FIN 650: GENERAL MILLS (ESG)
General Mills, Inc happens to be one of the few U.S companies to spot in the “A” list for sustainability.
They take their concerns towards making the planet a better place very seriously. For that, this food
company intend to collaborate with farmers, organizations and communities to make change across the
entire system, and inspiring others to do the same.
ENVIRONMENTAL
Operating as a global food company, General Mills has a multifaceted approach to sustainability.
Focusing on these main areas: GHG emissions, energy use, water withdrawal and waste reduction.
According to General Mills’ sustainability report, in 2021, their GHG emissions footprint increased 2%
compared to than 2020 (Figure 1). This reflects business growth during the year as General Mills
increased production to make food the world needed during the pandemic and company-wide net sales
increased 3%.
(Figure 1)
By recognizing the need to accelerate the company’s progress in reducing emissions, General Mills is
working to advance their internal carbon focus from footprint accounting to decarbonization strategies
and execution. Including that, they also believe by the year 2030, there will be progress in reductions in
sourcing 100% renewable electricity for global operations, water stewardship plans for the most-at-risk
watersheds by 2025, and achieve 100% recyclable packaging.
SOCIAL
In the face of COVID-19 pandemic, General Mills pledges to create a seat at the table for all employees
by fostering a safe, inclusive, and rewarding workplace, and seeks to make a positive impact with its
people and its communities. So, in 2021 the General Mills took some extra steps to provide their
employees the safest workplace with look after at their health and mental well-being. 86% of General
Mills employees say that the company is a great place to work, up from 6% in 2019.
(Figure 2)
(Figure 3)
Since the 1970s, General Mills have been hiring female positions and encouraging women
empowerment in the workplace ever since. In Figure 2, it clearly indicates how General Mills
maintaining equality between men and women in terms salaries and managerial positions. Also, they
believe it is very important to acquire talent for leadership roles from all over the world that’s why
there’s a wide racial diversity in their workforce (Figure 3). Additionally, General Mills has launched an
Allyship Program to take intentional action, like listening, learning and uplifting individuals and
communities who have been marginalized or overlooked in 2019.
GOVERNANCE
(Figure 4)
Board of Directors: General Mills’ BoD has twelve members possessing knowledge and experience from
various relevant fields strengthening the company’s position for future challenges and opportunities
(Figure 4). 42% of the board members are women, a gender ratio which we think can be improved in the
upcoming years. (Figure 2)
Remuneration: Remuneration is regulated by an internal policy which dictates the fixed and variable
components. The average General Mills salary ranges from approximately $32,926 per year for
Receptionist to $174,600 per year for Senior Research Manager. Average General Mills hourly pay
ranges from approximately $10.50 per hour for Packer/Shipper to $35.70 per hour for Electrical
Technician. We consider the fact that General Mills publishes annual remuneration reports as positive
and employees tend to have a satisfaction (Figure 5).
(Figure 5)
Shareholders: General Mills enjoys a diversified base of institutional shareholders. The company’s free
float accounts for 611.81 million of outstanding shares. This majority interest is a greater percentage
than is typical for companies in the Food: Major Diversified industry and highlights that the smart money
sees this stock as an important holding.