Vilmorin & Cie - Annual report 2017-2018

ANNUAL REPORT Vilmorin & Cie 120 2017-2018 Social, environmental and societal INFORMATION 4 (the company’s main production region) were hired to run internal audits on the network of farmers and seed multiplication farmers on child labor and minimum remuneration, particularly during pollination periods. On May 1, Labor Day , and on June 12, World Day Against Child Labor, HM.CLAUSE India organized meetings on labor legislation. Between May and October 2017, 28 awareness seminars were run with 250 producers. Moreover, HM.CLAUSE India collaborates with numerous stakeholders from varied horizons: NGOs such as UNICEF , governmental and local authorities, seed producers that are active locally and their federation, etc. The multiplication of audits, with the support of external auditors, is part of the objectives for fiscal year 2018-2019, in order to gain a more accurate follow-up. While the complete eradication of child labor remains the goal, its achievement is not yet completed. However, audits conducted by HM.CLAUSE India show a rate of 0.25% of children among seed producer teams, which shows that the subject has been treated with determination and firmness in recent years. Finally, because child labor is directly linked to the education system in the country, HM. CLAUSE India has provided sanitation facilities in Koppal schools, particularly to increase access to education for girls, who are often hampered by the lack of cleanliness of facilities, and has provided equipment and school supplies to 961 students in three Koppal schools, and one in Rannebur. Each child received a satchel and twelve notebooks in June 2017, to begin the school year 2017-2018. Similarly, HM.CLAUSE's “employment policy” in the United States follows the guidelines of existing national policies against discrimination and child labor, and meets all recruitment and employment requirements. At Mikado Kyowa Seed in Japan, article 16 of the “working rules” manual stipulates restrictions for the employment of workers under the age of 18, in compliance with national and international laws. Vilmorin SA includes a specific “Code of Conduct” clause in its outsourced production contracts outside France forbidding child labor under the age of 16. Finally, each contract with a supplier for Hazera in Israel is assessed internally and includes clauses to insure compliance with laws and regulations on Human Rights. 4.3.2.4. Loyal commercial practices and complying with the rules of competition law Vilmorin & Cie focuses on the use of responsible products and services, and respect in its purchases and partnerships. Particular attention is paid to respecting the principles of fair trade and to the promotion of corporate responsibility in the value chain. With regard to commercial relations, Vilmorin SA has defined strict procedures on the commercial management of free seeds and customer credit. Internal audits run with the finance department by a team of 25 trained in continuous improvement have also been organized particularly regarding respect for the pricing policy. HM.CLAUSE manages best commercial practices through a contractual and balanced approach with its partners and customers. This approach is established with the assistance of specialized external attorneys to make sure the contracts always comply with different legislations. The Code of Conduct reasserts the Group’s commitment to comply with the legal and regulatory, national and international provisions related to the rules of competitive law. These rules fight against the prevention, restriction or distortion of competition in the marketplace. Legal Network lawyers are mobilized within the framework of their action plans to provide information, prevention and training on competition and merger law issues. 4.3.3. Optimizing the sustainable use of natural resources and controlling its impact on climate change Vilmorin & Cie is at the heart of environmental issues by the very nature of its business. The foundation of the seed business is based on the study and enhancement of plant biodiversity. The greater the biodiversity, the more opportunities for crossbreeding will be available and will provide answers to agricultural challenges. Conservation, development and access to biodiversity are therefore crucial topics for the group. The impact of Vilmorin & Cie's activities on the environment is a concern managed as closely as possible to the field, at the level of the Business Units, in a voluntary and responsible approach. In addition, Vilmorin & Cie also integrates environmental risk prevention into its risk management policy, with the implementation of standards applicable to all its sites worldwide (this information is presented in detail on p. 59). This commitment also includes the control (measuring, optimizing, innovating) of the use of natural resources, as well as attention to improving the quantification and recovery of waste. 4.3.3.1. Overall environmental policy Vilmorin & Cie's environmental policy is based on two main areas of commitment related to its business on the one hand, and its reference shareholder on the other. Vilmorin & Cie's major contribution as a seed company is to improve its responsiveness and capacity to develop adaptable growing conditions. Thus, within the group, the breeders'* work allows (1) Since 2013, the Company Act (articles 134, paragraph 3 and 135) has enshrined the obligation of corporate social responsibility in Indian law, requiring companies to participate at their own level in the development and modernization of the country through an obligation of governance, reporting and CSR action plan. 4.3. Conducting activities in an ethical, sustainable and effective manner