FMC : ESG Investor Presentation 2020

ESG Investor Presentation

September 2020

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements made in this presentation are forward- looking statements. In some cases, you can identify these statements by such words or phrases as "will likely result," "is confident that," "expect," "expects," "should," "could," "may," "will continue to," "believe," "believes," "anticipates," "predicts," "forecasts," "estimates," "projects," "potential," "intends" or similar expressions identifying "forward-looking statements" within the meaning of the Private Securities

Litigation Reform Act of 1995, including the negative of those words and phrases. Such forward-looking statements are based on management's current views and assumptions regarding future events, future business conditions and the outlook for the company based on currently available information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward- looking statement. Currently, one of the most significant factors is the potential adverse effect of the current COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of FMC, which is substantially influenced by the potential adverse effect of the pandemic on FMC's customers and suppliers and the global economy and financial markets. The extent to which COVID-19 impacts us will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. Additional factors include, among other things, the risk factors and other

cautionary statements included within FMC's 2019 Form 10-K and FMC's Form 10-Q for the quarter ended June 30, 2020, as well as other

SEC filings and public communications. Moreover, investors are cautioned to interpret many of these factors as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. FMC cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Forward-looking statements are qualified in their entirety by the above cautionary statement. FMC undertakes no obligation, and specifically disclaims any duty, to update or revise any forward-looking statements to reflect events or circumstances arising after the date on which they were made, except as otherwise required by law.

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WHAT IS SUSTAINABILITY?

MEETING THE NEEDS OF THE PRESENT WITHOUT COMPROMISING THE NEEDS OF THE FUTURE

The Brundtland Report (1987)

ENVIRONMENTAL		SOCIAL		GOVERNANCE

►	Energy Use	►	Gender Equality	►	Transparent Governance
►	GHG Emissions	►	Labor Rights	►	Institutional Trust
►	Water Use	►	Diversity and Inclusion	►	Risk Management
►	Waste Generated	►	Human Rights	►	Ethics and Compliance
►	Maintaining Biodiversity	►	Right to Education	►	Board and Executive Diversity

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FMC's ORIGINAL SUSTAINABILITY GOALS

(These were set in 2015; new goals were set in October 2019)

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SAFETY IS A CORE VALUE FOR FMC

• From June 2019 through October 2019, the company had zero injuries, the longest stretch in FMC history. Since 2012, we have made significant improvements in our safety performance.
• Our Total Recordable Incident Rate (TRIR) in 2019 was 0.13. In 2020, it is 0.08 YTD-August.
• Our TRIR is among the lowest in the industry
  globally and in the upper decile of peer companies in North America 1

1 American Chemistry Council

2019 SAFETY PERFORMANCE

2025 Goal:

<0.1 Total Recordable Incident Rate (TRIR)

0.63
		0.51	0.51
	0.41
TRIR				0.22
				0.18
						0.13
						0.11	0.08
2012	2013	2014	2015	2016	2017	2018	2019	YTD
								2020*

* Through August 31, 2020

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DIVERSITY AND INCLUSION

OUR D&I AMBITION STATEMENT

SEE YOURSELF IN FMC,

BE YOURSELF IN FMC

We strive to be an inclusive workplace where our employees reflect the community, are valued, find purpose in their work, and grow and contribute to their fullest potential.

"Diversity & Inclusion is critical for everyone to feel engaged and have a sense of belonging. It matters not only for current employees but also for the next generation of employees. It is a key differentiator for us. We focus on Diversity & Inclusion, not just because creating a diverse and inclusive workforce is the right thing to do, but because it makes sound business sense. It is important for our future success."

Mark Douglas, President and Chief Executive Officer

In 2019, we made significant progress on strengthening our culture of diversity and inclusion at FMC. That commitment continues to drive our ability to:

Identify and develop		Create an inclusive
	culture where our
the best talent
	workforce can thrive

Advocate inclusive		Integrate diversity
	and inclusion in our
behaviors
	policies and practices

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ANNUAL SHAREHOLDER OUTREACH

Since 2016, FMC's Board has conducted an annual outreach with our shareholders

In January 2020, the focus was on ESG

TOPICS FROM JANUARY 2020 OUTREACH

• Financial materiality, assessing ESG risks (climate change)
• Sustainability of our current products and R&D pipeline
• Investors struggling to compare companies' ESG data:
  SASB and TCFD frameworks may help
• Raters like MSCI, ISS, Sustainalytics are just one piece of the puzzle; many gaps in that research
• Supported decision to split CEO and chairman roles on the Board (as part of CEO succession)

TOPICS OF PRIMARY INVESTOR

INTEREST 2016-2020

• Executive compensation
• Board diversity & refreshment
• Sustainability
• CEO succession planning
• Proxy disclosures

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FMC'S NEW 2025/2030

SUSTAINABILITY GOALS

INNOVATION

SAFETY

COMMUNITY ENGAGEMENT

Innovation is in our DNA. With strong capabilities in our R&D organization, we create innovative solutions to address food security, one of the largest global challenges, without compromising the environment. We commit to creating products that are consistently better for the planet than any that currently exists in the market.

At FMC, people come first. We strive for an injury-free workplace, where every employee returns home the same way they arrived. We encourage a culture of open reporting, so we can learn from our mistakes and work towards continuous improvement in behaviors and processes. A TRIR of less than 0.1 is industry leading performance.

We are committed to enriching the communities where we work and live. If surrounding communities thrive, so do we. To monitor this, each FMC-owned manufacturing site and select R&D sites report on their community activities quarterly.

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COMMUNITY ENGAGEMENT

Barra Mansa, Brazil - Tree planting with	Singapore - Willing	Philadelphia, Pennsylvania -
students from University of the State of São	Hearts Soup Kitchen	Philadelphia Science Carnival
Paulo Guaratinguetá

FMC organized a total of 240 community events across the world in 2019.

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FMC'S NEW 2025/2030

SUSTAINABILITY GOALS CONTINUED

ENVIRONMENTAL FOOTPRINT

GOALS BY 2030 (2018 base year)

Energy intensity is calculated as the total amount of energy utilized (gigajoule) per metric tonne of product.

GHG intensity is calculated as the total amount of GHGs (tonnes CO2 equivalent) per metric tonne of product.

Water-use intensity is calculated as the total amount of water utilized (cubic meter) in high-risk locations per metric tonne of product.

Waste disposed intensity is calculated as the total amount of waste disposed (metric tonne) per metric tonne of product. Due to anticipated shifts in FMC's product mix and expected growth through 2030, waste disposed intensity is expected to increase by

55 percent. Therefore, we will need to decrease our waste disposed intensity by 55 percent to maintain the 2018 base year intensity.

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FMC IS COMMITED TO MAKING PROGRESS ON TWO UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS

GOAL #2: Zero Hunger

GOAL #15: Life on Land

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FMC's SUSTAINABILITY ASSESSMENT TOOL…

	Food Expectations
	10
Environmental	5	Health & Safety
Consciousness	0	Expectations
	-5

Land Competition

Scarce Resources

Climate Change

Benchmark		Active Ingredient or Product

Note: A sustainably advantaged product is one that positively impacts at least one

of the six major Global Challenges: Food Expectations, Health and Safety Expectations, Environmental Consciousness, Climate Change, Scarce Resources and Land Competition, but does not retreat in any of the five other areas.

…Drives Innovation

Our target is to advance one new patented synthetic active ingredient every year from the discovery pipeline to development.

• In 2019, we advanced two new products to development:
• • Herbicide featuring a new mode of action that controls a broad spectrum of broadleaf and grass weeds
  • Insecticide that controls insects such as aphids that can destroy high-value crops
• Today, we have 22 new proprietary molecules in our award-winning synthetic pipeline, with 14 featuring new modes of action for the crop to which they are applied.

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FMC DEVELOPS TALENT OBJECTIVES TO IMPROVE DIVERSITY

Percentage of Black &	Percentage of Women
African Americans in	in FMC's Global
FMC's U.S.Workforce	Workforce
To match	14%	50%
U.S. talent

population

9%30%

2019

2027

2019

2027

OUR D&I AMBITION STATEMENT

SEE YOURSELF IN FMC,

BE YOURSELF IN FMC

We strive to be an inclusive workplace where our employees reflect the community, are valued, find purpose in their work, and grow and contribute to their fullest potential.

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Appendix - More from Our

Sustainability Report

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2020 SUSTAINABILITY COMMITMENTS

Conduct an extensive shareholder outreach project to better understand how they assess FMC through an ESG lens.

Develop and introduce the sustainability brand to engage both internal and external stakeholders.

Start utilizing Sustainability Accounting Standards Board's (SASB) chemical standard and the Taskforce on Climate-Related Financial Disclosures (TCFD) frameworks for sustainability disclosures.

Summarize baseline Scope 3 GHG emissions for 2019 and externally report the information; determine where there are opportunities to refine the data and reduce the impact.

Develop life cycle assessments for Rynaxypyr® and Cyazypyr® active ingredients.

Incorporate Sustainability in the Capital

Deployment Plan.

Measure our global logistics footprint to better understand and reduce our impacts and risks.

Develop a renewable energy strategy.

Gain further understanding of our suppliers'

sustainability programs.

Conduct biennial Materiality Assessment.

completed

in progress

No started yet

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ABOUT OUR

SUSTAINABILITY REPORT

GLOBAL REPORTING	UNITED NATIONS	EXTERNAL ASSURANCE OF	MATERIALITY
INITIATIVE (GRI)	GLOBAL COMPACT	SUSTAINABILITY DATA

• Our 2019 Sustainability Report and our web-based content at www.FMCsustainability.com have been prepared in accordance with the GRI Standards: Core option. A detailed GRI Content Index can be found on the website

• FMC became a signatory to the UN Global Compact (UNGC) in 2014. This report represents our fifth Communications on Progress in support of the UNGC principles

• FMC engaged ERM Certification and Verification Services to provide limited assurance in relation to specified 2019 environmental (energy, GHG emissions, water and waste disposed) and safety data

• FMC conducts a biennial materiality assessment to determine environmental, social and governance topics that are important to the company
• The assessment also guides our sustainability reporting priorities
• The assessment is conducted through a series of interviews, meetings and surveys with internal and external stakeholders

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STAKEHOLDER ENGAGEMENT HIGHLIGHTS

INVESTORS

• Early in 2020 we engaged with many of our investors to discuss environmental, social and governance (ESG) topics.
• We held 23 calls (representing approximately 45 percent of our shares outstanding) and received positive feedback on our sustainability goals, website, report and outreach efforts on
  ESG
• We received recommendations around additional sustainability reporting frameworks to incorporate into our overall strategy

EXTERNAL SUSTAINABILITY

ADVISORY COUNCIL

• FMC's External Sustainability
  Advisory Council, initiated in November 2017, provides perspectives and objectivity to our sustainability strategy.
• Members of the Council are leaders in agriculture, energy, water, academia and environmental issues. They have broadened our thinking in many areas. Their feedback is vital as FMC continues to evolve and grow.

NON-GOVERNMENTAL

ORGANIZATIONS (NGOs)

• FMC has been working with the Pesticide Action Network (PAN) Europe and UK to provide them with information on FMC's diamide insecticides
• We hope to continue our collaboration with PAN and other NGOs to understand and address any potential concerns they may have and also to keep them informed about FMC's efforts toward delivering sustainable agricultural solutions.

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TALENT MANAGEMENT

LEARNING AND LEADERSHIP

• We strive to consistently maintain our status as one of the top agricultural sciences companies in the world.
• We focus our programs and initiatives on sustaining strong leaders who are committed to engaging and developing their employees, so they can lead competitively, innovate change, improve business performance, and successfully maintain a competitive advantage.
• Three of our signature leadership programs are outlined below.

SCIENCE OF LEADERSHIP

• Equips participants with the skills to challenge others, strategically address change when it occurs within FMC and motivate teams for success
• Improves participants' understanding of the value of working across differences, including communication styles and range of influence
• Encourages participants to think more broadly about their role and how to optimally drive results within
  FMC

ART OF LEADERSHIP

• Increases participants' emotional intelligence and abilities to tackle difficult situations within a global company
• Enhances participants' skills in managing change and empowers leaders within their teams to achieve peak performance
• Ensures participants recognize the opportunities to challenge the status quo through coaching at all levels within the company

KEYS TO LEADERSHIP

• Builds strong and diverse leaders who then can support prolonged growth and deliver results
• Enables our leaders to better understand the balance between managing day-to-day priorities while also leading with vision, inspiration and authenticity
• Increases retention and builds a development culture among leaders

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EMPLOYEE RESOURCE

GROUPS (ERGs)

In 2019, we continued to evolve our ERGs to further align with our business. While strengthening the core ERGs, we expanded and launched three more ERGs: i- Gen (Inter-generational), VIVID (People with Disabilities) and HONOR (Military, Veterans and families).

SPECTRU SPOTLIGHT

Mission: To increase the visibility of LGBTQ+ issues within FMC through education and awareness initiatives. Encourage fellowship, thoughtful dialogue and an inclusive understanding of LGBTQ+ identity through formal and informal interaction and engagement with the FMC community at large.

2019 Highlights:

•

•

•

•

Expanded our healthcare benefits to include domestic partner benefits and transgender inclusive benefits in the U.S.

Organized two "How to be an Ally" awareness sessions as part of our PFLAG national partnership

Participated in the Philadelphia Pride Parade and hosted an FMC booth at the Pride Festival Conducted three sessions during Pride Month to engage allies, friends and parents of LGBTQ+ and

talk about how to be a supportive ally

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DIVERSITY AND INCLUSION ACHIEVEMENTS

HUMAN RIGHTS CAMPAIGN:

100 ON CORPORATE EQUALITY INDEX

FMC earned 100 percent on the Human Rights Campaign Foundation's Corporate Equality Index

FMC received a score of 100 percent on the Human Rights Campaign Foundation's 2020 Corporate Equality Index (CEI), the U.S.'s premier benchmarking survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality. FMC joins the ranks of more than 680 major U.S. businesses that also earned top marks this year.

FMC was ranked 128 out of 500 companies globally on

the Forbes list of The World's Best Employers. The list

is curated by Forbes, in partnership with Statista, a statistical analysis company and is based on 1.4 million employment recommendations pulled from global polls and regional surveys. The global respondents are asked multiple questions regarding their employer and whether they would recommend their company to a friend or family member.

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PLANT HEALTH

BIOLOGICAL CROP PROTECTION PRODUCTS

• Biologicals represent a diverse group of plant protection products derived from microorganisms and other naturally occurring materials
• Today, FMC is working on new bioinsecticides, bionematicides, biofungicides and biostimulants at our European Innovation Center in Hørsholm, Denmark
• These biological products feature new modes of action and excellent sustainability profiles. They can also help plants overcome difficult growing conditions, fight disease and even assist in regulating the plant's uptake of nutrients and use of limited water

EUROPEAN INNOVATION

CENTER, DENMARK

Three years ago, we established our European Innovation Center (EIC) in Hørsholm, Denmark, to accelerate in-house biological discovery and screening. At the EIC, scientists isolate natural microbes from soil and screen them for unique biopesticide or biostimulant solutions. In 2019 we expanded our facility to include state-of-the-art fermentation and downstream processing equipment. The new EIC pilot plant fermenters enable FMC to do our own process development and efficiently scale-up volumes of material for biological evaluation in the field.

Stavros Kalafatakis, Research Scientist, using the newly installed

fermentation processing equipment at EIC, Denmark.

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PRECISION AGRICULTURE

• Growers are now desiring more visibility into the health of their fields and more precise tools to manage their crops
• Our Precision Agriculture solutions enable growers and their advisors to operate more effectively and sustainably through the power of data and machine learning.

ARC™ FARM INTELLIGENCE - Launched in 2020

This proprietary mobile platform is a first in the agricultural industry to deliver real-time data that predicts insect pressure one week in advance with more than 90 percent confidence for key insects to help growers protect yields. For key pests, Arc™ farm intelligence provides pest pressure forecasts based on:

•

•

•

Aggregated historical data Hyper-local weather data Real-time regional pest mapping

Among many other benefits, Arc™ Farm Intelligence can:

• Decrease environmental impact by allowing farmers to spray at the right time to address pest pressure

•

•

Manage infestations before they escalate

Help delay pest resistance issues through more effective and targeted product

application	24

PRODUCT STEWARDSHIP

Product stewardship is a key component of FMC's sustainability core value. We are now focusing on the projects which will help identify any issues and gaps and then work towards successful mitigating solutions. Two important issues being addressed by FMC and CropLife International are training programs for farmers on the importance of wearing personal protective equipment (PPE) when applying products and good management practices for empty product containers.

PRODUCT STEWARDSHIP PROJECTS OVERVIEW

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Product Stewardship Projects

PROJECT SAFFAL

• Fall Armyworm has been a serious concern for farmers throughout India. With no natural predators, the pest has spread to 20 states and has greatly impacted India's corn production, affecting the food security of millions.
• FMC India collaborated with the South Asia Biotechnology Centre to launch Project SAFFAL (Safeguarding Agriculture and Farmers against Fall Armyworm) to educate farmers on FAW. In its first year, Project SAFFAL reached over 7,000 farmers through dedicated training workshops across

11 states and has collaborated with numerous public sector institutions, retailers and students.	An example of communication
	materials for Project SAFFAL

ENGAGING GROWERS IN THE ANDEAN REGION

• In 2019, the Andean Region Stewardship Program utilized the 7 Habits of Responsibility during the Handling and Use of Pesticides program to engage customers on Good Agricultural Practices to help protect their health and the environment.
• We conducted hands-on workshops to share these best practices. Since its inception, the program has trained over 12,000 farmers throughout the Andean region including Ecuador, Colombia and Peru.

Participant testing for the Handling and Use of Pesticides program was conducted through a picture-basedmultiple-choice questionnaire with the option for participants to take the test in written or oral format.

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