EMS Internal Auditing

> More than 160,000 employees > Located in 63 countries > More than $60 billion in revenue With more than 160,000 employees worldwide, we draw from a diverse set of skills, experiences, cultures and ideas. With employees in 63 countries and trading relationships with another 40, we can use the global knowledge within our company to provide local solutions that have meaning for our customers. We are committed to growth and reinvestment of the majority of our earnings back in to the company. Last year, we achieved annual sales greater than $60 billion. A majority of our net worth is outside of North America, reflecting the importance of our global operations and emerging economies. IMAGE DESCRIPTION: Yellow dent corn #2; an important agricultural product for food ingredients, animal feed and fermentation Business Unit examples across the globe: TURKEY, CORN MILLING, BEEF, PORK, BIOFUELS, RISK MANAGEMENT, COTTON, CHOCOLATE, FLOUR MILLING & 50+ others.

Cargill Value Added Meats Retail & Cooked Business CONFIDENTIAL. This document contains trade secret information. Disclosure, use or reproduction outside Cargill and inside Cargill, to or by those employees who do not have a need to know is prohibited except as authorized by Cargill In writing. (Copyright Cargill, Incorporated 2007. All rights reserved.)

Our Products Young Turkey Breast Sweet Italian Sausage Hot Italian Sausage Breakfast Sausage Bratwurst Sausage Ground Turkey Breast 7% Ground Turkey Ground Turkey Patties Tenderloins Breast Chops Scaloppini Tray pack Thighs Tray pack Drums Cutlets Tray pack Wings

Cargill’s Virginia Turkey Operation Location * Harrisonburg, VA OTHER LOCATIONS I NCLUDE: Arkansas, Missouri, Texas, Minnesota, and Nebraska

How Complex is our EMS? Mid-season wheat after the rains IMAGE DESCRIPTION: Mid-season wheat after the rains

Agriculture… 10 Breeder Farms Hatchery Feed Mill Live Haul

And…The Largest Turkey Plant in the World Feed Mill

Significant Aspects Boiler Air E missions Wastewater Air Emissions from feed milling Litter Application Incineration on farms Oil Spill

Environmental, Health and Safety Mission. Our mission is to create distinctive value by developing people and assuring continuous improvement in environmental, health and safety processes and performance Key message with an EMS is “continual improvement”

EMS History In early 2007, nearly 60 sites in Cargill Meat Solutions (beef, pork, case ready and turkey) set out to become ISO 14001 certified We implemented our corporate template with the help of Malcolm Pirnie with workshops within each BU By June 2008, the sites were certified by NSF. We chose a corporate certification. WHY?

EMS Model Internal Auditing fits into the check step of the model Qualified auditors in EHS, Quality Assurance, and Operations. Internal Auditing and Management Review are the “HEART AND SOUL” of the check step Can’t sustain an EMS without strong internal audits and value-added management reviews

EMS Internal Audit Preparation Preparing your people….from site leader to supervisors to shop floor associates EMS Preparation Sheet

EMS Internal Audit Preparation Preparing as a lead auditor Example: Internal EMS Audit Agenda Example: Internal EMS Audit Plan ORGANIZATION IS THE KEY!

Cargill Qualified Auditor Structure Attend the classroom training for becoming an EMS qualified auditor (consultant lead course) Participate in at least one EMS internal audit as an observer Participate in at least one audit as co-lead Lead an EMS audit Corporate leader or designated expert “knights” you into the kingdom of qualified EMS auditors Can take repeat audits as an EMS audit team leader to ensure competency

Cargill Qualified Auditor Value Management motivated by EHS professionals for 2 reasons Improved EMS results b/c of higher competency Best practices acquired from auditing other sites Deliver on Process Improvement Expectations i.e. water efficiency (later slide) Resources Time for classroom training and hands on training $ for classroom and hands-on training Mentor (like businesses?) Cargill can be a mentor for free

Cargill Qualified Auditor Value Build bench strength in a large corporation Talent Management Bottom line savings for process driven approach Often informal, non-process driven systems EMS qualified auditors are trained to be process driven and to “connect the dots” EMS process improvement overlaps into other functions of your business (safety, quality, efficiency)

Using the data from an EMS internal audit Tools used by Cargill Integrated system where audit non-conformances are documented as workflows Ensures efficient on time closure and adequate sustainability Number of non-conformances and evidence of continuous improvement used in performance evaluations for management responsible for the EMS…PROACTIVE! Root causes for non-conformances discussed in annual Management Review Leads to focused training in these areas of opportunities

How formal should the process be? In Cargill, the formal nature of an EMS is exactly what we needed. Structure Discipline Detailed documentation when deviation occurs Non-conformance workflows include accountability Management Reviews The more formal the better, depending on how stringent your current processes are

Water Efficiency Project 20% improvement in water efficiency in 16 weeks…HOW? Behavior Based Energy Management Driven by our EMS! $6 + for water in and water out Over $300K savings each year with no capital investment.

Water Efficiency Project We did not meet our 2008 objective and target We are not perfect…I can assure you  Our failure caused our new success The internal audit and thus the management review demanded a culture change in water efficiency The process worked!

Learn from your mistakes with: BE HUMBLE Learn from your mistakes with: Internal auditing Management Reviews Setting Objectives and Targets Documenting Environmental Management Programs (EMPs) Training Techniques

Conclusions Qualified Auditors are a key to success Site leadership to promote the formal processes Organization (audit prep tools) are critical to a smooth audit Let the data speak in management reviews Water savings example

Conclusions Learn from mistakes Strong audits and candid management reviews promote sustainability The process will improve other areas of your operation

Q & A ? IMAGE DESCRIPTION: Mid-season wheat after the rains