Sustainable agriculture certificate for beet sugar production

Statement

Krajowa Spółka Cukrowa S.A. hereby informs that on the basis of the verification audit concerning the self-assessment of the sustainability level of the Growers' farms, and in accordance with the reporting requirements of the Farm Sustainability Assessmant - Version 2.1 (June 2018), the implementation of the sustainable agriculture requirements at the Gold Level (75.5%) and Silver Level (24.5%) has been confirmed. The statement applies to all Growers contracting sugar beet in the Branches of KSC S.A.

Memorandum

On 26 May 2021, Krajowa Spółka Cukrowa S.A. and its Growers received the FSA SAI Platform certificate confirming that sugar beets are grown in accordance with the principles of sustainable agriculture.

The certificate was awarded on the basis of the audit conducted by the accredited certification body CSQA at the headquarters of Krajowa Spółka Cukrowa S.A. and in a group of randomly selected farms out of more than 14,000 Growers delivering sugar beets to KSC S.A. Sugar Plants. The Growers who participated in the audits received confirmation of the Gold (75.5%) and Silver (24.5%) status concerning the implementation and use of sustainable agricultural practices. In practice, it means that more than 14,000 Growers supplying sugar beets to KSC S.A., while growing sugar beets to achieve the best possible yields, are also concerned about protecting the environment, their own and their employees' health, and producing safe food. The SAI Platform's requirements include, among other things, conducting operations in accordance with the law, sustainable management of the farm and its natural resources (soil, water), as well as proper use of agricultural inputs (fertilisers, plant protection products), maintaining environmental biodiversity, ensuring proper working conditions and safety, and functioning of the farm as an element of the local community. For several years now, Krajowa Spółka Cukrowa has been successfully certifying the origin of 100% of its sugar beets from sustainable sources. So far, the solutions have allowed the sugar produced by the Company to be qualified at the Silver level - compliant with the SAI Platform criteria. KSC S.A., as a processor of agricultural produce and at the same time a food producer, is constantly updating and implementing good practices in order to fully participate in building a sustainable food system not only in Poland, but also in the EU, in line with the "from field to table" strategy. In order to confirm the implemented practices, the FSA SAI Platform certification was initiated, and thanks to the obtained certificate Krajowa Spółka Cukrowa S.A. may proudly inform its customers and consumers that a vast majority of sugar beet Growers can boast the Gold level of sustainable practices, and the Company is actively involved in protecting the environment, its employees, suppliers and consumers.

SAI Platform – The Sustainable Agriculture Initiative is a global organisation of producers, processors, traders and retailers representing the food and beverage industry. SAI has developed and promotes the use of a single self-assessment tool for Farmers, regardless of their continent and country of origin, which provides a synthetic assessment of the level of sustainability of farm practices including economic, environmental and social aspects. The results of the survey are recognised by key stakeholders in the food industry and provide a basis of information for those interested in becoming involved in sustainability issues. For more information on the SAI Platform and FSA, please visit: https://saiplatform.org/.