Document 1gOzLLmnzyVLQxd8o1MK1nXoq

MONSANTO COMPANY (MON) SPECIALTY CHEMICALS | US Transitioning into a fully integrated ag supplier with Bayer acquisition B ESG RATING LAST UPDATE: December 15, 2017 A GOVERNANCE SNAPSHOT Board Independence % Significant Votes Against Management Entrenched Board Pay Performance Gap Executive Pay Non-Disclosure Multiple Share Classes with Different Voting Rights 92.3% YES NO NO NO NO INDUSTRY RATING DISTRIBUTION 22% 22% ESG RATING HISTORY B B B Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 ESG SCORE CARD* WEIGHT SCORE QUARTILE Environment Toxic Emissions & Waste Opportunities in Clean Tech Water Stress Carbon Emissions 50.0% 4.1 21.0% 1.3 11.0% 4.8 11.0% 4.9 7.0% 10.0 Social 21.0% 0.4 Chemical Safety Health & Safety Labor Management 21.0% 0.4 0.0% 9.4 0.0% 7.3 Governance Corporate Governance 29.0% 3.7 15.0% 4.8 Business Ethics & Fraud 14.0% 2.5 N/A Anticompetitive Practices Tax Transparency 0.0% 4.2 N/A 0.0% 7.0 View Corporate Governance Details Section -> 1 Overall Score Weighted-Average Key Issue Score 3.2 Industry Relative Score 2.1 ISSUER COMMUNICATION Company response last 12 months? YES Last Communication Date May 12, 2017 RATING COMMENT RATING DATE: May 12, 2017 Monsanto's rating is unchanged at 'B'. Monsanto faces barriers to market growth due to concerns from consumers and regulators over genetically modified (GM) seeds. While the company's traits may offer crop yield benefits, consumer perception continues to work against the company. Consumer doubt was further intensified in April 2017 following the classification of glyphosate as a known cancer-causing substance to the State of California. The safety of glyphosate was reaffirmed by European, US, and Canadian regulators in 2017, but the combination of additional uncertainty regarding its safety, as well as the known rise of glyphosate-resistant superweeds, represent a key long-term risk. View Additional Analyst Commentary -> KEY RISKS Chemical Safety - Score 0.4 May 12, 2017 Concerns over labeling transparency and the low-level presence of biotech traits in conventionally-grown products represent a long-term risk for Monsanto. Almost half of the company's total revenue is derived from GM seeds and traits, most of which are not approved for use in European markets. Additionally, the classification of glyphosate as a substance known to cause cancer to the State of California introduces additional uncertainty. Toxic Emissions & Waste - Score 1.3 May 12, 2017 Producers of agricultural chemicals have a high risk of incurring environmental liabilities due to the hazardous nature of their products and potential for unintentional releases. Monsanto has environmental management systems to mitigate these risks, but increasing hazardous waste intensities reflect negatively on the effectiveness of its process changes. Business Ethics & Fraud - Score 2.5 May 12, 2017 Monsanto is involved in lawsuits alleging the violation of competition laws, excessive royalty payments in Brazil, and has attracted significant opposition for its aggressive patent enforcement methods. View Issuer Communication Summary Details -> STRENGTHS No areas of substantial strengths in managing material risks or capitalizing on growth opportunities are identified for this company. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT EX P-3588 Page 1 of 64 SVEC OLDMONS0570643 MONSANTO COMPANY (MON) ESG RATING g MOST RECENT CONTROVERSIES (View Controversies Detail Section HEADLINE Argentina: Complaint by Farmers over Royalties Allegedly Sought for Cultivation of Second Generation Seeds from Inacta Roundup Ready 2 Xtend: Alleged Damage to Soybean Farms Due to Dicamba Use Lawsuits over Alleged Contamination of Pacific Northwest Fields with Genetically Modified Wheat WHO Agency Declares Glyphosate as "Probably Carcinogenic" to Humans Monsanto Guilty of Chemical Poisoning CEO BOARD OF DIRECTORS ASSESSMENT Moderate TYPE Customer Relations DATE December 2017 Moderate Moderate Moderate Moderate Impact on Local Communities Biodiversity & Land Use Product Safety & Quality Product Safety & Quality December 2017 December 2017 December 2017 December 2017 SHAREHOLDERS Name Hugh Grant Tenure 14 Years Total Realized Pay USD 9,071,654.0 Total Summary Pay USD 17,048,834.0 1 Inside Directors o Outside related Directors 12 Outside Directors Majority Shareholder Control (%) N/A Insider Holdings (%) 0.0% 5% Holdings 19.1% % Held by Largest Shareholder N/A LARGEST 10 INDUSTRY PEERS (SPECIALTY CHEMICALS) Givaudan SA Akzo Nobel N.V. ECO LAB INC. L'AIR LIQUIDE SOCIETE ANONYME POUR L'ETUDE ET L/EXPLOITATION DES PROCEDES GEORGES CLAUDE Linde Aktiengesellschaft AIR PRODUCTS AND CHEMICALS, INC. THE SHERWIN-WILLIAMS COMPANY Shin-Etsu Chemical Co., Ltd. PRAXAIR, INC. PPG INDUSTRIES, INC. MONSANTO COMPANY TOXIC EMISSIONS & WASTE OPPORTUNITIES IN CLEAN TECH WATER STRESS CARBON EMISSIONS CHEMICAL SAFETY N/A CORPORATE GOVERNANCE N/A N/A N/A QUARTILE KEY: RATING TREND KEY: Bottom Quartile Top Quartile maintain ^ upgrade TT two or more notch upgrade 4/downgrade TT two or more notch downgrade RATING AND TREND AAA T AAA AAA o A T A BBB T BBB o BBB o BBB o BBB o B The Weighted-Average Key Issue score is dynamic, reflecting changes in any underlying scores as of the Last Update date, while the Industry Relative Score is more static and corresponds to the Rating Date. Issues that we determine do not present material risks or opportunities to companies in a given industry receive 0% weight and do not impact the overall ESG rating. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 2 OF 64 EX P-3588 Page 2 of 64 SVEC OLDMONS0570644 MONSANTO COMPANY (MON) ESG RATING g ADDITIONAL ANALYST COMMENTARY LAST UPDATED: September 14, 2016 In September 2016, Bayer AG agreed to an all-cash USD 66 billion takeover of Monsanto, adding to the consolidation in the ag chem industry. Monsanto previously embarked on a strategy to become an integrated supplier to farmers, and the acquisition by Bayer significantly expands the offering of crop protection chemicals to be used in a cross selling strategy. This strategy is supported by the promising growth of Monsanto's Climate FieldView analytics platform and the microbe-based solutions from the BioAg Alliance, which further diversify the resulting company's product mix and redi ( . reliance on glyphosate-based solutions. However, antitrust concerns are a looming threat to the Bayer-Monsanto deal, which is expected to close by the end of 2017. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 3 OF 64 EX P-3588 Page 3 of 64 SVEC OLDMONS0570645 MONSANTO COMPANY (MON) ESG RATING g TOXIC EMISSIONS & WASTE PERFORMANCE f Top Quartile 0 Bottom Quartile Second Quartile 6 Third Quartile KEY ISSUE SCORE DISTRIBUTION 29% 0123456789 10 Key Issue Score TOP 5 INDUSTRY LEADERS ECOLAB INC. 8.9 KANSAI PAINT CO.,LTD. 7.3 Hitachi Chemical Company, Ltd. 7 CHR. HANSEN HOLDING A/S 6.7 Givaudan SA 6.7 BOTTOM 5 INDUSTRY LAGGARDS SUMMARY ASHLAND GLOBAL HOLDINGS INC. 1 ANALYST COMMENT: Producers of agricultural chemicals have a high risk of incurring environmental FMC CORPORATION 0,8 liabilities due to the hazardous nature of their products and potential for unintentional releases. Monsanto has environmental management systems to mitigate these risks, but increasing hazardous ICL-ISRAEL CHEMICALS LTD. 0.6 waste intensities reflect negatively on the effectiveness of its process changes. CF INDUSTRIES HOLDINGS, INC. 0 We measure exposure to the risk of incurring environmental liabilities based on the hazardous waste intensity, air pollutant intensity, and toxicity of releases from the company's lines of business. All of Monsanto's revenue is attributed to the production of crop protection chemicals and seeds, which have high hazardous waste intensities according to data from the U.S. Environmental Protection Agency. Producers of crop protection chemicals operate in a highly regulated industry, in which product labeling, storage, and transportation guidelines are strictly enforced. Although Monsanto does not have group-wide initiatives to reduce its hazardous emissions or waste, the company has made improvements to its environmental management system which could have a positive influence on its oversight of global operations. The company's environmental, health, and safety policy applies to all global operations and its Crop Protection operations are certified to the ISO 14001 standard for environmental management systems. Additionally, all manufacturing facilities, farms, and research facilities are covered under Monsanto's auditing program. However, the company does not commit to quantifiable targets and does not highlight process adjustments to reduce its environmental impact. W. R. GRACE & CO. 0 METHODOLOGY NOTE This issue evaluates the extent to which companies may face liabilities associated with pollution, contamination, and the emission of toxic or carcinogenic substances. Scores are based on operations generating toxic byproducts, air pollutants, or hazardous waste; strategy, targets, and programs to reduce emissions; quantified performance; and controversies. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 4 OF 64 EX P-3588 Page 4 of 64 SVEC OL.DMONS0570646 MONSANTO COMPANY (MON) ESG RATING g Between 2013 and 2016, Monsanto's SOx and NOx emissions intensities varied only slightly, while its VOC emissions intensity increased by 8% CAGR. Although its emissions intensities still remain below the sub-industry average for Fertilizer and Ag Chem producers, Monsanto's largest concern is around hazardous waste. Between 2013 and 2016, the company's hazardous waste intensity increased by 24% CAGR. While waste intensities are typically more volatile than emissions due to their link to construction projects and potential for re-classification, the consistent increase suggests that Monsanto may not be implementing appropriate process changes to reduce the risk associated with hazardous material. In the context of global industry peers, Monsanto ranks at the bottom quartile. Monsanto's exposure to potential costs associated with its discharges and waste is determined to be high. Our analysis finds the company to have low capacity to manage the relevant risks. EXPOSURE 8.6 0 12 3 4 5 6 7 S 9 10 Low M ode rate High Key Drivers of Exposure Exposure to: Risk of increased compliance costs and liabilities associated with damaging health, property; risk of loosing access access to markets due to community opposition or heightened regulatory hurdles Type of Operations: This represents the portion of the company's revenues derived from lines of business that are High Risk (typically generate large amounts of toxic emissions), Medium Risk (typically generate moderate amounts of toxic emissions), and Low Risk (typically generate low amounts of toxic emissions). h Medical substances and botanical O products, Pesticides and agricultural chemicals No exposure to medium risk segments No exposure to low risk segments MANAGEMENT Source: US Environmental Protection Agency (EPA). Toxics Release Inventory (TRI); US EPA. 2008 National Emissions Inventory; Risk Screening Environmental Indicators (RSEI) databases; Thomson; MSCI ESG Research; company disclosure 2.9 01 234567S 9 10 Low Moderate High PRACTICES: Overall, the company's systems to address toxic emissions appear to be limited. Select contributors to this assessment include: Strengths: Existence of Environmental Management System (EMS): ISO 14001 or equivalent Disclosure around the number or percentage of sites with HAZWOPER or ISO 14001 certification: Disclosed Evidence of regular environmental impact audits: Yes MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 5 OF 64 EX P-3588 Page 5 of 64 SVEC OLDMONS0570647 MONSANTO COMPANY (MON) B ESG RATING Evidence of audits across all locations of operations: Yes Weaknesses: Evidence of annual compliance audits: No Demonstrated track record of achieving its toxic emissions targets: No previous targets PERFORMANCE: Performance track record of Monsanto is strong, CONTROVERSIES: All controversies are assessed as part of the annual review of a company's ESG rating. MSCI ESG Research tracks controversies for all companies on a regular basis. The Monsanto has been flagged for involvement in controversial events or alleged misconduct. Performance Toxic Releases Performance Relative to Peers (0-10 Score, 0=worst, 5.7 10=best): Air Emissions: NOx Performance 3 Year Average Intensity: Average Annual % Change in Intensity: 0.26 1.93% Air Emissions: NOx Performance Year NOx Emissions NOx Emissions Intensity (tons/ USD million sales) 2009 2,431.0 0.21 2010 3,577.0 0.34 2011 3,026.0 0.26 2012 3,035,0 0.22 2013 3,770.0 0.25 2014 3,770.0 0.24 2015 3,970.0 0.26 2016 3,600.0 0.27 Air Emissions: SOx Performance 3 Year Average Intensity: Average Annual % Change in Intensity: 0.1 -2.02% Air Emissions: SOx Performance Year SOx Emissions SOx Emissions Intensity (tons/ USD million sales) 2009 2,192.0 0.19 2010 2,371.0 0.23 2011 2,010.0 0.17 2012 690.0 0.05 2013 1,710.0 0.12 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 6 OF 64 EX P-3588 Page 6 of 64 SVEC OL.DMONS0570648 MONSANTO COMPANY (MON) ESG RATING g Year SOx Emissions SOx Emissions Intensity (tons/ USD million sales) 2014 1,610.0 0.1 2015 1,560.0 0.1 2016 1,450.0 0.11 Air Emissions: VOC Performance 3 Year Average Intensity: Average Annual % Change in Intensity: 0.01 8.14% Air Emissions: VOC Performance Year VOC Emissions VOC Emissions Intensity (tons/ USD million sales) 2009 106.0 0.01 2010 119.0 0.01 2011 120.0 0.01 2012 94.2 0.01 2013 78.0 0.01 2014 93.7 0.01 2015 93.9 0.01 2016 89.5 0.01 Releases to Land: Hazardous Waste Performance 3 Year Average Intensity: Average Annual % Change in Intensity: 0.71 65.21% Releases to Land: Hazardous Waste Performance Year Hazardous Waste Quantities Hazardous Waste Intensity (tons/ USD million sales) 2009 4,928.0 0.42 2010 5,064.0 0.48 2012 3,303.0 0.24 2014 9,420.0 0.59 2015 9,250.0 0.62 2016 12,400.0 0.92 Practices Governance and Strategy Existence of Environmental Management System (EMS): Percentage of sites with hazardous waste guidance that achieved HAZWOPER certification or follow ISO 14001 for waste management: Disclosure around the number or percentage of sites with HAZWOPER or ISO 14001 certification: ISO 14001 or equivalent 100.0% Disclosed MSCI & 1 MSCI ESG V 1 RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 7 OF 64 EX P-3588 Page 7 of 64 SVEC_OLDMONS0570649 MONSANTO COMPANY (MON) Evidence of regular environmental impact audits: Evidence of audits across all locations of operations: Evidence of annual compliance audits: Targets Aggressiveness of Toxic Emissions Reduction Target (0-10 Score, 0=worst, 10=best): Demonstrated track record of achieving its toxic emissions targets: Yes Yes No 0 No previous targets Controversy Cases Assessment Moderate Moderate Moderate Minor Minor Minor Minor Minor Headline San Diego City Lawsuit: Alleged Liability for San Diego Bay PCB Contamination Washington State: Lawsuit over Alleged Contamination of State's Natural Resources with PCB Seattle City Lawsuit: Alleged Contamination of Local Water Sources with PCB Port of Portland Lawsuit: Alleged Contamination of Two Local Rivers with PCB Hartford City Lawsuit: Alleged Contamination of School Building with PCB Town of Westport Lawsuit: Alleged Contamination of School Building with PCB Sauget Superfund Site: USD 14.8 Million Settlement Related of Contamination Cleanup for Six Former Waste Disposal Sites Personal Injury Claims Related to PCBs Status Ongoing Ongoing Ongoing Ongoing Ongoing Ongoing Concluded Concluded ESG RATING g Last Updated November 2017 August 2017 February 2017 September 2017 August 2017 April 2017 February 2017 September 2016 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 8 OF 64 EX P-3588 Page 8 of 64 SVEC OLDMONS0570650 MONSANTO COMPANY (MON) ESG RATING g Opportunities in Clean Tech OPPORTUNITIES IN CLEAN TECH PERFORMANCE Strong Management <0 Top Quartile 0 Bottom Quartile Second Quartile 6 Third Quartile Score Change Quartile Weight (since rating) As of 4.8 n/a 11.0% May 12, 2017 V KEY ISSUE SCORE DISTRIBUTION 29% Moderate Management Limited Management i MONSANTO COMPANY .. :*t .* . Moderate Risk 012345678 9 10 Key Issue Score TOP 5 INDUSTRY LEADERS JOHNSON MATTHEY PLC 7.9 Hitachi Chemical Company, Ltd. 7.6 Risk Exposure UMICORE S.A. 7.2 ~\ r I 8 9 10 NOVOZY MESA/S 6.8 High Risk Evonik Industries AG 6.3 BOTTOM 5 INDUSTRY LAGGARDS SUMMARY THE MOSAIC COMPANY 3 ANALYST COMMENT: Monsanto's key opportunity is in the development of seeds and farm services that enable growers to respond to climate-related risks. However, the lack of global acceptance of genetically engineered crops limits the potential of Droughtgard Hybrids, a drought-tolerant corn, to GM-friend!y markets in North and South America. The company has also set aggressive growth targets for its Climate FieldView platform. GRUPA AZOTY SPOLKA AKCYJNA 2,7 Potash Corporation of Saskatchewan 2.6 Inc. PHOSAGRO PAO 2,5 Our evaluation of clean tech takes into account the company's exposure to potential opportunities in clean tech markets, in addition to whether the company has capitalized on these opportunities through its product offerings and R&D strategy. Most of Monsanto's business is attributed to seed development and production, which does not have conventional applications in clean technology. However, companies involved in this line of business have opportunities in sustainable agriculture and drought-tolerant seeds. Monsanto has one of the largest research and development programs in the MSCI World Chemicals peer set, however the payoff from seed and trait development takes place over a long time horizon and is vulnerable to regulatory change. Relative to MSCI World constituents in the Fertilizers & Agricultural Chemicals industry as of February 2017, Monsanto's three-year R&D/sales ratio is above average (10.9% vs. 2.6% industry average) and increased by 2.8% CAGR between 2013 and 2016, which outpaces the industry average increase of 2.8% CAGR in the same time period. UPL LIMITED 2.4 METHODOLOGY NOTE This issue evaluates the extent to which companies take advantage of opportunities in the market for environmental technologies. Scores are based on exposure to potential opportunities based on business model and policy incentives; innovation capacity and strategic development initiatives; and revenue derived from clean technologies. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 9 OF 64 EX P-3588 Page 9 of 64 SVEC OL.DMONS0570651 MONSANTO COMPANY (MON) ESG RATING g Monsanto's opportunities in clean technologies are limited to markets that have embraced the use of genetically engineered crops, specifically those with drought-tolerant traits. However, within these markets, drought-tolerant seeds carry significant opportunity as farmers seek out ways to mitigate potential impacts associated with climate risk. In 2013, Monsanto launched the first drought tolerant corn seed to the US market in a partnership with BASF, which is expected to invest over USD 2.S billion in the development of stress-tolerant corn, soybeans, cotton, canola, and wheat. According to the International Service for the Acquisition of Agri-Biotech Applications, overall plantings of DroughtGard varieties increased by more than 500% since being introduced in 2014. While concerns over GMO crops from environmental groups and consumers will continue to impact the company, droughttolerant traits have large market potential in the U.S., which is the world's largest producer of corn and is exposed to drought risks in the Plains. In addition to seed traits, Monsanto has also invested heavily in crop analytics and biologicals. The BioAg Alliance, a partnership between Monsanto and Novozymes, aims to develop microbe-based solutions that improve crop yield and productivity. While the deal entailed a USD 300 million payment from Monsanto to Novozymes, the partnership will leverage Novozymes' existing technologies in microbe development and Monsanto's distribution network and field experience. The BioAg Alliance aims to achieve plantings of 250-500 million acres by 2025 (equivalent to 20-50% of US farmland) and is already seeing yield increases across its corn and soy field trials. Monsanto also has aggressive growth targets for its Climate Fieldview crop analytics platform, which aims to complete Monsanto's offering as an integrated ag services company. The company plans to reach 300-400 million acres with its Fieldview platform by 2025, with an interim 2017 target of 25 million paid acres. In 2016, the paid acreage for Climate Fieldview reached 14 million, a 180% yearover-year increase. In the context of global industry peers, Monsanto ranks at the above average quartile. Monsanto's potential to benefit from growing demand for clean technologies is determined to be minimal. Our analysis finds the company to have low capacity to capitalize on the relevant growth potential. EXPOSURE 0,9 0 12 3 4 5 6 7 S 9 10 Low Moderate High Key Drivers of Exposure Exposure to: Opportunity for business growth from capturing demand changes and enjoying early mover advantage or regulatory incentives Type of Operations: Percentage of operations in business segments with high growth potential in clean tech markets No exposure to high opportunity segments Pesticides and agricultural chemicals Medical substances and botanical products Source: Thomson; MSCI ESG Research; company disclosure MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 10 OF 64 EX P-3588 Page 10 of 64 SVEC OL.DMONS0570652 MONSANTO COMPANY (MON) MANAGEMENT ESG RATING g 4.6 0 12 3 4 5 6 7 S 9 10 Low Moderate High PRACTICES: Overall, the company's initiatives to profit from clean technologies appear to be of moderate strength. Select contributors to this assessment include: Strengths: We have not identified any exceptionally strong practices or policies implemented by this company. Weaknesses: Targets to increase investment in clean tech: Not disclosed PERFORMANCE: Performance track record of Monsanto is weak. Performance Score: nature of involvement in clean tech activities: 0.0 Sustainable Water Water Resource Management & Efficiency Involvement in developing or distributing drought-resistant seeds: Practices Non-core involvement (revenues <20%) Strategy Targets to increase investment in clean tech: Targets to increase investment in clean tech: Programs & Initiatives Not disclosed Not disclosed R&D Expense Year R&D (USD million) R&D / Sales ratio 2008 980.0 8.62% 2009 1,098.0 9.37% 2010 1,205.0 11.47% 2011 1,386.0 11.72% 2012 1,517.0 11.23% 2013 1,533.0 10.32% 2014 1,725.0 10.88% 2015 1,580.0 10.53% MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED, ESG RATINGS REPORT | PAGE 11 OF 64 EX P-3588 Page 11 of 64 SVEC OLDMONS0570653 MONSANTO COMPANY (MON) Year R&D (USD million) R&D / Sales ratio ESG RATING g MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 12 OF 64 EX P-3588 Page 12 of 64 SVEC OL.DMONS0570654 MONSANTO COMPANY (MON) ^ Water Stress t) ESG RATING g WATER STRESS PERFORMANCE Strong Management f Top Quartile 0 Bottom Quartile Second Quartile 6 Third Quartile KEY ISSUE SCORE DISTRIBUTION* 21% Moderate Management Limited Management Key Issue Score av, * TOP 5 INDUSTRY LEADERS MONSANTO COMPANY * ECOLAB INC. 10 NOVOZY MESA/S 9 Moderate Risk Risk Exposure Givaudan SA 8.7 T I 10 CHR. HANSEN HOLDING A/S 8.4 High Risk CRODA INTERNATIONAL PUBLIC 8.4 LIMITED COMPANY SUMMARY ANALYST COMMENT: Monsanto's research and glyphosate manufacturing operations are not particularly water-intensive, but the company has a substantial water footprint through the irrigation practices of its contract growers. However, Monsanto has strong reporting standards for its contract growers and has a target to improve their irrigation efficiency 25% by 2020. BOTTOM 5 INDUSTRY LAGGARDS W. R. GRACE & CO. 3.9 TAIYO NIPPON SANSO CORPORATION 3,8 CF INDUSTRIES HOLDINGS, INC. 3.7 Monsanto has a moderately low risk of being impacted by water shortages or limitations on water use. We assess water-related risk exposure based on the typical water intensity of the company's business activities as well as the percentage of the company's operations located in countries or regions with higher levels of water stress, according to the World Resources Institute's Aqueduct water risk tool. The company's primary lines of business, crop protection chemicals and research activities, are moderately water intensive, but most of Monsanto's water footprint is derived from its supply chain and contract growers. Approximately 70% of the company's assets are located in the United States, most of which is derived from highly stressed states such as Idaho and Wyoming according to WRI Aqueduct. FRUTAROM INDUSTRIES LTD 2,3 CELANESE CORPORATION 1.4 METHODOLOGY NOTE This issue evaluates the extent to which companies may face water shortages affecting their ability to operate, lost access to markets due to stakeholder water conflicts, or higher water costs. Scores are based on exposure to water stressed basins and water intensive segments; water management strategy and targets; water use over time and vs. peers; and controversies. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 13 OF 64 EX P-3588 Page 13 of 64 SVEC OL.DMONS0570655 MONSANTO COMPANY (MON) Monsanto is also indirectly exposed to water stress through the locations of its customers. In 2015, the company recognized lower seed sales in Australia due to constraints on water availability that decreased total planted area. Such results may materialize in other water-stressed markets, including the U.S and Mexico. Relative to MSCI ACWI Fertilizer & Ag Chem companies, Monsanto's customer base is most exposed to interannual water supply variability due to its concentration of sales in the US, Mexico, and Argentina. Although Monsanto's water management strategy lags behind that of peers, the company has made significant improvements to its oversight and monitoring of water risks. Unique to this industry, Monsanto monitors and reports on the water withdrawals of its contract growers. Supply chain information in the agricultural products industry is typically opaque, but Monsanto has followed through on a commitment to measure and monitor water usage among its business partners. The company also has a target to improve the irrigation application efficiency of its owned and contracted global seed production fields by 25% between 2010 and 2020. Approximately 27% of Fertilizers & Agricultural Chemicals companies publicly commit to a water reduction target. Taking the company's contract growers into consideration, Monsanto has the highest water intensity in the industry. Relative to MSCI ACWI constituents in the Fertilizers & Agricultural Chemicals sub industry as of February 2017, Monsanto's water withdrawal intensity is above average (49,444 mS/ million USD sales vs. 29,260 industry average). In the context of global industry peers, Monsanto ranks at the bottom quartile. Monsanto's exposure to potential operational disruptions or costs related to water shortages is determined to be low. Our analysis finds the company to have minimal capacity to manage the relevant risks. ESG RATING g 4.6 0 12 3 4 5 6 7 S 9 10 Low Moderate High Key Drivers of Exposure Exposure to: Risk of increased cost of input, disputes around access rights to key resources or operational disruptions to production processes requiring water as a critical input Type of Operations: Percentage of operations in business segments with high/moderate/low water intensity No exposure to high risk segments Medical substances and botanical products, Pesticides and agricultural chemicals No exposure to low risk segments Source: IERS' Comprehensive Environmental Data Archive (CEDA) data; Canadian Industrial Water Survey - Water intake in manufacturing and extractive industries; Water withdrawals per USD capitai compiled by MSCI ESG Research; Thomson; company disclosure MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 14 OF 64 EX P-3588 Page 14 of 64 SVEC OL.DMONS0570656 MONSANTO COMPANY (MON) ESG RATING g Location of Operations: Percentage of operations in countries or regions with high/moderate/iow percent of territory affected by oversubscription to water resources Source: Gassert, F., P. Reig, T. Luo, and A. Maddocks. 2013."Aqueduct country and river basin rankings: a weighted aggregation of spatially distinct hydrological indicators." Working paper. Washington, DC: World Resources Institute, November 2013. , a Mexico, USA, USA (Idaho state), USA Available online at wri.org/publication/aqueduct-country-riverbasin-rankings (country data); Hoekstra, A.Y. and Mekonnen, M.M. (Wyoming state) (2011) "Global water scarcity: monthly blue water footprint EMEA, Argentina, Canada, other countries, compared to blue water availability for the world's major river Asia Pacific m Brazil, USA (Iowa state), USA (Louisiana basins", Value of Water Research Report Series No. 53,UNESCO-IHE, Delft, the Netherlands, (basin data); Thomson; MSCI ESG Research; state) company disclosure MANAGEMENT 2.5 0 12 3 4 5 6 7 S 9 ID Low Moderate High PRACTICES: Overall, the company's programs to manage and reduce water consumption appear to be limited. Select contributors to this assessment include: Strengths: CEO is responsible for water management strategy and performance: Yes CSR or Sustainability Committees are responsible for water management strategy and performance: Yes Weaknesses: We have not identified any significant deficiencies in practices or policies implemented by this company. PERFORMANCE: Performance track record of Monsanto is weak. CONTROVERSIES: Ail controversies are assessed as part of the annual review of a company's ESG rating. MSCI ESG Research tracks controversies for all companies on a regular basis. There is no evidence of the Monsanto current involvement in prominent controversial events or alleged misconduct. Targets Water Consumption/ Withdrawal Targets Baseline Target Year Year Target Description Target Reduction (%) 2010 2020 Increase irrigation water application efficiency across global seed production operation by 25 percent by 2020, compared to 2010 baseline (from 67% to 84%) 25.0% Performance Water Intensity Relative to Peers (0-10 Score, 0=worst, 10=best): 0.5 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 15 OF 64 EX P-3588 Page 15 of 64 SVEC OL.DMONS0570657 MONSANTO COMPANY (MON) Water Withdrawal Performance Year Freshwater Withdrawal (m3) Freshwater Withdrawal Intensity (m3/ USD million sales) 2009 18,625,760.0 1,588.69 2010 20,356,223.0 1,938.32 2011 19,928,073.0 1,685.68 2012 22,500,000.0 1,666.17 2013 35,300,000.0 2,375.34 2014 964,000,000.0 60,801.01 2015 724,000,000.0 48,263.45 2016 667,000,000.0 49,400.09 ESG RATING g MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 16 OF 64 EX P-3588 Page 16 of 64 SVEC OL.DMONS0570658 MONSANTO COMPANY (MON) ESG RATING g CARBON EMISSIONS PERFORMANCE f Top Quartile 0 Bottom Quartile Second Quartile 6 Third Quartile KEY ISSUE SCORE DISTRIBUTION 31% Key Issue Score TOP 5 INDUSTRY LEADERS ASIAN PAINTS LIMITED 10 AXALTA COATING SYSTEMS LTD. 10 CHR. HANSEN HOLDING A/S 10 CRODA INTERNATIONAL PUBLIC 10 LIMITED COMPANY ECOLAB INC. 10 SUMMARY BOTTOM 5 INDUSTRY LAGGARDS L'AIR LIQUIDS SOCIETE ANONYME 2.5 ANALYST COMMENT: Due to the low carbon intensity of its operations, Monsanto's exposure to rising POUR , ETUDE ET EXPLOITATION energy costs and carbon pricing is low. Furthermore, the company has committed to a demanding DES PROCEDES GEORGES CLAUDE greenhouse gas emissions reduction target for its Crop Protection business. PHOSAGRO PAD 2.5 Monsanto's risk of being impacted by carbon emissions regulations is low. The company is involved in AIR PRODUCTS AND CHEMICALS, 2 business activities that are characterized by low emissions and low energy use, including seed INC. production (80% of assets) and agricultural chemicals (20%). Additionally, most of the company's assets are located in regions that are not covered by emissions trading systems. CF INDUSTRIES HOLDINGS, INC. 1.6 Monsanto's direct greenhouse gas emissions footprint is relatively low in comparison to industry peers. Nevertheless, the company has a demanding target to improve its GHG emissions per ton of crop protection product by 22% between 2010 and 2020. Relative to MSCI ACWI Fertilizers & Agricultural Chemicals companies that commit to a carbon emissions reduction target, Monsanto's average annual reduction is above average (2.2% per year vs. 1.7% industry average). Approximately 67% of MSCI ACWI Fertilizers & Agricultural Chemicals companies publicly commit to a carbon emissions reduction target. EMS-CHEMIE HOLDING AG 1.3 METHODOLOGY NOTE This issue evaluates the extent to which companies may face increased costs linked to MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 17 OF 64 EX P-3588 Page 17 of 64 SVEC OL.DMONS0570659 MONSANTO COMPANY (MON) ESG RATING g Relative to MSCI ACWI constituents in the Fertilizers & Agricultural Chemicals sub-industry as of February 2017, Monsanto's carbon emissions intensity is below average (198 tC02e/million USD sales vs. 986 industry average). The company's emissions intensity increased by 5.7% CAGR between 2013 and 2016, which lags behind the industry average increase of 5,7% CAGR in the same time period. In the context of global industry peers, Monsanto ranks at the top quartile and is among 31% of industry peers receiving the top score on this issue. Monsanto's exposure to potential costs linked to carbon pricing or regulatory caps is determined to be low. Our analysis finds the company to have modest capacity to manage the relevant risks. carbon pricing or regulatory caps. Scores are based on exposure to GHG intensive businesses and emerging regulations; carbon reduction targets and mitigation programs; and carbon intensity over time and vs. peers. EXPOSURE 3.3 0 12 3 4 5 6 7 3 9 10 Low Moderate High Key Drivers of Exposure Exposure to: Risks of having to pay increased compliance costs tied to carbon emissions regulations Type of Operations: Percentage of operations in business segments with high/moderate/low carbon intensity Source: IERS' Comprehensive Environmental Data Archive (CEDA) No exposure to high risk segments data - direct GHG emissions intensity; Eurostat-Air Emissions Pesticides and agricultural chemicals Accounts by Activity; Thomson; GHG emissions intensities compiled Medical substances and botanical products by MSCI ESG Research; Location of Operations: Percentage of operations in countries with strengthening or pending carbon emissions regulation Canada, Mexico, USA, USA (Iowa state), USA (Idaho state), USA (Louisiana state), USA (Wyoming state) EMEA, Argentina, Brazil, other countries, Asia Pacific No operations in markets with low risks Source: MSCI ESG Research; Thomson; company disclosure MANAGEMENT 6.8 0 12;14 5 6 7 S 9 10 Low Moderate High PRACTICES: MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 18 OF 64 EX P-3588 Page 18 of 64 SVEC OL.DMONS0570660 MONSANTO COMPANY (MON) ESG RATING g Overall, the company's programs to reduce the carbon intensity of its operations appear to be of moderate strength. Select contributors to this assessment include: ____ Strengths: Aggressiveness of the company's reduction target in the context of its current performance: Aggressive target with a low base CDP disclosure: Yes Weaknesses: We have not identified any significant deficiencies in practices or policies implemented by this company. PERFORMANCE: Performance track record of Monsanto is strong. Practices Targets Aggressiveness of the company's reduction target in the context of its current performance: Demonstrated track record of achieving its carbon reduction targets: Aggressive target with a low base On pace to achieve current reduction target Carbon Improvement Targets Baseline Year Target Year Target Description Target Reduction (%) 2010 2020 GHG intensity of Crop Protection business (per unit production). 22.0% Mitigation Strength of Greenhouse Gas Mitigation Strategy (0-10 Score, 0=worst, 6.0 10=best): Programs or actions to reduce the emissions intensity of core operations Use of cleaner sources of energy: Capture GHG emissions: Energy consumption management and operational efficiency enhancements: CDP disclosure: Limited efforts / information Limited efforts / information Some efforts Yes Performance Carbon Emissions Performance Relative to Peers (0-10 Score, 0=worst, 5.5 10=best): GHG Emissions - metric tons C02e Year 2008 Scope 1 Disclosed Scope 1 Estimate Key E.CSI Scope 2 Disclosed Scope 2 Estimate Key E.CSI Scope 1+2 Disclosed Scope 3 (upstream) 2009 2010 2011 2012 2013 2014 2015 2016 1,160,105.0 1,153,800.0 1,195,928.0 1,610,000.0 1,450,000.0 1,570,000.0 1,540,000.0 1,600,000.0 Reported 661,934.0 Reported 661,900.0 Reported 827,066.0 Reported 539,000.0 Reported 1,040,000.0 Reported 1,080,000.0 Reported 1,240,000.0 Reported 1,070,000.0 Reported Reported Reported Reported Reported Reported Reported Reported 1,822,039.0 1,815,700.0 2,022,994.0 2,149,000.0 2,490,000.0 2,650,000.0 2,780,000.0 2,670,000.0 Scope 3 (downstream) Scope 3 (undefined) Scope 1 Estimated 1,197,027.0 Scope 2 Estimated 718,600.0 Scope 1+2 Estimated Scope 1+2 Estimate Key 1,915,627.0 E.CSI Reported Reported Reported Reported Reported Reported Reported Reported GHG Emissions Details Feb 2017 Estimation Update 2016 SR, p.82 2016 SR, p.82 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 19 OF 64 EX P-3588 Page 19 of 64 SVEC OL.DMONS0570661 MONSANTO COMPANY (MON) ESG RATING g GHG Emissions Intensity - metric tons C02e / USD million sales Year GHG Intensity GHG Intensity Details GHG Intensity - Reported GHG Intensity - Reported Details 2008 168.6 2009 155.4 2010 172.9 2011 171.1 2012 159.1 2013 167.6 2014 167.1 0.19 MT per $1,000 Revenue 2015 185.3 0.2 MT per $1,000 Revenue 2016 197.7 0.2 MT per $1,000 Revenue Energy Consumption Total energy Total energy Energy intensity Reported Total energy Year consumption (reported) consumption (MWh) (reported) intensity details consumption intensity 2010 3,819,600.0 3,819,600.0 363.7 2011 6,418,186.0 6,418,186.0 542.9 2012 6,295,360.0 6,295,360.0 466,18 2013 22,300.0 6,194,444.44 416.83 2014 2015 2016 25,100.0 27,400.0 25,200.0 6,972,222.22 7,611,111.11 7,000,000.0 1.62 GJ per $1,000 Revenue 1.82 GJ per $1,000 Revenue 1.86 GJ per $1,000 Revenue 439.75 507.37 518.44 Energy consumption details Fuel, electricity and steam Fuel, electricity and steam Fuel, electricity, heat, steam and cooling Direct and indirect energy consumption Direct and indirect energy consumption Direct and indirect energy consumption Direct and indirect energy consumption MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 20 OF 64 EX P-3588 Page 20 of 64 SVEC OL.DMONS0570662 MONSANTO COMPANY (MON) Chemical Safety t4 CHEMICAL SAFETY PERFORMANCE Strong Management f Top Quartile 0 Bottom Quartile Second Quartile 6 Third Quartile ESG RATING g Score Change Quartile Weight (since rating) As of 0.4 n/a 21.0% May 12, 2017 KEY ISSUE SCORE DISTRIBUTION Moderate Management Limited Management Key Issue Score 1 TOP 5 INDUSTRY LEADERS i * JOHNSON MATTHEY PLC 7.2 NITTO DENKO CORPORATION 6.9 MONSANTO COMPANY Risk Exposure K+S Aktiengesellschaft 6.6 . ! | | A U | 1*1 | 1 2 3 4 5 6 7 8 9 10 CRODA INTERNATIONAL PUBLIC 6.4 Low Risk Moderate Risk High Risk LIMITED COMPANY NOVOZY MESA/S 6.4 SUMMARY BOTTOM 5 INDUSTRY LAGGARDS MONSANTO COMPANY 0.4 ANALYST COMMENT: Concerns over labeling transparency and the low-level presence of biotech traits in conve-^riaily-grown products represent a long-term risk for Monsanto. Almost half of the PPG INDUSTRIES, INC. 0,4 compan itaI revenue is derived from GM seeds and traits, most of which are not approved for use in European markets. Additionally, the classification of glyphosate as a substance known to cause ASHLAND GLOBAL HOLDINGS INC. 0.2 cancer to the State of California introduces additional uncertainty. FMC CORPORATION 0 Approximately 20% of Monsanto's revenue is derived from crop protection chemicals, which are coming under increasingly stringent registration requirements in Europe (10% of sales). The EU has been implementing a revised pesticide regulation that will likely result in several substance bans over the next ten years. Substances that are classified as carcinogenic, mutagenic, or reprotoxic (CMRs), persistent organic pollutants (PoPs), persistent, bioaccumulative, or toxic (PBT), or as endocrine disrupters will be taken off the market once their initial ten year approval expires. Crop protection chemicals commonly utilize substances that are classified as hazardous to human health. However, most of the company's sales are derived from markets with less stringent chemical safety regulations, including the U.S (57% of sales) and Latin America (17%), which lessens Monsanto's risk of being impacted by substance bans or regulatory action. However, Monsanto's largest business, Seeds and Genomics (68% of sales), produces and licenses conventionally-bred and genetically-modified seeds, which has attracted significant opposition due to the lack of transparency on potential long-term environmental and health risks. THE SHERWIN-WILLIAMS COMPANY 0 METHODOLOGY NOTE This issue evaluates the extent to which companies may face lost market access or product reformulation costs due to the presence of chemicals of concern. Scores are based on exposure to products known to contain substances of high concern, exposure to evolving regulations; chemical phase-out plans, transparency, and development of viable alternatives; and controversies. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 21 OF 64 EX P-3588 Page 21 of 64 SVEC OL.DMONS0570663 MONSANTO COMPANY (MON) With regards to Monsanto's Agricultural Productivity segment, which produces Roundup-branded glyphosate products, the company is faced with considerably lower chemical safety risks than more diversified peers in the agricultural chemicals industry. Monsanto's Agricultural Productivity segment is strategically positioned to leverage growth in its Seeds and Genomics segment, which cuts down on the complexity of its pesticide business. While competitors such as Syngenta offer more than 50 different chemical groups in their pesticide business, Monsanto is only focused on glyphosate products. While glyphosate is the most widely used crop protection chemical in the world, two influential agencies have labeled the substance as probably carcinogenic, introducing significant uncertainty into the long-term health consequences of glyphosate applications. In March 2015, the World Health Organization classified glyphosate as "probably carcinogenic". In April 2017, California's environmental health agency added glyphosate to the Proposition 65 list of substances known to cause cancer. While neither constitute a ban, the classification and additional warning labels could provide additional momentum for other agencies to follow suit. Nevertheless, the safety of glyphosate was re-confirmed by the EU Chemicals Agency, the US EPA, and Canada's Pest Management Regulatory Agency in 2017, which take risk-based, as opposed to hazard-based approaches. Our largest concerns stem from Monsanto's Seeds and Genomics business (79% of sales). Approximately 59% of its total revenue is derived from the US, where consumer sentiment around GM seeds is mixed but regulation is unlikely to tighten and play against the company in the near term. GM seeds are already entrenched in the US food chain, so we do not foresee any significant shift in the market. However, a movement to increase transparency in the supply chain and require GMO labeling on food products is gathering momentum, and has the potential to push consumer awareness over a tipping point that can impact the demand for GM seeds. Although we estimate that 30% of Monsanto's seed revenue is derived from conventionally-bred varieties, the company is highly exposed to shifts in consumer demand and its reluctance to adopt a stance of transparency reflects negatively on its long-term business strategy. -- GM Seed Producers Face Uphill Battle in Europe, Pressures in the US -- The company continues to face opposition from regulators in Europe and environmental groups that are concerned with potential negative environmental effects associated with GMOs. We estimate that sales and royalties from GM seeds and traits account for 70% of the company's Seeds and Genomics revenue (55% of Monsanto's total revenue). Most EU member states have banned the cultivation of GM seeds for human consumption, which has led GM seed producers to focus on more GM-friendly markets in the US, Argentina, Brazil, India, and Canada - the top 5 largest markets according to the international Service for the Acquisition of Agri-Biotech Applications (ISAAA). Despite the high level of growth in these markets, consumer sentiment and skepticism from environmental groups have contributed to the steady opposition to genetically modified foods, which have spawned initiatives to introduce GMO labels and have supported the growth in organic agriculture. To date, only one GM product has been approved for cultivation in the EU - Monsanto's MON810 maize, which is approved for use in animal feed. Despite the approval from the European Commission, nine member states, including France and Germany, have banned MON810 entirely due to negative public sentiment on GM crops. Similar to other --sfenies that are involved in the development of GM seeds, including BASF, Monsanto has stoppeljdl^plying for approvals and is focusing its efforts on high growth markets in South America and Africa. In the context of global industry peers, Monsanto ranks at the bottom quartile. Monsanto's exposure to regulatory risks and potential reformulation costs is determined to be moderate. Our analysis finds the company to have minimal capacity to manage the relevant risks. ESG RATING g MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 22 OF 64 EX P-3588 Page 22 of 64 SVEC OL.DMONS0570664 MONSANTO COMPANY (MON) EXPOSURE ESG RATING g 6.6 0 12 3 4 5 6 7 S 9 10 Low Moderate High Key Drivers of Exposure Exposure to: Risk of losing market access or reformulation costs due to presence of chemicals of concern in products Type of Operations: Percentage of revenue from product lines that typically contain substances of very high concern (SVHC) and Substitute It Now (SIN) List substances Pesticides and agricultural chemicals Source: Danish Working Environment Authority; International Medical substances and botanical products Chemical Secretariat (ChemSec) Substitute It Now (SIN) List; No exposure to low risk segments Thomson; MSCI ESG Research ; company disclosure Location of Operations: Percentage of revenue in markets with strengthening or evolving chemical regulations EMEA, Canada, other countries, USA, USA (Iowa state), USA (Idaho state), USA (Louisiana state), USA (Wyoming state) Asia Pacific Argentina Source: Thomson; MSCI ESG Research; company disclosure MANAGEMENT 0.0 0 12 3 4 5 6 7 S 9 10 Low M ode rate High PRACTICES: Overall, the company's chemical phase-out and management strategy appear to be minimal. Select contributors to this assessment include: Strengths: We have not identified any exceptionally strong practices or policies implemented by this company. Weaknesses: Scope of chemical phase-out plan: No evidence of plan for phasing out chemicals of concern Demonstrated track record of introducing viable alternatives to high concern substances: No evidence Disclosure of substances registration and use: Not disclosed MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 23 OF 64 EX P-3588 Page 23 of 64 SVEC OL.DMONS0570665 MONSANTO COMPANY (MON) ESG RATING g CONTROVERSIES: All controversies are assessed as part of the annua! review of a company's ESG rating. MSC! ESG Research tracks controversies for all companies on a regular basis. The Monsanto has been flagged for involvement in controversial events or alleged misconduct. Practices Strategy Scope of chemicals identified for regulation under the management policy: Scope of chemical phase-out plan: Small number of high profile chemicals identified No evidence of plan for phasing out chemicals of concern Programs & Initiatives Disclosure of substances registration and use: Not disclosed Chemical Producers Demonstrated track record of introducing viable alternatives to high concern substances: Extent of substances or products hazard assessments : No evidence Conducts hazard assessments for new substances Controversy Cases Assessment Very Severe Moderate Moderate Moderate Moderate Moderate Headline Environmental Concerns over GMO Crops WHO Agency Declares Glyphosate as "Probably Carcinogenic" to Humans Monsanto Guilty of Chemical Poisoning Roundup-related Injury Lawsuits Monsanto Challenges Moratorium on Cultivation of GMO Crops in Maui, Hawaii EPA Investigation into Human Health Effects of Herbicides Status Ongoing Ongoing Ongoing Ongoing Ongoing Ongoing Last Updated November 2017 December 2017 December 2017 November 2017 April 2017 March 2016 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 24 OF 64 EX P-3588 Page 24 of 64 SVEC OL.DMONS0570666 MONSANTO COMPANY (MON) ESG RATING g Corporate Governance Score Change Quartile Weight (since rating) As of 4.8 -1.1 15.0% Dec 15, 2017 ANALYSIS On September 14, 2016, Monsanto and Bayer AG announced that they had entered into a definitive merger agreement. Pursuant to the terms of the Agreement, Bayer agreed to purchase Monsanto for USD 128 a share in cash in a transaction with an aggregate value of USD 66 billion. Monsanto shareholders approved the proposed transaction and the advisory vote on certain compensation to be received by the NEOs at a special meeting in December 2016. The proposed transaction, as stated in the DEF 14M filed on November 10, 2016, required the approval of a majority of Monsanto's shares outstanding as of the record date for meeting (November 6th). Monsanto disclosed, in a Form 8-l< filing, that this proposal received approximately 75% of shares outstanding, which was approximately 99% of "votes for". The proposal regarding certain compensation to be received by Monsanto NEC's received approximately 96% of shares cast. It was also disclosed in the DEF 14M, that upon the closing of the transaction, it was estimated that Flugh Grant, its Chairman and CEO, would receive a severance qualifying termination of approximately USD 18.8 million. The proposed transaction is still pending the required regulatory ap (fcTj ils, including Hart- Scott- Rodino, and the anticipated closing date is lata ZZJ7. Upon the closing of the transaction, Monsanto will become a wholly-owned subsidiary of Bayer AG and its shares will no longer be publicly traded. Monsanto disclosed in its DEF 14A filed for the January 27, 2017 Annual Meeting, that "until the transaction is completed, we remain a separate and independent company, focused on delivering on its operational plan and key business milestones and continuing to create compelling value for its share owners." At the 2017 Annual Meeting, director nominee Robert Stevens received approximately 11% "votes against" his reelection. On August 12, 2016, the company announced that the board had approved an exclusive forum amendment to the Company bylaws which provides that certain types of shareholder lawsuits may only be filed in a Delaware court. Additional details and data available in the Corporate Governance Details section. Home Market: United States METHODOLOGY NOTE This issue evaluates the extent to which companies' corporate governance practices may pose risks to investors. The score is an absolute assessment of a company's governance on a universally applied 0-10 scale. Each company starts with a "perfect 10" and points are deducted based on the triggering of Key Metrics across Board, Pay, Ownership, and Accounting, ISSUES & RANKING Overall Board Pay Ownership & Control Accounting Global Pctl Rank 36th (Average) 62nd 34th 53rd 11th Home Market Pctl Rank 39th (Average) 53rd 22nd 95th 11th KEY ISSUE SCORE DISTRIBUTION* 31% 18% 12% 8% 4% 0% 0% 0 1 2 3 4 5 12% 12% 6 7 8 9 10 Key Issue Score TOP 5 INDUSTRY LEADERS Givaudan SA 8.6 Clariant AG 8.2 Koninklijke DSM N.V. 8.1 Symrise AG 8 CHR. HANSEN HOLDING A/S 7.7 BOTTOM 5 INDUSTRY LAGGARDS Hitachi Chemical Company, Ltd. 3 TAIYO NIPPON SANSO CORPORATION 2.9 AIR WATER INC. 2.5 PRAXAIR, INC. 2.1 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 25 OF 64 EX P-3588 Page 25 of 64 SVEC OL.DMONS0570667 MONSANTO COMPANY (MON) ESG RATING g Shin-Etsu Chemical Co., Ltd. 1.8 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 26 OF 64 EX P-3588 Page 26 of 64 SVEC OL.DMONS0570668 MONSANTO COMPANY (MON) ESG RATING g Board Global Percentile Rank 62nd (Average) Home Market Percentile Rank 53rd (Average) ANALYSIS The policies and practices of the MONSANTO board fall within the average scoring range relative to global peers. We have flagged this board for potential concerns regarding the previous history of board service for certain directors and notable dissent on director election votes. BOARD PERFORMANCE VS. Global Home Market J i 0 10 20 30 40 50 60 70 SO 90 100 Worst Average Best RISK MANAGEMENT Indicators Board Independence Outside related directors: Total directors: Outside directors: Board independence: Board Leadership CEO Name: Chair / CEO roles combined: Company lacks an independent lead director: Board Skills & Diversity Female directors: Female directors as percent of total: 0 13 12 92.31% Hugh Grant Yes No 3 23.08% MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 27 OF 64 EX P-3588 Page 27 of 64 SVEC OL.DMONS0570669 MONSANTO COMPANY (MON) ESG RATING g Global Percentile Rank 34 (Average) Home Market Percentile Rank 22nd (Below Average) ANALYSIS Executive pay practices at MONSANTO fall into the average scoring range relative to global peers. Areas of particular concern include early vesting provisions in share based awards which offer a poor alignment with shareholder interests. PAY PERFORMANCE VS. Global Home Market 0 10 20 30 40 50 60 70 SO 90 100 Worst Average Best RISK MANAGEMENT Indicators Pay Figures Total Annual Pay: Total Realized Pay: Company fails to disclose specific pay totals for executives: CEO total summary compensation: CEO total summary compensation (currency): Pay Performance Alignment Significant vote against pay practices: Severance & Change of Control Company lacks a clawback policy: 3,863,804.0 9,071,654.0 No 17,048,834.0 USD No No MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 28 OF 64 EX P-3588 Page 28 of 64 SVEC OL.DMONS0570670 MONSANTO COMPANY (MON) ESG RATING g Ownership & Control Global Percentile Rank 53rd (Average) Home Market Percentile Rank 95th (Above Average) ANALYSIS The company's ownership structure and shareholder rights at MONSANTO fa!! within the average scoring relative to global peers. OWNERSHIP & CONTROL PERFORMANCE VS. Global Home Market 0 10 20 30 40 50 60 70 SO 90 100 Worst Average Best RISK MANAGEMENT Indicators Committee Structure Company lacks a fully independent audit committee: Company lacks a fully independent compensation committee: Ownership Structure Insiders (Officers & Directors) % Held: Five % Shareholders % Held: Top Shareholders: Controlling shareholder: Shareholder Rights Company has failed to adopt majority voting standards: Ownership structure deviates from one share one vote: Takeover Provisions Poison pill: No No 0.0% 19.1% There is no principal shareholder at this firm. No No No No MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 29 OF 64 EX P-3588 Page 29 of 64 SVEC OL.DMONS0570671 MONSANTO COMPANY (MON) ESG RATING g Accounting Global Percentile Rank 11 ' (Below Average) Home Market Percentile Rank llt'1 (Below Average) ANALYSIS Based on the company's disclosures and other public information, accounting and financial reporting practices at MONSANTO may warrant close attention from shareholders. We have flagged this company for potential concerns regarding revenue recognition ratios (based on our quantitative assessment) and restatements and/or one-off charges (impairments, write-offs, non-recurring charges). ACCOUNTING PERFORMANCE VS. Global Home Market 0 10 20 30 40 50 60 70 SO 90 100 Worst Average Best RISK MANAGEMENT Indicators Accounting Figures Non-audit fees: Audit fees: Audit fees (currency): Total auditor fees: Total auditor fees (currency): Audit related fees: Audit related fees (currency): Accounting Risks Restatements or special charges in last two years: Accounting investigations in last two years: Qualified auditor opinion, most recent period: Late filings: Material weakness in internal controls: 11.35% 11,400,000.0 USD 14,100,000.0 USD 1,100,000.0 USD Yes No No No No MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 30 OF 64 EX P-3588 Page 30 of 64 SVEC OL.DMONS0570672 MONSANTO COMPANY (MON) ESG RATING g CORPORATE GOVERNANCE CONTROVERSIES Controversy Cases Assessment Minor Minor Headline USD 80 Million Settlement over Alleged Accounting Violations Related to Roundup Rebates USD 80 Million Penalty Over Accounting Violations Status Concluded Concluded Last Updated February 2016 February 2016 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 31 OF 64 EX P-3588 Page 31 of 64 SVEC OL.DMONS0570673 MONSANTO COMPANY (MON) ESG RATING g BUSINESS ETHICS & FRAUD PERFORMANCE :IMH| i V ' A chart is not available because we do not measure exposure on this key issue. TOP 5 INDUSTRY LEADERS AGRIUM INC. 5 AIR PRODUCTS AND CHEMICALS, 5 INC. AIR WATER INC. 5 ALBEMARLE CORPORATION 5 ASHLAND GLOBAL HOLDINGS INC. 5 BOTTOM 5 INDUSTRY LAGGARDS UMICORE S.A. 5 W. R. GRACE & CO. 5 YARA INTERNATIONAL ASA 5 ICL-ISRAEL CHEMICALS LTD. 3.7 MONSANTO COMPANY 2.5 SUMMARY METHODOLOGY NOTE Monsanto is involved in lawsuits alleging the violation of competition laws, excessive royalty payments in Brazil, and has attracted significant opposition for its aggressive patent enforcement methods. Monsanto monitors the use of its patented seeds and seeks legal prosecution of farmers that the company alleges have used the seeds illegally. Farmers who purchase seeds from Monsanto are required to sign a Technology Use Agreement and pay the company a fee based on acreage planted in addition to the cost of the seeds. The agreement gives the company a right to inspect the fields and take samples for three years after the seeds are purchased. Despite the negative public perception of these practices, the company has emerged victorious in numerous lawsuits emphasizing the company's ability to protect its intellectual property. While Monsanto states that it does not sue farmers whose fields inadvertently contain patented traits, the company refused to agree to a request from the Organic Seed Growers and Trade Association to never sue their farmers, a position that was upheld by U.S courts in January 2014. This issue evaluates the extent to which companies may face regulatory or legal risks or loss of investor confidence due to ethics issues such as fraud, executive misconduct, or insider trading. Companies successfully avoiding incident score "5", while companies that have faced controversies in the last three years score lower, based on the severity and type of controversy. Additionally, in April 2012, a court in Rio Grande do Sul, Brazil, ordered Monsanto to pay at least USD 2 billion for allegedly collecting excessive crop royalties from seed harvests of its GM soybeans after ruling that the company's patents on Roundup Ready seeds expired in 2010. However, in August 2013, Monsanto and Brazil's largest soybean cooperative came to an agreement ending the legal dispute MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 32 OF 64 EX P-3588 Page 32 of 64 SVEC OL.DMONS0570674 MONSANTO COMPANY (MON) ESG RATING g over royalty payments. In exchange for promising not to sue the company for royalties collected after the patent expiration, Brazilian soy farmers were given a 16 percent discount on Intacta soybean seeds. As a result of these developments, Monsanto has transitioned to a point-of-delivery payment model that enrolls traders and distributors as the collectors of royalties from farmers in Brazil (11% of sales). The company is beginning to roll out a similar sales model in Argentina (6%) and Paraguay. MANAGEMENT 2.5 01 234567S 9 10 Low Moderate High Controversy Cases Assessment Severe Severe Moderate Minor Minor Minor Headline o Patent Enforcement Practices Brazilian Soy Farmers Royalty Lawsuit India: Withdrawal of Application for Introduction of Bollgard II Roundup Ready Flex Technology African Centre for Biodiversity Opposition to GMO Appeal Board and Minister of Agriculture, Forestry and Fisheries' Decision to Approve Commercialization of GMO Drought-Tolerant Maize Seed; Appeal Ongoing USD 80 Million Penalty Over Accounting Violations USD 80 Million Settlement over Alleged Accounting Violations Related to Roundup Rebates Status Ongoing Ongoing Ongoing Ongoing Concluded Concluded Last Updated September 2017 May 2017 October 2017 May 2017 February 2016 February 2016 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 33 OF 64 EX P-3588 Page 33 of 64 SVEC OL.DMONS0570675 MONSANTO COMPANY (MON) Health & Safety ESG RATING g HEALTH & SAFETY PERFORMANCE Top Quartile 41 Bottom Quartile 0 Second Quartile 4 Third Quartile KEY ISSUE SCORE DISTRIBUTION 28% 28% 0123456789 10 Key Issue Score Low Risk Moderate Risk High Risk TOP 5 INDUSTRY LEADERS CHR. HANSEN HOLDING A/S 10 CRODA INTERNATIONAL PUBLIC 10 LIMITED COMPANY FMC CORPORATION 10 NOVOZYMESA/S 10 Koninklijke DSM N.V. 9.9 SUMMARY This issue does not present significant risks or opportunities to the company and with the assigned weight of 0% does not contribute to the overall ESG rating for the company. BOTTOM 5 INDUSTRY LAGGARDS ICL-ISRAEL CHEMICALS LTD. 4.9 FRUTAROM INDUSTRIES LTD 4.2 MSCI ESG Research provides additional scores on a select set of ESG Issues for all companies on the K+S Aktiengesellschaft 3.7 MSCI World Index. Every company on the index receives scores for the following ESG Issues, regardless of whether they contribute to the overall Company ESG Rating: Carbon Emissions, Water Stress, Toxic Covestro AG 3 Emissions, Labor Management, Health & Safety, Business Ethics, and Anti-Competitive Practices. Each of these issues is researched and analyzed according to ESG Research methodology regardless of ASHLAND GLOBAL HOLDINGS INC. 2.2 assigned weight. Hence, scores for these Issues are fully comparable across all companies or industries. METHODOLOGY NOTE This issue evaluates the extent to which companies may face employee accidents that can lead to production disruptions, litigation, and liabilities. Scores are based on exposure to businesses and geographies facing high accident rates; H&S targets and oversight; and accident rates and fatalities over time and vs. peers. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 34 OF 64 EX P-3588 Page 34 of 64 SVEC OLDMONS0570676 MONSANTO COMPANY (MON) EXPOSURE ESG RATING g 2.5 0 12 3 4 5 6 7 S 9 10 Low Moderate High Key Drivers of Exposure Exposure to: Risk of accidents that can lead to production disruptions, litigation, and liabilities Type of Operations: Percentage of operations in business segments with high/moderate/low level of fatalities and industrial injuries Source: US Occupational Health & Safety Administration (OSHA), No exposure to high risk segments UK Reporting of Injuries, Diseases and Dangerous Occurrences Pesticides and agricultural chemicals Regulations (RIDDOR); Thomson; MSCI ESG Research; company Medical substances and botanical products disclosure Location of Operations: Percentage of operations in countries with high/moderate/low employee fatality rates (total fatalities per 100,000 employees) Argentina EMEA, Brazil, other countries, Mexico, USA, Asia Pacific, USA (Iowa state), USA (Idaho state), USA (Louisiana state), USA (Wyoming state) m Canada Source: International Labour Organization, Thomson; MSCI ESG Research; company disclosure MANAGEMENT T 4.9 0 12 3 4 5 6 7 S 9 10 Low Moderate High PRACTICES: Overall, the company's employee health and safety management programs appear to be minimal. Select contributors to this assessment include: Strengths: H&S strategy and performance is managed by Sustainability Committee, H&S task force or risk officer: Yes H&S policy is group-wide: Yes Evidence of Recognized Certification: ftes Weaknesses: H&S strategy and performance is managed byCEO: Not Disclosed H&S strategy and performance is managed bySenior Executive or Executive Committee: Not Disclosed H&S strategy and performance is managed byan executive body: Not Disclosed MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 35 OF 64 EX P-3588 Page 35 of 64 SVEC OL.DMONS0570677 MONSANTO COMPANY (MON) ESG RATING g PERFORMANCE: Performance track record of Monsanto is weak. CONTROVERSIES: Ali controversies are assessed as part of the annual review of a company's ESG rating. MSCi ESG Research tracks controversies for all companies on a regular basis. There is no evidence of the Monsanto current involvement in prominent controversial events or alleged misconduct. Performance Operations Performance on Health & Safety Metrics Relative to Peers (0-10 Score, 0.0 0=worst, 10=best): Total Recordable Injury Rate Year Total Recordable Injury Rate 2008 0.63 Total Recordable Injury Unit per 200,000 hours 2009 0.71 per 200,000 hours 2010 0.66 per 200,000 hours 2011 0.7 per 200,000 hours 2012 0.58 per 200,000 hours 2013 0.58 per 200,000 hours 2014 0.59 per 200,000 hours 2015 0.6 per 200,000 hours Details total recordable rate (TRR) - Employee and Supervised Contractors total recordable rate (TRR) - Employee and Supervised Contractors total recordable rate (TRR) - Employee and Supervised Contractors total recordable rate (TRR) - Employee and Supervised Contractors total recordable rate (TRR) - Employee and Supervised Contractors total recordable rate (TRR) - Employee and Supervised Contractors total recordable rate (TRR) - Employee and Supervised Contractors total recordable rate (TRR) - Employee and Supervised Contractors Total Recordable Injury Rate (per million hours) 3.15 3.55 3.3 3.5 2.9 2.9 2.95 3.0 Fatalities Year Fatalities Contractor Fatalities Employee Fatalities Details 2011 2 2012 2 Practices Governance and Strategy Evidence of Recognized Certification: Yes MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 36 OF 64 EX P-3588 Page 36 of 64 SVEC OL.DMONS0570678 MONSANTO COMPANY (MON) ESG RATING g What executive body is responsible for H&S strategy and performance? H&S strategy and performance is managed by Sustainability Yes Committee, H&S task force or risk officer: Health & safety policy H&S policy is group-wide: Yes Targets Target to improve H&S performance: There is some evidence the company has targets MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 37 OF 64 EX P-3588 Page 37 of 64 SVEC OL.DMONS0570679 MONSANTO COMPANY (MON) Labor Management OIO ohoed OEOHOHO QQQ LABOR MANAGEMENT PERFORMANCE f Top Quartile 0 Bottom Quartile Second Quartile 6 Third Quartile ESG RATING g Score Change Quartile Weight (since rating) As of 7.3 n/a 0.0% May 12, 2017 KEY ISSUE SCORE DISTRIBUTION 21% 0123456789 10 Key Issue Score TOP 5 INDUSTRY LEADERS YARA INTERNATIONAL ASA 9.6 Givaudan SA 9.2 TAIYO NIPPON SANSO CORPORATION 8.9 JSR Corporation 8.8 Hitachi Chemical Company, Ltd. 8.2 BOTTOM 5 INDUSTRY LAGGARDS SUMMARY Linde Aktiengesellschaft 3.8 This issue does not present significant risks or opportunities to the company and with the assigned weight of 0% does not contribute to the overall ESG rating for the company. L'AIR LIQUIDE SOCIETE ANONYME 3.7 POUR L'ETUDE ET SEXPLOITATION DES PROCEDES GEORGES CLAUDE MSCI ESG Research provides additional scores on a select set of ESG Issues for all companies on the MSCI World Index. Every company on the index receives scores for the following ESG Issues, regardless ASHLAND GLOBAL HOLDINGS INC. 2.2 of whether they contribute to the overall Company ESG Rating: Carbon Emissions, Water Stress, Toxic Emissions, Labor Management, Health & Safety, Business Ethics, and Anti-Competitive Practices. Each FRUTAROM INDUSTRIES LTD 1.8 of these issues is researched and analyzed according to ESG Research methodology regardless of assigned weight. Hence, scores for these Issues are fully comparable across all companies or Covestro AG 1.3 industries. METHODOLOGY NOTE This issue evaluates the extent to which companies may face workflow disruptions due to labor unrest or reduced productivity due to poor job satisfaction. Scores are based on exposure to regions facing labor unrest, size of workforce, and corporate restructuring / layoffs; workforce policies, benefits, training, and employee engagement; and labor-related controversies. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 38 OF 64 EX P-3588 Page 38 of 64 SVEC OL.DMONS0570680 MONSANTO COMPANY (MON) ESG RATING g EXPOSURE 1m 6.2 0 12 3 4 5 6 7 S 9 10 Low Moderate High Key Drivers of Exposure Exposure to: Risk of workflow disruptions due to labor unrest, or reduced productivity due to poor job satisfaction Type of Operations: Percentage of operations in business segments with high/moderate/low labor intensities, as measured by average sales per employee of industries Medical substances and botanical products Pesticides and agricultural chemicals No exposure to low risk segments Source: Thomson; MSCI ESG Research; company disclosure Location of Operations: Percentage of operations in countries with high/moderate/iow likelihood of labor unrest (based on historic precedent} EMEA, Argentina, Brazil, Canada other countries, Mexico, USA, Asia Pacific, USA (Iowa state), USA (Idaho state), USA (Louisiana state), USA (Wyoming state) No operations in markets with low risks Source: International Labour Organization; Thomson; MSCI ESG Research; company disclosure Additional Drivers of Exposure Layoffs Events Major Layoffs: No Size and Composition of Workforce Number of employees: 20,800 Number of Employees Year Number of employees Part time workers (%) Contract or temporary workers (%) Estimated Part time/contract % 2011 20,600 2010 21,400 2013 21,900 2012 21,500 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED, ESG RATINGS REPORT | PAGE 39 OF 64 EX P-3588 Page 39 of 64 SVEC OLDMONS0570681 MONSANTO COMPANY (MON) ESG RATING g Year Number of employees Part time workers (%) Contract or temporary workers (%) Estimated Part time/contract % 2014 22,400 2008 21,700 2015 22,500 2009 22,900 2016 20,800 2.0% MANAGEMENT 6-5 01234567S9 1G Low Moderate High PRACTICES: Overall, the company's employee management practices appear to be minimal. Select contributors to this assessment include: Strengths: Evidence of Anti-Discrimination/Diversity and Inclusion policy: Yes Evidence of child labor provision in the internal policy: Yes Evidence of forced labor provision in the internal policy: Yes Evidence of freedom of association provision in the internal policy: Yes Evidence of collective agreements: Yes Weaknesses: Estimate Key: Percentage of workforce covered by trade unions/ collective agreements: Estimatin' CONTROVERSIES: All controversies are assessed as part of the annual review of a company's ESG rating. MSCI ESG Research tracks controversies for all companies on a regular basis. The Monsanto has been flagged for involvement in controversial events or alleged misconduct. Performance External recognition as employer of choice (last three years): Yes, more than one award in the last year External recognition - details Year Awarding authority name Title of the Award 2014 Corporate Responsibility Magazine 100 Best Corporate Citizens for 2014 2014 Fortune Magazine 2014 list of "World's Most Admired Companies." 2014 2014 Great Place To Work ) Monsanto #8 World's Best Multinational Workplaces #6 Top Employers 2015 Golden Peacock Award Sustainability 2015 DOLE, Philippines DOLE Awards 2015 Newsweek Green Rankings 2015 Malaysian International Chamber of Commerce Malaysian International Corporate Ethics Award 2015 Corporate Responsibility Magazone 100 Best Corporate Citizens for 20105 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 40 OF 64 EX P-3588 Page 40 of 64 SVEC OL.DMONS0570682 MONSANTO COMPANY (MON) Employee turnover Year Annual employee turnover (%) Details 2016 Practices Strategy Percentage of workforce covered by trade unions/ collective agreements: Estimate Key: Percentage of workforce covered by trade unions/ collective agreements: Evidence of collective agreements: Non-compensation benefits including pension and retirement: 24.0% o Estimated Yes Scope not determinable Controversy Cases Assessment Minor Headline Status Purported Class Action by Migrant Farmworkers over Alleged FLSA Violations due to Failure to Pay Ongoing Minimum Wage ESG RATING g Last Updated August 2017 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 41 OF 64 EX P-3588 Page 41 of 64 SVEC OL.DMONS0570683 MONSANTO COMPANY (MON) Anticompetitive Practices ESG RATING g ANTICOMPETITIVE PRACTICES PERFORMANCE TOP 5 INDUSTRY LEADERS A chart is not available because we do not measure exposure on this key issue. AGRIUM INC. 5 ALBEMARLE CORPORATION 5 ASHLAND GLOBAL HOLDINGS INC. 5 AXALTA COATING SYSTEMS LTD. 5 Akzo Nobel N.V. 5 BOTTOM 5 INDUSTRY LAGGARDS UMICORE S.A. 4.2 AIR PRODUCTS AND CHEMICALS, 3.7 INC. L'AIR LIQUIDE SOCIETE ANONYME 3.7 POUR L'ETUDE ET SEXPLOITATION DES PROCEDES GEORGES CLAUDE Linde Aktiengesellschaft 3.7 SUMMARY PRAXAIR, INC. 3.7 This issue does not present significant risks or opportunities to the company and with the assigned weight of 0% does not contribute to the overall ESG rating for the company. MSCI ESG Research provides additional scores on a select set of ESG Issues for all companies on the MSCI World Index. Every company on the index receives scores for the following ESG Issues, regardless of whether they contribute to the overall Company ESG Rating: Carbon Emissions, Water Stress, Toxic Emissions, Labor Management, Health & Safety, Business Ethics, and Anti-Competitive Practices. Each of these issues is researched and analyzed according to ESG Research methodology regardless of assigned weight. Hence, scores for these Issues are fully comparable across all companies or industries. METHODOLOGY NOTE This issue evaluates the extent to which companies may face regulatory risks relating to anti-competitive practices. Companies successfully avoiding incident score "5", while companies that have faced controversies in the last three years score lower, based on the severity and type of controversy. MANAGEMENT T 4.2 0 12 3 4 5 6 7 S 9 10 Low M ode rate High MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 42 OF 64 EX P-3588 Page 42 of 64 SVEC OL.DMONS0570684 MONSANTO COMPANY (MON) Controversy Cases Assessment Moderate Headline Status India: Investigation Into Alleged Unfair Sublicensing Agreement Conditions for Bt Cotton TechnologyOngoing ESG RATING g Last Updated December 2017 MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 43 OF 64 EX P-3588 Page 43 of 64 SVEC OL.DMONS0570685 MONSANTO COMPANY (MON) Tax Transparency ESG RATING g ANALYSIS Indicators Tax Gap Estimated Effective Tax Rate Estimated Statutory Tax Rate Estimated Tax Gap Revenue Foreign Revenue Confidence Confidence Level of Estimation METHODOLOGY NOTE 27.8% 36.0% 8.2% 40.7% High This issue evaluates the extent to which companies' estimated effective income tax rate may be misaligned with revenue-weighted statutory rates in countries of operation. The score is an absolute assessment of a company's tax transparency and payments on a universally applied 0-10 scale. Each company starts with a "perfect 10" and points are deducted based on the size of the tax gap and any involvement in tax-related controversies. Confidence Level refers to the degree of granularity of reported data and frequency of loss-making Low confidence level indicates disclosure of revenue primarily by regions rather than countries or that the company experienced losses in at least two of the last five years. A negative tax gap indicates that the company's estimated effective rate is greater than its estimated statutory tax rate. A negative estimated effective tax rate may indicate that the company is receiving or claiming tax credits while reporting net profit. A negative tax gap does not necessarily indicate that the company is paying excess taxes. There is no score deduction for a negative tax gap. KEY ISSUE SCORE DISTRIBUTION* 47% 01 2 3456789 10 Key Issue Score TOP 5 INDUSTRY LEADERS AIR WATER INC. 10 KANSAI PAINT CO.,LTD. 8 CELANESE CORPORATION 8 TAIYO NIPPON SANSO CORPORATION 8 CF INDUSTRIES HOLDINGS, INC. 8 BOTTOM 5 INDUSTRY LAGGARDS NIPPON PAINT HOLDINGS CO.,LTD. 5 YARA INTERNATIONAL ASA 5 Koninklijke DSM N.V. 5 ALBEMARLE CORPORATION 4 UPL LIMITED 3 MANAGEMENT MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 44 OF 64 EX P-3588 Page 44 of 64 SVEC OL.DMONS0570686 MONSANTO COMPANY (MON) ESG RATING g OTHER RISKS & OPPORTUNITIES Growth of Glyphosate-Resistant Weeds Threatens Sales of Flagship Roundup Product, Adds to Subsidy Costs: Roundup Ready crops account for 90% of the soybeans and 70% of the corn and cotton grown in the US. However, concerns over Roundup-resistant weeds have escalated in recent years and could potentially reduce sales of Roundup Ready crops and glyphosate-based herbicides. In an annual survey conducted by Stratus Agri-Marketing, approximately half of all U.S. farmers reported the presence of glyphosate-resistant weeds on their farm in 2013, which is up from 25% in 2010. The company's Roundup Ready Plus Weed Management Solutions program provides incentives to offset extra herbicide costs for farmers, but the growth of such weeds has the potential to increase costs down the line and reduce the economic benefits of using Roundup Ready seeds. Although the cost and duration of the program is unclear, we do not view this as a sustainable solution to weed-resistance. However, in January 2015 the USDA approved Monsanto's dicamba-resistant soy and cotton, which may reduce the company's vulnerability to the emergence of glyphosate-resistant weeds. As a long term solution, Monsanto is researching alternatives in the form of an RNA interference spray that would deactivate the plant gene responsible for glyphosate resistance. Nevertheless, the presence of tolerant weeds could have a long-term impact on the company's competitive position in these markets. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 45 OF 64 EX P-3588 Page 45 of 64 SVEC OL.DMONS0570687 MONSANTO COMPANY (MON) ESG RATING g CONTROVERSIES DETAIL Here you will find the narratives for all controversies relevant to the ESG Ratings issues covered for the company in addition to those controversies that do not map to the ESG Ratings issues. CONTROVERSY CARD NUMBER OF CONTROVERSIES BY PILLAR 20 19 NUMBER OF CONTROVERSIES BY ASSESSMENT CONTROVERSIES Very Severe: Indicates an action by a company that results in a very large impact on society and/or the environment. Severe: Indicates an action by a company that results in a large impact on society and/or the environment. Moderate: Indicates an action by a company that results in a moderate impact on society and/or the environment. Minor: Indicates an action by a company that results in a low impact on society and/or the environment. None: There is no evidence that a company is involved in any controversy. Very Severe Severe Moderate Minor ENVIRONMENTAL CONTROVERSIES Very Severe Controversies Date: November 2017 Assessment: Very Severe Status: Ongoing Environmental Concerns over GMO Crops Monsanto een heavily criticized over its continued development of genetically modified (GM) crops. Claims regarding the damage to biodivei , rought about by the company's GM products have been prevalent. Environmentalists have alleged that the sustained cultivation of Monsanto's herbicide-resistant crops contributed to the significant decline of the population of natural pollinators, including certain species of bees and butterflies. In addition, local farmers have expressed concerns regarding GM crop contamination, alleging that the exposure of non-GM crop fields to strains of genetically engineered crops has resulted in the decline and eradication of indigenous and local crops. Monsanto's GM products continue to face opposition from communities worldwide, as well as local and international NGOs in more than 50 countries. Regulatory bodies in Europe and the US have also challenged the company's promotion of the controversial crops. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 46 OF 64 EX P-3588 Page 46 of 64 SVEC OL.DMONS0570688 MONSANTO COMPANY (MON) ESG RATING g UPDATES: NGO and Community Opposition As of August 2017, numerous international and local non-governmental organizations had active campaigns against Monsanto. These included: the Organic Seed Growers and Trade Association, People's Health Network, Save Our Crops Coalition, Biodiversidadla, Friends of the Earth, Combat Monsanto, Organic Consumers Association, March Against Monsanto, GM Watch and the Non-GMO Project, among others Since May 2013, international group March Against Monsanto (MAM) launched global protest actions against Monsanto's GM crops. The demonstrations ensued in approximately 400 cities in 57 countries with participants numbering in hundreds of thousands. Protesters highlighted concerns, including the mandatory labeling of GM products; the alleged negative health effects resulting from the consumption of GM crops; as well as the purported damage to biodiversity and ecological disruption the controversial products cause with their entry into local agriculture in various countries. In August 2013, the Save Our Crops Coalition, a group of farmers based in Indiana, filed a comment with the U.S. Department of Agriculture urging a more in-depth review of Monsanto's genetically modified soybeans and cotton. In 2017, the ban on the cultivation and experimental planting of transgenic corn in Mexico, which was imposed in 2013, remained in place. A Mexican federal court upheld the ruling in January 2017. Subsequently, Monsanto's efforts to appeal the ruling continued in May 2017, as the Suprema Corte de Justicia de la Nacion, Mexico's Supreme Court, denied the company's demand for protection against the transgenic corn restrictions. In November 2017, a collegiate court ruled to maintain the transgenic corn ban in Mexico. In 2011, NGO opposition to the planting of GM crops in Mexico continued. Monsanto was given authorization from the Mexican government to plant GM yellow corn resistant to the herbicide glyphosate as a part of a pilot program in Tamaulipas, a region home to 16 of the 59 remaining strains of native corn. According to environmental groups, Monsanto had engaged in intense lobbying in favor of the introduction of GM corn in Mexico. In addition, a former president of Monsanto allegedly held meetings with the governor of Chaco, Argentina, to promote the use of GM food in the province. According to a representative of the NGO People's Health Network, this led to less criticism from authorities regarding the allegedly harmful effects of pesticides. According to the Commission of Investigation of Contaminants of the Chaco Water, child cancer rates had tripled and malformation in newborn babies had increased by 400 percent in the Leonesa area due to the pesticides used in conjunction with the GM crops. In March 2011, a group of U.S. organic agricultural organizations, headed by the Organic Seed Growers and Trade Association, filed a lawsuit in a federal district court in Manhattan, New York against Monsanto to challenge its patents on genetically modified seeds. The plaintiffs launched the legal action preemptively to protect themselves from being accused of patent infringement should they become contaminated by Monsanto's GM seeds. The district court dismissed the case in January 2012 ruling that the farmers lacked legal standing regarding the concerns over the potential contamination and consequential economic impact. The court also declared that the decision was made on grounds that the complainants' crops were not yet contaminated despite recognizing that some contamination was "inevitable." The plaintiffs subsequently brought the lawsuit to the Court of Appeals for the Federal Circuit in Washington, which also dismissed the case in June 2013 on the same grounds. In the proceeding, the appeals court highlighted that the company, "made binding assurances that it will not 'take legal action against growers whose crops might inadvertently contain traces of Monsanto biotech genes (because, for example, some transgenic seed or pollen blew onto the grower's land)."' In September 2013, the plaintiffs appealed to the US Supreme Court to get full protection from potential infringement. In January 2014, the court refused to hear the case. Regulatory Opposition According to the NGO Non-GMO Project, more than 60 countries including Australia, Japan, and all the members of the European Union have partial if not absolute restrictions on GM crops. As of March 2016, approximately 19 European countries have opted out from cultivating GMO crops. These include Austria, Belgium for the Wallonia region, Britain for Scotland, Wales and Northern Ireland, Bulgaria, Croatia, Cyprus, Denmark, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland and Slovenia. As of April 2016, six European countries have imposed a complete ban on Monsanto's genetically modified strain of maize called MON810: Britain, Germany, Bulgaria, Austria, Luxembourg, Poland, Italy and Romania. France had previously banned MON810, but a court subsequently overturned the supporting legislation. Nevertheless, the French Agriculture Ministry stated that the court's decision did not permit GM maize to be cultivated in the country. In September 2015, France declared that it will exercise its opt-out rights under the EU's revised legislation for GM cultivation. The country has declared opposition to the cultivation of approximately nine GM maize strains manufactured by Monsanto, Du Pont, and Syngenta. In the same month, Russia also declared a ban on the use of genetically modified organisms in food production. In January 2015, the European Parliament passed a legislation allowing EU member states to individually decide on restricting or prohibiting the cultivation of GMO crops in their territory. The law also allows national governments to opt out from growing GMO crops that have already been authorized by the EU. In May 2013, the United States Department of Agriculture (USDA) announced that it would not allow the production of Monsanto's dicamba-resistant cotton and soybeans, as well as Dow Chemical's corn and soybeans until at least 2015. The department stated that the products could damage the environment and that it would need to produce complete environmental assessments prior to issuing approval. In September 2009, a federal judge ruled that the USDA had unlawfully approved Monsanto's Roundup Ready sugarbeets for use by farmers. The judge ruled that a full environmental assessment of the sugar beets had not been completed at the time that the sugar beets were approved. The case was brought to trial by the Center for Food Safety, a consumer and environmental advocacy group that sought to ban GM sugarbeets. The group's primary concern was the cross-pollination of the GMO beets with native species. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 47 OF 64 EX P-3588 Page 47 of 64 SVEC OL.DMONS0570689 MONSANTO COMPANY (MON) ESG RATING g Moderate Controversies Date: December 2017 Assessment: Moderate Status: Ongoing Monarch Population Decline In February 2015, environmental group Center for Food Safety (CFS) released a report on the purported negative impact of the cultivation of herbicide-resistant genetically modified crops on the monarch butterfly. According to the report, the monarch population has decreased by as much as 10 percent in the last 20 years due to the eradication of milkweed, the primary food source and larval host plant for the butterfly species' caterpillar. Glyphosate which is used in conjunction with GM corn and soybeans is particularly lethal to milkweed. The CFS report stipulated that the sustained use of the herbicide resulted in the loss of approximately 99 percent of milkweed in the Midwestern croplands in the U.S. which is the main breeding habitat of monarchs. In light of the findings, CFS, the Center for Biological Diversity, the Xerces Society for Invertebrate Conservation along with biologists specializing in the study of monarchs, filed a legal petition with the U.S. Fish and Wildlife Service to protect monarchs as threatened under the Endangered Species Act (ESA). In December 2014, the institution announced that the ESA listing may be warranted. In May 2015, Monsanto pledged to donate USD 4 million to initiatives aimed at preserving the monarch butterfly. According to the company, USD 3.6 would be donated to the National Fish and Wildlife Foundation's Monarch Butterfly Conservation Fund and USD 400,000 will be contributed to experts and groups working to protect the butterfly. As of August 2017, Monsanto continued to collaborate with various environmental NGOs and academic institutions in launching initiatives aimed at protecting the monarch and restoring its habitat. The company has pledged to participate in several environmental programs including the expansion and improvement of more than 10 million acres of land by 2025 as part of a habitat distribution for the butterfly species; as well as the provision of funding to conservation groups to further restore sustainable quality milkweed and pollinator across the critical range for monarch breeding and migration. Bee Popula ..Decline Monsanto continued to face allegations of its contribution to the worldwide decline in bee population. NGOs and environmental experts have identified the company's herbicide-resistant genetically modified crops and the pesticides used to treat them as among the causes of colony collapse disorder (CCD) - a phenomenon which causes the death of a colony due to the disappearance of majority of the worker bees in a hive, leaving behind a queen and food reserves but a few nurse bees to care for the remaining immature bees and the queen. CCD has been attributed to neonicotinoids which are commonly used to treat GM corn and soybeans. Environmental scientists who have conducted studies on bee population in the U.S. and Europe have claimed that the substances attack the central nervous system of insects, resulting in memory impairment, damaged navigational capabilities, and paralysis. Also associated with bee fatalities are GMO crops engineered to produce natural insecticides. Such GM varieties manifest the harmful substances in proteins within plant pollen and nectar during cultivation and cause poisoning to adult bees and their larvae. Studies conducted on Monsanto's Mon810 corn revealed that the insecticide Bacillus thuringiensis (Bt), which it produces, allegedly damages the digestive and immune system of bees. Bt purportedly reduces bees' capacity to eat then destroys their intestinal wall, eventually exposing the insect to spores and bacteria that would have been contained within the digestive tract. As of August 2017, Monsanto continued the implementation of various initiatives aimed at improving honey bee health. These include: allocation of resources for land development to establish and expand healthy pollinator habitats; establishment of Honey Bee Advisory Council to facilitate honey bee health research; formulation of a seed treatment insecticide stewardship plan to manage risks to beneficial insects such as bees; collaboration with academics, environmental NGOs, and farmers to identify issues and development pathways for honey bee health. Source: 25 Nov 2017_La Jornada; 07 Aug 2017_Monsanto; 12 May 2017_La Jornada; 30 Jan 2017_Reuters; 01 Feb 2017_Monsanto Corporate Communication; 15Jun 2016_Friends of the Earth; 15 Apr 2016_Reuters; 18 Mar 2016_GMO-Free Europe; 09 Feb2016_Co mpany Communication; 05 Oct 2015_EcoWatch; 20 Sep 2015_The Moscow Times; 17 Sep 2015: _Reuters; 13 Jan 2015_BBC News; 31 Mar 2015_ASSOCIATED PRESS STATE & LOCAL; 24 Feb 2015_GMO-free Europe (website); 04 Feb 2015_Monarchs in Peril (Consumer F ood Safety);; 13 May 2014_Business Insider; 04 Mar 2014_GuardianLV; 2014/3/15_RFI; 2014/3/15_Reuters; 2013/10/14_The Asheville Citizen-Times (North Carolina); 2013/10/12_Naples Daily News; 2013/10/12_FOX-2 KTVI (St. Louis); 2013/10/ll_0range County Regist er (California); 2013/10/04_Progressive Media-Company News; 2013/07/28_The Hawk Eye (Burlington, lowa);2013/05/ll_The New Y orkTimes; 01 Apr2013_Greenpeace; 2011/08/31_Reuters, 2011/09/06_Greenpeace Luxembourg, 2011/08/17_biodiversidadla.org, 20 11/03/3l_radiomundoreal.fm, 201 l/03/29_cipamericas.org, 2011/03/10_www.paginal2.com.ar Lawsuits over Alleged Contamination of Pacific Northwest Fields with Genetically Modified Wheat Monsanto has agreed to pay approximately USD 2.4 million to settle litigation related to the alleged contamination of wheat fields in certain U.S. Pacific Northwest states by its genetically modified (GM) wheat. The GM wheat variant was not approved by the United States Department of Agriculture (USDA) for cultivation. After the crop was discovered in Oregon and Washington in 2013, affected wheat farmers launched legal action. Subsequently, all related lawsuits were consolidated under one case in the Federal District Court of Kansas. The settlement does not resolve contamination claims in Arkansas. As of March 2016, these remained ongoing. UPDATES: 12 Dec 2017: No new information available. 05 Aug 2016: Quarantined Washington state wheat tests negative for GMO: USDA. (Reuters) 29 Jul 2016: USDA confirms unapproved GMO wheat found in Washington state. (Reuters) [accessed on Mar 7 2016]: Newsroom. (Monsanto website) As of March 2016, litigation on the grain contamination claims in Arkansas was ongoing. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 48 OF 64 EX P-3588 Page 48 of 64 SVEC OL.DMONS0570690 MONSANTO COMPANY (MON) ESG RATING g Date: November 2017 Assessment: Moderate Status: Ongoing Date: August 2017 Assessment: Moderate Status: Ongoing 18 Mar 2015: Monsanto to pay $350K to settle more wheat-related lawsuits. (ASSOCIATED PRESS FINANCIAL WIRE) In addition to the settlement amount the company pledged to make donations of USD 50,000 to agricultural schools at land grant colleges in Kansas, Missouri, Illinois, Oklahoma, Texas, Louisiana and Mississippi. Monsanto also declared that as of March 2015, there is one active wheat contamination lawsuit in Arkansas that remains pending. 18 Mar 2015: Monsanto to pay $350K to settle more wheat-related lawsuits. (ASSOCIATED PRESS FINANCIAL WIRE) In addition to the settlement amount the company pledged to make donations of USD 50,000 to agricultural schools at land grant colleges in Kansas, Missouri, Illinois, Oklahoma, Texas, Louisiana and Mississippi.Monsanto also declared that as of March 2015, there is one active wheat contamination lawsuit in Arkansas that remains active. 21 Jan 2015: Monsanto reaches $2.4M settlement with wheat farmers in Pacific Northwest in. (CANADIAN GOVERNMENT NEWS) BACKGROUND In May 2013, a farmer from northeastern Oregon filed a report to the USDA stating that he discovered a strain of genetically engineered, herbicide-resistant wheat after using Monsanto's Roundup Ready pesticide on his field. After conducting an investigation, the USDA announced that the wheat discovered by the farmer was identical to the wheat variant which underwent testing as part of Monsanto's research from 1998 to 2004. However, the genetically modified wheat was not approved by the USDA. The Japanese and Korean Government restricted the shipment of Western White wheat following the May 2013 announcement. In response to the Oregon discovery, Monsanto claimed that it had discontinued its research on the genetically modified wheat in question and that the re-emergence of the variant was unusual, as all the seeds involved in its research could not have survived in the soil for more than two years. Further, the company stated that its research was not conducted in northeastern Oregon, and that wheat pollen only moves approximately 30 feet from its source. In June 2013, as part of a larger investigation into the genetically modified wheat previously found in northeastern Oregon, Monsanto tested 30,000 seed samples of 50 different wheat varieties in Washington and Oregon. The company concluded that none of the wheat varieties it tested proved to be genetically modified, and that the discovery of genetically modified wheat in northeastern Oregon was an isolated incident. The discovery of GM wheat in Oregon sparked numerous lawsuits from farmers. In June 2013, two class action lawsuits were filed against Monsanto at the United States District Court in Spokane alleging that the discovery of genetically engineered wheat in Oregon negatively affected their businesses. The first lawsuit was filed by farmers representing two wheat farms in Eastern Washington, Wahl Ranch in Adams County and Dreger Enterprises in Lincoln County. The damages of this lawsuit would be determined by the court. A separate lawsuit was filed by the Center for Food Safety on behalf of Northwest wheat farmers. Clarmar Farms and another wheat farmer were also named as plaintiffs of the lawsuit. Later in the month, a wheat farmer from Kansas filed a lawsuit seeking class action status against the company. The lawsuit alleged that the company's genetically modified wheat infiltrated non-genetically engineered wheat. Since genetically engineered wheat was not approved by the USDA, the cost of producing wheat increased and prices plummeted. Monsanto reported that as of November 2013, the USDA's investigation on the claims with regard to the specific GM crop remains ongoing and the agency indicated that civil and criminal penalties could be imposed if circumstances warranted. According to the company, lawsuits filed against it concerning the wheat variety in question have been consolidated in the Federal District Court of Kansas. Source: 05 Aug 2016_Reuters; 2013/ll/30_Monsanto 2013 10-Q Report; 2013/06/06_The Seattle Times; 2013/06/05_The Wall Str eet Journal; 2013/06/04_RT; 2013/06/03_The Wall Street Journal San Diego City Lawsuit: Alleged Liability for San Diego Bay PCB Contamination Monsanto along with two chemical manufacturers have been named defendants in a lawsuit filed by the City of San Diego and the San Diego Unified Port District for alleged contamination of the San Diego Bay. The plaintiffs claimed that the companies were liable for the release of polychlorinated biphenyls PCB) into the bay. The complainants also accused Monsanto of continuing to manufacture and market PCBs despite having the knowledge that it was hazardous to the environment. The lawsuit included the request for a jury trial, punitive damages, compensation for cleanup as well as damages for San Diego's purported natural resource utility decrease. UPDATES: 29 Nov 2017: City of San Diego Defeats Monsanto's Motion to Dismiss PCB Contamination Lawsuit. (PLUS COMPANY UPDATES(PCU)) 12 Sep 2016: SAN DIEGO FIGHTS BROAD INTERPRETATION OF COURT'S RULING IN PCB RUNOFF CASE. (SUPERFUND REPORT) 25 Apr 2016: JUDGES REJECT CONSOLIDATION OF WEST COAST CITIES' PCB TORT CASES. (SUPERFUND REPORT) 28 Mar 2016: MONSANTO ARGUES WEST COAST PCB CASES TOO DIFFERENT FOR CONSOLIDATION. (SUPERFUND REPORT) 03 Feb 2016: CITIES SEEK MULTIDISTRICT LITIGATION FOR NOVEL PCB SUITS AGAINST MONSANTO. (ENVIRONMENTAL POLICY ALERT) 17 Mar 2015: San Diego sues Monsanto over PCB pollution. (ST. LOUIS BUSINESS JOURNAL) Source: 29 Nov 2017_PLUS COMPANY UPDATES(PCU); 12 Sep 2016_SUPERFUND REPORT Washington State: Lawsuit over Alleged Contamination of State's Natural Resources with PCB Monsanto, along with two chemical manufacturers, were named as defendants in a lawsuit filed by the State of Washington in the King's County Superior Court for alleged contamination of the state's natural resources with polychlorinated biphenyls (PCB). The state sought damages and cleanup costs for the companies' alleged negligence and concealment of the environmental and health risks associated with PCBs. UPDATES: 14 Aug 2017: FEDERAL JUDGE REMANDS WASHINGTON'S MONSANTO PCB CASE TO STATE COURT. (SUPERFUND REPORT) MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 49 OF 64 EX P-3588 Page 49 of 64 SVEC OL.DMONS0570691 MONSANTO COMPANY (MON) ESG RATING g Date: February 2017 Assessment: Moderate Status: Ongoing Minor Controversies Date: September 2017 Assessment: Minor Status: Ongoing Date: August 2017 Assessment: Minor Status: Ongoing Date: April 2017 Assessment: Minor Status: Ongoing Date: February 2017 Assessment: Minor Status: Concluded SOCIAL CONTROVERSIES Severe Controversies Date: September 2017 Assessment: Severe Status: Ongoing 09 Aug 2017: Monsanto continued selling PCBs for years despite knowing health risks, archives reveal. (The Guardian) 13 Mar 2017: MONSANTO FIGHTS PUSH TO REMAND WASHINGTON PCB CLAIMS TO STATE COURT. (SUPERFUND REPORT) 09 Dec 2016: Washington state sues Monsanto over PCB damages, cleanup costs. (Reuters) Source: 14 Aug 2017_SUPERFUND REPORT; 09 Aug 2017_The Guardian; 13 Mar 2017_SUPERFUND REPORT Seattle City Lawsuit: Alleged Contamination of Local Water Sources with PCB Monsanto and three of its subsidiaries have been named defendants in a lawsuit filed by the City of Seattle for allegedly contaminating the city's drainage system and the Duwamish River with polychlorinated biphenyls (PCB). According to the plaintiff, PCB contamination was detected in 20,000 acres that drain to the Lower Duwamish, a federal Superfund site, and in areas that drain to the East Waterway adjacent to Harbor Island, a separate federal Superfund site. UPDATES: 28 Feb 2017: Judge won't dismiss Seattle's suit against Monsanto. (THE SEATTLE TIMES) 24 Feb 2017: Washington: City wins key test in Monsanto suit over PCBs. (US OFFICIAL NEWS) 25 Apr 2016: JUDGES REJECT CONSOLIDATION OF WEST COAST CITIES' PCB TORT CASES. (SUPERFUND REPORT) 28 Mar 2016: MONSANTO ARGUES WEST COAST PCB CASES TOO DIFFERENT FOR CONSOLIDATION. (SUPERFUND REPORT) 03 Feb 2016: CITIES SEEK MULTiDISTRiCT LITIGATION FOR NOVEL PCB SUITS AGAINST MONSANTO. (ENVIRONMENTAL POLICY ALERT) 26 Jan 2016: City Sues to Hold Monsanto Accountable for Toxic PCBs. (TARGETED NEWSSERVICE) Source: 28 Feb 201/ I HE SEATTLE TIMES Port of Portland Lawsuit: Alleged Contamination of Two Local Rivers with PCB UPDATES: 28 Sep 2017: Portland's Lawsuit Against Monsanto Proceeds, With Some Claims Dismissed. (EARTHFIX (OREGON)) 05 Jan 2017: Port Of Portland Files Lawsuit Against Monsanto. (EARTHFIX (OREGON)) Source: 28 Sep 2017_EARTHFIX (OREGON); 05 Jan 2017_EARTHFIX (OREGON) Hartford City Lawsuit: Alleged Contamination of School Building with PCB UPDATES: 18 Aug 2017: US District Court"s order in the case of CITY OF HARTFORD and : HARTFORD BOARD OF EDUCATION,: : Plaintiffs, : : v. : CASE NO. 3:15cvl544(RNC) : MONSANTO COMPANY, et al,, : : Defendants.. (US OFFICIAL NEWS) 22 Jul 2017: United States Courts Opinions: United States District Court District of Connecticut: CiTY OF HARTFORD and HARTFORD BOARD OF EDUCATION, Plaintiffs, v. MONSANTO COMPANY,. (US OFFICIAL NEWS) Source: 18 Aug 2017JJS OFFICIAL NEWS; 22 Jul 2017JJS OFFICIAL NEWS Town of Westport Lawsuit: Alleged Contamination of School Building with PCB UPDATES: 10 Apr 2017: United States Courts Opinions: United States District Court District of Massachusetts: TOWN OF WESTPORT, Plaintiff, v. MONSANTO COMPANY et al. Defendants.. (US OFFICIAL NEWS) Source: 10 Apr 2017.JJS OFFICIAL NEWS Sauget Superfund Site: USD 14.8 Million Settlement Related of Contamination Cleanup for Six Former Waste Disposal Sites UPDATES: 17 Feb 2017: DEPARTMENT OF JUSTICE AND EPA ANNOUNCE $15 MILLION SETTLEMENT TO CLEAN UP CONTAMINATION AT SAUGET AREA 1 SITES. (STATES NEWS SERVICE) Source: 17 Feb 2017 STATES NEWS SERVICE Patent Enforcement Practices Monsanto is known for monitoring the use of its patented seeds and for taking a tough stand against farmers the company alleges have used the seeds illegally. The company has been criticized for its practice of hiring private investigators to monitor farmers. It has filed lawsuits against several farmers in the U.S. and Canada alleging patent infringement. As of September 2017, the company continued to be involved in such litigation. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 50 OF 64 EX P-3588 Page 50 of 64 SVEC OL.DMONS0570692 MONSANTO COMPANY (MON) ESG RATING g Date: September 2017 Assessment: Severe Status: Ongoing In February 2013, the United States Supreme Court heard arguments for a case against Monsanto filed by a 75-year old farmer who purchased Monsanto's soybeans and subsequently used the resulting seeds from his crop to plant more crops. Previously, lower courts had already ruled in favor of Monsanto. Separately, non-governmental organizations, Center for Food Safety and the Save Our Seeds campaign, released a study tracking Monsanto's 142 patent infringement suits filed against 410 farmers and 56 small businesses across approximately 27 states. The company clarified in a statement that it has filed lawsuits against farmers 145 times since 1997. Monsanto has stated that it aggressively enforces its seed patents in order to protect its intellectual property and to ensure that it is compensated for its research and development activities. Further, the company reports that it donates any profits from seed enforcement lawsuit penalties to charity. Monsanto's patent protection measures conflict with farmers' traditional practice of reusing seeds from a previous season's crops. Farmers who purchase seeds from Monsanto are required to sign a "Technology Use Agreement" and pay the company a fee based on acreage planted in addition to the cost of the seeds. The agreement gives the company a right to inspect the fields and take samples for three years after the seeds are purchased. The company has set up a controversial toll-free tip line for farmers to report on those who violate the agreement. In March 2011, a group of US organic agricultural organizations headed by the Organic Seed Growers and Trade Association filed a lawsuit in a federal district court in Manhattan, New York Court against Monsanto to challenge its patents on genetically modified seeds. The plaintiffs launched the legal action preemptively to protect themselves from being accused of patent infringement should they become contaminated by Monsanto's GM seeds. The district court dismissed the case in January 2012, ruling that the farmers lacked legal standing regarding the concerns over the potential contamination and consequential economic impact. The court also declared that the decision was made on grounds that the complainants were not yet contaminated despite recognizing that some contamination is "inevitable." The plaintiffs subsequently brought the lawsuit to the Court of Appeals for the Federal Circuit in Washington which also dismissed the case in June 2013 on the same grounds. The June 2013 appeals court decision highlighted the fact that "Monsanto has made binding assurances that it will not 'take legal action against growers whose crops might inadvertently contain traces of Monsanto biotech genes (because, for example, some transgenic seed or pollen blew onto the grower's land).'" In September 2013, the plaintiffs appealed to the US Supreme Court to get full protection from potential infringement. In January 2014, the Supreme Court refused to hear case. That ruling supports the appeals court's verdict and bars the reinstatement of the case. UPDATES: [accessed on 20 Sep 2017]: Saved Seed and farmer Lawsuits. (Monsanto, website) Source: 20 Sep 2017_Monsanto Website; 23 Mar 2016_Monsanto Website; 31 Aug 2015_2015 10-K; 2013/02/22_Huffington Post;2 O14/1/23_GMO Journal; 2014/1/14_OSGATA Press Release; 2011/3/29_OSGATA Press Release; 2014/l/13_RT.com; 2013/02/13_Huffi ngton Post Lawsuits Concerning Agent Orange Monsanto has faced lawsuits in the U.S., Europe, Canada, South Korea, and Vietnam following widespread public health issues raised by war veterans and civilians who came in contact with the herbicide known as Agent Orange. U.S., South Korean, and Vietnamese veterans and their families have attributed various illnesses to the defoliant, including miscarriages, birth defects, cancers, and nervous disorders. Vietnam claims that about a million of its people suffer from Agent Orange-related illnesses. As of September 2017, damage compensation and health aid claims by U.S. and Vietnam war veterans and their families who were exposed to Agent Orange were ongoing. UPDATES: 25 Apr 2016: REPORT SHOWS STRONGER LINK BETWEEN AGENT ORANGE EXPOSURE AND SOME DISEASES. (STATES NEWS SERVICE) A report by the Institute of Medicine noted that there could be "limited or suggestive evidence" linking Agent Orange exposure to hypothyroidism and bladder cancer. Nitro, West Virginia Lawsuit 07 Jul 2015: MONSANTO CO: Parties in "Allen" Case Perform on Settlement. (CLASS ACTION REPORTER) Jan 2013: The Putnam County Circuit Court approved Monsanto's proposed settlement. Subsequently, certain plaintiffs objected to the settlement and brought the case to the West Virginia Supreme Court. The Court dismissed the appeal in November 2013 in favor of Monsanto. Feb 2012: Monsanto proposed a settlement wherein it agreed to pay approximately USD 93 million in resolution of the allegations. The agreement stipulated a 30-year medical monitoring program consisting of approximately USD 21 million and an additional fund of approximately USD 63 million over the life of the program, and a three-year property remediation plan amounting to approximately USD 9 million. Dec 2004: 15 plaintiffs filed a purported class action lawsuit against Monsanto, (its former parent) Pharmacia, and seven other defendants alleging that the companies' production of Agent Orange in Nitro, West Virginia resulted in the release of dioxins at unsafe levels that contaminated the area. The complainants comprised of current and former residents, workers, and students who, between 1949 and the present, were allegedly exposed to dioxins/furans contamination in counties surrounding the site. The plaintiffs also claimed that members of their community contracted illnesses and conditions including cancer, birth defects, learning disabilities, endometriosis, infertility, and suppressed immune functions, due to exposure to dioxin pollution. The plaintiffs sought damages for property cleanup costs, loss of real estate value, funds for property contamination testing, funds for human exposure testing, and medical monitoring costs. Monsanto previously reached an agreement with the EPA to clean up the Nitro site in 1983 and again in 1985. However, in a 2000 report, the EPA stated that the nearby Kanawha River contained unsafe and illegal levels of dioxin. In 2002, state regulators discovered seepage of dioxin into the Kanawha River allegedly from a plant where Monsanto used to manufacture Agent Orange. The dioxin reportedly settled in the river and nearby surroundings. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 51 OF 64 EX P-3588 Page 51 of 64 SVEC OL.DMONS0570693 MONSANTO COMPANY (MON) ESG RATING g Claims by U.S. Veterans 15 Sep 2017: The Forgotten Victims of Agent Orange. (The New York Times) The New York Times published an article highlighting the lasting negative of impact of Agent Orange and the ongoing struggles of individuals in the U.S. and Vietnam that were exposed to the chemical during the war. Although environmental remediation efforts and damage compensation payments have been made in the past, the allocation of resources to address the existing health concerns suffered by the victims allegedly remain inadequate. 10 Mar 2016: Researchers call for more study of Agent Orange's effects on Vietnam veterans and their kids. (The Virginia-Pilot) The committee of researchers established in 1991 to investigate the negative health effects of Agent Orange has declared that more than two decades of study has not produced a concrete understanding as to how the toxic herbicide has harmed Vietnam veterans and possibly their families. The committee declared that there are still significant gaps in their findings and that additional research is necessary. 08 Feb 2016: Veterans Affairs again denies Agent Orange benefits to Navy vets. (The Virginia-Pilot) The U.S. Department of Veterans Affairs (VA) has again rejected the efforts of Vietnam Navy veterans to claim compensation for possible exposure to Agent Orange. For over a decade, advocates for approximately 90,000 Blue Water Navy veterans who served off the coast of Vietnam have been requesting the VA to expand its benefits policy to include them. The veterans group claimed that they were exposed to Agent Orange because their ships harnessed potentially contaminated water and distilled it for drinking, cooking, bathing and laundry. Experts have reported that the distillation process could have actually concentrated the harmful substance. 18 Jun 2015: VA Expands Disability Benefits for Air Force Personnel Exposed to Contaminated C-123 Aircraft. (Department of Veteran Affairs) In light of the Institute of Medicine's January 2015 findings, the Department of Veterans Affairs implemented a new regulation in June 2015 that expanded the benefits eligibility for certain Air Force Veterans and Air Force Reserve personnel who were exposed to the herbicide Agent Orange during their service inside the contaminated C-123 aircraft. 09 Jan 2015: Post-Vietnam Dioxin Exposure in Agent Orange-Contaminated C-123 Aircraft. (Institute of Medicine) In January 2015, the Institute of Medicine (IOM) released a report entitled "Post-Vietnam Dioxin Exposure in Agent Orange-Contaminated C-123 Aircraft." The report was based on an evaluation conducted by the IOM on the 1,500 to 2,100 Airforce Reserve personnel who trained and worked between 1972 and 1982 on the C-123 aircraft that had been used to spray herbicides, including Agent Orange (AO), during Operation Ranch Hand in the Vietnam War. The Department of Veteran Affairs requested the IOM to conduct the assessment to determine if the AF Reservists were exposed to herbicides at levels harmful to their health. The lOM's findings indicated the following: the presence of herbicide residues on the interior surfaces of the C-123 aircraft; herbicide residue levels based on internal surface samples fall in or above the cautionary range for adverse health outcomes as defined by international guidelines; AF reservists would have been exposed to the herbicides during their service inside the C-123; plausibility that reservists' chemicals exposure exceeded health guidelines which increases the likelihood of increased risks of adverse health outcomes. Vietnamese Veterans Lawsuit 04 Apr 2017: Vietnamese families Still Battling the Aftermath of Agent Orange. (The Independent) The Independent released an article highlighting the ongoing health concerns of Vietnamese soldiers and their families, which allegedly resulted from exposure to Agent Orange. Various illnesses and birth defects purportedly continued to manifest in the children and grandchildren of war veterans exposed to the chemical during the war. 08 Jan 2016: First argument session in Agent Orange lawsuit in France slated for March. (Vietnam Plus) The Crown Court of Evry scheduled in March 2016, the first argument session for the 2014 Agent Orange lawsuit launched by Tran To Nga. 15 Jun 2015: EXCLUSIVE: Agent Orange Victims to Sue U.S. Firms Again for Damages. (JIJI PRESS TICKER SERVICE) Advocacy group, Vietnam Association of Victims of Agent Orange (VAVAO), declared that it will launch another lawsuit against 26 companies, including Monsanto to seek damages for negative health effects caused by defoilants used during the Vietnam War. The group stated that it had learned many lessons from their failed legal action which was launched in 2004. VAVAO declared that timing of the new lawsuit's filing has not been decided but a shortlist has been established for which courts they will initiate the litigation in. 15 Jun 2015: EXCLUSIVE: Agent Orange Victims to Sue U.S. Firms Again for Damages. (JIJI PRESS TICKER SERVICE) Advocacy group, Vietnam Association of Victims of Agent Orange (VAVAO), declared that it will launch another lawsuit against 26 companies, including Monsanto to seek damages for negative health effects caused by defoilants used during the Vietnam War. The group stated that it had learned many lessons from their failed legal action which was launched in 2004. VAVAO declared that timing of the new lawsuit's filing has not been decided but a shortlist has been established for which courts they will initiate the litigation in. 21 April 2015: Agent Orange trial launched by French-Vietnamese woman opens. (VAVA.org) In May 2014, French-Vietnamese, Tran To Nga filed a class action lawsuit in the Crown Court of Evry in France against 26 U.S. companies for producing the toxic substances sprayed by the U.S. armed forces during the war in Vietnam. Nga and her legal representatives claimed that the chemicals, and therefore their manufacturers, were responsible for the serious health issues inflicted on her, her family and Vietnamese communities. Mrs. Nga was purportedly exposed to Agent Orange during her service for the Liberation News Agency in the late 1960s. Working as a correspondent, she travelled to the most heavily dioxin-contaminated areas in southern Vietnam including Cu Chi, Ben Cat and along the Ho Chi Minh Trail. According to Mrs. Nga her first born died of heart defects and her second child suffered from a blood disease, which were purportedly caused by her earlier exposure to the harmful chemicals used during the war. In April 2015, the trial for her 2014 lawsuit was launched. Oct 2008: The plaintiffs brought the lawsuit to the US Supreme Court to request that it be reviewed again. The request was denied in February 2009. Nov 2004: The defendants filed a motion to dismiss the case on grounds of jurisdiction and the plaintiffs' failure to prove that the defendants violated international laws. In March 2005, the District Court dismissed VAVAO's lawsuit. The judged presiding over the case ruled that the use of the dioxins during the war, although they were toxic, did not fit the definition of "chemical warfare" and therefore did not violate international law. The court also declared that the chemical manufacturers as US government contractors had the same immunity as the US government from litigation. Subsequently, the plaintiffs filed appeals to reinstate the case in the Second Circuit Court of Appeals and the Federal Court of Appeals in Manhattan. Both were denied MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 52 OF 64 EX P-3588 Page 52 of 64 SVEC OL.DMONS0570694 MONSANTO COMPANY (MON) ESG RATING g Date: May 2017 Assessment: Severe Status: Ongoing Moderate Controversies Date: December 2017 Assessment: Moderate Status: Ongoing Jan 2004: VAVAO filed a lawsuit in the District Court of the Eastern District of New York against Monsanto, Dow Chemical, Pharmacia and other chemical produces involved in the manufacturing of Agent Orange. By virtue of the Alien Tort Claims Act, the plaintiffs alleged that the companies that produced the toxic herbicides used in the Vietnam war were in "violation of international law and war crimes, and under the common law for products liability negligent and intentional torts, civil conspiracy, public nuisance and unjust enrichment, seeking many damages for personal injuries, wrongful death and birth defects and seeking injunctive relief for environmental contamination and disgorgement of profits." South Korea Court Rulings Jul 2013: The South Korea Supreme Court ordered Monsanto and Dow Chemical to compensate 39 Vietnam War veterans a total of approximately USD 415,000. The Court recognized the complainants contracted certain skin diseases such as chemical acne due to exposure to the toxic defoliants manufactured by the two companies. Dow Chemical contested the ruling and argued that the verdict was not supported by clear evidence. Jan 2006: A South Korean court ordered Monsanto and Dow Chemical to pay compensation to approximately 6,800 people, including South Korean Vietnam War veterans and their families, who allegedly suffered health problems due to Agent Orange exposure. Total compensation was estimated at USD 61 million. Three separate damages suits were filed against the two companies on behalf of approximately 20,000 South Koreans. Two were upheld by the court while one case was dismissed. Federal courts have ruled that Vietnam veterans who missed a 1994 deadline for seeking compensation for Agent Orange-related illnesses could sue Agent Orange manufacturers, including Monsanto, for damages. As part of a 1984 settlement the manufacturers agreed to pay into a USD 180 million compensation fund for Vietnam veteran victims in exchange for release from any future liability. However, plaintiffs have alleged that those who discover illnesses after 1994 should be eligible for payments. Pending Lawsuit in Canada Sep 2007: A lawsuit filed by the Canadian government against Monsanto and Dow Chemical in April 2007 was pending. The lawsuit sought compensation for any injuries plaintiffs may have suffered as the result of the spraying of Agent Orange chemicals in 1967 and 1968 at Canadian Forces Bases. At an earlier time, individuals who lived near a base in New Brunswick filed a class action lawsuit against the Canadian government alleging that they suffered injuries from being exposed to various chemicals used for 30 years to control weeds at the base. Source: 15 Sep 2017_The New York Times; 04 Apr 2017_The Independent; 25 Apr 2016_STATES NEWS SERVICE; 2013/ll/30_Mons anto 10-Q Report; 2013/8/31_Monsanto 2013 10-K; 2013/l/25_Bloomberg Businessweek; 2013/2/l/_lndiana Public Media; 2012/2/ 2_lndiana Public Media; 2012/2/l_NPR; 2013/l/29_lnsurance Journal; 2013/7/12_Fox News; US Department of Justice Department C ourt Documents 2004-2009; Agent Orange Record; 2012/l/2_Chemical Week; 2011/0S/10_Thai News Service Brazilian Soy Farmers Royalty Lawsuit In 2008, approximately five million large and small Brazilian soybean producers launched legal action against Monsanto for the alleged illegal collection of royalties on seed harvests of its genetically engineered Roundup Ready soybeans. The complainants claimed that the company demanded royalties not only for the initial harvested crop using the patented seed but also for subsequent crop harvests. The soy farmers argued that using seeds from previous harvests has always been a traditional practice and should not warrant crop royalties. Since 2003, Monsanto has allegedly demanded from Brazilian soy producers an annual crop royalty equivalent to twopercent of revenue derived from annual harvests. UPDATES: 31 May 2017: 10-Q 2017. (Monsanto) Litigation on the alleged illegal royalty collection on Roundup Ready seed harvests was ongoing. According to the company, the issue was under judicial review in Brazil. 31 May 2016: 10-Q 2016. (Monsanto) Litigation on the alleged illegal royalty collection on Roundup Ready seed harvests was ongoing. 31 Aug 2014: 10-K 2014. (Monsanto) Monsanto declared that it continued to face royalty-related legal actions in Brazil. The company stated that duration of patents for its Roundup Ready soybeans were under review in the country. Nov 2013: Monsanto continued to face the seed royalty lawsuit. The company might be liable for BRL 15 billion (USD 7.5 billion) if it were to lose the lawsuit. The Superior Tribunal of Justice, Brazil's second highest court, ruled that once a final decision was reached in the case filed in the state of Rio Grande do Sul, the decision could be applied across the country. Feb 2013: Monsanto offered a new contract to settle the lawsuit, but the offer was rejected by Brazilian soy farmers. The company told investors that it would defer royalty collection for first-generation Roundup Ready soybeans in Brazil until the matter was settled by the Brazilian court. Apr 2012: A court in Rio Grande do Sul ordered Monsanto to pay back at least USD 2 billion of the royalty payments it had collected. Monsanto subsequently appealed the ruling. Source: 31 May 2017_Monsanto 2017 10-Q;; 31 May 2016_Monsanto 2016 10-Q; 2013/ll/30_Monsanto 10-Q report; 2012/6/1 3_Reuters; 2012/6/3_AFP Argentina: Complaint by Farmers over Royalties Allegedly Sought for Cultivation of Second Generation Seeds from Inacta In February 2016, the Argentine Rural Society (SRA), a local organization representing medium to large scale farmers, filed a complaint against Monsanto before the Argentina's National Commission for the Defense of Competition. The SRA alleged that Monsanto abused its dominant position in the market by seeking compensation from farmers to plant second-generation seeds produced from its genetically modified (GM) soybean, Inacta. The SRA claimed that under local law farmers were only required to pay for the Monsanto technology at the initial purchase of the GM seeds. In response to the dispute, Monsanto announced that it would no longer launch future soybean technologies in Argentina. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 53 OF 64 EX P-3588 Page 53 of 64 SVEC OL.DMONS0570695 MONSANTO COMPANY (MON) ESG RATING g Date: December 2017 Assessment: Moderate Status: Ongoing UPDATES: 18 Dec 2017: No new information available. 23 Jun 2016: UPDATE 1-Argentina reaches agreement over inspection of Monsanto soy. (Reuters) 18 May 2016: SAM:Monsanto suspends Argentina soybean tech. (AAP NEWSFEED) 12 Feb 2016: Argentine farmers take Monsanto seed complaint to regulators. (Reuters) Source: 23 Jun 2016_Reuters Roundup Ready 2 Xtend: Alleged Damage to Soybean Farms Due to Dicamba Use Approximately 125 farmers in Missouri and Arkansas filed complaints with the respective state agriculture departments over damage to soybean crops allegedly due to the use of dicamba herbicides, including Monsanto's Roundup Ready 2 Xtend. Farmers claimed that dicamba sprayed in neighboring farms to control pigweed resulted in damage to their soybean fields. They further claimed that Monsanto marketed dicamba-resistant Roundup Xtend beans, even as the U.5. Environmental Protection Agency had not yet approved the use of the associated herbicide. UPDATES: 13 Dec 2017: Minnesota joins U.S. states limiting controversial farm chemical. (Reuters) 12 Dec 2017: Monsanto offers cash to U.S. farmers who use controversial chemical. (Reuters) 17 Nov 2017: Monsanto asks Arkansas judge to halt state's herbicide ban ; Monsanto asks Arkansas judge to halt state's herbicide ban. (CANADIAN PRESS) 17 Nov 2017: Missouri limits use of weed killer linked to crop damage. (Reuters) 30 Oct 2017: EPA Chief Backs Another Pesticide Flarmful to Kids. (Environmental Working Group) 01 Nov 2017: Crops in 25 States Damaged by Unintended Drift of Weed Killer. (The New York Times) 20 Oct 2017: Monsanto sues Arkansas over proposed herbicide limits. (Reuters) 13 Oct 2017: EPA, herbicide makers agree to new limits for use of dicamba. (ASSOCIATED PRESS FINANCIAL WIRE) 13 Oct 2017: U.S. experts doubt EPA curbs on Monsanto, BASF herbicides will halt crop damage. (Reuters) 03 Oct 2017: MONSANTO COMPANY: Court Narrows Claims in "Lamders". (CLASS ACTION REPORTER) 22 Sep 2017: Arkansas Defies Monsanto, Moves To Ban Rogue Weedkiller. (EARTHFIX (OREGON)) 21 Sep 2017: Monsanto's Weed Killer, Dicamba, Divides Farmers. (The New York Times) 08 Sep 2017: MONSANTO: New Suit Accuses Reps of Condoning Illegal Spraying. (CLASS ACTION REPORTER) 07 Sep 2017: Public Records Sought on EPA's Fast-track Approval of Controversial Pesticide Monsanto's Toxic New Roundup Mixture Approved With No Public Input. (US OFFICIAL NEWS) 06 Sep 2017: Seed-firm sues told to file in Missouri. (ARKANSAS DEMOCRAT-GAZETTE (LITTLE ROCK)) 05 Sep 2017: Exclusive: EPA eyes limits for agricultural chemical linked to crop damage. (Reuters) 09 Aug 2017: Scant oversight, corporate secrecy preceded U.S. weed killer crisis. (Reuters) 03 Aug 2017: MONSANTO COMPANY: Arkansas Farmers File Class Action Over Dicamba. (CLASS ACTION REPORTER) 13 Jul 2017: Tennessee restricts use of Monsanto pesticide as problems spread. (Reuters) 08 Jul 2017: Two states ban dicamba weed killer after drift complaints. (Reuters) 23 Jun 2017: Arkansas Board OKs Emergency Ban of Drift-prone Pesticide. (TARGETED NEWS SERVICE) 15 Jun 2017: Arkansas farmers sue over crop damage blamed on herbicide. (ASSOCIATED PRESS FINANCIAL WIRE) 23 Mar 2017: MONSANTO CO: Faces Class Action Over Dicamba Herbicide. (CLASS ACTION REPORTER) 31 Aug 2016: Suspected illegal herbicide use takes toll on southeast Missouri farmers. (FARM FORUM (ABERDEEN, SOUTH DAKOTA)) 18 Aug 2016: Illegal Herbicide Use on Monsanto GMOs Spurs Bitter Complaints. (Environmental Working Group) 01 Aug 2016: Crime In The Fields: How Monsanto And Scofflaw Farmers Hurt Soybeans In Arkansas. (EARTHFIX (OREGON)) 26 Jul 2016: Monsanto draws state heat over drift. (ARKANSAS DEMOCRAT-GAZETTE (LITTLE ROCK)) 22 Jul 2016: Panel: Farmers can use soybean Still, weedkiller risks other crops. (ARKANSAS DEMOCRAT-GAZETTE (LITTLE ROCK)) Source: 13 Dec 2017_Reuters; 12 Dec 2017_Reuters; 17 Nov 2017_CANADIAN PRESS; 17 Nov 2017_Reuters; 30 Oct 2017_Environm ental Working Group; 01 Nov 2017_The New York Times; 20 Oct 2017_Reuters; 13 Oct 2017_ASSOGATED PRESS FINANCIAL WIRE; 13 Oct 2017_Reuters; 03 Oct 2017_CLASS ACTION REPORTER; 22 Sep 2017_EARTHFIX (OREGON); 21 Sep 2017_The New York Times; 08 S ep 2017_CLASS ACTION REPORTER; 07 Sep 2017_US OFFICIAL NEWS; 06 Sep 2017_ARKANSAS DEMOCRAT-GAZETTE (LITTLE ROCK); 05 Sep 2017_Reuters; 03 Aug 2017_CLASS ACTION REPORTER; 09 Aug 2017_Reuters; 13 Jul 2017_Reuters; 08 Jul 2017_Reuters; 23 Jun 20 17_TARGETED NEWS SERVICE; 15 Jun 2017_ASSOCIATED PRESS FINANCIAL WIRE; 23 Mar 2017_CLASS ACTION REPORTER; 31 Aug 201 6_FARM FORUM (ABERDEEN, SOUTH DAKOTA) MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 54 OF 64 EX P-3588 Page 54 of 64 SVEC OL.DMONS0570696 MONSANTO COMPANY (MON) ESG RATING g Date: December 2017 Assessment: Moderate Status: Ongoing Date: December 2017 Assessment: Moderate Status: Ongoing Monsanto Guilty of Chemical Poisoning In February 2012, a court in Lyon, France issued a guilty verdict against Monsanto for allegedly poisoning a French farmer. The plaintiff claimed that he had developed neurological problems after his exposure to the company's herbicide product, Lasso. The complainant also alleged that consumers were not fully informed of the dangers due to inadequate warnings on product labeling. Lasso had been banned in France since 2007. The company has declared that it will appeal the ruling UPDATES: 12 Dec 2017: No new information available. 07 Mar 2016: no new information available. 10 Sep 2015: French court confirms Monsanto guilty of chemical poisoning. (Reuters) A French court upheld the 2012 ruling on the chemical poisoning lawsuit against Monsanto. 11 Feb 2014: Charente "out of the question to stop" its fight against Monsanto. (Sudouest) As of January 2014, the appeal proceedings were ongoing. Source: 10 Sep 2015_Reuters; 2012/2/13_Reuters; 2012/2/14_BBC News WHO Agency Declares Glyphosate as "Probably Carcinogenic" to Humans In March 2015, the World Health Organization's specialized cancer agency, the International Agency for Research on Cancer (IARC), released an assessment of five organophosphate pesticides. Among the agricultural chemicals evaluated was glyphosate, which Monsanto markets under the Roundup brand. The IARC classified glyphosate as "probably carcinogenic" to humans. According to the agency's study, for the herbicide, there was limited evidence of carcinogenicity in humans for non-Hodgkin lymphoma, and sufficient evidence of carcinogenicity in experimental animals. Glyphosate also purportedly caused DNA and chromosomal damage in human cells. The IARC cited studies of exposure to glyphosate in the U.S., Canada and Sweden since 2001. The lARC's findings have triggered the temporary ban of the chemical in certain parts of France and Colombia. Meanwhile, other food and substance safety agencies in certain nations like the German Federal Institute for Risk Assessment (BfR) have begun to conduct their own examination of glyphosate. The BfR found results opposite to the lARC's assessment but clarified that it has not conducted a complete review the WHO agency's report. In May 2016, the cancer assessment review committee of the U.S. Environmental Protection Agency (EPA) published online a preliminary report stating that glyphosate was not likely to be carcinogenic to humans. However, the EPA subsequently withdrew the report from the government website. The agency affirmed its assessment that glyphosate was not likely to be carcinogenic in September 2016. Separately, the United Nations Food and Agriculture Organization published a study that found that glyphosate was "unlikely" to be carcinogenic when ingested orally through food. UPDATES: 12 Dec 2017: EU renews approval for herbicide glyphosate for five years. (Reuters) 27 Nov 2017: Germany swings EU vote in favor of weed-killer glyphosate. (Reuters) 26 Nov 2017: France to vote against EU license extension for weed-killer glyphosate. (Reuters) 15 Nov 2017: Monsanto, U.S. farm groups sue California over glyphosate warnings. (Reuters) 14 Nov 2017: EU: Parliament fails to reach conclusion on carcinogenic properties of glyphosate despite warnings of negative health effects. (Business & Human Rights Resource Centre (Main)) 07 Nov 2017: Official complaint on Monsanto non-compliance with EU transparency rules. (The Corporate Europe Observatory) 01 Nov 2017: Exclusive: Congressional committee questions operation of WHO cancer agency. (Reuters) 27 Oct 2017: EU Commission proposes five-year extension for herbicide glyphosate. (Reuters) 27 Oct 2017: France rejects Commission proposal for five-year glyphosate extension. (Reuters) 25 Oct 2017: Study Finds Surge in Exposure to Monsanto's Roundup Over Past Two Decades. (TARGETED NEWS SERVICE) 23 Oct 2017: More than 1.3 million demand EU weedkiller ban. (AGENCE FRANCE PRESSE - ENGLISH) 19 Oct 2017: In glyphosate review, WHO cancer agency edited out 'non-carcinogenic' findings. (Reuters) 12 Oct 2017: Scientists to Journal: Retract Pesticide Review After Revelations of Monsanto Funding, Influence. (TARGETED NEWS SERVICE) 10 Oct 2017: Monsanto Papers hearing at EU Parliament to lift lid on flawed EU pesticide approval process. (The Corporate Europe Observatory) 30 Aug 2017: France to vote against EU renewal of controversial weedkiller. (The Local (France)) 09 Aug 2017: U.S. lawmakers seek missing information in review of Monsanto weedkiller. (Reuters) 02 Aug 2017: Monsanto Emails Raise Issue of Influencing Research on Roundup Weed Killer. (The New York Times) 07 Jul 2017: In a Milestone, California Lists Monsanto's Glyphosate as a Carcinogen. (Environmental Working Group) 14 Jun 2017: Cancer agency left in the dark over glyphosate evidence. (REUTERS HEALTH MEDICAL NEWS) 14 Jun 2017: MONSANTO: Former EPA Director Taken to Court in Glyphosate Case. (CLASS ACTION REPORTER) 07 Jun 2017: Inspector General Investigating Potential Collusion Between Monsanto, Top EPA Official. (TARGETED NEWS SERVICE) 29 May 2017: Scientist writes to Juncker: new tumour evidence found in confidential glyphosate data. (The Corporate Europe Observatory) MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 55 OF 64 EX P-3588 Page 55 of 64 SVEC OL.DMONS0570697 MONSANTO COMPANY (MON) ESG RATING g 24 May 2017; EU declared Monsanto weedkiller safe after intervention from controversial US official. (The Guardian) 12 Apr 2017: Monsanto Aims To Stay California's Glyphosate Prop. 65 Listing In Appeal. (TOXICS REGULATION NEWS) 24 Mar 2017: EU MPs Urge Juncker to Probe Claims Monsanto Forged Reports on Herbicide Safety. (Sputnik News) 15 Mar 2017: Glyphosate no carcinogen, says EU agency. (Deutsche Welle) In March 2017, the European Chemical Agency released an announcement declaring that glyphosate should not be classified as carcinogenic. According to the agency, extensive evaluation of all information available for the substance revealed that it does not cause genetic or reproductive defects. 13 Jan 2017: U.S. congressional committee demands answers on WHO cancer agency. (REUTERS HEALTH MEDICAL NEWS) 30 Sep 2016: No Swiss ban for weed-killer glyphosate. (Swissinfo) 16 Sep 2016: UPDATE 1-EPA says glyphosate, used in Monsanto herbicide, likely not carcinogenic. (Reuters) 28 Jun 2016: European Commission to extend glyphosate license for 18 months. (Reuters) 14 Jun 2016: Court Allows Center for Food Safety to Defend California from Monsanto Attack. (TARGETED NEWS SERVICE) 07 Jun 2016: US lawmakers question whether EPA staff influenced WHO glyphosate review. (Channel NewsAsia) 06 Jun 2016: Recall of Monsanto's Roundup likely as EU refuses limited use of glyphosate. (The Guardian) 01 Jun 2016: EU set to consider temporary extension of glyphosate licence over cancer row. (Reuters) 16 May 2016: Dietary exposure to glyphosate unlikely to cause cancer, U.N. report says. (UPI) 13 May 2016: EPA faces second U.S. lawmakers investigation into glyphosate review. (Reuters) 12 May 2016: U.S. lawmakers put pressure on EPA over handling of glyphosate review. (Reuters) 03 May 2016: EPA takes offline report that says glyphosate not likely carcinogenic. (REUTERS HEALTH MEDICAL NEWS) 08 Apr 2016: French Government Moves to Ban Some Monsanto Glyphosate Weed Killers. (Environmental Working Group) 07 Mar 2016: EU to defer decision on safety of weed-killer ingredient - sources. (Reuters) 02 Mar 2016: Center for Food Safety Moves to Defend California from Monsanto Attack. (TARGETED NEWS SERVICE) 02 Mar 2016: NGOs sue Monsanto over pesticide safety. (The Local (Austria)) 17 Feb 2016: Key evidence withheld as'trade secret' in EU's controversial risk assessment of glyphosate. (The Corporate Europe Observatory) 21 Jan 2016: UPDATE 1-Monsanto sues to keep herbicide off California list of carcinogens. (Reuters) 13 Jan 2016: EU food safety watchdog hits back at scientists in glyphosate row. (Reuters) 07 Dec 2015: Scientists assembled for Monsanto say herbicide not carcinogenic, disputing WHO report. (Reuters) 12 Nov 2015: EU watchdog approves new licence for controversial weedkiller; Herbicide approved for relicensing in EU, despite World Health Organisation assessment linking it to cancer in humans. (THE GUARDIAN) 12 Nov 2015: European scientists say weedkiller glyphosate unlikely to cause cancer. (Reuters) According to an independent study conducted by the European Food Safety Authority (EFSA) on glyphosate, it is unlikely that the substance is carcinogenic. The EFSA declared that it had conducted a thorough analysis of the substance and took into account the IRAC's findings. 21 Oct 2015: Monsanto pushes against California listing of herbicide as cancer cause. (YEREPOUNI DAILY NEWS) 22 Sep 2015: Herbicide scrutiny mounts as resistant weeds spread in U.S. (SAUDI PRESS AGENCY (SPA)) 10 Sep 2015: California Moves To Protect Citizens From Monsanto's GMO Weed Killer. (Environmental Working Group) California has expressed intentions to add glyphosate to the state's official list of known carcinogens. The state declared its plans to implement the policy through Proposition 65, a legislation that requires the registration and labeling of hazardous chemicals known to cause cancer or birth defects as determined by California's Office of Environmental Health Hazard Assessment. 20 Aug 2015: Scientists call for new review of herbicide, cite 'flawed' U.S. regulations. (NEWS POINT) 19 Aug 2015: Bill banning Roundup yanked. (HAWAII TRIBUNE-HERALD) 07 Aug 2015: PESTICIDES: European retailers yank Roundup from shelves. (GREENWIRE) 15 Jul 2015: Weedkiller suspected of causing cancer deemed 'safe'; A multi-billion dollar weedkiller used in British farms, parks and gardens has been linked to cancer by the WHO, but its European license could still be reapproved. (THE GUARDIAN) In an independent study, the BfR found "very limited evidence of carcinogenicity" in mice exposed to glyphosate. The agency stated that the acceptable daily intake of the substance was between 0.3 to 0.5 mg per kilogram of body weight per day. BfR has also recommended the re approval of glyphosate. 14 Jul 2015: Monsanto says panel to review WHO finding on cancer link to herbicide. (REUTERS HEALTH MEDICAL NEWS) 15 Jun 2015: France Bans 'Probably Carcinogenic' Monsanto Herbicide for Home Gardeners. (RIA Novosti ) 15 May 2015: Colombia gov't confirms suspension of aerial coca spraying. (Reuters) 29 Apr 2015: HERBICIDE: CAMPAIGNERS SEEK BAN ON GLYPHOSATE IN LATIN AMERICA. (IPS - INTER PRESS SERVICE) 24 Mar 2015: Monsanto seeks retraction for report linking herbicide to cancer. (REUTERS HEALTH MEDICAL NEWS) 20 Mar 2015: Monsanto Disagrees with IARC Classification for Glyphosate. (Monsanto website) MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 56 OF 64 EX P-3588 Page 56 of 64 SVEC OL.DMONS0570698 MONSANTO COMPANY (MON) ESG RATING g Date: December 2017 Assessment: Moderate Status: Ongoing Date: November 2017 Assessment: Moderate Status: Ongoing Date: November 2017 Assessment: Moderate Status: Ongoing [Ql 20 Mar 2015: Health Agency Says Widely Used Herbicide Likely Carcinogenic. (Wall Street Journal) 20 Mar 2015: IARC Monographs Volume 112: Evaluation of Five Organophosphate insecticides and Herbicides. (World Health Organization - International Agency for Research on Cancer) Source: 12 Dec 2017_Reuters; 27 Nov 2017_Reuters; 26 Nov 2017_Reuters; 15 Nov 2017_Reuters; 14 Nov 2017_Business & Human Rights Resource Centre (Main); 07 Nov 2017_The Corporate Europe Observatory; 01 Nov 2017_Reuters; 27 Oct 2017_Reuters; 27 Oct 2017_Reuters; 25 Oct 2017_TARGETED NEWS SERVICE; 23 Oct 2017_AGENCE FRANCE PRESSE - ENGLISH; 19 Oct 2017_Reuters; 12 Oc t 2017_TARGETED NEWS SERVICE; 10 Oct 2017_The Corporate Europe Observatory; 30 Aug 2017_The Local (France); 09 Aug 2017_Re uters; 02 Aug 2017_The New York Times; 02 Aug 2017_The New York Times; 07 Jul 2017_Environmental Working Group; 14 Jun 201 7_REUTERS HEALTH MEDICAL NEWS; 14 Jun 2017_CLASS ACTION REPORTER; 07 Jun 2017_TARGETED NEWSSERVICE; 29 May 2017_Th e Corporate Europe Observatory; 24 May 2017_The Guardian; 12 Apr 2017_TOXICS REGULATION NEWS India: Investigation Into Alleged Unfair Sublicensing Agreement Conditions for Bt Cotton Technology Monsanto faced an investigation by the Competition Commission of India (CCI) over allegations that it compelled Indian seed companies to accept unfair conditions of its sublicensing agreement for Bt cotton technology. Three seed companies filed complaints with the CCI, claiming that the company abused its dominant position in the Bt cotton market. In December 2017, the CCI imposed a INR 15 million (approximately USD 233,000) for alleged inability to respond to questions related to the competition investigation. The agency has yet to complete the probe. UPDATES: 04 Dec 2017: India fines Monsanto for delays in answering anti-trust questions. (Reuters) 09 Sep 2016: Monsanto petition hearing on September 20. (Economic Times of India) 17 Jun 2016: CCI to probe three more new complaints against Monsanto. (THE ECONOMIC TIMES) 24 May 2016: After industry outcry, India puts GM seed order on hold. (HINDUSTAN TIMES) Source: 04 Dec 2017_Reuters; 30 Nov 2017_LiveMint; 09 Sep 2016_Economic Times of India Mexico: Alleged Irregularities in Indigenous Community Consultation on Planting GM Soybeans in Campeche State Local NGOs representing 31 indigenous Maya communities in Mexico's Campeche state filed a complaint about the consultation process conducted by local authorities related to the planting of Monsanto's genetically modified (GM) soybeans in the towns of Hopelchen and Tenabo. The NGOs noted that the process was hampered by the lack of access by community members to the consultation venue, as well as intimidation by supporters of the product. They also called for the enforcement of a ban on planting GM soybeans, which the communities claimed was being cultivated in the Vicente Guerrero Iturbide community. In November 2017, Mexico's agency for agriculture sanitation, Servicio Nacional de Sanidad, Inocuidad y Calidad Agroalimentaria (SENASICA) revoked Monsanto's permit to commercialize GM soybeans in seven Mexican states, including Campeche, San Luis Potosi, Tamaulipas, Veracruz, Quintana Roo, Chiapas, and Yucatan. UPDATES: 25 Nov 2017: Agency invalidates Monsanto GM permit; GM soybeans detected outside areas authorized for sowing. (Mexico News Daily) 19 Jul 2016: Mexico: Mision de Observacion denuncia abusos en consulta previa sobre siembra de soya transgenica de Monsanto; senala injerencia de empresa. (Business & Human Rights Resource Centre (Main)) 19 Jun 2016: Mexico: Authorities suspend Monsanto's permit to sow modified soybean in Yucatan. (EL FINANCIERED) Source: 25 Nov 2017_Mexico News Daily Roundup-related Injury Lawsuits Monsanto faced personal injury lawsuits related to its Roundup product. Complainants alleged that the company was liable for their contraction of various illnesses due to exposure to Roundup. The influx of claims was triggered by the classification of glyphosate, Roundup's active ingredient, as a probable carcinogen by the International Agency for Research on Cancer. In October 2016, the Judicial Panel on Multidistrict Litigation approved the consolidation of lawsuits alleging that exposure to glyphosate caused nonHodgkin's lymphoma. UPDATES: 20 Nov 2017: MDL2741: "Bare" Suit v. Monsanto Consolidated in N.D. Cal.. (CLASS ACTION REPORTER) 06 Oct 2017: France : Les parents d'un enfant ne avec de graves malformations suite a ^utilisation d'un herbicide au glyphosate poursuivent Monsanto en justice. (Business & Human Rights Resource Centre (Main)) 08 Sep 2017: MONSANTO: Cancer Survivor County Commissioner Joins Class Action. (CLASS ACTION REPORTER) 03 Aug 2017: Judicial Panel on Multidistrict Litigation Issues Order on Roundup Products. (TARGETED NEWS SERVICE) 28 Jun 2017: MONSANTO COMPANY: Turner Sues Over Injury Caused by Herbicide. (CLASS ACTION REPORTER) 18 Jul 2017: MONSANTO: Wants Cancer Class Action to Remain in Federal Court. (CLASS ACTION REPORTER) 07 Jun 2017: MONSANTO COMPANY: Faces "Maraman" Suit Over Sale of Roundup. (CLASS ACTION REPORTER) 01 Jun 2017: MONSANTO COMPANY: 2 Suits Filed in E.D. Mo. Over Roundup. (CLASS ACTION REPORTER) 18 May 2017: MONSANTO COMPANY: 6 Suits Filed in Del. Over Herbicide Roundup. (CLASS ACTION REPORTER) 03 May 2017: Monsanto Wrote False Studies That Influenced EU Guidance on Pesticide Safety. (RIA Novosti ) MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 57 OF 64 EX P-3588 Page 57 of 64 SVEC OL.DMONS0570699 MONSANTO COMPANY (MON) ESG RATING g Date: November 2017 Assessment: Moderate Status: Ongoing Date: September 2017 Assessment: Moderate Status: Ongoing 14 Apr 2017: Public Records Sought on Monsanto's Ties to EPA's Pesticide Office. (TARGETED NEWS SERVICE) 31 Mar 2017: Monsanto faces slew of Roundup lawsuits from St. Louis firm. (MISSOURI LAWYERS MEDIA) 23 Mar 2017: 40 Californians with Cancer Sue Monsanto in Alameda County. (NEWS RELEASE WIRE) 23 Mar 2017: USA: Over 100 people sue Monsanto over cancer allegedly caused by exposure to company's RoundUp weedkiller. (Business & Human Rights Resource Centre (Main)) 15 Mar 2017: Herbicide Is Facing New Doubt on Safety. (THE NEW YORK TIMES) In March 2017, in a trial related to alleged carcinogenic properties of Roundup, a San Francisco federal court unsealed documents which raised questions regarding the safety of the product as well as the research practices of Monsanto. The preliminary review of the documents suggested that the company disseminated ghostwritten research and coordinated with an EPA official in order to manipulate the regulatory review of the product. Monsanto denied the allegations, while the EPA has yet to release its comments. 01 Mar 2017: MONSANTO: Experts Weigh in on Roundup Class-Action Suit. (CLASS ACTION REPORTER) 16 Nov 2016: Monsanto Cancer Lawsuits Consolidated in Northern California. (NEWS RELEASE WIRE) 06 Oct 2016: Monsanto Trims But Can't Escape NY Roundup Cancer Suit. (Law360) 28 Sep 2016: MONSANTO CO: Faces Suits Over Cancer-Causing Herbicide Products. (CLASS ACTION REPORTER) 18 Aug 2016: MONSANTO COMPANY: Must Face Cancer Claims in Hawaii Case. (CLASS ACTION REPORTER) 04 Aug 2016: Plaintiffs File Motion to Consolidate Roundup Cancer Lawsuits Against Monsanto. (NEWS RELEASE WIRE) As of August 2016, 26 lawsuits were filed against the company, while Monsanto stated that it was aware of approximately 200 similar claims. 13 Jul 2016: United States Courts Opinions: United States District Court Eastern District of California: YOLANDA MENDOZA, Plaintiff, v. MONSANTO COMPANY, Defendant.. (US OFFICIAL NEWS) 29 Jun 2016: MONSANTO: Faces Class Action Over Round Up Herbicide. (CLASS ACTION REPORTER) 17 May 2016: Monsanto slumps as its popular herbicide Round Up faces class action suit in the US. (THE ECONOMIC TIMES) 10 Mar 2016: Monsanto Lawsuit Claims Roundup Caused Cancer in Cambria Farmer. (NEWS RELEASE WIRE) 04 Feb 2016: Former coffee farm owners sue Monsanto. (HAWAII TRIBUNE-HERALD) 28 Jan 2016: Americans With Herbicide-Linked Cancer File Lawsuit Against Monsanto in California. (RIA NOVOSTI) 24 Dec 2015: MONSANTO CO: Faces "Giglio" Suit Over Roundup(R)-Related Damages. (CLASS ACTION REPORTER) 15 Oct 2015: U.S. lawsuits build against Monsanto over alleged Roundup cancer link. (REUTERS HEALTH MEDICAL NEWS) 29 Sep 2015: U.S. workers sue Monsanto claiming herbicide caused cancer. (REUTERS HEALTH MEDICAL NEWS) Source: 20 Nov 2017_CLASS ACTION REPORTER; 06 Oct 2017_Business & Human Rights Resource Centre (Main); 08 Sep 2017_CLAS 5 ACTION REPORTER; 03 Aug 2017_TARGETED NEWSSERVICE; 28 Jul 2017_CLASS ACTION REPORTER; 18 Jun 2017_CLASS ACTION REP ORTER; 07 Jun 2017_CLASS ACTION REPORTER; 01 Jun 2017_CLASS ACTION REPORTER; 18 May 2017_CLASS ACTION REPORTER; 03 M ay 2017_RIA Novosti; 14 Apr 2017_TARGETED NEWS SERVICE; 31 Mar 2017_MISSOURI LAWYERS MEDIA; 23 Mar 2017_NEWS RELEAS E WIRE; 23 Mar 2017_Business & Human Rights Resource Centre (Main) NemaStrike Launch Temporarily Halted due to Skin Irritation Claims In November 2017, Monsanto temporarily halted the launch of NemaStrike due to complaints allegations of the product's alleged negative health effects. NemaStrike can be used for the protection of crops including cotton, corn and soybeans against worms. According to Monsanto it conducted three years of field study in preparation for a full launch and more than 400 people used the product in 2017 as part of trials. The declared in a statement that cases of skin irritation, including rashes, have been limited. According to the company, these appear to be associated with the application and handling of the seed treatment product. The company also said that users who suffered problems may not have followed instructions to wear protective equipment. UPDATES: 02 Nov 2017: Monsanto halts launch of chemical after users complain of rashes. (Reuters) Source: 02 Nov 2017 Reuters CCI Investigation into Allegedly Unreasonable Royalties for GM Cotton Seeds in India In February 2016, the Competition Commission of India (CCI) announced that it launched an investigation into the suspected abuse of dominant market position of Mahyco Monsanto, a joint venture between Monsanto and Mahyco. The probe was prompted by a complaint filed by India's Ministry of Agriculture, on behalf of local farmers and their organizations, of unreasonably high royalties charged by the company for its genetically modified (GM) cotton seeds. The company allegedly overpriced its products, utilizing its position as supplier of GM seeds used in more than 90 percent of cotton cultivation in India. UPDATES: 08 Sep 2017: Monsanto exits cotton seeds business in India. (THE ECONOMIC TIMES) 22 Aug 2017: US official to meet Agriculture Minister Radha Mohan Singh as Monsanto battles government. (THE ECONOMIC TIMES) 26 Sep 2016: Monsanto hits back at National Seed Association of India in row over seed patents. (Economic Times of India) 23 Sep 2016: Seed companies say Monsanto spreading falsehoods on patent rights. (THE ECONOMIC TIMES) 09 Sep 2016: Monsanto petition hearing on September 20. (Economic Times of India) 02 Sep 2016: Monsanto gets more time to file amended petition against CCI order. (THE ECONOMIC TIMES) MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 58 OF 64 EX P-3588 Page 58 of 64 SVEC OL.DMONS0570700 MONSANTO COMPANY (MON) ESG RATING g Date: April 2017 Assessment: Moderate Status: Ongoing Date: March 2017 Assessment: Moderate Status: Concluded Date: August 2016 Assessment: Moderate Status: Concluded 25 May 2016: Biotechnology firms upset with Bt Cotton royalty rates order. (THE ECONOMIC TIMES) 21 Apr 2016: HC allows T to fix trait value of BT seeds. (TIMES OF INDIA (ELECTRONIC EDITION)) 12 Apr 2016: Won't allow firms such as Monsanto to exploit farmers: Radha Mohan Singh, Agriculture Minister. (THE ECONOMIC TIMES) 10 Mar 2016: Royalties paid to Mosanto cut by 70 pc. (BUREAUCRACY TODAY) 04 Mar 2016: Monsanto threatens to exit India over GM royalty row. (The Times of India) 17 Feb 2016: Competition Commission of India suspects Monsanto abused dominant position. (The Times of India) Source: 08 Sep 2017_THE ECONOMICTIMES; 22 Aug 2017_THE ECONOMIC TIMES; 26 Sep 2016_Economic Times of India Alleged Negative Health Impact of Glyphosate on Fetuses In March 2017, the neonatal intensive care unit of St. Francis Health in Indianapolis published the results of an ongoing study concerning the alleged negative impact of glyphosate on fetuses. Initial results from the study indicated that mothers who were exposed to the substance during pregnancy either had earlier births or had babies that weighed less. Tests were conducted on 69 expectant mothers and their newborn babies for the study. UPDATES: 12 Apr 2017: Study Shows Monsanto's Roundup Can Harm Fetuses. (Environmental Working Group) Source: 12 Apr 2017_Environmental Working Group GM Cotton Banned in Burkina Faso Due to Short Fiber Length Burkina Faso announced that it would phase out Monsanto's genetically modified cotton by 2018 because the length of cotton fibers it produced were too short. The Inter-professional Cotton Association of Burkina (AICB, a union of Burkina Faso's three-largest cotton producers, filed a XOF 48 billion (USD 82 million) compensation claim against Monsanto for lost harvest, and withheld USD 24 million in royalties from the company. After several months of negotiations, Monsanto and AICB reached a settlement in March 2017. The involved parties agreed to divide the disputed royalties, retaining 75% (USD 18 million) to the AICB and 25% (USD 6 million) to Monsanto. UPDATES: 09 Mar 2017: Monsanto Settles Cotton Dispute, Chased from West Africa. (RIA Novosti) 22 Apr 2016: Monsanto GM cotton banned by top African producer. (DAILY NEWS (BOWLING GREEN, KENTUCKY)) Source: 09 Mar 2017_RIA Novosti; 22 Apr 2016_DAILY NEWS (BOWLING GREEN, KENTUCKY) Protests Against Cordoba Plant Monsanto has faced opposition from residents of Malvinas Argentinas in Cordoba, Argentina over its proposed construction of a treatment plant for genetically modified (GM) corn in the area. The project involves the construction of over 200 silos and the use of agrochemical substances for the containment and treatment of GM maize seeds. Locals and activist groups led by the Malvinas Lucha por la Vida (Malvinas Assembly Fighting for Life), since June 2013, have conducted protests and raised concerns regarding the negative health impacts that may result from the potential release of chemicals from the facility. In August 2016, local NGOs including Grain reported that Monsanto has abandoned its facility construction in Cordoba. The company also purportedly started dismantling installations at the site. NGO representatives noted that they are awaiting confirmation on the alleged project shutdown. As of September 2017, Monsanto had not released an official statement on the matter. UPDATES: 12 Aug 2016: Monsanto in retreat: movement from the grassroots. (Grain) 20 Jan 2016: Argentine Social Movements Strike Back Against Monsanto. (teleSUR) In December 2015, a local court in Malvinas Argentinas released an order requiring activists, for 24 hours, to give free passage to company personnel and machinery at the construction site of Monsanto's GMO treatment plant. The order was immediately opposed by advocacy groups. Numerous NGOs called for their members to assemble at the encampment to reinforce the blockade. The groups further made a public announcement, declaring a state of "permanent alert" at the site. NGOs also launched protests in cities around Argentina in January 2016 to stress their opposition to the GMO treatment plant. 06 Mar 2015: Argentina takes a stand against Monsanto. (La Opinion) Despite the termination of construction at Monsanto's Argentina facility, the protesters' encampment was still in place. The Malvinas Assembly and other organizations declared that they will sustain their efforts and oppose Monsanto should it attempt to pursue the development of the plant. Apr 2014: The blockade at Monsanto's Argentina facility was still in place and demonstrations were ongoing. The Malvinas Assembly and other organizations declared that they will sustain their efforts until the project was completely shut down. Feb 2014: The government of Cordoba rejected Monsanto's EIA for failing to identify the relevant impacts and resulting mitigation measures of its treatment plant. The company subsequently appealed to the Environment Secretariat as well as the Ministry of Water, Environment and Energy but was denied approval by both. Jan 2014: A Malvinas Argentias court ruled in favor of the locals. The legal body ordered Monsanto to halt construction at Cordoba plant and prohibited the municipality from authorizing activities connected to the project until the company accomplishes the environmental impact assessment and undergoes public hearing or local referendum. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 59 OF 64 EX P-3588 Page 59 of 64 SVEC OLDMONS0570701 MONSANTO COMPANY (MON) ESG RATING g Date: March 2016 Assessment: Moderate Status: Ongoing Minor Controversies Date: December 2017 Assessment: Minor Status: Ongoing Jun 2013: Malvinas Argentinas residents launched a protest against Monsanto's proposed Cordoba-based treatment plant for genetically modified maize seeds. The demonstration followed the company's announcement that the first stage of construction would be complete by the end of 2013 and the plant would start operating by April 2014. The protesters stressed the potential negative health effects that may result from the plant's operation byproducts. Locals declared that the facility poses another health risk on top of the already prevalent respiratory illnesses and birth defects in the area, which they alleged were associated with exposure to Monsantos's product. Roundup, used for the cultivation of soy in Cordoba. Dec 2013: Monsanto sought the assistance of local authorities to disperse the demonstrators. The company reported that masked protesters armed with sticks and stones attacked workers who tried to enter the facility. A violent confrontation ensued as riot police deployed at the site used rubber bullets and tear gas on the protesters. Approximately eight were injured from the clash. Nov 2013: Members of the Argentine Construction Union attacked the protest camp in Cordoba. The workers complained that the demonstration cut them off from their livelihood. Approximately 20 injuries resulted from the incident. Oct 2013: Operations at the site were halted when demonstrators disrupted the entry of supplies. Sep 2013: protesters set up a blockade in front of Monsanto's Cordoba plant. Subsequently, locals with the support of advocacy groups filed an injunction in a provincial court in Malvinas Argentinas against the company demanding the suspension of construction until the environmental impact study for the project was completed. Source: 12 Aug 2016_Grain; 20 Jan 2016_teleSUR; 06 Mar 2015_La Opinion; 2014/4/24_La Manana de Cordoba; 2014/4/5_Revoluti on News; 2014/3/26_The Argentina Independent; 2014/2/ll_The Wall Street Journal; 2014/l/25_IPS-lnter Press Service; 2014/1/9_R T; 2013/1 l/28_The Associated Press; 2013/12/2_IPS-lnter Press Service; 2013/09/30_Cadena 3; 2013/09/30J nfocampo; 2013/07/1 9_La Mana de Cordoba; 2013/06/27_La Manana de Cordoba; 20120831_organicbuenosaires.com EPA Investigation into Human Health Effects of Herbicides In March 2016, the EPA's Office of Inspector General announced that it would launch an investigation into the spread of superweeds and the human health impacts of the herbicides used for weed control. Among the chemicals which will be examined is glyphosate, the active ingredient of Monsanto's Roundup, whose excessive use in farms allegedly triggered the emergence of superweeds. UPDATES: 28 Mar 2016: EPA Watchdog to Investigate Monsanto GMOs and Superweeds. (Environmental Working Group) Source: 28 Mar 2016_Environmental Working Group Purported Class Actions over Alleged False Advertisement of Glyphosate-Containing Product UPDATES: 12 Dec 2017: MDL2741: "Sweat" Class Suit Transferred to N.D. Cal.. (CLASS ACTION REPORTER) 30 Nov 2017: MONSANTO COMPANY: Sued Over Illegal Sale of Roundup(R) Herbicide. (CLASS ACTION REPORTER) 20 Nov 2017: MONSANTO COMPANY: Faces "Sweat" Suit over Herbicide Roundup. (CLASS ACTION REPORTER) 31 Oct 2017: MONSANTO COMPANY: Faces "Kearney" Suit Over Roundup(R) Herbicide. (CLASS ACTION REPORTER) 23 Oct 2017: MONSANTO CO: "Martin" Suit Transferred to E.D. Mo.. (CLASS ACTION REPORTER) 12 Oct 2017: MONSANTO COMPANY: Faces "Foy" Suit over Sale of Herbicide Roundup. (CLASS ACTION REPORTER) 11 Oct 2017: MONSANTO COMPANY: 7 Suits Filed in Missouri over Roundup. (CLASS ACTION REPORTER) 04 Oct 2017: MONSANTO COMPANY: Court Narrows Claims in "Rawa". (CLASS ACTION REPORTER) 13 Sep 2017: MONSANTO CO: Brown Seeks to Recover Roundup(R)-Re!ated Damages. (CLASS ACTION REPORTER) 06 Sep 2017: MONSANTO COMPANY: "Turner" Suit Transferred to N.D. California. (CLASS ACTION REPORTER) 15 Aug 2017: MONSANTO COMPANY: Faces "Blair" Suit over Roundup Products. (CLASS ACTION REPORTER) 11 Aug 2017: MONSANTO COMPANY: Faces "Couch" Suit over Herbicide Roundup. (CLASS ACTION REPORTER) 31 Jul 2017: MONSANTO CO: Overstreet Sues over Roundup Pesticide in E.D. Pa.. (CLASS ACTION REPORTER) 31 Jul 2017: MONSANTO CO: Blitz et al. Sue over Roundup Pesticide in Wisconsin. (CLASS ACTION REPORTER) 11 Jul 2017: MONSANTO CO: Faces "Abbott" Suit Over Roundup Concentrates Ad. (CLASS ACTION REPORTER) 01 Dec 2016: MONSANTO CO: Faces "Martin" Suit Over Roundup False Ad. (CLASS ACTION REPORTER) 25 Nov 2016: MONSANTO COMPANY: Court Trims Mislabeling Claims in "Carias" Suit. (CLASS ACTION REPORTER) 27 Aug 2015: MONSANTO CO: Removes "Mirzaie" Suit to California District Court. (CLASS ACTION REPORTER) 06 Jul 2015: MONSANTO CO: Faces False Advertising Class Action in California. (CLASS ACTION REPORTER) Source: 12 Dec 2017_CLASS ACTION REPORTER; 30 Nov 2017_CLASS ACTION REPORTER; 20 Nov 2017_CLASS ACTION REPORTER; 31 Oct 2017_CLASS ACTION REPORTER; 23 Oct 2017_CLASS ACTION REPORTER; 12 Oct 2017_CLASS ACTION REPORTER; 11 Oct 2017_CLA SS ACTION REPORTER; 04 Oct 2017_.CLASS ACTION REPORTER; 13 Sep 2017_CLASS ACTION REPORTER; 06 Sep 2017_CLASS ACTION RE PORTER; 15 Aug 2017_CLASS ACTION REPORTER; 11 Aug 2017_CLASS ACTION REPORTER; 31 Jul 2017_CLASS ACTION REPORTER; 31 Jul 2017_CLASS ACTION REPORTER; 11 Jul 2017_CLAS5 ACTION REPORTER; 01 Dec 2016_CLASS ACTION REPORTER; 25 Nov 2016_CLASS A CTION REPORTER; 27 Aug 2015_CLASS ACTION REPORTER; 06 Jul 2015_CLASS ACTION REPORTER MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 60 OF 64 EX P-3588 Page 60 of 64 SVEC OL.DMONS0570702 MONSANTO COMPANY (MON) ESG RATING g Date: August 2017 Assessment: Minor Status: Ongoing Date: September 2016 Assessment: Minor Status: Concluded Purported Class Action by Migrant Farmworkers over Alleged FLSA Violations due to Failure to Pay Minimum Wage UPDATES: 25 Aug 2017: MONSANTO: Migrant Farmworkers Sue Over FLSA Violations. (CLASS ACTION REPORTER) Source: 25 Aug 2017_CLASS ACTION REPORTER Personal Injury Claims Related to PCBs _____Monsanto, its former parent Pharmacia LLC, and the latter's former subsidiary, Solutia Inc. have been involved in numerous personal injury lawsuits filed on behalf of approximately 750 individuals in state courts in St. Louis, Missouri and Los Angeles, California. The plaintiffs claimed to have developed non-Hodgkin lymphoma due to exposure to polychlorinated biphenyls (PCR) manufactured by Monsanto from the 1930's to 1970's. The complainants claimed that the company's production of PCBs for decades resulted in high levels of air and water PCB contamination in areas surrounding the facilities that manufactured the chemical. Monsanto stopped manufacturing PCBs in 1977. In September 2016, Monsanto reached a settlement with the plaintiffs in order to resolve the personal injury lawsuits. The company paid approximately USD 280 million as part of the settlement. As declared under Monsanto's indemnity agreements with Pharmacia (now a Pfizer subsidiary) in 2000 and Solutia (now an Eastman Chemical subsidiary) in 2008, it has assumed the defense of the personal injury claims. UPDATES: 19 Oct 2016: 10-K, 2017. (Monsanto) 29 Sep 2016: Dangerous Monsanto Chemical Remains in Thousands of Schools. (Environmental Working Group) 15 Aug 2016: United States Courts Opinions: United States District Court Eastern District of Massachusetts: TOWN OF PRINCETON, Plaintiff, v. MONSANTO COMPANY, SOLUTIA INC., and PHARMACIA CORPORATION, Defendants.. (US OFFICIAL NEWS) 20 Jul 2016: United States Courts Opinions: United States District Court Eastern District of Missouri: Case: 4:16-cv-00536-PLC. (US OFFICIAL NEWS) 26 May 2016: Jury reaches $46 million verdict against Monsanto over PCBs. (ASSOCIATED PRESS FINANCIAL WIRE) 05 Apr 2016: Company cleared after accusations of causing disease from PCB exposure. (CITY NEWS SERVICE) 01 Apr 2016: United States Courts Opinions: United States District Court Eastern District of Missouri: Case: 4:15-cv-00844-AGF. (US OFFICIAL NEWS) [accessed on Mar 7 2016]: Newsroom. (Monsanto website) 09 Dec 2015: MONSANTO: School Board File Suit Over PCB Cleanup. (CLASS ACTION REPORTER) A St. Louis school joined the mounting claims against Monsanto for alleged PCB contamination. 02 Jul 2015: Plaintiffs' attorneys ask for up to $70M in PCBs case. (MISSOURI LAWYERS MEDIA) 05 Jun 2015: Residents from 7 states allege Monsanto chemical led to cancer. (ST. LOUIS BUSINESS JOURNAL) 02 Jul 2015: MONSANTO CO: Two Mass. Towns Lose in 1st Round of PCB Litigation. (CLASS ACTION REPORTER) 31 May 2015: 10-Q2015. (Monsanto) Source: 19 Oct 2016_SEC Form 10-K; 29 Sep 2016_Environmental Working Group; 2013/ll/30_Monsanto 10-Q Report; 2013/07/0 l_St. Clair County Circuit Clerk GOVERNANCE CONTROVERSIES Moderate Controversies Date: October 2017 Assessment: Moderate Status: Ongoing India: Withdrawal of Application for Introduction of Bollgard II Roundup Ready Flex Technology In August 2016, Monsanto withdrew its application to introduce a new technology on genetically modified (GM) cotton seeds, named Bollgard II Roundup Ready Flex, in protest of government regulations affecting GM crops. A government body had issued a proposal that would have compelled Monsanto to share its technology with local seed companies. After a protest by Monsanto and other international seed companies, the government body withdrew the proposal. Subsequently, Monsanto formed an alliance with other international seed companies to address concerns over increased government regulation over the GM seed and food crop industry. UPDATES: 14 Oct 2017: Andhra Pradesh revokes order to check planting of Monsanto GM cotton. (LiveMint) 28 Aug 2016: Global seed giants join hands against the govt's proposed regulatory mechanism. (THE TIMES OF INDIA (TOI)) 25 Aug 2016: UPDATE 2-GM mustard clears hurdle in India but more remain. (Reuters) 24 Aug 2016: Exclusive: Monsanto pulls new GM cotton seed from India in protest. (Reuters) Source: 14 Oct 2017_LiveMint; 28 Aug 2016_THE TIMES OF INDIA (TOI) MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 61 OF 64 EX P-3588 Page 61 of 64 SVEC OLDMONS0570703 MONSANTO COMPANY (MON) ESG RATING g Date: April 2017 Assessment: Moderate Status: Ongoing Minor Controversies Date: May 2017 Assessment: Minor Status: Ongoing Date: February 2016 Assessment: Minor Status: Concluded Date: February 2016 Assessment: Minor Status: Concluded Monsanto Challenges Moratorium on Cultivation of GMO Crops in Maui, Hawaii In November 2014, a moratorium on the planting and cultivation of genetically modified (GM) crops in Maui County in Hawaii was approved through a local referendum. GM manufacturers Monsanto and Dow Chemical opposed the ordinance and subsequently filed a lawsuit against the local government to challenge the decision. In June 2015, a Maui District Court judge struck down the GMO ban. Subsequently, three counties in Hawaii appealed the ruling. In November 2016, a circuit court in Hawaii upheld the 2015 ruling and declared that the appellants cannot enforce their own regulations and bans on GM crops. Advocacy group leaders stated that they would pursue all legal alternatives, including launching another appeal. As of April 2017, Monsanto confirmed that the moratorium on GM crops in Maui was no longer in effect. UPDATES: 11 Apr 2017: Monsanto Hawaii: Our Perspective on the Maui County Initiative. (Monsanto) 19 Nov 2016: Hawaii Counties Can't Regulate GMOs and Pesticides According to New Ruling. (Fortune) 15 Jun 2016: Rules on GMO crops in Hawaii heads to US appeals court. (ASSOCIATED PRESS FINANCIAL WIRE) 01 Jul 2015: BIOTECH: Judge tosses Maui's GMO ban. (GREENWIRE) A district court judge nullified Maui County's ban on GMO cultivation, saying that the county did not have authority to enforce such an ordinance. Representatives from the local government declared that the county would abide by the ruling. Meanwhile, members of anti-GMO advocacy groups declared the intention to appeal the court's decision. 16 Jun 2015: Maui GMO case judge focuses on county authority to regulate. (ASSOCIATED PRESS FINANCIAL WIRE) 10 Mar 2015: Federal judge considers delaying Maui GMO ban hearings. (ASSOCIATED PRESS FINANCIAL WIRE) 16 Dec 2014: Maui group wins ability to intervene in GMO case. (Associated Press State & Local) 18 Nov 2014: Washington: Monsanto, Dow Chemical File Lawsuit to Destroy Maui County's GMO Ban. (US Official News) Source: 11 Apr 2017_Monsanto African Centre for Biodiversity Opposition to GMO Appeal Board and Minister of Agriculture, Forestry and Fisheries' Decision to Approve Commercialization of GMO Drought-Tolerant Maize Seed; Appeal Ongoing UPDATES: 03 May 2017: Appeal against GMO maize seed decision. (CAPE TIMES (SOUTH AFRICA)) Source: 03 May 2017_CAPE TIMES (SOUTH AFRICA) USD 80 Million Settlement over Alleged Accounting Violations Related to Roundup Rebates In February 2016, the Securities and Exchange Commission (SEC) announced that Monsanto agreed to pay USD 80 million in penalties to settle charges of its alleged violation of accounting rules and misstatement of its earnings for its product. Roundup. An SEC investigation revealed that the company had insufficient internal controls to account for millions of dollars in rebates it offered to Roundup distributors and retailers. The rebates were a component of a promotion Monsanto implemented after the sales of a generic version of its product undercut its business in 2009. According to the agency, Monsanto booked substantial revenue from the scheme from 2009 to 2011 but failed to recognize the accompanying costs, which resulted in its misstatement of consolidated earnings over a three-year period. UPDATES: 09 Feb 2016: Monsanto Paying $80 Million Penalty for Accounting Violations. (US Securities and Exchange Commission) Source: 09 Feb 2016_US Securities and Exchange Commission USD 80 Million Penalty Over Accounting Violations In February 2016, Monsanto agreed to pay USD 80 million to resolve allegations by the U.S. Securities and Exchange Commission (SEC) that it misstated its financial results over a three-year period and did not comply with accounting rules in relation to its Roundup product. According to the SEC investigation, Monsanto had inadequate internal accounting controls to account for rebates issued to distributors and retailers of Roundup. As such, the company failed to recognize the costs of the sales incentive program when it recorded revenues attributed to Roundup. As part of the settlement, the company also agreed to retain an independent consultant, while three executives also agreed to pay penalties. UPDATES: 09 Feb 2016: Monsanto Paying $80 Million Penalty for Accounting Violations. (U.S. Securities and Exchange Commission) Source: 09 Feb 2016 SEC News Release MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 62 OF 64 EX P-3588 Page 62 of 64 SVEC OLDMONS0570704 MONSANTO COMPANY (MON) ESG RATING g ISSUER COMMUNICATION SUMMARY Company Communication Past 15 Months Direction Outgoing Outgoing Incoming Outgoing Method Category E-mail Data Review - Report E-mail Data Review - Feedback Provided E-mail Data Review - Feedback Provided E-mail Data Review - Alert Research Product ESG Ratings ESG Ratings ESG Ratings ESG Ratings Date May 12, 2017 Feb 16, 2017 Feb 01, 2017 Jan 04, 2017 LEGEND Direction Outgoing: MSCI ESG Research contacts issuer. Incoming: Query by corporate issuer. Category Data Review - Alert: Notification of pending annual update of ESG Rating, and invitation to engage MSCI. Data Review - Report: MSCI ESG Research delivers report of updated ESG data Data Review - Feedback Provided: Feedback provided to MSCI ESG Research. Request for Information: Issuer inquiries; MSCI ESG Research queries. Published Report Sent: MSCI ESG Research delivers issuers' ESG product report that is posted to the MSCI ESG Manager platform. Other: Issuer notified of custom projects; Miscellaneous queries. MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. ESG RATINGS REPORT | PAGE 63 OF 64 EX P-3588 Page 63 of 64 SVEC OLDMONS0570705 MONSANTO COMPANY (MON) ESG RATING g Corporate Governance Details Included in this section is the MSCI ESG GovernanceMetrics report, providing in-depth corporate governance data and analysis SECTION CONTENTS COMPONENTS DIRECTOR VOTES SHAREHOLDER/MANAGEMENT PROPOSALS RELATED PARTY TRANSACTIONS GOVERNANCE STANDARDS DIRECTOR BIOGRAPHIES MSCI MSCI ESG RESEARCH LLC 2017 MSCI INC. ALL RIGHTS RESERVED. 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