Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Economic Prosperity
• Social Welfare

Environmental Achievements

• Reduced fuel consumption by 442,000 liters per year, saving 1,409 MT of carbon emissions (in Argentina peanut operations)
• Installed a system to collect, de-water and reuse spent coffee grounds as fuel, reducing waste and CO2 emissions (in Vietnam soluble coffee plant)
• Reduced water abstraction costs by 25% during the rainy season in India sugar factory (Phase 1)
• Completed the Roundtable on Sustainable Palm Oil (RSPO) New Planting Procedure in Gabon

Social Achievements

• Increased Olam Livelihood Charter farmer numbers by 230% to 212,377 farmers across 17 initiatives in 9 countries
• Provided US$63.8 million in interest-free loans to farmers
• Invested US$8.5 million in staffing for 637 outreach workers
• Built three health centers, a medical laboratory, a maternity unit, two primary schools, and eight literacy centers in Africa
• Reached over 185,000 people with HIV/AIDS awareness campaigns

Governance Achievements

• Completed the CR&S Report using the Global Reporting Initiative (GRI) framework
• Implemented a QEHS improvement program across manufacturing facilities
• Increased the number of BRC-accredited plants to 20

Climate Goals & Targets

Environmental Challenges

• Educating and aligning a global team of over 18,000 people across 65 countries on sustainability
• Formalizing processes to ensure every manager understands their role as CR&S stewards
• Addressing community issues raised in coffee plantation in Laos due to insufficient national land survey
• Water security in areas of water scarcity
• Declining yields and quality of agricultural products from rural communities
• Human capital crisis in rural areas due to younger generation leaving for urban areas

Mitigation Strategies

• Running training programs and workshops to align employees with the Growing Responsibly strategy
• Introducing a ‘Sustainability in Action Award’
• Addressing issues with local communities in Laos
• Establishing a sustainable water management framework
• Investing in farmer training and support through the Olam Livelihood Charter
• Implementing the Olam Livelihood Charter to re-engage younger generation in rural communities

Supply Chain Management

Responsible Procurement

• Supplier Code with requirements on operational practices, labour standards, business ethics, product quality, food safety, traceability, community relations, and environment

Climate-Related Risks & Opportunities

Physical Risks

• Floods, droughts, and fire

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI) G3.1

Certifications: BRC (20 plants), Forest Stewardship Council (FSC™), Roundtable on Sustainable Palm Oil (RSPO)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 13: Climate Action
• Goal 15: Life on Land

Livelihood initiatives aim to improve productivity and income at the small-scale farmer level; investments in food security; sustainable water management framework; efforts to reduce energy consumption and increase renewable energy; carbon reduction initiatives; High Conservation Value management of land

Sustainable Products & Innovation

• Improved rice varieties
• Shatter-proof sesame variety

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water
• Economic Opportunity
• Safe and Decent Work
• Child Labor
• Diversity and Inclusion
• Nutrition and Health
• Food Loss and Waste

Environmental Achievements

• ~33% reduction in GHG intensity for Olam processing operations
• ~13% reduction in GHG intensity for third-party supply chain
• 100% traceability for directly sourced cocoa beans
• Significant reductions in water use intensity in processing

Social Achievements

• 773,000 smallholders receiving sustainability support (19% women)
• Launched Olam Healthy Living Campaign reaching almost 1 million people
• Supported 100,000 women to access economic opportunities
• Produced 78 billion servings of fortified foods (up 58%)

Governance Achievements

• Inclusion, Diversity and Equality at Olam (IDEO) Council established
• Strengthened Integrated Risk and Assurance Framework
• Improved engagement scores by 5% points in managerial population and 13% points across larger employee population

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and supply chains
• Supply chain disruptions
• Climate change impacts on crop yields and quality
• Child labor in third-party supply chains
• Water stress in some regions

Mitigation Strategies

• Implemented Crisis Management Team and Business Continuity Plans
• Developed alternative sourcing strategies
• Implemented climate-smart agricultural practices
• Developed Child Labour Monitoring and Remediation System (CLMRS)
• Improved water use efficiency
• Expanded AtSource platform for greater transparency and traceability

Supply Chain Management

Supplier Audits: At least 40 audits undertaken to assess human rights

Responsible Procurement

• Olam Supplier Code (OSC)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Increased pricing of greenhouse gas emissions
• Regulations requiring detailed environmental information

Opportunities

• Carbon trading
• Sustainable landscapes investment
• Biomass-based energy production
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: RSPO, FSC, BRC, FSSC 22000, Rainforest Alliance, Organic, 4C, Cotton Made in Africa, Better Cotton Initiative

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 10
• SDG 12
• SDG 13
• SDG 15
• SDG 16

Olam's sustainability initiatives contribute to these goals through various programs and partnerships.

Sustainable Products & Innovation

• Fortified foods
• AtSource platform
• Olam Direct app
• Circular coffee

Awards & Recognition

• Reuters Events Responsible Business Supply Chain Award
• Asset Triple A Sustainable Capital Markets Country & Regional Awards
• Adam Smith Awards – Asia’s Top Treasury Team 2020
• Kincentric Best Employer
• Great Place to Work
• HR Asia Magazine’s Best Companies to Work For

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas (GHG) emissions intensity from 0.13 in 2020 to 0.12 MT CO2e/MT of product in 2021 in own operations and Olam-managed farmer programs.
• Improved emissions to 1.72 MT CO2e/MT of product in plantations, concessions, and farms.
• CIB maintained its FSC® certification across 100% of its natural forest concessions in the Republic of Congo.

Social Achievements

• Provided sustainability support to 826,000 smallholders, providing training, seedlings and other measures to improve environmental impact.
• ~60% of primary workforce covered by collective bargaining agreements in 2021.
• Launched The Gorilla Coffee Alliance in South Kivu, Democratic Republic of Congo.

Governance Achievements

• 95% of ofi Tier 1 manufacturing and processing facilities are certified to Global Food Safety Initiatives (GFSI) recognised standards.
• Crown Flour Mill Limited in Nigeria achieved FSSC 22000 certification in 2021.
• Reviewed GFSI audits across 77 manufacturing facilities in the Olam Group.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events
• Ensuring that each supplier is following good environmental practices
• Halting deforestation in third-party supply chains

Mitigation Strategies

• Implemented rigorous sourcing requirements with third-party suppliers.
• Developed alternative sourcing strategies.
• AtSource and Living Landscapes Policy provide a formal framework for improving social and environmental impacts in agri supply chains.

Supply Chain Management

Supplier Audits: 92% of directly originated volumes in priority supply chains sourced through suppliers engaged through the Olam Supplier Code in 2021.

Responsible Procurement

• Olam Code of Conduct
• Supplier Code
• Living Landscapes Policy
• AtSource

Climate-Related Risks & Opportunities

Physical Risks

• Changing weather patterns impacting farmers

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: FSC®

Awards & Recognition

• Lighthouse Leader by the Workforce Nutrition Alliance

Environmental Metrics

ESG Focus Areas

• Climate Change
• Nature
• Livelihoods

Environmental Achievements

• Reduced CO2 emissions per metric tonne of product from cocoa processing facilities by almost 20% since 2017/18.
• 1.7 million trees distributed to farmers (almost a 360% increase since 2017/18).
• Achieved RSPO certification for all palm oil concessions in Gabon.
• Protected approximately 106,000 ha of natural ecosystems in Gabon.

Social Achievements

• Over 483,000 farmers received sustainability support with 19% women.
• Launched Terrascope, a smart platform enabling companies to measure their emissions comprehensively and accurately.
• Launched the first multi-stakeholder Living Income Summit.
• Expanded women’s empowerment initiatives in Nigeria.

Governance Achievements

• Established world-class Boards for both ofi and Olam Agri.
• Implemented a new Code of Conduct globally for ofi and Olam Agri.
• Strengthened grievance mechanisms to address concerns promptly and consistently.

Climate Goals & Targets

Environmental Challenges

• Ukraine-Russia war impacting global food supply chains.
• Inflationary pressures and rising interest rates.
• Supply chain disruptions.
• Increased working capital needs due to higher commodity prices.
• Unexpected China lockdown impacting almond and dairy operations.
• Reduced green coffee volumes in Brazil.
• Higher operating costs in cashew and peanut shelling.
• Reduced contribution from almond orchards.
• Severe flooding in Nasarawa State, Nigeria, damaging rice farm infrastructure.

Mitigation Strategies

• Leveraged global sourcing and origination network to minimize disruptions.
• Increased sourcing from the Americas, India, and Australia to compensate for disruptions from Russia and Ukraine.
• Adjusted selling prices to compensate for increased raw materials and manufacturing expenses.
• Improved margins by selling more value-added products and operating and expanding its own fleet of trucks.
• Focused on sourcing and processing local CPO in Nigeria.
• Restructured sesame business to focus on trading from selected origins and value-added processing in Nigeria.
• Implemented heat recovery machines in food processing facilities to reduce emissions.
• Implemented alternate wetting and drying (AWD) in rice farming to reduce methane emissions.
• Developed drought- and heat-resistant wheat seeds in Nigeria.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainable and climate-smart agricultural practices

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather events
• Chronic shifts in climate patterns

Transition Risks

• Increased carbon pricing or taxes
• Increased costs due to other regulations
• Capital investments into new technologies
• Shifts in consumer preferences
• Shifts in land prices
• Increased stakeholder concern

Opportunities

• Development of energy-efficient products
• Regenerative agriculture
• Agroforestry, conservation, and reforestation
• Biofuel markets
• Improving access to capital

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: RSPO, FSC®, SMETA, SEDEX, FSSC

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 12
• SDG 13
• SDG 15

The company's initiatives contribute to these goals through various programs and partnerships.

Sustainable Products & Innovation

• Lightly salted sustainable almonds in composite canister packaging
• AromaPak™ coffee packaging
• PurPod100® compostable single serve pods
• Compostable espresso capsules
• Recyclable, paper-based packaging for ground and whole bean coffees

Awards & Recognition

• Fortune 500 company (two consecutive years)
• Global Good Awards Sustainable Supply Chain of the Year
• Food Ingredients Europe Sustainability Innovation Award
• Peru for the SDGs 2022 Awards (Partnership category)
• B2B Marketing Awards Bronze award in the “Best Brand Initiative” category

Environmental Metrics

ESG Focus Areas

• Climate Action
• Ecosystems and Biodiversity
• Food loss, packaging and waste
• Healthy soils
• Water
• Economic opportunity
• Safe & Decent Work
• Nutrition and health
• People and Culture
• Diversity and inclusion
• Anti-corruption
• Supplier social and environmental assessment
• Ethics and compliance

Environmental Achievements

• Improved data quality for energy consumption through multiple layers of verification.
• Transitioning to solar power in several processing operations.
• Implementation of waste heat recovery system reducing natural gas and diesel use.
• Commissioning of a 1.3 MW cogeneration power plant using rice husks.
• Replacement of fuel-based forklifts with electric ones.
• 100% traceability to mill for all direct palm oil suppliers and 31% traceability to plantation.
• Olam Palm Gabon achieved 100% RSPO certification for its total production volume (155,229 MT).
• Regenagri® certification obtained for over 250,000 hectares of farmland in Côte d'Ivoire and 15,000 hectares in the United States.
• Reduced water needs by 30-40% in Vietnam through sustainable agricultural methods.

Social Achievements

• Increased the number of smallholders reached through sustainability programmes to ~940,000 farmers.
• Expanded sustainable sourcing offer through AtSource with 12,500 supply chains and approximately 483,000 farmers mapped.
• Mapping forest loss risk for 100% of direct supply chains in cocoa and coffee.
• Provided sustainability support to more than 940,000 smallholder farmers.
• 100% of Olam office staff had ABC and Code of Conduct training made available to them.
• Implemented new Codes of Conduct across Olam Agri and ofi.
• Workforce nutrition programme assessed worksites covering more than 30,000 people in 28 countries.

Governance Achievements

• Revised and implemented new Codes of Conduct across Olam Agri and ofi.
• Internal Audit anchors a quarterly Integrated Risk Assurance Framework which includes bribery and corruption risk.
• One confirmed case of corruption addressed with termination of services with one business partner.

Climate Goals & Targets

Environmental Challenges

• Significant challenges in ensuring each supplier follows good social and environmental practices.
• Scale of supplier base (millions of hectares, largely smallholders) makes full environmental due diligence impractical.
• Data gaps in 2022 energy consumption data for biomass.
• Double counting of emissions for purchased packaging and erroneous units of measurement in 2022 GHG inventory.

Mitigation Strategies

• Use of AtSource and Living Landscapes Policy to improve social and environmental impacts.
• Implementation of Supplier Code and Sustainability Assessment Checklist.
• Use of farm-level maps for more accurate GHG impact calculations.
• Addressing data gaps and correcting errors in 2022 data.
• Development and implementation of decarbonisation strategies for processing operations.
• Partnership with Schneider Electric for decarbonisation.
• Implementation of remediation plans for compliance issues.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Olam Supplier Code
• AtSource
• Sustainability Assessment Checklist

Climate-Related Risks & Opportunities

Physical Risks

• Reduced river base flows
• Increased flooding
• Rising sea levels

Transition Risks

• Rapidly evolving climate-related regulatory landscape

Opportunities

• Development of energy-efficient products
• Sustainable agriculture practices

Reporting Standards

Frameworks Used: GRI Standards

Certifications: RSPO, FSC®, ISCC, ISO 22000, FSSC 22000, BRC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 6 (Clean Water and Sanitation)

Various initiatives contribute to these goals through improved livelihoods, sustainable agriculture, renewable energy, climate action, biodiversity conservation, and water stewardship.

Sustainable Products & Innovation

• Drought- and heat-resistant wheat seeds

Awards & Recognition

• Food Ingredients Europe Sustainability Innovation Award (2022)

Environmental Metrics

ESG Focus Areas

• Livelihoods
• Land
• Water
• Climate Change
• Labour
• Food Security
• Food Safety

Environmental Achievements

• Achieved 2020 greenhouse gas (GHG) intensity targets for plantations/farms and Tier 1 processing (52% reduction against 2013 baseline for plantations/farms; 28% reduction for processing)
• Achieved 2020 water targets for Olam plantations and farms (>10% improvement in blue water intensity)
• Updated Sustainable Palm Oil Policy with Commitment to Forest Conservation
• First company globally to complete a High Conservation Value assessment for palm according to the HCV Resource Network
• First company to field test the HCS+ methodology for palm

Social Achievements

• 5th year of the award-winning Olam Livelihood Charter, covering 23% of all smallholder procurement in 2015 (344,466 farmers)
• Launch of the Olam Healthy Living Campaign, reaching over 270,000 people in Africa
• 24 billion servings of micronutrient fortified foods manufactured and sold across West Africa
• One of Africa’s most ambitious outgrower models launched with the Republic of Gabon for palm, banana and food crops
• 50% reduction in Lost Time Injury Frequency Rates (LTIFR) in Olam processing operations

Governance Achievements

• Updated and aligned policies to international standards (Health & Safety, Quality and Environment; HR & Social under development)
• Regained FSC® certificates for Republic of Congo concessions
• Completed 2-year term on the Steering Committee of the UN CEO Water Mandate

Climate Goals & Targets

Environmental Challenges

• Volatile commodity markets
• Depreciating currencies
• Slowdown in China
• Climate change-induced weather impacts
• Challenges faced by smallholder farmers (lack of infrastructure, education)
• Maintaining farmer loyalty
• Meeting 2020 targets for Supplier Code coverage (30% achieved vs 50% target)

Mitigation Strategies

• Investment in sustainable supply chain initiatives (US$36 million in FY15)
• Focus on differentiated and diversified portfolio
• Targeted acquisitions
• Olam Livelihood Charter improving yields for smallholders
• Investment in research and technology (Olam Farmer Information System)
• Collaboration with partners
• Updated goals and targets

Supply Chain Management

Supplier Audits: 30% of 2015 tonnage covered by Olam Supplier Code

Responsible Procurement

• Olam Supplier Code
• Olam Livelihood Charter

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• El Niño weather cycles

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Climate-smart agriculture

Reporting Standards

Frameworks Used: GRI (G4)

Certifications: FSC®, RSPO, ISO 22000, BRC

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 12
• SDG 13
• SDG 17

Alignment explained in various sections of the report

Sustainable Products & Innovation

• Micronutrient fortified foods
• deZaan®’s TRUEDARK™ cocoa powder

Awards & Recognition

• Sustainable Business Awards Singapore for Sustainability in the Community category
• OpX Sustainability Excellence in Manufacturing Awards (SEMA) for water conservation