The World of General Mills

1. The World of General Mills

2. Championship Brands

3. Nourishing Our Planet Purchasedin 2000 Began using recycled materials for paperboard cartons (1930s) General Mills Foundation 1954 Commits to 100% Sustainable palm oil by 2015 Early crop rotation adopters First GlobalSustainability Officerin 2007 Early pesticide management adopters 1945 100% vitamin-fortified cereal in 1961 Green Giant Integrated Pest Management First vacuum-pack corn in 1929 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

4. Cheerios: A Circle of Goodness Nourishing Communities Sustainable Crop Healthy breakfast Efficient Cereal Processing Renewable Energy Recycled Packaging

5. 2015 Goals Energy, water usage andgreenhouse gas emissions 20% Transportation fuel * Packaging improvements 35% 40% 50% Solid waste generation

6. Our Mission and Values

7. EPR: Does it Deliver as Promised?

8. Grocery Manufacturers Association *Represents a sample of GMA’s Members

9. Sustainability Sustainability Leadership The food, beverage, and consumer products industry has made great strides in many sustainability areas, furthering our commitment to applying sustainable solutions in all areas of our work while continuing to deliver products that enhance consumers’ lives. Learn More: A newly released Sustainability Success Stories Report by PricewaterhouseCoopers outlines the dramatic steps the industry has made around the areas of air, water, and waste. Packaging Together, the food, beverage and consumer products industry will voluntarily reduce its packaging by 4 billion pounds by 2020. This is a 19% cumulative reduction and a significant step for our industry and our environment. Learn More: GMA’s Sustainable Packaging Best Practices Guide outlines considerations and model practices in packaging design and sourcing. Food Waste There is no bigger opportunity for our industry to simultaneously address hunger in America and our environmental footprint than by reducing the amount of food sent to landfills by diverting food to food banks and food waste to beneficial alternatives like compost. These actions represent not only a significant opportunity to help the hungry, but also an opportunity to reduce emissions of methane. Learn more about the GMA-FMI Food Waste Opportunities and Challenges initiative.

10. Sustainability Cargill’s engineers designed and installed a methane reuse system that has and have displaced 20-25 percent of all natural gas use and reduced greenhouse gas emissions by 325,000 metric tons annually Heinz now manufactures all glass ketchup bottles using 100% post-consumer reground and recycled glass The Campbell Soup Company has reduced the amount of steel required to make soup cans by more than 1,800 tons since 2005 Since 2005, Kraft has removed more than 50 million road miles from its global transportation network The Kellogg Company has reduced electricity use at its warehouses in North America decreased 53% since 2005

11. State Overall Recycling Rates NH VT ME WA MT MA ND MN OR MI WI NY ID SD RI WY PA IA CT NE IN OH NV IL NJ WV CA UT CO VA MO DE KS KY NC TN MD OK SC AK AZ NM AR GA MS AL TX LA FL HI <10% 11%-20% 20%-30% 30%-40% *Note: 2004 Data >40%

12. U.S. Recycling Rates of Packaging Source: US EPA 2010 MSW Report, 2009 data (last reporting year)

13. Landfilling is Decreasing Source: US EPA 2010 Municipal Solid Waste Report

14. Solid Waste a Challenge to Municipalities 2010 Landfill Composition, 165 Million Tons Packaging: 38 M tons Food: 36 M tons 3

15. What is Extended Producer Responsibility? Extended Producer Responsibility:Shifts responsibility for the end-of-life of products and/or packaging from the municipality to the manufacturer. EPR: Commonly Stated Goals 1 Decrease environmental impact of packaging by increasing recycling rates 2 Create financial incentives for companies and consumers to recycle 3 Create incentives to design “environmentally friendly” packaging 4 Generate new revenue for states/municipalities

16. SAIC Report: EPR Not An Effective Solution Conclusion 1: U.S. overall MSW recycling rate is equal to or better than Canada & Europe Nationwide recycling rates of all MSW • U.S. 24% , EU 23%, Canada 18% 13 7

17. SAIC Report: EPR Not An Effective Solution Conclusion 2: EPR does not cause changes in package design or selection • Packaging in U.S. decreased more than in EU, despite faster GDP growth in U.S.

18. SAIC Report: EPR Not An Effective Solution Conclusion 3: EPR has not decreased system cost. Increases government & administrative costs 8

19. SAIC Report: EPR Not An Effective Solution Conclusion 4: Current policies can effectively & efficiently in improving recycling & recovery rates if implemented • 18 identified in report • Work in combination to increase rates • Do not increase government or administrative costs

20. GMA Holistic Approach • Evaluate Options for Managing Waste • Continue our Commitment to Reduce Waste • Increase Recovery and Recycling Rates • Address Food Waste • Coordinate Efforts • Deals with all aspects of waste, not just packaging and recycling 6

21. Solution 1: Evaluate Options for Managing Waste • SAIC Report • Understand Other Initiatives • Pay-as-you-throw • Variable pricing • Disposal bans, limits • Recycling rewards, rebates • Mandatory recycling (require materials or service levels) • Recycling program management • Integrated solid waste management plans • Diversion goals • Landfill surcharge/tax • Recycling infrastructure/program grants • Building design standards • No direct landfilling of unprocessed waste

22. Solution 1: Evaluate Options for Managing Waste U.S. has One-Fifth Excess Capacity Recycling of total MSW Source: McKinsey & Company analysis

23. U.S. Lags Behind Europe in Waste to Energy Source: US EPA 2010 Municipal Solid Waste Report

24. Solution 2. Continue our Commitment to Reduce Packaging Waste Update 2012 Packaging Reduction Survey 2013 Sustainability Success Stories Report Best Practices Guide to Sustainable Packaging with FMI 4b pound packaging weight cumulative avoidance, 2005-2020 9

25. Solution 3. Increase Recovery & Recycling • Aggregate & Amplify Municipal Success • Explore Partnerships with Key Cities • Identify Best Practices • Learn from NGO Thought Leaders 23% increase in volume 18% increase in participation 10

26. Solution 4: Address Food Waste The Case for Less Food Waste Food Waste Action, Next Steps Complete Assessment Agree on Metrics & Goals Publish & Educate Members on Best Practices Identify & Support Public Policies Develop & Execute Communication Plan Explore Pilot Projects Social Economic Environmental 11

27. Solution 5: Coordinate Efforts • Participation • Partnership • Leadership • Education 12

28. Packaging EPR Activity 2013 EPR Forecast NH VT WA ME MT MA ND MN OR MI WI NY ID SD RI WY PA IA CT NE IN OH CA NV IL NJ WV UT CO VA MO DE KS KY NC TN MD OK SC AK AZ NM AR GA MS AL TX LA FL HI 2012 Introductions 2013 Prospective As of 11/13/12

29. Food for Thought What is the problem we’re trying to solve? Is a trash tax the most efficient way to address these challenges? Are there other solutions that are less costly? Are there more sustainable approaches that are both voluntary and more effective?