OUR COMMITMENTS TO YOU AND TO FUTURE GENERATIONS ANNUAL REPORT 2018
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CONTENT
Letter from the Chairman and CEO ...... 04 Introduction ...... 05 Health & Well-Being ...... 15 Responsible Sourcing ...... 19 Planet ...... 31 Heritage ...... 37 People ...... 43 Communities ...... 51
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LETTER FROM THE CHAIRMAN AND CEO
Sustainable entrepreneurship has been high on the agenda of the Puratos Group and it runs as a red thread through our operations. We aim to embed our social responsibilities into our entire value chain, going from the sourcing of raw materials up to the use of our products by customers and consumers.
We are conscious about the numerous challenges our society is facing. That is why we encourage all initiatives and actions which help us to become a more sustainable company so we can transform these challenges into opportunities. We actively want to play a role in resolving issues related to health and well-being, responsible sourcing and the environment, for our employees, customers and suppliers.
As shown in this report, Puratos is committed to being a socially responsible company and a reliable partner for all its stakeholders. Thanks to the model of our vision, we are convinced that more and more consumers are attaching importance to the sustainable impact of their food.
Our corporate social responsibilities (CSR) commitments, which we call our commitment to you and the next generations, are set out in six connected and inter-dependent chapters: health and well-being, responsible sourcing, planet, heritage, people and communities. The decision to work on these six pillars is based on the interactions over time with our customers, suppliers and other stakeholders. Every year we gain more and more experience and clear objectives have been set for the future, such as becoming carbon neutral by 2025 and water-balanced by 2030. Other areas are yet to be defined but are constantly evolving, supported by dynamic and motivated teams.
Every Puratos employee is an integral part of this approach, in the 71 countries in which we are present with a subsidiary, in each department of our organisation, irrespective of the level of responsibility. Each of us plays a role in the pursuit of this CSR approach, for the benefit of the environment and our planet, to improve the nature of our products through supply, composition and heritage, and for the benefit of us all – employees and communities in which we work. Together we make this “Puratos Magic” work for the benefit of all.
Eddy Van Belle Daniel Malcorps Chairman of the Board of Directors CEO Puratos Group Puratos Group
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INTRODUCTION
Our Sustainability Strategy For nearly 100 years, and as a family company, Puratos has always valued ethics and the well-being of its personnel and customers. These historical principles are reflected in our commitment to the next generation.
In order to transform our world by 2030, companies are constantly reminded that they should balance all their objectives between the five pillars of sustainability:
People: we are committed to creating a safe and respectful environment in which every one of our stakeholders feels valued;
Planet: we want to reduce our carbon and waste footprint and have a positive impact on the whole ecosystem;
Prosperity: we want to contribute to the prosperity of our society by building a sustainable and prosperous future;
Peace: with our positive view on society and values such as ethics and courage, we want to create a meaningful difference;
Source: Twitter account UN Sustainable Development Partnerships: we choose to work with reliable partners that will help us to achieve our sustainable goals and objectives.
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Based on these principles, Puratos committed itself to six sustainable pillars: Health and Well-Being, Responsible Sourcing, Planet, Heritage, People and Communities. Below you can find our sustainability framework, which outlines these six pillars, as well as the following elements:
Our stakeholders: they are very important to our organisation. Therefore we have included them in the centre of our framework. Our 6 sustainable pillars. How our 17 material topics are linked to our 6 sustainability pillars. How our flagship projects are linked to our 6 sustainability pillars.
Long freshness of bread 4 Carbon neutrality Water management Food waste Bakery Schools Non-food waste 3 Sustainable raw materials Fruit supply Chunca plantation Ethical suppliers Planet Cacao-Trace™ Chocolate Bonus 2 Responsible sourcing Education Farmers livelihood 1 Job oportunities Our stakeholders
Communities Employees Communities & societies Customers & consumers Employee health & safety Suppliers Business ethicsEmployee and culture learning & People Shareholders & investors Government development Creditors Health & Well-Being Heritage Puratos Magic Family Food quality & safety Sensobus & Nutritional value of food development Taste Tomorrow Healthy diet awareness Puratos University Traceability / Clean(er) food Preservation of Sustainable innovationKey & product principles for bakery culture Health and Well-Being
Chocolate Museum
Sourdough Library
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The Puratos Group has a strong commitment towards the next generation in our daily business, which is reflected in our objectives and performances.
HEALTH & WELL-BEING
Our performance in 2018: Our main objectives: • We used 14.777 tonnes of fruit • Further decrease sugar, salt and saturated fat; (+15% compared to 2017); • Increase fibre-rich grains, nuts, seeds and fruits; • We used 35.378 tonnes of cereals and grains • Offer alternative clean(er) label, organic, gluten- (+8,5% versus 2017); free, plant-based solutions. • We removed 7.152 tonnes of fat which equals 7.152.000 bottles of oil (+15% compared to 2017); • We removed 372 tonnes of salt which equals 25 x 15 tonne truck loads (+7% compared to 2017).
RESPONSIBLE SOURCING
Our performance in 2018: Our main objectives: • 26,3% of our purchased cocoa was sourced in • Favour raw materials, packaging, equipment a sustainable way (+3,48% vs 2017) of which and services that are environmentally friendly, 10,58% was through our audited Cacao-Trace™ benefit society, and give value for money over programme (+2,19% vs 2017). their lifecycle; • Favour suppliers who share our vision of sustainability and who work towards maintaining a more sustainable supply chain.
PLANET
Our performance in 2018: Our main objectives:
• Net emissions 99.000 tCO2 equivalent in 2018 • 2025 – make our direct operations carbon
» 14% net CO2 reduction in 2018 compared to neutral;
previous year (15.000 tCO2e less than 2017); • 2030 – have a balanced and sustainable water » Used 50% renewable electricity in 2018 (saving management by reducing our own water
21.000 tCO2e compared to business as usual); consumption and improving the quality of our » Our energy efficiency has improved by 8% since water discharge.
2012 (saving 10.000 tCO2e per year). • Water usage 1.8 billion litres (8% as ingredient) » Water efficiency improved by 2% since 2012 (saving 42 million litres of water per year); » +6% water used safely recuperated (10 million litres saved). • Waste reduction » 6.630 trees, 9.75 million litres of water and 1.1 million litres of oil saved by improving our bags used to pack powder products.
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HERITAGE
Our performance in 2018: Our main objectives: • 115 sourdoughs of 20 countries are stored in our • Through our sourdough library we want to physical library in St. Vith; preserve the traditional way of making bread. • 1.441 sourdoughs from 1.187 cities are registered Sourdough gives a unique taste to bread that is in our digital library since September 2016. different all around the world. We see it as our responsibility to keep this tradition alive.
PEOPLE
Our performance in 2018: Our main objectives: • We organised 2.936 training days worldwide for • Make every employee feel part of the Puratos our business development community (+33% Magic Family. compared to 2017); • Between 2011 and 2018, both the number of accidents and the number of days lost declined by 40%; • Our staff represents 97 nationalities in 71 countries.
COMMUNITIES
Our performance in 2018: Our main objectives: • 19 students graduated in India and 21 in Brazil, all • Find job placements for all graduates of the were recruited by Puratos or one of its customers; Bakery School Foundation; • We paid a total Bonus of €288.000 to our Cacao- • Open 1 new bakery school every year; Trace™ farmers (+62% compared to 2017). • Increase the total Chocolate Bonus (0.10 €/kg) reallocated to farmers annually.
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At Puratos we see sustainability as the answer to transform growing economic, environmental, social and cultural challenges into opportunities. Sustainability aspects are incorporated in our business and decision- making processes; it is a way of being and a way of working. It is part of our Puratos Magic and is integrally embedded into our corporate strategy.
As a food company we focus on improving our product quality in terms of health and safety whilst minimising our environmental and social footprint by preventing food and non-food waste, dealing responsibly with people and resources, and becoming carbon neutral; in other words by creating a positive impact for society.
To implement this ambitious strategy, we involve our suppliers. We updated our supplier code of conduct, an ethical guideline for all our suppliers and involved our employees by creating awareness and giving sustainable tips that they can also apply in their daily lives.
Our objective is that everyone we work with, suppliers, customers and employees, recognize the importance of sustainability not only in their work environment but also for them personally. The more than 9.000 employees of Puratos can help to achieve our ambitious goals. Below you can see how we embed sustainability in our business.
Set up clear sustainability Guidelines guidelines and procedures. Embed Inform all employees about sustainability Create different sustainability topics into business awareness by offering training sessions. and decision making processes. Way of being/ Incorporate sustainability acting in work and daily life.
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Puratos and the SDGs In 2015, the United Nations agreed on a global agenda for 2030. This consists of 17 Sustainable Development Goals and 169 underlying targets with the aim to protect the planet, eradicate poverty and guarantee prosperity and well-being for all.
Puratos fully supports the 17 Sustainable Development Goals set by the United Nations. We have mapped them with our sustainability pillars and aim to contribute positively to them. We want to inform about the goals and create awareness amongst our employees, suppliers and customers, … so that everyone forming part of our supply chain can contribute to the realisation of the SDGs.
With 2030 approaching, the SDGs will become more and more important. We will need to combine forces, locally and globally, to achieve these 17 goals. Every country, every company, every individual is part of this common quest and should include the SDGs in their decision-making processes.
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• Through the creation of our Bakery Schools we ensure job security for underprivileged youngsters to help them provide for their families; • With Cacao-Trace™ we brought to life an integrated sustainable cocoa programme. A package of initiatives (including education, training, fair and premium pricing) is aimed at creating a better life for farmers.
• By involving consumers and convincing them to pay a fair price for a better product, we share this advantage with our communities of Cacao-Trace™ farmers by paying a quality premium as well as a totally unique Chocolate Bonus: for every kilo of Cacao-Trace™ chocolate sold, €0.10 is paid directly to the farmers with whom we work; • By offering training to our cocoa farmers, they are able to increase their yield, and as a result, also their revenue; • By storing 115 sourdoughs of 20 countries, we contribute to the preservation of bread culture.
• With Puratos University (founded in 2006), Puratos provides to its employees training courses on products (baking, patisserie, chocolate), functional capacities and leadership skills; • By offering technical training, locally and globally, in one of our 81 Innovation Centres, we provide to our customers expertise as well as in-depth research into international trends; • By educating and training our cocoa farmers on fermentation techniques, they can provide better quality cocoa which they can sell at a higher price; • Thanks to our Bakery Schools in India, Brazil, Mexico and South Africa, our students enjoy quality education that leads to job opportunities.
• Thanks to our new wastewater treatment flow in Russia, we are able to ensure water discharge is safely returned; • By identifying and preparing for our top 20 sites a five-year plan, we aim to improve water efficiency by 25% compared to 2016 and to be water balanced by 2030.
• Thanks to a new contract to cover the factory roof of Puratos China, with solar panels, 25% of the site’s electricity use will be renewable; • By sourcing green electricity from the grid, 50% of Puratos’ electricity used in 2018, came from renewable energy.
• By paying all employees at Puratos (regardless of their age, nationality or gender) fairly and competitively, we contribute to a decent work environment; • By offering job security to all students that graduate from our Bakery Schools, 47 students were employed by Puratos or one of our clients in 2018; • By asking our suppliers to sign our code of conduct, we want to ensure the same levels of ethical requirements are maintained throughout our supply and production chains, and to eradicate any form of forced labour.
• By informing our clients on our products, they can make healthy food choices; • By sourcing palm oil, cocoa and fruit in a sustainable way we contribute to an efficient use of natural resources; • By training our cocoa farmers on fermentation techniques, we help them to decrease their post-harvest losses; • By putting in place a waste management programme, we aim to prevent, reduce, reuse and recycle our waste.
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Materiality assessment To identify the issues that matter most to our business and our stakeholders, and to better support our reporting and strategic decision-making, potential social, ethical, environmental and economic concerns were identified and evaluated to determine associated risks and opportunities for Puratos’ reputation, revenues and costs.
The material issues for Puratos were selected in a process that consisted of several steps. In the first step a list of non-financial issues, relevant to our company and our stakeholder groups, was generated, by studying and analysing the wider context of Puratos’ operations . This way, 17 topics were selected that formed the basis for the materiality assessment. These are topics that can affect consumers, customers, colleagues, communities, investors or other stakeholders in the countries where we operate and source.
In a next step, the level of priority of these topics was assessed in two dimensions:
• Internal management and external stakeholders were asked to score the relative relevance of these 17 topics (‘materiality’). To do so, external stakeholders were asked to fill out a questionnaire. The respondents represented the 9 stakeholder groups: communities and societies, creditors, customers, employees, government, labour unions/social relations, shareholders and investors, suppliers and universities. • Internal management was asked to assess Puratos’ performance for every topic.
This assessment resulted in two scores, materiality and maturity, which were plotted in the next step, in a so-called urgency matrix, as can be seen on page 13. The topics that are positioned towards the top left corner from the diagonal are the topics that are deemed urgent. This means that these topics are regarded as significant (material) but are not yet adequately managed (mature) by the organisation and could therefore represent a potential risk in the future. From the left side, the more you go towards the diagonal or even below, the better Puratos is positioned regarding the topic.
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The seventeen topics are positioned on a scale from moderately material to highly material, as can be seen on the y-axis of the urgency matrix. The topics identified as highly material are:
• Food quality and safety; • Employee health and safety; • Sustainable innovation and development; • Nutritional value of food; • Community partnership.
The topics that are most urgent according to the urgency matrix, are the following:
• Healthy diet awareness; • Sustainable raw materials; • Food waste; • Fair and transparent labelling; • Ethical suppliers.
We concluded that all these topics are part of our sustainability approach and we are permanently working on them.
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HEALTH AND WELL-BEING
Consumers are increasingly aware of the impacts of food production on the planet and on human health. Health and well-being is therefore a significant challenge for the global food industry, and like every challenge it offers opportunities for innovation. The quest for health and well-being has always been at the heart of our research and development activities.
Key performance indicators 2018: • We used 14.777 tonnes of fruit (+15% compared to 2017). • We used 35.378 tonnes of cereals and grains (+8.5% versus 2017). • We removed 7.152 tonnes of fat which equals 7.152.000 bottles of oil (+15% compared to 2017). • We removed 372 tonnes of salt which equals 25 x 15-tonne truck loads (+7% compared to 2017).
Our long-term objectives: • Further decrease sugar, sodium and saturated fat. • Increase the intake of fibre-rich grains, nuts, seeds and fruits. • Offer alternative clean(er) label, organic, gluten-free, plant-based solutions.
With the aim to systematically optimize the nutritional values of new and existing products, we increased the availability of ingredients recognized for their positive impact on health (such as fruits, fibres and wholegrains) and decreased the presence of ingredients such as salt, certain fats and sugars.
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1. Health and Well-Being Approach
Puratos’ Health & Well-Being approach consists The Health related topics are scientifically proven of 9 building blocks. to be better for your health, whereas the Well- Being topics are linked to a consumer perception that they are better for you.
Health Well-Being (science based) (consumer perception)
More Less Clean(er) Label Organic Salt Grains & Seeds Fat Fruits Sugar Gluten-free Plant-based
2. Key principles for the development of our products.
To support our worldwide Research & Development teams in their continuous pursuit of excellence, we published our nutritional guidelines, which act as a global framework for product innovations or reformulations. Based on the nutritional guidelines of the World Health Organization (WHO), they are the result of in-depth collaboration and represent the standard used by all Puratos researchers when developing new products or renovating existing ones.
2.1 The Health Focus
It is now well-known that healthy eating is as much about stripping away the unnecessary and ‘bad things’ as it is about adding more ‘good stuff’.
In accordance with both consumer needs and established international organizations’ guidelines and without compromising on taste and texture, we are working on:
• Increasing the availability of nutrients and ingredients recognized for their positive impact on health, such as fibres and wholegrains; • Decreasing the presence of nutrients and ingredients recognized for their negative impact on health, such as salt, certain fats and sugars.
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Grains & Seeds Guidelines Increase the quantity of grains and seeds in our products and promote the use of wholegrain versions to stimulate the consumption of bakery products containing high levels of grains, wholegrains and seeds.
Fruits Guidelines Increase whenever possible the fruit content in fillings or the fruit filling content in the final application (finished good).
Salt Guidelines Reduce the quantity of salt as much as possible to help the final consumer to adhere to the 5 g of salt per day as recommended by the World Health Organization.
Fat Guidelines Remove or reduce fats, especially of low nutritional quality (i.e. fats rich in saturated fatty acids) or replace them with fats of good nutritional quality (i.e. fats rich in unsaturated fatty acids). Remove trans fatty acids (TFA) and replace them with healthier fat sources.
Sugar Guidelines Rework existing recipes (especially fillings, patisserie mixes etc.) with the aim to reduce the sugar content by a minimum of 3% without compromising overall product quality. Whenever possible, sugar reduction/removal must not be compensated by the increase or the addition of ingredients such as polyols or fats that lower the overall quality of the products.
2.2 The Well-Being Focus
In addition, we are developing a more holistic approach and are also beginning to develop solutions that, even though not scientifically and directly linked to better health, are often viewed as a contributor to the consumers’ well-being.
Clean(er) Label Guidelines Apply a Clean(er) Label approach in which every ingredient has its reason to be in the formulation and refor- mulation project.
Gluten-Free Guidelines Provide, whenever possible, nutritionally balanced gluten-free alternatives with a taste and texture as close as possible to the reference.
Organic Guidelines Provide, whenever possible, an organic alternative without compromising on taste and texture and overall functionality.
Plant-based Guidelines Provide, whenever possible, a plant-based alternative with taste, texture and functionality as close as possible to the traditional counterpart.
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RESPONSIBLE SOURCING
To manufacture high-quality food products we must have uninterrupted access to many different ingredients from around the world. At the same time, we realise that the demand for basic ingredients such as cocoa and sugar can put huge pressure on natural ecosystems and affect the sustainable development of local communities. This is why we are committed to responsible sourcing.
At Puratos we know that responsible sourcing is key to ethical trading and that consumers are right to be concerned about where their food comes from, how it is produced, and the way in which it is sourced. We make sure that we collaborate and keep an open dialogue with the people involved in our supply chain.
Key performance indicators 2018: • 26,3% of our purchased cocoa was sourced in a sustainable way (+3,48% vs 2017) of which 10,58% was through our audited Cacao-Trace™ programme (+2,19% vs 2017).
Our long-term objectives: • Favour raw materials, packaging, equipment and services that are environmentally friendly, benefit society, and give value for money over their lifecycle. • Favour suppliers who share our vision of sustainability and who work towards maintaining a more sustainable supply chain.
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1. Our commitment to ethical trade practices
We have updated our Ethical Trade Charter in order to develop sustainable and ethical value chains.
We ask our suppliers to sign this charter or to share theirs with us. It is vital for us to have the same level of ethical requirements maintained throughout our supply and production chains, and we make sure that they are constantly improved.
We present this Ethical Trade Charter to our customers upon request to ensure full transparency. It represents our moral commitments to the different players throughout our value chain.
Ethical Trade Charter Puratos and its suppliers commit in particular to:
• Providing good working conditions (contracts, health and safety, equal opportunities); • Opposing slavery, all forms of forced labour and all other forms of abuse and exploitation; • Maintaining an open dialogue with the local authorities, in particular those in charge of environmental conservation.
In December 2018, Puratos became a member of Beyond Chocolate, a partnership that aims for sustainable Belgian chocolate. With Beyond Chocolate, all signatories commit themselves to working together on a whole range of challenges in the field of sustainable chocolate, such as tackling deforestation, child labour and a liveable income for local cocoa producers. In concrete terms, this means that all Belgian chocolate produced or Bey nd traded in Belgium meets a relevant certification standard or is produced with cocoa products from Chocolate company-specific sustainability programmes by Partnership for sustainable Belgian Chocolate the end of 2025 at the latest.
This is a first good step towards a sustainable cocoa supply chain and Puratos Belcolade is committed to the 100% by 2025 under the proposed criteria. However we already want to take the next step with our objective (which is much more strict) under the Cacao-Trace™ definition where we aim at 50%.
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2. Palm Oil
We are committed to the gradual and continuous oil by other vegetable oil crops will require more improvement of our supply sources. Palm oil is land, potentially leading to more deforestation and an essential raw material owing to its technical biodiversity losses. properties, enabling us to supply our customers and consumers with the quality products they expect. Palm oil, has the natural advantage to provide enough body and structure to for instance In an ever more affluent world, where the margarine so that we can avoid using hydrogenated population is forecast to grow to 10 billion in 2050, fats. and with more regions gaining access to prepared foods, an increasing demand for vegetable oil is Since 2010, Puratos is member of RSPO (Roundtable obvious. How can the Earth meet this growing for Sustainable Palm Oil), which is the most broadly demand for affordable vegetable oil? recognised palm oil certification system. In 2012 Puratos became a founding member of BASP Palm oil achieves a yield per surface area 5-10 (Belgian Alliance for Sustainable Palm Oil). times higher than other crops. Replacing palm
The Principles and Criteria of RSPO have evolved over the years and are built upon 3 pillars:
Environment • A policy of no deforestation; • Enhancement of High Conservation Values (HCV) and High Carbon Stock (HCS) forests; • Conservation of peatlands; • Safeguard biodiversity and wildlife: • Fire prevention.
Social • Respect workers’ rights and conditions; • Provide education and health services to rural communities; • Support smallholder inclusion; • Respect local communities and human rights.
Ethical • Behave ethically and transparently; • Operate legally and respect rights; • Traceability to the trees.
Puratos is collaborating with its suppliers, its customers and other stakeholders to drive forward sustainable palm oil and will continue this process.
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3. Cacao-Trace™: our commitment to sustainable cocoa
Cacao-Trace™ is the sustainable cocoa supply programme of Puratos. Whereas the chocolate industry tends to stress quantitative results more, our programme is interested essentially in quality, by creating value for all by improving the flavour/taste.
Expertise in fermentation at post-harvesting stations situated in cocoa producing countries throughout the world is the secret of our chocolate with its unrivalled taste so highly appreciated by chocolate connoisseurs. It is also a source of additional income for cocoa farmers.
By involving consumers and convincing them to pay a higher price for a better product, we share this advantage with our communities of Cacao-Trace™ farmers by paying a quality premium as well as a totally unique Chocolate Bonus: for every kilo of Cacao-Trace™ chocolate sold, €0,10 is paid directly to the farmers with whom we work.
We apply complete transparency: €0,10 collected = €0,10 distributed.
It is only by creating more value thanks to an improved taste and by sharing this added value with our Cacao-Trace™ farmers that we will be able to improve the means of subsistence for cocoa farmers and create a sustainable future for the industry.
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How Puratos stands out Cacao-Trace™ chocolate is prepared rigorously from a Cacao-Trace™ cocoa paste originating from beans that have been fermented and dried according to strict instructions.
Sustainable living income for Cacao-Trace™ farmers around the world
IMPACT ON FARMERS
Additional income Better price Yield increase Additional revenues paid 100% for better taste to the farmers
OBJECTIVES
Secure cocoa Diversification of the Superior Taste & 100% of the premium bean supply farmer’s production consistent quality paid to farmers
PURATOS ACTIONS
Agroforestry & Post-harvesting centres Farmer training Chocolate Bonus crop diversification (fermentation & drying)
Typical industry practice Unique Puratos Approach
We are currently deploying the Cacao-Trace™ initiative in Vietnam (2013), Ivory Coast (2015), the Philippines (2017), Mexico (2018) and Papua New Guinea (2018).
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Cacao-Trace™ in Vietnam
Puratos Grand-Place Vietnam has been involved in the Cacao-Trace™ programme since 2014, by running a cocoa post-harvest centre at Ben Tre, in the Mekong Delta, as well as a cocoa development centre. Our team is committed to the acquisition of beans, the fermentation, drying and exporting of well fermented beans and in all training activities.
Highlights in 2018: • Puratos Grand-Place Vietnam bought cocoa from • 1.500 farmers took part in training of reasonable about 2.942 farmers through a network of more pricing geared to capacity building and to than 100 “harvest groups,” i.e. groups of several improving price transparency in the supply chain. farmers and their consolidator (fermenter or • Seven farmers took part in a closed loop harvester). agricultural project. The project focuses on a • 1.500 individual farmers attended training in the sustainable cocoa production system that involves field geared to good practices and productivity. stockbreeding. The programme is based on the effective results • Puratos Grand-Place Vietnam conducted a of seven reference Cacao-Trace™ farms. In 2018, feasibility study to launch an agroforestry and the emphasis was on individual coaching. carbon neutralization programme in Vietnam as of 2019 for 286 hectares strengthening its environmental action.
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Cacao-Trace™ in Ivory Coast
In 2014, Puratos entered into a partnership with an organisation of farmers from the San Pedro region through the Entreprise Coopérative de Saint Paul (ECSP) – a partnership for the implementation of the Cacao-Trace™ sustainability programme. The aim of this programme is to create value for all by improving quality continuously, particularly of taste. Because it is by creating value and by sharing this added value that we will be able to improve the income of cocoa farmers and their living conditions considerably, and create a sustainable cocoa chain by extension. The farmers who participate in the Cacao-Trace™ programme benefit first from support to build their capacities for better farming practices, then from a quality premium and finally from a Chocolate Bonus. Whereas such training can help increase the yield, and therefore the revenue of the producer, to which the quality premium is added, the Chocolate Bonus is another means to enable producers to obtain additional income. Because for each kilo of Cacao-Trace™ chocolate sold by Puratos to chocolate makers, the latter pay the equivalent of CFA F 65 (€0.10) for the benefit of the community.
Highlights in 2018: • 4.318 tonnes of cocoa beans were purchased from the ECSP cooperative. • A first part of the quality premium for CFA F156.601.350 (€ 240.771) was paid to the cooperative and to beneficiary producers. • A Chocolate Bonus for an amount of CFA F38.724.000 (€59.603) was paid to the producers for a community project. This Chocolate Bonus will be used to build a primary school. • Financial support of CFA F95.145.872 (€146.378) was provided to ECSP to implement activities under the Cacao-Trace™ programme. • 730 producers underwent individual coaching to adopt and apply the best farming practices, particularly to improve quality, with the emphasis on fermentation. • 4.000 young plants of shade trees were distributed to cocoa producers for the agroforestry programme.
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Cacao-Trace™ in the Philippines
At the end of a development phase of the 1.5-year programme in the southern province of Mindanoa in 2017, Puratos concluded a strategic partnership with Kennemer Foods, an agri-food company based in the Philippines and geared to the sustainable development of cocoa production on the Island of Davao.
Kennemer Foods instigated the revival of the supply chain by providing innovative financing modes and fixing clear results for coconut producers in Davao. Cocoa is now interposed with other crops and is spreading rapidly on the island.
Puratos is currently investing in three fermentation centres, the third of which will be built in 2019, and is committed to the local communities through the implementation of the Cacao-Trace™ programme. This development also comprises implementation of the Chocolate Bonus.
Highlights in 2018: • PGPI bought cocoa from approximately 1.400 farmers from the region of Calinan and San Isidro, where all the farmers sold raw cocoa beans to the post-harvest centre of Kennemer. • 520 individual farmers took part in training in the field geared to best practices and productivity, the rehabilitation of cocoa and farm management plans. The programme is based on the expertise of Kennemer and the system followed in the Philippines. • Two Cacao-Trace™ post-harvest centres in partnership with Kennemer benefited from support for continuous improvement and monitoring to attain a superior quality. • PGPI conducted a feasibility study aimed at launching an agroforestry and carbon insetting programme on the island of Davao on 510 hectares as of 2019 to strengthen its environmental activity. • A specific R&D programme is underway to assess and disseminate the varieties of cocoa obtained by cloning that have a high aromatic potential.
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Cacao-Trace™ in Papua New Guinea
At the end of the development phase of the programme, Puratos entered into a strategic partnership with Olam Cocoa at the end of 2017 to improve the means of subsistence of cocoa farmers and their communities by focusing on improving quality.
A member of the OLAM group, Outspan, has been operating in Papua New Guinea since 2000 and has acquired significant expertise in the management of the cocoa supply chain.
Outspan was selected as a local partner to implement Cacao Trace™. The ideas for development advocated by Cacao-Trace™ correspond in large measure to the Olam Livelihood Charter.
The history of cocoa in Papua New Guinea started in the 20th century during the colonial period. Production increased in the 1990s, reaching a peak of some 50.000 tonnes. The harvest has decreased considerably as of 2010, mainly due to the havoc wreaked by the cocoa moth. In 2018, the harvest rose to 40.000 tonnes.
The controlled Cacao-Trace™ programme (certified to be organic) was started in 2018 in the region of East Sepik.
Highlights in 2018: • Puratos bought cocoa from approximately 1.400 • PGPI conducted a feasibility study aimed at farmers from the East Sepik region. launching an agroforestry and carbon insetting • Puratos invested in around 130 small post-harvest programme in East Sepik on 1.160 hectares as of centres by installing driers in the sun with 2019 to strengthen its environmental activity. individuals from the community. • A specific R&D programme is underway to assess • Young plant distribution programmes are and disseminate the varieties of cocoa obtained underway (20.000 units), accompanied by by cloning that have a high aromatic potential. training and monitoring practices. • Around 2.000 individual farmers have taken part Implementation of the Chocolate Bonus programme in training in the field geared to best practices and in Papua New Guinea is expected to start in 2019. productivity, the rehabilitation of cocoa and farm management plans.
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4. Our commitment to a sustainable fruit supply
At Puratos we believe that local fruit sourcing and the knowledge of the chain from Field to Fork will have a positive impact on our quality and gives full transparency to both farmers and consumers. We want to push local sourcing to improve quality and ensure good supply by supporting local farmers to increase their knowledge, quality and productivity.
That’s why we are committed to implementing our Local Fruit Sourcing Programme. It describes the way of working and minimum criteria for a Puratos affiliate wanting to produce fruit fillings with locally sourced fruits for which the Field to Fork chain is controlled. It means that Puratos is involved in the selection and follow-up of the fruit growers. This programme gives a set of criteria that define practices covering different aspects such as good social, economic and environmental practices, as well as quality and traceability practices.
The Local Fruit Sourcing Programme is based on the following principles:
1. Quality and traceability 2. Social responsibility 3. Health and safety 4. Best agricultural practices 5. Environmental responsibility
New supply chains have been put in place in Mexico, thanks to the local team. Close cooperation was established between our Mexican subsidiary and local strawberry and pineapple producers. In addition to the social commitment, this activity enables us to improve the quality of our filling.
The contracts are signed directly with the producers or with the processors for the fruits needing a pre-processing step. This enables better living standards, and, thanks to the sales security we provide, our suppliers can invest in projects for the longer term, such as fruit processing plants. This in turn means more – and more diversified – work for their community. Puratos Mexico has also started to provide training courses for producers, to spread good practices and enable producers to become more profitable.
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5. Planet Mars
No-one can ignore the extent of the environmental crisis facing humanity. There is an urgent need to reduce our environmental footprint to preserve our planet for future generations. We do not wish to stop there. To work towards contributing to better living conditions on Planet Earth, we decided to also study Mars. The two planets are distinctly different in important ways, but studying Mars can bring us new ways of working on Planet Earth. We all know there is an increasing probability of a human colony settling on Mars and we have decided to investigate opening the first bakery on Mars – while creating spin-offs for Earth.
The project “Mission to Mars” was launched in December 2018 and will be set-up in Q3 of 2019 on the Groot-Bijgaarden site. It will combine a visitor and research centre made of hermetically closed insulated containers.
The objective of the base is to find new and efficient ways to produce wheat under controlled conditions while looking at increasing the yield and quality of proteins, increasing the nutritional value and investigating newly emerging crops.
We will also perform baking tests to explore new technologies and working methods towards the set-up of a first bakery on Planet Mars. As there will be no commercial yeast we will also look into further investigating the role of sourdough, knowing that “The future of bread lies in its past”.
Apart from the scientific interest of knowing our universe better, there are several spin-offs which we believe would improve life on Planet Earth. The Puratos “Mission to Mars” project foresees addressing the challenges of climate change and improving food quality and food supply, hence food security.
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PLANET
No-one can ignore the extent of the environmental crisis facing humanity. There is an urgent need to reduce our environmental footprint in order to preserve our planet for future generations. Puratos considers this as an opportunity to reduce the company’s carbon footprint, water consumption and waste generation. We have
clear objectives: become CO2 neutral by 2025 and water balanced by 2030. In addition to our individual company efforts, we wish to do more. This is why the Puratos Group has joined the Belgian “Sign for my future” movement which is sending a strong signal to local politicians and requesting clear measures for our planet and climate.
Key performance indicators 2018:
Net emissions 99.000 tCO2 equivalent in 2018
• 14% net CO2 reduction in 2018 compared to 2017 (15.000 tCO2e less than 2017);
• Used 50% renewable electricity in 2018 (saving 21.000 tCO2e compared to business as usual);
• Our energy efficiency has improved by 8% since 2012 (saving 10.000 tCO2e per year).
Water usage 1.8 billion litres (8% as ingredient) • Water efficiency improved by 2% since 2012 (saving 42 million litres of water per year); • +6% water used safely recuperated (10 million litres saved).
Waste reduction • 6.630 trees, 9.75 million litres of water and 1.1 million litres of oil saved by improving our bags used to pack powder products.
Our long-term objectives: • 2025: make our direct operations carbon neutral • 2030: have a balanced and sustainable water management by reducing our own water consumption and improving the quality of our water discharge.
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1. Carbon neutral and water balanced
At Puratos we it as our responsibility and as an efficiency, identify opportunities for improvement opportunity to reduce the company’s carbon, water and measure the specific performance of major and waste footprint. An ambitious strategy with consumers. specific objectives was defined in 2017 to become carbon neutral in 2025 and to have a sustainable Energy and water saving: the driving force behind water balance in 2030. our new environmental strategy is improving our efficiency to reduce our carbon footprint and water 2018 was an important step. This is the first year use per tonne produced. In 2018 we improved our to cascade and roll out the implementation of water efficiency by 3% compared to the previous our new environmental strategy. A total of 106 year. The main goal for 2018-2019 is to identify and projects (2.7 million euros investment in 2018), have prepare a five-year plan for the top 20 sites to achieve been completed or are underway to establish the the improvement goal of 25% improved efficiency by foundation of our strategy in operations. 2025 compared to 2016. A major project has already been approved; a future combined heat and power Environment Champions have been appointed on system for the Belgian headquarters (2.7 million euros the 20 main sites in order to plan, coordinate and investment) which will reduce the headquarters’ implement the necessary improvement actions. This primary energy consumption by 15%. The Andenne new community was created in the 12 countries, factory, the largest water consumer in Puratos, is
representing 80% of our CO2 emissions and water working on a project aiming to reuse its effluent to consumption. reduce the site’s water consumption by 30%.
Measuring to improve it: all major production Produce renewable energy on site: several projects sites have started to implement a detailed and were launched to produce renewable electricity from specific energy water monitoring system to track wind and solar panels. In Chile, solar panels on the performance by production department and major roof now provide 20% of the site’s energy use. A equipment. The aim for Puratos is to track our contract was signed by Puratos China and in 2019
Puratos Chile
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Puratos China
the factory roof will be covered with solar panels Securing a sustainable water supply: the aim is that will provide 25% of the site’s electricity use. to identify, quantify and reduce water use at the In Belgium, a partnership was signed with a large main sites. In Belgium, 10% of the water required energy company to install a wind turbine on the comes from the recovery and reuse of rainwater. The production site in Lummen and Erembodegem. The ambition is to reach 50% in the coming years. permit process is complex and will take another two years at least. In both cases the wind turbine could Agroforestry: creation of a partnership with supply almost 100% of the annual site’s electricity PurProjet. In 2018 several field studies were conducted consumption. in the Philippines, Vietnam, Papua New Guinea and Mexico. The objective was to develop and validate Sourcing green electricity from the grid: 50% the 2019-2030 roadmap that will allow us to develop of Puratos’ electricity use in 2018 comes from agroforestry in the Cacao-Trace™ plantations. In renewable energy purchased from the grid. This agroforestry, combinations of trees with different allowed Puratos to decrease its carbon footprint in plants (avoiding monoculture) are intentionally 2018 by 14%. designed and managed as a whole unit to diversify source of revenue, enhance agricultural production Wastewater treatment: In Russia the new of the land, improve soil conservation, and increase wastewater treatment flow allows us to ensure water biodiversity. The hundreds of thousands of trees that discharge is safely returned. In Belgium, the Lummen will be planted will sequestrate atmospheric carbon site has a brand new anaerobic reactor to double its and thus help Puratos reduce its carbon footprint in its processing capacity to support increased production own supply chain. volumes. China has installed a fish pond at the end of its treatment plant to demonstrate the high quality of the discharged effluents and also to provide employees with a pleasant place to relax outside. For the fish pond, Puratos China also received praise from the government.
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2. Waste prevention and management
We are committed to investigating new ways of waste management, with the ambition to reduce drastically the use of plastic, stimulate the reuse of materials whenever possible and sort waste fractions as much as possible in order to allow recycling. We are committed to reducing waste in the production process, and to providing baking, pastry and chocolate products that enable us to reduce food waste among our customers and consumers.
Packaging -The Opti-Bag Bags used to pack Puratos’ powder products By the end of 2018, Opti-Bag has been launched in (Bakery Mixes, Bakery Improvers, Patisserie Mixes, Belgium, Poland, USA, Canada, Russia, Hungary, Italy Emulsifiers, Enzymes) were optimized in terms of and Portugal. In 2019, further focus will be given to dimensions, number of layers and composition of Mexico and Spain. layers with a focus on harmonization and quality assurance throughout the whole supply chain. By the end of 2018 this Group initiative allowed Puratos to reduce its packaging footprint by 400 metric tonnes of kraft (native) paper, representing a production equivalent of:
• 7,000 trees • 10 million litres of process water • 1 million litres of process fuel.
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Internal waste Food wastage Waste management and environmental protection By going back to basics (see “Heritage” chapter), go hand-in-hand. Prevention, reuse and recycling we have revived the tradition of sourdough, which, are the key words at Puratos. Energy recovery and thanks to acidity and the presence of favourable disposal are last-resort actions for non-recyclable micro-organisms, increases the life of bread. waste.
In 2019 Puratos started a waste reduction programme to investigate new ways of waste management, with the ambition to reduce as much as possible the use of plastic, to stimulate the reuse of materials whenever possible and to sort waste fractions as optimally as possible in order to allow recycling. A taskforce is also rethinking our own packaging in order to be in line with our ambitions and not be waste producers ourselves. We have developed solutions to improve product stability, and processes for limiting product wastage for our customers. We are also developing ingredients to prolong the freshness and life of products.
Losses on the production lines in bakeries are RESIDUAL around 3% without improver, and drop to 0.5% with WASTE improver. A cake packaged without improver can be kept for five days; one with our improver can be kept for 21 days.
We also have an entire series of conventional solutions for products to keep longer, as well as PMC WASTE UHT (ultra-high temperature) process, frozen and powder solutions. They enable our customers to plan production according to the location of their warehouse, day of the week, hour of the day – and provide a range of baking and pastry products more in line with real demand.
PAPER The carbon footprint of a food product is the total amount of greenhouse gases emitted throughout its lifecycle. The further along the supply chain that one kilogram of food is wasted, the higher the carbon intensity will be. Therefore, we try to reduce our foodprint as much as possible by prolonging the freshness and shelf life of our products.
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HERITAGE
While Puratos always aims to be a reliable partner in innovation, we also believe in preserving traditional ways of making bread, cakes and chocolate. Bringing these aspirations together allows us to serve our customers and consumers in the best way possible, by adding value to tradition.
Our passion for nature, authenticity and diversity has led to our sourdough library which plays a key role in the preservation and renewal of this ancient technique of natural fermentation. We also studied the history of bread and its multiple uses throughout the world so as to be able to offer consumers the best of this product. With the same passion, we preserve the heritage of Belgian chocolate with its incomparable taste, as well as certain old varieties of cocoa.
Key performance indicators 2018: • 115 sourdoughs from 20 countries are stored in our physical library in St. Vith. • 1.441 sourdoughs from 1.187 cities have been registered in our digital library since September 2016.
Our long-term objectives: • Through our sourdough library we want to preserve the traditional way of making bread. Sourdough gives a unique taste to bread and is different all around the world. We undertake responsibility to keep this tradition alive.
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1. Bread
The key to the future of bread lies in its past. To create the best products for bread making, Puratos aspires to get back to basics, and identify best traditional ingredients of good bread.
O-tentic, ancient tradition of fermentation In tracing the history of bread making, we discovered a reference to the “best bread” in the works of the Roman poet Horace in 37 BC. He wrote that the “best bread in the world” is in Puglia, “so good that the seasoned traveller takes a ration along before continuing his journey”. Naturally, at that time, sourdough was the only way to ferment and raise bread, as yeast was not commercially available.
Today, the emblematic bread from the region of Puglia is known as Altamura bread. Puratos worked together with Professor Marco Gobbetti of the University of Bari to recreate the wheat sourdough used to make this bread. We have used the latest fermentation technologies to create O-tentic durum, now considered as our greatest baking innovation since the launch of S500 in 1975.
This Puratos innovation stems from the search for the best bread recipe in history. But what about the diversity of recipes?
Bread of the world, to bring authentic tastes to life Bread does not simply consist of flour, water, salt and yeast. There are different variants in all regions of the world that are an integral part of basic food, and of the local culture. Thanks to our global presence, we have been able to develop products based on traditional local recipes, celebrating the authentic taste of bread from all corners of the world. To revive and share these breads, we grouped these recipes under the concept of “Breads of the World”.
The Sourdough Library. The world needs safe places to preserve its precious objects. Let us preserve the sourdoughs of the world. The Puratos Sourdough Library in St. Vith was created to store and preserve the best sourdough cultures in the world. By February 2019 the sourdough library contained 115 samples from 20 countries. Like grains, sourdoughs are delicate and can be easily misplaced or damaged, leaving the world a little poorer than before.
Bakers are well aware of this and are delighted that someone has undertaken to preserve a part of their sourdoughs elsewhere than in their bakery. After all, their particular sourdough is not only part of the heritage of the flavours of the world, it is also their “bread winner”.
The library can be visited virtually at: https://www.puratossourdoughlibrary.com. It is an extraordinary experience for those who cannot make it in person to the Center for Bread Flavour in St. Vith.
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“The Quest for Sourdough” Puratos is looking for new and unique sourdoughs They all have different types of flour; some are solid, throughout the world to add to its library and thus and others liquid. Some are based on very particular increase its bread diversity. A website has been created types of fermentation – including rose petals, the for that purpose: www.questforsourdough.com Jamaican hibiscus, and green coffee beans.
This initiative is one of a kind in the world of baking. In fact, bakers are just as passionate about sourdough Since it was launched at the end of September 2016, as we are, and their creativity knows no bounds. we have already registered 1.441 sourdoughs from It inspires other bakers and customers to try and 1.187 cities in 82 countries and regions, such as the ferment new ingredients and to use new methods. USA, Chile, the Caribbean, Europe, the Middle East, The sourdough library has a promising future thanks South Africa, China, Australia and New Zealand. to this quest.
What is sourdough? Sourdough is a natural product used to make bread, i.e. to ferment and raise the dough. It is composed of flour, water and micro-organisms like lactic acid bacteria and yeasts. These are naturally present in the flour and the environment; some say that even the hands of the baker bring in some of the micro-organisms. The taste, flavour and fermentation power of the sourdough depend on the temperature, the time, the flour and of course the love of the baker! We say that sourdough is the soul of the bakery.
Videos • Virtual Tour https://www.poppr.be/virtualtour/puratos/#p=scene_p1 • UK, Northhampton https://youtu.be/9SyTfUtRWaY • China, Baixiang, Wuxi https://youtu.be/68QkRv20XHY • Japan, Tokyo https://youtu.be/b-UZGT_SfkE
La “Maison du Levain” The history of sourdough is so rich that our a lot of countries. For many bakers, preparing their sourdough library, where we store, document and sourdough was a time-consuming activity because protect its heritage for the future, was not sufficient. they needed to feed it every four to six hours. Yeast So we decided to create the “Maison du Levain”, a offered such a convenience that bakers widely place dedicated to the history, the present and the adopted this new ingredient and forgot about their future of sourdough where visitors will be able to sourdough. discover the origin and evolution of sourdough. Today, sourdough is more popular than ever, and With the discovery of the microscope came a together with our customers we want to bring this better understanding of sourdough, which allowed tradition back in our daily bread. Thanks to modern scientists like Louis Pasteur to isolate yeast from technology and a new understanding of these sourdough and start producing yeast for commercial complex fermentations, we can offer a wide range of purposes. This led to the extinction of sourdough in ready-to-use products based on sourdough.
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A second life for the very first Sensobus Our very first Sensobus is displayed at the “Maison du Levain”. This English double-decker bus from the 1960s received more than 50.000 visitors before it was retired in 2009 and was replaced by newer models.
The “Maison du Levain” will show our customers that we care and that we are there to help them because we believe that the future of bread lies in its past. Together with us they can Join the Tradition and Create the Future.
2. Belgian chocolate
Belgian chocolate – to perpetuate taste and heritage world, by always using the best ingredients and the best equipment to maintain the quality of Belgian chocolate forever, respecting the traditional way of producing.
Belcolade has produced chocolate for 30 years now in Belgium, using the finest raw materials, respecting the Belgian way of producing chocolate, and enhancing the taste. Belcolade uses no fat other than that of the cocoa. As a result, Belcolade chocolate Belgian chocolate is part of our direct heritage, as the has a particular, quite distinctive taste, highly history of Puratos started in Belgium. appreciated in consumer tests.
But what makes Belgian chocolate so different? The history of chocolate, in cooperation with Already in the 19th century, chocolate had to contain “Choco-Story” at least 35% cocoa to be named as chocolate. The Puratos works in cooperation with the Choco-Story refinement in Belgium is such that chocolate leaves museums to share the story of cocoa, its processing no grain sensation when it melts on the tongue. and how it is turned into chocolate, and to promote The conching time is also by tradition longer in world-class Belgian chocolate. Seven museums Belgium. Moreover, traditionally, Belgian chocolate are already open in Bruges, Brussels, Paris, Prague, manufacturers have always worked with high-quality Uxmal, Valladolid, and Beirut. cocoa beans, which give the chocolate a particular taste. Finally, the praline, invented in Belgium in 1912, Choco-Story conducts a yearly study on traditions has become a typically Belgian product associated that were or are still strongly linked with cocoa in the with all kinds of celebrations, and has greatly world, such as those of the Mayas and Kunas. contributed to the fame of Belgian chocolate.
Puratos is continuing this tradition which has made the reputation of Belgian chocolate throughout the
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The largest criollo plantation in Chunca, Mexico That is why Puratos has deployed the necessary Another important sustainable development project resources to protect this old, nearly extinct variety to for Belcolade concerning its products and the link produce a chocolate with unique tasting properties. between tradition and innovation started in 2008 Our objective is to plant more than 300.000 trees with the acquisition of a plot of 300 ha in Chunca (66.000 already planted) – a project which will (formerly Tikul) in Yucatan, Mexico. On 60 hectares provide a wildlife sanctuary and contribute to local we planted criollo, one of the oldest, rarest and finest environmental conservation and biodiversity. varieties of cocoa. In 2017, 315 additional hectares of land were What makes this cocoa very special is its low purchased, of which 70 have already been prepared polyphenol content. During the fermentation for planting, which promises far more criollo to come process, particularly mild flavours develop, creating – with a bit of patience! an exceptional chocolate.
Library of native Mexican cocoas On the Chunca plantation, traditional Maya huts have been built to house a collection of native Mexican cocoa varieties. There are five old cocoa varieties in Mexico, and we want to preserve them using the model of the sourdough library.
To that end, the flowers of the different cocoa varieties will be cryogenized to be preserved and re-used as needed. A small plantation with the five varieties of each cocoa will be developed.
In Mexico, Puratos will operate the whole cocoa-chocolate chain. The Chunca plantation will provide some of the beans we need, but above all provide us with knowledge on cocoa growing. In Comalcalco, Tabasco, we bought four hectares where we installed our collection, fermentation and drying centre.
These beans will soon be processed into mass in a new factory next to our distribution centre in Mérida. The cocoa mass will be sent from there to our chocolate plants in Tizayuca, Mexico and in the USA to produce chocolate with Mexican beans, and to Belcolade to produce a Mexican origin chocolate.
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PEOPLE
Puratos employees are our present and future human capital. They develop, produce and market a constant source of delicious and innovative products and it is they who create environmentally friendly solutions. Equally important, it is the people at Puratos who transmit our knowledge, who spread the message about the importance of sustainability and its implementation and who are the ambassadors of our corporate values.
Key performance indicators 2018: • We organised 2.936 training days worldwide for our business development community (+33% compared to 2017). • Between 2011 and 2018, the number of accidents declined by 40%. • Our staff represent 91 nationalities in 71 countries.
Our long-term objectives: • Make every employee feel part of the Puratos Magic Family.
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1. Puratos Magic
Puratos Magic has been at the heart of Puratos for almost 100 years. It is the strongest commitment we can make towards our employees. Puratos Magic has its roots in Puratos’ history and represents our way of doing business. Puratos has a strong reputation and this is built on the ethics and integrity of our people. In everything we do, ethics underpin our decisions: being true to our conscience, maintaining our professional standards and honouring our commitments. Puratos is committed to being an employer of choice that promotes Puratos Magic, which is based on the following values:
Quality Ethics Vision
Getting it right from the Being true to our Innovating with vision. first time, every time - and conscience, maintaining Building on experience, always looking to improve our professional searching eagerly for new still further. standards, honouring our horizons and helping our commitments and assuring customers prepare for an absolute food safety. ever-changing future.
Courage Passion Team Spirit
Seizing opportunities, Being passionate about By working together, never being afraid to try helping our customers grow achieving more and having new things. their business through new more fun, and believing ideas, as well as creating that the whole exceeds the a working environment sum of the parts. that stimulates people development.
These values reflect how to interact with colleagues, with external business partners, and with stakeholders. They reflect how the Puratos Group believes business should be done in a responsible manner.
Every single employee at Puratos has to adhere to these values. It is by believing in the same values and adopting the same working principles that we are truly able to deliver our best.
Through its values and principles, Puratos Magic is the first ambassador of a sustainable company in a sustainable society.
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2. Learning and development
Continuous learning and curiosity are at the heart of our development.
With innovation at the heart of everything we do, Puratos showed its commitment to continuous learning through the creation of our own Puratos University in 2006.
Learner Puratos community University +2500 +100 Product Internal 40 trainers /year
Campuses in Europe, APAC and LATAM Special programmes on Strategic Innovations and Top Priorities
The Puratos University offers top-quality content on our products, technologies and solutions.
The university has campuses in Asia, Latin America and Europe at our headquarters, which provide training courses on the products (baking, pastry making, chocolate), on functional capacities and leadership skills.
Since 2012 our management team can experience the Puratos Magic and strengthen customized leadership skills in a fast-paced environment via our “Blended Leadership Programme”.
Learner Grow your community Leadership Leadership 13 Programmes/year U-team Partnerships with Digital Learning Top Leadership on Foundational trainers and coaches Leadership Skills
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3. Safety and Health
Accident prevention The first responsibility of a company is to make sure that its employees can work safely and are in good health. Puratos implements a certain number of measures to prevent occupational accidents.
The data on accidents throughout the group are centralised and processed via our “Safetynet”. In 2018, two e-learning modules were successfully followed by more than 2.000 people. A module for non-operational staff was completed and launched at the beginning of 2018.
2018 was better than 2017 in relation to safety numbers as the main indicators show a decrease of the LTIR (Lost Time Incidents Rate or number of accidents per 200,000 worked hours) from 1,093 end 2017 to 0,956 end 2018. Between 2011 and 2018, the number of accidents declined by 40% (from 146 to 88). Similarly, between 2011 and 2018, the number of days lost went from 3.861 to 2.280, or 40%, bearing in mind that our workforce increased by 40% over the 2011-2018 period.
4. Diversity
We firmly believe that people with different backgrounds, experiences, knowledge, skills, perspectives and ideas create a stronger organisation and that this leads to more innovation. Puratos profiles itself as an equal opportunities employer that offers the same chances to all employees irrespective of their age, nationality, gender, sexuality or religion.
Diversity within Puratos has already long been a reality, whether in relation to functions, age, genders or nationalities. There are 91 different nationalities within the Group and our headquarters is similarly multicultural: out of the 700 employees there, 28 nationalities are represented.
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5. Rewarding employees fairly
At Puratos we are committed to paying our employees fairly and competitively, in accordance with responsibility, performance and potential. Every employee’s total remuneration is based on the level and type of work they do (the position of an employee) and the performance/potential within the context of market benchmarking and budget guidelines.
Allocation of employee remuneration is in accordance with company policies, subject to approval from our Group Executive Committee and Remuneration Committee and in full alignment with our values and principles of diversity (such as equal pay for men and women).
6. The Voice
In line with its values and its family spirit, Puratos wants to know what every employee feels and thinks about the company and how we can do better. Therefore we launched the companywide engagement survey for Puratos Group, “VOICE!”
By the end of 2018 it had been rolled out in 41 countries of the Puratos Group. In 2019 we will conduct it in the remaining countries of the Group.
The survey addresses a variety of important topics such as engagement and enablement of employees, leadership, structure, processes and quality. It is based on a set of standard questions to:
• Better understand employees’ views about our organisation and ability to perform their job effectively; • Provide employees with the opportunity to contribute, share their ideas and opinions in order to make the organisation more efficient and a better place to work.
Based on the results, action plans are developed in workshops together with the employees.
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7. What is Puratos Magic to our employees?
1 Robbe Heymans, Belgium, Management Trainee R&D
Halfway through my first role as a global graduate in R&D, I’ve been able to experience the passion and high-quality knowledge that characterizes people working at Puratos. These people inspire me to grow and give me the trust and strength to extend my horizons by embarking on international job assignments. I am confident that working at Puratos grants the possibility of enriching yourself and as a result, Puratos’ customers too. 1
2 Linda Bekmane, Latvia, Technical Advisor
Since joining Puratos six years ago I feel that my personal and professional growth has increased substantially. The feeling of belonging to this big family, which with the help of the Puratos O-tentic Guild has opened my doors to the whole world, is indescribable. The certainty that support and advice regarding any situation is only one click or a phone call away is magical. 2
3 Josue Lozano, Mexico, Product Manager
Puratos Magic is incorporated in our day-to-day business, in our way of being and way of working. It is the extraordinary feeling that every employee is valued and forms part of a family that works together to attain common goals. 3
4 Ştefania Slăboiu, Romania, Assistant Manager to Regional Director Central & Eastern Europe
I was delighted to join Puratos six months ago. From the very beginning, I was very well received in the Puratos Romania team thanks to the team spirit and wonderful colleagues who are willing to share experiences and information about Puratos. I 4 love the extraordinary collaboration between the teams, the constant opportunities to learn new things about the wonderful sector in which I work. What is beautiful in #PuratosMagic is that the feeling of developing your abilities and skills is present in every wonderful project you have to do. Compared to other companies, Puratos offers you complete and accurate feedback and assessments, helping in your career development. It is very important to come to work every day in love: in love with #PuratosMagic!
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5 João Coelho, Portugal, Marketing Analyst
Puratos Magic means feeling special as an employee and being part of an integrated positive corporate culture in which everyone of us contributes towards a greater good. Through Puratos Magic we share a set of values, attitudes and beliefs with our colleagues, working all together as one in a positive atmosphere. It 5 is a shared passion for what we do as a company. We are given the space to create and innovate, to make every day better than the one before. It’s a commitment between the company and its employees, based on mutual respect and continuous improvement on both professional and personal levels. Puratos Magic means that everyone of us brings our personal best towards a common goal, based on a shared set of values and a true passion for what we do, every single day.
6 César Léon, Peru, Technical Advisor 6 Working in Puratos is very dynamic. Throughout my 24 years in the company I have had many opportunities for growth and learning. The magic of Puratos is the art and passion with which we do things. I am very proud to work in a place that makes high-quality products to delight our customers.
7 Takuya Sumita, Japan, Technical Advisor 7 Having worked for Puratos for 20 years, I have never been bored with my work, because the company gives me opportunities to challenge myself and learn new things. The fun of rising to challenges will never cease! Creating new stories with our customers and through teamwork with colleagues, and then sharing success, is a pleasure in Puratos. It’s Puratos Magic.
8 Enzo Genestal, Argentina, Operator 8 For me, Puratos Magic is the opportunity to celebrate happy moments and goals with colleagues and feel that I am part of a big team. That’s the spirit.
9 Michelle Tangonan, Philippines, Finance Manager
Puratos Magic lives within me. I started with Puratos almost fifteen years ago and 9 never looked back since; I am still excited to go to the office every day to collaborate, exchange ideas and achieve great results together as a team. Puratos Magic is no secret. It is basically working with burning passion as a team while having fun. Puratos gives me the freedom to think “out of the box” and to always challenge the status quo in the spirit of continuous improvement so that my team and I can always find a solution to make things better. I have been blessed to visit many Puratos subsidiaries worldwide and the Puratos Magic lives on despite the cultural differences. I am and will always be a proud member of the Puratos family.
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COMMUNITIES
At Puratos, we believe in contributing to the countries in which we operate, be it sharing our knowledge and skills with the less fortunate or investing in sustainability programmes that safeguard biodiversity and improve the living conditions of the local people. We are all part of a social community and helping those who are less fortunate is also supporting the next generation.
Our performance in 2018: • 19 students graduated in India and 21 in Brazil, all were recruited by Puratos or one of its customers. • We paid a total bonus of €288.000 to our Cacao-Trace™ farmers (+62% compared to 2017).
Our objectives: • Open one new Bakery School every year. • Find job placements for all graduates. • Increase the total Chocolate Bonus (€ 0.10/kg) reallocated to farmers annually.
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1. Puratos baking schools, for decent livelihoods in India, Brazil and Mexico.
People matter at Puratos, which is why we believe that it is very important to not only share our skills and know-how with our commercial partners, but also to help underprivileged communities in the countries where we operate. Being a reliable local partner is part of our international business philosophy, which we are delighted to have put into practice by opening three Bakery Schools in India, Brazil and Mexico, with fourth and fifth schools opening in 2019 in South Africa and Romania. These schools are very close to the hearts of Puratos employees.
Due to an increasing demand for finished goods such as cakes, pastries and chocolates and a significant shortage of skilled labour, the Bakery School Foundation is determined to teach young people the skills needed to work in the bakery, patisserie and chocolate sectors. As the global expert in the bakery, patisserie and chocolate industry, we are uniquely positioned to bring a life-changing opportunity to young, keen students from underprivileged backgrounds. The foundation has an equal opportunity policy for boys and girls, and students are recruited irrespective of social background. The foundation offers them the means to learn from best-in-class faculty members and the opportunity to be hired by top-class employers in the bakery and hospitality sector. At the same time, we offer the industry high-quality and deeply trained resources to not only meet but exceed the benchmarks of this specialized industry.
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India Puratos Sanskaar Foundation came into existence in 2014 and is being operated on the campus of Shiravne Vidyalaya and Junior College in Navi Mumbai. Its aim is to provide training and knowledge in the field of bakery, patisserie and chocolate to underprivileged students in a state-of-the-art environment.
As of today, five groups of students have been enrolled and trained to become self-sufficient by securing employment. Three groups comprising a total of 47 students are already employed in the industry; seven with Puratos India.
On 5 July 2018 the third group of students graduated from Puratos Sanskaar Foundation. A total of 19 students from diverse backgrounds received their certification in bakery, patisserie and chocolate. Each of these graduating students has been assisted for job placement with leading players in the industry.
How do the students experience this opportunity?
Prashant Ashok Katare (Class of 2017-2019): “From an early age I was very interested in this field and wanted to make a career in it. After joining the Puratos Bakery School, I feel that I have chosen the right path to be successful in life and fulfil my ambition to excel in the field of bakery and patisserie.”
Anuradha Premchand Mishra (Class of 2014-2016): “I joined Puratos Sanskaar in 2014 because I was interested in a new field that was developing in our country. Initially I was not sure about such a career but gradually when I realised the importance of this profession, I was proud of my decision. After two years at the Puratos Bakery School I was selected as a Trainee Technical Advisor and now I have been working for Puratos India for almost two and a half years. I have been promoted to Jr. Technical Advisor and am also part of the ideation team who work to give ideas to Indian customers. It has been a great journey for me so far.”
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Brazil A partnership between Puratos, Gol de Letra Foundation and SENAI School created the Brazilian Bakery School. It offers a formal education in bakery, patisserie and chocolate for underprivileged young people.
In April 2015, after several exchanges and visits to the local communities to understand the needs, the Bakery School at Vila Albertina was inaugurated, welcoming 24 students from three different schools. Many of the participating students come from large families with low incomes and most are participating in government income transfer programmes such as Child Benefit (Bolsa Familia) and BPC (Beneficio de Prestação Continuada), a continuous Cash Benefit Programme.
On 1 February 2019, 22 students of the second group of students (2017-2018) obtained their certification in bakery, patisserie and chocolate.
How do the students experience this opportunity?
Saullo Almeida (Class of 2018-2020): “I really like the course, I learned a lot and the content opened my eyes for countless things. In the future, I would like to be a pastry chef and would love to open my own pastry shop. My dream is to increase my knowledge of pastry and to live abroad.”
Stefhany Oliveira (Class of 2015-2017): “I graduated from the first group of students and started working as a technical assistant in November 2018. It’s enabling me to gain experience and independence to work by myself. I see how important knowledge is and fortunately I always receive help and guidance from the technical advisors, who always motivate me to improve myself. I would love to go to college to study food technology, perhaps complete a postgraduate course in quality and food safety, and of course have a successful career here at Puratos. What inspires me is my curiosity. In order to learn more and to become an expert, the professionals from Puratos motivate me all the time.”
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Mexico On 21 August 2018 the Bakery Foundation inaugurated a school in Tizayuca, Hidalgo. The building, located on the premises of the Rosas Rojas children’s home, includes a large classroom for theoretical classes and computer science, and a large lab for the practical classes. It has the capacity to train 24 students.
How do the students experience this opportunity?
Diana Mendoza (Class of 2018-2020): “I was really excited to start the course and I have high expectations of this two-year programme. I feel as if I have already learned a lot during this first semester and I am enjoying the products I prepare in class. I like to learn new things and techniques because it keeps me motivated and pushes me to move forward.”
Enrique Salgado (Class of 2018-2020): “I enjoyed my first semester at the Bakery School. I always had an interest in cooking but I never learned how to bake. I like to work in a team and I have already tried to bake some of the recipes at home. Being in school has helped me to form my character and to work in an organised and structured way together with my classmates who motivate me every day.”
More detailed information is available in our Bakery Foundation report which is available upon request.
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2. The Next Generation Cacao Foundation
The Next Generation Cacao Foundation is the not- for-profit organisation behind the Cacao-Trace™ programme (for details, see “Responsible Sourcing” chapter). Established in 2016, the foundation’s mission is to contribute to the social, economic and environmental development of cocoa farmers and communities that are part of the Cacao-Trace™ programme.
Passion for great-tasting chocolate and its future is something that connects us all. Only together, communities, through the Next Generation Cacao as a community, can we ensure that great-tasting Foundation. chocolate lasts for years to come. With Cacao- We create value through improved taste, and thanks Trace™ we brought to life an integrated sustainable to this simple and transparent “cocoa-munity” cocoa programme. A package of initiatives (including initiative, we share that added value with cocoa education, training, fair and premium pricing) is farmers. aimed at creating a better life for farmers. But we don’t just settle for market standards. Already we are The foundation oversees the collection and providing tools for the farmers and enabling them redistribution of donations and the Chocolate Bonus. to produce higher yields and higher incomes. But we The running costs, certification fees and royalties want to go further. That’s why we have a dedicated are covered by Puratos, guaranteeing that 100% of team constantly looking for new actions to include the money goes back to the Cacao-Trace™ farmer in the programme, like our unique Chocolate Bonus communities. initiative. More detailed information is available in our Next Under this initiative, for every kilo of Cacao-Trace™ Generation Cacao Foundation report which is chocolate sold, 10 cents is directly returned to farmer available upon request.
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3. Chunca plantation in Mexico and the dynamics of local life
Our reforestation project in Chunca, Mexico, contributes to safeguarding cocoa cultivation and future biodiversity. Together with the local Choco Story Museum it also provides safe and stable employment for local people, enabling families to stay together in a region with little formal employment.
We aim to help the local people by ensuring that the plantation and the Eco Museum contribute both directly and indirectly to employment, and we guarantee a safe working environment. We want the project to help local workers by promoting the relationship between cocoa and the Mayan culture. In this way we aim to ensure a sustainable future for all of those connected to the production of cocoa. Through a reciprocal relationship we support farmers working on the plantation, as well as the women’s cooperative working on the processing of citrus fruits that grow in the valley. Those local fruits are processed into powder which is sold through the Puratos network.
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Sustainable Development Goals (SDGs) Community sourcing Responsible Planet Our people Heritage & Well-Being Health Reference
End poverty 1.1. By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day. 1.2. By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions. 1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance. 1.5. By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure a climate-related extreme events and other economic, social and environmental shocks and disasters.
End hunger 2.3. By 2030, double the agricultural productivity and incomes of small- scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment. 2.4. By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality. 2.5. By 2020, maintain the genetic diversity of seeds, cultivated plants and farmed and domesticated animals and their related wild species, including through soundly managed and diversified seed and plant banks at the national, regional and international levels, and promote access to and fair and equitable sharing of benefits arising from the utilization of genetic resources and associated traditional knowledge, as internationally agreed 4.3 By 2030, ensure equal access for all women and men to affordable Quality and quality technical, vocational and tertiary education, including Education university. 4.4 By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship. 4.5 By 2030, eliminate gender disparities in education and ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities, indigenous peoples and children in vulnerable situations. 4.7 By 2030, ensure that all learners acquire the knowledge and skills needed to promote sustainable development, including, among others, through education for sustainable development and sustainable lifestyles, human rights, gender equality, promotion of a culture of peace and non-violence, global citizenship and appreciation of cultural diversity and of culture’s contribution to sustainable development.
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Sustainable Development Goals (SDGs) Community sourcing Responsible Planet Our people Heritage & Well-Being Health Reference
Clean Water 6.3. By 2030, improve water quality by reducing pollution, eliminating and Sanitation dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally. 6.4. By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity.
Affordable and 7.3. By 2030, increase substantially the share of renewable energy in the Clean energy global energy mix.
7.4. By 2030, double the global rate of improvement in energy efficiency.
Decent Work 8.5. By 2030, achieve full and productive employment and decent work and Economic for all women and men, including for young people and persons with Growth disabilities, and equal pay for work of equal value
8.6. By 2020, substantially reduce the proportion of youth not in employment, education or training.
8.7. Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms.
Responsible 12.2. By 2030, achieve the sustainable management and efficient use of Production natural resources. and 12.3. By 2030, halve per capita global food waste at the retail and consumer Consumption levels and reduce food losses along production and supply chains, including post-harvest losses. 12.4. By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment. 12.5. By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. 12.8. By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature
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Puratos NV/SA - Industrialaan 25, Zone Maalbeek - B-1702 Groot-Bijgaarden, Belgium T +32 2 481 44 44 - F +32 2 466 25 81 - E [email protected]
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