Sustainability Report 2019

Commitment to improve global performance We have committed to improve our global performance on four environmental key performance indicators at processing facilities and farms under our operational control. In 2019, we added Moinhos Cruzeiro do Sul in Brazil to our consolidated processing companies. We set a target to improve our performance by 5% over the next five years until 2023, using our results in 2018 as the base year. Some of our five-year targets have been met by our 2019 results. Weather and asset utilisation contributed to our performance in 2019; processing volumes increased and we achieved improved environmental performance per tonne processed. Our focus will be on continued long term structural improvements to maintain these results. 6.7% reduction in total energy consumption 13.1% reduction in total GHG emissions 2.6% increase in share of renewable energy 15.7% reduction in total water withdrawal Performance in 2019 compared to 2018 In Argentina, for many years over 90% of our soy has been sourced from areas that bear no deforestation risk, from states outside the Argentine Gran Chaco. We aim to certify a larger share of our soy originating from South America as deforestation free. Our goal is to continually increase our volume of cotton traded under the BCI or Cotton Made in Africa (CMiA) certification programmes. Due to the nature of the cotton supply chain, our direct involvement with growers is limited and visibility into their production practices, particularly in the case of small-scale producers in the developing world, is constrained. Nevertheless, we seek to work with producers, ginners and other industry participants to encourage greater participation. In 2019, 24,246 tonnes of our invoiced cotton was BCI certified, which included cotton fromWest Africa, Brazil and, for the first time, the US. In addition, we continue to trade niche volumes of organic cotton from India. Our sources of palm kernel expeller (PKE) rely mostly on Roundtable on Sustainable Palm Oil (RSPO) certified suppliers – over 80% of supplies come from RSPO certified palm oil producers and RSPO members. Sustainable supply chains We take a risk-based approach when sourcing commodities from regions that may have a higher risk of unsustainable practices. There are continued concerns over deforestation relating to the soybean supply chain, especially in the Amazon and Cerrado regions of Brazil and in Gran Chaco, Argentina. Glencore Agriculture works with both producers and our customers to ensure that increasing global demand is not met at a cost to the environment. In the Amazon, we follow the Amazon Soy Moratorium and have successfully passed the annual audit in 2019. Since the start of the Moratorium in 2006, soybean production has been contributing significantly less to Amazon deforestation. In Cerrado, our first step has been to increase our direct sourcing of soy from known farms. Using satellite information, we can observe if the expansion of the farm occurs illegally and block any possible purchases from those areas. Collective industry- wide efforts focus on landscaping, value chain dialogues and yield improvement. Energy consumption and GHG emissions We achieved improved energy consumption and GHG emissions per tonne processed. Our ongoing focus will be on structural improvements to achieve these results beyond volume fluctuations. The share of renewably sourced energy consumed in our processing assets has increased from 72% to 74% of total energy consumption. The majority of renewable energy comes from our own biomass-to-energy systems in South America and Europe and we continue to implement similar solutions across the business when opportunities arise. Water extraction Water extraction includes all water taken from basin and river systems across our processing and farming activities. Fluctuations are driven by local conditions such as rainfall and ambient temperatures and by processing efficiency. We do not extract any water at our facilities in water scarce areas, as indicated by Aqueduct platform from the World Resource Institute. Several facilities have implemented water-saving programmes to ensure optimal use and to strive for reductions where possible. 60.4% Cerrado soy sourced direct from farmers (2018: 43%) 82% PKE from RSPO certified palm oil producers and RSPOmembers Our performance in 2019 Argentinian soy originating from risk-free areas 92+% 24,246 tonnes Better Cotton Initiative (BCI) certified cotton Glencore Agriculture Sustainability Report 2019 17