PUK Sustainability Report by TulipIntra

2022

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Contents

Contents 03

Welcome

Our Business

Sustainability

Journey to Net Zero

Sustainable Farming

Sustainable Food Production

Sustainable Products

Sustainable Packaging

Sustainable People & Community

Methodology

05 Our Business At Pilgrim’s UK, our sustainability effort is guided by our vision: to be the best and most respected company in our industry, creating the opportunity for a better future for our team members. To do that, we need to think and act sustainably.

Journey to Net Zero

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

We work with retailers, food service outlets and business-tobusiness customers across the UK, helping them to bring high-quality innovative products to supermarket shelves and household menus that excite and inspire.

17 Sustainability

Central to the Pilgrim’s UK 2030 strategy is our pledge to become net zero across our own agricultural and manufacturing operations by 2030 and our entire supply chain by 2035.

Welcome

Executive Summary | Introduction from Pilgrim’s UK’s Head of Sustainability

Building a Better Future for Everyone For Pilgrim’s UK, sustainability isn’t just a business buzzword, it’s in our DNA.

But being a sustainable business isn’t just about reducing greenhouse gas emissions.

Our heritage goes back generations and we haven’t got this far without considering the environmental, economic and social impact of everything we do.

It means treating people fairly and providing opportunities so that they can achieve their ambitions and build sustainable lives for their families and communities.

It will define our future too; we’re laser-focused on delivering our Pilgrim’s UK 2030 sustainability strategy, which sets out our roadmap to get to net zero in our own operations by 2030, and across our entire supply chain by 2035 – these are among the most ambitious targets in our industry. Our strategy is built on five core pillars, which we’ll delve into in this report: sustainable farming, sustainable food production, sustainable packaging, sustainable people and community, and sustainable products. We’re not interested in greenwashing; we’re doing this because it’s the right thing to do – for our customers, our producers and for the planet. Food production is responsible for a third of all the world’s greenhouse gas emissions, which is a massive challenge for the global industry. We’ve made good progress at Pilgrim’s UK, but we’ll never stop working to make sure our operations are as sustainable as they possibly can be.

It also means caring for our animals, so they live contented, healthy lives and produce the highest quality food. And it means doing all this as a profitable business so we can reward our people, reinvest in our organisation and deliver a return to our owners. We’re a British business, but we’re also part of a strong and stable global company with operations around the world. We’re ambitious, well-invested and committed to championing UK farming. This is how we will deliver on our goal to be the most sustainable producer and supplier in the industry. This report will take you through our most recent success stories, and give you a glimpse into our plans for the year ahead and beyond. Sustainability is the existential challenge of our times. That’s why we’ll never stop working to build a better future for everyone.

After all, as Britain’s number one higher welfare pork producer and a leading processor of pork and lamb products, as well as being part of the world’s largest food company, we have an important part to play in reducing our industry’s impact as the UK transitions to net zero. Ivan Siqueira President, Pilgrim’s UK Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Contents

Welcome

Executive Summary | Introduction from Pilgrim’s UK’s Head of Sustainability

Being a Leader on this Journey At Pilgrim’s UK, our ethos is grounded in delivering high-quality food produced sustainably. Our long-standing partnerships with the UK’s top retailer and food service businesses are a testament to their faith in us; we proudly stamp their names on our products, and that’s a responsibility we don’t take lightly. Our commitment isn’t just about ticking the boxes on Environmental, Social, and Governance principles. We aim high, going beyond just meeting basic standards. We care for our animals and support our communities. This isn’t new for Pilgrim’s UK; our journey and our 2030 strategy show our long-standing commitment to sustainability.

respected company in our industry, creating the opportunity of a better future for our team members.” Every step we take is driven by this vision. Yet, we recognise that sustainability is a shared journey across our sector and our global society. We are grateful to work within supply chains where other stakeholders are equally as committed to a better, more sustainable future. This report is our first step in sharing Pilgrim’s UK’s sustainability story and progress. While this report has been influenced by global sustainability reporting standards and guidelines, we acknowledge that this is the first step on our reporting journey. We are always looking to improve while aligning with global reporting standards.

Our unparalleled expertise is not just about maintaining standards; it’s about revolutionising the food supply chain. We’re continuing to innovate to ensure that we find new ways to make good food affordable and sustainable for everyone. Though our roots are in the UK, our influence is global. As a subsidiary of the US-based Pilgrim’s Pride Corporation, we’re part of a larger narrative, consistently pushing boundaries and setting benchmarks. In line with Pilgrim’s UK’s vision, we aspire to “become the best and most

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Matt Dight Head of Sustainability

Contents

Business Model > Financial Performance > Ownership & Governance > Our Vision, Method and Values > Being the Best > Supply Chain >

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Our Business

Contents

Business Model

Pilgrim’s UK is one of the largest producers of higher welfare pork globally, as well as a supplier of high-quality, high welfare lamb. Headquartered in central England, we support over 1,000 British farmers and employ more than 4,500 people at 11 manufacturing sites across our fully-integrated business. We process around 2.4 million pigs and 1 million lambs every year, producing around a quarter of all UK pork products and 10% of UK retail lamb. We are proud to be a trusted partner to the UK’s leading food retailers and food service outlets, providing both the food that people know and love, as well as creating innovative new products to inspire and delight consumers.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Our Business

Contents

Pilgrim’s UK’s History The company’s roots date back to the late 1800s, although the foundations for its present day structure were set in the 2000s with the acquisition and consolidation of some of the UK’s best and most respected family-founded food businesses.

2002

2003

2007

2011

2014

2017

2019

2020

2021

2022

Creation of:

Acquisition of:

Acquired by:

Rebrand of:

Acquisition of:

Launch of:

Tulip Ltd

Hygrade Foods

George Adams

Parkam Foods

Castellano’s Charcuterie

Easey Holding

Pilgrim’s Pride Corporation

Tulip Ltd to Pilgrim’s UK

Randall Parker Foods

Pilgrim’s UK Lamb

Roach Foods Dalehead Foods Flagship Fresh Meats BQP

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Freshway Chilled Foods Trophy Foods Transfood

Our Business

Pilgrim’s UK at a glance Pilgrim’s UK is built around two primary business units – Fresh and Added Value – supported by a fully-integrated higher welfare agricultural operation. Fresh operations consist of two pig abattoir and butchery facilities and a fresh pork processing site.

Throughout our business – from the farms where we raise our animals, to our state-of-the-art production facilities, through to the kitchens where we test and develop delicious meals – we are driven by our dedicated, expert and passionate people.

In addition, the Fresh business unit includes Pilgrim’s UK Lamb, a sub-division of the company with an abattoir in Llanidloes and a processing facility in Andover. Added Value operations consist of six processing sites, specialising in bacon, gammon, sausage, cooked meats and snacking products, producing 43,000 tonnes of products per quarter.

We produce the most sustainable pork and lamb in the market and we have the highest animal welfare standards – providing peace of mind that by choosing Pilgrim’s UK products you are helping to protect the environment.

Supporting over 1,000 UK farmers

Higher welfare vertically integrated supply chain

Geographically spread

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

330,000 pigs on the ground at any given time

11 Production sites in the UK

5 Fresh processing facilities

6 Added Value processing facilities

Processing up to 2.4 million pigs per year

Processing up to 1 million lambs per year

Contents

Our Business

Contents

Financial Performance We have continued to implement our evolved business structure under the leadership of President Ivan Siqueira and have introduced a range of measures to optimise Pilgrim’s UK’s operational footprint and drive operational excellence across the UK.

Revenue

Gross margin percentage

EBIT excluding exceptional items

EBITDA margin

52 weeks ended 25 December 2022

9.1%

52 weeks ended 25 December 2022

£2,644

52 weeks ended 25 December 2022

1.7%

52 weeks ended 25 December 2021

£1,167,630 £1,055,155

6.8%

£16,197

(EBITDA* as a percentage of revenue)

0.9%

Net cash

Operating Loss/Profit

UK SPP average

52 weeks ended 25 December 2022

52 weeks ended 25 December 2021

£2,270 £4,171 *£’000

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

-£11,023 -£20,360

(Red Tractor pig price)

174.66p 148.32p

Our Business

Contents

Ownership & Governance Pilgrim’s UK is a subsidiary of Pilgrim’s Pride Corporation – one of the world’s largest pig and poultry producers – which in turn is majority owned by JBS, the world’s largest food company by revenue. Recognised for producing highquality, affordable and wholesome fresh, frozen, and value-added food to consumers, retailers, distributors and foodservice operators around the globe, Pilgrim’s Pride Corporation operates protein processing plants and prepared-foods facilities in 14 US states, Puerto Rico, Mexico, the UK, the Republic of Ireland and continental Europe. With c.60,000 team members, the company takes great pride in providing more than 133 million daily servings of protein to retailers, restaurants, foodservice providers and consumers. Pilgrim’s Pride Corporation is proud to partner with more than 4,900 family farms for poultry and over 6,300 family farms for pig and lamb supplies. Pilgrim’s Pride Corporation is majority owned by JBS S.A. Having recently celebrated its 70th anniversary, JBS S.A. is a Brazilian multinational company and is the world’s largest food company by revenue. Headquartered in Sao Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Paulo, the company is present in more than 20 countries, and in all locations where it operates, more than 250,000 team members follow the same guidelines concerning economic, social and environmental sustainability aspects, innovation, quality and food safety, adopting best practices which are always based on the same Mission and Values. JBS has a diversified product portfolio, with options ranging from fresh and frozen meats to prepared meals, commercialised through brands recognised in Brazil and other countries, such as Friboi, Swift, Seara, Pilgrim’s Pride, Swift Prepared Foods, Plumrose and Primo, among others. The company also operates with correlated businesses, such as leather, biodiesel, collagen, natural casings for cold cuts, hygiene & cleaning, metal packaging, transportation, solid waste management solutions, recycling, and other innovative operations that also promote the sustainability of the entire business value chain.

JBS and Pilgrim’s Pride Corporation ranking globally ($bn) £72.6

£68.6 £60.2 £50.9

£30.4

JBS

Nestle

Pepsico

Tyson

Mondelez

JBS and Pilgrim’s Pride Corporation

82% of shares S.A

USA

20%

of shares Other shareholders (NASDAQ)

£29

Wimar

£26.5

Kraft Heinz

£24.3

Danone

£22.9

Unilever

£19

General Mills

Our Business

Contents

Market leader

The World’s Largest Food Company

No1

Global beef producer

Global poultry producer

Aquaculture New areas of growth

No2

Global pork producer

No2 Salmon producer in Australia

We are market leaders in multiple countries for prepared foods

Plant-based and alternative protein business

No1 No1

No1

No2

In the UK

In Australia

New Zealand

Brasil

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

largest Brazilian producer of plant-based protein

No3

European plant-based protein producer

Work is under way to build an industrial plant to cultivate protein.

Our Business

Contents

Pilgrim’s UK Executive Team Pilgrim’s UK is governed by its own UK-based Executive Team, which is responsible for the company’s day-to-day farming and processing facilities, commercial operations, new product development, business strategy development, operation footprint and future planning. Each member of the Executive Team is held accountable for the progress of their individual targets.

Ivan Siqueira President

Morten Knudsen

Chief Financial Officer

Daltro Strege

Operational Excellence & Continuous Improvement Director

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Rachel Baldwin

Vice President, Human Resources

Fabio Brancher

Operations Director – Agriculture

Rachel Griffiths

Mike Wijnberg

Chief Commercial Officer

Lee Rampling

Group Technical Director

Ian Bagnall

Managing Director – Fresh

Managing Director – Added Value

Spalding | Westerleigh Llanidloes | Andover | Bromborough

Bodmin | Kings Lynn | Redruth Corsham | Linton | Ruskington

Our Business

Contents

Our Vision, Method and Values

Everything we do across our entire supply chain is done with one goal in mind – to be the best and most respected company in our industry, creating the opportunity of a better future for our team members. This is our Vision and we are well on our way to realising it. For us, being the best and most respected applies to all that we do, from the way we feed and farm our animals to the quality of the products which are served up on the plates of millions of consumers at home and abroad. It’s our passion for excellence that drives us to be the best and we seek opportunities to diversify and grow our business, while responding to the needs of our team members, customers and consumers, through four distinct strategic pillars. The way we work is just as important and we have four key methods of working across our organisation.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Relentlessly pursue root cause

Drive ownership and accountability deeper

Make decisions based on knowledge, facts and data

Create growth and development opportunities that help our team members succeed

Our Business

Being the Best Central to our vision ‘to be the best and most respected’, Pilgrim’s UK is consistently recognised with prestigious awards for our farming, products, operations, sites and people.

Pilgrims UK Agriculture A Supply Chain that delivers…

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Contents

Our Business

Contents

Supply Chain Our well-established and dedicated pork and lamb supply chains serve up the equivalent of 6.7bn. meals every day for consumers in the UK and abroad.

Farming

Processing Added Value operations Centres of Excellence for:

Bacon

Gammon

Sausages

Slices cooked meats

Meat & non-meat snacking

Deli

BBQ

Slow-cooked

Fresh operations – pigs

Fresh operations – lamb

Pig abattoir & butchery

Lamb abattoir & butchery

Fresh pork products

Fresh lamb products

Customers Retail

Food service

Retail

Consumers

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Food service

B2B

Export

Our Business

Contents

Our primary focus is the UK retail market, where we work in partnership with many of Britain’s best known supermarkets. We also supply products to the food service and food-to-go markets, sell wholesale to other food companies seeking high-quality higher welfare raw material, and export to around 20 countries globally. We support more than 1,000 British pig farmers producing higher welfare, organic, free range and Red Tractor standard pigs. The majority of our pig supply chain is made up from our own BQP British farming operation, which consists of around 320 UK farms producing more than 1.5 million pigs every year. In addition, we procure pigs from UK independent Red Tractor farmers to meet some of our customers’ specification requirements. We operate one of the leading British lamb dedicated supply chains too, working with around 450 independent higher welfare farmers in Wales and England. We also work with a further 2,500 Red Tractor assured lamb producers within our other lamb supply chains.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Key export markets for Pilgrim’s UK China

Japan

South Korea

Denmark

Lithuania

Spain

Dominican Rep

Netherlands

Taiwan

France

Philippines

Trinidad & Tobago

Germany

Poland

USA

Ireland

Singapore

UAE

Ivory Coast

South Africa

Contents

Sustainability

Pilgrim’s UK 2030 > United Nations Sustainable Development Goals > Pilgrim’s UK’s 2030 Goals > Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainability

Contents

Pilgrim’s UK 2030 | United Nations Sustainable Development Goals

Pilgrim’s UK 2030

At Pilgrim’s UK, our sustainability effort is guided by our vision: to become the best and most respected company in our industry, creating the opportunity of a better future for our team members. To ensure a sustainable future, we need to think and act sustainably.

Each of these governance pillars is sponsored by a member of the Pilgrim’s UK Executive Team, who is held accountable for the progress of their pillar targets through established key performance indicators, which are in turn cascaded through sites and teams. This means everyone in the business has a role to play in achieving our sustainability ambitions.

Our Pilgrim’s UK 2030 sustainability strategy was launched in 2020 and covers the progress we’re planning to make over the course of the decade.

A Working Group has been established for each governance pillar, tasked with identifying, assessing and managing environmental, social and financial opportunities and risks associated with their respective pillar.

Being a sustainable business involves improving short and long-term profitability by managing economic viability, social responsibility, and environmental stewardship. In short, sustainability cuts through every part of our organisation, which is why our strategy is built upon five sustainability governance pillars, representing each key stage of our supply chain.

Overall governance sits with the Sustainability Steering Group, consisting of the Pilgrim’s UK Executive Team, the Head of Sustainability and the Head of Corporate Communications, together with various subject matter experts.

Our Supply Chain

Sustainable Farming

Sustainable Food Production

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainable Products

Sustainable Packaging & Plastic

Sustainable People & Community

Sustainability

Contents

Pilgrim’s UK 2030 | United Nations Sustainable Development Goals

United Nations Sustainable Development Goals The 17 SDGs As members of the UN Global Compact, Pilgrim’s UK’s sustainability strategy – ‘Pilgrim’s UK 2030’ – has been developed in line with the established UN Sustainable Development Goals (SDGs). The UN SDGs are a collection of 17 interconnected targets to drive global progress towards a more environmentally and socially sustainable world by 2030. In 2021, we undertook an assessment to prioritise and classify our focus within the SDG targets, splitting them into one of three groups: Contribute to Solutions; Benefit Stakeholders, and Avoid Harm. This enabled us to identify where we can make the biggest difference based on our specific activities, value chain and ability to directly contribute. This process identified the organisation can make the most significant impact by contributing towards solutions in eight of the 17 SDGs.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainable Farming

Sustainable Food Production

Sustainable People & Community

Sustainable Products

Packaging and Plastic

Sustainability

Contents

Pilgrim’s UK 2030 | United Nations Sustainable Development Goals

Contribute to Solutions

Benefit Stakeholders

Avoid Harm

In addition, each of our Pilgrim’s UK 2030 goals must: Be set in partnership with a credible third-party validator Be science based (measurable and achievable) Include a plan to achieve the suggested target (using a representative benchmark and proven mitigation strategies/practices) Be inclusive of supply chain partners

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainability

Contents

Pilgrim’s UK 2030 | United Nations Sustainable Development Goals

Pilgrim’s UK 2030 Goals 2025

2030

2035

Sourcing from Verified Deforestation and Conversion free (vDCF) areas by 2025

All cardboard to be sustainably sourced Reduction in total Plastics Footprint A minimum of 30% average recycled plastic in packaging by 2025 Conduct a Human Rights Impact Assessment (HRIA) within pig and sheep supply chain. Resolve actions from HRIA in collaboration with supply chain stakeholder. Periodically review need for further HRIA in high risk supply chain

50% reduction in water intensity by 2030

Net Zero – 2030 (Scope 1 & 2) 50% of fresh food sourced from areas with sustainable water management

Reduce edible food loss and waste 50% by 2030

Complete Life Cycle Assessments for all product Stock Keeping Units

Maintaining High Animal Welfare Standards

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Net Zero Scope 1 ,2 & 3

Contents

Journey to Net Zero

Introduction > Pilgrim's UK 2030 Net Zero Pledge > Our Net Zero Progress and Pledges >

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Journey to Net Zero

Introduction | Pilgrim’s UK 2030 Net Zero Pledge | Our Net Zero Progress and Pledges

Introduction

Central to the Pilgrim’s UK 2030 strategy is our pledge to become net zero across our Scope 1 and 2 emissions by 2030 and across scope 3 by 2035. But what does this mean? When we started our net zero journey, there was a high degree of ambiguity in terms of the definition of net zero. Pilgrim’s UK had been among many in the industry calling for a standardised definition. At Pilgrim’s UK, we now follow the Science Based Targets Initiative (SBTi) definition for Net Zero. The SBTi’s Net Zero Standard outlines what companies need to do to enable the global economy to achieve net zero and we will submit our net zero roadmap for SBTi approval in 2023.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Contents

Journey to Net Zero

Contents

Introduction | Pilgrim’s UK 2030 Net Zero Pledge | Our Net Zero Progress and Pledges

Pilgrim’s UK’s Carbon Footprint

Scope 1 Direct emissions Direct Greenhouse Gas (GHG) emissions occur from sources that are owned or controlled by the company; for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles or emissions from chemical production in owned or controlled process equipment.*

Scope 3 Indirect value chain emissions Scope 3 is a reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company – typically as a result of supplier or customer activities.*

Scope 2 Indirect emissions Emissions from purchased electricity, heat, and steam for use in business operations. Scope 2 emissions physically occur at the facility where electricity is generated, and so would fall into the scope 1 category for the power generator.*

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

* Sourced from https://sciencebasedtargets.org/blog/net-zero-jargon-buster-a-guide-to-common-terms

Journey to Net Zero

Contents

Introduction | Pilgrim’s UK 2030 Net Zero Pledge | Our Net Zero Progress and Pledges

Pilgrim’s UK’s 2030 Net Zero Pledge Establish Net Zero Target and SBT Pathway

Increase Renewable Energy

Reduce Operational Energy Use

Set an approved Science Based Target against Pilgrim’s UK’s scope 1, 2 and 3 emissions.

Prioritise on-site renewable energy generation.

Reduction in energy demand and consumption will be prioritised over all other measures.

Off-site renewables will deliver 100% renewable energy consumption.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Our energy consumption will be calculated and publicly disclosed on an annual basis.

Reduce Our Impacts

Neutralise Residual Emissions

A whole product life GHG assessment will be undertaken and disclosed for all products to drive GHG reductions.

Any remaining residual GHGs from our products or operations will be neutralised with a recognised framework.

Phase out of suppliers who are not meeting GHG emission targets.

The amount of residual emissions neutralised will be publicly disclosed.

Journey to Net Zero

Contents

Introduction | Pilgrim’s UK 2030 Net Zero Pledge | Our Net Zero Progress and Pledges

Our Net Zero Progress and Pledges Pledge/objective

Key date

We pledge to become a Net Zero business across our own operations and entire value chain by 2035.

2035

Status

On Track

Commentary

Next Year- 2023

Total Scope 1, 2 & 3 location-based emissions reduced by 9.7% from 2019-2022. Total Scope 1, 2 & 3 market-based emissions reduced by 11.0% from 2019-2022.

Further reduce our Scope 1, 2 & 3 GHG emissions. Through GHG investment programme for Scope 1 &2 emissions utilising our Net Zero roadmaps. Continuation of Net Zero livestock programmes, decarbonisation of transport/logistics, and completion of life cycle assessments on all product SKUs.

SCOPE 1&2 GHG Emissions (tCO2e) Scope

2019

2020

2021

2022

Scope 1

31,950

33,317

28,330

28,518

Scope 2 location-based

32,503

25,067

23,347

20,298

Scope 2 market-based

44,190

Scope

2019

2020

2021

2022

Scope 3

2,216,874

1,966,114

2,138,144

2,011,974

Purchased goods and services

1,434,626

1,193,274

1,338,800

1,230,878

Capital goods

29,299

13,892

25,136

2,301

Fuel and energy related activities

12,134

9,309

12,958

11,311

Upstream transport

28,230

27,341

16,777

18,653

Waste generated in operations

517

431

527

482

Business travel

2,791

2,974

683

468

Employee commuting

6,847

2,987

2,941

2,702

Upstream leased assets

581

291

260

Downstream transport

30,923

61,467

48,521

57,435

Processing of sold product

132,281

101,325

136,680

135,377

Use of sold products

515,443

532,421

532,682

529,492

End of life

23,022

20,402

22,179

22,786

Total Scope 1, 2 & 3 Location-based

2,281,327

2,024,498

2,189,821

2,060,789

Total Scope 1, 2 & 3 Market-based

2,293,014

1,999,431

2,166,474

2,040,491

SCOPE 3 GHG Emissions (tCO2e)

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Contents

Pilgrim’s UK’s Higher Welfare Pig Production > BQP Outdoor Bred Overview > Logistics > British Quality Lamb All Year Round > Animal Feed > Deforestation and Conversion > Soya use in the UK industry > Progress on Deforestation Commitments > Animal Welfare, Health and Antibiotics > Biodiversity and Soil > Water Stewardship > Sustainable Farming Progress >

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainable farming

Contents

Pilgrim’s UK’s Higher Welfare Pig Production Pilgrim’s UK is one of the biggest food companies in the country, it is also one of Britain’s higher welfare pig farmers. Agriculture forms the solid foundation upon which the Pilgrim’s UK business model is built. The company’s farming heritage dates back to the 1980s when its in-house higher welfare pig production operation, BQP, was founded. Today, our agricultural operations consist of our own outdoor breeding and growing pig production system, plus free range and organic pig production, the procurement of Red Tractor pigs, procurement of higher welfare lamb, and a research & development trials farm. We work with more than 1,000 British pig farmers and 450 of the UK’s leading independent lamb producers, plus 2,500 Red Tractor Assured lamb producers.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Within Pilgrim’s UK’s higher welfare pig and lamb supply chains, we make sure that our farming partners thoroughly understand our animal welfare requirements, and regularly support them through farm visits and training on animal husbandry, welfare, health and environmental matters, provided by our own team of experienced field staff. We also host quarterly update meetings with our family farm partners alongside training initiatives. At Pilgrim’s UK, routine tail docking and castration are not permitted. Pilgrim’s UK continues to lead the industry in research to advance animal welfare. Our current research includes a project examining pig beahviour and its impact upon tail biting. The objective is to understand more about causal factors associated with tail biting and how tail docking can be reduced.

Pilgrim’s UK has introduced an industry leading initiative in our own higher welfare farming supply chains to reduce the need for antibiotic use by improving pig management and health. We have voluntarily implemented stringent controls on the use of Critically Important Antibiotics (CIAs). Since implementing our antibiotic stewardship strategy in 2013, we have reduced use by more than 70%. Antibiotic usage within our own higher welfare supply chain has been consistently below the UK pig sector target for 2022. Pilgrim’s UK’s independent supply partners have achieved the Responsible Use of Medicines in Agriculture Alliance (RUMA) target for the responsible use of antibiotics since its start in 2017.

Pilgrim’s UK also sources animals from independent farm partners. Those partners meet, and often exceed, the requirements of the Red Tractor or QMS assurance schemes and must provide pigs with permanent access to environmental enrichment. Pilgrim’s UK also requires that sows are housed in open pen systems during gestation. At Pilgrim’s UK, our pork and lamb production facilities require that livestock are moved in their social groups, and livestock trailers are equipped with lifting decks to make loading as stress free as possible. Trailers are bedded with straw and in the summer months extra drinking water is provided. We monitor transport time with an average journey time of four hours, and our position is that no animal should be in transit to Pilgrim’s UK production facility for longer than eight hours.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

,0 r1

farmers ritish B 0

tin g

ov e

BQP Supply Chain

Supp or

Pilgrim’s UK’s BQP division has higher welfare supply chain contracts with farmers who raise all sows according to the RSPCA higher welfare outdoor bred standards as a minimum. Sows are free from confinement during gestation and farrowing. Pigs are born outdoors and are provided with shelter, where they remain until they are weaned at approximately 35 days of age. All of our pigs in our higher welfare supply chain have permanent access to environmental enrichment.

BQP

65% Standard UK production

35%

Outdoor bred pig production

Indoor bred pig production

BQP & independent farmers working to RSPCA and own bespoke standards.

Red Tractor/QMS indoor pig production. Independent Farmer Supply Base.

Contents

Contents

BQP 40 years of experience as the largest and most sustainable producer of higher welfare pork in the world.

breeding herds

1.5M+ pigs per

200+ grower farms

annum

100% of breeding herds

form part of a mixed rotation with arable crops – using pigs to help regenerate soils

100%

of BQP’s operation is RSPCA Assured higher welfare. Our supply chain is the UK’s largest supplier of: Organic Free Range Outdoor Born

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

57,000 sows of output +20,000 sows from associated producers

BQP Outdoor Bred Overview Pilgrim’s UK has over 15 years’ experience of R&D into low GHG farming and has implemented all commercially viable GHG emission reductions across its integrated pig systems. Our average Pilgrim’s UK pork farm footprint is 2.53 Kg CO2e/ Kg Liveweight.

Outdoor bred pigs comprise 65% of Pilgrim’s UK’s pig supply chain.

2.1 million Number of pigs processed annually

3.86hrs Average pig transport time

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

625,000 of BQP finished pigs sent to abattoir each year

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Pilgrims UK’s award-winning supply chain covers all aspects of pig production

Field Staff & Farm Compliance Support

Feed

Transport

BQP feed team formulates our pig diets and delivers feed to our farming partners

Control over BQP’s own livestock transport fleet

Specialist staff focused on assisting farmers cost of production

RSPCA specify that most journey times are no longer than 6 hours – average time for Pilgrims UK pig transport is below 4 hours

Advise on environmental issues

Certified deforestation and conversion free soya procured on Mass Balance since 2023

Liaison with in-house veterinary team

Dedicated R&D Trial Facilities

Veterinary Support & Medicines

Purpose-built facility, designed to carry out performance studies on growing and finishing pigs

Team of pig focused veterinary surgeons

Drive efficiency & reduce cost of production

In-house Dispensary, allows monitoring & reduction of antibiotics usage

Create unique points of difference for our customers

External pig veterinary consultants

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Logistics We are committed to improving animal welfare standards within the business and with our suppliers based on the five freedoms as recognised by the Farm Animal Welfare Council. Pilgrim’s UK is the only UK pig producer and processor that has processing facilities located in the southwest, east and the north of England. This enables us to work with the best farmers located across the UK, again ensuring that the pigs’ lives are kept as stress free as possible by providing them with processing facilities closer to the farms on which they are grown. All livestock hauliers delivering BQP pigs are approved by the RSPCA or Red Tractor and all livestock drivers receive specialist welfare training. No electric goads are used in the handling, moving and loading of pigs onto livestock vehicles.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Wherever possible, pigs are moved in their social groups, and are provided with straw for their journeys. All trailers are equipped with lifting decks to make the loading and unloading of pigs as stress-free as possible. In our independent farm supply chain, all livestock hauliers delivering pigs to our processing facilities are a minimum of Red Tractor assured. We monitor all pig journey times to the processing facilities. The current average journey time is 3.83 hours. Our position is that no journey must be scheduled with an intention of extending beyond eight hours from first animal loaded on farm to last pig unloaded at the processing site. For our lamb supply chain, eight hours is the maximum permitted transport time from farm to the processing site. The current average journey time is 1 hour 45 minutes and all transport vehicles are Red Tractor assured.

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Industry leaders in low GHG pig farming

BQP Farm-gate GHG Emissions

We are global leaders on low GHG emission livestock supply chains and work with third parties to undertake assessments of 25% of our producers annually.

63% Feed

100% Higher Welfare Low GHG diet formulations Lowest soya inclusion levels in Europe

LW g k 2/

Chicken 2.28 Pilgrim’s UK – Pork Comparison to other UK Liveweight averages

14% Emissions from piglets

2.53 Chicken Turkey 2.28

10% Methane (Enteric)

3.83

Pilgrim’s UK – Pork Pork 2.53

4% N20 (Deposition)

4.68

4% N20

Turkey UK – Lamb Pilgrim’s 3.83 4.75 Pork Lamb 4.68

<0% Fuel

10.94

<0% Electric

Pilgrim’s UK – Lamb Beef 4.75

11.77

<0% Water

Lamb 10.94 Beef 11.77

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

<0% Bedding

1% Methane (Manure)

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Case study: Meet our sustainable farmers Lizzie Murrell manages a herd of 2,000 pigs on the 60-acre farm that she rents from her grandfather. The animals are raised in batches, arriving as weaners at five weeks old, and stay on the farm to finish. The scale and design of the farm, along with the support of Pilgrim’s UK, allows Lizzie to run everything single-handedly. She’s currently on her eighth batch of pigs having taken responsibility for the operation at the age of 19. The pigs are housed in three newly-built sheds, each divided into eight pens. The sheds and pens are larger than the standard size, something Lizzie says allows her to ensure high levels of welfare for the pigs in a non-energy-intensive way. “While they’re deceptively simple in construction, a huge amount of experience has gone into the design of the sheds here – they’re actually a ‘mark four’ design as my grandfather re-built them three times until he was happy with them.”

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

“The large size of the sheds means the pigs have plenty of space to express their natural behaviours, plus the space is completely naturally lit and ventilated. There is no disadvantage to us in using larger sheds, as we have plenty of space, and the bigger pens means there is less need for transport around the farm, keeping our fuel use down.” Lizzie has also installed solar panels on the shed roofs, which supply the majority of the electricity consumed by the operation, and water is sourced from an on-site borehole, saving further costs. A local muck-for-straw agreement means that all bedding straw is sourced within a few miles of the farm and the muck generated is used locally too. “It feels like a true partnership. Pilgrim’s UK is invested in helping us get the best possible results from the pigs, so whether it’s a medical issue or we need to change the feed balance slightly, or a million other things, we always get the support we need. “With Pilgrim’s UK’s help, the farm is running very well, and, because of that, I’ve started thinking about expansion plans, possibly by adding another shed to the operation.”

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British Quality Lamb All Year Round

We work with around 450 of the UK’s leading independent lamb producers to procure high-quality British lamb. Our higher welfare sheep farming partners are located in Wales and the West Country of England. In 2022, Pilgrim’s UK moved away from a traditional seasonal model to provide higher welfare British lamb all year round. In our wider lamb supply chain we source from farms in England, Wales and the Scottish Borders. These regions are renowned for their grass conditions, making them an ideal location for extensive lamb production. All our lambs are reared outdoors, grazing on grass and foraging crops.

All Pilgrim’s UK higher welfare lamb producers are Farm Assured and raise lambs according to our higher-thanindustry standards, which are independently audited by Farm Assurance Assessors. Our lamb producer partners also complete a Responsible Efficient Production Assessment biannually. This assessment evaluates the farm’s production, health, welfare and environmental standards. This allows our producers to understand their sustainability journey and identify any opportunity areas within their farms.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Animal Feed Animal feed is one of the largest contributors to emissions in our farming operations and one of the biggest costs for our farming partners. Our team of experienced nutritionists and scientists is responsible for all aspects of feed formulation, ensuring that all our feeds are sustainable and maximise pigs’ health, welfare and performance. One benefit of being part of a large multinational business is that we work very closely with our international raw material buying colleagues. That gives us extra insights into the global feed markets, helping us navigate their unprecedented volatility, which has been aggravated by the coronavirus pandemic and war in Ukraine, driving up prices.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

While no one is immune to global inflation, this has helped us avoid the worst price peaks. Another key focus is reducing the amount of soya in our feeds because soya farming can be a significant driver of deforestation. That’s why, we’ve pledged to use only verified Deforestation and Conversion Free (vDCF) soya to feed our pigs by 2025. But not all innovation happens in a laboratory; we’ve also switched to feeding our sows from troughs, instead of scattering the feed on the ground. Our research shows this saves 12% of feed, which would otherwise be pinched by peckish birds!

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Deforestation and Conversion Due to the nature of our products and our supply chain, we recognise that there are deforestation and conversion risks associated with some of the forest risk commodity products that we purchase directly, or that are embedded within other ingredients that we procure. These products are: Palm Oil Pulp and paper for packaging materials Soya for Animal Feed

Pilgrim’s UK is a member of the UN Global Compact and our Pilgrim’s UK 2030 sustainability strategy is aligned with the UN Sustainable Development Goals. In relation to Goal 15, ‘Life on Land’, Pilgrim’s UK seeks to protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, halt and reverse land degradation and prevent biodiversity loss associated with our supply chain activities. As a signatory of the UK Soy Manifesto, we are committed to ensuring that all physical shipments of soya to the UK are verified to be fully implemented immediately where possible and no later than 2025.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Since 2018, we have been members of the UK Roundtable on Sustainable Soya, where we sit on a number of steering groups. We are signatories to the Business Statement of Support for the Cerrado Manifesto and full members of the Soy Transparency Coalition. All paper and pulp packaging will be certified as sustainably sourced by 2025, through either the Forest Stewardship Council, the Programme for the Endorsement of Forest Certification, or a comparable scheme. Pilgrim’s UK commits to report annually on progress towards our deforestation commitments from FY2023.

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Soya use in the UK industry The majority of UK and European pig diets are cereal and soya based. On average, soya accounts for approximately 10 – 15% of a pig’s diet, but this will vary at different stages of the production cycle based on the animal’s dietary requirements. Approximately 90% of soya consumed in the EU is used in livestock feed, mostly as soya meal, due to its high protein content. It is worth noting that, although soya used in pig diets in the UK is sourced as ‘any origin’, only an extremely small amount of soya utilised in pig supply chains is sourced from South America. The total volume of soya imported directly into the UK each year is estimated to be 3.2 million tonnes, predominantly from Argentina & Brazil. When including soya sourced from territories considered at low risk of deforestation and soya covered by the Amazon Soy Moratorium, the total proportion of soya imported into the UK which is considered vDCF is approximately 65%. Chickens followed by pigs are the largest consumers of soya in the UK.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Progress on Deforestation Commitments Through over a decade of investment in strategic feed R&D, Pilgrim’s UK’s Agriculture operations have achieved an industry-leading position in terms of innovation in soya sustainability. At times reaching soya inclusion levels in feed as low as 5% across the life of the pig and 0% in finisher diets. Note: inclusion levels below 5% across the lifetime of a pig can negatively impact on other key performance metrics and ultimately the wellbeing and welfare of the pig. Therefore, Pilgrim’s UK does not currently target inclusion levels below 5% in pig diets.

Pilgrim’s UK can confirm that:

Palm Oil 100% of palm oil used within ingredients in either Pilgrim’s UK’s integrated farming supply or food processing operations is sourced as RSPO certified. Pilgrim’s UK maintains certification with RSPO for our relevant processing sites through our parent company, JBS.

Pulp and Paper From January 2023, 100% of pulp and paper products are sourced sustainably. With 89% of that total being FSC certified and the remaining 11% being PEFC or a comparable certification scheme.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Soya All soya fed to our pigs is covered by a minimum of RTRS credits. This has been the case since 2017 for pigs in our integrated supply chain and since 2019 for our wider supply base (including third-party producers).

As of January 2023, 100% of soya sourced for Pilgrim’s UK’s integrated pig supply is certified Deforestation and Conversion Free (cDCF) and sourced as either RTRS Mass Balance Soya or from North America. Following work undertaken on our dedicated trial farm, Pilgrim’s UK’s nutritionists have been able to reduce soya inclusion levels within pig feed down to 0%, however in formulating diets our target is to optimise nutrition and cost effectiveness whilst maintaining as low a level as soya inclusion as possible. For 2022, our inclusion level was 7%. Over the past decade, Pilgrim’s UK has led various feed development trials to investigate alternative sources for proteins. This has included growing and using Danube soya in our pig feed formulations and trialling UK grown peas, beans and lupins. Pilgrim’s UK is committed to maintaining low volumes of soya in our pig diets and are currently working on further R&D trials, including Insect Meal trials overseas. Pilgrim’s UK 2030: Sustainability Strategy Progress Report

We engage with our feed suppliers and soya traders to be able to understand country and region of origin information for all soya used within our integrated production systems and we continue to support increasing transparency through the Soy Transparency Coalition and the UK Soy Manifesto. Pilgrim’s UK is engaging a third party to support with calculating the embedded soya footprint of our ingredients supply. We will continue to work with suppliers to improve data quality and provide a progress report once that work is completed. Pilgrim’s UK is partnering with our Pilgrim’s Pride Corporation ‘sister’ Business units in Europe to review and align our Responsible Sourcing programmes. Once this process is completed, we will be reissuing updated Supplier Code of Conduct and Responsible Sourcing Policies to suppliers. Pilgrim’s UK continues to advocate within our wider supply chain and through working groups for our various memberships and voluntary agreements to support the adoption of a mass market solution for soya for the UK.

We will continue to review our position on progressing our deforestation commitments and report on progress to our commitments annually.

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Animal Welfare, Health and Antibiotics Healthy pigs are contented, productive pigs and we continually invest to improve their wellbeing. We are very proud that Pilgrim’s UK has pioneered five-week weaning of pigs in the UK, while most independent producers have stuck with three or four weeks. It means each piglet spends an extra week with their mum before moving on to the next stage of their rearing, helping them to grow stronger. Getting a better start in life also means they require less feed overall and less medicine. To ensure all is well, our in-house vets visit every farm every quarter to review pigs’ welfare and provide advice and treatment plans for the next three months. We’re committed to the responsible use of medicines, including antibiotics, because their overuse contributes to higher levels of antibiotic resistance, both in animals and humans. All producers within our higher welfare lamb supply chain submit

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

on-farm antibiotic usage reports on a quarterly basis. Through these reports we determined antibiotics were most used to treat lameness, and therefore, to further reduce antibiotic usage within our supply chain, we partnered with MSD and successfully trialled the use of vaccinations to reduce the number of lameness incidences on-farm. Our supply chain has consistently lower antibiotic usage than the industry standard and the industry target. We prefer to keep our animals healthy through good farm management practice. Indeed, we believe in the Responsible Use of Medicines in Agriculture Alliance (RUMA) principle: ‘as little as possible, but as much as necessary’. We’re also working with new pig breeds, which are less aggressive, more content and less prone to tail biting, which can be a problem when pigs live together in big groups.

Every pig in our supply chain meets the ‘five freedoms’ as defined by the Farm Animal Welfare Council. Freedom from Hunger and Thirst – by providing ready access to fresh water and a diet to maintain full health and vigour. Freedom from Discomfort – by providing an appropriate environment including shelter and a comfortable resting area. Freedom from Pain, Injury or Disease – by prevention or rapid diagnosis and treatment. Freedom to Express Normal Behaviour – by providing sufficient space, proper facilities and company of the animal’s own kind. Freedom from Fear and Distress – by ensuring conditions and treatment, which avoid mental suffering.

Biodiversity and Soil

Done right, farming pigs outdoors can help improve the quality of the land. That’s a key principle of our regenerative approach. All our higher welfare sows spend their entire lives outdoors and play a key role in the farming rotation. That’s when our farmers’ fields host our pigs for two years, before the land is then turned back over to the arable production. Before our pigs are housed on a site, our team undertake assessments to ensure that environmental risks to water courses and other sensitive receptors are removed or mitigated. During the time the pigs are on the land, they produce manure which enriches the soil and improves its water holding capacity, helping the subsequent arable crops to be more resistant to drought.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

That makes the land more productive for growing crops like cereals or potatoes, boosting yields and removing the need for arable farmers to use synthetic fertilisers. A large proportion of our producers are members of Glastir in Wales, or stewardship schemes in England where they are encouraged to create and maintain a diverse range of habitats. Some of the practices carried out include: hedge planting, pond creation, woodland creation, double fencing to create wildlife corridors, reduced stocking densities, encourage mixed grazing and the inclusion of multi-species leys. We’ve been farming this way for more than 30 years because we know it’s a tried and tested way to regenerate soil health and increase biodiversity.

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Regenerative Practices 100% of our Breeding Herd is farmed in a mixed rotation. Including pigs in a mixed rotation increases organic matter content, improves soil health and sequesters carbon in soil. We monitor soil health across sites to give an indication of soil metrics through the wider mixed-rotation.

1st rotation

In rotation, our pigs have been found to increase organic matter by 1.75% 4th rotation

We have identified measurable improvements in: Soil health Soil water holding capacity Reduction in the need for artificial petrochemical fertilisers Soil pH Levels Soil organic carbon levels

2nd rotation

3rd rotation

Healthy soils support ecosystem function

Water Storage + Filtration

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Carbon Capture + Storage

Biological Function + Diversity

Productivity Capacity

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Soil Health & Soil Biodiversity

Improvments worth up to £175/ha

Nonchemical weed control

Increased soil productivity

Incorporating livestock into arable rotation fields contributes to weed control and improves soil structual quality

Soil organic matter N.P and K natural levels

61% increase in organic matter (OM) 20.59 t/ha increase in carbon sequestration

Up to £26.95/ha for fertilisers savings

Microbial activity 59% increase in microbial respiration

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Water-holding capacity Up to 40k L/ha water saved per 1% increase in OM

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Water Stewardship Pilgrim’s UK is a supporter of the Courtauld 2030 Water Roadmap and also a member of the Courtauld Water Oversight Panel. We support several river catchments across the UK and directly provide funding for the Broadland Rivers and Cam and Ely Ouse (CamEO) collective action projects. The primary focus of our efforts is in East Anglia, as a significant proportion of our pig herd is situated in this region. Through our Courtauld 2025 Commitments we have been engaged in several R&D projects to improve water stewardship practices with our partners at Norfolk Rivers Trust. These have most recently been: investigating methods to reduce Soil Leaching by trialling different grass seed varieties/mixes, developing case studies assessing Farmyard Manure (FYM) management on farm and how this can benefit soil health and water retention, and studying the benefits of utilising pollinator buffer strips to prevent runoff from fields to rivers, in addition to the biodiversity benefits.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Catchment approach – Supply chain mapping and risk assessment: Collaboration and funding with the Rivers Trust to develop Agricultural Advice Hub Vulnerabilities Tool to risk assess our tier 1 farming suppliers. On-farm assessments to complement our supply chain assessments. Supporting new farm advice within high risk catchments.

Broadland Rivers and CamEO Source of 1/3 of all UK veg Water quality & scarcity pressures

Biodiversity Developing local and system-scale interventions to improve biodiversity within our supply chain – growing relationships with landowners and R&D bodies. Current workstreams: Planting pollinator/buffer strips on breeding farms Bird boxes and feeders Grass cover trials Grass mix comparisons – focus on grazing Stocking density/preventing access Farm biodiversity assesments and action plans being rolled out and implemented through 2022 and 2023

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Sustainable Farming Progress Pledge/objective Net Zero across our entire value chain by 2035 (Scope 3).

Sourcing deforestation risk commodities from Verified Deforestation and Conversion free areas by 2025.

Key date

2035

2025

Status

Commentary

On Track

Pilgrim’s UK continued to produce an Continue R&D programmes into reducing annual GHG inventory. Between 2019 and Scope 3 emission reduction opportunities, 2022, Pilgrim’s UK achieved a 9% reduction with priority focus areas in agriculture, in total Scope 3 emissions. packaging and transport.

On Track

Next Year- 2023

100% of paper and pulp products sourced Report annually on progress towards our as Verified Deforestation and Conversion deforestation commitments in line with free. 100% palm oil RSPO certified. UK Soy Manifesto requirements. Complete Pilgrim’s UK pledge to following the UK transition to certified deforestation and Soy Manifesto requirements and recognise conversion free soya for Pilgrim’s UK’s own our responsibility to support third party, integrated farming operations. independent producers to meet the targets. Read more on our deforestation policy We will be continuing to undertake assessments of our supply chains and will be undertaking R&D programmes into on farm sustainable water management.

50% of fresh food sourced from areas with sustainable water management.

2030

On Track

Pilgrims UK funded the development of The Rivers Trust AgHub risk assessment tool and using the risk assessment tool, we have assessed 100% of our sites, pig suppliers and lamb suppliers in England and Scotland. Pilgrim’s UK is a member of The Courtauld Agreement and support collective action agreements across The UK.

Maintain high animal welfare standards

Each Year

Ongoing

In 2022, 100% of Pilgrim’s UK’s farming operations were RSPCA assured and Red Tractor certified.

Maintain current high standards of animal welfare. Continue R&D work streams to continuously improve.

Reduce soya content in feed to 7%

2022

Achieved

Current soya inclusion for Pilgrim’s UK’s integrated farming operations is 7%, against an industry average of 15%.

Continue with 7% inclusion level target. Transition soy to certified deforestation and conversion free from January 2023.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Pledge/objective

Key date

Status

Commentary

Next Year- 2023

Achieved

Palm oil is included as part of a vegetable oil blend in pig diets. We have reduced Inclusion rates in diets to 0.3% vs a target of <1%.

Continue to target a <1% inclusion rate for palm oil. Continue to source 100% of our palm oil from RSPO certified sources.

Each Year

Achieved

In 2022, Pilgrim’s UK’s integrated breeding Continue to enhance and nurture farm operations planted 23ha of Bee’s & biodiversity within our supply chains. Seed mix and 24ha of Pollinator mix. In total creating 47 ha of pollinator buffer strips around field margins of our sites.

Each Year

In 2022, Pilgrim’s UK continued to successfully assess the GHG emissions of Opportunity 25% of its pig farming operations. Due to the acquisition of Pilgrim’s UK Lamb in Area late 2021, lamb GHG assessments for 2022 were put on hold.

Target to include <1% of Palm Oil in diets

To plant >10 ha of pollinator strips annually.

GHG Emissions- Assessment on farms

In 2022, pig antibiotic usage was 85.5 mg/ PCU. For sheep, it was 6.5 mg/ PCU.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

100%

of Pilgrim’s UK’s integrated pig producers are RSPCA and Red Tractor certified.

Continue to assess pig farming operations annually. Recommence with lamb farm GHG assessments.

In 2022, we worked with almost 1500 pig and lamb producer partners.

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Sustainable Food Production

Introduction > Sites and Centres of Operational Excellence > The Components of Pilgrim’s UK Net Zero Pathway – Scope 1 & 2 emissions > Sustainable Food Production Pledge >

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainable Food Production

Contents

Introduction | Sites and Centres of Operational Excellence | The Components of Pilgrim’s UK Net Zero Pathway | Sustainable Food Production Pledge

Introduction The food sector is responsible for a third of the world’s greenhouse gas emissions, which is a massive challenge for the global industry. At Pilgrim’s UK, we understand we have a vital role to play in helping to reduce these GHG emissions, especially within the areas where we have the most control – in our factories and production facilities. So, we’re maximising our GHG reduction initiatives, to help accelerate our pathway towards net zero in our own operations. We process more than 40,000 pigs and over 16,000 lambs in our factories and abattoirs every week. Our products end up on the shelves of the major supermarkets and food service outlets across the UK. These are significant volumes, so as part of our over-arching net zero strategy, we’ve rolled out net zero roadmaps for each of our 11 manufacturing sites, focussing on behaviours and investment. In 2022, we kicked off a full net zero investment road mapping process to identify all known projects that could be implemented across our factories, modelling for multiple different

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

£10 Spending

future operational scenarios, and then selecting an optimal investment roadmap for each site. We completed a review of half of our sites in 2022, and the remainder will be completed in 2023.

million

of our capital expenditure to implement a series of process innovations and operational improvements.

Over the past 12 months, this activity has been underpinned by a commitment to spending £10 million in capital expenditure to implement a series of process innovations and operational improvements. Our sites are centres of operational excellence and deploy techniques to uphold this status. This has helped to reduce our GHG emissions to date thanks to lean manufacturing processes, which we’re proud to maintain. As a result of our efforts and investments to date, we’ve reduced our Scope 1 & 2 market based (GHG) emissions by 62.5% since 2019.

As a result of our efforts and investments to date, we’ve reduced our Scope 1 & 2 greenhouse gas (GHG) emissions by

62.5% (against a 2019 baseline).

Pilgrim’s UK sales breakdown 13% Wholesale

12% Foodservice

UK sales by sector

75% Retail

45% Rest of the world

Overseas sales

55% China

Sustainable Food Production

Introduction | Sites and Centres of Operational Excellence | The Components of Pilgrim’s UK Net Zero Pathway | Sustainable Food Production Pledge

Contents

Sites and Centres of Operational Excellence

3,265 employees identify as male

1,666 employees identify as female

715 employees are under 30yrs

1,763 employees are over 50yrs

2,453 employees are aged 30-50yrs

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Our food production expertise is built on many generations of food heritage and experience, alongside our passion for innovation. We’re real food champions and take pride in our craft, and our passion for food is demonstrated every day by the 4,500 team members who operate 11 processing sites strategically located across the country. These sites produce a wide range of high quality, good value and nutritious foods to meet the diverse tastes of consumers in the UK and abroad. As sites of operational excellence, we’re setting the bar high for sustainable food production. Our products range from fresh pork and lamb, cooked meats and sausages to bacon, gammon, bbq and slow-cooked, as well as a range of popular non-meat products. Our Fresh operations consist of two pig abattoir and butchery sites and a fresh pork processing site, in addition to our Pilgrim’s

UK Lamb operations. Pilgrim’s UK Lamb consists of an abattoir and butchery facility in Wales and a fresh lamb processing facility in Andover. Our six Added Value facilities are centres of excellence for food production, combining skills and crafts honed over generations with the latest state-of-the-art manufacturing technology. Four of these sites have won the Food Manufacture Excellence Awards Site Team of the Year category during the past six years.

Our six Added Value facilities are centres of excellence for food production

Sustainable Food Production

Introduction | Sites and Centres of Operational Excellence | The Components of Pilgrim’s UK Net Zero Pathway | Sustainable Food Production Pledge

Energy A big part of our work to save energy is behavioural, so it is important that all our colleagues understand how small things like turning off lights and keeping doors closed to retain heat can make a big difference. We only use 100% renewable electricity across our sites, and we’ve installed energy-saving LED lighting where possible, which automatically switches off when someone leaves the room. We constantly monitor our energy use so can react instantly to reduce consumption by shutting down machinery at quiet times and improving efficiency. We already have solar panels fitted at two sites, and we’re looking at rolling this out across our estate over the next few years. Another area we are exploring is heat recovery; putting the waste heat generated by some of our machinery

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

to work heating our buildings and offices. That will require significant investment, but we’re looking at the feasibility for each site on a case-bycase basis.

Measuring and reporting Above all, we believe you can’t manage what you can’t measure. We have invested significantly into our sub-metering infrastructure across all our manufacturing sites, using a web based reporting system which captures high-frequency, real-time data to monitor our performance. We use this data to produce daily, weekly, and monthly reports which are utilised within our operational excellence processes to ensure we are continuously improving. We’ve also piloted AI and Machine Learning tools as part of our data capture and reporting processes, to improve our ability to identify opportunities for system improvement and removing the need to review data manually.

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Sustainable Food Production

Introduction | Sites and Centres of Operational Excellence | The Components of Pilgrim’s UK Net Zero Pathway | Sustainable Food Production Pledge

Contents

The Components of Pilgrim’s UK’s Net Zero Pathway – Scope 1 & 2 Emissions

Behaviour & Investment

Absolute GHG emissions (million tonnes CO2)

Opportunity for process innovations (R&D)

Low carbon technology for both electricity and heat

Net zero operational excellence plan Continuous improvement a vital component in our operations

Net zero improvements and capital investment plan

Current performance

Growth

Operational improvements

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Standard technology

Process optimisation

Process innovations

Low carbon heat

Onsite renewables electricity

Offsite renewables electricity

Remaining carbon

Sustainable Food Production

Introduction | Sites and Centres of Operational Excellence | The Components of Pilgrim’s UK Net Zero Pathway | Sustainable Food Production Pledge

Water Our factories use significant volumes of water, particularly for cleaning. So, we work closely with our suppliers to design effective cleaning programs that minimise water use, and we constantly monitor our water consumption to help achieve that. It also helps us to spot and fix any leaks. The water we discharge from the majority of our sites goes through our onsite effluent plants to make sure we’re only returning clean water to the environment. And water quality is monitored so any issues can be quickly identified. The primary indicators we measure related to water use include total water withdrawal by source, total water reused, and total water use intensity (water use per unit of production) to consistently identify opportunities for improvements. We’ve set ourselves an overall goal to reduce our water use intensity by

by 2030

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Thanks to these practices, the cleaner water that travels through the

Contents

effluent plant requires less energy to process it. Each facility sets individual water-use goals and targets to ensure each site is held accountable. We also work in collaboration with our environmental, engineering, operations and food quality and safety teams when designing and implementing conservation strategies to ensure they do not interfere with food safety protocols. While we can and do introduce measures to ensure the water we use is cleaned effectively and doesn’t have a negative impact on waterways and local biodiversity – the most effective way to ensure this doesn’t happen, and to reduce the amount of energy we use, is to use less water. So, we’ve set ourselves an overall goal to reduce our water use intensity by 50% by 2030. So far we’ve reduced water intensity by 13.5% against a 2019 baseline already.

Sustainable Food Production

Contents

Introduction | Sites and Centres of Operational Excellence | The Components of Pilgrim’s UK Net Zero Pathway | Sustainable Food Production Pledge

A target to reduce general waste by

Waste We’re always working to minimise the amount of waste we produce and recycle everything we can, with a target to reduce general waste by 10% every year, and a 50% reduction in food waste by 2023. But it’s not just about ensuring that we don’t waste energy, time and resource, it’s also about ensuring that we respect and make the best use of the animals we rear. While the meat we produce goes to retail or food service businesses, we always seek to maximise value from every single element of the animal. We are constantly monitoring the market and the evolving technologies and processes available to make sure we’re achieving that, for example by exploring different cuts of meat. We we are always looking to deliver great value for our customers, but approach is not about making a quick buck, it’s about creating long-term sustainable solutions and working

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

with strategic partners to remove waste from our activities.

every year

We redistribute any surplus food that is still of a high quality but might be in slightly damaged packaging, for example, to local community organisations. Working with redistribution partners FareShare and Company Shop Group, we redistributed more than 1.3 million meal equivalents during 2022.

We redistributed more than

Ten years ago, material like this might have gone into landfill, but now we are a zero waste to landfill business.

meal equivalents during 2022

It’s all about making the best use of what we’ve got. And that extends to all other materials we use. All our packaging will be widely recyclable by 2025, which you can read about in more detail in the Sustainable Packaging chapter of this report, and we work closely with Biffa to ensure the responsible management of our waste materials.

and a

50%

1.3

million

reduction in food waste by 2023

Sustainable Food Production

Introduction | Sites and Centres of Operational Excellence | The Components of Pilgrim’s UK Net Zero Pathway | Sustainable Food Production Pledge

Everyone doing their bit for biodiversity Our Linton Added Value Facility

Our site teams play a huge part in helping to mitigate our environmental impact, from projects including upcycling bird boxes, to making bug hotels and rewilding initiatives. Our team in Linton is currently involved in a science project in partnership with Cambridge University’s Department of Zoology, to study honeybee and bumblebee health and behaviour. As part of this, they are collecting pollen every couple of weeks for university analysis to establish what plants the bees are feeding on and to check for chemical residues in the pollen.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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In Linton, the team has prepared an area for a wildflower garden and staff have been trained as beekeepers. Two members of the team on-site are now certified members of the British Beekeepers Association. The team in Bodmin has reclaimed the nearby water field, which will now be seeded to grass, with mowed walkways for local residents to enjoy. Ultimately, everyone has their part to play, whether its switching off the lights, turning off the tap, or taking some of the bigger steps we’ve outlined. Crucially, everything we do is supported by a robust investment programme and a culture where colleagues constantly consider sustainability in everything they do, to optimise and innovate our sustainable food production.

Sustainable Food Production

Introduction | Sites and Centres of Operational Excellence | The Components of Pilgrim’s UK Net Zero Pathway | Sustainable Food Production Pledge

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Food Production Pledge Pledge/objective

Key date

Net Zero across our own operations (Scope 1&2) by 2030.

2030

Status

Commentary

Next Year- 2023

On Track

62.5% reduction in Total Scope 1&2 Market-based emissions from 20192022. 24.3% reduction in Total Scope 1&2 Location-based emissions from 2019-2022. Reductions delivered through behaviour change programmes, GHG reduction investment projects, procurement of renewable electricity and rationalising our operational footprint.

In 2023, complete Net Zero investment roadmaps for all sites, continue with our GHG investment programme, and continue to integrate GHG reduction behavioural efficiency programme into our operational excellence processes.

Net Zero across our entire value chain by 2035 (Scope 3).

2035

On Track

Pilgrim’s UK continued to produce an Continue R&D programmes into Scope annual GHG inventory. Between 2019 and 3 emission reduction opportunities, 2022, Pilgrim’s UK achieved a 9% reduction with priority focus areas in agriculture, in total Scope 3 emissions. packaging and transport.

50% reduction in water intensity by 2030.

2030

On Track

From our baseline in 2019 to 2022, we have Identify further opportunities for efficiency achieved a 13.5% reduction in our water projects. Explore viability of water use intensity. recycling plants for processing sites.

Achieved

Maintain current food loss and waste levels across our operations and support our supply chains with reducing food waste in the home.

Maintain 0.1% food waste of % total production.

100% of the electricity we use is sourced from renewable energy sources.

Pilgrim’s UK currently has on-site solar PV generation at two of our processing sites. We are progressing with another four installations during 2023.

Reduce edible food loss and waste by 50% by 2030.

Use 100% renewable electricity across all our production facilities

In 2022, we had zero product recalls.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

2030

Each Year

Achieved

100%

of our team members are Global food safety & quality assured.

100%

of the electricity we use is sourced from renewable energy sources.

Pilgrim’s UK had 2314 service providers and vendors in 2022.

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Sustainable Products

Driving Innovation > Sustainable and Affordable > Forever, Not a Fad > Sustainable Products Pledge >

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainable Products

Driving Innovation | Sustainable and Affordable | Forever, not a Fad | Sustainable Products Pledge

Driving Innovation At each of our sites we have development kitchens where our teams of chefs, innovation managers and product technicians are constantly at work, creating delicious and sustainable new dishes. Our product development function is fundamental to how Pilgrim’s UK and the retailers we supply drive our shared sustainability agendas. So, we work closely with our retail partners to develop bespoke products that fit with their strategies, but we also give our teams the freedom to think creatively and experiment without constraint. That means getting out there to be inspired by what other food producers and chefs are doing, so we know where food trends are heading, and can build our long-term innovation plan accordingly. That’s important because we’re typically working to create products that won’t hit the shelves for up to three years. New and exciting products that we’ve added to our portfolio and that have hit the shelves in the last 12 months included katsu breaded pork medallions for Tesco, Mexican-inspired pork al pastor for Waitrose, slow-cooked hog roast with crackling and apple sauce for Co-op and maple pork shoulder for Aldi. Pilgrim’s UK 2030: Sustainability Strategy Progress Report

And our innovative ideas continue to attract the industry’s attention. In the last year we’ve won a raft of industry awards for our products, taking home trophies including two Olive Magazine Christmas Supermarket Taste Awards and a BBC Good Food Award. Of course, sustainability plays into the product development process, and it has always been a fundamental strength of ours because we’ve worked to nurture an integrated supply of higher welfare pork and an independent lamb supply chain. That all starts at the source, and we always ensure all our suppliers share our sustainability values, as laid out in our Supplier Code of Conduct.

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Sustainable Products

Driving Innovation | Sustainable and Affordable | Forever, not a Fad | Sustainable Products Pledge

Sustainable and Affordable Consumers have been a big driver in the industry’s shift to sustainability, but affordability is especially important in a cost-ofliving crisis, which is undoubtedly having an impact on the kinds of products consumers are demanding. We know that a large majority want to do the right thing and buy higher welfare, healthy sustainable food, but they can’t necessarily pay a premium for that at a time when elevated inflation means everything is getting more expensive. That’s why we’re working to broaden our proposition and help more consumers make sustainable purchasing decisions.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

And we’re pioneering the use of different cuts of meat, to make sure we’re utilising the whole animal so nothing goes to waste. These products are more affordable, higher welfare and more sustainable alternatives than other comparable proteins.

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Sustainable Products

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Driving Innovation | Sustainable and Affordable | Forever, not a Fad | Sustainable Products Pledge

Forever, Not a Fad Much like during the 2008 recession, people are cutting back by not eating out as much, and cooking more at home instead. But they are still buying premium sausages, for example, because that’s still a cheaper alternative than eating in a restaurant. At the same time, while in recent years consumers have been pressured to eat less meat for a range of reasons, which could be linked to health, animal welfare or sustainability, the vast majority of people continue to eat and enjoy meat. Indeed, many plant-based products are more expensive than meat products, and there’s a growing awareness that some plant-based products are actually highly processed, so may not be the healthy choices they appear to be.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

In contrast, lean pork products like loin medallions and trimmed fillets are naturally low in fat, saturated fat and salt, and rich in protein and essential vitamins and minerals. So, we’re supporting consumers’ healthy choices by providing healthier options like reduced and no salt bacon. And, when consumers do eat meat, they want it to be the best it can be: high quality, higher welfare, healthy and sustainable. While we work hard to respond to shifting consumer demand, for Pilgrim’s UK, sustainability is not a trend. Rather, it’s non-negotiable and we continue to work to ensure it is ingrained within everything we do across our supply chains.

Sustainable Products

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Driving Innovation | Sustainable and Affordable | Forever, not a Fad | Sustainable Products Pledge

Sustainable Products Pledge Pledge/objective Complete Life Cycle Assessments (LCAs) for all product SKUs looking at categories such as GHG emissions, land use, water use and risky, among many others.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Key date

Status

Commentary

2025

Pilgrim’s UK conducted review of LCA Opportunity providers and tools. No full product SKUs Area were undertaken in 2022.

Next Year- 2023 In 2023 Pilgrim’s UK became a member of the Mondra BRC coalition, seeking to establish a sector-wide programme to harmonise product footprinting.

Contents

Sustainable Packaging > Monitoring and Measurement > Sustainable Packaging Pledge >

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainable Packaging

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Sustainable Packaging | Monitoring and Measurement | Sustainable Packaging Pledge

Sustainable Packaging

Evolving the way we package our products plays a big part in the progress we are making to achieve our sustainability goals. Our Head of Packaging’s role is to drive innovation in this space to help us accelerate our progress towards our overarching sustainability ambitions – without compromising on delivering an excellent experience for our customer and consumers. To ensure we’re on the right track, we’re working towards a set of ambitious strategic goals for 2025. We’re making good progress, and – in some cases – we’re closing in on our targets.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

We’ll use 100% recyclable or reusable plastic packaging by 2025 As of 2023, this figure now sits at 92.7%, and we’re working hard to tackle that final eight per cent ahead of the deadline, working alongside our customers and developing and trialling new innovations to help us close the gap.

We’ll only use cardboard from sustainable sources In 2021, we managed to achieve this target – all the paper and card we use in our products has a Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC) or legally traceable certification.

We’ll use plastics created from at least 30% recycled content As of 2023, we’re now delivering against this target owing to the increase in the amount of recycled rPET we’re using. Most of our products are now packaged in materials made from 80% or more recycled content.

Sustainable Packaging

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Sustainable Packaging | Monitoring and Measurement | Sustainable Packaging Pledge

Monitoring and Measurement A big task, but a vital one As one of the largest food businesses in the UK, we use millions of pieces of packaging in the process of transporting our products to shelves and ensuring they are in excellent condition when they reach our customers. In the past 12 months, we have placed a major focus on the way we monitor and measure the environmental impact of the packaging we use. As part of this, we have implemented a new analytics platform that gives us absolute clarity on everything that goes into it. We have also started working with a database platform, which allows us to carry out lifecycle assessments on our packaging in terms of how much greenhouse gas (GHG) emissions they will contribute to. We can also review other categories as part of this, like land use and water use.

As well as giving us an accurate picture of the true GHG cost of our current packaging, it’s also an invaluable design tool as we develop new products, providing us with a full picture of the environmental impact any given decision will have.

Beyond 2025 Now that we’re well on track to hit our 2025 goals, we’re in the process of setting out our longer-term ambitions. We’ll continue to closely monitor our environmental impact and invest in implementing improved designs and research in this area, with innovation at the forefront of everything we do.

In the past 12 months, we have placed a major focus on the way we monitor and measure the environmental impact of the packaging we use. Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainable Packaging

Sustainable Packaging | Monitoring and Measurement | Sustainable Packaging Pledge

Green by Design Everyone is aware that we’re facing a costof-living crisis as a nation, so we’re focused on ensuring we’re delivering the best possible value to customers and consumers. However, that doesn’t mean that we’re going to stop working towards our sustainability goals – only that there is a greater emphasis on innovation to make gains without increasing costs. With that in mind, the past 12 months have seen us innovate our packaging design in a couple of key areas.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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First is a new tray design we have developed that uses a clever dimpled design on the bottom that uses the surface tension of liquid to retain moisture, removing the need for the absorbent pad that appears in many fresh meat packages. While we’re still in the process of trialing the new design, it has been well received by customers and there is potential for it to be rolled out across all of our trays in the years ahead, a move that would remove 39 million pads annually.

We’ve also increased the amount of Recycled Polyethylene Terephthalate (rPET) we use in our trays. As well as being made from recycled content, it can also be recycled at the end of its life, making it is much more sustainable as a material compared with many commonly used alternatives.

Sustainable Packaging

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Sustainable Packaging | Monitoring and Measurement | Sustainable Packaging Pledge

Sustainable Packaging Pledge Pledge/objective

By 2025 use 100% recyclable, or reusable plastic packaging.

Key date

2025

Status

On Track

Commentary

Next Year- 2023

In 2022, we tracked and moved as much of our material from non-recyclable to recyclable as possible. So far, we have achieved a recyclability rate of 92.8% for our packaging.

We are members of The UK Plastics Pact and have pledged that by 2025 we intend to eliminate problematic or unnecessary single-use packaging through redesign, innovation or alternative (reuse) delivery model. 100% of plastics packaging to be reusable, recyclable or compostable. 70% of plastics packaging effectively recycled or composted. 30% average recycled content across all plastic packaging.

To date at Pilgrim’s UK, we have an average recycled content in plastics of 40.2%.

By 2025 a minimum of 30% average recycled content in plastics.

2025

Achieved

All board to be sustainably sourced.

2025

Achieved

From the end of 2022 100% of board and wood-based materials in Pilgrim's UK has been sourced from sustainable sources

Using ‘no, less or best plastic’ - Track GHG impact

Ongoing

On Track

Undertake LCAs to assess the GHG impact Continue to undertake LCAs for all key of our plastic packaging across 100% of key priority projects and to evaluate new priority projects. materials.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Contents

Sustainable People & Community Sustainable People and Community > Safety is a Condition > Worker Welfare > Human Rights Impact Assessment and Labour Practices > Modern Slavery Intelligence Network > Bright Future Co-operative > Learning and Development > Compliance > Gender Pay & Diversity > Supporting Mental Health > Engagement Survey > STARS > Supporting our Communities >

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainable People & Community

Contents

Sustainable People and Community As a major player in the UK food industry, we recognise we have a responsibility to lead by example when it comes to supporting our people and communities. We want everyone we work with to be able to share in our success, creating prosperity and providing satisfying, rewarding careers with the chance to gain new skills and progress. We know we don’t have all the answers and so collaboration is hugely important to help us identify opportunities to do business better. That means working with the wider industry to create joined up solutions for the benefit of everyone, driving up standards across the sector.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Delivering business success through our people – and our Enablers

Attraction We easily attract the best people to join our business

Retention Our people are proud to work for and feel part of Pilgrim’s UK

Performance Management Our people know and deliver what is expected from them (and more...) both the what and the how

Success Our people maximise opportunities to learn and perform to their full potential

Reward & Recognition Our people feel valued

Engagement Our people are dedicated and contribute to our success

Sustainable People & Community

Our people form the backbone of our communities – inside and outside of the organisation. They have a vital role to play in maintaining the UK’s food supply chain, keeping supermarket shelves and refrigerators stocked with great tasting, quality products. This is why we were quickly identified as being essential workers during the onset of the COVID-19 pandemic in 2020. We are also one of the largest private sector employers in every area where we have a manufacturing site, providing good employment opportunities and contributing to local economies. We have strong links with local schools, colleges and universities, and all of our sites actively support local good causes.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

At Pilgrim’s UK our vision is to be the best and most respected company in our industry and create the opportunity of a better future for our team members. That’s one reason why we believe it’s so important to have a comprehensive Sustainable People Strategy. Like our company Values, this strategy is owned by the entire business, with established key performance indicators in place to monitor progress and inform where our focus needs to be.

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Sustainable People & Community

Safety is a Condition

Safety at Pilgrim’s UK is not a priority – it’s a condition. ‘Safe people, safe products and healthy attitudes’ is one of our four strategic pillars and is ingrained in our view of sustainability. The safety of our people, our animals, our food and our facilities is integral to how we do business. Safety is always the first agenda item during weekly Executive Team meetings as well as monthly Leadership Team Business Update briefings. Every safety and environmental incident is fully investigated, recorded and root causes addressed.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Sustainable People & Community

Safe people

Food safety

We seek to continuously improve our health and safety performance year-on-year with the aim of proactively ensuring the health, safety and wellbeing of all our team members.

Our sites operate to strict food safety and quality management standards and comply with legal and customer standards.

To help us get there, we’ve launched a number of initiatives and improved existing ones. Our health and safety management systems ensure that the entire business follows uniform procedures for handling health and safety issues and continuously improves the working environment. Our policies clearly define who at each operational site has responsibilities for compliance with each identified risk. Our key business measures of the safety of our team members are: severe accidents, which saw a 70% reduction in 2022 compared to the previous year as well as eight months with zero severe injuries; lost time accidents, which saw a 26% decrease compared to 2021, and Days Away, Restricted or Transferred (DART), which beat our target of 0.89.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

As part of this, they are subject to independent, unannounced audits and are all certificated to the globally-recognised BRC food safety accreditation standard. All staff undergo food safety and hygiene training when they join the company and they have the opportunity for ongoing training relevant to their work role. Ongoing compliance with our mandatory training programmes is measured across all sites. We have a comprehensive set of Key Performance Indicators (KPIs) to measure site performance against a wide range of food safety, hygiene and quality parameters which are amalgamated into our Food Safety and Quality Index (FSQI) benchmark. Each site is expected to achieve a minimum score of 90% every month. The Group target is 100% of sites with a ≥ 90% score.

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Sustainable People & Community

Contents

Worker Welfare

We’re working hard to reverse some of the perceptions of the meat industry, particular when it comes to the ethical treatment of the people it employs. Even today, there are those that seek to exploit vulnerable workers. This is unacceptable to Pilgrim’s UK, which is why we work hard to strive for the highest standards, not just in our own business, but throughout the industry. It’s why we have conducted a Human Rights Impact Assessment of our integrated pork and lamb supply networks to help create a fully transparent supply chain - the first such assessment in our industry. Working with leading retailers, we’re developing an even deeper understanding of how our business practices are

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

affecting farmers, workers and other stakeholders working in the pig and lamb supply chains, and taking action to mitigate, prevent or remediate any identified impacts. We will be publishing our action plan on our website and working across the food supply chain to drive improvement. We’re also founding board members of the Food Network for Ethical Trade (FNET) and the Modern Slavery Intelligence Network (MSIN). The primary aim of FNET is to collaborate, share and support each other to develop robust due diligence processes to identify and act on human rights issues for workers in food supply chains. Members co-create tools, share information and work together to address problems as they arise.

We have conducted a Human Rights Impact Assessment of our integrated pork and lamb supply networks to help create a fully transparent supply chain

Sustainable People & Community

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Human Rights Impact Assessment and Labour Practices Pilgrim’s UK, alongside its retail partners Waitrose and Co-op, has conducted a first-of-its-kind human rights impact assessment (HRIA) of its integrated pork and lamb supply chains. The assessment spanned Pilgrim’s UK’s outdoor-bred pig farms and lamb farms, as well as the business’ processing and abattoir sites, from which Co-op and Waitrose source the majority of their pork and all of Waitrose’s lamb products. The assessment covered the period between October 2021 to February 2022, during which the UK pork industry faced the most severe challenges

in its history, with labour shortages and the end of the Covid-19 pandemic being among factors that led to a significant backlog of pigs on farms. Previously, major HRIAs have only focused on high-risk commodity supply chains such as coffee, sugar and cocoa. In response to the findings, the businesses have published a joint Human Rights Action Plan, which is designed to raise awareness among stakeholders along the supply chain of health & safety training, mental health and wellbeing, gender discrimination and access to grievance systems.

“This is a major step towards a fully transparent and ethical supply chain, going beyond compliance. As one of Britain’s largest pork providers, we know it’s our responsibility to set a precedent so that others across the industry might develop similar practices. “We’re committed to raising awareness of workers’ rights and, while the meat industry has historically come up against perception challenges in this area, we want to do all we can to overturn those challenges by going further in understanding our supply chains and supporting workers.” Rachel Baldwin VP – HR, Pilgrim’s UK

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

“We welcome the HRIA report which reflects the challenges faced by workers in two modern agricultural supply chains. The report’s findings clearly demonstrate the importance of care, vigilance and a culture of continuous improvement in training and monitoring as reflected in the Action Plan. “Even though we have strong and close relationships with our farmers and suppliers and are proud of our standards, we believe that the food and farming industries should be prepared to regularly submit themselves to scrutiny to ensure the safety and wellbeing of all stakeholders.” John Gregson Ethics and Sustainability Advisor Waitrose

Sustainable People & Community

We are members of Slave Free Alliance, which is part of the charity Hope for Justice.

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Like many big food companies, a number of our valued colleagues come from overseas, and we also create many temporary worker roles for agency workers at peak times. We make sure they are all fully aware of their rights to ensure there is no exploitation in the recruitment process. We also work with the Modern Slavery Intelligence Network (MSIN), working to investigate and gather evidence of worker exploitation in our communities. We then share our intelligence with law enforcement, helping free people from the misery of exploitation and giving them their lives back. Pilgrim’s UK supports the United Nations Guiding Principles on Human Rights and we are proud to be members of the UN Global Compact. Through our Ethical and Human Rights Policy, Modern Slavery Policy and Supplier Code of Conduct, as well as working in collaboration with other suppliers and customers, we aim to implement these principles within our business and throughout our wider supply chain. We also map all of our sites and our supplier sites in the Sedex platform and all of our sites are subject to a third-party independent ethical audit at least every two years. During 2022, eight of our sites underwent a SMETA (Sedex Members Ethical Trade) audit. SMETA is the most common standard of ethical audits. This is based on the ETI Base Code and relevant ILO (International Labour Organisation) core conventions. Once completed, the audit results and action plan are shared with our customers. We are members of Slave Free Alliance, which is part of the charity Hope for Justice. The charity exists to support victims of Modern slavery and to help businesses focus their policies, procedures and work in this area to be victim centric.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainable People & Community

Sustainable People and Community: internal and external policies We mitigate the risk of modern slavery and human trafficking within our organisation through the policies and procedures we have in place, and through raising awareness of the issue among our employees – and equipping them with the skills to spot and identify any potential risks. Ethical and Human Rights Policy This policy covers the standards we expect to be in place within our own sites regarding ethical and human rights standards. This is monitored via our own internal audits and external third-party audits. Modern Slavery Policy This policy covers the commitment to tackling Modern Slavery and the way we approach this within the business. Whistleblowing Policy This policy enables staff to report any concerns confidentially without any fear of reprisals.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Code of Conduct This covers the values and behaviours we expect from all employees. Supplier Code of Conduct This covers the minimum requirements we expect from all suppliers to Pilgrim’s UK. It reflects our commitments to the UN Global Compact and ETI Base Code, and to the Gang Master Licensing Standard and Modern Slavery Act where relevant. Standard Contract Terms and Conditions This covers our standard trading terms with all suppliers. It reflects our minimum requirements around access, audit and working together to tackle issues with people in our supply chain.

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Sustainable People & Community

Sedex Sedex is a not-for-profit member organisation covering suppliers and retailers across the world. It provides an online platform for members to manage and improve working conditions within their sites and their wider supply chains. It provides tools, services and resources to help members working towards a more responsible supply chain. Sedex also helps with transparency of supply chains by linking them with customers and providing visibility of working conditions. At Pilgrim’s UK we host SMETA ethical audits at all our sites every two years. A number of our sites have additional ethical audits in place in line with their customers specific requirements. In 2022, eight of our own sites undertook an audit and 65% of our supplier sites have a valid audit in place. All suppliers of raw materials, ingredients and packaging with over 30 employees must be linked with us on SEDEX and share results of their audits with us.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Gangmasters and Labour Abuse Authority Good practices embedded within all Pilgrim’s UK sites include our connection to the GLAA (Gangmasters and Labour Abuse Authority). We have strong working relationships with the GLAA, a non-departmental public body governed by an independent board to protect vulnerable and exploited workers. It is responsible for the licensing of labour providers within the food and agricultural sectors in the UK and works with the police and other agencies to investigate and prosecute cases of modern slavery and exploitation. Our Human Rights Manager sits on the Labour Providers and Users Advisory Board, which works to implement best practice and learnings within the industry.

Sustainable People & Community

Stronger Together We’re also part of Stronger Together, a multi-stakeholder business-led initiative which aims to reduce modern slavery and exploitation of workers, by providing guidance, training and resources to workers, labour providers and employers.

Key activities in 2022:

Stronger Together awareness raised at all employee inductions

Stronger Together deeper training carried out by all site HR staff

Bespoke training completed by all Supervisors and Line Managers

Posters displayed on all sites in multiple languages

Checks carried out on addresses and bank accounts by payroll staff at start of contract

Independent third-party whistle blowing hotline available in multiple languages

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Sustainable People & Community

Association of Labour Providers Association of Labour Providers (ALP) is a is a not-for-profit trade organisation which promotes responsible recruitment and good practice across the food supply chain. The ALP actively influences government and regulatory policy and provides a range of resources and advice to members. We are active associate members of the ALP and have previously hosted training events and seminars at our sites and staff across the Group have attended.

Employment Agencies Our Human Resources team conducts an annual agency internal audit which includes interviews with workers selected at random, as well as an annual internal audit of any contractors based at our sites. Annual second and third-party audits of agency providers are also conducted, with one randomly selected second tier agency. We have a close working relationship with the compliance teams within our labour agencies and a strong working relationship

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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with the GLAA, with whom we’ve been working together to solve issues on a practical basis and remediate where required.

Whistleblowing We have a whistleblowing hotline available to all stakeholders within the business, including supply chain colleagues and local communities. It can also be accessed via a freephone helpline number. This is managed on our behalf by an independent third party, Navex Global. We run awareness raising campaigns to encourage any issues to be reported to the helpline and training is given during inductions. Concerns can be raised on any area of the business operation including modern slavery and labour exploitation. All reports are investigated fully are also reported back to the original reporter confidentially. All investigation results are subject to further internal checks by a separate legal team.

Sustainable People & Community

Employee Representation The business actively promotes and supports employee engagement and our team members have elected representation in place at all of our sites, either through Employee Forums and/or Trade Unions. All of our team members are expected to work with integrity and respect for each other, and new starters will receive Dignity at Work training as part of their induction. All employees receive training in the Pilgrim’s UK core Values of Determination, Simplicity, Availability, Humility, Sincerity, Discipline and Ownership. We have further mandatory training for all supervisors and managers in how to spot the signs of modern slavery and what they should do.

Annual surveys of employees and action plans are developed to implement any required changes as a result of any incidents. Concerns for workers welfare were raised at four of our sites during the year. All of these were fully investigated by our Human Rights Manager. This was often carried out in partnership with the relevant labour provider for the site. A number of workers and management were interviewed during this process. No major issues were uncovered and any initial concerns were cleared.

Announced Worker Welfare Audits We have continued our programme of unannounced worker welfare visits this year with 14 visits taking place at our sites. We have also created a policy and process document and standard

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

for carrying out worker welfare visits across the business. We interviewed random samples of workers, both agency and our own staff, to check on ethical and working standards, and to ensure ethical/human rights and modern slavery policies and procedures were being correctly followed. We also use this as a check on their welfare, treatment and working conditions. Over 350 workers were spoken to during this process and no serious issues of exploitation or modern slavery were uncovered. We will continue to run this programme at all of our sites on at least an annual basis – and more regularly if concerns are raised via intelligence or reporting on our whistle-blowing line.

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Sustainable People & Community

Supplier Due Diligence We expect all our suppliers to follow our Supplier Code of Conduct. This covers labour and human rights. We also work with our key suppliers to support them in their work in this area. We risk assess all our raw materials, ingredients and packaging suppliers before they are set up. All suppliers who employ over 30 people are required to be members of Sedex and link their sites to Pilgrim’s UK. We also expect them to have a third party audit every two years and share the results with us. Also detailed in our standard terms and conditions are requirements regarding compliance to our policy and the Modern Slavery Act 2015 and the requirement to share their Modern Slavery Statements with Pilgrim’s UK.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Slave Free Alliance We have continued to implement training developed with Slave Free Alliance designed to support our Agricultural Team and our wider farming community. We also use this training for first line supervisors and managers as part of our regular training and onboarding. Work that was planned to develop a Modern Slavery Victim Support Framework was postponed during 2022 due to operational requirements, and this will be developed alongside rigorous training for colleagues during 2023.

Stronger Together Reporting Tool This is an online self-assessment tool that enables companies to track their progress in tackling modern slavery and labour exploitation and to highlight the next steps for the company and their supply chain. We have increased our score from 84% to 86% during 2022, as part of our continuous improvement.

Mystery Shopper Programme We are currently working to develop a “mystery shopper” programme to test all stages of the recruitment journey, working with a specialist contractor, one of our key labour agencies and

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the GLAA. This will be to test the robustness and effectiveness of the processes and procedures in place, designed to establish any red flags in relation to labour exploitation and potential cases of modern slavery. This initiative was put on hold during 2022 due to the tender process of our agency labour provision.

Farms We have continued to work with our farmers on their processes and procedures around modern slavery and to improve visibility of the topic within our farming community. Our whistleblowing line is now available to all within our integrated farming operation and other interested community stakeholders to report any issues. We have been raising awareness of the topic through articles in our farmer newsletter and continue to roll out the training we developed for our farming network, as well as for new agricultural staff who support our farmers. FCN also joined Pilgrim’s UK at the Royal Welsh Show in 2022 to help raise awareness of people welfare amongst the lamb farming community.

Sustainable People & Community

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Modern Slavery Intelligence Network

Pilgrim’s UK is a founding member of The Modern Slavery Intelligence Network (MSIN) – a pioneering non-profit collaboration in the UK food and agriculture sector created in response to the findings of Operation Fort, the UK’s largest ever modern slavery investigation. Founded in 2020, The Modern Slavery Intelligence Network (MSIN) consists of 14 member companies, including retailers, manufacturers and processors. The organisation was developed as an intelligencesharing mechanism to enhance effectiveness in combatting modern slavery and labour exploitation within the UK. Information generated by the network is used to detect, prevent and disrupt modern

slavery and labour exploitation activity in the industry, protecting workers and improving outcomes for those directly impacted. During the first year of operation, members have finalised and established the systems, guidance and legal structures which underpin the Network. Stop the Traffik was formally appointed as the data sharing partner and analyst for the network, and the MSIN intelligence sharing platform was established and launched alongside this. Sharing of real intelligence commenced in March, and in 2022 has been used for all of its intended functions – highlighting where intelligence input to the secure database relates to a shared case, adding value to member input, and the production of shared intelligence, alerts and trend reports.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Key Achievements & Outputs of MSIN in 2022 Formal launch of MSIN at a conference in June 2022 attended by more than 200 representatives in the food processing, farming and horticulture industry, as well as NGO and law enforcement. Finalising documents underpinning the incorporation of MSIN as a legal entity – covering data sharing and confidentiality, membership agreements and governance. Formal appointment of STOP THE TRAFFIK as data sharing partner and analyst. Launch of the MSIN/STOP THE TRAFFIK data sharing platform in March 2022 and input by members of live data. The finalisation of processes governing membership expansion, including formal expectations for new members to be approved. Approval of graded membership fees. The use of the MSIN platform for all of its intended functions – highlighting where securely input intelligence relates to a shared case, adding value to members regarding their input, and the production of shared intelligence, alerts and trend reports.

Sustainable People & Community

Bright Future Co-operative Pilgrim’s UK wants to give everyone the opportunity to build a successful and satisfying career, whatever their background might be. We are proud business partners and founding members of the Bright Future Co-operative. This enables victims of modern slavery to return to work via a paid four-week placement followed by a non-competitive interview for a permanent role. This is an independent co-operative, consisting of businesses and charity partners, founded with the sole aim of turning victims of modern slavery into survivors through paid employment placements, leading to full-time employment. Our Human Rights Manager is an elected board member representing the business. We’ve seen first-hand the transformative impact Bright Future can have, taking people who have been the victims of modern slavery and exploitation, equipping them with new work and language skills and watching them grow where they are appreciated. We provide a safe work environment and a culture where people feel valued, trust each other and have the opportunity to develop and thrive. We have developed site guides and role descriptions for all of our sites to encourage more placements through the Bright Future programme as it scales up.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Sustainable People & Community

Case study We hear a lot of survivors’ stories and believe it is important to share these stories to encourage others who might be in a similar situation to get the help they need. We have changed the names of everyone in this story to protect the survivor. Peter is originally from the Czech Republic and like most men his age he enjoyed his job. However, in the late 1990s his place of work was forced to shut down and he was laid off. At this time, he met a charismatic man in his local town, called Adam, who boasted about life in the UK and all that comes with it – stability, better money and better homes. Adam said that he could help Peter get set up and find work, to give him a better life, which he would not have been able to achieve on his current salary. Initially, this didn’t appeal to Peter, but after a tragic turn of events when his mum sadly passed away Peter wanted a fresh start, so he reached back out to Adam, who was quick to help. He told Peter to pack a bag as they would be driving all the way to the UK. This gave Peter a huge sense of adventure – a new country, a new job and a new home – leaving his old life and troubles behind him. At first, he came to a major city where he was taken to a large flat and given his own room. Adam then took all of Peter’s documents and ID to supposedly create a bank account in his name, but never gave him the card or his documents and ID back. Peter was told this was normal and that it was for his own security and benefit.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Soon, Peter started his first job at a farm picking fruit. He worked for two weeks and while everyone else was earning around £240 per week, he was only given £30 per week. Adam explained that Peter must pay off his travel and set-up costs first. Upon clearing those, he was told he would be back on the normal rate. Again, Peter felt this was only fair and wanted to honour his debts. Soon after, one of Adam’s associates claimed to have landed Peter a new and better job, with more pay. He felt his luck was finally changing and all his hard work was paying off. But he soon realised he was still receiving a lower wage than his colleagues. His protest was met with physical violence, something which continued for some time. He was so fearful of the authorities so he kept his head down and suffered in silence. Eventually, Peter took action and he opened up to the police who helped him to a safe house and introduced him to Causeway, a charity which supports survivors of modern slavery to get immediate help, including accommodation, hot food, clothing and more. Soon after, the charity put him in touch with Bright Futures, a co-operative of business and charity partners, which helps survivors find work and star a new live. The charity found him a job at Pilgrim’s UK and then after a four-week work placement, we was taken on as a full-time employee.

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Sustainable People & Community

Learning and Development Our development opportunities and resources help our team members through mastering the basics to success and beyond. We work hard to create opportunities for a better future for our team. Every aspect of learning is provided, from on-boarding, compliance, health & safety and food safety training, right up to management and leadership training which can be underpinned with a qualification at every level. Our early careers Apprentice Programme attracts and develops talent in much needed areas such as engineering, technical and butchery. Our bespoke Leadership Trainee Programme which has seen many people become great leaders, while our new Butchery Academy aims to tackle labour shortages in the industry.

University of Pilgrim’s Today’s leaders know that timely and relevant employee training and development programmes improves business performance, supports employee retention, increases efficiency and reduces risk. The University of Pilgrim’s is a learning management system that enables the

company to share critical knowledge with our employees, such as legal mandatory training and personal development courses, at any time and on any device. This empowers employees to perform at their best, increasing customer engagement and loyalty, and deepening commitment and contribution from the wider business. The University of Pilgrim’s is mobile and tablet friendly, which means team members can focus on their own development whenever and wherever they choose with fast access. Learners may work at their own speed, and courses are flexible enough that employees can dip in and out of them as time allows. New courses are added every month in critical subject areas and the library is updated automatically to ensure content stays up-todate. The library also includes resources such as workbooks, infographics, fact sheets, and handouts to save even more time and help colleagues deliver an engaging learning experience. Content is always changing, up to date, fresh, and entertaining, and is tailored to each learner’s unique development plan.

Pilgrim’s UK courses include: Compliance Health & Safety Leadership & Management Business Skills Customer Service IT & Project Management Wellbeing

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Sustainable People & Community

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Learning and Development: Championing Diversity Looking at learning and development opportunities, we launched our Level 3 and Level 5 Leadership Qualifications in 2022, with female participation making up 46% and 40% of total attendance, respectively.

247 internal promotions 132

115

In addition, we made 247 internal promotions during the reporting year, of which 115 were offered to female employees, increasing the amount and proportion compared with the previous year. Pilgrim’s UK continues to play an active role in industry events, becoming a major partner in Diversity & Inclusion in Grocery, as part of accelerating and widening the focus on our Diversity & Inclusion Strategy. We maintained our role as a strategic partner of Meat Business Women, participating in various masterclasses, the yearly Meat Business Women conference, aand #thepowerofyou campaigns. We also continued our sponsorship of the Women in Meat Awards, which also aims to build awareness of and celebrate the contribution of women to the meat manufacturing industry. We are also an active participant, with four finalists across three categories, including winning the Meat Businesswoman Award – Manufacturing/Processing.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainable People & Community

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Apprentice Programmes:

Butchery Apprenticeship programme

Technical Apprenticeship programme

Engineering Apprenticeship programme

Operational Leadership Trainee Programme Our Leadership Trainee Programme is aimed at people with a passion for food plus the ambition, initiative, motivation and drive to succeed in a fast-paced food production business. This programme offers candidates a bespoke one-year course which is tailored to the functional area of the business they intend to pursue a career in, whether it be Operations, Finance, New Product Development or another of the many other specialist areas or roles available within the organisation. It is aimed at ambitious individuals who aspire to be future managers and directors, and become part of the business’ leadership structure.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Apprenticeship Programmes Our award-winning apprenticeships encourage development and progression opportunities with bespoke on the job training, unrivalled support and top-class training. Our programmes are designed for anyone who is looking to kick-start their career in food manufacturing while earning and learning! We offer competitive salaries, a residential Welcome Week at an outdoor-activity centre, extensive support and top-class training and learning opportunities beyond the apprenticeship itself.

Upskilling apprenticeship programme This apprenticeship programme stands apart from our early years offerings for butchery, engineering and technical, and is open to people of any age. Individuals can achieve qualifications ranging from Level 2 up to Level 7. Helping to close the skills gap within the organisation, its structure is very similar to our early careers programmes with 80% of learning taking place ‘on the job’, to allow participants the opportunity to use real-life experiences and learnings to build a portfolio, underpinning their qualification with a deep practical understanding.

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“We’re committed to providing training and employment opportunities as a business, which is why we’re being proactive in putting programmes like this in place. Labour shortages continue to put a strain on the sector, so we hope that these initiatives will go some way in helping to attract recruits into our industry.” Rachel Baldwin, Vice President, Human Resources

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Butchery Academy Pilgrim’s UK launched its own Butchery & Abattoir Academy in 2022 to support the recruitment of new talent into the industry and creating dedicated facilities at its sites. In light of the well-publicised labour challenges facing the food and farming sector, Pilgrim’s UK invested in the programme to support skills development in UK based workers and open up new opportunities for people to develop a career in the sector. Open to any UK-based applicants, aspiring butchers complete a Level 2 Butchery and Abattoir apprenticeship with the business’s training provider, Bishop Burton College. Each new recruit is trained to a high standard, involving a mixture of classroom learning and working with the experienced on-site team.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainable People & Community

Compliance A robust Compliance Programme provides an ethical and legal framework, helping to ensure the business is operating in the right way. It forms part of the foundations for how we do business and underpins our organsiational values. The following elements form part of Pilgrim’s UK overall compliance programme: Annual training cycles for targeted employees: targeted employees received anti-corruption e-learning training from 2020 onwards; Reviewing and updating the Code of Conduct and Ethics applicable to employees;

The following activity is underway:

Implementation of an updated supplier on-boarding due diligence process in which suppliers will be asked to provide details of any allegations, investigations or charges relating to fraud, forgery, bribery, corruption, money laundering, tax evasion or other related activities. Implementation of a third-party due diligence process using Global Corruptions Perceptions Index and further screening of high risk third parties.

Training of all employees on Code of Conduct and Ethics; Anti-bribery and Corruption Policy; Gifts and Hospitality Approval Procedures; Automated Gifts and Hospitality Approval Process launched in 2021; Training on reporting of Gifts and Hospitality; Due diligence checks on high risk third parties; Ad hoc review and monitoring of internal control processes

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Implementation of anti-bribery and corruption e-learning training for high risk third parties.

Sustainable People & Community

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Anti-bribery

This addresses:

Risk assessment is the foundation for the design of an effective anti-bribery programme. It is a continuing procedure which gives a company a systematic and prioritised view of where the significant inherent bribery risks lie.

human rights

The results of risk assessments are used to design the controls to mitigate the prioritised bribery risks.

employment practices

Where funds and priorities are diverted to activities that will benefit corrupt individuals, fair competition is undermined.

Supplier Code of Conduct As part of our efforts to minimise social and environmental impacts in the supply chain, Pilgrim’s UK has adopted a Supplier Code of Conduct.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

forced labour freedom of association and collective bargaining minimum age for employment equal employment opportunity health and safety environmental issues business integrity (inc. anti-corruption and bribery) Suppliers are required to comply with Pilgrim’s UK Supplier Code of Conduct under standard terms and conditions of supply.

725 In 2022

employees completed anti-corruption training...

...representing %

of those eligbile

Sustainable People & Community

Gender Pay & Diversity Overall, Pilgrim’s UK saw a positive improvement in the average pay gap between men and women, which has seen a reduction from 10% in 2021 to 9% in 2022. We also continue to remain lower than the UK average of 15%, which has remained unchanged compared to the previous year, as well as the industry average of 16%. The gender split in the business has become slightly more balanced, with the total workforce made up of 3318 men and 1738 women, which represents a 66% vs 34% split, compared to 68% men and 32% women in the previous reporting year. The Pilgrim’s UK Executive Team is made up of 82% males and 18% females, which is the same as the previous year.

Gender split

66%

More employees overall received bonus pay during this reporting year than the last, with 30.4% of men and 22.2% of women benefiting, compared to 24.5% of men and 14.6% of women during the previous year. This means that as well as more women receiving bonus pay than the previous year, the proportion of women receiving bonus pay compared to men also improved. During 2022, Pilgrim’s UK continued to proactively promote an activity programme with the aim of raising awareness of opportunities and support for women in the agriculture and food manufacturing industry.

Executive Team

82%

We have progressed with our aim of attracting diverse talent into what remains a male-dominated industry, and we developed recruitment campaigns appropriately tailored to attract a wider talent pool. We have continued with our career mapping and development plans to support our future planning, to help retain our talent and increase the number of women in senior leadership roles.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

34%

18%

Received bonus

30.4%

22.2%

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Sustainable People & Community

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Supporting Mental Health Pilgrim’s UK believes it has a duty to support team members with their mental health and wellbeing. This is why mental health charity MIND was our headline charity for 2022.

National Stress Awareness Month was our chance to bring attention to the negative impact of stress, promoting the message around managing stress as an essential component of a healthy lifestyle.

Pilgrim’s UK announced its four Mental Health Commitments in September 2022. To support this aim, Pilgrim’s UK has made four Mental Health Commitments, signed by all members of the Executive Team, which set out how we commit to support those facing mental health challenges. The commitment to mental health support was developed by a working group of colleagues from across the business.

In May we highlighted Mental Health Awareness Week. The official theme was ‘loneliness’ and, across the week, we encouraged colleagues to build meaningful connections with friends, family, colleagues and communities.

Throughout the year, employees raised funds and awareness for MIND, including charity sports games, bake sales and general fundraisers.

Men’s Health Week, 13 – 19 June, was a terrific opportunity for the business to bring awareness to health issues that affect men disproportionately, and to encourage male employees to think more about their health and wellbeing. The company also conducted a number of internal campaigns to inform employees about the services offered by MIND.

Create To create an open and inclusive workplace culture which displays respect for those facing mental health challenges

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Identify Equality To promote equality of opportunity and challenge discrimination in the workplace

To identify and provide sources of information and support regarding mental health and wellbeing

Promote To promote equality of opportunity in recruitment and selection for those facing mental health challenges

Sustainable People & Community

The business has also rolled out accredited Mental Health First Aider (MHFAider) courses across all our sites. This two-day course qualifies you as mental health first aider. Just like having a colleague who can help with emergency physical first aid, a MHFAider is similar in the that they are the first responder qualified on site to help when a colleague needs additional support. World Mental Health Day in October was a chance to talk openly about the impact of mental health and how to better manage our own and one another’s wellbeing. We once again, signposted out colleagues to support options. We also offer a fantastic online wellbeing platform that can be accessed at any time, so our people are able to look after their health and wellbeing. We know it’s not always easy to keep on top of physical, emotional and financial matters, so we provide access to Mind, Money, Munch and Move tools – as well as regular articles and videos to help support our teams. We also make sure every employee can have an annual mini health MoT and access to our occupational and employee care counselling and support services.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Our vision is to be the best and most respected company in our industry, and part of that is making sure that we look after our employees in the right way.

In the next year, all managers who lead teams will receive mental health awareness training, so they can spot people who are struggling and provide the best support.

In the last year, we’ve set up a working group to investigate the mental health challenges our colleagues face and how we can best support them.

We’re also signing up colleagues for mental health first aid training, so we have at least one in-house Mental Health First Aider at all of our sites.

In the past, our famers and colleagues in our factories may have held back from opening up about their feelings, even when they were struggling.

And, for people who might not want to talk, we’ve got an online portal where they can find lots of tools, techniques, tips, resources and contacts to help with anything from financial issues to physical and mental health.

We want them to feel that it’s good to talk, whether that’s an issue that you’ve got in work that’s affecting your mental health or it’s something at home that’s affecting your ability to work. So, how can we support our colleagues so they know it’s OK not to be OK and to ask for help? This year we’ve devised The Pilgrim’s UK Mental Health Commitment, which commits us to taking action.

We know life is full of challenges and sometimes people struggle, but we’re working hard to create a culture where everyone can be themselves. We’ve got bigger and better plans coming down the line and I look forward to reporting our progress in next year’s report. Rachel Baldwin VP – HR , Pilgrim’s UK

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“Our business is deeply committed to being a recognised as a good employer and this survey is a strong indicator of how people feel about working for Pilgrim’s UK. While we set ourselves an extremely ambitious engagement score target of 68%, a 5% improvement on last year is a good achievement when you consider most organisations target a 3% year-on-year improvement.” Rachel Baldwin, Vice President, Human Resources

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Engagement Survey Team members across Pilgrim’s UK are feeling more engaged with the business, according to results of the 2022 Employee Engagement Survey. More people than ever before participated in this year’s survey with a response rate of 86% compared to 72% in 2021 and 73% in 2020. Our Glint engagement score comparison across the entire business is 67% and represents a 5% year on year improvement, and is based on two specific questions: would you recommend your company as a great place to work, and; how happy are you working at our company.

Sustainable People & Community

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STARS Pilgrim’s UK’s company values are far more than just espoused principles; they are non-negotiable behaviours which are expected of all team members. To encourage and reward good practice, the business operates a structured reward and recognition programme called Pilgrim’s UK STARS. Standing for Saying Thanks and Recognising Success, there are three tiers of STARS awards in place:

Instant STARS can be awarded by any line manager or manager instantly, and the awardee must have demonstrated an action or behaviour that is underpinned by one of our company Values.

Shining/Rising STAR

Any colleague can nominate a colleague for a quarterly shining or Rising STAR award. Winners are selected by site works councils and leadership teams. Everyone

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

who received an Instant STAR is entered into the quarterly Shining STARS and Rising STAR awards. A rising star is can be a graduate, apprentice, trainee or a more mature employee only just entering into the food manufacturing industry.

Super STARS All Shining/Rising STAR winners are put forward to compete for an annual Super STARS award. Winners and runners-ups are selected by the Pilgrim’s UK Executive Team for each of our seven company Values. All shortlisted candidates are invited to a special annual awards dinner where the winners are announced.

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135 Shining STARS awarded in 2022

Instant STARS awarded in 2022

142 Rising STARS awarded in 2022

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Supporting our Communities Pilgrim’s UK team members across the country have been busy throughout the year supporting national and local good causes. Pilgrim’s UK’s headline charity is MIND and £12,000 was raised for the mental health charity in 2022 through the company’s internal lottery scheme as well as a wide variety of activities held across individual sites. Around £5,000 was also raised for national charities such as Cancer Research UK, SANDS, Breast cancer Now and Scotty’s Little Soldiers, while many of our sites took part in Macmillan Coffee Morning events, raising £1,500 for Macmillan Cancer Support. In addition, a wide range of local good causes have been supported, including multiple air ambulance services, a children’s hospice, a homeless charity and food banks. Community support

National charities supported

Lincolnshire and Nottinghamshire Air Ambulance

MIND

KidsOut

Breast Cancer Now

Cornwall Air Ambulance

SANDS (Stillbirth and Neonatal Death)

Children’s Hospice South West

The Brain Tumour Charity

St Petrocs Homeless Charity

Cancer Research UK

Gwealan Tops Adventure Playground - youth centre

FairShare

Little Harbour Children’s Hospice Waveny Food Bank YANA: You Are Not Alone – Rural Mental Health Support Midlands Air Ambulance Charity Bath Cats & Dogs Home Corsham Church Food Bank

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

£36,000 Total amount raised for charities and good causes in 2022

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Methodology

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Methodology

Reporting scope, boundaries and principles This sustainability report covers the annual calendar year for 2022. Subsequently, all data presented in this report is reflective of this period. In certain instances, some data presented in this report may be either prorated or extrapolated. This report includes data from all legal entities owned and operated by Pilgrim’s UK. In accordance with the operational control approach, a company accounts for 100% of greenhouse gas emissions from operations where it or one of its subsidiaries has operational control. Operational control is determined by majority ownership, and/or specific contractual agreements. All entities acquired or established by Pilgrim’s UK during 2022, are included in the data. Entities divested or wound up are included in the data until the date of divestment or winding up. The Global Reporting Initiative (GRI) standards have been used as a basis for this report.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Pilgrim’s UK acquired lamb supplier Randall Parker Foods in November 2021 to create a new division Pilgrim’s UK Lamb. The full value GHG assessment of the new division is currently underway. Owing to the time taken to integrate business systems and to collect data, the emissions from Pilgrim’s UK Lamb will be included in annual reporting for FY23 onwards, to be published in September 2024.

Methodology of our materiality assessment Pilgrim’s UK as a business unit of Pilgrim’s Pride Corporation and JBS utilise our global materiality assessment published by JBS. Further details of JBS’s materiality assessment, can be found within their latest sustainability report. Moving forwards, at Pilgrim’s UK we strive to continually improve and strengthen our approach, reporting and mitigation of key materiality risks on an annual basis. We aim to meet all our compliance obligations regarding sustainability reporting.

Meeting future legal reporting requirements At Pilgrim’s UK, we recognise the expectations of our customers, consumers and stakeholders when it comes to measuring and reporting on our sustainability progress. To ensure Pilgrim’s UK meets its emission reduction targets for scope 1, 2 and 3. We work in partnership with The Science Based Targets Initiative, The Carbon Trust and Verco following The Greenhouse Gas Protocol guidance. Our approach to data is a constantly evolving and iterative process. We always aim to provide the most reliable and accurate data available.

At Pilgrim’s UK, we strive to continually improve and strengthen our approach, reporting on and mitigating our material risks on an annual basis.

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Methodology

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Indicator overview

Indicator

Unit

2019

2020

2021

2022

Sustainable Farming Animal Welfare

Unit

2019

2020

2021

2022

Pilgrim’s UK Agriculture RSPCA certified

100%

Pilgrim’s UK Agriculture Red Tractor Certified

100%

Antibiotic usage Pigs

mg/ PCU

73.7

83.31

84.78

85.5

Antibiotic usage Lambs

mg/ PCU

6.85

6.9

6.3

6.5

Farms

Unit

2019

2020

2021

2022

Total number of supplying pig farms

Farms

418

472

526

455

Number of integrated pig farms

Farms

352

396

424

369

Number of independent pig farms

Farms

102

Number of integrated (Lamb) farms

Farms

Number of Conventional independent (Lamb) farms

Farms

326

325

354

342

Number of Organic independent Farms (Lamb) farms

108

105

100

Total Number of supplying (Lamb) farms

Farms

436

431

476

446

Pigs and Lambs

Unit

2019

2020

2021

2022

Average Sow Lifetime

Days

650

675

Days on feed average (Pigs)

Days

129

146

144

Number of head slaughtered

Pigs

2,313,009

2,195,055

2,262,103

Number of head slaughtered

Sheep

131,928.00

804,825

Average Carcass Weight (Pig)

Average Carcass Weight (Lamb)

18.2

18.8

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

2,318,098 83

101

Methodology

Contents

Transport (Pigs)

Unit

2019

2020

2021

2022

Pig Average Transport Time (Maximum permitted 8hrs)

Hours

4.14

3.89

3.69

3.86

Transport (Lamb)

Unit

2019

2020

2021

2022

Lamb Average Transport time (Maximum permitted 8hrs)

Hours and Minutes

1 hour 45 minutes

1 hour 36 minutes

2 hrs 5 mins

2 hours 15 mins

Deforestation and Responsible Sourcing

Unit

2019

2020

2021

2022

Palm Oil

RTRS certified soy

100%

Use of verified deforestation certified free (vDCF) in integrated pig diets

19%

18%

14%

Soy inclusion in integrated diets

0.3%

7% See our latest deforestation policy

Pilgrim's UK deforestation policy Sustainable Food Production Production

Unit

2019

2020

2021

2022

Total Production Tonnes (Sold Volume)

Tonnes

446,355

431,171

425,231

440,089

Percentage of processing production sourced from Pilgrim’s UK’s integrated Agriculture operations

68%

72%

69%

Food Loss & Waste

Unit

2019

2020

2021

2022

Total Food loss & Waste (FLW)

Tonnes

21,603.30

24,468.56

25,615.00

25,144.61

Food Waste (FLW) as a proportion of all food produced and ingredient handled/ purchased (%)

5.11

5.29

5.48

5.27

Tonnes of Food Loss and Waste (FLW) considered inedible

Tonnes (% of Total Production)

22,104 (5.08%)

26,657 (5.76%)

20,927 (4.48%)

24,393 (5.1%)

Tonnes of Food Loss and Waste (FLW) considered edible.

Tonnes (% of Total Production)

435 (0.1%)

161.50 (0.03%)

282.30 (0.06%)

551.87 (0.12%)

Countries of operation

Countries

Scotland, England

England, Wales

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

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Methodology

Contents

Food Redistribution

Unit

2019

2020

2021

2022

Total Redistributed Meals Equivalents

Meal Equivalents (420g) WRAP

No data available

672,069

1,313,977

ISO Certifications

Unit

2019

2020

2021

2022

Pilgrim’s UK facilities certified to ISO45001

100

Pilgrim’s UK facilities certified to ISO14001

100

Food Safety

Unit

2019

2020

2021

2022

Supplier facilities certified to a (GFSI) food safety certification programme

Pilgrim’s UK facilities Global Food % Safety Initiative (GFSI) Certified

100

Food Safety & Quality Index (FSQI) Score

FSQI Not Implemented

Customers

Unit

2019

2020

2021

2022

Complaints per million units (CPMU)

Complaints

16.4

14.5

11.8

Engineering

Unit

2019

2020

2021

2022

Engineering downtime

9.2%

4.3%

2.4%

1.9%

Planned Preventative Maintenance completion

78.4%

86.7%

92.1%

91.8%

Net Zero & Scope 1, 2 & 3 emissions

Unit

2019

2020

2021

2022

Scope 1 Emissions

tCO2e

31,950

33,317

28,330

28,518

Scope 2 Emissions (Location-based)

tCO2e

32,503

25,067

23,347

20,298

Scope 2 Emissions (Market-based)

tCO2e

44,190

Scope 3 Emissions

tCO2e

2,216,874

1,966,114

2,138,144

2,011,973

Scope 3: Purchased goods and services

tCO2e

1,434,626

1,193,274

1,338,800

1,230,878

Scope 3: Capital goods

tCO2e

29,299

13,892

25,136

2,301

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Scope 3: Fuel and energy related activities

tCO2e

12,314

9,309

12,958

11,311

Scope 3: Upstream transport

tCO2e

28,230

27,341

16,777

18,653

Scope 3: Waste generated in operations

tCO2e

517

431

527

482

Scope 3: Business travel

tCO2e

2,791

2,974

683

468

Scope 3: Employee commuting

tCO2e

6,847

2,987

2,941

2,702

Scope 3: Upstream leased assets

tCO2e

581

291

260

Scope 3: Downstream transport

tCO2e

30,923

61,467

48,521

57,435

Scope 3: Processing of sold product

tCO2e

132,281

101,325

136,680

135,377

Scope 3: Use of sold products

tCO2e

515,443

532,421

532,682

529,492

Scope 3: End of life

tCO2e

23,022

20,402

22,179

22,786

Total Scope 1, 2 & 3 (Locationbased)

tCO2e

2,281,327

2,024,498

2,189,821

2,060,789

Total Scope 1, 2 & 3 (Marketbased)

tCO2e

2,293,014

1,999,431

2,166,474

2,040,491

Energy (Fuel)

Unit

2019

2020

2021

2022

Fuel Consumption (Natural Gas, Kerosene, LPG)

kWh

126,217,515

122,346,383

121,735,183

115,798,721

Electric Consumption

kWh

126,290,016

111,128,280

109,157,919

107,930,662

Number of sites with solar PV installations

Sites

Renewable Electricity

1.2%

100%

Water

Unit

2019

2020

2021

2022

Water Consumption

1,305,426

1,176,514

1,233,259

1,192,140

Animal By-products

Unit

2019

2020

2021

2022

Animal By-Products Category 1

Tonnes

No Data available

326.76

2,214.61

Animal By-Products Category 2

Tonnes

No Data available

20,299

25,615.41

22,930

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Animal By-Products Category 3

Tonnes

No Data available

13,604

20,926.83

18,942

Blood

No Data available

10,897.8

10,954.99

8,593.26

Mucosa

No Data available

410.26

5,204.68

4,616.5

Waste

Unit

2019

2020

2021

2022

Energy from waste

Tonnes

6,344.83

16,855.06

9,680.30

13,352.39

Recycled waste

Tonnes

5,713.23

6,403.73

1,539.40

1,413.52

Hazardous Waste

Tonnes

1.02

No data available

153.23

56.24

Effluent Daf sludge

Tonnes

No data available

No Data available

17,340.99

7,402.43

Using ‘no, less, or best plastic’ – Develop reuse systems

N/A

none complete

Using ‘no, less, or best plastic’ – Track GHG impact

N/A

11 LCA's assessed

Sustainable Packaging & Plastic

Use 100% recyclable, or reusable plastic packaging

N/A

91.87

Minimum 30% average recycled content in plastics.

% of products complying with minimum

N/A

41.57%

All board to be sustainably sourced

N/A

100%

Health & Safety

Unit

2019

2020

2021

2022

Severe Accidents

Accidents

0.37

0.17

0.068

1.26

1.27

0.89

People & Community

Global Safety Index score DART Rate

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0.63

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General Employee Metrics

Unit

2019

2020

2021

2022

Total Employees (excl agency)

Number of People

5366

5103

5076

4931

Total Employees Male

Number of People

3567

3344

3343

3265

Total Employees Female

Number of People

1799

1759

1733

1666

Total Employees Under 30

Number of People

1205

1158

1052

715

Total Employees 30 - 50

Number of People

2654

2503

250

2453

Total Employees over 50

Number of People

1507

1442

1523

1763

Total Number of agency workers

Number of People

1248

1290

992

857

Total Number of part time workers

Number of People

No data available

200

Total number of Senior Leadership Positions

Number of People

160

175

211

220

Females in senior leadership positions

Number of People

Males in senior leadership positions

Number of People

104

114

138

143

Executive Leadership Team Breakdown

Number of People

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

9 Total, 7 Male (77.7%), 2 Female (22.3%).

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United Kingdom – 46.94 Poland – 18.00 Romania – 10.58 Lithuania – 8.48 Portugal – 5.55 Latvia – 3.87 Bulgaria – 3.76 Slovakia – 0.65 Italy – 0.32 Czech Republic – 0.25 Brazil – 0.21 Spain – 0.21 Russian Federation – 0.14 India – 0.14 Jamaica – 0.12 Timor-Leste – 0.09 Ghana – 0.09 Hungary – 0.092 Syrian Arab Republic – 0.07 Mexico – 0.07 Slovenia – 0.05 United States – 0.05 Ukraine – 0.05 France – 0.05 Congo – 0.05 Greece – 0.05 Afghanistan – 0.02 Germany – 0.02 Morocco – 0.02 Egypt – 0.02 South Africa – 0.023

Nationalities employed

Total Number of Nationalities – 31

Learning & Development

Unit

Butchery Academy

Projects

259, this will increase by a further 79 by June/ July 2023.

Number of trainees

Number of People

162

Average hours of training undertaken per employee

Average Training Hours per Employee

50.68

51.84

95.52

93.20

Diversity, Equity & Inclusion

Unit

2019

2020

2021

2022

Diversity, Equity and Inclusion courses completed

Hours

Hrs not recorded

Hrs not split into categories

13,296

Diversity, Equity and Inclusion Ambassadors

Number of People

Ethics & Human Rights

Unit

Elected to Food Network for Ethical Trade (FNET) Board Modern Slavery online training courses completed (Managers)

Hours

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

2019

2020

2021

2022

11 2019

2020

2021

2022

Yes

Hrs not recorded

Hrs not split into categories

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Definitions Metric

Calculation

Definition

Production Tonnes PUK (Sold Volume)

The total tonnes of product sold by Pilgrim’s UK.

Global Safety Index score

Global Safety Index enables organisations to measure, manage and benchmark Safety Leadership, Safety Culture and Mental Health Literacy.

DART Rate

DART is an acronym for Days Away, Restricted, or Transferred. It tracks how workplace injuries or illnesses affect the normal course of business operations.

Customers

Pilgrim’s UK’s customers include retail, foodservice, wholesale and export.

Absence due to lost-time accidents

Absence due to lost-time accidents, is the total number of workdays lost due to accidents excluding the day of the accident divided by the number of lost-time accidents.

Severe Accidents

A severe injury is defined as: Fatality Amputation Permanent vision loss Inpatient hospital for more than 24 hours Incident leading to more than 15 days lost time

Global food safety Initiative Certified Facilities

The number of our own facilities which are certified under GFSI. (BRC).

Food Safety & Quality Index (FSQI)

A Company performance measure based on multiple food safety and animal welfare parameters used to evaluate site and group performance against annually set targets. Minimum acceptable score at site and full-business level is 90%.

Complaints per million units (CPMU)

A key performance indicator used to measure food safety and quality performance for our sites. It is calculated by dividing the number of justified complaints received by the number of units (millions) sold in the period.

Engineering downtime

A measure of site downtime due to engineering breakdowns or failures.

Planned Preventative Maintenance completion

A measure of routine site engineering maintenance performance against target.

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Metric

Contents

Calculation

Definition

Food Surplus Redistribution (Meals Equivalents)

The total number of ‘meals equivalents’ donated by Pilgrim’s UK, using the WRAP recommendation of a 420g “Average” meal size.

Scope 1 emissions

Scope 1 emissions are the amount of direct greenhouse gas emissions from primary energy at our production sites, including fuels used in stationary installations on site (natural gas) as well as mobile installations (diesel). Emissions related to dry ice and CO₂ used as anaesthesia as well as the global warming potential of purchased refrigerants are also included in Scope 1.

Scope 2 emissions

Scope 2 emissions are the amount of indirect CO2e greenhouse gas emissions from secondary energy, mainly electricity. The market-based method calculates emissions based on the electricity that organizations have chosen to purchase, often spelled out in contracts or instruments such as Renewable Energy Guarantees of Origin (REGOs).

Scope 3 emissions

The calculation of scope 3 emissions for Pilgrim’s UK has been undertaken and validated by a third party, and follows the methodology outlined in the GHG Protocol (Corporate Value Chain (Scope 3) Accounting and Reporting Standard). This includes Purchased goods and services, Capital goods, Fuel and energy related activities, Upstream transportation, Waste generated in operations, Business travel, Employee commuting, Upstream leased assets, Downstream transport, Processing of sold product, Use of sold product and End-oflife treatment. All farm-level greenhouse gas emissions are included in the category 1 Purchased goods and services. This category accounts for the majority of our scope 3 emissions and includes the fullvalue chain emissions from animal production.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Scope 3 includes all other indirect emissions that occur in the upstream and downstream activities of an organisation.

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Calculation

Definition Category 2 material is also high-risk material and is defined in Article 9. Category 2 material includes fallen stock, manure and digestive content. Category 2 is also the default status of any animal by-product not defined in Regulation (EC) 1069/2009 as either category 1 or category 3 material. Category 2 ABPs.

Animal By-Products Category 2

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Category 2 ABPs are classed as high risk. They include: • Animals rejected from abattoirs due to having infectious diseases. • Carcasses containing residues from authorised treatments. • Unhatched poultry that has died in its shell. • Carcasses of animals killed for disease control purposes. • Carcasses of dead livestock. • Manure. • Digestive tract content.

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Metric

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Calculation

Definition Article 10 of Regulation (EC) 1069/2009 defines category 3 animal by-products. Category 3 materials are low risk materials. Category 3 material includes parts of animals that have been passed fit for human consumption in a slaughterhouse, but which are not intended for consumption, either because they are not parts of animals that we normally eat (hides, hair, feathers, bones etc) or for commercial reasons. Category 3 material also includes former foodstuffs (waste from food factories and retail premises such as butchers and supermarkets). Catering waste, including domestic kitchen waste is category 3 material, though it is only in the scope of the Regulations in certain situations, to prevent it from being fed to livestock (which is banned under the Regulation) or such as when it is intended for composting or anaerobic digestion.

Animal By-Products Category 3

Category 3 ABPs are classed as low risk. They include: • Carcasses or body parts passed fit for humans to eat, at a slaughterhouse. • Products or foods of animal origin originally meant for human consumption but withdrawn for commercial reasons, not because it’s unfit to eat. • Domestic catering waste. • Shells from shellfish with soft tissue. • Eggs, egg by-products, hatchery by-products and eggshells. • Aquatic animals, aquatic and terrestrial invertebrates. • Hides and skins from slaughterhouses. • Animal hides, skins, hooves, feathers, wool, horns, and hair that had no signs of infectious disease at death. • Processed animal proteins (PAP). PAP are animal proteins processed from any category 3 ABP except: • Milk, colostrum or products derived from them. • Eggs and egg products, including eggshells. • Gelatine. • Collagen. • Hydrolysed proteins. • Dicalcium phosphate and tricalcium phosphate of animal origin. • Blood products.

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Metric

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Calculation

Definition

Blood

Blood arises as a butchery and abattoir waste. As a product, blood is not intended for Human consumption. Blood is defined as an animal by-product according to Article 3 of Regulation (EC) 1069/2009.

Mucosa

Mucosa is derived from the lining of animal colons. It is an animal by-product often used in the pharmaceutical industry.

Use 100% recyclable, or reusable plastic packaging

We are aligned with WRAP and are members of The UK Plastics Pact, so that by 2025, we intend to eliminate problematic or unnecessary single-use packaging through redesign, innovation or alternative (reuse) delivery model. 100% of plastics packaging to be reusable, recyclable or compostable. 70% of plastics packaging effectively recycled or composted, and a 30% average recycled content across all plastic packaging. WRAP The UK Plastics Pact A Roadmap to 2025.

Minimum 30% average recycled content in plastics.

We are aligned with WRAP and are members of The UK Plastics Pact, so that by 2025, we intend to eliminate problematic or unnecessary single-use packaging through redesign, innovation or alternative (reuse) delivery model.100% of plastics packaging to be reusable, recyclable or compostable. 70% of plastics packaging effectively recycled or composted, and a 30% average recycled content across all plastic packaging. WRAP The UK Plastics Pact A Roadmap to 2025. There are two widely used certification schemes: 1. FSC (Forestry Stewardship Council) 2. PEFC (Programme for the Endorsement of Forest Certification)

All board to be sustainably sourced

Both certification schemes represent a widely recognised form of certification. All suppliers of paper should have their own for of responsible sourcing policy, so provided this can be demonstrated through evidence or an appropriate policy. This is acceptable to meet our Pilgrim’s UK target, however, care should be taken to consider customer requirement and if a certification scheme is mandatory. WRAP The UK Plastics Pact A Roadmap to 2025.

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Target & Activity Overview A summary of our Pilgrim’s UK 2030 objectives / targets, key activities and performance in 2022, and next steps & future activities.

Pilgrim’s UK 2030 Overarching Targets: Timescale

Overarching

Sustainable Farming

Sustainable Food Production

Sustainable Products

Conduct a HRIA within pig and sheep supply chain. Resolve actions from HRIA By 2025 use 100% in collaboration recyclable, or reusable with supply chain plastic packaging stakeholder Periodically review need for further HRIA in high-risk supply chain

Complete Life Cycle Assessments for all product SKUs

Maintain High Animal 100% renewable Welfare Standards electricity (achieved)

Not Timebound

Sourcing from Verified Deforestation and Conversion free areas by 2025

2025

All board to be sustainably sourced

2025

By 2025 a minimum of 30% average recycled content in plastics.

2025

2030

Sustainable People and Packaging and Plastic Community

Net Zero - 2030 (Scope 1 & 2)

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

50% of fresh food sourced from areas with sustainable water management

50% reduction in water intensity by 2030

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Timescale

Contents

Overarching

Sustainable Farming

Sustainable Food Production Reduce edible food loss and waste 50% by 2030 Food Redistribution – wording to redistribute all available edible food (for 2022 target was 1million meals per year (improve on last year)

2030

2035

Net Zero across our entire supply chain by 2035 (Scope 3)

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Sustainable People and Packaging and Plastic Community

Sustainable Products

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Targets By Sustainability Governance Pillar:

Sustainable Farming: Objectives

Status

2022 progress

Future activities / next steps

Animal Welfare

Achieved

Retained 100% RSPCA and Red Tractor Pilgrim’s UK Agriculture certification.

Maintain the highest standards of animal welfare.

Achieved

In 2022 alone, Pilgrim’s UK sent out to farms 23ha of Bee’s & Seed mix and 24ha of Pollinator mix. In total creating 47 ha of pollinator strips.

Continue to enhance and nurture biodiversity.

Sourcing from Verified Deforestation and Conversion free areas by 2025

Opportunity Area

Pilgrim’s UK pledge to following the UK Soy Manifesto requirements and recognise our responsibility to support Report annually on progress towards third party, independent producers our deforestation commitments in line to meet the targets. We have worked with UK Soy Manifesto requirements. closely with EFECA to develop the Pork Sector Plan and commit to continue our high level of engagement.

Reduce soya content in feed to 5%

On Track

Current soya inclusion is 7%, against an industry average of 15-20%.

Make further progress towards our target of 5% soya inclusion in diets.

Target to include <1% of Palm Oil in diets Achieved

We have reduced Inclusion rates in diets to (0.3%) vs a target of <1%.

Continue to source 100% of our palm oil from RSPO certified sources.

Assessing water risk

Pilgrims UK funded the development of The Rivers Trust AgHub risk assessment We are working with The Rivers Trust to tool and have been working with The continue these assessments through Rivers Trust for the last 18 months on this project. Using the risk assessment 2022 and 2023. tool, we have assessed 100% of our sites / pig suppliers and lamb suppliers.

To plant >10 ha of pollinator strips annually.

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Opportunity Area

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Sustainable Food Production: Objectives

Status

2022 progress

Future activities / next steps

Net Zero across our own operations by 2030 (Scope 1&2)

On Track

50 to 55 % reduction since baseline. Driven through behaviour change programmes, GHG reduction investment projects, procurement of renewable electricity and rationalized our operational footprint.

Continue making progress towards this target.

100% renewable electricity

Achieved

100% of the electricity we use is sourced Pilgrim’s UK are continually exploring from renewable energy sources. Each of the potential to expand our solar and wind generation capacity. our sites are certified for this.

50% reduction in water intensity by 2030

On Track

Pilgrim’s UK have achieved at least a 13.5% reduction to date in water use intensity.

Further reduce our water use intensity.

Achieve a 50% reduction in food waste by 2030.

Achieved

Pilgrim’s UK completed this in 2020.

Maintain 0.1% food waste of % total production.

Electricity intensity year on year reductio (5% per year). In 2022, this was -15% from baseline

On Track

Bureau reporting. Unannounced facilities auditing. Ongoing programmes with Verco.

Internal energy reduction campaigns, equipment replacement, etc.) (Net Zero behaviour and investment programs).

Fuel intensity year on year reduction (5% per year). In 2022, this was -15% from baseline

On Track

Bureau reporting. Unannounced facilities auditing. Ongoing programmes with Verco.

Internal energy reduction campaigns, equipment replacement, etc.) (Net Zero behaviour and investment programs).

Water intensity year on year reductio (5% per year). In 2022, this was -15% from On Track baseline

Pilgrim's UK met this target in 2022. Pilgrim’s UK have built water specific KPI’s and catch balls into each of our Site Director’s responsibilities.

At our Spalding site, we have been trialling water harvesting technology.

Food redistribution- >1 million meals per year.

Achieved

To reduce our food waste Pilgrim’s UK redistributed the total meals To continue to minimise food waste equivalence of just over 1.3 million meals via redistribution and more efficient in 2022 via Fareshare and Company processing. Shop.

To reduce general waste by 10%, and where possible redirect this into other waste streams.

On Track

Continue to map our waste streams A waste mapping process was launched and reduce general wastes as much as across all sites in 2022. possible.

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Sustainable Packaging & Plastic: Objectives

Status

2022 progress

On Track

We are aligned with WRAP and The UK Plastics Pact, so that by 2025, we intend to eliminate problematic or unnecessary single-use packaging In 2022, we tracked and moved as much of our through redesign, innovation or alternative (reuse) material from non-recyclable to recyclable as delivery model.100% of plastics packaging to be possible. So far, we have achieved a recyclability rate reusable, recyclable or compostable. 70% of plastics of 92.79% for our packaging. packaging effectively recycled or composted 30% average recycled content across all plastic packaging.

Minimum 30% average recycled content Achieved in plastics.

To Date at Pilgrim’s UK, we have a recycled content of 41.57%

We are aligned with WRAP and The UK Plastics Pact, so that by 2025, we intend to eliminate problematic or unnecessary single-use packaging through redesign, innovation or alternative (reuse) delivery model.100% of plastics packaging to be reusable, recyclable or compostable. 70% of plastics packaging effectively recycled or composted 30% average recycled content across all plastic packaging.

All board to be sustainably sourced

We have moved to 100% supply of sustain;ably sourced board from 2022.

Continue to source all wood-based materials from sustainable sources.

Use 100% recyclable, or reusable plastic packaging

Pilgrim’s UK 2030: Sustainability Strategy Progress Report

Achieved

Future activities / next steps

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People & Community: Objectives

Status

2022 progress

Conduct HRIA within our integrated production systems

Achieved

Pilgrim’s UK have completed a HRIA across our own To review other high-risk commodities and make UK pork and lamb supply chains progress against stated actions.

Opportunity Area

Progress is being made towards the completion of numerous key findings and recommendations outlined in the assessment. Additional work is being carried out to complete various recommendations which have set completion timeframes by the end of 2023.

To continue to contribute towards all longer-term ongoing recommendations.

On Track

Pilgrim’s UK will continue to promote Modern Slavery Awareness training to farmers and all employees. Ongoing progress is being made to establish MSIN as an independent legal entity.

We pledge to monitor, identify (via our whistleblowing line) and eliminate any threats of modern slavery that may occur within our own operations or supply chain.

Bright Future

On Track

Pilgrim’s UK will continue to promote Modern Slavery Awareness training to farmers and all employees. Ongoing progress is being made to establish MSIN as an independent legal entity.

Continue to support survivors of Modern Slavery through the Bright Futures programme.

Ingredients for Life- For the next financial year we hope to be able to run 2-3 of these courses for up to 6 Modern Slavery victims at a time.

On Track

We would have ran two courses within this financial We have been enhancing our facilities to be able to year. support the provision of these courses.

Objectives

Status

2022 progress

Future activities / next steps

Ambition to complete Life Cycle Assessments for all product SKUs

On Track

Pilgrim’s UK are members of the Mondra Coalition.

To conduct multiple LCA’s and improve our approach to this overtime.

Resolve actions from HRIA

To be able to share all data relevant to Modern Slavery to collectively build a bigger industry picture (MSIN).

Future activities / next steps

Sustainable Products:

Pilgrim’s UK 2030: Sustainability Strategy Progress Report