Climate Change Data

Environmental Metrics

Environmental Achievements

• continue to drive processing innovations aimed at reducing waste and water usage

Governance Achievements

• adopted a code of conduct that applies to all of our employees, as well as a code of ethics for senior corporate financial officers

Climate Goals & Targets

Environmental Challenges

• Increased competition may result in reduced sales or profits
• Increased industry capacity may result in reduced sales or profits
• Our business, financial condition, and results of operations could be adversely affected by the political and economic conditions of the countries in which we conduct business and other factors related to our international operations, including foreign currency risks and trade barriers
• Disruption of our access to export mechanisms could have an adverse impact on our business, financial condition, and results of operations
• Our substantial debt may limit cash flow available to invest in the ongoing needs of our business and could prevent us from fulfilling our debt obligations
• Our business relies on a potato crop that has a concentrated growing region
• Our business is affected by potato crop performance
• Increases in commodity costs may have a negative impact on profits
• If we do not achieve the appropriate cost structure in the highly competitive value-added frozen potato product category, our profitability could decrease
• Changes in our relationships with our growers could adversely affect us
• Changes in our relationships with significant customers could adversely affect us
• The sophistication and buying power of some of our customers could have a negative impact on profits
• We must identify changing consumer preferences and consumption trends and develop and offer food products to our customers that help meet those preferences and trends
• A portion of our business is, and several of our growth strategies are, conducted through joint ventures that do not operate solely for our benefit
• If we are unable to complete potential acquisitions that strategically fit our business objectives, integrate acquired businesses, or execute on large capital projects, our financial results could be materially and adversely affected
• New regulations imposed by the FDA or EFSA around acrylamide formation in french fried potato products could adversely affect us
• If we fail to comply with the many laws and regulations applicable to our business, we may face lawsuits or incur significant fines and penalties
• Litigation could expose us to significant costs and adversely affect our business, financial condition, and results of operations
• We may be subject to product liability claims and product recalls, which could negatively impact our relationships with customers and harm our business
• Damage to our reputation as a trusted partner to customers and good corporate citizen could have a material adverse effect on our business, financial condition, and results of operations
• Our results could be adversely impacted as a result of increased pension, labor and people-related expenses
• We are significantly dependent on information technology, and we may be unable to protect our information systems against service interruption, misappropriation of data, or breaches of security
• There are inherent limitations on the effectiveness of our controls
• If we are unable to attract and retain key personnel, our business could be materially and adversely affected
• Climate change, or legal, regulatory, or market measures to address climate change, may negatively affect our business and operations
• Deterioration of general economic conditions could harm our business and results of operations
• Impairment in the carrying value of goodwill or other intangibles could result in the incurrence of impairment charges and negatively impact our net worth
• We have a limited operating history as an independent public company, and our historical financial information is not necessarily indicative of our future financial condition, results of operations, or cash flows nor do they reflect what our financial condition, results of operations or cash flows would have been as an independent public company during the periods presented
• We are subject to significant restrictions under a tax matters agreement

Mitigation Strategies

• seek to mitigate higher input costs through long-term relationships, contract strategies, and hedging activities where an active market for an input exists, as well as through our productivity and pricing initiatives
• continue to implement profit-enhancing initiatives that improve the efficiency of our supply chain and general and administrative functions
• We have deep experience in agronomy and actively work to monitor the potato crop
• We continue to implement initiatives to counteract these pressures, including efficiency programs and investments in innovation and quality
• We continue to reformulate our products, introduce new products and create product extensions without a loss of the taste, texture, and appearance that consumers demand in value-added potato products
• We believe that cash-on-hand combined with cash flows from operations will be sufficient to fund these commitments

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Food Safety & Quality
• Ethics & Integrity
• Sustainable Agriculture
• Occupational Health & Safety
• Environmental Compliance
• Diversity, Equity, & Inclusion

Environmental Achievements

• 20,500 tons waste reduced
• 878M gallons of water reused
• Launched award-winning bio-based packaging
• 100% RSPO Mass Balance certified palm oil

Social Achievements

• 14.5% year-over-year improvement of total incident rate
• $250,000 provided to community programs
• $77,000 donated by employees to eligible charities (matched by Lamb Weston Foundation)
• 117 paid employee volunteer hours through our Volunteer Time Off policy

Governance Achievements

• Embedded ESG criteria into all innovation projects to evaluate the sustainability impacts of our manufacturing processes and products by the end of 2022.
• Implemented Quality Improvement Plans in Australia and Argentina

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on supply chain and operational efficiencies
• Extreme heat impacting potato crop
• Labor shortages
• Supply chain issues

Mitigation Strategies

• Elevated the importance of employee assistance programs
• Introduced readily accessible incident reporting forms
• Cross-functional team to optimize potato crop usage
• Developed new batters using Upcycle Certified starch
• Implemented a new EHS management system

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• 100% certified sustainable palm oil and secondary packaging
• 6% year-over-year increase of plant-based primary packaging materials

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Processed Foods Standard, TCFD

Certifications: ISO 45001, ISO 14001

Third-party Assurance: Apex

Sustainable Products & Innovation

• Bio-based packaging
• Products using Upcycled Certified pea starch

Awards & Recognition

• FPA Gold and Silver Awards for Bio-Based Packaging

Environmental Metrics

ESG Focus Areas

• Food Safety & Quality
• Ethics & Integrity
• Sustainable Agriculture
• Occupational Health & Safety
• Environmental Compliance
• Diversity, Equity, & Inclusion (DEI)

Environmental Achievements

• 1% decrease in Scope 1 and 2 emissions intensity from baseline year
• Delivered material reduction results through specification review and modification of two key packaging components
• Developed and piloted a new bio-based, compostable package
• 496M gallons of water reused
• 90% of waste diverted from landfill

Social Achievements

• 15% year-over-year improvement of total incident rate
• 0 food safety incidents
• Established and training team members on leadership capabilities
• $680,000 donated by Lamb Weston Foundation
• 382 paid team member volunteer hours

Governance Achievements

• Strengthened sustainable packaging goals
• Maintained commitment to ethics and compliance with legal standards
• Made progress against global Ag strategy

Climate Goals & Targets

Environmental Challenges

• Extreme heat increased the need for water, nitrogen fertilizer, and Active Ingredient (AI) pesticides
• Staffing shortages impacted performance to 2030 Sustainability Goals
• Water use intensity increased while GHG emissions intensity slightly decreased

Mitigation Strategies

• Investing in operational efficiencies (lighting, refrigeration upgrades, fryer heat recovery)
• Purchasing renewable energy certificates
• Investing in biogas technology
• Installing localized flow meters, flow restrictors, orifice plates, flow control valves, and automated water controls
• Capturing and reusing overflow water
• Implementing a new global quality management system

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Water availability

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 45001, ISO 14001

Third-party Assurance: Apex Independent Limited

Sustainable Products & Innovation

• Bio-based, compostable packaging

Environmental Metrics

ESG Focus Areas

• Sustainable and Regenerative Agriculture
• Climate Change
• Waste Reduction
• Food Safety and Quality
• Occupational Health and Safety
• Workplace Culture and Employee Engagement
• Diversity, Equity, and Inclusion
• Community Engagement
• Ethics and Integrity
• Responsible Sourcing and Traceability
• Sustainable Innovation and Technology
• Governance

Environmental Achievements

• 447M+ gallons of process water reused
• >95% of total waste generated diverted, including food, from landfill
• 6.5% increase in renewable energy (biogas and electricity) consumed year-over-year
• 16% year-over-year reduction in injury rates

Social Achievements

• $946K+ in Lamb Weston Foundation grants
• 72% team members participated in the first global employee pulse survey
• First published Human Rights policy

Governance Achievements

• Strong corporate governance with an independent chairman and 10 independent directors on the 11-member board.
• ESG Governance overseen by the Nominating and Corporate Governance Committee.
• Updated Code of Conduct to explicitly prohibit forced labor.

Climate Goals & Targets

Environmental Challenges

• Climate instability and change affecting potato crop yield and quality.
• Water scarcity in some regions.
• Food waste throughout the supply chain.
• Tight labor markets in some regions.

Mitigation Strategies

• Investing in soil health and regenerative agriculture practices.
• Implementing water-saving irrigation technologies and practices.
• Collaborating with others to reduce food waste.
• Enhanced recruiting strategies, including open days and social media campaigns.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis Sustainability assessments

Climate-Related Risks & Opportunities

Physical Risks

• Weather conditions
• Water availability

Transition Risks

• Climate-related regulations
• Changes in consumer demand

Opportunities

• Development of energy-efficient products and processes
• Renewable energy adoption

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: BRC, ISO 45001, ISO 14001

Third-party Assurance: Independent Limited Assurance Statement, excluding LW EMEA data

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 2 (Zero Hunger)