Sustainability and U.S. Soy
Impact and business drivers
Rosalind Leeck
Regional Director – Northeast Asia
U.S. Soybean Export Council

What is Sustainability?

Sustainability Perspectives in the Food andAgriculture Value Chain
Global Corporate
Sustainability Leaders
Food Companies andRetailers

Agriculture

U.S. SoyCorporate Sustainability Leaders Perspective#1
ClimatechangeQuestion: Please rate the URGENCY of each of the following sustainability challenges?

#2
Biodiversity
loss

#3
Water
scarcity

Food and Ag Sustainability Trends
FARMINGMANUFACTURING
AND PROCESSING
BRANDS ANDRETAILERS• Methane momentum building• Carbon farming foundations• Steps to scale sustainability• Scope 3 collaboration• Deforestation fight• Plant-based foods• Sustainable pricing wars
• Sustainable labelling battlegrounds

bbMateriality Assessment& SDGs

Updating the U.S.
Soy Sustainability
Materiality
Assessment
Materiality assessment
outcomes are an asset forsustainability reporting,marketingcommunications, andlong-range strategicplanning – but must be
refreshed periodically toensure relevance.

BACKGROUND:• In 2019, USSEC conducted a Sustainability Materiality
Assessment for U.S. Soy.
• Materiality determines the importance and impact of anissue to an organization to identify business risk andopportunity. Materiality informs sustainability strategy,target-setting and reporting. Materiality assessments are
generally conducted as a baseline, then refreshed every 2-5years.

OBJECTIVESof the U.S. Soy Sustainability Materiality Update:• Update stakeholder prioritizations of sustainability
aspects material to U.S. Soy, with a forward-looking
lens• Identify stakeholder prioritizations of sustainability
aspects for U.S. Soy to take action for impact• Actively engage internal and external stakeholders• Utilize output to inform sustainability goal settingand regional opportunities

What has changed since 2019?

https://www.mayerbrown.com/en/perspectives-events/publications/2023/06/european-union-publishes-defores tationregulation

Downstream customers are more deeply involving supply
chains to deliver on bigger commitments (recent example)

Source: ProFoodWorld

Material Aspects for U.S. Soy Sustainability – 2019 Baseline Assessment
Environmental
Greenhouse Gas Emissions(lbs. CO2e)

SocialLabor Practices and Safe Working Conditions(i.e., Occupational Health & Safety, Training &Development

EconomicMarket Presence(i.e., market access, share of national and global
markets and market outlook)

Energy Management

Human Rights

Economic Performance(i.e., direct and embedded energy to produce crop andcrop inputs)(i.e., Non-discriminatory, Child Labor, Forced Labor)(i.e., direct economic value generated)

Water Management

Society

Indirect Economic Performance(use, types, quality)(i.e., Anti-corruption and Anti-competitive behavior)(i.e., enhancing skills and knowledge in a geographicalregion, economic impact of improving social orenvironmental conditions)

Soil Health/Carbon Sequestration

Product Safety, Quality and Nutrition

2019 Interview Asked:(conservation of soil, adding more C than use,sequester C0 2 from atmosphere)(i.e., Safety, Compliance, Health Benefits)

Land Use

Investment in Global Agricultural Development(not expanding crop production into marginal lands)(i.e., programs like WISHH – the World Initiative for Soyand Human Health)1.

Rate aspects in IMPORTANCE, as either Low,Medium, or High importance as you think
about U.S. SOY.

2.

Rate U.S. Soy’s Ability to IMPACT theseenvironmental aspects (Low, Medium,High).

(i.e., wildlife habitat, pollinators and integrated pest
management, cultivated and non-cultivated areas)3.

Three MOST and two LEAST importantaspects?

Deforestation

4.

Both TODAY and for 5-10 YEARS from now.

(achieving zero net deforestation OR positiveforestation)

For update:

Biodiversity

1.

Anything missing?

ALL 15 factors: GHGe is the top priority; consistent with 2019 predictions“Thinking about ALL 15 sustainability factors together, what
are the TOP areas for U.S. Soy to make an impact?”

GREENHOUSE GAS EMISSIONS (lbs. CO 2e)
PRODUCT SAFETY, QUALITY AND NUTRITION (i.e.,Safety, Compliance, Health Benefits)
SOIL HEALTH/CARBON SEQUESTRATION (conservation ofsoil, adding more C than used, sequester CO2 fromatmosphere)
MARKET PRESENCE (i.e., market access, share of nationaland global markets and market outlook)

ECONOMIC PERFORMANCE (i.e., direct economic valuegenerated)
WATER MANAGEMENT (use, types quality)(tabl e represents top 6 pri orities from a ll 92 res pondents)
Note: “Score” is a weighted calculation based on the sum of weighted values, i.e. the numberof respondents ranking that item as first, second, third, etc.

In 2019, Stakeholders Prioritized MaterialIssues by Importance to U.S. Soy and
Ability of U.S. to Make an Impact In 5-10Years.
Respondents in 2019 predicted that GHG
emissions would rise in PRIORITY in thenear future… and indeed, in 2023,
respondents ranked GHGe as the mostimportant sustainability factor for U.S.
Soy to make an impact.

“Thinking about ALL 15 sustainability factors together, what are the TOP areas for U.S. Soy to make an impact?”

External StakeholdersGREENHOUSE GAS EMISSIONS (lbs. CO2e)

PRODUCT SAFETY, QUALITY AND NUTRITION (i.e.,
Safety, Compliance, Health Benefits)
SOIL HEALTH/CARBON SEQUESTRATION(conservation of soil, adding more C thanused, sequester CO2 from atmosphere)

U.S. Soy Internal Stakeholders
SOIL HEALTH/CARBON SEQUESTRATION(conservation of soil, adding more C thanused, sequester CO2 from atmosphere)

MARKET PRESENCE (i.e., market access, share ofnational and global markets and market outlook)
PRODUCT SAFETY, QUALITY AND NUTRITION (i.e.,
Safety, Compliance, Health Benefits)

MARKET PRESENCE (i.e., market access, share ofnational and global markets and market outlook)

GREENHOUSE GAS EMISSIONS (lbs. CO2e)

WATER MANAGEMENT (use, types quality)

ECONOMIC PERFORMANCE (i.e., direct economic
value generated)

ECONOMIC PERFORMANCE (i.e., direct economic
value generated)
Note: “Score” is a weighted calculation based on the sum of weighted values, i.e. thenumber of respondents ranking that item as first, second, third, etc.

External stakeholders are looking for the result ofGHGe reduction – U.S. Soy Family is focused on farm
practices to reduce GHGe.

INVESTMENT IN GLOBAL AGRICULTURAL
DEVELOPMENT (i.e., programs like WISHH –the World Initiative for Soy and Human Health)

WATER MANAGEMENT (use, types quality)

External Stakeholders prioritize
Product Safety, Quality and Nutrition…
as do U.S. Soy family respondents

U.S. Soy family ranked Market Presence ofparticularly high priority for continued
action by U.S. Soy – “table stakes”

U.S. Soy Priorities andSustainable Development Goals

Water Management

Energy &Waste

Partnerships

SoilHealthLand Use
Biodiversity

GHGe

SDG 2.4“By 2030, ensure sustainable foodproduction systems and implement
resilient agricultural practices that
increase productivity and production, that
help maintain ecosystems, that strengthen
capacity for adaptation to climate change,
extreme weather, drought, flooding andother disasters and that progressively
improve land and soil quality.”

CarbonFootprinting

Data Generation Methodology
Methodology

Data

Alignment andcomplementarity

EU PEFCR

Alignment with the FAO-LEAP guidelines for feed
ensures the integrity and quality of LCA feed datasets.

ooooooooooooClimate changeOzone depletion
Human Toxicity
Ecotoxicity
Particulate matter
Ionizing radiation
Photochemical ozone
formation
Acidification
Eutrophication
Land Use
Water Use
Resource Use15

How Can GFLI Data be Usedo Benchmarking, hotspot analysis, scenario analysis
o To drive innovation for more sustainable feed and animal protein• Reduce business risk, differentiate & increase saleso Meet Scope 3 emissions targets• 50-80% of animal protein impact is from feedo Improve internal processes of a company
o Marketing and communication of results of own company based ondata calculated using a transparent and harmonized methodology• Verification (Green Claims)o Academic and other research and studies*Incorporating GFLI data into a commercially sold tool is possible via an annual subscription.

www.globalfeedlca.org

16

Deriving Business Value from GFLI Data

Leverage GFLI Data
for feed
formulation
ingredients

Integrate GFLI
data* with life
cycle study orsoftware tool

Define local
footprint of feed
and animal protein

Identify
opportunities for
impact reduction(scenario analysis)

Deliversustainability
innovation for feed& animal protein

Communicate
impact reductionresults*Consider the FAO LEAP Guidelines for LCA and include data in scope such astransportation, feed mill processing data, use phase of feed formulation on farm (i.e. life ofanimal incl excretion) and packaging and associated impacts as required by local needs.
17Carbon footprint of US soy
Carbon footprint (including LUC) of soybean for Japan market (kg CO2-eq/kg soybean)

5.80

5.60

0.41

0.87

1.00

0.82

0.76

1.00

0.93

Calculations are country averages.
Specific supply chains may havedifferent carbon footprint results.
18

Carbon footprint of U.S. Soybean Meal
(crushed at destination)

Carbon footprint (including LUC) of soybean meal for Japan market (kg CO2-eq/kg SBM)
4.67

4.56

0.74
0.46

0.84

0.70

0.66

0.93

0.86

19

Carbon footprint of U.S. Soybean Meal
(crushed at origin)

Carbon footprint (including LUC) of soybean meal for Japan market (kg CO2-eq/kg SBM)
4.54

0.45

4.70

0.81

0.91

0.77

0.72

0.92

0.86

20

Lowest Carbon Footprint

21

SSAP & SUSSKey Achievements for SSAP

Silver Equivalency

U.S. Soy

SSAP Shipments for MY 2014-2023
MY2014-MY2023
50,000,000
44,480,427

45,000,000

40,605,328

40,000,000
35,000,000
28,432,763

MT

30,000,000
25,000,000

22,355,707 21,299,232

20,000,000

16,379,071

15,000,000

11,415,446

10,000,000

5,876,808

5,000,000
0

6,845

851,933
MT2014

2015

2016

2017

Verification requested for 70% of all exports

2018

2019

2020

2021

2022

2023

SSAP Shipments as a Percent of Total U.S. Soy
99%

92%
25%
66%

65%

5%

36%

80%

SUSS/Fed with SUSS Logos

18 Countries
89 Companies
1079 SKUs

Sajo Daerim– Protein
Paste
South Korea

Proteinol – Cooking Oil
MexicoAgropequaria SSK S.L.R.
– EggsDominican Republic

Grupo ACI S.A. Tilapia
Costa Rica

Seven Eleven – Tofu BarJapan

“Product differentiation” and “responding to customers needs for sustainableproducts” were tied as the leading benefit cited from using the SUSS logo

KEY
Increasing
NeutralDecreasing

Rank

SUSS Logo Benefit

Expected Benefit Trends
Current
Future (+5 yrs.)

Product Differentiation

1
Responding to Customers Needs

2

Increases Brand Recognition

3

Maintaining Competitiveness4

Increasing Sales and/or Purchases

5

Improving Access to Financing and/or Markets
Q. Please rank the following benefits of using the SUSS logo in ascending order, where 1 represents little to no perceived benefit and5 represents a high perceived benefit. The order of responses for these benefits will provide insights as the priorities for yourbusiness in using the SUSS logo. Rank five options.

n=26

USSEC.ORG | USSOY.ORG

While the U.S. Soybean Export Council (USSEC) does not guarantee the forecasts or statements of USSEC Staff or Contractors, we have taken care in selecting them to represent ourorganization. We believe they are knowledgeable and their presentations and opinions will provide listeners with detailed infor mation and valuable insights into the U.S. Soy and U.S.
Ag Industry. We welcome further questions and always encourage listeners to seek a wide array of opinions before making any fin ancial decisions based on the information
presented. Accordingly, USSEC will not accept any liability stemming from the information contained in this presentation.