Sustainable Development Report 2015

U p d N a E te W d E d it io n

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Sustainable Development Report 2015 "The last year has seen greater attention on the sustainability challenge of meat production and many consumers now desire to eat less meat. During this time we have made great strides to further improve the sustainability of what we do and this is captured in our new report"

Kevin Brennan, Chief Executive, Quorn Foods Ltd 2015. 1. Foreword Page 2

2. The Future of Food Page 4

3. W hat Exactly is Quorn? Page 10

orn 4. The Benefits of Qu Page 12

5. The Changing Face of Foodservice Page 16

6. Managing Our mance Environmental Perfor Page 20

1 Kevin Brennan, Chief Executive

1 Foreword

The last year has seen greater attention on the sustainability challenge of meat production and many consumers now desire to eat less meat. During this time we have made great strides to further improve the sustainability of what we do and this is captured in our new report.

The delivery of our mission – to help consumers eat less meat – will significantly contribute towards three global issues around sustainability and health. In our ‘future of food’ review we highlight three now well recognised global issues: 1 2 3 An unsustainable Significant Major health issues increase in environmental associated with over demand for meat impacts from the consumption of meat as populations production of meat – obesity and heart grow in number – at least 14% of disease are now of and wealth. GHG emissions serious concern in coming from most developed livestock.1 economies.

Demand for food is growing rapidly, and at the same time the land available is probably shrinking and climate change is making production more uncertain around the world. How ‘‘can we produce enough food for nutritious diets in sustainable ways into the future? Quorn is an excellent example of a different way of thinking: the product has good sustainability credentials, low land footprint and is highly nutritious. What’s not to value about it?” Prof. Tim Benton UK Champion for Global Food Security

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The world is going to need many solutions to these “Food is both behind many complex issues. Opinion leaders are now talking environmental and social problems and with increasing clarity about the so-called trilemma, ‘‘a key part of the solution. The current where separating our dietary choices from their food system is the primary cause of impact on both human health and the health of the biodiversity loss, water use and a planet is no longer tenable. We believe that Quorn significant driver of climate change. The system has resulted in unhealthy products offer an effective way to address these diets, obesity, over consumption of issues by providing a healthy and tasty new protein meat, especially chicken, all from a with a low environmental impact. This is highlighted shrinking gene pool. A shift to a in our report. sustainable diet, one that is plant We are also acutely aware of the impact we have based, will not only help our health on the environment. Through partnering with the and preserve diversity, it is also tasty, varied, affordable and a traditional way Carbon Trust and many leading universities we have of eating. The future of food needs to identified the environmental performance of our be grounded in a sustainable diet which products and of our organisation and have drawn up leads to a sustainable food system.” a diverse programme to further reduce the intensity Duncan Williamson of our impact. This report highlights our progress Food Policy Manager – World Wildlife Fund and future plans in this area. We remain proud of the contribution we have made so far and excited by the future possibilities that will help consumers all over the world eat less meat. Kevin Brennan, Chief Executive Quorn Foods Ltd. May 2015

Quorn Foods is the first global meat-alternative brand to achieve third- party certification of its carbon footprint figures.

See page 28 for Reference notes 3 2 The Future of Food

There are now numerous reports and publications identifying the significant global issues relating to the unsustainability of our diet. We particularly want to focus on the three relating to meat production and consumption.

1. Unsustainable demand In 2013, the UK government’s report on food security reinforced the need for a change in By 2050 world population is set to increase to behaviour such that meat is promoted as an over 9 billion, 30% higher than today. In order occasional treat rather than an everyday to feed this larger, wealthier and more urban staple. 4 Meanwhile, as demand begins to population, food production will need to rise outstrip supply, so meat prices will continue by 70%. This means an increase in cereal to rise, placing excessive strain on the supply cultivation of over 1 billion tonnes and an chain and leaving us vulnerable to issues such increase in meat production of over 200 as the ‘horsemeat scandal’. In fact, there is now million tonnes. 2 Much of the increased demand worldwide recognition that this increase in for meat is forecast to come from the Asian demand for meat simply cannot be met. Many markets, with China already consuming more reports are now highlighting that continued meat than either the USA or the EU (Figure 1) focus on intensification of existing agriculture even though its per capita consumption is to provide a solution risks both catastrophic currently only half that found in these markets. 3 impacts for our health and for the environment 5 as well as increasing the Fig. 1 potential for conflict over vital resources such as land and water.

The largest meat consumers, 2011

80 Mutton and goat meat

70 Beef Poultry meat 60 s e

n Pork

n 50 o T

n 40 o i l l i 30 M 20

10

0 China EU 27 US Brazil Russia Mexico Japan Vietnam India Argentina

Source: Chatham House analysis based on data from FAOSTAT. 4 Sustainable Development Report 2015

2. The environmental impact of meat humans. Currently, 90% of all soyabean meal is used in animal feed with analysts estimating Our understanding of climate change continues that over 40% of global crops are used in this to grow. Recent reports from the IPCC suggest way, representing a highly inefficient use of this a significant deepening of concern with food and the land required to grow it. 8,9 Reports predictions that “nobody will be untouched by also show that over 15,000 litres of water 10 are the impacts of climate change.” 6 In addition, required to produce one kilogram of beef and science is now telling us that agriculture and that if meat consumption continues to rise as food production have a surprisingly important predicted then the amount of water required role within this and represent up to 29% of to grow animal feed will need to double by the global greenhouse gas emissions 7 with the middle of this century. With over 2.5 billion 2014 Chatham House report 1 suggesting people already living in areas of water stress ruminant contributions are at least 14%. W hilst and with global warming predicted to further reductions in emissions are possible, these reduce its availability, conflicts over water are impacts could also increase as demand for expected to become more acute. meat grows, damaging the very ecosystems needed to produce crops for animal feed. In fact, the production of meat from plant proteins is inherently inefficient with huge amounts of grain and crops being used to feed livestock when it could be fed directly to

The production of meat from plant proteins is inherently inefficient

See page 28 for Reference notes 5 2 The Future of Food (continued)

Concern over animal welfare is a major driver of change in dietary behaviour

We will also need to fix problems in our global supply chains relating to food waste. The UK and USA between them waste over 55 million tonnes of food every year at a cost of over $200 million. Ironically, 10% of the greenhouse gases emitted by developed economies come from food that was never even eaten and required irrigation and processing water theoretically sufficient for the domestic use of every person on the planet 11 . And with intensive livestock production and extreme pressure on supply chain costs comes growing concerns over animal welfare Intensive livestock production powerfully described by Compassion In World and supply chain pressures are Farming in their recent investigations into the true costs of cheap meat. 5 Research in 2014 adding to animal welfare into the motivations that are shifting the concerns dietary behaviour and meat consumption of UK consumers showed concerns over animal welfare as the number one reason for Our appetite for more and cheaper meat is considering change. 12 also driving a whole industry of chemicals used extensively as fertilisers and pesticides, with concerns that this is altering much of the “Reducing meat consumption, especially from industrial farming, is one of the balance of nature and biodiversity. 5 In addition, ‘‘ biggest things we can do to help tackle whilst some nations are working to restrict climate change and ensure a more efficient and control the use of antibiotics as growth and sustainable food system.” promoters in the production of meat, their Philip Lymbery widespread use has caused many now to talk Chief Executive of Compassion in World Farming and of a new era of antibiotic resistant bacteria author of ‘Farmageddon: The true cost of cheap meat’. and the return of pandemic disease in humans.

6 Sustainable Development Report 2015

3. Health impacts of meat consumption The cost of this to public health is a major concern for governments worldwide. A recent Meat can play a vital role in a balanced diet. report from McKinsey 14 placed the economic However, research is also showing clearly costs of global obesity at over $2 trillion, that excessive consumption of red meat surpassed only by smoking and armed conflict. can contribute to obesity and its associated The evidence appears well established: obesity complications of heart disease and diabetes, together with excessive consumption of meat, as well as some cancers. The global obesity fats, sugars and salt is linked to a rising global epidemic in developed economies shows no incidence of non-communicable diseases. signs of abating, and a recent report from the However, changing dietary behaviour is Overseas Development Institute (ODI) 13 has notoriously difficult with some now calling pointed to an alarming increase in levels of for a systems based approach 12 which includes obesity in developing economies as well. In healthy new proteins with a low environmental total, one third of all adults are now thought impact such as Quorn. to be obese or overweight 13 .

While meat represents an important source of high quality protein and a range of micronutrients, energy-dense diets containing excessive amounts of red, and particularly processed meat have ‘‘ been associated with an increased risk of a range of chronic diseases including cardiovascular disease, type 2 diabetes and colorectal cancer. While such concerns were largely restricted to Western industrialised countries, the rapid increase in meat consumption associated with many emerging economies is of concern. Quorn represents a low fat, high protein alternative which can substitute for such products and potentially reduce these risks. In addition, unique properties of the fibre and/or protein associated with Quorn may have specific benefits in themselves.” Andrew Salter BSc, PhD, RNutr Professor of Nutritional Biochemistry, University of Nottingham

See page 28 for Reference notes 7 2 The Future of Food (continued)

In the UK we consume around 500 meals each containing meat every year 15 . This is at an unprecedented level and is unlikely to support UK estimate: a healthy diet. In fact, research at the University 500 meals a year of Southern California 16 has recently shown high levels of consumption of animal protein to be each are eaten associated with a fourfold increase in the risk containing meat of cancer. In the UK the NHS now recommend a reduction in the consumption of red meat from 90g to a maximum of 70g per day in order to reduce the risk of bowel cancer 17 . Modelling by researchers at Oxford University has shown that eating meat no more than three times a week and replacing with plant based foods would prevent 45,000 early deaths a year and save the NHS £1.2bn. 12. We believe that for each of the three issues highlighted we can play a significant part in the solution.

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'Strong evidence now exists for the need to shift diets towards reduced levels of meat- ‘‘eating among high consuming countries like the UK to help prevent dangerous climate change, improve health and help feed the world more fairly and humanely. The challenge now is to create the cultural and system changes that will make it easy for people to eat healthily and sustainably. Quorn is part of the solution.” Sue Dibb Coordinator - Eating Better: for a fair green healthy future

See page 28 for Reference notes 9 3 What Exactly is Quorn? J .

A r t h u r

R a n k :

i m a g e

Our origins go back to the 960s, a period when b 1 y

W a l

t there were genuine concerns about our ability to e r

S a n

d feed the world. As a response to this Lord Rank, e r s / T h

e our founder, set up a project to find a new source of

L I F E

P

i protein. This was deemed by many to be the search c t u r e

C

o for the first new food since the potato! l l e c t i o n

/ The aim was to find a micro-organism that G e t t

y could easily convert plentiful carbohydrates into

I m a

g scarcer and more nutritionally valuable proteins e

s Quorn is almost unique as a foodstuff. It is but without the use of animals as the method probably the only successful example of a of conversion. Many years of R & D and over ‘‘ technological exploitation of a naturally £100m investment identified a tiny member occurring new protein source in order of the fungi family that could be converted into to create a new food and the future will a protein. This led to the mass production of need more of this ingenuity to meet the mycoprotein, the unique ingredient that makes challenges of food security. This, as yet Quorn products so special. relatively untapped resource offers exciting possibilities to both nutritionist Rather than animals we use fermenters to grow and food engineer alike and is based upon and harvest the protein. It is not dissimilar to the the product’s low levels of fat allied with way that production of beer or yoghurt works. a high protein content and a high utility What was amazing about this new protein was in terms of product format flexibility. its ability to replicate the taste and texture These exceptional characteristics also of meat. The unique fibrous nature of Quorn include the structural properties of the means it can provide the textural experience fibres themselves which might still be exploited in ever more ingenious ways.” of eating meat. Its ability to take on flavour and lack of aftertaste means it can deliver Dr Phil Cox Head of Bio-Food Engineering Group, the taste of meat and meat dishes brilliantly. University of Birmingham This is what has already turned Quorn into a £200m brand globally with over 3 billion servings already having been enjoyed.

Mycoprotein is a tiny member of the fungi family and is at the heart of all Quorn foods. Uniquely it provides the textural as well as flavour experience of eating meat

See page 24 for Reference notes 10 Sustainable Development Report 2015

Quorn is a top 50 UK food brand, bigger than Heinz Tomato Ketchup and Doritos (Checkout Smart magazine)

As consumers we are paying increasing attention to the types ‘‘ of food we buy and consume. Food scares, dietary advice, global warming and potential future global food shortages are influencing the choices we make. Our research at Newcastle Business School is showing that a low fat content and a low carbon footprint are important food attributes that consumers value and highlights how Quorn can play an important role as consumers change their behaviour and eat healthier, more sustainable and environmentally friendly food.” Prof. Fraser McLeay Professor of Strategic Marketing Management Newcastle Business School

11 4 The Benefits of Quorn

Quorn provides an efficient and sustainable way of producing a healthy new protein with a lower environmental impact

A number of studies have shown that Fig. 2 between 12 and 24kg of feed are required to produce 1kg of edible beef. 18 Poultry has a higher conversion Producing protein efficiency but typically requires 2 to 4 kg 19 through livestock and in both cases more protein is is highly inefficient fed to the animal than is actually produced. With Quorn we simply take the carbohydrate from the grain and convert it to protein – without the need for animals (Figure 3). In fact, because the original grain protein remains available, the Quorn process actually increases the overall protein balance (Figure 4).

Fig. 3

FACT: To make 1kg of Quorn requires less than 2kg of wheat

12 Sustainable Development Report 2015

With over 70% of agricultural Fig. 4 land currently used for livestock Protein Yield per tonne of wheat production, the growing demand

0.250 for meat is going to mean that

0.200 more efficient solutions are n

i needed as land becomes 0.150 e

t 20

o scarcer. The simple elegance of r 0.100 P

f the Quorn process lies not only in

o 0.050

s Mycoprotein its ability to create protein really e 0.000 n

n Beef Chicken efficiently, but also in its ability o -0.050 T to deliver a taste and texture -0.100 that people enjoy, ma king it easy -0.150 to 'make the change'.

An individual making a change to Quorn mince instead of beef once per week for a year would save enough energy to boil approx. 20,000 kettles… the equivalent to around 1,800 cups of tea EACH WEEK!

We need different ways of producing food to meet the ‘‘ demands of a world population predicted to rise to over 9 billion by 2050. Protein from fungi, such as Quorn, is a major step in the right direction.” Prof. Lynne Boddy Cardiff School of Biosciences, Cardiff University

See page 24 for Reference notes 13 4 The Benefits of Quorn (continued)

Quorn is more water efficient Quorn produces fewer GHG emissions Water is a scarce resource that will come under increasing pressure as demand for meat grows. Food production is a major contributor to Quorn has the potential to play an important emissions and thus climate change. Livestock role by providing protein that is more efficient specifically is estimated to contribute over 14% in its use of limited water resources. 21 Whilst the of greenhouse gas emissions 1 – a greater share level of water used in the production of meat than transport. will vary by animal and method of production, Over the last four years we have worked to currently available data suggest that the water understand both the impacts of meat and of footprint of beef could be 10 times greater Quorn. There is extensive data around meat, than Quorn mince. especially beef, yet data can vary depending As both populations and demand for meat grows on assumptions. We worked with The Carbon then pressure on water resources will inevitably Trust to reach a balanced view of extensive increase. Quorn has the potential to play an peer review publications, NGOs and food important role by providing protein that is more manufacturer reports. efficient in its use of limited water resources.

The water footprint of Quorn mince = 10 times smaller than that of beef

14 Sustainable Development Report 2015

The results are remarkable. They show that Quorn Only multiple solutions products can have a carbon footprint approximately 90% and radical thinking less than beef and 75% less than chicken. 22 will help us address Comparative carbon emissions* the 9 billion challenge

By converting dishes from meat to Quorn, consumers can significantly reduce their carbon 75% 90% emissions. At Quorn, we believe less less that only multiple solutions and radical thinking will help us than than address these challenges. chicken beef The evidence suggests that we cannot rely solely on the intensification of existing agriculture and food production to provide solutions to the 9 billion challenge. We believe that Quorn foods deliver an important new dietary tool that can address our future needs for a tasty, healthy new protein with a low environmental impact.

*Comparison figures based on edible meat. Ref: Carbon Trust, 2014

15 5 The Changing Face of Foodservice

With over 7.9bn meals served We know that 44% of consumers 24 say there aren’t enough healthy options on menus. We 23 out of home every year we have work closely with the foodservice sector to give a responsibility to help schools, consumers what they want by creating tempting and recognised dishes, which are significantly hospitals, restaurants, workplaces, lower in saturated fat and calories than their sport and leisure facilities provide meat equivalents. a range of dishes that empower consumers to make an informed choice on what they eat.

Nottinghamshire Healthcare NHS Trust We’re passionate about educating the next generation and sharing our knowledge with everyone who wants to help create a fitter and healthier environment for the future.

16 Sustainable Development Report 2015

Business and industry NHS Sustainability Day is one day in a sustained campaign, providing focus for the Our foodservice partners have the responsibility ‘‘ NHS to achieve a more sustainable practice. of feeding millions of consumers on a daily Barts Health NHS Trust and “4 All of us” are basis. By focusing attention on the instant fat proud to have Quorn as a leading partner. and calorie reduction provided by the simple Quorn are part of a solution that will help us change from lean beef mince to Quorn mince, to move towards an NHS that is truly engaged we show how easy it is to enjoy healthier meals. with the principles behind a sustainable diet - The highly-qualified team has worked with better for the health of our people and planet.” caterers to create dishes that are typically less Barts Health NHS Trust & 4 All of us, NHS Sustainability Day Partners than 600 calories, 5g of saturated fat, and 2g of salt. It’s really as simple as that! Our menu solutions help guide their customers Healthcare to make an informed choice about what they’re eating. Compass Group UK & Ireland, serve Obesity affects 1 in 4 adults and 1 in 10 children over 3 million customers every day in hospitals, (up to the age of 11) in the UK. 25 Ongoing schools, workplaces, restaurants, and sport & reports state that our healthcare system will leisure facilities. It’s easy to see why making not be able to sustain the need for care and an impact here is so important to safeguarding support that obesity levels demand. Working the future health of our nation. alongside NHS Trusts, such as Barts Health NHS We help our customers understand today’s Trust, and supporting industry-wide campaigns, including the NHS Sustainability Roadshow, consumer, and, with a report from the Eating we have started to make a difference. Better Alliance and Friends of the Earth confirming an expectation that we’re going In only 2 hours we saved the NHS in each of the to see 20% of Brits cut back on the amount hospitals that supported the Sustainability day of meat they eat compared with last year 12 , of action (swapping traditional pork sausages we’re in a prime position to support this. for Quorn sausages or using Quorn mince instead of beef in staff/visitor restaurants): • 25,000 Kcal

• 150kg of CO 2 Obesity affects 1 in 4 adults • Approx. 100 tonnes of water (as well as and 1 in 10 children (up to significantly increasing dietary fibre). the age of 11) in the UK. 25 Think what we could achieve by working together to provide healthy sustainable meals in all hospitals every week rather than just 2 hours…

17 5 The Changing Face of Foodservice (continued)

Through demonstrations and workshops with children as young as four and five to those Foodservice - studying food in college, we are continually working to make engaging students in the classroom on the healthier choices easier importance of healthy eating. The team actively works with educators to think of new ways to excite students to embrace healthy eating. We are currently working with Weston-super-Mare Education College on a competition to create Quorn dishes as part of their Level 3 & 4 NVQ. With over 1 million meals served in education each year, we take our responsibility to help Manchester City Council’s provide healthy and nutritious food in schools seriously. The team offers technical support and catering team, Manchester Fayre advice in creating great-tasting healthy options. The Quorn team worked with Manchester From local authority controlled primary and Fayre to help educate over 120 unit managers secondary to free schools and independents, through cookery demonstrations and talks we work with school caterers, healthy eating explaining the versatility and nutritional values coordinators and menu planners to educate of Quorn ingredients. those providing the food. We also work with the students too. University College Birmingham The Quorn team has provided support and guidance to the next generation, for example: our ongoing relationship with the Food and Consumer Management students at University College Birmingham, where we challenge them with a range of projects. The team visits the university to teach students the health and nutritional benefits of Quorn dishes and offers tips on how to make the most of Quorn ingredients. The students are also tasked with creating a Quorn dish which will be featured on the Quorn website. The project is a great way for students to apply everything they have learnt in the classroom, as well as using their creativity and practical skills. In addition to the dishes, they are also challenged to identify a target market for their dish. The final results are judged and willingly tasted by the Quorn team.

18 Sustainable Development Report 2015

Our research at Imperial has shown interesting beneficial effects of ‘‘ mycoprotein on satiety, glycaemia and insulinaemia. Whilst there is more to do to understand these effects, these results build on previously published research and position Quorn foods as an important choice in helping to address modern day diet and health related issues.” Prof. Gary Frost Chair in Nutrition and Dietetics, Imperial College London

Our network partners

We work in close collaboration with various network partners to deliver effective R&D for sustainable growth.

19 6 Managing Our Environmental Performance

Leading the way 6. 1 Product carbon footprinting At Quorn Foods, we believe we have a role to play Quorn Foods’ best-selling meat alternative as part of the future food challenge. We believe products were the first to have their carbon that our low carbon credentials compared with footprints independently certified by typical meat diets are impressive. We therefore the Carbon Trust back in 2012. Achieving take seriously our responsibility to ensure we are third party verification of our Quorn mince managing our own impacts on the environment – and chicken-style pieces product carbon saving carbon, energy, water, natural resources footprints (destined for retail sale in the UK, and therefore cost. Nordic and South African markets) was just the start of work to calculate our greenhouse We continue to live by our long-standing history gas emissions. We remain committed to of research, development and innovation and monitoring and measuring the carbon take a lead within the food manufacturing emissions of our products, to gain insight industry by investing in analysis of the entire into the sustainability attributes of the many supply chain, from ‘farm to fork’, in order to product categories that Quorn offers. understand our own impacts and the challenges ahead. This level of analysis cannot be achieved We are proud to reveal that we successfully overnight, and we know there is more work to achieved recertification of our product carbon be done. Yet Quorn Foods were the first global footprints with the Carbon Trust in April 2015. meat-alternative brand to achieve third-party We achieved an impressive reduction of 15% certification of its carbon footprint figures in for the carbon footprint of mycoprotein and an 2012 and we encourage other food brands to overall reduction of 10% for our UK retail frozen join us in exploring how we can all contribute Quorn mince and chicken-style pieces. to more sustainable diets for our consumers. Quorn Foods achieved reductions in the product From ‘farm to fork’ we are carbon footprints of all certified products with up dedicated to outstanding to 15% footprint reductions! environmental performance You can read more about our carbon footprint facts and figures on our website. www.quorn.co.uk

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This research remains vital in allowing us to Darran Messem , Managing release information about the impacts of our Director - Certification, The Carbon Trust presents Louise products and target our carbon reduction Needham , Sustainability projects in the areas of highest impact Manager at Quorn Foods with throughout our supply chain. The reductions a Certificate of Achievement achieved were chiefly a result of the hard work for Quorn mince and Quorn pieces products and dedication of our operations teams – improving the energy and materials efficiency at our manufacturing sites. In particular, the specialised expertise of our Belasis site "Quorn has demonstrated remarkable technicians and engineers has driven progress in reducing the environmental significant yield improvements, allowing the ‘‘ impact of its most popular products over site to produce more mycoprotein with fewer a two year period, since they were last resources and utilities. certified by the Carbon Trust. The company has reduced the carbon footprint of its core The product carbon footprint methodology mycoprotein ingredient by 15 percent, which allows for careful monitoring of emissions has resulted in substantial improvements ‘hotspots’ along the entire supply chain. across the certified product range in As such, our own product carbon footprint multiple countries. Finding efficiencies and reductions are also a result of a number improvements of this magnitude over such of efficiencies and emissions reductions a short period, alongside increasing sales realised by our suppliers. So it is absolutely and business growth, is a good sign that a vital that we continue to engage and work company is both responsible and well-run." in collaboration with our key suppliers and Darran Messem customers, as well as communicating our Managing Director - Certification, The Carbon Trust findings to the consumer. Working with the Carbon Trust allows us to proudly display the Carbon Reduction Label on-pack – emphasising our third party certification achievement and exemplifying to our consumers a commitment to further carbon reductions.

Raw Product Distribution Consumer Disposal & material manufacturing & retail use recycling

21 6 Managing Our Environmental Performance (continued)

6.2 Energy In 2012 we committed to improving the carbon efficiency We continue to improve our understanding of the environmental impact of our business of our production by 14% by in order to further drive down our emissions. 2016. We reached this target After analysis of our organisational footprint 2 years ahead of schedule, with with the Carbon Trust in 2013, we fully realised the significance of our energy use with regards continuing reductions planned. to our organisational carbon footprint – with electricity contributing 72% to our Scope 1 Absolute Emissions per Tonne and 2 emissions.

We committed to improving the carbon n o i t

efficiency of our production by at least 14% c u

by 2016 from a 2012 baseline, based on the d o r P energy efficiency projects we were planning e n

to implement. We have since surpassed this n o T

target 2 years ahead of schedule by reducing / e 2

our relative emissions (tonnes CO 2e per tonne O C

of production) by 14% in 2014. 2015 is shaping s e n

up to continue with these improvements. n o T As a growing business, we must work even harder to maintain and aim to reduce our 2011 2012 2013 2014 2015 absolute carbon emissions. We plan to do this by continuing to challenge our production Production Volume Production Volume YTG sites with further energy reduction targets. (tonnes) We have been working and investing in energy and Absolute Carbon Production Volume Emissions (tonnes) reduction projects for many years and Carbon Emissions continue to drive initiatives that will ensure (tonnes) we are able to meet rising demand for our 80000 products whilst using less energy and fewer 70000 natural resources. 60000 50000 40000 30000 20000 10000 0 2010 2011 2012 2013 2014 2015

22 Sustainable Development Report 2015

At our Methwold site we are switching from kerosene to LPG in June 2015. This will deliver a cost saving of around £160,000 as well as a significant carbon reduction of almost 300 tonnes, each year equivalent to 3.5% of the total CO 2e for the site. We are also starting to implement a heat recovery programme from our retorts that will deliver significant savings.

Our Billingham site is the only production Employee Recognition site in the world that produces the ingredient winners Richard Smith key to all Quorn products – Mycoprotein. & Kris Cox from our Commissioning of a third fermenter is due for Belasis site – for the completion in 2015 following a £30 million ‘design, installation and investment. Along with creating up to 400 new commissioning of the jobs, this investment will enable an extra 60% fermenter heat capacity of mycoprotein production to meet exchangers’. global consumer demand, which is growing at 10% in volume per year. Work to improve overall energy efficiency of the site continues in earnest with, for example, the installation of two heat exchangers to recover heat from the fermenters – saving £300,000 of energy per year.

By making one simple change and choosing Quorn, you can reduce the carbon footprint of your favourite Spaghetti Bolognese or chilli dish by up to 90%.

23 6 Managing Our Environmental Performance (continued)

6.3 Water We continue to drive down our water usage across the business. We have reduced our relative water Water Usage - m 3 per tonne of production usage (m 3 water used per tonne of product) across our 3 main manufacturing sites by 12% so far based 20.0 on a 2012 baseline, however, we know we need to 18.0 do more and are aware that water stewardship is 16.0 an issue, so we will continue to engage with and 14.0 collaborate on initiatives that will contribute to 12.0 our ongoing reductions. For example, through our membership of Business in the Community, we will 10.0 be contributing to the ‘Water stewardship in food 8.0 supply chains’ project this year. 6.0 Water use and effluent management are key 4.0 challenges - particularly for the fermentation 2.0 technology used at our Billingham site. Our 0.0 current method of liquid waste treatment is energy 2010 2011 2012 2013 2014 2015 intensive but we continue to actively research alternative treatment techniques and technical solutions to this situation. In addition, research collaborations with UK universities have identified a number of exciting molecules within the waste We fully endorse Quorn’s drive toward stream with important commercial applications sustainability and sustainable food and value. Our R&D agenda is focused on ‘‘ production. As well as producing understanding more about this future potential. mycoprotein that is at the heart of all Quorn foods, our research at the Green Chemistry Centre of Excellence and the Biorenewables Development Centre is showing the fermenter waste stream to be a rich and exciting source of natural components with significant commercial potential in both food and non food applications.” Prof. James H Clark Director, Green Chemistry Centre of Excellence Dr Avtar S Matharu Deputy Director, Green Chemistry Centre of Excellence

24 Sustainable Development Report 2015

Our Stokesley site achieved the Greener Path Award for landfill diversion

6.4 Packaging & Waste Reducing waste We are very proud of our achievement of zero waste to landfill at our Stokesley site this year – with our Methwold site following closely behind at 99% of waste avoiding landfill. We manage our operations with the waste hierarchy as a key principle and, as a result, have been awarded the Greener Path Award for Landfill Diversion; recognising and celebrating exemplary effort and achievement in minimising waste by ACM Environmental Plc and in association with the British Council for Sustainable Development .

We are delighted that Marlow Foods is a recipient of the Landfill Diversion Award. ‘‘ We have worked in partnership with them to help implement an environmentally- sound waste management strategy and to see them achieve such sustained and impressive landfill diversion results is extremely gratifying.” Andy Jacobs Andy Jacobs, Chief Executive of ACM Environmental

25 6 Managing Our Environmental Performance (continued)

Packaging ‘Project Minimise’ for bulk As part of our packaging supplier evaluation product packaging process, we actively look for suppliers who can Our teams worked hard on a project to demonstrate responsible business practice and completely reassess and redesign the way a commitment to sustainable development. in which we package our bulk intermediate ‘Light weighting’ of packaging is a standard products, to maximise the load efficiency of our requirement at product design stage. We work pallets and significantly reduce the amount of closely with our suppliers to establish the minimal corrugated material within our supply chain. materials possible to create a functioning pack – resulting in less material, energy use, logistics Over a 3 year period we: and waste throughout the supply chain. • achieved an annual corrugated tonnage reduction within our supply chain of over 500 tonnes • increased our typical pallet loading by 8% • removed 3,772 delivered pallets from our supply chain – equivalent to 145 vehicle loads

26 Sustainable Development Report 2015

6.5 Supply chain collaboration With approximately 75% of our emissions global user of palm oil – keeping our use of its being driven by our use of raw materials, derivatives to a minimum and restricting usage communication and collaboration with our to situations where its functionality is key to supply chain is absolutely key. Our plans providing the best quality products. However moving into 2015 will ensure all of our suppliers we are fully aware of the concerns of consumers are engaged with us in minimising our regarding the environmental and social issues environmental impacts and improving efficiency. relating to palm oil cultivation and harvesting A good example is our commitment to and are keen to provide reassurance. supporting the work of the Roundtable on Sustainable Palm Oil (RSPO) and ensuring all Recipes for all meal shots shown in this our suppliers are members. This is despite the report can be found at www.quorn.co.uk fact that Quorn Foods is certainly not a major

27 Quorn Foods company information

Quorn Foods employs 6 15 employees across 5 sites: Belasis (Teesside), Stokesley Head Office (North Yorkshire), Methwold (Norfolk) and 2 additional offices based in Chicago and Frankfurt.

Quorn Foods is an equal opportunity employer and aimed at inspiring school children about the career is committed to working within the spirit and letter opportunities in the FMCG industry. We employ of UK employment law. between 9 and 12 apprentices at any one time, and 65% of Quorn Foods employees live within a offer around 10 work placements per year to provide twenty mile radius of our sites, injecting economic opportunities for school and graduate students to activity into the communities where we operate. develop work based skills and to be potential future We encourage community giving and we raise vital employees of our business. funds for a number of charities through charity Our people have access to wellbeing training, fundraisers and payroll ‘give as you earn’ schemes. occupational health and employee assistance The FMCG (fast moving consumer goods) industry services. employs 1 in 7 people in the UK and to help build a Quorn products have been assessed and approved workforce for the future, we work in partnership with for sale by all markets we have approached for the Institute of Grocery Distributors and participate launch including UK FSA, US FDA, Australia FSANZ, in the ‘Feeding Britain’s Future’ programme which is EU EFSA and Health Canada.

References

1 THE ROYAL INSTITUTE OF INTERNATIONAL AFFAIRS (CHATHAM HOUSE) (2014) 16 http://www.washingtonpost.com/national/health-science/too-much-proteincould- ‘Livestock – Climate Change’s Forgotten Sector: Global Public Opinion on Meat and lead-to-early-death-study-says/2014/03/04/0af0603e-a3b5-11e3-8466- Dairy Consumption’ http://www.chathamhouse.org/sites/files/chathamhouse/field/ d34c451760b9_story.html field_document/20141203LivestockClimateChangeBaileyFroggattWellesley.pdf 17 NHS Choices –red meat and the risk of bowel cancer. 2 http://www.foeeurope.org/meat-atlas;http://www.fao.org/fileadmin/templates/ http://www.nhs.uk/Livewell/Goodfood/Pages/red-meat.aspx wsfs/docs/expert_paper/How_to_Feed_the_World_in_2050.pdf 18 RAMIREZ, CA, PATEL, M and BLOK, K (2003) ‘How much energy to process one pound of 3 http://www.theguardian.com/news/datablog/interactive/2013/aug/05/countries-meat- meat? A comparison of energy use and specific energy consumption in the meat industry eaters-compared of four European countries’ Energy 31 (2006) 2047-2063; 4 House of Commons International Development Committee. Global Food Security. 2013 PIMENTEL, D and PIMENTEL, M (2003). ‘Sustainability of meat-based and plant-based 5 Lymbery, P and Oakeshott, I. (2014) Farmageddon. The true cost of cheap meat. diets and the environment’ The American Journal of Clinical Nutrition (2003) 660S-3s; Bloomsbury Press. CEDERBERG, C and STADIG, M (2003) ‘System expansion and allocation in life cycle 6 http://ipcc-wg2.gov/AR5/images/uploads/IPCC_WG2AR5_SPM_Approved.pdf assessment of milk and beef production’ International journal of LCA 8 (6) 350- 356; 7 https://ccafs.cgiar.org/news/press-releases/agriculture-and-food-production- CASSIDY, ES, WEST, PC, GERBER, JS and FOLEY, JA (2013) ‘Redefining agricultural yields: contribute-29-percent-global-greenhouse-gas From tonnes to people nourished per hectare’ Environmental Research Letters 8 (2013) 034015. 8 http://www.fao.org/3/a-ar591e.pdf 19 ROSEGRANT, M.W., LEACH, N. & GERPACIO, R.V. (1999) ‘Meat or wheat for the next 9 http://alumni.stanford.edu/get/page/magazine/article/?article_id=29892 millennium? Alternative futures for world cereal and meat consumption.’ Proceedings 10 Mekonnen, M and Hoekstra A (2012) A global assessment of the water footprint of of the Nutrition Society, 58: 219–234. farm animal products. Ecosystems 15, 401 – 415 20 RIPPLE, WJ, SMITH, P, HABERL, H, MONTZKA, SA, MCALPINE, C and BOUCHER, DH (2014) 11 http://www.tristramstuart.co.uk/FoodWasteFacts.html ‘Ruminants, climate change and climate policy’ Nature Climate Change Vol 4 Jan 2014. 12 Dibb, S and Fitzpatrick, D. (2014) Lets talk about meat. Changing dietary behaviour for 21 HOEKSTRA, AY (2013) ‘The water footprint of modern consumer society’ Routledge, UK the 21st century. http://www.eating-better.org/ 22 CARBON TRUST (2014) ‘Quorn, beef and chicken footprints’ Internal report. 13 OFFICE FOR INTERNATIONAL DEVELOPMENT (2014) ‘Future diets: Implications for 23 ALLEGRA FOODSERVICE UK Eating Out Market Review – February 2014 agriculture and food prices’ http://www.odi.org.uk/sites/odi.org.uk/files/odi- assets/publications-opinion-files/8776.pdf 24 ALLEGRA FOODSERVICE Eating Out in the UK 2014 14 MCKINSEY GLOBAL INSTITUTE (2014) How the world could better fight obesity. 25 NHS CHOICES ONLINE (2014) ‘Obesity’ http://www.mckinsey.com/Insights/Economic_Studies/How_the_world_could_better_fight_obesity http://www.nhs.uk/Conditions/Obesity/Pages/Introduction.aspx 15 DEPARTMENT FOR ENVIRONMENT FOOD & RURAL AFFAIRS (2013) ‘Family Food 2012’ https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/2652 43/familyfood-2012report- 12dec13.pdf and Agriculture and Horticulture Development Board (2013) ‘EBLEX UK Yearbook 2013 Cattle’ http://www.eblex.org.uk/wp/wp- content/uploads/2014/02/m_uk_yearbook13_Cattle110713.pdf

28 Sustainability is an immensely exciting area of research for us at Quorn Foods. We learn ‘‘ something new every day about the role that our unique protein and delicious products could play as part of sustainable diets. Considerable research and hard work to reduce our own impacts continues, alongside a genuine passion to stay loyal to the very inspiration the business was founded upon 50 years ago!” Louise Needham Sustainability Manager Quorn Foods

Quorn Foods Ltd. A sustainable vision: Mixed use farming within 1 mile of our Stokesley manufacturing site

29 Join the debate We believe Quorn makes a positive contribution to making diets more sustainable. Our aim is to keep the conversation going and create debate. We welcome your help and ideas to make this happen.

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Quorn Foods Ltd, Station Road, Stokesley, North Yorkshire TS9 7AB www.quorn.co.uk

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