Bringing Convenience to Good 2013 Corporate Responsibility Report Greencore Group plc

Annual Report and Accounts 2013 Accounts and Report Annual Greencore Group plc Corporate Responsibility Report 2013

2 Business Review and Strategic Report Corporate Social Responsibility Report

As a leading food manufacturer and major employer in the core markets in which we operate, we believe we have a duty to maintain strong integrity and sustainable corporate and social responsibility practices for the benefit of our people, our customers, our suppliers, the Group CEO presenting the Food First Chairman’s environment, our shareholders Award to representatives from Greencore Grocery. and our communities. Introduction We aim to operate in a sustainable and responsible manner. To embed and drive this approach within our organisation we Our Values have developed a framework, which we call ‘The Greencore Way’. This framework is based Greencore conducts its business in a manner which is in line on four core operating principles as described with its culture and values, which are centred on the following in the ‘Strategy and Business Model’ section overriding principles: on page 8: 1) People at the core Performance People 2) Great and safe food 3) Business excellence –– We expect and reward results. –– We believe that people make 4) Cost effectiveness the difference. –– We never accept the status The Greencore Way sets out how we apply quo and we continuously seek –– We treat one another with these principles to our behaviours and actions a better way. respect and dignity. Individuals on a day to day basis. It also creates a vision –– We always do what we say at all levels of the business feel and goals for our desired outcomes with our key we will do. valued and valuable. stakeholders – our people, our customers, our –– We set, measure and monitor  –– We provide ample suppliers, the environment, our communities highly ambitious targets. opportunities for professional and our shareholders. This report therefore growth and development. –– We maintain the highest discusses our vision and goals and how we manufacturing/technical are doing against each of these stakeholders standards. (other than Shareholders which is the key focus of the other sections of the Business Review –– We adhere to a strict and Strategic Report). financial rigour. People at the Core Passion Responsibility ‘Making Greencore a great place to work’ –– We maintain the highest levels –– We leave responsibility with the People are at the core of The Greencore Way of customer-focused service. people at the level where it can but are of course also a key stakeholder. We –– The quality of our products be best exercised. believe that people make the difference to our is the best in the industry. –– We treat Greencore’s resources business and they make Greencore a great –– We have fun and enjoy the (i.e. money/time/reputation) as place to work. work we do. if they were our own. –– We are passionate about –– We maintain the highest levels good food. of ethics and integrity. Greencore Group plc Corporate Responsibility Report 2013 3

Our Company Values Over and above the Group audits, we Greencore has a well-established set of commission specialist third party experts to company values, which are recognised support our continuous improvement process. across the Group. The values are built on As an example, all recommendations from the ‘Performance Matters’, ‘People Matter’, specialist machinery safety audits carried out ‘Responsibility Matters’, and ‘Passion to across all UK manufacturing sites between Succeed’. These values are used as part 2009 and 2011 are now complete. Machinery of our Group performance management safety is one of the main causes of major injury programme, which we call a PRIDE Review. incidents in the food industry and these audits are key to Greencore’s control of this type A Healthy and Safe Place to Work of risk. Greencore aims to have industry-leading standards of health and safety to ensure the Greencore continues to support the HSE safest conditions for our people, visitors and Food Manufacturing Forum by providing a contractors at all of our facilities. representative through our membership of the Chilled Association. We continue to benchmark the Group accident incident rate, shown below. During Greencore is a signatory to the UK the period 2003/04 to 2012/13 there has been Government’s Public Health Responsibility a reduction in the accident incident rate Deal pledges on Health at Work and Physical (AIR), from 2.49 to 0.87 accidents per 100 Activity, supporting the health of our employees. Specifically in the past year: employees. Greencore provides Occupational –– The total accident rate for the 2012-13 year Health services across manufacturing sites as is down 19% appropriate to the size and specific risks of –– Reportable accidents have decreased by the facility. Occupational health is measured 38% year on year annually against industry best practice as Colleagues from our Food to Go category. part of the Group health and safety audit. Our AIR figures demonstrate a continuing improvement in health and safety risk A Place to Develop your Career Greencore is now an ILM (Institute of management. Greencore’s goal is to be recognised as a place Leadership and Management) accredited where people can develop their careers. We centre with dedicated Regional Training 3.0 therefore put much emphasis on learning and Centres. We work with a number of external development to help our employees achieve providers to ensure that we build effective their potential. leadership skills and food manufacturing 2.5 capabilities for our people. Since its launch in Individual and team development is supported 2006, nearly 2,000 Greencore colleagues have 2.0 across Greencore by learning and development participated in the Leadership Academy. programmes. These are formulated to deliver a This has more recently been rolled out at wide range of training needs at all levels. They Greencore’s US facilities. 1.5 include basic technical skills offered to all of our operations staff, such as food safety and A Place Where Everyone’s hygiene training, right through to executive Contribution is Recognised 1.0 development programmes across the UK, At Greencore, putting people at our core the US and . means that we recognise and celebrate the 0.5 outstanding achievements of our colleagues. Learning and development needs are identified through Greencore’s PRIDE This year Greencore has launched the Star 0.0 performance review system. All Greencore Awards programme across UK sites. Star salaried staff and management participate Awards began at our Northampton facility in a PRIDE Review at least once a year. three years ago to recognise the great work 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 Four thousand learning activities will be done by individuals and teams. All UK sites Despite these figures we continue to focus delivered throughout the coming year to can now highlight their star performers on improving our health and safety risk meet both personal development and skills each month. management. We regularly conduct detailed enhancement opportunities identified in health and safety risk management audits this year’s PRIDE reviews. Greencore facilities in the US recognise the across each of our sites. These audits are an Employee of the Month. The scheme is being important driver for managing risk reduction Greencore’s manufacturing sites have extended this year with the opportunity to across the business. A number of our facilities dedicated learning and development nominate Employee of the Year. are independently certified to OHSAS 18001: staff and there is also a Group Learning 2007 and have successfully maintained and Development Manager, whose Some of our sites seek external accreditation this distinction. role is to develop, coordinate and drive that helps to demonstrate the value placed programmes throughout the business. on our people. In September, the Food to Go facility in Manton Wood was re-accredited with its Investors in People standard. Greencore Group plc Corporate Responsibility Report 2013

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Corporate Social Responsibility Report (continued)

Greencore celebrates long service by its staff, Customers Diversity with recognition given to those that have ‘Delivering Excitement, served for 20, 25 and 30 years. At the Prepared The Group recognises the importance and Intimacy and Trust’ benefit of ensuring diversity throughout Meals facility in Sheffield, one colleague Greencore believes in building strong the business. We ensure there is a balance celebrated 45 years with the business earlier relationships with our customers, and between different cultures, ages and this year. Greencore Grocery in Selby holds an in turn consumers. Our goals are: gender. We strive to create a culture annual Christmas Party for pensioners and –– to understand our customers deeply which recruits, promotes and ensures colleagues with 25 years or more service. and commit to helping them win the constant development of women Long service and retired staff enjoy lunch, –– to be an industry leader in food safety in the workplace. entertainment and products from the site. standards and supply chain security –– to be known for innovative and great We celebrate and recognise our food culture Ratio of Men and Women tasting food products through our unique Food First programme Women currently make up approximately which was established in 2003. Each year the Understanding our Customers 38% of our Group-wide employees. In Food First Chairman’s Awards are given to the Ireland, 46% of the workforce are female, sites or teams that have demonstrated just Deeply and Commitment to in the UK approximately 36% of our that, both from a commercial and a cultural Helping Them Win Our dedicated key account teams work closely employees are female whilst in the perspective. In 2013 Greencore USA was with our customers to ensure that our four US 49% of employees are female. awarded the Food First Commercial Award for operating principles (people at the core, its work on the launch. Greencore great and safe food, business excellence, cost All Employee gender breakdown Grocery in Selby won the Food First Culture effectiveness) are aligned to the strategies Award for its ‘Learning Lunches’ programme, United and expectations of our customers. This is Country Ireland Kingdom US an education programme amongst site recognised through the status that we have colleagues on international cuisines. No. of Employees with many of our customers as ‘category Male 22 5,709 606 captains’ or as key strategic suppliers. This year Successes and achievements at Greencore Female 19 3,251 589 we received awards and recognition from are shared through regular communications Total 41 8,960 1,195 our customers for the work we do for them, including site briefings, staff notice boards, including ‘Asda Account Manager of the Year’, the Greencore magazine ‘On the Menu’ and ‘Sainsbury’s Technical Excellence Award’ and Female representation on the Greencore our staff intranet ‘On the Menu online’. Group plc board is 20%, further details are ‘Tesco Values Awards’. set out on page 34. Female representation A Fun Place to Work We also continue to work with customers on our subsidiary company boards is Whilst maintaining a professional approach to to help drive and deliver their sustainability currently at 19%. The senior management our work, Greencore does also encourage its strategies, including supporting nutrition of the business is composed of the Group colleagues to have fun and enjoy their work. improvements to extend the portfolio of Executive Board (“GEB”), details of which At many of Greencore’s sites this is centred healthy products available to consumers are set out on page 22. Since the departure on charity fundraising. of Di Walker, this is now composed of two and meeting both our customers’ and Greencore’s environmental and ethical criteria Executive Directors and five other senior A number of Greencore’s UK facilities throughout our operations and supply chains. managers. Whilst the Board is satisfied that celebrated ‘Red Nose Day’ in March and in the GEB has the appropriate balance of doing so raised much-needed funds for Comic An Industry Leader in Food Safety skills, experience and expertise necessary Relief. Greencore teams across the UK and in Standards and Supply Chain to fulfil its role, should there be further Chicago participated in October’s ‘Wear it Effectiveness compositional changes, the Board will Pink’ day in aid of Breast Cancer Support. give due regard to diversity. Food safety is an absolute priority for Greencore and we maintain the highest We celebrate our food culture through our standards throughout our operations. We have unique Food First programme which involves a strong set of key performance indicators, the whole workforce joining in with fun, and which measure our food safety performance occasionally novel, events. In May, colleagues on a daily, weekly and monthly basis as well from Greencore Food to Go participated in the as setting technical strategies that respond British Sandwich Association’s world record to internal performance and external factors. attempt at the most people making sandwiches at the same time. This was achieved with more Our facilities undergo multiple audits to ensure than 600 colleagues from across the industry we meet specific standards on food safety and participating. hygiene. This year, 81 internal inspections by Greencore technical personnel, including health Greencore staff also get together to enjoy social checks and unannounced audits, were carried clubs and sporting events – a group of colleagues out. These were accompanied by 167 formal at Greencore’s facility in Wisbech have set up audits by external bodies against retailer and their own local football club, Greencore FC. accredited standards of quality and safety. Engagement is encouraged through regular We have always maintained robust procedures employee surveys giving colleagues the to ensure traceability and authenticity within opportunity to comment on all aspects our supply chains and we continue to challenge of life at Greencore. and improve these through our internal testing processes and our dedicated supply chain audit team. Greencore Group plc Corporate Responsibility Report 2013 5

Our specialist team of auditors has conducted Institute of Grocery Distribution (IGD) and Food 214 physical audits of companies supplying our Standards Agency Scotland. We continue to business throughout FY13. engage with the Department of Health in the UK on the Public Health Responsibility Deal and Known for Innovative and the review of salt targets scheduled for 2013-14. Great Tasting Food Products Our core principle of Great & Safe Food is Health awareness is part of a calendar of site widely recognised by both our colleagues activities, aiming to encourage our workforce and customers as a platform for competitive to maintain a healthy lifestyle. advantage by demonstrating a genuine love and passion for great food. At Greencore Suppliers we employ high calibre food development Learning & Development Manager, Richard Everitt ‘Operating Effective and professionals who drive this food agenda. presenting the Kiveton site learning and development Transparent Supply Chains’ notice boards. We make significant investments in By the very nature of the typically short uncovering and understanding new food shelf-life food categories in which we operate, trends and developments, through market Greencore sites within the UK undergo internal it is critical for Greencore to work closely with data, consumer research and market visits. ethical audits in addition to those conducted its suppliers to have effective and transparent by our customer and independent 3rd party supply chains. Our goals for suppliers are: All of this expertise and knowledge forms auditors against the SEDEX Members Ethical –– to be a business that sets clear standards the basis of our product and packaging Audit (SMETA). for its suppliers development activities. 43% of all of the –– to be a business with deep supplier products manufactured by Greencore across Our customers expect high standards of insight and supply chain capability the UK and US in the last 12 months are new animal welfare for their products. All raw beef –– to be a business that partners with its to the market. However, the focus on great used within our prepared meals is produced suppliers for responsible sourcing of key and safe food doesn’t stop with our product from UK origin farm assured cattle. materials development teams – every employee within Greencore is encouraged to demonstrate and Responsible sourcing of raw materials is share a passion for great and safe food. A Business that sets Clear important to Greencore and to our customers. Standards for its Suppliers We use Marine Stewardship Council (MSC) Greencore has a central technical and Products manufactured by Greencore are certified Pollock in our products and 95% of purchasing function that works with our regularly shortlisted and winners at key the tuna in our sandwiches is pole and line suppliers to ensure that our requirements industry product awards. Last year 11 products caught. 86% of the cold water prawns we use and standards are met. All of our suppliers were shortlisted at The Grocer Own Label Food are sustainably sourced. undergo regular auditing processes, either by & Drink Awards and seven products have our dedicated in-house supplier auditing team made The Quality Food & Drink awards or via approved third party supplier auditors. shortlist. Greencore has also won awards at The Sandwich Industry Awards as well as In addition to the auditing and approval the British Frozen Food Federation Awards. processes described above, each ingredient supplier has its own specification, which sets Health and nutrition are a particular focus for out the required quality and safety standards. Greencore and our customers. We signed the UK government’s Public Health Responsibility Deal commitments on salt reduction and A Business with deep Supplier removal of artificial trans fats in 2011. Insight and Supply Chain Capability Greencore operates to the highest customer service levels of 99+% for the vast majority of We have met the 2012 salt reduction targets its products. These standards can be difficult for products across the majority of categories to achieve within most product areas, but in which we operate, including sandwiches, due to the capabilities of our purchasing and prepared meals, soups, cakes, tomato ketchup, supply chain teams we are able to achieve pasta sauces, pastes and puddings. For the these levels in traditionally challenging short small number of products that do not meet shelf-life product categories. the targets, our technologists continue to work towards them, where food safety and quality allow. A Business that Partners with Suppliers for Responsible Sourcing We met the commitment to remove artificial of Key Materials We set ethical standards within our business trans fats from products at an early stage. and aim to ensure fair working practices Partially hydrogenated vegetable oil is throughout our supply chains. not used as an ingredient in our products. Furthermore, oils and fats containing trans As a member of SEDEX, Greencore encourages fats are not used in their preparation. suppliers to its UK business to register with the organisation. The majority of the top 100 Our development teams are supported by our suppliers to our UK sites are SEDEX members company nutritionist and recently appointed and we are working across our broader supply Group Sustainability Manager, who are in base to encourage membership. contact with external bodies including, in the UK, the Department of Health, Public Health England, the Platform on Public Health, the Chilled Food Association (CFA), Greencore Group plc Corporate Responsibility Report 2013

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Corporate Social Responsibility Report (continued)

Global GHG emissions data for period 1 October 2012 to 30 September 2013 A Leader in Material Kg of CO2e Usage and Sustainability Current We aim to use our raw materials as efficiently reporting Comparison as possible within our processes and to reduce year year1 FY13 FY12 waste of all types. Emissions from: Our priority for waste management continues Combustion of fuel and operation of facilities (Scope 1) 85,067 84,583 to be in line with the waste hierarchy, as we Electricity, heat, steam and cooling purchased for own use (Scope 2) 65,618 75,369 strive to eliminate waste at source, minimise Total emissions (Scope 1 & 2) 150,685 159,952 where practical, and then look to reduce the Intensity measurement (Kg CO2e per £1 sales revenue) 0.126 0.137 environmental impact of unavoidable waste through better recycling and recovery.

We are working with our suppliers to transition In the last year we have delivered an overall We continue to support the Courtauld all of the palm oil ingredients we use in our 1.3% total energy reduction and 1.7% Commitment, and undertook a successful products to the Round Table on Sustainable reduction in energy per tonne of product2. WRAP supported waste prevention exercise Palm Oil (RSPO) standard. Our bakery at at our Food to Go facility in Worksop. As a Kiveton is RSPO certified for the use of Details of our carbon footprint are shown above. result the site was highly commended in segregated palm oil in its quiches. Across our This is produced following the guidelines and the sustainability category at the ‘Made in other sites we support the Book and Claim principles of the WBCSD/WRI Greenhouse Gas Midlands’ awards 2013. We are now looking model operated by GreenPalm and have Protocol, and covers our scope 1 emissions to roll out the benefits from this project across recently undergone an independent audit to (fossil fuels, transport fuel & refrigerant losses) the Group through incorporating some of demonstrate our compliance with this system. and scope 2 (electricity), using emission factors the key learning into our Lean Environment from UK Government’s GHG Conversion Factors programme. Environment for Company Reporting. The footprint includes all Greencore operating companies for FY13. During the last financial year we have made a ‘Respecting our Environment’ significant change to our waste management Greencore believes it makes sense, both We have reported on all of the emission services by directly employing a full time Group economically and ethically, to seek ways to sources required under the UK Companies Act Waste Manager and administrative support. reduce the effect of our operations and our 2006 (Strategic Report and Directors Reports) This has helped to further drive improvements business on the Environment. Our goals for Regulations 2013. in managing our unavoidable waste. During the Environment are: FY13, we achieved our aim of sending zero –– to be an efficient user of resources We have continued to focus on reducing waste directly to landfill, and delivered a year –– to be a leader in material usage and water usage. Our total water consumption on year reduction in total waste of 3.2%, and sustainability has remained broadly flat, as has consumption waste per tonne of product of 3.4%. –– to be an influencer in reducing consumer (m3) per tonne of product at 6.78 compared food waste right the way across the food to 6.73 in the previous financial year. This Year on chain year is against an overall reduction in water 2011/12 2012/13 change2 consumption per tonne of product of 25% Tonnes of waste An Efficient User of Resources in the previous five years. In 2013 we again responded to the Carbon per tonne of product 0.153 0.148 -3.4% Disclosure Project Climate Change Programme In addition to reducing water consumption, and continue to work on improving our carbon we aim to minimise effluent production at reporting and reducing our carbon footprint. source. We have also improved the quality of An Influencer in Reducing For the first time this year we have also discharge through investment in an upgrade Consumer Food Waste Right responded to the Carbon Disclosure Project to our effluent plant at Greencore Grocery in the Way Across the Food Chain Forests Programme. Hull and a new treatment plant at Greencore Greencore continues to engage in the broader Food to Go in Bow. aspects of food supply chain sustainability, In FY13 a number of energy and carbon through chairing the Chilled Food Association reduction projects were completed across our Greencore Prepared Meals Kiveton received Sustainability Working Group, active business, including investments in inverters, a highly commended in the Sustainable involvement in the IGD Industry Sustainability compressed air improvements, energy efficient Resources category at the inaugural Yorkshire Group and active engagement with a number lighting, refrigeration upgrades, including the Water Taking Responsibility for Business of customer sustainability and environmental use of ‘free cooling’ in colder weather to reduce Awards 2013. working groups and forums. refrigeration system energy consumption.

1 Note – the FY12 data has been re-calculated with the new emission factors for individual years produced by the UK Government, replacing the previous five year grid rolling average factors. 2 Note – Based on the 15 UK manufacturing sites (out of a total of 16) owned and operated by Greencore in each of the last two financial years. Greencore Group plc Corporate Responsibility Report 2013 7

We work closely with our customers to continue to develop and improve packaging formats, which reduce the environmental impact of the packaging itself, but also helps to reduce food wastage for the consumer.

In January, Greencore Food to Go Northampton became one of the first suppliers to be validated to the silver level of the M&S Plan A supplier framework. Communities ‘Making a Positive Impact’ Greencore is aware of its responsibility to ensure that it makes a positive impact on the communities in which it operates. Our goals for Communities are: Group Environmental Advisor, Norman Watson, with Mick McKernon and Paul Sharp of Greencore Food to Go. –– to be a good neighbour –– to be a champion for the food industry –– to be a company with charitable giving In the past 12 months, Greencore has played A Company With Charitable as part of its culture an active role in the CFA led ‘Chilled Education’ Giving as Part of its Culture initiative with the objective of raising interest Greencore supports a number of charities, A Good Neighbour in schools and colleges of the technical careers both from a Group perspective and through Greencore aims to be a good neighbour by available in the food industry. We have local site initiatives. Greencore is a long- active engagement in the communities serving contributed support materials and provided standing supporter of the industry charity its facilities and employees. We are committed STEM (Science, Technology Engineering and GroceryAid and was the proud recipient of to establishing and maintaining good Maths) ambassadors to visit schools. We have a Silver Achievement Award for its product community relationships, both in the role of also invited school teachers to our facility in donations, participation in fundraising events employer and also in terms of any impact our Northampton to showcase what our industry and committee work – all for the benefit of operations may have on local communities. In has to offer young people. former industry workers that have fallen on this regard Greencore aims to respond rapidly hard times. to resolve any nuisance complaints which may Together with our peers across the industry, arise from its operations. Greencore has for the second consecutive year Greencore also supports FareShare in the played a leading role in the Feeding Britain’s UK and Feeding America in the US. Both Several Greencore sites have company Future initiative in the UK. We invited young organisations redistribute surplus food representatives who participate in local unemployed people to our facilities in order to products to those in need through a community meetings as the ‘eyes and ears’ on give them an insight into what a career in the variety of different channels. the ground, able to identify quickly emerging industry has to offer. The young people were issues or concerns. Greencore’s Newburyport also given basic skills training with the aim At a local level, Greencore sites support facility in the US is also a member of the local of improving their employability prospects. a wide range of organisations, including Chamber of Commerce and Industrial Park In October 2013, Greencore was recognised Comic Relief, Jeans for Genes, Great Ormond Board. with the IGD President’s Cup for the role it Street Hospital, The Disability Games, Acorn has played in supporting the IGD and Feeding and Breast Cancer Research in the UK and Greencore engages with schools and other Britain’s Future. charities such as Poverty Aid and Food Banks local institutions in community projects. in the US. For example in Selby in the UK, Greencore In addition to these activities Greencore has supported a project led by the local police force sponsored places for young people run by Greencore also supports individual colleagues in which school children painted a decorative the Food Science Summer Schools at the in their various fundraising activities. Our mural on a disused wall close to our facility. Universities of Nottingham and Leeds. We Group Technical Director, Helen Sisson took support the charity Young Enterprise with part in a Farm Africa-led project in Kenya to A Champion for the Food Industry its development activities within schools dig a fish pond providing a source of food and As a major employer within our industry, and colleges. income for the local community; Managing Greencore has a responsibility to champion the Director of our Food to Go Convenience food industry. We do this in a number of ways, business, Steve Evans, cycled from Paris to including participating in and taking leading London as part of a Marks & Spencer initiative roles in industry-wide projects, organised by to raise funds for a number of cancer charities; leading trade organisations and charities such Group CSO, Eoin Tonge, participated in the as the Chilled Foods Association (CFA) and the Dublin Marathon for the second year running Institute of Grocery Distribution (IGD). to raise funds for childrens’ orthopaedic surgery in a local hospital. These are just three examples of the many individual fundraising activities by our colleagues across the UK, Ireland and the US. Greencore Group plc Corporate Responsibility Report 2013

Business Excellence We strive to be best in class.

We aim to be a business which drives growth and performance with our customers. A business which operates as a Lean enterprise across the supply chain and a business which manages resources in a disciplined manner consistent with our strategy.

Greencore Group plc Corporate Responsibility Report 2013

Cost Effectiveness We have a cost culture aligned to our business model.

We aim to be a business with clear identifiable cost initiatives, a culture which challenges the status quo and a business where everyone treats resources as if they were their own.

Greencore Group plc Corporate Responsibility Report 2013 Great and Safe Food Keeping the passion for food central to our culture.

We aim to have a culture centred around great tasting food, to be known externally to have real food credentials as a business and continuously driving food technologies. Greencore Group plc Corporate Responsibility Report 2013

People At The Core Making Greencore a great place to work.

We aim to live our company values, be a healthy and safe place to work and a place to develop your career. We want to be a place where everyone’s contribution is recognised and to be a fun place to work.

Greencore Group plc

Annual Report and Accounts 2013 Accounts and Report Annual

Greencore Group plc No. 2 Northwood Avenue Northwood Business Park Santry Dublin 9

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