Environmental Affairs 1Introduction; Corporate Compliance…

• Accountability for Environmental Matters

“Environmental liability is strict liability….”

“100% compliance 100% of the time.”

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• Individual and Subsidiary Reporting

“All employees have a duty to report potential violations…to their supervisors.” Escalate if not addressed.

“Smithfield maintains a confidential hotline to encourage employees to freely communicate their environmental compliance issues or concerns (including any violation of law or improper conduct).”

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• Individual and Subsidiary Reporting

Each Subsidiary Environmental Coordinator reports quarterly to the Legal Dept and Corporate Environmental Affairs.

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• Environmental Compliance Committee

As part of its overall compliance assurance strategy, Smithfield’s Environmental Compliance Committee (“ECC”) meets quarterly on matters specifically focused on environmental compliance responsibilities and the environmental program generally.

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• Environmental Compliance Committee

As part of its overall compliance assurance strategy, Smithfield’s Environmental Compliance Committee (“ECC”) meets quarterly on matters specifically focused on environmental compliance responsibilities and the environmental program generally.

Environmental Affairs 4Emergency Release Reports and Environmental Incidents: Follow-up with Environmental Affairs

• You must: – be prepared to make “immediate reports to the government of spills,

releases, or other emergencies.”

– be familiar with “all applicable release report requirements…and follow through procedure for each release report.”

– “promptly notify [Smithfield Foods] Environmental Affairs” (after appropriate gov’t notifications completed).

Environmental Affairs 6 Environmental Documents/Records

• Environmental records “retained for 5 years after their creation unless specific regulatory requirements specify a shorter retention period.”

• The Legal Department may issue a “legal hold” memorandum to the subsidiary – overrides the policy.

• Records Policy exceptions for the following items - “kept indefinitely” :– a. Any and all permits…;– b. The applications for any all permits;– c. Agency correspondence specifically authorizing specific

activities or related agency interpretations; – d. Consent decrees or other settlement agreements with any

federal, state or local governmental agencies; and – e. Waste disposal records.

Environmental Affairs 8Protocol for Managing Environmental Inspections by Government Agencies

• Facility lead/contact• Notify Corporate• Opening mtg/scope/protocol• Cooperate…don’t volunteer• Don’t speculate• Accompany at all times – notes, photos, split samples• Interviews• Don’t sign anything• Closing conf

Environmental Affairs 9Notice by a Governmental Agency of a Violation and/or Enforcement Actions

• NOVs, RFIs, etc. must be reported within four (4) hours to Environmental Affairs and the Legal Department.

• Subsidiary environmental personnel should: – 1. Coordinate with the Legal Department…and provide support,

including complete and accurate factual and technical information.– 2. Ensure that Environmental Affairs and the Legal Department

have adequate time and opportunity to review and comment on any response.

– 3. Implement measures to correct any compliance deficiency.

Environmental Affairs 12 Communicating With the Media

• All must be coordinated with the corporate media team

• If you are contacted by the media, do not answer questions or provide information. Instead:

• Get the name and organization of the individual and a phone number where they can be reached.• Ask for their deadline - tell them someone will call

back.

• Contact communication or public affairs personnel and Smithfield media team which is directed by Dennis Treacy and Keira Lombardo.