Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Agriculture
• Nutrition
• Positive Industry
• Local Development
• Product Guarantee

Environmental Achievements

• Approximately half of the energy consumed in our facilities comes from renewable sources.
• Five Tereos facilities in Brazil were awarded the “Green Energy” label by UNICA.
• Roughly 99% of raw materials are transformed, with waste transformed into new resources.
• Reduced water consumption by 20% by 2020 (target), with Boiry site achieving significant progress through innovations.
• Reduced energy consumption per ton of product (target -10%).
• 46.4% renewable energy in the energy mix in 2017/2018.

Social Achievements

• Signed the United Nations Global Compact.
• Implemented a safety culture aiming for zero accidents.
• Developed a “zero risks at home” program in Brazil to extend safety awareness to employees' families.
• Implemented development programs with communities.
• Provided 39 hours of training on average per employee.

Governance Achievements

• Published a Group code of ethics and a guide to good business practices.
• Launched the One Tereos Awards to recognize collective transformation initiatives.
• Developed a “Responsible Supplier” charter for all suppliers.

Climate Goals & Targets

Environmental Challenges

• Feeding 10 billion people in 2050, requiring a 70% increase in agricultural production.
• Meeting the nutritional needs of tomorrow with consumers increasingly sensitive to product origin and naturalness.
• Digitalizing the sector to gain eco-efficiency.
• Contributing to the fight against climate change, as agriculture accounts for 24% of CO2 emissions.
• Reducing odours from sugar beet processing.

Mitigation Strategies

• Helping growers produce more and better through agronomic know-how and supply chain control.
• Committing to food traceability.
• Deriving full value from agricultural raw materials.
• Financing agronomy research.
• Proposing new solutions to prepare for new consumer habits.
• Exploring food of the future, such as plant proteins.
• Capitalizing on new technologies to combine higher yields with lower environmental impact.
• Using agronomy data analysis to develop precision farming.
• Ensuring the circular economy is at the heart of actions.
• Respecting the earth and biodiversity through integrated agriculture and input reduction.
• Establishing an “odour observatory” to measure and address odours.

Supply Chain Management

Responsible Procurement

• Responsible Supplier charter covering compliance, labor standards, health & safety, environmental protection, anti-corruption, and anti-land grabbing.

Climate-Related Risks & Opportunities

Physical Risks

• Weather conditions impacting raw material availability and quality.

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: SAI, Bonsucro, ISO 9001, ISO 14001, OHSAS 18001, FSSC 22000, ISO 50001

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)

Tereos' CSR policy contributes to these SDGs through sustainable agriculture, nutrition, positive industry, local development, and product guarantee initiatives.

Sustainable Products & Innovation

• Sweet & You (sugar reduction platform)
• Epi&Co range (plant proteins)
• Organic sugar

Awards & Recognition

• One Tereos Awards (various categories)
• CDP ranking among the 12% of companies with the best assessment for reducing greenhouse gas emissions.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water Management
• Circular Economy
• Human Rights
• Sustainable Agriculture
• Safety
• Community Development
• Employee Well-being
• Responsible Procurement
• Governance

Environmental Achievements

• Reduced CO2 emissions by 40% at the Lillers plant by switching from coal to gas boilers.
• Reduced water consumption by 50% during washing at the Connantre plant.
• 30% of sugarcane processed in Brazil was Bonsucro certified.
• Increased renewable energy share in energy mix to 55%.
• Reduced CO2 emissions by 220,000 tonnes through increased rail transport in Brazil.

Social Achievements

• Launched Gel Hydro®, a hand sanitizing gel made from sugar beet ethanol.
• Donated alcohol and hand sanitizer to health authorities during the COVID-19 pandemic.
• Implemented safety initiatives resulting in a 30% reduction in accidents.
• Received a “Gold” rating from EcoVadis for sustainable and responsible development.
• Received a B rating from CDP for environmental impact.

Governance Achievements

• Implemented Process Safety Management to improve asset and process safety.
• Improved transparency and proximity to cooperative members.
• Conducted commercial, industrial, and financial audits to improve performance.

Climate Goals & Targets

Environmental Challenges

• High level of debt.
• Insufficient operational profitability.
• Beet yellows virus impacting sugar beet yields.
• Market volatility in sugar and starch markets.
• Climate change impacts (droughts, extreme weather).
• Competition in starch and sweeteners market.
• High fixed costs in starch and sweeteners business.

Mitigation Strategies

• Implementing a margin-oriented strategy.
• Divesting non-core activities.
• Improving commercial efficiency and cost control.
• Modernizing energy installations and increasing renewable energy.
• Developing alternative sourcing strategies.
• Implementing cost reduction measures in starch and sweeteners business.
• Investing in new technologies and process improvements.

Supply Chain Management

Responsible Procurement

• SAI Platform evaluation for wheat and corn suppliers.
• Bonsucro standard for sugarcane suppliers.
• Farm Sustainability Assessment (FSA) in Spain.

Climate-Related Risks & Opportunities

Physical Risks

• Droughts

Transition Risks

• Rising CO2 prices
• Regulatory changes

Opportunities

• Development of energy-efficient products
• Biofuels production

Reporting Standards

Frameworks Used: GRI, EcoVadis, CDP

Certifications: ISO 14001, ISO 50001, Bonsucro, AB (Agriculture Biologique), Cosmos organic cosmetics standard, ISO 9001, Smeta, Kosher, Halal, FSSC 22000, FDA

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production

Sustainable Products & Innovation

• Organic beet sugar
• HVE sugar
• Organic alcohol for cosmetics
• Epi&Co plant-based recipes

Awards & Recognition

• Two international first prizes for Plant Manager Leadership Programme

Environmental Metrics

ESG Focus Areas

• Sustainable agriculture
• Protection of the environment
• Positive industry
• Responsible, healthy and quality nutrition
• Employees and local development

Environmental Achievements

• Reduced water consumption in operations by 12% from a 2017/2018 baseline
• Completion of first vinasse biogas power plant
• 42% of sugarcane (company and third-party grown) certified by Bonsucro
• Reduced sugarcane burn area by more than 50% compared to the previous crop year

Social Achievements

• Awarded Great Place to Work (GPTW) certification
• Launched Amigo Produtor program to strengthen relationships with partner growers
• Invested approximately R$ 3.8 million in professional training and development
• Received an award in the “Valuing Diversity” category for a women-only machine operator course

Governance Achievements

• Established a Tactical Climate Change Committee
• Created six tactical committees to advise on ESG issues
• Improved integrity program by implementing internal policies on ethics, integrity and communication

Climate Goals & Targets

Environmental Challenges

• Impacts from climate change (drought and frost) affecting crop yields and financial performance
• Volatile ethanol market in Brazil

Mitigation Strategies

• Expanding ethanol exports to reduce exposure to volatile market
• Implementing various initiatives to reduce emissions intensity (e.g., replacing nitrogen fertilizers with vinasse)
• Experimenting with biomethane to fuel truck fleet

Supply Chain Management

Responsible Procurement

• Procurement policy with provisions on human rights, child labor, forced labor, and anti-corruption; Social Responsibility Code for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Frost

Transition Risks

• Regulatory changes
• Carbon-tax risks

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI Standards, Core option

Certifications: Bonsucro, EcoVadis, SAI/FSA, I-REC, CARB, EPA, Green Energy Label, Etanol Mais Verde, RenovaBio, UN Global Compact, ISO 22000, FSSC 22000, Kosher, Halal, Organic, GMP Plus, SMETA – SEDEX

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 8
• SDG 10
• SDG 12
• SDG 13
• SDG 15

Material topics mapped to relevant SDGs

Sustainable Products & Innovation

• Biogas from vinasse
• Biomethane
• Dry yeast for animal feed

Awards & Recognition

• Mastercana Social award in the “Valuing Diversity” category

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced water consumption by 12% compared to the 2017-2018 harvest
• 77% of localized vinasse was applied to sugarcane roots, reducing the use of mineral fertilizers
• Produced 1,226 GWh of renewable energy from sugarcane biomass
• Reduced burnt production areas by 69% compared to the previous harvest
• 51.5% of sugarcane certified by Bonsucro and FSA-SAI

Social Achievements

• Awarded GPTW (Great Place to Work) certification
• 67% of hirings utilized internal personnel
• Donated over R$ 1 million to social projects
• Hosted the Women in Agro Workshop, bringing together more than 200 women
• Implemented the ‘Divertidamente’ program for employees’ children
• Launched the ‘Tereos Consciente’ movement for internal sustainability awareness

Governance Achievements

• Launched the Agribusiness Operations Center (COA)
• Secured two Sustainability Linked Loans totaling USD 155 million
• Established two Sustainability Linked Loans in the 2022 | 2023 harvest, totaling USD 155 million, for a term of five years and involving a total of seven banks

Climate Goals & Targets

Environmental Challenges

• Plantation recovery work needed due to adverse weather conditions in the previous harvest
• Alteration of taxes in the fuels segment undermined ethanol competitiveness
• Fires on sugarcane plantations resulting in fines

Mitigation Strategies

• Invested in solutions to optimize and increase operational efficiency
• Increased sugar production mix to 67%
• Filed appeals against fines for fires on sugarcane plantations
• Implemented fire prevention and fighting plans
• Invested R$ 23.5 million in a vinasse use expansion project

Supply Chain Management

Supplier Audits: 6 suppliers audited and received FSA-SAI certification in 2022-2023

Responsible Procurement

• Due diligence process
• Know Your Counterparty procedure
• Goods and Services Procurement Policy
• Supplier Management Program
• Amigo Produtor Sustentável program

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions affecting sugarcane production

Transition Risks

• Tax alterations affecting ethanol competitiveness

Opportunities

• Development of energy-efficient products and processes
• Production of biofuels to replace fossil fuels

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: Bonsucro, Bonsucro EU-RED, CARB, I-REC, FSSC 22000, Kosher, Halal, Organic, Green Energy Seal, GMP+FSA, SMETA – SEDEX, EPA Registration

Third-party Assurance: SGS do Brasil Ltda.

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 13
• Goal 15

Various initiatives contribute to these goals through sustainable agriculture, water management, renewable energy production, waste reduction, climate change mitigation, biodiversity preservation, and responsible supply chain management.

Sustainable Products & Innovation

• Biofuels
• Renewable electricity

Awards & Recognition

• Mastercana Social award for agricultural machinery operating course

Environmental Metrics

ESG Focus Areas

• Sustainable Agriculture
• Protection of the Environment
• Preservation of Resources
• Responsible Consumption
• Employees and Local Development
• Ethics and Anti-corruption
• Information Systems Security
• Responsible Purchasing

Environmental Achievements

• Updated carbon balance in compliance with the GHG Protocol
• Defined climate roadmap according to SBTi 1.5°C FLAG Net-Zero guidelines
• Climate roadmap approved by the Board of Directors
• SBTi file submitted
• Completed a double materiality analysis
• NFS-to-CSRD gap analysis
• Boiry and Lillers sugar factories improved processes by installing carbonation sludge filter presses, reducing lorry trips and energy savings.
• Significant investments in low NOx emission treatment plants and boilers at French sugar factories.

Social Achievements

• Mandatory training on Ethics, Anti-corruption and GDPR for networked employees
• Launched Climate Fresk training for employees
• Improved average score in the Great Place to Work assessment in Brazil (78 to 86 points)
• Launched Diversifica Tereos program in Brazil, increasing women in workforce and leadership positions
• Implemented a single Human Resources information system
• New “Share & Talks” initiative to improve communication between Management Committee and employees.

Governance Achievements

• Quarterly meetings with the CSR Specialists network
• Monthly meetings with Sustainability Champions
• Established a new Group Public Affairs, CSR and Communications Department
• Completed ethics and compliance risk mapping
• Acquired a risk management platform
• New third parties added to the scope of the assessment procedure
• Mandatory e-learning training campaign on Ethics, Antitrust, Anti-Corruption and Data Protection for employees.

Climate Goals & Targets

Environmental Challenges

• Reducing the environmental impact of upstream agriculture
• Controlling environmental impacts of industrial and agricultural activities (waste, biodiversity, etc.)
• Global warming and water shortages
• Meeting growing demand for responsible products
• Improving HR function efficiency and anticipating skills loss
• Promoting diversity and preventing discrimination
• Cyber risk
• Evaluating and monitoring the social and environmental performance of major suppliers

Mitigation Strategies

• Agricultural raw material certification standards
• Biodiversity projects, optimising resources and limiting inputs
• Low carbon agriculture
• High-performance agriculture through trials and decision support tools
• Employee training and development
• Investing in low NOx emission treatment plants and boilers
• Implementing anti-odour devices and improved effluent management
• Odour monitoring centres in partnership with Odometric
• Agreements with carriers for biofuel-powered lorries
• Optimisation of transport and soil removal systems
• Regenerative agriculture programme participation
• CarbonThink project partnership
• Action plan to reduce water consumption in Europe and Brazil
• Water recycling in production processes
• Investing in water storage basins and innovative recycling units
• Supplier segmentation and adapted requirements
• Annual supplier audits and EcoVadis evaluations
• Corrective action plans for underperforming suppliers
• General Information Security Policy (GISP)

Supply Chain Management

Supplier Audits: 37 audits (2023-24)

Responsible Procurement

• Responsible Purchasing policy to evaluate and monitor social and environmental performance of major suppliers
• EcoVadis evaluations of suppliers
• Corrective action plans for underperforming suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Droughts

Transition Risks

• Regulatory changes

Reporting Standards

Frameworks Used: GHG Protocol, SBTi

Certifications: ISO 14001, ISO 50001, ISO 9001, ISO 22000, FSSC 22000, SMETA, Bonsucro, Organic Farming, HVE, 2BSVS

Third-party Assurance: EY & Associés

Sustainable Products & Innovation

• Ensemble™ product range
• New fibre
• Actilight® fructo-oligosaccharide dietary fibre
• Stevia
• Maltilite® maltitol
• Plant proteins
• Maltodextrins