Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Named one of "The 100 Best Corporate Citizens" by Corporate Responsibility Magazine for the 11th year in a row
• 54th consecutive year of dividend increase; 11th consecutive year of double-digit dividend increase

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Higher protein prices and further volatility related to the impact from African swine fever and global trade uncertainty

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

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

• The 100 Best Corporate Citizens

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Animal Welfare
• Community

Environmental Achievements

• Reduced energy use by more than 98,000 MMBtu (surpassed target by 32%).
• Reduced water use by 119 million gallons (exceeded goal by 106%).
• Reduced solid waste sent to landfills by 38 tons.
• Reduced product packaging by more than 553,000 pounds (surpassed goal by nearly 7%).
• Reduced GHG emissions by over 5,700 metric tons (83% of goal).

Social Achievements

• Launched Inspired Pathways program providing free two-year college education for dependent children of employees.
• Donated more than $8.2 million in cash and products.
• Maintained a Safety-First culture during the COVID-19 pandemic, including paid leave and bonuses.
• Opened a state-of-the-art health center for employees and their families.
• 52% of workforce represented by ethnic minorities.

Governance Achievements

• Hormel Foods Board of Directors consisted of 13 members, 12 independent, 4 women, and 6 persons of color.
• 54th consecutive year of increased annual dividend.
• Average dividend growth rate of 16% per year since 2010.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted logistics and production volume.
• Challenges in recycling and alternative disposal markets affected solid waste reduction.
• Higher than average aflatoxin levels in the 2019 peanut crop led to a product recall.

Mitigation Strategies

• Implemented KEEP COVID OUT! campaign with enhanced sanitation, paid leave, and bonuses.
• Implemented new logistics model to reduce miles traveled.
• FDA Class III recall of SKIPPY® peanut butter due to elevated aflatoxin.

Supply Chain Management

Supplier Audits: More than 1,900 audits in 2020

Responsible Procurement

• Supplier Code of Conduct
• Sustainable palm oil sourcing
• Third-party food safety audits of ingredient suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: Internal audit department

UN Sustainable Development Goals

• Not disclosed

Many 2020 goals supported the UN Sustainable Development Goals.

Sustainable Products & Innovation

• Applegate® products (raised without antibiotics)
• Hormel® Natural Choice® meats (100% natural)
• Hormel® FUSE™ burgers (100% natural)

Awards & Recognition

• 3BL Media's 100 Best Corporate Citizens
• Newsweek's America's Most Responsible Companies
• Selling Power's 50 Best Companies to Sell For
• Military Times' Best for Vets Employer

Environmental Metrics

ESG Focus Areas

• Products
• Supply Chain
• Environment
• People
• Community

Environmental Achievements

• Reduced GHG emissions from domestic manufacturing facilities by over 21,000 metric tons
• Reduced energy use by nearly 98,000 MMBtu
• Reduced water use by over 42 million gallons
• Reduced solid waste sent to landfills by more than 500 tons
• Packaging sustainability initiatives resulted in more than 727,000 pounds in savings

Social Achievements

• Increased the number of women in salaried roles by 2.8%
• Increased the number of underrepresented racial and ethnic minorities in salaried roles by 9.1%
• Provided support to over 150 students through the Inspired Pathways program
• Invested more than 713,000 total hours on training (approximately 38 hours per team member)
• Reduced Total Case Incident Rate to 2.3 and Days Away, Restricted or Transfer rate to 1.4

Governance Achievements

• Hormel Foods Board of Directors consisted of 12 members, 11 of whom were independent. Four were women and five were persons of color.
• Spent over $595,000 on lobbying in calendar year 2021
• No incidents of noncompliance with regulations or voluntary codes concerning marketing communications

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacts on logistics and inventories
• Reducing organic waste discharge from manufacturing facilities
• Working toward zero food waste

Mitigation Strategies

• Implemented projects to reduce GHG emissions, energy use, water use, and solid waste
• Assessing several regenerative agriculture projects
• Initial assessment of food waste in the supply chain
• Published tips for consumers to reduce food waste at home
• Phased approach to returning office workers
• Enhanced sanitation procedures and safety measures

Supply Chain Management

Supplier Audits: More than 2,300 audits conducted in 2021

Responsible Procurement

• Supplier Code of Conduct
• Sustainable palm oil sourcing (77% traceable to plantation level by end of 2021)
• Increased purchasing spend with small and diverse businesses ($1.3 billion in calendar year 2021)

Climate-Related Risks & Opportunities

Opportunities

• Renewable energy projects
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: Internal audit department review; not externally assured

UN Sustainable Development Goals

• 2
• 3
• 6
• 7
• 8
• 10
• 12
• 13
• 16

Goals and initiatives support various UN Sustainable Development Goals

Sustainable Products & Innovation

• Applegate Naturals® Do Good Dog™ hot dog made with beef raised on verified regenerative U.S. grasslands
• Raised-without-antibiotics products
• Plant-based products

Awards & Recognition

• America’s Most Responsible Companies by Newsweek magazine
• One of the 50 Best Companies to Sell For by Selling Power
• Best for Vets Employer by Military Times
• One of the World’s Top Female-Friendly Companies by Forbes
• Several Impact Awards by Progressive Grocer