A n n u a l

S h o r t v e r s i o n

Accessthe fu l lver s i o n

S u s t a i n a b i l i t y R e p o r t

SUMMARY

PROFILE

MAIN THEMES

23Innovation

22Market Presence

30Water Management

18Transparency towardsociety

20Managementinitiatives and partnerships

26Supportto rural producers

8AMAGGIin Brazil andabroad

28Social and environmental criteria to assess suppliers

24Impact of activities and local development

32Impact of activities on deforestation

17Training andDevelopment

14Governance

10Certifications

12Materiality

62015Highlights

4 54

foster good business relations, remaining faithful to the commitment of being a company admired and respected by all

8. Respect for our Partners

retain creative, participative, bold, talented, and enthusiastic people who can make a difference in the competitive market.

7. Innovation and Entrepreneurship

to encourage participation by promoting recognition and professional growth, involving people in key company processes

5. Participatory Management

“Fly the Flag” Word with passion and pride and strive for the company’s success6. Commitment

to show respect for people, maintaining common sense in professional and personal relationships4. Humility

focus on the essential, encouraging agility and less bureaucracy3. Simplicity

to be ethical, fair, and consistent with our thoughts, words, and actions1. Integrity

to be a reference in social and environmental management2. Respect for the Environment

VALUES

VISION

MISSION

Waldemir Ival LotoCEO at AMAGGI

To be a reference in sustainable development.

To contribute to the development of agribusiness, by adding value, respecting the environment and improving life in the communities.

Hi,

I would like to invite all of you to learn about our Annual Sustainabi-

lity Report, which contains all our achievements and shows how we

overcame challenges throughout 2015. The document was produced

relying on the involvement of all company areas in order to advance in

sustainability management through an integrated process.

The aspects covered in this report in short, were identified through a

process that includes consultations with our main stakeholders. To

know more about it, access the full report on: www.amaggi.com.br/

relatorio2015.

Our Global Stance on Sustainability is based on the Corporate Prin-

ciples for Food and Agriculture, of UN’s Global Compact, and on the

engagement of stakeholders, which to us, represents a critical and

continuous process.

With clearly defined goals and objectives, we work to achieve an incre-

asingly more global cooperation, with transparency and sustainability.

To this end, the participation of all our employees, suppliers, institutio-

nal partners, and communities where we operate, is instrumental.

Enjoy your reading!

6 77

AGRO

1.720.500

3 unidadessoybean crushing units:Lucas do Rio Verde (MT),

Itacoatiara (AM) andFredrikstad, In Norway

5 officesand representatives in

Argentina, Holland,Switzerland, Paraguay

and China

storage capacity in million tons

8.044million tons of grainoriginated in 2015

551.000tons of grain

storage capacity517.431tons of soybean

395.777tons of corn

132.719tons of cotton

2015 Agricultural Production

4.848 employees and755 third-party contractors

COMMODITIES

Inclusion Program for people withdisabilities and adaptation of42 professionals as well as trainingon the subject with 1393 employees

US$ 3,8 billionAnnual Income

6 farms

162bulk carrierbarges

3underconstruction

17fluvial pushersoperating

*The increase in volume transported is due to the increase in the fleet and the start of the Portochuelo operations, in Porto Velho (RO)

415.000

2,8

tons of storagecapacity in the ports

2013 2,72014 3,52015

5small hydroelectricplants (SHEPs), locatedin the state of MT

3,5million tonsof grainstransported

90bulk carrierbarges

2underconstruction

3fluvial pushersoperating

1,5milhões detoneladasde grãostransportados

70 MWof power installed approximately

Completion of the SHPs’ automation system.Today, all SHPs can be controlled remotely;the Operational Center is located at the Sapezal offices

18municipalities wherethe Foundation acts

30.000directly impactedpeople

R$ 3.2million2015’s investment

Madeira Corridor Tapajós Corridor

NAVIGATION

Volume of grains transported in 2013 – 2015

ENERGY

ANDRÉ E LUCIA MAGGI FOUNDATION

2015 HIGHLIGHTS

8 9

São Félix do Araguaia

Rio Grande Port

São Francisco Port

Paranaguá Port

TGG Port

Itaqui Grain Terminal

Vila do Conde Port

Santana Port

Tapajós River

ItacoatiaraPort

Madeira

River

PARAGUAY

BRAZIL

SWITZERLAND

NORWAY

THE NETHERLANDS

RAILWAY

warehouses port SHEP farm office jointventure

headquarter industry

WATERWAY HIGHWAY

AMAGGI in Braziland abroad

10 1110

ImprovingGovernance and

Management

Debatingpresent and

future

Growingtogether withthe location

SustainableValue Chain

Sustainability PlanVision 2025

With the strengthening of AMAGGI’s international

performance came the need to reinforce the com-

pany’s commitment to sustainability, contemplating

global challenges.

The defining of priority issues emerged from studies

and surveys, the main ones being:

• Food and Agriculture Business Principles

of the UN Global Compact;

• Materiality Matrix developed in 2014, with

consultations with various stakeholders;

GLOBAL STANCE ON SUSTAINABILITY

2025 VISION To integrate all business areas strategies for the next ten years AMAGGI

incorporated the Global Stance on Sustainability, or 2025 Vision. The the-

mes of the Global Stance and 2025 Vision were divided into blocks called

strategic groups.

• Survey of priority issues with direct

and indirect customers, who make up

the value chain;

• Work carried out with senior mana-

gement of the company to identify

strategic sustainability points for the

coming years;

• And other literature on sustainabili-

ty issues that are under discussion or

are treated as key issues for agribusi-

ness.

Certifications are tools used by AMAGGI to certify their com-

mitment to responsible production, ensuring compliance

with environmental and quality criteria in all internal proces-

ses and in the production chain.

CERTIFICATIONS

In 2015, AMAGGI sold around 883,000 tons of RTRS certified soy.

Trading RTRS credits rose 37% and soybean sales grew 290%. This

year, AMAGGI accounted for 87% of all certified physical RTRS soy

trading in the world.

SOCIO-ENVIRONMENTAL CERTIFICATIONS

PRODUCT QUALITY CERTIFICATIONS

12 13

The principle of materiality refers to the definition of the most important issues for the company’s

management, considering its strategy and the perception of the public that relates to the impacts

that their activities provide.

The last materiality process carried out by AMAGGI in 2014 included interviews with industry

experts and 11 company directors, and multi-stakeholder panels in the cities of Cuiabá, Campo

Novo do Parecis, and Lucas do Rio Verde, in Mato Grosso, as well as online questionnaires

for employees, strategic partners, and suppliers. In all, over 500 stakeholders were

heard, and the issues identified by them as priorities were validated by

the AMAGGI Executive Board, as shown in the following table.

MATERIALITY

Contribution to local

development and

the local economy

movement Impact of activities

on deforestation

Maintenance of

native forests in

preservation areas

Water

Management

Innovation

Social and

environmental

criteria to assess

suppliers

Market Presence

Management of

initiatives and

industry, national,

and international

partnerships

Impact of activities

on communities

where the

company operates

Accountability

and transparency

toward society

Support to rural

producers

12 13

14 15

AMAGGI’s governance model follows the good practices established by the Brazilian Corporate Gover-

nance Institute (IBCG). The Board of Directors consists of seven members, being four family represen-

tatives and three independent counselors. The Executive Board consists of the CEO and 11 directors,

with different roles and responsibilities.

Sustainability at AMAGGI is considered by the board and management as one of the strategic pillars

of business. The alignment of senior management with the organization’s strategic objectives and

consistency with organizational values are worked out and developed through the Aroeira project.

In 2015:

• Council and Board Reflection on the guidelines for 2025;

• Building Global Stance on Sustainability and 2025 Vision;

Risk management at AMAGGI is based on the Enterprise Risk Management Policy, launched in 2015,

and acts to mitigate the following risks: financial, strategic, operational and regulatory. The main steps

of the risk management processes are:

• Assessment and measurement of risk factors;

• Preliminary analysis of risk factors and assessment of mitigation alternatives;

• Implementation of mitigation alternatives;

• Communication of executed strategies;

• Control and monitoring.

Compliance with legislation is a strategic priority for AMAGGI. Update

on the changes in the legislation is continuously carried out through

research and the gathering of information from specialized com-

panies.

AMAGGI also evaluates environmental, labor and occupa-

tional health and safety regulations in the supply chain

and in their procurement of materials, services and

marketing of raw materials and commodities, pro-

vides requirements clauses to respect the law,

including environmental and labor, as well as

respect for human rights clauses.

GOVERNANCE

SENIOR MANAGEMENT COMMITMENT TO SUSTAINABILITY

RISK MANAGEMENT

COMPLIANCE WITH LEGISLATION

15

16 1716

People’s development is one of the biggest challenges when it comes to the

company’s growth strategy, and is therefore a priority.

The planning of actions is defined based on each area’s strategy and business

plan as well as employees’ development needs, which are identified through

evaluations and analysis of demonstrated skills.

In 2015, from the business areas’ decoding of strategies, Human Resources de-

signed a strategic plan for the coming 10 years.

TRAINING AND DEVELOPMENT17 HOURS AVERAGE

OF TRAINING PER EMPLOYEE IN 2015

IN 2015

School of Talents - self-awareness moduleStructured to form professionals

who work in the technical axis, the

self-awareness module was im-

plemented, with the participation

of 666 employees.

Employer BrandingThe company appeared for 11 months in the top ten classification on

Vagas.com website, ranking 2nd place in the 2015’s annual ranking.

As part of the project the University Circuit was also carried out,

with talks on the company and its practices, involving circa five

thousand students. The idea is to attract people who have

their values aligned with the company’s to be part of the

Young Talents program.

Strengthening our rootsMeetings were organized betwe-

en executives and employees of

all units where managers talked

about their careers and which are

the ways for employees to identify

themselves with AMAGGI’s culture.

16

18 19

AMAGGI considers communication with stakeholders a key process for business

continuity. Dialogue with these groups is accomplished through partnerships be-

tween corporate communications and other areas of the company.

Since 2014 AMAGGI has invested in and has been modernizing its intranet, thus

representing a breakthrough in communication with employees. Also new chan-

nels were opened, such as Speak to the President, which allows any employee to

make suggestions or ask questions to top management of the company directly.

In order to build a Global Stance on Sustainability which included AMAGGI stake-

holders’ expectations and supported business areas’ expansion, the company

structured, in 2013, the Stakeholder Engagement Plan.

In 2015, this plan was reviewed. With a new mapping of stakeholders, the degree

of impact and influence of each public was evaluated and redefined the priority

stakeholders’ chart.

Together with this prioritized public in 2015 several training actions were implemen-

ted, such as awareness and dialogues. Of the 54 training actions scheduled for

2015/2016, 32 have already been held, 5 are in progress and 17 will begin in 2016.

In 2015 AMAGGI created the Corporate Security area, responsible,

among other things, for the implementation of an ombudsman

channel for both internal and external audiences. The Hotline is

open for complaints, inquiries and allegations of fraud, theft and

adverse behavior to the Code of Ethics and Conduct.

During 2015, the Corporate Security department worked on the im-

plementation of a system for standardizing and optimizing all oc-

currences. In 2016, the department plans to advance on analyzing

2015’s data, generating indicators for management improvement

and ensuring proper accountability to society.

ACCOUNTABILITY AND TRANSPARENCY TOWARD SOCIETY

STAKEHOLDERS ENGAGEMENT

HOTLINE - 0800 647004

Reports 72Under Investigation 12Concluded 60

18 19

20 21

Partnerships and commitments undertaken by AMAGGI are selected from the alignment of initiati-

ves with the company’s values and strategies. The aim is to disseminate principles in the value chain

and manage on the scale required the sector’s positive and negative impacts.

When it comes to voluntary agreements, before deciding upon a new adherence, the company veri-

fies that it already serves at least 70% of the set commitments and targets, even if partially.

It is worth mentioning that in 2015, the company strengthened its presence in debates on public

participation, with productive sectors, associations which represent the agribusiness, NGOs and the

public sector.

MANAGEMENT INITIATIVES AND INDUSTRY, NATIONAL AND INTERNATIONAL PARTNERSHIPS

COMMITMENTS

INSTITUTIONAL PARTNERSHIPS

22 23

AMAGGI’s business strategy for the coming years is growth. The challenge for the future is for the

company to increasingly position itself as a global entity, leading major grain producing markets

such as South America, and selling to markets such as Europe and Asia.

In 2015, AMAGGI began the integration of an office in Hong Kong, China. This office already existed

and belonged to two large cooperatives, one Argentine, and the other Japanese. The company be-

gan operating directly in China with this partnership.

The following indicators show the evolution of AMAGGI’s expansion plans

The innovation theme has always been a priority

for AMAGGI, and it is included in their business

strategies.

Agribusiness is related to great challenges that

demand innovation and involve different eco-

nomic and social interests surpassing national

boundaries on issues such as climate change

and food supply security.

In 2015, AMAGGI Agro initiated a study still con-

sidered to be Proof of Concept (PoC), called

Telemeclima, which aims to cross reference te-

lemetry data provided by machinery with wea-

ther conditions measurements. With real-time

information, it will be possible, in the future, to

improve quality of applications, planting opera-

tions, and reduce use of products and rework

mitigation.

In the Tucunaré and Itamaraty farms new varie-

ties of soybeans and cotton, agrochemical and

biological products and vegetation coverage

that allow for soil pests control are also being

tested. The first results should be published at

the end of the 15-16 harvest.

Cuiabá Terminal Project (crane bar-

ge) - In 2015 the crane barge operation to

the port of Itacoatiara started. The design

allows for the expansion of the terminal’s

capacity, without the need for extra area of

land, thus avoiding deforestation areas in

the Amazon region.

Pusher Tugs - Tapajós corridor - these are diesel electric propulsion ope-

rated and use generators that provide the

best operating conditions and reduce car-

bon emissions by 20 to 40%. It is the first

to be built and operated in Brazil for inland

navigation.

Automatic aluminum caps for closing the barges New caps provi-

de better security for staff and bring ideal

sanitary conditions for grains. AMAGGI is

the only company in Brazil to adopt this

technology.

Volume of origination and

trading in Brazil, and abroad:

13.898 million tons

Operating indicators

Static grain storage capacity

- 2015

2.686.500 million tons

Lifting capacity - own port

capacity (excluding TGG)

5 million tons

Logistics capacity -

navigation capacity

5 million tons

Assets Investment (in

millions of dollars):

MARKET PRESENCE INNOVATION

INNOVATIONSIN NAVIGATION

RESEARCH ON PRECISION AGRICULTURE

2015Commodities 61,2Agro 35,8Navigation 88,44Energy 1,06

Over the past five years, AMAGGI Navigation’s investment in technology (assets) was approximately US$ 280 million.

24 25

All development work with communities is based on the Private Social Investment Policy, the Envi-

ronmental Policy and the Global Stance on Sustainability.

In 2015, AMAGGI operated in 50 municipalities in 13 states, besides the international units. The signi-

ficant impacts are in the states of Mato Grosso, Amazonas, Para and Rondônia.

To manage social impacts on communities, ANDRÉ AND LUCIA MAGGI FOUNDATION plans AMA-

GGI’s social investment in a strategic way, with a more targeted focus on implementation of projects

in the communities, involving different actors and fostering partnerships.

Projects undertaken by the André and Lucia Maggi Foundation in 2015:

Casa Maggica: expanded its service capacity by 34%, reaching 240 students.

Centro Cultural Velha Serpa: public service capacity increased to 6291 people, excee-

ding by 36%.

Potencializa: Kick start of the ‘Potencialize’ project in Campo Novo do Parecis (MT), with

25 institutional stakeholders and about 500 participants taking part in the activities.

Transformar: First Edition of the project in 2015, conducted virtual mode training (online),

covering 12 municipalities of Mato Grosso and 34 social organizations, besides having one

social control association invited.

Jovens Bailarinos: Preparing two students at the Bolshoi Theater School in Brazil.

In order to mitigate impacts related to truck traffi-

cking in the communities where it operates, AMA-

GGI develops several projects focused on this

audience. The main one is the Responsible Truck

Driver Program.

There were more than 2,500 driv-ers who attended the health and well-

-being addressed to truck drivers program

that toured four cities in Mato Grosso (Cuia-

bá, Nova Mutum, Rondonópolis and Sorri-

so). An awareness campaign for the “Fight

against Sexual Exploitation of Children and

Adolescents” was also conducted. Another

action undertaken by AMAGGI’s Responsi-

ble Truck Driver Program was the training of 288 AMAGGI employees who di-

rectly serve truck drivers, on issues related to

cordiality and respect, ethics and conduct.

IMPACTS OF ACTIVITIES ON THE COMMUNITIES WHERE THE COMPANY OPERATES AND CONTRIBUTION TO LOCAL DEVELOPMENT AND DRIVING THE LOCAL ECONOMY

MANAGEMENT OF IMPACT ON COMMUNITIES AND LOCAL DEVELOPMENT

INITIATIVES WITH CARRIERS AND TRUCK DRIVERS

25

26 2726

Actions to support producers are based on the Environmental Policy and the company’s

Global Sustainability Positioning.

The goal is to guide rural producers to gradually improve their legal compliance and social

and environmental performances, promoting responsible agricultural production and quality

of life to the communities where they operate.

There are several initiatives and partnerships that the company participates in order to support

sustainable agriculture and curb illegal deforestation, with the vision of a sustainable supply

chain.

For example, we can mention the Food and Agriculture Business Principles, an initiative of

the UN Global Compact, which AMAGGI participates and coordinates in Brazil.

Partnerships with Soja Plus Program and NGOs such as TNC, IPAM, Earth Innovation

and Earth Alliance also promote the farmers’ development, in subjects such as forest

restoration, development of local communities, RTRS certification producer

group and joining the federal government’s Rural Environmental

Registry (CAR).

SUPPORT TO RURAL PRODUCERS

ENCOURAGING SUSTAINABLE AGRICULTURE AND COMBATING ILLEGAL LOGGING.

Events and lectures conducted in order to dis-

close AMAGGI’s portfolio and expose techni-

cal information that contributes to increased

productivity of crops and the adoption of better

agricultural practices that have the least pos-

sible environmental impact. In the 2015-2016

harvest there will be about 25 events in Mato

Grosso and Rondonia.

TECHNOLOGICAL CIRCUIT

27

28 29

Supply chain mapping:

For farmers, the company has minimal principles for marketing grains:• Veto the producers appearing in the Ministry of Labor and Employment slave labor related

black list

• Veto to areas seized by IBAMA due to deforestation

• Veto to areas designated as Indigenous Lands

• Veto to areas designated as Conservation Units

• Veto to areas deforested within the Amazon biome after 2008 (Soy Moratorium)

In 2015 the company advanced in the governance of information improving the monitoring of

areas not authorized for grain supply.

SOCIAL AND ENVIRONMENTAL CRITERIA TO ASSESS SUPPLIERS

In 2015, all 514 suppliers who

were considered critical were

assessed in environmental,

human rights and labor

practices, and their impact

on communities.

• Anti-corruption clause inclusion in all contracts with suppliers.

• Proportion of spending on local suppliers in important operating

units in 2015 = 72%

Origination - farmers:About 4000 soybean and corn suppliers,

divided into subgroups:

• Large groups (over 50,000 ha)

• Small and medium producers

• Producers certified by RTRS and

PROTERRA

Input Suppliers:Sum about 5000 suppliers, distributed by

categories of products and areas of prac-

tice (local, regional, national and internatio-

nal), classified in the following subgroups::

• Environmentally Critical

• Civil Works Construction Companies

• Shipyards

• Service Providers

• Equipment Suppliers

• Others

Logistics - transport providersApproximately 2,500 contracts for the

transport of corn and soybeans between

AMAGGI Commodities and large, medium,

small and micro transport companies.

30 31

Water management is based on the company’s Environmental Policy. Consumption reduc-

tion targets are established in accordance with improvement opportunities identified and

implemented through the Environmental Management Program.

Through the Environmental Management System (EMS), AMAGGI identifies projects with an

environmental focus in their units, which can contribute to continuous improvement, cost re-

duction and efficient use of natural resources. Among the projects in progress the following

are worth mentioning:

WATER MANAGEMENT

ENVIRONMENTAL MANAGEMENT PROGRAM (PGA)

Tucunaré Farm (MT)Implementing of a water treatment Compact

Station for water re-use when washing vehi-

cles and agricultural machinery.

Port of Porto Velho (RO)Study for the re-use of rainwater.

Headquarters (Cuiabá/MT)Sustainable Movement Program held for the

second consecutive year in order to reduce

water, paper, and plastic cups consumption

as well as increase awareness for proper

waste disposal.

Warehouse Campos de Julio (MT)Average reduction of water consumption of at least 5% in 2015, based on

the monthly average of 2014.

Itacoatiara Factory (AM)Reduction of water consumption following the implementation of a clo-

sed circuit in the lab.

Recycled and reused waterTotal volume of recycled

/ reused water (m3)

Itacoatiara 79.180 Lucas do Rio Verde 140Porto Velho 45

Total water withdrawal per source in 2015 = 1.941.480 m3

30 31

32 33

Deforestation and the preservation of native forests are widely debated topics in the agribu-

siness sector and a priority for AMAGGI.

The company has an extensive conservation area, classified as legal reserve and perma-

nent conservation area (APPDs). With a total of 97.017ha, 19.284ha are located within state

parks and are intended for compensation or exemption from legal reserve quotas and other

77.733ha are preserved on AMAGGI’s farms.

Where the vegetation of permanent preservation areas is not in line with the parameters re-

quired by Brazilian law, AMAGGI maintains the Degraded Areas Recovery Plans (Prad).

Management of greenhouse gas emissionsIn 2015, the company published its fifth

inventory, the second produced according

to the Agricultural GHG Protocol. Conside-

ring possible GHG emissions impacts on

AMAGGI’s businesses and society, the

company established a Greenhouse Gas

Emissions Management Program.

From historical analysis, emission reduc-

tion targets were set for 2020, which are

being validated by the Board in 2016.

IMPACT OF ACTIVITIES ON DEFORESTATION AND MAINTENANCE OF NATIVE FORESTS IN PRESERVATION AREAS

PROJECTS AND INITIATIVES

Monitoring impacts on biodiversity

Currently, 100% of the company’s APPDs are

in the recovering process.

In 2015, AMAGGI continued with the Degra-

ded Areas Recovery Plans of (Prad) of the hy-

droelectric plants Segredo, Santa Lúcia, Ilha

Comprida, Divisa and in the clay and gravel

quarries, totaling 58 hectares.

Protected or restored habitatsIn 2015 roughly 10,500 forest seedlings were

acquired designated for APPs recovery.

3232

MASTHEAD

ACCESS THE FULL VERSIONamaggi.com.br/relatorio2015

CEO of AMAGGIWaldemir Ival Loto

Sustainability Executive ManagerJuliana de Lavor Lopes

Social Responsability SupervisorHeloisa Torres

Communications SupervisorDaniel Escobar

GRI IndicatorsHeloisa TorresFábio Corrêa

Editorial CoordinationElaine Andrade

PhotosAcervo Comunicação Corporativa

Materiality, GRI Consulting and WebdesignReport Sustentabilidade

InfographicsCássio Bittencourt

Graphic Design and Desktop PublishingSOUL Propaganda

34 35

A M A G G I . C O M . B R