GRI Content Index

GRI Content Index

The 2011 Hormel Foods Corporate Responsibility Report uses the G3 Guidelines developed by the Global Reporting Initiative (GRI), the internationally recognized standard for responsibility reporting. We use the Food Processing Sector Supplement, which is part of the G3 Guidelines but also includes other topics specific to our sector. The G3 Guidelines help us determine material issues not addressed by stakeholder feedback and best practices research. This chart explains what indicators are included in the report and where they are located online. The 2011 Hormel Foods Corporate Responsibility Report is self-declared Application Level B as confirmed by the Global Reporting Initiative (GRI). See the statement from GRI.

Profile Disclosure Description Reported Reference/Explanation
Strategy and Analysis
1.1 Statement from the most senior decision-maker of the organization. Letter from CEO
1.2 Description of key impacts, risks and opportunities. Letter from CEO

Goals

2011 Annual Report, pages 26-28

Organizational Profile
2.1 Name of the organization. About Hormel Foods
2.2 Primary brands, products, and/or services. About Hormel Foods
2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. About Hormel Foods
2.4 Location of organization’s headquarters. About Hormel Foods
2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. About Hormel Foods
2.6 Nature of ownership and legal form. About Hormel Foods
2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). About Hormel Foods
2.8 Scale of the reporting organization. About Our Employees

Innovation

2011 Annual Report, page 12, 16, 17, 24, 29

2.9 Significant changes during the reporting period regarding size, structure, or ownership. Letter from CEO

About This Report

Annual Report, page 1, 18

2.10 Awards received in the reporting period. About Hormel Foods
Report Parameters
3.1 Reporting period (e.g., fiscal/calendar year) for information provided. About This Report
3.2 Date of most recent previous report (if any). Past Reports
3.3 Reporting cycle (annual, biennial, etc.) About This Report
3.4 Contact point for questions regarding the report or its contents. Feedback
3.5 Process for defining report content. About This Report

Stakeholder Feedback

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). About This Report
3.7 State any specific limitations on the scope or boundary of the report. About This Report
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. About This Report
3.9 Data measurement techniques and the basis of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. About This Report
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods). Total Charitable Contributions graph
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. About This Report
3.12 Table identifying the location of the Standard Disclosures in the report. GRI Content Index
3.13 Policy and current practice with regard to seeking external assurance for the report. About This Report
Governance, Communities and Engagement
4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Corporate Governance

Ethics and Conduct

Committee Composition

4.2 Indicate whether the Chair of the highest governance body is also an executive officer. Corporate Governance
4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. Corporate Governance

Director Indepence Standards

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Corporate Governance

2011 Annual Report, page 61

Board Communication

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance). Corporate Governance
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. Corporate Governance
4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics. Corporate Governance

2011 Proxy, pages 2-3

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. Ethics and Conduct

About This Report

Supplier Responsibility Principles

Environmental Policy

4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. Risk Management

2011 Annual Report, pages 27-29

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance. 2011 Proxy, pages 5-6
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. N/A. Does not exist. We evaluate risks using an Enterprise Risk Management system. We have multiple goals to reduce environmental impacts and do not have serious threats of “irreversible damage.”
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. Animal Care

Food Quality and Safety

About Our Employees

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic. Animal Care
4.14 List of stakeholder groups engaged by the organization. Stakeholder Feedback
4.15 Basis for identification and selection of stakeholders with whom to engage. Stakeholder Feedback
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. Stakeholder Feedback
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Stakeholder Feedback
All Aspects of Sourcing
FP1* Percentage of purchased volume from suppliers compliant with company’s sourcing policy. Supply Chain/SQM
FP2 Percentage of purchased volume which is verified as being in accordance with credible, internationally recognized responsible production standards, broken down by standard. Supply Chain/SQM

Animal Care/HogsAdditional information is not available in how to track progress. 100% of purchased hogs come from independent farms that are PQA Plus Certified

Economic
EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. Philanthropy

Annual Report, page 12-17, 57-58

EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change. Annual Report, page 28
EC3 Coverage of the organization’s defined benefit plan obligations. Benefits
EC4 Significant financial assistance received from government. N/A: We did not receive significant assistance from the government; therefore, this indicator is not applicable
EC5* Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation. Benefits

Ratio of standard entry-level wage compared to local minimum wage is not reported. To report the ratio would be proprietary information; rather, we report the measures we take to ensure fair wages are given to all employees as part of our commitment to our employees.

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. Supply Chain
EC7* Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. People
EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. Communities

Philanthropy / Hunger

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. Risk Management
Environmental
EN1* Materials used by weight or volume. Not available: Due to the breadth of our operations and amount of materials used, we do not have an exact measurement of all materials used by weight. We estimate more than 4,500 types of materials are used in our operations, so we work to reduce packaging through our packaging minimization initiative.
EN2 Percentage of materials used that are recycled input materials. Packaging Minimization
EN3 Direct energy consumption by primary energy source. Energy

Direct energy GJ/thousand pounds of production (in gigajoules):
2006: 0.922
2007: 0.936
2008: 0.906
2009: 0.907
2010: 0.874

2011: 0.919Total direct energy (gigajoules):
2006: 4357150
2007: 4547050
2008: 4515400
2009: 4283300
2010: 4223275
2011: 4452100
EN4 Indirect energy consumption by primary source. Energy

Indirect energy GJ/thousand pounds of production (in gigajoules):
2006: 0.516
2007: 0.513
2008: 0.509
2009: 0.522
2010: 0.564
2011: 0.526

Total indirect energy (gigajoules):
2006: 2439841
2007: 2492194
2008: 2539898
2009: 2461626
2010: 2724131
2011: 2548800
EN5 Energy saved due to conservation and efficiency improvements. Energy Reduction Initiatives
EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. N/A: This is not applicable to our business because we do not produce products or services that meet this criteria (that provide energy-efficient or renewable energy based products and services.)
EN7 Initiatives to reduce indirect energy consumption and reductions achieved. Process / LOP / Burke
EN8 Total water withdrawal by source. Water
The term “recycled” does not sufficiently describe our operations. We reuse water in our manufacturing operations.
EN9 Water sources significantly affected by withdrawal of water. Not Material: Not material because our operations are not in areas that significantly affect water sources with our withdrawal.
EN10 Percentage and total volume of water recycled and reused. The term “recycled” does not sufficiently describe our operations. We reuse water in our manufacturing operations.
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. N/A: We do not report on this issue since the disclosure does not relate to our business because we do not have significant operations located in land designated as protected areas of high biodiversity.
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. N/A: We do not report on this issue since the disclosure does not related to our business because we do not have significant operations (thus, no products) that impact protected areas high in biodiversity.
EN13 Habitats protected or restored. N/A: We do not operate in areas where habitats are in need of being protected or restored.
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. N/A: We do not operate in areas where habitats are in need of being protected or restored.
EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. N/A: We do not operate in areas where habitats are in need of being protected or restored.
EN16 Total direct and indirect greenhouse gas emissions by weight. Air
EN17 Other relevant indirect greenhouse gas emissions by weight. Air
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. Air
EN19 Emissions of ozone-depleting substances by weight. Not material: Our primary refrigeration is ammonia based (not a GHG or ODS). We do have some ODS in use, such as R-22 (a Class II ODS), but its use is very minor by comparison and therefore is not material. The capture of the refrigerant is highly regulated, and we employ practices to minimize the risk of ODS losses related to equipment failure and incidental loss. Our organization does not produce ODS.
EN20* NOx, SOx, and other significant air emissions by type and weight. Air

Our operations track and record criteria air pollutant emissions, including NOx (Nitrogen oxides), SO2 (Sulfur dioxide), CO (Carbon monoxide) and PM (particulate matter). These emissions are reported as required by local, state, and federal requirements.
EN21 Total water discharge by quality and destination. Water
EN22* Total weight of waste by type and disposal method. Solid Waste Management
EN23 Total number and volume of significant spills. N/A: We did not have any significant spills for this reporting period.
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. N/A: We have zero international shipments of hazardous waste.
EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff. N/A: The majority of our water is discharged to POTWs, which in turn discharge in combination with other treated water to typically larger rivers. We do not discharge to wetlands or other highly sensitive water bodies.
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Packaging Minimization
EN27* Percentage of products sold and their packaging materials that are reclaimed by category. Not available: We report the amount of our product packaging materials that are recyclable or recycled and the amount of solid waste we prevent from going to the landfill through recycling or land spreading application. We do not have the exact total of products sold and packaging materials that are reclaimed as we do not have a process in place to capture this.
EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. Hazardous Waste

Compliance

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce. Environment

Air

EN30 Total environmental protection expenditures and investments by type. Environment
Social: Labor Practices and Decent Work
LA1 Total workforce by employment type, employment contract, and region. About Our Employees
LA2* Total number and rate of employee turnover by age group, gender, and region. TenureTotal number and rate of employee turnover is not material. It is more material to our company’s performance, our employee demographic and our stakeholders to report tenure rather than age group.
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. Benefits
LA4 Percentage of employees covered by collective bargaining agreements. About Our Employees
LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. About Our Employees
FP3 Percentage of working time lost due to industrial disputes, strikes and/or lock-outs, by country. About Our Employees
LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs. Safety
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region. Safety
LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. Benefits
LA9 Health and safety topics covered in formal agreements with trade unions. Benefits

Employee benefit information is applicable to all employees.

LA10 Average hours of training per year per employee by employee category. Professional Development
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. Professional Development
LA12 Percentage of employees receiving regular performance and career development reviews. Professional Development
LA13* Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. Diversity

Report BOD by women and minority and companywide minority numbers. We report women and minority group of our Board of Directors, but we do not report according to hourly and salaried employees.

LA14 Ratio of basic salary of men to women by employee category. Not material because we employ third-party analysis to statistically review pay differences.
Social: Human Rights
HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. About Our Employees
HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. Not available: While we do not report human rights screening of suppliers, we have developed the Supplier Responsibility Principles, which will detail standards for suppliers related to environment, safety, human rights, etc. In fiscal year 2011, we rolled out these principles to some of our key suppliers.
HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. Not available.
HR4 Total number of incidents of discrimination and actions taken. About Our Employees
HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights. About Our Employees
HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor. About Our Employees
HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor. About Our Employees
HR8 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations. Not material: We do not report on security practices because it is not material to our operations, which are largely in the United States and under the regulations of the USDA and federal agencies.
HR9 Total number of incidents of violations involving rights of indigenous people and actions taken. Not material: We do not report on this because Hormel Foods does not operate in areas at significant risk to indigenous rights. See Human Rights section here.
Social: Society
SO1* Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting. Human Rights

We do not have a management system for entering, existing and operating.

FP4 Nature, scope and effectiveness of any programs and practices (in-kind contributions, volunteer initiatives, knowledge transfer, partnerships and product development) that promote healthy lifestyles; the prevention of chronic disease; access to healthy, nutritious and affordable food; and improved welfare for communities in need. Nutritious Options

Hunger

SO2 Percentage and total number of business units analyzed for risks related to corruption. Ethics & Conduct
SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. Ethics & Conduct
SO4 Actions taken in response to incidents of corruption. Ethics & Conduct
SO5 Public policy positions and participation in public policy development and lobbying. Public Policy
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. Public Policy
SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. N/A: There have been no legal actions for anti-competitive behavior, etc.
SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. We have had no fines or non-monetary sanctions for non-compliance with laws and regulations (based on our understanding of significant as defined by the SEC)
Social: Product Responsibility
PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. Innovation

Safety

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes. Food Quality and Safety
FP5 Percentage of production volume manufactured in sites certified by an independent third party according to internationally recognized food safety management system standards. Food Quality and Safety, Management
FP6* Percentage of total sales volume of consumer products, by product category, that are lowered in saturated fat, trans fats, sodium and sugars. Nutritious Options
FP7 Percentage of total sales volume of consumer products, by product category, that contain increased fiber, vitamins, minerals, phytochemicals or functional food additives. Not material: 77 percent of our products are meat, which are not allowed to be fortified according to USDA guidelines.
PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. Packaging

Labeling

FP8 Policies and practices on communication to consumers about ingredients and nutritional information beyond legal requirements. Packaging
PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes. Food Quality & Safety
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. Product Innovation
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Responsible Marketing
PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes. Responsible Marketing
PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. N/A: We did not have any incidents to report.
PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. N/A: We do not report on this because Hormel Foods has not incurred significant fines for non-compliance with laws and regulations concerning the provision and use of products.
FP9 Percentage and total of animals raised and/or processed, by species and breed type. Hogs

Turkeys

FP10 Policies and practices, by species and breed type, related to physical alterations and the use of anesthetic. Not available: We follow industry standards for animal care and are committed to continuing to improve our practices. We base our animal husbandry practices on the best scientific data available, new technologies and hands-on experience. We will make a determination of our reporting as it relates to this specific indicator for future reports.
FP11 Percentage and total of animals raised and/or processed, by species and breed type, per housing type. Animal Care
FP12 Policies and practices on antibiotic, anti-inflammatory, hormone, and/or growth promotion treatments, by species and breed type. Animal Care
FP13 Total number of incidents of non-compliance with laws and regulations, and adherence with voluntary standards related to transportation, handling, and slaughter practices for live terrestrial and aquatic animals. Animal Care

* Partial reporting

Standard Disclosures