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EXHIBIT 1: MAPLE LEAF'S SUSTAINABLE MEAT PRINCIPLES Sustainable meat is produced with respect, within environmental limits, and consumed In moderation as part of a healthy
EXHIBIT 1: MAPLE LEAF'S SUSTAINABLE MEAT PRINCIPLES Sustainable meat is produced with respect, within environmental limits, and consumed In moderation as part of a healthy balanced diet. Sustainable meat is nutntious. healthy and safe. Sustainable meal is accessible, affordable and eaten in moderation, in balance with other nutrients, consistent with nutritional guidelines. a Sustainable meat is produced adhering to environmental standards that measurably reduce impacts across the iifecycie; limiting greenhouse gas emissions and impacts on water quality and quantity, avoiding loss of biodiversity and eliminating waste. a Sustainable meal comes from animals that are raised with care, with minimal use of antibiotics and to standards that respect the Five Freedoms of animal welfare. . Sustainable meat is produced through a resilient, fair and efcient food system that makes optimal use of land and natural resources. . Sustainable meat is produced by a company that is responsive to the needs of society and transparently demonstrates our accountability to social and environmental responsibility. Historically, MLF had been a diversified and integrated agri-farms, meat, and bakery business. Its operations included feed production, hog and poultry production, primary and secondary meat processing, rendering, global trading, and fresh and frozen bakery and pasta products. It ran 12 prepared meat facilities, two plant protein facilities, two further processed poultry facilities, three hatcheries, six fresh poultry processing facilities, more than 180 pig barns, two fresh pork processing facilities, and two distribution centres, and it contracted with more than 500 chicken farmers. * MLF's leading brands included Maple Leaf, Maple Leaf Prime, Maple Leaf Natural Selections, Schneiders, Country Naturals, Mina, Greenfield Natural Meat Company, Lightlife, and Field Roast Grain Meat Company. As of 2019, the company had approximately 12,500 employees and conducted business in Canada, the United States, and Asia. It was a publicly owned company, with shares trading on the Toronto Stock Exchange (TSX: MFI). Sales in 2018 were almost CA$3.5 billion with net earnings of $101.3 million. Its 2018 adjusted earnings before interest, income taxes, depreciation, amortization, restructuring and other related costs (EBITDA) margin was 9.9 per cent." With the structural rise in the Canadian dollar, which significantly threatened the long-term profitability of MLF's currency-exposed businesses, the company divested its non-core meat businesses. Commencing in 2007 and completed in 2014, one of MLF's major divestments was its stake in the Canada Bread Company Limited. MLF also invested more than $1 billion in its supply chain and operating systems to consolidate aging inefficient plants and created a highly cost-competitive prepared-meats manufacturing network. The result was a significant expansion in MLF's EBITDA margin and structural profitability, but on a lower revenue base and a largely Canadian geographic footprint. It had been many years of exhausting change, but the company now had the resources and focus to implement a comprehensive approach to sustainability, which Mccain believed was deeply important. With the sale of the bakery business in 2014, employees had been asking what the company stood for and where it was going as a "pure-play" meat company.EXCERPTS FROM MAPLE LEAF FOODS SUSTAINABILITY REPORT 20181 Life Cycle Assessment To gain an insight into the relationships between the various production phases of pork and their relative environmental impact(s), we conducted a comprehensive life cycle assessment (LCA) of Maple Leaf bacon (375 g product). Our LCA was conducted according to the requirements of ISO 14040 and ISO 14044 [see Exhibit 1]. LCA is a useful tool to identify and prioritize initiatives that will further reduce the environmental impacts of the product that is assessed. As the results show, environmental impacts occur throughout the entire pork production chain, with the most significant impacts coming from feed production pig raising. The study highlighted several recommendations that will help Maple Leaf Foods realize a significant reduction in our environmental impact. Optimizing feed composition, considering different transportation modes, and investigating ways for further reduction of methane emissions from barns are among the recommendations. We are using this LCA as one tool and input to develop a comprehensive carbon management strategy for Maple Leaf Foods. In 2018, we also supported LCAs performed by the Chicken Farmers of Canada and the Canada Pork Council. Maple Leaf provided data from our own operations to support these industry initiatives. These LCAs will help the Canadian chicken and pork sectors continuously improve on measuring and reducing our industry's environmental impacts.Case D: Supply Chain 1. What is most valued by suppliers? How does the Maple Leaf Foods sustainability program potentially help or hurt these suppliers? 2. What does Maple Leaf Foods need from suppliers? 3. How does information flow between the employees and Maple Leaf Foods
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