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Corporate Sustainability Program Bill Gill August 5, 2011 OUR COMMITMENTS.

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Presentation on theme: "Corporate Sustainability Program Bill Gill August 5, 2011 OUR COMMITMENTS."— Presentation transcript:

1 Corporate Sustainability Program Bill Gill August 5, 2011 OUR COMMITMENTS

2 Presentation Overview Our Sustainability Program Current Status What’s Next

3 Smithfield Foods’ CSR/Sustainability Focus Good Food. Responsibly. CommunityEmployeesAnimalsFood SafetyEnvironment

4 Structure Overview: Smithfield Foods Corporate: Foods’ Executive Sustainability Committee sets goals and targets for IOCs Foods’ Sustainability Council maintains communications, oversight, database and scorecards Each IOC: Has IOC level CSR/Sustainability Coordinator Manages goals and targets Provides recommendations to Foods and participation on Council Reports to Foods (data used for CSR Report)

5 Accountability For Each IOC: Sustainability goals and targets in each IOC strategic plan Larry Pope will review IOC performance/year Incentives Internal Recognition (by CEO or highlighted with the Board) External Recognition (press releases, customers, etc.)

6 Foods Committees: Board level Sustainability, Community and Public Affairs Committee: Wendell H. Murphy, David Nelson, Paul S. Trible, Jr. (Chair) Corporate level Executive Sustainability Committee: George H. Richter Joseph W. Luter, IV Robert W. Manly, IV Dennis H. Treacy (Chair) Executive Sustainability Committee reports and meets annually with CEO Jerry H. Godwin Michael E. Brown Timothy O. Schellpeper Joseph B. Sebring

7 Your Partners: Your IOC Environmental Coordinator John Meyer at John Morrell Keith Bailey at Smithfield Packing Susan Murphy at Farmland Kraig Westerbeek at Murphy-Brown Your IOC Sustainability Coordinator John Meyer at John Morrell Jeff Gough at Smithfield Packing Mark Garrett at Farmland Don Butler at Murphy-Brown

8 More Partners: Smithfield Foods Environmental Affairs Stewart Leeth (Legal / Overall Administration) Bill Gill (Logistics / Implementation) David Townsend (Hog Production / FFA / Learners to Leaders) Kathleen Pope (Social Media / YouTube / Twitter) Sylwia LaBudde (WebMetrics / EMS) Rocky Beem (Regulatory) Eric Lassalle (Energy / GHG’s) Keira Ullrich (PR / Investor Relations) Let us help you make the program work for you

9 Goals and Targets for Each IOC: Environmental Goals => Eliminate NOVs and reduce natural resource demand IOC Targets (all by FY): Energy reduction => 10% reduction over 2008 (normalized) by 2016 Water use reduction => 10% reduction over 2008 (normalized) by 2016 Solid waste reduction => 10% reduction over 2008 (normalized) by 2016 GHG emissions reduction => 10% reduction over 2008 (normalized) by 2016

10 Goals and Targets for Each IOC: Community Goals=> Provide food to the needy and enhance education in our communities IOC Targets: Pork Group IOCs: Provide needy with 1 million servings/year Coordinate all food relief under Helping Hungry Homes initiative Add and maintain Learners to Leaders programs (goal: a minimum 2/IOC) Facility/Farm Division Targets: Participate in 2 community events (e.g., FFA environmental competitions judging) where each major facility/farm division located Clean Community Program - Sponsor a minimum of 1 community-level cleanup project/year Participate in WWMD

11 Goals and Targets Each IOC: Animal Well-being Goal=> Keep our animals safe, comfortable, and healthy IOC Targets: Hog Production IOC Must Maintain and Build Upon Industry Leadership Maintain 100% PQA Plus Certification and site assessments Continue pen gestation conversion Pork Group IOCs Must Demonstrate Continuous Improvement and Systematic Approach to Humane Handling Maintain written program, training and 3rd party audits at slaughter plants according to AMIF Recommended Animal Handling Guidelines and Audit Guide: A Systematic Approach to Animal Welfare Maintain TQA certification for all drivers PQA Plus Certification and site assessments for suppliers by 2011

12 Goals and Targets For Each IOC: Employees Goal=> Reduce employee injury rates Facility/Farm Division Targets: Meet or beat company goals based on general manufacturing industry national average for injuries 10-hour general industry training by all safety leadership Safety Roundtable meetings at all locations Achieve hourly employee engagement to 25% by FY 2015

13 Goals and Targets Each IOC: Food Safety Goals=> Deliver safe, high quality meat products with no recalls IOC Targets Achieve superior food safety program Obtain 100% Global Food Safety Initiative (GFSI) certification for all facilities and 100% USDA Process Verified Nutrition Assure wide variety for different diets and needs Assess nutrition issues like salt content, obesity, etc.

14 Communication and Recognition Goal=> Increase awareness of our programs and achievements IOC Targets Undertake a minimum of 2 speaking engagements/year Facility/Farm Division Targets Participate each year in 1 or more state and/or trade association environmental awards program Minimum of 2 meetings/year with community stakeholders to highlight programs and obtain input and provide report Participate in Foods’ environmental awards programs

15 Current Status

16 Data collected and compiled (after extensive review and correction) Preliminary results discussed with IOC CSR/Sustainability Coordinators Assessing weighting and results (Safety adjustments and NOV scoring) Finalizing scores and reporting Everyone looks pretty good Data Collection and Scoring:

17 What’s Next

18 Reporting Finalize scores with IOC Sustainability Coordinators and Dennis Treacy Report results to the Executive Sustainability Committee and CEO Presidents to distribute information throughout their respective organizations Plan / Do / Check / Act at all levels Press Release with highlights of program and results

19 Ongoing To Do’s Work with your Coordinators to determine by who and how Sustainability Program targets will be addressed Continue to make inputs to WebMetrics. Look for the **SMS** designator Address any new responsibilities Provide support to new Team members Ask questions/provide input/make comments

20 Corporate Sustainability Program Bill Gill August 5, 2011 QUESTIONS?

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