1st March 2022

To our stakeholders:

I am pleased to confirm that Pilgrim's Pride Ltd reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours

Ivan Siqueria
President Pilgrim's Pride Ltd.

At Pilgrim's UK, we are committed to ensuring that our supply chains are sustainable and that every worker is treated fairly. We do this through a series of policies, public commitments and company targets. This includes our Modern Slavery Policy, which seeks to improve our overall ethical performance, and our Ethical & Human Rights Policy, which involves a thorough audit of our supply chain and our supply chain partners, to tackle any instances of modern slavery. Our Supplier Code of Conduct also ensures our suppliers agree to meet or exceed our high standards when it comes to conducting business with Pilgrim's UK on issues such as equal employment opportunity, health and safety, anti-corruption and business integrity.

Rachel Baldwin, Vice President, Human Resources, is our executive-level sponsor for Human Rights, and is supported by strict governance on work in this area, led by a cross-functional committee .

The business also sets individual employee KPIs within Human Rights, to ensure it is embedded within day-to-day business operations.

In 2021, Pilgrim's UK conducted a thorough Human Rights Assesment, which sets out our programme in mapping all potential modern slavery risks related to the business and our supply chain, the steps taken to tackle these and how the business is looking to go even further. Our partnership with the Food Network for Ethical Trade and the Modern Slavery Intelligence Network supports these efforts in bringing our customers and suppliers on board.

At a site-level, all of our sites are audited every two years to meet Sedex Members Ethical Trade Audit (SEMTA) standards, and all of our suppliers with 30+ employees are onboarded to the Sedex platform, giving Pilgrim's UK full visibility of their own audits.

Our Ethical and Human Rights Policy, Modern Slavery Policy and Supplier Code of Conduct adhere to the Universal Declaration of Human rights and the United Nations Guiding Principles on Business and Human Rights. Our Ethical and Human Rights Policy, Modern Slavery Policy and Supplier Code of Conduct ensures we undertake human rights due diligence to ensure that we do not adversely impact any stakeholders.

The businesses Supplier Code of Conduct and Standard Supplier Terms and Conditions hold all of our supply chain partners accountable for meeting human rights standards and address any negative human rights impacts related to their business.

Last year, we conducted a full Human Rights risk assessment of our supply chain, which highlighted our salient risks as Modern SLavery, Forced Labour, respect of labour rights and laws, worker voice and gender inequality. We have KPI's set to tackle these areas. Also during the year 11 of our sites undertook SMETA audits. We also require all of our suppliers who emply more than 30 people, to have a valid Sedex audit undertaken within the last 2 years.

We are also working in partnership with Waitrose and Co-Op to undertake a Human Rights Impact Assessment in our Outdoor Bred Pork Supply Chain and Lamb Supply Chain. This is being carried out by Impactt Ltd, using the Danish Institute of Human Rights framework which reference ILO Core Conventions, ETI Base Code and United Nation Guiding Principles. The results of this will be published on our website in early 2022 and an action plan will be developed and help to guide our work for the future.

During early 2022 we will publish the results of our Human Rights Impact Assessment. We have also implemented various measures to ensure we're upholding the standards within our Human Rights policies. For example we're continuing to roll-out unannounced worker welfare audits across all of our sites. We've also developed a 'mystery shopper' programme with our principal labour provider to test processes and procedures that are in place to uncover victims of exploitation and modern slavery. We're also training our procurement teams so that they understand their role in protecting Human Rights and preventing issues of Modern Slavery.

All of our sites operate a grievance policy, have suggestion boxes to ensure we're opening confidential channels of communication, and committees to ensure policies are adhered to. We also have a whistle blowing line that is open to any workers or stakeholders within our supply chain to raise issues and grievances. Our Stronger Together helpline, a multi-stakeholder initiative aiming to reduce modern slavery, is also displayed on posters on site.

As well as ongoing training programmes, our colleagues are introduced to our Human Rights principals upon induction, with tips and guidance of what to look out for on the factory floor. The ETI Base Code - an internationally recognised code of labour practice - is also displayed at each of our sites as a reminder to all colleagues.

We have also developed an awareness training for our farming community on labour exploitation and Modern Slavery. Our supervisors and managers within the business also received extra mandatory training on spotting the signs of Modern Slavery.

We're working closely with our stakeholders and third party providers to ensure a robust, joined-up approach to tackling Human Rights. For example, we are currently undertaking a Human Rights Impact Assessment in our Outdoor Bred Pork Supply Chain and our Lamb Supply Chain. We will be publishing the results of this in early 2022, together with an action plan to involve all stakeholders. We also collaborate with other suppliers and retailer customers as members of FNET, working pro-actively with victims of Modern Slavery through the Bright Future scheme, which offers paid work placements and non-competitive interviews for roles within Pilgrims.

Pilgrim's UK employ a Human Rights Manager, who is directly responsible for protection of Human Rights on a day-to-day basis. The Human Rights Manager is supported by the wider HR Team and other cross-functional roles such as Sustainability and Procurement. We also have an executive-level sponsor, Rachel Baldwin, Vice President, Human Resources. Work in this area is supported by the cross functional Responsible Business Team, which governs the structure and targets for the year.

At Pilgrim's UK, we are committed to ensuring that our supply chains are sustainable and that every worker is treated fairly. We do this through a series of policies, public commitments and company targets. This includes our Modern Slavery Policy, which seeks to improve our overall ethical performance, and our Ethical & Human Rights Policy, which involves a thorough audit of our supply chain and our supply chain partners, to tackle any instances of modern slavery. Our Supplier Code of Conduct also ensures our suppliers agree to meet or exceed our high standards when it comes to conducting business with Pilgrim's UK on issues such as equal employment opportunity, health and safety, anti-corruption and business integrity.

Rachel Baldwin, Vice President, Human Resources, is our executive-level sponsor for Human Rights, and is supported by strict governance on work in this area, led by a cross-functional committee . We also set and report on targets in our Modern Slavery report annually.

Following our Human Rights Risk Assessment in 2021, we have updated and implemented Modern Slavery training for supervisors and managers. We've also implemented self-assessments within our Outdoor Bred farming supply chain.

We have increased our Stronger Together Reporting Tool score, which enables companies to track their progress on Modern Slavery issues , from 80% to 84% thanks to our focus on remediation and our policies and procedures to support victims of Modern Slavery. We are also part of a pilot project to improve data sharing on labour exploitation and modern slavery, MSIN (Modern Slavery Intelligence Network). Since the latest Assessment, we've conducted a total of 14 unannounced worker welfare audits across our sites.

Any Human Rights violation is investigated by our Human Rights Manager. Further investigations may also be carried in partnership with labour providers and/or external law enforcement agencies. Where infringements are identified we work through the UN Guiding Principles to remediate those issues. We may also partner with other NGO's to change any working practices, where appropriate, and to implement corrective measures.

Over the past year, the business has incurred zero fines / legal cases related to Human Rights. Any potential cases that were detected were fully investigated and required no remediation.

Our Human Rights work is reviewed annually by the the Responsible Business Group and is monitored throughout the year by the Human Rights Manager. Where needed, issues are raised to the Executive Committee and to the CEO.

All of our sites are subject to bi-annual SMETA audits. Eleven audits were carried out in the last year, and we are currently working on our latest Human Rights Impact Assessment in partnership with our customers, Waitrose and Co-Op. This is carried out by Impactt Ltd and involves interviews with colleagues at our sites and sites throughout our supply chain. We also carry out internal audits on our labour providers bi-annually.

Pilgrim's UK regularly assesses labour risks within our business. Current risks emanate from the use of agency labour across our sites to supplement our own workforce, use of the Seasonal Workers Scheme and direct recruitment from overseas via the Skilled Worker visa scheme. All workers are covered by our Ethical and Human Rights Policy, Anti Corruption and Bribery Policy, Equal Opportunities Policy, Whistle Blower Policy, Grievance Policy, Bullying and Harassment Policy.

All our policies refer to the relevant ILO Core Conventions. We are also members of the Responsible Recruitment Toolkit. Our Ethical and Human Rights Policy is aligned to the ETI Base Code and we are founder members of FNET (Food Network for Ethical Trade) and MSIN (Modern Slavery Information Network)

Pilgrim's UK has comprehensive Ethical & Human Rights and Modern Slavery policies.

Employees are made aware of their rights, responsibilities, compensation and benefits through our employee handbook and employee's individual contracts.

All business partners and suppliers are required to comply with our Ethical and Human Rights Policy, Modern Slavery Policy and Supplier Code of Conduct, which are in turn alligned to Global Compact Principles.

The main risks associated with labour are: 1) Modern Slavery and Forced Labour in all countries we operate in, mainly UK. 2) Respect of labour rights and laws in some countries where we source ingredients 3) Worker Voice - workers being able to voice and deal with grievances

Over the next year we will:
Publish the results of our Human Rights Impact Assessment and the subsequent action plan.
Continue to develop a Modern Slavery Response Framework in conjunction with the Slave Free Alliance. This will increase capacity for support of victims of Modern Slavery within the business.
Continue our programme of unannounced worker welfare audits across our sites.
Develop a mystery shopper programme with our key labour provider to test processes and procedures which are in place to uncover victims of exploitation and modern slavery.
Train of our procurement team on their impact in Modern Slavery and Human Rights issues.
Work to develop a scheme to employ and support refugees.

We have continued our programme of unannounced worker welfare audits across our sites.
We have training in place for manager and supervisors on spotting the signs of Modern Slavery. We also have a programme of unannounced welfare audits to talk to workers and uncover and resolve any issues raised as well as audits of our labour providers and other service providers.
Sedex audits are carried out at our sites on a bi-annual basis in addition to audits carried out by other customers, for example McDonalds.

All of site operate a grievance policy, have suggestion boxes and worker committees. We also have a whistle blowing line that is open to any workers or stakeholders within our supply chain to raise issues and grievances

All employees undertake a basic outline of the ETI Base Code and its relevance to them during induction. They also receive training on Modern Slavery and what to look out for when working on our sites. We also display the ETI Base Code at all of our sites. We have a whistle blowing line we advertise in all of our sites as well as posters for the Stronger Together helpline. All supervisors and managers also undertake further online training on spotting the signs of Modern Slavery and what action to take and we have developed awareness training for our farming community on labour exploitation and Modern Slavery. All employees receive dignity at work training together with training in Pilgrim's core values.

We have a comprehensive H&S policy, which is owned at a site level by the H&S Managers. Training is given in H&S from Day 1 and Pilgrim's UK's business mindest that Safety is Condition. KPI's are set and monitored for each site and at a group level. All of our site are audited and certified to ISO 14001/45001 with action plans for improvement in place.

We have comprehensive Discrimination and Equal Opportunities policies. We also report annually on our Gender Pay Gap, in line with UK legislation for companies with more than 250 employees.

We have trade unions present on sites with full consultation processes. Where trade unions are not present we operate works councils.

Labour Rights are a core responsibility of our Executive Team through our Vice President, Human Resources. We also have HR Managers for each site and a Senior HR Group Team. Responsibility for our supply chains lies with the Human Rights Manager.

Policies in place include:
Ethical and Human Rights Policy, Anti Corruption and Bribery Policy, Equal Opportunities Policy, Whistle Blower Policy, Grievance Policy, Bullying and Harassment policy

We have KPIs and indicators that are monitored by the HR function of the business. Work in this area is also governed by the Responsible Business Group.

During the year we have completed our first questionnaire via the Social Mobility Pledge. We also report annually on our gender pay gap. We are reviewing the diversity information we collect and the plans we have in place to improve this across our sites.

Any potential violations are investigated by the Pilgrim's UK HR Senior Team or Human Rights Manager. Further investigations may also be carried out in partnership with labour providers and/or external law enforcement agencies. Where infringements are found we work through the UN Guiding Principles to remediate those issues. We may also partner with other NGO's to ensure the remediation is full and, where appropriate, change our working practices to ensure this is not repeated.

There have been no legal cases, rulings or fines in this year related to Human Rights. Concerns were raised during the year at 6 of our sites. All of these were fully investigated and none were found to need remediation other than localised minor issues.

Polices are subject to review at least every 2 years. KPI's are reviewed and reported on annually.

During the past year we have carried out a Human Rights Risk Assessment. We have also updated our Modern Slavery Training for Supervisors and Managers.
A worker welfare self assessment programme was carried out in our Outdoor Bred Farming supply chain and awareness training on Modern Slavery has also been rolled out within our farming supply chain.
A pilot project of MSIN has been set up and external funding has been sourced under Project Fair Life.
We undertook 14 unannounced worker welfare audits across our site portfolio.
These measures have seen our score in our Stronger Together reporting tool increase to 84%.

All sites are subject to SMETA audits on a bi-annual basis.

Our combined Safety, Health and Environmental (SHE) Policy sets out our commitment to ensuring all our Environmental Risks and opportunities are identified and controlled.

Each of our sites across the UK have identified their own individual impacts, and maintain an individual register to measure and track this.

Our company policy is jointly signed by our CEO and each of our site directors, and outlines our commitment and management of environmental risk.

Our rigorous audit process identifies the needs and expectations of all interested parties, including our business partners and suppliers.

Pilgrim's UK plans to reduce water, gas and electric consumption by 5% YOY, expand onsite renewable energy generation capacity- and reduce general waste by 10% YOY.

All of Pilgrim's UK's sites have a dedicated Safety, Health & Environmental (SHE) manager, who are trained in environmental protection and management. In addition to this, we also have three regional SHE managers overseeing all of our sites as a wider group sustainability team to support them, and run regular spill kit training programmes at each of our sites.

Our SHE managers have received Institute for Environmental Management & Assessment (IEMA) training and we hold site awareness training for all of our staff on specifically high risk tasks.

We've invested in multiple projects to improve the energy efficiency of our operations and source electricity from renewable sources, including the use of solar panels and LED lighting. Using sub metering we are identifying where we can reduce our energy consumption elsewhere.

We're constantly trying to build on our operational efficiency, with regular reviews of new technical improvements to processes.

We conduct Life Cycle Assessments on our highest risk products, and engage with key suppliers on foot printing processes.

We employ integrated processes, risk, and audits (IMS) across both our health & safety management and environmental management systems which are certificated to ISO 45001 and 14001 standards.

At Pilgrim's UK we have three SHE managers, 16 site group SHE managers alongside our Vide President of HR and a group sustainability team all involved in environment monitoring and performance.

Pilgrim's UK conducts first party audits and second party audits across all its sites and has been involved in rigorous external audits which led to our operations receiving ISO 45001 and 14001 certifications.

Pilgrim's UK deals with emergency incidents as outlined in its management system and depends on the statutory reporting requirement.

Pilgrim's UK always operates in line with the Global Compact environmental principles and has no legal cases and rulings to report.

We've recently been awarded two new ISO certifications (45001 and 14001) for our Safety, Health and Environmental Management Systems. Various Capex approvals have also been awarded for projects across Pilgrim's UK.

Periodic management reviews are conducted as a group and also by each of our sites to monitor our environmental impact.

We've recently been awarded two new ISO certifications (45001 and 14001) for our Safety, Health and Environmental Management Systems. The accreditation followed over a years’ worth of external audits by Bureau Veritas, covering all sites across Pilgrim’s UK network over a minimum of two days per site.

Pilgrim's UK has a compliance programme with a focus on Anti-Bribery and Corruption. As part of the compliance programme, Pilgrim's UK has implemented an Anti-Bribery and Corruption Policy, online training, automated process for approval of gifts and hospitality reporting, monthly reporting to the Executive Team on gifts and hospitality expenditure and an Ethics/Whistleblowing Hotline and policy. Pilgrim's UK is committed to 100% compliance with its Anti-Bribery and Corruption Policy.

Pilgrim's UK predominantly supplies to customers based in the UK and Republic of Ireland and these are assessed to be low risk. Approximately 90% of international sales are to China, however, to mitigate any risk these are usually made to customers with whom Pilgrim's UK has a long established relationship.

Pilgrim's UK has an Anti-Bribery and Corruption Policy which includes a commitment to zero tolerance for corruption, bribery and extortion.

Pilgrim's UK's commitment to the UN Global Compact is referenced in our Supplier Code of Conduct (available on www.pilgrimsuk.com) and in addition there is a statement of support from the CEO on our UN Global Compact Profile.

In 2020, Pilgrim's UK implemented a Code of Conduct and Ethics for all employees. The Code of Conduct includes (but is not limited to) information on the following topics: Anti-bribery and Corruption; Gifts & Entertainment; Raising Questions and Concerns and Ethics Hotline. All employees are given training on the Code of Conduct and Ethics as part of their induction programme.

Pilgrim's UK has a Supplier Code of Conduct which sets out minimum requirements on anti-corruption for all suppliers. This includes a requirement for suppliers to have their own anti-corruption policy covering corruption, including extortion, bribery or any type of fraudulent business practice. In addition, Pilgrim's UK standard terms and conditions for suppliers, require supplier's to comply with Pilgrim's UK policies on anti-bribery and corruption.

Pilgrim's UK is committed to 100% compliance with its Anti-Bribery and Corruption Policy.

Following the launch of a new system for seeking approval of Gifts & Hospitality, Pilgrim's UK will report monthly to the Executive Team on hospitality given/received with customers/suppliers and key customers. In addition, Pilgrim's UK is working to align its gifts and hospitality approval process to its expenses system. Pilgrim's UK will continue with its training programme for anti-bribery and anti-corruption in line with Pilgrim's Pride Corporation (our USA parent company) ("PPC").

Pilgrim's UK has implemented a whistleblowing line. This is managed externally by Navex Global. Individuals can report anonymously either by telephone or via a web portal.

All eligible employees are required to complete online training on Anti-Bribery and Corruption with a focus on the UK Bribery Act 2010. Online training is then repeated once every 12 months. Pilgrim's UK has launched an online process for approval of Gifts & Hospitality involving third parties. As part of the launch of the new system, training was given to the Exec Team and Leadership Team on gifts and hospitality reporting. User guidance and videos are also available on the Pilgrim's UK intranet.

The Legal Department and Code Compliance Officer have overall responsibility for anti-corruption.

Pilgrim's UK monitors compliance with our online training programme and gifts and hospitality reporting on a monthly basis.

Any incidents reported via the Whistleblowing line are notified to the VP HR and Senior HR Manager. Depending on the nature of the matter, Pilgrim's Pride Corporation (Pilgrim's UK parent company) may be involved in the investigation or it may be undertaken by senior members of Pilgrim's UK for further investigation. The Whistleblowing Policy protects individuals from suffering any detriment as a result of a whistleblowing report.

Compliance with the anti corruption policy is reported monthly to Pilgrim's UK Executive Team. Pilgrim's UK is working to align its gifts and hospitality approval process to its expenses system as part of internal audit testing.

There are no current investigations, legal cases, rulings, fines or other relevant events related to corruption and bribery.

An updated anti corruption policy was launched in November 2021. We have have also automated our gifts and hospitality approval and reporting process and rolled out online training to employees.

There are currently no external audits of our anti-corruption programmes. Pilgrim's UK has completed compliance due diligence questionnaires for key customers (with specific questions on anti-bribery and corruption).