WM. WRIGLEY JR. COMPANY 2004-2005 ENVIRONMENTAL, SAFETY AND HEALTH REPORT Dedicated to Continuous Improvement WRIGLEY’S ENVIRONMENTAL, SAFETY AND HEALTH (ESH) MISSION

Be a responsive organization that integrates environmental, safety and health solutions into the business of making Wrigley products around the globe.

Through leadership, innovation, knowledge sharing and effective communication, we will provide a safe workplace that encourages continuous improvement.

Welcome to Wrigley’s first environmental, safety and health (ESH) performance report, which provides a snapshot of our performance for the 2004 and 2005 calendar years. This report will help you understand how ESH performance is managed at Wrigley, and how it supports our business goals.

The safety performance indicators in this report begin to establish baselines for performance measurement in future-year reports. Our goal is to provide additional metrics over time as we continue to collect environmental, safety and health data and standardize our methods for doing so companywide. The metrics-related information relates to our wholly owned manufacturing facilities around the world, but this report does not cover facilities added by acquisition in 2004 and 2005.

Inside This Report

• Senior Management Message 3

• Integration of ESH into Wrigley Business Strategy 4

• Highlights of Wrigley’s ESH Strategic Business Plan 4

• Global ESH Policy, Organizational Structure and Standards 5

• A Commitment to Associates and Community Safety 9

• Environmental Performance 10

About Wrigley

Headquartered in the historic Wrigley Building in downtown Chicago, Illinois, U.S., the Wm. Wrigley Jr. Company employs nearly 15,000 associates, and manufactures products in 24 facilities in 14 countries around the world.

The Wm. Wrigley Jr. Company is a recognized leader in confections with a wide range of product offerings including gum, mints, hard and chewy candies, and lollipops. The Company has global sales in excess of $4 billion and distributes its world-famous brands in more than 180 countries. Three of these brands – Wrigley’s Spearmint®, ®, and ® – have heritages stretching back more than a century. Other well-loved brands include ®, ®, ®, Boomer®, Pim Pom®, ®, ®, ®, ®, ®, ®, Creme Savers®, Eclipse®, ®, Solano®, Sugus®, P.K.®, and Cool Air®`.

Please review our annual report for a full listing of facilities and brands, or visit our Web site at www.wrigley.com. SENIOR MANAGEMENT MESSAGE

The simple pleasure of chewing gum or savoring a confection is made possible through a complex set of operations, hard work and the use of natural resources. Conducting our business in a socially responsible fashion means that every Wrigley associate must work toward a safe, healthy and secure workplace, and act with respect for the community and environment. To help fulfill our mission, Wrigley employs a global policy, team and strategy dedicated to the continuous improvement of our ESH performance.

In recent years, we have become increasingly proactive and systematic in our management of ESH performance. We have learned that striving for ESH excellence not only benefits society, but it also enhances Wrigley’s ability to compete in the global marketplace by increasing productivity, reducing absenteeism, costs and liabilities, and encouraging communities to welcome our facilities and products. It also helps our global facilities to better anticipate and respond to regulatory changes around the world.

Foremost, it’s a way of doing business that’s integral to our company’s vision of “Wrigley Brands Woven Into the Fabric of Everyday Life Around the World.”

As you read this report, you'll find examples of our global commitment to care for the environment, our responsibility to protect the safety and well-being of our associates and a continuous focus on the advancement of our environmental, safety and health programs and performance. Duke Petrovich Senior Vice President and Chief Administrative Officer

Duke Petrovich Senior Vice President and Chief Administrative Officer

Doing business in a responsible manner brings value to people, the ‘‘ environment and our company. Duke Petrovich ’’

3 INTEGRATION OF ESH INTO WRIGLEY BUSINESS STRATEGY Designed to successfully implement the global ESH Policy, our global ESH Strategic Business Plan embraces the philosophy of continuous improvement based on three key principles:

Do It! We will continually increase our efforts to improve ESH performance and create a working environment that is comfortable and free from recognized hazards, and that minimizes our impact on the environment.

Measure It! We will use systematic methods to measure our performance against our ESH Strategic Business Plan.

Communicate It! We will communicate on a regular basis regarding our ESH programs and performance, and engage in open dialog with both internal and external stakeholders with the aim of soliciting feedback to improve performance.

The Wrigley ESH Strategic Business Plan supports and advances Wrigley’s overall business strategy.

ESH contributes to Wrigley’s ambitious growth goals in many ways. Through involvement in front-end planning and process innovation, we support the development and manufacture of new products. For example, pellet gums require significantly more water to produce than traditional stick gums. ESH’s efforts to reduce water usage and recycle wastewater have helped us to cost-effectively satisfy customer demand for these products.

Sound ESH management helps Wrigley expand into new geographies by helping to ensure compliance with all local safety and environmental laws, and by engaging communities in ESH initiatives. When considering whether to acquire real estate, we factor in the results of the environmental due diligence. If the acquisition closes, the ESH Team assists the new facility in adapting Wrigley’s ESH Standards.

ESH also helps Wrigley provide the highest quality products at the lowest possible cost in many ways. The integration of ESH management systems with quality management systems enables us to manufacture and deliver the best product. Our efforts and dedication to associate safety and health result in increased productivity, reduced absenteeism and lower liabilities. Our programs to reduce energy, natural resource use and waste improve our company’s bottom line.

Finally, ESH assists in the corporate goal of developing our people by stressing training and encouraging membership in a variety of peer-learning organizations.

HIGHLIGHTS OF WRIGLEY’S ESH STRATEGIC BUSINESS PLAN Wrigley’s ESH Strategic Business Plan is a dynamic document that accommodates evolving issues. Generally speaking, the plan charges our ESH Team to:

• Provide ESH information, communication and aid to key decision makers in other critical business areas.

• Improve the work environment to improve production efficiency, reduce workplace injury, lost time and absenteeism and create a more desirable place to work.

• Develop and maintain an ESH Metrics System to measure facility performance and to show the true costs of ESH impacts for ease of budgeting.

• Build solid relationships with our key internal customers and local ESH associates.

4 • Develop the skills of our local ESH associates.

• Build shareholder value by helping Wrigley to manage our business in an ethical, socially responsible manner.

In addition to further integrating ESH into Wrigley’s overall business strategy, our corporate ESH organization also aligned with the company’s Lean Manufacturing strategy in 2005. Lean Manufacturing is an operations-focused strategy to improve quality, increase efficiencies and lower costs companywide. During the reporting period, the ESH organization continued to formalize an ESH component for the system. GLOBAL ESH POLICY, ORGANIZATIONAL STRUCTURE AND STANDARDS Guiding Continuous Improvement: The Global ESH Policy Based on Wrigley’s ESH Mission, our global ESH Policy aligns directly with the cornerstones of Wrigley’s Code of Business Conduct: innovation, ethics, communication and respect for people. We implement this Policy through our global ESH organization, standards and guidelines, and the ESH Strategic Business Plan. Companywide and facility-level programs that address safety, resource and energy usage, waste reduction and other issues, are derived from these guiding principles and documents.

Wrigley’s Global ESH Policy This Policy applies to the Wm. Wrigley Jr. Company including its domestic and international associated companies and operations. As responsible members of the Wrigley Team, we recognize the need to conduct all of our activities in a manner that seeks to protect the well-being of the environment, our associates and others, including contractors, visitors and our communities, who may be affected by our processes or operations.

Specifically, we commit to:

1. Comply with all applicable environmental, safety and health laws and regulations.

2. Establish and maintain a safe and healthy workplace for all those who we employ.

3. Continuously improve our environmental, safety and health performance through the implementation of internal initiatives, goals, programs, policies and procedures and the adoption of proven best practices.

4. Ensure through effective communication, that all of our associates understand the impact that their actions can have on the environment, their own safety and the safety of others.

5. Integrate environmental, safety and health considerations into our business planning, decision-making process, manufacturing operations and our products and services.

6. Conserve resources and minimize waste by the promotion of reduction, reuse and recycling methods.

7. Encourage our suppliers, distributors and contractors to follow procedures that will benefit the safety and health of those who may be affected by their business activities.

8. Encourage the correct disposal of all forms of waste arising from the manufacture or use of our products.

9. Provide the resources, training and support to make this policy effective.

10. Review, update and communicate this policy on a regular basis.

A strategic approach to ESH provides the structure to effectively manage ‘‘ our commitments to society, our associates and our shareholders.

Andy Holynskyj Director of ESH’’ 5 Centralized Accountability With a Regional Emphasis: Wrigley’s Global ESH Organization Reporting directly to the Senior Director Global Quality, Wrigley’s ESH Team is structured to ensure adherence to the global ESH Policy while strongly supporting regional needs. The Director of ESH oversees strategic direction and focuses on the improved integration of ESH considerations into mainstream business practices.

Regional ESH Managers, assisted by the global ESH Regional Support Manager, serve as decentralized, in-house experts that closely lead and support corporate, regional and factory/facility ESH strategies.

Regional responsibilities are divided into three broad geographic areas:

The Americas – which include North, Central and Latin America.

EMEAI – which includes Europe, the Middle East, Africa and India.

Asia/Pacific – which includes Asia, Australia and New Zealand.

Local ESH associates help to ensure that our global ESH Policy is carried out at the facility level.

Global ESH Organization and Reporting Structure

Board of Directors

Chairman of the Board, President and The localized emphasis is Executive Chairman of the Chief Executive Officer Company invaluable to our operations ‘‘ because it strongly supports regional performance. Senior Vice President and Chief Administrative Officer Samuel Yang Director of Manufacturing Guangzhou, China ’’

Senior Director Global Quality

Director of ESH ESH Administrative Assistants

6 Americas EMEAI Asia/Pacific ESH Regional Regional ESH Manager Regional ESH Manager Regional ESH Manager Support Manager

Americas EMEAI Asia/Pacific Local ESH Associates Local ESH Associates Local ESH Associates Global ESH Standards and Guidelines To support our ESH associates globally, we developed ESH Standards and Guidelines. These provide guidance, information and resources, and are readily accessible through our intranet site.

ESH Standards Our ESH Standards contain 26 specific ESH requirements, supported by guidelines, representing minimum standards that must be met at every Wrigley production facility regardless of whether or not they are required by existing local regulations. The standards are written so that each factory can use innovative approaches to meet the requirements.

For example, we have an ESH management system standard that requires each manufacturing facility to develop and maintain an ESH management system, which helps facilities objectively manage ESH aspects, impacts and risks. Each facility has a high degree of flexibility in developing and implementing a system that supports its unique operating circumstances.

Management System Certifications Our ESH management system requirements are closely based on the International Organization for Standardization’s (ISO) 14001 environmental management system standard and the Occupational Health and Safety Assessment Series (OHSAS) 18001 standard. When it makes good business sense, our facilities are encouraged to become ISO 14001 certified. A number have achieved certification, while others are working toward that goal. By the end of 2005, factories in Asquith, Australia; Bangalore, India; and Poznan, Poland had achieved ISO 14001 certification. Our factory in Poznan had also achieved OHSAS 18001 certification. Additionally, our Silao factory in Mexico received the Mexican Labor Agency’s Safety Factory certification.

To assist in standards implementation and provide facilities and our internal supply chain with a compliance measurement tool, Wrigley developed an internal audit system that includes comprehensive audit protocols and a compliance scoring system. Each factory completes the audit protocols annually, and internal auditors from the Corporate ESH organization verify audit responses biannually.

ESH Guidelines Relevant ESH procedures and information are typically documented as formalized guidelines and made available on Wrigley’s ESH intranet site. New guidelines are added periodically. Examples of guidelines include LockOut/TagOut, Confined Space Entry and Underground Storage Tank Management.

Managing and Measuring ESH Performance To continuously improve ESH performance, we monitor and measure a variety of indicators. Our centralized database captures ESH metrics worldwide. This system is maintained on an external Internet site and is accessible to associates worldwide.

Programs designed to improve ESH performance originate at both the corporate and facility levels. Facility-level programs are designed to support companywide performance initiatives, such as our Pollution Prevention/Energy 7 Efficiency (P2E2) program, as well as address regional or locale-specific issues. Compliance In 2004, we received two notices of violation (NOVs) for environmental and safety violations, and a $10,487 penalty. The Work Cover Authority of New South Wale issued the $10,487 penalty to the Asquith, New South Wales, Australia, factory for machinery safeguarding issues. In 2005, Wrigley received 10 notices of violation (NOVs) and a total of $10,452 in penalties. Safety penalties over $1,000 included a $6,500 penalty issued to the Yorkville, Illinois, , factory by the U.S. Occupational Safety and Health Administration (OSHA), and a $1,950 penalty issued to the Gainesville, Georgia factory by OSHA. Environmental penalties over $1,000 included a $1,420 penalty issued to the Chicago, Illinois factory by the Metropolitan Water Reclamation District of the Greater Chicago area.

Communication and Training Effective corporate- and facility-level communications and training programs play a central role in ESH performance improvement. Some of our factory programs have even attracted external recognition. For example, Wrigley Australia’s Environmental Awareness Training Program was identified by the Technical and Further Education Institute of New South Wales – Australia’s largest training provider – as an example of training best practice. Associates received an average of 2.7 hours of ESH training per associate per month in 2004 and 4.9 hours per associate per month in 2005.

Our ESH intranet provides easy access to a wealth of resources such as policies, standards and material safety data sheets. It also enables the company to quickly report incidents and receive ESH alerts and other news. Wrigley’s ESH Web-based internal newsletter, The Informant, helps “gossip” factory success stories and features ESH news and best practices from our factories worldwide.

Associates also keep their ESH knowledge current through annual regional ESH conferences. These conferences enable ESH professionals – as well as representatives from other areas, such as engineering and factory management – to share best practices, train, and engage in strategic planning for the following year, as well as discuss region-specific issues. In 2004, in addition to regional conferences, we brought together all of our ESH professionals for a conference in Barcelona, Spain, to share improvement strategy, priorities and experiences worldwide. The 2005 Asia/Pacific regional conference, which included associates from India, was held in Tagatay, Philippines; and the Americas regional ESH Team met in Guanajuato City, Mexico.

Stakeholder engagement also contributes to performance improvement. This report is the primary means for communicating Wrigley’s ESH progress to a wide range of internal and external stakeholders. Within our neighboring communities, facilities and associates strive to cultivate productive relations through volunteering and financial contributions.

The ESH Team has long partnered with external organizations to improve performance, stay abreast of trends, and assist our communities. We belong to the following U.S.-based national and regional organizations:

• American Society of Safety Engineers

• Great Lakes Center for Occupational and Environmental Safety and Health

• Illinois Safety Council

• National Association of Environmental Management

• National Safety Council

Outside of the United States, we belong to the following organizations: 8 • British Safety Council

• Chartered Business Institute

• Institution of Occupational Safety and Health, United Kingdom

• Royal Society for the Prevention of Accidents, United Kingdom A COMMITMENT TO ASSOCIATES AND COMMUNITY SAFETY Keeping Wrigley associates safe on the job – and our neighbors confident in our company’s ability to operate responsibly – are the main priorities of our safety programs.

Safety Metrics Lost Workday Case Rate (Frequency) The methodology we use to calculate safety metrics conforms with the Global Reporting Initiative’s Technical Protocol for 2.5 2.5 2.3 Health and Safety.

2.0

1.5

1.0 Facility- and Region-Specific Safety Initiatives 0.5 A Focus on Machinery Safety, Asia/Pacific Region and India 0.0 2004 2005 Machinery safety regulations vary from country to country, and feature different levels of complexity. The goal of zero associate access to hazardous machinery points remains consistent companywide. As with many Wrigley standards, Lost Workday Case Rate (Severity) Wrigley’s Machinery Safety Standard meets and often exceeds national and local regulatory requirements. During the 50 45.7 reporting period, our factories in the Asia/Pacific region and India prioritized machinery safety. Their progress is the single 40 38.3 largest machinery safety upgrade in our company since the promulgation of the European Union’s Machinery Directive. 30 In the Asia/Pacific region alone, Wrigley factories implemented more than 400 machinery safety upgrades over the course 20 of the reporting period. 10 The Safety First Culture, Plymouth, United Kingdom 0.0 2004 2005 In 2003, Plymouth factory leadership decided to fundamentally change the way safety was managed and perceived. The factory shifted to a more proactive approach that ingrained health and safety (HS) as a first-priority value. Factory management clearly communicated its change in commitment, and delivered on it by reinforcing existing processes, communicating continuously, incorporating HS standards into line management objectives, making safety a factor in associates’ annual bonus – and doubling the safety budget to allow for mandatory HS training and accreditation for all associates. The factory also broadened the availability of preventive health services, allowing associates to take more control over their well being. By 2004, incidents had decreased by 15 percent, and the factory had realized impressive savings from reduced lost time and enhanced productivity.

Increasing Awareness Through Involvement, Yorkville, Illinois, United States In addition to its systematic approach to safety improvement, the Yorkville factory implemented a number of creative safety incentive programs for engaging associates in performance improvement. These included safety drawing contests for associates’ children and a safety baseball game for associates. Through these efforts, Wrigley associates were continuously versed in safety issues, and their role in identifying and preventing hazards.

The “Safety Pays” Program, Gainesville, Georgia, United States In 2004, Gainesville factory safety leadership shifted to a behavior-based safety program called “Safety Pays.” The program was designed to heighten safety awareness daily through incentives and communication. From safety bingo, to safety messages and performance updates around the factory, to quarterly individual awards, the factory instituted a number of innovative ways to raise awareness. The program has produced impressive performance gains. In addition to keeping associates safer, Safety Pays has reduced Workers’ Compensation costs by $246,229 in 2005, compared with costs in 2003.

Lean Safety Kaizen Event, Toronto, Ontario, Canada Kaizen is a structured method for continuously improving processes through project teams that focus on making significant, low-cost changes within short time periods, usually five days. The Kaizen goal is to make improvements 9 through the application of knowledge and ingenuity, rather than costly solutions. In June 2005, a team from the Toronto factory’s Tab Wrapping Department participated in a pilot Lean Safety Kaizen event. Associates participated in a range of activities, including intense training in hazard recognition and control, and ergonomics, and a briefing on safety statistics. During the five-day event, the team focused on meeting performance goals established at the beginning. By the end, associates had met or exceeded these goals. Associates identified 44 safety and 15 ergonomic issues, and corrected 37 and 8 respectively. They raised their good manufacturing practices (GMP) score from 76 percent to 97 percent, and their “5S” (Sort, Set in Order, Shine, Standardize and Sustain) score from 2.6 to 4.0. The pilot program’s success is being considered as a model for possible events at other factories. Community Safety – Partnering With and Contributing to Local Fire Departments to Improve Emergency Response Biesheim, France At the Biesheim factory, a number of Wrigley associates – with functions as varied as operations, mechanics and supervisory – perform a dual role as fire fighters on the Biesheim Factory Fire Team. Some also volunteer as part of their local village’s fire brigade. The factory organizes a monthly training session for these personnel.

Since 1971, the Biesheim Factory Fire Team has conducted fire exercises with local city fire fighters. These efforts help our facility and the local departments prepare for real-life emergencies in our factories, as well as other manufacturing facilities. In 2004, the teams battled a mock fire and explosion at a sugar silo, and rescued a “victim” trapped on the roof. In 2005, the team performed a similar exercise, with emphasis on precautions for chemical hazards.

Northwestern Flavors, LLC, West Chicago, Illinois, United States In 2004, ESH professionals from Northwestern Flavors (NFI), one of Wrigley’s associated companies, began training local fire departments on Permit-Required Confined Spaces (PRCS) emergency response. The training efforts not only benefited the factory, but also qualified the fire fighters to assist other West Chicago industries and residents in confined space emergencies. In June 2005, training at the factory hosted 38 fire fighters from eight different local fire departments.

External Recognition for Outstanding Safety Performance In June 2005, Wrigley’s Gainesville factory in Georgia earned the National Safety Council Level 1 Green Cross for Safety Excellence Award based on 2004 safety performance.

The Guangzhou Economic Technology Development District awarded the Guangzhou, Guangdong, China, factory the 2004/2005 Safety and Fire Fighting Award for the quality of the factory’s safety and health training.

ENVIRONMENTAL PERFORMANCE At corporate and facility levels, Wrigley is committed to compliance and the pursuit of continuous performance improvement. Through the implementation of innovative techniques, technologies and solutions, our companywide Pollution Prevention/Energy Efficiency (P2E2) program focuses factory efforts on reducing waste and energy usage, conserving resources, identifying recycling and reuse opportunities, and generating bottom-line savings. First introduced to our global ESH community in 1999, Wrigley's P2E2 program brings together associates from many areas of the business to achieve these common performance goals. In addition to developing P2E2 programs, facilities tailor performance improvement efforts to their specific operational risks and opportunities.

Energy and Natural Resources Factory teams identify opportunities to reduce utility costs by minimizing the consumption of energy and natural resources, such as fuel and water. We have been collecting data on our energy and natural resource consumption for several years and continue to refine and standardize our collection processes companywide. We plan to include metrics on 10 these indicators in future reports. Partnering with Sydney Water for “Every Drop Counts,” Asquith, Australia Wrigley’s Asquith facility produces pellet gum and other pellet products, which require more water to manufacture than stick gum. To meet demand for pellet products and reduce water usage, this facility began participating in Sydney Water Corporation’s “Every Drop Counts” program in 2004. The state-owned company provided Wrigley with an extensive water usage audit, which required the installation of meters and data-logging devices throughout the factory. In return, Wrigley committed to reducing water usage. Using insights gleaned from the audit, the facility installed automated filling stations for pellet coating pans, and implemented conservation practices in cooling tower operations and amenities. As of 2005, this facility had reduced its water usage 29 percent since 2004, while production increased 6.6 percent. Sydney Water used Wrigley Australia’s efforts as a water conservation case study to help promote Every Drop Counts.

Air, Land and Water Emissions Wrigley has been collecting data on air, land and water emissions for several years and we are currently refining and standardizing our data collection processes companywide. In subsequent reports we plan to include metrics on these indicators.

Recycling in the Community, Silao, Mexico In partnership with the Municipality of Silao, Wrigley’s factory embarked on an initiative in 2005 that productively reused the factory’s wooden waste, created employment opportunities and promoted economic growth. The factory provided used shipping pallets and crates to a local business that employs elderly and disabled people. The pallets were then used to make children’s toys.

The “Cow Chow” Program, Gainesville, Georgia, United States Several years ago, the Gainesville factory developed an innovative way to refunnel some of its nonhazardous solid waste. Waste, such as returned gum, which once would have required costly disposal, is ground up into an animal feed additive and then sold to local farmers. In 2005, the annual savings were more than $220,000.

External Recognition for Environmental Performance The Sydney Water Corporation awarded Wrigley’s Asquith factory the Australia Water Conservation Award in 2004.

The New South Wales Government’s Department of Energy, Utilities and Sustainability awarded Asquith with a Representative Space Award for Energy Conservation in 2004.

11 Contact Us Andrew J. Holynskyj Director, Corporate Environmental, Safety and Health 312.645.3944 [email protected]

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