Natural Habitats Impact Report 2021-2022

Natural Habitats

Impact Report 2021/2022

34

Natural Habitats

Impact Report 2021/2022

35

Supporting associations When the first independent farmers joined our organic palm journey in 2011, we helped them form Ecuador’s first organic producer association. Since then, we have helped form 4 more associations. The 4 farmers associations were created based on the geographical location of the farms, with associations in Viche, Mompiche, Quinindé and Quevedo. The first Quevedo palm oil producer association will be officially inaugurated in 2022. All certified farmers are members, and with that, all 87 farms are represented in the associations. Additionally, we have promoted the creation of the Natural Habitats Employees Association, with 67 active members. Fair For Life Fund On top of the ingredient prices, several US and EU customers pay an additional Fair for Life premium. The premium paid goes into a special Fair for Life Fund for community projects. The farmers and workers organized in the 5 associations decide how the money will be used, and which social and environmental projects will be funded. We are responsible for managing the fund and proper use of resources, and help the associations to start, manage, and complete the projects. ▶ The sales of Fair for Life certified products began in 2014. Since then, money was transferred to the Fair For Life Fund. From 2014 to the end of 2021, the total accumulated amount of premium collected was $787,647.35.

Social projects As part of our commitment to diversity and inclusion, we’ve supported a number of social projects to help build stronger communities in the places we work. ▶ In 2011, we started a Soccer School Project, in which 200-250 children have been participating annually. Over time we set up 5 Soccer Schools in total. These are located in Chaupara Alto, San Juan, Bocana de Ostiones, Santa Elvira and Barrero. ▷ 212 children currently attend the schools, which provide social and physical activity for the community children. ▷ As going to school is a prerequisite for joining soccer training, this motivates both the children and their parents to attend school, instead of working the land. ▷ We also provide the children and schools with a teacher, team uniforms, shoes, soccer balls, and other equipment they need. ▷ In 2022, we will organize a local championship. The winners will be able to visit their favorite national team in Quito or Guayaquil, and spend a day training with the professionals.

We have also realized a number of other social projects such as Kids Days, Health Squads, and Christmas Celebrations. Adherence to standards Our certification standards ensure that proper procedures are in place to create a supportive and inclusive work environment. This includes making sure that contracts are signed before commencing work, fair prices and wages are paid, work schedules are adhered to, and housing and clean water are provided. As our certification standards require continuous improvement, an external consultant from BioAp performed an environmental & social impact assessment (ESIA) in 2021. One of the objectives of the ESIA is to identify the vulnerable communities in our production landscape, and the social support that they need.

▶ Use of the Fair For Life Development Fund started in 2016.

Medical care We provide medical care for our employees, farmers, and local communities to ensure the health and wellbeing of the people in our network.

Diverse farmer network We believe that bringing a wide variety of perspectives to the challenges we face harvests better solutions. That is why we operate a diverse and inclusive farmer network:

▶ We have 1 medical clinic in the mill for our employees.

▶ 43% of productive hectares are managed by smallholder farmers

▶ 2 medical doctors provide medical services for our employees, farmers and their workers, communities, and the football schools we set up.

FAIR FOR LIFE AND ASSOCIATIONS

▶ 47% of productive hectares are managed by medium sized farmers (between 75-500 hectares)

▶ Our medical services also include nutritional lectures and nutritional advice.

Under Fair For Life certification, farmers and workers are stimulated to organize themselves in associations and bargain collectively. We have actively supported the formation of 5 associations, and help manage the social projects that are financed through the Fair For Life Fund.

▶ 10% of productive hectares are managed by large farmers (>500 hectares)

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