2018 CR Report About This Report
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2018 CR Report About This Report 1 CSR.HORMELFOODS.COM O ur progress is measured not only in the dollars we make, but in the lives we touch and the communities we lift. For the last 13 years, we have been proud to share our corporate responsibility efforts and achievements. Our 2018 report has been developed in collaboration with the Hormel Foods Corporate Responsibility Council and other company experts, and was reviewed and approved by the council, experts and the respective vice presidents who oversee relevant topics. Additionally, the report has also been reviewed by our executive-level Corporate Responsibility Steering Committee. As in past years, this 2018 Hormel Foods Corporate Responsibility Report is an annual report designed to provide useful information for our stakeholders, who include employees, customers, consumers, investors, suppliers, nongovernmental organizations, government agencies and communities. It follows the GRI Standards established by the Global Reporting Initiative (GRI) and covers anecdotal and benchmark data from fiscal year 2018, unless otherwise noted. All other boundary- related information for this report can be found in the boundary and measurement section. Our previous reports covered fiscal years 2006 to 2017. 2 CSR.HORMELFOODS.COM Our Goals Our 2020 environmental goals are being measured against base year 2011 and include greenhouse gas (GHG) emissions, energy, water and solid waste. Our packaging minimization goal was established in fiscal year 2012, and we also monitor progress toward goals designed to support animal care, sodium reduction, innovation, employee safety, inclusion and diversity, and communities. Many of our goals support the Sustainable Development Goals to end poverty, protect the planet and ensure prosperity for all. CONTACT US We gladly welcome your feedback about this report and/or corporate responsibility at Hormel Foods. Email [email protected] Call Consumer Engagement 1-800-523-4635 Use our Contact Form HORMELFOODS.COM/ABOUT/CONTACT-US 3 CSR.HORMELFOODS.COM GREENHOUSE GAS EMISSIONS ENERGY GOAL SURPASSED WATER GOAL SURPASSED GOAL: Reduce GHG emissions by GOAL: Reduce nonrenewable energy GOAL: Reduce water use by 10% by 2020. 10% by 2020. use by 10% by 2020. PROGRESS PROGRESS PROGRESS After exceeding our goal to reduce water In 2018, we reduced over 8,900 In 2018, we reduced energy use by use in 2016, we implemented additional metric tons of GHG emissions from more than 128,000 MMBtu and projects that reduced water use by over our manufacturing operations — surpassed our nonrenewable energy 61 million gallons in 2018. 67 percent of our goal when combined use reduction goal. with our previous progress. 4 CSR.HORMELFOODS.COM SOLID WASTE GOAL SURPASSED PACKAGING MINIMIZATION ANIMAL WELFARE GOAL: Reduce solid waste sent to GOAL: Reduce product packaging GOAL: Maintain the highest standards landfills by 10% by 2020. by 25 million pounds by 2020. for animal welfare and handling PROGRESS PROGRESS throughout our entire supply chain. After surpassing our goal in 2014, we In 2018, we reduced product packaging PROGRESS continue to achieve additional reductions. by 2.5 million pounds* — 99 percent In 2018, more than 2,000 audits were In 2018, we implemented projects that of our goal when combined with our conducted to ensure the accountability reduced the amount of solid waste sent previous progress. of our standards. to landfills by 72 tons. SODIUM REDUCTION GOAL: Reduce sodium levels in select products within our branded retail product portfolio by an average of 15%. 28% 15% 11% 18% CHI-CHI’S®, Herdez® Hormel® Hormel® Cure 81® Hormel® and La Victoria® tortillas chili with beans retail hams smoked pork loins 28% 19% 8% 21% Hormel® Hormel® Compleats® Hormel® Valley Fresh® Canadian bacon microwave meals refrigerated entrees chicken and turkey 5 CSR.HORMELFOODS.COM INNOVATION EMPLOYEE SAFETY INCLUSION AND DIVERSITY GOAL: Deliver 15% of sales from new GOAL: Provide a safe workplace for GOAL: Promote a more inclusive and products developed and launched in all employees and reduce our injury/ diverse workplace. the previous five years. illness rates each year. PROGRESS PROGRESS PROGRESS 2017 2018 We have nine employee resource groups At the end of 2018, over 14% of our in place to support our efforts. sales came from innovative new items. Total Case Incident Rate 2.72 2.7 Days Away From Work 0.58 0.46 Injury And Illness Days Away, 1.87 1.89 Restricted Or Transfer COMMUNITIES GOAL: Help others through our focus areas of hunger, education and supporting the local communities where we operate. PROGRESS We donated more than $15 million in cash and products in 2018 — a company record. *Savings are estimated annualized savings based on a full year of volume 6 CSR.HORMELFOODS.COM From our CEO We are proud of the progress we have made as a leading corporate citizen in our industry and are excited to share our 13th annual report with you. At Hormel Foods, we know that building social value and creating economic value are not competing goals, and we are inspired to do our part in making the world a better place. In fact, we continue to be recognized for our efforts. We were honored to once again be named as one of the 100 Best Corporate Citizens by Corporate Responsibility Magazine. In addition, we were named one of the World’s Best Employers by Forbes, a Best for Vets Employer by Military Times, and received a Global Impact Award from Convoy of Hope for our in-kind donations. As part of Our Food Journey™, we aim to produce food responsibly for customers and consumers around the world by: → Investing in our people and partners; → Improving communities around the world; and → Creating products that improve the lives of others. I’m pleased to share the following 2018 highlights in these areas: OUR GOALS After surpassing our goal to reduce solid waste sent to landfills and water use by 10 percent by 2020, we continued to imple- ment projects to achieve further reduc- tions. We are pleased to report that we surpassed our nonrenewable energy use reduction goal in 2018. We remain on track to achieve our goal to reduce product packaging by 25 million pounds by 2020, and we expect to meet our greenhouse gas emissions reduction goal in 2020 as we work with our partners to bring a 74 MW renewable wind field online. 7 CSR.HORMELFOODS.COM WATER STEWARDSHIP INCLUSION, DIVERSITY, In addition to reducing water use by AND EMPLOYEE SAFETY 61 million gallons, we helped launch Our inspired employees are the corner- the Cedar River Watershed Partnership – stone of our company. We continue to place a public-private partnership aimed at great emphasis on our diversity and inclusion improving water quality in this watershed efforts and have nine employee resource within our supply chain. The partnership groups in place. We also continue to put the held several events for farmers in 2018 and safety of our employees first by focusing helps farmers in the watershed in southern on training, audits and improving our safety Minnesota become certified through the performance year over year. Minnesota Agricultural Water Quality Certification Program. CHARITABLE GIVING We donated $15 million in cash and ANIMAL WELFARE AND products. This includes $7.2 million ANTIBIOTIC STEWARDSHIP in hunger donations, our donation To ensure the accountability of our high of 2.5 million cans of SPAMMY® standards for animal care throughout (a shelf-stable poultry product to our supply chain, more than 2,000 help prevent childhood malnutrition audits were conducted. In calendar year in Guatemala), and more than $967,000 2018, Hormel Foods along with other in education donations. food companies, retailers, livestock producers and trade and professional associations, announced a comprehensive framework to strengthen stewardship I would like to thank all of our team of antibiotic use in food animals. The members as well as our partners and framework was part of a two-year dialogue suppliers, as it takes everyone working with stakeholders, moderated by together to achieve these outstanding the Farm Foundation and Pew Charitable results. And while we celebrate these Trusts, to ensure that antibiotics are achievements, we realize there is more used judiciously throughout production to accomplish on this journey. to protect animal and public health. Please read more about our progress in this report. As always, I encourage you to email [email protected] to share any SODIUM REDUCTION AND feedback you may have about our report or CLEAN-LABEL INITIATIVE EFFORTS our corporate responsibility efforts. We launched over 600 new retail Thank you, and foodservice items, with many Jim Snee targeted toward our sodium reduction and clean-label initiative efforts. Chairman of the Board, President and Chief Executive Officer 8 CSR.HORMELFOODS.COM Key Topics Assessment On a biennial basis, we use a third party to help research, analyze and assess the key topics affecting Hormel Foods and the food industry. To inform our reporting and corporate responsibility objectives, Hormel Foods engaged with BSR in 2017, a nonprofit sustainability consultancy and business network, to help us identify, prioritize and understand the topics most relevant to our business and our stakeholders. Topics were identified based on our prior assessment, industry trends and global corporate responsibility megatrends. The topics were then prioritized based on input from senior executives, our Corporate Responsibility Council and key external stakeholders, whom offer a broad