A Study of the Current Utilization of Business Transition Management Theory Within the Dutch Sustainable Food & Agribusiness Sector

A study of the current utilization of Business Transition Management theory within the Dutch sustainable Food & Agribusiness sector.

Casper Jan Velthuijs, 10626689 Supervisor: Willem Dorresteijn Faculty of Economics and Business 21/06/2019

Statement of Originality This document is written by me, Casper Velthuijs, student number 10626689, and I declare to take full responsibility for the contents of this document. I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it. The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.

Table of Contents Page Abstract 4 Chapter 1. Introduction 5

Chapter 2. Literature review 6

2.1 Sustainable development 7 2.2 Food and Agribusiness sector in need of change 7 2.3 Transition Theory 8 2.2.1 Complexity 9 2.2.2 Multi-Phase model 9 2.2.3 The Multilevel model 10 2.2.4 Complex adaptive systems model 11 2.4 Sustainable development and transition theory 11 2.5 Business Transition Management 13 2.5.1 Strategic envisioning 14 2.5.2 Tactical networking 14 2.5.3 Operational innovation 15 2.5.4 Reflexive monitoring 15

Chapter 3. Conceptual model 15 3.1 BTM Framework 15

Chapter 4. Methodology 17 4.1 Research design & data collection 17 4.2 The Sample 18 ` 4.3 Analysis 19

Chapter 5. Results 21 5.1 Relevance of documents 21 5.2 Arla 22 5.3 Best Fresh 24 5.4 Cono 26 5.5 Cool Fresh 27 5.6 Coop 28 5.7 Dalco 30 5.8 Delphy 31 5.9 Gulpener 32 5.10 Jumbo 33 5.11 Nature’s pride 35 5.12 Royal A-ware 36 5.13 Royal Cosun 37 5.14 Spadel 40

Chapter 6. Discussion and Conclusion 42 6.1 Limitations 43 6.2 Utilization of BTM 43 6.3.Absence of Reflexive monitoring 45 6.3.1 Recommendations 45 6.4. Bi-partisan versus network collaborations 45 6.4.1 Recommendations 46 6.5. Absence of BTM 46 6.5.1 Recommendations 46 6.6. Conclusion 47

References 48

Appendix 53

I would like to dedicate this thesis to my parents and to Irene, without whom I would be nowhere.

Abstract

Transition Theory has been guiding the Dutch governments approach to Sustainable Development for almost 18 years (Ottens & Edelenbos, 2019). With the recent publication of reports on the future of climate change mitigation (Hekkenberg & Koelemeijer, 2018) and agriculture (Ministerie van Landbouw, Natuur en Voedselkwaliteit, 2019), it has recommitted itself to this school of thought. Transition Theory is not only available for public governance purposes however. It has long been suggested for commercial use as well (Loorbach, van Bakel, Whiteman, & Rotmans, 2010), being introduced by commercial actors on a number of occasions (Loorbach & Rotmans, 2010) (Silva, Rosano, Stocker, & Gorissen, 2017). However, little study has been done into the general adoption of this theory in the private sector, academics focusing on theoretical framing of this issue (Lachman, 2010) and studying it through in-depth case studies (Loorbach & Rotmans, 2010) (Silva, Rosano, , & Gorissen, 2017). This study aims to build on this body of work, by looking at the implementation of Business Transition Management (BTM) within the sustainable food and agribusiness sector in the Netherlands. To do so, it conducts a framework analysis of strategy documents of 13 prominent businesses within the Dutch food and agribusiness network for Corporate Social Responsibility (MVO, 2019). The results of this are that six out of the thirteen business do indeed use BTM, yet do not do so in its entirety. These businesses are not integrating multi- party evaluation platforms into their strategy, excluding a vital part of the BTM framework. Seven of the businesses take an independent approach to creating sustainable innovations and therefore do not use BTM in their sustainability strategy.

1. Introduction

Since 2001, Transition Theory (TT) has been guiding the Dutch national government's approach to Sustainable Development (SD) (Ministerie van Volkshuisvesting, Ruimtelijke Ordening en Milieu, 2001), featuring prominently in recent national agreements on climate change mitigation (Hekkenberg & Koelemeijer, 2018) and the future of the Dutch food system (Ministerie van Landbouw, Natuur en Voedselkwaliteit, 2019). Basing itself on Complexity and Population Dynamics theory (Loorbach, 2010), TT finds that implementing policies to create SD from a single vantage point is ineffective . This simply does not acknowledge the inherent subjectivity and complexities of the issues connected to SD, such as biodiversity loss, climate change mitigation and social equity. SD requires the collaboration between a multitude of actors to resolve such issues effectively (Loorbach, 2010). TT therefore recommends a governance regime that encourages collaboration between the government and a broad range of stakeholders to devise and implement sustainable solutions (Rotmans at al., 2001). This approach to SD has been used by the Dutch government, in varying degrees of intensity, over the last 18 years (Ottens & Edelenbos, 2019). One of the key stakeholders that need to be present within sustainability initiatives are businesses. They will be the ones that need to create sustainable business models that enable the economy as a whole to reach the government’s social and environmental goals (Bennet et al., 2016). Their prominent role in the societal shift towards sustainability has led transition theorist to come up with the Business Transition Management (BTM) framework (Loorbach & Wijsman, 2013), a model that outlines how businesses can take part in the societal transition towards sustainability. Just as in the governance model, the BTM framework stipulates that businesses should focus on the interdependencies between business and society, as well as taking a collaborative approach with their competitors when attempting to introduce sustainable solutions into the market (Loorbach, van Bakel, Whiteman, & Rotmans, 2010). It is no longer enough for businesses to focus on how they themselves can act sustainably, they must see themselves as part of a larger network. Most of the research in this field has focused on defining the methods through which transition management can be implemented (Lachman, 2013), and the effects of this implementation on individual projects (Loorbach & Rotmans, 2010) (Silva, Rosano, Stocker, & Gorissen, 2017). This study aims to expand this field by investigating to what extent businesses within the Dutch Food and Agribusiness (FA) sector are indeed using ideas from BTM in the formulation of their own sustainability strategy. Instead of looking at how 6 transition management can be implemented, this study looks at the realities of today, to examine the extent to which it has been implemented within organizations themselves. This hopes to determine which elements have been adopted, exposing those that have not and, in doing so, pinpoint areas that are in need of further research or real-world action. To achieve this goal, this study analyses the sustainability strategy documents of businesses that are members of the Dutch FA network for Corporate Social Responsibility (CSR) (MVO, 2019). This network is comprised of businesses who claim to be front runners in creating sustainable solutions in the FA sector (MVO, 2019). The FA sector is chosen as a field of study due to the many sustainability issues it faces and its direct connection to natural systems in the production process (Friedrich, Heyder, & Theuvsen, 2012). Limiting the study to businesses that are members of the CSR network, prevents this study from becoming a research into the FA sector as a whole. Furthermore, it focuses the research on businesses that are actively trying to create SD within the FA sector, leading to the following research question:

RQ: To what extent are businesses, that are actively engaged in creating Sustainable Development in the Dutch Food and Agribusiness sector, utilizing Business Transition Management in their sustainability strategy?

The following chapter reviews the academic literature that guides this study, touching on its societal relevance and the main concepts that build into the Business Transition Management model. Chapter 3 consists of an explanation of the conceptual model. Chapter 4 expands on the analytical tools & methods used in this research. Chapter 5 will present the results of the study. Chapter 6 contains a discussion of these results, provides recommendations for future research and puts forward a conclusion.

2. Literature review

The following chapter gives a literature review on topics related to TT and the research question at hand. The first section gives a definition of Sustainable Development, as it is understood in this thesis, and outlines why the Dutch FA sector is in need of change to achieve SD. Section 2.3 outlines the essential concepts behind TT, it explains the theories and models it uses to understand societal change. Section 2.4 builds on these models, and explains how TT recommends certain governance practices to help guide society towards SD. These 7 sections all build towards 2.4, an explanation of the Business Transition Model. It is necessary to give a comprehensive outline of what this model is built on, in order to understand its societal relevance and intended goal. Finally, chapter 3 presents a conceptual model used to evaluate the presence of BTM in the Dutch FA sector.

2.1 Sustainable Development This research defines Sustainable Development along the same lines as it is been inscribed in international agreements by the United Nations (UN) (Griggs et al., 2013) and Dutch public policy (Ploumen, 2016). The fundamental definition that is used by both parties comes from the Bruntland report published in 1987 which states that Sustainable development is “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (Brundtland, 1987, p.3). In short, SD is seen as the effort to improve the living standards of the global population while also mitigating the environmental damage human activity is causing (Griggs et al., 2013). The following section will put SD into the context of the Dutch governments approach to improving the FA sector.

2.2 Food and Agribusiness sector in need of Change The last major shift in the Dutch food system occurred during the middle of the 20th century, with the passing of the Green Revolution (Veldkamp et al., 2009). The introduction of industrial farming techniques, chemical fertilizers and enhanced crop genetics increased output and pushed the Dutch FA sector into a position where it is now the second largest exporter of food, counted by value in US dollars, in the world (Mulder & Biemans, 2018). However, this position has come at an environmental cost (Veldkamp et al., 2009). This intensive form of agriculture is both a major cause of greenhouse gas emissions and highly destructive to local biodiversity; the Dutch country side is sometimes described as a green desert (Van der Valk, 2002). A second major issue facing the Dutch food sector is the exploitative nature of some of the products that are imported from abroad and sold on the Dutch market. Chocolate produced at the hands of modern-day slavery (Manzo, 2005), palm oil imports that required the deforestation of pristine primary rainforest on the Indonesian archipelago (D’Antone & Spencer, 2015), are but two prominent and poignant examples. The need to tackle this issue has been addressed by a multitude of studies in different academic disciplines (Maloni & Brown, 2006) (Freidberg, 2004) and has been discussed in several government policy initiatives (van der Knijf, Bolhuis, van Galen & Beukers, 2011). 8

With a global realization that both, anthropogenic climate change (IPCC, 2014) and global biodiversity loss (IPBES, 2018), are at critical points in their development and a growing awareness of the exploitative nature of international supply chains (Boström & Klintman, 2009), the Dutch government has announced that it sees the need to fundamentally change the manner in which the FA sector functions (Sterl, Höhne & Kuramochi, 2016) ( Van Doorn et al., 2016) (van der Knijf, Bolhuis, van Galen & Beukers, 2011). They aim to do so by using the knowledge aggregated in what is now called Transition Theory (Veldkamp et al., 2009) (Hekkenberg & Koelemeijer, 2018) (Ministerie van Landbouw, Natuur en Voedselkwaliteit, 2019). The following section gives an explanation of the fundamental concepts behind this school of thought and how it could be used to facilitate changes in the FA sector.

2.3 Transition Theory Transition Theory (TT) was developed in the early 2000’s, basing itself on numerous other theoretical approaches to studying change from a system perspective, including socio- technical system, innovation systems and population dynamics theory (Loorbach, 2010). The combination of these theories created the following storyline. Transition is an eternal process of societal change, that comprehensively restructures specific subsections of society, or goes on to fundamentally change society as a whole. The following features are attributed to such societal changes.

1. They concern comprehensive changes in the economic, cultural and ecological climates of a society. These factors are interrelated and thus reinforce each other in causing or resisting change. 2. This period of change is long lasting, taking at least 25 years. 3. These changes occur on multiple different levels.

A transition describes how one institutionally stable system evolves into another through the “co-evolution of markets, networks, institutions, technologies, policies, individual behavior and autonomous trends” (Loorbach, 2010, p.18). This dazzling array of factors, that need to be taken into account when examining a transition, points toward a key feature of TT, the complex nature of societal transitions.

2.3.1 Complexity Societal transitions are complex due to the fact that they have a varied range of causes and an equally diverse range of implications (Loorbach, 2010). To give an example, it was not only the discovery of steam power that caused the industrialization of 19th century Europe, it was equally caused by a shift in political and economic systems, supported by cultural identities and geological circumstances (Geels, 2011). Furthermore, transition can be sped up due to singular events, such as large-scale disasters, but cannot be said to be caused by one event in particular (Loorbach, 2010). Gradual changes in the environment of a society determine the overall direction of a transition, prominent events might push such a transition in a certain direction at a greater pace, but they are not the force driving the change itself. To represent these characteristics TT uses three defining models; the Multi-Phase, Multi-Level and Complex Adaptive System models, to get to grips with the complex mechanisms of societal change. One could say that these build into one another, whereby the final model encompasses the first two and is seen as the most complete version. The following section describes each model and shows the growth in complexity as each model is expanded.

2.3.2 Multi-Phase model Even though transitions are seen as non-linear shifts in societal structure, these shifts occur over long periods of time and pass through several phases, before a new equilibrium is reached (Rotmans at al., 2001). An established state of practices must be broken down, while a new paradigm gradually arises simultaneously. The general rule here is that societies experience extended periods of general stability and refinement of the practices during a state of equilibrium, which is followed by comparatively shorter stages where change occurs, leading to its non-linear classification (Figure 2.1).

Figure 2.1. Multiphase transition model. Loorbach, D. (2010). Transition management for sustainable development: a prescriptive, complexity‐based governance framework. Governance, 23(1), 161-183. https://doi.org/10.1111/j.1468-0491.2009.01471.x 10

The fluid S-shaped curve is, of course, a very general way to describe something as complex as societal change (Loorbach, 2010). This curve represents multiple intertwined innovations that occur at different rates and levels of society, that eventually replace the dominant structure of a society over time. A systems approach tries to model for these complexities and defines that transitions occur through the interaction of multiple different sub-systems, that are in turn effected by individual changes in the products and processes implemented within each system. This requires examining society from multiple different levels.

2.3.3 The Multi-Level model The Multi-Level model (Figure 2.2) used in TT has its origins within the study of how technological innovations enter and disrupt a market, yet it is now used to describe a much broader network than the market for microchips (Geels, 2010). The starting point of this model is the dominant societal regime, this level describes the prevalent culture and practices visible in the physical and intangible infrastructure of a society (e.g transportation infrastructure, commination networks and political mechanisms). These structures keep a system stable as they require time and energy to change, or have strong institutional inertia, such as the boundaries set by an existing legal system for example. Moving down the model we find the micro or niche level. Innovations and new ideas are invented and tested on this level, pushing the boundaries of what the social regime can accept. Activities on both of these levels interact and are affected by phenomena on the landscape level, pictured floating above both levels. Here political ideas, ethical values and built environments affect the overall direction of change within both levels (Geels, 2010). The rise in the global green movement is an example of a process that occurs on the landscape level, and effects both the regime and niche levels. This model has been expanded even further by TT, to represent the realization that societies are in fact made up of multiple different systems and to show the evolutionary process that occur between each section of the model.

Figure 2.2. Multi-level model of transition. Loorbach, D., & Wijsman, K. (2013). Business transition management: exploring a new role for business in sustainability transitions. Journal of cleaner production, 45, 20-28. https://doi.org/10.1016/j.jclepro.2012.11.002 11

2.3.4 Complex Adaptive Systems model This final model was developed to show that society is perhaps best seen as a wide range of different technological systems, each having its own regime, niche and landscape characteristics (Loorbach, 2010). A complex adaptive system model commences with the idea that developments within a societal system are determined by the developments between each level of a specific subsystem (niche, regime) and the surrounding environment. To take such an approach requires a distinction between “system-internal, system-specific and system- external developments” (Loorbach, 2010, p.21). One can then take an individual system as a sphere for analysis, in the case of this study this would be the FA system. Studying the internal developments within this system, determining the dominant practices and novel innovations that arise as a system develops. One simultaneously includes the developments in external systems and frames the developments within such a subsystem as part of the of overall societal system. The eventual picture of society that is created is a collection of different subsystems, regimes with niches that reside internally and externally, and together create the overall societal system, interacting with its environment (Figure 2.3). These systems are constantly adapting, to developments occurring internally, within other systems and to the overall environment.

Figure 2.3. Complex adaptive systems model. Loorbach, D. (2010). Transition management for sustainable development: a prescriptive, complexity‐based governance framework. Governance, 23(1), 161-183. https://doi.org/10.1111/j.1468-

0491.2009.01471.

2.4 Sustainable Development and Transition Theory Taking these models as a starting point, TT has developed a governance method through which actors can attain a level of agency in influencing how transitions take place in order to address the complex issue of SD in particular (Loorbach, 2010). This is now called transition management. It is important to note that understanding a society as an 12 amalgamation of complex adaptive systems could be used to guide it in any direction, creating SD is just the key idea leading researchers and policy makers at this point in time. The following section explains the principles of transition management and leads into how this has led to a specific business-related framework being created as a result (Loorbach, 2010). The golden thread that runs through transition management is that a governing body must anticipate and act on the landscape level trend driving the need for sustainability, to encourage niche level innovations relating to this issue and so, cause a regime transition within a particular industry or subsystem (Rotmans et al, 2001). As it is attempting to do so within a complex and ever-changing set of systems, a governing body cannot hold on to a fixed set of policy initiatives. It must be able to adapt and change its own goals through collective learning activities, while maintaining a long-term vision on creating sustainability in society. Furthermore, it must use the sharing of knowledge between actors to break through barriers that a current system may have in place, such as legislative or financial restrictions. Transition management aims at creating spaces where such collective learning activities can take place, so called transition arenas. In these arenas, commercial, governmental and academic stakeholders related to a particular subsystem are gathered to create a Learning-Action Network; a space where knowledge & capabilities are shared and where new innovations are developed and released into the market (Loorbach, van Bakel, Whiteman, & Rotmans, 2010). As these network-based approaches are implemented, co- evolutionary mechanisms start to take hold, whereby the commercial, governmental and societal stakeholders keep adapting to the knowledge that is shared within the network. These learning-action networks are considered vital in overcoming the inertia of the current unsustainable regime and cause a non-linear transition within a subsystem (Loorbach, van Bakel, Whiteman, & Rotmans, 2010). Such learning-action networks have been implemented and studied in a number of case studies, all within the Netherlands, to test this governance framework and to see if this theoretical concoction does indeed help push industries towards sustainability (Loorbach & Rotman, 2010). The first of its kind was a project involving economically depressed old mining communities in the Parkstad region of Limburg (Loorbach & Rotmans, 2010). A truly governance-based project, it aimed at gathering together municipal governments and its inhabitants to define the future of the region. This project ran for one year and resulted in the merging of the regions municipal bodies under a single regulatory body with clear goals set according to developing sustainability in the region and the direction of its commercial sector. Furthermore, it spawned several smaller working groups, new transition arenas including 13 many non-government actors, that continued to work on improving the areas living conditions. A second of such case studies described the transition program set up by the Dutch Ministry of Health, Welfare and Sports (Loorbach & Rotmans, 2010). This working group set out to create an experimental space for new healthcare solutions, which would then be communicated to all parties active in the Dutch healthcare system. These projects were all firmly based in the public sphere yet included commercial actors throughout the entire process. These first case studies started to build ideas on how businesses should be involved in this process, both concluding that collaborative approaches should lie at the heart of any involvement in the transition process (Loorbach & Rotmans, 2010). The first major case study focused entirely on the commercial end of the transition of society was initiated by the EHSA group, a manufacturer of bitumen products (Loorbach & Wijsman, 2013). An unlikely candidate for creating sustainable solutions one might say, as bitumen is a byproduct of the oil industry. However, the EHSA group succeeded in creating a true learning-action network composed of local government bodies, knowledge institutes, producers of roofing products, potential customers, architects and NGO’s that all worked to create a way that roofing could aid in reducing carbon emissions, improving water management and enhancing local biodiversity within the Netherlands. This case was guided by academics from the transition institute, a thinktank linked to the Erasmus University in Rotterdam, but was truly led by a commercial actor. This has expanded the field of Transition Theory, from the public sphere towards the action of commercial parties.

2.5 Business Transition Management The case studies described above allowed researchers to adapt the previously governance-based transition management framework for use in the private sector (Loorbach & Wijsman, 2013). This Business Transition Management (BTM) framework set outs a way for commercial actors to orient their business towards taking part in sustainable transitions and, by doing so, develop new business models that can contribute to both economic growth, social equity and ecological sustainability. This framework sets out that businesses need to redefine their strategy and, instead of focusing on how they should act as an individual entity, define ways to take part in learning action networks within their industry or geographic region (Loorbach & Wijsman, 2013). Loorbach and Wijsman (2013) are the creators of the BTM framework, having come up with it after being heavily involved in the transition theory field for over the years and using the EHSA case study in particular to define it in precise terms. The BTM framework is 14 split into four distinct concepts, each describing a different process within the strategy of a business. It commences with a description of how a business should go about setting their goals related to sustainability issues, Strategic Envisioning. It continues to expand on how business should sow the seeds of collaborative action, Tactical Networking. This is followed by an explanation of how business should conduct experiments and implement solutions to sustainability issues together with or separate from other parties, Operational Innovation. The final concept within the BTM framework is Reflexive Monitoring, this outlines how a business should review and react to the actions undertaken during the other stages of the framework. The section below gives a more detailed description of each of these concepts, which are vital to this research.

2.5.1 Strategic Envisioning The first concept within the BTM framework, strategic envisioning, immediately signals the collaborative approach that TT requires of a business. This step determines that employees from the business need to come together with stakeholders and other societal actors to define the societal issue they want to aid in solving. Here they must clearly define which issue they aim to tackle and how the actions of a firm will facilitate a transition, together with the other members involved. The effects of a business’s actions on society in general, stakeholders and on the business itself, should be defined here. At the heart of this discussion should be the wish to transform society according to sustainability principles, taking both environmental and social concerns into account. This feature of the framework shows that a firm accepts the interrelated nature of the issue they want to address and reflects their willingness to integrate views from other stakeholders into their own actions.

2.5.2 Tactical Networking The next step in the cycle consists of tactical networking, this is a practical implementation of the strategy built in step one. This step sees a business develop strategies and coalitions around the societal issue they aim to address together with other stakeholders. This does not only include direct actions with definite goals, the definition of learning objectives and experiments should also be included in this section. The goal of this coalition is to overcome the inertia of the present systems physiological, legal and financial barriers through experimenting together, and realizing what is now being called transition pathways.

2.5.3 Operational Innovation Creating experimental new products, services and financing schemes is the next step for a business implementing BTM. These tests are vital in determining the feasibility and profitability of novel modes of business as well as showing where potential barriers may lie in their implementation. These experiments, product and process innovations can be achieved within the firm itself, or as another collaborative effort by the members involved in the network. This process has been coined operational innovation.

2.5.4 Reflexive monitoring The final concept within the transition cycle is determined to be the act of a business integrating flexible and multi-stakeholder conversation platforms into their business strategy, to discuss and evaluate the effect of the activities described above. This enhances the learning capabilities of the network as a whole and facilitates more efficient resolution of the issues at hand. Allowing the network to remain flexible and capable of resolving new issues as they arise is pivotal in creating a business that is addressing issues as complex as SD. This mode of evaluation has been named reflexive monitoring by Loorbach & Wijsman (2013). The BTM model rest firmly on the previous TT models. It rests on the assumption that the global push for SD requires a non-linear societal transition in most industries, sub-systems in TT jargon, and that for business to play and effective part in this, they should adjust their strategy accordingly. Having now put forward the theoretical background to this research, the following chapter will put forward the conceptual model that guides this research to outline clearly what exactly this study aims to test.

3. Conceptual Model

The aim of this study is to examine to what extent businesses, that are actively engaged in creating sustainable development in the Dutch Food and agribusiness sector, are using Business Transition Management in formulation of their sustainability strategy. The following section will outline the conceptual model used in this research.

3.1 BTM Framework The outline of this research is straightforward, we aim to test whether BTM processes are present or not within the strategy document of a business. To achieve this, this paper takes 16 a hypothesis testing approach. Subsequently the main hypothesis we look to support, or reject is.

H1: The business uses Business Transition Management in its sustainability strategy.

As described in the literature review, the BTM framework consists of four different concepts; Strategic envisioning, Tactical networking, Operational innovation and Reflexive monitoring. To accept H1, each concept must be present within the strategy document of a business. This creates four more hypotheses, one for each of the concepts within the BTM framework.

H2: Strategic envisioning is present within the document. H3: Tactical networking is present within the document. H4: Operational innovation is present within the document. H5: Reflexive monitoring is present within the document.

Figure 3.1. Conceptual model to test the presence of BTM within a sustainability strategy document (Loorbach & Wijsman, 2013).

The concept can either be deemed present within the strategy document of a business, meaning the hypothesis is supported, or it is deemed to be absent, meaning the hypothesis is rejected. If all four of these hypotheses are supported, full utilization of BTM can be concluded and H1 can be fully supported (Figure 3.1). If some, but not all, of the concepts of the BTM model can be deemed to be present within a document, one can conclude that this business is partially utilizing BTM within its strategy formulation, H1 can be partially supported. If none of the four hypotheses are supported, H1 is rejected, and it can be 17 concluded the business does not use BTM in its sustainability strategy. Building on this conceptual model, the following chapter will expand on the methods used in this research to answer the research question.

4. Methodology

The primary goal of this study is to examine to what extent businesses in the Dutch FA sector are using BTM in the formulation of their sustainability strategy. The following chapter will explain the research design, the methods of data collection, sampling choices and analytical tools used to answer this question.

4.1 Research design & Data collection This study takes the form of a cross-sectional framework analysis conducted on the Dutch sustainable FA sector. The research strategy entails a qualitative content analysis of businesses’ strategy documents (Graneheim & Lundman, 2004) (Srivastava & Thomson, 2009). Qualitative analysis is not the most widely used research method for theory testing, but it is considered an academically valid approach by the American Journal of Management (Bansal & Corley, 2012). The following section explains the method data collection and touches upon the reliability and validity of the data. The data is entirely composed of primary data, in the form of the most recent sustainability strategy documents published by the businesses in the sample. In most cases, these come in the shape of a corporate social responsibility report, which explains how a business has engaged in creating sustainable solutions in the past and how it plans to do so in the future. In other cases, these documents come in shape of a report that explicitly expresses the sustainability strategy of the business in question and is titled as a sustainability strategy report. If neither of these documents are available, the annual report of the business is analyzed, however this is only undertaken if it contains a section on the sustainability strategy of a business. The documents are acquired directly from the webpages of the businesses in question, which publish these reports on their investor relations or sustainability goals page. If these documents are not available however, a request is made by email or telephone for such documents. In some cases, the documents were only available in Dutch, these documents were translated using Google Translate and then corrected for accuracy. The primary nature and direct means of data collection gives this data a high standard of reliability. The following section addresses why this data should be seen as a valid means to test the research question. 18

This study examines the sustainability strategy of a business, at the hand of the strategy documents it publishes for public viewing. Strategy documents are the format through which businesses set out their vision on how they wish to engage in the market as an individual entity (León-Soriano, Jesús Muñoz-Torres, & Chalmeta-Rosalen, 2010). If a business is using BTM techniques in its strategy, this should be visible in such a document. Furthermore, seeing the degree to which businesses have introduced a more collaborative approach in such a historically self-centered document should highlight its true adoption. Both of these factors ensure the validity of using strategy documents as data in this research.

4.2 The Sample An important distinction that must be made in this study is that it aims to research companies that claim to be actively engaged in creating SD, not the FA sector as a whole. This may seem a somewhat vague statement, but hopefully the following explanation will dispel any uncertainties. This study defines businesses active within the Dutch branch FA Organizations for Corporate Social Responsibility (MVO, 2019) as businesses that claim to be actively engaged in creating SD. On the website of this branch organization it is stated that all members are front runners in creating sustainable solutions, with high environmental standards and ethical governance structures (MVO, 2019). These businesses align themselves with the view that the current state of our economy is causing widespread environmental damage, that is harming the possibility of future generations to fulfill their own needs and must therefore be changed (MVO, 2019). Although this is not an all-encompassing sample of businesses with such ideologies, it is a clearly demarcated group of influential businesses attempting to create change in the FA sector. This is therefore a valid group under which to test the adoption of an SD based business strategy. This organization contains 39 members, that are active in a wide range of specializations within the FA sector. However, due to the limited availability of relevant strategy documents, the final sample includes 13 of these companies for analysis. A justification for the exclusion of the other 26 business can be found in the appendix (Appendix A). The businesses that have such documents available seem to be the more established businesses in the sector, causing this report to end up studying a more corporate level approach to sustainability. Even though this is the case, it does allow one to examine the functioning of these businesses, which do claim sustainable credentials, and see whether they, with their extensive means, are integrating a widely available theory on SD into their strategies. Furthermore, it enables the analysis of all the available strategy documents within 19 the sample. This would not have been possible if each business had such documents available, due to the limited nature of a bachelor thesis. Table 4.1 presents a description of the businesses that make up the final sample, with the type of document that is used in the analysis.

Name Specialization Type of document Year published

Arla Dairy farming/processing CSR report 2018

Best Fresh Fruit and vegetable Sustainability strategy report 2017 wholesalers Cono Cheese makers CSR report 2016

Cool Fresh Fruit and vegetable CSR report 2018 wholesaler Coop Supermarket Sustainability strategy report 2018

Dalco Protein specialist CSR report 2015

Delphy Agricultural consultant CSR report 2017

Gulpener Beer brewer CSR report 2017

Jumbo Supermarket CSR report section of Annual 2018 report Nature’s pride Fruit and vegetable Sustainability strategy report 2017 wholesaler Royal A-ware Dairy wholesaler CSR report 2017

Royal Cosun Agro-industrial CSR report 2016 conglomerate Spadel Water CSR report 2015 Table 4.1. Specialization, type and publishing year of the strategy document of the businesses included in the sample. 4.3 Analysis The strategy documents of the businesses in the sample are analyzed using a mix of methods. The main outline of the analysis follows a method for framework analysis set out in a prominent paper published in the journal for Administration and Governance (Srivastava & Thomson, 2009). Srivastava and Thomson (2009) state that their method is most applicable to public and private sector policy research with specific research questions, a limited time frame, pre-designed sample and priori issues. This study does exactly that, by examining the strategy of a set number of organizations, while looking to determine the presence or absence of a certain policy. The process starts with a familiarization of the texts. Each company’s strategy documents are read multiple times and noted on general ideas or trends that become apparent. 20

Second, the relevant information is lifted out of the text. In this study, almost the complete text is put through for further analysis, as the general strategy of the business is the focus of this study. However, sections containing generally irrelevant information, such as why employees enjoyed their jobs or in-depth descriptions of industrial cheese slicing, are excluded. The next step is developing a thematic framework that represents the text through indexing and charting its contents. This research uses a process set out by Graneheim & Lundman (2001), in a seminal paper on extracting conclusions from qualitative data to do this. The relevant sections of each text are examined to extract quotes related to a specific topic, dubbed meaning units. These are labeled to give a condensed meaning unit. The collection of meaning units that relate to the topic in a similar fashion can then be used to create sub-themes and a general theme. These general themes can then be used to display the topics addressed in a text. This process is followed for each document in this research. The outcome of a framework analysis leads to charts of information where one can see how exerts from the text build into overarching themes. These themes should arise naturally while, of course, looking for specific topics related to the research question; it should not be the goal to make the text fit the priori issues developed in the theoretical framework. Having said this, one theme was sought out purposefully in this research: does the document concern the sustainability strategy of a business? This was done to make sure the conclusions drawn from the text can be considered valid. The final step is to reexamine the general text and judge the created themes against the whole. This is done to ensure the themes do represent the text in its entirety and that no sections of the text conflict with the created themes. BTM Concept Action

Strategic Envisioning • Business must collaborate with stakeholders to define the societal issues they want to tackle. • Determine the effects of a business’s operations on the other stakeholders and society in general. • Express the wish to transform society according to sustainability principles. Tactical Networking • Develop strategies with stakeholders to address societal issues. • Develop goals, learning objectives and experiments with stakeholders. Operational Innovation • Create experimental new processes, products, services and financing schemes based on the collaboration with stakeholders. Reflexive Monitoring • Integrate flexible and multi-stakeholder conversation platforms into their business strategy. Table 4.2. Actions that are represented by the four BTM concepts (Loorbach & Wijsman, 2013).

The second step in the analysis is judging the created themes against the four hypotheses based on the BTM framework. Each theme is examined to judge whether they provide evidence to support the four hypotheses, based on reasoning supported by charted data for each strategy document. In this research, evidence is sought for the presence of Strategic Envisioning, Tactical Networking, Operational Innovation and Reflexive Monitoring in each strategy document. It is important to note that these concepts do not have to be named explicitly for them to be present. The actions the terms represent are more important than the use of transition theory jargon. This research will therefore be judging whether the actions described in the BTM framework are present within each strategy document, a summary of these actions can be found in table 4.2. This process, whereby the open analysis is judged against a set of priori issues, is called mapping and interpretation by Srivastava and Thomson (2009). The goal of the analysis is to support or reject H2-H5 and the main hypothesis; together determining to what extent a business uses BTM in its sustainability strategy. Both sections of the analysis are presented per business in chapter four of this research. Having now set out how this research is conducted; the following chapter presents the results.

5. Results

This chapter will put forward the findings of the qualitive framework analysis conducted on the sustainability strategy documents of the 13 business in the sample. The first section, however, explains how each document was deemed relevant to the research question, this is followed by the results presented per business. These results are split into two sections, whereby the first section explains the themes that were extracted from the document, the second judges these themes against the 5 hypotheses set out in the conceptual framework.

5.1 Relevance of documents The first thing that should be said in this section is that every document included in this study is deemed representative of the sustainability strategy of the businesses in question, based upon a single extracted theme. This was either expressed explicitly in the text though the use of sentences such as “the overall sustainability strategy focuses on” (Arla, 2018, p.4) or can be construed implicitly. If this was the case, this was done in opening remarks or introduction of the document, where a commitment to sustainability was put forward, through the description of certain sustainability issues, followed by a statement which showed a business’s intent to help solve these issues. Having fulfilled this necessity, the following 22 sections include a case by case description of the themes present in the strategy documents of each business yet excludes the description of the theme that validates the document as a relevant study document. This lessens the already slightly repetitive nature of this chapter.

5.2 Arla Arla is one of the oldest and largest dairy cooperatives in the world. It is owned entirely by its farmer members and boosts a substantial processing and distribution network (Arla, 2018). The analysis of Arla’s CSR report resulted in four major themes: ‘use collaboration to create strategy’, ‘collaborate to create and implement sustainable solutions’, ‘Practical policies to enhance sustainability’, ‘encourage consumers to purchase healthy products’ (Table 5.1) (Appendix B). The first theme, dubbed ‘use collaboration to create strategy’ was created due to many referrals in the text to collaboration with external parties, mostly research institutes, in the creation of the Arla’s strategy. Firstly, they have developed what they call “science-based targets” (Arla, 2018, p.17) together with external research partners to ensure that Arla’s activities aid in meeting standards set by the Paris agreements. Furthermore, they fund multiple research platforms at Aarhus and Copenhagen University to study the future of sustainable dairy production and use their findings to implement policies that “reduce the environmental and climate impacts” (Arla, 2018, p.3) of dairy production. Furthermore, they base their strategy surrounding the creation of healthy products on a diverse range of stakeholder dialogues. This includes open discussions with customers to having “a group of experts within different fields of nutrition and health critically review our health strategy” (Arla, 2018, p.9). Further examples can be found in Appendix B. The summation of all these points allows one to state that Arla does use collaboration to create and test its sustainability strategy. The second theme that arises from the text is that Arla does ‘collaborate to create and implement sustainable solutions’. Again, indications of this theme are found throughout the text, where cooperation with research institutes, platforms of other businesses, NGO’s and governmental organizations lead to the development of sustainable solutions and the implementation of these solutions together with the organization in question. Examples of this are the cooperation with OECD to improve “human and labour rights, animal welfare and to promote technology and innovation” (Arla, 2018, p.14) around the world and that it has conducted projects with “other large companies within the food industry” (Arla, 2018, p. 16) to research and implement a system to measure carbon sequestration on farm land. Arla is 23 also active in multiple other multi-party projects to reduce food waste and reduce the impact of product packaging. It can be said that the majority of the sustainable solutions proposed in Arla’s CSR report are undertaken with at least one other party. The final two themes: ‘practical policies to enhance sustainability’ and ‘encourage consumers to purchase healthy products’, are created from a multitude of policies that Arla proposes without involving any other actors. They include the introduction of products containing only natural sugars, energy saving technologies or the introduction of sustainable farming techniques. The complete list of examples can be found in Appendix B. Overall, one can state that Arla’s CSR report leans heavily on its wish to collaborate with multiple other parties to create and implement their sustainability strategy while also outlining how it does so internally.

Document Themes CSR report 1. Use collaboration to create strategy 2. Collaborate to create and implement sustainable solutions. 3. Practical policies to enhance sustainability 4. Encourage consumers to purchase healthy products Table 5.1 Themes of Arla CSR report (Arla, 2018)

5.2.1 Arla and BTM Judging the chart of Arla’s themes (Appendix B) against the BTM framework this report finds that one can support H2, H3 and H4; meaning that Strategic Envisioning, Tactical Networking and Operational Innovation are present within the Arla’s sustainability strategy document (Table 5.2). As some, but not all, of the hypotheses are accepted, one can also partially accept H1, meaning that Arla is partially using BTM in its sustainability strategy. H2 and H3 can be accepted on the basis of the first theme extracted from Arla’s CSR report; ‘use collaboration to create strategy’ (Appendix B). This theme shows that Arla is coming together with a range of stakeholders to define the issues related to dairy production. It works with research institutes, governmental bodies and other commercial actors to define the issues related to dairy farming as well collaborating with these parties to develop strategies and experiments to enhance sustainability of the industry. Strategic Envisioning and Tactical Networking are therefore present in Arala’s strategy document. H4 is supported by two themes, ‘collaborate to create and implement sustainable solutions’ and ‘practical policies to 24 enhance sustainability’. Arla’s implementation of sustainable farming practices, use of energy saving technologies and reduction in packaging are linked throughout the report to its collaboration with its stakeholders. Therefore, Operational Innovation is present within Arla’s strategy document. Finally, no evidence is found in the text for the use of multi-party conversation platforms to judge Arla’s sustainability performance, rejecting H5, meaning Reflexive Monitoring is not present within the document. The analysis ends with supporting H2-4 but rejecting H5, we can therefore state that Arla partially uses BTM in its sustainability strategy.

Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is present networking is present innovation is present monitoring is present in the document. within the document within the document within the document. Supported ● ● ● Rejected ● Table 5.2. Hypotheses results of Arla CSR report (Arla, 2018).

5.3 Best Fresh Best Fresh is an internationally active trading and processing business focused on fresh fruit and vegetables. It has been active as a trader for decades but has since 2001 also focused on processing and packaging produce it trades in. The analysis of its Sustainability Strategy Report results in three themes; ‘strategy is linked to specific SDGs’, ‘partnership & collaboration helps BF achieve sustainable goals’ and ‘sourcing & producing sustainable products’ (Table 5.3) (Appendix C). Throughout the text each action or strategy initiative planned or accomplished by Best Fresh group is linked to an individual Sustainable Development Goal (SDG). This can be deducted from sentences such as “each pillar is linked to an SDG” (Best Fresh, 2017, p.5). Each section also includes a detailed description of the SDG that is addressed by actions undertaken by Best Fresh. The second theme ‘partnership & collaboration helps BF meet sustainable goals’ can be seen through Best Fresh groups emphasis on “diversity amongst our companies” and its collaborations with Vers+ and MVO Westland. They do not go into great detail when describing these collaborations, except for naming these collaborations and that these are beneficial to their sustainable goal. Much of the report that addresses this theme is composed 25 of value statements such as “at Best Fresh we believe in strength of diversity and collaborations” (Best Fresh, 2017, p.11). The final theme in this strategy report is linked to Best Fresh groups approach to creating sustainability through ‘producing sustainable products’. Again, these actions are not described in depth, with a number of value statements such as “we strive to create added value in our supply chain whilst maintaining the impact on the environment and communities worldwide to a minimum” (Best Fresh, 2017, p. 4). A few concrete examples are given, relating to ways in which they measure their carbon footprint and their use of renewable energy sources to power their offices and greenhouses. Overall this strategy document remains vague on how Best Fresh aims to attain its sustainable goals.

Document Themes

Sustainability strategy report 1. Strategy is linked to specific SDGs. 2. Partnership & collaboration helps BF achieve sustainable goals. 3. Sourcing & producing sustainable products. Table 5.3. Themes of Best Fresh Sustainability strategy report (Best Fresh, 2018).

5.3.1 Best Fresh and BTM Examining Best Fresh’s theme chart (Appendix C) this report finds that none of the concepts from the BTM framework can be deemed present within the text (Table 5.4). Best Fresh’s strategy defines its approach to solving social issues by framing its activities through an SDG lens. This is not the approach as described by Strategic Envisioning, which states that this definition should be created through stakeholder interaction. Furthermore, even though Best Fresh states that it achieves its sustainable goals through collaboration, no details are given on how this is achieved. Its sustainable sourcing and producing processes are also not linked to this collaborative approach. This leaves no evidence to support any of the hypotheses, leading to a rejection of H1, meaning that Best Fresh does not use BTM in its sustainability strategy. Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is present networking is present innovation is present monitoring is present in the document. within the document. in the document. within the document. Supported Rejected ● ● ● ● Table 5.4. Hypotheses results of Best Fresh Sustainability strategy report (Best Fresh, 2018). 26

5.4 Cono Cono is a cheesemaking business situated in the Beemster polder, one of the most prominent cheese producing regions of the Netherlands. Its CSR report was notably short, only including three pages of text. This resulted in two themes to arise from its contents, ‘meet individual goals’ and ‘broad statements to fulfill goals’ (Table 5.5) (Appendix D). The report starts out by setting out CONO’s goals, which include items such as; “be the greenest by the end of 2020” (Cono, 2016, p.1) and “contribute to the landscape” (Cono, 2016, p.1) The rest of report goes on to give broad statements on how it aims to achieve its goals. Sentences such as “CONO Kaasmakers respects and honors international human rights” (Cono, 2016, p.2) are emblematic of their report. Overall sustainability issues are touched upon but only on the basis of recognizing the issues, and that Cono wishes to address these issues with several simple strategy measure such as; “protect Beemster Polder, a world heritage site” (Cono, 2016, p.2).

Document Themes CSR report 1. Meet individual goals 2. Broad statements to fulfill goals Table 5.5. Themes of Cono CSR report (Cono, 2016).

5.4.1 Cono and BTM Looking at Cono’s theme chart (Appendix D) this report finds that none of the BTM concepts are present within Cono’s sustainability strategy (Table 5.6). Cono sets its strategy around certain goals and puts forward actions it, as an individual entity, will undertake to achieve these goals. This does not correspond with any of the collaborative actions the BTM framework describes. Therefore, this reports rejects H2-5 and rejects H1; Cono does not use BTM in the formulation of its sustainability strategy. Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is present networking is present innovation is present monitoring is present in the document. within the document. within the document. within the document. Supported Rejected ● ● ● ● Table 5.6. Hypotheses results of Cono CSR report (Cono, 2016).

5.5 Cool Fresh Cool Fresh is an international wholesaler of fruit and vegetables. Cool Fresh was the only company where the results of the qualitive analysis drew into question whether or not this document could be seen as a valid representation of the sustainable strategy of the business. Its focus was on growth and creating higher profits for its suppliers, however with the presence of sentences that described Cool Fresh’s wish to be a “responsible partner in society and facilitate its clients to participate in sustainable social projects” (Cool Fresh, 2018, p.2) it is deemed to be sufficiently focused on sustainability to be taken into account. The two themes that arose from the text were, ‘achieve sustainability through meeting regulatory standards’ and ‘engage in stakeholder dialogues to improve CSR strategy in the future’ (Table 5.7) (Appendix E). The first theme was created due to frequent occurrence of statements such as “meet and exceed all applicable (local) governmental requirements, and adhere to local requirements no matter where we do business” (Cool Fresh, 2018, p.2) and “Cool Fresh International bases its company policies on various international social compliance conventions” (Cool Fresh, 2018, p.3). Further emphasis was put on making sure suppliers meet guidelines set up by Cool Fresh. Cool Fresh was not responsible for the sustainable innovation of the products, it was merely up to them to judge whether a supplier was meeting a set list of requirements. An example of one of these requirements is that suppliers must “utilize academic and regulatory organisations to assist in the development of solutions of environmental problems” (Cool Fresh, 2018, p.3). Each requirement is relatively open to interpretation and places the responsibility for action squarely with the supplying parties. The second theme, ‘engage in stakeholder dialogues to improve CSR strategy in the future’, was created from the final section of Cool Fresh’s CSR report, which stipulated that, in the future, stakeholder dialogues with banks, growers and transport service providers would enhance the CSR capabilities of Cool Fresh. Document Themes CSR report 1. Achieve sustainability through meeting regulatory standards. 2. Engage in stakeholder dialogues to improve CSR strategy in the future. Table 5.7. Themes of Cool Fresh CSR report (Cool Fresh, 2018).

5.5.1 Cool Fresh and BTM Judging Cool Fresh’s theme chart against the BTM framework this report rejects H2-5 (Table 5.8). The majority of Cool Fresh’s report is based on meeting environmental and employment regulations and requiring its suppliers to meet further standards, it finds that this is the way Cool Fresh achieves sustainable business practices. Even though stakeholder dialogues are introduced as a way to improve CSR policies, no link is made to joining forces to define social issues, implement solutions or evaluate outcomes. This report therefore rejects H2-5 leading to a rejection of H1, meaning that Cool Fresh does not use BTM in its sustainability strategy.

Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is present networking is present innovation is present monitoring is present in the document. within the document. within the document. within the document. Supported Rejected ● ● ● ● Table 5.8. Hypotheses results of Cool Fresh CSR report (Cool Fresh, 2018).

5.6 Coop Coop is a reasonably large chain of supermarkets that runs as a cooperative throughout the Netherlands. The analysis of their sustainability strategy report led to four themes: ‘promote a healthy life style’; ‘create sustainability through procuring and supplying sustainable products’; ‘minimize environmental impact through waste reduction’; ‘energy efficiency’ and ‘collaborate with stakeholders to inform, build and implement sustainable solutions’ (Table 5.9) (Appendix F). The first theme can be deduced through mission statements, active policies and the way Coop interacts with employees. Phrases such as “we are paying more and more attention to healthy lifestyle” (Coop, 2017, p.22) appear frequently throughout the text and Coop has several projects that promote healthy lifestyle to its customers and employees. The second theme is seen through the description of Coops procurement and advertising initiatives. Their buyer Superunie is “working on sustainable and transparent product chains” (Coop, 2017, p. 35) and the report gives several examples of how this achieved. Furthermore, Coop focuses on supplying meat with certified animal welfare and carbon emissions stickers. For a complete range of examples please view Appendix F. 29

The third theme describes the many actions Coop undertakes to, Minimize environmental impact through waste reduction and energy efficiency. This is achieved through giving examples of such actions; e.g replacing boilers with more sustainable ones and using electric vehicles to transport products. What binds these factors together into a theme is that there are presented as individual actions Coop takes to become more sustainable. Again, refer to Appendix F for a complete range of examples. The fourth theme reads, ‘collaborate with stakeholders to inform, build and implement sustainable solutions’. One complete chapter of the report is filled with the description of the interaction between Coop and multiple different stakeholders, mostly governments and NGOs but also a few businesses, to inform Coops CSR policy and implement these solutions together with the stakeholders. Coop invites guest speakers over to inform its climate change mitigation policy, it works together with animal rights groups to encourage sustainable meat supply and works closely with a group of different parties to facilitate the creation of circular food supply chains. Overall, a large part of Coops sustainability policy is based around collaboration.

Document Themes Sustainability strategy report 1. Promote a healthy life style 2. Create sustainability through procuring and supplying sustainable products 3. Minimize environmental impact through waste reduction, energy efficiency 4. Collaborate with stakeholders to inform, build and implement sustainable solutions Table 5.9 Themes of Coop Sustainability strategy report (Coop, 2017).

5.6.1 Coop and BTM Judging Coop’s theme chart (Appendix F) against the BTM framework evidence can be drawn to support the presence of Strategic Envisioning, Tactical Networking and Operational Innovation, and thus supports H2-4 (Table 5.10). No evidence is found for the presence of Reflexive Monitoring in the text, therefore H5 is rejected. The theme that provides evidence for the support of H2-4 is ‘collaborate with stakeholders to inform, build and implement sustainable solutions’. Coop’s interaction with stakeholders to set standards for sustainable produce, with a particular emphasis on meat products, is a clear example of Strategic Envisioning. Coop has come together with a group of stakeholders to define an issue and sets out goals to achieve improvements with sustainability 30 principles in mind. Furthermore, it collaborates with these stakeholders to set out ways to implement sustainable solutions pertaining to product assortment, waste management and energy efficiency, and, continues to implement them within its own operations. This shows that it engages in Tactical Networking and Operational Innovation. No evidence is found for the integration of multi-party conversation platforms into their strategy however, therefore H5 is rejected. Overall, H2-4 are supported and H5 is rejected, thus H1 can be partially supported, Coop partially uses BTM in its sustainability strategy.

Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is networking is innovation is present monitoring is present in the present within the within the document present within the document. document document. Supported ● ● ● Rejected ● Table 5.10. Hypotheses results of Coop Sustainability strategy report (Coop, 2017).

5.7 Dalco Dalco (2015) is a meat and protein specialist that focuses on producing ready made products for both domestic and international markets. The two themes that are extracted from its CSR report are: ‘develop CSR strategy with stakeholders’ and ‘source and produce healthy and sustainable products (Table 5.11) (Appendix G). Dalco places a significant emphasis on the fact that it creates its CSR strategy together with stakeholders. It outlines how it identifies them, uses their input during the planning stages and adjusts to the wishes of these stakeholders. Dalco is committed mostly to meeting costumer wishes however, and states so explicitly in this this section “we ask our customers what their wishes and needs are and translate these into products and services that our customers need to create value” (Dalco, 2015, p.6). The second theme is built on sections of the text that highlight how Dalco is attempting to provide more sustainable and healthy products. It does so by producing goods with less and salt and sugar and sources raw materials from sustainable producers that do the same (Dalco, 2015). Furthermore, they have implemented many energy saving technologies in their production process and they are front runners in providing vegetarian protein products in Europe. Please see Appendix G for more examples.

Document Themes CSR report 1. Develop CSR strategy with stakeholders 2. Source and produce healthy and sustainable products Table 5.11 Themes of Dalco CSR report (Dalco, 2015)

5.7.1 Dalco and BTM Examining Dalco’s theme chart (Appendix G) this report finds that H2 is supported and H3-H5 are rejected (Table 5.12). Dalco’s efforts to set out its sustainability goals by working with stakeholders to define sustainability issues and goes on to assess its impact on those stakeholders, is an example of Strategic Envisioning. However, Dalco does not use these stakeholders beyond the formulations of its strategy, it does not collaborate to experiment or create new solutions with these stakeholders. The production of sustainable and healthy products is seen as an internal affair, this rejects H3-4. As H2 is supported, H1 is also partially supported, meaning that Dalco partially uses BTM in its sustainability strategy.

Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is present networking is present innovation is present monitoring is present in the document. within the document. within the document. within the document. Supported ● Rejected ● ● ● Table 5.12. Hypotheses results of Dalco CSR report (Dalco, 2015)]

5.8 Delphy Delphy (2017) is an agricultural consultant and research center that advises farmers on vegetable and flower production across the globe. Delphy’s CSR report was relatively short, consisting of 3 pages of text. An analysis of these texts lead to three themes: ‘reach sustainability through a reduction in energy use’, ‘ensure a healthy working environment’, and ‘meeting CSR directives’ (Table 5.13) (Appendix H). The first theme is a based on several sections of the text focusing on how Delpy (2017) reduces its energy use. This was done through housing itself in offices with green energy labels, stimulating the use of electric vehicles in its leasing fleet and encouraging employees to work at home to reduce emissions from transport. The second theme was related to employee health; Delphy does this by offering health checks and conducting regular risks assessments of its working environment. The final theme was built on a section of text that 32 lists of a number of CSR directives Delphy (2017) aims to meet, e.g having a sustainable purchasing policy, prohibiting bribery etc. These are direct statements with little explanation on how Delphy practically implements these directives.

Document Themes CSR report 1. Reach sustainability through a reduction in energy use. 2. Ensure a healthy working environment. 3. Meeting CSR directives. Table 5.13 Themes of Delphy CSR report (Delphy, 2017)

5.8.1 Delphy and BTM Looking at Delphy’s theme chart (Appendix H) this report finds that none of the BTM concepts can be deemed to be present within Delphy’s CSR report: H2-H5 are rejected. The primary focus in the CSR report lies on reducing its energy consumption and meeting CSR directives set out in Dutch law. There is no mention of collaboration with other parties to define or solve issues related to SD. This leads this report to reject H1, Delphy does not use BTM in its sustainability strategy.

Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is present networking is present innovation is present monitoring is present in the document. within the document. within the document. within the document. Supported Rejected ● ● ● ● Table 5.14. Hypotheses results of Delphy CSR report (Delphy, 2017).

5.9 Gulpener Gulpener is a beer brewer that focuses on both mass produced pilsners and small batch special beers. The two themes that arose from Gulpeners CSR report are: ‘believe in independent action’ and ‘create sustainability though actions on CO2 emissions, certification, waste reduction and regional sourcing’ (Table 5.15) (Appendix I). The first theme was created from multiple sections of the text that showed Gulpener’s wish to remain independent; statements such as “we determine our own course. We are free to do what feels right” (Gulpener, 2017, p.22) epitomize this stance on sustainability. The rest of the report follows up on this approach by listing various ways in which Gulpener has reduced CO2 emissions, 33 by improving production facilities and planting a forest, reducing waste and sourcing local goods. It does state that Gulpener sees itself as a proudly local business that is involved with its surroundings, but its sustainable objectives are achieved internally.

Document Themes CSR report 1. Believe in independent action 2. Create sustainability though actions on CO2 emissions, certification, waste reduction and regional sourcing. Table 5.15. Themes of Gulpener CSR report (Gulpener, 2017).

5.9.1 Gulpener and BTM Judging Gulpener’s theme chart against the BTM framework, this report rejects H2-5 (Table 5.16). Gulpener’s clear stance on setting sustainability strategy through acting as an individual, reducing CO2 emissions and reducing waste without consulting other parties, is in direct opposition to the collaborative approach proposed by the four concepts of the BTM framework. Therefore, H1 is rejected, Gulpener does not use BTM in its sustainability strategy.

Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is present networking is present innovation is present monitoring is present in the document. within the document. within the document. within the document. Supported Rejected ● ● ● ● Table 5.16. Hypotheses results of Gulpener CSR report (Gulpener, 2017).

5.10 Jumbo Jumbo is a supermarket chain that is run on a franchise format throughout the Netherlands. The text that was analyzed for this report was the CSR section of its annual report. The two themes that were created based on this text were: ‘individual actions to achieve sustainability goals’ and ‘collaborate with a range of stakeholders to achieve sustainability goals’ (Table 5.17) (Appendix J). The text was split equally along these lines. The first section of the text is a description of all the actions Jumbo has undertaken or planned to undertake to increase the animal welfare status of the meat it 34 provides, increase the range of organic and sustainably produced fruit and vegetables, reduce the environmental impact of the packaging it uses and increase its range of healthy products. Statements such as “In 2018, Jumbo seized upon the national Beter Leven Week of the Dierenbescherming to increase the number of its products that bear the Beter Leven quality mark” (Jumbo, 2018, p.35) show how Jumbo communicates this mission. All the listed goals were addressed in a similar fashion, stating how Jumbo had individually improved its activities relating to each topic. The second section of the text was a long list of collaborations between Jumbo and a range of stakeholders. They worked with NGO’s and governments as well as larger collectives of stakeholders to research and implement sustainable solutions in the food industry. An example of this is their participation in the Green Protein Alliance, a group founded explicitly on TT principles, where they work to “create the so-called protein transition, which seeks a shift from animal to a more vegetable-based food pattern” (Jumbo, 2018, p.37). In each section the goal & actors involved in the collaboration are described, together with implications this has had on Jumbo’s strategy and operations.

Document Themes CSR report 1. Individual actions to achieve sustainability goals 2. Collaborate with a range of stakeholders to achieve sustainability goals

Table 5.17 Themes of Jumbo Annual report (Jumbo, 2018)

5.10.1 Jumbo and BTM Jumbo’s thematic charts leads this report to accept H2-4, finding evidence for the presence of Strategic Envisioning, Tactical Networking and Operational Innovation in the text (Table 5.18). This was found in the makeup of the second theme: ‘collaborate with a range of stakeholders to achieve sustainability goals’. Jumbo takes steps to define social issues within multiple stakeholder collectives related to the food industry, and then collaborates to implement these solutions within the industry and within Jumbo’s operations. This process includes supplying more sustainable products guided by NGO’s, creating innovate packaging solutions and collaborating with stakeholders to create efficient transport solutions. No mention is made of using multi-party conservation platforms to judge these actions however. This rejects H5, Reflexive Monitoring is not present within this report. Overall 3 hypotheses are supported, meaning H1 is partially supported, Jumbo partially uses BTM in its sustainability strategy. 35

Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is present networking is present innovation is present monitoring is present in the document. within the document. within the document. within the document. Supported ● ● ● Rejected ● Table 5.18. Hypotheses results of Jumbo Annual report (Jumbo, 2018).

5.11 Nature’s pride Nature’s pride is an international fruit and vegetable wholesaler that focuses on supplying exotic fruits to European markets. Nature’s pride’s sustainability strategy lead to two overarching themes: ‘the strategy is based around four core objectives’ and ‘strategy is set around goals to meet by a certain time’ (Table 5.19) (Appendix K). The first theme is a result of Nature’s pride’s clear-cut strategy. It focuses on four pillars; 100% social compliance, development of communities, reduce environmental impact and reduce food waste. It goes into limited detail about what these goals mean. Simply stating them in an infographic, with a short explanation such as “Development of communities through education & knowledge sharing” (Nature’s pride, 2016, p.1). The second theme connects to the way it displays meeting those goals. Each goal is set on a timeline, goals to be achieved by 2019 and goals to be achieved by 2023. Short statements are used to explain each goal, for example in the food waste category “2019 Keep >50% of loss avocados for human consumption, Valorise maximum of 2.5% avocado loss as low value” (Nature’s pride, 2016, p.4). For a full list of goals on each time line please go to Appendix K.

Document Themes Sustainability strategy report 1. The strategy is based around four core objectives. 2. Strategy is set around goals to meet by a certain time. Table 5.19. Themes of Nature’s pride sustainability strategy report (Nature’s pride, 2018).

5.11.1 Nature’s pride and BTM Judging Nature’s pride’s theme chart (Appendix K) against the BTM framework this report finds that none of the four concepts are present in the text. The four core objectives that guide Nature’s pride’s strategy are formulated without the input from any other party. They are also achieved without collaboration or communication with external stakeholders. Therefore, H1 is rejected, Nature’s pride does not use BTM in its sustainability strategy. Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is present networking is present innovation is present monitoring is present in the document. within the document. within the document. within the document. Supported Rejected ● ● ● ● Table 5.20. Hypotheses results of Nature’s pride sustainability strategy report (Nature’s pride, 2018).

5.12 Royal A-ware Royal A-ware is a dairy processing business, which supplies milk & cheese across Europe. Their CSR report can be split into three distinct themes: ‘supply chain sustainability’, ‘meeting demand for different milk streams’ and ‘achieving sustainability by using and improving efficient water, energy and waste disposal processes’ (Table 5.21) (Appendix L). The first theme, ‘supply chain sustainability’, was created due to its continual focus on supply chain shortening and optimization. Statements such as “Considering the entire chain Royal A-ware aims to organize its chains as efficiently as possible. After all, shorter chains lead to fresher products, greater transparency, and more sustainability” (Roya A-ware, 2017, p.1) show this. Further on in the text, sustainability is constantly linked back to optimizing the entire chain through specific adjustments, such as transport logistics and supplier choices. The second theme shows Royal A-wares focus on developing different types of milk, or milk streams as they call it. Each milk stream is described in detail, as well as touching upon why some streams are more sustainable than others. An example of this is “Organic milk comes from cows that are raised according to organic farming methods” (Royal A-ware, 2017, p.3). This is done for each stream and composes a large section of the CSR report. The final theme, ‘achieving sustainability by using and improving efficient water, energy and waste disposal processes’ is found in a list of examples given throughout the paper on how Royal A-ware does this. Examples of efficient lighting and cooling techniques are described as well as interviewing those responsible for waste management at its processing plants. The trend in this text was to interview those responsible for each process, let them 37 explain the environmental benefits of what they were implementing, or planning to implement in the future.

Document Themes CSR report 1. Supply chain sustainability, Meeting demand for different milk streams. 2. Achieving sustainability by using and improving efficient water, energy and waste disposal processes. Table 5.21. Themes of Royal A-ware CSR report (Royal A-ware, 2017)

5.12.1 Royal A-ware and BTM Judging Royal A-ware’s theme chart (Appendix L) against the four BTM concepts, this report rejects H2-5. Royal A-ware plans to achieve sustainable goals by supplying certain sustainable milk streams and introducing efficient water, energy and waste disposal systems. These solutions are implemented without consultation or collaboration with other stakeholders from the dairy industry or society as a whole. Therefore, H2-5 are rejected, leading this report to reject H1, Royal A-ware does not use BTM in its sustainability strategy (Table 5.22). Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is present networking is present innovation is present monitoring is present in the document. within the document. within the document. within the document. Supported Rejected ● ● ● ● Table 5.22. Hypotheses results of Royal A-ware CSR report (Royal A-ware, 2017)

5.13 Royal Cosun Royal Cosun is an agricultural conglomerate that includes multiple large vegetable production and processing businesses. The analysis of this CSR report leads to five themes: ‘Royal Cosun strategy is developed by executives, a of group owned businesses and external research institutes’, ‘growth is key to Royal Cosun’s strategy’, ‘businesses use crop registration systems’, ‘SVZ collaborates to create & implement sustainable water and soil solutions’, and ‘focus on individual actions to reduce waste, water use and CO2 emissions’ (Table 5.23) (Appendix M). 38

The first theme is derived from the section of the text that describes the slightly more complex process through which Royal Cosun develops its CSR strategy. It starts by describing all the business involved in the conglomerate and how they cooperate with varying research institutes. The responsibility for final strategy does lie with the “Board, with the Supervisory Board overseeing the policy´s implementation by the Executive Board” (Royal Cosun, 2016, p. 8). “However, each business group directors are responsible for setting and implementing their own policies” (Royal Cosun, 2016, p. 8) but is checked by the central CSR platform at Royal Cosun. The second theme describes how Royal Cosun aims to reach its sustainable goals. It focusses on the need to provide growth and profits to finance further innovation in sustainability. This is exemplified by phrases such as “Profitable growth is a means to create value. We have prioritized organic growth in our core activities in order to retain or even increase our market share and growth through the innovation of sustainable processes” (Royal Cosun, 2016, p.5). Growth is mentioned multiple times as the way towards sustainability in the future. The third theme was created to represent the large portion of the text which concerns crop registration systems. Each independent company has its own systems to increase crop output while decreasing the need for chemical fertilizers and, so, increase soil fertility. Each member has its own way of implementing these systems and is responsible for doing so. Suiker Unie for example is “paying a premium of €250 to every farm that enters its data into its system” (Royal Cosun, 2016, p.14). Royal Cosun sees the use of these systems as a vital tool to decrease its uses of fertilizers and pesticides, and as a major benefit to its sustainable goals. The fourth theme relates directly to the activities of SVZ, a daughter company, and its collaborative efforts. It summarizes its activities thusly; “To safeguard the harvest and make responsible use of the soil and fresh water, been partnering with major food manufacturers, international retail chains, NGOs and local stakeholders for several years” (Royal Cosun, 2016, p.13). Further on the text describes how SVZ implements the knowledge created through these collaborations, to help strawberry farmers in Poland and Spain prepare for the possible impacts of climate change. The entire section is focused on how SVZ is creating knowledge together with stakeholders and shares this knowledge with farmers from whom it buys strawberries. The final theme in the Royal Cosun report, ‘focus on individual actions to reduce waste, water use and CO2 emissions’ is created based on the long list of technical 39 improvements Royal Cosun has introduced to achieve these goals. One example reading “Duynie Ingredients sites generates electricity using biogas and applies the residual heat to dry its products. Using the residual heat in this way has cut natural gas consumption” (Royal Cosun, 2016, p.17). For a full list of solutions please refer to Appendix M. The general trend in the text is that Royal Cosun is continually showing how it has tackled sustainability issues through the use of technical innovations. Document Themes CSR report 1. Royal Cosun strategy is developed by executives, a of group owned businesses and external research institutes. 2. Growth is key to Royal Cosun strategy. 3. Business use crop registration systems. 4. SVZ collaborates to create & implement sustainable water and soil solutions. 5. Focus on individual actions to reduce waste, water use and CO2 emissions. Table 5.23. Themes of Royal Cosun CSR report (Royal Cosun, 2016).

5.13.1 Royal Cosun and BTM Judging Royal Cosun’s theme chart against the BTM framework, this report finds that H2-4 are supported; Strategic Envisioning, Tactical Networking and Operational Innovation are present within its CSR report (Table 5.24). The evidence for this can be found in Royal Cosun and its daughter company’s use of stakeholder collectives to define its sustainable goals. Even though Royal Cosun does so to a certain extent, by including external research institutes in the process, operations within the daughter company SVZ provides definite evidence that this is the case. Their collaboration with “food manufacturers, international retail chains and NGOs” (Royal Cosun, 2016, p.13) to build and implement sustainability strategy, to ensure climate change resilient strawberry production, is a definitive example of a business that combines forces with other parties to explore, experiment and implement innovative sustainable solutions within the FA sector. However, again, no mention is made of evaluating all these actions by integrating multi-party conversation platforms into the process, rejecting H5. Seeing as H2-4 are supported and H5 is rejected, H1 is partially supported, Royal Cosun is partially using BTM in its sustainability strategy.

Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is present networking is present innovation is present monitoring is present in the document. within the document. within the document. within the document. Supported ● ● ● Rejected ● Table 5.24. Hypotheses results of Royal Cosun CSR report (Royal Cosun, 2016).

5.14 Spadel Spadel is a producer of mineral water and soft drinks while managing a set of fresh water springs throughout Belgium, The Netherlands and the UK. An analysis of its substantial sustainability strategy resulted in six overarching themes: ‘strategy is developed with significant input form stakeholders’, ‘Spadel collaborates with multiple partners to reach Sustainable goals’, ‘Spadel is working to use all-natural ingredients’, ‘Spadel aims to Reduce material consumption & CO2 Emissions’, ‘Spadel aims to use sustainable water management practices’ and ‘Spadel is engaged in various charity organizations’(Table 5.25) (Appendix N). These are explained bellow. The first theme, ‘strategy was developed with significant input form stakeholders’, is created using multiple different sections of the report. Firstly, an “extensive stakeholder consultation round was held in Belgium and the Netherlands to validate and supplement the sustainability strategy developed in 2010” (Spadel, 2016, p.12) is one example where Spadel’s use of external stakeholders is displayed in the text. Spadel also uses stakeholder dialogues with external experts to guide its approach to natural ingredients and uses a range of NGO’s to inform its biodiversity supporting strategy (Spadel, 2016). Please see the complete list of parties involved in Appendix N. The second theme is a natural follow up to the first, it shows how Spadel continues to take a collaborative approach when implementing sustainable solutions based on its strategy. The partnership that takes up a majority of the text is between Spadel and Beeodiversity, a company specialized in measuring biodiversity using bees. This collaboration also plays a vital role in Spadel’s other partnerships with Belgium’s government in creating a national park around its springs. Another example of this collaborative approach is Spadel’s participation in the “Flemish governments green deal for circular procurement” (Spadel, 2016, p.11) where it joins a number of other stakeholders in exploring ways to introduce circular economy principles into the economy of the region. Again, please find a complete list of Spadel’s collaborations in Appendix N. The high number of different examples and its 41 reoccurrence throughout the text, emphasizes that Spadel truly believes that sustainability issues should partly be solved through communal action. The third theme pertains to Spadel’s wish to use all-natural ingredients in their products. This section of the text includes explanations on how naturalness is defined, and how this definition is implemented in the creation of several different soft drinks. It concludes with the statement that “Spadel intends to further refine its naturalness matrix in the future by conducting regular monitoring of naturalness via dialogue with stakeholders and checking new legislation” (Spadel, 2016, p. 6), linking the first three themes together. The fourth theme is, ‘Spadel aims to reduce material consumption & CO2 emissions’. Just as is the case in other documents, this theme can be found in the text through Spadel’s description of technical solutions it has introduced to solve sustainability issues. These include multiple improvements it has made to its bottling plants and effort to use recycled plastics in Spadel’s products. These improvements are explained, and their impacts are made clear with the use of metrics on CO2 emissions and raw material use. The fifth theme is one that seems quite essential in a mineral water business, namely that Spadel has implemented sustainable water management practices into its strategy. This theme is summated in the sentence “Sustainable management of the 48 springs also means that Spadel never extracts more water than the quantity provided annually by nature through rain and snow” (Spadel, 2016, p.14). The rest of text goes on to explain specific steps Spadel takes to ensure that this is the case. The final theme that can be extracted from Spadel’s sustainability strategy is that it is active in multiple charitable efforts in the region. Some of these could be seen as under cover marketing, providing teachers with educative resources to teach healthy hydration for example. However, the other projects Spadel supports are focused on broader charitable goals, such as nature conservation and litter prevention. The final section of Spadel’s sustainability strategy report is dedicated in its entirety to the charities Spadel supports. Document Themes Sustainability strategy report 1. Strategy is developed with significant input form stakeholders. 2. Spadel collaborates with multiple partners to reach Sustainable goals, 3. Spadel is working to use all-natural ingredients. 4. Spadel aims to Reduce material consumption & CO2 Emissions. 5. Spadel aims to use sustainable water management practices. 6. Spadel is engaged in various charity organizations. Table 5.25. Themes of Sustainability strategy report (Spadel, 2016).# 42

5.14.1 Spadel and BTM Judging Spadel’s theme chart against (Appendix N) the BTM framework, this report finds that H2-4 are supported; Strategic Envisioning, Tactical Networking and Operational Innovation are present within its sustainability strategy report (Table 5.26). Theme 1 provides clear evidence for the presence of Strategic Envisioning within Spadel strategy document. This theme shows that Spadel uses a range of government and NGO actors to inform and guide its policy aimed at increasing biodiversity and sustainable production. Evidence for the presence for Tactical Networking and Operational Innovation can be found within themes 2, 4 and 5. These themes are created based on examples in the documents where Spadel first sets out a strategy to tackle a social issue with a stakeholder (its work with Beeodiversitry for example) and goes on to implement solutions with a group of stakeholders. Other examples of this activity are its involvement in circular supply chain and water management initiatives set up by the government and its implementation of practices set up by WRAP to reduce plastic pollution. However, just as in all other cases, no support was found for H5. Therefore H1 can only be partially supported, Spadel partially uses BTM in its sustainability strategy.

Hypotheses H2- Strategic H3- Tactical H4- Operational H5- Reflexive envisioning is present networking is present innovation is present monitoring is present in the document. within the document. within the document. within the document. Supported ● ● ● Rejected ● Table 5.26. Hypotheses results of Sustainability strategy report (Spadel, 2016).

Having now presented the results of the framework analysis of the 13 businesses the sample, the following section will discuss these results. What can be learned from these findings, and how can this be used to further the field of Transition Theory?

6. Discussion & Conclusion

In the previous section we have investigated the sustainability strategy documents of the 13 businesses in the sample. This chapter will discuss these results and go on to explain to what extent businesses, engaged in creating SD in the Dutch FA sector, are using BTM in their sustainability strategy. First, however, in order to prevent making any unsubstantiated claims, this chapter will discuss the limitations of the research. This will be followed by a 43 discussion of the main findings of this research, accompanied by recommendations for future research based on these findings. This section is rounded off by putting forward a conclusion.

6.1. Limitations The first limitation that should be mentioned, is that choosing to take the CSR network as a general sample limits the applicability of the conclusions gained from this report. There are many other businesses active within the Dutch FA sector, that are similarly interested in creating SD, that are not members of this group (Smits et al., 2019). The CSR network requires businesses to pay membership fees and seems to be mostly inhabited by firmly established players in the field, not innovative novel parties. However, limiting as this may be, the results to this study do give relevant insight into these prominent businesses within the Dutch sustainable FA sector. The second limitation is caused by the research design. Choosing to study only the strategy documents made available by each business, instead of doing in depth research into the actual day to day functioning of a select number of businesses, might lead to false negative results. Certain businesses might be actively using BTM techniques in their daily practices but not have them included in the documents they publish for public viewing, or have such a document available at all. The same can be said for possible false positives. Businesses could simply claim that they are actively collaborating with stakeholders in their policy documents as a form of greenwashing, outwardly communicating a policy looked upon favorably by the Dutch government, yet internally taking no such action. However, as this study is looking into a topic so heavily based in strategic decision making, using the document that is designed to translate such strategy to the public is deemed an academically valid approach. Furthermore, it allows for the inclusion of a larger number of businesses in the sample, compared to conducting a study based on in-depth interviews for example, and so says more about the current state of the sustainable FA sector as a whole. Having now set out the limitations to this research, the following section will summarize and discuss the results of this study.

6.2 Utilization of BTM When studying the relevant documents of the 13 businesses in the sample, it was found that Arla, Coop, Dalco, Jumbo, Royal Cosun and Spadel all use a collaborative approach when they set their sustainability strategy. They work closely with stakeholders to define the sustainability issues they wish to tackle and take into account what effect they have 44 on their stakeholders and society in general. Allowing this report to conclude that 6 of the businesses in the sample do use Strategic Envisioning when starting their journey towards implementing sustainable solutions, so supporting H2 for all of these businesses. All of the companies in this group, except for Dalco, go on to use this collaborative approach to create strategy with certain stakeholders and then implement sustainable innovations based on these collaborations. Clear examples of this are Spadel’s collaboration with BeeOdiversity and the Belgian government to create biodiversity and Coop’s partnership with multiple NGO’s to increase animal welfare. The creation and implementation of sustainability strategy between multiple parties allows this report to conclude that five of the businesses within the sample are actively using Tactical Networking and Operational Innovation in the formulation of their strategy, supporting H3 and H4. However, this is where the utilization of BTM by business in the sample ends. None of documents in the sample provided evidence for use of multi-party conversation platforms to evaluate sustainability performance, so rejecting H5. This means that these five businesses are only partially using BTM in the formulation of their sustainability strategy, only partially supporting H1.

H1: The business uses Business Transition Management in its sustainability strategy. H2: Strategic envisioning is present within the document. H3: Tactical networking is present within the document. H4: Operational innovation is present within the document. H5: Reflexive monitoring is present within the document. Hypothesis tested H2 H3 H4 H5 H1 Result Rejected Supported Rejected Supported Rejected Supported Rejected Supported Rejected Partially Supported supported Arla ● ● ● ● ● Best Fresh group ● ● ● ● ● Cono Kaasmakers ● ● ● ● ● Cool Fresh ● ● ● ● ● Coop ● ● ● ● ● Dalco food ● ● ● ● ● Delphy ● ● ● ● ● Gulpener ● ● ● ● ● Jumbo ● ● ● ● ● Nature’s pride ● ● ● ● ● Royal A-ware ● ● ● ● Royal Cosun ● ● ● ● ● Spadel ● ● ● ● ●

Table 6.1. Summary of results for H1-5. 45

6.3 Absence of Reflexive Monitoring The absence of Reflexive Monitoring in the sample is an important distinction to make. According to TT, Reflexive Monitoring is an important process, through which the enhanced learning capabilities of the group of stakeholders manifest itself. This process where stakeholders come together to continually asses their own performance, the performance of the collaborations and to share knowledge on sustainable innovations are instrumental in breaking the inertia of the current unsustainable societal regime. This process creates a network that is flexible and capable of resolving new issues as they arise, maintaining the fluidity that is needed to address the complex issue of SD.

6.3.1 Recommendations The absence of Reflexive Monitoring in this sample sends an important message to actors invested in creating societal transitions. According to this research, an important part of the process is not being implemented by businesses in the FA sector. Determining the cause for this result is in need of further research, as the limited nature of this study does not allow one to judge why this is the case.

6.4 Bi-partisan versus network collaborations A second important distinction that can be distilled from these results is that the type of collaboration present in the sample can be split into two categories: bi-partisan collaboration or network collaboration. Arla, Coop, Dalco, Jumbo, Royal Cosun and Spadel all take part in bi-partisan collaboration, where they work with one other stakeholder in particular to create or implement sustainable innovations. Examples of this are Arla and Royal Cosun inviting individual research institutes to advise them on their sustainability strategy or Spadel’s work with WRAP to reduce the amount of plastic waste they produce. The defining feature here is that businesses are inviting others to take part in their own activities. The more networked type of collaboration involves the business taking part in external networks aimed at creating SD. Only Arla, Jumbo, Royal Cosun and Spadel provide evidence for being active in such networks. Here, the business joins with others to communally devise sustainable innovations within the FA sector. Examples of this are Jumbo’s activity within the Green Protein Alliance and Arla’s work with other multi nationals and researchers to create means to measure carbon sequestration on farmland.

6.4.1 Recommendations This distinction creates another interesting avenue for transition theory research. According to traditional TT, businesses should be taking part in wide groups of different stakeholders to most effectively create SD, yet what is the effect of businesses creating networks where they themselves are the center?

6.5 Absence of BTM When looking at the range of results, one can see that of the 13 businesses in the sample, 7 do not use BTM in the formulation of their sustainability strategy. This report finds that these businesses set their sustainability strategy along two distinct lines; either they frame their strategy according to distinct goals they wish to meet, or, they frame their strategy according to the sustainable innovations they have introduced to their business operations. Cool Fresh, Cono kaasmakers, Delphy and Nature pride fall within this first group. These businesses set their strategy according to meeting predefined CSR directives, based on Dutch law or international agreements, and apply these directives to their particular industry. Gulpener, Royal A-ware and Best Fresh fall within the second group; their strategy documents are filled with examples and plans to introduce innovative sustainable solutions into their business operations. Both of these options, however, take an independent approach to creating SD within the Dutch FA sector. In most cases this is done implicitly, by not mentioning any other stakeholder or party in their strategy document. Gulpener, however, takes independence as a key point to their success; freedom to do what they want allows them to create truly innovative solutions (Gulpener, 2018).

6.5.1 Recommendations The difference between this group and other businesses, is that collaborative goal setting and solution implementation does not play a part in their strategy. This is an important signal for Dutch policy makers. According to this study, a significant group of the established businesses within the sustainable Dutch FA sector are not using ideas on collaboration in their strategy, excluding something that the government sees as vital in transforming the industry. However, as set out in the limitations, the small and subjective nature of the sample used in this research diminishes the applicability of these results. Further research is therefore needed to establish whether this is really the case. However, basing itself on the fact that these businesses are considered some of the major players in the sector, their focus on individual action does create an important possibility for testing the premises of transition theory. Are 47 these companies more or less successful in aiding the FA sector transition towards sustainability than those that do collaborate actively? Having now discussed the main findings of this research the following section will present a conclusion.

6.6 Conclusion Acknowledging the fact that the Dutch government has set out to use transition theory to fundamentally change the functioning of the Dutch food system, this thesis set out to test to what extent businesses, that are actively engaged in creating SD in the Dutch FA sector, are using Business Transition Management in their sustainability strategy. To do this, the sustainability strategy documents of 13 businesses, members of the FA network for CSR, were subjected to a framework analysis. The results of this analysis are that 6 of the 13 businesses are partially using BTM in the formulation of their sustainability strategy, 7 are not. This is a clear signal to the Dutch government that a number of significant businesses in the Dutch FA sector are not implementing policies that the government sees as vital to achieving SD in the sector. This report calls for further research into this finding. Furthermore, this report finds that of the business that do use BTM, none have implemented BTM in its entirety. Reflexive Monitoring is not present in any of their strategies. This process is vital in creating the adaptive and evolutionary processes described by TT as the key to forcing a societal transition. Further research is needed to understand if this is really the case, and why this is occurring. Finally, this report finds that there is a defined difference in the way that businesses use collaboration to create sustainable innovations. All businesses where BTM is present use bi-partisan collaboration to aid in the creation of their sustainability strategy, where the focus lies truly on the operations within the businesses. However, others also join into Multi party networks, where the focus lies on creating sustainable solutions for the network as whole, something that corresponds more with ideas proposed within TT. What is the effect of businesses placing themselves in the middle of a network instead of the joining larger networks? To conclude, Business Transition Management is being put into practice by businesses engaged in creating Sustainable Development within the Dutch FA sector. However, this report shows that many also do not, and that those that do are not implementing it fully. This leaves many questions for the Dutch government and transition theorists to answer, if the Dutch FA sector is to be led through a sustainable transition.

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Mulder, M., & Biemans, H. J. (2018). Agricultural education in the Netherlands: from crystallizing to dissolving?. Journal of Agricultural Education and Extension, 24. 1-5. https://doi.org/10.1080/1389224X.2017.1413742 MVO. (2019 May 5th). MVO network food & agribusiness. Retrieved from https://mvonederland.nl/netwerken/mvo-netwerk-food-agribusiness/deelnemers Nature’s pride. (2016). Sustainable business plan. Maasdijk: Author. Retrieved from https://www.naturespride.eu/uploads/pdfs/Sustainable_Business_Plan_2023_EN_01.p df Ottens, M., & Edelenbos, J. (2019). Political leadership as meta-governance in sustainability transitions: A case study analysis of meta-governance in the case of the Dutch national agreement on climate. Sustainability, 11(1), 110. Ploumen, E. M. J. (2016). Maatschappelijk verantwoord ondernemen. Brief van de minister voor buitenlandse handel en ontwikkleingssamenwerking and de Voorzitter van de Tweede Kamer der Staten-Generaal. Den Haag: Tweede Kamer. Retrieved from https://www.tweedekamer.nl/kamerstukken/brieven_regering/detail?id=2016Z17925& did=2016D368600 Rotmans, J., Kemp, R., van Asselt, M., Geels, F. W., Verbong, G. P. J., Molendijk, K., & Van Notten, P. (2001). Transitions & Transition management: The case for a low emission energy supply. Maastricht: ICIS. Retrieved from https://research.tue.nl/nl/publications/transitions-amp-transition-management-the-case- for-a-low-emission Rotmans, J., Kemp, R., & Van Asselt, M. (2001). More evolution than revolution: transition management in public policy. Foresight, 3(1), 15-31. https://doi.org/10.1108/14636680110803003 Royal A-ware. (2017). CSR Annual report 2017. Almere: Author. Retrieved from https://www.royalaware.com/download/1380/Afbeeldingen/MVO/EN_ANK0707_BR _MVOjaarverslag_2017_EN_04.pdf Royal Cosun. (2016). Sustainability report. Breda: Author. Retrieved from https://www.annualreport-cosun.com/corporate-social-responsibility/ Silva, A., Rosano, M., Stocker, L., & Gorissen, L. (2017). From waste to sustainable materials management: Three case studies of the transition journey. Waste management, 61, 547-557. https://doi.org/10.1016/j.wasman.2016.11.038

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Appendix Appendix.A. Table A.1. Table of businesses excluded from the sample, with reasoning. Business Reason for exclusion Axioma No document available Bisschopsmolen No document available CO2 operate No document available De versfabriek No document available Ecostyle No document available Eosta No document available Harries b.v Out of business ICCO Not for profit organization Intertaste Out of business ISC No document available Jaguar fresh compay No document available Koppert cress No document available Masion Blanche No document available Meyn food processing No document available Nethwork Out of business PHC No document available Smiley food Kenia Out of business SNV Not for profit organization Soil & more Not for profit organization Solidaridad Not for profit organization Special fruit No document available Super Unie No document available Dutch weed Burger No document available The Rock group No document available Total produce No document available Van Oers No document available

Appendix B Please note that the colors in the chart do not have a specific meaning, they are merely in place to help distinguish between different themes. Table B.1. Thematic framework Chart for Arla (2018). Meaning unit Condensed meaning unit Sun-theme Theme Opening remarks by the Chairman Jan Toft Horgard Sustainable dairy production is top of the agenda in Arla, Stating Arla’s Commitment to Commitment to and will continue to be so for the foreseeable future. The environmental footprint of dairy farming was also sustainable dairy production sustainability Commitment to increasingly debated among consumers during the year. solving In 2019, we will go further towards the new ambitious targets beyond 2020, set by Arla’s management He is looking forward to furthering Commitment to sustainable and Board. I am looking forward to the discussions about how we can develop our dairy production in a Arla’s social and sustainable goals, sustainability issues. responsible and sustainable way, including milk quality and animal welfare, while, importantly, also allowing while remaining profitable for farmers to continue to invest in the development of their business. farmers. This report will give you an insight into how our efforts, contribute to our corporate responsibility This report gives insight into Arla’s Sustainability strategy commitments and our overall mission. “To secure the highest value for our farmers milk while creating CSR efforts. opportunities for their growth.” Opening remarks by the CEO Peter Tuborg. During 2018, public awareness of climate change increased in Arla’s is commited to answering the Sustainability strategy intensity and the urgency to act continues to build. At Arla, we are committed to accelerating the increased public attention for climate transition to sustainable dairy production and building confidence in dairy as part change. It is looking to accelerate the of a healthy and sustainable diet. transition of the dairy production towards sustainability. It is, however, obvious that Arla, as a major dairy farming cooperative, needs to improve further. In October The IPCC reports and COP24 both Recognition of 2018, UN’s Intergovernmental Panel on Climate Change (IPCC) released a report that calls for drastic call for increased action from the sustainability issues action between now and 2030. At EU and national government levels climate strategies have been the dairy industry. main focus of discussions throughout the year. At the COP24 in December, a range of measures to make the Paris Agreement operational in 2020 were agreed. To accelerate our transition to sustainable dairy farming and production, we will be rolling out our new A new strategy will be released by Sustainability strategy environmental strategy in 2019. It focuses on better climate, clean air and water and more nature. It is Arla in 2019 to help the dairt industry guided by science based targets in line with planetary boundaries and will replace our current environmental transition towards sustainability. strategy towards 2020. Our overall sustainability strategy focuses on the three areas on which we have the greatest impact and on Arla’s sustainability strategy focuses Sustainability strategy which we can make the most important contributions to delivering UN’s Sustainable Development Goals: on increasing access to dairy Increase access to dairy nutrition, Inspire good food nutrition, inspire good food habits, habits, and Improve the environment for future generations. and improve the environment Being a cooperative with a collaborative mindset Arla has already come a long way and are well prepared to Linking a collaborative mindset to Collaboration mindset continue our contribution to making dairy production even more sustainable. sustainability Use We have strong collaborations with the scientific community and, together with Aarhus university, have Arla collaborates with the scientific Collaboration with collaboration to established a professorship and a five year research project investigating how milk production can become community, creating a research research organizations create strategy more sustainable. The target is to find solutions to key challenges in dairy production, looking into the project with Aarhus university to find possibilities to reduce the environmental and climate impacts while delivering healthy products to a growing ways in which milk production can population. become more sustainable. 55

Together with external experts we have developed Arla’s Science Based Targets, which is an increasingly With external expert Arla has Collaborate with used approach to take responsibility for achieving the Paris Agreement ensuring a maximum temperature developed science based targets to research organizations increase below 2 degrees Celsius. In November, we sent our committed targets to SBTI (Science Based help meet goals set by the Paris Targets nitiative) agreement. As part of our constant work to improve our products, we invited a group of experts within different fields of Invited a group of experts in nutrition Collaborate with nutrition and health to critically review our health strategy. The objective was to further strengthen the validity to review their health strategy. experts to create of the strategy and to propose changes or adaptations. strategy Furthermore, the review indicated that the strategy would benefit from an increased level of transparency in Experts advised an increasing Collaborate with relation to consumer brands. Work now continues to further improve our health strategy transparency to customers experts to create strategy Our pilot consisted of five Arla customers who have engaged in a close dialogue with us on our approach to Arlas pilot included dialogue with Collaborate with drive sustainable dairy farming. The goal is to find a model that captures that work in a robust and rational customers to is to find customers to create manner, for the collective benefit of our customers, Arla and other suppliers of responsible dairy products. a model that captures that work in a strategy robust and rational manner, for the collective benefit of our customers, Arla and other suppliers of responsible dairy products The experts pointed out that one of the strengths is that the strategy has a preventive mindset and focuses on Experts approved of the preventive Collaborate to create good food habits and the role our diet plays in relation to health. mindset of the policy. strategy True to the DNA of the cooperative mindset, Arla collaborates with farmers around the world to support Arla has a cooperative mindset. They Collaborate to share local dairy industries. Examples of this include our project in Nigeria, focusing on the development of a work together with international knowledge globally Collaborate to sustainable dairy value chain, and our involvement in China, where Arla is working together with local partners to share expertise across create and farmers, sharing our expertise in dairy farming and improving herd health. More than 1,000 farmers have Nigeria and China. implement already been involved in these activities. sustainable Some of the examples include our engagement in Nigeria, supporting the local dairy industry and creating Arla’s acitivies in Nigeria and Collaborate to share solutions opportunities for local farmers, and our social enterprise programme in Bangladesh, generating jobs for female Bangladesh are examples of sharing knowledge globally micro-entrepreneurs selling Arla’s affordable nutrition in rural areas. knowledge We collaborate with several stakeholders within health and nutrition to enhance our knowledge and to jointly Arla collaborates with several Collaborate to create develop new solutions that will bring benefits to our consumers. stakeholders to enhance knowledge solutions and create solutions pertaining to nutrition. The public-private partnership in nutrition research – Arla Food for Health – in cooperation with Copenhagen Arla is part of group, including two Collaborate to create and Aarhus University in Denmark has continued its studies of the health effects of dairy, dairy universities to study the effect of knowledge ingredients and dairy’s role in a balanced diet. dairy on health and creating health diets. In 2018, the partnership launched its third open research call to search for research projects that will deliver There are 10 projects currently Collaborate to create insights into how dairy and dairy components can be part of the solution to deliver health and wellbeing running on the effects of dairy on solutions for people of all ages. Currently 10 different research projects are ongoing, and the initial results health. were published in 2018. At Steno Diabetes Center, Aarhus University Hospital, Denmark, a new university professor position in Arla has partly financed a Diabetes Collaborate to create nutrition has been created, with support from Arla. The position will support the investigation of the research position at Aarus university knowledge relationship between nutrition and health in diabetic and pre-diabetic individuals and contribute to further 56

improvement of public health. In Sweden, we have collaborated with a municipality and two high schools in a socio-economically challenged Arla collaborated with the Collaborate to create area to serve breakfast in the classroom during morning lessons. The initiative aimed to give insights into the municaplity to test the effect of knowledge relationship between breakfast and school performance, and assessed the well-being, learning ability and focus breakfast in schools in socio- of the students. The evaluations show that eating breakfast increased the students’ ability to concentrate and economically challenged areas. This teachers concluded that the classroom environment improved. A further outcome of serving breakfast during showed a direct positive result on the morning class was that more students were in attendance compared to when breakfast is served in the concertation and classroom canteen prior to their first class. environment. We have also completed a research study in Ghana in collaboration with Washington University School of Arla collaborated with Washington Collaborate to create Medicine. About 1,000 children, between the ages of six and nine years, were served breakfast porridge, either university to study the effects of milk knowledge plain or enriched with milk protein, or a combination of milk- and rice protein. In this study, the children protein enriched porridge. This vulnerable to malnutrition benefitted from all three versions of porridge provided by the intervention. The showed cognitive improvements in study further showed that the children who were given milk protein-enriched porridge, equivalent to one daily the school children in Ghana. glass of milk, performed better in cognitive tests than the children in the other intervention groups. This indicates that it is relevant to continue exploring how milk and dairy products, in combination with plantbased proteins, can create both healthy and affordable solutions that will improve the nutritional status and cognitive performance in vulnerable population groups. We inspire consumers around the world to eat well, and we find that new ideas, creative solutions and good Arla wants to inspire healthy diets Collaborate to create decisions often come from collaboration and knowledge sharing. and creative solutions through solutions collaboration As a cooperative, we value the strength of working together with others to develop our business. In Collaborating is key in Arla’s Collaborate to create collaboration with suppliers we can improve both their and our performance in terms of quality, efficiency and business success. They have an active solutions environmental impact. collaboration with suppliers to improve on sustainability and efficiency issues. Arla has identified palm oil as a risk ingredient and is aware of the environmental, social and human rights’ Arla sees palm oil as a risk ingredient, Collaborate to challenges on many palm oil plantations. To improve working conditions in Indonesia, we supported local due to its environmental impact and implement solutions workshops in collaboration with our main supplier of palm oil. Our primary objective has been to strengthen human rights issues. They have supplier understanding of labour issues and improve plantation management practices. Through the supported local initiative to better workshops, suppliers also gain a deeper understanding of responsible sourcing expectations. understand labor and environmental issues and create solutions Supplier collaboration can also improve processing efficiency and reduce resource use. A project together Collaborating with suppliers has Collaborate to with a supplier of cleaning detergents has resulted in 95 per cent of our sites optimising their processes helped reduce use of on water, implement solutions delivering savings on water, chemicals, heating, product waste and energy. 62 projects have been completed chemicals, heating, product and more than 300 are in the pipeline. waste and energy at 95% of arlas sites We participate in a two-year pilot project to test new guidelines for strengthening responsible sourcing and Arla has joined an OECD & FAO Collaborate to supply chain management practices globally. The guide was launched by OECD (Organisation for Economic initiative to minimise risks related, implement solutions Co-operation and Development) and FAO (Food and Agriculture Organisation of the United Nations). It human and labour rights, animal aims to minimise risks related to, for example, human and labour rights, animal welfare and to promote welfare and to promote technology technology and innovation. and innovation 57

Arla is an active member of global networks and organisations with the ambition to contribute to increased Arla is active in several global Collaborate to create knowledge and precompetitive developments within the industry. In 2018, we engaged in a project in the network to increase knowledge in the knowledge Sustainable Agriculture Initiative in which we developed and tested a business-to-business model which industry on sustainable pratives. assesses the company implementation of the Dairy Sustainability Framework, a joined initiative from the global dairy industry. To develop a method for estimating carbon sequestration on farm we have initiated a project together with Arla has joined a group of large Collaborate to create other large companies within the food industry. The ultimate deliverable is to have a method that will support companies in the food industry to knowledge and encourage farmers to adopt and implement activitiesand practices that promote carbon sequestration. research methods for carbon sequestration in farming. We cannot quantify food waste at consumer level in an aggregated way right now, but we are actively They are working together with Collaborate to developing methods to handle this complexity and are also in dialogue with expert organisations such as the WRAP, a foodwaste think tank, to imlpement solutions Waste and Resources Action Programme (WRAP) in the UK. For the time being, we proactively work to develop tool to quantify food waste. influence consumers to reduce food waste. For more information on how we work, see page 12. The possibilities to recycle varies between countries and municipalities. To improve recycling opportunities, Funding and engaging in Collaborate to Arla contributes to various initiatives, for example, working with municipalities in Denmark to improve governmental recycling projects. implement solutions recycling systems and avoid littering, contributing to funding of recycling systems in Sweden and Germany and pushing developments in the UK through the voluntary Courtauld committment. To close the last challenging gap and reach this ambitious goal, we work with our research and supplier Innovate packaging with research and Collaborate to create network to find innovative packaging materials and solutions supplier network. solutions A dilemma related to packaging is the export of products to markets where packaging waste handling and Working with NGO’s in areas where Collaborate to create recycling systems are lacking or are not optimal. In these markets, our products’ packaging may contribute to recycling sysems are lacking, solutions littering and disturbance of ecosystems. One of the examples is in Bangladesh where milk powder is sold in portion size sachets. The product helps address malnourishment of vulnerable consumer groups, as it is an accessible and affordable nutritious product. However, there is a risk that the sachets are not discarded properly and end up as litter. To mitigate the negative effects, we have initiated a dialogue with NGOs on how we can collaborate to find a way to improve packaging waste handling together with local stakeholders. The goal in our sustainable dairy farming strategy is to reduce the emission of greenhouse gases from The goals are; reducing emission Reducing emissions farms by 30 per cent per kilo milk, from 1990 to 2020. In 2018, we have continued our work with carbon from farms by 30% over the period Practical assessments on farms, giving farmers the opportunity to receive recommendations on how to further reduce 1990-2020. So far they have achieved policies to such emissions. Farm level emissions were reduced by 24 per cent in 2017 (2016: 23). Carbon assessments a 24% reduction. enhance are reported one year after. sustainability Many Arla farmers produce renewable electricity based on solar, wind or biogas. The amount produced is Farmers produce renewable energy. Use of renewable comparable to 61 per cent of the annual use on farm. From January 2019, our organic farmers in Denmark Their farms produced 61% of their energies will cover their net electricity use on farm by buying renewable electricity certificates. This is already the annual needs. They also use case for organic farmers in Sweden. electricity certificates. One important way Arla farms contribute with positive environmental impact, i.e. ecosystem services, is the Farms provide ecosystem services. Provide ecosystem uptake of carbon in grasslands, hedges and pasture lands, which mitigates climate change. Nevertheless, services there is not scientific consensus on how to calculate carbon sequestration in dairy farming The most common use of our food waste is anaerobic digestion followed by sewer and land application. Most of the waste material are used to Reuse waste Keeping track of volumes and destinations enables Arla to identify improvement potential in moving resources create fertilizer. up the value hierarchy, making better use of the valuable nutrients in the raw materials. 58

For Arla’s own operations, our environmental strategy 2020 sets the objectives for our environmental and Arla aims to reduce emission by 25% Reduce emission climate work. Working towards our goals, we experience both possibilities and challenges. We have from the 2006 level. It has currently committed to reducing greenhouse gas emissions by 25 per cent by 2020 within operations, packaging and reduced it by 22%. transport, compared to the 2005 level. Since 2005, Arla’s total climate impact has decreased by 22 per cent, despite increased production. By far the biggest project being initiated in 2018 (to be finalized in 2020) is the energy performance boost at The largest project to reduce Reduce emissions Nr. Vium in Denmark. A net investment of 23 MDKK is being made to deliver significant savings in the use emissions to use less natural gas. of natural gas. Our ambition is to use at least 50 per cent renewable energy at corporate level by 2020, taking into Arla wants to use 50% renewable Use of renewable consideration national legislation and availability. The share of renewable energy in 2018 was 27 per cent, energy by 2020. In 2018 this 27%. energies indicating that more action is needed.

In 2018, Arla focused on supporting sites where environmental permits may limit production or expansion Arla aims to reduce watrer use. They Reduce water use plans. We continuously seek possibilities to increase efficiency. During 2018 we made significant water reduced this by 1m m3 compared to consumption reductions of about 1 million m3 compared to 2017. 2017. Our climate target for transport remains challenging as biofuel availability is low and costs are high in many Arla has reduced its transport related Reduce emissions countries. Overall, Arla reduced its climate impact from transport by 12 per cent from 2005 to 2018. climate impact 12% from 2005 levels. In 2018, EU-regulation on biofuels changed with potential impacts on both availability and costs going Arla requires stable government Reduce emissions forward. For Arla it is important that stable policies guide our investments. In Sweden for example, we invest policy on biofuels, as it is using it to in vehicles that can run on different fuels, as we are eager to safeguard our fossil free transportation reduce emissions in transport. commitment. We have already achieved our environmental strategy 2020 goal of reducing climate impact from packaging Arla has achieved its goals in Reduce emissions by 25 per cent from a 2005-baseline. This is the result of continuously decreasing the weight of individual reducing 25% of emission due to packaging formats, without impacting functionality, as well as increasing the percentage of renewable and packaging. recycled packaging material. We have also continued to take responsibility for sourcing responsibly produced packaging materials, for example, carton and paper which is FSC (Forest Stewardship Council) certified. In response to the 2018 debate on plastics, insufficient recycling and littering, we re-focused our packaging The reducing the use of plastics is on Reduce the use of goals and efforts to deliver further improvements in relation to climate impact reduction and improved the sustainability agenda for Arla. plastics recyclability. For many of our products, plastic is currently the best choice of packaging material for several reasons Unfortunately plastic is still plays a Use recyclable including food safety and shelf life. Where food safety regulations permit, we work to increase the use of major role in arla packaging. They materials recycled plastic, plastic made from renewable sources and plastic materials suitable for material recycling. aim to reduce the impact of this by This way we contribute to a more circular flow of plastic in society and a reduction in the climate impact of using recyclable and encouraging the plastic materials we use. recycling. Our goal is that 100 per cent of our packaging material is recyclable in 2020. 100% recyclable packaging Use recyclable materials We believe inspiration and knowledge about cooking is the best way to develop good food habits. Our recipe Arla hopes to inspire good food habits Inspire healthy food services provide cooking inspiration on our national websites, in brochures and via online apps. In our core by providing recipe services. habits European markets, we see a positive development in the number of consumers who believe that Arla helps them eat healthily. In Denmark, our independent body, Arla Foundation, annually arranges food camps for 1,600 school children Arla hopes to inspire good food habits Inspire healthy food Encourage aged 13–14 years. The evaluation of these is positive, showing increased confidence in cooking among the by hosting food camps for school habits consumers to young chefs as well as an interest in for example tasting new vegetables. children. 59

Access to Nutrition Index (ATNI) is a tool used by the Access to Nutrition Foundation, an independent non- Acces to nutrion index is used to Create healthy products purchase profit organisation to measure the world’s top 22 food and beverage companies’ contribution to good judge the food producers on the healthy products nutrition against industry best practice. We have improved our overall ATNI score during the last two years, nutritional value of their products. and our current position ranks us as number 11 (2016: 14 Arla is ranked 11 out of 20. The Arla® Nutrition Criteria secure the content of dairy protein and calcium, while limiting the amountof Arla has a set of criteria to guide a Create healthy products added sugars, salt and fat. The criteria are the guiding principles that support the development of healthier healthy balance of nutrients in their Arla® branded products, and thereby increase availability of healthier dairy products to our Consumers. We products constantly strive to ensure our products fulfil the Arla® Nutrition Criteria Our ambition is to increase the percentage of products complying with the criteria and achieve 95 per cent by In 2018, 91% of their products meet Create healthy products 2020. In 2018, 91 per cent of the Arla® Branded products in the milk, yogurt and everyday cheeses categories these criteria, their goal is for 95% of comply with the criteria. This is a result of a decrease of plain milk sales and an increase of non-compliant their goods to meet this criteria by yogurt volumes compared to 2016. The affordable and flavored milk categories improved by 16 per cent and 2020. the cheese category improved by 2 per cent, compared to 2016. We use the power of milk to influence millions of consumers’ food habits. Our extensive range of tasty and Milk in general and so arla’s products Create healthy products nutrient rich products can contribute to healthier diets for consumers around the world. can contribute to healthy diets around the world Dairy products are recommended as part of a daily diet from childhood to old age, across the world. Dairy is recommended globally Create healthy products Milk naturally contains one of the richest combinations of nutrients you can find in a single food source, such Milk is a rich source of vitamins and Create healthy products as calcium, vitamine B2 and B12, iodine, a high content of protein and a broad range of other vitamins and minerals. minerals.

Appendix C Please note that the colors in the chart do not have a specific meaning, they are merely in place to help distinguish between different themes. Table C.1. Thematic framework charts for Best Fresh (2017). Meaning unit Condensed meaning units Sub-theme Theme Nowadays the concept of sustainability is widely used, as a family business Best Fresh(BF) has always had several practices now Historical sustainability however many of its aspects have always been common practice. defined as sustainable Sustainability is We always had the responsibility to take care of our employees and BF recognizes and has passed on a responsibility for Historical sustainability integral to BF environment. This intrinsic value for a healthy, social and caring community was employees and the environment to each generation. operations. passed on from generation to generation. We strive for a society that looks after each other, contributing to a healthier and BF strives to be sustainable Strive to be sustainable livable world. The beauty of it; the more you give,the more you receive. In order to ensure business continuity we heed to embed sustainability with BF wants to embed sustainable innovation into the Integrated sustainability innovation into our business operations business. We have embraced sustainability: as entrepreneurs we have a hands-on BF has embraced sustainability Integrated sustainability mentality - words are only as good as our actions. With regards to sustainability we are making Progress and creating impact; we BF is making progress in sustainability. Strive to be sustainable hope you enjoy this publication, and we will keep you posted on our progress. Health. “Providing health to society’ is a binding factor, Through our wide range BF inspires customers to make physical and Inspire healthy living in of products ‘we inspire consumers to make a healthy choice on a daily basis: for environmentally healthy choices. customers Encouraging healthy themselves and for a healthy planet. living We also have the ambition to stimulate healthy living, by focusing on the BF stimulates healthy living Inspire healthy living potential of food on people's health. customers » Putting health and safety first. By means of strict safety measures, a Food & BF advises employees on health lifestyles. Advise employees on Fit program, and by providing free health advice and daily meals at our healthy living cultivation company Best Fresh identifies three sustainability pillars. Each pillar is linked to a SDG as BF has three suitability pillars, Sustainability policy is defined by the UN. These pillars are.Sustainable supply chain Sustainable supply chain management, good split in pillars Producing sustainable management.(SDG12) Good employment practices(SDG8)Sustainable business employment, sustainable operations. products operations (SDG13) About the pillar ‘With the pillar “Sustainable Supply Chain Management” we BF minimizes its environmental impact through Supplying sustainable commit ourselves to SDG #12: Responsible consumption and production. We supplying sustainable products. products take our responsibility in regards to the products we deliver and strive to create added value in our supply chain whilst maintaining the impact on the environment and communities worldwide to a minimum. Sustainable Business Operations. Sustainability starts in-house. We should lead BF sees sustainability as an internal issue to be solved Sustainable by example and manage our businesses as sustainable as possible. Efficiency by innovation. organization and innovation are key in our daily operations. 61

By calculating our footprint we have complete insight to implement focused BF uses renewable energy to reduces its Carbon Sustainable measures and optimize our efforts in sustainability. A few examples are: footprint organization Reviewed the energy sources: we use both solar and geothermal energy in our business operations. Our head office in Poeldyk, the Netherlands, uses both renewable energy sources all year round and consequently operates with zero CO, emissions. But also our cucumber cultivation glasshouse is an example in sustainability: BF’s cucumber growing operation uses geothermal Sustainable optimal growth by means of geothermal energy sources - reused and shared with energy. organization neighboring growers - again achieving zero CO, emissions. SDG # 13: Climate Action. By calculating our footprint, we have in-depth BF calculates it carbon footprint and manages its Sustainable insight of our business operations and its impact on the environment. Moreover, energy use according to this to become sustainable. organization it enables us to adapt and change to optimize our operations and create awareness about the effects on the environment. Each company has its own identity; and we believe that this diversity not only The groups diversity makes BF resilient Sustainable makes us strong but also resilient. organization Being a company that sets goals for sustainability contributes to the Setting goals for sustainability motivates employees. Sustainable commitment, involvement and motivation of our employees. We aspire to be an organization attractive employer for our current employees, and future ones. In order to achieve this; Eating a more piant-based diet positively impacts CO, emissions. Therefore we By proving F&V BF aids SDG3 Supplying sustainable directly contribute to SDG #3 (Sustainable Development Goals products of the United Nations) ‘Good Health & Well-being’ with our business activities. SDG 17 17 partnerships is overarching and at the same time integral to our three Partnership links their goals Partnership pillars, as collaborations are fundamental to creating impact. Partnership & Partnership for the goals. At Best Fresh we believe in strength of diversity and collaboration helps collaborations. Hence we have embraced SDG 17: Partnerships for the goals BF meet sustainable The diversity amongst our companies enables us to create impact in various The collaboration of multiple businesses within the Collaborations goals ways. Sustainability policy of the individual companies not only connects but group enhances sustainable innovation. also contributes to the overarching pillars. As such even though each division has its unique identity; the effect is greater than the sum of the individual parts. Essential In order to achieve our goals, we firmly believe in the strength of BF needs partners to accomplish sustainable goals. Partnership partnerships As we are a hub in the international fresh fruit and vegetables supply chain it is fundamental to have the right partners who share our core values. Only together with dedicated partners will we be able to accomplish real impact, hence the SDG # 17 brings our sustainability pillars together. Together with our partner “MVO Westland” we create and facilitate suitable BF collaborates with MVO to employee jobseekers. Collaboration employment for those with a distance to the labor market. Each company has its own identity; and we believe that this diversity not only The groups diversity makes BF resilient Partnership makes us strong but also resilient. The initiative “Vers+” is a great example; science and business working BF has projects that combine academics and business. Collaboration leads to together to investigate the correlation between food and health and unlock its strength potential. 62

Best Fresh identifies three sustainability pillars. Each pillar is linked to a SDG as BF has three suitability pillars, Link to SDGs defined by the UN. These pillars are Sustainable supply chain Sustainable supply chain management, good management.(SDG12) Good employment practices(SDG8)Sustainable business employment, sustainable operations. Strategy are linked to operations (SDG13) specific SDGs. About the pillar ‘With the pillar “Sustainable Supply Chain Management” we BF minimizes its environmental impact through Link to SDG 12 commit ourselves to SDG #12: Responsible consumption and production. We supply sustainable products. take our responsibility in regards to the products we deliver and strive to create added value in our supply chain whilst maintaining the impact on the environment and communities worldwide to a minimum. Eating a more piant-based diet positively impacts CO, emissions. Therefore we By proving F&V BF aids SDG3 Link to SDG 3 directly contribute to SDG #3 (Sustainable Development Goals of the United Nations) ‘Good Health & Well-being’ with our business activities. SDG # 13: Climate Action. By calculating our footprint, we have in-depth BF calculates it carbon footprint and manages its Link to SDG 13 insight of our business operations and its impact on the environment. Moreover, energy use according to this to become sustainable. it enables us to adapt and change to optimize our operations and create awareness about the effects on the environment. SDG 17 17 partnerships is overarching and at the same time integral to our three Partnership links their goals Link to SDG 17 pillars, as collaborations are fundamental to creating impact. Essential In order to achieve our goals, we firmly believe in the strength of Partnership links their goals Link to SDG 17 partnerships As we are a hub in the international fresh fruit and vegetables supply chain it is fundamental to have the right partners who share our core values. Only together with dedicated partners will we be able to accomplish real impact, hence the SDG # 17 brings our sustainability pillars together

Appendix D Please not that the colors in the chart do not have a specific meaning, they are merely in place to help distinguish between different themes.

Table D.1 Thematic framework chart Cono (2016). Meaning Unit Condensed meaning unit Sub-theme Theme The Management Board of CONO Kaasmakers states that concerning Corporate Cono follows the following CSR policy CSR policy Social Responsibility (CSR) the company pursues the following policy, divided into different components: Mission The best for farmers and cows: In order to enable us to pay our farmers Cono’s mission is to make the best cheese with Concern for people, This document concerns a fair price for their milk, we have to make the tastiest cheese in the very best concern for people, animals, and the environment. animals, and the sustainability policy way. Using our traditional methods, and with genuine concern for people, environment animals, and the environment. Vision We fight against the standardization of taste and want to surprise our Cono fights against taste standardization and sees CSR policy customers and consumers with flavorsome, honest products. That’s why we’re implementing CSR practices as way to do this. leaders in Corporate Social Responsibility and committed to fair margins in the entire cheese production chain. Putting our mission into practice The CEO is responsible for the current CSR CSR policy We pursue a coordinated and integrated policy for which our CEO assumes strategy. responsibility. The policy is translated into the following objectives: Constantly increase the skills and expertise of our dairy farmers and employees Train farmers and employees Goals as employer Be the greenest, most climate-neutral cheesemaker by the year 2020 Be greenest cheesemaker in 2020. Environmental goals Meet individual goals Make CONO North Holland’s best employer by 2020 Make cono the best employer in 2020 Goals as employer Contribute to the landscape Contribute to the landscape Environmental goals Provide maximum transparency, from cow to consumer Be transparent Communication goal To achieve these objectives, the Management Board will provide all the Management will provide all necessary resources to Strategic goals necessary resources, including time, knowledge, and tools. The Board will be meet these goals. supported by various teams and work groups in the execution and implementation of these policy objectives. Our quality manual describes how implementation will take place. Ethics. CONO Kaasmakers respects and honors international human rights. Cono respects human rights Respecting human These rights are implemented, for example, in the Collective Labor Agreement rights and our internal code of conduct. Broad statements to fulfil Food safety & product quality CONO Kaasmakers is dedicated to producing Cono abides by HACCP and GFSI standard for Abide by safety goals. outstanding cheese, with food safety and poduct quality being key priorities. Our food safety. standards quality assurance system, based on the HACCP principles, satisfies all legal requirements and is certified according to international GFSI standards. 64

Work conditions. CONO Kaasmakers considers it an obligation to prevent Cono wants to prevent physical injury under their Prevent injury physical injury and/or damage to the health of any of its employees (as well as employees third parties) for whom the company bears responsibility, and to promote their well-being. CONO Kaasmakers ensures that the organization and working methods are Cono ensures a low risk environment for Prevent injury structured in a way that excludes unacceptable risks and optimizes working employees conditions. In doing so, we strive to combat issues at their source, rather than burden employees with the use of personal protective equipment (PPE). When taking measures, careful consideration is given to risks and financial aspects, and the measures are assessed in the light of the latest state of science and technology. Sustainability / environmental and energy management CONO Kaasmakers Cono recognizes its role to in minimizing Minimize recognizes and acknowledges its role not only in society but also in the environmental impact. environmental impact Beemster Polder, a world heritage site. CONO Kaasmakers is committed to minimizing the impact of its operations on the environment. Measures to be taken are assessed with a view to the latest technological developments as well as economic feasibility. Improvement circle The Management Board conducts an annual assessment to The management board reviews these goals Reviews Goals determine whether the system meets the requirements and expectations set by the annually. annually Board. The outcome of this assessment forms the basis for the following year’s objectives.

Appendix E Please not that the colors in the chart do not have a specific meaning, they are merely in place to help distinguish between different themes. Table E.1. Thematic framework chart Cool Fresh (2018). Meaning unit Condensed meaning unit Sub-theme Theme COOL FRESH INTERNATIONAL’S VISION ON CORPORATE SOCIAL Cool Fresh(CF) is focused on Adding value RESPONSIBILITY. Cool Fresh International's primary objective is to a 'First Choice' adding value for suppliers and Add value through fresh produce company. In all that we do, we strive to provide professional services and clients sustainable projects and added value, making it possible for our clients and suppliers to make their decisions growth effectively and to improve their productivity. In achieving our goals, Cool Fresh International is committed to using high standards of CF is committed to Professional behavior professional conduct and ethics, and being a dedicated, responsible partner in society. professionality and ethical behavior Besides a renewed focus on creating extensive penetration in the emerging world markets, CF expanded in emerging Cool Fresh International saw the need for having its own added value supply chain markets and created its own Enable customers participate facilities, to further develop a broad spectrum of services and facilities, and to create a processing facilities to enable in sustainable social projects strategy which would enable its clients to participate in sustainable social projects. its clients to participate in sustainable social projects The background. Cool Fresh International's fresh poduce history stems from the 1950's, CF was a traditional Change strategy and for fifty years it performed the standard import/export function . In 2001 the import/export business, this company's directors did a management buy-out, and in 2005 repositioned the company changed in 2001 to international strategically in the international fresh produce arena. fresh provider Whilst the various entities in the Cool Fresh group have over many years succeeded in CF needed to change strategy Change stragtegy creating a dynamic international sales and marketing network, it became clear that the changing trading environment necessitated a whole new mindset. Besides a renewed focus on creating extensive penetration in the emerging world markets, CF expanded in emerging Expand internationally Cool Fresh International saw the need for having its own added value supply chain markets and created its own facilities, to further develop a broad spectrum of services and facilities, and to create a processing facilities. strategy which would enable its clients to participate in sustainable social projects. The philosophy of the group is to go beyond importing and exporting fruits and vegetables. CF is commited to improving Increase profitability With the support and knowledge of Cool Fresh local farmers achieve more crop volume output and profit for farmers and better quality products, and to improve the financial conditions of the farmers Cool Fresh International pre-finances their production activities. By activating this strategy, Cool Fresh has in recent years created a business model which This expansion has increased Increase profitability increases turnover and profits, decreases costs, and opens up new commercial and social profitability for CF and its investment opportunities for all concerned. suppliers Cool Fresh International bases its company policies on various international social CF bases its social compliance Compliance to international compliance conventions, such as: • ILO Core Labour Conventions, • United Nations on international treaties, mainly treaties Conventions on children's rights United Nations Conventions to eliminate all forms of UN. discrimination • The United Nations Universal Declaration of Human Rights • The United 66

Nations Global Compact • The OECD Guidelines for Multinational Enterprises • Achieve sustainability Legislation of the European Community through meeting regulatory ENVIRONMENTAL POLICY CF expects its suppliers to meet Suppliers meet environmental standards. Cool Fresh International – through its international fresh produce sourcing and marketing and led environmental standard activities – is committed to all forms of environmental awareness, and expects its supply production standards. partners to show environmental leadership in all of their business activities. As we do with our own company, we expect the policies and business practices of our CF expects their suppliers to Suppliers must meet agricultural supply partners to be focused on ensuring a safe, healthy workplace, ensure health & safety, standards protecting the environment, and conserving energy and natural resources environmental protection and energy conservation. With these policies in place Cool Fresh International believes that as far as possible, taking Through demanding this from CF is sustainable through into account our span of control, we and our supply partners can collectively suppliers CF feels that they are sourcing sustainably can ensure a healthy and safe environment. ensuring health and safe environment. As a company, we are committed to the following policies and procedures. In the These external demands are CF is sustainable through same vein, we expect supply partners to follow the same set of rules and ploicies. guided through a list of policies. sourcing sustainably This is to: •Provide a safe and healthful workplace and ensure that personnel are Supplier must provide a safe Suppliers must meet safety properly trained with the appropriate safety and emergency equipment. working space. standards Be an environmentally responsible neighbor in the ommunity/communities where we Supplier must be Suppliers must meet operate, and correct incidents or conditions that endanger health, safety, or the environmentally conscious and environmental standards environment. correct incidents that endanger this. Conserve natural resources by adopting pollution prevention practices. For example: Suppliers must conserve natural Suppliers must meet extending the life of equipment through preventive maintenance scheduling, purchasing resources through maintenance. sustainability standards and reworking used equipment. • Develop and improve operations and technologies to minimize waste and other pollution, Suppliers must improve Suppliers must meet minimize health and safety risks, and dispose of waste operations to pollution and sustainability standards safely and responsibly. health risks. Ensure the responsible use of energy throughout our businesses, including conserving Suppleir must use energy Suppliers must meet energy, improving energy efficiency, and giving preference to renewable over non- responsibility by increasing sustainability standards renewable energy when feasible. efficiency and using renewables. Participate in efforts to improve environmental protection and understanding. By this we Suppliers must participate in Suppliers must meet mean sharing appropriate pollution prevention environmental protection environmental standards technology, knowledge and methods with other stakeholders. projects. Utilize academic and regulatory organisations (such as ministries of agriculture and export Suppliers must collaborate with Suppliers must meet control boards) to assist in the development of solutions of environmental problems. We governmental and academic sustainability standards promote cooperation and understanding with such public and government agencies in organizations in developing developing economically feasible and environmentally sound waste water treatment sustainable innovations. objectives. • Meet and exceed all applicable (local) governmental requirements, andadhere to local Suppliers must Meet and Supplier must meet local requirements no matter where we do business. exceed all local regulations. regulations 67

• Strive to continually to improve our environmental management system Suppliers must strive for Suppliers must meet and performance; environmental improvements. sustainability standards • Promptly report all noncompliance issues in accordance with applicable governmental Suppliers must report judicial Supplier must meet local reporting requirements, evaluate causes of noncompliance, and implement corrective environmental issues and regulations actions. implement corrective actions. • Establish procedures for periodic review of environmental compliance with all laws and Suppliers must periodically Supplier must meet local regulations wherever we operate. review relevant environmental regulations legalization • Establish procedures to ensure all that employees are knowledgeable of, understand and Suppliers must train their Supplier must meet local comply with all applicable environmental laws and employees to understand regulations regulations. environmental laws. • Promptly correct any practice or condition not in compliance with this policy. Suppliers must promptly correct Supplier must meet local any incompliance with this regulations policy. . Part and parcel of the next steps is to engage constructively in active dialogue with our The future of CSR is to engage Engage in stakeholder stakeholders, and to discuss crucial CSR issues with them. For instance: in stakeholder dialogues. dialogues With our transport service providers: to ensure that the most environment-friendly Stakeholder dialogue with Engage in stakeholder transport systems are used; transport service to improve dialogues with transport Engage in stakeholder transport sustainability. providers dialogues to improve CSR With our bank: to identify ways in which we can collectively bring CSR issues into the Stakeholder dialogue with the Engage in stakeholder strategy in the future 'hearts and minds' of the broad public; bank to improve visibility dialogues with banks With growers: the need for social involvement in their workers' communities Stakeholder dialogues with Engage in stakeholder With growers: the need to be serious about sustainable production, protecting biodiversity growers to improve sustainable dialogues with growers and ensuring that pollution is minimized production and social involvement. With our employees: by getting employees involved in our CSR activities, by asking each Stakeholder dialogues with Engage in stakeholder employee to commit to writing what contribution he/she can make to corporate social employees to improve CSR dialogues with employees responsibility, and to commit himself/herself to a date by which this will be attained. achievements

Appendix F Please note that the colors in the chart do not have a specific meaning, they are merely in place to help distinguish between different themes. Table F.1. Thematic framework chart Coop (2017). Meaning unit Condensed meaning unit Sub-theme Theme As a modern company with a cooperative structure. Coop thinks that attention for Coop is committed to solving social Solving social issue social issues and corporate responsibility goes without saying. Coop is connected issues with its members, its customers. We are involved in their living environment and Committed to solving social & listen to what is going on. environmental issues Also as a society, we increasingly recognize that the earth is not an inexhaustible Society sees the need to respond to Responding to resource. environmental issues. environmental issues This has lead to an increasing in conscious consumption. All these developments and beliefs are in line with our cooperative Coop is reacting to these societal Solving social issues thought and our vision on sustainability. concerns That is why we are publishing a separate CSR report for the first time. This way This is the first CSR report, aimed at Report to solve we show even better what sustainability means to us. That we have an eye for communicating their sustainability communicate sustainability social themes. . ambitions. ambitions In the coming years, Coop wants to help customers choose healthier food. We are Coop wants to help consumers make Help consumers make therefore looking for partnerships that take responsibility for the use of salt and health choices healthy choices Promote a Healthy lifestyle. reduce sugar in products. Promote healthy lifestyle We are paying more and more attention to healthy Coop wished to promote a healthy Promote healthy lifestyle. lifestyle. Our focus is on healthy food in the form of assortment, education and lifestyle. inspiration Healthier assortment Coop want to influence consumers to Help consumers make As a supermarket organization we have direct influence on what our customers buy eat healthier healthy choices and eat. Via the composition of our range and improvements to our private label products, we ensure healthier diets in our customer. Encourage healthy choices. Coop understands that making a healthy choice always easy, and is happy to help customers with that. We do this through, among other things, healthy food place in our magazine Aan de Keukentafel and via recipe cards in the store. But also through promotional campaigns, education and with customers discuss a theme such as salt. . Healthy employees. Coop wants its employees in all walks of life the organization Coop wants to encourage a healthy Promote healthy lifestyle. a safe and healthy working environment offer. We have an eye for talent and lifestyle in their employees development, and we work on sustainable employability. Promoting a healthy lifestyle (see chapter 6 on page 47) is one of our CSR pillars. Coop wants to provide healthy Promote healthy lifestyle. Our range contains in addition to many healthy products also unhealthy products. products, but must provide unhealthy Which we do to offer our customers the choice that Coop expect a from a ones to remain profitable supermarket. We also do this for the sake of continuity of our business. We also have a responsibility to our more than 6,000 employees. 69

Tension areana. This area of tension between social and business economics and Coop wants to provide health Promote healthy lifestyle. Social Responsibility is a difficult consideration, which we also discuss with our products, but must provide unhealthy customers in our store panels. According to the shop panels, it is not up to Coop to ones to remain profitable be specifically remove unhealthy products from the shelf. We also make our assortment more sustainable where possible. We are taking Coop has made efforts to supply Supply sustainable meat major steps various product categories. The entire fresh chicken assortment is sustainable chicken products. products Create sustainability through “ploof kip” -free and there are only eggs with the Beter Levenkeurmerk on our procuring and supplying shelves. sustainable products. We will continue that line. From mid In 2018, consumers will only find Fair Trade Coop stock only fair-trade bananas. Supply certified products bananas on our Shelves. With this we support the farmers in Ecuador. Our purchasing organization

Superunie is also actively working on sustainable and transparent product chains. There buying partner is working to Buy form sustainable As a member of the Sustainable Steering Group Trade, Coop has committed to increase supply chain sustainability. suppliers becoming sustainable. Sustainable purchasing. We offer a growing range of sustainable products, so that Coop offers a growing range of Supply sustainable products we provide the customers with the possibility to choose products are conscious of sustainable products, and helps the effect on people, the environment and animal welfare. people choose these. Product safety comes first. We make a difference through offering a tasty and good range of products to our Coop advances sustainability through Supply sustainable products members and their living environment. offering sustainable products. Sustainable shopping. Coop offers a growing range of sustainable products so that Coop supplies a range of sustainable Supply sustainable products customers can choose products with positive effects on people and the products environment more often.

An increasingly sustainable one Product Range, released in 2017, we worked hard Coop aims to expand its range of Supply certified products on making the products more sustainable that we purchase. In total we had almost certified sustainable products 1,600 products witha hallmark * in our range in 2017. That is our house brandcocoa-containing products 100% sustainably certified (UTZ or equal). In addition, all ordinary tea is Fair Trade certified and the ordinary coffee carries the UTZ quality mark which contributes to better living and working conditions for farmers. Moreover the ordinary coffee is climate neutral More attention for animal welfare. For our meat assortment we made a major Coop aims to expand its range of Supply sustainable meat commitment last year on increasing the number of products with improved animal products that pay attention to animal products welfare. 90% of the Top! of Coop meats, and the ready-to-eat meat has at least 1 welfate Beter Leven star. With this the objective is to make all ready-made meat at least 1 Better To make a life star, not fully achieved but before 2018 within reach. The roast beef and the carpaccio in us range also have 2 stars. All turkeys and chicken meat has at least the plume trademark.

In 2017 there was a lot of attention for our vegetarian assortment. To encourage Coop aims to expand its range of Supply sustainable products our customers to also try vegetarian food, vegetarian products 70

We launched a TV commercial around one affordable meat substitute from Vivera. This was a great success: it led to the sale of no fewer than 160,000 products and was therefore nicknamed "vegetarian big bang " internally. Also 305 of the new range consist of meet substitutes which also receives 25% more shelf space.

To lower environmental impact. Coop to measure and minimalize our impact on Coop aims to minimize its Minimize environmental the environment. We measure our impact via the CO2 footprint of our use of environmental impact though impact Minimize environmental electricity, gas and electricity heat, goods transport and refrigerants. lowering its CO2 footprint through impact through waste electricity, gas and electricity heat, reduction, energy efficiency. goods transport and refrigerants.

Also we work to prevent food waste and we strive for more environmentally Coop aims to prevent food waste and Prevent food waste friendly packaging. use environmentally friendly packaging We are committed to our entire chain for a lower environmental impact, from Coop wants to lower its Prevent food waste energy use and food waste to logistics and packaging. environmental impact throughout the supply chain Energy usage reducing. In 2017 we have taken all kinds of initiatives to operate Coop reduces CO2 emmisions Reduce CO2 emissions more efficiently. That's how we replaced big ones renovations of supermarkets old through efficient cooling systems and cooling installations for new CO2 cooling installations. This new cooling reducing natural gas use. installations are filled with a natural refrigerant R744 (CO2) and are therefore a great alternative to synthetic refrigerants that the government says the F-gas regulation will be phased out more quickly. New construction stores no longer receive gas connections and in our transport, electric mobility has our attention. It was our goal to reduce gas consumption at our distribution centers by 15%. By replacing the old boiler installation in Gieten in the third quarter of 2017 we saved between 10-15% on gas consumption. Fully electrical supply for two Coop Vandaag stores in Rotterdam. This pilot Coop reduces co2 emissions through Reduce CO2 emissions project we did with our logistics service provider Bakker Logistics and with using electric vehicles. Breytner, specialist in electric transport. Solar panels In 2017, branches and Coop entrepreneurs will have installed 650 Coop reducse co2 emissions by Reduce CO2 emissions solar panels. Our goal of 1,000 panels unfortunately, has not been achieved. This is installing solar panels. because two projects, totaling 488 panels, are delayed.These will still be realized in 2018.

Ambition for 2018. For our branches, distribution centers, central butcher shop and Coop is lowering its energy Reduce CO2 emissions Service office we have a plan ready for the European Energy Efficiency Directive consumption through lower energy (EED). The EED is established in 2012 and aims for 20% less energy consumption use and sustainable procurement. 2020. This plan provides for a reduction in our emissions with 36 thousand tons of CO2 in three years. Staying with energy consumption Coop focus on reducing our energy consumption, but we are also taking the step towards greening. Together with our purchasing partner Superunie, we have the option to further greening of 71

energy in the coming years. The new construction of our plant will open mid-2018. This completely new hall of over 3,000 m2 is built according to BREEAM4 and therefore meets the highest requirements of sustainability and efficiency. Better packaging, waste less In 2017 we introduced a fully biodegradable Coop is introducing biodegradable Reduce packaging meat packaging for the entire organic meat range. This will ensure that more than 1 packaging. million meat packages will be fully composTable Our Coop private label packaging is also provided with the right throw-away logos, which means find it easier to separate trash for recycling. Better shelf life. Our central butcher shop ProMessa switched to mentioning real- Coop is reducing food waste by more Reduce food waste time THT on meat packaging. With this we communicate the maximum expiration accurate labeling and effective date, which means less waste. During the Fresh Weeks in May and June, we made storage. customers aware of it. With the campaign slogan "Keeping fresh is tasty saving" customers could save for a handy Lock & Lock food containers. This has saved almost 150,000 boxes together. Ambition for 2018. Among other things, we focus on reducing the residual waste Coop aims at reducing food waste by Reduce food waste stream with 80% at the Service Office via waste separation. We talk to our waste 80% processor Renewi for insight to get into what else we can do to waste so much possible and to close cycles. Coop is a supermarket organization with an eye for social values. We listen Coop listens to society and achieves Collaborate with society carefully to our customers, employees and to society as a whole. We are in all our goals collectively. Collaborate with stakeholders stores and operations involved in our immediate environment. That's in it our to inform, build and implement cooperative structure: together with the members from our cooperative - customers sustainable solutions. and entrepreneurs - we make a difference and contribute to one more sustainable society . This CSR report was set at the end of 2016 based on input from external There CSR goals are created using Define goals with stakeholders and the CSR core group, which includes people from various levels external stakeholders and internal stakeholders within the Coop organization. This report gives extra power to the brand value and employees. highlights what are the essential parts of out business strategy. Control and monitoring. The CSR core group is responsible for management and A mix of employees are used to Define goals with monitoring our social policy. In this core groupare representatives from the various create the internal csr policy employees disciplines within our organization: management, finance, logistics, staff & organization, marketing & communication, category management, construction agency, shop operation, facility management and cooperative affairs. In 2017, the CSR core group met six times and spoke the members about the progress of CSR at Coop. The CSR core group also welcomed guest speakers from CSR Netherlands (about Coop invited guest speakers and Stakeholder inform CSR the circular supermarket) and went to visi tNature’s Pride (about working visited other organizations to inform decisions conditions) and TNI (sustainable tomatoes). their CSR decisions We have also sat down at the table with Max Havelaar several times (about chain Coop collaborate with NGO’s to NGO inform CSR goals. responsibility). At the Autumn Fair (which we serve as supermarket managers, inform their CSR goals. entrepreneurs and employees) there was a CSR theme square designed to explain 72

our CSR policy. Next the central theme of health, with attention to the “schijf van vijf”, we provided information about the Coop Red Cross Fund, the Johan Cruyff Foundation and local deposit promotions. With our stakeholders we make a difference Coop collaborate with stakeholders Collaborate with stakeholders As a supermarket organization we are involved in many different CSR topics. To Coop has focused their CSR topics Define goals with focus our efforts, we conducted a materiality analysis in 2016, to highlight which with a materiality report based on stakeholders issues are most important for us and our stakeholders. stakeholder dialogue. Materiality matrix. In addition to employees from all parts of our organization Coop use customers, entrepreneurs, Define goals with (branches, suppliers, service providers, civil stakeholders service office, distribution centers) we have, through an online survey, asked society organizations and sector customers, entrepreneurs, suppliers, service providers, civil society organizations organizations to create their CSR and sector organizations themes. what Coop think are the important social themes, which Coop has influence on. In conversation with our stakeholders. A dialogue with stakeholders is highly Coop uses stakeholders to inform Define goals with important for Coop. Coop have one important voice in our CSR policy. Our their CSR policy stakeholders stakeholders are parties on whom our actions influence and who act on us to influence. That is why were in regular contaxt with them during 2017. To be easily accessible for the various stakeholders, we have the email address [email protected] put into use. The table below shows how we have been in contact with each stakeholders. Wakker dier [Awake Animal]. Type of dialogue and frequency: Regular mail Coop communicates with wakker dier Implement solutions contact on relevant files. Topic of conversation: Making turkey more sustainable, to inform their decision on rabbit and together with stakeholders leaflet offers for meat and stop selling rabbit meat. turkey meat. What did Coop do with the input? The dialogue has caused us to stop carrying rabbit meat.

Varkens in Nood[pigs in distress]. Type of dialogue and frequency: Conversation Coop communicates Varkens in nood Implement solutions in our store. Topic of conversation: Improve animal welfare and position Coop in to inform their policy on pork. together with stakeholders the Pork monitor (which has risen as a result of adjusted count of the number of pork products with a Beter Leven seal of approval by Varkens in Nood). What did Coop do with the input? Satisfied with constructive cooperation that we are pleased to continue. Red Cross. Type of dialogue and frequency: Regularly met, also a look behind the Coop visited the Red cross and screens of the Red Cross regarding their activities in the Netherlands.Topic of attended their first aid course conversation: Actions and deployment of the Coop Red Cross Fund.What did Coop do with the input? Cooperative Red Cross Fund for first aid courses in 2018. Nutrition center. Type of dialogue and frequency: Physical meeting and monthly Coop created health food Implement solutions mail contact. Topic of conversation: How we can activate and encourage thermometer together with nutrition together with stakeholders customers to become healthier to eat. What did Coop do with the input? Among center other things, cooperate on creating a healthy food thermometer logo, the magazine At the Kitchen Table and recipe cards according to the Disc of Five in stores. 73

Safe traffic in the Netherlands Type of dialogue and frequency: Regularly met Coop collaborates with STN on Implement solutions physically. Topic of conversation: Traffic safety for young people and drivers. national campaign. together with stakeholders What did Coop do with the input? Cooperation in the national campaign and action ‘safe to and from school. " Milieudefensie [Environmental Defense] Type of dialogue and frequency: A single Coop included milieudefensies vision Implement solutions visit to Milieudefensie. Topic of conversation: Dairy. What did Coop do with the in their dairy policy together with stakeholders input? The vision of Milieudefensie is included in the rest steps for making dairy more sustainable. Max Havelaar Type of dialogue and frequency: Regularly met physically. Topic of Coop implemented Max Havelaar Implement solutions conversation:Making bananas more sustainable. What did Coop do with the input? policy on Fairtrade bananas. together with stakeholders Only sell Fair Trade bananas (Doel 2018). Arnhem Nijmegen Food & Business University Type of dialogue and frequency: Coop collaborated with Nijmegen Implement solutions Annual master class from Coop to students. Students conduct research into social university on salt contents of food together with stakeholders themes. Topic of conversation: Among other things: animal welfare, salt reduction, waste of bread. What did Coop do with the input? The students are a good sounding board and organized an in-store activation campaign about salt. Customers Type of dialogue and frequency: Survey of digital customer panel (8x p Coop uses customer dialogue to Stakeholder inform CSR / year / 8000 members). Shop panel discussions (around 200 per year). Theme inform sustainability their CSR policy decisions evening and activities. Topic of conversation: Questions about organic food. Talked about social themes such as waste, waste of bread, healthy food. Theme evening about salt and supermarket safari with dietician. What did Coop do with the input? The input from customers helps shape the CSR policy. CSR Netherlands Type of dialogue and frequency: Regularly met physically. Joined government run platform for Implement solutions Topic of conversation: Testing Coop's interest in participating in a circular circular economy. together with stakeholders supermarket. What did Coop do with the input? Invited to the CSR core group and the waste issue picked up steam. Our relationship with the customer. Coop is a cooperative with 800,000 members. Coop uses its members to guide its Stakeholder inform CSR Via the members' council We give customers the ability to guide our policy. The CSR policy. decisions council of members contains around 50 customers and 10 entrepreneurs who meet two to meet three times a year. The articles of association were amended in 2017, so that it becomes possible to put together the council of members in proportion to the number of stores per province. So we guarantee a good reflection of parties and democratic employee participation. In 2017, the members of our store panels are involved in discussions about vitality Coop uses its members to guide its Stakeholder inform CSR and healthy food, packaging and environment. This is how the customer's voice is CSR policy. decisions. heard within the Coop organization, followed by the CSR core group pick up further. As a result of one discussion less salt is included in house brand products.

Appendix G Please note that the colors in the chart do not have a specific meaning, they are merely in place to help distinguish between different themes. Table G.1. Thematic framework chart Dalco food (2015). Meaning units Condensed meaning units Sub-theme Theme In this document we provide a substantiation and elaboration of the choices made with This documents explains Dalco’s CSR CSR strategy regard to our social responsibility. We regularly report progress on our CSR activities and choices to public and stakeholders. Dalco is addressing objectives to our stakeholders, as required. This report can be found on our website: sustainability issues www.dalco.nl The world population is growing and overall prosperity is increasing. This means, among Soil scarcity is putting pressure on meat Sustainability other things, that meat consumption is increasing in countries such as China, India and production. issue Russia. At the same time, soil is becoming scarcer. So there is less room left for cattle breeding and agriculture. To be able to continue to participate, you must produce foods that are also viable in the long For continuity protein providers must Sustainability term and offer sufficient high-quality proteins. Consumers prefer a varied diet and look for adjust their practices issue variation in everyday / weekday products. The people at Dalco Food are passionate about developing (together with the customer) and producing affordable, tasty, easy, sustainable and responsible meal components. We offer higher added value through innovation focus on health, quality, sustainability, Dalco focuses on creating projects health, Sustainable enjoyment and convenience. quality, sustainability, enjoyment and strategy convenience. 3 Stakeholders and value chain Dalco develops its CSR strategy together Developing CSR ISO 26000 states: "Stakeholders or 'stakeholders' are persons or organizations that have an with its stakeholders. These include strategy with interest in the decisions and activities of the organization". They represent the value chain supply chain partners and society as a stakehoders Develop CSR strategy with and environment / society and can make the expectations of governments, environment and whole. stakeholders value chain explicit. An organization needs its stakeholders to determine what effects they are experiencing, what these stakeholders expect from the organization and what the organization must pay attention to. It is also important here that an organization keeps an eye on the expectations of society and citizens in a broader sense regarding health and well- being. Dalco Food has identified its stakeholders. We know who our stakeholders are per relevant Dalco has identified its stakeholders, yet Identifying department. In a number of cases we are not aware of it and are working on it. The people on production floor employees are unaware stakeholders the production floor are mostly unaware of it. We consciously opt for broad communication. of this. The management of the various departments knows who matters and how to communicate with them. We grow through innovation, knowledge and trade spirit. We ask our customers what their Dalco grows through customer driven Listen to wishes and needs are and translate these into products and services that our customers need innovations. customers to create value. Traditional, but aware of current developments and not just living for yourself. 75

4. Respect the interests of stakeholders Dalco is committed to respect the Respecting Stakeholders are organizations or persons who are influenced by the activities and decisions interests of its stakeholders. stakeholders of the organization. That is why they have an interest in the activities and decisions of the wishes organization and are also called 'stakeholders'. The organization has a social responsibility to take these interests into account in its decision-making and activities. We know who our stakeholders are per relevant department. The selection of stakeholders is partly a more or less natural process and partly consciously chosen. We consciously opt for broad communication. Spearhead 1: Nutritional value and health: We develop products with sustainable raw Dalco is committed to using sustainable Sustainable raw materials as much as possible. raw materials materials Source and produce healthy We bring reduction of salt, fat and additives to our (prospective) customers when they are Dalco is committed to reducing salt, fat Healthy products and sustainable products. asked to develop products. and additive content in their products We purchase raw materials and ingredients from suppliers who are able to contribute to the reduction of salt, fat and additives in products. We bring reduction of salt, fat and additives to our (prospective) customers when we are Reduce salt and additives in food. Healthy products asked to develop products. We purchase raw materials and ingredients from suppliers who are able to contribute to the Source products that have reduced fat, Healthy products reduction of salt, fat and additives in products salt and additives content. We communicate with our suppliers about the origin of meat and the way in which the Dalco sources products with animal Animal friendly animals are kept and make choices for welfare-friendly conditions. welfare in mind and communicates this to products customers Spearhead: Leading in developments Our experience in creative product development and Dalco leads the market in food Sustainable innovation means that Dalco operates at the front of the market. We were already working &sustainability developments through products with vegetarian products 20 years ago; we are now the largest producer in the Netherlands. providing vegetarian protein options About ten years ago we started with the first ready-made strips of meat, such as shawarma. ready made meats. From the point of view of sustainability and price, we are now developing a new generation of products with our customers. Combinations of meat and other proteins. Environment. In its production process, Dalco is inventive in various places with the use of Dalco recycles heat and uses up to date Reduce raw materials and sources. For example, 10 years ago we opted to use the residual heat refrigeration technology to reduce its environmental released from our refrigeration compressors to heat our offices, the canteen and the environmental impact. impact of production area. All our freezer rooms are equipped with the latest generation Freon, which processing reduces the environmental impact. In the cleaning we use, under the same high pressure, half the amount of water. Sustainable purchasing. We also opt for favorable solutions for the environment when it Packaging and oil products are sourced Sustainable raw comes to purchasing. For example, most packaging is made from recycled material. We do sustainability materials not include products that contain palm oil. Animal welfare We only produce with meat from anesthetized animals. In 2016 we want to Dalco aims to support animal welfare by Animal friendly conduct a zero audit of the 10 largest suppliers of chicken meat and obtain a minimum of buying responsibly products 50% of purchases from suppliers whose animals are clearly kept in an animal-friendly manner and 100% of whom the supplier endorses the 7 principles of CSR.

Appendix H Please note that the colors in the chart do not have a specific meaning, they are merely in place to help distinguish between different themes. Table H.1. Thematic framework chart Delphy (2017). Meaning unit Condensed meaning unit Sub-theme Theme Corporate Social Responsibility Delphy This Corporate Social Responsibility, or CSR, is demonstrating Delphy is commited to contributing to Committed to Delphy’s responsibility, in case we are bidding for contracts. Delphy wants to do the right thing: to health, food safety, sustainability and sustainability Delphy is contribute to health, food safety, sustainability and well-being for people on earth. Our CSR can be well-being for people on earth committed to understood as a process that integrates social and environmental concerns in business operations and in sustainability our interactions with our stakeholders. Because Delphy contributes to health, food safety, sustainability and the well-being of the people on Delphy want to contribute to Health, Committed to earth. food safety, sustainability and well sustainability being. CSR objectives. Delphy rents most of its locations and (office)rooms. Lease contracts are assessed on Delphy office locations have to meet Limit energy sustainability. We ask for the energy label and we conduct installation approvals, which weigh along energy requirements, compliance with use Reach sustainability when entering into lease contracts. A healthy working environment (accessibility, climate in the legislation, a healthy work environment through reduction in building, location) is part of the considerations. Energy, compliance with legislation, a healthy work and innovations. energy use. environment and innovations are fixed points in the tenant consultation. The same criteria are applied at Delphy’s own location. Risk Assessment and Evaluation (RI&E) is available from any location. This is revised every five years. Risk assent is done according to RI&E Limit energy Where necessary, action is taken to comply with the RI&E criteria. Criteria use Delphy stimulates the use of electric leasing vehicles. The intention is to have a fleet of 50% electric / Delphy wants 50% of its lease fleet to Limit energy hybrid cars in five be electic/hybrid. use years. There is a bicycle plan to encourage employees to go to work on the bike. Delphy encourages employees to bike Limit energy to work. use of employees Almost every Delphy employee has a home workplace, so no unnecessary living traffic is taking place. Delphy encourages employees to work Limit energy Using a home workplace is encouraged by providing, among other things, an appropriate remuneration. from home. use of employees Delphy has the ambition to buy 10% of the flights with CO2 emission-neutral in 5 years. Delphy reduces carbon footprint by off Limit energy setting flights. use Delphy has its own employment policy aimed at trust, responsibility and freedom. Recently, a risk Delphy’s employment policy is aimed Ensuring inventory and evaluation has been conducted aimed at hygiene and work-friendly workplaces. at trust, responsibility and freedom. healthy Ensure healthy working working environment environment Every five years, employees are offered a health check. The purpose of this is to promote awareness of Employees are offered a health check. Ensuring the importance healthy of good health. working environment 77

We have a sustainable purchasing policy. Delphy has a sustainable purchasing Meeting CSR policy. Directives Meeting CSR Due diligence research . At the start of projects we check the assumptions of project terms and partners Due dillgence research prevents Meeting CSR Directives in the areas of: Human rights Work availability Environment Bribery Consumer interests unethical projects Directives

Policy to avoid unequal treatment and/or discrimination of employees Delphy applies equal salary levels to Meeting CSR With equal performance, Delphy applies an equal salary level. Delphy has sex-neutral, age-neutral and prevent wage discrimination. directives origin-neutral approach. We aim to build our staff in a reflection of society. Connecting with unions and collective bargaining with the employer Delphy collaborates and supports union Meeting CSR Delphy has a democratically elected Works Council whose composition is a reflection of the workforce. memebership directives Delphy encourages participation and membership of unions. The membership of a this union is partially financed by Delphy. Good working conditions and terms for female employees Our working conditions apply to every Delphy works to prevent gender Meeting CSR employee and are sexually neutral. Annex: Flyer Employment Conditions inequality. directives Public black lists. Delphy is not named as an involved party in regard to on one of the public black lists Delphy is not on any blacklists. Meeting CSR of: The World Bank, the African Development Bank, the Asian Development Bank, the European Bank directives for Reconstruction and Development, the Inter- American Development Bank or the EIB. Regulations for employees in which the bribery of government employees is expressly prohibited. These Delphy prohibits bribery. Meeting CSR rules are included in our terms of employment. directives Annex: Flyer Employment Conditions Policy regarding cartel law. Delphy follows Dutch legislation. Moreover, Delphy’s market share is such Delphy does not form cartels Meeting CSR that there is no reason for cartel formation. directives Paying taxes. Our local entities are audited annually by accountants. Delphy receives a valid statement Delphy pays it taxes Meeting CSR annually. Annual Local Audit directives Controls indicate that we meet our obligations. Intellectual property rights and the patents of others Delphy respects IP rights. Meeting CSR We are members of various industry organizations that support and protect companies in dealing with directives intellectual property and patents of their members.

Appendix I Table I.1. Thematic framework chart Gulpener (2017). Meaning Unit Condensed meaning Unit Sub theme Theme We are an independent family brewery that brews the tastiest quality beers in a sustainable way Gulpener is a family quality Sustainability in mind with its own, raw materials from Limburg. As a Free Brewer, we are constantly experimenting brewery with sustainability in mind. Document concerns with innovations to enrich the taste of beer: Gulpeners Corporate Social Responsibility (CSR) As a Free Brewer, we chose implement CSR policies as They have had a CSR policy CSR policy sustainability early as 90s. CSR and sustainable business was, is and remains the guidance for our current and implemented since the 90s. strategy future policy. Gulpener has been pursuing its own CSR policy since 2001. De Vrije Brouwer then set the This document is the updated CSR policy ambition statement "The Covenant with Nature" on paper. It contains our values, vision and version of their CSR policy ambitions with regard to honest and sustainable business. At that time another leap into the deep, published in 2001. but now it feels like one naturally part of our company. Because a lot has changed over the years, in 2014 we adjusted our ambition statement further, tightened and redrew this policy together with all employees. Strategy. People, Planet and Profit are central to our strategy. People planet profit= sourcing Sustainability in mind locally, with respect for nature. We connect with everyone who believes in freedom and independence as the most important They want to connect with Believe in independence ingredients for innovation, change and, above all, exceptional quality. De Vrije Brouwer does everyone who believes in Believe in that along three pillars independent innovation. independent action. Independent Family Brewery As Vrije Brouwer, we determine our own course. We are free to do They determine their own course, Believing independence what feels right. The standards and the values that go with it originated from a tradition of almost they define their own values. 200 years of independent entrepreneurship as a family business. These norms and values are a confirmation of the past and form one solid foundation for the future. Family. The brewery exists since 1825. Director Jan-Paul Rutten and Maartje Rutten (marketing It is a family business, members are Family business and communications), the eighth generation are currently working in the brewery. The Gulpener deeply involved. Beer Brewery thinks in generations. The family is very involved in the brewery. Multiple family members fulfill positions including supervisory director, in the Administration Office Foundation or working in the brewery. The shares are owned by the family. We are an independent family brewery that brews the tastiest quality beers in a sustainable way Gulpener is a family quality Family business with its own, raw materials from Limburg. As a Free Brewer, we are constantly experimenting brewery with sustainability in mind. with innovations to enrich the taste of beer: Co2 emissions. We want to minimize our CO2 emissions. We do this by sourcing raw materials The aim to reduce CO2 emissions Reduce CO2 emissions from the immediate environment and make use of solar panels and green electricity. by sourcing locally and using Create Nevertheless, Gulpener also emits CO2. With our business operations, we produced 1,498,555 renewables. They emit 1,498,555 sustainability kilos in 2017 kilos of carbon in 2017. though actions on . To compensate this, we have created the five-hectare forest "the King of Spain" in Gulpen To compensate for emmissions they Reduce CO2 emissions CO2 emissions, Furthermore we have set up an ambitious investment plan for the total renewal of the brewery's have planted a forest and are certification, hardware. Including a completely new brewhouse, which should be operational by mid-2019. opening a less polluting brewhouse. waste, regional This reduces us our CO2 footprint in the next five years by at least 20%. sourcing. 79

We obtain 50% of our energy from renewable sources. The green energy that we purchase is They obtain renewable energy European wind energy, the certificates of which comply with the EU decision on renewable compliant with EU regulation. energy and therefore also to CSR criteria. Thanks to our investment plan, this percentage will increase further in the coming years, Local resources. With the knowledge that you can brew the tastiest beer with the Limburg raw They have set a cooperative to Sourcing locally materials and with the desire to shorten the chain, the Triligran cooperative was established in locally source ingredients, and 1996. A unique collaboration with around 30 farmers from the region that would prove support farmers beneficial to both parties. We are insured with Limburg barley, high quality wheat, spelled and rye and according to the strict requirements of Milieukeur or organic grown. The farmers are assured of a fair price and structural purchase. For Limburg that means diversity in the landscape. Our hops also come from the region. In Reijmerstok, a village near the brewery, the family is Hops are also locally sourced and Sourcing locally renovating Wouters to produce environmentally friendly types of hops that are indispensable for the harvest is a special event in their our beers. The harvesting the hops around the second sunday of september is a special moment calendar. every year shared with family, friends and relations of the brewery, during our annual Hop harvest. Hops, grains and water are the most important ingredients of beer. Our grains and hops carry They have environmental Certification of raw minimal the Milieukeurmerk, part of it is even organic. This means that all our raw materials are certification for their raw materials. materials 100% Milieukeur certified or organic. The water we use for our beer comes from our own sources and is purified by marl. from They have their own well. They aim Private well. In 2017, we collected 89,056 m³ of water from these sources. Our goal for 2018 is to keep this to prevent higher water use with stable consumption. With a growing demand for our specialty beers, water consumption is also growth. increasing. We want prevent a further rise and thus are implement new measures to do so. Our brewery is the first and only brewery in the Netherlands to receive the Milieukeur logo Their beers have a environmental Certification of beers use. Stichting Milieukeur is a Dutch quality mark for products and services that support the certification, the only beer in environment, use less raw materials, energy and water, harmful substances, packaging and Holland to have this. waste. All our sixteen beers can carry this Milieukeurmerk. We can also put the "Certified Regional Product" quality mark on all our beers. This recognition Their product carries a regional Regional actor means that our beers and raw materials come from the region and that processing takes place in certification. the region. Furthermore, during production, attention was paid to the preservation and management of the characteristic values of the landscape and nature. The European organic quality mark (Skal) makes it clear that the product meets the EU rules for Some of their beers are certified Certified organic this biological agriculture. The logo is mandatory on all organic products made in the European organic by the EU. Union 27 (EU). So also on Gulpener's organic beers: Ur-Pilsner, Ur-Weizen and Ur-Hop and IJsbock. The European organic quality mark is a top quality mark due to the high demands in the field of control, transparency and sustainability. We strive to be annual 10% more organic raw materials to process in our beers. Residues. Bostel is a typical example of a residual from the brewing process. Residues are used by local farmer, Recycle waste This consists of the residue from the malt batter that remains after it bakers as a raw materials. wort is deducted. The bunch is highly sought after as animal feed and we supply to farmers within a 40 kilometer radius of the brewery. In addition, we have entered into a partnership with Bakery and Graanpakkerij De Bisschopsmolen in Maastricht. Dough barley bread 80

is made with Gulpener beer broth. We also work with Carl Siegert Bakery. Together we developed the Puurzaam 1891 Bol with Gulpener beer broth. In the sixteenth century it was normal for bakers to use beer broth in their sourdough. It makes the bread nice and tender and fiber-rich. It also reduces cholesterol We find that a nice additional benefit. Bierbostel also contains a lot protein because the carbohydrates were extracted during the brewing process.In this way we bring craft, characterful taste and vitality together a product. Packaging. Gulpener's goal is to minimize the the environmental impact of packaging. Currently They aim to minimizer the impact Minimize environmental more than 95% of our consumer packaging material is reused. For the beer that of their packaging. Most of their impact we sold in bottle in 2017, 98% is bottled in return bottles. These bottles come through the packing is recycled. deposit system back in the brewery and are reused. Of course, the labels and packaging, such as six-packs are not recycled. All our waste, such as glass, paper and cardboard, is separated. This is picked up by Van Gansewinkel. We hereby meet all requirements from the environmental law. Regional is the standard: We have long believed in the power of our own region and They wish to remain regional. Source locally the connection with local partners. This reduces environmental impact, because among other Sourcing locally to reduce things there is less transport but also ensures regional solidarity and environmental impact and create joint pride. In addition to regional raw material sourcing for our beers we have a regional set-up regional cohesion. for our BrouwLokaal (construction and catering concept), this principle forms the basis of our future actions. Fossil fuel-free in 2030: We want to brew all our beers by 2030 at the latest without using They want to be fossil fuel free by Reduce CO2 emissions fossil fuels. A first step will be at the end of 2018 when a new brew house is put into use. This 2030. must be the most sustainable brewery of its size in Europe to become. This means we reduce our CO2 emissions by a minimum 20%. From now on cleaner than in 2017: We use the pollution level of the year 2017 as a benchmark There emission benchmark will be Reduce CO2 emissions and have the ambition to never pollute more than in 2017, regardless set as 2017. any future growth in volume. Pollution includes others the CO2 emissions and the (residual) waste flows. Ambition to grow organic beers: We believe in making our food chain more sustainable through They wish to increase organic Source organically use making organic raw materials. That is why we strive to increase our use of organic materials production. by 10% per year.

Sustainable Investments In 2017, a number of investments were made in the production They are introducing new steam Reduce CO2 emissions department to make our brew process more sustainable; boiler, centrifuge to reduce water . For example, a number of adjustments have been made to the steam boiler. We also installed an and raw materials use. economiser that will reduce gas consumption by 3-5%. In addition, there is one centrifuge installed that ensures that beers that were previously filtered, are now treated with the centrifuge. This has the advantage that there is less load for the employees (less heavy hoses), less water and less kieselguhr (raw material for filtration) is used. As a result, the waste stream from kiezelguhr decreases. local prosperity. Thanks to Gulpener, hops have been grown in the Netherlands since 2001. The source products locally to Source locally Gulpener accounts for more than 95% of all raw materials from local farmers. The local and support the local economy. regional purchasing of our raw materials brings additional costs, around 300,000 euros a year. 81

For us as a Free Brewer, however, a conscious choice. We do not go for the lowest price via purchasing on the world market. Local and regional purchasing is important social value. We ensure that the farmers with whom we collaborate receive a good price and have income security. In a rural area such as Limburg, where the economic structure is weak, it is important that we remain established in Gulpen and thus maintain local and regional employment and stimulate.

Appendix J Please note that the colors in the chart do not have a specific meaning, they are merely in place to help distinguish between different themes. Table J.1. Thematic framework chart Jumbo (2018). Meaning Unit Condensed meaning Unit Sub-theme Theme A sustainable shop. Jumbo is working from different angles to make its range and Jumbo is aiming to make its products and Sustainable goals operational management more sustainable and is so closely follows market developments. operations sustainable Sustainable goals of This is how it respond well to social issues &developments. Jumbo Products with respect for people, animals and the environment. Jumbo wants to provide products that Respect for respect people, animals and the surroundings environment. Reduce environmental impact Jumbo want to reduce environmental Reduce impact impact Doing business in society Jumbo wants to be active in society Be active in society Animal welfare In the area of animal welfare, Jumbo made progress in 2018 in making its Made their chicken selection more Actions to Fincrease range more sustainable. So sustainable. animal welfare Individual actions to steps were again taken in 2018 to make the Jumbo New Standard Chicken more sustainable, achieve sustainability including through early goals. feeding ’. This means that all chicks get water and feed immediately as they crawl out of the egg. Animal welfare was increased feeding Actions to increase Previously this was not the case, because they had to wait until the rest of the chicks had chick earlier. animal welfare hatched. Immediate access to water and feed has a positive effect on the welfare of the chicks. Jumbo is the first supermarket chain that has completely switch to this method. With the New Standard Chicken, Jumbo has been at the forefront of making chicken sustainable for quite some time.

In 2018, Jumbo seized upon the national Beter Leven Week of the Dierenbescherming to Jumbo increased animal welfare through Actions to increase increase the number of its products that bear the Beter Leven quality mark. carry certified products. animal welfare A large part of the private label snacks now also have the label, including the croquettes, Jumbo increased animal welfare through Actions to increase croquettes and satay, as well as part of the range of chicken sticks, chicken nuggets, carry certified products. animal welfare hamburgers and frikandels. Also the private label assortment eggs completely changed to the Beter Leven quality mark in 2018. This further expansion of products with Beter Leven quality mark fits in seamlessly with Jumbo's ambition to be a forerunner in the field of animal welfare. Organic. he range of organic private label products was further expanded in the course of Jumbo is increasing its range of organic Action to increase 2018 with vegetable preserves, meat substitutes and soup in a bag. The number of organic products. organic range products under the Jumbo Huismerk grew to 277 in 2018. The new organic smoked sausage attracted a lot of attention in 2018. Organic dairy from the Jumbo Huismerk now has so-called biobased packaging. In addition, Organic packaging and laser labeling Action to limit In the summer of 2018, Jumbo was the first national supermarket chain to introduce a natural reduce packaging. packaging impact label to some organic products, 83

such as ginger, butternut squash and zucchini. A special laser technique is used for this, which makes it possible to display "organic product" without the use of packaging material. This was among other things the case with the entire assortment of cereals, soft drinks, and Jumbo has decreased the Salt contents in Action to increase seasoned potatoes, bread, cheese and dairy. In addition, Jumbo has considerably reduced the the product it supplies. healthy product amount of salt in its fresh meat products during 2018. Hundreds of popular products - from hamburgers, bacon and saté skewers to bratwurst, minced meat and slaves - have been examined. The total fresh meat assortment now contains on average 20% less salt. This comes down to about 27,000 kilos less salt per year. Moreover, where possible, allergens have been removed from products and the number of e- Allergens and e-numbers have been Action to increase numbers reduced. These improvements are entirely in line with Jumbo's objective of reduced where possible healthy product constantly making new quality improvements to it flat in tasty and healthy food. Kids marketing. In 2018, industry-wide work was carried out on guidelines for combating Jumbo has steered its advertising for kids Action to increase so-called branded characters on products. End of 2017. Jumbo had already stopped this with towards healthy products. healthy product unhealthy products. Jumbo now places a much stronger focus on tasty and healthy kids products and uses strict criteria for this in the range development. The co-branding with the figures Woezel & Pip products are catching on in this category. Ten new products were launched under this sub-brand in 2018, including watermelon sticks, whole-grain vermicelli, apple wedges, carrots and organic multigrain porridge. Based on the spearheads from the Jumbo multiyear report, Jumbo is working on five current Jumbo is working together with customer, Collaborating with sustainability themes, together with customers, employees and other stakeholders: employees and stakeholders to create stakeholders Collaborate with a sustainability range of stakeholders On the way to PlanetProof. In 2016, Jumbo made agreements with Greenpeace about making Green peace and Jumbo collaborated to Collaborating with to achieve the fruit and vegetable supply (potatoes, vegetables, and fruit) more sustainable. according to increase the sustainability of F&V by NGOS sustainability goals. the PlanetProof guidelines. With this Jumbo, among other things, started the fight against meeting planet proof guidelines. bee mortality. Jumbo was also a partner in Beedeals in 2018, a partnership that strives for an improved Jumbo is partners with beedeals to Collaborating with living environment for bees. The number of growers participating in Beedeals has once again stimulate farmers to take bee health into NGOS increased, among other things due to the entry of the potato growers who supply Jumbo’s account. table potatoes. Agreements are made with these suppliers and growers in the context of Beedeals to make them more friendly and implement operational management measures. Further sustainable dairy. In 2017, Jumbo made agreements with Milieudefensie to have Jumbo is working with NGO’s to provide a Collaborating with more sustainable milk products on the shelves by 2022 . In order to strengthen the forerunner range of products that have a positive effect NGOS position, Jumbo made preparations in 2018 for both the Beter Leven quality mark (BLK) as on animal welfare, biodiversity, a PlanetProof for dairy products under the Jumbo Huismerk. Both quality marks place environment and climate various accents on criteria with regard to. animal welfare, biodiversity, environment and climate. With these quality marks, Jumbo focuses on a wide, varied and affordable range fresh dairy. Jumbo also contributes to reducing food waste on other fronts. This is how Jumbo made Jumbo works together with Too good to go Collaborating with preparations to participate in a pilot of the organization Too Good To Go that collects to prevent food waste other buisnesses surplus products in using an app a so-called Magic Box. Participants in Too Good To Go can 84

purchase a Magic Box for a low price through the app thus participate in the fight against food waste. Jumbo is also involved in a pilot of Wasteless, an international start-up who applies a Jumbo works together with wasteless to Collaborating with machine-learning solution with real-time tracking of supermarket stocks, based on which prevent food waste other businesses customers dynamic prices are offered, depending on expiration dates. In addition, Jumbo is affiliated with the Initiative Food Waste Monitor of the Centraal Jumbo works together with CBL to prevent Collaborating with Bureau Levensmiddelenhandel (CBL). EU member states are considered to be the size of to food waste. government monitor food waste at national level. The CBL has taken the lead in this for the Netherlands and is contributing working with its members to chart the situation. Jumbo has also encouraged customers to waste less. She did this among other things with tips and inspiration in her magazine, on the label and with the help of various tools. Jumbo works closely with stakeholders, external experts and accredited inspection institutes Jumbo strives to guarantee products respect Collaborating with where possible. So for people, animals and environment by Stakeholders where necessary, it shall establish an appropriate audit methodology in cooperation with working closely together with stakeholders, partners. As products claims or specific external experts and accredited inspection claim product properties, prior checking takes place. In this way, Jumbo wants to guarantee units. that these products deliver on their promises.The working and living conditions of people working in the food chain deserve special attention, according to Jumbo. Jumbo makes every effort to improve this. In dialogue with stakeholders. For Jumbo as a company at the center of society, its social Jumbo sees the need to collaborate with Collaborating with corporate social responsibility (CSR) and great social involvement interest. Jumbo not only societal stakeholders to create effective stakeholders wants to be there every day for its customers, the company also wants one CSR policy. make a positive contribution to society. That is why it is optimal relationships with all stakeholders of great value. By listening carefully to what is going on in it umbo can learn a lot from her immediate environment. Jumbo shares shared insights and knowledge moreover able to respond better to various developments in the society. Cooperation with suppliers Jumbo works with suppliers to create Collaborating with Jumbo works intensively with its suppliers and strives for a strategic partnership for the strategic partnerships other businesses longer term.

Jumbo also has further expanded its participation in the non-commercial Betaalme.nu Jumbo is active in a government project to Collaborating with initiative. This project, an initiative of the Ministry of Economic Affairs and Climate, aid the liquidity of SME. government provides for shorter payment terms for SMEs. Both initiatives have a positive effect on the working capital of suppliers. Because they have to rely on external financing less often, they become financial burden and there is room for further growth. Government and politics Jumbo is in regular contact with Collaborating with Jumbo is in regular contact with government and political representatives. The aim is to government institutions to inform them on government inform these parties about the operational management choices made within Jumbo. In 2018, the choices made within Jumbo. for example, Jumbo consulted with various ministries, such as the Ministry of Economic Affairs and Climate, the Ministry of Infrastructure and Water Management, the Ministry 85

of Agriculture, Nature and Food Quality and the Ministry of Health, Welfare and Sport. In addition, Jumbo regular contact with the province of Noord-Brabant and various municipalities. . Multiple Jumbo stores in different places also spoke to local authorities in the context of Jumbo is active in government initiatives to Collaborating with their Youth On Healthy Weight (JOGG) approach. Jumbo also has various MPs visited her tackle food waste and healthy lifestyles. government stores. Jumbo was able to share its vision on social issues during these working visits topics such as health, food waste and alcohol and tobacco. Public Private Partnerships Jumbo is active in multiple public private Collaborating with Jumbo is active in various partnerships and Public Private Partnerships (PPP). Below is an partnerships government and overview business displayed. Centraal Bureau Levensmiddelenhandel [Central bureau for food trade] (CBL) Jumbo is a Jumbo is active in CBL to discuss issues Collaborating with member of the CBL, the branch association of supermarkets. There is a broad one delegation around sustainability, healthy lifestyle and government of Jumbo employees involved in various topics and consult both in terms of assortment and working conditions. that of employees, distribution centers and stores. Central to this were the topics sustainability, health, food safety, alcohol and tobacco compliance, training, safety, energy saving, communication and working conditions. Data2Move Community. The Data2Move initiative consists of a research community Jumbo works with Data2move to increase Collaborating with dedicated to using the Internet of Things and Big Data in applications for logistics and supply chain efficiency. business supply chain management. This also includes collaboration with companies, including Jumbo. Data2Move focuses on four projects that use data common thread, namely logistics solutions for the so-called last mile, inventory management, understanding consumer wishes and needs and collaborating supply networks. evofenedex Jumbo actively participates in the evofenedex association. So Jumbo has a seat Jumbo works with ecofenendex to discuss Collaborating with in it General Board, is chairman of the South East Regional Council, member of the Council sustainability and market efficiency. business for Own Transport and member of the Council for Logistical Knowledge. The Councils advise vofenedex about logistical issues of a strategic and tactical nature. Spearheads are: accessibility, sustainability, trade facilitation, labor market (training and career) and innovation. Green Protein Alliance (GPA) In this partnership, since 2017, Jumbo has joined forces with Jumbo works with other suppliers and Collaborating with other suppliers and producers of vegetable proteins. Working together these parties to create vegetable suppliers to facilitate a transition business the so-called protein transition, which seeks a shift from animal to a more vegetable-based from animal to plant protein food system. food pattern. Krajicek Foundation - King's breakfast The Krajicek Foundation organizes the King's Games Jumbo works with the karijcek foundation Collaborating with every year. Prior to this Jumbo offered the King's Breakfast for the sixth time in a row. For to encourage health breakfasts for children. NGO the first time Jumbo's Council of Children this year contributed to the composition of this meal. The King 's Breakfast once again conformed to the guidelines of the Disc of Five from the Nutrition Center. Jumbo offered a total of 1.2 million breakfasts. Logistics Community Brabant (LCB) LCB ensures sustainable innovation and growth of Jumbo works with LCB to sustainable Collaborating with logistics in North Brabant. This optimizes productivity and quality in the sector and grows innovation and growth of logistics in North government the Brabant economy and social welfare in the province. LCB does this through the Brabant. 86

strengthen the innovative power of logistics in North Brabant. LCB delivers this through knowledge development and application and helps in the development of excellent physical environment. Jumbo is a member of the Advisory Board and thus provides input to the direction and activities of LCB. Nature & Environment Foundation – MeNU of Tomorrow Jumbo wants to inspire its Jumbo works with the Nature and Collaborating with customers to eat tasty, healthy and sustainable food and helps them when making this choice. environment foundation to encourage NGOs Jumbo cooperates with the Nature & Environment Foundation sustainable and health consumption. To create MeNU van Morgen[tomorrows menu]. This project aims to show customers that tasty,healthy and sustainable food does not have to be expensive or complicated. The Voedingscentrum supports the MeNU van Morgen.

Appendix K Please note that the colors in the chart do not have a specific meaning, they are merely in place to help distinguish between different themes. Table K.1. Thematic framework chart Natures pride (2016). Meaning Unit Condensed meaning unit Sub-theme Theme Sustainable business plan 2023, We are taking action on the UN sustainable Natures pride(NT) is acting Acting on SDs development goals according to the SDGs Sustainable goals of Nature pride Vision, making the world healthier and more sustainable. NT want to make the world more Make the world better sustainable and healthier Good business, improve livelihoods, Quality education and decent work and NT wants to aid in education and Social goals economic growth economic growth 100% social compliance & top themes behind social compliance 100% social compliance Social goal Development of communities through education& knowledge sharing Development of communities Development goals Strategy Is set around Four objectives Reduce environmental impact Reduce environmental impact Environmental goals Reduce food waste, Reduce food waste Food waste goals 100% reusable packaging Reusable packaging. Environmental goals Reduce CO2 emissions by 1/3 Reduce c02 emissions Environmental goals Strategy is set around goals to be Sustainable water management in our sourcing areas. Sustainable water management Environmental goals achieved by a certain time. 2019 100% social compliance 100% social compliance Social goal 94% of the grower s are socially compliant according to SIFAV 94% of growers are socially Social goal compliant Social compliance solutions for small growers, Identify chain risk for project based Identify risks and solutions Social goal compliance 2023, 100% growers are socially compliant Social goal 2019, Manage projects beyond compliance, Development of communities through Develop communities and Development goals education and knowledge sharing, Further professionalize nature prides professionalize to meet social foundation. Create roadmap for education and knowledge, Start new nature prides compliance. foundation project and manage ongoing foundation projects Reduce food waste through quality Food waste goals 2019,Reduce food waste improvement and new packaging. Reduction of food loss, Quality improvements at 5 mango gowers to improve quality Improve our clean chaintest with organic peels to increase shelf life 2023 Tackle the main causes for loss from soil to outgoing transport for mangos Prevent losses along supply chain, Food waste goals and avocados. 100% food loss valorized valorize food loss. 2019 Keep >50% of loss avocados for human consumption, Valorise maximum of Reduce loss & valorize avocado Food waste goals 2.5% avocado loss as low value losses. Increase knowledge for loss of mangos Optimize/automize sorting process for maximization of volume to be valorised 2023. 100% valorization of loss mangos and avocados still suitable for human 100 % valorization of mango and Food waste goals consumption avocado lasses 88

Reduce environmental impact 2019, 100% recyclable or reusable packaging, Impact analysis on current packaing 100% recyclable plastic, research Environmental goals Determine adaptations, start implementing adaptions, phasing out black plastics, and implement solutions. Start discovering packaging of the future 2023 Optimize 80% of packaging, Omit packaging where possible Optimize 80% of packaging, omit Environmental goals packaging where possible. 2019 Reduce co2 emissions through Environmental goals Start co2 reduction by expanding electric fleeting, solar panels and LED lighting. expanding electric fleet, solar panels, led lighting Reduce co2 emmisions in transport Environmental goals 2023 Reduce CO2 emissions by 35 % in terms of mobility energy and waste packaging and loss, 30% in terms of transport 40% in terms of packaging 50% in terms of loss

2019 . Sustainable water management in our sourcing areas. Prepare foundation for Create sustainable water Environmental goals implementing water policy management through a foundation Promote water policy internally and externally(growers & customers) 2023/Sustainable water management in our sourcing areas is a priority for existing Make sure sustainable water Environmental goals growers and is fundementral selection criterion when sourcing produce. management is implmenetde in sourcing areas and for new suplliers

Appendix L Please note that the colors in the chart do not have a specific meaning, they are merely in place to help distinguish between different themes. Table L.1. Thematic framework chart Royal A-ware (2017). Meaning unit Condensed meaning unit Sub-theme Theme Sustainable business is an important part of our corporate philosophy and business Sustainable business is an Importance of operations. We believe in the importance of taking responsibility for people, animals, important part of business sustainability Report concerns the planet, and society in order to leave a healthy planet for future generations operations sustainability Focus on people, animals, and the planet. Royal A-ware aims to become the most valued RA wants to be the most Focus on sustainability strategy of Royal- chain partner for its clients. We organise the chain based on the needs and requirements of valued partner to its clients, A-ware our clients. Naturally, the flavour and quality of our products is extremely important. focusing on quality and sustainability. In addition, consumers increasingly expect their products to be made with awareness for Customers are increasingly Customer demand people, animals, and the planet. They want delicious cheese and dairy that they can demanding sustainable sustainability enjoy with a clean conscience. products. Taking action This annual CSR report describes our approach to sustainable business – an This report describes their Approach to approach that gives our employees and dairy farmers the opportunity to share their approach to sustainability. sustainability opinions. They ensure that Royal A-ware further improves the sustainability of its business Employees are the driving Employee implantation operations. They work hard every day with respect for food safety, people, animals, and force behind sustainability of sustainability the planet. This makes me proud. We work together to have a positive impact on our policy. planet. I hope you enjoy reading this report! CSR POLICY For generations, Royal A-ware has been committed to making a positive RA wants to have a positive Focus on sustainability impact on impact on people animals and people, animals, and the planet. This commitment is reflected in our CSR policy. the planet.

Considering the entire chain Royal A-ware aims to organize its chains as efficiently as RA wants to shorten supply Shorten supply chain possible. After all, shorter chains lead to fresher products, greater transparency, and more chains to increase Supply chain sustainability. sustainability. sustainability For Royal A-ware, improved sustainability affects the entire chain, from consumer to RA hopes to create Improve supply chain processor and from product to dairy farmer. In this sense, every link in the chain has its improvement through the own supply chain responsibility. By taking steps at every stage in the chain, we can make a real difference. Environment. Limit the impact on the surroundings of Royal A-ware and its chain partners RA wants to limit its impact Limit impact of supply through innovation and by optimising the process, the product, and the chain. of on the environment chain. throughout its supply chain. 90

What are your goals for the future? Our goal is for customers to see us as their most valued RA’s goal is to be the most Innovate the supply chain valued chain partner in the chain partner in the agrifood industry. agri-food industry.

FUTURE-READY DAIRY FARMING CSR MANAGER SOPHIE SNAAS Future of sustainable dairy Sustainable dairy Meeting demand Royal A-ware works with enterprising dairy farmers in the northern provinces of the RA works with enterprising Farm level innovation for different milk Netherlands. They provide us with the best milk for the tastiest cheese. CSR manager dairy farmers to deliver milk. streams Sophie Snaas explains the meaning of future-ready dairy farming and the different milk flows processed by Royal A-ware. We also talk to dairy farmers Fokkema and Van der Broek about delivering suitable milk flows What is Royal A-ware's perspective on future-ready dairy farming? 'Royal A-ware updated RA wants to balance the needs Balance its vision on sustainable dairy farming in 2017. Our challenge is to ensure future-ready of farmers, cows and the dairy farming and dairy production in which the farmer, the cow, and the environment are environment. in balance. Our skilled dairy farmers meet the standards set out in the Keten Kwaliteit Melk (KKM) Their farmers meet KKM Farms meet regulation and make their own business decisions with respect to sustainability. Tracking the latest standard and make decisions market developments is crucial to doing future-ready business. with respect to sustainability. Our clients are now making special demands when it comes to different milk flows, Costumers demand different Different milk streams such as dairy products made from organic milk, standard milk, and milk with a focus on standards of milk. animal welfare. Our dairy farmers can choose to supply the milk flow that suits them best. They can also Farmers can choose to meet Farmers chouce choose to take additional steps with regard to sustainability.' which standards they want to meet. Which milk flows does Royal A-ware process? 'Royal A-ware processes a variety of milk RA produces a variety of Different milk streams flows. In addition to standard quality milk, we process Dutch grass-fed milk, organic milk, different milk streams. and A-ware milk for Albert Heijn. All milk flows meet the applicable European regulations and the requirements laid All milk flows meet KKM and Different milk streams out in the KKM. EU regulations. Grass-fed milk comes from cows that are allowed to pasture graze for six hours a day, 120 Grass feed cows are outside 6 Different milk streams days a year hours a day 120 days a year. Organic milk comes from cows that are raised according to organic Organic milk comes from Different milk streams farming methods. organic cows. These methods are subject to regulations governing the use of medication and artificial Organic is classified according Different milk streams fertilisers, and require all feed ingredients to be organic as well. Farm milk is real Dutch to medication and fertilizer milk use. with a plus. 91

This type of milk must meet various requirements with respect to the cow, the stall, AH milk is produced Different milk streams the farmer, and the feed. The Albert Heijn milk is processed into cheese and other typical sustainably. Dutch dairy products sold under the AH private label. These dairy products are sustainably produced and have transparent origins.' In order to optimally meet the needs of our customers and the changing market, it's RA wants to innovate to meet Meet demands important the needs of a changing that we continue to improve and innovate.To achieve this, we are investing in the future market. and taking steps to deliver products that meet the needs and wishes of our ‘[;customers.' ENERGY CONSERVATION HEERENVEEN CHEESE FACTORY Achieving The Heerenveen cheese factory processes milk into delicious cheese. Below we interview Interview on sustainable Sustainable processes sustainability by technical project manager Sjouke Feenstra, who explains the process of sustainable cheesemaking. using and cheese-making and his ambitions for the future. improving How is the cheese factory embracing sustainability? The cheese factory in Heerenveen is RA factory uses LED lights Energy efficient efficient water, highly sustainable and uses LED lights and energyefficient electric engines. and energy efficient machines processes energy and waste There are also 5,600 solar panels on the roof, which generate RA uses solar panels. Renewable energy disposal 10 to 15% of the energy we need. production processes. Our milk tanks are also extra-insulated, which means the milk stays cool. Because of this, RA uses extra insulation and Energy efficient the incoming milk doesn't have to be re-cooled and the "cold" energy from the milk can be heat pumps to increase energy processes reused to cool other processes. We also recover heat and cold generated from the efficiency. production process and use it to heat or cool our other processes.' What did you focus on this year? 'This year's focus was on minimising water consumption RA wants to minimize water Efficient water use and reusing water. consumption. processes The whey released during the cheese-making process is piped to the Fonterra ingredient Whey is sold to other parties Waste disposal factory next door processes The cold water goes back to the cheese factory and is used for a range of purposes, such as Water is resused. Efficient water use for cooling processes and cleaning machines.' processes In recent years, we explored the possibility of reusing the RA wants to make more use Heat recycling process heat released during the production of ice water, which is used to of heat pumps. cool the milk and the whey. Heat pumps can be used to increase the temperature of this residual heat, which in turn can be used to pasteurise the milk and the whey. Construction will also start on the mozzarella factory in Heerenveen this year. We plan to RA will use heatpumps in a Heat recycling process use heat pumps to generate the heat and cold energy we need. This will allow new facility. us to reuse more heat in addition to the cold.' The front of the factory was re-insulated to further reduce noise RA uses insulation to reduce Insulation pollution. As a result, we've reduced our noise output by about 6 decibels. noise pollution This is important, given that our factory is located in a rural environment. 92

The dairy factory also has its own purification system to filter waste water. The water is RA purifies its own waste Water purification first sent to a stabilisation pond, where the purified water filters down into the soil. water. process

Early this year we replaced all TL lighting with LED lighting. Energy efficient lighting is Energy efficient used. processes What are the plans for the future? 'The dairy factory in Coevorden will be renovated and RA wants to use heat pumps Heat recycling process modernised. We plan to install solar panels on the roof and reuse more heat and cold. and renewable energy in new At the moment, a small amount of the cooling water is used for other facility. systems. We want to increase this amount in the future. Together with production technician Johan Tijssen, I determine the best way to further optimise this process. For instance, ways to reduce our water consumption or waste output.' How is waste processed at Bouter Group? 'Producing and packaging cheese generates Waste film is recycled or Waste disposal process different waste streams. For example, residual film is common after the cheese is made into fuel. packaged. This film is collected separately and processed into fuel or new film by the waste disposal company. Paper and cardboard are also collected separately and pressed into bales, which reduces Paper is pressed into bales. Waste disposal process transport. After all, the bales take up less space. Hazardous substances – like residual oil from machines, spray cans, and printer cartridges Hazardous waste is disposed Waste disposal process – are disposed of as a separate waste stream. Most of our residual waste is used to generate of in separate streams. energy.' What steps did you take this year? 'The focus is always on raising awareness among Bouters missions was to raise Raise awareness about employees. They work hard every day to separate the waste streams. We keep our awareness about waste waste employees updated via posters, narrowcasting messages, and team meetings. We also management among spoke to our waste manager tosee which other waste processing steps we could take. employees in the last year. Together, we always try to take the next step in our pursuit of a circular waste process. This means recycling and reusing as much waste as possible.' What will you focus on next year? 'We're trying to determine what else we can do in the Bouters wants to improve Improve waste disposal short term with our waste streams. We're maintaining close contact with our packaging waste management. process suppliers and our waste manager, who give us tips on how to further improve our waste management. Reports tell us whether our waste is being properly separated. Based on these, we can take Waste separation reports help Waste disposal process steps to further optimise this process. This is a continuous process and will remain Bouters optimize waste important for years to come. When developing new products and packaging, we always streams take into account ways to educe the materials we use. Our client wants to achieve a 5% weight reduction Bouters wants to achieve 5% Waste disposal process in packaging materials. We plan to achieve this by using different materials or by weight reduction. 93

developing new concepts.' QSHE: QUALITY, SAFETY, HEALTH, AND ENVIRONMENT. QSHE stands for QSHE department is QSHE responibsilities Quality, Safety, Health, and Environment. The QSHE department is tasked with responsible for the quality, overseeing the quality, safety, health, and environment policies at Royal A-ware. QSHE safety, health, and Creating manager Ferry Out explains what QSHE environment policy at RA sustainability entails. though quality Can you tell us something about your job? 'As QSHE manager, I'm responsible for the QSHE department is QSHE responibsilities controls. quality, safety, health, and environment policies at the A-ware Cheese division. responsible for the quality, safety, health, and environment policy at RA The quality policy.focuses on three things: food safety, a safe work environment, and Quality policy focuses on food QSHE responibsilities preventing damage to the company's reputation by promoting the positive reputation of safety, safe work environment, Royal A-ware. One way we do this is by selling high-quality products.' PR and delivering quality products. What does the 'quality' aspect entail? 'All Royal A-ware employees are committed to All employees are committed Quality checking of delivering high-quality products. One of the responsibilities of the QSHE department is to to producing quality products. cheese guarantee the quality and safety of our products. For Royal A-ware, quality means meeting all of the requirements our products Quality means meeting Quality checking of are subject to. In addition to our own requirements and the legal requirements, we internal, customer and legal cheese have to comply with the specific needs and wishes of our clients. We've improved our requirements. organisational structure over the past year, for instance by making all of our certificates available to our clients online.' What is Royal A-ware's perspective on safety? 'Royal A-ware wants to provide a safe Risk assessments and resulting Quality checking of environment for its employees in order to minimise the risk of accidents. Risk assessments action is undertaken to cheese and evaluations are carried out to make the workplace as safe as possible. The necessary provide a safe work space. measures are then taken to prevent accidents. In addition, prevention officers are trained at each location. Based on the risk assessments and evaluations, the officers draft a plan of action to Risk assessments and resulting Quality checking of improve safety in the workplace. They also update the plan and make sure it's action is undertaken to cheese implemented. We're currently working on a communication plan in the field of safety. We provide a safe work space. cover a different topic every quarter. In this way, we're raising awareness of workplace safety among our employees.' What steps are being taking with respect to health? 'Health refers to the well-being of our An absenteeism and employees. We've developed a carefully considered absenteeism policy and sustainable sustainable employment employability policy for our employees. After all, they are the driving force behind our policy help to ensure company! We also make personal protective equipment available, such as hearing employee health. protection.' 94

What is Royal A-ware's perspective on the environment. 'Royal A-ware is committed to environment is about the making a positive impact on people, animals, and the environment. The environment is influence of air, soil, water, about the influence of air, soil, water, and sound on the well-being of people, animals, and and sound on the well-being the planet. . of people, animals, and the planet

Appendix M Please note that the colors in the chart do not have a specific meaning, they are merely in place to help distinguish between different themes. Table M.1. Thematic framework chart Royal Cosun (2016). Meaning unit Condensend meaning unit Sub-theme Theme CSR REPORT 2016 This report presents developments in our corporate sustainability strategy, activities and This report sustainability strategy of Strategy results in 2016. Royal Cosun(RC) Corporate Social Responsibility (CSR) commitment is an integral part of our operations. Every year we work CSR is an integral part of RC CSR is important on further improvements to enhance the data and reporting cycle for our non-financial performance. operations. Royal Cosun MISSION Cosun’s objective is to excel in the creation of value from plantbased raw materials for the benefit RC wants to create value from CSR is important sustainability of its customers, growers and staff. Our goal is to make optimal use of the crops while respecting the plantbased materials while respecting strategy environment. the environment. This Sustainability Report is published in digital form only. To increase its readability and functionality, the RC report is published online CSR is report has been posted on our website in HTML format and can also be downloaded as a PDF document. In the commincated event of textual inconsistencies between this English translation and the original Dutch version, the latter shall prevail Of all the businesses that make up Cosun, Suiker Unie and Aviko are the most widely known. They have Suiker Unie and Avika are the most Suiker Unie and traditionally produced sugar and potato specialities respectively. Sensus produces inulin from chicory. Inulin is widely businesses within Cosun. Avika are part of a dietary fibre that reduces the sugar and fat content of foodstuffs. RC SVZ processes fruit and vegetables into concentrates and purees for the food industry. SVS produces concentrates SVZ is part of RC The Duynie group is a trader and distributor of animal feed and develops advanced applications based on Duynie is a animal feed trader. Duynie is part of residual flows and co-products from the food industry. RC INNOVATION Cosun Biobased Products specialises in the development and production of functional green Cosun biobased produces green Sub departments Royal Cosun strategy is chemicals and materials based on renewable vegetable raw materials. Its innovations are used in a wide range chemical and materials. of RC developed by executives, a of applications. of group owned businesses To this end, like the other Cosun business groups, it works closely with Cosun Research & Development Cosun has an independent R&D Sub departments and external research (R&D). This joint R&D centre has a modern and well-equipped facility where it improves the use of department. of RC institutes. agricultural raw materials, innovates process technology, optimises energy management and, in cooperation with customers, develops new products. Cosun R&D also works with a variety of institutions and universities in the Netherlands and abroad. Cosun collaborates with research Collaboration institutions. with research institutes By working with others, we learn through doing and continuously strive to be better. Collaborating helps the leaning process. Collaboration Together, we add lasting value to the agricultural supply chain and strengthen the continuity of arable farming Togethere they add value to the Collaboration in the Netherlands, the Cosun business groups and society. agricultural industry. to cooperate within the supply chain to encourage sustainable innovation, to reduce CO2 emissions before and Cooperate with supply chain to Collaboration after our production processes and to professionalise staff development through training and education. These encourage sustainable innovation with supply chain targets, too, are considered in this report. Corporate social responsibility is an integral part of our strategy. Final responsibility for the policy lies with the CSR responsibility lies with the Board Responsibility lies Board, with the Supervisory Board overseeing the policy´s implementation by the Executive Board. The Chief & executives of Cosun. with board Executive Officer reports to the Board. The business group directors are responsible for setting and Business group directors are responsible Business are implementing their own policies. At Cosun level, the policies are coordinated by the CSR platform. for implanting CSR policy. responsible for implementation. 96

Each business group has its own steering group; some have also appointed working groups in specific areas CSR policies are developed in working such as the environment and employee relations. The business groups’ management teams coordinate, direct, groups within each organization monitor and report on their activities to the Executive Board. The reporting lines come together in the Board. A together with RC’s executive board. , working group at Cosun level compiles management reports and the Annual Report We encourage our staff to get the best out of themselves in a pleasant and safe working environment. Cosun wants staff to get the best out of Staff growth Growth is key to Cosun themselves strategy STRATEGY Our strategy is to achieve profitable growth by sustainably processing plant-based raw materials Profitable growth through sustainably Creating financial into products and ingredients for use in foodstuffs, animal feed, non-food applications and renewable energy. processing plant material growth In doing so, we contribute to the continuity of Dutch arable farming, the Cosun business groups and society in RC contributes to Dutch agricultural Industrial growth general by creating a variety of products, with foodstuffs at the forefront. industry. We consider Europe to be our home market but spread our wings as far as America and China. Europe is the home market but is active International in America and china growth Profitable growth is a means to create value. We have prioritised organic growth in our core activities in order Profit in core activities finances Profit finances to retain or even increase our market share and growth through the innovation of processes, new ingredients innovation. innovation and new biobased markets. To this end, both Cosun and external organisations have developed registration systems and benchmarks. Cosun and external parties have Registration developed registrations systems. systems are used . The Sustainable Agriculture Initiative Platform (SAI) is such as system.This platform has developed the RC uses SAIFSA to judge the Registration of farmer sustainability assessment (SAI FSA) to analyse the principles and practice of farming. It provides an sustainability of the products it provides. sustainanility insight into the sustainability of crops and growing regions. This is important information because the consideration paid to sustainability within the supply chain depends not only on the crop but also on the growing region and local circumstances. Aviko and SVZ had already been members. Aviko and SVZ are memebers Registration Business use systems are used Crop registration systems. In addition to membership of such international platforms, Cosun also develops its own sustainability systems. Cosun has developed its own Registration Sensus, for example, has developed the Crop-R programme to optimise chicory cultivation and Suiker Unie sustainability judgement systems. systems are used uses the Unitip programme to raise the standard of sugar beet cultivation to an even higher level Sensus analyses the information it collects using the Cimone chicory monitoring system. Every grower is Senus uses Cimon chicory monitoring External personally informed of the results. If a grower is willing to share information about how he grew his crop in the system to advise chicory growers. registration Crop-R system, Sensus can tailor its advice in order to improve his yield. The advice is concerned mainly with systems are used the selection of the field and the seed variety, the sowing time, and the use of fertilisers and pesticides. It also advises on when the crop should be harvested and how the roots should be stored and supplied to the factory. Suiker Unie. The cooperative’s Members’ Council decided in 2016 that the Unitip registration system would Suiker unie(SU) decided all mebersmust External be compulsory for all beet growers in the Netherlands as from the 2018 growing season. use the Unitip registration system from registration 2018. systems are used To encourage growers to use it, Suiker Unie is paying a premium of €250 to every farm that enters its data in SU is paying a preium to encourage External Unitip in the 2016 and 2017 growing seasons. In total, about 60% of the growers did so in 2016. users to use Unitip. registration systems are used To safeguard the harvest and make responsible use of the soil and fresh water, it has been partnering with SVZ partenres with food manufacturers, Collaboration on major food manufacturers, international retail chains, NGOs and local stakeholders for several years. international retail chains, NGOs and water and soil local stakeholders to make responsible issues use of soil and water. This consortium, united in the Doñana Berry and Sustainable Water Management Group of the SAI Platform, This group created a platform for Collaboration on set up a training project last year specifically to promote the efficient use of water (www.ferdonana.es). efficient water use. water use SVZ collaborates to create The first course started at the end of 2016. The ambition is to teach as many growers as possible. It is also in This group aim to educate farmers on Spread knowledge & implement sustainable their interests to use water sparingly in order to protect their long-term future as fruit growers. efficient water use. on water use. water and soil solutions, 97

Even though lack of water is not a problem in the Polish growing regions, SVZ is investing to stay one step SVZ wants to investing in staying ahead Investigate ahead of climate change of climate change in Poland climate change Last year it studied the impact of climate change on the irrigation of red fruit in Poland. SVZ will use the SVZ studied climate change impacts in Spread knowledge findings to advise and train the growers and identify the very earliest signs of risks. Its experiences in Spain Poland and shared this with farmers. on climate change will also be applied in Poland. SVZ is taking measures to increase the traceability of its raw materials. Fruit supply chains are inherently SVZ is improving traceability of crops Measuring complex. traceability SVZ is also studying the sustainability of several crops. Customers are making increasing demands on SVZ is studying the sustainability of Studying sustainability, traceability and transparency. crops to meet customer demand. sustainability To improve the quality of its raw materials, SVZ again trained more than 2,000, mainly small-scale red fruit SVZ trained 2000 red fruit farmers in Training farmers growers in Poland in order to enhance their crops and farm more sustainably in 2016. Poland. It also advised carrot and other vegetable growers on crop protection, crop yields and other aspects that will SVZ advised vegetable growers to Training farmers help them meet market demand and improve their harvests. SVZ again processed sorted fruit that did not sell at increase yields and crop protection. auction in 2016. The business group is investing in knowledge sharing in order to make the best use of its supply chains. SVZ is investing in knowledge sharing. Inevseting in SVZ was awarded a high score by EcoVadis during the year in recognition of its standing as a leader in knowledge sustainability sharing. Suiker Unie advises the growers, for example, on which variety is best suited to a particular plot and how to SU advises growers on how to minimize Reducing minimise the use of pesticides and herbicides. Financial and ecological interests go hand in hand as crop pesticides/herbicides. pesticide use protection agents are a cost to the grower. OPTIMISING THE PRODUCTION RC sustaibility efforts focus on prevent Reduce material PROCESSES. When we process our vegetable raw materials, our care for the environment often comes down waste in raw materials and reducing water, CO2 and to preventing waste. We aim to make maximum use of all our raw materials and consumables, energy, water water use, CO2 and noise pollution. noise and residual flows, and to reduce our CO2, odour and noise emissions. We take a critical approach to road safety around our locations. Focus on individual actions At group level, Cosun monitors the CO2 emissions of its factories, the water consumption of its processes, the RC monitors these waste, water and co2 Reduce material to reduce waste, water use amountof residual matter and the number of complaints made by local residents. levels. water, CO2 and and CO2 emmisions. noise We monitor all our production sites, including those outside the Netherlands apart from the two joint ventures RC monitors facilities abroad, expect for Reduce material in China. The figures are expressed in units per tonne of primary end product so as not to conflate variations in China. water, CO2 and the size of the harvests we process. noise Our energy consumption per tonne of product was lower in 2016 than in 2015. The number of complaints Energy consumption per ton has Reduce energy received about the inconvenience caused by our production processes, however, was higher than in the decreased between 2015-16, yet was use previous year. higher than previous years. Dutch NOx emission standards have been tightened up. All our sites in the Netherlands have taken measures so RC works to meet Dutch NOx emission Reduce NOx that they can work within the stricter standards. regulation emmisions CO2 EMISSIONS The composition and quality of the harvests we process vary from year to year. year. We RC has little impact on energy Reduce energy have very little influence on their impact on our energy consumption. Energy consumption accounts for a consumption. use. substantial proportion of our costs. We have set ourselves the goal of reducing our overall energy consumption by at least 2% on average every RC wants to reduce CO2 emmision by Reduce energy year as from 2010. This saving will also reduce our CO2 emission per tonne of product. 2%/year. use. In recent years, we have nearly always met this goal and we did so again last year. On average, we have RC has nearly always meet their goal. Reduce energy achieved our goal over the past five years and are on track to reach our target for 2020. use. Every additional saving, however, requires an even greater effort to cut energy consumption by 2% per annum Additional savings require greater effort. Reduce energy use. Cogeneration Cosun is constantly seeking ways to make better use of its production capacity and reduce its gas RC is looking to reduce electricity and Reduce energy and electricity consumption. gas consumption. use. 98

Nearly all production sites produce steam as a source of energy. They use natural gas to make the steam and RC sites use steam to produce their own Reduce energy thus satisfy a large proportion of their own electricity needs. energy. use. The CO2 that is released is classified as a direct emission. The indirect CO2 emission is based on the electricity purchased from external suppliers and the average CO2 emission per kWh they declare. Where specific figures are not available, we use national averages. One of Duynie Ingredients’ sites generates electricity using biogas and applies the residual heat to dry its Duynie uses biogas an residual heat Reduce energy products. Using the residual heat in this way has cut natural gas consumption drying to reduce gas consumption use. by no less than 2.2 million m3. To To meet the growing demand expected for its products, Duynie Ingredients will study ways to ensure it as Duynie plans to study ways to Reduce energy sufficient sustainable and profitable drying capacity, either internally or externally. sustainable drying practices as it grows. use. With the help and support of Cosun Food Technology Centre (CFTC), the energy specialists in the business CFTC is optimizing or replacing steam Reduce energy groups are optimising the processes at various locations or completely replacing steam boilers and peripheral boilers. use. equipment. The ultimate goal is to increase energy efficiency even further and thus reduce the environmental impact. The The goal is to increase energy efficiency Reduce energy addition of a seventh step in the evaporation process at the sugar factory in Dinteloord has led to a considerable and reduce environmental impact. use. energy saving, so high in fact that the Ministry of Economic Affairs awarded Suiker Unie the very first Energy Award at the end of 2016. WATER CONSUMPTION. The food industry uses a lot of water, not only to wash the raw materials but also The food industry uses a lot of water. Reduce water use. to process them and to clean the processing equipment. The vegetable raw materials themselves also contain a lot of water that we can use after it has been treated. The total volume of water we use is directly related to the size of the harvests we process. In and of itself, Water use is related to harvest size. Reduce water use. therefore, absolute water consumption in m3 is of relatively little importance. Water consumption per tonne of product in 2016 was unchanged on 2015. Water use was unchanged compared to Reduce water use. 2015 We treat and re-use as much water as we can but for food RC treats and reuses as much water as Reduce water use. safety reasons we cannot do so indefinitely. Because we possible but is limited due quality produce food, the water must be of drinking water quality. reduction. Water that is surplus to our needs is treated in our own facilities and discharged into surface water or into the Water is treated in house and discharged Reduce water use. public sewer. Many of the treatment processes produce methane, which, like natural gas, can be used to power steam Treatment produces methan that can be Reduce energy turbines. used in steam turbines use. Our water treatment plants work to high standards, so high in fact that we can sometimes discharge water into Water treatment meets standards to Reduce water use. vulnerable surface waters subject to strict environmental standards. This makes very high demands on our discharge into vulnerable areas. treatment plants and their management. We are studying potential applications for high quality water from our production processes that we do not RC is study ways to use high quality Reduce water use. need ourselves, for example to water plants in nearby greenhouses. water. WASTE. Cosun produces two kinds of waste: separated and mixed. RC produces separate and mized wastre. Reduce waste. Separated waste is sorted into paper and board, wood, stones, plastic and chemicals. We send this sorted waste Separated waste is sorted. Reduce waste. to external processors. What remains is mixed waste. The amount of waste per tonne of product was higher in 2016 than in 2015. The increase in mixed waste was Mixed waste was high due to the Reduce waste. due to the demolition of an old wash house at the sugar factory in Dinteloord and building work at Vierverlaten demoltion of old wash houses. and other ocations. After allowing for this work, we produced less mixed waste than in 2015. To put the amount of waste into perspective, for every thousand kilos of product that leaves our factories, we For every ton of product RC produces 6 Reduce waste. produce just six kilos of waste. kilos of waste.

Cosun nevertheless intends to reduce the volume of waste even further and make good use of any valuable RC wishes to reduce and reuse waste Reduce waste. residual matter. even further. 99

Suiker Unie’s three sugar factories operate biomass digesters to convert organic residual matter from our SU uses biomass digesters to create Reduce waste. production processes into biogas. biogas. The residual matter is converted only if it cannot be used in applications that have a higher value, such as Waste is only converted when no other Reduce waste. animal feed. higher value use is available. If our biomass digesters cannot handle all the residual matter on site, we prefer to supply the surplus to an If the digester cannot treat all waste it is Reduce waste. external biomass digester. In both cases, we produce a commercial and sustainable application rather than supplied to external digesters. Creating a waste. sustainable alternative. The amount of organic residual matter processed by third parties declined in 2016. The Suiker Unie factory in Supply of external digesters feel to more Reduce waste. Vierverlaten converted more organic matter into green gas in its own biomass digester. Figure 7 shows the actives at the SU plant. amount of organic residual matter that our factories supplied to external biomass digesters or composters. Bio-energy. Suiker Unie produces green gas from vegetable residuals such as beet tops and tails, foliage and SU creates green gas from residuals. Reduce energy some of the pulp remaining after the beet have been processed into sugar. use. Pulp is turned into gas only if the fresh pressed pulp cannot be sold as animal feed. The production of green gas Pulp is only used when it cannot be used Reduce energy is an alternative to drying the pulp, which costs far more energy. as feed/ use. Suiker Unie’s three digesters together produce more than 30 million m3 of green gas per annum. Most of it is SU produces 30m m3 of green gas/year. Reduce energy fed into the national gas transmission network Mostly feed onto national networks. use. Financially this is the most attractive option, although nearly a third of Suiker Unie’s trucks drive on the green This option is financially attractive, Reduce energy gas. This puts into practice our green deal with the government to make our transport operations more although 1/3 of SU trucks also drive of use. sustainable. green gas. Other production units within Cosun have methane reactors that produce biogas from process water. Other RC hhave methane reactors that Reduce energy produce biogas. use. The Aviko factory in Steenderen supplies process water to a nearby water treatment plant that recovers energy Aviko factory supplies water to nearby Reduce water use. (biogas) and minerals (chiefly struvite). treatment plants to extract energy and minerals. This helps close the mineral cycle as the phosphate and other minerals can be returned to the fields as plant This helps close phosphate and other Reduce water use. nutrients. mineral cycles.

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Appendix N Please note that the colors in the chart do not have a specific meaning, they are merely in place to help distinguish between different themes. Table N.1. Thematic framework chart Spadel (2016). Meaning unit Condensed meaning unit Sub-theme Theme Foreword. Sustainable development is an integral part of the Group’s strategy Sustainability is central to Spadel general Mission strategy. Report concerns Since 2010, we have been strengthening sustainability in the group in a structured way. The basis for Spadel has worked on CSR strategy set out in Strategy Spadel Sustainability this is laid down in the ‘Spadel Sustainability Strategy’ which sets out targets to be achieved by 2015, 2010. Strategy 2020 and 2039. The year 2015 brings us to the mid-term, meaning that we can now conduct an initial evaluation of our eff orts towards meeting our goals. We have made good progress, which we would like to share with you in this report To further reinforce this, the Spadel Group has been particularly active in the area of innovation. In Spadel is innovating to create low calorie and Mission addition to the improvements in packaging for each of our brands from the environmental environmentally friendly products. perspective, Spadel has developed a new calorie-free range of drinks with Spa Touch and, in the Benelux region, infused its flavoured water range, Carola in de Elzas, with a fresh dynamism. The new generation of soft drinks without preservatives or artifi cial sweeteners has also been launched. We can state with pride that, as of 2016, all of our fl avoured waters and soft drinks are produced purely using natural ingredients. Further to the publication of the third sustainability report online in 2015 regarding our activities in This 4th sustainability report includes Spadel’s Strategy 2013 and 2014, we have great pleasure in presenting our fourth sustainability. report. We are happy accomplishments as well as strategy. with the KPI results achieved up to 2015. However, we realise that a sustainability strategy is never completely finished. For this reason, we have fully revised our strategy up to 2020 as well as the associated structure. This This report includes a fully revised strategy built Strategy task was undertaken internally with input from all of our directors, senior executives and platform together with Antwerp school of management managers externally with the support of the CSR Competence Center of the Antwerp Management and Sostenuto. School and the strategic CSR consultancy firm Sustenuto. We are on the right track, but continued attention and effort will be needed if we are to achieve all our ambitions by the end of 2020. But a sustainability strategy is never completely finished. In cooperation with the Competence Center The strategy was revised in collaboration with Sustainability strategy for Corporate Responsibility at the Antwerp Management School, Spadel completely revised the the Antwerp management school. built with external help. Strategy strategy and structure in 2015–2016 was developed with For this reason, we have fully revised our strategy up to 2020 as well as the associated structure. This This report includes a fully revised strategy built Sustainability strategy significant input form task was undertaken internally with input from all of our directors, senior executives and platform together with Antwerp school of management built with external help. stakeholders managers externally with the support of the CSR Competence Center of the Antwerp Management and Sostenuto. School and the strategic CSR consultancy firm Sustenuto. We are on the right track, but continued attention and effort will be needed if we are to achieve all our ambitions by the end of 2020. In 2012, a first extensive stakeholder consultation round was held in Belgium and the Netherlands to A stakeholder consultation round was held to General stakeholder validate and supplement the sustainability strategy developed in 2010. The results can be found in supplement the sustainability strategy. dialogue. previous sustainability reports. “Natural” is a concept that everyone thinks they understand straightaway. But once we link the term Spadel used a stakeholder dialogue to define Stakeholder dialogue to with a definition, it suddenly becomes very vague and fuzzy. This is why Spadel entered into natural. create naturalness dialogue with various stakeholders in an attempt to clarify the concept. Two important aspects framework emerged from this which characterise the term ‘natural’ 101

The consultation relating to the naturalness framework was conducted on an individual basis with the Consultation rounds with multiple parties were Stakeholder dialogue to following organisations: PuurGezond, Karott, Union Professionnelle des diplômes en Diététique de held for naturalness framework. create naturalness Langue Française, Plus Retail, Voedingscentrum (Netherlands), Colruyt, Vlaamse Beroepsvereniging framework van Voedingsdeskundigen en Diëtisten (VBVD), FOD Volksgezondheid, Veiligheid van de Voedselketen en Leefmilieu, Compass and SteviaOne. Their visions were also incorporated into the development of the naturalness framework. Coordinateur RSE local There are 5 operational production regions: 2 in Belgium (Spa and Bru), 2 in There are regional CSR coordinators that Stakeholder dialogue France (Carola and Wattwiller) and 1 in Wales (Brecon). There are also two different service areas: 1 translate the central strategy together with With regional in Belgium (Brussels, HQ) and 1 in the Netherlands (Made). The local CSR coordinator translates the stakeholders into action. stakeholders. strategy into a local action plan and represents the local operation vis-à-vis the stakeholders. Talks were held with WWF, Beeodiversity,Natuurmonumenten, IUCN Netherlands, the City of Spa Consultation round with multiple parties for and the Département Nature et Forêts (Walloon region) for the consultation concerning biodiversity. biodiversity. Stakeholder dialogue on On the basis of these talks, the cooperation with Beeodiversity was further stepped up as a way of biodiversity. being able to focus on biodiversity.

Since 2012, Spa Monopole has supported the European project LIFE+ “Ardenne Liégoise” to Spa work with project LIFE+ to improve natural Collaboration with improve the natural and semi-natural habitats in the wet meadows of the Ardennes. This project has habitats in in the Ardennes. conservationists Spadel collaborates been extended to the end of 2019. With multiple partners Spadel works closely together with cities and municipalities, local stakeholders and nature Spadel works with governments local Collaboration with To reach conservation organisations to continuously improve the quality of water resources, the environment stakeholders and nature conservationists improve stakeholders. Sustainable goals and biodiversity. the quality of water resources, natural resources and biodiversity. Spadel cooperates with BeeOdiversity to measure the biodiversity and eff ectiveness of the protection Spadel cooperates with BeeOdiversity to Collaboration with measures at the sites. In 2014, they worked together on the BeeSpa project to install eight colonies in measure biodiversity. conservationists the Spa protection area. BeeOdiversity analyses the pollen that is collected. A total of 22 indicators are observed in this Beeodivsity uses pollen analysis to judge Collaboration with regard, including the quality of biodiversity, the quantity, diversity and quality of the pollen, the biodiversity and chemical pollution. conservationists health of the bees and the quality of the environment. More than 500 parameters are monitored for this latter indicator. This enables any contaminations to be detected. These measurements have been tested in the protection areas of Spa and Bru, with positive results. There are now 16 beehives spread over the Spadel Group sites. No pesticides, phytosanitary products or heavy metals were detected in the area where the bees are No pollutants were detected. The area has a high Collaboration with active. • The local surroundings are advantageous for the development of the bees (high biodiversity) biodiversity. conservationists and their reproduction. The bee population grew from 160,000 to 400,000 in just a few weeks. Spadel plans to create a new national park covering some 14,000 hectares together with the Spadel is creating a national park together with Collaboration with municipalities of Spa and Stoumont and with the ‘Domaine de Berinzenne’. • A new nature reserve local stakeholders. Government of 500 hectares is being created in Spa. • In 2017, Spa Monopole will construct an educational walkway in cooperation with its stakeholders (City of Spa, Service Public Wallonnia and the Domaine de Berinzenne) and PEFC Belgium. This path will allowresidents of the region and the many tourists to discover the unique sustainable forest management, which is exemplary in Europe for the protection of natural resources. Spadel will continue to work to ensure the sustainability of its entire supply chain. • Spadel continues Spadel is working to make its supply chain Collaboration with to work further with Ecovadis to screen key suppliers. • Spadel is developing new tools and sustainable business guidelines to integrate sustainability criteria into all purchases. • 102

Spadel will take part in the Flemish government’s Green Deal Circular for Procurement. Spadel is working with the Flemish government Collaboration with for green procurement. government Transport. As part of the CO2 reduction drive in the area of logistics, Spadel is taking part in the Spadel has worked with logistics Wallonia to Collaboration with “Lean and Green” programme. In cooperation with Logistics in Wallonia, Spadel has developed a reduce transport related CO2 emissions government plan to reduce the impact of CO2 by 20% between 2012 and 2017 Natural products. Spadel intends for its entire product range to be natural by 2020. Spadel range aims to be natural by 2020 Natural products “Natural” is a concept that everyone thinks they understand straightaway. But once we link the term Spadel used a stakeholder dialogue to define Natural products with a definition, it suddenly becomes very vague and fuzzy. This is why Spadel entered into natural. dialogue with various stakeholders in an attempt to clarify the concept. Two important aspects emerged from this which characterise Spadel is working the term ‘natural’ to use all The origin: the ingredient must be naturally present in nature. The basis for the ingredient is derived Must be present and produced by nature. natural ingredients. from biological processes and is not manmade. The processing operation: The process used to obtain the ingredient (e.g. separation techniques) Process to extract ingredients must preserve Natural products is such that it preserves the original chemical composition of the ingredient. chemical composition of ingredient These two elements together form the naturalness framework. The naturalness of the processing Naturalness is defined in a matrix Natural framework operation itself requires further clarification, for which a matrix has been developed. Due to the lack of a clear legal framework in relation to naturalness, Spadel has itself developed a Stakeholder dialogues and European law were Natural framework clear vision of the naturalness of the processes. Given that this is a complex issue, Spadel decided to used to define naturalness formulate clear criteria. During this stage of development, account was taken, among other things, of: the perception of ‘natural’ by the stakeholder, the ISO TC/34 directive and the European legislation on additives and flavourings. This resulted in the naturalness matrix against which our ingredients and processes are weighted in the processing operation. The development of the matrix was analysed and examined with experts in 2015. The naturalness matrix distinguishes between four levels to render the degree of naturalness. The Level 4 is not natural Natural framework lowest level (4) groups together those processes that are regarded as not being natural. Spadel does not use any ingredients that undergo such a process. The processes in the top three levels are distinguished according to their complexity. Level 1 Level 1 is pressing and pealing Natural framework comprises the simplest methods, such as pressing peeling. . The 3rd level comprises somewhat more complex processes such as the use of electricity to achieve 3rd level has more complex processes. Natural framework separation. All of these separation processes are accepTable Nevertheless, Spadel is striving for the simplest processes As of 2016, all of our flavoured waters and soft drinks are 100% of natural origin. Following the All Spadels drink are 100% natural Natural products initial success of Spa Citroen, Spa Mint, Carola Lemon and Carola Grapefruit/Blood Orange, the range was expanded further. In addition, new sparkling natural soft drinks were brought onto the market at the beginning of 2016. All new drinks are low calorie and 100% natural Natural products They are a combination of the Spa natural mineral water and pure fruit with 100% natural ingredients. These are refreshing soft drinks, low in calories, without artifi cial sweeteners, colouring agents or preservatives. Spadel intends to further refine its naturalness matrix in the future by conducting regular monitoring Spadel wants to refine its naturalness matrix Natural framework of naturalness via dialogue with stakeholders and checking new legislation. Packaging. During the period 2015-2016, various efforts were made to reduce the consumption of Spadel successfully reduce material Reducing material materials, e.g. the use of PET. Spadel was successful in reducing a large number of bottles in all consumption. consumption 103

production locations, sometimes even by up to 30%. At the Wattwiller site, the wrapping fi lms are now made of 100% recycled material. However, the total amount of packaging material rose by 11%. This is due to a 24% uplift in sales. Spadel aims to Energy. Part of the CO2 emissions is caused by energy consumption (+-15% in 2016). In 2016, the Spadel reduced energy consumption by 19% Reducing energy Reduce material Spadel Group’s total energy consumption amounted to 94,593 MWh with a 30% renewable energy since 2010. consumption consumption & CO2 share. Despite a 24% increase in sales, Spadel was able to reduce its energy consumption by 19% Emmisions compared with 2010. Spadel is working flat out on new action plans to attain the 2020 target. • Action plans have been Spadel is working hard to reduce energy use and Reducing energy drawn up at each site to achieve an additional reduction of 20% by 2020 and a renewable energy optimize logistics. consumptiom share of up to 45%. • Cooperation with logistic partners to deal with outbound logistics.• Cooperation with Science Based Targets to achieve CO2 targets. The sustainable procurement strategy was continued successfully in 2015 and 2016. Each strategic Suppliers are asked to sign SSPP Sustainable procurement supplier is asked to sign the Spadel Sustainable procurement Policy (SSPP). Furthermore, the cooperation with Ecovadis was extended further to assess the sustainability eff orts Spadel uses ecovaids to judge sustainability of Sustainable procurement of these suppliers. Three KPIs were developed for monitoring the suppliers in line with the objective: suppliers 1/ The number of suppliers that have signed the Uses criteria Sustainable procurement Spadel Sustainable Procurement Policy (SSPP). 2/ The number of suppliers that have completed the assessment via Ecovadis. 3/ The number of suppliers that were given a ‘high risk’ score in this Ecovadis assessment. 93% of the key suppliers signed the SSPP in 2016. In this regard, 81% were screened by Ecovadis All criteria were almost meet. Sustainable procurement and not one single key supplier was found to be in the ‘high risk’ zone. Water footprint. Spadel is striving to achieve a Water Use Ratio of 1.6 by 2020. Spadel wants 1.6 water ratio Water footprint If people protect water, water will protect the people. In recent years, Spadel has made a concerted Spadel wants to reduce water footprint Water footprint Spadel aims to use effort to reduce its water footprint. With a reduction in the Water Use Ratio (WUR) of 26% Sustainable water compared with 2010, the Group Spadel is well on track to achieve the 2020 target. Management practices In 2016, Spadel consumed 1,240 million litres of water from its springs for the bottling process. 99% Spadel used 1240m litres of water, 99% Spring managment of this is ground water. groundwater.

More than half of this (52%) was used for the bottling process and therefore went straight into 52% went straight into the bottle Water footprint the bottles. The remainder (48%) was used, among other things, to clean the bottles, 6% of which was recycled The remainder was used to clean bottles, 6% was Water footprint in Spa. recycled The recycling possibilities remain limited due to the strict hygiene standards in the food industry. 95% of waste water was biologically purified, Recycling 95% of the waste water was purified biologically in 2016. Only in Brecon is biological purification Brecon is still in preparation stage. still at the preparation stage. Spadel uses the Water Use Ratio to measure its water footprint. In 2016, an average of 1.93 litres of Water ratio is falling Water footprint water was needed to produce one litre of mineral water and soft drinks, corresponding to a Water Use Ratio of 1.93. Over the period from 2010 to 2016, this ratio fell by an average of 7% per annum. Sustainable management of the 48 springs also means that Spadel never extracts more water than the Spadel never extracts more water than naturally Spring management quantity provided annually by nature through rain and snow. provided. This means “Wells without depletion”. The Water Exploitation Index (WEI) is used to safeguard This prevents well depletion. Spring management the existence of the water sources. 104

The WEI is the ratio between the average annual extraction versus the average annual water supply in Spadel meets European regulation on water Water management a particular area.For Spa (70% of production), the Water Exploitation Index is, at 4%, well below the exploitation. 10% threshold set by the European Environmental Agency (EEA). Hydration kit. Teachers who want to discuss the subject of hydration in their classes can use the Spadel provides a hydration kit to schools. Encourage hydration hydration kit. Spadel has developed this kit for primary school teachers. They can download this Spadel is engaged in educational kit or order it by post free of charge. various charity Book fair 2016. Spadel was present at the annual book fair in Antwerp under the Spa brand. Visitors Spadel sponsors a book fair where hydration Encourage hydration organizations were educated on the importance of proper hydration via various activities. In addition to hydration, was covered. Spadel is also working on reducing litter. BeWaPP. BeWaPP (For a Cleaner Wallonia) organises “The Big Spring Clean-up” on an annual Spadel is involved in a anti litter campaign in Littering campaign basis. This initiative rallies more than 70,000 people to clean up litter every year. Spadel was involved Wallonia. in the initiative in 2015 and 2016. In cooperation with the City of Spa, the Department of Nature and Forests of the Wallonia Public Service and the non-profit organization Domaine de Bérinzenne, almost 300 kg of litter is collected by our staff every year JOGG In cooperation with JOGG (Jongeren Op Gezond Gewicht = youngsters with a healthy weight), Spadel works together with JOGG to Healthy lifestyle Spadel Netherlands supports the: “DrinkWater” campaign. The aim of the campaign is to reach as encourage healthy lifestyles many children as possible with the message to drink more water Secours Populaire d’Alsace (Alsace people’s aid) Every year, the Carola brand supports almost 200 Carola supports local charities to preserve the Conservation an culture regional initiatives from various sectors, such as sport, gastronomy and environmental conservation. environment and local culture The brand also fundraises for “Secours Populaire d’Alsace”. Wattwiller likewise supports local initiatives and associations, i.e. in the areas of gastronomy, art and culture. Fondation de Recherche sur L’hypertension Artérielle high blood pressure research foundation) The Wattwiller support a cardiovascular research Healthy lifestyle very low sodium content of Wattwiller makes this a benchmark water for low-salt diets, center. particularlyappropriate for people suffering from cardiovascular diseases. For this reason, Wattwiller is a partner of the “Fondation de Recherche sur l’Hypertension Artérielle” (high blood pressure research foundation) in France and runs campaigns to measure the blood pressure of consumers in a number of city centres Hydration Partnerships Brecon Carreg supports initiatives that promote a healthy lifestyle. Including Brecon supports healthy lifestyle initiatives. Healthy lifestyle. ‘The elite Welsh Athletics and social running groups’ via the ‘Run Wales’ initiative.