort that has continued and expanded over the past 20 years. In 1998, we formed our Corporate Responsibility Steering Committee to propose, monitor and champion our commitment to high ethical, social and environmental standards across the entire organization.

This committee’s first assignment was to craft Our Core Values. Today they are posted in every workplace and on the back of every business card. Our Core Values set the standard for our conduct as a company and as employees, and are the foundation of our CSR work.

Over the years, we have integrated CSR into our operations, adopted external social and environmental standards, and collaborated with many stakeholders, as summarized in the chart Corporate Responsibility: Our Years of Commitment.

None of this work can be accomplished without the continued support and participation of many employees who help shape our CSR work. We want to acknowledge and thank them for their many contributions in helping us shape and tell the Chiquita Story.

In an interview, Manuel Rodriguez, our corporate responsibility officer, reflects on the challenges of implementing and sustaining CSR in a complex organization.


Dear Stakeholders,I am delighted to introduce this review of our longstanding efforts in the area of Corporate Social Responsibility and Sustainability. It has been some time since we last updated our results and objectives, 2008 to be exact. This Corporate Social Responsibility Report covers the period 2009 to 2012 and provides details on our objectives and plans through 2020. Moving forward, we expect to update our progress annually.

This report sheds light on a company which over two decades has with tenacity evolved a vision of responsible citizenship and ethical conduct. Long before I joined Chiquita, I was aware of this effort to lead an industry with a controversial history into a new era of high ethical standards – and it was a key factor in my decision to join Chiquita.

Over the course of my professional career, I have come to see that companies can indeed do well by doing good; that people, planet and profits, balanced well, are the foundation of a sustainable business over generations.

At Chiquita, Corporate Social Responsibility and Sustainability are core commitments and are embedded in our Purpose. We believe that acting as a good citizen and providing a good return to shareholders are inseparable priorities for operating our business successfully each and every day.

In reviewing this report, several core themes stand out:

Purpose and Values: Our Purpose and Core Values orient all we do, give meaning to our daily activities and provide a guiding ethical orientation to everyone in the company. Our employees take pride in what they do and build incredibly rewarding careers.

Vision: More than 20 years ago, a small group of employees envisioned a better future for our industry and company. Many of those team members continue to lead the change, but with each year, our footprint grows as new minds bring new ideas and opportunities to the framework established decades ago.

Message from Our CEO

‘Our team members have innovated, developed and embraced a multitude of partnerships, collaborations and local initiatives that have empowered local communities and delivered meaningful improvements to our company.’Ed LonerganChief Executive Officer


Our Purpose• Improve lives by producing healthy and convenient foods that taste great while creating oppor tunities

for our employees to grow and thrive.• Love our planet by continuing to reduce our environmental impact and ultimately contribute to a world

capable of effectively sustaining future generations.• Lead the industry and sustain profitable growth by creating value for our customers, consumers,

communities, and other stakeholders.

Consistent Effort: 20 years of collaboration with the Rainforest Alliance, 12 years operating under the Framework Agreement signed with the industry’s trade union federations, and nine years of continuous SA8000 certifications of Chiquita’s owned farms exemplify the long-term nature of our CSR work. We believe that long partnerships and sustained commitments are the only way to reshape our footprint meaningfully

Creativity: Our team members have innovated, developed and embraced a multitude of partnerships, collaborations and local initiatives that have empowered local communities and delivered meaningful improvements to our company.

Commitment: Since October 2012, I have witnessed first-hand the steadfast conviction and resilient spirit which has kept this effort going through good and difficult times.

Such achievements are only possible because of the dedication and support of the men and women working in the fields and in management everywhere across this organization. Inspired by their example, I will gladly build on the work of my predecessors, providing leadership, encouragement and willing hands.

If we do well, we will harvest rewards in terms of business performance, as well as benefits for our employees, communities and the environment. Our new Statement of Purpose sends a signal that ethical conduct and social responsibility are here to stay. And I hope that you will join me in my conviction that Chiquita is now better positioned to improve our business and face the challenges ahead in ways that help sustain the natural resources of our planet today and in the future. We welcome your comments and ideas on how to continue improving our performance. Please write to us at [email protected].

Thank you again for your generosity and for your interest in Chiquita. We are grateful for your trust; it underpins all we do here.

Sincerely,

Edward F. LonerganPresident and Chief Executive OfficerChiquita Brands International

mailto:csr%40chiquita.com?subject=Chiquita%20CSR%20Report


Message from Our Board Chairwoman

‘While significant progress has been made, our Board of Directors, the management team and our employees know that our journey is never complete, and we have set stretch goals for further improvement in the years ahead across our operations.’

Chiquita has substantially transformed our environmental and social per formance in the more than 20 years since we initiated a comprehensive Corporate Social Responsibility and Sustainability program.

While significant progress has been made, our Board of Directors, the management team and our employees know that our journey is never complete, and we have set stretch goals for fur ther improvement in the years ahead across our operations. This work is consistent with the company’s duties as a global citizen and is at the same time an essential component of our business strategy and the deliver y of our stakeholders’ expectations.

The Board suppor ts the publishing of a global Corporate Social Responsibility Repor t to enhance our transparency and acknowledge the many par tnerships and collaborations that enable us to contribute to the well-being of the communities we ser ve.

We believe our stakeholders will be pleased to see the substantial progress made during this repor ting period, and we look for ward to communicating future progress.

Sincerely,

Kerrii B. Anderson Chair woman Board of Directors Chiquita Brands International

Kerrii B. AndersonChairwoman, Board of Directors


Integrity• We live by our Core Values.• We communicate in an open, honest and straightforward manner.• We conduct business ethically and lawfully.

Respect• We treat people fairly and respectfully.• We recognize the importance of family in the lives of our employees.• We value and benefit from individual and cultural differences.• We foster individual expression, open dialogue and a sense of belonging.

Opportunity• We believe the continuous growth and development of our employees is key to our success.• We encourage teamwork.• We recognize employees for their contributions to the company’s success.

Responsibility• We take pride in our work, in our products and in satisfying our customers.• We act responsibly in the communities and environments in which we live and work.• We are accountable for the careful use of all resources entrusted to us and for providing

appropriate returns to our shareholders.

We take pride in our work, in our products and in satisfying our customers.

Our Core Values


Certification to Leading Standards

Environment (Rainforest Alliance) 1992 – Initial Rainforest Alliance Engagement

1994 – First 2 owned farms certified in Costa Rica

2000-2012 – 100% owned banana farms certified

2012 – 66% of pineapple volumes certified

2012 – 20 years with Rainforest Alliance

Labor (SA8000)

2002 – Owned farms certified in Costa Rica

2003 – Owned farms certified in Colombia and Panama

2004-2012– 100% certification owned farms

Food Safety (Global G.A.P.)2003 – Owned farms in Colombia,

Costa Rica & Panama certified

2005-2012 – 100% owned farms certified

Oversight & Compliance1998 – CR Steering Committee

1999 – New Core Values

2000 – Expanded Code of Conduct

2000 – Corporate Responsibility Officer with Board Oversight

2001 – Code of Conduct Training Worldwide

2003 – Annual Code of Conduct Compliance Certification

2004 – Independent Chiquita Helpline

2005 – Chief Compliance Officer with Audit Committee Oversight

2006 – Online Compliance Training

2009 – Global Sustainability Council

2011– Employee Volunteer Program

Stakeholder Engagement2001 – IUF/COLSIBA/Chiquita Agreement

2002 – Business for Social Responsibility

2002 – Ethical Trading Initiative

2003 – Social Accountability International Advisory Board

2004 – Citizens of Americas Award

2004– Nogal Project with Migros & GTZ

2005– WWF Mesoamerican Reef

2007– Corporate IFC Labor Advisory Group

2009 – Biodiversity Partnership with REWE, GIZ, CORBANA

2007 – Global Social Compliance Program Executive Board

2009 – World Banana Forum Founding Member

2010 – Carbon Footprint with MIT

2010 – Fresh Express Wins Black Pearl Award for Food Safety & Quality

2011 – Women’s Committee with IUF & COLSIBA

2011 – IPL/ASDA Join Nogal Project

2012 – Water Footprint with WWF

Corporate Responsibility: Our Years of Commitment


Chiquita: The StoryChiquita has been growing bananas in Latin America since 1899, bringing a reliable year-round supply of this healthy, delicious fruit to consumers across the globe. Following our acquisition of Fresh Express in 2005, we have added another nutritious category to our legacy – industry-leading Fresh Express packaged salads.

Our company’s iconic blue label (featuring Miss Chiquita) is known the world over. But 114 years on, we recognize that our company hasn’t always behaved with the ethics and transparency we today expect from a company or ourselves. Much has been written or assumed about Chiquita’s past – not all of it correct. Here we tell our story, because acknowledging our complex past is the best way to open an honest dialogue about our present and future.

Bananas are the world’s number one export fruit and the fourth most important food crop after rice, wheat and maize. In order to meet this demand, Chiquita has its own farms, works closely with independent suppliers and sells more than 10 billion bananas each year. As such, Chiquita has a direct impact on the environment and communities in Latin America where approximately 40,000 men and women are employed in banana production on Chiquita’s own and supplier farms.

Over the last 20 years, Chiquita has actively invested in its social, as well as economic, responsibilities and developed a corporate social responsibility (CSR) program that includes the adoption of authoritative external standards and independent assessment of our performance. We have obtained Rainforest Alliance certification of our farms and those of many suppliers, and subsequently also adopted Social Accountability International’s SA8000 labor rights standard with the corresponding certification and annual assessment of all of our owned farms in Latin America. Our International Framework Agreement with global and regional trade unions sent a clear signal of our serious intent. These and other efforts have not only been good for the environment and employees, they have also increased our ability to operate successfully in a competitive marketplace. We now know that acting as a good corporate citizen generates substantial returns on our investments, positive returns to shareholders and is inseparable from operating our business successfully.

In the past, our reputation was not what we aspire to today. Indeed, in our Corporate Responsibility Report issued in 2000 (Page 92), we acknowledged a number of the darker moments in our

history. And in our 2008 report (Page 34), we described the dilemma we faced in Colombia during the violent conflicts of the 1990s. We have learned from that history, and it has helped form the basis of our commitment to high ethical standards.

Societal norms, technology and environmental awareness all have advanced significantly over the past decades, and that pace of change will only continue to quicken. Today, Chiquita has a new generation of leaders doing all they can to ensure we learn from the lessons of the past and incorporate those learnings into all of our operations.

But we also recognize the many positive things that the company has accomplished. Throughout our early history, we built railroads, houses, hospitals, ports, ships and all manner of infrastructure to bring bananas to global markets. We created thousands of jobs and contributed to the social and economic development of many rural and underserved areas of Latin America. We have contributed to the control of malaria and provided schools, health care and year round employment to thousands of local inhabitants wherever we have engaged in banana production.

When nongovernmental organizations (NGOs) began championing the notion of a better world for us all, our industry -- characterized by labor-intensive farms in developing countries, and with a reliance on overseas transportation of tropical fruit -- had to reflect on how to address these social and environmental issues.

The turning point came in the early 1990s when David McLaughlin, then general manager of our Costa Rican operations (now with the World Wildlife Fund), along with other like-minded colleagues, decided to test a pioneering plan conceived by the Rainforest Alliance, an international NGO dedicated to conserving rainforest biodiversity and ensuring sustainable livelihoods.

The Rainforest Alliance was created in 1987 and unlike any other NGO at the time, was able to show companies like Chiquita how to change working practices for the better -- better for business, the environment, employees and the communities in which they operated.

http://www.chiquita.com/getattachment/d13227d3-aad0-42e8-a0ff-04d615deff2f/2000-Corporate-Responsibility-Report.aspx

http://www.chiquita.com/getattachment/1374dd80-2541-43fc-9639-7ce50524c62c/2007-2008-Annual-Report-Corporate-Responsibility.aspx

We wish to express our gratitude to our pioneering colleagues at Chiquita who started us on our CSR journey:

Steve Warshaw,President and COO1996-2002

Jeff ZallaChiquita’s first Corporate Responsibility Officer2000-2003

David McLaughlinSenior Director Environmental and Social Performance1997-2006

In 1991, nearly a decade before other NGOs became involved in the banana industry, the Rainforest Alliance began urging banana producers to implement its new standard for sustainable banana production. Certification would only be granted if farms met the Rainforest Alliance’s strict environmental and social standards, as measured by independent annual audits with full access to all workplaces, documents and employees. When the idea was first presented to the banana industry, there was much skepticism about what seemed to be a long and unrealistic list of social and environmental requirements.

Yet in 1992, Chiquita became the first major banana company to agree to collaborate with the Rainforest Alliance. Although implementation of the system required considerable expense and effort, Chiquita saw first-hand the many rewards of the program, from a healthier, more engaged and productive workforce to a better product for the consumer.

In 1996, Chiquita’s chairman committed to expanding the program to all of our owned farms. After an upfront investment of $20 million and continued investment over the years, 100% of our company-owned farms have been Rainforest Alliance Certified since 2000 and today the majority of our supplier farms are also Rainforest Alliance Certified. This certification is a signal that Chiquita bananas are grown with respect for the environment and that our employees receive fair wages as well as enjoying good working conditions.

In 2001, our company signed an International Framework Agreement with two leading labor federations: the International Union of Food Workers (IUF) and COLSIBA, the coordinating body of Latin American banana workers unions. This agreement has led to productive and positive labor relations throughout our operations. It is the only such agreement in our industry.

Another milestone was our adoption of Social Accountability International’s SA8000 social standard and achieving SA8000 certification on all our owned farms since 2004. Based on the principles of international human rights conventions, SA8000 is a

tool that guides us in applying these norms to practical work-life situations.

We have continued to build on our experience of working to meet independent, third-party standards and independent assessments in our work with other organizations, such as the World Wildlife Fund and the Massachusetts Institute of Technology (MIT). In recent years we have seen our collaborations expand to include customers in Europe such as the retailers MIGROS and REWE, the German government’s Gesellschaft Für Internationale Zusammenarbeit (GIZ) and the governments of the countries in which we produce bananas. This report illustrates many of these initiatives.

The FutureIn October 2012 we welcomed a new CEO, Ed Lonergan. In his previous roles, Ed has been a strong advocate of sustainability. Ed was impressed by Chiquita’s commitment to its people and high ethical standards, which is one of the reasons he joined the company. As he tells it: “At Chiquita we are committed to growing and selling the best tasting bananas, produced under good working conditions by loyal and motivated employees. Our bananas are grown in a way that is respectful of the environment and local communities, in strict compliance with all applicable laws, consistent with being a good and responsible citizen. But we also recognize that we still have much work to do to meet today’s sustainability challenges, especially those of reducing greenhouse gas emissions and water use. In doing that, we will be guided by our new Statement of Purpose:

‘Improving Lives - Loving our Planet – Leading our Industry’

Over the course of my professional career, I have come to see that companies can indeed do well by doing good… that people, planet and profits, balanced well, are the foundation of a sustainable business over generations.If we do well, we will harvest rewards in terms of business performance, as well as benefits for our employees, communities and the environment. Our new Statement of Purpose sends a signal that ethical conduct and social responsibility are here to stay.”

9 CHIQUITA BRANDS INTERNATIONAL, INC. CORPORATE SOCIAL RESPONSIBILIT Y REPORT• 2009-2012

Photo by: Jill Hatzai, WWF US

http://www.chiquita.com/Chiquita/documents/CSR/IUF-english.pdf



CSR People at Chiquita

Corporate Responsibility OfficerManuel Rodríguez, Senior Vice President Government & International Affairs and Corporate Responsibility Officer

Corporate Compliance OfficerAllyson Bouldon, Vice President Chief Compliance Officer

Joint Compliance Committee*CEO’s Operating Committee; Allyson Bouldon, Vice President Chief Compliance Officer; Juan Rivera, Vice President Internal Audit

Corporate Responsibility Steering Committee*Manuel Rodríguez, SVP Government & International Affairs and CR Officer. Chair Allyson Bouldon, Vice President Chief Compliance Officer Thelma Rockhold, Vice President, Corporate Human ResourcesJorge Solergibert, Assistant General Counsel, Latin America George Jaksch, Senior Director, Corporate Responsibility and Public Affairs Europe & Middle EastEd Loyd, Director of Corporate Communications and Corporate Social ResponsibilityKaren Pati, Category Manager, North AmericaJose Luis Valverde, Vice President Tropical Owned ProductionIrene Sandoval Arce, Senior Communications and Corporate Responsibility Specialist Nolan Quirós, CR Manager, Latin AmericaRonald Romero, Director, Research and Development Tropics

CSR Sustainability TeamsLatin America North AmericaEurope & Middle East Global Sustainability CouncilResponsible Sourcing Committee*Meets 4 times a year


WHAT ARE THE KE Y LESSONS YOU DRAW FROM YOUR EXPERIENCE OF IMPLEMENTING CORPORATE SOCIAL RESPONSIBILIT Y?

We continue to believe in the impor tance of a strong foundation of our Corporate Social Responsibility and Sustainability program:

• Creation of our Core Values of Integrity, Respect, Opportunity and Responsibility, which are on our business cards and posted in every workplace, was key. Our Core Values serve as an ethical compass for every employee

• Strict compliance with all applicable laws is fundamental• Active support from our CEO, Board, managers and

employees is essential. Building and maintaining a strong consensus on the importance of our CSR work ensures that we remain focused as circumstances change

• Adoption of external standards, with independent assessment of our performance, has been another essential principle. Our work with the Rainforest Alliance and SA8000 standards has been critical to the credibility of our commitment

• Regular training and education of everyone in our company continues to be a cornerstone of our commitment to high ethical standards

• Dialogue and collaboration with civil society organizations are incredibly valuable. Eleven years ago, we signed an International Framework Agreement with the International Union of Food Workers (IUF) and the coordinating body of Latin American banana workers trade unions (COLSIBA), which is still the only such agreement in our industry. In

2009, we joined the World Banana Forum (WBF) as a founding member, as well as the Global Social Compliance Programme (GSCP).

ARE CSR AND SUSTAINABILIT Y BECOMING MORE IMPORTANT TO CUSTOMERS AND CONSUMERS?

CSR and Sustainability issues are important for consumers and retailers in many European countries, and leading North American companies increasingly seek to integrate CSR into their business models, products and communications. A good example is the Global Social Compliance Programme where retailers and suppliers work with an advisory board of nongovernmental organization (NGO), labor and academic representatives to cooperate on high standards in their businesses and supply chains. Chiquita is a member of GSCP’s executive board.

IS YOUR COMPANY’S CSR WORK PROVIDING BUSINESS BENEFITS?

Undoubtedly, CSR and Sustainability increasingly drive business opportunities and differentiate our products. CSR is an important consideration for customers, investors and employees. It helps us acquire and maintain customers, improves our access to the financial markets, and supports our efforts to attract and retain top talent.

Our consistent focus on CSR has helped to strengthen the company’s brand. Our work with the Rainforest Alliance – sustained for over 20 years – has been a significant factor,

Interview with Corporate Responsibility Officer

Manuel RodriguezCorporate Responsibility Officer

‘CSR and Sustainability are an integral part of our company purpose and long-term strategy, which is reflected in our CSR leadership structure...’


as have our commitments to SA8000 and our 10-plus year collaboration with the IUF and COLSIBA trade union federations.

Sustainability has enabled us to reduce some operating costs. To the extent we reduce the use of energy and water, packaging and plastics, fertilizers and chemicals, we improve productivity and help our bottom line.

WHAT IS THE REACTION OF YOUR EMPLOYEES?

CSR is important to the men and women at Chiquita. They take pride in working for a company that they feel is doing the right thing. Our employee surveys have demonstrated the importance of our CSR program and their interest in participating. When we recently launched our online CSR training module, over 60 percent of those responding expressed interest in participating actively in this work. Increasingly we invite them to contribute. Our CSR and Sustainability work is also a critical factor in our recruitment of employees.

Our new volunteer program has inspired many employees across the world to support good causes in their local communities.

IN 2002, CHIQUITA SIGNED AN INTERNATIONAL FRAMEWORK AGREEMENT WITH THE IUF AND COLSIBA. WHAT IS THE STATUS OF THE AGREEMENT NOW OVER 10 YEARS LATER?

The Joint IUF/COLSIBA/Chiquita Review Committee meets at least twice per year to oversee the application of this agreement, and I have participated in every meeting. Our constructive dialogue on labor relations has replaced the distrust and disruptive confrontations of the past. We’re pleased that all collective bargaining agreements have been renewed without major conflicts.

In 2011, we established the IUF/COLSIBA/Chiquita Women’s Committee to promote gender equality. This initiative was well received at the 2012 World Banana Forum conference in Ecuador, where we participated in the First Women Banana Workers Encounter.

HOW DO YOU MANAGE YOUR CSR EFFORTS IN A GLOBAL ORGANIZATION?CSR and Sustainability are integral parts of our company purpose and long-term strategy, which is reflected in our CSR leadership structure and internal reporting process.

I report to the CEO. As chair of the Corporate Responsibility Steering Committee and corporate responsibility officer, I report quarterly to the CEO and Operating Committee, which owns the management responsibility for compliance and corporate responsibility. In addition, our broadly representative CR Steering Committee prioritizes issues and opportunities, and provides guidance to the CEO, Operating Committee, business units and the Board. Our vice president and chief compliance officer is also a member of the steering committee and active in our CSR initiatives.

Our Board has created a new Food Safety, Technology and Sustainability Committee, which has oversight and responsibility over the CSR/Sustainability function.

To further enhance our structure at the local level, we have formed several teams, such as the Global Sustainability Council and Regional Sustainability Teams in Europe, North America and Latin America.

WHAT WOULD YOU SAY ARE THE MAIN CHALLENGES FOR YOUR CSR WORK, MORE THAN 20 YEARS AFTER INITIATING THE JOURNEY?

While we have made good progress, exciting challenges remain:

• To strengthen our employees’ involvement with more local CSR initiatives and broadly sharing creative CSR efforts

• To make substantial progress toward our declared goals in Sustainability as well as health and safety

• To communicate more effectively to a wider public about our CSR work

• To roll out our Responsible Sourcing strategy in defined stages to our global procurement activities, building on our experience in the banana business.

See The Economist article on Chiquita. Please view our video to learn more.

http://www.economist.com/node/21551500

https://vimeo.com/channels/chiquitacsr/41706255


Sustainability • Primary focus: Emissions/Energy, Water• Focus on 2020 reduction targets • Company-wide integration• Maintain farm certification programs• Build new and strengthen existing alliances

Suppliers• Implement revised Responsible Sourcing strategy

Employees• Engage employees: More information and participation• Health and Safety: Target Zero program• Diversity program: Opportunities for women• Productive labor relations locally and with Framework Agreement partners• Sustain and strengthen legal and Code of Conduct compliance and training

External Stakeholders• Active role in selected organizations• Regular reporting and communication on CSR work

Our Sustainability Targets for 2020 from a 2007 baseline

Water: 15% fresh water use reductionEmissions: 30% carbon emissions reduction

Our CSR Priorities 2012-2015


Chiquita People: The Key to Our Success

In implementing our CSR programs, we aim to foster a culture of ethical conduct and responsible citizenship throughout the entire organization, reflecting our Core Values of Integrity, Respect, Opportunity and Responsibility and our Code of Conduct.

The 20,000 men and women who work at Chiquita come from many countries and cultures and speak numerous languages – a diverse community reflecting the international character of our company.

This part of our report illustrates how we inform employees about their rights and responsibilities, support their health and safety at work, and encourage them to participate and express their opinions.

Complying with the law and our Code of Conduct is an essential foundation of our CSR work. We strive to make sure that everyone in the company is aware of these principles and his or her corresponding personal responsibilities. Allyson Bouldon, our vice president and chief compliance officer, reports on the work of her department, with a special focus on the Compliance Helpline and training programs.

Training and educating our 14,000 banana production employees is a major part of our CSR work. Every manager, supervisor and worker receives in-person training every year, several times per year. This training goes far beyond the daily tasks to include topics such as: • Our Core Values• Rights and duties of employees• Health and safety• Environmental responsibilities• Respect in the workplace• Use of the Helpline

Chiquita’s occupational health and safety (OHS) program is a cornerstone of our CSR work. In our 2008 Report, we highlighted the commitment to high health and safety standards made by the senior managers responsible for our operations in Latin America. The OHS team is even stronger now and continues to make substantial progress.

Our Live Chiquita! initiative began in 2011 and has engaged and motivated employees – with remarkable results! Chiquita’s new Volunteer Time Off program enables employees to devote one paid day each year working on community projects, including many related to corporate responsibility and sustainability.

Productive and stable labor relations with our workers and their representatives are essential for our business. Over 60 percent of Chiquita’s banana production employees are members of trade unions, and we negotiate and renew collective bargaining agreements on a regular basis. Chiquita’s International Framework Agreement signed in 2001 with the global and regional trade union federations, the IUF (International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations) and COLSIBA, the coordinating body of banana and agro-industrial unions, has continued to deliver constructive dialogue and serves as an effective forum for the resolution of local union-management disagreements.

In 2011, the Joint Review Committee, which monitors the implementation of this agreement, founded the Women’s Committee which focuses on gender issues.

Section at a Glance

http://www.chiquita.com/The-Chiquita-Difference/Ethics-Codes-of-Conduct.aspx

http://www.chiquita.com/Chiquita/documents/CSR/Overview%20of%20VTO%20activities%20Chiquita%20rev%2024%2010%202012%20(3).pdf



Compliance Group: Helping to Ensure Ethical and Legal Conduct

Chiquita is committed to conducting its business operations ethically and legally in the communities in which it does business around the world.

At Chiquita, we do not tolerate harassment or discrimination, as is clearly stated in our Code of Conduct. Harassment and discrimination against others based on age, race, national origin, gender, disability, union membership, pregnancy and similar factors are prohibited. By policy, we also prohibit conduct that is offensive and inappropriate, even if this behavior does not rise to the level of unlawful harassment. Bullying and mobbing are examples of this type of offensive and inappropriate conduct.

Bribery and other illegal behaviors in commercial transactions are not tolerated. In addition, prompt reporting of potential or actual conflicts of interest is required so that appropriate inquiry and resolution can occur.

Chiquita’s Compliance Group provides Helpline reporting support, training, policy development and interpretation, and other assistance to help ensure global compliance with key laws and regulations. The Group also helps to spread awareness of the company’s ethical standards and commitment to corporate responsibility, both within and outside of the organization.

The Group’s key responsibilities include: • Helpline operation • Online and other training • Code of Conduct and other policy guidance and compliance • Key policy ownership and monitoring of related laws

• Data privacy compliance • Foreign Corrupt Practices Act (FCPA) certifications

and reporting • FCPA and other anti-bribery, anti-corruption guidance • Conflict of Interest certifications and reporting • International trade sanction vendor screenings • Internal investigations • Records retention • Internal and external reporting • Compliance Program monitoring and effectiveness assessment• Compliance risk assessment.

Management encourages employees to raise questions and concerns to supervisors, to Human Resources personnel, through Chiquita’s Helpline and through other sources.

The Helpline claim categories are bribery/corruption, conflicts of interest, financial misconduct/fraud, human resources/employment relations, privacy and confidentiality, retaliation, and safety/security.

‘Chiquita is committed to conducting its business operations ethically and legally in the communities in which it does business around the world. ‘

Allyson Bouldon Cheif Compliance Officer


The Chiquita Helpline is:• Operated by an independent third party. Phone calls and

emails are received and initially processed by independent third parties

• A way to report concerns or ask questions with confidentiality (and anonymity where permitted by local law) protected to the fullest possible extent

• Available by phone or email, 24/7, in any language. Collect calls are accepted.

Helpline Reports By Year2008 2009 2010 2011 2012

Total Reports Received

135 111 156 172 141

Claims are promptly investigated under the supervision of the company’s chief compliance officer. Approximately 40 percent of investigations result in some sort of corrective action including improvements to our policies and procedures. Depending on the severity of the matter, corrective action can include disciplinary measures, up to and including termination. Corrective action is used for both substantiated and unsubstantiated claims as part of our commitment to an ethical workplace.

Chiquita does not tolerate retaliation against persons who raise concerns in good faith or who may participate in investigations, whether as investigators, witnesses, decision makers or in other roles. Anyone with concerns about retaliation is encouraged to report them.

2012 Corrective Action* Action Taken TotalDisciplined (other than termination) 28.4%Termination 9%Performance Improvement Plan 6.8%Policy Review 20.5%Reassignment/Transfer 3.4%Training Required 31.8%

* Based on all 2012 closed (as of March 2013) cases, both substantiated and unsubstantiated.

Employee Training ProgramsTraining is a major part of Chiquita’s effort to help all plant, office and field employees understand their professional responsibilities. Training is provided through a variety of means including live, webcast, written and online courses. Extensive online training is provided to our employees who have email access, which is a total of over 3,925 active users. Each of these employees can expect to receive between four and eight courses per year.

There were six online Compliance courses in 2011, up from four the previous year. The 2011 Compliance course completion rates were 90 to 100 percent. Employee Relations training tripled to six courses in 2011, with completion rates of 93 to 100 percent. Some of the topics covered in these online trainings included conflicts of interest and gifts, insider trading, Chiquita’s Code of Conduct, equal employment opportunity, data privacy, antitrust, creating a harassment-free workplace and preventing sexual harassment.

Chiquita’s chief compliance officer has a direct reporting relationship to the chair of the Board of Directors’ Audit Committee. Day-to-day reporting is to the senior vice president and general counsel. The Compliance Group works closely with the company’s Human Resources, Internal Audit, Corporate Communications, Legal and Corporate Social Responsibility Groups.

The chief compliance officer serves as a member of the Corporate Responsibility Steering Committee and chairs the company’s Compliance Committee. The company’s Compliance Committee consists of our Operating Committee, which is composed of our chief executive officer and his direct reports, as well as the vice president of internal audit and the chief compliance officer. The Compliance Committee meets a minimum of four times each year.


Raising Awareness: Key Role of CSR Training and Education

Every employee participates several times a year in training and information programs related to the ethical responsibilities of employees and the company.This training began with Rainforest Alliance certification, was strengthened by the SA8000 social standard, which also requires employee training, and includes legal compliance and Code of Conduct training.

Here are the statistics of our in-person training program for the men and women working in banana production*:

2010 2011 2012

Social, Environmental, Good Agricultural Practices 23,584 32,811 29,845

Occupational Health and Safety 15,844 20,288 25,819

Company Regulations 2,012 1,485 1,934

Total 41,440 54,584 57,598

* For online training statistics for employees with email access (not included here), see the article on the work of our compliance department.


Worker health and safety at all of our locations around the world are very important to our company, our employees, their families and communities. Providing safe and healthy working conditions is one of our core social responsibility commitments and an essential component of the certification standards (Rainforest Alliance, SA8000 and GLOBALG.A.P.) we use in our tropical operations.

We believe that all injuries are preventable and are committed to practices that seek to ensure safe and healthy working conditions in all company workplaces. Through Chiquita’s injury-reduction initiatives, we continue to develop and refine programs to safeguard the health and safety of our employees. Our target is zero occupational health and safety (OHS) incidents within our operations, and we will not rest until we achieve this objective.

Our Safety Record 2009-2012In 2008, our Latin America leadership publicly committed to making substantial improvements in the conditions impacting the occupational health and safety of our employees and contractors.

Our progress since 2008 has been significant and continues into 2013:• Since 2008, we have deployed a full-time OHS specialist at each of our Latin American farm divisions and port operations• Our Latin American operations achieved a 62 percent reduction in health and safety incident rates between 2008 and 2012, as

measured by the OSHA recordable incident standard. In 2012 there were more than 2,500 fewer safety incidents requiring medical treatment greater than first aid or days away from work across our Latin America operations compared to 2008. (OSHA is the U.S. government’s Occupational Safety and Health Administration. OSHA aims “to assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance.”)

• At our North American operations, new safety programs and a focus on employee engagement have led to consistent annual improvements with a 12 percent reduction in OSHA recordable incident rates in 2012 compared to 2008, and a 40 percent reduction since 2002

• Several Chiquita facilities in North America and Latin America have achieved meaningful safety milestones as measured by hours or days worked without a lost time incident.

We also acknowledge that sadly there were six contractor fatalities during the years 2008 to 2010 in our Latin America port operations. Since 2011 however, Chiquita has been free of employee or contractor fatalities at all company facilities due to the focused efforts of our 20,000 employees and more than 3,000 contractors. Key Factors Driving Our Improved Safety Results

Occupational Health and Safety:Progressing to Target Zero

2009 – Salinas, California Plant - 3 million hours2011 – Morrow, Georgia Plant - 1 million hours2011 – Chicago, Illinois Plant - 1 million hours2011 – Puerto Barrios, Guatemala - 1 million hours2011 – Port Everglades, Florida - 1,000 days2012 – Grand Prairie, Texas - 1,000 days

2012 – Puerto Barrios, Guatemala - 1 million hours2012 – Macrolotes Facility, Guatemala - 1 million hours2013 – Morrow, Georgia Plant - 1 million hours 2013 – Puerto Barrios, Guatemala - 1 million hours2013 – Harrisburg, Pennsylvania Plant - 1 million hours

Chiquita Safety Milestones – No Lost Time Incidents

https://www.osha.gov/index.html


Increased leadership focus in our Latin America operations:• Active management involvement at all levels• OHS targets included in leadership goals and key

performance indicators• Significant time and resources invested in training events • Important investments in infrastructure and personal

protective equipment to maintain appropriate safe working conditions in all operations

• Management-employee safety committees in each location • Close coordination and collaboration between our North

America and Latin America OHS teams• Circulating monthly compliance and behavior audit results • Sharing best practices• Benchmarking against comparable companies and activities• All of Chiquita’s NA and LA operations are using the OSHA

recordkeeping criteria• Focus on root cause analysis• Training and program emphasis placed on primary types of

incidents incurred in the previous quarter and year.

Target Zero: Our OHS Destination2013 marks the launch of our Target Zero initiative at every Chiquita farm, port, manufacturing location and distribution facility across North America and Latin America. Each launch was unique to the facility and gave employees an opportunity to learn about the initiative and for many an opportunity to sign a banner expressing their commitment to working safely.

Our objective is to have zero safety incidents. With the number of people we employ, that’s a challenge to achieve, but it is very possible to make improvements every single year in how we operate and in the number of incidents. To get there, we will strive to deliver a 10 percent reduction in employee injuries every year in every location. Our Target Zero program provides clear guidance for all leaders of employees and will become our safety platform for many years to come.

Target Zero: Leader ExpectationsCommitment• Commit time to employee and contractor safety • Show by your actions that “Safety Is Important at Chiquita!”

Educate• Help broadly share knowledge on “how to work and live

safely” • Provide training that is simple, practical and effective

Own and Develop Our Safety Culture• Share in the belief that every incident is preventable• Encourage and recognize employees for providing

improvement ideas

Perform• Deliver a 10 percent reduction in employee injuries every year • Recognize great performance

We are proud of our progress to ensure safe and healthy working conditions in all company workplaces and are extremely committed to continued improvement. Ed Lonergan, Chiquita’s new chief executive officer, recently said it this way:

“It has been a surprise to me how strong the safety practices at Chiquita are. The good news is that we operate very well in complicated situations and have made tremendous progress in the last several years in improving the safety performance of this company.

My objective is to keep that momentum going with an ultimate target of zero employees being injured on the job. For 2013, and for every year after, we want to reduce injuries by 10 percent per year. This will require that we learn from every incident and focus on continually improving both our workplaces and our processes.”


Live Chiquita!: Engaging Our Employees

With employees all over the world, Chiquita has rich diversity. The support and dedication of each and every employee is essential for the success of our company. We strive daily to create a work environment that reflects the company’s purpose and values and inspires employees to help deliver that purpose and values in not only the places where we work, but across the communities where we live.

In 2011, the Live Chiquita! initiative was designed to create a company culture to inspire our most valuable asset—our employees. Live Chiquita! has three pillars to energize hearts, engage minds and encourage success.

Go Chiquita - Energize HeartsFoster a culture of health by providing employees and their families with the knowledge and tools to make sound nutrition decisions and lead healthy lifestyles.

Be Chiquita - Engage MindsStimulate and engage our people’s spirit and minds. Be Chiquita speaks to what we invest and believe in for our employees: personal and professional development, diversity and employee safety by acting responsibly in the communities in which we live, work and operate.

Love Chiquita - Encourage SuccessEncourage success through storytelling….real stories about our consumers, employees, and products.

Employee SurveySince 2010, Chiquita has conducted annual employee surveys with the aim of measuring employees’ attitudes about the company and our work environment. The target audience of these surveys has been more than 2,500 employees with email access globally. The response rate has exceeded 70 percent.

The survey indicated many employees want to be better informed about the company’s CSR programs, and to have more opportunities for personal participation. An important insight from the survey was that employees consider corporate responsibility a significant source of motivation and engagement, and are proud of Chiquita’s work to address social and environmental issues. Recently, 2,500 employees in Latin America, Europe and North America participated in our new online training on corporate responsibility and sustainability, and over 60 percent expressed an interest in personally engaging in our CSR work.


The Pulse In 2011, we created The Pulse, a select group of employees from all organizational levels, regions and functions that support and advocate the Live Chiquita! engagement plans. They work with team members and facilitators to generate employee engagement ideas linked to Chiquita’s purpose. The Pulse was established to develop a bottom-up initiative, empowering employees to become positive change agents and to create a spirit of community.

The Pulse has been a source of valuable company-wide initiatives. For example:• The Volunteer Time Off Policy (one paid day per year to volunteer for a nonprofit organization). There are many examples of

volunteer activities (see below)• Online corporate responsibility training was piloted in Europe in 2011 and implemented company-wide in 2012. This

training illustrates the responsibility of business as a citizen in today’s world, highlighting some of Chiquita’s best practices and commitments to CSR, and inviting employees to become agents of change and make a positive local contribution as a CSR ambassador. More than 10 percent of Chiquita employees in Europe volunteered to become CSR ambassadors.

The Pulse teams and the new volunteer programs also produced many local initiatives, such as: • Marathon training • Updated locker rooms with showers to support physical activity• Discounts for fitness club memberships• Fresh fruit and coolers available in North America locations• Waste recycling programs• Country hikes for employees and families • Stopping the use of disposable water bottles, cups, plates and cutlery• Repair and paint local schools • Reforestation and protection of endangered marine turtles • Excursions for disabled or hospitalized children • CSR training for employees without internet access • School visits to ripening facilities • Recycling posters and videos to involve an entire facility team• Support of local charities

Programs like Live Chiquita! and the actions implemented by The Pulse have helped to inspire our employees to incorporate the three pillars of Live Chiquita! into their daily lives. Most importantly, we continue to improve the communities in which we live and work!

Please view our video to learn more.

thePulse

CEO Ed Lonergan and Chiquita employees participate in a day of volunteering on Earth Day 2013

http://www.chiquita.com/Chiquita/documents/CSR/Overview%20of%20VTO%20activities%20Chiquita%20rev%2024%2010%202012%20(3).pdf



COBAL’s Issues Registry: Handling Employee Concerns

Banana production depends on people far more than most other types of farming. Product quality, production cost and the productivity of the land depend to a high degree on the men and women working in cultivation, harvesting and packing the bananas. Every type of work needs to be carried out with precision and care.

In this setting, it is of great importance that the relationships among managers, supervisors and workers be fair, respectful and disciplined. Chiquita’s Core Values of ethical conduct play an important role in defining the behavior of all Chiquita employees, and set a standard for everyone in the company. Dealing fairly and promptly with grievances and complaints is an important aspect of good management-labor relations. While Chiquita’s Helpline provides an effective method for handling complaints and concerns, it is also necessary that employees and especially farm workers have a local channel to address their concerns promptly. The importance of this for employees and the entire organization is considerable: Neglected complaints can become a major cause of dissatisfaction and conflictive labor relations.

The labor relations department of COBAL, Chiquita’s Costa Rican organization, has developed a system to address worker complaints systematically and promptly: The Labor Relations Issues Registry and Resolution Tracking System.

COBAL’s operation is complex. It has more than 30 farms distributed in two provinces, of more than 6,000 hectares and close to 4,000 employees. Labor relations involve 24 permanent committees of employees, three trade unions and two collective bargaining agreements. At regular meetings, managers and worker representatives handle over 1,000 complaints and suggestions per year. Such complexity motivated the creation of the Labor Relations Issues Registry by Marco La Touche, COBAL’s labor relations manager, with the assistance of the division’s labor issues analyst and labor relations specialists. The operation of the system involves worker representatives, farm managers, labor relations specialists and the labor relations analyst.

The COBAL system, which has been in operation since 2006, records all issues, assigns a level of urgency to each one,

tracks the action taken to resolve the issue, and records the date of closure and the length of time for resolution. It has evolved into an instrument to measure the performance of the organization in handling worker complaints and concerns, and provides accurate information regarding the issues that concern employees.

The system has evolved substantially over the years and functions as follows:• Worker representatives receive complaint or suggestion from

workers • The issues are presented to the farm manager or the labor

relations specialist by worker representatives• At monthly meetings of worker representatives with the farm

manager and the labor relations specialist, issues which can be resolved immediately by the farm manager are identified. For issues that cannot be resolved immediately, the parties agree either on the solution, or on the time required by management to respond regarding the feasibility of a solution. This agreement is recorded in a statement signed by the meeting participants

At the monthly Modelo farm committee meeting in October 2012, participants (left to right) are Diana Segura, farm manager; Rigoberto Montiel, field worker representative; José Yilder, packing station worker representative; Adolfo Umaña, field worker representative; and Roberto González, labor relations specialist.


• The agreement is recorded in the tracking system, which permits data entry in multiple locations by authorized employees. For each issue, the system creates a unique identification number and records the person responsible for its resolution. Issues are classified by category, and are automatically assigned a target resolution date according to the type of issue. For example:

Issue Target Resolution Days

Minor Payroll Issue (<25,000 C.) 2

Other Payroll Issue (>25,000 C.) 7

Health and Safety 14

Worker Treatment 14

New Pedestrian Bridges 56

• At the following monthly meeting of worker representatives and farm management, they evaluate the status of previously recorded issues. An issue is closed when worker representatives confirm its resolution

• At a monthly meeting of farm managers and department heads, they address any issues delayed past the target date

• At quarterly meetings with the engineering department, participants discuss ways to expedite infrastructure improvements, since delays not only affect the well-being of employees, but also product quality, productivity and safety

• In a recent development, the tracking system records the actual issue resolution time and awards points on a 1 to 5 scale, depending on whether resolution occurred early, on target or late. It establishes the score of the person responsible, and also calculates the score of the entire organization. This score is a factor in the performance evaluation of managers.

In 2011, 303 meetings of COBAL management with worker representatives took place with 98 percent of the 1,053 recorded issues resolved by January 2012. In 2012, 993 worker concerns were registered and 98 percent were resolved by January 2013 (see 2012 Results).The benefits of this methodical approach are becoming clear:

• Since 2006 the interventions of the Ministry of Labor in resolving issues have decreased by over 70 percent (from 17 cases in 2006 to 4 in 2011)

• Managers and workers have become more skilled in dialogue and conflict resolution without the intervention or arbitration by the authorities

• Managers and supervisors are more committed to the prevention and resolution of conflicts

• The representatives of workers are more focused on dealing with priority issues, quite different from the tactical presentation of complaints of limited practical relevance, a problem of the past.

This innovative system is contributing to the prompt and effective resolution of workers’ complaints and concerns, and is setting a high standard for the management of labor relations.

Worker ComplaintsCobal, Costa Rica, 2011

Percentage

Infrastructures 77%

Payroll Errors 11%

Collective Agreements 6%

Health and Safety 5%

Management Conduct 1%

At a meeting of the labor relations committee at Sixaola farm in October 2012,the Sitrachirí union representatives are (on left from top) : Rene Garcia Miranda, gen-eral secretary; Luis Aguirre Gómez, assistant secretary; and Walter Capbell Gómez, conflict delegate. Participants for Chiquita are (on right from top) Roiner Moya Garcia, farm manager, and Eliseo Obando Pimentel, labor relations specialist.

Participants at the permanent committee meeting at Canfin Farm in December 2012are (center) Enrique Barbaro Bucardo, permanent committee, delegate of Sitagah union; (right) Martin Orozco Blandon, permanent committee, member of Sitagah union; and (left) Fernando Montero Retana, Chiquita labor relations specialist.

http://www.chiquita.com/Chiquita/documents/CSR/Completion_of_Worker_Issues.pdf


Collaboration with Unions: Focus on Women

Women make an important contribution in Chiquita’s banana farming business. Approximately 2,800 women, equivalent to 16 percent of total employees, are employed in production operations in Latin America. In administrative and supervisory positions, the percentage is higher at 21 percent.

In 2011, the company and trade unions formed the IUF/COLSIBA/Chiquita Women’s Committee, which seeks improvement for women working in the banana farms. Its main goal is to promote and reinforce a safe workplace, free of harassment, exclusion or inequality, and to improve the opportunities available to women by supporting their personal and professional development.

Where It StartedIn 2001, Chiquita became the first – and to date the only – company in the sector to sign an International Framework Agreement with global and regional trade union organizations. To underline its importance, Juan Somavía, Director General of the International Labour Organization (ILO), witnessed the signing of the IUF/ COLSIBA/Chiquita Agreement on Freedom of Association, Minimum Labor Standards and Employment in Latin America Banana Operations. He joined leaders of Chiquita; the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations (IUF); and the Latin American Coordinator of Banana and Agro-industrial Unions (COLSIBA).

Since then, the Joint Review Committee has met at least twice a year to oversee the application of this agreement and to handle any issues that negotiations with local trade unions have not resolved satisfactorily.

In April 2011, the women participating at the Joint Review Committee meeting identified the need and opportunity to work together constructively to tackle gender issues in banana farms, and formed the Women’s Committee. Its founding members are Sue Longley and Barbro Budin of the IUF; Iris Munguía, Adela Torres and Mireya Rodríguez of COLSIBA; Irene Sandoval, Sandra Campos and Marco La Touche of Chiquita.

At its first meeting in August 2011, the committee developed a report on the issues and actions to execute together, which they presented at the next Joint Review Committee Meeting. The Women’s Committee called for the following steps:

1) Strengthen Chiquita’s policies to further improve the working conditions of women at company farms: a) Include a clause on improved conditions for women in the IUF/COLSIBA/Chiquita Agreement b) Include the same clause in all collective bargaining agreements

2) Develop an awareness and information campaign for women to advance technical skills, women’s rights, health and safety, as well as to provide role models, beginning with a pilot program in Panama

3) Develop plans to increase employment opportunities for women

‘The IUF/COLSIBA/Chiquita Women’s Committee is a good example that others could follow. It is the outcome of a process of negotiations and joint work between unions and the company that has taken place over more than 10 years. To date, Chiquita is the only company in the sector to make such a commitment. “The challenge, as with other parts of the agreement, is to get things applied on the ground so moving ahead with a pilot project on women’s employment will be a crucial next step.’

- Sue Longley, International Officer for Agriculture and Plantations, IUF





Work of the Committee • A total of 10 meetings were held in 2011 and 2012• Committee members representing IUF, COLSIBA and Chiquita presented at two events in early 2012: the first World Meeting

of Women Banana Workers and the World Banana Forum (WBF) in Guayaquil, Ecuador. Participants applauded the effort and suggested expanding the model to other banana companies

• This innovative model is being included in the agenda of the WBF working group on labor rights and working conditions, to be supported and replicated

• Finalized the clause to add to the IUF/COLSIBA/Chiquita Framework Agreement• Discussed the implementation in 2013 of the pilot project in Panama focused on the improvement of conditions and

opportunities for women, with the participation of the company, trade unions, workers and local leaders.

Iris Munguía, coordinator of COLSIBA, said: “Other companies could get involved in similar initiatives because the issues are similar, which means that the solutions may be shared and could work for the industry.

“The most important achievement of the Committee has been to sit down at the dialogue table to express and share our points of view, including agreements and disagreements,” added Ms. Munguía.

“I think the Women’s Committee is a model that allows us to develop specific processes focused on women’s needs, so other companies will become interested and provide support,” said Adela Torres Valoy, general secretary of SINTRAINAGRO (Colombia) and gender issues coordinator at COLSIBA. “Our biggest achievement so far has been the completion of the clause for inclusion in the Framework Agreement and collective bargaining agreements. We have been able to work very well together.”

Gender Issues on Chiquita’s AgendaChiquita does not tolerate discrimination or any form of harassment, as is clearly stated in the Code of Conduct:

At Chiquita, we do not tolerate harassment or any conduct which creates a work environment that is considered intimidating, hostile or offensive. Likewise, unwelcome sexual flirtations, advances or propositions, graphic or verbal comments about an individual, or sexually explicit or offensive jokes, unnecessary touching, and any other unwelcome verbal or physical conduct of a sexual nature is prohibited.

IUF/COLSIBA/Chiquita Women’s Committee participants at the Banana Women’s Summit - Guayaquil, Ecuador, in February 2012.Photo by Barbora Mrázková, NaZemi, www.makefruitfair.org

www.makefruitfair.org


‘The dialogue initiated over 10 years ago by the IUF/COLSIBA/Chiquita Framework Agreement has matured and expanded. The parties are working together in a constructive spirit on new solutions. The IUF/COLSIBA/Chiquita Women’s Committee focusing on women’s employment issues in banana operations is an important example of a collaborative process that we expect will lead to more concrete progress on the ground. This process distinguishes Chiquita from the rest of its competitors in the banana industry.’

- Stephen Coats*, Executive Director USLEAP - Labor Education in the Americas Project*Stephen Coats, who passed away recently, dedicated his life to improving the working and living condition of farm laborers in Latin America. He will be remembered for his passionate but always thoughtful and balanced

advocacy of the rights of workers, which has unquestionably advanced the well-being of agricultural workers in the region.

Any harassment will not be tolerated, regardless of whether you are on company premises or are engaged in off-hours business-related functions, such as holiday parties or business travel. Harassment may be grounds for immediate dismissal, and it can subject both you and the company to severe legal penalties.

We should each help foster a harassment-free work environment by speaking out when a co-worker’s conduct makes us uncomfortable. We strictly prohibit retaliation against employees who report discrimination or harassment.

The role and rights of women emerged as a key area of focus when Chiquita adopted the SA8000 labor rights standard and in 2000 included it in the revised Code of Conduct. This focus has been maintained by the rigorous process of annual SA8000 audits, our internal training and education programs, our “zero tolerance” approach to any violations, our “Helpline” and other systems for complaints and grievances, as well as our work with unions at local and international levels.

Establishing the joint Women’s Committee has been a positive step for the banana industry. Its members from the IUF, COLSIBA and Chiquita are focused on making a better workplace environment and training available to women so they are ready to take advantage of opportunities in the years ahead.


Environment and Sustainability: Journey with Purpose

During the early 1990s, Chiquita began working with the Rainforest Alliance certification program, and embarked on the journey toward sustainable agriculture.

In 2009, our Corporate Responsibility Steering Committee initiated a company-wide Sustainability initiative with primary emphasis on greenhouse gas emissions and water, and secondary focus on materials use and biodiversity. Below we outline some of the sustainability work that has since blossomed in many locations.

In February 2012, we celebrated 20 years of collaboration with the Rainforest Alliance at a public event at the Fruit Logistica fair in Berlin, with the participation of Tensie Whelan, president of the Rainforest Alliance, and representatives of the partners in our biodiversity partnerships.

Since 2009, we have, with the expert assistance of MIT (Massachusetts Institute of Technology), developed the carbon footprint of Chiquita bananas from field to the retail shelf.

Our European colleagues have also moved ahead in the search for sustainability solutions. Our team in the Netherlands, for example, designed a new carbon-neutral banana ripening facility, which may well become a model for all such facilities.

We teamed up with WWF International to define the water footprints of our Fresh Express salads and Chiquita bananas, to identify risks related to this precious resource and to highlight areas requiring priority attention.

Our Fresh Express packaged salads are primarily grown in the western United States where fresh water is in short supply. In this report, we profile the work of our agronomists in developing the GAIN™ project to improve salad farming practices designed to minimize fertilizer and irrigation water use while maintaining product quality and field yields.

Our North American transportation department has collaborated with the U.S. government’s SmartWay® initiative for several years to reduce the environmental impact of our road transportation.

Ocean shipping contributes substantially to the carbon emissions of the banana lifecycle. Our logistics experts have made changes to our container fleet that are yielding major reductions in costs and emissions.

In Costa Rica, Mundimar, Chiquita’s fruit processing plant, has installed a biodigester as part of an ambitious “Waste to Energy” program. The biodigester provides two major benefits: ensuring that the plant’s water is compliant with Costa Rica’s strict environmental laws, and generating electricity from methane gas. This pioneering innovation was inaugurated in 2011 with the president of Costa Rica in attendance.

Mundimar also developed a passion fruit juice project with the participation of more than 100 small farmers in Costa Rica.

A lot of work, and much more to do!

Section at a Glance


Rainforest Alliance: 20 Years of Collaboration

In 2012 Chiquita reached a milestone: 20 years of collaboration with the Rainforest Alliance – probably one of the longest sustained relationships between a company and an NGO. In February 2012 at the international Fruit Logistica fair in Berlin, Chiquita joined with representatives of the Rainforest Alliance, as well as leading retailers MIGROS and REWE Group, in celebrating the 20th anniversary as well as the powerful idea of farmers collaborating with like-minded civil society organizations and companies to improve the social and environmental impact of their activities.

From a cautious test on two farms has grown a network of over 40,000 hectares (98,840 acres) of Rainforest Alliance Certified™ banana farms that includes not only Chiquita’s owned farms in Latin America, but also over 200 local growers who supply Chiquita. All of these certified farms implement the Sustainable Agriculture Network (SAN) Standard pioneered by the Rainforest Alliance, which includes comprehensive social and environmental requirements. Independent experts on behalf of the Rainforest Alliance and other members of the SAN audit farms on an annual basis for compliance with these standards.

1992 to 2012: Working with the Rainforest Alliance When the Rainforest Alliance first proposed that banana companies adopt its comprehensive social and environmental standards, this was a revolutionary idea. After evaluating the concept, Chiquita proceeded to qualify for Rainforest Alliance certification of all owned banana farms in Latin America, by improving production practices and facilities, and training thousands of farm workers, supervisors and managers. Subsequently, Chiquita encouraged numerous independent banana farms to become Rainforest Alliance Certified.

“Rainforest Alliance certification has not only transformed farms and production practices, but has also planted a seed of environmental and social responsibility in the minds of many thousands of men and women working in banana production. We are grateful to the Rainforest Alliance for its positive influence,” said Manuel Rodriguez, Chiquita’s corporate responsibility officer.

Tensie Whelan, president of the Rainforest Alliance, agrees: “The Rainforest Alliance launched its banana program in 1990 in response to the social and environmental abuses on banana plantations. Chiquita’s commitment to Rainforest Alliance certification over the past 20 years has helped transform the banana industry into a more sustainable model, improving working conditions while conserving natural resources.”

The Sustainable Agriculture Network (SAN)

SAN Principles• Management System• Wildlife Protection• Water Conservation• Working Conditions• Occupational Health• Community Relations• Integrated Crop Management• Soil Conservation• Integrated Waste Management

For the detailed principles visit:http://sanstandards.org/sitio/subsections/display/7

http://sanstandards.org/sitio/subsections/display/7


In his speech, Manuel Rodriguez pointed to the impact of Rainforest Alliance certification: “Of the many changes, there is one which stands out: the impact on the attitudes of workers and management, the result of regular training, but also of the experience of implementation.”

2003: MIGROS and Chiquita Launch the Nature and Community ProjectChiquita’s experience with Rainforest Alliance certification also opened the gates to productive partnerships with customers. In 2003, Chiquita and leading Swiss retailer MIGROS joined in a biodiversity partnership with the aim to protect and connect rainforest areas in Costa Rica. Soon after, the German government’s GTZ (now Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH – GIZ) became a partner. More recently, the British retailer IPL/ASDA also joined the partnership. Thomas Schmid of MIGROS states: “We are committed to work together for a common goal: Long-term conservation of the planet’s biodiversity for future generations.”

2008: REWE Group and Chiquita Join Forces in Panama A second biodiversity partnership was born in 2008, when German Retailer REWE and Chiquita agreed to work together in the Bocas province of Panama to conserve valuable wetlands and endangered species, in cooperation with the local community, farmers and government authorities. Soon after, REWE Group and Chiquita broadened their scope of activities and entered in a development partnership with the Costa Rican federation of banana growers

(CORBANA) and the GIZ working on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ). In this cooperation, the work of the project has been extended to the Sixaola region of Costa Rica focusing on activities to improve the living conditions of the communities in this border region of Panama and Costa Rica.

Dr. Josef Lüneburg of REWE Group remarks: “This project is a valuable component of our company-wide sustainability initiative. Dialogue and cooperation with local communities distinguish this partnership and are the keys to its success.”

A ‘Bottom-Up’ Approach to Biodiversity ConservationThese partnerships represent a “bottom-up” approach to biodiversity conservation, very different from the “top-down” approach that has sometimes consumed large resources with disappointing results. Community participation is especially important, as expressed in our motto:

“Conserving biodiversity, with the community and for the community”

In the latest development, Chiquita in 2011 together with other local and international companies and organizations initiated the foundation of Biodiversity Partnership Mesoamerica (BPM) in an effort to encourage and assist the multiplication of similar partnerships.


‘During the 20 years Chiquita has been working with the Rainforest Alliance, we have witnessed the transformation of tens of thousands of hectares of Rainforest Alliance certified banana and pineapple farms to improve everything from water quality to wildlife protection to worker housing. We look forward to building on that progress with Chiquita, helping producers, consumers, and the planet, over the next 20 years.’

- Tensie Whelan, president of the Rainforest Alliance

http://www.chiquita.com/Chiquita/documents/CSR/0807%20Fruit%20Logistica%20Event%20MR%20Speech%208a.pdf

http://ecoalianzas.org/website/images/BPM%20ING.pdf



Carbon Footprint of Bananas: Working with MIT

Chiquita teamed up with Dr. Edgar Blanco of MIT (Massachusetts Institute of Technology) and his team to explore the carbon footprint of bananas from farms in Latin America to retailers in North America and Europe.

The resulting study, published in 2011, not only has provided deep insight into the greenhouse gas emissions from every phase of banana production and transportation, but also has identified the greatest opportunities for reducing emissions.

BackgroundIn 2006, Chiquita’s North American transportation planning team partnered with the Center for Transportation and Logistics (CTL) at MIT. Working with the carbon-efficient supply chains research group led by Dr. Blanco and the management of Shaw’s supermarket, the team developed a carbon footprint analysis for bananas from the tropics to markets in North America. The study was completed in March 2009.

In May 2009, the Supply Chain Leaders in Action Association (SCLA) recognized Chiquita with the Circle of Excellence Award for its Corporate Responsibility work and its initiative to measure its carbon footprint from farm to retail with high-quality methodology.

Later in 2009, Chiquita became a founding member of the Global Leaders of Environmental Assessment and Performance (LEAP) consortium, in partnership with CTL and the Material Science Lab of MIT. Within the framework of this collaboration, Chiquita decided to expand the scope of the banana carbon footprint and incorporate Europe and Latin America as part of the analysis. In 2010, the analysis integrating the data from farms in Latin America to markets of North America and Europe was completed, including an external peer review of the methodology.

Previous carbon footprint measurements for bananas have differed widely as calculations have not been based on standardized methodology. The MIT–Chiquita study includes the full range of input materials and Chiquita’s shipping data, including the round-

trip records for banana ships. The team followed a process-based methodology that was consistent with International Standards Organization (ISO) standards for life cycle analysis and influenced by leading carbon-labeling programs, such as the PAS 2050 (British Standards Institute 2008) standard used by the Carbon Trust.

Banana Carbon Footprint(Farm-to-Retail Distribution Center)

North America EuropePer box (18.14 Kg / 40 lb) 17 Kg / 38 lb 23 Kg / 50 lb

Per Kg 1.0 Kg 1.3 Kg

Per banana* 160 g / 5.8 oz 220 g / 7.7 oz *105 bananas per box

58%

8%5%13%

16%

36%

13%7%

22%

22%

Refrigerants

Distribution Facilities

Production

Transportation

Packaging & Disposal

Refrigerants


Production

Transportation


58%

8%5%13%

16%

36%

13%7%

22%

22%

Refrigerants


Production

Transportation


Refrigerants


Production

Transportation


Europe

North America


Learning from the Carbon Footprint DataSince this information has become available, Chiquita has made considerable progress in reducing greenhouse gas emissions:• Renewal of the container fleet, with reductions of emissions caused by refrigerants, reduced energy use, and climate-

friendly equipment designs • The completion of a new “carbon-neutral” ripening facility, which provides a testing ground for climate-friendly technology • Progress in North America, as the Enivrontmental Protection Agency’s SmartWay® concept is applied to inland

transportation • 37 percent reduction of the carbon emissions per box of bananas arising from ocean transportation from Latin America to

Europe during the 2009-2012 period.

However, this is only the beginning of a long-term effort to reduce carbon emissions and energy use, with benefits for society and our company.

For more detail, see the Executive Summary of the MIT Carbon Footprint Study.

1 Kg bananas = 1.3 Kg CO2e in Europe 1.0 Kg in North America

• Bananas: 560 g – 1.3 Kg CO2e / Kg (various studies)

• Apples: 100 g – 1.5 Kg CO2e / Kg

• Asparagus: 500 g – 12 kg CO2e / Kg

• Sugar: 300 g – 600 g CO2e / Kg

1 banana = 225 g CO2e in Europe 160 g in North America

• Soft drink (sugared): 225 g per can, 360 g per glass bottle

• Smoothie: 209 g per 250 ml bottle

• A large cappuccino: 235 g

• A locally brewed pint of beer: 300 g

• Hybrid car: 90 g CO2e / Km

Carbon Footprint: How Do Bananas Compare?

0

20

40

60

80

100

2009 2010 2011 2012

100

8878

63

Carbon Emissions per Box of Bananas(Shipping Latin America to Europe, fuel use only)

Index 2009 = 100

http://www.chiquita.com/Chiquita/documents/CSR/0517_2013_Exec_Sum_MIT_CarbonFootprint_2011_MIT_FINAL.pdf


Sustainable Investment: New Ripening Center in the Netherlands

After many years of ripening Chiquita bananas in the Dutch town of Gorinchem, the company invested in one of the first (if not the first) carbon neutral banana ripening facilities in the world. Its pioneering design meets high standards of sustainability, product quality and employee well-being.

Benelux Director Franklin Ginus worked with Olaf Van Dooren, the company’s technologist, to develop the new facility for Chiquita Netherlands, which officially opened in November 2011. The building, which houses offices and ripening rooms, features several state-of-the-art technologies: • Patented reversed air technology• Patented Stop & Go technology • Natural refrigerants (ammonia and water) replace emissions-

intensive refrigerants• T5 (energy-efficient) illumination• Movement detectors for control of illumination

• Recovery of heat generated by bananas during ripening for use in heating the warehouses and offices

• Optimal use of daylight through roof tunnels in the top of the building

• An electric car and scooter for low emissions mobility• Toilets that use rainwater to flush.

In addition to these sustainability features, this center also provides customers with better service: The precision ripening process improves the taste and texture of the bananas; and monitors quality indicators such as sweetness, shelf life and taste. Customers can collect their orders at their convenience, using a security code to gain access to a temperature-controlled, ready-to-ship storage area.

Employees also benefit: As a result of many suggestions, there are significant improvements in the convenience, safety and comfort of the workplace for both office and production personnel.

The new ripening facility in Gorinchem (NL). Photo by Harry Noback

http://www.chiquita.com/Chiquita/documents/CSR/112312-Cooling-Installation-Gorinchem.jpg


The ripening center team developed its strategy to become carbon neutral on two fronts:• Reducing electricity use in the operations. The target is a 50 percent

reduction per unit compared with the previous facility• Offsetting the remaining emissions by buying carbon credits on an

annual basis from a reforestation project. An independent third party, Plan Vivo Foundation, validates and verifies the reforestation project.

The carbon footprint of the new ripening facility was calculated at 655 metric tons of carbon dioxide emissions per year. This is equivalent to the emissions of 130 cars during one year.

Eighty eight percent of this carbon footprint arises from the electricity to operate the facility, according to the Swiss NGO myclimate, which performed the emissions calculations. In 2012, the first full new year of operation, the electricity consumption per box of bananas was less than half the average for 2009-10 at the previous facility, and at 0.84 kWh per box far below the average for comparable facilities.

This new facility is serving as a testing ground: Chiquita will apply the lessons learned in Gorinchem across its network of ripening facilities.

‘This state-of-the-art investment delivers benefits for our customers, our employees and the environment. We strive to be the ‘greenest’ banana ripening establishment in Europe, to provide our customers with excellent service and products, and to ensure the well-being of our employees.’

-Franklin Ginus, director Benelux

0

30

60

90

120

150

2009 2010 2011 2012

First Full Year of

New Facility

100

125117

53

New Gorinchem Ripening FacilityElectricity Consumption per Box of Bananas

Index 2009 = 100

Skylights provide optimal use of daylight. Photo by Harry Noback

http://www.chiquita.com/Chiquita/documents/CSR/0515 120216_Factsheet_Nicaragua_final.pdf

http://www.planvivo.org

http://www.chiquita.com/Chiquita/documents/CSR/Feb 23 2011 Limay_Carbon_Project_Final_PlanVivoVal-_Report.pdf

http://www.myclimate.org


Water Risk and Footprint Assessment with WWF

In 2012, jointly with WWF International, Chiquita developed a detailed Water Risk and Footprint Assessment of its main agricultural operations and activities: Banana production in the Latin American Tropics and lettuce production in the western United States.

The study provided some important new insights and reinforced existing knowledge:• There is a growing consensus within governments, businesses

and the NGO community that freshwater scarcity and quality issues will dramatically increase in many parts of the world over the next 20 years

• According to WWF, protecting and restoring the world’s freshwater ecosystems to sustain the many social, cultural and economic benefits they provide may be one of the greatest challenges humanity faces in the 21st century

• Water consumption is rising due to population increases and improved living standards, whereas in many regions rainfall is becoming less reliable and freshwater sources such as glaciers and underground reserves are being depleted

• Farmers and urban populations are increasingly competing for the same freshwater sources

• Where water has been free or cheap in the past, this is changing:

º Energy cost of pumping is increasing º More water users are bidding for the same water º Water pricing will be promoted and enforced in many

places where it is currently a free resource º Government regulations of water use are becoming more

stringent or are being established and enforced• Across the globe, water shortages or pollution have led to

severe disruption of business operations and/or damaged the reputation and profitability of companies

• Increasingly, companies are finding that although good practices of water efficiency and quality are important, collaboration with other local stakeholders is essential to address local water issues.

BananasIn the case of bananas, the study concluded:• Chiquita’s longstanding partnership with the Rainforest

Alliance has helped the company to better understand water issues in banana farming

• The water footprint (water consumed per kilogram of bananas produced) ranges from 400 to 600 liters

• The crop in the field consumes over 90 percent (up to 99 percent) of this water footprint. In some regions with irregular or seasonal rainfall, irrigation is necessary; in others, rainfall provides adequate moisture

• The balance (process water footprint) is consumed in the packing station during the washing and packing process. The process water footprint can be reduced to less than two liters per kilogram by water recirculation and other measures

• Water is relatively abundant in the regions where Chiquita produces bananas, however increasing irregularity and intensity of rainfall and droughts caused by climate change have already led to an increased need for irrigation, and potential cost increases.

Chiquita has taken several measures to reduce its water footprint at the farms and packing stations, as well as measures to reduce pollutant loadings to receiving waters: • Monitoring and management of irrigation cycles• Recirculation of water in 14 packing stations• Lower depth of cleaning tanks in certain packing stations• Regular monitoring of water discharges and water quality

(as part of the Rainforest Alliance certification), including microbiological and pesticide residue analysis to ensure that discharge water is free of contamination

• Micro-irrigation in some locations• Heavy mulching, cover crops and buffer zones to reduce water

run-off.

http://www.chiquita.com/Chiquita/documents/CSR/0924_Chiquita_WF_Final_09_12_12.pdf


Challenges and opportunities• Cost savings in operations (efficiency optimization)• Mitigation of water-related operational risks• Overarching water strategy and water management policy• Sharing of best practice internally and with banana suppliers• Increased cooperation with other parties to deal with the water risk threat.

On water stewardship, there is already much activity in Latin America, with a well-established trend in water funds and community engagement. There are good opportunities for working collaboratively in the region with other water users, local government, NGOs and communities. In addition, there is strong interest by banks, regional bodies and financial institutions in increased private sector participation in addressing water issues.

Salad CropsIn the case of salad crops, the study concludes:• As widely published, water risks are significant in the dry climate regions of the United States where Chiquita sources salad

crops from independent growers (Chiquita does not own salad farming operations)• Water quantity risks are high. Costly disruptions of farming operations due to lack of water availability have already occurred

in some regions• Water quality risks are significant in some regions due to contamination of water by nutrients (fertilizer) applied to the crop,

such as nitrogen• Water scarcity will probably lead to new regulatory frameworks for water allocation and higher water prices• The water footprint of salad crops such as iceberg and romaine ranges from 30 to 100 liters per kilo produced, depending on

climate, growing season, crop yield and irrigation practices• The largest contributor to the water footprint of processed lettuce is the supply chain. Water consumed in the packing plants

typically represents less than two percent of the total water footprint• Research conducted by Chiquita’s specialists, in collaboration with University of California Cooperative Extension (UCCE),

has shown that irrigation water can be reduced by 15 percent and fertilizer applications by up to 50 percent using the techniques developed in the GAIN™ (Grower Ag-Vantage through Irrigation and Nutrient Management) project -- an opportunity to reduce production costs, save water and avoid nutrient contamination of ground and run-off water.

Challenges and opportunities• In California there is a need for greater business participation in basin management and allocation policy as well as

agricultural advisory services • To date the farm lobbies have been successful in advocating for sufficient water, but this dynamic – under increased

competition and strained resources – is likely to change.


GAIN™ Program: Improving Lettuce Farming

The Salinas Valley and the other dry regions where Chiquita sources lettuce and other salad products are facing critical water scarcity, and in some cases the contamination of underground and surface water resources by nutrient fertilizers.

Since 2007, Chiquita’s research specialists have been working in collaboration with the UCCE to apply the principles of precision agriculture to irrigation and fertilization practices. GAIN™ assists growers in managing water and nitrogen fertilizer use to increase sustainability of lettuce production.

The GAIN™ tool is designed to reduce the use of irrigation water and nitrogen while maintaining lettuce yield and quality. Tests in commercial-scale field trials in the Salinas and Imperial Valleys have shown that this system allows the reduction of irrigation water use by up to 15 percent and of nutrient fertilizer applications by up to 50 percent.

GAIN™ provides a sustainable web-based management program for lettuce growers: An opportunity to reduce production costs, save water, and avoid nutrient contamination of ground and run-off water.

For details, please view our slideshow and video to learn more about the GAIN™ program.

Lettuce farming in the Salinas Valley, California.

GAIN™• A sustainable web-based management program

for lettuce growers• Designed to reduce use of irrigation water and nitrogen while

maintaining lettuce yield and quality• Tested in commercial-scale field trials in the Salinas and

Imperial Valleys

• GAIN™ program allowed reduction of irrigation water use by up to 15%

• GAIN™ program allowed reduction of nutrient fertilizer applications by up to 50%

• Commercial testing and optimization of GAIN™ program in the Salinas Valley planned for 2013.

http://www.chiquita.com/Chiquita/documents/CSR/1213 Photo gallery 20121005 V2.pdf

http://vimeo.com/channels/chiquitacsr/42599997


North American Inland Logistics: Sustainable Results

In the United States, the environmental sustainability of inland transportation has become a subject of increasingly stringent regulations and voluntary government programs, especially the Environmental Protection Agency’s (EPA) SmartWay® Partnership. For example, all California ports now limit access solely to “clean air tractors.” Chiquita’s North American logistics department has been working for years to improve the sustainability of its banana and salad transportation businesses. The results were: • Reduced carbon dioxide emissions per case by 48 percent from

2007 to 2011 • Saved 420,000 gallons of diesel since 2010 by converting truck

transportation to intermodal (combined truck-rail)• SmartWay® carrier miles increased to 95 percent of total North

American network miles • Shore power diesel savings of over 12 million gallons from

2008 to 2011• 58,000 gallons of diesel saved since 2008 by replacing gen-

sets with more efficient models.• These combined fuel savings are equivalent to taking over

20,000 cars off the road for one year.

The carbon footprint impact of this effort is substantial: Every 100 gallons of diesel fuel conserved keep more than a ton of greenhouse gas from our environment.

A SmartWay® PartnerMuch of this work started when Chiquita/Fresh Express joined the EPA SmartWay® program in 2006 and became a SmartWay® Partner. The SmartWay® brand signifies a partnership among government, business and consumers to protect the environment, reduce fuel consumption and improve air quality for future generations.

All EPA SmartWay® transportation programs result in significant, measurable air quality and/or greenhouse gas improvements while maintaining or improving current levels of other emissions and/

or pollutants. SmartWay® programs include consumer support for buying the cleanest and most fuel efficient cars and trucks available; smart driving tips to improve miles per gallon and reduce pollution; alternative low-polluting fuel options; and SmartWay® partnerships for shippers, carriers and logistics providers.

SmartWay® explains its partnerships in this way:

“By joining SmartWay®, the carrier, shipper, or logistics provider agrees to set and strive for attainment of environmental and fuel efficiency goals within three years that improve the environment and their bottom line.”

SmartWay® carriers actively strive to reduce fuel consumption through the use of technologies and driving strategies such as:• Idle reduction • Improved aerodynamics • Improved freight logistics • Automatic tire-inflation systems • Wide-based (and single-wide) tires • Low-viscosity lubricants • Weight reduction • Hybrid vehicle technologies and alternative fuels • Driver training • Intermodal (road plus rail) transportation.

http://www.epa.gov/smartway/


As a SmartWay® Partner, Chiquita supports SmartWay® partnerships by influencing carriers to join. The results speak for themselves:

• Total SmartWay® carrier miles increased 15 percent since 2008 to 2011 to 95 percent of Chiquita’s total North American network miles, resulting in diesel savings estimated at more than 3.5 million gallons

• Carbon emissions per case carried were reduced by 48 percent from 2007 to 2011

• Gallons of diesel fuel per case went down by 40 percent (see chart below).

2007 2008 2009 2010 2011CO2 pounds/per case 2.23 2.07 1.23 1.23 1.15

Estimated gallons of diesel per case

0.11 0.10 0.06 0.07 0.07

Starting in June 2010, long-haul miles from the U.S. West Coast have been converted to intermodal (road + rail) transportation. It is estimated that 8 to 10 percent of the West Coast miles will consistently be intermodal, with annual diesel fuel savings of 250,000 – 300,000 gallons (see graph below).

Two Inland Carriers’ Sustainability ProgramsLeading trucking companies, working with Chiquita, are actively exploring new ways to improve the sustainability of their operations. For example, Ryder, Chiquita’s dedicated provider on the West Coast, and C.R. England, one of Chiquita’s largest over-the-road carriers, have developed comprehensive sustainability programs.

Ryder’s program includes:• Testing the use of compressed natural gas (CNG) tractors in

port haulage to prepare for increasing regulation for “clean air tractors” in California’s ports. These tractors have a “near zero emissions” rating from the California Air Resources Board

• Use of liquefied natural gas (LNG) tractors for heavy loads and mountainous routes tested successfully

• Evaluation of “Natural Gas Only” equipment. As the network of LNG and CNG fueling facilities improves, and “Natural Gas Only” replaces modified diesel engines, Ryder expects to expand the use of low-emission tractors

• Use of re-refined oil and retread tires are other valuable initiatives. Re-refined oil (recycled engine oil) requires less energy to manufacture than virgin stock from crude oil, resulting in the reduction of greenhouse gas emissions. Retread tires use 70 percent less energy than is required to manufacture new tires. Nearly 50 percent of the 600,000 tires used annually by Ryder are retreads

http://www.ryder.com/about-us/sustainability.aspx


Intermodal Truck

• Established programs for the reduction of electricity, water and gas usage, waste and effluent

• Since 2008, significant reductions in carbon emissions recorded through the Carbon Disclosure Project

• Annual environmental self-inspections required at each location and verified by Ryder Environmental Services team. Corrective action plans are required within 30 days of completing the audits.

C.R. England’s program includes:• Significant expansion of its intermodal network, which is three

times more fuel efficient than over-the-road transportation, including the development of a refrigerated container network to allow for transport of two stacked loads in the same train space

• Testing and using LNG and CNG tractors on a small scale with a goal to expand their use as they become more viable

• Recognizing that driver training is one of the most impactful ways to increase miles per gallon, C.R. England extensively trains drivers on eliminating out-of-route miles, limiting idle time, controlling speed, proper tire inflation, maintenance and progressive shifting techniques. Drivers are required to pass written and over-the-road tests before being issued fuel cards and being eligible for rewards for targeted miles per gallon achievements

• Extensive testing program to evaluate new green technologies on the market (i.e., tractor models, aerodynamic packages, tires, fuel additives, trailer/reefer technologies, reefer programming, etc.)

• Implementation of green technologies proven to be beneficial in testing

• Speed reduction to 62 mph (100 kilometers) with a significant increase in miles per gallon as a result

• Winner of numerous sustainability awards, including the SmartWay® Excellence Award, which is reserved for the top 1 percent of SmartWay® Partners, and Chiquita’s Green Carrier of the Year award in 2012.

There are great opportunities for improving the environmental performance of inland transportation. Leading companies are turning those opportunities into new realities.

Green Carrier AwardIn 2009, Chiquita started giving an annual Green Carrier Award. The carriers self-nominate and submit information on their sustainability efforts. In 2012, we used SmartWay® carbon dioxide, nitrogen oxide and particulate matter emissions data to determine the winner.

Winners of Chiquita’s Green Carrier Award2009 KLLM Transport

2010 Marten Transport2011 Brent Redmond Transportation

2012 C.R. England

http://www.crengland.com/our-company/corporate-responsibility

http://www.chiquita.com/Chiquita/documents/CSR/1018 Press Release Chiquita Green Award Oct 2012 C.R. England.pdf


More Sustainable Container Fleet

Since 2009, we have engaged in a four-year major refrigerated container renewal program to replace 65 percent of our fleet. Refrigerated containers are key components in the logistics of today’s banana supply chain. Chiquita operates more than 10,000 40-foot containers.

In recent years, there have been major improvements in the design and operating efficiency of reefer containers, with important environmental benefits:• Reduced electric power consumption • “Green” refrigerants • Insulation materials with reduced emissions. The impact of this fleet renewal is substantial:• Energy savings of up to 35 percent compared to old units, and

up to 58 percent when equipped with Quest® software that automatically shuts down the compressor of the reefer unit without affecting the quality of the stored fruit

• Reduced electricity use by 34 million kilowatt hours • Annual savings of $4 million in operating cost• Annual emissions reductions of 17,000 tons of CO2, or 185,000

tons of CO2, over the 12-year life of the new equipment, resulting from reduced electricity consumption. This is equivalent to taking over 3,000 cars off the road every year.

The company has acquired or leased more than 7,000 new container units to replace older models, for an investment of $135 million. By the end of 2011, we had replaced 60 percent

of the container fleet. Scheduled for completion in 2013, we plan to replace a further 895 older models with new low-power consumption containers.

Older container models were also retrofitted in 2008 to eliminate the use of Freon R12 chlorofluorocarbon refrigerants. Initially containers were adapted to use the refrigerant R409a, and as of 2012, all containers are operating with the refrigerant R134a, which has much superior environmental characteristics:

Refrigerant GWP* ODP**Freon R12 10,900 1

R409a 1,558 0.05R134a 1,430 0

* Global Warming Potential **Ozone Depleting Potential

Another significant change has been the adoption of the low-emissions blowing agents, Supotec® and cyclopentane, used to expand polyurethane in the insulation of new containers, replacing the R141b blowing agent. During the container’s lifetime, emissions reductions will amount to:

Blowing Agent GWP* ODP** Kg/

UnitCO2

Emissions (Kg)R141b 630 0.11 35.4 22,302

Supotec® 3 0 21 63* Global Warming Potential **Ozone Depleting Potential

Over 60 percent of Chiquita’s containers featured low-emissions blowing agents by the end of 2011. As a result, there will be a reduction of more than 90,000 tons of CO2 emissions over the lifetime of this equipment, equivalent to the emissions of 17,000 cars taken off the road for one year.

This multi-year program is delivering valuable savings and outstanding sustainability benefits.


Mundimar’s ‘Waste to Energy’ Biodigester

In August 2010, Mundimar, Chiquita’s Costa Rican fruit processing division, inaugurated a pioneering system which provides wastewater treatment and is a source of energy: The biodigester. President Laura Chinchilla Miranda of Costa Rica cut the ribbon to open the facility.

The biodigester, which was designed and built in Costa Rica, operates without any fuel or electricity – the work is done by gravity and natural bacterial processes. The wastewater that was formerly being pumped to the treatment (technically facultative) lagoons is diverted to the biodigester through underground piping. A strainer separates large solid particles, which are not suitable for the biodigester. Next the wastewater goes through a stainless steel filter to remove any remaining solids.

The residual organic matter consisting of fine suspended solid particles and dissolved matter enters the biodigester’s six interconnected chambers where anaerobic (low oxygen condition) micro-organisms convert the biomass to biogas in the absence of oxygen. The biogas, consisting of methane and carbon dioxide, accumulates and is stored in large rubber bags.

The biodigester provides valuable services:• The system yields 500-600 cubic meters (17,000-21,000

cubic feet) of biogas per day, enough to replace the liquefied petroleum gas (LPG) and electricity previously consumed in the cafeteria’s kitchen and administrative offices

• By reducing the organic load entering the lagoons, it ensures that wastewater leaving the facility easily meets effluent limits established by Costa Rican authorities

• Odors associated with facultative lagoons are significantly reduced because the biodigester is an enclosed system, preventing odors from reaching the atmosphere

• Effluent from the biodigester is rich in plant nutrients. Chiquita will educate local farmers on the use of digested wastewater to irrigate and fertilize their crops

• The biodigester now provides the processing plant with a well-designed wastewater treatment system suitable for further expansion of the facility.

http://www.chiquita.com/Chiquita/documents/CSR/Mundimar Biodigester Slideshow 2 w text.pdf


3 STEPS: Biogas from Wastewater 1. Liquefaction: The structure of organic matter present in the water is degraded by bacteria rendering it water soluble

2. Acid generation: Once the organic matter is dissolved in water, a series of chemical reactions occur, allowing an interaction between organic matter and bacteria. In this step, some chemical compounds from organic matter penetrate bacteria cells

3. Methane production: In anaerobic conditions (absence of oxygen), and through the microorganisms present in this step of the process, the organic compounds are transformed into smaller molecules such as carbon dioxide and water, which combine to produce methane gas. The whole anaerobic process takes 72 hours.

The biodigester also provides essential experience for the challenging next step in Mundimar’s “waste to energy” strategy: Using the facility’s solid organic waste to generate enough renewable energy to run the entire plant.

During the opening ceremony, President Chinchilla said:“…we see how it is possible to combine our knowledge with foreign capital and the best international universities to design a biodigester that is the sum of the efforts of EARTH University students, MIT and the drive with which Chiquita has tackled this project. “… I wish to sincerely congratulate Chiquita Brands for taking one step more in the right direction.”

If you wish to learn more:

Transcripts of President Chinchilla’s speech are available in English and SpanishSlideshows: Inauguration; Biodigester & water treatment lagoons


http://www.chiquita.com/Chiquita/documents/CSR/Speech by Costa Rican President_Biodigester Inauguration_English.pdf

http://www.chiquita.com/Chiquita/documents/CSR/Inauguration speech President Chinchilla 28agosto2010_Spanish.pdf

http://www.chiquita.com/Chiquita/documents/CSR/Mundimar Biodigester Slideshow 1 w text.pdf

http://www.chiquita.com/Chiquita/documents/CSR/Mundimar%20Biodigester%20Slideshow%202%20w%20text.pdf



The objective of the project was to create a new sourcing model in collaboration with small growers from neighboring communities that guaranteed a high quality, stable supply of passion fruit, with full transparency and good social and environmental practices.

Passion Fruit Project: Working with Small Farmers

Chiquita is best known as the banana brand, but here is a story of one of our smaller divisions implementing innovative sustainability projects for the benefit of its customers and the local community.

Chiquita Fruit Solutions (CFS), our business-to-business division, sells processed tropical fruits in many forms, including juices, concentrates and individually quick frozen (IQF) to food and beverage companies. Bananas and pineapples are the principal raw materials processed at CFS’s fruit-processing plants in Costa Rica and Ecuador.

In recent years, the demand for passion fruit juice as an ingredient for food and beverage products has grown substantially. Ecuador is the source of most passion fruit for processing, where typically middlemen buy the fruit from more than 10,000 small growers. The income of farmers suffers due to reliance on this “middleman” structure.

For the fruit processing facilities, it is often impossible to establish the origin of the fruit, or to obtain any information regarding the social and environmental conditions at the farms. High price volatility is another consequence of this situation.

In 2010, CFS piloted a new passion fruit supply program at our Mundimar facility in Costa Rica. The objective of the project was to create a new sourcing model in collaboration with small growers

from neighboring communities that guaranteed a high quality, stable supply of passion fruit, with full transparency and good social and environmental practices.

129 Farmers Join the ProgramCFS invited small farmers from the regions of Guácimo and Turrialba to become part of this project; and 129 independent growers, accounting for 115 hectares (285 acres) of land, signed up. With the support of the regional Ministry of Agriculture and our research specialists, CFS provided agronomic assistance reinforcing the producers’ knowledge through training, coaching in the field and

Passion Fruit Flower

individual support on all phases of cultivation and harvest. While the program principally focused on agricultural subjects such as soil preparation, fertilization, pest and disease control, and climate, it also has helped to create a community of producers who can collaborate and exchange information regarding their challenges and solutions. CFS donated the passion fruit seedlings required for the first crop cycle.

More importantly, the company provided long-term purchase commitments that guarantee a stable income for the growers. CFS established clear procedures of sale and payment: During harvest, the company sends a truck each week to collect the fruit, which is weighed in the presence of the grower. The corresponding invoice is created on the spot, and farmers receive payment by electronic transfer one week later. Most growers did not have bank accounts when they joined the project, but a copy of the company contract enabled each of them to open an account.

Annie Lopez of the Ministry of Agriculture and Livestock for the Turrialba region said the program provides another good option for farmers. “It offers them the entire agro-alimentary chain all the way to marketing the product,” said Ms. Lopez.

Farmers who joined the passion fruit project continue to produce a mix of crops, including coconut, yams, corn, pawpaw, cassava and other activities such as raising cattle. Passion fruit comprises only a small part – approximately 25 percent – of each farm. Participant farmers have commented that this new high-value crop has improved their income and working conditions. Their income from passion fruit compares favorably with traditional crops and is more stable as a result of the Chiquita contracts. For example, at

an average yield of 20 tons per hectare, the income per hectare of passion fruit is $8,000 compared with $2,750 for one ton of coffee (the typical coffee yield per hectare).

Growers Earn Rainforest Alliance CertificationCFS also introduced these new passion fruit growers to the sustainable agriculture program of the Rainforest Alliance, and assisted them in adopting the comprehensive standard for certification. In October 2011, the group became one of the first small passion fruit grower groups to earn Rainforest Alliance certification.The Rainforest Alliance Certified standard is composed of 99 social and environmental criteria, and independent experts annually audit certified farms. Chiquita has been applying the Rainforest Alliance Certified standard for more than 20 years on banana farms; all company-owned banana farms and hundreds of supplier farms are Rainforest Alliance Certified.

In 2012, Chiquita was in the process of reworking its certification for the passion fruit group with additional farmers from the community so the group is not currently certified. It will likely regain the certification in the near future with a much larger portion of the community involved.

“At the Rainforest Alliance, we are pleased with the progress these passion fruit producers have made in adopting sustainable agricultural practices, which enabled them to obtain Rainforest Alliance certification. The commitment of the growers to continuous improvement of their farming practices and to the Rainforest Alliance Certified sustainable agriculture standard is evident,” said Ana Lucía Corrales, Certification Agriculture Expert, Rainforest Alliance.

‘We have changed a lot since we began with the Rainforest Alliance certification program. My children and I learned about the importance of looking after nature, the trees and the wild animals that come to our farm, and to stop burning trash.

‘The passion fruit project has been good for us. Before we did not have a regular income from our culantro herb sales, and what is worse we live in an area where it is very difficult to find work. Now thanks to the passion fruit project we know that they come by every Monday to collect our product and that payment goes into our bank account.

‘We raised our first passion fruit crop as a family, working together for one year. Because we had a good result, my sons will this year cultivate half a hectare (approximately one acre) separately, as their own project.’

- Yolanda Leitón Soto, passion fruit farmer in Turrialba, Costa Rica

44 CHIQUITA BRANDS INTERNATIONAL, INC. CORPORATE SOCIAL RESPONSIBILIT Y REPORT• 2009-2012


Program Attracts More FarmersPassion fruit cultivation also provides additional employment in the area, especially since high yields are only achieved when the flowers are pollinated by hand.

Farmer Walter Palma said: “Before we planted cilantro herbs but it was not a reliable crop. Now with passion fruit, we have stability of production and price, and we have the peace of mind that all our crop is sold.”

In the process, Chiquita has supported two women-owned nurseries that cultivate the passion fruit seedlings, making CFS’s program a good new income opportunity for 12 local women. CFS can now offer a total supply chain solution, from farm to the marketing of the product. The benefits are clear: • Higher yields than expected of excellent quality fruit• A stable supply of approximately 1,500 metric tons (1,650 tons) annually of single-strength passion fruit juice• Full transparency regarding the source • Sustainable farming practices, adhering to the standards required for Rainforest Alliance certification.

What about the future? While the project is still young, cultivating exotic fruits for processing has the potential to provide many small farmers with a stable source of income, and CFS’s customers with high quality, sustainably produced products.

Please view our slideshow and video to learn more about the Passion Fruit Project program.

http://www.chiquita.com/Chiquita/documents/CSR/Mundimar%20Passion%20fruit%20Slideshow%20w%20text.pdf



Food Safety: Fresh Express’ Intense Focus

Fresh Express, Chiquita’s wholly owned subsidiary, produces packaged salads for the North American market. This section provides information about aspects of Fresh Express’ food safety programs, from field to retail shelf. Food safety is of paramount importance in the packaged salads business, and we strive to be the best of the best in this arena.

Fresh Express has developed and implemented extremely stringent food safety controls in an effort to provide protection for consumers. This program covers everything from the seeds planted at the farm to the maintenance and care provided to the product on the shelf. We focus relentlessly on continuous improvement and routinely update our food safety requirements as a result of advances in science and the industry. This intense focus helps us differentiate our products and the Fresh Express brand in the area of food safety.

In 2008, Chiquita opened the James R. Lugg Global Research & Innovation Center in Salinas, California, affirming the company’s commitment to continuous improvement in the food safety and quality of packaged salads and to the state’s Salinas Valley, and honoring James Lugg, the pioneering innovator of the development of packaged salads.

The International Association for Food Protection awarded Fresh Express its 2010 Black Pearl Award of Corporate Excellence in Food Safety and Quality. Food safety experts have compared this award to winning the Super Bowl of American football.

Following the tragic fresh spinach E. coli 0157:H7 outbreak in 26 U.S. states in 2006, Fresh Express funded a $2 million research initiative to shed light on the causes and prevention of the little-understood causal pathogen, even though our products were not implicated in the outbreak. A panel of independent experts selected nine projects from a field of 65 proposals for funding. At the Fresh Produce Safety Research Conference in September 2008, the nine leading studies were presented. (See Key Findings from Fresh Express Research Initiatives)

Fresh Express has adopted the Food Safety System Certification 22000 (FSSC 22000) as the foundation for integrating and effectively managing food safety. Certification to this standard has been achieved and maintained in all Fresh Express salad manufacturing facilities.

The revised 7-Steps of Prevention™ Food Safety Program is a prevention-based seed-to-shelf food safety initiative that implements rigorous measures designed to maintain the safety of our fresh salad products.

Section at a Glance

http://www.chiquita.com/Chiquita/documents/CSR/FEX%20Food%20Safety%20Research%20Initiative%20News%20Announcement.pdf



James Lugg Center Seeks Continuous Improvement

The Chiquita James R. Lugg Global Research & Innovation Center in Salinas, California, serves as the apex for the company’s packaged salad strategic innovation initiatives and investments. Founded in 2008 and named in honor of James R. Lugg, former Fresh Express executive vice president for science and quality and a recognized pioneer of modified atmosphere technologies for fresh produce, the center comprises the company’s trial farms, pilot manufacturing plant, consumer test kitchen, fully equipped microbiology and quality laboratories, and a retail merchandising unit where value-added products are created and tested.

The Chiquita and Fresh Express brands have long been recognized for their commitment to research and are credited with a lengthy list of “firsts” for the fresh produce industry. Packaged salad innovations include the fresh-cut salad category, now a multibillion dollar industry; the early development of an advanced, computerized traceability system; the advancement of sophisticated seed research and development initiatives; the creation of the first comprehensive raw product quality and food safety program; and the use of the first pilot plant in product innovation.

Today, the Lugg Center is the thriving hub for the company’s ongoing salads and healthy snacks research and development activities; the evaluation and implementation of advanced technologies, systems and processes; and the identification and expansion of leading-edge knowledge and expertise of all aspects of fresh produce – from seed development, growing and harvesting all the way through to product development, packaging and quality assurance.

James R. Lugg

http://www.chiquita.com/Chiquita/documents/CSR/Chiquita Dedicates James R Lugg Global Research Innovation Center_Press Release.pdf


Fresh Express Wins Black Pearl Global Award

The International Association for Food Protection (IAFP) awarded Fresh Express, a wholly owned subsidiary of Chiquita Brands, its 2010 Black Pearl Award of Corporate Excellence in Food Safety and Quality. Food safety experts have compared this award to winning the Super Bowl or the World Cup.

“For Fresh Express, winning the Black Pearl Award was a milestone in our continuous research and innovation work toward even higher standards of effectiveness,” said Mike Burness, Chiquita’s then global vice president of food safety and quality.

From its inception as a fresh foods company over 80 years ago, Fresh Express has held excellence in food protection as its highest priority. The company developed and currently employs the unique and comprehensive Fresh Express 7-Steps of Prevention™ Food Safety Program, a synchronized set of proprietary food safety practices that apply across the entire supply chain from seed development, growing and harvesting to manufacturing and delivery to customers throughout the United States and Canada.

With the invention of its special Keep Crisp® Bag in the early 1980s, Fresh Express pioneered the retail packaged salad category and was the first to make packaged salads available to U.S. grocery stores. More than 20 million servings of Fresh Express salads, spinach and greens are provided to consumers every week.

“Each year, IAFP honors a single company with our most prestigious award, the Black Pearl, in recognition of that company’s singular efforts in advancing food safety and quality,” said IAFP Executive Director David Tharp. “We recognize Fresh Express for its adherence to the highest standards of excellence in food protection, for its innovative leadership in prevention-based food safety practices, for its exceptional educational activities and for fostering a culture that is dedicated to continually furthering the principles and goals of outstanding food safety.”

Among the criteria that Fresh Express met in winning the Black Pearl Award was evidence of:

• Contributions to public health principles and food safety• Products and services demonstrating a commitment to food safety• Facilities designed with food safety and sanitation as a primary concern• Adherence to food safety regulations• Community and consumer programming and education to promote food safety• Promotion of ethical and fair business practices.

Previous recipients of the Black Pearl have included 3M, Ecolab, DuPont, Walt Disney World, Kraft Foods, Darden, Albertson’s and H-E-B.

Fresh Express Wins Black Pearl Global Award

FSC 22000 Certificate for the Salinas, California, facility.


Key Findings from Fresh Express Research Initiatives

Following the 2006 tragic fresh spinach E. coli 0157:H7 outbreak in 26 U.S. states, Fresh Express, a wholly owned subsidiary of Chiquita, funded a $2 million research initiative to shed light on the causes and prevention of the little-understood Escherichia coli O157:H7 pathogen in leafy greens. Fresh Express products had not been implicated in the outbreak.

A panel of independent experts selected nine projects from a field of 65 proposals, and Fresh Express awarded approximately $250,000 to each study.

At the Fresh Produce Safety Research Conference in September 2008, the nine best studies were presented, covering the following five areas of research:

• The potential for the internalization of E. coli O157:H7 into lettuce tissue

• Mitigation strategies and technologies for E. coli O157:H7• Environmental sources and vectors for contamination of E. coli

O157:H7

• Ability of E. coli O157:H7 to multiply in the presence of normal background flora

• Ability of E. coli O157:H7 and other enteric pathogens to survive composting processes.

Nine Best Studies1) Subsurface contamination and internalization of

Escherichia coli O157:H7 in pre-harvest lettuce Principal Investigator: Dr. Michael P. Doyle, Center for Food Safety, University of Georgia

2) A novel approach to investigate internalization of Escherichia coli O157:H7 in lettuce and spinach Principal Investigator: Manan Sharma, Agricultural Research Service. USDA Co-investigator: Michael Donnenberg, University of Maryland–Baltimore

3) Interaction of Escherichia coli O157:H7 with fresh leafy green produce Principal Investigator: Jorge A. Girón, University of Arizona. Contributors: Juan Xicohténcatl, Ethel Sánchez and John M. Leong, University of Arizona

4) Sanitization of leafy vegetables by integrating gaseous ozone treatment into produce processes Principal Investigator: Ahmed Yousef, Ohio State University. Co-investigator: Sudhir Sastry, Ohio State University

5) Quantifying the risk of transfer and internalization of Escherichia coli O157:H7 during processing of leafy greens Principal Investigator: Elliot Ryser, Michigan State University. Co-Investigators: Bradley Marks and Ewen Todd, Michigan State University

Dr Michael Osterholm, PhD, MPH and scientific advisory panel chair offers comment



6) Movement of Escherichia coli O157:H7 in spinach and dissemination to leafy greens by insects Principal Investigator: Jacqueline Fletcher, Oklahoma State University. Co-investigators: Astri Wayadande, Justin Talley and Stanley Gilliland, Oklahoma State University

7) Factors that influence the ability of Escherichia coli O157:H7 to multiply on lettuce and leafy greens Principal Investigator: Linda Harris, University of California, Davis. Co-investigators: Mysore Sudarshana and Trevor Suslow, University of California, Davis

8) Fate of Escherichia coli O157:H7 on fresh and fresh-cut iceberg lettuce and spinach in the presence of normal background microflora Principal Investigator: Mark Harrison, University of Georgia. Co-investigators: William Hurst and William Kerr, University of Georgia

9) Determining the environmental factors contributing to the extended survival or re-growth of food-borne pathogens in composting systems Principal Investigator: Xiuping Jiang, Clemson University. Co-investigators: Geoff Zehnder and Feng Luo, Clemson University

For access to study abstracts, please visit: http://www.ingentaconnect.com/content/iafp/jfp/2009/00000072/00000007/art00022

http://www.ingentaconnect.com/content/iafp/jfp/2009/00000072/00000007/art00022


Fresh Express Adopts Integrated FSSC 22000

Fresh Express, Chiquita’s wholly owned subsidiary, has adopted the Food Safety System Certification 22000 (FSSC 22000) as the foundation for integrating and effectively managing food safety. All Fresh Express salad manufacturing facilities have achieved and maintained certification to this standard since 2010.

FSSC 22000 is based on the principles of the widely recognized ISO 22000 standard and is a stringent global scheme for food safety, risk assessment and overall food safety systems. With a solid foundation built on the systemic preventative approach to food safety known as HACCP, pre-requisite programs and Good Manufacturing Practices, FSSC 22000 also includes key management elements that provide a comprehensive systems approach for integrating food safety into the business.

Finally, FSSC 22000 also incorporates a process to facilitate continuous improvement, with explicit protocols built into the management system, thereby driving better food safety practices over time.

FSC 22000 Certificate for the Salinas, California facility

http://www.fssc22000.com/en/


7-Steps of Prevention™ Program for Fresh Salad Products

The company’s comprehensive food safety program has continued to evolve since 2009. Our revised 7-Steps of Prevention™ Food Safety Program is a prevention-based seed-to-shelf food safety initiative that implements rigorous measures designed to maintain the safety of our fresh salad products.

Led by a team of top scientific, safety and agricultural experts, this comprehensive approach to food safety covers every phase of the supply chain, from before planting the first seed through growing, harvesting, cooling, manufacturing and transportation – all to assure that products are the freshest and safest available. The company has invested to re-validate the effectiveness of the integrated HACCP system across our facilities.

The 7 steps are defined as follows:Step1: IntegratedGAPs™ – For Preventive Raw Product Food Safety • Exceeds the scope of the FDA’s good agriculture practices

(GAP) guidelines and industry standards• Includes over 15 distinct sets of practices, covering all critical

areas of agricultural operations from pre-planting inspections to water quality, field sanitation and worker hygiene, pre-harvest and harvesting inspections, to name a few

• Emphasizes working collaboratively with growers and harvesters in order to ensure the highest levels of compliance and cooperation in food safety practices and improvement.

Step 2: MultiPointCertification™ – For Supply Chain Assessment and Management • Includes specific standards and definitions to certify key

elements across our raw product supply chain.Implementation involves more than 2,000 individual field inspections using our food safety specialists, and thousands of product safety audits each year.

Step 3: IntegratedHACCP™ – For Manufacturing Excellence • Includes advanced HACCP requirements and Good

Manufacturing Practices to exceed FDA regulations and guidelines, and to ensure that our food protection programs are rigorous and carried out consistently

• Incorporates hundreds of customized standard operating procedures

• Each of our facilities also has a dedicated Quality Assurance and Food Safety Laboratory

• Our teams conduct over 200,000 in-plant tests each year • Our food safety system is validated through in-house audits as

well as third-party.

Step 4: KnowledgeShare™ – For Educational and Training Excellence• We believe in and support extensive and continuous education

throughout the supply chain• Every element is supported by training and educational

modules; all teams receive training annually with supplemental training as needed; advanced food safety training seminars, summits and forums are held for specialized functional areas

• Training is customized by level, from plant or field workers to managers and supervisors. Guest speakers in various aspects of food safety bring different perspectives and engage team members in constantly seeking new solutions and ideas.

STEPSOFPREVENTION

TM


Step 5: SMARTrack™ – For Integrated Traceability • Our robust traceability system facilitates trace back and

trace forward seamlessly and efficiently.

Step 6: VeriCheck™ – A Multi-Tiered, Cross-Functional Food Security System • Our system is compliant with all FDA food security

recommendations and is led by specially-trained teams in each facility and at upper management

• Annual risk assessments form the basis for a process of continuous improvement

• Education and training of employees are pivotal to a program of vigilance and ongoing scrutiny

• Stringent security requirements are established for each facility as well as at key junctures within our transportation and shipping program

• We also employ an advanced Truck Seal program and computerized system to ensure safety and security point to point and throughout the route.

Step 7: RealTimeResponse™ – Advanced Risk Management System• A specially-selected and trained risk management and

rapid response team is on call 24/7/365 to manage potential issues and incidents

• A customized Early Warning and Alert System surfaces concerns at the earliest possible time in order to contain, reduce, and resolve challenges.


Collaborations and Partnerships

As our CSR work has gathered pace, we have found many opportunities to join with like-minded organizations, seeking opportunities to learn from others, to share our experience and to work in partnership with some of our best customers. We provide a list of our memberships and participations.

In 2009, Chiquita joined two organizations that support collaboration on sustainability and other global issues: • The World Banana Forum brings together many stakeholders concerned with banana production and trade • The Global Social Compliance Programme aims to develop a shared approach to social and environmental standards across

industries and countries.

As banana farmers in Central America, we have the opportunity to contribute to the conservation of the exceptional biodiversity of the region. We have assembled what we call “biodiversity partnerships,” including governments, customers and local organizations. Our Nogal Nature and Community Project in Costa Rica, with partners International Procurement and Logistics Limited (IPL) and the well-known Swiss retailer MIGROS, is marking its 10th year in 2013. More recently, we joined with the German retailer REWE Group, as well as CORBANA and GIZ in the Changuinola-Sixaola public-private partnership on cross-border activities in Panama and Costa Rica.

In 2011, the German retailer REWE Group awarded its PRO PLANET label to Chiquita, making it the first non-REWE Group brand to receive the label.

The lessons are clear: Collaboration gives energy and strengthens our purpose.

Section at a Glance

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http://www.gscpnet.com/


Our Memberships and Participations

CSR Organizations• Social Accountability International (SAI), Advisory Board, SA8000 certifications• Global Social Compliance Program (GSCP), Executive Board• World Banana Forum (WBF) Steering Committee, Sustainability Working Group • Business for Social Responsibility (BSR), Member

Compliance• Ethics and Compliance Officers Association (ECOA), Member• Manufacturers’ Alliance for Productivity and Innovation (MAPI)• Ethics and Compliance Council, Member• Compliance and Ethics Leadership Council (CELC), Member

Distribution and Logistics• Distribution Business Management Association, Member• Circle of Excellence Award 2009

Data Privacy• International Association of Privacy Professionals (IAPP), Member

Trade Union Organizations• International Union of Food Workers (IUF) & COLSIBA, International Framework Agreement and Women’s Committee

Environmental• Biodiversity Partnership Mesoamerica (BPM), Founding Member• WWF International Water Footprint Study, Memorandum of Understanding• WWF USA Mesoamerican Reef Project, Memorandum of Understanding • MIT Carbon Footprint, Completed project• MIT/LEAP Environmental Impact Consortium, Founding member• Rainforest Alliance Certified™ farms, 20 years experience• SmartWay (U.S. Environmental Protection Agency), Member

Biodiversity Partnerships• Nogal Project (Costa Rica), Partners: MIGROS and IPL• San San Project (Panama/Costa Rica), Partners: GIZ, REWE Group, CORBANA

Please view our video to learn more about our partnerships.



Biodiversity Partnerships: ‘With and for the Community’

Natural habitats around the world are being destroyed at an increasing rate, yet we depend for our survival on healthy oceans, lakes and rivers, forests, soils and the very air itself. The conservation of biodiversity has become one of the requirement of any sustainability program, and is truly a key to the well-being of future generations.

As farmers in Central America, a region of exceptional biodiversity, we can contribute to the conservation of that biodiversity. The protection of biodiversity is a key component of the Rainforest Alliance certification standard. All of Chiquita’s owned banana farms and a high percentage of our banana and pineapple supplier farms are Rainforest Alliance Certified™ and are subject to annual audits by independent experts on behalf of the member organizations of the Sustainable Agriculture Network (SAN) – an effort which began 20 years ago.

Chiquita’s experience with Rainforest Alliance certification opened the doors to productive partnerships with customers beyond the boundaries of our farms. In 2004, we agreed with the leading Swiss retailer MIGROS to found a “biodiversity partnership” based on Chiquita’s Nogal farm in Costa Rica, which is now in its tenth year. In 2008, another nature and community project in Panama followed in collaboration with the German retailer REWE Group, the association of Costa Rica banana farmers CORBANA, and the German government’s GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH), working on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ).

These partnerships share an important principle: The central role of the local community. Without the understanding and support of local people, we will not achieve sustained improvements. This is our motto:

“Conserving biodiversity, with the community and for the community”

2004: MIGROS and Chiquita Launch the Nature and Community ProjectChiquita and MIGROS joined in a biodiversity partnership to protect and connect rainforest areas in Costa Rica. Soon after, the German government’s GTZ (now GIZ) became a partner. More recently, the British retailer IPL/ASDA also joined the partnership.

Thomas Schmid of MIGROS states: “We are committed to work together for a common goal: Long-term conservation of the planet’s biodiversity for future generations.”

The project’s primary focus is to “protect and connect” rainforests of the Sarapiquí region. Biological corridors developed by the project enable endangered forest-dwelling species to migrate and to maintain their genetic viability. We have established these biological corridors with over 60 native tree species, which grow quickly in the hot and humid tropical conditions – many are over 10 meters (32 feet, 9 inches) tall. It did not take long before we

Environmental Workshop at Nogal Nature and Community Project


observed wildlife moving through the corridors, such as deer, anteaters, howler and capuchin monkeys, and most significantly since 2011, troops of the endangered spider monkey. Our study of butterflies has pointed to the remarkable biodiversity in this network of forests: During 31 months of monitoring, 100 species of fruit-eating butterflies (family Nymphalidae) were recorded, including one species that had not been reported on the Caribbean side of Costa Rica for over 100 years.

The project has also developed environmental education programs for local communities, which over 15,000 schoolchildren and adults have attended. In 2012, we took expert advice and revised our environmental education curriculum to meet best practice standards and extended our work to 25 primary schools.

2008: REWE Group and Chiquita Join Forces in Panama The second biodiversity partnership is with the REWE Group in the Bocas Del Toro province of Panama where we aim to conserve valuable wetlands and endangered species in cooperation with the local community, farmers and government authorities. In 2009, the partnership expanded to include CORBANA and GIZ. Our project work now extends across the border into the Sixaola region of Costa Rica where we principally focus on improving the living conditions and environmental awareness of local communities. In Panama, the primary aim of this partnership is to contribute to the conservation of the mangrove forests, lagoons and beaches of the protected San San Pond Sak reserve, located close to banana farms. We are, for example, reforesting former cattle pastures with native tree species adapted to the wetland conditions, in collaboration with the local community organization AAMVECONA (Asociación de Amigos y Vecinos de la Costa y la Naturaleza). On the nearby Caribbean beaches, the sea turtle protection project supported by our partnership has safely released 20,000 leatherback turtle hatchlings to the sea. And here also environmental education for adults and children is planting the seeds of environmental awareness and responsibility.

Dr. Josef Lüneburg of REWE Group remarks: “This project is a valuable component of our company-wide sustainability initiative. Dialogue and cooperation with local communities distinguish this partnership and are the keys to its success.”

‘Bottom-up’ Approach to Biodiversity ConservationThese partnerships represent a “bottom-up” approach to biodiversity conservation involving local farmers, communities and organizations, which is very different from costly and sometimes ineffective “top-down” approach of government intervention. Governments and local authorities have warmly welcomed and supported the partnerships’ efforts.

In 2011, Chiquita together with other companies and environmental organizations, founded Biodiversity Partnership Mesoamerica (BPM), in an effort to encourage and assist with the development of similar partnerships in Central America. BPM was legally constituted in October 2012. If successful, BPM will contribute to a flowering of similar initiatives.

For more details, check out:Nogal ‘Nature & Community Project’ ( Costa Rica) Annual Report 2011Nogal slide show Please view our video to learn more.

San San ‘Nature & Community Project’ (Panama) Annual Report 2011San San slide showSan San environmental education by radio:• “Sea Turtle” (Spanish language)• “Manatee” (Ngäbe indigenous language) Please view our video to learn more.

http://www.aamvecona.com



http://www.chiquita.com/Chiquita/documents/CSR/Nogal 2011 eng.pdf

http://www.chiquita.com/Chiquita/documents/CSR/Nogal 2011 eng.pdf

http://www.chiquita.com/Chiquita/documents/CSR/0117 Nogal slideshow for 2012 CR Report.pdf



http://www.chiquita.com/Chiquita/documents/CSR/0506 San San 2011 final eng.pdf

http://www.chiquita.com/Chiquita/documents/CSR/0506 San San 2011 final eng.pdf

http://www.chiquita.com/Chiquita/documents/CSR/0117 San San slideshow for 2012 CR Report.pdf

http://www.chiquita.com/Chiquita/documents/CSR/TORTUGA EN ESPA%C3%91OL.mp3





World Banana Forum and Global Social Compliance Programme

In 2009, Chiquita joined two organizations that support collaboration on sustainability and other global issues. The World Banana Forum was launched to bring together a broad base of stakeholders concerned with banana production and trade. Chiquita also joined the Global Social Compliance Programme, which aims to develop a shared approach to social and environmental standards in the global supply chain.

The World Banana Forum (WBF) promotes the worldwide adoption of sustainable practices for banana production and trade and has created a meeting place for all stakeholders in the production and trade of bananas. The Food and Agriculture Organization (FAO) of the United Nations provides the Secretariat, which supports and facilitates WBF activities.

The World Banana Forum plays a valuable role enabling many interested parties - banana producers, retailers, governments, research institutions and civil society organizations - to come together in a spirit of collaboration, not just to engage in dialogue, but primarily with the aim to bring about improvements in the social and environmental impact of the sector that individual organizations cannot achieve on their own.

Chiquita plays an active role in World Banana Forum, serving on:

• WBF Steering Committee• Coordinating team of the Working Group on Sustainable

Banana Production and Trade• Earlier, the ad hoc preparatory committee prior to the first

WBF conference.

The World Banana Forum is still a new multi-stakeholder platform, with great potential.

The Global Social Compliance Programme (GSCP) was founded by leading retailers in 2006 to harmonize existing efforts and develop a shared and sustainable approach for continuous improvement of social and environmental conditions in global supply chains.

GSCP’s membership includes leading buying companies (retailers, brands, brokers, etc.) in many sectors, and has a strong Advisory Board composed of experts from civil society organizations, including representatives of trade unions, human rights, non-governmental organizations and academia. The GSCP is therefore uniquely positioned to exercise positive influence in several ways:

• Defining and promoting best social and environmental practice through its reference tools and models

• Promoting the harmonization of social and environmental standards

• Encouraging convergence and collaboration of social and environmental schemes

• Ensuring that civil society organizations play an influential role in shaping the GSCP’s work

• Improving social and environmental conditions in global supply chains.

Chiquita serves as a member of the GSCP’s Executive Board, and has played an active role in the GSCP’s Expert Working Groups.

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Our point of view: The GSCP’s efforts to develop common standards and approaches are critically important for global companies and communities. We need to arrive at a common definition of good social and environmental practice in global supply chains. Much well-intentioned effort has gone into separate initiatives, which if brought together, will become a major factor in supporting human rights and environmental responsibility across the globe.

Chiquita highly values the World Banana Forum and the Global Social Compliance Programme and is pleased to contribute to their work. Our years of experience with Rainforest Alliance and SA8000 certifications, our role on the advisory board of Social Accountability International and our International Framework Agreement with global and regional trade union bodies enable us to contribute to the development of these still-young organizations.


Chiquita Receives REWE Group’s PRO PLANET Label

In 2011, the German retailer REWE Group awarded its PRO PLANET label to Chiquita, making it the first non-REWE Group brand to receive the label.

This distinction is the result of Chiquita’s many years of dedication to sustaining Rainforest Alliance certification on its own farms and on producers’ farms in Panama, Costa Rica and Colombia. Chiquita’s SA8000 certifications and agreements with global and local trade unions also played a role in this recognition, as did the company’s initiative to join with REWE Group, GIZ (German government’s development corporation) and CORBANA (federation of Costa Rican banana producers) in the Changuinola-Sixaola (San-San) Biodiversity Partnership.

The PRO PLANET label is an important component of the REWE Group’s company-wide sustainability strategy. To establish an authentic and transparent process,

REWE Group included various stakeholders in the development of PRO PLANET. For the implementation of PRO PLANET projects, REWE Group collaborates with external experts. An independent expert advisory board accompanies the entire process:

• Bernward Geier, chairman of the PRO PLANET advisory board and sustainability expert• Georg Abel, Die Verbraucher Initiative e.V., German consumer organization• Dr. Klaus Kastenhofer, sustainability expert and medical scientist• Dr. Oliver Müller, Caritas International, social NGO• Jörg-Andreas Krüger, Naturschutzbund Deutschland e.V., German environmental NGO

“This award is not only a recognition of the good work of the selected suppliers but also an invitation to continue to improve their social and environmental performance,” said Guido Siebenmorgen, head of Strategic Procurement Food 2 of REWE Group. “We are delighted that Chiquita has received this label after thorough consideration by our expert advisory board.”

Chiquita’s Brian Kocher, at the time President of Europe and Middle East (Chief Operating Officer since 2012), commented: “This award marks a special moment in our long business relationship with the REWE Group. This distinction challenges us to work hard to continue improving the social and environmental conditions wherever Chiquita bananas are farmed and shipped.”

About REWE GroupThe cooperative REWE Group is one of the leading trade and tourism groups in Germany and Europe. In 2012, the company generated a total external turnover in excess of 50 billion euros. The REWE Group, founded in 1927, operates around 15,500 stores with 327,000 employees in 13 European countries. In 2012, around 226,000 employees generated turnover totaling 36 billion euros in over 11,000 stores in Germany. The sales lines include REWE, REWE CENTER, REWE CITY, toom and BILLA supermarkets and consumer stores, the discounter PENNY, the toom DIY stores and B1 Discount DIY stores as well as ProMarkt consumer electronic stores. Travel and Tourism includes the tour operators ITS, Jahn Reisen and Tjaereborg plus Dertour, Meier’s Weltreisen and ADAC Reisen and the business travel division FCm Travel Solutions and about 2,100 travel agencies (e.g. Atlas Reisen, DER Reisebüro, DERPART).


Cross-Reference to Global Reporting Initiative Indicators

Following is a cross-reference to the indicators recommended by the Global Reporting Initiative Sustainability Reporting Guidelines, G3.1, and the pages where they can be found in this 2009-2012 Corporate Social Responsibility Report or the 2012 Annual Report to Shareholders.

CSR Page = 2009-2012 Corporate Social Responsibility Report page numberAR Page = 2012 Annual Report page number

General Standard DisclosuresGRI Idicator Topic CSR Page AR Page

1.1 Statements from CEO and Board Chairwoman

3, 5

1.2 Key Impacts, Risks and Oppor-tunities

2.1 Name of Organization2.2 Primary Brands, Products2.3 Operational Structure 2.4 Location of Headquarters2.5 Company Operations2.6 Ownership and Legal Form2.7 Markets Served2.8 Scale of Organization2.9 Significant Changes2.10 Awards Received3.1, 3.2, 3.3, 3.4 Reporting Information 3.12 GRI Content Index4.1 Governance Structure4.2 Chairwoman Information4.6 Conflicts of Interest4.84.94.114.124.13

Following is a cross-reference to the indicators recommended by the Global Reporting Initiative Sustainability Reporting Guidelines, G3.1, and the pages where they can be found in this 2009-2012 Corporate Social Responsibility Report or the 2012 Annual Report to Shareholders.

CSR Page = 2009-2012 Corporate Social Responsibility Report page numberAR Page = 2012 Annual Report page number

General Standard DisclosuresGRI Indicator Topic CSR Page AR Page

1.1 Statements from CEO and Board Chairwoman 3, 51.2 Key Impacts, Risks and Opportunities 3, 52.1 Name of Organization Cover 2.2 Primary Brands, Products 2, 3 2.3 Operational Structure 2, 3 2.4 Location of Headquarters 63 2.5 Company Operations 7, 27 62 2.6 Ownership and Legal Form 2 2.7 Markets Served 6-10 2.8 Scale of Organization 14 4-10, 23-272.9 Significant Changes 2, 32 2, 32.10 Awards Received 48, 60 3.1, 3.2, 3.3, 3.4 Reporting Information 33.12 GRI Content Index 61 4.1 Governance Structure 11, 154.2 Chairwoman Information 5 4.6 Conflicts of Interest 15 4.8 Codes of Conduct and Principles 2, 6, 18, 20 4.9 Highest Governance Oversight 5, 154.11 Precautionary Approach Addressed 15, 46 4.12 External Charters and Initiatives 11 4.13 Membership in Associations 54, 55, 56 4.14, 4.16 Stakeholder Group Engagement 7, 15, 22, 24, 28 5 Disclosures on Management Approach and Performance Indicators 11, 13, 27, 46 2-21


Performance IndicatorsGRI Indicator Topic CSR Page AR Page EC 1 Direct Economic Value Generated 2-21 EC 3 Defined Benefit Plan Obligations 50-55EC 8 Infrastructure Investments 56-57EN 5 Conservation, Efficiency Improvements 31, 32, 40, 41 EN 7 Reducing Ind. Energy Consumption 37, 40EN12 Description of Biodiversity Impact 56, 58EN 13 Habitats Protected or Restored 29, 56 EN 14 Managing Impacts on Biodiversity 56 EN 18 GHG Emission Reductions 30, 32, 37, 40, 41EN 19 Ozone Depleting Substances 40EN 21 Water Discharge by Quality, Destination 41EN 26 Mitigating Environmental Impacts 30-45EN 29 Transportation of Environment Impacts 37, 40 LA 4 Collective Bargaining Agreements 22, 24 LA 7 Total Number of Injury and Fatalities 18 LA 11 Employee Programs 17, 18, 20 50-55HR 1 Human Rights Contract Screening 24HR 5 Risks in Supply Chain 22, 24 HR 10 Operations with Human Rights Reviews 15SO 1 Local Community Engagement 7, 20, 43 SO 2, SO 3, SO 4 Corruption Risks and Policies 15, 17SO 8 Non-Compliance Fines / Sanctions 62-66 PR 9 Significant Fines 62-66

Our Corporate Social Responsibility Report is not a full disclosure of all of the company’s social, economic, and environmental projects that took place during the reporting period. Please refer to other sources, such as our website and our 10K SEC filing form available to the public, for more information. Specifically, GRI indicators EC 6 (pages 2, 4-5), EC 9 (pages 8-14), and EN 11 (pages 2, 4-5) can be found in the 10K form, which can be accessed here: http://investors.chiquita.com/phoenix.zhtml?c=119836&p=irol-sec.

http://investors.chiquita.com/phoenix.zhtml?c=119836&p=irol-sec


CSR Report 2009-2012:Our Renewed Purpose

A sincere Thank You to our many colleagues and external experts who contributed to or are quoted in this report:

CEO letterEd Lonergan

Board statementKerrii B. Anderson

InterviewManuel Rodriguez

EmployeesThelma Rockhold

Occupational Health and SafetyPhil Paustian, Milton A. Vicenteno Jr., Leonardo A. Murillo Salem

IUF AgreementIrene Sandoval

Grievance SystemMarco La Touche

ComplianceAllyson Bouldon

CSR TrainingAllyson Bouldon, Nolan Quiros

Carbon FootprintAna Lucía Alonzo, Dr. Edgar E Blanco & Dr. Tony Craig (MIT)

Water FootprintArnett Young, Jochem Verberne (WWF International)

GAIN Arnett A Young, Dr. Susanne Klose

TransportationSteve D Lohman

Passion Fruit ProjectLuis Alonso Valverde T., Humberto Wedderburn M., Ana Lucía Alonzo

BiodigesterHumberto Wedderburn M., Ana Lucía Alonzo

CO2-Neutral RipeningFranklin Ginus, Olaf Van Dooren

ContainersJuan Carlos Hernandez Mena

Food SafetyMike Burness, Lori Tansey, Barbara Hines (Stratagent)

Graphic DesignSamantha Carpenter

Information TechnologyDavid Wilson Brown

LegalJames E Thompson

Internal Audit Antoine Elam, Daniel Acosta

Independent Statements:Laura Chinchilla (President of Costa Rica)Tensie Whelan (Rainforest Alliance)Sue Longley (International Union of Food Workers, IUF)Stephen Coats† (Labor Education in the Americas Project, US LEAP)Iris Munguía (Colsiba)Adela Torres (Colsiba, Sintrainagro)Annie Lopez (Costa Rican ministry of agriculture)Ana Lucía Corrales( Rainforest Alliance)Walter Palma (farmer, Costa Rica)Yolanda Leitón Soto (farmer, Costa Rica)Thomas Schmid (MIGROS)Dr. Josef Lüneburg( REWE)

Editorial teamGeorge Jaksch, Irene Sandoval Arce, Ed Loyd, Magnes Welsh (adviser), Eric Martinez

We welcome readers’ comments and suggestions, please send them to: [email protected] South Caldwell St., Charlotte, NC 28205 • 980-636-5000

mailto:csr%40chiquita.com?subject=2012%20CSR%20Report

Documents

Chiquita Publishes Corporate Social Responsibility Report