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’06<br />
Pledge Report<br />
The Sum of<br />
Our Commitments
The <strong>Monsanto</strong> Pledge<br />
INTEGRITY<br />
DIALOGUE<br />
TRANSPARENCY<br />
SHARING<br />
BENEFITS<br />
RESPECT<br />
ACT AS OWNERS<br />
TO ACHIEVE RESULTS<br />
CREATE A GREAT<br />
PLACE TO WORK<br />
ABOUT THE COVER: Sales representative José Aurélio (right)<br />
speaks with soybean grower Almir José Rebelo de Oliveira<br />
at his farm in Tupanciretã, Rio Grande do Sul, Brazil.<br />
Integrity is the foundation for all that we do. Integrity includes honesty, decency,<br />
consistency, and courage. Building on those values, we are committed to:<br />
We will listen carefully to diverse points of view and engage in thoughtful dialogue.<br />
We will broaden our understanding of issues in order to better address the needs<br />
and concerns of society and each other.<br />
We will ensure that information is available, accessible, and understandable.<br />
We will share knowledge and technology to advance scientific understanding, to<br />
improve agriculture and the environment, to improve crops, and to help farmers<br />
in developing countries.<br />
We will use sound and innovative science and thoughtful and effective stewardship to<br />
deliver high-quality products that are beneficial to our customers and to the environment.<br />
We will respect the religious, cultural, and ethical concerns of people throughout the<br />
world. The safety of our employees, the communities where we operate, our customers,<br />
consumers, and the environment will be our highest priority.<br />
We will create clarity of direction, roles, and accountability; build strong relationships<br />
with our customers and external partners; make wise decisions; steward our company<br />
resources; and take responsibility for achieving agreed-upon results.<br />
We will ensure diversity of people and thought; foster innovation, creativity and<br />
learning; practice inclusive teamwork; and reward and recognize our people.
FACING GLOBAL<br />
CHALLENGES<br />
An exploration of tools<br />
to meet the global<br />
challenges of food<br />
self-sufficiency, energy<br />
demand, a healthy<br />
environment, and<br />
healthier foods.<br />
PAGE 3<br />
The Sum of Our Commitments<br />
1 + 2 + 3<br />
CHALLENGES VALUE ACTION<br />
The principles expressed in the <strong>Monsanto</strong> Pledge<br />
are enduring.They guide our efforts to help society face<br />
global challenges, to deliver value to our customers and society,<br />
and to demonstrate integrity as we take action.<br />
This is the sum of our commitments.<br />
DELIVERING<br />
VALUE<br />
An analysis of how<br />
our processes and<br />
products deliver societal,<br />
environmental, and<br />
economic value.<br />
PAGE 21<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 1<br />
TAKING ACTION<br />
A look at the ways our<br />
employees take action,<br />
internally and externally,<br />
demonstrating their<br />
commitment to<br />
our Pledge.<br />
PAGE 33
2 THE SUM OF OUR COMMITMENTS<br />
Letter to Stakeholders<br />
November 2005 marked the fifth anniversary of<br />
the announcement of our <strong>Monsanto</strong> Pledge. The<br />
Pledge evolved from long-standing commitments<br />
to safety, environmental protection, customer<br />
service, first-class research, and product stewardship<br />
that had served as hallmarks of our work for<br />
many years. And it addressed what stakeholders,<br />
including our own people, said they wanted to<br />
see in the way we operated as an agricultural technology<br />
leader. We listened, we took their counsel<br />
seriously, and we continue to build our culture on<br />
those values. After five years, the Pledge is helping<br />
us to convert values to actions and results, and to<br />
make clear who we are and what we champion.<br />
Over these five years, we’ve grown as a company,<br />
not only in numbers of products and acres of<br />
biotech crops in production, but also in ways that<br />
put our values to work every day. We continue to<br />
squeeze the waste out of our manufacturing operations,<br />
making our processes more efficient and<br />
cleaner. We’ve brought better seeds and new<br />
choices to farmers in developed and developing<br />
countries — to help them grow more food, spray<br />
fewer pesticides, and improve their economic<br />
opportunities. We’ve responded to climatic disasters<br />
in our global communities, from tsunamis and<br />
hurricanes to earthquakes, through contributions<br />
of people, products, and money.<br />
But it is not only the big actions that define us.<br />
It is also the thousands of daily decisions our<br />
employees make as they do their jobs: how they<br />
involve people in dialogue on issues that may<br />
affect them, how they seek out opportunities<br />
“After five years, the Pledge is helping us to<br />
convert values to actions and results, and to make<br />
clear who we are and what we champion.”<br />
to share information and expertise where they<br />
think they can help. Simply put, it is about how we<br />
apply our values to our work. This report features<br />
many examples of the Pledge in practice.<br />
Obviously, we still have challenges. They include<br />
how to secure our intellectual property in parts<br />
of the world where the legal protection is not yet<br />
mature. We also want to work with development<br />
organizations to share our seeds and expertise<br />
in ways that result in better food security and<br />
economic opportunity for those that need them<br />
most, and to develop them in a parallel timeframe<br />
with developed countries. Currently, the traditional<br />
model of sequential product development results<br />
in decade-long delays in places like Africa.<br />
It is critical for us to do these things well over<br />
the next five years and beyond. We intend to<br />
do them with integrity, applying our values and<br />
listening closely to our advisory councils and<br />
our many stakeholders around the world. In<br />
many ways, we’ve only just begun the work<br />
of the Pledge.<br />
Sincerely,<br />
HUGH GRANT<br />
Chairman, President, and Chief Executive Officer
1<br />
Corn farmer Jesus Gavino in Lubao,<br />
Pampanga, the Philippines.<br />
Facing Global<br />
Challenges
4 FACING GLOBAL CHALLENGES<br />
Facing global challenges is essential<br />
if humanity is to survive and improve<br />
the quality of people’s lives around<br />
the world. The global population of<br />
6.5 billion is expected to grow to 9 billion by 2050. 1<br />
1<br />
This unprecedented growth places increasing<br />
demands on the earth.<br />
Despite advances over the past century, many people cannot earn enough money<br />
to purchase food, and they do not have the resources to grow enough food to feed<br />
their families. Energy demand is increasing while the world’s supply of petroleum<br />
is becoming uncertain. The environment is struggling to compensate for the toll<br />
that human consumption takes on raw<br />
materials, energy, and agriculture. Finally,<br />
vast numbers of people have grown reliant<br />
on easily accessible but nutritionally<br />
poor foods.<br />
<strong>Monsanto</strong> is just one organization that is<br />
helping the world face the challenges of<br />
increasing food self-sufficiency, meeting<br />
energy demand, improving environmental<br />
health, and creating healthier foods.<br />
GLOBAL CHALLENGE FACTS<br />
800 MILLION PEOPLE chronically undernourished in the<br />
developing world 2<br />
71% EXPECTED INCREASE in energy use by 2030 3<br />
40% DECREASE in sea ice thickness observed<br />
since 1970 4<br />
29% OF GLOBAL DEATHS were attributed<br />
to heart disease in 2003 5
Poverty Alleviation/<br />
Food Self-sufficiency<br />
Hunger, poverty and food insecurity have been linked to low<br />
agricultural productivity of subsistence farmers around the world.<br />
We, at <strong>Monsanto</strong>, are in a unique position to help growers increase<br />
food production with modern agricultural tools.We are working to<br />
deliver the benefits of these tools to Africa, a continent that faces<br />
many challenges but which has great potential to reduce poverty<br />
and become self-sufficient in agriculture.<br />
Hope Lives on an African Farm<br />
Millions of subsistence farmers in sub-Saharan<br />
Africa invest their time and labor tilling their small<br />
fields, planting poor-quality seeds, and hand-hoeing<br />
weeds in hope of harvesting enough food to survive.<br />
Drought and lack of good agricultural products<br />
often thwart their efforts. The average maize yield<br />
for a farmer in sub-Saharan Africa is one tenth of<br />
that realized by farmers in the United States and<br />
Europe. Low yields and small farms result in a<br />
“hunger season” of several months before each<br />
new harvest.<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 5<br />
The cost for food aid to feed a family<br />
of 6 for one year in Malawi is $400. 6<br />
The cost for quality hybrid seed and<br />
fertilizer for a family of 6 to feed itself<br />
for one year in Malawi is $40. 6<br />
$ 400 $ 40<br />
food<br />
aid<br />
vs.<br />
Comparison of corn ears from a <strong>Monsanto</strong> hybrid<br />
(left) and a traditional open-pollinated variety in<br />
Malawi, March 1, <strong>2006</strong>.<br />
With nothing to invest and no surplus to sell,<br />
farmers are trapped in a poverty cycle. They lack<br />
the means to purchase high-quality inputs that<br />
could make their farms more productive. Up to<br />
70 percent of the poor people in Africa are<br />
farmers, so low agricultural productivity is a<br />
major contributor to poverty on the continent. 7<br />
Agriculture is a wealth-creating investment that can<br />
help break the poverty trap. Last year the <strong>Monsanto</strong><br />
Fund donated $1 million to the World Food Program<br />
for drought-relief food aid in Malawi, a small inland<br />
country in sub-Saharan Africa. The actual cost to<br />
purchase and deliver a ton of maize to feed a<br />
farm<br />
inputs
6 FACING GLOBAL CHALLENGES<br />
family of six for a year was $400. 6 This year<br />
<strong>Monsanto</strong> donated quality hybrid maize seed to<br />
farmers in Malawi. The cost to grow a ton of maize<br />
was $40: $7.50 for quality seed and $32.50 for<br />
fertilizer. 6 This comparison — spending $400 versus<br />
spending $40 — builds a compelling case for<br />
investment in agricultural productivity.<br />
“Helping farmers grow better crops feeds<br />
more than just their stomachs. It feeds their<br />
dignity, their sense of pride and their hope<br />
for the future,” said Robert B. Horsch, <strong>Monsanto</strong><br />
Vice President, International Partnerships. “As a<br />
leading provider of agricultural tools, we at <strong>Monsanto</strong><br />
have an opportunity to help people help themselves<br />
to make an impact on hunger and poverty in Africa.”<br />
70 %<br />
Income spent on food: 70 percent<br />
in developing countries versus<br />
10 percent average in the United<br />
States. 8 Increased agricultural<br />
productivity improves quality-of-life,<br />
education, and community development.<br />
300 million people<br />
in sub-Saharan Africa are surviving on<br />
less than one dollar a day. 9<br />
<strong>Monsanto</strong>’s Vision<br />
Our vision is to enable access to improved<br />
agricultural tools to farmers who cannot currently<br />
obtain them through commercial channels. Some<br />
of these tools already exist — such as quality<br />
conventional hybrid maize seed and seeds with<br />
biotechnology traits like insect resistance. These<br />
tools can have a real, immediate impact, but many<br />
farmers in Africa cannot access them due to lack<br />
of information and the necessary regulatory and<br />
commercial infrastructure.<br />
An important future agricultural tool currently<br />
under development is drought-tolerant (DT)<br />
maize. Drought is a leading cause of hunger in<br />
Africa. <strong>Monsanto</strong>’s development of DT maize will<br />
generate significant benefits for growers, including<br />
smallholders in developing countries who have the<br />
choice to buy our products. Given our history of<br />
sharing and the food security potential of this technology,<br />
we believe that it is critical to provide this<br />
technology to farmers in sub-Saharan Africa who<br />
cannot access it through commercial markets.<br />
We cannot reach those farmers even on a humanitarian<br />
basis, however, without major changes in<br />
the conditions and policies in sub-Saharan Africa.<br />
Unless steps are taken now to establish functional<br />
regulatory capacity and seed delivery systems,<br />
it is unlikely that these farmers will be able to<br />
benefit from DT technology without another<br />
decade or more of sequential efforts after the<br />
U.S. commercial launch.<br />
<strong>Monsanto</strong> initiated a broad stakeholder dialogue<br />
to gain guidance about how to overcome these<br />
challenges. We consulted many organizations<br />
involved in development and poverty alleviation<br />
including non-governmental groups, research<br />
institutes, foundations and private companies. We<br />
also consulted extensively with our Biotechnology<br />
Advisory Council (see page 40).<br />
In 2005 we joined the Clinton Global Initiative led<br />
by former U.S. President Bill Clinton and laid out a<br />
plan for a new public-private partnership for African<br />
agricultural development to reduce hunger and
Viewpoint: Chronic Food Insecurity<br />
The Millennium Villages Project in Malawi<br />
Rebbie Harawa, Millennium Development Village Coordinator, Malawi<br />
Malawi is among the most food-insecure countries in the world. Maize accounts<br />
for 72 percent of the calories in the daily diet in Malawi. The country has had<br />
increasing difficulty in growing enough maize. Production levels are not keeping<br />
pace with population, which doubled from 6 million to 12 million between 1977<br />
and 2000. The intense population pressure has led to reduced farm sizes. The<br />
average smallholder currently farms less than 0.8 hectare. Poor-quality seed and lack of modern inputs<br />
such as chemical fertilizers, which are unaffordable for many farmers, compound low maize productivity.<br />
In response to the chronic food insecurity, in early 2005, professor Jeffrey Sachs, and advisor to United<br />
Nations Secretary-General Kofi Annan and leader of the Earth Institute at Columbia University, came to<br />
Malawi to start the Millennium Villages Project. Together with the Malawi government, the United Nations<br />
and the Earth Institute established Millennium Villages in the rural communities of Zomba, Dedza, and<br />
Mzimba. Their objective was to eliminate hunger and malnutrition by increasing the production, access,<br />
and utilization of nutritious foods. The project provided an agricultural input package containing 100 kg<br />
of chemical fertilizer and 10 kg of hybrid maize, enough seed to cover 0.5 hectare of land. The seed was<br />
a generous donation from <strong>Monsanto</strong> Company. A total of 12,000 households, serving a population of<br />
more than 60,000, benefited from these inputs.<br />
Extension staff from the Sasakawa-Global 2000 and the Ministry of Agriculture provided technical assistance<br />
to the farmers during the growing season. The result was a bumper harvest. One local farmer<br />
commented, “Since I was born in this village, I have never seen a good maize crop like the one<br />
I have seen this year.” The project team measured the average maize yield in the Millennium Villages<br />
at 5.5 tons per hectare. That is a 500 percent increase over the average yield of 0.8 tons per hectare<br />
which farmers get when they cultivate the local (open-pollinated) maize without chemical fertilizer. Most<br />
of the Millennium Villages have surpluses. The project is currently working on marketing, to ensure that<br />
this surplus maize fetches a good price for the farmers.<br />
The high yields that have been observed in the Millennium Villages<br />
do not come as a surprise. In recent years, it has been established that<br />
Malawi’s maize production needs modern farm inputs. The country<br />
has had 1.2 million to 1.5 million hectares planted with maize for<br />
the past six years: 58.21 percent in local varieties, 8.94 percent in<br />
composites, and 32.85 percent in hybrids. However, hybrid production<br />
accounts for more than half (54.58 percent) of the total maize<br />
output. We need to support smallholder maize production with<br />
modern farm inputs, especially in initial stages, so that smallholder<br />
farmers can become food-secure.<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 7
8 FACING GLOBAL CHALLENGES<br />
Donations Chart<br />
AUG. 2005<br />
$ 1.0M USD<br />
The <strong>Monsanto</strong> Fund donated<br />
cash to the World Food Program<br />
for emergency food aid to the<br />
poor and drought-affected<br />
population in Malawi.<br />
DEC. 2005<br />
$ 840,000 USD<br />
We gave 700 metric tons of<br />
quality hybrid maize seed to<br />
the Malawian government and<br />
several NGOs for distribution.<br />
It was distributed to 140,000<br />
farmers. The expected yield<br />
over 5 metric tons/hectare<br />
— enough to feed 1 million<br />
people for 1 year.<br />
poverty and build capacity for sustainable<br />
economic growth. The plan has three phases:<br />
PHASE I: Improved access to quality hybrid maize<br />
seeds to help farmers in Africa achieve current<br />
standards of ag productivity and sustainability.<br />
The United Nations Millennium Project task force<br />
on hunger recommended access to quality seeds<br />
as a key area for improvement.<br />
PHASE II: Improved access to existing biotechnology<br />
traits, such as insect protected corn and<br />
cotton, in which the plants protect themselves<br />
from the pests. These products have been used<br />
by millions of farmers around the world for over<br />
a decade and have brought significant benefits<br />
to smallholders farmers in Asia and South Africa.<br />
820 metric tons<br />
of seed, worth $980,000, were donated to<br />
resource-poor farmers in Malawi in 2005.<br />
DEC. 2005<br />
$ 140,000 USD<br />
We provided 120 metric tons<br />
of seed to the Millennium<br />
Development Villages. It was<br />
distributed to 12,000 farmers.<br />
PHASE III: Help sub-Saharan countries prepare to<br />
be able to use drought tolerance technology — in<br />
parallel with the U.S. We believe that drought<br />
tolerance will have a particularly important role<br />
to play in food security.<br />
Within one year, the project has matured from an<br />
idea that generates great enthusiasm to a multitiered<br />
plan that generates action. “Our vision is to<br />
make available quality drought-tolerant white maize<br />
seed without royalty to smallholder farmers in Kenya<br />
and Malawi within three years of the U.S. launch.<br />
Our three-part plan and multiple partners will help<br />
lay the foundation for DT maize and enable the<br />
policy changes necessary to make this vision a<br />
reality,” said Natalie DiNicola, <strong>Monsanto</strong> director<br />
of International Partnerships.<br />
It All Starts With Better Seed<br />
<strong>2006</strong>-2010<br />
Up to $ 1.5M USD<br />
<strong>Monsanto</strong> pledges 240 tons<br />
of quality hybrid maize seed<br />
to fulfill the needs of 24,000<br />
smallholder households each<br />
year for four more years.<br />
The first step is to deliver high quality hybrid maize<br />
seeds to resource-poor farmers. In December 2005,<br />
<strong>Monsanto</strong> donated 700 metric tons of conventional<br />
quality hybrid maize seed to 140,000 resource-poor<br />
farmers in Malawi in response to the severe drought.<br />
The Malawian government provided the fertilizer.<br />
Distribution was handled by the government and<br />
several nongovernmental organizations. The<br />
harvest exceeded five tons per hectare, significantly<br />
greater than the three-quarters to one ton
typically harvested by those farmers. Collectively,<br />
the harvest from the quality hybrid maize seed<br />
yielded enough to feed a million people for<br />
one year. 10<br />
In addition, <strong>Monsanto</strong> became a founding member<br />
of the Millennium Promise, a nonprofit organization<br />
created by Jeffrey Sachs, Ph.D., special advisor<br />
to U.N. Secretary General Kofi Annan, to improve<br />
the lives of the poorest farmers in about 100<br />
“Millennium Villages.”<br />
We donated 120 metric tons of seed to the<br />
Millennium Villages in Malawi for immediate planting<br />
by more than 12,000 farmers. The Millennium<br />
Village program secured funding for fertilizer and<br />
provided training in best farming practices.<br />
Going forward, <strong>Monsanto</strong> has pledged 240 tons<br />
of quality hybrid maize seed to fulfill the needs of<br />
24,000 smallholder households, or 120,000 people,<br />
each year for four more years. The total donation<br />
is valued at $1.5 million.<br />
Helping Growers Worldwide<br />
Drought-tolerant Crop Progress<br />
Growers in both developed<br />
and developing countries<br />
eagerly anticipate droughttolerant<br />
crops. These crops<br />
will remove some of the uncertainty<br />
of farming by reducing<br />
drought-induced yield losses in<br />
years when moisture is limited.<br />
The result will be greater yield<br />
consistency with a higher<br />
average yield under waterdeficit<br />
conditions.<br />
We are pursuing multiple<br />
approaches to drought tolerance.<br />
These include enabling plants to<br />
continue to photosynthesize the<br />
Beyond Hybrids<br />
sun’s energy and convert it<br />
to food even under low soil<br />
moisture, when nontolerant<br />
plants would be shutting down.<br />
We are in the fourth year of<br />
field-testing in corn, and we<br />
are also developing drought<br />
tolerance for soy and cotton.<br />
“The trait is being introduced<br />
into diverse germplasm and<br />
undergoing multiyear testing,<br />
characterization, and quality<br />
control,” said John Headrick,<br />
<strong>Monsanto</strong> development team<br />
lead for drought-tolerant corn.<br />
“This testing, together with<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 9<br />
For Africa to keep pace with improved-trait crops in<br />
the next decade, countries need to build biosafety<br />
laws, research capacity to authorize field trials,<br />
and training for farmers in best management and<br />
stewardship practices.<br />
Field trials are currently taking place in a number<br />
of African nations. “There is still some fear of the<br />
unknown where misinformation about biotech crops<br />
exists,” said Kinyua M’Mbijjewe, <strong>Monsanto</strong>’s African<br />
public and government affairs lead. “But the more<br />
farmers see what the tools of modern agriculture<br />
can do for them, their families, their communities,<br />
and their country, the more they want them.”<br />
<strong>Monsanto</strong> is just one player among many whose<br />
contributions and talents will be needed. But as<br />
we create synergy out of the pieces that each party<br />
brings to the table, we help Africa toward its goal<br />
of food self-sufficiency and poverty alleviation.<br />
With Gene Without Gene<br />
submissions and approval from<br />
regulatory agencies, is necessary<br />
before commercialization.”<br />
Field trials so far have taken place<br />
only in the United States. When<br />
national biosafety laws allow it, we<br />
will begin working with African<br />
countries to develop droughttolerant<br />
traits in maize varieties<br />
that are suited for maize-growing<br />
regions of the continent.
10 FACING GLOBAL CHALLENGES<br />
Energy Demand<br />
Demand for energy is increasing globally.<br />
Mechanized equipment is fast replacing<br />
hand labor in the developing world, and<br />
everywhere people are becoming more<br />
dependent on electricity and powered<br />
transportation. From 2002 to 2004 —<br />
in just two years’ time — world demand<br />
for petroleum increased 5.3 percent. 11<br />
In the United States, it is estimated<br />
that demand for truck transit will<br />
increase by 56 percent and demand<br />
for rail transit will increase by<br />
17 percent during the next<br />
10 years. 12 For these reasons,<br />
many are seeking ways to<br />
maintain plentiful energy.<br />
37 %<br />
U.S. transport fuel<br />
could be provided<br />
by biofuels. 11<br />
40 %<br />
of Brazil’s non-diesel<br />
fuel is ethanol. 11
Renewable Fuels Improve Environment<br />
and Energy Sufficiency<br />
As our lives become more reliant on energy, leaders<br />
of many countries are beginning to advocate policies<br />
that encourage energy conservation and<br />
promote energy security through increased use<br />
of renewable sources. Renewable fuels, such as<br />
ethanol made from plant matter and biodiesel<br />
made from vegetable oils, capture the daily energy<br />
from the sun and convert it to forms we can use.<br />
In the United States, a desire to reduce the nation’s<br />
dependence on foreign oil led the Congress in<br />
2005 to legislate a renewable fuels standard, which<br />
requires 7.5 billion gallons of renewable fuels by<br />
2012. 13 In Brazil, a long-term effort to develop a<br />
sugarcane-based ethanol industry is bearing<br />
results. The country has saved an estimated<br />
$121.3 billion in imported petroleum costs and<br />
related debt since 1976 11 and in <strong>2006</strong>, Brazil is<br />
reported to have achieved energy independence. 14<br />
Ethanol is a naturally occurring alcohol created<br />
during the fermentation of organic matter. It has<br />
been used as a fuel source for more than 100<br />
years. 15 Only recently have nations considered<br />
it a potential contributor to their energy supplies,<br />
however. The commercial ethanol industry is<br />
expected to continue to grow to more than<br />
10 billion gallons by 2015. 12 Most U.S. ethanol<br />
research has involved corn. Ethanol accounts<br />
for 10 percent of all U.S. corn use today; by<br />
2015, it is expected to account for 30 percent<br />
of all corn use. 12<br />
In addition to its benefits as a renewable source<br />
of energy, ethanol provides environmental benefits<br />
in that the corn grown to produce it often utilizes<br />
conservation tillage methods. This reduces the<br />
atmospheric levels of greenhouse gases through<br />
carbon sequestration. In fact, corn ethanol has the<br />
potential to reduce fuel-related greenhouse gasses<br />
by 13 percent. 11,16<br />
Ethanol is just one part of a sound energy policy.<br />
Combined with sensible conservation efforts and<br />
other renewable and alternative forms of energy,<br />
ethanol can help nations reduce their dependence<br />
on nonrenewable petroleum energy and mitigate<br />
the effects of carbon dioxide emissions.<br />
Ethanol is widely available in blended fuels as E10,<br />
a blend of 90 percent gasoline and 10 percent<br />
ethanol. Ethanol serves as an oxygenate in this<br />
formulation, helping gasoline burn more cleanly<br />
and reducing tailpipe emissions. E10 can be used<br />
in all standard gasoline engines. E85, a blend of<br />
85 percent ethanol and 15 percent gasoline, is<br />
becoming more widely available in the United<br />
States too. E85 can be used in any vehicle<br />
designated as “flex-fuel” capable. More information<br />
on E85 and flex-fuel vehicles is available<br />
at www.e85fuel.com.<br />
GROWTH IN U.S. CORN YIELD, 1970-2015<br />
(bushels per harvested acre)<br />
Actual 1973-2004 Trend 1990-2004 Trend<br />
Corn yield is one of the largest contributors<br />
to cost efficient corn-based ethanol output.<br />
225<br />
175<br />
125<br />
75<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 11<br />
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015<br />
Source: Bill Hudson, ProExporter Network<br />
Our Technology Improves Ethanol<br />
as a Source of Renewable Energy<br />
At <strong>Monsanto</strong>, we provide solutions that improve the<br />
productivity of the ethanol value chain. We provide<br />
farmers with corn seed genetics that have high yield<br />
potential, and we offer insect and weed traits to<br />
protect this potential. Our products for starch-based<br />
ethanol production provide benefits to farmers,<br />
processors, and fuel distributors. Ultimately, these<br />
benefits will help bring consumers a renewable<br />
fuel that also has a low environmental impact. 16<br />
Early use of ethanol as fuel raised questions<br />
about the efficiency of the technology as a source<br />
173<br />
164
12 FACING GLOBAL CHALLENGES<br />
ETHANOL YIELD IMPROVEMENT THROUGH HIGH FERMENTABLE CORN<br />
#2 Yellow Corn Processor Preferred<br />
Comparison of an ethanol-processing plant using conventional corn (left) and one using Processor Preferred<br />
High-Fermentable Corn (right). The higher starch content of Processor Preferred High-Fermentable Corn allows<br />
processors to produce more ethanol from a bushel of corn.<br />
Processor Preferred Hybrids<br />
Number of Samples<br />
1,000<br />
800<br />
600<br />
400<br />
200<br />
45.00 46.00 47.20 48.20 49.20 50.20 51.20 52.20 53.20 54.20 55.20<br />
Predicted Ethanol Yield (nit units)<br />
Source: <strong>Monsanto</strong> Company<br />
of renewable energy. However, continuous<br />
improvements to crop yield and starch processing<br />
have lessened this concern over the past few<br />
years. 11,16 Increasing farm yield improves the efficiency<br />
of grain-based ethanol production by<br />
reducing the input costs required to produce a<br />
bushel of corn. Average corn yield has increased<br />
steadily, and <strong>Monsanto</strong> has contributed to this<br />
increase through the development of corn genetics<br />
optimized for yield and through the development<br />
of biotech traits that reduce crop exposure to pests<br />
(see table, page 11).<br />
In addition to improving grain yield, we have<br />
developed Processor Preferred High-Fermentable<br />
Corn: corn hybrids that improve refinery yield by<br />
producing 2 to 4 percent more ethanol per bushel<br />
of corn than conventional feed corn does. High<br />
farm yields plus the higher refinery yields improve<br />
our ability to produce ethanol from corn grain.<br />
To increase the efficiency and availability of ethanol,<br />
we support a network of more than 40 U.S. ethanol<br />
plants that promote Processor Preferred corn<br />
hybrids. We have also developed corn grain<br />
calibration software for ethanol plants to improve<br />
their predictions of ethanol yield.<br />
Ethanol production results in a byproduct called<br />
distillers’ dried grains (DDGs). DDGs are used<br />
as livestock feed in limited amounts for certain<br />
150<br />
120<br />
animals. <strong>Monsanto</strong> and Cargill, through a joint<br />
venture called Renessen, are developing<br />
technology to improve the quality of DDGs. This<br />
will enable the DDGs to be used in higher amounts<br />
in animals such as swine and poultry. This enables<br />
the corn processed for ethanol to provide additional<br />
feed and ultimately food benefits.<br />
Advancements in the corn ethanol processing<br />
system help improve ethanol’s fuel efficiency<br />
and bring value to farmers, processors, energy<br />
consumers, and society. In addition, this value<br />
supports the ethanol delivery channel, increasing<br />
the availability of ethanol at fuel stations, and<br />
encouraging automobile manufacturers to make<br />
flex-fuel vehicles available. Corn ethanol is helping<br />
to establish the alternative fuel infrastructure. It is<br />
paving the way for research in alternative sources<br />
for ethanol, including sugar beets, sugarcane,<br />
switchgrass, and plant cellulose.<br />
Biodiesel Provides Another Renewable<br />
Fuel Option for the World<br />
Ethanol is not the only potential source of renewable<br />
energy. Another rapidly growing alternative<br />
to gasoline and petroleum-based fuels is biodiesel<br />
fuel. Biodiesel production has the potential to help<br />
create new economic opportunities for farmers<br />
90<br />
60<br />
30<br />
#2 Yellow Corn<br />
Number of Samples
who grow oilseed crops, reduce harmful emission<br />
of greenhouse gases, and increase energy security.<br />
In Europe, where traditional diesel was already a<br />
popular fuel choice, biodiesel production increased<br />
65 percent during 2005, totaling 965 million<br />
gallons. 11 That year, biodiesel production totaled<br />
75 million gallons in the United States, triple the<br />
previous year’s production. 11<br />
Biodiesel is created by the reactions of vegetable<br />
oils or other lipid sources with methanol. Vegetable<br />
oils used to create biodiesel come from soybean,<br />
cottonseed, corn, rapeseed/canola, sunflower,<br />
safflower, coconut, and palm. Animal fats or waste<br />
oils (such as used restaurant grease) can also<br />
be used to make biodiesel, but pretreatment is<br />
generally required. The choice of oil depends on<br />
prices and local supplies. Rapeseed oil is typically<br />
used in Europe. In the United States, 92 percent<br />
of the biodiesel fuel was made from soybean oil<br />
last year. 18<br />
WORLD BIODIESEL PRODUCTION, 1991-2005<br />
(liters in billions)<br />
5<br />
4<br />
3<br />
2<br />
1<br />
Source: F.O. Licht, as cited by Worldwatch Institute<br />
<strong>Monsanto</strong>’s pipeline is positioned to contribute to<br />
the growth of biodiesel. We have many products<br />
that increase agricultural productivity and farmer<br />
profitability. The seed industry is at the beginning<br />
of the biodiesel supply chain, and vegetable oil<br />
accounts for about 85 percent of the biodiesel<br />
cost. 18 Our products in development will help<br />
increase both the crop yield and the oil yield per<br />
acre. Roundup RReady2Yield soybeans, now in<br />
advanced development, will increase overall yield.<br />
Later, Renessen’s high-oil soybeans and high-oil<br />
corn will increase their oil content. Crops such<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 13<br />
12-41 % of fuel-related<br />
greenhouse gas could be eliminated<br />
with biofuels. 17<br />
as winter canola, a cost-effective rotational crop<br />
for wheat farmers, can increase the vegetable oil<br />
supply as well as improve farmer profitability.<br />
Biodiesel can be used in any diesel engine with<br />
little or no modification to the engine or fuel<br />
system. Biodiesel can be used as a pure fuel or<br />
blended with petroleum in any percentage. B20,<br />
available at many fueling stations, is a blend of<br />
20 percent biodiesel (by volume) with 80 percent<br />
petroleum diesel. For additional information on<br />
biodiesel, visit www.biodiesel.org.
14 FACING GLOBAL CHALLENGES<br />
Healthy Environment<br />
0.5 tons<br />
of carbon per acre per year<br />
can be sequestered by<br />
conservation tillage. 19<br />
185<br />
Carbon dioxide equivalent<br />
to the burning of 185 gallons<br />
of gasoline is sequestered<br />
for every hectare of<br />
20, 21<br />
no-till farming.<br />
As the world’s population continues<br />
to grow, humanity places greater<br />
demands on the earth. Demand for<br />
grain is increasing rapidly. Rising<br />
incomes in many parts of the developing<br />
world are enabling people both<br />
to buy more consumer goods, which<br />
require resources for manufacture,<br />
and to eat more animal protein,<br />
which requires large amounts of<br />
feed grain for production.
Sustainable Farmlands Can Help<br />
Mitigate Climate Change<br />
Climate changes are placing greater demands<br />
on the environment. In 2002, the latest year for<br />
which comprehensive data are available, global<br />
carbon dioxide emissions were estimated at almost<br />
25 billion tones. 22 Atmospheric carbon dioxide has<br />
increased from a pre-industrial concentration of<br />
about 280 parts per million to about 367 parts<br />
per million at present. 23<br />
Climate change is among the most pervasive<br />
threats to the web of life. Although there is still<br />
some debate about the causes and ultimate<br />
effects of climate change, humans have the<br />
power to address at least some of its sources.<br />
Smart choices about energy use, material<br />
consumption, and production methods have the<br />
potential to reduce some of the effects of climate<br />
change. They will also help society treat the finite<br />
resources of the earth responsibly. Environmental<br />
action, through sustainable resource management<br />
and production, can make a difference.<br />
Agriculture is one area where changes in<br />
production methods are showing benefits to the<br />
environment. Agriculture employs more than a<br />
billion people and generates more than a trillion<br />
dollars’ worth of food annually. 24 Pasture and cropland<br />
occupy 50 percent of the earth’s habitable<br />
land and provide habitat and food for most of the<br />
world’s plant and animal life. 24 In addition, the<br />
agricultural sector consumes about 69 percent<br />
GLOBAL MONSANTO PLANTED BIOTECH ACRES<br />
(in millions)<br />
250<br />
200<br />
150<br />
100<br />
50<br />
1998 1999 2000 2001 2002 2003 2004 2005 <strong>2006</strong>*<br />
*Denotes YTD June 29, <strong>2006</strong><br />
Source: <strong>Monsanto</strong> Company http://www.monsanto.com/monsanto/content/<br />
investor/financial/reports/<strong>2006</strong>/Q3<strong>2006</strong>Acreage.pdf<br />
of the planet’s fresh water — more than twice<br />
as much as industry does (23 percent). 24<br />
Never before have farmers around the world been<br />
asked to produce so much food for so many people<br />
on so little land. Many farmers are adopting technologies<br />
that allow them to produce quality foods<br />
while protecting the environment. According to<br />
C. Ford Runge, these changes in agricultural<br />
practices “are currently revolutionizing the<br />
planting and harvesting of crops such as corn<br />
and soybeans, integrating them much more fully<br />
with biological cycles, and reducing the erosion<br />
and soil fertility losses that accompany traditional<br />
deep-plowing methods.” 25<br />
Conservation Tillage Improves<br />
Environmental Sustainability<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 15<br />
208 million<br />
metric tons of carbon created by human<br />
activity can be sequestered in the soil through<br />
conservation tillage in the United States. 19<br />
A soybean field demonstrating conventionally<br />
plowed rows (left) and conservation tillage (right).<br />
At <strong>Monsanto</strong>, we are in a unique position to help<br />
growers farm sustainably. Our products have<br />
benefits that allow them to grow crops with less<br />
environmental impact than conventional farming.<br />
Some of our traits allow farmers to reduce the<br />
application of pesticides. 26 Others allow Roundup
16 FACING GLOBAL CHALLENGES<br />
CONSERVATION TILLAGE<br />
Reduces the number of tillage trips across<br />
the field and fuel burned<br />
Reuses the resources already in the soil<br />
to maintain soil productivity<br />
Recycles leaves, stubble, and other residue<br />
from past crops into nutrients<br />
AS A RESULT, IT PROVIDES MANY<br />
ENVIRONMENTAL BENEFITS<br />
Conserves soil and water, helping keep agriculture<br />
sustainable and maintaining natural resources<br />
Less erosion of soil results in cleaner<br />
water in rivers and streams<br />
Better soil conservation practices results<br />
in less flooding<br />
Less fuel burned results in cleaner air<br />
Carbon from previous crops is returned<br />
to the soil, resulting in less carbon dioxide<br />
released to the atmosphere<br />
Enhanced wildlife habitat in fields and waterways<br />
agricultural herbicides to be used in conjunction<br />
with Roundup Ready crops. Together, they<br />
allow farmers to practice efficient conservation<br />
tillage systems.<br />
In the last decade and a half, various conservation<br />
agriculture practices have been introduced around<br />
the world. Conservation tillage, one such production<br />
technology, reduces the soil disturbance needed to<br />
prepare for planting and to control weeds. In the<br />
past, farmers did not have the necessary tools, such<br />
as no-till planters and in-crop weed control, for<br />
conservation tillage, so they had to use their plows<br />
to turn the soil before planting. Although conventional<br />
plowing leaves fields looking clean, it takes<br />
time, burns fuel, and leaves soil exposed to<br />
erosion from wind and rain.<br />
The environmental benefits of no-till are significant.<br />
Farmers who use no-till leave the remains of the<br />
previous crop as mulch on the field. This mulch<br />
protects the soil from wind and rain, and it recycles<br />
nutrients into the soil to help the next season’s crops<br />
grow. Moreover, carbon from the retained plant<br />
matter is recycled into the soil. One acre of no-till<br />
farming sequesters as much as 0.5 tons of carbon<br />
each year, 19 as much carbon dioxide as is emitted<br />
20, 21<br />
by the burning of 75 to 185 gallons of gasoline.<br />
In fact, eleven percent of carbon created by human<br />
activity can be sequestered by agricultural lands. 27<br />
According to Runge, “After decades of research,<br />
biotechnology is now helping to bring corn<br />
production into a new era in which corn plants<br />
are being genetically engineered to resist various<br />
pests… [These technologies] will usher in<br />
increases in efficient use of natural resources,<br />
and will be highly complementary to soilconserving<br />
technologies.” 25<br />
UPPER: The remains of a previous corn crop<br />
are protective mulch for this soybean field.<br />
LOWER: Conservation tillage methods reduce<br />
erosion and soil fertility loss.
Pledge Award Winners<br />
Development of an Improved Conservation-Tillage<br />
System for the Brazilian Cerrados<br />
Encompassing 200 million hectares, the Brazilian<br />
Cerrados are the largest savanna in South America<br />
and an important agricultural growth area. A<br />
conservation-tillage system for the Cerrados would<br />
have many environmental benefits, but first it<br />
would need to be adapted to the seasonal<br />
conditions of the region.<br />
<strong>Monsanto</strong>’s Cerrados Technology Development<br />
Team designed a system to address the weaknesses<br />
of prior conservation-tillage practices in the<br />
Cerrados. They conducted field trials, identified<br />
the best cover crops (see photo, right), and developed<br />
best practices for incorporating and seeding<br />
the cover crops. The team shared its findings with<br />
more than 4,000 farmers through training seminars<br />
and field days. Farmers who implemented the<br />
Rice is the traditional crop in<br />
coastal Andhra Pradesh. But the<br />
decreasing supply of freshwater<br />
for irrigation threatens the area’s<br />
economy, because it prevents<br />
farmers from planting rice the<br />
customary two seasons in a row.<br />
Local farmers tried switching<br />
to a less water-consuming crop<br />
such as corn between rice<br />
plantings, but that resulted in<br />
weeds that limited the yield<br />
of the corn crop.<br />
A <strong>Monsanto</strong> team (featured<br />
right), recognizing the challenges<br />
the farmers faced,<br />
developed an effective no-till<br />
system for the region. The team<br />
recommended a combination<br />
of pre-emergence and postemergence<br />
herbicides that<br />
allow corn to be planted in the<br />
rice crop residue, which lets<br />
farmers control weeds without<br />
tillage and growing corn with<br />
little additional irrigation.<br />
With these methods, corn<br />
yields have increased<br />
dramatically, often to<br />
10 times previous levels.<br />
In addition, the introduction of<br />
an alternate crop reduced the<br />
amount of freshwater used in<br />
agriculture. Moreover, no-till<br />
practices sequester carbon<br />
in the soil and reduce erosion.<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 17<br />
team’s recommendations<br />
are already<br />
realizing benefits: better<br />
yields, improved water management, reduced<br />
erosion, lower carbon dioxide emission, fewer<br />
costs, and less need for mechanical labor.<br />
This project is one of the first sustainable production<br />
systems for the Cerrados. It has the potential to<br />
reduce carbon dioxide emission from farms<br />
by more than 1 metric ton a hectare.<br />
In Brazil, <strong>Monsanto</strong>’s reputation as a partner in<br />
agriculture and a no-till technology leader continues,<br />
strengthening our tradition of innovative technology<br />
and our partnership with farmers to promote<br />
sustainable food production around the world.<br />
No-Tillage Corn in Andhra Pradesh Helps Farmers Overcome Water Shortage<br />
Today, the farmers in Andhra<br />
Pradesh are realizing the<br />
benefits of no-tillage farming.<br />
Their farms are sustainable,<br />
and they are seeing greater<br />
yields and profits. In addition,<br />
the new practices demonstrate<br />
respect for neighboring<br />
communities and their own<br />
limited water supply.
18 FACING GLOBAL CHALLENGES<br />
Healthier Foods<br />
The demand for healthier food<br />
options is increasing.With greater<br />
access to health and nutrition<br />
information, consumers have a<br />
growing voice in determining which<br />
crops farmers grow, how foods are<br />
produced, and what health and<br />
nutrition benefits they can expect<br />
from these foods.Working with<br />
food companies, processors, and<br />
farmers, <strong>Monsanto</strong> is leading the<br />
way to develop agricultural<br />
products for healthier foods.<br />
1 billion pounds<br />
of trans fats can potentially<br />
be eliminated through the use<br />
28, 29<br />
of low-linolenic soybean oil.<br />
Vistive Soybean Oil Adds<br />
to Heart-Healthy Food Options<br />
People around the world are becoming increasingly<br />
interested in healthier food options. Food producers<br />
are looking for ways to meet this demand by, among<br />
other actions, reducing trans fats. In addition, in<br />
<strong>2006</strong> the U.S. Food and Drug Administration began<br />
requiring food labels to include information about<br />
trans fat content.<br />
Since commercialization in 2005, our Vistive lowlinolenic<br />
acid soybeans have quickly become a<br />
promising tool for food manufacturers to reduce<br />
trans fats and provide healthier products to<br />
consumers. Trans fats are created when oils are<br />
hydrogenated to prolong their shelf life. Lowlinolenic<br />
soybeans are more stable than ordinary<br />
soybeans and therefore require little, if any, hydrogenation.<br />
In <strong>2006</strong>, about 500,000 acres of Vistive<br />
soybeans were planted. In 2007, we expect to see<br />
two to four times that amount as food companies<br />
continue to seek low-trans fat solutions.<br />
Soybean oil is the food industry’s predominant<br />
vegetable oil because of its favorable taste profile,<br />
food formulation flexibility, and global supply.<br />
After discussions with food manufacturers, we<br />
decided that Vistive could establish a new standard<br />
for the performance of food-grade oils. In<br />
addition to food processors and manufacturers,<br />
restaurants are testing Vistive oils in their recipes.<br />
Though they are not required to label trans fats<br />
Because Vistive soybeans are low in linolenic<br />
acid, oil derived from them does not require<br />
much, if any, hydrogenation.
80 % of trans fats in the diet are<br />
29, 30<br />
provided by processed foods and oils.<br />
by law, many restaurant companies want to develop<br />
trans fat-free kitchens that do not sacrifice taste.<br />
Already, more than 100 food companies are using<br />
or testing Vistive oil.<br />
More Products to Provide Healthier<br />
Options for Consumers<br />
<strong>Monsanto</strong> is developing many other products that<br />
we believe will help the food industry deliver healthy<br />
products to consumers around the world.<br />
In 2005, we launched rapeseed varieties that<br />
produce oils food companies can use to make<br />
economical products with reduced trans fats, while<br />
maintaining taste and shelf life. To meet increasing<br />
demand for high-quality vegetable-based protein,<br />
we are developing a better-tasting soybean through<br />
conventional breeding. This will provide an option<br />
for people who want the heart-healthy benefits of<br />
soy, but currently make other choices for flavor.<br />
500 lives<br />
a year can potentially be saved in<br />
the United States through reduced<br />
trans fats consumption. 31<br />
Vistive oil allows food companies to provide<br />
consumers with healthier products.<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 19<br />
We are also working on second-generation soybean<br />
oils with more heart-healthy monounsaturated fat,<br />
similar to olive oil. These would also enable food<br />
products to have low-trans fat benefits, including<br />
improved flavor stability and longer shelf life. Our<br />
third-generation biotech research on oils is building<br />
on the benefits of heart-healthy monounsaturated<br />
fat and low trans fat and adds the benefit of very<br />
low levels of saturated fat.<br />
Long-term research involves ways to produce food<br />
crops enriched with omega-3 fatty acids. People<br />
generally associate omega-3 fatty acids with fish, but<br />
fish actually ingest omega-3 from algae. It is this<br />
trait found in algae that our scientists are working<br />
to deliver through a land-based oilseed crop. The<br />
largest source for vegetable oil in the United States<br />
is soy, thus it is the target crop for this research.<br />
These products could provide consumers with<br />
higher levels of omega-3s in foods and provide<br />
an additional means to maintain their heart health.<br />
The goal is to create an affordable, land-based,<br />
renewable oil source with properties that contribute<br />
to great-tasting food products.
20 FACING GLOBAL CHALLENGES<br />
Viewpoint: Healthier Foods<br />
Vistive Oils Help Meet Consumer Demand for Healthier Foods<br />
In response to consumer demands for healthier foods, <strong>Monsanto</strong> delivered<br />
Vistive low-linolenic soybeans to the marketplace. The first U.S. commercial<br />
harvest was in 2005. The product was well received, and is gaining support<br />
among growers, processors, and food companies.<br />
Growers are aware of the important role their crops play in the diets of many,<br />
and of the value that Vistive soybeans can provide to consumers. “Consumers are more health conscious<br />
than ever,” said grower Chuck Shelby. “Vistive gives us a product that meets their<br />
needs.” Indeed, although many seed traits have been designed to improve farm<br />
productivity, Vistive is the first to provide direct consumer benefits. “ Vistive is one<br />
of the first biotech products that gives benefits directly to the consumer,”<br />
said grower Duane Davids.<br />
Just as growers are excited about the option to grow heart-healthy crops for consumers, processors are<br />
adding Vistive to the crops that they process to meet consumer interests. “As a leading solution provider<br />
to the U.S. food industry, Cargill is pleased to help our manufacturing customers better<br />
meet their customers’ needs, and to partner with <strong>Monsanto</strong> in commercializing these<br />
exciting new products,” said Stan Ryan President of Cargill’s Dressings, Sauces and<br />
Oils — North America business. “We look forward to continue participating in<br />
the growing promise of innovations such as Vistive.” 32<br />
In addition, consumer health groups are encouraging healthier food choices among busy consumers.<br />
The American Heart Association (AHA) advocates low-trans fat diets to reduce risk for heart disease.<br />
According to AHA’s Nutrition Committee: “In clinical studies, trans fatty acids found in hydrogenated fats<br />
and partially hydrogenated cooking oils tend to raise total blood cholesterol and LDL (bad) cholesterol<br />
levels and lower HDL (good) cholesterol levels when used instead of cis fatty acids or natural oils.”<br />
“These changes tend to increase your risk of heart disease and stroke. Strong epidemiological evidence<br />
also indicates trans fatty acid intake is associated with an increased risk of coronary heart disease…The<br />
American Heart Association’s Nutrition Committee strongly advises that healthy Americans over age two<br />
limit their intake of saturated fat and trans fat to no more than 10 percent of total calories.” 33<br />
heart-healthy<br />
Just as growers are excited about the option to grow<br />
heart-healthy crops for consumers, processors are adding Vistive<br />
to the crops that they process to meet consumer interests.
A cotton farmer in Patri,<br />
Maharashtra, India.<br />
2<br />
Delivering Value
22 DELIVERING VALUE<br />
2<br />
Delivering value is the key to success<br />
for products, businesses, and individuals.<br />
At <strong>Monsanto</strong>, we strive to develop, manufacture,<br />
and deliver products that provide<br />
societal, environmental, and economic value.<br />
Our focus is applying innovation and technology to agriculture to make our farmer<br />
customers around the world more productive and successful. We use the tools of<br />
modern biology to make seeds easier to grow, to allow farmers to do more with fewer<br />
resources, and to produce healthier foods for consumers and better feed for animals.<br />
Our biotechnology products also bring environmental benefits such as reduced<br />
pesticide application 26 and improved agricultural practices.<br />
Our business is grouped in two areas.<br />
The first area, high-quality seeds and<br />
genomics, includes our global seeds<br />
and traits businesses and our genetic<br />
technology platforms — biotechnology,<br />
breeding, and genomics. The second<br />
area, agricultural productivity, includes<br />
crop protection products such as<br />
Roundup agricultural herbicides,<br />
residential lawn-and-garden herbicide<br />
products, and our animal agriculture<br />
businesses.<br />
Through the benefits these products<br />
provide to our customers and the<br />
efficiency and safety of our manufacturing<br />
sites, we deliver value.<br />
2005 ORGANIZATIONAL PROFILE 34<br />
LOCATIONS<br />
in 47 countries<br />
NUMBER OF EMPLOYEES<br />
16,500 full time and 5,500 temporary workers 35<br />
NET SALES<br />
$6.3 billion<br />
KEY CROPS<br />
Corn, Cotton, Oilseeds (soy and canola),<br />
and Vegetables<br />
LEADING BRANDS<br />
Corn and Soy Seed . . . . . . . . . . . . . . . . . . DEKALB, Asgrow<br />
Cotton Seed. . . . . . . . . . . . . . . . . . . Stoneville and NexGen<br />
Vegetable Seed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Seminis<br />
Animal Ag . . . . . . . . . . . . . . . Posilac bovine somatotropin<br />
Herbicides . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Roundup
Societal Value<br />
Our societal goals involve respect<br />
for and dialogue with the communities<br />
in which we operate.<br />
We work to provide safe products that enhance<br />
the social and economic well-being of people<br />
around the world, and we support community<br />
programs through the direct volunteer efforts of<br />
our employees and the philanthropic work of the<br />
<strong>Monsanto</strong> Fund (see page 43). We also work<br />
continuously to improve the safety of our manufacturing<br />
and seed conditioning sites and to provide<br />
road safety training for drivers. Moreover, we have<br />
adopted a human rights policy that guides our<br />
treatment of our own employees and everyone<br />
with whom we do business.<br />
<strong>Monsanto</strong> People Take Safety Seriously<br />
<strong>Monsanto</strong> shows respect for its colleagues and<br />
for people around the world where our products<br />
are manufactured, grown, and used by making<br />
every reasonable effort to protect their safety.<br />
Stewardship programs minimize product risk<br />
to customers (see page 40), and we continually<br />
reinforce process safety as part of our culture<br />
of continuous safety improvement.<br />
In 2004, we achieved our best year ever for safety.<br />
We remained fairly level with that overall record in<br />
2005, experiencing only a slight increase as new<br />
businesses came onboard. Our manufacturing<br />
operations surpassed their previous record,<br />
improving 13 percent for employees and 26 percent<br />
for contractors. Our seed sites continue to improve<br />
their safety performance. Agriculture is one of the<br />
world’s most dangerous occupations, but <strong>Monsanto</strong><br />
is applying safety values from its research and<br />
agricultural chemical businesses to make our seed<br />
operations as safe as our other workplaces. Since<br />
1997, when many of our seed sites were acquired,<br />
<strong>Monsanto</strong> has reduced the number of safety<br />
incidents by 88 percent.<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 23<br />
13 % improvement<br />
Manufacturing employees surpassed their<br />
previous safety record, improving 13 percent<br />
for employees and 26 percent for contractors.<br />
MONSANTO COMPANY-WIDE INJURY/ILLNESS RATE (TRR)<br />
(number of occupational injuries and illnesses<br />
per 200,000 hours worked)<br />
<strong>Monsanto</strong> Industry<br />
2005 1.0* **<br />
2004 0.9 5.0<br />
2003 1.2 5.0<br />
* With new acquisitions<br />
** 2004 is the most recent industry data<br />
To achieve these world-class results, <strong>Monsanto</strong><br />
involves all employees in safety and health<br />
programs. The Global Environment, Safety, and<br />
Health Council comprises employee representatives<br />
from all areas of our business. As a result, the<br />
council is able to make safety policy decisions that<br />
include perspectives from across the work force.<br />
<strong>Monsanto</strong> has a program to certify its operational<br />
sites for safety performance. These sites earn the<br />
<strong>Monsanto</strong> Star only by strict compliance with<br />
<strong>Monsanto</strong> safety standards. In the United States,<br />
these high-performing sites have also been certified
24 DELIVERING VALUE<br />
by the Occupational Safety and Health Administration<br />
(OSHA) and given the OSHA Voluntary<br />
Protection Program Star. In 2005, 13 sites were<br />
added, including our St. Louis headquarters and<br />
our Chesterfield, Missouri, research sites, bringing<br />
our total to 93 Star sites worldwide.<br />
“Safety is a continuous process. We will never<br />
be finished. Our mission is for every <strong>Monsanto</strong><br />
employee, contractor and visitor to think about<br />
safety as part of everything they do, every day,”<br />
said Emer OBroin, vice president for Environment,<br />
Safety, and Health.<br />
Road Safety is also Our Priority<br />
<strong>Monsanto</strong> has built a reputation as a safety perfectionist<br />
on its job sites. Our statistics improve each<br />
year; we do significantly better than the rest of our<br />
industry. However, many employees do not work<br />
in an office. They work on the road, meeting with<br />
growers and distributors and conducting other<br />
business. Driving safety came into focus several<br />
years ago when we experienced several fatalities<br />
in one year. We realized that just as site safety is<br />
MONSANTO STAR SITES<br />
<strong>Monsanto</strong> has a program to certify its operational sites for safety performance.<br />
These sites earn the <strong>Monsanto</strong> Star only by strict compliance with <strong>Monsanto</strong> safety<br />
standards. In the United States, these high-performing sites have also been certified<br />
by the Occupational Safety and Health Administration (OSHA) and given the OSHA<br />
Voluntary Protection Program Star. A total of 93 <strong>Monsanto</strong> sites have been certified since<br />
the program began. Thirteen were added in <strong>2006</strong>. Twenty-one were added in 2005.<br />
For the list of Star locations, visit www.monsanto.com/monsanto/layout/our_pledge/.<br />
North America<br />
South America<br />
important for our success and the wellbeing of our<br />
employees, so is road safety.<br />
In 2002, we embarked on a vehicle safety program<br />
to address this problem. Now, each year, every<br />
<strong>Monsanto</strong> employee completes a driver’s training<br />
module. More than 20,000 <strong>Monsanto</strong> people participated<br />
in 2005. Employees who spend much of their<br />
time driving are required to go through even more<br />
intensive behind-the-wheel training. In 2005, more<br />
than 2,000 employees participated in this training.<br />
In 2005, we recorded our best vehicle safety record<br />
ever: zero vehicle fatalities and 3.6 accidents per<br />
million miles driven. That result, consistent with<br />
2004 results, earned us a best-in-class designation<br />
among other companies with similar fleet safety<br />
programs. Saving lives and reducing injuries are<br />
the rewards, but other benefits follow. In the<br />
United States, we reduced costs incurred from<br />
auto accidents by 30 percent.<br />
We have shared our experience with many other<br />
companies and industry groups. <strong>Monsanto</strong> serves<br />
on the board of directors of the Network of<br />
Employers for Traffic Safety.<br />
South East Asia<br />
Europe<br />
South Africa
Viewpoint: Human Rights<br />
Adoption of a Human Rights Policy for Our Company<br />
Sherrie Esposito, Global Corporate Responsibility, <strong>Monsanto</strong> Company<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 25<br />
In April <strong>2006</strong>, <strong>Monsanto</strong> Company’s board of directors formally adopted<br />
a human rights policy for our company. The policy, a manifestation of the<br />
company’s values as stated in <strong>Monsanto</strong>’s Pledge, emphasizes our commitment<br />
to the protection and advancement of human rights. It includes provisions on child labor, forced<br />
labor, compensation, working hours, harassment and violence, discrimination, safety, and freedom of<br />
association. A copy of <strong>Monsanto</strong>’s human rights policy, as well as background information, can be found<br />
in the Pledge section of our company’s Web site.<br />
Our human rights policy was guided by the Universal Declaration on Human Rights as well as the<br />
International Labor Organization’s Declaration on Fundamental Principles and Rights at Work. Development<br />
of the policy included consideration of the global nature of our business and the circumstances unique<br />
to agriculture. In addition, consistent with our Pledge values — especially dialogue and transparency —<br />
the policy was vetted with a broad group of internal and external stakeholders. We believe this approach<br />
was valuable and essential in creating a policy that is appropriate for our business, considers the concerns<br />
of our shareholders, and is attentive to experts in the area.<br />
Our company is taking a thoughtful, phased and systemic approach to implementation of the policy. We<br />
are in the early stages of our implementation efforts to support this newly adopted policy. Implementation<br />
will include communicating the policy to employees and our business partners, creating operational<br />
guidelines and a management information system, training sessions, and audits as a means to verify<br />
compliance. <strong>Monsanto</strong> will work within its business, as well as with its business partners, on<br />
a continuous improvement basis, to address noncompliance issues. Although this approach will<br />
require time and effort, we believe that it is necessary to achieve our goal of sustainable compliance.<br />
Our strategy is to embed the human rights policy and implementation into existing business processes.<br />
To execute a global policy effectively, it is important that we make implementation inclusive. To achieve<br />
this, we will continue to work with a global, cross-functional team that guides our actions and keep<br />
regions and functional areas informed. In addition to functional representatives, the team includes<br />
regional human rights champions who work with our employees and business partners to implement<br />
the policy in their regions.<br />
We look forward to a productive year. We will provide you with an update in next year’s Pledge Report.<br />
Our strategy<br />
Our strategy is to embed<br />
the human rights policy and implementation<br />
into existing business processes.
26 DELIVERING VALUE<br />
Environmental Value<br />
Through our activities and our customers’ use of our products, we<br />
strive to affect agricultural sustainability positively.The environmental<br />
value we deliver can be measured through the eco-efficiency of our<br />
manufacturing operations, the effect of our products on agricultural<br />
sustainability, and our continuing efforts to improve our operations<br />
and the benefits our products provide.<br />
Eco-Efficiency Data 2005<br />
The eco-efficiency reporting method used here was developed in cooperation with the World Business<br />
Council for Sustainable Development. The system permits year-to-year comparison of new data to baseline<br />
data from calendar year 1990. Product data (for example, energy use and material consumption) are<br />
recorded by total amounts and by environmental influence per unit of output. For purposes of comparison<br />
with prior years, a constant product mix based on <strong>Monsanto</strong>’s technical-grade chemical production as<br />
of calendar year 2005 is used. That adjusts previous-year data so that changes in product mixes do not<br />
influence the comparability of the year-to-year eco-efficiency indicators. Ozone-depleting substances<br />
(ODS) are not graphed, because the total is too small to be statistically significant.<br />
ENERGY CONSUMPTION<br />
(environmental influence in gigajoules /<br />
output in metric tons)<br />
17,900,000 / 412,000<br />
2005 43.4<br />
18,200,000 / 420,000<br />
2004<br />
43.3<br />
15,100,000 / 173,000<br />
1990<br />
87.3<br />
More Efficient Less Efficient<br />
Energy (gigajoules) / Tech Products (metric tons)<br />
DIRECT GREENHOUSE GAS EMISSIONS<br />
(environmental influence in metric tons/<br />
output in metric tons)<br />
1,327,000 / 412,000<br />
2005 3.2<br />
1,302,000 / 420,000<br />
2004<br />
3.1<br />
825,000 / 173,000<br />
1990<br />
4.8<br />
More Efficient Less Efficient<br />
GHG (metric tons CO2 eq)/ Tech Products (metric tons)<br />
INDIRECT GREENHOUSE GAS EMISSIONS<br />
(environmental influence in metric tons/<br />
output in metric tons)<br />
574,000 / 412,000<br />
2005 1.39<br />
581,000 / 420,000<br />
2004<br />
1.38<br />
422,000 / 173,000<br />
1990<br />
2.44<br />
More Efficient Less Efficient<br />
GHG (metric tons CO2 eq)/ Tech Products (metric tons)<br />
CHEMICAL OXYGEN DEMAND (COD)<br />
(environmental influence in metric tons to surface water /<br />
output in metric tons)<br />
2,890 / 412,000<br />
2005 0.0070<br />
3,190 / 420,000<br />
2004<br />
0.0076<br />
2,000 / 173,000<br />
1990<br />
0.0116<br />
More Efficient Less Efficient<br />
COD (metric tons O2 eq)/Output in (metric tons)
WASTE OFFSITE<br />
(environmental influence in metric tons/<br />
output in metric tons)<br />
10,400 / 412,000<br />
2005 0.025<br />
10,100 / 420,000<br />
2004<br />
0.024<br />
15,000 / 173,000<br />
1990<br />
0.087<br />
More Efficient Less Efficient<br />
Waste (metric tons)/ Tech Products (metric tons)<br />
WATER CONSUMPTION<br />
(output in metric tons/<br />
environmental influence in cubic meters)<br />
14,500,000 / 412,000<br />
2005 35.2<br />
15,700,000 / 420,000<br />
2004<br />
37.4<br />
12,900,000 / 173,000<br />
1990<br />
74.6<br />
More Efficient Less Efficient<br />
Water (cubic meters)/ Tech Products (metric tons)<br />
SCOPE OF DATA<br />
<strong>Monsanto</strong> major agricultural chemical production;<br />
P 4 production; world headquarters’ research,<br />
development, and administration locations<br />
TECHNICAL PRODUCT OUTPUT<br />
412,000 metric tons<br />
<strong>Monsanto</strong>’s Roundup agricultural herbicide<br />
manufacturing facility in Luling, Louisiana.<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 27<br />
EUTROPHICATION<br />
(environmental influence in metric tons to surface water/<br />
output in metric tons)<br />
3,500 / 412,000<br />
2005 0.0085<br />
3,670 / 420,000<br />
2004<br />
0.0087<br />
1,570 / 173,000<br />
1990<br />
0.0091<br />
More Efficient Less Efficient<br />
Phosphates (metric tons PO4 eq.)/ Tech Products (metric tons)<br />
ACIDIFICATION EMISSIONS<br />
(environmental influence in metric tons/<br />
output in metric tons)<br />
11,680 / 412,000<br />
2005 0.028<br />
15,550 / 420,000<br />
2004<br />
0.037<br />
14,530 / 173,000<br />
1990<br />
0.084<br />
More Efficient Less Efficient<br />
Emissions (metric tons SO2 eq.)/ Tech Products (metric tons)<br />
PHOTOCHEMICAL OXIDANT CREATION<br />
(environmental influence in metric tons/<br />
output in metric tons)<br />
99 / 412,000<br />
2005 0.00024<br />
104 / 420,000<br />
2004<br />
0.00025<br />
102 / 173,000<br />
1990<br />
0.00059<br />
More Efficient Less Efficient<br />
VOCs (metric tons)/ Tech Products (metric tons)<br />
MATERIAL CONSUMPTION<br />
(environmental influence in metric tons/<br />
output in metric tons)<br />
2,674,000 / 412,000<br />
2005 6.5<br />
2,643,000 / 420,000<br />
2004<br />
6.3<br />
1,371,000 / 173,000<br />
1990<br />
7.9<br />
More Efficient Less Efficient<br />
Materials (metric tons)/ Tech Products (metric tons)
28 DELIVERING VALUE<br />
For many years, the <strong>Monsanto</strong><br />
facility in Antwerp, Belgium,<br />
has purchased chlorine and<br />
hydrogen by pipeline from<br />
an adjacent manufacturer for<br />
use in several processes. After<br />
installing a new combined heat<br />
and power unit a few years ago,<br />
our site developed a slight<br />
surplus in steam and therefore<br />
needed less hydrogen to fuel<br />
the conventional boilers. At the<br />
Improvements to the Dairy Sharps-<br />
Disposal Services Program Benefit<br />
Producers and the Environment<br />
In 2003, the Dairy Manufacturing Team and<br />
the Distribution Center in Augusta, Georgia,<br />
undertook environmental improvements to the<br />
voluntary sharps-disposal program for its Posilac<br />
bovine somatotropin customers. This program<br />
provides our Posilac customers with supplies and<br />
services for the removal and destruction of their<br />
sharp syringes, which might otherwise end up<br />
in local landfills.<br />
To improve the program, the team developed<br />
a database to manage and forecast supply and<br />
pickup services. It improved the mail-back kit<br />
design with better ergonomics and increased<br />
its capacity from 350 syringes to 1,600. These<br />
improvements to the sharps-disposal program<br />
Pledge Award Finalists<br />
Converting Waste Hydrogen into Usable Steam<br />
Reduces Carbon Dioxide Emission<br />
same time, the neighboring<br />
company began using a new<br />
technology in its chlorine<br />
production process that<br />
required more steam and<br />
generated more hydrogen.<br />
However, that company did<br />
not have the boiler capacity<br />
onsite to transform the<br />
hydrogen into steam.<br />
Teams from the two facilities<br />
identified ways we could share<br />
resources that would benefit<br />
both companies. After a few<br />
modifications and the installation<br />
of a steam line, the excess<br />
hydrogen from our neighbor<br />
is now converted into steam at<br />
our site, and steam from our<br />
operations is transported back<br />
to the neighbor.<br />
The energy saved through<br />
the optimized distribution<br />
of steam and hydrogen is<br />
equivalent to 2,250 tons<br />
(4.5 million pounds) of<br />
crude oil a year, and our<br />
site reduced carbon dioxide<br />
emission by 5,300 tons<br />
a year. In addition, <strong>Monsanto</strong><br />
is saving an estimated $420,000<br />
a year in energy costs and<br />
$600,000 a year in fixed-cost<br />
absorption.<br />
increased our customer participation. In 2005,<br />
76 percent of syringes purchased through the<br />
system were destroyed this way.<br />
Improvements in the efficiency of the<br />
program also reduced total program costs<br />
by $1.5 million. Thus, the program has<br />
economic, environmental, and safety benefits<br />
for our customers, as well as environmental<br />
benefits for communities in which they operate<br />
by reducing potential exposure to medical waste.
Economic Value<br />
Benefits Drive Growth<br />
in Biotech Crop Acres<br />
Since their commercialization in 1996, biotech<br />
crops have provided benefits to farmers and<br />
communities around the world. The rate of<br />
adoption is a testament to the value these crops<br />
deliver. In 2005, the acreage under cultivation<br />
with biotech crops increased by 11 percent; it<br />
was the 10th consecutive year that biotech crop<br />
acreage grew by 10 percent or more. 37 According<br />
to Clive James of the International Service for the<br />
Acquisition of Agri-Biotech Applications, this is<br />
due chiefly to the economic and environmental<br />
benefits these crops deliver: “The continued, rapid<br />
adoption of biotech crops reflects the substantial<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 29<br />
Our products provide consistent and significant economic benefits to both<br />
large- and small-holder growers. In many cases, farmers are able to grow<br />
higher-quality and better-yielding crops with fewer inputs and less labor. 36<br />
In turn, the benefits these growers realize create a chain of value that<br />
touches many other stakeholders.<br />
Bollgard cotton grower Rajaram Murli Dharlambe (left)<br />
at a celebration with family and neighbors in Aurangabad,<br />
Maharashtra, India.<br />
and consistent improvements in productivity,<br />
the environment, economics, and social benefits<br />
realized by both large and small farmers,<br />
consumers, and society in both industrial<br />
and developing countries.” 37<br />
Biotech crops were grown by 8.5 million farmers in<br />
21 countries in 2005, an increase from 8.25 million<br />
farmers in 17 countries in 2004. 37 Farmers have<br />
adopted these technologies quickly for several<br />
simple reasons: biotech crops improve yield, cut<br />
costs, and reduce pesticide spraying. These benefits<br />
improve farmers’ bottom lines, but they also save<br />
time, improving the quality of life for farmers by<br />
giving them more time to spend with their families<br />
and to pursue other activities. 36
30 DELIVERING VALUE<br />
The economic benefits of biotech crops are significant.<br />
The most recent survey of the global economic<br />
impact estimates that net benefits to crop biotech<br />
farmers in 2004 were $6.5 billion. 38 Accumulated<br />
economic benefits (from 1996 to 2004) of biotech<br />
crops were $27 billion — $15 billion for farmers<br />
in developing countries and $12 billion for those<br />
in industrialized countries — an increase of<br />
4.2 percent over conventional crop revenues. 38<br />
Compared to farmers in industrialized nations,<br />
the benefits of biotech crops are even greater for<br />
resource-poor farmers and their communities.<br />
James found that 90 percent of farmers who<br />
plant biotech crops are resource-poor farmers<br />
in developing countries, and crops in these<br />
countries represent more than one-third of the<br />
2005 global biotech area. 37<br />
Pledge Award Winner<br />
Converting Grasslands to Conservation-Tillage<br />
Farmland Uplifts Lives in the Philippines<br />
Barangay Del Castillo and<br />
Barangay Tady are two mountain<br />
communities in the Iloilo<br />
province of the Philippines.<br />
What little income people make<br />
in these communities comes<br />
from seasonal farm labor in<br />
the nearby lowlands. Between<br />
seasons, families struggle to<br />
afford enough food to eat.<br />
Determined to help, a<br />
<strong>Monsanto</strong> marketing team in<br />
the Philippines collaborated<br />
with input suppliers, financiers,<br />
and grain traders to create a<br />
plan for developing conservation-tillage<br />
(CT) corn farmland<br />
in the mountainous grasslands,<br />
thereby creating economic<br />
benefits for the communities<br />
and increasing their food<br />
self-sufficiency.<br />
The team conducted meetings<br />
with local government officials to<br />
propose the program, explaining<br />
how CT technology would allow<br />
sustainable farming on the idle<br />
land. The team then created a<br />
demonstration plot in each community<br />
and developed financing<br />
options for the farmers.<br />
Farmers now earn an<br />
additional $7,350 a year<br />
on corn production with<br />
an average yield of five<br />
tons a hectare.<br />
“Biotech crops have increased the income of<br />
7.7 million resource-poor farmers in China, India,<br />
South Africa, the Philippines, and seven other<br />
developing countries, helping alleviate them from<br />
abject poverty,” said James. 37 The increased<br />
income these crops generate contributes to food<br />
self-sufficiency and to the alleviation of familial<br />
poverty and ultimately societal poverty in countries<br />
where they are grown. 37<br />
As biotech crops enter their second decade of<br />
commercialization, it is becoming clear that they<br />
provide economic benefits to all farmers who grow<br />
them. Farmers around the world are witnessing<br />
increased yields, reduced labor, and a reduction<br />
in sprays. They are demonstrating their confidence<br />
in biotech crops through continued and expanding<br />
use of them.<br />
Community members have<br />
more income and can provide<br />
a greater quantity of highquality<br />
food for their families,<br />
and the project has enabled<br />
infrastructure development<br />
in the communities. Finally,<br />
conservation tillage is now a<br />
standard practice for these<br />
farmers, helping prevent soil<br />
erosion and rainwater runoff<br />
in the hilly grasslands.
From this strong base of products and technologies<br />
that growers like to use, we are able to provide<br />
economic value to many other stakeholder sectors.<br />
Global Sourcing and Purchasing<br />
As a global company, we do business wherever<br />
crops are grown. We have full- and part-time<br />
employees in almost every agricultural market.<br />
We grow seed for sale and manufacture products<br />
as close to our markets as possible. We also hire<br />
people from within each market and purchase<br />
goods locally whenever possible. We buy raw<br />
materials and supplies and contract with service<br />
providers in most world regions. In 2005, we spent<br />
almost $3 billion to purchase, grow, process, and<br />
manufacture our products. This includes our<br />
manufacturing payroll as well as goods, outside<br />
labor, and fixed costs.<br />
Technology Sharing<br />
One of the platforms of the <strong>Monsanto</strong> Pledge is<br />
our commitment to share our technology in appropriate<br />
ways in parts of the world where it is most<br />
needed. <strong>Monsanto</strong> donated the first working draft<br />
of the rice genome. We have worked with research<br />
institutions in developing countries such as the<br />
Consultive Group on International Agricultural<br />
Research centers and Centro Internacional de<br />
Mejoramiento de Maiz y Trigo to bring modern<br />
agricultural technologies to bear on problems<br />
caused by insects, viruses and weeds. The donation<br />
of intellectual property and technical expertise<br />
helps to boost the work of collaborating scientists<br />
in these organizations, often saving them money<br />
and time as they work toward their goals.<br />
Supplier Diversity Program<br />
The Office of Supplier Diversity is the arm of our<br />
organization that seeks to build strategic partnerships<br />
with certified minority-owned, woman-owned,<br />
and disadvantaged businesses. Our goal as a<br />
company is to purchase high-quality goods,<br />
materials, and professional services needed for<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 31<br />
$ 19 billion<br />
increase in global farm income from<br />
growing biotech crops, 1996-2004. 38<br />
At his farm in Stewart, Minnesota, Mark Maiers grows the<br />
first agricultural product with three biotechnology traits:<br />
YieldGard Plus with Roundup Ready Corn 2.<br />
our business. The Supplier Diversity program<br />
ensures that we source those products from<br />
a broad range of qualified suppliers. The Pledge<br />
commitments guide these efforts. At our headquarters<br />
and at many other locations, we hold<br />
strategic partnerships with woman- and minorityowned<br />
businesses in areas including office and<br />
manufacturing supplies and temporary labor. Over<br />
the past year, the St. Louis Minority Business<br />
Council recognized us for our continued efforts to<br />
build supplier diversity. The council is committed<br />
to promoting partnerships among minority owned<br />
businesses and major U.S. corporations.
32 DELIVERING VALUE<br />
Community Economic Development<br />
Over the last decade, we have been working with<br />
St. Louis community leaders to attract plant and<br />
life science investment and innovation to the region.<br />
St. Louis is the site of our world headquarters. It also<br />
is the home of Washington University, the Donald<br />
Danforth Plant Science Center, the Missouri<br />
Botanical Garden, and the Nidus Center for<br />
Scientific Enterprise — all important assets that<br />
are earning St. Louis a name as a biotech leader.<br />
The whole region benefits from its enhanced<br />
reputation as a technological bio-belt through<br />
high-paying skilled jobs, state-of-the-art training,<br />
the attraction of new scientists to excellent local<br />
academic institutions, and related income taxes<br />
and corporate taxes.<br />
Pledge Award Finalist<br />
Agricultural Industry Promotes Adoption of YieldGard Corn in Europe<br />
Access to agricultural technology<br />
can provide significant<br />
economic benefits to farmers,<br />
their families, and their<br />
communities. Nonetheless,<br />
many farmers in Europe who<br />
were interested in growing<br />
biotech crops were unable to<br />
do so, which deprived them<br />
and their communities of the<br />
economic and environmental<br />
value these crops may bring.<br />
In 2005, a <strong>Monsanto</strong> team in<br />
Europe worked with agricultural<br />
industry members to plant<br />
YieldGard corn beyond Spain,<br />
where it was first planted<br />
commercially in 2003, to four<br />
additional countries — France,<br />
Germany, Portugal, and the<br />
Czech Republic. As a result of<br />
the team’s efforts and those of<br />
its industry partners, farmers in<br />
each of the four countries were<br />
A smallholder Bollgard cotton grower in Gujarat, India.<br />
able to grow YieldGard corn.<br />
In early results, farmers are<br />
seeing real economic benefits,<br />
with 10 to18 percent<br />
average yield gains across<br />
the countries.<br />
Crop plantings in the four<br />
countries were achieved through<br />
dialogue with farmers, grain<br />
handlers, seed associations,<br />
and governments, with respect<br />
for their concerns. The plantings<br />
were conducted in a way that<br />
honored, and in some areas,<br />
further defined for stakeholders<br />
<strong>Monsanto</strong>’s stewardship principles.<br />
Ultimately, the project<br />
has the potential to provide<br />
economic benefits to more<br />
European farmers.
3 Taking Action<br />
While the <strong>Monsanto</strong> Luling, Louisiana,<br />
plant was shut down during the aftermath<br />
of hurricane Katrina in late summer, 2005,<br />
production engineer Paul Mire used his<br />
own boat and personal initiative to rescue<br />
New Orleans residents.
34 TAKING ACTION<br />
3<br />
Taking values-guided action is necessary<br />
for individuals, organizations, and societies<br />
to progress and achieve aspirational goals.<br />
At <strong>Monsanto</strong>, our Pledge and our ability to<br />
deliver valuable products would mean little if we did<br />
not act decisively to help whenever we can.<br />
<strong>Monsanto</strong> people around the world are taking action, within their business teams<br />
and through individual volunteer efforts. They work to develop systems that reward<br />
innovation in underserved markets, make our products and research safe, help their<br />
communities through volunteer efforts and charitable giving, and contribute to<br />
collaborative work environments.<br />
The Pledge values apply to all of our work<br />
at <strong>Monsanto</strong>. Our teams around the world<br />
seek to hire people who hold equivalent<br />
values such that work values are in<br />
harmony with personal values. Thus,<br />
our people do not check their values at<br />
the door when they leave work. Through<br />
the actions of our employees and their<br />
commitment to Pledge values, we are<br />
helping to improve our workplace, our<br />
communities, and society at large.<br />
Chairman, President, and Chief Executive Officer,<br />
Hugh Grant congratulates Jayantilal Satashia at the<br />
2005 Pledge Awards.<br />
THE MONSANTO PLEDGE AWARDS<br />
Winners and finalists of the 2005<br />
<strong>Monsanto</strong> Pledge Awards are<br />
featured throughout this book.<br />
The Pledge Awards honor<br />
<strong>Monsanto</strong> people who practice<br />
Pledge values as they do business.<br />
In 2005, almost 200<br />
nominations were received from<br />
teams around the world representing<br />
many company sectors.<br />
Every Pledge Award nomination demonstrates how<br />
we live the Pledge and make a difference in our<br />
communities and at work.<br />
Winners are selected by a distinguished panel of<br />
external judges, from finalists previously selected by<br />
internal judges, according to two criteria: the environmental,<br />
economic, and societal value delivered by the<br />
project; and how the Pledge values were used in the<br />
actions taken by the team.
Protecting Innovation<br />
As a creative technology company, <strong>Monsanto</strong><br />
relies on strong intellectual property protection.<br />
In the United States and Canada, long-standing<br />
national government policies that recognize and<br />
enforce intellectual property (IP) rights have<br />
allowed farmers to reap the benefits of biotech<br />
crops for more than a decade.<br />
Important developing nations such as Argentina,<br />
China, and India continue the process of building<br />
quality IP systems. Other nations, like Brazil and<br />
Paraguay, have comprehensive IP systems and<br />
are making concerted efforts to improve enforcement<br />
of intellectual property rights.<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 35<br />
Innovation remains the very core of <strong>Monsanto</strong>’s success. It sparks the<br />
creation of new products and delivers substantial value to producers<br />
and consumers. Over the last decade, <strong>Monsanto</strong>’s innovative products<br />
have increased crop yield as well as reduced the use of pesticides.<br />
The result is a better quality of life for farmers through higher<br />
incomes and less time spent working the land.<br />
we believe<br />
Free-market economies offer great<br />
hope for overcoming the tremendous<br />
and immediate needs of the developing<br />
world. Within the predictable business<br />
environment a free-market economy<br />
provides our agricultural technologies<br />
can make considerable contributions<br />
to societal development.<br />
Cotton growers in India planted<br />
3 million acres of Bollgard cotton<br />
in the 2005 growing season.<br />
In nations where enforcement of IP rights is strong,<br />
farmers are recognizing the value they receive in<br />
<strong>Monsanto</strong>’s high-tech seeds and are more willing<br />
to pay for it. Similarly, biosafety regulations are<br />
now in place in many nations and new products<br />
are being approved in a timely fashion.<br />
In countries where IP systems do not exist, are<br />
weak, or are not enforced, innovative companies<br />
are not investing their resources, the work of<br />
creative citizens is unprotected, and counterfeiting<br />
and piracy are common. When a company’s intellectual<br />
property is stolen, standards of quality and<br />
stewardship are also compromised. Ultimately,
36 TAKING ACTION<br />
Viewpoint: Intellectual Property<br />
Free Markets Enhance Social Development<br />
Michael D. Hauser, Public Policy, <strong>Monsanto</strong> Company<br />
We recognize the contribution that quality intellectual property (IP)<br />
systems can provide to economic development. Today, effective<br />
intellectual property systems contribute to stable and creative business environments and healthy<br />
market economies. Effective IP systems can provide an incentive to invest the resources needed<br />
to foster innovation. The result is a society where innovation, knowledge, and creativity are shared<br />
in ways that are respectful of the innovator and the creative hard work of the people.<br />
Intellectual property is currently a topic of emotional debate on the world stage. Some believe that<br />
IP systems benefit only developed countries and exploit developing ones. At <strong>Monsanto</strong>, we believe that<br />
free-market economies offer great hope for overcoming the tremendous and immediate needs of the<br />
developing world. We also believe that, within the predictable business environment a free-market<br />
economy provides, our agricultural technologies can make considerable contributions to societal<br />
development. Such strong market economies are characterized by transparent and science-based<br />
intellectual property rights, which are complemented by other institutions such as legal systems that<br />
impartially enforce the law.<br />
For these reasons, <strong>Monsanto</strong> supports the establishment of effective national intellectual property<br />
systems that comply with the disciplines detailed in the Agreement on Trade-Related Aspects of<br />
Intellectual Property Rights (TRIPS) of the World Trade Organization. Nations that responsibly protect<br />
intellectual property rights are clearly attractive venues for trade and investment. But, just as important,<br />
they are nations whose own innovative and talented citizens do not have to emigrate for fear that their<br />
hard work will be stolen, but rather stay and contribute to the development of society at home.<br />
<strong>Monsanto</strong> addresses intellectual property challenges raised in the developing world through active participation<br />
in international organizations such as the Business and Industry Council of the Office of Economic<br />
Cooperation and Development; the United Nations Environmental Program, the Convention on Biodiversity;<br />
the World Intellectual Property Organization; and the World Trade Organization. <strong>Monsanto</strong> positions<br />
concerning intellectual property stem from our fundamental beliefs. We believe all nations<br />
have a sovereign right to ensure access to and shared benefits from their genetic resources;<br />
intellectual property protection should be practical, transparent, and science-based; strong<br />
enforcement of intellectual property rights is essential to combat counterfeiting and piracy;<br />
and that the private sector can add significant value to intellectual property policy.<br />
innovation<br />
Effective IP systems can provide<br />
an incentive to invest the resources<br />
needed to foster innovation.
customers suffer from sub-standard, potentially<br />
dangerous counterfeit products and economies<br />
suffer the loss of business investment in new<br />
technologies that could contribute to the nation’s<br />
competitiveness in the global marketplace.<br />
GLOBAL COST OF CONTERFEITING AND PIRACY<br />
(dollars in billions)<br />
600<br />
400<br />
200<br />
1982 1985 1990 1996 2000 2005 <strong>2006</strong><br />
Sources: International Chamber of Commerce, Business Action to Stop<br />
Counterfeiting and Piracy; United States Trade Representative, 2004 & 2005<br />
Special 301 Reports.<br />
Perhaps the most pressing intellectual property<br />
challenge today is the increasing problem of<br />
counterfeiting and piracy. Perceived to be problems<br />
primarily for the entertainment and information<br />
technology industries, counterfeiting and piracy are<br />
also threats to innovative science businesses like<br />
ours. To address these threats, <strong>Monsanto</strong> provides<br />
support to numerous anticounterfeiting programs,<br />
such as the International Chamber of Commerce,<br />
Business Action to Stop Counterfeiting and Piracy;<br />
the U.S. Chamber of Commerce, Coalition Against<br />
Counterfeiting and Piracy; and the U.S. Commerce<br />
Department, Strategy Targeting Organized Piracy.<br />
We also enforce our patents in countries that<br />
provide intellectual property protections in order<br />
to achieve a level playing field for the majority of<br />
customers who abide by the law and pay for the<br />
products they use. Similarly, <strong>Monsanto</strong> works with<br />
governments and international organizations to<br />
help develop and enforce counterfeiting and piracy<br />
laws to ensure people who buy brand-name products<br />
receive the quality and performance they<br />
have come to expect from the label.<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 37<br />
$ 600 billion<br />
Worldwide production of counterfeit or<br />
pirated goods has jumped 1,700 percent<br />
in the last fifteen years and is now<br />
estimated as 6 percent of worldwide<br />
trade, a $600 billion market.<br />
Rennesen/Mavera corn breeder<br />
Roger Weyhrich in Boone, Iowa.
38 TAKING ACTION<br />
Investing in Growers<br />
Who Invest in Us<br />
As regulatory and intellectual protection (IP)<br />
enforcement systems develop around the world,<br />
more farmers will be able to take advantage of<br />
agricultural biotech traits. Farmers in the U.S.<br />
and Canada were the first to legally buy and use<br />
<strong>Monsanto</strong>’s traits more than 10 years ago and<br />
their acreage — and support — have grown ever<br />
since. As a show of appreciation for their loyalty,<br />
<strong>Monsanto</strong> is offering North American growers<br />
three premium products and services.<br />
MARKET DEVELOPMENT: North American growers<br />
will receive exclusive access to products from the<br />
Vistive heart-healthy soybean portfolio as long as<br />
they can meet food company demand in a costcompetitive<br />
way. Vistive low-linolenic soybean oil<br />
does not require partial hydrogenation and so is<br />
Soy 2020 examines current trends<br />
and identifies economic, political and<br />
competitive factors that will shape<br />
the next 15 years of soy production.<br />
Researchers Amy Curtis (foreground)<br />
and Tom Jorejsi assess Vistive low-linolenic<br />
soybeans during prelaunch testing in Iowa.<br />
lower in trans fats (see page 18). This year, nearly<br />
500,000 acres were planted in expanded geographies<br />
throughout the U.S. Midwest. Processors are<br />
currently paying farmers a premium of $0.25 to<br />
$0.45 a bushel for Vistive low-linolenic soybeans.<br />
In the future, U.S. farmers will also be given<br />
preferred access to several additional soybean<br />
products including soy crops that will produce<br />
vegetable oils enriched with omega-3 fatty acids<br />
which have many heart-healthy qualities.<br />
RISK MANAGEMENT: Growers in three U.S. states,<br />
Arkansas, Missouri and North Carolina, who double<br />
crop Roundup Ready Soybeans, will be eligible for<br />
a <strong>2006</strong> pilot Double Crop Risk Protection program.<br />
Double cropping is the practice of planting a second<br />
crop on a given acreage soon after harvesting the<br />
first crop. If any of these growers have complete<br />
soybean crop failure, they would be eligible to<br />
receive a refund payment from <strong>Monsanto</strong>. “Many<br />
farmers who double crop soybeans plant their<br />
second crop later in the season, and so incur<br />
greater risk due to moisture variability, early freeze<br />
and other climate factors. We’ve long recognized<br />
farmers’ risk and are evaluating this tool to address<br />
the unique issues faced by our double crop<br />
Roundup Ready soybean customers,” said<br />
Carl Casale, <strong>Monsanto</strong> executive vice president,<br />
North America Commercial.<br />
STRATEGIC PLANNING: <strong>Monsanto</strong> will support and<br />
provide resources for a comprehensive study<br />
looking at what the future holds for the soybean<br />
industry in the year 2020. Soy 2020, coordinated<br />
by the United Soybean Board, will examine current<br />
trends and identify economic, political, and competitive<br />
factors that will shape the next 15 years of soy<br />
production, including market segments such as<br />
animal agriculture, biodiesel, and food manufacturing.<br />
“As a technology provider, a study such as<br />
this can help guide our research to better match<br />
up with the industry’s goals,” said Casale.<br />
As other global economies develop and more<br />
growers can invest in our technology, we will<br />
see how these pilot programs or other programs<br />
developed for different needs, can bring even<br />
more value to customers around the world.
Pledge Award Winners<br />
Contributing to a New Regulatory Framework<br />
for Biosafety in Brazil<br />
A regulatory framework for<br />
biotechnology was important<br />
for our privilege to operate in<br />
Brazil. It was also important for<br />
farmers who wanted to grow<br />
crops with our traits. Because<br />
some farmers had been growing<br />
seed with the Roundup Ready<br />
trait illegally, a new law was<br />
needed to provide a legal<br />
means for purchasing and<br />
selling seed with biotech traits.<br />
The <strong>Monsanto</strong> Brazil team, in<br />
compliance with our business<br />
conduct policy, established<br />
dialogue with community<br />
members, scientists, industry<br />
leaders, policy decision makers,<br />
and others to help<br />
them learn about<br />
biotechnology. The<br />
team scheduled open meetings<br />
to present studies and reports;<br />
participated in public hearings,<br />
workshops, and seminars;<br />
and provided information to<br />
stakeholders.<br />
This dialogue increased<br />
public awareness and<br />
understanding of biotechnology<br />
in Brazil. As a result,<br />
the Brazilian Senate modified<br />
the 2003 bill to give a technical<br />
government committee the<br />
power to grant biotech<br />
approvals. The president of<br />
Overcoming Counterfeit Bollgard Seeds in Gujarat, India<br />
Many farmers in the Rajkot district of India’s Gujarat<br />
state live in poverty, producing barely enough to<br />
subsist. They have limited access to new agronomic<br />
practices and technology. Some local farmers had<br />
been sold illegal or counterfeit Bollgard seed. As<br />
a result, many farmers had negative impressions of<br />
Bollgard and other modern agricultural products.<br />
A <strong>Monsanto</strong> sales manager<br />
(featured left) realized that<br />
by sharing information<br />
about legitimate Bollgard<br />
and good agronomic practices,<br />
he and his team<br />
could help the farmers<br />
while demonstrating the<br />
value of the products. The<br />
team met with 400 farmers<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 39<br />
Brazil signed the bill into law<br />
in 2005.<br />
Now, biotech products can be<br />
developed for local agricultural<br />
needs, which will allow Brazilian<br />
growers to compete equitably<br />
with other world regions.<br />
Farmers in Brazil can legally<br />
enjoy the benefits of biotech<br />
crops. Finally, the law allows<br />
Brazilian farmers to use more<br />
sustainable methods, which<br />
provide environmental<br />
benefits for all.<br />
from 25 villages to discuss the benefits of Bollgard<br />
technology, the difference between real Bollgard<br />
and imposter seeds, and good crop management<br />
practices for cotton. The team invited government<br />
officials, academic scientists, and retailers to these<br />
meetings to inform them of the farmers’ situation.<br />
With proper training, Bollgard can benefit<br />
resource-poor farmers as much or more than<br />
farmers with sufficient resources. The Rajkot<br />
farmers who tried Bollgard are seeing increased<br />
yields; they anticipate a substantial increase in<br />
their income. Better crops will allow them to<br />
move toward financial self-sufficiency and to<br />
give a better life to their families. In addition,<br />
the project respects the farmers by empowering<br />
them with knowledge to be informed consumers.
40 TAKING ACTION<br />
Stewardship and Integrity<br />
Overseeing <strong>Monsanto</strong>’s work are many internal teams who vigilantly<br />
examine our research and development, products and processes to<br />
make certain that we are obeying the law, meeting <strong>Monsanto</strong>’s high<br />
stewardship standards, and operating with integrity in accordance with<br />
our Pledge values.<br />
Various teams focus on product stewardship from<br />
lab to field: financial stewardship to ensure that<br />
financial standards are met; environmental, safety<br />
and health stewardship to protect the safety of our<br />
<strong>2006</strong> BIOTECH ADVISORY COUNCIL MEMBERS<br />
(as of September 1, <strong>2006</strong>)<br />
TOM EWING, former U.S. Congressman<br />
from Illinois, serves as chair of the<br />
<strong>Monsanto</strong> Grower Council<br />
RUTH ONIANG’O, founder, Rural<br />
Outreach Program, Nairobi,<br />
editor-in-chief, African Journal of<br />
Food, Agriculture, Nutrition and<br />
Development, member of the<br />
Kenyan Parliament<br />
RICHARD MOTT, vice president<br />
for international policy at the<br />
World Wildlife Fund<br />
ROBERT PAARLBERG, professor of<br />
political science at Wellesley College,<br />
associate and visiting professor of<br />
government at Harvard University<br />
CARLO LOVATELLI, director,<br />
corporate affairs, Bunge Group<br />
VASANT GANDHI, chair of the Centre<br />
for Management in Agriculture,<br />
Indian Institute of Management,<br />
Ahmedabad, India<br />
CAROLE PIWNICA, attorney, food<br />
regulations, mergers and acquisitions,<br />
EU and US.<br />
people, communities and the environment; and<br />
societal engagement to consider whether we are<br />
doing the right things and doing them right.<br />
Biotech Advisory Council Shares<br />
Important Perspectives<br />
<strong>Monsanto</strong>’s Biotech Advisory Council was formed<br />
in 2001 to help us better understand how our<br />
decisions were affecting people around the world.<br />
In the early days, the council reviewed recent<br />
activities and provided feedback. As the council<br />
and <strong>Monsanto</strong> developed a stronger working<br />
relationship, the focus shifted from the past to<br />
the future and how best to apply our expertise<br />
and resources to meet the challenges ahead.<br />
Recent topics included important products in our<br />
research pipeline, which led to our commitment<br />
to share drought tolerance technology in Africa.<br />
Discussions about human rights were considered<br />
in <strong>Monsanto</strong>’s human rights policy. As more<br />
countries approve biotech products, we continue<br />
to discuss evolving public expectations.<br />
Product Stewardship<br />
We take the stewardship of our products seriously.<br />
Product stewardship is the legal, ethical, and moral<br />
obligation to ensure that our products and technologies<br />
are safe and environmentally responsible.<br />
It is a component of Product Life Cycle Stewardship,<br />
which includes product introduction, stewardship<br />
of products in the marketplace, and effective<br />
discontinuation of outdated technology.
We are expanding and integrating our various<br />
global product stewardship efforts as we meet the<br />
challenge of an increasing number of biotechnology<br />
trait launches around the world. In 2005, we formed<br />
a stewardship operations team and created<br />
regional stewardship teams that are adapting our<br />
stewardship processes to their local situations.<br />
Over the past two years, we established the requirement<br />
for a product stewardship checklist for each<br />
new product launch, verifying that stewardship<br />
milestones are met throughout the product life<br />
cycle. Completion of the checklist helps confirm<br />
that our stewardship processes are followed and<br />
documented before launch.<br />
Stewardship is the shared responsibility of<br />
<strong>Monsanto</strong>, our licensees, and our grower<br />
customers. We want to ensure that our<br />
products continue to be used properly.<br />
By following product life cycle stewardship<br />
processes, we stand behind our products<br />
from start to finish.<br />
Stewardship of Agricultural<br />
Herbicide Products<br />
Responsible development, manufacture, and<br />
use of agricultural herbicide products such as<br />
Roundup agricultural herbicide is important to<br />
us. <strong>Monsanto</strong> subscribes to the principles of the<br />
American Chemistry Council Responsible Care<br />
Program, the Responsible Care Global Charter,<br />
and the Food and Agriculture Organization of the<br />
United Nations International Code of Conduct on<br />
the Distribution and Use of Pesticides.<br />
We have policies in place to monitor our procedures<br />
as we research, develop, design, manufacture,<br />
market, and dispose of chemical products scientifically<br />
evaluated for product safety and benefits,<br />
are used properly, and do not pose undue risks to<br />
human health or the environment during any stage<br />
of their life cycle.<br />
We conduct product risk assessments in many<br />
areas: toxicology, medical risks, regulatory<br />
approvals, environmental impact, safety, health,<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 41<br />
2,000<br />
Considering safety, health, and agronomic<br />
performance criteria,YieldGard Rootworm corn<br />
was selected from more than 2,000 product<br />
candidates that were evaluated over a<br />
period of 4 years.<br />
Researcher Erin Bell assesses corn hybrids for<br />
drought-tolerant corn in Chesterfield, Missouri.<br />
107<br />
Stewardship is time and labor intensive.<br />
Data collection for just one U.S. regulatory<br />
annual reporting requirement (among many)<br />
for one product requires contributions from<br />
107 <strong>Monsanto</strong> employees.<br />
quality, marketplace stewardship, sales and<br />
marketing, and public relations aspects.<br />
<strong>Monsanto</strong> chemical products are regulated<br />
by the Environmental Protection Agency,<br />
the Food and Drug Administration, and other<br />
relevant agencies in the United States, and<br />
by similar agencies in other nations.<br />
Labels and material safety data sheets for<br />
<strong>Monsanto</strong>’s chemical products are available<br />
through the <strong>Monsanto</strong> website,<br />
www.monsanto.com.
42 TAKING ACTION<br />
Integrity Guides Our Business Conduct<br />
The <strong>Monsanto</strong> Business Conduct Program raises<br />
employee awareness of the importance of integrity.<br />
As our Code of Business Conduct notes, this<br />
program was designed not merely to comply with<br />
the law, but to make certain that our actions reflect<br />
the type of company we want <strong>Monsanto</strong> to be.<br />
The Business Conduct Program helps guide our<br />
employees in doing the right thing. It offers several<br />
Pledge Award Finalist<br />
Global Field-Trial Compliance Protocol<br />
Facilitates Effective Stewardship<br />
Conducting field trial research<br />
with genetically modified crops<br />
can be especially challenging<br />
in developing countries with new<br />
and potentially limited biosafety<br />
frameworks and government<br />
oversight. To encourage effective<br />
and appropriate stewardship in<br />
those situations, the Biotechnology<br />
Stewardship project team<br />
of CropLife International, co-led<br />
by <strong>Monsanto</strong>, developed a compliance<br />
management protocol<br />
for conducting field trials of<br />
genetically modified crops.<br />
The protocol provides general<br />
information and specific technical<br />
guidance to help assure<br />
countries that the<br />
field trials within their<br />
borders will be safe,<br />
environmentally responsible,<br />
and compliant. It serves as<br />
a resource for researchers<br />
and a model for national<br />
guidelines in developing<br />
countries where regulations<br />
do not currently exist. CropLife<br />
International continues to<br />
implement outreach activities.<br />
Through training workshops<br />
and press conferences, it<br />
shares the protocol manual<br />
with international and<br />
regional organizations.<br />
ways for employees to raise questions or concerns<br />
— even anonymously and in various languages.<br />
We have procedures for handling these questions<br />
fairly, and we receive several hundred each year.<br />
Our Business Conduct Office collaborates with<br />
seven regional Business Conduct Working Groups.<br />
We also have a best-practices anti-bribery program,<br />
and robust, multilingual training programs featuring<br />
online modules, in-person presentations, and group<br />
discussions of business conduct case studies. Our<br />
website includes various handbooks and training<br />
materials. We revise and update these materials<br />
regularly. Annually, our employees must certify<br />
compliance with the code and explain any<br />
perceived lapses or violations of the policy.<br />
Through these initiatives, the Business Conduct<br />
team helps all <strong>Monsanto</strong> employees embed integrity<br />
in all they do.<br />
This is one of the first<br />
examples of industry<br />
collaboration in developing<br />
biotechnology best practices<br />
and strategically planning<br />
global outreach. Our goal for<br />
this project is to enable safe,<br />
environmentally responsible,<br />
and legally compliant management<br />
of genetically modified<br />
crop field trials, particularly by<br />
researchers in the developing<br />
world, where the benefits of<br />
agricultural biotechnology<br />
offer so much hope.
Community Contributions<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 43<br />
We believe in strengthening the communities in which we operate.Through<br />
charitable giving, employee volunteer efforts, and collaboration with local<br />
organizations, <strong>Monsanto</strong> people take action to help others in need.<br />
Helping in Our Communities<br />
through Philanthropy<br />
<strong>Monsanto</strong>’s philanthropic efforts are spearheaded<br />
by the <strong>Monsanto</strong> Fund, which supports organizations<br />
and programs as varied as the places around<br />
the globe where we do business. The <strong>Monsanto</strong><br />
Fund’s goal is to improve the lives of people by<br />
bridging the gap between their needs and their<br />
resources. We provide support in four areas:<br />
1. Science education, with grants to communities<br />
near <strong>Monsanto</strong> facilities for programs that<br />
support science literacy.<br />
2. Helping families learn more about sustainable<br />
agriculture and ways to improve nutrition,<br />
including research about alleviating vitamin<br />
deficiency and reducing the impact of pests<br />
on subsistence crops.<br />
3. Work that benefits the environment, including<br />
programs that promote environmental education<br />
and awareness, improve water quality, protect<br />
wildlife habitats, and encourage conservation.<br />
4. Community efforts, including arts and cultural<br />
events, local school projects, human needs<br />
programs, and community services projects.<br />
The <strong>Monsanto</strong> Fund’s total contributions for<br />
2005 were $12.6 million. The amount given to<br />
organizations outside the United States during<br />
that period was $4.9 million. More information<br />
on charitable contributions is available in the<br />
2004-05 <strong>Monsanto</strong> Fund Global Contributions<br />
Report or at www.monsantofund.org.<br />
UPPER: A smallholder farmer in Butere-Mumias, Kenya,<br />
participates in a dairy production program supported by<br />
the <strong>Monsanto</strong> Fund.<br />
MAJOR CONTRIBUTIONS BY WORLD AREA<br />
BY THE MONSANTO FUND<br />
NORTH AMERICA<br />
Habitat for Humanity Winnipeg . . . . . . . . . . . . . Canada<br />
Nature Conservancy . . . . . . . . . . . . . . . . . United States<br />
National Fund for the<br />
U.S. Botanical Garden. . . . . . . . . . . . . . . . United States<br />
SOUTH AMERICA<br />
Agro-Technical Institute “Margarita<br />
O’Farrell De Maguire”. . . . . . . . . . . . . . . . . . . . Argentina<br />
Club Rotario Bogatá-Laureles . . . . . . . . . . . . . Colombia<br />
Fundação Arthur Bernardes . . . . . . . . . . . . . . . . . Brazil<br />
EUROPE/AFRICA<br />
American Red Cross/<br />
Kenyan Red Cross . . . . . . . . . . . . . . . . . . . . . . . . . . Kenya<br />
Friends of the World Food Program . . . . . . . . . Malawi<br />
International Federation<br />
for Home Economics . . . . . . . . . . . . . . . . . . . . . Moldova<br />
ASIA/PACIFIC<br />
International Rice and<br />
Research Institute . . . . . . . . . . . . . . . . . . . . . Philippines<br />
Helen Keller International . . . . . . . . . . . . . . . Philippines<br />
Shoes for Hope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . India
44 TAKING ACTION<br />
The <strong>Monsanto</strong> Fund pledged $1 million<br />
to relief efforts and set up an employeeto-employee<br />
donation program.<br />
$ 1million<br />
Emergency responders and volunteers help rescue<br />
people trapped after the flooding of hurricane Katrina<br />
in New Orleans, Louisiana.<br />
After Katrina, Employees<br />
Help Restore Plant, Community,<br />
and Each Other’s Lives<br />
Hurricane Katrina, one of the largest natural<br />
disasters ever to strike the United States, affected<br />
the lives of millions of people in the Gulf Coast<br />
region. More than 204,000 homes sustained<br />
damage from the August 2005 storm. 39 <strong>Monsanto</strong>’s<br />
Roundup agricultural herbicide manufacturing<br />
plant in Luling, Louisiana, is located just 25 miles<br />
upriver from New Orleans, and its operations and<br />
employees were affected. Our teams took quick<br />
action to prepare for and respond to the storm,<br />
which helped to limit its effect on the plant’s operations,<br />
our employees, and the Luling community.<br />
After the storm passed, our employees looked for<br />
other ways to help coworkers, their families, and<br />
other New Orleans community members.<br />
As the storm approached, the Luling team activated<br />
its hurricane plan and began shutting down production.<br />
The plant was safely shut down and secured<br />
within 24 hours. Damage to the plant from the<br />
hurricane was moderate. However, restarting the<br />
plant was an unprecedented challenge. The plant<br />
was affected by the loss of electricity across the<br />
region, limited generator power, a lack of transportation<br />
and fuel in the region, and no communications.<br />
To address these challenges, a Hurricane Katrina<br />
Crisis Team was formed. Through its efforts, the<br />
plant was back to full operation four days after<br />
power was restored.<br />
Just as important, however, was the well-being of<br />
our employees. Immediately following the storm, a<br />
team began locating employees who had scattered<br />
throughout the country. Employee contacts were<br />
facilitated through our Internet site. An extensive<br />
network of employee-to-employee contacts<br />
emerged. All 659 employees were located within<br />
one week. Some employees even helped with the<br />
overall rescue of New Orleans residents.<br />
Eighty-two Luling employees and their families<br />
could not live in their homes because of extensive<br />
damage. Our teams worked to provide housing<br />
assistance to those who were displaced. The<br />
<strong>Monsanto</strong> Fund pledged $1 million to regional<br />
relief efforts and set up an employee-to-employee<br />
donation program. Through this program, <strong>Monsanto</strong><br />
employees and retirees gave $95,000 to aid their<br />
colleagues. Luling employees have also been<br />
helping each other. The Luling Plant Volunteer<br />
Corps, a team of more than 75 employees and<br />
family members, have been helping others with<br />
demolition, cleanup, and repair of homes<br />
damaged by the hurricane.<br />
It may be many years before the New Orleans<br />
area fully heals, but the efforts of our employees<br />
in Luling and around the world showed that we<br />
pull together in a crisis. Because of this teamwork,<br />
<strong>Monsanto</strong>’s Roundup business, our employees’<br />
families, and the Luling community were better<br />
able to weather the storm.
Pledge Award Winners<br />
Employee Volunteer Program Helps South Korean<br />
Smallholder Farmers during a Labor Shortage<br />
Like young people in many other<br />
developed nations, young South<br />
Koreans have been leaving<br />
farming for work in the cities.<br />
This has created a labor<br />
shortage in the Korean agricultural<br />
industry, especially among<br />
small family-owned farms.<br />
Without additional labor, many<br />
of these farms are in danger<br />
of going out of businesses.<br />
To help alleviate the situation,<br />
the Seminis Human Resources<br />
and Sales teams in South Korea<br />
organized a volunteer effort<br />
among employees to help local<br />
farms prepare for the upcoming<br />
season. More than 230<br />
employees volunteered and<br />
worked almost 2,000 hours<br />
with farmers in Daegu, a<br />
region especially hard hit<br />
by labor shortages.<br />
In addition to helping the local<br />
farmers with some of their most<br />
labor-intensive tasks, the project<br />
benefited the local community.<br />
Ensuring that the farmers were<br />
well prepared for the melongrowing<br />
season helped to<br />
preserve the local agricultural<br />
industry. The project provided<br />
many opportunities for dialogue<br />
between Seminis employees<br />
and the farmers, increasing<br />
their understanding of each<br />
others’ concerns. By volunteering<br />
to help during a time<br />
of need, the team got to know<br />
the local farmers as partners<br />
in the agriculture business.<br />
School Renewal Project Improves Educational Opportunities in Tlajomulco, Mexico<br />
Around the world, a quality education is seen<br />
as one of the most important tools to improve<br />
children’s chances for success. Nonetheless,<br />
schools in many communities struggle because<br />
of a lack of resources. In early 2005, employees<br />
of our Tlajomulco Breeding Center in San Miguel<br />
Cuyutlán, Mexico, began a volunteer project to<br />
renovate a school and to provide students with<br />
a better learning environment.<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 45<br />
The team selected the Manuel López Cotilla School,<br />
which was in a state of disrepair and could benefit<br />
from community assistance. Through individual<br />
employee contributions, a grant from the <strong>Monsanto</strong><br />
Fund, and funding from Fondo Unido de Jalisco<br />
(a United Way affiliate), the team raised $9,500 for<br />
the project. The municipal government provided<br />
an additional $4,700. By July, the team replaced<br />
walls and ceilings in classrooms, improved bathrooms,<br />
installed a large water reservoir, connected<br />
the building to the municipal sewer system,<br />
installed new lighting, built a storage room,<br />
and painted the interior.<br />
Because of the team’s efforts, children<br />
in Tlajomulco now have a safe, inviting,<br />
and functional environment for learning,<br />
which increases their chances for success.<br />
The program has also inspired many companies<br />
operating in the area to adopt other schools.
46 TAKING ACTION<br />
Investing in Our People<br />
The <strong>Monsanto</strong> Pledge acknowledges the importance of a positive, empowering<br />
culture that allows employees to achieve their highest potential, to<br />
embrace shared goals, and to support each other along the way. Our Pledge<br />
commitments guide our public behavior.They also provide a framework<br />
for interaction between leadership and employees. Ultimately, all <strong>Monsanto</strong><br />
people are responsible for the company’s success.<br />
People Strategy Raises Our<br />
Competitive Advantage<br />
<strong>Monsanto</strong>’s people strategy is tied to our business<br />
strategy. It is designed to help us fulfill our Pledge<br />
to create a great place to work. It advances our<br />
ability to attract, develop and retain the talent we<br />
need to achieve our business objectives. It also<br />
creates a high standard of excellence for our<br />
people processes and enables us to measure<br />
the effectiveness of those processes.<br />
We strive to select, develop, and retain employees<br />
who exhibit five global competencies: relationships<br />
and networks, courage and candor, agility, initiative<br />
and foresight, and results orientation. We created<br />
new interview guides based upon these<br />
PHOTO BELOW: The <strong>Monsanto</strong> Fund provided a<br />
$60,000 grant for, and more than 70 <strong>Monsanto</strong><br />
Canada employees volunteered to build,<br />
this Habitat for Humanity home<br />
in Winnipeg, Canada.<br />
RECENT HONORS<br />
The Scientist . . . . . . . . . . . . Top 10 Best Places to Work<br />
Computerworld . . . . . . . 100 Best Places for IT Workers<br />
St. Louis<br />
Business Journal . . . . . . . . . . . . . . . Best Places to Work<br />
CIO Magazine . . . . . . . . . . . . <strong>2006</strong> CIO 100 Recognition<br />
Mexico . . . . . . . . . . . . . . . . . . . . . . . . Best Places to Work<br />
Deloitte<br />
(South Africa) . . . . . . . . . . . Best Companies to Work For<br />
Science . . . . . . . . . . . . . . . . . . . . . . . . 2005 Top Employer<br />
R&D Magazine . . . . . . . . . . . . . . . . . . . . . . . . . . . R&D 100
competencies to ensure consistent interview<br />
processes worldwide, and we have created a<br />
People Leader Learning Series to help people<br />
managers and team leaders foster success among<br />
their direct reports. In addition, to help networks<br />
and cross-functional teams work more effectively,<br />
we offer tools for decision-making, goal setting and<br />
conflict resolution.<br />
Our commitment to diversity is central to our people<br />
strategy. To sustain and extend our business across<br />
all world areas, we need diverse business perspectives<br />
and the flexibility to work with a variety of<br />
people wherever we conduct business. Toward<br />
that goal, we encourage and support a variety of<br />
employee-organized affinity groups and people<br />
teams in functional and technical areas. A common<br />
focus of these teams is ongoing professional<br />
development and technical education.<br />
Pledge Award Finalist<br />
IT Diversity Program Helps Employees Facilitate<br />
Dialogue and Create a Great Place to Work<br />
In 2004, our Information<br />
Technology organization<br />
began a diversity outreach<br />
effort among its employees<br />
and others within the company<br />
to further our commitment to<br />
diversity. The program is a<br />
monthly lunchtime speaker<br />
series, conducted by<br />
employees who present<br />
information on relevant topics<br />
to increase their colleagues’<br />
understanding of our diverse<br />
work force.<br />
The team invites <strong>Monsanto</strong><br />
employees from around the<br />
world to share their cultures,<br />
perspectives, and experiences<br />
with co-workers. Through the<br />
use of networking software<br />
and telecommunication technology,<br />
the program is easily<br />
accessible to audiences<br />
around the world. Audience<br />
members use this program<br />
as a forum for dialogue<br />
about special topics and<br />
cultural differences. The<br />
program has helped build<br />
many new personal and<br />
professional networks.<br />
Employees understand and<br />
value diverse viewpoints more<br />
when they learn about their<br />
colleagues’ personal stories,<br />
cultural values, and geographic<br />
Benefits and Compensation<br />
Support Our Strategy<br />
MONSANTO <strong>2006</strong> PLEDGE REPORT 47<br />
We believe that employee compensation, recognition,<br />
and benefits are integral to our business<br />
success. Our compensation and benefits philosophy<br />
is to provide competitive rewards to attract<br />
and retain the best talent and to foster a greater<br />
sense of ownership in the company. We have an<br />
incentive reward program at the individual, team<br />
and business levels. We also realize that people are<br />
most productive and happy when they have time<br />
and latitude to enjoy life outside of the company with<br />
family and friends. To encourage a good balance<br />
between work and home, in many locations we offer<br />
flexible hours, job sharing, a generous vacation<br />
policy, and in some places on-site day care and<br />
fitness centers. 40<br />
backgrounds. This exchange<br />
helps our employees become<br />
more likely to understand<br />
and be sensitive to members<br />
of diverse communities. In<br />
addition to creating a great<br />
place to work it increases the<br />
diversity and cultural agility of<br />
our work force.
48 THE SUM OF OUR COMMITMENTS<br />
Endnotes<br />
1. United Nations Population Division. (n.d.). World population<br />
prospects: The 2004 revision. Retrieved September 1, <strong>2006</strong><br />
from http://esa.un.org/unpp/<br />
2. World Food Programme. (2002, March). Reducing poverty and hunger:<br />
The critical role of financing for food, agriculture and rural development.<br />
Presented at the International Conference on Financing for Development,<br />
Monterrey, Mexico. Rome: Author.<br />
3. Energy Information Administration. (<strong>2006</strong>, June). International energy<br />
outlook <strong>2006</strong>. (DOE/EIA-0484). Washington, DC: U. S. Government<br />
Printing Office.<br />
4. United Nations Environment Programme. (2003, November).<br />
How will global warming affect my world? Geneva: Author.<br />
5. World Health Organization. (n.d.) Cardiovascular disease: Prevention<br />
and control. Retrieved September 1, <strong>2006</strong> from http://www.who.int/<br />
dietphysicalactivity/publications/facts/cvd/en/index.html<br />
6. Friends of the World Food Program. (2005, August 26).<br />
<strong>Monsanto</strong> Fund donates US$1 million to support WFP operations<br />
in Malawi [News release].<br />
7. Wilkinson, J. (2002, September). Statement of the International<br />
Federation of Agricultural Producers. Presented at the World Summit<br />
on Sustainable Development, Johannesburg, South Africa.<br />
8. International Food Information Council. (2004, May).<br />
Agriculture and food production. Retrieved September 1, <strong>2006</strong><br />
from http://ific.org/food/agriculture/index.cfm<br />
9. U.N. Department of Economic and Social Affairs, Statistics Division.<br />
(n.d.) Progress towards the Millennium Development Goals, 1990-2003.<br />
Retrieved September 1, <strong>2006</strong> from http://www.un.org/specialrep/ohrlls/ldc/MDGs/Goal_1-final.pdf<br />
10. Corey, C. (2005, December 28). U.S. company donates maize seed<br />
to farmers in Malawi: <strong>Monsanto</strong>’s contribution expected to feed more<br />
than 1 million people. U.S. State Department. Washington, DC: U.S.<br />
Government Printing Office.<br />
11. Worldwatch Institute. (<strong>2006</strong>). Biofuels for transportation: Global potential<br />
and implications for sustainable agriculture and energy in the 21st<br />
century. Washington, DC: Author.<br />
12. ProExporter Network. (March, <strong>2006</strong>). [Untitled slide presentation].<br />
Presented at the Fifteenth annual world grain workshop and market<br />
outlook. Kansas City, MO.<br />
13. Bellantoni, C. (<strong>2006</strong>, May 12). Democrats push ethanol growth.<br />
Washington Times.<br />
14. Daschle, T., and Khosla, V. (<strong>2006</strong>, May 8). Miles per cob. New York Times.<br />
15. U.S. Energy Information Administration. (n.d.). Ethanol energy timeline.<br />
Retrieved September 1, <strong>2006</strong> from http://www.eia.doe.gov/kids/history/<br />
timelines/ethanol.html<br />
16. Farrell, A. E., Plevin, R. J., Turner, B. T., Jones, A. D., O’Hare, M., and<br />
Kammen, D. M. (<strong>2006</strong>). Ethanol can contribute to energy and environmental<br />
goals. Science, 311, pp. 506-508.<br />
17. Hill, J, Nelson, E., Tilman, D., Polansky, S., and Tiffany, D. (<strong>2006</strong>).<br />
Environmental, economic, and energetic costs and benefits of biodiesel<br />
and ethanol biofuels. Proceedings of the National Academy of Sciences.<br />
(PNAS 103: 11206-11210).<br />
18. Zhang, Y., Dubé, M. A., McLean, D. D., and Kates, M. (2003).<br />
Biodiesel production from waste cooking oil: 2. Economic assessment<br />
and sensitivity analysis. Bioresource Technology, 90, 229-240.<br />
19. Lal, R., Kimble, J. M., Follett, R. F., and Cole, C. V. (1998). The potential<br />
of U.S. cropland to sequester C and mitigate the greenhouse effect.<br />
Chelsea, MI: Ann Arbor Press.<br />
20. Intergovernmental Panel on Climate Change. (2000). Land: Use, change,<br />
and forestry. Cambridge: University Press.<br />
21. No-till CO2 sequestration calculation based on the fact that a gallon<br />
of gasoline weighs 6.2 lbs., contains 5.39 lbs. of carbon, and emits<br />
19.8 lbs. of CO2 when burned. Retrieved September 1, <strong>2006</strong> from:<br />
Conservation Technology Information Center.<br />
22. United Nations Environment Programme. (<strong>2006</strong>). Global Environmental<br />
Outlook Yearbook, <strong>2006</strong>. Nairobe, Kenya: Author.<br />
23. United Nations Environment Programme. (<strong>2006</strong>).<br />
Our Planet, 16, 3. pp. 16-17.<br />
24. World Wildlife Fund. Agriculture. Retrieved September 1, <strong>2006</strong> from<br />
http://www.worldwildlife.org/cci/agriculture.cfm<br />
25. Runge, C. F. (2002). King corn: The history, trade, and environmental<br />
consequences of corn (maize) production in the United States.<br />
Washington, DC: World Wildlife Fund.<br />
26. Pesticides registered by the U.S. Environmental Protection Agency will<br />
not cause unreasonable adverse effects to humans or the environment<br />
when used in accordance with label directions.<br />
27. Rosenberg, N. J. Izaurralde, R. C., and Malone, E. L. (1998). Proceedings<br />
of the St. Michael’s workshop on soil sequestration. In Soil: Science,<br />
monitoring, and beyond. Columbus, OH: Battelle Press.<br />
28. Center for Science in the Public Interest. (2004). TransFreeAmerica<br />
campaign launched. Retrieved September 1, <strong>2006</strong> from<br />
http://www.cspinet.org/new/200405181.html<br />
29. U.S. Department of Health and Human Services and U.S. Department of<br />
Agriculture. (2005). Dietary guidelines for Americans, 2005. Washington,<br />
DC: U.S. Government Printing Office.<br />
30. Trans fat content of processed foods and vegetable oils is likely to<br />
change as the food industry continues to reformulate products.<br />
31. U.S. Food and Drug Administration. (<strong>2006</strong>). Questions and answers<br />
about trans-fat nutrition labeling. Retrieved September 1, <strong>2006</strong> from<br />
http://www.cfsan.fda.gov/~dms/qatrans2.html<br />
32. Cargill. (2005, October 6). Cargill to process <strong>Monsanto</strong>’s Vistive lowlinolenic<br />
soybeans [News release]. Retrieved September 1, <strong>2006</strong>, from<br />
http://www.cargill.com/news/news_releases/2005/051006_vistive.htm<br />
33. American Heart Association. (n.d.). Trans Fatty Acids. Retrieved<br />
September 1, <strong>2006</strong> from http://www.americanheart.org/<br />
presenter.jhtml?identifier=3030450<br />
34. <strong>Monsanto</strong> was first incorporated as a stand-alone subsidiary of<br />
Pharmacia in 2000; it was then spun off as a separate company in 2002.<br />
35. Does not include <strong>2006</strong> acquisitions.<br />
36. Horan, W. (2002, May). Farmers as consumers: Making choices.<br />
Presented at Foods for Health: Vol. 14, The integrating agriculture,<br />
medicine, and food for future health. University of Minnesota.<br />
37. James, C. (2005). Executive summary of global status of commercialized<br />
biotech/GM crops: 2005. ISAAA Briefs, 34. Ithaca, NY: ISAAA.<br />
38. Brookes, G., and Barfoot, P. (2005). GM crops: The global economic<br />
and environmental impact: The first nine years 1996-2004.<br />
AgBioForum, 8, 187-196.<br />
39. Thomasson, D. (<strong>2006</strong>, August 29). One year forward: Gulf Coast<br />
revival will take longer than expected. Evansville Courier and Press.<br />
40. Details of benefits vary by country. For specific information on<br />
employee benefits, please contact the <strong>Monsanto</strong> human resources<br />
office in the particular country.
About <strong>Monsanto</strong><br />
<strong>Monsanto</strong> is a leading provider of agricultural solutions<br />
to growers worldwide. <strong>Monsanto</strong>’s employees provide topquality,<br />
cost-effective, integrated solutions to help farmers<br />
improve their productivity and produce better quality foods.<br />
For more information about <strong>Monsanto</strong> — its products,<br />
leadership, and Pledge commitments — visit<br />
www.monsanto.com.<br />
Trademarks and service marks owned or licensed by<br />
<strong>Monsanto</strong> and its subsidiaries are indicated by special<br />
type throughout this publication.<br />
Unless otherwise indicated by the context, references to<br />
Roundup products in this report mean Roundup branded<br />
herbicides and other glyphosate-based herbicides; all<br />
such references exclude lawn-and-garden products.<br />
This report is printed on recycled paper that contains at<br />
least 10 percent postconsumer waste with soy-based inks.<br />
© <strong>2006</strong> <strong>Monsanto</strong> Company
’06<br />
Pledge Report<br />
<strong>Monsanto</strong> Company,<br />
800 North Lindbergh Boulevard<br />
St. Louis, Missouri 63167, U.S.A.<br />
www.monsanto.com<br />
MAG06007<br />
We Want to Hear From You<br />
Tell us what you think. Please send your<br />
thoughts to Diane Herndon via email:<br />
diane.b.herndon@monsanto.com.