GOOD FOR YOU GOOD FOR THE PLANET 2020 SUSTAINABILITY REPORT

1 “We bring to the world JOYFUL, WHOLESOME and HONEST FOOD, inspired by the ITALIAN LIFESTYLE and the MEDITERRANEAN DIET”

The “Good for You, Good for the Planet” report is the tool used to share with all of society the path undertaken by Barilla, consistently with the United Nations’ Sustainable Development Goals, part of the 2030 Agenda.

In addition, the report shows the key results that have been achieved and the roadmap for coming years. The results presented in this report were achieved thanks to all Barilla people, their passion and dedication.

The information and data contained in the report relate to Barilla Group for the period from 1st January to 31st December 2019, unless otherwise indicated. 04 66 CONTENTS A FUTURE THAT WE WILL GOOD FOR YOU BUILD TOGETHER Nutrition Quality and food safety Responsible marketing 06 Food education A MISSION DRIVES US 94 08 GOOD FOR THE PLANET ABOUT US Responsible supply chains Group profile Animal welfare Values Product packaging Production 20 GOVERNANCE 148 Business model PEOPLE AND COMMUNITY Code of Ethics Barilla people Fighting corruption Health and safety Risk management Training and talent development Internal communication 36 Trade union relations HOW WE RESPOND Support to communities TO GLOBAL CHALLENGES 180 International scenario Consumer goods sector COVID-19 EMERGENCY BCFN Foundation Our contribution to the 2030 Agenda 186 Materiality analysis ANNEX Stakeholders’ engagement Methodological note GRI Index A FUTURE THAT WE WILL BUILD TOGETHER

GUIDO, LUCA AND PAOLO BARILLA, Chairman and Vice-Chairmen

The last few months have forced us to reflect on, with even greater depth, the agri-food sector and our role in its context.

We have witnessed an unprecedented crisis that caused over 3 billion people to be isolated and that has brought the world economy to its knees. This scenario has made us even more aware of how crucial our social role is as food producers for millions of people.

In the modern era, people have developed systems and relationships to try to protect and improve their existence, and to overcome hunger and disease. By evolving, this system has created distortions and excesses that have seriously compromised our future, both from a health and environment point of view.

In light of this, Barilla, which today involves thousands of people in its complex supply chain, is even more determined to be a company that guides positive change.

We firmly believe that we have the experience, skills, culture and strength to face new challenges and redesign the future.

In this process our Mission Good for You, Good for the Planet will once again be our beacon.

04 05 A MISSION We were conscious of the fact that this opportunity to build a better future, with period would have a profound effect on more solid and flexible systems. DRIVES US the economy, so we immediately started working to redesign the our future. In this context, our Mission will serve as an even brighter guiding light. Lastly, we strengthened our solidar- CLAUDIO COLZANI, CEO ity and support to local communi- Good for You, ties in the countries in which we live Good for the Planet: and operate, by making donations our guide WHAT DID 2019 MEAN to hospitals, food banks, local associa- FOR BARILLA? +1% in terms of volume tions, and schools. We also supported scientific research and first-line medical We will continue to offer quality prod- In 2019 we once more invested in +3% in terms of turnover personnel during the emergency. ucts that have a positive influence on strengthening our way of doing busi- *(NET OF THE FOREIGN EXCHANGE EFFECT) eating habits. We will continue to work ness, as a Group and through each one on the production and supply chains, of our brands. 3 side-by-side with our suppliers, and we We have continued focusing our atten- priorities: people safety will strengthen our commitment to tion on the packaging of our products, reduce emissions, rendering processes and support to communties, 2019 exclusively using virgin fibres from for- more efficient and effective and offset- another year of positive results business continuity, ests in which reforestation is guaranteed. ting the remaining emissions. ridesign the future Lastly, we have reached 99.7% recycla- In this direction, we continued our bility of product packaging and we will Lastly, we want to provide our people ongoing commitment to offer products reach 100% in the next months. with an increasingly inclusive and fair with an increasingly better nutritional ON WHAT FOUNDATIONS environment. That is why we are com- profile, reformulating over 450 of them HOW DID 2020 START? IS BARILLA BUILDING THE FUTURE? mitted to becoming, by the end of 2020, in the past years. the first company in the consumer goods We immediately reacted to the Covid-19 We are aware that recovery will be sector to achieve/implement gender pay We continued our collaborations at all emergency by setting clear priorities and difficult but we firmly believe in the equality globally. levels of the strategic production and acting quickly. supply chains, involving approximately 9,000 farmers, providing them with fair Our first priority was to guarantee the pay and asking the sector’s experts to maximum safety of our people. help us implement cultivation practices which guarantee a lower impact. We then aimed to guarantee the con- tinuity of operations in all production We have made further progress when it sites, meeting rising demand, in order comes to emissions: today, three of our to provide all of our markets with essen- brands fully offset their CO2 emissions. tial products.

06 07 ABOUT US

GROUP PROFILE 10

VALUES 18 CHAPTER 1 ABOUT US 2020 SUSTAINABILITY REPORT

1.1 EMPLOYEES GROUP PROFILE 8,427 (2018)

8,481 (2019) Barilla is a family business, not listed on of over 8,000 people who work for the the stock market, headed by brothers company and a supply chain that shares PRODUCT CATEGORIES OTHER Guido, Luca and Paolo Barilla. its values and passion for quality. (TURNOVER) BRANDS It was founded by their great grandfather Pietro Barilla, who opened a small shop Today Barilla Group operates in over 0.4% selling pasta e bread in Parma, in 1877. 100 countries through its brands, which BAKERY That moment marked the beginning of have become the icon of excellence in PRODUCTS a story of passion for quality, continuous the food sector, and with 28 production 46.2% PASTA, SAUCES, READY MEALS pursuit of excellent recipes and ability to sites in 9 countries, which every year combine tradition and innovation. contribute to the production of over 53.4% 1,954,000 tonnes of products. When Pietro opened his shop, his main goal was to make “good food”. That prin- ciple is now Barilla’s way of doing busi- In 2019 217 million ness: Good for You, Good for the Planet, in investments TURNOVER GEOGRAPHICAL AREAS that expresses the daily commitment (MILLION EUROS) (TURNOVER) 32.1% REST OF EUROPE LOGO Logo must be applied on backgrounds with solid color and always printed 44.6% 2 COLOR on white print media (supports and materials). The white color could be provided as extra color on special applications AND RUSSIA THE GROUP’S BRANDS VERSION (materials with a no-white background). ITALY

2 Colors P 187C P 871C 3,627

Pantone Pantone 1795 C 295 C 3,483

19% 4.3% AMERICA ASIA, AFRICA, S.P.A. 2018 2019 AUSTRALIA

10 11 CHAPTER 1 ABOUT US 2020 SUSTAINABILITY REPORT

BARILLA UNITED STATES CANADA MEXICO BRAZIL EUROPE ITALY TURKEY ARAB EMIRATES RUSSIA SINGAPORE JAPAN WORLDWIDE 1 1 1 1 2 5 1 1 1 1 1

1 1 1 14 2 1 1 CHINA AUSTRALIA 2 8 10 1 2 1 1 1 1 100 COUNTRIES

16 RUSSIA BRANDS EUROPE

CANADA 4 JAPAN TURKEY CONTINENTS UNITED STATES ARAB EMIRATES CHINA

MEXICO 28 PRODUCTION DISTRICT *including one or more sites SINGAPORE

14 IN ITALY BRAZIL 14 ABROAD AUSTRALIA

ITALY LEGEND

MILLS PLANTS OFFICES RESTAURANTS CUSTOMER COLLABORATION CENTER

12 13 CHAPTER 1 ABOUT US 2020 SUSTAINABILITY REPORT

ITALY REST OF EUROPE AR AND RUSSIA EE ASTILIONE ILIPSTA REONA

PET NOARA RA SOLNE

EA RAA PERINANO RUBBIANO ERA ELLE

ARCHE ASOLI RACE ALTERIE PA SAINT ULBAS OIA TALONT ALENIENNES AUY ACATA ELI

CAPAA REECE ASERTA TIA

SURFACE AREA HOURS WORKED SURFACE AREA HOURS WORKED 2,893,000 sqm 4,488,000 960,000 sqm 3,131,000

BRANDS PRODUCED EMPLOYEES PRODUCTION BRANDS PRODUCED EMPLOYEES PRODUCTION 2,869 1,042,000 t. 2,109 324,000 t. GREENHOUSE GAS EMISSIONS GREENHOUSE GAS EMISSIONS Scope 1 113,638 t.CO eq Scope 1 24,475 t.CO eq Barilla 2 2 Voiello Scope 2 117,215 t.CO eq Barilla Scope 2 22,156 t.CO eq Mulino Bianco 2 Mulino Bianco 2 CO emissions per tonne CO emissions per tonne Pavesi 2 0.22 t. Harrys 2 0.14 t. Gran Cereale of finished product Misko of finished product Pan di Stelle WATER CONSUMPTION Wasa WATER CONSUMPTION Wasa Water withdrawals 1,820,010 m3 Water withdrawals 341,643 m3 Water withdrawals per Water withdrawals per 1.75 m3/t. 1.05 m3/t. tonne of finished product tonne of finished product

14 15 CHAPTER 1 ABOUT US 2020 SUSTAINABILITY REPORT

AMERICA AAA

TE TATE TRE AES BOLU AON

EC SAN LUIS

SURFACE AREA HOURS WORKED SURFACE AREA HOURS WORKED 757,000 sqm 1,324 140,000 sqm 398

BRANDS PRODUCED EMPLOYEES PRODUCTION BRANDS PRODUCED EMPLOYEES PRODUCTION 618 331,000 t. 133 92,000 t. GREENHOUSE GAS EMISSIONS GREENHOUSE GAS EMISSIONS

Scope 1 36,256 t.CO2eq Scope 1 7,304 t.CO2eq Scope 2 49,347 t.CO eq Scope 2 12,258 t.CO eq Barilla 2 2 Barilla Vesta CO emissions per tonne CO emissions per tonne 2 0.26 t. Filiz 2 0.21 t. Yemina of finished product of finished product WATER CONSUMPTION WATER CONSUMPTION Water withdrawals 256,058 m3 Water withdrawals 77,023 m3 Water withdrawals per Water withdrawals per 0.77 m3/t. 0.78 m3/t. tonne of finished product tonne of finished product

16 17 CHAPTER 1 ABOUT US 2020 SUSTAINABILITY REPORT

1.2 VALUES

The activities of all the Group’s people are inspired by five values, underlying their daily choices and actions.

PASSION Putting heart and soul into the excellence of our products.

COURAGE Overcoming challenges to move forward.

INTELLECTUAL CURIOSITY Listening humbly to find innovative solutions.

TRUST Working together towards a common future.

INTEGRITY Being transparent in respect to people and the Planet.

18 19 GOVERNANCE

BUSINESS MODEL 22

CODE OF ETHICS 26

FIGHTING CORRUPTION 27

RISK MANAGEMENT 30 CHAPTER 2 GOVERNANCE 2020 SUSTAINABILITY REPORT

2.1 BUSINESS MODEL

The Barilla Group’s administration and financial years, monitor compliance with control system adopts a conventional the law, with the Articles of Association model and includes: as well as with the principles of proper • the BOARD OF DIRECTORS, com- administration; posed of eight members – four execu- tive and four non-executive ones. In per- • the SHAREHOLDERS’ MEETING is forming its duties, the Board deals with responsible for appointing the Members the ordinary and extraordinary manage- of the Board of Directors and of the ment of the company and defines strate- Board of Auditors as well as approving gy-related guidelines, assesses the suita- the Financial Statements. At the helm bility of the organisational, administrative of the company, the Chairman and and accounting structure and performs Vice-chairmen guarantee that the an overall assessment of operations; Group’s sustainability Mission is under- stood, implemented and in line with • the BOARD OF AUDITORS, composed the values that guide the company’s of five auditors appointed for three operations.

COMPOSITION OF THE BOARD OF DIRECTORS, IN TERMS OF GENDER

MEN 87% WOMEN 13%

22 23 CHAPTER 2 GOVERNANCE 2020 SUSTAINABILITY REPORT

THE GOVERNANCE OF SUSTAINABILITY

At the helm of the company, the Chair- consistency with the established ob- Officer; Chief Research, Development decisions made by the Board. The GYGP man and Vice-chairmen guarantee that jectives, assessing progress. The iden- and Quality Officer; Chief Supply Chain Task Force meets on a regular basis to the Group’s sustainability Mission is under- tification of strategies, guidelines, the Officer and Chief Communication and share the various projects and the efforts stood, implemented and in line with the identification of projects for sustainable External Relations Officer) and is led by made by each position and consists of values that guide the company’s activities. development and monitoring of specif- the Chief Marketing Officer, supported experts in the following departments: The Management Committee, comprised ic sustainability risks is led by a specific by the Global Equity and Communica- Communication and External Relations; of the Chief Executive Officer and the Good for You, Good for the Planet Board tion unit (Global Marketing Department). Marketing; Supply Chain; Research, Directors that report to him, defines the (GYGP Board). The Board is comprised A specific GYGP Task Force is in charge Development and Quality; and Legal. development strategies and ascertains of four C-Executives (Chief Marketing of helping the Group implement the The Task Force is led by Marketing.

GOVERNANCE

CHARA CECHARE A CE

P AR

AT ACA RACEC CTRA CPERC T TT PAAR RAT Chief Chief Supply Chief Marketing Communication Chief Research

Chain O cer O cer & External Development

Relations O cer & Quality O cer

A ET A CCAT

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2.2 2.3 CODE OF ETHICS FIGHTING CORRUPTION

The Code of Ethics guides the work and thanks to the constant improvement of In order to prevent any form of corrup- to the identification and management decisions of the company and everyone the efficiency and effectiveness of the tion, either active or passive, the Group of any episodes of fraud; acting on its behalf. Intended for all stake- compliance systems in place in the vari- is committed to implementing all meas- holders, the Code describes the rules of ous Barilla companies around the world. ures necessary to prevent and avoid epi- • the RECEIVING/OFFERING GIFTS AND conduct aimed at supporting sustainable sodes of corruption and bribery, in com- ENTERTAINMENT CORPORATE POLICY, growth and protecting the company’s In order to allow abnormal conduct and pliance with the national laws in force. includes two documents that define spe- reputation. Furthermore, the Code is an alleged or actual breaches of the Code In particular, integrating the governance cific guidelines for the management of integral part of the Organisation, Manage- of Ethics or of the regulations in force to tools adopted for the identification, pre- gifts given and received by those who ment and Control Model implemented be reported, Barilla has set up a Group- vention and control of the risks linked to work on behalf of Barilla, establishing by the Group, pursuant to It. Legislative wide whistleblowing system that all em- corruption, such as Organisational Mod- a maximum value, above which it is not Decree 231/2001. ployees have access to. Through a ded- el 231 and the Code of Ethics, Barilla also allowed to give or receive gifts; icated e-mail address, the Group is able issued the Anticorruption Policy which Compliance with and adhesion to the to accurately manage and confirm any establishes clear guidelines on conduct, • the NOT FOR PROFIT AND CHARI- principles of the Code of Ethics are pro- breaches, take appropriate actions and aimed at all Barilla people employed in TABLE CONTRIBUTIONS CORPORATE moted through specific Barilla people at the same time guarantee the anonym- activities at risk of committing this crime. POLICY, which contains the require- training plans, activities to raise aware- ity of the sender. The Group has also put To support this policy, Barilla has also ments that the nonprofit and charity ness of the values and ethical regulations in place a digital whistleblowing platform implemented in its purchasing process- organisations must meet in order to re- and through appropriate communica- to provide all stakeholders with a tool es an IT tool in its processes that allows ceive products and donations from Ba- tion activities. Compliance with the Code to bring to the Ethics and Compliance the Group to identify suppliers who have rilla and its employees. Any initiative re- of Ethics and the Organisation Model is Committee’s attention any breaches or been involved in episodes of corruption quiring a donation over € 10,000 must be guaranteed by the Barilla Group’s Super- non ethical conduct. in the past. notified for approval to the relevant con- visory Body, a collegial body consisting of In this connection, over the course of tact people of the Human Resources and two members from within the Group and 2019, the Group received four reports: In addition to the anticorruption policy, Communications and External Relations an external one, appointed to guarantee three for cases of non-ethical conduct Barilla has also issued: departments. the autonomy, independence, profession- – one of which was closed following an alism and continuity of the Body’s action. investigation that found that the report • the ANTIFRAUD POLICY, aimed at In order to manage the potential risks or The Group also established the Ethics and was unsubstantiated, one case led to strengthening knowledge and aware- cases of corruption, the Whistleblowing Compliance Committee in 2018, with specific corrective actions and one case ness of the risk of fraud and strength- Policy was introduced in 2019, available to the objective of strengthening the culture is still pending ascertainment and the ening the internal management and all personnel on the company’s intranet. of ethics and corporate compliance and definition of potential corrective actions prevention control system. The docu- Potential risks or cases of corruption may assuring a consistent compliance man- – and one relating to a possible case of ment defines the roles and responsibil- be reported through the dedicated email agement model throughout the Group, fraud, still under investigation. ities of each company role in relation address: [email protected]

26 27 CHAPTER 2 GOVERNANCE 2020 SUSTAINABILITY REPORT

THE ASSESSMENT OF PROCESSES or the new on-line whistleblowing portal. address, managed by the Group’s Data The operational methods and instructions Protection Officer for queries on the Eu- AT RISK OF CORRUPTION on using the reporting channels are provid- ropean regulation on personal data pro- ed by a specific company policy available tection ([email protected]). Additionally, to all personnel on the company’s intranet. the Group has set up an email address The channels and connected activities are for each Company based in Europe in In Italy, within the mapping activi- The analysis concerned the following under the responsibility of the Group Eth- order to efficiently manage requests by ty of risks connected to It. Legislative processes at risk: ics and Compliance Committee. the data subjects. Decree 231, Barilla has assessed: The reports are managed in such a way Over the course of 2019 the Group filed • liaising activities with the Public as to guarantee the utmost confidentiali- one report about a possible case of cor- • 29 company processes, approximately Administration; ty, thereby protecting against every form ruption between private subjects, which 83% of the total of mapped processes, of retaliation. To assure further protection, is still being investigated. There are no re- as most exposed to the potential risk • raw materials procurement processes; reports can be made anonymously. ported cases linked to episodes of corrup- of corruption towards the Public Pursuant to Law 2016-1691 Sapin II, the tion towards the Public Administration. Administration; • product sales processes; Group has provided an additional email An additional prevention measure against address for French company Barilla the risk of committing the crime of • 26 company processes, approximate- • personnel selection and recruitment France S.a.s. ([email protected]). corruption is represented by person- ly 74% of the total of mapped processes, activities. Pursuant to EU Regulation 2016/679, nel awareness and training activities on as most exposed to the potential risk the Group has set up a specific email this topic. of corruption between private subjects.

28 29 CHAPTER 2 GOVERNANCE 2020 SUSTAINABILITY REPORT

2.4 RISK MANAGEMENT

Barilla adopts an integrated risk man- assessment activity, where the risks are agement model (Enterprise Risk Manage- identified, assessed and classified by ment, ERM) with the objective of guar- priority. Following the assessment, the anteeing all-round mapping of the risks Group also establishes the action plan that the company is exposed to, measur- for managing risks and relevant monitor- ing them and classifying them with com- ing activities. mon metrics aimed at their prioritisation and ensuring that they are managed The model also involves associating and monitored, with results shared with a risk owner to each company area top management. where a risk was identified, who will be Barilla’s Board of Directors plays an ac- tasked with the supervision and manage- tive role in the correct implementation of ment of the risk. The identified risks are this model. In fact, it is directly involved in entered into a specific database, the Risk the definition of the risk governance sys- Register, which is constantly updated. tem, in the identification and validation of the main risks that Barilla is exposed The results of ERM activities are also to, and in the definition and validation of periodically brought to the attention the action plans to manage, contain and of the Board of Directors who, at least minimise the mapped risks. annually, assess the company’s level of The implemented integrated risk man- exposure to the risks, approve the action agement system consists of two essen- plans for risk management and, if nec- tial elements: essary, ask for improvement activities of ERM processes. • the RISK GOVERNANCE MODEL defines the roles and responsibilities required for assuring the correct identi- fication and management of the main risks, potential threats to achieving busi- ness objectives;

• the RISK MANAGEMENT PROCESS involves performing an annual risk

30 31 CHAPTER 2 GOVERNANCE 2020 SUSTAINABILITY REPORT

THE ENTERPRISE RISK MANAGEMENT PROJECT performs periodic audits on various With a view to mitigating the risks con- company processes. Lastly, any incident nected to climate change, over the of alleged or actual fraud and/or corrup- years the Group has activated a number During 2017 Barilla started a three-year In particular, the analysis conducted led tion can be reported through the whis- of initiatives to promote less impactful project aimed at perfecting the com- to the identification of potential risks tleblowing system. farming, actively collaborating with uni- pany’s risk management system, start- linked to the Group’s Mission “Good versities and research centres to devel- ing with a revision of the risk governance for You, Good for the Planet”, in the fol- ENVIRONMENTAL RISKS op new agricultural techniques that are model and the risk assessment methods. lowing areas: corruption and fraud, envi- able to protect the natural environment. This project entailed a risk analysis ac- ronment, personnel management, prod- Barilla periodically monitors the risks con- Also in 2019, an analysis was carried out of tivity, involving the company’s top man- ucts, supplier management. nected to its production activities that may the long term impact of climate change agement, aimed at identifying the main generate a negative impact on the envi- on the procurement of durum wheat. financial and non-financial risks with po- RISKS CONNECTED TO CORRUPTION ronment, with a special focus on: direct tential impacts on the business. AND FRAUD and indirect greenhouse gas emissions; RISKS CONNECTED the use of water resources in production TO PERSONNEL MANAGEMENT The activities continued throughout The Group constantly monitors the processes; the use of non-renewable raw 2019 as well, and mainly concerned: risks connected to crimes of corruption materials, in particular plastic, in product The main identified risks concern the and fraud, maintaining a zero tolerance packaging; and the production of waste, challenge of attracting and retaining tal- • further integration between risk man- approach to non ethical attitudes and particularly from food production waste ents; the loss of people in important po- agement and strategic decision-mak- breaches of the regulations in force in and product packaging. With a view to sitions in the organisation; the protection ing processes, also taking into consid- these areas. the above, in 2019, the environmen- of the health and safety of people in the eration scenarios beyond the planning tal impact of products was monitored workplace; the issues linked to diversity horizon; In order to mitigate any risks of corrup- throughout their life cycle; a growing and inclusion. tion, Barilla has issued its own Anticor- number of farmers was supported in the • performing the annual risk assess- ruption Policy and actively urges every- implementation of less impactful farm- With reference to recruitment and re- ment campaign aimed at updating the one working for the Group to uphold ing practices, also thanks to the introduc- taining of talents, the Group imple- Group’s risk profile (including ESG risks) and adhere to the standards of conduct tion of The Mulino Bianco Charter and mented new career development plans, with the direct involvement of top man- defined in the Code of Ethics based The Harrys Charter. carried out surveys on employee satis- agement; on the principles of transparency and faction and promoted employer brand- honesty. Also, the Antifraud Policy (ap- Lastly, Wasa, Gran Cereale and Harrys ing initiatives. • further integration of the risk man- plicable to employees as well as to third (beginning of 2020), have become 100% agement and sustainability processes in parties) has the aim of strengthening CO2 compensated brands. As regards health and safety in the light of the relevance of ESG risks in the in-company awareness and knowledge workplace, Barilla is committed to the short and long term; of the risk of fraud, as well as improving What is more, recent years have seen constant reduction of accidents in pro- the internal control system for preven- a growth in the weightiness of the risks duction processes as well as during • conducting scenario analyses for tion and identification thereof. connected to climate change that have employee business trips. This commit- specific risks identified as significant for direct negative repercussions on the pro- ment led to initiatives to define an inter- the Group in 2019 (which include the As additional protection against these curement of raw materials in terms of national support system for mobility, to climate change risk). risks, the Internal Audit department quantity and quality. the certification of production facilities

32 33 CHAPTER 2 GOVERNANCE 2020 SUSTAINABILITY REPORT

according to standard OHSAS 18001 This department is in charge of iden- the sustainability criteria required by the risk categories associated to the main raw and to the definition and implementa- tifying and assessing product quality Group and the occurrence of food fraud materials, especially eggs, milk, olive oil, tion of systems for maintaining the zero and safety risks, considering both ex- committed by third parties. butter and organic products. The Group – accident plan. In this connection, the isting and emerging risks. Barilla con- has also drawn up a Sustainable Agricul- ISO 45001 certification was also obtained stantly monitors the quality and safety In this area, the Group carries out regu- ture Code that lays down a set of princi- in 2019. of its products through collaboration lar risk assessment campaigns to identi- ples aimed at spreading and guaranteeing activities with universities, analyses and fy and monitor the most critical product sustainable farming practices. Lastly, on the topic of Diversity and In- assessment of potential associated risks, clusion, the following main measures specific training courses (for example to have been adopted in recent years: train- prevent infestations), as well as the place- ing sessions for company resources; ment of X ray equipment to prevent the the adoption of the UN corporate Code presence of foreign bodies. of Conduct against LGBTQ+ discrim- ination in the workplace; the Code of Furthermore, Barilla has identified addi- Ethics; the launch of a marketing and tional risks connected to nutrition and communication campaign on the top- the nutritional profile of its recipes. ics of diversity; smartworking; the win- In fact, a significant change in consumer parenting project; and reach the gender choices has taken place over the years, pay equality. as people care increasingly more about the quality of the products, especial- PRODUCT-RELATED RISKS ly the characteristics and ingredients of food. In order to manage and mitigate The main risks identified by Barilla in re- these risks, the Group provides con- lation to products concern quality and sumers with complete and transparent safety. In this area, potential criticalities nutritional information on its products. arise from the constant changes in the Also, it has defined specific improvement regulatory framework and subsequent objectives of the nutritional profile of its occurrence of cases of non-conformi- food products, monitoring the progress ties, as well as from responsibilities ei- through clearly-defined KPI. ther within the company or by suppli- ers and co-packers. RISKS CONNECTED The potential impact on consumer TO SUPPLIER MANAGEMENT health and safety, stemming from any non-conformities to the regulations and The main risks connected to the man- quality standards of the products, has agement of suppliers stem from the led the Group to setting up the Global unavailability of raw materials in terms Quality, Food Safety and Techregulatory of quantity and/or quality, to poten- department. tial episodes of non-compliance with

34 35 HOW WE RESPOND TO GLOBAL CHALLENGES

INTERNATIONAL SCENARIO 38

CONSUMER GOODS SECTOR 41

BCFN FOUNDATION 45

OUR CONTRIBUTION TO THE 2030 AGENDA 52

MATERIALITY ANALYSIS 54

STAKEHOLDERS’ ENGAGEMENT 62

Image of the Interactive Event "We, Food, our Planet: Food & Cities. How to feed an increasingly urbanized world", exhibition organized BCFN Foundation during the celebrations for Parma 2020, the Italian capital of culture. CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

3.1

INTERNATIONAL SCENARIO DIE OF HUNGER OR OBESITY?

The scenario which we deal with on a a global action plan to limit global warm- 821 million 2.1 billion daily basis is very complex and char- ing to well below 2°C. The 2030 Agenda PEOPLE SUFFER PEOPLE ARE OBESE acterised by production, distribution and the Paris Conference Agreements FROM HUNGER OR OVERWEIGHT and consumption systems that are not are the benchmark for achieving the always sustainable. In order to reverse desired paradigm shift. Among the chal- this course, in 2015 the United Nations lenges that the international communi- introduced the Sustainable Develop- ty has set itself, there are many linked ment Goals, as part of the 2030 Agenda, to the current food models. FEED PEOPLE, designed to contribute to global devel- ANIMALS OR CARS? opment by promoting and preserving These challenges placed the topic of the wellbeing of people, animals and food at the center of discussions on glob- of the Planet. al sustainable growth, highlighting the 47% 40% In the same year, the first universal need to radically rethink these models. OF GLOBAL CROP IS USED Climate Agreement, defined at the Paris In particular, in the food sector, there are PRODUCTION TO PRODUCE Conference (COP21), which established many urgent challenges to face. IS USED FOR ANIMAL FEED HUMAN NUTRITION OR BIOFUEL

FEED WASTE OR FEED THE HUNGRY?

1.3 billion 4 times TONS OF WHAT IT WOULD TAKE PERFECTLY TO FEED 821 MILLION EDIBLE FOOD PEOPLE WHO ARE WASTED ARE HUNGRY

Barilla Center for Food and Nutrition Foundation

38 39 CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

3.2 HUNGER AND OBESITY That is why, on the one hand, there is a need to develop policies that promote CONSUMER GOODS SECTOR Access to food and the wrong nutri- sustainable forms of agriculture and pro- tional habits have created a great im- duction, and re-balance the proportion balance: on the one hand, 821 million between land for biofuel or feed and land people are malnourished (one in nine), for the production of food; on the other while, on the other, 2.1 billion people hand, one needs to look very closely at Barilla operates in a sector characterised development of more responsible pro- (three in ten) are obese or overweight. the raw material production and supply by the presence and active involvement curement practices, from an environ- chains, guaranteeing fair remuneration of an increasing number of consumer mental and social standpoint, and to the The phenomenon of obesity contin- to all players involved. and trade associations committed to the promotion of healthy lifestyles. ues to grow internationally, affecting increasing numbers of people in vari- FOOD WASTE ous geographical areas, such as North THE CONSUMER GOODS FORUM America, Europe and low-income Every year around one-third of world countries. This phenomenon sheds light food production, equal to about 1.3 on the need to guarantee equal access billion tonnes, is wasted. This number is Among the various associations operat- The network is led by a Management to food and, at the same time, promote even more shocking if we consider that ing in the consumer goods sector, a key Board that includes the CEOs of 57 pro- the importance of adopting a balanced it is four times the quantity required role is played by The Consumer Goods ducers, retailers and service providers, diet and a healthy lifestyle. to feed the 821 million people who Forum (CGF), an international organ- including the Chairman Guido Barilla*. are malnourished. isations of concerns operating in the PEOPLE, ANIMALS OR CARS? consumer goods sector. The network focuses its activities on the Waste affects all stages of the chain, as following areas: plastic; food waste; Despite the increase in levels of malnutri- well as consumption itself: it is, in part, It brings together consumer product re- human rights and the rights of work- tion, one-third of grain crops are used to due to incorrect production and distribu- tailers and producers, and other key stake- ers; food safety; healthy lifestyles; produce animal feed and biofuels, and tion methods implemented by the food holders, to guarantee consumer trust, en- production and supply chains; protec- demand is only expected to increase. industry and the catering sector, and, in courage positive change and help handle tion of forests. part, it may be attributed to bad individ- the key challenges that affect the sector, To this we must add the need for water: ual habits. among which environmental and so- while 4,000 children die each day due cial sustainability, health, food safety and to the inability to access drinking water, Lastly, increasingly radical climate product data accuracy. 15,000 litres of water are required to pro- change, greenhouse gas emissions and Its membership includes around 400 duce one kilo of beef. the indiscriminate exploitation of natu- retailers, producers, service provid- ral resources have a significant negative ers and other stakeholders from over This is all compounded by financial spec- impact. It suffices to consider that, each 70 countries, involving around 10 mil- ulation: the raw materials used in the food year, we consume the resources of 1.7 lion workers, plus another 90 million production chain are often influenced by planets; this means that, unless we im- if we include the entire supply chain. the financial markets, causing deviations mediately change our lifestyle, by 2050 from the real costs of production. we will need the resources of 3 planets. * (Claudio Colzani, CEO, will be part of the network from June 2020).

40 41 CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

OTHER COLLABORATIONS • University of Tulln-Vienna diabetes and cardiovascular and arterioscle- • University of Wageningen rotic diseases in post-menopausal women; • University of Cranfield Barilla Group entertains important rela- the supply chain players for the adop- • Harper Adams University • measurement of glycaemic response tionships and a constant dialogue with tion of best agronomic practices, Ba- • University of Prague to low glycaemic index products in Asia; various industry associations, among rilla has been collaborating for years • Queen’s University Belfast which: with various universities and research • VTT Technical Research Centre • study of the metabolic effects in healthy centres around the world, including: of Finland subjects associated with the consumption • AIM – European Brands Association • Singapore Institute for Clinical Sciences of bread produced with high amylose • CAOBISCO – Chocolate, Biscuits • HORTA • Rhode Island Hospital wheat; and Confectionery of Europe • Catholic University of Piacenza • Centromarca – Italian Association • University of Thessaly Various studies and research projects • evaluation of the effectiveness of pas- of Brands Industry • Konya Bahri Dağdaş International have sprung from these collaborations, ta and other carbohydrate-containing • ECR – Efficient Consumer Response Agricultural Research Institute the main ones being: foods with a low glycaemic response on • IBC – Industrie beni consumo • University of North Dakota reducing the post-prandial insulin and (Consumer Goods Industries) • University UC Davis • in vitro and in vivo evaluation of the glycaemic response, on improving the • IPO – International Pasta Organization • University of Parma glycaemic response to pasta and other risk profile associated with cardiovascu- • ITALMOPA – Associazione Mugnai • University of Naples Federico II carbohydrate-rich products; lar diseases, and on promoting people’s d’Italia (Italian Millers Association) • Brown University well-being in the long term; • SEMOULIERS • University of California San Diego • analysis of the sì.mediterraneo pro- • UNAFPA - Union of Organisations • University of Toronto gramme for the promotion of wellbeing • continuous monitoring of glucose as- of Manufacturers of Pasta Products • University of Sao Paulo in the Company; sociated with pasta consumption in rela- of the EU • University of Uppsala tion to type 1 diabetes; • UNIONE ITALIANA FOOD – an associ- • Istituto Nazionale di Tumori di Milano • comparison between different carbohy- ation resulting from the merger (National Cancer Institute, Milan) drate-rich foods and the estimated effects • weight of rye: effects of a diet rich in between AIDEPI and AIIPA • Parma Hospital of their replacement on the risk of type 2 rye on body weight control. • Chalmers University of Gothenburg Barilla also believes it is important to • Purdue University (Indiana-US) take an active part in a number of na- • Harvard University (US) tional and international initiatives, many • State University of Milan of which are long-standing. • The German Federal Institute for Risk Assessment (BfR) In order to promote the joint develop- • ENEA ment of scientific research projects to • CNR (Italian Research Council) improve knowledge of nutrition and • International Association for Cereal product quality and safety, as well as Science and Technology (ICC) to foster the transfer of skills and kno- • Consejo Superior de Investigaciones whow between the academic world and Científicas - CSIC - Spain

42 43 CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

3.3 BCFN FOUNDATION

2009 saw the establishment of the Baril- Scientific studies, as well as the re- la Center for Food and Nutrition Foun- marks of the Foundation, are a daily dation (BCFN), a think tank inside Barilla source of inspiration for the activities of Group whose objective is to study and Barilla managers, guiding them in their understand the complexity of agri-food daily choices. systems and promote an open dialogue between scientists, institutions, the pri- The Foundation’s International Forum vate sector, the civil society and commu- on Food and Nutrition is the yearly event nities, at national and international level. for sharing experiences, good practic- In 2014, BCFN became a Foundation. es and commitments for achieving the Sustainable Development Goals. Thanks to its research and dissemination activities, the BCFN Foundation cre- In 2019, the Forum celebrated 10 years ates values for all of society, inspiring and endeavoured to turn the debate on conscious daily nutritional choices and food and environmental sustainability promoting solutions and good practic- into a very concrete plan. The event was es for the sustainability of global agri- organised in collaboration with World food systems. Food Programme Italia, National Geo- graphic Italia, United Nations Sustainable Among the scientific material that has Development Solutions Network (UN been produced, the Double Pyramid SDSN), Center for European Policy Stud- model highlights the very close link be- ies (CEPS), Columbia Center on Sustain- tween two aspects of every type of food: able Investment (CCSI), Santa Chiara the nutritional value and the environ- Lab-University of Siena (SCL) and Global mental impact. Alliance for the Future of Food (GAFF) and highlighted the need for inviting In fact, foods with the lowest environ- institutions, organisations, researchers mental impact are also those recom- and citizens to act and pursue sustaina- mended by nutritionists for our health, ble development together, starting with while those with a high environmental food. It launched #ActionForChange, footprint should be consumed in mod- a global appeal to make sustainability eration due to their effects on health. a priority in the development agenda.

44 45 PIRAMIDE AMBIENTALE

BASSO A LTO Dolci Carne bovina Carne bovina

Pesce Formaggio CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES Formaggio 2020 SUSTAINABILITY REPORT Uova Carne avicola Pesce Carne suina Biscotti ENvIRONMENTal PYRaMID Olio Carne avicola

LOW HIGH • WE, FOOD, OUR PLANET: the free Studies (CEPS), sheds light on the posi- Sweets Frutta secca Beef Legumi Beef digital education programme set up tive role played by the application of dig- Uova by the Barilla Foundation, in a Memo- ital technologies in the transformation of Latte Fish Cheese Cheese Yogurt Eggs Poultry randum of Understanding with the Min- agrifood production and supply chains, Fish Pork Cookies Dolci Olive Oil CONSUMO SUGGERITO IMPATTO AMBIENTALE istry of Education, to offer teachers, at which results into increased crop yields Yogurt Poultry Olio Pasta Dried Fruit all levels, training, updates and teaching and reduced food waste. Frutta secca Legumes Biscotti Eggs Pane, Pasta, Milk Riso tools that allow them to transfer scientif- Yogurt Patate, Riso Latte Legumi Sweets ic knowledge on current topics related In addition, it formulated 10 concrete Pane ENvIRONMENTalYogurt IMPaCT Olive Oil RECOMMENDED CONSUMPTION Pasta Dried Fruit Cookies to food and environmental sustainability recommendations for agri-food policies. Rice Frutta Bread, Pasta, Milk and educate tomorrow’s adults in active Potatoes, Rice Patate Bread Legumes Ortaggi Frutta citizenship and responsibility. Ortaggi Potatoes Fruit Fruit Vegetables Vegetables A LTO BASSO HIGH LOW • DIGITISING AGRIFOOD – PATHS AND

PIRAMIDE ALIMENTARE FOOD PYRaMID FONDAZIONEBCFN BCFN FOuND at©ION 2015 © 2015 CHALLENGES: the study, carried out by the Barilla Foundation in collaboration find out more on: with the Centre for European Policy Barilla Center for Food and Nutrition In 2019, the Forum once more provided fundamental dimensions: sustainable the opportunity to highlight and reward production and nutrition models, sus- the most significant research projects: tainable processes and supply chains, and corporate citizenship. • FIXING THE BUSINESS OF FOOD: the Barilla Foundation together with the • SU-EATABLE LIFE: this three-year UN SDSN, the Columbia Center on Sus- project, funded by the European Com- tainable Investment (CCSI) and the San- mission, created by the Barilla Founda- ta Chiara Lab – University of Siena (SCL), tion together with the Sustainable Res- promoted a series of recommendations taurant Association, GreenApes and the and concrete actions aiming to acceler- University of Wageningen, relates to ate progress towards the sustainable de- a series of activities in university and velopment of the agri-food sector. company canteens in Italy and in the United Kingdom, with the aim to pro- The study Fixing the Business of Food: mote the adoption of a correct and The Food Industry and the SDG Chal- sustainable diet in Europe. The goal is lenge, presented in New York during the to prove that the adoption of this type 74th General Assembly of the United Na- of diet is beneficial to both people and tions, highlights the pivotal role played the Planet (with estimated savings of

by the agri-food sector in achieving the approximately 5,300 tonnes of CO2 eq SDGs and the need to focus the prac- and of approximately 2 million cubic tices of agri-food business around four metres of water).

46 47 CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

OUR MISSION: Three of our brands have achieved WASA our crispbread brand, continued GOOD FOR YOU, GOOD FOR THE PLANET the goal of total compensation of CO2 the effort undertaken in 2018 to main-

emissions. tain total CO2 emission offset.

Throughout the years, we have defined To this end, we continue to work on of- Lastly, we have continued to collaborate MULINO BIANCO launched La Carta del a journey, summed up in our Good for fering people products with a better nu- with the players of our strategic supply Mulino a charter for more responsible You, Good for the Planet Mission, which tritional profile, based on the Mediterra- chains to develop and promote the use farming and the first products made with drives us each day to offer good and nu- nean Diet model. of more sustainable farming practices. 100% sustainable common wheat flour. tritionally balanced food to the world, which is sourced from responsible sup- Since 2010, we have reformulated 455 All Barilla Group brands contribute to HARRYS our brand of bread and bakery ply chains, inspired by the Italian lifestyle products, reducing the salt, sugar, fat or the Good for You, Good for the Planet products in France, has strengthened its and the Mediterranean Diet. saturated fat content. We have gradu- journey, through projects aimed at im- commitment to making the common ally expanded our range, increasing the proving the nutritional profile of prod- wheat supply chain more sustainable and,

• GOOD FOOD means quality, flavour, a number of products that are rich in fi- ucts in order to reinforce the sustain- in early 2020, fully offset CO2 emissions. culinary experience, accessibility, pleas- bre or made from legumes, or increasing ability of the production and supply ure and conviviality; the number of products with no added chains and provide transparent com- PAN DI STELLE continued its engagement sugar. We have worked to disseminate munication to consumers. with the Cocoa Horizons Foundation to • HEALTHY FOOD means selected raw the importance of the Mediterranean improve the quality of life of those farmers materials and balanced nutritionally bal- Diet, through global food education pro- To this end: in the cocoa plantations, in Ivory Coast. anced profiles to support healthy lifestyle jects for children and young people, and choices; by launching a brand project in Germany BARILLA has strengthened its commit- GRAN CEREALE made a commitment aimed at university students. Lastly, we ment to spread nutritionally balanced in favour of the environment, fully offset-

• FOOD SOURCED FROM RESPON- upheld our commitment to provide peo- food models and has continued its com- ting CO2 emissions and funding a special SIBLE SUPPLY CHAIN means seeking ple with the tools to make conscious and mitment to enhance the Italian agricul- project for the protection of wooded the best ingredients to guarantee quality, responsible food choice, while inspiring tural supply chain. areas in Italy. while respecting people, animals and the them to adopt a healthy lifestyle. environment. From an environmental point of view, we It is a Mission we continue to pursue by have stepped up our efforts to reduce implementing projects that touch on the impact of our products along the all stages of the production and supply supply chain. Since 2010, we have been chain, from field to fork. working to reduce water consumption These projects are thanks to the de- in our production processes, achieving termination of all Barilla people, to the a 21% reduction, and to cut CO2 emis- collaborations established along the sions, which we have reduced by 30%, production and supply chain and to complying with scientific targets to align the support we receive from external our efforts with the requirements stipu- experts. lated in the Paris Agreements.

48 49 CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

GOOD FOR YOU, GOOD FOR THE PLANET It is a Mission that Barilla pursues from FIELD TO FORK and that has an immediate impact on TASTE in the first few minutes, on ENERGY in the first few hours and on THE WELLBEING OF PEOPLE over the course of many years. It is also founded on respect for the COMMUNITIES in which we live and operate and for the ENVIRONMENT at large.

LOGISTICS PRODUCTION AND SALES RESEARCH AND DEVELOPMENT COMMUNICATION RAW MATERIALS CONSUMPTION

PLANET JOY WELLBEING OF EATING HEALTH NUTRITIONAL AND WELLBEING PROFILE

50 51 CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

3.4 • To date we have implemented projects and initiatives to welcome, OUR CONTRIBUTION include and integrate more than 60 refugees worldwide. • We have supported communities during the Covid-19 emergency, TO THE 2030 AGENDA by donating cash, products, medical supplies and supporting research.

• We have involved more almost 9,000 enterprises in sustainable • Since 2010, we have reformulated the recipes of 455 products, farming projects concerning our main raw materials. 35 reformulated in 2019, by reducing the fat, saturated fat, salt and • In Italy, we signed a Memorandum of Understanding with the sugar content or increasing fibre. Ministry of Agricultural, Food and Forestry Policies (MIPAAF) • In 2019, we launched 22 new products with no added sugar, rich in to promote the quality and sustainability of Italian durum wheat fibre, made with wholegrain or with cereals. production and supply chain. • We have been a zero-palm oil company since 2016. • We developed two charters for the sustainable cultivation of common wheat: La Carta di Harrys (The Harrys Charter) and • We involved approximately 20,000 children in activities dedicated La Carta del Mulino (The Mulino Charter), developed together with to food education, physical exercise and healthy lifestyles. WWF Italy. • We have involved over 60,000 university students in Germany, • Since 2010, we have reduced greenhouse gas emissions by 30% and through the CHOOSE, COOK and SHARE project. water consumption in our plants by 21%, per tonne of finished • Over 7,500 Barilla people were involved in the sì.mediterraneo product. project. • We have adopted Science Based Targets to limit our CO footprint. • We funded the construction of a school for over 300 children, 2 • 99.7% of our packaging is recyclable. in the Ivory Coast. • Three of our brands fully offset their CO2 emissions: Wasa, Gran Cereale and Harrys. • 36% of executives and managers are women. • We started the journey that will lead to gender pay equality • We publicly committed to not testing raw materials and products worldwide in Barilla. on animals, either directly or indirectly. • In 2016, we introduced the Guidelines for Animal Welfare, in • We offset part of our emissions thanks to projects meant collaboration with Compassion in World Farming; these guidelines to promote the development of renewable energy sources are applied to all supplies. in India. • We offset part of our emissions by supportingprojects that protect the rainforests and biodiversity in Brazil. • In Italy, we funded a project aiming to protect forests, together • Throughout the years, we have developed projects to make our with Legambiente and AzzeroCO2. work environment more inclusive, with the aim to protect health and promote a good work/life balance: smartworking and winparenting. • Over the years, we have set up projects and established relationships • We have promoted the establishment and development of 15 ERGs with our stakeholders and key organisations involved in the production (Employee Resource Groups): global groups of employees, centred and supply chain, such as: UNICEF, UNHCR, WWF Italy, Compassion around specific topics of diversity and inclusion. in World Farming, Legambiente, and many more.

52 53 CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

3.5 MATERIALITY ANALYSIS MATERIALITY ANALYSIS

MUST HAVE DISTINCTIVE

In accordance with the requirements of corporate strategy at Group level and, on the GRI Standards, Barilla defined its own the other hand, in the analysis of all topics 5.00 Materiality Matrix to identify strategic considered key by external stakeholders Traceability and Trasparency social and environmental priorities in (players in the food sector, consumer as- Raw materials selected line with its business strategy and the sociations, international networks such as 4.50 Innovation and quality United Nations Sustainable Develop- The Consumer Goods Forum, practices for food safety ment Goals. of companies that, in terms of govern- Excellent recipes for superior flavour ance and size, are comparable to Barilla). 4.00 Wellfare of people and animals The analysis was carried out in 2017, with Perfect nutritional profile the support of KPMG Advisory and con- The following 16 topics emerged from Promotion of healthy life styles and nutritional education Diversity and inclusion sisted, on the one hand, in the analysis of the analysis: 3.50 "Modern" food trends Sustainable agriculture Human rights 3.00 Care of local communities and the local area Recyclability and food waste

2.50 Responsible marketing People and labelling care

2.00

1.50 Sustainable production sites and health and safety

1.00

0.50

0 0 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00

54 55 CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

MATERIAL THEME DEFINITION MATERIAL THEME DEFINITION

Selecting only excellent raw materials, pro- Meeting the new nutritional needs of peo- duced according to the highest quality stand- Selected raw materials "Modern" food trends ple through products that address emerging ards and in compliance with the principles of trends and needs in the food sector. sustainable agriculture promoted by Barilla.

Ensuring product traceability and the develop- Promoting the adoption of sustainable agri- ment of transparent communication projects Traceability and trasparency Sustainable agriculture cultural practices, while respecting people, the to allow consumers to discover and learn environment and local communities. about the products from the field to the table.

Guaranteeing the quality and safety of prod- Respecting the fundamental rights of every Innovation and quality ucts every day, from the control of raw mate- Human rights person to carry out their activities and along for food safety rials, through production and distribution. the entire supply chain.

Limiting the waste of resources at every level Excellent recipes Formulating ever new and surprising recipes, of the agri-food chain by optimising produc- Reciclability and food waste for superior taste able to bring the joy of food to people. tion processes and promoting responsible consumption practices.

Supporting the development and wellbeing of Safeguarding the wellbeing of all the people local communities and promoting access to who work in the supply chains and promot- Care for the local communities Wellbeing of people and animals food and food security, particularly by providing ing practices for the protection of animal and the region aid to populations affected by natural disasters welfare. or economic and social crises. Ensuring the accuracy of the information pro- Developing healthy and balanced products vided on the label in accordance with interna- Responsible marketing and Perfect nutritional profile in terms of nutrition, in line with the princi- tional and national regulations and develop- labelling ples of the Mediterranean Diet. ing responsible marketing principles, applying them to all brand communications

Developing the value of each person, re- Promoting the development of a work envi- specting their physical, cultural and moral Diversity and inclusion People Care ronment that respects the balance between integrity as well as the right to interact and private and professional life. associate with others.

Creating state-of-the-art production sites, Promoting the spread of sustainable and Promotion of healthy lifestyles Sustainable production sites with a lower environmental impact and as- balanced lifestyles and proper nutrition, and nutritional education and health and safety suring the health and safety of the people especially among young people. who work there.

56 57 CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

THE SDGs AND BARILLA Barilla has decided to follow the As a first step, Barilla highlighted the link 2030 Agenda, promoting the sustain- that exists between the priority top- able development guidelines on all ics identified through the materiality 17 Goals and endeavouring to guar- analysis and their impact on the Global antee its own concrete contribution. Agenda.

Selected raw materials

Traceability and trasparency

Innovation and quality for food safety

Excellent recipes for superior taste

Wellbeing of people and animals

Perfect nutritional profile

Diversity and inclusion

Promotion of healthy lifestyles and nutritional education

“Modern” food trends

Sustainable agriculture

Human rights

Recyclability and food waste

Care for the local communities and the region

Responsible marketing and labelling

People Care

Sustainable production sites and health and safety

58 59 CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

OUR 2030 AGENDA Barilla has set concrete goals for the coming years to concretely contribute to the UNITED NATIONS’ GLOBAL AGENDA 2030 and the SUSTAINABLE DEVELOPMENT GOALS (SDGs). With a view to continuous improvement, IN 2020 WE STARTED REDEFINING OUR GOALS.

GOOD FOR YOU GOOD FOR THE PLANET

AREA GOAL 2019 AREA GOAL 2019

SELECTED RAW By 2030, 100% of RAW MATERIALS SUPPLIERS to be 82% AGRICOLTURA By 2020 responsibly purchase of 100% STRATEGIC 53% MATERIALS certified to an international food safety standard recognized SOSTENIBILE RAW MATERIALS, in line with the BARILLA CODE OF by the Global Food Safety Initiative (GFSI). SUSTAINABLE AGRICULTURE.

Of which: Durum Wheat 49% Semolina 58% SAFE By 2020, 100% of BARILLA PLANTS TO BE CERTIFIED 100% Tomato 98% PRODUCTS to the international food safety standard FSCC 22000. Cocoa 94% Sunflower oil 97% Flour 48%

SUSTAINABLE By 2020, reduce CO2 EMISSIONS per tonne of product -30% PRODUCTION by 30% compared with 2010.

By 2020, reduce WATER CONSUMPTION per tonne -21% of product by 30% compared with 2010.

IMPROVED By 2020, 90% OF THE TOTAL VOLUME OF PRODUCTS 86% RECYCLABILITY By 2020, ensure that 100% OF PACKAGING is responsibly 99.7% to be in line with BARILLA NUTRITIONAL GUIDELINES. NUTRITIONAL AND WASTE purchased, in line with the BARILLA GLOBAL PACKAGING POLICY. PROFILES By 2030, ensure that 85% of BAKERY PRODUCTS sold 70% in single portions contain no more than 150 Kcal. By 2020, achieve the TARGET of ZERO WASTE TO <10% LANDFILL at our plants. By 2030, ensure that “better for you” products, such as wholegrain, high-fiber and high-protein items, account 14.4% for at least 30% of BARILLA TOTAL VOLUMES. ANIMAL By 2020, purchase 100% of eggs and meat with high Eggs 100% AND SOCIAL levels of animal welfare. Meat 100% WELFARE Reach level 2 of the Business Benchmark on Farm Animal Level 3 Welfare (BBFAW).

By 2020, at least 10,000 FARMERS involved in the Barilla Almost 9,000 Sustainable Agriculture Program.

60 61 CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

3.6 For many years, Barilla has maintained multifariousness and heterogeneity of STAKEHOLDERS’ ENGAGEMENT an active dialogue with its stakehold- interests. A dialogue that over the years ers, based on the principles of fairness has become a fundamental part of the and collaboration, acknowledging their Group’s growth.

“We believe that we can only fulfil our responsibilities Local authorities and public bodies, schools, citizens and civil through open collaboration with many other players; LOCAL society where Barilla has production facilities and offices or where COMMUNITIES the Group's suppliers are located; beneficiaries of philanthropic we think of ourselves as a company that is ‘open to activities. stakeholders’, and we would like to receive suggestions and Non-governmental organisations involved in dealing with major establish numerous collaborations to improve our journey” NON-PROFIT global crises and emergencies, environmental associations, ORGANIZATIONS associations committed to reducing food waste and supporting the needy. Claudio Colzani, CEO

Parliaments, Ministries and Authorities which at national and NATIONAL AND international level - regulate farming and production activities, monitor food security, public health and environmental INTERNATIONAL GLI STAKEHOLDER protection, promote research and education or manage major INSTITUTIONS global emergencies, including the European Commission, Personnel in all departments and roles, new employees and European Parliament, EFSA, FAO, UNICEF, UNHCR and the UN. BARILLA those close to retirement, people with disabilities, LGBTQ+ PEOPLE staff, trade union representatives and organisations including, at Scientific food and nutrition societies, medical associations, SCIENTIFIC European level, EFFAT, clubs and staff associations. universities, scientific foundations and research centres involved COMMUNITY in the development of more sustainable agri-food systems. SHAREHOLDERS Shareholders who own shares in the Company and entities that AND LENDERS finance the development of the Group through capital loans. Social networks, blogs and websites of digital information, press MEDIA and television at local, national and international level, specialised trade and food sector press. Modern distribution, traditional distribution, new distribution CUSTOMERS channels, commercial and collective catering. Food sector and major brand trade associations, including UNIONFOOD, ITALMOPA, CENTROMARCA, IBC in Italy, and Children, adults, the elderly, people with specific nutritional UNAFPA and IPO, CAOBISCO, SEMOULIERS, AIM, ECR EUROPE internationally; associations of agricultural producers and CONSUMERS needs due to health, religious or ethical-cultural reasons. TRADE inter-professional associations, employers' associations and ASSOCIATIONS organisations that bring together joint-stock companies - in Suppliers of raw materials, particularly agricultural businesses and particular ASSONIME, professional committees, associations consortia, suppliers of packaging, co-packers, suppliers of goods in the logistics and commercial communication sector - in and services required for production (such as utilities, plants, particular UPA. SUPPLIERS maintenance services) and for product distribution (such as sales agents, advertising and communication agencies, media buying Direct competitors in the same industry (pasta, baked goods, sauces), COMPETITORS agencies), professional service providers. direct competitors in the food industry and indirect competitors.

62 63 CHAPTER 3 HOW WE RESPOND TO GLOBAL CHALLENGES 2020 SUSTAINABILITY REPORT

BARILLA INSIEME DAY (BARILLA TOGETHER DAY)

The Barilla Insieme Day (Barilla Together Day) is the annual event organ- ised by the Group, aiming to consolidate constructive dialogue with its stakeholders. After Paris, Chicago and Singapore, the 11th edition of the event was held in Berlin.

It provided the opportunity to representatives from the worlds of business, sci- ence, politics, the non-profit sector and the media to discuss various topics, such as the challenges faced by the agri-food sector and the sector’s impact on the Planet.

Organised in collaboration with ZNU - Center for Sustainable Leadership (Witten-Herdecke University), the event was dedicated to two Group brands,

Wasa and Barilla. The first part of the event was dedicated to the topic of CO2 emissions; on this occasion, the Group presented Wasa’s commitment to pro- gressively reduce emissions and offset those remaining. The second chapter was dedicated to the Mediterranean Diet, a diet whose pos- itive impact on the wellbeing of people has been internationally recognised. It is also characterised by a smaller impact on the environment in terms of green- house gas emissions, water consumption and exploitation of natural resources.

64 65 GOOD FOR YOU

NUTRITION 69

QUALITY AND FOOD SAFETY 77

RESPONSIBLE MARKETING 88

FOOD EDUCATION 89 CHAPTER 4 GOOD FOR YOU 2020 SUSTAINABILITY REPORT

4.1 NUTRITION

Offering people high-quality, safe products that taste Barilla strives to constantly improve the and fibre). Introduced for the first time in good and have a balanced nutritional profile, for daily nutritional profile of existing products 2009, these Guidelines are periodically consumption. and to launch new ones that combine updated based on the instructions de- excellent flavour with safety and that con- fined at national and international level tribute to a balanced diet, inspired by the by: the World Health Organisation (WHO) A commitment that is expressed in two directions: Double Pyramid Model. To achieve this, and the Dietary Guidelines for Ameri- over the years the company has defined cans (DGA) and the Livelli di Assunzione the Barilla Nutritional Guidelines: a set of di Riferimento di Nutrienti ed energia per standards and rules to guide the contin- la popolazione italiana (National Rec- uous improvement process of products ommended Energy and Nutrient Intake that incorporate the criteria and values Levels - LARN). • improving the nutritional profile of existing products of reference which serve as inspiration In addition, the Group relies on the and launching new products that taste good, are safe for the Group when it comes to creating support of the Health and Wellbeing new recipes and improving existing ones, Advisory Board, composed of interna- and contribute towards a balanced diet; with reference to calorie intake and the tional experts on nutrition and in vari- main nutrients that must be contained in ous fields of medicine that supports the the products (in terms of fat, salt, sugar, Group in nutritional research matters.

• promoting healthy lifestyles and nutrition habits inspired HEALTH AND WELLBEING ADVISORY BOARD by the Italian lifestyle and the Mediterranean Diet. The Health and Wellbeing Advisory Board is the group of international experts that supports Barilla in understanding and promoting healthy lifestyles, moving forwards from the Nutrition Advisory Board which, from 2004 to 2016, fo- cused on the nutritional evolution of the Group’s product portfolio. The Board stimulates the Group and supports it in the definition of strat- egies promoting people’s health and wellbeing.

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REFORMULATION PLANS To assess the effectiveness of pro- and new products with one or more im- grammes to improve the nutritional pro- proved nutrients compared to the cate- file of products and guarantee the correct gory average; application of the Nutritional Guidelines, Continuing the journey begun in 2009, recipes, in compliance with the provi- the Group has established the Barilla • GOOD FOR YOU: products fully com- the Group renewed its commitment sions of the Barilla Nutritional Guidelines. Nutrition Index. pliant with the requirements established to the Better Nutrition project, which In the context of the Better Nutrition pro- Thanks to this indicator, Barilla is able to by the Guidelines. involves: ject, 455 products have been reviewed classify its product portfolio into three • on the one hand, continuing to offer from 2010 until today, in order to reduce categories: Depending on their category, products people products that taste good and are their saturated fat, salt and/or sugar con- are given a score starting from 0 (for also nutritionally balanced; tent or to promote the increase of the • JOY FOR YOU: tasty and satisfying products classified as Joy for You) up to • on the other hand, improving existing wholegrain component. products that are also very rich in ener- a maximum of 1.25 (for products in the gy, the use of which is recommended in Good for You category). moderation; The Barilla Nutrition Index is obtained by PRODUCTS REFORMULATED TO IMPROVE THE NUTRITIONAL PROFILE multiplying the products’ sales volumes 2019 2018 2017 • BETTER FOR YOU: products reformu- by the score assigned to the family to 35 33 27 lated based on the Nutritional Guidelines which they belong.

Specifically with regard to sugar, Barilla added sugar content, among which PERFORMANCE OF THE BARILLA NUTRITION INDEX continued reformulation activities in var- sauces, soft breads, and bakery products. 2019 2018 2017 ious product categories, in order to re- duce their sugar content. The reduction of sugars goes hand in 93.6 93.5 93.5 hand with the Group’s activities towards PRODUCTS COMPLYING WITH THE BARILLA NUTRITIONAL GUIDELINES In addition, the following were made reducing the saturated fat and sodium possible: content of products. Two products (one 2019 2018 2017 bakery product and one pesto) were re- 86% 86% 86% • a significant eductionr of sugar in formulated in 2019 to reduce the satu- all red sauces sold and distributed in rated fat component, while seven other Europe; products were reformulated to reduce • the development of new sauces salt (two bakery products, four sauces, without added sugars for the American and one pesto). and European market; • the development of soft breads with- To help consumers reach the recom- out added sugars for the Italian and mended daily intake of fibre (25 g/ French market. day), Barilla also reformulated 16 ex- isting products (eight pasta shapes and In 2019 alone, 18 products were refor- eight bakery products) to increase their mulated with the aim of reducing the fibre content.

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NEW PRODUCTS In addition, the range of Vero Gusto Among the products containing legume premium sauces, without added sugar, flour, the first Gran Cereale Crunchy which was initially launched in the USA, Legumes and Chocolate shortbread Barilla is attentive to the wellbeing of Four new products were added to the was extended to the European market. was also launched, containing chickpea consumers and consequently promotes category of sauces without added sugar, flakes, lentils and 100% wholemeal flour. healthy and balanced diets by develop- also developed to help consumers con- Over the past few years, the Group has ing new products, inspired by the Dou- trol the quantity of added sugar taken paid particular attention to expand- For people following a gluten-free ble Pyramid Model, that respond to peo- with their diet, as recommended by the ing its range of wholegrain products. diet, Barilla introduced new shapes of ple’s diverse nutritional and dietary needs. World Health Organisation. Three new products rich in fibre were legume pasta. launched in 2019 alone: Wasa Chili & Sea Salt, Gran Pavesi Cracker Curcuma (tur- Lastly, three new organic products meric crackers), Spaghetti Red Lentils. were launched in 2019: Fette biscottate BARILLA LEGUME PASTA And eleven new wholegrain products: con farro bio (rusks with organic spelt), four new types of wholegrain pasta Crostatina all’albicocca bio (organic apri- In 2018 Barilla presented the new range of legume-based pasta (red lentil (Caserecce, Celentani) and cereal pas- cot tart) and Tortini con cacao bio (muf- Penne and Fusilli, and chickpea Caserecce); a new type was added in 2019: ta (Mezze Maniche Rigate, Spaghettoni), fins with organic cocoa), certified with red lentil Spaghetti. Four pasta shapes made with 100% legume flour, rich in a mix of wholegrain cereals with black the European Union’s organic logo. protein and fibre and gluten-free, which represent a new range of products rice, two wholegrain bakery products conceived for all consumers who have gluten intolerance and for anyone (Pagnottelle Integrali, Gran Cereale Le- Specifically with regard to single-por- seeking wellbeing and naturalness in foods without sacrificing flavour. gumi) and four types of wholegrain tion snacks, Barilla is committed to re- The raw materials used are naturally gluten-free and the entire production pro- crispbread (Wasa 100, Din Harmoni, Din ducing calories to bring them below 150 cess takes place in a plant dedicated to the production of gluten-free foods. Glädje, Sandwich Sour Cream & Onion). kcal. In this direction, in 2019 Mulino Bianco and Pavesi launched three new Moreover, with these new products Barilla is supporting the spread of sus- To meet the requirements of consumers single-portion products: Crostatina all’al- tainable agricultural practices, as legumes improve the natural fertility following a vegan diet, Barilla launched bicocca bio (organic apricot tart), Torti- of the soil. the new Wasa Sandwich Sour Cream & ni con cacao bio (muffins with organic Onion, with an oat-based filling that al- cocoa) and Cracker alla curcuma lowed it to be certified as a vegan product. (turmeric crackers).

This certification was also obtained for

Pantone Pantone 1795 C 295 C all seven types of the high-protein pas- ta range (Barilla Protein Plus Angel Hair, Spaghetti, Thin Spaghetti, Penne, Rotini, Elbows, Farfalle), which was reformu- lated to replace egg proteins with peas proteins, an excellent supplement for a diet that excludes the consumption of animal protein sources.

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carbohydrates that are digested, ab- commercial products that represent the PASTA 3D sorbed and metabolised slowly, while main food categories and which are the those with a high glycaemic index (≥70 source of over 80% of carbohydrates con- Over the years, Barilla has embarked on an innova- on the glucose scale) contain carbohy- sumed in Italy with their glycaemic value. tive path aimed at integrating the most modern dig- drates that are absorbed fast and which The foods were chosen mainly based on ital technologies within its production processes. result in glycaemic peaks. the brand’s market share in each food cat- The Group was in fact the first manufacturer in the Foods with a low glycaemic index also egory and were classified in 13 food cat- world, in the food sector, to research new applica- help to maintain the feeling of satiety for egories: 1) beverages: beverages made tions of 3D printers for the production of pasta. longer, with consequent beneficial ef- from fermented milk, fruit juice, smooth- From the research work carried out and from the fects on hunger control, on the exces- ies, non-alcoholic soft drinks; 2) biscuits; collaboration with the Dutch research center TNO, sive consumption of calories, and on the 3) bread; 4) bread substitutes; 5) breakfast Barilla has developed the first 3D printer prototype maintenance of body weight within nor- cereal; 6) pastries and snacks; 7) sweets in the world capable of producing fresh pasta, us- mal values2. The study, carried out by the and confectionery; 8) cereals; 9) desserts ing a mixture of durum wheat semolina and water. Human Nutrition centre of the University and ice cream; 10) jam; 11) pasta; 12) piz- A selection of excellent ingredients, such as semoli- of Milan, the Human Nutrition Centre of za; 13) sugar and sweeteners. na derived from the finest grains, are chosen to ob- the University of Parma, and the National The glycaemic values were determined tain the superior quality of the 3D printed pasta Tumour Institute IRCCS, shows the posi- in accordance with the methodology BluRhapsody. The dough is worked with the arti- tion of Barilla products on the Glycaemic defined in the international FAO/WHO sanal method and in small quantities, to ensure and Index scale. The study analysed 141 standard guidelines. maintain an always perfect consistency. Thus BluRhapsody was born, the highest expression of the concept of pasta made in Italy. PRODUCT CATEGORY3 Gran Cereale frutta (Gran Cereale) 51 Gran Cereale cioccolato (Gran Cereale) 52 GLYCAEMIC INDEX1 Gran Cereale classico (Gran Cereale) 49 Macine (Mulino Bianco) 52 BISCUITS Molinetti (Mulino Bianco) 58 The glycaemic index is a parameter that values of this parameter to which the Fior di latte (Mulino Bianco) 47 makes it possible to classify carbohy- body responds with equally high varia- Segreti di bosco (Mulino Bianco) 53 drate-rich foods on a scale from 0 to tions in insulin levels, with consequent 100 based on their effect on glycaemia, effects that are harmful to general health Pavesini (Pavesi) 52 i.e. based on the ability to modify, fol- in the long term, foods with a low gly- Gemme integrali (Mulino Bianco) 46 lowing consumption, glucose levels in caemic index should be preferred. Foods the blood (so-called “postprandial gly- with a low glycaemic index (≤55 on the 2 Augustin, L. S., Kendall, C. W., Jenkins, D. J., Willett, W. C., Astrup, A., Barclay, A. W., ... & Ceriello, A. (2015). Glyce- caemia”). To avoid abrupt peaks in the glucose scale) are those characterised by mic index, glycemic load and glycemic response: an International Scientific Consensus Summit from the International Carbohydrate Quality Consortium (ICQC). Nutrition, Metabolism and cardiovascular diseases, 25(9), 795-815.

3 Scazzina, F., Dall’Asta, M., Casiraghi, M. C., Sieri, S., Del Rio, D., Pellegrini, N., & Brighenti, F. (2016). Glycemic index and 1 This report only mentions the categories in which Barilla products are included. glycemic load of commercial Italian foods. Nutrition, Metabolism and Cardiovascular Diseases, 26(5), 419-429.

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Classic loaves (Mulino Bianco) 62 4.2 Pan bauletto al grano duro (Mulino Bianco) 68 QUALITY AND FOOD SAFETY Pan bauletto bianco (Mulino Bianco) 59 Pan bauletto 5 cereali e soia (Mulino Bianco) 60 BREADS Pan bauletto fior di fibra (Mulino Bianco) 53 Cuor di lino (Mulino Bianco) 58 Barilla works daily to bring consumers The quality and food safety system im- Pan bauletto integrale (Mulino Bianco) 59 excellent products in terms of quality plemented by Barilla is based on the risk Sfilatini al grano tenero (Mulino Bianco) 65 and food safety. assessment method, which provides Classic crispy breadsticks (Mulino Bianco) 66 The protection of people’s safety is an es- the Company with tools and guidelines sential requirement for all products; it is to identify and analyse all possible risks Sfoglia di grano salted crackers (Mulino Bianco) 63 carefully monitored throughout all stages related to food safety and consequent- Sfoglia di grano wholegrain crackers (Mulino Bianco) 63 of the production process, from the for- ly to determine the necessary measures Crunchy spianate with pumpkin seeds (Gran Cereale) 53 mulation of the recipes to final distribution for their prevention and management. BREAD Focaccelle small focaccias with extra-virgin olive oil 63 in the point of sale. SUBSTITUTES (Mulino Bianco) Moreover, in order to manage known Le Dorate rusks (Mulino Bianco) 64 risks regulated by the law and resulting Over Cuori di orzo rusks (Mulino Bianco) 45 4 from chemical, biological, microbio- million tests are carried out Le integrali rusks (Mulino Bianco) 73 logical and physical contaminants, Ba- every year globally to monitor rilla complies with the HACCP (Hazard Chicchi al vento rice cakes (Gran Cereale) 67 the quality and safety Analysis Critical Control Points) meth- BREAKFAST Classic crunchy cereal (Gran Cereale) 66 of products od, which provides for the definition of CEREAL Fruit crunchy cereal (Gran Cereale) 62 critical control points (CCP) in the pro- Barley (Barilla) 58 duction process that are fundamental As proof of this commitment, at Baril- to guarantee the safety of food prod- CEREALS Spelt (Barilla) 63 la 80 managers are dedicated every ucts. Specifically, during 2019 the com- Wheat (Barilla) 72 day to organising and improving the pany published a new HACCP model Penne (Barilla) 50 quality and food safety system, a tool following the update of the standard Pennette rigate (Barilla) 53 which allows the Group to identify FSSC 22000. Classic spaghetti (Voiello) 51 and prevent any food risks associated with the products and make them safe The FSSC 22000 food safety system cer- Spaghetti no 5 (Barilla) 33 for consumers. tification is an internationally recognised PASTA Wholegrain spaghetti (Barilla) 35 certification system for food producers, Egg tagliatelle (Barilla) 55 Furthermore, the quality and food safe- developed in response to customers’ re- Mini farfalle with carrot and pumpkin (Barilla) 44 ty system ensures the best management quests for a recognisable standard which of problematic issues, including known makes it possible to assess and, there- Mini penne rigate with courgette and spinach (Barilla) 48 ones and those emerging along the en- fore, to certify food safety management Mini Pipe rigate with tomato and carrot (Barilla) 47 tire food chain. systems.

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Barilla has created an internal Thermal and not yet regulated by law, in order Process Authority unit responsible for to implement preventive measures for defining key parameters, such as stabi- their mitigation. lisation time and temperature, which make products that require the use of a thermal process safe. Around 2,500 monitoring tests In addition to managing known risks, the are carried out Barilla Unit Quality & Food Safety and the Barilla Research Labs also focus on every year on the identifying and monitoring potential main emerging risks emerging risks, i.e. critical issues currently in the food sector being studied in the scientific community

QUALITY AND SAFETY OF RAW MATERIALS

The Group regularly carries out checks subsequently implemented by the Quality With regard to durum wheat, Barilla has can be attacked by a fungus that develops along all its production chains, both Control laboratories within the pro- defined various prevention and control a mycotoxin, among which there is one during the selection and approval of duction plants or by qualified external activities along the entire supply chain, called deoxynivalenol (DON). suppliers and when raw material lots laboratories. guaranteeing ever greater safety and reach the production sites. As proof of product quality. Thanks to this system, Barilla is able to this commitment, every day, on average, accurately establish the frequency of an- Over a company specialist visits a supplier to 650,000 For example, Barilla requires its durum alytical checks for this mycotoxin, to be check that they are operating in compli- tests are carried out wheat suppliers to comply with the good carried out before buying the grain. ance with the reference standards and to globally every year agronomic practices contained in the exchange the knowledge that has always to monitor the quality Barilla wheat cultivation and storage After the planning stage, Barilla carries characterised such partnerships. and safety of raw materials rules, which, among other things, require out thorough checks on all the lots com- and packaging pesticides to be used only where strictly ing from the areas classified as being Barilla is also aware that different types necessary to protect crops against pests, at risk. of raw materials are exposed to different in accordance with more restrictive pro- types of food risk. For this reason, based To further protect the quality of raw ma- cedures and rules than those imposed by Finally, in all Barilla mills, durum wheat on specific risk assessment activities and terials and products, Barilla, through its current legislation. undergoes a strict food safety plan which internal reference standards, the Group Research Laboratories, promotes the involves further tests being carried out draws up customised monitoring plans constant search for innovative testing Additionally, Barilla has developed a fore- for different risk factors and, in particular, for each ingredient included in its prod- techniques to prevent the risks of food casting model that allows it to classify testing durum wheat to look for traces of ucts. The plans that are thus defined are fraud and adulteration. the cultivation areas in which the grain food contaminants.

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THE MYTOOLBOX PROJECT INTERNATIONAL LIFE SCIENCE INSTITUTE – EUROPE PRACTICAL GUIDANCE TO MITIGATION OF MYCOTOXINS As part of the Horizon 2020 programme, the European Union has decided to DURING FOOD PROCESSING fund the innovative MyToolBox project - Safe food and feed through an integrated toolbox for mycotoxin management, dedicated to developing an Mycotoxins are poisonous compounds that can grow naturally on foods such online system capable of providing concrete decision-making support to the as cereals, dried fruit or dairy products. About 500 million people have a mod- different players in the food chain on various issues. erate income that can be difficult to spend on food diversification, so their diet depends mainly on cereals. MyToolBox provides information and advisory forms, management tools, and This nutritional tightening situation exposes subjects to the harmful effects of technologies which provide farmers and all the other players of the procure- mycotoxins with a greater probability than subjects who have a more varied diet. ment chain with the ability to reduce the incidence of contamination from my- In this regard, in 2019, the ILSI Europe Process-Related Compounds and Natural cotoxins of crops, foods, and feed. Toxins Force Task Force, through the coordination and the chairmanship of the Barilla Advanced Laboratory Research Department, made public a report fo- The project includes a wide range of actors (universities, farmers, small and cused on mycotoxins in which they are exposed and described in a way detailed medium-sized technological enterprises, public-private research centers, con- all the characteristics of these elements potentially present in food in terms of trol bodies, the food industry and interested parties) and will guarantee a consist- occurrence and toxicity. ent impact of mitigation of the risk of mycotoxins on agri-food chains EU but This report aims to translate the results of previous task force studies into an ag- also Extra EU also in the long term. ile and simplified document that supports food operators and all other stake- holders in the implementation of practical strategies useful for mitigating the For more information on the project, see: https://www.mytoolbox.eu/ presence of mycotoxins during food processing.

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QUALITY OF PRODUCTION PROCESSES include checking the correct application the quality perceived by consumers is in of the Good Distribution Practices. line with the standards defined and im- plemented by Barilla. Lastly, during the In addition to ensuring the safety of raw recognized by the Global Food Safety In- In addition, during the year, the Quality year the Group organised specific tech- materials, Barilla guarantees the quality itiative, a non-profit foundation made up and Food Safety department carried out nical tasting sessions which made it pos- and excellence of all production pro- of specialists in the sector, which supports checks on 8,136 packages at the points sible to carry out over 85,000 product cesses. For this reason, for several years companies in defining safety manage- of sale, with the aim of ascertaining that quality checks. now, the Group has adopted Good ment systems food increasingly effective. Manufacturing Practices, in which over 1,200 health and hygiene requirements The FSSC 22000 standard aims at prod- PREVENTING FOOD FRAUD AND MANAGING are defined with which the environments, uct safety and promotes a transparent CRITICAL ISSUES production premises and facilities must and collaborative approach between the comply, as well as basic hygiene rules various operators in the supply chain. for operators. In order to guarantee the quality of the production processes, For the Group, the protection of food authenticity and traceability activities Barilla carries out more than 1,500 in- 10 million euros safety of those who choose its products by following the guidelines and strate- ternal audits and over 70 external audits spent during the year globally every day is also reflected in the promo- gies developed in recent years through every year, which allow it to identify po- for the ongoing improvement tion of initiatives aimed at combating the European Food Integrity Project tential areas of intervention to improve of production plants food fraud. funded project. the quality and safety of food products. and production lines Over the years, Barilla has created a struc- One of the concrete examples of appli- To guarantee the quality of the production to ensure product quality tured system for the prevention and man- cation of the project results, in addition processes, all Barilla plants are certified and safety agement of fraud, based on the identifi- to other activities undertaken, consists of according to the FSSC 22000 standard, cation of critical issues along the supply the development of a model capable of chain and planning actions for their man- ensuring integrity and safety in the pro- agement and mitigation. duction of industrial egg products. QUALITY AT THE POINT OF SALE The freshness of the ingredients and To support the management system, the egg-based foods is a crucial and highly Group organises the Food Fraud Preven- important problem for the Group as it is Attention to the quality and safety of The manual contains 247 requirements tion Programme, an initiative in coop- the foundation for the production of safe food in Barilla covers the entire life cycle for the storage and transport of products, eration with its suppliers that allows the and high quality food. In 2019, in fact, a of products, including transportation and as well as the quality of service standards company to establish precise standards joint research, between the Barilla Ad- display at the points of sale. To protect that the Group's logistics partners must for assessing the vulnerability of the sup- vanced Research Labs and the University the quality of products up to the point comply with. The Group periodically or- ply chain with a view to preventing fraud of Milan, allowed to study the efficiency of sale, the Group has defined Good ganizes the Food Days, moments ded- and sharing risk management. of the European legislative indices, while Distribution Practices, a document icated to the training and awareness of promoting new ones, for the detection of through which it oversees the quality of distributors on quality and food safety The Group has decided to continue its possible alterations in the products based transport and distribution activities. issues along the supply chain, which also fraud prevention and verification of food on eggs.

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In parallel, an analytical method based On the management of any critical EVALUATION OF CHEMICAL INDICES on ion mobility spectrometry (IMS) cou- issues, Barilla has defined a punctual FOR THE IDENTIFICATION OF INCUBATION WASTE EGGS pled with gas chromatography (GC) was management system through which developed, configured as a rapid, sensi- it is able to promptly activate diagnos- IN EGG PRODUCTS tive and convenient instrument that re- tic procedures to identify the causes cords the volatile footprints of the differ- of the problem and activate effective The use of waste eggs from incubators (IRE) is not allowed for the preparation ent batches of egg products, generating solutions to safeguard the health of of products. a chemometric model for the detection the consumer. of any freshness problems. However, some manufacturers use them fraudulently within the production For more information on the project, During the year, the Group did not reg- chain. IREs are unfertilized eggs or fertilized eggs but with an embryo that died see the website: https://www.sciencedi- ister cases of food problems and did not in the first days of incubation. rect.com. carry out any product recall. The aim of this research was to study the efficiency of European legislative indices that use substances such as uracil, furosine and organic acids for the detection of IRE in egg products and to test their ability in identifying altera- tions within the examined elements.

The sensitivity of the indices was assessed on whole egg samples and on prod- ucts prepared with IRE elements, selected after their dilution with healthy shell eggs, simulating potential illegal practices.

In addition, a high resolution mass spectrometry study was performed to verify which markers were the most discriminating for incubated eggs. The results confirmed the illegal presence of IRE in egg products.

According to the study, it is therefore very important to review the thresholds established by European legislation, lowering the allowed limits respectively from 10 to 6 mg/kg of dm and from 1000 to 600 mg/kg of dm.

In addition, uracil concentrations 0.9 mg/kg dm should be considered as a warn- ing sign for a potential alteration, therefore uracil is suggested as an additional future legal parameter.

For further info: https://www.sciencedirect.com/science/article/pii/S0308814618313621 https://www.sciencedirect.com/science/article/pii/S0956713519303561

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THE MEAT CHAIN TRAINING FOR THE PREVENTION OF INFESTATIONS

Food fraud is a major problem in the field of food safety and quality and meat During the year, Barilla continued training and awareness-raising activities aimed products are among the most susceptible. Despite the efforts made by the at preventing food infestations in areas where the climate presents a risk, such as control authorities and by the food industry itself to combat possible fraud, Brazil, Turkey and the Asian regions. the undeclared replacement of types of meat with cheaper products is still widespread. BRAZIL

In 2019, Barilla completed a collaborative research study together with the Awareness-raising activities continued on the issue of infestations in stores, University of Parma which led to the creation of a method that allows you involving the commercial partners themselves. During 2019, 153 visits were to verify the type of meat used within a given product, based on the pep- made to different points of sale with the aim of identifying areas for improve- tides present. ment of food conservation practices. Barilla involved and trained 432 people, including customers, other companies facing the same situation and call center The study was conducted on Bolognese sauce, allowing to confirm the pos- operators. Finally, Barilla was nominated for the Reclame Aqui award among the sibility of unequivocally identifying fraud risks deriving from eight different Top 8 Best Consumer Services, in the category of food companies, confirming types of meat (duck, rabbit, chicken, turkey, buffalo, horse, deer and sheep). the great satisfaction of consumers with the answers given by the call centers formed by Barilla.

For further info: TURKEY https://www.sciencedirect.com/science/article/abs/pii/S0956713518305176

Thanks to training and support activities offered to distributors, which entail the use of a system for the identification of the causes of infestations at points of sale, complaints decreased by 18%. QUALITY AND FOOD SAFETY TRAINING ASIA

In China, Taiwan and Hong Kong, Barilla continued to train its distributors on Food quality and safety rely strongly on technicians and sales staff, coming from how to prevent infestations. experience and skills. For this reason, the various plants in the world. over the years the company has es- ITALY tablished training and awareness pro- grammes dealing with these subjects. Over 7,500 In Italy, the entire Sales Force of the company has been trained to manage the infestations, highlighting the critical issues and actively intervening in cases of In addition, also in 2019 the Quality and people trained and made need. In addition, the company conducted an analysis of the shelf in the area to Food Safety Days were organized, days aware of quality and food identify the areas most at risk in terms of infestations and was structured in such dedicated to the dissemination of the safety issues globally a way as to be able to intervene, if necessary. culture of quality and food safety, which in one year was attended by over 840 operators,

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4.3 4.4 RESPONSIBLE MARKETING FOOD EDUCATION

Barilla, aware of the influence that market- provide transparent information and ac- One of the pillars of Barilla’s Good for For several years, Barilla has been com- ing activities can have on people’s opin- tively promote the adoption of healthy life- You, Good for the Planet Mission is the mitted to developing educational and ions and behaviour, promotes the devel- styles, respecting the values, ideas, gender, food education of people, particularly informational activities for new gener- opment of responsible communication. ethnicity, religion, and culture of all. the youngest. In fact, the Group aims ations and employees, through which to disseminate information and rules for it promotes healthy lifestyles, balanced With this in mind, Barilla commits to pro- Furthermore, as part of its responsible a correct and sustainable diet among eating habits and responsible food vide people with clear and transparent marketing principles, Barilla recognises consumers. consumption. nutritional information on all products, that children are important stakehold- through brand activities, product pack- ers and respects their universal rights aging and the Group’s websites. For ex- according to the definition contained in GIOCAMPUS ample, Barilla product packaging contains the UN Convention on the Rights of the important advice for a healthy and bal- Child. Marketing activities can have an anced diet and suggestions for the cor- important impact on the development Giocampus is a project promoted by an a further 2,600 in the other 9 munici- rect consumption of the products, with of children’s ideas and behaviours: for educational alliance between the public palities that signed up to the project. particular reference to the optimal quan- this reason, Barilla manages all market- and private sectors, dedicated to the well- tities to be eaten and possibly indications ing activities addressed to children with being of future generations. For the past • GIOCAMPUS TOGETHER: an educa- on how to create meals that provide the great care, avoiding all communica- nineteen years, it has set itself the goal tional path dedicated to respect for di- correct amount of energy and nutrients. tions that may expose children to the of promoting healthy lifestyles through a versity and disabilities, which involved risk of exploitation, manipulation and programme - unique in Italy - of physical 150 children during the school months With regard to advertising and marketing commodification. and healthy eating education for children and a further 70 young people during activities, Barilla pays particular attention Lastly, consumer feedback is very im- between 5 and 14 years of age. the summer event. Giocampus Togeth- to the influence these can have on people, portant for the improvement of products er is based on the principle that, through especially younger ones. For this reason, and services. In this light, throughout the The activities promoted by Giocampus physical activity, all children can be in- the Group, in collaboration with UNICEF, years Barilla has introduced and perfect- during 2019 involved a variety of social cluded, with their different abilities. defined the Responsible marketing prin- ed various listening channels, including events, including: ciples, a set of principles which apply to all traditional methods, such as contact • GIOCAMPUS SUMMER: a summer marketing, sales, corporate communica- over the phone or through the website, • GIOCAMPUS SCUOLA (SCHOOL): camp that offers children sports, move- tion, and external relations activities. and the most innovative social channels. a specific path integrated with the school ment and laboratory activities as well By using these channels, the company curriculum that aims to teach a healthy as, of course, food education. In 2019, In particular, these principles require can collect generic comments and re- and balanced lifestyle. During 2019, Gi- the summer campus was attended by all marketing communications to re- ceive specific reports or requests for ocampus Scuola involved about 8,500 6,000 boys and girls aged 5 to 14 years, spect the fundamental value of people, information. children from the city of Parma and supervised by a staff of 180 people.

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SÌ.MEDITERRANEO Moreover, Giocampus Summer involved Also as part of the project, the Giorno di about 300 secondary school students Giocampus (Giocampus Day) event is or- who, through the Giocampus Teen ganised each year, an opportunity for the programme for work-related training, city to celebrate, in which children and Barilla’s focus on food education is ad- available every day in all the company’s worked together to carry out numerous adults can come together and discuss is- dressed not only to new generations but canteens. The menus offered every day recreational and educational activities. sues of inclusion and diversity. also to all the people who work for the consist of wholegrain bread and pasta, Group. To this end, over the years the a varied selection of cereals, vegetarian • GIOCAMPUS SNOW: a week in the The 2019 event involved over 1,200 Group has developed the sì.mediterra- salads and legumes, fish-based dishes snow, in which children have the oppor- people and also provided an opportunity neo project. and a reduced selection of red meats tunity to try out different winter sports to hand out the prizes to the Parma pri- and fried foods. and learn the basic rules of proper nu- mary schools that took part in the Fiabe This initiative, which stems from a collabo- trition. Almost 500 children took part in Motorie programme. ration between Barilla and the Department Thanks to this initiative, Barilla has seen a this initiative during the year. of Clinical and Experimental Medicine of growing attention among employees to the University of Naples Federico II, the more balanced diets, with a significant in- University of Parma, and with the contri- crease in the consumption of wholegrain bution of the Barilla Heath and Wellbeing products and white meat, and a marked Advisory Board, aims to increase aware- reduction in orders for red meat. ness among employees of the benefits of the Mediterranean Diet and to improve Furthermore, to make it easier for em- their eating habits every day. ployees to increasingly adopt the Medi- terranean Diet as a daily choice, sì.med- iterraneo has created a digital platform 7,500 which, through a chatbot, a virtual as- employees engaged sistant, provides made-to-measure food in 15 countries advice based on lifestyle, preferences and food consumption recorded in the company’s canteen. Through the sì.mediterraneo project, Barilla provides numerous studies and re- The user who has registered for the pro- search papers concerning the benefits of gramme can, on a daily basis, consult the the Mediterranean Diet and information menu available at the canteen and chat sheets to help people follow a healthy with the virtual assistant to receive cus- and balanced diet, in line with the double tom-made suggestions that guide them food pyramid developed by BCFN. in choosing their food. Furthermore, the programme can monitor progress and de- In this context, Barilla develops envi- tect all virtuous food choices in line with ronmentally sustainable and nutrition- the Double Pyramid, rewarding them with ally balanced menus for its employees, points that can be converted into prizes.

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VIVISMART "CHOOSE, COOK AND SHARE”: OUR BRAND ACTIVATION IN GERMANY Since 2017, Barilla has been involved in in people’s eating habits resulting from the “ViviSmart” project, a partnership better knowledge of the right nutritional As part of a wider sustainability program called Recipe for good living, the that brings together Barilla, Danone styles and healthy lifestyles. Barilla brand, with the aim of spreading balanced and sustainable food mod- Italy and Coop Italy, with their respec- els, has defined a set of principles that reflect the essence of balanced food tive Foundations, with the collaboration In particular, this study showed that: choices, created thanks to the collaboration with chefs and nutrition experts, of major companies of the food industry, such as the starred chef Davide Oldani, the chef Pietro Leemann and the consumer cooperatives, non-profit foun- • 11% of the children who took part in Future Food Institute. Principles that guide more responsible and balanced dations, and scientific research. the project started drinking more water consumption through a conscious choice of what we choose to bring to our during the day; tables, how we cook our dishes and how we share them. The project was intro- The aim of the initiative is for people to duced in Germany, a country where, according to the BCFN Foundation Food adopt smart lifestyles, i.e. lifestyles char- • 6% of the children who took part in Sustainability Index, nutrition education should be strengthened. The first to be acterised by informed nutritional choices the project increased their consumption involved were university students from 7 German universities, a particularly sensi- and aligned with the Mediterranean mod- of fruit, while 13% of children increased tive target of young people who are defining their eating habits. el and the food pyramid. their consumption of vegetables; Specifically, two initiatives were launched: With an innovative multi-factor approach, • the distribution of a welcome kit containing advice for adopting a bal- in selected points of sale and primary • more children have decided to spend anced and sustainable diet to over 60,000 students in Hamburg, Berlin, schools, ViviSmart involves Italian families more time on physical activity, starting Leipzig, Munich, Frankfurt, Cologne and Munster; in a daily programme that combines at- to play sports for at least 4 days a week. • the realization of awareness courses on sustainable cooking, called tention to proper nutrition with physical Learning Kitchens, directly at the students' home, together with a special- exercise. People therefore have the op- ized team from the Future Food Institute, reaching over 250 participants. portunity to learn about choosing food, As well as participation in the student fair in Hannover with the promotion knowing its nutritional properties, as well of quizzes on correct eating habits and shared cooking moments that as to perform physical activities following reached more than 1,300 people. a few simple rules.

Since its launch in 2017, the initiative has involved 16 selected stores and 16

Pantone Pantone primary schools in 4 different cities, 1795 C 295 C including 80 teachers and over 1,500 children and families in its activities.

Furthermore, LUMSA University, in col- laboration with the University of Naples Partenope and the University Roma Tre, has conducted research on changes

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RESPONSIBLE SUPPLY CHAINS 97

ANIMAL WELFARE 122

PRODUCT PACKAGING 132

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5.1 RESPONSIBLE SUPPLY CHAINS

Each Barilla product has its own history, made up of BARILLA’S SUPPLIERS different stages, from growing the raw materials until it reaches the table of millions of people. During 2019, over 7,900 suppliers have The same values and a more responsible been engaged by Barilla: they represent way of doing business are shared with In line with a concept of quality that has evolved over the key partners with whom it had a com- the same suppliers. years, offering good products to people cannot overlook mercial relationship during the year. the impact of the production and supply chain on the environment and the communities involved.

A “field to table” commitment that is expressed in two SUPPLIERS BY COUNTRY directions: TURKEY 9% RUSSIA 7% ITALY • improving the efficiency of the production processes, USA 32% in order to reduce the environmental impact in terms 13% of CO emissions and water consumption; 2 SWEDEN 7% FRANCE 15%

GREECE GERMANY • promoting farming and livestock breeding practices 7% 10% with a lower impact for all the Group’s strategic chains.

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THE BARILLA SUSTAINABLE AGRICULTURE CODE

SHARES OF RESPONSIBLY PURCHASED STRATEGIC RAW MATERIALS 2019 VS. 2018 Raw material suppliers are key partners, of quality, food safety and environmental with whom the company establishes impact. Furthermore, all Barilla contracts relationships based on dialogue and with suppliers are based on the express transparency. Suppliers are required acceptance of the principles and values to provide raw materials of the high- laid down in the Group’s Code of Ethics. est quality and to share the ethical and social and environmental responsibility • PROMOTING FOOD HEALTH AND principles that characterise the Group’s SAFETY: in order to guarantee the high way of doing business. quality of its products, Barilla regularly 47% 53% monitors the risk profile of suppliers with OTHER The Group’s attention to the production regard to the food safety of raw materials. RAW MATERIALS and supply chains has been formalised RESPONSIBLY in the Barilla Sustainable Agriculture • REDUCING THE ENVIRONMENTAL PURCHASED Code (SAC), a document that contains IMPACT: all suppliers are required to ful- the principles that guide the proper man- ly respect the environment and comply agement of relationships with the play- with national and international environ- ers of the production and supply chain mental laws. Furthermore, in order to 53% 47% and the management of purchases. monitor the impact of the production and supply chains, throughout the prod- 2019 2018 The Code is based on five principles: uct’s life cycle, the Group uses the LCA (Life Cycle Assessment) methodology. • SEEKING EFFICIENCY AND COM- PETITIVENESS IN THE PRODUCTION • LISTENING AND WORKING TO- SYSTEM: the starting point for the GETHER FOR CONTINUOUS DEVEL- THE SUSTAINABLE AGRICULTURE PROJECT development of an economically, OPMENT: the Group works with vari- socially and environmentally sustainable ous stakeholders, including universities, supply chain that increases the competi- non-profit organisations, institutions and The principles of the Sustainable Agri- and social issues. In 2019, the Group con- tiveness of the players involved. trade associations, to identify emerging culture Code are implemented through tinued its efforts to develop sustainable risks and opportunities in agriculture. the Barilla Sustainable Farming (BSF) pro- agriculture projects all along the produc- • PROTECTING BUSINESS INTEGRI- gramme, by means of which the Group tion and supply chains of: durum wheat, TY AND ENFORCING THE CODE OF supports and promotes the adoption of common wheat, flours, cocoa, basil, to- ETHICS: the Group favours the adop- sustainable and innovative agricultural matoes, and vegetable oils. Always in tion of long-term contracts with its sup- practices in its strategic production and 2019, thanks to this programme, it was pliers, guaranteeing stable earnings and supply chains, as well as in those which by possible to increase the percentage of re- promoting sustainable farming in terms their nature pose potential environmental sponsibly purchased raw materials.

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RESPONSIBLY PURCHASED RAW MATERIALS Share of purchases Tonnes Total tonnes selected from responsibly selected from responsibly purchased managed supply chains managed supply chains out of the total 2019 2018 2019 2018 2019 2018 t. t. % Strategic raw materials Durum 1,159,980 1,117,088 563,984 434,312 49% 39% wheat Durum wheat 352,852 325,419 204,260 199,348 58% 61% semolina Common 82,820 80,971 37,320 17,400 45% 21% wheat Common 322,167 325,666 166,268 160,603 52% 49% wheat flour Rye 33,153 41,521 0 0 0% 0% Rye flour 23,600 22,927 0 0 0% 0% Tomatoes 59,774 68,112 58,460 63,863 98% 94% Sunflower 39,256 39,257 38,085 33,880 97% 86% oil Rapeseed 7,951 8,950 4,744 4,500 60% 50% oil Sugar beets 56,146 57,461 55,437 56,822 99% 99% ANALYSIS OF THE ENVIRONMENTAL IMPACT Eggs 22,957 24,684 22,957 23,103 100% 94% OF PRODUCTS Raw materials from supply chains with environmental and social issues Cane sugar 1,483 1,497 1,483 1,497 100% 100% Cocoa 13,383 13,021 12,637 3,580 94% 27% Barilla regularly analyses the environ- is analysed increases every year and Beef 918 753 918 753 100% 100% mental impact of the entire life cycle today covers 77% of production volumes. Pork 2,400 2,108 2,400 2,108 100% 100% of its products, using the Life Cycle Chicken 0 0 0 0 0% 0% Assessment (LCA) methodology. 77% Wild-caught 46 68 46 68 100% 100% of volumes produced covered fish This tool allows the company to assess by the LCA analysis Other raw materials of animal origin the environmental impact of products in Butter 7,625 7,592 0 0 0% 0% terms of greenhouse gas emissions, wa- ter consumption and soil area used, tak- Approximately 95% of the Group’s Milk 3,333 3,161 2,783 2,585 83% 82% ing into account all stages of the prod- product portfolio belongs to the base Dairy 7,421 7,303 1,373 1,210 19% 17% products uct’s life, from growing the raw materials of the Environmental Pyramid (prod- until consumption. The percentage of ucts with a low environmental impact Total 2,197,264 2,147,558 1,173,154 1,005,632 53% 47% products whose environmental impact in terms of volumes).

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ENVIRONMENTAL IMPACT OF INGREDIENTS PURCHASED IN 2019 DURUM WHEAT Carbon Ecological Water footprint footprint footprint kt CO Mm3 Global ha 2eq Durum wheat is a fundamental raw ma- promotion of sustainable growth of the Durum wheat 646 1,506 889 terial and the main ingredient of Barilla’s farmers/producers. This has been the ba- Semolina 204 566 304 recipes. It is, therefore, fundamental to sis of a number of projects over the years Common wheat 30 89 37 guarantee, throughout the supply chain, aiming to support the sustainable develop- Common wheat flour 133 289 142 the highest quality of materials and the ment of the production and supply chain. Rye 12 18 15

Rye flour 11 12 12 DURUM WHEAT PURCHASES Sugar beets 39 34 20 Total tonnes Tonnes purchased from Tonnes purchased under Sunflower oil 94 152 19 purchased the local market farming contracts Rapeseed oil 21 21 4 t. t. % t. % Tomatoes 21 2 9 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

Eggs 98 64 54 Italy 734,980 670,000 601,425 562,000 82% 84% 440,000 450,000 60% 67% Cane sugar <1 1 1 Greece 64,000 66,000 64,000 66,000 100% 100% 35,000 22,879 55% 35% Cocoa 7 376 91 Beef 22 24 9 Turkey 132,000 135,000 130,000 133,000 98% 99% 16,000 15,000 12% 11% North Pork 8 48 3 229,000 213,000 229,000 213,000 100% 100% 0 0 0% 0% America Wild-caught fish <1 <1 <1 Total 1,159,980 1,084,000 1,024,425 974,000 88% 90% 491,000 487,879 42% 45% Animal fat 42 52 14 Fresh milk 4 5 2 Dairy products 72 88 24 Total impact 1,464 3,347 1,649 DURUM WHEAT SEMOLINA PURCHASES Total tonnes Tonnes purchased from the local market purchased With a view to transparency, Barilla pub- The results are published on the website t. t. % lishes the results of the LCA analyses it https://www.environdec.com 2019 2018 2019 2018 2019 2018 has performed through Environmental Italy 117,620 122,000 81,900 85,120 70% 70% Product Declarations (EPD), an interna- tional communication tool compliant North America 96,520 85,880 96,520 85,880 100% 100% with the ISO 14025 standard. Each EPD Mexico 79,234 78,280 79,234 78,280 100% 100% undergoes internal checks before publi- 66 EPDs cation, while the entire system of which published, covering 70% Russia 59,478 43,320 59,478 43,320 100% 100% they are part is subject to an annual audit of volumes produced Total 352,852 329,480 317,132 292,600 90% 89% by an independent third-party body.

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ITALY PURCHASES OF DURUM WHEAT FROM ITALIAN FARMERS WHO USE THE GRANODURO.NET SYSTEM SUSTAINABLE DURUM WHEAT PROJECT Barilla’s commitment to favouring the Number of growers and farm Tonnes of wheat grown with the holdings that use granoduro.net support of granoduro.net Italian pasta supply chain continued, Born in 2009 from the collaboration by promoting an increasingly strong and with HORTA, a spin-off of the University 2019 2018 2019 2018 lasting partnership with durum wheat of Piacenza, this project introduced two Northern Italy 2,137 1,006 132,972 88,169 producers through the involvement of innovative tools supporting the devel- Producers’ Organisations (PO). opment and continuous improvement Central Italy 1,572 1,401 122,652 91,390 With this in mind, in 2018 the Group of sustainable agronomic practices: signed an agreement with the Crédit Southern Italy 1,483 1,121 78,929 47,653 Agricole financial institution with the goal • the Barilla Decalogue for Sustainable Total 5,192 3,528 334,553 227,212 of allowing Barilla’s suppliers to receive Cultivation of Quality Durum Wheat, direct loans, under competitive financial a document which contains 10 rules conditions. Thanks to this agreement, and useful tips to promote the spread 5,000 farms will have the opportunity to of more efficient and sustainable Another tool was added in 2018: Agrosat, in the experiment, which will last 3 years, access subsidised loans, strengthening agricultural practices, validated over a platform stemming from the collabo- with a GOI project (Operational Groups the local production fabric. the years thanks to field trials in different ration with the CNR (National Research for Innovation) funded by the Region of The agreement is part of a broader Italian areas; Council) Institute of Biometeorology of Emilia Romagna. programme promoted by the Group Florence and Foggia. to support Italian agriculture, which • the website Granoduro.net®, a soft- As a result of the numerous initiatives entails entering into three-year supply ware which, by analysing a number of It is an innovative and completely free implemented during the year to support chain contracts with farmers and farms objective parameters (such as weath- tool able to support farmers in manag- farmers and promote more responsi- operating in Emilia Romagna, Marche, er trends, soil fertility, the phenologi- ing fertilisation through precision farm- ble agricultural practices, in 2019 the Apulia and Campania. cal state of the plant, and many others) ing techniques. Barilla Group was able to purchase over provides concrete support to farmers in 334,000 tonnes of durum wheat grown Thanks to these contracts, the compa- making technical decisions regarding To develop synergies between different in a more responsible way. nies of the production and supply chain such things as field fertilisation and crop supply chains, a project was launched can benefit from greater price stability disease treatments. for the assessment of the positive impact and plan the use of means and resources of rotation of durum wheat and sugar more confidently. beet crops.

During the year, thanks to the partner- ship with the Cooperative of Sugar beet 440,000 Producers (COPROB), Italia Zuccheri, tonnes of Durum wheat Consorzio Agrario dell’Emilia Romagna, purchased under LEGAMBIENTE and the Faculty of Agri- three-year contracts culture of the University of Piacenza, approximately 30 farmers were involved

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THE MoU FOR ITALIAN DURUM WHEAT By signing the document, Barilla took on a series of commitments, with the aim of improving the entire production and supply chain, among which: In 2019, Barilla signed a Memorandum of Understanding with the Ministry of Agricultural, Food and Forestry Policies (MIPAAF). • to PURCHASE at least an additional 120,000 tonnes of Italian durum Under the MoU, Barilla and the Ministry undertake to collaborate to support wheat compared to 2019, thus reaching a total of 800,000 tonnes of Italian the Italian durum wheat supply chain: by promoting sustainable agricul- durum wheat; ture practices, also thanks to the support of new technologies and precision farming practices; by developing new varieties, adapted to the soil and the • to STIPULATE yearly or multi-annual supply contracts for at least 70% of its various climates; and by encouraging dialogue among all the components total annual supplies; of the wheat/pasta production and supply chain, to find shared solutions to common challenges. • to GUARANTEE an adequate premium over the market price as reward for the achievement of the parameters set forth under the supply chain contracts;

• to DEVELOP the Italian durum wheat production and supply chain in accordance with the Barilla Durum Wheat Manifesto;

• to COOPERATE for the reduction of the environmental impact of its du- rum wheat production and supply chain, setting incentives in the contracts for compliance with the Barilla Decalogue for Sustainable Cultivation of Quality Durum Wheat;

• to PROMOTE the adoption of technologies in support of farmers’ decisions;

• to INCENTIVISE research on durum wheat varietals for increasingly higher availability of high-quality Italian durum wheat;

• to ESTABLISH a dialogue with all parts of the durum wheat production and supply chain, from primary production to distribution, for the analysis of issues faced by the sector and the search for shared solutions;

• to SUPPORT social farming projects for the creation of jobs for women, people with disabilities or marginal populations.

The term of the MoU is three years from its execution; it will be updated on a yearly basis. Barilla’s purchase commitments for 2021 and 2022 will be reviewed by December, based on the yields of the wheat seasons.

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100% ITALIAN WHEAT PASTA PRODUCTION PROCESS

The new Barilla 100% Italian Wheat Pasta is a pasta from selected durum wheat, Barilla has reconsidered all production stages and adopted processes and obtained from the best varieties, adapted to the Country’s different weath- technologies based on the miller’s and pasta maker’s know-how (in terms of er conditions and with notable nutritional properties: a high protein content, grinding, kneading, choice of the drawplate, drying and selection of the end high-quality gluten, the colour of yellow gold and a low ash (minerals) content. product geometry).

“This project, of which the end product is just the most visible result, is an THE PRODUCT expression of our commitment to invest in Italian agriculture, with the goal of having increasing quantities of high-quality Italian durum wheat that is Available in the brand’s ten main shapes, in sky blue packaging: a bright blue, grown in a sustainable manner. We have achieved an extraordinary result, the colour of the Italian sky, under which Barilla produces and processes after many years of research on raw materials and of working on the entire pasta whose strong point lies in its Italian-ness and its bearing the mark of the production and supply chain, the result of the agreements stipulated with Mediterranean, nature and positive energy. over 8,000 Italian farmers and of the Memorandum of Understanding signed The packaging is made of virgin fibre cardboard, from responsibly managed at the end of last year with the Ministry of Agriculture.” forests in accordance with certified standards, and can be fully recycled with paper. Paolo Barilla, Vice-Chairman Find out more: www.barilla.com Barilla has built this launch on an actual statement of intent and concrete ob- jectives, an innovative vision of the product and of the production and supply chain, aiming for excellence and supporting resources, local communities, the territory and the environment. These principles are given formal expression

Pantone Pantone in a list of ten points - The Durum Wheat Manifesto - which contains the 1795 C 295 C company’s commitments for quality Italian durum wheat pasta that has been produced responsibly.

RAW MATERIALS

Four exclusive durum wheat varieties are used (Svevo, Puro and Aureo, mainly grown in Central Southern Italy, and Pigreco, from Northern Italy), farmed in 13 Italian regions (Emilia Romagna, Marche, Abruzzo, Umbria, Lombardy, Molise, Veneto, Tuscany, Lazio, Apulia, Basilicata, Piedmont, Campania) and characterised by a high protein content (protein grade with peaks of over 14% in wheat and over 13% in semolina), high-quality gluten, a yellow gold colour, and a low ash content. The wheat is purchased from over 8,000 farmers, members of more than 100 consortia, cooperatives and storage companies.

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POSSIBLE ORIGINS FOR IMPORTS durum wheat, every year Barilla imports The protein content is the most impor- TURKEY OF DURUM WHEAT AND MAIN QUALI- around 20-30% of its requirements from tant parameter in determining the qual- TATIVE PARAMETERS European or non-European countries, ity of the wheat as a high protein level, Barilla completed the work with the depending on quality. Wheat with a high together with the quality of the gluten, Bahri Dağdaş International Agricultural Durum wheat is imported into Ita- protein content is mostly imported from improves cooking quality. We try to max- Research Institute, with the publication ly mainly for quantity reasons as total France, Australia or the United States, to imise these characteristics in our pur- and distribution of the Sustainable Agri- Italian production covers just 65-70% guarantee the qualitative performance chases. The yellow colour of the wheat culture Manual. of requirements. Often, the quality of required by our consumers. Over the determines the colour of the pasta and a Italian durum wheat is not sufficient and years, depending on the quality and low ash content allows the grinding pro- Moreover, the Group’s work with the Na- suitable to achieve the qualitative perfor- quantity of the Italian harvest, imports cess to be optimised. mik Kemal institute in Thrace continues, mance required for high-quality Italian may also come from other countries with the goal of launching projects that pasta. In particular, while it favours Italian such as Greece or Spain. GREECE can contribute towards creating a pro- duction and supply chain model simi- Over the course of the year, Barilla lar to those already developed in Italy continued to forge partnerships with and Greece. the various local players in Greece, USA NPD FRANCE EASTERN EUROPE aimed at promoting a more sustaina- RUSSIA 14.5% Protein 14.5% Protein Min 14.5% Protein ble durum wheat supply chain. In this High Colour Index High Colour Index RUSSIA AND KAZAKHSTAN respect, the Group worked with the The Barilla supply chain of durum 14.5% Protein University of Thessaly to define new wheat in Russia is still in a preliminary farming tools and techniques, sensitive study phase. In this context, Barilla has to impact and better management of launched a study and monitoring pro- natural resources. ject for the identification of the most ef- ficient durum wheat crops with regard to yield and environmental sustainability. 35,000 These tests also aim to lay the founda- tonne of durum wheat tion for the definition of a sustainable ag- USA DESERT DURUM purchased under riculture handbook for the farmers of the 15% Protein Farming Contracts Russian durum wheat production and Low Ash Content supply chain. High-Quality Gluten In 2019, the gradual spread of farming NORTH AMERICA MEXICO GREECE AUSTRALIA contracts and the use of Granoduro.net® 13% Protein Min 12.5% Protein 15% Protein continued. In the United States and in Canada, the High Specific Weight Imported only High Colour Index High Vitreous if high-quality protein High-Quality Gluten farmers of the durum wheat production Imported only Thanks to these initiatives, 317 farmers and supply chain have, for a long time, if high protein sowed the first 2,742 hectares in accord- included technical decision-making sup- ance with the new Barilla standards. port systems similar to those developed

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COMMON WHEAT AND COMMON WHEAT FLOUR by Barilla in the European supply chains Canada and SeCan, continued being dis- into farming processes. In the agricultural tributed to all players of the supply chain. areas of North America, the Group con- In the state of Montana, Barilla promot- tinued to collaborate with research bod- ed the use of the Agrible digital platform, Common wheat flour is a key ingredient for work of farmers’ communities and limit ies and local partners in 2019 to improve which provides farmers with real-time Barilla’s bakery products and is produced the impact on the Planet, by safeguarding the agronomic knowledge of farmers data on crops, supporting them in the ap- mainly in Italy and France. To promote the biodiversity, reducing the use of chemi- and to develop new sustainable agricul- plication of more efficient and sustainable sustainable development of this production cals and protecting pollinating insects. ture techniques. farming practices. In the three-year period and supply chain, the Group uses two im- At the same time, the Carta di Harrys (The 2017-2019, Agrible was used on 12,270 portant documents: the Carta del Mulino Harrys Charter) was drawn up in France, in In collaboration with the University of hectares and 21 farmers of durum wheat, and the Carta di Harrys. collaboration with several supply chain op- North Dakota, Barilla has promoted the which was then destined for Barilla via La Carta del Mulino (The Mulino Charter) erators, agronomy experts and certification publication of a complete agronomic CHS and Columbia Grain. was drawn up with the objective of sup- bodies, to define the principles of sustain- guide, which contains a rulebook with the porting the spread of sustainable agricul- able agriculture with which the common most innovative agricultural techniques In collaboration with the University of Ar- tural practices along the common wheat wheat chain is required to comply. The for farming durum wheat. This guide, af- izona, Barilla commissioned a bi-annual flour supply chain in Italy and France. Charter contains 40 agro-ecological rules ter two years of field trials, has been made study on the management of nitrogen Developed in collaboration with the WWF based on the NF30-001 public standard, available online for the benefit of all the and water in relation to yield, defining the Italy, the University of Bologna and Tuscia outlining good practices for the respon- producers of durum wheat in the state. factors with a bigger impact on both and University, the Charter contains 10 rules sible farming of wheat at all stages, tak- During 2019, the Agronomic Guide, de- identifying the appropriate tools to opti- designed to guarantee the ever-increas- ing into account the positive and nega- veloped in collaboration with Agrifood mise their use. ing quality of the products, support the tive effects deriving from soil cultivation.

PURCHASES OF COMMON WHEAT AND COMMON WHEAT FLOUR FROM GROWERS WHO HAVE SIGNED UP TO THE “CARTA DEL MULINO” Number of growers and farm holdings Tonnes of wheat grown that use the Carta del Mulino Italy 267 28,993 France 200 36,632 Other 38 14,924 Total 505 80,549

PURCHASES OF COMMON WHEAT FLOUR FROM GROWERS IN FRANCE WHO HAVE SIGNED UP TO THE “CARTA DI HARRYS” Number of growers and farm Tonnes of wheat grown holdings that use the Carta di Harrys France 378 65,493 Total 378 65,493

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RYE AND RYE FLOUR TOMATOES

Barilla’s supply chain for rye, the main sustainable agronomic practices, in en- In Italy, Barilla buys tomatoes primar- This peculiarity allowed Barilla, in 2018, ingredient of crispbread recipes, has an vironmental terms as well as from the ily from producers operating in the Po to conduct an LCA study on the harvests excellent environmental profile based point of view of agricultural yield, have Valley who apply mechanical harvesting of the last decade, which showed a con- on two factors: farming does not re- been well-established for years. techniques. tinuous reduction over the years of the quire a high use of water and fertilisers; use of water resources and the emission Since 2015, the Group has committed of gas to and hothouse, in line with the itself to buying tomatoes from Global criteria of the Barilla Code of Sustainable RYE G.A.P certified producers who guaran- Agriculture. Total tonnes Tonnes purchased from the local market tee the application of sustainable and re- purchased sponsible agricultural practices. To date, t. t. % 98% of tomatoes are purchased from 98% Global G.A.P certified producers. producers Global 2019 2018 2019 2018 2019 2018 G.A.P certified In the United States, the tomatoes pur- Sweden 33,153 41,521 31,595 37,950 95% 91% chased and processed for Barilla by LiDe- Total 33,153 41,521 31,595 37,950 95% 91% stri come from Californian producers, who apply mechanical harvesting practices.

RYE FLOUR In addition, the Californian tomato pro- cessing industry is characterized by a Total tonnes Tonnes purchased from the local market purchased strong cooperative bond with farmers.

t. t. %

2019 2018 2019 2018 2019 2018 TOMATOES Total tonnes Tonnes purchased from the local market Sweden 534 603 534 603 100% 100% purchased

Germany 21,896 21,315 21,896 21,315 100% 100% t. t. %

Italy 371 324 0 0 0% 0% 2019 2018 2019 2018 2019 2018

France 305 343 0 0 0% 0% Italy 49,461 57,402 49,461 57,402 100% 100%

Russia 494 343 494 343 100% 100% North America 10,313 10,710 10,313 10,710 100% 100%

Total 23,600 22,927 22,924 22,261 97% 97% Total 59,774 68,112 59,774 68,112 100% 100%

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VEGETABLE OILS NEW BARILLA “PESTO ALLA GENOVESE”

The Group uses sunflower oil, rapeseed To date, 97% of sunflower seed oil pur- In 2019, Barilla decided to perfect one of the key products of its portfolio, the oil and soybean oil. chased comes from producers that meet Pesto alla Genovese, which reached an important milestone in terms of flavour these criteria. and the environment. Parmigiano Reggiano DOP was added to the Barilla Pes- As regards sunflower oil, mainly used in to alla Genovese; this ingredient is the star of the new recipe, alongside basil. Italy, the Group promotes its produc- In Italy, Barilla also uses soybean oil, pur- The two ingredients are universally recognised and appreciated throughout the tion in rotation with durum wheat. In chased entirely from producers who world; they are, therefore, an expression of the know-how of the Parma region, this respect, Barilla has launched a num- meet the requirements of the CSQA DTP which leads the way in tradition, innovation and sustainability in the food sector. ber of projects with farmers to establish 112 standard. The ingredients of the new Pesto alla Genovese recipe are a call-out to the Emil- the best agricultural practices for sun- ia region, the true engine of culinary Made in Italy. flower cultivation, in accordance with Also with regard to rapeseed oil, which is Each year, approximately 3,000 tonnes of basil (98% of the total production) are the principles of the Barilla Sustainable particularly widespread in France, Barilla produced in Rubbiano (Parma, Italy). At this production site, the raw materials Agriculture Code. has launched several projects in collab- are processed and cooked using the most cutting-edge technology, which oration with suppliers to define how to has enabled the facility to be labelled as innovative. From an environmental

In particular, Barilla is committed to buy- apply the principles of sustainable agri- point of view, in this plant, the largest sauces plant in Europe, in 2019, CO2 emis- ing sunflower seed oil from producers culture set at Group level. sions were reduced by a further 7%; water consumption fell by 9% and over who are certified to the CSQA or ISCC+ 95% of waste was recycled. This information and much more are available for DTP 112 standard, which guarantee sus- all consumers: in fact, for more than 5 years, Barilla has placed at the disposal tainable production in environmental, of consumers another innovation: the digital platform Guardatustesso (Look for economic and social terms, or which Yourself), which makes it possible for everyone interested to virtually access the adopt the HORTA Girasole.net® platform. production facility, to discover, in full transparency, the care and attention that goes into every stage of the process, from the field to the table.

VEGETABLE OILS Find out more: www.barilla.com Total tonnes Tonnes purchased from the local market purchased

t. t. %

Pantone Pantone 2019 2018 2019 2018 2019 2018 1795 C 295 C

Sunflower oil 39,254 39,652 5,955 8,775 15% 21%

Rapeseed oil 8,648 8,950 4,761 4,308 55% 48%

Total 47,902 48,602 10,716 13,083 22% 27%

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SUPPLY CHAINS WITH POTENTIAL SOCIAL ISSUES COCOA To further safeguard the supply chain, the Group buys cocoa only from sup- The cocoa production and supply chain pliers who have signed up to the World The Group’s procurement system also the Group is inspired by. Lastly, a bind- potentially features high social and hu- Cocoa Foundation, a non-profit organi- includes supply chains that present po- ing requirement for all supply contracts man rights concerns. sation engaged in the responsible devel- tential social issues. In particular, Barilla is the supplier’s acceptance of the Code opment of the sector. has identified potential issues in the co- of Ethics. In 2018, through the Pan di Stelle brand, coa, cane sugar and promotional gadget the Group launched a collaboration CANE SUGAR and item supply chains related to the use programme with the main supplier of child labour and the failure to respect Barry Callebaut and its Cocoa Horizons Also with regard to the cane sugar pro- human rights. Foundation, committed to improving duction and supply chain, Barilla has the living conditions of growers’ com- identified potential critical social issues, The company only deals with suppliers munities in West Africa. considering the geographical areas in who hold certifications issued by inde- which this raw material is produced. pendent organisations that ascertain This collaboration led to the launch of a compliance with international ethical project called Un Sogno Chiamato Ca- cane sugar and social standards. cao (A Dream Called Cocoa), with the 100% goal of improving the living conditions suppliers are certified in Furthermore, the Group requires its sup- of cocoa grower communities through accordance with pliers to register with the internation- training courses, programmes support- the SMETA standard al Sedex platform, verified quarterly, in ing schooling, initiatives to strengthen order to ensure full compliance with the role of women and activities for the the ethical and social standards that protection of minors and of health, and To protect itself from the critical issues training of the growers themselves. associated with this supply chain, Barilla purchases cane sugar solely from SME- 2019 2018 of cocoa TA (Sedex Members Ethical Trade Audit) 94% certified suppliers. Suppliers deemed to be at potential risk is purchased supporting the 83 83 of violating human rights Cocoa Horizons Foundation and the Transparence Cacao Suppliers exposed to the risk of violating programme human rights who hold independent third 75 71 party certifications or audit reports verifying compliance with ethical and social standards Aside from the cost of the raw material, Percentage of suppliers who hold an additional share is paid to support independent third party certifications or audit 90% 86% these projects. In 2019, there was a reports verifying compliance with ethical and significant increase in the quantities of social standards cocoa purchased, reaching 94%.

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“A DREAM CALLED COCOA”

A dream called cocoa shares the Pan di Stelle's commitment to improve the life of cocoa farmers communities, while supporting the projects of the Cocoa Horizons Foundation since 2015. The cocoa used for the Pan Di Stelle products is purchased entirely from Barry Callebaut, recognizing a prize for each supply: it means that in addition to the cost of the raw material, an additional fee is donated to projects of the Cocoa Horizons Foundation. These are projects in support of the local community, such as for example school education programs; training for the growers themselves, to obtain better and better cocoa; as well as promoting a culture of protection of mi- nors and health. In addition, two projects have been fully funded since 2017.

• the construction of a well to give the inhabitants of Djangobo, in the Ivory Coast, clean and drinking water. Thanks to this project, the over 7,000 inhabitants of the country, 3,000 of which are children, now have water to drink, cook, irrigate and cultivate. Lastly, the creation of the well allows the girls to be freed from the task of leaving the village to get water, giving them the opportunity to attend school; • the construction of a school in the city of Dahiri, in Ivory Coast, which allows over 300 children from the village the opportunity to learn to write and read.

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5.2 In addition, the guidelines set forth spe- • genetic engineering or cloning of ANIMAL WELFARE cific standards with which the breed- farm animals and/or their progeny is not ers of the Barilla production chains allowed; must comply. Specifically: • breeds must be selected based on traits that improve wellbeing, rather than GUIDELINES ON ANIMAL WELFARE • all animals farmed along the produc- only to increase productivity. tion chain must have appropriate access to feed and water, so that their needs are Compliance with these standards, For years, Barilla has endeavoured to The Board defines the long-term objec- met and aggression is reduced; which is periodically checked with spe- ensure that all suppliers of raw mate- tives, the annual objectives, and is respon- cific audits, forms nowadays an integral rials of animal origin comply not just sible for checking that such objectives • densities must guarantee animal part of 100% of contracts with suppliers with legal requirements, but also with are being reached. The relations with the welfare and comfort and the animals of eggs, meat and fresh milk around the the highest animal welfare standards production chains to guarantee the prop- should be provided with appropriate en- world. If the supplier does not comply and criteria. er implementation in daily operations riched environments, making it possi- with the standards, Barilla has set up a To support this commitment, the Group are managed by Global Supplier Quality ble for them to express species-specific plan to restore compliance depending has drafted, in collaboration with the Management and Global Purchasing Unit. behaviours; on the severity of the case. organisation Compassion in World Farming (CIWF), the Barilla Guidelines In particular, in the guidelines the Group • routine mutilations must be avoided, if In addition and in order to train people on Animal Welfare. Barilla pays particu- recognises the importance of respect- not absolutely necessary to preserve the on animal welfare, Barilla organised an lar attention to the definition of precise ing the physical and mental welfare of animals’ welfare; in-company training course, held by the purchasing criteria with reference to all animals, as well as their ability to ex- organisation Compassion in World Farm- animal-origin production chains, with press species-specific behaviours. • animals must always be transported in ing (CIWF) to all employees involved in special focus on large-volume produc- ways that minimise potential causes of the management of the supply chain, tion chains, such as those for eggs, For this reason, it promotes the respect stress and limit the duration of travel as in particular in the areas Global Sup- meat, fish, and dairy products originating of the Five Animal Freedoms: much as possible. Transport lasting more plier Quality Management and Global from Europe, North and South America, than 8 hours must always be avoided; Purchasing Unit. Russia, and Turkey. • Freedom from hunger and thirst; • the animals must always be stunned The Animal Welfare policies form an in- • Freedom from discomfort; before being slaughtered; tegral part of corporate strategy and are managed by the Good for You, Good • Freedom from pain, injury • antibiotics must always be used re- for the Planet Board, consisting of the and disease; sponsibly, and their use must be reduced Heads of the departments that are most whenever possible. Prophylactic use of involved, namely: Global Communica- • Freedom to express normal antibiotics is forbidden; tion and External Relations, Global Sup- species-specific behaviour; ply Chain, Global Marketing and Glob- • the use of growth hormones is not al Research, Development and Quality. • Freedom from fear and distress. allowed;

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PROCUREMENT OF BARN EGGS Nowadays, the guidelines cover 100% PROCUREMENT OF FRESH MILK il benessere animale - National Refer- of the pork and beef supplies for sauces ence Centre for Animal Welfare). Barilla believes that the confinement of and filled pasta produced in Italy (100% Fresh milk is a key ingredient for many hens is a practice that harms the ani- of the total meat used by Barilla globally). Barilla products and has always been pur- The certification process required the mals’ welfare; it has therefore decided to chased by the Group from local, tracea- analysis of various parameters, such as abandon this method of farming along PROCUREMENT OF CHICKEN MEAT ble and controlled production chains. stall management, structure assessment, the supply chain and to use, as a mini- measurement of specific animal-related mum, only barn eggs. Barilla does not purchase chicken meat In 2018, Barilla, in partnership with its parameters, biosafety and biosecurity, for the production of its products. main supplier, launched a certification and large-scale risk assessment. Since 2012, all eggs used in the Pasta process in accordance with the ani- At the end of 2019, 83% of the volumes ranges Le Emiliane and La Collezione, Nevertheless, it commits to guarantee mal welfare assessment and biosecuri- of fresh milk purchased globally by the and in the bakery products of Mulino that any future purchase will originate ty system for cattle breeding (beef and group originated from farms certified in Bianco, Pavesi and Pan Di Stelle are from suppliers who undertake to imple- dairy cattle) developed by the CReNBA accordance with the CReNBA standard exclusively barn eggs. Starting in 2017, ment specific animal welfare protection (Centro Nazionale di Riferimento per for animal welfare. the eggs used in the products under the practices. Specifically: Harrys trademark are also barn eggs. In 2019, all the remaining brands in all • transition to the breeds that are ap- geographical areas involved completed proved by the international organisation the transition. RSPCA or by the Global Animal Partner- ship (GAP) based on measurable animal PROCUREMENT OF MEAT PRODUCTS welfare improvement results;

Since 2014, Barilla has launched an im- • reduction of densities to a maximum portant project with meat suppliers for of 30 Kg/m2, forbidding the use of the production of sauces and filled pasta cages; aiming to develop new guidelines on an- imal welfare that cover all procurement • farming in enriched environments that of pork and beef. meet the new GAP standards, including bedding and light management; These guidelines comply with all the aforementioned practices. • elimination of pre-stunning manipula- tions, instead using irreversible stunning The suppliers signed the joint document systems; in 2015 and the practices are already being implemented. In addition, during • guaranteeing compliance with the 2018, Barilla planned the completion of standards defined by Barilla for the pro- the implementation of all the practices tection of animal welfare, by undergoing for both production chains. external audit activities.

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ANIMAL-ORIGIN SUPPLY CHAINS: A project for the reformulation of prod- to identify possible areas of improve- EGGS, PORK AND BEEF ucts containing eggs was launched in ment in line with the parameters includ- the United States, which led to a pro- ed in the Business Benchmark on Farm gressive decrease in the use of this in- Animal Welfare (BBFAW). EGGS AND EGG PRODUCTS of eggs and egg products in its produc- gredient. The remaining volumes have tions chains in France and Italy, which being already all converted to barn farm- This analysis showed an improvement Barilla uses eggs and egg products for its represent 92% of global procurement ing during 2019. in compliance with the BBFAW and, as bakery products and fresh pasta shapes. of this raw material. Important progress a result of the main deviations observed, Since 2012, the Group has started a has been achieved by Barilla in Brazil, Lastly, Barilla performs periodic audits Barilla defined in 2019 an improvement process of conversion of the produc- the United States and Turkey, where the on all barn egg producers, to check that plan to be implemented in collaboration tion chain, through the gradual aban- adoption of new types of sustainable they actually comply with the alternative with farmers in the coming years. donment of caged breeding and fa- farming was completed in 2019. In Rus- farming systems. To date, these checks vouring purchases from producers who sia, the use of eggs actually stopped in have been performed on European sup- With reference to procurement of pork, raise hens in barns. the first trimester of 2019, due to the end pliers. With reference to other, non-EU the Group has started a process shared of biscuit production. countries, the Group uses suppliers who with the organisation Compassion in Thanks to this commitment in France comply with national farming schemes. World Farming and with its Italian sup- and Italy, all eggs purchased originate In addition, Barilla performs periodic pliers in order to exclude the practice of from barn farms, where the hens have audits of all its egg and egg product In the absence of national schemes, tail-docking along the production chain. access to enriched environments, such suppliers, in order to guarantee that sus- an Animal Welfare Officer is appointed as perches and bedding. During 2018, tainable farming practices in line with the to perform audit activities on a sample This process aims at improving welfare Barilla introduced a digital system, called Group’s animal welfare policy are actually of farmers, in order to verify their com- conditions for the animals, increasing eggs.barilla.com, to trace the origin being adopted. pliance with a recognised guarantee awareness among breeders on this sub- scheme. ject and promoting the development of alternative breeding practices that EGGS AND EGG PRODUCTS PORK AND BEEF can reduce the risk of accidents linked Percentage of to cannibalism and aggression among Total tonnes Tonnes purchased from the local barn eggs and purchased market barn egg products Pork and beef are ingredients used in the animals. purchased Barilla ready-made meat sauces and filled t. t. % % pasta produced in Italy, where 100% of Following an initial stage of checking 2019 2018 2019 2018 2019 2018 2019 2018 globally purchased meat is used. and improving environmental standards Italy 18,348 18,918 18,348 18,918 100% 100% 100% 100% in all pigsties, Barilla involved the farmers France 4,110 4,181 2,870 2,207 70% 53% 100% 100% The Group, in line with its animal wel- in specific training sessions on correct United States 17 204 17 204 100% 100% 100% 0% fare policy, purchases meat originating breeding practices for long-tailed pigs. from producers who comply with the Brazil 450 1,334 450 1,334 100% 100% 100% 0% five animal welfare freedoms. In the menawhile, between the end Russia 0 14 0 14 0% 100% - 0% of 2016 and the beginning of 2017, Turkey 29 30 0 0 0% 0% 100% 0% In 2018, Barilla completed the analysis the Group carried out tests and eval- Total 22,954 24,680 21,685 22,676 94% 92% 100% 94% of its meat production chain in order uations on the best materials for the

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environmental enrichment of livestock In the coming years, Barilla will work BUSINESS BENCHMARK farms, in order to better meet the behav- actively with its suppliers to implement ON FARM ANIMAL WELFARE SURVEY ioural needs of the animals and prevent these breeding standards throughout aggressiveness. the supply chain by 2020. In 2019, Barilla has performed a second survey which involves Italian meat suppliers, where 100% of the volumes used by the Group originate, in order BEEF to check compliance with the parameters included in the Business Bench- mark on Farm Animal Welfare (BBFAW). The following results emerged from Total tonnes Tonnes purchased the analysis performed in 2019: purchased from the local market PORK t. t. %

2019 2018 2019 2018 2019 2018 • The gestation cages for the sows are used for the first 4 weeks of gesta- tion; subsequently all the animals are transferred into collective boxes for Italy 918 750 918 750 100% 100% the remaining period; • gestation cages were completely eliminated from 10% of the farms, even United 0 4 0 4 0 100% States for the first 4 weeks; • 70% of the animals bred are not subject to tail-docking and have access to Total 918 754 918 754 100% 100% straw for the entire duration of the production cycle, while for the remain- ing part tests are underway to eliminate this practice by 2020; • all (100%) pigs are transported from the farm to the slaughterhouse in under 8 hours, including loading and unloading to and from the vehicles; PORK • all (100%) of products that contain pork originate from animals that are Total tonnes Tonnes purchased effectively stunned before being slaughtered. purchased from the local market BEEF t. t. % • All (100%) cattle are transported from the farm to the slaughterhouse in 2019 2018 2019 2018 2019 2018 under 8 hours, including loading and unloading to and from the vehicles; Italy 2,400 2,096 2,400 2,096 100% 100% • all (100%) of products that contain beef originate from animals that are effectively stunned before being slaughtered; United 0 12 0 12 0 100% • all (100%) calves bred along the Barilla production chain are not subject to States routine mutilation of any type (horns, castration, tail) and do not present Total 2,400 2,108 2,400 2,108 100% 100% skin lesions; • all (100%) calves are bred using straw bedding in the stalls. During 2020, the results of the analysis performed will be checked again with the support of an independent third-party body and an improvement process for 2021 will be defined.

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OTHER PRODUCTS where approximately 83% of the global OF ANIMAL ORIGIN supplies of milk and 93% of dairy prod- EXTERNAL ACKNOWLEDGEMENTS ucts are consumed. Barilla recipes use not just eggs, beef The seventh report of the global benchmark on farm and pork, but also other products of ani- The Group purchases this ingredient animals, BBFAW (Business Benchmark on Farm Animal mal origin, such as wild-caught fish, milk, mainly in Northern Italy from a single Welfare) was presented in London in February 2019. An and dairy products. supplier who provides over 90% of the initiative that grows each year, with a total number of an- milk consumed globally and 25% of alysed companies that went from 110 in 2017 to 150 in 2018, in 23 different With reference to these ingredients, dairy products. Countries. The BBFAW benchmark is, therefore, becoming an increasingly the Group is committed to promoting popular tool, used by investors and industry stakeholders to evaluate the purchases in line with what is defined The latter is actively engaged in the ap- policies, the performance and the transparency of food businesses with within the animal welfare policy and plication of the Barilla Animal Welfare regard to animal welfare. preferring supplies from breeders op- Guidelines and has been awarded the In particular, to guarantee clear and transparent communication, the BBFAW erating in the countries where Barilla certification for Animal Welfare in ac- analyses and assesses the public communications of industry-leading food is present. cordance with the standard defined businesses at international level, evaluating how they manage and commu- by the CReNBA. nicate their policies and practices concerning the welfare of livestock. With regard to milk, Barilla is committed to replacing powdered milk in its pro- In the 2019 edition of the Benchmark, Barilla confirms its leadership in duction processes with fresh milk from caring for animal welfare, the only Italian company to reach the third level local, traceable and certified production of the pyramid defined by the BBFAW. chains. Fresh milk is used mainly in Italy, An important result achieved thanks to detailed and transparent communica- tion on the subject of animal welfare, which includes not only defining more concrete objectives, but also communicating the progress made from year OTHER PRODUCTS OF ANIMAL ORIGIN to year to achieve them.

Total tonnes Tonnes purchased purchased from the local market Barilla Brazil has been awarded with the Henry Spira t. t. % Award 2019 by the HSUS - Humane Society of the United States (part of organization of HSI - Humane 2019 2018 2019 2018 2019 2018 Society International) which rewards companies that have been achieved the Wild-caught animal welfare policies in advance in the USA and worldwide. 46 68 - - 0% 0% fish By reaching this goal, Barilla is setting an important precedent for other com- Butter 7,625 7,592 1,057 1,136 14% 15% panies, many of whom have made public commitments to go cage-free but have yet to make significant progress. This is especially important in Brazil, Fresh milk 3,333 3,161 3,333 3,161 100% 100% where Barilla has publicly encouraged other food companies to create and Dairy 7,421 7,303 3,718 3,945 50% 54% implement cage-free egg policies. products

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5.3 RAW MATERIALS USED IN PACKAGING (t) Purchased PRODUCT PACKAGING in accordance with 2019 2018 the sustainable packaging principles Flexible film 23,883 23,937 96%

Product packaging plays a fundamental • the assessment of the environmen- Glass 67,616 63,349 100% role: it protects the product, guarantees tal impact of the materials, through Paper and cardboard 141,294 141,497 100% its preservation over time, and allows it Life Cycle Assessment (LCA), thanks for packaging to be consumed in a place other than to the development of the LCA Pack where it was produced. Design Tool: a calculation instrument that makes it possible to assess environ- RECYCLE READY PACKAGING In 2016, Barilla issued the Sustainable mental performance and to compare 2019 2018 Packaging Principles, a set of principles alternative solutions while designing which require: new packaging; Recyclable packaging placed 99.7% 99.4% on the market • the quantity of packaging materials • the use of materials from renewable Packaging with instructions 99% 99% to be reduced, using all available tech- sources not in competition with the on recycling methods nology and innovations on materials food chain. Packaging produced 35% 35% offered by the market; minimising the with recycled materials use of composite packaging materials, The materials used for packaging are: opting for materials consisting of ho- paper, cardboard, glass, and flexible mogeneous components that can be film. disposed of more easily after consump- tion; seeking the optimal logistics that In 2019, a more challenging objective will maximise saturation in storage and – the use of “zero-impact packaging”, during transport; that requires the use of renewable or re- cycled resources for the production of • the use of recyclable materials, where packaging materials – was added to the the product’s safety and organoleptic existing goal of “zero-waste packaging”, characteristics allow it; achieved thanks to the reduction at source of unnecessary materials and to the • the use of paper and cardboard from recyclability of materials. responsibly managed forests, using virgin fibre materials originating from 99.7% of our packaging is recyclable and production and supply chains that are we are working to reach 100% in the managed in accordance with the FSC following months. or PEFC standards;

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In the context of sustainability of prod- in two important initiativesto promote THE BARILLA READY PASTA RECYCLING PROGRAM uct packaging, Barilla Group takes part product packaging recycling:

In 2019, Barilla continued its partnership with TerraCycle®, an innova- tive company involved in the recycling of plastic materials, to provide its consumers with a simple and free service for recycling Barilla ready-made In the United States, Barilla became a member of the meal packaging. Sustainable Packaging Coalition, a working group that involves producers, distributors, public bodies and aca- Through this initiative, called Ready Pasta Recycling Program, the Group is demics in promoting the wider use of more sustainable therefore committed to providing people who choose Barilla products with packaging materials. innovative tools to reduce their environmental impact.

The partnership ensures that, once collected, the pasta packaging is cleaned and melted into plastic which can then be reused to make new sustainable products. Furthermore, for every kilo of waste sent to TerraCycle®, con- sumers have the opportunity to contribute 1 dollar in support of a non-profit organisation, school or charity of their choice. The Group has signed up to the US How2Recycle labelling system, which promotes clear and simple Thanks to this initiative, Barilla’s Pasta Pronta packaging is now 100% recycla- communication with consumers on recycling product ble and makes a tangible contribution to reducing the quantities of potential- packaging. ly recyclable materials disposed of in landfills rather than being reused.

Pantone Pantone 1795 C 295 C

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5.4 In order to ensure transparent communi- Change, Forest and Water questionnaires. PRODUCTION cation of its environmental performance, During 2019, the Group obtained an “A-” Barilla adheres to the initiatives promoted rating (on a scale ranging from a mini- by the Carbon Disclosure Project (CDP), mum of D- to a maximum of A) in the Cli- an independent international organisation mate Change questionnaire; it received a that provides undertakings, local author- “B” rating in the Forest questionnaire, and Barilla continuously improves produc- ISO 14001, for 90% of the Group’s plants. ities, governments and investors with a a “B” rating in the Water questionnaire. tion processes to limit the environmen- Moreover, with particular reference to global system that measures and reports tal impact of its plants. energy resources, Barilla has implement- on environmental impact. What is more, an “A” rating in the Supplier ed a certified system for monitoring and Engagement questionnaire was awarded, Therefore, a solid integrated environ- controlling consumption, in accord- Each year, the Group participates in the thus gaining the Supplier Engagement mental management system has been ance with the ISO 50001 standard, for CDP Programme by filling in the Climate Leader qualification. implemented in compliance with stand- 68% of production plants. ards UNI EN ISO 14001, UNI EN ISO 50001, UNI EN ISO 45001. 93% ENERGY CONSUMPTION AND EMISSIONS Furthermore, the environmental man- of production volumes agement system has been certified by manufactured in In order to guarantee better energy of high-energy efficiency refrigeration an independent third-party body in ac- ISO:14001-certified plants performance, Barilla regularly invests units, compressors and air conditioning cordance with the international standard in modernising its production facilities systems. and implementing new technologies. Lastly, further energy efficiency meas- In particular, during 2019, the Group in- ures were taken regarding lighting sys- PRODUCTION SITES CERTIFIED ISO 14001 vested over 8.6 million euros in the pro- tems, involving the installation of new tection of the environment. solutions based on LED technologies. ITALY 14 100% This investment allowed the group REST OF to implement, over the years, actions Over 8.6 10 million euros invested EUROPE 100% such as the replacement of burners, AND RUSSIA improvement of the machines’ thermal in environmental insulation, and the installation of heat protection 3 AMERICA 67% recovery systems.

In addition, improvements were made to Thanks to these investments, the Group AAA 1 0% the general systems of the production implemented the Energy Saving Project plants with the use of ovens with sched- (ESP), in which each Group plant under-

TOTAL PLANTS ISO 14001-CERTIFIED PLANTS uled switch-off, the use of efficient water takes to research, each year, new pro- pumps, the installation and automation jects to reduce energy consumption.

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ENERGY USED PER TONNE OF FINISHED PRODUCT (GJ/T) The assessment is performed compar- In 2019, Barilla consumed 5,532,225 ing consumption before and after im- GJ of energy (approximately 2.5% more 2019 2018 plementation of a specific approved compared to 2018; this change is mainly 3.09 3.10 project. The results are monitored on due to an increase of over 2% in produc- a yearly basis and the best solutions are tion volumes), of which approximately shared within the company so that they 20% from renewable sources. 67% use recorded an increase of 3% and 2%, may be extended, where possible. of the electricity purchased respectively, when compared to 2018. The increase of scope 1 emissions is from the grid originates from attributable to the increase in natural ANNUAL ENERGY USE BY SOURCE (GJ) renewable sources gas consumption, while that related to 2019 2018 with GO certificates. scope 2 emissions is due to the overall increase in indirect energy use. DIRECT USE 2,554,258 2,461,488

Energy from non-renewable sources With regard to the electricity purchased, Natural Gas 2,256,765 2,114,897 we should point out that a significant -30% Fuel oil 2,964 6,328 share, approximately 67% of total use, has reduction in greenhouse a Guarantee of Origin (GO) certificate, an Diesel 898 1,040 electronic certification that attests the re- gas emissions per tonne Petrol - - newable origin of the sources used. of finished product Self-produced energy through cogeneration During 2019, greenhouse emissions from since 2010 Thermal Energy 153,832 197,271 direct (scope 1) and indirect (scope 2) Electricity 138,700 141,634 Energy from renewable sources GREENHOUSE GAS EMISSIONS BY SCOPE (t CO2 eq) Photovoltaic electricity 1,099 319 2019 2018 INDIRECT USE 2,977,967 2,937,184 Scope 1 181,673 175,761 Electricity 2,345,703 2,272,893 Emissions from use of fossil fuels 153,796 144,454 from non-renewable sources 1,266,916 1,038,781 Emissions from owned co-generation plants 27,853 31,300 from renewable sources 1,078,787 1,234,112 Emissions from photovoltaic systems 24 7 Thermal energy 617,727 651,657 Scope 2 200,975 197,094 from non-renewable sources 617,727 651,657 Indirect emissions due to electricity used 154,835 148,763 from renewable sources - - Indirect emissions due to thermal energy produced by external co-generators 45,982 48,194 Energy for cooling 14,537 12,633 Indirect emissions due to cooling energy from non-renewable sources 14,537 12,633 produced by external co-generators 157 137 from renewable sources - - Total 382,648 372,855

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GREENHOUSE GAS EMISSIONS PER TONNE OF FINISHED PRODUCT

(t CO2 eq) WASA 2019 2018 In 2019, Wasa has fully compensated its CO2 emissions. 0.21 0.21 This is the result of the work done by monitoring emissions throughout the products’ life cycle, the progressive reduction of emissions through energy saving programmes, logistics pro- jects and purchasing electricity entirely from renewable sources with a Guar- antee of Origin certificate. Residual emissions following the implementation of the reduction plans stood

at 104,481 tonnes of CO2, have been fully compensated through projects with a VCS (Voluntary Carbon Standard) certificate. VCS is the most commonly used voluntary emission offsetting programme in the world; its projects must follow a strict assessment process to obtain certification.

In particular, Wasa contributes to the following projects:

• Madre de Dios to safeguard the Peruvian rainforest, one of the main biodiversity centres in the world;

• a project aiming to guarantee access to solar energy in rural areas of India.

Find out more: www.wasaco2.com

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GRAN CEREALE HARRYS

In 2019, Gran Cereale completely offset the CO2 emissions of its production In line with the brand’s goal to offer products that stand out by chain, through a VCS-certified process which contributes to the protection their softness and a responsible production and supply chain of the Brazil Amazon forest, at the island of Marajo. By putting a stop to forest (Moelleux et Responsable), Harrys undertook projects aiming exploitation, the absorption of CO2 by the safeguarded forest is preserved, to progressively reduce energy use and increase the use of saving 2,500 hectares from deforestation. electricity from renewable sources (-22% compared to 2009); reduction of water consumption in the plants (-17% since 2009); the increase of recycled Moreover, the concrete effort in favour of the environment and biodiversity waste, reaching 99.4%; and the partnership with TerraCycle to offer recycla- translated into joining the national Mosaico Verde (Green Mosaic) Campaign, ble packaging. Moreover, in 2019 the brand decided to offset the remaining promoted by Legambiente and AzzeroCO2, to restore six wooded areas in emissions, reaching full offsetting in early 2020. the North and South of Italy. Emissions are offset through membership of two CVS-certified projects: Thanks to the initiative “I boschi di Gran Cereale” (The forests of Gran Cereale), actions are carried out to safeguard, protect and restore six existing • Floresta da Portel to safeguard one of the Planet’s richest ecosystems wooded areas that have been damaged by natural disasters, fire, hydrogeo- that is threatened by frenzied deforestation. Furthermore, the project will logical instability and the presence of allochthonous species, which, as they contribute to creating work opportunities for the local communities. are not adapted to the local conditions, weaken the wood (Val di Sella, Tren- to; Regional Park of Portofino, Genoa; National Park of the Foreste Casenti- • Solar energy projects in India that play a fundamental role in the Coun- nesi, Florence; Regional Park Valle del Treja, Rome; National Park of the del try’s transition to an economy with low carbon emissions. Also in this Gargano, Foggia; National Park of the Pollino, Potenza), for a total surface case, the projects will contribute towards the creation of more work op- area of 13 hectares and approximately 3,200 plants and shrubs. portunities at local level.

Find out more: www.grancereale.it Find out more: www.harrys.fr

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MOBILITY AND TRANSPORT SCIENCE-BASED TARGETS (SBTi)

Science-Based Targets are objectives to reduce green- For several years, Barilla has been for the transport of durum wheat by house gas emissions, defined in line with the decar- committed to reducing the amount of train from the Incoronata terminal in bonisation level required to maintain the increase of wheat and products, in general, trans- Foggia to the Parma plant. Under the global temperatures below 1.5°C, as defined in the ported by road and switching to means agreement, each week, 30 trains will Fifth Assessment Report of the Intergovernmental Panel on Climate Change of transport which have a lower envi- transport durum wheat from Capitana- (IPCC), and included in the Paris Climate Agreement (COP21). ronmental impact. In Sweden and Ger- ta to Emilia, for a total of approximately many, the Group increased the share of 30,000 tonnes of durum wheat. The SBTi initiative stems from the collaboration of Carbon Disclosure Pro- products transported by train. ject, United Nations Global Compact, World Resource Institute and WWF, The modernisation of the company’s with the intent to guide companies in defining ambitious objectives for the In Italy, Barilla uses rail transport to move fleet also plays an important part in mitigation of climate change, to guarantee that their Climate Action is in line durum wheat from collection points at Barilla’s strategy to reduce air pollut- with scientific objectives. the port of Ravenna and Polesella sta- ant emissions. In particular, the Group tion (Rovigo). supplemented its fleet with 3 new In 2019, Barilla submitted its own reduction objectives: tractor units powered by liquid meth- Thanks to the Treno del Grano (Wheat ane gas during the European Week of • 25% REDUCTION of absolute Scope 1 and 2 greenhouse gas emissions by Train), the railway hub inaugurated in Sustainable Mobility. 2030 (compared to 2017); 2015 for the transport of durum wheat to the largest pasta plant in the world at As part of the vehicle fleet renewal process, • 26% REDUCTION of absolute Scope 3 greenhouse gas emissions by 2030, the Parma site, 3,300 fewer lorries are the Group also purchased 83 hybrid-pow- per tonne of finished product (compared to 2017). on the road. ered vehicles with an integrated combus- tion and electric engine, and installed 31 The external validation Group confirmed that Barilla’s objectives are in line This action is supplemented by the col- charging stations in the parking areas of with the commitment required for a 2°C reduction. laboration, in early 2020, with Lotras the Pedrignano plant (Parma, Italy).

An initiative by:

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WATER USE WASTE

Barilla is pursuing the rational use of wa- These have allowed the Company to During 2019, the waste produced by the the management of waste. Nevertheless, ter resources in its production process- reduce its water requirement per tonne Group increased by approximately 33% Barilla expends continuous efforts to im- es. The Group has therefore carried out of finished product by 21% compared compared to 2018. This increase, main- plement projects that provide incentives several specific projects to reduce water to 2010. ly of non-hazardous waste, which rep- for the reduction of the waste produced consumption in its production facilities. resents approximately 99% of all waste and to adopt alternative recovery meth- produced, is due mostly to the launch of ods to disposal. WATER USAGE BY SOURCE OF SUPPLY (m3) several worksites for the construction of In fact, approximately 96% of the 2019 2018 new production facilities and to legislative waste produced in 2019 was taken changes in various countries concerning for recycling. From wells 1,521,444 1,480,996 From public water supply system 989,176 968,476 From other sources - - WASTE PRODUCED BY TYPE (t.) Total 2,510,620 2,449,472 2019 2018 Non-hazardous waste 39,816 29,700 3 WATER WITHDRAWALS PER TONNE OF FINISHED PRODUCT (m ) Hazardous waste 451 526 2019 2018 Total 40,267 30,225 1.40 m3 1.40 m3

In order to ensure a more responsible 4% recorded in 2018) were reused by WASTE PRODUCED PER TONNE OF FINISHED PRODUCT (t.) use of water resources, the Group pro- the Group after entering the production 2019 2018 motes water recycling and reuse prac- process. tices in production processes and in the 0.0225 0.0173 general services associated with its offic- es and production plants. -21% reduction in water In particular, during 2019, over 153,000 used per tonne of finished WASTE PRODUCED BY DESTINATION (t.) m3 of water (approximately 6% of the to- product since 2010 2019 2018 tal volume of water abstracted, against Non-hazardous waste 39,816 29,700

WATER DISCHARGED BY DESTINATION (m3) Recycling 38,064 28,081 2019 2018 Disposal 1,752 1,619 Into surface water 349,609 307,807 Hazardous waste 451 526 Into the sewerage system 715,878 689,023 Recycling 406 432 Total 1,065,488 996,831 Disposal 45 93

146 147 PEOPLE AND COMMUNITY

BARILLA PEOPLE 150

HEALTH AND SAFETY 163

TRAINING AND TALENT DEVELOPMENT 167

INTERNAL COMMUNICATION 171

TRADE UNION RELATIONS 172

SUPPORT TO COMMUNITIES 173 CHAPTER 6 PEOPLE AND COMMUNITY 2020 SUSTAINABILITY REPORT

6.1 BARILLA PEOPLE

Employees and associates, at all levels, environment, investing in their profes- BARILLA PEOPLE ON PERMANENT CONTRACTS are the soul of the company; each one sional growth, allowing them to balance BY REGION AND GENDER of them contributes to the creation of their work and private lives, embracing 2019 2018 2017 value through their role and tasks. and promoting diversity. Man Woman Total Man Woman Total Man Woman Total

Italy 2,944 1,055 3,999 2,942 1,001 3,943 2,903 973 3,876 The Group pays particular attention The activities designed and imple- to its human resources, ensuring that mented in this context form part of the Rest of Europe 1,834 947 2,781 1,838 954 2,792 1,790 968 2,758 they work in a safe and stimulating People Care project. America 405 181 586 379 172 551 362 169 531 AAA 181 87 268 198 82 280 202 79 281 Rest of the World 72 60 132 65 52 117 67 53 120 Total 5,436 2,330 7,766 5,422 2,261 7,683 5,324 2,242 7,566

Note: The personnel data shown in the following chapter relates to Barilla G. and R. Fratelli with the exception of Mexico, where 257 people were employed on permanent contracts in 2019, 182 people in 2018 and 215 people in 2017.

BARILLA PEOPLE ON FIXED-TERM CONTRACTS BY REGION AND GENDER 2019 2018 2017 Man Woman Total Man Woman Total Man Woman Total

Italy 67 86 153 99 92 191 107 78 185 Rest of Europe 106 84 190 123 88 211 108 54 162 America 0 0 0 0 0 0 0 0 0 AAA 1 1 2 0 0 0 0 0 0 Rest of the World 5 3 8 2 2 4 2 3 5 Total 179 174 353 224 182 406 217 135 352

Note: The personnel data shown in the following chapter relates to Barilla G. and R. Fratelli with the exception of Mexico, where 34 people were employed on fixed-term contracts in 2019, 85 people in 2018 and 58 people in 2017. Under national legislation in force in the United States, the distinction between permanent and fixed-term contracts does not apply: the em- ployment relationship can be interrupted at any time by both parties without any liability. For the purposes of this document, Barilla people in the United States are considered to be hired on a permanent contract basis.

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EMPLOYEES In order to promote a balance be- baskets for dinner, with menus that change BY AGE GROUP tween people’s private life and work, the every week. <30 YEARS Group continued to implement projects 11% launched in previous years, such as the WINPARENTING smart working and winparenting projects and the so-called time saving services. In the Parma office, in 2018 the Group launched the Winparenting project SMART WORKING aimed at employees with children from >50 YEARS 30-50 YEARS zero to 12 years of age: a tool designed to 38% 51% In 2013, Barilla introduced the smart work- support managers and parents through ing project, with the aim of promoting the every stage of parental leave, including development of a more inclusive work en- preparation, the whole period of leave vironment that is aware of people’s needs. and the eventual return to work. The initiative continued in 2019, when Barilla Group successfully consolidated Specifically, this is a sequential proce- this form of work, making the people dure that foresees a first, pre-leave, stage who used remote working more flexible - the preparation for the leave - followed BARILLA PEOPLE and responsible. by on-leave - the management of the BY LENGTH OF SERVICE absence - and, lastly, the return to work. Today, 20% of the company’s personnel can make use of remote working for up To support this process more effectively, to eight days a month. the Group has developed a site to provide employees with practical advice, guide- lines, and information on the relevant pa- 1,566 rental leave legislation, as well as events people benefited from the 39% and services available to parents. smart working programme WOMAN during the year Winparenting also includes the MAAM© 22% MAN training path for new mothers and fa- thers, which shares information about TIME SAVING SERVICES services and testimonies related to 18% each stage of parenting. The training Also with the goal of supporting people path boosts emotional skills, such as em- in daily activities that are not work-re- pathy, the ability to listen, team work, the 61% 78% 82% lated, the company introduced servic- creation of alliances; organisational skills, es defined as time saving, such as pack among which time and priority manage- 0 TO 15 YEARS 16 TO 30 YEARS OVER 31 YEARS collection, internal laundry service and ment; and innovative strong points, e.g. 49% 36% 15% the possibility of booking take-away problem solving ability and creativity.

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Lastly, also in the same context, in agreements with three nursery schools GENDER BALANCE 2019 once more Barilla confirmed its and kindergartens.

Barilla focuses on the promotion of female Today, 36% of Barilla executives and talents in all aspects of corporate life. managers are women.

BARILLA PEOPLE BY PROFESSIONAL CATEGORY 2019 2018 2017 of whom of whom of whom Total Total Total women women women Executives 174 39 172 36 163 33 Managers 642 251 620 249 612 237 White-collar 1,856 811 1,767 770 1,764 760 workers Blue-collar 4,915 1,249 4,998 1,242 4,958 1,241 workers Sales force 530 154 531 146 421 106 Total 8,117 2,504 8,088 2,443 7,918 2,377

SHARE OF WOMEN IN THE GLOBAL TALENT POOL

WOMEN MEN 45% 55%

154 155 CHAPTER 6 PEOPLE AND COMMUNITY 2020 SUSTAINABILITY REPORT

Gender equality is also safeguarded with work and local legislation, all employees RETURN TO WORK INDEX RETENTION INDEX forms of support to work-life balance. are entitled to parental leave, regardless Although not used in 2019, in accord- of their gender. 100% 20% ance with applicable regulatory frame- The data for parental leave relates to 89% of the company’s employees. Return to work index calculated as: (number of employees who have returned from parental leave/total number of employe- EMPLOYEES WHO TOOK PARENTAL LEAVE es who have used parental leave) Retention index calculated as: (total number of employees who are still employed twelve months after returning from leave/ 2019 total number of employees who returned from parental leave during the previous reporting year) Man Woman Total Executives 0 0 0 Managers 0 5 5 INCLUSION AND PROMOTION OF DIVERSITY White-collar workers 0 11 11 Blue-collar workers 0 7 7 Sales force 0 2 2 Equality, inclusion and diversity are in- experts that provide advice, vision, an Total 0 25 25 tegral parts of the Barilla corporate cul- external perspective and guidelines on ture, values and Code of Ethics, and an equality and inclusion: David Mixner, EMPLOYEES WHO RETURNED TO THE COMPANY important factor for its growth model author, expert in political strategies, civ- FOLLOWING PARENTAL LEAVE and way of doing business. il rights activist and consultant, and Lisa 2019 Kepinski, founder and director of the Man Woman Total In line with its fully inclusive approach, Inclusion Institute; and of an Operating Executives 0 0 0 Barilla does not tolerate any form of dis- Committee, made up of employees, Managers 0 7 7 crimination or exclusion on grounds of which formulate recommendations with White-collar workers 0 12 12 age, culture, ethnic origin, nationality, reli- regard to objectives, initiatives and im- Blue-collar workers 0 5 5 gious creed, origin, political opinions, civil provements, and monitor progress. status, gender, and sexual orientation. Sales force 0 1 1 The ongoing support of the Global The Group promotes and supports set- Total 0 25 25 Diversity & Inclusion Board (D&I Board), ting up Employee Resource Groups EMPLOYEES WHO RETURNED TO THE COMPANY FOLLOWING PARENTAL LEAVE that collaborates with the company to (ERG), i.e. interest groups created by AND WHO ARE STILL EMPLOYED, TWELVE MONTHS AFTER THEIR RETURN assess the current policies and internal employees for employees that focus on 2019 initiatives, to formulate recommenda- specific diversities. tions on possible improvements, to ap- Man Woman Total ply new initiatives, and to monitor and Currently, there are 15 ERG promoting Executives 0 0 0 measure the progress made, allows the various subjects. Managers 0 1 1 company to become a more valid mod- White-collar workers 0 3 3 el on issues of diversity and inclusion. Blue-collar workers 0 0 0 Sales force 0 1 1 The D&I Board is composed of an Total 0 5 5 Advisory Board of independent external

156 157 CHAPTER 6 PEOPLE AND COMMUNITY 2020 SUSTAINABILITY REPORT

ALLEANZA (United States), to support Latino and African- INSIEME (United States), to promote diversity and equal American minorities. opportunities in production plants.

ARMONIA (Greece), to promote diversity and equal PULSE (United States), to promote diversity and equal opportunities. opportunities in production plants.

RESPEITO (Brazil), to protect and respect personal differences BALANCE (Italy, France, Central Europe and the United States), in the workplace. to promote gender equality and the right work-life balance.

THISABILITY (Italy and France), dedicated to issues related to disabilities. BRIDGE (Russia), build and promote open, safe and inclusive workplace.

TOGETHER (Nordic countries), to promote diversity and equal opportunities.

CONNECT (AAA area), to promote a workplace that cultivates and respects the free expression of all faiths, religions or creeds. VOCE (Italy, France, Germany and the United States), to discuss LGBTQ+ issues.

HAND IN HAND (AAA area), to promote gender diversity and equal opportunities. WELCOME HOME (Italy), to promote a multicultural place of work.

INCLUSIVO (Canada and France), to promote an inclusive YOUNG (Italy), to support differences between different gene- place of work for all employees. rations in the company.

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OCCUPATIONAL INCLUSION PROGRAMMES With regard to the rights of LGBTQ+ with LGBTQ+ employees, suppliers, cus- (Lesbian, Gay, Bisexual, Transgender, tomers and distributors. FOR REFUGEES Queer) workers, Barilla, the first Italian company to sign up to a United Nations These rules of conduct have been es- Initiative, has, since 2017, actively sup- tablished to support and respect the ported the Standards of Conduct for rights of LGBTQ+ communities wherev- Barilla is a member of the Tent Founda- The purpose of this programme is Business of the UN High Commissioner er companies operate and eliminate all tion, founded by Hamdi Ulukaya di Cho- to offer participants the possibility to Office for Human Rights, which aim to forms of discrimination. bani, which works in close cooperation learn Swedish and, at the same time, to deal with the issue of LGBTQ+ discrimi- In 2019, Barilla confirmed its spon- with companies to help them develop acquire the skills required to work in a nation in the business world. sorship of Openly, a new digital news and implement concrete efforts in sup- production environment. platform, developed by the Thomson port of refugees. The Standards of Conduct for Business Reuters Foundation, dedicated to ITALY aim to establish rules of conduct that reporting global problems affecting the To achieve this, the company undertook companies should follow when dealing LGBTQ+ community. to train refugees in its production plants In partnership with Adecco and the and offices in Sweden, France, Italy, and United Nations High Commissioner Germany, with the goal of reaching a for Refugees, Barilla launched a project minimum of an additional 75 refugees in intended to provide employment for a For six consecutive years (2015-2020) Barilla has earned a per- the next five years. group of refugees, through an appren- fect 100% score in the Human Right Campaign (HRC) annual ticeship contract, at the Pedrignano Corporate Equality Index (CEI) in the United States, which Work opportunities will be identified office and the Group’s production sites. ranks major corporations on how they support LGBTQ+ em- based on the company’s needs in these ployees. The CEI is a national benchmarking tool on corporate markets. Barilla will work with local or- GERMANY policies and practices relating to lesbian, gay, bisexual and tran- ganisations and government agencies to sgender (LGBTQ+) employees. identify, train and include the refugees in The Group renewed its commitment its workforce and provide services such to work with local Chambers of Com- HRC is the largest civil rights and lobbying organization in the as language training. merce on a series of initiatives aimed at Unites States that works to achieve LGBTQ+ equality. Participa- promoting employment in the Cologne ting in this assessment was one of our first commitments. SWEDEN office and the Celle production facility for refugees hosted in Germany. In 2019, Barilla Filipstad renewed its The Brand Diversity Summit was held in March, an occasion partnership with the Swedish public In addition to programmes for learning for various companies to come together and discuss the im- service for employing and developing the tasks assigned, refugees undertake portance of inclusion in the workplace and in the community. professional (Yrkes-Svenska) provided paths to learn the German language and The summit served as an opportunity to present the Diversity by Area Kompetens, in order to employ deepen their knowledge of the local cul- Brand Index, which aims to measure brands’ inclusion level, from a group of refugees at its production ture, with a view to greater integration a customer-based perspective, checking the actual effort of plant; these employees follow a work and inclusion in the community. companies in terms of diversity and inclusion. The Barilla brand path based on language and on profes- has been included in the 20 more inclusive brands. sional training.

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SUPPORTING PEOPLE WITH DISABILITIES 6.2 HEALTH AND SAFETY

During the year, Barilla continued the be more attentive to physical and cog- awareness-raising and training course for nitive disabilities from the design stage its people on this subject, with the aim of of cooking tools and new packaging developing creative ideas and solutions suitable for the needs of people with To guarantee and promote the health, international standard OHSAS:18001 to overcome physical and social barriers special needs. safety and wellbeing of its people, the (and replaced by ISO 45001, in 2018). in the company. Group has adopted a specificpolicy for In 2019, the experience was transferred the management and protection of oc- The Group maintained its commitment to France, in the Paris offices, involving cupational health and safety (HSE Cor- 94% to the Hackability event, a discussion in- the brands Harrys and Wasa; on that oc- porate Policy). At Group level, the HSE of plant employees volving interdisciplinary teams, in which casion, the work groups studied all prod- unit takes care of the development of operate in sites that people with disabilities, together with uct characteristics to improve accessibil- guidelines on specific matters pertain- have received the artisans and designers, are stimulated to ity and guarantee inclusion. ing to health and safety, which are trans- OHSAS:18001 or ISO 45001 posed in the production plants by the managers and their HSE teams. At local level, managers and their teams outline Control activities are carried out periodi- suitable operational procedures con- cally to prevent fires and check the safety cerning the management of health and standards. During 2019, 78 audits were safety risks in the plants. carried out at various sites to check compliance with local rules and regula- Among the main documents on this tions on occupational health and safety, matter, we would like to mention the Ba- and alignment with the provisions of the rilla Fire Safety Manual: the first corpo- standard OHSAS:18001 or ISO 45001. rate guidelines, developed over fifteen years ago, which contain all good corpo- rate practices for the prevention of fires 78 and explosions. audits performed during the year in 53 plants Moreover, systems for the management and offices to check of occupational health and safety have been implemented at the production safety standards plants. Over ten years ago, the compa- ny launched a process for the certifica- tion of these Systems; today, over 80% of plants are certified, by an independ- ent third body, in accordance with the

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PRODUCTION SITES CERTIFIED BY NUMBER OF INCIDENTS OHSAS:18001 OR ISO 45001 BY GEOGRAPHICAL AREA

AAA ITALY 14 100% 1% AMERICA REST OF EUROPE 10 7% AND RUSSIA 100%

ITALY AAA 1 100% 41% REST OF AMERICA 3 EUROPE 0% 69%

% PLANTS CERTIFIED TOTAL PLANTS OHSAS:18001 OR ISO45001

Continuous employee training on Over 26,758 hours of training on health occupational health and safety is and safety were provided to Barilla em- deemed an essential requirement. In this ployees during 2019. context, aside from the annual courses foreseen by the regulatory framework The risk management system, prevention of reference, the Group provides ad hoc activities, controls and the training pro- training to all newly-hired personnel, with gramme led to a decrease of 50% in the particular focus on the main risk areas re- total number of accidents, compared to lated to the tasks performed. Moreover, 2010. the emergency teams participate in spe- cific courses regarding the prevention of In 2019, 118 accidents (none of which fires, explosions, and first aid practices. were fatal).

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ACCIDENT SEVERITY INDEX 6.3 2019 2018 2017 TRAINING AND TALENT DEVELOPMENT 0.39 0.35 0.49

Severity index calculated as: (total number of days of absence due to accidents/total number of hours worked) *1,000

The Human Resources department has for a total of over 120 thousand of hours ACCIDENT FREQUENCY INDEX defined training paths to promote peo- of training provided. 2019 2018 2017 ple’s professional growth, enhancing Moreover, Barilla Academies have been knowledge and skills, and to improve established over the years, which pro- 10.41 10.23 10.24 potential. vide training and involve employees in Frequency index calculated as: (total number of accidents/total number of hours worked) *1,000,000 strengthening their individual skills in To provide its human resources with the main professional fields. 450 people high-quality training, the Group invested, participated in the Academies’ initiatives during the year, over 2.4 million euros, during the year. ACCIDENT INCIDENCE INDEX 2019 2018 2017 1.49 1.47 1.43 AVERAGE HOURS OF TRAINING BY CATEGORY AND GENDER

Incidence index calculated as: (total number of accidents/total number of employees) *100 2019 Man Woman Total Executives 20.87 19.88 20.67 ABSENTEEISM Managers 25.91 27.45 26.46 2019 2018 2017 White-collar workers 20.52 18.85 19.88 0.05 0.35 0.66 Blue-collar workers 15.44 8.29 13.72 Sales force 2.49 8.61 3.62 Absenteeism rate calculated as: (total number of days of absence due to accidents/total number of hours worked)

To promote people’s professional The candidates are then assessed, pos- growth, the company has set up a spe- sibly with an interview over the phone cific internal selection process, which and online assessment questionnaires; the precedes external selection, aimed at ones who are not selected receive feed- identifying the best talents among em- back on possible areas of improvement. ployees to cover vacant posts. With regard to the external recruitment Vacant posts are announced inter- process, vacant posts are advertised on nally and all employees of the Group various channels, so as to create a diver- may apply. sified pool of possible candidates.

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RECRUITMENT BY GEOGRAPHICAL AREA AND GENDER 2019 2018 2017 TRAINING HOURS BY SUBJECT AREA Man Woman Total Man Woman Total Man Woman Total Italy 130 89 219 105 56 161 48 19 67 DIVERSITY AND LEADERSHIP Rest of Europe 152 94 246 165 78 243 106 63 169 INCLUSION AND SOFT SKILLS America 94 40 134 56 24 80 53 31 84 LANGUAGE AAA 0 2 2 9 6 15 5 7 12 SKILLS 1% 16% Rest of the World 14 19 33 15 11 26 6 10 16 4% Total 390 244 634 350 175 525 218 130 348 QUALITY AND FOOD DEPARTURES BY GEOGRAPHICAL AREA AND GENDER OTHER SAFETY 2019 2018 2017 27% 11% Man Woman Total Man Woman Total Man Woman Total Italy 131 38 169 68 21 89 53 24 77 Rest of Europe 176 93 269 130 108 238 146 120 266 HEALTH America 65 30 95 42 18 60 45 18 63 AND SAFETY AAA 1 3 4 13 4 17 12 7 19 41% Rest of the World 10 9 19 13 10 23 6 9 15 Total 383 173 556 266 161 427 262 178 440

RECRUITMENT BY GEOGRAPHICAL AREA AND AGE GROUP 2019 2018 2017 <30 30-50 >50 <30 30-50 >50 <30 30-50 >50 40% own personal experience, in a true, open Italy 89 126 4 64 96 1 31 34 2 and transparent manner. Rest of Europe of the vacant posts for white- 108 127 11 109 117 17 64 95 10 America 51 61 20 31 40 9 29 39 16 collar jobs are covered through BARILLA'S EVP AAA 0 2 0 6 9 0 5 6 1 internal personnel selection Rest of the World 10 23 0 10 15 1 4 11 1 • HUMAN TOUCH: sense of belonging, Total 258 339 35 220 277 28 133 185 30 family culture and a business guided by With reference to keeping talents and at- strong values with special attention paid DEPARTURES BY GEOGRAPHICAL AREA AND AGE GROUP tracting new ones, Barilla has, over the to care and respect for People; 2019 2018 2017 years, developed the Employer Value • SENSE OF PURPOSE: pride of being <30 30-50 >50 <30 30-50 >50 <30 30-50 >50 Proposition (EVP). one of the Barilla People and doing an Italy 10 34 125 7 14 68 4 29 44 important job; Rest of Europe 46 139 84 53 114 71 65 131 70 A campaign through which Barilla’s peo- • EMBRACING CHALLENGES: a dynam- America 29 47 19 15 22 23 11 36 16 ple have spoken, in their own words, ic and meritocratic environment that al- AAA 2 2 0 3 12 2 3 13 3 of the most important aspects of value lows people to take on challenges and Rest of the World 4 15 0 2 15 6 1 13 1 proposition, interpreting it through their initiatives. Total 91 237 228 80 177 170 84 222 134

168 169 CHAPTER 6 PEOPLE AND COMMUNITY 2020 SUSTAINABILITY REPORT

PERMANENT STAFF POSITIVE 6.4 TURNOVER INDEX 2019 2018 2017 INTERNAL COMMUNICATION Man Woman Total Man Woman Total Man Woman Total

7.2% 10.5% 8.2% 6.5% 7.7% 6.8% 4.1% 4.1% 4.1% Involving, inspiring and promoting These activities are supplemented by PERMANENT STAFF NEGATIVE participation at local, regional and periodic communications through TURNOVER INDEX global level, thus disseminating all internal channels, such as newsletters 2019 2018 2017 corporate values. and monthly news bites.

Man Woman Total Man Woman Total Man Woman Total As in previous years, during the year the Lastly, 2019 saw the introduction of the company organises meetings with the new internal portal Barilla World and 7.1% 7.4% 7.2% 4.9% 7.1% 5.6% 4.9% 5.8% 4.6% goal of involving people in the Group’s the digital workspace OneBarilla, aim- performance trends, in strategically im- ing to facilitate and promote collabora- portant subjects and corporate priorities. tion among people, the sharing of in- Over the years, again with the goal of levels and high potential, for whom the formation, and prompt communication people’s professional growth, Barilla company defines specific development Continuing the work begun in past years, of news. has set up an employee Performance paths in order to turn them into potential 2019 saw three main Global and Local Assessment System. candidates for a leadership post in the Town Hall meetings, organised at global Also through Internal Communication, company in the next five years. and local level, open to the entire corpo- Barilla favours a feedback culture, pro- rate community on the corporate intranet. moting listening and involvement lab- 2,612 oratories, seminars, enquiries, systems Barilla people covered by 1,426 As usual, the company also held the of feedback and face-to-face dialogue. an annual performance Barilla people Leadership Team Meeting 2019 (YLTM management system covered by a talent 2019), an opportunity to meet and be management system stimulated at the end of the year, where in 2019 the Group’s results are shared, sharing the new "BarillaWorld" portal The annual assessment is carried out strong points and stimulating reflection and the new digital platform globally: employees are mapped within on aspects that require more investment "OneBarilla" have been a matrix, where each position has a rec- and attention. introduced ommended series of actions with regard to development and possible promo- The meeting also represents an oppor- tions. This process also applies to the se- tunity to involve the contact persons lection for and succession in company of third-party companies and organisa- leadership posts, as well as to the iden- tions to share virtuous business mod- tification of Talents on a Global scale, a els, which are a source of inspiration for group of people with high performance Barilla’s management.

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6.5 6.6 TRADE UNION RELATIONS SUPPORT TO COMMUNITIES

Barilla has, over the years, established a • the site representation body or Over the years, Barilla has continued to To guarantee that these activities are man- constant dialogue with all the trade union RAPPRESENTANZA SINDACALE UNI- strengthen the relationship with the lo- aged with respect for the law and in total organisations present in the Group and TARIA (RSU) (Unitary Trade Union Rep- cal areas where it operates, by actively transparency, Barilla has defined a specific long-lasting relationships based on princi- resentation) that exists in 10 production supporting communities in difficult situ- policy aiming to govern roles, responsibil- ples of integrity and mutual transparency. plants, four mills, offices and Vendors. ations and implementing projects to fa- ities and operational means with regard The RSU coordinators meet twice a year vour social inclusion and access to food. to the management of donations. Discussions with the unions take place to discuss the national economic and at three levels: social situation, performance trends, and Over to analyse indicators and strategies relat- 2,255,000 Over hours euros donated during the year 1,595 • the EUROPEAN WORKS COUNCIL ed to the production plants. of corporate volunteering (CAE), a representative body that pro- motes social dialogue, information to Local RSUs are also responsible for deal- Support that is provided through spon- and consultation with workers in com- ing with matters arising at their individual sorships, donations of money and panies with a presence around the EU, sites, such as training courses, environ- products, thanks to the cooperation Approximately 10,140 i.e. companies with more than 1,000 em- mental and safety issues, occupational with local authorities, local companies, visits to Barilla plants ployees and registered offices in more impacts and specific local issues. charities, and non-profit associations. than one EU country. The Council is defined through an agreement between Thanks to the responsible management the companies’ central Management of relations with union representatives, PRODUCT DONATIONS and a Special Negotiation Delegation in 2019, only 0.01% of hours worked at (SND), whose members are appointed Barilla concerned strikes or labour by the national trade unions. The tasks disputes. 1,100 tonnes of products were donated de Alimentos in Brazil; Food Bank Aus- of the council consist in preparing the during 2019. To manage donations effi- tralia; TIDER Food Bank in Turkey; Ban- procedures that govern transnational ciently, Barilla collaborates with various que Alimentaire and Restos du Coeur in information and consultation rights of local associations. France, and Food Bank in Germany. trade unions; In particular, the main associations the • the CONFEDERAZIONE DEI SINDA- Group works with are Banco Alimen- Over 1,100 CATI NAZIONALI (CSN) (National Trade tare, the Civil Protection Department, tonnes of food products Union Confederation), which is sup- and the Red Cross in Italy; Food Bank donated during the year ported by national and local trade union New York, Food Bank Texas and Feed- offices; ing America in the United States; Bancos

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SAN DEMETRIO Abruzzo, making improvements to the gym thanks to a modern thermoregula- Ten years ago, the joint efforts of Barilla tion system and the enhancement of the and the Municipality of San Demetrio led sports structures. In addition, a new pro- to the reconstruction, in under 100 days, fessional kitchen with a multi-purpose of the Cittadella Scolastica di San Dem- hall was built, which can be used for the etrio Ne’ Vestini (L’Aquila), which had preparation of meals for the students been severely damaged during the 2009 and for the organisation of courses and earthquake. The new, seismically safe training activities on topics related to nu- gym was also inaugurated in December trition and diet. 2010; today it is used by children during The new collaboration between Barilla the school year and by over 500 people – and the San Demetrio community was adults and children – during the summer. presented on 20 September 2019 at the Volpicelli school of the Istituto Compren- Thanks to these reconstruction works, the sivo di San Demetrio ne’ Vestini, with the Cittadella Scolastica di San Demetrio is to- participation of Paolo Barilla, of the May- day a point of reference not just for the or of San Demetrio, Silvano Cappelli, and small Village, but for an entire area that is other important local institutions. During still recovering. the event, the Municipality acknowledged the effort made by Paolo Barilla and of- In 2019, Barilla renewed its commit- fered him profuse thanks on behalf of the ment to support the small community in entire community.

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A “PASTA PARTY” ORGANISED BY THE Moreover, another event was organ- A GIFT FOR THE RED CROSS OF PARMA “BARILLA ANGELS” AND THE CIVIL ised in June, which involved over PROTECTION DEPARTMENT 180 children sharing a meal together. Barilla donated an ambulance to the Parma Red Cross, which will provide immediate help to patients with severe heart or respiratory distress. A pasta party took place during the event, PUSO SA PUSO EDUCASYON prepared by the Barilla Angels, Group An innovative rescue vehicle, the second in all of Emilia Romagna, tested employees, Volunteers of the Civil Pro- In collaboration with Puso sa Puso thanks to the supervision of the doctors of the Intensive Care department of tection Department, who set up the Educasyon Inc., a non-profit organisa- the Maggiore Hospital of Parma. lunch with their Mobile Unit. Specifical- tion based in Manila, The Philippines, ly, this is a mobile kitchen truck, built by which provides free education to poor A donation made in memory of Luca Virginio, who for several years led the Barilla in 2014, in collaboration with the children who would not otherwise have Group's Communication and External Relations function with great passion, Civil Protection Department of Parma, been able to go to school, Barilla took who passed away in 2019. able to prepare up to 500 hot meals part and actively supported the organ- per hour. isation of the Christmas celebration in An example for the whole company of tireless determination as well as a key favour of the Mama lou community. person in the development of the Good for You, Good for the Planet journey. The emergency Mobile Unit was sup- During the event, the chef Giorgio ported by a pool of 100 Civil Protection Bucciarelli prepared approximately 900 The inauguration of "Charlie", the name of the ambulance given as a dona- Department volunteers, employees of portions of Spaghetti alla Bolognese for tion, was held on 20 December 2019 at the Red Cross headquarters dur- the company, who followed a training all children. ing an official ceremony in which Guido, Luca and Paolo Barilla participated path and now are able to contribute together with the family of Luca Virginio, the civil and religious authorities wherever they are needed. and all the volunteers. The Mobile Unit project was strongly supported by the Barilla Family, which, since the 1994 Piedmont floods, has been actively collaborating with the National Civil Protection Department.

MARRIOTT CHARITY FOUNDATION

In 2019, Barilla promoted charitable and support activities to the Bangkok com- munity, thanks to the collaboration with the Marriott Charity Foundation. In May, during an Open-Air Kitchen event, donated pasta dishes fed a com- munity of 50 children, while disseminat- ing the importance of a balanced diet.

176 177 CHAPTER 6 PEOPLE AND COMMUNITY 2020 SUSTAINABILITY REPORT

BARILLA HISTORICAL ARCHIVE - A LIVING ARCHIVE

Created in 1987 according to the will of Pietro Barilla (1913-1993) in order to collect and enhance to the history of the Company, the Barilla Historical Archive preserves over 50,000 materials that include photo library, press re- view, specialized library, catalogs, video library, tape library, promotional and advertising material, packaging, awards, projects, correspondence and com- pany documentation.

On 30 November 1999, the Italian Ministry of Cultural Heritage and Activ- ities declared the Barilla Historical Archive “of remarkable historical inter- est” as “a witness to the development of the food industry in Parma and the evolution of customs in Italy”, underlining its importance and con- sistency. The activity of the Archive opens to the world of school and re- search, collaborates in exhibitions, publications and tv productions and makes its heritage available to the people through a very rich internet site: https://www.archiviostoricobarilla.com/en/

178 179 COVID-19 EMERGENCY COVID-19 EMERGENCY 2020 SUSTAINABILITY REPORT

THE SAFETY OF BARILLA PEOPLE

Barilla Group reacted immediately to the Coronavirus As soon as the extent of the Coronavirus Workers at Barilla plants were, there- emergency, by tackling various priorities: the safety of its emergency became clear, the Group’s fore, provided with personal protective people, support to communities, production continuity, first priority was to take care of its peo- equipment, such as masks and gloves. ple. Therefore, clear rules of conduct The company introduced the measure- and designing a roadmap for the future. were provided to all employees: in the ment of temperature on entry, as well as offices, in the Sales Force, in the plants. A the obligation to always keep a distance We did so in the awareness of the important role played global insurance cover in case of hospi- of at least one metre between people, by the agri-food sector at such a difficult juncture: thanks talisation due to Covid-19 was also stip- and discontinued face-to-face meetings ulated. All work places were sanitised and all activities that would make such to the incredible commitment of our people, Barilla and underwent extraordinary disinfec- safety distance impossible, introducing products continued to offer an island of normality to tion. Events and visits of outsiders to the shifts for the canteen and spreading out millions of consumers around the world. Group’s facilities were suspended, as seats at the tables. was business travels, with the exception All Group employees who continued of travels within one country, required to working during the weeks of lockdown guarantee production continuity. received a bonus in March and April. All actions undertaken by the Group Lastly, to support plant and logistics per- during the crisis were decided by fol- sonnel, Barilla bought “thank you” pages lowing the recommendations of the in the national and local newspapers of World Health Organization, and by ap- the main Countries where the company plying the decrees and recommenda- has a presence. tions of national and local Authorities, or even actually anticipating or supple- OFFICES AND SALES FORCE menting them with stricter measures, agreed, if needed, with the doctors. Office workers were asked to work re- motely, while the office premises were PLANTS AND LOGISTICS sanitised and equipped with preventive measures, such as the installation of dis- Barilla’s plants and logistics platforms infecting liquid dispensers, also self-pro- continued operating throughout the cri- duced, the introduction of shifts and dis- sis, as set forth by the Authorities, which tancing at the tables for the use of the ruled that the production of food prod- canteen and common areas, the prohibi- ucts is an essential activity. tion to hold face-to-face meetings.

182 183 COVID-19 EMERGENCY 2020 SUSTAINABILITY REPORT

A gradual plan has been drawn up for Barilla people who have returned to the the return to the office, when authorised office have been equipped with a kit SUPPORT TO COMMUNITIES by the authorities, with the aim of keep- containing masks, gloves, and glasses; ing remote working in place and limiting the company has also introduced the the number of people in the office to the measurement of temperature with ther- strict minimum needed. Aside from the mal cameras on entry. measures adopted, stricter regulations Barilla has always endeavoured to support • CHARITABLE PAYMENTS: over 2 million have been introduced for social distanc- The employees of the Sales Force were the communities in which it operates. Dur- euros to directly support and strengthen ing, by staggering work stations, sep- required to work remotely; when allowed ing the Coronavirus emergency, this sup- some medical facilities, such as Parma’s arating the desks with plexiglas panels back in the field, they have been provided port has taken the form of a series of con- Ospedale Maggiore Hospital, or for the where necessary, and making the use with safety equipment, including masks, crete actions in many countries where the purchase of useful materials and digital of a mask obligatory when employees sanitiser and rules of conduct. Group has a presence, for a total of over equipment for home-schooled children. are not at their desks. 3.5 million euros donated (data updated at the end of May 2020). Specifically: • FINANCIAL SUPPORT TO RESEARCH: a donation of 500,000 dollars to The • PRODUCT DONATIONS: for people in Cure Alliance, intended to fund a cure difficulty as well as for first-line health- for Covid-19 based on mesenchymal care staff, for the Red Cross and chari- stem cells, developed by an internation- ties such as food banks, and in support al team of scientists led by the Italian of solidarity initiatives organised by as- Camillo Ricordi. sociations or individual chefs (over 800 tonnes of products).

• DONATIONS OF MEDICAL SUPPLIES: ventilators, masks, sanitisers and other medical supplies were donated to hospi- tals, to the Red Cross and to bodies such as the Italian Civil Protection Department.

184 185 ANNEX

METHODOLOGICAL NOTE 188

GRI INDEX 194 METHODOLOGICAL NOTE 2020 SUSTAINABILITY REPORT

METHODOLOGICAL NOTE

The “Good for You, Good for the Germany, Greece, Turkey, Russia, USA PRINCIPLES FOR DEFINING THE CONTENT OF THE REPORT Planet” Report is the tool used to share with and Mexico. The data pertaining to the society at large the path undertaken by distribution and sale of products include, Barilla is committed to identifying and establishing an Barilla Group, consistently with the United in addition to the above, also Austria, Bel- STAKEHOLDER open and transparent dialogue with the people who, in Nations’ Sustainable Development Goals, gium, Croatia, Denmark, Norway, Hol- INCLUSIVITY any capacity, contribute to the activities of the company part of the 2030 Agenda. The report shows land, Poland, Slovenia, Spain, Switzerland, or are influenced by them. the key results that have been achieved Arab Emirates, Brazil, Canada, Australia, and the road map for coming years to China, Japan and Singapore. create value in the long term. The Report describes the performance of the Group No significant events or changes should considering the international setting of reference. In line SUSTAINABILITY with this objective, the Group’s current and prospective Since 2008 it has been published on an be reported in the measuring methods CONTEXT contributions to Agenda 2030 have been identified and annual basis. that would affect the comparability of stated. the information contained in this Report The Report is drawn up in compliance in relation to that supplied in the previous with the GRI - Sustainability Reporting edition, except when duly reported in Standards, published in 2016 by the specific notes. The social and environmental aspects set out in the report are those of greatest interest in terms of Global Reporting Initiative, according to MATERIALITY relevance for Barilla and for the community it operates the Core option. To date, the GRI Stand- This Report was written with the techni- in, as derived from the materiality matrix. ards are the most widespread and prom- cal-methodological assistance of KPMG inent international standards on non Advisory S.p.A.. financial reporting. The detailed aspects, the quality-quantity indicators For clarifications you can send a request and the reporting period reflect the set of economic, environmental and social impacts of the entire Group, The reported data and information refer to: goodforyougoodfortheplanet@barilla. COMPREHENSIVENESS in all the main geographical areas and settings where to fiscal year January 1 - December 31, com the activities may have a significant influence for 2019, unless stated otherwise. The report- stakeholders. ing period matches that of the Consoli- dated Financial Statements of the finan- cial year ended on December 31, 2019; With a view to total transparency, the document BALANCE BETWEEN describes the main performance items, reporting any period limitations are specified in the POSITIVE AND positive aspects as well as the areas for improvement document. The data relating to produc- NEGATIVE ASPECTS and future challenges. tion aspects refer to the Group’s compa- nies operating in Italy, France, Sweden,

188 189 METHODOLOGICAL NOTE 2020 SUSTAINABILITY REPORT

MATERIAL TOPICS REFERENCE PRINCIPLES FOR DEFINING THE CONTENT OF THE REPORT SCOPE OF IMPACTS IDENTIFIED STANDARDS Internal External Limitations Wherever available, comparisons are included with the impact impact previous two financial years (years ended on: December Selected Materials COMPARABILITY 31, 2017 and December 31, 2018). raw materials Information on the objectives that Barilla has set for itself by 2020 and by 2030 is also provided. Procurement practices Traceability and transparency Marketing and In order to ensure the reliability of the information labeling of products provided, directly measurable values were favoured, and services avoiding estimates as much as possible. However, where estimates were necessary, they are based on the best Innovation and Consumers’ health ACCURACY available calculations methods or on random sampling quality for food safety and safety and are appropriately identified. The methods set out by Excellent recipes the IPCC – Intergovernmental Panel on Climate Change * – were used for the calculation of data on consumption for superior taste and emissions. Assessment of Wellbeing of people suppliers for their and animals impact on society TIMELINESS The Barilla Group’s reporting cycle is annual. Animal welfare

Perfect nutritional Consumers’ health profile and safety The description of the activities and projects contains Diversity and equal information that is as clear and accessible as possible to Diversity opportunities CLARITY and Inclusion any Group stakeholder, with some insights provided on Non-discrimination technical data and specific industrial issues. Promotion of healthy lifestyles Health and food Data collection and control requires the involvement and nutritional accessibility of a high number of company departments and education contact people in the various countries included in the “Modern” reporting scope, also with the support of data collection * food trends IT systems. This is followed by a consolidation and RELIABILITY validation process by the representatives of the various Procurement work groups, each in their area of responsibility. The practices document is not subject to verification by external Sustainable companies. Therefore Barilla’s executives are fully agriculture Assessment responsible for the data and information contained in of suppliers for their the report. impact on society

190 191 METHODOLOGICAL NOTE 2020 SUSTAINABILITY REPORT

MATERIAL TOPICS REFERENCE SCOPE OF IMPACTS IDENTIFIED STANDARDS Internal External Limitations impact impact Non-discrimination

Human Rights Assessment of suppliers for their impact on society Recyclability Effluents and waste and food waste

Care for the local Indirect economic communities and region impacts Responsible Marketing and marketing labelling activities of and labelling products and services

People Care Employment

Energy Water Sustainable Emissions production sites and health and safety Effluents and waste Occupational health and safety

192 193 GRI INDEX 2020 SUSTAINABILITY REPORT

GRI INDEX

GENERAL DISCLOSURES

ORGANISATIONAL PROFILE Indicator Indicator description Report section Omissions 102-1 Name of the organisation About us > Group profile 102-2 Activities, brands, products and services About us > Group profile 102-3 Location of headquarters About us > Group profile 102-4 Location of operations About us > Group profile 102-5 Ownership and legal form About us > Group profile 102-6 Markets served About us > Group profile 102-7 Scale of the organisation About us > Group profile 102-8 Information on employees and other workers People and community > Barilla people Good for the Planet > Responsible supply chains 102-9 Supply chain Good for the Planet > Animal welfare Significant changes during the reporting period 102-10 Annex > Methodological note concerning the Group and its supply chain 102-11 Precautionary principle or approach Governance > Risk management How we respond to global challenges > Consumer goods sector 102-12 External initiatives How we respond to global challenges > Our contribution to the 2030 Agenda 102-13 Membership of associations How we respond to global challenges > Consumer goods sector STRATEGY Indicator Indicator description Report section Omissions A future that we will build together 102-14 Statement from a senior decision-maker A mission drives us Governance > Risk management 102-15 Key impacts, risks, and opportunities How we respond to global challenges > International scenario How we respond to global challenges > BCFN Foundation

194 195 GRI INDEX 2020 SUSTAINABILITY REPORT

ETHICS AND INTEGRITY Indicator Indicator description Report section Omissions About us > Values How we respond to global challenges > Our contribution 102-16 Values, principles, standards, and norms of behaviour to the 2030 Agenda Governance > Code of Ethics 102-17 Mechanisms for advice and concerns about ethics Governance > Code of Ethics GOVERNANCE Indicator Indicator description Report section Omissions 102-18 Governance structure Governance > Business model 102-19 Delegating authority Governance > Business model Executive-level responsibility for economic, environmental, 102-20 Governance > Business model and social topics governance body 102-22 Composition of the highest governance body and its committees Governance > Business model Role of highest governance body in setting purpose, values, 102-26 Governance > Business model and strategy Identifying and managing economic, environmental, Governance > Business model 102-29 and social topics Governance > Risk management

STAKEHOLDER ENGAGEMENT Indicator Indicator description Report section Omissions

102-40 List of stakeholder groups How we respond to global challenges > Stakeholders’ engagement 100% of Barilla employees are covered by collective bargaining 102-41 Collective bargaining agreements agreements 102-42 Identifying and selecting stakeholders with whom to engage How we respond to global challenges > Stakeholders’ engagement

102-43 Approach to stakeholder engagement How we respond to global challenges > Stakeholders’ engagement

102-44 Key topics and concerns raised How we respond to global challenges > Stakeholders’ engagement

196 197 GRI INDEX 2020 SUSTAINABILITY REPORT

REPORTING PRACTICE Indicator Indicator description Report section Omissions

102-45 Entities included in the consolidated financial statements Annex > Methodological note How we respond to global challenges > Materiality analysis 102-46 Defining report content and topic boundaries Annex > Methodological note 102-47 List of material topics How we respond to global challenges > Materiality analysis

102-48 Restatements of information Annex > Methodological note

102-49 Changes in reporting Annex > Methodological note

102-50 Reporting period Annex > Methodological note

102-51 Date of the most recent report Annex > Methodological note

102-52 Reporting cycle Annex > Methodological note

102-53 Contact point for questions regarding the report Annex > Methodological note

102-54 Claims of reporting in accordance with the GRI Standards Annex > Methodological note

102-55 GRI content index Annex > GRI index

102-56 External assurance The report is not subject to external assurance

198 199 GRI INDEX 2020 SUSTAINABILITY REPORT

SPECIFIC DISLOSURES

GRI 200: ECONOMIC PERFORMANCE GRI 203: INDIRECT ECONOMIC IMPACTS Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach People and community > Support to communities 103-2, 103-3 203-1 Infrastructure investments and services supported People and community > Support to communities GRI 204: PROCUREMENT PRACTICES Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Good for the Planet > Responsible supply chains 103-2, 103-3 Good for the Planet > Responsible supply chains > The Sustainable 204-1 Proportion of spending on local suppliers Agriculture Project Good for the Planet > Animal welfare Good for the Planet > Responsible supply chains > The Sustainable Percentage of purchased volume from suppliers compliant G4 FP1 Agriculture Project with company’s sourcing policy Good for the Planet > Animal welfare Percentage of purchased volume which is verified as being G4 FP2 in accordance with credible, internationally recognized responsible Good for the Planet > Product packaging production standards GRI 205: ANTI-CORRUPTION Indicator Indicator description Section of the report Omissions GRI 103-1, Management approach Governance > Fighting corruption 103-2, 103-3 205-1 Operations assessed for risks related to corruption Governance > Fighting corruption Communication and training about anti-corruption policies 205-2 Governance > Fighting corruption and procedures The Barilla Group did not record any incidents of corruption 205-3 Confirmed incidents of corruption and actions taken during the year

200 201 GRI INDEX 2020 SUSTAINABILITY REPORT

GRI 206: ANTI-COMPETITIVE BEHAVIOUR Indicator Indicator description Report section Omissions Legal actions for anti-competitive behaviour, anti-trust, The Barilla Group did not record any legal actions for anti- 206-1 and monopoly practices competitive behaviour, anti-trust, and monopoly practices GRI 300: ENVIRONMENTAL PERFORMANCE GRI 301: MATERIALS Indicator Indicator description Report section Omissions Good for the Planet > Responsible supply chains GRI 103-1, Management approach Good for the Planet > Animal welfare 103-2, 103-3 Good for the Planet > Product packaging Good for the Planet > Responsible supply chains Good for the Planet > Responsible supply chains > The 301-1 Materials used by weight or volume Sustainable Agriculture Project Good for the Planet > Animal welfare Good for the Planet > Product packaging 301-2 Recycled input materials used Good for the Planet > Product packaging

301-3 Reclaimed products and their packaging materials Good for the Planet > Product packaging GRI 302: ENERGY Indicator Indicator description Report section Omissions Good for the Planet > Production GRI 103-1, Management approach Good for the planet > Production > Energy consumption 103-2, 103-3 and emissions Good for the Planet > Production > Energy consumption 302-1 Energy consumption within the organisation and emissions Good for the Planet > Production > Energy consumption 302-2 Energy consumption outside of the organization and emissions Good for the Planet > Production > Energy consumption 302-3 Energy Intensity and emissions GRI 303: WATER

Indicator Indicator description Report section Omissions GRI 103-1, Management approach Good for the Planet > Production > Water use 103-2, 103-3 303-1 Interactions with water as a shared resource Good for the Planet > Production > Water use

202 203 GRI INDEX 2020 SUSTAINABILITY REPORT

GRI 305: EMISSIONS Indicator Indicator description Report section Omissions GRI 103-1, Good for the Planet > Production > Energy consumption Management approach 103-2, 103-3 and emissions Good for the Planet > Production > Energy consumption 305-1 Direct (Scope 1) GHG emissions and emissions Good for the Planet > Production > Energy consumption 305-2 Energy indirect (Scope 2) GHG emissions and emissions Good for the Planet > Production > Energy consumption 305-4 GHG emissions intensity and emissions Good for the Planet > Production > Energy consumption 305-5 Reduction of GHG emissions and emissions GRI 306: EFFLUENTS AND WASTE Indicator Indicator description Report section Omissions GRI 103-1, Good for the Planet > Production > Water use Management approach 103-2, 103-3 Good for the Planet > Production > Waste 306-1 Water discharge by quality and destination Good for the Planet > Production > Water use

306-2 Waste by type and disposal methods Good for the Planet > Production > Waste GRI 400: SOCIAL PERFORMANCE GRI 401: EMPLOYMENT Indicator Indicator description Report section Omissions GRI 103-1, People and community > Barilla People Management approach 103-2, 103-3 People and community > Training and talent development 401-1 New employee hires and employee turnover People and community > Training and talent development

401-3 Parental leave People and community > Barilla People

GRI 402: LABOUR/MANAGEMENT RELATIONS

Indicator Indicator description Report section Omissions GRI 103-1, Management approach People and community > Trade union relations 103-2, 103-3 Percentage of working time lost due to industrial disputes, strikes G4 FP3 People and community > Trade union relations and/or lock-outs

204 205 GRI INDEX 2020 SUSTAINABILITY REPORT

GRI 403: OCCUPATIONAL HEALTH AND SAFETY Indicator Indicator description Report section Omissions GRI 103-1, Management approach People and community > Health and safety 103-2, 103-3

Breakdown 403-2 Hazard identification, risk assessment, and incident investigation People and community > Health and safety by gender is not available

Topics concerning Occupational Health and Safety are discussed within the Barilla European Company Committee (CAE), set up in Health and safety topics covered in formal agreements 2000 between unions and company representatives. Furthermore, 403-4 with trade unions the local union representatives are involved, at every production site, in specific committees for the management of occupational health and safety. GRI 404: TRAINING AND EDUCATION Indicator Indicator description Report section Omissions GRI 103-1, People and community > Internal communication Management approach 103-2, 103-3 People and community > Training and talent development People and community > Internal communication 404-1 Average hours of training per year per employee People and community > Training and talent development Programs for upgrading employee skills and transition People and community > Internal communication 404-2 assistance programs People and community > Training and talent development Percentage of employees receiving a regular performance 404-3 People and community > Training and talent development and career development review GRI 405: DIVERSITY AND EQUAL OPPORTUNITY Indicator Indicator description Report section Omissions GRI 103-1, People and community > Barilla people Management approach 103-2, 103-3 People and community > Barilla people People and community > Barilla people 405-1 Diversity of governance bodies and employees Governance > Business model GRI 406: NON-DISCRIMINATION

Indicator Indicator description Report section Omissions GRI 103-1, Management approach People and community > Barilla people 103-2, 103-3 The Barilla Group did not record any incidents of discrimination 406-1 Incidents of discrimination and corrective actions taken during the year

206 207 GRI INDEX 2020 SUSTAINABILITY REPORT

GRI 414: SUPPLIER SOCIAL ASSESSMENT Indicator Indicator description Report section Omissions GRI 103-1, Good for the Planet > Responsible supply chains > The Sustainable Management approach 103-2, 103-3 Agriculture Project > Supply chains with potential social issues Good for the Planet > Responsible supply chains > The Sustainable 414-2 Negative social impacts in the supply chain and actions taken Agriculture Project > Supply chains with potential social issues GRI 416: CUSTOMER HEALTH AND SAFETY Indicator Indicator description Report section Omissions GRI 103-1, Management approach Good for You > Quality and food safety 103-2, 103-3 416-1 Assessment of the health and safety impacts of product and services Good for You > Quality and food safety Incidents of non-compliance concerning the health and safety 416-2 Good for You > Quality and food safety of products and services Percentage of production volume manufactured in sites certified FP5 by an independent third party according to internationally recognized Good for You > Quality and food safety food safety management system standards Percentage of total sales volume of consumer products, FP6 by product category, that are lowered in saturated fat, trans fats, Good for You > Nutrition > Reformulation plans sodium and added sugars Percentage of total sales volume of consumer products, by product FP7 category, that contain increased nutritious ingredients like fibre, Good for You > Nutrition > New products vitamins, minerals, phytochemicals or functional food additives GRI 417: MARKETING AND LABELLING Indicator Indicator description Report section Omissions GRI 103-1, Management approach Good for You > Responsible marketing 103-2, 103-3 417-1 Requirement for product and service information and labelling Good for You > Responsible marketing Policies and practices on communication to consumers about FP8 Good for You > Responsible marketing ingredients and nutritional information beyond legal requirements SECTOR SPECIFIC: HEALTH AND FOOD ACCESSIBILITY

Indicator Indicator description Report section GRI 103-1, Management approach Good for You > Food education 103-2, 103-3 Programmes and practices hat promote access to healthy lifestyles; FP4 the prevention of chronic disease; access to healthy, nutritious Good for You > Food education and affordable food; and improved welfare for communities in need

208 209 GRI INDEX 2020 SUSTAINABILITY REPORT

SECTOR SPECIFIC: ANIMAL WELFARE Indicator Indicator description Report section Omissions GRI 103-1, Management approach Good for the Planet > Animal welfare 103-2, 103-3 Percentage and total of animals raised and/or processed, by species Good for the Planet > Responsible supply chains > The Sustainable FP9 and breed type Agriculture Project Policies and practices, by species and breed type, related to physical FP10 Good for the Planet > Animal welfare alterations and the use of anaesthetic Percentage and total of animals raised and/ or processed, by species Good for the Planet > Animal welfare > Animal origin supply FP11 and breed type, per housing type chains: Eggs, pork and beef Policies and practices on antibiotic, anti-inflammatory, hormone, FP12 Good for the Planet > Animal welfare and/or growth promotion treatments, by species and breed type

210 211 List of images: Edited by P. 2-3, Barilla Archive P. 50, Barilla Archive P. 133, Barilla Archive Barilla Communication P. 5, Barilla Archive P. 50, Barilla Archive P. 134, Barilla Archive and External Relations P. 7, Barilla Archive P. 51, Barilla Archive P. 135, Barilla Archive Department P. 8-9, Barilla Archive, P. 51, Barilla Archive P. 136, Barilla Archive Giampaolo Ricò P. 51, Barilla Archive P. 140, Barilla Archive P. 11, Barilla Archive P. 51, Barilla Archive P. 141, Barilla Archive Graphic Design P. 12-13, Barilla Archive P. 51, Barilla Archive P. 142, Barilla Archive Visualmade, Milan P. 14-15, Barilla Archive P. 54, BCFN 8th P. 143, Barilla Archive P. 16-17, Barilla Archive International Forum P. 145, Barilla Archive Photographs P. 19, Barilla Archive P. 55, Barilla Archive P. 148-149, Barilla P. 20-21, Barilla Archive, P. 64, Barilla Archive Archive Barilla Archive Giampaolo Ricò P. 65, Barilla Archive P. 150, Barilla Archive Barilla Historical Archive In line with our commitment to being good for the P. 22, Barilla Archive P. 66-67, Barilla Archive P. 152, Barilla Archive Simone Bramante Planet, this Report is printed in a limited number P. 23, Barilla Archive P. 70, Barilla Archive P. 154, Barilla Archive Giampaolo Ricò P. 24-25, Barilla Archive P. 72, Barilla Archive P. 155, Barilla Archive Armando Testa of copies, using FSC certified paper. P. 28-29, Barilla P. 74, Barilla Archive P. 162, Barilla Archive Archive P. 79, Barilla Archive P. 164-165, Barilla P. 31, Barilla Archive P. 80-81, Barilla Archive Printing The FSC certification mark guarantees that the P. 35, Barilla Archive Archive, Simone P. 165, Barilla Archive Cattaneo Paolo Grafiche Srl, P. 36-37, Barilla Center Bramante P. 168, Barilla Archive Oggiono, Lecco production and supply chain is managed with for Food and Nutrition P. 84, Barilla Archive P. 174, Barilla Archive (BCFN) P. 90, Barilla Archive P. 175, Barilla Archive the greatest respect for the environment is P. 38, Sustainable P. 93, Barilla Archive P. 177, Barilla Archive socially useful and economically sustainable. Development Goals, P. 94-95, Barilla P. 178, Barilla Historical UN official website Archive Archive, Thomas Th. P. 39, Barilla Archive P. 97, Barilla Archive Wurgel The FSC forest management standards include P. 43, Barilla Archive P. 99, Barilla Archive P. 179, Barilla Historical P. 44, Barilla Center P. 101, Barilla Archive Archive, Erberto the protection of water quality, prohibit cutting for Food and Nutrition P. 106, Barilla Archive Carboni (BCFN) P. 109, Barilla Archive P. 186-187, Barilla down old-growth forests, prevent the loss of nat- P. 47, BCFN 10th P. 110, Barilla Archive Archive ural forest cover, and ban the use of highly toxic International Forum P. 112, Barilla Archive P. 49, Hero Images, P. 117, Barilla Archive chemical products. In addition, FSC expects Getty Images P. 120, Barilla Archive, P. 50-51, Barilla Archive Armando Testa forest managers to involve the members of the P. 50, Barilla Archive P. 121, Barilla Archive, local communities in the decision-making pro- P. 50, Barilla Archive Armando Testa P. 50, Barilla Archive P. 125, Barilla Archive cesses and to protect the rights of indigenous populations.

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