Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Usage
• Water Management
• Waste Management
• Sustainable Packaging
• Employee Health and Safety
• Food Safety
• Nutrition and Health
• Responsible Sourcing
• Diversity, Equity, and Inclusion (DEI)
• Employee Engagement
• Business Continuity

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 3.5% from 2019.
• 23 plants achieved >90% landfill diversion rate.
• Completed 121 energy projects resulting in 7,700,000 kWh of electrical savings and 45,000 MMBTU of natural gas savings.
• Completed 18 water use reduction projects resulting in 20 MM gallons of water use reductions.

Social Achievements

• Occupational injury rate of 1.26.
• Zero food safety violations.
• Implemented first annual employee engagement survey with 80% response rate.
• Launched Parents and Caregivers ERG.

Governance Achievements

• Established ESG governance structure.
• Added one female director to the Board.
• Added DEI key performance metric to executive compensation.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted program execution and metrics.
• Challenges in meeting 2020 targets due to pandemic and inability to travel.
• Water scarcity in some regions.
• Climate change impacts on ingredient sourcing and production.
• Growing consumer awareness and regulations on plastics and packaging.

Mitigation Strategies

• Established safety protocols for COVID-19.
• Bridged 2020 goals into 2025 ESG goals.
• Increased water stewardship protocols and reclamation efforts.
• Collaborated with external organizations to identify water reduction opportunities.
• Developed new strategies and programs for DEI.
• Developed a new responsible sourcing policy and supply chain assessment.
• Auditing packaging to identify sustainable options.

Supply Chain Management

Responsible Procurement

• Social Responsibility Policy
• Supplier Expectation Manual

Climate-Related Risks & Opportunities

Physical Risks

• Severe storms, floods, drought
• Sea-level rise, desertification
• Agriculture production fluctuations
• Disruption of operations
• Destruction of property

Transition Risks

• Policy and legal risk (carbon taxes, regulations)
• Technological risk
• Market risk (consumer demand, energy costs)
• Reputational risk

Opportunities

• Resource efficiency
• Renewable energy
• Sustainable products and services
• New markets
• Resilience

Reporting Standards

Frameworks Used: SASB, TCFD

Awards & Recognition

• Energy Star certification for four bakeries

Environmental Metrics

ESG Focus Areas

• environmental sustainability
• responsible sourcing
• diversity, equity and inclusion (DEI)

Social Achievements

• launched a Diversity, Equity, and Inclusion (DEI) Council

Climate Goals & Targets

Environmental Challenges

• Demand & Consumption: Unpredictable cadence of private label demand in the first half of 2021 due to government stimulus and branded company promotions, followed by stronger demand in the second half.
• Inflation: Unprecedented escalation in commodity inputs, freight rates, and labor wages.
• Labor & Supply Chain: Labor shortages and supply chain disruptions impacting supply availability and limiting order fulfillment.

Mitigation Strategies

• Close collaboration with customers to implement pricing actions and recover inflation.
• Steps to enhance recruitment and retention of staff, manage freight challenges, and improve service.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather

Transition Risks

• regulatory changes

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Sustainable packaging
• Responsible sourcing
• Diversity, equity, and inclusion

Environmental Achievements

• Reduction in scope 1 & 2 greenhouse gas emissions year-over-year
• Completion of a sustainable packaging assessment for all primary and secondary packaging elements

Social Achievements

• Distribution of an ESG survey to food suppliers to advance responsible sourcing efforts
• Creation of a diversity, equity, and inclusion council
• Initiatives at Delta facility in Canada to overcome language barriers and increase employee feedback
• Mental Health Awareness Month celebration at Hanover, PA facility
• Infant care packages launched at Cambridge, MD and Ogden, UT facilities
• Food donations from Manawa, WI facility to aid Ukraine
• Volunteer events organized in December 2022 to support local communities
• Women at TreeHouse employee resource group raised approximately $6,000 for Dress for Success

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Continued inflation and labor and supply chain disruption
• Supply chain disruptions impacting materials availability
• Agricultural input shortages impacting key ingredients
• Commodity inflation across raw materials, packaging, fuel, energy, and agricultural commodities
• Rising interest rates
• Strengthening U.S. Dollar impacting Canadian operations
• Shareholder activism

Mitigation Strategies

• Pricing actions to recover commodity and freight cost inflation
• Labor and supply initiatives (increased hourly labor rates, bonuses, retention programs, additional suppliers, transportation partners)
• Hedging activities (interest rate swaps, commodity contracts)
• Portfolio optimization (divestiture of Meal Preparation business)
• Debt reduction using proceeds from divestiture
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG survey distributed to food suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, natural disasters

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Completed a project to eliminate the use of single pass non-contact cooling water in the Pecatonica, Illinois facility, projected to reduce water consumption by approximately 20 million gallons per year.
• Installed new or improved wastewater treatment systems in several plants to ensure compliance with local, state, and federal requirements and ensure cleaner discharge (Cambridge, MD; Lancaster, PA; Princeton, KY; Tonawanda, NY).

Social Achievements

• Implemented a Responsible Sourcing Policy with specific requirements around environmental sustainability, priority ingredients, deforestation, human rights, and food safety and quality.

Governance Achievements

• ESG and climate change strategy oversight provided by the Nominating and Corporate Governance Committee of the Board of Directors.
• ESG Steering Committee, chaired by the Chairman, CEO, and President, reports to the Board and oversees ESG efforts.

Climate Goals & Targets

Environmental Challenges

• Escalating threat of climate change impacting ingredient sourcing, production, and distribution.
• Acute physical risks from severe weather events disrupting operations.
• Chronic physical risks from long-term climate changes affecting agricultural production.
• Transition risks from policy and legal changes, market shifts, and reputational concerns.
• Increased energy and water costs.
• Consumer demand for responsibly produced food products.

Mitigation Strategies

• Setting 2030 ESG goals to reduce GHG emissions, water usage, and waste; increasing sustainable packaging.
• Implementing a Responsible Sourcing Policy and collaborating with certified organizations (RSPO, Rainforest Alliance, Fair Trade USA).
• Investing in energy and water efficiency, and waste reduction initiatives (approximately $10 million in 2023).
• Proactive reporting on GHG emissions and climate change risks.
• Engaging with customers to understand their climate objectives.
• Executing pricing actions to recover escalating inflation.
• Evaluating Enterprise Risk Management (ERM) program to include climate-related risk mitigation planning.

Supply Chain Management

Responsible Procurement

• Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Severe storms, floods, drought
• Sea-level rise, desertification
• Agriculture production and quality fluctuations
• Increased average temperature and toxic algae blooms
• Increased frequency and intensity of storms
• Water scarcity

Transition Risks

• Policy and legal changes (carbon taxes, regulations)
• Market demand and supply shifts
• Increased disclosure and regulation
• Shareholder activism

Opportunities

• Resource efficiency (energy and water savings)
• Transition to low-emission energy sources
• Meeting consumer demand for responsibly produced food products
• Climate resilience

Reporting Standards

Frameworks Used: TCFD, SASB