Europe 2012 Corporate Social Responsibility Report

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1 Europe 2012 Corporate Social Responsibility Report Health Communities Environment

2 General Mills mission is Nourishing Lives. Every day, we work to earn the trust of consumers. Being a responsible corporate citizen is integral to maintaining that trust. We are proud of the progress we re making and we are committed to doing more. Ken Powell, Chairman, Chief Executive Officer, General Mills Corporate social responsibility is at the core of our Nourishing Lives mission. We continually set targets for bettering the nutritional profile of our foods. We re also committed to addressing social and environmental challenges. Our goal is to be among the most socially responsible food companies in the world. This report summarizes the progress we ve made over the past year. It s organized into three sections. Health: The nourishment we provide describes how we nourish lives through improving the nutritional profile of our food products and encouraging healthy eating. See p. 1. Communities: The people we serve describes how we engage with communities and stakeholders by volunteering our time, fighting hunger and earning a reputation as a great place to work. See p. 4. Environment: The planet we share outlines our strategy for becoming a more sustainable company, and the progress we ve made toward ambitious goals in areas such as reducing waste. See p. 7. To see our full Global Responsibility report, go to GeneralMills.com/ Responsibility. Recognition for our efforts Our efforts to build a responsible, sustainable and forward-looking company have been recognized by several third-party organizations. Best Workplaces in the UK, France and Greece, The Great Place to Work Institute Spain s Most Family-Friendly Companies, Fundacion Mas Familia World s Most Admired Companies (No. 47), Fortune 100 Best Corporate Citizens (No. 12), Corporate Responsibility World s Most Ethical Companies, Ethisphere Institute This year our full Global Responsibility report follows the Global Reporting Initiative (GRI) guidelines, a standardized framework for reporting on corporate social responsibility. This reflects our commitment to become more transparent with our stakeholders. Table of Contents Health 1 Communities 4 Environment 7 The nourishment we provide The people we serve The planet we share

3 Health: The nourishment we provide Health Communities Environment Our goal is to provide nutritious foods that when combined with exercise and activity can help people live healthier lives. Improving our health profile Improving the health profile of our products is integral to our success as a company. One way that we improve the health profile of our foods is by reformulating products to reduce levels of nutrients that health experts recommend eating less of, including saturated fats and sodium. Our Green Giant brand, for example, is lowering the sodium in its canned vegetables by 5 to 35 percent across Europe, Russia, Adding whole grain Our Cereal Partners Worldwide (CPW) joint venture, the second-largest cereal provider in the world, is making significant improvements in the health profile of its many cereals. Since 2003, it has increased global consumption of whole grain by more than 3.4 billion servings and Africa and the Middle East. This sodium reduction effort has already been implemented in 90 percent of Green Giant products including sweet corn, artichokes and hearts of palm in these markets. We also support the United Kingdom Department of Health s 2012 sodium reduction targets and are working to meet those goals. In addition, sodium level is a key factor that we take into account when developing new products across all General Mills brands. reduced sugar by more than 9,141 tons. All of its global brands Fitness, Cheerios, Chocapic and Nesquik now have at least 8 grams of whole grain per serving. In 2009, CPW also pledged to reduce the sugar by an additional 20 percent in its cereals that are advertised to children. Our health priorities Provide clear nutrition labelling, including guideline daily amount information. Ensure that nutrition is one of the criteria guiding our new product development. Support World Health Organization guidelines by promoting the consumption of fruits and vegetables. Encourage active lives. Our Nature Valley brand, for example, supports walking trails and is an official sponsor of the London 2012 Olympic Games (with rights that cover Great Britain). 3.4 billion Since 2003, our Cereal Partners Worldwide joint venture has increased global consumption of whole grain by more than 3.4 billion servings. General Mills Europe corporate social Responsibility report 1

4 Health: The nourishment we provide Promoting healthy habits With a hand from technology and Green Giant UK, children in Manchester, England, got the chance to high-5 the Green Giant while learning about the importance of eating fruits and vegetables. As part of the brand s High-5 campaign, a computer-animated image of the Green Giant was broadcast on a large screen at Manchester s Old Trafford shopping centre. Children could jump up and give the Giant a virtual high-5. The High-5 campaign, which has Olympic hurdler Colin Jackson as its spokesman, aligns with the UK government s effort to get people to eat at least five servings of fruits and vegetables per day. British families are falling short at just 2.6 portions. We hope to get kids from 2.6 to 5 a day and establish healthy eating habits for life. It s part of the pledge we made to help improve health in the UK when we signed on to the Responsibility Deal a set of voluntary agreements covering food, physical activity and health at work that is backed by the UK Department of Health. Green Giant France has also been an active participant in the 5 a day campaign to encourage people to add more healthy fruits and vegetables to their diet. Developing healthy new products Nutrition is an important part of our product development process. We ve established nutrition guidelines for General Mills brands that are designed to limit those ingredients that experts recommend eating less of such as saturated fats and sodium while UK Responsibility Deal Alongside other leading food companies and retailers, General Mills UK has committed to: Improve the nutrition profile of the foods we provide. Promote a healthier workplace. promoting whole grains, fibre, fruits, vegetables and other healthy nutrients. Our goal is to find the right balance of nutrition and taste. Because we know from experience that a healthier food cannot provide nutritional benefits if it is not eaten. Encourage physical activity. Promote consumption of fruits and vegetables. Product labelling To help consumers make informed food choices, General Mills has implemented frontof-pack labelling that lists not only the total calories, sugars and other ingredients per serving, but also the percentage of the guideline daily amount that those totals represent. In 2011, we launched Green Giant organic sweet corn in France for those consumers who prefer organic options. Our organic sweet corn products have been available in the UK since General Mills Europe corporate social Responsibility report

5 Health Communities Environment New era for General Mills, Yoplait General Mills and the iconic French brand Yoplait took their relationship to a new level in 2011, with the acquisition by General Mills of a 51 percent interest in Yoplait S.A.S. and a 50 percent interest in a related entity that holds Yoplait brands. Yoplait is the No. 2 yogurt brand worldwide and is available in more than 50 countries. Yoplait production facilities in France are located in Le Mans, Monéteau and Vienne. The Yoplait line of products is aligned with our goal of providing nutritious foods to help people live healthier lives. For example: Yoplait Calin+ has 400 milligrams of calcium per serving and covers 50 percent of the recommended daily intake. Calcium helps to maintain strong bones. Within western countries, more than 50 percent of women don t get enough calcium. Yoplait Calin+ also provides 5 micrograms of vitamin D per serving. Yogurt has live and active cultures that help support lactose digestion. The union between General Mills and Yoplait is another step in our company s long history in France. Green Giant vegetable products, for example, arrived in France in France is also home to our global Häagen-Dazs business. Nature Valley: Emphasizing a healthy balance Throughout the world, our Nature Valley granola bars are closely linked with physical activity and the great outdoors one more way we emphasize the importance of balance between exercise and eating. In the UK, for example, we provide free samples of our bars at many outdoor events, such as the Race for Life running series that raises money for cancer research. We re also proud to be the official supplier of granola bars to the London 2012 Olympic and Paralympic Games (with rights that cover Great Britain). 19,000 Around the world, more than 19,000 pots of Yoplait dairy products are eaten every minute. A Yoplait Panier 0% has 45 calories per serving and also is a source of calcium. $ 75% Since 2004, we ve increased R&D spending on health and wellness by 75%. General Mills Europe corporate social Responsibility report 3

6 Communities: The people we serve Health Communities Environment We gave more than US$118 million in foundation grants, product donations and other charitable contributions in fiscal 2011 an increase of 18 percent over Nourishing lives around the world Our charitable programs including employee volunteerism are organized around our core food business: To provide food to those in need. To develop and share food solutions. To help families make nutritious food choices. To integrate food with healthy, active lifestyles. A values-based culture is at the core of our long-term business strategy. We believe that doing well by doing good is a prescription for success. The US$118 million we gave in fiscal 2011 supports programs such as Partners in Food Solutions (PFS), which links the expertise of General Mills employees and other food industry experts with small- and medium-sized food processors in Africa. PFS helps organizations such as Project Peanut Butter, which produces a high-calorie, peanut-butter-like paste that s been recognized as the most effective way to treat severely malnourished children. One of our Project Peanut Butter initiatives was led by James Blair, quality assurance coordinator at the Jus-Rol plant in Berwick, UK. Blair conducted an inspection of the Project s new Sierra Leone facility to ensure it was ready for a UNICEF audit. By meeting internationally recognized UNICEF standards, Project Peanut Butter can sell its life-saving product $118.7 million The amount we gave to charitable causes in fiscal 2011 up 18 percent from Corporate Contributions/ Brand Partnerships $65.1 million to global organizations and local aid agencies and hospitals for distribution to those who need it. Our fiscal 2011 donations also supported a number of community-building programs in Europe. In Germany, General Mills gave US$15,000 to provide cooking classes to poor families. In Greece, we provided US$10,000 in support to Foundation Grants $25.4 million Product Donations $28.2 million Junior Achievement Greece, which helps prepare young Greeks to succeed in the global economy. In France, a General Mills donation allowed the Apprentis d Auteuil Foundation to create an educational kitchen garden. In Spain, we developed a nutritional program for handicapped children together with the charity Apsuria. $1 billion The amount we ve given to charitable causes since the General Mills Foundation was created in More than 500 General Mills employees contribute their time, knowledge and passion for helping people to Partners in Food Solutions. 4 General Mills Europe corporate social Responsibility report

7 Health Communities Environment All aboard for education General Mills UK is giving London school kids the chance for adventure and a unique learning experience on board a boat travelling one of the country s historic waterways. We ve joined with the educational charity The West London Floating Classroom to safeguard the future of a specially modified boat that takes the school kids along the Grand Union Canal, part of the UK s extensive canal system, for a one-of-a-kind lesson in science, the environment, history and their heritage. The plan is also to refurbish the interior of the Elsdale II named after another floating classroom that taught the children of canal workers in the 1930s with new computer suites, a more generous teaching area and group collaboration spaces. General Mills employees, meanwhile, donate their time to help with the boat s upkeep as well as on-board educational programs. Our work with the floating classroom isn t the only contribution that General Mills has made to help UK kids outside the traditional classroom. We ve also refitted two buses, dubbed The Point and The Transporter, to serve as mobile youth centres for children and teenagers in the London Borough of Hillingdon. The buses were equipped with record and CD mixing decks, kitchens for healthy eating classes, television and gaming platform spaces, and counselling areas. The buses have been successful in making contact with more than 10,000 young people a year. Volunteering for the environment In April 2011, employees from our Central and Eastern European headquarters in Hamburg, Germany, teamed up with a group of children to convert a field by the kids school into a thriving garden. The garden was planted with vegetables, herbs and flowers, which the students at Rebus Billstedt a school for children with special needs helped tend until harvest season in the fall. It s the third garden that General Mills volunteers have helped establish at elementary schools in the Hamburg area giving city kids a chance to get outdoors, work together, and learn about nature and how food is grown. Assisting at-risk youth In France, General Mills employees receive 35 paid hours per year they can use to volunteer in the community. With that time, they support organizations such as Apprentis d Auteuil, which helps at-risk young people learn a trade and integrate into society. Our employees have led courses on everything from cooking to English language skills to hip-hop plus we give the young adults a chance for their first work experience at our Häagen-Dazs shops. $28.2 million Our product donations in fiscal We partner with the Global FoodBanking Network, which operates in 22 countries and distributes nearly 3.5 billion pounds of food and grocery products annually. General Mills Europe corporate social Responsibility report 5

8 Communities: The people we serve Health Communities Environment Respecting, developing and investing in our people Around the world, General Mills has earned a reputation as a good place to work. We continue to see evidence that engaged employees drive customer value and business performance. Our senior leaders are focused on inspiring our 35,000 employees worldwide. In 2012, for the fifth year in a row, we were named one of the UK s Best Workplaces by the Great Place to Work Institute. We have also consistently been recognized as part of The Sunday Times Best Companies accredited list. The Great Place to Work Institute also recognized General Mills as one of the best workplaces in France and Greece. The Corporate Research Foundation ranked us a top employer in France as well, reflecting sound business policies and practices that seek to develop, recognize and support employees. In Spain, General Mills was recognized as an Empresa Familiarmente Responsible a family-friendly company by Fundacion Mas Familia, a nonprofit organization endorsed by the Ministry of Health, Social Policy and Equality. The certification recognizes policies that promote a flexible, supportive, non-discriminatory work environment. Leading business publications also ranked General Mills in several best of lists. Fortune included us in its list of best companies to work for (No. 58), most admired companies (No. 47) and top companies for leaders (No. 2), while Forbes named us one of the world s most innovative companies (No. 31). Encouraging employee wellness At General Mills, our commitment to Nourishing Lives extends to employees. That s why, for example, we ve implemented measures to ensure healthier meals in staff restaurants and vending outlets at our UK sites in Uxbridge and Berwick, including: Working with caterers to provide meals that are low in fat and salt, and do not contain artificial trans fats. Providing responsibly sized portions. Encouraging consumption of fruit and vegetables through availability and pricing. Best workplace In the UK, France and Greece, General Mills was named a top workplace by the Great Place to Work Institute. Operation bike to work From April through October 2011, several General Mills employees in Switzerland took up a challenge to reduce their carbon footprint by biking or walking to work rather than taking the car. Besides doing good for themselves and the planet, those who met the challenge s kilometre-based goal earned a Nature Valley bike jersey. For 2012, the program has expanded to include the option of taking mass transit to work plus exercising 30 minutes a day. 6 General Mills Europe corporate social Responsibility report

9 Environment: The planet we share Health Communities Environment We re continuing to work toward our fiscal 2015 goal of achieving significant, measurable reductions in solid waste generation, water usage, greenhouse gas emissions and other sustainability metrics. Working toward our sustainability goals We re more than halfway toward achieving three of our goals reducing water use, solid waste generation and packaging. And we re making progress on reducing energy usage, greenhouse gas emissions and transportation fuel. One area of improvement is a reduced packaging footprint. As of the end of fiscal 2011, 27 percent of our packaging volume has been improved. By upgrading its waste management procedures, Berwick has brought its waste sent to landfill down to zero. (We had expected to generate more than 300 tons in fiscal 2012.) Reaching zero landfill will save Berwick roughly 11,000 ($US17,400) per year in disposal costs. Our strategy for becoming a more sustainable company is driven by two movements in our company: ownership of all of our processes from plant production lines to our executive management team to eliminate and prevent waste. Holistic Margin Management, which calls on cross-functional teams to understand the drivers of value for our brands and to eliminate nonvalue-added costs throughout the supply chain. Our Berwick, UK, plant is an example of our commitment to sustainability. Continuous Improvement, which encourages total employee General Mills sustainability progress Sustainability metric Energy consumption rate A 6 percent reduction in our energy consumption rate, about one-third of the way to our 20 percent goal. Greenhouse gas emissions An 8 percent reduction in our greenhouse gas emission rate, which is just under halfway to our goal of a 20 percent reduction. Water usage* An 11 percent reduction in our water usage rate, halfway to our 20 percent goal. Our North American supply chain operation helped drive that reduction by reducing its water usage rate by almost 5 percent in one year. Solid waste generation A 34 percent reduction in our solid waste generation rate, two-thirds of the way to our 50 percent goal. Transportation fuel** A 15 percent reduction in the transportation fuel we use to ship a pound of product in North America, moving toward our goal of a 35 percent reduction. Packaging footprint** 27 percent of our packaging volume has been improved, more than halfway to our 40 percent goal. Rate reductions FY2005 FY2011 Rate reduction goals by FY2015 6% 8% 11% 34% 15% 27% 20% 20% 20% 50% 35% 40% * Measured from fiscal 2006 baseline data. ** Measured from fiscal 2009 baseline data. Wholly owned global manufacturing facilities Energy efficiency at Arras Our Häagen-Dazs plant in Arras, France, has energy efficiency built into its location: All suppliers are local, which results in fresher ingredients, fuel savings and a smaller carbon footprint. Conserving energy is a priority inside the facility as well. By optimizing its air conditioning system to improve temperature control, ventilation and humidity, for example, Arras saved 578 megawatt hours per year of gas and 824 megawatt hours per year of electricity. Switching to LED lighting in its cold storage area saved another 50 megawatt hours of electricity. Compared with fiscal 2010, in fiscal 2011 we: Reduced the amount of solid waste generated by about 7,000 metric tons. Cut water usage by roughly 560,000 cubic meters. Lowered greenhouse gas emissions by about 10,000 metric tons. Reduced our total energy use by more than 49 million kilowatt hours. General Mills Europe corporate social Responsibility report 7

10 Environment: The planet we share Reducing our fuel use From promoting good health to serving communities, our goal is continuous improvement. The progress we ve made in building an energy-efficient distribution system in Europe is an example of how we work to find a better way. Changing the product flow from our plants in Spain and France, for example, has enabled us to ship more efficiently and reduce road miles. By routing products through a warehouse in the port of Bilbao, Spain, we can consolidate our heavier canned Green Giant vegetables produced in France with lighter Nature Valley bars and Old El Paso Mexican meal kits made in Spain. Maximizing container space has enabled us to reduce our total number of containers shipped, plus cut 150,000 road miles by shipping more product directly to Ireland by sea. We ve already trimmed 2.3 million road miles per year from our European operation by shipping 90 percent of our UK-bound goods by sea. Those numbers have increased to 2.4 million and 95 percent in fiscal We re also consolidating truck loads more efficiently in Europe, leading to further fuel and cost savings. As with all our environmental schemes whether it be a sophisticated water reduction program at our Jus-Rol factory in Berwick or simply stacking product higher on pallets throughout our European operation we are committed to continually looking at new ways to make improvements, said Dave Howorth, Supply Chain Director, General Mills UK & Ireland. / Employees worldwide Think Global, Volunteer Local Volunteers from around the world took part in our third annual Think Global, Volunteer Local event celebrating Earth Day and volunteerism. More than 3,000 employees and retirees from 65 General Mills locations packed food for the hungry, cleaned beaches and city streets, and tackled other community projects. Volunteers in Athens replanted an area devastated by wildfire (left), and employees from the Green Giant facility in Seretram, France, planted 2,000 pine trees. Green-certified headquarters in France The new General Mills Benelux, France and Italy headquarters in Vélizy, France, is certified as a Haute Qualité Environnementale (High Quality Environment) a French standard for green building based on principles of sustainable development. The certification attests to the building s advanced eco-management, air quality, health facilities and other factors that conserve resources and create a healthy, stimulating environment for employees. 150,000 miles The road miles we re saving by packing sea-going containers more efficiently for transport to the UK and Ireland. 8 General Mills Europe corporate social Responsibility report

11 Health Communities Environment Minimizing our global footprint To conserve the natural resources our business depends on, we strive to reduce the impact that our operations have on the environment. Since 2008, for example, our plant in Seretram, France, has reduced its electricity usage rate by 12 percent, its water usage rate by 5 percent and its solid waste generation rate by 12 percent. We re also making improvements to our product packaging. Yoplait, for example, has replaced its non-recyclable sandstone containers with containers made from glass. The change has helped to eliminate about 1,500 tons of non-recyclable packaging. With help from several external organizations, General Mills also has developed a sustainable sourcing model for the ingredients we purchase. It includes asking our top suppliers to complete a supplier scorecard, which asks for data on energy use, greenhouse gas emissions, water use and solid waste generation that is associated with the ingredients or material we use to make our products. As part of our commitment to responsible sourcing, we re focusing on issues such as: Palm oil. To help ensure that our purchases are not associated with deforestation, and to reinforce the development of certified sustainable palm oil production practices, we re striving to source 100 percent of our palm oil from responsible, sustainable sources by Taking a phased approach, our Global Sourcing team is working to identify sustainable sources and encourage their development. Free-range eggs. In Europe, Häagen- Dazs our largest international business is working with local suppliers to increase the volume of eggs available from free-range hens. As a result, we now expect to source 100 percent free-range for all Häagen-Dazs products in Europe in 2013, while continuing to support local sourcing and local suppliers. To encourage the development of alternative production methods, General Mills also is buying 1 million cage-free eggs for its U.S. portfolio in The General Mills plant in San Adrian, Spain, sources 100 percent of its electricity from renewable sources. 100% We re striving to source 100 percent of our palm oil from responsible and sustainable sources by v Our sourcing director, Steve Peterson (with Pole), traveled to the Indonesian island of Sumatra in 2011 to examine sustainable palm oil sourcing practices. General Mills is committed to protect and conserve the natural resource base our business depends upon by continuously improving our environmental performance. We build consumer loyalty, societal trust and shareholder value by integrating sustainability into our strategies, our operations and our products. General Mills environmental sustainability mission statement General Mills Europe corporate social Responsibility report 9

12 Green Giant: Circle of Goodness Our Green Giant business illustrates how we bring our Nourishing Lives mission to life. Sustainability is built into every phase of this business from the growing of sweet corn to our energy-efficient processing plant to giving back to the community. 6 Nourishing communities Promoting sustainable agriculture Employees from our Green Giant plant in Seretram, France, volunteered their free time in 2011 to plant 2,000 pine trees in a local wood that had been hit by a devastating storm. Green Giant sweet corn is grown under a strict quality and environmental charter established by France s ARVALIS - Institut du Végétal. 1 5 Improving nutrition Green Giant has been proactive in promoting the importance of eating more fruits and vegetables,* and reducing sodium. Conserving resources Since 2008, our Green Giant plant in Seretram, France, has reduced its electricity usage rate by 12 percent, its water usage rate by 5 percent and its solid waste generation rate by 12 percent. 2 4 Maximizing efficiency We recently began shipping 95 percent of our UK-bound goods including Green Giant vegetables from France and Spain by sea, which has reduced 2.4 million road miles in bringing these products to market. Meeting environmental standards All of our European plants have earned environmental management ISO certification, meaning they have met an internationally recognized set of standards that are used to improve their environmental performance. 3 * The World Health Organization recommends consuming at least 400 grams of fruit and vegetables per day, equal to five 80-gram portions. For a comprehensive overview of our commitment to stand among the most socially responsible food companies in the world, see our full Global Responsibility report online at GeneralMills.com/Responsibility. Printed on PEFC paper General Mills General Mills U.K. Limited 1 George Street Uxbridge, Middlesex UB8 1QQ UNITED KINGDOM

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