Food security Index

Cool chain association AGM 2014

May 20th 2014 Paris- Rungis

Malik Zeniti

Agenda

5/20/2014 2

What We’re Doing at DuPont today - market-

driven science creating value by means of

innovative products for our customers

How to become a Thought Leader

Example: Global Food Security Index (GFSI)

Inspiration for CCA and members :

How to become Thought Leadership Champion

Some milestones in our 2012 year history

1802 1830 1850 1900 1925 1945 1990 2000 2050 2090

Birth

Growth

Maturity

Birth

Growth

Maturity

Birth

Growth

Explosives

Chemistry,

Energy

More than 200 years of innovation –

The foundation of Sustainable Growth over decades

Chemistry &

Energy

3 Megatrends driven by a

global population growth:

- feeding the world - reducing our dependence

on fossil fuels

- keeping people and the

environment safe

DuPont 2012 Segment Sales

* Total company sales exclude transfers.

$34.8 B*

Agriculture

$10.4 B 1

Electronics &

Communications

$2.7 B 6

Performance Chemicals

$7.2B 2

Nutrition

& Health

$3.4 B 5

Performance Materials

$6.4 B 3

Safety & Protection

$3.8 B 4

Industrial

Biosciences

$1.2 B 7

DuPont Growth Strategy

Building three world-leading, closely related strategic ‘pillars’:

Driving three critical cross-company ‘enablers’ to maximize results:

innovation, geographic expansion, productivity

Driving differential management to better fund our growth

To be a premier market-driven science company and generate

superior shareholder returns by:

Ag & Nutrition Seeds Traits

Crop Protection Specialty Food Ingredients

Ag & Nutrition Seeds Traits

Crop Protection Specialty Food Ingredients

Bio-based Industrials

Biofuels Biomaterials Biochemicals

Enzymes

Bio-based Industrials

Biofuels Biomaterials Biochemicals

Enzymes

Advanced Materials

Electronic Materials Protective Solutions Alternative Energy

Advanced Polymers Advanced Processes

Advanced Materials

Electronic Materials Protective Solutions Alternative Energy

Advanced Polymers Advanced Processes

Oil Refining Chemistry

Solvents

Molded parts

Fibers

TO…

DuPont Biotechnology

Shifting from oil to renewables for a rich product pipeline

FROM…

Metabolic

Engineering Cellulose

Crops

(Sugar/Starch)

Fuels

DuPont Applied BioSciencesTM

BioMaterials

DuPont™ Susterra™ &

Zemea™ 100%

Renewably

Sourced • De-icing

• Fluids

• Personal Care

• Apparel

• Flooring

• Packaging

DuPont™ Sorona®

DuPont™ Hytrel® Made with

renewable resources:

• Airducts

• Airbag door

• Airbrake tubes

40-60%

Renewably

Sourced

BioFuels

Biofuels From

Biomass

Advanced Fuels

Butanol

Biobutanol

Cellulosic Fuels

Agricultural Inputs

Ethanol

Differentiated Transformative

Agenda

5/20/2014 11

What We’re Doing at DuPont today - market-driven

science creating value by means of innovative

products for our customers

How to become a Thought Leader

Example: Global Food Security Index

Inspiration for CCA and members :

How to become Thought Leadership Champion

They know key socioeconomic

issues, and can generate

positive social outcomes.

They create content that educates

audiences first and promotes

products second.

Besides selling products they can,

for example, take responsibility

for a product beyond the point of

sale, for fair wages, or for

increased recycling, and they

change behaviors.

5/20/2014 12

What Thought

Leaders do

FLUFF Reporters are already bombarded

with jargon and fluff.

What don’t they do? Thought leadership is not high-

profile advertising for a company.

It’s not just about us!

US

TALK

Thought leaders don’t preach. It’s

not just talking; it’s listening and

conversing in the public debate.

FAMOUS

Nor is having a strong brand

personality the same as thought

leadership. Just because the brand

is known does not mean it is

driving change.

BIG

Being a big company does not

necessarily make you a thought

leader. People can buy your

products without trusting you.

A Company as a Thought Leader

5/20/2014 13

“It is of course critical

that we focus attention

on the economic

challenges we face. But

in doing so, we must not

allow ourselves to be

distracted from the

equally urgent task of

taking action on climate

change.”

Example: Unilever and the UNFCCC

Not advertising

Inviting discussion

Understanding

issues

Encouraging

positive change

UNFCCC

United Nations

Framework

convention

on climate

change

DuPont™ is in an unique position to tackle food security challenges

5/20/2014

Copyright © 2014 E. I. du Pont de Nemours and

Company

All rights reserved.

14

¨… We have transformed our portfolio to

put greater emphasis on delivering higher

growth, higher value offerings for the

agriculture and nutrition industries. DuPont

has a unique vantage point on food

security because we have innovations

across the full value chain, allowing us

to holistically address the challenge of

feeding the growing global population.

Improving agricultural productivity, providing

food and nutrition solutions and finding

ways to protect food and reduce waste

are all part of our strategy.¨

¨… The company’s strategy has enabled

DuPont to focus on innovative technologies

and collaborations to understand and adapt

to changing growing conditions globally.¨

Ellen Kullman DuPont™ CEO

Example: Global Food Security Index

Economist Intelligence Unit (EIU) commissioned by DuPont to research and

produce Global Food Security Index (GFSI)

It ranks 107 countries according to their relative

levels of food security using 27 indicators divided

into three categories: Affordability and Financial

Access; Availability; Quality and Safety.

Objectives: provide a rigorous, structured

framework for understanding the drivers of food

security.

Informing

Inviting discussion

Understanding

issues

Facilitating positive

change

5/20/2014 16

Example: Grocery Store in Food Waste Discussion

Listening

Inviting discussion

Understanding

issues

Informing

The «Food Waste» Chain

Food Waste in the supply chain

“the issue of food losses and the development of packaging solutions to address

them are major global concerns.” ( “Appropriate food packaging solutions for developing countries” – Save Food study - FAO - 2011)

Source: «Global Food Losses and Food Waste» - Save Food study - FAO - 2011

Food waste – the crude picture

Source: Wageningen World, April 2012

Enormous problem with large uncertainties

Food waste - implications

Overall solutions correspond

roughly in environmental impact

to the targets set by the Kyoto-

treaty

Benefits

5/20/2014 23

Brand reputation

Loyalty, trust

Differentiated to increase market share

Protect license to operate and

permission to grow

Drive positive change

What can CCA learn to achieve to be a

Thought Leadership (TL) Champion

5/20/2014 24

The TL Team offers/is available for

• Proactive/reactive planning, issues briefing, resources, support,

stakeholders, PR, training…

Ideal TL Champion characteristics, expectations

• Is an expert in his or her field, clear distinct point of view

• Engages with stakeholders through speaking, writing, networking

• Sees the big picture (sees value in TL, interested in issues at stake)

• Motivates and inspires

• Understands Thought Leadership takes time

Further activation – how else can you participate?

• Identify or participate in TL opportunities & events

• Share your knowledge for content development

• Share your insight on stakeholders, debate, current trends

Agenda

5/20/2014 25

What We’re Doing at DuPont today - market-driven

science creating value by means of innovative

products for our customers

How to become a Thought Leader

Example: Global Food security Index

Inspiration for CCA and members :

How to become Thought Leadership Champion

Together, we can feed a growing population.

Maximizing the yield potential of seeds

through sustainable farming practices

Keeping crops pest free and disease free

Enhancing the nutritional value of food

Detecting contamination before it causes

sickness

Reducing waste by packaging food to

protect it from contaminants and

decay

DuPont is committed to ensuring food security

The challenges of ensuring food security

27

Science is universal, but solutions are local

• Innovate for: environment, culture, infrastructure.

Collaboration unlocks the answers science provides

• Facts on the ground: government, farmers, local business, NGOs,

and others.

Science must become local wisdom

• Knowledge transfer: education & outreach efforts.

Sustainability is key

• More than expanding food supply: infrastructure, storage, waste

reduction, improving & preserving water quality.

The DuPont Global Food Security Goals

By the end of 2020, DuPont will help the world

meet the challenge of achieving global food security by:

Innovating to Feed the World. We will commit $10 billion to R&D

and 4,000 new products will be introduced.

2013 Progress: Invested $1.2 billion in R&D in 2012 and

introduced more than 1,000 new products

Engaging and Educating Youth. We will facilitate two million

engagements of young people around the world in educational

opportunities.

2013 Progress: Worked with 360,000 youth globally

Improving Rural Communities. We will work to improve the

livelihoods of at least three million farmers and their rural

communities through targeted collaborations and investments.

2013 Progress: Engaged with more than 160,000 smallholder

farmers.

Global Food Security Index

Specifically, the index seeks to identify:

• The factors affecting food security

• The relationship between these factors

• Countries that rank high to low on food

security

• How countries can improve food systems

to reduce food insecurity

• Priority areas for each country (eg, trade

policy, infrastructure, agricultural R&D)

Economist Intelligence Unit commissioned by DuPont to research and produce Global

Food Security Index

Visit www.foodsecurityindex.eiu.com

It ranks 107 countries according to their relative levels of food security using 27 indicators

divided into three categories: Affordability, Availability, Quality and Safety.

Objectives: provide a rigorous, structured framework for understanding the drivers of food

security.

Access the EIU Global Food Security Index online foodsecurityindex.eiu.com

Explore drivers of food

security

Compare country scores

Find country profiles

Perform scenario analysis

Watch the peer panel

video

Download the Findings

and Methodology paper

and deep dive Excel

model

Video: http://www.youtube.com/watch?v=_-xHkk-z81U

Global food security Index measures

Affordability

Availability

Quality and safety

Index of three core issues evaluating 27 indicators

in 107 countries

An annual measure of the state of global food

security, adjusted with a quarterly factor for changes

of global food prices to assess shocks to food

security

http://foodsecurityindex.eiu.com/

Visit www.foodsecurityindex.eiu.com

For example: Perform scenario analysis by

adjusting food consumption score

Scenario Analysis

Executive summary 2013

More than 870m people globally do not have a secure source of food. In

1996 leaders at the World Food Summit in Rome set a goal of reducing

the number of food-insecure people to 400m by 2015. With an average

of just 2.5m people a year emerging from food insecurity during the last

two decades, this target clearly will be missed.

But although the scope of the problem, particularly in the developing

world, remains vast, gains have been made, largely through poverty

alleviation and innovations that improve market access, increase a

household’s ability to purchase food and boost the availability of

more nutritious crops

The 2013 update of the Global Food Security Index (GFSI) reflects these

limited gains, measured against an overall challenge that eludes rapid

improvement. Globally, food security over the past year has remained

relatively unchanged: the largest number of malnourished people lives

in Asia and the Pacific, while the population of Sub-Saharan Africa

remains the largest concentrated block of hungry people globally.

5/20/2014

Collaboration is crucial to achieve food security

For a global system, the collaboration must be global. It’s the way we

solve challenges that needs to be rooted in the local reality.

Nigeria

Cassava, the tuber of one of the most drought-

tolerant crops, is a local staple

Nigerians grow cassava—more than any other

country in the world—yet they import more

wheat from the US than any other country to

make bread

At DuPont, our South African colleagues made

it possible to replace some of that wheat with

cassava in bread

Healthy people need a healthy food system,

not just an isolated technical solution.

Scientists need to apply the solution, but they

need the collaboration of the people who grow

cassava and institutions that promote healthy

diets.

Collaboration is crucial to achieve food security

Sustainability is key: For food supply to be broadly sustainable, food

security has to encompass not only production but also waste reduction.

Reducing Waste with Tyvek® Air Cargo Covers

Gulf Cooperation Council countries are known

for their extreme temperatures, and in 2010,

almost 70% of the food requirements in the

GCC were imported.

As food is shipped it is exposed for hours to the

sun on the hot tarmac

Air freight companies know that these breaks

in the cold chain are a recipe for irreversible

damage to fresh produce.

By collaborating with companies like Cargolux

and Emirates, we can apply our science and

know-how to control temperatures better and

protect perishable shipments.

Collaboration is crucial to achieve food security

Empowering farmers with knowledge and resources to improve productivity

& profitability cannot be done by one company or institution alone

Spain

Farmers in Murcia were faced with

finding a solution for Tuta Absoluta, a

pest that originated in South America and

abruptly entered the region, destroying

tomato crops and farmers’ incomes in its

path.

DuPont partnered with scientists and

agricultural experts in Brazil to train

farmers on how to identify and help control

the pest by using DuPont™ Altacor®.

Powered by DuPont™ Rynaxypyr®,

Altacor® is an innovative insect control

product that provides broad-spectrum,

residual control of the pests that matter

most in many fruit and nut crops.

The global food security challenge

The world’s population grows by 150,000 people per day. And the demand for

food grows with it.

In 30 years, we’ll need to produce 70% more food than we do now.

That’s why DuPont invests about 60% of its annual total R&D in finding ways to

provide more food.

Achieving food security should be the top priority of all nations, companies and

individuals. It will take all of us – working collaboratively – to ensure every

person has enough nutritious food to eat.

Our products and customers

Kellogg’s inner bags of cereal cartons

are made of DuPont™ Surlyn®. They

can easily be opened by consumers but

stay intact during transport.

DuPont™ Tyvek® Air Cargo Covers

offer an innovative breakthrough for the

transportation of temperature sensitive air

cargo for the Luxembourg Cargolux

Airlines.

Increasing food

production

Our DuPont seed division

Pioneer Hi-Bred works in

Ethiopia individually with small

scale farmers to increase their

productivity.

DuPont™ Altacor® received

exceptional authorization from the

Spanish government for the

control of Tuta Absoluta (the

South American pinworm) in

tomato crops in Spain.

Sometime in 2011, the earth’s population

reached 7 billion.

By 2050, it will be 9 billion.

39

© National Geographic image

Agenda

5/20/2014 40

What We’re Doing at DuPont today - market-driven

science creating value by means of innovative

products for our customers

How to become a Thought Leader

Example: Global Food security Index

Inspiration for CCA about Thought Leadership

But these challenges are too big for any

one government,

one company,

or one region of the world

to address.

Need for increased food production & higher value food

Projected Changes

2000 - 2050

+12% per capita food consumption

globally (kcal/person/day)

+39% meat consumption

globally (kg / person / year)

+64% in developing countries

Global per capita arable land area

of 0.23 ha will decrease to 0.14 ha

Meeting the Millennium

Development Goal on hunger

will require doubling of water

use by crops

Sources: ‘GEO4 Global Environment Outlook’ UNEP; ‘World Agriculture Towards

2015/2030’, ‘World Agriculture Towards 2030/2050’, FAO.

Seed Output

Healthier oil with Pioneer

soybeans (TREUSTM)

DuPont Science & Tech

Direction:

• Advanced traits to improve

crop productivity & grain

quality

• Crop protection solutions

• Soy based nutritious foods

Seed Input

Pioneer drought resistant

crops

Crop Protection

DuPont™ Rynaxypyr® low-

dosage insecticide

Together, we can accomplish

what no one can do alone.

43 © National Geographic image

Copyright © 2014 DuPont or its affiliates. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ™ or ® are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.

Images reproduced by E. I. du Pont de Nemours and Company under license from the National Geographic Society.