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DarDen SuStainability

2012 Report

Darden Restaurants is the world’s largest full-service

restaurant company, employing 180,000 workers

and serving more than 400 million meals each year.

the inaugural Sustainability report released in May

2010 laid the foundation of our sustainability strategy,

outlined our most material issues and described

many of the tactics we employ to reduce our

environmental footprint, save money and enhance

our competitiveness.

through this 2012 Sustainability report, we hope to

share the insights we have learned, the progress we

have made on our goals and outline how partnerships

with key stakeholders have advanced our strategy

over the last two years. Darden’s growth and

expansion has placed an increasing importance on

our sustainability efforts and the need to understand

the breadth and depth of our social, environmental

and supply chain footprints.

SustainabilityWelcome to DaRDen’S SeconD

Report

Sustainability

People and Planet are familiar terms for many

companies. as we have increased our understanding

of sustainability at Darden, we’ve come to see that

there are a host of sustainability challenges – and

opportunities – ingrained into what we put on the

Plate. this includes our long-time focus on food

safety, seafood stewardship and animal welfare. it also

includes our heightened attention to the nutritional

content of our meals, as well as the early steps we

are taking to better understand the environmental

“footprint” of the foods we serve.

People Planet Plate

“People, Planet & Plate” exemplify the full breadth of our sustainability efforts, reflecting the investments

in our culture, restaurants and supply chain.

2012 Darden Sustainability Report 4


Headquartered in Orlando, Florida, Darden Restaurants

(NYSE: DRI) is comprised of multiple restaurant brands

and at the end of FY2012, we operated a total of 1,993

Red Lobster®, Olive Garden®, LongHorn Steakhouse®,

The Capital Grille®, Bahama Breeze®, Eddie V’s® and

Seasons 52® restaurants in the United States and Canada.

We own and operate all of our restaurants in the united

States and Canada. Darden’s sales from continuing

operations were $7.99 billion in Fy2012 compared to

$7.50 billion in Fy2011. Darden’s acquisition of eddie V's

Prime Seafood® and Wildfish Seafood Grille® restaurant

brands occurred in Fy2012, consisting of eight eddie V's

restaurants and three Wildfish restaurants. For more

information about Darden, see www.darden.com/about.

Darden at a Glance

http://www.darden.com/about

Darden’s growth and expansion has placed an increasing importance on our sustainability efforts and the need for a clear understanding of the breadth and depth of our social, environmental and supply chain footprint.

www.darden.com/sustainability7

Gri index 54

Table of Contents

People

executive Message 8Our Commitment to Sustainability 10Sustainability Governance & Stakeholder engagement 14Sustainability reporting 17

Strong Culture 20economic impact 24 Strategic Partnerships 26Community investments 28

PlanetGreen buildings 32energy efficiency 34Water Conservation 36Waste reduction 38

Platenutritional Commitments 42Seafood Stewardship 44Supply Chain 48Food Safety and Quality 50


to our Stakeholders At Darden Restaurants, our objective is to build a great

company. From its beginnings as one Red Lobster

restaurant in 1968, Darden has grown to become the

largest full-service restaurant company in the world,

providing more than one million guest experiences every

day. Clearly, that tremendous growth – and the strong

operational skills and business acumen it reflects – is one

key part of being a great company. but at Darden, we think

there’s more to it than that.

Great companies also support and develop their

employees, enabling them to fulfill their personal and

professional dreams. Great companies understand and

embrace their obligations to society. they continually work

to make a difference on critical environmental issues and

help find solutions to larger environmental challenges. and

they actively work to create social value by contributing to

the success and well-being of the people whose lives they

touch. in short, truly great companies are companies that

matter. Darden strives daily to be that kind of company.

Darden’s commitment to sustainability is an integral

part of achieving that vision, and an explicit part of our

corporate strategy. indeed, we recognize that making a

meaningful positive difference on a host of sustainability

issues is essential for the continued growth of our

company. the world is more interconnected than ever

and a range of macro forces – from rising energy costs to

water scarcity to climate change to declining fish stocks

– are shaping our operating environment. these are not

just distant, global issues, but ones that can have direct

impacts on the availability, cost and safety of the food

supply and other resources on which our business so

fundamentally depends. Clearly, a single company cannot

completely change the broad forces at play. but, Darden

is taking proactive steps within our own operations to

ensure we are helping move things in the right direction

in this changing environment. and, we are using our

scale and influence to help solve broader sustainability

challenges within our supply chain.

Over the last two years we have focused, in particular, on

resource use within our own operations. in 2009, we set

a target to reduce our per restaurant energy and water

usage by 15 percent by 2015. We are pleased to report

that by Fy2011, we had reduced per restaurant water

usage by 17 percent on an aggregate basis, exceeding

our water goal. this reduction translates into more than 1

billion gallons of water saved – even while opening more

than 200 new restaurants. We have also made significant

strides toward our energy goal, having also reduced per

restaurant energy use by almost 8 percent by Fy2011.

However, with both commitments, we have room for

improvement and will continue to seek reductions.


Darden also focuses on opportunities where we can

improve the sustainability of our supply chain by

partnering with key suppliers, scientists, industries and

communities. in 2011, as part of Darden’s membership

in the Clinton Global initiative, we announced a three-

year commitment to rebuild troubled fisheries through

targeted Fishery improvement Projects (FiPs). the initial

FiP was launched in 2011 in the u.S. Gulf of Mexico, in

conjunction with Publix Super Markets and Sustainable

Fisheries Partnership.

in addition, we have worked to expand and accelerate

our efforts to provide guests with transparency about

the nutritional content of the foods we serve, and with

increased choice and variety of menu options to help

them meet their individual health goals. in Fy2012,

working with the Partnership for a Healthier america,

Darden announced the most comprehensive health

and wellness commitments of any restaurant company

to-date. Darden has pledged to reduce our overall calorie

and sodium footprints by 10 percent by 2016, and

20 percent by 2021. We also committed to enhance the

nutrition credentials of our children’s menus by July 2012.

the journey to achieve certain goals can be quite

complex, presenting issues or barriers that may be

outside our scope of control. For example, while we

have taken steps to increase recycling within our

own operations, limitations in municipal recycling or

composting infrastructure impact the speed with which

we can reach our goal of one day sending “zero waste to

landfill.” additionally, we are early in our understanding

of the full environmental “footprint” of the foods we

purchase, exploring steps we can take to reduce it.

but with each issue, time and effort provides greater

understanding and the ability to reach our goal.

While we do not claim to know all the necessary steps in

the sustainability journey, we are firmly convinced that

our sustainability efforts create value for our company.

between Fy2008 and Fy2011, Darden realized $18

million in cost savings as a result of our investments

in energy efficiency and resource conservation – and

we estimate that between Fy2012 and Fy2016, we will

save an additional $10 - $12 million in costs. While more

difficult to quantify, we also believe that over time our

sustainability efforts will help us proactively identify and

manage risks, insulate our supply chain from potential

disruptions, attract and retain employees, expand our

appeal to a broader base of guests and strengthen our

relationships with other stakeholders.

We know, too, that our sustainability efforts create value

for people and society. Our Darden Harvest program,

which distributes surplus high-quality, prepared foods

from our restaurants to hunger relief organizations, is one

example. in fiscal 2012, Darden officially surpassed 56

million pounds of food donated since the program began

in 2004. another example is Darden’s recipe for Success™

initiative which assists young people – particularly

those from disadvantaged backgrounds – in navigating

the postsecondary education process, developing the

skills they need to be successful in their chosen path,

and providing them the financial support to pursue it.

and particularly with our own talented employees, we

practice sustainability through training, educational

opportunities and professional advancement further

reinforcing our commitment.

to build on what we’ve accomplished thus far, we have

recently initiated an effort to more formally embed

sustainability into our governance and accountability

mechanisms, ensuring sustainability considerations

are being consistently integrated into decision-making

across our company. We fundamentally believe

sustainability presents opportunities to simultaneously

create value for our company and society. yet, we also

recognize that sustainability can necessitate tradeoffs

and present difficult challenges. nonetheless, we

believe it is an absolutely essential challenge to be

taking on – and an integral part of being a company

that matters.

Clarence Otis, Jr.Chairman & Chief Executive Officer

Andrew H. MadsenPresident & Chief Operating Officer


Darden’s vision is to be a company that positively affects our guests, employees, communities and business partners – quite simply, we want to be a company that matters. While the statement is simple, the actions needed to support it are quite complex.

We must first demonstrate strong financial performance. this is an essential foundation, enabling our company to grow and succeed and, in the process, continue to expand our ability to positively affect those around us. While a necessary condition for being a company that matters, it alone is not sufficient.

We must also prove to be a special place for our employees. Darden is in a people-intensive, service business. Our 180,000 employees are on the front lines every day, and they are the ones who make the difference between a good guest experience and a great one. We are firmly convinced that building and maintaining a strong, people-focused culture is the single most important reason our company has been as successful as it has.

We believe there is still one more critical component to being a company that matters: there needs to be a larger purpose to what we do. For Darden, that larger purpose is working to make a positive difference in the lives of others – which we describe as our commitment to “nourish and delight everyone we serve.” We mean this in the literal sense of providing our guests with delicious, high-quality food in a comfortable and welcoming environment, of course. but it also means creating broader social value through how we contribute to the well-being and development of our employees, the success of our business partners and the fabric of the communities where we operate.

our commitment to Sustainability

We believe there is still one more critical component to being a company that matters: there needs to be a larger purpose to what we do.


APPRoACh Over the last several years, Darden has come to see that our commitment to sustainability is a central part of achieving our larger purpose. While we have addressed various aspects of sustainability, such as being a long-standing advocate for seafood stewardship, in recent years we have worked to develop a more integrated and strategic approach to managing sustainability issues in our business knowing that we fundamentally rely on natural resources.

like nearly all companies, Darden depends on natural resources: from the energy we use to light, cool and heat our restaurants, to the water we use to cook and clean. But, as a restaurant company, we also rely on natural resources in some more unique and tangible ways. namely, the basic ingredients for the meals we serve depend on healthy marine and agricultural ecosystems.

today’s global food production system supplies food on an astounding scale, more safely and efficiently, with greater variety than ever before. However, it is also being

called upon to feed a rapidly growing population that is consuming ever more from a finite resource base. In fact, the world needs to produce as much food in the next 40 years as it has in the last 8,000 years. clearly, this is a global sustainability challenge that necessitates global responses – no single actor can solve it alone.

But it is a challenge with the potential to directly impact Darden either through increased energy costs or commodity prices, the depletion of certain species of seafood and/or other disruptions to our food supply chain. as a result, we have a vested interest in helping conserve and preserve the natural resources on which we depend. In fact, in this sustainability challenge, Darden also sees opportunity. We think conservation will be a competitive advantage – it will lower our operating costs, expand our margins, insulate our supply chain and ultimately increase the success of our business. Finally, we believe our approach to sustainability helps us attract and motivate our employees who increasingly want to work for a company they believe in.


We know that simply focusing within our own four walls is not enough. Indeed, given the unique connection between food and natural resources, sustainability requires working from ‘farm to fork.’ We can’t do that all on our own but, given our size and scale, we think we have the opportunity to positively influence the broader system. that’s why our other key area of focus is our supply chain.

this includes working to minimize the environmental impacts of the packaging and distribution of the food and other products we buy, such as through our Supplier Packaging optimization program. It also includes efforts to better understand and manage the social and environmental impacts of the food production process itself. We are furthest down this path on seafood stewardship and animal welfare, both of which have been areas of long-time focus for Darden. We have also begun work to better understand the carbon/energy and water “footprints” of some of the foods we buy and are exploring ways we can minimize them. admittedly, our efforts in this area are in their early stages with issues and solutions that are not always within our sphere of control.

nonetheless, we think it is critical work, with dual drivers and dual benefits. not only is it the right thing to do, but it’s also an important part of ensuring we are doing everything we can to insulate our supply chain from the range of forces that can affect the cost, availability or quality of the food supply.

Finally, Darden’s commitment to improve the nutritional value of our food shows our prioritization of health and wellness – an issue that spans across our supply chain and into our restaurants. Darden is committed to supporting guests in achieving their individual health goals and, over the last few years, has launched a major effort aimed at better understanding, more clearly communicating and continually enhancing the nutritional content of the food we serve. In FY2012, we announced a formal alliance with the Partnership for a Healthier america, as part of which Darden has pledged to reduce its overall calorie and sodium footprint by 10 percent by 2016 and 20 percent by 2021 and to enhance the nutrition credentials of its children’s menus.

Given our dependence on natural resources, Darden is taking a resource-focused approach to sustainability. In short, our goal is to reduce the amount of resources we use at every restaurant and manage the issues ‘within our four walls’ namely, the universal resource inputs and outputs of our direct operations, such as the energy and water we use to run our restaurants, and the waste we generate in doing so.

to drive our performance in these key areas, in 2009 we set an ambitious target that we call “15x15 over Zero.” this means we are committed to reducing our per-restaurant energy and water use by 15 percent by 2015, using 2008 as a baseline and, over time, sending zero waste to landfill.* and we have made considerable

progress: by the end of FY2011, we had already reduced our per-restaurant energy use by nearly 8 percent and our aggregate per-restaurant water use by almost 17 percent. We also expanded the recycling capacity across our restaurants, increased our landfill diversion rate and committed to launch pilot projects in a select number of our restaurants that will advance our ability to become zero-waste.

*Darden chose to reset the baseline to FY2008 from FY2006 as it relates to our 15x15 over Zero goals given the accuracy of data being collected and measured to ensure that our progress was reported in the most accurate manner possible.

GoAlS

oPPoRTuniTieS


We have also begun work to better understand the

carbon/energy and water “footprints” of some of

the foods we buy and are exploring ways we can

minimize them.


Sustainability Governance & Stakeholder engagement

At Darden, we know having clear governance

and accountability mechanisms are essential

to meeting our sustainability commitments.

Since we began this journey, we’ve continually

adapted our systems and structures to

maintain strong performance while planning

for future challenges. today, governance for

our sustainability strategy and commitments

resides at three levels: board of Directors,

executive leadership and Senior Management.


exeCuTive leADeRShiPDarden’s Sustainability leadership council (Slc) consists of the senior executives from most brands and many business units, including operations, supply chain, government affairs, human resources and business development. the Slc meets three times a year, advising on sustainability strategy, championing implementation in their divisions or brands and providing accountability for performance toward meeting sustainability goals and objectives.

SenioR MAnAGeMenTDarden coordinates implementation of its sustainability strategy, external stakeholder engagement and communications through a small team within Government & community affairs. three cross-functional teams are tasked with developing and implementing specific sustainability initiatives:

ENERGY, WATER & WASTE: team focuses on our commitments to reduce energy and water by 15 percent by 2015, advance zero waste to landfill, and deliver operational savings. members are from purchasing (equipment), development (buildings), operations and finance.

SUppLY CHAIN: team focuses on the environmental, social and animal welfare impacts across our $3 billion dollar supply chain. members include purchasing, total quality (food safety) and supply chain (seafood and other proteins).

SUSTAINABILITY CULTURE: team focuses on building the awareness and behaviors needed from all 180,000 employees to achieve our sustainability goals. this recently reconstituted team includes members from human resources (internal communications, learning & development), external communications, interactive, brand communications and government and community affairs.

STAkeholDeR enGAGeMenTUnderpinning our sustainability strategy is Darden’s commitment to collaboration and stakeholder engagement. many of the issues we are working to address are complex – and complex problems require collaborative solutions. there is much we can learn from the perspective and experience of others, including those groups that challenge us, and we are committed to finding common ground. that’s why we are working with our business partners, government agencies, academic institutions, nongovernmental organizations and others as part of our sustainability efforts (see Strategic Partnerships).

inTeGRATionDarden has integrated a variety of sustainability measures into our operating standards for restaurants, such as requirements related to energy and water efficiency. We have also initiated an effort to more formally embed sustainability into our governance and accountability mechanisms to ensure sustainability considerations are being consistently integrated into decision-making across our company. We will share more about the results of this effort in future communications.

BoARD of DiReCToRSGiven the role of sustainability in our business, matters previously handled by the public Responsibility Committee (sustainability strategy and performance, government relations and philanthropy and community affairs) are now handled at the full Board level. Darden has amended the board’s Corporate Governance Guidelines and the governance section of our website to reflect this change. Sustainability-related issues are brought to the board of Directors’ attention by the Chairman and CeO.

additionally, Darden believes communication between the board, stockholders and other interested parties is an important part of the company’s corporate governance process. information on the process for interested individuals to raise issues with Darden’s board can be found on our website www.darden.com/corporate. additionally, the site includes information on Darden’s overall corporate governance framework and guidelines, board composition, board committee charters and Code of business Conduct and ethics.

http://www.darden.com/corporate/


PeoplePlat

e

Planet

Food Quality & Safety

Supply Chain

Seaf

ood

Stew

ards

hip

Strategic Partnerships

Strong Culture

Water Conservation

Waste Reduction

Nutritional Comm

itment

Energy Efficiency

Green Building

Com

mun

ity In

vest

men

ts

Economic Impact


Sustainability ReportingThis report includes performance data on our key sustainability indicators for the last three fiscal years - FY2009 to FY2011 - picking up where the last report left off at FY2008. the report focuses on material developments and activities related to sustainability at Darden from the prior report to today.

Content for the report was determined based on a review and update of the materiality analysis we initially conducted in Fy2008, as well as ongoing internal efforts to develop, refine and implement our corporate-wide sustainability strategy. the report is designed to be principally web-based, though the complete content is also available within this PDF.

Data is primarily reported by fiscal year (Darden’s fiscal year runs from June 1-May 31) though in some cases it is reported by calendar year. We have included time-series data where possible. notes on data methodologies and assumptions are included with the data charts. unless noted otherwise, performance data includes all of our wholly-owned operations. Data in this report (other than financial data prepared for the annual report) has not been subject to external, third-party assurance. However, our energy, greenhouse gas emissions and water data was compiled by a third-party auditing firm for this report and filed with the Carbon Disclosure Project (go to www.carbondisclosureproject.org for our history of filings).

We used the Global reporting initiative (G3) Guidelines to help shape the content of the report, and are self-declaring the report to be at a “C” application level. Where Darden’s strategy or management approaches have not changed since publication of our previous Sustainability report – or where relevant information is reported elsewhere on Darden’s website or other communications materials – we direct readers to that information (via the Gri index), rather than repeat it in this report.

Going forward, Darden intends to maintain a two-year sustainability reporting cycle. We also plan to provide more regular and real-time updates about our sustainability activities and performance via our updated sustainability website, www.darden.com/sustainability. We have specifically designed this update to adapt to the newest tablet and smart phone technologies so more of our stakeholders can access the most relevant information when and where they want to.

We welcome your feedback on this report. please send comments or questions to [email protected].

http://www.darden.com/sustainability/downloads/cdp-2012-investor-cdp-2012-information-request.pd

http://www.darden.com/sustainability

mailto:sustainability%40darden.com?subject=


Across our operations, Darden touches peoples’ lives in myriad ways – from the 180,000 people we directly employ and the many thousands more who work for our supplier companies, to the 1 million guest experiences we provide each day, to the individuals served by the community organizations we support. effective management that ensures we are financially successful is the foundation for our company, but in the process we want to create broader social and economic value as well. Our objective is to contribute to the success and well-being of our stakeholders, and we do so in a variety of ways. We support and develop our employees by giving them competitive pay and benefits, opportunities to expand their skills and experience and room to advance. in Fy2012, we were named to FOrtune’S “100 best Companies to Work For” list for the second year in a row – the first full-service restaurant company to be on the list. We also work to help strengthen the fabric of the communities in which we operate through our volunteer and philanthropic support of hunger relief, education, environmental and other organizations. in addition, we partner with a broad range of organizations to drive large-scale change and multiply our social impacts.

People


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key ACCoMPliShMenTS• In FY2011, Darden was the first full service

restaurant company named to FoRtUne’S “100 Best companies to Work For” list. that success was repeated in FY2012 and in addition, FoRtUne also recognized Darden as a “Diversity champion,” ranking it among the top 20 employers on the list for diverse workforces.

• Darden’s FY2012 “one Voice” employee engagement survey found that 81 percent of employees said Darden is a great place to work and 79 percent said they would strongly recommend the company to family and friends.

• Darden’s employee turnover rate decreased in FY2011 keeping it 20 to 25 percent lower than that of our competitors. over 50 percent of our restaurant managers are internally promoted from hourly positions and nearly 100 percent of our

general managers and managing partners are promoted from our restaurant manager ranks.

• Darden has been recognized numerous times for our diversity and employee programs by Human Rights campaign, Black enterprise magazine, latIna Style magazine, Hispanic Business magazine, Women executive leadership, and many others. Details at www.darden.com/commitment/diversity.asp.

4 SoAR Award for providing opportunity, advancement and recognition for female leaders – Women’s Foodservice Forum

4 Top 25 Companies for Supplier Diversity – Hispanic Business Magazine

4 Top 60 Companies for hispanics – Hispanic Business

4 Top 50 employers in the united States for hispanic Women – Latina Style

4 Top 50 Companies for Diversity – DiversityInc

4 40 Best Companies for Diversity – Black Enterprise

4 90 out of 100 on the human Rights Campaign 2012 Corporate equality index

4 Top 500 Greenest Companies – Newsweek Magazine

4 100 Best Corporate Citizens 2012 – Corporate Responsibility Magazine

4 84 out of 100 in the 2011 Carbon Disclosure Project

Recognitions:

http://www.darden.com/commitment/diversity.asp


ouR APPRoACh

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With 180,000 employees, Darden is one of the 30 largest private employers in the United States. We recognize that it is our valued employees who are the single most important contributor to our overall success. they are on the front lines, preparing and serving more than 400 million meals a year; making the difference between a good guest experience and a great one.

We understand that in order to encourage superior performance from our employees, we must create and maintain a compelling place to work – a place where people can grow and learn enduring life skills. our goal is to make working at Darden more than just a job, but a place where people can realize their personal and professional dreams.

Developing our people is a cornerstone of our business model. We are constantly striving to foster a team of exceptional leaders at all levels of our

company, so we can create a positive workplace for all of our employees. our company’s vibrant culture impacts everything we do, from how we treat our employees and what we value, to how we recognize and reward a job well done.

at the core of this approach are four simple but meaningful statements that we share with our employees:

What you do matters.Who you are matters.What you learn matters.Who you’re with matters.

We believe our strong corporate values and culture help our employees learn, thrive and grow and we work to fulfill this pledge in a variety of ways.

Employee Statistics

Hourly Workforce

Total Darden Workforce

Salary Workforce

95% 50% of Restaurant Managers Promoted from Hourly Positions

Minorities in the Workplace

43% Among OperationsManagers, 27% are Minorities

5%Nearly 100% of General Managersand Managing Partners are from Restaurant Manager Ranks

Women in the Workplace

52% Among OperationsManagers, 39% are Women

180,000 Goal of opening 500 new restaurants, in 5 years resulting in 50,000 net new jobs

52%

43%

Employee Statistics

Hourly Workforce

Total Darden Workforce

Salary Workforce

95% 50% of Restaurant Managers Promoted from Hourly Positions

Minorities in the Workplace

43% Among OperationsManagers, 27% are Minorities

5%Nearly 100% of General Managersand Managing Partners are from Restaurant Manager Ranks

Women in the Workplace

52% Among OperationsManagers, 39% are Women

180,000 Goal of opening 500 new restaurants, in 5 years resulting in 50,000 net new jobs

52%

43%

employee Statistics


SURVEYS: Inviting employees to participate in surveys

has been invaluable to the continued development of

our strong culture. last year, over 122,000 employees

(68 percent) participated in Darden’s “one Voice”

engagement survey to share input on issues

important to them. Specific surveys such as the

total Rewards optimization Survey administered

in FY2011 provide a better sense of employee

preferences relative to benefit programs and

incentives. attention to these surveys has proven

successful as Darden’s overall “engagement index”

– the connection employees feel toward the

organization and their jobs – was 80 percent in

FY2011, continuing to outpace both restaurant

industry and north american corporate norms. It is

also competitive to “high performing” companies.

BENEFITS: currently, all Darden employees have access

to healthcare benefits on their first day of employment,

a rarity in our industry. We provide competitive pay

with additional compensation and benefits designed

so that employees can share in the company’s success.

For example, we provide a higher 401(k) savings match

when Darden meets or exceeds its financial targets.

employees over the age of 21 are eligible to enroll in the

401(k) at date of hire and are eligible for the match once

they have one year of service and 1,000 hours. We also

offer any employee with one year of service averaging

greater than 20 hours per week a 15 percent discount on

Darden stock.

In FY2011 we began offering the option to be paid

via “pay card,” a pre-loaded debit card, on which the

balance can be increased electronically; a feature

now used by more than 80,000 employees. through

the pay card, direct deposit, and e-pay, Darden has

reduced the number of checks printed and mailed

by almost 7.8 million annually – saving money and

reducing our impact on the environment.

In FY2009, Darden set up the Darden employees

credit Union (DcU), a not-for-profit financial

cooperative for Darden employees and their family

members. as members of the DcU, employees receive

preferable savings and borrowing rates, among other

benefits. the DcU also provides employees who have

not previously had access to the banking system the

opportunity to become members.

Darden administers the Darden Dimes program, a

unique, employee-funded assistance program that

allows employees to provide financial assistance

to their coworkers in emergency and catastrophic

situations. Since 1999, the program has provided

more than $11 million in grant assistance to more

than 28,457 coworkers. Funded by Darden employees

through weekly payroll contributions, more than 53

percent of our employees participate by contributing

an average of 50 cents per week. In FY2011, employee

contributions totaled $1.7 million with 3,481 grants

issued for emergency assistance totaling $1,551,618.

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key iniTiATiveS

Darden Dimes

$1.7 million

In FY2011 53% of our employees contributed an average of 50 cents per week totaling:

$1.5 million3,481 emergency assistance grants were issued in FY2011 totaling:


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We provide competitive pay based on employees’ specific roles, and compensation and benefits are designed so that employees can share in the company’s success.

Spent by Darden in 2011 forEmployee Training & Development

$130,000,000

Darden Employee TrainingDarden employee Training

TRAINING: Darden provides a broad range of

training and development opportunities for

employees at all levels. For example, each hourly

worker in our restaurants receives an average of 35

hours of training to get him or her started, while

restaurant managers spend a minimum of 500

hours as “managers in training” their first year. In

FY2010, we expanded our best-in-class “Diversity

learning experience” program, which is an intense,

multi-day training session originally geared toward

senior managers and directors, to include all of our

restaurant managers. By the end of FY2011, more

than 11,000 restaurant managers had attended the

newly-expanded program which includes operations

mentoring to strengthen our diverse leadership

pipeline. We also have a number of programs aimed

at leadership development, such as our leadership

assessment and Development at Darden Restaurants

(laDDR) program and Darden University. over 50

percent of our restaurant managers are internally

promoted from hourly positions. nearly 100 percent

of our general managers and managing partners are

promoted from our restaurant manager ranks.

NETWORkS: While Darden has had a long-standing

commitment to workforce diversity, in FY2010

we established a formal culture and Inclusion

department. Darden’s vision is to maintain strong

committed networks engaged in supporting our

business objectives and providing members with

the opportunity to learn, grow and network, as well

as enhance their leadership skills. through informal

mentoring and structured events, the networks

provide members with a host of valuable resources

and opportunities to gain and adopt valuable life skills.

at the Restaurant Support center, networks include

the african-american network, the asian-american

network, the Family network, the Hispanic network,

the Pride alliance and the Women’s network and we

are currently piloting the expansion of these networks

into our restaurants. Darden’s efforts to promote and

support workforce diversity are reflected in the fact

that approximately 43 percent of our employees

are minorities and 52 percent are women. among

restaurant managers, 27 percent are minorities and

39 percent are women. Both percentages rank above

average in our industry.


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• In FY2011, Darden’s sales from continuing operations were $7.50 billion, a 5.4 percent increase from FY2010. this compares to a 1.5 percent increase in total sales growth for the year for the Knapp-tracktm benchmark for full-service restaurant chains. For more information on Darden’s financial performance, visit www.investor.darden.com/financials.cfm

• Darden opened nearly 100 new restaurants in FY2012, bringing the total number of restaurants to 1,993 by the end of the fiscal year. Darden estimates opening 80 to 100 new restaurants each year from FY2013 to FY2016, adding almost 50,000 net new jobs over that time.

• Between FY2008 and FY2011, Darden realized $18 million in costs savings as a result of investments to improve energy efficiency, eliminate waste and reduce water use.

key ACCoMPliShMenTS

Restaurant Growth

ouR APPRoAChAt Darden, we view the economics of sustainability as having two distinct, but interrelated, parts: the first is Darden’s own financial sustainability and the second is our broader economic impact.

effectively managing our company and ensuring we are financially successful is a precursor to achieving our sustainability aspirations. But that’s not to say that sustainability is an after-thought; on the contrary, sustainability is a core pillar of our overall corporate strategy because we are firmly convinced that managing our business in a way that is aligned with our core values and conserves natural resources contributes to our long-term financial success.

In some cases, we can directly quantify the financial impacts of our sustainability efforts. For example, between FY2008 and FY2011, Darden realized $18 million in costs savings as a result of our sustainability investments and we estimate that between FY2012 and FY2016, we will save an additional $10 - $12

million in costs. In other cases, the bottom-line benefits are less tangible but we are certain they are there. For example, it is difficult to quantify how our commitment to sustainability contributes to our ability to attract and retain employees or greater license to operate in local communities.

Darden’s ongoing financial success also enables us to continue to provide economic benefits to a broad range of stakeholders, such as through the wages and benefits we provide our employees, the goods and services we buy from our suppliers, the taxes we pay to local governments and the contributions we make to community organizations. However, one of our key challenges going forward will be determining how best to balance the potential trade-offs between investments in sustainability and our corporate growth objectives. therefore, we will always focus on making a clear case for the financial return on the investment in our sustainability efforts.

http://www.investor.darden.com/financials.cfm


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CApITAL INVESTmENTS: When Darden opens a new restaurant – which we did almost 100 times in FY2012 – we are making a 30-year investment in a community. each of our restaurants requires an approximately $3.5 million capital investment to build and supports approximately 200 construction jobs.

CREATING JOBS: once a new restaurant is operational, it sustains an average of 100 permanent jobs. Darden expects to add over 500 more restaurants by FY2016 placing us on course to hire more than 50,000 new employees (net of turnover).

Jobs at Darden are an opportunity for employees to excel. the average hourly wage for a server is approximately twice the national minimum wage of $7.25, while the average hourly wage for a busser,

an entry-level job, is more than $4 higher than the national minimum wage.

COmmUNITY & BEYOND: Darden pays property and sales taxes on fixed assets to local governments totaling $97 million in FY2010 and $107 million in FY2011. In addition, Darden spent more than $3 billion on products from 2,000 suppliers in 35 different countries; nearly 10 percent of which were from minority- and women-owned suppliers.

through the Darden Restaurants Foundation, we contribute approximately $6 million per year to nonprofit organizations in the communities where we operate (see People - community Investments).

key iniTiATiveS

Restaurant Growth

100 Permanent Jobs

200 Construction Jobs

$3.5 Million in Capital Investments

$1.75 Billion in Capital Investments

100,000Construction Jobs

50,000Permanent Jobs

OneRestaurant Opening

X 500 openings by FY2016 =

Economic Impact

100 Permanent Jobs








Economic Impact

100 Permanent Jobs








Economic Impacteconomic impact


The common theme that cuts across all of Darden’s sustainability efforts – from working to promote sustainable fisheries to enhancing the nutritional content of our menu offerings to addressing the environmental impacts of our supply chain – is collaboration. meaningfully addressing sustainability means identifying and working to reach systemic solutions – not just seeking individual benefit. that doesn’t mean Darden loses sight of what’s in the best interest of our company. on the contrary, we believe that working collaboratively and with a genuine commitment to finding shared solutions helps Darden earn the trust of our stakeholders – and a seat at the table to help shape responses to the issues that affect our company. It allows us to share our experience and perspective – and to learn from the experience and perspective of others.

this collaborative philosophy guides all of Darden’s stakeholder relations from how we work with our suppliers to help them improve their sustainability practices to how we engage with policy makers and non-governmental organizations on issues of importance to them and our company. our approach

is to identify where there is a need and where Darden can play a meaningful role leveraging our size and scale or expertise.

While collaboration is essential in addressing sustainability it is not an all-encompassing solution. Diverse groups of stakeholders won’t always agree on the best path forward and it’s not always possible to find ‘win-win’ solutions. For Darden, we are committed to continuing to participate in and help lead collaborative efforts to address the pressing sustainability challenges facing our company and more broadly, our world.

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key ACCoMPliShMenTS• In FY2012, Darden announced a formal alliance

with the Partnership for a Healthier america. Darden made the most comprehensive health and wellness commitments of a restaurant company to-date, pledging to reduce our overall calorie and sodium footprint by 10 percent by 2016 and by 20 percent by 2021, and to enhance the nutrition credentials of our children’s menus (see Health & Wellness section for more information).

• Darden announced a three-year commitment to rebuild troubled fisheries through targeted Fishery Improvement Projects (FIPs) in FY2012. the commitment is part of Darden’s membership in the clinton Global Initiative (cGI). the initial FIP was launched in the U.S. Gulf of mexico, in conjunction

with Publix Super markets and Sustainable Fisheries Partnership. It includes commitments to combat illegal fishing, enhance productivity and reduce negative ecological impacts (see Seafood Stewardship section).

• In FY2012, Darden’s Restaurant Support center began drawing 15 to 20 percent of its annual power usage from solar panels mounted on the parking garage and portions of the roof. this initiative, in partnership with Progress energy, demonstrates the power of collaboration to reduce environmental impacts and take advantage of an abundant renewable resource in Florida – the sun.

ouR APPRoACh

Meaningfully addressing sustainability means identifying and working to reach systemic solutions...


Explore issues embedded in Food, Beverage and Agriculture

Align Darden’s purchase of seafood with the best ocean science

Commit to reduce sodium and calorie content of meals

Launch three Fishery Improvement Projects in the next 3 years

• Partnership for a Healthier America

• Clinton Global Initiative • Publix• Sustainable Fisheries Partnership

• New England Aquarium• Global Aquaculture Alliance• National Fisheries Institute• Lobster Sustainability Foundation

Strategic Partnerships

Provide valuable food donations across the U.S.

Applied for or received LEED Silver certification at 13 restaurants and received LEED Gold at the RSC

Integrate environmental and social impacts into Supply Chain considerations

Generate 1.9 MWh of solar energy annually at the Restaurant Support Center

Reduce food waste through collaborative effort

• Food Donation Connection• Feeding America

• College Summit• Boys & Girls Club• UNCF• Hispanic College Fund• The Point Foundation• APIASF• AAPD

• Progress Energy

• Grocery Manufacturers Association• Food Marketing Institute• National Restaurant Association

• Business for Social Responsibility

• Conservation International’s Business & Sustainability Council• The Sustainability Consortium

• US Green Building Council

Provide youth access to postsecondary education

Sample of StrategicPartnerships

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key iniTiATiveSSUppLY CHAIN: Darden has partnered with the new england aquarium for over a decade to provide up-to-date environmental, conservation and scientific data regarding wild-capture fish and aquaculture species for our Seafood Sustainability Dashboard (see Seafood Stewardship). the aquarium also provides on-going consultation on a host of seafood related issues and has been a trusted advisor to our Supply chain, total Quality and Sustainability groups.

Darden is a member of a wide range of industry associations that address various aspects of supply chain sustainability, such as national council of chain Restaurants, Food Safety leadership council, International association for Food Protection, and the national environmental Health association.

SUSTAINABILITY LEADERSHIp: Darden is a founding member of the Sustainability consortium, currently serving as a member of the Steering committee and Retail Sector lead. the Sustainability consortium is a multi-stakeholder collaboration bringing together

companies, academics, nGos and government agencies, whose vision is “to advance science to drive a new generation of innovative products and supply networks that address environmental, social, and economic imperatives.”

Darden is also a participant in a host of corporate social responsibility forums designed to accelerate our sustainability leadership. organizations include the corporate eco-Forum, Business for Social Responsibility, and conservation International’s Business & Sustainability council.

FOOD WASTE: In FY2011, Darden joined the Food Waste coalition, an initiative launched by the Grocery manufacturers association, the Food marketing Institute and the national Restaurant association aimed at reducing food waste. through membership in this group, Darden has brokered relationships with a variety of non-profit organizations, companies and waste management providers to advance our “zero waste to landfill” goal.


Darden has restaurants in hundreds of communities across the United States and Canada, and our objective is to have an enduring and positive impact in those communities through volunteer involvement and philanthropic support. We view this as a fundamental extension of our core values and commitment to being a responsible corporate citizen.

Darden Restaurants is recognized for a culture that rewards caring for and responding to people. that defines service for Darden. these values were inspired by Darden’s founder, Bill Darden. the Darden Foundation works to bring to life this spirit of service through its philanthropic support of charitable organizations across the country as well as the volunteer involvement of Darden Restaurants’

employees. With 1,900 restaurants, Darden strives to have an enduring and positive influence on the communities it serves.

Darden focuses our philanthropic efforts on access to postsecondary education, preservation of natural resources and good neighbor grants. We support organizations that:• Positively impact the educational prospects of

underserved youth, ages 14 to 18, by providing them with access to the tools and information necessary to navigate the process of postsecondary education.

• Protect wildlife, restore and preserve ecosystems and teach environmental sustainability.

• Promote education, arts and social service organizations in central Florida.

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key ACCoMPliShMenTS• through the Darden Restaurants, Inc. Foundation,

we awarded approximately $6 million in both FY2010 and FY2011 to charitable organizations across the United States and canada focused on access to postsecondary education, preservation of natural resources and good neighbor grants.

• In FY2011, Darden donated over 10 million pounds of food through the Darden Harvest program. In FY2012, Darden officially surpassed 56 million pounds of food donated since the program began in 2004.

• Darden Foundation awarded more than $1.7 million to nearly 900 non-profit organizations as part of its inaugural Darden Restaurants community Grants program. every restaurant within the Darden family (across the U.S. and canada) had the opportunity to help award a $1,000 grant to a nonprofit organization in their community.

• Darden Foundation supported the national Recreation and Parks association to establish the Great american trails program to assist in refurbishing and updating trails across the country.

ouR APPRoACh

Darden foundation Contributions

FY2010 & FY2011 $6 Million per year in these core focus areas: • Postsecondary Education• Preservation of Natural Resources• Good Neighbor Grants

Darden FoundationContributions

FY10 & FY11

Since 1995, the Darden Foundation has awarded more than $60 Million in grants.

FY2012 Total Giving

$7.8 Million25% distributed through theRestaurant Community Grants program

$60 MILLIONFY2010 & FY2011 $6 Million per year in these core focus areas: • Postsecondary Education• Preservation of Natural Resources• Good Neighbor Grants


FY10 & FY11


FY2012 Total Giving


$60 MILLION

Since 1995, the Darden foundation has awarded more than $60 Million in grants

FY2010 & FY2011 $6 Million per year in these core focus areas: • Postsecondary Education• Preservation of Natural Resources• Good Neighbor Grants


FY10 & FY11


FY2012 Total Giving


$60 MILLION


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In FY2011, the Darden Restaurants Foundation supported a broad range of organizations. A few examples include:

Access to Postsecondary Education

• Boys & Girls clubs of america

• college Summit

• Hispanic Scholarship Fund

• United negro college Fund

• ProStart (national Restaurant association program)

Preservation of Natural Resources

• new england aquarium

• everglades Foundation

• audubon of Florida

Good Neighbor Grants

• american Red cross

• Second Harvest Food Bank

• Heart of Florida United Way

• United arts

• Darden has partnered with Habitat for Humanity since 2010, providing donations from over 300 restaurant remodels with total fair market value in excess of $1.6 million

For more information about these programs, see the Darden Foundation 2011 community Service report at www.dardenfoundation.com

key iniTiATiveS

College Summit works in partnership with schools and colleges to developa sustainable model for raising college enrollment rates community-wide.

Darden’s support of College Summit enables the organization to train. . .

101 Peer LeadershipWorkshops

9,800 Students

54,250 High School Seniorsas Peer Leaders

in 12 states and Washington D.C.

supporting

in the college application process

Darden’s Recipe For Success™Darden’s Recipe for Success™

http://www.dardenfoundation.com


Natural resources are fundamental for our business, from the energy we use to operate our restaurants to the water we use to cook and clean. In addition, the basic ingredients for the meals we serve depend on healthy marine and agricultural ecosystems. ensuring those resources are conserved and preserved is not only critical for our company, but also good for the larger world in which we operate. in 2009, we established our “15x15 over Zero” goals to reduce per-restaurant energy and water use by 15 percent by 2015, and one day send zero waste to landfill. to get there, we launched an aggressive effort to increase the energy and water efficiency of our restaurants – from retrofitting lighting with more energy efficient bulbs, to installing low-flow faucets, to changing thermostat setting and equipment power-up schedules, to developing ‘green building’ prototypes for all new restaurants. and the efforts are paying off: since Fy2008, we have reduced per restaurant energy use by nearly 8 percent and per restaurant water use by nearly 17 percent – exceeding our water goal ahead of schedule. We have also expanded our recycling capacity and increased our landfill diversion rate by 14 percent. We are proud of our progress, but we know we have more work to do to use resources even more wisely in our operations – and to help find solutions to larger environmental challenges.

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• completed development of new restaurant prototypes for olive Garden, Red lobster, longHorn Steakhouse and Bahama Breeze, all aligned with the leadership in energy and environmental Design (leeD) certification standard, a certification system run by the U.S. Green Building council.

• We kicked off major remodeling efforts across our existing olive Garden, Red lobster and longHorn Steakhouse restaurants to incorporate sustainable design best practices and we are working to source materials locally whenever possible. Updates include features such as 100 percent recycled carpeting, sustainably harvested wood, more energy efficient lighting, “smarter” energy management systems, low-flow water nozzles and faucets, and less water-intensive landscaping.

• By the end of FY2012, 12 restaurants across Darden’s three largest brands (olive Garden, Red lobster, longHorn Steakhouse) had either received or were in pursuit of leeD “Silver” certification. Since our leeD “Gold” certified Restaurant Support center opened in FY2010, we have exceeded the 16% energy efficiency improvement required by aSHRae (american Society of Heating, Refrigerating and air conditioning engineers), exceeding the leeD certification requirement. We are using 31 percent less energy per square foot compared to our former corporate headquarters.

key ACCoMPliShMenTS

With over 1,900 restaurants, Darden’s physical footprint is one of the most significant ways we impact the environment. Incorporating environmental considerations into how we design, construct, and remodel our restaurants is one of the central ways Darden is putting our commitment to sustainability into practice. It’s also a key tool for enhancing the operational efficiency of our restaurants – and an essential part of our strategy for achieving our “15x15 over Zero” goals of reducing energy and water use by 15 percent by 2015, and of one day sending zero waste to landfill.

all new restaurants that we build will use our leeD standards prototype design to ensure that they operate using less energy, meet stringent water

conservation standards and use recycled materials in their construction. existing restaurants that are remodeled are done so by recycling and donating what is removed and replacing it with sustainably sound materials. For example furnishings and materials from 85 of the remodeled restaurants were donated to Habitat for Humanity. In addition to restaurant design, we are working to harness the enthusiasm of restaurant employees through our Green teams. Green teams are responsible for implementing programs aimed at reducing waste, energy and water usage, as well as identifying new ways to improve the sustainability performance of our restaurants.

ouR APPRoACh

The LEED “Gold” certified RSC facility has met and exceeded our original expectations for energy efficiency, water efficiency, indoor air quality standards and several other key LEED building design features.


leeD Prototype Restaurant

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LEED: We expect to build an average of 80 – 100 new restaurants per year by 2016 using our leeD-aligned restaurant prototypes.

GREEN TEAmS: employee Green teams continue to be empowered to take actions that reduce energy, water and waste in restaurants.

SEAFOOD: We are conducting an analysis of the environmental profile of the 11 eddie V’s Prime Seafood and Wildfish Seafood Grille restaurants acquired by Darden in 2011 to identify opportunities to implement sustainable design features.

key iniTiATiveSGreen Team Member Profile

General Manager/Managing Partner

Heart of the House/Back of House/Kitchen

Front of the House/ServiceHost/Bartender

Manager

Director

in fy2012, almost 12,000 team members expressed commitment to our sustainability efforts.


Darden is taking aggressive action to reduce our direct energy use and, by the end of FY2011, we were more than halfway toward our goal to reduce our per restaurant energy use by 15 percent by 2015 using 2008 as a baseline. Increasing the energy efficiency of our operations has dual drivers and dual benefits. energy is an expensive resource, so using it more efficiently reduces our costs and helps insulate us from volatile energy prices.

additionally, when we reduce our energy use, we also reduce our GHGs which helps us be a part of the effort to address climate change. In addition to Darden’s direct energy use and GHG impacts, we know that the food and other products we source use energy and emit GHGs when they are produced and transported. We are working to better understand and measure these indirect impacts in our supply chain.

Darden’s comprehensive energy efficiency efforts are integrated into our operations in a variety of ways, from how we design and build new restaurants and distribution facilities; to how we manage our logistics and distribution system; to the processes we use to set

thermostats and turn on and off cooking equipment in our restaurants; to the type of light bulbs, appliances and other machinery we use.

moving forward, energy savings will require more complex technology, higher capital investments and site specific solutions to address more regional challenges such as weather. However we remain committed and confident that we will reach our goal.

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key ACCoMPliShMenTS• Since FY2008, we have reduced our per restaurant

energy use by 7.9 percent, moving us closer to our goal to reduce per restaurant energy use by 15 percent by 2015. We achieved consistent reductions in average Greenhouse Gas (GHG) emissions, from 608 metric tons (mt) equivalent carbon Dioxide (co2e) per restaurant in FY2008 to 568 mt c02e in 2011. Darden scored 84 out of 100 in the 2011 carbon Disclosure Project, earning us the highest disclosure rating within our sector. We also earned 49 out of 100 in the 2012 climate counts rating, up from 0 in 2008.

• operation of a 1.1 megawatt solar energy installation on the rooftop of our Restaurant Support center (RSc), launched in FY2012, which is expected to supply 18 percent of our RSc’s annual energy needs. In 2012, we plan to expand the capacity of the installation to provide an additional 40,000 watts.

• launched major initiative to use or convert all “front of house” lighting to leD bulbs, with the estimated energy savings of approximately 40,000 kilowatt-hours (KWh) per year. approximately 25 percent of our restaurants had the new leD lighting system installed by the end of FY2012, with the remainder scheduled for replacement by FY2014. For some of our older restaurants, the wiring is not compatible with leDs, so making the change necessitates updating the entire electrical system.

• completed conversion of kitchen area lighting from incandescent to compact florescent bulbs, resulting in energy savings of approximately 3,000 KWh per year per restaurant.

ouR APPRoACh

C02-e Emissions by Source

Natural Gas = 29.04%LPG/Liquid PropaneNatural Gas

Electricity = 67.81%

Refrigerants = 1.84%HFC-134a (R-134A)R-404A

Transportation = 1.31%Long-HaulMotor Gas/DieselJet FuelMedium-HaulShort-Haul

FY

201

1

C02-e emissions by Source


energy use

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key iniTiATiveSEFFICIENT SYSTEmS: Darden is piloting energy management Systems at ten restaurants and gaining information on how to retrofit our approximately 1,200 older restaurants to be “smarter,” more energy efficient buildings in the future.

We are installing the most energy efficient appliances (often energy Star rated) in our kitchens and the highest seasonal energy efficiency ratio (SeeR)-rated heating, ventilation and air conditioning rooftop equipment in new construction, remodels and through the normal replacement cycle.

RESpONSIBLE USE: We will continue using more energy efficient thermostat settings and equipment “power-up” schedules to ensure cooking equipment – the biggest consumer of energy in a restaurant – is not turned on any earlier, or left on any longer than necessary.

We will continue implementing Darden Direct, our best-in-class food distribution system, to reduce

energy use in our distribution system by more efficiently routing our trucks, increasing our use of rail shipments and dictating that the distribution centers we lease integrate a wide variety of energy efficiency features. When it is fully implemented at the end of FY2012, Darden Direct will save nearly 39 million miles of driving per year (see Supply chain section).

VITAL CONTRIBUTIONS: Green teams, which are groups of employees in each of our restaurants that implement programs aimed at reducing waste and energy and water usage, will continue to identify new ways to improve the sustainability performance of our restaurants.

We integrated of a wide range of energy efficiency features in new restaurant prototypes, aligned with leeD certification standards (meaning they must be at least 16 percent more energy efficient than the equivalent non-leeD certified building).

OliveGarden

2,14

4 2,

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2,03

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1,64

21,

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1,54

91,

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RedLobster

-8.3%

1,16

61,

120

1,08

51,

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LongHornSteakhouse

-9.1%

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92,

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2,36

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BahamaBreeze

-13.6%

1,78

51,

653

1,53

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CapitalGrille

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1,39

81,

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1,39

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Seasons52

-7.3%

3,011,5022,977,133 3,039,075

Energy Efficiency

FY2009FY2008 FY2010 FY2011

Ave

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*From FY08 – FY11 there was an increase of almost 200 Restaurants

3,016,668

Ave

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Use

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h)

All Restaurants -7.9%

1765 1722 1664 1627

2.1% increase*


• Darden reduced its aggregate per restaurant water usage by 16.9 percent between FY08-FY11, exceeding our goal to reduce our per restaurant water usage by 15 percent by 2015. as a result of water-saving initiatives, we reduced and avoided using more than 1 billion gallons of water despite opening more than 200 additional restaurants.

• completed installation of low-flow pre-rinse

sprayers and hand-washing sink aerators in our 1,900+ restaurants saving approximately 400,000 gallons of water per restaurant per year.

• Removed “dipper wells” (utensil holders through which water continuously runs) at most olive Garden restaurants.

• completed conversion of most pasta cookers at olive Garden restaurants to low flow and more energy efficient.

• Saved almost 40 million gallons of water at our

Restaurant Support center (RSc) since it opened in September 2009, mostly due to the use of reclaimed water for the toilets and irrigation system at the RSc.

• We changed our process for preparing shrimp to make it less water-intensive. In all these efforts, we have maintained our unwavering focus on food safety to ensure any new processes meet our strict standards.

key ACCoMPliShMenTS

Darden uses water directly in our operations, primarily in our kitchens for preparing and cooking food, hand washing and cleaning, as well as in restaurant restrooms and for landscape irrigation. We also use water indirectly through our purchasing of a wide variety of foods that require inputs of water to produce and process. We recognize water is a critical and strained resource, which is why we have been working diligently to understand and reduce our direct and indirect water usage.

In FY2009, we set a corporate-wide goal to reduce our direct water usage by 15 percent per restaurant by 2015 using FY2008 as the baseline. By the end of FY2011, we had already exceeded our goal, having reduced on aggregate our per restaurant water use by approximately 17 percent.

We have been able to achieve such dramatic progress by taking a variety of steps – some seemingly small, others more significant and most invisible to our guests. and many in partnership with our employee Green teams, which are groups of employees in each of our restaurants that implement programs aimed at reducing waste and energy and water usage, as well

as identifying new ways to improve the sustainability performance of our restaurants. collectively this has had a huge impact.

For example, in our olive Garden restaurants, we are testing even lower-flow washers. most of our olive Garden restaurants have also now implemented a “dipper well” alternative that significantly reduces the amount of water needed to keep the utensils we use to prepare food clean and safe, and in FY2012 we started rolling out a similar effort in our Red lobster and longHorn Steakhouse restaurants. at the end of FY2011, we finished converting most of the pasta cookers at our olive Garden restaurants to low flow.

We are pleased to report our progress, but also recognize that the water “footprint” of our supply chain is significantly larger than our own direct use. We are working through a variety of forums, in particular the Sustainability consortium, a multi-stakeholder effort working to quantify the sustainability of products.

ouR APPRoACh

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OliveGarden

4,09

13,

922

3,59

43,

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3,41

43,

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2,85

92,

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RedLobster

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71,

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1,38

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LongHornSteakhouse

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4,02

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BahamaBreeze

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2,48

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CapitalGrille

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2,93

62,

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2,49

52,

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Seasons52

-22.0%

5,238,8015,192,166

4,837,3674,695,337

5,616,1465,552,844

5,190,4855,180,505

Water Withdrawal and Discharge

FY2009FY2008 FY2010 FY2011

Ave

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Wat

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Ave

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All

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All

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*From FY08 – FY11 there was an increase of about 200 Restaurants

3,342 3,180 2,879 2,775

Total Water Withdrawal (kgal)

Total Water Discharge (kgal)

-10.4%*-7.8%*

Water Withdrawal and Discharge

key iniTiATiveSRESpONSIBLE USE: While reduced water usage per restaurant is significantly ahead of schedule, Darden will continue to identify opportunities to reduce water and consider establishing additional goals in FY2013.

We are also exploring a range of other advanced technology equipment options, such as even lower-flow pre-rinse sprayers and new dishwashers, ice makers and restroom faucets, all designed to reduce water and, in many cases, energy use. We will continue the use of drip irrigation and more indigenous and drought-resistant plant species for landscaping at all new restaurants.

NEW pROCESSES: Green teams will begin implementing an enterprise-wide, 30-point leak inspection process at restaurants and we will initiate pilots to phase-out “dipper wells” at Red lobster and

longHorn Steakhouse, a process which has been very successful at our olive Garden locations.

We are launching the cleaning chemical Usage Improvement initiative in our olive Garden restaurants, designed to educate employees about the proper use of “the right cleaning chemicals, in the right way, using the right amount.” In addition to reducing Darden’s cleaning supply usage, the initiative will reduce water usage by minimizing or eliminating the need for re-washing.

Darden is also changing the process for cleaning ice bins in restaurants so that ice is removed (rather than melted with hot water) prior to cleaning – a change we estimate will save approximately 4 million gallons of water a year.


• Increased our enterprise-wide landfill diversion rate by 14 percent to 28 percent between FY2008 and FY2011, representing a total volume of more than 140,000 cubic yards of waste that was diverted from landfills and recycled in FY2011.

• Darden’s recycling efforts during the course of the year saved approximately 930,000 trees and 275,000 cubic yards of landfill space. they also saved 500 million gallons of water and over 300 million kilowatt-hours (KWh) of electricity, resulting in 240,000 metric tons (mt) of Greenhouse Gas (GHG) being avoided.

• In FY2012, we conducted detailed waste audits at restaurants representing our three largest brands to better understand our waste streams.

• eliminated the use of all polystyrene take-out containers and increased the recycled content and recyclability of our take-out packaging. take-out bags are paper or biodegradable plastic, and cups have changed to paper.

• achieved 100 percent recycling rate for discarded fry oil – a total of 20 million gallons in FY2011 – and used for biodiesel, animal food and as an ingredient in soaps.

• Donated nearly 10 million pounds of food in FY2011 through our Darden Harvest program, which distributes high quality, prepared foods to hunger relief organizations. In FY2012, Darden officially surpassed 56 million pounds of food donated since the program began in 2004.

key ACCoMPliShMenTS

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ouR APPRoAChIn 2009, Darden set an ambitious goal to one day send zero waste to landfill. Since that time, we have taken a number of steps to help move our company down that path.

one key step was to conduct detailed waste audits at restaurants representing each of our three largest brands to more thoroughly understand the nature of our waste. We found 13 different waste streams ranging from discarded food to cardboard to plastic straws and that 90 to 95 percent of that waste could, theoretically, be recycled or composted. However, in many of the locations, the infrastructure does not exist to recycle some or all of the materials in our waste stream.

least common of all is the availability of composting, a key issue for Darden since food waste is the largest single component of our waste stream, making up more than one-third of our total waste by weight. However, at the end of 2011, composting service was available in fewer than 5 percent of the markets where we operate. Indeed, the wide variability in the waste disposal and recycling services available across the

many locations where we operate is the key challenge in managing our waste. However, we will launch composting pilots and more recycling in FY2013.

We are making progress and are optimistic that this progress will accelerate as increasing disposal costs are creating new incentives for haulers to offer more recycling services. While over 50 percent of our restaurants have been able to recycle cardboard and paper for some time, in the past two years, we have more than tripled the number of Darden restaurants that are able to do single-stream recycling (can include glass, plastics and aluminum). as a result, more than 700 of our 1,900 restaurants are able to recycle these materials.

to help move the needle further and faster, we have developed a relationship with our third-party waste broker to advance our zero waste to landfill goal. to this end, we are planning to pilot composting programs in a select number of markets in 2012, with the goal of better understanding what the technical and behavioral challenges to composting are and how we can overcome them.


ImpROVED pROCESSES: Darden will continue the roll-out of our “right-sizing” initiative, which correlates waste stream to guest count, and enables restaurants to adapt the frequency of waste pick-ups and size of containers to meet their individual needs. to date, the result has been fewer pick-ups and a 15 percent reduction in waste removal costs.

a simple but effective update has been changing the process for printing daily reports at olive Garden to reduce redundancies and eliminate unnecessary hard copies. this has resulted in a reduction of approximately 12 million pages annually. the same process will be rolled out at Red lobster, longHorn Steakhouse and Bahama Breeze and is estimated to save an additional 16 million pages annually.

FOOD WASTE: the Darden Harvest food donation program, which donates food to hunger relief organizations in our communities, will continue to be a strong area of focus. We will also continue our commitment to the Food Waste coalition, an

initiative launched by the Grocery manufacturers association, the national Restaurant association and the Food marketing Institute aimed at reducing food waste.

key iniTiATiveS

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Recycled Cooking Oil

Since November 2010 Darden has recycled 7,312,446 pounds of

cooking oil

soapfeedbio

diesel

Recycled Cooking oil

24.5%28.0%

Darden

Landfill Diversion Rates

OliveGarden

RedLobster

27.1%24.7%

27.2%

20.6%26.2%

37.5%

33.9%

9.4%

32.7%28.6%

33.0%

23.1%

LongHornSteakhouse

BahamaBreeze

CapitalGrille

Seasons52

% W

aste

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andf

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113,957

Darden Recycling

Total Monthly Volume in Yards

Darden Waste

140,296350,919 359,709

FY2011FY2008

landfill Diversion Rates


As a restaurant company, we know that what’s ultimately most important to our guests is what we put on the plate. Our guests expect a delicious, high-quality meal – and we provide it. in doing so, we are aware that there are a host of sustainability issues ingrained in the foods we serve – from how our ingredients are produced, processed and transported, to how the meals are eventually prepared. For us, that means understanding and managing issues across our full supply chain – from “farm to fork” and “pond to plate.” this starts with our unwavering commitment to food safety. Our best-in-class total quality program ensures that every meal we serve meets our stringent safety and quality standards, includes our commitment to the highest animal welfare standards and drives our long-time focus on seafood stewardship. in addition, it includes our increasing focus on the nutritional content of our menus and helping our guests achieve their health and wellness goals. through all of this we are continually working to better understand the energy, carbon and water footprint of the foods we serve.

Plate


• In FY2012, Darden announced the most comprehensive health and wellness commitment in the restaurant industry to date. Working with the Partnership for a Healthier america (PHa), Darden is committing to reduce our overall calorie and sodium footprint of our core menu by 10 percent by 2016, and 20 by 2021 and to enhance the nutrition credentials of our children’s menus.

• Darden’s nutritional information is available upon request in all of our restaurants. Darden was also one of the first restaurant companies to provide guests with nutritional information online, in a mobile-enabled format. Darden has also supported national menu labeling legislation and has been active in the dialogue to develop the requirements.

• In FY2010, Darden joined healthydiningfinder.com, an online resource center that provides consumers with “dietitian-approved” menu options, to extend the online availability of our nutritional information.

• In FY2012, Darden’s longHorn Steakhouse restaurants launched “Flavorful under 500” menu items, which provide the option to order a complete steakhouse meal for less than 500 calories. this expands the suite of menu items Darden offers across our brands specifically designed to help guests meet their personal health and nutrition goals, such as our “Garden Fare” menu items at olive Garden and “lighthouse” items at Red lobster.

One of Darden’s core strengths is our ability to continually evolve to meet the consumer’s ever-changing needs. When it comes to health and wellness, we know our guests are increasingly interested in healthy eating. We believe that responding to this growing demand will help us strengthen our relationship with our current guests, while expanding our appeal to a broader base of future guests.

Darden’s approach to health and wellness is guided by three core principles:

TRANSpARENCY: We will ensure our guests have access to the information they want about the food on our menus in locations and formats that meet their needs and complement their experience.

CHOICE AND VARIETY: We will strive to provide options on all of our menus that address our guests’ individual taste preferences and dietary needs.

INNOVATION AND COLLABORATION: We will harness the creativity of our internal teams and external resources to identify new and different ways of supporting our guests’ individual health and wellness goals.

In addition to consumers’ desire to eat better, research shows an alarming increase in obesity rates in the United States, especially among children. While the causes and solutions to this broad societal challenge are many and varied, we believe the restaurant industry can play an important role by providing information and a range of menu options. Indeed, we see this as an essential component of achieving our core purpose to “nourish and delight everyone we serve.”

this isn’t a commitment we take lightly – at Darden, we hold ourselves accountable for doing what we say we will do, which is why we partnered

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ouR APPRoACh

Darden’s CommitmentPartnership for a Healthier America

Reducing overall calorie and sodium footprint by

-10%

-20%

10% over the next 5 years

20% over the next 10 years

http://www.healthydiningfinder.com


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ExISTING mENUS: over the last several years, we have gathered the nutrition information of our ingredients and analyzed the nutrient content of our menu items. We are continuing to refine and strengthen the information management infrastructure, processes and data we use to ensure we are disclosing complete and accurate information to our guests. We are developing work plans to identify where we have the opportunity to optimize existing menu items, offer alternate portion sizes and introduce new items to meet our commitment to reduce our overall calorie and sodium footprints.

NEW CHOICES: Darden will release new children’s menus by July 2012, offering at least one item that is equal to or less than 600 calories, 30 percent of total calories from fat, 10 percent of total calories from saturated fat, and 600 mg of sodium. Items that meet these criteria will be positioned first on the menu or clearly marked to aid parents in identifying options that are lowest in calories, fat and sodium. the default beverage will be 1 percent milk and the default side will be a fruit or vegetable. and any food illustrations on children’s menus will depict nutritious options and

Darden will also continue to refrain from advertising to children 12 years old and younger through any digital or television media.

We are continuing to leverage Darden’s Seasons 52 brand, where all items on the menu have fewer than 475 calories, as a health and wellness innovation laboratory. For example, in 2011, Darden’s olive Garden restaurants launched “dolcini,” which are mini-desserts modeled on the “mini indulgences” concept started at our Seasons 52 restaurants. the popularity of Seasons 52 restaurants continues to grow as 23 locations were opened by the end of FY2012.

as part of Darden’s continual efforts to respond to our guests’ evolving tastes, Darden conducts regular market research to better understand our guests’ health and wellness needs and identify how to best meet them.

key iniTiATiveS

with PHa, who prides themselves in ensuring that “commitments made are commitments kept.” So, as part of the commitment, Darden and PHa have worked together to develop a rigorous methodology to measure and report on our progress and PHa will monitor and verify our results.

We know that evolving the nutritional content of our menus while ensuring we continue to satisfy tastes and expectations will raise a number of challenges.

For example, our research shows that many guests dine out for a special occasion and deliberately seek out an indulgent meal. as a result, actual demand for healthy menu items often lags anticipated demand. there are also technical challenges to reducing fat and sodium levels, while maintaining the tastes consumers expect. Health and wellness is a strategic opportunity and we are committed to a thoughtful, forward-looking role in helping address it.

ouR APPRoACh continued...

enhancing Children’s Menus

Enhancing Childrens’ Menus at all Brands

30% of total calories from fat10% of total calories from saturated fat

600 calories 600mg of sodium1 or more

menu items


• In FY2011, Darden announced a commitment to rebuild troubled fisheries through three targeted Fishery Improvement Projects (FIPs). the commitment is part of Darden’s membership in the clinton Global Initiative (cGI) and was recognized by cGI as an exemplary approach to addressing environmental challenges. the initial FIP was launched in partnership with Publix Super markets and Sustainable Fisheries Partnership in the U.S. Gulf of mexico. the focus is to support the rebuilding of commercial reef fisheries, primarily grouper and red snapper, using several tools including the development of data collection methods to enhance management, testing different gear types to reduce interactions with sea turtles, and building new markets for the fish as populations recover.

• In FY2009, Darden helped launch the atlantic lobster Sustainability Foundation, a nonprofit organization that works with fisherman, processors, buyers, government agencies and other

stakeholders to preserve and enhance a viable, strong and sustainable lobster industry. Darden provided $200,000 in seed money, and continues to play an active role in the organization. See www.lobstersustainability.ca for more information.

• For over a decade, Darden has partnered with the new england aquarium to develop and provide regularly updated environmental, conservation and scientific data regarding wild-capture fish and aquaculture species for our Seafood Sustainability Dashboard. the Dashboard is used by our buyers to inform purchasing decisions.

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key ACCoMPliShMenTS

Darden restaurants serve a wide variety of foods, but there is perhaps no food more integral to our company’s history than seafood. Darden’s origins trace back to the first Red lobster restaurant that opened in 1968 and, today, we are one of the largest purchasers of seafood in the United States. In fact, seafood is the single largest item in Darden’s overall ‘food basket,’ making up more than 30 percent of the total food we buy.

However, demand for seafood as one of the healthiest, most affordable proteins available to feed a rapidly growing global population is fast outpacing supply. For Darden, this is more than a social and environmental concern; it’s also a core business issue. We have a vested interest in ensuring that the supply of seafood on which we rely remains available, affordable and meets the quality and safety standards we expect.

Darden believes that wild fisheries and aquaculture will be essential in meeting the growing demand for

seafood and that both methods can be conducted sustainably and in ways that preserve and enhance ecosystems. We also believe that Darden has both an opportunity and obligation to help make this sustainable fisheries vision a reality, and we’re working to do so within our own operations and by using our influence in the larger seafood supply chain.

as a first step, we have worked to ensure our seafood purchasing practices support and encourage sustainable fisheries. We maintain, and regularly update, a list of species that we do not buy due to overfishing. We have committed to require that all of our aquaculture products be certified to Global aquaculture alliance standards, as they become available.

Beyond our internal practices, we are focusing more broadly on education, engagement and improvement of fisheries. We are continuing to build our own knowledge of sustainable fisheries, while also working to raise awareness about, advance understanding of

ouR APPRoACh

... seafood is the single largest item in Darden’s overall ‘food basket’...

http://www.lobstersustainability.ca/


GAA: We are continuing to work with our aquaculture suppliers to help them implement the Gaa “best aquaculture practices” standards. the Gaa standards cover environment, social responsibility, animal welfare, food safety and traceability issues, and Darden’s goal is to have all of our aquaculture products certified to Gaa standards as they become available. there are standards for shrimp, tilapia, catfish and, most recently, salmon (launched in 2011). Darden was a co-founder of the Gaa, and continues to play an active role in the organization.

ENGAGEmENT: Darden is releasing our “Vision for Sustainable Fisheries” with a focus on education, engagement and enhancements of fisheries. Darden regularly engages with all our wild-caught and aquaculture seafood suppliers regarding their sustainability practices.

We are providing continuing support to organizations working with caribbean and north american fisheries to enhance lobster stocks and ensure a sustainable livelihood for fishermen.

Best Aquaculture Practices Standards

• Property Rights and Regulatory Compliance• Community Regulations• Worker Safety and Employee Relations

• Mangrove Conservation and Biodiversity Protection• Effluent Management• Sediment Management• Soil/Water Conservation• Postlarvae Sources• Storage and Disposal of Farm Supplies

• Drug and Chemical Management• Microbial Sanitation• Harvest and Transport

Community(Standards 1-3)

Environment(Standards 4-9)

Food Safety(Standards 10-12)

Ensure aquaculture can meet the growing demand for wholesome seafood produced in an environmentally and socially responsible manner.

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and advocate on the issue with a variety of external stakeholders. In addition, we are using our influence to help develop industry standards and policies that will support and advance sustainable fisheries, and which will also help harmonize the proliferation of seafood sustainability standards that are currently overwhelming producers and confusing consumers. We engage with and share our experiences and learning with a wide variety of stakeholders. We do not consider sustainable fisheries a competitive or proprietary issue; rather, we view it as common challenge that requires shared solutions.

We are also working with our suppliers to help them enhance their overall sustainability. our approach emphasizes the importance of integrated management systems to better ensure sustainable supplier practices

and traceability. In our view, win-win solutions that support, encourage and reward suppliers for moving toward more sustainable practices are the most effective means for creating change.

Finally, we are supporting efforts to enhance fish and lobster stocks in a variety of locations around the world. this is accomplished by improving monitoring and data collection, addressing fishery management practices, and partnering with communities to improve economic and environmental conditions.

clearly, no single entity can solve the challenge of creating and supporting sustainable fisheries alone, but Darden is firmly committed to working with a broad range of stakeholders to be a catalyst for positive change.


key iniTiATiveS Best Aquaculture Practices Standards

ensure aquaculture can meet the growing demand for wholesome seafood produced in an environmentally and socially responsible manner.


Vision for Sustainable FisheriesWe envision a future where wild fisheries and aquaculture

play a critical role in meeting the growing demand for healthy,

safe, secure and sustainable food supply while preserving and

enhancing ecosystems now and for generations.


eDuCATeThe concept of sustainable fisheries is complex. While most want to make a positive difference, there are an immense and diverse amount of practices, standards and science that can influence our actions. We may take it for granted, but there are a large number of people that are not aware of the concept of sustainable fisheries or the role that seafood will play in feeding the world. meaningful groundwork still needs to be laid to ensure that there is continuous improvement and ownership at all levels of the seafood community. Darden believes education can play an important role to:

ENHANCE DECISION mAkING – Darden will continue to learn from and listen to the perspectives of key external stakeholders including academics, government officials, industry leaders and nGos. We will develop systematic approaches to better educate our buyers on the issues and make informed decisions.

RAISE AWARENESS – Darden is committed to raise the awareness level with our employees, business partners and key external stakeholders.

enGAGeEffective supply chains require constructive engagement from a number of stakeholders. Ideally, engagement should focus on efficient and aligned policies, processes and standards to ensure sustainable seafood. Participating stakeholders should use the feedback and learnings to anticipate emerging issues and improve existing efforts. Darden believes a focus on engagement will lead to:

EFFECTIVE AND COORDINATED EFFORTS – Darden will continue to play a role and use its influence to develop industry standards and policies, as well as advocate for appropriate governmental regulations and policies, that support sustainable fisheries.

SHARED LEARNING – Darden will share our experiences with key stakeholders to help develop their own processes or programs and gain insights for the development of our approach.

iMPRove Darden believes that a holistic approach is necessary for sustainable fisheries. Part of our strategy means we are committed to working with and sourcing from fisheries that are sustainable based on the best science available at the time. We will ensure this by working in partnership with science-based organizations such as the new england aquarium and the Global aquaculture alliance. While the degree of sustainability can vary from fishery to fishery, we will continue to work with fisheries to enhance their overall sustainability. our approach will emphasize the importance of integrated management systems to better ensure sustainable supplier practices and traceability.

FISHERY ImpROVEmENT pROJECTS – Darden is committed to the “Fishery Improvement Process” and commits to three projects over the next three years.

INTEGRATED SUSTAINABILITY mANAGEmENT SYSTEmS – Darden will develop and implement a sustainable management systems evaluation of our suppliers emphasizing continuous improvement by ensuring sustainability processes are integrated and tracked with incremental improvements in mind.

TRACEABILITY – Darden is committed to have all products required by the Food Safety modernization act to be compliant with GS1.

Vision for Sustainable Fisheries

Darden’s Sustainable Fisheries missionDarden is committed to advancing this vision with a focus on education, engagement and improvement of fisheries.

Aquaculture at Darden

75% of aquaculture Tilapia Darden buys meet Global

Aquaculture Alliance Standards

100% of aquaculture Shrimp Darden buys meet Global


75% 100%



75% of aquaculture Tilapia Darden buys meet Global


100% of aquaculture Shrimp Darden buys meet Global


75% 100%


• By the end of FY2012 we will complete implementation of “Darden Direct”, our new, more efficient food distribution system. Because of its increased efficiency, Darden Direct has already saved over 38 million miles of driving, and the accompanying gas and emissions during FY2012.

• By the end of FY2011, approximately 75 percent of the aquaculture tilapia Darden buys was certified to the Global aquaculture alliance (Gaa) “best aquaculture practices” tilapia standard. Darden has already achieved 100 percent supplier certification for aquaculture shrimp (see Seafood Stewardship section).

• In FY2012, we took a significant step toward the development of the world’s first fully integrated lobster aquaculture park when we announced plans to build the facility in malaysia. after several years of research and investment in hatchery technology, we selected malaysia as the site, as we intend to grow a species of Spiny lobster known as panulirus ornatus indigenous to the region. While we’re excited about the prospects for this initiative, it will be several years (2017) before it’s operational and even longer (2029) before production is expected to reach scale.

Darden Food Basket

Buys $2.5 Billion in Food Productsfrom 2,000 suppliers in 35 different countries

Hundreds of thousands of peoples’ livelihoods depend on helping provide the goods and services we buy.

31%

1%

12%

7%

9%3%

14%

18%

5%

Darden Food Basket

Buys $2.5 Billion in Food Productsfrom 2,000 suppliers in 35 different countries

Hundreds of thousands of peoples’ livelihoods depend on helping provide the goods and services we buy.

31%

1%

12%

7%

9%3%

14%

18%

5%

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ouR APPRoAChDarden’s supply chain is large and complex. We buy about $2.5 billion in food products from 2,000 suppliers in 35 different countries every year which affects the environment, local economies and people’s lives in myriad ways. For example, all of the different foods we purchase require inputs of water, energy and other natural resources to produce and process. the food and other products we purchase must also be packaged and transported to our distribution centers and then to over 1,900 restaurants. Hundreds of thousands of people’s livelihoods depend on helping produce or provide the goods and services we buy. Indeed, the environmental, social and economic impacts of Darden’s supply chain are far greater than

Darden’s direct impacts and, in many instances those supply chain impacts are outside of our direct sphere of control. However, achieving Darden’s sustainability goals and upholding our commitment to food safety with seafood sustainability and animal welfare depends on actions taken at every step of the supply chain.

that’s why, over the past few years, one of Darden’s key areas of focus has been to better understand and manage sustainability issues in our supply chain and explore how we can use our scale and influence as a catalyst for positive change. For example, in 2009 we established a cross-functional Darden Supply chain Sustainability team to coordinate or initiate

Darden’s food Basket


Darden Direct Mileage Reduction

Saved over 38 MILLION distribution miles

FY 2012

FY 2011

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new efforts to address specific issues in our supply chain, such as furthering seafood sustainability (see Seafood Stewardship section) and helping launch a Supplier Packaging optimization program (see Waste Reduction section).

In addition, we have established expectations for and regularly engage our suppliers on a range of sustainability issues, from human and labor rights (covered in our Supplier code of conduct) to animal welfare (covered in our Food animal Welfare Principles and Policies) to seafood sustainability (such as by requiring Gaa certification). our approach is to develop long-term, mutually-beneficial relationships

with our suppliers, and to work with them constructively and cooperatively to improve their sustainability performance when needed.

We have also made a significant investment in implementing a best-in-class food distribution system, called Darden Direct. our ultimate goal is to create an efficient, resilient supply chain that provides Darden with safe, high-quality food and other products that are produced and distributed in the most sustainable way possible. While we have taken a number of steps to move us down this path, we know that much remains to be done and this will be a key area of focus for Darden in the years to come.

key iniTiATiveSDISTRIBUTION: as part of Darden Direct, we oversaw construction or expansion of seven dedicated and two shared distribution centers across the United States, completed in may 2012. While Darden does not lease or own the facilities (in most instances they are operated exclusively on our behalf ), we were able to heavily influence their design and operation. Darden has worked with the companies to ensure the new centers incorporate a broad range of energy and water saving features. In fact, two of the nine U.S. distribution centers in new York and texas are pursuing leeD certification and together are estimated to reduce energy consumption by almost 1.3 megawatt-hours (mWh).

TRANSpORTATION: also as part of Darden Direct, we are beginning to examine fleet fuel economy and explore alternative fuel vehicles for transporting Darden products. Darden does not own its own trucks, but about 90 percent of the trucks that

leave our distribution centers are fully dedicated to transporting Darden products.

RESEARCH: We continue to explore waste reduction through our Supplier Packaging optimization program. By working with our suppliers to reduce the amount of packaging, we reduce the amount of fuel needed to transport goods while reducing the waste packaging that can generate downstream.

LIFE CYCLE ANALYSIS: Darden is a founding member of the Steering committee and a Retail Sector lead of the Sustainability consortium. the goal is to better understand the energy, carbon and water footprint of the foods we buy and develop a uniform life cycle analysis and approach to address potential hot spots. over time, Darden will work with our supply chain partners to improve the environmental, social and economic impacts of our food supply.

Darden DirectMileage Reduction


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• Darden’s industry-leading food safety and total quality program continued to ensure that all 400 million meals served annually met our stringent food safety and quality standards.

• Darden is pleased to have participated with industry regulators in developing a harmonized, third Party Food Safety audit process for locally-sourced fresh produce, an expanding menu item, particularly at Darden’s Seasons 52 and capital Grille restaurants.

key ACCoMPliShMenTS

There is no single issue more important to Darden than food safety. We serve more than 1 million meals each day made up of 2,000+ different ingredients and we are committed to ensuring every one of those ingredients meets our stringent food safety and quality standards. We have an international team of more than 50 biologists, food scientists and public health professionals dedicated to implementing and continually improving our industry-leading food safety/total quality program.

In Darden’s view, the best way to ensure the safety of the food we purchase is to go directly to the source as well as to multiple points across the supply chain. our objective is to have traceability from “pond to plate” or from “farm to fork.” We use a risk-based, Hazard analysis of critical control Points (HaccP) approach which provides the highest level of security across all levels of the supply chain. We employ 20 field plant inspectors in the United States and 8 other countries who inspect food plants, processes and products to verify they meet our standards before they are shipped. We also have 18 total quality managers in the field who, as registered sanitarians, review and certify in-restaurant food processes to ensure the integrity of the system all the way through to when the meal is delivered to the guest.

animal welfare is another key food-related priority for Darden. as a purchaser of beef, poultry and pork, we believe ensuring the welfare of the animals in our supply chain is an ethical imperative guided by science. Darden has developed a set of Food animal Welfare Principles and Policies and we have an animal Welfare Working Group (aWWG) made up of Darden

representatives and external experts to continually monitor animal welfare issues and ensure we apply the standards within our supply chain. our suppliers are required to certify their animal welfare practices and conduct third-party audits of their practices, and we conduct on-site assessments.

While we are confident of our industry-leading food safety and animal welfare programs, we also view both as processes of continual improvement. We are committed to engage with a wide range of stakeholders to advance our own knowledge and practices, as well as the science more broadly.

ouR APPRoACh

...we are committed to ensuring every one of those ingredients meets our stringent food safety and quality standards.


Food Safety

18 field total quality managers who review and certify in-restaurant food processes to ensure the integrity of the system

20 field plant inspectors who inspect food, plants, processes and products to verify they meet our standards

50 biologists, food scientists and public health professionals implementing and improving ourindustry-leading food safety program

Farm Plant Distribution Restaurant

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NEW TECHNOLOGY: Darden is converting our food traceability data system to a fully automated one, using the GS1 barcode system. GS1 barcodes have been used on packaged goods for decades, but have only recently begun being used for fresh food products. the conversion is expected to be complete by 2015. the new technology will make the data we track more real-time and accessible, ensuring that we quickly locate and remove from the Darden supply chain any product that does not meet our standards for wholesomeness. the automated system will also enable us, over time, to expand the amount and type of data we track. For example, we are exploring how to incorporate nutritional data into the system.

Darden is transitioning our entire supplier base to Global Food Safety Initiative (GFSI) third Party audits. While we have long conducted food safety audits of our suppliers utilizing Darden tQ personnel and third-party auditors, our objective is to harmonize the process, ensuring that we are applying the same,

internationally recognized food safety standards across our global supply chain. this action will better ensure that our supplier base is in full compliance with the new food safety regulations under the Food Safety modernization act (FSma). the new FSma importer accountability provisions require importers to implement a foreign supplier verification program and GFSI is well recognized and respected for providing the necessary assurance regarding the safety of globally traded food.

While Darden’s centralized, contracted, fresh produce sourcing goes through a very rigorous preventive and verification process, locally sourced items will involve utilizing Darden’s internal team to assess regional suppliers’ best food safety practices and rely on the newly harmonized third-party Fresh Produce Safety audit as a verification step.

key iniTiATiveS

food Safety


The common theme throughout this report and all

of our sustainability efforts has been and continues

to be collaboration. this is demonstrated exceedingly

well by the success of our Green teams. thanks to

the initiative of the more than 10,000 members,

their innovative solutions demonstrate that we are a

company that matters, with people who matter.

We’ve Got It...together

Darden – GRi index

Global Reporting initiativeG 3.1 Content indexDarden – GRi Application level C

1.1Statement from the most senior decision-maker of the organization.

fully 8-9

1.2 Description of key impacts, risks, and opportunities. partial 8-9, 11-122010 Sustainability Report

10-K

2.1 name of the organization. fully 5

2.2 Primary brands, products, and/or services. fully 5

2.3operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

fully 5 10-K

2.4 location of organization's headquarters. fully 5

2.5

number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

fully 5 10-K

2.6 nature of ownership and legal form. fully 5 darden.com

2.7markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

fully 5

2.8 Scale of the reporting organization. fully 2, 5 10-K

2.9Significant changes during the reporting period regarding size, structure, or ownership.

n/a

2.10 awards received in the reporting period. fully 20 darden.com

Strategy and Analysis reporting Status

2012 SrPage reference

Other references

organizational Profile reporting Status


Other references

Darden used the 2011 G3.1 Sustainability Reporting Guidelines

of the Global Reporting Initiative (GRI) at a GRI c level. this index

covers all indicators on which we have fully or partially reported.

Please visit www.globalreporting.org for the full text of the

indicators and other information on the Guidelines.

Report Application levels

http://www.darden.com/sustainability/downloads/2010-gri-full.pdf

http://investor.darden.com/investors/investor-relations/default.aspx





http://www.darden.com/commitment/diversity.asp

http://www.globalreporting.org


Report Parameters

3.1Reporting period (e.g., fiscal/calendar year) for information provided.

fully 17

3.2 Date of most recent previous report (if any). fully 17

3.3 Reporting cycle (annual, biennial, etc.) fully 17

3.4contact point for questions regarding the report or its contents.

fully 17

3.5 Process for defining report content. fully 17

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

fully 17

3.7State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

fully 17

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

fully 17

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.

fully 17

3.10

explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

fully 12

3.11Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

fully 12

3.12table identifying the location of the Standard Disclosures in the report.

fully GRI index

3.13Policy and current practice with regard to seeking external assurance for the report.

partial 17

reporting Status


Other references


Governance, Commitments, and engagement

4.1

Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

fully 14-15 darden.com

4.2 Indicate whether the chair of the highest governance body is also an executive officer. fully

darden.comexecutive officers

4.3

For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members.

fully2011 annual Report

darden.com

4.4mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

fully 15 darden.com

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. fully darden.com

4.8

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

fully2010 Sustainability Report

darden.com

4.9

Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

partial 14-15 10-Kdarden.com

4.10Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance.

fully darden.com

4.12externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

fully 26-27, 44-45

4.13

memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.

partial 26-27, 45 2010 Sustainability Report

4.14 list of stakeholder groups engaged by the organization. fully

10, 15, 20-23, 26-29, 42-45, 50-51

2010 Sustainability Report

4.15 Basis for identification and selection of stakeholders with whom to engage. fully 15, 20-23, 26-27 2010 Sustainability Report

4.16approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

partial 15, 26-27 2010 Sustainability Report

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

partial 2010 Sustainability Report

reporting Status


Other references


http://www.darden.com/about/executive_members.asp

http://www.darden.com/about/executive_members.asp

http://files.shareholder.com/downloads/DRI/1820661533x0x493251/62EBB54F-E8F6-4EB8-BB11-392DBEF89681/Darden_2011AR.pdf





http://www.darden.com/careers/culture.asp










economic

Economic performance

Dma ec Disclosure on management approach ec partial 14-15, 21-22, 48 2011 annual Report

ec1

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

fully 20-25, 28-29, 48 2011 annual Report

ec2Financial implications and other risks and opportunities for the organization's activities due to climate change.

fully 8-9, 34-352010 Sustainability Report carbon Disclosure Project

10-K

Indirect economic impacts

ec9Understanding and describing significant indirect economic impacts, including the extent of impacts.

partial 24-25

environmental

Dma en Disclosure on management approach en partial 12, 15, 31-39

Energy

en3Direct energy consumption by primary energy source.

partial34-35

(co2e)carbon Disclosure Project

en4 Indirect energy consumption by primary source. partial34-35

(co2e)carbon Disclosure Project

en5energy saved due to conservation and efficiency improvements.

fully 34-35

en6

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

partial 32-34

en7Initiatives to reduce indirect energy consumption and reductions achieved.

partial 34, 48-49

Water

en8 total water withdrawal by source. partial 36-37

reporting Status


Other references

reporting Status


Other references




http://www.darden.com/sustainability/downloads/cdp-2012-investor-cdp-2012-information-request.pdf





environmental continued...

Emissions, effluents and waste

en16total direct and indirect greenhouse gas emissions by weight.

fully 34 carbon Disclosure Project

en17other relevant indirect greenhouse gas emissions by weight.

fully carbon Disclosure Project

en18Initiatives to reduce greenhouse gas emissions and reductions achieved.

fully 34-35 carbon Disclosure Project

en21 total water discharge by quality and destination. partial 37

en22 total weight of waste by type and disposal method. fully 39

products and services

en26Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

fully 26-27, 32-33, 34-39

Transport

en29

Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce.

partial 34-35, 48-49

Dma la Disclosure on management approach la partial 20-23

products and services

la1total workforce by employment type, employment contract, and region, broken down by gender.

fully 21

la2total number and rate of new employee hires and employee turnover by age group, gender, and region.

partial 20

la3Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

partial 22-23

Training and education

la10average hours of training per year per employee by gender, and by employee category.

partial 23

la11

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

partial 23 2010 Sustainability Report

Social: labor Practices and Decent Work

reporting Status


Other references

reporting Status


Other references






Diversity and equal opportunity

la13

composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

fully 20-232011 annual Report

darden.com

Social: labor Practices and Decent Work continued...

Social: human Rights

Dma HR Disclosure on management approach HR partial 49 2010 Sustainability Report

Social: Society

Dma So Disclosure on management approach So partial 24-25, 28-29 darden.com

Local communities

So1Percentage of operations with implemented local community engagement, impact assessments, and development programs.

partial 28-29

public policy

So5Public policy positions and participation in public policy development and lobbying.

partial 26, 42 2010 Sustainability Report

So6total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

partial Federal election commission

Social: Product Responsibility

Dma PR Disclosure on management approach PR partial 42-43, 50-51

Customer health and safety

PR1

life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

fully 50-51

reporting Status


Other references

reporting Status


Other references

reporting Status


Other references

reporting Status


Other references




http://www.darden.com/commitment/


http://www.fec.gov/data/Lobbyist.do?format=html


Social: Product Responsibility

product and service labelling

PR3

type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

partial 42-43

marketing communications

PR6

Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

partial 42-43

reporting Status


Other references


Darden intends to maintain a two-year sustainability reporting

cycle, while also providing regular and real-time updates about our

sustainability activities - We encourage you to track our progress

through our blog at www.darden.com/sustainability or via our social

media sites listed below.

Twitter.com/DardenSustains

Facebook.com/DardenSustains

YouTube.com/DardenTV

We are enthusiastic about the future of sustainability at Darden and

look forward to continuous improvements. As always, we welcome

your feedback. Should you have any comments or questions, please

email them to [email protected].

Stay connected


http://Twitter.com/DardenSustains

http://www.facebook.com/DardenSustains

http://www.youtube.com/DardenTV

mailto:sustainability%40darden.com?subject=

www.darden.com/sustainability


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