2013 General Mills Global Responsibility Report

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On April 30, 2013, General Mills released its 2013 Global Responsibility Report, which outlines the company’s progress and commitments in the areas of health, environment, sourcing, workplace and …

On April 30, 2013, General Mills released its 2013 Global Responsibility Report, which outlines the company’s progress and commitments in the areas of health, environment, sourcing, workplace and community engagement.

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  • 1. Global Responsibility 2013Health Environment Sourcing Workplace Community
  • 2. Table of Contents 76 APPENDIX 76 Environmental Data Summary 77 GRI Index 2 INTRODUCTION 10 HEALTH 11 Overview 11 Our approach: invest and innovate 12 Our strategies and actions 13 Provide nutritious food 21 Educate consumers 24 Advance global food safety 26 ENVIRONMENT 27 Overview 28 Our approach: measure and reduce 29 Our strategies and actions 30 Reduce resource usage in our operations 39 Increase sustainability of ingredients 66 COMMUNITY 67 Overview 68 Our approach: connect and lead 68 Our strategies and actions 69 Alleviate hunger and advancenutrition wellness 72 Improve education 74 Strengthen communities 40 SOURCING 41 Overview 42 Our approach: plan and execute 42 Our strategies and actions 43 Increase sustainability of ingredients 50 Improve global water stewardship 52 Improve supplier sustainability 54 WORKPLACE 55 Overview 56 Our approach: inspiration and action 56 Our strategies and actions 57 Build a strong workplace culture 61 Maintain a safe workplace 63 Respect, develop and invest in employees
  • 3. General Mills Global Responsibility 01Acknowledging and addressing the inter-relationship of economic, environmentaland social value is a necessity intoday’s world. For companies lookingto responsibly address truly globalchallenges, it is also an opportunity. AtGeneral Mills, we call our approach“Holistic Value Creation.” We look tocreate value holistically – not only forour shareholders, our customers and ourconsumers, but also for our suppliers,our communities and our world.From China to Peru, we are morecarefully considering business outcomesand external impacts. Through ourproducts, we are continuously strivingto make consumers’ lives healthier,easier and richer. Through our actions,we are simultaneously working tosource responsibly, to conservethe natural resources on which ourproducts depend and to strengthenthe communities producing them.Our world faces unprecedentedchallenges. Today, almost 1 billion peoplelack sufficient food – and the numberof hungry is likely to only increase.Current projections suggest the world’spopulation will reach 9 billion peopleby 2050. Essential natural resources –especially water and arable land – arealready under severe stress in parts ofthe planet, creating chronic challenges formillions. Producing enough food to feedan increasingly hungry world will requirenot only innovation and dedication, butalso careful attention to the impactof agriculture on our environment.In this, our 43rd year of reporting backto our communities and stakeholders,we have expanded the breadth anddepth of our reporting across fivekey focus areas: Health, Environment,Sourcing, Workplace and Community.We continue to make progress inadvancing our stated goals in these keyfocus areas. For example, in 2012, weagain improved the health profile ofGeneral Mills products around the world.We again decreased natural resourceconsumption in our operations andacross our global supply chain. We aremitigating water risk, and taking steps tomore sustainably source raw materials.Of course, we also continue to supportour employees with safe, ethical andinclusive workplaces. And we continueto nourish our communities throughphilanthropic and employee engagement.We’re not alone in addressing theseglobal challenges. We’re findingopportunities for collaboration withbusiness, government and NGOs onimportant systemic solutions. We’reworking with external partners and aresignatories on a number of key globalefforts, such as the United NationsGlobal Compact. And while we’reproud of our progress, we also knowthere is still much more to be done.Thank you once again for yourinterest. As always, we welcomeyour questions and comments.Sincerely,Ken PowellChairman, Chief ExecutiveOfficer, General MillsAt General Mills, one of our goals is to stand among the most socially responsible foodcompanies in the world. In pursuit of this goal, we work to earn the trust of our consumers,customers, employees and other key stakeholders every day. Building and maintaining thistrust is essential to our business and to the fulfillment of our mission of Nourishing Lives.To our Stakeholders:WATCH VIDEO
  • 4. General Mills Global Responsibility 02INTRODUCTIONOur valuesWe do theright thing,all the time.We innovatein every aspectof our business.We buildour greatbrands.We respect,develop and investin our people.We strive forconsistently superiorperformance.Everything we do reflects our strong core values, and we live these values every day:General Mills has been fulfilling our mission of Nourishing Lives –making lives healthier, easier and richer – for 146 years.
  • 5. General Mills Global Responsibility 03Highlights650+General Mills productshave been nutritionallyimproved since weimplemented our HealthMetric in 2005.52%packaging volumehas been improvedsince 2009 – exceedingour 2015 goal, whichwe have increased.50%palm oil will besustainably sourcedby the end of fiscalyear 2013.8countries honoredGeneral Mills withworkplace awards in2012, and 88 percent ofour U.S. employees saidthat General Mills is agreat place to work.86%increase in R&Dspending on health andwellness since 2004.10priority ingredientsrepresenting 50 percentof our annual purchasesare on the path toimproved sustainability. 10or less grams of sugarin all General Millscereals marketedto children.84%solid waste diverted fromlandfills in 2012. Since2005, we have reducedour waste generationrate by 40 percent.$35 million+food products donatedto Feeding America’s 200food banks in 2012 (US$).$143million+donated to charitablecauses in 2012 – GeneralMills has given more than$1 billion to charitablecauses worldwide since theGeneral Mills Foundationwas created in 1954 (US$).
  • 6. General Mills Global Responsibility 04We produce and market morethan 100 consumer brands inmore than 100 countrieson six continents.$16.7billionGlobal net sales*$1.6 billionNet earnings*$143 millionCommunitycontributions34,500 employeesAbout half work outsidethe United States100+ consumer brandsOur many brands can befound in more than 100countries on six continents$4.2 billionNet sales for ourInternationalbusiness segment*146 yearsWe have beenmaking liveshealthier, easierand richer for morethan a century*Excludes $1.3 billion proportionate share of joint venture salesAll figures represent fiscal 2012 results and U.S. dollars.
  • 7. General Mills Global Responsibility 05Climate change – Climatechange poses serious risks forour planet. Governments, companies,organizations and individuals all needto take action to mitigate these risks.In the process of bringing food fromthe farm to the consumer’s table, themajority of greenhouse gas (GHG)emissions occur in agriculture and thepackaging supply chain. General Mills isreducing GHG emissions in our facilitiesand across our entire value chain.Water – Water scarcity is agrowing problem around theworld. According to projections from theOrganisation for Economic Co-operationand Development (OECD), almosthalf of the world’s population couldbe living under severe water stress by2050. Agriculture is a major user ofwater resources and also contributesto water pollution: farming accountsfor approximately 70 percent of waterused in the world today. General Millsis addressing water use across ourvalue chain to improve sustainablemanagement of water resources.Waste – Food waste createsfive times more methane inlandfills than packaging waste – andmethane is a greenhouse gas 20 timesmore potent than carbon dioxide.Everyone across the food productionand consumption spectrum plays arole in reducing the amount of solidwaste. Efficiencies in productionplay a role as does the processing offood, which extends shelf life, and thepackaging of food in quantities thatmatch consumption to reduce waste.General Mills also works to reduce theenvironmental impact of our packaging.Environment – reduce impactOpportunities and challengesAs one of the world’s largest food companies, we see the opportunity to help address some of the world’s most pressing challenges,including nutritional imbalances, natural resource scarcity and food insecurity.Nutrients – More than15 percent of the globalpopulation today is undernourished.Fortified foods help deliver needednutrients. General Mills and other foodcompanies enrich foods with nutrients,such as vitamins, minerals and fiber.Reduction – Many peoplearound the world consume toomany calories and too much fat, sugarand sodium. Consumers worldwide eatan average of 9 to 12 grams of salt aday – up to twice the recommended dailylevel of 6 grams. General Mills and otherfood companies are reducing calories,fat, sugar and sodium in our products.Balance – In more developedregions of the world, obesity isa major health issue. The World HealthOrganization reports that the numberof overweight children has tripled in thepast three decades, with rates holdingsteady since 2007. Making nutritiousfood choices and balancing food intakewith activity are keys to addressingthe obesity challenge. General Millshelps educate and empower peoplearound the world to live healthier lives.Health – improve nutrition and increase activityMaking nutritious foodchoices and balancingfood intake with activityare key to addressingthe obesity challenge.According to OECDprojections, almost halfof the world’s populationcould be living under severewater stress by 2050.
  • 8. General Mills Global Responsibility 06Grow – In order to feed the9 billion people expected by2050, the world will need to produce70 percent more food. Doing so willrequire innovation and collaborationto increase yields sustainably oncurrently producing lands. Futureproduction increases must be achievedusing less water and less expensiveinputs to conserve resources.Research – Higher yieldingcrops, including disease anddrought resistant varieties, will benecessary to sufficiently boost globalfood production. While biotechnologyholds promise to alleviate chronichunger and prevent disease, and toenhance sustainability, nutrition andtaste, the success of this technologywill continue to depend on its ability toachieve broad consumer acceptanceand support. Ingredients improvedthrough biotechnology have beenused for 15 years, yet some consumersremain opposed to biotechnology.As a consumer-focused company,General Mills tries to deliver whatconsumers want and need. For thatreason, products we produce forEurope do not use genetically modifiedingredients, and we offer our U.S.consumers leading brands of organicproducts as a non-GMO choice.Preserve – One-third of thefood grown globally is wasted,according to the Food and AgricultureOrganization of the United Nations(FAO). Reducing food waste is critical tofeeding the world’s growing population.In the developing world, much of thewaste stems from inadequate foodstorage and transportation. In theUnited States, where as much as40 percent of food is wasted, morethan 90 percent of that waste occursat homes or in foodservice settings.Processing and packaging foodextends shelf life, thereby reducingwaste. General Mills strives topackage food in quantities that matchconsumption to reduce waste.Food security – increase yields sustainably, reduce water use, reduce food wastePeople – Workers in agricultureand food production aroundthe world deserve to be treated withdignity and respect in accordance withthe United Nations Global Compact andthe International Labour Organization’s1998 Declaration on FundamentalPrinciples and Rights at Work. GeneralMills supports ethical standards andguidelines across our supply chain.Animals – The humanetreatment of animals is anarea of concern within the agriculturalsupply chain. General Mills’ animalwelfare policy focuses on howanimals are raised and treated.agriculture – To conservenatural resources, it is essentialto sustainably source ingredients thatbecome food and fiber that becomespackaging. General Mills pursuesincreased levels of sustainability in ourraw materials and promotes sustainableprocesses in our supply chain.Sourcing – protect people, animals and the environmentTo conserve natural resources, it is essential tosustainably source ingredients that becomefood and fiber that becomes packaging.In order to feed the 9 billion peopleexpected by 2050, the world will needto produce 70 percent more food.
  • 9. General Mills Global Responsibility 07The General Mills value chain includesour own operations as well as those ofour partners, such as farmers, millers,transporters and retailers. Our employeesas well as our suppliers, customers,consumers and other stakeholders play anessential role in helping to bring our missionto life and our products to consumers.Field to Table:Our Value ChainEnjoying foodn Makingn Eatingn Disposing1farming 2 Transforming 3Converting 6CONSUMING 5 selling 4Shipping Making products fromfood ingredientsn Mixingn Cookingn PackagingGrowing cropsn Plantingn Tendingn HarvestingTurning crops intofood ingredientsn Cleaningn Millingn PreparingMaking food available for purchasen Stockingn Promotingn ShoppingMoving foodto storesn Packingn Transportingn Delivering
  • 10. General Mills Global Responsibility 08We provide people withconvenient, nutritious foodthat – when combined withexercise and activity – can helpthem live healthier lives. Weimprove the health profile ofour products while meetingconsumer requirements fortaste. We educate consumersto promote better health,we support responsiblemarketing practices, and weadvance global food safety.Our goal is to continuallyreduce our environmentalfootprint. We focus our effortson areas where we can havethe greatest impact, bothwithin our own operationsand outside of them, primarilyin agriculture and ingredientproduction. Across our globaloperations, we work toreduce our natural resourceconsumption. And upstream,we focus on sustainablysourcing the raw materialswe use in our products.We conserve and protectresources by sustainablysourcing the raw materialswe use in our products. Wefocus on increasing thesustainability of the 10 priorityagricultural raw materialswe source, which representmore than 50 percent of ourannual purchases. We alsohelp improve the livelihoods ofsmallholder farmers, improveglobal water stewardship,improve supplier sustainabilityand respect human rightsin our supply chain.We foster a safe, ethical,diverse and inclusive workplacewhere employees can thrive.We respect, develop andinvest in our employees andcontinue to improve workplacesafety through our efforts toprevent injuries and illnesses.We support our employeesin being active, eatinghealthy and staying well.We nourish our communitiesglobally with remarkablephilanthropy. We work ininnovative ways with partnersat the global, national and locallevels to harness our collectiveimpact in key target areas,while engaging employeesthrough volunteerism. Wefocus on alleviating hunger andadvancing nutrition wellness,improving education, andstrengthening communities.Health CommunityWorkplaceSourcingEnvironmentResponsible practices areat the core of our missionand business strategy.
  • 11. General Mills Global Responsibility 09Ethics and complianceOur Code of Conduct for employeesreflects our value, “Do the right thing, allthe time.” We have high expectationsfor ethical conduct in every aspect of ourbusiness. General Mills’ global reputationas an ethical company depends on eachemployee always acting consistentlywith the law, our policies and our values.General Mills employees receive a Codeof Conduct that outlines our ethicalexpectations and provides practical tipsand examples for how to act with integrityin every decision, every action, every day.OrganizationalresponsibilityThe General Mills leadership team hasultimate responsibility for the company’scorporate social responsibility. The teamincludes: Ken Powell, chairman and CEO;Kim Nelson, senior vice president ofExternal Relations and president of theGeneral Mills Foundation; Jerry Lynch,chief sustainability officer; and JohnChurch, senior vice president of SupplyChain; as well as our Board of Directors’Public Responsibility Committee.StakeholderengagementWe solicit input from groups like Ceres(a coalition of investors, environmentalorganizations and other public interestgroups working with companies toadvance their environmental andsocial performance) to ensure weaddress issues of concern to them.We are active members in key industrycoalitions such as the Consumer GoodsForum, Grocery Manufacturers ofAmerica, and Field to Market. We partnerwith nongovernmental organizations(NGOs) such as the World WildlifeFund and The Nature Conservancy onenvironmental matters. We have beenparticipants in the Carbon DisclosureProject (CDP) since its inception in 2000and are members of the Roundtable onSustainable Palm Oil (RSPO). As part ofour commitment to supporting humanrights in our supply chain, we are leadersin the AIM-PROGRESS ResponsibleSourcing task force, and are signatoriesto the United Nations Global Compact(UNGC). In addition, we are guided bythe International Labour Organization’s(ILO) 1998 Declaration on FundamentalPrinciples and Rights at Work. Withregards to nutrition, we work with severalorganizations including the AmericanAcademy of Family Physicians (AAFP)and the Academy of Nutrition andDietetics to fund nutrition research andhelp promote nutrition education.Public policyIn addition to this engagement, wealso recognize the importance ofaccountability and transparency regardingour public policy engagement andpolitical contributions. Our civic policydescribes our approval process for usingcorporate funds for political contributions.The Public Responsibility Committeeof our Board of Directors oversees thecompany’s political activity, including ourpolicy, an annual list of corporate politicalcontributions, major trade associationmemberships, and any independentpolitical expenditures (although thecompany has not made any). A list of ourpolitical contributions is made availableon our website. We have been publiclydisclosing this information since 2005.In 2012, we increased the disclosureof information we provide about ourpublic policy engagement. In 2012,the Center for Political Accountabilitygave General Mills a positive rankingusing its accountability metric.ApproachReport scopeIncreasing transparencyIn this year’s report, we have expandedfrom three to five key focus areas: Health,Environment, Sourcing, Workplaceand Community. Our decision toelevate Sourcing and Workplaceas independent sections is basedon our own assessment as well asstakeholder input on material topics.For the second year, we have utilizedGlobal Reporting Initiative (GRI) G3.1Guidelines to help inform our reportingscope and content. We expanded thenumber of GRI Indicators includedin this year’s report – includingFood Processing Sector Supplementindicators. Our report is undeclaredand is not externally assured.Scope and responsibilityOur progress on key metrics is reportedfor fiscal 2012. We also includeinformation about some of our morerecent activities to illustrate progresson newer initiatives. The report scopeincludes global operations exceptwhere otherwise noted. Because moredata is available, the report providescomparatively more data about our U.S.operations, the largest segment of ourbusiness. Key metrics do not reflectrecent acquisitions – our controllinginterest in Yoplait S.A.S. to market Yoplaityogurt around the world and the fiscal2013 acquisition of Yoki Alimentos S.A.The General Mills leadership team,noted above, has responsibility forthe development of this report.
  • 12. Our strategiesProvidenutritiousfoodsEducateconsumersAdvanceglobal foodsafetyHEALTHAt General Mills, our mission isNourishing Lives – making liveshealthier, easier and richer.Our goal is to provide people withconvenient, nutritious food that –when combined with exercise andactivity – can help them live healthierlives. We believe that a variety ofconvenient foods plays an importantrole in peoples’ diets, providingnutritious, tasty choices at a reasonablecost. A healthy product portfolio isa fundamental part of our businessstrategy, and we continue to improvethe health profile of our products.
  • 13. Measuring progress: our Health Metric – General Mills is committed to improving the health profile of our products while meeting consumerrequirements for taste. Since 2005, we have tracked and quantified health profile improvements using the General Mills Health Metric. This tool isoverseen by the General Mills Health and Wellness Council and our Bell Institute of Health and Nutrition. Our Health Metric enables us to measureprogress against our product improvement goals. We have improved the nutrition profile of more than 650 General Mills products in the U.S.since 2005 in one or more of the following ways (for more detailed goals and results, see page 15):Health Environment Sourcing Workplace CommunityPerformance dashboardProduct improvement guidelinesIncreasingReducing FormulatingFormulating new products or reformulating existingproducts to meet specific internal requirements,including limiting calories, and meeting healthor nutrition claim criteria as defined by theU.S. Food and Drug Administration (FDA).Increasing beneficial nutrients – includingvitamins, minerals and fiber – by 10 percentor more and formulating products to includeat least a half-serving of whole grain, fruit,vegetables, or low or nonfat dairy.Reducing calories, fat,saturated fat, trans fat,sugar or sodium by10 percent or more.Our approach: invest & innovateOverviewOur investment includes researchconducted by our own Bell Institute ofHealth and Nutrition scientists as well asby scientists outside General Mills. Withbackgrounds in nutrition science, publichealth, clinical nutrition and food science,Bell Institute of Health and Nutritionexperts are a valuable resource for thebusiness teams at General Mills, as wellas for health professionals around the U.S.In fiscal 2012, the Bell Institute of Healthand Nutrition distributed more than 2.8million consumer nutrition educationmaterials to health professionals.Within our business units, we invest inresearch and development (R&D) to helpimprove the health profile of our products.Since 2004, we’ve increased R&D spendingon health and wellness by 86 percent. InMay 2012, we realigned our Innovation,Technology & Quality (ITQ) organizationto increase the speed of innovation, investin technologies that support multiplebusinesses and leverage our R&D andQuality capabilities around the world.We invest in nutrition science to better understand the relationship between food and health as we enhance our product portfolio$86%Since 2004, we’veincreased R&D spendingon health and wellnessby 86 percent.General Mills Global Responsibility 11
  • 14. Health Environment Sourcing Workplace CommunityWe also enhance and accelerate ourinnovation efforts by teaming up withworld-class innovators from outsideof the company. Through the GeneralMills Worldwide Innovation Network(G-WIN), we actively seek externalpartners who can help us deliverinnovation in products, packaging,processes, ingredients and technologies.We are growing our portfolio throughacquisitions that meet consumer demandfor health, taste and convenience. GeneralMills has licensed the Yoplait brandfrom Yoplait since 1977 and operates theU.S. Yoplait business, which holds theNo. 1 brand position in the U.S. yogurtcategory. In fiscal 2012, we completedour acquisition of a 51 percent controllinginterest in Yoplait S.A.S., and a 50 percentinterest in a related entity that holdsthe worldwide Yoplait brands. Yoplait isthe second-largest brand in the globalyogurt market. Consumer demandfor yogurt is growing in response toincreased interest in foods that emphasizeconvenience, flavor variety, value andnutrition. Yogurt is a nutrient-densefood that provides protein, calcium,potassium, vitamin D and other nutrients.In 2012, we expanded our portfolio byacquiring the Food Should Taste Goodnatural snack food business. FoodShould Taste Good is the latest additionto our Small Planet Foods natural andorganic products business, joining thedivision’s category-leading CascadianFarm, Muir Glen, and LÄRABAR brands.In India, we acquired the ParamparaFoods business, which offers consumersthe convenience of ready-to-cook spiceblends made with natural ingredients, suchas herbs, spices, onions and sunfloweroil, to deliver authentic Indian flavors.Leadership andgovernanceOur commitment to offering nutritiousfoods extends across the company.Operationally, product responsibilitylies within the R&D and Marketingorganizations. Responsibility for consumerhealth and safety, and product andservice labeling is held by the Senior VicePresident of Supply Chain, Senior VicePresident of Innovation, Technology andQuality. Responsibility for MarketingCommunications is held by the ChiefMarketing Officer. The Board PublicResponsibility Committee oversees thecompany’s health and wellness strategy.r In fiscal 2012, we expanded ourinterest in Yoplait worldwide and acquiredFood Should Taste Good natural snackfoods and Parampara spice mixes.Educate consumersA Promoting better healthB Supporting responsible marketingAdvance global food safetyA Adhering to strict food safety processesB Partnering to increase food safetyOur strategies and actionsp.13p.21p.24Provide nutritious foodA Delivering nutrition to millions of consumersB Improving product health profilesC Offering nutritious new products123General Mills Global Responsibility 12
  • 15. Health Environment Sourcing Workplace CommunityDelivering nutrition to millions of consumersProvide nutritious food11AGeneral Mills’ impactKey nutrients and food groupsGeneral Mills offers nearly 40 innovative, fiber-addedproducts – everything from cereal and bars to pancakes – underits category-leading Fiber One brand. According to the U.S.Centers for Disease Control and Prevention (CDC), ready-to-eat cereal is the No. 1 source of key nutrients like iron andfolate for kids ages 4-12. Our cereals advertised to childrenare fortified with calcium, iron, vitamin D and B vitamins.In 2012, our U.S. operations shipped more than 15 billion servings of whole grain annually. That adds up to more than40 million servings of whole grain each day (1 serving = 16 grams) – 35 million of those servings from our Big G cereals.Per capita cereal consumption is growing in markets around the world. Since 2003, our Cereal Partners Worldwidejoint venture with Nestlé has increased global consumption of whole grain by more than 3.4 billion servings.Cereal and Snack BarsVegetablesAmericans get as much as 30 percent of their daily fiber and50 percent of their daily vitamin C from frozen, canned and dry fruitsand vegetables. According to research by the University of California,Davis, frozen vegetables are as nutritious as their fresh counterparts.Green Giant vegetables are picked at the peak of perfection, packedand frozen to lock in naturally occurring nutrients.CerealGeneral Mills has been a pioneer in fortifying cereals. Today, allBig G kid cereals are fortified with vitamin D and calcium. AJuly 2012 study funded by the General Mills Bell Institute ofHealth and Nutrition, and published in The Journal of FoodScience, shows that vitamin D fortified cereal is one of the top10 food sources of vitamin D for those in the United States.Yogurt provides protein, calcium, potassium and other importantnutrients. Yoplait Original contains 20 percent of the Daily Valueof calcium and vitamin D in each cup. Research indicates thatwomen who regularly eat yogurt have a healthier body weight,smaller waist size and consume more essential nutrients.Yogurt CerealOur portfolio offers a broad array of great-tasting products that boost nutrient intakeSince the 1940s, General Mills has been an industry leader in enriching foods with nutrients in the United States. Research shows that enriched and fortified foods make a substantial contributionto the nutrient intakes of Americans. Around the world, more than 18,400 servings of Yoplait dairy products are eaten every minute, providing consumers with calcium and vitamin D.Most Americans aren’t getting enough calcium or vitamin D in their diets. Nearly nine outof 10 American kids don’t get enough vitamin D, and about four out of 10 don’t get enoughcalcium. Sixty percent of women don’t get the calcium they need for healthy bones and teeth.Percentage of people who are not getting enough calcium or vitamin DAge groups Calcium Vitamin D2-5 years 16% 86%6-12 years 43% 94%13-18 years 53% 92%19-50 years 26% 96%51+ years 55% 94%Calcium & Vitamin DNine out of 10 Americans aren’t getting enough whole grain. Most Americansare barely eating one serving of whole grain a day. Research shows that eatingenough whole grains, as part of a healthy diet, can help with heart health, weightmanagement and diabetes management and reduce the risk of certain cancers.Whole grainDietary fiber is important to digestive health and may also help curbhunger. Some research suggests that people who have a higherintake of fiber also tend to have a healthier body weight.Fiber, Iron, Vitamin C, B VitaminsGeneral Mills Global Responsibility 13
  • 16. Health Environment Sourcing Workplace CommunityCenters for Disease Control and Prevention (CDC). National Center for Health Statistics(NCHS). National Health and Nutrition Examination Survey Data. Hyattsville, MD: U.S.Department of Health and Human Services, Centers for Disease Control and Prevention.Percent of selected nutrients provided byready-to-eat cereal, children age 4-12Calories Vitamin A Thiamin Niacin Vitamin B6 Folate Iron Zinc3%13%17%15%20%30%23%14%Whole grain Vegetables Dairy FiberGeneral Mills has a long history of providing convenient, affordable, nutritious foods to help consumers meet key health and nutrition recommendations. In fiscal 2012,General Mills’ U.S. retail operations shipped billions of grams of whole grain and dietary fiber and billions of servings of vegetables and dairy, detailed below.240 billion grams of whole grain  1 billion servings of vegetables(1 serving = 1/2 cup)2.3 billion servings of low/nonfat dairy (1 serving = 1 cup)55 billion grams of dietary fiberBenefits of cereal1Albertson AM et al. Ready-to-eat cereal consumption: Its relationship with BMI and nutrientintake of children aged 4 to 12 years. J Am Diet Assoc 2003;103:1613-1619.2Cho S et al. The effect of breakfast type on total daily energy intake and body mass index: Results from theThird National Health and Nutrition Examination Survey (NHANES). J Am Coll Nutr 2003;22(4):296-302.3Barton BA et al. The relationship of breakfast and cereal consumption to nutrient intake and body mass index:The National Heart, Lung and Blood Institute Growth and Health Study. J Am Diet Assoc 2005;105:1383-1389.Health benefits for adultsHealth benefits for childrenadults (ages 19-64)n Adults who consumed more than 7 servings of ready-to-eat cereal in a 2-weekperiod had lower BMIs than those who ate cereal less frequently.n Frequent cereal eaters were less likely to be overweight or obese, compared to those who ate cereal lessfrequently, and had nutrient intakes that aligned more closely with national dietary recommendations.n Ready-to-eat cereal consumption is related to improved nutrient intakes. Ready-to-eatcereal consumption is related to improved nutrient intakes in American adults.Learn more about the benefits of cereal.A research1study conducted in 2012 and funded by the Bell Institute of Health and Nutritionexamined the relationship between ready-to-eat cereal consumption and BMI, nutrientintake and whole grain intake among American adults. Key findings include:n Studies have shown that children and adolescents who eat a ready-to-eatcereal breakfast have a lower Body Mass Index (BMI) and waist circumferencethan those who don’t eat cereal at breakfast or who skip breakfast.1, 2n Girls who eat cereal are less likely to become overweight as young adults than non-cereal eaters.3n A serving of cereal with milk costs about 50 cents on average, making cereal aninexpensive and efficient way to get important vitamins and minerals.Cereal provides key nutrients for childrenGeneral Mills Global Responsibility 14
  • 17. Health Environment Sourcing Workplace CommunityImproving product health profilesAround the world, we are making progresstoward our healthier product commitments.General Mills has improved the healthprofile of 68 percent of our U.S. retailsales volume since we began tracking andquantifying health improvements in 2005.In fiscal 2012 alone, we improved nearly16 percent of our U.S. retail sales volume.Improvements include adding wholegrains, fiber and calcium, and reducingcalories, sugar, sodium and trans fat.In the U.K., we have removedartificial trans fat from foods, andwe are proceeding with our sodiumreduction program as part of ourpledge associated with the “ResponsibilityDeal,” a set of voluntary agreementscovering food, physical activity andhealth at work that is backed by theU.K.’s Department of Health.In Australia, we joined the AustralianFood and Grocery Council and otherfood companies to launch the HealthierAustralia Commitment in October 2012. Insupport of this commitment, General Millsand the other companies have pledgedto collectively deliver on targets thatinclude reducing sodium by 25 percentand reducing energy (as measured bykilojoules to address calorie consumption)by 12.5 percent by 2015. The commitmentalso includes educating consumers aboutbalanced diets and healthy, active lifestylesand promoting employee wellness.In Canada, we began a strategic processto address nutritional improvements toour product portfolio in 2010. During thefirst two years of this initiative, more than30 percent of our retail product portfolioin Canada was nutritionally improved orlaunched with a strong nutrition profile. Infiscal 2012 alone, more than 25 percentof retail volume in Canada qualifiedfor our “health improved” criteria, withIncreasing nutrients in key food groups while reducing sugar, sodium, fat and caloriesFY0516%FY0621%FY0733%FY0840%FY0945%FY10 FY11 FY1260% 64% 68%Percent Nutritional Improvement(U.S. retail sales volume)Tracking health improvementsWholegrainTransfatSugar Sodium CaloriesU.S.Remove trans fatU.K.Remove trans fatU.S.Reduce sodium by20 percent across top 10product categories by 2015U.K.Reduce sodium in food, helpingconsumers get closer to the2.4 grams per day maximumrecommended daily intakeU.S.Reduce sugar in kids’cereals to single-digitlevels per servingU.S.Increase whole grain:Every Big G cereal nowhas more whole grainthan any other singleingredient and containsat least 10 grams ofwhole grain per serving;more than 20 GeneralMills cereals deliverat least 16 gramsU.S.Reduce calories:Currently more than500 U.S. retail productswith 100 calories orless per serving;and more than 800 U.S.retail products with 150calories or less per servingAchieved goalKey to indicators: In progressor more of ourU.S. products havebeen nutritionallyimproved since2005.6501BGeneral Mills Global Responsibility 15
  • 18. Health Environment Sourcing Workplace Communitymeaningful increases in nutrients targetedfor increased consumption or decreasesin nutrients that are over-consumedin the Canadian population. We areanticipating similar achievements infiscal 2013 to help improve diet qualityin Canada in areas such as whole grain,fiber, sodium and heart-healthier fats.PR1, FP6, FP7Boosting whole grainsResearch shows that eating wholegrains as part of a healthy diet canhelp improve heart health, weightmanagement and diabetes managementwhile reducing the risk of some cancers.The USDA 2010 Dietary Guidelines forAmericans advise people to eat at leasthalf of all grains as whole grains andchoose products that name a wholegrain ingredient first on the label. In2012, General Mills reached a multiyearreformulation milestone across its portfolioof Big G cereals to ensure that every Big Gcereal now has more whole grain thanany other single ingredient. All Big Gcereals now contain at least 10 grams ofwhole grain per serving, and more than20 General Mills cereals deliver at least16 grams. This whole grain innovationwas accomplished while delivering thesame great taste consumers expect.All global cereal brands offered by ourCPW joint venture with Nestlé now haveat least 8 grams of whole grain per serving.CPW – which makes and markets cerealssuch as Fitness, Cheerios, Chocapicand Nesquik globally outside NorthAmerica – is the second-largest cerealprovider in the world. CPW is workingto increase levels of whole grain so it isthe main ingredient in all CPW cereals.WATCH VIDEOr Watch “The Benefits of WholeGrains” – one of five videos focusingon making half your grains whole. Thevideos were produced by the GeneralMills Bell Institute of Health andNutrition and other partners committedto promoting and supporting grains incollaboration with the USDA Centerfor Nutrition Policy and Promotion.Learn more aboutwhole grainss Our Pillsbury Chakki Fresh Atta is made with 100 percent whole grain wheat, providing fiber,iron and essential nutrients. Product information helps build customer awareness of the nutritionalvalue of whole grains.All Big G cerealsnow contain at least10 grams of wholegrain per serving.10gramsIn India, our PillsburyAtta with Multigrainscombines seven naturalgrains – wheat, soy, oats,maize, ragi, chana daland barley – with addediron, calcium and protein.General Mills Global Responsibility 16
  • 19. Health Environment Sourcing Workplace CommunityOur Cereal Partners Worldwide (CPW) jointventure with Nestlé makes and marketscereals under the Nestlé brand globally outsideNorth America. CPW announced specificcommitments in October 2012 to nutritionallyimprove about 5.3 billion portions of breakfastcereals in more than 140 countries.CPW is working to reduce the sugar content of20 Nestlé breakfast cereal brands popular withchildren and teenagers to 9 grams or lessper serving by the end of 2015. The changesmean that Nestlébreakfast cereals willhave a sugar reductionof up to 30 percentacross brands includingNesquik, Chocapic,Honey Cheeriosand Milo. In addition, CPW is making othernutritional improvements, including increasingcalcium to at least15 percent of therecommended dailyallowance (whichvaries in differentparts of the world)and reducing thesodium content of 20 breakfast cerealspopular with children and teenagers to135 mg or less per serving by the end of2015. Since 2003, CPW has removed morethan 9,000 tonnes of sugar and almost 900tonnes of salt from its recipes, while addingmore than 3.4 billion servings of whole grain.Cereals at single-digit sugar levelsReducing sugarGeneral Mills continues to reducesugar across our global productportfolio. For example, in 2009the company announced it wouldreduce sugar in all of its cerealsadvertised to children under age12 to single-digit grams of sugarper serving. Today, all GeneralMills cereals marketed to childrenare at 10 grams of sugar or lessper serving. Four varieties ofthese cereals, including HoneyNut Cheerios and CinnamonToast Crunch, contain 9 gramsof sugar per serving, down from11 to 15 grams of sugar in 2007.General Mills also has beenworking since 2004 in theU.S. to lower the sugar in ouryogurts advertised to childrenunder age 12. Since 2007, we’velowered the average sugar levelin Yoplait kid yogurts by morethan 21 percent and continue toimprove the nutrition profile ofour products while striving tomeet consumer taste preferences.KEY2012 Sugar level2007 Sugar level13g 13g07 0712 1210g 10g13g0713g07 1210g12g07 1210g12 12121212g 12g12g07 07079g 9g9g9gCereal Partners Worldwide nutritional improvements9g4g0g5g6g9g 9g6g3g9g2g3g1g9gGeneral Mills Global Responsibility 17
  • 20. Health Environment Sourcing Workplace CommunityReducing sodiumGeneral Mills has a broad commitmentto reducing sodium in our products whilemeeting consumer taste requirements.Around the world, consumers eat anaverage of 9 to 12 grams of salt a day.Many health authorities recommendreducing this level to around 6 grams – orabout a teaspoonful – a day. GeneralMills has steadily reduced sodium in ourproduct portfolio in many parts of theworld. We have a team of researchersdedicated to reducing sodium infoods through gradual reductions.In the U.S., General Mills committedin 2008 to trim sodium, on average, by20 percent in our top 10 categories by 2015.We are on track to meet this ambitious,industry-leading sodium reduction effort.This effort affects a significant portion ofour portfolio – products from snacks tosoups to side dishes. General Mills hasmade strong progress toward this goal withsodium reductions in fiscal 2012 acrossour product portfolio. In 2012, our ready-to-serve soup categoryachieved more than20 percent sodiumreduction four yearsahead of schedule. Wealso reduced sodiumby 30 percent or more in several ChexMix varieties and made significant stridesin other product categories, such as drydinners, canned vegetables, frozen pizzaand refrigerated dough. In fiscal 2012,General Mills had 1,641 U.S. retail SKUswith 480 mg or less sodium per serving.In the U.K., we have pledged as part ofthe Responsibility Deal to reduce salt infood – helping consumers get closer tothe 6 grams of salt per day (2.4 grams ofsodium) maximum recommended dailyintake. Our sodium reduction programis aligned to the U.K. Department ofHealth targets. Acceptable technicalsolutions have been identified for someproduct categories, enabling us to speedup reformulation activities. We continueto seek additional sodium reductionsin our remaining product categories.We also have implemented nutritionstandards for each brand to ensure thatsodium levels are a key considerationwhen developing new products.In Australia, we also have been reducingsodium in our portfolio, including ourOld El Paso products. These reductions helplay the foundation for our progress towardthe collective industry goal of reducingsodium by 25 percent by 2015 as part ofthe Healthier Australia Commitment.r In 2012, our ready-to-serve soup categoryachieved more than a 20 percent sodiumreduction – four years ahead of schedule. Wealso reduced sodium by 10 percent in a numberof Hamburger Helper dinners along with otherproducts in the meals category.r For the past five years, Green Giant has made consistent, steadysodium reductions across our range of vegetable products in Europe.In Sweden and Norway, we apply the keyhole symbol on our packagingto highlight healthier options in the canned vegetable category.v Green Giant islowering the salt in itscanned vegetables by5 to 35 percent acrossEurope, Russia, Africaand the Middle East.This sodium reductioneffort has alreadybeen implemented in90 percent of GreenGiant products –including sweet corn,artichokes and heartsof palm – in thesemarkets.In the U.S., General Mills hascommitted to trim sodium,on average, by 20 percent inour top 10 categories by 2015.20%Sodiumg/100g0.300. (UK, FR, MENA, BENIT, RU, ASIA)Low salt (SP, NO)No salt (UK, FR, SP, MENA)Sodium reduction – cornGeneral Mills Global Responsibility 18
  • 21. Health Environment Sourcing Workplace CommunityReducing trans fatIn recent years, General Mills hassuccessfully reformulated a number ofproducts to reduce trans fat, achievingtrans fat reductions in more than 150 ofour U.S. retail products since 2005. In fiscal2012, General Mills continued to removetrans fat by reformulating additionalPillsbury biscuits and crescents – allPillsbury refrigerated biscuits and crescentsnow have zero grams labeled trans fat.In the U.K., we have achieved our goalof removing trans fat from partiallyhydrogenated oils in our products,meeting the trans fat eliminationtarget of the U.K. Responsibility Dealpledge. In addition to these ingredientselection and reformulation efforts, wehave put in place nutrition standardsensuring continued absence of transfat from our products in the U.K. r Our Old El Paso line of products in Europehas achieved a 39 percent saturated fatreduction and 43 percent total fat reduction.Reformulating productsWe continually reformulate our productsto meet consumer preferences and offerhealthier options. For example, in thesummer of 2012, we modified severalvarieties of our Yoplait yogurt. We removedhigh fructose corn syrup from our OriginalStyle Yoplait, Yoplait Light, Light Thick &Creamy and Yoplait Lactose-Free (alongwith our new Fruplait and Simplait yogurtoptions). We also added more fruit toour yogurt varieties that contain piecesof fruit, reduced the calories in YoplaitLight to 90 per serving, and switched tonatural colors, flavors and sweetenersin Original Style Yoplait. In addition, weredesigned our packaging (read moreabout our Yoplait packaging reductions inthe Environment section of this report).We modified Yoplait Lightso it now contains 90 calories– 10 less calories than theprevious formulation –as well as zero grams offat and 20 percent of therecommended Daily Valueof calcium and vitamin D.Yoplait Light is the onlylight yogurt endorsedby Weight Watchers®.WATCH VIDEOr We listened and responded tocustomer feedback about Yoplait yogurt.r In the U.S., all Pillsbury flaky refrigeratedbiscuits now have zero grams labeledtrans fat. Many varieties of these biscuitshave lowered calories as well.“At General Mills we are committed to continuous health improvements. We alsoknow that food is absolutely not nutritious unless people are eating it. The win ininnovation is in providing healthier products that are affordable and taste great.”– Maha Tahiri, Senior Technical Director, General Mills Bell Institute of Health and NutritionYoplait, Simplait and Fruiplait are trademarks of YOPLAIT MARQUES (France) used under license.General Mills Global Responsibility 19
  • 22. Health Environment Sourcing Workplace CommunityModifying school mealsGeneral Mills also is responding tochanging U.S. Department of Agriculture(USDA) standards for K-12 schoolmeals, which include increasing fruitsand vegetables, serving items with zerograms of trans fat and meeting wholegrain requirements. Under the newstandards, school meals also must meetspecific calorie ranges and sodium targets.The new requirements apply to schoollunches during the 2012/13 school year,while the majority of changes to schoolbreakfasts take effect beginning July 2013.General Mills is well-positioned to meetthese new requirements while continuingto provide items that offer easy menuplanning and preparation. Already, we have70 products that meet the USDA wholegrain criteria, a full portfolio of productswith zero grams trans fat that can be servedthroughout the school meal program. Wealso have convenient breakfast items –such as Pillsbury Mini Pancakes, MiniWaffles and the new Pillsbury SunriseFlatbread – that provide schools a quickway to serve hot breakfast favoriteswhile meeting the new requirements.Offering nutritious new productsGeneral Mills continues to provideconsumers with healthful newproduct options. In fiscal 2012,new products – such as FiberOne 90 Calorie Brownies, MultiGrain Cheerios Peanut Butterand Nature Valley Protein bars –generated 5 percent of GeneralMills’ U.S. retail segment sales.Green Giant SeasonedSteamers frozenvegetables in sixvarieties are madewith seasoningblends – includingrosemary, oregano,honey and parsley – thatboost flavor withoutadded sauces.Yoplait Greek 100 hastwo times the proteinof regular yogurt – with100 calories. YoplaitGreek 100 is the onlyGreek yogurt endorsedby Weight Watchers®.Cascadian FarmAncient Grains Granolaorganic cereal combinesquinoa, spelt and kamutkhorasan wheat withgranola, providing anexcellent source offiber with 5 grams ofprotein and 35 gramsof whole grain.LÄRABAR über sweetand salty Fruit & Nutbars are gluten-free andcontain 9 ingredients.Gluten Free AppleCinnamon Chex cerealhas 10 grams of wholegrain per serving and noartificial colors or flavors.Yoplait LactoseFree yogurt provides20 percent of theDaily Value of calciumand vitamin D.Striving to offer products with more whole grain, more calcium, more vegetables and fruit, reduced sodium, less fat, fewer caloriesNew options for limited dietss Fiber One 90 Calorie Browniesprovide 20 percent of therecommended Daily Value of fiberwith 5 grams of fiber per serving.r General Mills products help schools serve meals that meet new USDA requirements.Nutritious new productsOur summer 2012 product launches included:General Mills continued to expand our offerings of gluten-free and lactose-free products, making it easier for consumersto find the nutrition attributes they seek, including:General Mills offers more than 300 gluten-freeproducts, including gluten-free versions ofBetty Crocker dessert mixes and frostings, agluten-free version of Bisquick pancake andbaking mix, and five varieties of Chex cereals.1CGeneral Mills Global Responsibility 20
  • 23. Health Environment Sourcing Workplace CommunityEducate consumers2Promoting better healthGeneral Mills believes that in additionto delivering a range of healthful andbetter-for-you products, we also canhelp to raise awareness about theimportance of achieving a balance of goodnutrition and physical activity throughhealthy lifestyle choices. In the U.S., wesponsor Champions for Healthy Kids, aprogram promoting healthy nutritionand fitness for America’s youth (learnmore in the Community section).In 2012, we joined in a strategic partnershipwith the USDA Center for Nutrition Policyand Promotion to help promote dietaryguidelines for Americans. As part of thiscombined effort between governmentand industry to promote nutrition inthe context of the Dietary Guidelinesfor Americans 2010, our Bell Institute ofHealth and Nutrition helped equip healthprofessionals with information aboutthe latest science and practical nutritiontips. Learn more at ChooseMyPlate.gov.General Mills also is a member ofthe Healthy Weight CommitmentFoundation, an industry-led coalition ofmore than 200 organizations focusedon combating childhood obesity.PR4, FP8Encouragingconsumption of fruitsand vegetablesAcross Europe and the U.S., General Millsis helping promote consumption of fruitsand vegetables. Our campaign to leveragethe popularity of the Jolly Green Giant toencourage families to eat more vegetableshas expanded from the U.K. and Franceto the U.S. In France, we help promote theProgramme National Nutrition Santé withthe “5 par jour” (5 a day) message online,on product packaging and in stores. Inthe U.K., General Mills supports the U.K.Department of Health’s Fruit and Vegetablepledge as part of the Responsibility Dealthrough media campaigns and onlineefforts promoting the “5 a day” message,including providing recipe ideas andpromotion of healthy lifestyle habits.PR4, FP8Educating consumers around the world about nutrition and fitnesss In October 2012, kids interacted with a virtual Jolly Green Giant during an event atNew York City’s Grand Central Terminal promoting the nutritional benefits of eating vegetables.r OurGreen Giant campaign promotesvegetable consumption in France.2A“At General Mills, we notonly provide consumerswith a range of healthfulproducts – we also helpraise awareness about theimportance of making healthylifestyle choices. Through ourChampions for Healthy Kidsprogram, our participationin the Healthy WeightCommitment Foundation andother partnerships, we areworking to promote overallhealth by balancing goodnutrition and physical activity.”– Kim Nelson, General Mills SeniorVice President, External Relations andPresident, General Mills FoundationGeneral Mills Global Responsibility 21
  • 24. Health Environment Sourcing Workplace CommunityCombining nutritionand fitnessGeneral Mills supports online resourcesthat help consumers make more healthychoices about nutrition and exercise. In theU.K., we promote physical activity throughour Nature Valley brand in partnershipwith Walk for Life, part of the Change4Lifemovement that encourages families andadults to eat well, move more and livelonger by making small lifestyle changesthat add up to big health benefits. OurU.K. Nature Valley website now featuresdetails of more than 2,000 free walksand fitness insights – consistent withour brand and our participation in theU.K. Responsibility Deal pledge. NatureValley promotes healthy, active lifestylesfueled by whole grain consumption.In Australia and in the U.S.,we support TogetherCounts, an online programpromoting energy balance.Launched in the U.S. by theHealthy Weight Commitment Foundationto help reduce obesity – particularlyamong kids – by 2015, Together Countsis now being used as part of the HealthierAustralia Commitment as well. TogetherCounts encourages families to eat andexercise together regularly to achievehealthy weight through energy balance –matching calories in with calories out. In theU.S., we also support EatBetterEarly.com(featuring recipes, nutrition tips, cookingtips, and information about whole grains)and LiveBetterAmerica.com (featuringrecipes, tips for healthy living, Food 101glossary of fruits and vegetables, couponsand a blog from a range of contributors).PR4, FP8Communicatingnutrition informationon packagingGeneral Mills’ product packaging providesclear nutrition information for consumers.U.S.: Currently, more than half of our U.S.products feature front-of-package labelingand, by early 2014, all of them will. The“Nutrition Keys” are a set of standardicons including information about calories,saturated fat, sodium and total sugars –designed to make it easier for consumers tomake informed food choices in the groceryaisle. All of our Big G cereal boxes alsodisplay grams of whole grain per servingso consumers can see how cereal helpsthem meet dietary recommendations.We were also the first to use a “contain”statement to highlight allergen informationboldly on our product information panels.Canada: In Canada, we participate in theNutrition Facts Education Campaign, acollaboration between Food & ConsumerProducts of Canada and Health Canadathat has helped increase consumerawareness and use of the “% Daily Value,”a component in the Nutrition Facts table.Europe: In Europe, we joined 11 otherleading food and beverage manufacturersin November 2012 in reaffirming ourcommitment to harmonized front-of-packnutrition labeling across all markets in theEuropean Union (EU). The commitmentwill ensure that consumers have accessto consistent, meaningful nutritionalinformation on products, includingcontinuing to display calorie information onthe front of packages. Currently, 92 percentof our products across all EU marketsfeature Nutrition Keys printed on thepackaging. We began this labeling in 2008.FP8r Within six months after its launch, 78 percentof the more than 90,000 visitors to the NatureValley U.K. website viewed informationabout local walks.Nature Valley promoteshealthy, active lifestylesfueled by whole grainconsumption.r InEurope,92percentofourproductsfeatureNutritionKeysonthepackaging.Calories1126%Sugars2,5g3%Fat0,3g<1%SaturatesTrace<1%Sodium0,2g8%Each portion containsof an adult’s Guideline Daily AmountCalories112Per portionGeneral Mills Global Responsibility 22
  • 25. Health Environment Sourcing Workplace CommunitySupporting responsible marketingGeneral Mills’ marketing guidelinesunderscore our commitment to responsiblemarketing and advertising by statingthat all marketing should respect threekey steps to healthier living: balance,moderation and physical activity. We takeparticular care around advertising directedto children – including prior review by theBetter Business Bureau’s Child AdvertisingReview Unit in the United States. GeneralMills has had child marketing guidelinesin place for more than 30 years, and theyare reviewed and updated annually bythe company’s Child Marketing ReviewCouncil. These guidelines are reviewedannually with the company’s CEO and theChief Operating Officers of the company’sU.S. and International operating units.We adhere to strict internal andindustry guidelines in producing andreviewing ads to ensure they areappropriate for the intended audience.Along with other companies in theindustry, we have also made commitmentsto self-regulation around the world –including advancing pledges to ensureour advertising meets specific standardsin countries from the U.S. and the EU toBrazil, Canada, India and Singapore.In July 2011, for example, we joined16 food and beverage companies inestablishing uniform nutrition criteria forfoods advertised to children under age12 in the U.S. – strengthening industryguidelines that we had helped put in placein 2007. We are on track to comply withChildren’s Food and Beverage AdvertisingInitiative (CFBAI) guidelines by the Dec. 31,2013, deadline. (Find more details aboutGeneral Mills’ commitments regardingadvertising to children in the U.S.)In Canada, we participate in the CanadianChildren’s Food and Beverage AdvertisingInitiative (CAI), a voluntary initiativeby 19 of Canada’s leading food andbeverage companies to promote andsupport healthy dietary choices andhealthy lifestyles to children under 12years of age. The 2011 CAI Compliancereport includes General Mills.As a founding member of the EU pledge,a voluntary initiative by leading food andbeverage companies, General Mills andother signatories agree not to advertiseany product that does not meet specificnutrition criteria to kids under 12. InNovember 2012, the EU pledge addedharmonized nutrient profiles to the EUplatform for diet, physical activity andhealth. In the future, only foods andbeverages meeting these profiles will beadvertised to children. The EU pledgealigns with the International Food andBeverage Alliance’s pledge to establishglobal minimum standards for marketingto children in accordance with theWorld Health Organization (WHO)framework. WHO has identified childmarketing as a regulatory priority.PR6Participating in pledges around the world that address advertising to childrenGeneral Mills is among 14 of the world’s leading food companiesto sign the Singapore Food & Beverage Industry ResponsibleAdvertising to Children Pledge – the first pledge of its kind inSingapore. Beginning in January 2013, these companies will advertiseto children only products that meet agreed-upon nutritional criteria.142B“Our goal is to innovate to make people’s lives healthier, easierand richer. As an industry leader, we are also committed tomaintaining the highest standards for responsible marketingpractices, especially those directed to children. Each year, weproactively establish industry-leading product standards andmarketing guidelines to ensure we deliver on our commitment.”– Mark Addicks, Chief Marketing Officer, General MillsGeneral Mills Global Responsibility 23
  • 26. Health Environment Sourcing Workplace CommunityAdvance global food safety3Adhering to strict food safety processesAs a consumer foods company, GeneralMills is committed to the safety ofthe products we produce and marketaround the world. That commitment isfundamental to the way we do business.This emphasis on food safety and qualityhas long addressed issues such asspoilage and contamination, as well asallergenicity and ingredient simplification.Strategy and processOur food safety risk managementstrategy is based on three core elements:prevention, intervention and response.We work hard to prevent problems bybuilding in quality and food safety fromthe start of our product design process.We maintain stringent internal standardsand requirements to ensure safetyacross all processes and operations. Toverify prevention, we conduct focusedaudits, risk-based surveillance andtesting. We continually review ourprocesses and procedures. Should acompromised product reach the market,we have well-established processesthat guide our immediate response.More than 50 years ago, General Millsdeveloped the Hazard Analysis andCritical Control Points (HACCP) processwith NASA. HACCP details a process forensuring food safety by identifying criticalstages in the production process in order tominimize or eliminate potential food safetyissues. Today, the comprehensive HACCPpreventive process is not only requiredof General Mills’ businesses aroundthe world, it also has become the foodindustry’s gold standard and the backboneof many countries’ food safety regulations.Investment andcertificationGeneral Mills adopts and applies thesame high safety and quality standardseverywhere we do business. All employeesare stewards of our brands, and foodsafety is integral to this mission. Wespend five times the amount on foodsafety we spent five years ago andannually review areas where capital isrequired to address emerging needs.More than 90 percent of our totalworldwide volume – including productsproduced at our own plants and at co-manufacturing sites – is manufacturedin facilities audited and/or certified byan independent third party, accordingto publicly available and recognizedstandards. In 2012, our plants aroundthe world were inspected by numerouslocal, state, federal and/or provincialregulatory agencies; no official actions ornoncompliance issues of significance wereidentified. We had a total of five recalls in2012, all of which were voluntary and didnot result in any consumer illness or injury.Governanceand auditingGovernance of General Mills food safetyand regulatory matters begins with acorporate policy signed by our CEO. Thiscorporate policy is further supported byan additional set of 16 detailed policieswith accompanying standards andguidance documents providing moregranular requirements. These food safetypolicies are developed by a global teaminvolving subject matter experts relevantto the policy. Policies are signed by thesenior leader(s) in the functions primarilyresponsible for assuring compliance. Thesepolicies are global – we have the sameexpectations regardless of country – andcover a broad range of food safety areas,including: regulatory compliance; trace andrecall; labeling; claims; physical, chemicaland biological hazards; transportation; goodmanufacturing practices and sanitation.The policies form the foundation for ourinternal audits, including collaborationswith our global internal auditing group.Setting high standards for prevention, quality and investmentr All General Mills owned facilities receivecertification based on audits from anindependent third-party service provider –a strategy we adopted more than 50 yearsago and continue to refine.3AWe spend five times theamount on food safety wespent five years ago.5timesGeneral Mills Global Responsibility 24
  • 27. Health Environment Sourcing Workplace CommunityPartnering to increase food safetyIn recent years, we have dramaticallyincreased our supplier and co-manufacturer audits worldwide to helpensure the safety of the raw materials(ingredients and packaging) we use inour products, including those productsproduced by non-General Mills locations.In fiscal 2012, we directly conducted morethan 350 supplier and 150 co-manufactureraudits worldwide. We also encouragethird-party audits and/or certification, suchas the Global Food Safety Initiative, as anadditional preventive control measure.In fiscal 2011, we held our first supplierschool in the U.S., reaching our largestbase of suppliers. We have continued thisstrategy, conducting a supplier schoolin Asia in 2012. In addition, we directlyhosted several webinars covering topicssuch as biological and physical hazardcontrols, allergen management and plantsanitation. We are continuing this well-received strategy in 2013, kicking off witha supplier school in Europe in March.FP5Increasing supplier and co-manufacturer audits, training and awareness3BMost canned food and drink products on themarket today use BPA (bisphenol A) in thecan lining or lid to protect food from spoilingand to prevent metal food packaging fromcorroding. Scientific and governmental bodiesworldwide have studied BPA and concludedthat the weight of evidence supports its safety.Despite broad scientific and regulatoryconsensus on the safety of BPA, weknow that some consumers wouldprefer to see alternatives – and GeneralMills is actively working with suppliersand manufacturers to develop and testcan linings that do not use BPA.Technical challenges remain, but progressis being made. For example, General Millsidentified a safe, viable alternative for our MuirGlen tomatoes in the United States, and withthe fall 2011 tomato harvest, we successfullytransitioned Muir Glen tomato productsto cans with linings that do not use BPA.As viable alternatives prove safe and effectivefor other products, we expect can suppliersand the food industry, including General Mills,in response to consumer interest, will convertto alternatives that do not incorporate BPA.BPAWe conducted more than350 supplier and 150co-manufacturer auditsworldwide in 2012.500+We encourage third-party audits and certificationas additional preventive control measures.General Mills Global Responsibility 25
  • 28. ENVIRONMENTOur goal is to continually reduceour environmental footprint. We focusour efforts on areas where we can havethe greatest impact, both within ourown operations and outside of them,primarily in agriculture and ingredientproduction. Across our global operations,we work to reduce our natural resourceconsumption. Additionally, we focuson sustainably sourcing the rawmaterials we use in our products.Our strategiesReduce resourceusage in ouroperationsIncreasesustainabilityof ingredientsOur sustainability mission isto conserve and protect thenatural resources upon whichour business depends.
  • 29. General Mills Global Responsibility 27OverviewOur Environmental Sustainability Metrics – We continue to work toward our fiscal 2015 goal of achieving significant, measurable reductions in energyusage, greenhouse gas (GHG) emissions, water usage and other sustainability metrics. In fiscal 2012, our rates improved across all metrics with theexception of water usage. This increase was due to slightly decreased product volumes across our business as well as changes to product mix, whichadversely impact all rate-based metrics. We exceeded our packaging goal and have since reset our 2015 goal to reflect this performance. In absoluteterms, we improved across all dimensions (see page 76 for detail). We remain committed to making progress toward our goals.EN5, EN18Health Environment Sourcing Workplace CommunityPerformance dashboard* Energy, GHG emissions, water and solid waste generation absolute and rate-based data in this section are from wholly owned production facilities globally, excluding recently acquired Yoki andYoplait International. Transportation fuel use data covers outbound shipments in the United States by our logistics service providers. Packaging improvement data are global.** Water usage rate goal and progress are based on fiscal 2006 baseline data. Transportation fuel usage rate and packaging improvement rate goals and progress are based on fiscal 2009 baseline.*** FY2011 rate adjustments reflect improvements in data gathering and tracking methodology.FY2015 target (% ratereduction from FY2005) *,**Progress through FY2011(% rate reduction from FY2005)***Progress through FY2012(% rate reduction from FY2005)Energy usage rate*(kilowatt hours/metric ton of product)GHG emissions rate*(metric tons CO2e/metric ton of product)Water usage rate*,**(cubic meters/metric ton of product)Transportation fuel usage rate*,**(% fuel reduction/metric ton of product shipped)Packaging improvement rate*,**(% of packaging volume improved)Solid waste generation rate*(metric tons/metric ton of product)20%20%20%50%35%60%8%9%11%35%15%27%11%10%10%40%17%52%(increased from 40%)
  • 30. Our approach: measure & reduceWe track our environmental footprint, report progress and work to reduce our global impactWe measure and report our progressaccording to key performance indicators(see table on page 27) as well as othermetrics, making changes in our processesand facilities to improve our environmentalperformance. We affect these improvementsthrough our environmental managementsystem, which follows a “plan, do, check,act” approach. At each facility, we usescorecards to track and report progress.To reduce our environmental impact, wepursue two key business strategies. Thefirst is Continuous Improvement (CI),which focuses on waste elimination andprevention. CI encourages employeeownership of company processes – fromplant production workers to our executivemanagement team – to eliminate andprevent waste, including time and effort.The second is Holistic Margin Management(HMM), which calls on cross-functionalteams to understand the value drivers forour brands and eliminate nonvalue-addedcosts. In addition to improvements inenvironmental performance, savings fromthese initiatives enable us to offset inflationincreases in our raw material costs which,in turn, helps us to keep our consumerprices stable and to invest in innovation.Our companywide goal – which includesenvironmental and non-environmentalinitiatives – is to accrue US$4 billion inHMM savings between fiscal 2010 and2020. To date, sustainability initiatives havecontributed substantially to our progressagainst this goal. For example, by focusingon landfill diversion, our North Americanplants returned more than US$8 millionin recycling income to their bottom linesin fiscal 2012. Additionally, our energyreduction projects in fiscal 2012 resultedin a cost savings of US$1.3 million. Since2005, our North American operations havesaved more than US$55 million by usingproactive environmental management, CIand HMM tools to make our plants moreefficient and environmentally sustainable.In fiscal 2012, we commissioned a Trucoststudy of natural resource use acrossour value chain. We recognize that themajority of our overall environmentalimpact occurs upstream and downstreamof our own operations. Results ofthat study are detailed on page 41of this report’s Sourcing section.EN18OrganizationalresponsibilityAt General Mills, our Chairman andCEO has ultimate accountabilityfor environmental sustainabilityperformance, which is included in hisannual performance objectives. Heconvenes the Sustainability GovernanceCommittee three times per year, madeup of operating and functional heads.The committee reviews and approvesstrategies, programs and key investments.In addition, our Chief SustainabilityOfficer, who reports to the Senior VicePresident of Supply Chain and the SeniorVice President of External Relations, leadsour global environmental sustainabilityinitiatives. Executives in Supply Chain,External Relations and Sustainability haveresponsibility to develop, coordinate andexecute programs to achieve corporate-wide goals. To ensure ownership acrossthe company, these goals are brokendown and assigned annually to therelevant executives within businessunits, supply chain and productionfacilities. The Board of Directors’ PublicResponsibility Committee regularlyreviews the company’s sustainabilityobjectives, strategies and performance.WATCH VIDEOJerry Lynch, Chief SustainabilityOfficer at General Mills, highlightsthe role of employees in championingsustainability efforts.EnvironmentalmanagementapproachPLAN: Identify our key impactsand develop thorough tasklists to address them.Do: Leverage multiple systemsto complete the work.check: Complete internal andexternal assessments and audits.act: Utilize the resultsto improve performanceand update our tasks.Since 2005, our NorthAmerican operationshave saved more thanUS$55 million throughproactive efforts to makeplants more efficientand sustainable.$55millionGeneral Mills Global Responsibility 28Health Environment Sourcing Workplace Community
  • 31. Training, monitoringand follow-upOn a quarterly basis, our Global Safetyand Environment team reviews thecompany’s compliance status andprogress toward sustainability goalswith senior management, productionfacilities and business units. GlobalSafety and Environment teams at ourplants hold regular meetings to sharebest practices about environmentalinitiatives and compliance requirements.In each production facility and targetedcommercial units, we conduct trainingannually with relevant personnel. In fiscal2012, we performed scheduled safetyand environmental audits at many of ourwholly owned facilities around the world.Reduced total energy use by morethan 172 million kilowatt hoursLowered GHG emissionsby about 60,000 metric tonsCut water usage by roughly300,000 cubic metersReduced solid waste generatedby about 17,000 metric tonsReceived no significant complianceviolations, fines or penaltiesOur strategies and actionsReduce resource usagein our operationsA Reducing energy usageB Reducing GHG emissions andaddressing climate changeC Reducing water usageD Reducing solid waste generationE Reducing transportation fuel usageF Reducing packaging footprintIncrease sustainabilityof ingredientsA Improving sustainability of rawmaterials and watershedsp.30p.3912Significantreductions in 2012In 2012, we exceeded our 2015 packagingimprovement goal and have since resetour 2015 goal to reflect this performance.r Yoplait fridge pack: reduced, recycled, and labeled for recycling. In 2012, we reduced the weight of theYoplait cup, reduced the weight of the paperboard carton, converted the paperboard carton from virgin torecycled paper, and printed a label on the carton indicating the recyclability of each packaging component.General Mills Global Responsibility 29Health Environment Sourcing Workplace Community
  • 32. Reduce resource usage in our operations1 Reducing energy usageAcross our businesses worldwide,we are making improvementsto the energy efficiency of our plantsand processes. We continue to focuson reducing energy consumption in ouroperations. Our energy audit programcollects and shares sustainability bestpractices across our production facilities,such as dryer and oven optimization,building heating and cooling systemimprovements and lighting replacementinnovations. The combined savingsfrom individual projects at each of ourplants adds up to significant energyreductions across the company.During 2012, we used 2.4 billion kilowatthours of energy in our wholly ownedproduction facilities, 7.0 percent less thanin 2011. During this time, we used 514kilowatt hours per metric ton of product,a decrease of 2.7 percent over 2011.These decreases were primarily due to acontinual focus on energy conservationand developing processes around energymanagement. Main sources of energyincluded natural gas (54 percent of thetotal) and electricity (45 percent of thetotal). We remain committed to meetingour goal of a 20 percent reduction by2015, using 2005 as our baseline year.EN3, EN4, EN5Energy reductionprocessIn the United States, we are using anew process to drive energy efficiencyin our Big G cereal sites, which accountfor more than 40 percent of our globalenergy consumption. In 2012, weallocated resources – including addingdedicated, energy-focused engineersat each of our Big G cereal productionfacilities – and developed an internalprocess focused on energy reduction.Through this process, we systematicallyanalyze energy use at each facility anddevelop improvement plans. We havepiloted the approach at seven sites, andin fiscal 2013 will rollit out across our otherdivisions to accelerateenergy reductionperformance. Theresults are significant– participating sitesimproved theiraverage annualenergy use reduction rate (per poundof production) from 1.4 percent to8 percent during the first six months ofthe initiative (May-November 2012).Our comprehensive energy managementprocess improves plantwide performancethrough a range of actions at eachfacility. While some changes providesizable savings on their own, we alsorealize the cumulative contributionof smaller steps toward our energygoals. For example, our Big G plant inAlbuquerque, New Mexico, identifiedenergy savings opportunities includingImproving the energy efficiency of our facilities around the world1Ar Our Big G plant in Covington, Georgia,first piloted the energy reduction process,decreasing the energy use rate (per poundof production) by 29 percent and saving anestimated US$5 million in energy over five years.Energy usage, 2005 - 2012Direct IndirectBillionkWh3. 2007 2008 2009 2010 2011 2012 2015GOALkWh/metrictonofproduct8%General Mills Global Responsibility 30Health Environment Sourcing Workplace Community
  • 33. shutting down dryers in our productionarea, eliminating compressed air coolingin the packaging process, turning offlights in offices, and adjusting controlsfor heating and cooling the entire facility.Together, these changes are saving 2.6million kilowatt hours of energy annually.We are using a similar energymanagement approach at our plant inRooty Hill, Australia, where we installedhigh-efficiency lighting that is expectedto save 865,000 kilowatt hours peryear, decreasing GHG emissions by 917metric tons of carbon dioxide equivalentand saving US$133,000 annually. Wecompleted installation of the newoffice lighting in July 2012, followed byfactory lighting in September 2012. Thesavings have been validated as part ofa rebate program from the local energyprovider, state and federal governments.EN7r In Australia, high-efficiency lighting better illuminates the workspace while saving energy. Thesystem uses programmable logic controllers and zoning to further reduce energy consumption.Many of our facilities use renewable sources of energy, such as biomass, wind and solar power.At our San Adrián plant in northern Spain, nearly 4,500 solar panels generate almost 1.5 millionkilowatt hours of electricity annually, which is directed to the power grid. Completed in July2012, the facility is our first in Europe with solar power (we already have solar panel installationsat facilities in the United States and China). The San Adrián plant receives all of its electricity –representing one-third of its energy overall – from renewable sources, including wind power. Theplant also has significantly trimmed its energy and water usage rates in recent years. Learn moreabout the San Adrián solar panel project in this Triple Pundit interview with our plant manager.Renewable energy: solar panels in Spainv Solar panels generateelectricity at our plant inSan Adrián, Spain. Thisfacility also has achievedISO 50.001:2011 EnergyManagement Systemcertification.Sustainable building designIn September 2012, we opened the largest LEED Gold certifiedfacility of its kind in North America: our warehouse and distributioncenter in Fort Wayne, Indiana. This new facility received certificationfrom the U.S. Green Building Council because environmentalsustainability has been integrated into the building’s design,construction, operation and maintenance. In January 2012, anexpansion at our production facility in Albuquerque, New Mexico,also earned LEED Gold certification. Five General Mills buildingshave attained LEED Gold certification since 2010.s ATaste of General Mills blog, September 2012, “A solid gold facility”General Mills Global Responsibility 31Health Environment Sourcing Workplace Community
  • 34. Reducing GHG emissions and addressing climate changeClimate change is a seriousissue with broad implications foragriculture and the world’s food supply.We see a clear role for responsiblecompanies to help mitigate the riskof climate change. Our primary focusis reducing our GHG emissions in ouroperations through improved energyefficiency and the use of low-carbonenergy sources (see pages 30-31).The majority of our Scope 1 andScope 2 GHG emissions are from burningfossil fuels at production plants andpurchased electricity. Energy sources weuse include natural gas, fuel oil, propaneand electricity generated by varioussources. We promote energy efficiencythroughout our value chain and considerthe climate impacts of packagingdesign and raw material inputs.During fiscal 2012, we generated936,000 metric tons carbon dioxideequivalent (CO2e) of GHG emissions inour wholly owned production facilities,5.9 percent less than in 2011. Thisincluded 242,000 metric tons CO2e ofScope 1 emissions and 694,000 metrictons CO2e of Scope 2 emissions. GHGemissions were 0.2 metric tons CO2e permetric ton of product, down 1.5 percentfrom 2011. These decreases wereprimarily due to energy conservation.We remain committed to meeting ourgoal of a 20 percent reduction by 2015,using 2005 as our baseline year.EN16, EN17In addition to reducing GHG emissionsfrom our own operations, we also workto decrease emissions across our valuechain. Regarding our Yoplait yogurtbusiness, General Mills is a memberof the Sustainability Council of theInnovation Center for U.S. Dairy – whichhas committed to the voluntary goalof reducing GHG emissions for fluidmilk by 25 percent by the year 2020(using 2007-2008 as a baseline) – andthe Sustainable Agriculture Initiative(SAI) in Europe. We are also helpingto measure GHG emissions stemmingfrom U.S. row crops through ourcollaboration with Field to Market. Learnmore about our efforts to help manageGHG emissions across our supply chainin the Sourcing section of this report.Deforestation and forest degradationalso contribute to climate change.General Mills has policies in place tohelp slow the impact of these trends. Forexample, we have public commitmentsabout our sourcing of ingredients such aspalm oil, detailed in our Sourcing section.EN18Managing the environmental impact of our operations1BGeneral Mills has participated in the Carbon Disclosure Project (CDP)since its inception in 2000. We regularly report our GHG emissions andclimate change strategies through this initiative. In 2012, CDP compileddata from 4,100 organizations in 60 countries around the world.Greenhouse gas emissions, 2005 - 2012Scope 1 Scope 2MetrictonsCO2e1,200,0001,000,000800,000600,000400,000200,00000. 2007 2008 2009 2010 2011 2012 2015GOALMetrictonsCO2e/metrictonofproductReducing emissionsWe reduce GHG emissions inour operations by improvingenergy efficiency and usinglow-carbon energy sources.General Mills Global Responsibility 32Health Environment Sourcing Workplace Community
  • 35. Reducing water usageIn food production, water isused as an ingredient, to coolor heat various production operations,and to clean and sanitize equipment.We track water usage in each of ourproduction facilities to identify areasof high usage and target opportunitiesfor conservation. We are working withvendors and partners to develop waterbalance processes to help our facilitiesidentify opportunities to decreasewater use. We continue our effortsto reduce water usage by makingimprovements to the efficiency of ourplants and processes around the world.During 2012, we used 10 million cubicmeters of water in our wholly ownedproduction facilities, 2.9 percent lessthan in 2011. Eighty-two percent of totalusage was from municipal sources, andthe other 18 percent was groundwater.The decrease in the absolute amount wasprimarily due to our water conservationefforts and reuse projects. In 2012,our water consumption rate was 2.1cubic meters per metric ton of product,an increase of 1.1 percent over 2011,primarily due to change in the mix ofproducts sold. We are renewing efforts tomeet our goal of a 20 percent decreaseby 2015, using 2006 as our baseline year.Water recyclingsaves 380,000 cubicmeters each yearWe fund scalable sustainability projectsthat drive us toward our corporatefootprint reduction targets. Two examplesof this approach include investmentsto reduce water use at our productionfacilities in Vineland, New Jersey, andCedar Rapids, Iowa. In both cases, weare reusing water only for cooling andcleaning during the production process,separate from water in food products.At our soup facility in Vineland, we arereusing water to save 190,000 cubicmeters of water per year – a 14 percentannual reduction in the plant’s waterusage. We are also recovering heat energyto save 14.7 million kilowatt hours ofenergy (natural gas), representing a13 percent annual reduction in energyusage. The plant team achieved theseresults by using recycled water tocool soup cans during the final stageof canning. In addition to reducingwater usage and energy consumption, thenew approach has led to an estimatedUS$600,000 in combined annual savings.At our cereal facility in Cedar Rapids,a filtration system installed in 2012has reduced water usage by 190,000cubic meters per year. Previously, waterwas used only once; the new systemrecirculates up to 75 percent of the water.As a result, the team predicts that waterusage will decrease by nearly 40 percent,equal to about 2 percent of General Mills’entire global water use. The system alsowill save US$220,000 annually in waterand sewer costs. The savings at thesetwo plants are a result of plant-drivenCI initiatives.EN10, EN26Lowering consumption and reusing water1Cr Employees helped General Mills earn an Environmental Quality Award from the New JerseyBusiness & Industry Association for the Vineland plant’s water and energy conservation system.Water usage, 2006 - 2012Millioncubicmeters1210864203. 2007 2008 2009 2010 2011 2012 2015GOALCubicmeters/metrictonofproductAt our Cedar Rapids cereal plantin Iowa, a new water filtrationsystem recirculates up to75 percent of the water usedto clean emissions from the air.75%General Mills Global Responsibility 33Health Environment Sourcing Workplace Community
  • 36. Reverse osmosissystem saveswater in MexicoAt our facility in Irapuato, Mexico, weinstalled a reverse osmosis (RO) waterrecovery system that saves morethan 3,000 cubic meters of water peryear. The RO system purifies waterby removing salts using membranes,creating a pure water stream that thefacility uses in the food productionprocess. The remaining water is used forsanitation after treatment with ultraviolet(UV) light as a safety precaution.Looking at our broader environmentalfootprint, the majority of water requiredto bring our products to consumers isused upstream of our direct operations,primarily in agriculture. Across ourvalue chain, we are implementing ourglobal water stewardship strategyto improve the health of watershedsaccessed by our operations. Learnmore in the Sourcing section.EN9, EN10r We are saving more than 3,000 cubic meters of water per year at our facility in Irapuato, Mexico.WATCH VIDEOr At our plant in Covington,Georgia, an onsite facility treatsfood processing wastewater sothoroughly that the water canbe fully reused, saving about750,000 liters of water per dayand almost US$1 million annually.WATCH VIDEOr Agriculture accounts for thelargest percentage of water use inour value chain (see Trucost studyresults on page 41). In Mexico,our Green Giant business helpsgrowers use water more efficiently.At our Häagen-Dazs facility in Arras, France, more than 100 people – including students and employees– gathered to raise awareness and exchange information about water consumption in the communityduring our Water Day event. The environmental team presented best practices of its water use andprovided a tour of its wastewater treatment facility.Raising awareness about water consumptionOur reverse osmosiswater recovery systempurifies water byremoving salts.General Mills Global Responsibility 34Health Environment Sourcing Workplace Community
  • 37. Reducing solid waste generationWe continue to reduce our solidwaste stream by improvingefficiencies in our production operations.This includes identifying sources ofwaste and decreasing waste from ourprocesses. We also reduce the amountof waste sent to landfills by finding waysto recycle it or use it for other purposes.During 2012, we diverted approximately84 percent of waste from landfills. Wegenerated 159,000 metric tons of solidwaste in our wholly owned productionfacilities in 2012, 10.7 percent lessthan in 2011. Our waste generationrate was 0.034 metric tons per metricton of product, which is a decreaseof 7.6 percent, on target to achieveour goal of a 50 percent reductionby 2015, compared to 2005. Thesedecreases were primarily due to afocus on Continuous Improvementand loss identification, specificallyingredient overuse elimination efforts.Waste reduction at ourplants around the worldn At many of our facilities, we reuseboxes and totes instead of recyclingthe cardboard or sending it to alandfill. At our plant in Belvidere,Illinois, for example, we reusecorrugated cardboard from supplyshipments – decreasing wasteby 200 metric tons annually.n In the U.K., our Berwick facility stoppedsending its waste to landfills in 2012.Instead, the plant now manages itswaste through reuse and recycling,and diverted 328 metric tons of wastefrom local landfills in fiscal 2012. Inaddition to becoming a “zero waste tolandfill” plant, the change also savesmore than US$16,600 per year.n Our Seretram plant in Labatut, France,shares the zero-waste-to-landfilldistinction. Green Giant sweetcorn cans that do not meet qualityspecifications are crushed in amachine, which separates steel readyfor recycling from corn. In 2012, weidentified a partner that compoststhe corn for use as garden fertilizer.Keeping waste out of landfills through reduction, reuse and recycling1DWATCH VIDEOr AtourSanAdriánplantinnorthernSpain,ouremployeesareworkingtowardazero-wastegoal.Solid waste generation, 2005 - 2012Metrictons300,000250,000200,000150,000100,00050,00000. 2007 2008 2009 2010 2011 2012 2015GOALMetrictons/metrictonofproductSolid Waste by Disposition, 2012(% of total)84%We diverted approximately84 percent of wastefrom landfills in 2012.EN22n Recycling 78%n Landfill 16%n Reuse 4%n Incineration (Incl Energy Recovery) 0.6%n Composting 0.3%General Mills Global Responsibility 35Health Environment Sourcing Workplace Community
  • 38. Targeting food wasteOne-third of all the calories of foodproduced in the world every year arewasted – equaling 1.3 billion metric tonsof food waste – while nearly 1 billionpeople do not have enough to eat. Foodwaste also is five times more impactful ina landfill than packaging waste, becauseit creates methane – a GHG 20 timesmore potent than carbon dioxide.In our supply chain, we have establishednew systems to more effectivelyidentify opportunities to capturefood for donation, such as surplusingredients or over-runs of productswith seasonal or promotional packaging.From promotional cereal boxes andsnack bars to ingredients such as flourand chocolate chips, we continuouslyseek opportunities to donate food andboost food security in developed anddeveloping countries (read more aboutour work with food cooperatives andfood shelves around the world in theCommunity section of this report).We also help address the food wastechallenge through industry collaboration.In the United States, the Food WasteReduction Alliance plays a criticalrole in food waste reduction. Thegoals of the Alliance – made up of theGrocery Manufacturers Association,the Food Marketing Institute, theNational Restaurant Association andmany member companies – are toreduce the amount of food going tolandfills and increase the amountof food going to hungry people.EN22 Reducing transportation fuel usageWe are making progress towardour U.S. goal of a 35 percentreduction in fuel usage by 2015, using2009 as the baseline year. During 2012,fuel usage per metric ton of product(for outbound product transport in theU.S.) decreased by 2 percent to reach17 percent fuel reduction versus the 2009baseline. The reduction is largely due toincreased efficiency in transportationplanning and increased regionaldistribution, shipment loading practices,and delivery methods. Our approachincludes improved logistics planning,modal shifts to less-impactful forms oftransport (such as truck to rail), loadingusing slip sheets, and pallet reduction.EN29Global fuel reductionAround the world, our transportationteams are making targeted changes toreduce fuel usage. In the Middle EastNorth Africa region, for example, wedecreased transport-related fuel usageand associated GHG emissions by47 percent. By substituting woodenpallets with slip sheets and shifting allload movements from trucks to oceantransport, the team can load almosttwice as many cases per container –Improving transportation efficiency1EIn 2012, we donated more than 10,800metric tons of surplus food to U.S.charitable organizations – feedinghundreds of thousands of people ratherthan recycling the food (such as usingit for animal feed) or sending foodwaste to landfills. Examples include:n 158 truckloads of Big G cereal productsn 333 truckloads of Yoplait products – morethan 4,800 metric tons of foodn More than 61 metric tons of snack productsdonated to Feeding America Food Banksn More than 250,000 cases of Mill Citybaking products donated to foodbanks in Georgia, Ohio, Massachusetts,Michigan, New York and TennesseeDonating surplus:reducing waste andfeeding people“Dramatically reducing theamount of wasted food is acritical strategy in the drivefor global food security.Reducing food waste alsolowers the amount ofmethane gas – a significantsource of GHGs – comingfrom landfills.”– Jerry Lynch, General Mills ChiefSustainability Officer and Food WasteReduction Alliance Co-chairU.S. transportation fuel use reduction, 2009 – 2012Percentreductionrate(Fuelusepermetrictonproduct,2009=100%)100%95%90%85%80%75%70%65%60%0%2009 2010 2011 2012 2015GOALGeneral Mills Global Responsibility 36Health Environment Sourcing Workplace Community
  • 39. shipping the same volume using 250containers instead of 474. In France, wealso used intermodal transport – shiftingsome truck shipments to more fuel-efficient rail – to decrease emissionsby 134 metric tons of CO2e in 2012.In addition to these efforts, we workwith other partners across our supplychain to reduce fuel usage. For example,in the U.K. and Ireland, we transportnearly 90 percent of EU-producedproducts bound for the U.K. primarilyby boat. We collaborate with ourlogistics provider to ensure efficientdelivery of our products to customers.Today, our products are combined withother frozen foods transported by ourlogistics provider and then delivered toour largest retail customer’s distributioncenters. Using this strategy, we cutmore than 4 million road kilometers in2012. This collaboration optimizes oursupply chain, reducing product transport-related environmental impacts andboosting efficiency. We are leveragingthis approach in other locations.r In France, we decrease emissions usinga combination of truck and rail transport.r Full containers leave our distributionpartner’s frozen depot, maximizing spaceutilization and reducing truck miles driven. Reducing packaging footprintOur internal Packaging Metricindicators measure our progressin reducing the environmental impactof our packaging. Our Packaging Metricincludes four key indicators to assessimprovement: packaging weight;recycled content and recyclability;renewable and compostablecontent; and truckload efficiency.In 2012, we reached a milestone with52 percent of our packaging volumeimproved from our fiscal 2009 baseline– exceeding our 2015 goal of 40 percentimprovement three years early. Thevast majority of those improvementswere achieved through packagingweight reduction. Our revised goalstates that by 2015, 60 percent of ourglobal product volume will be sold inpackaging that has been improved sincefiscal 2009. While our 2012 results donot include recent acquisitions (Yokiand Yoplait International, which werenot yet fully integrated within the fiscalyear), those businesses are includedin the scope of the revised 2015 goal.Packaging weightWe innovate to reduce the package-to-product ratio across our product portfolio.In 2012, we introduced a lighter weightYoplait cup, which decreased the cup’sweight by 18 percent. The innovationsaves 8 million pounds, or more than3,600 metric tons, of plastic annually.This new cup is about half the weightof the cup in use when General Millsacquired the license to sell Yoplait yogurtin the U.S. market in the mid-1970s. Weachieved this reduction through a seriesof packaging enhancements over theyears. This latest packaging improvementrepresents a breakthrough after manyyears of development, demonstratingGeneral Mills’ commitment to makingthe capital investments necessary toimprove product packaging for the benefitof consumers and the environment.Exceeding our goal and setting a more aggressive packaging improvement target EN261FWe use four key indicators toassess packaging improvement:Packaging weight – reducingthe package-to-product ratioRecycled content – increasingrecycled content and recyclabilityRenewable content – increasingrenewable and compostable contentTruckload efficiency – fittingmore product onto trucks for transportWe work to reduce our impactacross all indicators, ensuringthat reductions in one area donot cause increases in another.Packaging Metricv The new lightweightYoplait cup reducespackaging weight by18 percent, saving8 million pounds(more than 3,600metric tons) ofplastic each year.General Mills Global Responsibility 37Health Environment Sourcing Workplace Community
  • 40. Recycled contentand recyclabilityGeneral Mills is among the largestusers of post-consumer recycled paperpackaging in the United States. Recycledcontent accounts for approximatelyhalf the weight of the packaging weuse for our U.S. products. We continueto pursue opportunities for increasingour use of recycled materials whilemaintaining product quality and safety.Recycled content: In addition toencouraging consumers to recycle, wealso increase the amount of recycledcontent in our packaging. GeneralMills has used recycled materials forpaperboard cartons since the 1930s.In 2012, we began converting from avirgin fiber carton in our Yoplait fridgepack to one made of 100 percentrecycled fiber. At the same time,we reduced the carton weight bynearly 17 percent by decreasing thethickness of our paperboard. The newfridge pack will save more than 180metric tons of material per year. Thepackaging improvements have savedhundreds of thousands of dollars dueto the recycled paperboard contentand overall reduction in tonnage.EN2Recyclability: We now featureHow2Recycle labels on all eight-countYoplait fridge packs sold at U.S. retailersnationwide to increase consumerawareness of recyclability, especiallyof the polypropylene cup. Educatingconsumers represents a substantialopportunity, because while 48 percentof Americans have access to recycling forthis cup, only 8 percent of thistype of packaging was actually recoveredin the recycling stream in 2010, accordingto the most recently reported data by theU.S. Environmental Protection Agency.By the end of 2012, approximately20 million fridge pack cases with theHow2Recycle label had been sold. Ourhope is that this change will increaserecycling of this packaging across thecountry. We are evaluating addingthe How2Recycle symbol to otherpackaging across our product portfolio.Renewable contentWe are making progress inidentifying viable replacementsfor nonrenewable materials.Truck loading efficiencyTo improve product transport efficiency,we introduce packaging innovationsthat enable us to fit more products intoeach container and shipment. Forexample, we changed the packagingof the 120-count size of our Totino’s PizzaRolls snacks from a carton containinga pouch to a printed film. This changereduced packaging weight by 66 percent,while allowing us to fit 58 percentmore packaging on each pallet.s Our Pillsbury dough cans contain more than60 percent post-consumer recycled fiber. Oursupplier also is investigating how to recoverdough cans.v Switching fromcartons to printed-filmpackaging reducespackaging weight by66 percent and allows58 percent morepackages per pallet.“The Sustainable Packaging Coalition is a cross-industry effort toimprove packaging throughout the value chain. The How2Recycleproject, which resulted in a common label for communicatingthe recyclability of packaging, demonstrates the high value ofcollaboration across multiple industries. This outcome could nothave been achieved by a single company or even a single industry.”– Paul Earl-Torniainen, Sustainability Manager, General Mills, andMember, Executive Committee, Sustainable Packaging Coalitionv How2Recycle labels educateconsumers about recyclability ofpackaging. All Yoplait fridge packssold at U.S. retailers now featurethese labels to encourage recycling.General Mills Global Responsibility 38Health Environment Sourcing Workplace Community
  • 41. At General Mills, our holistic approach tosustainable agriculture includes reducingenvironmental impacts and improvingthe overall value chain. Through ourrelationships with growers, suppliers, industryassociations and other partners, we focuson sustainably sourcing the raw materialswe use in our products. Integrated pestmanagement (IPM) is one component of ourbroader focus on sustainable agriculture.As part of our long-term sustainableagriculture strategy, we share our knowledgeabout IPM with peer companies and workwith our suppliers to minimize the use ofpesticides on the crops and ingredients wesource. Our suppliers utilize their own IPMprograms. Through our work with Field toMarket, we also are helping growers captureinformation about pesticide use, includingenergy use (farmer application of pesticides)and GHGs (embedded in the manufacturingof pesticides). For more details, see the Fieldto Market story in the Sourcing section.Another example is the support we provide tofarmers in central Mexico through interest-free loans that allow them to adopt dripirrigation, which reduces the use of pesticides,improves yields and uses about 50 percentless water than conventional furrow irrigation.General Mills has a long history of workingclosely with farmers around the world topromote responsible pesticide use. Our GreenGiant brand, for example, was among the firstto use best-in-class pesticide managementin the 1940s. Beginning in 1980, GreenGiant agronomists implemented a seriesof measures and practices for reducingpesticide use across all crops. Between1980 and 2007, Green Giant sweet cornproducts cut the pounds of insecticidesused by 80 percent, reduced the number ofapplications by 40 percent, and trimmedthe costs to control insects by 37 percent. In2007, we set new goals, including reducinginsecticide and herbicide applications onsweet corn – insecticides by 30 percent andherbicides by 5 percent – in three years. Theinsecticide goal was attained one year early– with the fall harvest in 2009; herbicidereductions were achieved in 2010. Growersreduced insecticide use by utilizing bettermonitoring and improved harvest/cleaningequipment. These practices are still inuse today. We continue to collaborate,educate where needed and encourageIPM wherever our business takes us.EN26Sustainable agriculture and integrated pest management Improving sustainability of raw materials and watershedsOur efforts to reduce our environmentalfootprint extend beyond our ownoperations and include raw materialsourcing. Because agriculture isresource intensive, we focus onimproving our sustainable sourcingpractices. Our strategy is to increasethe sustainability of the ingredients weuse in our products. We partner withindustry groups to advance sustainablesourcing frameworks across our foodsupply chain. We also pilot scalablesolutions, focusing on our 10 priority rawmaterials. Learn more about how we arehelping transform the food supply chainin the Sourcing section of this report.EN26Promoting sustainable practices, purchasing sustainable ingredients and protecting natural resources2AWATCH VIDEOr LearnmoreaboutGreenGiantintegratedpestmanagement.Increase sustainability of ingredients2General Mills Global Responsibility 39Health Environment Sourcing Workplace Community
  • 42. Our ultimate goal is to sustainablysource the raw materials we use inour products. Our current focus is onincreasing the sustainability of the10 priority agricultural raw materialswe source, which represent more than50 percent of our annual purchases. Wepartner with industry groups to advancesustainable sourcing frameworks acrossour supply chain. Then we pilot scalablesolutions and share our findings soothers can refine their efforts as well.Our strategiesIncreasesustainabilityof ingredientsImproveglobal waterstewardshipImprovesuppliersustainabilitySOURCINGOur sustainability mission isto conserve and protect thenatural resources upon whichour business depends.
  • 43. General Mills Global Responsibility 41OverviewEvaluating General Mills’ greenhouse gas (GHG) and water footprint – In fiscal 2012, General Mills commissioned a Trucost study of our environmentaldependence on natural capital (use of natural resources) across the value chain – including agriculture, ingredient production, packaging supply chain,product production, distribution and consumer use. The resulting natural capital assessment, issued in September 2012, shows that nearly two-thirdsof GHG emissions and 99 percent of water use occurs outside our own operations in the growing of raw materials and preparation of ingredients weuse to produce our products (detailed below) – reinforcing the importance of sustainable sourcing.Performance dashboardPhase 1AssessmentPhase 2StrategyformationPhase 3TransformationPhase 4Monitoring& evaluationCocoa Vanillacorn Wheat Palm oilAnimal WelfareDairy OatsSugar beetsFiber packagingSugarcaneConsumer/customer storage 2%Consumer/customer preparation 12%General Mills transportation 3%General Mills distribution centers 1%Distribution (retailing) 12%Product production 8%Ingredient production 7%Agriculture 41%Packaging supply chain 14%Health Environment Sourcing Workplace CommunityWater consumptionGreenhouse gas emissionsAgriculture 82%Product production 1%Packaging supply chain 14%Ingredient production 3%
  • 44. Health Environment Sourcing Workplace Community1. Assessment: In 2011, we worked with the World Wildlife Fund (WWF) and theRainforest Alliance to complete a comprehensive, in-depth assessment of all the rawmaterials we buy worldwide. Each raw material was measured against dozens of potentialrisk categories, including animal welfare, child labor, deforestation, economic sustainability,fertilizer (nitrogen) use, GHG emissions, soil loss, water quality and water use.2. Strategy formation: We identified the 10 priority raw materials where we can havethe greatest impact from a sourcing standpoint: wheat, oats, palm oil, vanilla, cocoa, corn,dairy, eggs, fiber packaging and sugar (sugar beets and sugarcane). Our focus is ondeveloping strategies for sustainably sourcing these materials.3. Transformation: Improving sustainability is a continuing process – one that we do notundertake alone. We believe we can have the greatest impact by working with industry partners andnongovernmental agencies across the supply chain to identify new solutions. We pilot projects andOur approach: plan & executeWe focus on improving the environmental, economicand social impacts of sustainable sourcingThrough our work with industry groups, such as Field to Market: The Alliance for SustainableAgriculture and the Roundtable on Sustainable Palm Oil (RSPO), we are helping to move the rawmaterial supply chain toward more sustainable solutions. Our efforts include measuring and managingthe use of water and energy throughout our supply chain. Through our holistic value creation strategy,we also are helping to improve the livelihoods of smallholder farmers and their communities.General Mills follows a four-step sustainable sourcing model – assessment, strategyformation, transformation and monitoring/evaluation – to improve the sustainabilityof the raw materials we use to make our products. We also apply this four-stepprocess to manage the impact of water usage across our supply chain.Improve global water stewardshipA Charting a path to watershed healthImprove supplier sustainabilityA Tracking our upstream environmental impactB Respecting human rights in our supply chainOur strategies and actionsp.43p.50p.52123“By assessing the impacts of each of their raw materials, General Mills has an opportunity to advance a sustainable agricultureindustry. This transformation is only possible by mapping and engaging their supply chain in water stewardship and improvedfarming practices to meet the challenges of feeding a growing population on a finite planet.”– Jeff Malcolm, Manager, Business & Industry, World Wildlife FundIncrease sustainabilityof ingredientsA Purchasing sustainable raw materialsand promoting sustainable processesB Improving the livelihoods of smallholder farmers
  • 45. Health Environment Sourcing Workplace Communitycommunicate the results so we – and others in the industry – can continue to refine ourapproach. General Mills has taken the lead in pursuing sustainable solutions for wheat andoats. In other geographies, we are pursuing a holistic value creation strategy to improvethe livelihoods of smallholder farmers who grow artichokes, cocoa, corn and vanilla.4. Monitoring and evaluation: Our efforts to monitor andevaluate our progress are ongoing. When necessary, we involve third-party auditors to help measure and analyze our results.Leadership and governance: Within General Mills, responsibility forsustainable sourcing lies with the Vice President and Chief Sustainability Officer(CSO) and the Director of Sourcing Sustainability, who reports to the CSO and theVice President and Chief Purchasing Officer. The CSO reports into the Senior VicePresident of Supply Chain and the Senior Vice President of External Relations. OurSustainability Governance Committee is comprised of the Executive Vice Presidentof Supply Chain, Executive Vice President of U.S. Retail Operations and ExecutiveVice President of International Operations. Board oversight occurs through theannual sustainability update to the Public Responsibility Committee. The GeneralMills Director of Sourcing Sustainability plays a leadership role in key industryinitiatives, including serving on the board of Field to Market and participating inthe Sustainability Council of the Innovation Center for U.S. Dairy and the RSPO.Increase sustainability of ingredients1 Purchasing sustainable raw materials and promotingsustainable processesAs noted in the timeline on page 41,our efforts to improve sustainabilityof our 10 priority raw materials (thosewhere we can have the greatest impactfrom a sourcing standpoint) areproceeding through the strategy andtransformation phases. We continueto make progress on all fronts. Weare furthest along in our work tosustainably source palm oil and wheat.Palm oilTo reinforce the development of certifiedsustainable palm oil production practices,General Mills committed in 2010 tosourcing 100 percent of its palm oil fromsustainable sources by 2015. We areon track to meet this commitment. Weare advancing our pledge by identifyingand securing sources of sustainablyproduced palm oil in a phased approach.We are in the process of converting ourportfolio leveraging mass balance andanticipate that by the end of fiscal 2013,50 percent of our global portfolio willbe using sustainably sourced palm oil.Although General Mills is a relativelyminor user of palm oil, we acknowledgethat responsible users of even smallamounts of raw materials can impactissues via principled purchasing practices.General Mills supports RSPO principlesand efforts to encourage and certifysustainable palm oil production practices.To reinforce those principles, GeneralMills purchases palm oil only fromRSPO members – with preference forpurchasing RSPO-certified sustainablepalm oil. General Mills is committedto sourcing palm oil in a socially andenvironmentally responsible manner.EN26Applying our sustainable sourcing model to our 10 priority raw materials1Ar General Mills is committed to sustainablysourced palm, the raw fruit used to createpalm oil.General Mills Global Responsibility 43
  • 46. Health Environment Sourcing Workplace CommunityWheatAs a large buyer of U.S. wheat, GeneralMills is at the forefront of sustainablesourcing efforts for this raw material.We are partnering with Field to Market:The Alliance for Sustainable Agricultureto conduct a three-year pilot projectstudying the environmental impact ofwheat production in eastern Idaho. Thegoal of this work is to reduce the impactof wheat cultivation on the environmentwhile maintaining or improving productivity.This Idaho pilot includes 15 to 20 growerswith more than 50,000 acres of landraising 6 million bushels of wheat annuallyover the 2010, 2011 and 2012 growingseasons. Using a software tool called theFieldprint Calculator, participating growersobtain detailed reports about how theyare performing against key indicators. Thedata helps them measure inputs and yieldsto better understand the environmentalimpact of crop production on GHGemissions, irrigation water use, energy use,soil loss and land use. In February 2013,these growers gathered at a workshopto share results and insights about howtheir operations compare to others in theregion, across the state and nationally.Next steps in 2013 include expandingthe Field to Market approach beyondwheat to potatoes and sugar beets – theother rotation crops in the Snake River,Idaho, pilot growing area. Additionally,we are exploring third-party verificationof sustainable wheat using the outcome-based measures established by the Fieldto Market roundtable. Through our rolein the pilot and roundtable, GeneralMills is helping lead the effort for moresustainably sourced wheat. We hope tobegin meeting our customers’ requestsfor sustainable wheat starting in 2014.EN26General Mills participates in Field to Market: TheAlliance for Sustainable Agriculture, which bringstogether a diverse group of grower organizations,agribusinesses, food companies, conservation groups,universities and agency partners to focus on promoting,defining and measuring the sustainability of agriculture.Field to Market’s sustainability efforts focus on reducingthe environmental impacts – including GHG emissions,irrigation water use, energy use, soil lossand land use – of North American rowcrops. Field to Market is now expandingits water metric beyond the quantity ofwater used to also focus on water quality.Field to Market: industry collaboration increases sustainability of U.S. row cropsv Using the FieldprintCalculator, which isintegrated into thegrowers’ farm recordsoftware, growers analyzehow their practicesinfluence natural resourcemanagement outcomeson their farms, includingefficient land use, soilconservation, water use,energy use and GHGemissions.“Field to Market is theleading roundtable definingsustainability for U.S. rowcrops. This group plays astrategically important role inadvancing our work on wheat,oats, sugar beets, corn andsoy – almost half of our priorityingredients.” – Steve Peterson, GeneralMills Director of Sourcing Sustainabilityand Vice Chair of Field to Marketr General Mills is identifying supply chain strategies to define, measure and promote continuousimprovement for agriculture. One of these strategies is to develop and pilot outcomes-based,science-based metrics and tools. Using this approach, we are partnering with Syngenta and wheatgrowers as part of a Field to Market pilot in Idaho.Land useSoilconservationClimateimpactEnergy use Water user A Taste of General Mills blog, August 2012,“Growing sustainable wheat in Idaho”General Mills Global Responsibility 44
  • 47. Health Environment Sourcing Workplace CommunityPork production Egg production Milk productionAnimal welfareAt General Mills, we support the humane treatment of animals in agriculture. Our animal welfare policy focuses on how animals are raised and treated.FP11, FP12General Mills supports the development of pregnant sow housingalternatives. Though we recognize that the development andimplementation of alternative systems may be a long-term processthat could take up to 10 years, we will favor pork suppliers whoprovide actionable plans by 2017 to create traceability and to endtheir use of gestation crates within the U.S. pork supply chain.FP11General Mills is working with suppliers in Europe to increasethe volume of eggs available from free-range hens. As a result,in 2013 we expect to source 100 percent free-range eggs for allHäagen-Dazs products produced in Europe, while continuing tosupport and source ingredients from local farmers and suppliers.To encourage the development of alternative production methodsin the United States, General Mills purchased 1 million eggsfrom cage-free hens for our U.S. retail operations in 2012.FP11Along with other members of the Sustainable Agriculture Initiative(SAI), General Mills Europe is working with farmers’ associations toensure that all animals are: free from hunger, thirst and malnutrition;free from discomfort; free from pain, injury and disease; freefrom fear and distress; and free to engage in normal patterns ofanimal behavior. In the United States, General Mills’ Yoplait wasthe first leading yogurt company to source only milk producedby cows not treated with the synthetic growth hormone rBST.General Mills’ Häagen-Dazs products in Europe are also producedusing only cream and milk from cows not treated with rBST.FP12VanillaMadagascar is the world’s leadingproducer of vanilla, responsible for morethan 80 percent of production. GeneralMills relies on this region as a source ofthe high-quality vanilla used in Häagen-Dazs ice cream. For a majority of theestimated 80,000 Malagasy farmers, thevanilla crop is their only source of income.In February 2013, we announced a newsourcing program designed to fostergreater economic vitality for smallholdervanilla farmers in Madagascar andensure the availability of high-qualityvanilla for future generations.Barriers to a sufficient supply ofsustainably sourced vanilla includelimited yields due to recurring cropdisease, weather disruptions and otherchallenges faced by growers, suchas price volatility and limited marketaccess. General Mills is pursuing atwo-pronged approach to address“CARE is excited about the opportunity to expand its long-standing partnership with General Mills in Madagascar.This will allow us to work together to integrate smallholderfarmers in the supply chain, raising incomes for poorfamilies and providing an environmentally sound, sociallyresponsible source of vanilla for Häagen-Dazs andGeneral Mills. This is a great example of a partnershipbased on shared values and a true ‘win-win’ effort.”– Helene D. Gayle, MD, MPH, President and CEO, CARE USAGeneral Mills Global Responsibility 45
  • 48. Health Environment Sourcing Workplace Communitythese issues: working with smallholdervanilla growers in Madagascar andsupporting vanilla genome research toimprove the crop’s disease resistance.Smallholder program: This new sourcingprogram brings together the strength ofthree partners to promote responsiblevanilla farming: General Mills and itsextensive supply chain and agronomicknowledge; vanilla supplier VirginiaDare with its deep understanding of thevanilla market; and the internationalhumanitarian organization CARE withits expertise in economic developmentfor poor communities globally.The Madagascar vanilla programwill provide access to training andeducation that will allow several hundredsmallholder vanilla farmers to producea more sustainable and higher qualityvanilla crop. The training will focuson teaching value-added productiontechniques, including yield improvementand vanilla curing. By adding valueat the farm level, vanilla growers willbe able to significantly increase theirincomes. The program also will includebuilding a vanilla curing and storagefacility that can be used to store riceafter harvest, helping improve foodsecurity for the community. Based onour experiences with the initial pilotvillage in Madagascar’s Sava region, wewill modify the program as needed andexpand it to other villages. This evolutionis consistent with our approach acrossall raw materials in our supply chain:pilot, learn, then implement a scalablemodel for sustainable sourcing.HR6, FP4Genome research: General Mills is alsoworking to deepen global understandingof the vanilla plant, which will ultimatelybenefit growers in Madagascar. Thecompany is funding cutting-edgeresearch to map the vanilla genomeby the University of California, Davis.This research is well underway and willhelp lay the foundation for natural andconventional breeding improvements toincrease disease resistance or even toenhance flavor. Using traditional plantbreeding methods, researchers areworking to develop disease-resistant,higher-yielding varieties. Researchersplan to begin small-scale testing of newvanilla varieties in 2013 and hope tomake the plants available to growers assoon as 2015. Future research effortswill target yield improvements.CocoaAlthough General Mills does not buycocoa directly from farmers – wesource products such as chocolate fromingredient suppliers – cocoa is one of thepriority commodities we are addressingin our sustainable sourcing model. Cocoafarming is an intensive process, andthere are labor issues within the cocoasupply chain. General Mills’ SupplierCode of Conduct prohibits the use offorced labor and child labor in the makingof our ingredients and products (readmore about human rights in our supplychain on p. x). It is our view that a greatershare of the benefit of more sociallyand economically sustainable cocoaproduction practices should accrue to thepeople who produce the crop. Sustainablemethods and improved productionpractices are key tools for helping raiseliving standards for cocoa growers.We are exploring opportunities tohelp generate better sources of cocoa,improve sustainability, and foster greaterr General Mills is a member of the World Cocoa Foundation (WCF), which encourages socially,economically and environmentally responsible and sustainable cocoa farming. WCF has reached morethan 540,000 cocoa farmers in Africa, Asia and the Americas.r In Madagascar, vanilla beans are laid out to dry in the hot sun as part of the curing process, which addsvalue to farmers’ vanilla production and significantly increases their incomes.General Mills Global Responsibility 46
  • 49. Health Environment Sourcing Workplace Communityeconomic vitality for cocoa growingcommunities and individual farmers.General Mills is a member of the WorldCocoa Foundation (WCF). WCF buildspartnerships with cocoa farmers, origingovernments and environmentalorganizations; supports and appliesresearch that improves crop yield andquality; and supports training andeducation for cocoa farming families.HR6, HR7, FP4OatsOats are one of the largest grain cropspurchased by General Mills. In Canada,General Mills is helping to launch theWestern Canada Sustainability Pilot inManitoba and Saskatchewan. Canada isone of the world’s largest producers ofoats – and a significant source of oats forour products. We are working to recruitgrowers for a sustainability pilot beginningin 2013 (similar to the Field to Marketefforts in the United States) for oats andwheat, two of the main crops used in ourcereals. This pilot also will include canolaand pulse crops (peas and lentils) aspart of the local growers’ crop rotation.Our partners in this sustainability projectinclude Pulse Canada, Canola Growers,the Prairie Oat Growers Association(POGA), Crop Life and Ducks Unlimited.This sustainable oats pilot project buildson General Mills’ previous research focuson oats. In 2009, General Mills fundedan initiative at the U.S. Department ofAgriculture to promote public researchon oats to produce a genetic roadmap forthe crop. General Mills has now partneredwith the North Carolina Research Campus(NCRC) – pairing more than 80 years ofagricultural research expertise with thecutting-edge technology and genomic andbioinformatics expertise at NCRC. Oneobjective of this research is to boost theyield improvement and disease resistanceof future oat crops, thus further improvingthe sustainability of this important crop.EN26Sugar beetsIn concert with Field to Market, weare working across the industry toimprove sustainable sourcing of sugarbeets. Our efforts include pursuing thelaunch of a sugar beet pilot in the RedRiver valley of Minnesota and NorthDakota, which is a major sugar beetgrowing area in the United States. Thiswork is a natural extension of our Fieldto Market pilot efforts with wheat andoats. Through our work with sugarbeets, we are now bringing anotherimportant North American row cropinto the Field to Market program.EN26Fiber packagingThrough our membership in the ConsumerGoods Forum (CGF), we are workingto determine the best approach forsustainable sourcing of fiber-basedpackaging, including managing the roleof fiber packaging in helping to reduceglobal deforestation. We also haveparticipated in the Global PackagingProject, a CGF initiative to harmonizethe definition of sustainable packaging.EN26SugarcaneGeneral Mills buys sugar sourced fromsugar beets and sugarcane. Given thedifferent growing environments of thesetwo crops, our sustainability approach tosourcing these two types of sugar alsovaries. We are currently evaluating ourglobal strategy for sustainable sugarcanesourcing. We anticipate following asimilar process to the approach weare taking with our other priority rawmaterials: joining an industry group,engaging suppliers and partners, andpiloting programs to execute sustainablesourcing of sugarcane. General Millshas begun work with the World WildlifeFund on sustainable sugarcane in orderto advance industrywide initiativesfor improving production methodsand conserving natural resources.EN26r With Field to Market, we are targeting sugarbeets grown in Minnesota and North Dakota asthe next sustainability pilot.r We are helping launch a sustainability pilot program for oats in western Canada, a major oatgrowing region.r We are evaluating our global strategy forsustainable sugarcane sourcing.General Mills Global Responsibility 47
  • 50. Health Environment Sourcing Workplace CommunityDairySince 2010, we have been an activemember of the Innovation Centerfor U.S. Dairy Sustainability Council,which is working to improve thesustainability of the U.S. dairy supply.We participated in the Innovation Centerfor U.S. Dairy’s efforts to establisha dairy sustainability framework formeasuring the impact of dairy productionfrom farmers to consumers. Thisstandardized framework was developedin partnership with dairy producers,processors, environmental groups,scientists, economists and governmentagencies – involving stakeholders fromacross the value chain. Using thisframework as a baseline, we are workingtoward demonstrating continuousimprovement in dairy sustainability.General Mills Europe is an activemember of the Sustainable AgricultureInitiative (SAI) Platform, whichfacilitates sharing of knowledge andinitiatives to support the developmentand implementation of sustainableagriculture practices worldwide involvingstakeholders from across the food chain.CornThe majority of the corn and soybeanswe purchase are grown in the UnitedStates. General Mills’ use of corn isrelatively small compared with our useof other raw materials, such as wheatand oats. In the United States, wesupport the Field to Market pilot led byindustry partners to advance sustainablesourcing of corn and soybeans.EN26r We support efforts to establish a dairy sustainability framework for measuring the impact of dairyproduction from cows to consumers.General Mills is a member of the Sustainability Council of the Innovation Center for U.S. Dairy, whichhas committed to the voluntary goal of reducing GHG emissions for fluid milk production by 25 percentby the year 2020 (using 2007-2008 as a baseline). Read more about our GHG reduction efforts in theEnvironment section of this report.EN26Reducing our dairy carbon footprintv The addition of a raw milk receiving and processing facility at our yogurt plant in Reed City, Michigan,has significantly reduced our inbound freight. By switching from processed condensed skim milk todirect delivery and onsite processing of raw milk, we have eliminated more than 1 million transportationmiles each year. The plant also reduced its use of city water by 10 million gallons annually.r Sustainable sourcing of corn grown in theUnited States is advancing through a Field toMarket pilot program.WATCH VIDEOr In Arras, France, we are sustainablyproducing Häagen-Dazs products.General Mills Global Responsibility 48
  • 51. Health Environment Sourcing Workplace Community Improving the livelihoods of smallholder farmersPursuing sustainable development through origin-direct investment1BThrough our holistic value creationstrategy, we are building a model forsustainable development focused onorigin-direct investment to boost incomesof smallholder farmers, raise livingstandards in their communities and ensuresustainable sourcing of raw materials.We have a long-standing program withChinese corn farmers and are launchingnew programs in Madagascar and Peru(see page 50). These programs build uponGeneral Mills’ century-long history ofworking closely with farmers around theworld to promote sustainable agriculture.Partnering with cornfarmers in ChinaSince 2003, General Mills has pursueda holistic value creation strategy innortheastern China. Our three-prongedapproach includes: providing smallholderfarmers with training, seeds and otherinputs; guaranteeing a price that’s higherthan the market price; and committingto buy the farmers’ entire corn crop.This holistic approach continues todeliver huge impact for the farmers andtheir community by raising householdincomes across the village and spreadingthe ripple effect of these economicgains through the surrounding area. Inreturn, General Mills has a reliable,sufficient supply of high-quality, locallysourced corn – a more efficient andsustainable solution than importing cornto make our Bugles snacks in China.By contracting directly with GeneralMills, the corn growers increase theiragronomic knowledge and improve theirenvironmental stewardship, as well astheir yields. General Mills also stays closeto growing conditions and helps reducerisks, such as plant diseases. Higher pricesand a guaranteed market for the farmers’corn crops have raised living standards foreveryone in the village. Household incomeshave grown as much as eightfold; two-storyhouses constructed of brick and cementblock are replacing mud and grass homes;and many families have purchased cars,appliances and farming equipment. Thetown also benefits from paved roads and anairport that serve the nearby corn processor.EC9, SO1, FP4WATCH VIDEOr General Mills partners with cornfarmers in the Yongqing Village inChina’s Heilongjiang Province.Our holistic value creationstrategy in northeasternChina has improvedhousehold incomes forcorn farmers since 2003.General Mills Global Responsibility 49
  • 52. Health Environment Sourcing Workplace CommunityWorking with artichokegrowers in PeruWe also are pursuing a holistic valuestrategy in Peru, where we source high-quality artichokes for our Green Giantbusiness in Europe. In partnership withour Peruvian artichoke co-packer, NGOpartner CARE and smallholder artichokefarmers, General Mills is launching aproject to improve agronomy practices,yields and crop quality. This pilotproject, initiated in 2013, will providetechnical training to local farmers ongrowing techniques, post-harvestpractices and entrepreneurial skills. Inaddition, the project will support theestablishment and formalization offarmers’ associations and offer financialtraining to help farmers access creditfor the purchase of seeds. GeneralMills will benefit from a reliable andsufficient supply of high-qualityartichokes – a special variety grownonly in the Sierra region of Peru. Thelong-term goal is to develop a scalable,sustainable artichoke sourcing modelthat creates value for the farmers, forour business and for the environment.FP4r Harvesting artichokes in Peru. Our new pilot program will provide technical and entrepreneurialsupport to 89 smallholder artichoke farmers in Peru’s Sierra region.Improve global water stewardship2 Charting a path to watershed healthWater is a critical resource for GeneralMills. Within our own facilities, we reducethe amount of water we use throughefficiency improvements and water reuse(see Environment section of this report). Asnoted in the Trucost data on page 41, ourown operations account for a small fractionof our overall footprint – approximately99 percent of the water consumedto create and distribute our productsoccurs outside our direct operations.We are working to improve thesustainability of water use throughoutthe General Mills value chain. In2012, we launched a global waterstewardship strategy in partnershipwith The Nature Conservancy (TNC).EN9, EN26Applying our sustainable sourcing model to conserve water resources2AAssessment Strategy Transformation MonitoringPath to watershed healtha study of keyoperation andgrowing regionwatershedsA plan to improvewatershedsfound to beat riskConveningother waterusers andtaking actionEvaluatingresults andexpandingour workGeneral Mills Global Responsibility 50
  • 53. Health Environment Sourcing Workplace Community“General Mills is a global leader of corporatewatershed stewardship, demonstratedby their commitment to incorporatingassessment of risk and development ofreal on-the-ground action throughouttheir entire value chain. The companyhas realized its potential to serve as awater stewardship leader, engaging withother stakeholders to make a real impacton the sustainability of water use.”– Kari Vigerstol, Senior Hydrologist, GlobalFreshwater Team, The Nature ConservancyAs with the other raw materials in our supply chain, our approach to water stewardship follows a four-step process of assessment, strategy formation,transformation and monitoring/evaluation.phase 1 AssessmentIn March 2012, we began the process with TNC ofconducting a water risk assessment of all our plantsand growing regions, beginning with North Americaand continuing across our global footprint. Thisassessment is helping us to better understand thehealth of freshwater resources we depend upon forour global plant locations and in our most importantgrowing regions around the world. We expect tocomplete this global footprint assessment by the endof calendar 2013. This assessment builds on our workwith the World Wildlife Fund (WWF) to conduct asupply chain water risk analysis in 2010. That analysishelped identify potential physical, regulatory andreputational water risks associated with sourcingkey commodities, including dairy, sugar, wheat andoats, used in our products. WWF leveraged thiswork to create its online Water Risk Filter, whichwas developed with support from DEG, the GermanDevelopment Bank. Our collaboration with WWFdemonstrates General Mills’ leadership in partneringto innovate and solve problems in our supply chain.phase 2 Strategy formationIn collaboration with TNC, we are now proceeding witha “deep-dive” assessment of some of our key growingareas – including broad stakeholder engagement – that ishelping to shape our strategies. One of those areas is inMexico, where we have completed an assessment in thearea around our Irapuato site. Our work in the Irapuatoarea was instructive, causing us to shift our approachfrom a point-source water strategy (water sourcedfrom a specific well head or municipality) to a broaderwatershed strategy focused on the entire growing region.This example demonstrates General Mills’ iterativeprocess of assessment and experimentation throughpilot projects to inform our strategy. We are building onour previous facility-focused conservation efforts andelevating our strategy to focus on longer-term impactsto our business and the surrounding area. We planto replicate this approach across our global high-riskwatershed areas. Going forward, we will be formulatingstrategies based on the health assessment of eachwatershed with clear mitigation plans, then invitingothers to join us in protecting each watershed area.EN9phase 3 TransformationOur goal is to begin implementing changes – basedon our Phase 2 assessments – in high-risk watershedareas in 2014. We anticipate these actions to include:beginning to implement on-the-ground conservationinitiatives in the most at-risk watersheds; putting inplace stewardship best practices; setting company-wide sustainability targets; and developing a globalfreshwater stewardship program including publiccommitments, public education and advocacy withwatershed neighbors. We also will work with others topursue Alliance for Water Stewardship certification.phase 4 Monitoringand evaluationOur efforts to track progress and analyzeresults are ongoing.r We are working with The Nature Conservancy to conduct waterrisk assessments of our plants and growing regions.r Watershed strategies focus on mitigating longer-term impactsto an entire growing region.General Mills Global Responsibility 51
  • 54. Health Environment Sourcing Workplace CommunityImprove supplier sustainability3 Tracking our upstream environmental impactBecause our broader environmental impactoccurs outside our operations – primarilyin agriculture, ingredient production andpackaging (as noted in the Trucost studyresults on page 41) – we are working withour suppliers to measure and reduce ourupstream footprint. Using our SupplierSustainability Scorecard to track ourportion of a supplier’s energy, water, wasteand GHG emissions, we are gatheringdata associated with the raw materialsused to make our products. We’ve beentracking these metrics since 2005 in ourown operations. Now we are expandingthis process to include our suppliers,enabling better collaboration to reduceour extended environmental impact.As awareness grows of the importance ofthis type of measurement, new industry-wide platforms for data collection areemerging. We are evaluating those options.FP1Phase 1 resultsIn fiscal 2012, we deployed the supplierscorecard to our top 100 U.S. suppliers inour four main categories: commodities,ingredients, packaging and externalsupply chain. Eighty percent of thesesuppliers responded. We now havebaseline data for each of these suppliers.In the future, we plan to collaboratearound reductions in energy, water,solid waste and GHG emissions.Phase 2Already in fiscal 2013, we have launchedthe supplier scorecard with our top15 European suppliers to capture thesame baseline data as in the UnitedStates. We also expect to introduceoptimized data collection and reporting,establish supplier goals and implementchanges across our sourcing platform.Measuring our broader footprint with Supplier Sustainability Scorecards3AWe are working withour suppliers tomeasure and reduceour upstream footprint.80%80 percent of our top U.S.suppliers participate inour Supplier SustainabilityScorecard efforts. Ourtop 15 European supplierswill capture data usingthe scorecard in 2013.General Mills Global Responsibility 52
  • 55. Health Environment Sourcing Workplace Community Respecting human rights in our supply chainWe believe that the protection of humanrights through responsible sourcing is acritical part of our Nourishing Lives mission.As part of our commitment to supportinghuman rights in our supply chain, we areleaders in the AIM-PROGRESS ResponsibleSourcing task force, whose mission is topromote responsible sourcing by sharingbest practices and promoting efficiencyin the packaged goods supply chain.We also are signatories to the UnitedNations Global Compact (UNGC) andare guided by the International LabourOrganization’s (ILO) 1998 Declaration onFundamental Principles and Rights at Work.Our Supplier Code of Conduct details ourexpectations of our suppliers. Together, ourWorkplace Standards and Ethical SourcingPolicy and our Supplier Code of Conductset standards for our company, as wellas for our suppliers, vendors and otherbusiness partners, regarding the protectionof human rights. These standards arebased in part on the ILO 1998 Declarationon Fundamental Principles and Rightsat Work. In 2012, we completed our firstaudit cycle of finished goods producers,including our own facilities and co-packers.We will continue to audit our finishedgoods producers and co-packers on acontinuous cycle driven by performance.Guided by the 1998 Declaration, GeneralMills respects the principles of collectivebargaining and freedom of association,and prohibition of discrimination, childlabor and forced labor – including thatassociated with human trafficking. Athird-party auditing program helps ensureremediation should we find or becomeaware of violations. All instances ofnoncompliance related to our auditedsuppliers in fiscal 2012 are either resolvedor are actively being addressed in anagreed-upon corrective action plan.HR2, HR5, HR6, HR7, FP1Regarding Dodd-Frank Act (Section1502) additional reporting requirementsfor SEC registrants relating to thegeographic source of certain “conflictminerals:” General Mills is well-awareof this new regulatory requirement andis fully committed to the importantpublic policy behind it. We are currentlyin the process of assessing its impacton our business operations and ourprecise reporting obligations.Read more about our commitmentto responsible sourcing.Supporting ethical standards and guidelines3BThe protection of humanrights through responsiblesourcing is a critical part ofour Nourishing Lives mission.Responsiblesourcing guidance:n AIM-PROGRESSResponsible Sourcingtask forcen United NationsGlobal Compactn International LabourOrganization’s 1998Declaration onFundamental Principlesand Rights at Workn Supplier Code of ConductIn 2012, we completedour first audit cycle offinished goods producers.General Mills Global Responsibility 53
  • 56. Our goal is to foster a safe,ethical, diverse and inclusiveworkplace where employees canthrive. We accomplish our missionby living our values: do the rightthing, all the time; innovate inevery aspect of our business; buildgreat brands; respect, develop andinvest in our people; and strive forconsistently superior performance.WORKPLACEEvery day around the world, our34,500 employees work to carryout our mission of Nourishing Lives.Our strategiesBuilda strongworkplacecultureMaintaina safeworkplaceRespect,develop andinvest inemployees
  • 57. General Mills Global Responsibility 55Performance dashboardStrengthening ourworkplace cultureIncreasing diversityand inclusionIncreasingworkplace safetyIncreasing employeewell-being88 percent of U.S. employeessaid that General Mills is agreat place to work in 2012.*Our Board of Directors includes31 percent female directors and 23 percentwho are people of color. Our U.S.workforce includes 40 percent womenand almost 20 percent people of color.We reduced our total injuryrate, improving from 2.11 injuriesper 100 employees in 2011 to1.79 in 2012. Our ultimate goalis zero injuries and illnesses.36 percent of our U.S. employeesparticipated in voluntary healthassessments in 2012. We offerhealth and wellness programsfor employees worldwide.Health Environment Sourcing Workplace CommunityOverviewA great place to work – Employees recognize our efforts to foster a positive and rewarding work environment by consistently identifying General Mills as“a great place to work.” In 2012, we received workplace awards in Australia, Canada, China, France, Greece, India, the U.K. and the U.S., where we also werenamed one of the World’s Most Admired Companies by Fortune magazine. We recruit, retain and develop talented employees and continue to improveworkplace safety through our efforts to prevent injuries and illnesses. We support our employees in being active, eating healthy and staying well.*2012 Great Place to Work Institute,representative sample of U.S. employees
  • 58. Our approach: inspiration & actionBuild a strong workplace cultureA Setting clear expectationsB Fostering diversity and inclusionC Rewarding employeesMaintain a safe workplaceA Leading with safetyOur strategies and actionsp.57p.61p.63We work hard to earn our employees’ respect and trustAt General Mills, we know that engagedemployees drive customer value andbusiness performance. Our mission andculture, our brands and business practices,and our commitment to a clear Code ofConduct helps inspire our employees.Our company leadership maintains the highestethical standards when conducting business,and they honor and acknowledge employees’contributions to the company’s success.The best companies win committed employeeswho grow and develop to achieve their highestpotential, making significant contributionsto the business. This is especially true – andimportant – at General Mills, because we hirepeople for a career, not for a specific job. Ourmotivated and talented employees have anopportunity to innovate, contribute and lead.We also encourage a healthy work/life balanceand promote safe, injury-free workplaces.We believe that the way employees view theirmanagers is one of the most significant driversof engagement, success and satisfaction.Recently we launched a multiyear program,called Great Managers, to inspire and empowermanagers at every level of the company withthe tools and resources to become betterleaders so they can support and challengeemployees to achieve their full potential.Respect, develop andinvest in employeesA Empowering employee healthB Investing in development and training123Health Environment Sourcing Workplace CommunityGeneral Mills Global Responsibility 56
  • 59. In 2012, General Mills wasranked No. 1 on the list ofAmerica’s Most ReputableCompanies by Forbes andthe Reputation InstituteBuild a strong workplace culture1 Setting clear expectations for ethics and complianceAt General Mills, doing the right thing is notleft to chance. Our comprehensive Codeof Conduct and ethics and complianceprogram promote ethical behavior in allaspects of our employees’ work. We treatour employees with respect and integrity.ConductOur Champion’s Code of Conductsummarizes our ethics guidelines andgives employees practical information aswell as answers to their questions. Thecode covers everything from maintainingcorporate integrity, communicatingappropriately, and competing fairly andlegally to personal safety, appropriateuse of company resources and ensuringconsumer privacy. Annually, our companyleaders – from managers upward,approximately 14 percent of our employees– must attest to compliance with our Codeof Conduct and business conduct policies.We have high expectations for ethicalconduct in every aspect of our business.EthicsThe motto for our Ethics & Complianceprogram is “Every Decision, Every Action,Every Day.” The program includes extensiveonline resources and self-directed coursesfor employees along with our confidentialEthics Line, which allows employees toraise questions or report questionableconduct anonymously, where allowedby law, and an orientation video thatintroduces new employees to GeneralMills’ ethics philosophy. The program alsofeatures “Ethics Matters,” a collectionof stories published by the Ethics &Compliance group that puts policiesinto practice by providing real, concreteexamples of ethical lapses and choicesthat reflect a great deal of integrity.AssessmentWe also take steps to analyze risks relatedto corruption. We recently conducted acomprehensive corruption risk assessmentacross our businesses around the world.This assessment included analysisof specific business operations data,geographic corruption risk, electronicemployee questionnaires and liveemployee interviews. The results of this riskassessment were then used to inform ourglobal anti-corruption compliance programand internal anti-corruption controls.We include corruption as a risk factor inthe annual risk assessment fielded by ourGlobal Internal Audit function. This riskassessment touches all of our businessunits around the world. In addition, we askdetailed questions related to corruption riskduring each routine, in-depth business unitaudit by our Global Internal Audit team.SO2Do the right thing, all the time1Ar At General Mills, employees are encouraged to do the right thing, all the time.“Every single one of us is personally responsible for upholdingour reputation as a highly ethical company. When we thinkabout integrity and ethics, it is our everyday decisionsthat are most important.” – Ken Powell, CEO, General MillsHealth Environment Sourcing Workplace CommunityGeneral Mills Global Responsibility 57
  • 60. ActionAll allegations of bribery and corruptionrelating to General Mills’ businessoperations are promptly and thoroughlyinvestigated, in accordance with ourethics and compliance procedures andcorporate policies. Upon completion ofthe investigation, our Ethics & Compliancegroup oversees appropriate disciplinaryactions (including termination of third-party relationships), remediation stepsand internal/external reporting.SO4OrganizationalresponsibilityOur Ethics & Compliance group, led byour Chief Compliance and Risk Officer, iscommitted to upholding General Mills’long-standing culture of integrity byensuring that employees know what itmeans to behave ethically and to act incompliance with our Code of Conduct.Key business leaders throughout ourglobal operations own responsibility forethical market and brand development.U.S.n 100 Best Companies to Work For,Fortune magazinen Worlds Most AdmiredCompanies, Fortune magazinen Worlds Most InnovativeCompanies, Forbesn Working Mother magazine100 Best Companiesn Worlds Best MultinationalWorkplaces, Great Place toWork Instituten 100 Best Corporate Citizens,Corporate Responsibility magazineAwards, honors and accoladesGeneral Mills receives a wide array of workplace awards and honors annually. We value the objective, third-party recognition of our commitmentto being a great place to work. General Mills received numerous awards in 2012. The map below showcases some of our global recognition.Australian Australian Business Award forRecommended Employer in theFood IndustryCanadan Best Workplaces in Canada,Great Place to Work InstituteChinan Best Employer Award,Guangzhou Daily newspaperIndian Best U.S. Company in India inFMCG (fast moving consumergoods), Indo-AmericanChamber of CommerceFrancen Best Workplaces in France,Great Place to Work InstituteU.K.n Great Place to Work InstituteLaureate Awardn Best CompaniesGreecen Best Workplaces in Greece,Great Place to Work InstituteHealth Environment Sourcing Workplace CommunityGeneral Mills Global Responsibility 58
  • 61. Fostering a culture of diversity and inclusionAt General Mills, we value diversity andconsider it core to our business strategy.Our goal is to build an employee base thatmirrors the consumers of our products.Attracting, retaining and developingemployees with a variety of backgroundsis a top priority. For example, almost20 percent of our U.S.-based employees arepeople of color and 40 percent are women.General Mills creates a diverse workforceby recruiting the best and brightesttalent from all communities to driveinnovation and consumer engagementaround the world. To cultivate aninclusive environment, we respect alldimensions of diversity – gender, raceand sexual orientation as well as culturalvalues, preferences and beliefs. Wepublically demonstrated this respectduring the 2012 U.S. election cyclewhen General Mills opposed theproposed constitutional amendment onmarriage in the state of Minnesota.We increase our ethnic and genderdiversity by assessing our hiring needsfor women and people of color, andimplementing strategies to meetthose needs. We engage in effectiveoutreach efforts – including searchfirms, community groups, professionalorganizations and employee referrals.Our leaders focus on personal objectivesregarding diversity and inclusion. Each ofour plants also creates and implementsa diversity and inclusion strategic plan.LA13Employee networksand associationsMembers of our employee networkssupport each other and help recruit newemployees by increasing confidencein General Mills’ approach to diversityand inclusion. Our employee networksinclude: Black Champions Network,American Indian Council, HispanicNetwork, Asian Heritage Network, SouthAsian Network, Middle East NorthAfrican Network, Veterans Network andBetty’s Family for gay, lesbian, bisexualand transgender (GLBT) employees.Taking action through hiring practices, employee development and measurement1B“When you combine diversity with a culture thatacknowledges, respects and values all of our differencesand similarities, good things happen. We are able toconnect with our consumers, customers and communities.We reap new ideas and innovation. And we recruitand retain the talent to win now and in the future.”– Kenneth Charles, Vice President, Global Diversity & Inclusion, General Mills94%A record-setting 94 percentof our employees sayGeneral Mills providesa working environmentaccepting of differences inbackground and lifestyle.RecognitionGeneral Mills’ efforts to create aninclusive, supportive workplacewere recognized by a number oforganizations in 2012, including:n Best Companies forMulticultural Women,Working Mother magazinen Top 50 Companies forDiversity, DiversityIncn 40 Best Companiesfor Diversity, BlackEnterprise magazinen 50 Best Companies for Latinas,LATINA Style magazinen Best Companies for Hispanics,HispanicBusiness Median 50 Out Front, DiversityMBA magazinen Top Companies for ExecutiveWomen, National Associationfor Female Executivesn Top 50 Employers, WomanEngineer magaziner General Mills attracts, retains and develops adiverse workforce – reflecting the broad base ofconsumers who enjoy our products.Health Environment Sourcing Workplace CommunityGeneral Mills Global Responsibility 59
  • 62. We also sustain relationships withprofessional associations, including theNational Black MBA Association andNational Society of Hispanic MBAs.Supplier diversityOur Supplier Diversity efforts are areflection of our commitment to nourishlives through job creation and bystrengthening the economic footprintof communities across the U.S. In 2012,our first-tier spending with minority andfemale-owned businesses exceededUS$570 million, and over the past 10years we’ve grown our first-tier spendingby 9 percent compounded annually.We are committed to establishing andgrowing successful business relationshipswith an increasing number of qualifiedminority and women-owned enterprises.Fulfilling this commitment is importantto our shareholders, our increasinglydiverse consumer base, the communitiesin which we operate and, ultimately, thesuccess of our company. Each division ordepartment establishes annual objectivesand plans that lead to measurableimprovement in diversifying our supplierbase. The Supplier Diversity departmentat General Mills advocates for andsupports the business development ofdiverse suppliers by creating networkingand training opportunities for minorityand female-owned businesses.EC6 Rewarding employees and ensuring equal opportunityWe believe our compensation, benefitsand incentive plans are among the bestin our industry. At General Mills, wevalue our employees and reward themwith a competitive “Total Rewards”compensation and benefits package. Weare a pay-for-performance culture, soincentive payments and merit increases aredirectly linked to employee performance.We offer competitive pay, retirementprograms and employee and educationassistance programs. Implemented in2009, our annual performance and awardsstatement was developed and revisedin response to employee suggestions.LA3Labor-managementrelationsGlobally, General Mills is committedto providing both our union andnon-union production employeesworkplaces that are among the safestmanufacturing facilities in the world.In addition, we work to have total employeeengagement as the foundation of ourmutual success, strive to create culturesthat champion respect and inclusion, andoffer competitive rewards. We have clearhealth and safety practices that includejoint management-employee health andsafety teams and committees; participationof workers and/or worker representativesin health and safety inspections, auditsand accident investigations; as well as useof personal protective equipment, trainingand periodic inspections. We maintaingood relationships with our unions, andour labor contracts are typically settledon time and without work disruption.LA6, LA9Equal opportunityGeneral Mills prohibits discriminationbased on age, race, sex, nationalorigin, disability, citizenship, sexualorientation or other characteristicsCreating a culture of fairness, trust and openness1Cr We value our employees and reward them fortheir contributions to our company’s success.Purchasing history with minority and women-owned suppliersFiscal YearSpend(inmillionsofUS$)$700$600$500$400$300$200$100$020062004 20052003 2007 2008 2009 2010 2011 2012$266 $319 $342 $362 $453 $558 $600 $534 $552 $570Health Environment Sourcing Workplace CommunityGeneral Mills Global Responsibility 60
  • 63. protected by law. This equal employmentopportunity (EEO) policy applies toemployment practices and proceduresincluding compensation practices.Employees are expected to reportsituations that compromise their abilityto do their jobs. Formal channels areavailable for employees who seek adviceor a solution. Everyone has the rightto work without fear or intimidation.General Mills does not accept abusiveconduct or harassment – a policy madeclear from an employee’s first day oforientation. Our policies strictly prohibitretaliation against employees who expressconcerns. We manage our businessoperations so that employees feel theyare being treated fairly. We value ourrelationships with our employees andinvest in them for the long term.Organizationalresponsibility,monitoringand follow-upGeneral Mills has established keymetrics and measurement approaches tounderstand our performance as it relates tolabor and decent work. Examples includea refined performance managementprocess, annual employee surveys anda clearly articulated Code of Conduct.Responsibility for upholding our workplacecommitments starts at the top and extendsacross the organization. Our Chairmanand CEO has ultimate accountabilityfor ensuring a healthy, productive andmotivated workforce. Governance for ourlabor practices lies primarily within ourHuman Resources, Law and Supply Chainorganizations. At an operational level, theHuman Resources organization leads keyemployee initiatives in partnership withcompany business leaders at multiplelevels. Reflecting the importance of peopleto our business, General Mills has a vicepresident of Global Diversity and Inclusion;a vice president of Global Health Services;a vice president of Engineering, GlobalSafety and Environment; and a ChiefLearning Officer. At the board level, theCompensation and Public ResponsibilityCommittees maintain responsibility forissues related to labor and decent work.Maintain a safe workplace2 Leading with safetyOur ultimate workplace health andsafety goal is zero injuries and illnesses.Achieving that goal requires supportfrom company leadership, improvementsin our safety culture, and systems tomanage and track progress and results.In 2012, we laid the groundwork ineach of those important areas.LeadershipIn 2012, we made “Lead with Safety”the top priority across our supplychain, followed by generating return oncapital and growing our business. Webelieve that the discipline required toensure food safety and the safety ofour people will drive other priorities aswell. During the 2012 calendar year, werestructured our global safety team tosupport our focus on leading with safety.CultureIn the summer of 2012, we began rollingout an awareness-building campaignfocused on creating a culture of safety.The “What if” campaign, which targetsour production employees, challengesemployees to think about how theirdecisions and actions can lead to injury-free workplaces. Part of a companywideeffort, the campaign supports our goal ofhaving zero workplace injuries. We arerolling out the campaign across our GeneralMills manufacturing plants throughoutfiscal 2013. Building on momentum, welaunched our revised safety principlesBuilding a safety culture and tracking our progress2Ar “Lead with Safety” is the top priority acrossour supply chain. Our “What if” campaign raisesawareness to help prevent injuries.Health Environment Sourcing Workplace CommunityGeneral Mills Global Responsibility 61
  • 64. across our North American operations inJanuary 2013. Our three safety principlesare: we lead with safety, every incident ispreventable, and we are all accountable.Tracking andmanaging progressIn 2012, General Mills invested in a newglobal safety tracking and environmentalmanagement system, called G-STEMS.G-STEMS allows us to track all workplaceincidents – even those near-misses thatdid not result in an injury – and alsodocument the completion of necessaryactions to reduce future risks andcommunicate progress. Now we areupdating the system to include mobiledevice access and enhanced languagecapabilities. Our goal is to expand toother locations during 2013 and establishG-STEMS in all global production facilitiesby the beginning of fiscal 2014. Safetyresearch shows that for every injury,there are typically several other incidentsthat serve as predictors. Capturing thatinformation and following up to resolveissues will help improve workplace safety.Clear safety targetsHistorically, General Mills has had a verystrong safety record when compared withour peer food group manufacturers. Ourcorporate policy for workplace health andsafety directs all operations to implementmanagement systems, programs andprocedures that will lead the company toour goal of zero injuries and illnesses. Wehave set interim improvement targets,which are the basis for our plant safetymetrics. General Mills has established clearsafety targets specific to each locationand measures progress. In fiscal 2012,we reduced our total injury rate from 2.11injuries per 100 employees in 2011 to1.79 in 2012 and maintained our lost-time accident rate of 0.66. Sadly, we hadone employee fatality in fiscal 2012. Thedeath of one of our long-time employeesoccurred following a rail car accident at ourLodi, California, plant. Efforts by respondingemployees and emergency medicalpersonnel to resuscitate were unsuccessful.LA7Responsibility, trainingand auditingWorkplace health and safety is theresponsibility of line management andeach individual employee. All employeesare expected to work safely by followingall rules, procedures and training.Employees are trained in all applicablehealth and safety subjects relevant totheir jobs. This training helps ensurethat all employees know how to performtheir jobs correctly and to comply with alllocal, regional and country requirements.As part of the safety management systemat General Mills, manufacturing locationsare encouraged to have safety committeemeetings on a periodic basis (e.g., monthly).The committee is organized by the formaland/or informal safety leaders and consistsof wage and management employees.LA6General Mills has an active auditingprogram to monitor our operationsto ensure compliance with all internalrequirements and external regulations. Anydeficiencies identified are tracked untilcompletion. Senior-level responsibility forworkplace safety lies with the Directorof Global Safety and Environment, whoreports to the Vice President of Engineering,Global Safety and Environment.r We reduced our total injury rate in 2012 to 1.79 injuries per 100 employees at our productionfacilities around the world. LA7General Mills injury history 1975 to date14.0012.0010. 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12r Our workplace safety culture reinforces three principles as we work to achieve our goal of zeroinjuries and illnesses: we lead with safety, every incident is preventable, we are all accountable.North America – Total Injury RateNorth America – Lost-Time Injury RateGlobal Total Injury RateGlobal Lost-Time Injury RateHealth Environment Sourcing Workplace CommunityGeneral Mills Global Responsibility 62
  • 65. Respect, develop and invest in employees3 Empowering employee healthOur employees – whether on amanufacturing line or working atheadquarters, union or non-union – arecore in our mission and the key to oursuccess. We value them and providebenefits specific to the needs ofeach geography, including retirementsavings plans, health care coverageand flexible work arrangements.Balance and flexibilityWe dedicate resources to helpemployees balance the demandsof work and personal life.The General Mills culture has emphasizedthe importance of work/life balance fordecades. We offer special leave programs,an on-site health clinic at headquartersand fitness centers at several of ourplants and office locations. We also offermultiple flexible work arrangements toaccommodate employees, includingtelecommuting, flextime and the innovativeFlexible User Shared Environmentsprogram, which allows employees tocreate workspaces that best suit theirpersonal and business needs. Oureducation and referral program providesinformation and resources on importantsubjects such as child care, adoptioninformation, elder care and more.Our programs to help employees balancetheir work and personal lives extendfrom our headquarters to our locationsworldwide, including plant employeesand field sales employees. On anannual basis, we evaluate our work/life balance programs in an effort tomeet employees’ changing needs. Wehave a work-flex strategy focused onincreasing the work/life balance programsthroughout the company, includingpartnerships with community-basedprograms, flexible work arrangements,and wellness and fitness programs. We’reproud of the progress we’ve made.Health and wellnessWe support our employees in beingactive, eating healthy and staying well.For 28 years, General Mills has providedresources that help employees live healthylifestyles. We encourage our employeesto take a personalized health assessmentthat helps identify risks, motivate lifestylechanges, and provide information abouthealth and wellness resources. In 2012,36 percent of our U.S. employees tooka voluntary health risk assessment – anincrease from 35 percent in 2011. Weare hoping to see that number continueto grow – 71 percent of U.S. employeeshave committed to completing ahealth assessment in 2013. The 2012assessments of participating employeesshowed improvement since 2009 in fiveof the nine health risks we measure.Supporting work/life balance and wellness3AWATCH VIDEOr Supporting work/life balanceat General Millsr GeneralMillsoffersmultipleflexibleworkarrangementsforemployees.r Employees check their blood pressure andrecord their weight at stations in 29 of our U.S.facilities. More than 7,000 employees haverecorded over 250,000 blood pressure andweight readings since 2009. Sixty percent of theemployees who logged in more than 50 timesduring a two-year period lost weight (an averageof 11.5 pounds).LA8WATCH VIDEOr Health and wellness at General MillsHealth Environment Sourcing Workplace CommunityGeneral Mills Global Responsibility 63
  • 66. Recognitionn Start! Fit-Friendly Company,American Heart Association,United States – GeneralMills has received thisaward annually since2007 (Platinum level)n Best Employers for HealthyLifestyles, National BusinessGroup on Health, UnitedStates – General Mills hasreceived this award annuallysince 2007 (Gold level)n National Health and Well-being Award, New ZealandHeart FoundationOur wellness programs are an integralpart of our culture. We invest in wellnessprogramming, which continues to haveleadership support from the top of theorganization. The programming is basedon a strategy of empowering employees tobring wellness to life and creating physicalspaces that support a culture of wellness,such as on-site fitness centers, healthydining choices and safe walking spaces. Weare also working toward being a tobacco-free company. We continue to createinnovative programming to meet the ever-changing needs of our employee population.As a food company, nutrition and eatingright are primary concerns for ourconsumers and for our employees. GeneralMills sponsors a number of weight lossand weight management programs tohelp employees take better care of theirbodies and their long-term health.Our LifeWorks Employee Assistanceprogram provides confidential counseling,emotional support, and referrals toemployees and their families in the UnitedStates. Counselors assist employeesdealing with stressful situations throughon-site face-to-face counseling, toll-free phone access, online resources,and educational materials. ThroughLifeWorks sponsorship, some locationsalso offer on-site support groups. Ourworldwide employee assistance programis available to help global humanresource professionals find resources andinformation to support employee issues.General Mills participated on the advisoryboard of the World Economic Forum’sWorkplace Wellness Alliance in 2012,focusing on promoting workplace healthand raising awareness about the impactof chronic disease globally. We willcontinue to stay engaged as the alliancetransitions to become part of the Institutefor Health and Productivity Management.LA8OrganizationalleadershipWe launched a new global health andwellness advisory council in January 2013to provide more support for wellnessprograms around the world. Councilparticipants connect on a quarterly basis toshare best practices and resources. Overallresponsibility for health and wellness lieswith the Vice President of Global HealthServices and Chief Medical Officer.r We support the health and wellness of ouremployees by encouraging proper nutrition,activity and well-being.r IntheU.K.,HealthyHighlightsarepostedinemployeerestaurantstoreinforcehealthyfoodchoices.Healthiermealsfromtheon-sitecateringoptionsalsoaremoreheavilysubsidizedtoencouragenutritiousselections.AtourUxbridge,U.K.,facility,employeesrecordedatotalweightlossofmorethan150kilogramsin2012.Thelocationalsohasawellnessconsultantofferingadviceonpersonalhealthandwell-being. Investing in development and trainingAt General Mills, we know that engagedemployees drive customer value andbusiness performance. We are single-minded when it comes to development –we plan for it, we invest in it, we track itand evaluate it. It is essential to developall employees - production employees,salaried employees, managers andexecutives alike – and we work to have adepth of leadership prepared to take onnew responsibilities, when necessary.Globally, 87 percent of our managersare promoted from within the company.General Mills consistently receives externalrecognition for our performance in this area.Developing our people3BHealth Environment Sourcing Workplace CommunityGeneral Mills Global Responsibility 64
  • 67. We support the efforts of our employeesto lead active, healthy lifestyles fueledby good nutrition and overall well-being.Listed below is a sampling of health andwellness programs around the world.U.S. and Canada:In2012, more than 2,700General Mills employeesin the U.S. and Canadaparticipated in the GreatAmerican Fitness Challenge,a program that encourages participants toexercise at least 30 minutes per day for eightweeks. The challenge got people out biking,walking, running, gardening and more – fora grand total of 6.1 million minutes reportedexercised, equaling an average of four-and-a-half hours of exercise per person per week.In addition, General Mills’ headquarters inMinnesota was named a “bicycle friendlybusiness” by the League of American Bicyclists.Spain: In San Adrian, our cardiovascularrisk reduction program has been helpingto increase awareness about the maindrivers of cardiovascular risk since 2009.The program continues to reduce riskfactors among employees, includingcorporal mass index improvements andsmoking cessation. Becoming a tobacco-free workplace is a companywide goal.Mexico: More than 50 employeescompeted in races to improve their fitnesslevels and tracked their weight loss – eachkilometer raced and kilo lost represented acontribution to benefit Fundación FamiliarInfantil, a local children’s charity.U.K.: General Mills participates in the U.K.Public Health Responsibility Deal pledge tohelp improve levels of employee health andwell-being, including focusing on physicalactivity. Our U.K. operations have seen areduction in the number of employee workingdays lost year-on-year, with current levelsbelow targeted U.K. industry standards.New Zealand: As part of its year-roundfocus on wellness, the New Zealand teamoffers regular activities emphasizing weightmanagement, nutrition, physical activity andstress management. In 2012, 96 percent ofemployees created a personal health goal,then participated in activities working towardthose goals. Employees have reported feelinghealthier and better about themselves, losingweight, increased physical activity, andbeing more engaged and focused at work.China:All employees receive free physicalcheckups. Our on-site clinics also providecare and health tips to factory employees.At our Shanghai office, employeesnow have access to a gym space.Encouraging activity and well-being around the world LA8r General Mills received an award from the NewZealand Ministry of Health.r EmployeesinMexicorantogether.At General Mills, development takesmany forms and includes performanceappraisals. In the U.S., opportunitiesrange from employees’ IndividualDevelopment Plans (IDP) to our GreatManager initiative, as well as mentoring,peer networking and courses at theGeneral Mills Institute. We also offernumerous courses and online learningclasses that support professionaldevelopment. General Mills providesseverance benefits to employeeswho are impacted by downsizing.The severance benefits includecompensation as well as professionaldevelopment assistance from anexternal organization that providesoutplacement services.LA11, LA12General Mills is proud that 91 percent of our officers have beenpromoted from within the company. More than 50 percent startedtheir careers at entry-level positions with General Mills, and40 percent come from non-officer roles. Contributing to thiscontinuity in leadership is the company’s broad-based commitmentto leadership development.LA11In 2012, General Millsinvested US$21 million intraining and developmentfor U.S.-based employees.LA10$21millionWATCH VIDEOr Biking to work is a preferred activityof many employees – hear why.Health Environment Sourcing Workplace CommunityGeneral Mills Global Responsibility 65
  • 68. COMMUNITYOur goal is to build strongcommunities. Our philanthropic workis an extension of the company’sNourishing Lives mission and tiesclosely to our company’s core business.We work in innovative ways withpartners at the global, national andlocal levels to harness our collectiveimpact in key target areas, whileengaging employees through skills-based and other volunteerism.Our General Mills Foundation andcommunity engagement mission isto nourish our communities globallywith remarkable philanthropy.Our strategiesAlleviatehunger andadvancenutritionwellnessImproveeducationStrengthencommunities
  • 69. General Mills GLobal Responsibility 67Performance dashboardWe alleviate hunger.More than US$37 million in productdonations around the world.200 food processors (sourcing from 100,000+ smallholderfarmers) supported through Partners in Food Solutions.We advance nutrition wellness.US$500,000 in Champions for Healthy Kids grants.We improve education.2,400 girls and 100 teacherssupported in residential schoolsthrough Join My Village in India.US$60 million raised for schoolsby General Mills brands throughBox Tops for Education.We strengthen communities.More than US$27 million in grantsto local nonprofit organizations in48 communities worldwide.2,500 employees from 60 locationsparticipated in “Think Global, VolunteerLocal” initiatives around the world.Health Environment Sourcing Workplace CommunityOverviewNourishing our communities – In fiscal 2012, General Mills donated more than US$143 million (nearly $3 million a week) to key initiativesthat support our communities around the globe. General Mills has given more than US$1 billion to charitable causes worldwide since theGeneral Mills Foundation was created in 1954.Corporate Contributions/Brand PartnershipsProduct DonationsFoundation Grants$27.6million$37.7million$77.9millionThe amount we gave to charitablecauses in fiscal 2012$143+million “To us, remarkable philanthropy lies at theintersection of the world’s greatest needs andour company’s unique strengths. That is whywe focus our philanthropic and communityengagement efforts on alleviating hungerand advancing nutrition wellness, improvingeducation and strengthening communities.”– Ellen Goldberg Luger, Executive Director, General Mills FoundationNourishing Educating StrengtheningEC1
  • 70. Our approach: connect & leadOur strategies and actionsWe bring together resources, partners, innovative ideas andemployee expertise to make an impact around the worldOur commitment to building strong communitiesincludes providing grants from the GeneralMills Foundation, donating food productsfrom our businesses, supporting brand/cause partnerships, and encouraging andenabling high-impact employee volunteerismaround the globe. Through their skills-basedvolunteerism, our employees address localneeds and deliver results. The combined impactof these initiatives produces positive changein our key focus areas: alleviating hungerand advancing nutrition wellness; improvingeducation; and strengthening communities.We look for opportunities to connect the manystakeholders within a community and to leverageexisting programs in new ways for maximumimpact. One example of this approach is oursupport of the Minneapolis Youth CoordinatingBoard in our headquarters’ community.This nonprofit group promotes the health,safety, education and overall developmentof Minneapolis youth through jurisdictionalpartnerships, promotion of programs for youngpeople, and resources for parents and teens.General Mills’ community engagementand Foundation programs are led by theExecutive Director of the Foundation withsupport from program officers at headquarterswho are aligned to each philanthropic focusarea. In addition, employee councils locatedacross our key operating locations around theworld assist with the identification and selectionof area nonprofits who have demonstratedan ability to positively impact that localcommunity. The General Mills Foundation isgoverned by a Board of Trustees that includesleaders from the company’s finance, supplychain, marketing, legal, human resources,sales and external relations functions.Strengthen communitiesA Innovating to empower communitiesaround the globeB Increasing impact through employee volunteerismp.743p.69Alleviate hunger and advancenutrition wellnessA Addressing barriers to food security around the worldB Promoting nutrition wellness1Improve educationA Building better futures through educationp.722WATCH VIDEOr Learn more about the scope of workin our communities throughout 2012.General Mills GLobal Responsibility 68Health Environment Sourcing Workplace Community
  • 71. Alleviate hunger and advance nutrition wellness1 Addressing barriers to food security around the worldGeneral Mills has a long-standingcommitment to help feed people in need.Our hunger-relief efforts span the globeand focus on alleviating hunger anduncovering barriers to food security.Donating productsGeneral Mills is consistently ranked amongthe top contributors of food in the UnitedStates. Our contributions to FeedingAmerica and The Global FoodBankingNetwork help nourish people aroundthe world. We’ve donated US$250million in food worldwide since 1999.Feeding America: In 2012, we donatednearly US$36 million worth of foodproducts to Feeding America’s 200 foodbanks across the United States. GeneralMills has partnered with Feeding Americafor more than 30 years. Through thispartnership, we provide nourishmentto Americans struggling with hunger;safe and nurturing places for children tohave a meal; emergency assistance fordisaster victims; and an opportunity foradults trying to break the cycle of povertyand hunger to achieve self-sufficiency.The Global FoodBanking Network:Outside the United States, General Millsdirects product donations to The GlobalFoodBanking Network, an organizationdedicated to creating and strengtheningfood banks around the world. Currently,General Mills is working with thisorganization in the United Kingdom,South Africa, Argentina and Australia,and playing an active role in helpingThe Global Foodbanking Network planand prepare for further expansion toalleviate hunger in other countriesaround the globe. Last year, thecompany donated nearly US$2 millionin food outside the United States.Rescuing foodAround the world every day, food is wasted.In the United States, more than 30 milliontons of food is sent every year to landfills,bypassing the 50 million Americans whostruggle with hunger. Food that is in dangerof going to waste is an area of high priorityfor General Mills. We are continuouslyimproving our operations so that morefood can be saved from the landfill andProviding food and developing solutions EC1, FP41Aw We also supportFeeding America throughour Outnumber Hungerconsumer engagementplatform. We are expandingconsumer awareness andinvolvement in the fight against hunger throughproduct packaging, websites, social media andlive events associated with some of our keybrands, including Bisquick, Betty Crocker, Big Gcereals and Green Giant.v After Superstorm Sandydamaged the U.S. East Coast,General Mills sent more than31,000 cases (nine tractor-trailer loads) of Progresso soupto food banks in New Jersey.“General Mills’ involvement has helped The Global FoodBankingNetwork educate food bank leaders from around the worldthrough our Food Bank Leadership Institute, create newprogramming to feed more people, focus on providing highlynutritional food to children, and continue to develop food banks incountries where they are needed. We are inspired and extremelygrateful.” – Jeffrey D. Klein, President and CEO, The Global FoodBanking NetworkWe donated nearly $36 millionworth of food products to FeedingAmerica’s 200 food banks in 2012.$36millionw In November 2012, General Mills employeesin our supply chain and quality groupshelped redirect food froman overturned truck to afood pantry in New Mexico,including 23 pallets of Yoplaityogurt, Grands! biscuits andPillsbury refrigerated cookies.General Mills GLobal Responsibility 69Health Environment Sourcing Workplace Community
  • 72. In many parts of the developing world,strengthening the food supply chain is one of themost effective ways to raise living standards.General Mills founded Partners in FoodSolutions (PFS), a nonprofit organizationthat focuses on improving mills and foodprocessors in the developing world, as a wayto directly address chronic food supply issuesand extreme hunger in sub-Saharan Africa.In 2012, the U.S. Agency for InternationalDevelopment (USAID) and the Clinton GlobalInitiative recognized General Mills’ work withPFS. USAID Administrator Dr. Rajiv Shahvisited General Mills to honor employeevolunteers who share their business andtechnical expertise through PFS with smalland growing food processors and mills inAfrica. General Mills also was highlightedat the 2012 Clinton Global Initiative annualmeeting. During a session on the future offood, former President Clinton recognizedGeneral Mills for its pioneering work helpingto improve food security across Africa.In addition to General Mills, PFS corporatepartners include Cargill, Royal DSM andBühler, along with implementing partnerTechnoServe and public partner USAID. Overthe next five years, PFS plans to broadenits work to include as many as 10 corporatepartners, working with 500 Africa-basedfood processors, who purchase from morethan 500,000 local smallholder farmersin as many as 12 African nations, therebybenefiting tens of millions of consumers.Partners in Food Solutionsshared with people in need. General Mills’Product Donations Action Team leveragesemployee expertise in supply chainoperations, warehousing, tax, finance andquality to help drive improvements in ourfood donation processes around the world.Our Haverhill facility in Massachusettsis one example of how General Millsincreases food donations and reducesfood waste sent to landfills. The Haverhillwarehouse donated 1.25 million poundsof soon-to-expire food to the GreaterBoston Food Bank in 2012. The foodbank honored General Mills withits “Food Donor of the Year” award.Ingredients: We also find ways todonate bulk items and ingredients,saving millions of pounds of ediblefood from landfills every year. In 2012,we saved US$650,000 of surpluspineapple pouches from going to waste.We partnered with Feeding Americato repack and re-label the items.r Through Partners in Food Solutions (PFS), we are improving access to more locally sourced, nutritiousand safe food at affordable prices for both food aid and local retail markets in sub-Saharan Africa.General Mills’ work with PFS was recognized by the USAID and the Clinton Global Initiative in 2012.WATCH VIDEOr Learn more about Partners inFood Solutions.WATCH VIDEOr Former U.S. President Bill Clinton speaksabout PFS at the Clinton Global InitiativeAnnual Conference in September 2012.“The greater challenge is to help countries become more‘food secure’ so they won’t need aid and so they can tradewith us, create jobs and grow their economy. We seek strongpartnerships with American corporations. We can get morevalue for our taxpayers’ money.”– Dr. Rajiv Shah, Administrator, U.S. Agency for International DevelopmentPFS results to daten 300 food companies andprocessors in Kenya, Zambia,Tanzania, Malawi and Ethiopiahave received training andsupport since 2008.n More than 131,000 localsmallholder farmers – andtheir 786,000 familymembers – benefit as theysupply these processors.n Nearly 500 skilled employeesfrom corporate partnerorganizations have participated.n More than 40,000 hourscontributed by these volunteershave supported more than150 individual projects.General Mills GLobal Responsibility 70Health Environment Sourcing Workplace Community
  • 73. Agricultural surplus: In September 2012,General Mills and others in the foodsupply chain worked together to rescue600,000 pounds of freshly harvestedsweet corn that was transformed into465,000 meals eaten by people in 10U.S. states. Read more about this success,known as “The Great Corn Rescue.”Expanding accessto foodWe support programs that expand people’saccess to food. In Minnesota, GeneralMills is a founding supporter and strategicpartner of Hunger-Free Minnesota,providing charitable contributions, productdonations, expertise and employeeengagement at all levels of the company.We have committed US$2 million to thismulti-year campaign focused on fightinghunger and closing the “missing mealgap” by increasing the amount of foodavailable through the emergency foodsystem by 50 million meals; adding 30million meals through increased enrollmentin the Supplemental Nutrition AssistanceProgram; and adding 20 million meals byincreasing enrollment in and use of publicnutrition programs for children and families.In Canada, we support Breakfast Clubs ofCanada (BCC), a nonprofit organizationthat provides breakfast programs tounderserved youth. In 2012, GeneralMills granted US$100,000 to fund ninemulti-ethnic and First Nations breakfastprograms across Canada, providingnutrition training and food – includingnearly 350,000 breakfasts served tomore than 2,100 students.In Europe and the U.S., our employees cultivate“Giving Gardens” to provide fresh vegetables tolocal communities. More than 3,000 pounds oforganic vegetables grown in the garden at ourheadquarters have been donated to food shelvesand meal programs in Minnesota. In Germany, wesupport the Gardens for Children project, which helpsurban children plant and tend school gardens. Theproject combines age-appropriate physical activitywith basic instruction about healthy nutrition.Giving Gardensr Employee volunteers laid the groundworkfor a garden that will be tended to byschoolchildren in Hamburg, Germany.r In 2012, General Mills China funded nutritiousmeals for more than 1,000 students at four schoolsin Yunnan’s Xuanwei region, which is one of thepoorest in China with high rates of malnutrition. Promoting nutrition wellnessWe advance nutrition wellness byhelping families make nutritiousfood choices and integrate foodwith healthy, active lifestyles.Champions for Healthy Kids: OurChampions for Healthy Kids programimproves the fitness behaviors andnutritional knowledge of America’s youth.We developed the program in 2002 inpartnership with the Academy of Nutritionand Dietetics Foundation. Since thattime, we have funded 460 programs andreached nearly 1 million kids throughgrants totaling US$5 million.Presidential Youth Fitness Program: In2012, General Mills and the President’sCouncil on Fitness, Sports and Nutritionlaunched the Presidential Youth FitnessProgram, providing new school-basededucation assessment tools and fitnesseducation program resources. As theInaugural Presidential Sponsor, theGeneral Mills Foundation’s support ofthe program includes US$10 millionover six years (2012 – 2018), includingUS$1 million of in-kind marketingsupport, which will enable the newprogram to expand to reach 90 percentof U.S. schools, helping studentspursue personalfitness goals andpromote lifelongphysical activity.EC1, FP4Integrating food with healthy, active lifestyles1Br The Champions for Healthy Kids programboosts the nutritional knowledge and improvesthe fitness behaviors of U.S. kids.General Mills GLobal Responsibility 71Health Environment Sourcing Workplace Community
  • 74. Improve education2 Building better futures through educationWe support programs around the worldthat help increase access to educationand raise achievement levels. Ourcontribution of funds, expertise andcollaboration are boosting the impactof innovative education programs.Educating girls inAfrica and IndiaOne of those initiatives is Join My Village.Since launching in 2009, Join My Villagehas given thousands of girls the abilityto advance their education by helpingstrengthen and expand local schooleducation, building homes for teachersin remote communities and providinghundreds of scholarships for girls tocontinue to secondary school. The programbegan in Malawi, Africa,and expanded to India in2012. Join My Village isa partnership withGeneral Mills, Merckand the humanitarianorganization CARE.Increasing access to education, partnering to improve education EC1, FP42Av In 2012, we expanded Join My Village to India, where 40 percent of girls under age 14 don’t attendschool. Join My Village helps improve schools and provides scholarships, reaching 8,500 girls in Indiaduring the first year.n More than 13,000 children havegained access to classroomand reference materials.n 802 secondary schoolscholarships have been given.n More than 230,000 people havebeen helped through maternalhealth education projects.n 8,500 girls have beensupported academically at24 residential schools in India.n 21 homes have been builtfor female teachers.n More than 150 girls have participatedin an Udaan accelerated learningprogram for older studentswho never attended school.Join My Village results to dateWhy girls and education?n Education creates a pathway out of extreme poverty.n Globally, there are 33 million fewer girls than boys in primary school.n A child born to a literate mother is 50 percent more likely to survive past age 5.n A girl with an extra year of education can earn 20 percent more as an adult.n Educated mothers are twice as likely to send their own children to school.General Mills GLobal Responsibility 72Health Environment Sourcing Workplace Community
  • 75. r In the UK, General Mills launched an innovative “floating classroom” in 2012 to provide studentswith hands-on education about geography, history, heritage, the environment and science on thewaterways of England. The team was recognized as the 2012 “Outstanding Philanthropic Program”at the Global Angel Awards in London.The General Mills Foundation supports College Possible, a nonprofit organization that helps low-income high school students earn admission to college and succeed once there. Overall, 98 percent ofstudents assisted by College Possible have earned admission to college. In addition, College Possiblestudents are graduating at more than five times the rate of their low-income peers.Making college possible+In 2012, Box Tops forEducation raised morethan US$74 million.$74millionExpanding educationalresources and closingthe achievement gapIn 2012, our Box Topsfor Education programand its affiliatesraised more thanUS$74 million for K-8 schools in the U.S.,including US$60 million from GeneralMills brands. Since inception in 1996,this program’s fundraising has exceededUS$525 million and reached more than90,000 schools across the United States.More than 240 of our brands participatein Box Tops for Education, includingGeneral Mills brands such as Cheerios,Betty Crocker, Pillsbury, Hamburger Helper,Old El Paso, Progresso and Green Giant.In our headquarters community, weare collaborating to help close theeducational achievement gap thatexists between students of color andtheir white counterparts. Throughfunding and direct involvement withorganizations and initiatives like GenerationNext, AchieveMpls, and the NorthsideAchievement Zone (modeled after theHarlem Children’s Zone), General Mills ishelping bring together an unprecedentedpartnership of key education, community,government and business stakeholdersdedicated to accelerating educationalachievement for all children – fromearly childhood through early career.Promoting earlychildhood educationThrough our Spoonfuls of Stories programin the United States, we have distributed70 million children’s books since 2002inside specially marked boxes of Cheerioscereal and have donated US$4 million toFirst Book, a nonprofit children’s literacyorganization. In 2012, we expandedSpoonfuls of Stories to our Honey NutCheerios and other Cheerios varietiesto help distribute even more books tokids and encourage parents and childrento read together. The in-pack bookstarget children 3 to 8 years old and areprinted in both English and Spanish.We have distributed 70 millionbooks through our Spoonfulsof Stories program.70millionGeneral Mills GLobal Responsibility 73Health Environment Sourcing Workplace Community
  • 76. Strengthen communities3 Innovating to empower communities around the globe Increasing impact through employee volunteerismWe strengthen communities from theground up by supporting nonprofitorganizations that are making a differencearound the world. We partner with UnitedWay Worldwide and provide grants tosupport local efforts in the communitieswhere General Mills operates.We focus on helping women gainlivelihoods and support their communities.The work we are doing to educate girlsthrough Join My Village also extendsto women. Through Join My Village, weare, among other things, helping establishvillage-based savings and loans. Since 2009,more than 6,700 women and families havebenefited from village savings and loansmade possible by Join My Village. As General Mills’ business has expanded inChina, so has our community engagementand philanthropic activity. Since 2008,General Mills has donated more thanUS$460,000 to the China Women’sDevelopment Foundation to constructwater cellars for villages in western China’sdrought-parched Shaanxi, Gansu andNingxia provinces. In this region, womentypically have to walk eight hours a dayto fetch water for household use. Thewater cellars catch and store rainwaterso families have access to clean water. In2012, 400 additional water cellars wereconstructed, bringing the total numberfunded by General Mills to more than1,000 as part of our support to sustainabledevelopment in western China.In several parts of the developing world,we are supporting smallholder farmersthrough our holistic value creationmodel for sustainable development inrural areas. Read more about how weare helping boost farmer incomes inthe Sourcing section of this report.More than 80 percent of General MillsU.S.-based employees volunteer inour communities. We are proud of theresults our employees achieve aroundthe world. Partners in Food Solutions(PFS), for example, thrives on ouremployees sharing their skills. PFS linksthe technical and business expertiseof General Mills employee volunteersand other food industry experts withsmall and growing food processorsand millers in the developing world.Providing resources to nonprofits around the world EC1, FP4Sharing our skills and best practices FP43A3Br Women gain access to education and credit through village-based savings and loan associations.“We ask volunteers for one to two hours a week. It is amazingwhat you can get for a minimal investment of time. The leverageof expertise is far greater than anything you will get out of adollar. It is working, it is measurable, and it is scalable.”– John Mendesh, General Mills Vice President, R&D, for Big G cerealsand Partners in Food Solutions Director of OperationsGeneral Mills GLobal Responsibility 74Health Environment Sourcing Workplace Community
  • 77. Thinking globally, volunteering locallyr In the aftermath of a tornado in Joplin,Missouri, the community lost 155 people andmore than 8,000 homes and businesses. Ouremployees volunteered their time to cleanup and rebuild in 2012; the company donatedUS$100,000 to reconstruct a local school.r General Mills employees in Athens cookedand served meals to people at a homeless shelterthat feeds 200 people daily.r Employees of General Mills in the U.K.partnered with a local nonprofit to constructgreenhouses on school grounds, helpingstudents to grow and eat their own vegetables.The students also created a recipe book toreach even more schools and students.r Employees visited a construction siteand distributed 76 boxes containing food,personal hygiene and clothing items tounderprivileged workers.r Employees cleaned up several sitescontaminated by rubbish in the Forest ofMeudon, learned about recycling and cleaneda coastal beach at Messanges in the Landesregion of France.r General Mills employees in Mumbai, India,volunteer in a program that brings healthand nutrition education to six villages (9,400individuals) via a tribal development project.General Mills has also provided a multiyear grantto support and expand the program.r Employees from our San Adrián facilityteamed up to clean the banks of the Ebro River,while employees from General Mills Ibericaprepared for future planting of regional plantsin environmentally protected areas aroundMadrid. Their hard work will help restore theseecosystems and contribute to the reforestationof the local habitat.We encourage our employees to “Think Global, Volunteer Local” – and in 2012, more than 2,500 employees from more than 60 locations around the world responded byparticipating in our annual volunteer event by the same name. Below is a sampling of their efforts, which reinforce our core values. FP4United StatesGreeceIndiaSpainUnited KingdomDubaiFrance80%More than 80 percentof General Mills U.S.-basedemployees volunteer inour communities.General Mills GLobal Responsibility 75Health Environment Sourcing Workplace Community
  • 78. General Mills Global Responsibility 76Environmental Data Summary*,**,*** 2005 2006 2007 2008 2009 2010 2011 2012Energy usage rate (kWh/metric ton of product) 577 575 577 551 542 528 528 514Energy usage (kWh) EN3, EN4 2,751,525,000 2,766,116,000 2,728,058,000 2,724,411,000 2,665,305,000 2,627,062,000 2,577,278,000 2,396,834,000Direct energy usage by primary source (kWh) 1,508,978,000 1,539,436,000 1,525,505,000 1,469,271,000 1,452,478,000 1,485,244,000 1,449,191,000 1,308,209,000Fuel oil (kWh) 49,036,000 59,263,000 35,326,000 25,957,000 18,939,000 17,431,000 19,143,000 2,749,000Natural gas (kWh) 1,453,395,000 1,460,901,000 1,407,019,000 1,357,066,000 1,363,947,000 1,364,632,000 1,340,525,000 1,236,163,000LP gas (kWh) 4,484,000 5,846,000 4,403,000 2,989,000 14,190,000 16,711,000 3,477,000 1,569,000Biogas (kWh) NA NA NA NA NA 2,000,000 2,000,000 2,000,000Biomass (kWh) 0 0 0 0 0 0 5,828,000 16,704,000Solar panels (kWh) NA NA NA NA NA NA 82,000 120,000Cogeneration electric (kWh) NA NA 19,614,000 20,734,000 14,668,000 27,221,000 25,234,000 17,764,000Cogeneration steam (kWh) 2,063,000 13,426,000 59,143,000 62,525,000 40,734,000 57,249,000 52,902,000 31,140,000Indirect energy usage (electricity) (kWh) 1,242,547,000 1,226,680,000 1,202,553,000 1,255,140,000 1,212,827,000 1,141,818,000 1,128,087,000 1,088,625,000International (kWh) 87,362,000 108,473,000 117,405,000 174,873,000 159,616,000 133,206,000 129,176,000 132,071,000North America (kWh) 1,155,185,000 1,118,207,000 1,085,148,000 1,080,267,000 1,053,211,000 1,008,612,000 998,911,000 956,554,000Energy usage, by region International (kWh) 182,228,000 248,443,000 276,249,000 247,902,000 245,321,000 232,405,000 243,227,000 215,436,000North America (kWh) 2,571,250,000 2,530,373,000 2,500,226,000 2,529,338,000 2,453,208,000 2,454,816,000 2,389,988,000 2,217,720,000GHG emissions rate (metric tons CO2e/metric ton of product) 0.223 0.222 0.224 0.214 0.210 0.202 0.203 0.200GHG emissions (Scopes 1 and 2) (metric tons CO2e) 1,066,000 1,065,000 1,057,000 1,058,000 1,032,000 1,004,000 992,000 935,000Scope 1 (metric tons CO2e) EN16 277,000 286,000 289,000 278,000 271,000 282,000 273,000 242,000Fuel oil (metric tons CO2e) 11,000 14,000 8,000 6,000 4,000 4,000 4,000 1,000Natural gas (metric tons CO2e) 265,000 271,000 280,000 271,000 264,000 274,000 268,000 240,000LP gas (metric tons CO2e) 1,000 1,000 1,000 1,000 3,000 4,000 1,000 1,000Scope 2 (metric tons CO2e) EN16 788,000 784,000 772,000 783,000 762,000 723,000 722,000 694,000GHG emissions, by region International (metric tons CO2e) 56,000 76,000 84,000 77,000 82,000 77,000 80,000 72,000North America (metric tons CO2e) 1,010,000 989,000 973,000 981,000 950,000 927,000 912,000 863,000Water usage rate (cubic meters/metric ton of product) NA 2.383 2.266 2.222 2.258 2.186 2.112 2.135Water withdrawal (cubic meters) EN8 NA 11,100,000 10,600,000 11,000,000 11,000,000 10,800,000 10,300,000 10,000,000Groundwater (cubic meters) NA NA NA NA NA NA 2,000,000 1,800,000Municipal (cubic meters) NA NA NA NA NA NA 8,300,000 8,200,000Solid waste generation rate (metric tons/metric ton of product) 0.057 0.052 0.047 0.051 0.040 0.037 0.037 0.034Solid waste (metric tons) EN22 266,000 241,000 221,000 239,000 197,000 183,000 178,000 159,000* All data are fiscal year. Energy, GHG emissions, water, and solid waste generation absolute and rate data are from wholly owned production facilities globally, excluding the recently acquired Yoki Alimentos S.A.** Some segments do not add up to total, due to rounding.*** Some data are restated compared to reporting in prior years to reflect improvements in data gathering and tracking methodology.APPENDIX
  • 79. General Mills Global Responsibility 77%69.2%30.8%15.4%0.0%7.7%0.0%100%MaleFemaleBlackAsianHispanicNative American/American IndianAge 50+(LA13) Governance Body Diversity (% of total)Standard Disclosures: Profile Disclosures Profile Disclosure and Description Reported Location/Comments1. Strategy and Analysis1.1 Statement from the most senior decision-maker of the organization. CEO Letter 2012 Annual Report1.2 Description of key impacts, risks, and opportunities. 2012 10K2. Organizational Profile2.1 Name of the organization. 2012 10K2.2 Primary brands, products, and/or services. Introduction 2012 10K2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. 2012 Annual Report2.4 Location of organization’s headquarters. 2012 10K2.5 Number of countries where the organization operates, and names of countries with either major operations or that are GeneralMills.com/Company/Countries specifically relevant to the sustainability issues covered in the report. 2.6 Nature of ownership and legal form. 2012 10K2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). GeneralMills.com/Company/Countries2.8 Scale of the reporting organization. 2012 Annual Report2.9 Significant changes during the reporting period regarding size, structure, or ownership. 2012 Annual Report2.10 Awards received in the reporting period. Workplace GeneralMills.com/Media/AwardsFullyKey to indicators: Partially Not covered
  • 80. General Mills Global Responsibility 78Standard Disclosures: Profile Disclosures (con’t) Profile Disclosure and Description Reported Location/Comments3. Report Parameters3.1 Reporting period for information provided. Introduction3.2 Date of most recent previous report (if any). April 20123.3 Reporting cycle Annual3.4 Contact point for questions regarding the report or its contents. Introduction3.5 Process for defining report content. CEO Letter/Introduction3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). Introduction3.7 State any specific limitations on the scope or boundary of the report. Introduction3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly Introduction affect comparability from period to period and/or between organizations. 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations Health applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, Environment or to substantially diverge from, the GRI Indicator Protocols. Workplace3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such Environment re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods). Appendix3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. None3.12 Table identifying the location of the Standard Disclosures in the report. Appendix3.13 Policy and current practice with regard to seeking external assurance for the report. Introduction4. Governance, Commitments, and Engagement4.1 Governance structure of the organization, including committees under the highest governance body responsible GeneralMills.com/Investors for specific tasks, such as setting strategy or organizational oversight. 4.2 Indicate whether the Chair of the highest governance body is also an executive officer. GeneralMills.com/Investors4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance GeneralMills.com/Investors body that are independent and/or non-executive members. 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. GeneralMills.com/Investors4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives 2012 Proxy Statement (including departure arrangements), and the organization’s performance (including social and environmental performance). 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. GeneralMills.com/InvestorsFullyKey to indicators: Partially Not covered
  • 81. General Mills Global Responsibility 79Standard Disclosures: Profile Disclosures (con’t) Profile Disclosure and Description Reported Location/Comments4. Governance, Commitments, and Engagement4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body GeneralMills.com/Investors and its committees, including any consideration of gender and other indicators of diversity. 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, GeneralMills.com/Company and social performance and the status of their implementation. GeneralMills.com/Responsibility4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, GeneralMills.com/Investors environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with Introduction internationally agreed standards, codes of conduct, and principles. 4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, GeneralMills.com/Investors environmental, and social performance. 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. GeneralMills.com/Responsibility4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the Introduction organization subscribes or endorses. Sourcing4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations. Introduction Health Environment Sourcing Community4.14 List of stakeholder groups engaged by the organization. Introduction Health Environment Sourcing Community4.15 Basis for identification and selection of stakeholders with whom to engage. Introduction Health Environment Sourcing Community4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. Introduction Health Environment Sourcing Community4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded Introduction to those key topics and concerns, including through its reporting. Health Environment Sourcing CommunityFullyKey to indicators: Partially Not covered
  • 82. General Mills Global Responsibility 80Standard Disclosures: Performance Indicators Profile Disclosure and Description Reported Location/CommentsEconomic Disclosures on Management Approach Economic performanceEC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations Community and other community investments, retained earnings, and payments to capital providers and governments. 2012 Annual Report 2012 Proxy StatementEC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change. Introduction Environment Sourcing Carbon Disclosure ProjectEC3 Coverage of the organization’s defined benefit plan obligations. 2012 10KEC4 Significant financial assistance received from government. market presence EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation. EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. Sourcing WorkplaceEC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. Indirect economic impactsEC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. SourcingEnvironment Disclosures on Management Approach materialsEN1 Materials used by weight or volume. EN2 Percentage of materials used that are recycled input materials. Environmentenergy EN3 Direct energy consumption by primary energy source. Environment Appendix - Environmental Data SummaryEN4 Indirect energy consumption by primary source. Environment Appendix - Environmental Data SummaryEN5 Energy saved due to conservation and efficiency improvements. EnvironmentFullyKey to indicators: Partially Not covered
  • 83. General Mills Global Responsibility 81Standard Disclosures: Performance Indicators (con’t) Profile Disclosure and Description Reported Location/CommentsEnvironmentEnergy EN6 Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these initiatives. water EN7 Initiatives to reduce indirect energy consumption and reductions achieved. EnvironmentEN8 Total water withdrawal by source. Environment Appendix - Environmental Data SummaryEN9 Water sources significantly affected by withdrawal of water. Environment SourcingEN10 Percentage and total volume of water recycled and reused. Environmentbiodiversity EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. EN13 Habitats protected or restored. EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. Emissions, effluents and wasteEN16 Total direct and indirect greenhouse gas emissions by weight. Environment Appendix - Environmental Data SummaryEN17 Other relevant indirect greenhouse gas emissions by weight. Carbon Disclosure ProjectEN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. EnvironmentEN19 Emissions of ozone-depleting substances by weight. Ozone-depleting substances (ODS) are most commonly used in small quantities for closed-loop refrigeration systems and occasional fumigation activities. ODS emissions are strictly regulated.FullyKey to indicators: Partially Not covered
  • 84. General Mills Global Responsibility 82Standard Disclosures: Performance Indicators (con’t) Profile Disclosure and Description Reported Location/CommentsEnvironmentEmissions, effluents and wasteEN20 NOx, SOx, and other significant air emissions by type and weight. Air emissions primarily include particulate matter and organic compounds from ingredient handling, cooking and drying, as well as emissions associated with fuel combustion. Our production facilities are governed by applicable regulations as well as our compliance management program.EN21 Total water discharge by quality and destination. We do not discharge untreated sanitary wastewater to land or surface waters at any of our locations. Wastewater discharges primarily consist of organic matter from ingredient handling, food production and cleaning processes. Our production facilities are governed by applicable regulations as well as our compliance management program.EN22 Total weight of waste by type and disposal method. EnvironmentEN23 Total number and volume of significant spills. There were no significant spills at our manufacturing locations during the reporting period.EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention The quantity of hazardous waste Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. produced and shipped is insignificant relative to the amount of solid waste generated at General Mills. Hazardous waste shipping and disposal is restricted by government regulations.EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the No water bodies are significantly reporting organization’s discharges of water and runoff. affected by company discharges. Our production facilities are governed by applicable regulations as well as our compliance management program.products and servicesEN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Environment SourcingEN27 Percentage of products sold and their packaging materials that are reclaimed by category. FullyKey to indicators: Partially Not covered
  • 85. General Mills Global Responsibility 83Standard Disclosures: Performance Indicators (con’t) Profile Disclosure and Description Reported Location/CommentsEnvironmentcomplianceEN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with General Mills received no significant environmental laws and regulations. fines or regulatory sanctions during the reporting period.transportEN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s Environment operations, and transporting members of the workforce. ovERALLEN30 Total environmental protection expenditures and investments by type. Social: Labor Practices and Decent Work Disclosures on Management Approach EmploymentLA1 Total workforce by employment type, employment contract, and region, broken down by gender. LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region. In the summer of 2012, General Mills announced its intention to cut 850 jobs worldwide, amounting to 2.4% of the global workforce. The reductions were part of a restructuring plan.LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. WorkplaceLA15 Return to work and retention rates after parental leave, by gender. Labor/management relationsLA4 Percentage of employees covered by collective bargaining agreements. Approximately 45% of U.S production employees are covered by CBAsLA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. General Mills maintains good notice practices as it relates to notice periods, whether they are required by law, by contract or outside of both.Occupational health and safetyLA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that Workplace help monitor and advise on occupational health and safety programs. LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender. WorkplaceLA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, Workplace or community members regarding serious diseases. FullyKey to indicators: Partially Not covered
  • 86. General Mills Global Responsibility 84Standard Disclosures: Performance Indicators (con’t) Profile Disclosure and Description Reported Location/CommentsSocial: Labor Practices and Decent WorkOccupational health and safetyLA9 Health and safety topics covered in formal agreements with trade unions. Workplacetraining and educationLA10 Average hours of training per year per employee by gender, and by employee category. WorkplaceLA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist Workplace them in managing career endings.LA12 Percentage of employees receiving regular performance and career development reviews, by gender. WorkplaceDiversity and equal opportunityLA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority Workplace group membership, and other indicators of diversity. Appendix GeneralMills.com/InvestorsEqual remuneration for women and menLA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation. Social: Human Rights Disclosures on Management Approach investment and procurement practicesHR1 Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening. HR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights Sourcing screening, and actions taken. GeneralMills.com/SourcingHR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.non-discriminationHR4 Total number of incidents of discrimination and actions taken. freedom of association and collective bargainingHR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be Sourcing violated or at significant risk, and actions taken to support these rights. child laborHR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute Sourcing to the effective abolition of child labor. FullyKey to indicators: Partially Not covered
  • 87. General Mills Global Responsibility 85Standard Disclosures: Performance Indicators (con’t) Profile Disclosure and Description Reported Location/CommentsSocial: Human Rights forced and compulsory laborHR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, Sourcing and measures to contribute to the elimination of all forms of forced or compulsory labor. security practicesHR8 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations. Indigenous rightsHR9 Total number of incidents of violations involving rights of indigenous people and actions taken. SourcingassessmentHR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments. remediationHR11 Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms. Social: Society Disclosures on Management Approach local communitiesSO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs. SourcingSO9 Operations with significant potential or actual negative impacts on local communities. SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities. corruptionSO2 Percentage and total number of business units analyzed for risks related to corruption. SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. 19% of our global workforce participated in anticorruption training during fiscal 2012. Anticorruption training is provided to employees with roles that may involve interactions with non-U.S. government officials.SO4 Actions taken in response to incidents of corruption. public policySO5 Public policy positions and participation in public policy development and lobbying. Introduction GeneralMills.com/ CivicInvolvement FullyKey to indicators: Partially Not covered
  • 88. General Mills Global Responsibility 86Standard Disclosures: Performance Indicators (con’t) Profile Disclosure and Description Reported Location/CommentsSocial: Society public policySO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. GeneralMills.com/ CivicInvolvementanti-competitive behaviorSO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. complianceSO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Social: Product Responsibility Disclosures on Management Approach customer health and safetyPR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, Health, Environment, Workplace and percentage of significant products and services categories subject to such procedures. PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes. Product and service labellingPR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information In fiscal 2012, there were no incidents and labeling, by type of outcomes. of non-compliance with regulations and voluntary codes concerning product and service information and labeling.PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. In fiscal 2012, our U.S. consumer satisfaction rate was 97%. Globally, we invest in measurement and monitor satisfaction on an on-going basis.marketing communicationsPR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, Health promotion, and sponsorship. PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes. customer privacyPR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. FullyKey to indicators: Partially Not covered
  • 89. General Mills Global Responsibility 87Standard Disclosures: Performance Indicators (con’t) Profile Disclosure and Description Reported Location/CommentsSocial: Product ResponsibilitycompliancePR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.Food Processing Sector SupplementFP1 Percentage of purchased volume from suppliers compliant with company’s sourcing policy. Sourcing General Mills adheres to a strict supplier code of conduct and utilizes independent third parties to assess supplier compliance with this code. GeneralMills.com/SourcingFP2 Percentage of purchased volume which is verified as being in accordance with credible, internationally recognized responsible production standards, broken down by standard. FP3 Percentage of working time lost due to industrial disputes, strikes and/or lock-outs, by country. FP4 Nature, scope and effectiveness of any programs and practices (in-kind contributions, volunteer initiatives, knowledge Health transfer, partnerships and product development) that promote access to healthy lifestyles; the prevention of chronic disease; Workplace access to healthy, nutritious and affordable food; and improved welfare for communities in need. CommunityFP5 Percentage of production volume manufactured in sites certified by an independent third party according to internationally Health recognized food safety management system standards. FP6 Percentage of total sales volume of consumer products, by product category, that are lowered in saturated fat, trans Health fats, sodium and added sugars. FP7 Percentage of total sales volume of consumer products, by product category, that contain increased nutritious ingredients Health like fiber, vitamins, minerals, phytochemicals or functional food additives. FP8 Policies and practices on communication to consumers about ingredients and nutritional information beyond legal requirements. Health WholeGrainNation.com GeneralMills.com/Benefits of Cereal GeneralMills.com/Benefits of Yogurt GeneralMills.com/Eating HealthyFP9 Percentage and total of animals raised and/or processed, by species and breed type. General Mills does not raise or process animals in its production operations. Meat that is used in our products is processed by our suppliers. For information on our approach to animal welfare, see our policy.FP10 Policies and practices, by species and breed type, related to physical alterations and the use of anaesthetic. General Mills does not physically alter animals or use anaesthetics. For information on our approach to animal welfare, see our policy.FullyKey to indicators: Partially Not covered
  • 90. General Mills Global Responsibility 88Standard Disclosures: Performance Indicators (con’t) Profile Disclosure and Description Reported Location/CommentsFood Processing Sector SupplementFP11 Percentage and total of animals raised and/or processed, by species and breed type, per housing type. General Mills does not raise or process animals. For information on our approach to animal welfare, see our policy.FP12 Policies and practices on antibiotic, anti-inflammatory, hormone, and/or growth promotion treatments, Sourcing by species and breed type. Animal welfare policyFP13 Total number of incidents of non-compliance with laws and regulations, and adherence with voluntary standards General Mills does not transport, handle related to transportation, handling, and slaughter practices for live terrestrial and aquatic animals. or slaughter live or aquatic animals.FullyKey to indicators: Partially Not covered