1/26/2015. My Farm. General Mills at-a-glance. General Mills Sustainability Connecting the Dots: CCAs Impact Beyond the Field.

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1 General Mills Sustainability Connecting the Dots: CCAs Impact Beyond the Field January, 2015 General Mills at-a-glance My Farm 3 1

2 The Sustainability Imperative 4 Conserve Resources and Strengthen Communities Upon Which our Business Depends Value Levers Economic Efficiencies Risk Management Growth 5 Internal Supply Chain Metrics F12 Results v F15 Goals 2015 Goals F12 Total Co Waste (lbs waste/lbs produced) Water (gallons/lbs produced) Energy (Kwh/lbs produced) Greenhouse Gas (m-tons/lbs produced) Packaging (% Improved) Logistics (gallons/ton shipped) -50% -20% -20% -20% 40% -35% -40% -10% -10% -11% 52% -17% Extend Packaging Metric to 60% by 2015 Volume deleverage -7% F12 v F10 Energy team Big G 6 2

3 Why Sourcing Matters GHG Emissions Water Consumption 12% 3% 1% 2% 0% 41% Agriculture Packaging supply chain Ingredient manufacturing Product manufacturing 14% 3% 1% Agriculture Packaging supply chain Ingredient manufacturing Product manufacturing 12% Distribution (Retailing) Distribution (Retailing) GMI DC GMI DC GMI Transportation GMI Transportation 8% Consumer/customer preparation Consumer/customer preparation 7% 14% Consumer/customer storage Consumer/customer transport 82% Consumer/customer storage Consumer/customer transport GMI is working on Sustainability programs across: 75% of our GHG footprint 99% of our water consumption 7 Sourcing Health Environment Sourcing Workplace Communities OUR GOAL is to sustainably source the raw materials we use in our products. We are committed to sustainably sourcing 100 percent of our 10 priority ingredients by Our Strategies Increase sustainability of ingredients Collaborate to improve global water stewardship Advance socially responsible supply chains Increasing sustainability of ingredients Health Environment Sourcing Workplace Communities 3

4 Definitions of Sustainability Certification Continuous Improvement Origin Direct Investment Self Verification Sugarcane Palm Oil Row Crops: oats, wheat, sugar beets, corn Dairy Vanilla Cocoa Fiber Packaging Animal welfare 10 The Power of Field to Market Idaho Regional Engagement: Paving the Way for FTM Opportunities & Incentives for Improvements Field to Market Benchmarks Data Facilitators Sourcing Region (boundaries & participation represent sourcing by GMI & other downstream companies) 0.. Grower Pilot Participants Capturing Data with Land.db Learning s from Aggregate Information SE ID Crop & Rotation Analyses Grower & Regional Story Potato Processor & Shipper GMI Wheat Sugar Processor Sustainable Sourcing Claims Downstream Efficiency Delivered Through Shared Cost 12 4

5 Analyzing the Sustainability Story of Southern Idaho Wheat Production The Big Picture: Producers Making a Difference Why measure? Global attention to agriculture s impact on the environment is turning to each individual's contribution. We live in a resource constrained world with an increasing population. To meet the future demand for food, we must increase efficient production while sustaining our natural resources. How are we doing? (Focus areas & progress) Program is now in it s fifth year of data collection Expansion of rotational crops to include spring wheat, winter wheat, potatoes, sugar beets and barley Individual Grower Reports provide relevant feedback to each grower and Grower Workshops provide guidance for improvements What have we learned? (Understanding trade-offs & opportunities) Did you Know? Baseline datasets need a minimum of three years of data, with 4-5 years of data preferred Wheat is utilized in dozens of consumer food products and worth more than $500 Economics, weather and rotation have major influence on sustainability. million dollars to the Idaho economy. Other contributing factors include quality attributes, pest pressure and the yield potential of the field Environmental Performance for Idaho Wheat Production (relative to benchmarks) 21 growers +11% +18% Human Element Soil Carbon CO 2 GHG Emissions 115,500 acres characterized +10% +14% +16% 4 years of data Land Use +10% Water Use Energy +14% +10% 6 Field to Market metrics 5 crops characterized Nitrogen Use Yield Soil Loss Notes: This evaluation benchmarks pilot participants relative to the 5 year average for the corresponding Crop Reporting Districts. A positive value (upward arrow) suggests improvement in performance and a negative value suggests a decline in performance. 1 farm management recordkeeping system 13 GMI s 7 Regional Engagements Snake River (SE Idaho): Wheat: 115,000 acres Wheat, potatoes, sugar beets & barley Partner: Syngenta Western Canada: Manitoba & Saskatchewan: Cereal grain: Oats & wheat Oil: Canola Pulses: Peas & Lentils Partners: Pulse Canada, Canola Growers, POGA, Farmers Edge & Agri-Trend Red River Valley: Sugar Beets, Partners: RRVSGA & American Crystal Sugar N Plains: Wheat & canola Partners: ADM, CHS? Ohio: Wheat, corn & soy Mennel Milling, EDF, Syngenta & Farmers Edge Wisconsin: Dry Milled Corn & soy Didion Milling S Plains: Under construction Wheat 14 CCA s are key to Scaling FTM Field to Market history: Yesterday: Cloud based independent Field Print calculator Today: Supply Chain initiatives Tomorrow: CCA s: Scale with established & trusted crop advisors 15 5

6 Innovation & Partnerships Walmart & General Mills Innovation Challenge Innovation Champions: United Suppliers Sustain Program Ag Technology Corp Adapt N Bringing innovation to our grower engagements: Idaho N Plains Red River Valley 16 Thank You & Contacts Global Responsibility Report 10 x 20 Press Release Steve.Peterson@genmills.com 17 GLOBAL SUSTAINABILITY 6

7 Why Sustainability Matters GLOBAL SUSTAINABILITY Sustainability fits with our core values These types of commitments are very important for our consumers, improving the trust in our foods: It strengthens the equity (integrity, trust, progress) in our brands It drives relevance for our strategic categories It builds corporate reputation And it supports delivery of business results Why Sustainability Matters GLOBAL SUSTAINABILITY What drives Sustainability Reporting? Transparency with Stakeholders 70 Competitive advantage 60 Risk management 50 Stakeholder pressure Company Culture 20 Brand Reputation 10 0 Manufacturing Sector From Ernst and Young LLP, Value of sustainability reporting, 2013 Consumers Care: Increased demand for transparency What is in our food? Where does it come from? Build trust Connect with consumer on values Community, Health, Environment Quality Talk about the ingredients and the people who put so much time and love into growing that food GLOBAL SUSTAINABILITY Supporting the livelihoods of individuals, families and communities that rely on us and on whom we depend. Conserving natural resources where our ingredients are sourced and our foods are made. Driving consumer demand by building trust and love for our foods. Visit K Connect to learn more about the company s new sustainability commitments. 7

8 2020 Commitments GLOBAL SUSTAINABILITY Responsible Sourcing GLOBAL SUSTAINABILITY We are focused on enriching the lives of the farmer families, and/or communities from which we source key ingredients. We will support smallholder farmers and women growers Responsible Sourcing by 2020 GLOBAL SUSTAINABILITY By 2020, we will responsibly source top 10 ingredients and materials as defined by continuous improvement and direct investment Corn Vanilla Rice Palm Oil Wheat Cocoa Potatoes Honey Sugar Beet & Cane Fruit Oats 8

9 Responsible Sourcing Metrics We will be measuring continuous improvement within our supply chain on these main areas: Resilience to Climate Change Greenhouse Gas Emissions Fertilizer Optimization Water Use and Water Quality Soil Health Social Metrics GLOBAL SUSTAINABILITY Responsibly Sourcing U.S. Corn GLOBAL SUSTAINABILITY Partnering with Field to Market and Bunge, our corn grit supplier: Growers Acres Measured 2,000 40,000+ Representative Acres 10, ,000+ This was enabled by: Interested growers because this engagement was part of a quality initiative Engaged supplier who was interested in building better and stronger relationship with growers Brand pull from the growers: knowing that their corn is going to food that their family loves What is missing? CCAs and ag retailers Kellogg and Bunge can do more to engage CCAs and local trusted experts Responsibly Sourcing from the Great Lakes GLOBAL SUSTAINABILITY Kellogg Company is working with USDA, growers, millers, CCAs, ag retailers and NGOs on a number of Regional Conservation Partnership Programs (RCPP), recently approved by the Secretary A $10 million grant to growers to improve water quality and reduce runoff in the Saginaw Bay by working with farmers to better plan nutrient management, limit tillage and other BMPs Kellogg will be working with sugar beet and wheat growers to use Field to Market s fieldprint calculator for data capture Partners Included: The Nature Conservancy, Michigan Agribusiness Association, Star of West Milling, Michigan Sugar, Co-op Elevator 9

10 Responsibly Sourcing U.S. Rice GLOBAL SUSTAINABILITY Kellogg s Master Rice Grower Program: Partnering with the Louisiana Rice Mill and the LSU AgCenter, the program works with growers to educate and implement conservation plans Partnering with USDA, the USA Rice Federation, Ducks Unlimited and other partners for the SW Louisiana RCPP and the national Rice Stewardship Partnership Sustaining the Future of Rice RCPP These partnerships will provide growers support in data capture like the fieldprint calculator and other tools, as well as USDA-funded cost share of over $11M for the implementation of conservation practices and continue to provide migratory birds habitat. A dissection of an engagement project GLOBAL SUSTAINABILITY What parties need to participate? Engaged growers, primed for cooperation and co-learning Processors who see benefit in being a customer of choice for their growers Project managers who can focus on analytics: this could be an input provider, ag retailer, extension service provider, CCA What needs to be delivered? A 2-way communication to share with growers what opportunities are for cost savings and environmental outcomes Bring it beyond the direct participants to all the growers Share with growers and partners how this will be shared externally Work together to find environmental outcomes Kellogg Company Commitment GLOBAL SUSTAINABILITY Working to support our growers and suppliers who help make our foods great Our consumers care about how our food is grown, and so do we We are energized to make a difference 10

11 Connecting the Dots: CCAs Impact Beyond the Field Kari Niedfeldt-Thomas Senior Manager, Social Responsibility and Executive Director, The Mosaic Company Foundation January 27, 2015 The Mosaic Company Overview Mission: We help the world grow the food it needs. Incorporated March 2004; formed through combination of IMC Global Inc. and fertilizer businesses of Cargill 100 years of phosphate mining history in U.S. 50 years of potash mining history in Canada Fortune 500 company $9.0 billion in sales CY13 Customers in approximately 40 countries 8,900 employees with operations and joint ventures in: 1. United States 2. Canada 3. Brazil 4. Paraguay 5. China 6. India 7. Australia 8. Peru (joint venture) 9. Saudi Arabia (joint venture) Mosaic: Largest Phosphates & Potash Company Largest integrated phosphate producer in the world 4 active phosphate mines in central FL 6 phosphate fertilizer manufacturing facilities in FL & LA Fourth largest producer of potash in the world 3 mines in Saskatchewan, including world s largest potash mine 1 mine in NM One of largest producers and marketers of phosphate-based animal feed ingredients in U.S. World's Largest P + K Companies Mosaic CF PotashCorp Uralkali Belaruskali OCP Israel Chemical K2O K+S P2O5 Qinghai Salt Lake Vale PhosAgro Million Nutrient Tonnes Source: IFA, CRU, Fertecon and Mosaic Based on 2013 production Mosaic's P 2 O 5 production includes CF Industries Phosphate Unit P 2 O 5 production based on PACID and SSP production K 2 O production based on MOP, SOP, and KMS production 11

12 Mosaic s Phosphate & Potash Business Units Phosphorus-bearing ore Obtained through surface mining with both draglines and dredges Mosaic FY13: 59% of North American and 12% of global concentrated phosphate crop nutrient production (DAP/MAP/MicroEssentials ) Potassium chloride-bearing ore Obtained through both underground shaft and solution mining Mosaic FY13: 43% of North American and 14% of global potash production Sustainability at Mosaic Food Security Balanced Crop Nutrition Product Innovation The Mosaic Villages Project Land, Water, Energy, Air Nutrient Stewardship Safety Employment Practices Employee Development Supply Chain & Contractors Diversity and Inclusion Sourcing Governance Partnerships Management Structure Management Systems Community Investment Stakeholder Engagement Employee Involvement Corporate Social Responsibility Recognition Recognition for Our CSR Efforts 12

13 Operational Sustainability: Continuous Improvement In Florida, Mosaic planted more than 1.3 million trees in 2013 Product Sustainability: Nutrient Stewardship 4R Framework 4R Partnerships By 2050, Must Feed Over 9 Billion People 13

14 Agriculture: Protecting Habitats and Biodiversity Answer: Sustainable Intensification Global Food Security Requires Crop Nutrients 17 Essential Plant Nutrients 14

15 4R Principles 4R Sustainability Click and to the edit Supply Master Chain title style 44 CCAs are critical: Link farmers to downstream supply chain goals Decipher sustainability Educate supply chain on what works for environment AND what matters for yields 15

16 How Define Sustainable Agriculture Meeting the needs of the present while improving the ability of future generations to meet their own needs by: Increasing productivity to meet future food and fiber demands Improving the environment Improving human health Improving the social and economic well-being of agricultural communities Field to Market Deliverables National Indicators Report: Documentation of overall trends Fieldprint Calculator: Grower continuous improvement Fieldprint Projects: Supply chain continuous improvement Public data and models Collaboratively developed Outcomes based National Indicators Report Environmental Indicators Socioeconomic Indicators Production and Yield Land Use Soil Erosion Irrigation Water Applied Energy Use Greenhouse Gas Emissions Debt to Asset Ratio Returns Over Variable Costs National and State Gross Domestic Product Non-fatality Injury Fatality Labor Hours Example: Soybeans 2012 Results 48 16

17 Fieldprint Calculator Measuring field level outcomes and identifying opportunities for improvement An online education tool for row crop farmers that indexes their agronomics and practices to a Fieldprint Helps growers evaluate their farming decisions and compare their sustainability performance Fieldprint Projects: Supply Chain Partnerships in 15 States Corn Cotton Potatoes Rice Soy Wheat 17

18 @MosaicCompany Dan Armbruster CCA Cooperative Elevator Co Work for Cooperative Elevator Co. Located in the thumb of Michigan I am a CCA Very diverse cropping Dry Edible Beans, Soft White Winter Wheat, Sugar Beets, Corn, Soys, Alfalfa, Beef Cattle, Dairy cattle Products that go directly to the consumer Directly involved with End Users Traceability is important Implementing new programs all the time 18

19 What is expected of a CCA What is Sustainability What Practices are Farmers implementing What is being asked from Food Supply Chain What does the future look like??? CCA Producers trusted resource Continuing Education and Network of Information Makes educated decisions Well informed and knowledgeable Rely on CCA s to bring new information to the farm gate. Credible information CCA expectations Economically and Environmentally sound recs. Important for credibility Also important for respect and trust from producer Continuing Education for CCA s Required to retain certification Keeps us informed on new practices and information End users will want to work with CCA s CCA is the connection between the two parties Data and record keeping will be in our hands 19

20 Definition Efficient production of safe, high quality ag products, in a way that protects and improves the natural environment. Basically means leaving the ground the way that you left it. Carbon Footprint VRT spreading and equipment B20 Diesel Fuel, Multiple Bin Sprayers, More Efficient engines. Farmer Practices Telling our Story We have been recommending, implementing, and perfecting these practices for years. Producers love the dirt they farm Important for future of agriculture Farming is the future for multiple generations VRT technology Soil sampling Precision spreading/spraying Cover Crops Soil health-important for sustainability Full program Soil sampling, Planting, Fertilizing, Spraying, Tissue Testing, Yield Mapping All practices are important to a complete approach of agriculture Site Specific Ag Sampling in Grids or Zones Allows us to be extremely precise in our practices Put fertilizer where the ground needs it Follow Tri-State recommendations 20

21 Variable Rate Seeding Use soil test maps or yield maps to build zones Results in higher yields with less inputs Variable Rate Nitrogen Similar to seeding Allows us to treat varying soils differently Traceability Record Keeping Field to Fork End Users requesting this information Will fall upon farmers and CCA s to work together to gather and keep this information Growers Feel Good about knowing where there food is coming from This is what will drive consumers demand in the future More Focus on Ag We need to be at the forefront of information Social Media Twitter, Facebook, Blogs Informed and sound information Continued regulatory pressure Government officials Talk about what we are doing not what we have done Tell our story We have a good one to tell!!! 21

22 Younger Generation will demand more of this information Need for information will be huge!!! Consumers drive the market Continued improvement coupled with technology New practices are always being introduced with sound scientific data behind them Up to CCA to inform producers of these practices Farmers are already practicing sustainable ag Numerous practices are in place and with technology this will continue to grow Important economically for agriculture Traceability Important record keeping and for Field to Fork program Again most of this is already being practiced CCA s Role in this Recs made from CCA s are sustainable and important for the producers Technology Farmers are on the cutting edge of Technology Site specific ag has been practiced since the 90 s Will continue to change Younger generation of farmers will demand this Willingness to comply We have to be proactive and willing to work with end users to guarantee our spot in the future! A unified approach will be a win win for the entire industry 22

23 Soil Sampling Rigs Used for Grid Sampling This is a VRT fertilizer map Gray areas indicate no fertilizer spread in that area VRT Lime Spreading 23

24 Multiple Product Spinner Machine Allows us to spread two products at once. Thank You For Your Time!!!! Any questions??? 24