 Good morning, good afternoon, good evening everybody, welcome. Thank you for joining us today here at Davos Agenda 2021. I am Ryan Patel and honored to lead this session on designing connected and sustainable value chains. Someone who sits on different boards across different industries help scale globally and is a frequent guest on the news, especially in breaking down the future trends to each of us. At the heart of all this is the ever important value chains. COVID-19 is accelerating the change of global value delivery models with unprecedented consequences for manufacturing and value chains. For the new data, powered ecosystems, the latest approaches of circularity in manufacturing. How can we redesign value chains for greater productivity and innovation? So as I mentioned today's theme, we're going to focus on what is the need, opportunities, challenges, and potential disruptions. I am very excited and honored to introduce these four great leaders who are going to be joining us today. Carlos Brito, CEO, Anaiso Bush-Inbev, Pamela Koch-Hamilton, Executive Director, International Trade Center, Jim Fitterling, Chairman and CEO of Dow, David MacLennan, Chairman and CEO of Cargill USA. How's everyone doing? Great, thanks for having us. I'm telling the audience right now you are in for a treat. We are going to try to make it moving and try to get a lot of questions in just as a reminder. The first 30 minutes is open to all the public and those that have joined via top link, the panel will be followed by a more interactive discussion with all of us then. I'll give a notice at the end again. So let me jump into it. Carlos, I'm going to come to you first. If and how did 2020 illustrate the need for more connected, resilient, and sustainable value chains? Well 2020 was an impressive year for sure. I mean everybody had to to review its operations and try to figure out how to operate and all the restrictions. We're a global company operating all continents. We sell our products in more than 100 countries and we're very deeply connected to our communities. We're a global company but our business is very local. 90 plus percent of what we sell is totally connected to communities and therefore for us for the communities it's critical that the communities thrive and they continue to develop because that's where we we have our business and our colleagues are part of the community. So we're also very connected to sustainability and I think this year last year 2020 proved that we have no other planet. This is the planet we have. There's no planet B. And if we don't use resources in a circular way, in an efficient way, there'll be no resources left or there'll be no planet left for our kids. So I think this is something that became very obvious. We are very, our sustainability is very connected to packaging, to farming, to water, and to energy. Those are all things we use to produce beer and therefore things that can have an impact given our footprint around the world. I think what became clear this year to your question is that collaboration is key. The problems in the world face are very big and they require a multidisciplinary approach and collaboration is key to their approach. So this time people are talking about the green recovery. We're all very glad to hear that because we have to rebuild. If we have to rebuild, let's rebuild it better in a more equitable, more fair way, cleaner, using resources in a more rational way. And I think the biggest barrier to this, the big promoter of this collaboration, the biggest barrier is the siloed approach. For example, in our business, most of the water we use is in the farming, is in our farmers, our suppliers. So if you only look at the four walls within our breweries, we're not tackling 80 percent of the water consumption that happens in our business. So that's why for years we've been collaborating with our farmers and also suppliers in general because again it requires a village to really get to that circular economy. Well you mentioned Carlos about the community piece and I think that's really important when you're re-looking at yourself as well and all the different pillars. Pamela, you know I know the center focus and the work you do is around SMEs too, small, medium enterprises. Can you kind of talk too about how you are seeing, how that was illustrated in 2020? Not sure if we lost Pamela. I know we had some a little bit difficult issues but I will integrate her back when she comes back in online. But Jim, I'll come to you next. You know, I'd love to ask you kind of what initiatives you've been taking to connect. Do I hear Pamela back? He has some, sorry I'm having some internet issues. I mean the Caribbean, sorry, sometimes that happens. Yes, sorry, you were asking me something? Yeah, no worries of course. It's a technology. You know, in the SME community, the small business, medium enterprises, I know you do a lot of work in there. Can you kind of share a little bit what you've seen for how 2020 illustrated for that community and how, you know, how the connectivity, as Carlos mentioned, of collaboration was important? I think one of the main things when we talk about sustainable value chains and making value chain work is the fact that, as Carlos mentioned, collaboration is critical simply because we have to do unprecedented things in an unprecedented time. And this time is significantly unprecedented for all of us. So what is it that we need to do? I think we need to look first of all at how to make the value chain system more reliable, something that we require special partners like ITC have done. So the first thing you need, Pamela, I think we might have lost her again. Sorry to the audience. I know we're working through this. This is live. And so we're fortunate to have each of these great leaders with us. So we're going to keep moving forward and we'll integrate her right back when she comes in. Jim, I want to come to you. I know you as a company last year, you guys had faced on to COVID and these initiatives. Can you talk about the strengthening collaboration in the value chains? Kind of what are the key success factors for you and the initiatives that you've highlighted? Yeah, like Carlos mentioned, we have a big global footprint and we have supply chains that extend around the world and they're very interconnected to the food and especially packaging areas, health and hygiene areas and also the industrial markets. They all saw some challenges last year. I was concerned when we went into COVID and lockdowns and less travel that it would be difficult for us to implement some of the projects that we have around the world. A great example would be like our projects in the Alliance to End Plastic Waste, where we're working on waste reduction as well as circular solutions on a local basis. But I was pleasantly surprised that the use of digital tools like this allowed our people to actually be more productive. They met more frequently. I would say the depth of those communications was better and we made a lot of progress towards getting our head around metrics and targets and challenges that we need to be able to drive this forward. And I believe that metrics is a key part of it as being talked about in a big way today because our system, our capitalist system is driven on profitability and everything is driven towards profitability, low cost growth, market value cap, ad. But sometimes that's not what we're trying to solve for. If we're trying to solve for less CO2 emission or less plastic waste, that takes different metrics and you're trying to change consumer behavior. These are big challenges and a profit metric alone isn't going to help do that. So I think we made tremendous progress on our own commitments but helping the whole value chain understand what needs to change in order to make sure that we are not only profitable but we have a better environment to live in in the future. I think Jim, you said perfectly a trend that people should be paying attention that metrics and benchmarks in the future will be changing as you mentioned of the way how we hold all of us accountable and how you do business going forward. David, love to, you mentioned something about the food system being resilience, resiliency. Walk me through what that meant to you when I saw an interview that you did that you mentioned that and maybe talk a little bit more about how the redesign of this new model or what did we learn from last year that you think that we're going to keep going forward with? Yeah, thanks, Ryan and happy Tuesday to everybody on the call. I think that if I look back on 2020 and especially the early months of COVID as it spread from China to the rest of the world, the word that you mentioned, Ryan, is most appropriate I think is resilience of the food supply chains and it's resilient because the people are resilient and certainly in the early days of lockdowns and things closing down across the world, we were concerned, are we going to be able to get food to where it's needed, to where consumers want to have it? And certainly you saw spot shortages and retailers and especially in the western world where there are certain things that you couldn't get. But I think if I think about 2020, it's number one is the food system is resilient. It worked and with a few exceptions where we had to shut down some of our plants and some stores were experiencing spot shortages but by and large food was able to get where it was needed despite in some cases pressure to open up facilities by local governments, by national governments to make sure the food supply chain that people were continuing to be fed. Secondly, I think it draws attention and both Pamela and Carlos have mentioned about partnerships and that we have this connected supply chain. Now, you know one entity can feed the world by itself. It starts with the farmers, the most important part, one of the most important parts of the supply chain goes all the way through to the retailers of food service to where people consume their food. And so I think it brought attention amongst the world's consumers the complexity and all the interrelated parts of the supply chain that need to work on a day-to-day basis. I think people may have taken for granted where does my food come from? How is it produced? Who is in the supply chain? And I think that has been one of the positives. And then finally sustainability can't wait. There was no pause on sustainability initiatives on what we are doing in terms of regenerative agriculture in terms of water supply, water conservation, soil resilience. And so I think that's the third point, Ryan, which is sustainability continues to be the presenting issue for the food and egg supply chain this year in the years to come. And certainly it did not pause because of COVID. Well, thanks, Dave. And you know, I think that's important because I think you mentioned sustainability didn't pause. So then how do we move forward? We got to put some data behind it, right? The ecosystem as a whole really needs to understand of how are we actually moving forward because of what happened in 2020. And Pam, I think you're back on. I'd love to ask you how ecosystems really powered by data maximize the productivity and innovation across value networks. How have you seen that play? To the thing, it's not allowing me to unmute. The guy's asking me a question now, but hello. Sorry. Hey, we can hear you. We can hear you now. I'm sorry. This is just a nightmare. Sorry. Pamela, it's okay. Don't worry. It's perfectly fine. Love to hear your insights on this. Okay. So can you repeat the question while I'm on it? No problem at all. I was asking, David was mentioning about how sustainability hasn't moved. I mean, he's going to move forward. And I'm saying, and I think everyone here agrees that data is going to be behind it to ensure that we are moving forward even further. And I wanted to ask you how you've seen kind of, you know, how have the ecosystems as powered by data to maximize productivity and innovation for the future across value networks? How are they going to play in? All right. Well, the first thing is that we're going to look at how do you, you know, make sure the data is siloed. And I think that's part of the problem. You know, we have issues from the Minister of Finance to the pineapple farmer in Sri Lanka. And how do we get them all to be able to utilize the data in a way that is important and that facilitates global value chains? One of the things that we have done at ITC is we've earned the trust of over 100 standard setting bodies. And we've created one global repository of 250 standards displayed in one site, which is the sustainability map. And we also have worked with technical working groups for VSS and sustainable standards. And part of the data issue is also we need platforms. And that means you're going to build trust, harmonizing standards, making those standards work for all companies, big and small. And that's a trust building exercise. And those platforms cannot be just businesses or governments or industry experts, you know, talking in silos. It has to be a coordinated approach across all three constituencies and then transparency is built on the ground. So for example, one of the things we actually did with the World Economic Forum in 2019 was to explore how the sustainability map could provide a transparency and traceability platform capable of visualizing blockchain-based supply chain traceability data from multiple companies. The pilot was part of the initiative of WEF's platform for shaping the future of advanced manufacturing and production and created in collaboration with Everledger and the Lensing Group. And it turned out to be work very well, you know, managing data privacy, mapping businesses involved in relevant value chains, etc. I think what's also important as part of this data initiative is having the kind of inclusive toolbox that erases the divide between developed and developing countries. And one of the big things that we've seen over the last year, particularly in relation to the value chains is the issue of ensuring that businesses, especially MSMEs understand that they have to not just make a case, a business case for traceability, circularity, and harmonization, but see them also as stepping stones to global value chains. And I think that's going to be very important. So I just wanted to make those points. So those, Pamela, that's great. And Carlos, I see you shaking your head and I'm coming to you. I'm coming to you because I started hearing Pamela speak about the macro pieces and going to micro. I want to ask you, and feel free to chime in on Pamela's comments too, but like, you know, when you mentioned your four pillars, the pillars you mentioned at the beginning of this talk, you know, I think a reduced reuse, recycle, re-manufacturing, this is not easy. And obviously it seems like that's something that you all are trying to do more of. Can you share kind of the struggles too, the success and struggles, because it's not easy, right? Well, in terms of reuse, re-manufacturing, recycle, in our business, more than 50% of what we sell is a returnable packaging. So packaging that will travel 20 times, 30 times, glass bottles or kegs, right, that are reusable. On top of that, we're also taking one, single use plastic out of our supply chain. So for example, in six packs of cans that you have those rings of up top, we're taking those all off and using cardboard solutions, you know, that are recyclable as opposed to single use plastic that will end up in beaches and oceans and all that. And we're also using blockchain, as Pamela said, to trace our bottles. So in Colombia, for example, every day, one million bottles go through the street, okay? We try to make sure that most of those bottles that are not returnable will find ways back in terms of recyclability. In order to do that, you have to work with the people that collect those bottles, the co-ops, that will get the bottles from these people and put together in a truck load. And we're using blockchain to give them also a financial identity as a bottle picker. And in terms of our circular ventures, what we're doing as well is with our byproducts from Brewing Beer, you have multi-barley at the end that has very rich in protein and fiber. So we're now, we just announced two weeks ago, a venture that we've been investing for five years that now has scale to turn that back into the human food chain. Before that, we're selling that to feedstock. But now, of course, we're able to get those proteins separated and put it to better use for best use, back into the food chain. So those are just some examples of things we're doing to try to have our business being one of circular in that we use something, there's a byproduct, that byproduct finds its way again with the value added back into the chain as opposed to go to landfill. No, great. No, thanks. I know Dave and Jim, you guys have similar views. Feel free to jump in. I think the one thing I would add to Carlos' comment is when you're looking at an economy and a use of materials and designing for circularity, you also have to think about the overarching goal of climate and CO2. And energy is a big driving force for that. So one of the reasons plastics are very popular and is because they have the lowest CO2 footprint and they're the cheapest product to make in the world. They're also one of the cheapest to recycle. So you can make plastic or paper or glass or aluminum or steel and it can all go to a landfill. What's the lowest life cycle assessment of all of those materials? And I think that isn't necessarily, circularity alone isn't necessarily the only measure of that. You've got to look at the CO2 footprint and there's really not as much good life cycle assessment scientifically out there as we need to drive this forward. And so we have to think about all these things together and that's one of the things that we're trying to do. And for example, plastics waste doesn't have to end up in the environment. But our consumer behavior over decades has been a linear economy. We use something once. It doesn't matter if it's plastic or anything else. We use it once and we throw it away. How do you drive the behavior to not throw it away but to recycle it? How do you drive the system to have an investable value in it so that that product comes back? Is it a deposit on a bottle or a can? We've seen that when you do that, you get 95% return rates and you can have a pretty good source feedstock for creating that circular loop. So there are a lot of things that have to come together to make it happen. And one producer alone can't make it happen. It takes a lot of collaboration along that whole value chain. Ryan, I'll pick up on something that Carlos and Pamela were talking about relative to blockchain data and technology. And that is transparency in the food supply chains. And as I mentioned a few minutes ago, consumers I think are much more aware of the connectedness of the supply chains around the world, starting with the farmer, to the manufacturer, to the transportation companies, and ultimately to the places where people consume their food. They want to know where is it coming from? How was it produced? Who was in the supply chain? What companies were involved? And were the products being sourced on deforestation free or sustainably produced lands? And so one of the things we've been doing in the last couple of years in our cocoa supply chain in Western Africa is implementing not only blockchain technology, but also data monitoring and very specific data around where is the cocoa coming from? Using technology to have surveys to understand how big are the families that are working on these farms? Are there farms where there may be a higher likelihood of child labor, which is completely unacceptable and we will not do business with anyone that is practicing child labor? It allows us to map where deforestation may have occurred and also cease to in business with any small farms or large farms for that matter, where deforestation is occurring. So I think one of the things that has occurred since the advent of COVID, but was already occurring is transparency and the use of data to trace supply chains back to the farm so that people can have a much better and clearer idea of how is it produced, where did it come from and how did it get to my table? Well, each of you already beat me to the punch. I was going to ask each of you to give me one actual item. Each of you gave me what you were each action will moving forward, which I love. And part of what I've heard and also maybe the struggle is education, right? I mean, I don't know if someone wants to take a crack at what I'm going to ask is, oh, Carlos, this is already before I even asked it. I think, Jim, you mentioned like, hey, this is, we got, it can't be just from one person, all of us. Well, we've been talking about getting everyone collaborating together, but how do we educate the individual if we're going to change the behavior? How are we going to educate the leaders to educate the group and the cultures around that? Carlos, you want to... Yeah, I go back to what Pamela said about small and medium businesses. Six million, we have six million retailers that was service around the world on a weekly basis. The vast majority of them are family businesses, small businesses, mostly run by women. And sometimes single head of the family. And we have a big role in educating them in terms of to avoid the digital divide. Because this pandemic exposed all the gaps they have to compete in today's world in terms of digital, not being banked, not having a bank account and all that. And we're very busy because they're 90 plus percent of our customer base. And we're very busy in the past few years trying to provide them solutions so they can have apps to connect with customers so they can have a business even in lockdown periods that they have a more efficient way to connect with us and a way to manage the inventory, working capital and so on. We're also giving them banking services with our digital wallet. Because sometimes these people work day and night so as to see at the end 20 percent of their bottom line go to banking fees, 25 percent go to banking fees. We can reduce that by 90 percent by providing the digital wallet and payment services so they can avoid those fees in many countries. So we're trying to provide them ways so they can be successful because they import not only for their families because that's the only thing where they get their money from but also for communities because they give credit to a lot of people that live around them in the community. And that's the only source of credit for a lot of these people to buy during the month until they get to a paycheck day. Yeah, Carlos, I want to add before I get to the last question, Pamela, I want to get your insight real quick if you can on that, if you have a point of view because I know you're seeing it dealing directly with the community and what you're talking to them about. Yeah, I really wanted to chip in on this so thank you for giving me the floor after, Carlos. The whole issue of accessibility is critical, particularly for small and medium-sized enterprises. And one of the things we've seen which is really a major concern for me is over the last year during COVID, what we've seen is that there's been a lack of connectivity for a lot of digital platforms have become even more important. E-commerce has become critical. And so it's important that they have the ability to access the connections that enable them to do business. One of the things that we've been working in through our sustainable agriculture initiative is the collaboration on the farm sustainability assessment. And that was developed by over 80 SAI members. And so the suppliers and farmers and external stakeholders all worked together to try to create a unique platform which is used by leading food and drink companies to source sustainable produced agricultural materials but also to work with them to create effective and efficient supply chains. And I think the whole issue of digital platforms and digital connectivity is going to become even more critical as we move into the next phase of what's happening with COVID. Smaller countries have had significant issues with digital penetration. And if I could make one ask of the huge companies out there, how can we help countries developing countries, especially in some of your large suppliers like in Africa, increase the digital penetration level? Because it's not just about apps and mobile connectivity. It's also about connectivity at the household level. Since so many women are involved in agricultural production, since so many women are dependent on it to feed their families, the issue of digital penetration is a significant problem. It's only 18% in all of Africa and 11% for least developed countries. How do we address that issue? And how do we increase the ability to engage in the digital space? So, that's fine. To Pamela's point, I'm sorry, Dave, go ahead. Yeah, go ahead, Tim. I'll wait. Oh, I think to Pamela's point, do you have a very developed economy in the United States and post COVID with the ability, the need to try to have to deliver education across the country? It's exposed a lot of gaps from a social standpoint and households being able to access. So, this problem is universal. I think it's a problem that we have all through the world and more pronounced in developing economies. And so, the ability to educate and reach out, have broadband accessibility for everyone, have everyone be able to have a computer at home so that they can make a living has been a big move forward. And you'll see it's part of an infrastructure discussion on a bill that needs to go through in the United States here. So, it's a common platform for everyone globally. And I'll pick up there. And it's so true. And to Pamela's point, and I'll go back to the example of cocoa farmers in West Africa, all our payments are done digitally through their phones. And the vast majority of the payments are done to the women of the household. But it's a very important point that's talked about the resilience of the ag and food supply chain system. But it starts with the farmers and those communities. And we've got to make sure that those communities are resilient. And we have seen during COVID times that the vulnerability in developing countries and in agricultural communities is much more pronounced than it was pre-COVID. And so, I think whether it's our company or anybody on this call, we've got to continue to invest in farmer training, investing in the technology, and that's in the support of those communities. Otherwise, the food supply chain and the ag and food supply chain system will break down at the very beginning if those communities and the farmers don't have the appropriate support. Well, I feel like this conversation can continue to keep going. I know we're running out of time. We've got a minute left. And all you just started about inclusivity is going to make a difference, right? Being inclusive is going to make an impact. And so, real quick, I'd like to play this game. It's called Ryan's Lightning Round. I guess this is Davo style. In one word, describe the theme, what does connected, resilient, and sustainable value mean to you? Carlos, you're first. Collaboration, no plan B. Pamela. Inclusion. Jim. Power. Uplift date. And Dave. Farmers. Well, I want to thank you all here on the panel. I thank you for your candor insight. Thank you to the audience. Like, I really do appreciate you all. And thank you all.