Sustainable Sourcing Policy Hazelnuts

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Sustainable Sourcing Policy Hazelnuts

Introduction The majority of hazelnuts are grown in Turkey where approximately 70% of the world s production occurs. The second biggest producer is Italy (about 12%), followed by Georgia, Azerbaijan and the United States. Barry Callebaut also sources a considerable volume of hazelnuts from Spain. Although hazelnuts feature many environmentally favorable attributes (i.e. they thrive with minimal maintenance; trees produce nuts on hilly and sloping terrain (in certain origins) and in marginal soil), there are also sustainability related challenges that need to be addressed. This policy is an integral part of our Sustainable Sourcing Policy for Ingredients and must be read in conjunction with it. Policy Framework An issue of utmost importance in hazelnut production (Turkey) is the elimination of child labor during the harvest season. To this end, we have joined a multi-stakeholder project by the International Labour Organisation (ILO), a specialized agency of the United Nations. The project is called Elimination of the worst forms of child labour in seasonal commercial agriculture in hazelnut harvesting in Ordu and the selected provinces of West Black Sea Region. This project aims to ensure conformity with international labor standards, including ILO conventions, in the Turkish hazelnut supply chain.

Sustainable hazelnuts principles Below we highlight some of the principles which in our view are the most important in creating a sustainable hazelnut sector. We ask all stakeholders to work towards their implementation by: Strongly condemning forced labor, slavery, human trafficking, and all practices that exploit children or expose them to harmful or hazardous conditions; Respecting the principles of ILO Convention No. 138, on the minimum age for admission to employment and work, and ILO Convention No. 182, on the worst forms of child labor; Providing school access to migrant workers children during the harvesting period; Ensuring healthy and safe labor conditions and providing decent living conditions for migrant workers; Promoting the use of good agricultural practices, including good environmental practices; Increasing the efficiency of water use, e.g. through trickle irrigation (where appropriate); Ensuring biodiversity preservation. In addition to these principles, we support the efforts of our suppliers towards traceability within the hazelnut supply chain.

Commitment In line with our goals to consistently work towards sustainable hazelnut sourcing we expect all suppliers to work towards the stated principles and to regularly show significant progress, at least on an annual basis. This will be evaluated based on our suppliers sustainability program results, reports and personal communication. We buy preferably from and will develop business with suppliers that help us work towards the principles stated above and show tangible progress in improving the sustainability of the hazelnuts we use. In case Barry Callebaut becomes aware of a supplier violating the stated principles, we will request the immediate implementation of corrective measures. Reporting We will provide regular updates of activities on our website (www.barry-callebaut.com/sustainability) and our annual Barry Callebaut Sustainability Report. This policy is effective immediately, 26 November 2015. Disclaimer This policy is the Company s general guideline and management reserves the right to apply different terms, as determined in management s sole discretion. This policy can be changed at any time, with or without notice by the company. Nothing in this policy shall apply to the extent it would be inconsistent with any applicable law Last updated January 12, 2016

Supplier Declaration We the undersigned hereby confirm that: We have received and taken due note of Sustainable Sourcing Policy Hazelnuts, status as January 12, 2016. We are responsible for being aware of all relevant laws and regulations of the country or countries in which our company operates. We will inform Barry Callebaut in case of conflict between provisions of the Barry Callebaut Sustainable Sourcing Policy Hazelnuts and any applicable laws or regulations in our countries of operation We will make aware as appropriate our relevant employees in relevant functions (e.g. sourcing, operations, value chain, quality, legal, among others), agents and subcontractors about the Barry Callebaut Sustainable Sourcing Policy Hazelnuts and ensure that they comply with the provisions therein We will observe and conform to the Barry Callebaut Sustainable Sourcing Policy Hazelnuts. We will provide upon Barry Callebaut s request relevant documentation supporting our compliance with the Sustainable Sourcing Policy Hazelnuts provisions. Please sign and complete the next page and return this Supplier Declaration as noted to Barry Callebaut Sourcing AG.

1 Supplier Declaration Sustainable Sourcing Policy Hazelnuts, status as January 12, 2016 DATE / SIGNATURE NAME (PLEASE USE BLOCK LETTERS) TITLE COMPANY EMAIL PHONE COMPANY ADDRESS Please return the signed and dated Supplier Declaration to: Barry Callebaut Sourcing AG Attention: Sustainability Manager Global Sourcing Pfingstweidstrasse 60 CH-8005 Zurich Switzerland Fax: +41 43 204 04 00 Email: oliver_von_hagen@barry-callebaut.com