ConAgra Foods Citizenship Report 2016 Table of Contents Overview & Approach Better Planet Good Food Stronger Communities About This Report Leadership Perspective 2020 Sustainability Vision Food Safety & Quality Business Ethics & Reporting Parameters 90 Human Rights ConAgra Foods Locations 91 Letter from CEO 4 Focusing on Management Approach 36 What Matters Most 11 Management Approach 65 Key Impacts, Risks & Audit & Certification Opportunities 92 Our Approach to Environmental Programs 39 Code of Conduct 66 Management 13 Data Summary 94 Citizenship Home Food Safety 40 GRI Content Index 98 Governance 5 Culture & Workplace Climate Change & Our Citizenship Philosophy Energy Efficiency Nutrition Management Approach 68 and Focus Areas 5 Employee Management Approach 14 Management Approach 41 Materiality 6 Health & Safety 69 Scope 1 & 2 Portion & Calorie Control 43 Stakeholder Engagement 8 Employee Wellness 72 GHG Emissions 17 Dietary Variety 44 Our Value Chain 9 Diversity & Inclusion 73 Scope 3 GHG Emissions 18 Heart Health 48 Learning & Development 76 Sustainable Transportation 19 Communication Through Energy Labeling & Outreach Community Impacts Use & Efficiency 21 & Philanthropy Nutrition Labeling 49 Impacting Hunger 77 Genetic Modification 50 Water Resources Partnerships 79 Allergen Labeling 51 Management Approach 22 Volunteerism 83 Interacting with the Water Use 24 Nutrition Community 52 Omaha Initiatives 86 Water Risk 25 Advertising to Children 53 Eliminating Waste Responsible Sourcing Management Approach 27 Management Approach 54 Zero Waste to Animal Welfare 55 Landfill Journey 28 Local Sourcing 56 Eliminating Food Waste 30 Sustainable Palm Oil 58 Packaging Sustainability 32 Sustainable Agriculture 59 TABLE OF CONTENTS 2 Overview & Approach It’s been a very transformative year for Good Food ConAgra Foods as we continue on our We are a food company at our core and food safety and quality is the single most journey to become a higher performing, important issue to our industry. We are committed to advancing food safety not more contemporary company. In FY16, only within our own facilities, but across the food industry. The expectations we we completed the sale of our private label hold for our teams and supply chain partners are grounded in the sentiment that food business and announced our intention we make the food enjoyed by our own families, friends and loved ones. That’s why to separate ConAgra Foods, Inc. into two 100% of ConAgra Foods full-time production facilities continue to be certified by public companies, Conagra Brands and Global Food Safety Initiative standards. Lamb Weston. We also moved into our Stronger Communities new headquarters in Chicago’s iconic Building stronger communities is a priority because we believe we have a Merchandise Mart. While we’ve taken solid responsibility to the areas where we live and work. That’s why ConAgra Foods steps to streamline how we operate, I’m proud to say that delivering on dedicates the month of May to community service. In May 2016, more than 2,100 our citizenship ambitions has still remained a top priority. passionate employees volunteered more than 5,800 hours to help reduce hunger In FY16, our citizenship approach continues to be guided by our recently in their communities. This represents 70 projects, each organized by teams of completed materiality assessment which brought to light those issues most employees, across 10 states as well as Mexico and Puerto Rico. The result? material to the food industry, our business and our stakeholders. The assessment More than 620,000 meals were packed for those suffering from food insecurity provides a 360-degree view on the relative priority of environmental, social and in our communities. That’s quite an impact, and only one example of our efforts. governance issues. Based on the findings from our materiality assessment, I invite you to read this report to learn more about citizenship and sustainability we built our citizenship efforts around three main focus areas: Better Planet, at ConAgra Foods. Our efforts are a point of pride for the entire company, and we Good Food and Stronger Communities. These areas continue to guide our efforts take these commitments seriously. As such, we commit to continuing to evolve and I have highlighted some of our recent achievements and initiatives below. our approach as both our company and the marketplaces in which we operate Better Planet change. I’d like to congratulate our employees, who are at the heart of these Our ongoing internal Sustainable Development Awards program continues to programs. Their ideas and efforts make us the company we are today. bear fruit. Our employees earned accolades for projects that eliminated 16 tons Thank you for your continued support. of waste, optimized and improved packaging while using 2.3 million pounds less material, conserved more than 365 gallons of water and reduced greenhouse gas emissions by more than 15,300 metric tons. In addition to being better for the Sean Connolly environment, these programs also resulted in more than $8.7 million in savings President and Chief Executive Officer for ConAgra Foods. ConAgra Foods, Inc. CONAGRA FOODS 2016 CITIZENSHIP REPORT > OVERVIEW & APPROACH > LEADERSHIP PERSPECTIVE 4 Governance Our Citizenship Philosophy and Focus Areas Our Citizenship strategy is overseen by our most The people of ConAgra Foods make everyday food in extraordinary ways. That means making food that’s senior executives, governed by our senior leadership delicious, safe, nutritious and convenient, while collaborating with others like farmers, suppliers, customers team, developed and managed by a cross-functional and people who love our food. We’re looking forward to making good food for generations to come, and doing management team, and embraced and implemented so in a way that creates stronger communities and a better planet. by our nearly 20,000 passionate employees. We’ve built our citizenship strategy around three focus areas that articulate our values as a responsible At the highest level, our Board of Directors’ corporate citizen — Better Planet, Good Food and Stronger Communities. Nominating, Governance and Public Affairs Committee regularly meets with management to review internal and external factors and relationships affecting the company’s reputation, including social and environmental issues. This committee is composed of independent Board members, none of whom is or has ever been employed by ConAgra Foods. Additional information regarding our Board and governance principles is available online in our 2016 Proxy Statement. Our Citizenship strategy is developed by a cross- functional team composed of key leaders and Better Planet Good Food Stronger Communities subject matter experts in key functional areas. The health of the planet and We want nothing more than Creating shared value with This team supports the implementation of programs availability of natural resources to make safe, delicious, our community of employees, that drive progress against our citizenship focus is intricately linked to every affordable and nutritious foods investors, suppliers and business areas and sustainability goals. Our employees’ part of our business, so we’re while providing the information partners — as well as the places engagement provides the passion, enthusiasm focused on taking action on you need to make choices where we live and operate — is and innovation to embed corporate responsibility climate change, preserving for a healthy lifestyle. critical to our long-term success. into the fabric of our company. By volunteering water resources, eliminating in our communities, participating on our plants’ waste, and responsibly sourcing Green Teams and collaborating on cross-functional materials to ensure long-term sustainability projects, our employees bring our availability of resources. citizenship ambition to life. CONAGRA FOODS 2016 CITIZENSHIP REPORT > OVERVIEW & APPROACH > OUR APPROACH TO CITIZENSHIP 5 Materiality: A Look Across What Matters, Where it Matters Our Value Chain During FY15, we completed a robust materiality assessment process to identify, assess, and prioritize the Understanding the impact of our business environmental, social and governance issues relevant to the food industry, our business, and stakeholders. throughout the life cycle of the food we make is In FY16, our Citizenship strategy remains deeply rooted in this holistic and objective view into what issues critical to developing a comprehensive approach matter most. At the same time, an open and ongoing dialogue with our stakeholders keeps the materiality to citizenship. This view offers insight into where process as dynamic as the marketplace itself. issues matter most, while also helping to prioritize where we need to influence performance outside Our approach included: of our direct control. For example, by collaborating • Identification of issues, relying on credible and respected external sources to compile a robust list of issues with farmers, suppliers, contract manufacturers and specific to the food industry. We categorized nearly a hundred environmental, social and governance issues outside transportation networks, we are developing into 17 themes, defining the scope of our assessment and guiding our conversations with stakeholders. innovative ways to improve supply chain efficiency, while providing greater value to our customers and • Internal assessment of business impact, considering such things as our customer and consumer needs, more sustainable products