Global Responsibility 2013Health Environment Sourcing Workplace Community
Table of Contents	76	 APPENDIX	 76	 Environmental Data Summary	 77	 GRI Index	 2	 INTRODUCTION	10 	 HEALTH	 11	 Overview	 ...
General Mills Global Responsibility 01Acknowledging and addressing the inter-relationship of economic, environmentaland so...
General Mills Global Responsibility 02INTRODUCTIONOur valuesWe do theright thing,all the time.We innovatein every aspectof...
General Mills Global Responsibility 03Highlights650+General Mills productshave been nutritionallyimproved since weimplemen...
General Mills Global Responsibility 04We produce and market morethan 100 consumer brands inmore than 100 countrieson six c...
General Mills Global Responsibility 05Climate change – Climatechange poses serious risks forour planet. Governments, compa...
General Mills Global Responsibility 06Grow – In order to feed the9 billion people expected by2050, the world will need to ...
General Mills Global Responsibility 07The General Mills value chain includesour own operations as well as those ofour part...
General Mills Global Responsibility 08We provide people withconvenient, nutritious foodthat – when combined withexercise a...
General Mills Global Responsibility 09Ethics and complianceOur Code of Conduct for employeesreflects our value, “Do the ri...
Our strategiesProvidenutritiousfoodsEducateconsumersAdvanceglobal foodsafetyHEALTHAt General Mills, our mission isNourishi...
Measuring progress: our Health Metric – General Mills is committed to improving the health profile of our products while m...
Health Environment Sourcing Workplace CommunityWe also enhance and accelerate ourinnovation efforts by teaming up withworl...
Health Environment Sourcing Workplace CommunityDelivering nutrition to millions of consumersProvide nutritious food11AGene...
Health Environment Sourcing Workplace CommunityCenters for Disease Control and Prevention (CDC). National Center for Healt...
Health Environment Sourcing Workplace CommunityImproving product health profilesAround the world, we are making progressto...
Health Environment Sourcing Workplace Communitymeaningful increases in nutrients targetedfor increased consumption or decr...
Health Environment Sourcing Workplace CommunityOur Cereal Partners Worldwide (CPW) jointventure with Nestlé makes and mark...
Health Environment Sourcing Workplace CommunityReducing sodiumGeneral Mills has a broad commitmentto reducing sodium in ou...
Health Environment Sourcing Workplace CommunityReducing trans fatIn recent years, General Mills hassuccessfully reformulat...
Health Environment Sourcing Workplace CommunityModifying school mealsGeneral Mills also is responding tochanging U.S. Depa...
Health Environment Sourcing Workplace CommunityEducate consumers2Promoting better healthGeneral Mills believes that in add...
Health Environment Sourcing Workplace CommunityCombining nutritionand fitnessGeneral Mills supports online resourcesthat h...
Health Environment Sourcing Workplace CommunitySupporting responsible marketingGeneral Mills’ marketing guidelinesundersco...
Health Environment Sourcing Workplace CommunityAdvance global food safety3Adhering to strict food safety processesAs a con...
Health Environment Sourcing Workplace CommunityPartnering to increase food safetyIn recent years, we have dramaticallyincr...
ENVIRONMENTOur goal is to continually reduceour environmental footprint. We focusour efforts on areas where we can havethe...
General Mills Global Responsibility 27OverviewOur Environmental Sustainability Metrics – We continue to work toward our fi...
Our approach: measure  reduceWe track our environmental footprint, report progress and work to reduce our global impactWe ...
Training, monitoringand follow-upOn a quarterly basis, our Global Safetyand Environment team reviews thecompany’s complian...
Reduce resource usage in our operations1	 Reducing energy usageAcross our businesses worldwide,we are making improvementst...
shutting down dryers in our productionarea, eliminating compressed air coolingin the packaging process, turning offlights ...
Reducing GHG emissions and addressing climate changeClimate change is a seriousissue with broad implications foragricultur...
Reducing water usageIn food production, water isused as an ingredient, to coolor heat various production operations,and to...
Reverse osmosissystem saveswater in MexicoAt our facility in Irapuato, Mexico, weinstalled a reverse osmosis (RO) waterrec...
Reducing solid waste generationWe continue to reduce our solidwaste stream by improvingefficiencies in our production oper...
Targeting food wasteOne-third of all the calories of foodproduced in the world every year arewasted – equaling 1.3 billion...
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
2013 General Mills Global Responsibility Report
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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 community engagement.

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2013 General Mills Global Responsibility Report

  1. 1. Global Responsibility 2013Health Environment Sourcing Workplace Community
  2. 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. 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. 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. 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 RDspending 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. 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. 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. 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. 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. 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. 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. 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. 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 (RD) to helpimprove the health profile of our products.Since 2004, we’ve increased RD 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 RD 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 RD spendingon health and wellnessby 86 percent.General Mills Global Responsibility 11
  14. 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 RD 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. 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. 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. 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. 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. 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. 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/100g0.300.250.200.150.100.050.00Pack2009Pack2008Pack2010Pack2011Pack2012Pack2013Pack2014Standard (UK, FR, MENA, BENIT, RU, ASIA)Low salt (SP, NO)No salt (UK, FR, SP, MENA)Sodium reduction – cornGeneral Mills Global Responsibility 18
  21. 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. 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. 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. 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%Fat0,3g1%SaturatesTrace1%Sodium0,2g8%Each portion containsof an adult’s Guideline Daily AmountCalories112Per portionGeneral Mills Global Responsibility 22
  25. 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. 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. 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. 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. 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. 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. 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. 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 IndirectBillionkWh3.02.52.01.51.00.50.0700600500400300200100020062005 2007 2008 2009 2010 2011 2012 2015GOALkWh/metrictonofproduct8%General Mills Global Responsibility 30Health Environment Sourcing Workplace Community
  33. 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. 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 2MetrictonsCO2e1,200,0001,000,000800,000600,000400,000200,00000.250.200.150.100.05020062005 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. 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 - 2012Millioncubicmeters1210864203.02.52.01.51.00.502006 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. 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. 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 - 2012Metrictons300,000250,000200,000150,000100,00050,00000.060.050.040.030.020.01020062005 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. 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

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