Investor Presentaiton

DRA and ESG Client story - World Business Council for Sustainable Development "However, ESG-related risks can be difficult to identify, quantify and prioritize. It requires a deep understanding of the business operating environment and leadership that acknowledges and accepts the evolving external landscape. On a technical level, the process must move beyond traditional impact versus likelihood analysis to consider the interconnectivity and speed of onset of these risks." "Because of these challenges, the World Business Council for Sustainable Development (WBCSD) engaged KPMG, through its process known as Dynamic Risk Assessment." An enhanced assessment of risks impacting the Food & Agriculture sector An enhanced assessment of risks impacting the food and agriculture sector Share in S wbcsd Published: 22 Jan 2020 Type: Publication The current risk landscape for business has changed as all of the top five risks identified for likelihood were environmental according to the World Economic Forum Global Risk Report in 2020. In addition, the complexities and connectivity of environmental, social and governance (ESG)-related risks mean companies must assess risks not just individually, but as an interconnected and aggregated group. This report on the food and agriculture sector is intended to help companies more effectively assess their exposure to food system challenges and to integrate this knowledge into target setting and solution building. It presents analyses from the application of an enhanced risk assessment technique - KPMG's Dynamic Risk Assessment methodology - to the risk landscape represented by the perspectives of nine leading companies operating in the food and agricultural sector. This report dives into how a dynamic risk assessment can improve companies' risk practices and identify crucial aspects to continue creating long-term value. This report is a continuation of WBCSD's risk work and the guidance built in collaboration with COSO on Applying Enterprise Risk Management to Environmental, Social and Governance-related Risks. Download the report Figure 6: A network view of the risks identified including relative impact and connectivity Relative impact- Lack of accord on, industry goals Threshold for connection: 5% of maximumweight, or 1 agreement Number of respondents: 19 Biodiversity and genetic- concentration "It presents analyses from the application of an enhanced risk assessment technique - KPMG's Dynamic Risk Assessment methodology - to the risk landscape represented by the perspectives of nine leading companies operating in the food and agricultural sector. This report dives into how a dynamic risk assessment can improve companies' risk practices and identify crucial aspects to continue creating long-term value." KPMG Extreme weather events Ineffective industry governance Nitrogen inefficiency Disparate approaches adopted by producers, Land degradation research and scientists 250 Water Inefficient production practices Technology/biotechnology Aging farmers Understanding agricultural practices Geopolitics Regulation Expanded supply chain governance Macroeconomic Social media Food safety Low/Nill High Distribution channels Changing consumer trends https://www.wbcsd.org/Programs/Redefining-Value/Business-Decision-Making/Enterprise-Risk-Management/Resources/An-enhanced-assessment-of-risks-impacting-the-Food- Agriculture-sector © 2020 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 43

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