Global RESPONSIBILITY 2019 - ResponsibilityReports.com
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Table of contents 1 Introduction 12 Our Food 22 Our Planet 1 Letter to stakeholders 13 Health and wellness 24 Climate change 2 Company overview 17 Food safety 32 Water stewardship 3 Highlights in 2018 19 Consumer education and marketing 34 Regenerative agriculture 4 Materiality 20 Transparency 39 Sustainable sourcing 8 Stakeholder engagement 46 Responsible sourcing 8 Public policy 10 Human rights 48 Our Workplace 56 Our Community 64 Appendix 49 Workplace safety 58 Increasing food security 64 Environmental data summary 50 Ethics and compliance 61 Advancing sustainable agriculture 66 Global Reporting Initiative index 51 Global inclusion 62 Strengthening hometown communities 71 United Nations Global Compact Principles 53 Employee engagement and development 72 Sustainability Accounting Standards Board (SASB) reference table ©2019 General Mills.
INTRODUCTION To our stakeholders: At General Mills, we know that food plays a we continue to increase transparency about This report describes General Mills’ strategies central role in people’s lives and has a profound our ingredients and how our food is made. and performance across four key areas: impact on the environment and communities Our Food, Our Planet, Our Workplace Feeding a growing global population depends worldwide. We believe that our company and Our Community. We have focused on on a healthy planet, so we are committed to can be a force for good. By using our global the topics that are most important to our treating the world with care. We continue taking scale and leadership, we work to create stakeholders and to our business. While we bold actions to advance sustainability, including value and make a difference for consumers, are proud of the progress we have made, driving progress toward our ambitious goals to workers, communities and the planet. hard work remains and we are motivated reduce greenhouse gas emissions by 28 percent by the opportunities that lie ahead. Jeffrey L. Harmening We face tremendous change in our industry, across our value chain by 2025 and sustainably Chairman, Chief with unprecedented social and environmental source our top 10 ingredients by 2020. We As always, we welcome your Executive Officer challenges. Navigating this landscape embrace our responsibility to help achieve questions and comments. General Mills requires transformation and innovation at a stable climate, healthy watersheds, strong Sincerely, every level, from how we source ingredients ecosystems and better lives for farmers. and make our products to how we engage Transforming our global food systems requires with consumers and other stakeholders. new levels of collaboration and transparency This transformation begins with understanding across our supply chain, and with businesses, consumer needs and delivering what they governments and nongovernmental Jeff want. Consumers increasingly demand food organizations. We support key global that reflects their values, from a company they efforts to advance the sustainability agenda, trust. We have greatly expanded our offerings including the United Nations Global Compact, in recent years to meet these expectations and which we have endorsed since 2008. We know that in order to deliver strong returns n S ustainably sourcing ingredients, protecting General Mills has been a public company for for our shareholders, we must successfully at-risk watersheds and advancing soil almost 90 years, and our shareholders rely on us serve all our stakeholders – our consumers, health help to protect input availability to provide strong, stable returns. Transforming customers, employees and communities. and ensure we can make the food our business model to be even more financially, At General Mills, we prioritize financial, people love far into the future. environmentally, and socially sustainable will help environmental and social performance as n R educing our natural resource usage us continue to deliver value for years to come. important measures of value and values. saves money while decreasing our Sincerely, This report describes initiatives that environmental footprint. In fiscal 2018 drive value in multifaceted ways: alone, our energy efficiency projects saved Donal L. Mulligan nearly $5 million while avoiding 6,000 Executive Vice President, n D elivering products that meet diverse Chief Financial Officer metric tons CO₂e of GHG emissions. consumer needs creates market opportunities. General Mills n B uilding a more sustainable business Don We reached more than $1 billion in net sales helps attract and retain the best from natural and organic products in the U.S. employees and supports the communities in fiscal 2018, up almost 50 percent since 2015. in which we do business. GRI 102-12, 14 GENERAL MILLS GLOBAL RESPONSIBILITY 01
Company overview Our purpose At General Mills, we serve the world by making food people love. We do this by embracing our five pursuits, which are at the heart of our company. Key metrics Net sales by segment, fiscal 2018* Carbon footprint, fiscal 2018 Total giving, fiscal 2018 (percentage of total) (percentage of total) (dollars in millions) n Agriculture and transformation 48% n North America Retail 64% n Packaging supply chain 7% n C orporate contributions US$33 n C onvenience Stores and n Producing 10% Foodservice 12% n F ood donations US$41 n Shipping 7% n E urope and Australia 13% n Foundation giving US$28 n Selling 5% nA sia and Latin America 11% Total: US$102 million n Consuming 21% Total: US$15.7 billion Total: 15.3 million metric tons CO2e *Does not include US$1.1 billion of net sales from joint ventures. Our brands General Mills produces and markets more than 100 consumer brands in more than 100 countries on six continents. NEW COLOUR LOGO ™ GRI 102-2 GENERAL MILLS GLOBAL RESPONSIBILITY 02
Highlights in 2018 At General Mills, we work to create holistic value throughout our supply chain, from agriculture and operations to our consumers and communities. Below are some highlights of our progress in fiscal 2018. 2018 highlights 85 percent 2nd largest 100 percent of facilities worldwide of our 10 priority U.S. natural and ingredients organic food audited and/or certified for food sustainably sourced producer safety by independent third parties US$102 million in 13 percent 49 percent corporate giving decrease of greenhouse gas emissions of professional across our value chain in 2018 compared positions held worldwide to 2010 by women globally 55,000+ acres US$4+ million 90 percent of our of pollinator habitat invested in soil health solid waste recycled or planted through 2018 initiatives through 2018 processed for recovery 81 percent of our U.S retail sales 83 percent 29 million of our employees meals enabled through volume nutritionally improved worldwide volunteered food donations around since 2005 in their communities the world GENERAL MILLS GLOBAL RESPONSIBILITY 03
Materiality* In 2018, we partnered with Hudson map and disclosure topics for stakeholders, most having a global with General Mills executives to validate Consulting to conduct an assessment the processed foods industry focus and representing a wide variety of and finalize the material issues list. to update our list of material global perspectives, including from academics, n T he Dow Jones Sustainability Our final list is included on the following responsibility issues, last done in 2015. consultants, customers, investors, Index’s (DJSI) scoring framework page, with a visual representation Input for this analysis included: nongovernmental organizations for food products of where each issue has the most and suppliers. Just over 30 internal n M aterial issues lists published impact across our value chain. n S takeholder and consumer research stakeholders responded, representing all by several industry peers GRI 102-46, 47 Based on the input, we created and regions and a wide range of functions n I nput from General Mills global distributed a materiality assessment and areas of expertise. responsibility experts and executives survey to stakeholders to determine the Using this stakeholder input, we n T he Sustainability Accounting relative importance of each issue. We developed a draft matrix and worked Standards Board’s (SASB) materiality received 30 responses from external Materiality assessment process Materiality matrix General Mills External Other stakeholder Importance for General Mills to address Results of 2015 executives disclosure and consumer Industry peers assessment and experts frameworks research HIGHER (input from external stakeholders) PRIORITY material issues List of issues for materiality assessment OTHER material issues External Internal survey survey HIGHER Impact on General Mills (input from internal stakeholders) *In this report, the terms “material” and “materiality” refer to topics that reflect General Mills’ significant environmental and social impacts or that substantially influence our global responsibility strategy. We are not using these terms as they have been defined by securities laws in the United States or in the context of financial statements and financial reporting. GENERAL MILLS GLOBAL RESPONSIBILITY 04
TRANSFORMING AGRICULTURE CONSUMING PRODUCING PACKAGING SHIPPING SELLING Material issues This table summarizes the issues that are most material to our global responsibility strategy, including several priority issues ranked highest by our stakeholders. We include information about our approach to and progress on these issues throughout this report and in the Global Reporting Initiative (GRI) index. CIRCLES NOTE VALUE CHAIN PHASES FOR EACH RELEVANT ISSUE Climate change Advance programs to reduce greenhouse gas emissions and help mitigate the effects of climate change throughout the value chain. Sub-issues: adaptation and resilience; climate policy advocacy; mitigation Commodity availability Maintain reliable access to key commodities and inputs. Sub-issues: political disruption; severe weather; water-stressed areas PRIORITY MATERIAL ISSUES Corporate governance Operate with integrity and the highest standards of oversight, ethics and compliance. Sub-issues: anti-corruption; ethics and compliance; and ethics grievance processes; privacy and data protection Diverse consumer needs Diversify our product offerings and meet changing consumer preferences. Sub-issues: dietary needs; preferred agricultural practices; preferred ingredients Food safety Set and maintain the highest standards for food safety and quality. Sub-issues: audits; certification; recalls; training Health and nutrition Improve the variety and nutritional profile of our products and engage in public discussions on nutritious lifestyles. Sub-issues: increasing beneficial nutrients and food groups; decreasing nutrients to limit; nutrient-dense foods Human rights Protect and respect human rights throughout the value chain. Sub-issues: child labor; discrimination; fair compensation; forced labor; freedom of association and collective bargaining; gender equality; human trafficking; land rights; safe and healthy working conditions; working hours Responsible sourcing Improve social, environmental and economic impacts of raw material sourcing. Sub-issues: integrated pest management; organic/regenerative farming; risk assessments and audits; soil health; supplier diversity; supplier responsibility; traceability Water stewardship Reduce water use and ensure appropriate water management throughout the value chain, especially in water-stressed areas. Sub-issues: water use in agriculture; water use in packaging Animal welfare Ensure the humane treatment of animals throughout the supply chain. Sub-issues: animal testing; antibiotic use; the “five freedoms” Biodiversity Conserve a variety of plant and animal species through sustainable sourcing practices. Sub-issues: agricultural practices; forestry practices; vulnerable species Biotechnology Ensure responsible use of biotechnology tools and techniques in agricultural practices and food production. Sub-issues: consumer transparency; disclosure requirements; technologies (CRISPR, gene editing, genetically modified organisms) Deforestation Advance strategies to reduce tree clearing and associated environmental impacts. Sub-issues: biodiversity; climate change; endangered species; high-risk supply chains (cocoa, fiber, palm oil) Diversity and inclusion Foster a diverse and inclusive workplace. Sub-issues: board of directors diversity; equal opportunity/nondiscrimination; gender equality; workforce diversity (beliefs, cultural values, gender, perspectives, race, sexual orientation) OTHER MATERIAL ISSUES Employee health, Maintain a safe workplace for our employees, contractors and visitors, and help employees lead healthier lives. Sub-issues: accident, injury and safety and well-being illness prevention; physical and emotional wellness; work/life balance Employee recruitment Provide competitive pay and benefits, and invest in training and development opportunities. Sub-issues: compensation and benefits; employee and development engagement; employee recruitment and retention; training and development Energy use Reduce energy use and costs throughout the value chain. Sub-issues: energy efficiency; renewable energy use; total energy use Farmer livelihoods Support farmers’ capabilities and capacity to maintain viable operations. Sub-issues: economic empowerment for smallholder and women farmers; farm worker safety Food security Improve access to healthy, affordable food for the world’s growing population. Sub-issues: donations; food access and equity; food banks; food deserts; school meal programs Food waste Reduce food waste and loss from field to fork and beyond. Sub-issues: food rescue/recovery; packaging design to reduce food waste; product labeling Packaging footprint Reduce the environmental impact of packaging. Sub-issues: amount of materials used; lower-impact materials; materials selection (fiber, glass, metal, plastic); ocean plastic; packaging fees/bans; recyclability Public policy and Engage with policymakers to advance the interests of General Mills and its stakeholders, maintain the company’s license to operate, and engagement drive social and environmental improvement. Sub-issues: lobbying; policy advocacy; political contributions Responsible marketing Maintain the highest standards for marketing and advertising, including through adherence to internal and industry guidelines. Sub-issues: commitments and policies; marketing to children; nutrition and ingredient labeling Transparency Communicate openly with stakeholders about our products and business practices. Sub-issues: employment practices; ingredients; labeling; online access to information; supplier relationships/accountability GRI 102-46, 47 GENERAL MILLS GLOBAL RESPONSIBILITY 05
Priority issues: Goals and performance Progress Issue Commitment/Goal 2016 2017 2018 Food safety Ensure all facilities worldwide are audited and/or certified by independent third parties using globally recognized food safety criteria 100% 100% 100% (% of facilities) Achieve Global Food Safety Initiative certification of all General Mills owned facilities by 2020 (% of facilities) 80% 82% 84% Health and nutrition Continue to improve the health profile of U.S. retail products* (%) 79% 80% 81% Our food Comply with global industry front-of-pack calorie labeling Ongoing (see page 19) Diverse consumer Continue to expand product offerings to meet consumer needs and preferences needs n New product launches in the U.S. (number of SKUs) 235 310 265 n Gluten-free retail products in North America (number of products) 1,000 920 900 n Protein-rich retail products in the U.S. (number of products) 230 250 190 n Lower-calorie retail products in North America (number of products) 1,300 1,300 1,250 Reach US$1 billion in net sales from natural and organic products in the U.S. by 2019 (US$ million) $750 $1,045 $1,058 Climate change Reduce absolute GHG emissions across our full value chain by 28 percent by 2025 and 41-72 percent by 2050 (compared to 2010) N/A -11% -13% (% change compared to 2010) Reduce energy use by 2 percent annually** (% change) 0% 3% -2% Reduce production solid waste generation by 3 percent annually** (% change) 21% 11% 7% Achieve zero waste to landfill at 30 percent of our owned production facilities by 2020 and 100 percent by 2025*** (%) 12% 14% 20% Water stewardship Champion the activation of water stewardship plans for the company’s most material and at-risk watersheds in its global value Ongoing (see pages 32-33) chain by 2025 Reduce water use by 1 percent annually** (% change) 10% -5% -4% Our planet Responsible sourcing Sustainably source 100 percent of our 10 priority ingredients by 2020 (%) 69% 76% 85% Cocoa (%) 46% 59% 90% Vanilla (%) 22% 22% 32% Oats (%) 50% 61% 90% U.S. wheat (%) 36% 61% 74% U.S. sugar beets (%) 68% 81% 81% U.S. corn (dry milled) (%) 33% 67% 82% U.S dairy (raw fluid milk) (%) 38% 83% 91% Fiber packaging (%) 99% 99% 99.5% Sugarcane (%) 67% 58% 70% Palm oil (%) 100% 100% 100% * Represents percentage of U.S. retail sales volume that has reduced calories, fat, saturated fat, trans fat, sugar or sodium by at least 5 percent per serving or increased beneficial nutrients (including vitamins, minerals and fiber) by at least 10 percent per serving, compared to fiscal 2005. ** Applies to all General Mills owned production facilities. Normalized to production. *** These facilities sent no waste to landfill or incineration without energy recovery. Data includes facilities that were operating at the end of each fiscal year. GENERAL MILLS GLOBAL RESPONSIBILITY 06
United Nations Sustainable Development Goals General Mills supports the United Nations (UN) Sustainable Development Goals (SDGs), a set of 17 broad goals and 169 more specific targets to drive the 2030 Agenda for Sustainable Development globally. We focus on the goals that most closely align with the company’s priority issues and areas of long-standing commitment, investment and progress. MATERIAL ISSUES n F ood security n D iverse consumer needs n W ater stewardship n C limate change n C limate change n B iodiversity n F ood waste n F ood safety Learn more. n F ood waste n C ommodity availability n D eforestation n H ealth and nutrition n H ealth and nutrition Learn more. n E nergy use n R esponsible sourcing Learn more. Learn more. n P ackaging footprint Learn more. Learn more. Also refer to our GRI index for a mapping to SDGs. Oversight The General Mills leadership team The Chief Executive Officer also SUSTAINABILITY has ultimate accountability for the convenes the Sustainability Governance GOVERNANCE COMMITTEE BOARD OF DIRECTORS’, CEO, CHAIRMAN PUBLIC RESPONSIBILITY CEO, CHAIRMAN OF THE BOARD company’s global responsibility Committee three times per year. The OF THE BOARD COMMITTEE programs and performance. The team role of the Committee is to approve CHIEF SUPPLY CHAIN AND GLOBAL BUSINESS includes Jeff Harmening, Chairman and monitor strategy, policy and key SOLUTIONS OFFICER CHIEF INNOVATION, and Chief Executive Officer; John investments related to sustainability. TECHNOLOGY AND QUALITY OFFICER Church, Chief Supply Chain and CHIEF SUPPLY CHAIN CHIEF INNOVATION, CHIEF HUMAN Additional details about leadership CHIEF MARKETING AND GLOBAL BUSINESS TECHNOLOGY AND RESOURCES OFFICER OFFICER Global Business Solutions Officer; Jodi SOLUTIONS OFFICER QUALITY OFFICER and governance related to specific Benson, Chief Innovation, Technology global responsibility issues are included and Quality Officer; and Jacqueline in relevant sections of this report. Williams-Roll, Chief Human Resources GLOBAL RESPONSIBILITY GLOBAL HEALTH AND GENERAL MILLS WORKPLACE FOCUS AREAS SUSTAINABILITY NUTRITION FOUNDATION Officer. The team meets regularly See Corporate Governance to learn and receives input from internal and more about the company’s broader r This graphic outlines governance and management of external experts. The Board of Directors’ corporate governance structures global responsibility focus areas at General Mills. Public Responsibility Committee and processes, including its Public provides oversight and receives regular Responsibility Committee. updates from the operating teams. GRI 102-19, 20, 26, 32 GENERAL MILLS GLOBAL RESPONSIBILITY 07
rs Cust plie om ers Sup Stakeholder engagement n A nimal welfare n I ndustry n H uman rights partnerships At General Mills, we engage with to shape standards across the consumer n P roductinnovation R egenerative ns n tio stakeholders to accelerate progress packaged goods industry, which agriculture n S ustainability Co cia n S ustainable collaboration ns on social and environmental initiatives. elevates overall sector performance. so sourcing um as ers ry Our approach includes open dialogue, n F ood safety n C onsumer feedback/ We engage on issues that are material ust n P ublic policy concerns collaboration and transparent Ind n E ducationand to our global responsibility strategy n R egenerative agriculture responsible marketing disclosure. This strengthens our ability n S ustainable sourcing and where we can have a substantial n P roductneeds to balance business and societal and preferences positive impact. When engaging with interests; build robust relationships stakeholders, we assess potential globally across sectors; and ultimately, n P ollinators and n D iversity and inclusion alignment on objectives, organizational biodiversity n E mployee satisfaction identify innovative solutions that n S oil health n E mployee well-being expertise, capacity, influence and loyees n W ater stewardship T raining and NGOs create shared, sustainable value. n willingness to collaborate. development Emp We are working to address shared issues – GRI 102-40, 42, 43, 44 such as health and nutrition, climate change and water stewardship – so n D isaster relief n F inancial performance n E mployee volunteerism n G overnance collaboration is essential to achieving n F ood security n R eporting Regenerative long-term, enduring progress. We work n agriculture n B iotechnology n C limate change with other companies and organizations n F ood waste m C s o This graphic un m n P ackaging or st it i es n R esponsible nve illustrates the marketing I range of issues on which we engage Regulators and public policymakers with stakeholders. w Public policy At General Mills, we engage in public public policy discussions to advance for the U.S. to remain in the Paris support for the National Organic policy issues that are important to environmental priorities, including: Climate Accord; support the U.S. Standards Board (NOSB) and our company and stakeholders. Environmental Protection Agency’s the Organic Agriculture Research w Leading on regenerative and (EPA) Clean Power Plan; and are and Extension Initiative (OREI). We are committed to conducting sustainable agriculture – General members of Business for Innovative these activities in an accountable and Mills is a leading voice on w Advancing water stewardship Climate and Energy Policy (BICEP). transparent manner. In 2018, we led a regenerative agriculture. We – We engage policymakers to See a list of our public actions here. landmark, transparent enhancement encourage collaboration and drive more sustainable water into our approach and priorities by investment by governments and the w Supporting stronger organic practices in key watersheds, launching Public Engagement for the private sector, such as our support standards – We’re proud of our long like California. Learn more. Greater Good. This extensive site details for the Regional Conservation history of engagement in developing w Addressing packaging and food our public policy engagement and Partnership Program (RCPP). strong U.S. organic standards, and waste – General Mills promotes highlights our focus in five key areas: have fought to promote and protect w Combating climate change – We policies to effectively and efficiently the integrity of the standards n P rotecting and preserving our support a comprehensive, national increase packaging recycling and advance their continuous planet: We actively engage in climate policy; have publicly called rates and reduce waste. In the improvement. Learn about our GENERAL MILLS GLOBAL RESPONSIBILITY 08
United States, we are a leader in Hunger Center and are proud to Political contributions the Minnesota Chamber of Commerce AMERIPEN – the American Institute have received the 2018 Corporate and the California Manufacturers and memberships for Packaging and the Environment Partner Hunger Leadership & Technology Association. – and are actively engaged in Award. We also work with several Our civic policy describes our approval We report additional details about multiple, multi-sector and industry initiatives to advance public process for corporate political our largest U.S. trade association coalitions aimed at reducing and policy at the state level that contributions. The Public Responsibility memberships annually in our civic ending food waste and loss. would increase food security. Committee of the Board of Directors involvement reports. We do not belong oversees the company’s political n D elivering nutrition: We actively w Protecting people – We advocate activities, including our policy, disclosure to, or make payments to, any tax-exempt engage in public policy discussions for inclusive public policies organizations in the United States that of corporate political contributions, to advance nutrition priorities and add our voice to help lead write and endorse model legislation. membership in major trade associations consistent with those outlined in our change, including for inclusive U.S. and independent political expenditures Accountability: In 2018, the Center for U.S. Health Metric, including support immigration and LGBT policies. (although the company has not made Political Accountability rated General for strong Dietary Guidelines for w Strengthening our communities – In any). During 2018, we made US$2,500 in Mills in the top five of the CPA-Zicklin Americans; the U.S. Food and Drug addition to our philanthropic support direct political contributions. For more Index of Corporate Political Disclosure Administration’s efforts to reflect the for our hometown communities, we details and historical information, see our and Accountability, and the top newest scientific information on the also develop important community 2005-2018 Civic involvement reports. food company. This ranking, which definition of “healthy”; strong U.S. partnerships that drive economic includes all companies in the Standard school nutrition standards; and the The General Mills Political Action growth and increase connectiveness. & Poor’s 500 index, maintained our Supplemental Nutrition Program for Committee (G-PAC) is run by employees performance from past years. n I nforming consumers and increasing and uses employee funds to make Women, Infants and Children (WIC). awareness: We actively support political contributions to federal and, GRI 415-1 n E nsuring safe food: We actively public policy efforts to inform in limited cases, state candidates. No engage in public policy discussions to our consumers and increase their corporate treasury funds are used for ensure safe food. We strongly support the Food Safety Modernization Act awareness about our products. For federal candidate contributions, but as Top 5 example, we are active members of allowed by law, the company pays G-PAC (FSMA) – the largest revamp of CPA-Zicklin Index several organizations that provided administration costs. Information regarding U.S. food safety laws in decades – comments to the U.S. Department of G-PAC transactions is available on the of Corporate Political and its goal of raising food safety Agriculture (USDA) requesting that Federal Election Commission’s website. Disclosure and standards across the food value more information about bioengineered Accountability chain. We supported the originating General Mills also advances its mission ingredients be made available to legislation for FSMA and the by partnering with trade associations consumers, not less. (See one example regulations for its implementation, and other independent organizations here.) Learn more about initiatives and have consistently called on that share our goals, including: to increase transparency in the Congress to continue adequate n I nternational organizations, such Our Food section of this report. funding for FSMA implementation. as EuroGlaces and the Brazilian Compliance: We comply with all n I ncreasing food security and Association of Food Industries. lobbying regulations where applicable. strengthening communities: n U .S. public policy focused General Mills is registered as a lobbying We actively engage in public organizations, such as the Grocery entity at the federal level for the U.S. policy discussions in this area, Manufacturers Association and the House of Representatives and U.S. including the following actions: American Bakers Association. Senate and in the states of Minnesota w Increasing food security – At the and California. We file regular reports n S tate or provincial agencies, federal level, we are a longtime on our lobbying activity (see links). local chambers of commerce and supporter of The Congressional GRI 102-12, 13, 44 manufacturing organizations, such as GENERAL MILLS GLOBAL RESPONSIBILITY 09
Human rights We believe that societies, economies chain, we are committed to treating Standards and Ethical Sourcing Policy, n S upport for the Consumer Goods and businesses thrive when human people with dignity and respect. our Employee Code of Conduct and Forum’s Forced Labour Resolution rights are protected. Respect for human our Supplier Code of Conduct and Priority Industry Principles To inform our approach in this rights is fundamental to our purpose area, we look to the UN Guiding n U se of the Sedex Members Ethical of serving the world by making food Governance Principles on Business and Trade Audit (SMETA) protocol people love and to our commitment The Public Responsibility Committee Human Rights, the UN Universal n E ndorsement of the UN to ethical business conduct. of the General Mills Board of Directors Declaration of Human Rights, and the Global Compact International Labour Organization’s oversees our work in this area. Our approach n S ignatory to the UN Women’s 1998 Declaration on Fundamental Operational accountability rests with Our Policy on Human Rights outlines Principles and Rights at Work. Empowerment Principles Chief Supply Chain Officer, supported our approach. We respect and n M embership in AIM-PROGRESS, The following also underpin our by members of the members of acknowledge internationally recognized a forum of consumer goods commitment to human rights: the leadership team including the human rights principles. Within our manufacturers focused on Chief Executive Officer and heads company and throughout our supply n G eneral Mills’ Slavery and Human responsible sourcing of Legal and Human Resources. Trafficking Statement, our Workplace Supporting human rights across our value chain We work within a large, diverse value chain of partners and stakeholders. Each has a duty to respect human rights. General Mills expects our partners to adhere to ethical business conduct consistent with our own standards. Farmers Suppliers Employees Communities We work directly with smallholder farmers Our supplier base is large, complex and We are committed to maintaining a We are committed to providing safe from whom we source ingredients global. We address human rights through respectful, safe, secure and harassment- and healthy food, and we collaborate to help strengthen their farming a multifaceted approach, including free workplace, demonstrating fair labor to improve food access and security practices and their livelihoods, ensure supplier assessments, audits and direct practices and fostering a culture of for the world’s growing population. See safe and healthy working conditions engagement. Our Supplier Code of diversity and inclusion. See Our Workplace Increasing food security for more detail. and promote economic stability. See Conduct is the backbone of our program. for more detail. Sustainable sourcing for more detail. See Supplier responsibility for more detail. GRI 407-1, 408-1, 409-1 GENERAL MILLS GLOBAL RESPONSIBILITY 10
About this report The General Mills Global Responsibility n U nless otherwise noted, data in this Feedback Report describes our commitments, report is not externally verified and We welcome your comments about goals, programs and performance may occasionally be restated due this report. Please send any feedback across a broad range of issues. The to improvements in data collection to Corporate.Response@genmills.com. company’s Global Sustainability methodology and/or accuracy. GRI 102-49, 50, 53, 54, 56 team has responsibility for the development of the report. Ultimate Stakeholder input accountability lies with the General For the last several years, General Mills Mills leadership team (see page 7). has engaged Ceres – a coalition of investors, environmental organizations The report is structured to explicitly and other public interest groups working align with the company’s material with companies to advance their global responsibility issues. environmental and social performance The Global Responsibility Report is and disclosure – to provide input on our an important part of a broader set of annual Global Responsibility Report. disclosures that provide stakeholders This year, nine stakeholders, including a multifaceted description of General investors, NGO representatives, Mills’ performance, including the corporate practitioners and industry company’s annual report, SEC filings experts, provided feedback on a and annual proxy statement. detailed report outline. We value this input and have incorporated much Report scope of their feedback into the report. n T he scope covers the company’s global operations in fiscal 2018 Reporting standards (52 weeks ended May 27, 2018), n T his report references the GRI 2016 except where noted otherwise. Sustainability Reporting Standards, n E nvironmental data related to as well as the Food Processing Sector General Mills’ production facilities Supplement. See the GRI index presented in this report and in for details. the Environmental Data Summary n T his report references the Sustainability is reported on a May-April basis Accounting Standards Board’s (through April of the year noted). (SASB) Processed Foods Standard. n T his report does not include data See the SASB index for details. from Blue Buffalo Pet Products, which n G eneral Mills endorsed the principles of General Mills acquired in April 2018. the UN Global Compact in 2008. This n O ur Scope 1, Scope 2 and a portion of report serves as the company’s annual our Scope 3 greenhouse gas emissions Communication on Progress. See the have been verified by Bureau Veritas. UN Global Compact index for details. GENERAL MILLS GLOBAL RESPONSIBILITY 11
Our Food At General Mills, our purpose is to serve the world by making food people love. IN THIS SECTION Consumer education Health and wellness Food safety Transparency and marketing 81% 100% 2nd In fiscal 2018, 100 percent of our General Mills 81 percent of U.S. facilities worldwide is now the Retail sales volume are audited and/or second-largest met our Health Metric certified by independent U.S. natural and nutritional criteria. third parties using organic food globally recognized producer. food safety criteria. GENERAL MILLS GLOBAL RESPONSIBILITY 12
Our Food Our Planet Our Workplace Our Community Health and wellness Nutrition u Material issue | GRI 416-1, FP4, 6, 7 Our approach and growth for General Mills. The and safety, and product labeling. Health and Wellness Advisory Council: Bell Institute influences General Mills’ Responsibility for marketing Since 1989, we have benefited from Our goal: Our goal is to provide a diverse product development through: communications is held by the the guidance of our global Health and portfolio of products that can contribute n N utrition science research Chief Marketing Officer. The Bell Institute Wellness Advisory Council, a group of to the well-being of consumers and of Health and Nutrition reports directly leading external health and nutrition meet their various needs, including n I nsights on regulatory matters to the Chief Innovation, Technology and experts who provide perspective from nutrition. We are committed to making n H ealth communications to customers, Quality Officer and regularly updates academia and research institutes. The food with passion and putting people nutrition communities and consumers the Public Responsibility Committee council meets regularly and challenges first by improving the variety and health n R ecommendations for product of the Board of Directors on the us to continually advance health and profile of our products while adhering innovation and reformulation company’s health and wellness strategy. wellness strategies and practices. to high standards of food safety. Learn more on the Bell Institute website. Investment in research: We invest CEO, CHAIRMAN in research and development (R&D) OF THE BOARD to continuously improve the health profile of our products and help us better understand the impact Leadership and governance: CHIEF INNOVATION, of food on health and wellness. CHIEF TECHNOLOGY AND HEALTH AND WELLNESS Operationally, responsibility for MARKETING OFFICER QUALITY OFFICER ADVISORY COUNCIL Bell Institute of Health and Nutrition: product development and marketing General Mills’ global Bell Institute of lies within the R&D and marketing Health and Nutrition is the company’s organizations. The Chief Innovation, PRODUCT FOOD BELL INSTITUTE source for scientific health and Technology and Quality Officer MARKETING AND SAFETY AND RESEARCH AND OF HEALTH AND DEVELOPMENT COMMUNICATIONS QUALITY NUTRITION nutrition expertise that creates value is responsible for product health Nutrient-dense foods At General Mills, we provide a diverse and granola bars containing whole grain and/ Cheerios, Fiber One and Lucky Charms are portfolio of products, including many or fiber, plays an important role in healthy examples of nutrient-dense cereals that nutrient-dense foods, which can help diets. They are important contributors to provide beneficial nutrients, such as key consumers meet dietary recommendations consumption of key food groups, including vitamins and minerals, whole grain and fiber. and fit into a healthy eating pattern. whole grains and dairy, and beneficial Low-fat and nonfat yogurts, like Yoplait nutrients like vitamins, minerals, protein and/ Original Style Yogurt, Go-GURT, Yoplait Light, While we traditionally report our progress as or fiber, while balancing nutrients to limit. Greek 100, YQ and Petits Filous yogurt are also increasing certain beneficial nutrients and Focusing on nutrient density helps tell the nutrient-dense choices. They are important reducing others, we also recognize that few whole story about the nutritional value of sources of essential nutrients, such as protein, foods are composed of a single nutrient. a food – beyond what has been increased calcium, and often vitamins A and D. Consumption of nutrient-dense foods, like or reduced – to help support consumers fortified cereals, low-fat and nonfat yogurts in adopting healthy dietary patterns. GENERAL MILLS GLOBAL RESPONSIBILITY 13
Our Food Our Planet Our Workplace Our Community Global nutritional improvements In 2005, General Mills began the journey toward improving the nutrition of our products with the implementation of our U.S. Health Metric. Over the past several years, we have expanded our efforts, applying similar criteria to encourage nutritional improvements globally. Here are some highlights of nutritional improvements worldwide since 2005 (fiscal 2005-2018 results). Global nutritional improvements since 2005 Increased beneficial nutrients and food groups Reduced nutrients to limit NUTRIENTS AND IMPACT* KEY CATEGORIES NUTRIENTS IMPACT*** KEY CATEGORIES FOOD GROUPS 300+ Provide at least 8 grams of cereal and savory snacks, frozen pizza, new products whole grain per serving snacks Reduced sodium canned vegetables, baking mixes, Whole grain 480+ products by 5 to 25% dry dinners, refrigerated dough, Sodium side dishes, soups and cereal 300+ Provide a significant source of cereal and new products dietary fiber per serving** snacks Fiber Reduced sugar 370+ products yogurt, snacks and cereal by 5-30% yogurt, cereal, Sugar 600+ Provide sources of key snacks, and fruit Vitamins and new products vitamins and minerals** and vegetable minerals products Reduced trans fat Provide at least 10% of the baking mixes, refrigerated dough 270+ products to 0 grams labeled 165+ recommended daily value of yogurt and and pizza products new products protein per serving (or are a snacks Trans fat per serving Protein source of protein)** *New products introduced FY05-FY18 containing beneficial nutrients and food groups at specified levels. **As defined per region. ***Existing products reformulated FY05-FY18 to reduce targeted nutrients at specified levels. Cereal Partners reformulating its global product portfolio Goal: By 2020, all CPW cereals to increase ingredients and nutrients that containing a green banner will be Worldwide are important to a balanced diet – such made of whole grain*** and free Our Cereal Partners Worldwide (CPW) as whole grain and fiber – and reduce of artificial colors and flavors. joint venture with Nestlé makes and ingredients like sugar and sodium. **Scope: All active recipes under Nestlé brand; markets cereals globally outside North % capture increase/decrease since the launch Progress: Since 2003, CPW has of each recipe; and based on 2018 volume. America. CPW is committed to making ***At least 8g of whole grain per serving. achieved 23 percent less sugar, 31 breakfast better by providing nutritious, Excludes: 1. Products where technology does percent less sodium, 58 percent more not allow the addition of whole grain; tasty and convenient breakfast cereals. 2. General Mills imported products. whole grain and 48 percent more r A few of the General Mills products introduced For more than a decade, CPW has been globally in fiscal 2018 meeting Health Metric criteria. fiber in their product portfolio.** GENERAL MILLS GLOBAL RESPONSIBILITY 14
Our Food Our Planet Our Workplace Our Community Spotlight: U.S. Health Metric Since its inception in 2005, more than 1,500 products have been included in the U.S. Retail Health Metric. In fiscal 2018, 81 percent of our U.S. Retail sales volume met Health Metric criteria. U.S. Retail Health Metric achievement U.S. Health Metric criteria: or at least a half-serving of fruit, FY05-FY18 vegetables, or low or nonfat dairy. n R educe calories, fat, saturated More than 1,500 products included in FY05-FY18 fat, trans fat, sugar or sodium by n F ormulate/reformulate products to 5 percent or more per serving. meet specific internal requirements, 76% 77% 79% 80% 81% n I ncrease beneficial nutrients – including including limiting calories, and 73% 68% vitamins, minerals and fiber – by meeting health or nutrition claim 64% 60% 10 percent or more per serving. criteria as defined by the U.S. Food and Drug Administration (FDA). 45% n F ormulate/reformulate products 40% to include 8 grams of whole grain 33% 21% 16% Spotlight: Nutritional impacts across our North American portfolio* FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Fiber Whole grain Drivers of nutritional improvements n 1 9 percent of our North American product n A t breakfast, Big G cereals are U.S. Retail sales volume FY05-FY18* SKUs (300+ products) contain at least 10 the No. 1 source of whole grain percent of the recommended daily value of for Americans. fiber per serving. Examples include Fiber n 2 0 percent of our North American One Snack Bars and ready-to-eat cereals. product SKUs (550+ products) contain at least 8 grams of whole Protein grain per serving. Examples include FY2018 U.S. Retail Health Metric volume: ready-to-eat cereals and grain-based n 1 1 percent of our U.S. retail product SKUs snack bars. 16% 46% 38% (190+ products) provide at least 10 percent of the daily value of protein per serving. Products with increase Products with Products with n 2 9 percent of our Canadian retail Calcium in beneficial nutrients both increase in decrease in beneficial nutrients nutrients to limit product SKUs (165 products) are a n 2 4 percent of our U.S. retail product n Whole grain n Fiber AND decrease in n Sodium n Saturated fat source of protein. SKUs (300+ products) provide at n Vitamins/minerals nutrients to limit n Sugar n Total fat least 10 percent of the recommended n Protein n Trans fat Cal Calories daily value of calcium per serving. n 4 5 percent of our Canadian retail n 6 2 percent of our North American product SKUs (200+ products) are a product SKUs (1,250+ products) source of calcium. Examples include have 150 calories or less per serving. yogurt products, fortified cereals and n 3 0 percent of our North American Annie’s Macaroni & Cheese products. *The information on this diagram shows efforts we have made to improve the nutrition profile of our products. product SKUs (700+ products) have Divested products are not included. 100 calories or less per serving. *Status as of FY18; includes current products meeting specified criteria. GENERAL MILLS GLOBAL RESPONSIBILITY 15
Our Food Our Planet Our Workplace Our Community Diverse consumer needs u Material issue Our approach: At General Mills, diverse the way people eat and interact with approach to health and wellness. dairy alternatives, nutrition-driven and evolving consumer needs are at the our brands. Three key consumer-driven Wellness incorporates everything granola and probiotic drinks. center of our business. We include the trends that are influencing important from physical health to whole body voice of our consumers in every decision initiatives at General Mills include health, including mental health aspects. Changing demographic we make by understanding their needs, responsible living, wellness and balance, Food options across this wellness landscape motivations, values and behaviors. We and changing demographic landscapes. continuum increasingly are available Shifts in population demographics and consistently monitor key trends and in a variety of food categories, such consumer attitudes result in changing macro forces that can drive change in Responsible living as snacks and yogurt. For example: preferences and needs. For example, half The combination of an intensifying of General Mills consumers are multi- n G eneral Mills products recently TREND | COMPASS pull on natural resources and greater launched include YQ by Yoplait, cultural or 55+ years old. Multicultural awareness of social issues is leading to families and Baby Boomers, who are which delivers an excellent source of more personal consumer action. People becoming empty nesters and moving protein with less sugar, and Oui by increasingly are mindful of factors greater into retirement, increasingly are looking Yoplait French-style yogurt focused than themselves – others, animal welfare for products that fit their varied lives. on simple, everyday pleasure. and the environment – in their decision- For example, Betty Crocker Mug Treats n G eneral Mills is the fourth-largest making. For example, General Mills offer single-serving options for smaller producer of gluten-free products natural and organic brands, like Annie’s, households, while innovations such as in the U.S.* One in five of our Epic, Cascadian Farm and Muir Glen, Cinnamon Toast Crunch Churros Cereal North American products is continue to fully integrate sustainability have multicultural consumers in mind. labeled as gluten-free. In 2018, we as a standard operating principle. In 250+ offered more than 900 gluten-free April 2018, we acquired Blue Buffalo, a product SKUs in North America. mission-driven natural pet food business. n 3 01 INC, General Mills’ business Wellness and balance development and venture capital In fiscal 2018, we introduced r General Mills constantly monitors key food trends, including the items highlighted As access to information grows, people unit, invests in products that more than 250 new products in this trend compass. are taking a more proactive and holistic deliver options like plant-based in the U.S. to meet diverse *Nielsen xAOC; 52 weeks ending Dec. 29, 2018. consumer needs. Investing in food innovations Our approach: Today’s fast-changing food with promising early-stage brands and also Our progress: We continue to grow our Partners: As of November 2018, we have 10 partners: industry requires rapid innovation and a steady helps make their food products accessible portfolio and support for entrepreneurial stream of new ideas. In 2015, General Mills to more people. By combining the vision brands. In fiscal 2018, we: began to invest in small food start-ups through and passion of these entrepreneurs n A dded Urban Remedy and GoodBelly 301 INC, the company’s business development with General Mills’ extensive capabilities Probiotics, two high growth potential and venture capital unit. The 301 INC team in areas such as product development, companies, to our portfolio. helps expand the vision of entrepreneurs supply chain, marketing, operations and channel development, we believe we can n H eavily reinvested in dairy-free yogurt meet consumer needs faster than ever. maker Kite Hill to help meet consumer demand for more plant-based options. GENERAL MILLS GLOBAL RESPONSIBILITY 16
Our Food Our Planet Our Workplace Our Community Natural and organic brands Since 2000, we have steadily expanded with organic ingredients; approximately our natural and organic business, including through brand acquisitions, to 370 organic product SKUs are available throughout the U.S. and Canada. Our natural and organic brands meet growing consumer demand. We n G rowth – We committed to growing offer a mix of certified organic cereals, our natural and organic food business yogurt, vegetables, fruit products, ® to US$1 billion in net sales by 2019, and snacks, meals and baking products. reached US$1.058 billion in fiscal 2018.** Our progress: Sustainable supply: We are also ® n S cale – General Mills is now taking steps across our supply chain to the second-largest U.S. natural ensure a long-term supply of organic and organic food producer.* ingredients. Learn more about how we are building our organic capacity in n P roducts – One out of every 12 the Our Planet section of this report. products in our North American portfolio is certified organic or made *Based on SPINS NOMC Dashboard data through Sept. 16, 2018. **Nielsen updated through May 26, 2018; Natural Supermarkets updated through May 27, 2018; Whole Foods updated through May 26, 2018. Food safety u Material issue | GRI 416-1, 2, FP5 Our approach areas of concern, as well as collaborate n A udits – Our Global Internal Audit of excellence and online training with industry peers and regulators to team periodically audits the academy. In fiscal 2018: Safety is a priority for our company help raise standards industrywide. effectiveness and efficiency of n O ur General Mills food safety and central to our culture. Leading food safety controls and operating with safety – both in the workplace Systems: Our global food safety team included more than 400 procedures. Results are reported to and the food we make – is one systems focus on prevention, trained quality professionals. the company’s Global Governance of the key operating principles intervention and response: n W e conducted Auditor Academy Council and Board of Directors. that guides our work. n P rocesses – Food safety is training sessions attended by 25 n T raceability – Our inventory control and Investment: We invested US$14.4 million integrated into all our processes, participants from two countries. supplier management systems include into food safety in fiscal 2018; equal beginning with R&D and extending These sessions help improve our the ability to trace the sources of our to 7.6 percent of our total essential across our supply chain. ability to identify and fix issues, ingredients, which is key to isolating risks capital investment for the year. as well as prevent food safety n R isk mitigation – We conduct in the event of food safety concerns. We problems from occurring. Collaboration: Food safety leadership internal risk-based surveillance and evaluate our suppliers’ systems to ensure is a differentiator for General Mills, but food safety testing at all General Mills n W e provided food safety training they meet our traceability requirements. not an area of competition. We freely facilities to identify and prioritize to more than 3,500 professionals Training: We provide food safety share our best practices and emerging specific areas of risk. across the supply chain. training through our global centers GENERAL MILLS GLOBAL RESPONSIBILITY 17
Our Food Our Planet Our Workplace Our Community Governance: Performance conducted five voluntary product Our progress: recalls globally in fiscal 2018 (compared n D etailed policies – Governance n 8 36 supplier audits were Our goals: to nine in fiscal 2017), including of General Mills’ food safety and conducted in 2018. n 1 00 percent of General Mills facilities recalls of snack bars, cereal, yogurt, regulatory matters begins with a n 9 8 co-producer audits were third-party audited and/or certified. and fat and tallow products. corporate Food Safety and Regulatory conducted in 2018. Policy signed by our Chief Executive n 1 00 percent Global Food Safety Initiative (GFSI) certification of all Suppliers n 7 8 percent of our global co-production Officer. This corporate policy is General Mills owned facilities by 2020. Our approach: sites are GFSI certified. supported by 18 detailed policies with accompanying standards and Our progress: External verification and n A udits – To help ensure the safety of n 6 5 percent of global ingredient guidance documents. These global certification of our facilities includes: the raw materials (ingredients and suppliers and 92 percent of our North policies cover a broad range of food packaging) we use in our products, American ingredient vendor sites are n 1 00 percent of our facilities worldwide safety areas, including regulatory we continue to expand the number GFSI certified. are audited and/or certified by compliance, trace and recall, labeling, of supplier and co-producer audits n 3 00+ suppliers were trained through independent third parties using globally claims, physical, chemical and we conduct globally. We perform recognized food safety criteria. supplier schools and webinars in 2018. biological hazards, transportation, direct audits and also encourage n 9 50+ supplier representatives and good manufacturing n 8 4 percent of our company-owned third-party audits and/or certification, production facilities are GFSI certified, participated in training sessions practices and sanitation. such as through GFSI, as an additional indicating they meet global standards in Australia, Brazil, China, n L eadership – The Vice President preventive control measure. for food safety management India, Spain, Taiwan, Thailand of Food Safety and Quality has n S upplier training – We bring together recognized in more than 150 countries. and the U.S. since 2011. direct responsibility for food our suppliers around the world to safety. The Global Internal Audit Recalls: When we learn about illnesses share food safety knowledge and team periodically validates that that may be linked to our products, communicate food safety expectations. 100 percent our food safety processes and we take quick action. We collaborate We conduct supplier training in of General Mills controls are operating effectively. with health officials to investigate the facilities are third- 100% classroom settings tailored to the needs The company’s Global Governance situation, communicate with consumers of each market. The seminars address party audited Council conducts a quarterly review and issue voluntary product recalls topics such as biological and physical and/or certified of risk, which includes food safety. to remove affected products from hazard controls, allergen management store shelves, when appropriate. We for food safety. and production facility sanitization. GENERAL MILLS GLOBAL RESPONSIBILITY 18
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