1. Sustainable Sourcing for Category Managers: Using the FMI Guide Five Winds International & Ecos US September 30, 2010

2. Acknowledgements Produced “by the industry for the industry” Thank you to: United Soybean Board FMI Sustainability Executive Committee and Council Specifically those that helped to launch the development of the guide: Suzanne Forbes (Wakefern), Harriet Hentges (Ahold USA), Tom McIntyre (Supervalu), Karen Meleta (Wakefern), Tracy Taylor (Ahold USA) and Jeanne von Zastrow (FMI) All those who participated in our Guide survey and submitted additional comments

3. Background on Guide & Presentation This presentation accompanies the document: Sustainability on the Shelves A Guide for Category Managers Please customize the Guide and these slides for your own use

4. Agenda Learning Objectives What is Sustainability? Sustainable Sourcing Decision Framework for Fresh Take-Home Messages Questions

5. Learning Objectives Provide good working understanding of sustainability in the food retail sector Identify key sustainability issues specific to each product category Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products

6. What is Sustainability? Sustainability “Business practices and strategies that promote the long term well-being of the environment, society, and the bottom line” - FMI

7. Sustainability in Your Company Poll: Who is in charge of sustainability in your company? Corporate Sustainability Director Senior Executive designated to manage sustainability c. Sustainability Team d. Other e. No one

9. Availability

10. Price

11. ServiceSustainable Sourcing SUSTAINABLE ATTRIBUTES

12. Sustainability is a Strategic Business Issue 300% Growth of U.S. sales of “ethical” cleaning products in 2009. Packaged Research $73M Additional profit generated by Marks and Spencer’s Plan A sustainability strategy in 2009. M&S 2010 Progress Report

13. Consumers are looking for “green” Source: 2009 GMA/Deloitte Green Shopper Study

14. Stepwise approach to buying more sustainable products

15. Step 1: Know Your Priorities What are your company’s priorities? Sustainable sourcing strategy Company sustainability priorities Product priorities

16. Poll: What sustainability issues are your customers asking about? (select all that apply) a) Packaging b) Sustainable seafood c) Organic d) Local e) Toxic/natural ingredients f) Other Step 1: What are your customers’ priorities?

17. What is a Sustainable Product?

18. How do these terms relate to sustainability? less toxics local eco-labelled recyclable organic BPA-free less packaging recycled content use fewer resources fair trade durable

19. What are the Sustainability Issues for Fresh?

20. Carbon Footprint A carbon footprint is the sum of all greenhouse gases emitted during a product’s production, transportation, consumption, and disposal. Carbon footprint calculation for a standard bag of Walkers Crisps is 80g CO2 which compares to 243g CO2 for an average cheeseburger. See Guide, page 22 Sources: US EPA Greenhouse Gas Equivalencies Calculator and http://www.walkerscarbonfootprint.co.uk/walkers_carbon_footprint.html and http://openthefuture.com/cheeseburger_CF.html

21. Water Footprint A water footprint is the sum of all the water used during a product’s production, transportation, consumption, and disposal. 53 gallons! See Guide, page 22 Source: http://www.huffingtonpost.com/2009/02/13/1-latte-53-gallons-of-wat_n_166759.html

23. Every year, the US generates around 14 million tons of food waste, equivalent to 106 pounds of food waste per personSee Guide, page 23 Source: http://www.epa.gov/reg3wcmd/solidwasterecyclingfacts.htm

24. Packaging Almost 1/3 of the waste generated in the U.S. is packaging See Guide, page 24 Source: http://www.cleanair.org/Waste/wasteFacts.html

25. Organic, Local, and Bioengineering Organic: grown without pesticides, synthetic fertilizers. Local: sourced or grown locally (distances vary). Bioengineered: use of biotechnology in the production of foods Consumer demand vs. sustainability science? See Guide, page 25 Source: http://pubs.acs.org/doi/abs/10.1021/es702969f

26. Sourcing is the life cycle Hot Spot for Fresh

27. Sourcing is the Hot Spot for Fresh 50% of the Earth's habitable land is used for agriculture Livestock produce 51% of annual worldwide greenhouse gas emissions Agriculture consumes 69% of the planet’s fresh water Source: http://www.worldwatch.org/files/pdf/Livestock%20and%20Climate%20Change.pdf

30. Step 3: Acquire Information You’ve started the conversation, now begin to acquire information on company and product sustainability See page 21 of Guide for General Questions to ask your suppliers http://www.greenbiz.com/news/2010/03/11/how-to-embed-sustainability-into- company-dna#ixzz10qIvI7SA "A lot of companies publish how green their building is, but it doesn't matter if you're shipping millions of power-hungry products with toxic chemicals in them," …."It's like asking a cigarette company how green their office is.” Apple CEO Steve JobsSource: Businessweek 2010

32. Possible starting points:Review and compare to information in Guide & “For More Information” links Compare information with your company priorities identified in Step 1 Talk to your sustainability team Talk to other category managers

33. Evaluate Information Types of information you may receive:

34. Eco-Labels: One tool in your toolkit Learn more about the eco-labels for your category SOURCES: World Resources Institute, Big Room Inc. | Bonnie Berkiwitz and Laura Stanton/The Washington Post - May 3, 2010

36. Sustainable

37. Green

38. Environmentally-friendlySin of the Hidden Trade-Off Sin of No Proof Sin of Vagueness Sin of Irrelevance Sin of Fibbing Sin of the Lesser of Two Evils Sin of Worshiping False Labels For more information, see Guide pages 27-28 (Used with Permission)

39. Greenwashing Poll: If you think you’ve seen greenwashing, what about it made you question the claim? No data/proof provided Vague or undefined terms used Claim seemed too good to be true Hidden trade-offs may exist Other

41. Availability

42. Price

43. Service

45. Further Questions? Thank you for your attention and participation today!

46. Coming soon via Survey Monkey Did this webinar: Provide you with a good working understanding of sustainability in the food retail sector? Identify key sustainability issues specific to your product category? Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products?

47. Contacts for more Information

48. Living Our Values Five Winds is a Carbon Neutral Company and follows a Sustainable Purchasing Policy