diseÑo memoria-1 copy · agrolÍbano sustainability report 2 healthy melons improving lives! 2016...

www.agrolibano.comHEALTHY MELONS IMPROVING LIVES!

Agrolíbano

A g r o l í b a n o

S u s t a i n a b i l i t y R e p o r t 2 0 1 8

2A G R O L Í B A N O S U S T A I N A B I L I T Y R E P O R T

Healthy melons improving lives!

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Scope and coverage102-01, 02,03,04,05, 46, 48,52,53,54

Agrolíbano is a Honduran company located in San Lorenzo, Valle. This is our second Sustainability Report, which was verified by the Honduran Foundation of Corporate Social Responsibility FUNDAHRSE according to the standard GRI version in the Exhaustive modality and validated with the GRI 303 CDP water supplement, the United Nations Sustainable Development Goals and the IS0 26000 Standard. The report covers the period August 2016 - July 2018 and must be presented biennially. Your questions can be made to Pamela Molina in the email [email protected] and follow us on our website: www.agrolibano.com.

Table of Contents• Scope and coverage• Message from the President of Agrolíbano• Impacts• Business Model• Materiality

The Strategic Management of Agrolíbano and the SDGsEconomic dimensionSocial dimensionEnvironmental dimension

• AnnexesVerification letterVerification matrix

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Message from the President of Agrolibano102-12, 13,14,15

Humanity faces great challenges that are vital to the existence of our species, but also of much of the nature we know today. From Agrolíbano's perspective, among the biggest challenges are poverty and climate change, these are visible, but there is an intangible determinant to face these challenges: the mental model is perhaps the biggest challenge we face, but also the one that you can open up to new strategies to contribute to sustainability.

Agrolíbano has been characterized by strengthening the challenges that after 40 years of history have not been few, our company is transcending from success to meaning, implementing strategies that lead our operations to be Carbon Neutral in the future, to make a sustainable management of water reducing the extraction, to contribute to the sanitation of soils so that they continue transferring healthy energy to our food, and above all, contributing to the human development of the populations in the southern area of our beloved Honduras.

We are aware that we are part of a system in which in addition to our natural environment are the populations of the communities where we operate and the families of our employees. This system must have a balance and one of the bases of this balance is in the Give and Receive. Agrolíbano receives a lot through its collaborators, from a safe environment and positive recognition in the communities. Therefore, we strive to do our best in each area of management, so we have undertaken a route that will lead us to contribute to the reduction of multidimensional poverty. This route is defined by the Sustainable Development Goals to which we are aligning our operations and our relationship with the community.

A G R O L Í B A N O S U S T A I N A B I L I T Y R E P O R T


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IMPACTS 102-7, 401-1

No. of permanent jobs: 260No. of temporary jobs: 5,328The female population hired between 2015-18 and 38% to 47%$23,489,558 were paid as salary in the last 2 years.No. of suppliers: 383, of which 249 are Local and 134 internationals$38,211,508 were paid to local suppliers in the last 2 yearsContribution to GDP 2018: 0.11% Contribution to agricultural GDP 2018: 1 %Approximately 4,000 containers transported annually an average of 83,630 tons of melon export40 countries in 3 continents are part of our value chain$2,165,417 of Social Investment in 19 communities through the Agrolíbano Foundation in the last 4 years$ 12,954,123 of global social investment in the last 4 years (17% own funds and 83% managed with allies)Reduced consumption of water extracted from the increase of water harvested by 10%.61,000 trees planted between 2015-18The replacement of fossil fuel energy by solar energy has begun, replacing 16.2% of the energy consumed in the company's central office and microbiological production laboratories.13 international and national certifications




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Business Model102-17,18,19,20,22,23,24,26,27,28,30,31, 46, 51-405-1

Agrolíbano focuses its business model on the vision, mission and values, which follows a management model derived from legal ethical compliance until the integration of a set of fully accepted norms and standards.

ValuesHaving a heart of melon is a commitment, a discipline.

It means working with the PURPOSE of ¨Providing safe, healthy and delicious melons to consumers which in return will generate prosperity and progress¨

Do it with EXCELLENCE, evaluating the performance to measure the progress.

WORKING AS A TEAM with humility, responsibility, leadership and respect to meet the requests and requirements of our customers. They are our reason for being; therefore, we must listen with EMPATHY to understand their concerns and issues. From understanding to action, through a CONTINUOUS IMPROVEMENT were perseverance, innovation and creativity are key.

Finally it means, doing it with INTEGRITY, in the relationships with our employees and their families, business partners, and the communities where we operate and with nature.

Many changes and challenges will come, but while we are loyal to this commitment in everything we do and where ever we go, our projects will endure.

MissionSatisfy and delight our customers and global consumers with healthy fruits to improve lives.

VisionTo be recognized as the most reliable fruit supplier in the world with an excellent service.

Certifications

GSI

PTI

Under the Guide of

StandardsGRI

Recognitions

Socially ResponsibleCompany

WAITROSE Sustainability Award 2018 Highly Commended

Marks & Spencer Farming for the Future Awards – M&S Overseas Winner for 2017

Orchid Business Presidential Award 2018

Alignments

Sustainable DevelopmentGoals

NationalAgenda 2030

Global Pact

AGENDANACIONAL

2030


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Materiality102-2,29,31,42,43,46, 47

Materiality constitutes the central principle of the Sustainability Reports and refers to issues where interested parties have agreed on their perceptions and expectations. On this occasion Agrolíbano has integrated its expectations with the guidelines of the 2030 National Agenda of the State of Honduras. (Sept. 28th, 2018).

Materiality in Agrolíbano was constructed by the four phases expressing the Global Reporting Initiative such as: Identification, Prioritization, Validation and Revision

Identification:At this stage Agrolibano accepts the principle of materiality as "address issues that reflect significant economic, environmental and social effects of the organization or that substantially influence the assessments of groups of interest” - GRI (2013) Manual of Basic Principles pg.14 - and in its sustainability model four major commitments are present.

Prioritization:Based on the consultations with its stakeholders, a materiality matrix was developed on the SDGs proposed by the National Agenda of the country and those selected by the Agrolíbano directive and executive team.

Validation:By selecting the main issues that coincide between the stakeholders and the company, it is possible to identify the material issues that belong to each dimension of sustainable development and that are associated with the GRI content and the SDGs selected by Agrolíbano and which are analyzed in the subsequent pages.

Revision:The process of reviewing material issues and their internal validation will be done by assigning the main practices that Agrolíbano will be developing in its sustainability management.

Economic Value.Goal 8.1, 8.2, 8.3,

8.7, 8.8201-1

413-1

303-1, 303-2, 303-3

New MarketsGoal 17.11

Multidimensional Poverty Index

Goal 1.1, 1.2, 1.5, 1.a

Child nutritionGoal 2.2

Healthy family, safe motherhood and

child healthGoal 3.2

LiteracyGoal 4.6

Sustainable agriculture

Goal 2.4, 2.a

Sustainable Management of WaterGoal 6.1, 6.2, 6.4, 6.6,

6.a, 6.b

AGENDANACIONAL

2030

MaterialIssues

2030 NationalAgenda Agrolíbano SDG GRI Standard

SocialDimension

Environmentaldimension

EconomicDimension

SDG 8Decent work and

economic growth

SDG 1End of Poverty

SDG 2Zero hunger and

nutrition improvement

SDG 3Health & Wellness

SDG 4Quality Education

SDG 3Zero hunger and

sustainable agriculture

SDG 6Clean Water

and Sanitation

SDG 17Partnerships to achieve

the objectives

Under the guidance of GRI

Standards


STEP 1IDENTIFICATION

STEP 2PRIORIZATION

STEP 3VALIDATION

STEP 1REVIEW

Context ofsustainability

Participation of interest groups

Sustainability context Participation ofinterest groups

ThoroughnessMateriality

MEMORY

topic Aspects Information on the management approach + Indicators



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The Strategic Management of Agrolibano and the SDGsDMA 205-1.205-2, 205-3,206-1

Based on its business model, Agrolíbano has accepted the Sustainable Development Goals 2030 Agenda and its integration into the 2030 National Agenda of Honduras. For it Agrolíbano has separated the SDG in the dimensions of sustainable development. However, due to the integrality and interdependence of the SDGs, some draw more than one dimension, for example: SDG 1 in the economic and social, SDG 12 in the economic and environmental, SDG 6 in the social and environmental, etc.

Agrolíbano on behalf of the Honduran private company, has participated in the United Nations forum to learn about the progress towards the SDGs, as well as at the VIII Summit of the Americas, where the thematic axes were: Democratic governance and corruption; Corruption and sustainable development; and Aspects of cooperation, international institutions and public-private partnerships. In Agrolíbano, 75 people from senior management and intermediate management officials have been trained to learn more about the SDGs and analyze the alignment of the business with them.

SDGs 16 and 17 constitute cross-cutting elements of Agrolíbano's strategy and in that sense the organization has made significant progress.

In compliance with Objective 16, which seeks to promote peaceful and inclusive societies for sustainable development, facilitate access to justice for all and create effective, responsible and inclusive institutions at all levels, Agrolíbano, from the Executive Presidency, expresses the commitment to ensure compliance with the highest legal and ethical standards in our commercial, administrative and logistic operations. The Board of Directors has established a policy of anti-corruption and bribery, which guides us in all areas in which we operate. Therefore we have to demonstrate integrity and honesty in all our actions, since bribery, extortion and corruption affect the companies in which these acts are committed and impede their growth and development, but also the development of society as a whole. (Goal 16.5)

Our Code of Ethics, Human Rights Policy and Labor Policies prohibit child labor and any violation of the rights of children. (Goal 16. 2) In addition to preventing corruption and bribery practices in all its forms, Agrolibano establishes guidelines for a responsible and transparent relationship with communities.

Transparency traces all the processes of our company, being a guide for our actions for the authorities, our customers, our suppliers, other stakeholders and especially for ourselves. In relation to our clients, in Agrolíbano we have a high commitment to market our product portfolio in a complete and transparent way, complying with all the local and international norms and laws of the different markets we serve. (Goal 16.6)

Public access to Social Investment information is guaranteed, as well as relevant events through the website, social networks and media. (Goal 16.10)

The Fair Operational Practices Policy is attached to respect for human rights, and it is through which Agrolíbano establishes the guidelines to conduct their relationships honestly and without the use of

SDG 16.1, 16.2, 16.5, 16.6, 16.7, 16.10 17.1, 17.3, 17.11, 17.7, 17.8, 17.14, 17.18, 17.19

corruption practices, acts of bribery or extortion to gain an unfair advantage.

In the relationship with the community, from a focus on human rights, gender and generational equity, we promote a culture of peace with which we contribute to the reduction of different forms of violence and their consequences. (Goal 16.1) In compliance with the commitment assumed in the previous sustainability report, we carry out actions to promote human rights in the company and neighboring communities.


Economic Dimension Social Dimension Environmental Dimension SDG 8. Decent work and economic growth

SDG 2 Zero Hunger SDG 13. Climate change

SDG12. Responsible production and consumption

SDG 3. Health and well-being SDG 6 Clean water and sanitation

SDG 9 Industry, Innovation and infrastructure

SDG 4 Quality Education SDG 14 Life below water

SDG 11 Sustainable cities and communities

SDG 10. Reduced inequalities SDG 15. Life on land

SDG 1. No poverty SDG 5. Gender Equality SDG 7. Affordable and clean energy

SDG 16: Peace, Justice and strong institutions SDG 17 Partnerships for the goals

In compliance with Objective 16, which seeks to promote peaceful and inclusive societies for sustainable development, facilitate access to justice for all and create effective, responsible and inclusive institutions at all levels, Agrolíbano, from the Executive Presidency, expresses the commitment to ensure compliance with the highest legal and ethical standards in our commercial, administrative and logistic operations. The Board of Directors has established a policy of anti-corruption and bribery, which guides us in all areas in which we operate. Therefore we have to demonstrate integrity and honesty in all our actions, since bribery, extortion and corruption affect the companies in which these acts are committed and impede their growth and development, but also the development of society as a whole. (Goal 16.5)

Our Code of Ethics, Human Rights Policy and Labor Policies prohibit child labor and any violation of the rights of children. (Goal 16. 2) In addition to preventing corruption and bribery practices in all its forms, Agrolibano establishes guidelines for a responsible and transparent relationship with communities.

Transparency traces all the processes of our company, being a guide for our actions for the authorities, our customers, our suppliers, other stakeholders and especially for ourselves. In relation to our clients, in Agrolíbano we have a high commitment to market our product portfolio in a complete and transparent way, complying with all the local and international norms and laws of the different markets we serve. (Goal 16.6)

Public access to Social Investment information is guaranteed, as well as relevant events through the website, social networks and media. (Goal 16.10)

The Fair Operational Practices Policy is attached to respect for human rights, and it is through which Agrolíbano establishes the guidelines to conduct their relationships honestly and without the use of

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corruption practices, acts of bribery or extortion to gain an unfair advantage.

In the relationship with the community, from a focus on human rights, gender and generational equity, we promote a culture of peace with which we contribute to the reduction of different forms of violence and their consequences. (Goal 16.1) In compliance with the commitment assumed in the previous sustainability report, we carry out actions to promote human rights in the company and neighboring communities.

Through a strategy of strengthening community participation for development management, in the communities the population has been accompanied in the elaboration of Community Development Plans, which are elaborated in a participatory, inclusive and representative manner of all population sectors. The development of 14 community development plans, which constitute a management tool for neighboring communities, has been achieved. (Goal 16.7)

Objective 17 seeks to strengthen the means of execution and revitalize the Global Alliance for Sustainable Development. In that sense, Agrolíbano as an exporting company, generates foreign exchange contributing 1% of agricultural GDP of the country, also it contributes to internal resources for development with 4% of the economic value paid as taxes. (Goal 1 7.1)

From our commercial relations in the last two years the market has expanded to Japan and Taiwan, being already present in more than 40 countries on 3 continents. (Goal 17.11) The opening of new markets and the sustainability of the existing ones goes through compliance with strict standards in agricultural production practices, manufacturing, quality control and sustainable socio-environmental development. Agrolibano certifies its products under international regulations and undertakes to present when required, all current certificates, for all the quality certifications that it possesses, at the same time educating and promoting with the commercial partners the scope of socio-economic and environmental benefits when they choose our products.

Through commercial alliances with our clients, we establish cooperation ties and channel donations that are subsequently managed by Agrolíbano Foundation in Education, Health and Community Development projects. From the Agrolíbano Foundation, this objective is also contributed by carrying out management for the mobilization of financial resources from multiple sources, national and international for the development of the communities of the southern zone, we have managed to channel funds for the execution of projects with financing from the People and government of Japan. We establish alliances with non-governmental organizations of national and international origin and promote private cooperation for development with companies present in the area. (Goal 17.3)

Also at national level, in public-private partnerships with State institutions such as the Ministry of Development and Social Inclusion, IDECOAS-FHIS, SAG-DICTA; We have agreements with the Ministry of Health and the Ministry of Education, promoting participation in public-private and civil society alliances to contribute to local and national development. (Goal 17.17)

Peace Culture

2 Campaigns to promote human rights directed to community organizations: employers, rural boxes, water boards, health committees, educating mothers, religious leaders, agricultural producers and the educational community.

245 Leaders of the communities reached with the divulgation of human rights

18 Members of the Agrolíbano Foundation team trained in Human Rights and Children's Rights

20 Members of the Management Committee and Board of Directors reached with a workshop on Human Rights



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The development of ecologically sound technologies is implemented through our AGROCIBI Biocontrollers Center, where we produce biological material that replaces the use of chemicals in melon cultivation. (Goal 17.7)

In compliance to one of the commitments in the previous report, at Community level it has been managed and facilitated conditions for bringing the Internet to rural schools, making installation service at 11 schools, with improved bandwidth in 5 of them, so which has made it possible to plan information access projects to strengthen life skills for adolescents and young people. (Goal 17.8 and 9.c)

We also contribute to the generation of detailed information about the 19 neighboring communities at our operations centers, based on field research. (Goal 17.18) The following studies were carried out:

2 baseline measurements (2014 and 2018) 1 MPI study– Multidimensional Poverty Index 2018

We perform accountability to all stakeholders every year, both funds invested, and the results obtained, for this we have a monitoring system based on 29 indicators that are measured with evidence-based information and external evaluations. (Goal 17.19)

Financial audits of all invested funds are carried out annually. In the period 2014 - 2018, 2 program evaluations were carried out by external entities. We base alliances with multiple actors on the transparency of our management.

All the institutional policies of the company have been updated considering the alignment with the SDGs, thereby improving the institutional regulatory coherence with the path for sustainable development. (Goal 17.14)



Partnerships for Development

108 Alliances with national and international entities from various sectors (government, non-governmental, private cooperation, external cooperation)

95 Projects managed with allies

L 12,945,123 Global social investment in development actions in the communities in the last 4 years

83% Of social investment funds managed with allies

L 2,165,417 Contributed by Agrolíbano in the last 4 years as private cooperation for development

Mobilization of funds from various sources2014-2018

Execution Period Total Investment USD

Source of funds Agrolíbano Allies

USD % USD % 2014-2015 $3,229,163 $621,096 19% $2,608,067 81% 2015-2016 $2,862,318 $549,999 19% $2,312,319 81% 2016-2017 $4,216,166 $497,698 12% $3,718,468 88% 2017-2018 $2,646,476 $ 496,624 19% $2,149,852 81%

TOTAL $12,954,123 $2,165,417 17% $10,788,706 83%

A G R O L Í B A N OS U S T A I N A B I L I T Y

R E P O R T

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Healthy melonsimproving lives!

DIMENSIÓN ECONÓMICADIMENSION ECONOMIC

11A G R O L Í B A N O S U S T A I N A B I L I T Y R E P O R T


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The growth generated in productive areas provides greater employment opportunities for the population of the area. (Goal 8.2)

The increase in the productive area in the generation of employment has generated a growth of 30.7% in temporary employees between 2014 and 2018, who are provided with decent work and decent wages. (Goal 8.3) Our institutional policies and code of ethics emphasize non-discrimination based on sex, age or any other condition and women and men are guaranteed equal pay for work of equal value. (Goal 8.5)

The amount distributed in wages and benefits has consequently increased:

Contributing to Objective 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment, over the past three years there have been significant advances in the diversification of our markets, marking key milestones in the history of the company and of the country. In 2016 we started with melon exports to the market in Japan and a year later we managed to make our first export of melons to Taiwan, becoming the only melon company in America that supplies this market. (Goal 17.11)

The Economic Value of Agrolíbano represents the company's contribution to the Honduran economy. It is important to note that 58.6% is distributed in suppliers and about 25% of wealth is returned to employees, in addition, 4% of the economic value is delivered in payment of taxes. Agrolíbano contributes with 1% of the country's Agricultural GDP. (Goal 8.1)

ECONOMIC DIMENSIONDMA. 201-1, 02,03,04, 202-1,02,203-1,02,204-1308-1,02, 401-2, 402-1, 403-1, 02,03,04414-1.02

SDG 8.1, 8.2, 8.3, 8.5, 8.7, 8.8, 9.1, 9.3, 9.4, 9.5, 9.c, 11.1, 11.5, 11.a, 11.b, 12.1, 12.3, 12.4, 12.5, 12.6, 12.7, 12.8, 17.11

Suppliers

Salaries andsocia benefits

Social Investment

Partners

24.7%

11.4%

58.6%

1%

Creditors0.6%

GubernamentalTaxes

3.8%Distribution of theeconomic value

2017-2018

4,553

4,716

4,948 4,9485,000

4,600

4,800

4,400

4,2002015 2016 2017 2018

Hectares in Production

2014-2015

4,275Employees

2016-2017

5,479Employees

2015-2016

4,836Employees

2017-2018

5,588Employees

Jobs generated directly by Agrolibano

Payroll growth in Agrolíbano 2014-2018 (Dollars) $.10,421,760 Pay in payroll season 14-15 $.10,690,978 Pay in payroll season 15-16 $.11,486,791 Pay in payroll season 16-17 $.12,002,767 Pay in payroll season 17-18

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The value proposition is aligned with the new trends, diversifying our products according to the tastes and preferences of our customers in the different markets we serve. (Goal 8.2)

The company has an Internal Public Policy related to our most important asset: our employees, which is implemented through an efficient, comprehensive human management and generating the development of new capabilities, competencies and skills of the workforce, health and occupational safety, focused on compliance with labor legislation, human rights, international labor agreements such as the ILO. Our human management has been certified by the Rainforest Alliance, Fundahrse, Great Place to Work, Grasp of Global Gap, Audit of Ethical Commerce of Sedex Members (SMETA) and has also been audited by government institutions such as the Ministry of Labor and Social Welfare. (Goal 8.8)

Our policies prohibit child labor in all its forms, so that our operations do not hire minors. We also supervise our network of providers to ensure that this requirement is met. At the community level we promote access to formal and non-formal education for children and adolescents, contributing to the eradication of child labor. (Goal 8.7)

In the last two years we have delivered the fruit of our effort and dedication in 40 countries across 3 continents. Which translates into the sale of 167,260 tons of melons transported in more than 7,800 containers.

North America2,605 / 34%

Europe2,971 / 38%

Asia397.30 / 5%

Middle East341 / 4%

UK1,490/ 19% Fruit shipped

in containers



Export volume distribution by variety

Italian Yellow Hdew Galia White Hdew CantaloupePDS

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Brand and Service

Through the years Agrolíbano has managed to consolidate Mike´s Melons® as a world-recognized brand. It is through this brand that the entire range of melons is marketed in different market segments globally.

Agrolíbano is a company affiliated with the standard bar code system (GS1) that is the main institution that guarantees visibility in the global supply chain, so through the codes assigned to Agrolíbano by GS1 any consumer worldwide can find information and give traceability to our products. (G4-FP5, G4-PR1, G4 PR-3)

100% of the products sold under Mike´s Melons are labeled with unique identifiers of the GTIN Company, under the EAN / UCC coding standard.

85% of our products are labeled fruit to fruit, welcoming the Produce Traceability Initiative, this being the best practice in the industry.

3% of our melons are labeled with “display until”, which guarantees that our customers acquire melons with the highest degree of freshness.

Agrolíbano annually applies a Customer Satisfaction Survey and consolidates its results into a Satisfaction Index, used to find opportunities for improvement, which customers are viewing and requiring in our products and services.

The index evaluates the 3 critical areas of the business and that are of high importance to the customers:

1. Product Quality and Safety Measures compliance with your customer requirements with product specifications.

2. Logistics: Evaluates punctuality in deliveries, shipping service and other associated factors.

3. Customer service. It is based on customer satisfaction and after sales service. (G4-PR5).



Agropecuaria MontelíbanoSeason 2017-2018

Global Satisfaction Index

In order to empower suppliers and make them strategic partners, 8 suppliers were included in the second stage of the Supplier Development Program (SDP), with the following results. (Goal 8.3)

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Agrolíbano generates prosperity and one of the areas where there is more projection is the management of suppliers, since we are an instrument to transmit our values and fair operating practices under which we are governed.

During the last season, we bought from 383 different suppliers, 65% national suppliers, from which we acquired more than 455 million Lempiras, these national suppliers with different areas as: technology, services, raw materials, construction products, among others.

We dynamize the national economy, especially in the southern zone, promoting through our suppliers the creation of stable jobs.

Origin of suppliers

54%National

46%International

383Total suppliers

$ 28,333,857

$ 38,211,508

$ 66,545,364Total Purchase Values 2016-2018

134Nationalproviders

249Nationalproviders

• New service portfolios• New permanent jobs• Personnel trained in security measures.• Reduction in delivery times• Increase in sales• Improvement in the level of innovation in critical areas• Facilities improvements, including work and rest areas• Strengthened quality management with international standards• Strengthening internal relationships, internal communication and

customer communication• New service measurement system• Implementation of administration mechanism by results, organization

chart, planning documents, budgets and comprehensive scorecard• Continuous improvement mechanism implementation with customer

satisfaction survey, claims response and process registration• Increased storage capacity and control of merchandise and inventories• New controls and maintenance plans, reduce failures and costs• Modified roles and payment system• Improves the control and programming of purchases• Training, review of functions and performance measurement to its employees• Improvement of the internal leadership structure and decision making



With the support to entrepreneurship, we contribute to offset the need for income of some families of temporary employees, who have employment approximately half of the year, thus achieving the reduction of poverty levels according to income. (Goal 8.3)

Objective 12: seeks to guarantee sustainable modalities for consumption and production, in that orientation Agrolíbano has implemented mechanisms that contribute to the sustainable management and efficient use of natural resources, as well as responsible waste management. (Goal 12.1)

An agreement has been established for the management of all plastic waste with Argos Cements, ensuring a final disposal of all waste generated in production in a responsible manner and minimizing the environmental impact. (Goal 12.4)

A maintenance program for irrigation station was implemented to maximize the use of irrigation water by 5%.

To contribute to the sustainable management and efficient use of natural resources, the entire supply chain is evaluated:

Our wooden pallet suppliers have management plans for the forests where they work, as well as their environmental license, which details the logging limits they can reach. They are audited according to the guidelines of the ICF (Forest Conservation Institute). In order to avoid massive logging of forests, measures are established such as establishing minimum levels of waste between 1% and 2%. (Goal 12.7)

Likewise, the waste generated in sawmills is sold in a high percentage to the company Biomasa and another percentage is used by the same suppliers in the drying ovens.

As for the suppliers of cardboard sheets, they have paper recycling programs in all work areas and then transform them into paper plates to be sold to companies that recycle paper or transform it into another product. (Goal 12.5) We ensure through audits that their suppliers of raw materials come from sustainable sources duly verified and certified by international entities. (Goal 12.7)

From the relationship with the community, we contribute promoting the reduction of pollutants and the recycling of solid waste. (Goal 12.5)

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Suppliers are evaluated according to their degree of maturity, considering criteria for: price, quality, service and deliveries. The results in the 2017-2018 season are as follows:

We also contribute to this objective in the communities, promoting entrepreneurship and the participation of rural savings and credit funds in local economic dynamics.

ClaimsFlexibilityCustomer service

InnovationTechnical supportDeveloping

Price stabilityDiscountsCreditsBonus

Deliveries in quantityDeliveries on timeDocumentary delivery

Service

Quality

Price

Delivery

4.24.364.28

2.162.4

1.88

2.722.483.12

1.8

4.123.84

4.4

4.3

2.21

2.5

4.1

Documentary delivery

Deliveries on time

Deliveries in quantity

Bonus

Credits

Discounts Price stability

Developing

Technical support

Innovation

Customer service

Flexibility

Claims543210


Economic development in neighboring communities 15 Rural boxes working

640 Family members of rural savings banks (28% of total families in the area of influence)

$143,592 In assets belonging to the 15 rural savings banks

271 People participating in microenterprise training processes

96 Active ventures show sustainability factors (71% of the 136 implemented)


• Use of specialized equipment for measuring Brix grades in fruit by means of laser equipment that allows reading without splitting melons, which reduces food loss, waste and environmental impact.

• Construction of new dining rooms in the Apacilagua and El Porvenir farm, which allows improving the conditions for the well-being of employees and improving the solid waste management process. (Target 9.1)

• Implementation of a new cooling system in Santa Rosa packing machine to maximize the use of cold, reduce energy expenditure and make the fruit cooling process more efficient.

• More than $ 50,000 was invested in the improvement of our laboratory facilities that produce biological agents in the control of pests and diseases.

In the communities we invest our own resources and manage multi-stakeholder alliances through the implementation of projects that facilitate access to information and communication technology, bringing computer equipment and Internet to the educational centers of neighboring communities. (Goal 9.c)

• Use of drones in the detection of pests in the field, ensuring a better diagnosis and reducing pesticide use in the controls.

• Use of PCR in laboratories for disease detection, which allows to detect a disease before its symptoms are visible, allowing better controls and reduction in the use of pesticides, generating less environmental impact.

Objective 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation, Agrolíbano maintains a process of continuous improvement in its infrastructure and equipment, implementing innovations that allow it to meet market requirements, customer requirements and minimize the environmental impact generated in its processes. In the last year the following actions have been implemented: (Goal 9.5)

162 0 1 6 - 2 0 1 8

From our fields we export 69% of the production and 31% is donated to neighboring communities for consumption and to feed their livestock in the most critical months of the year, contributing to food security and the reduction of subsequent food losses to the harvest (Goal 12.3)

We share information on Sustainable Development and lifestyles in harmony with nature to communities, suppliers, other companies and allied entities. Training in SDGs has been carried out on 75 decision makers at the upper and intermediate levels. (Meta 12.8)

Information on sustainability is incorporated through annual evaluations and the Agrolíbano GRI report. (Goal 12.6)



Promotion to reduce waste generation In communities in the last 4 years

112 Cleaning campaigns to reduce pollutants in communities (twice a year in 14 communities)

2 Schools practice recycling organic waste for fertilizer production

Access to ICTs in the education system to 2018

11 Educational centers with Internet connectivity

985 XO computers in educational centers

321 Adolescents use ICTs for education in tools for life through the "JovenSalud" platform

In the communities we invest our own resources and manage multi-stakeholder alliances through the implementation of projects that facilitate access to information and communication technology, bringing computer equipment and Internet to the educational centers of neighboring communities. (Goal 9.c)

The Supplier Development Program has also contributed to small industries and businesses to improve compliance with the regulatory framework and thereby gain access to financial services, adopt clean and environmentally sound industrial processes and strengthen their sustainability in the melon crop value chain. (Meta 9.3 & 9.4)

Goal 11: Make cities and human settlements inclusive, safe, resilient and sustainable. The actions implemented in our operation centers to reduce vulnerability to natural disasters, especially those related to water, have also benefited neighboring communities. (Goal 11.5)

With social investment in the communities, we implement actions to promote access to healthy housing, reducing precariousness and overcrowding and promoting conditions for community hygiene and sanitation. For this we establish public-private alliances where there is a tripartite investment: State - Company - Community, for the development of projects. Projects have also been developed to bring basic services (water and energy) to communities that lacked them. (Goal 11.1)

In the rural communities, the conditions for the elaboration of Community Development Plans have been propitiated so that they are taken into account at the municipal and national level (Goal 11.a). Development plans are developed with broad and inclusive participation of all community actors and include the efficient use of their resources and mitigation actions in the face of climate change. (Goal 11.b)

172 0 1 6 - 2 0 1 8A G R O L Í B A N O S U S T A I N A B I L I T Y R E P O R T


3.8 km Borders built on the banks of the Nacaome River

16 km Vegetative Barriers in areas adjacent to neighboring communities

2.4 millions m3 Water collected in reservoirs during rainy season

Community housing improvement to 2018 191 New homes built (healthy housing)

6% Reduction of housing in precarious condition (from 15% in 2014 to 9% in 2018)

642 Families with access to drinking water

243 Families with access to electricity

2 0 1 6 - 2 0 1 8

DIMENSIÓN ECONÓMICASOCIALDIMENSION


R E P O R T

2 0 1 6 - 2 0 1 8


192 0 1 6 - 2 0 1 8

For Agrolíbano one of the main challenges is the reduction of poverty and assumes as a priority Objective 1: End poverty in all its forms throughout the world, implementing strategies aimed at the poorest employees and neighboring communities, endorsing the slogan "There are no successful companies in failed communities."

SOCIAL DIMENSIONDSG 1.1, 1.2, 1.4, 1.5, 1.a 2.1, 2.2, 2.3, 2.4, 2.a 3.1, 3.2, 3.4, 3.7, 3.8, 3.9, 3.c 4.1, 4.2, 4.4, 4.6, 4.a, 4.b, 4.c 5.1, 5.4, 5.5, 5.6, 5.a 10.1

Agrolíbano, with the objective of contributing to poverty reduction in all its dimensions in the operation areas and with a strong commitment to alignment with the SDGs, has adopted the Multidimensional Poverty Index (MPI) to have a baseline on the characteristics of poverty, which allows us to identify the reality of our social environment and the challenges we face in the near future. In 2018 a study was carried out in all the communities surrounding the melon producing farms. The MPI found was 0.43 (incidence 89%, intensity 48%). This data reflects a situation of very high vulnerability.

With the results of the MPI our social strategy is better focused, since the deprivations found and the targeting of the most left behind guide us to a programmatic proposal. In this regard, we have developed a proposal of 6 programs, and we commit ourselves to the periodic measurement of multidimensional poverty to monitor progress towards achievement of the 2030 goals based on the SDG’s. (Goal 1.2)

Based on our first Sustainability Memory, Agrolíbano through its Foundation has invested US$ 12,954,123.00 for the development of surrounding communities. 17% of the total Investment came from Agrolibano proper founds and the rest 83% in the form of joint responsibility actions in multi-stakeholder alliances (Goal 1.a), which has allowed the following achievements:

1. Reduction of the extreme poverty index (by income) from 49.3% in 2013 to 45% in 2018. (Goal 1.1)

2. Decrease in the global malnutrition rate in children under 3 years old from 14.7% in 2013 to 6.5% in 2018 (Goal 2.2)

3. Reduction of the infant mortality rate from 29/1000 live births in 2013 to 13/1000 live births in 2018 (Goal 3.2)

4. Reduction of illiteracy by 60%, decreasing from 12% in 2013 to 4.8% in 2018 (Goal 4.6)



DMA. 201-1, 02,03,04, 202-1,02,203-1,02,204-1308-1,02, 401-2, 402-1, 403-1, 02,03,04414-1.02

Community Development

Education

Health

Direct target groups:

2,300 Rural families in 19 communities. 14 Public Educational Centers. 18 Public Health Establishments. (11 Primary Care Centers, 3 Maternal Clinics, 2 Elderly Clinics and two Hospitals).

Incidence = 89% Intensity of poverty = 48.09%

Not Poor

Vulnerable

Poor

Vulnerable

Indi

cato

rs

Poor homes

16

14

12

10

8

6

4

2

0

Deprivations

328

184

63

15

7.2

32 0 1 6 - 2 0 1 8

Through the Social Investment Policy, local capacities for sustainable development have been generated, with a comprehensive approach based on community development, health and education, contributing to energizing the local economy and promoting conditions for the generation of household income, especially those who depend of the temporary work provided by the agricultural sector; organizing and strengthening rural savings and credit funds, promoting entrepreneurship and including some entrepreneurial initiatives in our value chain. (Goal 1.4)



Dimension Program Line of action

Standard of Living

Strengthening citizen participation for peace and development

Strengthening leadership in communities Support for the elaboration and management of Community Development Plans with an integrated focus and management

Local economic development

Strengthening of rural boxes for savings and credits Entrepreneurship Promotion Strengthening of agricultural production as an income-generating economic activity and as food production for family consumption

Health

Comprehensive Care Plan for Child Care (PAIPI for its initials in Spanish)

Child Nutrition Initial Education – Early stimulation

Pre-Primary Education

Healthy families

Promotion of sexual and reproductive health Healthy housing - water and sanitation Food security and healthy lifestyle Community Health Committees Improvement in the attention of neglected health problems

Education

5-Stars School Program

Strengthening of pedagogical and organizational aspects Promotion of a culture of peace through art, culture and Sports School Health Environment Improvement of the infrastructure

Access to Education for groups in social exclusion

Literacy

Non-formal education alternatives to improve basic education coverage

Local Economic Development Alternatives in the last 4 years 15 Rural saving banks working

18 Communities with access to micro financing through rural savings banks

640 Family members of rural savings banks (28% of total families in the area of influence)

72% Of the total members are women (461 of 640)

$143,592 In assets belonging to the 15 rural savings banks

271 People with microenterprise training

136 Entrepreneurships implemented (50% of people trained)

96 Active ventures that show some sustainability factors (71% of those implemented) 90% led by women

212 0 1 6 - 2 0 1 8

Actions to reduce poverty include the response to situations of vulnerability related to climatic phenomena, reducing the exposure of people, especially the poorest. (Goal 1.5)

Attention is provided according to the dimensions of poverty to the families of collaborators, contributing to the health, education and living standards of those with the lowest income, with emphasis on temporary collaborators. (Goal 1.2)

In the communities, deprivations that affect people's quality of life are addressed, such as access to electricity, drinking water, basic sanitation and adequate floors, contributing to the reduction of multidimensional poverty. (Goal 1.2, 1.4)

The conservation and protection of the environment is one of the fundamental pillars assumed by the senior management of Agrolíbano, introducing as of 2017 the RAS Standard of “Sustainable Agriculture”. This allows us to implement a socio-environmental management system, prioritizing the continuous improvement of environmental management and promoting systems and programs that support a Sustainable Agriculture system, in accordance with version 4 of the Sustainable Agriculture Standard 2010, updated in 2015. This system takes into account the necessary measures to prevent the contamination of soils, atmosphere and water so that agricultural operations are implemented with respect to the environment and assessing the environmental impact. We promote the protection and restoration of existing natural terrestrial and aquatic ecosystems and maintain permanent environmental surveillance, particularly in those operations with potential risks, preventing negative environmental impacts (Goal 2.4).

Apoyo a familias de colaboradores

en los últimos 4 años

Given the nature of the business, Objective 2 Zero Hunger, achieve food security and improved nutrition and promote sustainable agriculture is key for Agrolíbano. Thus, Agrolíbano has obtained the Rainforest Alliance Certification for the last two years, which audits our Sustainable Agriculture Management System. (Goal 2.4)



Actions to reduce vulnerability to climatic phenomena in neighboring communities

3.8 km Borders built on the banks of the Nacaome River 16 km Vegetative Barriers in areas adjacent to neighboring communities

2.4 millions m3 Water collected in reservoirs during rainy season

Support to families of employees

$16,944 In medical assistance to 101 family members of collaborators in the last 4 years

$25,815 In educational scholarships to 50 relatives of employees in the last 4 years

1,361 Projects to improve housing conditions for families of employees in the last 4 years

453 Food production projects with families of employees in the last 4 years

116 Family members of employees trained for entrepreneurship in the last 4 years

$2,841,707 Sales of products from the basic basket at cost to employees in commissariats in the last 3 years

Improvement of living conditions in neighboring communities in the last 4 years 1299 Housing (72%) of the coverage area have improvements

2456 Projects built in the three years reported (healthy floor, latrines, showers, sinks, eco-stoves, drinking water systems, water filters, construction of new homes, electricity)

5 Drinking water systems built or repaired

243 Families benefited with electric power systems

222 0 1 6 - 2 0 1 8

Investment in the research and development of bioregulators that replace chemicals with biological products in Integrated Crops Management has been strengthened. (Goal 2.a)

Likewise, substantial improvements were made in our dining rooms, subsidizing the payment for food and defining healthy menus to improve employee nutrition. Commissions are also available to provide employees with products of the basic basket at cost price (Goal 2.1, 2.2).

Outside the melon growing season, at least 35 Hectares of corn is planted per year, contributing to the food security of an annual average of 1,333 employees and their families (Goal 2.1).



Goal 3 refers to guaranteeing a healthy life and promoting well-being for all at all ages. In this internal approach, the company has an Occupational Health and Safety Policy whose main objective is to preserve the health of employees. (Goal 3.9)

In the communities, our contribution to Food Security is focused on improving local capacities for food production, through the implementation of kitchen gardens, school gardens and support for producers of basic grains with resources and technical assistance for the implementation of environmentally friendly technologies and resilience to climate change, support for post-harvest storage and improved access to micro financing through rural savings banks. Women's access to the means of production is encouraged (resources, financing of rural savings banks, technical assistance). (Goal 2.3)

Contributions to Food Security in the last 4 years

708 Families (31% of the area of influence) improved food availability through kitchen gardens and / or basic grain production

501 Producers of basic grains benefited with corn seed resistant to the hot and dry climate produced on Agrolíbano farm (50% women)

3 Community school farms promoting good agricultural practices

11 Schools produce food in school gardens and chicken coops

642 Families benefited with improved water availability for human consumption

Regarding the improvement of nutrition, we have focused our actions towards the most vulnerable population groups, carrying out nutritional surveillance and complementary feeding actions aimed at children under 3 years, nutritional education to mothers of children under 5 years, strengthening the school snack, nutritional education to teachers and mothers, development of a school health program that includes nutritional surveillance, detection of anemia and education from child to child, as well as the distribution of complementary food aimed at pregnant women, the elderly, people with disabilities and families living in extreme poverty. (Goal 2.1, 2.2)

Nutrition improvement to 2018

8.2% Reduction of child malnutrition (from 14.7% in 2013 to 6.5% in 2018)

6% Increase exclusive breastfeeding to children under 6 months

70 Volunteers in the community trained in nutritional surveillance

97% Of families with children under 5 years doing weight control

17% Reduction of school malnutrition, from 35% to 18% between 2013 and 2018

> 3,200 Students in pre-basic and basic education receive an enrich school snack every year

14 Schools (100% of those in the coverage area) with a school health program that includes nutritional surveillance and anemia detection

2,066 Vulnerable people (958 children under 5, 171 pregnant and lactating women, 871 seniors and 66 people with different abilities) receive complementary feeding each year

The work centers have medical clinics, as well as medical and nursing staff. The health program includes medical care, essential medicines, vaginal cytologies, vaccination, blood tests to collaborators who have contact with chemicals, deworming and vitamin dispensing. Knowing that the southern part of Honduras is in the region affected by Chronic Mesoamerican Nephropathy, still under study, and taking into account that one of the risk factors is work activity in areas with high solar radiation and subsequent dehydration, we prioritize the daily dispensing of oral serum to all field workers, in order to avoid dehydration and thereby prevent kidney damage. (Goals 3.4, 3.7, 3.8)

232 0 1 6 - 2 0 1 8

en los últimos 4 años

In addition, as part of the mental health program, trips are made for recreational purposes for temporary and permanent employees and their families. (Goal 3.4)

Externally, in the communities, our social investment strengthens family, community and institutional capacities for the comprehensive approach to health. We contribute to the promotion of health and the strengthening of public health facilities. Actions are taken to contribute to the reduction of infant mortality due to preventable causes, promotion of safe motherhood, education for the prevention of STDs including HIV, promotion of sexual and reproductive health, prevention and early detection of noncommunicable diseases for reduce premature mortality, promoting better habits for a healthy family and community environment. (Goals 3.1, 3.2, 3.3, 3.4, 3.7, 3.9)



Health care for employees in the 2 years of this report

9,883 Medical care to employees 383,058 Oral serum dose

338 Vaginal cytology tests for the early detection of cervical cancer 12 Employees supported with timely treatment for abnormalities related

to cervical cancer

3,393 Dosage of dewormers 1,902 Vitamin Dose

854 Influenza vaccines for employees who work at low temperatures in the packing areas

477 Pre-occupational blood tests to employees who have contact with chemicals

Collaborators who attend the recreational trip annually 3,780 Temporary employees 220 Permanent employees

242 0 1 6 - 2 0 1 8

Regarding the improvement of access to quality essential health services, it has been contributed through the improvement of health facilities, provision of medicines and training of health personnel. (Goal 3.8, 3.C)

Regarding Objective 4: Ensure inclusive, equitable and quality education and promote lifelong learning opportunities for all. Agrolíbano promotes learning opportunities for employees through non-formal education processes with external or internal facilitation and facilitating conditions for professionalization. Training processes constitute a fundamental pillar to achieve high standards of productivity, quality and profitability and have

contributed to improving the work environment. We have been accompanied in this process by: the Honduran Institute for Vocational Training - INFOP, Professor at the prestigious INCAE Business School Dr. German Retana, International Coach Dr. Sue Aguayo, the economist Mr. Marco Aurelio, economist, the Renowned Venezuelan motivator and marathoner Mickael Melamed. (Goal 4.4)

Our programs include activities with the families of collaborators to promote family unity, well-being and financial health, among others.



Health Promotion

16,422 People reached with health promotion actions in the communities in the last 4 years

551 Talks about housing and healthy habits, prevention of STDs and timely detection of cervical cancer in the last 4 years

1601 Vaginal cytologies performed in the last 4 years 21 Community health fairs for the prevention of chronic

noncommunicable diseases in the last 4 years

359 Home visits to monitor healthy housing in the last 4 years

4 Pregnant clubs running annually 451 Pregnant women informed about safe motherhood and

breastfeeding in the last 4 years

353 Maternity baskets delivered to the same number of postpartum women in the last 4 years

20.4% Increased of childbirth in safe conditions, from 77.6% in 2014 to 98% in 2018

100% Pregnant women attend prenatal control by 2018, compared to 85% in 2014

1,299 Houses benefited with improvements focused on hygiene and basic sanitation, for prevention of diarrhea, pneumonia, neglected tropical diseases and with vectorial transmission in the last 4 years

1421 Elementary students reached with school health program annually

131 Trained children's school health facilitators promote healthy habits among their colleagues by 2018

10 Health Committees organized and trained to strengthen community participation in the exercise of the right to health by 2018

32 Training workshops for members of health committees in the last 4 years

190 Health promotion activities carried out by 10 community health committees in the last 4 years

Improved access to quality health services in the last 4 years

18 Strengthened health establishments to improve access to quality health services (11 primary care centers, 3 maternal clinics, 2 elderly clinics and 2 hospitals)

7 Public health facilities with infrastructure improvements

$3,888,493 Managed in donations of medicines and medical supplies delivered to public health facilities

10 Training workshops for health personnel

93% Users of public health services in supported establishments show satisfaction with the care received

95% User satisfaction with the attention of medical brigades 18 Hospital surgical brigades

1,615 People improve their quality of life with interventions in surgical brigades: urological, ophthalmological and reconstructive

21,318 People treated with medical-dental brigades in the communities

252 0 1 6 - 2 0 1 8

Regarding Objective 4: Ensure inclusive, equitable and quality education and promote lifelong learning opportunities for all. Agrolíbano promotes learning opportunities for employees through non-formal education processes with external or internal facilitation and facilitating conditions for professionalization. Training processes constitute a fundamental pillar to achieve high standards of productivity, quality and profitability and have

contributed to improving the work environment. We have been accompanied in this process by: the Honduran Institute for Vocational Training - INFOP, Professor at the prestigious INCAE Business School Dr. German Retana, International Coach Dr. Sue Aguayo, the economist Mr. Marco Aurelio, economist, the Renowned Venezuelan motivator and marathoner Mickael Melamed. (Goal 4.4)

The training processes during the last 3 years have been oriented to human and professional development, addressing issues such as: empowerment, teamwork, empathy, emotional intelligence, managerial skills. In addition, more than 180 employees who have received life and executive coaching. The processes with senior management aim to facilitate the transition of the company from generation to generation.

Additionally, a fund has been created for educational loans to employees who wish to continue studying a professional career in which they can develop within the company. With this fund, during this period 5 employees have been professionally trained, 3 in undergraduate programs and 2 in postgraduate. (Goal 4.4)

At the community level, we have addressed the right to education for all people as the key pillar to break the cycle of poverty, implementing four strategies: Access to quality education in the formal system, Literacy, Initial Education and Non-formal Education. This with the objective of contributing to improve access to quality formal and non-formal education alternatives that allow children and the family to develop their basic competences, involving the key actors to ensure sustainability.

Our programs include activities with the families of collaborators to promote family unity, well-being and financial health, among others.

por el Dr. Germán Retana

Germán Retana



Marco Aurelio Jerezano

Sue Aguayo

Mickael Melamed

Kenia Yaquelin Herrera CastroCollaborator AGROCIBI / AgrolíbanoMaster in Management SystemsIntegrated Quality

Training processes in the two years of this report 9,328 Training hours with Dr. Germán Retana

212 Employees trained by Dr. German Retana

2,772 Training hours with Dr. Sue Aguayo

132 Employees in coaching sessions by Dr. Sue Aguayo

1,080 Families reached by Dr. Sue Aguayo

23,040 Training hours with Lic. Marco Aurelio Jerezano 480 Temporary employees trained by Lic. Marco Aurelio Jerezano 160 Training hours with economist Lic. Mickael Melamed, benefiting 40

people 30 Employees received an average of 2 hours of coaching by Mickael

Melamed 160 Hours of coaching to the Steering Committee by Mickael Melamed

$ 738,564 Invested in training processes in the last 2 years



262 0 1 6 - 2 0 1 8

The main results of the actions to help all girls and boys have access to and complete basic education (primary and lower secondary education) are described below: (Goal 4.1, 4.2, 4.a, 4.b, 4.c)

We contribute to early childhood development with an initial education strategy implemented at the community level with the participation of parent volunteers; the strategy has an emphasis on the evaluation of the integral development of childhood and early stimulation. (Goal 4.2)

With the literacy strategy we assume and overcome the challenge of reducing illiteracy in communities of the area of influence from 12% to 5% by July 2018. In addition, leveling programs for young adults and literate adults are supported to improve reading, writing and arithmetic skills. (Goal 4.6)

The non-formal education strategy is aimed at improving access to different levels of education to the postponed population, providing alternatives to young people who have not had access to educational centers to complete basic education or secondary education, as well as training processes in communities that provide tools for life and increase skills for entrepreneurship facilitating their insertion into the labor market in better conditions. (Goal 4.4)

From non-formal education, it has also been possible to guarantee universal access to pre-basic education in communities that do not have this educational level, this through the training of educators and the implementation of Community Centers for Pre-Basic Education (CCEPREB). (Goal 4.2)



Access to quality education in the formal system - 5 Star Schools Program 14 Schools integrated in the 5 Star Schools program (E5E) for the past 4 years

3324 Pre-basic and basic education students reached annually with the E5E program 12% Increase the rate of schooling in childhood and adolescence (from 73% in 2014 to 85% in 2018) 131 Teachers strengthened with the E5E program in the last 4 years

144 Hours of training in basic education provided to each teacher in Spanish, mathematics, English, values, administrative subjects, articulation from pre-basic to basic, creation of projects for the development of educational centers and Fundamental Law of Education, in the last 4 years

80% Of the teachers of the E5E have improved the use of the Basic National Curriculum Design and its tools to 2018 50% Of the E5E fulfill at least 90% of the indicators with which the program was evaluated in 2018

8 Schools have raised the level of coverage from 2nd to 3rd cycle (from 6th to 9th grade) in 2018

1292 Adolescents with access to 3rd cycle of basic education in 2018 (the program began in 2011 with 89 adolescents in 3rd cycle)

14 Educational centers have had improvements to their infrastructure (classrooms, hydro-sanitary systems, electrical systems, perimeter fences, kitchen warehouses, courts, multipurpose rooms, furniture) in the last 4 years

7 Educational centers with technology classrooms to promote the use of ICT in the last 4 years 11 Educational centers with internet connectivity to 2018 12 Educational centers with the initiative of an XO computer for boys and girls from 3rd to 6th grade in the last 4 years 13 Educational centers with initiative of technological committees in the last 4 years 14 Educational centers with tutoring scholarship program in the last 4 years

120 Hours of training for each teacher of pre-basic education in the last 4 years

85% Of strengthened pre-basic education teachers with capacities to implement best methodological practices at the classroom level by 2018

15 Pre-basic education centers equipped according to the needs of girls and boys, and equipped with educational and educational materials, during the last 4 years

450 Girls and boys with access to pre-basic education annually 3,324 Students served with school supplies and teaching materials annually

44 Students with academic excellence benefited from scholarships for their access to secondary and higher education during the last 4 years

14 Educational centers carry out reforestation campaigns and cleaning campaigns in their communities annually 11 Educational centers with a school garden during the last 4 years 3 Educational centers have implemented breeding of minor species in the last 4 years

14 Educational centers with strengthening of school snacks (organized committees, provision of fortified foods, incorporation of products from orchards and chicken coops) annually

14 Educational centers with school health program annually

Initial education 524 Children under 5 years of age treated with a Community Initial Education program 100 Parent volunteer educators who implement initial education strategy

7 Communities benefited with early stimulation plans and evaluations of the integral development of the child

Literacy

60% The illiteracy rate in the communities in the area of influence has been reduced (from 12% to 4.8%)

14 Communities where literacy processes have developed 376 Literate people

272 0 1 6 - 2 0 1 8

The non-formal education strategy is aimed at improving access to different levels of education to the postponed population, providing alternatives to young people who have not had access to educational centers to complete basic education or secondary education, as well as training processes in communities that provide tools for life and increase skills for entrepreneurship facilitating their insertion into the labor market in better conditions. (Goal 4.4)

From non-formal education, it has also been possible to guarantee universal access to pre-basic education in communities that do not have this educational level, this through the training of educators and the implementation of Community Centers for Pre-Basic Education (CCEPREB). (Goal 4.2)

For the next period we have made the commitment to promote actions around Goal 4.7, in order to ensure that all students acquire the necessary knowledge to promote sustainable development, among other things through education for sustainable lifestyles and development, human rights, gender equality, the promotion of a culture of peace and nonviolence, world citizenship and the valuation of cultural diversity and the contribution of culture to sustainable development.

To contribute to Goal 5: Achieve gender equality and empower all women and girls, the Agrolíbano Foundation has a Gender Policy for greater equity between men and women in the field of power relations, in community development, education and health and, therefore, contribute to the eradication of all types of violence against women in the daily lives of families, communities and the institution. (Goal 5.1)

We contribute to gender equality from strategies for economic development, health promotion and community participation for local development, promoting women's leadership in decision-making positions in community organizations with which we establish alliances. (Goal 5.5)

We promote the inclusion of women in spaces that foster their development: rural savings banks, training processes and access to resources for income generation, mainly through entrepreneurship and agricultural production. (Goal 5.a)

Our Code of Ethics establishes non-discrimination based on sex or other reasons. In recent years there has been a steady increase in the proportion of female labor. Salaries and benefits are distributed equally. The number of women in supervisory positions has increased by 4%, especially in the area of balers. However, it is a challenge to significantly increase the proportion of women in decision-making positions. (Goal 5.1)

Proportion of employees by gender% by season

2014-2015 2015-2016

Mens Women

2016-2017

70

60

50

40

30

20

10

0

6257

53

3843

47

Non-formal education

5% Young people between 15-25 years participate in non-formal alternative education programs at the community level

221 Students benefited with alternative modalities to complete basic and secondary education

67 Young people trained in entrepreneurship

321 Teenagers acquire tools for life with the Young Health platform

137 Boys and girls with access to pre-basic education through CCEPREB community centers



282 0 1 6 - 2 0 1 8

We also carry out actions to promote sexual health and reproductive health aimed at employees in each farm and packing house as well as in neighboring communities with emphasis on the prevention and timely detection of cervical cancer, prevention of STDs and safe motherhood. In the actions of promotion of sexual health and reproductive health we try to integrate men and women from a dynamic of shared responsibilities, for example: in safe motherhood actions at least 10% of the participants were men, in actions for the Timely detection of cervical cancer 48% were men and in the prevention of STD / HIV 51% were men. (Target 5.6)

In the actions for the promotion of children's health, women have traditionally participated, in the communities where we work, the progressive inclusion of men in activities of integral attention to children in the community, initial education and health committees has been achieved, being male participation between 5 and 10% of those who make up the community groups that carry out these activities. To adopt better habits in the family and achieve a healthy home, shared responsibilities in domestic work are promoted. (Target 5.4)

Contributions to Objective 10: Reduce inequality in and between countries, from the management of suppliers that is linked to our values and objectives, through ethical policies that set standards to ensure equal conditions and thereby fair operating practices.

From social investment in the communities, with actions to promote local economic development with the focus on the poorest families in order to reduce poverty levels, managing to reduce extreme poverty by 4.3 percentage points to July 2018. (Goal 10.1)

Entrepreneurship promotion actions are largely aimed at the inclusion of young people and women who do not participate in local economic dynamics and who are excluded from educational systems.



Gender equity and women's empowerment

72% Of the total number of associated people in rural boxes are women (461 of 640) to 2018

54% Of the people benefiting from projects for agricultural production (inputs, technical assistance) are women (382 of 708) by 2018

87% Of the people trained in entrepreneurship are women (236 of 271) by 2018

15,664 People reached with sexual and reproductive health promotion activities, of which 52% are women and 48% men in the last 4 years


R E P O R T

2 0 1 6 - 2 0 1 8


DIMENSIÓN ECONÓMICA

ENVIRONMENTALDIMENSION

302 0 1 6 - 2 0 1 8

Agrolíbano has developed an environmental management policy where we have committed ourselves to Objective 13: Adopt urgent measures to combat climate change and its effects. Under it, Agrolíbano has a system for monitoring global and local environmental factors, so that these climate indicators help us identify risks and make decisions focused on adapting to climate change and taking the necessary mitigation measures to reduce environmental impact.

Actions are carried out to reduce exposure and vulnerability to climatic phenomena, which could affect neighboring communities and operations centers, investing in the construction of rainwater borders and reservoirs to prevent flooding, construction of live fences and reforestation of water basin and risk areas. (Goal 13.1)

10 people from the Department of Safety and Environmental Management were trained for 8 hours on Climate Change and Carbon Footprint issues, for a total of 80h / training. (Goal 13.3)

Agrolíbano participates in the regional consultation tables, one of them, the Environment Bureau, Risk Management and Climate Change Adaptation (AGRACC). (Goal 13.2)

ENVIRONMENTAL DIMENSION In the neighboring communities we also contribute to this objective, with the promotion of reforestation campaigns, participation in the reduction of pollutants through cleaning campaigns, promotion of recycling, preparation of organic fertilizers and the proper use of water resources and soil (training processes and adoption of good practices). (Goal 13.3)

Identify and map the existing aquatic and terrestrial natural ecosystems of the company.All identified aquatic and terrestrial ecosystems are protected and conserved.Ecosystem recovery is promoted by reforesting unproductive areas that are not appropriate for cultivation or areas located in strategic locations for ecosystem recovery.Crops are not produced within natural ecosystems.Ecosystem areas are not replaced by crop areas.Tree cutting or plant extraction are not practiced.Burns are prohibited.Artificial changes of streams or rivers are prohibited.To avoid flooding, the restoration of riverbeds and borders in rivers are promoted in flood risk areas.

For Agrolíbano the water is a key resource in the production processes, therefore, contributing to Objective 6: Ensuring the availability of water and its sustainable management and sanitation for all is essential. The company has a high commitment to the protection, management and maximization of water use, implementing a management system that includes, among others, the following: (Goal 6.6)

DMA. 301-102-03, 303-1,02,03, 304-01,02,03,04, 306-1,02,05 SDG 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.b 7.1, 7.2, 7.3 13.1, 13.2, 13.3 14.1, 15.1, 15.2, 15.3, 15.4, 15.5, 15.7



312 0 1 6 - 2 0 1 8

Agrolíbano's environmental management has been focused on the rational use of water. That is why since our first baseline (2013-2014) we have increased the production of water obtained by rain in 10% and decreased by the same percentage the consumption of extracted water. With this we have achieved a better conservation of natural sources. (Goal 6.4) Since 2016 our actions are being certified with the Rainforest Alliance regulations that verify compliance with environmental measures in all our farms.

Our water consumption per ton of melon produced went from 66.5 m3/ton to 51 m3/ton achieving a reduction of 15.5 m3/ton (23%). Our reforestation programs have reached 61,000 trees planted and through good practices aimed at improving water retention (subsoil technique, cover crops, use of agribon fabric cover and vegetative barriers) we have achieved that the water reserves have reached 18% of our productive capacity, water that, when left in the lagoons, contributes to the biodiversity protection. (Goal 6.4)

Improvements have also been made to the water purification plant's membrane system, doubling its installed capacity, which went from 1,600 gallons to 3,500 gallons. (Goal 6.3)

Agrolíbano participates in river basin and microbasin organizations, contributing to the integrated management of water resources. (Goal 6.5)

The communities surrounding our operation centers present a critical situation regarding the availability of water for human consumption, so this issue is one of our priorities. In this sense, we invest our own resources and manage cooperation for the implementation of community drinking water systems and strengthen the organization and operation of Water Boards for the sustainable management of these systems. We contribute to reforestation involving communities and promoting the use of drip irrigation systems with small producers. (Goal 6.1, 6.b)

The infrastructure for sanitation is also deficient in the area, so we promote alternatives that contribute to a healthy environment, whether at a family or community level. (Goal 6.2)

Water Board of San Agustín, N a m a s i g u e , Choluteca

Agrolibano Water Consumption2013-2014

29%

71%

Agrolibano Water Consumption2015-2018

39%61%



Water and sanitation in the last 4 years

5 Drinking water systems built or rehabilitated

642 Families benefited with improved water availability (28% of coverage area)

40% Of families express improvement in water availability (27% more than in 2014)

14% Increase housing coverage with drinking water

1,299 Homes with improvements to basic sanitation

87% Housing with adequate hygienic services (11% more than in 2014)

4 Water Boards strengthened

11 Technical studies conducted to identify alternatives to improve water availability in 11 communities

322 0 1 6 - 2 0 1 8

Being Objective 15: Promote the sustainable use of terrestrial ecosystems, fight desertification, stop and reverse land degradation and curb the loss of diversity we have decided that areas for crop production farms should not be located or affect areas of national parks, wildlife refuges, biological corridors, forest reserves, buffer areas or public or private biological conservation areas and neighboring communities. (Goal 15.1, 15.5)

A tree production program was established since 2015 to reforest within farms, in communities, in protected areas with municipal UMA and the San Lorenzo water purification area. (Goal 15.2)

The company has assumed the commitment to double the annual average of trees planted in the following years.

We maintain an inventory of wild animal species and their habitats. (Goal 15.4, 15.7)

• Hunting and fishing of wild animals within farms owned by Agrolíbano are prohibited throughout the year.

• Extraction of wild species is prohibited.• The uncontrolled use of agrochemicals that may cause

wildlife poisoning is prohibited.• The Integrated Crop Management program is promoted,

focused on the biological control of pests and diseases.

A permanent soil monitoring program is implemented, performing analysis on all production lots of all farms to verify their health, their presence of nutrients and their organic matter requirements: This program includes the annual sowing of 300 Ha of rotation crops, either with sorghum or legumes in lots that require this process according to laboratory results. (Goal 15.3)

In the communities we also contribute to the promotion and realization of reforestation campaigns, promotion of the non-burning of stubble for the preparation of cultivation areas, incorporation of stubble to the ground and use of low pressure irrigation systems. (Goal 15.2, 15.3)

The impacts generated in our environmental management policy have allowed us to contribute to Objective 14: Conservacion y utilizacion sostenible los océanos, los mares y los recursos marinos para el desarrollo sostenible.

Agrolíbano maintains a high commitment in the protection of marine life, ensuring that its production centers are not within the declared marine reserves or protected areas. Mitigation measures are implemented to ensure that no waste or wastewater reaches the seas. Aquatic ecosystems are protected from drift, erosion and runoff of agrochemicals to water sources, wetlands, rivers, streams and lagoons, as well as banks of other aquatic ecosystems. (Goal 14.1)

On the other hand, in order to avoid the disposal of plastic waste to the oceans, we started an agreement with the cement factory ARGOS, through which plastic waste will be removed and will annually recycle 120 tons of plastic from the fields. (Goal 14.1)

25,000

20,000

15,000

10,000

5,000

0Season 14-15 Season 15-16 Season 16-17 Season 17-18

Tree production for reforestation

10,00012,000

15,000

24,000



332 0 1 6 - 2 0 1 8

Likewise, aware of the impact on energy consumption associated with Objective 7: Ensure access to affordable, safe, sustainable and modern energy for all, Agrolibano has a high commitment to rational use of energy to minimize environmental impact, for what we count with a comprehensive energy saving plan in our operations (Goal 7.3), which includes: permanent control of the daily monitoring of electric power consumption, as a measure of mitigating its consumption. In addition, lighting systems with automatic motion sensors have been installed, as well as on and off systems with automatic motion sensors.

We also commit to moving towards energy sustainability with:

• The reduction electrical energy consumption per packaged Ton, Kw/Ton, of 5% per year.• The control of reactive and active energy, using energy capacitors. A permanent control in

reducing the payment of reactive energy by 10% per year.• To install and maintain capacitor banks for the optimal use of electrical energy.• To install automatic motion control systems in one packinghouse per year.• To have 100% of cold rooms with automatic ignition.• To evaluate and implement far as possible systems of photovoltaic energy production, to increase

the % of substitution of our electricity consumption of fossil fuel to photovoltaic.• Implement irrigation systems with photovoltaic energy• Installation of 1 Mw of photovoltaic energy for use in packing plants• By 2025 achieve certification of Carbon Neutral footprint

In the last two years included in this report, we have installed photovoltaic systems in some operations centers, generating a total of 165,471 Kw, which has meant the replacement of 16.2% of fossil fuel consumption energy by solar energy in the central office and the company's microbiological production laboratories. (Goal 7.2)

Around our operations centers, we have contributed to the access to electricity to communities that did not have this basic service, through social investment projects with the establishment of public-private partnerships. (Goal 7.1)



Access to electricity in the last 4 years 3 Communities benefited with electric power systems

243 before 30% lectricity (54% in 2014 to 84% in 2018)

Families gain access to electricity in communities where the service did not exist

Increase access to e

2 0 1 6 - 2 0 1 8


R E P O R T


ANNEXES

1. Verification letter2. Verification matrix

J. ROBERTO LEIVACEO FUNDAHRSE

352 0 1 6 - 2 0 1 8

To Agrolíbano stakeholders

Introduction

The Honduran Foundation for Corporate Social Responsibility FUNDAHRSE is a private sector organization in Honduras. Created in 2004, it has a code of ethics in order to ensure high standards of transparency and integrity in order to prevent possible conflicts of interest. FUNDAHRSE as an external verifier has been responsible for conducting the analysis process of the Agrolíbano Sustainability Report 2016-2018 for which a series of evaluation techniques were implemented.

Scope of the verification

The main function of FUNDAHRSE was to provide a statement veracity of the information poured into the 2016-2018 Agrolibano Sustainability Report in accordance with the requirements of the norms and international standards:t

• GRI-Standard guide• Sustainable Development Goals• ISO 26000:2010

EXTERNAL VERIFICATION REPORT

In this sense, a methodology was defined following the GRI-Standards process and includes the review of the contents of this report, the data of the basic and specific contents, as well as the associated sector documents. The verified information is based on Agrolíbano's operations and the data provided by the reporting organization.

Methodology used

FUNDAHRSE verified the consistency of the information based on the principles to determine the contents of a GRI-Standards Report and for this purpose the verification of the relevant documentation provided by Agrolíbano, interviews with key people for the generation of the indicators, access to the records of stories and testimonies, analysis of the sector documents and sampling of the main performance indicators of the organization. The corresponding table is annexed with the detail of the methodology for the verification of the indicators.

Highlights

• The presence of the Agrolíbano integration to the Sustainable Development Goals and its alignment with the ISO 26000 Standard as referents of the strategic management of the organization are reflected. Thus, complying with the principles of sustainability and completeness.

• The realization of materiality and respect for the principles of materiality and inclusion are verified through social consultation that generate response and compliance actions by the organization.

• The impulse towards sustainability is verified in the three dimensions of sustainable development, especially in the area of environmental management with the contents of water security.

Improvement areas

• Encourage the positioning of Agrolíbano around the 2030 SDG.• Provide for the next report the integration of the water management findings and the measurement

of the emission of gases with impacts on the climate.

San Pedro Sula, September 17th, 2019

Conclusions Based on the verification work, it has been concluded that the 2016-2018 Agrolibano Sustainability Report has been carried out in compliance with the "in accordance" criterion with the elaboration of the GRI- Standards Sustainability Reports and quality standards above exposed.

The following graphic reflects the level of application of the principles established by the international criteria used. In it, the application of the principles that allow considering the Agrolíbano Sustainability Report 2016-18 in the Exhaustive option is observed.


Participation Sustainability Materiality Exhaustivity

Application Level of the GRI-Standards Principles



AGROLIBANO GRI Standard PERFORMANCE INDICATORS TABLE EXHAUSTIVE Option, SDG 2030, ISO 26000

GENERAL BASIC CONTENTS Categorand Basic Contents

Indicator Description Exhaustive Option

Cross-reference- direct response

Verification ISO26000 SDG 2030

GRI 101 Foundation

Section 2 of the GRI 101

Handbook Implementation of the Reporting Principles. √ Fundahrse

GRI 102

General Indicators 102-1 Organization name √ Sustainability report

2013-14 7.4.2

Organization profile

102-2 Activities, Brands, Products and Services √ Sustainability report 2013-14

102-3 Location of the organization's headquarters √ Sustainability report 2013-14

102-4 Location of operations √ Sustainability report 2013-14

102-5 Owners and legal form √ Sustainability report 2013-14

102-6 Served Markets √ Sustainability report 2013-14

102-7 Organizational dimensions √ Sustainability report 2013-14

102-8 Information on employment and other forms of recruitment √ Sustainability report

2013-14

102-9 Supply chain √ Sustainability report 2013-14

102-10 Significant changes in the organization and supply chain √ Sustainability report

2013-14 6.4.1, 6.4.2, 6.4.4.,6.8.5

102-11 Description of how the organization has adopted an approach or precautionary principle √ Sustainability report

2013-14

102-12 External initiatives √ Sustainability report 2013-14

102-13 Membership to associations √

Strategy 102-14 Statement of the Highest Representative √ 7.8

102-15 Main impacts, risks and opportunities √ 6.3.10

3. Ethics and integrity

102-16 Values, principles, standards and Code of behavior √ 5.3.6.4.5

102-17 Ethical risk control and warning mechanisms √

Governance

102-18 Governance structure √ 102-19 Delegated authority √

102-20 Levels of responsibility in economic, social and environmental areas. √ 7.3.2

102-21 Consult interest groups in economic, social and environmental dimensions √

102-22 Composition of the high administrative structure and its committees √

102-23 Names and positions of the main authorities √

102-24 Nomination and election ways of the main authorities √

102-25 Managing conflicts of interest √ 5.3

GRI 102

Governance

102-26 Role of senior management in managing the organization's purposes, values and strategy. √ 5.3

102-27 Level of academic and administrative training of senior management √ 7.3.3

102-28 Evaluation of the performance of the organization's senior management √

102-29 Identification and management of economic issues. Social and environmental issues. √

102-30 Efficiency in risk management. √

102-31 Review of economic, social and environmental issues. √ 7.5.3

102-32 Role of senior management in the process of reporting sustainability √

102-33 Communication of critical issues √ 7.6.2 102-34 Nature and number of critical issues √ 7.6.2

102-35 Remuneration policies √ 6.2

102-36 Process for determining remuneration Will be presented in

the next Memory

102-37 Interested parties incorporated in the remuneration Will be presented in

the next Memory

102-38 Reason for annual compensation Will be presented in the next Memory

102-39 Percentage of annual increase for annual compensation Will be presented in

the next Memory

Commitment to

Stakeholders

102-40 List of Interest Groups √ Materiality process

102-41 Collective agreement contracts Doesn't apply

102-42 Identification and selection of stakeholders √

102-43 Commitments to stakeholders √

102-44 Selected material topics √ Materiality process

Reporting Practice

102-45 Entities included in the consolidated financial statements √

102-46 Contents of the definition of the Report and Material Indicators √ Materiality

process

102-47 List of material topics √

102-48 Re-expression of information √ GRI standards are maintained

102-49 Changes in reporting formats √ GRI standards are maintained

102-50 Reporting period √ 2016-18

102-51 Date of last report √ 2013-2014

102-52 Reporting cycle √ Biennial

102-53 Point of contact for questions about Memory √

102-54 Claims when reporting in accordance with the GRI. √

102-55 GRI Content Index √

102-56 External audit √ FUNDAHRSE

FUNDARHSE √



AGROLIBANO TABLE OF PERFORMANCE INDICATORS GRI standard option: Exhaustive according to GRI standard, ISO

26000, SDG and Global Compact SPECIFIC BASIC CONTENT

Category Specific Basic Contents Indicator Description Exhaustiv

e Option Material Aspects Verification Reason for

omission SDG

Economy

Economic performance GRI

201

Dma Economic Value √ √ 8

201-1 Economic value generated and distributed √ √ 8.1

201-2 Financial consequences and other risks and opportunities due to climate change √

201-3 Coverage of the organization's obligations due to social benefit programs √

201-4 Financial aid received from governments √

Presence in the GRI 202 Market

Dma Economic Value

202-1 Range of relationships between the standard starting salary and the local minimum wage by gender in places where significant operations take place

√

202-2 Proportion of senior managers from the local community in significant operations √

Indirect Economic

Consequences GRI-203

Dma Management Approach

203-1 Development and impact of infrastructure investments and services provided primarily for public benefit √

203-2 Significant indirect economic impacts and their scope √

GRI-204 Recruitment

Practices


204-1 Proportion of spending for local suppliers in significant operations √

Anti-corruption GRI 205

205-1 Operations assessed for risks associated with corruption √

205-2 Communications and training on anti-corruption policies and procedures √

205-3 Confirmed incidents of corruption and actions taken √ No cases

Anti-Monopoly Behavior GRI

206


206-1 Legal actions for anti-competitive behavior, antitrust and monopoly practices √

Environment

GRI 301 Materials


GRI 301-1 Materials used by weight and volume √ W1

GRI 301-2 Percentage of materials that are recycled √

GRI 301-3 Recycled products and their packaging √

GRI 302 Energy


GRI 302-1 Energy consumption within the organization √

GRI 302-2 External energy consumption √

GRI 302-3 Energy intensity √

GRI 302-4 Reduction in energy consumption √

GRI 302-5 Reductions in energy consumption of products and services √

Category Specific Basic Contents Indicator Description Exhaustive

Option Material Aspects Verification Reason for

omission

Environment

GRI 303 water

Dma Management Approach Dma √ Water Safety

GRI 303-1 Total water uptake by source √ √ GRI CDP Sector

Supplement 303 (2018) W1

GRI 303-2 Water sources that have been significantly affected by water uptake √ √

GRI CDP Sector Supplement 303

(2018) W1

GRI 303-3 Percentage and total volume of water recycled and reused √ √ GRI CDP Sector

Supplement 303 (2018) W5

Biodiversity GRI 304

GRI 304-1 Own, leased, managed operating facilities that are adjacent, contain or located in protected areas and unprotected areas of great value for biodiversity

√ Rain forest

GRI 304-2

Description of the most significant impacts on biodiversity of protected areas or high-value areas in terms of unprotected biodiversity arising from activities, products and services

√ Rain Forest

GRI 304-3 Protected or restored habitats √

GRI 304-4

Number of species included in the IUCN red list and national conservation lists whose habitats are in areas affected by operations, depending on the level of habitat of the species

√

Will present in the next memory.

GRI 305 Emissions

GRI 305-1 Direct greenhouse gas emissions (scope 1)


GRI 305-2 Indirect greenhouse gas emissions when generating energy (Scope 2)


GRI 305-3 Other indirect greenhouse gas emissions (Scope 3)


GRI 305-4 Intensity of greenhouse gas emissions


GRI 305 Emissions

GRI 305-5 Reducing greenhouse gas emissions


GRI 305-6 Emissions of ozone-depleting substances


GRI 305-7 Nox, Sox and other significant atmospheric emissions


GRI 306 Effluents and Waste


GRI 306-1 Total water discharge, according to its nature and destination √

Doesn't apply

GRI 306-2 Total weight of waste managed, depending on type and method of treatment √

GRI 306-3 Total number and volume of the most significant accidental spills

No cases

GRI 306-4

Weight of waste transported, imported, exported or treated as hazardous under Annexes I, II, III, VIII to the Basel Convention and percentage of internationally transported waste


GRI 306-5 Identification, size, state of biodiversity protection value of water bodies and related habitats significantly affected by spills and runoff from the organization

√

doesn't apply





omission SDG

Environment

Compliance Dma Management Approach

GRI 307-1 Non-compliance with environmental laws and regulations No cases 12

Environmental Assessment of

GRI 308 Suppliers


GRI 308-1 Percentage of new suppliers to be examined based on environmental criteria √

GRI 308-2 Significant, real and potential environmental impacts in the supply chain and measures in this regard. √

Society

Employment

GRI 401-1 Total number and rate of hires and average turnover of employees, broken down by age group, gender and region

√

GRI 401-2 Social benefits for full-time employees, which are not offered to temporary or part-time employees, broken down by significant activity locations

√ 8.5,8.7

GRI 401-3 Levels of return to work and retention after maternity or paternity leave, broken down by sex √

Relationships between

workers and management

Dma Management Approach Great Place To Work

GRI 402-1 Minimum notice periods for operational changes and possible inclusion of these in collective agreements Great Place To

Work

based on legal

compliance

Occupational health and

safety

GRI 403-1

Percentage of workers represented on joint formal health and safety committees for management and employees, established to help control and advise on occupational health and safety programs

√

GRI 403-2 Type and rate of injury, occupational diseases, lost days, absenteeism and number of job-related fatalities by region and by sex

√

Occupational health and

safety

GRI 403-3 Workers whose profession has an incidence or high risk of illness √ 8.5,8.7

GRI 403-4 Health and safety issues covered in formal agreements with trade unions √ 8.5,8.7

Training and Education

GRI 404-1 Average annual training hours per employee, broken down by gender and by job category


GRI 404-2 Skills management and ongoing training programs that promote employability of workers and help them manage the end of their careers


GRI 404-3 Percentage of employees receiving regular performance and professional development assessments, broken down by gender and by professional category


Diversity and Equal

Opportunities

GRI 405-1 Composition of governing bodies and breakdown of staff by professional category and gender, age, minority membership and other diversity indicators

√

GRI 405-2 Relationship between men's base salary relative to that of women, broken down by professional category and by significant activity locations

based on

legal compliance



omission Ods

Human

Non-discrimination

Dma Human rights

GRI 406-1 Discrimination cases and corrective measures taken No cases

Freedom of association and

collective bargaining

Dma Human rights Complaint system

GRI 407-1

Identification of significant centers and suppliers where freedom of association and the right to benefit from collective agreements may be infringed or threatened and measures taken to defend these rights

√ Complaint system 8.5,8.7

Child Labor


GRI 408-1 Identification of centers and suppliers with a significant risk of child exploitation cases and measures taken to contribute to the abolition of child exploitation

√ Will present in the next memory.

Forced Labor Dma Management Approach

GRI 409-1 Operations and suppliers with a significant risk of forced or compulsory labor cases. √

Security Measures


GRI 410-1 Percentage of security personnel who have received training on the organization's human rights policies or procedures relevant to operations

√ Will present in the next memory.

Indigenous population rights


GRI 411-1 Number of cases of violation of the rights of indigenous peoples and measures taken No cases

Human Rights Assessment


GRI 412-1 Number and percentage of centers that have undergone human rights impact reviews or assessments √ 8.5,8.7

GRI 412-2 Employees trained in human rights policies and procedures √ 8.5,8.7

GRI 412-3 Agreements and contracts with significant investments with clauses respecting HRDs √

Local Communities


GRI 413-1 Percentage of operations where development programs, impact assessments and local community engagement have been implemented

√ √ 1.1

GRI 413-2 Operations centers with significant negative effects, possible or real, on local communities √

Human rights supplier

assessment


GRI 414-1 Percentage of new suppliers examined based on social criteria √


GRI 414-2 Significant human rights impacts, real and potential, on the supply chain and measures taken √ FP1, FP2

Public Policy Dma Management Approach

GRI 415-1 Value of political contributions, by country and recipient doesn't apply





omission SDG

Product Responsib

ility

Customer health and safety

GRI 416-1 Percentage of categories of significant products and services whose health and safety impacts have been evaluated to promote improvements

√ FP5 2.1

GRI 416-2

Number of incidents arising from non-compliance with regulations or voluntary codes relating to the impacts of health and safety products and services throughout their life cycle, broken down by the type of outcome of such incidents

√ SEDEX-SMETA No cases

Tagging of products and

services


GRI 417-1 Type of information required by the organization's procedures relating to the information and labelling of its products and services,

√

Act according to

legal compliance

GRI 417-2

Number of breaches of the regulation and voluntary codes relating to the information and labelling of products and services, broken down according to the type of outcome of such incidents

√ No cases

GRI 417-3 Communications non-compliance incidents No cases 8.5,8.7

GRI 418 Customer

Privacy


GRI 418-1 Number of informed complaints about breach of privacy and leakage of customer data No cases

Compliance economic

partner GRI 419


419-1 Non-compliance with laws and regulations in socio-economic areas. No cases

Agrolibano GRI STANDARDS Materials Skin Table Option: Exhaustive

Material Appearance DMA

GRI STANDARD

Indicator Description SDG sectoral

supplement

Economic Value Economic Value Generated and

Distributed 201-1

1. Payment wages, 2. Taxes, 3. Local purchases, 4. Currency generation, 5. Foreign exchange savings, 6. Economic impact on GDP, 7. Investment in Research and Development

8, 17

Social Value Multidimensional Poverty Index 413-1

1. Child labor, 2. Decent work, 3. Volunteering, 4. Communities: handling complaints and conflicts

1, 2, 3, 4

Environmental value

Clean water and sanitation

303-1,303-2. 303-3

1. Water quality, 2. Water preservation, 3. Reforestation, 4. Habitat conservation.

2, 6 GRI-CDP 303-2018

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