Our Commitment to the Environment We are committed to responsible environmental, health and safety management.

We aim to look after the health and safety of our people and minimize the environmental impact of our business around the world. Induri Factory helps provide Safe Drinking Water to 11,000 villagers In May 2011 with support from Induri Factory a water scheme was inaugurated in Induri village. With a storage capacity of 1.5 lakhs litres, the new water scheme will provide safe drinking water to over 11000 villagers. The development of the new water scheme began in 2005-2006. Induri village is situated on the banks of the Indrani River, which serves all its water requirements. Water from the river is conserved in a water scheme and pumped to the Induri village. The existing water scheme, however, was unable to provide sufficient and safe drinking water to Induri village with its growing needs and population. Hence a need was felt for a comprehensive water scheme to meet the water requirements of the village. While under the existing Rural Water Scheme, the government would fund 90% of the upgradation, the residents of Induri village were expected to raise the remaining 10%. Given Cadbury Indias long association of community development in Induri village, we offered our support, funding over 50% of the remaining budget. Recognizing the importance of safe drinking water for the village residents, we also helped build a filtration system in the water scheme.

Migratory birds stop over at our Bangalore factory! Water is a precious resource. As part of Cadbury India's efforts to continuously increase water conservation our Bangalore factory has constructed a check dam to store the rainwater. This dam not only acts as a major ground water replenishing source for the bore wells in the factories and surrounding community, but is also a stopover location for some of the migratory birds!

Sustainability Making a Sustainable Difference in Our World Sustainability is about preserving our world -- land, air, water and people. At Kraft Foods, our sustainability journey has put us on a path that is making a real difference.

But, we cant do everything. So were focusing on those areas where we can have the greatest impact and that mean the most to our business performance. Thousands of Kraft Foods employees around the world help us deliver on our commitments in six focus areas: agricultural commodities, packaging, energy, water, waste, and transportation/distribution. Through Better World you can see how were doing. Sowing Our Future through Sustainable Agriculture From cookies to crackers, from chocolates to nuts and from cheese to coffee, our business depends on farm products. Thats why we support sustainable farming projects. Its good for our business, helps the environment and can improve the lives of local farmers. Nourishing Our Agricultural Supply Chain Nearly 40 percent of the earths land is used for farming. Thats more land used for farming than any other human activity. Kraft Foods business uses a steady supply of farm products, like coffee, cocoa, cashews, sugar, dairy products, wheat and vegetable oil. We are looking at ways to encourage more sustainable farming practices for a number of our raw materials. Promoting sustainable farming practices can result in quality raw materials, while also helping to protect and improve the environment and the social and economic conditions of local communities. In fact, more investment from both the public and private sector will help break the cycle of hunger and poverty in rural communities in the developing world. Promoting sustainable farming supports biodiversity and causes less water pollution and soil erosion. Additionally, sustainable agriculture generally helps farmers and their families earn decent wages and improve their housing; opens more educational opportunities; and can lead to a better quality of life. Our current efforts to promote sustainable farming focus on developing countries in Africa, Latin America and South Asia. These are areas where we feel we can have a meaningful impact with commodities such as coffee, cocoa and cashews. To have an impact, we work closely with industry, governments and non-governmental organizations. Improvements don't happen overnight, but weve made some good progress. And well continue to work with our many valued partners to continue to make change happen. Reducing Our Environmental Impact We only have one planet. So all of us need to work together and find ways to use less energy, water and other resources and reduce the waste we generate. Were working on our part. Environmental Policy Kraft Foods Environmental Policy

Kraft Foods is committed to reducing the environmental impact of our activities, preventing pollution and promoting the sustainability of the natural resources upon which we depend, while providing quality products that meet the needs of our consumers. We also are committed to the continuous improvement of our environmental performance and to meeting or exceeding the requirements of all applicable environmental laws and regulations. We expect all Kraft Foods employees to carry out their job responsibilities in accordance with this policy and to report any environmental concerns they have to management. Addressing Climate Change When it comes to climate change, there is no shortage of ideas on how to tackle the issue. We have a point of view and we want to make a difference. Reducing our impact on climate change External experts have stated and you may have heard: The climate of our earth is changing. The planet is getting warmer. Sea levels are rising. Weather patterns are shifting. The planets natural resources are being depleted faster than they can be replenished. Clean water and fertile, arable land are becoming particularly constrained. There are many points of view and perspectives on how to tackle a complex issue like climate change. Everyone needs to contribute -- governments. businesses and individuals. At Kraft Foods we know we have a role to play and that we can have a meaningful impact. We communicate our strategy on climate change through the Carbon Disclosure Project (CDP). You can review our submissions from 2004 to 2008 on the CDP site. Visit our Better World site for an overview of how our sustainability strategy helps us reduce our impact on climate change.