Annual Review
2016
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Annual Review
2016
Syngenta
Annual Review 2016
i
In this year’s report
Strategic overview
Operational performance
ii Regional overview
iii Group performance
35 Making a habit of being ever better
36 People
01 Bringing plant potential to life
37 Sustainable operations
02 Chairman’s statement
41 Business integrity
04 Chief Executive Officer’s statement
43 Public debates
02
06 Our business model
Research and Development
Performance data
45 Product line performance
08 Stepping up productivity
46 Financial information
53 Non-financial information
61 Independent Assurance Report
on the Syngenta Non-financial
Reporting 2016
Corporate information
62 Corporate governance
and compensation
64 Board of Directors
66 Executive Committee
68 Shareholder information
and innovation
The Good Growth Plan
12 Adding value sustainably
13 Make crops more efficient
14 Rescue more farmland
16 Help biodiversity flourish
17 Empower smallholders
19 Help people stay safe
20 Look after every worker
Regional performance
22 New technologies driving growth
23 Europe, Africa and Middle East
26 North America
29 Latin America
32 Asia Pacific
About the Syngenta Annual Report
The full edition of Syngenta’s Annual Report 2016 comprises:
3 the Annual Review 2016, summarizing both financial and non-financial performance
3 the Financial Report 2016
3 the Corporate Governance Report and Compensation Report 2016
The Annual Review includes quantitative and qualitative information on policies
and actions taken regarding our business and corporate responsibility goals.
This change of share
ownership allows Syngenta
to remain Syngenta, a global
company headquartered
in Switzerland, focused
on sustainable growth.
Michel Demaré
Chairman
04
2016 was another good
year for innovation at
Syngenta, demonstrating
the power of our
R&D engine.
J. Erik Fyrwald
Chief Executive Officer
Syngenta’s Annual Report also serves
as our annual Communication on
Progress (COP) for the United Nations
Global Compact. To read the full
Syngenta Annual Report 2016, go to
www.ar2016.syngenta.com
For further information, including
the Form 20-F, the Our Industry
publication and a section with
answers to many “Questions about
Syngenta”, visit our corporate website:
www.syngenta.com
Syngenta
Annual Review 2016
ii
Regional overview
North America
Sales 1 $ m
Employees 2
Research and Development sites
Production and Supply sites
Europe, Africa and Middle East
Sales 1 $ m
Employees 2,3
Research and Development sites
Production and Supply sites
3,202
4,176
33
31
3,793
12,429
47
44
North America comprises Canada
and the USA. It generates about
25 percent of Syngenta’s revenue,
and its growers – among the most
competitive and productive in the
world – are typically early adopters
of new technologies.
Read more on pages 26–28
EAME is our largest region in terms
of sales. At present, our business
comes mainly from Europe, with
an increasing share of future sales
coming from markets like Russia,
Ukraine and Africa.
Read more on pages 23–25
90
Countries
107
Production
and Supply sites 4
North
America
Europe, Africa
and Middle East
Latin
America
Asia
Pacific
Latin America
Sales 1 $ m
Employees 2
Research and Development sites
Production and Supply sites
Asia Pacific
Sales 1 $ m
Employees 2
Research and Development sites
Production and Supply sites
3,293
5,161
12
12
Latin America accounts for almost
10 percent of the world’s cropped area and
is the global leader in soybean, sugar cane
and coffee production. Farm scale ranges
from a predominance of smallholders
in Central America to highly-technified
large-scale farms in Argentina and Brazil.
Read more on pages 29–31
1 Excluding Lawn and Garden
2 Permanent full-time equivalent (FTE) as of September 30, 2016
3 Including headquarters (Switzerland)
4 Including four multi-functional production sites
27,810
Employees 2
119
Research and
Development sites
1,839
6,044
27
20
Accounting for 40 percent of the
world’s cultivated land, APAC is
a region dominated by smallholders
farming less than 2 hectares.
Changing diets and good scope for
improving yields present significant
opportunities for growth.
Read more on pages 32–34
Syngenta
Annual Review 2016
iii
Group performance
Financial
performance
Group sales
$12.8bn -2% (CER1)
2016
2015
2014
Cash flow return
on investment4
12%
12.79
2016
13.41
2015
15.13
2014
Non-financial
performance
People trained on safe use
6.8m
12%
2016
11%
2015
11%
2014
Crop Protection sales2
Seeds sales
Seed supply farms
in our Fair Labor Program
$9.6bn -2% (CER1)
$2.7bn -3% (CER1)
82%
2016
2015
2014
9.57
2016
10.00
2015
11.38
2014
Earnings per share3
EBITDA
$17.03 -4%
$2.7bn +2% (CER1)
2016
2015
2014
17.03
2016
17.78
2015
19.42
2014
2.66
2016
2.84
2015
3.16
2014
Recordable illness
and injury rate6
0.39
2.66
2016
2.78
2015
2.93
2014
Research and
Development investment
$1.3bn
2016
2015
2014
Efficiency savings5
Smallholders reached7
$620m
16.6m
1.30
2016
1.36
2015
1.43
620
2016
300
2015
2014
6.8
5.7
4.7
82%
84%
53%
0.39
0.38
0.37
16.6
17.2
13.8
1 Growth at constant exchange rates (CER)
2 Including sales of Crop Protection products to Seeds
3 Fully diluted excluding restructuring and impairment
4 For a definition of cash flow return on investment, see page 52
5 Cumulative since 2015
6 Per 200,000 hours, according to US OSHA definition
7 Through sales
Read more about “Financial information”
on pages 46–52
Read more about “Non-financial information”
on pages 53–60
Strategic overview
01
Bringing plant potential to life
We apply world-class science and
the most productive research and
development in the industry to achieve
a step change in agricultural productivity.
In more than 90 countries around the
world, our employees enable millions of
farmers to improve global food security
by making better, more sustainable
use of available resources.
Syngenta Annual Review 2016 02
Chairman’s statement
Ensuring choice
and innovation for
growers worldwide
This change of share
ownership allows
Syngenta to remain
Syngenta, a global
company headquartered
in Switzerland, focused
on sustainable growth.
Michel Demaré
Chairman
2016 has been a momentous year for
Syngenta and for the agriculture sector.
In the wake of challenging market
conditions and rising innovation costs,
our industry has embarked on a wave
of consolidation, which has a profound
transformational impact for all the players
involved. I am pleased that Syngenta,
after a period of turbulence, has found a
path that guarantees the Company’s long-
term future and safeguards its identity.
The option we have chosen is more a
change of ownership than a consolidation
move. Syngenta will remain Syngenta,
as you have known it for years, with the
same commitment towards food security,
innovation and farmers, whatever the size
of their farms.
The closing of such a transaction obviously
takes time, as it requires review and
approval from a large number of regulatory
authorities. In the meantime, we are not
standing still and waiting for the changes to
happen. We have worked hard at adapting
Syngenta to the new realities of our
markets. Profound management changes,
starting at the CEO level, are coupled with
crucial simplification initiatives to make
the Company leaner and faster to make
decisions. We have clarified our strategy,
giving our Seeds business a much more
transparent focus and expanding our skills
and capabilities, with an immediate, very
positive response from our customers.
We continue expanding and investing in our
leading Crop Protection business with the
same intensity. And we continue offering,
wherever appropriate and in different forms,
an integrated approach to our customers,
tailor-made to their needs and expectations
of what a broad portfolio company like
Syngenta can offer them.
While the instability that beset emerging
markets in 2015 to some extent subsided,
market conditions in 2016 remained
tough for the fourth consecutive year.
Syngenta had already responded quickly
to a more challenging environment with
the announcement, in February 2014, of
the Accelerating Operational Leverage
program. This has already yielded
substantial cost savings, and I have been
impressed by the way in which the entire
organization has adapted to the process
and platform efficiencies put in place.
Innovation is vital
However, for a company like Syngenta,
cost savings alone cannot drive longer
term performance. Growth is the key factor
for long-term success and, in our field,
it means that our business is dependent
on continuous innovation, whether this
be in the form of new crop protection
products, improved seeds or novel traits.
The development timelines are long,
often exceeding ten years. Regulation is
becoming ever more demanding, meaning
that the cost of bringing a new product
to market increases while the certainty
of achieving approval diminishes. When
revenues are under pressure – as they have
been in recent years – it becomes difficult
to sustain Research and Development
(R&D) at the necessary level. This dilemma
has been one of the catalysts for
industry consolidation.
ChemChina transaction
reinforces strategy
The transaction with ChemChina will
secure Syngenta’s long-term investment
in innovation. ChemChina has recognized
the value of our pipeline and of our world-
leading scientists, and has explicitly
committed to maintaining a high level
of R&D spend in the coming years.
This transaction reinforces our strategy
Syngenta Annual Review 2016
Strategic overview
03
Management changes
In May, after a rigorous search, the
Board announced the appointment of
Erik Fyrwald as Chief Executive Officer.
Erik’s considerable experience in both
agriculture and chemicals, along with his
strong track record of success as a CEO,
made him an excellent candidate for the
role. I look forward to continuing to work
with him to create the next chapter in
Syngenta’s history.
After a career at Syngenta and legacy
companies spanning 32 years, John
Ramsay decided to retire from the
Company at the end of September.
John was instrumental in the foundation
of Syngenta and served with distinction
as Chief Financial Officer since 2007 and
latterly also as Chief Executive Officer
ad interim. I should like to thank John for
leading the Company during a period of
uncertainty with great skill and judgment.
I should also like to thank employees, who
have worked tirelessly through a time of
turbulence, for their dedication and loyalty.
Syngenta remains Syngenta
Many of Syngenta’s shareholders invested
in the Company for the long term and
remain invested today. I am glad that
they will be amply rewarded through
ChemChina’s recognition of the Company’s
strategic value. This is a transaction
that benefits not just shareholders but
all stakeholders, including customers,
employees and communities. This change
of share ownership allows Syngenta to
remain Syngenta, a global company
headquartered in Switzerland, focused
on sustainable growth and committed
to helping growers worldwide achieve
food security.
Nequae prenita.
Michel Demaré
Chairman
of being a leading provider of technology
and will ensure continued choice for
growers worldwide. It will allow us to
maintain a broad portfolio and geographic
presence and to further strengthen our
position in emerging markets, notably in
China itself.
We are excited by the opportunity to
assist in the ongoing modernization of
Chinese agriculture, bringing not only
our products but also our experience
and know-how in promoting the highest
environmental standards. Sustainability has
always been at the core of our business
model, impacting the way we do business
on a day-to-day basis, and reinforced
by our smallholder-focused initiatives
through the Syngenta Foundation and
the commitments contained in The
Good Growth Plan. ChemChina has
enthusiastically endorsed these values and
principles, which are the foundation of our
Company and will remain so in the future.
Transparency and partnership
bring added value
In 2016, we made further progress
towards meeting our Good Growth Plan
targets for 2020. An expanding network
of partnerships is enabling us to broaden
our contribution by combining our skills
with the expertise and reach of others.
Data on each of the commitments is
independently collected and validated and
our open data policy allows people to make
their own assessment of our progress.
We are further promoting transparency
as a partner in GODAN, the Global Open
Data for Agriculture and Nutrition initiative,
a public/private collaboration of more than
400 organizations that supports global
efforts to make agricultural and nutritionally
relevant data accessible and usable.
Living our company values
The launch of The Good Growth Plan
in 2013 was not a new beginning for
Syngenta – it represented a continuation
and a quantification of a long-standing
focus on sustainability. This focus has
been embraced by the Company’s
28,000 employees and infuses its culture
and values. In November, I was privileged
to host the 2016 Syngenta Awards
ceremony, at which outstanding teams
from around the world were recognized
for their contributions to those values and
to the company purpose of Bringing plant
potential to life. The entries were without
exception inspiring, and I was deeply
impressed by the passion, motivation
and spirit of healthy competition that
reverberated through the event.
Syngenta Annual Review 2016 04
Chief Executive Officer’s statement
A clear sense
of purpose in a
changing industry
environment
2016 was another good year
for innovation at Syngenta,
demonstrating the power
of our R&D engine.
J. Erik Fyrwald
Chief Executive Officer
When I was appointed CEO of Syngenta
in June 2016, I was thrilled to return to the
world of agricultural technology. The need
to grow food sustainably has never been
greater and our industry has a vital role to
play. I am proud to be part of the Syngenta
Team that does so much to help farmers
and their communities all around the world.
Common sense of purpose
In my first months at Syngenta, I traveled
to every region, meeting our people and
the customers they serve. From vegetable
and rice growers in Vietnam and China to
corn and soybean farmers in the USA and
Brazil, and many others, I found a common
sense of purpose to produce better crops
while making the best use of inputs and
natural resources. During my travels, I
witnessed firsthand the tremendous energy
and dedication of Syngenta employees
around the world, who develop and deliver
innovative products and agronomic advice
to help farmers succeed, and I would
like to thank them all for their capabilities
and commitment. It is a true joy to see
these farmers use our products and
services to help improve their lives and
lift up their families and communities,
while contributing to global food security
and a reduction in carbon emissions and
water usage.
Robust long-term prospects
With regard to the agriculture industry,
2016 was another difficult year. Crop prices
remained low and grower profitability was
under pressure in many areas. This led
to a contraction in the crop protection
market, with the seeds market about
flat. It is important to remember that,
until 2013, both markets saw years of
almost uninterrupted growth, driven by
the adoption of innovative technology and
intensification. These drivers remain in place
as the global demand for grains continues
to rise, so we look towards the future with
confidence that the prospects for our
industry are robust.
Syngenta Annual Review 2016
Strategic overview
05
Resilient performance
in a difficult environment
Our sales in 2016 were 2 percent lower
at constant exchange rates and 5 percent
lower in reported terms. In the fourth
quarter, adjusted for a non-recurring
royalty payment, regional revenue growth
was 7 percent. We continued our focus
on costs through the Accelerating
Operational Leverage program and were
able to increase EBITDA in the second half.
For the full year we generated free cash
flow of $ 1.4 billion, helped by our focus
on inventory management. Meanwhile,
we continued to invest in order to meet
demand for best-in-class chemistry and
seeds, with the completion of capacity
expansion projects at key sites in Brazil
and Switzerland.
Proven innovation success
2016 was another good year for innovation
at Syngenta, demonstrating the power
of our R&D engine. Our new herbicide
ACURON™ propelled market share gain
in the North American corn market,
providing growers with a much-needed
solution to the problem of weed resistance.
Its success shows that, even in difficult
market conditions, growers embrace
new technology that can deliver value.
In Argentina, we received approval for
the breakthrough fungicide ADEPIDYN™,
which builds on our strong fungicide
heritage including ELATUS™ and AMISTAR®
technology. In Brazil, the outstanding
performance of our VIPTERA™ insect
resistance technology enabled us to grow
our corn seed share in this critical market.
Innovation is at the heart of our business
model and extends well beyond new
crop protection active ingredient launches.
Our broad portfolio and formulation
expertise enable us to continuously bring
new crop protection products to market,
addressing the varying and evolving
needs of growers of multiple crops in
different countries. In Seeds, our breeding
capability delivers many new hybrids and
varieties every year, providing growers
with continuous yield and quality benefits.
In those regions where GM technology is
accepted, we also offer a leading suite of
traits for corn.
Clear corporate goals
This strength in innovation will support
the achievement of our first corporate
goal, which is to improve the customer
experience and to profitably grow
market share. Achievement of this goal
depends not just on leading innovative
products, but also on our entire approach
to the customer. The approach varies
by market as it is driven by local needs
and knowledge.
Our second corporate goal is to drive
simplification to continuously improve
everything we do, thereby unleashing
our people to focus on the customer.
We have built the foundations for this
through the Accelerating Operational
Leverage program, which is now fully
embedded across the Company.
Our third corporate goal, which we will
pursue with continued determination
as a private company, is to meet our
financial commitments.
New Executive Team established
There were several changes in the
Syngenta Executive Team in the course
of the year. I warmly thank the three
outgoing members – John Ramsay,
Davor Pisk and Jonathan Seabrook – for
their many years’ service and substantial
contributions to the Company. I was
pleased to announce the appointments
of Mark Patrick as Chief Financial Officer
and Jeff Rowe as President Global Seeds
and North America. Mark brings more
than 20 years’ experience in the Syngenta
Finance function. Jeff comes from outside
the Company and has tremendous seeds
industry experience. In his new role, he
will focus on making our performance in
seeds match the quality of our technology.
The team has been further strengthened
with the appointments of Alexander Tokarz
as Head Business Development, Mark
Titterington as Head Corporate Affairs
and Laure Roberts as Head Human
Resources – all strong leaders who bring
great experience and energy to their
new positions.
In 2016, we made progress despite the
many challenges we faced in the external
environment. Our people remained focused
on the business in the knowledge that,
under the future ownership of ChemChina,
Syngenta will play an increasingly important
role in the future of agriculture. I personally
am very excited by the growth opportunities
that this transaction will bring and look
forward to its successful conclusion.
J. Erik Fyrwald
Chief Executive Officer
Syngenta Annual Review 2016 06
Our business model
The resources
we depend on
Financial capital
People and the
intellectual property
they create
Chemical, biological,
genetic and
computational sciences
Natural resources
Facilities and services
Local communities
Laws and regulations
Creating value
by taking a
long-term view
Our ability to create value for employees, the communities where
they live and for all other stakeholders is contingent on the value
we create for our customers.
Our innovation enables farmers – from smallholdings to large-scale
farms – to safely produce food, feed and other plant-based products
as efficiently as possible, without using more natural resources.
We take a long-term view to developing technologies that will not just
meet demand in the years to come, but will do so without depleting
already overstretched resources.
We cannot achieve our goals alone.
To create the business and social value
we aspire to, we have built a rich network
of productive alliances with NGOs,
academic institutions, other agricultural
businesses and growers. Our knowledge
and open, collaborative culture contribute
to making us a trusted and respected
partner. Through these relationships
we can leverage our own resources –
accelerating innovation, sharpening
efficiency and increasing our flexibility.
Our broader value proposition comes not
just from the food that we help farmers
produce today, but from the support we
give them in building prosperous rural
communities and sustainable farming
practices. That’s why our Good Growth
Plan commitments are integral to our
business strategy. They put sustainability
center stage in the way we do business.
And they align closely with many of the
UN’s Sustainable Development Goals.
We’re mobilizing our expertise and
innovation to create a sustainable future
in agriculture. Factors such as climate
change are among the global risks
that we consider in addition to normal
business risks. This means that we plan
not only for the short term but also for
the decades ahead.
Syngenta Annual Review 2016 Strategic overview
07
What
we do
What
we create
The value
we provide
Research and development
Products, services and solutions
Products
3 Herbicides
3 Insecticides
3 Fungicides
3 Seedcare
3 Seeds
3 Traits
Crops
3 Cereals
3 Corn
3 Diverse field
crops
3 Rice
3 Soybean
3 Specialty crops
3 Sugar cane
3 Vegetables
3 Lawn and
Garden
Adjacent technologies
3 Nutrients
3 Financial solutions
3 Information systems
3 Digital agronomy
What we do
Who we work with
3 Scientists and
universities
3 Research institutions
3 Farmers and suppliers
3 NGOs
3 Agricultural extension
services
3 Crop protection
discovery and
innovation
3 Advanced seed
breeding
3 Addressing insect,
fungus, weed and
environmental stress
on crops
Production
What we do
Who we work with
3 Active ingredients
3 Intermediates
3 Formulation, fill
and packaging
3 Seed production
Commercial
3 Chemical suppliers
3 Toll manufacturers
3 Seed supply farms
3 Lawn and Garden
supply chain
What we do
Who we work with
3 Product life cycle
management
3 Crop-based offers
3 Marketing
and sales
3 Distribution
3 Growers
3 Distributors
3 Demonstration farms
3 Processors and
the food chain
3 Agronomists
3 Agricultural extension
services
3 Technology providers
Supporting activities
What we do
Who we work with
3 Safe and sustainable
use of our products
3 Product registration
3 Health, safety and
environment
3 Multi-stakeholder
dialogue
3 Industry associations
3 Government and
regulatory authorities
3 NGOs and IGOs
3 Communities
Return on investment for
growers and shareholders
Food, feed, fuel and fiber
Sustainable intensification
of agriculture to provide
food security
Grower and
customer satisfaction
Sustainable production
Development of our people and
partners along the value chain
Economic value shared
with employees, suppliers,
governments and communities
Collective wellbeing
of communities
Stimulating research
and sharing knowledge
Syngenta Annual Review 2016 08
Research and Development
Stepping up
productivity
and innovation
Our continuing success and sustainability will be determined by
our ability to keep creating new solutions that meet and anticipate
grower needs. We invest around $ 1.3 billion a year in research and
development (R&D), covering chemistry, genetics, breeding and
computational science. We have demonstrated the productivity
of our R&D – and in 2016, we adapted our strategy to accelerate
the pace of delivery further.
Investment in Research
and Development $bn
2016
2015
2014
1.30
1.36
1.43
Our goal is to create value for our
customers through higher yields and better
use of resources. Constant innovation is
necessary to meet the evolving needs of
growers and the value chain, to address
the ever-changing pressures presented by
pests, diseases and climate change, and
to deliver the sustainability commitments
of our Good Growth Plan.
In 2016, we invested $ 1.3 billion in
research and development at 119 sites
around the world.
Our R&D world is changing
In a changing industry landscape
Syngenta’s commitment to R&D is
unwavering. The regulatory framework in
which we operate is also evolving. We need
to work with governments and other bodies
to help shape policy and ensure that
regulatory requirements are science-based.
Against this background, the opportunities
offered by science have never been
greater. The convergence of chemistry,
biology and mathematics is enabling us
to innovate faster, more precisely and with
more predictable results. Increasingly, we
can apply predictive science to innovate
by design, using data-driven techniques
to create better products that meet
growers’ needs.
Faster, smarter innovation
The quality of our R&D is reflected in an
exceptionally strong pipeline. Our aim is
to target our activity where we see major
opportunities for growth and differentiation.
We will invest selectively in new technologies
that can differentiate us in the marketplace.
This exploratory portfolio will take us deeper
into novel products such as biocontrols
and hybrid wheat while expanding our
capabilities in areas such as genome
editing and predictive toxicology.
Biological controls complement other crop
protection technologies with new modes
of action or enhanced spectrum, and have
particular value in managing resistance
challenges and food chain requirements.
This market is expected to see double-digit
growth over the next decade, and we are
increasing our capabilities by establishing
a biocontrols lab at Research Triangle Park
in the USA, working in close collaboration
with specialists at Jealott’s Hill in the UK.
The biocontrols partnership we launched
in 2016 with DSM has already built a
portfolio of biologically active candidates
for further investigation.
We remain committed to promoting
innovation by sharing our knowledge –
both through licensing and through our
increasing publication of open data.
For example, as a pioneer in the emerging
science of RNA-based biocontrols, in 2016
we became the first agrochemical company
to share RNA-based biocontrol research
as open data.
Syngenta Annual Review 2016 Research and Development
We also publish large amounts of
agronomic data from our Good Growth
Plan. For more on our approach to open
data, see “Open data: accelerating
progress” on page 43.
For some years, we have provided access
to our patented native vegetable traits
and enabling technologies through our
e-licensing website. And in 2016, we
entered into a cross-licensing agreement
on native vegetable traits with Dutch plant
breeding company, Rijk Zwaan. This gives
both companies the right to exchange
patented biological material for breeding
and commercial purposes.
Key achievements in 2016
We continue to be leaders in productivity
within crop protection R&D and are meeting
our target of launching on average at least
one significant new active ingredient (AI)
each year. In 2016, ADEPIDYN™ received
its first registration in Argentina and is now
being marketed there as MIRAVIS™ DUO,
a combination of ADEPIDYN™ fungicide
and difenoconazole for use on soybean
against late-cycle diseases. ADEPIDYN™
is a highly effective fungicide with a broad
range of applications and is set to become
a blockbuster – see case study below.
For use on multiple crops, it provides a step
change in leaf spot disease management,
delivers excellent control of powdery
mildew, and is highly effective on difficult-
to-control diseases such as Fusarium head
blight and molds, which cause severe
crop damage.
Untreated soybean
Soybean treated with ADEPIDYN™
New fungicide set for global success
Our new broad-spectrum fungicide ADEPIDYN™ is a potential blockbuster: we’re
forecasting peak sales of over $ 750 million globally. It’s both effective and versatile –
we are currently developing products based on ADEPIDYN™ for soybean, wheat,
corn, canola, vegetables and specialty crops. Following its launch in Argentina at the
end of 2016, we’re preparing to take it into the USA, Canada, Mexico, Australia and
New Zealand in 2018 – reinforcing our global leadership in fungicides.
09
Cl
Cl
F
O
F
Cl
N
O
N
N
3,800
In developing new fungicide ADEPIDYN™,
we screened over 3,800 candidate
compounds and conducted over
5,000 trials. It took eight years to develop
Pinoxaden, the AI in herbicides such
as AXIAL®, achieved EU Annex 1 listing.
This means that cereal growers can
continue to use it to control a broad
spectrum of weeds and grasses, and it
protects our sales of this effective herbicide.
Our insecticide AI abamectin received label
extension approvals in the USA, allowing
it to be used on a wider variety of crops.
Our fungicide ORONDIS™ received its first
premix registration in North America, along
with new uses on citrus and potatoes.
In seed treatment, Brazil granted
registration for FORTENZA® 600 insecticide
treatment, China approved oxathiapiprolin
fungicide and the USA approved the first
oxathiapiprolin combi-formulation.
Our new EPIVIO™ herbicide biostimulant
also has great market potential as a seed
treatment solution enabling early vigor in
seedlings. In 2016, we launched EPIVIO™
VIGOR in Brazil for this application in
soybean, and received product approval
in China for use on corn.
In our pipeline, Lead 5 – a long-lasting
nematicide with a novel mode of action –
moved into stage 2 development.
Growers are eagerly awaiting an effective
solution for microscopic nematodes, which
today represent one of the largest unmet
pest control needs.
Syngenta Annual Review 2016 10
Research and Development
Our strengths in plant breeding are
reflected in leadership positions in a
number of markets including cereal seeds.
Our plant breeding work has experienced
a paradigm shift since researchers began
using analytics tools to identify and harness
high-performing genetics for new seed
varieties. We are developing technology
that will allow us to customize our products
for growers based on their needs, field
conditions and weather forecasts in a given
year. In 2016, Syngenta received the Genius
Award for Analytics Innovation from the US
Association of National Advertisers, which
cited our “creative analytical approach to
the complexity of plant breeding”.
5,000+
Skilled employees
working in
R&D worldwide
Recent Crop Protection launches
Product
SEGURIS®
VIBRANCE®
ELATUS™
SOLATENOL™
FORTENZA®
MINECTO®
ACURON™
ORONDIS™
EPIVIO™
ADEPIDYN™
Indication
Fungicide
Fungicide
Fungicide
Seedcare
Herbicide
Fungicide
Seedcare
Fungicide
Crop Protection Pipeline
Crops
Cereals, diverse field crops, rice, specialty crops, vegetables
Cereals, corn, diverse field crops, rice, soybean, specialty crops,
vegetables
Cereals, corn, diverse field crops, soybean, specialty crops,
vegetables
Cereals, corn, diverse field crops, rice, soybean, specialty crops,
vegetables
Cereals, corn, diverse field crops
Vegetables, specialty crops
Cereals, corn, cotton, sorghum, soybean
Cereals, corn, soybean, specialty crops, vegetables
Product
Lead 1
Lead 2
Lead 3
Lead 4
Lead 5
Lead 6
Lead 7
Lead 8
Lead 9*
Lead 10*
Indication
Insecticide
Herbicide
Fungicide
Insecticide
Seedcare
Seedcare
Seedcare
Herbicide
Herbicide
Crops
Multiple crops
Corn
Soybean
Vegetables, specialty crops
Cereals, corn, soybean
Multiple crops
Cereals
Cereals, corn
Rice
Crop enhancement Rice
* New addition in 2016
Stage 1: Invention, optimization Stage 2: Evaluation Stage 3: Development and launch
Peak sales
>$ 150m
~$ 500m
~$ 1,000m
>$ 400m
>$ 500m
>$ 150m
~$ 80m
>$ 750m
Status
Stage 3
Stage 3
Stage 1 (late)
Stage 3
Stage 2
discontinued
Stage 1 (late)
Stage 2
Stage 1 (late)
Stage 1 (late)
Syngenta Annual Review 2016 Research and Development
11
Traits Pipeline
Product
Lead 1
Lead 2
Lead 3
Lead 4
Lead 5
Lead 6
Lead 7
Lead 8
GM Traits
Crops
Disease control
Soybean
Insect control
Insect control
Corn
Corn
Weed control
Corn, soybean
Insect control
Corn
Weed control
Soybean
Insect control
Insect control
Corn
Corn
Stage 1: Invention, optimization Stage 2: Evaluation Stage 3: Development and launch
Status
Stage 1
Stage 1 (late)
Stage 1 (late)
Stage 1
Stage 2
Stage 3
Stage 3
Stage 3 (late)
Plant breeding highlights in 2016 included
US authorizations for our glyphosate-
and glufosinate-resistant corn molecular
stack product and for a molecular stack
engineered to express three proteins
that confer resistance to herbicide and
to insect damage.
Canada gave commercial approval for
our AGRISURE® refuge-in-a-bag trait
stacks, which give growers a flexible and
convenient way to comply with refuge
requirements and manage the development
of resistant insects.
Our rich seeds pipeline includes a next-
generation above-ground insect control
trait, now entering early development.
Further leads have entered late research,
and we are working on multiple insecticidal
proteins with new modes of action against
corn root worm and fall army worm.
Investment in people
and resources
To fulfill our strategy we must invest in both
facilities and talent. Diversity of thought,
disciplines and experience is fundamental
to our approach, and we actively pursue
cross-functional development across
the organization.
Attracting and retaining capable, creative
scientists and engineers is crucial.
Our Science and Technology Ladder
provides clear opportunities for career
progression for employees whose
contribution is focused on science.
We have also updated the role and
purpose of our Fellows community.
Fellows are Syngenta scientists and
engineers at the top of the Science and
Technology Ladder who are role models
for scientific and technical delivery and
who help us to identify new business and
technology opportunities. They also play an
ambassadorial role, helping to ensure that
our R&D productivity benefits from effective
information exchange with the international
scientific community.
70
Native
vegetable
trait patents
covered by
our 2016
cross-licensing
agreement
with Rijk Zwaan
Syngenta continues to be recognized in the
scientific community as an attractive place
to work. We are regularly placed in the
world’s Top 20 biotech and pharmaceutical
employers in Science magazine’s annual
survey, ranking 14th in 2016.
We support our talented people with
continuing investment in high-quality R&D
facilities. In 2016, scientists at our Research
Triangle Park facility in the USA moved into
a new state-of-the-art innovation center
designed to stimulate scientific interaction.
In the Ukraine, we invested in a new corn
and sunflower breeding station for Eastern
Europe and the CIS, where we are a market
leader. We also initiated investment in:
cutting-edge sample storage and retrieval
hardware at our UK Central Research
Dispensary at Jealott’s Hill; a new Breeding
Center of Expertise in Chartres, France,
where activity will include our high-priority
hybrid wheat program; and a new Global
Nursery in Kenya to support vegetable and
hybrid cereal production.
Syngenta Annual Review 2016 12
The Good Growth Plan
The Good Growth Plan is a learning
process, both for us and the people who
work with us. Its value will depend to a
large extent on how successfully we pass
on what we know, and what we learn –
to small- and large-scale farmers, the
farmworkers we train, and the partners
who use our openly published data.
That’s why we’ve set targets for each of
our commitments. We report our progress
against these targets each year, and
provide additional progress information
online at www.data.syngenta.com
We are now going further, seeking to
measure not just the extent of our reach
but also the nature and quality of the value
we add. We are assessing our programs’
impact on people, communities and
the environment.
The principles and priorities of The Good
Growth Plan are now deeply embedded in
the way we do business. And as we build
what we learn into our commercial offer,
we are also building the evidence that it
delivers real, measurable value for growers
and society at large.
For more on the UN’s SDGs, visit
sustainabledevelopment.un.org/topics
See detailed performance data for
The Good Growth Plan on page 55
Adding value
sustainably
As a business serving the agricultural industry, we help farmers
feed a fast-growing world population. But there’s more: we aim
to lead in sustainability. The Good Growth Plan is not only driving
the way we add value to a sustainable agriculture system; it’s
measuring the results, so we can quantify the difference we make.
The Good Growth Plan
Our six commitments to help farmers
meet the challenge of feeding a fast-
growing world population sustainably.
Make crops
more efficient
Rescue more
farmland
Help biodiversity
flourish
Empower
smallholders
Help people
stay safe
Look after
every worker
The Good Growth Plan is part of our
business strategy, designed to focus our
skills and resources on understanding and
meeting the most pressing needs of our
customers and stakeholders. It demands
innovation and enterprise from every part
of our organization.
The Plan considers the resource efficiency
that must underpin current productivity,
the ecosystem resilience necessary to
sustain it in the future, and the knowledge
transfer needed to support and strengthen
rural communities. It pays particular
attention to smallholders, because they
have the greatest potential to increase
farm productivity.
Today, we have a well-developed network
of more than 3,700 farmers and many other
partners working with us to demonstrate
and measure what’s possible for 23 crops,
the environment, rural communities and
agriculture workers in 42 countries.
Our six Good Growth Plan commitments
help us quantify how we contribute to the
Sustainable Development Goals set out
in the United Nations Agenda 2030.
Syngenta Annual Review 2016 The Good Growth Plan
13
Make crops
more efficient
Increase the average productivity
of the world’s major crops by
20 percent without using more
land, water or inputs
Average land productivity increase1 %
1.2%
2020
2016
2015
2014
20
1.2
1.9
0
1 On reference farms compared to baseline 2014
Farm network
No. of reference farms
No. of benchmark farms
2016
2014
2015
1,039 1,062
860
2,694 2,586 2,738
Progress and key achievements
3 Combined farm-level data with “big data”
to give richer, more consistent analysis
and feedback
3 Helped drive creation of open data
ecosystem to accelerate innovation
3 Began to identify key drivers for
sustainably enhancing productivity
The world needs to grow more food in
the next 50 years than it has produced in
the past 10,000 while using resources far
more efficiently. We work together with
growers who use our products every day,
and focus particular effort on smallholders,
who have the greatest potential to increase
productivity and in turn improve their
own livelihoods.
Getting the most out of every hectare
Tanner Tanke grows soybeans, sugar beets and wheat in North Dakota, USA.
As a Good Growth Plan reference farmer, he tracks the resources it takes to grow
his crops. Knowing the efficiency of his farm inputs helps him not only keep an eye
on his bottom line, but also improve the sustainability of his farm. This helps him get
the most out of every hectare.
Such a large farm network sees constant
changes over time driven by developments
in the business environment. For example,
we are now focusing our reference farm
network in Africa and the Middle East
entirely on smallholders to make our service
to them more impactful. We’ve improved
our progress measurement to allow for
changes in reference farms while still
measuring consistently. Find more details
online at www.data.syngenta.com
Making our data more valuable
We’ve improved the way we share our
Good Growth Plan data with growers
by focusing on the results most relevant
to them.
Measuring the difference
we make
To test and measure what’s possible, we
have created a network of farms across
23 crops in 42 countries. In 11 countries we
are focusing particularly on smallholders,
who have the greatest potential to increase
productivity. We have reference farmers
working with our field experts to trial new
solutions and raise productivity and we
have benchmark farmers who share with
us their data to compare and complement
the assessment.
In 2016, we collected data from a total of
1,039 reference farms that follow Syngenta
protocols, as well as 2,694 randomly
selected benchmark farms for comparison.
Across all our reference farms, the average
land productivity increase in 2016 was
1.2 percent. This was 3.8 percentage
points higher than benchmark farms where
we saw an average 2.6 percent decrease
in land productivity.
Syngenta Annual Review 2016 14
The Good Growth Plan
Farm performance is affected by
many factors, both controllable and
uncontrollable, and what works for one
grower, crop or location may not work for
another: the more data we can analyze, the
greater our chances of understanding why.
We now have unprecedented quantities
of detailed farm-level information, which –
by sharing them as open data – we are
supplementing with global information
on factors such as weather, soil and
growing conditions.
Global food security is too big a challenge
for any one organization, and the pace
of innovation will depend on how easily
people and organizations can share data.
Without an efficient global infrastructure
for agricultural data, our openness and
transparency are of limited value.
To help build this infrastructure, we
joined GODAN, the Global Open Data for
Agriculture and Nutrition initiative, which
now has over 375 partners including
governments, NGOs and commercial
organizations. At GODAN’s 2016 Summit,
we co-presented a discussion paper setting
out priorities for creating an effective data
ecosystem for the industry, from engaging
stakeholders to sourcing, sharing and
collaborating with data. Commissioned by
Syngenta with contributions from partners –
the Consultative Group for International
Agricultural Research, the Open Data
Initiative, information specialists Agroknow
and Agrimetrics – this paper is helping
to drive an open data revolution in
our industry.
What we’re learning from
our data
In collaboration with external partners,
we have been conducting a wide range
of analyses, using computers to mine
our data and test environmental models.
Using machine intelligence will help us
gain previously unavailable insight into
patterns and correlations. Given the huge
numbers of variables involved, it is too early
to draw firm conclusions about the keys
to sustainable productivity increases.
8%
Average land
productivity
increase on
smallholder
reference farms
We aggregate full-year data to calculate
global averages on reference and
benchmark farms. In this report, we
focus on how efficiently land, pesticides
and nutrients are used. In addition, we
detail smallholder farm productivity –
they achieved the hoped for higher rate
of increase in productivity of 8 percent,
compared with larger farms where the
average was 1.2 percent.
Yields and pesticide field application
efficiency generally seem to correlate with
external factors such as pest pressure,
adverse weather conditions, access
to training and our agronomic advice.
Pesticide field application efficiency for
example was generally lower this year,
though reference farms performed better
than benchmark farms.
What’s next?
Each growing season provides us with
more data to help us and our partners to
identify keys to more productive agriculture.
Meanwhile, a particular focus in 2017
will be to create more value for farmers
participating in our reference network.
We can analyze their data to make
optimized recommendations or support
multi-stakeholder partnerships that provide
incentives for sustainable improvements
in the field. For example, our Fruit Quality
Contract program helps farmers comply
with stringent food chain standards.
And, while building trust externally by
publishing data openly and transparently,
we will take care to earn growers’ trust by
protecting their privacy so that they stay
in control of their own data and results.
Rescue more
farmland
Improve the fertility of 10 million
hectares of farmland on the brink
of degradation
Benefited farmland1 m ha
4.3m
2020
2016
2015
2014
1.9
10.0
4.3
2.4
0.8
1 Cumulative since baseline 2014
Progress and key achievements
3 Integrated soil conservation protocols
into commercial offers as additional
farmer benefit
3 Continued campaigning to promote
good soil management practices
3 Joined multi-stakeholder platforms to
promote the adoption of conservation
agriculture
Poor farming practices expose soil to wind
and rain erosion, leaving millions of hectares
infertile. Every year, the world loses enough
land to produce 20 million tons of grain.
The UN Convention to Combat
Desertification (UNCCD) estimates that
52 percent of the land used for agriculture
is moderately or severely affected by soil
degradation. There’s an urgent need for
action by governments and the agricultural
sector to restore the fertility of existing
land and prevent further degradation: this
is explicitly recognized by the UN in its
Sustainable Development Goals.
Syngenta Annual Review 2016 The Good Growth Plan
15
Measuring the difference
we make
We are raising awareness of this issue and
promoting conservation agriculture practices
based on minimum soil disturbance, crop
rotation and permanent ground cover.
In 2016, our programs benefited an
additional 1.9 million hectares of land –
bringing the cumulative total to 4.3 million
hectares and keeping us on track towards
our 2020 target of 10 million. The substantial
increase in 2016 was due mainly to better
integration of soil management practices into
our commercial offers, which now account
for some 70 percent of hectares benefited.
Driving positive change
Integrating soil conservation practices
into our product protocols and training is
helping us to differentiate our commercial
offer. In 2016, we began investigating the
soil conservation profiles of key products
and integrated offers so we can help
growers to maximize their contribution
to soil conservation. Our hybrid barley
HYVIDO®, for instance, has valuable
characteristics such as deep root systems
that can contribute more to soil fertility
when enhanced by protocols that include
crop rotation and nutrient management.
The science behind conservation
agriculture is well established. Our aim is
to drive effective technology transfer by
helping farming communities and local
stakeholders to adapt it to local conditions.
Farms of all sizes will benefit, but there is no
one-size-fits-all solution: soil conservation
needs to be tailored to local environments
and crops, and the best results come
from marrying proven science to local
knowledge. In this way, agriculture – and
the communities that depend on it – will
become more resilient to challenges such
as climate change.
Investing in soil health
Péter Szabadka knows taking good care of his soil is an investment in the future.
His family farm in Hungary grows a variety of crops using our CONTIVO® solution,
which promotes conservation agriculture to reduce erosion and maintain soil health.
He says it’s not only good for the environment – but for his productivity as well.
We are engaging the conservation
community to promote the adoption
of conservation agriculture and secure
validation for our methods. This includes
presenting to major conventions – such as
the 2016 UNCCD World Day to Combat
Desertification in Beijing, China, where
Syngenta was invited to represent an agri-
business viewpoint. We are promoting
the benefits to farmers and showing them
how conservation agriculture can protect
against stresses such as drought. Seeing is
believing, and investment in demonstration
plots and farms is an essential part of our
advocacy and technology transfer effort.
What’s next?
In 2017, we’ll be working with expert
partners to pilot impact assessments of
eight soil conservation projects across all
our major regions. These environmental
and socio-economic assessments will help
to accelerate change by showing more
clearly the returns farmers can expect.
They will also highlight immediate benefits –
such as savings on tractor fuel – that arise
before longer-term benefits such as climate
change resilience become apparent.
We’ll continue working with commercial
partners by creating and promoting open
platforms that combine technologies,
machinery, financial solutions and
education. We’ll also continue working
with the UNCCD on the Soil Leadership
Academy to increase awareness and
urgency among policymakers on soil
health and fertility issues.
Syngenta Annual Review 2016 16
The Good Growth Plan
Help biodiversity
flourish
Enhance biodiversity on
5 million hectares of farmland
Benefited farmland1 m ha
4.9m
2020
2016
2015
2014
3.3
5.0
4.9
1.6
0.7
1 Cumulative since baseline 2014
Progress and key achievements
3 Developed new methodology for
assessing environmental and socio-
economic impacts of biodiversity
interventions in agricultural landscapes
3 Worked with the conservation
community communicating to
policymakers the importance
of landscape connectivity
3 Increased the impact of our partnership
with The Nature Conservancy to benefit
2.8 million hectares in Brazil
The sustainability of agriculture relies on
biodiversity – for plant breeding, pollination
and food diversity. Our customers and
our own seed production rely on this
critical resource.
Biodiversity suffers as species’ habitats are
lost or fragmented, and in recent decades
it has been declining at an unprecedented
rate. Climate change increases the risks.
We are promoting and enabling action
to protect and enhance biodiversity –
primarily by managing marginal and less
productive farmland alongside fields and
waterways to create rich, connected wildlife
habitats. This is recognized as the greatest
opportunity to enhance biodiversity in
agricultural landscapes.
Measuring the difference
we make
Our approach seeks to restore farmers’
role as custodians of the land; but we also
recognize that they have livelihoods to
earn and businesses to run. To present
a persuasive case to them, and to
policymakers, we need to quantify the
benefits that can be delivered and the
returns farmers can expect. So we
have developed an impact assessment
methodology that we piloted in 2016 at
eight sites in Asia, Europe, Latin America
and North America. The assessments are
being carried out by Arcadis, a leading
global consultancy in natural assets,
and are designed to measure both the
returns to farmers and the wider socio-
economic benefits.
So far, we have engaged in programs
in 34 countries benefiting a total area
of 4.9 million hectares. This reflects the
great success of our partnerships with
other stakeholders and in particular
The Nature Conservancy in Brazil, which
alone contributed 2.8 million hectares in
2016. The Soja+Verde project works on
the restoration of rainforest in agricultural
landscapes. The significant positive impact
on biodiversity is achieved through a
new approach to landscape connectivity.
As a consequence, we are already close
to our 2020 target of 5 million hectares.
Stimulating thought and action
We aim to be both thought leaders and
practitioners – publishing technical papers
and making the case for action, while also
providing seeds, demonstrations, training
and expertise to facilitate that action.
Preserving the land for generations
Luciane Copetti is a grower and has been Secretary of Environment of Lucas do Rio
Verde municipality, which is a major production area for soybean in Brazil. She’s been
a leading figure in mobilizing growers, government, NGOs and companies to establish
forest conservation areas amongst the numerous farms that operate there. Her work
supports the Soja+Verde project, an environmental partnership involving Syngenta
and The Nature Conservancy.
Syngenta Annual Review 2016 The Good Growth Plan
17
We are making biodiversity solutions an
integral part of our commercial approach.
To support this, we are building an
extensive network of partners: regional
governments, municipalities, NGOs,
farmers and academics. Farmers want
to see evidence of the benefits on offer,
so partnering with a local university on a
demonstration plot is a typical first step.
We work closely with conservation bodies
to review and validate our approach.
With the World Business Council for
Sustainable Development we brought
together a coalition of businesses,
conservationists and institutions to produce
a policy briefing paper on the multifunctional
benefits of promoting biodiversity corridors
in agricultural landscapes. Part of this
work was presented at the UN Convention
on Biological Diversity conference in
December 2016.
Driving action up the value chain
A key goal is to establish biodiversity
alongside water and soil conservation as
a primary focus for value chain partners.
We are encouraging them to include
biodiversity in the criteria they set for
supply contracts with farmers, and are
pleased that a growing number of food
manufacturers now see this as part of their
own responsibility towards the environment
and their customers. Some even advertise
it on their consumer packaging.
What’s next?
In 2017, we’ll continue to work with partners
to make investment in field margin habitats
simpler and cheaper for farmers, and
to embed the concept more deeply into
our commercial offer. We’ll also continue
promoting the benefits across a broad
spectrum of stakeholders, supported by
findings from our impact assessments.
Empower
smallholders
Reach 20 million smallholders and
enable them to increase productivity
by 50 percent
Smallholders reached1 m
16.6m
2020
2016
2015
2014
1 Through sales
20.0
16.6
17.2
13.8
Progress and key achievements
3 Land productivity increase on
smallholder reference farms 8 percent
3 Partnerships to scale-up social
impact assessment
3 Addressed grower challenges through
partnerships such as the Sustainable
Table Grapes Initiative in India
Smallholder growers are critical to the
world’s food security, yet they often
face high financial risks and low returns.
Every day, 180,000 people leave rural
communities to live in cities.
Over half our sales are in developing
countries dominated by smallholder
farmers, particularly in Africa, Asia Pacific
and Latin America. As our contact with
smallholders is largely indirect through
vendors of our products, we use sales
volume data to calculate the number of
smallholders reached.
In 2016, sales of products targeted at
smallholders were reduced by adverse
weather and changes in our go-to-market
strategies; as a result, the calculated number
of smallholders reached through sales
reduced to 16.6 million (2015: 17.2 million).
However, we remain confident of reaching
our goal of 20 million by 2020.
Productivity gains on smallholder farms
come from a combination of state-of-
the-art products made available in pack
sizes appropriate for smallholders and the
necessary training to use them effectively.
We are measuring our progress in
improving smallholder productivity through
our network of reference farms. Today,
we have 73 smallholder reference farmers
in our Good Growth Plan farm network.
The average productivity gain on these
farms in 2016 was 8 percent, and we
assess the benefit this can bring through
social impact assessments.
Measuring the difference
we make
Reaching more smallholders is a means
to an end: we want to increase our impact
on the wellbeing and prosperity of these
farmers and their communities.
To see the broader picture of what we bring
to them through our products and services,
we have been working with the Sustainable
Markets Intelligence Center (CIMS) and
other partners including the Sustainable
Food Lab to develop a new impact
assessment methodology. This brings a
consistent approach to all our social impact
assessments worldwide. It enables us to
examine our impacts from economic, social
and environmental perspectives, and to
consider a broader range of factors such
as farmer and farmworker safety.
Syngenta Annual Review 2016 18
The Good Growth Plan
Harmonizing our approach will allow us
to scale-up the number of assessments
by working with multiple partners –
customizing individual studies to suit
different countries, cultures and crops
while still obtaining rigorous, consistent
and comparable results. The new approach
is currently being tested in Indonesia.
This work will be supported by our new
global partnership with Solidaridad – an
international development organization
that has been focused for over 45 years
on social justice and the sustainable
production of food. Solidaridad’s goals are
closely aligned with those of The Good
Growth Plan, and the organization is well
respected for its work with companies
in the value chain on practical action to
improve conditions for farmers.
Putting what we learn into action
In 2016, we received the findings from
three social impact assessments
conducted in 2015 in China, India and
Mexico. These are giving us a better
understanding of our interactions with
smallholders in these countries, which will
help us to refine our go-to-market models
to increase the benefits we bring to farmers
and communities – for example, by helping
to ensure more rigorous adoption of
safe-use practices.
Not all the issues we identify can be
addressed by us alone. While prioritizing
factors we can influence directly, we
are actively seeking and developing
partnerships to drive broader change by
addressing challenges that our impact
assessments bring to light. In India, for
example, we have gained valuable insights
into the problems caused by growers’ lack
of access to microfinance. And in both
China and India there’s a need for more
effective ways of recycling our product
containers after use.
Improving yields and livelihoods
Priscar Mwangangi grows tomatoes, peppers and corn on a small plot of land in
Kenya. Heavy rains, crop disease and low-yielding seeds kept her from achieving her
dream of growing healthy plants all year round. With training and high-quality inputs
from Syngenta, her farm is now thriving. She’s helping show growers in her community
how they can improve their yields and livelihoods as well.
What’s next?
In the year ahead, we will continue
developing partnerships to tackle structural
challenges facing smallholders in areas
such as financing and access to technology
and markets. We will also be undertaking
new social impact assessments using
our new methodology in Brazil, Guatemala,
Indonesia and Mexico.
One encouraging model is the multi-
stakeholder Sustainable Table Grapes
Initiative in India, where we are one of the
partners providing input on sustainable
growing protocols. India is one of the
largest exporters of table grapes to the
European Union (EU). Sales have grown
dramatically, but further success will
depend on significant progress in areas
such as pesticide residues. Co-ordinated
by IDH, The Sustainable Trade Initiative,
this project brings together stakeholders
ranging from growers in India to retailers
in the EU with the aim of making the entire
industry more sustainable.
Syngenta Annual Review 2016 The Good Growth Plan
19
Help people
stay safe
Train 20 million farm workers on labor
safety, especially in developing countries
People trained on safe use1 m
17.2m
2020
2016
2015
2014
6.8
20.0
17.2
10.4
4.7
1 Cumulative since baseline 2014
Progress and key achievements
3 Strengthened and scaled-up train-the-
trainer initiatives through new Master
Trainer Program
3 New partnerships to improve
knowledge transfer
We share a responsibility to help improve
occupational safety and health in agriculture.
This applies particularly to smallholders,
especially those in developing countries, who
often lack access to guidance on using crop
protection efficiently, responsibly and safely.
Measuring the difference
we make
In 2016, we reached 6.8 million people with
dedicated safety training programs and
safe-use awareness-raising initiatives linked
to commercial activities. This brought the
cumulative total since 2014 to 17.2 million
and kept us well on track to meet our
20 million target by 2020. Smallholders make
up some 70 percent of the people we train
on safe use, as part of a broader training on
using our products to best effect.
Enhancing our training capability
We constantly look for ways to enhance the
reach and quality of our safe-use training.
Key to this is our train-the-trainer program,
which equips our commercial teams to
deliver high-quality training. In 2016, we
emphasized that this is central to the way
we do business by introducing a cadre
of Master Trainers who are part of our
mainstream commercial organization
rather than a specialist stewardship team.
Our target is for each of our territories to
have at least one Master Trainer responsible
for training new trainers: in its first year, the
new scheme has already covered more
than 50 percent of territories, including all
territories where we reach smallholders.
Driving real behavior change
Effective training will have a lasting effect
on farmers’ behavior. To maximize its
effectiveness, we need to ensure that
farmers and farm workers fully understand
our recommendations and why they
matter, so that actions such as using
the right personal protection or correctly
following instructions on product labels
become instinctive.
As one of the outcomes of our 2015
Farmer Safety Workshop, we have formed
a joint working group with Solidaridad to
seek deeper understanding of farmers’
behavior and ways to improve knowledge
transfer and adoption of training messages.
Our partnership on training is part of a
broader collaboration with Solidaridad
on smallholder empowerment, which also
covers aspects such as capacity building
and productivity enhancement.
What’s next?
In the year ahead, we aim to engage more
organizations in the discussion on behavior
change. To help farmers recognize the real
value of using chemicals safely, we need
to involve more of the value chain. This will
be the focus of a second Farmer Safety
Workshop. We are planning to widen the
participation of the private sector as well as
the NGOs and academics who were the
main contributors to our first workshop.
Spreading the word on safe use
Shi Lijie was trained by Syngenta on the safe use of pesticides 10 years ago.
As a corn and rice grower in Liaoning province, China, she learned first-hand how
pesticides can be applied and stored safely through the “5 Golden Rules” of safe and
effective use of crop protection products. She now leads trainings in her community
for Syngenta to help spread the word as an advocate for safety.
Syngenta Annual Review 2016 20
The Good Growth Plan
Look after
every worker
Strive for fair labor conditions
throughout our entire supply
chain network
Seed supply farms
in our Fair Labor Program %
82%
2020
2016
2015
2014
100
82
84
53
Progress and key achievements
3 All our seed suppliers in Latin America
and Asia Pacific covered by our Fair
Labor Program by end-2016
3 Of our commercial flowers farms,
73 percent have GLOBALG.A.P.
certification and 24 percent have
G.R.A.S.P. assessment
3 Two-thirds of our chemicals
suppliers covered by our Supplier
Sustainability Program
We recognize a responsibility to ensure
that our supply chain meets the highest
ethical standards, especially in developing
countries. Offering workers fair and
attractive conditions will also help
agriculture to stem the population
drift to cities that can undermine
efforts to increase production.
We are committed to ensuring fair labor
conditions across our supply chain.
But this is no simple task: our seed supply
chain – with almost 30,000 farms –
poses particular challenges.
1 www.fairlabor.org/affiliate/syngenta
2 In some countries, the growing season was still underway
when we completed our reporting year on September 30 –
so some farms monitored are not included.
We have worked with the Fair Labor
Association (FLA) since 2004 to develop
and manage our Fair Labor Program,
requiring suppliers to comply with labor-
rights codes in nine areas: Employment
Relationship; Nondiscrimination;
Harassment and Abuse; Forced Labor;
Child Labor; Freedom of Association
and Collective Bargaining; Health,
Safety and Environment; Hours of Work;
and Compensation.
Measuring the difference
we make
Each year, we aim to audit compliance
on 20 percent of farms in each country.
The findings trigger corrective action
plans and improvements to the program.
In higher-risk areas the FLA independently
audits a further 2 to 5 percent and
publishes its findings. The FLA audit
findings – together with the Syngenta
remediation plans and reports on progress
against these – are available on the
FLA website 1.
In 2016, we completed implementation of
the program in China, Colombia, Mexico
and Paraguay. At the end of the year, it
covered over 24,000 suppliers, representing
82 percent of our seed supply chain.
The slight decrease of coverage from
84 percent in 2015 is due to adaption to
local market demand for seed production
in a couple of countries in the program.
We now have 100 percent coverage of
suppliers in Latin America and Asia Pacific,
and of all countries regarded as high-risk for
labor rights. During the year we monitored
compliance at 4,500 farms representing
18 percent 2 of the farms in the program; the
FLA undertook some 20 independent audits
during the same period, visiting around
200 farms covering about 2,000 workers.
Advocating for fair labor
Renukamma Umapathi’s small family farm in southern India produces Syngenta seed.
After being trained in our Fair Labor Program, she advocates for the eradication of child
labor, workers’ rights, and issues of health and safety for farm workers. She’s been
instrumental in changing attitudes of other seed growers in her village to help keep
children out of the fields and enrolled in school.
Syngenta Annual Review 2016 The Good Growth Plan
21
What’s next?
By 2020, we will have added some 20 more
countries to our Fair Labor Program to
ensure 100 percent coverage. In 2017, we
will be rolling the program out to four more
countries in Europe; North America will
follow in 2018. We will continue working
to build rigor into our monitoring so that
we can provide robust progress reporting.
Our goal is not merely to tick compliance
boxes but to achieve real improvement.
We have come a long way, but are under
no illusions about how much more there is
to do. These are complex issues involving
many actors from farmers to governments:
we welcome discussion to share ideas and
experience, and by reporting transparently
on our progress we hope to contribute to
better informed debate.
73%
Percentage of
our commercial
flowers farms
that have
GLOBALG.A.P.
certification
Our findings correspond largely to those of
the FLA. Although some topics are more
common in certain regions, there are more
general themes – including compliance
with safety measures and trust in existing
grievance mechanisms.
A particular challenge that we are
currently addressing is compliance with
minimum wage payments to workers
on our supply farms in India. This is a
well-documented problem for agriculture
in India, as prevailing market wages
differ – sometimes significantly – from
the legal minimum wage. In 2016, we
organized a multi-stakeholder dialogue
on the topic, held jointly with the FLA, in
Hyderabad. Eleven companies representing
80 percent of the hybrid seeds industry
in India attended the meeting, along with
21 civil society delegates representing
trade unions, NGOs, research institutions,
multilateral agencies, as well as both male
and female farmers and farm workers.
Building on feedback from delegates, we
started two pilot projects – one in corn
and one in hot pepper, covering a total
of about 3,000 workers – to address the
challenge of ensuring that workers receive
the wages agreed and paid to farmers.
Other companies attending the dialogue
have also committed to run pilots in their
supplier networks.
Certifying our flower suppliers
Work continues in our flower business
to obtain certification to GLOBALG.A.P./
G.R.A.S.P. social practice standard for all
our own and third-party commercial flowers
farms. Take-up among our major suppliers
has been rapid, and by the end of the year
73 percent of farms had GLOBALG.A.P.
certification and 24 percent had undergone
the G.R.A.S.P. assessment. In some
countries, the largest challenge has been
finding auditors certified to carry out both
the GLOBALG.A.P. and G.R.A.S.P. work.
Auditing chemicals suppliers
We have a long tradition of assessing and
auditing our chemical suppliers’ compliance
with our health, safety and quality standards.
In 2015, we joined the Together for
Sustainability (TfS) initiative, which pools
the resources of its member companies
to optimize the efficiency and frequency
of supplier audits and assessments.
TfS also covers a broader range of criteria
including labor rights compliance.
During 2016, we carried out risk
assessments on all our chemical suppliers
over a certain spend and categorized them
as high-, medium- or low-sustainability risk.
We aim to bring all medium- and high-risk
suppliers into our Supplier Sustainability
Program in the coming years. In 2016,
two-thirds of our target suppliers were
covered by either our internal HSE audit
or the TfS supplier program.
For more on the TfS supplier program,
see “Supplier impacts” on page 40.
Syngenta Annual Review 2016 22
Regional performance
New technologies
driving growth
Syngenta is a global organization of some 28,000 people working
in around 90 countries. To understand and meet the needs of
farmers across a wide range of climatic conditions, we have
119 research and development sites and 107 production and supply
sites. Our teams around the world use their expertise and local
knowledge to tailor our offer and to provide solutions that create
value for growers.
In 2016, the world’s farmers faced a diversity of challenges – climatic,
economic and agronomic. In addition, they continued to come under
pressure to demonstrate that farming can be carried out sustainably.
Increasingly, Syngenta is differentiating itself not only through the
strength of its portfolio but also through The Good Growth Plan, which
represents a roadmap towards more sustainable farm practices.
Europe,
Africa and
Middle East
North
America
Pages 23−25
Pages 26−28
Latin
America
Asia Pacific
Pages 29–31
Pages 32–34
Climate change brings
unpredictable challenges
Climate change continues to bring extreme
and unpredictable weather patterns around
the globe. In 2016, this meant droughts in
much of Asia, Australia and Western and
Midwestern USA – while large parts of
Europe suffered from exceptionally cold
and wet weather. Latin America fared
rather better, with relatively benign weather
following two difficult years of drought in
the North and floods in the South.
Commodity prices put pressure
on farm investment
Weak commodity prices affected
growers across Asia, Europe and North
America. Poor returns can undermine
growers’ willingness to invest in advanced
technologies, but yield protection remains
imperative in order to avoid a further
erosion of their incomes.
In some areas, farming flourished despite
low crop prices: bright spots included
favorable conditions in Russia and
Ukraine for corn and sunflowers, and
economic measures benefiting agriculture
in Argentina.
Innovation remains
the key to success
Even in a difficult market environment,
innovation continues to be a powerful sales
driver. Our new carboxamide fungicide
SOLATENOL™ is set to make a growing
contribution to sales over the coming years.
It is the principal ingredient in a range of
new products launched in the USA in 2016
for grains, fruit and vegetables. The roll
out in Europe began with the launch of
the fungicide ELATUS™ PLUS in France,
effective against all key foliar diseases in
cereals. ELATUS™ has already achieved
significant success in Latin America and
is now being followed by the fungicide
ADEPIDYN™, which received approval
in Argentina in November.
In the USA – where growers have
been particularly affected by the weak
corn price – the success of our weed
management solutions has been reinforced
with the launch of ACURON™. This new
corn herbicide uses three modes of action
for superior weed control and protects
against rapid resistance development.
It represents a game-changing solution
for growers that also preserves soil and
water resources – both key elements of
The Good Growth Plan.
Product innovation also drove growth in
Asia Pacific, where farmers are increasingly
adopting new technologies to enhance
productivity and address the growing
problem of labor scarcity.
Syngenta Annual Review 2016 Regional performance
23
Europe, Africa and Middle East
EAME is our largest region in terms of sales. At present our business comes
mainly from Europe, which has some 20 percent of the world’s planted area –
ranging from intensive farming of field crops in Western and Central Europe
to production of high-value fruit and vegetables around the Mediterranean.
An increasing share of future sales will come from growing markets
including Russia, Ukraine and Africa.
Sandro Giacobbe
Wheat grower,
Gavorrano, Italy
1 Including headquarters (Switzerland)
Syngenta Annual Review 2016$ 3,793 mSales47Research and Development sites12,429Employees144Production and Supply sites 24
Europe, Africa and Middle East
The region delivered a solid
performance in challenging
conditions, with exceptionally
wet weather affecting the cereals
market in Western Europe.
This was more than offset by
dynamic growth in Russia and
Ukraine and a resilient performance
in other emerging markets.
3,793
3,884
4,547
Sales1 EAME $m
$3,793m
2016
2015
2014
1 Excluding Lawn and Garden
Performance highlights
3 Strong growth in Russia and
Ukraine, led by cereals
and sunflower
3 European launch of the
fungicide ELATUS™ PLUS
in France
3 Continuing success of
ACTELLIC® 300CS against
malaria vectors in Africa
The CIS countries – particularly the growth
markets of Russia and Ukraine – and
South East Europe present substantial
opportunities for modernization and
intensification and will continue to make
a significant contribution to our growth
in this region.
Africa and the Middle East currently
account for less than 9 percent of our sales
in EAME. There are major opportunities to
increase yields and sustainably intensify
production with modern technology.
Working with local partners, we aim to
help Africa ensure its self-sufficiency while
developing into a major food exporter.
Growth despite
multiple challenges
In 2016, we achieved sales growth against
a background of significant challenges
across the region. War and political
instability resulted in currency weakness
and difficult business conditions in many
parts of the CIS, Africa and the Middle East.
Rain and cold weather severely damaged
cereals production in Northern and Central
Europe and France. Low commodity
prices were a continuing challenge, limiting
growers’ willingness to invest.
Sales: driven by CIS success
Despite these headwinds, we achieved
overall sales growth of 5 percent at
constant exchange rates.
Sales growth was driven mainly by a
strong performance in Russia and Ukraine,
primarily for cereals. We also registered
market share gains in sunflowers and a
strong performance in Seedcare.
>50%
Drop in
malaria cases
reported in
Northern Ghana
after the
adoption of
ACTELLIC® 300CS
Western Europe, hit by exceptionally bad
weather and weak commodity prices, saw
a significant cereals market contraction.
France reported the worst cereals harvest
for 30 years. Nevertheless, our strong
value proposition encouraged growers to
invest in HYVIDO® hybrid barley. The poor
cereals market was partially offset by strong
demand for fungicides in specialty crops
such as potatoes and grapes, and a good
year for rice in Italy.
The vegetable seed market across the
region was challenging due to low prices
across most of North Africa and the Middle
East, and to political tension in Turkey.
Lawn and Garden sales in EAME, not
included in the regional figures reported
above, rose by 10 percent (CER) in 2016.
In the increasingly competitive Flowers
market, we benefited from successful
product launches with further new product
introductions expanding our portfolio
in 2017. In Europe and the Middle East,
we had considerable success with our
innovative tree care business, protecting
species such as palm trees against
invasive pests.
Syngenta Annual Review 2016 Regional performance
25
In Africa and the Middle East, we have
reached some 350,000 smallholders,
primarily by offering products in smaller
pack sizes with pictograms on the
labels. We are now building on a model
originally developed in India, which
involves training smallholders as lead
farmers who help with knowledge
transfer and product distribution to
neighboring growers. We have linked
our outreach to smallholders to the
expansion of safe-use training, and
we have been able to recruit many
lead farmers into this activity through
our train-the-trainer programs.
In 2016, we started preparations for
implementation of the Syngenta Fair Labor
Program with seed suppliers in Germany,
Italy, Spain and the UK. We expect
implementation to be completed in 2017.
Over 80 percent of commercial flowers
farms in EAME hold GLOBALG.A.P.
certification and more than 20 percent
a G.R.A.S.P. assessment. Both certification
and assessments are renewed yearly.
Of our chemical suppliers in EAME, over
70 percent are included in our Supplier
Sustainability Program.
The principal growth driver in Lawn and
Garden, however, was the outstanding
success of the insecticide ACTELLIC®
300CS in controlling malaria-transmitting
mosquitoes. This long-lasting insecticide
is now helping to protect an estimated
20 million people across Sub-Saharan
Africa. As an example of its impact,
Northern Ghana has seen malaria cases
fall by over 50 percent since adopting
ACTELLIC® 300CS. And after a malaria
control campaign with ACTELLIC®
300CS in Mutasa, Zimbabwe, there
was a 38 percent decline in predicted
malaria cases compared with the previous
two years.
Strong in cereals and sunflower
Our excellent performance in the CIS
countries is built on leading positions in
both crop protection and seeds. We have
particular strength in cereals, but were also
helped in 2016 by our excellent sunflower
portfolio and competitive offering in
sugar beet.
Our major new carboxamide fungicide
SOLATENOL™ provides growers with a new
tool for managing disease. EU registration
at the end of 2015 cleared the way for us
to introduce an array of new offers and
combination products for the European
cereals market. France issued our first
European country registration in July 2016,
and sales began for the 2016/17 season
under the brand name ELATUS™ PLUS.
SOLATENOL™ shows outstanding potency
and long-lasting control against all key
cereal diseases including septoria and
yellow and brown rusts. It delivers very high
levels of leaf protection and corresponding
yield benefits for the grower. We have
submitted registration applications across
Europe, and in 2016 held demonstration
days for growers in France, Germany and
the UK.
717
Number of field trials
undertaken to register
ELATUS™ PLUS
in France
Supporting delivery of
The Good Growth Plan
We are making significant progress on
all six Good Growth Plan commitments.
Our focus on sustainability is having an
increasing influence on our commercial
performance and clearly differentiates
our business model.
Our EAME farm network covers 13 crops
in 19 countries and reflects the region’s
crop diversity, climatic range and focus
on high-quality produce. In enhancing
crop productivity, we consider quality
as well as quantity to better meet the
needs of the value chain and reduce
crop wastage.
We are continuously improving how soil
conservation is built into our commercial
activities such as HYVIDO® hybrid barley,
the CONTIVO® solution or minimum
tillage in South Russia. Commercial offers
including biodiversity in loyalty programs
account for half of the benefited acreage.
We’ve had particular success in Germany.
Our loyalty program provides biodiversity
seed mixtures and planting support for
better management of field margins.
This, in turn, often attracts additional
benefits for the farmer from local rural
development plans.
Syngenta Annual Review 2016 26
North America
North America comprises Canada and the USA. It generates
about 25 percent of Syngenta’s revenue. Its growers – among the most
competitive and productive in the world – are typically early adopters
of new technologies, from crop and seed protection to soil conservation
and digital farming. The region has about 10 percent of the global
planted area, but half the world’s genetically modified seed cultivation.
Ryan Peterson
Syngenta GOLDEN HARVEST® Seed Adviser,
Pocahontas, Iowa, USA
Syngenta Annual Review 2016$ 3,202 mSales33Research and Development sites4,176Employees31Production and Supply sites Regional performance
27
In 2016, some weather challenges
and depressed commodity prices
made it harder for farmers to
invest in technology. However,
we maintained our reputation for
innovation, with new products
and new applications.
Sales1 North America $m
$3,202m
2016
2015
2014
3,202
3,410
3,582
1 Excluding Lawn and Garden
Performance highlights
3 Launched 16 new crop protection
products
3 Extended seed distribution footprint
3 Grew ENOGEN® market share and
launched into promising new markets
Around 70 percent of the region’s cultivated
area is planted with corn, soybean and
wheat, representing about 30 percent of
world production in each case. The USA is
the world’s largest seeds and traits market,
and the second largest for crop and seed
protection after Brazil. In Canada, key crops
include cereals, canola, corn, soybean
and pulses.
176ha
Average size
of a North American farm
In US Seeds, soybean sales were limited by
supply constraints, but we had a very good
year for corn. In Canada, our soybean seed
business was led by strong short-season
varieties in Western Canada.
We continued to increase both sales
and margins in corn – benefiting from
the continuing success of AGRISURE
VIPTERA®, and further growth and adoption
of AGRISURE® traits by independent seed
companies through our GREENLEAF
GENETICS® business. The market for
ENOGEN® is broadening, with 24 ethanol
plants signed up by year end.
Our Vegetables business achieved steady
growth and maintained its market share
while enhancing profitability through
portfolio mix improvement.
Lawn and Garden sales are not included
in the regional figures reported above.
In North America, they rose by 1 percent
in 2016. We further increased our market
leadership in Turf & Ornamentals through
continued emphasis on product innovation,
and we also gained share in the pest,
public health and vector control markets.
In the increasingly competitive Flowers
market, we benefited from successful
new product introductions and strong
partnerships across the value chain – with
further launches due to extend the portfolio
in 2017.
The USA is our center for seeds biological
research and development, including
genetic engineering and new plant breeding
innovations. Weed, disease and insect
resistance are a persistent challenge in
the region, and we continue to develop
technologies to help growers combat these
pressures while remaining competitive in a
generally low commodity price environment.
Helping growers tackle climate
and commodity price challenges
Water, a critical resource for agriculture, is
challenging in parts of the region. Much of
the Western and Midwest USA experienced
droughts in the first part of 2016; and in the
South, while timely rains supported good
crop yields, the weather turned dry later in
the season. As climate change brings less
predictable and more extreme weather, we
offer growers solutions such as AGRISURE
ARTESIAN® corn, which delivers strong
performance in both drought and
excessively wet conditions.
During 2016, low commodity prices had
an increasing impact on North American
farmers. While low commodity prices can
reduce farmers’ willingness to invest in
advanced technologies, our broad product
portfolios enable us to offer growers a
range of price points, and we are able
to highlight technologies designed to
protect yield.
Innovation and strong products
that perform
Excluding the impact of non-recurring
royalty income in 2015, sales were just
2 percent lower. We maintained Crop
Protection sales, despite the dry weather
in the West and South, which reduced
demand for fungicides. Sales growth was
led by strong new product introductions
including ACURON™ corn herbicide –
one of our most eagerly anticipated
product launches in recent years – and
a range of fungicides applying our
SOLATENOL™ technology.
Syngenta Annual Review 2016 28
North America
Expanding in
Crop Protection and Seeds
We continue to meet our customers’
needs with innovative solutions, and in
2016 we launched 16 significant new crop
protection products. The most important,
ACURON™ selective herbicide, combines
bicyclopyrone with three additional active
ingredients for control of the most difficult
weeds in corn. The four overlapping
modes of action provide high effectiveness
combined with strong protection
against resistance.
We also launched a range of fungicides
applying our novel SOLATENOL™
technology: TRIVAPRO™ for corn, soybean
and wheat; ELATUS™ for peanuts and
potatoes; APROVIA™ for apples, grapes
and pears; and APROVIA™ TOP for fruiting
vegetables and cucurbits. For vegetables,
potatoes and tobacco, we launched
ORONDIS™, a new mode of action
fungicide based on oxathiapiprolin.
In Seeds, we expanded our distribution
footprint by growing our seed advisor and
GOLDEN HARVEST® dealer channel –
where farmers are advisors and distributors
to their neighbors. This helped to drive
strong sales growth, particularly in corn.
Through GREENLEAF GENETICS® we
continued to expand strategic partnerships
with other seed companies, growing our
sales of traits and seeds for distribution
under partners’ own brands.
95%
Retention rate of growers in our
AGRIEDGE EXCELSIOR® farm management
program, combining Syngenta products
with computer-aided management
We have continued to build on long-
standing partnerships with conservation
groups to help farmers manage for
increased biodiversity. In 2016, this work
benefited a further 219,000 hectares
of farmland.
As part of our safe-use outreach, we
have trained more than 900 pest control
professionals in the safe and correct
application of an insect control technology
from our Lawn and Garden portfolio to
help fight the spread of the Zika virus.
We also work with our suppliers to improve
processes and implement sustainability
standards. In 2016, almost 50 percent
of our chemical suppliers were covered
by our Supplier Sustainability Program.
ENOGEN® corn is a feedstock for ethanol
plants: it delivers alpha amylase enzyme
directly in the grain, substantially enhancing
ethanol yield. It has been well received
by ethanol plants, and we now have
agreements with plants representing
almost a fifth of the accessible market.
Growers receive a premium price
for ENOGEN® corn, and by targeting
farms around ethanol plants we have
rapidly ramped up our share in these
local markets.
Syngenta has been a leader in applying
data analytics and predictive science to
plant breeding programs, accelerating the
development of new varieties with high-
performing genetics. In the USA, this work
began with soybean and we have been
extending it successfully to other crops.
Meanwhile, to maintain our leadership
in seed treatment, in 2016 we opened a
$ 21 million, 3,500-square-meter Seedcare
Institute in Minnesota.
Supporting delivery of
The Good Growth Plan
North America has a sophisticated
agricultural industry achieving high levels
of productivity through technology.
But there is still potential to increase
productivity while also ensuring that
performance is sustainable. In 2016, we
expanded our North America network
of reference farms to more than 150,
including the first Canadian reference
farms, to capture additional sustainable
productivity data for canola, wheat, peas
and barley production.
To promote soil conservation techniques
more effectively, we seeded cover crop
demonstrations at selected sites in
our Grow More Experience network of
demonstration farms. These will enable us
to show channel partners, growers and
other influencers the benefits of minimum-
tillage techniques.
Syngenta Annual Review 2016 Regional performance
Syngenta
Annual Review 2016
29
Latin America
This is the second largest of our four regions by sales. Latin America accounts
for almost 10 percent of the world’s cropped area and is the global leader
in soybean, sugar cane and coffee production. Farm scale ranges from
a predominance of smallholders in Central America to highly-technified
large-scale farms in Argentina and Brazil – where over 90 percent
of soybean and 80 percent of corn includes genetically modified traits.
Paulo Coutinho Veit
Corn and soybean grower,
Rio Grande do Sul State, Brazil
$ 3,293 mSales12Research and Development sites5,161Employees12Production and Supply sites 30
Latin America
Despite political, economic and
agricultural challenges in several
major markets, our LATAM
businesses successfully captured
opportunities while managing risks.
As a result, we retained our leading
market position, maintained pricing
discipline and improved profitability.
Sales1 Latin America $m
$3,293m
2016
2015
2014
3,293
3,632
4,279
1 Excluding Lawn and Garden
Performance highlights
3 Further penetration of INTEGRARE™
corn and soybean solutions
3 Continued success of VIPTERA™
3 New seeds operating model raising
quality and margins
The LATAM region’s main crops are
soybean (40 percent of acreage) and corn
(around 25 percent). Brazil and Argentina
are among the world’s top three exporters
of corn and soybean. Brazil is also the
leading producer and exporter of orange
juice, coffee and sugar cane, and accounts
for 67 percent of our LATAM sales.
Mexico is a key producer and exporter
of vegetables.
The region’s promise has been
overshadowed in recent years by
political and economic volatility –
exemplified in 2016 by severe disruption
in Venezuela, contrasting with business
recovery in Argentina.
Maintaining progress
in unstable conditions
After two years disrupted by El Niño – with
floods in the South and drought in the
North – a more moderate La Niña brought
relatively benign weather conditions in
2016. However, a variety of country-
specific political, economic and agricultural
challenges made 2016 a volatile year
across the region.
In times of political and economic
uncertainty, farmers are more reluctant to
invest in technological solutions and can
face problems in gaining access to finance.
In Brazil, for example, while the currency
stabilized, credit conditions remained tight.
On the upside, Argentina had a very
positive year with a turnaround in
macroeconomic policies that favored
agriculture. Andean countries saw
improvements in agronomic conditions as
rainfalls ended two years of drought, and
conditions in Mexico were also favorable
despite devaluation of the peso.
Go-to-market strategies and
financing solutions
For the full year, sales were down by
9 percent at constant exchange rates.
Excluding the change in sales terms
implemented in 2015 and 2016 the
reduction was 3 percent.
90%
Percentage of soybean production
grown from GM seeds in Argentina and
Brazil – reflecting the high degree of
modernization in these two major markets
Inevitably, sales were impacted by political
and economic volatility in key markets.
The most severely affected was Venezuela,
where our temporary suspension of
distribution due to difficulties in obtaining
payment for deliveries reduced sales by
around $ 75 million. However, we addressed
difficult conditions across the region
through action on pricing, go-to-market
strategies and financing for farmers.
We also continued to offer complete
packages of products and services to
address farmers’ needs, giving us the
opportunity to demonstrate the value
of the full breadth of our technologies.
In the North, our strengthening position in
Mexico offset challenges in the Andean
countries. In Brazil, we benefited from
our strong customer relationships as
the economy started to recover. A good
performance in the South was underpinned
by political and macroeconomic change
in Argentina.
In Crop Protection, we expect to have
increased market share with a strong
contribution from Latin America South and
some improvement in Brazil. In Seeds, we
expect to show gains in germplasm share
for corn, soybean and sunflower.
Syngenta Annual Review 2016 Regional performance
31
Smallholder inclusion programs provide
improved farming practices, better
market access and boost the prosperity
of local communities. Examples include
the MasAgro Program in Mexico, run in
partnership with the International Maize
and Wheat Improvement Center (CIMMYT),
and NUCOFFEE™ Sustentia in Brazil, which
has UTZ as a certification partner.
On biodiversity, we have made excellent
progress in Brazil. In partnership with
The Nature Conservancy and local
organizations in the Cerrado, the country’s
main agricultural region, we support
growers to preserve parts of their land
as biodiversity habitats. This outstanding
program encourages growers to go
beyond meeting national legislation
requirements. Through carefully planned
landscape connectivity, the program
benefited more than 2.8 million hectares
of farmland in 2016 and is our largest
Good Growth Plan biodiversity project.
Over the last few years, we achieved
impressive improvements in labor
conditions on our seed supply farms in
Argentina and Brazil. We have now taken
this experience to other countries, and in
2016 we completed the implementation
of our Fair Labor Program in all seed
supplying countries in the region.
Adding value
across the portfolio
Offering growers end-to-end products
and services that meet their specific
needs – helping them to increase yields,
crop quality and productivity – has
deepened customer relationships and
strengthened both margins and market
share. We can demonstrate added value
not only in crop yield but elsewhere in the
value chain. For instance, our Sillus corn
solution offers increased milk yields for
farmers who grow corn as cattle feed;
and GranoTop increases productivity in
feed grain for poultry and pork producers,
with high nutrition quality that attracts
premium prices.
In Argentina and Brazil, we continue to
increase the penetration of our high-yield
INTEGRARE™ solution for soybeans and
corn. Offering growers higher productivity
per hectare, it combines best-in-class
seeds, seed treatments and crop
protection with robust protocols and a
range of optional agronomic and financial
services including nutritional advice and risk
management tools. We now also offer the
VIPTERA™ insect-resistance trait as part of
an integrated solution including herbicide to
deliver the industry’s most comprehensive
corn insect control and yield protection.
The fungicides ELATUS™ and MAZEN™,
which are based on SOLATENOL™, are
winning increased adoption as part of a
sustainable approach to long-term fungal
control for soybean in Brazil and Paraguay.
Insecticide sales were constrained by high
channel inventories, lower pest pressure
and the growing trait adoption, which
reduces the need for crop protection.
ADEPIDYN™
Argentina was the first country
in the world to register our new
fungicide blockbuster ADEPIDYN™,
which is expected to generate
significant sales in the coming years
Seed sales showed strong growth, driven
by the success of VIPTERA™ corn in
Brazil and an uplift in corn and sunflower
sales in Argentina, where lower export
tariffs resulted in increased planting.
Profitability benefited from our new
operating model for seeds, which has led
to portfolio rationalization and improved
product quality and availability.
Supporting delivery of
The Good Growth Plan
We are making good progress on all
six commitments in LATAM.
As well as offering higher crop
productivity, our integrated solutions
generally incorporate other benefits
that support The Good Growth Plan.
For example, INTEGRARE™ in Brazil
and INTEGRASOJA™ in Latin America
South include water and soil nutrition
management services that ensure more
sustainable use of land. We’ve had
significant successes in soil conservation
across the region.
We have extended safe-use training
across the region. We doubled the number
of people trained to close to 800,000.
This increase was driven by the introduction
of the safety multiplier train-the-trainer
program in Latin America North and better
inclusion of safe-use training in the sales
team’s reporting tool in Brazil.
Syngenta Annual Review 2016 32
Asia Pacific
Accounting for 40 percent of the world’s cultivated land,
APAC is a region dominated by smallholders farming less
than 2 hectares. Changing diets and good scope for improving
yields present significant opportunities for growth.
Margareta Fatimah
Corn grower,
West Nusa Tenggara, Indonesia
Syngenta Annual Review 2016$1,839 mSales27Research and Development sites6,044Employees20Production and Supply sites Regional performance
33
40%
Asia has
40 percent
of the world’s
cropped area,
representing only
27 percent of the
world’s agrochemicals,
seeds and traits market
As the middle class grows, diets are
changing; this will result in increased
demand for high-quality vegetables and for
protein, which will be fed with cereals grown
in the region. Farmers will continue to adopt
new technology to drive yield, reliability and
quality in food production. Crop protection
technology will also need to demonstrate
improved environmental profiles and to
enable a reduction in farm labor. Corn and
rice hybrids, as well as better seed varieties,
are being adopted more widely across Asia
and genetically modified corn has been
introduced in a second market, Vietnam,
after its successful introduction in the
Philippines some 13 years ago.
Syngenta is at the forefront of this evolution
in APAC, with a broad portfolio in Seeds,
Seedcare and Crop Protection chemistry
that is being progressively adopted as
farmers intensify production and as farming
in APAC increases in complexity and scale.
Business momentum across
APAC built through the year
despite a challenging start marked
by drought across ASEAN and
Australia, a variable monsoon in
South Asia and low crop prices.
Compelling solutions in corn, rice
and vegetables – supported by
differentiation in key markets –
helped drive business growth.
Sales1 Asia Pacific $m
$1,839m
2016
2015
2014
1,839
1,837
2,033
1 Excluding Lawn and Garden
Performance highlights
3 Focus on the grower through strong
existing brands and new product
introductions in both our Seeds and
Crop Protection portfolios
3 New go-to-market model in India,
Pakistan and Thailand
3 Differentiation through
The Good Growth Plan and the
creation of strong partnerships
We are a market leader across Asia Pacific
(APAC), a region characterized by large
developed markets such as Japan and
Australia on the one hand, and a variety
of emerging markets on the other. We are
well placed to capture the opportunities
created by low levels of technology adoption,
changing consumption patterns and
demand for more food of better quality
from a rapidly emerging middle class.
Our portfolio is built around key brands in
herbicides, insecticides, fungicides and
seed treatment, supporting our overall
position as market leader. We have
successfully rejuvenated several key
brands and introduced more than 15 new
crop protection products into the region
in 2016. We see further opportunities as
farmers move to more intensive cropping
cycles, greater scale in their operations and
technology upgrades.
Momentum built through the year
The start to the year in APAC was
challenging with drought in Vietnam and
Thailand, extended dryness in Eastern
Australia, heavy rainfall in southern China,
and a delayed and variable late monsoon
in South Asia. Crop prices for corn in
particular remained low throughout the
year, reducing growers’ incentive to invest.
Weather conditions improved in the second
half, which had a positive effect on farmers’
purchasing decisions. This led to increased
investment in rice, corn, cereal and
vegetable crops, and we saw a significant
expansion of cotton acreage, leading to
greater demand for our seed treatment
products. For the full year, sales were up
2 percent (CER) having been significantly
lower in the first half.
Brand rejuvenation in ASEAN, led by
SCORE® fungicide, resulted in a strong
rebound in our performance. In China,
strong sales of FORTENZA® DUO saw
us make good gains in cereals. Our new
product introductions in Crop Protection
and Seeds in India continued to gain
momentum and now account for more
than 20 percent of our sales.
Continued growth
through differentiation
Growth in APAC will predominantly come
from developing markets, driven by an
existing portfolio of strong brands and the
delivery of value-adding customer solutions.
Syngenta will continue to differentiate itself
through innovative go-to-market models
and through our commitment to sustainable
agriculture under The Good Growth Plan.
Syngenta Annual Review 2016 34
Asia Pacific
In 2016, we introduced a new go-to-
market model in India, focused on
improving the capacity and capability of
our major distributors who are a key link
in the distribution chain. Investing in our
key channel partners and deepening this
relationship has differentiated Syngenta
from competitors and is supporting strong
demand creation at the grower level.
We are also progressively introducing
improved information systems to help
drive better customer relationships
through deeper insights and better data.
In 2016, we announced the opening in
APAC of our second Seedcare Institute.
Located in Singapore, the Institute is
focused on the effective application of
seed treatment technology in tropical
and sub-tropical markets, responding
to intensification in the use of this
innovative technology.
Supporting delivery of
The Good Growth Plan
The Good Growth Plan is a key differentiator
for Syngenta in APAC, helping to focus
our efforts on improving the sustainability
of agriculture, in particular empowering
the 400 million smallholder farmers who
are responsible for most of the agricultural
activity in the region.
The large number of smallholder farmers
in APAC means that effective stewardship
of our products is extremely important.
In 2016, we reached almost 6 million
farmers through farmer meetings, training
them in safe use with the application of
the “5 Golden Rules” of safe and effective
use of crop protection products. We also
continue to work with our distributors and
retailers to ensure they understand the
importance of safe use, recognizing that the
channel is often a key source of information
for farmers. Increasingly, we are working
to partner with external organizations
to extend the reach and impact of our
stewardship training.
In recognition of the importance of
biodiversity, we have created several
innovative partnerships to support
improvements in pollinator health.
Our early work with the Institute of
Apicultural Research within the China
Academy of Agricultural Science, the
University of Western Sydney in Australia
and the Indian Council of Agricultural
Research holds great promise for
establishing the key role that modern
agriculture can play in ensuring the health
of pollinating insects. We have also actively
extended the application and reach of
Operation Pollinator projects across APAC
to provide essential habitats for feeding and
nesting pollinators in field margins, tailored
to local conditions.
400m
APAC is home to
some 400 million
smallholders – they
grow 80 percent
of the region’s food
In 2016, we initiated a project in partnership
with Mercy Corps to address a key
constraint faced by smallholder corn
farmers in the Dompu, Bima and Sumbawa
districts of Indonesia. Finance is crucial
for these farmers if they are to access
better technology to help improve
productivity. We worked with Mercy
Corps, which provides financial literacy
training to help farmers understand their
options and better manage risk, and
a micro-finance institution that provides
low interest loans and crop insurance.
Syngenta offers agronomy knowledge
and training, and the project has resulted
in an average yield improvement of
12 percent and a 23 percent improvement
in farmer profitability.
The Good Growth Plan also commits
Syngenta to achieving significant
improvements in crop productivity.
In Bangladesh, we have recognized
that women farmers are often the key to
improving rice productivity, and we are
working to partner with local organizations
to improve women farmers’ access to
quality inputs, agronomy knowledge and
market information, all of which help to
drive significant improvements in overall
productivity and profitability.
Syngenta Annual Review 2016 Operational performance
35
Making a habit of
being ever better
Our outlook is inherently long term. We exist to support the
long-term success of the growers who feed the world. To play
our part, we must be an organization that keeps on delivering
sustainably. We aim to be flexible, innovative and efficient
in all our operations – continuously, day after day.
Making operational excellence
a permanent way of life
Our operational strategy aims to enable
profitable growth by delivering outstanding,
innovative products with scale, agility and
efficiency. Since 2014, our Accelerating
Operational Leverage (AOL) program has
focused attention across the business on
enhancing efficiency, profitability and the
experience we provide for customers.
AOL is the most recent in a series of
programs that have aimed to realize
significant operational efficiencies since
Syngenta was founded in 2000. But AOL
is more than a periodic cost efficiency
intervention: it is a systematic approach
to making sustainable productivity
improvement a routine part of the way
we work – a habit.
People
Sustainable
operations
Pages 36−37
Pages 37−40
Business
integrity
Public
debates
Pages 41–42
Pages 43–44
We are harnessing a key element of AOL
to drive a systemic, continuous improvement
capability using a standardized methodology
in operational excellence and sustaining it
over time. We are now embedding this as
a permanent part of our culture. Long after
AOL has concluded, operational excellence
will continue to help us reach new and ever
more ambitious goals.
The keys to sustainable
productivity
Operational excellence is more than
a methodology; it’s a state of mind for
continuous improvement. Its results are
delivered not by systems but by people.
So our long-term, sustained success will
continue to depend on our investment
in the talent, skills and motivation of our
people – and those who lead them.
Just as we invest in our people, we invest
in our production assets to ensure that
we have the right facilities and capacity
to satisfy demand resource efficiently
and profitably. We also work in ever-closer
partnership with our suppliers, who make
a large and expanding contribution to
our operations.
As an integral element of our operational
strategy, we focus on the long-term viability
of our internal and external operations.
Our approach is to maximize the pace
and impact of our sustainability initiatives
by focusing on the areas offering greatest
scope for resource efficiency: energy, water
and waste. We are treating our production
and logistics suppliers as additional focus
areas, given their growing role in the
sustainability of our business.
See Non-financial information and data
on pages 53–60
Syngenta Annual Review 2016 36
People
We strongly believe that leadership
and culture, together with employee
engagement, drive innovation
and outperformance. We strive
for continuous improvement in all
these areas.
Attrition rate %
2016
2015
2014
6.0
6.1
5.5
Recordable illness and injury rate
per 200,000 hours
2016
2015
2014
0.39
0.38
0.37
Developing our people
and capabilities
Leadership development is a long-term
investment, and in 2016 we implemented a
new strategic approach. We see leadership
development not as a one-time action
but as an ongoing journey that enables
individual growth aligned to organizational
needs. To increase our pipeline of
managers at every level and to accelerate
the development of our leaders, we have
launched new development “pathways”
for leaders throughout the organization.
To sharpen the strategic focus of
our reporting on investment in talent
development, in 2016 we adopted a new
KPI: leadership and talent development
investment. Our leadership and talent
development investment in 2016 totaled
$ 3.7 million (2015: $ 4.1 million).
746
The Syngenta Awards 2016 received
746 entries, which represented more than
7,000 employees from 51 countries
Employee engagement
We believe it is important to recognize
employees’ exceptional commitment and
enterprise – both to celebrate excellence
and to share inspiration and best practice.
That is the aim of the biennial Syngenta
Awards. In 2016, the program attracted
746 entries from 51 countries; the
20 finalists gathered in Basel in November
to receive their awards and share
their stories.
To foster employee engagement, it is
important to listen to our people and
act on what we learn. During the year,
we formalized and expanded our global
feedback program with the launch of
regular employee pulse surveys.
A significant development, which we believe
will help us retain talented people, is the
flexible working policy introduced in 2016.
This is designed for global implementation,
with local variations in line with local
legislation. It introduces greater flexibility
on working hours, work location and job-
sharing to help people manage their lives
better, strike a more satisfying work/life
balance and live healthier lives.
We maintained a high level of retention in
2016. The number of voluntary leavers –
excluding retirement and restructuring –
was 6.0 percent (2015: 6.1 percent).
As part of our diversity and inclusion
agenda, we have been actively working
to develop women into leadership roles.
This is now resulting in increased promotion
of women into senior management, where
the proportion of women rose to 16 percent
in 2016 (2015: 14 percent).
During the year we received external
recognition for our employment policies
and performance. Science magazine
again placed Syngenta in its annual
Top 20 employers list and ranked us
14th in 2016. In the magazine’s worldwide
survey of some 25,000 individuals and
400 HR professionals, Syngenta was cited
in particular for its social responsibility,
alignment of work culture values and
the loyalty of its people. And in Russia,
Syngenta received an AON Best Employer
Award reflecting the high level of employee
engagement there.
Women in Agribusiness (WIA) named
Syngenta as Company of the Year in its
Demeter Awards of Excellence, for our
achievements in initiating programs to
support the professional development,
achievements and overall growth of
women in the industry.
Keeping our people safe
We aim to be an industry leader in health
and safety standards and performance.
To this end, we make continuous
investments in our safety program to
sustain a top-tier Illness and Injury Rate
(IIR) of below 0.5. The rate remained low
in 2016, at 0.39 recordable incidents per
200,000 hours (2015: 0.38).
Sadly, there was one fatality during the
year: a sales employee in India was found
dead on the road beside his motorcycle.
Reports indicate that he was struck by a
speeding vehicle, which then left the scene.
Syngenta Annual Review 2016 Operational performance
37
We maintain a number of programs aimed
at reducing driving-related risks, including
online e-training focused on accident
causes. In 2016, we extended the satellite
tracking of fleet vehicles introduced in Latin
America in 2015. This monitors parameters
such as speed, seat belt use and driving
time, enabling us to identify opportunities
for improvement. It now covers some
60 percent of our fleet vehicles in Brazil,
and we have launched it in 11 countries
across Africa and Asia, including Kenya
and Bangladesh.
Further improvement is expected to
come from the integration in 2016 of
our fleet management under a single
global service team, allowing more
sophisticated monitoring and management.
Across Syngenta, the number of incidents
per million kilometers driven was 1.5 in
2016 – up slightly from 1.3 in 2015.
We believe every incident is preventable,
and since 2011 our Goal Zero initiative
has targeted zero harm to people and
zero safety incidents. It is deepening
our understanding of risks and how to
mitigate them, and sharing this knowledge
globally has underpinned the strong safety
performance of our sites worldwide.
In 2016, several of our North American
Research and Development (R&D) and
production sites were honored by external
organizations for outstanding safety
performance. In North America, we also
launched a program to assess site-safety
culture and further improve performance,
with encouraging initial results. In Brazil,
25 R&D sites completed 500 days
without a recordable incident. All our
seeds facilities in South Asia completed
1,000 days without a lost-time accident,
and the Mezotur site in Hungary completed
1,500 days without a lost-time accident.
When it comes to accidents, it’s not about luck
After several serious road accidents in Africa, we were determined to prevent further
accidents. Working with leaders in Africa and the Middle East, we sought to build a
culture of road safety through “behind the wheel” driver training for employees, leader-
led discussions and GPS monitoring for risky driving behaviors. A campaign to raise
awareness of driver safety highlighted life-changing stories of colleagues involved
in road accidents. Thanks to these efforts, we’re saving lives on the road.
Sustainable
operations
To be a sustainable business with a
long-term future, we need to invest
in efficient production capacity to
meet demand profitably. And we
must understand what we have
to do to ensure we use resources
with ever greater efficiency.
CO2e emissions intensity g/$sales
2016
2015
2014
Water usage intensity liters/$sales
2016
2015
2014
Hazardous waste intensity g/$sales
2016
2015
2014
121
124
114
2.5
2.6
2.5
15.2
14.4
15.6
The capacity to deliver efficiently
We aim to produce high-quality seeds
and crop protection products safely,
reliably, responsively and cost effectively.
This involves continually reviewing and
adjusting our own production assets
and building on established relationships
with suppliers and tollers who have
demonstrated their ability to deliver
to our quality and cost standards.
Syngenta Annual Review 2016 38
Sustainable operations
In 2016, capacity expansion projects were
completed at three key sites. We expanded
our corn seed factory in Formosa, Brazil,
and opened a new ELATUS™ fungicide
plant in Paulínia, Brazil. This is a zero
effluent plant, further improving our
environmental footprint. At Kaisten in
Switzerland we stepped-up our ability to
produce the S-Metolachlor herbicide used
in many of our successful brands.
In June, we divested our active ingredient
(AI) manufacturing site in Goa, India, to
one of our strategic suppliers, Deccan
Fine Chemicals. The other seven global
AI sites continued to increase efficiency
while maintaining their ability to deliver
at high capacity. Our principal finished-
product processing sites maintained
their Operational Excellence approach
to continuous efficiency improvement.
Our partnership approach – together with
a structured consolidation of the number
of our key suppliers – provides a platform
that drives continuous improvement
in our supply chain. We concentrate
our investment in compatible and
complementary technology and processes.
To maintain the quality of our partnerships,
we select and monitor our suppliers to
ensure their internal ways of working are
consistent with our own.
Ensuring our future viability
Our strategy for reducing external impacts
is to identify and focus on the areas
where there is the greatest opportunity for
improvement. Since 2015, we have been
working on the five focus areas set out
in the table “Making our operations more
sustainable” on this page.
Making our operations more sustainable
These are the principal activities currently underway to help us understand what’s
necessary to ensure sustainable operations and monitor our progress.
Action by focus area
Progress in 2016
Energy
Carry out detailed audits of our
top 10 sites, accounting for over
80 percent of our energy use
Set targets for Syngenta
managed facilities
Water
Establish the water footprint for the
seed supply business
Waste
Establish waste footprints for
top 10 active ingredients generating
over 80 percent of our hazardous waste
Supplier impacts
Audits completed at 30 sites, based
on EU energy requirements
Action plans created for our top 10 sites
Footprint assessment completed.
Developed water-use-optimization plans
for high-risk areas
Footprints completed. Now assessing
principal opportunities and actions for
improvement, both within Syngenta
manufacturing sites and at key active
ingredient suppliers
Rank 100 percent of procurement
categories to establish sustainability risks
Ranking assessments completed
and focus areas identified
Actively participate in the Together
for Sustainability (TfS) initiative
Agreement completed and suppliers
categorized by sustainability risk.
Roll-out plan implemented
Engage key suppliers in our audit
and support program, and key
third-party waste treatment providers
in our audit program
Supported key suppliers and providers
with audits and driving continuous
improvement initiatives targeting
process efficiency
CO2 from distribution
Adopt fourth-party logistics (4PL) to
cover our global operations in Crop
Protection and field crops
4PL roll-out underway. CO2 baselines
set for sea logistics globally and overland
logistics in Europe and North America
Syngenta Annual Review 2016 Operational performance
39
107
Number of
Production and
Supply sites
In 2016, we completed EU-standard energy
efficiency audits at 30 sites, covering
well over 80 percent of our energy use.
These audits enabled us to identify the
actions and investments offering the
greatest opportunities for improvement,
and we have developed action plans for
2017 accordingly.
Water
In 2016, water use at our manufacturing
sites was down 7 percent in absolute terms
and 2 percent in intensity. The principal
factor was the reduction in cooling water
used at our Monthey production site.
We are focusing on more efficient
water use in field production, including
sustainable water abstraction rates.
In 2016, we completed the water footprint
study commissioned in 2015 across
our seed production supply chains, as
well as our own sites, and established a
reporting framework for field production.
We undertook water risk assessments
for crops in high-risk areas as a basis for
setting management plans for optimizing
water use in these areas.
By metering and measuring in more
sophisticated ways, we are increasing
our understanding of the balance between
rain-fed and irrigation-fed water use in
fields, and how to optimize it. We aim to
implement water management plans for
all our field production in high-risk areas
by 2020.
Waste
Our active ingredient manufacturing sites
generate hazardous waste. As well as
working to reduce waste generation,
we also aim to convert or reuse more of
what we do produce, and our percentage
rates of recycling and reuse are high.
We constantly review opportunities
for optimizing both new and existing
processes, and for regenerating or
reusing unavoidable waste – usually
as an additional source of energy.
In 2016, hazardous waste generation
remained constant at 195,000 tonnes.
Reductions in manufacturing due to
efficiencies and lower production were
offset by a remediation project in Paulínia,
Brazil. This accounted for the generation of
an additional 9,500 tonnes to landfill above
normal operating activities.
Ongoing waste reduction initiatives continue
at individual site level. Although our main
focus so far has been on our own sites,
our technical teams are working with our
suppliers on how to develop waste-efficient
processes. We also completed waste
footprints for the top 10 active ingredients
producing more than 80 percent of our
waste. We are now undertaking deeper
investigations into optimizing our waste-
reduction programs.
Three of these areas concern the way
we use resources: energy, waste and
water. Our energy and waste impacts
come primarily from our production sites;
our focus has been the top 10 sites that
account for about 80 percent of our energy
footprint. While some of our manufacturing
sites use large amounts of water, our
greatest water-consuming activity by far
is seed production. So, while we continue
to work on reducing our industrial water
consumption, our focus has been on
understanding and managing water use
on our seed supply farms.
The two other focus areas concern the
way we work with suppliers and logistics
service providers. As our operating
model evolves – with greater emphasis
on partnerships – external suppliers
account for a large and growing part of
our environmental footprint. We are paying
closer attention to the ways in which
we can work with them to help them to
manage their environmental impacts.
As well as working with our production
supply chain, we are also transforming the
way we transport and store our products,
to reduce both CO2 emissions and costs.
Using resources more efficiently
A summary of our performance in each
of our focus areas follows. For more
detailed performance data, see pages
58–59. We report our performance
both in absolute terms and as intensity,
expressed per dollar of sales.
Energy
In 2016, our absolute energy consumption
reduced by 10 percent to 8,341 TJ, driven
primarily by the reduction in production
over the year. Energy intensity decreased
by 5 percent.
We have energy efficiency programs at
all our sites. These are continuous and
permanent: when targets are met, we will
set more demanding ones, and we are
focusing on the areas with the greatest
potential for improvement.
Syngenta Annual Review 2016 40
Sustainable operations
In 2016, we grouped our existing chemical
suppliers into high-, medium- and low-
impact categories. We tested the TfS audit
and assessment methodology, and started
rolling-out the TfS supplier program across
our chemical suppliers.
We have continued to refine the way
we manage third parties, working in
partnership with them. Having ranked all
our third-party suppliers for sustainability
risk and established a governance process
to track their performance, we continue to
work with key suppliers on aspects such
as process efficiency and process safety.
In 2016, our fair labor programs, which
to date have focused on countries with
the highest risk of labor abuses, include
82 percent of our suppliers. We are on
track to cover 100 percent of our suppliers
including chemicals, seeds and flowers
suppliers. For more details, see “Look after
every worker” on pages 20–21.
CO2 from distribution
We are committed to long-term CO2
intensity reduction for all our distribution
logistics: by air, sea and overland. We are
currently implementing a global program
of outsourcing, primarily to “fourth-
party logistics” partners who integrate
and co-ordinate all logistics operations
across supply chains. By standardizing
and optimizing processes and gaining
economies of scale, we expect to improve
energy- and cost-efficiency, compliance
and CO2 emissions. Over 50 percent of
our logistics footprint will be covered by
this approach by the end of 2017, with
a focus on North America and Europe.
To help us manage and measure the
benefits accurately, in 2016 we set CO2
baselines for sea logistics globally and
overland in Europe and North America.
These enable us to calculate our CO2
impacts and set targets. Baseline work will
continue for overland logistics across the
rest of the world over the next two years.
82%
Percentage of
suppliers in our
fair labor programs
Air emissions
Intensity-based and absolute greenhouse
gas emissions decreased by 2 and
7 percent respectively. Emissions from
our own operations were reduced by
22 percent partly due to the abatement
measures implemented at Huddersfield,
UK, and at Monthey, Switzerland, and to
the divestment of our manufacturing site
in Goa, India.
Supplier impacts
As we increase our reliance on external
suppliers, we seek out partners who meet
our own standards of operation. In our
drive to ensure sustainable procurement –
and to audit suppliers rigorously and
efficiently – we have joined the chemical
industry’s Together for Sustainability (TfS)
initiative. The TfS members work jointly
on supplier audits and assessments on
health, safety and the environment, as
well as social and ethical issues. The TfS
framework supports the principles of the
UN Global Compact, Responsible Care
and the International Labor Organization.
By auditing together, TfS enables us to
focus on raising standards for our suppliers
with greater efficiency.
A safety journey with our suppliers
Our process-safety management program aims to drive commitment, understanding
and improvement of safety standards at our Asian chemical manufacturers.
The program includes engagement sessions with senior management, visits to
our own manufacturing sites in Europe and a platform to encourage the sharing
of safety practices between our suppliers. Working collaboratively with our partners
is driving a step change in their safety culture and ensuring safe working conditions
for employees within our supply chain.
Syngenta Annual Review 2016 Operational performance
41
Business
integrity
We comply with all local, national
and international laws, codes
and conventions, and uphold
the principles of the Universal
Declaration of Human Rights
and the International Labor
Organization’s Core Conventions.
We expect our suppliers to do
the same.
Compliance cases reported
2016
2015
2014
214
196
96
Corporate community investment
$m
2016
2015
2014
24
24
25
True business integrity demands more
than regulatory and legal compliance.
We believe that a culture of doing the
right thing is crucial to managing risk and
growing a sustainably successful business.
It is also the essential foundation on which
The Good Growth Plan is built.
We look beyond a rules-based approach
and strive to build a values-based culture,
which we share with our partners and
suppliers. We aim to preserve the security
and integrity of our organization, operations
and products, and to engage actively with
the communities in which we operate, to
build mutual understanding and benefit.
Building a “do the right
thing” culture
Our Code of Conduct sets out clear ethical,
environmental and social responsibilities
for all employees; we expect them to
honor these and report any suspected
breaches. We also monitor our suppliers’
compliance – with both our own standards
and external regulations – on issues such
as health and safety, the environment, fair
labor practices and animal welfare.
Building a “do the right thing” culture is an
explicit line management responsibility.
We want to create a climate in which
people feel confident about speaking to
their leaders without hesitation, so that
ethical issues can be addressed before
they become problems. To drive this, we
now hold annual “leader-led” compliance
sessions throughout the organization, in
which managers discuss with their teams
relevant compliance topics and encourage
people to speak up if they have concerns.
We held the second round of these
sessions in 2016. We also began
recording the number of leaders engaged:
1,741 either attended or led a session in
2016 – which represents 95 percent of all
leaders required to participate. Building
on our experience in 2015, we sought to
engage participants more actively in 2016
by giving them real scenarios to discuss as
a group. We plan to build on this approach
year on year, and for 2017 the scenarios
will be updated to focus team dialogues
on locally relevant issues.
We recognize that compliance – not just
with legal and regulatory requirements but
with society’s evolving expectations – is
an unending journey. Maintaining the right
culture requires investment and constant
effort. So it is vital to create a climate where
people feel safe and encouraged to raise
concerns with their managers or through
our confidential compliance helpline.
In 2016, the total number of cases raised
rose by 9 percent to 214.
95%
Percentage
of leaders
attending
or leading
compliance
sessions
Significantly, this increase was
concentrated on the period during and
immediately following the compliance
sessions – clearly indicating that they are
successfully influencing the values, risk
awareness and openness of our culture.
Compliance and risk management is a
standing item on the regional, territory and
functional leadership agenda. This builds
the culture we seek and drives responsibility
down the line through the leader-led
compliance sessions. It underlines
the importance Syngenta attaches to
compliance and risk management and line
managers’ responsibility for building a
“do the right thing” culture.
We have continued working to make our
approach to compliance more systematic
and consistent globally. We are currently
rolling out a new due diligence process
to screen third-party service providers
for compliance risks as part of the
appointment process. Following successful
pilots in Argentina, China, Morocco
and Turkey in 2015, we introduced it in
nine countries including Brazil, India,
Kazakhstan, and Vietnam in 2016.
We will take a major step further in 2017
by implementing it in the countries where
we have the largest number of suppliers
and supply contracts: Switzerland, the
UK and the USA.
Syngenta Annual Review 2016 42
Business integrity
326 t
Amount of counterfeit
and illegally imported
chemicals seized
In 2016, we held workshops in nine
countries across all relevant functions –
R&D, Production and Supply, Stewardship,
Commercial and Marketing – to consider how
we can make life harder for counterfeiters.
Outcomes included enhancement of
our safe-use training to increase grower
awareness of counterfeiting in 2017, and
targeted projects to improve the security of
our seeds throughout the product life cycle.
Earning the support
of our neighbors
We believe it’s in our interests to listen to
local communities and share knowledge,
protect our common environment, promote
health and improve their quality of life.
By actively engaging with our neighbors,
we build mutual understanding – protecting
our reputation and becoming a welcome
and trusted partner wherever we operate.
Fostering open and constructive dialogue
with the local community is part of every
site manager’s job. We expect them to be
visible, available and responsive to local
concerns – whether these relate to the
impact of our operations or to community
needs that we can help to address.
Each year we report a total for our
“corporate community investment”: in 2016,
it was $ 24 million (2015: $ 24 million). But this
figure understates the value we bring to the
community. In addition to offering donations
and facilities, we believe we contribute best
when we transfer knowledge – applying the
practical skills and expertise we’ve gained
from our operations. Common examples
include improving farming practices for
local growers, providing technical support to
keep communities and schools pest-free, or
applying our expertise in managing waste.
Growing support for US food banks
Food security is not an issue for poorer nations alone. Even in rich countries, there are
people going hungry. Since 2014, we’ve partnered with Future Farmers of America to
help young volunteers in rural parts of the USA grow food in community gardens. So far,
in three years, they’ve harvested almost 16 tonnes of fresh food – donating it to needy
families and using it in their community outreach programs.
Protecting our critical assets
Our security team works with functions
across the organization to protect our
people, assets, information and products.
We assess emerging risks proactively and
train local staff in appropriate measures
to protect people and sites, focusing on
areas and activities where the risks are
greatest. Under our Security 360° program,
we evaluated 122 sites in 2016 – reflecting
a modest increase in locations classified
as risk-relevant sites compared with 2015.
Our Information Security and Information
Systems teams collaborate closely to
preserve the security and integrity of our
data. We constantly evaluate our resources
and enhance our capabilities in cybercrime
detection and prevention.
Counterfeiting of our products is not just
a commercial risk. It can harm users,
the public, the environment – and our
reputation. We work with our commercial
teams, the distribution chain, trade
associations, local law enforcement
bodies and Interpol to detect and disrupt
criminal activity. In 2016, we handled
761 cases – up from 677 in 2015, reflecting
better intelligence and detection as well as
increased activity in what is still a relatively
low-risk area for criminals.
We helped to secure seizures of
326 tonnes of counterfeit and illegally
imported chemicals (2015: 323 tonnes)
and 615 tonnes of counterfeit seeds
(2015: 91 tonnes). The sharp increase
in seeds seizures resulted in part from
our “big fish” strategy of targeting larger
cases and criminals higher up the
distribution chain.
Syngenta Annual Review 2016 Operational performance
43
Public debates
Our business environment is partly
shaped by society’s view of us, and
what it expects from corporations
like Syngenta. Over time, different
topics come to the fore: three
that we debated with a variety of
external stakeholders in 2016 were
open data, the UN’s Sustainable
Development Goals (SDGs) and
human rights.
Open data: accelerating progress
In a world where population growth
threatens to outstrip food production,
our ambition is to make a meaningful
contribution to food security. The challenge
is unprecedented in magnitude and
complexity: it won’t be met if everyone
works in isolation. Collaboration is a
necessity. We’re partnering increasingly
with governments, universities, NGOs
and other businesses – and sharing our
knowledge in new ways.
Openness is not the norm in our industry –
nor in any industry that relies on innovative
R&D and the resulting intellectual property.
But we’re finding that greater openness
can benefit all stakeholders, including us.
Technology is helping to monitor and
measure more things, and generates
huge amounts of data that can be used
to accelerate technological progress.
For instance, our R&D teams doubled the
efficiency of our soybean breeding program
by using satellite imagery, soil and weather
datasets released to the public under open
data licenses. Open data is a public good.
So shouldn’t we be sharing more of our
own in return? We think so.
Open
data
In 2016, we became
the first agrochemical
company to share RNA-based
biocontrol research as open data
Our Good Growth Plan is generating
unprecedented amounts of agronomic
and socio-economic data, primarily from
our network of over 3,700 benchmark
and reference farms in 42 countries.
We’ve collaborated with The Open Data
Institute, a non-profit organization, to put
this information into the public domain in a
way that’s easy to access and understand,
is safe to reuse and protects individual
farmers’ privacy. In this way, we aim to
extend our cooperation with partners and
universities in exploring the drivers and
impacts of technology adoption, resource
efficiency, sustainable practices and grower
livelihoods. Publishing the data also gives
us a chance to improve our metrics and
data collection processes with external
partners and stakeholders.
One of our most exciting development
areas is RNA-based biocontrols. It’s a new
technology that could bring significant
benefits to farmers and the environment.
But it’s still in its early stages: rapid
progress will depend on stimulating
informed dialogue with scientists and
researchers. To help make that happen,
in 2016 we became the first agrochemical
company to share RNA-based biocontrol
research as open data. The datasets
we’ve published include screening data for
our lead biocontrols candidate covering
both pests and beneficial species. We’re
committed to being transparent as this
technology develops.
As well as publishing open data, we’re
also improving access to the patented
intellectual property that we develop
from our data. As a founding member of
the International Licensing Platform, we
provide access to Syngenta patented native
vegetable traits and enabling technologies
through our e-licensing website – making
it easier to exchange know-how and
breeding material and to speed the
development of diverse crop varieties.
So far, we’ve made some significant strides
in increasing openness and transparency.
But as a competitive, private R&D company,
where do we draw the line about what data
to make public? And how do we decide?
The fact is, we’re still finding out – and we
welcome continuing debate.
Global goals that
challenge old habits
In 2015, the UN Sustainable Development
Summit in New York adopted 17 Sustainable
Development Goals (SDGs). These define
the UN’s development agenda up to 2030.
We welcome and support them.
They underscore the relevance and
significance of our own Good Growth Plan:
its six commitments directly contribute
to SDG2 (“zero hunger”) and significantly
support seven of the other goals. The way
we measure and report on our progress is
also closely aligned with the SDGs and their
performance measures.
As goals for humanity, the SDGs should not
excite controversy. They’re about showing
respect and consideration for our fellow
humans. But if they’re going to be more
than just aspirations, both the business
and non-business sectors are going to
have to change.
Just as The Good Growth Plan has
done for Syngenta, the SDGs require the
world to abandon old habits. We need
new ways of thinking and working, fresh
approaches that create new learning and
new opportunities. And that will mean
dismantling traditional corporate versus
non-profit silos.
Syngenta Annual Review 2016 44
Public debates
There is still too much polarization, whether
ideological, cultural or just habitual. If we,
as a society, are going to create the rapid
change that the SDGs envision, we’ll have
to challenge people who may not be in
one another’s comfort zones to embark
on deep and sustained collaboration.
The corporate sector will have to look
beyond immediate profit and embrace its
responsibility for the planet at large; the
non-business sector will need to move
beyond suspicion and find more areas
of common ground.
Things have begun to change – but too
often partnerships still fail because the
constituencies behind the organizations
are too conservative and defensive.
To mobilize action and unlock the
innovation needed, we have to build
multi-stakeholder partnerships, address
governance challenges, and invest
in new technologies and business
models. We also need better data for
sustainable development, monitoring and
accountability. As discussed earlier, more
open accessibility of key data will stimulate
collaboration and accelerate sustainable
innovation and technological advancement
for people and planet.
This is the journey we have begun with
The Good Growth Plan and its focus on
improving the sustainability of agriculture.
Our ambition is to facilitate a paradigm
shift in collaboration among governments,
NGOs, businesses, financial and donor
institutions, schools and universities.
The shared goal should be to depolarize
debate and make educated decisions
for a sustainable future where economic
growth goes hand in hand with a healthy
environment and respect for human rights.
Getting human rights right
Syngenta is a business built on a
fundamental human right. Our declared
business goal is to make a meaningful
contribution to food security – a human
right recognized by the UN.
For many years, we have worked to build
respect for people and human dignity
into everything we do – from the way we
interact with our colleagues and suppliers
to our commitment to the UN SDGs.
And we’ve made an important contribution
to supporting human rights through the role
our products, services and training play in
improving not only food security but also
access to water, farmers’ livelihoods and
rural development.
As an organization operating in over 90
countries – with supply chains employing
many thousands and with millions of
customers – we know it’s not easy. Nor do
we always get everything right. How does
an organization ensure that the wages
it pays to a seed farm end up in the
farmworkers’ pockets? How does it ensure
that its products are used safely in remote
corners of developing countries? Finding
better answers to challenges like these
is what many Syngenta people do for a
living – day in, day out. It takes vigilance,
determination and persistence.
Since 2004, we have been collaborating
with the Fair Labor Association to set and
verify fair working conditions for workers
on our seed farms: the program now
covers over 24,000 farms. For more on our
fair labor practices, see “Look after every
worker” on pages 20–21. We built specific
standards and actions on human rights into
the Code of Conduct we published in 2008.
When the UN published its Guiding
Principles on Business and Human Rights
in 2011, we welcomed them as a unique
product of multi-stakeholder consultation,
resulting in agreed roles and responsibilities
for both states and corporations. In 2012,
we joined the Global Business Initiative
on Human Rights, a collaboration of
corporations coming together to share
experiences and learn from one another.
In 2013, the launch of The Good Growth
Plan was a further sign of our determination
to engage our whole organization in making
a difference in areas beyond traditional
corporate concerns.
Over the years we have continued refining
our policies and standards to reflect current
conditions and thinking. And we have
been working with other companies to
accelerate changes that help to improve
conditions for workers and communities:
in particular, we have been encouraging
peer companies in the value chain to adopt
common standards.
But frameworks and policies and standards
can only take us so far. So, we have also
been working hard to foster a culture where
respect for human rights is explicit and
instinctive. For more on this, see “Building
a ‘do the right thing’ culture” on page 41.
By ensuring a culture where rights are
respected and concerns are freely shared,
we aim to be an organization that’s united
in constant improvement to make people’s
lives better.
See Syngenta’s point of view on a variety of
subjects at www.questions.syngenta.com
Syngenta Annual Review 2016 Performance data
Product line performance
45
Crop Protection
Selective herbicides
Sales1 $m
2016
2015
2014
2,853
2,894
3,083
Sales growth was driven by EAME and
North America. In Europe, AXIAL® continued
its success on cereals and CALLISTO®
expanded on corn in Africa and the CIS.
In North America, the main growth driver
was the continued adoption by US growers
of the novel corn herbicide ACURON™,
combining three modes of action and four
active ingredients.
Non-selective herbicides
Sales1 $m
2016
2015
2014
773
913
1,445
Performance reflected the deliberate
reduction in solo glyphosate, now complete,
undertaken in order to improve profitability.
At the same time, glyphosate prices continue
to decline. Sales of GRAMOXONE® were also
lower, with volumes in the first half affected
by dry weather in ASEAN and some price
pressure from generics in North America.
saw a strong recovery, with late season
demand in cereals and good demand on
specialty crops. Innovation continued to
expand the portfolio with the launch in the
fourth quarter of ELATUS™ PLUS in France
and MIRAVIS™ Duo (based on the fungicide
ADEPIDYN™) in Argentina.
Insecticides
Sales1 $m
2016
2015
2014
1,643
1,705
2,066
Insecticides saw growth across the
northern hemisphere, with particularly good
performances by ACTARA®, DURIVO® and
KARATE®. In Brazil, sales were affected
by low insect pressure and soybean trait
penetration, with channel inventories
remaining high. Sales in Asia Pacific, which
were affected by drought in the first half of the
year, rebounded strongly in the second half.
Seedcare
Sales1 $m
2016
2015
2014
1,003
994
1,115
CRUISER® showed good growth in a number
of European markets despite limitations on
its use for certain crops. Sales in Canada
staged a strong recovery, led by the fungicide
VIBRANCE®, which was more than offset by
lower treatment intensity and higher inventory
in the USA.
Fungicides
Sales1 $m
2016
2015
2014
3,157
3,357
3,518
Seeds
North America saw good growth as new
products ORONDIS™ and TRIVAPRO™ (based
on SOLATENOL™) gained momentum.
EAME registered growth for the full year
despite a difficult first half, when wet weather
resulted in missed sprays; the second half
Corn and soybean
Sales $m
2016
2015
2014
1,375
1,564
1,665
Sales in the fourth quarter were affected
by the non-recurrence of the $ 200 million
corn trait royalty received from KWS/
Limagrain in the fourth quarter of 2015.
This revenue was recorded in North
America ($ 145 million) and Latin America
($ 55 million). Full-year branded corn seed
sales were slightly higher in the USA but
lower in Europe due to reduced acreage.
In Latin America we saw strong underlying
growth in both Brazil and Argentina
supported by the adoption of VIPTERA™
trait technology. Soybean sales were lower
in a competitive environment.
Diverse field crops
Sales $m
2016
2015
2014
666
658
827
Sunflower sales grew strongly in Russia and
Ukraine. In addition to increased acreage,
growers continue to adopt superior
genetics with a proven track record on
the field. Sugar beet sales also increased.
Vegetables
Sales $m
2016
2015
2014
616
616
663
Demand was strong in Latin America,
notably in Brazil and Mexico, as
favorable currency rates improved
growers’ profitability in export markets.
South Asia also performed well in crops
such as cabbage, cauliflower and okra.
Price increases were achieved in all regions,
reflecting the ability to capture value from
a high-quality portfolio of hybrids.
1 Includes sales of Crop Protection products to Seeds and
excludes non-product line sales
Syngenta Annual Review 2016 46
Financial information
A summary of Syngenta’s consolidated financial statements and other financial information is provided
on pages 46 to 52. For full details and analysis of the Group’s audited financial results, prepared
in accordance with IFRS, please refer to our comprehensive Financial Report 2016, which is available
on our website www.ar2016.syngenta.com. References to EBITDA in the following financial information
excludes the impact of restructuring, impairment and discontinued operations.1
Summarized financial information 2016 and 2015
Excluding restructuring
and impairment 1
Restructuring
and impairment
As reported
under IFRS
2015
–
–
–
–
(388)
(388)
(388)
88
(300)
–
(300)
(3.26)
(3.26)
2016
12,790
6,283
(2,117)
(1,299)
(1,220)
1,647
1,361
(180)
1,181
(3)
1,178
12.80
12.79
2015
13,411
6,369
(2,210)
(1,362)
(956)
1,841
1,592
(248)
1,344
(5)
1,339
14.57
14.52
Year ended December 31 ($ m, except per share amounts)
Sales
Gross profit
Marketing and distribution
Research and development
General and administrative
Operating income
Income before taxes
Income tax expense
Net income
Attributable to non-controlling interests
Attributable to Syngenta AG shareholders
Earnings/(loss) per share ($) 2
Basic
Diluted
Gross profit margin excluding
restructuring and impairment
EBITDA4
EBITDA margin
Tax rate on results excluding restructuring
and impairment
Free cash flow 5
Trade working capital to sales6
Debt/Equity gearing 7
Net debt 7
Cash flow return on investment 8
2016
–
(6)
(26)
(8)
(437)
(477)
(477)
87
(390)
–
(390)
(4.24)
(4.24)
2016
CER3
49.6%
21.5%
2016
12,790
6,289
(2,091)
(1,291)
(783)
2,124
1,838
(267)
1,571
(3)
1,568
17.04
17.03
2015
13,411
6,369
(2,210)
(1,362)
(568)
2,229
1,980
(336)
1,644
(5)
1,639
17.83
17.78
2016
2015
49.2%
2,659
20.8%
15%
1,357
40%
29%
2,281
12%
47.5%
2,777
20.7%
17%
795
38%
31%
2,586
11%
1 For further discussion of restructuring and impairment charges, see page 52. Net income and earnings per share excluding restructuring and impairment are provided as additional
information and not as an alternative to net income and earnings per share determined in accordance with IFRS.
2 The weighted average number of ordinary shares in issue used to calculate earnings per share are as follows: For 2016 basic EPS 92,020,494 and diluted EPS 92,092,649;
for 2015 basic EPS 91,908,128 and diluted EPS 92,206,535.
3 For a description of CER, see page 52
4 EBITDA is defined on page 52
5 For a description of free cash flow, see page 52
6 Period-end trade working capital as a percentage of twelve-month sales
7 For a description of net debt and the calculation of debt/equity gearing, see page 52
8 For a description of cash flow return on investment and the calculation, see page 52
Syngenta Annual Review 2016 Performance data
47
Full year sales
Year ended December 31
Group sales
Europe, Africa and Middle East
North America
Latin America
Asia Pacific
Total regional sales
Lawn and Garden
Group sales
Crop Protection by region
Europe, Africa and Middle East
North America
Latin America
Asia Pacific
Total
Seeds by region
Europe, Africa and Middle East
North America
Latin America
Asia Pacific
Total
Sales by business
Crop Protection
Seeds
Elimination of Crop Protection sales to Seeds
Total regional sales
Lawn and Garden
Group sales
Full year product line sales
Year ended December 31
Selective herbicides
Non-selective herbicides
Fungicides
Insecticides
Seedcare
Other crop protection
Total Crop Protection
Corn and soybean
Diverse field crops
Vegetables
Total Seeds
Elimination of Crop Protection sales to Seeds
Lawn and Garden
Group sales
2016
($ m)
2015
($ m)
Actual
%
CER
%
3,793
3,202
3,293
1,839
12,127
663
12,790
2,862
2,306
2,860
1,543
9,571
973
933
448
303
2,657
9,571
2,657
(101)
12,127
663
12,790
2016
($ m)
2,853
773
3,157
1,643
1,003
142
9,571
1,375
666
616
2,657
(101)
663
12,790
3,884
3,410
3,632
1,837
12,763
648
13,411
2,892
2,326
3,249
1,538
10,005
1,017
1,116
400
305
2,838
10,005
2,838
(80)
12,763
648
13,411
2015
($ m)
2,894
913
3,357
1,705
994
142
10,005
1,564
658
616
2,838
(80)
648
13,411
-2
-6
-9
–
-5
+2
-5
-1
-1
-12
–
-4
-4
-16
+12
-1
-6
-4
-6
n/a
-5
+2
-5
Actual
%
-1
-15
-6
-4
+1
-
-4
-12
+1
-
-6
n/a
+2
-5
+5
-6
-9
+2
-2
+4
-2
+6
–
-12
+2
-2
+4
-16
+11
+2
-3
-2
-3
n/a
-2
+4
-2
CER
%
+2
-13
-4
-2
+5
-
-2
-11
+11
+3
-3
n/a
+4
-2
Syngenta Annual Review 2016
48
Financial information
Condensed consolidated income statement
Year ended December 31 ($ m, except share and per share amounts)
Sales
Cost of goods sold
Gross profit
Marketing and distribution
Research and development
General and administrative:
Restructuring
Other general and administrative
Operating income
Income from associates and joint ventures
Financial expense, net
Income before taxes
Income tax expense
Net income
Attributable to:
Syngenta AG shareholders
Non-controlling interests
Net income
Earnings per share ($ ):
Basic
Diluted
Weighted average number of shares:
Basic
Diluted
All activities were in respect of continuing operations.
Restructuring
Year ended December 31 ($ m)
Accelerating operational leverage programs:
Cash costs
Non-cash costs
Integrated crop strategy programs:
Cash costs
Acquisition, divestment and related costs:
Cash costs
Associated with industry consolidation, including ChemChina
Other acquisition and related integration costs
Non-cash items
Other non-cash restructuring and impairment:
Other non-current asset impairments
Total
2016
12,790
(6,507)
6,283
(2,117)
(1,299)
(407)
(813)
1,647
5
(291)
1,361
(180)
1,181
1,178
3
1,181
12.80
12.79
2015
13,411
(7,042)
6,369
(2,210)
(1,362)
(388)
(568)
1,841
7
(256)
1,592
(248)
1,344
1,339
5
1,344
14.57
14.52
92,020,494
92,092,649
91,908,128
92,206,535
2016
214
9
1
50
24
(12)
121
407
2015
228
12
27
62
29
1
29
388
Syngenta Annual Review 2016 Performance data
49
Condensed consolidated balance sheet
At December 31 ($ m)
Assets
Current assets:
Cash and cash equivalents
Trade receivables
Other accounts receivable
Inventories
Derivative and other financial assets
Other current assets
Income taxes recoverable
Total current assets
Non-current assets:
Property, plant and equipment
Intangible assets
Deferred tax assets
Financial and other non-current assets
Investments in associates and joint ventures
Total non-current assets
Total assets
Liabilities and equity
Current liabilities:
Trade accounts payable
Current financial debt and other financial liabilities
Income taxes payable
Other current liabilities
Provisions
Total current liabilities
Non-current liabilities:
Financial debt and other non-current liabilities
Deferred tax liabilities
Provisions
Total non-current liabilities
Total liabilities
Shareholders’ equity:
Total shareholders’ equity
Non-controlling interests
Total equity
Total liabilities and equity
2016
2015
1,284
4,543
570
3,884
500
386
189
11,356
3,298
2,863
941
440
170
7,712
19,068
(3,338)
(1,047)
(526)
(1,174)
(182)
(6,267)
(3,077)
(610)
(1,143)
(4,830)
(11,097)
(7,950)
(21)
(7,971)
(19,068)
1,141
4,128
721
4,345
401
338
124
11,198
3,383
3,040
783
396
177
7,779
18,977
(3,311)
(730)
(444)
(983)
(193)
(5,661)
(3,501)
(668)
(727)
(4,896)
(10,557)
(8,401)
(19)
(8,420)
(18,977)
Syngenta Annual Review 2016 50
Financial information
Condensed consolidated cash flow statement
Year ended December 31 ($ m)
Income before taxes
Reversal of non-cash and other reconciling items
Cash (paid)/received in respect of:
Interest and other financial receipts
Interest and other financial payments
Income taxes
Restructuring costs
Contributions to pension plans, excluding restructuring costs
Other provisions
Operating cash flow before change in net working capital
Change in net working capital:
Change in inventories
Change in trade and other working capital assets
Change in trade and other working capital liabilities
Cash flow from operating activities
Additions to property, plant and equipment
Purchases of intangible assets, investments in associates and other financial assets
Proceeds from disposals of non-current assets
Acquisitions and divestments, net
Cash flow used for investing activities
Proceeds from increases in third party interest-bearing debt
Repayments of third party interest-bearing debt
Sales/(purchases) of treasury shares and options over own shares, net
Distributions paid to shareholders
Cash flow used for financing activities
Net effect of currency translation on cash and cash equivalents
Net change in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Free cash flow
Year ended December 31 ($ m)
Cash flow from operating activities
Cash flow used for investing activities
Cash flow used for marketable securities
Cash flow (from)/used for foreign exchange movements and settlement of hedges of inter-company loans
Free cash flow
2016
1,361
1,300
363
(684)
(219)
(73)
(150)
(55)
1,843
252
(374)
86
1,807
(425)
(203)
47
60
(521)
400
(586)
92
(1,040)
(1,134)
(9)
143
1,141
1,284
2016
1,807
(521)
53
18
1,357
2015
1,592
1,203
472
(623)
(482)
(125)
(156)
(80)
1,801
32
(868)
225
1,190
(453)
(119)
120
(10)
(462)
1,098
(1,174)
(34)
(1,078)
(1,188)
(37)
(497)
1,638
1,141
2015
1,190
(462)
–
67
795
Syngenta Annual Review 2016 Performance data
Full year segmental results excluding restructuring and impairment
2016 ($ m)
Sales
Cost of goods sold
Gross profit
Marketing and distribution
Research and development
General and administrative
Operating income/(loss)
2015 ($ m)
Sales
Cost of goods sold
Gross profit
Marketing and distribution
Research and development
General and administrative
Operating income/(loss)
Europe, Africa,
Middle East
3,793
(1,801)
1,992
(545)
–
(136)
1,311
Europe, Africa,
Middle East
3,884
(1,889)
1,995
(586)
–
(126)
1,283
North
America
3,202
(1,718)
1,484
(520)
–
(103)
861
North
America
3,410
(1,779)
1,631
(537)
–
(84)
1,010
Latin
America
3,293
(1,765)
1,528
(488)
–
(57)
983
Latin
America
3,632
(2,118)
1,514
(557)
–
(39)
918
Asia
Pacific
1,839
(986)
853
(277)
–
(41)
535
Asia
Pacific
1,837
(1,012)
825
(286)
–
(35)
504
Unallocated
–
51
51
(100)
(1,239)
(406)
(1,694)
Unallocated
–
54
54
(83)
(1,310)
(274)
(1,613)
Total
Regional
12,127
(6,219)
5,908
(1,930)
(1,239)
(743)
1,996
Total
Regional
12,763
(6,744)
6,019
(2,049)
(1,310)
(558)
2,102
Lawn and
Garden
663
(282)
381
(161)
(52)
(40)
128
Lawn and
Garden
648
(298)
350
(161)
(52)
(10)
127
Segmental operating income reconciled to
segmental results excluding restructuring and impairment
Europe, Africa,
Middle East
1,204
107
North
America
793
68
Latin
America
933
50
2016 ($ m)
Operating income/(loss)
Restructuring and impairment
Operating income/(loss)
excluding restructuring
and impairment
Operating margin (%)
1,311
34.6
861
26.9
983
29.9
535
29.1
(1,694)
n/a
1,996
16.5
128
19.3
Asia
Pacific
508
27
Unallocated
(1,908)
214
Total
Regional
1,530
466
Lawn and
Garden
117
11
2015 ($ m)
Operating income/(loss)
Restructuring and impairment
Operating income/(loss)
excluding restructuring
and impairment
Operating margin (%)
Europe, Africa,
Middle East
1,155
128
North
America
973
37
Latin
America
890
28
Asia
Pacific
484
20
Unallocated
(1,781)
168
Total
Regional
1,721
381
Lawn and
Garden
120
7
1,283
33.1
1,010
29.6
918
25.3
504
27.5
(1,613)
n/a
2,102
16.5
127
19.6
51
Group
12,790
(6,501)
6,289
(2,091)
(1,291)
(783)
2,124
Group
13,411
(7,042)
6,369
(2,210)
(1,362)
(568)
2,229
Group
1,647
477
2,124
16.6
Group
1,841
388
2,229
16.6
Syngenta Annual Review 2016
52
Financial information
Constant exchange rates (CER)
Results in this report from one period to
another period are, where appropriate,
compared using constant exchange
rates (CER). To present that information,
current period results for entities reporting
in currencies other than US dollars are
converted into US dollars at the prior period’s
exchange rates, rather than at the exchange
rates for the current year. CER margin
percentages for gross profit and EBITDA are
calculated by the ratio of these measures to
sales after restating the measures and sales
at prior period exchange rates. The CER
presentation indicates the underlying
business performance before taking into
account currency exchange fluctuations.
EBITDA
EBITDA is defined as earnings before
interest, tax, non-controlling interests,
depreciation, amortization, restructuring
and impairment. Information concerning
EBITDA has been included as it is used
by management and by investors as a
supplementary measure of operating
performance. Management excludes
restructuring and impairment from EBITDA
in order to focus on results excluding items
affecting comparability from one period to
the next. EBITDA is not a measure of cash
liquidity or financial performance under
generally accepted accounting principles and
the EBITDA measures used by Syngenta
may not be comparable to other similarly
titled measures of other companies.
EBITDA should not be construed as an
alternative to operating income or cash flow
as determined in accordance with generally
accepted accounting principles.
Restructuring and
impairment before taxes
Restructuring represents the effect on
reported performance of initiating and
enabling business changes that are
considered major and that, in the opinion
of management, will have a material effect
on the nature and focus of Syngenta’s
operations, and therefore require separate
disclosure to provide a more thorough
understanding of business performance.
Restructuring includes the incremental
costs of closing, restructuring or relocating
existing operations, and gains or losses from
related asset disposals. Restructuring also
includes the costs of analyzing and
preparing for potential industry consolidation
transactions, including costs associated
with the ChemChina takeover offer, as well
as the effects of completing and integrating
significant business combinations and
divestments, including related transaction
costs, gains and losses. Recurring costs
of normal business operations and
routine asset disposal gains and losses
are excluded.
Impairment includes impairment losses
associated with major restructuring as
well as impairment losses and reversals
of impairment losses resulting from major
changes in the markets in which a reported
segment operates.
The incidence of these business changes
may be periodic and the effect on reported
performance of initiating them will vary
from period to period. Because each such
business change is different in nature and
scope, there will be little continuity in the
detailed composition and size of the reported
amounts which affect performance in
successive periods. Separate disclosure of
these amounts facilitates the understanding
of performance including and excluding items
affecting comparability. Syngenta’s definition
of restructuring and impairment may not be
comparable to similarly titled line items in
financial statements of other companies.
Free cash flow
Free cash flow comprises cash flow
from operating and investing activities:
excluding investments in and proceeds
from marketable securities, which are
included in investing activities; excluding
cash flows from and used for foreign
exchange movements and settlement of
related hedges on inter-company loans,
which are included in operating activities;
and including cash flows from acquisitions
of non-controlling interests, which are
included in financing activities.
Free cash flow is not a measure of financial
performance under generally accepted
accounting principles and the free cash
flow measure used by Syngenta may not
be identical to similarly titled measures in
other companies. Free cash flow has been
included as many investors consider it to
be a useful supplementary measure of
cash generation.
Net debt reconciliation
Net debt comprises total debt net of cash
and cash equivalents and marketable
securities. Net debt is not a measure of
financial position under generally accepted
accounting principles and the net debt
measure used by Syngenta may not be
comparable to the similarly titled measure
of other companies. Net debt has been
included as many investors consider it to be
a useful measure of financial position and risk.
The following table presents the derivation of
the debt/equity gearing ratio:
At December 31 ($m)
Net debt
Shareholders’ equity
Debt/Equity
gearing ratio (%)
2016
2,281
7,950
2015
2,586
8,401
29
31
Cash flow return on investment
Cash flow return on investment is a measure
used by Syngenta to compare cash returns
to average invested capital. Gross cash
flow used in the calculation comprises
cash flow before change in net working
capital, excluding interest and other financial
receipts and payments. Invested capital
comprises: total current assets, excluding
cash and derivative and other financial
assets; total non-current assets, excluding
non-current derivative and other financial
assets and defined benefit pension assets,
and adjusted to reflect the gross book
values of property, plant and equipment
and intangible assets; total current liabilities,
excluding current financial debt and other
financial liabilities; and deferred tax liabilities.
Syngenta Annual Review 2016 Performance data
Non-financial information
At Syngenta, non-financial information refers to quantitative and qualitative
information on strategies, policies or activities pursued towards our business,
environmental and social goals.
53
Our non-financial performance is reported
throughout this Annual Review and
quantified in the “Non-financial performance
summary” on pages 55 to 60.
Corporate Responsibility
Corporate Responsibility (CR) is integral
to our business. Our ambition is to bring
greater food security to an increasingly
populous world in an environmentally
sustainable way by creating a worldwide
step change in farm productivity. The Good
Growth Plan sets specific, ambitious
and measurable targets focused on
boosting resource efficiency, rejuvenating
ecosystems and strengthening rural
communities. We are also committed
to developing our people, reducing
our environmental footprint, enhancing
Materiality matrix
our social engagement, raising supply
chain sustainability and doing business
responsibly. Syngenta is guided by the
conviction that short-, medium- and
long-term value creation depends on
successfully integrating business, social
and environmental performance.
Corporate Responsibility
governance
Our Board-level Corporate Responsibility
Committee, chaired by the Syngenta
Chairman, acts as custodian on all CR
matters for Syngenta. At senior executive
level, the Syngenta Executive Committee
directs CR-related standards, strategy,
objectives and partnerships.
Materiality and stakeholder
engagement
We regularly assess stakeholder concerns
and expectations, as well as the issues
that we believe present the greatest
risks and opportunities for our business.
We engage with and collect feedback
from stakeholders in a variety of ways.
We listen to the grower community
through satisfaction surveys and farmers’
direct contact with our sales teams on
the ground. We also engage directly
with our employees and locally with the
communities close to our operations.
Focus
areas
Monitored
activities
l
s
r
e
d
o
h
e
k
a
t
s
o
t
e
c
n
a
t
r
o
p
m
I
Positions
Importance to Syngenta
We have three levels of disclosure
based on the importance of the
issues to our stakeholders and
to Syngenta.
Focus areas
We share our views, we
measure and evaluate
performance, and we have
set or plan to set goals or
quantitative targets on the
most important issues, in
particular our contribution
to food security.
3 Biodiversity
3 Employee wellbeing
3 Energy, hazardous waste
and water use
3 Greenhouse gas emission
management
3 Health and safety
3 Human rights and
fair labor practices
3 Land productivity
3 Logistics optimization
3 Safe and sustainable use
of our products
3 Science and intellectual property
3 Smallholder empowerment
3 Soil and water conservation
3 Supply chain sustainability
3 Talent attraction and retention
Monitored activities
We share our views and
we measure and evaluate
performance on these
issues to sustain the trust
and confidence of our
stakeholders, and for us to
be a responsible business.
3 Animals in research
3 Community relations and
stakeholder engagement
3 Corporate conduct
3 Corporate governance
3 Economic value shared
3 Environmental compliance
and liabilities
3 Other air emissions
3 Product compliance
3 Security practices
Positions
We share our views on the
issues that engage public
interest and have a bearing
on our business.
3 Biofuels
3 Biotechnology
3 Chemicals of concern
3 Climate change adaptation
3 Consolidation in the industry
3 Diminishing crop diversity and
monoculture practices
3 Food availability, affordability
and waste
3 Foreign investments in farmland
3 Local investment, hiring
and sourcing
3 Marketing practices
3 Organic agriculture
3 Pollinators and pesticide use
3 Product registration
3 Public policy and advocacy
3 Responsible practices for
product development
3 Rural development
3 Tax transparency
3 Trade
Syngenta Annual Review 2016
54
Non-financial information
Our interaction with industry associations,
non-governmental organizations,
governments and the investor community
enables us to gather feedback on our
activities and monitor issues important
to stakeholders. We conduct research
to better understand consumers’
perceptions of topics associated with
agriculture and our industry; and we aim
to be open and accessible – for example,
answering their frequently asked questions
under “Questions about Syngenta” on
our website.
Our materiality matrix, developed in 2015
and revised in 2016, sets out the most
important issues for Syngenta and our
stakeholders. This helps us identify where
we can provide the most value, drive our
strategy, allocate effort and resources,
and direct our external communication
and reporting. The most important issue
to our stakeholders is our contribution to
food security. In particular, they want to
know how our technologies and products
will enable growers to deliver sustainably
the quality and quantity of food needed
by a growing population. We contribute
to addressing this challenge through our
Good Growth Plan.
Approach to
non-financial reporting
The Non-financial performance summary
on the following pages presents data on
our progress towards four goals:
3 The Good Growth Plan
Help shape the future sustainability of
agriculture, and deliver solutions that are
better, more productive and more beneficial
to rural economies
3 People
Attract and retain talent while creating an
environment that stimulates innovation and
personal performance and development
3 Sustainable operations
Manage our environmental footprint
and maintain the highest standards
in our operations
3 Business integrity
Maintain the highest standards across
our entire business and go beyond
regulatory compliance, while benefiting
the communities and economies wherever
we operate
Our non-financial reporting covers the
operations of Syngenta Group, including
material interactions with selected third
parties as reported in the Non-financial
performance summary. Our non-financial
reporting is guided by the Global Reporting
Initiative principles and is externally assured:
see page 61. The non-financial reporting
period is October 1 to September 30.
Syngenta is a signatory to the United
Nations Global Compact. Syngenta’s
Annual Report serves as our
Communication on Progress (COP)
in implementing these principles.
Approval of Non-financial
performance summary
The information in the Non-financial
performance summary on pages 55 to 60
of the Annual Review was approved by
the Board of Directors on February 7,
2017. Syngenta’s Board of Directors
and management are responsible for
establishing and maintaining adequate
internal controls over non-financial reporting.
Syngenta’s internal controls over non-
financial reporting were designed to
provide assurance to Syngenta’s Board
of Directors and management regarding
the reliability of non-financial reporting and
the preparation and fair presentation of the
information published in the Non-financial
performance summary.
All internal controls, no matter how well
designed, have inherent limitations and
therefore may not prevent or detect
misstatements. In designing internal
controls over non-financial reporting,
Syngenta used the criteria established in
Internal Control – Integrated Framework
(2013) issued by the Committee of
Sponsoring Organizations of the
Treadway Commission (COSO).
PricewaterhouseCoopers AG, Switzerland,
an independent registered public
accounting firm, has issued an opinion
on Syngenta’s Non-financial performance
summary, which is included in the Annual
Review on page 61.
Read more on:
www.cr.syngenta.com
www.questions.syngenta.com
www.gri.syngenta.com
Syngenta Annual Review 2016 Performance data
55
Non-financial performance summary
The Good Growth Plan
Make crops more efficient 1
Total number of reference farms
Total number of benchmark farms
Average increase on reference farms 2:
Land productivity
Land productivity of smallholders
Nutrient efficiency
Pesticide field application efficiency
Average increase on benchmark farms 2:
Land productivity
Land productivity of smallholders
Nutrient efficiency
Pesticide field application efficiency
Rescue more farmland
Hectares of benefited farmland (m)
Help biodiversity flourish
Hectares of benefited farmland (m)
Empower smallholders
Smallholders reached (m) 3
Help people stay safe
People trained on safe use (m)
Of which: % of smallholders
Countries with established Syngenta product toxicovigilance programs
Crop Protection sales represented
Look after every worker
Suppliers included in fair labor programs 4
Syngenta seed producing countries included in Syngenta Fair Labor Program 5
Seed supply farms included in Syngenta Fair Labor Program
Of which: farms in Fair Labor Association (FLA)’s audit scope
Of which: seed supply farms monitored 5
Chemical suppliers included in Supplier Sustainability Program 5, 6
HSE audits at chemical suppliers 7
HSE audits at formulation, fill and packaging suppliers and seed toll manufacturing 7
HSE audits at warehouse/logistics service providers
Commercial flowers farms with valid GlobalG.A.P. certification 5
Commercial flowers farms with valid G.R.A.S.P. assessment 5
Cumulative since
baseline 2014
2016
2015
2014
1,039
2,694
1,062
2,586
860
2,738
1.2%
8.0%
1.5%
-16.2%
-2.6%
1.6%
5.3%
-19.3%
1.9%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
4.3
1.9
1.6
0.8
4.9
3.3
0.9
0.7
16.6
17.2
13.8
17.2
71%
6.8
68%
100
94%
82%
41%
82%
62%
18%
67%
67
48
137
73%
24%
5.7
71%
100
93%
–
33%
84%
69%
–
–
84
34
118
–
–
4.7
74%
100
93%
–
20%
53%
100%
–
–
72
74
156
–
–
1 Reference farms were selected by Syngenta and are recommended to use Syngenta products and follow optimized protocols. Benchmark farms were randomly selected by a third-party research
agency and represent grower practice. Reference and benchmark farms are grouped in clusters. A cluster presents homogeneous agro-climatic conditions and contains reference and/or benchmark
farms with similar grower characteristics
2 Policy on land productivity reporting was revised in 2016. Starting 2016, instead of outlining the distribution of percentage increases in land productivity, nutrient efficiency and pesticide field
application efficiency on a cluster basis, we are representing the corresponding percentage increases as global averages based on full-year harvest data. The change is to ensure consistent progress
measurement while allowing better readability. Figures are compared to baseline 2014
3 Number of smallholders reached through sales per year
4 New KPI introduced in 2016 to capture overall participation of seed supply farms, chemical suppliers and commercial flowers farms in fair labor programs
5 New KPI introduced in 2016
6 Includes only chemical suppliers categorized as posing a high or medium sustainability risk
7 Policy on HSE audit reporting was revised in 2016. Starting 2016, HSE screening assessments are excluded
Read more about how we are measuring
The Good Growth Plan on
www.data.syngenta.com
Syngenta Annual Review 2016 56
Non-financial performance summary
People
Employment
Employees 1
Europe, Africa and Middle East 2
North America
Latin America
Asia Pacific
Part-time employees
Turnover rate 3
of which: <35 years
35–50 years
>50 years
Attrition rate 4
Senior managers
Headquarters
Europe, Africa and Middle East
North America
Latin America
Asia Pacific
Diversity
Nationalities in senior management
Female employees
Female employees in management roles
Female employees in senior management
Employee development
Leadership and talent development investment ($ m) 5
Reward and recognition
Employees eligible to participate in Employee Share Purchase Plan (ESPP)
of which: employees participating
Employees participating in long-term equity incentive plans
1 Permanent full-time equivalent (FTE)
2 Including headquarters (Switzerland)
3 Includes voluntary and involuntary leavers and restructuring
4 Includes only voluntary leavers
5 New KPI introduced in 2016 to capture investment in leadership and talent development
2016
2015
2014
27,810
12,429
4,176
5,161
6,044
919
12.2%
38%
44%
18%
6.0%
334
42%
19%
18%
11%
10%
34
30%
23%
16%
28,704
13,047
4,335
4,962
6,360
984
12.5%
41%
43%
16%
6.1%
332
44%
16%
18%
12%
10%
33
30%
22%
14%
29,340
13,300
4,636
4,945
6,459
948
9.9%
43%
41%
16%
5.5%
359
42%
18%
18%
12%
10%
37
29%
21%
13%
3.7
4.1
3.5
20,066
49%
1,453
20,088
44%
1,370
20,666
44%
1,304
Syngenta Annual Review 2016 Performance data
57
People continued
Health, safety and wellbeing
Recordable injury and illness rate (IIR) per 200,000 hours 1
Recordable injury rate per 200,000 hours 1
Europe, Africa and Middle East 2
North America
Latin America
Asia Pacific
Recordable occupational illness rate per 200,000 hours 1
Europe, Africa and Middle East 2
North America
Latin America
Asia Pacific
First aid cases
Recordable injuries
Bruise, strain, sprain and dislocation
Cut and abrasion
Bone fracture
Concussion and internal injury
Multiple injuries
Other
Cases of recordable occupational illness
Cases of work-related stress
1 According to US OSHA definition for injuries and illness
2 Including headquarters (Switzerland)
2016
2015
2014
0.39
0.33
0.47
0.72
0.23
0.10
0.06
0.03
0.16
0.10
0.04
387
152
39%
20%
20%
4%
1%
16%
28
9
0.38
0.35
0.48
0.69
0.24
0.11
0.03
0.04
0.04
0.06
0.01
413
154
39%
31%
13%
3%
1%
13%
14
26
0.37
0.33
0.41
0.54
0.41
0.10
0.04
0.03
0.02
0.12
0.01
420
145
52%
19%
11%
4%
3%
11%
17
35
Syngenta Annual Review 2016 58
Non-financial performance summary
Sustainable operations
Energy
Energy intensity (MJ/$sales)
Energy (TJ)
Gas (TJ)
Electricity (TJ)
Steam (TJ)
Oil (TJ)
Other (TJ)
Greenhouse gases
Total CO2e emissions intensity (g/$sales)
Total CO2e emissions (000s tonnes)
Within direct control:
CO2e emissions from own operations (000s tonnes)
CO2 emissions from company vehicles (000s tonnes)
Within indirect control:
CO2e emissions from purchased energy (000s tonnes)
CO2 emissions from business trips (000s tonnes)
CO2 emissions from distribution (000s tonnes)
Other air emissions
Other air emissions intensity (g/$sales)
Other air emissions (tonnes)
NOx (tonnes)
Non-halogenated VOCs (tonnes)
Halogenated VOCs (tonnes)
Particulates (tonnes)
SO2 (tonnes)
NH3 (tonnes)
HCl (tonnes)
Water
Water usage intensity (liters/$sales)
Water usage (million cubic meters)
Cooling (million cubic meters)
Irrigation (million cubic meters)
Processing and washing (million cubic meters)
Product ingredient (million cubic meters)
Sewage and sanitary (million cubic meters)
Other (million cubic meters)
Origin of water:
Surface fresh water (million cubic meters)
Underground water (million cubic meters)
Drinking water from municipal network (million cubic meters)
Recovered rain water (million cubic meters)
Saline water (million cubic meters)
2016
2015
2014
0.65
8,341
3,207
2,400
1,503
336
895
0.69
9,222
3,840
2,349
1,547
536
950
0.66
9,930
3,946
2,460
1,633
854
1,037
121
1,551
124
1,660
114
1,730
445
71
381
43
611
0.071
914
402
354
17
84
42
5
10
2.5
32.6
19.0
6.5
5.2
0.2
0.9
0.8
22.6
7.2
2.7
0.1
0.0
574
70
400
36
580
0.088
1,176
462
384
26
79
210
6
9
2.6
35.0
20.8
6.8
5.3
0.2
1.1
0.8
24.4
7.8
2.7
0.1
0.0
620
75
419
43
573
0.099
1,500
523
435
32
101
386
6
17
2.5
37.8
21.2
7.0
7.3
0.3
1.0
1.0
26.7
7.7
2.9
0.1
0.4
Syngenta Annual Review 2016 Performance data
59
Sustainable operations continued
Wastewater effluents
Industrial wastewater discharge intensity (liters/$sales)
Industrial wastewater discharge (million cubic meters)
Total organic carbon (TOC) (tonnes)
Chemical oxygen demand (COD) (tonnes)
Biological oxygen demand (BOD) (tonnes)
Total suspended solids (tonnes)
Soluble salts discharged (000s tonnes)
Direct discharge of uncontaminated cooling water (million cubic meters)
Waste
Hazardous waste intensity (g/$sales)
Hazardous waste (000s tonnes)
Recycled and re-used (000s tonnes)
Incinerated (000s tonnes)
Landfill (000s tonnes)
Other (000s tonnes)
Hazardous waste by type:
Chemical
Solvents
Other
Non-hazardous waste intensity (g/$sales)
Non-hazardous waste (000s tonnes)
Recycled and re-used (000s tonnes)
Incinerated (000s tonnes)
Landfill (000s tonnes)
Other (000s tonnes)
Non-hazardous waste by type:
Plant and seed waste from seed sites
Inerts
Packaging materials
Household
Other
Environmental compliance
Significant unplanned releases 1
1 Releases that escape beyond the site boundary and cause either environmental impact and/or concern from neighbors and regulators
2016
2015
2014
0.79
10.1
504
1,556
165
295
118
19.0
0.70
9.4
649
1,953
189
294
125
20.5
15.2
195
88
83
10
14
56%
36%
8%
9.1
117
87
5
17
8
58%
9%
5%
5%
23%
14.4
193
95
83
1
14
55%
36%
9%
9.7
130
96
3
21
10
58%
8%
6%
4%
24%
0.66
10.0
687
2,059
197
370
137
21.0
15.6
236
114
106
1
15
59%
33%
8%
9.4
143
106
9
20
8
65%
4%
6%
5%
20%
0
3
0
Syngenta Annual Review 2016 60
Non-financial performance summary
Business integrity
Corporate conduct
Compliance cases reported 1
Leaders engaged in Leader-Led Compliance Sessions 2
Completion rate 2
Security management
Sites included in Syngenta Security 360° Program
Product Security cases 3
Suspect counterfeit Crop Protection product seized by authorities (tonnes) 3
Suspect counterfeit Seed product seized by authorities (tonnes) 3
Animal testing compliance
Management system audits performed in contract laboratories
Management system non-compliances found
Biotechnology and regulatory compliance
Employees completing trial regulatory compliance training
Trial locations requiring a permit 4
Trial inspections performed by Syngenta
Economic value shared
Economic value shared ($ m)
Payments to suppliers 5
Employee wages and benefits
Payments to governments (taxes) 6
Payments to providers of capital 7
Capital expenditure
Corporate community investment 8
2016
214
1,741
95%
122
761
326
615
14
0
1,378
166
123
12,350
7,301
2,801
400
1,263
561
24
2015
196
–
–
117
677
323
91
13
0
1,627
155
169
13,440
8,453
2,725
432
1,223
583
24
2014
96
–
–
105
–
–
–
17
0
1,711
411
203
14,982
9,613
2,888
366
1,285
805
25
1 Policy on reporting of compliance cases was revised in 2015. Starting 2015, the number of cases reported includes all cases managed by Group Compliance: cases reported through the compliance
helpline, line management, directly to Group Compliance or other channels. In previous years, the figure only included cases reported via the helpline
2 New KPI introduced in 2016 to capture compliance training
3 New KPI introduced in 2015 to capture counterfeiting of our products
4 In 2016, an additional 141 North American trial locations not requiring a permit were handled as regulated and managed in accordance with the North American Regulatory Compliance Program
5 Decrease in Payments to suppliers mainly reflects a continuing reduction in inventories
6 Consists of income and other taxes paid, excluding VAT (included in Payments to suppliers) and employment-related taxes (included in Employee wages and benefits)
7 Consists of expenditures for dividends, share repurchases (excluding those for employee share plans) and interest on debt
8 The PwC Independent Assurance Report includes in its scope only the Corporate community investment figure used in the calculation of Economic value shared
Syngenta Annual Review 2016 Performance data
61
Independent Assurance Report on the Syngenta Non-financial Reporting 2016
To the Board of Directors of Syngenta AG,
Basel
We have been engaged to perform
assurance procedures to provide assurance
on the Non-financial performance summary
of Syngenta AG (‘Syngenta’) included in the
Annual Review 2016 (‘Report’).
Scope and Subject matter
Our assurance engagement and the related
levels of assurance focused on the data
and information disclosed in the aggregated
non-financial reporting of Syngenta for the
financial year ended December 31, 2016.
Reasonable Assurance
The following subject matter contained
in the Report is within the scope of the
reasonable assurance:
– The application of the Syngenta reporting
guidelines for the non-financial reporting
published on The Good Growth Plan
Progress Data website; and
– The internal reporting system and
procedures to collect and aggregate
the non-financial data for the six
Good Growth Plan commitments on
page 54; and
– The data and information in the Non-financial
performance summary, in all material
aspects, on page 55, of the Report.
Limited Assurance
The related Non-financial performance
summary disclosed, in all material aspects,
on pages 56 to 60 of the Report is within the
scope of the limited assurance.
Our assurance procedures do not cover
the indicators on payments to suppliers,
employee wages and benefits, payments to
governments and providers of capital, and
capital expenditure presented in the related
Non-financial performance summary on
page 60 of the Report.
Criteria
The reporting criteria used by Syngenta
are described and disclosed on The Good
Growth Plan Progress Data website and
in the internal non-financial reporting
guidelines. These define those procedures
based on the related sections of the
‘Standard Disclosure’ of the Sustainability
Reporting Guidelines G4 published in 2013
by the Global Reporting Initiative (GRI),
by which the non-financial performance
data are internally gathered, collated
and aggregated.
Inherent Limitations
The accuracy and completeness of non-
financial performance indicators are subject
to inherent limitations given their nature
and methods for determining, calculating
and estimating such data. Accordingly, our
assurance report should therefore be read
together with the related reporting criteria.
Board of Directors’ Responsibilities
The Board of Directors of Syngenta
AG is responsible for both the subject
matter and the reporting criteria as well
as for the entire reporting process of the
selected information in accordance with
the criteria. This responsibility includes the
design, implementation and maintenance
of related internal control relevant to this
reporting process that is free from material
misstatement, whether due to fraud or error.
Our Responsibility
Our responsibility is to perform a limited
or reasonable assurance engagement
to express an opinion on positions in
the related Non-financial performance
summary on pages 55 to 60. We planned
and conducted our engagement in
accordance with International Standard
on Assurance Engagements (ISAE 3000)
(revised) ‘Assurance engagements other
than audits or reviews of historical financial
information’. That standard requires that
we comply with ethical requirements and
plan and perform our procedures to obtain
reasonable or limited assurance whether the
related Non-financial performance summary
was prepared, in all material aspects, in
accordance with the reporting criteria.
A limited assurance engagement under ISAE
3000 (revised) is substantially less in scope
than a reasonable assurance engagement
in relation to both the risk assessment
procedures, including an understanding
of internal control, and the procedures
performed in response to the assessed
risks. Consequently, the nature, timing and
extent of procedures for gathering sufficient
appropriate evidence are deliberately
limited relative to a reasonable assurance
engagement and therefore less assurance
is obtained with a limited assurance
engagement than for a reasonable
assurance engagement. The procedures
selected depend on the assurance
practitioner’s judgment.
Our Independence and Quality Control
We have complied with the independence
and other ethical requirements of the Code
of Ethics for Professional Accountants
issued by the International Ethics Standards
Board for Accountants, which is founded on
fundamental principles of integrity, objectivity,
professional competence and due care,
confidentiality and professional behavior.
Our firm applies International Standard
on Quality Control 1 and accordingly
maintains a comprehensive system of quality
control including documented policies
and procedures regarding compliance
with ethical requirements, professional
standards and applicable legal and
regulatory requirements.
Summary of work performed
Our assurance procedures included
the following work but are not limited to:
– Evaluation of the application of
group guidelines;
– Visits of different sites and offices for
various areas in France, the Netherlands,
Switzerland, and the USA selected based
on quantitative and qualitative criteria;
– Testing the specified performance
indicators on a sample basis for evidence
supporting the Non-financial performance
summary relative to completeness,
accuracy, adequacy and consistency;
– Reviewing the documentation supporting
relevant data on a sample basis, including
management and reporting structures
and documentation;
– Reviewing the management and reporting
processes. Assessing the consolidation
process of data at the group level.
We believe that the evidence we have
obtained is sufficient and appropriate to
provide a basis for our assurance conclusions.
Reasonable assurance conclusion
In our opinion,
– The Good Growth Plan guidelines as
published on The Good Growth Plan
Progress Data website are applied, in
all material aspects; and
– The internal reporting systems to collect
and aggregate The Good Growth Plan
data are functioning as designed and
provide an appropriate basis for the
reporting on page 55; and
– The data and information disclosed in the
Non-financial performance summary in
the Report on page 55 give a fair picture
of Syngenta’s non-financial performance.
Limited assurance conclusion
Based on our work performed on the
related Non-financial performance summary
nothing has come to our attention causing
us to believe that disclosed data and
information in the related Non-financial
performance summary in the Report on
pages 56 to 60 does not give a fair picture
of Syngenta’s non-financial performance,
in all material aspects, in accordance with
the reporting criteria.
PricewaterhouseCoopers AG
Zurich, February 15, 2017
Gerd Tritschler
Bettina Buomberger
Syngenta Annual Review 2016 62
Syngenta
Annual Review 2016
Corporate Governance and Compensation
Corporate Governance and Compensation at Syngenta is designed to support the
Company in its efforts to create and foster sustainable value for all stakeholders.
The following pages give a summary of our approach. For full details, please refer
to our comprehensive Corporate Governance Report and Compensation Report 2016,
which is available on our website www.ar2016.syngenta.com
Corporate Governance
The term “Corporate Governance”
encompasses the entirety of all principles,
structures, processes and practices at
Syngenta aiming at safeguarding the
sustainable interests of the Company
and its stakeholders by guaranteeing
both transparency and a healthy balance
of management and control.
Since the foundation of the Company,
its Board of Directors (the Board) has
given highest priority to the Corporate
Governance framework by proactively
and continuously implementing,
improving and disclosing best corporate
governance standards.
Syngenta’s Corporate Governance is
aligned and fully compliant with international
standards and practice. In particular, the
Company meets:
3 the legal requirements as set forth
in the Swiss Code of Obligations
3 the SIX Exchange Regulation
Directive on Information relating
to Corporate Governance
3 the standards set out in the Swiss
Code of Best Practice for Corporate
Governance, including its appendix
stipulating recommendations on
compensation for Boards of Directors
and Executive Committees
3 the Corporate Governance Standards of
the New York Stock Exchange (NYSE),
as applicable for foreign private issuers 1
3 the applicable requirements of the US
Sarbanes-Oxley Act of 2002, including
the certification of the Company’s
Annual Report on Form 20-F 2 by the
Chief Executive Officer (CEO) and the
Chief Financial Officer (CFO).
Board of Directors
Syngenta is led by a strong and experienced
Board. It currently includes representatives
with six nationalities, drawn from broad
international business and scientific
backgrounds. Its members bring diversity
in expertise and perspective to the
leadership of a complex, highly regulated,
global business.
The Board of Directors is the highest level
of management in the Company and
exercises general supervision over the
objectives and the conduct of business.
In addition, the Board takes an active role
in reviewing and enhancing corporate
governance within Syngenta. The Board
has the following non-transferable and
inalienable responsibilities:
3 ultimate direction of the business of
the Company and the giving of the
necessary directives
3 determination of the organization
of the Company
3 administration of accounting, financial
control and financial planning
3 appointment and removal of the persons
entrusted with the management and
representation of the Company
3 appointment of an Independent Proxy
in cases where the Independent Proxy
elected by the General Meeting of
Shareholders is not capable of acting
3 ultimate supervision of the persons
entrusted with the management of the
Company, specifically in view of their
compliance with the law, the Articles of
Incorporation, regulations and directives
3 preparation of the Business Report
and the Compensation Report and of
the General Meeting of Shareholders
and the carrying out of the resolutions
adopted by the General Meeting of
Shareholders
3 notification of the court if liabilities
exceed assets
3 adoption of resolutions concerning
the increase of the share capital to the
extent that such power is vested in the
Board (article 651 paragraph 4 CO),
as well as resolutions concerning the
confirmation of capital increases and
respective amendments to the Articles
of Incorporation
3 examination of the professional
qualifications of the external auditor.
The Board has delegated the authority
to manage the Company’s operations
to the Chief Executive Officer and
the Executive Committee.
Executive Committee
Under the leadership of the Chief Executive
Officer, the Executive Committee is
responsible for the active leadership
and the operative management of the
Company. The duties of the Executive
Committee comprise in particular:
3 formulation of the fundamentals
of corporate policy
3 designing the Company’s strategy
and strategic plans for the approval
of the Board
1 See section “Information policy” in the Corporate Governance
Report and Compensation Report 2016
2 The Annual Report on Form 20-F is available on
www.syngenta.com, in the section “Investors/
Financial Results”
Corporate information
Syngenta
Annual Review 2016
63
3 implementation of the strategies,
strategic plans and the periodic
assessment of the attainment of goals
Compensation principles
Syngenta’s compensation system
is based on the following principles:
3 submission of regular reports for the
attention of the Board or its Committees
3 promotion of a modern and active
leadership culture
3 provision and optimal utilization
of resources (finances,
management capacity)
3 establishment of an active
communications policy within
and outside the Company
3 systematic selection, development
and promotion of new and potential
management personnel
3 examination and approval of significant
agreements with third parties
and business activities involving
extraordinary high risks
3 establishment of guidelines for planning,
organization, finance, reporting,
information and other technology, etc.
Compensation
Compensation governance
The Compensation Committee of the
Board of Directors is the supervisory
and governing body for the Syngenta
compensation policy and practices for
members of the Executive Committee and
members of the Board of Directors. It has
the responsibility to propose, determine
and review compensation and benefits
in accordance with the authorization
levels as set out in the Compensation
Report. The Committee consists of three
independent non-executive Directors.
3 attract and retain highly qualified,
successful employees to deliver
the strategic plans and objectives
of the Company
3 encourage and reward personal
contribution and individual and team
performance in accordance with the
Company’s values
3 align reward with sustainable
performance and recognize
superior results
3 align the interests of employees,
shareholders and other stakeholders.
Overall, the Company seeks to position
itself around the relevant market
median for base salary and benefits.
Variable compensation, both short- and
long-term, is designed to ensure high
performers may achieve around upper
quartile actual total compensation.
Performance management
All employees, including senior executives,
are subject to a formal annual performance
management process. This process aims
to align individual, team and organizational
objectives, stretch performance, and
support individual development.
The process begins with goal setting at the
start of the calendar year. Corporate goals
are defined to set out the annual priorities
for the Company and to which all
employees’ individual goals are aligned.
The goals of the Executive Committee
members are reviewed and approved
by the Compensation Committee.
Performance is reviewed regularly
throughout the year, culminating in a formal
year-end performance review and an
individual performance rating. The individual
performance rating influences the variable
compensation payments and thereby
differentiates, recognizes and ultimately
rewards individual performance.
Compensation of the Executive
Committee and the Board of Directors
The Compensation Committee annually
reviews the compensation and, periodically,
pension, insurance and other benefits of
the members of the Executive Committee.
The benchmarks used are a set of relevant,
comparable companies that are selected to
provide the best representation of the labor
markets and industries in which Syngenta
competes for top talent. The compensation
of members of the Board of Directors
of Syngenta is determined by reference
to the Swiss peer group.
Compensation of employees
and managers
The compensation of all employees
is reviewed on a regular basis and
is determined by reference to total
compensation levels for comparable
jobs in relevant benchmark companies.
For example, an individual who achieves
his or her performance goals is generally
awarded compensation comparable to the
median level of compensation provided
by benchmark companies. Each country
regularly conducts market reviews and
participates in salary surveys such as those
conducted by Korn Ferry Hay Group, Aon
Hewitt, Mercer and Willis Towers Watson
plus any appropriate local surveys.
Compensation elements
Syngenta’s total compensation
package includes:
3 fixed compensation – base salary
3 variable compensation – short-term
incentive plans and, for selected leaders,
long-term incentive plans
3 benefits (including all insured benefits
and retirement/pension plans).
64
Board of Directors
at December 31, 2016
Syngenta is led by a strong and experienced Board of Directors.
The Board includes representatives with six nationalities, drawn from
broad international business and scientific backgrounds. Its members
bring diversity in expertise and perspective to the leadership of
a complex, highly-regulated global business.
1
3
5
7
2
4
6
8
1 Michel Demaré
Chairman of the Board, non-executive Director.
Chairman of the Governance & Nomination
Committee and of the Corporate
Responsibility Committee
He is also Chairman of the Syngenta
Foundation for Sustainable Agriculture
Born: 1956
Nationality: Belgian/Swiss
Initial appointment: 2012
Professional background
Michel Demaré was Chief Financial Officer and
Executive Vice President of ABB from 2005 to
February 2013, serving in addition, between late
2008 and March 2011, as the company’s President
of Global Markets. Between February and September
2008, he was ABB’s acting Chief Executive Officer.
Previously he had been Chief Financial Officer Europe
for Baxter International Inc. He joined Baxter in 2002
after 18 years at the Dow Chemical Company, where
he held various treasury and division CFO positions
in Europe (including Switzerland) and the USA.
Apart from his functions in Syngenta, Michel Demaré
is currently holding the following Board memberships:
– Listed companies: Vice Chairman of UBS Group AG
– Non-listed companies: Member of the
Supervisory Board of Louis Dreyfus Company
Holdings B.V.
In addition, he is Vice-Chairman of the Supervisory
Board of IMD Business School in Lausanne and
a member of the Advisory Board at the Institute of
Banking and Finance at the University of Zurich.
Michel Demaré holds a License in Applied
Economics from the Université Catholique de Louvain
(UCL) and an MBA from the Katholieke Universiteit
Leuven (KUL) in Belgium.
2 Jürg Witmer
Vice Chairman, non-executive Director.
Chairman of the Compensation Committee
and member of the Governance &
Nomination Committee
Born: 1948
Nationality: Swiss
Initial appointment: 2006
Professional background
Jürg Witmer joined Hoffmann-La Roche in Basel in
1978 and subsequently held a number of positions
including Legal Counsel, Assistant to the CEO,
General Manager and China Project Manager of
Roche Far East based in Hong Kong, Head of
Corporate Communications and Public Affairs at
Roche headquarters in Basel, Switzerland, and
General Manager of Roche Austria. From 1999 to
2005, he acted as Chief Executive Officer of the
Givaudan Group in Vernier/Geneva. From 2008 to
2012, he was also Chairman of Clariant AG, Basel.
Apart from his functions in Syngenta, Jürg Witmer is
currently holding the following Board memberships:
– Listed companies: Chairman of Givaudan Group
– Non-listed companies: Non-executive Director of
A. Menarini IFR Florence.
Syngenta Annual Review 2016 Corporate information
65
Jürg Witmer has a doctorate in Law from the
University of Zurich, as well as a degree in
International Studies from the Graduate Institute
of the University of Geneva.
3 Vinita Bali
Non-executive Director.
Member of the Corporate Responsibility
Committee
Born: 1955
Nationality: Indian
Initial appointment: 2012
Professional background
Vinita Bali started her career in India with the
Tata Group, and then joined Cadbury India,
subsequently working for Cadbury in the UK,
Nigeria and South Africa. From 1994 onwards, she
held a number of senior positions in marketing and
general management at The Coca-Cola Company
in the USA and Latin America, becoming Head of
Corporate Strategy in 2001, and then joined the
Zyman Group as Head of its Business Strategy
practice in the USA in 2003. From 2005 to 2014
Vinita Bali was the Managing Director of Britannia
Industries, India’s publicly listed premier food
company. Apart from her functions in Syngenta,
Vinta Bali is currently holding the following
Board memberships:
– Listed companies: Non-executive Director of
Titan Industries, CRISIL and Smith & Nephew PLC
– Non-listed companies: Chairman of GAIN
(Global Alliance for Improved Nutrition), Vice
Chairman of CARE India Solutions for Sustainable
Development, non-executive Director of
Katsuri & Sons Ltd., and Advisory Board member
of PwC in India.
She also holds Advisory or Governing Board mandates
in several institutions in the education sector.
Vinita Bali holds an MBA from The Jamnalal Bajaj
Institute of Management Studies, University of
Bombay and a Bachelor degree in Economics
from the University of Delhi.
4 Stefan Borgas
Non-executive Director.
Member of the Compensation Committee
and of the Audit Committee
Born: 1964
Nationality: German
Initial appointment: 2009
Professional background
Stefan Borgas is President and Chief Executive
Officer of RHI AG in Austria since December 1,
2016. Previously he served as CEO of Israel’s
ICL Group from September 2012 to 2016 and as
CEO of Lonza Group (Switzerland) from June 2004
to January 2012. Before this he spent 14 years
with BASF Group where he held various leadership
positions in Fine Chemicals and Engineering
Plastics in the USA, Germany, Ireland and China.
Apart from his functions in Syngenta, he holds no
other mandates in the supreme executive bodies
of listed or non-listed companies.
Stefan Borgas holds a degree in Business
Administration from the University of Saarbrücken
and an MBA from the University of St. Gallen.
7 David Lawrence
Non-executive Director.
Member of the Audit Committee
He is also Chairman of the Science and
Technology Advisory Board
5 Gunnar Brock
Non-executive Director.
Chairman of the Audit Committee and
member of the Governance &
Nomination Committee
Born: 1950
Nationality: Swedish
Initial appointment: 2012
Professional background
Gunnar Brock worked for the Tetra Pak Group for
many years, with spells in Asia, Australia and Europe,
returning – after a period as President and Chief
Executive Officer of Alfa Laval – to become President
and Chief Executive Officer of the Tetra Pak Group,
headquartered in Switzerland. From 2002 to 2009
he served as President and Chief Executive Officer
of the Atlas Copco Group. Apart from his functions
in Syngenta, Gunnar Brock is currently holding the
following Board memberships:
– Listed companies: Chairman of Stora Enso and
non-executive Director of Investor AB
– Non-listed companies: Chairman of Mölnlycke
Health Care and non-executive Director of Patricia
Industries (both 100 percent affiliates of Investor AB),
and non-executive Director of Stena AB.
Gunnar Brock holds an MBA from the Stockholm
School of Economics.
6 Eleni Gabre-Madhin
Non-executive Director.
Member of the Corporate Responsibility
Committee
Born: 1964
Nationality: Swiss
Initial appointment: 2013
Professional background
Eleni Gabre-Madhin is the co-founder and CEO of
eleni LLC, which supports the formation of commodity
exchanges across Africa, helping to promote food
security. She also founded and was CEO of the
Ethiopia Commodity Exchange. Previously, she
was a Senior Program Leader for Strategy issues
at the International Food Policy Research Institute
in Addis Ababa and worked for several institutions,
such as the World Bank in Washington (2003–2004).
Apart from her functions in Syngenta, she holds no
other mandates in the supreme executive bodies of
listed or non-listed companies.
Eleni Gabre-Madhin holds a BA in Economics from
Cornell University, a Master of Science in Agricultural
Economics from Michigan State University and
a PhD in Applied Economics (Food Research
Institute) from Stanford University. She received the
Outstanding Dissertation Award from the American
Agricultural Economics Association for her research
on grain markets in Ethiopia.
Born: 1949
Nationality: British
Initial appointment: 2009
Professional background
David Lawrence was Head Research & Development
at Syngenta from 2002 to 2008. Prior to this role,
David Lawrence was Head Research & Technology
Projects (2000–2002) for Syngenta. Prior to this,
he was Head International R&D Projects for Zeneca
Agrochemicals, having previously held several
senior scientific roles. Apart from his functions
in Syngenta, David Lawrence is currently holding
the following Board memberships:
– Non-listed companies: Chairman of the
UK Knowledge Transfer Network Ltd. and of
Agrimetrics Ltd., and non-executive Director
of Spectrum Ltd.
He is also a non-executive Director of the John
Innes Foundation (a charitable body), a member of
the UK Industrial Biotechnology Leadership Forum,
the UK Agri-FoodTech Council, the Nottingham
University Synbio Centre Advisory Board, and the
Nuffield Council on Bioethics.
David Lawrence graduated in Chemistry from
Oxford University with an MA and DPhil in
Chemical Pharmacology.
8 Eveline Saupper
Non-executive Director.
Member of the Compensation Committee
Born: 1958
Nationality: Swiss
Initial appointment: 2013
Professional background
Eveline Saupper was a partner at the commercial
law firm Homburger AG in Zurich until June 2014.
Since then, she has been Of Counsel at this law
firm. Before joining Homburger in 1985, she worked
as a tax specialist with Peat Marwick Mitchell
(today KPMG) in Zurich (1983–1985). Apart from her
functions in Syngenta, Eveline Saupper is currently
holding the following Board memberships:
– Listed companies: Non-executive Director of
Flughafen Zürich AG, Georg Fischer AG and
Clariant AG
– Non-listed companies: Chairman of Mentex
Holding AG, non-executive Director of
hkp group AG, Stäubli Holding AG and
Hoval Group.
Eveline Saupper holds a degree and PhD in Law
from the University of St. Gallen. She is admitted
to the Bar of Zurich and is a certified tax expert.
Syngenta Annual Review 2016 66
Executive Committee
at December 31, 2016
Under the leadership of the Chief Executive Officer,
the Executive Committee is responsible for the active leadership
and the operative management of the Company.
2
4
6
1
3
5
7
1 J. Erik Fyrwald
Chief Executive Officer
Member of the Corporate Responsibility
Committee
Born: 1959
Nationality: American
Appointment: 2016
Professional background
J. Erik Fyrwald was previously President and Chief
Executive Officer of Univar, a leading distributor
of chemistry and related products and services
(2012–2016); President of Ecolab, a cleaning
and sanitation, water treatment, and oil and gas
products and services provider (2011–2012); and
Chairman, President and Chief Executive Officer of
Nalco, a water treatment and oil and gas products
and services company (2008–2011). He was Group
Vice President of the Agriculture and Nutrition
Division of the E. I. du Pont de Nemours and
Company – DuPont (2003–2008). Apart from his
functions in Syngenta, J. Erik Fyrwald serves on
the Board of Directors for Eli Lilly and Company
(including their Science and Technology
Committee), CropLife International and the Swiss-
American Chamber of Commerce.
He holds a Bachelor’s degree in Chemical
Engineering from the University of Delaware and
completed the Advanced Management Program
at Harvard Business School.
2 Christoph Mäder
Head Legal & Taxes and Company Secretary
Born: 1959
Nationality: Swiss
Appointment: 2000
Professional background
Christoph Mäder was Head of Legal & Public
Affairs for Novartis Crop Protection (1999–2000)
and Senior Corporate Counsel for Novartis
International AG (1992–1998). He is Vice Chairman
of economiesuisse, the main umbrella organization
representing Swiss economy. He is also a non-
executive Director of Lonza AG (listed company),
a member of the Board of scienceindustries, the
association of Swiss chemical, pharmaceutical and
biotech industries, and a member of the Board of
the Basel Chamber of Commerce.
He graduated from Basel University Law School,
and is admitted to the Bar in Switzerland.
Syngenta Annual Review 2016 Corporate information
67
7 Jeff Rowe
President Global Seeds and North America
Born: 1973
Nationality: American
Appointment: 2016
Professional background
Prior to his current function as President Seeds
and North America, Jeff Rowe was Vice President,
Strategic Services and Planning at DuPont Pioneer
(2015–2016) and also sat on the company’s
Leadership Team (DPLT). Before, he was Regional
Director for DuPont Pioneer Europe (2011–2015),
Vice President Biotech Affairs and Regulatory
(2008–2011) and Corporate Counsel (2001–2008).
Jeff Rowe started his career with Pioneer in 1995
in Supply Management. Apart from his function
in Syngenta, he has been a member of the U.S.-
Ukraine Business Council (USUBC) Executive
Committee since 2003. Jeff Rowe holds no other
mandates in the supreme executive bodies of listed
or non-listed companies.
He has a Bachelor of Science in Agricultural
Economics from the Iowa State University, a Juris
Doctorate from Drake Law School, and a Global
Executive MBA from the NYU Stern School of
Business and the London School of Economics.
3 Patricia Malarkey
Head Research & Development
Born: 1965
Nationality: British/American
Appointment: 2014
5 Mark Patrick
Chief Financial Officer
Born: 1969
Nationality: British
Appointment: 2016
Professional background
Prior to his appointment as Chief Financial Officer,
Mark Patrick was Head Commercial Finance
at Syngenta (2011–2016). Prior to that, he was
Head Crop Protection Finance (2008–2011
and 2005–2006), Head Finance North America
Crop Protection (2006–2008), Head Business
Reporting (2003–2005) and APAC Regional Supply
Finance Head Syngenta in Hong Kong. He joined
AstraZeneca in 1993. Mark Patrick holds no other
mandates in the supreme executive bodies of listed
or non-listed companies.
He is a Chartered Management Accountant and
also holds an honors degree in Quantity Surveying
and a Post Graduate degree in Economics.
6 Mark Peacock
Head Global Operations
Born: 1961
Nationality: British
Appointment: 2007
Professional background
Mark Peacock was previously Head of Global Supply
(2003–2006) and Regional Supply Manager for Asia
Pacific (2000–2003) for Syngenta. Prior to this he
was a Product Manager in Zeneca Agrochemicals
and General Manager of the Electrophotography
Business in Zeneca Specialties. Mark Peacock
holds no other mandates in the supreme executive
bodies of listed or non-listed companies.
He has a degree in Chemical Engineering from
Imperial College, London, and a Master in
International Management from McGill University
in Montreal.
Professional background
Prior to her current function as Head Research
& Development, Patricia Malarkey was Head
Research & Development for Lawn & Garden
at Syngenta (2012−2013). Before that, she held
a number of senior scientific functions in Crop
Protection, Seeds and Biotechnology at Syngenta
in Europe and the United States. Patricia Malarkey
holds no other mandates in the supreme executive
bodies of listed or non-listed companies.
She graduated from the University of Glasgow in
Agricultural Chemistry and holds a master’s degree
in Toxicology from the University of Surrey.
4 Jonathan Parr
President Global Crop Protection and EAME,
LATAM and APAC
Born: 1961
Nationality: British
Appointment: 2015
Professional background
Prior to his current function as President Global
Crop Protection and EAME, LATAM and APAC,
Jonathan Parr was Chief Operating Officer (COO)
EAME & Latin America (2015–2016). Before that, he
was Head of Global Crops & Assets for Syngenta
(2014), Regional Director for EAME (2009–2013),
Head of Syngenta Flowers (2007–2008), Head of
Marketing and Strategy (2004–2007) and European
Manufacturing Manager (2000–2003). Before joining
Syngenta, he worked for AstraZeneca as a Factory
Manager (1998–2000), Global Product Manager
Fungicides (1996–1998) and Supply Chain Project
Manager (1994–1996). From 1987 to 1994, he held
Project and Engineering Management functions at
Imperial Chemical Industries (ICI). Jonathan Parr
holds no other mandates in the supreme executive
bodies of listed or non-listed companies.
Jonathan Parr is a Chartered Engineer and
also holds an honors Bachelor degree in Civil
Engineering from the University of Southampton as
well as a Master in Management from the University
of McGill, Canada, and a diploma in International
Management from the INSEAD Institute.
Syngenta Annual Review 2016 68
Shareholder information
%
15
10
5
0
-5
-10
-15
-20
Syngenta share price performance January 1, 2016 – December 31, 2016
(Indexed to zero at closing price on December 31, 2015)
Dec 31, 2016
CHF402.50
High: CHF432.70
Low: CHF351.20
*
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Syngenta Eurotop 300 SMI
* Closing high/low during the year
Syngenta ADS price performance January 1, 2016 – December 31, 2016
(Indexed to zero at closing price on December 31, 2015)
%
15
10
5
0
-5
-10
-15
High: $88.95
Low: $70.05
*
Dec 31, 2016
$79.05
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Syngenta ADS S&P 500 Dow Jones
* Closing high/low during the year
Syngenta shares are listed on the
SIX Swiss Exchange and on the
New York Stock Exchange, where the
shares are traded as ADS (American
Depositary Shares).1
Trading symbols
Shares
SIX Swiss
Exchange
SYNN
New York
Stock
Exchange
SYT
Shares in issue
At December 31, 2016
Total shares in issue
of which treasury shares
Number of shares
92,578,149
357,658
Share price and market capitalization 2
At December 31, 2016
Share price (CHF)
Share price ($ ) (ADS)
Market capitalization (CHF million)
Market capitalization ($ million)
402.50
79.05
37,119
36,391
Dividend history
2012
2013
2014
2015
CHF
9.50
10.00
11.00
11.00
1 1 share = 5 ADS
2 For the purposes of calculating market capitalization
the number of shares stood at 92.2 million
A full form 20-F is accessible at:
www.investors.syngenta.com
Investors can subscribe to media releases
by email or via RSS at:
www.investors.syngenta.com
The full year results press release can be
viewed at: www.media.syngenta.com
Syngenta Annual Review 2016 Shareholder information
Syngenta share price performance January 1, 2012 – December 31, 2016
(Indexed to zero at closing price on December 31, 2011)
CHF366.60
CHF355.20
CHF320.00
CHF392.30
69
Dec 31, 2016
CHF402.50
%
70
60
50
40
30
20
10
0
-10
-20
Q1
Q2
Q3
Q4
2012
Q1
Q2
Q3
Q4
2013
Q1
Q2
Q3
Q4
2014
Q1
Q2
Q3
Q4
2015
Q1
Q2
Q3
Q4
2016
Syngenta Eurotop 300 SMI
Syngenta ADS price performance January 1, 2012 – December 31, 2016
(Indexed to zero at closing price on December 31, 2011)
$80.80
$79.94
$64.24
$78.73
%
80
70
60
50
40
30
20
10
0
-10
Dec 31, 2016
$79.05
Q1
Q2
Q3
Q4
2012
Q1
Q2
Q3
Q4
2013
Q1
Q2
Q3
Q4
2014
Q1
Q2
Q3
Q4
2015
Q1
Q2
Q3
Q4
2016
Syngenta ADS S&P 500 Dow Jones
Syngenta share price performance since creation of the Company November 17, 2000 – December 31, 2016
(Indexed to zero at closing price on November 17, 2000)
%
950
900
800
700
600
500
400
300
200
100
0
-50
Dec 31, 2016
$79.05
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Syngenta Syngenta ADS
Syngenta Annual Review 2016 Syngenta supports the
10 principles of the United
Nations Global Compact
through an established
commitment to Corporate
Responsibility and ongoing
implementation of
policies on human rights,
fair labor, environmental
protection and anti-corruption.
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2
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Switzerland
Investor Relations
T +41 61 323 5883
F +41 61 323 5880
E global.investor_relations@syngenta.com
Media Relations
T +41 61 323 2323
F +41 61 323 2424
E media.relations@syngenta.com
Share Register
T +41 41 798 4833
F +41 41 798 4849
E syngenta@devigus.com
Shareholder Services
T +41 61 323 2121
F +41 61 323 5461
E shareholder.services@syngenta.com
Corporate Responsibility
E csr@syngenta.com
Syngenta switchboard
T +41 61 323 1111
F +41 61 323 1212
USA
Investor Relations
T +1 202 737 6521
E global.investor_relations@syngenta.com
Media Relations
T +1 202 737 8913
Contacts for ADS holders
T +1 866 253 7068 – from within the USA
T +1 201 680 6825 – from outside the USA
E shrrelations@cpushareownerservices.com
Syngenta AG
Corporate Affairs
P.O. Box
CH-4002 Basel
Switzerland
www.syngenta.com
For the business year 2016, Syngenta has
published three books: the Annual Review 2016
(including information about our non-financial
performance), the Financial Report 2016,
and the Corporate Governance Report and
Compensation Report 2016.
All documents were originally published
in English. The Annual Review 2016 and
the Corporate Governance Report and
Compensation Report 2016 are also
available in German.
These publications are available
on the Internet: www.syngenta.com
© 2017 Syngenta AG, Basel, Switzerland.
All rights reserved.
Editorial completion: February 2017
Copywriting: KainesLang,
Berwick-upon-Tweed, UK
Design and production: Radley Yeldar,
London, UK
® Registered trademarks of a Syngenta
Group Company
™ Trademarks of a Syngenta Group Company
The SYNGENTA Wordmark and BRINGING
PLANT POTENTIAL TO LIFE are registered
trademarks of a Syngenta Group Company.
Cautionary statement regarding forward-looking
statements: This document contains forward-
looking statements, which can be identified by
terminology such as “expect”, “would”, “will”,
“potential”, “plans”, “prospects”, “estimated”,
“aiming”, “on track” and similar expressions.
Such statements may be subject to risks and
uncertainties that could cause the actual results
to differ materially from these statements.
We refer you to Syngenta’s publicly available
filings with the US Securities and Exchange
Commission for information about these
and other risks and uncertainties. Syngenta
assumes no obligation to update forward-
looking statements to reflect actual results,
changed assumptions or other factors.
This document does not constitute, or form
part of, any offer or invitation to sell or issue,
or any solicitation of any offer, to purchase
or subscribe for any ordinary shares in
Syngenta AG, or Syngenta ADSs, nor
shall it form the basis of, or be relied on
in connection with, any contract therefor.