2018 Sustainability Report

Commitments

Tracking Progress Toward Our Commitments

Status Key:

Performing at or above target

Performing below target

Encountering significant challenges

Commitment: Reduce our environmental impact as we feed the world
Goal:	Reduce greenhouse gases (GHG) by 30 percent by 2030	Status:	Process to Date:	Partnered with World Resources Institute in FY2017 and early FY2018 to develop a science-based target for GHG emissions In Q2 FY2018, publicly announced our a GHG emission reduction target of 30 percent by 2030 In Q4 of FY2018, received approval from the Science Based Target initiative (SBTi) for our reduction target We will publish key metrics, provide updates on initiatives we launch, and report our progress towards achieving this goal in future communications and our annual sustainability report
Goal:	Reduce water intensity by 12 percent by 2020	Status:	Process to Date:	Decreased 2.96 percent since FY2015 (baseline)
Goal:	Increase sustainable land and stewardship practices on 2 million acres by 2020	Status:	Process to Date:	Partnered with Environmental Defense Fund on two pilot programs that will help improve nutrient management on 500,000 acres of corn
Commitment: Sustainably feed the world with safe, high-quality and nutritious food products
Goal:	Sustainably offer protein and food products that consumers want	Status:	Process to Date:	Launched 359 new products in 2018 and invested $114 million in R&D
Commitment: Enable our team members to reach their unique potential
Goal:	Build a highly engaged team with a 10 percent increase in retention	Status:	Process to Date:	Recorded a 5 percent reduction in retention from FY2017 to FY2018 due to wage pressure and the lowest unemployment rates the U.S. has experienced in decades have made it increasingly difficult to stabilize our workforce and achieve the desired level of improvement in retention.
Goal:	Create a safe workplace by reducing OSHA recordables by 10 percent year-over-year	Status:	Process to Date:	Reduced OSHA recordables by 22 percent from FY2017 to FY2018
Goal:	Aspire to offer English as a second language and financial literacy training to all employees	Status:	Process to Date:	Upward Academy is currently available to team members in 33 locations and is expected to expand to an additional 24 locations in FY2019
Commitment: Support the communities we serve where help is needed most
Goal:	In 2015 pledged $50 million in cash or in-kind donations to fight hunger by 2020	Status:	Process to Date:	Donated $2.442 million towards hunger relief Served 2,068,970 meals as a part of our Meals that Matter® program Donated products that provided 46,065,388 servings to ease hunger relief Total contribution thus far = $45.9 million
Commitment: Transparently advance animal welfare and experience
Goal:	Deploy the most transparent welfare practices in food	Status:	Process to Date:	Began disclosure of six key welfare indicators:* Broiler Chickens: Transport Livability 99.83%; Non-Damaged Wings 98.88%; Acceptable Paw Scores 78% Cattle & Hogs:** No Falls 99.15%, Not Prodded 99.15%, Acceptable Wait Time 94.02%
Goal:	Be a leader in animal experience research and innovation	Status:	Process to Date:	Piloted new technologies in areas such as controlled atmospheric stunning Continued to implement largest industry third-party remote video auditing system In 2018, become the first beef processor to license the Progressive Beef™ program, a comprehensive quality management system for cattle feeding operations

FOOTNOTES AND REFERENCES

* Percentage acceptable of animals and trailers audited against NAMI Recommended Animal Handling Guidelines [June 2017 Rev. 1] for cattle and hogs and NCC Welfare Guidelines for Broilers.

** We are committed to continuous improvement in animal welfare and our opportunity is to improve paw scores during winter weather. Paw condition can be impacted in winter weather by factors such as low temperatures and moisture. Our goal is to improve paw scores in winter months by five percent year-over-year. We will report our progress against this goal in our annual sustainability report.