Bunge Sustainability Report

BungeSustainabilityReport2007 editionBrazil

Bunge Sustainability Report – 2007 editionResponsibleGrowthWe have overcome the industry crisis by restructuring ouroperations, focusing on business sustainabilityThe Brazilian agribusiness industry endured astrongly depressed market during 2005-2006,caused by weather and structural issues, suchas appreciation of the Brazilian currency – thereal, high transportation costs and an inefficienttax structure. With operations across the foodproduction chain, Bunge faced difficulties.Bunge took a series of steps to overcome thesedifficulties and to ensure better performancein our operations: originating, crushing andexporting grains and derivatives; mining andproducing fertilizers and animal nutrition rawmaterials; and creating food products for a widerange of consumers.In order to improve competitiveness bydecreasing costs, we had to review our headcount,promoting dismissals from directors to factoryemployees – a dramatic means, avoided up to thelast moment, but necessary to sustain Bunge’soperations in the country.Bunge is ranked by Valor Econômico, Você S/A andExame magazines as one of the best companiesto work for in Brazil, and we believe theserecognitions demonstrate that this processwas conducted in the best way possible, withtransparency and respect for employees.During 2006 conditions in the industry graduallyimproved, and Bunge continued with itsoperational and strategic restructuring to achievehigher efficiency and productivity, improvedinformation flow and better decision making.Our relationships with important stakeholderswere also highlighted. Bunge’s Customer Focusinitiative, implemented at the start of the year,became a regular part of our operations. Thisinitiative reflects our strategic priorities: getcloser to our customers, better understand theirneeds and offer them the best products andservices in the market.We are committed to furthering the well-beingof the communities in which we operate, andin 2006 we continued our outreach to ourstakeholders through Fundação Bunge (BungeFoundation) and other activities. Created morethan 50 years ago, Fundação Bunge coordinates alarge portion of the group’s social responsibilityprograms throughout Brazil. One of its primarygoals is to improve basic public education in thenation through programs such as ComunidadeEducativa (Educative Community), whichbrought together 508 volunteers and 7,000schoolchildren in eight states.

sumMARYStrategic Vision 07Organizational Profile 15Corporate Governance 25Relationships with Stakeholders 31Economic and Financial Performance 37Tax incentives 38Transparent results 38Environmental Responsibility 41Materials 41Energy 43Water 44Biodiversity 45Emissions, effluents, and waste 49Products and services 52Compliance 55Suppliers 55Social Responsibility 57Human Rights 57Work Practices 61Responsibility for the product 67Society 69Methodology and GRI Index 79This report presents consolidated information for 2006.

Bunge Sustainability Report – 2007 edition

Vision: Enhancing lives by improving the global foodand agribusiness production chain.Bunge’s Sustainability Policy – Brazil• Associate business objectives with social andenvironmental responsibility issues.• Go beyond mere compliance with local environmentallegislation and other requirements applicable to itsprocesses, products, and services.• Promote ongoing environmental improvement andsustainable development, applying managementprinciples, performance indicators, and environmentalrisk assessments.• Maintain an open and ethical posture in all businessactivities and relations.• Invest in the development of partner, whounderstand the concepts employed and present theirvision of the process.• Generate value, employment, income, and wealthfor the communities and countries in which thecompany operates.• Demonstrate social responsibility, striving to meetthe needs of the communities in which it operates andpromoting the responsible use of natural resources.• Contribute to the development of citizenship throughactions which enhance education and knowledge.Bunge’s Four Strategic PrioritiesWe focus on growth: We position Bunge forgrowth in the most attractive markets for ourproducts.We strive for efficiency: We workcontinuously to reduce costs and improveproductivity.Quality in services and products is apriority: We provide premium service andproduct quality so that farmers and customersturn to us first.Our operating model is unique: We base ourmodel on integrated but decentralized operationsand a strong culture built on shared values toachieve both the efficiency of a global entity andthe speed of a local business.In order to strengthen the food production chain, Bunge provides fertilizers to

STRATEGIC VISIONBecause Bunge is involved in all stages of thefood production chain, we address those issuesin our daily operations. Our presence around theworld increases our corporate responsibility, andour operations are conducted under the highestethical standards. Bunge’s Sustainability Policyconstitutes the basic directive for the company’soperations. It sets forth commitments that, on onehand, represent an increase in short-term costs,but on the other hand, bring lasting benefits tothe company and society in the long term.The concern with the environment andsustainability—a core value at Bunge since itsinception in 1818—has increased over the lastfew years. Climate change, the crisis in water andenergy supplies, and difficult agricultural industryperiods compelled the company to review itsprocesses, redirect resources, and better balance itsfertilizer production, grain origination and trading,processing and exporting, and food production forthe end consumer.National Agricultural PotentialDespite problems with structural issues (suchas the precarious conditions of logistics and taxsystems) and corresponding obstacles (such as theexchange rate policy), agribusiness today representsapproximately 25 percent of Brazil’s economy. In2006, the industry’s Gross Internal Product (GIP)reached R$540 billion (National AgricultureConfederation - CNA). This economic milestone isreflected in the trade balance: Agricultural exportsbrought revenues of US$49.42 billion for thecountry in 2006, and represented approximately 96percent of the country’s trade surplus.The good soil and climate conditions of Brazil,combined with its large territory, make itsfood-production potential one of the world’s best.Additionally, the country is home to 13 percent ofthe earth’s fresh water.Brazil is extremely wealthy in terms ofbiodiversity, with ecosystems as diverse as theAmazon, the Cerrados (Brazilian Savannas) andthe Mata Atlântica (Atlantic Rainforest). Thesustainable development of those areas—and ofthe animal and plant species that inhabit them—are vital to the development of the country andsurvival of the human species.This is the reason that the agribusiness industrymust commit to sustainable growth, and tofulfilling its mission to provide food withoutdegrading the environment.According to the Agriculture and Supply Ministry,there are approximately 390 million hectares offertile, arable land in Brazil. Ninety million of thosehectares do not belong to forest areas, and haveyet to be cultivated. These facts must be consideredbefore deforesting new regions for farming.Integration of the Production ChainMore than occupying unproductive areas, theinvestment in better yields is essential to improvingBrazilian agriculture’s competitiveness. The numbersof the 2005/2006 grain crops prove that this ispossible. According to CONAB (Companhia Nacionalde Abastecimento/National Supply Company), the120.2 million tons of grain harvested represent anincrease of 1.1 percent over the previous crop, despitea 4.4 percent reduction of the planted area.growers in exchange for products such as soybeans, coffee beans, corn, and sugar.

Bunge will not purchase soybeansfrom newly deforested Amazon areasAlthough IBGE (Instituto Brasileiro de Geografia e Estatística/Brazilian Geography and Statistics Institute) reports that the2005 soybean crop occupied only 0.3 percent of the Amazon biome, the expansion of agriculture borders is considered athreat to the rainforest.So on July 24, 2006, ABIOVE (Associação Brasileira das Indústrias de Óleos Vegetais/Brazilian Vegetable Oil Industry Association)and ANEC (Associação Nacional dos Exportadores de Cereais/National Cereal Exporters Association)—organizationsto which Bunge belongs—signed a document agreeing not to trade soybeans from newly deforested areas in the Amazonregion. The moratorium began after the October sowing, and is in effect for a two-year period.Under the agreement, Bunge and other agricultural companies work together with private entities, farmers associations,and government agencies to create a regional development policy that respects the environment and has long-term sustainability.Also as part of this process, in September Bunge promoted the first Sustainability Workshop, a meeting withrepresentatives from NGOs, government, customers, and academic experts to discuss the Amazon issue.The agreement has been classified by environmental NGO The Nature Conservancy, as “unprecedented, institutional, andvery important politically.”The Cerrado ProtectionAhead of the moratorium, Bunge already demanded from its suppliers environmental-legislation compliance, under thepenalty of contract termination. The Forest Code (Law 4771) stipulates, for example, that all landowners from all regionsmust leave untouched a percentage of their properties. Another stipulation is maintaining the natural vegetation on riverbanks, lakeshores, swamps, creeks, mountaintops, and plateau edges. Still, non-compliance occurs, largely from lack ofinformation and enforcement.Aware of its social responsibility, Bunge, in partnership with NGOs Conservation International and Oréades, developed theCerrado Reserve Rescue Project.Cerrado is the regional name given to Brazilian savannas, which cover the entire central plateau of the country. Consideredone of the world’s richest ecosystems in terms of plant and animal species, it is the origin of Brazil’s main hydrographicbasins: the Amazon, the Plata, and the Sao Francisco.The Cerrado Reserve Rescue Project began in 2003 to protect and preserve the Cerrado’s biodiversity in native areas ofprivate ownership. The project supports growers in regulating their land according to the legislation, and in December 2006,57 properties totaling more than 180,000 hectares were committed.To learn more about the Cerrado Reserve Rescue Project, please visit www.bunge.com.br/sustentabilidade_eng/parcerias.asp.10

STRATEGIC VISIONUsing fertilizers to boost agricultural productivityis critical in Brazil, where they are used at a lowerrate per hectare than in other countries. Bungecan play a large role in this strategy, since it ispart of all facets of fertilizer production—fromthe extraction of raw materials and productdevelopment, to retail sales and advancedapplications.In Brazil, Bunge helps strengthen the foodproductionchain by providing fertilizers togrowers in exchange for products includingsoybeans, coffee beans, corn, and sugar.Bunge also invests in growers’ education andqualification. The implementation of PrecisionFarming, for example, makes it possible torationalize the use of resources and to optimizethe application of raw materials and fertilizersusing equipment with Global Positioning Systems(GPS) that captures satellite signals to collect soiland production samples.The biggest challenges in promoting productionchainintegration in a country as large as Brazilare transport infrastructure and logistics. Theroad system (the most expensive and in the worstcondition) represents around 60 percent of cargotransportation, while rail and waterways (the bestfor the operations) are underexplored.Bunge promotes continuous investments in ports,such as the TGG/Termag complex (Terminalde Granéis do Guarujá-Terminal MarítimoSince August 1, 2006, Brazilian companies arerequired by law to specify the amount of transfats on the labels of their products. The WHO(World Health Organization) recommends amaximum fat intake of 1 percent of total dietarycalories—2.2 g/day for a 2,000-calorie diet.do Guarujá/Guarujá Grain Terminal-GuarujáMaritime Terminal)—a partnership with ALL(América Latina Logística/Latin America Logistics)and the Amaggi group. This particular investmentamounts to R$440 million, and will facilitate theexport of grains and fertilizers through rail androad interconnections to the maritime port.From the Field to the TableOffering good quality food products ataffordable prices is the biggest challenge of theBrazilian food industry, whose revenues totaledapproximately R$190 billion in 2006. Bunge,at its plants, processes soybeans and produces11

vegetable oils, animal nutrition products,vegetable fats, margarine, and mayonnaise. It is theleader in wheat flour and pre-mixes productionfor the food processing and food service industries(food products, bakeries, and dining).Over the last few years, Bunge has simplified itsportfolio of brands and food products, gainingcompetitiveness in the market and moving closerto its consumers. The reduction of the number ofSKUs (stock keeping units, which designate thedifferent product options available by weight andtype, among other variables) from around 800 toapproximately 280 contributed to the efficiencyof the supply chain.Making products at lower cost means makingthem more widely accessible to consumersat all income levels. But price should not bethe only product attribute. Bunge offers foodproducts and oils. Cyclus brand products containsOmega 3 fatty acids, that promote lowering incardiovascular risks and problems.Bunge also has proven responsive to societal demandsby reducing trans fats in margarine. Our companynow offers low-trans and non-trans products.12

STRATEGIC VISIONCommitment to Industry InitiativesBunge participates in the Round Table on ResponsibleSoy (RTRS) discussions that include other companiesin the industry and NGOs such as WWF International.The objective is to develop global solutions to reducethe negative impacts of soybean crops.The second RTRS meeting took place in September2006 in Assumption, Paraguay. The more than200 participants in the meeting, including Bungerepresentatives, agreed to establish global criteriaand world-wide soybean-production monitors in nomore than 18 months.In another commitment, on April 24, 2006, Bungesigned the National Slavery Eradication Pact, aninitiative of the Instituto Ethos de ResponsabilidadeEmpresarial (Ethos Corporate Responsibility Institute)in a partnership with the International LaborOrganization (ILO). By doing this, Bunge, whichalready required compliance with labor laws in itscontracts with growers, publicly committed to notwork with growers convicted of labor crimes. Later,ABIOVE (Associação Brasileira da Indústria de ÓleosVegetais/Brazilian Vegetable Oil Industry Association)also adhered to the pact, thus promoting thecommitment of all of its members.EXPLANATION OF THE CAMPAIGN LAUNCHED BYAN NGO AGAINST BUNGE ALIMENTOS:• For ideological reasons, an NGO is against transgenic food products, and thus putspressure on major manufacturers of food products to stop processing raw materialswith characteristics of transgenic products.• Bunge Alimentos was chosen, according to the NGO’s own website, for its leadershipin the markets where it operates, and not because it is not complying with thelegislation.• The Brazilian legislation (Law 11105 of 03/24/05, and Decree 4680 of 04/24/03), inaddition to allow cropping and trading of transgenic soybeans, stipulates that productswith more than one percent of transgenic elements must be labeled as such.• Bunge follows the Brazilian legislation in full. All products used by the company(oils, margarine, mayonnaise, fats, and soy-based beverages) either do not contain orcontain less than one percent of transgenic products, and consequently, does not labelany of it products as transgenic.• Natural or semi-processed products (soybeans and bran) are sold according tocustomers’ requirements and the applicable legislation, also regarding GMO labeling.• Bunge, throughout its 100 years in Brazil, has always respected the consumer, offeringproducts with recognized quality and high performance. And it intends to continue tomeet the needs of its consumers with innovation, technology, quality, and safety.13

Bunge Sustainability Report – 2007 editionView inside a plant.Uruçuí – PI14

ORGANIZATIONAL PROFILEConsolidatedLeadershipBunge restructures its operations in the country and invests in newproducts to achieve more efficiency, profitability, and sustainabilityFounded in 1818 with the name Bunge & Co.,Bunge arrived in Brazil in 1905. Over more than100 years of history in the country, it became oneof the main agribusiness companies, achievingleadership in the acquisition of grains and theprocessing of soybeans and wheat; the productionof fertilizers and ingredients for animal nutrition;the manufacture of food products; and in portservices. Bunge is one of the largest exportersin Brazil: The first in agribusiness, second inoverall cargo transport, and first in road logistics,contributing to a positive trade balance andhealthy economy.There are three Bunge companies in Brazil thatoperate in an integrated manner along the entirefood production chain. Bunge Fertilizantes, votedin 2006 the best company in the industry byreaders of Agrinova magazine, has two mining/processing complexes, in Cajati (SP) and Araxá(MG). In Cajati, it extracts apatite—the mineralused to produce nutrients for animal nutrition.The Araxá phosphate mine provides raw materialsfor producing fertilizers.Bunge Alimentos is the leader in trade of grains suchas soybeans and wheat, in addition to working withcorn, sorghum, sunflower, cotton, and sugar cultures.Its industrial units process soybeans and producevegetable oils and fats, soybean meal, margarine,and mayonnaise. Bunge Alimentos is the leader inwheat flour and pre-mixtures production for thefood processing and food service industries (foodproducts, bakeries, and dining).Fertimport, created in 1947 to provide logisticssupport to Bunge’s operations in Brazil, offersdifferent services that make up the most completerange of options in the industry: maritimebrokerage, port operation, port terminals, customsclearance, management of import and exportprocesses, integrated logistics, and e-services. The16 Ferimport units are strategically distributed onthe main ports in Brazil and Argentina.15

Bunge in Brazil (2006)Main companies: Bunge Alimentos S/A, BungeFertilizantes S/A, and Fertimport S/A.Company type: Closed limited liability corporation.Headquarters: Bunge Alimentos – Rod. JorgeLacerda, km 20 (Gaspar/SC); Bunge Fertilizantes– Av. Maria Coelho Aguiar, 215, Bloco D, 5ºandar(São Paulo/SP); Fertimport – Rua Frei Gaspar, 22, 8ºandar (Santos/SP).Industries: Fertilizers, agribusiness, food products,and port services.Net revenues: R$ 17.78 billion.Direct employees: 8,767, on December 31. Facilities:63 operating units and distribution centers, and 107warehouses, silos, and transport units.Geographic presence: Operations in 16 states inBrazil, in all regions of the country.Contribution to Bunge’s revenues: 20%.Controlling company and global headquarters:Bunge Ltd., White Plains, New York, USA.Bunge in the world: It operates in more than 30countries in Europe, Asia, North America, and SouthAmerica, with more than 20,000 employees.Bunge’s Brands in BrazilFood Products – Consumer: Delícia, Primor, Soya,Cyclus, Salada, and Andorinha (sold by Bunge)Food Products – Commercial: Maxten, Bunge Pró,BentamixFertilizers and Animal Nutrition: Iap, Manah,Serrana Fertilizantes, Ouro Verde, SerranaNutrição Animal. Sub brands: Nitrogran, Fertiap,Fosmag, Arad, Ourofós, Foscálcio.Bunge – Participation in the Brazilian Market (2006)around 30%share of the fertilizer marketR$ 2.35 billionexports33%share of the edible oil market16

ORGANIZATIONAL PROFILENew ProductsIn 2006, Bunge added one more product to itscommodities portfolio: sugar. In addition to beingthe product with the highest export growth in 2006(together with alcohol), it is one more “currency”that the grower can use to purchase fertilizers fortheir plantations. Bunge’s entry into this market wasfacilitated by its knowledge of the entire agribusinesschain, including sourcing, logistics, and sales.Bunge Fertilizantes has innovated and developed anew product: BIPHOR TM (Bunge Innovative Productsfor Hiding, Opacity, and Refraction). It comes as analternative to the only existing white pigment forpaints, titanium dioxide.Bunge Goal: By 2008, transform agriculturalcommodities into more elaborate andcomplete nutrients, adapted to new trendsand customers’ needs.Developed by the company’s New Technologyteam, in a partnership with the Unicamp ChemistryInstitute (Universidade Estadual de Campinas),BIPHOR TM is manufactured using aluminumphosphate nanoparticles. The pigment is in semiindustrialscale production to undergo all necessarytests, including tests with customers, before it hitsthe market.Preliminary studies indicate that, in addition to beingmore environmentally sound, BIPHOR TM is betterthan its competitor with respect to better yield andlonger life. The product constitutes a promisingopportunity for Bunge to explore the potential of thephosphorous production chain even further.Production of Soya brand bottled oil, Suape – PENUMBER 1 IN BRAZIL TURNS 30A leader in the trade of oils, Soya turned 30 in2006. The product is a symbol of innovationthrough time: It revolutionalized the market in thelate 1980s with the design of its can—by Chinesedesigner David Y. Pound—and in 1996 it wasalready sold in recyclable containers.To celebrate this 30th anniversary, Bunge redesignedthe Soya packaging and logo, and conducted astrong communications campaign with events forits customers. Today, more than 80 million unitsof Soya oil are produced each month in six Bungeplants in Brazil: Passo Fundo (RS), Gaspar (SC),Luiziânia (GO), Luis Eduardo Magalhães (BA),Ipojuca (PE), and Rondonópolis (MT).According to a 2006 Nielsen survey, Soya ended theyear with more than 28 percent share of the Braziliansoy oil market. It is sold in more than 200,000points-of-sale in Brazil and exported to 15 countriesin Latin America and Africa. Its brand is one of the 10most recognized by Brazilian consumers.17

Operations RestructuringThe 2005-2006 Brazilian agribusiness crisisrequired drastic measures. In order to reduce costs,increase efficiency, and make its business sustainable,Bunge Fertilizantes and Bunge Alimentos had toclose down 12 units and dismiss around 2,000employees in all levels in that period—from seniordirectors and managers to shop floor workers.A large number of employees went through a transferor relocation process to avoid being dismissed. Thecity halls of the municipalities that were going tolose Bunge’s presence were notified in advance andsupported Bunge community relations efforts.Added to the decrease in Bunge’s revenues, the crisisin the industry started an internal reflection processthat motivated Bunge to restructure its operationsin Brazil. The company was seeking a betterbalance among its operations in the agriculturalcommodities markets, fertilizers, and food products.Started in 2005 and consolidated in 2006, therestructuring brought changes to the managementmodels of Bunge Fertilizantes and Bunge Alimentos.The new structure follows a strategy focused on thecompany’s business areas: agribusiness, fertilizers,and food products.Part of some back-office areas (accounts payable,accounts receivable, accounting, and IT) wereoutsourced to match other areas not directly relatedto production (including maintenance, asset security,reception, general services, and cafeteria). Twobusiness units were created at Bunge Fertilizantes:Fertilizers and Nutrients. A similar process was carriedout at Bunge Alimentos, with the creation of theAgribusiness and Food Products business units.In order to make Bunge even more competitiveand to streamline strategic decision-making, thenew management model is based on the followingguidelines:• Increase focus on the customer and results• Improve management methods• Simplify the decision-making and communicationprocess• Improve goal sharing• Stimulate integration between areas• Ensure agility, reliability, quality, and discipline• Reduce operating expenses• Increase operations productivity and reducetransportation costsBunge Ltd.Bunge Brasil Holdings BV (Holanda)Fertimport S.A.Bunge Alimentos S.A.Bunge Fertilizantes S.A.Terminal Marítimo do Guarujá S.A. – TermagBUNGE´S GROUPControlled and AffiliatedCompanies in BrazilSantista International Ltd.Bunge Paraguay S.A.Bunge Alimentos Holding B.V.Gardone Consultoria e Serviços Ltda.Dinelsur Corp. S.A.Santista Export Ltd.Ceval Internacional Ltd.Ceval Internacional Participation Ltd.Moinho Jauense Ind. e Com. de Alimentos Ltda.Ceval Centro-Oeste S.A.Cereol do Brasil Ltda.Serra do Lopo Emp. e Part. S.A.Bunge Armazéns Gerais Ltda.Pico da Caledonia Emp. e Part. S.ATGG Terminal de Granéis do Guarujá S.A.MBB Comércio e Serviços Ltda.Serrana Logística Ltda.Fertilizantes Ouro Verde Ltda.Bunge Fertilizantes International Ltd.Bunge Fertilizantes International Participation Ltd.Bunge Fertilizantes Participation Ltd.Amoniasul Ltda.Fosbrasil S.A.Macra Administração e Serviços S/C Ltda.IFC - Indústria de Fosfatados Catarinense Ltda.IFC - Indústria de Fertilizantes de Cubatão S.A.Terminal Marítimo do Guarujá S.A. – TermagBunge Argentina S.A.Bunge Paraguay S.A.18

ORGANIZATIONAL PROFILEThe Uruçuí exampleAt the end of 2003, Bunge Alimentos opened a soy processing plant in Uruçuí (PI) with an operationalcapacity of 2.2 thousand tons/day. The company invested R$420 million to build the plant, andbrought high economic and social development to the region.In addition to generating direct and indirect jobs, it invested strongly in educating the new employees,built schools and houses, remodeled the hospital, contributed to road improvements (installing roadsigns, painting cross-walks, and installing curbs), offered English and IT courses, implemented programs,and promoted several cultural and social activities for the community. Bunge also contributed to betterlocal infrastructure and trade. After the unit was installed, 70 new businesses and organizationsopened in Uruçuí—among them stores, hotels, services, schools, and offices of Sebrae (Brazilian Microand Small Business Support Service), as well as grower and trade associations.Uruçuí is a city with a population of 17,500, located 300 miles from Teresina. It has a huge potentialfor agribusiness, with four million hectares suited for agriculture (an area the size of Switzerland). It isalso a strategic port for its proximity to European and American ports, in addition to the ease of accessto important markets such as Fortaleza and Recife.However, as a result of Bunge’s restructuring in Brazil, part of the operations in the unit was suspendedin 2005 and included the dismissal of some employees. This process was conducted in the bestpossible way, with the participation and support of city hall. It was also a good example of the successof Bunge’s communications plan (see more in the Social Responsibility chapter), conducted with theutmost transparency and respect for all involved.Today, the Uruçuí unit generates 260 direct jobs (200 for people from the city and the region),and 2,000 indirect jobs. It fully meets all legal and environmental requirements, and has the mostup-to-date process and environmental management process, with ISO 9001, ISO 14001, HCCP, and GMPcertifications.19

HIGHLIGHTS FROM BUNGE’S HISTORY1818 – Johann Peter Gottlieb Bunge, abusinessman of German origin, foundsBunge & Co. in Amsterdam.1859 – Bunge transfers itsheadquarters to Antwerp, Belgium.It starts doing business in Asia andAfrica, led by Edouard Bunge, thefounder’s grandson.1938 – Bunge startsphosphate ore miningoperations and phosphatefertilizer, raw materials, andnutrients sales through thefoundation of Serrana S.A.de Mineração, to explore alimestone reserve in the Serrado Mar range (SP).1997 – Bungeacquires CevalAlimentos, a leader insoybean processingand bran and oilproduction. In thatsame year, it acquiresIAP, a traditionalfertilizer manufacturerin the country.1884 – Edouard’s brother Ernest Bungerelocates to Argentina, where he foundsthe affiliated company Bunge Y Born.1905 – Bunge acquiresminor interest in thecapital of S.A. MoinhoSantista Indústrias Gerais,a company in Santos (SP).It expands its operationsin Brazil by acquiringseveral companies inthe food, agribusiness,chemical, and textileindustries, among others.1923 – Bungeacquires Cavalcanti& Cia., in Recife(PE), creatingSanbra, later calledSantista Alimentos.1955 – The MoinhoSantista Foundationis constituted,nowadays namedthe Fundação Bunge,promoting thecientific, artistic andcultural productionin the country.1818 1859 1884 1905 1923 1938 1955 199720

ORGANIZATIONAL PROFILE1998 – Bunge acquires theOuro Verde fertilizer brand,buying part of the capital fromTakenaka, the brand’s owner.1999 – The headquartersis relocated to WhitePlains, New York (USA).2003 – Bunge announcesa partnership with DuPont,creating Solae to work withsoybean functional ingredients.2006 – Bunge restructuresoperations in Brazil andmanagement model.2005 – Bungecelebrates 100 years ofoperations in Brazil.2000 – Bungeacquires theManah fertilizermanufacturer.Bunge Fertilizantes iscreated by a merge ofSerrana, Manah, Iap,and Ouro Verde, andBunge Alimentos iscreated by mergingCeval and Santista.2002 – Bunge startspurchasing control ofCereol, expanding itsbusiness in the ingredientsarea, strengthening itsposition in the edible oilindustry, and openingaccess to new businessfronts, such as biodiesel.2001 – The companygoes public on theNew York StockExchange.In Argentina, itacquires La PlataCereal and becomesthe largest soybeanprocessing company inthat country.1998 1999 2000 2001 2002 2003 2005 200621

2006Rankings• Valor 1000 and Valor Grandes Grupos, from the Valor Econômiconewspaper• Best of the Istoé Dinheiro magazine. Best in social andenvironmental management, in the agribusiness industry• Largest and Best of the Exame magazine• Best Companies to Work for, of the Exame magazine• Best of Agribusiness, of the Globo Rural magazine22

ORGANIZATIONAL PROFILEAwardsBUNGE COMPANIES IN BRAZILAwardTop of Mind Rural 2006 for the Manah brandTop Agribusiness Award for the Manah brandAgrimais Award as the Best Fertilizer CompanyEntityRural magazineIEPQAgrinova magazine‘A Granja do Ano’ Award for the Manah brand A Granja magazineEnvironment, Sustainable Development, and SocialResponsibility AwardBest Customer in 2005Finalist of the Customer Service Excellence ModernConsumer AwardDF Brand Product – ExportGratitude Motion for donations to the FIA50 Best HR Professionals in BrazilTop ExportFritz Müller Award (CDAL Gaspar Project)Instituto Ambiental Biosfera andInstituto Brasileiro de EstudosEspecializadosFerroviária magazineConsumidor Moderno magazineFederação das Indústrias do DistritoFederal (Fibra)Ourinhos City Council (SP)Associação Brasileira de RecursosHumanos e da Gestão & Editora (ABRH)ADVB/SCFundação de Meio Ambiente de SantaCatarina150 Best Companies to Work for in Brazil Exame and Você S/A magazinesLargest company in Santa Catarina, highest grossincome in Santa Catarina, and largest food company inthe South of BrazilBest Supplier of the Year‘Carrinho Agas’ – Refrigerated Food Products Award‘Destaque Marketing 2006’ Award for the launch ofDelícia olive oil – “A success directly from Spain to Brazil”Amanhã magazineAssociação Catarinense deSupermercados (ACATS)Associação Gaúcha de Supermercados(Agas)ABMN ( Associação Brasileira de Marketinge Negócios)23

Bunge Sustainability Report – 2007 editionBars Mill, Cajati – SP24

CORPORATE GOVERNANCEAll INTHE SAMEdirectionTransparency, shared management, and adherence to globalcommitments strengthen corporate governance at BungeBunge’s activities in the many countries where itoperates follows a centralized strategy, defined bythe Global Executive Committee. The developmentof this strategy, however, is decentralized. Allcompanies in the group—including the three thatoperate in Brazil—have autonomy to make tacticaland operational decisions at a local level.Two documents play an essential role in theapplication of Bunge’s global strategy: Bunge’sCore Values and the Ethics Code. Core Values arefocused on promoting the well-being of customers,employees, stockholders, and communities wherethe company operates.The Ethics Code establishes principles for conductingbusiness and must be followed by Bunge’s directors,managers, and all other employees throughout thecompany. The top executive of each company isresponsible for implementing and monitoring theapplication of the code.Bunge’s companies in Brazil are closed companies,and are guided by transparency in their internalprocedures. The Advisory Board was created tosupervise those processes, and its members areresponsible for discussing scenarios and sharingtheir opinions on strategic decisions. The board isled by the Bunge’s worldwide chairman and CEO,and is composed of managing directors of BungeFertilizantes and Bunge Alimentos, as well as externalmembers such as professionals recognized in theirindustries and former presidents of other companies.It meets regularly to assess trends in the domestic andforeign markets, and to discuss the management ofBunge companies in Brazil.In daily operations, corporate governanceis carried out by directors, managers, andsupervisors of the companies. The ExecutiveCommittee is formed by directors of Bungecompanies, and is responsible for analyzing thestrategy and tactical plans of each company.25

BUNGE’S ETHICS CODEBunge Limited has adopted the following Code of Ethics for itself and its subsidiaries and affiliates(together “Bunge”) to set forth its principles of business ethics. Bunge is a global company andmust be sensitive to the cultures and customs of the countries where it operates and respect thecommunities and environment where it does business.The main points of the Code are listed below.1. All Bunge directors, officers and employees must comply with the following principles:A. Conflicts of interest: Directors, officers and employees cannot engage in any activity that mightcreate a conflict of interest, or the appearance of one, between the directors, officers and employeesand Bunge. A conflict of interest occurs when an individual’s private interests interfere in any way, oreven appear to interfere, with the interests of Bunge.B. Compliance with Laws: Bunge is committed to being a good corporate citizen of all the countries inwhich it conducts business. Because of this commitment directors, officers and employees must complyin all respects with all the laws, rules and regulations, including insider trading, in each jurisdiction inwhich it does business, as well as comply with Bunge’s policies governing business activities abroad.C. Fair Dealing and Integrity: One of Bunge’s most valuable assets is its reputation for fairness andintegrity. Each employee, officer and director should deal fairly with Bunge’s customers, suppliers,competitors and employees.D. Protection and Proper Use of Bunge Assets: All employees, officers and directors should protectBunge’s assets and ensure their efficient use.2. All transactions shall be properly approved and accurately reflected on Bunge’s books and records.3. All directors, officers and employees are responsible for ensuring the accuracy, completeness andtimeliness of Bunge’s public disclosure.4. Bunge actively promotes ethical behavior in all its business activities.5. Each member of the Bunge Limited Executive Committee who is a Chief Executive Officer of aBunge operating division shall annually certify that he or she has implemented and monitored compliancewith this Code for all Bunge companies under his or her supervision and has reported eachmaterial violation thereof to the Legal Department.6. A waiver of this Code for executive officers or directors of Bunge will only be granted by the Boardof Directors or a committee of the Board and must be promptly disclosed to shareholders.7. All directors, officers and employees of Bunge are required to adhere to this Code. Directors, officersor employees who violate this Code will be subject to disciplinary action and possible dismissal.Bunge’s Core Values• Integrity : Honesty and fairness guide our every action.• Openness and Trust: We value and reward openness and trust.• Teamwork: We value individual excellence and work as a teamacross business boundaries and geographies for the benefit ofBunge, our customers and partners.• Commitment: We are dedicated, passionate, and personallyresponsible.• Entrepreneurial Spirit: We are entrepreneurs.• Farmer/Customer Focus: We focus on our farmers and ourcustomers to promote positive, trusting relationships.See detailed values at our website inwww.bunge.com.br/quemsomos/valoresbunge.aspwww.bunge.com/about-bunge/bunge-style.htmlAdvisory BoardMembersAlberto Weisser (President)Alysson PaolinelliArmínio Fraga NetoEliezer Batista da SilvaMário Alves Barbosa NetoOscar de Paula Bernardes NetoRoberto Teixeira da CostaSérgio Roberto Waldrich26

CORPORATE GOVERNANCEBunge assesses the competence, experience, andbusiness visions of candidates to board of directorspositions. Once admitted, directors have specifictraining programs such as the Executive DevelopmentProgram (EDP) and the Senior Managers Meeting.The EDP program is a global initiative involvingexecutives worldwide to improve management andbusiness skills. The Senior Managers Meeting programis an annual meeting of Bunge directors worldwideto attend seminars and discuss strategies andpartnerships with international educational entities toexpand the knowledge of top management staff.The top management staff of each company isappraised according to the monitoring of goalsestablished with management. The president isresponsible for assessing the fulfillment of thosegoals, taking into account factors such as investmentlevel, projects developed, and environmental andsocial management issues.The economic, social, and environmentaldevelopment in each Bunge companys in Brazil isassessed based on management-defined indicators.By monitoring those indicators, managers generatereports that help the company define perspectives,study scenarios, and make decisions. There isalso a Crisis Management Committee, at global(international), corporate, and local (units) level.For its involvement in soybean purchasing andprocessing, Bunge takes part in the Round Tableon Responsible Soy, an international initiative forsustainability of the crop. By doing this, thecompany takes part in the definition of conductrules for the different parts of the productionchain in that market. It is important to note thatthis industry has been growing gradually andgenerating important environmental, social, andeconomic impact.TransparencyBunge is a multinational corporation withheadquarters in the United States, which follows bestpractices in corporate-governance. In addition, itadheres to the rules defined in the North AmericanSarbanes-Oxley law, created to prevent tax fraud andgive transparency to financial information providedby companies with registered offices in the U.S.Reliability in Bunge’s information and financialstatements is a top priority. In addition to externalauditors, employees have communications channelsavailable with total confidentiality to inform ofsuspicious accounting practices, internal controls,conflicts of interest, and corruption. The BungeLimited website has a system dedicated to receive thistype of information, which is examined by the AuditCommittee and does not result in retaliation againstthe informing employee, whose identity is protected.Bunge’s internal auditors have, as part of theirroutine work, permanent procedures about possibleconflict-of-interest situations, as well as ways toinstruct the audited areas to avoid conditions oractions that may be considered conflicts. The internalauditors’ work is conducted in the central officesof Bunge companies in Brazil (extending to jointventures when applicable), plants, and regionaloffices. The investigation of possible conflicts ofinterest includes a wide range of hierarchical levels.Shared ManagementIn order to ensure the participation of employeesin the decision-making process and directionadjustments, Bunge conducts discussion eventsthroughout the year, and offers permanentcommunications channels between topmanagement and other hierarchical levels.27

One of those events is the Bunge Dialogue, a meetingof its leaders with the participation of directors andmanagers. The objective of these informal meetingsis to promote the exchange of information onthe company’s current and future issues. BungeAlimentos also gathers its top executives twice ayear for its Directors Workshop. Additionally, staffmeetings are held three times a year, with localleadership aiming at a complete, participativeassessment of main performance indicators andseasonal results, as well as goal-oriented action plans.The website (www.bunge.com) and the Bungeintranet collect opinions from direct employees andstakeholders using specific tools for this purpose,ensuring confidentiality. Bunge Alimentos maintainsthe Idea Bank, while Bunge Fertilizantes expects tolaunch the Hello Bunge program. Both exist to hearideas from company-wide employees.There are also committees created to performspecific functions, described below.Safety Committee – Independent groups that havebeen working at the units since 2005 and will beimplemented in storage silos in 2007. Made up by thehigh hierarchical levels in safety issues management,they include the process manager in industrial units(chairman of the committee), first-level leaders inthe company (representatives of their respectiveproduction areas), and employees of the Safety,Occupational Health, and Environment areas. Eachindustrial unit has its own committee. The group hasan executive profile, and its role is to give practicalresponses to items and demands that affect thefacility’s safety. It conducts, every month, a crossinspectionwith a predefined calendar for the entireyear, when all areas in the unit are inspected. Pendingissues are classified using three severity criteria,considering problem severity, urgency, and trendaspects. The silo committees will include regionalmanagers, storage coordinators, safety technicians, andindividuals in charge of the silos.Kaizen Groups – Their objective is to discuss andanalyze the company’s processes to find ways toachieve quick and sustainable results. They are aimedat creating and stimulating a culture of continuousimprovement and teamwork. They are formed byone internal or external consultant and groups ofeight to 12 participants, including people from thearea of the event under discussion, supporting areas,and individuals not related to the activity. Processesare formalized through an assessment – an event toevaluate and explore opportunities for improvement.The event’s priorities and objectives are defined by themanager responsible for the area in question. Resultsare followed up for a period of one year to verify thatprogress is sustained.Innovation Committee – Formed by top managementmembers, responsible for supporting the innovationprocess, the function of this committee is to gather,organize, and provide resources and strategic guidanceto ideas stimulated in all levels of the organization. Aspecific area to address innovation has also been created,working together with the R&D area to develop strategicpartnerships with customers, suppliers, and researchentities, both in Brazil and abroad.CommitmentsBunge supports or endorses agreements andinitiatives to promote citizenship, conservation ofthe environment and consumer health.Associations/OrganizationsBunge participates actively in the following associationsand organizations:• ABAG – Associação Brasileira de Agribusiness(Brazilian Agribusiness Association)• ABIOVE – Associação Brasileira das Indústrias deÓleos Vegetais (Brazilian Vegetable Oil Industry Association)• ABIA – Associação Brasileira das Indústrias deAlimentação (Brazilian Food Industry Association)• ANEC – Associação Nacional dos Exportadores deCereais (National Cereal Exporters Association)28

CORPORATE GOVERNANCECommitment/AgreementHow Bunge participatesMillennium Development Goals (MDGs)A commitment signed in 2000 by 191 UnitedNations member countries. It establishes goalsto improve the quality of life and preserve theplanet’s natural resources.It supports and broadcasts the MDGs through partnerships with retailchains and contributes to achieve the following objectives:1. “End hunger and poverty” – Through its products aimed at the baseof the social pyramid.2. “Reach basic global education” – The Fundação Bunge promotesseveral actions to improve elementary education in public schools.3. “Promote gender equality and women’s autonomy” – Through itsnon-discrimination policy that opens equal opportunities for male andfemale professionals.7. “Ensure environmental sustainability” – Through the application ofBunge’s Sustainability Policy that ensures respect to the environmentin its production processes.8. “Establish a worldwide partnership for development” – Throughbusiness dealings and partnerships with NGOs and other companies inour industries.Slave Work Eradication PactAn initiative of the Ethos Institute, theInternational Labor Organization (ILO), and theRepórter Brasil NGO. The signatory companiesundertake to respect human and labor rights intheir entire production chain.Our agreements with suppliers already had clauses that requiredcompliance with labor rights. In order to strengthen thiscommitment and participate in the public initiative, Bunge signedthe pact on April 24, 2006.Amazon Soybean MoratoriumAn initiative of the ABIOVE (Associação Brasileira daIndústria de Óleos Vegetais/ Brazilian Vegetable OilIndustry Association) and ANEC (Associação Nacionaldos Exportadores de Cereais/ National Associationof Cereals Exporters). The signatories undertaketo not buy soybeans from newly deforested areasin the Amazon region for a period of two years,commencing with the date of this agreement.Bunge acted as a leader in negotiating this commitment becauseit believes that soybean cultivation are not need threaten to theAmazon biome as long as the activity is executed in a sustainablemanner. The company signed the commitment on July 24, 2006.Round Table on Responsible SoyAn initiative that includes companies and NGOsworldwide. It promotes sustainable soybean crops.The company participates in this forum that meets, periodically, indifferent parts of the world since 2005.• CONAFLOR – Comitê Nacional de Florestas (National ForestsCommittee)• ABMR&A – Associação Brasileira de Marketing Rural eAgronegócios (Brazilian Rural Marketing and AgribusinessAssociation)• FIESP – Federação das Indústrias do Estado de São Paulo(Industry Federation of the State of São Paulo)• FIESC – Federação das Indústrias de Santa Catarina(Industry Federation of the State of Santa Catarina)• ANDA – Associação Nacional para a Difusão de Adubos(National Association for the Diffusion of Fertilizers)• APDC – Associação Plantio Direto no Cerrado (CerradoNo Tillage Association)• ANDIFÓS – Associação Nacional para Difusão de Fontesde Fósforo na Alimentação Animal (National Association forthe Diffusion of Phosphorous Sources in Animal Nutrition)• SINPRIFERT – Sindicato das Indústrias de Matérias-Primaspara Fertilizantes (Fertilizer Raw Materials IndustryTrade Union)• SIACESP – Sindicato de Adubos e Corretivos Agrícolas doEstado de São Paulo (Fertilizer and Corrective AgriculturalProducts Trade Union of the State of São Paulo)• SINDIRAÇÕES – Sindicato Nacional da Indústria deAlimentação Animal (Animal Nutrition Industry NationalTrade Union)29

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RELATIONSHIPS WITH STAKEHOLDERSCARDSON THE TABLEBunge strengthens partnerships and bets on sharedmanagement as the path to sustainabilityThe competitiveness and success of a companydepend on the quality of its relationship withdifferent audiences. Knowing the needs of itscustomers and those of the communities where itoperates, discussing the impact of its operationswith society and governments, as well as involvingemployees in executing its strategy are paths tobuilding long-term sustainability.In 2006, Bunge met with growers, customers, andrepresentatives from the government and NGOs todiscuss solutions and alternatives to address issuesrelated to the food-production chain, such as theexpansion of the agriculture borders in the Amazonregion. The Sustainability Forum, as anotherexample, gathered soybean, corn, wheat, cotton,sugar cane, and coffee growers to discuss theimportance of responsible social, environmental,and economic practices. The Cerrado ReserveRescue Project promoted several qualification eventssuch as the Natural Resources and EnvironmentalPlanning Course—using Geographic InformationSystems aimed at agronomy students from theUniversidade Estadual do Piauí and growers in thestates of Goiás, Mato Grosso do Sul, and Piauí.In order to maintain this ongoing dialogue,Bunge keeps a series of communications channelsavailable to receive opinions and contributions orto announce company actions. The Bunge no Campo(Bunge in the Field) newsletter, for example, is amonthly publication addressed to growers in thewhole country, with a circulation of 20,000. TheFertimport Rumos newsletter, also issued monthly, hasa circulation of around 3,000 materials, and bringsrelevant discussions to agribusiness and foreign trade.The internal monthly magazines Nosso Campoand Planeta Bunge address company issues andtopics related to sustainability in the country.Their circulations are around 4,000 and 7,500,respectively. Additionally, the company providesintranet, bulletin boards, suggestion boxes, andcorporate television programs.Prepared annually, the Bunge Sustainability Report isreaching its fourth edition with the mission ofinforming, in an objective and transparent manner,the progress of the company towards sustainability,as well as defining goals and strengthening therelationship with the different audiences interestedin Bunge’s activities. In order to prepare thispublication, the Corporate CommunicationsExecutive Office met with representatives from thecommercial, marketing, finance, industrial, products,and human resources areas, among others, from thethree companies in the group in Brazil, as well asfrom the Fundação Bunge. The process allowed us tocollectively assess the stage of including sustainabilityin Bunge’s activities in 2006, as well as to determinethe need to adjust direction and define short,medium, and long term goals.31

Listening to the CommunityThe community in Rio Grande (RS)complained of the bad quality of theair in the town on thermal inversiondays—an atmospheric phenomenonthat hinders gas dispersion.The particle material, ammonia,and smoke fluorides emitted bysmokestacks at Bunge and othercompanies in town cause discomfortto the population, althoughthey do not pose health risks.One of the “low ceiling” days,as they say there, happened on14 September. As a result of thecomplaints, the Bunge plant inRio Grande—three miles from thetown—stopped its production linecompletely. In seven other criticaldays in 2006 there was a reductionof the workload. Bunge offers thecommunity direct contact with theunit’s environment managementthrough a toll-free phone number.In order to fulfill its commitment toact preventively and avoid emittinggases above the limits, Bunge andother fertilizer companies in townhired a meteorological service capableof predicting the occurrenceof the climate phenomenon up to72 hours in advance. The companiesestablished alert levels andcan, if needed, reduce their productionor even halt it completelyin preparation for the meteorologicalphenomenon. It is intended tostart monitoring activities in April2007 to prepare the town for thewinter, a critical climate period inthe region.Bunge continuously trains its employeesin production and operationof environment control systemsto improve plant performancewith respect to emission control.The agreement stipulates that companiesget closer to the Rio Grandecommunity and provide periodicinformation on the production offertilizers and procedures adoptedto minimize environmental impact.Since 2003, the unit has all environmentallicenses required by law, aswell as the ISO 14001 certification,a collection of environmental managementstandards. The companymonitors the emission of pollutingmaterials and sends a semi-annualreport to the FEPAM (Fundação Estadualde Proteção Ambiental/EnvironmentalProtection State Foundation).The document is a resultof several agreements betweenBunge, the entity, and members ofthe community that originated duringdiscussions to try to find solutionsto the problem.Crop rally visiting a farm.32

RELATIONSHIPS WITH STAKEHOLDERSCustomers and End ConsumersLaunched in December 2005 and effectivelyimplemented in January 2006, the CustomerFocus initiative is a worldwide program whoseobjectives are to create differentials, perceive themarket potential better, understand customers’demands, and ensure their loyalty to Bunge’sproducts and services. Since the beginning ofthe year, all levels in the organization underwentoperational changes and process innovation tostrengthen the relationship with customers fromthe grower to the end consumer, transformationindustry, and retailers.Under the Customer Focus initiative, severalprojects and actions were implemented andconsolidated within Bunge Fertilizantes, BungeAlimentos, and Fertimport units, promotingstrong internal integration and significantlyimproving the relationship with the differentBunge customer groups.The creation of the Bunge Bakery Cup, apartnership with the Brazilian Baking andConfectionery Industry Association (AssociaçãoThe consumer call center services receivesuggestions and complaints from all overthe country on toll-free 0800 numbers.Among the results from those calls is thelaunch of the 250g package of CyclusSaúde margarine.Brasileira da Indústria de Panificação e Confeitaria,or ABIP), on the other hand, strengthened therelationship with the baking industry. BetweenFebruary and July, there were seven regionaleditions, with more than 2,000 recipes entered. For2007, a bakery course in Portugal will be awardedto the winners. For more information on theawards, visit the www.padariabunge.com.br website.BRAZILIAN FARMER AWARDThe grower, at the same time grain supplier andfertilizer buyer, is a primary focus of Bunge’sactions. Bunge presents the Brazilian FarmerBunge Award every year to recognize initiativessuch as employee training, process innovation,and productivity. In 2006, 14 growers from allregions in the country were honored in theSocial Responsibility, Environment, Productivity,Partnership, and Technical areas. Farmers withproperties of all sizes attended the event and hadthe opportunity to follow the discussions in theSustainable Agriculture Forum conducted duringthe award ceremony (see more about the Forum inthe Environmental Responsibility chapter).A TOUR IN THE PRODUCTIVE BRAZILFifteen thousand miles traveled through 14 statesin all regions of the country. These were the numbersof the third edition of the Crop Rally, an expeditionthat analyzes grain production conditionssponsored once more by Bunge Alimentos andBunge Fertilizantes, among other companies. Morethan getting to know agricultural areas, the expeditionrepresents a valuable opportunity to makedirect contact with growers countrywide.The four teams of agronomists and techniciansconducted qualitative and quantitative field surveys.Each team covered three to five differentroutes collecting data on soybean and corn productivity—thecrops chosen for representing 73percent of Brazilian grain trading. The assessmentsincluded 72 agricultural areas, with informationfrom approximately 1,500 field samples.Based on final data, the technicians submitted adiagnosis of the grain crop, indicating the mainfacts related to the climate, the technology used,and pests and diseases that affected productivity.Farmers’ comments, opinion and needs also wereaddressed by the teams, providing a rich source ofdata for the company.33

EmployeesIn its day-to-day operations, Bunge seeks a balancebetween achieving business results and meeting theexpectations of its 8,700 direct employees, so that,at the same time, all professionals feel appreciatedand accountable. To make this possible, thecompany must be assessed internally when it comesto the quality of its products and services, and itsbusiness ethics.The first step in making the employees comfortablewith Bunge is to offer a safe and stimulating workenvironment. The continuous training we provide isan investment in each professional’s personal growth,and also benefits the company by maintaining a staffof qualified employees. A fair compensation policyand investments in integration activities are ways inwhich Bunge tries to achieve employee satisfaction(see the Social Responsibility chapter).Business Leaders play a strategic role in engagingemployees. Therefore, Bunge invests in developinga global and strategic view of the business forprofessionals at executive, management, andsupervisory level. Worldwide programs includethe Executive Development Program (EDP), explained inthe Corporate Governance Chapter, for managerswho report directly to members of Bunge Limited’sexecutive committee and the Leadership DevelopmentProgram (LDP) that involves management leadersfrom Bunge companies worldwide, includingaround 400 in Brazil. This program is divided intothree modules: Strategy, Process Management,and Personnel Management, in addition to theProductivity, Quality, Safety, and Environment(PQSE) and Customer Focus initiatives.The Management Development Program (MDP) involvesleaders and coordinators from Bunge Fertilizantes andBunge Alimentos. Currently it has approximately 600participants from all areas in the company, who aretrained by an internal team and external consultants.EMPLOYEES PARTICIPATE IN PRODUCT DEVELOPMENTThe opinions of its employees are also important to Bunge Alimentos with respect to developing newproducts. In the Sensorial Panel, several samples of products under development are tested by groupsof 80 employees, on average. They taste the products and complete a form with the product’s sensorialperception and evaluation. Depending on the result, the formulation may be reviewed and changed,with subsequent submission to another panel. The Product Innovation, Research and Development departmentcoordinates this work, and forwards the results to the Product Marketing area and to suppliersof raw materials.INCENTIVESAND RECOGNITIONExcept for the members of the Advisory Committee,who receive a pro-labor compensation, all employeesat Bunge receive variable compensation dependingon individual performance and company results.The Reward (Food Products), Siro (Fertilizers), andProfert (Fertimport) programs value and recognizeachievements, teamwork, and individual efforts.There are Safety, Quality, Customer focus, Costs,and Productivity goals.Bunge Alimentos, Bunge Fertilizantes, and Fertimportdistributed to their employees, throughthese three programs, approximately R$ 35.5 millionin 2006.HEALTHYWORK ENVIRONMENTIn 2006, Bunge Alimentos received recognition forits good personnel management policy:• It was ranked 7th among companies with morethan 10,000 employees in the Best in PersonnelManagement ranking of the Valor Econômiconewspaper;• It was included in the Você S/A and Examemagazines “The Best Companies to Work For”guide.34

RELATIONSHIPS WITH STAKEHOLDERSSocietyBunge also maintains relationships with severalsocial entities that have a relevant role in companybusiness. The partnerships with NGOs, for example,helped the Company to develop several projectsand to participate in groups such as the Round Table onResponsible Soy (RTRS), which seeks global solutionsto reduce negative impacts from soybean crops (seethe Strategic Vision chapter for more details).In the public sphere, Bunge entered into agreementswith pertinent agencies in its industry, suchas EMBRAPA (Empresa Brasileira de PesquisaAgropecuária/Brazilian Agricultural ResearchCompany), which includes training Bungetechnicians, donating fertilizers for EMBRAPA’sfields, and a dialogue on promoting sustainabilityin agribusiness. Those dialogues have been extendedto members of other government agencies in eventspromoted by Bunge—such as the Brazilian FarmerAward. (See this chapter and the Environmental Responsibilitysection for more details on this award.)SuppliersThe relationship between Bunge and its suppliersis based on an effort to fulfill all the needs ofour partners and on the performance of severalcontractual obligations, from environmentallegislation to labor rights. As an essential part ofthe company’s production chain, suppliers areaddressed by Bunge through solid and efficientpartnerships whose objective is to improve andrationalize its production methods. This workinvolves the continuous participation of oursuppliers in projects, forums, and workshops ontopics that are relevant to the area, such as theexpansion of the agricultural borders and theconservation of biomes. (See the Strategic Vision and SocialResponsibility chapters for more details.)Precision farming: interaction and ongoing development.35

Bunge Sustainability Report – 2007 editionHarvest in Rio Grande – RS36

ECONOMIC AND FINANCIAL PERFORMANCE2006: a year ofrecoveryfor agribusinessAfter a retraction in 2005, the industry takesthe first steps toward recovery in late 2006The last quarter of 2006 represented a new stepin the recovery of the Brazilian agribusinessafter the severe retraction faced by the industryin 2005/2006. The price recovery trend ofagricultural commodities, especially soybeansand corn, and the increase of fertilizer demandobserved from the third quarter contributed toimprove the business climate in some marketsegments where Bunge operates in the country. Butthe change in scenario has not been enough yetto prevent the losses registered in annual resultsof controlled companies – as in the previous fiscalyear. Among the factors that contributed to forcerevenues down in the period is the increase invaluation of Brazilian real by 10 percent comparedto the US dollar.With the higher exchange rate, the soy complexexports – the main product in national sales withdirect impact on Bunge Alimentos’s business – oncemore failed to register a favorable performance,down 1.8 percent in comparison with 2005.External sales of the grain increased by 6 percent,but shipments of soybean meal and oil decreasedby 16 percent and 3 percent, respectively, accordingto data from the Foreign Trade Agency (Secex– Secretaria de Comércio Exterior).However, despite the increased valuation ofthe Brazilian real, the recovery of agriculturalcommodities prices in the international market,led by corn and soybeans, caused by, amongother factors, the increase of the demand for oilto the emerging biofuels industry, create a morepromising scenario for business recovery – andprofitability – for Bunge in Brazil. Two segments aregetting all the attention: biodiesel and ethanol.Bunge Alimentos, a fully-owned Bunge subsidiary,closed 2006 with total net sales of R$9.75 billion –a number 2,69% below the R$10.02 billion figureof 2005. On the same comparison, the companyhad a loss of R$ 84.16 million, against a net profitof R$ 141 million in the previous fiscal year.37

In 2006, Bunge Alimentos’s exports totaled theequivalent of US$ 2.26 billion, an amount 6,1%above that of 2005. Even with this result, thecompany retained its position at the top of theranking of the largest exporters in agribusiness,with a trade balance of US$ 1.97 billion.Bunge Fertilizantes, which also producesingredients for animal nutrition, closed 2006 withnet sales equivalent to R$ 3.94 billion, recording adecrease of 16% compared to 2005. The companyrecorded a net profit of R$ 39.4 million. Thecompany expects to increase revenues in its miningoperations in Brazil, in addition to completing itsfertilizer terminal in the Santos Port.Fertimport closed the year with net revenues ofR$ 93.27 million, close (-0.8%) to the R$ 94.05million recorded in 2005. The net income totaledR$ 11.59 million. In this case, revenues are lowercompared to the other controlled companies, but,as a service provider, Fertimport’s net margin isconsiderably smaller.In 2006, Bunge invested R$ 357 thousand ininfrastructure, in partnership with local citygovernments. In Araxá (MG), for example, Bungeparticipated in the building of the Public Ministryfacilities, public jail building, and in the MaxNewman road ring.Tax IncentivesState governments have been granting tax incentivesto industrial and agro industrial enterprisesconsidered prioritary to the state to implement,relocate, revitalize, and expand already installedmanufacturing plants. Prioritary enterprises arethose that purchase, whenever possible, rawmaterials and supplies produced and/or extractedin the state, use local labor, have a guaranteedconsumer market, may promote the creation ofsmall and micro businesses, and explore, preferably,the agricultural and mineral resources.It is common for companies like Bunge toreceive, when establishing themselves in newregions thus generating jobs and incomesignificantly, local and state incentives in manydifferent forms. From local donations in theform of land in industrial areas to tax exemptionand long-term financing, those benefits becomerelevant to the Bunge when deciding to installunits or invest in a certain region.TransparentresultsSuppliersCost of assets, materials, and servicespurchased (R$ thousand)Companies 2005 2006Alimentos 8,204,747 7,802,540Fertilizantes 4,364,834 3,549,378Fertimport 41,653 47,159EmployeesSalaries, pensions, benefits, severance pay(R$ thousand)Companies 2005 2006Alimentos 313,940 297,800Fertilizantes 262,726 223,162Fertimport 26,535 30,083Interest on debts and loans (R$ thousand)Companies 2005 2006Alimentos (141,862) 53,515Fertilizantes 119,729 249,726Fertimport 816 14,87938

ECONOMIC AND FINANCIAL PERFORMANCEInterest on own capital (R$ thousand)Companies 2005 2006Alimentos 59,500 42,000Fertilizantes — —Fertimport 4,070 4,909Total tax paid (R$ thousand)Companies 2005 2006Alimentos 878,110 830,335Fertilizantes 81,201 59,179Fertimport 18,254 14,240Increase/decrease in income retained at theend of the period (R$ thousand)Companies 2005 2006Alimentos 75,321 81,514Fertilizantes 122.941 52.488Fertimport 23,702 16,495Donations to the community, society, and othergroups (R$ thousand)Companies 2005 2006Alimentos 4,620 2,864Fertilizantes 3,177 2,851Fertimport 200 65439

Bunge Sustainability Report – 2007 edition40

ENVIRONMENTAL RESPONSIBILITYGROWTHin environmentalmanagementIn response to growing demands for environmentalpreservation, Bunge took responsibility to comply with conceptsand guidelines stipulated in its Global Environmental PolicyThe commitment to corporate environmentalresponsibility is present in all operating levels atBunge’s companies in Brazil. Recycling, selectivegarbage collection systems, reutilization of industrialwaste, reduction of polluting gas emissions, and thecreation of green areas are some of the programsprioritized by the company.The Global Environmental Policy, a collection ofmeasures and concepts to promote environmentalquality, guides our environmental management.Through this policy, the company undertakes to:• comply with the environmental legislation andother requirements applicable to its processes,products, and services;• promote continuous environmental improvementand sustainable development, applyingenvironmental management principles, performanceindicators, and environmental risk assessments;• provide and support training on environmentalmanagement, respect to the environment, and theresponsibility of its employees to environmentalperformance;• measure and assess the environmentaldevelopment associated with the processes of itsfacilities, products, and services;• demonstrate social responsibility by seeking tomeet the environmental needs of the communitiesand promoting the responsible use of naturalresources;• seek pollution prevention, waste minimization,reuse, and recycling in its processes, products,and services, when technically feasible andeconomically justified.MaterialsThe three Bunge companies operate in distinctindustries, and execute different activities. Theconsumption and type of materials used reflectthe peculiarities of each company, none of whichuse waste from sources outside the organization.The tables below describe the materials whose useis most significant in each company—those withthe highest consumption and, at the same time,highest costs in absolute numbers.Bunge Fertilizantes consumed a total ofapproximately 7,535,400 tons of raw materials,8,300 tons of packaging materials, and 237,500liters of lubricants.At Bunge Alimentos, grains processed and sold in2006 totaled approximately 24,332,100 tons.41

Site reforested with eucalyptus, Gaspar – SCMaterials Consumption at Bunge Fertilizantes2005 2006Phosphates (t) 3,300,000 4,319,074Nitrogen (t) 1,200,000 1,434,338Sulphur (t) 400,000 332,032Chloride (t) 1,600,000 1,450,000Packages (t) None available 8,309Lubricants (l) None available 237,520Materials Consumption at Bunge Alimentos2005 2006Grains sold (soybeans, wheat, and corn) 13,856,229 15,597,875Grains processed (soybeans, cottonseed, sunflower,canola, and wheat)9,770,772 8,734,209TOTAL 23,627,001 24,332,08442

ENVIRONMENTAL RESPONSIBILITYEnergyBunge’s energy matrix in Brazil is highlydiversified: We use energy from hydroelectricpower plants, biomass, and certified lumberfrom reforesting and deforesting authorized byenvironmental agencies. Bunge Fertilizantes’industrial complexes in Araxá (MG) and Cajati (SP)have sulphuric acid plants with power generation.In Araxá, this co-generated energy corresponds toapproximately half of the local consumption.Bunge has a plan to expand its reforested areasto become self-sufficient in renewable-originlumber by 2012. The plan’s goal is to expandby 8,000 hectares annually. Since 2005, whenthe goals were established, 25,505 hectares havebeen incorporated, of which 9,432 hectares wereincorporated in 2006. A best-practices programfor thermal and environmental management forfarmers to improve productivity and minimizeimpacts was included in the process. A technicalreport was prepared by STCP Engenharia deProjetos and technically validated in its social,environmental, and economic aspects by SAVCOR/INDUCOR, a Finnish company, both with largeexperience in forests, recognizing the energymatrix selected as the best option available in themarket. The use of biomass such as woodchips,rice husk, sugar cane bagasse, and eucalyptustimber corresponds to approximately 75% of thethermal energy consumed by Bunge Alimentos.Currently, Bunge Alimentos also uses lumber fromthird-parties that is, in some cases, from nativeforests – in this case, with its origin confirmedby a deforestation authorization provided by theBrazilian Environment and Renewable ResourcesInstitute (Ibama – Instituto Brasileiro do MeioAmbiente e dos Recursos Renováveis).Due to its concern with energy efficiency, Bungedevelops projects to improve the performance ofthe fuels used. There are examples of equipmentadjustments that allowed the company to replace 20percent of lumber consumption with rice husk andsugar cane bagasse waste.Some of Bunge Fertilizantes’ initiativesimplemented to increase energy efficiency includethe use of renewable-origin lumber from its ownreforesting areas in Araxá (MG) and Cajati (SP),and replacing road transportation with carpets formoving Foscálcio brand products in Cajati (SP).The Cajati plant uses biomass to dry Foscálcio andlimestone, a fuel that provides 54 percent of thetotal energy demand.The Rondonópolis unit implemented a projectto reuse thermal energy that, in its adjustmentstage, has already reduced its vapor consumptionby 8 percent compared to other similar plants.The Suape unit operates under the concept ofmaximum use of heat from the deodorizingprocess and from chemical reactions in thehydrogenating process, which eliminates the needto use a central steam boiler.CARBON CREDITS IN GUARÁIn 2002, in order to reduce the costs of drying fertilizers in the Guará (SP) plant, Bunge started studies toreplace liquified petroleum gas with lumber. At the same time, Bunge’s administration in White Plains (USA)suggested studies for new projects that would target the concepts stipulated in the Kyoto Protocol, called CDMs(Clean Development Mechanisms) and Carbon Credits.An installation project for using lumber in two fixed grilles of the drying systems was developed.The equipment showed excellent functionality and return on investment, representing fuel savings ofapproximately R$ 6 million/year.Processes to develop the Carbon Credits Project were initiated in the Interministry Global Climate ChangeCommission, the Brazilian authority designated for the Clean Development Mechanism (CDM) of the KyotoProtocol. On May 11, 2006, the Science and Technology Minister and President of the Interministry GlobalClimate Change Commission, Sérgio Machado Resende, sent the Guará Biomass Project Approval Letter toBunge, recognizing that the program will help Brazil achieve sustainable development and authorizing itssubmission to the CDM Executive Council.Potential results: Reduction of CO2 emissions by 98,000 tons between 2003 and 2009.Actual results: A report was prepared indicating a reduction of 40,400 tons of CO2 emitted betweenSeptember 2003 and October 2006.43

Biomass SuppliersThe guidelines of the project include:• The use of degraded areas to avoid deforestation• The use of alternative waste• Reutilization of other agricultural processes to generate power (such as sugar canebagasse, rice husk, and brachiaria, among others)• Compliance with clauses concerning legal social and environmental requirements• Evaluating the conformity with social and environmental criteria in all projects and theimplementation of the STCP audit programTypes of fuel used by the Bunge in BrazilENERGY (J)IndustryDiesel BPF GLPNaturalgasWood Charcoal WoodchipsRicehuskSugarcanebagasseAcquiredelectricityGeneratedelectricity*Total (J)%renewablebiomassAlimentos 1,81E+11 1,35E+11 5,33E+15 9,02E+14 1,26E+14 1,30E+15 7,66E+15 83Fertilizantes** 2,69E+14 1,79E+14 3,61E+14 1,80E+14 1,30E+14 8,10E+13 1,35E+15 1,07E+15 4,16E+14 4,04E+15 33Fertimport 1,19E+13 1,19E+13TOTAL 2,69E+14 1,79E+14 3,61E+14 1,80E+14 1,30E+14 8,10E+13 6,68E+15 9,02E+14 1,26E+14 2,38E+15 4,16E+14 1,17E+16 66* Sulphuric acid plant** Araxá, Cajati, Cambé, Candeias, Canoas, Cascavel, Cubatão, Guará, Jaú, Maceió, Paranaguá, Ponta Grossa, Rio Grande, Rondonópolis, São Luis and UberabaWaterBunge’s units’ water sources include: Surfacewater, underground water, and public watersupply. The main consumer units are the BungeFertilizantes’ Araxá (MG) and Cajati (SP) plants,which get water from the Capivarinha Creek inthe Araxá municipality, and the Jacupiranguinhariver in Cajati.Bunge companies try to use water resources asbest as they can, reusing and recirculating waterin their processes. We can say that reutilizationis still low in relation to the total consumption,but good initiatives have been launched toimprove efficiency.At Bunge Alimentos, the Uruçuí (PI), Luiz EduardoMagalhães (BA), Luziânia (GO), and Suapê (PE)plant facilities use recycled water. This water is usedfor irrigation and washing floors and areas with nocontact with refrigeration products and systems.The Luiz Eduardo Magalhães (BA), Luziânia (GO),and Uruçuí (PI) units reused, in 2006, 313,963 m³of water for irrigation. The water reuse project forthe Effluent Treatment Station (ETS) for use in theJaguaré (a district in São Paulo) unit refrigerationtowers is undergoing technical adjustments. Inthe Luziânia, Luiz Eduardo Magalhães, and Suapê(PE) units, water from the ETSs is used for grassirrigation, especially during drought periods. InSuapê, it is used in toilet tanks.At Bunge Fertilizantes, the Araxá (MG), Cajati(SP), Cubatão (SP), and Rio Grande (RS) unitsreuse water. In Araxá, approximately 90 percent ofthe total water is reused; in Cajati, 1 percent; andin both Cubatão and Rio Grande, approximately30 percent. The other units (Candeias, Uberaba,Guará, Rondonópolis, and Ponta Grossa) do notreuse and/or recirculate, but water consumptionin these units is low.Fertimport reuses approximately 40 percent of thewater that goes through the ETS to asperse piles ofstored sulphur (potable water and rainwater).44

ENVIRONMENTAL RESPONSIBILITYUSE OF WATER RESOURCESUnitsTotal water consumptionin 2006 (m 3 /year)% recycled or reused water in relation tothe total volume usedAraxá 30,814,440 89.05Cajati 34,952,000 0.8Cubatão 1,345,116 30FertilizantesRio Grande 84,975 30Guará 139,724 -Candeias 11,228 -Ponta Grossa 77,300 -Uberaba 65,313 -LEM 767,530 19.8AlimentosLuziânia 404,263 12note: the data from the Rondonópolis unit is not included.Uruçuí 310,000 42BiodiversityThe land that Bunge owns, leases, or managesin biodiversity-rich habitats makes up a LegalReserve in Araxá (MG), formed by the GreenRing, the Hotel Rádio Park, and the Mata daCascatinha, and an area of approximately 6,000hectares in Cajati and Jacupiranga (SP), bothpart of the Mata Atlântica biome. The first hasapproximately 119 hectares of land adjacentto the phosphate mine in Barreiro de Araxá.The other has approximately 3,500 hectares ofpreserved native forest, in medium and advancedstages of regeneration.The Bunge companies in Brazil, as part of theirsustainability policy, maintain several initiatives toprotect and restore native ecosystems and speciesin degraded areas and in places where humandevelopment has had more limited impact.In addition, they administer environmentalprograms to foster greater awareness andunderstanding of ecology and conservation intheir employees, partners, and communities.Some programs developed and/or supportedby Bunge companies positively impact speciallyprotected areas. The Cerrado Reserves RescueProject, in the Emas-Taquari Corridor, and thePlanned Use of the Cerrado Project are examples45

of those practices. Through a partnership betweenthe Fundação Bunge and CI (ConservationInternational), with the support of the OréadesGeoprocessing Nucleus (an NGO based inMineiros/GO), the Company completed theEmas-Taquari pilot project for conservation ofthe rich Cerrado biodiversity. Initiated in 2003in the Emas-Taquari corridor, the program hastwo main, interrelated components: creating of anetwork of privately-owned reserves and helpingfarmers create reserves and the recovery areas intheir properties as determined by the BrazilianForestry Code. With the success of the pilotproject in 2005, in addition to support growersto comply with the environmental legislation,the partnership seeks to integrate private andpublic entities in the regional planning of theUruçuí-Mirador corridor landscape. Studiesare also being conducted to find forms ofproviding conservation incentives for growers,working those attributes in the supply chain andencouraging them to adopt best environmentalpractices.Throughout 2006, Bunge Fertilizantes worked toprotect and restore native ecosystems and species indegraded areas. It developed and organized projectsto revitalize the use of the Mata da Cascatinha, inAraxá, Minas Gerais, and create a cushion belt oflegal reserve land between the industrial complexand the metropolitan area. The recovery of areasdirectly degraded by mining operations is includedin the Degraded Areas Recovery Plans (DARPs),bound to their environmental licenses.Bunge Alimentos does not own, lease, or manageland in rich biodiverse environments. Its activitiesand operations do not provoke negative impactsto the environment in specially protected orsensitive areas such as Conservation Units. Bungehas been working on different projects to protectand/or restore native ecosystems and species indegraded areas. The main ones are:BUNGE NATUREIts main objective is to install ELC (Environmentaland Leisure Centers) near Bunge facilities thatadvance environmental protection and provideeducational programs and recreation for thecommunity. Currently, Bunge Nature has twoELCs: one in Gaspar, Santa Catarina, and anotherin Jaguaré, São Paulo. In 2007, Bunge expects toinstall two more ELCs in other areas where thecompany has a strong presence.FIGUEIRA BRANCA RESERVEThis is a 300-hectare area for preserving nativeand Atlantic Rainforest species and for use inenvironmental education activities in the AtlanticRainforest biome. The objective is to have the areaofficially sanctioned as a Natural Heritage PrivateReserve (RPPN – Reserva Particular do PatrimônioNatural). The process was started by identifyingthe existing animals and plants through atechnical study conducted by FURB (UniversidadeRegional de Blumenau) researchers. The resultsfrom the partnership were the identificationof the rich local biodiversity (see list below)and a plan to use it in environmental researchPomar Project (Pinheiros River banks), São Paulo – SP46

ENVIRONMENTAL RESPONSIBILITYand education activities. The actions includebuilding a center for study activities, preparationof trails to ensure visitor safety, and a visualcommunication program on the existingspecies in the area. The Reserve is expected toopen in 2007.Some animal species identified in the area include:• 185 bush species, two of which endangered• 78 Lepidoptera species• 40 aquatic macroinvertebrated species(morphospecies)• 16 fish species• 14 amphibious species• 115 birds species, 38% of which endemic in theAtlantic Forest and six of them endangered species• 9 bat species, two of them endemic in theSouthern Atlantic Forest and one listed asendangered• 25 mammal species, seven of which areconsidered synergetic, other seven are rare, andone is endangeredENVIRONMENTAL RECOVERY PROGRAMThis project, managed through a partnership withthe Universidade Regional de Blumenau (FURB),works to recover riparian areas (ecosystems thatoccur along rivers and streams) in the Itajaí Valley.Its objectives are to rehabilitate degraded areasalong the Itajaí-Açu river and its effluents and todevelop more efficient techniques for stimulatingrecovery of riparian environments. The projectincludes a vivarium that produces up to 100,000native species per year.Results in 2006• 572,539 seeds collected• 58,560 seeds germinated• 18,434 seedlings donated• 12,248 seedlings planted• 101,575 m2 total area• 45,075 m2 planted area• 12,225 m2 for researchThe following goals were defined for theenvironmental recovery project in 2007:• Diversify the genetic species bank• Reach 150 matrices for the current 30 species• Increase the yield of collected seeds from9% to 25%• Increase the production and planting of seedlings• Increase the number of Research Units (RUs)from three to four• Strengthen partnerships (create up to 12partnerships)• Increase collaboration with area owners (conductworkshops, qualification courses, etc.)Working in urban areasBunge Fertilizantes is one of the partners in ProjetoPomar (the Orchard Project) an government initiativein the state of São Paulo to plant trees and landscapenine miles along the bank of the Pinheiros River, inSão Paulo, the state’s capital city. The project is auditedby ISO 14000, and its main objective is to recoverthe city’s urban landscape. Projeto Pomar alsoplays an important social role by training gardenerswho work on the project. The skills and knowledgethey gain qualifies them to go on to do additionalgardening work.Projeto Pomar has a nursery for 30,000 seedlings,including native species, which it uses to replant alongthe river bank. The project has helped recuperatethis degraded area, formerly considered one of themost blighted in the city, and has encouraged thereturn of some native animal species as well.47

Environmental Education Center in AraxáThe Bunge Fertilizantes Environmental EducationCenter, located in Araxá, Mato Grosso, was foundedon April, 22, 1990, to develop educational and culturalactivities for its employees and the local community.It seeks to educate and promote awarenessabout environmental issues and sustainability.Employees and the local community, students in particular,responded enthusiastically to the center fromits opening and continue to visit its facilities and participatein activities hosted there.The main goals of the center are: Promote the increaseof environmental awareness among local employeeswith the goal of 100 percent participation incenter activities over a four-year period; contributeto the education of 20 percent of the grade schoolteachers in the Araxá school district; supplement environmentaleducation in schools through nature hikesand workshops; and disseminate information aboutenvironmentally responsible habits and practices.Numerous activities were conducted in 2006 with employees,students, and teachers, including courses,seminars, workshops, and environmental training.Environmental Education Center, Araxá – MGATTENDANCE – 1990 – 2006Guided visits with students from the municipality 27,947Guided visits with students from other cities 4,144Extension Course on Environmental Education for Araxá students 3,294Cascatinha for a Day Project 989Environmental Education activities with employees 8,463Environmental Education activities with communities and schools 18,857Holiday Camp with employees’ children 5,018Environmental Education activities with employees’ spouses 625Qualification course for environmental monitors 875Environmental Education course for teachers and principals 344Total 70,55648

ENVIRONMENTAL RESPONSIBILITYEmissions, Effluents,and WasteBunge is not characterized as a significant emitterof greenhouse gases, but has ongoing initiatives fortheir control and reduction. At Bunge Fertilizantes,the units that perform this monitoring (Araxá,Cajati, Cubatão, and Ponta Grossa) emitted115.861 tons of carbon dioxide in 2006. The othersubstances (CH 4, N 2O, HFCs, PFCs, and SF 6) arenot monitored yet because their emission is notconsidered significant.At Bunge, emissions that impact the ozone layerare primarily related to the use of CFCs as acoolant in air-conditioning equipment. The BungeFertilizantes unit in Rio Grande, Rio Grande doSul, has a plan to gradually eliminate CFC (R22)with the elimination of 100 percent of the gasby December 31, 2010. In 2007, the companyintends to prepare similar plans for other units.The Cubatão and Uberaba units, as well as BungeAlimentos, do not use substances that affect theozone layer.The most significant atmospheric emissions fromBunge Fertilizantes are SOx, NOx, particulatematter, and fluorides. The Araxá, Cubatão, andRio Grande units monitor the emission of thesesubstances.Bunge Alimentos monitors, according to thelegislation applicable to each of its plants,particulate materials, NOx, and/or SOx emissions.At the Fertimport Terminal there are emissionsof particulate materials from the raw materialsmoved (fertilizers and sulphur). A control systemusing a stack will be implemented at the site inJanuary 2007 to monitor those emissions.SustainablePorcine FarmingIn 2006, EcoInvest Carbon, a company in whichBunge has majority ownership, began a programto install biodigestors in pig farms in Brazil. Thisequipment helps reduce the emission of greenhousegases and allows them instead to be usedin a renewable manner. Waste from pig farms emitsatmospheric pollutants, including methane, whichis 21 times more harmful to the environment thancarbon dioxide.Biodigestors are large covers made of a PVC membranethat encompass the area where animal wasteis collected. They aid the decomposition of wasteand capture the methane gas it emits, which canthen be burned to generate energy that the landownercan utilize. These projects qualify as CleanDevelopment Mechanisms (CDMs) as defined bythe Kyoto Protocol. EcoInvest registers them toreceive carbon credits that can be traded.Ecoinvest Carbon provides technical consultingand funding for these and other initiatives. Ithas already installed 27 biodigestors in a 10-yearcommodity agreement.Emissions, Effluents,and WasteUnitCO2 emission in 2006(Tons)Cubatão 22,196Ponta Grossa 2,392Araxá 12,578Cajati 78,695Bunge Fertlizantes (TOTAL) 115,861Bunge Alimentos (TOTAL) 47,732note: the other units in Bunge Fertilizantes did notconduct monitoring.Parameters MonitoredAraxá, Cubatão and Rio GrandeEmission (t/year)NOx 23,784SOx 151,540.13Particulate matter 146,800.50Fluorides 10,603.65Total 332,72849

ResiduesBunge’s diverse activities and operationsgenerate a variety of solid waste products. BungeFertilizantes is the largest producer, and the wastewith the largest volume in the two mining units(Araxá and Cajati) is mining burden (class II B).In 2005, 16,800,000 tons of this material wereproduced, compared to 17,023,937 tons in2006. The material is placed in burden piles ordeposits, for which actions from the respectiverehabilitation plans for the previously mentioneddegraded areas were taken.The Bunge Fertilizantes Cajati, Araxá,Cubatão, Candeias, Rio Grande, Uberaba, andRondonópolis units produced, in 2006, inaddition to mining burden, approximately2,860 tons of class I waste; 990,500 tons ofclass II A waste; and 8,664,000 tons of class IIB waste, according to the Associação Brasileirade Normas Técnicas (ABNT – Brazilian TechnicalStandards Association NBR 10.004) classification.The Cubatão, Rio Grande and Araxá units haveselective collection in place – the others are in theinstallation phase.Bunge Alimentos’s operations produced159,755.285 tons of solid waste, divided intothe following groups: 741.84 tons of class I;42,774.56 tons of class II A; and 116,238.87tons of class II B. In 2006, Fertimport produced18 tons of class II-B waste, which was sent to alandfill, in addition to 5.5 tons of class I waste,of which 2.5 tons were incinerated, and theremainder sent for biological treatment.Bunge follows the standards and laws applicablein each case. The disposal methods used mostoften are: landfills, industrial landfills, recycling,reutilization, treatment, return to supplier, coprocessing,incineration, and compost.Fertilizer’s big bag package recyclingIn 2006, Bunge together with a manufacturer of plastic products initiated an effort to collect and recyclethe big bag packages used to deliver fertilizer to customers. This partner uses the material collected as rawmaterial and sometimes records idle production time for lack of material.All parties benefit from the systematic implementation of the partnership: Bunge Fertilizantes, who will disposeof the material properly, the partner company, who will make its production feasible, and the customer,who will no longer need to stock these materials.Trading Trash for BooksCreated by Estúdio Criação, coordinated by the Instituto Evoluir, and sponsored by Bunge Alimentos inGaspar, the Troque Lixo por Livro project is in its first year. This program, which allows students andteachers to trade recylcable waste for books and educational materials, is without precedent in Brazil.Its objective is to promote environmental awareness and encourage recycling.Bunge donates recyclable products from its plant to the project, and sales of theses materials funds theproduction of educational books and CDs distributed in schools. Students may exchange two poundsof recyclable trash from their homes for a book. The material collected by the children is sold and partof the proceeds go to their school.The project’s first phase involves students and teachers from the 1 st to the 4 th grade. Children mayexchange recyclable waste for 13 different educational books and a CD. Teachers can exchange theirrecycling for a new instructional book. Two exchange programs were run in Gaspar in 2006, with a totalof 16 schools and 2,700 children participating, and 12,500 pounds of recyclable waste collected.50

ENVIRONMENTAL RESPONSIBILITYConservation Project, Cubatão – SPEffluentsAt Bunge Fertilizantes, approximately53,300,000 m 3 of effluents were generatedby Araxá (MG), Candeias (BA), Cubatão (SP),Uberaba (MG), Rio Grande (RS), and Cajati (SP)units. Further information about waste volumes,effluent destinations, and treatment methods areprovided in the chart that follows.Currently, at the Candeias (BA) unit, the effluentsproduced (sewage) are treated in septic tanks.However, due to the low efficiency of this system,a treatment system consisting of an anaerobicup-flow digester preceded by a solid retentionbox and sandbox followed by a wetland with apercolation bed covered with vegetation, is beinginstalled. After being treated in this manner, theeffluent will flow into a creek at the northern sideof the unit.At Bunge Alimentos, 10 out of its 11 units haveeffluent treatment systems, and the Rio Grande (RS)and Passo Fundo (RS) were at the final stages offinishing their station plants in 2006. The type oftreatment varies between physical-chemical (for unitsthat refine oils) and/or biological (other units). Fiveout of the 11 units measure the volume of effluentsdiscarded, totaling 1,084,172 m 3 of effluentsdiscarded in 2006. The other units will install flowmeasuring systems from 2007 onwards. Effluentsare discarded into rivers and sewage systems, and arereused in irrigation processes, always following thefederal, state, and local egislation.EFFLUENTS TREATMENTUnitDiscarded volume(m 3 /year)Final destinationTreatment methodCandeias 8,982 Sewage system Septic tanksCubatão 40353 Mogi RiverSewer: Septic tank and anaerobic filterEffluent: No treatment availableFertilizantesUberaba 65313Rio Grande 25,500Rainwater drain (20%)Sewage system (50%)Soil infiltration (10%)Hydro body (Saco daMangueira)Septic tanks; Effluents Treatment Plant(to be completed by April 2007)Effluents Treatment PlantAraxá 19,744,080 Dam and recirculating Solid decantingCajati 33,419,400 Jacupiranguinha RiverNeutralization with limestone mud andsolid separation/decanting51

Environmental and Leisure Center, Gaspar – SCFigueira Branca Nature Reserve, Gaspar – SCAn effluent treatment plant is under finalconstruction stages at the Rio Grande (RS)unit. The Passo Fundo (RS) unit is installing asystem to treat activated sludge to supplementthe current physical-chemical treatment andimprove the biological system. In 2006, onlyone significant incident with chemicals, oils, andfuels happened at Bunge companies. In the Cajatimunicipality (Bunge Fertilizantes), a collisioninvolving a truck carrying sulphuric acid caused25,940 liters of the product to spill into theJacupiranguinha river. Of this total, 4,800 literswere recovered. This accident resulted in theinterruption of water supply to Cajati for a fewhours and the death of fish some miles away. Thefreight company and the acid buyer are beingcharged for environmental crime.Products and ServicesBunge believes that agriculture should evolveand expand in Brazil in a responsible andsustainable manner. Bunge recognizes that it mustplay an active role together with other leadingcompanies in the agribusiness industry. To helpensure sustainable development, Bunge includesenvironmental considerations in its strategicplanning.The companies are committed to minimizing theenvironmental impacts of agricultural expansionthrough proper planning and zoning of soilusage, identifying valuable biodiverse regions andrespecting important natural areas. In additionto the technical support provided to farmersto increase the productivity of current areas,it develops projects and initiatives that fosterenvironmental responsibility and sustainableagricultural development.In terms of environmental impact, consumablesplay an important role, with a significant impactcoming from package disposal (margarine, oils,and flour) and the disposal of fat waste afterconsumer use. Bunge Alimentos, aware of itsresponsibility, manages and supports projectsthat educate consumers about the importance ofrecycling. Another significant source of impactis transportation, especially trucks that emitpolluting gases from fossil fuel combustion.The industrial processes employed by Bunge togenerate its products represent a potential source ofsignificant environmental impact, especially fromthe use of natural resources (water consumption,energy, and waste generation). It must be notedthat Bunge takes preventive measures to minimizethese factors, adopting concrete initiatives towardssustainable development.The use of fertilizers can also cause anenvironmental impact, such as possible soiland water contamination from excessive andimproper use of those substances, in additionto soil requirements. Bunge stimulates precisionfarming – an initiative to optimize the use offertilizers – through its centers for information52

ENVIRONMENTAL RESPONSIBILITYConservation Project, Cubatão – SPPartnership with Universidade Regional de Blumenau, Gaspar – SCon the topic, using proper tools for bettermanagement of agricultural inputs. A largespecialized team provides technical assistanceand education on the use of chemical fertilizers,minimizing possible negative impacts.Bunge helps growers adopt no-till drilling. Theseno tillage techniques reduce erosion, increasecarbon sequestering, and result in a significantdecrease in oil consumption, while promoting aproliferation of organisms living in the soil.Environmental investments and costsPrevention / Management (R$) Treatment / Remediation (R$) TOTAL (R$)Alimentos 9,756,000.00 4,375,000.00 14,131,000.00Fertilizantes 4,656,000.00 10,941,000.00 15,597,000.00Fertimport 0 780,000.00 780,000.00TOTAL 14,412,000,00 16,096,000,00 30,508,000,00Let us work to take care of the environmentThis is the name of a project through a partnershipbetween Bunge Alimentos and Ação Triângulothat collects vegetable oil used in fryingby dwellers of condominiums. The Ação Triângulois an OSCIP (Organização de SociedadeCivil de Interesse Público, or Public Interest CivilOrganization) that goes door-to-door educatingpeople on the importance of preserving the environment.Agents teach people how to separateand recycle waste, including oil used for frying– instead of pouring it down the drain. The goalof the partnership between Bunge and the InstitutoTriângulo is to reach 270 condominiums inone year, the equivalent of approximately 22,000families. Other instructions provided by environmentalagents include not depositing batteriesin normal trash cans and encouraging people todonate used clothes.53

Colheita de arroz irrigado em Jaguarão. Rio Grande – RSResponsible FarmingResponsible Farming is a large project, with practical and conceptual guidelines, involving other programs inBunge to implement best social and environmental practices among growers. It determines that only thosegrowers who comply strictly with environmental and social legislation can supply grains to Bunge, and stipulatesthe company’s commitment to not buy soybeans planted in newly deforested areas inside the Amazonbiome, during the soybean moratorium. It includes, for example, the Cerrado Rescue, Good Practices Dissemination,Sigas and Property Management, and Precision Farming projects. This last project, as the name implies,is responsible for introducing precision farming in Brazil, which is a technique brought from the UnitedStates by Bunge in 1997, and currently applied in approximately 400,000 hectares of land in the country.Precision farming is a method in which the technician collects soil samples from several places in theproperty to verify the different soil nutrient needs. The material is analyzed in a lab, which determines thetype and amount of nutrients that each specific place needs. This allows the soil to be used in a rationalizedmanner, offering more effective protection to the environment and improving productivity, typically inthe range of 5 to 8 percent.Bunge was recognized by the Harvard University Agribusiness Seminar Conference, in Boston (USA) for thesupport the company provides to growers and its work on environmental preservation in Brazil and was highlightedas an example of corporate responsibility from the social and environmental perspective. Coordinatorsfrom Embrapa (Empresa Brasileira de Pesquisa Agropecuária – Brazilian Agricultural Research Company), agovernment agency with which Bunge develops partnerships and projects, attended the event.54

ENVIRONMENTAL RESPONSIBILITYConformanceIn 2006, Bunge Fertilizantes received two warningsand three warrants from environmental agencieswith fines totaling R$6,965 for nonconformancewith environmental regulations. The cause ofthose events, however, have been or are beingresolved. Two Conduct Adjustment Terms havebeen signed: one with the Public ProsecutionsService to monitor environmental damage causedto a water course, and the other with the FundaçãoEstadual do Meio Ambiente (FEAM – the StateEnvironment Foundation) as a result of regulationsfor environmental licensing of a Bunge FertilizantesAraxá (MG) unit.In 2006, Bunge Alimentos’ logistics operationsreceived a fine totaling approximately R$20,000.00for non-conformity with environmental licensingin port areas in the State of Bahia.SuppliersBunge Alimentos’ purchasing agreements withnew grain suppliers and suppliers in generalinclude clauses that address issues relatedto compliance with Brazilian environmentaland labor laws. In those agreements, it isexpressed that, if the supplier is penalized fornoncompliance with those laws, the agreementcan be terminated and the supplier excluded fromthe Bunge’s list of suppliers.Bunge Fertilizantes has been implementing, inall of its units, specific procedures to assess itssuppliers, based on environmental managementand operating safety, as well as on compliancewith applicable laws. These assessments arealready being carried out at the Araxá (MG) andCajati (SP) units.55

Bunge Sustainability Report – 2007 edition56

SOCIAL RESPONSIBILITYthe value ofhumanc a pi ta lFor Bunge, human and social development are only possible withthe unconditional involvement, integration, and commitment ofall interested partiesBunge believes that social responsibility should beintegral part of the business of any organization.It also believes that human capital is its main tooltowards sustainability, and that its relationshipwith its employees must be always based on trustand transparency. For this reason, the companypromotes the integration of all its agents seekinghuman and social development, so that results areshared and meet the expectations and interests ofall stakeholders.The consolidation of partnerships with society,governments, and suppliers makes the impactof our operations on the environment and thecommunities more and more positive. Throughforums and workshops, we promote dialogue onissues such as the expansion of agricultural bordersand conservation of biomes, with the presence offarmer, consumers, and representatives of NGOsand governments.Fundação Bunge, established more than 50 yearsago, coordinates all social responsibility actionsfor Bunge’s companies in Brazil. The actions focusprojects aimed at basic public education, such asComunidade Educativa (Educational Community)that brings together 508 volunteers and benefits7,000 children in eight states in Brazil.HUMAN RIGHTSThe Bunge companies follow Brazilian legislationwith respect to workers’ rights. They offer goodstructural conditions in the workplace (safety,hygiene, and ergonomics), compensation policies(fair and aligned with the market), and programsfocused on developing actions to improve thequality of life for our employees, their familiesand their communities.Those practices follow the company’s valuesand are formalized in the Ethics Code and theSustainability Policy, based on three pillars(Economic Performance, Social Responsibility, andEnvironmental Responsibility), ensuring equalconditions and opportunities to all employees.Bunge decided not to work with growers whohave been convicted of noncompliance withlabor laws on their properties. Bunge Alimentosand Bunge Fertilizantes signed, in 2006, theNational Pact for Slave Work Eradication of theEthos Institute. The objective of this initiative is to“dignify and modernize work relationships in theproduction chains of industries in the ‘EmployeeFile decree 540’ that maintained workers inslave-like conditions.” More information can befound at www.ethos.org.br.57

AlimentosThe agreements that Bunge Alimentos has with itssuppliers contain the following clauses:I) THE CONTRACTOR undertakes to operatein conformity with labor, social security, andsocial laws, as well as other legal dispositionsconcerning the protection of human rights,abstaining, especially, from imposing insulting orsub-human working conditions on its employees,restricting their constitutional right to freedom, orthreatening them or physically abusing them forany reason, inclusive of debts of any nature.II) THE CONTRACTOR represents that it is awarethat the confirmation of the use of child labor inits operations in violation of the aforementionedlaws gives the CONTRACTING PARTY the right toterminate this agreement without incurring inany penalties.FertilizantesBunge Fertilizantes complies with the legislationwith respect to agreements entered into withsuppliers or contractors.Suppliers – The raw materials used in theproduction process, by its nature, originates fromlarge conglomerates and domestic and foreignchemical complexes, whose production involveshighly specialized labor, and equipment of hightechnological complexity, where it is not possibleto employ child or slave labor. Those companiesprovide information about the social andenvironmental responsibility of their practices intheir annual reporting.Contractors – The company monitors compliancewith legislation, negotiates, and imposes demandsin its agreements with respect to proper workingconditions, compensation compatible with themarket, and safety aspects, among others. Atindustrial units, outsourced employees have theirmeals at the company cafeteria, participate in safetytraining, and are involved in various employeeinitiatives.The use of child, forced, or slave labor is alsorejected by the Bunge companies. Employees arehired following legal, ethical, and moral criteria.There are time control systems in place that recordthe number of hours at work for payment.Additionally, the industrial units utilize largeequipment, some of complex operation. AtBunge Fertilizantes, for example, the extraction,phosphate ore, and fertilizer manufacturingprocess involves personnel trained in most ofits phases, which configures an operation thatis incompatible with the performance of child,forced, or slave labor.Only Trainee Minors between 14 and 18 yearsof age are hired, according to Law 10097/2000.The activities of those minors are monitored bythe company’s Human Resources areas and byrelevant institutions. During the minor’s time atthe company, the entities exchange informationon their behavior and performance. Currently,Bunge Alimentos has 12 minor trainees, BungeFertilizantes has 23, and Fertimport has 13. In2006, there is no record of legal actions concerningviolation of human rights or any cases of violationof indigenous peoples’ rights.There have been no documented cases ofdiscrimination based on race, color, gender,religion, political standing, nationality, or of anykind at any Bunge company. In order to ensurethe rights and the integrity of its employees,Bunge Fertilizantes and Fertimport have socialservices available to their employees. SocialEnvironmental monitoring site, Araxá – MGFertimportThere is no formal policy, but agreements areprepared based on Bunge’s values and inconformance with Brazilian legal requirements.There is no record of complaints that it might beviolating existing agreements.58

SOCIAL RESPONSIBILITYServices work to identify conflict situations inthe workplace, such as disagreements betweenemployees and bosses, improper treatment, anddiscrimination, and intervene to provide supportand guidance for resolving problems ethicallyand preserving the dignity of those involvedto strengthen relationships and contribute to aharmonious work environment.Fair treatment and integrityBunge promotes equal opportunity practices,based on the Ethics Code distributed to allemployees, which stipulates, in the Fair Treatmentand Integrity section, that “every employee,manager, and director shall treat customers,suppliers, competitors, and fellow Bungeemployees fairly. Employees, directors, andmanagers shall not have unfair advantages overany individual.”Bunge emphasizes the development of leadershipin its operations and provides conditions for aharmonious work environment where peopleare treated equally, their individual differencesrespected, and their skills and competenciesutilized. These competence criteria guide allhiring, transfers, and promotions.For promotion procedures, Bunge assesses,through the requesting area and HumanResources, whether the profile of the employeeto be promoted is compatible with the profileof the desired position. Additionally, it analyzesperformance appraisals and determines if theemployee’s education and experience meets theposition’s requirements, regardless of gender,race, or level of employment.The human resources department is responsiblefor managing the internal and external recruitingand selection process, from the analysis andannouncement of the opportunity to closingthe positions with the requesting areas. Therecruiting and selection policy favors labor fromcommunities surrounding the industrial units.In locations where there is lack of professionalsthat meet the required competencies, Bungeinvests in educating and training people throughpartnerships with Sesi, Senai, and other technicaleducation entities.Due to the dispersion of Bunge in different regionsin the country, our workforce consists mainly ofAfro-Brazilians in some locations and Caucasiansand Asians in others. The composition of employeesat these locations reflects the demography ofthe individual regions themselves. All employeerecruiting and selection is based on matchingthe candidate’s profile to the position’s profile forhiring, excluding any discriminatory practices.Bunge companies in Brazil follow labor lawsregarding people with special needs, and they arecurrently restructuring their human resourcespolicy to adapt their hiring processes.Labor use analysisAlimentos Fertilizantes Fertimport Fundaçãomen women men women men women men womenDirectors 13 1 12 1 7 - 1 -Managers 271 24 38 6 26 2 - -Supervisors 451 43 482 27 - - - 1Technicians 187 28 89 17 8 1 - 2Administrative 1,123 431 309 213 91 88 - 2Operations 2,534 171 1,865 70 127 - 1 -Coordinators - - - - - - - 4Total 4,579 698 2,795 334 259 91 2 959

Organizational Climate SurveyAnother important tool for evaluating ourrelationship with employees is the confidentialOrganizational Climate Survey, which givesemployees the opportunity to express theirthoughts, give their opinions on whatimprovements can be made, and report any typeof concerns or dissatisfaction.After the results are charted, indicators are analyzedto identify points for improvement and actionsplans are defined based on these points. The resultsof the survey and the actions implemented from itsresults are shared with employees.Internal ControlsBunge’s internal controls have been certified forthree years, through an audit of the Sarbanes-OxleyLaw, which has contributed to the disseminationof corporate controls throughout the organization,extending the concept of legal compliance foreffective corporate governance.Bunge companies have communications channelsaccessible to all employees, such as the intranet,which can be accessed freely by all employees, andthe Fale Conosco, which provides a channel forcomments, suggestions and concerns that is opento both external and internal audiences. There isalso a channel for anonymous complaints regardingpotential fraud, created to comply with Article301 of the Sarbanes-Oxley Law, which requiresthat the Audit Committee of the Board of Directorsestablishes procedures to:1. Receive, store, and process complaints relatedto accounting, internal accounting controls, oraudit matters;2. Receive confidential and anonymoussubmissions from employees.This system can be accessed from the website(www.bunge.com – Contact Us), and allows bothemployees and third parties to file concerns andcomplaints confidentially and anonymity.TURNOVERAlimentos Fertilizantes Fertimport FundaçãoTotal turnover 31% 10% 23% 18%Number of hires in 2006 549 172 47 1Number of employees who left the companyin 2006 (voluntarily, dismissal, retirement, ordeath)1647 315 82 2EMPLOYEES ACCORDING TO NATIONALITY AND JOBS STATUSAlimentos Fertilizantes Fertimport FundaçãoBase Date: 12/31/2005and 20062006 2005 2006 2005 2006 2005 2006 2005Region or country (own)Brazilian employees 5,270 5,956 3,129 3,460 350 385 11 13Foreign employees 7 4 - - - 3 - -Type of employeeBunge employees 5,277 5,960 3,129 3,460 350 388 11 13Contractors 2,387 1,916 3,540 3,751 165 26 3 2Total employees 7,664 7,876 6,669 7,211 515 414 14 1560

SOCIAL RESPONSIBILITYLABOR PRACTICESIn 2006 Bunge, in Brazil, had 14,862 employees,considering direct jobs and third parties ones.Employees are free to join trade unions – all arerepresented by labor unions through collectiveagreements or collective labor agreements.Bunge allows access and operations of thoseentities inside the company, provides informationto them, and has representatives who meetregularly with members of the unions to listento suggestions and negotiate claims, according tothe legislation, article eight and its paragraphs.BenefitsBunge offers several benefits to its employees,some of them extensible to their dependentssuch as health, dental, and pharmacyassistance, group life insurance, and toys foremployee’s children up to 12 years of age forChristmas time.Among the benefits provided exclusively toemployees are pension plans, meal tickets,transportation, credit cooperative, Christmasbaskets, an education incentive program, and adultreading classes at the company.Bunge FertilizantesBEM-ESTAR BUNGE (BUNGE WELL-BEING PROGRAM)It is based on pillars such as self-knowledge,health, relationships, leisure and culture, safety,and citizenship. The actions in the program areplanned based on employees’ health and lifestyleprofile, determined through self-assessments andperiodic exams (questionnaires and laboratory,nutritional, postural, and medical evaluations).The Human Resources department coordinatesthe program with a multidisciplinary team– social services, doctors, nurses, nutritionists,physical therapists, physical education specialists– to develop these activities. It develops strongactions aimed at nutrition and fighting sedentarySoybean meal packaging, Uruçuí – PI61

ehavior. It develops specific actions aimed atindividuals affected by diabetes, hypertension,and obesity to create awareness and help themtake an active role in treating their conditions.Through actions such as cultural seminars,occupational exercises, and specific actionson specially designated dates, the program iscurrently implemented at the Cenesp, Cubatão,Rio Grande, Canoas, Araxá, and Cajati units. In2006, initial actions were executed to extendthe program to the Uberaba and Candeias units.It reaches 3,000 employees and their families,since many proposals are extended to spousesand children. The Bunge Well-Being programalso supports projects targeting specific publics:The Grupo de Gestantes (Expecting MothersGroup), which works with female employeesand employee’s wives during pregnancy, had36 pregnant women from the Araxá, Cajati, andRio Grande units participating in 2006; and theProjeto Travessia (Project Passage), for teenagechildren of employees had 42 teenagers from theAraxá, Cubatão, Cajati units participating.Main results:- More knowledge and awareness of employees ofinformation on personal health data: Glucose index,triglycerides, cholesterol, blood pressure.- Significant reduction of obesity, cholesterol,triglycerides, glucose, and blood pressure (thoseindices are measured annually, in the entireemployee population).- More interest in personal follow-up, informationreceived through seminars, participation inDDIs and practical activities, as shown by thelarge adherence to the different proposals in theprogram.- Change of health-related behaviors. Severalemployees started to bring fruit to eat during mealbreaks and report incorporating exercises into theirdaily routine.Bunge AlimentosThe Bunge Vida (Bunge Life) program developsactions to promote, in each individual, values andattitudes that will make him or her more aware,motivated, and responsible for his or her own qualityof life and that of their families and the communitieswhere they live. The objective is to create conditionsfor better physical, mental, and social well-beingfor all individuals directly or indirectly involvedwith Bunge Alimentos. The Programs has a strongpresence in preventive and educational activities, andis divided into three modules:HEALTHY LIVING – Proposes preventive action,knowledge transfer, and global and regionalexperiences to strengthen more healthy habits ofemployees, their families and partners, and thecommunity. Some actions of this module include:Occupational exercises, blood donation, and fluvaccination.COMMUNITY LIVING – Creates a positive andtransforming link with communities, promotingcitizenship, social responsibility, and understandingof regional diversity, habits, and culture. Someactions of this module include: the Second HalfProject, fitness for seniors, the shelter campaign,students’ visit to the company, book day.FAMILY LIVING – Strengthens the relationshipbetween the company and employees’ familiesthrough actions to improve the quality of life inareas such as family education, home economics,and basic safety, as well as activities that fosterunderstanding and citizenship. Actions of thismodule: Women’s Day, Easter at Bunge, Fun Day,Holidays at Bunge, Mothers Day, Fathers Day.In addition to the modules, the program alsooffers, every year, the Bunge Life Week. Theactivities are diversified: Seminars, theater,contests, debates, learning activities. Usually,the units conduct this event together with theSipat (Semana Interna de Prevenção de Acidentesno Trabalho – Internal Occupational AccidentPrevention Week), when seminars and informationare provided on topics such as AIDS and othersexually transmitted diseases (STDs).FertimportFertimport develops annual seminar programs,addressing five distinct topics, all related toworkers’ health and safety, during the Sipat. Topicssuch as AIDS and STDs, quality of life, nutrition,anti-stress massage, sexuality, and ergonomics atwork are addressed. The seminars are aimed atemployees and extend to third parties.Changes in OperationsIn order to increase competitiveness, give moresustainability to its operations, and reduce costs,the company had to reduce its workforce in2006, with dismissals at levels of employment,from directors to factory workers. Conductedwith transparency and respect for the affectedindividuals, this process was part of the company’soperational and strategic restructuring designedto improve efficiency and productivity. Someconsiderations on the process:62

SOCIAL RESPONSIBILITYBunge AlimentosBunge Alimentos structured actions fordeactivating some units promoting synergybetween the different areas involved andminimizing as much as possible the impacton its employees and the communities wherethey live. The process was conducted withtransparency among all stakeholders involved,especially the community, unions, and employees,taking into account the practice of the valuesdefined by the company.Company management met and unified thelanguage for internal communications in order toinform every one of the necessary justificationsand information. The company gave support toemployees dismissed in restructuring and unitclosures, granting extended medical assistanceperiods, preparing and distributing their resumésin the region, providing professional trainingcourses, and offering guidance on retirementprocesses and opening their own businesses.Bunge FertilizantesAs a result of changes in its structure to adaptitself to the market, the company had to dismissemployees in some units. Human Resourcesdeveloped a strategy to align the entire process,involving communication with affected employeesand those who remained with the company.Bunge Fertilizantes provided, at its discretion,an extension of medical assistance, bonuses, jobplacement support, and guidance on retirementand self-employment processes.FertimportAligned with Bunge’s restructuring process andstrategy, Fertimport, considering the corporatevalues, reduced its staff in a transparent manner,involving managers, affected employees, and thosewho remained with the company in meetingsoriented by Bunge’s communication plan. Throughthe Human Resources area, the company developedstrategies to extend the benefits, such as medicalassistance to dismissed employees, assisting themin retirement procedures and in preparing theirresumes for the job market.Health and SafetyBunge companies have an Internal Commissionfor Accident Prevention (CIPA – ComissãoInterna de Prevenção de Acidentes), consisting ofrepresentatives of the employer and employees,whose objective is to prevent work-relatedaccidents and illnesses, making the workpermanently compatible with the preservation ofworkers’ life and health.Accidents (with or without sick leave) arecommunicated internally, formalized throughthe CAT (Comunicação de Acidente do TrabalhoOccupation excercises in Rondonópolis – MT63

– Work-related Accident Communication), andsent to Social Security. Internal safety committeesin the plants analyze each case, prepare theaccident investigation report, and then prepareaction plans to avoid repeat occurrences.Bunge AlimentosThe Safety Committee is an independent groupwith the highest hierarchy in safety management,either at the Company’s unit or in the regionwhere it operates. The committee conductsa monthly internal cross-inspection, with apredefined schedule for the entire year, in whichall areas (from the cafeteria to the mechanic shop,and through production areas) are inspected andanalyzed based on Bunge’s safety standards. Thisidentifies outstanding issues, which are classifiedinto three criteria according to the problem’sseverity, urgency, and trend. The committee isalso responsible for receiving employee safetyconformity requests – the so-called Communiqués– that are treated the same way as the itemsidentified during formal inspections.Bunge FertilizantesThe Occupational Safety and Health ManagementSystem (Occupational Safety and Health MasterPlan) establishes a set of guidelines to promotethe physical and mental well-being of ouremployees and service providers by identifyingand managing risks and continuously improvingthe work environment, ensuring the use ofOccupational Safety and Health practices. Thesystem implementation process started in October2004, and should be completed in four years. TheOccupational Safety and Health Master Plan is one ofthe pillars of Bunge Fertilizantes’ Occupational Safetyand Health Master Policy. An internal committeein the plants implements the Occupational Safetyand Health management system, where eachspecific topic is managed by a representative of thecorresponding area. The local Occupational Safetyand Health Area and duly qualified professionalsor entities conduct safety-training sessions. In2006, several training sessions were conducted, ondifferent topics related to Occupational Safety, withthe objective of creating awareness and developingand training professionals on behavioral, technical,and operational aspects. There were 32,773 hours oftraining, with 10,735 employees trained.FertimportSince it is a port activity, the terminal has a PortLabor Accident Prevention Commission (Comissãode Prevenção de Acidentes do Trabalho Portuário– CPATP), as stipulated by Regulatory Guideline29. The site adopts the DDS (Diálogo Diário deSegurança – Daily Safety Dialogue), a practiceperformed 10 minutes before the start of each shift.Training and DevelopmentBunge’s Training and Development Policy is based onproviding employees with the opportunity to developtheir competences, knowledge, skills, and attitudes.There are subsidies for language courses, elementaryand middle school education, technical courses,graduation, post-graduation, and MBA programs.Additionally, there are several internal trainingprograms for specific audiences, as described below.Safety trainning in fertilizer plant.64

SOCIAL RESPONSIBILITYExecutive Development (XDP and EDP)This program is aimed at the continuousdevelopment of executives to improvemanagement and technical competencies andalign them to the needs of each business andto Bunge’s strategies. It is a worldwide trainingprogram developed for the company’s executivesin partnership with Washington University (St.Louis, USA). In 2006, the president, four BungeAlimentos directors, and seven Bunge Fertilizantesdirectors attended.Leadership Development Program (LDP)Developed for managers, it contains the followingmodules: Strategy, Process Management, andPeople Management. In 2006, 66 professionalsfrom the companies received this training.Management Development Program (MDP)A Training Program aimed at section headsand coordinators, with the following modules:Human Resources, Leadership Concepts andTechniques, Leadership Practices and Attributes,and Core Skills. In 2006, 241 Bunge professionalsreceived this training.Trainee ProgramIts objective is to develop newly graduatedyoung professionals for management or technicalpositions at the company. Selected trainees gothrough a structured development program,which lasts 12 to 18 months. In 2006, 17individuals were trained in different areas.Technical and Legal TrainingThis program provides employees with capabilitiesand qualifications and fosters development andimprovement of technical, methodological,behavioral, and practical aspects of competencies,required for the position.Succession PlanningIts objective is to identify successors for keypositions in the organization and continuouslyprepare them to be capable of taking on positionswith more responsibility.Bunge AlimentosExecutive AssessmentAssessment tools that support leadershipdevelopment through a feedback and coachingfriendlyenvironment. It discusses 360º assessmentand feedback topics.FertilizantesMeyers Briggs Type Indicators (MBTI)The company adopts the MTBI methodology (JungTheory) to provide leaders with psychologicalknowledge of the members of each team. The mainobjective of this tool is to give participants theidentification, understanding, and appreciation ofdifferences between individuals, so that they canlead more effectively and know how to defineself-development paths.Operational FlexibilityDeveloped for operations employees, its objectiveis to improve professional qualifications andLABOR ACCIDENTSAlimentos Fertilizantes Fertimport FundaçãoNumber of accidentswith sick leaveNumber of accidentswithout sick leaveNumber of accidentswith death2006 2005 2006 2005 2006 2005 2006 200527 81 77 93 10 5 - -104 179 256 290 2 - - -4 1 1 1 - - - -65

technical, methodological, and behavioral skills,providing a full picture of the process.Commercial MeetingAn annual meeting to adapt and update thecommercial team to the demands of the market, thecompany, and its products, as well as to promotethe development of technical, management,and behavioral aspects. Those meetings have animportant role in mobilizing and aligning the teamin view of strategic and operational issues.Negotiation TechniquesThis commercial team-specific training programpromotes development in negotiation strategiesand customer relationship management toimprove the skills necessary to good performancein conducting businessWork RelationsA training program developed in all units in thecompany, involving section heads, supervisors,technicians, coordinators, and Human Resourcesprofessionals. The program’s approach gives theparticipants ideas and updates on topics related towork relations in the present context, the managementmodel (considering relations, productivity, safety, andquality), and cohesion of values and attitudes, as wellas legal aspects such as code of conduct.KaizenKaizen events are used to implement the LeanSigma methodology for problem-solving andcreating a lean manufacturing culture.In 2006, more than 8,000 hours of Lean Sigmatraining were completed at Bunge Fertilizantes. AtBunge Alimentos, 76 Kaizen weeks were conductedin 2005-2006, totaling 25,000 hours of training.FertimportAs decided in a meeting of Quality Management(CDQ – Corpo Diretivo da Qualidade), all trainingscheduled for the year was suspended in order toreduce expenses in the Company. It was decidedthat only emergency training would be scheduledand conducted. However, seven managersparticipated in the Bunge Corporate TrainingProgram (LDP) in 2006.Social Responsibility CoordinatorsFundação Bunge maintains, for its voluntary groupand company coordinators, an annual educationProcessOptimizationA trend among large corporations worldwide,the Shared Services Center (CSC –Centro de Serviços Compartilhados) is aninnovative project implemented by Bungeto increase efficiency and competitivenessin the companies. The service was implementedin the Controlling and Financeareas to optimize, standardize, and reducecosts of administrative processes. Itsapplication combines and incorporatesthe best advantages of centralized anddecentralized operations. That is, it allowsthe business to maintain control over decision-making,react quickly to customers’needs, acquire consistent standards andcontrols, and achieve economies of scale.66

SOCIAL RESPONSIBILITYprogram that emphasizes social services and topicsrelated to education, the focus of our social work.In 2006, two education meetings were conducted:March 2006Fundação Bunge– twelve coordinators, totaling 72 hoursBunge Alimentos– fourteen coordinators, totaling 162 hoursBunge Fertilizantes– thirteen coordinators, totaling 216 hoursFertimport– four coordinators, totaling 72 hoursAugust 2006Fundação Bunge– three coordinators, totaling 51 hoursBunge Alimentos– 14 coordinators, totaling 238 hoursBunge Fertilizantes– 13 coordinators, totaling 221 hoursFertimport– three coordinators, totaling 51 hoursIn 2006, 1,083 hours were invested in employeeswho work as volunteer coordinators at FundaçãoBunge and Bunge units that administer theComunidade Educativa (Educational Community)program. Those courses are conducted byconsultants in the Corporate Social Responsibility,Education, and project areas, addressing topicssuch as: Third Sector, Partnership, CorporateVolunteerism, Juvenile Development, PublicSchool Scenario, Project Planning andDevelopment, Analysis of Diagnostics, andPersonal and Collective History Construction,among others.According to the feedback from the company’sHuman Resources areas, it is possible to confirmthat the education provided has been contributingto the professional and personal developmentof volunteer employees. On the professionalside, skills such as leadership, planning andcommunication, flexibility, time management,integration with professionals from differentareas, multi-functionality, and adoption ofBunge’s values are developed. On the personalside, employees report better understandingof the communities where they live, anddevelopment of creativity and empathy, amongother capacities.RESPONSIBILITYFOR THE PRODUCTConsumer Health and SafetyBunge AlimentosThere is an integrated Quality, Safety, and Environmentpolicy, concerned with food safety, as described inthe guideline “Ensure the quality and competitivenessof our products and services through control andreliability of our processes.” Products and processesare monitored during the receiving, processing,and finished products phases. Preventive measuresare taken to ensure the product is free of elementsthat may impair food quality and safety. Thewww.bungecomvoce.com.br site has tips on foodconservation at home. In order to validate thisintegrated policy, Bunge Alimentos maintains anintegrated management system including ISO 9001,ISO 14001, HACCP Feed and Food certifications.Bunge FertilizantesThere is no internal policy or requirement fromthe Agriculture and Supply Ministry on consumerhealth and safety in relation to fertilizers. However,product packages contain the following instructionson precautions in terms of human health: Improperfor human consumption; avoid inhalation andcontact with the eyes and skin; keep away fromchildren and animals; seek medical help ifingested; dosage and application according to theinstructions of a qualified professional.Products and ServicesBunge AlimentosBunge Alimentos has a Call Center System in placesince 1988. On December 2006, this structurewas outsourced to a company specializing in thistype of service. The call center meets demands thatcome mostly from consumers (90 percent), ofwhich 8 percent are for logging complaints and92 percent request prescriptions, seek explanationson products, and offer suggestions, criticism,and praise. Currently, contact can be made bytelephone, e-mail, letter, and/or fax.The main internal contacts of this area are: Plants,Marketing, Innovation and Technology (R&D),67

Call center contactsBunge Alimentos – 2006Call center contactsBunge Fertilizantes – 2006E-mail: 17.100E-mail: 18.497Fax: 40Telephone: 6.000Telephone: 27.189Letter: 2.200 Total: 46.529Total: 24.497and Productivity, Quality, Safety, and Environment(PQSE). Customer service conducts surveys withconsumers three days after the call was received.Additionally, a survey is conducted througha consulting firm to assess different aspects,including: customer service, satisfaction with theproduct, logistics and sales services, among others.Bunge FertilizantesBunge Fertilizantes has a Call Center System inplace since 2003. An internal system assesses, ona monthly basis, customer satisfaction throughdirect outreach. The sample is simple andrandomized. It works with customer satisfactionsurveys (post-purchase), new products,repurchase surveys, birthdays, and logisticsservices. The Call Center also handles inboundcalls. The next step will be to convert this systeminto a strategic information tool to improve thecompany’s services.This service serves mostly consumers, of which90 percent are farmers. Of this number, 37percent request commercial contacts; 15 percentlog complaints, requests, and explanations aboutproducts; 12 percent make technical requests;11 percent query about products; 9 percent offersuggestions and praise; and 6 percent requesttechnical materials and giveaway gifts.Currently, contact can be made by telephoneand e-mail.The Call Center is preparing an action plan toregain customers that had some kind of problemwith Bunge Fertilizantes’s products and services.It will also conduct pre-sales surveys andagronomic assistance services (during sowing andproduction seasons).FertimportAccording to requirement 8.2.1 (CustomerSatisfaction of NBR ISO 9001:2000), thecompany defined an internal system toevaluate customer satisfaction. It is the AnnualSatisfaction Survey, whose methodology definesthat any items with a score under 3 in thequestionnaire must be investigated. The causes ofdissatisfaction must be checked and correctionsplanned through the implementation of acorrective action in the Quality ManagementSystem.Upon receiving the surveys, we thank thecustomer for his or her participation and, if thereare any items that need to be improved, we givefeedback with the actions planned to correct anynonconformities. In our latest survey, completed in2006, we had a score of 4.06 in a scale of 1 to 5.68

SOCIAL RESPONSIBILITYAdvertisingBunge follows advertising procedures and standardsstipulated in the Brazilian legislation and byregulatory agencies such as Conar (ConselhoNacional de Auto-regulamentação Publicitária– National Council for Publicity Self-Regulation).The companies always, and voluntarily, uses asan internal procedure – and seeks to employ inits publicity – people who represent ethnical,economic, and social diversity.In 2006, Bunge Alimentos had one violation onrecord. It was Representation 104/06, submittedto the Conar (Conselho Nacional de AutoregulamentaçãoPublicitária – National Councilfor Publicity Self-Regulation) by one of Bunge’scompetitors. The reason for the representationwas the Cyclus oil ad campaign. Conar, in a firstassessment, considered the representation fair,and determined that Bunge should remove thecampaign from the media, which has already beendone. The decision is still under appeal.There are also some administrative proceedings inprogress, from warrants related to the “consumerhealth and safety” and “product information andlabeling” issues. All of these, however, are still onlower court and can be appealed in administrativeand judicial courts.grade) located in the proximity of Bunge units.The program objective is that the company andthe volunteers, in partnership with public schools,discuss and propose actions to make it possible tostrengthen the students’ interest in learning and toget families more closely involved with the schools.The entire work is done considering andrecognizing the culture of the region. FundaçãoBunge invests in educating its volunteers, whoattend monthly orientation sessions on the workthat they develop at the schools, and evaluatethe results of their actions. Volunteer employeesdedicate at least two hours per week to do thework, during working hours. In 2006, thenumber of volunteer employees was smaller than2005, due to company restructuring. However,the program served, as a whole, a larger numberof schools and students, with a new regionaldistribution design.The program is present in 14 regions withineight states in Brazil (São Paulo, Rio de Janeiro,Minas Gerais, Rio Grande do Sul, Santa Catarina,Paraná, Pernambuco, and Piauí). The EducationalCommunity program involves 25 Bunge units: 12Bunge Alimentos units, eight Bunge Fertilizantesunits, and five Fertimport units.SOCIETYAll corporate actions of Bunge companies inBrazil are developed by Fundação Bunge, anon-profit organization created in 1955. Itsobjective is to involve employees from Bungecompanies and other stakeholders in discussingand resolving challenges found in communitiessurrounding the units, with education as themain focus of attention.CommunityFundação BungeAll actions coordinated by Fundação Bunge arebased on four pillars:1. VOLUNTEER ACTIONDeveloped in elementarypublic schools.COMUNIDADE EDUCATIVA(EDUCATIONAL COMMUNITY)A corporate volunteer program of Bungecompanies in Brazil that develops projects inelementary public schools (from first to fourthThe Know-How Chest Project69

PROJECT STIMULATES LEARNING IN THECLASSROOM IN RIO GRANDE DO SULIn 2006, Fundação Bunge and the Navegantes Elementary School in Rio Grande (RS) conducted the EnchantedChest learning and teaching project, whose objective is to use learning tools to make learning morefun and open up students for the exchange of experiences.In addition to the project, volunteers and the school community, in partnership with entities in the region,conducted an activity to celebrate World Health Day in 2006. Guidance on vaccination schedules and oralhygiene was given, toothbrushes were distributed, blood pressure checks were offered, and access to servicessuch as haircuts and hair massages were provided. There were also recreational and educational games, andinformation on how to make and drink chimarrão, Brazilian type of tea.230 students and 16 teachers involved20 events conducted, with2.802 people involved16 educator qualification meetings,totaling 83 hours70

SOCIAL RESPONSIBILITYresults – 2005/20062005 750 volunteeremployeesAssisted 10schools5,677studentsInvolved 244teachers2006 508 volunteeremployeesAssisted 16schools7,000studentsInvolved 320teachersNationwide Results- 52.748 people directly involved in actions andeducational meetings- 492 actions executed- 6 new projects launched- 95 partnerships established- 49 events open to the community- 638 hours invested in educating teachers andproject partners- 1.083 hours invested in educating employees whowork as volunteer coordinators- 2.440 hours dedicated to volunteer workProjects developed by ComunidadeEducativa program in 2006Environmental Education by Means of aCommunity Vegetable GardenE. E. Henrique Dumont Villares – Bairro do Jaguaré/SPEnvironment Education, with a communityvegetable garden and educational activities to makelearning more attractive, call the community’sattention to environmental issues, channelchildren’s energies into positive actions, and bringfamilies closer to the school.Results- Eight play stations built at the school- Less aggressiveness among the students at theschool- Improved school environment (more motivatedteachers and school employees)- Incorporation of the vegetable garden and theplay stations as pedagogic resources- Environment Education: Toy production shopsusing recyclable materials- Seminars and work on preservation of theenvironment- Dietary reeducation: Food reutilization workshopswith teachers, students, and members of thecommunity, a theater play on the importance offood, and the addition of vegetables from thegarden to the school mealsIncentives for ReadingE. E. Dr. Alberto Badra – Bairro Vila das Belezas/SPThree actions are developed at school:• Reading Corner: An area prepared to receivestudents in a learning environment, wherevolunteers and teachers motivate students to readby acting as storytellers• Library: Opened in 2005, supplements thereading incentive action developed by storytellers atthe Reading Corner• Teacher Training: In 2006, teachers received 22hours of training to diversify reading and writingactivitiesResults- More interest in reading from the students andimprovement in text writing.- Higher teacher self-esteem and self-confidence- Increased teacher participation in schoolmanagement- 2,670 books lent to students- 1,370 students attended storytelling activities- 8,970 visits to the library by students- Literature Festival: theater, puppets, dance,exhibitionsReading IncentivesE. E. Mary de Azevedo Carvalho – Cajati/SPVolunteers and teachers from the school developthe project, whose objective is to stimulatereading, increase students’ self-esteem, and theparticipation of the family in the school. In 2006,the reading area was opened with more than4,000 books and three multimedia computers.71

Discovering the Pleasure of Reading ProjectThe Readers of TomorrowResults- 93% of teachers report that ComunidadeEducativa contributed to the transformation of theirpedagogic activities in the classroom- Elimination of violent events at the school on thesecond semester of 2006- Expansion of the teachers’ teaching skills and tools- Intensive community participation in the actionsin the project- Participation of one teacher in the differentiatededucational projects state contest, representingthe Cajati municipality at the State EducationDepartmentSing ProjectE. E. B. Profª Angélica Souza Costa – Gaspar/SCA music and environmental education project.Students participate in activities such as flutelessons, singing groups, and construction ofmusical instruments using recyclable materials.There are also visits to cultural centers such astheaters, music schools, and folk groups.Results- 62% reduction in the number of absencescompared to 2005- 40% increase in the participation of parents inpedagogic meetings at the school- Results in the classroom: discipline, attention,focus, rhythm and coordination improvement,liveliness, and better self-esteem- Expansion of the students’ cultural universe- More interest from the local government in theschool and the districtDiscovering the Pleasure of Reading –Agro-Urban Municipal School – Ipojuca/PEE. M. Agro-Urbana – Ipojuca/PEEncourages reading through storytellers, readingworkshops, creation of reading groups, interchangebetween educators in the region, and visits to thecommunity’s libraries.Results- Creation of eight Reading Corners in classroomsand organization of the 5,000 books collection- 10% increase in the school’s literary titles- 30% of teachers structured work plans based onthe project’s guidance- 80% of teachers report that the project changedclass dynamics, generating better performance andincreasing students’ interest in reading- Government commitment: In 2006, the schoolhad its facilities and computer lab remodeledthrough actions from the State EducationDepartmentEnchanted ChestE. M. E. S. Navegantes – Rio Grande/RSA learning-pedagogic project whose objective is tomake students interested in the activities developed.Teachers and volunteers use chests containing books,props, accessories, games, painting materials, andtheater articles in the classroom.Results- 6.5% increase in attendance compared to 2005- 5.5% increase in students’ passing grades ratecompared to 200572

SOCIAL RESPONSIBILITYThe Sowing Fun ProjectDiscovering the Pleasure of Reading Project- 81% of teachers credit the project with changes intheir teaching practices and improvement in students’performance in the classroom and in the community.Know-How ChestE. M. E. F. Lurdes Cury, E. M. E. F. Maria Félix Mascarenhas eUnidade Escolar Patrício Franco – Uruçuí/PIThe project, which includes urban and ruralmunicipal and state school, educates teachers andpromotes community involvement. Teachers usechests containing articles such as costumes, toys, andbooks to teach appreciation of the local culture andraise environmental awareness. Teachers are constantlyeducated to learn new techniques to stimulate readingand improve their skills as educators.Results- Strengthened creativity and the interest indiversifying activities with the students- Enriched reading and writing classes, makingthem more dynamic and participative- Enhanced teachers’ skills- Improved the self-esteem of students and teachers- Has been a valuable tool for teaching and learningin a more dynamic manner- Increased the teachers’ efforts to make studentsenjoy readingThe Value of LifeE. E. Braz Cubas – Santos/SPThis program encompasses educational, cultural,and leisure activities that contribute to instillingethical values such as respect, collaboration, andfriendship. The activities involve theater workshops,visits to cultural centers, and the creation of anEthics Code based on the Child and AdolescentStatute (Estatuto da Criança e do Adolescente).Results- Participation of 2,480 persons in the fouractivities developed during 2006- 14 educational meetings conducted, totaling 42hours and 624 persons involved- 420 hours of volunteer work- Establishment of partnerships with the RegionalEducation Office, Municipal Education Department,Municipal Sports Department, the Peixe Arte NGORights FairA collection of learning and cultural activitiesfocusing on children’s rights, as stipulated in theChild and Adolescent Statute (Estatuto da Criança edo Adolescente).Result- Held in 10 Brazilian cities in 2006, involving 14schools and 7,572 students2. TEACHER TRAININGDeveloped with educators from state andmunicipal public schools to promote elementaryeducation (first to fourth grade).ReciCriar – PEDAGOGY OF THE POSSIBLEFree pedagogic practice seminars and workshopsthat promote information exchange andcontribute to educate teachers in the public schoolsystem. In four years, 9,700 teachers were trained.73

The ReciCriar ProjectThe objective of the Project is to increaseteachers’ self-esteem, emphasize the importanceof records in developing pedagogic projects,stimulate the teacher to be an active leader inthe educational process, establish links betweenteacher and student through affectivity in thelearning process, and pointing out new paths foreducation challenges.The seminar is an extension of the Teachers ofBrazil Award, an annual Fundação Bunge contestin partnership with the Ministry of Education andthe Orsa Foundation. The speakers are teacherswho received this Award in recognition ofinnovative projects developed in the classroom,and local teachers who work in the cities wherethe seminar is conducted.ReciCriar ImpactIn the School- Helps to improve the continuous teachereducation process- Contributes to improved quality of education inpublic schools- Recognizes local pedagogic projects, stimulatingeducators to rethink their teaching practices- Recognizes cultural diversity- Promotes teamwork through exchangingexperiencesIn Companies- Contributes to the transformation of localcommunities through seminars on education- Deepens relations with local communities, givingmore visibility to the company- Makes it possible to integrate new partnerships- Strengthens the qualification of internal talentby training volunteer employees who work inorganizing and executing the ReciCriar project- Contributes to employee motivationNumbers in 2006The program was carried out in five regions(Gaspar/SC, Rio Grande/RS, Uruçuí/PI, Santos/SP,and Araxá/MG), and involved 2,567 educatorsfrom state and municipal public schools. In 2005,there were 2,385 educators.PartnershipsPartnerships were established with governmenteducational departments, schools, universities, andinstitutions to conduct the seminars.Assessment- In 2006, the ReciCriar program recorded“excellent” approval ratings between 77% and 93%- The applicability of the concepts in theclassroom received an “excellent” rating between67% to 88%- In terms of workshops, “excellent” ratings byparticipants varied between 78% and 100%- Workshop content applicability rated “excellent”between 68% and 100%74

SOCIAL RESPONSIBILITY3. INCENTIVE TO EXCELLENCEConsists of recognition through awards.FUNDAÇÃO BUNGE AWARDThis annual award recognizes renownedpersonalities and stimulates the developmentof new talent in science, literature, and arts.Award recipients receive gold and silver medals,parchment diplomas, and a R$30,000 award forthe Youth category and R$70,000 for the Life andWork category during a ceremony presided bythe Governor of the State of São Paulo and theFundação Bunge honorary president. Throughoutthe Award’s history, more than 147 personalitieshave been honored. These include: Carlos ChagasFilho, Jacques Marcovitch, Érico Veríssimo, MiguelReale, Paulo Freire, and Ruth Rocha.Results in 2006- 82 indications- 51 universities involved nationwide- The award ceremony had an attendance ofapproximately one thousand, between authorities,customers, and suppliers- Four award recipients, in the following categories:Fundação Bunge Food Technology Award; FoodTechnology Youth Award; Museology; and Youth inMuseologyPRÊMIO PROFESSORES DO BRASIL – TEACHERS OFBRAZIL AWARDIn partnership with the Ministry of Education andthe Orsa Foundation, this annual award recognizespublic school teachers who develop differentiatedprojects in the classroom.The award is presented to 20 teachers – 10 fromelementary schools and 10 from grade schools.Besides having their work recognized by the Ministryof Education, the teachers receive R$5,000, adiploma, a trophy (created by artist Maria Bonomi),and a trip to Brasília, where they are met by theMinister of Education. Since its creation 11 years ago,165 teachers from 23 states have received the award(only for elementary schools).Fundação Bunge conducts, together with theMinistry of Education, the Teachers of BrazilSeminar, whose objective is to promote theexchange of experiences between teachers whoreceive the award and teachers from public schoolsin the Distrito Federal.In 2006, the second edition of the award waslaunched, to be presented in 2007.The second edition of the Teachers of Brazil Awardwas launched, to be presented in 2007.4. HISTORIC RESPONSIBILITYAND CORPORATE MEMORYPromoted through the maintenance anddissemination of memory preservation practices.CENTRO DE MEMÓRIA BUNGE (Bunge Memory Center)The center reserves and makes available to thecommunity a rich historic and cultural collectionof the Bunge companies, showing the evolutionof customs, industrial techniques, agribusiness,marketing, and publicity. It also promotes courses,visits, and free exhibitions.The Bunge Memory Center works in three areas:Internal Actions Management, InformationManagement and Cultural Diffusion, andEducational Action. In 2006, the actions executedby the BMC totaled direct service to 69,072 people.In 2005, there were 62,559 people. In its 12 yearsof operations, the Bunge Memory Center served161,746 people.The entity promotes, since 2004, Cultural Journeys,free seminars and workshops conducted byspecialists in preservation of cultural assets, whichcontribute to document conservation awareness. Italso provides assistance to corporations and schoolsin structuring projects to rescue and preserve thenational memory. The center has partnerships withbanks, museums, universities, cultural councils, andgovernment agencies.Bunge AlimentosGINÁSTICA DA MELHOR IDADE (BEST AGE FITNESS)The Best Age Fitness Program is a project developedby the Gaspar Municipal Sports Foundation (SC)together with the Social Development Council forpeople over 60. In 2006, 19 people enrolled in theprogram, and 40 classes were taken.SEGUNDO TEMPO (SECOND HALF)In Luziânia (GO) and Gaspar (SC), the SecondHalf Project is developed in partnership withthe Ministry of Sports and local city halls, toassist children and teenagers from seven to 16years of age, offering school tutoring, meals, andsports, recreational, and cultural activities (soccer,swimming, volleyball, capoeira, choir, etc.), givingpriority to children and teenagers in high riskconditions. At the Projects Bunge Center, around400 children and adolescents use the facilities ofthe Associação Desportista Classista Bunge, ADCB(Bunge Sports Association), to do the activitiesavailable in Luziânia, with another 300 childrenand adolescents in Gaspar.75

FUNDO DE AMPARO À INFÂNCIA – FIA (CHILDRENSUPPORT FUND)In 2006, approximately R$900,000 were donatedto 22 charities and cultural institutions in thecities of Gaspar (SC), Blumenau (SC), Joinville(SC), São Francisco do Sul (SC), Pedro Afonso(TO), Rondonópolis (MT), Uruçuí (PI), PassoFundo (RS), Sâo Paulo (SP), Sorriso (MT), andSantos (SP). The donated funds are used to supportthe educational, athletic, social, and culturaldevelopment, of children and adolescents in needin the regions where the company operates.ASSOCIAÇÃO DESPORTISTA CLASSISTA BUNGE– ADCB (BUNGE SPORTS ASSOCIATION)Bunge Alimentos maintains these centers at its units topromote social and sporting activities for employees,their families, and members of the community.JOVEM CIDADÃO (YOUNG CITIZEN)Launched in 1993, the Young Citizen programis a Bunge Alimentos employability initiative,designed to offer practical learning andexperience in the labor market for adolescents intheir last year of junior high school. The programis administered in the Jaguaré district in SãoPaulo, in a partnership with the organizationJuventude Cívica from the Osasco region (Juco).PROJECT GAROTADA BUNGE (BUNGE KIDS PROJECT)This idea came from a partnership betweenBunge Alimentos and the Águia Dourada SoccerSchool, in the district of Jaguaré (SP), headedby a collaborator and his wife – who had nosupport and little infrastructure. Bunge decidedto let them use the ADCB court, and the BungeKids project was born in September 2000.The initiative grew, obtained new trainers, andinvolved the community. Today, in addition tothe structure provided for practice, the companyoffers sports materials and meals for about 90children and teenagers, divided into six categories(from “diapers” to “juvenile”). The Bunge Kidsteams have become very well-known in the sportscommunity, and many of those kids, formerstudents, are already playing in professional teams.Bunge FertilizantesPROJETO SEMEANDO (SOWING PROJECT)Bunge Fertilizantes sponsors the Sowing Project,an initiative of the National Rural Learning Service(Senar Minas) and the Minas Gerais Agriculturaland Cattle Breeding Federation (Faemg). Theobjective of the program is to stimulate educationalactivities at schools to develop an understanding ofthe relations between the countryside, the city, andthe environment, within the context of citizenshipand quality of life. The goal of the Sowing Programin 2007 is to reach 853 municipalities in MinasGerais, totaling 2.5 million elementary schoolstudents. The Sowing Program is offered to studentsof rural and urban public elementary schools andtheir teachers.Number of individuals who benefited from the Sowing ProgramStudents Teachers Schools Municipalities in MG1st to 4th 5th to 8th Total 1st to 4th 5th to 8th Total Total Total1,231,439 876,876 2,108,315 57,766 35,932 93,968 8,280 782Risk Communication Program in AraxáIn November 2006, due to the expansion of sulphuric acid production at the Araxá unit, the companyconducted a forum inviting internal audiences (directors, heads, employees) and external audiences (politicalenvironmental authorities, representatives of the community, presidents and members of homeownersassociations of districts around the company).The main objective of the forum was to introduce the Bunge Fertilizantes Risk Communication Program,prepared according to the State Environment Foundation (FEAM) requirements, which will have several actionsrelated to the community to be conducted in and after 2007. Some examples are the creation of civil defensecenters and training firefighters, among other activities prepared in partnership with the local community.76

SOCIAL RESPONSIBILITYPROJETO JOVEM CIDADÃO (YOUNG CITIZEN PROJECT)Started in July 2005, its main objective is togive opportunities to young adults in need atadministrative areas of companies in Candeias(BA). The project runs under an agreement withthe local city hall, which selected four adolescentsfor the program. Each one receives an allowanceequivalent to half the minimum salary per month,in addition to medical and social assistance. Thefirst cycle was completed in July 2006, and thefour members of the group are already workingfor companies in the region.FertimportREURBANIZATION OF THE SURROUNDINGSOF THE PORT OF SANTOSThe TGG/TERMAG construction works caused anintense traffic situation in the proximity of the portarea. As a result, a partnership was established withthe Guarujá City Hall and the Environment Councilto urbanize and pave the area, including buildingwalkways and creating green areas. The constructionwork underway represents an investment ofapproximately R$400,000.Bribery and CorruptionThe company has an Ethics Code, published onthe intranet and signed by all employees annually,with mandatory protocols issued. The supply andpurchasing areas adopt a specific published formalstandard to regulate the relationship with suppliers.The company’s global headquarters in the UnitedStates have formal mechanisms of complianceestablished in 1977 with the enacting of the FCPA law(U.S. Foreign Corrupt Practices Act of 1977). This lawmakes it illegal to donate items of value to officials ofa foreign government to obtain or maintain business,or to gain improper advantages.Political ContributionsBunge understands that it is part of the socialresponsibility process to support public campaigns,political parties, and candidates that contributeto strengthen citizenship and to the progress ofagribusiness. In this context, it made financialcontributions in 2006 totaling R$5.8 million topoliticians, political parties, or related institutions.Competitiveness and PricingIn 2006, the public civil action number950051034-0 that was filed in 1995 at the 15thcivil court of São Paulos’s judicial subsection,demanding that contractual clauses consideredabusive were deemed void for supposedlydamaging free trade in the fertilizer market wasunderway.Bunge follows the legal requirement of submittingto the Cade, the anti-trust division of Brazil’sJustice Ministry, all transactions and businessoperations related to acquisitions, mergers,incorporations, partnerships, etc. It follows themodel determined by that entity and waits for theresult of any possible concentration acts.Cultural SponsorshipCultural projects supported by the Rouanet Law, sponsored byFertimport, and executed in 2006:1) Colheitas do Brasil (Brazilian Harvest), by Luiz Mendes, bookprojectA bilingual book, illustrated with works by Luiz Mendes and historicaltext, was released in August 2006 at the Museu da Casa Brasileira, in SãoPaulo, where the artist had an exhibition.2) Cidade de Santos Ballet ProjectFertimport sponsored participation of the Cidade dos Santos Balletcompany in the World Dance Festival, in New York, between April 19and 23, 2006. The sponsorship included a seminar in preparation forthe trip (conducted by ballet dancer Luciana Porta), the trip with allexpenses paid, and the costumes used. The Ballet won first place withthe Ball Masque piece.77

Bunge Sustainability Report – 2007 edition78

METHODOLOGYmethodology andGRI indexThe commitment with transparency, and the constantenhancement of the reporting process lead us to theprogressive implementation of the GRI standardThe 2006 Bunge Sustainability Report providesemployees, suppliers, customers, consumers,non-governmental organizations (NGOs),governments, and others with a wide range ofinformation related to Bunge’s operations inBrazil, which include Bunge Alimentos, BungeFertilizantes, and Fertimport. The publicationaddresses subjects related to sustainability in itsbroadest sense, such as economic, environmental,and social performance, in addition to informationand data about Bunge’s policies, goals, objectives,results, and structure in Brazil.As with the publication for the previous year,this report follows guidelines set by the GlobalReporting Initiative (GRI), an international entitythat consists of corporations, institutions, andNGOs worldwide and proposes a report templatebased on information transparency and reliability.Bunge adopted the 2002 version of the GRItemplate for collecting data on economic,environment, and social performance indicators.The remaining chapters were prepared based onthe G3 version launched in October 2006. Thisstructure is part of Bunge’s efforts to graduallyintroduce all directives in the G3 version, a processthat should be completed in next year’s report.The content of this report reflects thecontributions of various departments throughoutBunge’s companies in Brazil. It was developedthrough a comprehensive process that solicitedinput from employees and other key stakeholdersin order to identify relevant sustainability issues.Third-party consultants were retained for reportanalysis and verification.The adoption of G3 guidelines in this editionshows Bunge’s firm commitment to transparencyin reporting on its activities. The result is a morecomplete report, with more content, that reflectsthe company’s continuing efforts to addresssustainable development in its operations.In comparison with the previous report, allchapters complied with a larger number of GRIguidelines. The 2006 report also gained a newchapter, “Relationship with Interested Parties,”which consolidates information of interest tovarious stakeholders.In Brazil, Bunge has published sustainabilityreports since 2004, and in 2003 it published asocio-environmental report. By continuing toreport on our activities in this manner, we reinforceour commitment to transparent and continuousimprovement of our operations.79

GRI CONTENT INDEXPROFILE1. Strategy and Analysis page1.1 Statement from the CEOs 21.2 Description of key impacts, risks, and opportunities. 2,7,8,92. Organizational Profile2.1 Name of the organization 72.2 Primary brands, products, and services 12,16,172.3 Operational structure 15,182.4 Location of organization’s headquarters 162.5 Number of countries where the organization operates 162.6 Nature of ownership and legal form 162.7 Markets served 152.8 Kind of organization 152.9 Significant decisions during the reporting period 182.10 Awards received 22,233. Report ParametersREPORT PROFILE3.1 Reporting period 793.2 Date of most recent previous report 793.3 Reporting cycle 793.4 Contact point for questions 88REPORT SCOPE AND BOUNDARY3.5 Process for defining report content 793.6 Boundary of the report 793.7 Limitations on the scope of the report 793.8 Basis for reporting elaboration 793.9 Data measurement techniques and the bases of calculationsInformationdisperse in thereport3.10 Explanation of the effect of re-statements of information provided in earlier reports NA3.11 Significant changes from previous reporting periods 79GRI CONTENT INDEX3.12 Table identifying the location of the Standard Disclosures in the report 80 a 86ASSURANCE3.13 Policy and current practice with regard to seeking external assurance for the reportNo externalassuranceapplied80

METHODOLOGY4. Governance, Commitments, and Engagement pageGOVERNANCE4.1 Governance structure of the organization 254.2 Indicate whether the Chair of the highest governance body is also anexecutive officer4.3 Number of members of the highest governance body that are independentand/or non-executive members4.4 Mechanisms for shareholders and employees to provide recommendations ordirection to the highest governance body4.5 Linkage between compensation for members of the highest governance body,senior managers, and executives and the organization’s performance4.6 Processes in place for the highest governance body to ensure conflicts ofinterest are avoided4.7 Process for determining the qualifications and expertise of the membersof the highest governance body for guiding the organization’s strategy oneconomic, environmental, and social topics4.8 Internally developed statements of mission or values, codes of conduct, andprinciples relevant to economic, environmental, and social performance4.9 Procedures of the highest governance body for overseeing the organization’sidentification and management of economic, environmental, and socialperformance252529NA602726274.10 Processes for evaluating the highest governance body’s own performance 28COMMITMENTS TO EXTERNAL INITIATIVES4.11 Explanation of whether and how the precautionary approach or principle isaddressed by the organization4.12 Externally developed economic, environmenta, and social charters,principles, or other initiatives to which the organization subscribes or endorses6013, 284.13 Memberships in associations and advocacy organizations 29STAKEHOLDER ENGAGEMENT4.14 Stakeholder groups engaged by the organization 31,33,34,354.15 Basis for identification and selection of stakeholders with whom to engage 31,33,34,354.16 Approaches to stakeholder engagement 31,344.17 Key topics and concerns that have been raised through stakeholderengagement, and how the organization has respondedNA - Non available.10,19,3281

PERFORMANCE INDICATORSECONOMIC PERFORMANCE INDICATORSDirect Economic ImpactspageCUSTOMERSEC1. Net sales 37EC2. Geographic breakdown of marketsNASUPPLIERSEC3. Cost of all goods, materials, and services purchased 38EC4. Percentage of contracts that were paid in accordance with agreed terms, excludingagreed penalty arrangementsNAEMPLOYEESEC5. Total payroll and benefits 38EC6. Distributions to providers of capital 39EC7. Increase/decrease in retained earnings at end of period 39PUBLIC SECTOREC8. Total sum of taxes of all types paid broken down by country 39EC9. Subsidies received 39EC10. Donations to community, civil society, and other groups 39EC12. Total spent on non-core business infrastructure development 38Indirect Economic ImpactsEC13. The organisation’s indirect economic impacts 19Obs.: Addition indicators in italic.NA – Non available.ENVIRONMENTAL PERFORMANCE INDICATORS MATERIALSMATERIAISpageEN1. Total materials use other than water, by type 41,42EN2. Percentage of materials used that are wastes (processed or unprocessed) fromsources external to the reporting organisation41ENERGYEN3. Direct energy use segmented by primary source 43,44EN4. Indirect energy useNAEN17. Initiatives to use renewable energy sources and to increase energy efficiency 43WATEREN5. Total water use 45EN 20. Water sources and related ecosystems/habitats significantly affected byuse of water44EN22. Total recycling and reuse of water 4582

METHODOLOGYBIODIVERSITYpageEN6. Location and size of land owned, leased, or managed in biodiversity-rich habitats 45EN7. Description of the major impacts on biodiversity associated with activitiesand products and servicesEN23. Total amount of land owned, leased, or managed for production activities orextractive use3,10,31,45,5445EN25. Impacts of activities and operations on protected and sensitive areas 10,19EN27. Objectives, programmes, and targets for protecting and restoring nativeecosystems and species in degraded areas45,46EMISSIONS, EFFLUENTS, AND WASTEEN8. Greenhouse gas emissions 49EN9. Use and emissions of ozone-depleting substances 49EN10. NOx, SOx, and other significant air emissions by type 49EN11. Total amount of waste by type and destination 50EN12. Significant discharges to water by type 51EN13. Significant spills of chemicals, oils, and fuels in terms of total numberand total volumeEN32. Water sources and related ecosystems/habitats significantly affected bydischarges of water and runoff5252SUPPLIERSEN33. Performance of suppliers relative to environmental components ofprograms and procedures55PRODUCTS AND SERVICESEN14. Significant environmental impacts of principal products and services 10EN15. Percentage of the weight of products sold that is actually reclaimedNACOMPLIANCEEN16. Incidents of and fines for non-compliance with all applicable internationaldeclarations/conventions/treaties, and national, sub-national, regional, and localregulations associated with environmental issues55TRANSPORTEN34. Significant environmental impacts of transportation usedfor logistical purposes52OVERALLEN35. Total environmental expenditures by type 53Obs.: Addition indicators in italic.NA – Non available.83

SOCIAL PERFORMANCE INDICATORS LABOR PRACTICES AND DECENT WORKEMPLOYMENTpageLA1. Workforce, status and by employment contract 58,59LA2. Net employment creation and turnover 60LA12. Employee benefits beyond those legally mandated 61,62LABOR/MANAGEMENT RELATIONSLA3. Percentage of employees represented by independent trade union organisationsor other bona fide employee representativesLA4. Policy and procedures involving information, consultation, and negotiationwith employees over changes in the reporting organisation’s operations6163HEALTH AND SAFETYLA5. Practices on recording and notification of occupational accidents and diseases 65LA6. Description of formal joint health and safety committees 63,64LA7. Standard injury, lost day, and absentee rates and number of work-related fatalities 65LA8. Description of policies or programs on HIV/AIDS 61TRAINING AND EDUCATIONLA9. Average hours of training per year per employee by category of employee 65LA16. Description of programs to support the continued employability ofemployees and to manage career endings64LA17. Specific policies and programs for skills management or for lifelong learning 65DIVERSITY AND OPPORTUNITYLA10. Description of equal opportunity policies or programs, as well asmonitoring systems to ensure compliance and results of monitoringLA11. Composition of senior management and corporate governance bodies includingfemale/male ratio and other indicators of diversity as culturally appropriate65,6659,60Obs.: Addition indicators in italic.NA – Non available.Bunge’s Private Port, Rio Grande – RS84

METHODOLOGYSOCIAL PERFORMANCE INDICATORS HUMAN RIGHTSSTRATEGY AND MANAGEMENTHR1. Description of policies, guidelines, corporate structure, and procedures to dealwith all aspects of human rightsHR2. Evidence of consideration of human rights impacts as part of investment andprocurement decisionsHR3. Políticas e procedimentos para avaliar o desempenho em direitos humanosdentro da cadeia de fornecedores e contratadosHR4. Description of global policy and procedures/programs preventing all forms ofdiscriminationpage13,29,57,5855NA59FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAININGHR5. Description of freedom of association policy 8,61CHILD LABORHR6. Description of policy excluding child labor as defined bythe ILO Convention 13858FORCED AND COMPULSORY LABORHR7. Description of policy to prevent forced and compulsory labor 13,29,58DISCIPLINARY PRACTICESHR9. Description of appeal practices, including, but not limited to, human rights issues. 58HR10. Description of non-retaliation policy and effective, confidential employeegrievance system60SECURITY PRACTICESHR11. Human rights training for security personnel 57Obs.: Addition indicators in italic.NA – Non available.Leasure and Environmental Center, Gaspar – SC85

SOCIAL PERFORMANCE INDICATORS: SOCIETYCOMMUNITYSO1. Description of policies to manage impacts on communities in areas affected by activities,as well as description of procedures/ programs to address this issue, including monitoringsystems and results of monitoringpage69 a 77SO4. Awards received 22,23BRIBERY AND CORRUPTIONSO2. Description of the policy, procedures/management systems, and compliancemechanisms for organisations and employees addressing bribery and corruption.77POLITICAL CONTRIBUTIONSSO3. Description of policy, procedures/management systems, and compliancemechanisms for managing political lobbying and contributions.SO5. Amount of money paid to political parties and institutions whose prime function isto fund political parties or their candidates.7777COMPETITION AND PRICINGSO6. Court decisions regarding cases pertaining to anti-trustand monopoly regulationsSO7. Description of policy, procedures/management systems, and compliance mechanisms forpreventing anti-competitive behavior7777Obs.: Addition indicators in italic.NA – Non available.SOCIAL PERFORMANCE INDICATORS:PRODUCT RESPONSIBILITYCUSTOMER HEALTH AND SAFETYPR1. Description of policy for preserving customer health andsafety during use of products and servicesPR4. Number and type of instances of non-compliance with regulations concerningcustomer health and safetyPR5. Number of complaints upheld by regulatory or similar official bodies to oversee orregulate the health and safety of products and servicesPR6. Voluntary code compliance, product labels or awards with respect to social and/orenvironmental responsibility that the reporter is qualified to use or has receivedpage67No instances ofnon-compliance67,6867PRODUCTS AND SERVICESPR2. Description of policy, procedures/management systems, and compliancemechanisms related to product information and labellingPR8. Description of policy, procedures/management systems, and compliancemechanisms related to customer satisfaction67,6867,68ADVERTISINGPR9. Description of policies, procedures/management systems, and compliancemechanisms for adherence to standards and voluntary codes related to advertising69PR10. Number and types of breaches of advertising and marketing regulations 69RESPECT FOR PRIVACYPR3. Description of policy, procedures/management systems, and compliancemechanisms for consumer privacyPR11. Number of substantiated complaints regarding breaches of consumer privacyNANo complaints inthe periodObs.: Addition indicators in italic.NA – Non available.86

Executive TEAM forBunge Companies IN BRAZILBUNGE CORPORATEBUNGE ALIMENTOS S/ABUNGE FERTILIZANTES S/AFERTIMPORTMário Alves Barbosa NetoSérgio Roberto WaldrichAdalgiso Maia Telles e SousaCarlo Filippo M. LovatelliMartinho da Mota SilveiraMilton NotrispeSergio Luiz PaivaSérgio Roberto WaldrichCEOJankees van der WildMurilo Braz Sant’annaAmador de CarvalhoAntónio Carlos BrancoArene TrevisanCharles von der HeydeMário Alves Barbosa NetoCEOAriosto da Riva NetoOlávio TakenakaPaulo César Matias TinocoSérgio Sabino da SilvaFrancisco SensJosé Claudio PaulinoAntónio Carlos BrancoCEOEdson GentileItalino Staniscia FilhoJosé Eduardo LopesPaulo César Santaella NaefRicardo BrunoHaroldo GianeziniJosé MantuaniHelio EfftingMarisa ThurlerIvo DreherVicente Lobo CruzJoanita KaroleskiJunior JustinoMarcelo LimaCreditsBunge Sustainability Report – 2007 edition (database: 2006)Coordination, editingand managementCorporate Communication – BrazilAuditingPricewaterhouseCoopersDesktop and text layoutReport ComunicaçãoEditorial ConsultingAssertiva Produções EditoriaisArt Direction andDesktop PublishingSergio Almeida CriaçãoPhoto EditionRicardo CorreaPhotographyClóvis FerreiraIvsonFernando BuenoBunge Memory CenterBunge Alimentos andBunge Fertilizantes’ archivesPrintingIpsis Gráfica e EditoraPaperCover: Couchê Fosco 300g/m 2Interior: Reciclato Suzano 90g/m 2Bunge CorporateAv. Maria Coelho Aguiar, 215, bloco D,5º andar, 05804-900, São Paulo – SPPhone.: (+55 11) 3741-4848www.bunge.com.brBunge Alimentos S/ARodovia Jorge Lacerda, s/nº, km 20,Poço Grande, 89110-000, Gaspar – SCPhone.: (+55 47) 3331-2222.www.bungealimentos.com.brBunge Fertilizantes S/AAv. Maria Coelho Aguiar, 215,bloco D, 3º e 5º andares,05804-900, São Paulo – SPPhone.: (+55 11) 3741-5550www.bungefertilizantes.com.brFertimportR. Frei Gaspar, 22, 8º andar, 11010-90Santos – SP, Phone.: (+55 13) 3201-9000www.fertimport.com.brFundação BungeAv. Maria Coelho Aguiar, 215, bloco D,5º andar, 05804-900, São Paulo – SPPhone.: (+55 11) 3741-1288www.fundacaobunge.org.brE-mail:bunge.comunicacao@bunge.com88

BungeSustainabilityReport2007 editionBrazil