CSR Report 2018 Raising the bar Contents
CEO foreword: Raising the bar 3 CSR performance overview 4 Our CSR ambitions 5 Our purpose 6 Our CSR ambitions 7 Our value chain 8 Our governance 9 Working together 10 Stakeholders: reporting on what matters 11 Operating in a changing world 12 About this report 13 Our CSR performance 14 Sustainable agriculture 15
Environmental performance: energy, CO2 & water 18 Health and safety 21 Product responsibility: quality & circularity 23
2 As a family owned business, we take our social and Message from the environmental responsibility serious. In order to safeguard the well-being of future generations, we set a new standard CEO: raising the bar in sustainability for ourselves and in our supply chain.
Our renewed CSR strategy raises the bar and sets the ambitions higher than everOperate before.circular Holland Malt is committed to:
Source 100% Create a 100% safe Operate circular by sustainable Reduce 35% CO2 barley in 2025 work environment emissions by 2025 50% in 2025 and by in 2025 and 70% by 2030 100% in 2030
We have been dedicated to sustainability for years, but we have now made our ambitions concrete, measurable and focused on creating positive impact in our supply chain. We cannot do this alone: cooperation is key. To this end we aim to establish partnerships with both ends of the chain. Always eying to create a win-win. We will also strengthen and enlarge our current ones, such as the sustainable barley projects.
We are a strong supporter of the UN’s Sustainable Development Goals (SDGs) and the Paris Climate Agreement. We believe that the world needs collective action to tackle the world’s most pressing problems.
Looking back, 2018 was a year to be proud of. Proud of the hard work that resulted in a record malt production and turnover. My personal highlight of 2018 was the opening of the new malting plant in Eemshaven. With the innovative energy and heat sharing system, we reduced CO2 emissions, while simultaneously doubling our capacities in Eemshaven to meet the growing demand.
In January 2019 we also celebrated the second year without safety incidents (LTI) in Lieshout maltings! A great result of the ‘BeSafe awareness programme’. We are fully committed to continue on this road and hope to have a third year without safety incidents.
In this report we show how we walk the talk: the results we achieved so far, our next steps and our long-term ambitions. Jos Jennissen, CEO Holland Malt I end this letter by expressing my gratitude to our customers, partners and stakeholders. I am looking forward to working with all of you in 2019 towards a sustainable supply chain and circular economy. 3 CSR Performance
Sustainable Agriculture Health & Safety Environmental Performance Product Responsibility 0
2 0 3 90,5% increase of LTA Fatalities 193 kg CO2 per 3 m water Zero recalls 100% positive sustainably We did not only grow ton malt per ton malt results on external sourced barley in quantity, The amount of LTA quality audits but also in quality: (accidents resulting in absence from work ) In 2018 we nearly 63% was SAI stayed the same Both increased as opposed to last year due Your quality in our hands, we are happy to once again doubled the volume Silver or higher. compared to 2017. We to temporarily inefficiencies as a result of deliver excellence. All external audits have been compared to 2017. In 2017 this was 43%. aim to reduce this in 2019. the start-up of the new malting towers. succesful, most of them with the highest ranking.
4 Our CSR ambitions 5 Our Purpose Holland Malt delivers high quality malt at all times. We are Your quality in our hands. Holland Malt was founded over 100 years ago with the purpose to deliver quality a family owned business. We malt at all times, now and for future generations. This purpose is still at the heart of Holland Malt, but the world work hard every day to reduce around us has changed. We have always been fully aware of our social and environmental responsibility, but our environmental impact in since climate and resource scarcity are getting more urgent, we raised the bar with our new CSR commitments. Purpose our production, create a safe work environment and take responsibility for our product and in our supply chain to safeguard the well-being of future generations. ambitions 6 CSR CSR Our CSR ambitions
We have been dedicated to sustainability for years and as a consequent step towards a sustainable business model, we have set concrete, measurable ambitions that focus on creating positive impact within our supply chain. With ambitions higher than ever before, we raise the bar and set a new standard in sustainability for ourselves and in the sector.
We decided to concentrate our efforts on issues where we can create the highest impact for society: • Sustainable agriculture • Environmental performance • Health and safety • Product responsibility Sustainable agriculture Health & Safety These four pillars form the basis of our reporting and CSR strategy. For each Source 100% sustainable Create a 100% safe work pillar we will share our activities and we will monitor our progress by KPIs. In barley in 2025 environment in 2025 the chapter ‘Our CSR Performance’ we explain in detail our results and the CSR Ambitions impact we are seeking to make with our partners. Product responsibility Environmental Operate circular by 50% in performance
We have set our ambitions on sustainability and circularity high in order to 2025 and by 100% in 2030 Reduce 35% CO2 emissions take our responsibility in creating the change that the world needs. All of our by 2025 and 70% by 2030 commitments have a wider impact on our value chain and benefit famers, employees, clients, consumers and our environment:
• Source 100% sustainable barley in 2025 • Create a 100% safe work environment in 2025
• Reduce 35% CO2 emissions by 2025 and 70% by 2030 • Operate 50% circular in 2025 and 100% by 2030
We place our efforts in a broader perspective and align our ambitions to the UN Sustainable Development Goals (SDG’s). As shown in the visualisation to the right, each of the four pillars and ambitions contributes to a specific SDG. These are the SDG’s where we can create the highest impact.
ambitions 77 CSR CSR Value Chain
Our value chain is straight forward and transparent. It ranges from ‘Barley to Beer’. At the moment, most of our CSR activities take place in our own operations, but we increase the impact of our efforts by working together with our suppliers and clients. For example, in transport: to keep logistics efficient and to reduce transport we have our barley delivered directly from the farm to our plants.
As a malt company, we transport and store grains and produce malt for use in beverages and food. We supply the malt to brewers and distillers all over the world.
Agriculture: farmer and Malting Brewing raw materials Transport Transport ambitions 8 CSR CSR Managing Board Our governance General & Commercial, finance & production
We take CSR seriously, that is why it is the responsibility of our CEO Production Quality & Commercial Jos Jennissen. He ensures effective governance and guarantees the Manager Tecnology Affairs most attention is given to the implementation of our refined CSR strategy. He ensures that important topics are addressed and he also participates in many stakeholder discussions. Furthermore, he Production Production takes part in internal initiatives and activities regarding sustainable Lieshout Eemshaven employability and guarantees that our people work in a productive, motivated and healthy way. Silo Manager Silo Manager Process Process technologist technologist To support Jos Jennissen on a tactical and operational level, Martijn van Iersel, our Manager Quality & Technology, takes care Malting Technical Malting Technical Housekeeping Housekeeping of the proper implementation of all CSR activities. Our Production Operators Service Operators Service Managers in Lieshout and Eemshaven maltings are responsible for plant-related CSR matters (i.e. for energy, HR and purchase decisions). Our CSR governance is not restricted to the boardroom level or an isolated staff department: it is vertically embedded in the organisation and responsibilities are given to those functions that have the largest impact and influence on specific actions and outcomes. Below you can find the organogram of our organisation.
CSR is also part of our company management system. To continuously improve our quality and ensure food safety, we have set up our management system according to ISO 9001 and are ISO 22000 certified. Our management system is also in accordance with ISO 14001, but is not certified as such.
A responsive attitude towards complaints and suggestions for improvement is crucial to us. We take all complaints very seriously, investigate each case thoroughly and find the best solution.
Finally, we enable all our employees to act in line with our principles. All employees sign our company code when they start their career with us.
By integrating CSR in our governance, management and reporting systems, we are structurally and continuously seeking to improve our processes and CSR performance. 9 CSR ambitions CSR Working together
10 Listening to our stakeholders
We want to engage in an active dialogue with all our key stakeholders: all parties that are impacted by our activities and all parties that can help us in realising our CSR ambitions. Our key stakeholders are: clients, customers, employees, farmers, shareholders and governmental & certification bodies.
Contract Checks
clients customers employees farmers shareholders governmental & certification bodies
We list all our key stakeholders, monitor how we are in contact with them, what the output of the engagement is and to what extent we take action based on their feedback. This way we ensure all voices are heard. Since 2014, we have had at least one conversation a year on the topic of CSR with all our important stakeholders.
An important discussion we had in 2018 was about the expiry of our environmental permit in Lieshout maltings. A new permit was issued based on new and important legislation changes. We believe it is important to develop a roadmap towards climate neutral malting together with legislative bodies.
11 Working together The food sector as a whole generates Operating in a changing world a lot of waste. However, in our value chain, ‘barley to beer’ waste Global megatrends have the potential to fundamentally change the production is limited. Consumer Reduce losses way society and our business operate. In order to make our business losses are relatively low compared Limited field losses of barley future proof, we assessed the potential impact of global megatrends to fruits and vegetables. Still, the that we believe can reshape our business. We will address the following circular economy is very relevant megatrends that we believe are, amongst others, crucial from a CSR for Holland Malt: one of the co- perspective: Reuse waste products of our production process Malt culms sold to is ‘malt culms’, which is currently the feed sector Durable products Climate Change sold to the feed sector. In 2018, we Beer has a long due date Climate Change is a global trend with a local impact. actively researched opportunities Rising temperatures and changes in rain patterns to upcycle our co-products. We will have an impact on agriculture. This can also aff ect provide more in-depth information Upcycle waste: Research on our co-products barley. Most of the barley we source grows in Western about this in the chapter ‘Product Europe. Holland Malt sources the largest share from Responsibility’. The Netherlands, France, UK, and Scandinavia. In most parts of Western Europe, barley is a rain fed crop but Energy transition has a relative strong resistance to warmth and drought. The transition from fossil-based energy sources to alternative energy sources is However, a lack of rain can have an impact on the quality of the barley. an important measurement to achieve the 80-95% reduction of CO2 emissions by 2050, which the EU committed to in the Paris Agreement. This transition In 2018, our barley sourcing regions were faced with a very dry and from fuels like natural gas, coal and oil is sometimes called decarbonisation. hot summer. We observe that our barley production is moving to Alternative energy sources are solar energy, wind energy, hydropower and many more northern areas. High quality barley produces high quality malt more. and, in return, the best beverages. Therefore, resilience is a benefi t for everyone in our value chain. Together with clients, we assessed the Malting is a heat intensive production process. We currently use natural gas and a small share potential impact of climate change on barley. Via initiatives, we work of biogas to generate this heat. Our long-term ambition is to reduce CO2 emissions by a 100% in with farmers and enable them to be adaptive (more about this in the 2030, meaning ZERO CO2 emissions! We believe that multiple sustainable energy sources will chapter on sustainable agriculture). Research and barley breeding are together provide the solution to decarbonise. In Lieshout maltings we are working on this issue also key in the solution to fi nd more drought or heat tolerant barley with Royal Swinkels Family Brewery. We are currently testing the potential of energy sourced varieties. from metal powder with a pilot from the University of Eindhoven. In Eemshaven maltings, we have investigated multiple scenarios to decarbonise our malting towers. These activities help Circular Economy to meet our ambitious goal of ZERO CO2 and will make our plant future proof. More on this in Millions of tonnes of waste are produced every single the chapter ‘Our Environmental Performance’. day. The circular economy strives to prevent products to turn into waste and seeks to eliminate the idea that new resources are needed to create economic grow. In a circular economy, raw materials are decoupled from economic growth and production processes are circular instead of linear. Natural gas Oil Coal Green energy 12 Working together About this report
This report covers Corporate Social Responsibility activities of Holland Malt during the period 1-1-2018 to 31-12-2018. We have two locations with production facilities in Lieshout and Eemshaven. All locations, including the head office, are included in the scope of this report.
The content and topics of this report are the result of many straightforward conversations we have had with our stakeholders. In the development process of this report, meetings were held with the CEO, CFO and the CSR/QT manager. Furthermore, interviews were held with selected stakeholders. These interviews are presented in the chapter ‘Our CSR Performance’.
Due to the fact that our maltings in Lieshout is located next to a brewery, some of the data of this production facility is being presented in the Sustainability Report of Royal Swinkels Family Brewers. In some situations, we have not been able to separate the data for the brewery and the malting tower. In those cases, we only report for the facility in Eemshaven. This is applicable for the waste data in this report. This data is marked with an asterisk *.
Data presented in this report and appendices are based on data from Holland Malt’s management systems and reports. KPMG has provided limited assurance on selected CSR indicators in the Royal Swinkels Family Brewers integrated annual report of 2018, which include CSR indicators for Holland Malt. Some of those data indicators are included in the section ‘environmental performance’ and ‘health and safety’.
The report has been drafted in line with the Global Reporting Initiative Standards (GRI). Specifically, the GRI Principles for Defining Report Content and for Defining Report Quality are incorporated in this report. However, we do not report ‘in accordance’ with the GRI. 13 Working together Our CSR Performance
14 Sustainable Agriculture Quantity Quality 70% 2017 63% 2018 Our business depends on the availability 60%(!" 57% of barley. No barley, no malt. The best barley provides the best malt, which in '!" 50% 46% 90,5% increase of return provides the best beer. To secure 63% SAI Silver 43% sustainably or higher a sustainable barley production, we sourced barley 40%&!" 37% work together with farmers, knowledge 31% institutions, breweries and distilleries. 30%%!"
Our performance 20%$!" We are committed to sustainable agriculture and are part of multiple platforms that certify and enable farmers. We are a member of the Sustainable Agriculture 10% Initiative (SAI) and Skylark Foundation. In addition, we are also involved in !"0 a few other local initiatives, such as ‘Farmer Beer Water’ at Lieshout maltings "*+,-./01/234*-5,6748*59*.5./3 $!#)"*+A?*+03B46*56*C0
15 Our CSR Performance Our CSR Sustainable Agriculture Initiative (SAI) We have been a member of the Sustainable Agriculture Initiative (SAI) Platform since 2013. The SAI Platform supports the development and global communications of sustainable agriculture, involving the various food chain stakeholders. It stimulates sustainable agricultural practices and agricultural production systems that preserve future availability of current resources and enhance their eff iciency. It is one of the most used and respected standards for sustainable agriculture.
In 2018, we supported one of our largest suppliers of barley by achieving a SAI benchmark. Together, we evaluated which steps would be needed to become SAI certifi ed and which level could be met; Bronze or Silver. Evaluating the benchmark helped us both in getting a deep understanding of the SAI code and moving towards even more sustainable practices. Our supplier scored silver level. This collaboration will help us to source 100% sustainable barley in 2025.
Farmer Beer Water The project ‘Farmer Beer Water’ operates in Laarbeek, a Dutch municipality where barley is grown and the brewery of Royal Swinkels Family and our malting tower are based. This project aims to ensure a good quality of the ground and surface water in the area with minimal drought damage for the farmers. ZLTO, a department of the Dutch Federation of Agriculture and Horticulture, an entrepreneurial and employers’ organisation, collaborates with Swinkels Family Brewers, Agrifi rm, the Rabobank, local farmers and other regional partners. Holland Malt is involved as a partner to educate farmers on how to secure the quality of the barley with minimal use of fertilisers in order to not have a negative impact on the ground water quality. In addition, we try to stimulate the local production of malting barley.
De Koningshoeven Brewery ‘De Koningshoeven’ is based in Berkel- Enschot (Netherlands) and is known for the Trappist beers named ‘La Trappe’. Koningshoeven is one of the few breweries that can produce under the label ‘Authentic Trappist Product’. This means that the beer is brewed under the supervision of monks and made within the immediate surroundings of the abbey. To reduce transport emissions, we have been managing a supply chain together since 2012, focusing on the regional production of malting barley for the various Trappist beers. 16 Our CSR Performance Our CSR De Koningshoeven Frans Wigchering - Agrifi rm farmer Brewery ‘De Koningshoeven’ is based in Berkel-Enschot (Netherlands) and is known Frans Wigchering lives in Oud Annerveen, a village in Drenthe. He is the 5th for the trappist beers named ‘La Trappe’. Koningshoeven is one of the few breweries generation of his family living and working on the same land. The farm was that can produce under the label ‘Authentic Trappist Product’ meaning that the beer is originally built in 1875 and has a long and rich history. It all started back when brewed under the supervision of monks made within the immediate surroundings of the Drenthe was a peat colony. During this time, Frans’ great-great-grandfather abbey. Together with this brewery we manage a supply chain focusing on the regional started with some cattle. Following in the foodsteps of his ancestors, Frans production of malting barley for the diff erent trappist beers, we have been doing this continued in building this into a large arable farm of 390 hectares where he since 2012. grows potatoes, sugar beets, onions, wheat and of course malting barley.
“We are part of Skylark, via Agrifi rm farmers co-operative we deliver malting barley to Holland Malt. The key benefi t of Skylark for me is the knowledge sharing with colleagues. Most arable farmers work solo. Via Skylark we come together each month with a group of 12 famers and a cultivation specialist. We meet at each other’s farms, because by sharing and seeing you learn most. You have to be very open and honest about your successes and failures, but this takes the group to a higher level. I believe this way of working together makes us much stronger than checking the box of a sustainability certifi cate checklist.”
Growing sustainable malting barley starts in the winter. Together with a crop specialist, we select the plots for the barley; we take soil samples to measure any potential defi cits. The crop is selected together with Holland Malt, for example some varieties need less water to grow and less energy to malt. From the sowing to the harvesting, a crop specialist is involved to look for any weeds or diseases. Monitoring is the fi rst step in a good protection of both biodiversity and the yields. For example, in 2018 our potato fi eld suff ered from Colorado beetles. We chose a specialised but much more expensive crop protector that only attacks the beetles, so that ladybugs, bees and lice would not be harmed. This brings benefi ts in the long term, because aft er the potato harvest, when the malting barley grows, ladybugs are a great natural protector of barley.
Another improvement we implemented based on the insights of the Skylark foundation is the timing of ‘green fertilizer’. The legal requirement for cover crop (green fertilizer) is to leave it on the land for 8 weeks. We leave it on much longer; this means that the fi eld is covered with ‘straw’ in the winter. You immediately see many more meadow birds, pheasants, hares and deer on the fi eld that enjoy this protection during the cold period. It also measurably improves the soil quality. 17 Our CSR Performance Our CSR Environmental performance:
3 193 kg CO2 3 m water per ton malt energy, CO2 and water per ton malt
Improving our water and energy eff iciency has long been a focus for us. Over the past 10 years we have taken signifi cant Our water usage decreased slightly. For 1,000 steps. 2018 has been an exceptional year for us, meaning that we have had a set back regarding output and eff iciency of kg malt we now use about 3 m3 of water. In
energy and CO2 emissions as a result of the start-up of the new malting towers. In terms of our commitment, we did take the entire value chain water is needed for a step in the right direction. We developed new targets for 2025 and 2030 and investigated ways to replace our natural the growth of barley, production of malt and gas usage with other renewable sources. brewing of beer. In this total value chain, the impact of water in malting is low compared Our performance to other steps. None-the-less we strive to
In 2018, our relative and absolute MJ and CO2 emissions increased signifi cantly mainly due to the opening of the new further decrease the water usage in future. malting towers in Eemshaven. We increased our capacity from 2 malting towers to 4 malting towers. This refl ects in the To achieve this we need to intensify the
total CO2 emissions. Our relative MJ usage and CO2 emissions increased due to the opening phase of the third and fourth collaboration with our clients. tower. Starting up a new facility requires many test-runs and small batch production. Heat loss occurs and the process becomes much more ineff icient. When we fi nally reached nearly full capacity in the Eemshaven beginning of 2019 our
relative MJ and CO2 decreased and showed a strong performance. Therefore, we are convinced that we are able to reduce our relative emissions in 2019.
2017 Energy Water 2018
70,000 3.5 64,649 3.1 3.0 (!" (!3.0" 3000(!" 2,874 60,000 2,687 2500'!" 250'!" 50,000'!" '!2.5" 46,405 2% 2000&!" 200&!" 193 40,000&!" &!2%" &!2.0" 175
1500%!" 150%!" 30,000%!" 1,5%%!" %!1.5"
1% 1000$!" 100$!" 20,000$!" $!1%" $!1.0"
500 50 10,000 0,5% 0.5
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Moving Towards Sustainable Energy in the Eemshaven The malting facility in the Eemshaven uses approximately the equivalent of 14,000 households worth of natural gas. It is essential to us to reduce gas extraction in Groningen as quickly as possible. Our ambition is to reduce
35% CO2 emissions by 2025 and 70% by 2030. Since port of Eemshaven is strong in the production of wind energy, electrifi cation of the malting process, and increasing the share of renewable energy such as wind energy is certainly a way forward.
Reducing Natural Gas Usage in Lieshout In 2018, Royal Swinkels Family Brewery entered a collaboration with Eindhoven University of Technology to fi nd a way to generate energy using iron powder, which would not generate any carbon dioxide at all.
Geothermal energy and connection to heat networks are promising opportunities for the future. In 2017, Royal Swinkels Family Brewery signed a declaration of intent for the development of geothermal energy in the province of Brabant. They were also involved with seismic research
in Lieshout in 2018. This would signifi cantly reduce CO2 emissions in our Lieshout maltings. So far, no fi nal decision on the feasibility of geothermal energy has been made. We will follow up on this process and hope to share more information.
19 Our CSR Performance Our CSR Interview with Marthijn Junggeburth - Program manager sustainability Marthijn Junggeburth started at Royal Swinkels Family Brewers in 1993. Marthijn coordinates many projects with impact on both Holland Malt and Royal Swinkels Family Brewers, such as the circularity strategy, the geothermal and iron powder project.
Holland Malt is an autonomous part of Royal Swinkels Family Brewers making its own choices. Sometimes both parties work together on environmental projects such as on the Lieshout plant. “Holland Malt’s CSR manager and I regularly take a moment to discuss upcoming issues and shared interests. Their malting towers are very close to our brewing and bottling facility. Over the past years we have set up some great projects. We now share the excess heat of the brewery that is generated during the
cooling process in their malting facility and by doing so we save a lot of energy and CO2 emissions. Looking forward, I see huge potential to optimise the heat sharing by fully connecting diff erent hot water fl ows. We now only use the excess heat of the cooling, but what about the heat from the brewing process? Malting occurs at 60-80 degrees Celsius, so there are many opportunities.
The situation for water is comparable. In Lieshout we pump water from a well. Water for beer is of the very best quality and meets certain criteria regarding the quantity of specifi c minerals that have a defi ning impact on the taste of beer. In Lieshout we installed a fi lter that enables us to allocate water that does not meet the brewing criteria. This water would otherwise be wasted, but by working with this allocations system this water is now used to clean the malting facility. A future opportunity that I see is reusing water and using eff luents from our wastewater treatment plant (WWTP) in Lieshout in the cleaning processes. However, reusing cleaned eff luents does not have a positive image within the food and beverage industry. Technically it is possible, but fi rst the people’s perceptions need to change before this step becomes feasible.
Royal Swinkels Family Brewers is committed to conduct 50% circular business by 2020. Energy and water are important aspects to reach this goal. We need to continue to innovate together and work on savings, eff iciency, reuse and green alternatives in order to meet this shared goal. The supply of sustainably produced malt is another important topic where we work together with Holland Malt. For the coming years Royal Swinkels Family Brewers has the ambition to source more SAI certifi ed sustainable malt. With this common ambition we can help barley cultivation to become more sustainable. 20 Our CSR Performance Our CSR BeSafe & Stop DuPont Health & Safety The BeSafe program was launched in Lieshout in 2017. The driving forces behind BeSafe are the Safety Champions, employees who set the right example and show High-quality employment conditions their colleagues how to spot unsafe situations and warn each other about them. Each and a healthy and safe working department now has at least one Safety Champion. environment are very important to 2 0 Holland Malt. We are proud to have very LTA Fatalities Together, they ensure direct reporting of hazardous situations. Safety Champions meet longstanding relationships with many of (2018) (2018) on a regular basis to share experiences and are supported by our company’s Safety our employees. Off ering opportunities Experts. This way we continuously improve our safety measurements. for continuous personal development and giving attention to ideas are key elements in our policy. We ensure a safe In Eemshaven we work together with the organisation DuPont. With more than 30 environment with measurements from our ‘Safety Master Plan’: we eliminate years of experience in the fi eld of safety, they work with tested principles that we have industry risks, educate workers, provide and repeat safety trainings and obligate incorporated as rules on our malting site: personal protection equipment.
Our performance In 2018 we continued our strong safety performance. Two incidents occurred I have the prescribed Personal Protective Equipment (PPE) at Eemshaven maltings. To reduce incidents in the future, we will provide more training to our employees via the safety trainings of Stop DuPont. I comply with the alcohol and drug regulations We are proud that 0 incidents occurred in Lieshout maltings. Aft er several incidents about 5 years ago, we launched our extensive safety program BeSafe. This proved to be successful, as is shown by this fantastic result. Of course, we celebrated this achievement and are focused to retain our zero-incident result I operate vehicles safely in 2019.
To raise the bar even higher, we will monitor some KPIs more precisely in 2019. I always have a valid work permit Since 2017, we monitor ‘Accidents resulting in restricted work case (RWC)’ and ‘Near misses / dangerous occurrences’ in Lieshout maltings. In addition to this, we will start monitoring the same KPIs, ‘Accidents resulting in restricted work I act in case of excess CO case (RWC)’ and ‘Near misses / dangerous occurrences’ at Eemshaven maltings. 2 Quality of data for both needs to improve before we can include these KPIs in our report. 2 LTA 0 Fatalities (2017) 2 (2017) 0 LTA Fatalities (2018) (2018) 21 Our CSR Performance Our CSR Interview with Marco van Dun - plant manager Eemshaven
Marco van Dun started as a plant manager at Eemshaven maltings 4 years ago. It has been an important part of his job to prepare the local organization for the new malting towers. Doubling the capacity of Eemshaven maltings from 140.000 to 280.000 tons annually. Project preparation started already in 2015, the building process itself started in August 2016 and was fi nalised in 2018. The fi rst production started in March 2018.. “This process has not been without a struggle. A lot of eff ort has been given by many parties to realise this project so quickly, but I am very proud of the results we have achieved. During the building of the new towers, production of malt continued in the existing part. This required separation of production and construction and careful planning. As the tower is 55 meters at its highest point, safety was an important element during construction phase and in our tender criteria and we made specifi c agreements with our constructor regarding safety risks. To ensure a safe environment on a day-to-day basis, we made a safety brochure for the constructors on the building site. A good collaboration between contractors, project construction supervisor and the Holland Malt team ensured that everything went smoothly. Every morning we discussed what works would be done where and by whom and potential risks were assessed. I am happy to say that this resulted in only three minor incidents. Safety is in the hands of everyone on site and we need to be aware of each other.
During the fi rst half of 2018 our facilities were a construction site with increased safety risks, but also a production site with all regular activities needed to produce malt with no food safety issues. In the second half of the year we commissioned and ramped up capacity of the new malting towers. Our partially new operator team had to get experienced with the new equipment and systems. Of course, in a production facility safety is always fi rst priority, but during a start-up of a new plant extra caution is required because of all kinds of(un)known hazards and also construction works were still continuing in the new plant. The selection and recruitment of new personnel started already in 2017. We believe the best way is to pair new employees with the more experienced operators. A new element in our onboarding process is a training on the ‘theory of malting’, to explain the intrinsic process of malting and share why we do what we do and why it is important. This really provides a deep understanding of why each step in our production cycle is important.” 22 Our CSR Performance Our CSR 2017 100% Responsible production: circularity 96.2% 2018 Product responsibility: quality In order to be able to report on circularity, you need and circularity to have a clear defi nition of what you are evaluating. 90% 88.6% Subsequently you select objective parameters (KPIs) to We have a strong sense of determine success and monitor the progress towards 80% responsibility and distinguish 0 your target over time. Circularity within Holland Malt is 100% positive not defi ned yet and we are working on these steps to between product responsibility, Zero recalls results on external 70% quality and responsible production, quality audits have a defi nition clear by the end of 2019. By that time circularity. we expect clear defi nitions with respect to parameters 60%(!" such as minimizing waste, maximizing green renewable Firstly, we strive for excellence in quality and product safety for all products energy sources, and maximizing transport modality’s 50%'!" of Holland Malt. As part of the food sector, we are fully aware of our highest that are green and lean. In addition to this we will focus responsibility and naturally, we have been HACCP certifi ed for almost 20 on acquiring sustainable barley only and improving the 40%&!" years. Quality is our license to operate and our mission and as such an standard. intrinsic and integrated part of our business. So we stick to our motto: your 30%%!" quality in our hands. We have always been outstanding in quality and food The beverage industry is currently broadening its perspective on circularity and we are following this trend safety in the past, and we will continue to do so in the future. 20%$!" closely, assessing the work of knowledge institutes and Secondly, we strive for circularity in our business: talking to our clients to establish a shared defi nition and 10% • Ensuring local sourcing of sustainably produced barley; approach to circularity. This thought process takes time, • Using crop types that have the best environmental performance; therefore we cannot report on our circular performance !"0 • Optimising eff iciency with energy and water; yet. "*+,-./01/234*-5,6748*59*.5./3 $!#)"*+A?*+03B46*56*C0
Our CSR Performance Our CSR 2019 and we will evaluate what improvements we need to make to become FSSC Interview with Martijn van Iersel - Quality & Technology Manager at Holland Malt
Martijn van Iersel is Quality & Technology Manager at Holland Malt, where he has been working for about 10 years. In his position as Quality & Technology Manager, he is responsible for quality, but he also focuses on sustainability. “Quality is a container concept. It concerns processes and overseeing customer requirements. We want the best quality for our customers. Quality starts with knowing what type of raw materials you source. Knowing your suppliers and having insight into the growing season are key. Because both have a great infl uence on the fi nal product we deliver to our clients.
It all starts with the farmer. Good barley quality depends on the growing season and which varieties are seeded. A particularly signifi cant innovation I have seen is a barley variety that needs little water in the growing season. This makes it more resistant to the hot and dry summers we have had recently, which we expect to occur more oft en in the future. In addition, less water in the kernel during processing also means less energy for drying. Ultimately, such a variety is more sustainable in both agriculture and the malting process. This is a good example of quality and sustainability going hand in hand. There are also varieties that are more resistant to diseases, which means that less crop protection is needed. Thus biodiversity is enhanced and the profi ts of the farmer are improved. These are two examples of why we are always looking for the best varieties in close collaboration with our farmers.
Circularity is a great and interesting challenge. Fortunately, most streams are already being used eff ectively in the malting industry. The largest volume of our co-products is suitable for the animal feed industry and a part can go to the bio-fermenter. Some research is conducted to determine whether the co- products from the malting industry are also suitable for human consumption. We see potential here, but the research results currently show that only a part of the by-products can be used for human consumption and the other part is to be discarded. So overall this seems less sustainable than allocating the entire stream to the feed industry. I believe that further research is needed to have a clear answer and we continue searching for the most high-value upcycling of our co-products.”
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Holland Malt P.O. Box 50 5737 ZH Lieshout The Netherlands
CSR Content Martijn van Iersel, Quality & Technology Manager at Holland Malt [email protected]
Concept, text and coordination Didi Hoezen, 2BHonest Jessie Heemskerk, 2BHonest Jana Tijm, 2BHonest
Design & Photography: Charlotte Marsman, Bapac Design Pascal Raymond Dorland, Studio ParadoX Design fotografi e Mees van den Ekart fotografi e
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