Management Model

Cargill’s strategy follows its goal to be a company recognized for the quality and excellence of the solutions delivered to its customers and partners in the agricultural, food, manufacturing, and risk management industries. Accordingly, the company focuses on innovation, its customers, talent management, collaboration among the different business units, and its commitment to honor all its commercial obligations.

Employees are engaged in and trained on strict ethical standards, which are expressed in the Cargill Code of Conduct. Operations are handled by experienced executives specialized in their respective areas and supported by corporate committees that help managers, ensuring that all decisions are taken in an increasingly assertive and responsible way.

Corporate Governance

GRI 4.1 | 4.2

Permanently improving internal
procedures helps mitigate risks.

Cargill is a private company and its shares are not traded publicly. The company’s highest authority in Brazil is its Executive Board, consisting of the CEO and seven directors. Additionally, the leaders of the Business Units and Functional Areas comprise the local Senior Leadership Team (SLT), which ensures the alignment between corporate strategy and company operations.

To support decisions and strengthen the link between strategy and operations, Cargill also has five corporate committees. These committees meet regularly or as necessary to discuss defined agendas relevant to the company and to produce action plans and business guidelines that are communicated to the respective areas.

Business Ethics Committee

This committee ensures compliance of the Code of Conduct and manages any risks involving Cargill’s brand and reputation. It also defines the company’s position on public policies and in the interaction with its stakeholders, to ensure businesses are conducted with integrity and transparency.

Sustainability Committee

This committee’s role is to disseminate the sustainability strategy to all company areas and communities. It studies the social and environmental impact of the company’s operations, assesses ways to mitigate this impact, and looks for opportunities to apply best practices.

Human Resources Committee

This committee supports talent attraction, selection, and management, based on guidelines that promote diversity and inclusion. It also discusses and reviews policies for compensation, benefits, labor practices, pension fund investments, and career transition initiatives.

Financial Risks Committee

This committee defines policies, standards, and procedures to properly manage risks and ensure business continuity in the face of changes in foreign-exchange rates, commodity prices, and economic and financial factors that can impact operations.

Workplace Health and Safety Committee

This committee monitors indicators on employee health and safety to identify and manage areas of risk. It also supports initiatives to comply with and improve safety standards and procedures within and outside the company.

Communication between leaders and employees is encouraged to support ongoing improvement of corporate governance. Voz Cargill (Cargill Voice) and Comunicar para Conectar (Communicate to Connect) are part of this effort. Voz Cargill provides a means for employees nationwide to talk to the CEO and company directors every four months, using conference calls and online chats. It represents an opportunity to clarify doubts and interact transparently with the leadership. Comunicar para Conectar has been happening every four months since 2008. It is a gathering of the CEO, directors, and managers in which they can reflect on policies, guidelines, and results, and discuss goals, strategies, and perspectives. The meeting is transmitted in real time to plant managers throughout Brazil, so that any decisions are speedily conveyed to the operational teams. GRI 4.4

Risk Management

Cargill monitors market risks and macro indicators, such as worldwide demand and climate change, to anticipate any scenarios that might impact the company’s results. This preventive effort helps plan actions and improve internal processes to mitigate risks and ensure business continuity. The main risks are:

Credit risk

This represents the possibility of losses from the company failing to receive funds transacted with financial institutions, borrowers, or counterparties in agreements. At Cargill, this risk is controlled by analyzing the financial situation of the counterparties and predefining credit limits. Transactions with financial institutions rely on reports of credit rating agencies.

Interest and foreign-exchange rates risk

This risk results from unfavorable fluctuations in the currency exchange rate of exporting and importing nations between the time the price is quoted and the time the transaction is settled. To mitigate this risk, the company hedges these transactions and invests abroad to cover purchases and sales in other currencies.

Liquidity risk

This risk results from the possibility of the company lacking resources to honor its obligations because of a mismatch between assets and liabilities, which could result in an acceleration of asset settlement. Cargill reconciles the inflow and the outflow of cash to ensure the necessary liquidity to honor its obligations.

Commodity price risk

This results from fluctuations in the market price of commodities traded by Cargill, which can impact both costs and revenues. To mitigate exposure to this risk, Cargill enters commodity future transactions at the Chicago and New York mercantile exchanges.

Risks resulting from climate changes

This risk results from climate changes in different parts of the world that can impact yields, demand, and consequently the company’s businesses. By continually monitoring these changes, Cargill is able to forecast scenarios to plan its strategies and add confidence to the company’s operations.

Cargill’s experience in risk management has enabled the company to provide these services to farmers, agricultural businesses, and the food industry. Accordingly, Cargill Risk Management (CRM) advises selected customers on product pricing, agricultural commodity trading, and hedging against market risks.

Intangible Assets

Cargill manages its intangible assets to maintain its competitive advantage in the market. These assets include the company’s brands, employees, market intelligence, and the recognition of its stakeholders.

Brands

GRI 2.2

In over 150 years of worldwide activities and 50 years in Brazil, Cargill has built a solid corporate brand that is synonymous with trust. This is reflected in the company’s transparent dealings with its stakeholders, in employee engagement, and in product safety. In Brazil, Cargill’s retail brands are well known. The Liza brand of cooking oil represents quality and tradition, is known by 99 percent of oil users, and has been found in Brazilian homes since 1975. The Pomarola brand of tomato sauce is known by 94 percent of users of this type of product and is found in 76 percent of Brazilian households, according to Ipsos, an opinion survey company.

In 2014, these brands joined social media to further strengthen their bonds with consumers. Pomarola now has a page on Facebook and a brand channel on Youtube that contain information about products, sustainable initiatives, recipes, and consumer services. The brand channel features videos with recipes using Pomarola products and tools that help viewers prepare a dish, such as the number of servings and preparation time.

On more traditional media like TV and billboards, as well as on the internet, the brand launched the “The” Sauce campaign, which highlights the product’s flavor when preparing dishes for all occasions. Click here to watch the movie.

               	  Cargill’s products have been found in Brazilian homes for decades and are the secret behind many family recipes.
              

Liza launched Espaço Liza (www.espacoliza.com.br), a website that describes, the quality and the benefits of Liza Canola, Milho, Girassol, and Equilíbrio cooking oils. Using the “Eating well makes you feel good” slogan, this channel provides information on the specific functions of foods and their impacts on health, well-being, and beauty. Well-known internet bloggers took part in the launching of this channel and tried out its beauty tips. The brand is also present on Instagram (@instasalad_liza), where it presents the salad dressing line and shows how these products can make dishes even tastier. Recipes are posted daily using one of the brand’s nine salad dressings, under the #saladinhatop hashtag.

Click the brands to
access their websites

Human resources

Cargill’s results bear witness to the commitment its people have with the company’s Mission, Vision, and corporate guidelines. Well aware of this commitment, the company invests in developing and recognizing its talent. Click here to know more.

Safety

At Cargill, workplace safety extends beyond the compliance of its legal obligations. It is a reflection of the company’s respect to its employees and their families and a concern for the quality of the products offered. Click here to know more.

Strength and reputation

Cargill’s reputation depends on how its stakeholders see the company. Accordingly, consistent results and strong business performance result in the public seeing the company as having great potential for innovation and for developing quality, safe, and socially and environmentally responsible products.

Recognition

GRI 2.10

The recognition of stakeholders reflects proper business practices, thoughtful management of the value chain, and contributions to local communities and society.

41^st edition of Melhores & Maiores (Best and Biggest) | Cargill ranked third in the list of the 400 largest agribusiness companies, compiled by Exame, a business periodical. The company
also ranked third among the largest Consumer Products companies.

ABAP-GO Sustainability Award | Cargill was awarded second place in the Innovation category by the Brazilian Association of Advertising Agencies of the State of Goiás (ABAP-GO). This award recognizes the company’s internal and external communication initiatives under the 2013 Pomarola Sustainability Recipe.

Professional Kitchen Award | Cargill was awarded gold, silver, and bronze in several categories in the fifth edition of this award, which recognizes the best-known food service brands in Brazil.

Trusted Brand | For the 13^th time, the Liza brand won the Trusted Brands survey in the Cooking Oil category. It remained unchallenged in all editions of this award. The survey is conducted by Seleções (Reader’s Digest) and by Ibope Inteligência, an opinion survey company.

Fornecedor Nota 10 (Top Supplier) | This award is given by the Brazilian Association of Wholesalers and Distributors (ABAD) in partnership with Nielsen, a marketing research firm. Cargill was given this award in the Stock, Sauces, and Condiments category.

12^th Benchmarking Ranking | This is an initiative of the Brazil Benchmarking Program, which encourages Brazilian companies to adopt social and environmental best practices. In 2014, the company ranked among the top ten companies in sustainability benchmarking, thanks to Programa Ação Renove o Meio Ambiente (Renew the Environment Initiative Program).

Second Ranking of Sustainable Products and Technologies | Cargill ranked third in the Sustainable Initiatives category in the list prepared by Instituto Sustentar and NHK Sustentabilidade. The company was also recognized for its Renew the Environment Initiative Program.

Most sustainable companies according to the media | In 2014, the company ranked 10^th in this list organized by Imprensa, a magazine, and PR Newswire, a consultancy. This initiative recognizes companies that best communicated their sustainability initiatives.

Social Seal | The Social Services Secretariat of the city of Ponta Grossa (PR) awarded Cargill the Social Seal in recognition of the company’s initiatives benefiting local communities.

Social Fuel Seal | This certification is issued by the Ministry of Agricultural Development to biodiesel producers that offer technical support and promote social inclusion and regional development by producing both income and jobs for family farms – know more about the Cargill Family Farming Program. Diesel producers certified with this seal enjoy tax benefits (lower PIS and Cofins tax rates), can take part in public biodiesel auctions organized by the National Oil Agency (ANP) and Petrobras, and have other commercial incentives.

GRAACC Supporter Certificate | Fundação Cargill was certified as a supporter of GRAACC, an organization that assists children and teens with cancer, as a result of its funding for a project to monitor nutrition needs of cancer patients. Click here and know more about this initiative.

The Largest of Goiás 2014 | Cargill was recognized as one of the largest ICMS taxpayers in the state of Goiás.

Recognition in the Sustainability Pact | During a 2014 event announcing the results of the five years of this pact, Cargill was recognized by Walmart Brazil for its sustainable practices, especially the More Sustainable Soybean project. Click here and know more about the Sustainability Pact.

Visionary Award | This was a global tribute to Cargill by Unilever, as a result of the partnership between the two companies in developing solutions to reduce environmental impact and promote sustainability. The award was received in London during an event for suppliers organized by Unilever. GRI 2.10

Pelo 13º ano, a Marca Liza permanece invicta na pesquisa Marca de Confiança — For the 13^th year, the Liza
brand has been part of the
Trusted Brand survey.

Entrega do prêmio no 12º Ranking Benchmarking — Award ceremony of the
12^th Benchmarking Ranking.

Reconhecimento no Pacto pela Sustentabilidade do Walmart Brasil — Recognition by Walmart
Brazil’s Sustainability Pact.

                    	The awards and acknowledgements reflect the company’s efforts in managing its value chain and contributing to society.
                    

Ethical Conduct

Cargill does more than merely comply with the laws of the countries in which it does business.
It builds and maintains bonds with many stakeholders based on respect and transparency. Accordingly, Cargill follows the strict ethical principles defined in its Code of Conduct, which is available on the company’s website to all employees and suppliers.

All new employees undergo training on this Code of Conduct. Upon conclusion, each participant signs a certificate of commitment that is kept in the employee’s file. In 2014, 100 percent of the new employees received this guidance and signed this certificat. GRI SO3

The respect with which Cargill and its employees serve the consumers of the company’s products results from training based on its ethical principles. Additionally, all feedback received through its customer service channels (SAC) is used to permanently improve operations. In 2014, the SAC received 12,117 concerns from consumers, 97 percent of which were addressed in the same year. Independent surveys also show that products Cargill manufactures, distributes, and sells are the most memorable and are found in most Brazilian homes. Know more clicking here. GRI PR5

Click here to read the Code of Conduct.

Cargill Guiding Principles

We obey the law.

We conduct our business with integrity.

We keep accurate and honest records.

We honor our business obligations.

We treat people with dignity and respect.

We protect Cargill’s information, assets, and interests.

We are committed to being a responsible global citizen.

Stakeholder Relations

Em colaboração com a The Natural Conservancy (TNC), a Cargill desenvolve diversas iniciativas em sua cadeia de valor. — In partnership with The Nature
Conservancy (TNC), Cargill
develops a series of initiatives
throughout its value chain.

GRI 4.15

The company is always looking for opportunities to create new relationships and to strengthen existing bonds with its stakeholders. Supported by an independent consultant, in 2013 Cargill
prepared a Public Relations diagnostic that reviewed communication material, audients, and spokespersons and held meetings at all business units.

Based on this study, the company prepared a strategic communication plan to improve relationships with priority audiences based on the opportunities identified, the structure of the Corporate Affairs department, and the available budget for creating campaigns and initiatives.

Global Pacts and Initiatives

Cargill is well aware of the responsibility that comes with being a part of a global supply chain. Accordingly, over the years it has entered partnerships and signed national and international cooperation agreements to minimize environmental impact and help society thrive. During the 2014 UN Climate Summit, Cargill made a global commitment to support the New York Declaration of Forests. This is Cargill’s way to help reduce worldwide forest losses and improve food security.

In Brazil, the company is a signatory of the Soy Moratorium, and maintains projects such as the More Sustainable Soy in partnership with The Nature Conservancy, an NGO, to encourage the sustainability of the supply chain to conserve forests and rivers of the Tapajós Basin. In its 10 years in the state of Pará, the project has helped over 490 farm properties comply with environmental regulations and monitor deforestation. In the state of Mato Grosso, the project is more recent, but it has already covered 847 farm properties in the 10 municipalities benefited by the Rural Environmental Registry (CAR).

Another example is Cargill’s signing Protocolo Verde de Grãos (Green Grain Protocol), which sets stricter guidelines and criteria for commercial transactions between companies and farmers of the state of Pará, to ensure that the grain traded does not come from illegally deforested areas.

Programa “de grão em grão” em Ilhéus (BA). — The “*de grão em grão*”
program in Ilhéus (BA).

In the palm supply chain, all oil procurement, processing, and trading procedures have been certified under the criteria established by the Roundtable on Sustainable Palm Oil, a Brazilian achievement that will be an example for other countries to follow.

Among the many agreements signed and maintained in 2014 are:

Sedex

This is an organization that disseminates best business practices in global supply chains. As the largest collaborative platform for supervising and managing these supply chains, Sedex helped reduce risks and protect the reputation of Cargill, which also uses this platform to inspect and audit the company’s plants.

Childhood Brazil

This is the Brazilian branch of the World Childhood Foundation (Childhood), which works to protect children. Cargill is part of Programa Na Mão Certa, an initiative created by Childhood Brazil to engage government, businesses, and third-sector organizations to fight sexual exploitation of children and teenagers on Brazilian roads.

The Natural Conservancy (TNC)

This is the world’s largest environmental conservation organization, with which Cargill develops a series of initiatives designed to preserve nature in the company’s value chain. They include the More Sustainable Cocoa and the More Sustainable Soybean programs. Click here to know more.

Fundação Abrinq pelos Direitos da Criança e do Adolescente

Since 2007 the company has been part of the Empresa Amiga da Criança program, designed to get companies involved in social initiatives to protect the rights of children and teenagers. Cargill is committed to not using child labor and to not employ teenagers in unhealthy, hazardous, or night work; to warn its suppliers that any proven reports of child labor will end commercial ties; promote awareness initiatives alongside customers, suppliers, and communities; and to develop initiatives to benefit children and teens. GRI HR6

National Pact for the Elimination of Slave Labor

Since 2006, Cargill has been a signatory of this pact, which provides tools for businesses and society to not trade products from suppliers using slave labor. The company is also part of InPACTO, an organization created by companies supporting the national pact. To this effect, Cargill regularly checks the Slave Labor Blacklist published by the Ministry of Labor in order to avoid having any dealings with blacklisted companies. GRI HR7

Sustainability Pact

This Walmart Brazil initiative engages suppliers in initiatives to reduce environmental impact. It rests on three pillars: Amazon, Responsible Procurement, and Residue Management. Cargill has been a signatory of this initiative since it was created in 2009.