2014 SUSTAINABILITY REPORTPROVING OUR COMMITMENT TO SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

Everything stevia

CONTENTS

Our Approach to Sustainability

CEO StatementSustainability Strategy & GoalsStakeholdersMateriality

About PureCircle

Company BasicsGovernance & ComplianceSustainability ManagementMembership & Associations

Environmental Impacts

Environmental ManagementEnergy ManagementClimate ChangeWater Conservation & EfficiencyWaste & EffluentsLand Use & BiodiversityTransportation & Logistics

Workplace Impacts

Human CapitalLabor Practices & DiversityHealth & Safety

Community Impacts

Philanthropy & Charitable GivingFood Security

Product Impacts

Food Safety & QualityHealth & Nutrition

Product Life Cycle ImpactsCustomer Communications

Supply Chain Impacts

Suppliers RelationsWorking with Farmers

About This Report

Report Information

GRI Content Index

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OUR APPROACH TO SUSTAINABILITY

i

I AM PROUD TO PRESENT PURECIRCLE’S FIRST SUSTAINABILITY REPORT, WHICH OUTLINES OUR ENVIRONMENTAL AND SOCIAL COMMITMENTS AND TRACKS PROGRESS AGAINST THOSE GOALS.

CEO STATEMENT

This report is just one of the steps we are taking to ensure that we fulfill our responsibilities to stakeholders with

transparency, honesty, and proactive management.

PureCircle’s commitment to sustainability has been embedded in our corporate practices since the beginning.

We have extensive policies, management systems, and performance data that attests to our ongoing efforts, much of

which is included in the following pages.

I am particularly proud that we are taking a life-cycle approach to environmental management—examining and miti-

gating our impacts, beginning at the farm, all the way through processing and ultimately ending with the customer. By

carefully measuring impacts at each stage of the supply chain, we are able to focus our resources where they can do

the most good. That work is paying off: in 2013, our stevia products had a 29% - 79% smaller carbon footprint and a

92% - 96% lower water footprint than other sweeteners on the market.

We know that along with ensuring consistent supply of leaf, it is important to extract, purify and blend desired stevia

extracts at a scale, safety and consistency expected by our customers. We have in place the world’s largest stevia extraction

and purification plants, and as a responsible corporate citizen, we are conscious of our impacts. Extensive labor and human

rights programs are in place, including third party auditing, at our production facilities. Ongoing training, and our commit-

ment to transparency will ensure that our commitment to our people does not waver.

Some of the most exciting sustainability initiatives are happening in our supply chain as we engage with small-scale farmers

that grow the stevia plants. We are working with them on issues ranging from food security to waste reduction, biodiversity

to fertilizer application. Our sustainable agriculture policies and on-the-ground training are making a huge difference and we

have aggressive plans to do even more in the coming years.

Finally, a word about obesity, one of the toughest challenges facing food and beverage companies today. In 2013

alone, we supplied enough stevia to enable a reduction of 500 billion calories from global diets. We are proud to be

part of the effort to address the obesity crisis, and we are working with our customers to find new and exciting ways to

provide consumers with delicious options that meet lower-calorie goals.

Looking ahead, we see opportunity in many areas of sustainability, but also challenges. Scaling up our sustainability

efforts as our business grows will require significant attention and resources. This is particularly true at the farm level,

where our goal is to engage 100,000 farmers by 2020 in our sustainable agriculture programs.

I look forward to reporting back next year on our progress. In the meantime, please feel free to provide us feedback

on our sustainability performance through our website, or any of our communication channels. Open and transparent

engagement is at the heart of our sustainability strategy and I hope that you will be part of our journey.

Sincerely,

Magomet Malsagov

Chief Executive Officer

Sustainability Strategy & Goals

01

It is our mission to scale stevia as the next natural mainstream sustainable sweetener. Our

sustainability strategy is based on three important pillars:

Ecosystem

Our goal is to provide a net positive benefit to the people and the communities in

which we operate, from the land where thousands of our farmers live to the regions in

which we operate the world’s largest purification and extraction plants.

Environment

We strive to minimize our impact on the environment through strong procedures and

practices throughout the supply chain. Our stevia is grown, processed, and distributed in a

manner that has a dramatically lower carbon and water footprint than other sweeteners.

Public Health

We offer a great tasting, natural, no calorie sweetener that can effectively reduce

calories for a wide variety of products. Our focus on innovative product development

will help transform the marketplace so that consumers have better access to reduced-

calorie food and beverage options.

2020 Sustainability Intensity Goals (against 2011 baseline)

Focus Area Goal2013 Progress

To DateStatus

Reduce carbon intensity across the product life cycle

20 percent reduction 4 percent reduction On course

Reduce energy intensity across the product life cycle

20 percent reduction 42 percent reduction Exceeded

Reduce water intensity across the product life cycle

20 percent reduction24 percent reduction in

direct operationsOn course

Eliminate waste across our farming and processing operations

Zero waste to landfill99.3% diversion rate at our processing facilities

On course

Support small-scale farmers with our sustainable agriculture policy

100,000 farmers supported

18,000 farmers supported

On course

Ensure traceability from gate to individual farm

100% traceabilitySignificant traceability to

region and farm existsOn course

02

Stakeholders

We take pride in creating shared value with our stakeholders. From working with small-scale farmers to delighting consumers with the next

generation of stevia ingredients, we are committed to understanding and responding to stakeholder needs and opinions.

Stakeholders

Stakeholder DescriptionCommunication

ChannelsWhat They

ExpectWhat WeExpect

Supply Chain Partners

Our most critical supply chain partners are the farmers who grow the stevia used in all of our products. Other key suppliers include packaging, logistics, and processing ingredient providers.

Face-to-face and electronic collabora-tion, contracting and procurement.

Our suppliers look for honest and ethical treatment, and our farmers in particu-lar seek long-term partnerships that will allow them to develop additional capacity.

We need suppliers that meet our quality, envi-ronmental, health and nutrition, food safety, and labor and human rights expectations.

EmployeesOur employees span the globe and provide manpower, inno-vation, and inspiration.

Daily communication, training and skills development, perfor-mance reviews.

Employees want a fair paycheck, skills develop-ment opportunities, and effective leadership.

We seek the best and the brightest employees, espe-cially those that thrive in a fast-paced and innovative environment.

Customers andConsumers

We sell our products to other food companies, who use our stevia formulations to create lower-calorie options for con-sumers to enjoy.

Face-to-face and electronic communi-cation, trade associ-ations and learning laboratories.

Customers look to us for innovative products that meet consumers’ evolving well-being and taste preferences.

We are particularly keen to work with customers that share our commitment to sustainability, innovation, and health and wellness.

Investors

We are traded on the AIM market of the London Stock Exchange under the ticker symbol: PURE.

Public filings, investor conference calls, an-nual general meetings.

Investors want a good return on their invest-ment, a clear trajectory for continued growth, and good governance.

We seek investors who see the potential that stevia has to transform the food indus-try and provide social and environmental benefits.

Public Interest Groups

We are involved with trade associations and we regularly participate in food and bever-age sustainability conferences and working groups.

Trade associations, working groups, so-cial media, individual meetings.

Non-profit and advo-cacy organizations are primarily concerned that we act responsibly on social and environ-mental issues.

We prioritize engage-ment with groups that are solution-oriented and have a strong grounding in credible science and local context.

03

Materiality

PureCircle is involved in every stage of the stevia supply chain: breeding, cultivating and harvesting stevia leaf, extracting and purifying the

glycosides and create great tasting, zero calorie sweeteners and flavors. Our integrated supply chain not only enables us to ensure a reliable

source of stevia leaf and a safe, high quality product, but it also allows us to provide our customers a level of transparency and accountability

across all sourcing regions that is unmatched by any other stevia manufacturer.

Plant Breeding Breeding proprietary stevia varieties with higher sweet glycoside content

HarvestingWorking directly with local farmers across four continents

ExtractionProducing our own extract to ensure quality standards are met

PurificationPurifying steviol glycosides with an unmatched scale and consistency

ApplicationProviding formulation expertise to deliver great tasting products

Finished ProductSupporting consumer communications with the Stevia PureCircle Trustmark equity.

Value Chain

We strive to optimize stevia yield in all aspects of our operations. Our

unique extraction and purification processes allow us to make use of

each glycoside. We extract up to 95% of the targeted glycosides from

the leaf and convert them into a range of high quality final products.

We are committed to measuring and reporting on our key environmental

impacts and social benefits along the entire supply chain. We completed

our first carbon and water footprint in 2011 and have updated our

calculations each year, spanning farm to extraction, purification and

distribution. In addition, we have assessed water impacts of stevia as

a crop in various growing regions, implemented the stevia industry’s

most robust sustainable agriculture policies, and continue to modify our

practices to mitigate environmental impact across our supply chain. The

results of these efforts can be found throughout this report.

04Materiality

How We Determine Materiality

In early 2014, we undertook a materiality assessment to identify and prioritize sustainability issues for the company. While we had many

policies and initiatives already underway—including ambitious goals for energy, waste, water, traceability, and supplier engagement—we

realized that we had not yet formally assessed what issues mattered most to us and to our stakeholders. For this process, we engaged a

sustainability strategy consulting firm to help us review key social and environmental topics. We looked at the following:

The below matrix is the result of our materiality assessment, which attempts to quantify the relative importance of key sustainability issues.

We recognize that sustainability is a dynamic landscape and expect to update this analysis on an annual basis to keep up with emerging

trends and changing expectations.

The results of the materiality assessment were also used to guide the development of this sustainability report. While we have addressed every

issue on the chart, we have chosen to provide more detailed information about the issues in the top right quadrant—those identified as being

most important to both PureCircle and our stakeholders.

HEALTH AND SAFETY

PRODUCT LIFE CYCLE

SUPPLIER ENGAGEMENT

NUTRITION

FOOD SAFETYCOMPLIANCE

FOOD SECURITY

LABOR RIGHTS

SUSTAINABILITY AGRICULTURE

PESTICIDES

CLIMATE CHANGES

ENERGY COMPLIANCE

LABELING

MIGRANT LABOR

PACKAGING

GENETIC ENGINEERING

PHILANTHROPY

WASTE

BIODIVERSITY

TRANSPORTATION

WATER

PRIVACY

IMPORTANCE FOR PURECIRCLE

IMPO

RTAN

CE F

OR S

TAKE

HOLD

ERS

• Number of times that this issue arises in our product life cycle. For example, product traceability is an issue at every stage of stevia production.

• Number and type of stakeholders most likely to be affected by the issue. For example, the small-scale farmers who grow our stevia are highly impacted by our sustainability decisions.

• The importance of the issue to PureCircle’s business success.

ABOUT PURECIRCLE

06

Company Basics

PureCircle is the world’s leading producer of high purity stevia—a natural, no calorie

sweetener that provides a great tasting way to reduce calories. Stevia is the perfect

sustainable sweetener to help meet consumers’ growing demand for natural and

healthy food and beverage products.

We are leading the global expansion of stevia as a mainstream natural sweetener

that is grown, processed and delivered in a way that respects people and the planet.

PureCircle’s stevia is not just a no-calorie sweetener, but also a more sustainable one

that integrates environmental and social responsibility throughout our supply chain.

From improving the livelihoods and skill sets of small-scale farmers to minimizing our

carbon and water footprints at our facilities, sustainability is part of who we are and

how we operate.

Our Vision and Mission

It is our vision to lead the global expansion of stevia as the next mass volume natural

sweetener and encourage healthier diets through the supply of natural, zero calorie

ingredients to the global food and beverage industry. PureCircle is committed to this vision

and has deeply invested in all aspects of stevia from farming, extraction and purification

to R&D, innovation, application support, consumer communication and advocacy. It is our

mission to scale stevia as the next natural mainstream sustainable sweetener.

Our Economic Impacts

Additional information about our economic impacts and performance can be found on

the London Stock Exchange website and in our annual reports.

2013 Product Highlights

Since 2011, we have launched 4 new products and grown our innovation pipeline to over 20+ new products to address customer application needs.

We sold stevia products to more than 300 customers around the world, a dramatic increase in our customer base.

Location of Operations in 2013

2013 Sustainability Highlights

• PureCircle offers farmers in Paraguay opportunity to improve income

• PureCircle is a finalist for Fi Europe Excellence Awards Sustainability Initiative of the Year

• PureCircle announces ambitious 2020 sustainability goals

• PureCircle helps cut 1.8 trillion calories from global diet

07

Governance & Compliance

Anti-Corruption

Employees are guided by our gifts and entertainment policy, which is structured to set

clear expectations about legal and ethical business practices. To date, we have had no

reported instances of non-compliance on this issue.

Political Contributions, Lobbying, and Public Policy

Typically, PureCircle does not engage in any direct support for political issues, parties,

or candidates. However, in 2014, we donated $2,000 for the “Chicago for Rahm

Emanuel” mayoral campaign. While we do not have a formal policy on these issues, it

is something we are considering for the future.

Grievance Mechanisms

Employees are guided by our Employee Code of Conduct and Employee Handbook,

which provides detailed information about whistle-blowing and grievance processes.

Non-Compliance

To date, PureCircle has not been subject to any formal allegations, complaints,

lawsuits, or other findings of noncompliance with environmental, community, product,

or governance issues. In 2013, we had two labor-related grievances; both were

investigated and resolved.

For More Information

Detailed information on our corporate governance policies and practices can be found on our Investors Page, including:

• Board of Directors Biographies

• Board Responsibilities and Committees

• Capital Structure and Locations

• Significant Shareholders

• Shareholder Rights

• Listings and Platforms

• Restrictions on Transfer

• Investor Events

In our 2013 Annual Report, detailed corporate governance information can be found on pages 28 through 37, including:

• Board committee’s roles and 2013 meeting attendance

• Executive Directors’ remuneration packages

• Directors’ report

08

Sustainability Management

We are committed to strengthening our sustainability programs as we grow and

expand our offerings and market position. We believe the following five pillars make

PureCircle’s stevia the sustainable sweetener for the 21st century:

Promote Healthy ChoicesWe inspire healthier diets around the world.

Source ResponsiblyWe work directly with tens of thousands of local farmers to ensure a reliable supply of ethically and sustainability sourced stevia that positively contributes to the livelihood of farmers.

Reduce Our Environmental FootprintWe have implemented measures to conserve water, reduce greenhouse gas emissions and minimize waste at our extraction and processing facilities. Currently, our top priority is to continue assessments of the carbon and water footprints of our products and our facilities to help us pinpoint strategic opportunities to further reduce energy and water use.

Deliver Transparency and AccountabilityOur direct management of the supply chain enables us to provide traceability back to the community of origin and measure our environmental footprints.

Provide Industry LeadershipWe are leading the way in developing improved stevia varieties and elevating

knowledge and expertise across the industry.

External Auditing and Oversight

We are active members of Sedex, and our extraction and purification facilities are

regularly audited against the Sedex Members Ethical Trade Audit (SMETA) framework,

which includes:

• Labor Standards• Health and Safety• Environmental Practices• Business Practices

The auditors tour the factory, interview workers individually and in groups, and review

documentation. At the end of each audit, PureCircle receives a copy of the audit findings.

When the report documents areas of concern, we are able to quickly develop corrective

action plans and get to the root of the issue so that it does not happen again.

Learn More

Interview and podcast with PureCircle’s Global Director of Sustainability.

PureCircle CEO discusses sustainability at the Responsible Business Summit.

09

Membership & Associations

PureCircle leads the global expansion of stevia as a mainstream natural sweetener. We have been conducting research and development

aimed at increasing the plant yield through selective breeding of high yield varieties, improved plant propagation techniques and production

practices. We are involved in a number of associations—ranging from memberships to joint programs. Below, we explain a few of our most

important partners.

Memberships and Associations

Global SteviaInstitute

PureCircle was the driving force behind the Global Stevia Institute (GSI) whose mission is to provide leadership in stevia education and support other industry educational initiatives. The GSI Advisory Board is comprised of internationally recognized professionals and represents nutritionists, medical doctors and health educators to ensure that stevia information is accurate and credible.

Michigan StateUniversity

PureCircle has teamed up with MSU, one of the world’s premier horticulture research institutions, to further re-search stevia plant breeding. The goal of the research is to accelerate the creation of proprietary varieties of stevia that contain dramatically higher levels of sweetness in the leaf, as well as other improved agricultural properties. This new research and varietal development are focused on the next generation of steviol glycosides. The joint breeding efforts between PureCircle and MSU leverage the most modern science for natural, conventional stevia plant breeding.

S&W Seed ofCalifornia

PureCircle’s partnership with S&W, experts in breeding and developing proprietary seed varieties and efficient harvesting mechanization, is another example of the company’s leadership within the industry. S&W partners with MSU by testing new seed varieties in the field to assess the viability of large-scale production.

International Stevia Council

PureCircle is a member of the International Stevia Council, a global trade association, whose vision is to be the authoritative voice for the stevia industry in promoting the use of naturally-sourced stevia sweetened products.

ENVIRONMENTALIMPACTS

11

Environmental Management

We are committed to reducing our environmental footprint by focusing efforts on the highest sources of carbon emissions, pursuing energy

conservation opportunities, and continuing to adopt sustainable agricultural policies across our diversifying agricultural base. We recognize

that our environmental activities must span our entire value chain, which is why we have identified key activities at each stage of the product

life cycle.

1) Farming• Continued R&D investment to improve leaf yield output and quality.

• Conduct research and field trials to determine the optimal amount of agricultural inputs including inorganic fertilizers, the main sources of emission in each region.

• Partner with our farmers to optimize the efficiency of all irrigation systems.

• Actively support our farmer partners by facilitating equitable and flexible financing, providing quality seedlings/cuttings and inputs, and offering training and agronomic expertise.

2) Extraction • To achieve our objectives, our focus will be on accelerating adoption and demand of

PureCircle stevia. As demand increases, our capacity utilization and fixed emissions allocated over a larger volume will help us drive down intensity of emissions and energy.

• During the extraction process, heat is required for boilers to facilitate extraction of glycosides from leaves steeped in water. Along with electricity needed for equipment, the boiler plant is the biggest source of GHG. We are identifying ways to capture heat to reduce the need for energy.

• In the next few years, we plan to implement a smart mechanism that will measure electricity consumption of our equipment in order to further drive down consumption from inefficient equipment and/or processes.

• We will continue to invest in water and energy efficiency technologies like our continuous backflow extraction technology that helped us decrease our water use by 33%.

3) Purification • We are in the process of installing a new energy management system based on ISO

5000 standards, in partnership with the United Nations Industrial Development Organization (UNIDO).

• We are aggressively moving towards zero waste. In 2012, we installed a new waste water treatment plant at our purification facility that will bring all effluents to the highest local standards. With this process, we expect that all the water from purification will be treated before it is released.

• We are also moving aggressively to reduce landfill waste and plan to have zero untreated waste sent to landfills by 2014.

12Environmental Management

Environmental Policy

PureCircle is committed to environmental compliance and conducive facilities for our employees, contractors as well as to the general public

who are affected by our business operations. Senior management shall ensure PureCircle business strategies and operations are aligned with

environmental policy and commit to:

• Conduct operations in accordance with all applicable laws, regulations, and other requirements.

• Anticipate environmental issues as far as practicable and promote appropriate initiatives that support this policy.

• Strive for an incident-free workplace through a high level of employees’ participation and an effective environmental program.

• Eliminate or minimize the harmful environmental impacts to our facilities and the communities in which we operate.

• Continuously improve environmental performances by utilizing practices that protect facilities and the communities.

• Strive for pollution prevention, energy conservation and efficient utilization of resources.

• Provide appropriate environmental related training and motivate employees to conduct their activities in a environmentally responsible manner.

• Review environmental performances, including setting and reviewing of environmental objectives and targets used to promote continuous improvement, on a periodic basis.

13

Energy Management

We are very cognizant of our energy use—both from an environmental and a financial

perspective and we continuously seek out ways to maximize our energy efficiency.

As a part of our 2020 sustainability goals, we want to reduce energy intensity across

the product life cycle by 20% (against the 2011 baseline). By the end of 2013, we

have already exceeded this goal by reducing energy intensity by 42%.

Our most ambitious energy management project to date involved converting bio waste

to energy. In 2012, we began construction on a new biogas facility, which would

convert stevia leaf residue from our China processing facilities into energy. Initial

projections had indicated that when the facility was fully operational, it would convert

up to 31,000 metric tons of leaves residue into approximately 6 million Kwh of energy

each year. Unfortunately, a dispute between the biogas company and local utility

companies has kept the plant from opening. In the meantime, we are making good use

of bio waste by converting it into organic fertilizer for our farmers.

Other energy conservation initiatives include process improvements, optimizing

machine efficiency and eliminating energy waste.

This chart provides a summary of our key energy use over the last three years. It calculated facility-specific data for our extraction plant in China and our purification plant in Malaysia. We do not currently track energy use at our support facilities, such as our corporate offices or sales offices.

We do track energy use at our farms, but do not disclose farm-specific energy use.

Our biogas facility, currently pending final approval by local authorities.

Energy Consumption Within the Organization (Scope 1 and 2)

Units 2011 2012 2013

Coal Tons 8,459 7,352 12,530

Diesel Liters 1,953,583 1,370,968 1,452,007

Electricity KWH 15,212,707 11,267,876 18,210,538

14

Climate Change

We conduct an annual greenhouse gas (GHG) inventory that covers our entire supply

chain—from farm to distribution. This process helps us spot trends in energy use and

identify areas to focus our carbon-reduction activities. In 2013, we were responsible

for 68,722 metric tons of greenhouse gas emissions.

In 2012, we set an ambitious goal to reduce the intensity of our carbon emissions

by 20% on a sweetness equivalence by 2020 based on our 2011 baseline numbers.

We are on schedule: by the end of 2013, we had reduced the carbon footprint of our

product by 4%.

Note: While our farms are technically considered Scope 3 (upstream emissions), we

are considering farm-related emissions to be under PureCircle’s direct control because

of our extensive oversight. We have therefore included farm-related emissions in our

Scope 1 and Scope 2 emissions as if we owned the operations.

Climate-Related Risks and Opportunities

We report annually to the Carbon Disclosure Project about our GHG emissions and our approach to climate change. For more detailed information about our assessment of climate risk and opportunities, see our most recent CDP report.

GHG Data Sources

Stage of Supply Chain GHG Emissions Calculated

FarmingGHG associated with the manufacture of all materials used on-farm (fertilizers, pesticides and herbicides), energy consumption on-farm and N2O emission from fertilizer application.

MaterialsGHG emissions associated with the manufacture of materials used in the extraction and purifi-cation facilities (excluding stevia leaf, which is accounted for under farming).

TransportGHG emissions arising from the transportation of all materials to both manufacturing facilities (in-cluding transportation of leaf to the extraction facility and stevia extract to the purification facility).

ProcessingGHG emissions arising from energy consumption, water consumption, refrigerant gas loss and waste disposal at the extraction and purification facilities.

Packaging GHG emissions associated with the manufacturing of packaging materials.

Distribution GHG emissions arising from the transportation of the product to the destination country.

15Climate Change

Supply Chain (Scope 3) Emissions tCo2-e

Facility 2011 2012 2013

Farms 6,938 2,360 6,285

Extraction 12,336 6,161 15,109

Purification 2,597 2,062 3,631

Final Distribution

124 161 146

Total 21,996 10,743 25,172

Indirect (Scope 2) Emissions tCo2-e

Facility 2011 2012 2013

Farms 45 57 207

Extraction 6,591 3,755 7,703

Purification 4,600 4,300 5,935

Total 11,236 8,112 13,846

Direct (Scope 1) Emissions tCo2-e

Facility 2011 2012 2013

Farms 5,264 2,618 6,882

Extraction 12,595 10,914 19,016

Purification 5,080 3,703 3,866

Total 22,938 17,236 29,764‘000 tC02 -eAnnual Carbon Footprint Farm-to-Gate

2013 Carbon Footprint

16

Water Conservation & Efficiency

Even though the water footprint of PureCircle high purity stevia products is already lower

than other mainstream natural sweeteners, it is PureCircle’s endeavor to continuously

reduce water impacts across its supply chain from farm to extraction and purification.

It is our policy to comply with all applicable water withdrawal and discharge laws

including obtaining required permits, and to assess water impacts prior to developing

new farming and production regions.

Managing Efficient Irrigation and Crop Residue

When working with our farming partners, we employ the following policies and procedures:

• Management practices should be adopted to ensure that water extraction does not cause adverse effects on groundwater or water bodies.

• Farms should have a water conservation program that ensures the rational use of water resources and protection of water resources.

• The farm must not deposit any organic or inorganic solids, including domestic or industrial waste, construction debris or rubble, soil and stones from excavations, rubbish from cleaning land, or other materials into natural water bodies.

• To irrigate effectively, the right amount of water has to reach the right place at the right time. Irrigation water can be optimized by using more efficient irrigation systems or by improving the scheduling of irrigation.

• Producers should use sprinkler and micro-irrigation systems over gravity systems whenever possible.

• Farmers should rely on rainwater to the extent possible. Supplemental irrigation should only be scheduled as needed. Use of soil or plant measurement systems to assess the need for supplemental irrigation is recommended.

• Crop residue management conserves some of the remains of a previous crop on a field and helps reduce soil erosion, captures and retains rainwater, and reduces runoff. Conservation tillage complements crop residue management efforts and reduces the intensity of soil-disturbing operations. Farmers should implement these practices in tandem to reduce irrigation needs, soil erosion, and runoff.

• Irrigation systems should be inspected on a regular basis. Any leaks should be repaired as soon as practical.

Benefit of PureCircle’s patented extraction system

Typical water consumption for every metric ton of leaf with traditional extraction technology is around 20 metric tons (20:1).

PureCircle’s patented backflow extraction technology uses only 7-8 metric tons of water for every metric ton of leaves (7-8:1). The estimated savings or water use is almost a third of traditional extraction methods.

In 2012, PureCircle completed the industry first farm-to-gate water footprint. The results showed that the footprint is up to 96% lower than that of traditional mainstream natural sweeteners.

17Water Conservation & Efficiency

Protecting Water Rights

We have instituted policies to protect water rights and reduce impacts. Prior to

developing a new region for stevia crop or high purity stevia production, an assessment

of the water rights and resources within the area’s watershed is conducted. The

assessment includes consultation with government officials, water or watershed

experts and local stakeholders, mapping of proposed site, list and location of receiving

bodies of water, legal and cultural water rights within the watershed, required permit,

and description of recommended precautionary measures and practices. If any water

related concerns are identified on or adjacent to the new planting areas:

• Recommended measures and practices are integrated into the development and operation plans.

• PureCircle employees and contractors are trained on the precautions that should be taken during site development and operations.

• Management ensures that any legal requirements relating to the use or protection of water bodies are met.

In 2013, The Coca Cola Company and PureCircle concluded a comprehensive water footprint sustainability impact study of stevia crop growing around Purecircle’s growing regions in Kenya, Paraguay and China. The findings have been used to understand the water stress and provided additional information about the implications of stevia as part of PureCircle and TCCC’s supply chain. It has enabled both companies to identify hotspots, create best practices, and detect potential improvement areas.

18

Waste & Effluents

PureCircle aims to minimize waste from its operations to the maximum extent possi-

ble. This objective will be achieved by minimizing unnecessary packaging from incom-

ing materials and reusing, recycling, or otherwise diverting waste from landfills.

Waste Minimization Strategies

To the extent possible, we work with suppliers and shippers to minimize packaging or

use recyclable packaging (e.g. corrugate) on incoming materials. Shipping pallets are

reused when possible.

We are in the process of setting up recycling programs at all of our facilities. Where

appropriate, we work with waste haulers, recyclers, or service providers to collect and

transport recyclables to a legitimate recycler. Common materials recycled include

corrugate, paper, metal, plastic or glass containers, and ink cartridges.

We divert waste materials from landfills by using service providers that provide composting,

energy recovery, or other processes that use agriculture or other wastes as raw material.

The use of open waste dumps and open-air burning of waste is not permitted.

Wastewater Management

We operate our own wastewater treatment facilities to ensure the effluent meets

international standards to preserve the quality of the receiving water bodies. In

addition, we will soon install a reverse osmosis system to purify our wastewater,

recycling an estimated 45% of water used at our China facility. Together, these system

upgrades will result in a total annual water savings of more than 500,000 liters.

Organic Waste converted to fertilizer (tCo2-e)

2011 4,343

2012 429

2013 3,502

Waste Generated (tCo2-e)

2011 2012 2013

Landfilled 61 61 80

Recycled 13,010 1,995 10,996

Total 13,071 2,055 11,076

Water Discharged (m3)

Treated to local standard

2011 214,738,040

2012 50,170,560

2013 218,791,647

Focus on Green Waste

It is PureCircle’s endeavor to reduce waste in all parts of our supply chain. In 2009, we worked with a third party utility supplier to build a biogas plant on our property. The idea was to convert spent leaf into energy after the requisite glycosides were extracted from the leaf. Due diligence was performed and expectation was to convert energy equivalent to 75% of our extraction plants, energy needs.

However, in 2012, the biogas plant company and the grid utility got into a dispute that has left the plant unoperational for the time being.

In the meantime, we have decided to convert leaf waste into organic fertilizer. Whatever biomass could not be converted to fertilizer was converted to animal feed, maximizing the sustainable value of the entire leaf starting from the farm.

The Waste Generation chart provides a summary of waste generated for our extraction plant in China and our purification plant in Malaysia. The Organic Waste chart reflects green waste that has been captured and transformed into fertilizer from our farms and extraction facilities. We do not currently track waste at our support facilities, such as our corporate offices or sales office.

19

Land Use & Biodiversity

PureCircle supports the protection of land that has high conservation value or is critical habitat for protected species. We do not use stevia

that has been grown on land that has been converted from forestry or conservation land. In Kenya and Paraguay, we encourage farmers to use

pasture-land (as dairy is a less profitable product) or land that is currently used to produce food, respectively.

Stevia is a high value crop that can be grown on small plots of land, eliminating the need to do large scale land clearing. In addition, stevia’s

high yield per acre and strong sweetening potential makes stevia more productive for every acre cultivated.

Approach to Land Rights and Conservation

It is PureCircle’s policy to avoid conversion of high conservation natural ecosystems and to protect riparian areas, wetlands, or other sensitive

habitats and ecosystems. We have procedures in place to ensure land rights are respected and to prevent damaging expansion or new

development into areas of critical biodiversity.

We follow the Forest Stewardship Council’s High Conservation Value Area (HCVA) categories when determining whether land has high biodiversity risk:

• HCVA 1 — Areas containing globally, regionally or nationally significant concentrations of biodiversity values.

• HCVA 2 — Globally, regionally or nationally significant large landscape level areas.

• HCVA 3 — Areas that are in or contain rare, threatened or endangered ecosystems.

• HCVA 4 — Watershed protection or erosion control areas.

Land Assessments

When non-agricultural land is converted to stevia production, proper assessment should be made to identify HCVA and to develop a mitigation

plan to minimize any negative impacts to these areas.

Prior to any conversion of natural habitat to stevia production, an assessment of the land use rights and conservation value should be

undertaken. The assessment should include consultation with government officials, relevant experts and local stakeholders, mapping of

proposed site and adjacent properties, legal ownership and rights of the subject and adjacent lands, description of the conservation values,

impacts of stevia production on these conservation values, and description of recommended precautionary measures and practices, including

buffer zones or otherwise restricted areas.

2013 Farming ImpactsLocation # of farms Hectares under Cultivation Average farm size

Total 17,427 4,750 0.28 Ha

20Land Use & Biodiversity

Land Rights and Water Rights

PureCircle should not develop or otherwise impact land that would violate another entity’s land rights or where dispute of water rights exist.

Management should ensure that any legal requirements relating to the protection of the HCVA are met.

Land Development Prioritization

Areas that contain identified conservation values of global, regional or local importance should not be converted, and the use of areas that

pose the lowest risk to conservation values should be given preference. The location and status of HCVA located in existing plantations or that

could be affected by plantations should be documented and communicated to PureCircle employees and contractors.

Training

PureCircle employees and contractors are trained annually on the location and status of HCVA that exist in the plantation. They also receive

training on appropriate practices to minimize direct or indirect impacts on the HCVA.

Protection of Threatened or Endangered Species and Wild Animals

It is PureCircle’s policy to provide habitat corridors and protection to threatened or endangered plant and animal species found on or adjacent

to our operations. It is also PureCircle’s policy to prohibit the capturing, removing or trafficking of wild animals.

Prior to any conversion of natural habitat to stevia production, an assessment of the animal and plant species should be undertaken. If any

threatened or endangered species are identified on or adjacent to the new planting areas:

• Recommended measures and practices should be integrated into the development and operation plans.

• PureCircle employees and contractors should be trained on the precautions that are necessary during site development and operations.

• Management should ensure that any legal requirements relating to the protection of the threatened or endangered species are met.

• PureCircle employees and contractors should be trained annually on restricted access areas (if applicable) and on appropriate practices to minimize direct or indirect impacts on the species. The training should be documented.

21

Transportation & Logistics

While transportation impacts account for only a small fraction of our overall environmental footprint, we are committed to tracking and minimizing

our logistics impact. We expect that as our operations continue to scale and we ship raw materials and finished goods to several points, we will have

to increasingly focus on enhancing efficiencies by working with our transportation vendors in the future to minimize our impacts.

Transporting Raw Materials and Packaging

Material Discussion

Packaging Materials

We used 169 tons of packaging materials, including paper cartons, plastic bags, foilbags, plastic drums, and plastic pallets.

Raw MaterialsWe used 23,742 metric tons of raw materials, the vast majority of which was stevia leaf. Other raw materials included starch, activated carbon, ethanol, and other processing aid stabilizers.

In 2013, the transportation-related emissions associated with raw materials and packaging was 161 tCO2-e and 7.8tCO2-e, respectively.

Transporting the Finished Product

Transit Mode Discussion

TruckWe use trucks to move our final product from the purification and packaging facility to the nearest seaport for shipping to its final destination.

Sea FreighterWe send our product around the world in shipping containers with distances ranging from 1,700 miles to almost 24,000 miles.

In 2013, emissions associated with the final distribution of our products (from final processing to the country of destination) were 147 tCO2-e.

WORKPLACEIMPACTS

23

Human Capital

Effective management of our workforce is key to our company’s success and a

foundation for good stakeholder relationships. We have extensive policies and programs

in place to ensure that our people understand and are able to meet our expectations

around social and environmental responsibility.

While each location has the freedom to create its own policies, we abide by a common

set of standards that ensure all employees are treated fairly and equitably.

For example, the employee handbook from the Kenya location provides more detailed

examples on specific workplace policies and guidance on topics including:

Recruitment

Orientation, medical examinations, probation and confirmation, promotion, transfer,

working hours, and dress code

Separation

Retirement, retrenchment, termination, and expiration of contracts

Compensation and Benefits

Salary, retirement funds, social security, holidays, vacation and sick leave, maternity

and paternity leave, other leave scenarios, medical benefits, reimbursements, loans,

overtime, and telephone/internet usage

Training and Development

Performance management, job classification, staff development and training, study

leave, higher education, and professional associations

Discipline and Grievance Issues

Grievance resolution, corrective action guidelines, documentation, grounds for

termination, and harassment

Health and Safety

Accidents and incidents, safety gear, and lockers/changing rooms

The PureCircle Kenya location Employee Code of Conduct sets expectations for responsible workplace practices. It recognizes workers’ rights and responsibilities and outlines the company’s disciplinary process in the event of non-compliance. The Code includes provisions on:

• Business practices

• Working conduct

• Conflict of interest

• Gifts and entertainment

• Worker rights

• Personal conduct outside work

• Harassment

• Misuse of company assets

• Drug-free workplace

• Serious illness and disability

• Whistle-blowing

24Human Capital

Management of Labor-Related Grievances

Workers in our processing facilities are allowed and encouraged to report any problems

or concerns to their immediate supervisor, manager or Human Resources department

personnel. In 2013, we had two labor-related grievances filed at our supplier farms

through our grievance mechanism. Both were addressed and resolved.

Third Party Audits

Our facilities are regularly audited by third parties on labor practices and human rights

issues. As with all audits, it is not uncommon to find opportunities for improvement

and we work relentlessly to address issues as they are identified. Fortunately, the issue

of non-conformance when determined by an auditor can often be resolved very quickly

and efficiently. For example:

• In 2013, an audit found that there were insufficient pharmaceutical products in the first aid kit located in the loading department. We added the necessary products to the first aid kit, and the next audit determined that the issue was resolved.

• In 2013, an audit found that emergency contact numbers were not available and posted. We immediately rectified the situation and the next audit deemed the issue closed.

Other findings are more challenging and require that we change a process or system,

or work with another organization. For example:

• In 2013, one of our audits found that several foreign workers, hired through an outsourcing agency, were not receiving complete payslips. We worked with the outsourcing agency to ensure that proper documentation was provided to these workers, and in 2014 the auditor determined that appropriate action had been taken.

We continue to develop processes and systems to ensure that good labor practices are

upheld in every instance, for every worker, in every area of the company.

Focus on Third-Party Audit Interviews

“The management was cooperative throughout the process of the audit. All requested documents were provided in a timely manner, all necessary areas were allowed access for tour and a private room was arranged for employee interviews. In the closing meeting, the management appeared receptive to the audit result and did not raise any negative feedback.” – 3rd party audit of our Chinese operations, July 2013

Issues Identified During 3rd Party Audits

Topic 2013

Management systems and code implementation

1

Employment freely chosen

0

Freedom of association

0

Safety and hygienic conditions

9

Child labor 0

Wages and benefits 8

Working hours 4

Discrimination 0

Regular employment 1

Sub-contacting and homeworking

0

Harsh or inhumane treatment

0

Entitlement to work 0

25Human Capital

Overtime Challenges

At our extraction facility in China, we follow the local laws and regulations on overtime hours. However, some of our customers’ social

standards have a lower threshold for overtime, limiting further the number of hours that a person can work in a given week. We can

meet our customer requirements by adding another shift, but that will negatively impact workers’ salaries by reducing the total num-

bers they are allowed to work—something they have told us they do not want to do. Adding another shift while also increasing salaries

to maintain current payments would dramatically increase our labor costs—something that our customers do not want.

Finding the right balance between meeting customer expectations and worker expectations is an ongoing effort, and we look forward

to further engagement with both groups of stakeholders to better address these issues.

Unionization and Collective Bargaining

Our extraction operations in China are the only area of our company with unionized employees (100% of non-management workers belong to

the union). We have a union committee with seven members that engages regularly on issues related to pay and benefits, working conditions,

and health and safety issues.

26

Labor Practices & Diversity

Workforce by Age

Under30

30 to50

Over50

Asia Pacific Region (APAC)

212 445 47

Europe, Middle East, and Americas (EMEA)

4 19 8

Total 216 464 55

Keeping Women in the Workforce

We offer paid maternity leave for women and encourage them to return to us when they are ready to rejoin the workforce. At our extraction facilities in China, 18 women have taken advantage of parental leave between 2011 and 2014:

• 3 women are currently on leave

• 14 women returned to work after leave (12 of whom were still employed with us a year after their return)

• 1 woman did not return

It is PureCircle’s policy to comply with all labor laws and to promote International

Labor Organization (ILO) Decent Work Core Labor Standards. The core labor standards

are drawn from the most fundamental of the ILO’s labor conventions.

Freedom of association and the right to collective bargaining are respected. The right

to organize and form employers’ and workers’ organizations is the prerequisite for

sound collective bargaining and social dialogue. Sound collective bargaining practices

ensure that employers and workers have an equal voice in negotiations and that the

outcome will be fair and equitable.

No forced labor is permitted. Forced labor is defined as “all work or service that is

exacted from any person under the menace of any penalty and for which the said

person has not offered himself voluntarily.” This includes prison labor, indentured

labor, and bonded labor.

Child labor shall not be used. Processing facility workers should be no less than 15 years

of age (or the legal minimum age if different) and, where laws require, not younger than

the compulsory age to be in school. Farms cannot employ children to the extent that

employment would interfere with the child’s schooling. Moreover, children should not

conduct hazardous work.

No discrimination is practiced. Freedom from discrimination is a fundamental human

right. Workers should not be discriminated against based on their gender, age, race,

religion, or any other characteristics that do not pertain directly to their work performance.

Migrant Labor

At PureCircle, we understand that poor treatment of migrant labor can be an issue

in the agriculture industry, and we are doing our best to make sure that this problem

does not arise at PureCircle. In our own manufacturing operations, migrant workers are

employed at our Chinese extraction facility (15 personnel) and our Malaysian purifi-

cation facility (11 personnel). We make sure that migrant workers receive the same

benefits as the other employees, and are subject to the same rules, responsibilities,

and privileges. In addition, we provide housing and transportation benefits to migrant

workers above and beyond what local employees receive.

Workforce by Region and Gender

Female Male

Asia Pacific Region (APAC)

138 542

Europe, Middle East, and Americas (EMEA)

13 17

Total 151 559

27

Health & Safety

Focus on Health and Safety Committees

Each of our sites has a health and safety committee made up of employer and employee representatives, and chaired by a senior manager at the facility. In our Malaysian processing facility, for example, the committee is headed by the General Manager, with seven employer representatives and eight employee representatives. The committee members come from all areas of the facility, including health, safety, environment and community (HSE&C), sales, loading, quality assurance, maintenance, warehouse operations, engineering, purchasing, logistics, and human resources.

Health and Safety Policy

PureCircle is committed to provide healthy, safe and conducive facilities for our employees,

contractors as well as to the general public who are affected by our business operations.

Senior management shall ensure PureCircle business strategies and operations are

aligned with our health and safety policy and commit to:

• Conduct operations in accordance with all applicable laws, regulations, and other requirements.

• Anticipate health and safety issues as far as practicable and promote appropriate initiatives that support this policy.

• Strive for an incident-free workplace through a high level of employees’ participation and an effective health and safety program.

• Eliminate or minimize the health and safety harmful impacts to our employees, contractors, general public and facilities in which we do businesses.

• Continuously improve health and safety performances by utilizing practicable practices that protect employees, contractors, general public and facilities.

• Provide appropriate health and safety related training and motivate employees to conduct their activities in a healthy, safe and responsible manner.

• Review health, and safety performances, including setting and reviewing of health and safety objectives and targets used to promote continuous improvement, on a periodic basis.

28Health & Safety

Key Safety Concerns

Location Concerns Steps Taken

Farms

At our farms, the key safety concerns are related to the risk of injury in the warehouse when working near the baling machines. The facilities can be dusty and noisy, and the fields can be slippery during wet weather.

We emphasize the use of protective gear for all employees working in potentially risky areas. We have first aid stations at all major operations in the fields, warehouses, and offices. Spot checks are done by department heads to ensure compliance with all health and safety policies and expectations. First aid training is provided to department representatives, and standard operating procedures are in place for all machinery, with training provided as needed.

ExtractionAt the extraction phase, the key safety risks are related to dust and noise.

Employees must wear personal protective equipment when exposed to safety risks. Since early 2013, dust and noise detection are performed and evaluated. We have also taken steps to improve the working environment through upgraded ventilation, better sound insulation and noise reduction measures.

PurificationDuring purification, the key safety concern is related to the use of processing aids.

We carefully monitor safety guidance for all processing aids entering our facility, to ensure that we take appropriate precautions. Employees are trained on safe handling procedures and receive ongoing reinforce-ment to keep safety front of mind. We are regularly audited for health and safety and work quickly to resolve any issues that occur.

Safety Training

Each of our processing facilities has dedicated health and safety managers and support staff. These personnel receive ongoing training and

provide oversight to ensure that appropriate measures are taken on the facility floor to keep workers safe and healthy. At our production facilities,

new employees go through three levels of safety training: company level, workshop level, and team level. This process ensures that each

employee understands the breadth and scope of our commitment to health and safety, but also the very specific safety risks and practices of

his or her job duties. We conduct regular emergency drills to test and improve workforce readiness to respond to safety incidents.

Ongoing Monitoring

Since the beginning of 2013, all workers at our production facilities are required to take an annual occupational health examination, which

helps us to detect and resolve any health and safety concerns efficiently.

Safety Factors

2011 2012 2013

Fatalities 0 0 0

Lost time incidents 13 9 13

Lost time/men days 160 136 531

Near Misses (Incidents with no lost time)

1 1 4

COMMUNITY IMPACTS

30

Philanthropy & Charitable Giving

While our primary focus is on strategic investment in our farming communities, we also support a variety of national and international

charitable programs.

In 2013, we contributed $10,000 to the Coca-Cola Scholars Foundation, a program that awards college financial assistance to exceptional

high school seniors with outstanding academic records and demonstrated service to the community.

PureCircle was a proud member of the Healthy Weight Commitment Foundation in 2013. This foundation helps to reduce obesity, especially

childhood obesity, by inspiring people to become more active and healthy.

Support for Local Communities in Paraguay

PureCircle is a supporter of the Amigos de las Américas (AMIGOS), a program that supports sustainable community development projects and

youth leadership in Paraguay, the home of stevia.

Since 2009, our involvement with AMIGOS has helped the program support 37 rural communities. The projects led to the development of

reforestation and healthy living programs in 5 communities, development of healthier and sanitary living environments in 11 rural communities,

construction of community gardens and support of education activities that benefited 7,500 children and adults across all rural communities.

31

Food Security

It is PureCircle’s policy to avoid competition for local food security. This policy aims to support a household’s ability to provide physical and

economic access to sufficient, safe, and nutritious food in the future. In addition, such households and countries should have access to food

that fulfills the dietary needs and food preferences for living an active and healthy lifestyle.

Our Approach to Food Security

When agricultural land is converted from primary food crops to stevia production, an assessment of the risk of negative impacts on food

security among the farming community should be conducted.

If an instance of the conversion from agricultural land to stevia production is identified as negatively impacting food security, PureCircle

should develop a mitigation plan to minimize any negative impacts to the farmer’s family and the community’s access to adequate amounts of

nutritious food. For example, setting aside land to carry out household-level food production or sponsoring agricultural support programs and

activities could help mitigate the impacts.

The results of the food security assessment and mitigation recommendations should be communicated to PureCircle’s farm workers, farmer

partners, and buyers. Each site should maintain a copy of the food security assessment report as long as the facility is in operation.

PRODUCT IMPACTS

33

Food Safety & Quality

Food Safety Management Systems

We take our product responsibility obligations very seriously. At each stage of the stevia process—from growing the seedlings to harvest,

extraction and purification, to final packaging and delivery—our first and foremost commitment is to quality and safety. We have extensive

production process control mechanisms in place to ensure that we meet international standards of product quality and safety. Our

management systems are extensive and updated regularly, and our facilities are HACCP, ISO9001, ISO22000, Halal and Kosher certified.

Our processes are guided by a Food Safety Procedures Manual and inspected by internal audits biannually and external audits annually.

In addition, Hazard Control Plans have been established to measure the safety and quality of each process, and Critical Control Points are

identified and monitored in order to ensure the product’s quality and safety.

Quality Assurance monitors all regulatory requirements and updates the systems where necessary. Any changes in the systems are subject

to verification and approval, and will be notified to our customers accordingly. Thus far the systems are implemented effectively and recognized by

internal auditors, external auditors and customer spot auditors.

Traceability

It is PureCircle’s policy to trace stevia leaf production from the farming community to the final product. This policy aims to maintain

traceability of all stevia leaf from farming community to extraction facility. Efforts are also made to maintain traceability to final product on a

batch basis.

34Food Safety & Quality

Our Approach to Traceability

In order to ensure our ability to trace stevia leaf production from cradle to gate, we

have instituted the following practices:

• Develop a chain of custody program that establishes documentation requirements and segregation and data transfer practices.

• Track leaf during transit from a farm/village to PureCircle’s extraction facility. Reconfirm weight of leaf upon delivery to PureCircle’s extraction facility.

• Segregate leaf during storage at PureCircle’s extraction facility. Track the leaf and its extract throughout all processes in the extraction and purification facilities.

• Establish a system to document these steps in a credible and audit-able manner.

Appropriate PureCircle employees and contractors are trained annually on traceability

processes and protocols. The trainings are documented, along with leaf and extract

transport, transaction, and inventory documents.

Genetic Modification

The key sweetening agents in the stevia leaf are steviol glycosides, which can be 300

times sweeter than sugar. The extraction of high purity glycosides from stevia leaf is

a natural water-based process and does not in any way alter the product that nature

has provided in the leaf of the plant. No genetically modified plants are used in the

production of PureCircle’s range of sweeteners or flavors.

Our Approach to GMOs

It is PureCircle’s policy to avoid the use of transgenic materials in our stevia crops and

to prevent accidental introduction of any transgenic materials at the farm. If transgenic

seed or seedlings are being used in nearby farms, we take the following steps:

• Selection of growing area is to be done based on careful evaluation to prevent accidental introduction of transgenic materials.

• Cooperate with neighbors and regulatory or conservation authorities to ensure stevia is not grown adjacent to any non- GMO crops if possible.

• In case of identification of any GMO crops in region that cannot prevent harmful introductions, identify immediate steps to migrate out of region if possible and prevent any mixing.

PureCircle employees and contractors/farmers are trained annually on the migration

risks and risk minimization plan, with documentation of training records and a Biosafety

Clearinghouse as established under the Cartagena Protocol on Biosafety (as applicable).

Focus on Product Innovation

In the 2013 year, we greatly expanded our lab infrastructure in the United States, China and the UK. It has enabled us to expand our execution of PureCircle stevia 3.0™ which offers tailored sweetening solutions blended to fit any application. Rather than providing ‘one-size-fits all’ stevia sweetening, we have learned that to get the best stevia-sweetened product, a blended approach can be the answer. Knowing the particular stevia ingredients that work best in specific food and beverage matrices, allows our product developers achieve deeper calorie reductions with better taste profiles than ever before.

We are delivering this new approach through an extensive side by side development program with our customers called PureCircle University. In 2013 we held over 70 PureCircle University programs around the world, partnering with our customers to develop the right concepts and formulations to bring to market.

35

Health & Nutrition

With obesity and diabetes growing at alarming rates globally, consumers are looking

to reduce calories and sugar in their foods. Consumers are also looking to eat more

natural foods. In the past, it has been extremely difficult to create a product that

caters to both of these consumer needs without compromising taste.

A fundamental part of PureCircle’s mission is to encourage healthier diets around the

world through the supply of natural, healthy, zero calorie sweetening ingredients to the

global food and beverage industry. Stevia is a safe way to produce high-quality, low-

calorie food and beverages without sacrificing the joy of sweet.

Caloric Impact

Since high purity stevia sweeteners are metabolized by the human body in a way that

has almost no caloric impact, even partial replacement of caloric sweeteners with

stevia can have a significant caloric reduction benefit.

Since we started monitoring in 2006, we have supplied enough stevia to help the

industry achieve a reduction of approximately two trillion calories in food and beverage

products. In 2013 alone, we supplied enough stevia to enable a reduction of 500

billion calories from global diets.

The pace at which we are helping the food and beverage industry moderate calories is

increasing at a significantly faster rate than we anticipated. As a result, we now have

the capability to help the food and beverage industry reduce up to two trillion calories

per year. This positions us well to achieve our cumulative calorie footprint reduction

goal by 2020.

Did you know?

Sugar contributes up to 55% of the non-packaging GHG impact of a carbonated soft drink in Europe and up to 32% in the United States. A 30% reduced calorie drink sweetened with PureCircle stevia can help achieve a 22% reduction of the GHG from added sugars.

If the entire carbonated soft drink market replaced 15% of its added sugar with PureCircle stevia, we could save 616,000 metric tons of greenhouse gases each year. But that's not all—it would also save 730 billion liters of water.

36

Product Life Cycle Impacts

1,410

785

1,410

968

1,258

othe

r Ste

via

estim

ated

Stevia is a natural, no-calorie sweetener that provides a great tasting, mainstream replacement for caloric sweeteners. The key sweetening

agents in the stevia leaf are steviol glycosides, which can be 200 to 350 times sweeter than sugar and have the potential to greatly lower

environmental impacts of food and beverage products.

PureCircle is pioneering the next generation of stevia with its improved taste profiles, greater customer acceptance, and positive environmental and

social ecosystem impacts, which will allow stevia to be the sustainable mass scale sweetener of choice in the 21st Century. Did

KgCo2-e/kg SE*Comparative Carbon Footprints

Liters/kg SE*Comparative Water Footprints

purecircle stevia (2012)

Stevia’s Carbon Footprint

PureCircle stevia has a lower carbon and water footprint than other natural

mainstream sweeteners. In fact, the carbon footprint of PureCircle sweeteners is

estimated to be:

• 60% lower than other stevia sweeteners,

• 55% lower than beet sugar,

• 79% lower than high fructose corn syrup and

• 29% lower than cane sugar

Stevia’s Water Footprint

Not only does PureCircle stevia have a lower carbon footprint than comparative

sweeteners, it also has a lower water footprint:

• 92% lower than beet sugar

• 94% lower than high fructose corn syrup

• 96% lower than cane sugar

What’s Behind Our Claim?

We undertook a product life cycle assessment (LCA) study to better understand

and calculate the energy, water, and carbon footprint of our stevia products in

FY2011. We published the results, including a comparison to industry data on

comparative sweeteners. We conducted a second carbon footprint in 2012 and

our most recent results from 2013 shows improvement from our 2012 data for

energy, water, and carbon footprints.

The study was conducted by independent LCA experts, who used

internationally-recognized standards to conduct the research and make product

category comparisons. The result? We are confident in our claims that our stevia

products are an eco-friendly alternative for consumers to enjoy. Read the full

report here. *Sweetness Equivalence

37

Customer Communications

Communicating about Stevia

Our company has supported the development of the Global Stevia Institute (GSI), the

industry’s leading stevia advocacy body. GSI’s goal is to provide consumers and other

stakeholders with science-based information about the safety, quality, and market for

stevia products.

Communicating about PureCircle

We own or control vast portions of our supply chain from the farm to product delivery.

This vertical integration allows PureCircle to measure and communicate the impact on

ecosystem, environment and consumer health.

We will continue to enhance processes across our integrated supply chain to communicate

our sustainability progress to all our stakeholders including disclosure through:

• Our annual sustainability reporting

• Sedex sustainability audits

• Carbon Disclosure Project (CDP) reporting

Product Labeling

We carefully monitor rules and regulations around product labeling and are in

compliance with all relevant guidance.

Approval of stevia for use as a sweetener in food and beverage products has continued

to expand into new markets around the globe and the stevia PureCircle Trustmark

program has also expanded over the past year. The stevia PureCircle Trustmark

continues to provide a strong base of trust and source of consumer communication

around stevia for PureCircle customers as part of their brand launches.

Harnessing new market insight studies and continued market intelligence, the stevia

PureCircle Trustmark program not only supports customers in communicating key

consumer messages but also helps ensure they understand the correct way to label

stevia and describe it in key markets with specific, local regulatory guidelines.

Privacy and Confidentiality

We do not collect personal information about consumers other than data that is provided to us through social media statistics—such as Facebook “likes”—or information that is voluntarily disclosed by individuals who contact us directly for support or questions.

We do not have a formal data privacy policy, although we do have strict controls on access to customer information within our facilities. To date, we have had no data privacy or

confidentiality complaints.

SUPPLY CHAIN IMPACTS

39

Suppliers Relations

Having an integrated supply chain provides many benefits. It allows us to continually innovate at all stages of our supply chain to ensure

we bring the best tasting stevia extracts to consumers. And it helps us drive down inefficiencies, reduce our overall environmental impacts,

enhance benefits to the wider socioeconomic system and maximize our potential benefits to public health.

Good Labor Practices in the Supply Chain

PureCircle recognizes the challenges involved in detecting and correcting violations of applicable laws and labor standards where the

company does not have direct control, especially in a small holder farm setting. We also recognize that we have an obligation to address any

issues that may arise and that steps can be taken to promote lawful and ethical labor conditions.

To this end, on an annual basis, PureCircle field teams should clearly communicate PureCircle’s policy and procedures to all PureCircle

employees, contractors, and suppliers. This communication should include adequate description of decent work standards, labor laws, and

the process for reporting confirmed or suspected violations.

Buyers who purchase stevia leaf from producers should convey PureCircle’s policy to the producers. Any confirmed or suspected violations

of these procedures should be reported to an HR Manager as soon as practical. All reported violations shall be investigated, and corrective

actions taken, as appropriate.

Focus on Women

We recognize the powerful impact that we can have by working with women entrepreneurs, business owners, and farmers. That’s why we place

priority on cultivating relationship with woman-owned suppliers. Most of the independent small holding farmers that we work with are family

run with both women and men contributing equally.

% of Female Farmers estimated in 2013

% of Women Women in #’s

China 45 6,615

Kenya 60 1,202

Paragauy 50 700

40Suppliers Relations

41

Working with Farmers

Helping farmers become more successful by increasing yields and incomes is at the core of our business strategy. Close to 18,000 farmers

across four continents were part of our supply chain in 2013. We place great importance on working very closely with them to ensure their

success. This focus ranges from providing them quality seedling or cuttings, as well as materials and agronomic know-how to successfully cul-

tivate stevia plants. We also, in many regions, guarantee incomes for farmers at the end of season to help them continue to invest and grow

stevia successfully. Because we work so closely with individual farmers, we understand the need for financing and support them with access

to quality materials, resources and micro financing. We support farmers’ ability to remain food self-sufficient and, thus, encourage them to

limit stevia production to a third of their land area.

In China

We are pioneering a unique program in which we provide close to RMB 22 Million

(US$3.2 million) through building of free nursery greenhouses, free cuttings, training

to co-operatives and a guaranteed minimum price to protect farmers’ interests.

In Kenya

We promote the self-reliance of farmers by providing them with their first stevia

cuttings and training on how to breed and grow seedlings to meet their future needs.

Over 300 farmer-owned nurseries have been so successful that they now sell seedlings

to other farmers.

In Paraguay

We operate two major nurseries and provide all seedlings to the farmers—at

discounted rates to be paid after their crop is harvested. PureCircle’s investment in

the nurseries, and continued interaction with the local farmers, provides the farmers

assurance that we are investing in—and committed to—a local stevia supply.

42Working With Farmers

Increasing Incomes and Reducing Erosion in Kenya Through Micro-Dams

Many rural regions suffer from heavy rains that cause soil erosion. Our Kenya team has trained farmers to build micro-dams by digging small structures that slow water movement at the areas prone to erosion. These micro-dams help reduce soil erosion and they have been so successful that local farmers are now training other farmers how to build micro-dams, independent of PureCircle’s assistance.

Financing

We work with a micro-financing company in Paraguay to provide farmers access to

loans at discounted rates with flexible payments to accommodate agricultural cycles.

Dozens of individual farmers have started building their own irrigation systems, often

resulting in a 30-40% higher yield of stevia. This is significant considering a family

can increase its income as much as 44% by installing irrigation—and up to 66% when

farmers use higher quality seedlings such as those PureCircle provides.

Our Kenya team has partnered with two micro-finance organizations to facilitate the

recruitment of farmers who meet a minimum set of skills and to establish financing

mechanisms. Through PureCircle’s partnership and guidance, the micro-finance

organizations have developed terms that enable successful repayment, such as a two-

year payback period, low interest rates and a guarantee that the financial organization

does not deduct more than 30% of gross proceeds from any one payment. PureCircle

Kenya has organized just short of $1 million of micro financing where the micro-

finance companies provide the loans for 2,200 farmers.

Farmer Health and Safety

It is PureCircle’s policy to promote the use of personal protective equipment when

applying processing aids. PureCircle also encourages the proper use, storage, and

disposal of processing aids. Potable water and hand washing facilities should also be

made available. This policy aims to protect farmer partners and the environment from

overexposure to hazardous processing aids.

Use of pesticides and other processing aids should be avoided or minimized. Only

pesticides that are registered nationally for the crop being treated should be used.

Pesticides that are WHO Class I or listed in the Stockholm Convention or Rotterdam

Convention should not be used. Any exceptions should be phased out, and their use

justified, until they are phased out.

ABOUT THIS REPORT

44

About This Report

This document is PureCircle’s first sustainability report, completed in December 2014. It includes data from across our supply chain and

operations, including farms, processing facilities, and distribution channels. Our most comprehensive data is from our directly owned and

operated extraction and purification plants, where we have aggressively tracked and managed sustainability issues. Robust environmental and

social data is also collected from our 18,000 small-scale farmers. Data is less available (and often based on estimates and assumptions) for

our distribution networks and our administrative offices, where our impacts are less significant. We anticipate improving data coverage in the

coming years, based on each facility’s relative significance to the company’s overall impact.

Please note: the sustainability reporting cycle is aligned with the company’s year for consistency. For example, when the report discusses

information from 2012, the data underlying the statement is actually from July 1, 2011 to June 30, 2012.

Reporting Methodology

We used the Global Reporting Initiative (GRI) G4 Guidelines (and specifically the guidance on reporting principles and boundaries) when

determining what to include in this report.

The report focuses primarily on our farming and processing facilities, which have the most significant social and environmental impact. We

are considering adding additional information about our corporate and sales offices in future years.

External Assurance

We have engaged Strategic Sustainability Consulting (SSC), an independent party to support our sustainability reporting efforts. We believe

that this report contains information that is accurate, timely and balanced. While the report and the data within have not been formally

assured, we have completed an internal assessment process in conjunction with SSC to review the contents for clarity and materiality.

Data Methodology

We use internationally recognized standards for calculating our sustainability impacts. For example:

• Our product life cycle impacts were calculated by an independent third party using the PAS2050 life cycle assessment standard.

• Our corporate greenhouse gas (GHG) emissions were calculated using the GHG Protocol Corporate Standard.

• Our employee numbers and labor-related indicators, as well as selected environmental practices, have been assessed and reviewed by

independent third-party auditors under the Sedex SMETA 4-Pillar Audit.

Opportunity for Feedback

We welcome your feedback on this report. Please contact Ajay Chandran, PureCircle’s Corporate Sustainability Director, at

ajay.chandran@purecircle.com or at 1.630.824.3641.

General Standard Disclosures

Strategy and Analysis

Foreword from the CEO. i

Key sustainability risks, opportunities and impacts. 1,2

Organizational Profile

Name of the organization. 6

Primary brands, products and services. 6, 36

Location of the organization’s headquarters. 7

Number of countries where the organization operates. 6

Nature of ownership. 7

Markets served. 6

Scale of the organization. 6

Total workforce. 26

Bargaining agreements. 25

Organization’s supply chain. i

Support for external initiatives. 17, 30

Memberships in associations/interest groups. 9

Identified Material Aspects and Boundaries

Entities included in the report. 3

Definition of report content and boundaries. 4

Material aspects. 4

Material aspects and report boundaries within the organization. 4

Material aspects and report boundaries outside the organization. 4

Stakeholder Engagement

Stakeholders engaged by the organization. 2

Identification and selection of stakeholder groups. 2

Engagement of stakeholder groups. 2

Key topics raised through stakeholder engagement. 2

Report Profile

Reporting period. 44

Date of most recent previous report. 44

Reporting cycle. 44

INDEX

G4-1

G4-2

G4-3

G4-4

G4-5

G4-6

G4-7

G4-8

G4-9

G4-10

G4-11

G4-12

G4-15

G4-16

G4-17

G4-18

G4-19

G4-20

G4-21

G4-24

G4-25

G4-26

G4-27

G4-28

G4-29

G4-30

We have used the Global Reporting Initiative’s G4 Guidelines in the creation of this report. This report contains Standard Disclosures from the GRI Sustainability Reporting Guidelines. Use the chart below to quickly find information contained in the report.

Contact point for questions regarding the report. 44

Reporting option chosen for the report. 44

External assurance. 44

Governance

Governance structure. 7

Responsibility for economic, environmental and social topics. 7

Composition of highest governance body. 7

Function of highest governance body. 7

Nomination and selection processes for highest governance body. 7

Processes for the highest governance body to ensure avoidance of conflict of interests. 7

Highest governance body’s role in development of organization’s strategies related to economic, environmental and social impacts. 7

Highest position that formally reviews and approval of organization’s sustainability report. i

Nature and total number of critical concerns. 7

Remuneration policies. 7

Process for determining remuneration. 7

Ethics and Integrity

Code of Conduct. 7, 23

Internal and external mechanisms for seeking advice on ethical or lawful behavior. 24

Internal and external mechanisms for reporting unethical or unlawful behavior. 24

Specific Standard Disclosures Economic

Economic

Direct economic value generated and distributed. 6

Proportion of spending on local suppliers. 42

Environmental

Materials

11

Materials used.

G4-31

G4-32

G4-33

G4-34

G4-36

G4-38

G4-39

G4-40 G4-41

G4-42

G4-48

G4-50

G4-51

G4-52

G4-56

G4-57

G4-58

G4-EC1

G4-EC9

DMA

G4-EN1

46Index

Energy

Energy consumption within the organization. 13

Energy intensity. 1, 13

Reduction of energy consumption. 11, 13

Reductions in energy requirements of products and services. 36

Water

Total water withdrawal 16

Emissions

Direct GHG emissions (Scope 1). 15

Energy indirect GHG emissions (Scope 2). 15

Other indirect GHG emissions (Scope 3). 15

GHG emission intensity. 16, 36

Reduction of GHG emissions. 15, 36

Effluents and Waste

Total water discharge. 18

Total weight of waste. 18

Products and Services

Extent of impact mitigation of environmental impacts of products and services. 36

Compliance

Significant fines and non-monetary sanctions. 7

Transport

Significant environmental impacts of transporting products for the organization’s operations. 21

Supplier Environmental Assessment

Significant actual and potential negative environmental impacts in the supply chain and actions taken. 42

Environmental Grievance Mechanisms

Total number of grievances about environmental impacts filed through formal grievance mechanisms during the reporting period. 7

Social: Labor Practices and Decent Work

Employment

23

Total number and rate of new employee hires during the reporting period. 26

Benefits provided to full-time employees that are not provided to temporary or part-time employees. 23

Return to work and retention rates after parental leave. 26

Occupational Health & Safety

Type of injury and injury rates, occupational diseases, lost days, and total number of work-related fatalities. 28

Workers with high incidence or high risk of diseases related to their occupation. 28

Health and safety topics covered in formal agreements with trade unions. 25

Training & Education

Programs for skills management and lifelong learning that support the continued employability of employees. 23

Supplier Assessment for Labor Practices

Significant actual and potential negative impacts for labor practices in the supply chain and actions taken. 28, 39

Labor Practices Mechanisms

Total number of grievances about labor practices filed through formal grievance mechanisms during the reporting period. 24

Human Rights

Investment

23

Non-Discrimination

Total number of incidents of discrimination during the reporting period. 7, 24

Freedom of Association and Collective Bargaining

Operations and suppliers in which employee rights to exercise freedom of association or collective bargaining may be violated or at significant risk.

Indigenous Rights

Total number of identified incidents of violations involving the rights of indigenous peoples and actions taken. 7

Supplier Human Rights Assessment

Significant actual and potential negative human rights impacts in the supply chain and actions taken. 35

Human Rights Grievance Mechanisms

Total number of grievances about human rights impacts filed through formal grievance mechanisms. 7

G4-LA2

G4-LA3

G4-LA6

G4-LA7

G4-LA8

G4-LA10

G4-LA15

G4-LA16

DMA

G4-HR3

G4-HR7

G4-HR8

G4-HR11

G4-HR12

G4-EN3

G4-EN5

G4-EN6

G4-EN7

G4-EN8

G4-EN15

G4-EN16

G4-EN17

G4-EN18

G4-EN19

G4-EN22

G4-EN23

G4-EN27

G4-EN29

G4-EN30

G4-EN33

G4-EN34

DMA

G4-LA1

47Index

Society

Local Communities

30

Operations with significant actual and potential negative impacts on local communities. 30

Anti-corruption

Communication and training on anti-corruption policies and procedures. 7

Confirmed incidents of corruption and actions taken. 7

Public Policy

Total value of political contributions by country and recipient/beneficiary. 7

Anti-Competitive Behavior

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. 7

Compliance

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. 7

Supplier Assessment for Impacts on Society

Significant actual and potential negative impacts on society in the supply chain and actions taken. 31

Grievance Mechanisms for Impacts on Society

Number of grievances about impacts on society filed, addressed and resolved through formal grievance mechanisms. 7

Product Responsibility

Customer Health and Safety

33

Percentage of significant product and service categories for which health and safety impacts are assessed for improvement. 35

Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts on products and services during their life cycle. 7

Product and Service Labeling

Type of product and service information required by the organization’s procedures for product service information labeling, and percentage of significant product and service categories subject to such information requirements. 37

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling. 7

Marketing Communications

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship.B151. 7

Customer Privacy

Total number of substantiated complaints received concerning breaches of customer privacy and losses of customer data. 7, 37

Compliance

Total monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. 7

Percentage of production volume manufactured in sites certified by an independent third party. 33

DMA

G4-SO2

G4-SO4

G4-SO5

G4-SO6

G4-SO7

G4-SO8

G4-SO10

G4-SO11

DMA

G4-PR1

G4-PR2

G4-PR3

G4-PR4

G4-PR7

G4-PR8

G4-PR9

FP5