Climate Change

We recognize that climate change is one of the greatest environmental challenges facing our planet today, and we are committed to doing our part to address this issue. We have taken significant steps in developing a basis for implementing a comprehensive greenhouse gas (GHG) management strategy, one that focuses on reducing energy use, improving energy efficiency and using alternative energy sources. To understand our impact, we conducted our first GHG emissions inventory in fiscal year 2007. These data provide a baseline upon which we can set reduction goals, track our progress and communicate our results. We also began participating in several national voluntary programs that provide a recognized framework for measuring and communicating our progress. These include the Carbon Disclosure Project, U.S. EPA’s Climate Leaders Program, U.S. EPA’s Energy Star Program and U.S. Climate Partnership Association. Finally, in fiscal year 2009, we will establish a corporate GHG reduction goal against which we will track progress going forward.

To manage our GHG and energy management program, we have convened a multidisciplinary team comprising employees from our Continuous Improvement, Engineering and Environment, Health and Safety departments. This team is responsible for conducting energy assessments in our manufacturing facilities, identifying energy efficiency projects, evaluating emerging technologies and analyzing energy use forecasts.

Our initial steps have included completion of our GHG inventory and carbon footprint using the World Resource Institute (WRI) GHG Protocol. ConAgra Foods® inventory includes all major identified sources of GHGs, including CO2, SF6, HFCs, PFCs, N2O and CH4. As with any large organization, our GHG inventory is dynamic and evolves as our business structure changes. Given the significant organizational changes through acquisitions and divestitures during the past several years, fiscal year 2007 data is most accurate and verifiable. ConAgra Foods now has established management processes to update this inventory on an annual basis.

Understanding ConAgra Foods Carbon Footprint

The ConAgra Foods carbon footprint in fiscal year 2008 (June 2007 - July 2008) was approximately 2.0 million metric tons. Using the WRI GHG Protocol and Environmental Protection Agency's Emissions & Generation Resource Integrated Database (eGRID) model, we've calculated our 2008 baseline carbon footprint including all Scope 1 and Scope 2 emissions for all ConAgra Foods manufacturing facilities where we have operational control. Approximately 57 percent of our reported emissions come from direct sources (Scope 1), including on-site fuel use, fugitive process emissions, transportation fleet and other miscellaneous sources. The remaining 43 percent of our reported emissions are from purchased electricity (Scope 2). We recognize that in addition to this, Scope 3 emissions associated with our supply chain, product retail distribution and consumer use represent a significant portion of our overall carbon footprint. In the next 18 months, we are committed to further analyzing emissions associated with this part of our business.

Transportation

The transportation of goods from suppliers to manufacturing plants to distribution centers and to customers also contributes to the ConAgra Foods environmental impact. As a result, the responsibility of reducing fuel consumption and associated carbon emissions is one that we share with our suppliers, manufacturing partners, distributors and customers. Our transportation footprint includes a diverse mix of fleets comprised of railcars, intermodal carriers, trucks and ocean freights. We primarily rely on contracted transportation services to meet the inbound and outbound transportation needs of our products. However, ConAgra Foods distribution company, J.M. Swank , owns and operates a private fleet that services other segments of the food processing industry. For both contracted and owned fleets, we are focused on improving efficiency in all modes of transportation. This includes a variety of initiatives, ranging from the use of auxiliary power units (APUs) to cut emissions during idling, to modifying the shape, size and orientation of our product packaging to maximize pallet efficiency (see sidebar). We will continue to evaluate our transportation program to identify opportunities to better improve the efficiency of our own fleet and partner with our contractors to reduce the impact of their services.

The data presented above includes information for all owned fleets, as well as the majority of our contracted carriers (where data was available). Approximately 3 percent of the reported emissions are derived from owned fleets; the remaining are categorized as Scope 3 emissions.

Responsible Sourcing to Mitigate Climate Change

ConAgra Foods is a member of the Roundtable on Sustainable Palm Oil, an organization dedicated to promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders. As a company, we are committed to the responsible sourcing of this raw material and have set a target for 100 percent sourcing of palm oil from RSPO sustainable sources by 2015.* This action will help create a sustainable market for palm oil and prevent the deforestation of lands for purposes of developing new palm plantations.

 “CargoQuilt” Reduces Reliance on Carbon Dioxide Cooling

ConAgra Foods Lamb Weston® frozen potato business uses CargoQuilt® blankets, which act as a barrier to heat transfer, to keep products cool during interplant truck transfers. Following a multi-year prototype study to prove effectiveness, 18 CargoQuilt blankets were installed to replace carbon dioxide as a cooling agent, reducing carbon emissions by more than 2,500 metric tons in fiscal year 2007 and each year thereafter.

Perfect Pallets

ConAgra Foods “Perfect Pallet” initiative optimizes pallet efficiency by assessing product packaging size, shape and orientation. This allows the company to use fewer pallets and stretch wrap, decrease the use of forklifts during staging and loading, and improve loading and transportation efficiency. The result is significantly less solid waste and fewer GHG emissions. For example, in fall 2008, we redesigned the packaging for Orville Redenbacher’s® and ACT II® branded popcorn to remove half an inch from the height of the cartons. This seemingly minor change in product packaging improved pallet efficiency by 25 percent, reducing Scope 3 carbon dioxide emissions by more than 2 million pounds.

* To deliver this target, ConAgra Foods will be dependent upon widespread take up of certification at plantation level and adoption of certified sustainable palm oil sourcing by the companies that provide our raw materials and ingredients.