Triple Bottom Line Operating Unit SUSTAINABILITY HIGHLIGHTS FY2019 The Triple Bottom Line Operating Unit MISSION AND VISION FOR THE FUTURE We believe that food choices matter. Our mission is to care for the planet and its people through the food we make and the land we impact. Our vision is for General Mills to become the company most trusted to care for the planet and its people. Contents Becoming the Triple Bottom Line Operating Unit 1 Part one of this report summarizes our operating unit’s sustainability strategy and our recent process of developing key performance indicators to measure the social and environmental impacts of our business decisions. Introduction …………………………….........…..1 Our Sustainability Strategy………………..…. 3 Supply Chain……………………….……6 External Engagement………….…… 18 Internal Engagement…………...…..23 Updates from Our Brands 2 Part two describes key projects each of our brands has pursued in the past fiscal year. Annie’s………………………………………………..25 Cascadian Farm…………………….………….…33 EPIC Provisions..…………………………….…...39 Muir Glen………………………….…..…………...46 Notes General Mills’ fiscal year runs from the beginning of June to the end of May. This report covers June 2018 to May 2019. To learn more about all of General Mills’ sustainability initiatives, see the 2019 Global Responsibility Report at www.generalmills.com/en/Responsibility/Overview. Introducing the Triple Bottom Line Operating Unit In 2018, Annie’s, Cascadian Farm, EPIC Provisions, and Muir Glen joined together as a new Operating Unit within General Mills. We proudly named our group of brands after our fierce collective commitment to mission: The Triple Bottom Line Operating Unit is committed to driving positive outcomes for the planet, people, and profit. Every business depends on the planet and people, but accounting for impact across a triple bottom line is still uncommon. Yet it’s also an opportunity to adapt for innovation and growth. Accounting for the triple bottom line helps our operating unit grow Planet: Natural resources like soil, water, responsibly by: and air provide the foundation for our • Growing the financial top and bottom lines with a view business to exist. toward the long term • Counting externalities: knowing the true costs of operation, including social and environmental costs that don’t hit a traditional balance sheet People: We depend on consumers, • Finding win-wins through resource efficiency and waste employees, farmers, and supply avoidance chain partners for our business to • Creating value through authentic actions and messaging that thrive. drive trust, competitive advantage, and innovation Across the brands in the Triple Bottom Line Operating Unit, our mission is to care for the planet and its people through the food we Profit: Our financial make and the land we impact. While each brand has unique product business success fuels our offerings and core consumers, the decisions we make across all four stewardship of the planet brands strive to advance the balanced triple bottom line. and our service to people. In turn, the planet and people help fuel our profit. 1 | Triple Bottom Line Operating Unit - Sustainability Highlights FY2019 FY2019 By the Numbers 256 million lbs 500,000 lbs of organic 92% of synthetic pesticides of our products ingredients replaced with USDA certified purchased display the organic methods through our How2Recycle label purchase of organic wheat, oats, and tomatoes 11 million lbs of our product manufacturers of ingredients 44% shared detailed information 25,000 acres purchased with about their environmental and additional social initiatives through our of farmland represented in third-party self-assessment questionnaire response to the General Mills certifications Regenerative Agriculture Self- Assessment 22 external speaking 68% engagements and of our $1.5 million articles published by the Triple Bottom Line employees donated to organizations volunteered Operating Unit that protect and support sustainability team people and the planet Triple Bottom Line Operating Unit - Sustainability Highlights FY2019 | 2 From Farm to Yum: Our Sustainability Strategy Farm to Yum is the comprehensive framework that outlines our operating unit’s social and environmental goals across our office, supply chain, and the food system. Manufacturing & Agriculture dvance regenerative Packaging A Promote a more sustainable agriculture by partnering with supply chain through our farmers and suppliers, and by manufacturing and tracking agricultural practices packaging decisions. and outcomes. Communications Employees Elevate authentic Empower employees to marketing and outreach embed sustainability to engage all people in into their roles and to the transformation to a live our mission through more regenerative food daily actions. system. From Farm Partnerships & to Yum Policy Amplify our positive Workplaces Operate our offices and impact on food systems home farm sustainably to by learning from and set the stage for collaborating with partners employee decisions. and influencing policy. Developing Key Performance Indicators The business world has standard metrics to track and prioritize In selecting appropriate indicators, we’ve asked ourselves profitability. Developing equally strong metrics for impact on the questions such as: What long-term outcomes do we want to planet and people allows us to understand and act on a triple drive? How do we choose metrics that are salient to our bottom line business model. business and meaningful in their context? How do we collect data about our spheres of influence that we don’t Historically, companies have focused on financial metrics that are an integral directly control – like upstream impacts of our supply chain part of the business vernacular – metrics like return on investment, margin and downstream impacts of our messaging campaigns? This expansion, and cost savings. If we are to transition to a triple bottom line year, we worked with consulting group HowGood to answer business model, we need to balance those metrics with equally weighted these questions. metrics related to the planet and people. Each of our brands has a strong heritage of sustainability with its own approach to measuring impact. Annie's has published annual sustainability reports since 2011, aligned to the Sustainable Food Trade Association metrics; EPIC has published an annual Impact Journal since 2017; and both Muir Glen and Cascadian Farm have had a strong history of sustainability since their founding and through prioritizing organic products. As we advance our sustainability work and bring our four brands together as part of the Triple Bottom Line Operating Unit, we sought to develop KPIs that: Ecologists use keystone species as indicators to quickly • Articulate environmental and social impact with precision and credibility understand the big picture in a complex ecosystem. For • Can be embedded into all aspects of our business and considered in example, amphibians are highly sensitive to decision making processes environmental conditions, so they are a good keystone indicator for the overall health of an ecosystem – without • Can be calculated efficiently having to measure every single variable. • Resonate with and inspire a broad audience internally and externally • Are keystone indicators of the big picture Triple Bottom Line Operating Unit - Sustainability Highlights FY2019 | 4 Key Performance Indicators for the Planet and People We developed a set of 9 keystone KPIs that will help us track progress toward long-term outcomes. The KPIs will help us track data and make decisions that move our business toward the desired outcomes in each area. They may evolve over time with improvements in technology, science, and internal capabilities. We carefully selected long-term desired outcomes to ensure they will remain relevant to our business for decades to come. Additional details are included throughout the report. Below is each KPI on the left and its corresponding desired outcome on the right. Supply Chain Soil Health Animal Welfare Pesticide Avoidance Soil is regenerated Animals are Farms are healthy, Percent of acres in and sequesters Average % of healthy, able to Pounds of synthetic thriving, diverse express natural the supply chain carbon; reduced lifespan spent on pesticides replaced ecosystems that behaviors, and working to improve greenhouse gas pasture for animals contribute positively interact with USDA certified soil health emissions related in our supply chain positively to with the organic methods to soil degradation biodiversity ecosystem Shared Economic Value Manufacturing Emissions Circular Packaging People in our Percent of people upstream supply CO e emissions Robust markets in our supply chain 2 Greenhouse gas Percent of chain have the from manufacturing for recycled making progress emissions are net packaging that is resources they per pound of content and bio- toward a living zero circular need to survive product based packaging income and thrive External Engagement Internal Engagement External Communication Partnerships & Policy Internal Engagement Percent of our Number of Create an enabling Consumers believe consumers who regenerative environment for their food choices Full organizational believe their food agriculture and triple bottom line Percent of key roles have an impact commitment to choices have an triple bottom line businesses, with a working on priorities beyond their own the triple bottom impact beyond champions engaged focus on related to the KPI’s personal health and line at all levels