Press Release Oct 26, 2021

Scaling up efforts to restore forest in the Amazon

Brazilian man wearing red shirt bending over to inspect a plant

London/São Paulo

olam food ingredients (ofi), a global leader in natural and sustainable ingredients and solutions, Mondelēz International, Partnerships for Forests (P4F) and The Nature Conservancy (TNC) ("the partners") have announced they are scaling up efforts to halt deforestation and restore degraded land in Pará, Brazil, helping to bring 48,000^{^[1]} hectares of land under sustainable management by 2023.

Deforestation rates in Pará are the highest of any Brazilian state. 1.2 million hectares of forest have been lost in the last five years alone, mainly as forest is cleared to make way for cattle farming^{^[2]}. Together, the partners are tackling this by promoting cocoa agroforestry – where cocoa is grown alongside native trees and fruits – as a more profitable alternative. The large-scale project aims to restore lost tree cover and help farmers to diversify and grow their livelihoods. It is also intended to encourage other industry players to replicate the model and help accelerate progress towards protecting this vital landscape.

The project is an expansion of a successful first phase which recently won Nature-Based Project of the Year at the Business Green Leaders Awards 2021. More than 250 farmers have already signed a zero-deforestation agreement, 16,000 hectares of land have been brought under sustainable management, and 1.6 million Brazilian reais of subsidized credit have been unlocked for implementation and management of agroforestry.

The next phase of the project will scale up further to cover 700 farmers and 48,000 hectares of land by 2023. Farmers and rural technicians will get added support and training on cocoa agroforestry through a Technical Assistance Hub co-funded by Mondelēz, P4F, Humanize Institute, GIZ and Extreme E. They will also be supported by ofi and Mondelēz with premiums for their cocoa in exchange for zero deforestation and reforestation commitments and get help accessing credit through a partnership with Banco da Amazônia.

M. Sathyamurthy, President of ofi's cocoa business in Latam & Americas, said: "As a leading supplier of cocoa beans and cocoa ingredients, if we are to create a sustainable future for cocoa farmers and our planet, we must not only put an end to deforestation in the Amazon, we have to help reverse it. Together with our partners, we are demonstrating how proven agroforestry techniques can restore precious forest and generate economic opportunities for farmers, supporting them to be agents of positive change. The project is also an example of how the most granular level of Olam's sustainability insights platform, AtSource Infinity, can deliver transformational impact at scale for communities as well as landscapes, by promoting education and giving female farmers the training and tools, they need to diversify their incomes.

“This next phase will go even further, addressing various bottlenecks that we know are preventing farmers from adopting sustainable practices from problems accessing credit to a lack of skilled labor and technical assistance."

Barbara Ferreira, Senior Project Officer at Partnerships for Forests, said: "The pilot phase addressed the main challenges faced by farmers in an integrated manner by increasing access to the value-chain actors, helping to unlock credit and promoting rural technical assistance. This is all thanks to a multidisciplinary partnership established between investors, industry and other partners to align strategy, define priorities and find solutions together. The second phase aims to provide scale and sustain positive outcomes for the long term with an increased focus on the role of women in agroforestry, training rural technicians and equipping young people to provide specialized labor services."

José Otavio Passos, Amazon Director at TNC Brazil, said: "Cocoa agroforestry has been proven to be more than an environmental solution. It is a better way of generating income for families living in the countryside and also an economic model capable of keeping the land healthy in the long term. Precisely because it brings social and economic benefits, in addition to environmental ones, this project is a proven Nature Based Solution with concrete results".

In partnership with Mondelēz International, ofi will continue to collect data on the project and measure its impact through the Olam Farmer Information System (OFIS). The app collects detailed productivity and socio-environmental data on each farmer participating in the project and delivers tailored advice to help them improve productivity and biodiversity. The data will also be made available to ofi's customers through AtSource.

The project is being expanded with the support of a new investment platform funded by Instituto Humanize, GIZ, and electric vehicle racing series Extreme E.

About ofi

olam food ingredients (ofi) is a new operating group born out of Olam International. ofi offers sustainable, natural, value-added food products and ingredients so that consumers can enjoy the healthy and indulgent products they love. It consists of the industry-leading businesses of cocoa, coffee, dairy, nuts, and spices. ofi has built a unique global value chain presence including its own farms, farm-gate origination, and manufacturing facilities. ofi partners with customers, leveraging its complementary and differentiated portfolio of ‘on-trend’ food products, to co-create solutions that anticipate and meet changing consumer preferences as demand increases for healthier food that’s traceable and sustainable. To subscribe to the ofi newsroom (when the website is live on October 21) please visit www.ofi.com (privacy statement here). If you do not wish to receive information from ofi please contact media@olamnet.com. Follow @ofi-group

About Olam

Olam is a leading food and agri-business supplying food, ingredients, feed and fiber to 17,300 customers worldwide. Its value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a sourcing network of an estimated 5 million farmers. Headquartered and listed in Singapore, Olam currently ranks among the top 30 largest primary listed companies in terms of market capitalization on SGX-ST. Since June 2020, Olam has been included in the FTSE4Good Index Series, a global sustainable investment index series developed by FTSE Russell, following a rigorous assessment of Olam’s supply chain activities, impact on the environment and governance transparency. The FTSE4Good Index Series identifies companies that demonstrate strong Environmental, Social and Governance (ESG) practices and is used by a variety of market participants to create and assess responsible investment funds. More information on Olam can be found at www.olamgroup.com. To subscribe to the Olam Newsroom please visit www.olamgroup.com and read the Privacy statement here. If you do not wish to receive information from Olam, please contact media@olamnet.com

About TNC Brazil

The Nature Conservancy is a global conservation organisation dedicated to conserving the lands and waters on which all life depends. Guided by science, we create innovative, on-the-ground solutions to our world's toughest challenges so that nature and people can thrive together. Working in 75 countries and territories: 37 by direct conservation impact and 38 through partners, we use a collaborative approach that engages local communities, governments, the private sector, and other partners. In Brazil, where it has been operating for more than 30 years, TNC's work focuses on solving the complex conservation challenges of the Amazon, Cerrado and Atlantic Forest through a systemic approach, focused on implementation and impact generation, to reverse climate change and loss of biodiversity. Learn more at www.tnc.org.br.

About Partnerships for Forests

Partnerships for Forests (P4F) is an eight-year programme funded by the UK government via the Foreign, Commonwealth & Development Office (FCDO) and the Department for Business, Energy and Industrial Strategy (BEIS). In Latin America, it operates in Brazil, Colombia, and Peru, implemented by Palladium and Systemiq. P4F supports partnerships that deliver on commitments for deforestation-free commodities, reduce the pressure on forests, and improve livelihoods.

Issued on behalf of ofi by Teneo

ofi@teneo.com

+44 7899 908483

For further information, please contact:

Contacts for ofi corporate communications

Emma Blinkhorn

Senior Communications Manager, ofi

Emma.blinkhorn@olamnet.com

Juliana Tinoco

Senior External Relations and Knowledge Manager, P4F

juliana.tinoco@partnershipsforforests.com

Scaling up efforts to restore forest in the Amazon

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