ANNUAL RESULTS. GOOD FOR YOU, GOOD FOR THE PLANET - ANNUAL RESULTS 2014

Transcription

1 ANNUAL RESULTS YOU, THE PLANET - ANNUAL RESULTS 2014

2 ANNUAL RESULTS METHODOLOGICAL NOTE The data presented in this document relate to the year 2013 and concern Barilla G. e R. Fratelli S.p.A., unless otherwise indicated. In the course of 2013, the Barilla Group signed an agreement for the sale of the company Lieken AG, owned since 2002, to the Czech group Agrofert AS. As a result, data on the latter company are not considered in the reporting perimeter. For all the objectives and indicators on Barilla s way of doing business: goodforyougoodfortheplanet@barilla.com

3 Index Only One Way of Doing Business 4 Goals for Good for You, Good for the Planet 8 1 Taste, Quality and Safety Correct Lifestyle 4 Quality Raw Materials 12 Barilla Center for Food and Nutrition 50 Quality and Food Safety 16 The Double Pyramid Model 52 Barilla in Brazil 18 Disseminating a Model 54 The First Restaurant in New York City 58 Educating People through Communication 60 2 Balanced Nutrition Local Communities 5 Better Nutrition 22 Stakeholder Engagement 66 Gluten Free New Products 24 From Japan: Respect in the Kitchen 68 The Giocampus Project 70 Barilla for Social Inclusion 72 3 Sustainable Life Cycle Product Life Cycle 28 Barilla People Diversity and Inclusion 78 6 Sustainable Farming 30 The sì.mediterraneo Project 80 Objective: Zero Deforestation 34 Animal Welfare 38 Barilla s Production 42 Barilla s Packaging 46

4 Only One Way of Doing Business PERFORMANCE IN % Volumes Compared to 2012 The Barilla Group has only one aspiration: doubling its business by Only by complying with a unique way of doing business: Good for You, Good for the Planet. This means that Barilla is committed to producing and delivering its products to people, promoting at the same time healthy and joyful food habits and constantly reducing its impact on the environment. This commitment is not being done only by the women and men who work for the Group, but through open, transparent and caring partnerships with the communities in which Barilla operates today and intend to expand on tomorrow. 85% Product volumes in line with Barilla s NUTRITIONAL GUIDELINES THE NEW LOGO YOU, THE PLANET POINTS OUT HOW MUCH THIS COMMITMENT IS IMPORTANT TO BARILLA AND A VITAL PART OF ITS DAILY ACTIVITIES. The DOUBLE PYRAMID is built by placing the Mediterranean Diet pyramid beside an environmental pyramid. This symbolizes a simple message: what is good for people s wellbeing, also helps to protect the planet. YOU, THE PLANET includes Barilla s commitment in the communities in which it operates and, in collaboration with whom, wishes to increasingly promote healthy and joyful eating habits that are environmentally friendly. CO₂ -27% CO₂ Emitted in absolute value by the plants compared to % Water Total consumption in the plants compared to

5 Goals for 2020 YOU THE PLANET COMMUNITIES What the world calls sustainability for Barilla is a unique and distinctive way of doing business: Good for You, Good for the Planet. This is the only way in which each person in the Group works and of which is an ambassador. By 2020 Barilla will have brought the joy of eating its products and wellbeing to more than 1 billion people around the world. QUALITY NUTRITION By 2020 Barilla will only be offering products at the bottom of the environmental pyramid, acting responsibly throughout strategic supply chains. ENVIRONMENT SUPPLY CHAIN By 2020 Barilla will spread its way of doing business Good for You, Good for the Planet to millions of people around the world through information, education and community activities, thereby improving social conditions and responsible choices. INFORMATION AND EDUCATION SOCIAL INCLUSION This is a strong identity that expresses the company s contribution to the sustainable development of the communities and the planet, and is an expression of its scrupulous attention to the quality of the products and processes that are an everyday part of the work of Barilla. Be the first choice of brand and product for people in regards to taste and nutritional profile. Beginning in 2014, an accurate analysis system has been prepared for this indicator. 100% of Barilla volumes to be in line with the most up-to-date standards of quality and food safety, as confirmed by external certification bodies. 98.5% of Barilla products are certified by an external body, in line with the most up-to-date international standards. Double the volume of products at the base of the Double Pyramid. Around the 80% of Barilla products are at the bottom of the nutritional pyramid. Increase from 70% (2010 value) to 90% the overall volume of the products in line with Barilla s Nutritional Guidelines. 85% of Barilla s product volume are in line with Barilla s Nutritional Guidelines.. 100% of Barilla products to be at the bottom of the environmental pyramid according to life cycle assessment methodology. To date, 90% of Barilla s products are in the lower part of the environmental pyramid. 30% reduction of water and CO₂ per ton of finished product in regards to the production process in the plants compared to Since 2010 Barilla has reduced per ton of finished product: the CO₂ emissions of 19% and the water consumption of 17%. 100% of the strategic raw materials to be purchased applying the most advanced responsibility standards (Strategic Supply Chains: Durum Wheat, Common Wheat, Tomato, Rye, Oil, Eggs, Packaging, Copackers). In 2014, Barilla will prepare its Sustainable Agriculture Code to extend to all its strategic supply chains within Develop Barilla Projects for Sustainable Cultivation for all the strategic supply chains at a global level. In 2013, the Durum Wheat pilot experiment has guaranteed the production of 10,000 tons. Starting from 2014, the tools tested in 2013 will be available for all the Italian production. Extend the sì.mediterraneo project to all Barilla employees around the world and to people, through catering and distribution channels. By now the sì.mediterraneo project has been expanded to over 6,000 employees of the company. Provide people with scientific based information on food and nutrition and offering young people educational paths. Barilla provides information through several initiatives promoted by its brands and, furthermore, carries out the Giocampus project. Drive continuous improvement in the condition of people in need, through food donations, social projects and education against food waste. Every year Barilla donates many tons of food to people in need: either through emergency plans to support people affected by natural disasters, or through donations of product to no profit organizations. 6 7

6 Good for You, Good for the Planet: Only One Way of Doing Business YOU, THE PLANET ACTIVITIES 2013 Barilla brings the joy of eating well to people through a wide range of products that are tasty, safe, and offer nutritional benefits. Right from the start, Barilla has always married the achievement of economic goals with social commitments to the areas in which it operates. Knowledge of social and economic contexts united with integrity, transparency and innovation, enabled the founders to identify their own entrepreneurial style, and hand it down from generation to generation. YOU, THE PLANET is the only way that Barilla has identified to grow and double its business by 2020, and through which it aims to strengthen its presence in existing markets and expand into emerging markets. GLOBAL Quality Raw Materials Quality and Food Safety Better Nutrition Palm Oil: Zero Deforestation Animal Welfare Barilla Production: Energy and Water People: Health and Safety Recyclable Packaging Education through Communication Stakeholder Engagement Social Inclusion Diversity and Inclusion CANADA Sì.mediterraneo USA Feeding America Sì.mediterraneo Academia Barilla Restaurant Gluten Free Pasta Smart Working Sustainable Farming GERMANY Sì.mediterraneo Smart Working Sustainable Farming SWEDEN Sì.mediterraneo Sustainable Farming SWITZERLAND Smart Working GREECE Sì.mediterraneo Sustainable Farming BRAZIL Best Marketing Award Sì.mediterraneo ITALY Sustainable Farming Integrated Supply Chains Gluten Free Pasta Oggi pasta con? Food Service Projects Giocampus Italian Food Bank Sì.mediterraneo Smart Working Cage-Free Hens FRANCE Sustainable Farming Smart Working Cage-Free Hens To have more information on each project, find out more on TURKEY Sì.mediterraneo Sustainable Farming SINGAPORE Sì.mediterraneo Smart Working JAPAN Chi-san Chi-sho Project RUSSIA Sì.mediterraneo 8

7 1 TASTE, 2 BALANCED QUALITY AND SAFETY Offer simple products, that are distinguished on the market for their taste, quality and safety. Eating a Barilla product must always be an enjoyable and safe experience. 3 SUSTAINABLE NUTRITION Offer a range of products that contribute to a nutritionally correct food model, designed to create wellbeing for those who choose them, and their families. The Barilla range can easily become part of a balanced diet in tune with the Mediterranean model. 4 CORRECT LIFE CYCLE Guarantee from the beginning of the cultivation of the raw materials up to the point of consumption a product life cycle that is respectful, from an economic, social and environmental standpoint. LIFESTYLE Suggest to people a healthy way of life through correct information, favoring food education and awareness of food s environmental impact. 1 Taste, Quality and Safety 5 LOCAL COMMUNITIES Listen, understand and exploit the needs, uniqueness, and rights of the local communities where the Group operates, promoting diversity and fostering inclusion through open and transparent partnerships. 6 BARILLA PEOPLE Promote the professional development of the people who work for the Group, encouraging their commitment and exploiting differences, so that they can be ambassadors of Barilla s identity, values and food culture in the world. OFFER SIMPLE PRODUCTS, THAT ARE DISTINGUISHED ON THE MARKET FOR THEIR TASTE, QUALITY AND SAFETY. EATING A BARILLA PRODUCT MUST ALWAYS BE AN ENJOYABLE AND SAFE EXPERIENCE.

8 Quality Raw Materials Barilla products come from raw materials that are simple and are grown and processed carefully to become pasta, sauces, and bakery products. The agri-food supply chain involves many players from the fields to supermarket shelves and Barilla plays an important role in this path. Barilla buys about 800 types of raw materials and 50 types of packaging materials from around 1,200 suppliers all over the world. The most important supply chains for Barilla are those of durum wheat, common wheat, rye, tomatoes, eggs and sugar. These raw materials are defined as "strategic", since they are the main ingredients of pasta, bakery products, and sauces. the world, and that help developing local supply chains. The main varieties used in Italy are Svevo and Aureo in the South of Italy, and Normanno in the North. The latest variety developed by Barilla is Pi Greco, that needs less fertilizer than other varieties with the same production yield. The new varieties, after being selected, are sent to multipliers who reproduce the seeds and send them on to producers organizations such as consortiums or cooperatives. Barilla follows the wheat from early stages of development up to the milling stage, carrying out constant checks on the raw material to ensure safety and quality. YOU The safety of the supply chain and the quality of the raw materials are key issues for the wellbeing of consumers. THE PLANET Varietal selection has enabled Barilla to obtain cereals that are equal the quality of the best wheat in the world and more sustainable from an environmental point of view. EARS OF WHEAT: A QUALITY SELECTION Barilla is the world leader in pasta production with approximately 1 million tons produced each year, which means a significant amount of durum wheat: about 1 million 400 thousand tons. This considerable amount of raw material must all comply with precise standards to ensure goodness, safety and quality. For example, the protein content of wheat is a very significant aspect in the quality of pasta as well as its al dente cooking performance. For this reason, Barilla pays very close attention to the selection of the types of grains it uses. The companies Barilla collaborates with make a scrupulous selection and development of varieties obtained thanks to traditional techniques that crossbreed different lines of non-gmo durum wheat. Through this commitment, for years, the company has encouraged the use of varieties of wheat that are the most suitable for different areas of cultivation around With all these stages in mind, Barilla has drawn up Specifications for the Cultivation and Storage of Wheat which it shares with producers organizations. In Italy the Growing Contracts for High Quality Wheat which Barilla signs with agricultural organizations envisage application of the Specifications to obtain qualitatively better wheat, higher production yield and fewer environmental impact. Furthermore, Barilla gives economic certainty and awards to farmers, depending on quality. This creates value throughout the supply chain, and encourages good agricultural practices which are beneficial to the entire agri-food system of the territories involved. In 2013, the Growing Contracts with national agricultural organizations accounted for 70% of the wheat purchased in Italy. COMMUNITIES Collaboration with seed producers and farms has allowed Barilla to improve the quality of the wheat, reach a higher production yield and fewer environmental impact, giving awards to farmers, depending on the obtained quality

9 THE TRUTH ABOUT BARILLA WHEAT WHAT YOU CAN READ ON THE WEB BARILLA ANSWERS* MYCOTOXIN LIMITS Barilla uses wheat with extremely high rates of mycotoxins (moldy), resulting from long storage at the lowest possible price. In 2006, the EU suddenly raised the accepted levels of mycotoxins present in durum wheat, so that many countries could produce durum wheat in unsuitable climates, looking only at the quantity, thereby destroying the farmers of Southern Italy whose wheat does not contain mycotoxins, and leading to the bankruptcy of the Mediterranean seed industries. In 2006, for the first time, the European Union fixed the limits of the mycotoxins tolerated in durum wheat and in pasta (Reg. EC 1881/2006). The European limits are amongst the most restrictive in the world, and the results of the analyses conducted regularly by Barilla always give levels very much lower than the legal thresholds. The wheat purchased by Barilla, and therefore Barilla pasta, are absolutely safe and healthy. THE ORIGIN OF BARILLA WHEAT The amount of durum wheat that Barilla needs is sometimes higher than the production available locally in the country where the pasta is made. Barilla, however, pays the utmost attention to the selection and procurement of wheat wherever it is cultivated in the world, in order to ensure the consistent quality of its production. Barilla has developed a sophisticated system to estimate the risk of contamination across Italy, and provides farmers with advice for preventive intervention through its Cultivation Specifications as well as technical support for decisions: granoduro.net. The system provides a control plan targeted to the types of risk that develop on the basis of the climatic conditions of each specific vintage. Each batch of raw material can only be delivered to Barilla s mills after approval by Quality Control. Italian dealers and international monopolists buy at the lowest possible price from farmers who need the money to pay off their debts, to then speculate when all the wheat is in their warehouses. The contracts contain conditions to ensure the remuneration of costs and a reasonable profit for farmers, reducing the risks related to market volatility. To export pasta to the USA (Canada) the wheat has to have a rate of mycotoxins about half of what the EU accepts for imports of durum wheat from the countries themselves, so the international prices of durum wheat plummet. In reality, in the United States and Canada, no limit has been set for durum wheat, and the limits defined for pasta are more tolerant compared to the EU. This situation, however, has no impact on the definition of the price: in any case Barilla adheres to the most restrictive standards of European legislation. * To read the complete position paper visit: % OF DURUM WHEAT GROWN LOCALLY in the country where the pasta is manufactured in 2013 ITALY GREECE TURKEY MEXICO NORTH AMERICA 80% 100% 85% 100% 100% 14 15

10 Quality and Food Safety Barilla is always committed in guaranteeing people the highest level of food quality and safety throughout the production chain. The Group has adopted stringent international standards, thanks to which it pursues continuous improvement in quality from field to consumption. YOU For the safety of consumers, every year, Barilla carries out over 2 million analyses on raw materials, packaging materials, semiprocessed and finished products. THE PLANET This commitment is based on two main factors: the knowhow of Barilla People and respect for the rules of management of production processes. In fact, since 1996, the group has been using a Manual of Knowhow, Good Manufacturing Practices, that contains more than 1,200 rules relating to health and safety requirements at production facilities and plants, but also the personal conduct of operators which is essential to obtain quality products. QUALITY MANAGEMENT SYSTEM The Group carries out continuous quality checks throughout the supply chain: from the purchase of raw materials, to production processes, and the monitoring of products at points of sale, developing an efficient traceability and quality management system. For possible risks of contamination, Barilla has implemented specific programs of prevention and monitoring, ensuring precise responses, also in the face of possible critical issues. RESPECT FOR INTERNATIONAL STANDARDS More than 98.5% of the Group s total volumes is manufactured at production sites that are audited and certified by an independent third party, in accordance with internationally recognized public standards. Barilla also willingly takes part in the Global Food Safety Initiative (GFSI), which collects the best good industrial practices, with the aim of safely managing all the food chain processes. For this Barilla requires all of its raw material suppliers to be GFSI-certified. QUALITY CONTROL AND FOOD SAFETY Barilla carries out numerous quality checks: every year over 2 million analyses are developed to monitor the quality and food safety of raw materials, packaging materials, semi-processed and finished products. In particular, in 2013, 57,000 lots of raw materials were analyzed, with a conformity index equal to around 98% as well as 130,000 lots of finished products with a compliance of all parameters equal to 96%. Barilla oversees its purchasing chains, carrying out, at the same time, analyses of food quality and safety, and analyses to assess the environmental impact of the supply chains involved. COMMUNITIES The Food Quality and Safety activities are fundamental to ensuring the wellbeing of the communities and prevent the possible critical issues. Each year the Barilla Group invests around 30 million Euro in Quality and Safety themes. There are numerous collaborations with certification agencies and external institutions to ensure strict processes and define company positions in an informed way

11 Barilla in Brazil YOU The year 2013 was very important for the expansion of Barilla in emerging markets. In collaboration with local producers, the Group launched a new line of common wheat egg pasta, and pre-packed sauces. Pasta is at the base of the Mediterranean Diet Pyramid. Barilla has adapted its offerings to the Brazilian market: by proposing, alongside its traditional durum wheat pasta, also common wheat egg pasta. And thereby promoting Italian first courses, also in a different market from the Group s origin. To better meet the needs of Brazilian consumers, Barilla managed to penetrate the pasta and sauces category more deeply in the local market. Barilla Pasta in Brazil is made with local ingredients, promoting the local economy and the sustainability of the supply chain. This is proposed as a symbol of the Group s knowhow and high quality, and it also features a competitive price that helps to win consumer preference. On December 2, 2013, Barilla do Brasil received its first award: the Best Marketing Award. The award is considered a valuable point of reference for companies who want to verify and make people aware about the quality of their marketing strategies. Barilla was picked out by a group of 1,500 marketing executives from all over Brazil as confirmation of the quality of the Brazilian team s operations, and the collaboration with suppliers and retailers at a local level. THE PLANET Collaboration with local suppliers allows the supply of raw materials that do not require long journeys to be used, thus reducing the impact on the planet. In addition to the sale of durum wheat pasta, in fact, Barilla has developed a new line of common wheat egg pasta and pre-packed sauces, carefully prepared to satisfy daily food habits and local tastes. The new business chalked up +84% of volumes in a single year, demonstrating a good ability for local adaptation and response to the needs of Brazilian consumers. With the advertising campaign entitled It s always Sunday with Barilla, developed specially for Brazilian market, Barilla succeeded in just one year to increase awareness of its brand among consumers, and the Group s reputation in Brazil. COMMUNITIES Collaboration with producers and local suppliers, as well as listening to the needs of the Brazilian market, represent an example of local adaptation and the ability to be relevant players in the regional economy

12 2 Balanced Nutrition OFFER A RANGE OF PRODUCTS THAT CONTRIBUTE TO A NUTRITIONALLY CORRECT FOOD MODEL, DESIGNED TO CREATE WELLBEING FOR THOSE WHO CHOOSE THEM, AND THEIR FAMILIES. THE BARILLA RANGE CAN EASILY BECOME PART OF A BALANCED DIET IN TUNE WITH THE MEDITERRANEAN MODEL.

13 Better Nutrition FAT REDUCTION * For years, Barilla has adopted the Mediterranean Model as a reference point for the formulation of its products and the spreading of a healthy lifestyle. Minicakes -15% total fat -26% saturated fat Biscuits -11% total fat -10% saturated fat To continuously improve its products from a nutritional point of view and to be updated on scientific progresses, Barilla works with several universities and relies on a group of international experts, the Nutrition Advisory Board, which keeps the company up-to-date on the progress of nutritional science and supports it in anticipation of the needs of the people. The Board consists of five professionals who deal with the relationship between health and eating habits, particularly in areas such as Nutrition, Cardiovascular Prevention, Diabetology, Microbiology and Biotechnology, from Europe, Asia and the United States. Through the Better Nutrition project, in particular, Barilla is committed to continuously improving its products and launching new proposals that are in line with the Mediterranean food model and with the nutritional recommendations of major international institutions. This commitment began several years ago, and the first important result was to completely eliminate hydrogenated fats from every product in In 2009 Barilla developed a set of nutritional guidelines, i.e. indicative values for sodium, fat, sugars and fiber content differentiated by type of product. The criteria used to define the limits of the nutrients took into account both the nutritional values of the foods, and the impact of these different foods in the diet. These indications were applied not only to new products developed after 2009, but also to existing products through a reformulation plan. The actions carried out in accordance to the Barilla s Nutritional Guidelines are: Reduction of sodium, realized through different approaches: above all reducing the amount of salt, but also using ingredients that enhance the flavor of products without sodium. Barilla s commitment to reduce salt has been developed in collaboration with the Italian Ministry of Health, by taking part since 2010 to the Guadagnare Salute Gaining Health project. Reduction in the level of total and saturated fats, and use of different types of fats. In particular, in the course of 2013, extra virgin olive oil was introduced into various Mulino Bianco soft bread, and rapeseed oil in Harrys soft bread. In addition, products made using wholegrain cereals were developed for the enlargement of some brands and categories offering. THE MEDITERRANEAN DIET The Food Pyramid is a graphic illustration of the Mediterranean way of life, founded on physical activity and the convivial consumption of meals. In particular the pyramid shows foods as they should be consumed by people. At the base are foods to be consumed daily, at the apex those to be consumed in moderation. No foods are banned, in fact the diet is varied and balanced and includes a correct combination of many products. UNESCO Intangible Heritage of Humanity in 2010 Snack -20% saturated fat Soft Breads -15% Dry Breads -20% 2,500 Tons of total fat eliminated since 2011 SALT REDUCTION * Sauces -23% * Average reductions of reformulated products Filled Pasta -13% total fat -17% saturated fat Crisp Breads -19% Filled Pasta -23% 1,700 Tons of saturated fat eliminated since 2011

14 Gluten Free New Products The priority of Barilla is bringing the joy of eating and wellbeing to people, even those who are intolerant to the fundamental protein component of cereals: gluten. YOU The development of Barilla Gluten Free represented a further example of the group s commitment to people s wellbeing and the spread of pasta as a basis for the daily diet. For this reason, in the course of 2013, Barilla launched a new Gluten Free Pasta line, available in four shapes: Spaghetti, Penne, Fusilli and Tortiglioni. Barilla Gluten Free is available in Italy, the United States and Canada and will be launched in various countries in the world during INGREDIENTS Barilla Gluten Free is produced with a recipe created by Barilla that uses an exclusive blend of white maize, yellow maize and rice flours, three cereals that are naturally gluten-free, carefully selected and non GMO. This recipe ensures a product with outstanding taste and excellent performance in cooking. In fact, this new Barilla pasta has an amber yellow color very similar to normal durum wheat semolina pasta; the use of white maize flour reduces the typical sweet maize after-taste, and Barilla has also come up with a first-rate balance in the proportion of rice flour, in order to limit the release of starch typical of rice pasta to a minimum. THE DEVELOPMENT PATH The development of Barilla Gluten Free required several years of research to identify the best manufacturing technology and to come up with a recipe that could meet Barilla s taste and al dente standards. Of great importance was the stage of selecting the raw materials and the choice of the most reliable and expert partner for the manufacturing of this product. This is due to the fact that Barilla does not yet have its own production line. In the USA, Barilla Gluten Free has received the approval of the Gluten-Free Certification Organization and in Italy of the Italian Celiac Disease Association and is authorized to bear the Spiga Barrata (i.e. Crossed Ear-Of-Wheat) logo. WHAT IS CELIAC DISEASE? Celiac disease is an autoimmune reaction caused by the consumption of gluten, which causes destruction of the villi in the small intestine. Gluten is a protein that originates from the union, in the presence of water, of two protein sub-units, gliadin and glutenin, naturally present in some cereals, such as barley, wheat, spelt, rye, kamut and triticale. Thanks to its structure, gluten plays a fundamental role in determining the unique quality of wheat, in particular because of three characteristics: it has the ability to bind water, i.e. to hydrate, giving dough cohesion; it gives the dough properties of viscosity and elasticity; it constitutes a protein network that traps the starch granules and contributes to the low Glycemic Index of pasta. For a person who is celiac, consuming gluten can cause a serious state of malaise due to the production of antibodies that destroy the intestinal villi. Celiac disease can hit both adults and children, and is diagnosed through a blood test to monitor the presence of specific antibodies, accompanied by an intestinal biopsy for a definitive evaluation. The most common symptoms for celiac disease are: diarrhoea and poor absorption of nutrients, weight loss, muscle cramps, muscle weakness, bone pain, and nutrient deficiencies. There are no specific pharmacological or surgical treatment: the only solution is the scrupulous observation of a gluten-free diet. INTERESTING FACT Does a gluten-free diet have a slimming effect? No. Compare for yourself the nutritional values between a plate of semolina pasta and a gluten free one! Average nutritional values/100g Barilla Gluten Free Barilla Semolina Pasta ENERGY 363 kcal 356 kcal CARBOHYDRATES of which sugars 79.7 g 1.2 g 71.7 g 3.5 g PROTEINS 6.5 g 12.5 g FATS of which saturated fats 1.8 g 0.3 g 1.5 g 0.3 g FIBER 1.1 g 3.0 g SALT g g Barilla Gluten Free comes in a sustainable pack. In fact, it is made of cardboard produced from virgin fiber and is 100% recyclable. COMMUNITIES THE PLANET To develop Gluten Free, Barilla interacted and worked with many individuals at a global level, establishing a continuous dialog with its stakeholders, in particular: the Italian Ministry of Health, the Italian Celiac Disease Association and the Gluten Free Certification Organization

15 Ciclo di vita sostenibile 3 Garantire dal momento della coltivazione delle materie prime fino alla fase di consumo un ciclo di vita dei prodotti che sia rispettoso, da un punto di vista economico, sociale e ambientale, di tutti 3gli Sustainable attori della filiera e del pianeta. Life Cycle GUARANTEE FROM THE BEGINNING OF THE CULTIVATION OF THE RAW MATERIALS UP TO THE POINT OF CONSUMPTION A PRODUCT LIFE CYCLE THAT IS RESPECTFUL, FROM AN ECONOMIC, SOCIAL AND ENVIRONMENTAL STANDPOINT.

16 Product Life Cycle Barilla devotes much attention to the entire product life cycle: from the procurement of raw materials to the promotion of healthy lifestyles through packaging, advertising, publications and projects. RAW MATERIALS Life Cycle Assessment Barilla Durum Wheat Mezze Penne ECOLOGICAL FOOTPRINT 10.9 GLOBAL m²/kg 9.2 CARBON FOOTPRINT 1,332 gco₂eq/kg 446 WATER FOOTPRINT 1,592 liters/kg 1,586 YOU The LCA method has enabled Barilla to discover that the foods raccommended for people s wellbeing are also those that have a lower environmental impact. One more reason to eat in a nutritionally correct way! MILLING <1 THE PLANET The journey from the raw materials to the dish of pasta, sauce or bakery product, is not simple and involves many actors. Along the way, each food generates a footprint on the planet, i.e., an impact on the environmental resources, in particular: air, water, and land. This impact can be monitored and reduced by paying attention to the way the various moments are managed, from harvest to production, from distribution to consumption patterns. To this end, Barilla has adopted a system based on the Life Cycle Assessment (LCA) methodology, which, in 2013, involved about 80% of the Group s global production. In order to communicate reliable and verified information, Barilla has adopted the Environmental Product Declaration (EPD): a public document, developed in accordance to the EPD International System, that summarizes the environmental performance of a product, calculated throughout its life cycle. The EPD system of analysis and communication guarantees both the accuracy of information, because it is verified by an external body, and the objectivity because it fully complies with ISO standard. ENVIRONMENTAL INDICATORS The main indicators calculated through the Life Cycle Assessment and communicated in the EPD are: ECOLOGICAL FOOTPRINT which calculates the area of territory occupied to regenerate the resources used and to absorb the generated emissions. It is measured in global m²/kg. CARBON FOOTPRINT that estimates the total impact of an activity or product on climate change. It is measured in gco₂/kg. WATER FOOTPRINT that quantifies the water resources consumed. It is measured in liters/kg. PACKAGING PASTA PRODUCTION DISTRIBUTION FROM FIELD to distribution COOKING PHASE GLOBAL m²/kg ,332 gco₂eq/kg , <1 1,592 liters/kg 10 Assessment of the life cycle makes it possible to identify the stages of the supply chain with the greatest margins of improvement, and allows responsible global management of the environmental impact of individual activities: for example Barilla detected significant impact in the cultivation phase, and consequently developed specific projects to remedy this. COMMUNITIES Life Cycle allows to quantify, in an objective way, the environmental impact of every single stage in the life of a product. The guarantee of external supervision by an independent body allows communications that are correct, truthful, and reproducible

17 Sustainable Farming For Barilla it is about cultivating by promoting proper agronomic practices. It s a global project that will involve all the Group s strategic supply chains worldwide within THE BARILLA DECALOGUE FOR SUSTAINABLE CULTIVATION OF DURUM WHEAT Would you like to know what advice Barilla gives its farmers to provide people with high quality wheat? YOU The Decalogue for Sustainable Cultivation involves the use of best quality, certified seeds for sowing in the areas and the right agricultural practices. This is to ensure a High Quality product for consumers. THE PLANET A MULTI-DISCIPLINARY STUDY Since 2009, Barilla has been involved in an applied research project along with HORTA, a spin off of the Catholic University of Piacenza. The objective is to identify sustainable agricultural systems, ensuring a high level of quality and safety. Four main areas have been analyzed: the Lombard-Veneto plains, Emilia Romagna, Central Italy (Tuscany, the Marches and Umbria) and Southern Italy (Puglia, Basilicata and Sicily). For each area various types of rotation and agronomic practice have been compared by identifying those that make the cultivation process more sustainable. THE YEAR Between 2011 and 2012 the project was extended to 13 Italian farms. The result of this work was collected in the Barilla Decalogue for the Sustainable Cultivation of Durum Wheat, which suggests how to make growing more sustainable. Particular consideration was given to traditional rotation techniques, often abandoned for intensive practices that involve an excessive use of resources and a decrease in the soil s fertility. A DECISION SUPPORT TOOL HORTA has collaborated with Barilla in the development of Granoduro.net. This is a forecasting instrument connected to a weather network that extends to cover the main production areas and supports farmers in optimizing agricultural practices. THE YEAR : GLOBAL DEVELOPMENT Between 2012 and 2013, in Italy the project involved more than 100 farmers for a total of 10,000 tons of durum wheat. In the course of 2013, the activity was also launched in other countries where the Group is present: In North America local experts were involved to select the best North American agricultural practices. In France, the project was developed with regard to the cultivation of wheat, as it was in Italy. In Turkey a collaboration began with the University of Harran and local farmers associations regarding durum wheat. In Greece, the project is being carried out in collaboration with the University of Thessaly, and in 2013 a manual of 12 rules was compiled, inspired by the Italian Decalogue. In Sweden and in Germany an analysis of rye cultivation systems was begun Alternate crops: i.e. include durum wheat in a favorable crop rotation Work the land respecting the territorial context, the climate,the type of soil and crop rotations Use the best variety to sow in relation to the distributional area Use only quality certified seeds Sow at the appropriate time Use an appropriate amount of seeds Cull weeds in a timely manner Meter fertilizers according to plant needs Protect the plant from diseases Extend sustainability to farms and not just to single crops. The Sustainable Agriculture Project allows a reduction in greenhouse gas emissions up to 30% with respect to current methods of cultivation. COMMUNITIES The Sustainable Agriculture Project is carried out through multidisciplinary collaborations with several leading players in the territories. In addition, the project promotes the economic wellbeing of local communities, allowing larger profits for farmers with respect to the use of less sustainable agricultural practices

18 RESULTS OF THE PROJECT Cultivating in a sustainable way, promoting the rotation of crops and less use of fertilizers, has a very positive impact on the planet, because of the inevitable reduction in CO₂, but also on production costs, with direct effects visible at the farms. Compared to current agricultural practices, it s possible to obtain: up to -30% reduction in CO₂eq emissions -30% reduction in production costs +20% increase in production yield A PRIZE FOR THE SUSTAINABLE AGRICULTURE In 2013, Barilla s Sustainable Agriculture project was given a prize at the first European CSR award promoted by Sodalitas Foundation in Italy, CSR Europe and the European Commission. Barilla was the only large Italian company to receive the award COMMITMENT In the course of 2014, Barilla s commitment will continue with the extension of the project to other raw materials and areas as well as producing a Barilla Sustainable Agriculture Code. Barilla will also be continuing down its path of international accreditation on the theme: Barilla is involved in the activities of the Sustainable Agriculture Initiative, a global initiative of the food industry to promote sustainable agriculture. Barilla supports the ten principles of the UN Global Compact and monitors the activities of the working group in the drafting of Sustainable Agriculture Principles. INTEGRATED SUPPLY CHAINS The Sustainable Farming project, as well as leading to the Decalogue for the Sustainable Cultivation of Durum Wheat, has shown that crop rotation, i.e. the rotation of several species of plants on the same plots of land, plays a vital role in improving sustainability in the growing phase of raw materials. Correct rotation cycles result in more efficient production. In several cases, however, the difficulty of marketing different types of production do not encourage farms to rotate crops. As a matter of fact, current supply chain agreements in the sector are exclusively vertical and relate to commercial negotiations on one raw material only. Precisely for this reason, for the first time in Italy, Barilla has embarked on a path of collaboration of a horizontal type, with other players in the Italian agri-food system, giving birth to the project called Integrated Supply Chains so as to allow agricultural operators to develop sustainable crop rotation without production waste, ensuring commercial outlets for all crops. In particular: DURUM WHEAT AND SUGAR BEET This is a partnership agreement between Barilla, Co. Pro.B the major cooperative of sugar beet growers in Italy and Italia Zuccheri the number one Italian producer of sugar and the main supplier of Barilla, in order to combine knowledge and needs related to the cultivation of durum wheat and sugar beet. A selection was made of some farms which, in the three years , will make experimental use of durum wheat sugar beet rotation in compliance with growing contracts and respect for shared standards. VEGETABLE OILS: RAPESEED AND SUNFLOWER Cereal Docks is the main Italian group active in the processing of oilseeds and cereals into flour, producing oils and lecithin for human nutrition, the feed industry and industrial use. Barilla has signed an agreement with Cereal Docks for the mutual recognition of standards and support services for farmers. DURUM WHEAT AND TOMATOES In collaboration with the Consorzio Casalasco del Pomodoro an important Italian producer of tomatoes and industrial sauces, Barilla is carrying out an analysis on tools developed by the Sustainable Agriculture Initiative and on the possibility of interaction between the tomato and durum wheat supply chains

19 Objective: Zero Deforestation Barilla uses palm oil for the texture, fragrance and neutral taste it guarantees final products, and because it represents an optimal solution to replace hydrogenated fats. On October 22, 2013 Greenpeace International published a report called License to Kill, to denounce the continual destruction of the rainforests and peat bogs in Indonesia, caused by the rapid expansion of palm oil plantations for the production of vegetable oil for food and industrial uses. The massive deforestation causes considerable damage to biodiversity, ravaging the habitats of many mammals, birds and plants. To increase the amount of land available to produce palm oil, some areas have been drained and reclaimed, and then burned, causing the emission of several tons of greenhouse gases into the atmosphere and the flight of many animal species, some of which such as the Sumatran tiger risk extinction. Greenpeace has stated that every year deforestation and fires release about 1.8 billion tons of CO₂ into the atmosphere. This has resulted in Indonesia, one of the most relevant producer of palm oil, becoming the third country in the world for greenhouse gas emissions. License to Kill is actually part of an international awareness campaign that Greenpeace has long employed against certain industrial groups that use palm oil for their production. The aim is to promote a commitment to Zero Deforestation, in such a way that the large multinationals no longer use palm oil whose production involves the destruction of forests, and that the oil producers responsible for the recent forest fires are expelled from the international working groups on the theme, such as the Roundtable on Sustainable Palm Oil (RSPO). The problem has assumed global proportions. In addition to Greenpeace, also WWF International is tackling the theme and is collaborating with local Indonesian and Malaysian communities, governments and industry to address the situation. In particular, in 2009, the WWF introduced a Palm Oil Buyers Scorecard, a ranking of the major food companies that use palm oil, which monitors commitment to the use of certified sustainable oil and the concrete results of this commitment. THE PALM OIL SUPPLY CHAIN To cope with the negative consequences of palm oil cultivation, in 2004, a group of industries and NGOs set up the Roundtable on Sustainable Palm Oil (RSPO). The RSPO s task is to establish a series of principles and criteria to certify the production of sustainable palm oil. The plantations of manufacturing companies that are members of the RSPO are certified by external auditors via periodic inspections. Palm oil that has been certified as sustainable is purchased from refining and distribution companies or directly from the manufacturers. To check that the phases of refining, processing, transformation and transport of the palm oil are sustainable, several supply chain certification systems have been created by the RSPO. The three main systems are: Segregation: which controls that the palm oil is sustainable from cultivation through to final use, isolating it from possible sources of uncertified palm oil. Mass balance: this allows the mixing of certified and uncertified oils at certain controlled points of the supply chain, while ensuring that the volume of certified palm oil used by the final user matches the equivalent of crude palm oil from the initial oil mill and that this oil really has been used throughout the supply chain

20 Book & Claim: the supply chain is not monitored. End-users can buy Green Palm certificates to compensate for the use of conventional, non-sustainable palm oil. Each Green Palm certificate corresponds to a quantity of certified sustainable oil equal to that of the conventional oil used. This system allows industries to promote the production of sustainable oil, even when they are not in a condition to physically purchase it. However, considering this certification insufficient to protect forests, in June 2013, Greenpeace asked companies to apply policies that go beyond the basic RSPO criteria to promote so-called Zero Deforestation. BARILLA S REASONS TO USE PALM OIL Nutritional and Technological Aspects Palm oil is a fat that solidifies at room temperature, giving bakery products optimal organoleptic properties, and has allowed the elimination of hydrogenated fats from Barilla products. In fact, Barilla no longer uses hydrogenated fats in any product, and is working constantly to lower the total amount of fats in all its products. Palm oil can easily be combined with oils that have a high unsaturated fat content (e.g. sunflower oil), which makes it possible to reduce the content of saturated fatty acids in finished products without stability or flavor problems, and without the need for additives to adequately preserve the product. As for the nutritional implications, different sources, including research carried out in 2002 by the United Nations University (NGO ASH et al, 2002) and a study in 2013 carried out by the Mario Negri Institute which reviewed the latest scientific publications from around the world (Palm Oil and Palmitic Acid: a review on cardiovascular effects and carcinogenicity, 2013) show that no correlation exists between the consumption of palm oil and cholesterol level. In addition, for the moment, no studies have proved a correlation between palm oil and possible carcinogenic effects. Several studies have shown that the actual contribution of saturated fatty acids from palm oil in the daily diet is very limited. In fact, INRAN research in 2009 on average food consumption in Italy showed that only 10% of the intake of saturated fatty acids daily derives from confectionery products (approximately 2.8g/person/day), of which bakery products are only one part. Environmental Sustainability Aspects The cultivation of this crop has boomed since the 1990s, and the surface area dedicated to growing it has increased exponentially, leading the international community to reflect on ways to safeguard the environment and promote sustainable consumption and production methods. From an environmental point of view, when produced in a sustainable way, palm oil continues to be one of the most workable solutions to meet the increasing global demand for vegetable oil. In this context, the guidelines dictated by the RSPO provide a globally accepted reference for the production of sustainable palm oil. In addition, when compared to other vegetable oils, palm oil has been found to have a reduced environmental impact, being characterized by small cultivated areas in relation to the high production yields, low CO₂ emissions, and limited water requirements. If we were to replace palm oil with other vegetable fats, the crop area needed would be, in the case of soybean for example, approximately 6 times greater (Schmidt 2010; Yields FAO 2009). BARILLA S COMMITMENT Barilla buys around 35,000 tons of palm oil every year on a global production of 60,000,000 tons and it has decided long ago to only use suppliers who can guarantee compliance with the production methods defined in the RSPO guidelines. Barilla s objective is to have 100% palm oil procured from RSPO-certified sustainable productions by the year This, however, is not sufficient to stop the deforestation, and so Barilla has agreed with its suppliers a goal of Zero Deforestation by 2015, and has undertaken, again along with its suppliers, not to buy palm oil from producers who are responsible for forest fires and deforestation, while guaranteeing complete traceability. YOU Palm Oil has allowed to completely eliminate hydrogenated fats, to be easily combined with oils that have a high unsaturated fat content and to reach optimal organoleptic properties in bakery products. Membership of the RSPO and the sharing of its principles means having respect for the environment at all stages of the palm oil supply chain, as well as the conservation of natural resources and biodiversity in the production areas. COMMUNITIES THE PLANET RSPO certification also entails respect for any individuals and communities impacted by the cultivation of palm oil, plus respect for the land rights of indigenous communities, and the rights of collectors and their families

21 Animal Welfare For Barilla, eggs are the main ingredient of animal origin. Each year, the Group uses for its products 23,000 tons of eggs produced by more than 2 million laying hens. Each year sees the breeding of about 70 billion animals intended for human consumption. The intensive farming has led to meat, milk and eggs in large quantities at a low price, resulting, however, in negative consequences for the animals themselves, as well as for the environment and consumers. These include: ENVIRONMENTAL IMPACT Intensive rearing pours into the atmosphere considerable amount of greenhouse gases: in 2013 the FAO, the UN organization for Food and Agriculture declared that livestock activities produce 14.5% of the global emissions of anthropic greenhouse gas. In addition, intensive practices threaten biodiversity, both because of water and land pollution due to animal excrement, and because of the destruction of natural habitats for the benefit of intensive mono-cultures in which to cultivate food intended for farm animals. IMPACT ON PEOPLE S HEALTH Due to the confined spaces in which thousands of animals live amassed, intensive farms can promote the transmission of diseases and mutation of pathogens into more dangerous strains if not handled correctly. Added to this is the widespread use of antibiotics for prophylactic purposes, which may contribute to the development of antibiotic-resistance in humans. IMPACT ON COMMUNITIES Intensive livestock farming nurtures one of the global paradoxes that relates to the distribution of food in the world, one-third of global food production is intended for the nutrition of cattle, when more than 800 million people in the world are undernourished (Barilla Center for Food and Nutrition, Nutrition in 2030: trends and prospects). In this context, there are organizations that are involved in promoting farming practices that are more respectful of the wellbeing of animals, taking into account the quality and food safety for consumers and environmental impact. Among these, is Compassion in World Farming (CIWF), a British organization founded in 1967, and now widely present in many European countries, the United States, South Africa, and China

22 BARILLA EGGS YOU The eggs reach the Barilla plants already shelled and pasteurised and are used to produce egg pasta and bakery products. Generally, intensive chicken farming means sheds with poor artificial lighting, and a series of cages in which the birds are locked up. It is possible, however, to raise the birds in another way, that is more respectful of their welfare. Consequently, Barilla has chosen another type of farming: cage-free, instead of intensive farming. Cage-free breeding means that the hens grow freely inside single or multiple-storey buildings. The birds have many communal spaces and can move freely throughout the whole building. They also have nests with a scratchable surface, perches, and bedding on the ground. This allows the birds greater freedom of movement and to express natural behaviour such as pecking, scratching, and egg-laying inside a closed nest. Barilla s undertaking for eggs and the promotion of supply chains that consider animal rights, was also created to guarantee consumers quality and safe ingredients. BEYOND THE LEGAL OBLIGATIONS Since January 1, 2012, throughout the European Union, Directive 1999/74/EC has been in force, which lays down minimum standards for the protection of laying hens, and which prohibits the use of conventional battery cages as a system for breeding poultry. Instead, so-called enriched cages, which are a little larger than the conventional ones, remain, as well as alternative systems (cage-free, free-range, organic), of course. Before this legislation came into force, Barilla had already started a project in collaboration with its suppliers and Compassion in World Farming (CIWF), to choose whether to use eggs from hens kept in enriched cages, or to go beyond the legal obligations and buy cage-free eggs. Even though this led to an increase in the purchase price of the raw material, with the wellbeing of the hens in mind, Barilla opted for the cage-free solution. As a result, since April 1, 2012 for all Barilla products under the Le Emiliane, Mulino Bianco and Pavesi brand names, only cage-free eggs have been used. For this reason, in 2011 and 2012, the three brands received the Good Egg Award promoted by CIWF. THE PLANET A responsible policy vis-à-vis animal rights also results in a positive impact on the biodiversity of the ecosystems. Sustainable diets, respectful of territories, can reduce the natural resources use and give value to the diversities of local realities. BARILLA S COMMITMENT Although in a less significant way than with eggs, Barilla is also involved in the meat supply chains for the production of ready-meals and sauces, as well as in the supply chains of dairy products and animal oils and fats for bakery products, their fillings, and meal solutions. Aware of its responsibility throughout all the supply chains, and in line with its way of doing business, by 2014 Barilla intends to define the Group s global policy for Animal Welfare, in addition to its current commitment to the management of the poultry sector, and to gradually extend it to cover the other supply chains. Barilla s intention is to conclude the process of the inclusion of animal welfare in all its animal supply chains by COMMUNITIES Barilla has developed its Animal Welfare project in collaboration with its suppliers and the international organization Compassion in World Farming. For this reason, a specific working group has been set up that periodically meets members of the international organization Compassion in World Farming and that reports to the Sustainability Committee of the Group as a whole that manages the Good for You, Good for the Planet

23 Barilla s Production To ensure a sustainable product lifestyle, Barilla carefully monitors and manages every phase of the manufacturing process in its factories and bakeries so as to reduce both the use of resources and emissions. GREENHOUSE GAS EMISSIONS WATER RESOURCES MANAGEMENT In 2013, a decoupling of greenhouse gas emissions from production was confirmed: in fact even with a production increase of 4% greenhouse gas emissions, expressed in CO₂ equivalent, were reduced by 15% as an absolute value compared to In addition, per unit of finished product, there was a reduction of 19% compared to 2010, i.e tco2 eq/t of product. These results have been obtained thanks to cogeneration plants, energy saving projects, and energy produced from renewable sources. In 2013, Barilla s plants consumed approximately 2.3 million cubic meters of water, saving 343,000 cubic meters of water with respect to 2010, with a reduction of 13%. With this latter amount of water, more than 30,000 people could take a shower for a year. In addition to the savings, some projects to reuse water resources have been developed, in particular at the plants in Cremona (Italy), Foggia (Italy), Ames (USA) and Avon (USA). CERTIFIED MANAGEMENT SYSTEMS Millions of tons of product CO₂ eq EMITTED BY PLANTS COMPARED TO THE VOLUMES OF FINISHED PRODUCT In fact, cogeneration plants have been installed at all Italian pasta plants: The Parma and Foggia plants are powered by a cogeneration plant that produce, at the same time, electricity and thermal energy. The Caserta pasta plant uses a trigeneration plant that produces electricity, heat, and refrigerated water. RENEWABLE ENERGY The production plants in Celle in Germany and Filipstad in Sweden, use electricity purchased from producers who certify that it comes from a hydroelectric source. In addition, Barilla has covered all its electricity demands for the production of Mulino Bianco, Gran Cereale and Pan di Stelle with certificates GO-RECS, that attest the production from renewable sources. More than 83% of Barilla s production takes place in plants that have an Integrated Safety and Environmental Management System (ISEM), certified by an independent body in accordance with the international standards OHSAS for safety and ISO for environment. In 2013, moreover, an Energy Management System was implemented and certified at the Castiglione delle Stiviere (Italy) plant, developed in accordance with the international ISO standard. This plant is added to Celle (Germany) and Filipstad (Sweden), which are also equipped with an Energy Management System. WASTE FROM PRODUCTION Furthermore, Barilla s plants also pay attention to waste management, with the aim of decreasing the total amount produced and increasing the percentage for recovery or recycling. In 2013, there was an average 16 kg of waste per ton of product; of which approximately 92% went for recovery/recycling operations. Millions of tons of CO₂ eq TOTAL WATER CONSUMPTION IN PLANTS in milions of m

24 HEALTH AND SAFETY OF BARILLA PEOPLE Another fundamental aspect is the attention given to health and safety of the people who work on a daily basis for Barilla. In 2013 there were 154 accidents, 41% less than in The plants in Ames (USA), Thiva (Greece) and Rubbiano (Italy) did not report any injuries in the course of the year. This result was achieved thanks to the Safety Management Systems (OHSAS 18001), technical investments in improvement projects, and to the more than 52,000 hours of training on issues of health, safety and fire prevention given in Finally, over the course of the year, 112 audits were carried out to verify the correct application of prevention tools developed to improve workplace safety, fire prevention, and to reduce environmental impact. YOU The safety of Barilla People is fundamental, and for this reason, training paths, operational guidelines and specific auditing activities have been developed for a total investment of 11.4 million Euro. In 2013 there were 154 accidents, 41% less than in ACCIDENT FREQUENCY INDEX number of accidents hours worked by employees x 1,000,000 THE PLANET SINCE % All of Barilla s production is managed in a responsible manner from an environmental point of view. Since 2008 Barilla has succeeded in achieving a reduction in greenhouse gases emitted by plants at an absolute value of 27%. ACCIDENT SEVERITY INDEX days of absence due to accidents hours worked by employees x 1,000 COMMUNITIES SINCE % Barilla represents a significant player at an economic, environmental and social level in the communities where it is present. Productive facilities across the globe are engaged in sponsoring local activities, through financial or product donations

25 Barilla s Packaging YOU The Barilla Group has always been very attentive to the quality of its packaging: it is no coincidence that for most of its production it is one of the few pasta manufacturers to use boxes made from cardboard. The nutritional tables, consumption suggestions and tips for a healthy lifestyle are an important contribution by Barilla for people s wellbeing, that is conveyed also by means of the product packs. Packaging materials, whether flexible films or cardboard, are selected in accordance with the best standards and in compliance with stringent environmental criteria. Appropriate nutritional and key environmental information is given on the packs. MORE AND MORE RECYCLABLE PACKAGING Back in 1997 appeared the first Barilla Guidelines for Sustainable Packaging Design, by now in their third edition. In addition, since 2007, it s available the Barilla LCA Packaging Designer that makes it possible to compare different solutions to help choose the one with the least environmental impact. All of this naturally safeguarding the packs ability to protect and preserve the goodness of the products. Thanks to this tool and all its other improvement projects, in 2013, Barilla reached the 98% of its packaging as technically recyclable (compared to 85% in 2008). CARDBOARD IN VIRGIN FIBER FROM SUSTAINABLE FORESTS ONLY Barilla purchases more than 30,000 tons of cardboard. 100% of the virgin fiber for the cardboard used in packaging is certified according to the international standards of the FSC (Forest Stewardship Council), the PEFC (Program for the Endorsement of Forest Certification) and the SFI (Sustainable Forestry Initiative), related to responsibly managed forests. All of these standards include forest management that protects the environment and the rights of people and different cultures, while maintaining economic sustainability. INFORMATION ON INDIVIDUAL PACKS Barilla has given a lot of thought to the information provided on its product packs, trying to ensure communication that is complete, correct, and transparent. In 2008, Barilla developed Barilla Environmental Labels that indicate the particular packaging material used, as well as which refuse container it should go into. Furthermore, next to the complete list of ingredients and potential allergens, the Group offers suggestions for a correct lifestyle, in addition to information on ideal consumption amounts and recommendations for preparation. Over 1,440 products, equal to 93% of the total, have health or nutrition information on the pack. The social media are increasingly places for relating to specific target consumers, both to promote products and to involve people directly. 85% of the product websites provide detailed instructions for better consumption. 53% of the websites presenting Barilla products provide suggestions for a healthy lifestyle. NEW EUROPEAN LEGISLATION ON LABELLING At the end of 2014, the new EU regulation 1169/2011 will come into force. Passed by the European Commission, it aims to harmonize all the national laws on the correct indication of nutritive principles and the corresponding calorie intake for food, as well as information on the presence of ingredients that might cause allergies. In 2013 already one in three Barilla s products perfectly satisfied the specifications of this new European legislation. For many years, Barilla has offered indications to its consumers that go beyond the legal obligations, and that often anticipate the requirements of the European regulator. Barilla managed to increase the percentage of technically recyclable packaging from 85% in 2008 to 98% in COMMUNITIES THE PLANET Separate waste collection is an important commitment to transform waste packs into resources and improve the wellbeing of local communities at a global level. Barilla has included symbols on its packs that suggest how to properly separate packaging

26 4 Correct Lifestyle SUGGEST TO PEOPLE A HEALTHY WAY OF LIFE THROUGH CORRECT INFORMATION, FAVORING FOOD EDUCATION AND AWARENESS OF FOOD S ENVIRONMENTAL IMPACT.

27 Barilla Center for Food and Nutrition The Barilla Center for Food and Nutrition Foundation is committed to analyzing the major issues related to feeding and the resources of the planet. YOU In 2013, in relation to the thematic area Food for Health, the BCFN Foundation published the paper: Food paradoxes and correct lifestyles in a changing society. Today, more than 7.2 billion people inhabit the world and global wealth has increased significantly over the last two centuries. However, while there has been an improvement in the living conditions of various countries, there are still conditions of extreme poverty in some areas of the planet, and there are huge environmental problems generated by the unprecedented economic development. In particular, there are three paradoxes linked to the world of food and nutrition that must be managed to ensure sustainable development for us and future generations: In today s world, for every malnourished person there are two obese or overweight. One third of the entire global food production is intended to feed livestock, while a growing percentage of agricultural land is given over to production of biofuel. Every year, in the world, 1.3 billion tons of perfectly edible food is wasted, while 868 million people go hungry. Since 2009, the Barilla Center for Food and Nutrition Foundation (BCFN analyzes the economic, nutritional, environmental, and social factors in their cause-effect relationship with food and the resources of the planet. It has split its analysis into four areas: Food for Health investigates the role of the diet in ensuring a long healthy life for people and suggests the Mediterranean Diet as a nutritionally balanced food model. Food for Sustainable Growth assesses the impact of the agri-food supply chain, and draws up proposals and recommendations on lifestyles oriented to protect the environment and its resources. Food for All examines the paradox of excess food in western countries and, at the same time, the difficulty of access to food in developing countries, and assesses the possibility of a fairer distribution of food resources. Food for Culture studies the development of the relationship man-food, and focuses on the role of different food cultures. The BCFN Foundation s activities are steered by a multidisciplinary team of external international experts that identifies issues relevant to the study, analyzes them in a scientific way, and proposes concrete recommendations that are then communicated to all public decision-makers and opinion leaders, in order to promote a better life and widespread, sustainable wellbeing for people. THE MILAN PROTOCOL In the course of 2013, the BCFN Foundation developed the Milan Protocol, a document on food and nutrition that represents a commitment to act for sustainable change, and establishes principles for global action with the goal of making the global food system sustainable. The protocol was launched on November 27, 2013, on the occasion of the Fifth International BCFN Forum in Milan, and is addressed to national governments, international organizations, and civil society, so that everybody can become promoters of an effort of improvement. The final version of the Protocol will be presented during the Sixth International BCFN Forum in December In 2013, in the context of Food for Sustainable Growth a paper was published called: Against waste: defeating the paradox of food waste. COMMUNITIES THE PLANET The BCFN Foundation has two thematic areas dedicated respectively to analysis of food distribution at a global level, Food for All, and the cultural characteristics of diets in various communities, Food for Culture

28 The Double Pyramid Model The Double Pyramid summarizes how the foods to be consumed more frequently for people s wellbeing, are also those that have a lower impact on our planet. One of the best known BCFN Foundation studies is the Double Pyramid. The pyramid on the left is the food pyramid which shows at the base the products it is recommended to consume more frequently, and at the apex those that should be consumed in moderation. The Mediterranean Diet suggests a nutritionally correct style of eating given by careful consumption of all types of foods on the pyramid, together with regular daily physical activity and the convivial sharing of meals. SETTE GREEN AWARDS On December 2, 2013 the Double Pyramid model received a prize from the Sette Green Awards in the Culture category. The Green Awards are seven Oscars given to the best projects of the year for the promotion of sustainable development. In particular, the Double Pyramid was appreciated for having been able to spread awareness among consumers of the ecological footprint of the food we consume. From an analysis of the environmental impact of the food, the BCFN Foundation noted that the foods to be consumed more frequently are also those with a lower environmental impact. To determine environmental impact, the life cycle of each food was studied i.e., the main steps of the product s life: from cultivation of the raw materials to consumption. In this way the environmental pyramid was created. Impact on the planet were analyzed in terms of the greenhouse gas emissions generated by each product, consumption of water resources, and the surface area of the territory occupied to regenerate the resources used. In short what is good for us is also what has a lower impact on our environment. A REFERENCE MODEL The Double Pyramid model was adopted as a reference point for the Barilla Group s way of doing business. Barilla has analyzed its products and positioned some of them on the Double Pyramid. As it is possible to see, not all the products can be found at the base of the Double Pyramid. With this representation as a reference point, in addition to continuously improving the nutritional profile of its products, the Group undertakes to provide correct information on food and consumption, so that people can include Barilla s range as part of a complete healthy diet. From an environmental point of view, moreover, the Group is committed to ensuring that its products have less impact on the planet, and to improving the entire life-cycle. Today around 80% of Barilla s products is at the bottom of the food pyramid and 90% is in the lower layers of the environmental pyramid. Cocoa Ringo, Cream Cornetti Galletti, Tarallucci, Gocciole Harrys Bread, Pan Bauletto, Barilla Ready Meals, Rusks Basil Sauce, Whole Grain and Semolina Pasta, Wasa, Barilla Pasta Plus HIGH RECOMMENDED CONSUMPTION LOW FOOD PYRAMID ENVIRONMENTAL PYRAMID LOW ENVIRONMENTAL IMPACT HIGH Cream Cornetti Harrys Bread, Barilla Ready Meals, Basil Sauce, Whole Grain and Semolina Pasta, Pan Bauletto, Rusks, Wasa, Galletti, Tarallucci, Gocciole, Cocoa Ringo N.B. This illustration shows only some of Barilla s products

29 Disseminating a Model Barilla believes that the promotion of the Good for You, Good for the Planet and the Double Pyramid model is important to contribute to the wellbeing of people and the environment in which they live. YOU Projects for the dissemination of the model Good for You, Good for the Planet are designed to spread a dietary model that is in line with the Mediterranean Diet Pyramid, one of the world s healthiest diets. OGGI PASTA CON? In order to promote the culture of pasta and its many preparations, in 2013 the Barilla brand came up with Oggi Pasta con? (Today Pasta With?). This is a commercial initiative created in Italy through which Barilla offered consumers 126 recipes to prepare tasty first courses and inspire people s imagination and wellbeing. In particular three-stage path was suggested: In 2013, Barilla created projects to disseminate Good for You, Good for the Planet both as a Group, and through specific brand activities. Collect your Favorite Recipes Consumers were able to collect numerous recipes on cards to be found in specially arranged spaces inside the galleries of shopping malls, and in displays at points of sale. Enjoy and Learn Spaces for cooking were set up in the galleries of some shopping malls where people have had the chance to learn some simple recipes and taste Barilla products. Win Through a promotion, Barilla made available a recipe card holder with the purchase of three products and the opportunity to take part in a contest to win a year s supply of Barilla pasta with the purchase of five products. The recipe cards, in addition to giving directions for the preparation of the dish, invited the consumer to discover the Double Pyramid and to investigate further on the Group s website why Barilla s recipes are good for people and good for the planet. DISTRIBUTORS OF WELLBEING In , Barilla, in collaboration with the San Raffaele Hospital in Milan, the manufacturer Rhea Vendors and the manager of Gesa vending machines, developed a pilot project for the promotion of wellbeing through mono-brand vending machines positioned near the hospital complex. Users had a chance to buy tasty Barilla products with a balanced nutritional profile, and combine these with drinks or other food for a light snack between meals. The vending machines, equipped with touch-screen technology, made it possible to inform the consumer of the nutritional characteristics of their choice and how this fits in with the Mediterranean model adopted by the Barilla Group. In a second phase of the project, the enlargement of the product offering further increased the appeal to consumers, showing that the world of vending machines is an excellent channel for the dissemination of nutritionally balanced products. As a result of the collaboration, however, the supplier Gesa decided to include some of the Barilla products in 360 vending machines across Italy. The possibility of having a vending machine that distributes exclusively Barilla products, accompanying the food with nutritional tips, resulted in some products achieving double rotation with respect to standard vending machine sales. The projects are carried out in full respect of the protection of the environment: both by raising the awareness of consumers as regards the environmental impact of their food choices, and by offering sustainable products. COMMUNITIES THE PLANET The projects are carried out in synergy with other partners, so that a leverage effect is created for the dissemination of sustainable development model

30 YOU, THE PLANET FOR CATERING In the course of 2013, Barilla, in collaboration with Ericsson and the catering company Alpi San Marco, launched a new project in the field of catering intended for company canteens, with the objective of spreading a range of nutritionally balanced meals that are also sustainable from an environmental point of view. In particular, the initiative was developed to increase awareness among employees of the new Erzelli Science and Technology Park in Genoa of the culture of eating well as a factor in promoting wellbeing as well as environmental protection. Along with the use of its catering products, Barilla disseminated the concept of the Double Pyramid, demonstrating how it is possible to come up with weekly menus that have a positive impact on consumers and on the planet. In particular, the menus were designed in line with the Mediterranean Diet model, while their environmental impact were defined by using of a special recipe designer. Finally, a kit of materials was developed to allow the project partners to set up the new company canteen. The results have been very positive and give a further demonstration that it is possible to promote initiatives for sustainable development, through business activities. INTERESTING FACT: HORECA 24 PRIZE On November 25, 2013, the packs for Barilla Food Service 5kg pasta designed for catering, received the HORECA 24 prize in the Green Solution category for environmentally-friendly products designed to reduce energy and water consumption, waste, and environmental impact. The prize is sponsored by the magazine of the HORECA area of the 24 ORE Group and is now in its second edition, with the purpose of enhancing the creativity, commitment and research that companies invest in the development of innovative products and services. In particular, the new Barilla Food Service 5kg packaging has allowed a saving of 100 tons per annum on average of plastic material with a benefit for the environment that can be measured in 350 tons of greenhouse gases less emitted into the atmosphere, equal to something like 50 times around the Equator by car. This is thanks to the development of some innovative technology which has allowed Barilla to reduce the thickness of its packaging film from 50μm to 35μm. In this way, Barilla is also promoting its way of doing business.

31 The First Restaurant in New York City YOU Taste and Italian tradition are the main ingredients of the new Academia Barilla Restaurant in New York, that pays constant attention to the nutritional properties of the food and the procurement of top quality raw materials. The first Academia Barilla Restaurant opened in New York to promote and disseminate the Italian gastronomic culture in the world. It is a fast casual restaurant, with the aim of bringing the Italian conviviality in the American big city. THE PLANET Service is typical of the fast casual variety, i.e. it is characterized by an open kitchen, in front of which customers can see the dishes being prepared and order them when they arrive at the cash desk. People are then served a tray with the dishes they ordered that can be eaten at a large table shared with other diners, or at smaller tables. Other services include take-away, online orders, or home delivery with a minimum order designed for the many offices in the neighborhood. The restaurant is designed both to promote a convivial food model, the Mediterranean one, and to raise awareness among people of the values of Barilla s way of doing business: quality, nutrition, attention to the environment, and the promotion of Italian territorial specialties with local adaptations worldwide. The menu is varied and includes pasta dishes, pizza, salads, paninis and soups, as well as a range of desserts, breakfasts, and Italian-style aperitifs. In addition, a large part of the menu is perfectly consistent with the model Good for You, Good for the Planet. The restaurant has been designed to be a symbol of Italianness in New York. To this end, important partnerships with famous Italian brands have been established, in particular with Lavazza coffee, San Pellegrino for soft drinks, Peroni for beer, Antinori and Mezzacorona for wines. Moreover, inside the restaurant a small market enables customers to purchase 100% Italian specialties selected by Academia Barilla: bronze-drawn pasta from the Campania region, sauces, different varieties of extra-virgin olive oil and Balsamic Vinegar from Modena. In addition, it is possible to purchase some of the Group s bakery products from the Mulino Bianco and Pavesi ranges. Promoting the Double Pyramid model and the Group s way of doing business is the restaurant s website which features a graphical illustration of the model with reference to the digital platform related to the menu dishes that have a lower impact on the planet and are the very basis of the food pyramid. The restaurant helps consumers become aware of an assessment of the environmental impact of their food choices, both by pointing to the Double Pyramid on its website, and through use of the slogan Good for You, Good for the Planet inside the restaurant. COMMUNITIES Through its new restaurant, Barilla is promoting the taste of Italian tradition and the pleasure of conviviality, adapting it to the fast casual consumption habits of young Americans, in partnership with other Made in Italy brands

32 Educating People through Communication Barilla believes that what is recommended by the Mediterranean Diet contributes to the wellbeing of people and the planet. For this reason, the Group promotes it through websites, products and initiatives. YOU The communication campaign developed to promote pasta as the basis of the daily diet, according to the Mediterranean model is based on scientific findings that demonstrate how important the consumption of carbohydrates is to maintain a proper concentration of glucose in the blood (glycemia), vital for health and the prevention of diseases. THE PLANET WHAT DO YOU KNOW ABOUT PASTA? There is a widespread opinion that pasta makes you fat. This also explains why in recent years several low-carb hyperproteic diets have become popular. Barilla, indeed, believes that what is recommended by the Mediterranean Diet contributes to the wellbeing of people and the planet. For this reason, the Group promotes it through websites, products and initiatives. In particular, in 2013, Barilla America has developed an information trail that is an excellent case of healthy eating education through communication. On the internet site a special section has been dedicated to the Mediterranean Model and an explanation of the Double Pyramid. Through animated infographics, consumers can discover the benefits of a balanced diet with a reduced impact on the environment. They can also participate in a virtual tour of a supermarket, Shop for Sustainability, choosing what they wish to buy and receiving a calorie count and the environmental footprint of their purchases. On Pinterest is an active Barilla profile which features an infographic of all the important aspects linked to the consumption of pasta. The nutritional guidelines for pasta have been shared with the non-profit American association Oldways, committed to promoting proper nutrition. Through the program ONE Oldways Nutrition Exchange, these have been disseminated to Supermarket Dietitians, i.e., nutrition experts who work in the USA to promote programs for proper nutrition and wellbeing at points of sale, in collaboration with large retailers. BARILLA S NUTRITION ON THE WEB In 2013, the entire page dedicated to Nutrition of the corporate website was revised. In addition to describing the projects promoted by the group itself, the site has been constructed as a platform for nutritional guidelines and recommendations that have been disseminated internationally over the last few years. The new section refers to the Group s brand sites where it is possible to find nutritional characteristics, tips on consumption, and recommendations for a healthy lifestyle using Barilla s main products. In recent years Barilla has produced some explanatory brochures that communicate in a simple but scientifically correct manner, some of the issues relevant to our daily diet. It is possible to look these up on The awareness Barilla tries to instill in its consumers always considers the two pyramids of the Double Pyramid model together. Also in Shop for Sustainability, a virtual tour inside a supermarket, the final expenditure is measured for both calorie count, and environmental impact. COMMUNITIES Collaboration with the Oldways organization, and participation in the ONE initiative, has brought Barilla s messages to the people, through the commitment of the Supermarket Dietitians

33 10 Good Reasons to Eat Pasta 1 PASTA DOES NOT MAKE YOU FAT What creates weight gain are excess calories, not regular servings of pasta. Pasta contains complex carbohydrates, and if dressed with ingredients that are rich in fiber and protein but low in fat (fresh herbs, legumes, vegetables and meats), it represents a balanced consumption opportunity. 2 AL DENTE PASTA KEEPS YOU FULLER LONGER Due to the protein structure of the dough, pasta has a fairly low Glycemic Index. The Glycemic Index assesses the quality of carbohydrates with a scale that ranges from 0 to 100 indicating those that are digested, absorbed or metabolized quickly (high GI) from those that are slower (low GI). This means that a food with a low Glycemic Index is metabolized more slowly and prolongs the sense of satiety: pasta has a low GI value between 36 and 51 (i.e. potatoes have a value of 87). Sources: Oldways and International Pasta Organization, The Healthy Pasta Meals Scientific Consensus Statement, NFI. Carbohydrates and glycemic index. it/monografi e/carboidrati-ed-indice-glicemico.aspx (ult. acc ) (ult. acc ). 3 PASTA IS VERSATILE Combine correct servings of pasta (80-85 gr) with vegetables, legumes, fishes or other, it is possible to obtain a tasty and balanced meal. 4 PASTA IS A CORNERSTONE OF ONE OF THE WORLD S HEALTHIEST DIETS Pasta, as a source of carbohydrate, is the basis of the Mediterranean Diet model, considered one of the most balanced in the world. Source: Oldways and International Pasta Organization, The Healthy Pasta Meals Scientific Consensus Statement, PASTA IS A SUSTAINABLE FOOD: YOU, THE PLANET As demonstrated by the Double Pyramid model developed by the Barilla Center for Food and Nutrition, the environmental impact of the foods at the base of the Mediterranean Diet Pyramid is lower than that of the foods at the apex of the Food Pyramid. 6 THERE S A PASTA SUITED TO EVERYONE S TASTE OR DIET NEEDS In addition to classic semolina pasta, it is possible to find other types: egg, common wheat, whole grain, protein-enriched, gluten free. Pasta can easily be adapted to suit any dietary need. 7 WATCHING YOUR CALORIES? PASTA HAS A PLACE IN YOUR MEAL PLAN Many studies have shown that a good balance between carbohydrates, proteins and fats is essential to maintain a healthy body weight and reduce the risk of disease. A study in 2009 by the Harvard School of Public Health and Pennington Biomedical Research Center found that diets consisting of 36-65% of carbohydrates are as effective for weight loss as other diets lower in carbohydrates. Source: New England Journal of Medicine, 26 February 2009; 360(9): PASTA IS A SIMPLE AND SATISFYING WAY TO GET A GRAIN-BASED FOOD INTO YOUR DIET By eating a pasta dish, depending on the size, it is possible to have two to four servings of cereal, as suggested by the US Department of Agriculture, and in line with the Mediterranean Model. Moreover, it is preferable to consume whole grains. 9 PASTA IS LOW IN SODIUM AND FAT A correct serving of pasta without sauce (80-85 g) yields about 280kcal, is low in fats (about 1 gram, without saturated or trans fats), without cholesterol and low in sodium (not considering the salt that is added in cooking). To maintain these virtuous values of pasta, it is important not to go overboard with the dressing. 10 A GOOD AMOUNT OF CARBOHYDRATES IS USEFUL FOR PROLONGED PHYSICAL ACTIVITY (90 MINUTES) Carbohydrates are the main source of energy in our diet. Our body uses carbohydrates to obtain glucose, the fuel that provides the energy required for its operation. The body can consume it immediately or store it in the liver and use it when needed. A lack of glucose leads to serious health consequences. A generous amount of carbohydrates is, therefore, recommended for an intense athletic performance

34 5 Local Communities LISTEN, UNDERSTAND AND EXPLOIT THE NEEDS, UNIQUENESS, AND RIGHTS OF THE LOCAL COMMUNITIES WHERE THE GROUP OPERATES, PROMOTING DIVERSITY AND FOSTERING INCLUSION THROUGH OPEN AND TRANSPARENT PARTNERSHIPS.

35 Stakeholder Engagement The Barilla Group has a policy of involving its stakeholders that includes the development of initiatives at various levels: from communication to collaboration in joint projects. PANEL 2013 YOU, THE PLANET 2014 Social impact and communities In 2014 report, Barilla included impact on the communities and collaboration with stakeholders for each activity described. It also dedicated a specific area of the document to local communities. In addition to the many activities in collaboration with external stakeholders, in 2013 the fifth edition of the Barilla Panel took place. This is a day of work that Barilla promotes annually together with the main categories of the Group s stakeholders: suppliers, trade associations, the scientific community, customers, non-governmental organizations, the media, institutions and business partners. The meeting is: An opportunity for debate and dialogue on the Good for You, Good for the Planet road undertaken by the Group. A debate with partners on projects and activities with the aim of understanding and appreciating the needs of the local communities where Barilla operates. The 2013 edition was the first edition of the panel to include an international round table and focused on young people under the age of 35 with a specific work group. Some important issues emerged, on the basis of which Barilla defined some of its activities in 2014, and designed its reporting system Good for You, Good for the Planet. As of 2014, the panel will not only have an Italian edition, but there will also be a session of the panel at a European level. BARILLA AND CONSUMERS ASSOCIATIONS Among the activities of dialogue with stakeholders, was an important meeting held in October 2013, in collaboration with Centromarca, with the main Italian consumers associations at the Group s headquarters in Parma. For two days, Barilla was able to analyze how it interprets business, quality and innovation: useful incentives were amassed to improve the work of the Group as a whole, working on reflections on the evolution of the relationship between the brand industry and consumers associations in this moment of strong changes in the national and international social and economic context. Internationality Goals for 2020 Critical issues Development of the supply chain as a system Consumer information at the point of sale and on products Education of the young and access to food Tradition in the future through the young: competitions and start-up Diversity Role of the company as an educator In its reporting process Barilla mapped all of the "Good for You, Good for the Planet" projects that have been carried out internationally. The "Good for You, Good for the Planet" reports for 2014 show the Group's mutual goals for Barilla summarized some critical sustainability issues (i.e. palm oil and animal welfare) through a description of the theme and the Group's commitment. In the course of 2013, Barilla developed a project to integrate various supply chains: Integrated Supply Chain Project. The 2014 Report includes the activities carried out to disseminate "Good for You, Good for the Planet" through distribution and catering channels. Barilla has carried out the educational project "Giocampus" in Parma, plus several projects to foster social inclusion. Barilla dedicated a section of its digital report to "Young Ideas" and launched an international competition for young talent. The new report has a section on "Diversity and Inclusion". Barilla continuously carries out communication and awareness-raising activities regarding healthy and environmental friendly eating education

36 From Japan: Respect in the Kitchen YOU This project has allowed the rediscovery of complete and balanced food combinations, given by pasta, fish and vegetables used together in various ways, and rediscovered as complementary ingredients. In Japan, the Barilla Group has a partnership with local farmers and fishermen to promote native crops and fish species. THE PLANET The project, known as Chi-san Chi-sho, has been active since 2007 and aims to safeguard a local vegetable and fish heritage that is little known or, in some cases, does not appeal to young Japanese consumers. For the latter reason, many farmers and fishermen have no opportunity to sell their products and in the end give up their activities which include traditional methods of agriculture and sustainable fishing. To preserve biodiversity and help the local economy, Barilla has suggested that the chefs of the top metropolitan Italian restaurants cook pasta-based dishes using local crops and fish species, to rebuild an offering that is also agreeable for younger people. Native crops are often Slow Food presidia, are not GMO, and do not require many pesticides to be cultivated. They therefore represent an excellent ingredient for sustainable pasta-based preparations There is a triple advantage: People have had the opportunity to enjoy natural local products, less expensive than other foods and, in many cases, with a lower environmental impact as a result of not having to transport the food. At the same time, farmers and fishermen have been able to continue to manage their production, resolving economic problems that risked putting an end to their activities. Finally, chefs, including the famous Japanese chef Masayuki Okuda, have had the opportunity to renew old recipes belonging to Japanese tradition, through the use of Barilla pasta as a first course. For Barilla the project has been very important to support local communities and its relationships with the chefs of the best Italian restaurants in the Japanese metropolises. In addition, the entire project has been made known on the social networks and national media. In many cases, the use of local native species has determined a reduction in the environmental footprint connected to the transport of raw materials from distant production sites. COMMUNITIES Thanks to the Chi-san Chi-sho project, local farmers and fishermen have been able to carry on their activities, surmounting economic difficulties and protecting the biodiversity of their lands

37 The Giocampus Project The Giocampus project is designed to promote proper food and physical education for children aged between 5 and 16. YOU The Giocampus project promotes sustainable lifestyles among children, educating them in informed food choices and adequate physical activity. This is a public-private alliance between the Municipality of Parma, the University of Parma, the Regional CONI Committee, the Regional Schools Office, CUS Parma and Barilla. The project is split into three phases: Giocampus School, Snow and Summer. A very important partnership, especially for the local community of Parma, as confirmed by the number of logins and followers of the Facebook page and website dedicated to the project. GIOCAMPUS SCHOOL In 2013, this involved 7,345 children, i.e. 329 classes of 27 elementary schools from Parma in nutritional and physical education including theoretical lectures and motor experiences. The physical activity in particular is supervised by Masters in Motor Activities, who are ISEF or Motor Science graduates. Instead, the healthy eating education is promoted by Masters of Taste, graduates in Gastronomic Sciences, seeing students take part in a theoretical-practical workshop on the basic principles of a healthy diet. GIOCAMPUS SNOW Consists of a week of winter sports that aims to educate young people to stick to a proper diet and physical activity while having fun in the snow. In boys were involved. GIOCAMPUS SUMMER A summer campus consisting of motor activities, games and hands-on workshops for the little ones. The participants are offered daily physical education plus a daily menu that is varied and balanced. In the summer of 2013, there were 3,400 participants. At Giocampus, moreover, children learn to respect others, as regards their specific qualities. For example, much attention is given to students with disabilities, who are involved by the Masters of Taste and Movement in all of the activities so that they can contribute to the educational and more playful moments. A PRESENT FOR PLANET EARTH A Present for Planet Earth is an initiative promoted in 2013 by the Kids Earth Fund association - KEF of Tokyo, with the aim of spreading awareness among the international community to support child victims of the earthquake in Japan. The Giocampus project was chosen as the only Italian step of a world tour whose objective was coloring the world to express solidarity and to instill hope. A sign of affection and solidarity on the part of children from all over the world who put their heads together to restore a little joy to their young Japanese peers. The goal of the collaboration was to provide a large canvas colored in by children from more than ten nations: a gift designed for the children from Watari City of Miyagi, the city hit by the devastating earthquake of In the course of a guided workshop, in fact, the children of Giocampus got together to draw and paint a large canvas which, thanks to the artistic efforts of so many other children, represents a young vision of the world. During the Giocampus School modules, the children learn the Double Pyramid model: i.e. they receive guidance on healthy eating and the environmental impact of their food choices. During Giocampus Summer, the children are involved in many activities that teach them respect for the environment (recycling, conserving resources, and the struggle against food waste). COMMUNITIES THE PLANET Giocampus represents a publicprivate educational alliance between different players with a single purpose: to promote healthy sustainable lifestyles for the young generations. In 2013, in collaboration with the Japanese association KEF, Giocampus was the only Italian step of a world tour aimed at providing a large canvas colored to express affection and solidarity with young Japanese affected by the 2011 earthquake

38 Barilla for Social Inclusion The Barilla Group is committed to promoting access to food for people in need by collaborating with local authorities involved in the management and distribution of products. YOU Barilla promotes the social inclusion of people in need through the donation of products that can contribute to the wellbeing of the people who receive them, allowing many to obtain essential food for their daily diet. Very often poverty does not mean merely an absence or lack of income, but can also mean lack of access to primary services that are essential for each of us, including food or education, due to substantive conditions of poverty, and the kind of emergency factors that can destabilize a community. For this reason, Barilla is committed both to promoting the social inclusion of people in need through food or money donations and intervening in areas that suffer damage caused by natural disasters. AID IN EUROPE Italy Banco Alimentare Foundation and the Siticibo Project: since 2012, the Barilla Group has consolidated its collaboration with the Foundation Banco Alimentare, the non-profit Italian Food Bank, one of the most important Italian organizations that deals with collecting surplus food and distributing it to local associations and charities. In 2013, Barilla s plants donated to the Food Bank Foundation, a quantity of produce amounting to over 1,000 tons. Moreover, several Barilla Group employees participate every year in the National Food Collection Day. In one day, thanks to all the Italian volunteers and families who made purchases at the more than 11,000 supermarkets involved, collected 9,037 tons of food for the needy. In addition, 2013 saw the launch of the Siticibo project, aimed at making the most of the surplus left over from catering. Barilla decided to participate in Siticibo through their company canteens and also by retrieving surplus fruit and vegetables at the Giocampus Estate project canteen. This is an initiative that initially involved only the Parma headquarters, but which over the course of 2014 will be spread to other plants of the Group in Italy. In 2013 alone, 4,400 dishes were donated by Barilla s canteen in Parma. Social Markets and Charities in Parma and Fidenza: in 2013, as part of the celebrations for the centenary of the birth of Pietro Barilla, a donation was made to the Social Markets (Empori Solidali) and the local Diocesan Charities of Parma and Fidenza to the tune of 168 pallets of Barilla products. Caritas in Rome: a donation was made to the charitable organization in Rome to create a project to restore the Night Reception Center and the Don Luigi Di Liegro Evening Canteen. Thanks to volunteers and social workers, for the last 26 years, the Caritas in Rome Hostel has been involved in listening activities, welcoming and reintegration of marginalized people, offering them a bed for the night and a hot meal in the adjacent evening canteen. Thanks to the contribution from Barilla, by the end of 2014, the new structure will have facilities for workshops and training aimed at the rehabilitation of disadvantaged people. Polisportiva Gioco Onlus a non-profit sports club: Barilla donated financial aid to this voluntary non-profit association which has been working for 25 years in and around Parma to promote integration and individual development through sports activities seen as play. This association, desired and managed by disabled people, is primarily for children. Food donations mean being virtuous even in the last mile of the food supply chain, thus avoiding disposal costs and waste of products and, consequently, environmental impact. In addition, not wasting food means not wasting the natural resources used to produce it. COMMUNITIES THE PLANET The social inclusion projects are carried out in collaboration with local authorities responsible for recognizing the disadvantaged, who are reached through product management and distribution channels. In addition, they help improve the living conditions of families in disadvantaged conditions that may improve over time thanks to small contributions

39 ITALIAN DONATIONS IN 2013 Donations to other associations 31% 69% Donations to Banco Alimentare Greece Support for Social Markets and The Smile of the Child : The recent economic crisis in Greece has led to a life of poverty for many families. Barilla s Greek branch and its plant in Thebes donated Misko brand products to a local NGO called The Smile of the Child and started to collaborate with various social markets for the needy. In addition to the products, the Mediterranean food model was also taught, so that people become aware of the nutritional benefits they are receiving. In total, in 2013, almost 100 tons of product were donated: 763,000 first courses to people in need through the social markets and 20,000 servings of pasta to needy children aided by The Smile of the Child. Sweden Every year, the Barilla factory of Filipstad in Sweden donates several tons of crisp bread as humanitarian aid. In tons were donated. AID IN ASIA Also in the Philippines, following the disastrous earthquake in 2013, the Group managed to make its contribution. Unfortunately, due to the logistical impossibility of sending essential goods, it was not physically possible to deliver Barilla products, so a financial donation was made to the Red Cross in Singapore of 10,000 Singapore dollars to support the earthquake victims. AID IN AMERICA Caterina s Club: in America, 70,000 pasta dishes were donated to Chef Bruno Serato, chairman and founder of Caterina s Club Feeding the Kids. Bruno Serato is an Italian chef who received an award from CNN as one of the top 10 heroes for 2011 for his commitment year in year out to the livelihood of about 50,000 disadvantaged children in Orange County California, giving a free plate of pasta to hundreds of children in serious economic difficulties every day. Feeding America: for years, Barilla America has worked with the organization Feeding America to make the most of surplus production for charitable purposes. In 2013, over 20,000 meals were donated to the needy, for a total amount of about $100,000 in donations. Annual Toy and Coat Drive: in collaboration with the Walter and Connie Payton Foundation in Chicago, each year toys and coats are collected from the children of Barilla employees which are then donated to homeless or needy children. About 350 needy children received toys, and more than 200 a coat. In addition, through the School Supplies Drive, employees can help children in need by donating school supplies. Lastly, at Christmas time, through the initiative Toys for Tots, the Ames plant organizes toy donations: in 2013 $600 that had been collected from employees were donated

40 6 Barilla People PROMOTE THE PROFESSIONAL DEVELOPMENT OF THE PEOPLE WHO WORK FOR THE GROUP, ENCOURAGING THEIR COMMITMENT AND EXPLOITING DIFFERENCES, SO THAT THEY CAN BE AMBASSADORS OF BARILLA S IDENTITY, VALUES AND FOOD CULTURE IN THE WORLD.

41 Diversity and Inclusion For the Barilla Group, equality, inclusion and the personal development of each individual are critical values to build solid, professional, human capital, in the end enriched by everyone s contribution. YOU The Smart Working project has contributed to improving the workspaces at the Group s premises, developed around the activities and no longer around individuals. The Group s Code of Ethics speaks of a Barilla style that involves an ethic of respect for all people, who are the main pillar and constant point of reference for everything the company does. The importance of the individual person means promoting her or his value, through respect for their physical, cultural and moral integrity and respect for their relationships with others. GLOBAL DIVERSITY & INCLUSION BOARD In 2013 a Diversity & Inclusion Board was formed, i.e., a working group composed of Barilla employees and external experts with different objectives: To help Barilla become a model corporate citizen on diversity and inclusion. To assess current internal policies and initiatives. To make recommendations on improvements. To implement new initiatives and monitor and measure progress. To promote and support programs on diversity in the communities in which Barilla operates. THE SMART WORKING PROJECT Barilla Smart Working is a project to promote diversity, a balanced, sustainable lifestyle and a work culture based on the results. Smart Working means that Barilla employees have greater autonomy on when, where, and how to work, determining and adjusting their working procedures according to both personal and company needs. The project is based on three fundamental pillars which coexist and complement one another: Technology, defined as the set of the most modern and advanced tools to make work faster and more efficient. To this end, new technological tools have been supplied to people in the company: digital spaces for sharing, smartphones, and in-house social networking. Workspaces are no longer designed around individuals, but around activities, so as to facilitate interaction, flexibility and wellbeing. Work practices and behavior are encouraged that enable people to deliver the same excellent results in a more flexible way. During 2013, the project launched in key countries where the Group is present: the United States, Singapore, Italy, Switzerland, France and Germany. The introduction of Barilla Smart Working represents an important new element in the ratio of work, since it is based on a relationship of mutual trust between managers and their teams: it requires the people involved to demonstrate a high level of accountability and results-orientation, and from managers a commitment to be smart, i.e., capable of collaborating effectively with and delegating to their working groups, even in a virtual environment. In October 2013, the Smart Working Observatory of the Polytechnic of Milan granted a special mention to the Barilla Smart Working project. In fact, together with Tetra Pak and Mars, the Group was recognized as being among the successful businesses that demonstrate how new organizational approaches can help to create an effective working environment for businesses, and at the same time for workers and society as a whole. Last but not least, the project obtained the Barilla Excellence Award, an internal award that is given each year to the best company activities for promoting staff wellbeing. Thanks to the Smart Working project, Barilla employees can follow their own work by means of a remote connection. In fact, through tools for digital management of the activities, every person can develop their own projects, and also cut down on commuting. COMMUNITIES THE PLANET The Smart Working project improves the wellbeing of the Group s employees and, consequently, of their families too, making the balance between work and personal life more and more sustainable

42 The sì.mediterraneo Project sì.mediterraneo is a project of healthy eating education and canteen management developed for the Group s employees. YOU The sì.mediterraneo project was developed by Barilla to help its employees eat more healthily, by offering a varied, balanced menu in its company canteens, both for the offices and the plants, to promote people s wellbeing. The project sì.mediterraneo has a twofold objective: 1. To increase awareness of the benefits of the Mediterranean Diet and the relationship between food choices and environmental impact, as demonstrated by the Double Pyramid model. 2. Improve the eating habits of Barilla employees through nutritional education, prompting them to become ambassadors of the Mediterranean model. The initiative was developed in the course of 2011, first at the Parma headquarters, and then extended across Italy and in the USA in 2012, but it was only in 2013 that the project was transformed into a global commitment of the Group, to take in Barilla s plants in Europe, Asia, Brazil and Canada. To date, the project has reached 6,000 employees and it is planned to disseminate and consolidate it further over the course of Canteen menus have been prepared in line with the Mediterranean model, with a calculation, in addition to the nutritional values, of the environmental impact. In addition, the spaces for eating were decked with posters and other notices so that Barilla employees have available all the main information on the Mediterranean Model. This project is a fine example of adapting a model to local cultures: in fact, the Mediterranean model has been contextualized according to the sites where it has been promoted, enhancing the food diversity and lifestyles of the various countries where Barilla is present. The results on employees food choices have been impressive: in the Parma canteens alone there has been a doubling in the consumption of whole grain pasta, plus a 40% increase in the consumption of whole grain bread. Consumption of fruit and vegetables has improved, while there has been an increase in the consumption of white meat. As regards dissemination at an international level, some virtuous practices have been developed: in the Celle plant in Germany and in Sweden, in 2013, employees re-launched a dedicated intranet dedicated to lifestyle, which is a sort of social networking on the issues of nutrition and wellbeing. In Greece educational sessions have been organized as well as a weekly Pasta Day for office staff. Meanwhile, the Singapore office organized a Mediterranean lunch to launch the project, combining this with an educational session. In Russia, every week easy-to-prepare recipes are distributed that highlight the benefits of the Mediterranean Diet. Even Canada and Brazil have welcomed the initiative with enthusiasm, offering meals dedicated to raising awareness among employees and to introduce the Mediterranean model to new recruits. Last but not least, in the United States, the project received a positive reception from employees who began to enjoy their lunch break together, introduced nutritionally-balanced products into vending machines, and called on external experts to go deeper into the Mediterranean model. Not only are Barilla employees advised on the menu of the calorie intake of the food they are consuming, but also the environmental impact related to their choice. COMMUNITIES THE PLANET The people who work for the Group are prompted to become ambassadors of Barilla s food culture and to promote the values of the Mediterranean Diet and its environmental impact at home, with a resulting effect on the local communities in which they live

43 Notice me, look at me, see that I am different from others! Do you understand that I am special? You re reading my story. My Father is the Grain of Durum Wheat, who grew up in a beautifully green field, then slowly became golden, thanks to the warm sun and the passion of the farmer. The Grain is reborn every year: the most nutritious part of it becomes semolina, from which we get fragrant and tasty pasta, which is also good for People and the Planet. Part of my Father, though, is transformed and becomes Bran, which is very rich in Fiber. This Bran is born in an extraordinary place: the Barilla mills. When it is ready and is no longer needed for people food, instead of being abandoned by the creativity of Man, is accompanied on a new journey: to FAVINI. There the Bran meets virgin and recycled Cellulose Fiber. So, I am their Son: it s me, Cartacrusca. I have a good nature, I have excellent quality and I am uniform. But most importantly, I have a reduced environmental impact versus other paper. Tell your friends my story! In collaboration with the Italian paper mill FAVINI, in 2013 Barilla promoted a project to use bran for paper production. Thus was born Cartacrusca, i.e., a particular paper, in which 20% of the cellulose from trees has been replaced by bran produced at Barilla s mills. The papers are FSC certified, made with 20% of bran and is produced with 100% green energy. The production process and the product are protected by European patent. The 2014 Report Good for You, Good for the Planet is completely printed with Cartacrusca 120 gsm and 250 gsm