Multiexport Foods Sustainability Report 2018 by multiexportfoods

CON T EN T S

01 OUR COMPANY

CORPORATE GOVERNANCE

FINANCIAL PERFORMANCE

SOCIAL PERFORMANCE

PRODUCTIVE PERFORMANCE

ENVIRONMENTAL PERFORMANCE

STAKEHOLDER ENGAGEMENT, MATERIALITY AND CONTACT

106

SOCIO-ENVIRONMENTAL INITIATIVES

09 GRI INDEX OF CONTENTS

116

MULTIEXPORT FOODS

MESSAGE FROM THE CEO

“WE UNDERSTAND

SUSTAINABILITY AS AN INTEGRAL PART OF THE BUSINESS WE DO, THROUGH HIGH STANDARDS OF BUSINESS AND ETHICS.

DE AR STAK E HO LDE RS It is very gratifying to present our second Sustainability Report, which corresponds to the financial year of 2018, a year in which the company’s operations reported a good performance. All of this was accompanied by increasing demand and stability of salmon prices in the main markets, which allowed us to confirm the financial stability of the company and the industry, with very positive results during the year. We understand sustainability as an integral and principal part of our business, which we have developed with high productive, corporate and ethical standards, all of which contribute to the development of the environment in which we operate. This is why we are celebrating some milestones reached in this period, in particular having harvested almost 82 thousand tons, with a good level of productivity and a 30% decrease in the consumption of antibiotics. As a result, our Coho salmon was certified as free of any type of treatment for the third consecutive year.

From another perspective, we would like to make a special mention of the launch of our operations in the Magallanes region, with the creation of a great team that has made it possible to develop excellent productive performance. Furthermore, this confirms our clear leadership in the production of smoked salmon and value-added products; at the start of the year we launched, with great success, our new line of smoked products, Latitude 45®, which are aimed at the North American market. In 2018, the company carried out important initiatives to advance our long-term strategic plan, in which we would like to highlight the design and implementation of our new organizational structure. It has redefined the focus, functions and facilities of the Human Resources, Information Technology and Legal Departments, and new units have been added both to the value chain and to those areas that support it. Among them are Sustainability and Corporate Affairs Management, Value Added Business Unit

Management, Marketing Sub-management, and General Comptroller and Asian Market Management (based in Hong Kong). These changes continue to create value for the company and its stakeholders. In this report you will find various indicators, both financial and productive, as well as those regarding labor, safety, social aspects and the environment, which not only give an account of the materiality analysis carried out, but also how we put our objectives into practice to minimize the effect and trace of our daily activities. In addition, we want to give an account of our day-today commitment to the sustainability objectives of the United Nations for 2030, as we understand the way Multiexport can contribute in this regard. For 2019 we will focus on three pillars of our strategic plan. Firstly, we will continue with our Orientation towards the modernization of our companyâ&#x20AC;&#x2122;s management and operations, with the purpose of helping it every

day to become a more sustainable, more innovative and closer-knit company, building a better reputation, so it can become the pride of all our employees, shareholders, and stakeholders. The end of salmon smolts production in the lakes of Chile in the year 2020 is an important part of this pillar. Along with this, a second core idea in our work for 2019 is the execution of a marketing plan with initiatives aimed at working on image, reputation, brands and products, both within the company and at the industry level, together with maintaining organic growth in the current legal context.

ANDRĂ&#x2030;S LYON LABBĂ&#x2030;

CEO Multiexport Foods

This report has been prepared in accordance with Global Reporting Initiative (GRI) Standards. The information contained in this report relates to Multiexport FOODS S.A., and all its affiliates. CON TAC T

If you have any doubts or suggestions, we invite you to take part in our continuous process of improvement process by contacting us at the following email address: sustainability@multiexportfoods.com Francisco Lobos Sustainability and Corporate Affairs Manager. flobos@multiexportfoods.com This document is presented in digital format on our website www.multiexportfoods.com ART AND DESIGN

www.cinceldesign.com MarĂa Teresa PĂŠrez O. Francisca Mandiola J. PRINTING

Ograma digital

SUSTAINABILITY REPORT 2018

O U R CO M PA N Y

MULTIEXPORT FOODS

STRATEGY MISSION Feed the world with superior quality products, satisfying the needs of consumers through efficient business management based on people, innovation, caring for our environment and maintaining good relationships with our local communities.

VISION Become one of the most important aquaculture companies in the world; be recognized for the quality of its products, its passion for innovation, the profitability of its operations and its high sense of social responsibility.

VA L U E S Quality: Our processes and products are made with the highest quality and safety standards available in the market. Commitment to Our People: We deeply value the personal, familial and professional development of our people, providing them with the skills, work environment and necessary opportunities to make them happier, more productive and more committed to their work. Social Role: At Multiexport Foods, the company is conceived as an extension of man and as a privileged instrument to contribute to the development of society. Passion for Innovation: Only innovation and continuous improvement leads us to excellence, and that has always been our goal. Market Orientation: We listen carefully to the needs of the market in order to offer the best value in a timely manner. Likewise, we pay constant attention to our clients in order to provide an optimal quality of service before and after the sale. Ethical Conduct: We act with professionalism, moral integrity, loyalty and deep respect for people. Our work is governed by the principles of humanism.

MULTIEXPORT FOODS

INTEGRATED POLICY QUALITY, ENVIRONMENT, HEALTH AND OCCUPATIONAL SAFETY, SUSTAINABILITY AND FOOD SAFETY M U LTIE XP O RT FOO DS S . A . , through its affiliates, defines the production processes, processing and marketing of salmon, a food that is considered of superior quality. These processes must be framed within sustainable and ethical behaviors, and intimately connected to the company’s safety, Quality, and Social Responsibility, which is expressed through care and preservation of the Environment, Biodiversity and Secure Labor Practices. In addition, we consider ourselves to be advancing towards Excellence, to the extent that we are increasing the level of client satisfaction and expectations, and maintaining high standards of Food Safety and product specifications. We also continuously improve productivity indexes and pursue efficiency in the use of resources by implementing new farming and processing strategies; we have gained awareness and applied this to all our processes for prevention of pollution, in line with our respect for the Environment and Biodiversity; we recognize that our productive goals should be reached while paying special attention to the Occupational Safety and Health of our workers. This is why we assume the commitment to implement a Sustainable Improvement Process, which is continuous, participatory and multidisciplinary, in which each of the members of the organization, through a preventive attitude, become the primary promoters of Safety, Quality, Preservation

ANDRÉS LYON LABBÉ

CEO Puerto Montt, April 3rd, 2018

of the Environment and Safety, and individual and collective Occupational Health. Along with this, we assume the commitment to comply with the applicable legislation in aspects such as Food Safety, Quality, Environmental, Food Defense, Safety and Occupational Health, by voluntarily assuming the following standards: ISO 9001, BRC, IFS, ISO 14001, OHSAS 18001, GLOBALG.A.P., BAP-GAA, ASC Salmon Standard and Marine Steward-ship Council (MSC).

Our company

”

SUSTAINABLE AND ETHICAL BEHAVIOR, INTIMATELY CONNECTED TO THE COMPANY’S SAFETY, QUALITY AND SOCIAL RESPONSIBILITY.

MULTIEXPORT FOODS

SUSTAINABILITY STRATEGY Multiexport Foods aims to feed the future by taking care of the world; the Corporate Governance of the organization is accountable for the conscience and responsibility for sustainably developing salmon farming, considering social welfare and caring for natural resources. The company carries out ethical business practices, responsible marketing and open

communication with stakeholders. Multiexport has integrated sustainability into its business policy and strategy, with the aim of generating greater benefits for all the members of the value chain and to society in general. This has been achieved by minimizing negative impacts and strengthening positive impacts

PILL ARS OF OU R SUSTAINAB LE APPROACH

COR P OR ATE G OVE R NAN CE

• • • • •

Business Ethics Risk Management Corporate Strategies Compliance with Regulation Communication

GOVERNMENT

02 03

B USI N E SS

• • • • • • •

Increasing Demand Responsible Farming Productivity Attractive Investment Supply Management Organic Growth Technologies

PRODU C T

• • • • •

Nutritional Attributes Traceability Food Safety Product Development Marketing Strategies

CLIE NTS • Development of Relationships • Satisfaction • Transparency

Our company

”

ENVIRONMENTAL

MULTIEXPORT FOODS AIMS TO FEED THE FUTURE, CARING FOR THE WORLD.

E NVI RON M E NT

• • • • • • •

Health Strategy Welfare Biodiversity Fish Escapes Control of Environmental Impacts Waste Management Climate Change Strategy

SOCIAL

06 07

COM M U N ITI E S

• • • •

Shared Value Presence and Dialogue Transparency Local Suppliers

PEOPLE

• • • • • •

Code of Conduct Occupational Healthy & Safety Attractive Source of Employment Integrity Talent Management Research and Innovation

MULTIEXPORT FOODS

SUSTAINABILITY IS OUR BUSINESS FUNDAMENTALS

G LO BAL P RO D U C TIO N O F FAR M E D SALM O N AN D PR I MARY P RO D U C TS , M E A S U R E D I N M I LLI O N S O F TO N S

FARMED SALMON

CHICKEN

3,2

107,1

1,2-1,4

1,7-2,0

68 %

46 %

FE E D CO NVE RS I O N R ATI O (FCR)

Measures the productivity of the different protein methods. Represents the kg of food necessary to increase the body weight of the animal by one kg.

E D I B LE P O RTI O N ( Y I E LD)

The edible portion is calculated by dividing the edible meat by the total body weight.

N UTR ITIO NAL CO NTR I B UTIO N O F TH E P ROTE I N SO U RCE

• 0,32 Fat (g) • 2,79 Cholesterol (g) • 0,09 Omega 3 (g)

E NVI RO N M E NTAL I M PAC T Farmed salmon

Kg CO2 / kg of edible meat.

WATE R CO N S U M P TIO N

Lt / kg of edible meat.

Source: FAO, https://globalsalmoninitiative.org/

2,9 1.400

• 0,35 Fat (g) • 3,42 Cholesterol (g)

3,4 4.300

Our company

PORK

BOVINE

OVINE

118,2

66,0

9,3

2,7-5,0

6,0-10,0

NO DATA

52%

42%

• 0,34 Fat (g) • 2,78 Cholesterol (g)

5,9 6.000

• 0,86 Fat (g) • 3,73 Cholesterol (g)

30,0 15.400

38 % • 0,32 Fat (g) • 3,19 Cholesterol (g)

NO DATA NO DATA

Despite all these attributes, Multiexport recognizes that the process continuously generates performance and socio-environmental challenges which must be managed in a responsible way, through sustainable industrial operations and high ethical standards.

MULTIEXPORT FOODS

SALMON BUSINESS VALUE CHAIN

G E N E TIC S AN D R E PRODUC TION

FR E SH WATE R B R E E DING

SE A WATE R G ROWIN G

PROCE SSIN G

ADDE D VALU E

SALE S AN D DISTRIB UTIO N

MULTIEXPORT FOODS

SALMON FARMING CYCLE GENETICS AND REPRODUCTION

FRESH WATER BREEDING FRY

SMOLTIFICATION

SEA WATER GROWIING

HARVEST

ATLANTIC SALMON

2 months

4 months

7 months

14-18 months

Total 27 - 31 months

COHO SALMON

2 months

3 months

4 months

9 months

Total 18 months

The supply chain is structured based on the efficiency of each of the stages, from the reproduction in fresh water to the harvest in sea water. This also includes the added and sales value, where the processed and smoked products stand out. In this way, each stage is designed to operate auton-

omously but in a coordinated manner, in order to maintain the focus of the business, facilitating its management within the company. The business units are supported by Administration and Finance Management, Sustainability and Corporate Affairs, IT, and Human Resources.

Our company

FRESH WATER It includes the following productive stages: 1. Genetics and Reproduction

2. Fresh Water Breeding

The production of eggs represents the first stage of the productive cycle (through reproduction). Our company has a genetic selection program for its reproducers, which are checked individually to comply with all sanitary and farming conditions. The production of eggs comes mainly from our own breeding stock, all of which are kept in fresh water installations on land throughout their productive cycle.

Breeding in fresh water includes incubation, fry and smoltification. Multiexport Foods has cutting-edge technologies on its hatcheries that allow us to reuse and re-circulate the water used in them (70 to 97%). This creates better control of the variables of production and more sustainable environmental management. In 2008, Multiexport Foods started a project for the fast transfer of all of its breeding sites in fresh water to land-based hatcheries. Thanks to this, all the Atlantic salmon and a significant part of the production of Coho salmon in the freshwater breeding phase is carried out exclusively in land-based hatcheries. These facilities are equipped with high bio-security standards in order to decrease the risk of diseases, especially the ISA virus.

SEA WATER This is the division responsible for farming fish in seawater. The fish farming process starts with an approximate weight of 150 grams, until its harvest at commercial size, which will depend on the species that is being farmed (3.0 kg for Coho Salmon or 5.0 kg for Atlantic Salmon). The operations of this division are developed in facilities located in the X, XI and XII Region, which operated 52 production sites during the year 2018.

The current production model distributes the Chilean production of salmonids geographically in 61 concession groups (ACS) for the X, XI Region, and 21 ACS for the aquaculture work in the Magallanes Region. To date, Multiexport Foods has 106 seawater concessions, located in 25 different neighborhoods, or ACS, which allows us to guarantee and optimize the continuity and efficiency of our productive operations.

MULTIEXPORT FOODS

GEOGRAPHICAL LOCATION AQUACULTURE CONCESSIONS Multiexport Foods has 106 seawater concessions, located in 25 different neighborhoods, or ACS, which guarantees and optimizes the continuity and efficiency of its productive operations. The 2018 operations were carried out in 47 production sites in the regions of Los Lagos, Aysén and Magallanes.

RIVER AND LAKE CONCESSIONS

SEA CONCESSIONS

LOS RÍOS REGION

12 , 25 hec tares

LOS LAGOS REGION

1 6 hec tares

23 8 ,14 hec tares Multiexport: • 23 concessions • 10 neighborhoods Industry: • 24 neighborhoods

AYSÉN REGION

612 ,47 hec ta res Multiexport: • 76 concessions • 13 neighborhoods Industry: • 38 neighborhoods

MAGALLANES REGION

69, 95 hec ta res Multiexport: • 7 concessions • 2 neighborhoods Industry: • 22 neighborhoods

Our company

”

THE 2018 OPERATIONS WERE DEVELOPED IN 47 PRODUCTION SITES IN LAGOS, AYSÉN AND MAGALLANES REGIONS.

MULTIEXPORT FOODS

”

MULTIEXPORT FOODS HAS 106 SEA WATER CONCESSIONS, LOCATED IN 25 DIFFERENT NEIGHBORHOODS, OR ACS, WHICH ALLOWS US TO GUARANTEE AND OPTIMIZE THE CONTINUITY AND EFFICIENCY OF OUR PRODUCTIVE OPERATIONS.

Our company

MULTIEXPORT FOODS

PROCESSING The Processing Division is in charge of adding value to the feedstock in all its forms, including the companyâ&#x20AC;&#x2122;s smoked products, which include its own and those of third parties. The objective of the Processing Division is to ensure the timely implementation of production plans, complying with all environmental standards, safety, quality, hygiene and minimum costs of transformation. In this way, they maximize the return of raw materials in line with commercial guidelines. The Processing Division has a management and administration system that allows it to coordinate the Processing areas with the Farming, Commercial and Added Value Divisions. All of this is done to adhere to the requirements of the final clients, with a high standard of service. Multiexport Foods has two processing plants located in the city of Puerto Montt, which are managed by this division: one is dedicated to the elaboration of fresh and frozen products, and the other smoked products. Together, they have a processing capacity of 85 thousand tons per year. This Division is responsible for managing the processing of salmon in external plants (when the plant exceeds its installed capacity). It is also responsible for providing other processing services for other producers when there is surplus capacity available. This is how during 2018, 71.5 thousand tons of salmon were processed in the plants of Multiexport Foods; an additional 11.8 thousand tons were processed in external plants, reaching a total of 83.3 thousand tons of salmon material in the Processing Division.

The traditional ISO 9001, ISO 14001, OHSAS 18001 certifications are combined with the BRC and IFS standards, which assure clients and consumers that the purchased product meets the most demanding food safety requirements. In relation to sustainability certifications, our plants were pioneers worldwide when they obtained the BAP sustainability certification (Best Aquaculture Practice) from the Global Aquaculture Alliance. This fills us with pride and reinforces our commitment in all stages of the value chain.

Our company

”

WE HAVE CERTIFICATIONS FOR QUALITY, SAFETY, TRACEABILITY AND SUSTAINABILITY.

Food

MULTIEXPORT FOODS

ADDED VALUE DIVISION (VAP) During 2018, in line with the strategic objectives of the company, the Value-Added Division (VAP) was created, whose main objective is the development and marketing of all types of products that are different from the traditional whole fillet formats. In this way, it looks to maximize the return of the feedstock, making the most of every kilogram of salmon harvested, through the implementation of new product lines that are at the cutting-edge and fit to the needs of consumers and the worldwide market. In this context, the VAP Division is responsible for continuing to expand the development and marketing of smoked products in a complete way. This is a business in which

“VAP’S PURPOSE IS TO

DEVELOP AND MARKET ALL TYPES OF PRODUCTS IN DIFFERENT FORMATS.

Multiexport Foods is the undisputed leader, with more than 15 years of success supplying the main retail chains of the United States and Japan. It also produces more than 70% of the smoked salmon exports from Chile. The company is at the forefront of development, innovation and sale of these products through efficient management and a consolidated team with solid experience. Likewise, for the 2018 period, we would like to highlight the successful performance of our Latitud 45° brand, which was developed specially for the United States market, and in its first year had sales of more of 300,000 pounds.

80°

MULTIEXPORT FOODS

SALES AND MARKETS 60°

40°

20°

0°

Multiexport Foods has an experienced staff, which has managed to establish solid relationships with the most important customers in every market. Our main export markets are the United States, Brazil, Japan, China and Russia, where valued-added products represent 43% of the total sales.

10°

In terms of the smoked food sector, Multiexport Foods again consolidates itself as the

biggest exporter of this market in Chile, with sales of more than USD 44.5 million in 2018. In 2018, Multiexport Foods registered total sales of USD 537 million. Meanwhile, the volume of products sold amounted to 82,850 tons of raw material, 10% higher compared to the 75,255 tons of last year. We are proud to dispatch more than 900 thousand portions of salmon on a daily basis from Patagonia to the rest of the world.

40°

SALE S ACCO R DING TO FO R MAT O F PRO DUC T M U LTIE XP O RT FOO D 201 8 (PE RCE NTAG E S E XPR E SSE D IN USD FOB)

1% 9%

PORTIONS & LOINS

SMOKED

30°

40°

47% FILETS

43%

50°

WHOLE AND/OR HG

60° 80°

60°

40°

20°

0°

Our company

0°

20°

40°

60°

80°

”

WE’RE PROUD TO DISPATCH MORE THAN 900 THOUSAND PORTIONS OF SALMON ON A DAILY BASIS FROM PATAGONIA TO THE WORLD.

0°

10°

40°

MAIN E XP O RT DE STINATIO NS O F M U LTIE XP O RT FOO DS IN 201 8 (PE RCE NTAG E S E XPR E SSE D IN USD FO B)

EUROPE

OTHERS

30°

RUSSIA

13% ASIA 40°

44% USA

16% 50°

JAPAN

17% BRAZIL 60° 0°

20°

40°

60°

80°

MULTIEXPORT FOODS

Our company

”

IN 2018, MULTIEXPORT FOODS RECORDED SALES FOR USD 537 MILLION. MEANWHILE, THE VOLUME OF PRODUCTS SOLD AMOUNTED TO 82,850 TONS OF SALMON, 10% HIGHER COMPARED WITH THE 75,255 TONS OF THE PREVIOUS YEAR.

MULTIEXPORT FOODS

CO R P O R ATE G OV E R N A N C E

Our company

MULTIEXPORT FOODS

CORPORATE ORGANIZATION Multiexport Foods S.A.

CORPORATE NAME

76.672.100-1

TAX ID

Open Stock Corporation

TYPE OF COMPANY

No. 979

REGISTRATION IN THE SECURITIES REGISTRY

Av. Cardonal 2501, Puerto Montt, Los Lagos Region

DOMICILE PHONE

(56-65) 2 483 700

FAX

(56-65) 2 483 701 http://www.multiexportfoods.com/

WEB PAGE

inversionistas@multiexportfoods.com

EMAIL ADDRESS

Multifoods

NEMOTECHNICAL CODE IN THE STOCK CHANGE

PricewaterhouseCoopers

EXTERNAL AUDITOR

MULTIEXPORT FOODS S.A. 76,626849%

SALMONES MULTIEXPORT S.A.

MULTIEXPORT PACIFIC FARMS S.A.

23,373151%

MIT-SALMON SPA. (Mitsui & Co. (USA), Inc.)

MULTIEXPORT FOODS INC. USA

ALIMENTOS MUTIEXPORT S.A.

99,99998897%%

99,9975%

0,00001103%

0,0025%

SOC. INVERSIONES ISLA VICTORIA LTDA.

CULTIVOS ACUÍCOLAS NACIONALES S.A.

99% 1%

100%

MULTIEXPORT PATAGONIA S.A. 99,99999212% 0,00000788%

CULTIVOS OTWAY S.A.

99% 1%

99,99%

SALMEX 2 SPA. 100%

0,01%

PRO PE RT Y AN D CO NTRO L On July 19th, 2007, Multiexport Foods S.A. was listed on the chilean stock market, issuing 178,149,840 shares among Chilean and foreign investors, equivalent to 15% of the company’s equity. In December 2010, a new capital increase was made for 223,000,000

shares. Currently, 65% of the property is in the hands of the controller group through different investment companies. As of December 31st, 2018, the subscribed and paid capital of Multiexport Foods S.A. is represented by 1,410,665,600 shares.

Our company

CORPORATE GOVERNANCE COMPOSITION

Alberto del Pedregal Labbé D I R E C TO R

Carlos Pucci Labatut

Business Administrator Universidad de Chile 6.604.969-8

Rubén Bascuñán Serrano

D I R E C TO R

Civil Engineer Pontificia Universidad Católica de Chile 6.474.225-6

Lawyer Pontificia Universidad Católica de Chile 8.108.412-2

José Ramón Gutiérrez Arrivillaga PRESIDENTE

Martín Borda Mingo

Civil Engineer Universidad de Chile 7.017.364-6

Hernán Goyanes García I N D E P E N D I E N T D I R E C TO R

D I R E C TO R

Economist Roosevelt University of Chicago, EE.UU 7.010.555-1

César Barros Montero D I R E C TO R

Public Accountant, Universidad de Buenos Aires MBA, University of California (UCLA), USA 48.082.143-2

Agricultural Engineer in Agrarian Economics Pontificia Universidad Católica de Chile. MA and PhD in Economics, Standford University, USA 5.814.302-2

Note: we accept the definition of Independent Director given by law No. 18,046 for open stock corporationwhose main characteristic is that they do not have any relationship with the company, the other companies of the group of which it is a part, its controlling entity or with the top executives of any of them.

MULTIEXPORT FOODS

BOARD DIVERSITY NUMBER OF DIRECTORS BY GENDER GENDER

NO.

NUMBER OF DIRECTORS BY NATIONALITY NATIONALITY

NO.

Men

Chileans

Women

Foreign

NUMBER OF DIRECTORS BY AGE RANGE AGE

NO.

NUMBER OF DIRECTORS BY SENIORITY TIME

NO.

<30 years

<3 years

30 - 40 years

3 - 6 years

41 - 50 years

6 - 9 years

51 - 60 years

9 - 12 years

61 - 70 years

> 12 years

> 70 years

Note: The average duration of the Multiexport Foods board is 10 years

Corporate governance

BOARD COMMITTEE The committee is composed by Mr. Hernán Salvador Goyanes, Alberto del Pedregal Labbé and César Barros Montero, who were elected in the board meeting of May 4th, 2016, where Mr. Rubén Bascuñán Serrano was appointed as secretary of minutes. • The Board Committee met 12 times during the year, with an average attendance of 92%. • Multiexport does not request that its Directors have a minimum attendance. • Multiexport does not restrict the number of boards in which its Directors may participate. • In accordance with our by-laws, Multiexport is headed by a Board of seven members, which are elected every 3 years by the Ordinary Shareholders' Meeting. Their positions last the same number of years, and may be renewed. The members of the Board elect the chairman for the same period and he may be re-elected.

The meetings of the Board Committee addressed the following subjects: • Quarterly financial statements presented by the administration. • Examining reports of external auditors, balances, financial statements and letters of internal control presented by PwC. • Proposing the external auditors and the risk rating agency to the board, after evaluating the proposals. • Reviewing the corresponding transactions with related parties. • Reviewing the remuneration system and compensation plans for managers and executives. Additionally, in the meetings of the Board Committee, they must review the following subjects: • Status and progress of the company’s essential risks under the ARCE method. • Corporate rules. • Reports of internal audits. • Other materials according to requirements that may come up periodically.

THE BOARD’S COMMITTEE GATHERED 12 TIMES DURING THE YEAR, WITH AN AVERAGE ATTENDANCE OF 92% OF ITS MEMBERS.

MULTIEXPORT FOODS

Corporate governance

PRINCIPAL EXECUTIVES AN D R É S LYO N L AB B É

R ICAR DO G R U NWALD AR AVE NA

JA SO N R . PAI N E

General Corporate Manager Civil Engineer, Pontificia Universidad Católica de Chile ID: 10,019,058-3

Commercial Manager Civil Engineer Pontificia Universidad Católica de Chile ID: 7,080,918-4

Manager of Multiexport Foods USA Technology Graduate in Aquaculture from the Florida Institute of Technology, MBA, University of Miami, United States.

G I N O MAN R ÍQ U E Z OSSAN DÓ N

FR AN CI SCO LO BOS F U E NTE S

RO D R I G O RO D R ÍG U E Z TE J OS

Corporate Finance and Administration Manager Business Administrator, Pontificia Universidad Católica de Chile MBA, Pontificia Universidad Católica de Chile ID: 10,626,204-7

Sustainability and Corporate Affairs Manager Marine Biologist, Universidad de Concepción MBA, Universidad Mayor ID: 13,623,808-6

Manager of Information Technology (IT) Computer Science Engineer, Pontificia Universidad Católica del Maule. Master’s degree in IT Management, IDE Spain ID: 10,021,849-6

P E D RO CO U R AR D D É L AN O

H I ROY U K I TAY U

IVÁN CE R DA ÁLVAR E Z

Farming Division Manager Civil Engineer, Universidad de Chile MBA, Tulane University, United States ID: 9,389,292-5

Planning and Corporate Strategy Manager Business Administrator, Waseda University, Japan ID: 24,402,759-8

Administration Manager Accountant, University de Concepción ID: 8,077,739-6

J O H N MATEO FLO R E S

G O NZ ALO VALD IVI E SO SOTO MAYO R

MARCE LO CI STE R NA S PEREIRA

Process Division Manager Civil Engineer and Master’s in Engineering Sciences, Universidad de Santiago de Chile ID: 11,863,124-2

Operations and Logistics Manager Civil Engineer, Pontificia Universidad Católica de Chile ID: 5,894,569-2

Human Resources Corporate Manager Business Administrator Pontificia Universidad Católica de Chile ID: 9,832

MAR TÍ N H E P P VALE NZU E L A

VAP Manager Civil Engineer, Pontificia Universidad Católica de Chile ID: 15,782,459-7

MULTIEXPORT FOODS

ORGANIZATIONAL STRUCTURE As of December 2018

B OARD

GENERAL MANAGEMENT

LEGAL COUNSEL

SUSTAINABILITY AND CORPORATE AFFAIRS MANAGEMENT

Environmental and Concessions Deputy Manager Marketing SubManagement

Community Relations SubManagement

FARMING MANAGEMENT

PROCESS MANAGEMENT

COMMERCIAL MANAGEMENT

Fresh Water Production Management

Plant and Operations SubManagement

Multexport Foods Inc. USA General Management

Production Management Chiloé – Puyuhuapi Zone Production Management – Cordillera Zone

Quality assurance sub-management Engineering SubManagement

Market Management Asia

Market Management Latam

Production Management – Melinka Zone

Market Management Russia and others

Production Management – Aysen Zone

Logistics SubManagement

ADMINISTRATION AND FINANCE MANAGEMENT

Administration Management Management Control SubManagement Supply SubManagement

Production Management – Magallanes Zone Operations and Logistics Management

TI MANAGEMENT

Health and Biosecurity SubManagement

Projects SubManagement

Food and Nutrition SubManagement

Operations SubManagement

Managing and Planning SubManagement

HUMAN RESOURCES MANAGEMENT

Human Resources SubManagement

VAP MANAGEMENT

MULTIEXPORT FOODS

S TA K E H O LD E R E N GAG E M E NT, M ATE R IA LIT Y A N D CO NTAC T

Our company

MULTIEXPORT FOODS

SUSTAINABLE DEVELOPMENT OBJECTIVES UNITED NATIONS ORGANIZATION We know it is our responsibility to achieve the Sustainability Goals of the United Nations. The operations of Multiexport Foods are in line with several of the 17 objectives, but for the purposes of the report we will focus on those that have the greatest impact.

â&#x20AC;&#x153;WE KNOW IT IS OUR

RESPONSIBILITY TO ACHIEVE THE SUSTAINABILITY OBJECTIVES OF THE UNITED NATIONS.

Stakeholder engagement, materiality and contact

2. Zero Hunger: The company helps to fulfill the objective through the responsible execution of aquaculture that provides food to the world in a continuous manner, thus satisfying a growing demand. 3. Health and well-being: Multiexport provides the world with sustainable and high-quality food, with the most complete protein that exists, and the only one that provides omega 3, vitamins and minerals, which are crutialelements for a healthy life. 4. Quality education: The company promotes links with different academic institutions of different scales, provides practice centers, integrates its operations within the community, and contributes through assistance, among others things. We also take care to provide solid knowledge to our workers. 5. Gender equality: 37.2% of our company is made up of women. We believe that this number should increase at all levels. A diverse workforce is the key to profitable growth. 8. Dignity of work and economic growth: We are known for maintaining an excellent work environment and a payment system well above the legal requirements. We are proud to contribute significantly to the economic development of the 3 southern regions of the country. 9. Industry, innovation and infrastructure: For us, innovation is a value, so we make room for the consideration of good ideas and their promotion within our teams. We have a permanent innovation platform for our workers, and we hold an annual innovation fair, to share these experiences with experts, suppliers, academia and the community in general.

12. Responsible production and consumption: We are focused on the sustainable exploitation of natural resources. As responsible players we verify the efficient use of critical resources and inputs. Likewise, we implement actions to minimize waste generation. 13. Action for climate: At Multiexport we have regular maintenance programs for our machines and equipment, in order to limit our emissions. Two years ago, we measured our carbon footprint and we are currently conducting a specific climate action strategy, with initiatives whose purpose is to improve control over the use of fossil fuels, reduce our footprint and favor the use of clean energies in our facilities. 14. Underwater life: We are aiming to decrease our dependence on fisheries to feed our fish. We also promote pre- and post-operation monitoring to quantify and manage any impact we may have on the aquatic environment. 17. Alliances to achieve objectives: The company favors association and collaboration. It actively participates in trade associations such as SalmonChile and the Asociaciรณn de Productores de Salmรณn y Trucha de Magallanes (APSTM), as well as in national and international initiatives, among which are: Global Salmon Initiative (GSI), Salmon Social Initiative, Global Salmon Sustainable Initiative (GSSI), Chilean Salmon Marketing Council.

MULTIEXPORT FOODS

Our company

MATERIALITY ANALYSIS We have created a priority analysis in line with GRI standards. The aspects of sustainability identified are based on the environmental, social and economic impacts that our stakeholders (external and internal) think Multiexport Foods can generate (both positively and negatively).

These aspects are also evaluated according to their impact on the long-term performance of the company. The materiality analysis is based on the application of a type of survey to different stakeholders. The evaluations of the stakeholders were organized by the corporate relations team.

MULTIEXPORT FOODS

I M P O R TA N T F O R S TA K E H O LD E R S

MATERIALITY MATRIX

8,0

7,5

7,0

6,5

I M PAC T O N L A N D S C A P E S 6,0 C E R T I F I C AT I O N S

I ND IGENOUS PEOPLES 5,5

D O N AT I O N S A N D C O N T R I B U T I O N S F R E E A S S O C I AT I O N

5,0 5,O

5,5

Stakeholder engagement, materiality and contact

SOCIAL E N V I R O N M E N TA L ECONOMIC C O R P O R AT E

BUSINESS ETHICS

FISH ESCAPE

L A B O R P R AC T I C E S

LO C A L E C O N O M I C I M PAC T

C O M M U N I T Y M A N AG E M E N T

A N I M A L W E L L B E I N G I M PAC T

C O M M U N I C AT I O N C H A N N E L S

E N E R GY E F F I C I E N CY

P R O F E S S I O N A L D E V E LO P M E N T

FOOD SAFET Y F O O D S U S TA I N A B I L I T Y USE OF DRUGS

T R A N S PA R E N CY

PRODUCTIVE PERFORMANCE BIODIVERSITY

S T R AT E GY

EMISSIONS

T R AC E A B I L I T Y N AT U R A L R I S K S

LO C A L D E V E LO P M E N T F I N A N C I A L I N D I C AT O R S

R E L AT I O N S H I P W I T H S U P P L I E R S

LO C A L S U P P L I E R D E V E LO P M E N T QUA LI T Y PROCESSES & PRODUCTS

C O M M E R C I A L M A N AG E M E N T

S U R R O U N D I N G A N A LYS I S

6,0

6,5

7,0

I M P O R TA N T F O R M U LT I E X P O R T

MULTIEXPORT FOODS

CONTACT WITH STAKEHOLDERS We engage with stakeholders through various initiatives and approaches. During 2018, our Sustainability and Corporate Affairs Management was created, a unit in charge of managing interaction with different stakeholders. In order to consolidate long-term relationships with our stakeholders, we generate environments for communication and dynamic dialogues. These slides offer a general description of some of them, highlighting the aspects that different stakeholders raise in dialogue with our representatives.

SHAR E HOLDE RS

CLIE NTS

Focus on the company: Interested in production results and long-term performance strategy, focusing on strategy, corporate image and risk management.

Focus on the company: Main focus put on the quality, safety and sustainability of food.

Initiatives from the company: We keep a fluid relationship with our shareholders through meetings and periodic reports.

Initiatives from the company: We strive to exceed the expectations of clients and to evaluate their satisfaction through different tools.

Communication channels: • Board Meetings • Annual Report and Financial Statements • Sustainability Report • Shareholders Meetings • Press Events

Communication channels: • Attention by Business Executives • Marketing Campaigns • Certifications • Client satisfaction surveys • Participation in Seafood Fairs • Sustainability Report

INVE STO RS

AUTHORITIE S

Focus on the company: Interested in the returns of investment.

Focus on the company: Concerned about the stability of the sector in the long term and the social environment.

Initiatives from the company: We strive to maintain a continuous and open dialogue with investors and fund administrators through the annual report, quarterly reports, essential releases and by having a direct channel of attention for investors. Communication channels: • Quarterly Financial Reports • Direct attention channel for Investors • Annual Report and Financial Statements • Multiexport Foods Annual Conference • Sustainability Report • Press releases

Initiatives from the company: We encourage open and transparent dialogue with the authorities. We participate in discussions on specific issues for the sector. Communication channels: • Meetings with Public Agencies • Public-Private Worktables • Inspections and Visits • Sustainability Report

Stakeholder engagement, materiality and contact

PROVIDE RS Focus on the company: Striving to satisfy the expectations of the company at all stages, meet objectives and achieve longterm relationships. Initiatives from the company: We look to generate a solid commitment with our suppliers and we support them so that they can reach the highest operational standard. We promote the timely payment of services and supplies, favoring a fair and healthy relationship. Communication channels: • Tenders • Regular Meetings • Trainings • Audits • Sustainability Report

E M PLOYE E S Focus on the company: Concerned mainly about knowing their objectives, achieving productive challenges and generating a great work environment. Initiatives from the company: The company seeks to understand the expectations of workers and support them in their development. There are several related initiatives with training and improvement of skills and abilities. The Administration regularly analyzes elements of the company culture and proposes actions to support it. Communication channels: • Emails • Strategic Alignment • Collective Bargaining • Corporate Magazine • Open Suggestions and Claims System • Internal and External Social Networks • Sustainability Report

O N G' S , LOCAL CO M M U N ITIE S , TR ADE ASSOCIATIO NS AN D ACADE M IA Focus on the company: Groups focused on caring for the ecosystems and quality of life surrounding our operations, sustainable fish production, animal wellbeing, public health and food security. Initiatives from the company: We focus our work on relationships of trust with organizations that seek to improve and contribute to the industry. We have participated in dialogues with different sectors regarding local development projects. Communication channels: • Meetings and Visits • Professionals dedicated to Connecting with People • Territorial Planning Discussions • Local Development Projects • Extension and Assistance Programs • Agreements with Educational Institutions • Salmon Social Initiative • Sustainability Report

MULTIEXPORT FOODS

P R O D U C TIV E P E R FO R M A N C E

Our company

MULTIEXPORT FOODS

PRODUCTIVE PERFORMANCE B.

A. BIGGEST SMOKED SALMON EXPORTER

SECOND ATLANTIC SALMON EXPORTER

70%

No. 2

of the country’s exports

D. HATCHERIES IN OPERATION IN 2018

SEA FARMS IN OPERATION IN 2018

“DURING 2018 WE DECREASED THE MORTALITY RATE OF OUR SALMON SPECIES COMPARED TO 2017.

Productive performance

E . SMOLTS HARVEST

F. HARVESTED TONS (WFE)

NO. HARVESTED SMOLTS

SPECIES

Coho salmon

3.147.200

Atlantic salmon

19.172.298

SPECIES

TONS

Coho salmon

10.182

Atlantic salmon

71.657 81.839

TOTAL

22.319.498

TOTAL

85,08% ATLANTIC SALMON

14,08% COHO SALMON

87,55% ATLANTIC SALMON

12,44% COHO SALMON

Stocks and crops biomass WFE tons 90.000 80.000 70.000 60.000 50.000 40.000 30.000

HARVEST (TONS WFE)

G. MORTALITY CLOSED CYCLE

SPECIES

2017

2018

Coho salmon

6,30%

4,53%

Atlantic salmon

8,20%

6,28%

BIOMASS EXISTENCE (TONS WFE)

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

20.000

MULTIEXPORT FOODS

H. USE OF VACCINES

100%

Smolts Vaccinated with Pentavalent Dose and LIVAC Vaccine

I. USE OF ANTIBIOTICS

30%

358 g/TON Produced (LFE)

As salmon farmers, we have the responsibility to protect the health and welfare of the fish we produce. Two years ago, Multiexport Foods defined a health strategy that seeks to reduce the use of antibiotics in a sustained manner. This is how the company managed to lower their use by 30% in the year 2018, when compared to 2017, and by 38% compared to the 2016 period. Concrete efforts in the Farming area allowed this considerable decrease, where the company also harvested, for the third consecutive year, all of its Coho salmon production free of antibiotics, an achievement certified by Sernapesca.

Our health strategy involves exhaustive and permanent veterinary supervision on site, with early detection of clinical conditions. The company only makes use of antibiotics to fight certain illnesses and always under prescription and strict supervision of a veterinarian, with a robust traceability system and pharmaceutical control of residues, assuring the total safety of the final product. Together with the above, Multiexport Foods supports the health strategy with the use of a genetic program using QTL SRS eggs, good-quality smolts 100% vaccinated against SRS, functional diets, injectable therapies, appropriate control of Caligus and predators, as well as fish handling with minimal stress, among other methods.

â&#x20AC;&#x153;THIRD CONSECUTIVE YEAR OF COHO SALMON PRODUCTION FREE OF ANTIBIOTICS AND ANTIPARASITIC DRUGS. Certified by Sernapesca

less than 2017

Productive performance

J. CALIGUS

SEA LICE COUNT

Graphic of Total Adults (Mobile and Ovigerous Females) 14 12 10 8 6 4

2013

2014

2015

Antiparasitic Baths

SPECIES

2016

2017

2018

Antiparasitic in Food

g API PER TON

SPECIES

g API PER TON

Atlantic Salmon

12.15

Atlantic Salmon

0,05

Coho Salmon

0.00

Coho Salmon

0.00

K. MATURITY (MONTHS)

14,6 8,7

DEC

NOV

OCT

SEP

AUG

JUL

JUN

MAY

APR

MAR

FEB

JAN

M. NO. WORKERS BY FARMING SITE

SALMON SALAR

COHO

HATCHERIES

SEA FARMS

L . COMPANY AVERAGE FCR

1,24

Kg of food supplied toreach 1 kg of salmon

Values consider workers on their shifts and breaks

MULTIEXPORT FOODS

N. CERTIFIED PRODUCTION VOLUME (TON)

2015

2016

2017

2018

Biomass Certified ISO 9001: 2015, ISO 14001: 2015, OHSAS 18001: 2007, BRC, IFS, MSC & GLOBALG.A.P. (CoC)

63.720

60.887

75.597

81.759

ASC Certified Biomass

14.998

9.890

6.170

BAP Certified Biomass

36.000

30.763

42.924

77.478

TOTAL

63.720

60.887

75.597

81.759

O. ANIMAL WELLBEING MODEL

VETERINARY VISITS PER SITE PER MONTH

VETERINARY PHYSICIANS THAT MAKE UP THE BIODIVERSITY STAFF OF MULTIEXPORT FOODS

13 CAGE VOLUME USE MAXIMUM DENSITY

98,2%

1,8%

Water

Fish

FREE OF THREATS

ANIMAL WELL BEING MODEL

FREE MOBILITY

Submerged protection and an area against predators.

Low diversity farming in all our facilities.

DISCOMFORT FREE

FREE OF PAIN AND DISEASES

The best farming sites. Handled with minimum stress.

Permanent sanitary surveillance. Active and preventives control measures.

HUNGER FREE Safe nutrition and functional in each development stage for a great performance.

F I N A N CIA L P E R FO R M A N C E

Financial performance

FINANCIAL INDICATORS INDICATOR

MM USD

Revenue

537

Ebitda

117

Ebit

Ebit/Atlantic Kg

1,15

Income

Leverage

0,53

Raw material sold (TON)

82.851

Place of exports Atlantic (USD) Place of exports total species (USD) Main markets (Countries)

Second place (371.091 million USD Infotrade) Third place (441.112 million USD - Infotrade) USA, Brazil, Japan, China, Korea, Russia

% Added Value

43%

Place of exports smoked products (USD) Smoked sales products (USD)

First place (44.5 million USD - Infotrade) 44,5 million USD (Infotrade)

â&#x20AC;?

DURING 2018 MULTIEXPORT FOODS HAD REVENUES OF 537 MM USD, AND AN EBITDA OF 117 MM USD.

E N VI R O N M E NTA L P E R FO R M A N C E

MULTIEXPORT FOODS

ENVIRONMENTAL PERFORMANCE A . CONSUMED FOOD (TON) 89,9% ATLANTIC SALMON

10,1% COHO SALMON

SPECIES

TONS FOOD

Coho Salmon

11.939

Atlantic Salmon

107.073

TOTAL 2018

119.012

C. % AVERAGE FISH FLOUR IN FOOD

% AVERAGE FISH OIL IN FOOD

9,2

5,4 1.3 kg of wild fish are needed to produce 1 kg of salmon

0.5 kg of wild fish are needed to produce 1 kg of salmon

D. ESTIMATED DEPOSIT ON THE SEA FLOOR

5.800 gC/M2/YEAR

Multiexport has determined the maximum benthic deposit in its different sea water sites, which range between 27 gC/m2/ year up to 5,800 gC / m2 / year. Various studies indicate that in the area of influence hypoxic or anoxic conditions and structure variation in benthic

communities are present under the cages, in sites considered sedimentary with 6,000 gC/m2/year (Keeley et.al., 2012) or 10,000 gC/m2/ year (Cromey et.al., 2002), and up to 15,000 gC / m2 / year (Keeley et.al, 2013) in sites considered dispersive.

Environmental performance

AQUACULTURE ENVIRONMENTAL REPORTS (INFAS) These correspond to the environmental monitoring received in the period required by the national aquaculture regulations, two of which are under the supervision of Sernapesca.

AEROBIC

ANAEROBIC

31 F.

8 G.

PHYTOPLANKTON MONITORING

VARIABLE MONITORING ENVIRONMENTAL FARMING

4.949

100%

samples analyzed during the period

of the sea farms of Multiexport possess real time oceanographic parametermeasuring technology

H. NEIGHBORHOOD OCEONOGRAPHY MODELING

12 The company has participated in the oceanographic modeling of 12 productive neighborhoods. This knowledge allows better planning of farming and management of biosafety.

INTERACTION WITH WILD FAUNA: NO INCIDENTS TO REPORT IN THE PERIOD.

MULTIEXPORT FOODS

J. USE O F WATE R . HATCH E RIE S (M 3 )

SITE

WATER SOURCE

2017

2018

% WATER RECYCLING

Chaparano

River

19.160.640

17.405.685

51%

Molco

River

15.438.092

11.797.052

38%

Molino de Oro

River

4.670.519

9.753.997

Pto. Fonck

Well

30.767

49.787

97%

RÃo Negro

River

15.066.631

14.682.807

54.366.649

53.689.328

TOTAL

677.321

DIF NO.

1,2%

DIF %

Reduction of 1.2% in water consumption in Hatcheries (Kpi: 5% reduction to 2020, 2017 record)

1,2

REDUCTION IN WATER CONSUMPTION IN HATCHERIES.

Environmental performance

K . USE O F WATE R PROCE SSING PL ANTS (M 3 )

April

32.835

36.314

May

35.232

30.697

June

32.672

37.383

July

36.510

34.322

August

33.042

35.138

September

31.511

33.259

October

35.210

37.214

November

33.131

36.051

December

39.316

36.019

415.739

423.852

TOTAL DIF NO.

8.113

DIF %

1,9%

1.9% reduction in water consumption at plants (Kpi: 5% reduction to 2020, 2017 record)

2017

2018

1,9

REDUCTION IN WATER CONSUMPTION AT PLANTS.

DEC

35.111

OCT

35.272

NOV

March

SEP

35.583

JUL

35.686

AUG

February

JUN

36.761

MAY

35.322

APR

January

m 3 /TON of water Processed

FEB

2017 (m 3)

MAR

2018 (m 3)

JAN

MONTH

MULTIEXPORT FOODS

L . WASTE MANAGEMENT Farming Waste Generation (TON)

Farming Recycling Management (TON)

2.000

333% increase in recycling 150

1.500

1.000

120

500

RESPEL

DEC

NOV

SEP

OCT

JUL

2017

AUG

JUN

APR

MAY

FEB

For the last 3 years, Multiexport Foods has been developing a sustainable initiative called Zero Waste to Landfill in the processing plants of Puerto Montt, with the purpose of extending this project to farming sites in a future second stage.

MAR

RECYCLING MANAGEMENT

JAN

SLUDGE

INDUSTRIAL

DOMESTIC

90 0

2018

The project seeks to reduce, recycle and reuse waste, changing the paradigm of producing, using and throwing away. This is in line with the Responsible Consumption required by the Sustainable Development Goals established by the UN for 2030.

The plan is to send zero waste from the processing plants to landfills by the year 2020. As a reference, in 2018, the company sent 711 tons of waste to the landfill, decreasing the figure by 40.6% compared to the 1,197 tons sent in 2017.

Waste Destination (TON)

Evolution of tons sent to the landfill 3500

5,0% Landfill

3048

2000 1409

1750

1197

711

500 0

95,0% A3R

2015

2016

2017

2018

Environmental performance

2017

2018

The initiative has been executed in three stages by the company: diagnosis, implementation and continuous improvement with respective monitoring. During the process, the workers were trained, new protocols were created, and the waste segregation and recycling areas of the Cardonal plant were expanded, all equipped with the relevant signage. Likewise, more exterior storage units were added to the Cardonal plant. They comprise closed modules to avoid being affected by the constant rain in the southern part of the country.

2017

DEC

NOV

SEP

OCT

JUL

AUG

JUN

APR

MAY

FEB

DEC

NOV

SEP

300

OCT

300

JUL

600

AUG

600

JUN

900

APR

900

MAY

1.200

FEB

1.200

MAR

1.500

JAN

1.500

MAR

Processing Recycling Generation (TON)

JAN

Farming Recycling Management (TON)

2018

Specifically, three types of residues were segregated: inorganic, organic and non-reusable. For this, the company chose new providers, such as Limpiando el Sur, which recycles scrap metal; Coactiva, which works with low inputs; Rilesur, which treats organic sludge to create compost; Reprotec, which converts used oils; and Green Spot, which handles plastics. Furthermore, with Resiter, we manage recyclable and non-recyclable elements, using three machines installed in the Cardonal plant to segregate them, and we manage organic waste with Fiordo Austral.

MULTIEXPORT FOODS

Type of waste and destination 10,0% Industrial Liquid Waste Greases (RILESUR)

82,3% Organic (PACIFIC STAR)

5,0% To landfill

1,4% Polystyrene (covers and layers) (Resister) 0,9% Carton and white paper (SOREPA) 0,3% Coactiva (Co-process)

0,001% Boots (ECOFIBRAS) 0% HDPE (ECOFIBRAS) 0,01% Lubricating oil (REPROTEC) 0,02% Scrap (Resiter) 0,1% Polystyrene (ECOFIBRAS/ GREENSPOT)

333

INCREASE IN RECYCLING IN FARMING.

MULTIEXPORT FOODS

CARBON FOOTPRINT

(by GREENTICKET)

Climate change is one of the most important challenges that humanity faces, and it will increasingly affect nature, living conditions and countriesâ&#x20AC;&#x2122; economies. In this sense, reducing GHG emissions is strategic for the future development of the business and the country. Multiexport Foods therefore has the opportunity to contribute to reducing such emissions by analyzing and managing its carbon footprint as a company. Therefore, here we present the second measurement of the company, in its activities in fresh water, sea water and Processing.

The calculation of the operational emissions of Multiexport Foods for fresh water, sea water and processing operations, is made by applying various emission factors in accordance with the Greenhouse Gases Protocol (GEI Protocol). These factors were applied to indicators such as electricity, use of fuel, use of refrigerants and waste in different units of measurement (for example, kilowatt-hour of electricity, liter of fuel, liter of refrigerant gas and volume of waste). The emission sources included in this study are described in Table 1.

Table 1: Emissions analyzed by source SCOPE

SOURCE OF EMISSION

DESCRIPTION

DETAIL

SCOPE 1

Direct

Fuels and Refrigerant Gases

Direct emissions produced by burning fuel in the facilities and the use of refrigerant gases in equipment owned by the company.

SCOPE 2

Indirect

Electricity

Indirect emissions from the burning of fossil fuels in electricity generators.

SCOPE 3

Indirect

Waste

Indirect emissions produced by the collection of waste, transport and decomposition in landfills.

â&#x20AC;?

CLIMATE CHANGE IS ONE OF THE GREAT CHALLENGES FACED BY HUMANITY.

Environmental performance

This inventory of greenhouse gases was coordinated by Greenticket with data supplied by Multiexport FOODS S.A. Greenticket analyzed the information, calculations and inferences from the inventory; it also gathered information from each of the fresh water, sea water and plant activities. According to the approach and limits used, the measurement of the carbon footprint should represent the largest number of the companyâ&#x20AC;&#x2122;s operations possible. For this emissions inventory, a consolidation approach was applied, based on Operational Control. Under this approach the GHG emissions attributable to fresh water, sea water and plant operations over which Multiexport Foods exercises total control are counted. Once the organizational limits have been identified, the type of emissions to be included in the analysis of the carbon footprint provides the following scopes:

facilities of the dam, as well as chemicals and materials resulting from the production processes, emissions of the vehicles that the company uses, emissions of HCFCs for refrigeration equipment and air conditioning. SCO PE 2 (CO M PU L SO RY ) These are indirect emissions generated by the use of electricity, heat or steam of external origin consumed by the organization. This scope includes consumed and acquired electricity. Emissions within this scope occur physically in the plant where electricity is generated. SCO PE 3 (O P CIO NAL) These are the emissions that result from the organization's activities, but that come from sources they do not own or that are not under their control. In other words, emissions from waste disposal, transport of workers and business trips, among other things. The GHGs identified in the present inventory are:

SCO PE 1 (CO M PU L SO RY ) These are direct emissions that result from activities controlled by the company. The sources include heat, electricity, or steam generated by boilers that are found in the

CARBON DIOXIDE

C02

METHANE

CH4

NITROUS OXIDE

N20

Table 2: Categorization of GHG emissions by scope and type of activity

ESTABLISHMENT

SCOPE 1

SCOPE 2

SCOPE 3

FRESH WATER

Fuel consumption

Waste

SEA WATER

Fuel consumption

Waste

PLANT

Fuel consumption and use of Refrigerants

Electricity Consumption

Waste

Table 2 specifies the categorization of greenhouse gas emissions which were identified within the business units of fresh water, sea water and the plant.

Environmental performance

R E SU LTS By 2018, the total GHG emissions of Multiexport Foods was 72,683.43 tCO2e. This result is certified by Deloitte.

Graph 1: Distribution of emissions by business unit

The business unit that contributes the most to the aforementioned total is the plants, contributing 54% of the GHG inventory. Second place is occupied by the sea water sector, which contributes 38.5% of the companyâ&#x20AC;&#x2122;s total inventory, and finally the fresh water sector, with 7.5% of the total.

7,5% Fresh Water

This distribution allows us to see the priority areas where efforts are needed to reduce emissions.

54% Plant

38,5% Sea Water Table 1: Total GHG emissions by activity SCOPE

ACTIVITY

GHG EMISSIONS (tCO2e)

Scope 1

Consumption of fuels and refrigerant gases

67.062,43

Scope 2

Use of electricity

4.845,33

Scope 3

Waste

775,67 72.683,43

TOTAL

As seen in table 1 and graph 2, the scope that has contributed more emissions is scope 1, with 67,062.43 tCO2e, equivalent to 92% of the total. Scope 2 contributed 4,845.33 tCO2e, and 7% of the total emissions. For its part, scope 3 has 775.67 tCO2e, representing only 1% of total emissions.

Graph 2: total tCO2e by scope

7% Scope 2

1% Scope 3

92% Scope 1

MULTIEXPORT FOODS

SCO PE 1 Scope 1 is mostly responsible for the GHG inventory of Multiexport Foods. It contributes 92% of the emissions and is composed of the total fuel consumption and refrigerant gases of the company in all its areas.

Graph 4: % tCO2e scope 1 by type 10% Other fuels

7% Electricity

Refrigerant gases are those contributing the most within this scope. Gases analyzed in this report are consumed only in the plants and include R-22 gas and R-44A gas. The emissions of the latter are very low, while the consumption of R-22 represents 45% of the companyâ&#x20AC;&#x2122;s total GHG emissions. For their part, the fuels analyzed are the second highest cause responsible for emissions within Scope 1, including liquid petroleum gas (consumed in liters and kilos), diesel, diesel oil and gasoline. These fuels have different uses depending on the sector where they are employed. Among them, the high consumption of diesel oil in the sea water sector stands out, contributing 37% of the total GHG inventory. The rest of the fuels consumed contribute 10% of the total emissions. Graph 3: tCO2e scope 1 by type

37% Petroleum

45% R-22 Gas

SCO PE 2 Scope 2 reflects emissions coming from the mains electricity consumption. In this section of the analysis, only emissions from the plants have been considered. Fresh water and sea water do not show any mains consumption in 2018.

30K

The mains electricity consumption of the plants was 14,403,478 KWh during 2018. Emissions from this consumption are 4,845.33 tCO2e and represent 7% of the Multiexport Foodsâ&#x20AC;&#x2122; GHG inventory.

20K

10K

WASTE

ELECTRICITY

OTHER FUELS

PETROLEUM

0K R-22 GAS

Environmental performance

SCO PE 3 Scope 3 reflects the impact that the companyâ&#x20AC;&#x2122;s waste management has on the GHG inventory. With 775.67 tCO2e, scope 3 represents a small contribution of 1% to Multiexport Foodsâ&#x20AC;&#x2122; total emissions.

Graph 5: Waste emissions by area 18% Plant

The area producing the most waste emissions is the sea water sector, with 56% of the total contribution and 438.56 tCO2e. It is followed by the fresh water sector, with 26% of scope 3 and 199.15 tCO2e, and, finally, the plants, with 18% of the total and 137.96 tCO2e.

26% Fresh water

56% Sea water

MULTIEXPORT FOODS

CO M PARISON WITH L AST YE AR In 2018, the company’s total emissions were 9.5% higher than in 2017. While in 2018 the total reached 72,683.43 tCO2, in 2017 this total was 66,382.97 tCO2e. This increase, which is proportional to the growth of Biomass between 2017 and 2018, is explained almost exclusively by increases seen in two categories of scope 1: • In 2018, the consumption of R-22 refrigerant gas in the plant area increased. This increase translated into approximately an additional 4,170 tCO2e.

the inclusion of trucks and pickups in the plant area that had not been considered in 2017, these variations are not significant enough to influence the total emissions in a material way. Regarding scope 2, there is a slight increase in electricity consumption compared to 2017. However, total emissions are 15% lower due to a lower conversion factor of the Central Interconnected System, calculated by the Ministry of Energy. Lastly, although the impact on the inventory is low in scope 3, the efforts made regarding waste management of the plant area stand out for the year 2018:

• In 2018, the consumption of diesel oil in the seawater area increased. This increase translated into approximately an additional 1,800 tCo2e.

• All the disc filter waste was sent to a treatment plant for its reuse, resulting in savings of approximately 400 tCO2e.

Although there are more variations in the consumption of different fuels, along with

• A storage unit for scrap metal destined for recycling was incorporated.

MULTIEXPORT FOODS

RESULTS AND ANALYSIS FRESH WATER SECTOR In 2018, Multiexport Foodsâ&#x20AC;&#x2122; fresh water operations resulted in 5,284.36 tCO2e. As can be seen in table 2 and graph 6, the scope that contributed the most emissions is scope 1, with 5,085.21 tCO2e, equivalent to 96% of the total. Scope 3 contributed 199.15 tCO2e, representing 4% of the total emissions of the fresh water area. Table 2: Total GHG emissions by scope and operation in fresh water

OPERATION

GHG EMISSIONS (CO2E)

Scope 1

Fuel consumption

5.085,21

Scope 3

Waste

199,15

SCOPE

TOTAL

Graph 6: Fresh water emissions by scope

4% Scope 3

5.284,36

96% Scope 1 SCO PE 1 Scope 1 is composed of the consumption of different types of fuels, used both in power generation and power equipment. Unlike in 2017, fuel used for vehicles is not reported, so they have not been included in this analysis. Below, emissions from each activity within this scope are detailed, with the objective of identifying the operations contributing the most. Table 3: Scope 1 emissions, by operation in freshwater

OPERATION

ANNUAL CONSUMPTION

EMISSIONS (TCO2E)

GHG CONTRIBUTION

Diesel consumption

1.014.014 liters

2.663,76

52,4%

Consumption of LPG

1.594.049 liters

2.421,45

47,6%

5.085,21

100%

TOTAL

The greatest environmental impact caused by fuel in the freshwater sector is due to the use of diesel in generators. As shown in table 3, the annual consumption of this fuel is less than the amount of LPG consumed, but the burning of diesel has a greater environmental impact. For this reason, despite having a lower consumption level than LPG, diesel represents more than half of fuel emissions, with 52.4% of scope 1. For its part, liquid petroleum gas represents 47.6% of emissions. Because fuel consumption is responsible for 96% of total emissions in the freshwater sector, monitoring efforts should focus primarily on diesel consumption.

Environmental performance

SCO PE 3 In Scope 3, solid waste from the different operating sectors within the freshwater area were studied. Household waste and industrial waste have been included. Below, table 4 and graph 7 show the relative impact of each one of the analyzed waste types: Table 4: Waste emissions, freshwater

TYPE OF WASTE

ANNUAL TONS

GHG EMISSIONS (CO2E)

Industrial waste

109

10,87

Household waste

321

188,28

TOTAL

430

199,15

Emissions from disposed waste represent 4% of the emissions in the freshwater sector. However, this environmental impact is explained almost entirely by household waste. Graph 7: Distribution by type of freshwater waste 95% Industrial

Household waste is responsible for 95% of waste emissions in the freshwater sector. It represents 188.28 tCO2e of the total 199.15 tCO2e in the whole area. This is due to the scale of discarded household waste compared with the amount of industrial waste. For its part, industrial waste contributes 10.87 tCO2e annually and represents 5% of total waste emissions in the freshwater area.

5% Household

CO M PARISO N WITH L AST YE AR â&#x20AC;˘ Emissions in the freshwater sector increased by 14% in 2018 when compared to 2017 (4,634 tn CO2-e in 2017 vs 5,284 tCO2e in 2018). This increase must be primarily attributed to a 52% increase in LPG fuel consumption, resulting in an additional 840 tCO2e. â&#x20AC;˘ Variations in waste management do not significantly affect total emissions given their small scale.

MULTIEXPORT FOODS

RESULTS AND ANALYSIS SEAWATER SECTOR In 2018, Multiexport Foodsâ&#x20AC;&#x2122; seawater operations resulted in 27,977.38 tCO2e. As can be seen in table 5 and graph 8, the scope with the highest contribution of emissions is scope 1 with 27,538.82 tCO2e, 98.4% overall. For its part, scope 3 adds 438.56 tCO2e, representing 1.6% of the total emissions from the seawater sector. Power generation is carried out in different Multiexport Foods seawater farms, using generators that work by burning fuel. Therefore, the electricity consumption of the seawater farms is reflected in the fuel consumption for power generation for scope 1.

Table 5: Total GHG emissions by scope and activity in seawater

OPERATION

GHG EMISSIONS (CO2E)

Scope 1

Fuel Consumption

27.538,82

Scope 3

Waste

438,56

SCOPE

27.977,38

TOTAL

Graph 8: Seawater emissions by scope 1,6% Scope 3

98,4% Scope 1 SCO PE 1 Scope 1 includes diesel oil consumption, liquid petroleum gas and gasoline from the seawater sector. Table 6: Composition of scope 1 emissions, by seawater operation ANNUAL CONSUMPTION

GHG EMISSIONS (TCO2E)

Diesel Oil Consumption

9.048.936

26.879,77

LPG Consumption (Lts)

312.881

475,29

1,7%

LPG Consumption (Kg)

5.820 kilos

17,10

0,1%

75.652 liters

166,67

0,6%

27.538,82

100%

OPERATION

Gasoline consumption for vehicles TOTAL

CONTRIBUTION OF GHG EMISSIONS

97,6%

Environmental performance

The fuel with the highest contribution to Scope 1 emissions in the seawater sector is the diesel use for power generation in sea farms pontoons, machinery and transport. From the total emissions of scope 1, 27,538.82 tCO2e - about 97.6% - are generated by diesel oil consumption. The annual consumption of this fuel increased in 2018 to 9,048,936 liters. As well as its large consumption quantities, the average impact factor of diesel oil is greater than the other fuels consumed by seawater farms. If we consider the diesel oil impact from the seawater sector in the entire company, this gas explains 37% of the total emissions of Multiexport Foods. The consumption of liquid petroleum gas was made both in liters and kilos, even though the largest amount was in liters, increasing to 312,881 liters and 475.29 tCO2e. The burning of liquid petroleum gas in kilos was smaller - 5,820 kilos - which represents 17.10 tCO2e per year. Considering liquid petroleum gas impact, both in kilos and liters, this fuel contributes 1.8% of the total impact on scope 1. Finally, fuel consumption of the vehicles increased to 75,652 liters in 2018. Emissions

1. The emission conversion factor used for this fuel corresponds to Gas Oil, also called red diesel, used in diesel engines. This is because the fuel consumption used individually for means of transport, generators in pontoons and machinery could not be separated for the seawater sector.

from gasoline consumption were 166.67 tCO2e, representing 0.6% of the scope 1 emissions. SCO PE 3 In scope 3, solid waste from the seawater sites was included in the analysis. Household waste and industrial waste has been considered. The following table and graph show the relative impact of each type of waste analyzed: Table 7: Waste emissions, seawater TYPE OF WASTE

Industrial Waste Household Waste TOTAL

ANNUAL TON

GHG EMISSIONS (CO2E)

1.033

103,06

572

335

1.605

438,56

Of the total emissions analyzed for Multiexport Foods seawater farms, 1.6% corresponds to those originating from waste.

Since the emission conversion factor of Gas Oil is slightly higher than that of diesel, this factor was considered to avoid false representations of this fuel’s environmental impact in the company. Therefore, diesel consumption in the seawater sector is named in this study as “Diesel oil”.

Environmental performance

Graph 9: Distribution by type of waste, sea water 24% Household

76% Industrial

In 2018, seawater farms disposed of a total of 1,605 tons of waste. Of these, 1,033 tons were industrial waste and 572 tons were household waste. Although the number of tons of household waste is lower than that of industrial waste, waste emissions from household waste are much higher. This is because household waste includes the disposal of both organic and inorganic products, and this have a greater environmental impact than industrial waste. In 2018, household waste contributed emissions of 335.50 tCO2e and represented 76% of the total waste emissions from the seawater area. On the other hand, industrial waste was responsible for 103.06 tCO2e and the remaining 24%.

CO M PARISO N WITH L AST YE AR • Emissions from the seawater area increased by 7% in 2018 compared to 2017 (26,264 tn CO2-e in 2017 vs 27,977 tCO2e in 2018). This increase is mainly due to a 7% increase in diesel oil fuel consumption, resulting in 1,775 additional tCO2e. Given the scale of diesel oil consumed by the sector, this increase significantly affects the company’s total emissions. • Variations in waste management do not significantly affect total emissions given their small scale.

MULTIEXPORT FOODS

RESULTS AND ANALYSIS PLANTS The 2018 GHG emissions inventory of Multiexport Foodsâ&#x20AC;&#x2122; plant operations gave a result of 39,421.68 tCO2e. As seen in table 9 and graph 9, the scope with the most emissions is scope 1, with 34,438.39 tCO2e, equivalent to 87% of the total, followed by scope 2 with 4,845.33 tCO2e and 12.5% of the inventory, while scope 3 contributed to 0.5% of emissions, with 137.96 tCO2e.

Graph 10: Emissions by scope, processing 12,5% Scope 2

87,0% Scope 1

0,5% Scope 3

Environmental performance

Table 8: Total GHG emissions by scope and plant activity

SCOPE

ANNUAL TONS

Scope 1

Consumption of fuels and refrigerant gases

Scope 2

Use of electricity

Scope 3

Waste

TOTAL

GHG EMISSIONS (CO2E)

34.438,39 4.845,33 137,96 39.421,68

CO M PARISON WITH L AST YE AR • Emissions from the plants increased by 11% in 2018 compared with 2017 (35,485 tn CO2e 34 tn CO2-e in 2017 vs 39,422 tCO2e in 2018). This increase is mainly due to a 15% increase in the consumption of refrigerant R-22 gas and to a 33% increase of R-442 gas, resulting in an additional 4,300 tCO2e (4,170 tCO2 for R-22 gas and 133 tCO2-e for R-44). • Variations in the conversion factor for electricity consumption represented a reduction of scope 2 emissions by 15%, compared to 2017, resulting in savings of 860 t CO2e. It must be noted that these savings in emissions are due to the conversion and not to a decrease in electricity consumption, which remained at 2017 levels3. • Efforts regarding waste management, especially the decision to send disc filter waste to a treatment plant for its reuse, have reduced waste emissions by 73%, resulting in savings of 367 tCO2e4.

2. 163.50 kg were consumed 2017, and 233 kg in 2018. 3. The energy consumed in 2017 was 14,371,541 kWh, versus 14,403,478 kWh for year 2018. 4. 2017 emissions were 504.77 tCO2e, while in 2018 they were 136.96 tCO2e. In 2017, 409.85 tCO2e came from disc filter waste.

MULTIEXPORT FOODS

FINAL CONSIDERATIONS This study provides an analysis of Multiexport Foods’ carbon footprint emissions in 2018. It is the second consecutive year that the company analyzes its emissions, so the analysis will allow us to build a database following the company’s performance and implement energy efficient and sustainable development policies.

CARBON FOOTPRINT OF THE PRODUCT

The analysis of Multiexport Foods’ carbon footprint in its freshwater, seawater and plant operations shows a total of 72,683.43 tCO2e for 2018.

72.683,43 tCO2e (82.851 tWFE*68% Performance)

ALL THESE INITIATIVES AIM TO ACHIEVE A 20% DECREASE OF OUR FOOTPRINT BY 2020.

1,29

tCO2e tCO2e/ tEdibleMeat

Environmental performance

N E X T STE PS A significant milestone on the way to reducing GHG, Multiexport Foods has adopted a new impact mitigation strategy to avoid climate change, becoming one of the first companies in the business to take a proactive stance on the matter. We understand that all industrial activity generates an impact and therefore it is important to reduce it by means of concrete measures. So, the management of our carbon footprint is a useful and standardized mechanism that will help the company to mitigate our direct impact on climate change.

The company has developed an action plan called â&#x20AC;&#x153;Multiexport Climate Action Strategyâ&#x20AC;?, supported by GreenTicket, where we will focus our efforts on training for internal capabilities in the field of energy efficiency and resource management, optimizing energy and fuel consumption, exploring the use of renewable energies, adopting initiatives to compensate for our footprint and evaluating improvements in equipment and technology for breeding and processing. All these initiatives aim to achieve a 20% decrease in our footprint by 2020.

C Explore the use of renewable energy

Corporate emissions reduction program

Lower the use of oil in the seawater phase

Evaluation of current technology, Farming and Processing

CLIMATE ACTION STRATEGY

SO CIA L P E R FO R M A N C E

MULTIEXPORT FOODS

SOCIAL PERFORMANCE A . L ABOR DIVE RSIT Y Managers and assistant managers

GENDER

Men

5 38

TOTAL

NATIONALITY

GENDER

NO.

Women

Employees (managers and assistant managers included)

NO.

Men

NO.

1.563

Women

871 2.434

TOTAL

NATIONALITY

NO.

Chilean

2.361

Foreign

TOTAL

AGE

2.434

TOTAL

AGE

NO.

<30 years

619

30 - 40 years

794

41 - 50 years

669

51 - 60 years

297

61 - 70 years

> 70 years

TOTAL

SENIORITY

NO.

TOTAL

SENIORITY

2.434

NO.

< 3 years

1.185

3 - 6 years

604

6 - 9 years

485

9 - 12 years

> 12 years

111

TOTAL

2.434

Social performance

B . G E N DE R PAY GAP

C . DISAB ILIT Y BY G E N DE R

Difference between the average gross basic salary of female executives and employees, and the average gross basic salary of male employees and executives.

Proportion of workers with disabilities by gender, within the companyÂ´s total workers.

POSITION

DIFFERENCE

Managers and assistant managers

N/A

Heads of Department, professionals and technicians

0,90

Operators and Administrative personnel

0,93

POSITION

FEMALE %

GENDER

Men

0,25%

Women

0,17%

TOTAL

0,4%

D. TR ADE U N IONS

Heads of Department, professionals and technicians

6,85%

Operators and Administrative personnel

28,78%

At Multiexport Foods, we recognize the importance of the existence of unions and respect the right to free association, an ideal that is widespread in the entire organization through our Free Association Policy. Our company respects the unionization of our employees through participatory, direct and transparent management of the exchange of information. We continuously work on cultivating a constructive relationship, looking for proximity and harmony with all employees to find solutions to possible problems together. As of December 31st, 2018, Multiexport Foods has 9 trade unions, which represent 53.4% of our employees.

â&#x20AC;?

AS OF DECEMBER 31ST, 2018 MULTIEXPORT FOODS HAS 9 TRADE UNIONS, WHICH REPRESENT 53.4% OF OUR EMPLOYEES. .

MULTIEXPORT FOODS

E . B E N E FITS AN D AG R E E M E NTS Benefits

Agreements

Marriage Allowance Medical Leave Allowance Death Allowance Vacation Bonus National Holidays Bonus Christmas Bonus Education Bond Christmas gift Christmas basket Seniority Bonus

Supplementary Medical Insurance Entel Agreement Movistar Agreement Arturo López Pérez Cancer Foundation Agreement Uno Salud Dental Agreement Cleandent Dental Agreement Bcdent Dental Agreement Clínica Vergara Dental Agreement Chilhue Optical Agreement Monet Optical Agreement Imagen Optical Agreement Mas Vision Optical Agreement Mundo Automotriz Agreement ULA Gym and pool agreement Abastible Agreement Lipigas Agreement Credi-Chile Agreement Yacht Club Agreement

Social performance

F. SECU RIT Y 201 8 Mutual

Lost Time Injury Frequency Rate

ACHS.

Number of work-related injuries, including death, resulting in inability to work and absence, starting from the next day of work or work shift, between January and December. Calculated as follows: Total number of lost time injuries / total number of hours worked) x 1,000,000.

MH Worked 4.979.880 man-hours worked. Accident Rate The Accident Rate measures the percentage of accidents occurring within a certain period in relation to the number of employees working in the company in that same period. YEAR

RATE

2016

3,84%

2017

4,93%

2018

3,41%

YEAR

2016

16,00

2017

22,13

2018

16,01

Fatalities Number of deaths on the companyâ&#x20AC;&#x2122;s facilities between January and December.

Accident Rate

YEAR

Number of days lost per 100 employees. YEAR

RATE

2016

2017

2018

RATE

DEATHS

2016

2017

2018

Absenteeism Rate Any absence related to an employeeâ&#x20AC;&#x2122;s personal health. Calculated as follows: Total number of absent days / total number of workdays. YEAR

RATE

2016

0,57%

2017

0,54%

2018

1,78%

MULTIEXPORT FOODS

G . IN NOVATION Our company culture has adapted to consolidate innovation as a characteristic feature. In 2018, we carried out 48 innovation projects devised by our personnel (23% more than last year). These came from a portfolio of 412 ideas. H . FOR MATIO N During 2018, 5,753 hours were allocated to the training of workers distributed in 171 workshops and programs for 2,634 people through an investment that exceeds $ 240,000,000 CLP. I . TR ADE ASSOCIATIO N 201 8 From the beginning of SalmonChile, Multiexport Foods has actively participated in different activities that this entity has promoted, and is part of the General and Technical Board, where it exhibits and compares considerations and experiences, in a framework for interaction, transparency and business respect. Furthermore, as of 2018, Multiexport Foods, has joined the Association of Salmon and Trout Producers of Magallanes AG., regularly attending Board meetings, and interacting with partner companies and local stakeholders. During the 2018 period, we actively participated in meetings and conferences held by the â&#x20AC;&#x153;Global Salmon Initiativeâ&#x20AC;? (GSI), an initiative that brings together 17 salmon companies from around the world, representing

more than 50% of world production. The common goal of this group is to provide a source of healthy protein to feed a growing population, minimizing environmental impact and improving the social contribution of the activity. In this context, Multiexport Foods forms part of a 4-topic common agenda: Biosafety, Nutrition and Food, Standards and Communications. Our participation in such organizations meant a contribution of $ 295,609 USD during the 2018 period. The main goals sought by our company through associations are related to ensuring the sustainability of the industry in its triple impact, as well as exploiting platforms for technical discussion and productive or sanitary innovation. Political Contributions In line with our internal rules and regulations, at Multiexport we did not make contributions to political campaigns, political organizations, lobbies, lobbyists and/or any other groups exempt from taxes with political influence during 2018. J. ANTICO R RU P TIO N P O LICY AN D CODE OF CON DUC T 100% of our staff have been instructed regarding the code of ethics and good practices of the organization. In 2018, Multiexport Foods did not report any cases of Code of Conduct infringement or fines by regulatory entities.

Social performance

”

OUR PARTICIPATION IN SUCH ORGANIZATIONS MEANT A CONTRIBUTION OF $ 295,609 USD, DURING THE 2018 PERIOD.

MULTIEXPORT FOODS

K . R EG U L ATO RY CO M PLIANCE Monetary value of sanctions and significant fines arising from regulatory noncompliance. AUDITING ENTITY

USD PAID

Environmental

16.729

Labor

13.983

Municipal USD PAID TOTAL

223 30.936

Number of fines paid by auditing entity.

Number of inspections per auditing entity (2018).

AUDITING ENTITY

AAMM

Labor

Municipal

TOTAL FINES

63 1

IPT

Health Service

SERNAPESCA

SMA

NUMBER OF FINES

Environmental

NUMBER INSPECTIONS

DGA

TOTALES AUDITING ENTITY

”

100

THE COMPANY CONTRIBUTES $ 940,280,521 THROUGH THE PAYMENT OF AQUACULTURE LICENSES

2 167

Social performance

L . PAYM E NT O F AQ UACU LTU R E LICE NSE S The company makes a direct contribution to municipal funds through the payment of aquaculture licenses.

LA UNIÓN $10.270.177 PUERTO OCTAY $15.472.960 PUERTO MONTT $16.011.778 CALBUCO $75.501.828 QUEMCHI $522.212 DALCAHUE $483.530 CURACO DE VÉLEZ $28.032.006 CASTRO $44.701.381 QUINCHAO $44.701.381

COCHAMÓ $26.046.225 HUALAIHUÉ $36.342.107

CISNES $463.163.716

AYSÉN $146.295.270

NATALES $67.645.847

101

102

MULTIEXPORT FOODS

M . SU PPLIE RS Amounts associated to local economic linkage produced by Multiexport’s supply for the year 2018.

COUNTRY

TOTAL AMOUNT USD

%PART

Germany

441.839

0,12%

Brazil

132.322

0,03%

Denmark

187.765

0,05%

U.S.A.

29.600

0,01%

Japan

24.498

0,01%

Argentina

544.918

0,14%

Chile

378.108.829

99,7%

TOTAL

379.469.772

100%

TOTAL AMOUNT USD

271.840.331

71,89%

Metropolitan region

91.413.122

24,18%

VIII Biobío

9.455.328

2,50%

XIV Los Ríos

2.050.151

0,54%

V Valparaíso

1.438.865

0,38%

XI Aysén

1.155.486

0,31%

VI O'Higgins

501.950

0,13%

IX La Araucanía

209.654

0,06%

XII Magallanes y Antártica

23.632

0,01%

IV Coquimbo

18.158

0,00%

VII Maule

2.152

0,00%

378.108.829

100%

REGION

X Los Lagos

TOTAL

104

MULTIEXPORT FOODS

Critical Suppliers These are suppliers whose goods are in direct contact with food. The commitment that a supplier in this category must have is to safeguard the integrity and safety of the products delivered to Multiexport Foods, from the manufacturing stage, to packaging, and throughout the parts of the chain in its custody, maintaining appropriate procedures, certifications and/or quality assurance programs.

ENTRY SHEET

LIST OF REQUESTED DOCUMENTS

Send to supplier

GOODS SUPPLIER (ANNEX 2)

ENTRY SHEETS AND DOCUMENTS RECEIVED FROM THE SUPPLIER

REQUEST MISSING DOCUMENTS

SERVICE SUPPLIER (ANNEX 3)

Do they have the requested documents? Yes

REVISION OF DOCUMENTS

APPROVAL No

Yes

Eligible supplier to work with Multiexport Foods?

SUPPLIERâ&#x20AC;&#x2122;S ENTRY TO MASTER OF SUPPLIERS

REJECTED

REQUIREMENT OF REQUESTING USER

APPROVED

SELECTION AND ENTRY OF SUPPLIERS

(ANNEX 1)

Social performance

APPROVAL

EVALUATION OF SUPPLIERS

Good evaluation? Yes

RESULTS ARE REGISTERED

APPROVED

ANALYST

START EVENT

EVALUATION

Good result? Yes

AUDIT REPORT

APPROVED

EXTERNAL AUDITOR

PERFORM AUDIT IN SUPPLIERSâ&#x20AC;&#x2122; FACILITIES

Authorize?

APPROVED

Yes

EVALUATE RESULTS

REJECTED

SUPPLY MANAGER

SUPPLIERS EVALUATION PROCESS

AUDIT COORDINATION WITH SUPPLER

105

106

MULTIEXPORT FOODS

SO CI O - E N VI R O N M E NTA L I N ITIATIV E S

Our company

107

108

MULTIEXPORT FOODS

SOCIO-ENVIRONMENTAL INITIATIVES Numerous actions performed daily by our company have a strong productive and social element. On one side, this takes place internally with our employees, but also with the community in which we are an integral part. Both our organizational principles and our permanent intention are to be part of and support the social fabric of the country, so on a regular basis we seek to participate and contribute to our neighbors, organizations and society as a whole.

Internships Additionally, internship agreements were formalized with different educational establishments in Puerto Montt, seeking to support the training of mid-level technical students of outstanding academic performance.

E DU CATIO N

At the end of 2018 we had 29 students who were finishing their studies as Food Technicians with the Professional Institute La Araucana, who will be graduating during the first semester of 2019.

A concrete way to influence and support the communities where we operate is through education. For this reason, during 2018 we were constantly supporting the educational work of universities and schools through trips to our plants, hatcheries and sea farms, as well as through talks with our executives.

In addition, in 2018 the company developed initiatives aimed at the inclusion of disabled people in the workforce. An example of this is the program carried out with Special School Los Eucaliptus, in Puerto Montt, where students from this institution perform dual activities in the company to then enter as employees in the processing plants.

To this end, in 2018, and for the third consecutive year, we granted scholarships through the NGO Canales so students from the Melinka district could attend their high school, technical or university classes off the island. This is highly valued by both the students and their families.

Specifically, in 2018, 92 professional internships were carried out in different areas of the company.

Melinka Island, Los Lagos Region.

Contributions to schools Seeking to contribute to and support the welfare of the areas neighboring its operations, Multiexport Foods collaborated with the Special School Los Eucaliptus, providing medical supplies and the purchase of equipment for workshops in laundry, cooking, preserves and horticulture. In addition, Los Eucaliptus invested part of the contributions in renovating the facade of its building.

â&#x20AC;?

OUR ORGANIZATIONAL PRINCIPLES AND INTENTION ARE TO BE PART OF SOCIAL SUPPORT OF THE COUNTRY

Part of the school community that engaged in painting the educational building. Christmas party with students of the special School Los Eucaliptus.

Austral University students visiting the Marcacci farm. Visit to our Processing plant in Cardonal.

110

MULTIEXPORT FOODS

Likewise, another of the institutions we supported last year was the Antupirén School, located in Hornopirén, where thanks to our contribution they painted its outdoor spaces, allowing the students to better enjoy the places that foster creativity and learning, in a playful and didactic way. Our company also has a historical connection with the Sagrada Familia School of Hornopirén, where we have been part of the development and growth of this educational establishment through different initiatives that directly benefit the educational community. To name a few, we have carried out recreational family days, sports workshops, and recognized the academic excellence of their students, among other initiatives. Along with the above, we also make regular contributions to several educational institutions in the locations where we are present. To name a few, they are the Guido Gómez Muñoz School, Mirador del Lago School, Camelias School, Llaguepe School, Ostricultura Rural Isla Apiao School, Pedro Bravo Rotary School, La Pellinada Rural School, Piedra Azul School, among others.

Bachelor of IV Middle School Santier Family of Hornopirén.

Contributions to NGOs We also support the work of some non-governmental organizations with the mission to contribute to the development and growth of school education in Chile. We contribute annually to the NGO Canales, an institution that aims to increase the potential of technical-professional establishments in the south of the country, establishing links between them and the productive sector, as well as Enseña Chile, with whom we maintain an alliance that contributes to the growth of disadvantaged students around the country. Supporting higher education Our contribution to Universities and Institutions of Higher Education is also an important part of our goal to generate shared value together with the communities where we operate. This is why we maintain close cooperation with the Santo Tomas University, sponsoring their interdisciplinary Nutrition and Diet conferences, which aim to get different professionals from the health sector involved in different processes related to nutrition, in order to better understand the effects of food on human beings and the functional role of salmon and other seafood in their diet.

Socio-environmental initiatives

111

Students and teachers of the Pedro Bravo Rotary School receive a contribution from our company. Our company supporting Piedra Azul School.

EnseĂąa Chile wants all Chileans to receive a quality education. Professionals from the Santo TomĂĄs University in the Interdisciplinary Nutrition Conference.

112

MULTIEXPORT FOODS

Students of the Austral University of Chile learn about technology from the aquaculture industry.

Theatrical activities.

Rodrigo CĂĄrdenas, who recently qualified to the Pan-American games in Lima, Peru, and hopes to qualify for the World College Games.

Artisan Fisherman course in ChiloĂŠ.

Socio-environmental initiatives

We also contributed to the donation of a FishTalk software license, developed by AKVA GROUP for the students of Technical Studies of Salmon Aquaculture at the Austral University of Chile, Patagonia Campus, designed for them to have access to complete information regarding the productive processes for the control, management and planning of a seawater farm. This allowed us to contribute to the students’ learning. Corporate Reputation Center Support, ESE - Universidad De Los Andes The company also collaborates with the Corporate Reputation Center, promoting better practices in the field of large companies’ reputation and looking to answer questions such as: how is reputation created? How is the corporate reputation sustained? And, how do you recover reputation when it is lost? CU LTU R E Cultural development is also important for our company. In this sense, we support the Cultural Corporation of Puerto Montt annually in its performance of Temporales Teatrales, an event that in its last edition included three stages in Puerto Montt, as well as tours to other southern cities in Chile, receiving about 33 thousand spectators in total, and becoming one of the most important performing arts events in the country. Along the same line, we also support the performance of a gathering of theatrical schools, where students from different educational institutions in southern Chile demonstrate their acting skills on the main Puerto Montt stage, the Diego Rivera Theater. We also contribute to the Bosque Nativo Cultural Gallery of Puerto Varas, in the curation of exhibitions and other activities that seek to bring culture to local communities.

113

S P O RTS The development of sporting activities is also an important part of maintaining a healthy way of life. That is why we encourage our employees to practice sport by sponsoring their participation in different national groups, especially the MEF Runners, who train throughout the year, and participate in runs such as the Santiago Marathon, Torrencial Valdivia and Frontera Trail, among others. We are also proud of the results achieved by the young athlete Rodrigo Cárdenas, who we support, and who achieved excellent scores in 2018. He stood out in discus and hammer throwing, winning in those specialties in the National University Athletics Championship. SOCIAL DE VE LO PM E NT Local development in the areas neighboring our operations is of the highest importance for our company. We are constantly supporting them in the any way that they may require, creating opportunities for dialogue that allow their growth through both shared values and various contributions for their development. This way, in 2018 we supported more than 30 artisan fishermen from Tenaún and Caguach, on island of Chiloé, through a course of “Advanced Riviera Mastery”, which allowed them to acquire techniques specific to this profession. Furthermore, we support indigenous communities both in the transport of people and materials and aid that help their development, focusing on communities such as Ali Antu, Ayulemn Mapu and Cheuquemán, among others.

114

MULTIEXPORT FOODS

We also provided support after the fire in the Dalcahue City Hall, donating technological equipment that allowed them to resume their functions as soon as possible after this unfortunate event.

In the same vein, we were major collaborators in the Re-Crea Lago Llanquihue program, an initiative aiming to change environmental culture through education and recycling. This program is being applied in five establishments in the Puerto Varas, Llanquihue and Puerto Montt districts. In its first year of operation, the program successfully gathered almost 160 tons of waste.

Moreover, the Disabled Children Corporation (Coanil) organizes an annual run in Puerto Montt, and we as a company help provide whatever is necessary for it to be successfully carried out and contribute to the noble cause of this foundation. We therefore provide all the shirts needed for its registered competitors.

Furthermore, in the towns of Chayahué, Puerto Octay and Melimoyu, we actively collaborated in environmental education talks for local schools, where we raised awareness of the impact generated by waste in our ecosystem.

For the first time, we also joined as a company in the Psalm Days in Magallanes, an event that raises money to support children, youth and adult rehabilitation in the region.

These are some of the many initiatives and actions carried out by Multiexport Foods in 2018, allowing us to connect with the local communities in which we are an integral part, and thus support them in their development and growth.

As for beach cleanups, last year we continued to support the coastal communities to get these spaces free of waste. In this regard, we would like to highlight the activities carried out in the towns of Apiao, Quinchao, Chayahué, Rupanco and Melomoyu.

In total, during the 2018 period, the company supported social programs as per the following detail:

We were also an integral part of the “Cleaning the World” campaign, an initiative seeking to raise awareness about the impact generated by waste in the sea, leading its founder, the Marine Biologist Martina de Marcos, to direct 2 days of education in schools as part of her 2018 tour, which began in Mexico and ended in Ushuaia.

IN KIN D CONTRIB UTIONS: Equivalent to USD $1.436

MON E TARY CONTRIB UTIONS:

AREA

USD

Culture

$18.195

13%

Sport

$3.067

Social development

$8.772

Education

$104.129

78%

Extension

$1.131

$135.295

100%

USD

Socio-environmental initiatives

Francisco Lobos, Multiexport Foods’ Sustainability and Corporate Affairs Manager delivers the Dalcahue’s Mayor, Juan Hijerra, the company’s contributions after the unfortunate fire in the city hall.

Salmo Days in Magallanes.

Coanil Run 2018.

Community of Chayahué and Multiexport Foods’ employees joined the beach cleanup.

115

G R I I N D E X O F CO NTE NT S

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MULTIEXPORT FOODS

GRI INDEX OF CONTENTS We prepared the following index of contents according to GRI standards and the topics emerged as material to the analysis carried out.

GRI STANDARD

CONTENT

GRI 102

GENERAL CONTENTS

OMISSION

PAGE

1. PROFILE OF THE ORGANIZATION

102-1

Organization name

102-2

Activities, brands, products and services

102-3

Location of Headquarters

102-4

Location of operations

102-5

Ownership and legal structure

102-6

Markets served

102-7

Size of the organization

102-8

Information about employees and other workers

102-9

Supply chain

102-10

Significant changes in the organization and its chain ofsupply

102-11

Precautionary principle or approach

102-12

External initiatives

102-13

Affiliation to associations

94 102-104105

2. STRATEGY

102-14

Statement from senior executives as decision makers

102-15

Impacts, risks and main opportunities

3. ETHICS AND INTEGRITY

102-16

Values, principles, standards and code of conduct

102-17

Mechanisms of advice and ethical concerns

4. GOVERNANCE

102-18

Governance structure

102-19

Delegation of authority

102-20

Executive level responsibility for economic, environmental and social issues

102-21

Consultation of interest groups on economic, environmental and social issues

102-22

Composition of the highest governing body and its committees

37-39

102-23

President of the highest governing body

102-24

Nomination and selection of the highest governing body

102-25

Conflicts of interest

102-26

Role of the highest governing body in selecting purposes, values and strategy

DoesnÂ´t apply 14

GRI index of contents

OMISSION

119

GRI STANDARD

CONTENT

PAGE

102-27

Collective knowledge of the highest governing body

102-28

Evaluation of the highest governing bodyâ&#x20AC;&#x2122;s performance

102-29

Identification and management of economic, environmental and social impact

102-30

Effectiveness of risk management processes

Omit

102-31

Evaluation of economic, environmental and social issues

Omit

102-32

Role of the highest governing body in the elaboration of sustainability reports

Omit

102-33

Communication of critical concerns

Omit

102-34

Nature and number of critical concerns

Omit

102-35

Remuneration policies

102-36

Process to determine remunerations

102-37

Stakeholdersâ&#x20AC;&#x2122; involvement in remunerations

102-38

Total annual compensation ratio

Confidential

102-39

Percentage increase ratio regarding total annual compensation

Confidential

39 39 Omit

5. STAKEHOLDER PARTICIPATION

102-40

List of stakeholders

102-41

Collective bargaining agreements

102-42

Identification and selection of interest groups

102-43

Approach for the participation of the interest groups

102-44

Key issues and concerns mentioned

6.REPORTING PRACTICES

102-45

Entities included in the consolidated financial statements

102-46

Definition of contents in reports and coverage on the matter

102-47

List of material matters

102-48

Restatement of information

Wihtout changes

102-49

Changes in reporting

Wihtout changes

102-50

Period covered by the report

102-51

Date of the last report

102-52

Reporting cycle

102-53

Point of contact for questions about the report

102-54

Statement of preparation of the report, in compliance with GRI standards

102-55

GRI index of contents

102-56

External verification

116 Not verified

120

MULTIEXPORT FOODS

GRI STANDARD

CONTENT

OMISSION

PAGE

GRI 200

MATERIAL MATTERS - ECONOMIC STANDARDS

GRI 201

ECONOMIC PERFORMANCE

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

Omit

103-3

Evaluation of the management approach

Omit

201-1

Direct economic value

201-2

Financial implications and other risks and opportunities deriving from climate change

201-3

Defined benefit plan and other retirement plan obligations

201-4

Financial assistance received from the government

GRI 202

PRESENCE IN THE MARKET

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

202-1

Standard initial category salary ratio by gender against local minimum wage

202-2

Proportion of senior executives hired from the local community

GRI 203

INDIRECT ECONOMIC IMPACT

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

Omit

103-3

Evaluation of the management approach

Omit

203-1

Investment in infrastructure and supported services

203-2

Significant indirect economic impacts

GRI 204

ACQUISITION PRACTICES

103-1

Explanation of the material matter and its coverage

Omit

103-2

The management approach and its components

Omit

103-3

Evaluation of the management approach

Omit

204-1

Expenditure on local suppliers

GRI 205

FIGHTING CORRUPTION

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

205-1

Operations evaluated for risks related to corruption

205-2

Communication and training on anticorruption policies and procedures

205-3

Confirmed corruption cases and measures taken

Omit DoesnÂ´t apply

Omit

101-102

Not rated 100-101

102

Omit Not rated

GRI index of contents

OMISSION

121

GRI STANDARD

CONTENT

PAGE

GRI 300

MATERIAL MATTERS - ENVIRONMENTAL STANDARDS

GRI 301

MATERIALS

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

301-1

Materials used by weight and volume

301-2

Recycled goods used

301-3

Reused products and packaging materials

GRI 302

ENERGY

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

82-90

302-1

Energy consumption within the organization

82-90

302-2

Energy consumption outside the organization

Not rated

302-3

Energy intensity

Not rated

302-4

Reduction of energy consumption

302-5

Reduction of energy production requirements of products and services

GRI 303

WATER

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

303-1

Water extraction by source

303-2

Water sources significantly affected by water extraction

303-3

Water recycled and reused

GRI 304

BIODIVERSITY

103-1

Explanation of the material matter and its coverage

Omit

103-2

The management approach and its components

Omit

103-3

Evaluation of the management approach

304-1

Operation sites owned, leased or managed located within or adjacent to protected areas or areas of great biodiversity value outside protected areas

304-2

Significant impacts in biodiversity caused by activities, products and services

304-3

Protected and restored habitats

Doesn´t apply

304-4

Species on the IUCN Red List and in National conservation lists whose habitats are in areas affected by operations

Doesn´t apply

82-90 Not rated

Doesn´t apply 68

66-67 Doesn´t apply

122

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GRI STANDARD

CONTENT

OMISSION

PAGE

GRI 305

EMISSIONS

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

305-1

Direct GHG emissions (scope 1)

305-2

Indirect GHG emissions when generating energy (scope 2)

305-3

Other indirect GHG emissions (scope 3)

305-4

Intensity of GHG emissions

305-5

Reduction of GHG emissions

305-6

Emissions of substances depleting the ozone layer (ODS)

Doesn´t apply

305-7

Nitrogen oxides (NO), sulfur oxides (Sox) and other significant air emissions

Doesn´t apply

GRI 306

EFFLUENTS AND WASTE

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

306-1

Water discharge according to its quality and destination

306-2

Waste by type and disposal method

306-3

Significant spills

306-4

Transportation of hazardous waste

306-5

Bodies of water affected by water discharges and/or runoffs

GRI 307

ENVIRONMENTAL COMPLIANCE

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

307-1

Non-compliance with environmental legislation and regulations

100

GRI 308

ENVIRONMENTAL EVALUATION OF SUPPLIERS

103-1

Explanation of the material matter and its coverage

Omit

103-2

The management approach and its components

Omit

103-3

Evaluation of the management approach

Omit

308-1

New suppliers that have passed evaluation and selection filters according to environmental criteria

Not rated

308-2

Negative environmental impacts in the supply chain and measures taken

Not rated

GRI 400

MATERIAL THEMES - SOCIAL STANDARDS

GRI 401

EMPLOYMENT

103-1

Explanation of the material matter and its coverage

Uninformed

70 Omit 70 Doesn´t apply Omit Doesn´t apply

GRI index of contents

OMISSION

123

GRI STANDARD

CONTENT

PAGE

103-2

The management approach and its components

103-3

Evaluation of the management approach

401-1

Recruitment of new employees and personnel turnover

401-2

Benefits for full-time employees not given to part-time or temporary employees

401-3

Parental permission

GRI 403

EMPLOYMENT

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

403-1

Employee representation in formal company/employee committees regarding health and safety

403-2

Types of actions and work accidents, occupational illness, lost days and absenteeism frequency rates, and number of deaths due to work accidents or occupational illness

403-3

Employees with high incidence or high risk of illness related to their activity

403-4

Health and safety issues addressed in formal agreements with unions

GRI 404

TRAINING AND EDUCATION

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

404-1

Average hours of training per year per employee

404-2

Program to improve skills of employees and transition assistance programs

Uninformed

404-3

Percentage of employees regularly evaluated regarding performance and professional development

Uninformed

GRI 405

DIVERSITY AND EQUAL OPPORTUNITIES

103-1

Explanation of the material matter and its coverage

Uninformed

103-2

The management approach and its components

Uninformed

103-3

Evaluation of the management approach

405-1

Diversity in governing bodies and employees

405-2

Ratio of base salary and wage gap between women and men

GRI 406

NON DISCRIMINATION

103-1

Explanation of the material matter and its coverage

Uninformed

103-2

The management approach and its components

Uninformed

103-3

Evaluation of the management approach

Uninformed

406-1

Cases of discrimination and corrective actions taken

95 97 Omit 96 Omit

Uninformed

94 38-94 95

DoesnÂ´t apply

124

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GRI STANDARD

CONTENT

OMISSION

PAGE

GRI 408

CHILD LABOR

103-1

Explanation of the material matter and its coverage

Doesn´t apply

103-2

The management approach and its components

Doesn´t apply

103-3

Evaluation of the management approach

Doesn´t apply

408-1

Operations and suppliers with significant risk of cases of child labor

Doesn´t apply

GRI 409

FORCED OR COMPULSORY LABOR

103-1

Explanation of the material matter and its coverage

Doesn´t apply

103-2

The management approach and its components

Doesn´t apply

103-3

Evaluation of the management approach

Doesn´t apply

409-1

Operations and suppliers with significant risk of cases of forced or compulsory labor

Doesn´t apply

GRI 410

SECURITY PRACTICES

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

410-1

Security personnel trained in human rights policies or procedures

GRI 412

HUMAN RIGHTS EVALUATION

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

Uninformed

412-1

Operations subject to impact revisions or evaluations of human rights

Uninformed

412-2

Training of employees in human rights policies or procedures

Uninformed

412-3

Agreement and significant investment contracts with clauses regarding human rights or submitted for human rights evaluation

Uninformed

GRI 413

LOCAL COMMUNITIES

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

413-1

Operations with participation of the local community, impact evaluations and development programs

Uninformed

413-2

Operations with significant negative impacts - current or potential - in local communities

Uninformed

GRI 415

PUBLIC POLITICS

103-1

Explanation of the material matter and its coverage

97 Uninformed

46 47

108

GRI index of contents

OMISSION

125

GRI STANDARD

CONTENT

PAGE

103-2

The management approach and its components

103-3

Evaluation of the management approach

415-1

Contribution to political parties and/or representatives

GRI 416

HEALTH AND SAFETY OF CLIENTS

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

103-3

Evaluation of the management approach

416-1

Evaluation of impact of categories of products or services on health and safety

Uninformed

416-2

Cases of non-compliance related to impacts of categories of products and services on health and safety

Uninformed

GRI 417

MARKETING AND LABELING

103-1

Explanation of the material matter and its coverage

Uninformed

103-2

The management approach and its components

Uninformed

103-3

Evaluation of the management approach

Uninformed

417-1

Requirements for information and labeling of products and services

Uninformed

417-2

Cases of non-compliance related to information and the labeling of products and services

Uninformed

417-3

Cases of non-compliance related to marketing communication

Uninformed

GRI 418

CLIENT PRIVACY

103-1

Explanation of the material matter and its coverage

Uninformed

103-2

The management approach and its components

Uninformed

103-3

Evaluation of the management approach

Uninformed

418-1

Claims based on violations of client privacy and loss of client data

Uninformed

GRI 419

SOCIO-ECONOMIC COMPLIANCE

103-1

Explanation of the material matter and its coverage

103-2

The management approach and its components

106

103-3

Evaluation of the management approach

106

419-1

Non-compliance with laws and regulations regarding social and economic matters.

100

99 Uninformed 98

15-50

A ANNEX

Annexed

127

128

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