Document VJ6GyyVwELN2MzyB7wmjmnXjK

Monsanto Co. Industry: Chemicals Domicile: United States Marketcap.: 52,640 mm. USD Ticker: NYSE:MON SUSTAINALYTICS CONTROVERSY REPORT Updated: Employees: 18 November 2017 Controversy Summary Qualitative Performance - Controversies O Highest Controversy Level Society & Community Incidents Social Impact of Products Low Employee Incidents Occupational Health and Safety Social Supply Chain Incidents Labour Relations - SC Customer Incidents Marketing Practices Governance Incidents Moderate Operations Incidents Emissions, Effluents and Waste Social Supply Chain Incidents Employees - Human Rights - SC Customer Incidents Anti-Competitive O Significant Product & Service High Society & Incidents Community Environmental Impact of Incidents Products Social Impact of Products Severe None Incidents Headquarters Distribution of Controversy Assessments Operations Incidents Environmental Supply Chain Incidents Product & Service Incidents Employee Incidents Social Supply Chain Incidents dd 3dd jt J d d d d d Customer Incidents j* d ddydd,/ddj?dd d Society & Community Incidents 33 >3 f -c? d -o' Business Ethics Incidents / ^dd d d d,dd d.dd d.d Governance Incidents dddd dd *ddddd dddd Public Policy Incidents i -v /v 3 > 3 Jp- ?d d d^dd? >>3 > 3 d d d d 33 > 3 Company Controversy Level Industry Controversy Level J' d./d_/d./ d cr d d d >33 >3 <T d d d 1 | 37 EX P-3587 Page 1 of 37 SVEC OLDMONS0570261 Controversies Environment - Qualitative Performance Operations Incidents Category 2 - Moderate Emissions, Effluents and Waste Environmental Supply Chain incidents No evidence of relevant controversies Product & Service Incidents Category 3-Significant Environmental Impact of Products ^V\ Outlook J Neutral Governance - Qualitative Performance Business Ethics Incidents Governance Incidents Category 2 - Moderate Business Ethics Intellectual Property Category 1 - Low Corporate Governance Public Policy Incidents Social - Qualitative Performance Employee Incidents Category 1 - Low Lobbying and Public Policy Category 1 - Low Occupational Health and Safety Social Supply Chain Incidents Customer Incidents Society & Community Incidents Category 2 - Moderate Employees - Human Rights - SC Labour Relations - SC Category 2 - Moderate Anti-Competitive Practices Marketing Practices Quality and Safety Category 4-High Community Relations Social Impact of Products Weapons Outlook \~ fJ Neutral SUSTAINALYTICS 2 | 37 EX P-3587 Page 2 of 37 SVEC OLDMONS0570262 Environment Controversies Operations Incidents Category 2 Moderate Related Events Emissions, Effluents and Waste Energy Use and GHG Emissions None Land Use and Biodiversity None Water Use None Overall Controversy Level Based on our event level assessment of impact and risk as moderate, the company has been assigned an overall controversy assessment of category 2. Emissions, Effluents and Waste Category 2 Moderate ^Locations: United States, United Kingdom r Tags: Emissions to Air, Degradation & Contamination (Land) Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO O Q . v s Fine for failure to report toxic releases NBCNews.com - 26 March 2015 The Soda Springs facility, operated by P4 Production, a wholly-owned Monsanto subsidiary, has agreed to pay a USD 600.000 fine to the U.S. Environmental Protection Agency (EPA) for failing to report uncontrolled toxic chemicals releases. Officials stated that the company omitted to report emitting hydrogen cyanide, sulfur dioxide, nitrogen oxides and mercury between 2006-2009, despite the fact that the companies are required by law to report all such releases. Wales contamination clean-up payment The Guardian -14 July 2015 Monsanto, BP and Veolia agreed to pay for the contamination of the Welsh Brofiscin quarry with Agent Orange derivatives, dioxins and PCBs. The clean-up was completed by the Environment Agency in Wales in 2012 The clean-up targeted leakages from the containers with toxic waste that Veolia as the contractor of Monsanto and BP deposited at the site in the 1960s-1970s and which posed significant health risk for the neighboring communities. The clean-up cost the Environment Agency paid were around GBP 1.25m (USD 1.95m), but the amounts each company agreed to pay were not disclosed. ^ ^ SUSTAINALYTICS 3 | 37 EX P-3587 Page 3 of 37 SVEC OLDMONS0570263 Product & Service Incidents Category 3 Significant Related Events Outlook Neutral Environmental impact of Products Carbon Impact of Products None Overall Controversy Level Based on our event level assessment of impact and risk as significant, the company has been assigned an overall controversy assessment of category 3. Environmental Impact of Products Category 3 Significant Locations: Mexico, Mexico City, Federal District, Mexico, Yucatan, Mexico, United States, Flawaii, USA, Arkansas, USA, South Dakota, USA, Missouri, USA Tags: Environmental impact of products Outlook Neutral Q O O SUSTAINALYTICS This event is assessed with a Neutral outlook for the next two years. A significant impact on Monsanto is unlikely, but the risk of dicamba's ban by the US EPA is expected to remain high or increase over the next year. Monsanto has a strong products safety and stewardship programme. Crop protection products are also subject to the Life Cycle Stewardship Activities Management Process (LCStAMP), which aims at ensuring quality and safety of the products produced. However, given the incidents faced by the company, the implementation of these programme seems deficient. In addition, even though the company has implemented a new label for the product, farmers have claimed that the upgraded label instructions were too complex to be followed. This indicates that the company has not yet taken the necessary steps to manage the environmental impact of its herbicide. As a result, this could lead to additional lawsuits or ban against Dicamba. However, the extent of the bans and the lawsuits is still limited and there is not yet certainty that the EPA will ban the product. In addition, given that Monsanto is highly diversified, it is unlikely to be strongly impacted by the bans and the lawsuits against Dicamba. Sustainalytics would consider an outlook or rating downgrade if the company faces further scrutiny in the form of bans from additional US states, countries, or by the EPA. A negative reassessment would also be considered if Monsanto faces a significant additional amount of lawsuits by farmers, regarding the harmful effects of the dicamba herbicide as well as for its GMO crops, or for other of its products. An outlook or rating upgrade will be considered if the investigations conducted by regulators conclude that dicamba does not significantly affect crops and that the state bans are lifted. A positive reassessment of the rating would also be considered if Monsanto addresses current concerns raised by farmers and states and implement a customized product stewardship programme for farmers to mitigate dicamba's negative environmental effects. Assessment Monsanto has been involved in controversies regarding the environment impact of its dicamba herbicide. Dicamba herbicide was approved for the first time in 2016 by the US EPA. Since then, more than 600 complaints have been filled by farmers as the herbicide drifted to the nearby crops, leading to more than 2.5 million acres of crops being damaged. Monsanto, together with BASF and DuPont, received several lawsuits by farmers. As of August 2017, Dicamba's effects are investigated by regulators from 17 different US states. The Arkansas and Missouri departments of agriculture temporary banned the usage of Monsanto's herbicide dicamba. In October 2017, the Iowa Department of Natural Resources also received 1,000 complaints for oak tree damage caused by pesticides, including dicamba. In response to the criticisms, Monsanto created a 4,550-word label containing detailed instructions regarding dicamba's usage, approved by the US EPA. Additionally, in October 2017, Monsanto filed a lawsuit against the Arkansas Plant Board in order to prevent the regulator from enforcing a ban for dicamba. The herbicide has a two-year expiration deadline and the US EPA states that if the negative lateral effects of the product would persist, dicamba's license will not be renewed and therefore the product will be banned by the 15th April 2018. In addition to that, Monsanto has also faced some controversies regarding its genetically modified crops in Mexico, some of which have been banned. Sustainalytics assess the rating for Environmental Impact of Products at Category 3 due to the 4 | 37 EX P-3587 Page 4 of 37 SVEC OLDMONS0570264 significant impact on stakeholders and risks for the company. More than 600 farmers, who used Monsanto dicamba as herbicide for their crops, reported significant crop damage due to the drift of the relative herbicide. The significant negative environmental effects of dicamba caught the regulatory attention from different US states. Two US states have placed a temporary ban for dicamba usage and 17 others are currently analyzing its negative side effect. The ERA is also considering banning the dicamba herbicide the 15th of April 2018, if the lateral negative effect on the environment would persist. Monsanto is therefore facing significant regulatory risks. Monsanto could also face financial risks if the US ERA decide for banning the product, as it would cut Monsanto's sales of dicamba herbicide as well as of its Xtend product. Furthermore, Monsanto's unresponsiveness regarding dicamba complaints and the company's discrepancy between its management programme and the actual impact of its products, weakens our confidence in Monsanto's management of dicamba's negative environmental impact. Environmental Impact of Products Incidents Incidents Timeline Highest of Impact or Risk o Main Incident Main Incident Impact OOOOOOOOOO0 Risk OOOOOOOOOO Q O Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Q Impact OOOOOOOOOO 0 Risk OOOOOOOOOO @ Update: Arkansas regulator votes on dicamba ban New York Times - 08 November 2017 The Arkansas State Plant Board voted to ban sprayings of dicamba, a chemical used in weed killers manufactured by Monsanto, BASF and DuPont, between April 16 and October 31, 2018. The ban, which came after a number of farmers complained that their crops were harmed by dicamba drifts, would need to be approved by a state legislative subcommittee before it could be implemented. Nevertheless, dicamba manufacturers claimed that the product was safe and Monsanto recently filed a lawsuit against the Arkansas regulator in order to prevent it from enforcing the ban. Moreover, Monsanto asked for Board member Terry Fuller to be removed from the discussions, due to suspicions of bias. Fuller eventually participated in the meeting, but refused to vote. Update: Company files lawsuit against Arkansas regulator over dicamba limitations Washington Post - 20 October 2017 Monsanto filed a lawsuit against the Arkansas Plant Board in order to prevent the regulator from enforcing a ban for dicamba products. According to the lawsuit, the Board acted beyond its authority when it proposed the limitations on dicamba sprayings and failed to take into consideration the research Monsanto submitted to federal regulators. Moreover, the regulator granted an initial approval on restricting the dicamba use between April 16 and October 31st, 2018, and Monsanto stated that it will modify its complaint in case the restriction is ultimately approved. The lawsuit came after the Environmental Protection Agency confirmed that it reached an agreement with Monsanto, BASF and DuPont to label dicamba products as "restricted use" and to provide additional training to workers using the product. Update: Complainants in three US states link dicamba to oak tree damage Organic Consumers Association - 09 October 2017 The Iowa Department of Natural Resources received around 1,000 complaints about oak tree damage caused by pesticides, including dicamba, after soybean and cotton farmers previously complained that their crops were damaged by dicamba drifts. Moreover, similar complaints were filed in Illinois and Tennessee. Monsanto, one of dicamba's manufacturers, did not immediately comment on the matter, but the company previously stated that crop damage was caused by the pesticide's misuse. SUSTAINALYTICS 5 | 37 EX P-3587 Page 5 of 37 SVEC OLDMONS0570265 Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Q Q Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ o o Impact OOOOOOOOOO 0 Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Q Update: Company petitions Arkansas officials over dicamba restrictions Reuters UK - 07 September 2017 Monsanto petitioned Arkansas agricultural officials and asked them to reject an April 15, 2018, recommended ban on dicamba use in the state. The proposed ban was recommended by a state task force in order to protect plants vulnerable to the chemical. Farmers previously complained that the herbicide was prone to drifting and damaging soybeans and other crops. In a filing with the Arkansas State Plant Board, the company claimed that the proposed deadline "is not based on scientific data, much less on any scientific consensus" related to the alleged crop damage. Arkansas previously imposed a temporary ban on dicamba in July 2017. Update: US EPA to regulate dicamba usage New York Times - 05 September 2017 The Environmental Protection Agency (EPA) declared that it considered setting a deadline for dicamba sprayings in 2018, after numerous farmers complained that their crops were damaged due to dicamba drifts. University specialists from Arkansas, Missouri, Illinois, Iowa and North Dakota raised concerns regarding dicamba products and asked the EPA to set usage guidelines in order to prevent future crop damages. The EPA had several meetings with state officials in relation to dicamba, but did not take a final decision so far. The deadline for the dicamba sprayings would affect the sales of dicamba manufacturers Monsanto, BASF and DuPont. Update: Company allegedly denied dicamba volatility tests Shanghai Daily - 28 August 2017 According to media outlet Reuters, Monsanto denied university researchers to test its unapproved XtendiMax dicamba product for volatility. The researchers interviewed by Reuters confirmed that they received samples of the herbicide from before being approved by the Environmental Protection Agency. Nevertheless, they were explicitly forbidden to test the samples for volatility. Monsanto's Vice President of Global Strategy, Scott Partridge, declared that the volatility tests were not necessary, as the company considered that XtendiMax was less volatile compared to a previous dicamba version which the researchers found to be safe. Nonetheless, a high number of farmers recently reported that their crops were harmed due to alleged dicamba drifts. Update: South Dakota link damaged crops to dicamba Tacoma News Tribune - 24 August 2017 Around 150 South Dakota farmers reported that their crops were harmed by the drift of herbicide dicamba. Monsanto, BASF and DuPont manufacture the three dicamba products that could be used with dicamba-tolerant soybeans. Farmers complained that dicamba's instructions were too difficult to follow, which resulted in the product's drift due to poor application. State Department of Agriculture official Tom Gere declared that the department was analyzing whether it should ban the product in the state. Update: Farmers file lawsuit over dicamba label instructions Seeking Alpha - 21 August 2017 A number of farmers filed a civil lawsuit against Monsanto, BASF and DuPont in a St. Louis court over the complex label instructions of weed killer dicamba. In order to minimize the product's side effects, Monsanto created a 4,550-word label containing detailed instructions regarding dicamba's usage, which was reviewed and approved by the US Environmental Protection Agency (EPA). Nevertheless, farmers argued that it was impossible to follow the instructions and that the herbicide could not be used safely. Monsanto responded that the label was not difficult to follow, despite being detailed. Update: US EPA reviews dicamba directions Reuters Africa - 01 August 2017 The US Environmental Protection Agency (US EPA) is currently reviewing the directions of use for Monsanto's herbicide dicamba. The review was triggered by hundreds of reports from farmers who alleged that their crops suffered from drift damage related to the herbicide. The EPA approved the current formulation of dicamba in 2016. The approval was set for two years because older formulations of the herbicide were known to drift away onto nearby fields. Dicamba's effects are also investigated by regulators from 17 different states, while the damage reported allegedly exceeds 2.5 million acres of crops. The regulators reportedly received more than 1,400 complaints related to drift damage so far. SUSTAINALYTICS 6 | 37 EX P-3587 Page 6 of 37 SVEC OLDMONS057Q266 Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ O 12. Impact OOOOOOOOOO @ Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO o o Impact OOOOOOOOOO 0) Risk OOOOOOOOOO Q Q Impact OOOOOOOOOO @ Risk OOOOOOOOOO T oQ Update: Three US states temporarily restrict dicamba use Organic-market.info -18 July 2017 The Arkansas and Missouri departments of agriculture placed a temporary ban on the usage of Monsanto's herbicide dicamba following more than 600 complaints related to drift damage. The Tennessee Department of Agriculture (TDA) also implemented a series of emergency rules concerning the application of dicamba. The temporary restrictions are valid for the following 120 days. According to CNBC, According to the complaints, the drift damage was caused by farmers who did not apply the herbicide as per the labeled instructions. Robb Fraley, Monsanto's chief technology officer, also stated that farmers may have used older formulations of dicamba, which are more prone to drift. However, the company agreed to additional safeguards for product use. Update: Arkansas farmers file lawsuits over Dicamba drift damage EcoWatch - 21 June 2017 According to media outlet EcoWatch, Arkansas farmers filed a class action lawsuit against Monsanto and BASF and claimed that the two companies' dicamba herbicide harmed their crops. According to the complaint, Monsanto and BASF released the dicamba seed technology without providing a safe and approved alternative for a herbicide. As a result, the farmers claimed that their crops were damaged by herbicide drifts sprayed with older and illegal versions of a very toxic herbicide. Arkansas' agriculture department allegedly received 135 dicamba misuse complaints across 17 counties. Farmers from at least ten US states previously filed complaints against Monsanto on similar grounds. Update: Farmers in 10 US states file lawsuits over dicamba damage South East Missourian -17 February 2017 Farmers from 10 US states filed class action lawsuits against Monsanto over the alleged damage to their crops caused by the illegal usage of variations of the company's dicamba herbicide. The complaint filed in a Missouri district court claimed that Monsanto allowed farmers to plant its Xtend cotton and soybeans, which are tolerant to the dicamba herbicide, without providing a safe alternative to use on the crops. As a result, farmers allegedly used variations of dicamba illegally, which allegedly drifted to neighouring fields and caused crop damage. Similar claims were brought in November 2016 by Bill Bader, who operates Missouri's largest peach producer Bader Farms. Peach producer files lawsuit in Missouri over crop damage 4 Traders - 07 December 2016 Bill Bader, who operates Missouri's largest peach producer Bader Farms, filed a lawsuit against Monsanto, claiming that the company was responsible for the illegal herbicide use which allegedly caused widespread crop damage in Missouri and neighboring states. According to the lawsuit, Monsanto marketed crop varieties resistant to herbicide Dicamba for the past two years, but only recently received approval for the herbicide itself. Farmers allegedly used highly volatile, unauthorized forms of Dicamba during that time-frame, which may have spread to surrounding nonresistant crops, including Bader's peach farms. The owner claims Monsanto should have foreseen the illegal use of the herbicide. The plaintiff estimated his losses stemming from the unauthorized use of Dicamba at USD 1.5 million in 2015 and was still assessing damages for 2016. Update: Mexican court uphelds ban on GMO corn OpEdNews.com - 31 January 2017 A Mexican court upheld a 2013 ruling which placed a temporary ban on GMO corn-growing, including pilot plots. The decision follows a legal challenge on the effects GMO crops have on the environment. According to media outlet Reuters, a Monsanto executive disclosed that the ban is likely to continue for years, as the legal challenge is developing very slowly. Update: Injunction granted for GM soy seeds International Business Times - 05 November 2015 Mexico's Supreme Court granted an injunction against the country's agriculture ministry, who had given the approval for the use of GM soy seeds in Mexican states of Campeche and Yucatan. The court argued that the ministry's approval violated the rights of local indigenous communities, which were not consulted before the approval. The use of GM soy seeds will remain blocked until the affected communities will be consulted. Monsanto is one among the list of interested parties in the case. SUSTAINALYTICS 7 | 37 EX P-3587 Page 7 of 37 SVEC OLDMONS057Q267 Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ o Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ o Impact OOOOOOOOOO Risk OOOOOOOOOO o o Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO o Update: Mexico ban on GM corn GMWatch - 05 December 2014 The Mexican Chapter of the Permanent Peoples' Tribunal, a human rights international opinion tribunal independent of state authorities, has demanded the Mexican government to prohibit the planting of GM maize in the country. The possible prohibition could affect several companies which have submitted applications to plant GM maize since 2012, including Monsanto. However, recent Mexican authorities' decisions seem to support the interests of the companies by filing legal claims against the suspension of GM crops. Update: Ban on GM soybeans cultivation La Opinion Diario - 30 July 2014 A Yucatan judge ruled to nullify permits originally given to Monsanto to plant genetically modified (GM) soybeans in the Yucatan state. The judgement came in respect of the right of "self-determination" for indigenous communities who had voiced their discontent with the authorisation of the permits, and the alleged threats of the GM soy to their honey production. The ruling followed a similar judgement in March 2014 in the region of Campeche, banning GM soybean from being planted in the state. Mexico ban on Monsanto's GM corn care2 -16 October 2013 According to the Environmental Food and Justice, the District Court for Civil Matters of Mexico City gave its final approval to a law that will prohibit the cultivation of any variety of genetically modified corn, due to alleged hazards to the environment. As a consequence, Monsanto's genetically modified seeds can no longer be sold and cultivated in Mexico. Monsanto appealed the decision and requested that the judge be removed from the court on grounds of having stated his opinion on the case before the sentence was pronounced. New regulations could discharge Monsanto from GM grass clean-up operations Health Impact News - 08 January 2017 Media outlets reported that the US Department of Agriculture's (USDA) recent decision to remove regulations on the genetically modified grass seeds produced by Scotts Miracle Gro (in partnership with Monsanto) would discharge the two companies of their responsibility to clean up the grass fields where their GM seeds breaded with natural non-GM seeds. Mass-media reported that certain grass sections of the US state of Oregon were contaminated with GM grass because of two incidents from 2003 when winds blew the GM grass seeds away from the test fields. In 2007, the USDA held Scotts accountable for the two incidents and fined the company USD 500,000. The initial target market for the GM grass seeds was the golf course industry. US EPA investigates pesticide misuse in Hawaii Civil Beat -15 November 2016 The US Environmental Protection Agency initiated an investigation into Monsanto's potential pesticide misuse in Hawaii. EPA spokesman Dean Higuchi confirmed that an investigation is ongoing, but refused to share any any additional details or provide a copy of the complaint filed against the company. A Monsanto spokeswoman also stated that she did not have enough information about the investigation to comment. Monarch butterfly biodiversity loss linked to Roundup Russia Today -10 February 2015 A statistics released by the U.S. Fish and Wildlife Service revealed that 90% of the population of monarch butterflies has vanished across the U.S. since the 1990s, as result of the forced eradication of milkweed plants. The study correlated the resulting biodiversity loss with the over-usage of Roundup herbicides. Roundup was introduced in the 1970s and is sold to farmers and homeowners as an effective method for eliminating broad-leaf weeds. ^ ^ SUSTAINALYTICS 8 | 37 EX P-3587 Page 8 of 37 SVEC OLDMONS0570268 Social Controversies Employee Incidents Category 1 Low Related Events Occupational Health and Safety Employees - Human Rights None Labour Relations None Overall Controversy Level Based on our event level assessment of impact and risk as low, the company has been assigned an overall controversy assessment of category 1. Occupational Health and Safety Category 1 Low Locations: Brazilia, United States Tags: Health and Safety Impact OOOOOOOOOO Risk OOOOOOOOOO Fine for lack of proper safety measures Reuters -18 May 2015 O U After a Brazilian safety inspector found four workers handling pesticide containers without proper safety measures, Brazilian authorities stated they would seek to impose a fine of USD 16.6 million on Inpev, an industry group established by producers to meet disposal rules, as well as on several manufacturers, including BASF, DuPont, Monsanto, Nufarm, Syngenta, Adama, FMC, and Nortox, for potentially exposing workers to toxic agricultural chemicals. According to Brazilian law, both producers and buyers are required to ensure proper mechanisms for the safe disposal of chemical containers. Impact OOOOOOOOOO Risk OOOOOOOOOO Worker injured at company's Soda Springs facility Idaho State Journal - 09 April 2017 Q O A Monsanto employee was critically injured after falling from a suspended grate at the company's facility in Soda Springs. The worker was immediately transported to Caribou Memorial Hospital after the grate gave way unexpectedly. The company is looking into the incident but has yet to issue a formal statement. No further details were disclosed. Social Supply Chain Incidents Category 2 Moderate Related Events Employees - Human Rights - SC Labour Relations - SC Community Relations-SC None Occupational Health and Safety - None Society - Human Rights - SC None Overall Controversy Level Based on our event level assessment of impact and risk as moderate, the company has been assigned an overall controversy assessment of category 2. .1% SUSTAINALYTICS 9 | 37 EX P-3587 Page 9 of 37 SVEC OLDMONS0570269 Employees - Human Rights - SC Category 2 Moderate Locations: India Tags: Child Labour Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO Risk OOOOOOOOOO Labour Relations - SC Category 1 Low Update: Child labour on Indian vegetables seeds farms India Committee of the Netherlands - 24 November 2015 A new report published by a Dutch NGO revealed that multi-national companies, including Monsanto and its partners, Mahyco (25% owned by Monsanto), and Seminis (wholly owned by Monsanto), sourced vegetables seeds from Indian farms associated with child labour and labour rights violations. According to the research, children under 14 accounted for about 16% of the total workforce on hybrid vegetables seeds production farms in India. The report, based on interviews with children and workers from 235 vegetables seeds farms in 20 villages of Karnataka and Maharashatra, also alleged poor labour conditions and wages below the minimum living wage. The percentage of child labourers on Monsanto's Seminis, Bayers's Nunhems and Syngenta's farms together was less than 2.5 in Karnataka and less than 2% in Maharashatra. The report acknowledged Monsanto's efforts in reducing child labour in its farms but urged all companies to further improve their practices. Child labour on Indian cotton farms India Committee of the Netherlands - 23 July 2015 A report published by a Dutch NGO revealed that multi-national companies, including Monsanto and its cottonseed partner Mahyco (25% owned by Monsanto), sourced cotton from Indian farms associated with child labour and labour rights violations. Hybrid cotton seeds production is said to have the highest number of child labourers among all industries in India. According to the research, children under 14 accounted for about 25% of the total workforce on cottonseed farms in India. The report, based on interviews with children and cotton workers from 396 cottonseed farms in 72 villages of six Indian states, also alleged poor labour conditions and wages below the minimum living wage. Mahyco and Monsanto work with a total of 84 farms in the area and the percentage of child labourers on Monsanto's and Bayer's farms together was less than 2%. The report acknowledged Monsanto's efforts in reducing child labour in its farms but urged all companies to further improve their practices. Locations: Illinois, USA Tags: Labour Relations Impact OOOOOOOOOO Risk OOOOOOOOOO Farm workers file lawsuit over wages in Illinois Organic Consumers Association - 02 July 2017 Roberto Perez-Perez and Armando Nieves, two migrant farm workers, filed a lawsuit against Monsanto in an Illinois district court and claimed that the company's contractors failed to properly reimburse them. According to the lawsuit, Monsanto violated the US Fair Labor Standards Act and the Agricultural Workers Protection Act by failing to ensure that its contractors paid workers their promised wages. The legal action also claimed that the company misrepresented the way the employees would be paid and failed to keep adequate payroll records. The plaintiffs only named Monsanto as a defendant in the litigation and took no legal action against the contractor. SUSTAINALYTICS 10 | 37 EX P-3587 Page 10 of 37 SVEC OLDMONS0570270 Customer Incidents Category 2 Moderate Related Events Anti-Competitive Practices Quality and Safety Marketing Practices Data Privacy and Security None Media Ethics None Overall Controversy Level Based on our event level assessment of impact and risk as moderate, the company has been assigned an overall controversy assessment of category 2. Anti-Competitive Practices Category 2 Moderate ^Locations: India, Brussels, Belgium ' Tags: Anti-competitive Practices Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO 0 Risk OOOOOOOOOO @ o o Impact OOOOOOOOOO 0) Risk OOOOOOOOOO @ Update: CCI orders probe into Amar Biotech complaint Financial Express - 04 October 2016 India's Competition Commission (CCI) ordered a third probe against Monsanto after Hyderabad-based Amar Biotech brought additional allegations of anti-competitive practices. According to the CCI, Amar Biotech, a local fertilizer and pesticide manufacturer, brought claims similar to those in previous complaints, including unfair trait value, limiting of scientific development relating to Bt cotton technology and Bt cotton seeds, denial of market access and leveraging of the dominant position in the Bt cotton technology market. Monsanto did not comment on the probe. The company previously stated that it would re-evaluate its position on the Indian cotton market due to the government's attempts to force it to share its patents with local competitors. Update: Company withdraws cotton ;eed application after Indian government proposal Reuters Africa - 25 August 2016 Monsanto withdrew its application for the Bollgard II Roundup Ready Flex cotton seed from India's Genetic Engineering Appraisal Committee, in protest of a government proposal that would force the company to share its proprietary technology with competitors. The proposal had been withdrawn temporarily after protests by global seed companies including Monsanto. The application process for the Bollgard II Roundup Ready Flex started in 2007 and was cancelled during its final stages. Mahyco, Monsanto's business partner in the country, stated that it would revive the application "at a suitable time". Update: Three more Indian companies file complaints alleging anti-competitive practices Hindustan Times -16 June 2016 India-based companies Kaveri Seeds, Ankur Seeds and Ajeet Seeds filed three more complaints with the Competition Commission of India alleging that Mahyco Monsanto Biotech (a 50:50 joint venture between Maharashtra Hybrid Seeds Company and Monsanto) abused its dominant position on the Bt cotton market. The CCI will investigate the companies' claims as part of the probe it launched in February following a complaint from the agriculture ministry. ^ ^ SUSTAINALYTICS 11 | 37 EX P-3587 Page 11 of 37 SVEC OLDMONS0570271 Impact OOOOOOOOOO t Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Quality and Safety Category 2 Moderate Update: Indian government cuts cotton seed royalties Bloomberg -10 March 2016 Following a dispute over licensing fees between the Indian government and Monsanto, the agriculture ministry capped the company's cotton seed royalties at INR 49 (USD 0.73) per 450-gram pack of Bt cotton seeds, a reduction of 70 percent compared to the previous margin. Monsanto had previously stated that it would consider withdrawing from the Indian market if the government made significant cuts to its seed royalties. The company did not release a statement following the ministry's decision. Investigation into anti-competitive seed pricing allegations Reuters -17 February 2016 India's antitrust regulator has opened an investigation into the alleged anti-competitive practices of Mahyco Monsanto Biotech (MMB), a local joint venture between Monsanto (50% ownership) and Mahyco Seeds. Local farmers and associations claim that Monsanto used its dominant position in the Indian market to set unreasonably high prices for its GM cotton seeds, which were introduced in India in 2002. Aside from selling the seeds directly, MMB also licensed its pesticide-producing gene to a number of local producers at a cost. Thus, MMB reportedly controls 90% of the cotton seed market. MMB stated that it intends to cooperate fully with the investigation and is confident that the allegations will be dismissed. European and US stakeholders publicly oppose Bayer-Monsanto deal St. Louis Business Journal (St. Louis, MO) - 24 July 2017 Online campaigns group Avaaz called on European Union's antitrust regulator to block Bayer's proposed USD 66 billion takeover of Monsato, arguing that the merger would hurt innovation and competition, leading to increased consumer prices. Separately, The American Antitrust Institute, Food & Water Watch and National Farmers Union sent a joint letter to the US Department of Justice, also urging the US regulators to block the deal on same reasons. Avaaz argued that more than one million people signed the petition opposing the merger. Avaaz lawyers argued that the companies would control more than one-fourth of the global market for seeds and pesticides. The European Commission's preliminary review of the deal would end on August 7, 2017. Bayer responded that the combination of the two companies would offer farmers better products. Legal action against high royalties Economic Times -15 October 2015 Nine out of 25 (36%) Indian hybrid seed producers, under the National Seed Association of India (NSAI), sought the intervention of the Agriculture Ministry to urge the Competition Commission of India (CCI) to take measures against Monsanto's dominant market position. They argue that Monsanto is using its dominant position to charge high royalties far above the limits prescribed by various state governments. The seed producers are seeking adequate compensation. Locations: France, Burkina Faso, India, United States Tags: Product Quality and Safety Impact OOOOOOOOOO Risk OOOOOOOOOO Indian regulator blames company for farmers' death Financial Express -17 October 2017 The chairman of Indian special task force Vasantrao Naik Sheti Swavlamban Mission (VNSSM), Kishor Tiwari, blamed agrochemical companies Monsanto, Bayer and Syngenta after around 36 farmers died due to pesticide exposure. Tiwari claimed that the companies violated the guidelines set up by the Indian government, the Central Insecticides Board and Registration Committee (CIBRC) and the United Nations Food and Agriculture Organisation (FAO) Code of Conduct on Pesticide Management, as they distributed hazardous pesticides without providing sufficient safety information. According to a survey conducted by the VNSSM, many farmers experienced side effects such as nausea, rashes and eye irritation due to uninformed or incorrect pesticide usage. SUSTAINALYTICS 12 | 37 EX P-3587 Page 12 of 37 SVEC OLDMONS0570272 Impact OOOOOOOOOO Risk OOOOOOOOOO o o Impact OOOOOOOOOO 0^ Risk OOOOOOOOOO 0 Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Company halts NemaStrike launch because of reports of rashes Reuters UK - 02 November 2017 Monsanto halted the launch of NemaStrike, a product designed to protect corn, soybeans and cotton from worms, following reports of rashes. The company disclosed that it conducted three years of testing in the US and that 400 people used the product as part of the trial. Brian Naber, the US commercial operations lead for Monsanto, stated that there have been cases of " skin irritation, including rashes, that appear to be associated with the handling and application of this seed treatment product." NemaStrike received all approvals from US environmental regulators. A company spokeswoman also highlighted that those who developed rashes may have failed to follow instructions to wear protective equipment. Update: Company allegedly warned about illegal GM cotton in 2008 Times of India (Electronic Edition) -19 October 2017 Monsanto reportedly sent a letter to the Indian Genetic Engineering Approval Committee (GEAC) in 2008 and warned about the illegal sale and cultivation of genetically modified (GM) cotton. Moreover, Monsanto allegedly informed the State Biotechnology Coordination Committee (SBCC) and asked the regulator to take legal action against the illegal activity. Nevertheless, the regulators purportedly failed to take any action at the time. Andhra Pradesh regulators recently launched an investigation in relation to the planting of Monsanto's unapproved GM cotton, after finding that farmers planted around 15% of the area with Monsanto's Bollgard II Roundup Ready Flex (RRF). Andhra Pradesh investigation into unapproved GM cotton Reuters UK - 06 October 2017 Indian regulators launched an investigation in relation to the planting of Monsanto's unapproved genetically modified (GM) cotton Bollgard II Roundup Ready Flex (RRF) in southern state Andhra Pradesh. Farmers in the area reportedly planted around 15% of the cotton area with RRF, nevertheless, it was not disclosed how farmers got access to the unapproved cotton. According to a Monsanto spokesperson, seed companies tried to increase their profits by illegally incorporating "unapproved herbicide-tolerant technology into their seeds". Monsanto withdrew its application for RRF approval in 2016, following a dispute with the Indian government regarding the royalties the company would be entitled to for licensing its technology to local companies. Company settles cotton dispute with Burkina Faso Sputnik - 09 March 2017 Monsanto agreed to settle a cotton dispute with Burkina Faso's cotton industry. The Inter-professional Cotton Association of Burkina (AICB), a union of Burkina Faso's three-largest cotton companies, previously filed a lawsuit against the company in 2016 and claimed that Monsanto's Bollgard II cotton strain reduced the quality of their cotton crop and the length of individual cotton fibers. AICB previously demanded 48 billion CFA francs (USD 76 million) in compensation and withheld USD 24 million in royalties. As part of the settlement, AICB will keep 75% of the royalties (USD 18 million), while Monsanto will receive 25% (USD 6 million). French farmer intoxicated with Lasso weedkiller Reuters -11 September 2015 A French court confirmed a 2012 ruling in which Monsanto was held accountable for the intoxication of a farmer who inhaled the company's Lasso weedkiller. The farmer claimed he suffered from neurological problems following the incident, and blamed Monsanto for failing to include proper warnings on the label. The court ordered the company to fully compensate the farmer. Lasso is an herbicide used since the 1960s, which was banned in France in 2007 and previously in Canada Belgium and Britain, due to links to a range of health problems. ^ ^ SUSTAINALYTICS 13 | 37 EX P-3587 Page 13 of 37 SVEC OLDMONS0570273 Marketing Practices Category 1 Low Locations: South Africa, St. Louis, MO, USA, California, USA Tags: False or Deceptive Marketing Impact OOOOOOOOOO Risk OOOOOOOOOO Withdrawal of GMO advert in South Africa allAfrica -19 March 2014 The Advertising Standards Authority (ASA) of South Africa ordered Monsanto to withdraw a radio advertisement as the company's claims regarding the benefits of GM crops were "unsubstantiated and misleading." According to ASA, the South African advertising law requires that claims are confirmed by independent and credible experts. Nevertheless, Monsanto was only able to provide the authority with links to company documents available on its website. Impact OOOOOOOOOO 0 Risk OOOOOOOOOO @ Update: Customer claims misleading marketing in Missouri lawsuit LegalNewsLine.com -13 April 2017 Joshua Rawa filed a class action lawsuit against Monsanto in a Missouri district court and accused the company of misleadingly marketing its roundup herbicide. According to the complaint, Monsanto advertised the product as capable of producing 21 gallons of herbicide after being diluted (79 liters). However, Rawa allegedly suffered monetary damages because he was only able to produce half the advertised amount. The plaintiff sought a jury trial, compensatory and punitive damages and for the company to conduct corrective advertising. Impact OOOOOOOOOO Risk OOOOOOOOOO Customer files false advertising lawsuit in California LegalNewsLine.com - 02 November 2016 Customer Elisabeth Martin filed a proposed class action lawsuit against Monsanto in a California district court and claimed that the company made false claims about its Roundup herbicide. According to the lawsuit, Monsanto advertises that its product can be diluted to make between 10 and 85 gallons (between 37 and 321 liters) of Roundup, depending on the size of the container. However, the plaintiff claimed that she suffered monetary damages from buying Roundup because the product can only be diluted to make half the advertised amount for each size of container. Martin sought a jury trial, an order for Monsanto to engage in corrective advertising, monetary damages and court fees. Society & Community Incidents Category 4 High Related Events Outlook Neutral Social Impact of Products . Community Relations . -o Weapons . Access to Basic Services None Sanctions None Society - Human Rights None Overall Controversy Level Based on our event level assessment of impact and risk as high, the company has been assigned an overall controversy assessment of category 4. . %1 SUSTAINALYTICS u 14 | 37 EX P-3587 Page 14 of 37 SVEC OLDMONS0570274 Social Impact of Products Locations: India, California, USA, Europe, Brussels, Belgium, United States, Belgium, Canada, Brussels, Belgium, Argentina, France, Switzerland, Sri Lanka, Colombia, Germany, Los Angeles, CA, USA, Missouri, St Louis, MO, USA, Brazilia, Brazil, Oregon, USA, Missouri, USA, St. Louis, MO, SUSTAINALYTICS Sustainalytics' outlook for this controversy is Neutral for the next 12 months, because: The reputational risk poses ongoing concerns, since Monsanto faces significant opposition in many countries from the civil society, NGOs, government officials, and part of the scientific community, generating negative headlines in the international media. Monsanto has yet to demonstrate that it has adopted a strong approach regarding product stewardship challenges, as outlined in its policies and commitments. If it fails to do so, it risks being confronted with increased levels of resistance and stands to lose access to important markets. The fact that some lawsuits are still ongoing, poses continued legal risk for the company. Should courts rule in the plaintiffs' favour, the controversy level could be downgraded to a Category 5. Furthermore, while the European Chemical Agency classified glyphosate as safe to use, in January 2017, a US judge ruled that glyphosate should be included in California's Proposition 65, a list of chemicals known to the public as carcinogenic. The US was the second biggest market for glyphosate after Asia-Pacific. This poses ongoing business risks for Monsanto. Assessment Monsanto is involved in several controversies related to the potential health hazards posed by its two main product categories: glyphosate herbicides and genetically-modified (GM) seeds, in October 2017, a majority of Members of the European Parliament (MEPs) voted for a full ban of glyphosate by 2022 for the potentially carcinogenic side effect. Additionally, European activists handed the European Commission a petition signed by around 1.3 million people who requested the ban on glyphosate. Already in March 2015, the WHO classified glyphosate, Roundup's active substance, as potentially carcinogenic. The WHO's decision lends weight to previous studies that have linked glyphosate and Roundup to birth defects, endocrine disruption, damage to DNA, reproductive and developmental toxicity, neurotoxicity, and cancer. Several countries and chain stores banned glyphosate products. Several countries either directly banned the company's products or the use of GMOs for human consumption. Additionally, Monsanto faces legacy lawsuits by ten entities, including several cities, related to pollution of waterways through its former production of Polychlorinated Biphenyls (PCBs). In September 2017, the European parliament also banned Monsanto lobbyists due to its failure to provide further evidence on safety studies. Monsanto produces 99% of all PCBs used in the US and, according to allegations, it disregarded known human health dangers and marketed PCBs as being safe until their ban in 1979. Sustainalytics assesses this controversy as Category 4, due to the potentially severe risks posed by the company's products on human health. Monsanto's practices stand out in terms of their severity, broad stakeholder impact and recurrent nature, indicating a structural inability to address related risks. The company's poor response and the societal backlash generated are exceptional within the industry, as are the reputational, regulatory, litigation and financial risks the company faces. The socio-environmental impact of Monsanto's product-related controversies is considered high, because: Scientific studies linked Roundup and GM Roundup resistant seeds to endocrine disruption, DNA damage, reproductive toxicity, neurotoxicity, and cancer in humans. Monsanto's products are banned in several countries due to health concerns. The US FDA found residues of glyphosate in honey and oatmeal products, including baby food. Similarly, the Canadian Food Inspection Agency previously reported that it found traces of glyphosate in around 30% of all the foods it tested, which increases the potential negative effect of the product on consumers. Genetic contamination is hard to contain due to cross-pollination and as such companies involved in genetic research are expected to demonstrate strong risk management. The impact on society of PCB contamination is severe. Scientific evidence established a link between PCB exposure and cancer in humans and evidence suggests the company was aware of the danger posed by PCBs, but chose to disregard it. Monsanto never recognized this connection, but admitted that all people have trace amounts of PCBs in their systems. The Missouri District Court of Appeals ruled that Monsanto can be held liable for PCB-related Non-Hodgkin's Lymphoma cases. While the nature events is not uncommon in the industry, the impact of Monsanto's products exceeds that of its peers. The company's reputational risk is high, because: 15 | 37 EX P-3587 Page 15 of 37 SVEC OLDMONS0570275 [q] a Business risks: Monsanto is the main producer of glyphosate, which increases risks of the company, if further states or shops ban the product. Monsanto derived 26% of its FY2016 net sales from its agricultural productivity segment, which includes herbicides, indicating the significance of the segment for the company. Legal risks: Monsanto faces several lawsuits related to the pollution with polychlorinated biphenyls (PCBs) and alleged health impact of glyphosate, increasing legal costs and the risk of liabilities. Reputational risks: Bans and protests related to GM products are not always directly targeted at Monsanto. However, glyphosate was invented and brought to the market by the company, who remains one of the main producers, therefore it can be held directly accountable. Moreover, international coverage of these events has been consistently high, including attention from prominent media sources. Criticism has ranged from moderate to severely critical. Moreover, product safety constitute a key ESG issue for the industry and is of great importance to stakeholders. As such, negative publicity regarding product safety is difficult to overcome, and the trust of regulators, consumers and society may take years to repair. Monsanto's management systems are considered weak, because: Monsanto has an adequate product stewardship programme, environmental and health and safety policies and programmes, and regulatory compliance programme. However, Monsanto has a poor historical track record in terms of company ethics, given previous allegations of disregarding scientific evidence in order to downplay the health risks posed by PCBs, as well as ongoing debates on glyphosate's carcinogenic effect. This undermines the credibility of the company's claims with respect to the safety of its products. Monsanto states that it takes a precautionary approach, committing to "use sound and innovative science and thoughtful and effective stewardship to deliver high-quality products that are beneficial to our customers and to the environment". However, there is little disclosure regarding the actual implementation of these aspirational goals. Moreover, although the company states that it engages in community dialogue worldwide, there is no evidence of a formal community engagement programme. Monsanto, by refusing to attend a hearing of the European parliament regarding the company's alleged interference with safety studies, does not show commitment to improve on the relative issue. Consequently, the MEPs have banned Monsanto lobbyists from the European parliament, showing the unwillingness to improve Social Impact of Products Incidents Incidents Timeline Highest of Impact or Risk o Main Incident Main Incident Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ [O] S SUSTAINALYTICS Update: Company and US farm groups file lawsuit to stop California warnings Reuters Africa -15 November 2017 According to media outlet Reuters, Monsanto and US farm groups filed a lawsuit against the state of California to prevent it from requiring cancer warnings on products containing glyphosate. California previously added glyphosate, the main ingredient in Monsanto's Roundup herbicide, to the list of cancer-causing chemicals in July 2017. Furthermore, the state will require companies to add warnings on products containing the herbicide starting with July 2018. Monsanto and the US farm groups, which represent corn, soy and wheat farmers, rejected the claim that glyphosate is "probably carcinogenic" and claimed that any warnings will cause sellers to spread false information. The lawsuit also named California's Office of Environmental Health Hazard Assessment (OEHHA) as a defendant. Update: EU fails to take decision on glyphosate license renewal Reuters UK - 09 November 2017 European Union countries failed to take a decision regarding the license extension for glyphosate, a herbicide used in Monsanto's Roundup product, after the European Commission proposed an extension for five years. The Commission declared that it would resubmit the proposal before the beginning of December 2017, as fourteen countries voted in favor, nine against and five abstained. France stated that it supported the renewal for three years only, while the European Parliament requested a phase out over the following nine years. NGO Greenpeace advocated for an immediate ban. The debate over glyphosate was triggered by several experts who claimed that the chemical was 16 | 37 EX P-3587 Page 16 of 37 SVEC OLDMONS0570276 Impact O O O O O O O O O O 0 Risk 0000000000(0) Impact OOOOOOOOOO 0 Risk OOOOOOOOOO @ |Q| Impact OOOOOOOOOO 0 Risk OOOOOOOOOO @ 0 Impact OOOOOOOOOO Risk OOOOOOOOOO @ 0 |Q| Impact OOOOOOOOOO 0 Risk OOOOOOOOOO @ linked to cancer. Nevertheless, expert opinion differs, and a recent study conducted on more than 50,000 people by the National Cancer Institute concluded that glyphosate does not cause cancer. Meanwhile, Monsanto was criticized for interfering with various scientific studies which linked glyphosate to cancer. Update: Green MEPs request prove into glyphosate licence renewal EUobserver - 26 October 2017 The Greens/EFA group of Members of the European Parliament (MEPs) requested an investigation into the decision-making behind the proposed licence renewal of glyphosate, a herbicide used in Monsanto's Roundup product. The company was previously accused of interfering with scientific studies which linked glyphosate to cancer. The group's co-chair, Ska Keller, stated that the EFA will collect signatures to establish an inquiry committee to investigate why certain studies on the matter have been ignored. Update: MEPs vote for glyphosate ban Deutsche Welle - 24 October 2017 A majority of Members of the European Parliament (MEPs) voted for the ban of glyphosate, a herbicide used in Monsanto's Roundup product. As per the proposed resolution, glyphosate usage would be phased out, as it would be initially banned for household use and later on for agricultural use. While the resolution voted by the MEPs is not binding, it nonetheless puts pressure on the European Commission, which previously recommended the herbicide's licence to be renewed for 10 years. European activists also voiced their opposition to the licence renewal, as they recently filed a petition signed by around 1.3 million persons who requested the glyphosate ban. Members from the 28 member states are yet to vote on the licence extension. Update: European activists request glyphosate ban France24 - 23 October 2017 European activists handed the European Commission a petition signed by around 1.3 million people who requested the ban on glyphosate, a herbicide used in Monsanto's Roundup product. The Commission, which previously proposed to extend the herbicide's approval for ten additional years, stated that the activists will be invited to present their opinions and that the European Parliament will organize public hearings. The activists also asked the EU to take only peer-reviewed research into consideration and to stop chemical companies from choosing the research laboratories which conduct the research. Experts from the 28 member states will vote on the Commission's proposal and France previously confirmed that it will vote against the licence extension due to concerns regarding the product's safety. Update: Monsanto lobbyists banned from the European Parliament The Independent - 29 September 2017 The European Parliament banned Monsanto lobbyists from attending parliamentary inquires and from meeting Members of the European Parliament (MEPs), after Monsanto refused to attend a hearing regarding the company's alleged interference with safety studies. This was the first case when MEPs decided to block a company's access due to its failure to respect the request for further evidence. The European food safety regulator was recently criticized after it was revealed that part of its analysis on Monsanto's RoundUp was directly copied from a Monsanto report. Update: France to vote against glyphosate licence renewal Reuters Africa - 31 August 2017 According to an environment ministry official, France will vote against renewing the licence of glyphosate, a herbicide used in Monsanto's Roundup product, in the European Union. The EU proposed the extension of the herbicide's approval by ten years after the European Chemical Agency (ECHA) concluded that glyphosate should not be classified as a substance that causes cancer. Nevertheless, France would vote against the licence extension due to concerns regarding the product's safety. SUSTAINALYTICS 17 | 37 EX P-3587 Page 17 of 37 SVEC OLDMONS0570277 Impact OOOOOOOOOO Risk OOOOOOOOOO @ o o Impact OOOOOOOOOO Risk OOOOOOOOOO @ |Q| P Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Update: Internal Monsanto documents further raise collusion concerns Russia Today - 01 August 2017 The law firm Baum Hedlund, Aristei & Goldman, which represents people alleging that Roundup caused blood cancer, publicly posted more than 700 pages of internal Monsanto documents suggesting that the company allegedly attempted to influence media reports and the scientific research around Roundup. Firstly, the documents described instances when academic researchers scrutinizing Monsanto products expressed discomfort with the research process led by Monsanto and described it as "ghostwriting". Secondly, the documents described instances when Monsanto scientists expressed concerns internally over the safety of Roundup. Monsanto said it was outraged by the documents' release by the law firm involved in the litigation and argued that it violated a confidentiality order. Update: EPA's Inspector General probes potential collusion E&E News PM-06 July 2017 According to media outlet Huffington Post, EPA's Inspector General is probing whether the agency staff colluded with Monsanto to bias research on giyphosate, the main component of the company's Roundup herbicide. The probe was allegedly triggered by a request made by California Rep. Ted Lieu and by media reports. Inspector General Arthur A. Elkins Jr. responded that he asked the EPA OIG Office of Investigations to conduct an inquiry into several agency review-related matters. The collusion claims were first brought by the plaintiffs in lawsuit concerning the toxicity of giyphosate and mentioned Jess Rowland, who was previously a manager in the EPA's pesticide division. Update: US FDA resumes giyphosate testing program Huffington Post - 07 June 2017 The US Food and Drug Administration (FDA) resumed testing meant to evaluate certain foods for giyphosate residues. The agency launched the testing program in 2016, but suspended it only after a few months because of hardships in identifying a standard methodology. Before the study was suspended, it found residues of giyphosate in honey and oatmeal products, including baby food. Similarly, the Canadian Food Inspection Agency previously reported that it found traces of giyphosate in around 30% of all the foods it tested. Update: EFSA dismisses giyphosate cancer study following counsel from EPA The Guardian - 24 May 2017 The European Food Safety Authority (EFSA) allegedly dismissed a study linking giyphosate (the key ingredient in Monsanto's Roundup herbicide) to cancer at the counsel of Jess Rowlands, a former US Environmental Protection Agency (EPA) officer who is accused of having ties with the Monsanto. Rowlands was named in more than 20 lawsuits against the company for allegedly trying to block a US government inquiry into the dangers of giyphosate. According to media outlet The Guardian, Rowlands participated in teleconference with EFSA as an observer in September 2015, before the agency adopted one of his arguments for dismissing the study. NGO Greenpeace demanded an inquiry into the connection between EFSA and Rowlands before giyphosate receives approval in Europe. Update: EU to renew giyphosate licence for another ten years Reuters Africa -18 May 2017 The European Commission will propose a ten year extension for the approval of giyphosate, a herbicide used in Monsanto's Roundup product. The European Union previously delayed extending the licence because of concerns related to the potential health risks posed by giyphosate. The decision was allegedly prompted by a new study conducted by the European Chemical Agency (ECHA), which concluded that giyphosate was safe and should not be classified as a substance causing cancer. However, the World Health Organization's cancer agency, the International Agency for Research on Cancer (IARC), continues to classify the substance as "probably carcinogenic". Update: Belgium bans giyphosate use for non-professionals GMVVatch.org - 01 May 2017 Belgium's federal minister of agriculture, Willy Borsus, announced that he wishes to ban the sale and use of herbicides by non-professionals, especially those based on giyphosate. The agricultural use of the substance will still be permitted in the country, however buffer zones between sprayed fields and neighboring properties will be mandates by law. Borsus also called for a new investigation into Monsanto's alleged attempts to influence experts in order to keep giyphosate on the market. SUSTAINALYTICS 18 | 37 EX P-3587 Page 18 of 37 SVEC OLDMONS0570278 Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO -> Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Update: Health Canada clears glyphosate usage AGCanada.com - 28 April 2017 Health Canada concluded that products containing glyphosate are "not a concern to human health and the environment." The decision was taken following a re-evaluation of the substance launched in 2009 as part of the federal practice for registered pesticides in Canada. However, the regulator proposed minor changed to the label of products containing glyphosate, including a warning that people should not enter freshly sprayed fields sooner than 12 hours following application. Another change is a warning that the products should be applied only in areas with little potential to spread to highly populated places. Health Canada also concluded that glyphosate is not genotoxic and is unlikely to pose a human cancer risk. Update: European parliamentarians request glyphosate investigation VietnamPlus - 23 April 2017 Eric Andrieu and Marc Tarabella, two parliamentarians from the Party of European Socialists, announced that they will request the EU Commission to investigate Monsanto. The request would be prompted by the release of internal company documents in a US lawsuit concerning the toxicity of glyphosate. US federal agencies previously released hundreds of Monsanto's internal emails which indicated that the company was aware of the toxic level of Roundup weed killer ( which has glyphosate as a main ingredient} since 1999. The two parliamentarians also wrote a letter to Jean Claude-Juncker, president of the EU Comission, and asked him not to renew the authorization of glyphosate in the European Union. Update: US Congressman calls for DOJ investigation into potential EPA collusion GMO Inside -17 March 2017 US Congressman Ted Lieu called for a Department of Justice (DOJ) investigation following media reports that a senior executive at the Environmental Protection Agency (EPA) may have leaked information to Monsanto and may have suppressed a glyphosate review conducted by the US Department of Health and Human Services. Lieu also advised consumers to immediately stop using Roundup (which has glyphosate as a main ingredient), because the substance was linked to non-Hodgkin's lymphoma by the International Agency for Research on Cancer. The Organic Consumers Association (OCA) also called on the members of Congress to launch an investigation into whether EPA officials conspired with Monsanto in order to hide legitimate scientific evidence that linked Roundup to cancer. Update: European Chemical Agency says glyphosate is safe to use The Guardian -15 March 2017 The European Chemical Agency (Echa) decided that the glyphosate in Monsanto's Roundup weedkiller was safe to use. EU countries asked Echa to assess the chemical's toxicity after failed negotiations to agree on a reauthorization for the herbicide. The chemicals' warning of causing eye damage and being toxic to aquatic life remains in place. Greenpeace previously accused Echa of conflicts of interest, claiming that several members from the study had links to chemical companies. Echa's opinion will go through an internal check before being submitted to the European Commission, which will reach a final decision by the end of 2017. Update: Plaintiffs claim company colluded with EPA in California court Huffington Post -15 February 2017 Plaintiffs who claimed that Monsanto's roundup herbicide caused cancer accused the US Environmental Protection Agency (EPA) of colluding with the company. According to a new court filing submitted in a Northern California court, the agency allegedly protected Monsanto's interests and unfairly helped the agrichemical industry. The plaintiffs submitted correspondence files from EPA scientist Marion Copley, who accused EPA official Jess Rowland of favoring pesticide manufacturers. Rowland allegedly oversaw the EPA's cancer assessment for glyphosate, the key ingredient in Roundup and other weed-killing products, and authored a scientific report which concluded that glyphosate was not likely to be carcinogenic. However, in the correspondence files, Copley cited evidence from animal studies which showed a clear link between glyphosate and cancer. The plaintiffs denied to mention how they came upon the correspondence. SUSTAINALYTICS 19 | 37 EX P-3587 Page 19 of 37 SVEC OLDMONS0570279 Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ 0 0 Impact OOOOOOOOOO Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO P 0 Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Update: California to list glyphosate on official list for carcinogenic substances Chemical Watch - 30 January 2017 A US judge ruled that glyphosate should be included in California's Proposition 65, a list of chemicals known to the public as carcinogenic. Monsanto had previously filed a lawsuit against California's Office of Environmental Health Hazard Assessment (OEHHA), arguing that the US Environmental Protection Agency (EPA) and the European Food Safety Agency along with other state pesticide regulators concluded that glyphosate was not carcinogenic. In September 2015, OEHHA issued plans to list glyphosate as a potential carcinogenic substance under the California's Safe Drinking Water and Toxic Enforcement Act, commonly known as Proposition 65. Update: Litigants want the publication of EPA's findings on glyphosate Organic Consumers Association -18 January 2017 Around 50 people filed a lawsuit against Monsanto claiming that they developed non-Hodgkin (NHL) after being exposed to Monsanto's Roundup herbicide. The plaintiffs wanted the court to lift a seal on documents detailing Monsanto's interactions with the US Environmental Protection Agency (EPA) in relation to EPA's safety assessment of glyphosate (Roundup's active substance). The plaintiffs claimed that both Monsanto and the EPA were opposed to the publication of EPA's findings on glyphosate. In March 2015, The World Health Organization's International Agency for Research on Cancer (IARC) found that glyphosate was a potential human carcinogen. However, in October 2015, the EPA concluded that glyphosate was not likely to be carcinogenic to humans. Update: FDA finds high residues of glyphosate in honey Huffington Post - 02 November 2016 The US Food and Drug Administration (FDA) reportedly found high levels of glyphosate residue in honey from the farm state of Iowa. The agency previously began testing for the potential human carcinogen, spread through Monsanto's Roundup herbicide, in March 2016. The testing marks the first time the FDA searched for glyphosate, despite the fact that the agency routinely tests food for other pesticides. FDA chemist Narong Chamkasem and John Vargo, a chemist at the University of Iowa, detected residues of glyphosate as high as 653 parts per billion, ten times the limit allowed by the European Union. According to the FDA, any amount could be considered a violation because there is no legal tolerance level for glyphosate in honey in the United States. Update: European Commission proposes glyphosate extension St. Louis Public Radio - 28 June 2016 The European Commission proposed a 12 to 18 months' extension of the authorization for glyphosate, in order to give the European Chemicals Agency time to conduct a health assessment of the chemical. The proposal follows a failed vote by member state on whether to extend the license, which had also been postponed twice beforehand. Glyphosate's authorization was set to expire on 30 June 2016. Update: EU postpones vote on glyphosate renewal again Deutsche Welle -19 May 2016 The European Commission postponed for a second time the vote on whether to renew the license for glyphosate, the key ingredient in Monsanto's Roundup weed killer, due to conflicting scientific studies on its carcinogenic properties. France was opposed to the re-authorization and Germany said that it would abstain from the vote due to internal disagreements between parties. The European Glyphosate Task Force, which includes Monsanto, stated that it considered the situation "discriminatory, disproportionate and wholly unjustified". The sales license for glyphosate is due to run out on 30 June 2016. The new license would have been granted for another nine years. Update: Nebraska farmers file lawsuit against company alleging Roundup caused their ca Wisconsin Ag Connection -17 May 2016 Three farmers and an agronomist from Nebraska filed a lawsuit against Monsanto, alleging that the company purposely misled the public regarding the safety of glyphosate, the active ingredient in its Roundup weed killer. The suit also claimed that Monsanto concealed or systematically sought to discredit all research that revealed the chemical's carcinogenic properties. All four plaintiffs had been diagnosed with non-Hodgkin's lymphoma, which they believed was caused by exposure to glyphosate. The plaintiffs were seeking unspecified damages. The company did not comment on the lawsuit. SUSTAINALYTICS 20 | 37 EX P-3587 Page 20 of 37 SVEC OLDMONS0570280 Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO o o Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Update: WHO study finds glyphosate unlikely to cause cancer through diet Deutsche Welle -17 May 2016 The UN's joint meeting on pesticides residues (JMPR) gave glyphosate, the active ingredient in Monsanto's Roundup weed killer brand, a clean bill of health. The decision followed a co-analysis by the UN's Food and Agriculture Organisation {FAO) and World Health Organisation (WHO) that determined that glyphosate was "unlikely to pose a carcinogenic risk to humans from exposure through the diet". The analysis reportedly analyzed quantities ingested strictly through diet, as opposed to a previous WHO study that found that glyphosate was a potential carcinogen by assessing high levels of exposure. EU member states were expected to vote on whether to re-license the chemical on 19 May 2016. Update: EU commission postpones vote on glyphosate license renewal Bloomberg - 08 March 2016 The European commission postponed the vote on whether to renew the license for glyphosate for the following 15 years. The decision came after France, Sweden, Italy and the Netherlands opposed the extension due to the World Health Organization's International Agency for Research on Cancer's classification of the chemical as a potential carcinogen, which Monsanto contested in court in the US. The commission would reportedly continue the discussion in another session on 18-19 May 2016 or earlier. Update: FDA to test glyphosate levels in foods Medlndia - 03 March 2016 The US Food and Drug Administration (FDA) stated that in 2016 it would begin testing for glyphosate residue in foods sold in the US. Soybeans, corn, milk, and eggs were reportedly among the foods that would be tested. The FDA's decision followed the United Nations' International Agency for Research on Cancer's labeling of glyphosate as a potential carcinogen and the development of new, more streamlined methods to test for the chemical. A Monsanto representative declared that the company is confident in the safety of its product. Update: Lawsuit against the state of California Western Farm Press - 21 January 2016 Monsanto filed a lawsuit against the California Office of Environmental Health Hazard Assessment and the agency's acting director, Lauren Zeise, seeking to prevent the listing of glyphosate, the main ingredient in its Roundup herbicide, as a known carcinogen. The regulator had planned to add the substance to the list following the World Health Organization's International Agency for Research on Cancer's classification of glyphosate as a probable human carcinogen. Monsanto disputed the agency's findings and its authority, argued that the listing and subsequent mandatory product labeling would violate its right to procedural due process and its First Amendment rights under California and US law. Update: EFSA and IARC to meet for clarification of discrepancies Reuters Africa -19 January 2016 EFSA Executive Director Bernhard Url responded to an open letter that urged the European Commission to disregard EFSA's findings regarding the safety of glyphosate. Url stated that he disagreed with the allegations of the authority's lack of openness and objectivity and that representatives of EFSA and IARC would meet in early 2016 to discuss the differences between the two organisations' findings. The meeting was said to take place in Brussels in mid-February. Update: EFSA and IARC classification debated in EU parliament 4 Traders -12 December 2015 On 1 December 2015, the European Parliament held a debate over the disagreement between the European Food Standards Agency (EFSA) and the World Health Organization (WHO) regarding glyphosate's carcinogenicity. Before the plenary session, 96 scientists from 25 countries had criticized EFSA's classification as "probably not carcinogenic" in an open letter addressed to the EU Health Commissioner. SUSTAINALYTICS 21 | 37 EX P-3587 Page 21 of 37 SVEC OLDMONS0570281 Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO -> Risk OOOOOOOOOO @ Q Q Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Update: EFSA found glyphosate unlikely to cause cancer in humans Reuters -12 November 2015 The European Food Safety Authority (EFSA), in collaboration with experts from EIJ countries, found that glyphosate is unlikely to cause cancer in humans, and proposed that a higher level of consumption should be deemed safe for humans. According to EFSA, the assessed evidence does not support lARC's classification of glyphosate as a potential carcinogenic. EFSA said that its assessment used more evidence and studies regarding glyphosate whereas IARC assessed groups of related chemicals. EFSA's glyphosate assessment will be one of the assessments used by the European Commission in its decision whether to renew existing approval for glyphosate use in the EIJ. Update: Glyphosate found in sterile and personal hygiene products Russia Today - 23 October 2015 A new study released by researchers from the Socio-Environmental Interaction Space (EMISA) of the University of La Plata in Argentina, found traces of glyphosate in 85% of the sterilized tampons, cotton and sanitary products tested. As such, concerns were raised regarding the safety of sterile and personal hygiene products, which are contaminated with a potentially carcinogenic substance. The main purpose of the research was to determine the chemical spread of glyphosate when aircraft-sprayed on a vast cropland areas. Update: AAP ends its partnership with Monsanto Huffington Post -19 October 2015 The American Academy of Pediatrics (AAP) decided to cease its corporate partnership with Monsanto by the end of 2015. The AAP whose mission is to work towards attaining the well-being of young people, reached its decision after Monsanto was criticized over the potentially severe health impacts posed by its glyphosate-based products. Update: Glyphosate to be listed as a carcinogen in California chemistry world -11 September 2015 The Californian Office of Environment Health Hazard Assessment (OEHHA) initiated a notice of intent to list glyphosate as carcinogen. California is the first US state which announced it will label and list glyphosate as carcinogen under the Safe Drinking Water and Toxic Enforcement Act of 1986 (Proposition 65). The Proposition demands that chemicals found to cause cancer, birth defects and other reproductive problems be listed as such. Update: France bans the sale of glyphosate from garden centers The Independent -15 June 2015 Due to the classification of glyphosphate, an ingredient in Monsanto's Roundup, as "probably carcinogenic to humans" by the UN's International Agency for Research on Cancer (IARC), the French Ecology Minister asked garden centers to stop selling Roundup from self-service aisles. Update: Coop and Migros chains stopped selling glyphosate products Fresh Plaza - 04 June 2015 Swiss biggest supermarket chains, Coop and Migros, will stop selling products that contain glyphosate. Their decision followed German giant retailer REWE Group's decision. The retailers, who sell a dilluted, ready-to-use herbicide to hobby gardeners, stated that this is a preventive measure. Update: Sri Lanka bans glyphosate imports Examiner.com - 24 May 2015 Sri Lanka's president and government approved a ban on the import of glyphosate, due to alleged hazards to the environment and human health. The decision followed the recent World Health Organization announcement that glyphosate is potentially carcinogenic, and two scientific studies by local researchers which showed that high concentrations in drinking water and direct exposure to glyphosate through spraying, increased the risk of deadly chronic kidney disease (CKDu). In Sri Lanka, CKDu affects 400,000 people with an estimated death toll of around 20,000 per year. SUSTAINALYTICS 22 | 37 EX P-3587 Page 22 of 37 SVEC OLDMONS0570282 Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO Risk OOOOOOOOOO @ PI P Impact OOOOOOOOOO Risk OOOOOOOOOO P P Impact OOOOOOOOOO @ Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Update: Columbia to propose a ban of glyphosate use for coca fumigation Morningstar.com -12 May 2015 Columbia's Health Minister Alejandro Gaviria and the Prosecutor General stated that glyphosate, RoundUp's active ingredient, should no longer be used to fumigate illicit coca crops, because of its potential health risks for neighboring communities. Glyphosate is used in Colombia to destroy coca cultures in order to reduce narco-trafficking, but the International Agency for Research on Cancer jIARC) classified glyphosate as a potential cancerigen. The officials stated they would propose a ban of glyphosate in the next meeting of the National Council of Narcotics. Update: German stores ban glyphosate products PrisonPlanet -12 May 2015 More than 350 Toom Baumarkt DIY stores belonging to the REWE Group, one of the biggest in Germany, will no longer commercialize glyphosate-containing products as of 30 September 2015. Baumarkt stores began removing products that contain the endocrine disrupting herbicide in 2013. Update: Roundup lawsuit Global Research - 23 April 2015 Three individuals filed a class action lawsuit against Monsanto claiming injunction and false and misleading advertising of Roundup as safe for humans.The plaintiffs alleged that glyphosate, the active ingredient in Roundup, kills gut bacteria important for human and animal digestion, metabolism, and vital immune system functions. The class action is ongoing and seeks to include anyone as a plaintiff who purchased Roundup or Roundup-related products. Update: WHO classifies glyphosate as a potential carcinogen Forbes - 21 March 2015 The World Health Organization (WHO), via the International Agency for Research on Cancer (IARC), has classified glyphosate, the active substance in Roundup, as a potential carcinogenic. The analysis reveals limited evidence to support a link to non-Hodgkin's lymphoma and lung cancer in humans and a convincing evidence of cancer in laboratory animals. The decision is based on exposure studies, mostly agricultural in the US, Canada, and Sweden published since 2001. Previously, in 1985, US Environmental Protection Agency (EPA) classified glyphosate as a potential carcinogenic to humans, but changed this classification in 1991 to non-carcinogenic, Monsanto considers the WHO's decision as inconclusive, stating that it draws upon old data. Update: Genetic and cellular damage of soybean workers Asian Journal - 27 January 2015 A study published in the Mutation Research journal has identified the presence of glyphosate in the cells of 81 workers tested at a soybean plant in Brasil who were working in the fields where Monsanto herbicides were used. According to the study, the toxins compromise soil health, food security, damage workers' DNA and human body cells. Update: Feeding tube liquid tested for glyphosate Toronto Sun -16 January 2015 Moms Across America initiated a testing process and collected samples for the identification of glyphosate in the feeding tube liquid from hospitals. The samples contained GM corn syrup, soy, and sugar considered to be sprayed with glyphosate during the growing season and at harvest as a drying agent. The researchers of MIT Computer Science and Artificial Intelligence Laboratory found the substance in amounts of up to 1100 times higher than normal and have deemed the liquid from feeding tube not safe. Update: Criticism related to herbicide Roundup Toronto Sun - 02 January 2015 The Monsanto herbicide Roundup was criticised in the Brazilian Journal of Microbiology. According to the study, the herbicide may contribute to the enhanced growth of the pathologic bacteria Pseudomonas Aeruginosa in the environment. The bacteria can cause dangerous infections and is resistant to antibiotics. SUSTAINALYTICS 23 | 37 EX P-3587 Page 23 of 37 SVEC OLDMONS0570283 Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO Risk OOOOOOOOOO @ |Q| |Q Impact OOOOOOOOOO - Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO Impact OOOOOOOOOO @ Risk OOOOOOOOOO Update: Genetically modified soy in infant formula Human Rights Watch - 2.3 October 2014 Testing coordinated between the U.S. Centre for Food Safety and the U.S. Environmental Protection Agency (ERA) scientists confirmed the presence of soy that had been genetically modified (GM) by Monsanto to survive high levels of chemical pesticide exposure, in infant formula sold in Oregon. The findings raised concerns about the exposure of infants to controversial chemical pesticides. Advocates for GM labeling cited the finding as rationale for labeling GMO products, which the company has fought against. Update: Roundup banned from sale to individuals in the Netherlands Sum of Us -16 October 2014 Following a decision by the Dutch Parliament, the sale of giyphosate-based herbicides to individuals was prohibited. The company's product, Roundup, is one such pesticide affected by the ban The prohibition was only in effect for non-agricultural use of the product, and as the ban was only on the selling of the product, its use is still allowed under EU regulations. Glyphosate has been linked to cancer, infertility, birth defects, nervous system damage, and kidney disease, as well as soil and water pollution. Update: Roundup linked to cancer Truth Out - 06 October 2014 An article highlighted numerous studies linking glyphosate, the main ingredient in Roundup, to increased incidents of cancer in areas where the herbicide is heavily sprayed. Studies were conducted in countries such as the US, Canada, Argentina, Australia and New Zealand, as well as places in Europe, and linked the herbicide to many types of cancer, including lung, breast, prostate, and brain cancer. Several studies also demonstrated that the herbicide may cause damage to human DNA. Update: Roundup 125 times more toxic than glyphosate Global Research And Data Services Industry -11 July 2014 A new study published in the journal Biomedical Research International revealed that agrochemicals, such as Monsanto's Roundup herbicide, are more toxic than regulators had previously revealed. The study claimed that initial tests tended to analyze isolated ingredients, such as glyphosate, and issued a toxicity assessment based on these individual tests. However, according to the report, if the Roundup herbicide is analyzed in their totality, its toxicity level may be 125 times higher than that of its active ingredient (i.e., glyphosate). Update: Seralini's paper republished Forbes - 25 June 2014 Environmental Sciences Europe agreed to republish the paper of French scientist Seralini and his colleagues claiming that Roundup resistant GMO crops gave lab rats cancer in a long-term feeding experiment. Furthermore, Seralini has won two court victories defending his work. The paper was retracted in November from FCT Journal do to inconclusiveness. Update: Glyphosate found in breast milk Greenpeace Canada - 27 May 2014 Two environmentalist groups, Moms Across America and Sustainable Pulse, conducted a pilot study according to which high levels of glyphosate herbicide were found in breast milk. The study further states glyphosate bio-accumulates in the human body, a finding so far refuted by regulatory authorities and biotech companies. The environmentalist groups are demanding a ban on the use of glyphosate in food crops. Update: Study links Roundup to Celiac disease BILD (DE) -01 April 2014 The Journal of Interdisciplinary Toxicology study linked Monsanto's Roundup herbicide to Celiac disease in humans. The study shows that approximately 5% from the population in North America and Western Europe suffers from the disease and postulated that fish exposed to glyphosate develop digestive problems that are similar to Celiac disease. Symptoms include diarrhea, skin rashes, depression, macrocytic anemia and nausea. SUSTAINALYTICS 24 | 37 EX P-3587 Page 24 of 37 SVEC OLDMONS0570284 Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO [ol IOI Impact OOOOOOOOOO Risk OOOOOOOOOO Update: Roundup found in 75% test samples Greenpeace Canada -10 March 2014 The US Geological Survey revealed in a recent study called "Pesticides in Mississippi air and rain: A comparison between 19S5 and 2007" that in 2007, Monsanto's Roundup herbicide was the most commonly found chemical, being present in 75% of air and rain test samples. Previous research has linked diseases such as Parkinson or cancer with the Roundup herbicide. Moreover, in an Argentinian region, where the herbicide is regularly used, 80% of children struggle with a variety of health problems. Update: Research links Roundup to kidney disease Charleston Gazette - 27 February 2014 A report by the International Journal of Environmental Research and Public Health linked Monsanto's Roundup herbicide to chronic kidney diseases in humans. The report postulated that glyphosate, the active ingredient found in Roundup can become toxic when mixed with nephrotoxic metals and "hard water". This type of water exists either naturally in the soil or can be artificially created through fertilizer usage, and contains elements such as calcium, magnesium, strontium and iron. Update: Seraiini study dismissed Forbes - 30 November 2013 The editor of The Food and Chemical Toxicology, required French scientist Seraiini to withdraw his paper claiming that Roundup resistant GMO crops gave lab rats cancer. The request specifies that the article will be removed. Seraiini threatened to sue the journal and demand "financial compensation for the huge damage" to the CRIIGEN research group. Update: Roundup Studies and GM Bans Bloomberg - 25 September 2013 As of September 2013, Russia was considering a total ban on GM imports. The Russian government had temporarily suspended importing GM corn as a result of the latest GM studies on Roundup ready seeds toxicity on human health and environment. Previously, in November 2012, the government of Kenya banned all GM crops. Update: Seraiini Roundup Experiment Earth Open Source - 01 November 2012 A study led by Gilles-Eric Seraiini, a French scientist, claimed that Monsanto's RoundUp-tolerant NK603 genetically modified maize, affect the liver and kidney functions. The research was conducted on rats, who were fed GM seeds as well as glyphosate. The study advocates for longer and more elaborate toxicology tests; however, Monsanto, the biggest producer of GM seeds, claims its products are safe and have undergone extensive testing. The results of the study were criticized by parts of the scientific community as they were reportedly based on insufficient data. Concerns over Roundup and glyphosate toxicity Environmental Sciences - 01 June 2011 According to a report co-authored by several scientists and published by Earth Open Source, glyphosate, commercialized by Monsanto under the name Roundup, can cause birth defects as well as "endocrine disruption, damage to DNA, reproductive and developmental toxicity, neurotoxicity, and cancer" at amounts equivalent to residues found on produce. Glyphosate is widely used herbicide. The report concludes that the new generation of babies born near fields of Roundup Ready (RR) soy in Argentina suffer from an increased rate of birth defects. Update: EU court rules in favor of Italian farmer who cultivated GM corn AgroPages.com -14 September 2017 The European Union Court of Justice ruled in favor of an Italian farmer who planted genetically modified (GM) corn developed by Monsanto, in spite of the country's laws that ban cultivating GM crops. Nevertheless, the EU court concluded that Italy could not prohibit GM crops, as it did not have any scientific basis to prove that they are harmful. In 2013, Italy requested the European Commission to prohibit GM seeds based on studies conducted in the country, but the Commission discredited the studies. However, Italy filed in 2016 a request to the European Commission to be excluded from the list of countries that cultivate and import genetically modified seeds in the EU. SUSTAINALYTICS 25 | 37 EX P-3587 Page 25 of 37 SVEC OLDMONS0570285 Impact OOOOOOOOOO Risk OOOOOOOOOO O Q Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Update: EU Parliament opposes import of herbicide-resistant soybeans Greenpeace EU - 03 February 2016 The European parliament voted against the import of GM soybeans MON 87705xMON 89788 and MON 87708xMON89788, developed by Monsanto, and and FG72, developed by Bayer CropScience. Parliament members stated that the authorization would not be consistent with EU law, as only 13 out of 28 Member States voted in favour of allowing the import of the soybeans into the EU. The soybeans had been engineered to tolerate glyphosate, the pesticide that raised concerns when the World Health Organization classified it as a potential carcinogen. The Parliament's vote is not binding for the Commission, as the final decision regarding the seeds' authorization has not been taken. Update: More countries opt out of EU deal for GMOs Russia Today - 05 October 2015 As of October 2015, 19 EU states had filed requests to the European Commission to be excluded from the list of countries that cultivate and import genetically modified (GM) seeds in the European Union. The full opt-out was requested by Austria, Bulgaria, Croatia, Cyprus, Denmark, France, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, and Slovenia. Belgium and the UK required opt-out mechanisms on several of their territories, while Germany requested a partial opt-out. Update: France decides to opt out of EU-wide deal for GMOs Reuters -17 September 2015 France filed a request to the European Commission to be excluded from the list of countries that cultivate and import genetically modified (GM) seeds in the European Union. The EU legislation allows its member states to individually decide whether to allow the import of GM food and animal feed, Monsanto's MON810 maize is the only GM product authorized for cultivation and human consumption in the EU. Around 60 other GM products have been cleared for import, mainly for cattle feed. Update: Latvia and Greece decide to opt out of EU-wide deal for GMOs Latvian Television - 28 August 2015 Latvia and Greece requested to be excluded from Monsanto's application to grow genetically modified (GM) crop across the European Union (EU). Under the new EU opt-out law, individual members of the European Union have the possibility of deciding on their own whether to accept or decline the use of GM food and animal feed in their countries. Monsanto's MON810 maize is the only GM product authorized for cultivation and human consumption in the EU. Update: GM field trial blocked in India Motley Fool Discussion Boards -12 May 2015 Eight Indian states currently allow field trials of GM crops including transgenic tests, but more than 20 states and territories have rejected open trials of genetically modified seeds. Between March and July 2014, the Genetic Engineering Appraisal Committee (GEAC), part of India's environment ministry, granted permission for 80 field-trial applications, but the permission was blocked until the government develops proper regulatory and safety mechanism. Also, the Supreme Court Technical Expert Committee recommended an indefinite moratorium on the field trials of GM crops. GMO bans BLOOMBERG News - 07 May 2014 The French Parliament gave its final approval to a law that will prohibit the cultivation of any variety of genetically modified (GM) corn, due to alleged hazards to the environment and human health. The company's product MON 810, will not be cultivated and sold anymore in France. It is worth noting that the product is the only GM crop allowed for cultivation in the European Union. Update: Turkey GMO Ban Bloomberg First Word -13 December 2013 The Turkish Council of State has cancelled the import of two of Monsanto's GM corn varieties (MON810 and MON810x88017),because of scientific uncertainty, following a lawsuit filed by the "No to GMO Platform". Greenpeace Turkey has allegedly requested that, in light of this ruling, all GMOs approved for import be re-evaluated and their approval revoked. Previously, in April 2013, Turkey's Biosecurity Board banned a total of 26 GMOs. scientific uncertainty. ^ ^ SUSTAINALYTICS 26 | 37 EX P-3587 Page 26 of 37 SVEC OLDMONS0570286 Impact OOOOOOOOOO Risk OOOOOOOOOO a ioi Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO ) Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Update: Company allegedly sold PCBs eight years after learning risks The Guardian - 09 August 2017 According to media outlet The Guardian, Monsanto continued to sell PCBs for eight years after learning of the public health and environmental hazards posed by the chemicals. The Guardian made the statements after searching through 20,000 newly published internal memos, minuted meetings, letters and other documents. Bill Sherman, the assistant attorney general for the US state of Washington, stated that the files contained new evidence against the company. The state is currently engaged in a legal battle with Monsanto concerning the environmental side effects of PCBs. The company also faces lawsuits from Seattle, Spokane, Long Beach, Portland, San Diego, San Jose, Oakland and Berkeley. Update: Port of Portland files lawsuit over PCB contamination in Oregon court Law360 - 06 January 2017 The Port of Portland filed a lawsuit against Monsanto in an Oregon district court and claimed that Port properties were negatively impacted by the company's widespread PCB contamination. The Port, which is the 10th entity to sue the company, allegedly has evidence that Monsanto knowingly concealed information about the dangers and toxicity of PCBs while actively manufacturing them. PCBs were banned by the federal government in 1979, although they persist in the environment and may cause extensive health complications. According to the lawsuit, the Port invested millions of dollars in studying the legacy contamination and cleaning up the contaminants around the Willamette River and Portland Harbor. The complaint sought unspecified damages. Update: Washington state files lawsuit over PCB pollution Washington Post - 08 December 2016 Washington Attorney General Bob Ferguson announced that the State of Washington filed a lawsuit against Monsanto in King County Superior Court over the company's pollution with polychlorinated biphenyls (PCBs). The lawsuit, which sought damages and cleanup costs, claimed that the company knowingly produced PCBs for decades despite being aware of the toxic chemicals' harm to human health and the environment. The manufacture of PCBs was banned in 1979 through the Toxic Substances Control Act because the compounds were toxic to humans and wildlife and were classified by the US Environmental Protection Agency (EPA) as a probable human carcinogen. Monsanto was the only company to produce them between 1935 to 1979. The lawsuit claims that PCBs have been found in bays, rivers, streams, sediment, soil and air throughout Washington state and that they accumulate in the tissues of fish and other animals, including humans. Washington accused Monsanto of negligence and of engaging in efforts to hide the dangers of PCBs. Update: Judge dismisses California PCB lawsuits Reuters UK - 29 August 2016 A California federal judge dismissed lawsuit filed by the cities of San Jose, Oakland and Berkeley against Monsanto for allegedly polluting San Francisco bay and their waterways with PCBs. The judge said that the plaintiffs did not show that Monsanto's sale of the chemicals caused "a public nuisance that damaged their property rights". The cities had claimed that the company's PCB-contaminated stormwater flowed into the bay and polluted it. The court ruled that the cities were not the rightful owners of the water just because it flowed through municipal waterways and therefore they could not claim damages. Lawyers for the plaintiffs stated that an amended complaint would be filed. Scott Partridge, Monsanto's vice president of global strategy, deemed the decision "a victory for all organizations threatened by dangerous public nuisance lawsuits." Update: St. Louis jury rules that company must pay damages for PCB exposure St Louis Business Journal - 26 May 2016 Three plaintiffs were awarded USD 17.5 million in damages and USD 29 million in punitive damages in a jury trial which alleged that the PCBs manufactured and released by Monsanto and three other companies caused them non-Hodgkin lymphoma. According to the suit, the companies had been aware of the dangers of the PCBs for decades and misled the public regarding their safety. Monsanto stated that the evidence did not support the verdict and that it intended to immediately appeal it. The same plaintiffs' claims had been rejected by four previous juries. SUSTAINALYTICS 27 | 37 EX P-3587 Page 27 of 37 SVEC OLDMONS0570287 Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO ->! Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Update: Long Beach files federal lawsuit for waterway contamination Long Beach Post - 20 May 2016 The City of Long Beach filed a federal lawsuit against Monsanto for polluting its storm water, port waters, and other bodies of water with the chemical PCB. The city claimed that Monsanto continued to produce PCBs after it knew the chemicals were dangerous to human health and is seeking compensation for the cleanup of the Port of Long Beach, Colorado Lagoon and Dominguez Watershed. Long Beach is also seeking punitive damages, as well as litigation costs and attorney's fees, and pre-judgment and post-judgment interest. The company did not comment on the suit. Update: Lawsuit for PCB contamination of Portland city's waterway Herald and News -16 March 2016 The City of Portland filed the seventh lawsuit against Monsanto for manufacturing and polluting its water with the chemical PCB. The city claims that Monsanto continued to produce PCBs long after it knew the chemicals were dangerous to human health and is seeking compensation for the cleanup of the Willamette River and the Columbia Slough, which cost more than USD 1 billion. The company stated that it was not responsible for the clean-up, as it had been focused on agriculture for the previous ten years and it had divested the company that produced and, implicitly, would be liable for the PCBs. Update: Lawsuit for PCB contamination of Seattle city's waterway Oregon Public Broadcasting - 26 January 2016 The City of Seattle filed the sixth lawsuit against Monsanto for manufacturing and polluting its water with the chemical PCB. The city claims that Monsanto continued to produce PCBs long after it knew the chemicals were dangerous to human health and is seeking compensation for the cleanup of its Duwamish Waterway. The company claimed that the third parties that purchased the PCBs and used them in their manufacturing processes were liable for the clean-up. Update: Lawsuit for PCB contamination of Berkeley city's stormwater CNBC - 06 January 2016 The City of Berkeley has filed the fifth PCB-related lawsuit against Monsanto for contaminating the city's stormwater and the San Francisco Bay. The city intends to hold the company responsible for the cost of cleaning up the PCB contamination, while also seeking compensatory and punitive damages for the presence of the chemical in the stormwater and in the bay. Monsanto denied the city's claims, stating that the third parties which purchased the chemical and used it in their products were responsible for properly disposing of the resulting waste. Update: Oakland files lawsuit for alleged PCB pollution Reuters UK -11 November 2015 The city of Oakland filed a lawsuit against Monsanto, alleging that the company knew about the adverse health effects of PCBs before the US Environmental Protection Agency banned the chemicals in 1979. The plaintiff is seeking compensation for clean-up costs in the San Francisco Bay. Update: Lawsuit for PCB's clean-up costs Harford courant - 23 October 2015 The Hartford city and school board of Clark Elementary School from Hartford filed a federal suit against Monsanto, and its spin offs Solutia and Pharmacia, alleging disregard for the safety of consumers and users of PCBs and PCB-containing products. They require full costs of clean-up and relocation expenses. The lawsuit followed an environmental testing which found PCB levels up to 1,940 times higher than the federal limit. Overall, the state Department of Energy and Environmental Protection has identified more than 100 school buildings in Connecticut that have reported PCB issues, including Clark school. Most of them were built between 1950 and 1979 in constructions, before PCBs were banned for being toxic. Update: Lawsuit for polluting Spokane river Reuters - 04 August 2015 Spokane, Washington, city attorneys claimed that Monsanto, the lead producer of PCBs in the U.S. from 1930s-1970s, is responsible for the Spokane river contamination with carcinogenic PCBs. The lawsuit claimed unspecified compensatory damages and requested that Monsanto take responsibility for the clean up costs. The city's utilities spokesperson stated that the clean up cost will exceed USD 100 million. Monsanto denied any liability and stated that the third parties which incorporated PCBs into their products should bear responsibility for clean up costs. SUSTAINALYTICS 28 | 37 EX P-3587 Page 28 of 37 SVEC OLDMONS0570288 Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ o o Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO 0 Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO Risk OOOOOOOOOO O P Update: Lawsuit for polluting San Francisco Bay with RGBs CNBC-09 July 2015 San Jose authorities filed a lawsuit against Monsanto for contaminating the San Francisco Bay with carcinogenic PCBs, which the company incorporated into a variety of products from the 1930s to 1970s. Even though PCBs were banned 30 years ago, the State Water Resources Control Board determined that their presence in stormwaters still threatens water, fish, marine life in the bay and the well-being of people in the state of California. The lawsuit also charges Monsanto with concealing nformation that demonstrated the toxicity of PCBs so that the company could continue to profit by their use. Update: Lawsuit for water pollution with carcinogenic PCBs in San Diego Sott.net -17 March 2015 San Diego City alleged that Monsanto is one of the contributors to the pollution of the bay with carcinogenic Polychlorinated Biphenyls (PCBs), which were primarily manufactured by Monsanto. Previously, in 2012, the city and the port were found guilty of polluting the bay with PCBs by the Regional Water Control Board. Fines were imposed on the shipbuilders BAE and NASSCO that used it in the manufacturing process. Even though PCBs were banned 30 years ago, they are still found in bay sediments, water, fish, and other marine life in the bay. Update: PCBs and Non-Hodgkin's Lymphoma RIA Novosti - 24 July 2013 The Missouri District Court of Appeals rejected Monsanto's claim that it cannot be held liable for causing Non-Flodgkin's Lymphoma in people who had been exposed to polychlorinated biphenyls (PCBs). Plaintiffs Ruth Nishida, Alison Tucker and Nicholas White are the first from around 600-700 plaintiffs with allegations of high PCB levels and Non-Hodgkin's Lymphoma against Monsanto. PCB related liabilities The Boston Globe - 04 September 2012 Local schools in Lexington, Massachusetts, filed a lawsuit in federal court against Monsanto and its divisions Pharmacia and Solutia, alleging that the companies failed to communicate the health and environmental risks of polychlorinated biphenyls (PCBs), despite allegedly being aware of the dangers. Reportedly, PCBs were used in the construction of schools from the 1950s until the 1970s. Scientific studies have shown that people exposed to PCBs are significantly more likely to develop Non-Hodgkin's Lymphoma. Monsanto produced most of the PCBs used in the USD under the names Aroclor and Santotherm, until they were phased out In 1977. EPA banned PCBs in the USD since 1979, stating that they cause cancer in animals are probably carcinogenic in humans. Update: Company reaches agreement with EPA over dioxin contamination The Charleston Gazette - 02 August 2017 The US Environmental Protection Agency (EPA) disclosed that it reached an agreement with Monsanto concerning the dioxin contamination in the Kanawha River. The company agreed to construct a cap of over nine acres of sediment containing dioxin in order to keep the substance contained and to protect fish. The dioxin, a known carcinogen, is a waste byproduct released from Monsanto's former chemical plant in Nitro. Update: Petition for Writ of Certiorari Amazon Watch -12 February 2014 Some objectors to the class action settlement regarding Monsanto's Agent Orange herbicide lawsuit filed a petition to review the case with the US Supreme Court. Their primary argument is that the settlement did not provide benefits for up to 62% of the property remediation class or to 94% of the medical monitoring class. Agent Orange liabilities Reuters - 24 February 2012 Monsanto settled a long-running legal battle with residents of Nitro, West Virginia, who suffered health problems due to dioxin pollution, a by-product of Agent Orange production at Monsanto's plant in Nitro between 1949 and 1971. The company committed to USD 93 million in clean-up, remediation and medical monitoring to resolve the series of class action lawsuits. Furthermore, it plans to install a fund of USD 21 million for medical testing, with up to USD 63 million in additional funding available. Monsanto and Dow Chemical were the main producers of Agent Orange in the U.S. ^ ^ SUSTAINALYTICS 29 | 37 EX P-3587 Page 29 of 37 SVEC OLDMONS0570289 Impact OOOOOOOOOO @ Risk OOOOOOOOOO Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO0 Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO T Risk OOOOOOOOOO Update: Unapproved GM wheat found on Washington field Reuters Africa - 29 July 2016 US federal and state regulators opened an investigation after a Washington farmer discovered 22 unapproved genetically modified wheat plants developed by Monsanto on his field. According to a spokesman from the Washington State Department of Agriculture, the field had not been planted since 2015. The experimental grain, registered as MON 71700, was not traced to commercial supplies. The US Department of Agriculture was also testing the farmer's other wheat fields as a precaution. A Monsanto spokeswoman stated that the strain underwent field trials from 1998 to 2000, but was never commercialized. Update: Settlement with seven states ABC -18 March 2015 Monsanto agreed to settle for USD 350 million the contamination issue with farmers from seven states. The cost associated with the case and donations of USD 50.000 to agricultural schools and grant colleges in the seven states will also be supported by the company. The seven states are: Kansas, Missouri, Illinois, Oklahoma, Texas, Louisiana and Mississippi. Additionally, Monsanto stated that the lawsuit involving farmers in Arkansas is still active. Update: Settlement with Pacific Northwest farmers ABC News -18 November 2014 The company agreed to a USD 2.1 million settlement with farmers in Washington, Oregon, and Idaho who had sold who soft white wheat between May and November of 2013, after the company's unapproved genetically modified wheat had been discovered in Oregon. The discovery had prompted Japan and South Korea to temporarily suspend some wheat orders, and the EU had asked for stricter testing. The company was also to pay USD 250,000 to wheat growers associations. Update: Unapproved GM wheat found in Montana Bloomberg - 26 September 2014 Genetically modified (GM) wheat that had never been approved for commercial sale was discovered n Montana, approximately ten years after field tests of the crop had occurred there. Regulators stated that they did not know how the crops escaped the field tests. The company reported the discovery of the crop to the U.S. Department of Agriculture's (USDA) Animal and Plant Health inspection Service, and stated that it was cooperating fully with the investigation. The announcement came at the same time that the USDA closed the investigation regarding the GM wheat previously discovered in Oregon, stating that there was no evidence of the GM wheat in commerce. Update: GM-Wheat Contamination Lawsuit Reuters - 03 June 2013 From June until September 2013, wheat farmers sought class-action status from several U.S. states, including Washington, Idaho and Kansas, and sued Monsanto for alleged financial losses due to disruptions on the international wheat market, following the discovery of an unapproved strain of genetically modified wheat in an Oregon field, in May 2013. Monsanto is accused of failing to conduct due diligence to ensure the unapproved variety didn't contaminate regular wheat through cross-pollination or mixing of seeds. GM-Wheat Contamination Bloomberg - 29 May 2013 Monsanto came under fire due to the fact that a strain of genetically modified wheat, which was not approved for use by the U.S. Department of Agriculture (USDA), was found in an Oregon field. According to the deputy administrator of USDA's Animals and Plant Health Inspection Service, exposure was limited and posed no threat to human health. However, a senior scientist at the Consumers Union in New York expressed his concern. Japan and South Korea temporarily suspended U.S. imports of western-white wheat and feed wheat, Taiwan asked for wheat to be labelled by state of origin, while the E.U. recommended that member states test all imported U.S. wheat. Update: GM field trial still baned Motley Fool Discussion Boards - 09 November 2015 Monsanto's and Mahyco's request for field trial of herbicide-tolerant crops in India continues to be blocked until the government develops proper regulatory and safety mechanism. Given the farmer organisations opposing to the GM trial the last time field trials were held was in 2011-12. ^ ^ SUSTAINALYTICS 30 | 37 EX P-3587 Page 30 of 37 SVEC OLDMONS0570290 Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO Risk OOOOOOOOOO o Weapons DDT linked to breast cancer PAN NORTH AMERICA - 09 July 2015 The Endocrine Society published a study in the Journal of Clinical Endocrinology & Metabolism linking dichiorodiphenyitrichloroethane (DDT), a pesticide previously commercialized by Monsanto, to breast cancer risk. The researchers found that risk of breast cancer is four time higher for daughters whose mothers were exposed to high levels of DDT during pregnancy in the 1960s. Monsanto produced DDT in the US along with 14 other companies. DDT has been banned in the US since 1972 due to classification as an endocrine disrupter. The International Agency for Research on Cancer classified DDT as "possibly carcinogenic to humans" (Group 2B). Concerns regarding new herbicide mix of acetochlor and fomesafen Times of India - 28 May 2015 The EPA approved Monsanto's Warrant herbicide, a mix of acetochlor and fomesafen, although the European Food Safety Authority (EFSA) found acetochlor highly toxic to all aquatic organisms and the US Environmental Protection Agency (EPA) labelled fomesafen as a potential human carcinogen. The herbicide is to be used on soy and cotton for the eradication of giyphosate-resistant weeds, even if no safety testing were done on the mixture of the two herbicides. Update: Third global march against Monsanto ABC Online-24 May 2015 Millions of activists, from more than 40 countries, marched against Monsanto and its controversial GMO and crop protection products. The main request of the protesters was a ban on giyphosate, an ingredient which was recently classified as potentially carcinogenic to humans by the World Health Organisation. The first global march against Monsanto took place in 2013 and has since become an annual event. Global march against Monsanto Toronto Sun - 24 May 2014 Millions of activists, from 400 cities and 52 different countries, participated in a global march against Monsanto. The activists called for a permanent boycott of GMOs, claiming that the company's GMO products pose threats to human health. Category 2 Moderate B . Locations: Palestine Tags: Controversial Weapons Impact OOOOOOOOOO Risk OOOOOOOOOO v * Monsanto's white phosphorous linked to Gaza conflict Sputnik - 23 June 2015 An investigation carried out by the Current Events Inquiry blog revealed that Monsanto allegedly supplied the US government with white phosphorous used in the production of incendiary weapons. Reportedly, the activity had been going on for twenty years, with the company having full knowledge of the military use of its product. Weapons containing Monsanto produced white phosphorous were allegedly deployed during the 2008-2009 Gaza War, in which many civilians lost their lives. Although the Israeli government acknowledged that white phosphorous was used by the Israeli military during the conflict, there was no evidence linking the product to civilian victims. SUSTAINALYTICS 31 | 37 EX P-3587 Page 31 of 37 SVEC OLDMONS0570291 Community Relations Category 2 Moderate Locations: Malvinas Argentinas, Buenos Aires Province, Argentina, Poland, Woodland, CA, USA Tags: Conflicts with Local Communities Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO 0 Risk OOOOOOOOOO @ Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Update: Community continues protests La Nacion - 09 October 2014 Construction of the company's facility in Argentina had been halted since September 2013, and members of the surrounding community continued to protest the establishment of the facility. Reportedly, Monsanto threatened protesters with criminal punishments, and, along with the government and a construction union, at times violently attempted to stop the demonstrations. According to a representative of the protesters, up to 60 people have been injured in the conflicts. Update: Project halted in Argentina BosinessJournals -12 February 2014 Monsanto's USD 192 million project related to the construction of a corn seed production plant has been halted because the Argentinian local authorities dismissed Monsanto's environmental-impact assessment. The company accepted the rejection and stated that it will try to align the project to the new environmental requirements. Protests against Monsanto plant in Argentina Terraamerica -18 September 2013 Monsanto's plan to build its biggest seed factory in Malvinas Argentinas, a poor community of 15.000 people is facing protests that started in September 2013. The construction was halted in October 2013 through legal action by protesters and local residents. The locals are worried about respiratory problems or allergic reactions that are caused by the spraying of transgenic soy with weed-killer glyphosate, one of the company's products. Medical specialists noticed a rise in cases of cancer and birth defects. Police arrests protesters outside Monsanto plant in Woodland Davis Enterprise - 24 May 2017 Around ten people were arrested during a protest which took place outside Monsanto's plant in Woodland. According to the Yolo County Sheriffs Office, the protesters sat down in front of the plant's main driveway and blocked the route for employees. The protesters were arrested after the action was declared unlawful and they refused to move. The protest was allegedly part of the "March Against Monsanto 2017," which aims to comprise more than 400 anti-Monsanto/anti-GMO demonstrations in 47 states and 52 countries. The Woodland facility was previously targeted by those who oppose Monsanto's production of Roundup herbicide and GMOs. Polish farmers protest against GMO crops Global Research - 27 February 2015 Polish farmers held protests in over 50 locations across the country to bring attention to the dangers of GMOs and the alleged land grabs by Monsanto and other GM seed producers. The farmers' ultimate aim is to ban GMOs production in Poland, demanding that legislators protect smallholder farmers from exploitation by monopolizing companies. This is considered one of the largest organized farmers' protests in the country. SUSTAINALYTICS 32 | 37 EX P-3587 Page 32 of 37 SVEC OLDMONS057Q292 Governance Controversies Business Ethics Incidents Category 2 Moderate Related Events Business Ethics Intellectual Property Accounting and Taxation None Animal Welfare None Bribery and Corruption None Overall Controversy Level Based on our event level assessment of impact and risk as moderate, the company has been assigned an overall controversy assessment of category 2. Intellectual Property Category 2 Moderate ^, m Locations: Europe, St. Louis, Ml, USA Tags: Intellectual Property Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Business Ethics Category 2 Moderate * s* Tomato patent withdrawn by Monsanto Sustainable Pulse - 22 December 2014 Monsanto's patent for tomatoes resistant to botrytis, a fungal disease, was revoked by the European Patent Office (EPO) following a request for withdrawal by the company. Previously, in May 2014, the Nunhems and No Patents on Seeds! coalition complained that the tomatoes used for the new product development were taken from an international gene bank in Germany and are, therefore, not an invention of the company. Melon patent revoked by European Patent Office AgroPages.com - 25 January 2016 The European Patent Office revoked a melon patent held by Monsanto due to technical reasons. Allegedly, the company was claiming melons with a natural resistance to plant viruses were its own invention. It was also discovered that the patent was granted despite the fact that European law does not allow patents on plant varieties and processes for conventional breeding. The company's patent was strongly opposed by the Indian government and various NGOs from Germany and Switzerland. - M ^Locations: United States, Delhi, India Tags: Business Ethics - Other Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ ^ ^ SUSTAINALYTICS Update: Suspicions regarding the independence of pro-GMO scientists Bloomberg - 02 October 2015 The Genetic Literacy Project, a nonprofit group, was criticized after it was revealed that it received funding from Monsanto despite failing to publicly acknowledge this fact. E-mails obtained under the Freedom of Information Act revealed that five out of eight scientists contacted by Eric Sachs, Monsanto's Scientific Outreach Lead, ended up writing articles allegedly intended to influence GMO public policy. In addition, according to email messages obtained by the Boston Globe, Harvard professor Calestous Juma had undisclosed connections with Monsanto. Allegedly, one of Juma's 33 | 37 EX P-3587 Page 33 of 37 SVEC OLDMONS0570293 Impact OOOOOOOOOO Risk OOOOOOOOOO o Impact OOOOOOOOOO Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Governance Incidents papers was promoted with help from Monsanto's PR firm. Media also alleged that Monsanto suggested the summary and headline of a paper published by Juma. Corporate funds used to manipulate public opinion New York Times -12 September 2015 E-mail obtained by the US-based Right to Know NGO under the Freedom of Information Act (FOIA), revealed that Monsanto compensated allegedly independent collaborators for promoting GM seeds and biotechnologies. In 2014, Kevin Folta, the chairman of the horticultural sciences department at the University of Florida, received a USD 25,000 grant for his biotech outreach programme. While the money did not go towards his personal account, it did help fund his trips to various conferences and industry events. Previously, in 2013, David R. Shaw, the vice president for research and economic development at Mississippi State University was allegedly paid by Monsanto to intervene with the Department of Agriculture for the approval of GM soybean and cottonseed produced by Monsato. In 2011, Bruce M. Chassy, a professor at the University of Illinois also received funds to support "biotechnology outreach and education activities. According to the e-mails, Chassy lobbied with the EPA against the tightening of the regulation on pesticides. Delhi high court rules against company in licence breach lawsuit LiveMint - 29 March 2017 The Delhi high court rules against Monsanto Technology, a unit of Monsanto, in a breach of licence lawsuit with Nuziveedu Seeds. The court concluded that the company's termination of a 2015 sub licence agreement with the plaintiff was illegal and arbitrary. Following the decision, the agreement was reinstated. Flowever, the royalty for the use of Monsanto's patented Bt cotton technology was changed in order to respect government stipulations, because the court found that Monsanto failed to consider Nuziveedu's request to change the trait fee under the 2015 licence agreement. SEC settlement over accounting charges The Wall Street Journal -10 February 2016 Monsanto agreed to settle the Securities and Exchange Commission's (SEC) claims that it misstated its earnings by improperly disclosing the costs of a rebate program. The USD 80 million settlement resulted from a 2011 SEC investigation into Monsanto's customer incentive programmes related to its Roundup product from 2009 through 2011. The irregularities were corrected upon discovery. As part of the settlement, Monsanto agreed to hire a consultant to conduct a review of its disputed financial reporting. Three company executives paid individual fines ranging from USD 30,000 to 55,000. Moreover, Monsanto's CEO paid back to the company around USD 3 million in bonuses based on the overstated results despite no findings of misconduct on his part. Category 1 Low Related Events Corporate Governance Animal Welfare - SC None Bribery and Corruption - SC None Business Ethics - SC None Resilience None Overall Controversy Level Based on our event level assessment of impact and risk as low, the company has been assigned an overall controversy assessment of category 1. SUSTAINALYTICS 34 | 37 EX P-3587 Page 34 of 37 SVEC OLDMONS0570294 Corporate Governance Category 1 Low Locations: United States Tags: Shareholder Disputes/Rights Impact OOOOOOOOOO Risk OOOOOOOOOO Public Policy Incidents Shareholder lawsuit claims conflicts of interest in Bayer merger Bloomberg - 22 November 2016 A Monsanto investor filed a shareholder lawsuit against the company alleging that Monsanto's CEO Hugh Grant, as well as the company's board members, would improperly profit from the planned takeover by Bayer AG. The plaintiff claimed that Grant would collect USD 18 million in cash and benefits while other Monsanto directors would similarly benefit from the merger. Moreover, the investor contended that Hugh Grant and Monsanto's board directors were in conflicts of interest and they deliberately withheld information from shareholders in order to pursue the deal. Monsanto claimed the allegations were false. In October 2016, Monsanto accepted Bayer's USD 56 billion takeover offer. Category 1 Low Related Events Lobbying and Public Policy Overall Controversy Level o Based on our event level assessment of impact and risk as low, the company has been assigned an overall controversy assessment of category 1. Lobbying and Public Policy Category 1 Low Locations: United States, Washington, DC, USA, Vermont, USA Tags: Lobbying and Public Policy Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ o o Impact OOOOOOOOOO Risk OOOOOOOOOO @ Update: US court fines Grocery Manufacturers Association USD 18 million over disclosure Attorney General: Washington State - 01 March 2017 A Thurston County Superior Court ordered the Grocery Manufacturers Association (GMA) to pay USD 18 million in penalties and USD 1.1 million in litigation costs after a Washington Attorney General lawsuit revealed that GMA willfully violated Washington campaign finance laws in relation to the financing of anti-GMO food-labelling efforts in 2013. The US authorities found that GMA contributed USD 11 million to the campaign, but listed the money as coming from the GMA and not from the actual donors such as Monsanto. Update: Rally against DARK Act 4 Traders -18 October 2015 The Food Justice Coalition and March Against Monsanto NGOs announced a two-day event in Washington to raise awareness regarding the the Safe and Accurate Food Labeling Act, which blocked mandatory labeling of foods containing genetically engineered crops. The two NGOs stated that they expected hundreds of thousands of people to join the event, but no detailes about the exact numer of participants was available The Safe and Accurate Food Labeling Act is yet to be voted by the USE Senate. SUSTAINALYTICS 35 | 37 EX P-3587 Page 35 of 37 SVEC OLDMONS0570295 Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ a Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO @ Impact OOOOOOOOOO @ Risk OOOOOOOOOO Impact OOOOOOOOOO Risk OOOOOOOOOO Update: US states supporting GMO labelling Before It's News - 21 September 2015 In total eight US states (i.e. Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, New Hampshire, and Washington) have filed a court brief in the US Court of Appeals, in support of Vermont's GMO labeling law. Vermont's intent to put forth a GMO labeling bill is facing resistance from Monsanto and other interest groups, such as the Grocery Manufacturer's Association. Update: Divest Monsanto Now campaign Charleston Gazette -13 May 2014 Food Democracy Now, together with organic farmer coalitions and consumer groups have launched a one-day campaign, calling on investors to divest from Monsanto. The campaign follows after Monsanto and the Grocery Manufacturers Association expressed their intentions to stop the bill from being implemented by suing the state of Vermont. Update: Vermont approves GMO labeling law Toronto Sun - 25 April 2014 Despite Monsanto's and other companies' lobbying activities against the labelling of GMO food products, the state of Vermont passed a bill which requires mandatory food labels for GMO products. The bill is due to go into effect on 1 July 2014. Update: Protests at shareholders' meeting Charleston Gazette -11 February 2014 During Monsanto's shareholders' meeting that took place in January 2014, the company repealed a minority shareholder's resolution stating that is had no intention to change its position regarding the labelling of genetically modified seeds.The company was criticised for investing in lobbying activities backing an anti-labelling campaign in order to persuade Washington state voters to change their mind about the labelling of genetically modified food. Protests against the company escalated and the police arrested ten participants. Update: Coalition against GMO labelling Bloomberg Industry Research - 06 February 2014 29 seed and food companies, including Monsanto were criticised for forming the Coalition for Safe Affordable Food and lobby against the labelling of genetically modified food. The coalition urged the Congress to pass a bill obstructing future GMO-labelling initiatives. Companies opposing labelling initiatives argue that if successful, these could increase food costs and breed mistrust among consumers. Nevertheless, the industry Coalition for Safe Affordable Food has been criticised by various consumer groups for their anti-labelling stance. Update: Washington's Initiative 552 Medical Daily - 25 October 2013 DuPont, Monsanto and Dow, three of the biggest producers of bioengineered crop seeds, were criticised for investing USD 18.1 million in lobbying activities backing an anti-labelling campaign in order to persuade Washington state voters to change their mind about the labelling of genetically modified food. Washington joined 26 other states with proposals to mandate such labelling or to prohibit genetically engineered food. So far the proposals were rejected in all states. First hearing of pro-GMO bill in Congress OrganicConsumers -11 December 2014 About 600 people protested in front of the US Congress against bill H.R. 4432, which modifies the Federal Food Drug and Cosmetic Act by prohibiting US states from enacting GMO labeling laws.The protesters claimed that Monsanto and the Grocery Manufacturers Association were using unfair methods to prevent activists from participating in the democratic debate by, among others, paying students to come early and occupy the seats. SUSTAINALYTICS 36 | 37 EX P-3587 Page 36 of 37 SVEC OLDMONS0570296 Glossary of Terms Controversy An event or aggregation of events relating to an environmental, social and governance topic. Event A series of incidents which pertain to a common theme. An event assessment is based on the highest impact or risk score assigned to the related incidents, alongside a broader assessment of event trend and company preparedness and response. Category 5 - Severe (raw score of 0): Category 4 - High (raw score of 20): Category 3 - Significant (raw score of 50): Category 2 - Moderate (raw score of 80): Category 1 - Low (raw score of 99): The event has a severe impact on the environment and society, posing serious risks to the company. This category represents the most egregious corporate behavior. The event has a high impact on the environment and society, posing significant risks to the company. This category often reflects structural problems in the company. The event has a significant impact on the environment and society, posing moderate risks to the company. The event has a moderate impact on the environment and society, posing minimal risks to the company. The event has a low impact on the environment and society, posing negligible risks to the company. Incident Company operations and/or products and services that have a negative impact on the environment, society and external stakeholders. Outlook A forecast of how a controversy rating will change over the next 12 months. Negative Positive Neutral The event is likely to deteriorate within 12 months, leading to a downgraded rating of the corresponding indicator. The event is likely to improve within the next 12 months, leading to an upgraded rating of the corresponding indicator. The event is unlikely to change significantly within the next 12 months, and is not expected to undergo a change in rating of the corresponding indicator. Disclaimer Copyright 2917 Sustainalytics. All rights reserved. No part of this publication/report may be reproduced, used, disseminated, modified, published or otherwise furnished in any manner without the express written consent of Sustainalytics. Nothing contained in this publication/report shall be construed as to make a representation or warranty, express or implied, regarding the advisability to invest in or include companies in investable universes and/or portfolios. 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