EUDR STANDARD COMPLIANCE GUARANTEE

FIRST: In my capacity as Director, and acting on behalf of Sierra Naturals, I certify that we are implementing a comprehensive four-step compliance plan to align with the requirements of the EUDR legislation. This plan aims to ensure that all plots that are part of our cocoa supply chain are free of deforestation after December 31, 2020.

SECOND: We are currently in STAGE 1: Initial Diagnosis and Evaluation of Plots; in which we are conducting a comprehensive analysis of all registered cocoa plots in our organic farmer system. This analysis covers farmers located in the departments of San Martin, Ucayali and Junin, whose plots have been geo-referenced and coded individually to ensure the accuracy and traceability of the information.

THIRD: The main objective of STAGE 1 is to verify the deforestation status of the plots after December 31, 2020. To achieve this objective, we have implemented the following assessment methodologies:
1. Oral statements and testimonies from producers: historical information on land use is collected through structured interviews, allowing a first validation of the age and nature of crops in each plot.

2. Satellite image analysis: Satellite images captured as of December 31, 2020 are being used to evaluate land use at that date. This analysis allows us to identify if the plots were dedicated to cocoa crop, other crops, fallow, or primary forest.

3. Physical field surveys: In cases where satellite images are not available or are inconclusive, physical surveys are conducted to determine the age of the plantations through direct observation and dendrochronological analysis (where applicable).

FOURTH: To date, we have made significant progress in the assessment through oral statements, and we are working on obtaining the georeferenced

polygons of all plots; after that, we will proceed to correlate this data with the 2020 satellite images.
With the work done to date, we can preliminarily state that 59% of the cocoa in our supply chain comes from non-deforested fields. This information will be validated during October 2024 where we will conclude the work of the first stage.

FIFTH: According to STAGE 2: Classification of Plots; once the evaluation is completed, the plots will be classified into one of the following categories:
- EUDR Compliant: Plots where cocoa plantations were established prior to December 31, 2020; or where replanting have taken place in areas previously used for other crops.

- Non-compliant with EUDR: Plots that, after evaluation, are determined to have been established in areas that were primary forest after December 31, 2020.

SIXTH: In STAGE 3: Documentation, all plots that meet the EUDR criteria will be registered in the EUDR Plot Register. This register will contain detailed information, including the plot identification code, owner's name, age of the crop, plot size and estimated cocoa production. In addition, for each plot that complies with the regulations, a technical report will be generated, which will include a georeferenced map of the plot's polygon.

SEVENTH: In accordance with STEP 4: Management of Deforestation Free Agricultural Production, cocoa beans from EUDR compliant plots will be handled in a differentiated manner to ensure full traceability from the plot of origin to the point of export. This guarantees that each lot of cocoa can be traced back to its origin, thus meeting the standards required by European regulations.