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1 Sustainability in Arla Foods Innovationsfondens InnoTalk Hanne Søndergaard, EVP Marketing, Innovation, Communication and Sustainability 19 November 2019

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Sustainability in Arla FoodsInnovationsfondens InnoTalk

Hanne Søndergaard, EVP Marketing, Innovation, Communication and Sustainability

19 November 2019

Our sustainability strategy supports the realisation of the UN Sustainable Development Goals

Improving the environment for future generations

Increasing access to healthy dairy nutrition & inspiring good food habits

Arla Code of ConductOur responsibility throughout the value chain

3

We are stepping up our commitments on sustainability

Note: 2030 targets are committed with: -30% CO2e reduction in 2030 under the Science Based Targets (offsetting not permitted) and -50% internal waste in kg under Champions 12.3.

-30%100%

Recyclable packaging

2025

-30%-30%

CO2e (Science based

target)

2030

-30%-50%

Food Waste in kg(Champions 12.3)

2030

2025 2030 2050

CO2eOther KPIs

Externally communicated ambitions

Overall plan | We have established 2025 roadmaps across the value chain, focusing on 8 workstreams

2025 ROADMAP

+

Operations Logistics Packaging

Food Waste Health & inspiration Int. Dairy Devt.

Motivate and educate Arla farmers to more sustainable farming

practices

Optimise energy use and increase share of renewable energy

Optimise routes, introducing alternative fuels and piloting trucks of the future

Optimise packaging types to reduce climate impact and increase recyclability

Limit internal waste and help consumers to reduce waste in own homes

Support consumers in choosing a healthy

and sustainable diet

Support development of local dairy production in international markets

Farm

Communication

Drive awareness through communication across company, brand & market level

Consumer communication in Sweden and DenmarkActively communicating concrete actions

Reducing the CO2e foot print on farmSpecific advice to farmers to reduce CO2e emissions

Examples:• Less waste from silage storage• Increase forage digestibility• More fatty acids in the feed ration (rape

seed)• Reduce protein in feed• Monitor feed use to optimise feed supply• Less kg N/hectare• Precision application of fertilizer• Regular soil sampling to target nutrient

application• Acidification of slurry• ……• ……

Climate check

The Arla Farm 2050Our vision for farming 2050 and the corresponding research requirements

Resourceful farmers

-30%Data and technology

driven

Socially integrated

-30%More Nature -30%

Net zero climate impact -30%

Clean air and water -30%

High Animal welfare

• Education• Finance• Insurance

• Predictive• Integrated• Holistic

• Transparency• Integration

-30%

• Metrics• Resilience• Efficiency

• Feed• Rumination• Energy

• Closed loop• Precision

• Genetics• Practices• Prevention

For more information, please contact

22 November 20198

Hanne Søndergaard

[email protected]

89381050

Thank you