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Transformation™ BREWING TRANSFORMATION™ Sustainability at Keurig Green Mountain KEURIG GREEN MOUNTAIN SUSTAINABILITY REPORT FISCAL YEAR 2016 OVERVIEW Executive Letters Our Company Governance and Management Our Strategy Our Targets Overview Value Chain Materiality Analysis Fiscal 2016 Data Summary Collaboration and Engagement Awards and Recognition About This Report ENVIRONMENTAL RESPONSIBILITY STRONG SUPPLY CHAINS CLEAN WATER OUR PEOPLE AND COMMUNITIES 2 KEURIG GREEN MOUNTAIN SUSTAINABILITY REPORT FISCAL YEAR 2016 OVERVIEW Executive Letters Integration. Commitment. Our Company Governance and Accountability. Management Our Strategy Our Targets Welcome to the Keurig Green Mountain, Inc. (Keurig) Value Chain fiscal 2016 sustainability report. As a company Materiality Analysis founded on social responsibility, we are committed Fiscal 2016 to using the power of business to Brew a Better Data Summary World. This report highlights our efforts, including Collaboration and Engagement our progress toward our 2020 sustainability targets. Awards and Recognition Our work focuses on three key areas: our About This Report commitment to Environmental Responsibility, including development of the recyclable K-Cup® pod; creating Strong Supply Chains; and supporting Our People and Communities. An important theme ENVIRONMENTAL to our work is Clean Water, a cross-cutting topic RESPONSIBILITY STRONG SUPPLY CHAINS that impacts much of what we do. CLEAN WATER OUR PEOPLE AND COMMUNITIES 3 KEURIG GREEN MOUNTAIN SUSTAINABILITY REPORT FISCAL YEAR 2016 OVERVIEW Chief Executive Officer Letter Executive Letters Our Company I’m so pleased to be able to introduce launch of our recyclable K-Cup® pod this sustainability report — my first is an excellent example of how our Governance and Management since I joined Keurig Green Mountain team is taking our business to the last year. next level. We are ensuring that the Our Strategy new eco-friendly pods are not only So many things have impressed me recyclable but also recycled in local Our Targets about this company during the last community programs by working year — most of all, the people of Value Chain with communities and recyclers Keurig. Not a week goes by that I’m across North America. Materiality Analysis not asked about our sustainability Fiscal 2016 progress by one of our team Our progress on the sustainability Data Summary members. Our people are engaged front will enable growth for in our efforts, and they have great the Company, opening doors of Collaboration and ideas on how we can take our opportunity for our employees, our Engagement business and products to the next customers, and our business as a OUR VALUES Awards and Recognition level. We’ve heard time and again whole. I am even more excited about that our sustainability programs and Keurig’s potential than I was when We partner for mutual success. About This Report company values are primary reasons I started on this journey, and I am Our boundaryless approach to why people choose to work here. confident that the work we are collaboration creates benefits for all. doing today is setting the stage for As this report shows, there’s much to We innovate with passion. With courage a bright future. be proud of here at Keurig, from our and curiosity, we are shaping the future efforts to reduce the environmental by redefining the consumer experience. Sincerely, ENVIRONMENTAL footprint of our operations and Robert (Bob) J. Gamgort RESPONSIBILITY products to our partnerships that We play to win. Our team sets ambitious Chief Executive Officer STRONG SUPPLY CHAINS improve the livelihoods of coffee goals and meets each challenge with June 5, 2017 CLEAN WATER farmers around the world. The unified purpose and character. OUR PEOPLE AND We Brew a Better World. We use the COMMUNITIES power of business to make the world a better place. 4 KEURIG GREEN MOUNTAIN SUSTAINABILITY REPORT FISCAL YEAR 2016 OVERVIEW Chief Sustainability Officer Letter Executive Letters Our Company Welcome to our fiscal 2016 farmer and community health. We sustainability report! I’m proud and also know reducing the resources Governance and Management excited to share our progress with that we and our consumers use you … and there is so much to share! every day yields environmental Our Strategy sustainability for our business. I’m As a company founded on social thrilled to share that we have met Our Targets responsibility, we continue to or are very near to meeting three pioneer sustainable coffee Value Chain out of our four environmental practices and social impact impact targets! Materiality Analysis partnerships in coffee-growing Fiscal 2016 regions around the world. The work In 2016, we met our 2020 target Data Summary that began over 20 years ago by to reduce life-cycle greenhouse gas Green Mountain Coffee Roasters emissions of brewed beverages Collaboration and has resulted in better livelihoods for by 25%. We achieved this through Engagement coffee farmers and their families. innovative efficiency measures that Awards and Recognition And as the work continues and also accommodated growth of grows via partnerships and on-the- the Company. In addition, we have About This Report ground projects, we are steadily nearly reached two other targets: approaching our goal of 1 million balancing 100% of the water used farmer livelihoods improved. Today, in brewing our beverages, and 100% more than 417,000 people in our waste diversion from landfill for our coffee supply chain have been operations across North America. engaged in projects to improve We expect we will hit our 2020 ENVIRONMENTAL RESPONSIBILITY farming techniques, diversify targets for water and waste ahead incomes, and adopt climate- and of schedule, as we already have STRONG SUPPLY CHAINS water-smart practices. for energy use and emissions. Our CLEAN WATER teams are now eager to set new We know environmental OUR PEOPLE AND and aggressive targets to move the COMMUNITIES sustainability on farms yields needle even further. high quality coffee and improved 5 KEURIG GREEN MOUNTAIN SUSTAINABILITY REPORT FISCAL YEAR 2016 Our fourth environmental impact and captured in ways that ensure encouraging recycling behavior OVERVIEW target is arguably our most impactful — a second life for valuable plastic changes and boosting recycling ® Executive Letters 100% conversion of all K-Cup pods material. The realities of recycling are rates. We have joined forces with to a recyclable format. In 2016, we complex and depend on equipment, others in our industry, and are Our Company announced that the first recyclable economics, household behavior, investing more than $1 million a year ® Governance and K-Cup pods were available for and a variety of other factors. Our through organizations such as The Management purchase — a significant milestone on tests at recycling facilities, using an Closed Loop Fund and The Recycling our journey. Today, we are excited to award-winning protocol of our own Partnership, to affect change at a Our Strategy announce that we will transition all design, have provided valuable insight system level and to ensure that all Our Targets K-Cup® pods in Canada to the recyclable to recyclers and to the industry in plastics have a useful second life as format by the end of 2018. And we general into how K-Cup® pods and new, durable products. Value Chain other plastic items travel through remain on track to convert all pods in I invite you to learn more about our Materiality Analysis recovery equipment. North America by the end of 2020. Company, our products, and the Fiscal 2016 Ensuring that the material we use When considering that in the United opportunity to make smart choices Data Summary for our pods is recyclable is just States today, only 34% of people in our everyday consumption. This recycle on a regular basis, and report shows how we’re delivering on Collaboration and one factor in the equation. Our Engagement commitment to our consumers and only 14% of plastics get collected our commitments to you — one cup stakeholders is that our K-Cup® pods for recycling, there is significant at a time. Awards and Recognition will be recyclable and recycled. We are room for improvement in plastics About This Report pursuing recyclability the right way by recycling to keep valuable resources Monique Oxender working in advance of the transition in their highest use possible. For Chief Sustainability Officer with recyclers across North America this reason, our work extends past June 5, 2017 to ensure that the pods can be sorted designing a recyclable product to ENVIRONMENTAL RESPONSIBILITY STRONG SUPPLY CHAINS CLEAN WATER OUR PEOPLE AND COMMUNITIES 6 KEURIG GREEN MOUNTAIN SUSTAINABILITY REPORT FISCAL YEAR 2016 Our Company Approximately OVERVIEW Keurig is a leader in specialty coffee and innovative single serve brewing Executive Letters systems. Committed to delivering exceptional coffee for more than 35 years, * Our Company today our Keurig® brewers and single serve hot beverages are in more than 20 5,700 million homes and offices throughout North America. In under a minute, Keurig® Governance and Employees worldwide brewers consistently and conveniently deliver a fresh-brewed, great-tasting Management cup with just the push of a button. As a testament to that quality, more than Our Strategy 50 leading global coffee, tea, and cocoa brands have partnered with Keurig to offer consumers vast personal choice from 500+ varieties. Keurig is a private Our Targets business owned by an investment group led by JAB Holding Co. Value Chain 75+ Materiality Analysis
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