sustainability principles and commitmentsterravia.com/terravia_sustainability.pdfas part of...

A P R I L 2 0 1 6

SUSTAINABILITY PRINCIPLESAND COMMITMENTS

I co-founded TerraVia with a college friend more than a decade ago with a clear goal in mind: to make

products that are better for people and the planet. Our founding ethos was to create a successful

company by tackling the world’s biggest challenges with better solutions. It was that simple.

It remains that simple. Even today, after more than twelve years and hundreds of millions of dollars invested

in product development, TerraVia is, at heart, a simple business. We make healthy and nutritious ingredients

and specialty oils by harnessing the power of algae – the mother of all plants and the Earth’s original oil

producer.

But as we know, just ‘doing it’ isn’t enough. We have to prove we’re doing it. We have to demonstrate to

our stakeholders that our products are healthy and safe and we must explain why they benefit the world.

This is what our sustainability effort is all about. This paper covers our entire operation, from sourcing

feedstock to manufacturing products. We have consulted numerous stakeholders, and will continue to

engage them and listen to their feedback.

Like our business, our sustainability program will continue to evolve as our business grows and with

continuous stakeholder feedback. This marks the beginning of TerraVia’s journey to share our efforts, report

on progress, and articulate our aspirations.

TERRAVIA SUSTAINABILITY | 2

Foreword – Jonathan Wolfson

As part of developing our sustainability program, TerraVia has met with over 50 groups, including non-profit

organizations, scientific groups, and trade associations. We would like to especially thank the groups below that

participated in our Stakeholder Roundtables and provided critical and constructive feedback to our sustainability

program:

The participation of these organizations in providing feedback to TerraVia does not necessarily indicate endorsement of

TerraVia’s sustainability program.

• Royal Society for the Protection of Birds

• UK Synthetic Biology Leadership Council

• UK Biotechnology and Biological Sciences

Research Council

• Union of Concerned Scientists

• The Woodrow Wilson Center

• World Wildlife Fund US

• World Wildlife Fund UK

• Daniel J. Evans School of Public Policy and

Governance, University of Washington

Acknowledgements

• Bonsucro

• Friends of the Earth EWNI

• Forum for the Future

• SYNENERGENE

(Karlsruhe Institute of Technology)

• National Wildlife Federation

• Natural Resources Defense Council

• The David and Lucile Packard Foundation

• Rathenau Instituut

• Roundtable on Sustainable Biomaterials


Contents2 Foreward

3 Acknowledgements

4 Introduction

Putting Principles Into Practice:

6 i. Transparency

7 ii. Environmental Impact

13 iii. Safety & Containment

15 iv. People & Communities

17 v. Regulation and Governance

19 Conclusion

FERMENTATIONTANK

Up To 85% Oil

The average wildalgae only has a5–10% oil content

OIL-PRODUCINGALGAE

More than a decade ago, our company was founded as Solazyme. We invested in developing a unique understanding

and expertise around algae to address some of society’s most serious challenges. In 2016, we transitioned to focus our

efforts exclusively on producing food, nutrition and specialty ingredients. To reflect this refined focus and strategic

direction, we renamed the company TerraVia.

T E R R A V I A ’ S A P P R O A C H T O S U S T A I N A B I L I T Y

At TerraVia, we work hard every day to bring our algae-based food and ingredients to market. Our closed fermentation

production process uses algae to convert a wide variety of plant sugars into nearly any kind of oil, food ingredients, and

other products.

We create products intended to address some of society’s critical environmental and health challenges. These include

providing replacements to palm and soybean oil, which threaten critical wildlife habitats when unsustainably produced,

and helping to address nutrition security with healthier oils and ingredients that help in making affordable and nutritious

food products.

O U R P R O C E S S A N D T E C H N O L O G Y

TerraVia works with algae, the Earth’s original oil producers and the foundation of all plant life. TerraVia’s manufacturing

process can produce a wide range of algae-based ingredients from a variety of plant sugar feedstocks at a single

manufacturing facility. Our algae are grown in the dark in contained stainless steel fermentation tanks, like those used

to make beer and wine.

We have a diverse portfolio of ingredients and specialty oils. All of our products start with native algae strains. Some of

our products are made by simply applying the centuries-old technique of fermentation to algae to ensure a pure and

consistent, efficient and sustainable supply of our unique products. Thus, many of our oils and whole algae products are

made with native algae strains while others are made with the assistance of biotechnology.

Figure 1. TerraVia process for making oil and whole algae products

To make our products, we feed plant sugar and other nutrients to the algae and they grow full of oil and other nutrients,

such as protein and fiber, in the fermentation tanks. Then, we remove the algae from the tanks and dry them. For our

whole algae ingredients, we leave the algae dry and they remain in a powder form. To make our oil ingredients, the

dried algae are then pressed to release the oil, just like the process to make coconut or seed oils. The algae is separated

from the oil, which is then refined and there is no algae mass left in the final oil product.

None of the leftover algae material goes to waste. The remaining algae material is still full of healthy carbohydrates,

proteins and other micronutrients. It can be used in a wide range of products, including as a fuel source for energy

generation.

Introduction


SUGARCANE

CORN & STOVER

SUGAR BEET

SWITCHGRASS

FOREST RESIDUE

WASTE STREAMS

FLEXIBLE INPUT AQUACULTURE& ANIMALNUTRITION

FOOD

PERSONALCARE

MULTIPLEMARKETS

OIL FAMILIES

OLEIC

CAPRIC-LAURIC

MID-CHAIN

STRUCTURED LIPID

LONG CHAIN

PROTEIN RICH

LIPID RICH

WHOLE ALGAEPOWDERS

DOWNSTREAMPROCESSING

ALGAE

R E S P O N S I B L E I N N O V A T I O N

TerraVia makes a variety of algae-based oils and ingredients, some of which are made by applying the tools of

biotechnology used for decades to make cheese, vitamins and medicines. Where we do apply the technology, we use

standard genetic engineering techniques to improve or adjust the fatty acid profiles of the triglyceride oils the algae

already produce in order to deliver ingredients that provide specific health, performance, and environmental benefits.

We are an innovator in an important, emerging sector and we are conscious of the environmental and social debate

that surrounds the use of biotechnology to produce food and other materials.1 Biotechnology, engineering biology,

synthetic biology and other types of scientific innovation all have the potential to provide breakthrough solutions when

applied responsibly, with transparency and public engagement. TerraVia is working with policymakers, scientists, and

non-governmental organizations to promote good government oversight.

TerraVia believes in and is inspired by innovation. With a global population predicted to reach 9 billion by 2050, society

will need all kinds of solutions to produce enough food, clothing and shelter with fewer resources and with less

environmental and adverse social impacts. While many of these problems are exponential, many of society’s solutions so

far have been incremental. We must innovate and seek breakthrough solutions to meet these problems. This is the

foundation upon which TerraVia is founded. For many companies, this will enable them to rethink their supply chains as

they seek to create healthier and more sustainable products. We need many different solutions and we will need all

kinds of collaborations to make that happen.

Our Principles of Responsible InnovationWe have actively pursued input from stakeholders in the non-profit, public and private sectors in developing TerraVia’s

sustainability program and our Principles for Responsible Innovation.

We will be transparent and clear about our processes and technology

We commit to supply chain integrity and sustainability excellence

We will continuously work to achieve the highest safety standards for our processes and products

We will support progressive coalitions amongst corporate, government, NGO and academic sectors working

to achieve governance and regulatory frameworks that promote accountability

We support and will encourage dissemination of clear and broad consumer information for products that

enable informed consumer choice

We are open to rigorous dialogue and will regularly engage with and report back to stakeholders

We support the communities where we operate and do business


DEVELOPING BIOTECHNOLOGY RESPONSIBLY

1 There have been numerous initiatives to develop sustainability and responsibility principles for the biotechnology sector, including the 2010 US Presidential Commission for the study of bioethical issues, the UK's Nuffield Council on Bioethics 2012 report, Emerging Biotechnologies: technology, choice and public good, and the Forum for the Future 2013 report Sustainable Returns - Industrial Biotechnology Done Well, and EU Commission Initiative on Responsible research & Innovation http://ec.europa.eu/programmes/horizon2020/en/h2020-section/responsible-research-innovation

1

2

3

4

5

6

7

Transparency is central to all of our sustainability principles.

STAKEHOLDER CONSULTATION AND DIALOGUE

With so many breakthrough applications of biotechnology, how do we ensure that humanity benefits while developing

the technology responsibly?

To help understand and define TerraVia’s role and responsibility within the broader context, in 2014 we initiated a series

of external consultations with civil society organizations, scientific bodies and trade associations, in the U.S. and the EU.

Four independently facilitated Roundtables were held, the objectives of which were to seek feedback on, and input to,

the ongoing development of our sustainability program.

More recently, we also opened a dialogue with individual NGOs in the environmental, labelling and sustainable

agriculture sectors – supportive, neutral and critical – in order to better understand their expectations around consumer

information and transparency. We plan to build on this engagement, particularly in the area of consumer information

and product labelling, as we accelerate our move into food products and build our ingredients business. To date, we

have met with more than 50 non-profit organizations, foundations, government agencies, trade groups, and thought

leaders.

Additionally, we are open to engaging in other complementary initiatives, and have taken part in a number of forums

addressing the responsible development of biotechnology.

PUBLICATION OF DATA

One of the issues that has been raised most frequently by the stakeholders we have consulted is the need to publish our

data on safety related scientific studies and lifecycle analyses of our products. We have already published several of our

safety studies in the U.S. and Brazil, and plan to publish more as we develop new data. Additional information is

available through our various regulatory submissions. We are currently working on publishing our environmental safety

data in a peer reviewed journal. (Please see “Safety” section.)

We are also making public the product lifecycle analysis (LCA) of our oil and whole algae food products. These LCAs

measure the environmental impacts of producing our products. The LCA for our oil products is complete and the results

are described below. A summary is also available on our website. The results for the whole algae food products will be

shared publicly upon completion.

TRANSPARENCY ENVIRONMENTAL IMPACT

SAFETY andCONTAINMENT

PEOPLE andCOMMUNITIES

REGULATION andGOVERNANCE

i. Transparency


PUTTING PRINCIPLES INTO PRACTICE > TRANSPARENCY

i ii iii iv v

As we grow and expand our business, we will continue to engage stakeholders and

seek their input on the responsible development of our technology.COMMITMENT

We will publish our environmental safety data in a peer reviewed journal.COMMITMENT

P U T T I N G P R I N C I P L E S I N T O P R A C T I C E

TerraVia’s approach to implementing our principles are reflected in five primary areas:

TerraVia transforms renewable plant sugars into algae-based ingredients and specialty personal care oils.

Fundamentally, we take what the world has in abundance – plant sugars – to produce what society needs every day –

oil, protein and other nutrients.

The primary environmental impacts of making our products are from the sugar feedstock we use to feed our algae and

the energy used to power our production facilities. We evaluate our environmental impacts in two ways: 1) at the

product level - through product lifecycle analyses; and 2) at the operational level.

O U R P R O D U C T S

Independent lifecycle analyses (LCAs) provide us with a very important tool for assessing the embedded environmental

impacts of our products. They also help to inform our business decision-making around current and future feedstock

sourcing as well as where to locate potential new production facilities.

ALGAE OILS

Our largest oil production facility is the Solazyme Bunge Renewable Oils joint venture facility based in Orindiύva, Brazil.

The facility is capable of producing a range of oils and the same inputs are required for the different oils. The only

difference is the type of algae strain that is grown in the fermentation tanks. Thus, the LCA is similar for any oil produced

at this facility.

We asked thinkstep (formerly PE INTERNATIONAL) to conduct a comprehensive cradle-to-gate study of the algae oil

produced at the Solazyme Bunge Renewable Oils facility. The study also included a comparative analysis of algae oil

with other major commercial bio-based oils: palm and palm kernel, soybean, canola/rapeseed, olive, sunflower, and

tallow. The study is in conformance with ISO 14040/44 standards for Life Cycle Assessment (LCA) and was critically

reviewed by a third party panel of experts. The LCA demonstrates that oils produced at the Solazyme Bunge Oils facility

have a lower carbon and water footprint than nearly all major commercial bio-based oils. In a separate analysis looking

at land use efficiency (i.e., the amount of oil produced per hectare of feedstock), TerraVia algae oil production has one

of the highest oil yield per hectare compared to most major commercial plant oils.

ii. Environmental Impact


PUTTING PRINCIPLES INTO PRACTICE > ENVIRONMENTAL IMPACT

We are committed to communicating about how we make our products and what is in

them. Thus, we are engaged in numerous stakeholder dialogues to help inform how we

communicate this information to consumers.

COMMITMENT

CONSUMER INFORMATION

TerraVia recognizes that there is growing stakeholder support for labelling and for greater levels of consumer information

and transparency. We are committed to communicating with our consumers about how we make our products and

what is in them. The question for TerraVia is how do we do this effectively?

It is our firm belief that consumers have a right to know how their products are made and what is in them. We are

therefore seeking stakeholder input about consumer information and transparency. The input from this process will help

inform how we communicate product information with customers and consumers.

GREENHOUSE GAS EMISSIONS

The Greenhouse Gas (GHG) emissions associated with producing oil at the Solazyme Bunge Renewable Oils facility is

lower than nearly all other major bio-based commercial oils (see Figure 3). This low GHG impact is due to two primary

factors: 1) the low carbon footprint of the sugarcane feedstock and 2) the waste sugarcane material (bagasse) provides

all of the energy to power both the Bunge sugar mill and the co-located Solazyme Bunge Renewable Oil facility.

SUGARCANEWASTE

ALGAECONVERTS SUGAR TO OIL

FERMENTATIONTANK

AN IM AL N UTRITIO

N

CA RE

PERSONAL

FOOD

• AQUACULTURE •

HIGH QUALITYINGREDIENTS FOR

MULTIPLE MARKETS

EXCESS POWERTO GRID

SUGAR

ONSITEDOWNSTREAMPROCESSING

SOLAZYME BUNGE RENEWABLE

OILS FACILITY

BONSUCRO®

CERTIFIEDSUGAR MILL



Figure 3.

Source: thinkstep (2016), Cradle-to-Gate Study of Competing Bio-Based Oils. Third Party reviewed to ISO 1404/44 Standards. Includes land use change.

Figure 2.

kg CO₂ eq / kg oil

0 1 2 3 4 5 6 7 8

Carbon Emissions of Algae Oil Produced in Brazil Versus Major Commercial Bio-based Oils

Soybean Oil

Tallow

Palm Kernel Oil

Olive Oil

Palm Oil

Canola Oil

Sunflower Oil

Algae Oil (Sugarcane)



WATER CONSUMPTION

Oil produced at the Solazyme Bunge Renewable Oil facility requires less water consumption than most major bio-based

commercial oils (see Figure 4). The low water consumption is due to the fact that the sugarcane supply is rain-fed and a

contained fermentation process is used. Furthermore, much of the treated wastewater is placed back on the

sugarcane fields as “fertigation”.

LAND USE EFFICIENCY

Our Solazyme Bunge Renewable Oils facility can produce more oil per hectare of land converting sugarcane to algae

oil than nearly all other oil producing crops. Although palm oil has very similar yields, the devastating land use impacts of

expanding palm oil production over the past two decades have been well documented in some regions.2

Figure 4.

Source: thinkstep (2016), Cradle-to-Gate Study of Competing Bio-Based Oils. Third Party reviewed to ISO 1404/44 Standards. Includes land use change.

kg Water Consumed / kg oIl

0 20 40 60 80 100 25802560

Water Consumption of Algae Oil Production in Brazil Versus Major Commercial Bio-based Oils

Olive Oil

Sunflower Oil

Palm Oil

Palm Kernel Oil

Soybean Oil

Tallow

Canola Oil


2 May-Tobin, et al. (2012) Recipes for Success. Union of Concerned Scientists and Climate Advisers.

MT of oil/hectare

0 0.5 1 1.5 2 2.5 3 3.5 4

Source: Murphy, D. J. (2009). Global oil yields: Have we got it seriously wrong? AOCS. http://www.aocs.org/Membership/informArticleDetail.cfm?ItemNumber=1102FAO Statistical Databases and Technical Conversion Factors for Agricultural Commodities

Oil Yield Per Hectare


Palm

Canola

Sunflower

Palm Kernel

Soybean

Olive

Figure 5.

FEEDSTOCK - BRAZILIAN SUGARCANE

TerraVia’s current oil production takes

place in the São Paulo State of Brazil.

Around 90% of Brazil’s sugarcane

production is harvested in the

South-Central region, especially the

state of São Paulo, which accounts for

over 50% of Brazilian sugarcane

production. In 2009, the Brazilian

government launched the National

Agro-Ecological Zoning of Sugarcane

(ZAE Cana) initiative which sets out

strict policies guiding sugarcane

expansion and development. The ZAE

Cana policies define land suitable for

sugarcane production based on

environmental, economic and social criteria.

They do not allow sugarcane expansion into the

Amazon rainforest region (including previously

deforested areas) or into areas of high conservation

value (HCV). TerraVia respects these regulations and

expects rigorous compliance from its sugarcane suppliers.

Brazilian sugarcane used to produce our products in Brazil is

sourced through the Solazyme Bunge Renewable Oils joint

venture. The Solazyme Bunge Renewable Oils facility is

co-located with the Bunge Moema sugar mill which has been

Bonsucro® certified since 2011. We began manufacturing at the

Solazyme Bunge Renewable Oils facility in early 2014.



3 http://bonsucro.com/site/wp-content/uploads/2013/02/Bonsucro-Production-Standard-v4-01.pdf

Amazon Rain Forest

SugarcaneCultivation

Sources: NIPE-Unicamp, IBGE and CTC

Solazyme BungeFacility is located in the São Paulo area

~4,300 Km

~2,700 Km

O U R F E E D S T O C K S

TerraVia’s manufacturing process can use a variety of sugar feedstocks to produce oils and other algae-based

ingredients. This feedstock flexibility enables us to choose the optimal feedstock for any particular geography, while also

enabling us to produce a wide variety of oils and whole algae ingredients from the same manufacturing facility.

This input-output flexibility offers enormous potential, both commercially and for the sustainability aspects of TerraVia’s

technology. This means that we can locally source feedstock from the country in which our manufacturing facilities are

situated. Locally sourcing feedstock reduces the distance between producer and consumer. It also allows us to make

products in a diversity of regions.

Our goal is to integrate cellulosic derived sugar feedstocks into our supply chain (see below for more discussion on

cellulosics). However, until the logistics and conversion technologies for cellulosics become broadly commercially viable,

we are using two primary feedstocks: Brazilian sugarcane and dextrose derived from U.S. corn.

We understand that there is growing demand for plant sugars as societies look to transition to a low carbon, bioeconomy

where a wide variety of products will require plant sugars as a feedstock. It will be important to utilize the current stock of

plant sugars efficiently and consider future land use impacts. TerraVia is a member of the Roundtable on Sustainable

Biomaterials where we participate in global discussions and standard setting addressing these issues. The Roundtable on

Sustainable Biomaterials is an independent and global multi-stakeholder coalition which works to promote the

sustainability of biomaterials.

FEEDSTOCK - U.S. CORN

Our manufacturing facility in Peoria, Illinois, uses readily available dextrose (sugar). At targeted nameplate capacity, this

facility provides approximately less than 5% of our total production. U.S. corn-derived sugar is recognised to have a

relatively high GHG impact due to the carbon intensity of corn cultivation. As a result, we are currently exploring a

number of options for sourcing more sustainably grown feedstock for our U.S. operations. Options that we are looking at

include the potential use of offsets for sustainably grown corn as well as supporting the work being undertaken by

several non-profit organizations and farmers groups to advance the sustainability of food, fiber, and fuel production.

FUTURE FEEDSTOCKS - CELLULOSICS

Our mid-term goal is to integrate cellulosic derived sugar feedstocks into our supply chain. Sugars derived from

lignocellulosic feedstocks present an exciting opportunity to continuously lower the environmental impact of producing

algae oil and products.

We have been working on the use of cellulosic-derived sugars for more than five years, including research collaborations

with multiple entities and a major project in conjunction with the U.S. Department of Energy (DOE). To date, we have

produced oils using lignocellulosic sugars derived from multiple sources including switchgrass, forage sorghum, maple

wood pulp, sugar beet pulp, corn-stover, sugarcane bagasse, municipal green waste, and loblolly pine. As the first step

in our DOE project, we demonstrated the ability to scale up our production process using cellulosic sugars at commercial

scale in our Peoria facility where we have produced edible, healthy oils from inedible cellulosic material.

The speed at which we can transition to using cellulosic-derived sugars will depend on the development of commercial

logistics and conversion systems that we can bolt on to our production. This is coming, but it presents a significant hurdle

for our company to transition to cellulosic feedstocks.

We are, and will continue to engage partners, pursue commercial cellulosic technologies, and monitor developments in

cellulosic biomass-derived sugars. We will, where possible, play our part in helping to bring this potentially

game-changing technology to market.


COMMITMENT We will continue to explore options for sourcing more sustainably grown feedstocks

in the U.S.


We are working towards sourcing 100% of our sugar, from sugarcane, sustainably. COMMITMENT

To help ensure that we meet our commitments to sustainability and labor practices, Bonsucro® certified sugar is currently

being purchased and the process of securing certification against the Chain of Custody Standard for the Brazilian sugar

supply is underway. We are working towards sourcing 100% of our sugar, from sugarcane, sustainably. Bonsucro®

certification provides supply chain traceability to the farm level for the sugarcane feedstock.

TerraVia and Solazyme Bunge are members of Bonsucro®, a multi-stakeholder non-profit organization dedicated to

improving the sustainability of global sugarcane production and improving the lives of sugarcane workers. We are

conscious of the potential impact that feedstock supplies may have on the surrounding landscape, and on wildlife

habitats and species populations. The Bonsucro® Production Standard sets out economic, social and environmental

principles and criteria for achieving sustainable production of sugarcane.3 Specifically, Principle 4 in the Bonsucro®

standard addresses active management of biodiversity and ecosystem services. This includes preventing the cultivation

of sugarcane in areas of high conservation value or legally protected lands, as well as improving soil and water resources.

Our mid-term goal is to integrate cellulosic-derived sugar feedstocks into our supply chain.

We will continue to monitor developments in cellulosic biomass-derived sugars and will

help to bring this potentially game-changing technology to market.

COMMITMENT

O U R O P E R A T I O N S

TerraVia is taking steps to measure, manage and minimize all water, waste and GHG emissions from our directly

controlled operations. This covers our manufacturing site at Peoria, Illinois and our joint venture facility in Orindiύva, Brazil.

At Peoria, we have been implementing energy and water efficiency initiatives. These include:

• Recycling program for metal, cardboard, and other materials

• Reduced steam usage and installed pre-heat exchanger for the boilers to improve energy

• Automated lighting and use of more efficient ballasts.

• Reduced Water Usage For Fermentation Cooling:

- Implemented a “closed-loop” piping system that eliminated the use of ground water for cooling the two main

fermenters – saving millions of gallons of water per year.

• Reduced energy use through installing condensate pumps that reuses condensate water back into the boiler system.

- This is saving 3,500,000 btu’s per hour of heat. Over the course of a year, this is equivalent to saving the carbon

emissions caused by nearly 2 million vehicle miles driven a year.

Our joint venture facility in Brazil has a low carbon footprint due to the fact that waste sugarcane material (bagasse)

provides all of the energy to power both the sugar mill and the oil production facility. The Brazil facility can also feed

excess energy back to the grid.



We will work to measure, manage and minimize all water, waste and GHG emissions from our directly controlled operations.

COMMITMENT

O U R T E C H N O L O G Y

A primary aspect of our mission is to produce oils that provide significant health, functional, and sustainability benefits.

For example, an oil that can be a more sustainable alternative to palm oil or healthier food oils, such as oils with the

lowest levels of saturated fat. In order to make these oils, we apply the tools of biotechnology, including standard

genetic engineering techniques, to the algae to develop these oils. These are tools that have been used for decades to

generate important drugs, vitamins, foods, hygiene and household products that are broadly used and beneficial for

people. We may introduce one or sometimes a few genes from a plant with desired properties, or we might make only

modest changes to the algae’s existing genes, for example, by shutting off production of an undesired oil component.

All of our algae oils are standard triglyceride oils. And while certain of the algae have been optimized through genetic

engineering, there are no genetically modified organisms in the final algae oil. Similarly, while most cheeses do not

contain genetically modified organisms, over 80% of the cheese in the US and the UK include an ingredient (chymosin)

made with genetically modified organisms.

We make a variety of algae products, some of which are made without applying any genetic engineering technology.

Where we do apply the technology, we are working to improve or adjust the fatty acid profiles of the triglyceride oils the

algae already produce in order to deliver ingredients that provide specific health, performance, and environmental

benefits. Below is a summary of our commercial products and the technologies applied.

iii. Safety and Containment

PRODUCT

AlgaVia®

Protein

AlgaVia® Lipid Powder

AlgaWise®Oils

GENETIC ENGINEERING APPLIED

No

No

Yes3,4

FINALPRODUCTCONTAINSGMO

No

No

No

BENEFIT FOR PEOPLE

Whole algae protein powder is a vegan source of protein, fiber and micronutrients. Free of known allergens and gluten-free

Whole algae lipid

powder can reduce or replace eggs, diary fats, and oils. Free of known allergens and gluten-free

Highest levels of mono-unsaturated fats, that help maintain heart health, low levels of saturated fat, zero trans fat and high smoke point

PRODUCTIONPROCESS

StandardContained Fermentationand Drying

StandardContained Fermentationand Drying, Expeller Pressing and Refining

BENEFIT FOR PLANET

More protein produced per hectare of land than other common vegan sources1; low carbon and water footprint2

Low carbon and water footprint2

Lower carbon and water footprint than nearly all major commercial oils.5


Table 1. Summary of TerraVia nutritional products

1Assumes sugarbeet feedstock; Calculated from FAO and USDA Statistical Databases; Redefining Agricultural Yields: from tonnes to people nourished per hectare, Cassidy, et. al (2013); Proteins From Land Plants – Potential resources for human nutrition and food security, Li Day (2013)

2 thinkstep (2015) Cradle-to-Gate Assessment of Whole Algal Flour and Whole Algal Protein Products. Third Party Reviewed to ISO 1404/44 Standards

3 No antibiotic resistant markers are used4 Similar process used to make chymosin ingredient present in most US/European cheese5 thinkstep (2016), Cradle-to-Gate Study of Competing Bio-Based Oils. Third Party Reviewed to ISO 1404/44 Standards.

ORIGIN OF ALGAE STRAIN

A freshwater pond in theNetherlands

A freshwater pond in the Netherlands

A chestnut tree in Germany

S A F E T Y

TerraVia has carried out a number of environmental safety studies in line with the ethic of the Precautionary Principle –

where the burden of proof to show that our algae are not harmful sits with TerraVia. Our studies demonstrate conclusively

that, in the event of an accidental release, our algae are safe and benign to the environment.

All of our algae are Biosafety level 1 (BSL 1) organisms, and pose no or insignificant risks to human and animal health or

the environment. We have conducted extensive water and soil tests on both our native base strain algae, as well as

several genetically engineered algae strains. The genetically engineered algae do not live any longer than native algae

strains in the environment. These studies have demonstrated that the genetically engineered algae do not reproduce or

persist in the environment, there are no negative impacts on soil microbiota or water quality, and there are no adverse

effects on water microorganisms and earthworms. In addition, the algae only grow in the dark (thus, not capable of

photosynthesis) and do not contribute to algae blooms, which sometime occur from photosynthetic algae. Though

several of these studies are publicly available through regulatory filings, we are also currently working to make our safety

studies widely available through publication in one or more peer-reviewed journals.

C O N T A I N M E N T

As mentioned earlier, the algae are grown in contained fermentation tanks, similar to those used in making vitamin C or

beer fermentation processes, not in the open environment. All algae cells are inactivated after fermentation and no live

algae remain in the waste streams following production.

We have met and, in many cases, exceeded all of the regulatory requirements of both the U.S. EPA and the Brazilian

CTNBio (National Technical Commission on Biosafety) for how we handle and contain the algae. The EPA has reviewed

our safety studies submitted under the MCAN (Microbial Commercial Activity Notice) process and we have successfully

completed EPA review of four MCANs. This allows our algae to be used in commercial production. CTNBio has approved

several algae strains for manufacturing at the Solazyme Bunge Renewable Oils facility. In Brazil, CTNBio regulations are

consistent with the Cartagena Protocol on Biosafety to the Convention on Biological Diversity and its guiding principles

are based on the Precautionary Principle for environmental protection.


PUTTING PRINCIPLES INTO PRACTICE > SAFETY & CONTAINMENT

ORIGIN OF ALGAE STRAIN

GENETIC ENGINEERING APPLIED

No

No

Yes1,2

FINALPRODUCTCONTAINSGMO

No

No

No

BENEFIT FOR PEOPLE

Anti-aging compound, providing visibly reduced wrinkles and smoother looking skin

Skin Hydration, silky sensory feel, hair repair, hair frizz control

Depending on the type of AlgaPūr oil: skin hydration, odor stable formulations, increased lather; substitute for petroleum-based ingredients

BENEFIT FOR PLANET

Traceable, sustainable oil

A sustainable alternative to palm, palm kernel oil, and other commercial sources of oil3

PRODUCTIONPROCESS

StandardContained Fermentationand Drying

StandardContained Fermentationand Drying, Expeller Pressing and Refining

PRODUCT

Alguronic® Acid

GoldenChlorella®

AlgaPūr Oils™

Table 2. Summary of TerraVia specialty personal care products

A brook in Germany

A freshwater pond in the Netherlands

A chestnut tree in Germany

1 No antibiotic resistant markers are used2 Similar process used to make chymosin ingredient present in most US/European cheese3 thinkstep (2016), Cradle-to-Gate Study of Competing Bio-Based Oils. Third Party Reviewed to ISO 1404/44 Standards.

iv. People and Communities


PUTTING PRINCIPLES INTO PRACTICE > PEOPLE AND COMMUNITIES

COMMITMENT We will continue to meet, and strive to exceed, the standards and requirements for

containment of microorganisms everywhere we operate.

4 http://bonsucro.com/site/wp-content/uploads/2013/02/Bonsucro-Production-Standard-v4-01.pdf

It is important to our business that we have positive, mutually beneficial relationships with local communities, who are some

of our most important stakeholders.

Wherever TerraVia operates, we work to understand the impacts that our operations have, to practically engage with

community leaders, and to explore how we may best contribute, economically and socially, to community development.

These activities will differ depending on where our facilities or sourcing activities are located.

We recognize that many small-scale farmers, or other types of community-based food producers, face a wide range of

macro-economic and political pressures, which can often adversely impact their livelihoods. As a responsible company, we

seek to ensure that our operations and products do not add to these pressures, and we look to work with our relevant

stakeholders to mitigate these pressures where we can.

We are a young and emerging company. We are still learning about the sort of engagement our local communities expect

and need. But we have begun the journey, and we are committed to fulfilling our community responsibilities with their help.

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

We have a manufacturing and business operation presence in numerous locations including:

South San Francisco, California • São Paolo, Brazil • Peoria, Illinois • Orindiύva, Brazil

Our largest manufacturing operations take place in Orindiύva, Brazil at our Solazyme Bunge Renewable Oils joint venture.

Below is a summary of our activities to support our employees and the local community.

O U R E M P L O Y E E S

Our production operations in Brazil employ hundreds of local people, as well as support those who work to grow and

process the sugarcane feedstock. As mentioned earlier, the sugar mill that is co-located with the Solazyme Bunge

Renewable Oils facility has been Bonsucro® certified since 2011. The Bonscuro® certification has standards which must be

met that address the environmental, health and safety conditions for workers in the mill and farms that supply the mill.4

Outlined in Principle 2, these standards include criteria for providing a safe and healthy work environment, meeting

minimum wage requirements, and complying with international labor conventions.

In the event of an accident, we have strict standard operating procedures and containment facilities to ensure any spills

are controlled and contained. Our plants are designed with a perimeter of containment (e.g. walls or trenches). Any

material that is spilled or released is contained and washed into sumps, then sent to treatment tanks for inactivation.

In Brazil, the Solazyme Bunge Renewable Oils manufacturing facility is a “closed system” which means there are physical

containment mechanisms in place to prevent the release of live microorganisms. These containment mechanisms

include walls and berms around the facility, drains to wastewater treatment tanks, and exhaust treatment. CTNBio

inspected and approved the closed system production in July 2014.

COMMITMENT


PUTTING PRINCIPLES INTO PRACTICE > PEOPLE AND COMMUNITIES

We remain committed to working with local communities where we operate to strengthen these support programs.

At the Solazyme Bunge Renewable Oils facility, in addition to meeting all local and national employment laws, Solazyme

Bunge Renewable Oils provides employee benefits that support continuous career development and thriving families.

These benefits include:

• Health, dental and life insurance that exceeds that required by the Brazilian government

• Subsidized meals provided at the facility

• Evening transportation to and from work

• Continuous safety training and events

• Career development opportunities for all employees including skill development such as English language and

leadership training

C O M M U N I T Y

Solazyme Bunge Renewable Oils has been supporting a series of community investments in conjunction with Bunge

Foundation’s Program, Semear Leitores. The program was implemented with the local mayor and community members

to encourage reading and literacy among schoolchildren in the community around Orindiύva, where the Solazyme

Bunge Renewable Oils facility is located. The objectives of Semear Leitores are to offer knowledge and technical

support to develop libraries in local elementary schools, to provide new books and all of the infrastructure at the libraries,

to invest in teacher training, and to promote literary events to the local community. The program supports the Secretary

of Education’s work in the region.

With the success of the initial program in Orindiύva, other Mayors and community members requested programs for their

area. Solazyme Bunge Renewable Oils has invested in ten additional reading spaces in four municipal locations. The

project directly impacts over 5,000 early grade students and their families.

Solazyme Bunge Renewable Oils will continue to support education improvement in the region through teacher training

and the provision of literacy materials. Indicators will also be introduced to measure the educational impacts of the

program.

We are committed to the responsible development of biotechnology. This means complying with all regulations that

currently govern our sector, wherever we operate, and to engaging with stakeholders in enabling future oversight

frameworks to take account of, and anticipate, the fast pace of evolution in the biotechnology industry.

M I C R O O R G A N I S M S

U.S.

Research and Development

Research and development activities are regulated by the relevant federal, state, and municipal authorities in the U.S.

TerraVia operates under common biosafety protocols following the same standards and regulations that are applied to

university and company R & D laboratories working in biotechnology and pharmaceutical research.

Production

The US Environmental Protection Agency (EPA) has been regulating research, development and commercial activity of

microbial products of biotechnology since 1986. The US’s regulatory policy is governed by the Coordinated Framework

for Regulation of Biotechnology.5

In the case of novel genetically engineered microorganisms, this notification is called a Microbial Commercial Activity

Notice (MCAN). The MCAN review is intended to ensure that the EPA can adequately identify and regulate risks to

human, animal, and plant health associated with microbial products of biotechnology. TerraVia has conducted

numerous safety studies and EPA scientists conduct a risk assessment to ensure that the microorganism will not present

an unreasonable risk of injury or health to the environment. The EPA evaluates potential human health and

environmental hazard, as well as potential environmental, worker and general population exposure from manufacturing,

processing use and disposal.

TerraVia has worked closely with the EPA in its reviews of our organisms and products. We have met and, in many cases,

exceeded all of the regulatory requirements of the EPA and we have successfully completed EPA review of four

MCANs.6

BRAZIL

In Brazil, genetically engineered microbes are regulated by CTNBio. As mentioned earlier, Brazil’s regulations are

consistent with the Cartagena Protocol on Biosafety to the Convention on Biological Diversity7 which incorporates the

Precautionary Approach and reaffirms the precaution language in Principle 15 of the Rio Declaration on Environment

and Development.8 The Cartagena Protocol is the international agreement that aims to ensure the safe handling,

transport and use of living modified organisms resulting from modern biotechnology that may have adverse effects on

biological diversity, also taking into account risks to human health. It went into force in September 2003. Brazil is a

signatory of the Cartagena Protocol and ratified the agreement in February 2004.

CTNBio has approved several algae strains for manufacturing at the Solazyme Bunge Renewable Oils facility. View here

for the CTNBio approvals that are publicly available:

http://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?jornal=1&pagina=7&data=21/10/2013

http://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?jornal=1&pagina=16&data=25/08/2015

5 https://www.whitehouse.gov/blog/2015/07/02/improving-transparency-and-ensuring-continued-safety-biotechnology6 http://www.epa.gov/oppt/biotech/pubs/submiss.htm, Solazyme’s MCANs: J12-0003, J13-0030, J14-0017, J14-0020 7 http://bch.cbd.int/protocol/background/8 http://unesdoc.unesco.org/images/0013/001395/139578e.pdf

v. Regulation and Governance


F O O D P R O D U C T S

U.S.

Our food products are regulated as food ingredients in the United States by the U.S. Food and Drug Administration (FDA)

under the federal Food, Drug, and Cosmetic Act. The safety evaluations for any ingredient reviewed under the Generally

Regarded as Safe (GRAS) process are publicly available. We currently have four food ingredients with GRAS status in the

U.S. All have received a GRAS determination from a panel of scientific experts and a ‘no questions’ letter from the FDA.

AlgaVia® Lipid Powder

http://www.accessdata.fda.gov/scripts/fcn/fcnDetailNavigation.cfm?rpt=graslisting&id=469

AlgaVia® Whole Algae Protein

http://www.accessdata.fda.gov/scripts/fdcc/?set=GRASNotices&id=519

Two oils have received FDA no questions letters

http://www.accessdata.fda.gov/scripts/fdcc/?set=GRASNotices&id=527

http://www.accessdata.fda.gov/scripts/fdcc/index.cfm?set=GRASNotices&id=384

BRAZIL

AlgaVia® Lipid Powder is a whole algae product made from a native algae strain, which means the algae has not been

genetically engineered. The food regulatory agency in Brazil, ANVISA, has approved the use of AlgaVia® Lipid Powders.

The National Health Surveillance Agency or ANVISA (Agência Nacional de Vigilância Sanitária) is the Brazilian regulatory

agency that is responsible for the approval and supervision of food, cosmetics, tobacco, pharma and other products.

EU

The European Food Safety Agency (EFSA) reviews foods for suitability and safety and approve for use in the European

Union (EU). All new GE-derived foods are considered "novel" and subject to extensive, case-by-case, science based

food evaluation by the European Food Safety Authority (EFSA). The criteria for authorization fall in four broad categories:

“safety”, “freedom of choice”, “labeling”, and “traceability”.

Our native algae derived (non-engineered) Lipid Powder and Whole Algae Protein are currently allowable for food use

in the EU. An oleic oil that we produce is made with a non-modified Chlorella strain is considered “not novel” and is

currently allowed for food use in the EU.

Our high oleic algae oils are considered a novel food, and will require an evaluation to be approved for use in the EU.


PUTTING PRINCIPLES INTO PRACTICE > REGULATION AND GOVERNANCE


Our company mission is about helping make life better for people and the planet while building a responsible and

profitable business.

What TerraVia does is radically simple: we transform renewable, plant sugars into healthy, sustainable oils and ingredients

using algae. We aim to use what the world has in abundance (plant sugars) to produce what society needs every day,

with a lower environmental impact and in a compressed production time - from months and years to a matter of days.

This means we can produce oil and food ingredients in a diversity of geographies and seasons, tremendously improving

supply chain integrity and resilience in the face of changing climate conditions.

As our Sustainability program sets out, we aim to run our business and meet these goals in a responsible, transparent and

truly sustainable manner. We will report on progress and continuously update our commitments.

We think these are good things. We hope that you agree. We are at the beginning of this journey and welcome input on

the continuing development of our sustainability programs. Please contact us and join us on our journey.

Conclusion

sustainability principles and commitmentsterravia.com/terravia_sustainability.pdfas part of...

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