Sustainability
Report 2023.

About this report
This 2023 Summary Sustainability Report provides an update on theperformance of McCain Foods Limited (“we”, “our” or “McCain”) against
the commitments set out in our Global Sustainability Strategy. It also
includes a Deep Dive into our approach to regenerative agriculture.
Unless otherwise stated, reporting boundaries include subsidiaries
owned or controlled by McCain, excluding our transportation subsidiary
the Day & Ross Transportation Group (“Day & Ross”) and acquisitions
that we have completed within the last 24 months.
This Summary Sustainability Report is for our fiscal year ended June 30,2023 (“2023”). Our performance data tables include previous years’ data,
where relevant. All currency reported is in Canadian Dollars (“CAD”),
unless otherwise stated.
GRI – statement of use
McCain has reported the information set out in the separate GRI Content
Index, for the period from July 1, 2022 to June 30, 2023 with reference to
the GRI Standards. Our GRI Content Index uses the requirements andprinciples of ‘GRI 1: Foundation 2021’ and is available here.
External verification opinion

Contents.
A message fromour President & CEO3

Sustainability at McCain
Our business at a glance

4

Sustainability strategy

52023 sustainability
highlights

6

Deep Dive: A year in7
the life of a regenerative
agriculture transformation

Our 2023 progress

28

Smart & Sustainable
Farming29

Resource-Efficient
Operations32

Good Food

35

Thriving Communities

37

Strong Foundations39

Performance tables

42

McCain seeks external assurance of our CO2 emissions data to support
our CO2 emissions reduction strategy. The British Standards Institution(“BSI”) conducted a limited assurance assessment of our 2023 CO2emissions inventory and our alignment with ISO 14064. The latest
statement is available here, along with previous limited assurance
statements from 2017 – 2022.1

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
FarmingResource-Efficient
Operations

Good Food

Thriving
Communities

StrongFoundations

2

A message
from ourPresident& CEO.

In 2023, the impact of climate change has never been moreevident or immediate. Many of the issues that scientists
have long predicted would result from global warming are
now occurring, such as accelerated sea level rise, drought
and more intense heat waves. The Intergovernmental
Panel on Climate Change’s (“IPCC”) 2023 Synthesis Reportreiterates the severity of the situation we are in, and thecritical need for action.
At McCain, we are in a position to take action in a meaningful
way. As well as being very sensitive to weather and climate,
the food system is one of the most important levers of futurechange. Sustainability is at the heart of our purpose as abusiness: ‘Celebrating real connections through delicious,
planet-friendly food,’ and it runs through our organizational
values: Family, Authentic, Trusted and Quality.
Our goal is to help drive the transition to making our foodand agricultural systems more sustainable and resilient.
Our work on regenerative agriculture is central to ourefforts in this space. We therefore wanted to take theopportunity to provide a Deep Dive into our work in thisarea which accompanies this year’s update on our progress
across our planet-friendly strategy. In the pages that
follow you will find a detailed look at a year in the life ofa regenerative farm, based on our experiences at our Farmof the Future Canada. We hope it provides insight into thechallenges and opportunities of regenerative farming,in a practical and hands-on way.
The progress update sets out an overview of our 2023
activities against each of our four pillars of focus: Smart &Sustainable Farming, Resource-Efficient Operations, Good

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
Farming

Food and Thriving Communities, as well as the Strong
Foundations that underpin all we do.
While we recognize that there is more to be done, we arepleased to report progress across each of these areas, in linewith our commitments. There are also some achievementsof which we are particularly proud. These include theincrease in the number of our farmers who are adopting
regenerative agricultural practices (some of which we
showcase in the Deep Dive), the significant reduction
we have achieved in our Scope 1 and 2 emissions and thesuccessful development of a series of healthier productinnovations. We’re also very pleased to report an increasein the number of our employees who participated in our
Chips In Volunteering program.
As we look forward to 2024 and beyond, we know we will
face many uncertainties and challenges. But one thing iscertain: we are more committed than ever to deliver thetangible change and progress that our world so urgently
needs. This is not something we can do alone. Partnershipand knowledge are critical to move forward and transformthe food chain. We will look to stakeholders throughout
the value chain – from our farmers, to governments,
financial institutions, NGOs, suppliers, customers andother players in the food system – to collaborate on thistransformational journey.

Max Koeune,
President & CEO

Resource-Efficient
Operations

Good Food

Thriving
Communities

StrongFoundations

3

Our business at a glance.

More than

1:4

fries in the world
is a McCain
Foods fry!

More than

7M

Over

tonnes ofpotatoes

3,500
farmers

1 Agriculture

2 Procurement

3 Production

4 Packaging

We have direct relationships with over
3,500 farmers across six continents.

We also work with over
25,000 other suppliers
around the world.

We operate 53 plants globallysupported by 14 research anddevelopment facilities.

We package our French fries, potato
specialties, appetizers, entrées,vegetables, pizzas, and desserts.

53 plants

Majority
located in ruralcommunities

Sales
in over

160

More thanOver

23,000+$14B CAD

employees2

revenues2

countries

8 Consumption

7 Sales/Customers

Families everywhere share ourdelicious food during mealtimes.

We serve millions of customers
every day, in restaurants, homes,
and outlets in over 160 countries.

We distribute most of our products by truck
to local storage facilities. In some places,
we also use rail and ocean freight.

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
Farming

Contents

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President & CEO

Sustainability
at McCain

6 Transport

Resource-Efficient
Operations

5 Cold storage
On an average day, we store over
500,000 tonnes of French fries incold storage throughout the world.

Good Food

Thriving
Communities

StrongFoundations

4

Sustainability strategy.
Our Sustainability Pillars

To find out about our approach to materiality, ourstakeholder engagement process and our governancestructures, please see our 2022 Sustainability Report.

Our Commitments• Implementing regenerative agriculture practices • Investing in three Farms of the Future
Smart &
Sustainable
Farming

Safetyacross 100% of McCain potato acres by 2030

• 15% improvement in water-use efficiency• 50% absolute reduction in GHG emissions

Our Strong
Foundations

across McCain operations by 2030

• 60% intensity reduction in Scope 1 & 2 GHG
emissions and 30% intensity reduction in
Scope 3 GHG emissions by 2030

• Removing palm oil from our frying operations• Providing clear and transparent

average) in our McCain branded potato
and appetizer products by 2025

nutritional information• 100% Global Food Safety Initiative (“GFSI”)• Expanding healthier food offerings

certification at all McCain owned facilities
and tier one ingredient supplier facilities• 100% use of cage-free eggs by 2025

Security
Thriving
Communities• Improving the livelihoods of 10,000
vulnerable farmers and families by 2025

• 100% of our packaging designed tobe recyclable, reusable or compostableby 2025• 15% reduction in sodium (sales-weighted

recognize and expectfor McCain branded products by 2025

• 50% reduction in food waste intensity

in seven priority plants by 2025

• Using simple ingredients that customers
Good Foodtransfer to farmers• 15% improvement in water-use efficiency(Scope 1 & 2) by 2030, 100% renewableelectricity by 2030 and ceasing use ofcoal by 2025

• Zero waste to landfill by 2025

Ethics• Training, technology, and knowledge

leveraging collective action to advanceregenerative agriculture• 20% of all potato crops grown for McCain

ResourceEfficient
Operations

per tonne from potato farming,
storage, and freight by 2030 (Scope 3)• Developing research partnerships andin water-stressed regions by 2025
to use stress-tolerant varieties by 2025

Inclusion• 25% reduction in CO2 emissions

to showcase regenerative agriculture
practices by 2025

• Supporting farmers and families by donating• Supporting farmers and families

200 million meals to food banks and NGOs
by 2025

with 50,000 hours of employee
volunteering by 2025

Our alignment to the United Nations’ Sustainable Development Goals (“SDGs”)

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
FarmingResource-Efficient
Operations

Good Food

Thriving
Communities

StrongFoundations

5

2023 sustainability highlights.
Smart &
Sustainable Farming

Resource-Efficient
Operations

Good Food

28% of our global acreage ‘Engaged’and 51% ‘Onboarded’ on our
Regenerative Agriculture Framework

21.2% of total electricalenergy consumption
from renewable sources

New Global Clean
Ingredient Policy and Global
Nutrition Policy launched

Launched partnerships with
innovative financial solutions to
support regenerative agriculture
delivered with Rabobank, Farm
Credit Canada and NatWest

9.8% reduction of absolute CO2
emissions (Scope 1 & 2)

16.3% improvement in water-use
efficiency in priority plants$1M Future of Potato
Farming Fund launchedwith McDonald’s CanadaFirst full year of Farm of the
Future Africa completed

98.5% of paper packaging and87.8% of plastic packaging
designed to be recyclable

Water-use efficiency
improved by 9.4% (inwater-stressed regions)

Reduced waste to landfill
to 0.6% of total waste

More than 23,500 hours of
training delivered to growers
Water-stress tolerant potato
varieties increased to 21.9%of total portfolio

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A message from our
President & CEO

100% of McCain owned facilities
and 96% of Tier one ingredientsupplier facilities GFSI certified

9.5% reduction in food waste
intensity in operations

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

6.6% reduction in sodium(sales-weighted average) in
our appetizer products

Reduced the use of artificial
ingredients in our core portfolio

Strengthened internal
structure and processes

Smart & Sustainable
FarmingResource-Efficient
Operations

See our performance tables formore detail on our commitments
and our progress against them.

Thriving
Communities
17,384 hours of employee
volunteering completed

11.9 million meals donated2,716 new beneficiaries ofdevelopment programs/
partnerships reached

3 new community projects
launched to improve thelives of vulnerable farmers
and families

Received Second Harvest’s
Values Award for our work
to tackle food insecurity

Good Food

Thriving
Communities

StrongFoundations

6

A year in the life of a regenerative
agriculture transformation.
The agriculture sector and those of us
that work in it – from farmers to foodproducers to consumer brands – havea huge role to play in tackling two of
the biggest challenges facing our world.
The first challenge is ensuring we can feed a growing global
population, the other is doing so while adapting to a changing
climate that is making food production more difficult and lessreliable. At the same time, the agri-food sector is projected togenerate 196 million tonnes of greenhouse gas emissions by 2050,
which plays a significant role in accelerating this negative cycle.3
We need large-scale and high-impact interventions to addressthese interlinking challenges, and the agriculture sector has
the power and responsibility to play a major role in the solution.
Transforming the way we produce food will mean significant
but achievable adjustments to how we farm. This new approach
can broadly be called regenerative agriculture, a term that we

Contents

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President & CEO

Sustainability
at McCainat McCain define as an ecosystem-based approach to farmingthat aims to improve farmer resilience, yield, and quality by
improving and restoring soil health, water-use and quality,
enhancing biodiversity, and reducing the impact of agrochemical products on the environment. At the same time,regenerative practices can help reduce the carbon impact offarming through reduced on-farm emissions and the potential
for locking or sequestering carbon in the soil. Regenerative
practices combine traditional farming methods that are alignedwith natural processes, with new innovation, technology andmanagement practices. The aim is to produce high-quality
and reliable yields while tackling the food system and climate
challenges we face.
Adopting regenerative practices comes with challenges
and opportunities. Identifying best practices that are scalable
and easily adoptable by farmers across the world is vital.
However, this can only be achieved through collaboration –full system change involving farmers, scientists, agronomists,
educators, food producers, financers and consumer brands
all working together.

Deep Dive: A year in the life of aregenerative agriculture transformation

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McCain’s approach to regenerative agriculture
At McCain, we rely on a dependable andhigh-quality potato harvest every year.
To support this critical business need, we are among the leading global
food producers embracing regenerative agriculture. Our potato farmers– a network made up of more than 3,500 direct relationships across theworld – are vital to this transformation. By 2030, we aim to have 100% of
McCain potato acres implement our ‘Onboarding’ level of regenerative
agriculture practices, and 50% reaching the ‘Engaged’ level.4
A key tool in this ambition is our Regenerative Agriculture Frameworkthat outlines core regenerative principles and outcomes for farmers
and the food system. The Framework contains high-level pathways
for farmers to make incremental progress towards farming
regeneratively in their own specific circumstances. Throughout thistransition period, we at McCain, including our field representatives
and agronomists who are all trained in regenerative practices,support our farmers through a combination of technical, financial
and educational resources. The goal is to help farmers become
more resilient and competitive for the long term.

Our 500-acre Farm of the Future at McCain’s home in New
Brunswick, Canada, focuses on Northern hemisphere practices,while our Farm of the Future Africa, located in Lichtenburg, South
Africa, explores Southern hemisphere approaches. As well as creating
a better understanding of regenerative agriculture practices and theirimpact, both farms seek to reimagine the way we grow a potato thatis better for both farmers and the planet.
This Deep Dive highlights a year on a regenerative farm, based on ourwork at our Farm of the Future Canada but also reflecting the wider
experience of an annual regenerative farming cycle. Alongside, wehave picked out specific experiences in the southern hemisphere at
Farm of the Future Africa, as well as highlighting the perspectives andinsights from some of our research, finance, commercial and farmer
partners. With this exploration we aim to bring the regenerativetransition to life, building understanding and uptake and we invite
others to join with us in helping create the future of our food system.
Philippe Thery
Chief Agriculture Officer

Key Regenerative Agriculture Principles
Ensure farm resilience

Armour soils, preferably withliving plants

Enhance crop andecosystem diversity

Minimize soil disturbance

Reduce agro-chemical
impact & optimize water use

Integrate organic andlivestock elements

Our Farms of the Future program is another way we are supporting
the transition to regenerative agriculture. This comprises two (soonto be three) innovative farms that are helping determine, scaleand showcase best practice in regenerative farming. These farms
undertake new research and trial technologies, working with partners
to take risks, make mistakes and eventually overcome any challenges
so our farmers don’t have to. We pass on all our knowledge andoutcomes to our partners, but also more widely to the industry.

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
FarmingResource-Efficient
Operations

Good Food

Thriving
Communities

StrongFoundations

8

This Deep Dive explores
an annual regenerative
agriculture cycle basedon our work at McCain’s
Farm of the Future
Canada, but also features
insights from McCain’s
Farm of the Future Africa
and the experiences ofsome of our key partners.
Each of the six sections of the Deep
Dive, shown in the outer circle on thispage, explores a two-month period
throughout the year. The inner circleof the diagram describes some of
the key activities on the farm ineach month, which are exploredin more detail in the pages ahead.

January & February

November &DecemberProtecting the soil over winter to
set strong foundations for the year

Measuring outcomes,
innovation andfuture planning

September &OctoberHarvesting
the potatoes
and assessing
the yield• Collect data andassess progress• Farm maintenance• Plan for the future

protect the soil

• Embed covercrop seeds into
the soil during
harvest• Assess yield

A year in the lifeof a regenerative
agriculture
transformation.

•M onitorgrowing conditions• Irrigate the soil
• Livestock naturally
fertilizes fields

 lick button to goC
to specific section

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President & CEO

Sustainability
at McCain•C over crops• Choose potato
varieties

March &April

• Buy and size seeds• Prepare soil using
Controlled Traffic
Farming system

Preparing forplanting withminimum soil
disturbance• Plant potatoes
and other rotational crops• Minimally fertilize crops• Introduce livestock

July & August

May & June

Thriving biodiversity
and a focus on education

Planting season begins witha focus on optimizing inputs

Deep Dive: A year in the life of aregenerative agriculture transformation

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9

January &February

Armouring the soil with diverse
cover crops is our top priority

Protecting the soil over winter to
set strong foundations for the year
Key Regenerative Agriculture Principles

At the start of the year, harsh conditions are thedaily reality at our Farm of the Future in New
Brunswick, Canada. Extreme weather can cause
problems, and vital nutrients and organisms inthe soil can be lost if the soil is left too exposed or
allowed to erode, which can harm the potato crop.
This means we need to focus on protecting – orarmouring – the soil so that our fields are readyfor the beginning of the farming year in spring.
Our winter preparation and planning helps
ensure that when the snow melts and the soil
thaws, it is nutrient-rich, aerated and full of life,
ready for crops to be planted.

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Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

The most effective way to armour the soil
is to cover it with living plants called covercrops. These are planted in fall during thepotato harvest and help the soil stay healthy
over the colder months. Plants growing andspreading their roots into the earth helps
aerate the soil, reducing compaction andimproving water filtration. More moisture in
the soil means plants absorb more water andnutrients, resulting in higher quality crops. Less
compacted soil also reduces the need for tilling
later in the year – a process that can disturb
valuable microorganisms like fungi and release
sequestered carbon into the atmosphere, withnegative impacts for the climate. Cover crop
planting also creates a physical barrier fromwind and rain, which can otherwise cause
erosion and drain valuable nutrients, such as
nitrogen, from the soil. Even after the covercrops die, they turn into mulch on the surfaceof the soil, offering a protective barrier rightthrough to spring.

perfect conditions for microorganisms andother organic life to thrive underground.
At the same time, a wide variety of plants
and flowers attract pollinators, insects andanimals that further build the ecosystem.
This all supports the growth of our crops andmakes them more resilient to pests, disease
and the impacts of extreme weather. So, when
we plant cover crops we plant a wide variety:28 varieties to be precise.

Our cover crops also help support andstimulate a rich and diverse ecosystem acrossthe farm. Having a variety of plants in the soil
encourages a mix of nutrients that create theSmart & Sustainable
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Operations

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Cover crops used at Farm of the Future Canada
Category of cover crop and its benefit
Legumes: Legumes are highly effectiveat pulling nitrogen into the soil fromthe air while controlling for erosion
and increasing soil organic matter,
which acts as a reservoir for waterand nutrients.

Species
Alfalfa
Frosted berseem clover
Red clover
Faba beans
Birdsfoot trefoil
Black forage peas
Chickling vetch
Pearl millet
Sorghum sudan grass

Grasses and Cereals: Grasses andcereals have extensive root systems
that effectively retain nitrogen. They
also create large amounts of biomass,
suppressing weeds and increasing soilorganic matter.

Japanese millet
Corn
Timothy
Arsenal meadow grass
Brome grass
Meadow fescue
Perennial ryegrass
Orchard grass
Oats
Brown mustard
Fodder rape

Brassica: Brassicas are very goodat preventing soil borne pests
and diseases.

Groundbreaker radish
Daikon radishes
Kale
Oilseed radish
Purple top turnip
Phacelia (Borage family)

Other Species:

Buckwheat (Knotweed family)

Farm of the Future Africa:
Cover crops
Regenerative farming principles must be adapted
to the local context. The work underway at our
Farm of the Future Africa is crucial for generatingknowledge around how these principles come tolife in the Southern hemisphere.
In South Africa, cover crops play a vital role inarmouring the soil to protect against extreme heatand drought. The cover crops we select at Farmof the Future Africa help limit erosion, increasewater infiltration and retention and provide natural
fumigation of soil-borne pests. We also pick species
that provide good manure, with the mulch they
produce being used to improve our irrigation
systems, minimizing evaporation and conserving
moisture. Current cover crops include cereals,
legumes, brassicas and borage, all of which help
the soil to retain vital nutrients, increase organic
matter and promote biodiversity. We have also
been experimenting with crops which have specificfunctions. For example fodder radish can help tohold nutrients like nitrogen and phosphorous in
the soil while also reducing root knot nematodes,
a common soil-borne pest.

Sunflowers (Sunflower family)
Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

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FarmingResource-Efficient
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Locking carbon into the soil

March & April
Preparing for planting with minimum
soil disturbance
Key Regenerative Agriculture Principles

Buying seeds and preparing the farmfor growing season
As spring arrives on the farm, our preparations
for planting pick up speed. One important task
is to select and buy potato seeds. Potatoes
are highly susceptible to drought and waterstress as their shallow roots have a limited
capacity to store water. That’s why choosing
the right varieties is vital. On our Farm of the
Future Canada we plant three varieties ofpotatoes: King Russet, Caribou Russet andRusset Burbank (see our spotlight on waterstress tolerant potato varieties). The firsttwo are particularly tolerant to water-stress,

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allowing us to maximize our water efficiency
without risking the yield. Once our varieties
are selected and the seeds are purchased, we
use a machine to separate them into different
sizes. This helps optimize our precision sowing
processes for similarly-sized seeds and ensuresthat plants will eventually grow in a relatively
uniform way.

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

The preparation we have done over fall andwinter by armouring the soil with cover crops
helps minimize the extent to which we needto disturb the ground in spring – the time
when most conventional farms would needto undertake significant tilling to prepare
for planting. One of the main benefits tominimizing soil disturbance is that it helps
to lock carbon into the soil and prevents itfrom being released into the atmosphere.
It also helps with nutrient retention, water
infiltration and increases soil organic matter.
To further enhance our ability to sequester
carbon into the soil, we are partnering with
Cornell University to pioneer a piece of research
focusing on non-organic carbon sequestration.
Using Controlled Traffic Farming
and specialized machinery to
avoid soil compaction
To ensure our soil remains well-aerated
throughout the season with minimal tilling,
we use technologies that prevent farm
traffic from compacting and damaging
the soil. Controlled Traffic Farming(“CTF”) uses a system of permanent, but
limited, wheel tracks across fields where

Smart & Sustainable
FarmingResource-Efficient
Operations

machines like tractors travel, reducing
how much of our soil is compacted.
To achieve this, all our machinery is guided
by a specialized Raven GPS steering systemwith sub-inch accuracy, which keeps it on
its tracks. The tracks are spaced 3.4 metresapart with four row beds set in between –wider than usual to reduce the number oftracks overall. This unique spacing means
our machinery wheels are retrofitted to sit
at 3.4 metres apart. Two pieces of equipmentthat help reduce soil compaction are
the basket hiller and the dammer-diker.
Both of these attach to the tractor andwork to aerate the soil and increase water
retention, particularly by creating pockets
which hold water in place underground.
We are measuring the effectiveness of ourCTF system through our partnership with
the Government of Canada Agricultureand Agri-Food Canada department. So far,our findings suggest that our CTF system
reduces soil erosion, nutrient loss and soil bulk
density, while improving water infiltration.

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12

Partner Spotlight

Wayne Honeycutt, President and CEO, Soil Health Institute: “Farmers are already experts in their field,
they just need support in the journey to regenerative agriculture”
Insight from our expert partners
We’re delighted to see that interest in regenerative agriculture
has really taken off in the last few years. While the term covers
a lot of different approaches and philosophies, one value heldin common is the idea of improving soil health. Healthy soil
can help build resilience to increasingly frequent extreme
weather events, reduce reliance on expensive fertilizers, andbuild what we soil scientists call “Available Water Holding
Capacity” which helps farmers to improve crop quality
and achieve more stable yields year on year. Regenerative
agriculture is therefore one of those rare win-win situations
for farmers, agricultural industries, the environment, andultimately for society.

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President & CEO

Sustainability
at McCain

There are several ways that industry can support the transition
to regenerative agriculture. A critical area of support is toprovide practical, location-based education programs. Farmers
are already experts at what they do, but education programs
can be very useful in showcasing new practices and helping
to make well-informed decisions for their specific farm,
production system, climate, soils, and personal goals.
My experience is that farmers learn best from other farmers.
That is why at the Soil Health Institute we are working with
McCain to set up peer networks or “cohorts” of farmers andtechnical specialists so they can hear from each other how
they successfully adopted regenerative practices and how
they’ve benefited. McCain has developed a very thoughtful
framework that allows farmers to see where they currently
are on their regenerative journey and what steps can be taken
to progress to the next level. We can help farmers along thisjourney by focusing on what is important to them: building
drought resilience, reducing input costs, reducing erosion,and of course increasing profits. All of these areas can beaddressed by focusing on soil health.

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
Farming

Ensuring that businesses let farmers know that adopting
regenerative soil health practices is important to them isalso key. That sends a clear signal about industry priorities
and what the future holds for farmers wanting to partnerwith key brands. Similarly, educating other groups that
influence the uptake of regenerative agriculture, particularly
landowners and land managers is equally important. “Fullsystem” perspectives can be challenging to manage
in situations where a farmer is leasing land, so wider
adjustments to the business model are needed.
The future success of regenerative agriculture at scale boils
down to one key ingredient: giving farmers the information
they need to make it a success. In some cases that may mean
providing information on the business case for a regenerative
agriculture practice, or it may mean demonstrating how
healthy their soils can become using robust data. The
good news is that we have a good idea of what is needed,
and many farmers are recognizing how improving soil healththrough regenerative practices can help them build resilienceand improve their bottom line. I’ve never met a farmer who,
after transitioning to regenerative soil health systems, everwent back!

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Optimizing our use of inputs

May & June
Planting season begins with a focus
on optimizing inputs
Key Regenerative Agriculture Principles

Planting the potatoes and other crops
In mid-May we plant the seeds for our crops,
marking the beginning of the growing
season. By early June, the first plants begin
to emerge. This last season we were able toplant the seeds without tilling the fields first,
which is a testament to the work done in fall
and winter to armour and prepare the soil.
Potatoes are not the only crops we plant.
Our Farm of the Future Canada works ona four-year crop rotation schedule, whichmeans a proportion of our fields are always
planted with non-potato cash crops. In 2023

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we focused on oats, which were planted
at the beginning of June and harvested inlate September. In previous years we havealso planted barley and wheat. Diverse crop
rotations help prevent pests and disease andprovides opportunity for nutrients in the soil
to replenish. Crop rotation also increases
biodiversity, which thrives on variety. In
addition, our choice of non-potato cash
crops are all no-till varieties, so both the soil
and climate benefit from lack of disturbance.

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

Reducing agro-chemical impact is one of
our key Regenerative Agriculture Principles.
The production and application of synthetic
fertilizers make up a significant proportion of
our carbon footprint on the farm, and overusecan also have an unwelcome impact on soil
and groundwater. If we can create rich andhealthy soil naturally, it can reduce the quantityof inputs needed, and therefore the cost forfarmers. Reducing the use of agro-chemical
products doesn’t happen overnight and can
only be changed once the soil is thriving. One
way of looking at it is that we have to earn theright to reduce our reliance on inputs throughour good work focusing on soil health.

synthetic fertilizer for maximum impact
and value. We also think carefully about theenvironmental conditions before spraying.
For example, considering the weather, visibilityof spores in the air, and historical data allows
us to make targeted decisions about how
we use inputs.

At Farm of the Future Canada, we have beenable to reduce our use of synthetic fertilizers
while maintaining crop quality and yield. In
2022, we were able to reduce our nitrogen
fertilizer application by 13% compared to atypical farmer in the area. This is a testament
to the great work the Farm of the Future
team has been doing with cover crops, low-tillinterventions and increased water retention.
When we do use synthetic fertilizers, we’reable to use them as required, with precisionapplication delivering smaller volumes ofSmart & Sustainable
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Livestock arrives at the farm to help naturally
fertilize our fields
Introducing livestock is another powerful toolfor increasing nutrients in the soil without usingsynthetic fertilizers. At the end of May, local
cattle arrive on the farm and spend the summer
grazing on our cover crops. As a key part of thefood system, cattle produce and spread natural
fertilizer, recycling nutrients such as nitrogen andcarbon back into the food chain and encouraging
organic growth without disturbing the soil. We use
a process called strip grazing to ensure an evenapplication of manure: livestock are confined toa strip of fresh pasture for a few days at a time,then moved to a new strip to fertilize and allow
regrowth where they have grazed.
Our livestock integration model sees cattle
borrowed from neighboring farmers, rather thanfarmers having to keep their own livestock yearround. We initially had a tough time convincing
local cattle producers to partner with us – thearrangement was new and unusual, and it wasdifficult to communicate the benefits. However,after one rancher took a chance on us and was
impressed to find their cattle returned healthierand better fed than ever, word spread quickly
and cattle producers are now keen to join forces.

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Partner Spotlight

Jack Smith, Farms Director at AG Wright & Son (Farms) Ltd, South Cambridgeshire, UK:“Our biggest goal is to make sure that the next generation keeps on farming”
Insight from our expert partners
Regenerative agriculture is a hot topic among farmers. But
whether you agree with it or not, it’s hard to argue with theunderlying principles: looking after the soil, reducing chemicals,
being as unintrusive as possible. Really, these ideas are justgood farming practices that have been used for generations.
The concept of regenerative agriculture is hard to define so
it’s helpful that McCain have put their own definition andframework against it. On our farm, we use a range of practices
from the McCain Regenerative Agriculture Framework, adapted
to our specific needs – we primarily grow in soil with high organic
matter. For us, these regenerative practices are doubly important
as we try to preserve and improve the lowland peat soils of theUnited Kingdom.
We’re planting cover crops early to armour the soil, reducing
agro-chemical inputs where appropriate, introducing livestock,and trying to improve biodiversity and pollinators by planting
headlands with a wildflower mix provided by McCain. We’realso trying to reduce soil movement by reducing the numberof passes over the fields and by not plowing. One way we’vemanaged to stop plowing is by only growing on better landContents

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Sustainability
at McCainwith a better supply of water, rather than growing on marginal,
lower-quality land. If you’re trying to do more with less, you haveto start with the best land.
The autumn [fall] of 2023 in the UK was a very difficult season
but also an example of how regenerative practices are helping
us. There were some pretty horrendous weather conditions but
actually our fields were in better health than they would havebeen a couple of years ago. If this had happened three or four
years ago, before we started changing how we farm, we’d bein more trouble.

I’ve been involved in the Sustainable Agriculture Steering Group
with McCain, and it’s encouraging to see that they have theleading potato advisors in the UK designing and trialing thesesystems. Being involved with programs like that you learn a lot
and get to sound out ideas about what works and what doesn’t.
You also meet other farmers with the same attitude as you, see
their farms and pick up new ideas to replicate on your own farm.
The future of farming is change. We can’t continue to do what
we were doing 10 years ago and hope for better results – that’s
just madness. Farming has to keep evolving with research andbest practice.

The main motivation for making the change is to grow a betterand more financially viable crop. You have to pick the practices
that are going to work for you so you don’t increase risk too
much. Farmers often turn to intensive farming and chemicals to
try and overcome risk and maintain or increase margin, but thiscan be a challenge in itself as more inputs mean more cost that
can actually reduce margins. In regenerative agriculture we haveto make big changes to processes while maintaining yield andmargin. If we can’t make money, it’s not going to happen. Thereis always going to be risk involved, but we have to find ways tomake sure it is shared widely across the value chain.

My advice to farmers thinking of taking on regenerative
approaches is to get started. You can’t ignore it so bebold, get involved, learn from your neighbours.
That’s certainly where we’re at. We’ve notfinished changing by a long way, andwe’re not perfect. But we are involved
with the conversation and as afourth-generation family-owned
farm, our biggest goal is to makesure that the next generation
keeps on farming.

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July &
AugustThriving biodiversity and a focus on education
Key Regenerative Agriculture Principles

The soil is rich and pollinators are
drawn to the fields
By the high summer, the flurry of planting
activity has finished and the potatoes arestarting to grow. During this time, the farm isbrimming with life. Above ground, pollinatorsand other insects are attracted to the flowers of
our crops and cover crops. At Farm of the Future
Canada we have encouraged natural flower
vegetation on the borders of our fields, which
are now full of species like alsike clovers andbirdsfoot trefoil, providing an essential habitatand source of food for bees and other insects.

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Beneath the ground, the soil is also teemingwith life. Our cover crops and careful
preparation of the soil have created a vibrantecosystem of microorganisms, bacteria andorganic matter. Well-aerated soil means worms
and other invertebrates can move freely
through the earth, and the soil can breathe.
Over the past few years, we have partneredwith the Centre for Biodiversity Genomics
based in Guelph, Canada, to gain even moreinsight into our soil at this time of year. Their

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cutting-edge DNA metabarcoding processprovides us with more comprehensive soil
biodiversity information, which means wecan better understand the bacteria, fungi
and animal communities that make our fields
their home. The process can also provide
biological information that contributes toa more holistic decision system informing
our choices around agro-chemical products
and allows us to quantify the benefits ofregenerative agriculture on soil healthand productivity at scale.

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Maintaining the right conditions for healthy
crop growth
Monitoring and optimizing growing conditions
is our main focus over the summer months.
This challenging job is made even moredifficult by the impacts of climate change.
In particular, water supply has become lesspredictable, water-stress more common,
and as a result we are seeing an increased
risk of pests. We are therefore investing intechnologies that make it easier to makethe right interventions, in the right locations,at the right moments.
One important intervention for many farmers
is irrigation, which enables us to minimize
water-use. At Farm of the Future Canada,
we installed pond irrigation systems designed
to capture and store excess rainfall while
also providing water for our livestock. We also
constructed a solar-powered drip irrigation
system that can deliver water precisely andin a way that reduces the risk of creating theconditions for disease and mildew. However,heavy rainfall throughout the growing
season in 2023 meant our new irrigation
technology was not needed this year. This
served as an important reminder of the realityof volatile conditions in a changing climate,Contents

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but we expect to have it in use next year forassessment of its effectiveness and impact.
The use of crop protection products likeherbicides and pesticides is another importantpart of crop development over the summer.
Pests will always be present, and we want to
reduce their impact in a way that uses as few
inputs as possible. Our first defence is natural
methods of pest control. Certain cover crops,
such as oilseed radish, naturally prevent soil
borne pests and diseases without the needfor herbicides. In the future, when we do apply
crop protection products to the plants at
Farm of the Future Canada, we will be using
highly targeted, AI-controlled, ‘see and spray’
technology to ensure precise application.
Our tractors will use cameras and sensors to
identify specific issue areas and only spraythose plants that need it, removing theneed to spray across entire fields. More
broadly, McCain is supporting farmers withnew technologies. For example, McCain
recently launched Presia Ag Insights, a new
business unit which strengthens decisionmaking capabilities through satellite
imaging and machine learning.

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How we support our farmers’ regenerative transformation
Focusing on education allows farmers
to build skills and networks
Above ground, the farm is also buzzing withvisitors, farmers and McCain partners eager
to learn and grow alongside each other on
this journey. Demonstration days and programs
held throughout the year are hugely important.
Farmer Field Days take place in the summer
and this year’s program covered new advancesin research, a demonstration of ‘see and spray’
technology, and discussions of the challenges
associated with harvesting, irrigation andlivestock integration. Hosting these days at
Farm of the Future allows us to share knowledge
through a powerful ‘show and tell’ approach(for more information see our spotlight onmeasuring progress).

Multi-stakeholder collaboration

1. Economic
Support

2. Technicalsupport• Financial solutions &direct funding• Showcasing practices• Long-term contracts• Demo farms andinnovation hubs

• Government support &public subsidies• Deep relationships
with field reps

However, perhaps the most valuable aspect of
the Field Days is the opportunity for farmers tobuild networks with their peers, which enables
them to share their first-hand experiences of theregenerative transformation. By bringing farmers
together for these events and programs, we hopeto create cohorts of peers who can support eachother and share their experiences long after the
Field Day has ended.

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3. Measuring progress• Data measurement and surveying• Digital technology solutions

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Financial support and investment are
critical for accelerating the transition
One of the key challenges to the adoptionof regenerative practices is the financial
barrier. Many farmers share concerns aboutrisks to short-term yields, investment in new
equipment and the commercial model.
Studies show there is significant opportunity
in moving to regenerative practices in thelong-term, but we recognize extra support
is needed now.

Across our growing regions, we also work withfinancial and commercial partners to offer
incentives and preferential loan terms to ourregenerative farmers, allowing them to invest
in new equipment, technology and expert
services. We have set up different incentive
programs with Farm Credit Canada, Credit
Agricole, Rabobank and NatWest. In addition,
our partnership with McDonald’s Canada, the$1M Future of Potato Farming Fund, provides
cost-sharing grants to help farmers begin andscale their regenerative transformation.

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Our Farm of the Future Africa regularly experiences hot andextreme weather conditions, and is often operating under waterstress. This makes our Regenerative Agriculture Principle ofincreasing water efficiency even more vital.
Our most significant intervention so far has been introducing a drip irrigation system
which uses technology to constantly monitor the moisture in the soil and deliver the
optimal amount of water where it is needed. We installed drip lines at the same time
as planting and ridging the soil, thereby reducing passes of the field by machinery.
Though measurement is still being optimized, we have managed to achieve
comparable yields with much less water applied, indicating early success of this system.
However, it was not without its challenges. We found that historic infestations of a weed
called tribulus terrestris, or ‘devils thorn’, was puncturing the drip tape. This year, in
response, we installed thicker, more expensive drip tape to protect our irrigation system
and are exploring how we can increase efficiency by mechanizing drip line removal. We
are also experimenting with introducing mulch from our cover crops into the irrigation
system to reduce evaporation and conserve moisture, making it more efficient.

We therefore work closely with partners
to provide support that can de-risk boththe transition period and the longer-termbusiness model. One way we do this isthrough a blend of different types of financial
support. For example, in France we offer
farmers six-year commercial contracts,
and a premium price for regenerative crops.

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Partner Spotlight

Rabobank: “The large-scale transformation to regenerative agriculture presents risks, but we’vebeen able to create tailor-made financing solutions to the specific challenges farmers face”
Insight from our expert partners

More broadly, one of the most significant commercial
challenges for the regenerative agriculture sector is proving themodel to banks who may find it hard to quantify the benefitsof improved resilience, as well as the significant cost of inaction.
Regenerative agriculture is still viewed by many as more volatile
than conventional farming. The solution to this is more data on
both farming and commercial outcomes of programs like ours.

Our team at Rabobank is working alongside McCain to
increase uptake of regenerative agriculture practices byoffering farmers incentives and support. A large-scaletransformation to regenerative agriculture presents risks,
and we in the banking industry are good at assessing risk.
By working closely with McCain and its farmers, we’ve beenable to create tailor-made financing solutions that enable
investments in equipment and technology that growers
need for regenerative practices.
As part of our three-year partnership in the Netherlands,
launched in early 2023, McCain offers farmers a multi-year
contract including education, technical assistance, a premiumfor regenerative produce and access to demonstration farms.
As farmers advance, our team at Rabobank offers sustainabilitylinked incentives such as loans with discounts once growers
receive a high score on sustainable practices. We are also offering
financial solutions that blend our own products with public
subsidies in the Netherlands, making it easier for farmers toaccess financing. Looking forward, we are exploring offering
equipment financing in an agile and competitive way toremove barriers for farmers, and potentially expanding thepartnership to Australia, New Zealand and the USA.

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Smart & Sustainable
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Once this data is in place, regenerative agriculture should
become an even more attractive space for financial services
providers – in the long term, it will create more resilient andstronger supply chains for our customers, which means
reducing risk for banks. At Rabobank, another key motivationis the opportunity to reduce our Scope 3 emissions and wider
environmental impact by helping reduce the emissions footprint
and agro-chemical inputs of the agriculture sector. And of course,
offering exciting new products to regenerative farmers will be
powerful in attracting new customers, particularly when linked
to a high-profile partnership like the one we have with McCain.
We’re proud to be at the forefront of supporting the transition
to regenerative agriculture and delighted that we can partnerwith McCain on the journey. Our hope is that over the next
three years and beyond, the industry can take a significant
step forward towards a regenerative future.

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September& October
Harvesting the potatoes and assessing the yield
Key Regenerative Agriculture Principles

Before the harvest we once again begin to plant
cover crops
By mid-September, the potatoes are ready to be
harvested. This means unearthing the tubers while
trying to minimize disturbance to the soil. Of course,when harvesting potatoes we can’t avoid digging,so we use the opportunity to undertake otherbeneficial practices at the same time. Days before
we begin the harvest, we lay down cover crop seeds
such as oats and brown mustard, so that they can beembedded and mixed into the soil as we harvest the
potatoes. These cover crops quickly grow and protect
the soil, restarting the annual cycle at the farm.

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Deep Dive: A year in the life of aregenerative agriculture transformation

We also practice fall bedding, which means
irrigating, fertilizing and tilling the fields into
their traditional hill beds before the winterarrives. Over the colder months, these hills freeze
and thaw, loosening the soil that we disturbed
during the harvest season. This removes theneed for additional tillage in the spring, and as
a result reduces the need for additional labour,
heavy machinery and fuel consumption.
The harvest itself takes over a month of hard
work from our farmers, but finally they see thefruits of their labour. By the end of October, allof the potatoes and rotational non-potato cash
crops are out of the ground, and the fields areprepared for the fast-approaching winter.

With the potatoes harvested, we begin
to assess our yield
As potatoes make their way into our storage
buildings and out towards our McCain factories,
we’re able to review our yield. Data from local
conventional potato farmers sets a benchmark
for the quality and quantity of tubers we hopeto harvest. In 2023, at the Farm of the Future
Canada, our regeneratively farmed potatoes
had fewer internal defects than local averages,
likely due to improved water filtration in thesoil because of less soil compaction. In terms

Smart & Sustainable
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local average.
Alongside this, we are currently carryingout analysis to measure the farm costs andeconomic benefits associated with regenerative
practices compared to local conventionalfarms. On the one hand we have recognizedcost savings from reduced synthetic fertilizer
use and lower costs in fuel and labour due toreduced tillage. On the other hand, there havealso been cost increases from buying crop
protection products with a lower environmental
impact. While it is early days and additional
economic and environmental benefits are still
being captured (we are in year three of a full
four-year rotation), so far regenerative practices
have not had a negative impact on yield. This
will continue to be an area of analysis at Farmof the Future Canada in the months to come.

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Farm of the Future Africa:
Crop rotation
At Farm of the Future Africa, we produce four cash
crops – potato, maize, soybean, and wheat – on afour-year rotation cycle. The varieties we plant in thiscycle are specific to the southern hemisphere both interms of climate adaptation and local market need.
Crop rotation has the same benefits in the Southernhemisphere as in Canada, giving the fields time
to restore nutrients and, in the case of maize andsoybean, benefit from no-till harvesting. Our maize
is also underseeded, a process in which a cover crop isplanted into an already established crop. This practicehelps to increase biodiversity and biomass which has
positive effects on soil health, crop health and yield.
As well as benefiting the soil, our non-potato cash
crops have delivered higher-than-expected retailprices, which we can reinvest into innovation at
the farm. For farmers looking to make the transition
to regenerative farming, this provides a great proofpoint for the financial benefits.

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Partner Spotlight

McDonald’s: “Our ability to serve communities for decades to come is intertwined with theresilience of our suppliers and the farmers, ranchers, growers, and producers within our System.”Insight from our expert partners
At McDonald’s, everything we serve starts on the farm. Our ability
to feed communities is intertwined with the long-term resilienceof our suppliers, and the farmers, ranchers and producers within
our System. Additionally, the strength of our supplier community
is critical to our ability to advance science-based climate action
and drive nature-based solutions. Regenerative agriculture is an
important part of our climate strategy, and the implementationof these practices will help us contribute to a resilient, thriving
food system, allowing us to continue providing affordable, moresustainable food in 40,000+ communities around the world.
This work necessitates System-wide, collective action. Our
work with McCain, and direct collaboration with farmer
partners, helps us better understand the impacts on theirfarming partners and their businesses – and the support
that’s needed. A farmer’s transition to regenerative agriculture
practices is no small feat, and farmers have to shoulder theburden of a steep learning curve of fairly dramatic changes tocomplex production practices, with financing and yield results
being key considerations. Partnering with McCain brings us
closer to the farm level and helps us advocate for broad-based
policies and solutions that can help transform food systems.

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Our work with McCain is an example of an important
collaboration that is making a positive impact at scale throughboth farmer engagement and education throughout McDonald’s
system. Across multiple global markets, including Canada andthe UK, we have worked with McCain to create dedicated funds
that incentivize farmers’ transition to regenerative farming.
Through the McCain team’s potato production expertise, we
are able to prioritize the most impactful regenerative actions,and our hope is that additional categories will ultimately benefit
from our increased understanding of how to partner and scalethese changes. The McDonald’s team recently visited McCain’s
first Farm of the Future in New Brunswick, Canada. This wasa great opportunity to see regenerative farming in action andunderstand the impact these practices could have at scale.
Regenerative agriculture is still a new topic for consumers – butinterest is growing. People enjoy learning about how their food isgrown, and where it comes from. As one of the largest consumerfacing brands in the world, we see our role as helping raise
consumer expectations, empowering them to expect products
to be sourced in a way that prioritizes responsible production
while protecting nature, ecosystems and communities. We lookforward to our continued partnership with suppliers like McCain
as we further our efforts and feed and foster communities for
decades to come.

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November &DecemberAssessing our progress against the
Regenerative Agriculture Framework
At the end of the year we also assess ouroutcomes against the seven indicators of our
Regenerative Agriculture Framework. This
helps us to identify areas where we have madeprogress or faced challenges, giving us
a clearer view on where we need to focus
in the year ahead. We encourage all of ourfarmers to go through this process annuallyto continue to improve and progress throughthe levels of our Framework.

Measuring outcomes, innovation, and future planning
Key Regenerative Agriculture Principles

With the harvest complete,
we begin to reflect on the year
With the potatoes collected from the fields,
our cover crops once again cover thelandscape. We can now take the opportunity
to reflect on the challenges and successesof the year.
The Farm of the Future External Advisory Board,a collection of agronomy practitioners, scientificexperts and farmers play an important part inreviewing our annual progress. Twelve months
previously, they encouraged us to focus on
further reducing synthetic fertilizers andContents

A message from our
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increasing our use of cover crops and green
manure. While the data is still being processed,
we have gained some valuable lessons. For
example, we saw the positive impacts of covercrops and learned that selecting the right
blend of cover crops is crucial. We also foundthat the timetable for planting and terminatingthem is equally important as missing deadlines
can lead to weed growth. This year we had an
added challenge in reducing agro-chemical
impacts because some cover crops survived
through winter so had to be terminated before
the planting season. Reflecting on theselessons means we can make more informed
decisions next year.

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Following the harvest, we reflect on our progress against the Regenerative Agriculture Framework Indicators:

Assessing progress against the Regenerative Agriculture Framework
Regenerative Agriculture Framework Indicators Reflection questions
Armoured soils preferablywith living plants• What percentage of the soil surface has been covered

Enhanced crop diversity• How many different crop species have been grown?

by living crops or residue and for how much of the year?

• How many times did we till the soil?
• How did we adopt conservation tillage in rotation crops?

Minimized soil disturbance• By what intensity did we decrease tillage across rotation?
• Which crop protection products were used to reduce
environmental, human and consumer impact?

Reduced toxicity of pesticides• What is the Environmental Impact Quotient (“EIQ”)

Meanwhile, regenerative potatoes become fries
As winter draws in, our regeneratively-farmed potatoes are beingtransformed into McCain products and making their way to ourdinner tables. But today, few consumers will know that. Despite its
huge importance to the future of the food system and the climate,
there is little public awareness about regenerative agriculture. At
McCain, we want to be part of changing this.
In 2022, McCain pioneered consumer engagement and education
on regenerative agriculture. We produced Regen Fries, fries madefrom potatoes grown through regenerative agriculture practices.
Regen Fries were served through pop-up events in Canada, US, andthe UK. To engage and educate consumers, McCain, in partnershipwith Livetopia, developed an immersive Roblox game, which wasa playful digital twin of McCain’s Farms of the Future. So far, thegame has engaged over 41 million players. Through this initiative
consumers were able to learn about regenerative agriculture while
tasting delicious Regen Fries.

value per hectare?

• What percentage of our land has been dedicated toEnhanced farm andecosystem biodiversity

natural habitat?

• Were all inputs applied based on Decision Support Systems
Reduced agro-chemical impact
and optimize water-use(“DSS”) or expert advice from a recognized crop advisor?

• What percentage of crop nutrient needs were provided
from organic sources?

Increased organic soil matter

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President & CEO• What was the percentage increase in organic matter in the soil?
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Conclusion
Collaboration

Looking ahead

The regenerative transformation needs to be a collaborative
movement, with all players in the value chain playing theirpart. In particular, governments are key to creating the rightenabling environment through financial, regulatory andtechnical policy and support. For example, McCain Foods
USA recently partnered with the Soil Health Institute andCampbell Soup Company and received funding from the
Natural Resources Convention Service – a USDA agency – tohelp potato farmers in Maine and Wisconsin trial and adopt
climate-smart practices. We also collaborate at an industry
level, such as through our membership of the Canadian
Alliance for Net-Zero Agri-food (“CANZA”), helping create asustainable future for Canada’s food sector. Coalitions suchas the Sustainable Markets Initiative (“SMI”) Agribusiness
Task Force, One Planet Business for Biodiversity (“OP2B”),
and the Sustainable Agriculture Initiative (“SAI”) Platform arealso important platforms to connect with others in the foodand agriculture industry to better understand how to scale
regenerative farming.

Over the coming year the focus for Farm of the Future
Canada will be on introducing new technologies, expanding
partnerships and research, as well as demonstrating the
economic benefits of the transformation and reducing costof entry for farmers. We also plan to open our third Farm of
the Future by fiscal year 2025. In parallel, we are reviewing
and updating our Regenerative Agriculture Framework
to reflect evolving best practices, and in early 2024 we will
publish our annual report of the progress made on eachof our Farms of the Future.5

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With no one-size-fits-all blueprint for how regenerative
agriculture should be implemented, our work withresearchers, farmers, commercial and financial partners
is helping develop best practices and educate farmers
on how to make the transition. None of this will happen
overnight, but we are making good progress and arecommitted to sharing our successes and challenges as
we work towards our target of implementing regenerative
agriculture across 100% of our potato acreage by 2030. If
you are interested in joining us, please get in touch – wewould love to connect. A huge thank you to our team at
Farm of the Future Canada for their support in producing
this Deep Dive, and to all of our farmers and partners acrossthe world for their energy, enthusiasm and hard work to
make the regenerative transition a reality.

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Our 2023
progress.

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Smart & Sustainable Farming.
Agriculture contributes approximately 23% of greenhousegas emissions globally, and is simultaneously one of the mostvulnerable sectors to the negative impacts of climate change.6
More frequent droughts, extreme temperatures and flooding events are having an increasing
impact on farmers’ ability to grow and produce food. With these factors at play, farming canbe part of the solution by adopting a more sustainable model.
As a major player in the potato value chain, we recognize our responsibility to be part of thechange. This means being smart and sustainable about how we grow our raw ingredientsand manufacture our products. We believe that a shift to regenerative farming is the key to our
future, and we are working directly with our farmers to drive this transformation. By developing
local knowledge, investing in research and technologies, and implementing new regenerativetechniques, we’re working towards our ambition to implement regenerative practices on 100%of McCain’s potato acreage by 2030.

Our approach to Smart & Sustainable Farming is driven by the following priorities:• Accelerating the adoption of regenerative agricultural practices• Mitigating on-farm climate impact• Promoting the efficient use of water

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Deep Dive: A year in the life of aregenerative agriculture transformation

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2023 progress overview
We made significant
progress against ourtargets in 2023.
Our farmers are increasingly adopting
regenerative practices. Leveraging our
Regenerative Agriculture Framework, ourFarm of the Future Af rica has successfullycompleted its first full year of operation,
and we have continued to collaborate
with industry and financing partners to
help accelerate the transition towards
regenerative agriculture. The effect ofclimate volatility on our potato yields
has been a challenge to our emissions
intensity reduction ambition, yet weare optimistic that through identifying
high-emissions regions we will be able
to implement initiatives and roadmaps
to deliver progress.

Contents

A message from our
President & CEO

•
•
•
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Progress updates

Sustainability
at McCain 8% of global acreage reached the ‘Engaged’ level of our
2
Regenerative Agriculture Framework (previously known as‘Beginner’) and 51% reached ‘Onboarding’ level, according toour surveyed farmers.7
 ompleted the first full year of our Farm of the Future Africa,Cwith a focus on enhancing crop diversity, solar energy and use ofinnovative irrigation technology in a water-scarce region, as wellas addressing the challenges arising from the presence of soilborne pests and diseases. (For more detail, see our Regenerative
Agriculture Deep Dive).
 chieved progress at our Farm of the Future Canada,Awith regenerative practices contributing significantly to the
reduction of carbon emissions through the potato life cycle.
(For more detail, see our Regenerative Agriculture Deep Dive).
 esigned and deployed innovative financial solutions,Dcommercial incentives and partnerships to assist farmers
in transitioning to regenerative agriculture. McCain continues
to join forces with leading financial institutions, such as
Rabobank in the Netherlands, Farm Credit Canada and Natwest
in the UK, to offer farmers competitive access to financing forregenerative investments and accelerate and de-risk farmers’transition towards regenerative practices. In France and theNetherlands, McCain is offering farmers multi-year contracts
with incentivizing benefits, ranging from premiums per tonneof potato farmed, to interest free loans and multi-species covercrop seeds at discount prices. (For more detail on our Rabobank
partnership, see the Regenerative Agriculture Deep Dive).

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
Farming••• aunched the $1M Future of Potato Farming Fund withL
McDonald’s Canada to offer Canadian potato farmers costsharing grants for trialing regenerative practices
and technologies.
 orked alongside other major organizations as part ofW
the Sustainable Markets Initiative Agribusiness Task Forceto identify what can be done by the private sector toaccelerate the adoption of regenerative farming. The Task
Force published its action plan at COP27, which highlighted theurgent need for consistent metrics, better government policy
incentives and a transformation of sourcing to spread the costof transition to more sustainable practices.
 ecorded a 6% increase in the emissions intensity associatedRwith our potato farming, storage and freight (Scope 3)
between 2022 and 2023.8 This increase in emissions intensity
was due to fluctuating weather patterns meaning an increasein demand for water in key regions, resulting in reduced yields.
This was a particular challenge in Great Britain, France, Tasmania
and Manitoba in Canada. With impacts on yield expected tocontinue, reducing emissions associated with farming will remaina challenge. To overcome this, we are working closely with theseregions to implement tailored emission reduction initiatives,
along with implementation of our regenerative agriculture
ambition. In 2023, we updated our emissions calculation model
to improve the reliability of our data and will continue to enhance
our data monitoring capabilities.

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Spotlighton

Water-stress
tolerant varieties.

As part of our commitment to improve
our water efficiency in water-stressedregions, we constantly seek to trial waterstress tolerant potato varieties across all
our regions, in order to identify where
varieties can be used to improve ourresilience against climate change. To
do so, we compare the yield and quality
obtained from a water-stress tolerantvariety to a standard variety, grown indrought conditions across multiple years.

In North America, we carried out waterstress variety testing, and found thatwhen the standard Russet Burbank
variety was planted during water-stressconditions, its yield and quality reduced,
resulting in a lower total yield and ahigher volume of food waste. In contrast,
when we planted the Caribou Russet
variety, we saw a significant increasein our yield and quality.

Spotlighton

Measuring
progress.

As our farmers implement regenerative
agricultural practices across their farms,
providing them with a comprehensive setof measurement criteria to help them track
their progress is key.
That’s why last year we launched our
Regenerative Agriculture Framework,
which supports our farmers’ progression
towards a more regenerative model offarming. The Framework provides principles,priority indicators, and thresholds to capture
progress on implementing regenerative
farming practices over time. This year wehave focused on rolling this out across our
farmer base.
To support farmers in implementing theframework, we provide training and farmer
engagement programs which facilitate
knowledge transfer between farmers ofvarying experience level. For example, we

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
FarmingResource-Efficient
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are working in partnership with the Soil
Health Institute in North America, Soil Equatorin the Netherlands and the Earthworm
Foundation in France. Approximately 8% of
our farmers in the Netherlands, 17% of ourfarmers in France and 95% of our farmers inNorth America have now engaged in training.
We have also invested in enhanced datacollection and measurement methods, suchas digital agriculture technologies to provide
robust data insights.
McCain also works with industry partners
to encourage the harmonization of
measurement approaches to regenerative
agriculture. As a member of the Sustainable
Agriculture Initiative (“SAI”) Platform, in 2023,
McCain chaired our “Regenerating Together”
Program, which aims to build a crosscommodity and industry aligned definition,framework and measurement solution forregenerative agriculture.

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Resource-Efficient Operations.
At the time of writing, 2023 is set to be thehottest year on record, and we have seen extreme
temperatures and droughts create havoc in many
locations around the world.9
Working with an agricultural product that is dependent on the land andclimate, it is critical we play our part in addressing this issue and helping toshape a sustainable future. Our focus is on producing more food while using
fewer natural resources. We must be efficient in our use of energy, water, andpackaging, and reduce waste. As a leader in the potato processing industry,
we have the scale and opportunity to drive positive change for our business,
people and planet.

Our approach to Resource-Efficient Operations is driven by the following priorities:• Mitigating our climate impact• Increasing our use of sustainable packaging• Promoting the efficient use of water• Reducing waste, with a target of zero waste
to landfill

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

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2023 progress
overview
We have madeprogress against ouremissions, water andwaste targets over the
past year.
Our reduction in Scope 1 and 2
emissions, improvements in wateruse efficiency and reduction infood waste highlight our progressin running resource-efficient
operations. While we’ve continued
to take steps in the right direction,
we also recognize that some areas
require a greater focus, particularly
the reduction of Scope 3 emissions
and use of sustainable packaging.
We are working to establish morethorough action plans to guideus forward.

Contents

A message from our
President & CEO•

Progress updates

•
•
•
•
•

 emained on track to deliver our Scope 1 and 2 emissions reduction
Rtarget, reducing our absolute emissions by 4.6% between 2022
and 2023. These reductions were the result of our increased use ofrenewable energy and energy efficiency improvements. We have now
delivered a 9.8% reduction in absolute Scope 1 and 2 emissions and a
21.3% reduction in emissions intensity since 2017 and are on track tomeet our 2025 and 2030 targets.10
I ncreased our use of renewable energy, with 21.2% of our electricity
coming from renewable sources in 2023 compared to 18.1% in 2022.10
 elivered several energy efficiency projects which successfullyD
reduced our emissions. These included projects to increase our useof biogas in Great Britain and Central Europe and improve insulation
across our North American sites. These projects resulted in an annual
Scope 1 CO2 reduction of 3,500 tonnes and 3,200 tonnes respectively.
 educed our use of coal to 2.7% of total non-electrical energy. We
R
are working hard to meet our global 2025 target, including the phaseout of coal in New Zealand in 2023; however, South Africa remains a
key challenge to achieving our commitment.10
 cope 3 reduction remains a challenge. We have been defining ourSroadmap to reduce Scope 3 emissions, including gathering informationon our non-potato-related agriculture emissions, which we will be using
to identify specific reduction initiatives.
Improved our understanding on how to update our Scope 3 sciencebased target and accounting in line with the Science Based Target
Initiative’s new Forest, Land and Agriculture (“FLAG”) requirements andthe Greenhouse Gas Protocol’s upcoming Land Sector and Removals
Guidance (expected to be published in 2024).

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

•
•
•
•

Smart & Sustainable
Farming chieved our 2025 water-use efficiency target as a result of improvedA
focus on water efficiency, site specific reduction targets and action
planning. Water reduction projects implemented in 2023 include spraybar management optimization, blancher water usage best practice
implementation, and improved hose management. See our spotlighton water for more details. We plan to set a new long-term and riskbased target in 2024.
 chieved a significant reduction in the volume of waste sent toAlandfill and remain on track to achieve our food waste intensity
target.10 Progress on waste to landfill was due to improvements madeat our Timaru, Mehsana, Carberry and Rice Lake facilities. For
example, at Timaru, the switch from coal to biomass boilers led
to a reduction in coal ash waste to landfill, while at Mehsana wewere able to redirect the brine salts from our wastewater treatment
facility for another company to reuse.
 ade progress on ensuring our packaging is designed to beM
recyclable. In 2023, 98.5% of our paper packaging and 87.8% of ourplastic packaging was designed to be recyclable, compared to 98.2%
and 90.2% respectively in 2022.11 In Canada, our potato retail packaging
became 100% designed to be recyclable. We also deployed oursustainable packaging design guidelines throughout the businessto ensure all teams can identify which materials are designed to berecyclable. Our focus for next year will be on replacing non-recyclable
materials with designed to be recyclable alternatives.
 ontinued our ongoing work to address plastic packaging recyclingC
infrastructure challenges related to packaging collection, sorting,and recycling, through our continued support of regional initiatives.
In 2023 we became members of the Association of Plastic Recyclers inNorth America and we remain an active participant in the Consumer
Goods Forum Plastic Waste Coalition working groups.

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Spotlighton

Spotlighton

Heat recovery
system.

Making our operations as efficient as
possible is essential if we are to meet ourscience-based emissions reduction targets.
Heat recovery systems improve energy
efficiency by utilizing waste heat generated
from fossil fuels.
Last year an internal cross-regional team worked with external experts
to develop a Heat Recovery Blueprint for our facilities. We created amodel for an energy efficient fry production line, which used wasted
heat instead of steam across several stages of production.

Contents

A message from our
President & CEO

Sustainability
at McCainAt our Timaru site in New Zealand, McCain implemented waste heatrecovery as part of a large decarbonization project, which included
the phasing out of coal. At this facility, the inclusion of a Mechanical
Vapor Recompression (“MVR”) system was piloted to increase heatrecovery potential. Despite challenges due to the global pandemic,
such as freight and steel production disruptions, the project had
great results, delivering an energy intensity (GJ/KT) improvementof 4.75%, and a reduction in Scope 1 emissions of 24kT between 2022
to 2023. Following the success of this project, the technology
is now included in the Heat Recovery Blueprint.
The Blueprint will be gradually implemented across our potato
manufacturing facilities, with an average implementation of four
facilities per year over the next six years.

Deep Dive: A year in the life of aregenerative agriculture transformation

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Water.

In 2023 we conducted assessments ofwater-use in our production process
and utilities across six facilities. A crossfunctional team, comprised of internaland external subject matter experts,
compared water-use with internal
and industry best practice to identify
areas of opportunity to improve water
efficiency. These opportunities range
from no or low investment changes suchas programming updates, fixing leaks
and process setpoint optimization, tolonger term and more sizeable changes
requiring greater capital investment suchas water recovery, treatment and recycling
systems. Through the implementationof several shorter-term opportunities,
water-use intensity decreased by 2% from2022 to 2023 at the six facilities, and bestpractice recommendations from theseassessments are being compiled to beshared across other facilities globally.

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Good Food.
Whether it’s a family dinner or lunch withfriends, we bring people together and create
memorable moments through delicious,
planet-friendly food.
At McCain, we are proud to serve products in more than 160 countries
across the world. Through our global impact, we know that we havea responsibility to drive positive change through nutritious offerings
that serve the needs of increasingly health- and planet-conscious
consumers. Good Food is our approach to creating simple, responsible,
and sustainable food.

Our approach to Good Food is shaped by the following priorities:• Best-in-class food safety at our facilities• Responsible sourcing of our key ingredients• Improved nutritional profiles of our products• Effective nutrition communication that• Simple and recognizable ingredientsContents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
Farmingencourages responsible consumption

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2023 progress overview
In 2023, we progressed towards achieving
our Good Food commitments.
We launched two new Good Food policies and procedures, reduced ouruse of artificial ingredients, and enhanced our data capabilities so that
we can more efficiently track and report progress on our commitments.
We are focused on accelerating our progress towards meeting our 2025
commitments and driving improvements across our portfolio.

SpotlightonStrong Roots
partnership.

In 2021, through our commitment to diversifying our portfolio andmeeting the needs of increasingly health and planet conscious
consumers, McCain strategically invested $70 million into B-Corp
Company Strong Roots, a vegan, plant-based frozen food company.
This year, Strong Roots launched their Good Made Easy Entrees, which
offer convenience while maintaining high quality, healthier food andsustainably sourced ingredients. In 2023, McCain also worked internallywith Strong Roots to develop new plant-based R&D innovation for the
UK and France, in advance of exciting initiatives to come in 2024.

Contents

A message from our
President & CEO

Sustainability
at McCain•••

2023 progress updatesI ncreased the proportion of tier one
ingredient supplier facilities that are Global
Food Safety Initiative certified to 96% andperformed a gap analysis with clear action
on how to achieve 100%.12
 educed the use of artificial ingredients inR
our core portfolio, including in our batteredfries and oven croquettes in Europe and ourappetizers in North America.
 educed sodium in many key products.
R
For example, in Europe, we achieved an 11%
sodium reduction in our Pickers Nacho Cheese
Triangles and a 20% reduction in our Pickers
Cheese Pillows. While our current global
indicator suggests we have more work to do,
we’ve made significant progress this year
in researching sodium reduction strategies.
This includes developing reduced sodium
products and conducting consumer testing in
key product categories such as cheese-based
appetizers and potato products. To ensure
we can reliably monitor progress against our
sodium reduction commitment and roadmap
going forward, we will be assessing our sodium
indicator to ensure it is effective.

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
Farming•••••Resource-Efficient
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 aunched our new Global Clean Ingredient
L
Policy and Global Nutrition Policy andembedded these in our new productdevelopment process and briefs. These policies
provide ingredient and nutritional guardrails foreach product category for product innovation
and renovation.
 emained on track to meet our cage-freeR
egg commitment. In 2023, 91% of our eggs
were cage-free and we have plans to transition
all remaining eggs by 2025.12
 educed our use of palm oil so that it nowRmakes up 12% of our total oil usage.
 stablished regional cross-functional GoodE
Food Steering Committees supported bysenior leadership to drive progress across ourcommitments and identify and address areas
requiring further improvement.
 reated regional roadmaps to address areasCfor portfolio improvements including sodium
reduction, use of artificial ingredients, cagefree eggs use, and nutrition communication
strategies. We will track progress through our
Global Good Food Steering Committee
moving forward.

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Thriving Communities.

There’s not much we do that isn’t groundedin community and family.
The hard work of our employees and farmers is integral to ourbusiness, and so we seek to support them in return, striving
to create sustainable livelihoods for our farmers, families andwider communities. Through our local development projects,
volunteering initiatives and donations, we ensure that in all wedo, our communities where we operate remain a priority. We’re
proud to be making an impact, now and for generations to come.

Our approach to Thriving Communities is shaped by the following priorities:• Supporting farmers and families through donationsand volunteering• Transforming livelihoods through community
projects and partnerships

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

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2023 progress overview
We continued to support local farmers, families and economies in 2023
through further investment in community development projects as wellas meal donations. We are also extremely proud of the positive impact ouremployees had in the communities where we operate, with many participatingin our Chips In Volunteering Program in 2023.

Spotlighton

Project
Shakti.

Project Shakti is our flagship community program located near our Mehsana plantin Gujarat, India. Established in 2018, the program aims to drive social change andimprove the livelihoods of women and girls. Delivered in partnership with the
Cohesion Foundation Trust, the program stimulates entrepreneurship, and supports
skills development and knowledge transfer. Training is also provided on women’s
rights, health, and financial literacy. In 2023, two more villages participated in the
program and an additional nine self-help groups were established. As a result, Project
Shakti now operates in eight villages across the region, supporting a total of 73 selfhelp groups and bringing the total number of direct beneficiaries since 2018 to 1,011.

Contents•••

2023 progress updates

A message from our
President & CEO

Sustainability
at McCain•Achieved a total of 17,384 hours of employee
volunteering in 2023, with strong participation
during global Chips In Volunteering Week in June.
This was a significant increase from 6,432 hours in
2022, bringing the total number of hours since 2022
to 23,816 to date.
 onated 11.9 million meals to food banks and NGOs,
D
meaning we have donated a total of 175.3 million
meals since 2017.13
 eached 2,716 new beneficiaries through ourRcommunity projects in 2023, bringing the total
number of individuals reached since 2018 to 8,635.14
We reached new beneficiaries through our four
flagship projects, which are our largest long-standing
partnerships, as well as through the other community
projects we have underway in the UK, Canada andAustralia. See our spotlight on Project Shakti to findout how we’re supporting women and girls near ourplant in India. In 2023, we also launched three newcommunity projects in South Africa focusedon reducing food insecurity.
 eceived the Values Award at Second Harvest’sRinaugural Food Rescue Awards in Canada. The
award is given to the company that most sharesthe values of Second Harvest by focusing on food
donations, tackling food waste, and encouraging
volunteering amongst its employees. We received
the award in recognition of our work to support
food rescue and fight food insecurity in Canada.

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Strong Foundations.
At McCain, our people matter themost to us. And by our people, wemean our employees, contractors,
visitors, partners and shareholders,
who collectively make up the
McCain family.
We want McCain to be a place where everyone feels
safe and included, a place where we feel empowered
to bring our authentic selves to work, and a placethat nurtures everyone to grow and develop, whileproviding the security to live and work well.
As a family-owned business, we are founded on theunderstanding that ‘good ethics is good business’,
whether that’s in our operations and supply chainor through our work with business and community
partners around the world.

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

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2023 progress updates
SafetyInclusion

 elivered good progress on our Health and Safety
Dcommitment, putting Health and Safety first in all we do (ifwe can’t do it safely, we simply don’t do it). We continued tostrengthen our safety culture through our ‘For Us, For Family’
brand and by making progress on incident prevention.

 ontinued to drive our Diversity, Equity and Inclusion (“DEI”)
C
agenda forward, with a focus on initiatives that enable us
to become fully representative of our communities andconsumers, deliver structures designed to help us become
discrimination-free and facilitate interactions that help tobuild a culture of radical inclusion.

•
•
•
•

 ocused on turning our strong commitment toFsafety into meaningful actions through a series ofleadership and employee engagement activities,
including leadership workshops and global site
involvement in our safety awareness days. We also
continued to implement improved safety actions as
identified through our Safety Cultural Assessments
and Our Voice survey.
 aintained our Total Recordable Incident Rate at 0.69
M
in 2023, with six manufacturing sites achieving a zeroincident rate for the first time. This is a reduction of 34%
compared to our 2019 Total Recordable Incident Rate.
 eveloped and delivered training for leadershipDteams, functional leaders, and plant colleagues,
covering issues such as equipment lockout, leadershipsafety involvement, and safety incident reporting.
 eveloped a standardized methodology for safe workDpractices using our Global Health and Safety resources
and industry best practices. Rollout will continue into
2024, engaging all functions in our Health and Safetycontinuous improvement journey.

Contents

A message from our
President & CEO

Sustainability
at McCain••• emained on track to meet our target of women in 40%
Rof global leadership roles by 2026, with women making
up 35% of global leadership roles at McCain (Director level
and above) in 2023.12
 oubled the size of our Global Sponsorship Program,D
introducing a second entry stream in 2023. The program
pairs participants with senior sponsors for nine months
to accelerate their exposure, visibility, growth andopportunities for advancement. During the second entry
stream we added ten talented individuals from underrepresented, racialized communities to the program.

•• osted ten events as part of our Global DEI Speaker Series,H
a program designed to emphasize the importance ofawareness, conversation, education, and action. Eventswere hosted in English, as well as seven core languages,
with highlights including talks by Dr. Bill Howatt, aleading mental health advocate, and Dr. Tina Opie, authorof Shared Sisterhood, a book about the importance ofcommunity to creating collective action towards change.
 upported our global Employee Resource Groups (“ERGs”)
S
to host events and provide opportunities to showcase
cultures, experiences and issues that matter. Our ERGs
are energized and passionate groups run by employees,
for employees. With dedicated groups for women,
racialized people, and LGBTQIA+ employees, among
others, our ERGs continue to be an important way
for employees to experience belonging at McCain.

I mproved our Inclusion Index score by 4% in 2023,
meaning that 75% of employees believe that they belong
at McCain. The Index measures employee experience byasking respondents to rate their level of agreement withstatements such as ‘I can be myself at work’ and ‘My teamvalues diverse perspectives’. Our scores improved acrossall six Inclusion Index questions in 2023 and we outperformed global benchmarks where they exist.

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Ethics

Security eviewed our Employee Code of Conduct and SupplierR
Code of Conduct ensuring our employees and suppliers
continue to meet our evolving expectations aroundethical and lawful conduct.

Helped our employees to work and live well through income
security in the form of fair compensation, as well as accessto benefits and opportunities for professional development.

••• tarted the process of refreshing our Employee
S
Code of Conduct and the associated recertification
training, so that our employees are clear about whatis expected of them and have the tools they need tomeet these expectations. The updated training will
include versions tailored to our three main employee
populations: salaried office and sales workers, hourly
food production workers, and drivers and dockworkers. All employees of McCain and its subsidiaries
are required to complete Code of Conduct training
during onboarding and annually, and to declare any
actual or potential conflicts of interest. In 2023, weachieved a certification rate of 98%.
 eviewed and refreshed our Supplier Code of ConductRwhich all suppliers are expected to adhere to. Key
updates to the Code in 2023 included the addition of
specific sustainability requirements relating to GHG
emissions, water stewardship and waste management.
 artnered with a global responsible sourcing providerP
to help improve transparency in our supply chain.
We are now developing a new responsible sourcing
program to assess suppliers on their social andenvironmental performance, and to resolve issues
if they arise.

Contents

A message from our
President & CEO

Sustainability
at McCain••• xpanded and enhanced our employee benefits andEwellbeing programs in various markets. For example, weenhanced our disability coverage in Canada, introduced
health and wellbeing days for hourly employees in North
America, and launched our We Care 360 program in
Latin America to reinforce local benefits and wellbeing
programs. We also launched our global wellbeing portal
Telus Health, offering a range of services and tools
to support the physical, mental, social and financial
wellbeing of our employees as well as offering full
Employee and Family Assistance support.
 ontinued to assess and increase employee wages inCline with local economic conditions to ensure they arecompetitive. This is a fundamental part of our ongoing
efforts to become an employer of choice.

••• iloted our new Great Business Leader program in GreatP
Britain and our Asia, Pacific and South Africa region. Using
peer-based coaching, expert presentations, leadershipassessments and case study modules, the program
equips senior leaders with the skills and knowledge theyneed to deliver regional growth plans. We plan to makethe program available in all regions in 2024.
 elivered our Peak Performance Training workshop toD
300 members of the Global Leadership Team in 2023. The
workshop is designed to help team members become
more effective as individuals and leaders in an increasingly
complex, challenging, and uncertain environment.
 ontinued to offer training modules and learning
C
resources to all employees through Degreed, ourdigital learning platform. In 2023, over 1,700 employees
completed learning modules on the platform. Popular
content included videos on emotional intelligence atwork and the power of diverse thinking.

 elivered our Great People Leader program to 465
Dmanagers in 2023. The program is designed toelevate manager capability across McCain. In total,
780 managers across 61 cohorts globally have now
participated in the program since its launch in 2021.

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Performancetables.

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

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FarmingResource-Efficient
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On track

Monitoring

Needs attention

Smart & Sustainable Farming
Commitment

Indicator

2017

2018

2019

2020

2021

2022

2023

Progress (F17–F23)% acres implemented regenerative agriculture
practices (‘Onboarding’ level reached across
100% of McCain potato acres by 2030)

N/A

N/A

N/A

N/A

N/A

51%

51%

0.0% pts% acres implemented regenerative
agriculture practices (‘Engaged’ level –previously known as ‘Beginner’, reachedacross 50% of McCain potato acres by 2030)

N/A

N/A

N/A

N/A

N/A

20%

28%

+8.0% pts

Investing in three Farms of the Future
to showcase regenerative agriculture
practices by 2025 (baseline 2020)# of Farms of the Future launched

N/A

N/A

N/A

1

0

1

0

+2

Developing research partnerships andleveraging collective action to advanceregenerative agriculture (baseline 2021)15# of new research partnerships
and coalitions

N/A

N/A

N/A

N/A

3

1

3

+7

25% reduction in CO2 emissions per tonne
from potato farming, storage, and freightby 2030 (Scope 3)8CO2 emissions intensity (kg CO2 / t
raw potato)

121

119

124

122

119

117

124

+2.5%

15% improvement in water-use efficiency
in water-stressed regions by 20258

Water-use efficiency in water-stressedregions (m3 / t raw potato)

56.2

53.6

62.7

56.4

52.1

46.0

50.9

-9.4%

20% of all potato crops grown for McCain
to use stress-tolerant varieties by 202516% of water stress-tolerant varieties

17.4%

17.2%

18.1%

19.1%

19.7%

21.5%

21.9%

+4.5% pts
Target maintained# of training hours transferred to farmers

N/A>34,000>32,500>27,500>21,000>29,000>23,500>167,500# of instances in which we transfer
knowledge or support related to technology(e.g., decision support systems) to farmers18

146

210

237

257

273

243

253

Implementing regenerative agriculture
practices across 100% of McCain potato
acres by 2030 (baseline 2022)7

Training, technology and knowledgetransfer to farmers (training hours
baseline 2018)17

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
FarmingResource-Efficient
Operations

Good Food

Status+1,619Thriving
Communities

StrongFoundations

43

On track

Monitoring

Needs attention

For more information on our progress, see our 2023 Supplementary Data.

Resource-Efficient Operations
Commitment

Indicator

2017

2018

2019

2020

2021

2022

2023

Progress (F17–F23)

50% absolute reduction in GHG emissions
Absolute Scope 1 & 2 emissions (tCO2e)(Scope 1 & 2) by 2030 (25% reduction by 2025)10

1,459,687 1,464,255 1,441,638

1,358,806 1,329,238

1,329,244 1,315,973

100% renewable electricity by 2030 (60%by 2025)10

Renewable electricity (% of total
electrical energy)

0%

0%

1.2%

12.3%

14.6%

18.1%

21.2%

+21.2% pts

Ceasing use of coal by 202510

Coal consumption (% of total
non-electrical energy)

8.2%

8.7%

7.9%

7.8%

5.6%

4.8%

2.7%

-5.5% pts

60% intensity reduction in GHG emissions(Scope 1 & 2) by 203010

GHG emissions intensity (kg CO2e/t
finished product)

334

331

326

321

301

284

263

-21.3%

30% intensity reduction in GHG emissions(Scope 3) by 203010

GHG emissions intensity (kg CO2e/t
finished product)

892

983

975

969

896

944

882

-1.1%

15% improvement in water-use efficiency
in seven priority plants by 202510

Water-use intensity in seven priority
plants (m³ / t finished product)

8.0

8.3

8.2

7.6

7.1

7.1

6.7

-16.3%
Target achieved

Zero waste to landfill by 202510

Waste to landfill (%)

2.3%

2.8%

1.9%

1.2%

2.0%

1.2%

0.6%

-1.7% pts

50% reduction in food waste intensity
across operations by 2030 (baseline 2020)10

Food waste intensity (kg/tfinished product)

N/A

N/A

N/A

137

128

114

124

-9.5%

100% of our packaging designed to be

Recyclable, reusable or compostable
packaging materials (%)

96.2%

96.1%

96.1%

96.8%

97.1%

96.8%

97.1%

+0.9% pts

100% of our paper packaging designed
to be recycled by 202511

Paper packaging (% recyclable)

97.7%

97.7%

97.9%

97.9%

98.3%

98.1%

98.5%

+0.8% pts

100% of our plastic packaging designed
to be recycled by 202511

Plastic packaging (% recyclable)

85.6%

85.7%

85.7%

86.8%

89.9%

88.3%

87.8%

+2.2% pts

recyclable, reusable or compostable by 202511

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
FarmingResource-Efficient
Operations

Good Food

Status

-9.8%

Thriving
Communities

StrongFoundations

44

On track

Monitoring

Needs attention

Good Food
Commitment

Indicator

2017

2018

2019

2020

2021

2022

2023

Progress (F17–F23)

Removing palm oil from our frying
operations for McCain branded
products by 2025

Palm oil (% total oil usage)

14%

14%

14%

13%

13%

13%

12%

-2.0% pts

% change in potato sodium (salesweighted average)

N/A

N/A

4.2%

4.6%

6.3%

7.5%

4.1%

4.1%

% change in appetizer sodium (salesweighted average)

N/A

N/A

0.5%

-0.6%

-0.3%

-2.7%

-6.6%

-6.6%

Providing clear and transparent nutritional
information (baseline 2020)12

Number of countries where McCain
participates in voluntary retail
FOP labelling

N/A

N/A

N/A

16

17

18

18

+18

100% use of cage-free eggs by 2025(baseline 2021)12

Cage-free usage (%)

N/A

N/A

N/A

N/A

84%

92%

91%

+7.0% pts

Facilities GFSI certified (%)

100%

100%

100%

100%

100%

100%

100%

100%
Target maintained

Tier one ingredient supplier facilities GFSI
certified (%)

N/A

N/A

N/A

N/A

N/A

95%

96%

+1.0% pts

15% reduction in sodium (sales-weighted
average) in our McCain branded potato
and appetizer products by 2025(baseline 2018)19

100% Global Food Safety Initiative (“GFSI”)
certification at all McCain owned facilities
and tier one ingredient supplier facilities(tier one supplier facilities baseline 2022)12

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
FarmingResource-Efficient
Operations

Good Food

Thriving
Communities

StatusStrongFoundations45

On track

Monitoring

Needs attention

Thriving Communities
Commitment

Indicator

2017

2018

2019

2020

2021

2022

2023

Progress (F17–F23)

Improving the livelihoods of 10,000
vulnerable farmers and families by 2025(baseline 2018)14# of beneficiaries

N/A

911

408

727

952

2,921

2,716

+8,635

Supporting farmers and families by
donating 200 million meals to food banks
and NGOs by 202513# of meals donated

34.8M

30.1M

24.2M

53.6M

9.8M

10.9M

11.9M

+175.3M

Supporting farmers & families with 50,000
hours of employee volunteering by 2025(baseline 2022)# of employee volunteering hours

N/A

N/A

N/A

N/A

N/A

6,432

17,384+23,816

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
FarmingResource-Efficient
Operations

Good Food

Thriving
Communities

StatusStrongFoundations

46

References.
1 Forno de Minas is in scope for the verification opinion, but out of scope for the 2023 Summary
Sustainability Report. As a result, the total GHG emissions will differ between the opinion
and Report.
2 Includes Day & Ross and acquisitions that we have completed in the last 24 months.
3 Canadian Alliance for Net-Zero Agri-food.
4 ‘Onboarding’ and ‘Engaged’ are the first two levels of regenerative agriculture proficiency
in our Regenerative Agriculture Potato Framework. For more information, see our
Regenerative Agriculture Framework here.
5 Farm of the Future Canada Year 1 Report; Farm of the Future Canada Year 2 Report.
6 Net Zero Climate.
7 Data is quantified based on farmer self-reporting and internal review. Acreage refers
to surface area.
8 Excludes CêlaVita and Lutosa. Emissions and water-use intensity for 2017–2023 werere-calculated using a more accurate model which increases reporting reliability.
Updates to the data were immaterial.
9 World Meteorological Organization.
10 Includes McCain Appetizers Europe (formerly “Scelta Products”, “Appetizers Europe”).
Emissions, water and waste for 2017–2023 were re-calculated with McCain Appetizers
Europe (formerly “Scelta Products”, “Appetizers Europe”) included, which resulted inchanges to prior year reporting.

13 Methodology for calculating # of meal donations from 2021– 2023 was refined
to increase accuracy.
14 Methodology for calculating the # of beneficiaries has been amended to increase data
accuracy and clarity. In prior years, the # of beneficiaries was summed cumulatively to
account for positive impact to beneficiaries over multiple years. In 2023 and going forward,
the methodology has been changed to identify only new beneficiaries added each year. All
previous years have been recalculated in accordance with the new methodology.
15 Methodology for calculating the # of research partnerships and coalitions has been amended
to increase data accuracy and clarity. In prior years, the # of research partnerships andcoalitions was summed cumulatively. In 2023 and going forward, the methodology has
been changed to identify only new research partnerships and coalitions added each year.
All previous years have been recalculated in accordance with the new methodology.
16 Excludes Lutosa.
17 Excludes CêlaVita and Lutosa.
18 Knowledge or support may include technology recommendations, negotiating discounts,
organizing technology demos, etc.
19 Excludes Ad van Geloven, and Lutosa. Excludes Private Label and Quick Service Restaurant
sales volumes.

11 Excludes Ad van Geloven, Great American Snacks, and Sérya. In 2023, data was re-calculatedusing a more accurate model, which resulted in immaterial changes to prior year reporting.
12 Excludes Ad van Geloven, CêlaVita, Great American Snacks, Lutosa and Sérya.

Contents

A message from our
President & CEO

Sustainability
at McCain

Deep Dive: A year in the life of aregenerative agriculture transformation

Smart & Sustainable
FarmingResource-Efficient
Operations

Good Food

Thriving
Communities

StrongFoundations47

We welcome any feedback.
Contact us at sustainability@mccain.com.