1. Does Sustainability Certification Improve the Triple Bottom Line ?Triple Bottom Line Investing Conference November 3, 2005

2. Workshop Agenda

Rainforest Alliance overview on impacts of certification

Case studies:

Chiquita

Kraft

DaTerra

3. Rainforest Alliance MissionOur mission is to protect ecosystems and the people and wildlife that live within them by transforming land-use practices, business practices and consumer behavior. 4.

Forest Products Industry

Pioneered sustainable forestry certificationhave certified 22 million hectares world-wide.

Instrumental in creating Forest Stewardship Council, international forestry certification accreditation body

Tourism

Launched Sustainable Tourism Stewardship Council, Network on Sustainable Tourism in the Americas, training SMEs in BMPs and certification

Agriculture

Started with bananas (15% of all bananas in international trade are from Rainforest Alliance-certified farms), now working with shade coffee, flowers & ferns, citrus, and cacao producers

Created the Sustainable Agriculture Network, a coalition of nine leading conservation groups in Latin America

Our Experience & Success with Certification & Accreditation 5. What is Certification? Certification is A procedure by which a third party gives written assurance that a product, process, service or management system conforms to specific requirements.Strengths: Provides standards, indicators and accountability, market-based, works at scale. Weaknesses:is complicated and difficult to implement. 6. Designing Better Business Practices Collaboratively

Wildlife Conservation

Ecosystem Conservation

Soil Conservation

Conservation of Water Resources

Integrated Management of Wastes

Integrated Pest Management

Fair Treatment and Good

Conditions for Workers

Community Relations

Conservationists Scientists Communities Industry 7. Ensuring Accountability:The Certification ProcessPre-Assessment Assessment Certification Committee Annual Audit Surprise Audit Continual Improvement 8. Columbia Study on Economic Benefits of Certification

Cost reductions

Access to new markets

Improved regulatory relationships

Risk management

Corporate reputation & brand impact

Corporate governance

Competitive advantage

Access to capital

Financial market reactions

9. Cost Reductions

Cost of Goods Sold

• Chemical usage

• Recycling benefits

• Decreased energy usage

• Reductions in water usage

• Labor

Selling, General and Administrative

• Insurance

• Financing

10. Cost Reductions

Labor Costs

RA certified firms report significantly lower employee turnover

Decreased injury claims and associated costs

Increased employee satisfaction

11. Access to New Markets

Increases available markets

Enhanced relationships with customers

A ticket of entry to some markets

Consumer demand growing

Innovative marketing strategies

12. What Difference Does Rainforest Alliance Certification Make? Garbage properly disposed, or recycled, coffee pulp used for fertilizer, workers use latrines Farms littered with garbage, coffee pulp dumped into rivers, workers defecate in coffee fields Waste Management Natural ecosystems and their flora and fauna well protected Hunting, or extraction of orchids and other flora commonplace Wildlife Protection Forests protected anddegraded areas reforested Completely deforested or with little natural forest, which lacks protectionForest Conservation Abundant shade trees of varied species and sizes, native species to conserve soils, provide habitat for wildlife and firewood, materials, etc. for workers and neighbors No shade trees, or only scattered shade of only one, or few tree species, often exotic species of no use to local wildlife Tree Cover RA Certified FarmsCommon ProblemsFarm Aspects 13. Farm policies posted and explained, environmental education provided, Schools supported with materials, teacher salaries, hot lunches, etcWorkers ignorant of farm policies, environmental laws, no school, or ill-equipped/managed school for workers childrenEducation Contracts for permanent workers, hiring practices monitored, above-minimum wages paid, freedom to organize, complain, strike No contracts, pay below minimum wage, hiring through exploitative middlemen, anti-union policies, worker intimidation Worker Rights Decent housing with cement floors, showers, toilets, cooking and laundry washing areas Rustic, run-down housing often with dirt floors, insufficient latrines, showers and other facilities Worker Housing Safe working conditions, first-aid kits available, farm-supported clinics, or regular doctor visits, health education Insufficient worker safety regulations, no first-aid kits at work sites, no ongoing medical care Occupational Health 14. Farms are good neighbors helping steward shared resources, contributing to conservation programs, construction and maintenance of roads, water systems, etc. supporting local health care, education and other services Farm provides no benefits forneighboring communities andregion beyond employment Community Relations Water conservation practiced, watersheds protected, sewage and mill wastewater channeled to septic tanks and treatment lagoons, riverbanks reforested Excessive water use, streams and rivers polluted with runoff from coffee mills, sewage and garbage, riverbanks and watersheds deforested Water Resources Erosion decreased with barriers, manual weeding, soil enriched with compost No soil conservation measures, heavy reliance on chemical fertilizers and herbicides Soil Resources Dirty dozen pesticides banned, pesticide use cut to minimum, handled only by trained workers wearing protective gear, stored in locked sheds far from housing Dangerous, dirty dozen pesticides in use, excessive pesticide use, workers unaware of dangers, dont wear protective gear when applying them, pesticide storage and transport unsafePesticides 15. Certifications Benefits for the Worlds Forests

RA report analyzes 129 forestry operations in 21 countries. All have won SmartWood/Forest Stewardship Council certification. As a result, these forested lands now have:

Better protection of aquatic, riparian and ecologically sensitive areas (63% of operations were required to make changes to this effect)

Improved worker safety and training (64%)

More effective communications with local communities and conflict resolution with stakeholders (75%)

Greater accountability and transparency

Better management controls (93%), monitoring (86%) and chain-of-custody practices (64%).

The study and all auditor reports of SmartWood Certified operations are available on the Rainforest Alliance Web site:www.rainforest-alliance.org

16. 17. Corporate Responsibility at Chiquita Triple Bottom Line Investing Conference November 3, 2005 Michael Mitchell Director, Corporate Communications Chiquita Brands International 18. Our Company

International producer and marketer of high-quality fresh and value-added produce

• 106-year-old company

• $4 billion in annual revenues

• Premium brand

• • Healthy, convenient, high-quality, fresh

• Operations in more than 60 countries

• 25,000 employees worldwide

• • More than 14,000 farm workers,about two-thirds unionized

• June 2005 acquisition of Fresh Express, U.S. market leader of packaged salads

19. Our Model forCorporate Responsibility

Community

Suppliers

Transparent Reporting

Performance Measurement

Employee Participation & Training

Organization & Accountability

Engagement

Verifiable Standards

Core Values

Leadership

Responsibility OpportunityRespect Integrity 20. Verifiable StandardsLabor

Costa Rica (2002)

Colombia and Panama (2003)

100% SA8000 certification owned farms (2004)

14% independent growers (2004)

Food Safety

Colombia, Panama and Costa Rica (2003)

63% owned farms (2004)

47% independent growers (2004)

Environmental

Initial Engagement (1992)

First owned farms in Costa Rica (1994)

100% certification owned farms (2000)

83% independent growers (2004)

Certification to Leading Standards 21. Labor Engagement

Landmark IUF-COLSIBA-Chiquita Agreement

• Signed June 14, 2001

• Based on core ILO conventions

• Collaboration on worker health and safety

• Fair dealing and continuous improvement

• • Negotiate in good faith

• • Communicate in open, honest and straightforward manner

• • Avoid public international campaigns or anti-union retaliatory tactics

• Committee to review serious or systemic violations

We have seen real progress as a result of the Agreement in a number of Chiquita operations. I remain impressed with the good faith and serious intent Chiquita has brought to this process. Ron Oswald General Secretary International Union of Foodworkers 22. Organization & Accountability

Corporate Responsibility Officerreports to CEO

• With significant interaction with theNominating and Governance Committeeof the Board of Directors

CR Steering Committee

CR specialists in all divisions

Management systems

• CR integrated into company strategy & planning

• Annual CR objectives and bonus for managers

• All managers sign annual code of conduct compliance statement

Manuel Rodriguez 23. Employee Participation & Training 24. Measurement & Reporting 25.

Children plant trees in Bocas, Panama, at an Environmental Awareness Fair

Chiquita Nature & Community Project in Costa Rica http://www.chiquita.com/naturecommunity

Community Engagement 26. Benefits of Corporate Responsibility

Sound agricultural practices from Rainforest Alliance certification reduce costs

• Reduced agrichemical use savings of more than $5 million annually

• Pallet recycling in European market reduced costs by $3 million annually

Other environmental benefits of RA certification

• Reforestation conserves water and soils more than 1 million trees planted

• Groundcover reduces herbicide use

• Better storage and closed systems to avoidagrichemical runoff and improve safety

• Improved waste managementreduces pollution

27. 3,000+ Tons of Plastic Recycled

Worker gathers twine on a farm for recycling

Twine and plastic are stored in warehouses prior to shipment in recycling facilities

Workers compress plastic for recycling

The company used recycled plastic to construct this pedestrian bridge in Costa Rica

28. Other CR Benefits

Improved reputation &brand image

• Chiquita brand is associated with high levels of corporate responsibility

Lower risk profile

• Lower risk of supply disruptions due to labor unrest

• Lower risk of NGO or consumer activism

Higher employee satisfaction

Broadens investor base to SRI funds

• Chiquita on SB20 Index for 4 consecutive years