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Corporate Sustainability Program Bill Gill August 5, 2011

OUR COMMITMENTS. Corporate Sustainability Program Bill Gill August 5, 2011. Presentation Overview. Our Sustainability Program Current Status What’s Next. Smithfield Foods’ CSR/Sustainability Focus. Structure Overview:. Smithfield Foods Corporate:

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Corporate Sustainability Program Bill Gill August 5, 2011

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

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

  3. Smithfield Foods’ CSR/Sustainability Focus

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

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