TRANSFORMATION. Sustainability at Keurig Green Mountain

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1 REWING TRANSFORMATION Sustainability at Keurig Green Mountain

2 OMM UILDI NGAG to Environmental Responsibility Strong Supply Chains Our People and Communities

3 ITTED NG ING As a company founded on social responsibility, Keurig is committed to using the power of business to Brew a Better World. We do this by integrating our values in all we do, from the design of our new recyclable K-Cup pods to various programs that engage and support our people, our communities, and our supply chains.

4 Recyclable K-Cup pods are rolling off our production lines, with more available every year until we reach 100% by the end of 2020.

5 In 2016, we introduced our first recyclable K-Cup pods in the United States and Canada. Our next milestone is to convert 100% of K-Cup pods in Canada by the end of The advanced recycling infrastructure and strong interest in recycling and engagement from Canadian consumers make it a great place for our first widespread launch. We will also introduce more varieties for U.S. consumers beginning in We re converting more than 100 packaging lines across seven manufacturing facilities to produce the new pods. But we want to do more than produce a K-Cup pod that s recyclable in theory: We want our pods to be effectively recycled. That s why we also work to support and improve recycling systems. Learn more about our recyclability journey at DESIGNING FOR RECYCLABILITY by choosing a plastic for our pods that is in high demand by recyclers polypropylene (#5) IMPROVING RECYCLING SYSTEMS through investments and partnerships DRIVING CONTINUED INNOVATION to make the Keurig system as sustainable as possible by exploring advancements in packaging materials and recovery programs

6 ATA We invest over $1 million per year in recycling TA Increasing recycling access Recycling more plastic systems and education working with partners to boost community recycling. Through investments in the Closed Loop Fund and The Recycling Partnership, we ve helped contribute to the following: * 132K+ pounds of waste diverted from landfill 325K+ tons of greenhouse gas (GHG) emissions avoided 10M+ households reached to improve recycling Recyclable K-Cup pods have the same recovery potential as single-serve yogurt cups and other polypropylene #5 plastic items, but there s still more to do. We re working to make plastics recovery even more effective. * As of December 2016.

7 LYZE Promoting the use of recycled plastic Our award-winning test protocol provides insight into how items are sorted at recycling facilities. Companies and recyclers can use the information to ensure that products and packaging are not only recyclable, but also recycled. We collaborate to support a healthy end market where more recycled plastic gets reused in new, durable products, such as storage bins and outdoor furniture and maybe even in our own products one day. The more recycled plastic is used in new products, the more economic incentive there is to recover it. 95% of plastic packaging material value, equivalent to $80 $120 billion annually, is lost after only one use ** ** Ellen MacArthur Foundation, The New Plastics Economy: Rethinking the Future of Plastics, 2016.

8 From Colombia to Sumatra, our work with coffee-farming communities is integral to our success as a business. At Keurig, we support coffee farmers and their families so they can improve their livelihoods and strengthen their farms. We are building resiliency in our coffee supply chain and across all our supply chains through partnerships, engagements, and responsible sourcing practices. These efforts, in turn, lead to a stronger, more stable supply of high-quality coffee for every cup our consumers brew. Photo credit: Oscar Leiva/ Silverlight

9 We aim to improve livelihoods in our coffee supply chain through the following focus areas: Improving farming techniques Addressing local water issues and planning for changes in climate Strengthening farmer organizations

10 IMPA 7K+ people in El Salvador, Honduras, and Nicaragua are now practicing sustainable water management in their homes and on their coffee farms. Keurig purchased 203M pounds of green coffee in fiscal To us, that s 203M opportunities to improve livelihoods. This map highlights a few of the ways we partner to make an impact. 5K+ people in Nicaragua now have more stable, diverse, and nutritious diets. 125 farmers and suppliers brought together in Brazil to discuss issues such as coffee quality, water stewardship, and labor practices.

11 ACT 417K+ eople engaged to p improve their livelihoods $6.8M+ in Fair Trade social premiums delivered to Indonesian coffee farmers through our purchases. 16K+ farmer households in Uganda trained in farming techniques to improve coffee quality. Coffee sourced We focus on understanding the needs of coffeefarming communities, supporting organizations that specialize in farmer training, climate- and water-smart agriculture, food security, labor issues, and more. We are well on our way toward reaching our target of engaging 1 million people in our supply chains to significantly improve their livelihoods. To date, our partners have meaningfully engaged more than 417,000 people.

12 500+ employees sent on one of our source trips over the last two decades 55% of our employees participated in our volunteer programs, totaling more than 56,000 hours in fiscal 2016

13 Employee source trips are like the soul of the company. They show us at our best, most thoughtful, most well rounded, and most forward thinking. AMY BROSIUS, Legal Department, South Burlington, Vt. Our Company can only be successful with the engagement of our employees. We know that when people are engaged at work, they are happier in their jobs, more successful in their careers, and make more meaningful contributions to our Company and to their communities. One of the best ways to engage employees and help them understand the full impact of our business is to take them to where it all begins: the coffeelands. For 20-plus years, Keurig has been taking groups of employees to coffee-farming communities around the world. Employees get a firsthand look at where our coffee comes from, gaining a deeper connection to the people who are involved at the earliest stages of our products. The source trips, which employees often describe as life changing, alter perspectives and broaden horizons in ways that pictures and videos cannot.

14 ROG In fiscal 2016, we made strong progress toward our set of ambitious 2020 targets, including a recyclable K-Cup pod. Target: 100% of K-Cup pods will be recyclable by the end of Target: Reduce life-cycle greenhouse gas (GHG) emissions of brewed beverages by 25% vs baseline. First recyclable K-Cup pods available in All Canadian K-Cup pods will be recyclable by the end of % 25% Target: Source 100% of primary agricultural and manufactured products according to established Keurig Green Mountain responsible sourcing guidelines. Coffee traceable Coffee sustainably certified Target met! We will develop a new goal per an updated 2015 baseline while continuing to focus on operating efficiency and improved emissions measurement. Target: Engage 1 million people in our supply chains to significantly improve their livelihoods, including water security and climate resilience. People engaged 417K+ to significantly improve their livelihoods.

15 RESS Target: Engage 100% of employees to understand our vision and values and present opportunities that allow them to contribute to our targets. of employees engaged 70% in a sustainability program or education initiative. Target: Balance 100% of the water used in our 2020 brewed beverage volume in all our beverages, ounce for ounce. Target: Achieve zero wasteto-landfill at our owned and operated manufacturing and distribution facilities. 93% Manufacturing waste diversion rate (up from 88% in 2015). 97% The percentage of water we helped restore to people and nature based on the water used in our beverages in fiscal 2016 a total of 707 million gallons.

16 Fiscal 2016 Summary Report KEURIG GREEN MOUNTAIN, INC 33 Coffee Lane Waterbury, VT PHONE CONTENT BuzzWord, Inc. DESIGN Celery Design Collaborative

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