SUSTAINABILITY REPORT

2016 ONE BANANA

CONTENTSustainable development 05

Who are we? 09

Economic growth 10

Promotion of gender equality 19

Integral health 21

Education 29

Sustainable communities 31

Natural resource conservation 35

Measures for climate change adaptation 39

Responsible management 46

Strategic partnerships 52

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Dear reader:

This report presents the outcomes of our efforts to ensure sustainability in all of our operations, which are based on the UN General Assembly’s Sustainable Development Goals. Through these goals, we seek to promote economic development, gender equality, health, education, sustainable communities, natural resource conservation, measures to adapt to climate change and responsible management.

Our company is a benchmark not only in terms of healthy profitability and productivity, but also in terms of active social responsibility and sustainability. We are committed to continuing to work in favor of development in the countries in which we operate through the creation of jobs that help our co-workers to develop to their full potential, while benefiting their families and of their communities.

I wish to invite all of my colleagues to carefully consider your personal involvement in the social and environmental aspects of your companies as these are the factors that will guide not only your long-term growth but also your ability to remain profitable, and sustainable. Your involvement is not dependent on the size of your organization but on the contribution made to empower stakeholders within your organization to achieve the goals necessary to ensure your sustainability goals are being met.

Fernando Bolaños ValleCEOAgroAmérica

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Sustainable development

At AgroAmerica we have implemented a sustainable development strategy which is evident in every area of our business: labor, environmental, social and economic. This strategy guarantees responsible production and long-term success.

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At AgroAmerica we strive to create an environment in which people have an adequate standard of living and where opportunities are created for them; for that rea-son, our actions focus on the Sustainable Development Goals1. SDGs were launched by the United Nations’ As-sembly General through the adoption of Resolution 70/1: Transforming our world: the 2030 Agenda for Sustainable Development.

The Sustainable Development Goals invite nations to formulate and implement work plans to eradicate poverty, protect the planet and ensure that all human beings enjoy peace and prosperity. The Sustainable Development Goals came into force in January 2016 with a set of strategic actions to respond to each goal and to be met by 2030.

1http://www.un.org/sustainabledevelopment/sustainable-development-goals/

• Economic growth• Promotion of gender equality• Integral health• Development of education• Sustainable communities • Natural resource conservation• Adaptation to climate change

The following Sustainable Development Goals are included in the work that we do in the banana business:

Since our company was created in 1958, people have been the focus and main pillar of everything we do. We are committed to respecting and protecting the human rights of our co-workers and firmly believe that this strengthens our competitive advantage and our business potential.

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10REDUCEDINEQUALITIES

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16 176

13 14 15

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Who are we?

We are an agrifood corporation leader in producti-vity, profitability and sustainable development. We specialize in growing, shipping and distributing tropi-cal fruits and vegetable oils.

From our beginnings in 1958 to date, we have become one of the largest agribusiness corporations in the region, with operations in the United States, Ecuador, Guatemala, Peru, Panama, Costa Rica, Mexico and Europe. We offer employment to more than 13,000 men and women who contribute to the socio-economic development of their respective countries.

Our major business areas are:

• Growing, shipping and distribution of tropical fruits, especially bananas (conventional and organic). We

have our own transportation and logistics company;

• Production and processing of vegetable oils;

• An investment portfolio in leading high-tech agriculture, renewable energy, restaurant and entertainment companies.

Our visionTo be a world-class agro-industrial company, in quality, productivity, profitability and corporate social responsibility.

Our missionTo be a world-class agro-industrial Company devoted to delivering to its customers and the world, high quality food with the highest international standards to contribute to the socio-economic development of the region.

Our values• Responsibility• Team work• Perseverance• Industriousness• Generosity• Honesty

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Economic growth

At AgroAmerica we work to actively focus on the three Sustainable Development Goals that promote economic growth based on living wages, workplace safety, cooperative associations, training, recognition and working climate:

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Employment generation

At AgroAmerica we create over 9,000

direct jobs in our banana operations

throughout the year.

We also promote local small and medium-sized companies, thus ge-nerating indirect employment for over 2,500 vendors who supply different resources and inputs that we require in the daily operations of our company.

Eradicating poverty in all of its forms continues to be one of the main challenges faced by mankind.

Actions undertaken by AgroAmerica:Employment generation Small and medium sized companiesLiving Wage measurement

Sustainable Development Goal No. 1: No poverty

1NOPOVERTY

Small and medium sized companies

1 ECUADOR

GENERATE LOCAL JOBS

GUATEMALA2USA3PANAMA4PERU

EUROPE

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AgroAmerica offers decent wages for its co-workers; this is ascertained through the measurement of the Living Wage, which is the measure of the minimum wage needed for a person to cover his/her basic needs. The Living Wage is not the same as the subsistence wage: the latter covers only biological needs. The Living Wage, by contrast, defines the sum of money that an individual requires to provide for his/her family in a specific time and place to allow them to live a full and decent life.

We are the first Company in Guatemala to carry out research regarding the concept of a Living Wage, to ensure that we pay our workers decent and appropriate wages, thus promoting the well-being of our workers and their families.

The calculation of the Living Wage was done with the assistance of a specialized firm that collected worker wage data, and compared them to information on their expenses in the communities where they live (the data are affected by variables such as inflation). The quantity and quality of their expenses was analyzed methodologically to determine if workers earn wages that permit them to live with dignity.

Outcomes of this study confirmed that AgroAmerica workers who work the number of days required by the Law receive sufficient revenue to live with dignity with their families.

Year

Salary at AgroAmerica is higher than the

minimum wage in Guatemala by:

Living wage gapSalary at AgroAmerica is higher than

the per capita GDP in Guatemala by: (*)

July ´11 113% 17% 97%

August ´13 105% 19% 104%

November ´14 83% 27% 107%

December ´15 79% 27% 88%

December ´16 81% 20% 88%*Source: Bank of Guatemala

Living Wage measurementIn December 2016,

AgroAmerica wages exceeded the Living Wage by 20%.

Our research and its outcomes have allowed us to better understand the sociocultural reality of our employees and their families to determine the direction and approach of our sustainable development projects.

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Internal policies

To promote inclusive and sustained economic growth, full and productive employment and decent work for all.

Actions undertaken by AgroAmérica:Internal policiesHotlineSaving and loan CoopProductivity AwardTraining

Sustainable Development Goal No.8: Decent work and economic growth

Occupational health Industrial safetyPromotion of leadershipReceptiveness of trade unions

AgroAmerica’s internal policies include guidelines and establish standards that guarantee the well-being and exercise of our employees’ labor rights.

Within our internal policies we have seven main labor policies, namely:

• Internal promotion: Employees may opt to a better job based on their skills;

• HIV/AIDS: We are committed to HIV-AIDS prevention and we offer our employees the opportunity to receive training on prevention;

• Human rights: we promote compliance, respect and protection of human rights in our working conditions and through our actions;

• Equality and non-discrimination: we offer the same work and promotion opportunities, in full respect of gender, race, religious beliefs, ideology, sexual preferences, and physical capacity. We recognize the same rights for all;

• Labor: we meet the rights and obligations under the Law and promote a positive work environment;

• Occupational health and safety: we promote a safe working environment for all workers through prevention and education practices in the workplace;

• Global Anticorruption: we promote a culture of zero corruption tolerance, based on domestic, European and international standards.

6,138

307TRAINING EVENTS ON

INTERNAL POLICIES WERE CONDUCTED DURING 2016

EMPLOYEES TRAINED

8DECENT WORKAND ECONOMICGROWTH

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We have implemented a “Hotline” to which our workers, their families and the members of their communi-ties can call and state their concerns, comments or suggestions, which become cases that we systematically monitor, and to the degree possible, we seek to resolve. These calls are completely anonymous and are hand-led by an independent company.

We have an ethics committee in charge of investigating and offering solutions to each case presented through the Ethics Line and through other means such as direct mail, labor climate surveys, focus groups, etc. The committee is formed by the Corpora-te Director, Corporate Attorney and Compliance Officer.

In this manner we are able to gua-rantee a harmonious environment among the company, our workers and communities, which results in impro-ved labor relations.

4,457WORKERS WERE

TRAINED IN 2016 TO

PROMOTE THE USE OF

THE HOTLINE

A cooperative is a group of people with their own orga-nization, which is duly legalized, and works to fulfill the common objectives and the aspirations of its members.

• Savings and loans with more favorable interest rates than local market rates;

• Funeral service benefits;• Food and basic necessities at prices which are 15-25%

lower than market prices.

Hotline Saving and loan coop

The following results were achieved by the association in 2016, which show the high level of acceptance and usage by employees:

Under the principles of the right to free association and democratic participation, the association contributes to the well-being of the employees, and its operations allow better use and yield of its revenues, which leads to a higher standard of living for employees, their families and communities.

Operations ResultsSavings $ 1,347,578.27

Loans granted $ 1,135,262.13

Sales revenues $ 2,265,032.80

Coop store that sells services and products

We created and promote a savings and loan association called “Mi Gente” in the South-west and South Coast of Guatemala, in which more than 73% of our workers in that region are members. We offer them the following services:

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The seventh edition of the Productivity Award took place In 2016. With it, AgroAmerica recognizes its most produc-tive employees, who have fewer admonishments, fewer ab-sences, and exhibit exemplary performance of their jobs.

The award consists of a monetary bonus for each win-ner but the goal exceeds just rewarding productivity: we seek to motivate our employees and inspire them to be disciplined and to set goals, not only at work but in their personal lives, and thus contribute to their family’s growth and well being.

Productivity award

3,297WORKERS HAVE RECEIVED

THIS AWARD BETWEEN

2010 AND 2016

OVER

At AgroAmerica we train our employees and provide them with the opportunity to do their job better, to accomplish personal growth and to promote a sense of identification with the company. We have a training program on technical, human and institutional affairs.

7,147WORKERS WERE TRAINED IN

312 TRAINING EVENTS DURING 20162015 2016

Number of training events 303 312

Number of workers trained 6,636 7,147

Training our employees

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• Corporate mission and vision • Company values• Labor rights• Order and cleanliness• Personal hygiene • Internal policies• General induction to the company • Team work • ISO 9001: 2008 Standard• Process-based management• Continuous improvement statistical tools• Leadership

The main topics on which our workers have been trained are:

Medical care in the workplace:

At AgroAmerica we ensure that we provide employees with optimal health conditions in their workplace as well as access to medical services. We have professional nurses who work on a daily basis to care for workers, whether to address preventive health, first aid and/or consultation in the event of illness.

Occupational health Medical activity led by physicians from the University of Colorado, USA

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7,663WORKERS PARTICIPATED IN

EVENTS ORGANIZED IN 2016

Preventive health events:

We carry out preventive health activities to ensure optimal health conditions for our employees and their families. These events include:

• Parasitic treatment, to avoid gastro-intestinal infections.

• Tetanus shots, to prevent this disease through wounds.• General examination, includes medical and blood

pressure exams, weight/height, and blood tests, to diagnose cases and offer the necessary medical recommendations.

Industrial safety

AgroAmerica is committed to safeguarding industrial safety conditions and offers a safe workplace with internal controls to avoid hazards, injuries, risks or diseases that may be caused by the work performed, thereby ensuring a risk-free work environment.

We have a partnership with Agrequima (www.agrequima.com.gt), a Guatemalan, private, not-for-profit and non-po-litical entity that ensures the responsible management of agrochemicals and helps us in training employees who apply or handle these products to ensure their proper and safe use.

5,196EMPLOYEES WERE TRAINED

ON INDUSTRIAL SAFETY

DURING 2016

• Use of personal protection gear• Hygiene in the workplace• Occupational health and safety

committee• Emergency brigades• First aid• Safe use and management of agrochemicals

The main topics covered by industrial safety training were:

We protect the health and safety of our workers.

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A company that specializes in human resource management was commissioned in 2016 to identify leaders within the workplace to promote innovation, organizational change and to facilitate internal communication channels. The study was conducted through surveying 1,457 employees in the South-western region of Guatemala. They identified the main leaders of the company based on the following attributes:

• Commitment• Closeness• Inspiration • Attitud

Work will be done during 2017 with the group of leaders identified through the surveys to train them and to enhance their leadership attributes within the organization. We seek to create a positive labor relations climate that influence a harmonious and peaceful life among our workers and other hierarchical levels of the company positively. This labor environment will create better conditions to exercise labor rights, to enhance performance and productivity, thereby creating a positive impact to promote high work standards.

Promotion of leadership

• Passion• Credibility• Trustworthiness

At Agroamerica we have maintained a relationship of dialogue with national and international trade unions as well as with global agencies that oversee labor and social well-being, with an aim to remain transparent and to give these agencies the opportunity to become acquainted with the sustainable business model that we have in place at AgroAmerica. We have carried out the following activities to maintain our relationship with the largest and oldest trade union organizations of Guatemala and the world:

• We have welcomed visitors from national and international trade unions at AgroAmérica operations.

• We have signed agreements to provide trade union training aimed at seeking sustainable development.

• We have participated in international meetings and have presented labor impact projects in trade union meetings.

Receptiveness of trade unions

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Promotion of gender

equalityAgroAmerica promotes the participation and empower-ment of women through employment opportunities that allow them to grow professionally and develop their fami-lies and communities.

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Actions undertaken by AgroAmerica:Creation of jobs for women

Sustainable Development Goal No. 5: Gender Equality:

Below we show, in percentages, the number of women who work for our company; this demonstrates their full and effective participation and the equal opportunities offered.

Creation of jobs for women

35%

15% 4%

8%OF THE WORKERS IN

OUR PACKING PLANTS ARE WOMEN

OF THE TOTAL FIELD AND PLANT WORKERS

ARE WOMEN

OF THE TOTAL ADMINISTRATIVE EMPLOYEES ARE

WOMEN

OF THE FIELD WORKERS ARE WOMEN

5GENDEREQUALITY

AgroAmérica also has women in executive positions throughout the corporation

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Integral health

At AgroAmerica we actively support Sustainable Development Goals that promote food and nutrition security. In Guatemala we offer integral health cove-rage in the departments of Escuintla, Quetzaltenango, Retalhuleu and San Marcos with preventive health practices to guarantee a healthy life for our workers, their families and the communities that surround our plantations.

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AgroAmerica opened a medical clinic in the south-western region of Guatemala in 2014 for its workers, families and communities

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End hunger, achieve food security and improved nutrition and promote sustainable agriculture.

Actions undertaken by AgroAmerica:Mother and Child Programs Nutritious School Meal ProgramA banana a day makes a difference

Sustainable Development Goal No.2: Zero Hunger

We work in partnership with the University of Colorado in the United States, to provide technical assistance and training to implement the Mother and Child Programs. The main objective of these programs is to reduce mother-child mortality and to contribute to the healthy growth and development of children between zero-to-two years of age.

Mother and child programs

AgroAmerica has a team of nurses that specialize in community relations that coordinates, implements and monitors the program

2ZEROHUNGER

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Both programs consist of training and home visits to regularly monitor participating mothers and children, thus ensuring the effectiveness of the program. AgroAmerica has a team of professionals including nurses and community relations specialists, which directly coordinates, executes and monitors the program.

Below is a description of how the programs operate:

“The children who reach satisfactory growth and nutritional development parameters by the age of three graduate from the program each year.”

The main objective of these programs is to reduce mother-child mortality and to contri-bute to the healthy growth and development of zero to two-year old children.

• Serves children from zero to three years of age;

• Trains mothers to identify risk signals in new-born babies, on early stimulation techniques, breastfeeding, nutrition, personal hygiene, accident and disease prevention and vaccination;

• Height and weight monitoring of children to implement corrective actions when needed;

• Household visits to provide training and to monitor children’s development and growth.

Coverage of the Healthy Child Program

Coverage of the Healthy Mother Program

Growing up Healthy 2015 2016Number of children served

478 620

Number of household visits made

2,966 3,213

Healthy Mothers 2015 2016Number of mothers in the program

399 341

Number of household visits made

986 660

• Aimed at pregnant women; • It teaches mothers to identify risk

signals during pregnancy, pre-natal care, post-partum depression, risk signals in new-born babies, adequate nutrition and breast feeding;

• Control and medical exams during pregnancy;

• Household visits to teach mothers and to monitor pregnancies through medical exams.

Healthy Child Healthy Mother

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It aims to help improve the nutrition and food security of children as part of an education program. The program consists of the donation of bananas to schools near our plantations, in the departments of Escuintla, Quetzaltenango, Retalhuleu and San Marcos, in Guatemala, as a nutritional supplement to their school snack.

With this program, AgroAmerica offers a comprehensive program to reduce child malnutrition through medical check-up events, training for mothers, teachers and children on a nutritious and balanced diet and on preventive health. We also monitor the growth and development of children in schools.

What is this program about?

Big Tick Award

PartnershipsWith the program “A banana a day makes a difference”, we seek to support the well-being of the community through the active participation of social actors: business, community and government. To this end, specialized local and government partnerships are established to offer preventive health activities such as training and medical check-up events. The support and organization of teachers, community leaders and mothers is required for the program succeed and meet the expected results.

For more information on the program, can be found at:: http://banasa.net/wp-content/uploads/2016/02/Manual-Banasa-12.02.2016.pdf

Through the implementation of the program “A banana a day makes a difference” AgroAmerica received the Big Tick award from Unilever, awarded to companies that make a positive difference in society. For more information, go to the link: http://www.bitc.org.uk/our-resources/case-studies/agroamerica-nutritious-school-meal-programme

Nutritious School Meal Program

(A banana a day makes a difference)

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Outcomes of the program

Nutrition

Access to nutritious food is ensured with the donation of a banana a day.

Nutritional value of bananas:

During 2016, the program was utilized in 19 schools of the Southern Coast and South-Western region of Guatemala:

2,634 5,9302015 2016

benefited children

Banana donation

Contains vitamins B and C

Mineral salts:• iron• phosphorous• patassium• calcium

3 Natural sugars

It prevents conditions such as:• anemia• high blood pressure• ulcers

Easy to digest food that supports general digestion

Energy

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Below is the statistical information of the school located in Escuintla, Guatemala which was used as the pilot school for the program. It shows improved academic performance in Mathematics and Language at the end of the program. Another outcome was the reduced number of malnutrition cases at the end of the school year.

School performance and impact of nutrition

99%OF THE CHILDREN ARE IN

THE NORMAL GROWTH AND

NUTRITION CURVE AT THE

END OF THE PROGRAM

2016 Normal curveMild

malnutritionModerate

malnutritionSevere

malnutritionFeb 244 16 3 4

Sep 265 1 0 1

2015 2016Average score in Mathematics 80 pts. 81 pts.

Average score in Language 80 pts. 82 pts.

Nutrition impact

School performance 3%SCHOOL PERFORMANCE

IMPROVEMENT IN MATH AND

LANGUAGE SKILLS IN 2016

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Training on preventive health is provided in participating schools through a partnership with different government agencies.

The subjects taught are:

• The one thousand day window• HIV prevention• Responsible parenthood• First aid• Preventive health to avoid illness

caused by vectors such as: Zika, Dengue, Malaria, Chikungunya

• Self-esteem• Prenatal care• Personal hygiene • Use of potable water to avoid

gastro-intestinal diseases

Training on preventive health

814MOTHERS, TEACHERS AND

COMMUNITY LEADERS

FROM RURAL ESCUINTLA,

GUATEMALA, WERE

TAUGHT PREVENTIVE

HEALTH DURING 2016

Preventive health activities

Preventive health training activities were also carried out in partnership with department-level health authorities in Escuintla, in Guatemala.

1,271 children participated in weight and height measuring activities to keep track of their growth and nutritional development.

1,363 children were given deworming treatment to prevent gastro-intestinal diseases.

Children´s weight and height activity

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Ensure healthy lives and promote well-being for all at all ages

Actions undertaken by AgroAmericaMedical clinic in partnership with the University of Colorado

Sustainable Development Goal No.3: Health and well-being

AgroAmerica operates a medical clinic which supports our vision of integral access to quality health resources in the area of our operations. The clinic is located in the South-Western region of Guatemala, where more than 30,000 persons live.

To make this project possible, we hired the University of Colorado in the United States, to provide us with tech-nical assistance and resident physicians for patient care, along with Guatemalan doctors and nurses.

For more information visit: http://www.ucdenver.edu/academics/colleges/medicalschool/administration/alumni/CUMedToday/features/globalhealth/Pages/

Guatemala-Clinic.aspx

The clinic provides health services to our workers, their families and the communities that surround us, in or-der to contribute to the development of the area, by providing access to high quality medical services at very low prices. As an example, a gene-ral medical consultation is priced at $3.50 for the community and $1.90 for company employees and their families.

The clinic was opened in 2014 and offers the following services:

• Medical consultation • Ultrasound exams• Lab tests• Pharmacy• Ambulance service • Dental clinic• Research center• Birthing and pregnancy center

Service 2015 2016Number of persons served 5,504 4,793

Medical visits 2,817 3,680

Procedures performed 114 231

Revisits 253 263

Emergencies served 59 102

Ultrasounds 477 223

Lab tests 7,119 6,823

Pharmacy 2,925 5,547

Deliveries 4

Services per person 2.5 3.5

Medical clinic in partnership with the University of Colorado

The delivery care service was opened in November 2016

3GOOD HEALTHAND WELL-BEING

Education

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At AgroAmerica we support the Sustainable Development Goal that promotes inclusive, equitable and quality education

Actions undertaken by AgroAmerica:Schooling for the children of our workers

Sustainable Development Goal No.4: Quality Education:

AgroAmerica built and developed a school for the children of our workers to give them access to high quality education and empower their families.

The school started operations in 2010. At present, 198 boys and girls study there in the pre-school and elementary grades.

2016THE FIRST CLASS

GRADUATED FROM THE SIXTH GRADE

AgroAmerica established a partnership with Funcafé (www.funcafe.org) who provide administration, monitoring, counseling and operation of the school. Funcafé is an institution with vast experience in the use of a methodology that enhances the active participation of students and promotes an innovative creative and teaching experiences.

Schooling for the children of our workers

In 2016, a student from our school was recognized as one of the best readers from private rural schools in the South-western region; she excee-ded the reading standards proposed by the Ministry of Education.

The school has been visited by tea-chers and schoolmasters from the area who are interested in replicating the teaching method we use.

4QUALITY EDUCATION

Sustainablecommunities

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Make cities and human settlements inclusive, safe, resilient and sustainable.

Actions undertaken by AgroAmerica:Community management projectsLocal partnerships Training events

Sustainable Development Goal No.11: Sustainable cities and communities

We support initiatives and projects of local stakeholders who request our participation in community management through our community relations staff. We seek to generate local self-management development capacity in communities, where the social actors (company, government and community) participate actively.

Community management projects focus on infrastructure, health and education.

67COMMUNITY MANAGEMENT

PROJECTS WERE CONDUCTED

IN THE SOUTH-WEST AND

SOUTHERN COAST OF

GUATEMALA DURING 2016

Infrastructure

Education

• Road repair• Street maintenance• Support in sports field infrastructure

• Maintenance of school infrastructure

• Transportation for recreational activities

• School cleaning• Donation of school desks • Donation of construction materials• Forest nurseries and reforestation

Health• Donation of inputs to health centers• Cleaning of communities• Donations to volunteer firefighters• Fumigation events in communities

to rid them of mosquitos • Reparation of drinking water supply

for the health center• Support to health centers to

coordinate preventive health training

• Cleaning of health centers• Maintenance of Ecofiltros

(ecologically-friendly water filters) in schools

Community management projects

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Government Non-governmental organizations

Private institutions

Community

To carry out community management work, we work in partnership with government and non-governmental agencies, with other private companies and leaders to accomplish greater impact. This produces sustainable development and all social actors are involved.

We work in partnership with the following stakeholders at the local level in the South-Western region and the Southern Coast of Guatemala:

• Ministries of Agriculture, Health and Education

• Ministry for Development

• Neighboring municipalities

• Food and Nutrition Safety Secretariat

• CONRED• National Forest Institute • National Literacy

Committee, CONALFA• Office for the Protection

of Children and Youths• Department-wide

Delegation of the Human Rights Ombudsman’s Office

• Departmental government

• Department for Protected Areas and

the Environment

• Banana Foundation, FUNDABANANO• Volunteer firefighters

• University of Colorado• Children´s Hospital of Colorado• Center for Global Health

University of Colorado• Climate Change Institute • Association of Independent

Banana Growers

• Community Development Councils, COCODE

• Local Mangrove Working Group

• Health Centers

Local partnerships

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1,296COMMUNITY LEADERS WERE

TRAINED IN THE SOUTH-

WEST AND SOUTHERN

COAST OF GUATEMALA

DURING 2016

We seek to build local capacity through courses for community leaders to broaden their knowledge and accomplish heightened impact through their actions for the benefit of society.

Subjects of the training offered in the South-West and Southern Coast of Guatemala:

• Malnutrition • HIV Prevention• First Aid• Environment and Certifications• Preventive Health • Self-esteem• Breastfeeding • Pregnancies in adolescents • Hand-washing• Safe water• Diseases borne by pets

Training events

• Natural disaster reduction• Dialogue among communities, a development model • Ethical persons and ethical companies • Mosquito control: lZika, Dengue, Chikungunya, Malaria • Climate change• Reducing Sigatoka in plantain and banana crops• Company Vision, Mission and Operations

Training for community leaders: “IX Corporate Social Responsability Forum: Ethical persons, ethical firms”

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Natural resource

conservationAgroAmerica follows environmental practices for the efficient use of natural resources while guaranteeing efficient production that responds to two of the Sustainable Development Objectives:

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Ensure water availability and sustainable management and sanitation for all.

Actions undertaken by AgroAmerica:Sustainable use of water

Sustainable Development Goal No. 6: Clean Water and Sanitation

A

At AgroAmerica we ensure the efficient use of water resources and guarantee their availability through different technologies. Below we present the sequence of investment in different techniques that have led us to save not only water but also energy and have contributed to improving the productive yield of plantations.

Technologies implemented by AgroAmerica for the efficient use of water:

We also have water reutilization techniques that allow the efficient use of this resource:

• Reservoir: They are able to collect water during the rainy season to use for irrigation when climate conditions require it. We currently have 8 reservoirs.

• Packing plants: The packing plant saves 80% of the water because there is a reutilization system which is part of the process.

Sustainable use of water

2012 2015

Permits continued sampling of mois-ture in the soil for the implementa-tion of irrigation programs. This reduces water

use by 30%.

Allows optimized application of irriga-tion in plantations,

using them efficient-ly, and thereby

reducing application

times by 33%. This improves production by

7% and reduces the use of fuels

by 30%.

Sensors for Irrigation

Micro-spraying Probes

Directly measures the content of moisture in the soil in real time

and in percentages in order to make

decisions.

2008Year of implementation Year of implementation Year of implementation

6CLEAN WATERAND SANITATION

Water reservoir for our operations in Perú

At AgroAmérica we keep water use controls, and do constant mo-nitoring and analysis to guarantee

the quality of the water used in the various farming activities.

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Ensure sustainable consumption and production patterns; also, to accomplish the ecologically sound management of chemicals and all waste throughout their life cycle.

Actions undertaken by AgroAmerica:RecyclingReusePartnership with World Wildlife Fund -WWF-Organic banana productionBanana purée processing plant

Sustainable Development Goal No. 12: Responsible consumption and production

A

At AgroAmerica we strive to reduce waste through recycling and resource reutilization:

At AgroAmerica we recycle 100% of the plastic agro-chemical containers used, in partnership with Agrequima (www.agrequima.org). Our headquarters in Guatemala has a paper recycling program in partnership with Red Ecológica (www.redecologica.com.gt), a company that is certified to recover and recycle paper through the “reduce, reuse and recycle” approach.

• Bags used in banana production to protect the fruit are reused 2.5 times.

• Soil conservation is essential to food security and to a sustainable future in food production. It also helps to combat and adapt to climate change. To that end, at AgroAmerica we reuse 80% of the banana plants as organic matter for soils; this guarantees integrated crop management by conserving fertility and reducing the use of agrochemicals.

Recycling Reuse

12RESPONSIBLECONSUMPTIONAND PRODUCTION

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In 2015 we signed an MOU with WWF to improve farming practices and reduce the use of agrochemicals. The shared objectives that we agreed to work with are:

• To reduce by 50% the total toxicity of pesticides, specifically fungicides, insecticides and herbicides used in the production of bananas, pineapples, palm oil, citrus fruits and melons, in areas that are close to the Mesoamerican reef and face a high risk of contamination;

• To reduce by 25% the use of fertilizers per ton in basic crops and to reduce water use in processing plants;

• To ensure the implementation of the best agricultural practices in at least three export agro-industry companies;

• To avoid the loss of organic matter in soils and/or to increase matter by 3%.

Memorandum of Understanding (MOU) Our mission is to be a major orga-nic grower and distributor in the industry. We meet the strict guideli-nes provided by U.S. Department of Agriculture through its organic food program. We also meet European standards.

Organic agriculture is known to im-prove soil fertility. In addition, che-micals such as pesticides or artificial nitrogen fertilizers are avoided. This also guarantees higher levels of nu-trient and anti-oxidant contents.

In order to minimize organic waste and optimize the use of fruit, a banana purée processing plant was was built in Guatemala in 2016. It processes bananas to transform them in aseptic banana purée which is used as a raw material in the food industry.

Partnership with World Wildlife Fund -WWF-

Organic banana production

Banana puree processing plant

Banana purée processing plant

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Measures for climate change

adaptationCommunity adaptation to climate change is the adjustment to natural and human systems in order to reduce the impacts of climate threats and enhance opportunities for common benefit. To achieve this, we work to empower community leaders to carry out impactful and development projects in their communities and to take action in the area of climate change.

At AgroAmerica we respond to three Sustainable Development Goals that help fight climate change and its effects:

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Take urgent action to combat climate change and its impacts.

Actions undertaken by AgroAmerica:Certificate course on Community Adaptation to Climate ChangeLocal Disaster Reduction Coordinator -COLRED-Weather StationsReforestation

Sustainable Development Goal No.13: Action in favor of climate

A

AgroAmerica established a partnership with the Institute for Climate Change of Guatemala to offer a certificate course for community leaders and workers of the company in the South-western region of the country, called “Community Adaptation to Climate Change”. It consisted of eight sessions during which the following modules were covered:

• Module I: Integrated basin management with emphasis on soil and water

• Module II: Adaptation to climate change• Module III: Disaster risk management and water

storage

The certificate course’s main objective is to build the local capacity of communities to

address the threats of climate change that affect their families,

communities and livelihoods.

During the course, three field visits were carried out in which partici-pants were able to put into practice the knowledge learned in each mo-dule. The knowledge acquired during the field visits was on: upper, middle and lower basins, vegetation types, soil conservation, topography, crops, agroforestry systems and rain catch-ment systems.

32PARTICIPANTS IN THE

CERTIFICATE COURSE

GRADUATED, INCLUDING

COMMUNITY LEADERS,

COMPANY WORKERS AND

GOVERNMENT AGENCIES, WHO

RECEIVED 56 HOURS OF TRAINING

Certificate course on Community Adaptation to Climate Change

Community adaptation to climate change “Certificate course graduation ceremony”

13CLIMATE ACTION

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Due to the characteristics of the Guatemalan territory that make it vulnerable to the periodic occurrence of phenomena that cause natural disasters, AgroAmerica partnered with the National Coordinator for Disaster Reduction -CONRED- to train community leaders and company workers over five months in order to organize the Local Disaster Reduction Coordinator in the communities of the South-western region of the country.

The main reasons to create Local Disaster Reduction Coordinators are:

• To establish mechanisms, procedures and standards that promote disaster reduction;

• To organize, train and monitor communities to establish a disaster reduction culture;

• To produce emergency plans to respond to natural or induced phenomena;

• To develop coordinated plans and strategies with institutions for the restoration of public services and lines that are essential in cases of disasters.

92PEOPLE FROM 12 COMMUNITIES

IN THE SOUTH-WESTERN

REGION OF THE COUNTRY

WERE ACCREDITED AS OFFICIAL

LOCAL DISASTER REDUCTION

COORDINATORS; THEY

RECEIVED

54 HOURS OF TRAINING

Local Disaster Reduction Coordinator -COLRED-

COLRED accreditation received by 92 community leaders

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WWF

Climate Change Institute

In partnership with the Climate Change Institute, AgroAmerica built a weather station with sensors that provide data on rainfall, wind speed and direction, relative humidity, temperature, sun radiation and atmospheric pressure.

The information generated by this station is connected to a database of the Southern Coast of Guatemala whereby it is possible to access weather information in real time and to download historical data for decision making, through the following platform:https://redmet.icc.org.gt/login

WWF installed a weather station in AgroAmerica operations and also provided training through WWF specialists to workers and independent banana producers in the area, in order to implement a model for the control of Sigatoka disease, based on climate information collected to make decisions and to reduce the use of pesticides that control this disease in plantations.

The weather station is linked to a WWF network to obtain weather information in real time via mobile phone at the following link: http://www.wwf-mar.org:8080/livedata/collection.jsf?template=weather&node=6012&units=metric

At AgroAmerica we have implemented reforestation

programs. In 2016, we reforested 12 hectares.

Reforestation

In the Southern Coast and the South-western region of Guatemala, we have weather stations that provide the following climate information: humidity, temperature, wind speed and direction, rainfall, evapotranspiration, global radiation and other variables.

During 2016 we established a partnership with WWF and the Climate Change Institute to install experimental weather stations connected to information systems that permit the implementation of sustainable practices:

Weather stationsWe currently have 9 weather stations in the plantations, which are fully monitored for the efficient use of resources and to reduce the use of agrochemicals.

Weather stations installed by WWF

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A

Guatemala is a country with a large variety of ecosystems, including mangroves that are internationally important wetlands. AgroAmerica participates in the mangrove technical working group on the South Coast of Guatemala, with an aim to contribute to the conservation and wise use of wetlands through local and regional actions.

The activities conducted together with the mangrove technical working group are:

• Community nurseries for which 13,000 tree seeds were donated

• Reforestation and mangrove monitoring• Teaching on conservation, recovery and the importance of mangroves in schools and to community leaders.

Mangrove technical working group

The main participants in the mangrove technical working group are:

• National Forest Institute • Climate Change Institute• Association of Independent Banana Growers

• Sugar mills• Neighboring municipalities • Community leaders in communities that neighbor mangrove areas manglares

Sustainable Development Goal No.14: Life Below Water

Conserve and sustainably use the oceans, seas, and marine resources for sustainable development.

Actions undertaken by AgroAmerica:Mangrove Technical Working GroupBasins Committee

“Mangroves are life” March carried out by the

members of the technical working group to promote

its conservation in communities

14LIFEBELOW WATER

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Guatemala has been impacted considerably by reduced rainfall, higher temperatures and the reduction of the level of water in rivers as a result of climate events affecting the world.

At AgroAmerica we seek to implement climate change adaptation measures through our active participation in the River Basin Committees in the South-West and Southern Coast of the country.

The main objectives of the Basin Committees are:

• To make rational and sustainable use of river water resources by all users;

• Adopting strategies to mitigate the impact of floods;• Promoting a dialogue on transparency and coordination

among the users of rivers; • Improving the living conditions of citizens who live in

river basins, by proposing economically, socially and environmentally feasible solutions.

AgroAmerica participates in five major basins, and committees are a participatory effort by all social stakeholders from business, government and civil society. Below we list the members of the committees:

• Agro-industry• Ministry of Agriculture, Livestock and Food• Ministry of the Environment and Natural Resources • Municipalities• Department of Water Resources and Basins• State Territory Reserve Control Offices• Association of Independent Banana Growers• Presidential Commission for the Coordination of Human Rights Policies -COPREDEH- • Departmental Government• National Disaster Reduction Commission• Climate Change Institute• Hydroelectric Power Plants• Community Leaders• National Forest Institute • National Disaster Reduction Coordinator -CONRED-

The main activities carried out by AgroAmerica together with basin committees have been:

• Organization of technical working groups to discuss environmental and social issues;

• Mapping of social actors and users of river basins;

• Gathering basic information about users and volumes of the main rivers;

• Establishing a baseline to help make better use of water resources

Basin committees

Agroamerica´s Corporate Director signs agreement

with the committee working on basins together with the governor of the department

of Retalhuleu

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Promote the sustainable use of land ecosystems and manage forests sustainably

Actions undertaken by AgroAmerica:Diversity of flora and faunaForestsCommitment to not deforest

Sustainable Development Goal No.15: Life on land

At AgroAmerica we preserve biolo-gical diversity and have identified the flora and fauna species that live in our plantations through environmental studies, with the following findings:

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35FOREST AND ORNAMENTAL

FLOWER SPECIES AND

WATER AND LAND FAUNA

SPECIES HAVE BEEN IDENTIFIED

We currently maintain 47.21 hectares of forest area

within the plantations

Diversity of flora and fauna

We promote forest conservation to prevent floods, erosion and to protect flora and fauna.

Forests

AgroAmérica is aware that deforestation and other non-sustainable practices have adverse consequences for persons and the environment. For that reason in 2016, we have signed a non-deforestation policy where we pledge not to deforest high conservation value forests, not to burn plots of land, to forbid hunting ant the collection, extraction and trafficking od wild animals.

Commitment not to deforest

15LIFEON LAND

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Responsible management

At AgroAmerica we know that to guarantee the results of our efforts we must constantly evaluate them. We also believe that being certified and mee-ting international standards is critical to our business, so our employees, the communities around us, our customers and our investors can be assured that we ensure sustainable and responsible production.

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The Rainforest Alliance Certificate covers 10 criteria related to continuous improvement as well as economic, environmental and social aspects that guarantee and promote the concept of sustainable agriculture.

The main criteria which are evaluated are:

Rainforest Alliance Certificationwww.rainforest-alliance.org/es

In Guatemala and Ecuador, 100% of our producing farms are certified, and 6,344 workers have been trained on the criteria that are evaluated by Rainforest Alliance.

Global GAP Certification is based on the best practices that contribute to product quality, to the health of employees and to environmental protection.

The main criteria which are evaluated are:

Global GAPCertificationwww.globalgap.org

In Guatemala and Ecuador, 100% of the farms that are producing are certified, and 6,344 workers have been trained on the criteria that are evaluated by Global Gap.

Our certifications are specifically for agricultural, labor, economic and social practices that allow operations with global standards and to differentiate us in the world market:

International certifications

• Social and environmental management systems

• Preservation of ecosystems• Wild life protection• Water conservation• Fair work practices and good

working conditions• Occupational health and safety• Community relations• Integrated crop management• Soil use and conservation• Integrated waste management

• Traceability• Maintenance of information and internal audits• Resource history and use management• Management of soil and subsoil, fertilizers, irrigation,

crop protection and harvest• Product management• Waste management• Worker health, safety and well-being• The environment• Claims and complaints

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Business Alliance for Secure Commerce -BASC- Certification

The BASC Certification covers the management of global safety and security standards and of procedures applicable to the logistics chain in international trade. AgroAmerica is the first banana grower in the region to be certified by BASC.

The criteria which are audited are:

http://www.wbasco.org/

In Guatemala operations, 9% of the packing plants are certified and 733 workers have been trained on the criteria which are evaluated by BASC.

We are also BASC certified in the transportation and logistics busi-ness area.

SCS Certification

SCS Global Services (SCS) provides global leadership on independent environmental and sustainability certifications, and on standards audits, verification and development. The main criteria that are assessed by SCE are: environmental care, use of agro-chemicals and food security.

www.scsglobalservices.com

C- TPAT of the Customs and Border Protection Office of the United States

https://www.cbp.gov/border-security/ports-entry/cargo-security/c-tpat-customs-trade-partnership-against-terrorism

In Guatemala, 16% of our farms are certified and 878 workers have been trained on the criteria which are evaluated by SCS.

As a member of the United States Border Patrol’s Customs-Trade Partnership Against Terrorism (C-TPAT), AgroAmerica has been recognized for its continued commitment to protecting its banana supply chain, identifying any possible security gaps, and uniformly implementing the best security practices in the fight to prevent terrorism.

• Container and load security• Physical access control• Personnel security• Safety and security processes• Physical safety• Technological security• Training in security and threats• Safety and security assessment

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USDA ORGANIC Certificationhttp://www.cuperu.com/portal/en/programas-de-certificacion/organico/usda-nop

This certification is for agricultural and animal products and wild collection under USDA National Organic Program for the United States Market.

It is based on the Norms for Organic Production of the United States (NOP-USDA), created by the U.S. Department of Agriculture. This certificate is needed by companies wishing to export their organic production to the United States, even if they have certificates for other countries.

European Community Regulation for Organic Production http://www.cuperu.com/portal/es/programas-de-certificacion/organico/cee-8342007-8892008

The European Organic Certifica-tion is based on Organic Production Norms EU 834/2007 - EU 889/2008, created by the European Economic Community.

This certificate is needed by produ-cers wishing to export their organic production to Europe, even if they have certificates for other countries.

To obtain the certificate it is neces-sary to meet the norms, and to be certified by a certifier that meets ISO 65, and that is accredited by a Euro-pean regulator, such as RVA of the Netherlands. 100% of our organic banana

production in Peru is certified and 250 workers have been trained on the criteria that are evaluated by USDA Organic.

100% of the organic banana-producing farms in Peru are certified and 250 workers have been trained on the criteria evaluated by the European Community Regulation for Organic Production.

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Certifications in Guatemala and Ecuador

Certifications in Perú

Name of the CertificationRain

forestNumber of workers who have received training on the certification

6,344

Percentage of working farms that have been certified

100%

Name of the CertificationUSDA

OrganicNumber of workers who have received training on the certification

250

Percentage of working farms that have been certified

100%

Name of the CertificationGlobal Gap

Number of workers who have received training on the certification

6,333

Percentage of working farms that have been certified

100%

Name of the Certification BASCNumber of workers who have received training on the certification

733

Percentage of working farms that have been certified

9%

Name of the Certification SCSNumber of workers who have received training on the certification

878

Percentage of working farms that have been certified

16%

Name of the Certification

European Community Regulation for Organic Production

Number of workers who have received training on the certification

250

Percentage of working farms that have been certified

100%

We are also BASC certified in the transportation and logitics business area.

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Customer audits

During 2015 we were audited by customers 6 times. We provided training to a total of 1,694 workers on the subjects and criteria that are evaluated by the different audit programs.

An average of 45% of the farms were audited during 2016 by government authorities. The main criteria of the evaluation were: food safety, sanitary operations, labor and practices and environmental evaluations.

Government audits

• Compliance with the Law• Occupational health and safety• Environmental affairs• Labor practices• Anti-corruption measures• Working conditions• Fair wages • Ethical standards

The main criteria evaluated in the audits were:

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Strategic partnerships

AgroAmerica believes in building positive relations with our stakeholders through active and ongoing communications based on dialogue, which becomes a path to development.

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Association of Independent Banana

GrowersWe are members of the

Board of Directors

Guatemalan Exporters’ Association

We are members of AGEXPORT that seeks to enhance competitiveness through the implementa-tion of quality systems in

the production chain for exports.

World Economic Forum

AgroAmerica works towards defining shared challenges, solutions and initiatives within the spirit

of global citizenship. It promotes public –private

partnerships.

Chamber of Industry of Guatemala

We support the develo-pment of the industrial sector with initiatives in work areas, competiti-veness, trade and legal

affairs.

Agricultural Chamber of Guatemala

We are members and contribute rural develop-

ment, food security and competitive-

ness initiatives.

AmCham GuatemalaWe participate in its acti-vities and have been the recipients of their Award

to Contributions to the Community through Education.

At AgroAmerica we currently have a database with over 1,641 local stakeholders that include community leaders, religious leaders, members of Community Development Committees (COCODES), teachers, schoolmasters, mothers who participate in community-wide programs, government agencies, NGOs and the media.

We have contributed to and we have strategic partner-ships with national and international labor, business and CSR organizations.

Relationship with stakeholders for commercial purposes, in order to promote economic development projects in the industry and

in the region where we operate:

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Relationship with stakeholders in the area of Corporate Social Responsibility: To implement

sustainable projects that have a positive impact on persons, society and the environment.

Business for Social Responsibility

We are members of BSR, which helps companies

develop sustainable business strategies and

promotes solutions through consultancies,

research and multi-sector cooperation.

Sustainability Consortium

We are members and we support scientific

research and the deve-lopment of a framework and tools to reduce the

social and environmental impacts resulting from global consumption.

Business Persons for Education

We make financial contributions to this

organization that aims to improve the education of

the country.

Ministry of EducationWe work together with

the Ministry of Education to take education to the rural communities in the

south-Western region and in the South Coast of

Guatemala.

AgroAmerica is in constant communication with its stakeholders to implement joint projects and thus make a contribution to the development of the country.

Food and Nutrition Security Secretariat

We work with the Secre-tariat to provide training on preventive health in rural communities of

Guatemala.

Disaster Reduction Coordinator

We work with CONRED to establish local Disaster Reduction Network, with community leaders from

the areas where the company works.

Universidad del Istmo We work with the Univer-sity in the implementation of programs for education in values for the workers. The company has also offered scholarships

for students to continue their schooling at the

University.

Climate Change Institute

The Institute is a private organization and a leader in research and project

development for Climate Change mitigation and adaptation in communi-ties, productive processes and regional infrastruc-ture. We established a partnership with the Institute to teach a certificate course on

“Community Adaptation to Climate Change” in the South-Western and Southern Coast areas of

Guatemala.

AgrequimiaWe have carried out

training programs on the responsible use of agro-chemicals and on plastic

container recycling.

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Center for Corporate Social Responsibility

in GuatemalaWe are members of the

Board of Directors to promote and contribute to CSR initiatives in Gua-temala and the region.

FUNCAFÉWe signed a memoran-dum of understanding with Funcafé to receive

technical assistance to implement a new

education method for the school of the children of

our workers.

World Banana Forum We are members of the World Banana Forum, which is a permanent point of contact for

representatives of the global supply of banana

to promote an open dialogue on how to face the challenges faced by

the banana sector.

WWFIn January 2015 we signed an MOU with

WWF to conserve natural resources and promote

sustainable farming practices.

World Food BankWe have worked with

BAG in Quetzaltenango and other rural areas of Guatemala that are a priority for their high levels of poverty and

malnutrition.

Colorado UniversityWe carry out commu-nity-wide programs in partnership with the Children’s Hospital of

Colorado. Also, the Univer-sity of Colorado provides technical, medical and research assistance at the medical clinic of

AgroAmerica.

USAID ALIANZASHas invested in AgroAme-

rica’s health programs in order to expand their

scope and raise their impact. New projects are under analysis to provide support to more neighbo-

ring communities.

Zamorano University

We make contributions to the Agricultural Develo-

pment Fund of Guate-mala which is funded

by agro-industry to offer fellowships at Zamorano University to financially

deprived students.

Ministry of Social Development

We provide cooperation to MIDES to carry out

social development programs jointly.

Red EcológicaWe work with this

company to recover and recycle the paper used in the central office of

Guatemala.

www.agroamerica.com