#1ABF Investor Briefing on Environmental Factors Wednesday, 18th May 2022 Associated British Foods plc#2Introduction#3George Weston Chief Executive, Associated British Foods plc Associated British Foods plc#4Efficiency and enablement 4 20 AND 081 9.0+ NA LET ROAL, an ABFI joint venture company, Finland ABF Investor Briefing on Environmental Factors roal ta Riipinen Introduction ď Associated British Foods plc#5Governance and strategy Illovo Sugar Africa, Nchalo, Malawi LO PLO OF 5 ABF Investor Briefing on Environmental Factors AB Mauri, Turkey F 3M ROAL, an ABFI joint venture company, Finland Primark store, Sicily, Italy PRIMARK Introduction PRIMARK Associated British Foods plc#6Governance framework 6 ABF Investor Briefing on Environmental Factors Annual business reviews Detailed risk reviews Continuous oversight and support GROCERY 自 SUGAR GROCERY ABF Board AGRICULTURE 5 BUSINESS SEGMENTS DIRECTOR OF LEGAL SERVICES AND COMPANY SECRETARY ENVIRONMENTAL H&S DEI PEOPLE SUGAR INGREDIENTS MATERIAL RISKS GROUP DIRECTOR OF CORPORATE RESPONSIBLITY AGRICULTURE CHIEF PEOPLE AND PERFORMANCE OFFICER INGREDIENTS RETAIL 5 BUSINESS SEGMENTS RETAIL Introduction Associated British Foods plc#7Specific actions, measurable outcomes 7 PRIMARK Primark store, Bilbao, Spain Riverside Glasshouse, Wissington, UK ABF Investor Briefing on Environmental Factors PRIMARK A Jordans Farm Partnership farm, UK ROAL, an ABFI joint venture company, Finland 28533 Introduction Associated British Foods plc#8Net zero by 2050 or sooner 8 Bioethanol, Wissington, UK ABF Investor Briefing on Environmental Factors Introduction Associated British Foods plc#9Our focus 9 Illovo Sugar Africa, Dwangwa, Malawi ABF Investor Briefing on Environmental Factors Introduction Associated British Foods plc#10John Bason Finance Director, Associated British Foods plc Associated British Foods plc#11Agenda GHG emissions and carbon enablement Emissions AB Sugar British Sugar Carbon enablement TCFD Biodiversity and ecosystem protection Ecosystem protection and soil health Water stewardship Plastics and packaging Short break then Q&A 11 ABF Investor Briefing on Environmental Factors A Jordans Farm Partnership farm, UK Introduction Associated British Foods plc#12GHG Emissions and Carbon Enablement#13Paul Lister Director of Legal Services and Company Secretary, Associated British Foods plc Associated British Foods plc#14Scope 1 and 2 GHG emissions ABF Group total Scope 1 and 2 2015-2021 14 LO mmtCO₂e 5 4.5 3.5 3 FY2016 ABF Investor Briefing on Environmental Factors FY2017 FY2018 FY2019 Financial Year FY2020 FY2021 GHG Emissions and Carbon Enablement Scope 1 and 2 emissions combined (mmtCO₂e) Associated British Foods plc#15Scope 1 and 2 GHG emissions ABF Group total Scope 1 and 2 2015-2021 15 LO mmtCO₂e 5 4.5 3.5 3 FY2016 ABF Investor Briefing on Environmental Factors FY2017 FY2018 FY2019 Financial Year FY2020 FY2021 I I T 1 20 19 18 17 16 15 14 13 12 GHG Emissions and Carbon Enablement £GBP ABF Group revenue (£bn) Scope 1 and 2 emissions combined (mmtCO₂e) Associated British Foods plc#16Scope 1 emissions By ABF division: 2021 16 1,883 (77%) ABF Investor Briefing on Environmental Factors '000 tonnes CO₂e 274 (11%) 222 (9%) 51 (2%) 20 (1%) GHG Emissions and Carbon Enablement Sugar Grocery Ingredients Agriculture Retail Associated British Foods plc#17Scope 2 emissions By ABF division: 2021 17 117 (16%) 99 (14%) 32 (4%) ABF Investor Briefing on Environmental Factors '000 tonnes CO₂e 218 (31%) 246 (35%) GHG Emissions and Carbon Enablement Sugar Grocery Ingredients Agriculture Retail Associated British Foods plc#18Energy consumption Total energy use (GWh) by ABF division 18 17,950 (82%) C Energy - GWh ABF Investor Briefing on Environmental Factors 1,558 (7%) 1,779 (8%) 241 (1%) 461 (2%) GHG Emissions and Carbon Enablement Sugar Grocery Ingredients Agriculture Retail Associated British Foods plc#19Energy consumption 2021 energy use by source 19 11,856 (54%) O Energy - GWh ABF Investor Briefing on Environmental Factors 5,947 (27%) 1,918 (9%) 1,706 (8%) 358 (2%) 205 (1%) GHG Emissions and Carbon Enablement Renewables (biomass) Natural gas Solid fuels (coal) Purchased electricity Liquid fuels Imported Steam Associated British Foods plc#20Renewable energy: export to national grids ca.92% of energy from biomass used within ABF businesses ● ● ● ● High degree of energy self-sufficiency, especially AB Sugar Significant electricity exporter to national grids 2021: Total 910 GWh AB Sugar 855 GWh AG Agri 47 GWh ABFI 7 GWh 20 - 910 GWh equivalent to 13% total electricity consumption in Tanzania* 25% total South Africa solar PV sector* Total electricity exported equivalent to 53% of total ABF Group purchased electricity use in 2021 *International Energy Agency ABF Investor Briefing on Environmental Factors Bagasse at Illovo Sugar Africa, Nchalo, Malawi GHG Emissions and Carbon Enablement DE Associated British Foods plc#21Renewable energy: purchased energy Renewables 29% of power generation globally* Encourage renewables transition where operationally and commercially feasible 2030: ca.39% electricity purchased by ABF in countries with >50% renewable energy** ● ● *International Energy Agency **International Renewable Energy Agency (IRENA) 21 ABF Investor Briefing on Environmental Factors GHG Emissions and Carbon Enablement Associated British Foods plc#22Scope 3 ● ● 22 Scope 3 upstream the main focus Primark predominant source of Scope 3 upstream emissions for ABF: ca.100 suppliers account for large majority of emissions Implementation of energy efficiency programmes Transition to renewable energy on-grid and off-grid Net reduction in direct and indirect emissions No need for carbon offsets Analysis of other businesses underway: focus on AB Sugar, Grocery and AB Agri ABF Investor Briefing on Environmental Factors Primark Sustainable Cotton Programme, India GHG Emissions and Carbon Enablement Associated British Foods plc#232030 Targets ● ● ● ● Primark: 50%, all 3 Scopes, 2018 baseline AB Sugar: 30%, Scope 1 & 2, 2018 baseline UK Grocery: 50%, all 3 Scopes, 2015 baseline Twinings carbon-neutral Scope 1, 2 and 3 upstream and transportation Total ABF Scope 1 and 2 emission reductions: 32% lower by 2030 against 2018 baseline >37% lower over 2015-2030 period 23 - ABF Investor Briefing on Environmental Factors Vivergo, Hull, UK PRIMARK Primark store, Rome, Italy GHG Emissions and Carbon Enablement CAD00 Associated British Foods plc#24Implied Temperature Rise (ITR) ● ● ● ITR new metric Compares company GHG reduction targets with global temperature pathways Modelling is complex, includes multiple assumptions ABF and external analysis: ABF ITR <1.8°C In line with Paris Agreement 24 ABF Investor Briefing on Environmental Factors AB Sugar, China Primark supplier factory, China E GHG Emissions and Carbon Enablement AB Mauri, St. Louis, US Primark store, Posnania, Poland Associated British Foods plc#25Net zero by 2050 or sooner 25 ABF Investor Briefing on Environmental Factors GHG Emissions and Carbon Enablement Associated British Foods plc#26Mark Carr Group Chief Executive, AB Sugar Associated British Foods plc#27AB Sugar value chain 27 Our Raw Materials Grown Cane and Beet Crop Contracting Fuel/Energy Purchasing ABF Investor Briefing on Environmental Factors £ GO Sugar Animal Feed A Biofuels GHG Emissions and Carbon Enablement Power Generation Our Renewable Product Portfolio Chemical/Technology Products Associated British Foods plc#28AB Sugar GHG emissions ● 28 2017-18 baseline reported emissions Scope 1: 2,314 ktCO₂e Scope 2: 234 ktCO₂e Scope 3 (transportation/distribution): 238 ktCO₂e ABF Investor Briefing on Environmental Factors 37% 7% 9% 24% GHG Emissions and Carbon Enablement British Sugar Illovo Vivergo AB Sugar China Azucarera Other 11% 12% Associated British Foods plc#29AB Sugar GHG emissions Emissions by activity 29 50% 26% 1% ABF Investor Briefing on Environmental Factors Factory Farm Transportation Water treatment Bioethanol HQ/Other 8% 8% 7% Emissions by value chain 17% O 55% GHG Emissions and Carbon Enablement 1% Sugar Bioethanol Animal feed Exported electricity HQ/Other 17% 10% Associated British Foods plc#30Context: UK gas prices импивованили www ww 1998 30 UK natural gas price: 1995-2022 2002 2006 2010 Year ABF Investor Briefing on Environmental Factors 2014 Daily peak 7th March: 538p 2018 * 2022 300 250 200 150 100 50 pence/therm 300 250 200 150 100 50 T T 2022 UK natural gas futures: June 2022-October 2028 2023 2024 *ERCE UK Natural Gas Futures Curve 2025 GHG Emissions and Carbon Enablement Year 2026 2027 2028 Associated British Foods plc#31Context: carbon pricing 31 €/tonne CO₂e 100 80 60 40 20 0 vamm EU Emissions Trading Scheme ABF Investor Briefing on Environmental Factors yu GHG Emissions and Carbon Enablement 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year Associated British Foods plc#32AB Sugar 2030 business plan 32 British Sugar, Wissington, UK ABF Investor Briefing on Environmental Factors WHITE PAN 5 HET Wat GHG Emissions and Carbon Enablement Associated British Foods plc#33AB Sugar 2030 Business Plan: commercially attractive ● ● ● 33 Already completed: 10% GHG reduction against 2017-18 baseline Project pipeline: further 20% GHG reductions by 2030 Assumptions: 60p/therm UK NBP, £50/t UK ETS >200 ktCO₂e reduction achieved at zero/low capex >500 ktCO₂e reduction: up to £100m cumulative capex Affordable and commercially attractive projects: all >15% ROI ABF Investor Briefing on Environmental Factors % Return ktCO₂e 50 40 30 20 10 0 700 600 500 400 300 200 100 0 Total GHG emissions reductions by EBIT return 0 100 150 200 250 300 350 400 ktCO₂e Cumulative GHG reduction capex to 2030 0 50 10 GHG Emissions and Carbon Enablement 20 30 40 50 60 70 80 90 100 110 £million 450 EBIT/CAPEX (%) Zero Capex 500 550 600 650 Associated British Foods plc 15#34Azucarera pulp drying Azucarera switch from gas to solar for pulp drying 2015-2021: ● 34 Average Scope 1 emissions reduced by 25% per year Total emissions averted to date ca.104 ktCO₂e ABF Investor Briefing on Environmental Factors Solar pulp drying at Azucarera, Toro, Spain 08659 HARRAGAR 240-31-07 36 GHG Emissions and Carbon Enablement Associated British Foods plc#35Vivergo Largest bioethanol plant in UK, one of largest in Europe ● ● ● 35 Largest single-source UK animal feed supplier Vivergo bioethanol in E10: Averts >500 ktCO₂e UK vehicle emissions per year Important sustainable and domestic UK energy source ABF Investor Briefing on Environmental Factors Vivergo, Hull, UK GHG Emissions and Carbon Enablement P Associated British Foods plc#36Long-term value creation 36 British Sugar, Newark, UK ABF Investor Briefing on Environmental Factors HOME GROWN-SUGAR- OF APOLO GHG Emissions and Carbon Enablement Associated British Foods plc#37Paul Kenward Managing Director, British Sugar Associated British Foods plc#38So much more than sugar 38 UNLOADING/STORAGE DRY SCREEN MIX Topsoil WASH AND SCREEN CLEANING ABF Investor Briefing on Environmental Factors 8 Stones Animal Feed SAMPLING PULP PRESSING SLICING ANAEROBIC DIGESTION PLANT (BURY) WEIGHING DRYING & PELLETING Limestone Digestate Electricity ******* DIFFUSION DRY LIME PRESS Limex Sugar Beet LIME PURIFICATION Sugar LIME KILN MILK OF LIME TANK THICK JUICE STORAGE IIII SCREEN & PACK Raffinate Betaine STEAM Fuel ------ CHP PLANT Bioethanal 10 EVAPORATION FILTER WATER (UNTREATED): CRYSTALLISATION & SEPARATION RESIN SEPARATION ELECTRICITY METHANE CO2 FERMENT & DISTILLATION Vinasse LOW TEMPERATURE HEAT CO2 WATER (TREATED) WATER ANAEROBIC DIGESTION (BURY, NEWARK, WISSINGTON) HORTICULTURE (WISSINGTON) Horticulture Electricity GHG Emissions and Carbon Enablement 19*** RIVER Associated British Foods plc#39Continuous improvement Year-to-year variations depending on crop yields and growing conditions ● ● 39 Significant downwards trend over time as a consequence of: Continuous process improvement Analysis of energy use Energy efficiency and fuel substitution capex ABF Investor Briefing on Environmental Factors GJ per tonne sugar 1200 1100 1000 900 800 700 600 500 400 T 80-81 82-83 84-85 Energy consumption per tonne: 1980-2021 86-87 88-89 90-91 92-93 48% reduction 1980 vs 2021 94-95 97-97 98-99 GHG Emissions and Carbon Enablement 01-02 Years 02-03 04-05 06-07 60-80 10-11 12-13 14-15 16-17 18-19 Associated British Foods plc 20-21#40Continuous improvement ● ● ● ● 40 Snapshot from single year's business plan Current business plan: 12 Performance Improvement Projects underway across 4 sites >40 ktCO₂e per year reduction Split between 40% process optimisation, 30% energy efficiency, and 30% switch from coal to gas ABF Investor Briefing on Environmental Factors British Sugar, Wissington, UK GHG Emissions and Carbon Enablement PEEZD Associated British Foods plc#41Commercial advantage ● ● ● 41 Customers focused on ESG Traceable and local FY20-21: 34% total B2B sales to customers requiring details of GHG reduction plans Attractive sustainability credentials: more volume at higher prices ABF Investor Briefing on Environmental Factors TRACTOR RED BY APPOINTMENT TO HM THE QUEEN MANUFACTURERS OF BRITISH BRITISH SUGAR plc PETERS Silver spoon HOUGH GHG Emissions and Carbon Enablement ER 83 GROWN IN Britain CERTIFIED STANDARDS SUPPORTING OUR FARMERS Granulated on everyday of Am FOR YOUR TA-DAH! SUGAR Associated British Foods plc#42Beyond 2030 Focus on energy efficiency and emissions reduction post-2030 Reliant upon UK national grid Green hydrogen/electrification: require infrastructure investment, UK Government policy decisions Optimistic on outcomes, but detail needed now ● ● ● ● 42 ABF Investor Briefing on Environmental Factors High pressure gas main compound, Derbyshire, UK GHG Emissions and Carbon Enablement Associated British Foods plc#43Katharine Stewart Group Corporate Responsibility Director, Associated British Foods plc Associated British Foods plc#44AB Enzymes ● ● 44 AB Enzymes an ABFI company Extensive molecular biology and biochemistry R&D expertise >625 active patents/patent applications ABF Investor Briefing on Environmental Factors ROAL, an ABFI joint venture company, Finland GHG Emissions and Carbon Enablement Associated British Foods plc#45AB Enzymes: cotton bio-polishing Bio-polishing cotton, 50°C down to 30°C Energy efficiency gain 350KWh per 1 tonne processed 364kg CO₂e averted per 1 tonne processed Asia total cotton volumes estimated 13.6 mmt per year Bio-polished: estimated at ca.1.5 mmt per year Analysis supported by Climate Partner ● ● ● Potential to achieve ca.600 ktCO₂e averted per year 45 ABF Investor Briefing on Environmental Factors GHG Emissions and Carbon Enablement Associated British Foods plc#46AB Enzymes: detergents ● ● 40°C down to 30°C Energy efficiency gain 260kwh per 1,000 washes Higher CO₂e averted in markets with high level of coal in powergen 46 119kg CO₂e averted per 1,000 washes based on DE/AT/CH region powergen data ca.630 ktCO₂e averted as modelled assumption based on global sales ABF Investor Briefing on Environmental Factors GHG Emissions and Carbon Enablement Associated British Foods plc#47AB Enzymes: carbon averted ● Two examples: >1.2 mmtCO₂e averted Significant impact from only two products within just one ABF business Equivalent to ca.40% of total ABF Group Scope 1 and 2 emissions in 2021 47 ABF Investor Briefing on Environmental Factors AB Enzymes, Darmstadt, Germany GHG Emissions and Carbon Enablement 11 Nota Associated British Foods plc#48AB Agri Intellync Farm Footprints on-farm emissions measurement system ● ● ● Strong correlation between livestock health, farm efficiency and GHG impact British Sugar beet pulp ca.75% lower embedded carbon than imported soya* Imported soya bean hulls: 1,824 kgCO₂e/tonne product Sugar beet pulp: 460 kgCO₂e/tonne product *Global Feed Lifecycle Assessment Institute (GFLI) 48 ABF Investor Briefing on Environmental Factors AB Agri customer farm, North Yorkshire, UK GHG Emissions and Carbon Enablement Associated British Foods plc#49Carbon enablement 49 Jer eppendorf eppendorf ABF Investor Briefing on Environmental Factors 06 FlexCycler ROAL, an ABFI joint venture company, Finland eppendorf FlexCycler eppendorf BT GHG Emissions and Carbon Enablement Associated British Foods plc#50Protecting and creating value through transition 50 Riverside Glasshouse, Wissington, UK ABF Investor Briefing on Environmental Factors GHG Emissions and Carbon Enablement Associated British Foods plc#51TCFD focus areas ● ● ● ● ● ● 51 AB Sugar, Primark, Twinings 73% of Group adjusted operating profit, ca. 70% of Scope 1 and 2 emissions Transition factors Physical risk factors Supply chain as well as own operations Analysis supported by South Pole ABF Investor Briefing on Environmental Factors TRENDING TRENDING SENDING PHY MEMBANT WOMENS Primark store, Rome, Italy British Sugar, Wissington, UK GHG Emissions and Carbon Enablement R Associated British Foods plc#52Transition to 2030: AB Sugar Emissions reduction plans: affordable and commercially attractive ● ● ● 52 Long track record of process optimisation and energy efficiency Increase in cost of carbon pricing mechanisms: no material impact on Group operating profit Transition to net zero presents significant opportunities ABF Investor Briefing on Environmental Factors BMA DY British Sugar, Wissington, UK GHG Emissions and Carbon Enablement ETING Associated British Foods plc#53Transition to 2030: Primark Primark Cares: modest and manageable increase in costs net of mitigating actions ● ● 53 Margin guidance on Primark Cares unchanged Firmly believe customers will recognise Primark sustainability commitment and respond positively ABF Investor Briefing on Environmental Factors P R S Primark Cares in-store installation, Germany pende inen tkleider e Zuku Hier kannst du Altkleider oder textilien recyceln, ganz gleich von welcher Marke oder in welchem Zustand GHG Emissions and Carbon Enablement 17 Associated British Foods plc#54TCFD physical risk: concepts and frameworks Global average surface temperature change 54 (°C) 6 4 2 0 -2 2000 ABF Investor Briefing on Environmental Factors 2030 2050 Yea 2100 GHG Emissions and Carbon Enablement RCP8.5 RCP2.6 Associated British Foods plc#55Physical risks to 2030: British Sugar Warmer, wetter winters in UK by 2030 Yields c.8% higher under both RCP pathways Increase is smaller than some year-on-year variations over recent decades ● ● ● ● 55 Warmer conditions increase crop disease potential Strong capability in developing solutions to mitigate disease impact ABF Investor Briefing on Environmental Factors GHG Emissions and Carbon Enablement Associated British Foods plc#56Physical risks to 2030: Illovo Increased risk of weather volatility Illovo already building capability to deal with increasing risks Variations between two models used ● ● ● 56 Worst-case scenario less than year-on-year crop yield variations already experienced by Illovo ABF Investor Briefing on Environmental Factors GHG Emissions and Carbon Enablement Associated British Foods plc#57Retail: Primark ● ● 57 Primark TCFD focus: Cotton yields Coastal flooding impact in Bangladesh and China Cotton 57% of Primark total garment fibre mix Bangladesh 22% of products sold by Primark ABF Investor Briefing on Environmental Factors Primark Sustainable Cotton Programme, India GHG Emissions and Carbon Enablement Associated British Foods plc#58Physical risks to 2030: cotton Primark Sustainable Cotton Programme: Majority of all Primark global cotton procurement by 2030 ● ● ● 58 Smallholder support improves yields, reduces water and chemical fertiliser usage Extreme temperatures, heavy rainfall, timing and duration of monsoon season Minimal (0 to -4%) negative effect on yields under RCP2.6 and RCP8.5 Well within current year-on-year variations Working with smallholders to mitigate effects ABF Investor Briefing on Environmental Factors Pakistan GHG Emissions and Carbon Enablement India Associated British Foods plc#59Physical risks to 2030: Bangladesh garment manufacturing sector Greater Dhaka region exposed to coastal flooding Authorities well aware, focused on infrastructure investment to build resilience ● ● ● 59 Suppliers taking action, contingency planning Primark structural integrity programme: Beginning later in 2022, regular evaluation to assess flood risk exposure Led by well-established local Primark team in Dhaka Coastal flooding risk for container freight, port facilities: to follow ABF Investor Briefing on Environmental Factors Primark supplier factory, Bangladesh GHG Emissions and Carbon Enablement EXIT CRED Associated British Foods plc#60Physical risks to 2030: Bangladesh garment manufacturing sector Analysis based on 10, 25, 50 and 100-year floods Focus on 100-year coastal flooding as the most destructive risk ● ● 60 1997 baseline using historical data: 4.4% of order units at risk 2030 RCP4.5 and RCP8.5: 5.0% of order units at risk Very manageable within Primark supply chain, not material risk for Group ABF Investor Briefing on Environmental Factors Galbandha Bogra Bangladesh Dhaka region Jamalpur Faridpur Golpalganj Bagerhat K² Barisal Barguna Brahmanbaria Comilla Chandpur Bhola Habiganj GHG Emissions and Carbon Enablement Feni Chittagong Primark supplier factory Associated British Foods plc#612030 to 2050: the long-range view 61 Illovo Sugar Africa, Eswatini ABF Investor Briefing on Environmental Factors GHG Emissions and Carbon Enablement Associated British Foods plc#62Biodiversity and Ecosystem Protection#63Biodiversity Ecosystem protection and soil health Water stewardship Plastics and packaging ● ● 63 ABF Investor Briefing on Environmental Factors A Jordans Farm Partnership farm, UK Biodiversity and Ecosystem Protection Associated British Foods plc#64David Webster Director of Sustainability and External Affairs, UK Grocery Associated British Foods plc#65Our approach Wide range of crops and agricultural environments Ecosystem protection measures reflect localised factors Following development of: Taskforce on Nature-related Financial Disclosures (TNFD) ● ● 65 UN Global Biodiversity Framework Balance food security with environmental stewardship ABF Investor Briefing on Environmental Factors Oat crop, UK A tea plantation, China Biodiversity and Ecosystem Protection Illovo Sugar Africa, South Africa A Jordans Farm Partnership farm, UK Associated British Foods plc#66Leveraging brands to support wildlife Jordans Farm Partnership Jordans Cereals supported ecosystem diversity since 1984 Partnership: Jordans, LEAF, The Wildlife Trusts, The Prince's Countryside Fund At least 10% farmland managed for wildlife Average now 17% ● ● ● ● Seeds for Bees Jordans Cereals supporting Project Apis m. Wildflower seeds for ground cover: year-round pollinator forage ● Partnership covers 15 kha, equivalent to ca.8% total UK oats farmland 66 Contribution covers ca.750 acres, equivalent to total orchard acreage supplying Jordans Cereals with almonds ABF Investor Briefing on Environmental Factors A Jordans Farm Partnership farm, UK Seeds for Bees orchard, California, US Biodiversity and Ecosystem Protection Associated British Foods plc#67Allied Mills Wheat Sustainability Supply Project Allied Mills one of UK's largest millers Partnership with Frontier, ABF's joint venture business Focus on soil quality and health ● ● ● ● ● ● Requires crop rotation, minimal tillage >5% of farmland managed for wildlife habitats Designed to enhance broader UK wheat industry understanding 67 ABF Investor Briefing on Environmental Factors Allied Mills Sustainable Farm Project, UK Biodiversity and Ecosystem Protection Associated British Foods plc#68Westmill Sustainable Rice Programme Sustainable Rice Platform, established by UN Environment Programme On-farm training in sustainable farming techniques Outcomes to date: Water consumption: -25% On-farm GHG emissions: -48% ● ● ● - 68 Crop yields: +20% Net incomes: +38% Project scaling up: Farmers increase from 600 to 1,200 Goal: >20% of all rice purchased by Westmill to SRP standards by 2024 ABF Investor Briefing on Environmental Factors Westmill Sustainable Rice Programme, Pakistan Biodiversity and Ecosystem Protection Associated British Foods plc#69Multi-stakeholder initiatives ● ● 69 Palm: - 0.07% of total global volumes - ABF member of Roundtable on Sustainable Palm Oil (RSPO) Soya: 0.18% of total global volumes - AB Agri member of UK Roundtable on Sustainable Soya AB Agri: targeting zero deforestation across soya supply chain by 2025 ca.80% of soya bought by AB Agri in UK certified zero deforestation ABF Investor Briefing on Environmental Factors Biodiversity and Ecosystem Protection SUSTAINABLED CERTIFIED RSPO TM PALM OIL Associated British Foods plc#70Multi-stakeholder initiatives ● ● 70 Cocoa: Ovaltine contributing partner to International Cocoa Initiative Ovaltine member of World Cocoa Foundation Europe: all cocoa bought by Ovaltine is 100% UTZ Certified ABF founding and board roles: Sustainable Agriculture Initiative UN Sustainable Rice Project Ethical Tea Partnership ABF Investor Briefing on Environmental Factors World Cocoa Foundation SAI PLATFORM Biodiversity and Ecosystem Protection UTZ Certified SRP VERIFIED Ethical Tea Partnership Associated British Foods plc#71Water resource management: own operations ● ● 71 AB Sugar: 97% total ABF Group water usage (Illovo: 96%) ABF Group: 97% water abstracted from surface sources, 2% groundwater, 1% municipal 75% total water use from rain-fed/ irrigated crops ABF Investor Briefing on Environmental Factors Water abstracted per year O million m³ Biodiversity and Ecosystem Protection Sugar Ingredients Grocery, Retail Agriculture 835 (96%) 23 (3%) 6 (1%) Associated British Foods plc#72Illovo water stewardship Long-standing performance improvement programme optimising water use Continuous investment in enhanced irrigation systems: ca.82% irrigated Remainder rain-fed ● ● ● Data analytics to monitor water usage throughout value chain: 72 Potential to reduce water loss through leakage by up to 9% Potential to increase crop yields by up to 3 tonnes per hectare AB Sugar target: 30% reduction in water usage by 2030 ABF Investor Briefing on Environmental Factors Illovo Sugar Africa, Eswatini Biodiversity and Ecosystem Protection Associated British Foods plc#73AB Mauri water stewardship Comprehensive strategy to enhance water treatment processes ● ● 73 >£75m investment since 2010 Proportion of water used that is treated and returned: 2018-19: 69% 2019-20: 74% 2020-21: 79% - ABF Investor Briefing on Environmental Factors 73245 AB Mauri, Hull, UK Biodiversity and Ecosystem Protection Associated British Foods plc#74Plastics and packaging 74 ABF Investor Briefing on Environmental Factors PRIMAR A BBIWY ONGEST MADRAS THINS danse COUNTRY CRISP Biodiversity and Ecosystem Protection Associated British Foods plc#75ABF: packaging volumes by material type Paper main packaging material across ABF ● Very small-scale purchaser of plastic in global terms: 75 - 48.1kt per year Context: global single-use plastic estimated ca.130mmt per year* *Minderoo Foundation ABF Investor Briefing on Environmental Factors 21% (48.1) 31% (71.3) '000 tonnes Biodiversity and Ecosystem Protection 20% (44.8) 7% (15.5) 3% (6) Paper Plastic Glass Wood Steel/Alu Other/NA 18% (42.3) Associated British Foods plc#76Single-use plastic volumes by ABF business Primark largest user of plastic packaging followed by UK Grocery ● ● 76 Primark goal: eliminate all single-use plastic by 2027 UK Grocery businesses signatories to WRAP UK Plastics Pact ABF Investor Briefing on Environmental Factors 18% (8.7) 28% (13.3) 2% (1.4) '000 tonnes Biodiversity and Ecosystem Protection 17% (8.4) 13% (6.1) 13% (6) 9% (4.2) Primark UK Grocery ACH AB Sugar GWF Twinings Ovaltine Other Associated British Foods plc#77Our focus ● ● ● ● 77 Much higher levels of recycling/recycled content than today Low level of collection rates globally, non-existent in many developing markets Constraints on availability of food-grade recycled content at scale Flexible polymers - Low collection rates Chemical recycling technologies not yet at scale in all countries ABF Investor Briefing on Environmental Factors Biodiversity and Ecosystem Protection 44- Associated British Foods plc#78Primark ● ● ● ● 78 Goal: eliminate all single-use plastic by 2027 Plastic hangers 65.5% total volumes Move to re-use model, cardboard alternatives Hangers & on-product poly packaging: 100% recycled content >0.5bn single-use plastic units already removed to date ABF Investor Briefing on Environmental Factors UMKLEIDEKABINEN Primark store, Germany SPORT TOP Biodiversity and Ecosystem Protection Associated British Foods plc#79UK Grocery ● ● ● 79 WRAP UK Plastics Pact Circular economy for packaging 100% reusable/recyclable/compostable by 2025 Eliminate use of problematic plastics Incorporate recycled content Ambition: work in partnership across grocery value chain to create food packaging closed loop >82% of plastic packaging used in UK Grocery widely recycled/recycle-ready Increasing use of recycled content in packaging ABF Investor Briefing on Environmental Factors son's SAMSUNG ELEPHANT ATTA OVALTIN ORIGINALE ADDWATER no added pr dorset RYVITA Protein RED QUINOA & SESAME BARRA JORDANS OUNTRY CRIS LUNGTON'S SCOVADO Silver Spoon G TWININGS Earl GREY THININGS Bollerd IMA Ex Coffee JORDANS FRUSL 6 NATURAL TAHINI T 100 TWINING DETOX HARISSA s Biodiversity and Ecosystem Protection MINAT TIKKA UPA TWININGS English Breakfast thế nà SLEEP BioBlends RYVITA VEGETABLE THINS RYVITA MULTI RAIN Mazzetti RAJAH RIKA P JORDAN MORTO ARMUV viysmill 50/50 Associated British Foods plc#80Action in line with UK Plastics Pact Kingsmill ● ● ● Patak's Pappadums 30% recycled content bread bags First of its kind at scale in the world Significant supply-side constraints 80 ca.590t PVC removed In line with WRAP UK Plastics Pact commitment to eliminate problematic plastics ca.7% of total UK Grocery plastic packaging volumes ABF Investor Briefing on Environmental Factors Kingsmill NO CRUSTS NO AR PATAKS Original EST 1958 8 PLAIN PAPPADUMS LIGHT & CRISPY SURIN FIBRE LENTIL READY TO EAT RESTAURANT STYLE PAPPADUMS. Biodiversity and Ecosystem Protection 30% RECYCLED PLASTIC 50/50 great taste 2020 47 KCALS PER SLICE DIP te our CHUTNEYS and PICKLES for a perfect match as a side with your RRY: 0.5g <1% adv aptaling va Associated British Foods plc#81GWF: Tip Top Bakeries TipTop goal: 100% recyclable, reusable or compostable packaging across all businesses by 2025 Cardboard bread tags: Removes >400m plastic tags from waste ● ● 81 ABF Investor Briefing on Environmental Factors Biodiversity and Ecosystem Protection UNS Associated British Foods plc#82Conclusion Associated British Foods