1. The World of General Mills

2. 2 Championship Brands

3. 3 Nourishing Our Planet Began using recycled materials for paperboard cartons (1930s) Purchased in 2000 Early crop rotation adopters Early pesticide management adopters 1945 General Mills Foundation 1954 100% vitamin-fortified cereal in 1961 Green Giant Integrated Pest Management 19101920193019401950196019701980199020002010 First vacuum-pack corn in 1929 First Global Sustainability Officer in 2007 Commits to 100% Sustainable palm oil by 2015

4. 4 Cheerios: A Circle of Goodness Efficient Cereal Processing Sustainable Crop Renewable Energy Recycled Packaging Healthy breakfast Nourishing Communities

5. 5 2015 Goals Energy, water usage and greenhouse gas emissions Transportation fuel * Solid waste generation Packaging improvements

6. 6 Our Mission and Values

7. www.gmaonline.org EPR: Does it Deliver as Promised?

8. www.gmaonline.org Grocery Manufacturers Association * Represents a sample of GMA’s Members

9. www.gmaonline.org Packaging Together, the food, beverage and consumer products industry will voluntarily reduce its packaging by 4 billion pounds by 2020. This is a 19% cumulative reduction and a significant step for our industry and our environment. Learn More: GMA’s Sustainable Packaging Best Practices Guide outlines considerations and model practices in packaging design and sourcing. Sustainability Leadership The food, beverage, and consumer products industry has made great strides in many sustainability areas, furthering our commitment to applying sustainable solutions in all areas of our work while continuing to deliver products that enhance consumers’ lives. Learn More: A newly released Sustainability Success Stories Report by PricewaterhouseCoopers outlines the dramatic steps the industry has made around the areas of air, water, and waste. Food Waste There is no bigger opportunity for our industry to simultaneously address hunger in America and our environmental footprint than by reducing the amount of food sent to landfills by diverting food to food banks and food waste to beneficial alternatives like compost. These actions represent not only a significant opportunity to help the hungry, but also an opportunity to reduce emissions of methane. Learn more about the GMA-FMI Food Waste Opportunities and Challenges initiative. Sustainability

10. www.gmaonline.org Sustainability Heinz now manufactures all glass ketchup bottles using 100% post-consumer reground and recycled glass Since 2005, Kraft has removed more than 50 million road miles from its global transportation network The Kellogg Company has reduced electricity use at its warehouses in North America decreased 53% since 2005 The Campbell Soup Company has reduced the amount of steel required to make soup cans by more than 1,800 tons since 2005 Cargill’s engineers designed and installed a methane reuse system that has and have displaced 20-25 percent of all natural gas use and reduced greenhouse gas emissions by 325,000 metric tons annually

11. www.gmaonline.org State Overall Recycling Rates AK HI OR WA ID MT WY NV UT AZ NM CO ND SD NE KS OK TX MN IA MO AR LA WI IL KY MI IN OH TN MSAL FL GA SC NC VA WV MD DE NJ PA NY ME NH VT MA RI CT <10% 11%-20% 20%-30% CA 30%-40% >40% *Note: 2004 Data

12. www.gmaonline.org U.S. Recycling Rates of Packaging Source: US EPA 2010 MSW Report, 2009 data (last reporting year)

13. www.gmaonline.org Landfilling is Decreasing Source: US EPA 2010 Municipal Solid Waste Report

14. www.gmaonline.org Solid Waste a Challenge to Municipalities 2010 Landfill Composition, 165 Million Tons 3 Food: 36 M tons Packaging: 38 M tons

15. www.gmaonline.org EPR: Commonly Stated Goals Decrease environmental impact of packaging by increasing recycling rates 1 Create incentives to design “environmentally friendly” packaging 3 Extended Producer Responsibility: Shifts responsibility for the end-of-life of products and/or packaging from the municipality to the manufacturer. What is Extended Producer Responsibility? Create financial incentives for companies and consumers to recycle 2 4 Generate new revenue for states/municipalities

16. www.gmaonline.org Conclusion 1: U.S. overall MSW recycling rate is equal to or better than Canada & Europe 13 U.S. 24%, EU 23%, Canada 18% Nationwide recycling rates of all MSW SAIC Report: EPR Not An Effective Solution 7

17. www.gmaonline.org Conclusion 2: EPR does not cause changes in package design or selection Packaging in U.S. decreased more than in EU, despite faster GDP growth in U.S. SAIC Report: EPR Not An Effective Solution

18. www.gmaonline.org JurisdictionStart DateData DateTotal System Net CostNet Cost/Ton BelgiumEPR-19972009Minimum net cost €112.3MOver $98 ManitobaEPR- 4/20102010Total annualized estimated C$13.7MOver $166 OntarioEPR- 20032010Total cost C$203M$202 Ramsey, Co MNNo EPR2011$6.5M Net Municipal cost$156 Conclusion 3: EPR has not decreased system cost. Increases government & administrative costs 8 SAIC Report: EPR Not An Effective Solution

19. www.gmaonline.org Conclusion 4: Current policies can effectively & efficiently in improving recycling & recovery rates if implemented 18 identified in report Work in combination to increase rates Do not increase government or administrative costs SAIC Report: EPR Not An Effective Solution

20. www.gmaonline.org GMA Holistic Approach 1.Evaluate Options for Managing Waste 2.Continue our Commitment to Reduce Waste 3.Increase Recovery and Recycling Rates 4.Address Food Waste 5.Coordinate Efforts 6 Deals with all aspects of waste, not just packaging and recycling

21. www.gmaonline.org Solution 1: Evaluate Options for Managing Waste Pay-as-you-throw Variable pricing Disposal bans, limits Recycling rewards, rebates Mandatory recycling (require materials or service levels) Recycling program management Integrated solid waste management plans Diversion goals Landfill surcharge/tax Recycling infrastructure/program grants Building design standards No direct landfilling of unprocessed waste SAIC Report Understand Other Initiatives

22. www.gmaonline.org Solution 1: Evaluate Options for Managing Waste U.S. has One-Fifth Excess Capacity Recycling of total MSW Source: McKinsey & Company analysis

23. www.gmaonline.org U.S. Lags Behind Europe in Waste to Energy Source: US EPA 2010 Municipal Solid Waste Report

24. www.gmaonline.org Update 2012 Packaging Reduction Survey 2013 Sustainability Success Stories Report Best Practices Guide to Sustainable Packaging with FMI Solution 2. Continue our Commitment to Reduce Packaging Waste 4b pound packaging weight cumulative avoidance, 2005-2020 9

25. www.gmaonline.org Solution 3. Increase Recovery & Recycling 23% increase in volume 18% increase in participation 10 Identify Best Practices Learn from NGO Thought Leaders Aggregate & Amplify Municipal Success Explore Partnerships with Key Cities

26. www.gmaonline.org Solution 4: Address Food Waste Social Economic Environmental The Case for Less Food WasteFood Waste Action, Next Steps 1.Complete Assessment 2.Agree on Metrics & Goals 3.Publish & Educate Members on Best Practices 4.Identify & Support Public Policies 5.Develop & Execute Communication Plan 6.Explore Pilot Projects 11

27. www.gmaonline.org Solution 5: Coordinate Efforts Participation Partnership Leadership Education 12

28. AK HI CA OR WA ID MT WY NV UT AZ NM CO ND SD NE KS OK TX MN IA MO AR LA WI IL KY MI IN OH TN MSAL FL GA SC NC VA WV MD DE NJ PA NY ME NH VT MA RI CT 2012 Introductions As of 11/13/12 2013 EPR Forecast 2013 Prospective Packaging EPR Activity

29. www.gmaonline.org Food for Thought What is the problem we’re trying to solve? Is a trash tax the most efficient way to address these challenges? Are there other solutions that are less costly? Are there more sustainable approaches that are both voluntary and more effective?