The responsible food chain sector Give sense to investments and - PowerPoint PPT Presentation

FOR PROFESSIONAL INVESTORS The responsible food chain sector Give sense to investments and benefit from potential growth opportunity Alexandre Jeanblanc - June 2016

15/06/2016 I 2 Critical water and soil pollutions  3 million people intoxicated by pesticides worldwide according to the WHO**  300 000 km² of arable land (the size of Italy) disappear each year due to over-exploitation, 25% of soil globally are very excessive use of chemicals fertilizers, irrigation malpractice and loss of vegetation***  More than 100,000 km2 of forests disappear each year globally degraded*  In Europe, 50% of wetlands are endangered**** In Europe, 20% of surface  Health authorities are increasingly worried about the potential impact that endocrine disrupting substances might have on organic human functioning (decreasing man fertility water is at serious risk from or more frequent cancers)***** pollution**** 76 different toxic products found in human blood due to food *http://www.fao.org/resources/infographics/infographics-details/fr/c/266125/ ; **http://www.who.int/mediacentre/factsheets/fs313/fr/ ; *** http://www.unesco.org/mab/doc/ekocd/chapter11.htm; http://www.planetoscope.com/sols/1175-disparition- de-surfaces-agricoles-dans-le-monde.html ; ****http://www.statistiques.developpement-durable.gouv.fr/indicateurs-indices/f/1831/1902/pesticides-eaux-douces.html ; *****An endocrine disruptor is an exogenous substance or mixture that alters function(s) of the endocrine system and consequently causes adverse health effects in an intact organism or its progeny or (sub)populations.; by WWF in 47 people(including 39 members of European Parliament) By WWF in 47 people(including 39 members of European Parliament

15/06/2016 I 3 Accelerating climate change  Rising temperatures are accelerating glacial melt. The disappearance of this freshwater source could have catastrophic effects on ecosystems and water supplies for many people (particularly for Pakistanese, Indian and Chinese populations)  Because of the acidification of oceans, limestone aquatic organisms biodiversity will decrease by 70% and other aquatic organisms by 30% in the 100 years to come  In 2030, half the global population will live in water stressed areas Source: United Nations Environnent Programme (UNEP), 2009 ; CNRS, M. Gattuso, Océanographe

15/06/2016 I 4 The food value chain from production to distribution Basic Foods & Growers & Inputs Technology & Logistics Food Safety Ingredients Sustainable Packaging Value Added Foods Distributors

15/06/2016 I 5 Some companies in the food value chain act against that backdrop Reducing food waste Reducing CO² emissions Recycling packages Favoring sustainable Promoting healthy and Increasing food safety growing practices natural food

15/06/2016 I 6 Tomra, leader in recycling Sustainable Packaging , Norway  An innovative company specialised in recycling, mining and food sorting.  Created the first reverse vending machine. Recycling packages Reducing CO² emissions Innovation  Through its reverse vending  Put in place the ISO 14001 EMS  “Sentinel II’s high resolution sensors and machine, captures 35 bn used standards simple user interface allow the customer to set beverage containers annually; the sorter to reject a broad range of defects  Issues annually an Environmental equivalent to 20 mn tons of GHG* such as green, sunburn, mold, anthracnose Report (waste, water and energy). emissions avoided (circa 2 mn car rot or worm damage while also removing  Has committed to reducing its GHG CO² emissions per year). foreign materials such as cotton stalks, corn emissions by 25% in two years. cobs, plastic, glass, metal, wood bone and animal matter.  An enhanced, patented, high-speed rejection system efficiently removes defects and foreign material, operating at higher speeds than previous models. ” * GHG : Greenhouse Gaz

15/06/2016 I 7 Eurofins, leader in food safety testing Food Safety , France  With over 17,000 staff in around 200 laboratories across 36 countries, Eurofins Scientific is the world leader in food testing. It is also number one in the world in the field of environmental laboratory services  It comprises testing of water, air, soil, waste and other products to assess their quality and impact on health and the environment. It has extensive experience in testing for all organic and inorganic pollutants, including pesticides, chemicals, heavy metals, drugs, GMOs*. Increasing food safety Recycling Reducing food waste  Tests for toxins in food. Works to prevent  Operations have a recycling focus.  Microbiological quality : Internal use of non-allowed chemicals development of a method to seek  Developed an Environmental bacteria in plastic corks and bottles  Environmental tests on water and soil to Management System (EMS) analyse pollution. More than 70 molecules  Control of microbial growth on surfaces are sought in the samples *GMOs: Genetically Modified Organisms

15/06/2016 I 8 Whole Foods Market, leader in organic and natural food retailing Distributors , US  Supermarket chain specialising in organic, natural and responsibly sourced food.  Stores in the US, Canada and the UK  Has a policy of rewarding its farmer partners equitably.  Favors practices protecting pollinators Promoting sustainable Promoting healthy and Food safety growing practices natural food  Bans endocrine-active materials in  Focuses on foods with nutritional  Responsibly grown rating system : products and packagings, such as and ecologic value. Controlling farm measures to protect human bisphenol A or phthalates health and environment. Protecting air, soil  Bans hydrogenated fats or and water (rivers, lakes, and oceans) artificial colors, flavors,  Bans irradiated food preservatives or sweeteners  Water conservation and protection : Using a drip irrigation system to save water

15/06/2016 I 9 Sustainability exclusion rules Exclusion of activities – “WHAT” Exclusion of companies with poor or controversial processes – “HOW” Full exclusion  Land management and local communities  Producers and developers of GMOs  Bio-diversity and land use  Food & Agri commodities traders  Labour management and health & safety  Producers of first generation biofuels  Supply chain management (responsible sourcing)  Producers of inorganic fertilisers  Animal welfare  Producers of palm oil  Product safety and marketing practices  Chemical safety management Limited at 5% of revenues  Toxic Emissions and waste  Production of tobacco  Water management  Production of alcoholic beverages  Carbon Emissions  Production of aspartame and artificial sweeteners  Production of Bisphenol A (BPA)  Production of artificial food colourings or dyes Limited at 20% of revenues  Highly processed and low nutrition foods (“junk food”)  Carbonated soft drinks and sodas Companies with major controversies within these areas will be excluded from the Sustainable Universe, following the Precautionary Principle In the full Sustainability Framework all these activities and risks are described and the policies and processes required are detailed.

15/06/2016 I 10 Environmental, Social and Governance issues Environment Social Governance  Specific risk factors : e.g. Hazardous waste,  Specific risk factors : Heath & Safety, lack of  Board structure and effectiveness : tenures, toxics in production training, employment rights experience, independence  Environmental issues: Fines for pollutions, spills  Social issues : OSHA incident database  Shareholders rights : Voting rights, anti-takeover defences  Risk/issues addressed : Relevant policies,  Risks/issues addressed : policies, systems, management systems standards  Ownership structure: Dominant , controversial shareholders  Are process well disclosed : Policies, CRS-  Process disclosure : Policies, H&S statistics,  Management remuneration: alignment to long- report, EMS disclosed systems term performance  Are processes well integrated : E-committees,  Process integration : HSE committee/officer  Behaviour, reputation, internal controls: anti- HSE officer  Opportunities captured : H&S training, industry trust, litigation, related transactions  Are opportunities captured : Resource leadership  Proxy voting practices: following local best effectiveness, industry leadership practice  Accounting practices: aggressive or conservative 10

15/06/2016 I 11 Expected superior outperformance Source: BNP Paribas Asset Management. Data as of 31 May 2016. Investors should ensure that they are fully informed about the sub-funds, classes and sub-classes of shares that are authorised to be marketed in their country of residence and the constraints applicable in each of these countries. The investments in the above funds are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance or achievement is not indicative of current or future performance. 11

15/06/2016 I 12 SMaRT Food, to solve environmental issues and promote high quality food Response to increasing Respect of strict ESG concerns about Long-term value creation criteria environmental issues