ASSURANCE
STATEMENT

BSD Consulting has carried out an independent evaluation of the process used to produce Bunge's 2012 Sustainability Report, which was carried out according to GRI (Global Reporting Initiative) guidelines.

Independence

We have been engaged as fully independent consultants and can state categorically that no member of BSD has consultancy agreements or any other commercial ties of any kind whatsoever with Bunge. BSD Consulting is licensed by AccountAbility as an assurance provider (AA1000 Licensed Assurance Provider), and registered under No. 000-33.

Our Field of Expertise

BSD Consulting specializes in sustainability. The assignment in question was carried out by a team of experienced professionals specializing in independent evaluation processes.

Responsibilities and Limitations

This Sustainability Report has been drawn up by Bunge, which is responsible for all its content. The Assurance Statement aims to inform stakeholders the BSD's findings in relation to the company's adherence to the three principles of the AA1000AS 2008, as well as in relation to the credibility of the information published in the report. Verification of financial data was not, however, designated as one of BSD Consulting's attributes. Furthermore, BSD's Assurance Statement provides confirmation of the level of implementation of the GRI-G3 model.

Objectives and Scope

The evaluation process is designed to provide Bunge's stakeholders with an independent assessment of the report's quality, the company's sustainability management processes, its overall compliance with the principles of the AA1000AS 2008 and the continuity of the processes already implemented. The scope of our assignment encompasses the information contained in Bunge's 2012 Sustainability Report, in its complete and extended version, covering the period between January 1st, 2011, and December 31st, 2011.

Methodology

The independent evaluation of Bunge's report was carried out in compliance with the AA1000 2008 Assurance Standard, type 1, which provides a moderate level of assurance. The process includes the evaluation of adherence to the three Principles of the AA1000AS: Inclusivity, Materiality and Responsiveness.

The procedures carried out during the assignment included:

  • A Review of the content of the Sustainability Report;
  • Understanding the flow of the processes used to obtain and generate information for the Sustainability Report. BSD was not, however, required to validate the quantitative data.
  • A nalysis of information in the media in general, websites and the legal framework;
  • Interviews with key-area managers on the relevance of the information used to manage and report on sustainability;
  • Face-to-face interviews with the company's vicepresidents and directors;
  • When appropriate, verifying information regarding the company's sustainability performance with top management;
  • Checking evidence of distance consulting with external stakeholders;
  • Checking the relevance of the information in the Sustainability Report from the point of view of external audiences.

Key Findings in relation to Adherence to the AA1000AS 2088 Principles

1. Inclusivity – deals with the participation of stakeholders in the development of a transparent and strategic sustainability management process.

  • In 2011, Bunge consulted its stakeholders by means of a face-to-face panel held in São Paulo. The selected business areas suggested stakeholders to be included in the process, based on their market relations, however, no formal criteria were established for favoring or selecting stakeholders based on sustainability. In time for the next cycle, we recommend that the company broaden its engagement with communities and other relevant stakeholders in areas where its operational units are based, going beyond mere public hearings and making use of, for example, its Bunge Natureza program. It is important to ensure the inclusion of groups of stakeholders who have not yet been heard, thereby giving due and satisfactory attention to the impact, influence and scope of the company's activities.

  • Bunge Brasil's Executive Committee, responsible for the decision making processes, includes the company's CEO (Chief Executive Officer) and its Vice- Presidents, as well as the new Vice-Presidency for Institutional Relations, Communication & Sustainability, which has as a strategic role interacting with both government and the sector, in order to establish partnerships aimed at expanding the logistical and transport network, and at resolving other issues relevant to the sector's and the company's growth.

  • The area of sustainability has been expanded, taking on new staff and seeking to extend its interaction and transversal activities with other Bunge Brasil business and support areas. It is important to disseminate knowledge internally in relation to the subject of sustainability, at all hierarchical levels of the company, in order to be able to integrate socioenvironmental initiatives into routine and operational activities, and ultimately foster improvements in management and innovation.

2. Materiality (or Relevance) – topics of interest that can help stakeholders draw their own conclusions with regard to the organization's economic, social and environmental performance.

  • The choice of material issues to feature in the report was entrusted to the corporate sustainability area, based on an analysis of the process of consulting external stakeholders, resulting in the matrix that is a combination of the topics of greatest interest to stakeholders and those of most strategic importance to Bunge. This matrix was, however, based on interactions going back to 2008, and for the next cycle, we would like to recommend that the present-day context be evaluated so that the topics covered relate more accurately to the period being covered by the report.

  • Bunge Brasil is a complex company that is regularly subjected to operational changes. Hence, it is emphasized the importance of a regular review of its materiality process, so that it can obtain results that are up-to-date and consistent and that take into account the company's sustainability context. New operations have distinct impacts and issues that need to be considered within the scope of sustainability, and need to be taken into account when defining the materiality for the next cycle.

  • The report provides a general view of the main topics of relevance that were identified in consultations with external stakeholders, over recent years. It is important that the company delve more deeply into these specific topics, which include: reverse logistics, post-consumption impacts, approach to and management of transport emissions, the impacts of biotechnology on the health of consumers and on biodiversity, and socio-environmental risk management in the supply chain.

Bunge Brasil has given ample evidence of its compliance with the strategic direction established by its Sustainability Platform. The following are some of the key facts that support this:

  • Climate Change: furtherance of its commitment to using renewable and alternative sources of energy, to self-sufficiency in timber harvested from planted rather than virgin forests, and to the reduction in land burning to prepare for the planting of sugar-cane (mechanized harvesting). A review was carried out of the calculations made in relation to greenhouse gas emissions, including direct biogenic emissions (biomass) and the use of emission factors under the Brazilian GHG Protocol Program. The benefits of using biomass are shown using a hypothetical calculation of emissions avoided, which does not reflect the company's reduced emissions. It is important to show Bunge's position in relation to scope 3 Greenhouse Gas Emissions, which include logistics and transport.

  • Sustainable agriculture: existing processes of crosschecking data with that of IBAMA, the Ministry of Labor and Employment and the Soy Moratorium were maintained. However, Bunge could improve its process of analysis and risk management of critical suppliers in relation to aspects of sustainability. It is important that the company develop more affirmative initiatives in relation to those suppliers who have been blacklisted, along the lines of providing training in human rights and environmental issues, for example. In the Stakeholder Panel, the new Biodiversity and Land Use Policy has been validated. • Waste reduction: the recommendation is that waste management be standardized between the different business areas and that the terms recovery, reuse and recycling be aligned. Sugar & Bioenergy has a process in place of using returnable and reusable big bag packaging, whereas Fertilizers Area has not as yet implemented a similar packaging process. Food & Ingredients Area has a cooking oil collection system in place, but the number of partnerships related to this needs to be expanded so that the recycling of cooking oil can achieve adequate scale.

  • Healthy diets: the company's processes of product research and development do deal with the subject of healthiness, but it lacks clear goals and objectives needed to expand the range of such products. Bunge should focus on responsible communication in terms of information and labeling, paying special attention to oils with nutritional additives. The materiality matrix suggests that the subject of "genetically modified organisms" is high on the list of stakeholder interest, which is why it is important that Bunge make its position clear in relation to the use, labeling and impact on the health of consumers of such products. It is stressed the importance of providing new product options focusing on healthiness (low fat, sugar and salt content) with clear and appropriate information on the packaging, labeling and in all the company's other communication channels.

3. Responsiveness – relates to initiatives adopted by the organization in response to specific demands of stakeholders.

  • The report lists the goals that were achieved during the period, but it does not show the continuity of such goals or medium and long term future goals. Thus, it is important for the company to clearly state and outline its strategic priorities, challenges, impacts, future risks and objectives in relation to sustainability.

  • There is a tendency in the publication towards providing more in the way of favorable information, and the report fails to maintain an equal balance between the positive and the negative, even though it does report some negative events on an ad hoc basis.

  • Socioenvironmental management continues to be integrated into Bunge Brasil's business areas through the use of working groups, focused on environment, health and safety. These groups have sought to work on aligning concepts and ways of measuring sustainability indicators, however, some of these concepts have still not been standardized throughout the company's different business areas. 101

  • During 2011, certain changes took place in the internal organizational structure and in the workforce structure, which left the monitoring of information fragmented and liable to errors. The company should set up a systematic and reliable process for collecting socioenvironmental data. This data is presently sent to the sustainability area in a variety of different formats during the process of consolidation (e-mails, spreadsheets without formulae or calculation memory).

  • The report's socioenvironmental indicators have included data from the Sugar & Bioenergy business. However, the information provided in the report, such as indicators on energy, waste and health & safety, does not as yet include data from all the sugarcane plants.

  • The report introduced the new Biodiversity and Land Use Policy that deals with socioenvironmental issues of vital importance to the sector, including those related to the supply chain and biodiversity. For the next cycle, we would recommend that the report include the company's plans and goals in relation to implementing the policy in its procedures and practices, applied to each business area individually.

GRI-G3 Application Level

As per the guidelines set down by the GRI-G3, BSD declares that the Bunge 2012 Sustainability Report is classified as A+ Application Level. The report offers all the necessary information relating to the company's profile and provides a description of its management processes and approaches to sustainability. It also supplies information regarding all the categories of performance indicators: economic, environmental, human rights, labor practices, society and product responsibility. Room for improvement was noted in relation to the reporting of strategy and analysis profiles (1.1and 1.2), n corporate governance and engagement (4.4, 4.6, 4.10, 4.11, 4.15 and 4.17). Related to management approach and performance indicators, there is scope for improvement in the provision of the environmental, social and sector supplement information (e.g.: biodiversity, transportation impacts, human rights in the value chain, certified purchases and communication about products to clients and costumers). The indicators regarding animal well-being in the sector supplement do not apply to Bunge's operations.

Final Considerations

In BSD Consulting's opinion, Bunge is indeed seeking to consolidate its sustainability management through the implementation of specific initiatives that are aligned to its Sustainability Platform. We would like to highlight the need for the company to forge ahead with the implementation of sustainability- based initiatives throughout its businesses, its support areas and its operational units, while at the same time improving its engagement with its external stakeholders.

São Paulo, July 24, 2012



BSD Consulting - Brasil

 
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BUSCA
Compromisso com o Brasil. Do campo à mesa.
Ícones Sustentabilidade
Representam as dimensões Social,
Ambiental e Econômica das ações
e projetos da Companhia no País.
Saiba mais sobre a Plataforma de
Sustentabilidade Bunge Brasil em
www.bunge.com.br/sustentabilidade.
A Plataforma de
Sustentabilidade é um
esforço global da Bunge
para que o desempenho
nos negócios seja
aprimorado em quatro
frentes principais
Agricultura Sustentável A Bunge está empenhada em sensibilizar e capacitar os produtores rurais para que produzam de modo a diminuir os impactos ambientais e maximizem a eficiência no uso dos recursos naturais finitos.
A Plataforma de
Sustentabilidade é um
esforço global da Bunge
para que o desempenho
nos negócios seja
aprimorado em quatro
frentes principais
Mudanças Climáticas Podem trazer impactos significativos para
a produção de alimentos em todo o
Mundo. Por isso, a Bunge considera
esse um fator-chave para as análises
em Sustentabilidade.
A Plataforma de
Sustentabilidade é um
esforço global da Bunge
para que o desempenho
nos negócios seja
aprimorado em quatro
frentes principais
Dietas Saudáveis Oferta de produtos alimentícios seguros e benéficos à saúde. A Bunge trabalha para identificar as necessidades dos clientes e consumidores e disponibilizar alimentos cada vez melhores no mercado.
A Plataforma de
Sustentabilidade é um
esforço global da Bunge
para que o desempenho
nos negócios seja
aprimorado em quatro
frentes principais
Redução de Resíduos Desenvolvimento de mecanismos e processos para a redução nos processos industriais e ampliação do uso racional da água e outros recursos não renováveis no gerenciamento da eficiência operacional.