Syngenta Annual Review 2015
Syngenta Annual Review 2015
Syngenta Annual Review 2015
2015
i Syngenta Annual Review 2015 Contents
26-35 36-45
The Good Growth Plan Operational
performance
37 People
38 Sustainable operations
42 Business integrity
44 Public debates
27 Make crops more efficient 31 Empower smallholders
28 Rescue more farmland 32 Help people stay safe
30 Help biodiversity flourish 34 Look after every worker
46-63 64-67
Performance data Corporate
46 Regional performance 63 Independent Assurance Report information
47 Product line performance on the Syngenta Non-financial 64 Board of Directors
Reporting
48 Financial information 65 Executive Committee
55 Non-financial information 66 Shareholder information
About the Syngenta Annual Report For further information, including the Form 20-F,
The full print edition of Syngentas Annual Report 2015 comprises: the Our Industry publication and a section with
answerstomany Questions about Syngenta,
the
Annual Review 2015, summarizing both financial visitourcorporatewebsite: www.syngenta.com
and non-fi ancial performance
Syngentas Annual Report also serves as our
the Financial Report 2015 annual Communication on Progress (COP) for
the
Corporate Governance Report and Compensation theUnitedNations Global Compact.
Report 2015.
You can find our online Annual Report 2015 on:
The Annual Review includes quantitative and qualitative www.ar2015.syngenta.com
information on strategies, policies and actions taken regarding
our business and corporate responsibility goals.
ii Syngenta Annual Review 2015 At a glance
G
roup performance
Our focus has been on improving profitability
while continuing to support our customers
in a volatile economic environment.
F
inancial performance
Group sales Crop Protection sales2 Earnings per share3 Research and
Development investment
Non-financial performance
1 Growth at constant exchange rates (CER) 5 2015 dividend is subject to shareholder approval at ead more about Financial information
R
2 Including sales of Crop Protection products the Annual General Meeting on April 26, 2016 on pages4854
toSeeds 6 2014 value was estimated and not assured
3 Fully diluted excluding restructuring and impairment 7 Per 200,000 hours, according to US OSHA definition Read more about Non-financial information
4 For a definition of cash flow return on investment, 8 Through sales on pages5562
see page 54
C
rop performance Crop sales $m1
Business highlights
Throughout 2015, we continued to strengthen our offer
through market-leading innovation and collaboration.
Here are some highlights from the year.
Breakthrough corn herbicide New high-performance fungicides R&D Days: unparalleled pipeline
Syngenta received US EPA approval for ORONDIS and SOLATENOL received We demonstrated that our R&D is the most
ACURON, providing a step change in USEPA approval, expanding Syngentas productive in the industry and set out a
technology to address herbicide resistance. market-leading fungicide portfolio. pipeline of unparalleled innovation across
Read more on page 17 Read more on pages11 and 15 chemistry, seeds and traits.
Read more on pages1013
Corn traits licensing agreement Syngenta and DSM partnership The Good Growth Plan
Our licensing collaboration with KWS and The companies will develop and jointly We made significant progress and, with
Limagrain is further affirmation of the value commercialize microbial-based agricultural theOpen Data Institute, published data to
of Syngentas innovative GM traits portfolio. solutions, including bio-controls, bio- enable the unlocking of environmental, social
Read more on page 16 pesticides and bio-stimulants. and economic value.
Read more on page 12 Read more on pages 2635
119
Research and Development sites 13
Production and Supply sites 12
Asia Pacific
Sales1 $m 1,837
Employees
Employees2 6,360
Research and Development sites
Production and Supply sites
25
23 28,704
1 Excluding Lawn and Garden
Latin Asia 2 Permanent full-time equivalent (FTE) as of September 30, 2015
America Pacic 3 Including headquarters (Switzerland)
4 Including six multi-functional production sites
Syngenta Annual Review 2015 01
overview
Strategic
We apply world-class science
andthe most productive research
and development in the industry
to achieve a step change
Development
Research and
in agricultural productivity.
In more than 90 countries
around the world, we enable
millions of farmers to improve
in focus
Crops
global food security by making
better, more sustainable use
of available resources.
Growth Plan
The Good
performance
Operational
data
Performance
information
Corporate
02 Syngenta Annual Review 2015
Chairmans statement
Extraordinary
2015 was a challenging year on a
numberof fronts, but one during which
Syngenta demonstrated its resilience,
circumstances,
outperformance and excellence. In
agricultural markets, crop prices remained
subdued and impacted the willingness
impressive resilience
ofgrowers toinvest in technology.
Nevertheless, preliminary data suggest
that the Company managed to gain
overview
Strategic
Our industry-leading Research and We also made significant progress In that context, I was very pleased
Development
Research and
Development productivity and innovation indeveloping a clear framework for toannounce on February 3, 2016,
pipeline was showcased at our R&D measuring and tracking the sustainability atransaction with ChemChina that
days,attended by more than 570investors, ofour own operations. These are Ifirmlybelieve is in the best interests of
customers, stakeholders and employees centered on five areas energy, water, shareholders and all other stakeholders
over three days in September. With unrivaled waste, suppliers and logistics and the inSyngenta, including our employees,
breadth and depth of technologies across majority of associated actions will be ourcustomers and our communities.
chemicals, seeds and biotech traits, completed by the end of 2016. It is a transaction for growth and long-
Syngenta is in a very strong position to term investment, and one which
TheGoodGrowthPlan and the Syngenta
drive future growth. Theongoing success recognizes the tremendous value of our
Foundation for Sustainable Agriculture,
in focus
Crops
of the new fungicide ELATUS inBrazil, Company our innovation, our broad and
which continued its excellent job in
the launch of the novel herbicide deep market presence andthe excellence
supporting smallholders across the world,
ACURON in the USA and the expansion of our people. Moreover, the governance
really place Syngenta at the forefront of
of our corn traits licensing evidenced structure agreed in the transaction reflects
sustainability in our industry and make,
bythe license agreement concluded with the high standards that have guided the
inmy opinion, a real difference.
KWS/Limagrain in October demonstrate Company since its inception in 2000
not just our innovation power, but also our In October, Chief Executive Officer Syngenta remains Syngenta, and will
ability tocreate significant value from MikeMack informed the Board of his continue its ambitious standalone strategy
thatinnovation. decision to step down from his role after supported by an ambitious owner. Even
Growth Plan
The Good
eight years. Mike led the Company with better, growers around the world will
Excellent progress was made during
passion and dynamism, developing an continue tohave achoice.
theyear with The Good Growth Plan.
innovative integrated strategy, driving
Each target within our six commitments I should like to thank my Board colleagues
significant growth in sales and creating
was achieved, and we remain on track to for their judgment and support during
anew relationship with society through
meetour 2020 goals. We also increased thisprocess, and for their guidance during
TheGoodGrowthPlan. On behalf of
the number of reference farms in our the year.
theBoard of Directors, I should like to
network to over 1,000 globally, giving
thank Mike for his immense contribution Finally, I should particularly like to thank
usextensive and rich data. We reinforced
to Syngenta. allthe employees of Syngenta for their
performance
Operational
our transparent approach by publishing
dedication, hard work and commitment to
these data in partnership with the Mike was succeeded by John Ramsay,
the Company. The volatility created by the
OpenData Institute, so that interested who has a long and distinguished track
markets and by the industry consolidation
stakeholders can analyze and work record of leadership in the Company.
discussions have not caused them to lose
withour results. John is currently acting in an ad interim
focus. On the contrary, they start 2016
capacity, while a full internal and external
In addition, 2015 was the first year in with the same determination and pride
search is conducted. The Company is
which we achieved audit level of inwhat Syngenta has to offer to farmers
insolid hands, which allows a disciplined
assurance for The Good Growth Plan. around the world. I am confident they will
process to take place to select our
This is unique in the industry and very deliver again, whatever the circumstances.
data
Performance
futureleader.
rare in any industrial sector and
demonstrates the rigorous nature of 2015 witnessed much speculation
TheGoodGrowthPlan and the real, aboutindustry consolidation, and a
quantifiable and tangible benefits that mergerwas announced towards the
itbrings to society and the environment. endof the year between two of our
Finally, we became the first agriculture US-based competitors. This was partly
company to receive accreditation by driven bychallenging market conditions Michel Demar
theFair Labor Association (FLA) for and diminishing returns on R&D, while Chairman
ourprogram in India. Building on this investors expect greater and faster
information
Corporate
toour objective
commodity prices can have on our
business. The evolution of commodity
prices is determined by multiple factors,
ofoutperformance
including notably the weather. However,
over the last two years, geopolitical
andeconomic events have also had
asignificant influence on our business.
I remain convinced that the emerging markets, which today Managing currency volatility
areexperiencing such turmoil, continue to represent the
The 2014 events in Russia and Ukraine
majorgrowth driver for our industry in the future. I am had continuing implications in 2015
equallyconvinced that Syngenta has the necessary skills because of the massive currency
andexperience, as well as the right portfolio, to succeed devaluations in those two countries.
inthesemarkets. Iampleased to say that we were
successful in offsetting these devaluations
John Ramsay through price increases. While higher
Chief Executive Officer
Ad interim prices had some impact onsales of
seeds, where local alternatives were
available, our crop protection business
was virtually unscathed. This shows the
importance of high-value chemistry to
customers in these countries and the
strength of our market positions.
In January 2015, the Swiss National Bank
removed the Swiss franc peg against
theEuro, resulting in a rapid appreciation
of the franc. With some 13 percent of
ourcosts in Swiss francs compared
withless than 1percent of our sales
we,like many other Swiss companies,
stood to be adversely affected by this
move. However, thanks to our well-
established hedging program we
wereable to minimize the impact.
Chief Executive Officers statement Syngenta Annual Review 2015 05
overview
Strategic
The next currency challenge was the Managing for profitability I took over as the CEO ad interim of
Development
Research and
rapiddevaluation of the Brazilian real, Syngenta at the end of October. One
I am conscious that in recent years our ofmy first moves has been to align the
which accelerated during the summer profitability has fallen short of our own
just as the planting season was getting organization behind clear goals which
andour shareholders expectations. I am arekey to our objective of outperformance.
underway. With growers confronted therefore pleased that in 2015, despite low
withsevere liquidity constraints, it has The goals comprise: meeting or exceeding
commodity prices and currency volatility, our financial commitments; further
notbeenpossible immediately to raise we were able to increase profitability.
prices in response to the movement in improving the customer experience in
Inthecurrent environment, the need for order to maintain and grow market share;
thecurrency. In the coming season, efficiency improvements has emerged
however, we will begin to do so, building and driving simplification in everything
asa prevalent industry theme. Syngenta
in focus
Crops
on our experience in the CIS countries. wedo to increase our speed and impact.
took early action in this respect, having Iam confident that we have the framework
Inthe meantime, our focus has been announced our Accelerating Operational
onhelpingour customers through this in place to achieve these goals, all of which
Leverage (AOL) program in February are underpinned by the AOL program.
periodof economic difficulty, while 2014.The program has three pillars
safeguarding our balance sheet Ourstrength in innovation, which has
global operations, commercial and R&D beenamply demonstrated in the course
throughrigorous risk management. with targeted savings of $1billion in 2018. of2015, will be a further driver in terms
Overall I am proud of the way we have Wedelivered savings ahead of target ofthe customer experience.
navigated through this period of currency at$300million in 2015 and are firmly
instability. Currency movements reduced ontrack to deliver the 2016 target. I have been deeply impressed by the
Growth Plan
The Good
our sales by $1.8billion in 2015 and yet loyalty and determination of our people
As part of our commitment to improved during the last year, which has brought
theimpact on EBITDA was contained profitability, we have undertaken a review
ataround $100million. considerable challenges. This gives me
of all our seeds businesses, which will be the utmost conviction that we can
concluded at the end of the first quarter
Ongoing promise achieveour goals and deliver on
of2016. We will assess the profitability Syngentas immense promise.
of emerging markets potential ofeach asset as well as its
During my career of over 30 years at importance inthe context of an
Syngenta and its legacy companies, integratedoffer.
performance
Operational
Ihavespent extended periods in both
Latin America and Asia Pacific. I remain R&D excellence
convinced that the emerging markets, At our R&D Days in September, we
which today are experiencing such demonstrated that Syngenta has the
turmoil,continue to represent the major mostproductive R&D engine in the John Ramsay
growth driver for our industry in the future. industry, with every dollar spent generating Chief Executive Officer
I am equally convinced that Syngenta $10.70 in sales over the last ten years. Ad interim
hasthe necessary skills and experience, Wealso explained that investment in
as well as the right portfolio, to succeed R&Dis not just about invention it must
data
Performance
C
reating value The
resources
through innovation we depend on
Our business enables growers to meet ever-growing demand
forfood and other plant-based resources such as biofuels.
Demand is rising: both for greater quantity, driven primarily Financial capital
bypopulation growth, and for higher quality, driven byrising
affluence and changing diets.
People and the
These needs must be met without putting further pressure intellectual property
onresources that are already overstretched. We help farmers they create
rise tothe challenge through innovation rooted in our deep
understanding of crops and the needs of growers worldwide.
Chemical, biological,
genetic and
computational sciences
Uniquely equipped to succeed It gives us particular strength in serving
No competitor comes close to our smallholders and emerging markets,
rangeof experience: in biosciences and where the greatest opportunities for
yieldimprovement and our business Natural resources
breeding; in chemistry; across a huge
variety of crops; and across geographies growth exist.
and climate zones worldwide. Our expertise and our open, collaborative Facilities and services
This enhances the scope and pace of culture have made us a trusted and
our innovation, enabling us to transfer sought-after partner: we have built
technologies between crops and a rich network of productive alliances
Local communities
address challenges with holistic with academic institutions, other
solutions that integrate both seed agricultural businesses and growers.
andcrop protection science. These relationships leverage our own
Laws and regulations
resources accelerating our innovation,
sharpening our production efficiency
andincreasing our flexibility.
Our business model Syngenta Annual Review 2015 07
overview
Strategic
What What we The value
Development
Research and
we do create we provide
in focus
Crops
Research and development Products, services and solutions Return on investment
What we do Who we work with for growers
rop protection
C cientists and
S and shareholders
discovery universities
andinnovation Research institutions
dvanced seed
A Crops
Farmers and suppliers
breeding
NGOs
Food, feed, fuel and fiber
ddressing insect,
A
fungus, weed and gricultural extension
A
environmental stress services Integrated
Growth Plan
The Good
oncrops solutions Sustainable intensification
for growers
of agriculture to provide
Production Adjacent food security
Products technologies
What we do Who we work with
Active ingredients Chemical suppliers Agronomic
Intermediates Toll manufacturers know-how Grower and
ormulation, fill
F Seed supply farms customer satisfaction
andpackaging awn and Garden
L
Seed production supply chain
Adjacent
performance
Operational
Products Crops technologies
Sustainable production
Commercial Herbicides Cereals Nutrients
What we do Who we work with Insecticides Corn inancial
F
roduct
P Growers Fungicides iverse
D services Development of our
management Distributors field crops I nformation peopleandpartners
Seedcare
Crop-based offers systems
Demonstration farms Seeds Rice alongthevalue chain
arketing, sales
M rocessors
P Soybean
anddistribution Traits
and the food chain pecialty
S
Agronomists crops
Economic value shared
data
Performance
gricultural
A Sugar cane
extension services withemployees, suppliers,
Vegetables
Technology providers governments and communities
awn
L
and Garden
Supporting activities
What we do Who we work with
Collective wellbeing
Stewardship Industry associations of communities
Product registration NGOs and IGOs
ealth, Safety,
H
Environment, Stimulating research
information
Corporate
Our strategy
Accelerating Integration:
five years on
valuecreation Create integrated offers
inthe field supported by
agronomic expertise and
Our focus is on delivering higher profitability and above-market adeep understanding of
growth, building on the success of our innovation. Weare grower needs now and
adapting our integrated strategy where necessary to ensure inthefuture
thatit isclosely aligned with the varying needs of our customers
around the world. Strong new products are vital for success,
andour ongoing investment in Research and Development is
securing theflow of innovation for many years to come. Syngenta was the first company to
develop an integrated strategy combining
crop protection, seeds, seed care and
traits. The value of the strategy is now
In a turbulent market environment, Ourstrategy needs to be at the service
widely recognized across the industry.
Syngentas ambition remains unchanged: ofprofitability as well as growth. We have
to bring greater food security in heightened our focus on cost efficiency, In the first five years of strategy
anenvironmentally sustainable way enabling us to deliver higher margins implementation, we have gathered
toanincreasingly populous world even in a context of lower crop prices. numerous insights from customers and
bycreating aworldwide step change Indoing so, we are exploiting the global from our sales people around the world.
infarm productivity. The launch of platforms put in place since launching This is enabling us to adapt and fine tune
TheGood Growth Plan and its increasing our integrated strategy in 2011. the strategy in accordance with the
influence across the business is taking conditions of each territory.
us nearer to realizing our ambition.
Broad technology platforms
Broad technology platforms, underpinned
by Research and Development (R&D), are
apre-requisite for providing comprehensive
solutions across crops. Syngenta is well
placed as the world number one in crop
protection, number three in seeds and
aleading player in both seed treatment and
genetically modified traits. We recognize,
however, that alone we cannot fulfil every
need. We have already demonstrated our
willingness to enter into partnerships and
collaborations to give our customers
access to additional tools.
overview
Strategic
Flow of innovation Innovation in seed breeding Market outperformance
Development
Research and
An upturn in innovation is now leading andtraits Our objective of above-market growth
toshare gain in a number of developed 20152020 isunderpinned by our recent new product
markets too. While a fully integrated Our HYVIDO hybrid barley will expand launches, current strong pipeline and
approach cannot be applied uniformly in further, demonstrating how innovation experience in tailoring and adapting
every market, we continue to strengthen canspur integrated offers in developed integrated offers. We are well placed in
our positions through the breadth and markets. In corn, our focus is increasingly theemerging markets, having completed
depth of our portfolio. With differentiated on the realization of trait revenues through aperiod ofextensive investments, and
seeds technologies such as HYVIDO and licensing agreements as well as through ourlong experience of managing risk is
ENOGEN, we can generate additional our branded business. In recent years, enabling us to navigate the current volatility
in focus
Crops
crop protection sales by demonstrating Syngenta has had the highest rate of trait in several of these countries.
the superior results achieved through innovation in the industry, and this has
combining genetics and chemistry. stimulated demand for both existing and Focus on seeds
future traits. As a result, trait revenue is Marketing seeds, which are often the
expected to more than double between growers first decision point, can expand
2014 and 2020. the opportunity for crop protection sales.
Innovation: delivering 20202025
While we have already seen evidence of
now and in the future Syngenta has a leading position in the
this in practice, we are also focusing on
maximizing profitability for each of our
Growth Plan
The Good
Bring strong new products development of hybrid wheat, building
seeds assets. We are developing clear
to market and combine onthe success of HYVIDO. We expect to
actions for each of the different crops
chemistry and genetics be first to market with this game-changing
within the business, with a particular focus
tocreate new solutions technology, with progressive launches
on those where profitability is significantly
across three regions.
andbusiness models below the average.
20252030
Starting in the middle of the next decade, Accelerating
the industry will see a new wave of trait Operational Leverage
performance
Operational
innovation in which Syngenta will again The improvement in seeds gross margin
Following the launch in 2014 of three play a leading role. Our pipeline includes will contribute to the increase in EBITDA
newactive ingredients including the replacement traits for insect control and margin targeted under the Accelerating
blockbuster ELATUS in 2015, we solutions for problems not yet addressed Operational Leverage program. The
launched ACURON, a new corn herbicide by traits, including sucking pests and program targets savings of $1billion in
and another blockbuster. The introduction soybean rust. 2018, with around 40 percent coming from
in the USA was positively received as a global supply, 40 percent from commercial
major step forward in managing resistant operations and 20percent from R&D.
weeds. Meanwhile, ELATUS continued There are multiple work streams driving
Outperform: targeting
data
Performance
togrow in its second season in Brazil. progress for each of these pillars. Cost
Thesuccess of both products shows above-market growth savings account for about 60percent of
thatour customers have an appetite the $1billion target, with the remainder
Our goal is to improve
fornew technologies even in depressed dependent on market growth of around
profitability while creating 4percent. Achievement of the cost
market conditions.
value for our customers savings is a paramount objective
through higher yields and throughout the organization.
better use of resources
information
Corporate
10 Syngenta Annual Review 2015
The industrys
Further solutions will come from our work
on bio-controls, which offer the advantage
of precisely targeted action and can
mostproductive
beused alongside synthetic chemistry.
Examples of current projects in this area
include RNA-based bio-controls to
innovation engine
combat Colorado potato beetle, and
weare now aiming to extend the scope
ofthis technology to corn rootworm and
other pests.
Syngenta invests around $1.4billion a year in R&D, and is unique Challenges such as heat, drought and
in combining chemistry, genetics, breeding and computational cold are known as abiotic stress and
science to develop new products and solutions. Our R&D represent future opportunity. Ourrecent
function is already the most productive and innovative in the solutions have included AGRISURE
industry, and we continue to increase returns while accelerating ARTESIAN optimized for water use
the pace of innovation. efficiency and ISABION, which
increases rice yields by protecting young
plants from cold during transplantation.
overview
Strategic
Accelerating the pace The major product launch in weed control ORONDIS is based on the AI
Development
Research and
ofinnovation was ACURON a breakthrough solution oxathiapiprolin, licensed from DuPont:
providing four active ingredients and three oneexample of the way we are using
Between 2008 and 2014, we launched an
different modes of action to help growers partnerships to bring innovation to the
average of one new active ingredient (AI)
manage weed resistance. We also market faster. Across our crop protection
ayear and over 600 new crop protection
received US approval for ORONDIS, portfolio in 2015, we released more than
products. Between 2016 and 2024,
which offers a step change in controlling 70 new formulations.
wearestepping up the pace, with 10 new
diseases such as downy mildew and late
AI launches planned from a pipeline with
blight, at significantly lower application
over $4billion of sales potential.
rates than other fungicides.
in focus
Crops
Recent active ingredient launches
Products introduced since 2008
Product Indication Crops Year of peak sales Peak sales
SEGURIS Fungicide Cereals, diverse field crops, rice, 2018 >$150m
specialty crops, vegetables
VIBRANCE Fungicide Cereals, corn, diverse field crops, rice, 2020 ~$500m
Growth Plan
The Good
soybean, specialty crops, vegetables
CLARIVA Seedcare Cereals, diverse field crops, soybean 2018 >$200m
ELATUS Fungicide Cereals, corn, diverse field crops, 2020 ~$1,000m
SOLATENOL soybean, specialty crops, vegetables
FORTENZA Seedcare Cereals, corn, diverse field crops, rice, 2018 >$400m
MINECTO soybean, specialtycrops, vegetables 2020
ACURON Herbicide Cereals, corn, diverse field crops 2020 >$500m
performance
Operational
New Crop Protection pipeline
New blockbusters in large markets
Product Indication Crops Status Launch year Peak sales
ADEPIDYN Fungicide Cereals, corn, soybean, Stage 3 2016/2017 >$750m
specialty crops, vegetables
Lead 1 Insecticide Multiple crops Stage 3 2021 >$750m
data
Performance
overview
Strategic
Investing in people
Development
Research and
andresources
Talent development is crucial to
maintaining leadership in innovation.
Ourtalent strategy attracts, retains and
develops scientists who can lead high-
performing teams. Diversity of experience
is fundamental to our approach, and
weactively pursue cross-functional
development across Syngenta. Additional
in focus
Crops
momentum comes from the launch of
ourcross-functional Career Development
Center with its purpose to drive career
aspirations and promote activities such
asmentoring and coaching.
The excellence of our teams continues
towin external recognition. Accolades
in2015 included the election of Mary Dell
Growth Plan
The Good
Chilton to the National Inventors Hall of
Fame in the USA; Principal Chemistry
Fellow Alain de Mesmaeker was appointed
the President of the Swiss Chemical
Society for his foundational work in
biotechnology; and our soybean
breedingprogram received the
2015FranzEdelmanAward. Smarter breeding brings results and rewards
Developing higher-yielding crop varieties is essential to
performance
Operational
We support our talented people with
constant investment in high-quality R&D producing more from less. One answer lies in agricultures
facilities. Our $94million investment in nextscience revolution analytics.
anew Innovation Center at Research
The Syngenta R&D soybean breeding team used advanced
Triangle Park in North Carolina, USA, is
mathematics and new tools to improve the process of growing
nearing completion for occupation in the
a wider variety of healthy crops. The tools dramatically
second quarter of 2016. This will provide
improved project lead training, decision-making and planning.
world-class facilities designed to stimulate
interactions across functions to drive The soybean breeding program won the 2015 Franz Edelman
data
Performance
innovation to new heights a testament to Award, the most prestigious recognition of applying advanced
our long-term commitment to advancing analytics to benefit business and humanitarian outcomes.
sustainable agricultural productivity.
The power of analytics is truly transformational in agriculture,
and we are now customizing these tools for use on corn,
sunflowers, rice and even watermelons.
information
Corporate
14 Syngenta Annual Review 2015
$1,686m
Our aim is to transform the way crops are grown by looking Crop Protection 1,553
ateach crop through the eyes of the grower. Weve integrated Seeds 133
overview
Strategic
in2015, as softening commodity prices
made premium products harder to sell.
Despite these conditions, we built on
ourcrop protection success in 2014,
increasing share in most markets. This
reflects the strength of our portfolio: with
both traditional and new technologies,
weoffer an unrivaled breadth of solutions
across all geographies, notably in the
Development
Research and
areaof resistance management.
Towards the end of the year, we received
registration for our breakthrough SDHI
fungicide SOLATENOL for wheat in the
USA. This new chemistry has already
shown major success against soybean
rust in Latin America. The US registration
came too late to affect 2015 sales
significantly, but will be a major driver
in focus
Crops
in2016.
Growth Plan
The Good
germplasm portfolio and strengthened the
opportunities open to us as we transfer In Italy, farmers have increased the production of biogas,
our hybridization technology from barley whichis used to generate electrical power or heat, by planting
towheat. HYVIDO hybrid barley instead of corn, wheat or triticale.
We are currently developing wheat hybrids HYVIDO offers several advantages over other crops; for
adapted to the highest-value markets, and example, it is more able to resist diseases, is more resilient
made encouraging progress in 2015 after tosevere weather conditions and produces more organic
successfully completing technical proof of material from each hectare. Also, farmers are able toplant
concept in late 2014. Having tackled the twocrops a year instead of one because HYVIDO
performance
Operational
technological aspects, we expect to launch hasashorter production time than alternative crops.
hybrid wheat around the end of this decade. In 2015, after just two years, HYVIDO accounted for
30,000hectares in Italy.
Profiting from innovation
inbarley
Meanwhile, HYVIDO has positioned us
atthe forefront of driving hybrid barley In France, the ongoing introduction of Outlook
adoption. In 2015, in a market facing the newhybrids has added to the attraction In 2016, we expect continued progress.
data
Performance
lowest commodity prices for a decade, ofthe offer: 40percent of our 2015 sales We will drive further cereals sales in the
weincreased European acreage of this were for products launched that year. Americas and in Europe through our
premium product by 20percent. With Backing HYVIDO with our Cashback partnerships with the value chain,
2015 launches in Italy, Serbia, Hungary, Yield Guarantee makes the choice very particularly in pasta and malting barley
Bulgaria and Romania, HYVIDO is rapidly attractive forfarmers, and planted acreage forbeer. SOLATENOL will be launched
replacing older technologies, with a strong doubled from 25,000 hectares in 2014 inNorth America, where it has significant
pull-through of our complementary crop to50,000hectares in 2015. We are sales potential, and has just received a
protection products. As the expansion targeting a similar increase in 2016. registration in Europe. VIBRANCE one
ofHYVIDO continues, we are also of our fastest-growing Seedcare products
information
Corporate
increasing profitability by developing new in North America and Europe will also
hybrids that cost less to produce and by benefit from new European registrations.
outsourcing hybrid supply.
16 Syngenta Annual Review 2015
Corn
Sales $m
$3,161m
Crop Protection 1,988
Seeds 1,173
overview
Strategic
equipment developed with Lindsay
Corporation. In 2015, the number of
hectares enrolled was up 70percent
with growers earning a return on
investment of around $230 per hectare.
Combating weed
andinsectresistance
Resistant weeds and insects are eroding Globally, we have 30percent market
Development
Research and
the effectiveness of conventional crop Diverse field crops shareof planted sunflower acreage but
38percent of crop value due to the high
protection practices and products. This
provides increasing opportunity for our value and performance of our hybrids.
strong technology portfolio and solutions Portfolio rejuvenation is a key part of our
with multiple modes of action. strategy, and between 2015 and 2016
wewill have replaced a third of our seeds
In 2015, our breakthrough herbicide portfolio as we introduce new next-
ACURON received approval by the generation herbicide-tolerant varieties
USEnvironmental Protection Agency. aswell as high-oleic varieties that meet
in focus
Crops
Combining a new chemical, bicyclopyrone, market needs.
with three other active ingredients, it
controls a wider range of weeds than Herbicide tolerance is a cost-effective
anyexisting selective herbicide used in Sales $m wayto improve yield, particularly in
corn and will be critical in making corn combination with our leading herbicides
production more sustainable. Though
approval came towards the end of the
$1,105m for broomrape control: LISTEGO and
CAPTORA. Our integrated offer is the
planting season, 200,000 hectares were
Crop Protection 593 only successful solution for broomrape,
treated in 2015; global sales are forecast Seeds 512 which can destroy a crop entirely. It will
spearhead our drive for growth across
Growth Plan
The Good
toreach $500million by 2020.
themarket in 2016.
Sales of our insect control traits are Current portfolio highlights
expanding, boosted by Chinas approval igh-value hybrids: NK,
H Oilseed rape
ofAGRISURE VIPTERA corn for import. SYNGENTA, SPS, MARIBO, We achieved ambitious crop protection
Insect resistance is a particular issue in HILLESHG sales targets in our key European markets.
thetropical conditions of Latin America, Seeds sales grew strongly as the market
Integrated sunflower weed control
where AGRISURE VIPTERA is the only trend towards hybridization continued. We
system: native trait, LISTEGO,
trait without resistance issues and the successfully integrated the German and
CAPTORA
onlyeffective response to a critical
performance
Operational
Polish winter oilseed rape breeding
challenge, fall armyworm. In North Enhanced root health: VIBRANCE
operations acquired in 2014.
America, our AGRISURE DURACADE
trait and FORCE insecticide are key European farmers continue to face crop
Diverse eld crops principally consisting damage resulting from the EUs temporary
toolsfor farmers combating corn
of sunower, oilseed rape and sugar suspension of neonicotinoid seed
rootworm pests.
beet are attractive crops offering treatment, which prevents use of the
Profiting from generally robust margins. Demand insecticide CRUISER. No current
isdriven by a wide range of markets:
technologyleadership alternatives are as effective as
vegetable oils and sugars, animal feed, CRUISER,but our contingency plans
data
Performance
In the year ahead, sales and profit industrial applications and biofuel
growthwill be powered by our unique forreplacement, as well as our continuing
production. Productivity varies widely, work on renewing our insecticide portfolio,
technologies particularly ENOGEN, offering ample scope for growth through
AGRISURE ARTESIAN and ACURON. are resulting in important new products
technology intensication. forboth the short and longer term.
We also expect further progress in
AsiaPacific: we are spearheading trait Sunflower In the Canadian canola seed market,
expansion in Vietnam, where we are Syngenta is the market leader in ourintegrated whole-farm approach
already market leader and have received sunflowers. In our largest markets, seed, crop protection and rotation with
approval for a trait that controls Asian Russiaand Ukraine, 2015 revenues were cereal crops is delivering good results,
information
Corporate
cornborer, a significant corn pest in impacted by adverse exchange rates and and further growth is expected in2016.
ASEAN countries. soft commodity prices. We were, however,
able to maintain profitability through
priceincreases.
18 Syngenta Annual Review 2015
overview
Strategic
weather in South Asia and ASEAN, had
anadverse effect on crop protection
salesin 2015. But successful product
introductions included CHESS and
VOLIAM TARGO, which performed
particularly well in South Asia and China.
Development
Research and
onthe Devgen two-line hybrid technology
platform. We anticipate market launch of
our first two-line products in 2018 in the
Philippines. Meanwhile, we have registered
our first locally-developed hybrid in the
important Vietnamese market.
We have been building capability in our
R&D and production organizations to
in focus
Crops
support future growth, while rationalizing
our existing seeds portfolio to raise
average margins.
We have discontinued the TEGRA
mechanized offer, which was not realizing
sufficient levels of profitability; however,
wewill continue towork on the related
technology, leveraging our experience
ISABION Untreated
intheGROMORE protocols.
Growth Plan
The Good
In 2016, we will be expanding the Overcoming natural threats to rice
smallholder approach to drive GROMORE Rice faces not only pests and disease, but also abiotic stress
sales in many more smallholder rice such as heat and cold. This affects growers in terms of yield,
markets, while building onthe success time and ultimately their livelihood.
ofour recent crop protection launches.
With ISABION, a biostimulant, rice can better withstand
abioticstress. By enhancing the plants nutrient uptake,
ISABION mitigates the impact of heat or cold and delivers
performance
Operational
superior yield under stress conditions. This is particularly
important in light ofclimate change.
In trials across Asia, rice seedlings treated with ISABION
weremore vigorous and yielded up to 1015 percent more
than untreated plants. ISABION is available in Asia including
China and India. New offerings in more countries and for
othercrops will follow.
data
Performance
information
Corporate
20 Syngenta Annual Review 2015
Soybean
Sales $m
$2,515m
Crop Protection 2,124
Seeds 391
Customized solution
Soybeans are the largest protein source to help increase productivity
inagriculture and are also used in biofuels.
Some 120million hectares are planted Soybean growers need to meet rising demand without
in25 countries. Over 70percent ofthis increasing the amount of farmland used, so improving
acreage is in Brazil, Argentina and yieldsisa constant challenge.
NorthAmerica, which as a result of In Brazil, Syngenta provides its High Yield Soybean
highyields account for over 80percent integrated crop solution, locally named INTEGRARE.
of global production. The offer designed based on grower insights and our
Global demand for soybean is growing at technology expertise can be customized to different
4percent annually. Yields are threatened environments. Itincludes best-in-class seeds, seed
by resistant weeds, particularly in the treatmentsand crop protection with robust protocols,
USA,and by disease and insects in combined with a choice ofagronomic or financial services
LatinAmerica. As suitable acreage is suchas nutritional advice orrisk management tools.
limited, soybean growers are under Following initial field results delivering 510 percent better
pressure to increase yields and are hence yieldthan competitors crops, the INTEGRARE solution
very receptive to technological solutions wasused on 300,000 hectares in 2015.
inbreeding, genetically modified (GM)
traits and in chemistry, where Syngenta
isthe market leader.
Leading the field Our herbicides also achieved strong
Our strategy focuses on delivering growth, driven by the success of our
solutions to growers that enhance yields
incropprotection
weedmanagement programs in the
without using more land, water or inputs. In crop protection, we have the leading
USAand Argentina to combat
We have been accelerating the pace of technology in herbicides, fungicides
glyphosateresistance.
innovation, not only in crop protection but andinsecticides.
also in seeds where we have pioneered The highlight of 2015 was the ramp-up
the use of applied analytics to breed ofELATUS in Brazil, following its launch
higher-performing varieties faster. in2014. This breakthrough fungicide
provides exceptional protection against
rust, and sales to soybean growers
inBrazil reached $384million.
Crops in focus Syngenta Annual Review 2015 21
Raising profitability
overview
Strategic
throughefficiency,
partnershipsand innovation
In soybean seeds, our emphasis in 2015
was on increasing profitability. Building on
our excellent germplasm portfolio, our use
of applied analytics has further enhanced
our ability to develop differentiated, high-
yielding varieties that complement our In 2015, we achieved more than
crop protection technology.
Development
Research and
Specialty crops 270new use registrations in Specialty
The rapid introduction of new traited crops. Theseincluded applications for
varieties in our Brazil portfolio was ourchlorantraniliprole-based insecticide
supported by a new partnership model, mixtures DURIVO, AMPLIGO and
which has multipliers in the market, VOLIAM TARGO across Europe. We
aswellas by a focus on efficiency anticipate a particularly strong grower
withinthe Accelerating Operational response to the launch in2016 of our
Leverage program. newhigh-performance fungicide,
ORONDIS, which achieved
in focus
Crops
An integrated strategy USregistration in late 2015.
forgrowth We also enhance existing products.
We are uniquely placed to help growers Sales $m In2015, we gained first registration for
increase their yields sustainably, and our aninnovative new formulation of our
integrated crop strategy in soybean builds
on the broadest portfolio in the industry.
$1,882m emamectin insecticide. On fruit trees,
potatoes and grapes, the new formula
We developed our High Yield Soybean Crop Protection 1,882 halves the application rate by using a
solution in close collaboration with our Seeds 0 sunscreen additive to reduce ultraviolet
customers, looking at their specific needs degradation of the active ingredient.
Growth Plan
The Good
for each crop stage and providing them
Current portfolio highlights
with a complete offer to increase yield and Potatoes: contributing
provide assurance of return on investment. road crop protection technology
B to food security in China
footprint and breadth Over the past three years of trial and
This solution combines our best-in-class
portfolio seeds, seed treatment and ecent launches: ELATUS,
R commercial use, our Potato Healthy
cropprotection and customized REFLECT, DYNALI, AMPLIGO, Tubersolution combining quality
protocols with agronomic support such DURIVO, VIBRANCE seedpotatoes, chemistry and growing
asnutrition advice and financial services ommercial ramp-up of
C protocols has helped Chinese growers
performance
Operational
including risk management. Tailored sustainability-based solutions to increase yields by over 30percent
foreach territory, it was first launched andearn a 3:1return on their investment.
inBrazilas INTEGRARE, with In2016, we plan further enhancements
300,000hectares planted in 2015. Our Specialty crops business is inpartnership with other leading suppliers
It is now being expanded in the USA focusedon crop protection in more inareas such as breeding and machinery.
under the AGRIEDGE umbrella with than40 high-value crops around the
150,000 hectares planted in 2015, world. Itholds strong positions in many Fruits: enhancing growers
and being piloted in Argentina markets,with around 80percent access to markets
asINTEGRASOJA. ofsalescoming from four principal Changing regulatory and food chain
data
Performance
as we introduce new traited varieties in our assessing new active ingredients for such as Chile and India. Growth will be
portfolio, and will further extend our High theirapplicability to specialty crops. boosted in 2016 by unique new digital
Yield Soybean solution. Wherenecessary, we then introduce applications offering faster and more
newformulations or make the best use precise market access recommendations.
ofexisting solutions.
22 Syngenta Annual Review 2015
Revolutionizing
overview
Strategic
Sugar cane sugar cane cultivation
In order to raise vigor and yields, we have
been developing new crop protection
protocols while pursuing our work on
breeding. We are producing high-quality
seedlings under the PLENE brand at
ourItpolis biofactory in Brazil. Branded
PLENE PB, these pre-germinated plants
are used by sugar mills and growers to
Development
Research and
plant their nurseries and to fill the gaps Vegetables
found in fields after crop establishment
Sales $m orafter harvesting, with the aim of
recovering the full yield potential of the
$271m fields. PLENEPB was introduced on
380hectares in 2014 and planted on
Crop Protection 271 2,500 hectares in 2015.
Seeds 0
Meanwhile, we are making further
in focus
Crops
progress towards the launch in 2017
Current portfolio highlights ofthefull PLENE program, incorporating
nique chemical solutions for biotic
U a system of direct mechanized planting.
This system is being developed through Sales $m
stress: MODDUS, CALLISTO,
ACTARA
Integrated fields
alicensing agreement for CEEDS
(CropExpansion Encapsulation and $1,540m
Drilling Systems), a technology allowing Crop Protection 924
Nursery solution: PLENE PB growers to plant small encapsulated Seeds 616
seedlings instead of large pieces of cut
Growth Plan
The Good
sugar cane. This increases the number
Demand for sugar cane continues to ofhectares that can be planted in a day, Current portfolio highlights
grow to feed the worlds increasing enabling mills and growers to further Innovative cyantraniliprole insecticide
appetite for sugar and also for use in improve yields and quality by planting only and seed treatment mixtures:
biofuel production. More than 40percent in optimal weather conditions. In 2016, sucking pests
of the worlds sugar cane is now produced wewill run the first demonstration plots
in Brazil, which has more than doubled with customers. road seeds portfolio with leading
B
itsproduction in the past decade. Brazil native traits: leafy and fruity
istherefore our largest single market for We are also harnessing our experience in vegetables, brassicas
performance
Operational
sugar cane. genetically modified traits for soybean and
ommercial ramp-up of MAXVEG
C
corn to develop new sugar cane varieties
In comparison to other field crops, integrated smallholder offer
as part of integrated solutions against
relatively few technologies are available for insects and herbicide resistance.
sugar cane, signifying considerable scope Our global Vegetables business covers
for intensification. Yields currently average Rationalizing to more than 30 species across five
75 tonnes per hectare, but could enhance profitability categories: peppers and tomatoes,
potentially be raised to several hundred melons and cucumbers, salad vegetables,
In 2015, we rationalized our crop
tonnes. Until recently, cultivation methods brassicas and sweet corn. Across all
protection portfolio but increased
remained highly traditional, with pest
data
Performance
Innovations drive
overview
Strategic
market share growth
In our key North American turf and
ornamentals market, we gained market
share through new product launches
including APPEAR, HERITAGE ACTION,
MAINSPRING, SECURE and VELISTA.
These offer customers value by increasing
productivity and sustainability and,
in turf applications, playability.
Development
Research and
Our professional pest management
business has expanded mainly in North
America, following successful integration
of the DuPont professional insecticides
portfolio acquired in 2012. Numerous
registrations currently pending will enable
us to introduce this innovative chemistry
portfolio in all of our other regions.
in focus
Crops
Thepotential was demonstrated in
2015by theexcellent take-up of
ACTELLIC CS300, which we launched
into many African countries. This
encapsulated insecticide provides
long-lasting control against malarial
mosquitoes resistant to pyrethroids.
We also made promising progress in
Controlling multiple turf diseases
Growth Plan
The Good
newtree care technologies including
micro-injection to control pests in trees The fungicide VELISTA successfully controls multiple diseases
inFrance. This is a highly profitable affecting turf through the innovative SDHI mode of action. It is
business where we are strongly avaluable addition to our portfolio, and can be used in rotation
positionedfor growth through our with other fungicides to help manage the resistance of turf
combination of high-value chemistry grass to other treatments.
andproduct innovation based on deep
understanding of customer needs. Syngentas formulation department was quickly able to
developthe newly-acquired active ingredient, penthiopyrad,
Flowers offer pleases retailers into a product that met the quality and efficacy required by
performance
Operational
Our premium flowers business is based thecompany and its customers.
onindustry-leading innovation, high-quality VELISTA has been well accepted by customers in the
genetics and an efficient distribution important golf sector, and sales have outstripped expectations.
network. A strong performance in 2015
resulted from increased profitability in the
mass market plants business, successful
reorganization of the Europe-based
FLORIPRO SERVICES and an improved
data
Performance
Securing a
Across our six commitments, we
areestablishing a growing body
ofproductive partnerships. We are
overview
Strategic
Make crops Producing high-quality pasta begins with growing top-quality
more efficient durum wheat, which has consistently high protein content. In
Italy, we are helping growers produce more, top-quality durum
Increase the average productivity wheat through the value chain project Grano Armando,
ofthe worlds major crops by guaranteeing them a higher, more reliable income.
20percent without using more
land,water or inputs More than 1,000 growers benefit from a sustainable cultivation
protocol, quality seeds and farmer support. The growers also
join a network that connects them with pasta manufacturers
Development
Research and
Average productivity increase1
inItaly.
2% Yields are 15 percent higher than average, and the protein
2020 20% content of the wheat is 14 percent, as opposed to the Italian
average of 12 percent.
2015 2 2%
2014 0%
1 On reference farms compared to baseline 2014
Farm network
in focus
Crops
2015 2014
Growth Plan
The Good
reference farms
hared results with farmers,
S
researchers and those seeking
tounderstand how best to save
scarce resources
ollaborating to harmonize data
C
exchange standards to accelerate
innovation in agriculture
performance
Operational
Feeding a fast-growing world population,
while mitigating the impacts of climate
change, requires a step change in farm
productivity and resource efficiency. We
are working with farmers to help them
grow more from less focusing particularly
on smallholders, who have the greatest
In 2015, thenetwork covered more than We are now gathering an abundance
potential to increase productivity.
data
Performance
1,000reference farms and just under ofreal-world farm data for 21 crops in
2,600 benchmark farms. Insome areas, 42countries. For 2015, the global average
Syngenta at the forefront of
such as China and parts of Latin America, productivity increase on reference farms
open data in agriculture weve doubled the number of reference was 2 percent.
To test and measure whats possible, farms to gain better insights.
wehave created a network of reference The unique and unprecedented data
farms across crops and regions in our Our crop advisers have been working with resource of The Good Growth Plan will
keymarkets. These farmers are working reference farmers to optimize the way they help us to understand what makes crops
with our eld experts to trial new solutions use new products coming out of our R&D and protocols more efficient. To turn the
pipeline and to provide feedback data for data into knowledge and insight, were
information
Corporate
overview
Strategic
Sustainable implementation on the farm
Development
Research and
also requires supportive agricultural policy
frameworks. Thats why we work with the
United Nations Convention to Combat
Desertification (UNCCD) and have
developed the Soil Leadership Academy
for policy and decision makers. In October
2015, the Academy successfully ran its
first simulation exercise for national policy
makers at the UNCCD Conference
in focus
Crops
inTurkey.
We have also worked with the United
Nations Global Compact (UNGC) on
developing aset of sustainable soil
management principles. These were
published in October 2015 after extensive
stakeholderconsultation.
What next?
Growth Plan
The Good
In the coming year, we will continue
working with our commercial teams
onbuilding good practices into our offer,
supporting demonstration projects on
theground and building multi-stakeholder
networks that promote integrated offers.
Inaddition to this push activity, we are
also encouraging pull from the value
Better soil leads to better crops
performance
Operational
chain raising awareness of good soil
practices among food processors and Fertile soil is the foundation of sustainable agriculture. But poor
retailers while promoting the benefits of farming practices and extreme weather lead to erosion and
marketing these practices to consumers, infertility. In Eastern Russia, we are helping farmers switch from
to stimulate demand for more sustainably traditional plowing to new techniques that preserve soil and
grown produce. increase growers yields.
Working with local universities, we educate farmers in minimum
tillage, which avoids churning up the earth. Soil retains moisture
and porosity, as the passages made by root systems, worms
data
Performance
erosionand protect waterways while scheme rewards farmers with seeds and
boosting biodiversity. support for planting field margins.
Help biodiversity
flourish A joined-up approach However, achieving desired results on the
ground is a slow and resource-intensive
tolandscape connectivity
Enhance biodiversity on process. Growers have to be convinced
5million hectares of farmland Syngenta has a long history of biodiversity toinvest in marginal and less productive
enhancement projects: our Ecoaguas land for biodiversity, and they need
project has been restoring and managing support in implementing the necessary
Impacted farmland m ha1
riparian forests in Colombia for two management protocols.
1.6m decades. In Germany, our customer loyalty
2020 5.0
2015 0.9 1.6
2014 0.7
1 Cumulative since baseline 2014
overview
Strategic
primarily through our sales teams. In
Empower emerging and less developed economies,
smallholders millions of growers are so small-scale and
dispersed that it is not easy to know where
Reach 20million smallholders
they are, what they grow or how to contact
andenable them to increase
them. Our sales management information
productivity by 50percent
system helps us reach them more
effectively by integrating information that
Two years into The Good Growth Plan, Smallholders reached1 identifies smallholders and tracks our
Development
Research and
17.2m
wehave projects in over 30 countries interactions with them. We have been
acrossEurope, Latin America, North standardizing the way we do this in Asia,
America and Asia. These encompass 2020 20.0 and we expect to do the same in Latin
avariety oflocal partnerships and 2015 17.2 America in 2016. This will help us to build
environmental andcultural approaches local smallholder profiles, understand
2014 13.8
tocreate multifunctional field margins, grower needs, develop and promote
1 Through sales
managed forests and biodiversity- locally tailored protocols and training,
friendlyfarming. Progress and key achievements andimprove our go-to-market strategies.
Our programs are now impacting a Our commitment is not just to reach
in focus
Crops
arried out Social Impact
C
totalarea of 1.6million hectares with Assessments in China, India smallholders but to empower them.
0.9million hectares added in 2015 alone andMexico Tobetter understand smallholders
but we still have a long way to go. We have needs,weare working with development
ollaborated with University
C
been working with partners around the agencies and other partners such as:
of Zurich to develop a sustainability
world toidentify priority programs, agree IDH,The Sustainable Trade Initiative; the
embeddedness model
specic targets and dene protocols for Sustainable Markets Intelligence Center
implementation. The core task is still to stablished new partnerships aimed
E (CIMS); and the Sustainable Food Lab.
raise awareness and establish biodiversity at empowering smallholders Tomeasure the benefits we are bringing
alongside water and soil conservation
Growth Plan
The Good
tolocal communities, we are using social
asaprimary goal for farmers and value- impact assessments of our smallholder
The worlds estimated 500million
chain partners. go-to-market strategies.
smallholders hold the key to future
Our work is dependent on engaging foodsecurity. Their relatively low In 2015, for example, an independent
stakeholders to stimulate dialogue and productivity means they offer the assessment by CIMS found that growers
explore environmental governance issues. greatestpotential forsteeply increasing in our Nicaraguan FRIJOLNICA
In 2015, we held two major international food production sustainably. program which now has over
workshops attended by more than 12,000participants were achieving
With partners such as USAID, we aim
60experts, with another 175 contributing double the national average kidney and
performance
Operational
toraise smallholders productivity and
through surveys. These have helped us black bean yield. They were more
earnings sustainably not only by bringing
tofind common ground and develop a optimistic about thefuture than the control
them products, know-how and training
compelling framework for implementing group and keento spread good practice
butalso by helping them to nance
and reporting biodiversity projects by sharing their insights with neighbors.
higher-yielding products and reach
moreeffectively and cost efficiently.
markets to sell their crops. We are now carrying out similar
What next? assessments in other smallholder
Reaching more, markets:China, India andMexico.
We continue to work with external andmeasuring our impact
stakeholders academics, policymakers
data
Performance
We estimate that over half of our sales Partnering to extend our reach
and conservation experts to build on
experience from the demonstration sites. arein developing economies dominated Through the World Economic Forums
To achieve the expected long-term by smallholder farmers, particularly in Grow Africa and Grow Asia platforms, we
economic benefits of biodiversity AsiaPacific, Latin America and Africa. work with other public and private players
conservation, we are also working to In2015, we increased the number of to develop partnerships that enable
linkgrowers to consumers. We are smallholders wereach through sales smallholder farmers to produce more
encouraging retailers and food processors from13.8million to17.2million. inasustainable way. In this way we can
to set biodiversity enhancement standards empower more growers, equipping them
for their suppliers, enabling them to with agronomic know-how and training
information
Corporate
promote sustainable food production that help them use inputs safely
andconsumption to consumers. andefficiently.
Anotherkey goal is to incorporate the
concept of multifunctional habitats into
ourcommercial offer, and make
investment in field margin habitats
simplerand cheaper for farmers.
32 Syngenta Annual Review 2015
Help people
stay safe
Train 20million farm workers
onlabor safety, especially
indeveloping countries
10.4m
2020 20.0
2015 5.7 10.4
2014 4.7
1 Cumulative since baseline 2014
overview
Strategic
Better training,
Training farmers to stay safe
Development
Research and
more lasting impact
As we work with farmers in Mexico to increase productivity
In 2015, we reached 5.7million people
inasustainable way, we ensure they are also trained in safe
more than 70 percent of them
useof crop protection products.
smallholders through dedicated safety
training programs or through safe use We have joined with government and partners from industry
briefings linked to commercial activities. inthe MasAgro program The Sustainable Modernization
The cumulative total of people reached ofTraditional Agriculture, overseen by the International Maize
inthe first two years of this commitment andWheat Improvement Center or CIMMYT. The aim is to target
exceeded 10million. smallholders who lack access to agricultural technologies and
in focus
Crops
markets to help them raise productivity of corn and wheat,
Safe use training has for many years been
increasing incomes.
an integral part of the way we do business
worldwide, but our approach has varied To ensure as many people as possible are trained, Syngenta
from country to country. As part of The experts educate CIMMYT technicians who then train farmers.
Good Growth Plan commitment we have In2015, the program reached 2,600 smallholders.
harmonized our approach, developing
guidelines and tools that enable our
people to plan and implement training
Growth Plan
The Good
consistently. These were launched in 2015
and are now distributed in six languages.
To embed the new guidelines, we also
rolled out revised train-the-trainer protocols
in 2015 initially in Latin America and Asia.
The primary focus of this work isnot on
the number of farm workers we reach, but
on the quality of training that our trainers
performance
Operational
impart and its lasting impact. To support
this initiative, we created a new online
tool:www.pesticidewise.com. Targeting
farmers and trainers, this aims toraise
awareness of the hazards and risks of
using pesticides and explains whatusers
can do to mitigate them.
data
Performance
information
Corporate
34 Syngenta Annual Review 2015
Major endorsement
Look after for our Fair Labor Program
every worker In 2015, we completed implementation of
our Fair Labor Program in the Philippines
Strive for fair labor conditions and began implementation in China.
throughout our entire Bythe end of the year, the program
supply chain network covered 27,091 suppliers in Asia Pacific,
Eastern Europe and Latin America.
Seed supply farms Thisrepresented 84 percent of our seed
We recognize that we dont have all the
in our Fair Labor Program1 supplychain, and we remain on track for
answers, and it is important to learn
100percent by 2020. The total number
84%
fromothers working in related fields. In
ofseed suppliers in 2015 was significantly
November 2015, we held a global Farmer
lower than in previous years, reflecting
Safety Workshop to share experience 2015 84% market demand and our work on
andideas with representatives of the value
2014 53% streamlining the supply chain.
chain, academia and other civil society 1 2014 value was estimated and not assured
organizations such as the Sustainable In 2015, we became the first agriculture
Agriculture Network, Solidaridad and Progress and key achievements company to receive FLA accreditation,
theCentre for Development Innovation forour program in India. This major
irst agricultural company to receive
F
atWageningen UR. This has deepened endorsement confirms that we have
FLA accreditation
ourunderstanding of the many cultural effective systems and procedures across
and behavioral factors involved in helping LOBALG.A.P./GRASP certification
G all our production and supply operations
farmers to work more responsibly and for our flower farms tocommunicate our standards, assess
safely. For example, we need to improve J oined Together for compliance, train staff to assess and
our training to target women in countries Sustainability initiative resolve non-compliance, and give workers
where they do much of the farm work, confidential reporting channels.
buthave not been encouraged to actively
Labor standards are a priority concern The program demonstrated its
participate in training sessions.
forall our farms and production plants. effectiveness by identifying key areas
What next? Weexpect the same from our suppliers, requiring improvement. These included
and take positive action to ensure fair wage payments, on-farm health, safety
In the year ahead we will be rolling out
laborconditions in our supply chain. and environmental measures, and access
newtraining programs based on our
to grievance mechanisms. Corrective
revised guidelines and incorporating Our more than 30,000 seed supply farms action plans were developed and actions
thelearning from our Farmer Safety in 36countries pose particular challenges. piloted in the following growing season.
Workshop. We are also adopting new Since 2004, we have worked with the
approaches and partnerships to extend FairLabor Association (FLA) to address All our own flower seeds production sites
our training footprint particularly in labor standards on these farms. Under in the Europe, Africa and Middle East
Africaand other areas where we need to ourFair Labor Program, our supplier region and our site in Guatemala are
supplement our own internal resources contracts set out standards in nine GLOBALG.A.P. certified, and our sites in
inorder to reach the number of people areas:Employment Relationship; Portugal and the Netherlands are certified
wehave committed to train. Nondiscrimination; Harassment and Abuse; to G.A.P.s social practice standard
Forced Labor; Child Labor; Freedom of (GRASP). By the end of 2015, our larger
Association and Collective Bargaining; third-party suppliers had also achieved
Health, Safety and Environment; Hours G.A.P. certification.
ofWork; and Compensation. Each year,
we audit compliance on at least
20percent of farms in each country;
theFLAindependently audits a further
2 to 5percent in higher-risk countries,
andensures transparency by publishing
allitsfindings.
The Good Growth Plan Syngenta Annual Review 2015 35
overview
Strategic
ourchemicals supply chain, and our
assessment program checks their
compliance with our health, safety, quality
and labor standards. In 2015, we joined
the Together for Sustainability initiative.
This brings together international chemical
companies 14 so far to share joint
supplier audits on health, safety,
environmental, social and ethical issues
Development
Research and
inline with the principles of the United
Nations Global Compact, Responsible
Care and the International Labor
Organization. This enables us to reach
deeper into our supply chain and to raise
the bar for suppliers. It will also free up
resources so that we can conduct deep
dive assessments of our strategically
mostimportant suppliers.
in focus
Crops
What next?
In 2016, we will continue to roll out our
FairLabor Program for seeds suppliers,
completing coverage of Latin America
andAsia Pacific. We will also begin
reporting compliance levels for all
countries in the program an important
step for transparency. While we have
Growth Plan
The Good
come a long way in improving labor
conditions inthe supply chain, we Taking a stand for fair labor
recognize that there is still more to be In Argentina, millions of people work in agriculture. Fair labor on
done. The GoodGrowth Plan measures farms is an issue of great importance. In 2011, an audit of our fair
will enable better informed discussion of labor compliance in Argentina carried out in partnership with the
the challenges we face and the progress Fair Labor Association (FLA) showed key areas for improvement.
we are making.
A subsequent supply chain review led to an ambitious program
to enhance labor and safety practices for field workers on our
performance
Operational
seed supply farms. This included improving workers access
Keep up to date with totraining, focusing on health and safety risk identification
TheGood Growth Plan andreporting. In 2015, our Argentine supply chain achieved
Throughout the year, we provide 99.5percent compliance with the FLA Code of Conduct.
updates on The Good Growth Plan
website. There, youll find more
information about each commitment
as well as a range of case studies
from the field. Visit:
data
Performance
www.goodgrowthplan.com
To find more about our approach to
open data or to access the files, visit:
www.data.syngenta.com
information
Corporate
36 Syngenta Annual Review 2015
Operational performance
Delivering outstanding quality We have built an internal Operational We now have a framework for
with focus on profitability Excellence team and trained our own sustainable operations, based on the
coaches so that we have in-house principle that we will maximize the pace
Our operations strategy encompasses
capability to apply this methodology and impact of our initiatives if we focus
allour procurement, supply, production,
overthe long term. on the areas offering greatest scope
distribution, quality and business
forbeneficial change. This framework
services. It aims to support profitable We continue to invest in our production
identifies five focus areas: energy, water,
growth by ensuring we deliver innovation assets to ensure that we have the right
waste, suppliers and logistics.
to growers with scale, agility and facilities and capacity to satisfy demand
efficiency. Our efforts have been efficiently. As part of our ongoing review Our operational performance has many
strengthened by Syngentas Accelerating of capacity, we also consider where we facets. But it all depends on one factor:
Operational Leverage (AOL) program, need our own production facilities and our people. The long-term success of
which has focused attention across whether it makes better sense to partner our business will be shaped by the talent,
thebusiness on enhancing efficiency, with external suppliers instead. skills and motivation of the people who
profitability and the experience we work here.
As an integral element of our operations
provide for customers.
strategy, we have continued to focus ee Non-financial information and data
S
A key enabler of AOL is the Operational onthe sustainability of our operations. on pages 5562
Excellence program that we are Just as The Good Growth Plan seeks
implementing. This is a well-proven toincrease the sustainability of our offers
approach to systematically and inthe eld by 2020, this work aims to
continuously improve the efficiency and secure the long-term viability of our
value of our operations. It is designed to internal and external operations.
unleash the potential of our people by
giving them a greater sense of direction,
engagement and achievement in
theirwork. It augments our culture of
innovation by bringing greater rigor and
discipline to the way we work. And it will
ensure that we improve the customer
experience as we increase the efficiency
of ouroperations.
Operational performance Syngenta Annual Review 2015 37
overview
Strategic
People
Development
Research and
Attrition rate %
2015 6.1
2014 5.5
2013 5.5
in focus
Crops
Recordable illness and injury rate
per 200,000 hours
2015 0.38
2014 0.37
2013 0.41
Growth Plan
The Good
innovation not only in the way we develop Connecting employees and customers
new products, but in the way we lead A group of employees based in the Philippines gained a better
andchange the organization. We invest in understanding of rice farmers and of The Good Growth Plan
recruiting, developing and enabling talented commitments with a visit to one of our learning centers.
people who can meet the challenges and
The employees learned more about the training we conduct
opportunities of our industry successfully.
forfarmers on technology, products and stewardship, helping
Developing our people to bring to life The Good Growth Plan commitments.
andcapabilities The employees also experienced the daily tasks farmers carry
performance
Operational
In 2015, we invested $25.1million (2014: out when the group took part in harvesting or planting rice
$29.8million) in training programs to help atthe center.
our employees achieve their potential
andto build the capabilities we need.
Allemployees took part in performance
review, goal setting and personal Managing change successfully The AOL program has resulted in around
development discussions with their line and responsibly 1,800 job reductions and relocations
managers throughout the year, and we across the business. As anticipated in last
We also invested in equipping a broad
continue to invest in building a more diverse years report, the majority of these were
cross-section of managers to lead and
data
Performance
Building our talent pool Since the launch of our new Health, Safety,
efficiently Environment and Security reporting
system at the end of 2013, we were able
We continued to have a high employee
to collect more and better data on health
retention rate in 2015. Due to restructuring,
and safety incidents. In 2015, we have
total turnover was 12.5 percent higher
been able to use this data to analyze risks
than in 2014 (9.9 percent) but still lower
to our peoples health andsafety more
than in 2013 (14.1 percent). The number
closely and take appropriate action to
ofvoluntary leavers which excludes
control and minimizethem.
retirement and restructuring rose slightly
to 6.1 percent (2014: 5.5 percent). Since 2011, our Goal Zero initiative has
Although our staff turnover remains
sought to achieve zero harm to people Sustainable
relatively low, we still need to recruit new
and zero safety incidents, on the principle operations
that all accidents are preventable. The
people each year not only to replace
construction project to quadruple the size
those who retire or leave, but also to enter
of our Formosa plant in Brazil exemplifies
new markets and acquire new skills
this commitment. While the plant
andexperience. In 2015, we entered a
maintained operations throughout the two-
partnership agreement with IBM Kenexa,
year project, with up to 1,500people on
one of the worlds largest recruitment
site, in 2015 it completed 1.2million hours
consultancies, to manage our global
worked without a single lost-time incident.
recruitment. Starting in the UK and Asia
Pacific in 2015, it will operate globally We also take the security of our people,
bythe end of 2016. products, assets and information CO2e emissions intensity g/$sales
extremely seriously at all times. As a global 2015 124
Working safely and securely organization, we remain exposed to a
2014 114
We aim to be an industry leader in health significant and complex range of potential
risks from the counterfeiting of our 2013 116
and safety standards and performance.
Tothis end, we make continuous products to cybercrime. We aim to assess
investments in our safety program and address emerging security risks Hazardous waste intensity g/$sales
tosustain a best-in-class Illness and proactively, before they become live
2015 14.4
InjuryRate (IIR) of below 0.5. The rate issues, and we train our local security
remained low in 2015, at0.38recordable staffin how to handle emergencies to 2014 15.6
incidents per 200,000hours (2014: 0.37). safeguard our people and surrounding 2013 16.0
This was a good performance in a year communities. In 2015, under our Security
that saw a further increase in the 360 program, our security professionals Water usage intensity liters/$sales
proportion of field work, where injury evaluated 117 sites to determine risk levels,
ratestend to be higher. and helped to develop site-specific risk 2015 2.6
management plans. 2014 2.5
Sadly, there was one fatality during the
2013 2.5
year: a sales promotion employee in Counterfeiting of our products can be
Bangladesh died when his motorcycle hazardous to users, the public and the
collided with a bus while he was returning environment. We have increased our
from a business meeting. We have resources for combating it, and in 2015 Our efficiency and our sustainability go
programs in place to continuously improve played an active part in securing seizures hand-in-hand. Our viability now and in
the safety of our sales force when driving, of some 323tonnes of counterfeit thefuture depends on using resources
including online e-training targeted at andillegally imported chemicals (2014: efciently and maintaining our license
accident causes. InLatin America, we 178tonnes) with an estimated retail value tooperate by minimizing our external
have introduced satellite-based tracking of$43million (2014: $17million). We also impacts. This is why our sustainability
offleet vehicles. This generates reports contributed to the seizures of 91tonnes standards and performance are
onparameters such as speed, seat belt ofcounterfeit seeds with an estimated closelyscrutinized and approved
use and driving time, which we use to market value of $11.4million. bySyngentasBoard.
identify the need forimprovement. In
Brazil, where it now covers one-third of
allvehicles, vehicle incidents in 2015 were
60 percent lower than in 2014. Across
Syngenta, the number of incidents per
million km driven was 1.3 in 2015 lower
than our benchmark figure of 2.03.0.
Operational performance Syngenta Annual Review 2015 39
overview
Strategic
Ensuring we have
Development
Research and
the capacity to deliver
Our Finished Product Processing teams
continue to deliver high-quality seeds
andcrop protection products to meet
demand safely, reliably, responsively
andcost effectively. Production is carried
out both in-house and through toll
manufacturers: we continually review
ourin-house production assets to
in focus
Crops
increaseagility, minimize disruption,
reduce idle capacity and ensure delivery
inline with our integrated strategy and
long-term goals.
In 2015, investment continued at our
Paulinia site in Brazil to ensure we can
meet demand for SOLATENOL in
LatinAmerica. We continue to build
Growth Plan
The Good
onestablished relationships with toll
manufacturers who have demonstrated
their ability to deliver to our quality and
coststandards.
All our eight global active ingredient sites
have ongoing lean initiatives to enhance
Operational Excellence and have Empowering people to achieve excellence
maintained their ability to deliver at high
Increased customer demand for crop protection products
performance
Operational
capacity. All expansion projects were
created production challenges at Syngentas diversified
delivered on time and budget, including
agri-chemical formulating and packaging facility in Omaha,
key projects at Huddersfield, UK, and
USA. Employees faced rising overtime and heavy workloads.
Monthey, Switzerland, as well as at
Nantong in China. In 2015, we announced To meet production targets without putting undue and
our intention to divest our site in Goa, unsustainable strain on resources, management introduced
India, in a further consolidation of Operational Excellence: a well-proven approach to continuously
internalcapacity. improve efficiency and value. By embracing the idea of
continuous improvement, employees changed the culture of
data
Performance
their site through a focus on new techniques and teamwork.
Today, four years on, overtime has been reduced, work
processes are more efficient and there is a more positive
working environment.
information
Corporate
40 Syngenta Annual Review 2015
Energy
Carry out detailed audit of our top 10 sites, The energy audit program is based on EU energy requirements: 2016
accounting for over 80 percent of our auditswill set baselines for all sites in the program with targets
energyuse forimprovement
Water
Establish a water footprint for the Seed supply is our principal water-using activity, so we are including 2016
seedsupplybusiness it in our data collection process and will cover water types and
usagepatterns
Waste
Establish waste footprints for the 10active Our hazardous waste comes mainly from active ingredient production: 2016
ingredientsgenerating over 80 percent a life-cycle approach to key products will cut hazardous waste generation
of our hazardous waste by optimizing processes and enhancing recycling and reuse
Suppliers
Conduct sustainability risk assessments This will identify the supply markets which represent the biggest 2016
for100percent of direct and indirect sustainability risks, to guide future action
procurementcategories
Actively participate in the Together for By applying consistent standards across the industry, this initiative 2016
Sustainability (TfS) initiative isimproving sustainable sourcing and raising standards across the
supply chain while cutting complexity and costs
Ensure 100 percent participation by active Regular audits will reduce risks from third-party waste management 2020
ingredient and other strategic suppliers
inourimprovement program, and by key
third-party waste treatment providers in
ourcompliance program
Logistics
Adopt fourth-party logistics (4PL) to cover A 4PL supplier acts as a single interface between the client and 2020
our global operations inCropProtection multiplelogistics service providers. Their role is to optimize the
andfield crops logisticsand transportation network in order to drive continuous
serviceimprovement and cost reduction. This can significantly cut
CO2emissions by optimizing road, rail and sea transport and storage
Operational performance Syngenta Annual Review 2015 41
overview
Strategic
Ensuring our viability We have identified priority actions for our The contribution to our carbon footprint
Development
Research and
for the future sustainability performance in these five from distribution has remained stable
focus areas. Our work so far has centered whilethe need for business travel has
In 2015, we increased our effort to analyze
on understanding our footprints, to see been reduced by the installationof
the external impacts of our operations
where the risks are highest and how we telepresence rooms at all ourmajor sites.
andidentified five key focus areas
can invest efficiently to achieve desirable Enabling people to join virtual meetings
forreducing our impact as set out
change. This in turn will allow us to set instead oftraveling savesenergy, travel
inthetable: Making our operations
location-specific targets that are relevant costs andmanagement time.
moresustainable.
and demanding a process scheduled
Waste
Three of the focus areas concern the tocomplete by the end of 2016. In the
One of our major impacts is hazardous
in focus
Crops
waywe use resources: energy, waste meantime, we have continued to work
waste, generated mostly by our active
andwater. Our energy and waste impacts ontracking and reducing our impacts,
ingredient manufacturing sites. As well
come primarily from our production sites; aswe have done for many years.
asreducing the waste generated during
and although we have some 300 of these,
Using resources more efficiently production, we aim to convert or reuse
just 10 sites account for about 80 percent
asmuch waste as possible. To do this,
of the impacts. We have, therefore, been Our environmental impacts arise mostly weconstantly review the opportunities
focusing our attention on these sites. inthe areas of energy, hazardous waste, foroptimizing both new and existing
While our water efficiency initiatives are wastewater and water consumption. processes, and for regenerating or
concentrating on the most water-intensive Asummary of each of these follows reusingunavoidable waste usually
Growth Plan
The Good
manufacturing sites, we understand that formore detailed performance data see asanadditional source of energy.
our greatest water-consuming activity by pages 6061. We report our performance
bothin absolute terms and as intensity In 2015, we reduced hazardous
far is seed production. We have, therefore,
expressed per dollar of sales. The benefits wastegeneration by 18 percent to
been devoting considerable attention to
of concentrating attention on the sites 193,000 tonnes due principally to
water use on our seed supply farms and
where our impacts are greatest are evident asubstantial initiative at our Huddersfield,
how best to manage it.
in the 2015 figures. UK, site and reduced production in Goa,
The two other focus areas concern the India. Thereduction in intensity was
way we work with third-party suppliers. Energy 8percent.
performance
Operational
Our business model is evolving to place We have energy efficiency programs
atallour sites. The drive for ever-greater Water
greater emphasis on outsourcing.
efficiency is continuous and permanent: Until recently, our data collection on
Asaresult, external suppliers now
when targets are met, we will set new wateruse has been largely confined
accountfor a large and growing
andmore demanding ones. toourmanufacturing sites. In 2015, we
partofour environmental footprint. So
commissioned a major third-party analysis
weareplacing more attention on the way We are currently undertaking detailed of our water footprint across our toll
wework together to help them manage energy audits on our top 10 sites, which manufacturing and seed production
their environmental impacts effectively and account for over 80 percent of our energy supply chains, as well as our own sites.
efficiently. In addition to our production use. These audits will guide target setting
data
Performance
In 2015, water use was down 7percent In our drive to ensure sustainable
inabsolute terms and practically procurement and to audit suppliers
unchanged in intensity. In our rigorously and efficiently we successfully
manufacturing operations, the applied to join Together for Sustainability
principalfactor was areduction in (TfS) in 2015. TfS brings together
waterconsumption for processing 14international chemical companies
mainlyinoursites at Goa, India, towork jointly on supplier audits and
Huddersfield, UK, andSt.Gabriel, USA. assessments on health, safety and the
environment, as well as social and ethical
Wastewater effluents were down 6percent
issues which support the principles of the
overall, although the principal factor was
reduced production.
UN Global Compact, Responsible Care Business integrity
and the International Labor Organization.
Air emissions Its vision is to become the global standard
Air emissions reduced in both absolute for sustainability in chemical supply
and intensity terms. This was partly due chains.TfS membership will help
tolower SO2 emissions resulting from usmeetthe commitments contained
reduced production at our Goa site. inThe Good Growth Plan; and by
eliminating duplication of audits, it
Working in partnership enablesus to raise the bar for suppliers
withsuppliers while achieving greater efficiency.
Our strategic approach to suppliers
ensures that we work with partners Distributing more efficiently,
with less CO2 Compliance cases reported
whomeet our standards of operation,
possessdifferentiated technical capability During 2015, we began optimizing our 2015 196
and are able to meet our expectations logistics activities both transport and 2014 96
ofyear-on-year cost savings, as well as storage to enable cost-efficient growth,
2013 110
understanding the benefits and risks of increased compliance and improved
working in our industry. visibility of operations while reducing our
carbon footprint. This work involves Corporate community investment
In 2015, our supply chain included more $m
standardizing and optimizing processes,
than 30,000 seed supply farms. We are
leveraging scale and making increasing 2015 24
committed to covering all these suppliers
use of fourth-party logistics providers in 2014 25
with our Fair Labor Program, developed
which a single partner integrates and co-
over more than a decade with the 2013 21
ordinates all logistics operations across the
FairLabor Association (FLA). This program
supply chain. This work will cut our CO2
aims to communicate, monitor and ensure
emissions, while increasing the efficiency,
FLA-approved standards on child labor, We believe that building and maintaining a
scalability and productivity of the way we
health and safety, rights awareness, culture of doing the right thing is crucial to
deliver our products to customers.
wages and benets, working hours, managing risk and growing a sustainably
harassment, abuse and discrimination. successful business. It is also the essential
In2015, 84 percent of seed supply farms foundation on which The Good Growth Plan
were covered by the program. For more is built.
details, see Look after every worker on
page 34. We comply with all local, national and
international laws, codes and conventions,
In October 2015, we received accreditation and uphold the principles set out in the
from the FLA for the Fair Labor Program Universal Declaration of Human Rights
inIndia. FLA accreditation is significant and the International Labor Organizations
recognition, and we are the first agriculture Core Conventions. We expect our
company to receive it. The FLA concluded suppliers to do the same.
that we have appropriately rigorous
systems and procedures to ensure fair
labor standards throughout our Indian
production and supply operations.
Operational performance Syngenta Annual Review 2015 43
overview
Strategic
But real business integrity demands more Our Compliance and Risk Management At many production sites we have
Development
Research and
than regulatory and legal compliance. We Committees (CRMCs) at region, territory introduced training programs for local
have been moving beyond a rules-based and function levels have been instrumental suppliers on our Code of Conduct and
approach to build a values-based culture in raising compliance awareness and other important policies.
of doing the right thing, which we share fostering the manager-led compliance
In 2016, we will continue to work on our
with our partners and suppliers. This sessions. These committees are our most
compliance culture and business integrity
supports our longstanding policy of important drivers of a compliance and risk
through manager-led sessions. For new
engaging actively with the communities management mindset and culture, and in
recruits, we will be supplementing the
inwhich we operate, to build mutual 2015, we produced a CRMC handbook
existing Code of Conduct training with a
understanding and benefit. tohelp leaders establish and run these
new e-learning module providing a fuller
in focus
Crops
meetings effectively.
Building a do the right overview of our key compliance policies,
Our success in establishing a climate of and we are taking additional steps to
thing culture
openness is demonstrated by a steady ensure that all new joiners complete
Our Code of Conduct sets out clear increase in questions being raised thecourses in full.
ethical, environmental, and social through line managers, CRMCs and the
responsibilities for all employees; we helpline. To give us a clearer overview, Earning the support
expect them to honor these and report allmatters initiated through any of these of our neighbors
any suspected breaches. We also monitor routes are being entered into a single Every country and region expects us to
our suppliers compliance both with our case-management system. We have now
Growth Plan
The Good
meet its legal and regulatory requirements;
standards and external regulations on adopted the annual total number of entries but we also strive to meet wider social
issues such as health and safety, the as the most useful performance indicator expectations. Our operations are part of
environment, fair labor practices and in this area: in 2015, the total was 196. local economies and communities, urban
animal welfare.
We continue to make our approach to and rural, in more than 90 countries
Building a do the right thing culture is an compliance more systematic and worldwide. We aim to benet them in
explicit line management responsibility. consistent globally. When we appoint avariety of ways.
Wehave introduced compliance sessions third-party service providers, we have We provide economic benet by paying
in which managers meet with their teams begun using a new due diligence process taxes and providing employment, as well
performance
Operational
to discuss relevant compliance topics and to screen them for compliance risks. This as by buying goods and services, which
encourage employees to speak up if they includes an online questionnaire and risk- we source locally where appropriate.
have concerns. We want to create a scoring tool that automates consistent Eachyear, we report this contribution
climate in which people feel confident assessment, approvals and controls. asEconomic value shared. In 2015,
about speaking to their leaders without Weare introducing the new process ittotaled $13,440million (2014:
hesitation, so that ethical issues can be progressively, using a risk-based $14,982million). The lower figure in 2015
addressed before they become problems. approach. In 2015, we piloted it in was due largely to reductions in purchased
Our compliance helpline, successfully re- Argentina, China, Morocco and Turkey goods and in savings as a result of our
launched in 2014, remains a vital part of toassess its effectiveness under a range Accelerating Operational Leverage
data
Performance
our vigilance in monitoring, detecting and of different conditions. In 2016, we will program there is a detailed breakdown
preventing misconduct by allowing rollit out to 10more countries. of the figures on page 62.
employees to seek advice or report
concerns confidentially.
information
Corporate
44 Syngenta Annual Review 2015
Our economic contribution is only part use of technology such as social media
ofthe picture. For many years we have todo this more effectively for example,
madeit a priority to engage directly byusing social media to communicate
andresponsively with local communities sitenews or alert neighbors before testing
wherever we operate. Good relationships emergency sirens.
are good for our business. We believe our
We support community initiatives through
interests are best served when we listen
sponsorships, donations and support
tolocal communities, share knowledge,
inkind. Under our new Community
protect the environment, promote health
Engagement policy launched in 2014,
and improve the quality of life so that
these contributions have focused more
weprotect our reputation and earn
closely on five areas where our support
Public debates
theirsupport.
has particular relevance: water efficiency,
For many years, our site managers have land use efficiency, support for agricultural
had an explicit responsibility to be open production and education, community
and available to their local community health and nutrition, and science
andrespond quickly to its needs and andeducation.
concerns. Many have made increasing
overview
Strategic
such as canola. In July 2015, the province Ensuring safe use of pesticides This case highlights a broader issue: the
Development
Research and
of Ontario implemented a new regulation Many agricultural chemicals can be need for greater harmonization between
targeting an 80 percent reduction in hazardous if used incorrectly. So we countries to achieve more consistent
neonicotinoid-treated corn and soybean attach great importance to growers using approaches to labeling and safe use
seeds by 2017. We are disappointed with them safely and responsibly. Our focus is standards. We believe the FAO is the
this decision, as the arbitrary reduction on product labels and on providing safe appropriate facilitator and arbiter for
intreated seeds planted is not evidence- use training for farm workers one of our thiswork.
based and will disadvantage growers commitments in The Good Growth Plan, ead more on the ICCPM:
R
www.fao.org and search ICCPM
without contributing to bee health. see page 32.
Bees and bee health are crucial to Treating growers fairly
in focus
Crops
We aim to comply with all local legislation
agriculture, and much of our industrys on product labeling, marketing and In December 2014, the Danish NGO,
seed production depends on bees for safeuse training and we review our DanWatch, published an online
pollination. This is why we have been compliance regularly. As a member of documentary alleging that we dealt
committed to bee health for many years theindustry body CropLife International, improperly with seed growers in rural
through initiatives like Operation Pollinator, we also undertake to comply with the Andhra Pradesh, India. It claimed that
which focuses on improving pollinator International Code of Conduct on Syngenta was party to exploitative
habitats and nutrition in the farm Pesticide Management (ICCPM) set moneylending to growers and that this,
landscape across the globe. outbythe UNs Food and Agriculture together with low seed prices paid to
Growth Plan
The Good
ead more on
R
www.operationpollinator.com
Organization (FAO) and the World growers, was linked to labor violations
HealthOrganization. onfarms.
Debating how to feed the planet
In 2015, a group of European NGOs filed Serious allegations demand a serious
Syngenta joined Basels exhibit at EXPO acomplaint with the FAO stating that response. We have worked with the
Milano 2015, where the theme was Syngenta, among others, was selling a FairLabor Association (FLA) since 2004
Feeding the planet, energy for life. number of products in the Indian Punjab toaddress labor conditions in our seed
Ourdisplay highlighted the challenges market carrying labels inconsistent with supply chain see Look after every
offood security and our R&D innovations the ICCPM standards. They argued that worker on page 34. So we asked the
and partnerships in pursuit of Indian labeling regulations are inadequate, FLAto commission an urgent independent
performance
Operational
sustainablesolutions. and that we should therefore apply ICCPM investigation. This confirmed that the
standards instead. moneylending and low-price allegations
Our participation drew criticism from some
were unfounded; but it did highlight areas
NGOs who, in anticipation of EXPO In line with agreed procedures, the FAO is
for improvement particularly in the
Milano, staged a protest against Syngenta. currently consulting on this issue with the
transparency of money flows between
Their overall charge was that Syngenta Indian government and other stakeholders;
intermediaries and growers. We took
ispart of a globalized agricultural system we have welcomed this approach. To
prompt action to implement improvements.
based on fossil fuels, chemistry and date, given the incompatibilities between
genetic research, which in their view Indian government regulations and the India faces acute labor and worker welfare
data
Performance
Regional performance
The deliberate reduction in glyphosate Thedeliberate reduction in glyphosate
Europe, Africa volumes and lower glyphosate prices volumes and lower glyphosate prices
and the Middle East reduced full year sales by 4 percent. reduced sales by $224million.
IntheUSA, ongoing low commodity
Sales1 $m prices negatively affected the demand
forcrop enhancement applications. Asia Pacific
2015 3,884 InCanada, sales were lower owing to
2014 4,547 dryweather conditions and high channel Sales1 $m
2013 4,223 inventories ofSeedcare products.
2015 1,837
2014 2,033
The region achieved further growth at
constant exchange rates in the fourth Latin America 2013 1,935
overview
Strategic
Insecticides Strong price gains were recorded in Asia
Crop Protection Sales1 $m Pacific, driven by increased adoption of
GM technology. Soybean sales in Latin
Selective herbicides 2015 1,705 America were lower, as sales were shifted
Sales1 $m 2014 2,066 to distributors as part of the implementation
2013 1,912 of the Integrated Business Partner model
2015 2,894
in Brazil.
Development
Research and
2014 3,083
2013 3,051
Growth came from price increases in
Europe and volume growth in Asia Pacific, Diverse field crops
Sales $m
as well as new product introductions in
Sales performance in North America
China and India. This did not compensate 2015 658
wasdriven by the success of ACURON,
for the impact of reduced sales in Latin 2014 827
whichachieved its target of $100million
America, due to dry weather and low
sales in its launch year. This more than 2013 842
insect pressure in Argentina and to high
offset theimpact of dry weather conditions
channel inventories in Brazil. However,
in Canada. In Europe, strong price gains Sunflower sales increased significantly
ACTARA performed strongly in Brazil in
in focus
Crops
were recorded in the CIS to compensate inEurope, the most important region,
the fourth quarter with an improvement
for currency depreciation. Sales in Latin reflecting substantial price increases
inthe sugar cane market.
America were higher as a result of the inthe CIS which fully offset the impact
change in sales terms in Brazil. ofcurrency depreciation. These price
Seedcare
increases had some impact on volume, as
Sales1 $m
Non-selective herbicides high-value hybrids faced competition from
Sales1 $m 2015 994 local seeds. Sugar beet sales were lower,
2014 1,115 as oversupply on the sugar market led to
2015 913
significant acreage shifts in Europe.
Growth Plan
The Good
2013 1,228
2014 1,445
2013 1,545 Vegetables
Growth in Europe reflected a solid
performance of Seedcare solutions for Sales $m
The sales decline is largely a result of
thecereals market in the CIS and Central 2015 616
thedecision to reduce volumes of solo
Europe. In Asia Pacific, sales were boosted 2014 663
glyphosate in order to improve the
by increased focus on key accounts in
profitability of the business. TOUCHDOWN 2013 708
China and by broad-based growth in
prices were also lower, reflecting a decline
Australasia. In North America, sales were
in the active ingredient purchasing costs. Growth was broad-based across
performance
Operational
affected by high channel inventories in the
GRAMOXONE sales inChina have been thefourregions. Price increases were
Canadian cereals market and lower cotton
phased out following aregulatory change robust, owing to a focus on capturing
acres in southern US states.
affecting paraquat liquidformulations. value for high-quality hybrids across the
portfolio and in particular to the strong
Fungicides Seeds return on investments being achieved
Sales1 $m bygrowers inSouth Asia. Sweet corn
sales in the USAwere affected by high
2015 3,357 Corn and soybean
processor inventories.
2014 3,518 Sales $m
data
Performance
Financial information
A summary of Syngentas consolidated financial statements andother
financial information isprovided on pages 48 to 54. Forfull details and
analysis of the Groups audited financial results, prepared in accordance
with IFRS, please refer to ourcomprehensive Financial Report 2015, which
isavailable onrequest or on our website www.ar2015.syngenta.com
2015
2015 2014 CER3
Gross profit margin excluding
restructuringandimpairment 47.5% 46.0% 49.1%
EBITDA4 2,777 2,926
EBITDA margin 20.7% 19.3%
Tax rate on results excluding restructuring
andimpairment 17% 15%
Free cash flow5 795 1,083
Trade working capital to sales6 38% 34%
Debt/Equity gearing7 31% 25%
Net debt7 2,586 2,248
Cash flow return on investment8 11% 11%
1 For further discussion of restructuring and impairment charges, see page 54. Net income and earnings per share excluding restructuring and impairment are provided as
additionalinformation and not as an alternative to net income and earnings per share determined in accordance with IFRS
2 The weighted average number of ordinary shares in issue used to calculate the earnings per share were as follows: For 2015 basic EPS 91,908,128 and diluted 92,206,535;
for 2014 basic EPS 91,674,127 and diluted 92,007,089
3 For a description of CER, see page 54
4 EBITDA is defined on page 54
5 For a description of free cash flow, see page 54
6 Period end trade working capital as a percentage of 12-month sales
7 For a description of net debt and the calculation of debt/equity gearing, see page 54
8 For a description of the cash flow return on investment calculation, see page 54
Performance data Financial information Syngenta Annual Review 2015 49
overview
Strategic
2015 2014 Actual CER
Year ended December 31 ($m) ($m) % %
Group sales
Europe, Africa and Middle East 3,884 4,547 -15 +10
North America 3,410 3,582 -5 -4
Latin America 3,632 4,279 -15 -5
Asia Pacific 1,837 2,033 -10 -3
Total integrated sales 12,763 14,441 -12
Development
Research and
Lawn and Garden 648 693 -7 +3
Group sales 13,411 15,134 -11 +1
in focus
Crops
Seeds by region
Europe, Africa and Middle East 1,017 1,274 -20 +9
North America 1,116 1,044 +7 +8
Latin America 400 522 -23 -6
Asia Pacific 305 315 -3 +2
Total 2,838 3,155 -10 +5
Growth Plan
The Good
Sales by business
Crop Protection 10,005 11,381 -12 -1
Seeds 2,838 3,155 -10 +5
Elimination of Crop Protection sales to Seeds (80) (95) n/a n/a
Total integrated sales 12,763 14,441 -12
Lawn and Garden 648 693 -7 +3
Group sales 13,411 15,134 -11 +1
performance
Operational
2015 2014 Actual CER
Year ended December 31 ($m) ($m) % %
Selective herbicides 2,894 3,083 -6 +6
Non-selective herbicides 913 1,445 -37 -31
Fungicides 3,357 3,518 -5 +9
Insecticides 1,705 2,066 -17 -8
Seedcare 994 1,115 -11
Other crop protection 142 154 -8 -1
data
Performance
overview
Strategic
At December 31 ($m) 2015 2014
Assets
Current assets:
Cash and cash equivalents 1,141 1,638
Trade receivables 4,128 3,698
Other accounts receivable 845 747
Inventories 4,345 4,861
Derivative and other financial assets 401 377
Development
Research and
Other current assets 338 244
Total current assets 11,198 11,565
Non-current assets:
Property, plant and equipment 3,383 3,562
Intangible assets 3,040 3,186
Deferred tax assets 783 1,008
Financial and other non-current assets 396 420
Associates and joint ventures 177 188
in focus
Crops
Total non-current assets 7,779 8,364
Total assets 18,977 19,929
Liabilities and equity
Current liabilities:
Trade accounts payable (3,311) (3,472)
Current financial debt and other financial liabilities (730) (1,329)
Income taxes payable (444) (706)
Other current liabilities (983) (984)
Growth Plan
The Good
Provisions (193) (216)
Total current liabilities (5,661) (6,707)
Non-current liabilities:
Financial debt and other non-current liabilities (3,501) (2,976)
Deferred tax liabilities (668) (665)
Provisions (727) (676)
Total non-current liabilities (4,896) (4,317)
Total liabilities (10,557) (11,024)
Equity:
performance
Operational
Shareholders equity (8,401) (8,889)
Non-controlling interests (19) (16)
Total equity (8,420) (8,905)
Total liabilities and equity (18,977) (19,929)
data
Performance
information
Corporate
52 Syngenta Annual Review 2015
overview
Strategic
Europe, Africa, North Latin Asia Non- Total Lawn and
2015 ($m) Middle East America America Pacific regional integrated Garden Group
Sales 3,884 3,410 3,632 1,837 12,763 648 13,411
Cost of goods sold (1,889) (1,779) (2,118) (1,012) 54 (6,744) (298) (7,042)
Gross profit 1,995 1,631 1,514 825 54 6,019 350 6,369
Marketing and distribution (586) (537) (557) (286) (83) (2,049) (161) (2,210)
Research and development (1,310) (1,310) (52) (1,362)
General and administrative (126) (84) (39) (35) (274) (558) (10) (568)
Development
Research and
Operating income/(loss) 1,283 1,010 918 504 (1,613) 2,102 127 2,229
in focus
Crops
Research and development (1,376) (1,376) (54) (1,430)
General and administrative (161) (92) (77) (48) (307) (685) (32) (717)
Operating income/(loss) 1,499 923 1,095 564 (1,885) 2,196 115 2,311
Growth Plan
The Good
2015 ($m) Middle East America America Pacific regional integrated Garden Group
Operating income/(loss) 1,155 973 890 484 (1,781) 1,721 120 1,841
Restructuring and impairment:
Expenses 128 37 28 20 168 381 7 388
Operating income excluding
restructuring and impairment 1,283 1,010 918 504 (1,613) 2,102 127 2,229
Operating margin (%) 33.1 29.6 25.3 27.5 n/a 16.5 19.6 16.6
performance
Operational
Europe, Africa, North Latin Asia Non- Total Lawn and
2014 ($m) Middle East America America Pacific regional integrated Garden Group
Operating income/(loss) 1,456 901 1,069 560 (1,981) 2,005 100 2,105
Restructuring and impairment:
Cost of goods sold1 13 13 13
Expenses 30 22 26 4 96 178 15 193
Operating income excluding
restructuring and impairment 1,499 923 1,095 564 (1,885) 2,196 115 2,311
Operating margin (%) 33.0 25.8 25.6 27.8 n/a 15.2 16.6 15.3
data
Performance
Constant exchange rates (CER) Restructuring includes the incremental Net debt reconciliation
Results in this report from one period to costs of closing, restructuring or relocating Net debt comprises total debt net of cash
another period are, where appropriate, existing operations, and gains or losses and cash equivalents and marketable
compared using constant exchange rates from related asset disposals. Restructuring securities. During 2015, Syngenta
(CER). To present that information, current also includes the effects of analyzing and redefined net debt to exclude fair values
period results for entities reporting in preparing for potential industry consolidation offinancing-related derivatives, as these
currencies other than US dollars are transactions as well as completing and are now offset by the financial assets and
converted into US dollars at the prior integrating significant business combinations liabilities arising from collateral paid and
periods exchange rates, rather than at and divestments, including related received under Credit Support Annex
theexchange rates for the current year. transaction costs, gains and losses. contracts (CSAs). Net debt is not a
CER margin percentages for gross profit Recurring costs of normal business measure of financial position under
and EBITDA are calculated by the ratio operations and routine asset disposal generally accepted accounting principles
ofthese measures to sales after restating gains and losses are excluded. and the net debt measure used by
themeasures and sales at prior period Syngenta may not be comparable to the
exchange rates. The CER presentation Impairment includes impairment losses similarly titled measure of other companies.
indicates the underlying business associated with major restructuring as Net debt has been included as it is used by
performance before taking into account wellas impairment losses and reversals many investors as a useful measure of
currency exchange fluctuations. ofimpairment losses resulting from major financial position and risk. The following
changes in the markets in which table presents the derivation of the debt/
areportedsegment operates. equity gearing ratio:
EBITDA
EBITDA is defined as earnings before The incidence of these business changes ($m) 2015 20141
interest, tax, non-controlling interests, may be periodic and the effect on reported Net debt 2,586 2,248
depreciation, amortization, restructuring performance of initiating them will vary from Shareholders equity 8,401 8,889
and impairment. Information concerning period to period. As each such business Debt/Equity gearing ratio 31% 25%
EBITDA has been included as it is used change is different in nature and scope, 1 Under the definition of net debt used in 2014,
bymanagement and by investors as there will be little continuity in the detailed debt/equity gearing ratio was 27%
asupplementary measure of operating composition and size of the reported
performance. Management excludes amounts which affect performance in Cash flow return oninvestment
restructuring from EBITDA in order to successive periods. Separate disclosure Cash flow return on investment is a
focuson results excluding items affecting ofthese amounts facilitates the measure used by Syngenta to compare
comparability from one period to the next. understanding of performance including cash returns to average invested capital.
EBITDA is not a measure of cash liquidity and excluding items affecting Gross cash flow used in the calculation
or financial performance under generally comparability. Syngentas definition of comprises cash flow before change in net
accepted accounting principles and the restructuring and impairment may not be working capital, excluding interest and
EBITDA measures used by Syngenta may comparable to similarly titled line items in other financial receipts and payments.
not be comparable to other similarly titled financial statements of other companies. Invested capital comprises: total current
measures of other companies. EBITDA
assets, excluding cash and derivative and
should not be construed as an alternative
Free cash flow other financial assets; total non-current
to operating income or cash flow as
Free cash flow comprises cash flow from assets, excluding non-current derivative
determined in accordance with generally
operating and investing activities: excluding and other financial assets and defined
accepted accounting principles.
investments in and proceeds from benefit pension assets, and adjusted to
marketable securities, which are included reflect the gross book values of property,
Restructuring and in investing activities; excluding cash flows plant and equipment and intangible
impairment before taxes from and used for foreign exchange assets; total current liabilities, excluding
Restructuring represents the effect on movements and settlement of related current financial debt and other financial
reported performance of initiating and hedges on inter-company loans, which liabilities; and deferred tax liabilities.
enabling business changes that are areincluded in operating activities; and
considered major and that, in the opinion including cash flows from acquisitions
ofmanagement, will have a material effect ofnon-controlling interests, which are
on the nature and focus of Syngentas included in financing activities.
operations, and therefore require separate
disclosure to provide a more thorough Free cash flow is not a measure of financial
understanding of business performance. performance under generally accepted
accounting principles and the free cash
flow measure used by Syngenta may not
be identical to similarly titled measures of
other companies. Free cash flow has been
included as it is used by many investors
asa useful supplementary measure of
cash generation.
Performance data Non-financial information Syngenta Annual Review 2015 55
Non-financial information
overview
Strategic
At Syngenta, non-financial information refers to quantitative andqualitative
information on strategies, policies or activities pursued towards our business,
environmental and social goals.
Our non-financial performance is reported Corporate Responsibility Our interaction with industry associations,
Development
Research and
throughout this Annual Review and governance non-governmental organizations,
quantified in the Non-financial performance governments and the investor community
Our Board-level Corporate Responsibility
summary on pages 57 to 62. enables us to gather feedback on our
Committee, chaired by the Syngenta
activities and monitor issues important
Chairman, acts as custodian on all
Corporate Responsibility tostakeholders. We conduct research
CRmatters. At senior executive level,
Corporate Responsibility (CR) is integral tobetter understand consumers
theCorporate Responsibility Panel
toour business. Our ambition is to bring perceptions of topics associated with
directs CR-related standards, strategy,
greater food security to an increasingly agriculture and our industry; and we
objectives and partnerships, and the
populous world in an environmentally aimtobe open and accessible for
Compliance and Risk Management
in focus
Crops
sustainable way by creating a worldwide example, answering their frequently
Committee reviews and advises on non-
step change in farm productivity. askedquestionsunder Questions
financial reporting andthe effectiveness
The Good Growth Plan sets specific, aboutSyngenta on our website.
of implementation ofinternal policies.
ambitious and measurable targets In 2015, we conducted an assessment to
focusedon boosting resource efficiency, Materiality and stakeholder identify our most material issues to help
rejuvenating ecosystems and engagement drive our strategy, determine allocation
strengthening rural communities. We are ofeffort and resources, and guide our
We regularly assess stakeholder concerns
also committed todeveloping our people, external communication and reporting.
and expectations, as well as the issues
reducing our environmental footprint, The most important issue to our
Growth Plan
The Good
that we believe present the greatest risks
enhancing our social engagement, raising stakeholders is our contribution to food
and opportunities for our business. We
supply chain sustainability and doing security. In particular, they want to know
engage with and collect feedback from
business responsibly. Syngenta is guided how our technologies and products will
stakeholders in a variety of ways. We listen
by the conviction that short-, medium- enable growers to deliver sustainably the
to the grower community through
andlongterm value creation depends quality and quantity of food needed by
satisfaction surveys and farmers direct
onsuccessfully integrating business, agrowing population. We contribute to
contact with our sales teams on the
socialand environmental performance. addressing these issues through our
ground. We also engage directly with
ouremployees and locally with the GoodGrowth Plan.
performance
Operational
communities close to our operations.
data
Performance
Director Board of
Corporate
level Directors
Responsibility
Committee
information
Corporate
Approach to Our non-financial reporting is for the Syngentas internal controls over non-
non-financial reporting operations of Syngenta Group, including financial reporting were designed to
material interactions with selected third provide assurance to Syngentas Board
The Non-financial performance summary
parties as reported in the Non-financial ofDirectors and management regarding
on the following pages presents data on
performance summary. Our non-financial the reliability of non-financial reporting
our progress towards four goals:
reporting is guided by the Global Reporting andthe preparation and fair presentation
Initiative principles and is externally assured, of the information published in the Non-
The Good Growth Plan
see page 63. The non-financial reporting financial performance summary.
Help shape the future sustainability of
period is October 1 to September 30.
agriculture, and deliver solutions that All internal controls, no matter how well
arebetter, more productive and more Syngenta is a signatory to the United designed, have inherent limitations and
beneficial to rural economies Nations Global Compact. Syngentas therefore may not prevent or detect
Annual Report serves as our misstatements. In designing internal
People Communication on Progress (COP) controls over non-financial reporting,
Attract and retain talent while creating madein implementing these principles. Syngenta used the criteria established in
anenvironment that stimulates Internal Control Integrated Framework
innovation and personal performance Approval of Non-financial (2013) issued by the Committee of
and development performance summary Sponsoring Organizations of the
Sustainable operations The information in the Non-financial TreadwayCommission (COSO).
Manage our environmental footprint performance summary on pages 57 to PricewaterhouseCoopers AG, Switzerland,
andmaintain the highest standards 62of the Annual Review was approved an independent registered public
inouroperations bytheBoard of Directors on February 2, accounting firm, has issued an opinion
2016. Syngentas Board of Directors onSyngentas Non-financial performance
Business integrity andmanagement are responsible summary, which is included in the Annual
Maintain the highest standards across forestablishing and maintaining Review on page 63.
ourentire business and go beyond adequate internal controls over ead more on:
R
regulatory compliance, while benefiting non-financial reporting.
www.cr.syngenta.com
www.questions.syngenta.com
thecommunities and economies www.gri.syngenta.com
inwhichwe operate
Materiality matrix
Focus areas Monitored activities Positions
We share our views, we We share our views, and We share our views on the
Focus measure and evaluate we measure and evaluate issues that engage public
Importance to stakeholders
areas performance, and we have performance on these interest and have a bearing
set or plan to set goals or issues to sustain the trust on our business.
quantitative targets on the and confidence of our Biofuels
Monitored most important issues, in stakeholders, and for us to Biotechnology
activities particular our contribution be a responsible business. Climate change adaptation
to food security. Animals in research Diminishing crop diversity
Biodiversity Community relations and and monoculture practices
overview
Strategic
The Good Growth Plan
2015 2014 2013
Make crops more efficient1
Total number of reference farms 1,062 860
Total number of benchmark farms 2,586 2,738
Annual average productivity increase on reference farms compared to baseline 2014 2%
Development
Research and
compared to baseline 20143,4 compared to baseline 20143,4
2015 2014 2013 2015 2014 2013
Total number of clusters2 172 205 172 205
Land productivity index:
0% 148 205 149 205
>0<5% 6 6
5<10% 5 5
10<15% 3 3
15<20% 4 4
in focus
Crops
20% 6 5
Nutrient efficiency index:
0% 148 205 146 205
>0<5% 2 5
5<10% 0 2
10<15% 5 4
15<20% 2 2
20% 15 13
Growth Plan
The Good
Pesticide efficiency index:
0% 145 205 146 205
>0<5% 4 2
5<10% 1 2
10<15% 3 1
15<20% 0 1
20% 19 20
1 2014 first year of reporting
2 Reduced number of clusters in 2015 due to cluster consolidation
performance
Operational
3 2014 value was restated to represent clusters with reference and/or benchmark farms
4 Number of clusters with reference and/or benchmark farms per range of percentage increase in land productivity, nutrient efficiency and pesticide efficiency
since the 2014 baseline. US Department of Agriculture data are used for benchmark farms in clusters located in the USA
The table above presents the number of reference farms, benchmark farms
and clusters in the network. It also outlines the distribution of percentage increases
in land productivity, nutrient efficiency and pesticide efficiency on a cluster basis.
A cluster presents homogeneous agro-climatic conditions and contains reference and/
orbenchmark farms with similar grower characteristics. Reference farms were selected
data
Performance
by Syngenta and are recommended to use Syngenta products and follow optimized
protocols. Benchmark farms were randomly selected by a third-party research agency
and represent grower practice for each cluster. The reduction of clusters in 2015
versus2014 was due to the consolidation of some clusters with similar conditions
andcharacteristics.
Performance of reference and benchmark farm clusters compared to baseline 2014
represents the distribution of percentage increases achieved in reference and
benchmark farms compared to the baseline year on a cluster basis. The table
is set up to show trends over time on reference and benchmark farms. As the
information
Corporate
ead more about how we are measuring The Good Growth Plan
R
on www.data.syngenta.com
58 Syngenta Annual Review 2015
Empower smallholders1
Smallholders reached through sales (m)2 17.2 13.8
People
2015 2014 2013
Employment
Employees1 28,704 29,340 28,149
Europe, Africa and Middle East2 13,047 13,300 12,763
North America 4,335 4,636 4,654
Latin America 4,962 4,945 5,221
Asia Pacific 6,360 6,459 5,511
Part-time employees 984 948 976
Turnover rate3 12.5% 9.9% 14.1%
of which: <35 years 41% 43% 43%
3550 years 43% 41% 35%
>50 years 16% 16% 22%
Attrition rate4 6.1% 5.5% 5.5%
Senior managers 332 359 366
Headquarters 44% 42% 47%
Europe, Africa and Middle East 16% 18% 13%
North America 18% 18% 18%
Latin America 12% 12% 12%
Asia Pacific 10% 10% 10%
People continued
overview
Strategic
2015 2014 2013
Diversity
Nationalities in senior management1 33 37 41
Female employees 30% 29% 30%
Female employees in management roles 22% 21% 20%
Female employees in senior management 14% 13% 13%
Employee development2
Training investment ($m) 25.1 29.8 27.1
Development
Research and
Average training investment per employee ($)3 874 1,015 964
in focus
Crops
Recordable injury and illness rate (IIR) per 200,000 hours5 0.38 0.37 0.41
Recordable injury rate per 200,000 hours5 0.35 0.33 0.35
Europe, Africa and Middle East6 0.48 0.41 0.38
North America 0.69 0.54 0.64
Latin America 0.24 0.41 0.38
Asia Pacific 0.11 0.10 0.15
Recordable occupational illness rate per 200,000 hours5 0.03 0.04 0.07
Europe, Africa and Middle East6 0.04 0.03 0.07
Growth Plan
The Good
North America 0.04 0.02 0.14
Latin America 0.06 0.12 0.08
Asia Pacific 0.01 0.01 0.02
First aid cases 413 420 623
Recordable injuries7 154 145 148
Bruise, strain, sprain and dislocation 39% 52% 44%
Cut and abrasion 31% 19% 22%
Bone fracture 13% 11% 15%
Concussion and internal injury 3% 4% 1%
performance
Operational
Multiple injuries 1% 3%
Other 13% 11% 18%
Cases of recordable occupational illness 14 17 28
Cases of work-related stress 26 35 36
1 2014 value was restated due to a calculation error and revised definition
2 Includes only training delivered by external providers
3 Permanent full-time equivalent (FTE)
4 2014 value was restated due to late reporting from one country
5 According to US OSHA definition for injuries and illness
data
Performance
6 Including headquarters (Switzerland)
7 New reporting system and injury categories introduced in 2014. 2013 percentages were restated in 2014 to align to new breakdown
information
Corporate
60 Syngenta Annual Review 2015
Sustainable operations
2015 2014 2013
Energy
Energy intensity (MJ/$sales) 0.69 0.66 0.69
Energy (TJ) 9,222 9,930 10,202
Gas (TJ) 3,840 3,946 4,050
Electricity (TJ) 2,349 2,460 2,459
Steam (TJ) 1,547 1,633 1,578
Oil (TJ) 536 854 975
Other (TJ) 950 1,037 1,140
Greenhouse gases
Total CO2e emissions intensity (g/$sales) 124 114 116
Total CO2e emissions (000s tonnes) 1,660 1,730 1,710
Within direct control:
CO2e emissions from own operations (000s tonnes) 574 620 634
CO2 emissions from company vehicles (000s tonnes) 70 75 76
Within indirect control:
CO2e emissions from purchased energy (000s tonnes) 400 419 417
CO2 emissions from business trips (000s tonnes) 36 43 40
CO2 emissions from distribution (000s tonnes) 580 573 543
Water
Water usage intensity (liters/$sales) 2.6 2.5 2.5
Water usage (million cubic meters) 35.0 37.8 36.8
Cooling (million cubic meters) 20.8 21.2 19.4
Irrigation (million cubic meters) 6.8 7.0 7.6
Processing and washing (million cubic meters) 5.3 7.3 7.4
Product ingredient (million cubic meters) 0.2 0.3 0.3
Sewage and sanitary (million cubic meters) 1.1 1.0 1.1
Other (million cubic meters) 0.8 1.0 1.0
Origin of water:
Surface fresh water (million cubic meters) 24.4 26.7 25.6
Underground water (million cubic meters) 7.8 7.7 7.8
Drinking water from municipal network (million cubic meters) 2.7 2.9 3.0
Recovered rain water (million cubic meters) 0.1 0.1 0.1
Saline water (million cubic meters) 0.0 0.4 0.3
Performance data Non-financial information Syngenta Annual Review 2015 61
overview
Strategic
2015 2014 2013
Wastewater effluents
Industrial wastewater discharge intensity (liters/$sales) 0.70 0.66 0.74
Industrial wastewater discharge (million cubic meters) 9.4 10.0 10.8
Total organic carbon (TOC) (tonnes) 649 687 879
Chemical oxygen demand (COD) (tonnes) 1,953 2,059 2,679
Biological oxygen demand (BOD) (tonnes) 189 197 225
Total suspended solids (tonnes) 294 370 345
Soluble salts discharged (000s tonnes) 125 137 143
Development
Research and
Direct discharge of uncontaminated cooling water (million cubic meters) 20.5 21.0 19.1
Waste
Hazardous waste intensity (g/$sales) 14.4 15.6 16.0
Hazardous waste (000s tonnes) 193 236 235
Recycled and re-used (000s tonnes) 95 114 72
Incinerated (000s tonnes) 83 106 148
Landfill (000s tonnes) 1 1 3
in focus
Crops
Other (000s tonnes) 14 15 12
Hazardous waste by type:
Chemical 55% 59% 66%
Solvents 36% 33% 27%
Other 9% 8% 7%
Growth Plan
The Good
Recycled and re-used (000s tonnes) 96 106 101
Incinerated (000s tonnes) 3 9 8
Landfill (000s tonnes) 21 20 17
Other (000s tonnes) 10 8 6
Non-hazardous waste by type:
Plant and seed waste from seed sites 58% 65% 66%
Inerts 8% 4% 3%
Packaging materials 6% 6% 7%
Household 4% 5% 5%
performance
Operational
Other 24% 20% 19%
Environmental compliance
Significant unplanned releases1 3 0 1
Security management
Sites included in Syngenta Security 360 Program2 117 105 70
Product Security cases3 677
data
Performance
1 Releases that escaped beyond the site boundary and could cause either environmental impact and/or concern from neighbors and regulators. The three unplanned
releases in 2015 were air emissions; no actual off-site incident occurred or was reported
2 Policy on security management reporting was revised in 2014: 2015 and 2014 include all evaluated sites. 2013 includes only sites in medium and high-risk countries
3 New KPI introduced in 2015 to capture counterfeiting of our products
information
Corporate
62 Syngenta Annual Review 2015
Business integrity
2015 2014 2013
Corporate conduct
Compliance cases reported1 196 96 110
overview
Strategic
To the Board of Directors, Syngenta AG, Responsibilities and Methodology Summary of work performed
Basel (Syngenta) The Board of Directors of Syngenta AG is Our assurance procedures included the
We have been engaged to perform responsible for both the subject matter and following work but not limited to:
assurance procedures to provide assurance the reporting criteria as well as for the entire Evaluation of the application of group
on the Non-financial performance summary reporting process of the selected information guidelines;
of Syngenta included in the Annual Review in accordance with the criteria. This
responsibility includes the design, Visits of six different sites in Argentina and
2015 (Report). Brazil selected based on quantitative and
implementation and maintenance of related
internal control relevant to this reporting qualitative criteria;
Scope and Subject matter
Development
Research and
process that is free from material Testing of the performance indicators on a
Our assurance engagement and the related sample basis for evidence supporting the
misstatement, whether due to fraud or error.
levels of assurance focused on the data and Non-financial performance summary
information disclosed in the aggregated non- Our responsibility is to perform a limited relative to completeness, accuracy,
financial reporting of Syngenta for the orreasonable assurance engagement to adequacy and consistency;
financial year ended December 31, 2015: express an opinion on positions in the related
Non-financial performance summary on Review of the documentation supporting
Reasonable Assurance relevant data on a sample basis, including
The following subject matter contained pages 57 to 62. We planned and conducted
our engagement in accordance with management and reporting structures
intheReport is within the scope of the anddocumentation;
reasonable assurance: International Standard on Assurance
Reviewing the management and reporting
in focus
Crops
Engagements (ISAE 3000) (revised)
The application of the Syngenta reporting processes. Assessing the consolidation
Assurance engagements other than audits
guidelines published on The Good Growth process of data at the Group level.
orreviews of historical financial information.
Plan Progress Data website in the non-
That standard requires that we comply with
financial reporting; and We have neither carried out any work in
ethical requirements and plan and perform
the internal reporting system and respect of projections and targets nor such
our procedures to obtain reasonable or
procedures to collect and aggregate the outside of the agreed scope.
limited assurance whether the related
non-financial data for the six Good Growth Non-financial performance summary We believe that the evidence we have obtained
Plan commitments on page 56, excl. the wereprepared, in all material aspects, is sufficient and appropriate to provide a basis
materiality matrix; and inaccordance with the Reporting Criteria. for our assurance conclusions.
the data and information in the Non-
Growth Plan
The Good
A limited assurance engagement under ISAE Reasonable assurance conclusion
financial performance summary, in all
3000 (revised) is substantially less in scope
material aspects, on pages 57 and 58 In our opinion,
than a reasonable assurance engagement
(excl. people indicators) of the Report.
inrelation to both the risk assessment The Good Growth Plan guidelines as
Limited Assurance procedures, including an understanding published on The Good Growth Plan
The related Non-financial performance ofinternal control, and the procedures Progress Data website are being applied,
summary disclosed, in all material aspects, performed in response to the assessed risks. inall material aspects; and
on pages 58 (limited to people indicators) Consequently, the nature, timing and extent The internal reporting systems to collect
to62 of the Report is within the scope of of procedures for gathering sufficient and aggregate The Good Growth Plan data
thelimited assurance. appropriate evidence are deliberately limited are functioning as designed and provide
performance
Operational
relative to a reasonable assurance anappropriate basis for this reporting; and
Our assurance procedures do not cover engagement and therefore less assurance
theindicators on payments to suppliers, isobtained with a limited assurance The data and information disclosed in the
employee wages and benefits, payments to engagement than for a reasonable Non-financial performance summary in the
governments and providers of capital, and assuranceengagement. Report on pages 57 and 58 (excl. people
capital expenditure presented in the related indicators) give a fair picture of Syngentas
Non-financial performance summary on The procedures selected depend on the non-financial performance.
page 62 of the Report. assurance practitioners judgment.
Limited assurance conclusion
Criteria Our Independence and Quality Based on our work performed on the related
The reporting criteria used by Syngenta Control Non-financial performance summary nothing
data
Performance
aredescribed and disclosed on The Good We have complied with the independence has come to our attention causing us to
Growth Plan Progress Data website and in and other ethical requirements of the Code believe that disclosed data and information
the internal non-financial reporting guidelines. ofEthics for Professional Accountants issued inthe related Non-financial performance
These define those procedures based on the by the International Ethics Standards Board summary in the Report on pages 58 (limited
related sections of the Standard Disclosure for Accountants, which is founded on to the people indicators) to 62 does not give
of the Sustainability Reporting Guidelines G4 fundamental principles of integrity, objectivity, afair picture of Syngentas non-financial
published in 2013 by the Global Reporting professional competence and due care, performance, in all material aspects, in
Initiative (GRI), by which the non-financial confidentiality and professional behavior. accordance with the reporting criteria.
performance data are internally gathered,
Our firm applies International Standard on
collated and aggregated.
Quality Control 1 and accordingly maintains
information
Corporate
broad international business and scientific backgrounds. Its members Born: 1956
Nationality: Belgian
bringdiversity in expertise and perspective to the leadership of a complex, Initial appointment: 2012
highly-regulated, global business.
2 Jrg Witmer
Vice Chairman, non-executive Director.
1 2
Chairman of the Compensation Committee,
member of the Chairmans & Governance
Committee and the Nomination Committee
Born: 1948
Nationality: Swiss
Initial appointment: 2006
3 Vinita Bali
Non-executive Director. Member of the
Corporate Responsibility Committee
Born: 1955
3 4 Nationality: Indian
Initial appointment: 2012
4 Stefan Borgas
Non-executive Director. Member of the
Audit Committee
Born: 1964
Nationality: German
Initial appointment: 2009
5 Gunnar Brock
Non-executive Director. Chairman of the
5 6 Audit Committee and member of the
Nomination Committee
Born: 1950
Nationality: Swedish
Initial appointment: 2012
6 Eleni Gabre-Madhin
Non-executive Director. Member of the
Corporate Responsibility Committee
Born: 1964
Nationality: Swiss
Initial appointment: 2013
7 8
7 David Lawrence
Non-executive Director. Member of the
Audit Committee and Chairman of the
Science and Technology Advisory Board
Born: 1949
Nationality: British
Initial appointment: 2009
8 Eveline Saupper
Non-executive Director. Member of the
Compensation Committee
9 Born: 1958
Nationality: Swiss
Initial appointment: 2013
9 Jacques Vincent
Non-executive Director. Member of the
Compensation Committee
Born: 1946
Nationality: French
Initial appointment: 2005
Corporate information Syngenta Annual Review 2015 65
overview
Strategic
Chief Executive Officer ad interim
Chief Financial Officer
at December 31, 2015
Born: 1957
Nationality: British
Under the leadership of the Chief Executive Officer, the Executive Appointed: 2007
Committee is responsible for the active leadership and the operative
2 Caroline Luscombe
management of the Company.
Head Human Resources
Born: 1960
Nationality: British
Development
Research and
Appointed: 2012
1 2
3 Christoph Mder
Head Legal & Taxes and Company Secretary
Born: 1959
Nationality: Swiss
Appointed: 2000
4 Patricia Malarkey
Head Research & Development
in focus
Crops
Born: 1965
Nationality: British/American
Appointed: 2014
3 4
5 Jonathan Parr
Chief Operating Officer
Born: 1961
Nationality: British
Appointed: 2015
6 Mark Peacock
Growth Plan
The Good
Head Global Operations
Born: 1961
Nationality: British
Appointed: 2007
5 6
7 Davor Pisk
Chief Operating Officer
Born: 1958
Nationality: British
performance
Operational
Appointed: 2008
8 Jonathan Seabrook
Head Corporate Affairs
Born: 1969
Nationality: British
7 8 Appointed: 2013
data
Performance
information
Corporate
Shareholder information
Syngenta shares are listed on the Syngenta share price performance January 1, 2015 December 31, 2015
SIXSwissExchange and on the (Indexed to zero at closing price on December 31, 2014)
Dec 31, 2015
New York Stock Exchange, where % CHF392.30
theshares aretraded asADS 35
High: CHF430.80 *
(American Depositary Shares).1 30
Low: CHF281.60
Trading symbols 25
New York 20
SIX Swiss Stock
Exchange Exchange 15
Shares SYNN SYT 10
5
Shares in issue
0
At December 31, 2015 Number ofshares
-15
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Share price and market capitalization2 Syngenta Eurotop 300 SMI * Closing high/low during the year
At December 31, 2015
Share price (CHF) 392.30 Syngenta ADS price performance January 1, 2015 December 31, 2015
Share price ($) (ADS) 78.73 (Indexed to zero at closing price on December 31, 2014)
Dec 31, 2015
% $ 78.73
Market capitalization (CHF million) 36,007 50
High: $93.61 *
Market capitalization ($million) 36,283 45 Low: $61.92
40
35
Dividend history
30
CHF
25
2011 8.00 20
2012 9.50 15
10
2013 10.00
5
2014 11.00 0
20153 11.00 -5
-10
1 1 share = 5 ADS -15
2 For the purposes of calculating market capitalization Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
the number of shares stood at 91.8 million
Syngenta ADS S&P 500 Dow Jones * Closing high/low during the year
3 To be submitted to shareholders for approval
at the Annual General Meeting on April 26, 2016
Reporting dates
First quarter trading statement April 20, 2016
Annual General Meeting April 26, 2016
Half-year results July 22, 2016
Third quarter trading statement October 25, 2016
overview
Strategic
Syngenta share price performance January 1, 2011 December 31, 2015
Development
Research and
(Indexed to zero at closing price on December 31, 2010)
Dec 31, 2015
% CHF392.30
CHF275.00 CHF366.60 CHF355.20 CHF320.00
60
50
40
30
20
in focus
Crops
10
-10
-20
-30
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
2011 2012 2013 2014 2015
Syngenta Eurotop 300 SMI
Growth Plan
The Good
Syngenta ADS price performance January 1, 2011 December 31, 2015
(Indexed to zero at closing price on December 31, 2010)
Dec 31, 2015
% $58.94 $80.80 $79.94 $64.24 $78.73
75
60
45
performance
Operational
30
15
-15
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
2011 2012 2013 2014 2015
data
Performance
Syngenta ADS S&P 500 Dow Jones
Syngenta ADS
FTSE EU Chemicals
Syngenta share
S&P US Chemicals
information
Corporate
NASDAQ
S&P 500
Eurotop 300
SMI