Lindt & Sprüngli
CONSUMERSERVICE-IN@LINDT.COM

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Dear Mr. Sotak,

Thank you very much for taking the time to contact us and for your interest in our products. The sourcing of raw materials - their origin, production and quality - is a topic of central importance for the whole Lindt & Sprüngli Group. Your inquiry has been forwarded to me at the Lindt & Sprüngli Headquarter in Switzerland. I take this opportunity to give you some Information on the efforts we take in this field:

We understand and accept your point and your displeasure about the palm oil discussion. For the production of our solid chocolate, the only vegetable fat Lindt & Sprüngli uses is pure cocoa butter. In some fillings we use other vegetable oils and fats, including palm oil, who we utilized for decades in small quantities. When developing new products, we rigorously screen the use of palm oil in each case and also search for alternatives.

Palm oil has unique characteristics in terms of melting behavior, as well as a neutral taste and solid consistency at room temperature. This enables us to abstain from using hydrogenated vegetable fats. In this context, we would point out that none of our products contains trans fats.

We understand the concerns regarding the use of palm oil, particularly with respect to the protection of rain forests and biodiversity. Although our products only account for around 0.005 % of global palm oil harvest, we are aware of the consequences of uncontrolled palm oil cultivation and are tackling the problem by engaging for sustainable palm oil production and entering into the following commitments:

• Lindt & Sprüngli is an active member of the Round Table on Sustainable Palm Oil (RSPO) founded by WWF in 2004 (www.rspo.org). This is the largest international organization promoting sustainable palm oil. • With a score of 9 points, Lindt & Sprüngli is ranked among the top performers in the current WWF's Palm Oil Buyers' Scorecard 2016 for the sourcing of sustainable palm oil. The full list can be found at https://palmoilscorecard.panda.org/check-the-scores/manufacturers/lindt-spruengli • Lindt & Sprüngli is globally sourcing exclusively 100% certified sustainable palm oil under RSPO segregation standard since December 2015. Under the RSPO standard "Segregated Palm Oil", the source can be traced back to RSPO certified mills and plantations. "Segregated Palm Oil", see also https://www.rspo.org/about/how-we-work • Lindt & Sprüngli's Supplier Code of Conduct sets down the criteria that our suppliers are expected to meet in areas such as compliance with laws and regulations, corruption and bribery, social and working conditions, child labor and environmental protection. They must agree in writing to be bound by this Code. At the same time we require the suppliers themselves to ensure that these criteria are also respected by their employees, contractors, subcontractors and other suppliers with whom they cooperate in delivering goods and services to Lindt & Sprüngli.

For information on our current palm oil usage, as well as the latest progress report, please see our website https://www.lindt-spruengli.com/palmoil/. Sustainable and socially responsible business practices are firmly integrated into the Lindt & Sprüngli Credo. All the relevant aspects are directed and controlled at the highest organizational level by a dedicated CSR Committee comprising members from our Board of Directors. Our entire organization - not just individual subsidiaries and brands - is committed to the sustainable management of all resources, including the sourcing of raw materials (see our sustainability web page https://www.lindt-spruengli.com/sustainability/). Our premium chocolate products must meet very high quality and safety standards. We therefore take our responsibility very seriously when it comes to sourcing raw materials, processing the ingredients, and general food safety. These very stringent standards are set down in writing in our product specifications and are regularly monitored. Our products are only allowed to leave the factory if we are confident that they meet our quality standards.

We trust you find this information useful.

Many regards from Switzerland,

Tullia Mussetola