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SUSTAINABLE in EVERY WAY 2020 Environmental, Social, and Governance Report SUSTAINABLE IN EVERY WAY 2020 Environmental, Social, and Governance Report PEOPLE TECT PRO P L A N E T P L A N T P R O V I D E E PRODUC It’s why we’ve been able to supply one of the world’s most favorite foods for 70 years, and it’s why we’ll continue to do so for years to come. About Our Report Table of Contents We are pleased to publish Lamb Weston’s first Environmental, Social, Overview.............................4 and Governance Report. While this report focuses on our actions and accomplishments during our fiscal year ended May 26, 2019, as an Protect ..............................13 inaugural report it also covers initiatives that took place prior to this Plant .................................21 time period to provide context. The scope of this report covers Lamb Weston’s manufacturing operations in North America and China, Produce ............................29 except for employment numbers, which also include administrative and sales professionals. Lamb Weston’s farm and administrative Provide .............................39 offices are not included in the data reported in the Produce section. GRI Index .........................50 Sustainable agriculture data covers North America only. SASB Index ......................54 This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. We are also reporting to the Sustainability Accounting Standards Board (SASB) Processed Foods Standard. More information about our company can be found on our website. Sustainable in Every Way OVERVIEW A Message From Our CEO When we started the work on this report, it felt like a truly transformational time for our company. We experienced tremendous growth after becoming a stand-alone public company in 2016, and global demand for fries and other potato products continued to increase. As the publication date for the report drew nearer, things felt transformational in a different way as we faced a global pandemic. COVID-19 has forced us to take a step While some of the programs you’ll read back and analyze our business in a new about in this report are new and unique way. From how we ensure the safety of to Lamb Weston, our approach to topics Tom Werner our team members and our food to our such as sustainable agriculture, employee President and CEO interactions with our customers and our safety, and customer satisfaction is global business partners, everything unchanged. We’ve always believed in has changed. doing the right things the right way, and this sense of integrity has helped us in • Provide—By developing ground- Through all of this, we’ve maintained our today’s ever-changing environment. breaking new products at the Lamb focus on doing what we do best—making Weston Innovation Center and providing great fries—while finding new ways to In the pages that follow, you’ll see tools that help employees better work. Whether it’s helping our team how Lamb Weston’s core value of contribute to their communities. members work from home or instituting inventiveness—in the form of new new company-wide policies on safety and technologies and processes— Our vision is to become the world’s social distancing, we’ve worked quickly delivered results across our business number-one global potato company. And and with purpose to protect our people. in fiscal year 2019. This report focuses although our plan to get there may look Because our people are what make this on our impact on people and the planet different today than it did in 2019, we business work. through four key areas: won’t compromise our values or our ESG priorities. As our business and customers Their passion and purpose are • Protect—With robust programs, a learn from this situation and evolve, Lamb reminiscent of the ingenuity and culture of integrity, and automation Weston aims to remain a company that is focus of our founder, Gib Lamb, who that improves food safety and quality not only successful, but also sustainable in established this company 70 years ago. and keeps employees safe. every way. Despite the challenging landscape that • Plant—Leveraging long-term we are facing today, I’m excited to share relationships with our growers, and our inaugural ESG report, because the sharing best practices and new tools content within demonstrates our tradition to help optimize potato crop quality of responsibility and our commitment and yields. Tom Werner to excellence at every point in our • Produce—Through improved equipment President and CEO value chain. and practices that help us use less water and energy and reduce waste. Lamb Weston 3 2020 Environmental, Social, and Governance Report Sustainable in Every Way OVERVIEW Corporate Profile VISION To be the No. 1 global potato company. MISSION To create solutions that inspire and serve our customers and consumers with a food they love and trust. 1950 Founded Eagle, Idaho MAJOR PRODUCTS Headquarters • FRIES Straight Cut, Crinkle Cut, Twister®, CrissCut®, Wedge Cut 27 • SHREDDED POTATOES production facilities1 • DICED POTATOES • FORMED POTATOES #1 Hash Browns, Tater Puffs® in North American frozen potato category • CHIPS #2 • MASHED POTATOES in global frozen potato category • APPETIZERS • VEGETABLES 7,600 employees2 1As of June 2, 2020; includes joint ventures. 2As of May 28, 2019; excludes joint ventures. Lamb Weston 4 2020 Environmental, Social, and Governance Report Sustainable in Every Way OVERVIEW Corporate Profile 2020 Global Footprint* Taber, Alberta Lamb Weston/Meijer Global Wisbech, UK Breda, The Netherlands headquarters Kruiningen, Holland Lipetsk, Russia Eagle, ID Park Rapids, MN Corporate offices Oosterbierum, Holland Hollabrunn, Austria Bergen op Zoom, Holland Seoul, Korea Kennewick, WA Shangdu, Inner Mongolia Broekhuizenvorst, Holland Tokyo, Japan Pacific NW Delhi, LA North America sales office Beijing, China operations Naperville, IL Shanghai, China Columbia Basin Dubai, U.A.E. Blends, WA Connell, WA Pasco, WA Paterson, WA Mexico City, Mexico Quincy, WA Guatemala City, Guatemala Richland, WA New Delhi, India Warden, WA Panama City, Panama Singapore Boardman East, OR Bogotá, Colombia Boardman West, OR Boardman Center, OR Hermiston, OR São Paulo, Brazil American Falls, ID Twin Falls, ID Buenos Aires, Queensland, Australia Argentina Sales office Hallam North, Australia Production facility Hallam South, Australia Local sales representation *Includes joint ventures Financial Profile Customer Segments Compelling NetFinancial Sales ($ In Millions)Profile FY19 Net Sales ($ In Millions) I II Customer Segments 4000 4% Other 3500 13% Retail 3000 2500 2000 1500 1000 500 0 FY15 FY16 FY17 FY18 FY19 31% Foodservice 52% Global $2,925 $2,994 $3,168 $3,424 $3,757 Lamb Weston 5 2020 Environmental, Social, and Governance Report Sustainable in Every Way OVERVIEW P EOPL How We Make a Favorite Food, E PROTECT Sustainably P L A Stewardship at Lamb Weston runs deep. Sustainability N E is threaded through our entire operation, from our T production facilities, to the way we source, store, and P R transport products to our customers around the globe. P O L V Every step of the way, we are committed to safety and A I N D T quality while we work to preserve and protect nature E and its resources; using only what is necessary, and striving every day to enhance the livelihoods of our team members and surrounding communities. With 70 years of experience and more than 7,000 potato experts around the globe, no one understands french fries better than we do. By continuously creating new PR E products and processes, we’ve made fries accessible ODUC to more people than ever before. Our sustainability approach consists of four main focus areas, which reflect the steps in our value chain. PROTECT PLANT Ensure the safety of all who Employ sustainable agricultural come into contact with practices on our own farm and our products and our business, ask our growers to participate whether the employees in our facilities in sustainable programs. or the consumers who eat our fries. PRODUCE PROVIDE Continually look for ways to turn Make a positive impact by meeting the potatoes into fries more sustainably— needs of our customers, consumers, including operating efficiently and employees, and communities. responsibly sourcing inputs. Lamb Weston 6 2020 Environmental, Social, and Governance Report Sustainable in Every Way OVERVIEW Material Lamb WestonLamb Materiality Weston Matrix Materiality 201 Matrix Food Safety Customer Health Sustainable Topics & Safety Ethics & Agriculture Integrity Sustainability Strategy & Vision Lamb Weston conducted its first Partnerships & Industry Collaboration materiality assessment in 2018 with the Energy Water Use Use Brand goals of identifying the most important Food Waste Reputation Occupational issues to our stakeholders, determining Climate Employee Health & Safety Change Benefits & Compliance/ current gaps in our sustainability Wellness Regulation program, and gathering feedback on Packaging Training & Leadership Education Engagement what we are doing well and where we ternal taeholder mportane Community Outreach have room to improve. Materiality survey Employee participants included both internal and Engagement external stakeholders, such as Lamb Weston employees, customers, growers, nternal taeholder mportane and suppliers. Governance Environment Social While managing through the impact of among our top material topics, and that has helped guide our COVID-19 on our business, we have ESG decisions. We plan to refresh this assessment in 2021, which been mindful that Food Safety and will
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