material to retailers (distribution channels), which in turn should return them to manufacturers for final disposal.

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2 INPEV 7 inpev G4-3, 4, 5, 6 e 7 The Institute coordinates the environmentally correct disposal of empty post-consumption crop protection packages throughout Brazil with the best governance practices IN THIS CHAPTER Personnel management Corporate governance Financial management and administration The National Institute for Processing Empty Packages (inpev - Instituto Nacional de Processamento de Embalagens Vazias) is a non-profit organization created by crop protection manufacturers. One hundred companies and nine entities representative of the sector comprise the organization. The creation of the Institute was a response to Federal Law nr /2000, which instituted the concept of shared responsibilities in the correct disposal of postconsumption crop protection packages, whereby farmers became responsible for returning such material to retailers (distribution channels), which in turn should return them to manufacturers for final disposal. In order to put into practice this reverse logistics system, inpev acts as an intelligence nucleus of the Campo Limpo System (SCL) and articulates all links in the chain to correctly dispose of packages in a definite fashion. SCL has 415 receiving units (central stations or outposts), located in 25 states of the country and in the Federal District. In order to reach the most remote locations and increase the adhesion of small farmers, it also offers itinerant collections, which mainly cover locations where production dynamics do not justify the upkeep of a fixed infrastructure (more about SCL on page 16). G4-8 Participants of the DNCL celebration in Ponta Grossa (PR) BECOME A MEMBER Manufacturers or companies that commercialize products registered by the Ministry of Agriculture, Cattle and Supply (Mapa), in accordance with Federal Law Nr /89, may become members of inpev. In order to learn more about us, visit our website at

3 2014 Sustainability Report 8 Personnel management G4-DMA By the end of 2014, 63 professionals (59 in-house employees and 4 third-party) were part of the inpev team, including the administrative headquarters in São Paulo, the regional Operational coordination offices and two central stations that the Institute maintains as part of the Campo Limpo System: Rondonópolis (MT) and Taubaté (SP). G professional are part of the inpev team The team consists mostly of males (58.7%), who occupy 62.5% of leadership roles (directors, managers, leaders and coordinators). Around 64% of collaborators are stationed in the Southeast Region and 29% in the Mid-West. Of the four third-party collaborators, three are in the Southeast while one in the Midwest. Except for interns and apprentices, all labor contracts are full-time for an indefinite period of time. (For further information, please see page 48.) G4-10 People management stimulates professional growth and focus on results. In order to guide collaborator development, the Institute promoted more than 2,000 hours of training in 2014, with an average of 32.6 hours per professional.. G4-LA9 With the intent of reinforcing the commitment of its professionals with organizational results, the Results Agreement and Performance Evaluation (ADCR) was consolidated in 2014, which established a follow-up routine for individual growth per area of activity and for the organization as a whole. The ADCR, which is measured on a quarterly basis, guides professional activities and allows for quick path adjustments. Objectives attainment determines the variable compensation of professionals. ADCR is applied to all in-house collaborators with the exception of central station operators managed by inpev, whose performance will be measured using a specific tool starting in Mission G4-56 Contribute towards preserving the environment and the Campo Limpo System, by means of self-sustainable management of the final disposal of empty packages of plant health products and by providing services in the solid waste area, with the involvement and integration of all links of the agricultural productive chain. Vision Be acknowledged worldwide as a center of excellence in the final disposal of empty plant health packages and a reference in providing services in the solid waste and self-sustainable area in Brazil. Values and principles Integrating attitude Innovation Integrity Socio-environmental responsibility Safety

4 INPEV 9 In order to stimulate professional growth of its collaborators, inpev held an average of 32.6 hours of training per collaborator in 2014 NUMBER OF COLLABORATORS (%) WOMEN 41 LEADERSHIP (%) MEN 59 HEALTH In order to promote wellbeing and preventive actions, inpev reinforced, in 2014, the Mais Saúde [More Health] program, which encourages a healthy diet and physical activities. Throughout the year, talks and periodic bulletins developed awareness among staff regarding these topics. HIRING AND BENEFITS All inpev collaborators are hired with work agreements in accordance with Brazil s Consolidated Labor Laws (CLT Consolidação das Leis do Trabalho) and workers are benefited by collective bargaining negotiated with the local São Paulo and Rondonópolis labor unions. G4-11 Among the benefits provided are meal vouchers, transportation vouchers, life insurance, health and dental plans, incapacity/invalidity coverage, reimbursement of physical activities (except for operators of the receiving central stations) and maternity/paternity leaves. WOMEN 37 MEN 63

5 2014 Sustainability Report 10 Renato Santos, manager of the Rondonópolis (MT) central receiving station: processes and information management in the field AVERAGE 2014 TRAINING (h) G4-LA9 Men Women Total Directors 50 N/A 50 Managers Leaders/coordination Technicians/supervisors N/A Administrative Operational 29 N/A 29 Third Parties Apprentices Interns 0 N/A 0 Total N/A: not applicable. used when there are no collaborators of that gender type at a given level.

6 INPEV 11 Corporate governance G4-34 Since its foundation, inpev employs the best practices in the market, with a management model based on strict auditing and control standards. As part of its transparency commitment towards associated companies and entities and other links of the chain, the institute discloses the result of its activities and operations on an annual basis in accordance with Brazilian accounting principles, according to the guidelines of external auditors and with the opinion of its Fiscal Counsel. Its General Assembly is the most important forum within its decision-making structure. Formed by all present members, it is held once a year to validate mid- and long-term strategic guidelines and approve economic and operational statements. The Board of Directors is formed by 13 full members - five representatives of the contributing partners (elected during a General Assembly) and eight representatives of the member entities (collaborating members). Its role is to define the guidelines to ensure fulfillment of the bylaws. Besides this, it certifies that all laws are fulfilled, that assets are protected and a close relationship with all links in the chain is maintained, among other roles. Day-by-day management of the Institute befalls upon the Executive Committee, presided by the presiding director, who is an independent professional (without any bond to member companies) nominated by the Board of Directors. Its structure is complemented with the activities of the Fiscal Counsel, which is formed by three members (among contributing members) elected during the General Assembly and supports and supervises other governance instances. 13 contributing members and collaborating members form the Board of Directors BOARD OF DIRECTORS (CONTRIBUTING PARTNERS) Basf S.A. Marcelo Maniero Ismael (president) Francisco Verza Du Pont do Brasil S.A. Marcelo Okamura (vice-president) José Donizeti Vilhena Monsanto do Brasil Ltda. Luciano Fonseca Saul Scatolini Duarte Nufarm Indústria Química e Farmacêutica S.A. Luis Henrique Sanfelice Rahmeier Gilberto Bento Schiavinato Syngenta Proteção de Cultivo S.A. Leandro Conti José Roberto Pelaquim

7 2014 Sustainability Report companies and 9 associations form inpev MEMBER COMPANIES Action S.A. Adama Brasil AS ADM do Brasil Ltda. Agecom Produtos de Petróleo Ltda. Agro Import do Brasil Ltda. Agrocete Indústria de Fertilizantes Ltda. Agrovant Comércio de Produtos Agrícolas Ltda. Allierbrasil Agronomia Ltda. Allvet Química Industrial Ltda. Alta América Latina Tecnologia Agrícola Ltda. Ameribrás Indústria e Comércio Ltda. Amvac do Brasil Representações Ltda. Anasac Brasil Comércio e Locação de Máquinas Ltda. Arysta Lifescience do Brasil Indústria Química e Agropecuária Ltda. Atanor do Brasil Ltda. Atar do Brasil Defensivos Agrícolas Ltda. Atta-Kill Indústria e Comércio de Defensivos Agrícolas Ltda. Ballagro Agro Tecnologia Ltda. Basf Agricultural Specialties Ltda. Basf S.A. Bayer S.A. Bernardo Química S.A. Bio Controle Métodos de Controle de Pragas Ltda. Bio Soja Indústrias Químicas e Biológicas Ltda. Biocontrol Sistema de Controle Biológico Ltda. Biotech Controle Biológico Ltda. BRA Defensivos Agrícolas Ltda. CCAB Agro S.A. Cheminova Brasil Ltda. Chemotécnica do Brasil Ltda. Chemtra Comercial, Importação e Exportação Ltda. Comércio e Indústria Matsuda Importadora e Exportadora Ltda. Consagro Agroquímica Ltda. Cropchem Ltda. Cross Link Consultoria e Comércio Ltda. De Sangosse L.A. Ltda. Degesch do Brasil Indústria e Comércio Ltda. Dinagro Agropecuária Ltda. Dow Agrosciences Industrial Ltda. Du Pont do Brasil S.A. Enro Industrial Ltda. Evonik Degussa Brasil Ltda. Fênix Agro Pecus Industrial Ltda. FMC Química do Brasil Ltda. Fort Dodge Saúde Animal Ltda. Funguran Giulini Ltda. Genbra Distribuidora de Produtos Agrícolas Ltda. Helm do Brasil Mercantil Ltda.

8 INPEV 13 Iharabrás S.A. Indústrias Químicas Indústria Química Dipil Ltda. Inquima Ltda. Irrigações Dias Cruz Ltda. Isagro Brasil Comércio de Produtos Agroquímicos Ltda. Isca Tecnologias Ltda. Koppert do Brasil Holding Ltda. Koppert do Brasil Sistemas Biológicos Ltda. Laboratório de Biocontrole Farroupilha Ltda. Lanxess Indústria de Produtos Químicos e Plásticos Ltda. Luxembourg Brasil Comércio de Produtos Químicos Ltda. Macdermid Agricultural Solutions Comércio de Produtos Agrícolas Ltda. Macroseeds Indústria e Comércio de Insumos Agrícolas Ltda. Microquímica Indústrias Químicas Ltda. Microsal Indústria e Comércio Ltda. Momentive Performance Materials Indústria de Silicones Ltda. Monsanto do Brasil Ltda. Morsoletto Santos e Vicente Cano Ltda. Nortox S.A. Novozymes Bioag Produtos para Agricultura Ltda. Nufarm Indústria Química e Farmacêutica S.A. Ouro Fino Química Ltda. Oxiquímica Agrociência Ltda. Petrobrás Distribuidora S.A. Pilarquim BR Comercial Ltda. Plato do Brasil Comércio Ltda. Poland Química Ltda. Prentiss Química Ltda. Produtos Químicos São Vicente Ltda. Prophyto Comércio e Serviços Ltda. PRTrade Tecnologia e Indústria Química e Farmacêutica Ltda. Reccol Comercial Importação Exportação Ltda. Rohm and Haas Química Ltda. Rotam do Brasil Agroquímica e Produtos Agrícolas Ltda. Sabero Organics América S.A. Samaritá Indústria e Comércio Ltda. Sharda do Brasil Comércio de Produtos Químicos e Agroquímicos Ltda. Simbiose Indústria e Comércio de Fertilizantes e Insumos Microbiológicos Ltda. Sinon do Brasil Ltda. Sipcam Nichino Brasil S.A. Stockton Agrimor do Brasil Stoller do Brasil Ltda. Sumitomo Chemical do Brasil Representações Ltda. Syngenta Proteção de Cultivos S.A. Taminco do Brasil Produtos Químicos Ltda. Total Lubrificantes do Brasil Ltda. Unibrás Agroquímica Ltda. Union Agro Ltda. United Phosphorus do Brasil Ltda. UPL do Brasil Indústria e Comércio de Insumos Agropecuários S.A. VectorControl Indústria e Comércio de Produtos Agropecuários Ltda. W. Neudorff Serviços de Agricultura do Brasil Ltda. MEMBER ENTITIES Abag Associação Brasileira do Agronegócio Aenda Associação Brasileira dos Defensivos Genéricos Andav Associação Nacional dos Distribuidores de Insumos Agrícolas e Veterinários Andef Associação Nacional de Defesa Vegetal APPS Associação Paulista dos Produtores de Sementes e Mudas Aprosoja Associação Brasileira dos Produtores de Soja CNA Confederação da Agricultura e Pecuária do Brasil OCB Organização das Cooperativas Brasileiras Sindiveg Sindicato Nacional da Indústria de Produtos para Defesa Vegetal

9 2014 Sustainability Report 14 Financial management and administration G4-DMA In order to execute the broad dynamics of reverse logistics of the Campo Limpo System, inpev uses different types of resources, which are managed to ensure greater operational efficiency. Most of the Institute s revenues come from contributions made by member companies while the rest comes from accreditation fees from SCL partnering recyclers, from fees charged to cover costs of receiving units and from the lease of the Campo Limpo Reciclagem e Transformação de Plásticos. By abiding by a consistent financial consolidation pathway, inpev has progressively been reducing the participation percentage coming from corporate contributions. In 2013 they represented 56% and in %. inpev is a private non-profit company formed by non-remunerated members. All added value is reinvested within the System ADDED VALUE STATEMENT (R$ x1,000) G4-9 e EC , Revenue 1 89, , , , Inputs acquired from third parties 67, , , , Gross added value (1-2) 21, , , , Withholdings 4, , , , Net added value produced (3-4) 17, , , , Transfered added value received 1, , , , Total added value to be distributed (5+6) 18, , , Collaborators (wages, benefits and encumbrances) 9, , , Government (taxes, encumbrances and contributions) 2, , , Withheld profit/loss during the period (5,878.00) 5, (1,676.44) Remuneration of third-party capital (interest and leases) Accumulated added value (1,391.00) 1, , Includes the reversal of provisions, rental Cofins and non-operational expenditures.

10 ECONOMIC-FINANCIAL PERFORMANCE (R$ MILLION) INPEV Total assets Total resources that finance the program (inpev + chain links) accumulated since Operational revenue Member contributions Accreditation fee Campo Limpo Lease Net Equity Net indebtedness Of the total, 51% come for member contributions. 2 Paid by recyclers for sending the packages and for the technical cooperation with inpev. 3 Rent paid by the Campo Limpo Plastic Transformation and Recycling to inpev. MONITORING AND RESULTS By means of a KPI panel, inpev monitors its performance regarding its main managerial aspects on a monthly basis. The tool allows managers to follow performance over time and adopt changes quickly PERFORMANCE MONITORING Overall performance Cost per kg (excluding projects area) Cost per kg (total) inpev budget (excluding projects area) inpev budget (total) Final destination Total disposed packages (of Coex in kg) Total disposed packages Total recycled packages Total disposed packages (of Mono Hdpe in kg) Media exposure (clippings) Weight shipped per truck jan. feb. mar. apr. may. jun. jul. aug. sep. oct. nov. dec. total EXCEEDED PERFORMED PERFORMED, YET CLOSE TO THE LIMIT BELOW THE ESTIMATED