darden citizenship 2013 update · 2013 update citizenship. 2013 citizenship update 2 about this...

DARDEN CITIZENSHIP

2013 UPDATE Citizenship

2013 Citizenship Update2

About This ReportThe 2013 Citizenship Update is designed to provide our stakeholders with an update on Darden’s citizenship progress and performance since publication of our previous report in 2012. Performance data is reported on a fiscal year basis (Darden’s fiscal year ends the last Sunday in May of 2013). We focus primarily on activities during fiscal year 2013 (FY2013), though we provide time-series data where available.

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 assurance. Darden reports its energy, greenhouse gas emissions and water data to the Carbon Disclosure Project (CDP) each year. Our CDP filings are available at www.Darden.com/sustainability.

In FY2013, we aligned our Foundation, Sustainability and Diversity Outreach under a broader Citizenship function. Darden maintains a two-year reporting cycle, and our next comprehensive Citizenship Report will be published by the end of 2014.

Dardenat a GlanceHeadquartered in Orlando, Florida, Darden Restaurants (NYSE: DRI) is comprised of multiple restaurant brands and at the end of FY2013, we operated a total of 2,138 Red Lobster®, Olive Garden®, LongHorn Steakhouse®, Bahama Breeze®, Seasons 52®, The Capital Grille®, Eddie V’s® and Yard House® restaurants in the United States and Canada. Additionally, as of the end of FY2013, 37 Darden brand franchised restaurants were in operation in Japan, the Middle East, Puerto Rico and Mexico.

We own and operate all of our restaurants in the United States and Canada. Darden’s sales from continuing operations were $8.5 billion in FY2013 compared to $8 billion in FY2012. Darden’s acquisition of Yard House restaurants occurred in FY2013, consisting of an additional 44 restaurants to the Darden portfolio. For more information about Darden, see www.Darden.com/About.


People Planet Plate

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

in our culture, restaurants and supply chain.

Even as Darden Restaurants faced challenging business conditions in FY2013, our company’s commitment to being a reliable, solutions-oriented corporate citizen remained strong. Indeed, we are more convinced than ever that the investments we make in citizenship today are integral to our continued success tomorrow. That’s because we are operating in a New Era for our industry and for business generally, one characterized by increased expectations among guests, employees and other stakeholders. And one of the areas where we see these heightened expectations is citizenship.

Our employees want to work for a company that supports them and their aspirations – and one they can believe in and be proud to work for. For many – particularly the Millennials who make up the largest portion of our workforce – this translates into expectations about not only what Darden does to create a compelling place to work, but also how we give back to communities and conserve natural resources.

Our guests are looking for new experiences and options, and have an expanding definition of fresh, nutritious, high-quality food. Increasingly, they want to know more about the foods they eat. This is true even as many of our guests continue to be financially constrained and demand greater value when they dine with us.

And a broad array of stakeholders expect Darden to create social value by contributing to economic development, investing in local communities, supporting our employees and ensuring the

fair treatment of workers throughout our supply chain. They also look to Darden to address the environmental challenges facing our planet today, from declining ocean health and habitat loss to water scarcity and climate change.

To be sure, thriving in this New Era presents challenges – but we are confident about our ability to meet the challenges and about Darden's future. We believe our company’s strong culture and commitment to citizenship will be key contributors to our success. They will help us continue to attract and retain a committed workforce, expand our appeal to a broader segment of guests and strengthen the resiliency of our supply chain.

In this update report, we provide a brief summary of our citizenship performance and key initiatives in FY2013. We have much to be proud of, including being named to FORTUNE magazine’s list of the 100 Best Companies to Work For™” for the third year in a row, launching more nutritionally-balanced children’s menus, and making strong progress toward our energy and water efficiency goals. At the same time, we know there’s more work to be done to continue to meet and exceed the expectations of our stakeholders – in short, to be a company that truly matters.

To Our Stakeholders

Clarence Otis, Jr.Chairman & Chief Executive Officer


10.9 MILLION

DONATED

POUNDS OF FOOD

IN FY2013

DARDENHARVESTPROGRAM

Strong Culture

Strong Culture

Community Investment

Community InvestmentSince 1995, the Darden Foundation has awarded more than $71 million in grants.

Performance in FY2013Darden Objectives

Performance Summary - ObjectivesThe following provides a high-level overview of Darden’s performance related to our citizenship focus areas. Where relevant, we report our progress relative to specific goals we have established.

$71MILLION

Darden FoundationContributions

Since 1995, the Darden Foundation has awarded more than $71 million in grants.

GHG Emissions

Continue to build a diverse workforce and provide all employees with meaningful work and a chance to build a rewarding career.

Maintain our commitment to promote candidates from within our company.

Aid in the battle against hunger by donating surplus, wholesome food that was not served in our restaurants to local food banks.

Make a meaningful contribution to the communitites where we operate by supporting and partnering with a broad range of nonprofit organizations.

Reduce our greenhouse gas emissions (GHG) intensity through our energy efficiency efforts.

612

-16.4%†

FY2008 FY2013

512† % change since FY2008M

etri

c To

ns o

f CO

2e

Average Per Restaurant GHG Emissions

Internal Promotions

Foundation Contributions

99% General managers and managing partners are from our restaurant ranks

50% Restaurant managers promoted from hourly positions

Internal Promotions

45%52%

190,964 Our employees have helped us earn the distinction of being named to FORTUNE magazine’s “100 Best Companies to Work For” list

Total Darden workforce

52% Among Restaurant Management, 39% are women

Women in the Workplace

45% Among Restaurant Management,28% are minorities

Minorities in the Workplace

Diverse Workforce


ON TRACK

WaterReduce per restaurant water use by 15% by 2015 from our baseline of FY2008.

WasteSend zero waste to landfill over time.

Health & WellnessReduce the overall calorie and sodium footprint of our core menus 10% by FY2016 and 20% by FY2021 and enhance the nutrition credentials of our children’s menus.

Energy

Reduce per restaurant energy use by 15% by 2015 from our baseline of FY2008.

3,202,118Ave

rage

ene

rgy

use

(MW

h)

per r

esta

uran

t

All Restaurants -12.3%†

1765 1627 1554 1547FY2012 FY2013

FY2011FY2008[baseline]

† % change since FY2008

Performance in FY2013Darden Goals

Performance Summary - Goals

Seafood Stewardship

Require all of our aquaculture products to be certified to, or in the process of achieving certification to, Global Aquaculture Alliance standards, as they become available for the species.

All Restaurants

3,342 2,775 2,733 2,837

-15.1%†

Ave

rage

wat

erw

ithdr

awal

(kga

l)pe

r res

taur

ant

FY2012 FY2013


† % change since FY2008

FY2012 FY2013


Per

cen

t of

wa

ste

div

erte

dfr

om la

nd

fill

24.5%28.1% 28.8% 28.7%

<_30% of totalcalories from fat

10% of totalcalories from saturated fat

600calories

600 mgof sodium

80%Tilapia

Shrimp 85%Salmon 80%

Catfish

Percentage of aquaculture Darden buys that meets Global Aquaculture Alliance Standards | www.gaalliance.org

ON TRACK

ACHIEVED

ON TRACK

UNCHANGED

New Children’s Menu

Aquaculture at Darden


PROVIDING OPPORTUNITIES TO BUILD REWARDING CAREERS

At Darden, we’re passionate about food. But, ultimately, what we do comes down to people - from the more than 200,000 employees and more than one million guests we serve each day to the neighbors in the communities that are home to our restaurants. Our aim is to contribute to the success and well-being of the peoples’ lives we touch by providing rewarding employment, outstanding service and food, and meaningful involvement in our local communities.

People

Peo

ple

CREATING A DIVERSE WORKFORCE

One-third of Americans get their first work experience in restaurants. At Darden, we are committed to making that experience meaningful, and we pride ourselves on the training opportunities we provide our employees to help them develop the skills and experience needed to succeed. Today, one in two restaurant managers at Darden are promoted from hourly positions, and nearly 100% of General Managers and Managing Partners came from our restaurant manager ranks. "Always Learning, Always Teaching" is a core value at Darden; growing

talent internally is a priority and leads to an internal promotion rate of 55%. Whether internally promoted or an external hire, all new new managers participated in the same 13-week training program.

We continue to provide pathways to our employees who work hard to achieve their personal and professional dreams. We have more than 9,000 leadership positions in our restaurants, and we pride ourselves on promoting individuals from within.

Diversity Representation - Minority

RestaurantManagers

Restaurants

Team Members

53%52%

41%40%

56%59%

33%29%

26%26%29%24%

General Managers/Managing Partners

Director/ManagingDirector/RVP

Restaurant Support CenterBelow Director

Officers

Diversity Representation – Women

10%

20%

30%

40%

50%

60%

70%

FY2010FY2009 FY2011 FY2012 FY2013US population only. Casual Dining Industry Benchmark sourced from People Report’s Human Capital Intelligence Report for April 2013. *Small populations will show more year over year volatility.

190,964

7,480

2,092

1,209

493 102*

FY2013 Year-EndEmployee Population

Corporate

RestaurantManagers

TeamMembers

46%43%

31%27%

31%29%

21%19% 21%21%21%14%



Officers

Diversity Representation – Minority

10%

20%

30%

40%

50%

60%

70%


190,964

7,480

2,092

1,209

493 102*


Restaurants


Corporate

Our focus on diversity is a critical part of our commitment to help all employees achieve their potential. We continuously work to attract and retain a workforce that reflects our diverse customer base. To achieve this, we offer on-going diversity training, employee resource groups and accountability at every level of leadership. Today, 31% of Darden’s restaurant managers are minorities and 41% are women. Our commitment to diversity is reflected in our executive management ranks as well, including two women who were appointed presidents of LongHorn and Red Lobster in FY2014.

Diversity Representation - Women

RestaurantManagers

Restaurants

Team Members

53%52%

41%40%

56%59%

33%29%

26%26%29%24%




Officers

Diversity Representation – Women

10%

20%

30%

40%

50%

60%

70%


190,964

7,480

2,092

1,209

493 102*


Corporate


Peo

ple

REAFFIRMING OUR EMPLOYEE HEALTH BENEFITS

Since 1999, Darden employees have provided over $15 million in assistance to more than 39,000 of their coworkers facing emergencies through the Darden Dimes program.

In FY2013, $2.8 million in grants were issued for emergency assistance, nearly double the amount we distributed through the program the previous year. This increase was due to the large number of employees that were affected by Hurricane Sandy and Isaac, therfore we accessed Darden Dimes reserves to come to their assistance.

$1.7 million

In FY2013 49% of our employees contributed an average of 45 cents per week totaling:

$2.8 millionOver 7,000 emergency assistance grants were issued in FY2013 totaling:

HELPING COWORKERS IN NEED Darden Dimes

Darden is working hard to provide employees with the benefits, information and resources they need to obtain health insurance under the new Affordable Care Act (ACA). Darden is offering a major medical plan for all employees who worked 30 or more hours per week in 2013. Eligible employees can choose from five medical plan options, ranging from Bronze (lowest cost) to Platinum (highest cost), and offered by five different insurance companies. For employees who do not qualify for major medical, Darden created a website (www.statemedical411.com) where employees can learn about medical options in their state and receive assistance to enroll.

Darden is also offering dental and vision plans for all employees with multiple options and providers. The company is also offering a new “First Day Choice” program that helps pay for services such as office visits, prescription drugs and hospital stays. Benefit Bundles provide additional options for people to manage their healthcare costs. Other benefits include disability insurance, life insurance, health savings accounts, flexible savings accounts, accident insurance, critical illness insurance, and a group legal plan.

CONTRIBUTING TO LOCAL ECONOMIES

Economic Impact

100 permanent jobs*

200 construction jobs*

$3.5 million in capital investments*

OneRestaurant Opening

Economic Impact

* All numbers are approximate

100 permanent jobs*

200 construction jobs*

$3.5 million in capital investments*

OneRestaurant Opening

Economic Impact

* All numbers are approximate

is equal to

Despite challenging business conditions in FY2013, Darden generated solid sales and earnings growth. We also continued to contribute to local economic growth by making capital investments to build new restaurants, providing employment, procuring goods and services from our suppliers, and paying taxes to local governments.

BEING NAMED ONE OF THE “100 BEST COMPANIES TO WORK FOR”In 2013, for the third straight year, Darden was recognized by FORTUNE magazine as one of the “100 Best Companies to Work For” in America. This year, we moved from 99th on the list to 65th. We are the only full-service restaurant company ever to be named to the list. It’s an honor that we are particularly proud of because much of the scoring rests on independent

employee survey results, most of whom work within our restaurants. We view it as important validation that we are creating the kind of workplace to which we aspire – one where every one of our employees feels valued, is treated with respect and has the opportunity to achieve his or her potential.


Consistent with one of our core values, “Always Learning, Always Teaching,” Darden believes education is key to a promising future – and that all young people deserve access to the tools and training needed to succeed in the 21st century workplace. Through Recipe For Success, we foster opportunity for low-income students by empowering them with the tools and resources needed to graduate from high school and pursue a college or technical school education. Our network of partners – Boys & Girls Clubs of America, City Year, College Summit, Hispanic Scholarship Fund, National Restaurant Association Educational Foundation and United Negro College Fund – have the breadth and depth needed to help address student gaps and provide access to the tools, hands-on learning and services needed to make students’ dreams a reality.

FOSTERING OPPORTUNITY WITH RECIPE FOR SUCCESS®

For Darden, being a good neighbor means believing that the service outside our restaurants is as important as the service inside. Darden puts that belief into action by supporting and partnering with a broad range of organizations working to address the unique needs of the communities where we operate.

Through the Darden Foundation, we focus our community investments in three priority areas: fostering opportunity through education with our Recipe for Success® initiative; preservation of natural resources; and awarding Good Neighbor grants to organizations that are vital to the success and vibrancy of local communities.

Peo

ple

$71MILLION

Darden FoundationContributions

Since 1995, the Darden Foundation has awarded more than $71 million in grants.

Darden’s Recipe For Success®

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.. .

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™

Being a Good Neighbor means supporting the community through local action. We support the critical services of hunger relief, disaster relief and shelter across the country, as well as integral community programs in our hometown of Central Florida. Some of our partners include Feeding America food banks, American Red Cross, Habitat for Humanity International, Second Harvest Food Bank of Central Florida and the Coalition for the Homeless of Central Florida.

ADDRESSING CRITICAL NEEDS BY BEING A GOOD NEIGHBOR

As a restaurant company, our business depends on preserving natural resources. The basic ingredients for the meals we serve depend on healthy marine and agricultural ecosystems. That is why Darden is committed to advancing sustainability within our operations, as well as through our community investments. Through the Darden Foundation, we partner with organizations that conserve and restore water ecosystems, create and maintain community gardens that promote food security, and protect and preserve open spaces. Some of our partners include The New England Aquarium, The Everglades Foundation and National Recreation and Parks Association.

PRESERVING OUR NATURAL RESOURCES

Darden Foundation ContributionsCOMMUNITY INVESTMENTS


Peo

ple

Darden’s Recipe For Success®

DONATING TO LOCAL COMMUNITIES, ONE RESTAURANT AT A TIME

As a restaurant company, it is impossible to ignore the reality of the need for food. Every day through the Darden Harvest program, we donate surplus, fresh food not served to our guests to local community food banks across the United States and Canada. Since its inception in 2004, Darden Harvest has donated more than 66 million pounds of food with a fair market value of nearly $600 million – helping those in need, while also reducing food waste. In FY2013, Darden donated 10.9 million pounds of food – enough to feed 3,250 families of four, three meals a day for an entire year.

AIDING IN THE BATTLE AGAINST HUNGER

0

66M

‘04 – ’13FISCAL YEARS

Donated more than66 million pounds of food

Darden Harvest Program

Launched in FY2012, Darden’s Restaurant Community Grants program empowers each of our restaurants to award a $1,000 grant to support local community programs that align with one of our three focus areas. The program enables Darden to harness our employees’ passion for making a difference and their understanding of the unique needs in their communities. In the process, we deepen our connections in the communities where our employees live and work. In FY2013, we awarded more than $1.9 million to more than 850 nonprofits across the U.S. and Canada through the program.

Recognitions:

4 Black Enterprise magazine’s “40 Best Companies for Diversity” in 2012

4 HispanicBusiness media “Top 50 Best Companies for Diversity” in 2013

4 Human Rights Campaign graded Darden with a 100% score on the 2013 Corporate Equality Index

4 LATINA Style magazine’s “50 Best Companies for Latinas to Work for in the US” in 2013

4 Women’s Foodservice Forum’s “SOAR Award” – recognizing Darden as a company that provides opportunity and advancement for female leaders in 2011

Darden awarded 855 grants in FY2013 in the following areas:

378Connecting

Students to Post Secondary Education

Recipe for Success

30Preserving

NaturalResources

Good Neighbor

447FightingHunger

Preservation®

Restaurant Community Grants


USING ENERGY MORE EFFICIENTLY

At Darden, we know that one of the ways we impact the planet is through our physical footprint at our more than 2,100 restaurants, nine distribution centers and our corporate headquarters. That’s why, in 2009, we established a set of environmental targets designed to drive progress on natural resource conservation. Since then, Darden has made strong progress toward our goals to reduce per-restaurant energy and water use by 15% by 2015. We have also taken steps to expand our recycling capacity and better understand our waste streams as we work toward our goal to one day send zero waste to landfill. These efforts are not only conserving natural resources, but financial ones as well: since 2009, Darden’s environmental efforts have saved the company more than $20 million.

PlanetPl

anet

1.40%

1.94%

31.43%

65.23%

FY

201

3

C02e Emissions by Source

Total FY2013 Emissions* = 1,058,999 Metric Tons CO2e(Includes Darden’s scope 1 and 2 emissions, plus emissions related to employee travel.)* Total emissions does not include Eddie V’s or Yard House.

OliveGarden

2,14

4

1,99

41,

889

1,88

6

-12.0%†

1,64

2

1,50

71,

459

1,43

9

RedLobster

-12.3%†

1,16

6

1,06

01,

019

1,03

6

LongHornSteakhouse

-11.1%†

2,63

9

2,28

02,

051

2,03

9

BahamaBreeze

-22.7%†

1,78

5

1,48

1

1,64

81,

549

CapitalGrille

-7.7%†

1,50

1

1,39

21,

175

1,20

0

Seasons52

-20.0%†

3,064,3372,977,133 3,202,118

Energy Efficiency

Ave

rage

ene

rgy

use

(MW

h)pe

r res

taur

ant

Tota

l ene

rgy

use

(MW

h)**

3,039,075

Ave

rage

ene

rgy

use

(MW

h)

All Restaurants -12.3%†

1765 1627 1554 1547

7.6% increase*

FY2011FY2008 FY2012 FY2013

† % change since FY2008* From FY2008 – FY2013 we increased our number of restaurants by 400 (an increase of 26%).** Total energy use does not include Eddie V’s or Yard House.

[baseline]

Energy Efficiency C02e Emissions: Total and by Source

Darden continues to drive energy efficiencies across our operations. Since FY2008, we have reduced our per restaurant energy use by more than 12%. Our energy efficiency improvements also translate into reductions in average greenhouse gas emissions. Since FY2008, our per restaurant carbon dioxide equivalent (CO2e) emissions have declined by 16.4% (from 612 metric tons of CO2e per restaurant in FY2008 to 512 metric tons of CO2e in FY2013).

In FY2014, we are expanding our pilot of Energy Management Systems from an initial ten restaurants to an additional 50. Through the monitoring of temperature, lighting and refrigeration in our restaurants, they are demonstrating

effectiveness in decreasing energy consumption while also decreasing cost by up to 7%. Darden is also advancing a variety of other initiatives to reach our energy efficiency goal. We are installing a new steamer technology in all Red Lobster restaurants that reduces energy and water consumption. We tested solar water heaters in select restaurants and began the design and construction of the first LEED-certified Yard House, located in Orlando, FL. Finally, we are continuing to expand use of more energy-efficient LED lighting and engaging our restaurant Green Teams to use energy-efficient equipment “Power Up” procedures.

Darden reports more detailed energy, GHG emissions and water data and information through the Carbon Disclosure Project (CDP), and we make our CDP filings available on our website www.Darden.com/Sustainability


In restaurants, water consumption is vital to food preparation. However, Darden is committed to finding innovative ways to use water more efficiently, while maintaining our commitment to food safety. Through a wide range of water-saving initiatives, we have reduced per restaurant water use by more than 15% since FY2008. While our overall performance trend is positive – in fact, we achieved our 2015 target ahead of schedule – between FY2012 and FY2013, our per restaurant water use increased. We are still working to understand the factors that contributed to increased water use, while continuing to implement new water-saving initiatives. For example, we are continuing to test new dipper well technologies that can significantly reduce water. We also recently expanded a water-saving irrigation pilot program from two restaurants to 50 additional restaurants in Florida and California, where water is under the most strain.

EXCEEDING OUR WATER GOALS

Plan

et

WORKING TO REDUCE WASTE AND INCREASE RECYCLING

Total Waste Generated and Volume Recycled(in cubic yards)

Total Waste

Tota

l Wa

ste

Volum

e Recycled

Volume Recycled

1,139,564 1,567,416 1,672,736 1,745,660

4,649,158

4,649,158

5,579,291

5,579,291

5,835,557 5,835,5576,111,447

Landfill Diversion Rates

FY2011FY2008 FY2012 FY2013

+ % change since FY2008[baseline]

FY2011FY2008 FY2012 FY2013


FY2011FY2008 FY2012 FY2013



6,111,4471,745,660

1,672,736

1,567,416

1,139,564

198,

652

Per

cen

t of W

ast

e D

iver

ted

from

La

nd

fill

24.5%

28.1% 28.8% 28.7%

0%

100%


Water Withdrawal

As we work to one day send zero waste to landfill, Darden is focused on expanding recycling across our operations. One of our key challenges is organics recycling (or composting), since organics make up the largest component of our waste stream. However, organics recycling is not widely available and, even where it is, requires a variety of changes in how we manage

waste within our restaurants. To help build our knowledge and experience, in FY2014 we are piloting organics recycling projects in select restaurants in Orlando, FL. Darden also works to reduce food waste by donating high-quality, surplus food to hunger relief organizations through our Darden Harvest program.

Note: Darden acquired Eddie V’s in FY2012 and Yard House in FY2013. In FY2014, we are working to integrate these restaurants into our environmental performance reporting. For the sake of continuity, these brands will not be incorporated into our reporting against our 2015 energy and water goals (though they will be included in any goals set in the future).

3,3422,775 2,733 2,837

-15.1%† 4.6%*

5,616,1465,180,505

5,391,7815,872,043

Ave

rage

wat

er

with

draw

al (k

gal)

per r

esta

uran

t

All

rest

aura

nts

Total waterwithdrawal (kgal)**

All restaurants

FY2011FY2008 FY2012 FY2013

† % change since FY2008* From FY2008 – FY2013 we increased our number of restaurants by 400 (an increase of 26%).** Total water withdrawal does not include Eddie V’s or Yard House.

[baseline]

Water Withdrawal

3,41

42,

668

2,62

62,

575

RedLobster

OliveGarden

LongHornSteakhouse

CapitalGrille

BahamaBreeze

Seasons52

4,09

13,

452

3,42

43,

742

1,54

71,

489

1,51

41,

580

2,19

82,

380

2,11

42,

039

5,17

04,

403

4,15

43,

576

2,93

62,

290

1,90

02,

060

-24.6%†

-8.5%†

2.1%†

-7.2%†

-30.8%†

-29.8%†

Ave

rage

wat

er w

ithdr

awal

(k

gal)

per r

esta

uran

t

Total Waste Generated and Volume Recycled(in cubic yards)*


Total Waste

Tota

l Wa

ste

Volum

e Recycled

Volume Recycled

1,139,564 1,567,416 1,672,736 1,745,660

4,649,158

4,649,158

5,579,291

5,579,291

5,835,557 5,835,5576,111,447


FY2011FY2008 FY2012 FY2013


FY2011FY2008 FY2012 FY2013


FY2011FY2008 FY2012 FY2013



6,111,4471,745,660

1,672,736

1,567,416

1,139,564

198,

652

Per

cen

t of W

ast

e D

iver

ted

from

La

nd

fill

24.5%

28.1% 28.8% 28.7%

0%

100%

The percent of total waste that was diverted from landfill through recycling or reuse.

*Total waste generated and volume recycled does not include Eddie V's and Yard House.


MAKING HEALTH AND WELLNESS AN INTEGRAL PART OF OUR MENUS

When guests visit one of our restaurants, they’ve come to expect a high-quality, delicious meal. But their definition of quality is evolving. Increasingly, they want to know more about the food they are eating: Where it came from, how it was produced, its nutritional content and more. Darden is taking an ever-broader approach to the food we serve – from ‘farm to fork’ and ‘pond to plate.’ However, in recent years, we’ve expanded our efforts, including improving the nutritional content of our menus, engaging more deeply on seafood stewardship and developing relationships that help us understand and support the sustainability of other foods we serve.

Plate

Darden’s Commitment Enhancing Children’s Menus

Menu Options

10% by 2016

20% by 2021

<_is less than or equal to...

Plat

e

Darden recognizes obesity as one of the top public health challenges facing our society today. Working with the Partnership for a Healthier America, in 2011 we publicly committed to help address this challenge by reducing the overall calorie and sodium footprint of our core menus 10% by FY2016 and 20% by FY2021 and to enhance the credentials of our children’s menus. We are making progress on our calorie and sodium goals and, in FY2013, Darden released new children’s menus that are compliant with our promise - including offering 1% milk as the default beverage, a fruit or a vegetable as the default side and prominently promoting at

least one item that meets defined nutrition criteria. We have also made significant investments to enhance our nutrition analysis capabilities. These new capabilities help us to make nutritional considerations a more integral part of recipe development, in the same way taste, quality and cost have always been. This new approach has proven critical to helping us develop lighter dishes on many of our menus. All of our work in health and wellness continues to be guided by three principles: transparency in nutritional information, choice and variety in our menu options and innovation and collaboration in evolving our menus.

OFFERING GUESTS OPTIONSDarden’s brands are offering our guests increasing options through lighter fare selections. Seasons 52 is a pioneer in this approach and today, almost all Darden brands offer lighter fare selections. As consumers' diets continue to evolve, Darden is providing options, including vegetarian, gluten-free and many others. The goal is to continue to provide an atmosphere where guests can be nourished while meeting their goals.

Gluten Free Vegetarian Low Calorie


CONTINUING OUR FOCUS ON SEAFOOD STEWARDSHIP

PARTNERING TO ADVANCE THE SUSTAINABILITY OF BEEF As we work to better understand and manage the social and environmental footprint of the foods we serve, one of our areas of focus is beef. We believe that advancing sustainability in the beef industry is essential for all stakeholders in the beef value chain, and Darden is committed to helping find solutions that reduce the environmental impact of beef production and support the livelihoods of beef producers. We are engaging with our suppliers and partnering with organizations such as the National Cattlemen’s Beef Association and the Global Roundtable on Sustainable Beef to support research and promote improved practices.

ADDRESSING ANIMAL WELFARE IN OUR SUPPLY CHAINDarden believes that ensuring the welfare of animals in the food supply chain is both an ethical issue and an important aspect of food safety. Darden has a set of Food Animal Welfare Principles and Policies and suppliers are required to certify their animal welfare practices, which are confirmed through third-party audits. Darden regularly reviews our principles and policies as new science and information becomes available and, in FY2013, we updated them to more clearly outline our supplier audit process.

12%

7%

5%

11%

24%

7%

10%

5%

4%

15%

Our Food Basket

Darden buys approximately$2.5 billion in food products per year from 2,000 suppliersin 35 different countries

80%Tilapia

Shrimp 85%Salmon 80%

Catfish

Percentage of aquaculture Darden buys that meets Global Aquaculture Alliance Standards as of the end of FY2013 | www.gaalliance.org

Aquaculture at Darden

A NEW CODE OF CONDUCT FOR OUR BUSINESS PARTNERSDarden is committed to operating in an ethical and responsible manner, and we expect those with whom we do business to share this commitment. In FY2013, we introduced a new Supplier Code of Conduct and Franchisee Code of Conduct outlining our expectations in areas such as legal compliance; ethical business practices; human rights and labor laws; and environment, health and safety practices. Suppliers and Franchisees will be required to provide Darden with affirmation that they have read and understand the Code of Conduct and agree to adhere to its provisions.

Plat

e

No food is more important to our company’s history than seafood, the single largest item in our ‘food basket.’ Darden has a vested interest in preserving this resource, not only for the growth of our business, but also for its role as a healthy, affordable source of protein for millions around the world.

Darden regularly evaluates our purchasing practices to ensure they support and encourage sustainable fisheries. In partnership with the New England Aquarium, we maintain and regularly update a list of wild harvest species that we do not buy due to overfishing or mismanagement. We have also committed to require that all aquaculture species be certified to Global Aquaculture Alliance (GAA) standards, as they become available.

By FY2013, we were working with our suppliers to implement GAA standards for four species, including catfish and salmon.

We also support initiatives working to rebuild and improve the sustainability of troubled fisheries. For example, through our involvement in the Clinton Global Initiative, Darden has committed to develop three Fishery Improvement Projects (FIP). In FY2013, Darden announced its second FIP commitment, this one involving the Honduras Spiny Lobster Fishery. We are collaborating on this effort with the National Fish and Wildlife Foundation and the Walton Family Foundation, creating a Fishery Improvement Fund for Honduras and beyond.

Darden’s Food Basket


What’s NextWhile Darden is proud of the progress through FY2013, we know there is more work to be done. In the coming year, our key areas of focus will be:

• Updating Our Citizenship Strategy: Darden is taking a more comprehensive approach to managing citizenship, starting by uniting our community, sustainability and diversity functions into an integrated Citizenship group. We began a materiality process in 2013 to help identify the most important citizenship issues for our company and our stakeholders. We will then prioritize the actions where we can have the most significant impact. Findings from this effort will help us establish a set of 2020 citizenship goals to drive continuous improvement.

• Citizenship Reporting and Communications: Darden will publish its next comprehensive Citizenship Report by the end of 2014. We also continue to invest in communication platforms for citizenship, using our Darden Digest blog, and social media channels to share timely information with all stakeholders, especially our employees.

• 15x15 Over Zero Goals: We continue to focus on our goals to reduce per restaurant energy and water use by 15% by 2015 and, over time, send zero waste to landfill. Our key priorities are to better understand and address our water use trend and identify opportunities to make the additional energy efficiency improvements needed to reach our goal. We will also look to apply the lessons from organic recycling pilots in early 2014 to reduce waste.

• Build an Integrated Supplier Management System: We are working to develop and implement a supplier sustainability management system. The goal is to enable Darden to better understand the sustainability footprint of our supply chain and allow us to evaluate and engage with our suppliers with the aim of continuous improvement.

• Investing in Fishery Improvements: In 2011, Darden announced a commitment to support a series of Fishery Improvement Projects (FIP). We are engaged in our second FIP, located in Honduras, and are working to create a mechanism to increase private sector investments in the project.

Citizenship

For the most current updates on Darden Citizenship, please visit:

www.Darden.com/sustainability

Darden.com/blog

Facebook.com/DardenCitizen

@Darden_News

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