The goal of our 2018 Sustainability Report is to provide a transparent account of our sustainability management approach and performance. We prepared this report using the Global Reporting Initiative (GRI) G4 guidelines, following the Core option and the G4 Food Processing Sector Disclosure for our focus topics whenever possible.

An index of the GRI Standard Disclosures and their location in the report is included in the following pages of this chapter.

In 2015, in partnership with our parent company JBS USA, Pilgrim’s conducted a corporate materiality assessment, and this report is based on the most relevant sustainability issues that were identified in that analysis. The five areas we prioritized from that assessment are: Animal Welfare, Energy and Climate Change, Product Integrity, Team Member Health and Safety and Water. This report also focuses on additional material issues, including emissions, recycling, waste, human resources, the communities in which we operate and our relationships with our suppliers.

This is our fourth Pilgrim’s Sustainability Report and is inclusive of all of our facilities in England, France, Mexico, the Netherlands, Northern Ireland, Puerto Rico and the United States. The report describes our activities and performance from our own operations and information on our supply chain whenever possible for the calendar year 2018. All subsidiaries and wholly-owned companies are included in the reporting scope.

This report is published online at sustainability.pilgrims.com. We welcome your comments and feedback on this report at sustainability@pilgrims.com.

Pilgrim’s 2018 Sustainability Report was prepared using the GRI Standards. We have followed the Core option and the G4 Sector Disclosure Food Processing (FP) for our focus topics wherever possible.

General Disclosures
Disclosures Link
GRI 101: Foundation (2016)
GRI 102: General Disclosures (2016)
Organizational Profile
GRI 102-1 Name of the organization Who We Are > About Our Company
GRI 102-2 Activities, brands, products, and services
GRI 102-3 Location of headquarters
GRI 102-4 Location of operations Who We Are > About Our Company
GRI 102-5 Ownership and legal form Who We Are > About Our Company
GRI 102-6 Markets served Who We Are > About Our Company
GRI 102-7 Scale of the organization
GRI 102-8 Information on employees and other workers Team Members > Building a Diverse and Dedicated Workforce > 2018 Progress
GRI 102-9 Supply chain Suppliers
GRI 102-10 Significant changes to the organization and its supply chain On September 8, 2017, we acquired 100% of the issued and outstanding shares of Moy Park, one of Europe’s leading poultry producers. We started to include Moy Park’s operations in our reporting with the 2017 Sustainability Update.
GRI 102-11 Precautionary principle or approach Our risk management approach is inclusive of the material issues identified by our stakeholders, compliance audits and our high priority areas identified by our executive team.
GRI 102-12 External initiatives Who We Are > Collaboration for a Better Future
GRI 102-13 Membership of associations Who We Are > Collaboration for a Better Future
Strategy
GRI 102-14 Statement from senior decision-maker A Message from our President and CEO
GRI 102-15 Key impacts, risks, and opportunities
Ethics & Integrity
GRI 102-16 Values, principles, standards, and norms of behavior Who We Are > Our Culture
Governance
GRI 102-18 Governance structure
Stakeholder Engagement
GRI 102-40 List of stakeholder groups Who We Are > Our Approach
GRI 102-41 Collective bargaining agreements Team Members > Our Management Approach
GRI 102-42 Identifying and selecting stakeholders Who We Are > Our Approach
GRI 102-43 Approach to stakeholder engagement
GRI 102-44 Key topics and concerns raised Who We Are > Our Approach
Reporting Practice
GRI 102-45 Entities included in the consolidated financial statements About This Report
GRI 102-46 Defining report content and topic boundaries
GRI 102-47 List of material topics Who We Are > Our Approach
GRI 102-48 Restatements of information There are no significant restatements. In some cases, data collection was improved and/or calculation errors were corrected for previous years.
GRI 102-49 Changes in reporting There are no significant changes in the reporting scope.
GRI 102-50 Reporting period About This Report
GRI 102-51 Date of most recent report
GRI 102-52 Reporting cycle Pilgrim’s publishes a comprehensive Sustainability Report every two years and a shorter Sustainability Report Update in between.
GRI 102-53 Contact point for questions regarding the report About This Report
GRI 102-54 Claims of reporting in accordance with the GRI Standards About This Report
GRI 102-55 GRI content index About This Report
GRI 102-56 External assurance We did not seek external assurance for this report.
Material Topics
Economic Link
GRI 201: Economic Performance (2016)
GRI 201/103 Management approach disclosures
GRI 201-1 Direct economic value generated and distributed
GRI 201-3 Defined benefit plan obligations and other retirement plans 10-K Report for FY 2018: pg. 81-86
GRI 201-4 Financial assistance received from government 10-K Report for FY 2018: pg. 78
GRI 204: Procurement Practices (2016)
GRI 204/103 Management approach disclosures
GRI 204-1 Proportion of spending on local suppliers
GRI 205: Anti-Corruption (2016)
GRI 205/103 Management approach disclosures Who We Are > Leadership and Governance > Corporate Governance and Compliance
GRI 205-2 Communication and training about anti-corruption policies and procedures Who We Are > Leadership and Governance > Corporate Governance and Compliance
Environmental Link
GRI 302: Energy (2016)
GRI 302/103 Management approach disclosures
GRI 302-1 Energy consumption within the organization Environment > Energy and Emissions > Energy Performance
GRI 302-3 Energy intensity Environment > Energy and Emissions > Energy Performance
GRI 303: Water & Effluents (2016)
GRI 303/103 Management approach disclosures
GRI 303-1 Water withdrawal by source
GRI 305: Emissions (2016)
GRI 305/103 Management approach disclosures
GRI 305-1 Direct (Scope 1) GHG emissions Environment > Energy and Emissions > GHG Performance
GRI 305-2 Energy indirect (Scope 2) GHG emissions Environment > Energy and Emissions > GHG Performance
GRI 305-4 GHG emissions intensity Environment > Energy and Emissions > GHG Performance
GRI 306: Effluents and Waste (2016)
GRI 306/103 Management approach disclosures
GRI 306-1 Water discharge by quality and destination Environment > Water > 2018 Progress
GRI 306-2 Waste by type and disposal method Environment > Waste Reduction and Recycling > Waste Performance
GRI 307: Environmental Compliance (2016)
GRI 307/103 Management approach disclosures
GRI 308: Supplier Environmental Assessment (2016)
GRI 308/103 Management approach disclosures
GRI 308-1 New suppliers that were screened using environmental criteria
Social Link
GRI 401: Employment (2016)
GRI 401/103 Management approach disclosures
GRI 401-1 New employee hires and employee turnover
GRI 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Team Members > Building a Diverse and Dedicated Workforce >Compensation and Benefits
GRI 403: Occupational Health and Safety (2016)
GRI 403/103 Management approach disclosures Team Members > Health and Safety
GRI 403-1 Workers representation in formal joint management–worker health and safety committees Team Members > Health and Safety > Our Approach
GRI 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities
GRI 403-3

Workers with high incidence or high risk of diseases related to their occupation

Team Members > Health and Safety > Promoting Team Member Health
GRI 405: Diversity and Equal Opportunity (2016)
GRI 405/103 Management approach disclosures
GRI 405-1 Diversity of governance bodies and employees
GRI 406: Non-Discrimination 2016
GRI 406/103 Management approach disclosures
GRI 407: Freedom of Association and Collective Bargaining (2016)
GRI 407/103 Management approach disclosures
GRI 408: Child Labor (2016)
GRI 408/103 Management approach disclosures
GRI 409: Forced or Compulsory Labor (2016)
GRI 409/103 Management approach disclosures
GRI 412: Human Rights Assessment (2016)
GRI 412/103 Management approach disclosures Team Members > Our Management Approach
GRI 414: Supplier Social Assessment (2016)
GRI 414/103 Management approach disclosures
GRI 414-1 New suppliers that were screened using social criteria
Animal Welfare
G4-DMA Management approach disclosures
G4-FP9 (formerly) Percentage and total of animals raised and/or processed, by species and breed type
G4-FP10 (formerly) Policies and practices, by species and breed type, relate to physical alterations and the use of anesthetics Animal Welfare > Health and Nutrition > Veterinary Care

G4-FP11
(formerly)

Percentage and total number of animals raised and/or processed by species and breed type, per housing type
G4-FP12 (formerly) Policies and practices on antibiotic, anti-inflammatory, hormone and/or growth promotion treatments, by species and breed type
GRI 416: Customer Health and Safety (2016)
GRI 416/103 Management approach disclosures Customers and Consumers > Food Safety and Quality > Our Approach
GRI 416-1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement
G4-FP5 (formerly) Percentage of production volume manufactured in sites certified by an independent third party according to internationally recognized food safety system standards Customers and Consumers > Food Safety and Quality > 2018 Progress
GRI 417: Marketing and Labeling (2016)
GRI 417/103 Management approach disclosures Customers and Consumers > Customer and Consumer Engagement
GRI 417-1 Requirements for product and service information and labeling
GRI 419: Socioeconomic Compliance (2016)
GRI 419/103 Management approach disclosures

GRI 103: Management approach disclosures 2016 was used in preparing this report. It comprises theexplanation of the material topic and its boundaries (103-1),the management approach and its components (103-2)and evaluation of the management approach (103-3).