STRATEGIC REPORT

Sustainability report

ABOUT THIS REPORT Sustainability is at the heart of how we do business. Our sustainability strategy addresses what’s important, what we should be aiming to achieve and how we report on our progress. We are actively engaging in dialogue with internal and external stakeholders, including NGOs, in order to ensure our strategy is delivering what’s needed, and our reporting is clear and transparent. Our overarching Quality Naturally strategy and its eight supporting pillars have remained unchanged. We have created a new format this year, that we hope is more accessible and effectively demonstrates progress through practical examples of our work. In this report we cover all aspects of our social and environmental strategy and commitments. Alongside these we highlight the material issues, our progress, the challenges we face, and the way in which assessing related risks and opportunities are evolving.

IN THIS SECTION

ABOUT THIS REPORT 28 FACTS AND FIGURES 35 CEO introduction 2020 29 Meet our Sustainability Committee TCFD DISCLOSURE 54 Chair – Rebecca Shelley 30 GOVERNANCE 56 INTRODUCTION TO OUR STRATEGY 32 UNGC and SDG alignment 57 Our materiality matrix 33 How we work through the value chain 34 ADDITIONAL INFORMATION 58

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CEO INTRODUCTION 2020 In 2020 we demonstrated significant In what has been a truly challenging progress towards our targets year for our business, with Covid-19 – As we enter 2021 we have committed to set a science based target through restricting our ability for physical the Science Based Targets initiative meetings, I am delighted with the for our factories and supply chains and progress and direction of our Quality to signing the Business Ambition for Naturally CSR strategy, delivering 1.5°C pledge. This means that we are solid improvements and innovation committed to delivering a plan towards net zero carbon neutrality before 2050 in pivotal areas. and joining the UNFCCC Race to Zero https://racetozero.unfccc.int/ Driven by the colleagues in our business who are passionate about ensuring we – We have made huge progress on are the first choice partner for sustainable our journey to sustainable and circular proteins through innovation and excellence packaging. Having overachieved our in our products, supply chains and factories. target for recycled content, which is now an average of 70% across all plastic Continuing to foster this culture of packaging. Furthermore 98% of our beef sustainability and ethics is vital, and it mince is now packed in recyclable mono reflects some of the core values of our plastic trays, while 100% of our paper strategic compass, including providing and board is sustainably sourced. an inclusive working environment where – During 2020 in collaboration with leaders everyone feels valued, respected and and colleagues across our business we able to fulfil their potential. developed our Inclusion and Diversity Globally the demands and actions required strategy. As part of that strategy I am by society to address issues such as climate pleased to announce that in 2021 we change are increasing. We are committed will become a strategic sponsor of Meat to rising to these challenges and delivering Business Women the global professional nutritious food from sustainable and ethical networking movement for progressive supply chains. We are continuing to focus women working in the meat sector. attention on the level of ambition and – We have joined the United Nations speed in which we need to act, as can Global Compact as a full Participant, be seen from this report. which means we are committed to The frameworks for evaluating and supporting the delivery of the UN targeting material risks and opportunities Sustainable Development Goals in the are woven into the foundations of decade leading to their culmination. our business, so that we can operate – We have maintained our excellent Tier dynamically and take advantage of our 2 rating in the Business Benchmark ability to deliver more effectively. in Animal Welfare, demonstrating that animal welfare is integral to our Our expertise is increasingly being business strategy. In 2021 we have recognised and utilised both within industry – All the Soy Protein used in our salmon collaborative forums and to help our feed comes from traders that have committed to setting customers deliver their broad category committed to sourcing from farms sustainability ambitions and net zero targets. Science Based Targets that have stopped all forms of Climate change is undoubtedly the defining deforestation, with robust third party for our factories and for issue of our time. The business benefits verification processes. of driving science based climate action are our supply chains.” clear, and we will be well-placed to thrive PHILIP HEFFER as the global economy undergoes a just CHIEF EXECUTIVE OFFICER transition to a net-zero future. We have the innovation, tools and expertise to make this happen and realise that our ambition and actions need to be bold. That is why I am pleased to announce that we are stepping up and committing to set a long term target to reach science based net-zero emissions by 2050 at the latest and to set interim science based targets across all relevant scopes and in line with the criteria and recommendations of the Science Based Targets initiative.

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SETTING THE CONTEXT The major sustainability theme of 2021 As a consequence of Covid-19, there is a is likely to be climate action, with the strong government desire to ‘build back During 2020 we established a 26th Conference of the Parties to the UN better’ and build a ‘green recovery’. At the Sustainability Committee, which I am Convention on Climate (“COP26”) taking same time there is demand for greater pleased to Chair. This demonstrates place in Glasgow. This is why we are proud diversity and flexibility at all levels of the critical importance to the to be doing our part by setting Science business and in public life. Some of our Based Targets which we plan to have changed work patterns will endure as we Board of our Quality Naturally agreed with SBTI during this year. have seen the effectiveness of remote strategy, which is at the core of our working and connecting via video, but We are preparing for the recently- partnerships. I am pleased to share we look forward to resuming the face to announced requirements for reporting face interaction that brings us together some of our insight into the key issues against the Task Force on Climate in creative collaboration. and opportunities for Hilton in 2021. related Financial Disclosures (“TCFD”) framework. This year we have made The Covid-19 crisis has enhanced the our first statement, which shows how ‘valuing’ of food, and there is emerging we are approaching both the risks and evidence that food waste has reduced, opportunities for a multi protein global because more people are planning their food company. purchases, cooking from scratch and using leftovers. We continue to focus on Our work extends beyond climate to food waste in our own operations and are embrace the circular economy (reduction, particularly proud to be listed as part of the re-use, recycling of material resources) Champions 12.3 10x20x30 commitment. as a route to carbon reduction, as well This groundbreaking initiative brings as reducing waste and the demand for together 10 of the world’s largest food new plastic production. retailers and providers, each engaging at Another key theme will be nature, least 20 suppliers to halve food loss and often characterised as biodiversity. waste by 2030. Several influential reports in 2020 We are seeing an increasing demand for highlighted the extent of damage to food that is healthy for us and healthy for nature from human activities, including the planet. This report shows how we are the prospect of those being accelerated playing our part in making that happen. Rebecca Shelley by climate change – this at the same time Sustainability Committee Chair many people were turning to their natural environments as relief from lockdown. The next Conference of the Parties of the UN Convention on Biodiversity takes place in China in October 2021, where a ‘Paris style agreement’ deal for nature is sought. We are seeing an Food has become an increasing focus for consumers, at the same time as their increasing demand awareness is being raised that nature is under threat. These are big issues for for food that is healthy agriculture with many of the countries in which we operate taking the opportunity to for us and healthy for re-invent the way they support agriculture, such as the EU Farm to Fork strategy, and the planet.” the new Environmental Land Management REBECCA SHELLEY Scheme (“ELMS”) in the UK. SUSTAINABILITY COMMITTEE CHAIR

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This diagram demonstrates how we have developed our strategy to deliver specific outcomes that are relevant to our business and to our stakeholders. We have worked with expert partners to map the issues that are most relevant to our stakeholders. We used these to create a prioritised list of objectives in each of the eight pillars of our strategy. The outcomes of this strategy will help us deliver tangible progress against the Sustainable Development Goals.

THE ROOTS OF OUR CSR STRATEGY AND WHAT WE WILL DELIVER

STAKEHOLDERS

RETAIL PARTNERS OUR SUPPLIERS TRADE ORGANISATIONS (abattoirs, farmers, feed producers, fishers, ingredients, packaging, equipment, INVESTORS energy, transport services) TRADE UNIONS AND WORKERS’ COUNCILS

OUR PEOPLE FARMING ASSOCIATIONS NATIONAL/FEDERAL/LOCAL GOVERNMENT

NEIGHBOURS/LOCAL COMMUNITIES ACADEMIA/SCIENTISTS REGULATORS

ENVIRONMENT AND SOCIAL NGOs CERTIFICATION SCHEMES CONSUMERS

MATERIALITY MATRIX

OUTCOMES

FIRST CHOICE EMPLOYER/ INDUSTRY LEADING ANIMAL WELFARE SUSTAINABLE FARMING AND FISHING RESPONSIBLE RECRUITMENT

MINIMAL MATERIAL USAGE AND EFFECTIVE CHOICE OF HEALTHY, AFFORDABLE TRANSPARENT REPORTING TO OUR CUSTOMERS CLOSED LOOP RECYCLING AND SUSTAINABLE PRODUCTS

LOW CARBON AND RESOURCE HIGH ETHICAL STANDARDS SUPPORTING LOCAL COMMUNITIES EFFICIENT OPERATIONS IN OUR SUPPLY CHAIN

POSITIVE IMPACTS

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INTRODUCTION TO OUR STRATEGY Our strategy leverages the influence of our scale, and builds on the many Our Quality Naturally strategy uses examples of leadership in Sustainability eight strategic pillars to deliver our within the Group. We understand that responsible business vision. no single company can tackle these challenges alone. We recognise our responsibility to reduce the footprint of our products throughout their supply chains and within our factories.

INNOVATORS IN SUSTAINABLE PROTEIN

Innovating to produce quality food which is ethical, healthy and sustainable

EIGHT PILLARS OF OUR STRATEGY

OUR PEOPLE SUSTAINABLE PACKAGING RESOURCEFUL Our people are proud to be part PROTEINS We are using innovation FACTORIES of Hilton, recognising our contribution We are leading collaborative and our scale to drive We are on a path to net zero to community, environment action to address the key transformational development carbon and constantly reducing and how they are treated in environmental challenges, of sustainable packaging our environmental impact by the workplace. We embrace shaping and guiding and move towards a circular eliminating waste and driving local creativity and grow and agendas and driving uptake economy across our resource efficiency. develop our people to be the of innovation at scale. value chain. best they can.

TRANSPARENCY ANIMAL HEALTH ETHICAL SUPPLY CHAINS CONSUMER HEALTH Our industry leading transparency AND WELFARE We are leading collaborative INNOVATION solutions and open reporting We are driving uptake of action to improve the By combining innovation demonstrate our responsible innovation and developing standards lives of workers across and responsible sourcing, business progress and strengthens that advance welfare and reduce our supply chains. we ensure our consumers trust in our industry. the need for antibiotics throughout can make balanced choices our global supply chains. that are healthy for them and for the planet.

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OUR MATERIALITY MATRIX Key: We use this materiality matrix to decide which key initiatives to invest OUR PEOPLE TRANSPARENCY PACKAGING RESOURCEFUL in and how to prioritise each of them. FACTORIES

These material topics are considered SUSTAINABLE ANIMAL HEALTH ETHICAL SUPPLY CONSUMER HEALTH within our wider risk management PROTEINS AND WELFARE CHAINS INNOVATION process. It was the first step in developing our Quality Naturally strategy, as it ensures we focus on the right priorities.

GROUP LEVEL MATERIALITY MATRIX

PACKAGING PRODUCT SAFETY End to end innovation & INTEGRITY ANIMAL HEALTH Plastic reduction, design AND WELFARE for circularity CLIMATE CHANGE MITIGATION AND INNOVATION HUMAN RIGHTS BIODIVERSITY IN HEALTHY AND IN SUPPLY CHAINS THROUGH SUSTAINABLE Major SUSTAINABLE EATING AGRICULTURE/ WITH ALTERNATIVE WILD CAUGHT FISH/ PROTEIN OPTIONS FOOD WASTE AND LOSS AQUACULTURE

ANTIMICROBIAL RESISTANCE

TRANSPARENT HEALTH & SAFETY FAIR PRICE TO FARMERS SUPPLY CHAINS AND FISHERMEN

OUR FACTORIES ENERGY AND WATER WASTE MANAGEMENT/ MANAGEMENT RECYCLING Significant RESPONSIBLE RECRUITMENT

WELLBEING, EQUALITY, IMPORTANCE TO EXTERNAL STAKEHOLDERS TO IMPORTANCE EXTERNAL DIVERSITY & INCLUSION ENVIRONMENTAL NUISANCE FOR REPORTING NEIGHBOURS CAPABILITY OF OUR PEOPLE

Moderate TRANSPORT

EMPLOYER OF CHOICE

OUR COMMUNITIES

Moderate Significant Major

IMPACT ON COMPANY

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HOW WE WORK THROUGH Our focus is to deliver our customer THE VALUE CHAIN priorities by collaborating with our supply chains. We do not own farms, fishing Hilton engages and convenes the whole vessels or abattoirs, which gives us the value chain to incentivise investment freedom to work with the leaders in in step change improvements, which innovation and sustainability. The diagram are economically sustainable at scale. shows how we guide and influence at each stage of the chain.

THE VALUE CHAIN

FEED FARM/VESSEL ABATTOIR HILTON FOOD RETAIL CONSUMER GROUP CUSTOMER

AUDIT CONTROL

GUIDE GUIDE

INFLUENCE INFLUENCE

SUPPLY CHAIN TRANSPARENCY AND SOLID SUSTAINABILITY CREDENTIALS

INCENTIVISING CATALYSE UPTAKE OF INNOVATION EFFICIENCY AND INNOVATION AND AND BEST PRACTICE INNOVATION IN STRATEGIC PARTNERSHIPS TO DRIVE DEMAND FOR PRODUCTS AND MEANINGFUL CHANGE SUSTAINABLE FEED MEASURING AND REPORTING OUTCOMES PACKAGING CONSUMER INSIGHT DEVELOPING AND PRODUCT INNOVATION OUR PEOPLE BUILDING CONSUMER TRUST EXPERT SUPPORT

INDUSTRY COLLABORATIVE GROUPS

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FACTS AND FIGURES 30% 5,718tn 1.5% REDUCTION IN FOOD WASTE FOOD SAVED FROM FOOD WASTE AS A PROPORTION IN OUR UK SITES SINCE 2018 GOING TO WASTE OF TOTAL FOOD PRODUCED 70% 89% 100% AVERAGE RECYCLED CONTENT OF OUR MEAT TRAYS ARE MADE WE HAVE ACHIEVED 100% SUSTAINABLY OF OUR PLASTIC PACKAGING FROM 100% RECYCLED PET AND SOURCED PAPER AND BOARD (FROM ARE FULLY RECYCLABLE FSC OR PEFC SUSTAINABLY CERTIFIED FORESTS) ACROSS ALL OF OUR RETAIL PACKAGING GLOBALLY 130tn 1,000tn 18m OF PLASTIC REMOVED BY REDUCING WE HAVE PLANS TO REDUCE OUR WE HAVE REMOVED 18 MILLION PIECES THE WEIGHT OF OUR RETAIL PACKAGING PLASTIC TRAY WEIGHT BY A MINIMUM OF NON-RECYCLABLE PACKAGING IN OUR SEAFOOD BUSINESS IN THE OF 1,000 TONNES ACROSS THE GLOBE FROM OUR PRODUCTS IN THE LAST LAST 12 MONTHS OVER THE NEXT 12 MONTHS 12 MONTHS 300% 47% 2,503,000 GROWTH IN VEGETABLE BASED PROTEIN OF THE ELECTRICITY THAT WE USE SELF-GENERATED RENEWABLE RETAIL SALES SINCE SEPTEMBER 2019 HAS ZERO EMISSIONS ELECTRICITY (KWH) UP 33% FROM 2019

TONNES CO2e SCOPE 2 EMISSIONS TONNES CO2e SCOPE 2 EMISSIONS TONNES CO2e PER TONNE (LOCATION BASED) (MARKET BASED) OF PRODUCT 57,675 47,103 0.15

TONNES CO2e AS A RATIO OF GROUP REVENUE, AS A RATIO OF GROUP REVENUE, OUR SCOPE 1 EMISSIONS OUR EMISSIONS REDUCED BY WATER EFFICIENCY IMPROVED BY 10,639 30% 16% 98% 100% 93% OF OUR DIRECT SUPPLY WILD CAUGHT OF OUR AQUACULTURE SUPPLY IS THIRD OF GLOBAL SUPPLIERS FISH IS CERTIFIED TO THE MSC PARTY CERTIFIED FOR RESPONSIBLE GFSI CERTIFIED SEAFOOD (E.G. ASC, GLOBALGAP AND BAP)

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Why it matters Highlights Creating an environment with a focus on – Building on our strategic leadership safety and where people feel supported to development programmes we launched perform at their best, leads to an organisation a future senior leaders programme, these with higher staff retention, lower absence, development initiatives will be expanded OUR PEOPLE reduced accident rates and ensures people to emerging leaders in 2021. want to join us. Together with implementing – We created a three year Inclusion and Our people are at the heart of best ethical practices such as ETI base code Diversity strategy informed by employee our success. Hilton is an inclusive and ILO principles, it gives our workers a safe focus groups and in consultation with and valued place of work. organisation built on respect, with our leaders. – This year we successfully ran a virtual equal opportunities for skills and Health and safety leadership conference and Company- career development. The safety We are dedicated to putting Health, Safety wide town halls. Ensuring that colleagues and wellbeing of our people is and wellbeing at the heart of what we do are fully engaged and understand their through good leadership, safe behaviour and our first priority. contribution in delivering and supporting our continuous improvement of our Safety purpose, ambition, principles and values. Framework. This consists of our Group Health – Our focus has been on protecting our and Safety policy, local vision statements, people through Covid-19. We were able global standards and local procedures. to keep all of our people informed and Protecting all of our people (employees, Commitments and objectives: engaged through our MyHFG app, which contractors and visitors) against hazards proved critical to keeping them aware of 1. Continued development of an through the application of risk management safety measures and to be able to listen inclusive organisation built on to prevent injury, harm and illness. respect, with equal opportunities and respond to any concerns. for skills and career development Current targets to improve Health and Safety – Engagement survey results improved performance include year on year reductions by two points, demonstrating we are 2. Track improvements in engagement in First Aid Incidents (“FAIs”), Lost Time making progress to continuously improve survey measuring employees’ Incidents (“LTIs”) and number of lost days. our colleague experience. overall connectivity with Hilton We also look for year on year improvement – Became a sponsor of Meat Business and level of pride for the business on Hazard and Near Miss Reporting and the Women network to help mentor and appropriate actions taken to close out these 3. Implement a global safety develop our people. reports. Our annual audit results and the framework – using best practice – Launched our new Global Health from each region feedback received from our colleagues through culture and engagement surveys and Safety framework and KPIs. ensure our continual improvement. – We continued our Stronger Together programme in the UK to ensure our Inclusively attracting and developing managers and team leaders are trained the best people to look for signs of modern slavery. Our strategy starts by following fair recruitment – Examples of our community support practices, builds and sustains colleague included our people personally donating engagement and ensures that Hilton continues hundreds of chocolate eggs to the NHS, to be an attractive employer. Inclusively a hospice and care homes in Grimsby developing colleagues to their full potential, and we transformed 2 families lives by and attracting new diverse talent, is the core donating much need furniture, equipment, of our succession and capability future clothes and food in Poland. leadership strategy. – In Poland we established a free confidential psychological counselling support programme for our people with the message that our goal is to get you back into balance.

Our people are proud to be part of Hilton, recognising our contribution to community, environment and how they are treated in the workplace. We embrace The global professional networking local creativity and grow and develop our movement for progressive women people to be the best they can. working across the meat industry.

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OUR CAPABILITY AND SUCCESSION JOURNEY

LEADERSHIP PROGRAMME LEADERSHIP CAPABILITY PARTICIPANTS PROGRAMMES REVIEWS 29 3 240

2020

New Performance 2019 Development Review launched strengthening Approach further focus on development 2018 rolled out to exploring leadership levels Approach simplified Approach adjusted to widen to emerging 2017 post pilot and rolled out Exploring Leadership leadership level Programme (“ELP”) New approach First Strategic launched piloted & succession Accelerated Development plan developed for Programme (“SADP”) senior leadership launched

UN SDG Alignment

OUR HEALTH & SAFETY JOURNEY

THINK SAFE

CONSOLIDATE STANDARDISE EVOLVE

Dedicated to ACT SAFE STAY SAFE 1 8 41 5 VISION, POLICY AND GLOBAL GLOBAL KEY SHARED GLOBAL FRAMEWORK STANDARDS REQUIREMENTS KPIs

UN SDG Alignment

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Why it matters Highlights All food supply chains need to be on – In 2020 we were elected as vice chair track towards net zero to meet national of the European Roundtable for Beef climate commitments and consumers are Sustainability and we are leading the facing calls to eat less meat and fish on Environmental work streams in the SUSTAINABLE PROTEINS environmental grounds. There is a huge UK Cattle Sustainability Platform. opportunity to gain trust from consumers – We are founder members of the Soy We are engaging in our global by giving them sustainable choices and Transparency Coalition that aims to help supply chains to address the the facts about the true footprint of their supply chain companies and investors food. We are excited by the opportunity environmental sustainability overcome transparency challenges in for substantial sustainable growth in the soy sector to deliver a sustainable challenges that will shape the aquaculture and for farming livestock production system. future of food. These include within planetary boundaries. – We are working with our suppliers and reducing the climate impacts Our engagement in collaboration wider collaboration to achieve shared of livestock farming while during 2020 has increased despite the Science Based Targets with a focus to improving soil health, recovering cancellation of almost all physical meetings address the carbon footprint of livestock production and utilise renewable energy. fish stocks and eliminating from mid March onwards. We took the opportunity to develop a global dialogue – We have achieved that 98% of our direct waste. Our opportunity is to via the rapidly improving virtual meeting supply wild caught fish is certified to the build consumers trust in food platforms. We were able to build new MSC. We fund and actively participate that is healthy for them and alliances and attend more meetings with in Project UK Fishery Improvement healthy for the planet. improved participation compared with Programmes to bring the remainder previous years. We attended and spoke at to certification. national and global conferences and were – We have helped convene the elected into additional governance roles aquaculture value chain to promote the that help us to deliver our objectives. uptake of algal oils and novel proteins Commitments and objectives: We are optimistic for the sustainable such as insect meal. We are pleased 1. We are working to achieve verified future of all the key proteins that we that our main salmon suppliers are now zero net deforestation for all our produce and have focused our efforts using these in their mainstream feeds raw materials by 2030, and sooner where we can make the greatest impact. or in large scale trials. where possible – We are actively participating in the governance of the GlobalGAP 2. We have committed to setting aquaculture and Marin Trust standards, Science Based Targets including ensuring the sustainability of the farmed for our key supply chains, and fish we purchase and the fisheries used we have aligned to the European in their feeds. Round Table for Beef Sustainability objectives of an intensity reduction of 15% in emissions of cattle by 2025 3. All of our direct supply wild caught fish will be certified to the MSC standard or otherwise verified as sustainable by 2030 4. We are working to drive a substantial uptake of novel proteins and oils by 2025 to reduce the dependence on wild capture fish in aquaculture feed, to enable sustainable growth

We are leading collaborative action to address the key environmental challenges, shaping and guiding agendas and driving uptake of innovation at scale.

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SUSTAINABLE SOY FOR LIVESTOCK FEED

Ensuring the soy used in animal feed After months of collective dialogue, is not contributing to deforestation that recognised the challenges they is of concern for all our livestock faced, we were very proud to see all species. This needs to be tackled of the producers agree to a 2020 cut through collaboration within sectors off date and a robust monitoring and and between them. verification process. Hilton are part of a group of salmon This achievement is a first step to the farmers, feed companies, and market objective of biome wide commitments facing processors and retailers that had to ending deforestation. We are working a shared vision of ensuring that the within the group of signatories to the Brazilian producers we buy our soy from Statement of Support (“SoS”) for the would be the first traders to have 100% Cerrado Manifesto – the SoS supports deforestation and conversion free supply the objectives defined in the Cerrado chains. The Soy Protein Concentrate Manifesto and signatories “commit used in our salmon feed has been to working with local and international UN SDG Alignment certified as sustainable for some years stakeholders to halt deforestation and but that was only part of the market native vegetation loss in the Cerrado”. for the four producers, who supply the global salmon industry.

HIGH QUALITY BEEF FROM DAIRY COWS IN THE NETHERLANDS

Dairy cows are specially bred for milk The cattle are supplied by a group The project was set up by Hilton Foods production while the premium beef of sustainable dairy farmers who Holland in partnership with Albert Heijn, market in the Netherlands is met by are working to high animal welfare A-ware and local farmers. The next imported meat from Irish or South standards. They are also focused on phase is building platforms in the American cattle that are bred and reducing the carbon footprint and industry to allow this system to grow reared on beef farms. looking after the biodiversity around in an economically sustainable way the farms. By joining in this partnership for farmers. This project was aimed at ‘finishing’ with the beef farmers they get a better the ex dairy cattle on a dedicated beef This is one example of innovation and price for their cattle. farm with a diet that results in great sustainable thinking that Hilton, together eating quality. By giving the cows this It’s a win-win as there is an overall with our retail partners, are leading highly-nutritious diet, that is mainly reduction in the carbon footprint of to reduce the life cycle impacts of locally sourced, the meat quality 18-43% compared to dedicated beef our products. is significantly improved. cattle, while appealing to a demand for locally produced sustainable food.

REDUCTION IN CARBON FOOTPRINT 18–43%

UN SDG Alignment

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Why it matters – We are making rapid progress to We need our packaging to protect reduce the weight of our packaging. food safety and quality, which also We took out 130 tonnes of plastic prevents food wastage throughout the a year by reducing the weight of value chain. To address climate change our retail packaging in our Seafood and the impacts of plastic waste on the business last year and plan to save PACKAGING environment we need to transition to a another 1,000 tonnes of plastic annually across the globe in 2021. Our aim is to achieve circular circular low carbon economy. This requires – To achieve a fully circular economy recycling and minimising the globally aligned action to provide the recycling infrastructure and incentives for our packaging we are working with footprint of packaging in its needed to achieve this. We are having the Carbon Trust as the first company production and use. We achieve a positive impact on the journey to net to evaluate our packaging against this through innovation, making zero carbon economy by using paper their new circularity standard and it easier for the consumer to and board from sustainably managed to address any remaining challenges in partnership with our suppliers. recycle and by increasing the forests, and increasing the recycled content in all our packaging. – We are working in partnership recycled content in our packaging. with our meat and fish suppliers We also apply the same principle Highlights on innovative solutions to address to the packaging used for our raw – We have made a huge step towards the challenges in our supply chain materials to ensure we are using our recycled content and recyclability packaging. This includes trials to the most sustainable packaging targets, 89% of our meat trays are made replace polystyrene salmon boxes with circular recyclable cardboard and across our value chain. from 100% recycled PET and are fully recyclable, so 98% of our beef mince reusable trays. We are also evaluating is now packed in recyclable plastic trays. chemical recycling of primal bags to achieve our 100% recyclability goal. – We have achieved our target to only use 100% sustainably sourced – We launched ‘Jazz’ packaging in the UK, recycling coloured bottles into Commitments and objectives: paper and board (from FSC or PEFC 70 million recyclable meat trays. 1. All our retail packaging will be fully sustainably certified forests) across – We proved that a fully circular reusable, recyclable or compostable all of our retail packaging globally. economy for meat packaging is by end of 2022 – On average over 70% of our plastic packaging is made from possible in a collaborative project with 2. All paper and board used will be recycled content. Færch Plast, Coop, Hilton Denmark, 100% sustainable by end of 2020 in Copenhagen. We sold 50,000 – The remaining barriers to making packs made from recycling meat 3. Achieve a minimum of 50% average all of our trays recyclable have been trays collected in partnership with recycled content across all plastic identified and are being overcome. the city recycling centre. packaging by end of 2022 We removed 18 million pieces of 4. Reduce the weight of our plastic non-recyclable packaging from our packaging whilst ensuring it remains products in 2020, and 93% of our black fit for purpose and coloured trays are detectable so can be effectively recycled. 5. Give focus to the packaging that our raw materials are delivered in to ensure our suppliers are aligned with our sustainability objectives

We are using innovation and our scale to drive transformational development of sustainable packaging and move towards a circular economy across our value chain.

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CARBON TRUST FOOTPRINT MODELLING

We have partnered with the Carbon Finally we consider the recycled content, UN SDG Alignment Trust to create a model for measuring recyclability and actual recycling rates in the carbon footprint of our existing the countries where we sell the products. packaging and to help us make the correct decisions on new alternatives. We use accurate measurements of the energy used in the manufacturing and packing of the products and other factors such as the transport type and distances from the manufacturers to our sites.

INNOVATING TO INCREASE RECYCLABILITY AND REDUCE PLASTIC USE

As part of our targets to increase the amount of our packaging that can be recycled, while minimising our use of hard to recycle plastics, we have worked with our strategic packaging suppliers to launch a new format of paper based trays. Because the body of the tray is made from paperboard, these trays use 75% less plastic. The film liner can then be easily separated so that the tray can be recycled. The trays themselves are sourced from renewable PEFC/FSC managed forests. Across our Australian, Swedish and Belgian market this equates to a reduction of 256 tonnes of plastic annually.

REDUCTION IN PLASTIC USING PAPERSEAL TRAYS -75%

WORKING TOWARDS COMMON GOALS

We have joined the European the ANZPAC Plastics Pact and and Australia/New Zealand Plastics alongside the European Plastics Pacts to ensure our global targets Pact this will form part of the Ellen are standardised and meeting MacArthur Foundation’s Global common societal goals. In 2020, PlasticsPact Network, of which the Australian Packaging Covenant we are already an active participants Organisation (“APCO”) developed of in the UK.

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Why it matters – Committed to setting Science Based As an industry we now have more Targets to a well below 2-degree tools than ever to drive our emissions scenario for our own operations. down and minimise our impact. This is – We have restructured some of our why our customers and their consumers processes and operations through are increasing their expectations of colleague led initiatives in order to RESOURCEFUL FACTORIES efficient supply chains. We are rapidly reduce emissions and waste while We are proud to be world leaders approaching irreversible global warming maximising efficiency. in processing innovation and our tipping points and we must act now. – Waste and rain water in our Portuguese HFG operate in some challenging markets plant is treated at our water treatment factories are the most efficient in in terms of carbon emissions from station where we recover 20m³ a day their sectors. We’re focusing on energy sources and we are committed to be reused within our refrigeration engaging everyone in our business to finding solutions to minimise these condensers. This negates the need to to continually find ways to reduce emissions which will be key to meeting use fresh water to cool the condensers. our environmental impact. our goals. We are also fully aware of the – In our seafood site we collect solid carbon emissions savings potential by material from our wastewater streams reducing food waste, that’s why this is to send for anaerobic digestion in order one of our key priorities in our business. to create energy. We have clear water reduction targets – Across our global sites we are actively Commitments and objectives: and are continuing to build our risk reviewing refrigerant gas selections and assessment and mitigation plans for 1. Achieve Science Based Targets moving towards natural sources which physical water impacts at all of our reduce our carbon emissions. for our Scope 1 and 2 emissions sites with sustainability as a foundation by 2030 – Our live energy monitoring systems, of our investments, upgrades and which we have been installing across 2. Improve usage efficiency by 10% construction of all sites. our sites are successfully delivering in both energy and water – by 2025 day-to-day savings. (vs 2018 baseline) Highlights – We are installing electric vehicle 3. Through Champions 12.3 cut our – Towards the end of 2020 we launched charging points across our sites, own food loss and waste in half – our ‘War on Waste’ which is an internal in the UK we will have 16 points by 2030 (vs 2019 baseline) operations efficiency programme to installed by the end of the year. ensure we meet our water, food and – As an example of our commitment packaging waste reduction targets. to protecting local water sources, we This is driving employee engagement have installed interceptors to filter out and ensuring consistent messaging oils and prevent these chemicals from across our sites. entering the local water systems. – Publicly reporting our total food – HFI were the first HFG site to achieve waste as a percentage of total food the ISO 50001: 2018 Standard and produced in line with our Champions for the full year of 2020 delivered a 12.3 commitment. 13% reduction in kwh/tn of output – In the UK alone we reduced food versus 2019. going to waste by 20% last year.

We are on a path to net zero carbon and constantly reducing our environmental impact by eliminating waste and driving resource efficiency.

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HILTON FOODS IRELAND

We are constantly striving to In order to make this achievable we minimise our environmental impact installed secondary water pumps and and make our factories more efficient. associated piping infrastructure to the Natural gas usage is a key target area water satellites in production. for these reductions. This has the potential to reduce gas One key project objective was to usage for wash down procedures use cold water where possible for by 40%. wash down purposes. Using hot water where necessary and cold water for other processes. This will allow for a reduction in gas usage and an increase in heat recovered from the refrigeration system.

PACKAGING WASTE REDUCTIONS IN OUR POLISH FACTORY

We have identified internal packaging waste generation as a key improvement area in our factories. The process that we are adopting is first to target and measure the waste volume and drivers. In our Polish fresh food and meat site we identified that we had a packaging waste loss of around 6% in 2019. Split into five main categories Trays, Labels, Cartons, Film and Foil. In 2020 we heavily targeted this and have seen massive improvements, reducing this waste volume by around 50%. In order to achieve this we set up a specific waste action group with four key action areas for operational improvements whilst also seeking packaging changes and innovations that would reduce the probability of waste. In 2021 we have a programme of trials and changes planned to reduce our packaging waste even further.

REDUCED PACKAGING WASTE VOLUME UN SDG Alignment -50%

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Why it matters Highlights The ever growing demand to be – Received a ‘B’ climate disclosure score transparent is a key driver for change from from CDP along with our first scored top to bottom. Our core business objective forestry disclosure. is to be a trusted partner of the retailers we – BBFAW tier 2 status maintained TRANSPARENCY supply, and we can achieve this through demonstrating that animal welfare transparency. There is the potential is integral to business strategy. Hilton is committed to working for reputational damage to us and our – ​Building the tools with in an ethical, open and honest customers should authenticity challenges Foods Connected to give be made. Consumers lose trust in the manner to produce products of immediate transparent traceability positive claims if they cannot be verified. and collect and analyse the data. ​ the highest food safety and quality. Reputation damage and fines can also – Using our data collection technology be linked to deforestation or IUU fishing We partner with the best suppliers to measure and report on the so it is vital we demonstrate we do not that share this commitment to status of our supply chains and contribute to these actions. Authenticity of quality, safety, animal welfare positive impacts. action is now being scrutinised more than – Aligning to interoperable traceability and sustainability. ever by the finance sector therefore we protocols such as the Global need to be able effectively demonstrate Dialogue on Seafood Traceability.​ Ensuring the sustainability of our progress to strengthen our industry. food requires transparency across – Building fast moving projects with the value chain to prevent negative suppliers and retailers aligned to their specific objectives. environmental and social impacts. – Incorporate learnings from our TCFD New technologies and tracing analysis to future proof our business methods will inform consumers and ensure our day-to-day decisions about the origin and methods are guided by sustainability and ethics. of production, and how human rights are ensured.

Commitments and objectives: 1. Establish full chain visibility and data collection through innovative digital technology – by 2025 (includes fully interoperable seafood traceability systems from boat and farm through each step of the supply chains) 2. Use TCFD framework to further understand and report climate risks and opportunities

​Our industry leading transparency solutions and open reporting demonstrate our responsible

business progress and strengthen For more information on CDP responses see trust in our industry. www.hiltonfoodgroupplc.com/responsibility

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A DIGITALLY CONNECTED FOOD SUPPLY CHAIN TO DELIVER TRANSPARENCY, SUSTAINABILITY & EFFICIENCY

Hilton are consortia members in a The project will utilise innovation in This project allows farmers, processors, collaborative research and development digitisation and automation, integrating retailers and quick service restaurants project to demonstrate how state-of- with Internet of Things (IoT) devices to to accurately map supply chains and the-art technology can be implemented capture information at a farm level to trace products alongside key value- in a commercial environment to present support traceability and provide data on added metrics such as animal welfare, a transparent supply chain which welfare and product quality. It will also sustainability and antibiotic usage. is accurate and accessible in real- enable farmers, food manufacturers, This will enable faster, evidence- time. We will work with our software retailers, and quick service restaurants, based decisions promoting proactive partner Foods Connected to develop (“QSR”), to integrate internal systems issue management. an interoperable digital platform that with a fully interoperable platform. The enhanced transparency will integrates with existing systems Data Flow Mapping will be used to enable us to better communicate to to capture traceability information show how Key Data Elements (“KDE’s”) consumers the true value behind their from farm to fork. It will remove the are captured at Critical Tracking Events food, maintaining and enhancing trust requirement for double handling of data (“CTE’s”) in the supply chain. We will and loyalty. and manual intervention. This technology identify who captures the data, at what will reduce cost, waste and ensure points in the chain and the methods product integrity, using cryptography used. A new system architecture will to establish a tamperproof ledger of be designed to automate and link data. By embedding this connected traceability events together whilst mechanism for data capture the potential protecting data security and ensuring UN SDG Alignment for food fraud is significantly reduced. a tamperproof platform. Proof of concept for rapid testing techniques e.g. antibiotic residues will be explored with the view of future utilisation within the food industry for real time surveillance.

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Sustainability report continued

Food Safety and Quality Hilton Food Group is committed to working in an ethical, open and honest manner to produce products of the highest food safety and quality. This is underpinned by our Group Quality Policy which outlines our commitment across the Group to: – Food safety, product quality, legality and integrity; – The achievement of customer satisfaction by adherence to product specifications and service requirements; – Adequate resources in the pursuit of ‘Continuous Improvement’ for our products, processes and our people; and – A programme to develop a food safety culture. Our commitment to food safety and quality combined with our first-class manufacturing facilities and We maintain strong links with academia Hilton’s approach is to only use ingredients our customer focus makes us the first and technological advances, working and additives where required to increase choice for our retail partners. alongside Campden BRI, Danish Meat food safety and ensure product stability Research Institute and Teagasc Ireland. and quality. We comply with our Factory standards and quality systems We are also active members of a number customers’ lists of prohibited additives, of trade associations such as British Meat and actively reformulate where we We are proud of our modern, specialised Processors Association, Food and Drink can to remove artificial ingredients and processing and packing facilities which Federation and Seafish. unnecessary additives. use state-of-the-art production equipment, including a high degree of automation We are also supporting the reformulation and the use of robotic equipment which Product Standards and Responsibility of products to reduce the total salt and minimises handling. This combined with our The quality of the raw materials used in fat in food, and increase fibre in line with high standards of hygiene and temperature our products contributes significantly to customer health targets and following controls ensure we meet our customers’ the achievement of consistent finished FSA/EFSA guidance. Where possible expectations for quality throughout the product quality. We work closely with our we eliminate known allergens and clearly product’s shelf life. suppliers to set clear specifications for the label them when present. products they supply. Monitoring incoming Our well trained production operatives raw material quality combined with close All of our sites have in house testing are responsible for the quality of our retail control of the processes we follow in our facilities for raw material and finished partners’ products and they are supported manufacturing operations ensures we are products including organoleptic and by highly qualified and experienced quality able to consistently meet the best in class physical assessment. We operate assurance and technical teams at each specifications our retail partners set for laboratory facilities in a number of our site. We have developed our own HFG our products. sites which carry out microbiological and Factory Standards to ensure both our chemical testing. These are operated new and existing facilities are set up and Our product innovation capability is industry by fully trained personnel and have operate to the highest standards. In addition leading with local and regional centres of appropriate local accreditation. excellence for each of the food categories each of our sites undergo independent We have a comprehensive product third party accreditation to a Global Food we produce. We have specialist teams at each of the sites and we share expertise in recall policy and mechanism, that is Safety Initiative (“GFSI”) recognised verified by simulated tests, and is certification scheme. product and process development across the Group. Our creative team includes integrated into our wider business Our retail customers make frequent many qualified chefs who utilise the market crisis management systems. visits to our sites, which in some cases insight teams and consumer focus groups includes unannounced audits and visits to ensure our new product launches have as part of their own surveillance. This level a high degree of success. of attention is a valuable part of our partnership with our retail customers and gives consumers confidence that Hilton can consistently meet their expectations. All of our sites received the highest levels of third party and customer audit results in 2020.

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Supply Chain Integrity, Environmental We exercise due diligence in establishing Our Seafood Standard includes additional Impact Assessment and Traceability the legal origin of seafood products and requirements on fishery management, marine ingredients used in the feed for our and environmental impact mitigation We partner with the best suppliers that farmed fish, and base our systems on the in fisheries and aquaculture. share our commitment to quality, food BSI PAS 1550 standard (for eliminating safety, animal welfare and sustainability. Hilton actively review and engage in the Illegal Unreported and Unregulated (“IUU”) We are committed to ensuring the integrity sustainable development of our agriculture fisheries) which we helped to develop. and traceability of the raw materials we supply chains. We work alongside our This includes audits of the feed producers use in our products, this includes the meat, suppliers to address the footprint of our and for the highest risk supply chains fish, ingredients and packaging. We have supply chains including factories abattoirs and the fishmeal plants that supply them. developed our own Supplier Standards farms, and we are building decarbonisation Hilton Seafood have signed to support for each raw material group which clearly and water stewardship plans for each the Environmental Justice Foundation state the standards we expect our sector with our key suppliers. This includes Charter for Transparency. suppliers to operate to. addressing the GHG footprint of animal feed We hold Group Marine Stewardship and other environmental risk areas. Audit frequency is determined by risk Council certification for all of our assessment which looks at a combination We engage in the leadership of collaborative manufacturing facilities that use fish, with of raw material and supply chain threat and action to address the footprint of soy and annual compliance audits by the certification vulnerability, horizon scanning and supplier cattle farming with the Soy Transparency body. Hilton Seafood are founding, funding history. We have full traceability back to the Coalition, European Round Table in Beef and active participants in multiple Fishery farms and fishing vessels that supply the Sustainability and UK Cattle Sustainability Improvement Projects to bring the remainder slaughter operations and primary processing Platform. Our engagement is described of our supply to certification or to develop factories in our supply chains. in more detail in the Sustainable Supply new sources of supply. Hilton Seafood Chain pillar. Audits are carried out by our own team of disclose all of our source species, fisheries qualified auditors or second party auditors and fish farming areas on the Ocean Hilton additionally review welfare and against the Hilton Food Group Supplier Disclosure Program website. environmental risks by using external data standards. In addition, the majority of sources (for example lice counts, benthic All farms, livestock facilities and slaughter our suppliers are certified against GFSI scores and mortality in farmed salmon). facilities for farm animals, and >99% benchmarked standards by independent For our aquaculture supply we are working of farmed fish supplying Hilton Food audit bodies. For new suppliers our policy with low stocking density farms where Group UK, Ireland and Sweden, and the is to take from only GFSI certified suppliers. the environmental outputs are lower than majority supplying to the other European The current GFSI certification status of standard with additional welfare benefits. and Australian markets are certified to our supply chains is 93%. These audit independent farm assurance schemes. Hilton continually develops and refines processes have been in place for more Where required assurance may be to higher testing methods, data collection and than three fiscal years. welfare schemes or organic standards. reporting. Samples collected from raw All Seafood is environmentally risk material deliveries are assessed for We have developed Livestock farming and assessed in accordance with the Sustainable compliance to microbiological standards and abattoir welfare standards in partnership Seafood Coalition Codes which we helped agreed quality specifications. Results are with our retail customers. 100% of our develop as the first founding member. used to assess the performance of suppliers livestock slaughter facilities are audited by a Currently over 98% of our wild capture and achieve continuous improvement. welfare qualified auditor, either to the Hilton volume is from certified fisheries and over We conduct a wide range of authenticity Group Supplier Standard by our own team 99% of our farmed fish and shell fish are testing to evaluate new supply chains and of welfare trained auditors, independently from certified farms (ASC, GlobalGAP, to monitor existing ones. The tests include using a dedicated second party, or by or BAP). All other fisheries are Risk speciation and screening for adulteration auditors employed by our retail partners. Assessed against the most relevant data using chemical and DNA methodologies at Hilton Seafood UK directly employs farmed sources such as ICES stock assessments, accredited specialist laboratories. We are fish welfare officers to audit all farmed Seafish RASS, Sustainable Fisheries members of the Food Industry Intelligence fish slaughter facilities globally and the fish Partnership Fish Sources, and Marine Network where we compile industry wide farms and hatcheries that supply them. Conservation Society. We do not source compliance statistics and share intelligence from any High Risk fisheries where there Our supplier approval process gives us on suspected food fraud. is no data available or there is proven full transparency on the safety, quality, poor fishery status, prevalence of illegal traceability and provenance of the raw fishing, lack of management, or very materials we use. This ensures our product high environmental impact. labels correctly describe the provenance of the product, including its species and We also buy directly from many fishing country of origin so that consumers can vessels that freeze their catch at sea have trust in the products we produce. giving us direct relationships with the major fishing quota owners.

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Why it matters Highlights Animal welfare is important to us, our – We were recognised by the Business retail partners, and their consumers. Benchmark in Farm Animal Welfare We react to improving science in animal as having achieved tier 2, which welfare and adopt new innovations that demonstrates animal welfare is ANIMAL HEALTH & WELFARE improve the lives of animals. Society is integral to our business strategy. demanding more transparency and there – Reviewed our animal welfare policy We meet our animal welfare is an increasing awareness of animal and published our annual animal welfare commitments by collaborating welfare across all of our species from statement, which demonstrates in investors and NGOs. Our customer insight with suppliers, retailers, and detail our progress against our animal shows that animal welfare is important welfare objectives. NGOs to improve the lives of and to consumers. We actively promote and – This year we joined the Global Coalition ensure the health of the animals in engage in standards development to for Animal Welfare which is a unique our supply chains. Alongside our deliver transparency and address welfare forum for organisations to come focus on the sustainability of our improvements in our supply chains. together to address welfare challenges. products we will ensure there is We have increased the transparency of – We improved our animal welfare no compromise in animal welfare. the animal welfare standards within our oversight by developing an annual animal supply chains. This year we revised our welfare survey to gather detailed animal animal welfare policy and issued our animal welfare data for our supply chain. welfare statement which can be found on – We are involved in a number of our website and will be updated annually. industry working groups to influence Commitments and objectives: Our animal welfare statement details our the progression of animal welfare approach and implementation of animal including the European Roundtable 1. Continued development of HFG welfare, it includes our eight animal on Sustainable Beef and Global GAP animal welfare standards for health and welfare objectives and details standards committee. abattoirs to encourage innovation our progress against them. We are also – As part of our annual audit of suppliers and the adoption of best practice. increasing our contribution to industry Measuring improvements abattoirs we have an animal welfare working groups to improve the lives section. We are developing a further through our outcome measures of animals in our supply chain and the reporting framework standard that gives our customers markets we operate in. the option of a more in depth animal 2. Lead in the development and welfare standard. implementation of humane slaughter for aquaculture 3. Ensure responsible antibiotic use throughout our supply chain

We are driving uptake of innovation and developing standards that advance welfare and reduce the need for antibiotics throughout our global supply chains.

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VIETNAMESE PRAWNS

One of our core animal welfare UN SDG Alignment objectives is that all animals and farmed fish are effectively stunned prior to slaughter. We adopted a new innovation during 2020, the first global introduction of electrical stunning in a commercial prawn farm. We completed a number of trials in 2020, which were independently evaluated by animal welfare experts. Since July, 80% of the farmed prawns (P. vannamei) in our supply chain have been electrically stunned.

Prawn stunner timeline

STUDY EQUIPMENT IN USE A GLOBAL FIRST Hilton Seafoods UK carried Took our Vietnamese Introduced into out a study of stunning prawn supplier to Turkey TRIALS Hilton Food Group techniques across all to see the equipment used First trials commercial supply aquaculture supply during harvest in Vietnam as a global first

2015 2016 2018 2019 Q1 2020 Q2 2020 Q4 2020

DEMONSTRATION PROTOTYPE DEVELOPMENT PRAWN WELFARE We took our suppliers Coordinated development Prawn stunning welfare of Sea Bass and Bream to of prototype for electrical reviewed and approved Salmon farms to demonstrate stunning of prawns by independent expert the technology

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Why it matters Highlights Developing an expert partnership – Developed global supplier ethical risk with our customers is key, along assessment system and remediation with compliance and alignment to and mitigation procedures. their criteria. This makes us industry – Completed our first Human Rights ETHICAL SUPPLY CHAINS leaders and promotes a responsible Impact Assessment in Vietnamese and caring company culture where we farmed prawns in partnership Hilton is rapidly expanding can use ethical best practices to drive with Tesco. globally with complex multi- transformational change throughout – Governance roles in Food Network our supply chains. By promoting ethical tier supply chains, any of which for Ethical Trade and the global standards development to assure Responsible Fishing Vessel Scheme has the potential to increase transparency and address welfare improving transparency and best the risk of ethical concerns. improvements we are delivering validated practice in supply chains. due diligence to our stakeholders. – Publication of Modern Slavery We are on a journey of increasing statement that demonstrates our transparency of the ethical standards commitment to minimise likelihood within our supply chains and our within supply chains and own factories. Commitments and objectives: engagement in improving the safety and – Continued Modern Slavery, due 1. Comprehensive supply chain wellbeing of the people working within diligence and ethical trading training ethical compliance agreements them and those supported or otherwise for managers and employees across and assessment programme impacted by them. This journey takes our sites. 2. Driving collaboration and standards us further up the pyramid of progress – We provide anti-corruption development to assure transparency as shown in the diagram opposite. training to all relevant employees, and address welfare improvements Whilst we have progressed into some including management. in our supply chains aspects of leadership we recognise the importance of getting our policies, 3. Conduct human rights impact standards, assessments, and engagement assessment in accordance with in improvement consistent across OXFAM guidelines in Vietnamese the group. To achieve this we have farmed prawns built a global supply chain ethical risk assessment system that incorporates the SEDEX platform, of which we are A/B members. This includes remediation and mitigation procedures. We have published a Modern Slavery statement that demonstrates our commitment to raise awareness, identify and address any such abuse of people within our supply chains and our own factories. This is supported by continued modern slavery and ethical trading training for our Executive Leadership Team, MDs, managers and employees.

We are leading collaborative action to improve the lives of workers across our supply chains.

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HUMAN RIGHTS IMPACT ASSESSMENT

During 2020, in collaboration with The assessment identified good practices Tesco and our local supply chain and some improvement opportunities. partners, we commissioned our fist The participants worked together in independent Human Rights Impact the development of an action plan for Assessment (“HRIA”) in Vietnam engagement to address the gaps and for our farmed prawns. HRIAs are a share the best practices identified. process for identifying, understanding, We are committed to using the assessing and addressing the positive learnings to strengthen the recruitment and adverse effects of the business and worker welfare processes and project or activities on the human rights conditions in Vietnam and to use the of impacted workers and community learnings elsewhere. members. We were able to include all the tiers of our supply chain within Vietnam We found this process helped in the study: factories, farms, hatcheries, considerably in our positive engagement feedmill, and fishmeal. with our suppliers and will continue to use this approach in our supply chains. The study was carried out in accordance The study contributed towards alignment UN SDG Alignment with Oxfam guidelines. They were able with the UN SD Goal 8 – Promote to complete the assessment safely in sustained, inclusive and sustainable person using a local team. economic growth, full and productive employment and decent work for all.

OUR ETHICAL JOURNEY

GOING BEYOND GOVERNANCE OF INDUSTRY STANDARDS ADVOCACY FOR RIGHTS AND IMPROVED STANDARDS

ETHICAL LEADERSHIP HUMAN RIGHTS IMPACT ASSESSMENTS MULTI TIER ASSESSMENTS AND ENGAGEMENT IN COLLABORATIVE IMPROVEMENT

EMBEDDED ETHICAL RISK MANAGEMENT FRAMEWORK AND RESOURCE FOR RISK ASSESSMENT AND AUDITS OF FIRST TIER SUPPLIER STANDARDS POLICIES AND AGREEMENTS, INTELLIGENCE GATHERING

ETHICAL BASELINE AWARENESS BASIC RISK ASSESSMENT OF FIRST TIER DEVELOPING POLICIES AND SUPPLY CHAIN REQUIREMENTS BUILDING KNOWLEDGE

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Sustainability report continued

Why it matters Highlights There is a demand by consumers for – We conducted consumer research food that is healthy for themselves and in the UK that shows how health and the planet. Social consciousness is of sustainability are rapidly growing in growing importance to consumers when importance as drivers of diet choices. CONSUMER HEALTH making decisions about their lives and the – We developed a science based narrative food they eat. Covid-19​ has heightened on the positive role of meat in the diet, INNOVATION consumers’ awareness of diet and comparing the footprint of meat with Hilton believe we have a health, with research showing increased its nutritional value. consumer interest in natural, immune responsibility to make it easier – In the UK a report was prepared for the boosting foods and looking for local safer DEFRA Seafood 2040 strategy team for consumers to identify the most food options as well as indicating an (Hilton are members of the Leadership healthy and sustainable option. increased interest in food provenance and Group) that demonstrates the clear We are using innovation to provide sustainability. The concept of sustainable health benefits from increasing the consumers healthy food choices in diets is not new to the food industry. consumption of seafood in diets. Shifting to sustainable food consumption – Since September 2019 we have line with dietary recommendations. ​​ has been highlighted as a key pillar for seen a 300% growth in retail sales We want to help consumers make the UN 2021 summit and also in the of vegetable protein based foods. ethical and sustainable choices EU farm to fork strategy. – Hilton Seafoods developed a range of for both their health and the ​The need for dietary shifts worldwide higher fibre breaded and lightly dusted planet. We promote healthy choices is made clear with the rising challenge products. This doubled the fibre content and provide ranges of affordable of obesity, and the gap between of the coated fish which is equivalent products with lower fat and salt recommended dietary choices and to an extra 27 tonnes of fibre per year. actual consumption. content to help people to reduce – For Tesco UK we launched several vegan Christmas items in the Wicked these in their diets. We are monitoring how consumers are thinking about food and its impact Kitchen Brand. The Wicked Kitchen on their health. For example: No Turkey Crown was the top-selling meat alternative Christmas product. – 57% of global consumers allow the Making it easy for consumer to switch impact of a product on their health and to a plant-based Christmas dinner. Commitments and objectives: wellness influence their purchase all or – We’ve introduced a range of products most of the time (Source: Global Data). 1. Provide consumers with the facts globally, incorporating vegetables in – 63% of UK consumers try to eat healthy on the role of nutritious proteins products that were originally 100% some or all of the time (Source: Mintel). in a diet that is healthy for us and meat. This enables consumers to the planet – 46% of Polish consumers are prioritising balance their meat and vegetable 2. Assess the environmental and healthier products more than before the consumption without changing their nutritional science to support pandemic (Source: Mintel). favourite meals. They help consumers the health and sustainability to reduce their fat intake. credentials of our seafood and vegetable proteins 3. Industry leading innovation in vegetable proteins

Ensuring our consumers can make balanced choices that are healthy for them and for the planet.

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DEVELOPING A FRAMEWORK FOR SUSTAINABLE AND BALANCED DIETS

The FAO define sustainable diets as diets with low environmental impact which contribute to food and nutrition security and to healthy life for future and present generations. As an initial analysis in 2020 we developed a framework to communicate the role of red meat in a climate friendly food system. The outcomes show that red meat plays an important role in a balanced diet, allowing us to advise our customers when developing future category strategies. Using the latest climate science and the potential for carbon reduction innovations we can demonstrate that red meat can deliver these nutritional benefits within climate change boundaries. Protein demand will double by 2050 and a balance of sources are needed that can meet the full nutritional requirements of a growing population. Livestock also utilises feedstock UN SDG Alignment that we cannot eat directly, can be raised on marginal lands for other food crops, significantly contribute to global economies and play a key part in positive regional and global culture. We are in the process of developing this framework for other proteins in further consultation with scientists, our suppliers and our customers.

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TCFD DISCLOSURE The Executive Leadership Team oversees We have conducted an initial risk and the strategy to meet our climate targets and opportunity analysis as shown in the table Introduction to build a portfolio of products that align to below. During 2021 we will perform a In 2019, Hilton Food Group stated shifts in demand. The operations teams, led more detailed analysis of climate risks its commitment to implementing by the Chief Manufacturing and Purchasing and opportunities, with support from the Task Force on Climate-related Officer, is responsible for climate risks expert consultants. This will consider Financial Disclosures recommendations mitigation at site levels. The CSR team, led our exposure to physical impacts from (“TCFD”). We recognise climate change by the Chief Quality and CSR Officer and climate change on our operations and as an environmental threat, and that the CSR Director, is responsible for climate supply chains, and the impacts and governments, industry and wider society risks mitigation across our supply chains. opportunities from the transition to need to act together to mitigate the These teams oversee carbon reduction a low carbon economy. effects. This poses potential challenges projects in partnership with customers to and opportunities for our global food and suppliers, and hold governance roles business and value chains. This is HFG’s within industry collaborative forums. For more details of our risk management first TCFD disclosure and explains how our process and principal risks see P24 climate risk and opportunity assessments are being conducted, how they fit into The CSR governance structure is Our Strategy our broader ESG policies and how we are detailed in the diagram on P56 Our climate risk mitigation strategy is driving engagement across our business. to reduce our operational climate change Risk Management impact as well as to pursue the growth Governance We recognise growing concern and the opportunities from providing lower Our CEO, as part of our commitment compelling science about the possible climate impact food to an increasingly to sustainability, leads our positive impacts of climate change across the well-informed consumer. world. At HFG climate change was response to addressing climate risk In 2019, we formalised our eight pillar previously recognised as an emerging risk, and opportunities. ‘Quality Naturally’ strategy, as described however the annual review process has on page 32 using a materiality matrix Climate risks’ (physical and transition) elevated climate change to a Principal Risk that addresses the most important severity, impacts and mitigation are (page 27), and we continue to develop our environmental and social topics for considered within the Hilton Risk approach to climate change risk mitigation. Management Committee and reported Hilton Food Group. to the Hilton Audit Committee, which recommends the risk categorisation Category Risks for Hilton Opportunities for Hilton and mitigation measures for final Consumer – Not aligning product portfolio – Growth in higher value and/or more approval by the Board. behaviour shifts to consumer trends resulting profitable sectors where we have (Transition) in reduced profits. established expertise. A Non-Executive Director chairs the – Cost to balance capacity and – Development of lower footprint new Hilton Sustainability Committee, capitalise on growth sectors. products and supply chains, formed in the latter part of 2020, and our – Reduced profitability from some including those local to sites. CEO is a member. It advises the Risk parts of our portfolio. – Leading innovation in plant-based Management Committee on climate risks and blended products. and opportunities, and seeks expert advice externally. The role of the Sustainability Government – If product pricing is adjusted to – Growth in sales from investment in Committee is to review the strategy to intervention reflect the carbon footprint there could low carbon factories and supply chains. to support be a reduction in demand, leading to – To provide consumers the choice address climate risks and opportunities, decarbonisation reduced profits from foods where the and to monitor progress in reducing our to buy the foods they want with of specific foods footprints have not been mitigated. demonstrably lower footprints. climate footprint and the footprint of (Transition) our supply chains. – Increased availability of grants and subsidies to facilitate investment in These committees meet regularly innovative practices across our sites throughout the year, and work in synergy and supply chains. with overlapping membership utilising and Impacts if Acute physical impacts such as flooding, – To be leaders in the decarbonisation ensuring broad reach of skills and expertise society’s efforts water stress, and fire already have an of our operations and supply chains across the business. The Board has full are insufficient impact today and may increase in frequency to play our role in ensuring these responsibility to ensure the effectiveness to prevent and severity. Chronic physical risks are more impacts do not occur. of the risk management systems in place, climate change likely to manifest themselves over the longer – To ensure we are a preferred partner and undertakes an annual review of the (Physical) term. However we considered it reasonable through the delivery of shared Science to assume that warming will be reduced by Based Targets with our retail partners. risks and opportunities identified by these societies’ measures to the point where the committees. The Board convenes regularly impacts on Hilton are not severe because: – To regularly review site planning in order to mitigate risk. and, where relevant, climate-related issues – Our sites are not in high physical water form part of the regular Board agenda. or fire risk areas so the impacts and – Investment in improving the energy The Board has oversight of the business disruptions are deemed to be low; and and water efficiency of our sites. strategy to mitigate the risks and pursue – There is a low risk of disruption to – To lead in establishing water the opportunities for Hilton to lead in the supply chains as we have the flexibility stewardship initiatives in our provision of low climate impact food. to adapt over time. supply base.

54 HILTON FOOD GROUP PLC | ANNUAL REPORT AND FINANCIAL STATEMENTS 2020 STRATEGIC FINANCIAL ADDITIONAL OVERVIEW REPORT GOVERNANCE STATEMENTS INFORMATION

In 2020, we conducted an initial exercise As part of our work to achieve water Metrics and Targets to understand the climate change risks efficiency and risk mitigation we utilise The key metrics that HFG uses to measure and opportunities on our operations and water supply buffer tanks to ensure we its climate-related impacts are Scope 1, value chains as shown in this table. have access to peak water requirements 2 and 3 emissions combined with total when water supply is reduced. To respond to these risks and opportunities, consumption and usage of electricity, gas, Where required we incorporate flood the Board and the Executive Leadership water and refrigerants. We also monitor mitigation including run off water capture Team considered Hilton’s strategy in the split between renewable and non- tanks to protect the local water systems. preparing its transition to a low carbon renewable energy as we seek to move economy. To fully exploit opportunities For our supply chains HFG is actively towards more renewable sources. for low carbon food production, we firmly engaged in the establishment and In assessing carbon emissions, we believe that our role is to ensure that governance of collaborative forums consider both location and emissions, consumers are able to choose from a that directly address reductions in the as well as sector overviews and supplier- range of sustainable and healthy proteins climate footprint of our key proteins and specific emission factors. Reporting of and to provide them with the right will contribute to our Scope 3 Science Scope 1, 2 and 3 emissions follows the information to make these choices. To do Based Target: GHG corporate protocol. this we are measuring and addressing – We successfully sought election to the the footprints of the foods we make, and To inform our consideration of climate board of the European Roundtable for diversifying our range into fast-growing impacts we conducted a review of our Beef Sustainability (“ERBS”) of which low impact sectors. HFG will provide own Scope 1 and 2 emission sources we are now vice chair. The ERBS has its partners with a balanced portfolio and our Scope 3 impacts (using the set a target to reduce cattle emissions of meat and fish products that have Quantis tool). This showed that the largest by 15% by 2025 and has established significantly reduced environmental impact is from our purchased goods and national platforms, including the UK impacts, alongside growing its sales services, with agricultural products being Cattle Sustainability Platform, where of plant-based alternatives. the single largest sector. We are rolling Hilton are coordinating the actions to out tailored reduction and improvement Our consumer and market insight deliver the emissions reduction target. plans on all sites after identifying specific teams are mapping emerging consumer – We represent ERBS in the Global opportunities for heat recovery and behaviour and following developing Roundtable for Sustainable Beef efficiency as described on page 43. regulation, supported by our membership setting Science Based Targets. – Our Scope 1 and 2 emissions of trade associations such as the Food – In the Netherlands, we have and Drink Federation. are validated and verified by GEP collaborated with a dairy company Environmental to a ‘limited level To address our climate footprint the to take ex-dairy cows and finish them of assurance’, which is in line with decision was taken to set Science Based to produce beef with an independently ISO 14064:3. Targets for our own operations and verified significantly lower climate our supply chains that will lead to a net footprint than dedicated beef cattle zero goal. This commitment has been (see case study on page 39). Our Provisional Science Based Targets communicated to SBTI, and we are in – We contributed to the UN Global (subject to approval) the process of determining the targets Compact Action Platform for and our track to net zero. Sustainable Ocean Business report Percentage reduction targets ‘Accelerating Sustainable Seafood’ that To achieve these targets we are building Target year Target year explains the key enablers for seafood 2025 2030 decarbonisation plans for each of our to transition to net zero carbon and Scope 1* (WB2C) 12.5% 25% operations in line with the path required other SDG objectives. to meet interim and final targets. We are Scope 2* (WB2C) 12.5% 25% also working with our key suppliers to – We are engaging in advocacy to end Scope 3** (2C) 6.5% 12.3% deforestation associated with soy and build decarbonisation plans for our * Well below 2 degree pathway. supply chains. cattle in Brazil as one of the Signatories of Support for the Cerrado Manifesto. ** 2 degree pathway. For our own operations we have We took part in the successful We are currently reviewing the baseline commissioned Schneider Electric to build negotiations, to set a 2020 cut-off a decarbonisation plan for each of our data for our Scope 3 targets in consultation date, with the traders supplying with our key suppliers. electricity supply contracts, and assist salmon feed companies. We are us to set our Science Based Targets. also founding members of the Soy In 2020 we continued to invest in energy Transparency Coalition that benchmarks efficiency projects that are detailed soy traders on their programmes to in the Resourceful Factories section halt deforestation. of this report, and have committed to obtaining ISO 50001 energy management certification globally. We are seeking opportunities for investment and grant support for low carbon technology for both heat generation using renewable energy, and water capture and treatment, which we plan to introduce in due course.

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Sustainability report continued

GOVERNANCE WHO IS RESPONSIBLE FOR CSR AT HILTON During 2020 we established a new Sustainability Committee, Chaired by MAIN BOARD a Non-Executive Director, to govern the delivery of our Quality Naturally Set the ambition for long term CSR programme, strategy and to provide insight to the embedding this in the business culture senior leadership team on emerging risks and opportunities for the CHAIRMAN CEO Hilton Food Group.

This committee also works alongside CHIEF FINANCIAL OFFICER NON-EXECUTIVE DIRECTORS the Hilton Risk Committee, who evaluate the climate-related risks, and together they consider the opportunities for the Group to lead as we transition to a net SUSTAINABILITY COMMITTEE zero carbon economy (as described in our TCFD statement). NON-EXECUTIVE DIRECTOR CEO Our Quality Naturally strategy and its associated targets and commitments are led from the top by our CEO who is fully REPRESENTATIVES FROM CSR DIRECTOR supported by the Board and the Executive EXECUTIVE LEADERSHIP TEAM Leadership Team. The CSR team (led by the Chief Quality and CSR Officer and the CSR Director) EXECUTIVE LEADERSHIP TEAM coordinate our supply chain engagement and global reporting. They work alongside Agree and oversee delivery of targets the business function heads and leadership teams in our operating companies who CHIEF QUALITY AND REGIONAL CHIEF CHIEF TECHNOLOGY OFFICER have full ownership of delivering the SUSTAINABILITY OFFICER OPERATING OFFICERS targets for their areas of responsibility. CHIEF PEOPLE AND CHIEF MANUFACTURING AND CHIEF COMMERCIAL OFFICER Our CEO and the Executive Leadership CULTURE OFFICER PROCUREMENT OFFICER Team are updated on the CSR agenda and progress towards our own commitments, and our customers’ targets, on a monthly basis, with the main Board being updated SENIOR MANAGEMENT TEAM every six months. Set global strategy and oversee Group and local implementation plans

GROUP HEAD OF ENERGY MANAGING DIRECTORS MANAGEMENT & FACILITIES

GROUP HEAD OF PROCUREMENT CSR DIRECTOR (NON-PROTEIN)

Integrate CSR strategy into their areas of responsibility

HR LEADS PROCUREMENT LEADS

GROUP CENTRAL OPERATIONAL CSR TEAM LEADS

Responsible for CSR projects and reporting

SITE CSR COORDINATORS

Direct responsibility for CSR, including climate Shared responsibility

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UNGC AND SDG ALIGNMENT THE GLOBAL GOALS FOR SUSTAINABLE DEVELOPMENT Hilton supports the Sustainable Development Goals. Recognising that this is a critical decade of action to deliver these goals we have joined the UN Global Compact as full Participants and have committed to their 10 principles.

Our CSR strategy contributes to many of the Sustainable Development Goals although our focus is on our alignment with the four goals shown in this table. We recognise that these goals can only be achieved through collaboration between NGOs, industry, individuals and governments. Our engagement is with action forums that bring together the full value chain SDG HOW WE ARE CONTRIBUTING together with government and NGOs. Hilton have committed to halving our food waste by 2030 as a ‘Friend of Champions 12.3’ (Champions12.3.org). We are measuring our food waste at every site and reporting For more information visit www.unglobalcompact.org/ globally. We have made Group-wide commitments to deliver what-is-gc/mission/principles sustainable packaging in a circler economy.

We have committed to set a science based target through the Science Based Targets initiative and signed the Business Ambition for 1.5°C pledge. We are reporting our emissions of GHGs and water use through our Annual report and CDP. We are investing in onsite electricity generation and renewable energy.

We lead in fishery and aquaculture supply chain collaboration and innovation in sustainability and welfare. Together with industry partners and NGOs we have negotiated voluntary marine protected areas and funded Fishery Improvement Projects. Our target is 100% MSC certified wild caught fish in our direct supply chains. In aquaculture we have introduced innovative solutions to address welfare and sustainability challenges including using algal oils to replace oils from wild caught fish.

We have set targets to address deforestation, green house gas emissions, antibiotic use and productivity of our meat and vegetable proteins supply chains. We are currently vice chair of the European Roundtable for Beef Sustainability. We are founder members of the Soy Transparency Coalition and are engaged in successful advocacy to set zero deforestation cut off dates for our supply chains in Brazil.

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Sustainability report continued

ADDITIONAL INFORMATION

Charitable donations in 2020 £79,668 Total site waste in 2020 was 5.47% (25,675mt). In 2019 this figure was 5.77% (21,436mt) 25,675mt We have received no environmental fines or human rights/quality violations for the past three years 0 The fatality rate for the past four years 0

Our screening results show our Scope 3 emissions footprint is 7,443,723 tonnes CO2e. In the process of setting our SBTs we are working to build a hybrid method to combine this tool with supply chain specific data. This data is not currently verified 7,4 43,723* Zero incidents of non-compliance with water quality permits, standards, and regulations for the current fiscal year (and last two fiscal years) 0 2020, and the figures in this report are our proposed base year for our scope 1, 2 and 3 emissions. The rationale for this is due to the business structure changes, including the first full year of our newest factory in Australia. This covers 100% of our operations for direct and indirect emissions reporting 100% There have been zero of notices of food safety violation received for the past three fiscal years. No monetary losses have occurred due to the result of legal proceedings due to labelling or marketing practices for the same period 0 The percentage of renewable electricity used from total is 24%. Including nuclear zero emissions electricity this rises to 47% 24% 100% of 2020 scope 1 and scope 2 (location and market based) reported emissions have been externally verified with limited assurance by an independent third party (GEPEnv) in accordance with ISO14064:3 100%

Usage and Environmental data FY20 FY19 UK Global (excl. UK) Group Total UK Global (excl. UK) Group Total Emissions

Scope 1 (tCO2e) 4,503 6,136 10,639 6,832 4,720 11,552

Scope 2 – location based (tCO2e) 8,607 49,069 57,675 7,609 44,609 52,218

Scope 2 –Market based (tCO2e) 0 47,103 47,103

Total Scope 3 (location) (tCO2e) 2,903,052 4,540,671 7,4 43,723

Total Scope 1,2 & 3 (location) (tCO2e) 2,916,161 4,595,876 7,512,037

Intensity ratio SC1&2 (tonnes CO2 per tonne produced) 0.03 0.12 0.15 0.04 0.13 0.17

Intensity ratio SC1&2 (kg CO2e per £ of Group turnover) 0.005 0.020 0.025 0.008 0.027 0.035 Energy (kWh) Total renewable fuels consumption 0 0 0 0 0 0 Coal 0 0 0 0 0 0 Oil 0 0 0 0 0 0 LPG 0 1,981,079 1,981,079 Natural Gas 21,332,658 30,218,747 51,551,406 Total non-renewable fuels consumption 21,332,658 32,199,827 53,532,485 Solar generated electricity 243,000 2,260,000 2,503,000 0 0 0 Total renewable electricity consumption 243,000 25,984,033 26,227,033 Total non-renewable electricity consumption 37,526,233 71,445,071 108,971,304 Non-renewable other energy consumption (heating) 0 1,392,196 1,392,196 Total renewable other energy consumption 0 0 0 Total renewable energy consumption 243,000 25,984,033 26,227,033 Total non-renewable energy consumption 58,858,892 105,037,093 163,895,985 Total energy consumption 59,101,892 131,021,126 190,123,018 Energy consumption (kWh used per tonne of volume produced) 447 397 411 Energy consumption (kWh used per £ of turnover) 0.055 0.078 0.070 * Our Scope 3 method of calculation is based on the Quantis tool from WRI (world resources institute). We follow the GHG corporate protocol to calculate our Scope 1 and 2 emissions, using IEA emissions factors for our location based emissions and supplier specific factors to calculate our market based emissions.

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Water usage Financial Year UK The Netherlands Ireland Sweden Australia Portugal Denmark Poland Group Total Freshwater FY19 297,500 169,000 49,000 59,000 47,000 35,000 45,000 74,000 775,500 usage (m3) FY20 329,600 164,700 45,000 58,300 249,300 31,950 46,000 96,000 1,020,850

FY20 FY19 Group Total Group Total Freshwater usage (m3) intensity ratio (m3 per £ turnover) 0.00037 0.00043

Countries/regions in which Hilton Food Group plc operates classified under high, moderate, low levels of water stress according to the World Resources Institute:

High water stress 0 Moderate water stress 0 Low Water stress 15

2020 2019 2018 2017 Gender Male Female Total Male Female Total Male Female Total Male Female Total Board 5 2 7 5 1 6 5 1 6 5 1 6 Executive management (“ELT”) 8 2 10 8 2 10 8 2 10 8 2 10 Senior managers 47 11 58 39 11 50 39 11 50 40 8 48 Employees 3,185 2,206 5,391 2,981 1,963 4,944 2,878 1,840 4,718 2,483 1,188 3,671 Board 71% 29% 83% 17% 83% 17% 83% 17% Executive management (“ELT”) 80% 20% 80% 20% 80% 20% 80% 20% Senior managers 81% 19% 78% 22% 78% 22% 83% 17% Employees 59% 41% 60% 40% 61% 39% 68% 32%

Health and Safety 2020 2019 % Change Hours Worked 9,143,579 9,717,405 -5.9 First Aid Incidents 677 573 18.2 Lost time Incidents 87 147 -40.8 Lost time Incident Frequency Rate 9.51 15.13 -37.1 Number of Days Lost 2,198 2,012 9.2 Lost time incident severity rate 240.33 207.05 16.1 Non injury incidents/hazards 4,993 85* N/A * This data was not recorded on a Group basis in this format in 2019.

Nutritional Context, for growing areas in healthier products % of total sales Products with a high source of Omega 3 4.6% Low fat products (<3% and 3-5% fat) 4.8% Lower fat products (<5% fat) 2.9% Products containing Additives (E Numbers) 23.2% Low salt products (less than 0.12g/100g) 11.3%

Social Metrics 2020 2019 2018 2017 Soft Skills training hours 6,554 4,523 NA NA % of employees covered in collective bargaining agreements 33% NA NA NA Total staff turnover 17.1% 21.9% 22.5% 30.6%

APPROVAL OF THE STRATEGIC REPORT It should be noted that the Strategic report has been prepared for the Group as a whole, and therefore gives greater emphasis to Pages 4 to 59 of this Annual report comprises a Strategic report the Company and its subsidiaries when viewed in its entirety. which has been drawn up and presented in accordance with applicable English company law, in particular Chapter 4A of the Approved by order of the Board of Directors Companies Act 2006, and the liabilities of Directors in connection with this report shall be subject to the limitations and restrictions Neil George provided by such law. Company Secretary 6 April 2021

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