Climate Change Data

Environmental Metrics

ESG Focus Areas

• Smart & Sustainable Farming
• Resource-Efficient Operations
• Good Food
• Thriving Communities

Environmental Achievements

• 6% decrease in Scope 1 & 2 absolute CO2 emissions from 2017 baseline
• Use of renewable electricity up to 4% of total electricity, from 1% in 2019
• Move out of coal in China, reducing CO2 emissions by approximately 21,000 tonnes per year
• 4% improvement in water-use efficiency in seven priority plants in water-stressed regions from 2017 baseline
• 1.4% waste to landfill, down from 1.5% in 2019
• 97% of packaging technically recyclable
• 59% recycled content for global paper materials

Social Achievements

• Achieved a Total Recordable Incident Rate (TRIR) of 0.89, down from 1.04 in 2019
• Women represented 25% of McCain's global leadership team in 2020
• Donated the equivalent of over 53 million meals globally
• Launched the ‘McCain Potato Farmer Pledge’ with a GBP £25 million investment over five years to support farmers in Great Britain

Governance Achievements

• Completed a Code of Conduct recertification for all employees with a 96% completion rate

Climate Goals & Targets

Environmental Challenges

• Significant drop in demand for products due to restaurant closures during the COVID-19 pandemic
• Production pauses at several factories due to the pandemic
• Surplus of potatoes due to decreased demand
• Acts of racism and discrimination
• Two worst consecutive potato crops in the last 40 years in Great Britain

Mitigation Strategies

• Rapid deployment of COVID-19 safety protocols
• Paid temporary leaves of absence for affected employees
• Reallocating potatoes normally earmarked for foodservice to retail product lines
• Donating potatoes to food banks
• Launching the ‘McCain Potato Farmer Pledge’ to support farmers in Great Britain
• Reviewing and adapting Diversity & Inclusion Strategy

Supply Chain Management

Responsible Procurement

• McCain Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Environmental Metrics

ESG Focus Areas

• Smart & Sustainable Farming
• Resource-Efficient Operations
• Good Food
• Thriving Communities
• Strong Foundations (Safety, Inclusion, Ethics, Security)

Environmental Achievements

• Reduced absolute Scope 1 and 2 CO2 emissions by 6% compared to 2017 baseline.
• Increased renewable electricity use to 18.5% of total electricity usage.
• Improved water-use efficiency by 11% in water-stressed regions.
• Achieved a 17% improvement in water-use efficiency in seven priority plants compared to 2017.
• Reduced CO2 emissions intensity by 17% (Scope 1 and 2).
• Reduced food waste intensity by 12% compared to 2020.
• 98% of paper packaging and 90% of plastic packaging designed for recycling.

Social Achievements

• Donated over 10.9 million meals.
• Completed 6,432 hours of employee volunteering.
• Launched 14 new community projects.
• Reached 2,921 new beneficiaries.
• Increased women in global leadership roles to 33% from 19% since 2016.
• Maintained 100% Global Food Safety Initiative (GFSI) certification at all McCain-owned facilities and achieved 95% for tier 1 ingredient suppliers.

Governance Achievements

• Implemented the McCain Regenerative Agriculture Framework.
• Established new regenerative financing partnerships.
• Launched the Global Good Food Steering Committee.
• Annual employee Code of Conduct recertification rate of 94%.

Climate Goals & Targets

Environmental Challenges

• Difficulty in collecting reliable emissions data from suppliers for Scope 3 emissions.
• Global supply chain disruptions impacting progress on palm oil alternatives.
• Challenges in reducing sodium in products.
• A fatality at one of our storage facilities.

Mitigation Strategies

• Working on solutions to improve and standardize Scope 3 emissions data collection by becoming a CDP Supply Chain member.
• Continuing to purchase 100% of palm oil from RSPO-certified suppliers.
• Re-evaluating global Good Food strategy to prioritize products highest in sodium and most frequently consumed.
• Conducting an in-depth investigation into the fatality and developing a plan focused on improving conditions and behaviours, including bringing in external support.

Supply Chain Management

Supplier Audits: 95% of tier 1 ingredient suppliers GFSI certified in 2022

Responsible Procurement

• Supplier Code of Conduct
• Global Ingredients policy
• Responsible sourcing program (under development)

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Extreme temperatures
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Difficulty in collecting reliable emissions data from suppliers

Opportunities

• Development of energy-efficient products
• Regenerative agriculture

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14064

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land
• Goal 17: Partnerships for the Goals

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Plant-based products through partnerships with Strong Roots, GoodLeaf, and The Simple Root
• McCain 9-Minute Breakfast Patties
• McCain Quick Crinkle Fries
• McCain Crunchy Petals
• McCain Oat Hash Browns

Awards & Recognition

• Project Shakti won the Women’s Empowerment Category at the 7th CSR Impact Awards

Environmental Metrics

ESG Focus Areas

• Smart & Sustainable Farming
• Resource-Efficient Operations
• Good Food
• Thriving Communities

Environmental Achievements

• 9.8% reduction of absolute CO2 emissions (Scope 1 & 2)
• 21.2% of total electrical energy consumption from renewable sources
• 16.3% improvement in water-use efficiency in priority plants
• Reduced waste to landfill to 0.6% of total waste
• 9.5% reduction in food waste intensity in operations
• 28% of global acreage ‘Engaged’ and 51% ‘Onboarded’ on our Regenerative Agriculture Framework

Social Achievements

• 17,384 hours of employee volunteering completed
• 11.9 million meals donated
• 2,716 new beneficiaries of development programs/partnerships reached
• 3 new community projects launched to improve the lives of vulnerable farmers and families

Governance Achievements

• Launched new Global Clean Ingredient Policy and Global Nutrition Policy
• Increased the proportion of tier one ingredient supplier facilities that are Global Food Safety Initiative certified to 96%
• Reviewed our Employee Code of Conduct and Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• 6% increase in the emissions intensity associated with our potato farming, storage and freight (Scope 3) due to fluctuating weather patterns and reduced yields
• Scope 3 reduction remains a challenge
• South Africa remains a key challenge to achieving our commitment to ceasing use of coal by 2025

Mitigation Strategies

• Working closely with high-emissions regions to implement tailored emission reduction initiatives, along with implementation of our regenerative agriculture ambition
• Defining our roadmap to reduce Scope 3 emissions, including gathering information on our non-potato-related agriculture emissions
• Updating our Scope 3 science-based target and accounting in line with the Science Based Target Initiative’s new Forest, Land and Agriculture (“FLAG”) requirements

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Extreme Temperatures
• Flooding

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14064

Third-party Assurance: British Standards Institution (“BSI”)

Sustainable Products & Innovation

• Regen Fries

Awards & Recognition

• Second Harvest’s Values Award