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Our Commitment to Sustainability About Our Cover 2 010 Our Commitment to Sustainability About Our Cover Reflecting our commitment to the environment, the community and our employees 7,000 lbs of cheese and thousands of cans of food donated to local food banks and hunger-relief organizations 70% of the water used in our California facility 45,000 Hours 17 Students is recycled water spent on received college scholarships from employee training Hilmar Cheese Company 15,000 students participated in our educational programs The information presented reflects data collected for 2010 .....2 Welcome to Hilmar Cheese Company Making cheese and whey products that contribute nutrition, enjoyment and value to people’s lives. Owned by eleven local Jersey dairy farming families, Hilmar Cheese Company, Inc. produces cheese and whey products that nourish more than 20 million people worldwide each day. From the shredded cheese in tacos to the whey protein in infant formula, Hilmar Cheese Company and our whey division, Hilmar Ingredients, deliver the promise of dairy to consumers around the world. .....3 Contents The Company Letter from CEO 5 Our History 6 Our Mission 7 Goals and Progress 8 Environmental Stewardship 10 Employees 12 Economic Value 14 Community Engagement 16 This report is based on the methodology outlined by the Global Reporting Initiative (GRI), a nonprofit organization that develops and publishes guidelines for reporting on sustainability performance. More information on the GRI can be found at www.globalreporting.org. .....4 A Letter from Our CEO Our Commitment to Sustainability Thank you for taking this opportunity to learn about Hilmar Cheese Company through our first corporate sustainability report. It has been produced to recognize and report on our goals, successes and areas for improvement as we convert our premium milk supply into innovative, top-quality dairy products for customers worldwide. We express these values internally Still privately held by local dairy farming as The Hilmar Way – it’s our way families, we operate our original processing of looking at everyone and plant in Hilmar, California, and have a second everything we touch; our company new manufacturing site in Dalhart, Texas. culture, our community and our resources. Our company is based on the fundamental principles of corporate responsibility and sustainability. We express these values internally sharing the benefits of dairy. This report is as The Hilmar Way – it’s our way of looking designed to share openly with those we engage at everyone and everything we touch; our with – our customers, our business partners, company culture, our community and our policy makers, consumers and our community resources. – about our sustainability efforts. From our Visitor Center to our water reclamation, we take While committed to a thriving and growing seriously our responsibility to the community company, it is important that we manage our and environment in which we live and raise business in a manner that balances economic, our families. social and environmental sustainability. We value your confidence in our company and know it is We work at all times to protect our natural our responsibility to maintain that trust. resources, our employees and our future generations. It is our obligation, and it is the At Hilmar Cheese Company, sustainability is a right thing to do. For Hilmar Cheese Company, daily commitment to caring for our land, air and it is The Hilmar Way. water resources – while never forgetting the importance of putting affordable, nutritious dairy foods on the tables of millions of consumers and John Jeter .....5 Our Family-owned Company Our History In 1984, 12 Central California dairy families, (pictured at right) seeking to maximize the value of their Jersey cows’ premium milk, created Hilmar Cheese Company, Inc. They invested heavily in research, the latest technology and employee excellence – a practice that continues to guide the privately held company today and remains a core part of The Hilmar Way. Committed to continuous improvement and innovation, the company has grown to be a leading producer of American-style cheese and whey products. We enjoy an international reputation for superior quality and consistency of our products and unparalleled, personalized service. Today that reputation continues as the second and third generations of family owners (pictured at top) share responsibility. Success, for Hilmar Cheese Company, means fostering long-term, mutually beneficial relationships between company owners, employees, milk producers, customers and the local community. .....6 Sustainability, Part of Our Legacy Our Mission Commitment to sustainability is a core element of the mission statement that Hilmar Cheese Company follows: Through leadership-driven, high-performance teamwork, Hilmar Cheese Company and Hilmar Ingredients develop and convert in a sustainable manner our premium milk supply into innovative, top-quality dairy products for customers worldwide who further add value in their markets. Scope of this Report This presentation of Hilmar Cheese Company’s More about our sustainable practices can be sustainability efforts incorporates guidelines found at www.hilmarcheese.com. from the Global Reporting Initiative (GRI) along with principles important to our customers and our industry. The scope includes calendar years 2009 and 2010 and reflects the efforts at our California headquarters and manufacturing facility. Next year’s report will expand to include activities at our second facility in Dalhart, Texas. .....7 Goals and Progress Category Focus Goals Progress Future Plans Environmental Recycled Use 100% of wastewater 96% of the amount of waste- Progress to 100% Stewardship Water for discharged to land for water discharged to land Irrigation crop irrigation was for crop irrigation, an increase of 31% from 2009 Well Water Minimize the amount The amount of well water Continue to reduce water use Use Reduction of well water used for used per thousand pounds production of production decreased by 2% from 2009 Renewable Use 100% of the A new boiler was installed Evaluate alternative energy Energy internally available that has the capability of using solutions such as solar, and biogas (methane) 100% of the current internally increase amount of internally as a fuel source generated biogas (methane) generated biogas (methane) Energy Continually reduce An in-depth assessment of Implement feasible changes Efficiency energy use facility-wide energy efficiency such as expanded use of lighting project is near energy efficient lighting completion Air Emissions Decrease the amount The amount of GHG Evaluate renewable energy of direct greenhouse gas emissions per thousand options to decrease GHG (GHG) emissions per pounds of product was thousand pounds of product stable from 2009 Solid Waste Recycle and reuse to We improved programs Continuous improvement to Recycling create zero waste from to reuse cardboard, shipping meet goal of zero waste with material stream containers, plastics, jugs, supplier partnerships foam and more Package Minimize product We disassemble, sterilize, Work with suppliers Minimization packaging while ship flat and reuse the to continually improve maintaining quality wooden and plastic crates packaging efficiency and material integrity from the 640 lb. cheese block packaging Supplier Develop and maintain New supplier qualification Utilize collected information Responsibility relationships with suppliers guidelines adopted and during review process; clarify who have similar posted on our website and expand awareness of our sustainability goals sustainability expectations Transportation Reduce shipping miles We worked with suppliers Develop additional to improve proximity and partnerships for shipping shipping logistics .....8 Goals and Progress CategoryCategory FocusFocus GoalsGoals and Timing ProgressProgress FutureFuture Plans Employees Safety Decrease incidents of Our workplace injuries Continue to implement workplace injuries decreased by 14% from Behavior Based Safety 2009 and other safety-related improvement programs Training Implement The Hilmar The Hilmar Way training Improve training to meet Way training has been incorporated into new and emerging needs all new staff training CategoryCategory FocusFocus GoalsGoals and Timing ProgressProgress FutureFuture Plans Economic Jobs and Stimulate local economy In an area of high Continue business success Local Support unemployment, our to increase workforce workforce increased to more than 790 CategoryCategory FocusFocus GoalsGoals and Timing ProgressProgress FutureFuture Plans Engagement Community Identify and contribute to We partnered with Maintain core emphases Philanthropy projects with significant University of California at on youth and education, impact Davis to help build a new food resources, health care milk processing lab and the arts .....9 Environmental Stewardship Recycled water to Milk Cheese irrigate crops Whey Hilmar Cheese Company Recycled water Water Recycling for non-food uses: • Boilers • Cooling Tower Whey Protein Water reclamation Lactose Recycled water to wash: facility • Facilities • Equipment Environmental Stewardship Dairy Farm Stewardship Our water recycling starts with milk from the Hilmar Cheese Company partners with cow. Milk is made up of 13% nutrients which more than 230 local dairy farms dedicated are used to make our cheese, whey proteins to providing us with the highest quality milk. and lactose; and 87% water which is used in These farms participate in the California Dairy our recycling
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