Our CSM/Purac Sustainability JourneyDr. Nicola Kimm, Corporate Director Sustainability

ELC SUSTAINABILITY FORUM

May 29, 2013

Overview

2

1 Sustainability Approach and Journey

2

Sustainable Solutions3

Communications and Engagement4

Initiatives over our Value Chain

Our Aim

"As an increasingly important issue for society,

sustainability is also a unique opportunity for CSM

to deliver value to its stakeholders.

Doing business in a sustainable way is embedded in

our long term strategy."

Gerard Hoetmer, CEODriving

sustainability

We aim to provide for a healthier, more sustainable world through the

smarter use of natural resources

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Creating value and Managing risk

Create Value

to position Future CSM as the partner of choice

Manage Risk

to strengthen trust and credibility

� Create competitive advantage through sustainable value

propositions

� Create reputational benefit with stakeholders, such as

investors, employees, and community

� Use sustainability to develop a recognizable brand

� Minimize risks by improving transparency and compliance

both internally and with partners

� Avoid risks by embedding sustainability in business

decisions

� Understand risks by engaging with stakeholders as early

warning system

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CSM Sustainability Framework

Initiatives

Value Chain

Reduce,

Reuse,

Recycle

Sustainable

Sourcing

New

Solutions

Our Values:

Passion, Partnership, Performance

Sustainable

Value

Creation

Compass

Governance

CSM

Sustainability Framework

Strategy Innovation Sourcing Operations Customer Society

Issue

Materiality

PEOPLE PLANET PROFIT

Transparency,

Engagement

Creating value for our

customers through our

bio-based solutions

Nature’s

processes and renewable

resources

Improve the quality of

life, for people today and

generations to come

Our Code Our Standards

Issues for CSM and our Stakeholders

Impact on CSM

Sta

keh

old

er'

s c

on

cern

Business Ethics •

Recycling •

Occupational health & safety •

Water •

Sustainable sourcing •

Food waste •

Food availability •

Packaging •

Healthy food •Climate change •

Sustainable products •

� Climate change & renewable resources: provide low CO2 solutions for our customers

� Food availability & waste: raw materials do not interfere with food value chain, prevent waste

� Sustainable Sourcing: ensure our agricultural raw materials are produced sustainably

Energy •

Renewable resources •

Waste •

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Sustainability Advancement

■ Sustainable sourcing

(Sedex, Bonsucro)

■ Operations: reduction

projects for energy, water,

waste, packaging

■ Life Cycle Assessment2. Initiatives

■ Internal communications:

employee engagement

■ External communications:

integrated annual report,

KPI reporting, website,

marketing support

■ Partnership & dialogue with

Suppliers (enzymes, sugar)

Business partners (BPF),

NGOs (BE-Basic, Greenpeace,

TEEB)

■ External Recognition: NL Benchmark, WWF

palm oil Scorecard

■ Materiality analysis

■ Strategic framework

■ Value chain approach

1. Strategy

3. Spreading4. Engaging

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Overview

8

1 Sustainability Approach and Journey

2

Sustainable Solutions3

Communications and Engagement4

Initiatives over our Value Chain

Sustainability spans our Value Chain

� Sustainable

Sourcing

Program

focusing on our

most important

raw materials,

such as sugar

We drive sustainability along our value chain to reduce our own

impact and that of our suppliers and customers.

� Food: freshness,

safety, health,

preservation

� Biobased / low

CO2 solutions

� PLA bioplastics

� Biobased, low

CO2 production

processes

� Reduction of

energy, water,

packaging, waste

� Sedex

� New process

based on

alternative

substrates

� New process

creating less

waste

Sourcing OperationsSustainable

SolutionsInnovation

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Sustainable Sourcing

Our supplier code and engagement with suppliers are an

integral part of our sustainability program

Sedex is a not for profit

membership organisation

dedicated to driving

improvements in ethical and

responsible business

practices in global supply

chains.

Bonsucro is non-profit initiative

dedicated to reducing the

environmental and social impacts of

sugar cane production. It aims to @

measures these impacts @ certify that

sustainable practices are being adhered

to.

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Lactic acid: Innovation for next generation

feedstocks

2nd generation:

Cellulosic materials

1st generation:

Sugar

Partnership with industry & research institutes

3rd generation?

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Overview

12

1 Sustainability Approach and Journey

2

Sustainable Solutions3

Communications and Engagement4

Initiatives over our Value Chain

Sustainability messages for our Customers

Natural

solutions for

safe food

products

Nutritional

ingredients

for healthy

products

Bio-based

chemicals

from natural

sources

Sustainability

over the value

chain

Reducing

carbon

footprint

Monomers for

bio-based

plastics

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Reduced food

waste

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Less waste

bread

Less sugar, flour, heat,

electricity and

packaging

Less heat and

electricity

Less

fertiliser and

traction

Milling Distribution

Animal feed

Wheat production Baking

Less

drivingSale from

primary

store

Animal production Landfill

Consumed

bread

We reduce bread waste over the value chain

Bioplastics (Poly Lactic Acid) Life cycle

1. Sustainably grown

feedstocks

2. 2nd Gen feedstocks

3. Low Carbon footprint

LA production process4. Recycle enablers

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Bioplastics (Poly Lactic Acid) Carbon foot print

Source: www.lca.plasticseurope.org and

Int. Journal Life Cycle Assessment, 08.2010

Emissions from production of common polymers

kg CO2 eq per kg of polymer – cradle to gate

PLA bioplastics offers significantly reduced footprint versus

traditional oil based plastics

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Overview

17

1 Sustainability Approach and Journey

2

Sustainable Solutions3

Communications and Engagement4

Initiatives over our Value Chain

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Communications & Engagement

Social Responsibility

Top employer awards

Employee

safety a top

priority

Local support

for students

and children

Community

support through

tree planting and

flood relief

Social and

environmental

responsibility at

our sites

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