Human Rights & Monsanto’s SuppliersJune 2017

Agenda

• Why focus on human rights with strategic suppliers?

• What is Monsanto doing as a supplier?

• Monsanto’s collaborative approach to Human Rights

• What are you doing to respect and advance human rights?

• Case Studies – Human Rights in Business

Expectations are Increasing

Companies are expected to know, and are being held accountable for ESG (environmental, social & governance) behaviors of their suppliers.

What is the Global Reporting Initiative (GRI)?

A voluntary sustainability reporting & disclosure framework for companies to understand and communicate its ESG performance:

- Environmental

- Social

- Governance

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Why is it Beneficial?Provides an ESG view of the company

- Demonstrates transparency

- Provides a view of the company’s self-awareness on key matters

- Meets expectations used to assess company’s commitment to sustainability

GRI Human Rights (HR) Categories

Disclosures through GRI are foundational for corporate

reputation rankings

- HR1: Investment agreements & contracts

- HR2: Employee Training

- HR3: Discrimination

- HR4: Freedom of Association/Collective Bargaining

- HR5: Child Labor

- HR6: Forced/Compulsory Labor

- HR7: Security Personnel Training

- HR8: Indigenous Rights

- HR9: Assessment - Sites

- HR10: % of new suppliers screened using HR criteria

- HR11: Significant actual & potential negative HR impacts & actions taken

- HR12: Human Rights GrievancesThere is an

additional list of “social indicators”Apply to Operations & Suppliers

19 Human Rights Champions

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Human

RightsMfg

Tech

Law

SteeringCommittee

HR Team

How does Monsanto steward its Human Rights policy?

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How does Monsanto implement its Human Rights Policy?

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In an effort to drive policy implementation, we:• Train all new employees on our policy• Train our suppliers on our human rights expectations• Conduct an annual assessment and audit program• Incentivize good practices• Update annually the Executive Team and Board of Directors• Engage in multi-stakeholder dialogue and dilemma-sharing• Include Human Rights data and stories in our public annual

Sustainability Report

Our Model Village program in India rewards qualifying villages for refraining from using child labor on farms by providing in-kind donations to local schools.

Our GoalWe aspire to foster excellence in the respect and advancement of Human Rights, in part, by working with suppliers who:

• Have read, understand, and acknowledge our Human Rights Policy

• Work in a manner to achieve respect and advancement of Human Rights at work in alignment with our policy

• Demonstrate a commitment to continuous improvement

PartnershipAt Monsanto, we want to collaborate with our suppliers to help them understand the Monsanto Human Rights Policy and to achieve continuous improvement in the advancement and respect of human rights in the workplace.

Share with Monsanto any significant actual or potential negative human

rights impacts identified and improvement plans undertaken to

address these issues.

Our Ask of Suppliers

Share with Monsanto any significant actual or potential

negative human rights impacts identified and improvement plans undertaken to address

these issues.

In the spirit of collaboration to respect and advance human rights, we expect that our suppliers do the following:

• Read and understand our Supplier Code of Conduct and Human Rights Policy

• Partner with Monsanto to build understanding of challenges & sustainable solutions

• Identify & mitigate areas of risk

• Continually improve processes

• Comply with all local employment & labor laws

Foundation: Legal Compliance

HUMAN RIGHTS POLICY

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Importance of Human Rights

POLICY:

• Read, understand, and discuss the Monsanto Human Rights Policy & Supplier Code of Conduct

www.monsanto.com

Who We Are > Our Commitments > Human Rights

Who We Are > Procurement > Supplier Code of Conduct

Recommendations to Guide Suppliers

CHILD LABOR:

• Verify the age of all workers and refrain from hiring workers who are not of legal working age

• Implement a process to ensure proper work permits are in place & documented when required by law

• Ensure workers’ hours are age appropriate and do not interfere with school attendance

• Identify ‘safety sensitive tasks’ & avoid assigning such work to younger workers

FORCED LABOR:

• Never restrict a worker’s access toidentification documents

• Do not restrict workers’ freedom of movement (workers should have the freedom to leave at any time)

• Make deductions to worker pay only in accordance with employment conditions and ensure deductions are clearlydocumented

• Refrain from engaging in lending/banking practices. In the event advance payments or compensation to workers is necessary, such should be made in compliance with applicable law and reasonable in light of the circumstances of employment (e.g. anticipated income, duration of employment)

Image credit: CNN, 2014; Source: Urban Institute Study

Recommendations to Guide Suppliers

WORKING HOURS:

• Hours worked daily should be tracked systematically

• Piece rate work (number of pieces and number of hours) should be tracked systematically

• Record total work hours, regular & overtime (if applicable)

COMPENSATION:

• Pay workers at a rate and frequency which complies with local law; this includes overtime premium pay when applicable

• Payroll records for each worker must reflect the time worked & if paid by acre/bag ensure the amount paid is equal to or greater than the legal minimum (hourly/daily/monthly) wage required by law

• Address and resolve worker reported pay issues without retaliation

Source: United States Department of Labor

Recommendations to Guide Suppliers

FREEDOM of ASSOCIATION:

• Allow workers to freely associate with organizations or unions without retaliation to the worker

• Provide a grievance process for workers to report any complaints with their work environment and address issues without retaliation to the worker

Concern is voiced

Resolution achieved without fear of

retaliation

Grievance mechanism

Collective Voice

Recommendations to Guide Suppliers

Infographic Credit: Guardian8

Infographic Credit: OfficeTeam

HARASSMENT & VIOLENCE:

•Develop & communicate to workers a policy for disciplinary action that workers understand• Institute a process for workers to report issues of verbal or physical threat, harassment, or abuse in the workplace • Investigate & take action to resolve any reports of verbal or physical threat, harassment, or abuse in the workplace without retaliation to the worker•Consider appointing an ombudsperson or a Business Conduct officer

Recommendations to Guide Suppliers

DISCRIMINATION:

• Do not discriminate based on legally protected characteristics during hiring, assignment of work tasks, pay, etc.

• Pay all workers based upon the work they perform without differences in payment for men/women or migrant/local workers performing the same work

• Institute a process for workers to report issues of discrimination in the workplace

• Investigate & take action to resolve any reports of discrimination in the workplace without retaliation to the complainant

Performance Ability Experience

Recommendations to Guide Suppliers

SAFETY:

• Provide access to:• Training on safety precautions for the work being performed, first

aid, & response to emergencies• Safe & clean drinking water• Sanitation facilities• Personal Protective Equipment as required for the work being

performed

Every seconds

Workers have a work-related accident

Source: ILOSource: WBCSD

Recommendations to Guide Suppliers

How can we collaboratively work to advance and respect Human

Rights where we operate?

$306 Million in hand-made carpets imported to the US from India in 2012.

Tainted Carpets, 2014

• 3,215 cases of forced labor under Indian law discovered in carpet sector; est. 45% industry prevalence

• 1,406 cases of child labor; est. 20% industry prevalence

• Working conditions in the carpet sector are among the worst faced by any workers

Case Study: Forced & Child Labor in India

Photo Credit: Siddharth Kara, Tainted Carpets

Case Study: Forced Migrant Labor in US Federal

Judge Awards EEOC $7,658,500 in Case Against Farm Labor Contractor Global Horizons

US EEOC Press Release, May 2016

Global Horizons is a labor provider that recruited Thai farmworkers to work in Washington state and Hawaii.

• Global Horizons engaged in the confiscation of worker IDs, provided squalid housing, demanded exorbitant recruiting fees, and engaged in harassment, retaliation, and discrimination

• Washington State:

- Ordered to pay $7.6 million

• Hawaii:

- Held liable for $8.7 million for 82 claimants in Hawaii

- In HI, Maui Pineapple (a client of Global Horizons) was held jointly liable for $8.1 million

Case Study: Tobacco Farmworkers in US A state of

fear: Human rights abuses in North Carolina’s tobacco industry

Report presented by Oxfam, 2011

• 86% of farmworkers interviewed not authorized to work in US

• Many reported paying between $500-$3,000 to cross the border and get work

• Wage violations occurred most often under a labor contractor hired by the grower (i.e. subcontractor)

Photo credit: Oxfam & FLOC

In Closing

Our Goal: a Partnership Approach

We hope to forge a partnership for a successful business relationship that respects and advances the

human rights of workers.

To contact the Monsanto Human Rights team, email us at rights.human@monsanto.com

Questions? Comments? Thank you!