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2020 Sustainability Impact Report Tracking Performance Our in 2020 2020 Sustainability Impact Report INTRODUCTION FOOD SAFETY AND QUALITY A Message to Our Stakeholders .......................03 Ensuring Food Safety and Quality ....................45 Q&A With Our Chief Sustainability Officer ........04 Tracking Our Performance in 2020 ...................46 Our Corporate Purpose ..................................05 Our Stakeholders ..........................................06 Identifying Our Sustainability Priorities..............07 HEALTH AND WELLNESS Our Sustainability Strategy ..............................08 Delivering Healthy and Nutritious Food ............49 Creating Value for Our Stakeholders .................11 Innovating in Health and Wellness ...................50 Forward-Looking Information .......................... 12 About This Report .......................................... 12 HELPING COMMUNITIES Showing Up in Our Communities .....................53 ANIMAL CARE Tracking Our Performance in 2020 ...................57 Our Guiding Principles for Animal Welfare ........ 15 Tracking Our Performance in 2020 ................... 19 WORKER HEALTH AND SAFETY Our Approach to Worker Health and Safety ......60 DIVERSITY, EQUITY Our Workforce on the Front Lines .................... 61 AND INCLUSION Tracking Our Performance in 2020 ...................68 Building a Diverse, Equitable and Inclusive Business ....................................22 INDEXES ENVIRONMENT GRI Index......................................................69 UN Sustainable Development Goals ................95 Innovating for a Clean Energy Future ................ 31 Enhancing Operational Efficiency Across Our Business .......................................36 Appendix .....................................................97 Responsible Management of Our Supply Chain ..........................................40 Tracking Our Performance in 2020 ...................42 2020 SUSTAINABILITY IMPACT REPORT IMPACT 2020 SUSTAINABILITY 2 A Message to Our Stakeholders INTRODUCTION The challenges of 2020 provided us an opportunity Environment to simplify and reaffirm our core business priorities, We advanced innovative partnerships to capture with a focus foremost on our employees. The success renewable natural gas from methane at our hog-farming and resilience of our company is built on our culture of operations and became the first major protein company Responsibility, Operational Excellence and Innovation to commit to becoming carbon negative in all U.S. (ROI). We uphold an especially keen focus on company-owned operations by 2030. Operational Excellence, which compels us to tirelessly pursue sustainable improvement across our operations. Food Safety and Quality Moving forward, we intend to further reduce We continued to measure our food safety and quality complexity across our vertically integrated business performance against the industry-leading Global Food through enhanced visibility into our operations and Safety Initiative (GFSI) standard, achieving 100% GFSI supply chains to target inefficiencies, reduce waste and recertification at all our applicable facilities in the United foster collaboration among our skilled workforce. States, Poland and Romania. These goals and principles go hand in hand with Health and Wellness Smithfield’s perennial commitment to sustainability, We streamlined our processes and formulations to help an integral program that we affirmed, updated and deliver on our 2025 targets, including reducing added expanded in 2020 to target important issues for our sugars and sodium by 10% across our product lines. company and stakeholders. These include animal care; a diverse, equitable and inclusive organization; Helping Communities environmental stewardship; food safety and quality; We increased giving efforts to support communities by health and wellness; local community support; and the donating nearly 70 million servings of protein to hunger health and safety of our employees. relief causes and more than $1 million in educational scholarships to Smithfield families. This report reflects our position as an industry leader in sustainability and introduces our latest five- and Worker Health and Safety 10-year goals across Smithfield’s updated and existing We invested more than $800 million in COVID-19 sustainability pillars. It also provides an open and honest response measures at our facilities and in employee account to consumers and other stakeholders who want benefits in 2020 to keep workers healthy and safe while to know more about where their food is made and how maintaining health and safety rates below the relevant it is produced. industry averages globally. Animal Care As we turn to the next chapter of our company’s story, We maintained our systematic programs and we look ahead with anticipation toward Smithfield’s certifications to ensure the well-being of animals in our robust, bright future. The incredible strength and care on Smithfield’s farms and facilities globally. resilience of our employees continues to be the key to our success. We know that when we are faced with Diversity, Equity and Inclusion difficulties, it is our employees who create the solution. We underscored our long-term responsibility to create Together, we will guide our business to excellence. a more diverse, equitable and inclusive workplace with the launch of our Unity and Action platform. Sincerely, Dennis Organ President and CEO Smithfield Foods, Inc. 2020 SUSTAINABILITY IMPACT REPORT IMPACT 2020 SUSTAINABILITY 3 Q&A With Our Chief Sustainability Officer Ahead of the publication of our Sustainability Impact Report, we spoke with Stewart Leeth, INTRODUCTION our chief sustainability officer, about our achievements in 2020 and the opportunities ahead. Q: As your sustainability strategy evolves, Together, they are helping us progress to our new Smithfield is introducing three new pillars: goal of companywide International Organization for Diversity, Equity and Inclusion; Health and Standardization (ISO) 45001 Occupational Health and Wellness; and Worker Health and Safety. Tell Safety certification by 2025. They are also responsible us about the new pillars and how you see them for a Smithfield safety record that not only beats our advancing the company’s sustainability strategy industry peers, but also tracks better than a broad range and overall goals. of nonmanufacturing industry sectors. A: The introduction of our new pillars is consistent Q: The pandemic has shed light on the fragility with the breadth of our sustainability strategy and how of the global food system and worsened food it has evolved over time. They represent areas that insecurity issues in the United States and globally. are important to the company and our stakeholders. How did Smithfield’s sustainability programs and Historically, Diversity, Equity and Inclusion and Worker systems address these challenges? Health and Safety have always been elements of our People pillar. Now, as stand-alone priorities, we can A: The pandemic has made people think about where highlight our singular efforts and accomplishments their food comes from and has reminded us that for under each. For example, through our comprehensive most of human existence, the food supply has been Unity and Action strategy, which we announced precarious. In contrast, the quantity, quality and internally in June, we acknowledged that we can accessibility of food produced today is much better expand our efforts to create a more inclusive culture at than in the past. Smithfield serves an important role Smithfield and support a more equal and just society. in this regard by continuing to produce safe and We believe that requires action, above all. Our actions affordable food responsibly — and especially during and dedicated programs are focused in three areas — the pandemic — and investing in the health and safety making a meaningful impact in our management ranks, of our employees to ensure the continuity of the food creating educational opportunities to attract diverse supply. At the same time, we improved and expanded talent and broadening diversity across the agricultural our sustainability program. We significantly lowered the supply chain. Our Health and Wellness pillar gives us use of land, water, energy, feed and greenhouse gas an opportunity to highlight the importance of animal (GHG) emissions per pound of protein produced over protein in the human diet. We also call out how the time, and our efforts to continue those improvements animals we harvest for food provide byproducts that remain constant even through the pandemic. help the human condition in ways people don’t realize: heparin and insulin for diabetes management, valves Q: Despite the many challenges in 2020, what are for heart surgery, and regenerative innovations to build you most excited about in 2021 or beyond for the cellular materials for burns and injuries. future of sustainability at Smithfield? Q: Tell us more about the Worker Health and A: Looking ahead, it’s good to see that, even with Safety pillar, especially in the context of the the attention paid to the pandemic, sustainability COVID-19 pandemic. remains top of mind. Smithfield is well prepared. We’ve refreshed our sustainability platform for the A: Keeping our employees healthy and safe has been next 10 years and have goals and targets to address the critical focus of our response to COVID-19. We climate change, water, waste, worker safety, diversity invested more than $800 million in our overarching needs and all the issues that we’ve identified as critical
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