Sustaina Lived

Bahlsen GmbH & Co. KG Podbielskistrasse 11 30163 Hanover Germany www.bahlsen.com

Sustainability by tradition – lived responsibility at Bahlsen

The sense of responsibility and the aspiration of acting sustainably have been firmly established at Bahlsen since the company was founded. That is why Bahlsen’s customers and partners have been placing great confidence in the company and its brands and products for nearly 125 years – and why the business stands for top quality and corporate responsibility to this day. Social and ecological aspects and challenges were always taken seriously and will continue to have high priority for the company in the future. Sustainability is one of the basic elements of Bahlsen’s vision. Sustainable and environmentally suit- able actions are the guiding principle for the Executive Board and all employees. For Bahlsen, sustainability does not mean to achieve a final result; it describes a path which responsible companies have to take. That is why we will continue to set our goals high for improving our sustainability performance, and will do

Bahlsen Sustainability Report 2011 . 2012 . Bahlsen Sustainability2011 Report Sustainability Report 2011 . 2012 everything we can to achieve these goals. BAHLSEN WORLDWIDE BAHLSEN SUSTAINABILITY STRATEGY Editor Bahlsen GmbH & Co. KG Strategy and Dialogue Podbielskistrasse 11 We will continuously advance our sustainability strategy 30163 Hanover and continue to systemise our activities. We consider this Germany to be a continuous learning and change process for the Phone +49 (0) 511 / 960 0 entire company. Our aim is to maintain active dialogue with Fax +49 (0) 511 / 960 27 49 the stakeholders relevant for us. In this context, a high Email [email protected] degree of transparency is important to us. This refers to both our products, that is, origin, properties and quality, and requirements or services regarding our responsibility Editorial office / for the environment and society. Responsibility for the content Michael Klöfkorn Sustainability

Printed by Product Responsibility Druckstudio GmbH, Düsseldorf, Germany We meet our requirement of providing the best possible product quality by buying and using only selected raw Concept and design materials and by tightly controlling our qualified suppli- FIRST RABBIT GmbH, Cologne, Germany ers. In Purchasing, we adhere strictly to the guidelines of our quality policy. Pre-press FIRST RABBIT GmbH, Cologne

Availability Environmental Protection This report is available in German and English. The focus of our environmental management is on improv- Both versions can be found on the Internet at: ing resource efficiency based on continuous improvement www.bahlsen.de AFFILIATED of all corporate processes. We continuously strive to HEADQUARTERS FACTORIES COMPANIES EXPORT COUNTRIES FOCUS MARKETS minimise the environmental stress generated by our busi- Produced environmentally friendly ness activities. This is documented in our environmental This sustainability report was produced entirely management system, which is valid for the entire company. with Saphira Eco products from Heidelberger Hanover Germany Germany 80 countries worldwide North America Druckmaschinen AG. The Saphira Eco line meets Barsinghausen Austria Middle East Berlin Belgium China even the strictest environmental criteria for con- Varel Great Britain carbon neutral sumable materials (paints, varnishes, chemicals Schneverdingen Italy natureOffice.com | DE-136-888926 Employees and Society print production and printing plates) in the print media industry. Luxembourg Poland Furthermore, the sustainability report was printed Skawina Poland In order to retain our employees at the company for Jawornik Spain as long as possible, we invest in their professional and carbon-neutrally on Circleoffset P W Bisquiva (Private Label personal further development. We want to be perceived Printed with Saphira Eco recycled paper made from 100 % used paper, national / international) as an attractive employer to be able to attract interesting BRANDS which is certified with the EU Ecolabel (European candidates. As a family business, we care about the com- Ecolabel No.: FR / 11 / 003). patibility of family and career. We support social projects which have a close connection to Bahlsen, the tradition and the values of the company, as well as its locations. BAHLSEN WORLDWIDE BAHLSEN SUSTAINABILITY STRATEGY Editor Bahlsen GmbH & Co. KG Strategy and Dialogue Podbielskistrasse 11 We will continuously advance our sustainability strategy 30163 Hanover and continue to systemise our activities. We consider this Germany to be a continuous learning and change process for the Phone +49 (0) 511 / 960 0 entire company. Our aim is to maintain active dialogue with Fax +49 (0) 511 / 960 27 49 the stakeholders relevant for us. In this context, a high Email [email protected] degree of transparency is important to us. This refers to both our products, that is, origin, properties and quality, and requirements or services regarding our responsibility Editorial office / for the environment and society. Responsibility for the content Michael Klöfkorn Sustainability

Availability Environmental Protection This report is available in German and English. The focus of our environmental management is on improv- Both versions can be found on the Internet at: ing resource efficiency based on continuous improvement www.bahlsen.de AFFILIATED of all corporate processes. We continuously strive to HEADQUARTERS FACTORIES COMPANIES EXPORT COUNTRIES FOCUS MARKETS minimise the environmental stress generated by our busi- Produced environmentally friendly ness activities. This is documented in our environmental This sustainability report was produced entirely management system, which is valid for the entire company. with Saphira Eco products from Heidelberger Hanover Germany Germany 80 countries worldwide North America Druckmaschinen AG. The Saphira Eco line meets Barsinghausen Austria Middle East Berlin Belgium China even the strictest environmental criteria for con- Varel Great Britain carbon neutral sumable materials (paints, varnishes, chemicals Schneverdingen Italy natureOffice.com | DE-136-888926 Employees and Society print production and printing plates) in the print media industry. Luxembourg Poland Furthermore, the sustainability report was printed Skawina Poland In order to retain our employees at the company for Jawornik Spain as long as possible, we invest in their professional and carbon-neutrally on Circleoffset P W Bisquiva (Private Label personal further development. We want to be perceived Printed with Saphira Eco recycled paper made from 100 % used paper, national / international) as an attractive employer to be able to attract interesting BRANDS which is certified with the EU Ecolabel (European candidates. As a family business, we care about the com- Ecolabel No.: FR / 11 / 003). patibility of family and career. We support social projects which have a close connection to Bahlsen, the tradition and the values of the company, as well as its locations. Bahlsen GmbH & Co. KG Podbielskistrasse 11 30163 Hanover Germany www.bahlsen.com

Sustainability by tradition – lived responsibility at Bahlsen

Bahlsen Sustainability Report 2011 . 2012 . Bahlsen Sustainability2011 Report Sustainability Report 2011 . 2012 everything we can to achieve these goals. 01 Sustainability Report Table of contents

content

02 Interview with Werner M. Bahlsen 02 How sustainable is Bahlsen?

08 the Bahlsen Sustainability Strategy 08 Sustainability at Bahlsen 10 Declaration of Fundamental Values and Principles of Conduct 11 the sustainability strategy 11 establishment of the sustainability strategy within the organisation 12 outlook: Work continues

16 Product Responsibility 16 Great quality means great responsibility 16 Supplier and quality management 18 Wheat – transparency from the field to the shop 19 Palm oil – sought-after raw material from endangered regions 20 cocoa – improving living and working conditions on location 22 cage-free eggs 22 Feedback and information

26 environmental Protection 26 Environmental management at Bahlsen 26 establishment within the company 28 Energy 29 Packaging 29 Transports 30 Waste material and water 32 employee commitment

36 employees and Society 36 Employees and Society 38 Setting a good example – employees at Bahlsen 42 out of conviction: Our social commitment

44 Additional Information 44 Glossary 45 GRI index 47 About this report Sustainability Report 02 Interview

How sustainable is Bahlsen?

For the first sustainability report, four apprentices from different departments met with Werner M. Bahlsen, owner and Chairman of the Executive Board, to discuss sustainability at Bahlsen.

Johanna Muesse: Every person has their own definition of The eggs we use are all cage-free. With respect to palm oil sustainability. Mr Bahlsen, could you please briefly explain and cocoa, we are switching to certified products, because what sustainability means for Bahlsen? we know how problematic cultivation is in the respective countries. I travelled to West Africa in October 2012 to get an idea of the situation. I learnt there that it is not easy to con- vince the farmers of certifications.

Johanna Muesse: What do the farmers have against certificates? Werner M. Bahlsen: Cultivating cocoa there on 2.5 – 7.5 acres brings the farmers about 1.5 t per year – from which they have to feed their entire family. They use fertilisers, which are harmful in the long term but boost the yield in the short term. Convincing farmers of alternative cultivation methods is difficult, but we need to take up the challenge. These are the basics of agricultural development. That is why we are on location – but also in order to make sure that nobody profits from illegal child labour. Another aspect is the traceability of our raw materials. Julika Podracki is an apprentice in her second year of training to become an Industrial Business Management Assistant. That is one field. The second field is our consumption of resources here. At the Barsinghausen site, we have shown how Werner M. Bahlsen: For Bahlsen, sustainability is particu- it is possible to save energy and avoid waste with the aid larly important in three areas. The first area is raw materials. of state-of-the-art technology and innovative methods. This For instance, we exclusively use wheat flour from controlled gives sustainability an economic dimension. Gas and power contract farming. Many people do not know this, which is are getting more and more expensive, and we would be wise one of the reasons why we are putting together this sustain- to be as economical with these resources as possible. ability report. 02 03 Sustainability Report Interview

Werner M. Bahlsen, owner and Chairman of the Executive Board

Since 1999: Chairman of the Executive Board of Bahlsen GmbH & Co. KG

1978 – 1999: Member of the Executive Board

1975: Entry into the family business Bahlsen International Holding AG, Switzerland

The third field is our social commitment. My father taught me that, within their means, Internships in the baking industry in entrepreneurs should use part of their energy for the common good. This had a great England and the US impact on me and I still act accordingly today. For example, I founded the International Studies in Business Administration and School Hanover in cooperation with others, and still am Chairman of the Board there. Economics, Zurich There is not enough time to wait for the government to do something; you have to take Apprenticeship as a confectioner action yourself. Before Christmas, we traditionally sell Christmas biscuits and cakes on Opernplatz in Hanover. You are all invited to help ... and get cold feet!

Julika Podracki: Doesn’t sustainability cost a lot of money? Does it pay off for a business? Werner M. Bahlsen: One thing is clear: sustainability has its price. We as producers know that, and retail and consumers must understand this, too. Cocoa is a good example. It will still be a few years until we have switched to certified cocoa completely, because the amounts we require are not available in this form at the moment. This switch-over costs a lot of money. It is not very clever of big discounters to start offering certified products at giveaway prices. Consumers will not understand that sustainable quality has its price and has to be paid for. Sustainability is certainly not a programme for short-term profit maximisation. But I am absolutely convinced that sustainable concepts pay off in the long term.

Chris-Domenik Dummer: I would like to know why and for whom Bahlsen is putting together a sustainability report. Werner M. Bahlsen: We are already very active when it comes to sustainability – but we do not talk about it enough. We have to change that. We want to make the things we do more transparent and enable anyone who is interested access to our activities. Furthermore, NGOs, international trade, banks and consumers expect structured and professional reporting nowadays. Sustainability Report 04 Interview

However, we also find that it is not easy to compile data and Julika Podracki: What does Bahlsen do to prevent child facts from the different departments. We want to give our sus- labour on cocoa plantations? tainability programme a little more profile and communicate Werner M. Bahlsen: You are addressing an important aspect it more with the company so that we can all act in concert. there. Sustainability does not only refer to acting as environ- To achieve this, we created a new position for a Sustainability mentally friendly as possible; it also includes social aspects. Manager who will be responsible for these topics in the future It is well-known that particularly raw materials, such as palm together with a permanent Sustainability Team. oil or cocoa, are cultivated in the poorest regions in the world and that human rights are often not respected there. We Michael Dietz: Why doesn’t Bahlsen use organic object to abusive child labour and support industry-wide ap- raw materials? proaches for fighting abusive child labour. We want our raw Werner M. Bahlsen: You may know that I have a small com- materials to be as ethically unobjectionable as possible. That pany in Peine, called ‘La Viva Backforum’, which produces is why we have decided to work with RSPO-certified products organic products. The market for organic products is a niche for palm oil and UTZ-certified products for cocoa. Abusive market which constitutes 5 – 7 % of the German food retail child labour is mainly a symptom of poverty and not only a industry. The raw materials are much more expensive than problem of cocoa production. Abolishing child labour is only possible if the corporate sector, civil society and the public sector work together. We are prepared to make our contribution to this and will be on location regularly to see for ourselves what is happening.

Chris-Domenik Dummer: You hear a lot about global risks such as climate change. For example, heavy rain and droughts put harvests at risk; raw materials are getting scarcer all over the world. How does Bahlsen deal with this? Werner M. Bahlsen: Yes, that is right. In 2012, the wheat prices went up strongly as a consequence of the drought in the US. Our wheat comes from the Braunschweig area, but the prices are guided by the commodities exchange in Paris. In order to conquer such price fluctuations, at least in part, we rely on long-term cultivation contracts. We secure the harvests for our company in advance and the prices by means of financial Chris-Domenik Dummer is an apprentice in his second year of training to instruments. In this way, we have the physical amount of become a Metal Worker. raw materials on the one hand, and, on the other, we achieve a budget with which we can plan reliably. Of course, we like conventional raw materials. Certainly, the market will continue cooperating with long-term contractual partners; trust is an to grow and I consider it to be a good and interesting market. important component. This is the business aspect. Another But we are a market leader and produce products for the mass aspect encompasses that we must help alleviate the effects market; we cannot focus on niches. Nevertheless, we are mov- of climate change. We have set up our Agenda 20‘20, for ex- ing a little towards organic production, the boundaries between ample, which means that we plan to reduce core parameters the two product types are becoming blurred. We must prove such as power or natural gas consumption by 20 % by 2020. our sustainability with our raw materials. Consumers appreci- ate this and consider our Leibniz biscuit to be a trustworthy product which they not only grew up with but also can afford. 04 05 Sustainability Report Interview

Johanna Muesse: What opportunities do I have as an apprentice at Bahlsen? Do I have better working conditions here than at other companies? Werner M. Bahlsen: I would like to return this question to you. Why did you choose our company?

Johanna Muesse: Because I already liked it here when I came to Bahlsen for the tests and the job interview. The company has a good, friendly atmosphere; that is why I like working here. Werner M. Bahlsen: That is an incentive for us. We want Bahlsen to be a company which people like working for, not Michael Dietz is an apprentice in his first year of training to be a Machine only because of the pay. Today, companies compete for well- and Plant Operator specialising in Metal and Plastics Engineering. Johanna Muesse is an apprentice in her first year of training to be an Industrial qualified young people due to demographic change. You have Business Management Assistant. more options than any other generation had before. We aren’t as large as other companies; you really have great opportunities here if you know how to use them. Johanna Muesse: How sustainable are your actions in your private life, Mr Bahlsen? Michael Dietz: What do you generally do for young people Werner M. Bahlsen: You may know that the term ‘sustain- at Bahlsen? ability’ is quite old and originally comes from forestry. Here, Werner M. Bahlsen: We already have a focus on pupils and the aim is to take only so much wood from the forest that the students, for example, with the programme for retaining in- forest can continue to supply raw materials. I am an amateur terns, our university marketing programme or the start-up forester myself and take care of a small forest in the Heath. programme for trainees. Big opportunities are provided by Therefore, I am well familiar with this principle. We plant new the expansion of our activities abroad. If you have the cor- trees there and make sure that the forest can regenerate and responding foreign language skills, you can be part of these that there is a good mix in the area. exciting tasks – also in technical areas. Chris-Domenik Dummer: Will people still like eating cakes Julika Podracki: What can I do as an employee to make and biscuits in 50 years? Bahlsen even more sustainable? Werner M. Bahlsen: I very much hope so; otherwise, we Werner M. Bahlsen: First of all, you can save energy. I hope would be in trouble sometime – and you would have chosen you already learnt how that works in the context of Bahlsen’s the wrong company. Just think about it: Bahlsen has now bvp Energy Improvement Process. Second, we want our ap- nearly made it to its 125th anniversary with its biscuits, so prentices to become involved in the company as sustainability we must have done a few things right in the past. Of course, ambassadors. We want them to address the topic again and consumer needs change over time, and products have to again and to contribute to increasing people’s awareness for change accordingly. Bahlsen must be at the forefront there sustainability. All employees, no matter whether they work at and even promote change. I cannot say whether we will be the factory or at the headquarters, make decisions every day, eating the same biscuits in 50 years or whether there will be which have consequences for sustainability. We cannot pro- other ones by then. But we are continuously working on in- vide top-down regulations for everything; sustainability must novative concepts; we are well prepared. be established in the head of every employee. 06 07

SUSTAINABILITY STRATEGY We have grand plans

2011 Start of the sustainability project

Katharina Surrey (Integrated Demand Planning), Dr. Heinrich Heims (Corporate Quality Management, Certification and Audits), Dr. Anke Heier (Corporate Quality Management) Sustainability Report 08 The Bahlsen Sustainability Strategy

Bahlsen Executive Board: Michael Gawron, Dr. Christoph Hollemann, Werner M. Bahlsen, Sönke Renk Sustainability at Bahlsen

For Bahlsen, sustainability and profitability are no contradiction. The sense of responsibility and the aspiration of acting sustainably have been firmly established at Bahlsen since the company was founded.

In the context of globalisation, climate change, demographic change, and increasing scar- city and rising prices regarding important resources, the basic conditions of our economic activities are changing. That is why we needed to reconsider sustainability – and we have, encouraged by Werner M. Bahlsen. In 2011, we went through an intensive internal and external analysis and consulting process and put sustainability at Bahlsen to the test. One of the results was a strategic focus on the main fields of action (see graphic on the following page). A consulting company ensured that external stakeholder perspectives were included – first, of course, by means of its own expert opinion, then, by means of a benchmark analysis of the most important competitors. Furthermore, retail was asked about sustainability in the confectionery industry in general, and at Bahlsen and its competitors in particular.

Terms in bold print refer to an entry in the glossary on p. 44. 08 09 Sustainability Report The Bahlsen Sustainability Strategy

ESSENTIAL TOPICS

Energy and climate protection Palm oil

Cocoa Certification

Wheat

Working safety and health protection Traffic light labelling

Water Sugar content

Demographic change Diversity

The graphic shows a selection of the As a result of the internal workshops, topics with top priority. the relevance of different topics both for Bahlsen and for the stakeholders of the company was classified.

Priorities Bahlsen Priorities stakeholders

Sustainability Report 10 The Bahlsen Sustainability Strategy

Declaration of Fundamental Values and Principles of Conduct 1889 With the introduction of a Declaration of Fundamental Values and the connected Princi- Establishment of Hannoversche ples of Conduct (Corporate Compliance), Bahlsen established corporate principles. It is Cakes-Fabrik H. Bahlsen indispensable that all people belonging to the company are aware of their responsibility for the company and strictly observe the rules formulated in the Declaration of Funda- mental Values. The application of these rules for business and operational activities is expected from every employee of the company on every level of responsibility, without exception. The Principles of Conduct are available for download as a PDF file on our company website under ‘About us’.

Aside from the Principles of Conduct, which already address a large number of topics 1891 which are essential for achieving sustainability, there traditionally were and still are Leibniz-Keks is put on the market several projects in various departments of Bahlsen, which also express activity in terms of sustainability. One of the aims of the sustainability project was to integrate business activities into an overall strategy – and to ensure the balance between sustainable actions and profitable growth.

In 2000, the Bahlsen parent house in Podbielskistraße in Hanover becomes the group headquarters of the Bahlsen Group again. Extensive reconstruction work turns the listed building into an office building with state-of-the-art equipment – a groundbreaking combination of tradition and innovation, which characterises the entire group of companies. 10 11 Sustainability Report The Bahlsen Sustainability Strategy

The sustainability strategy An important result of the work in 2011 was the formulation of a generally valid sustainability strategy: The economic success of Bahlsen depends decisively on responsible acting in all areas of our business activity. Therefore, sustainability is an elementary component of our corporate strategy. Our work complies with legal regulations and provides transparency for our products and the underlying processes. Our aim is to provide active 1906 dialogue about sustainability with the stakeholders relevant for us. It is our goal to ABC Russisch Brot is introduced produce the highest possible product quality. Among other things, we purchase only selected raw materials and check our well-qualified suppliers strictly to achieve this. Our constant endeavour to improve our corporate processes leads to a noticeable 1911 reduction of environmental stress and to the saving of resources. In order to retain Parent building and factory construction; our employees at the company for as long as possible, we will continue to invest in ‘Cakes’ is changed into ‘Keks’ their professional and personal development and ensure the compatibility of family and career. We continue to be committed to non-profit projects with a close connection to our company.

Establishment of the sustainability strategy within the organisation Our aim is to systematically bring Bahlsen into line with the currently valid principles of sustainability. Accordingly, we started to network with relevant stakeholders in 2011 and have learnt a lot thanks to this exchange. We are very well prepared in many areas. In some areas, there still is a lot of work to be done. For all this, it is decisive that sustainability is supported by the owner Werner Michael Bahlsen and the entire Bahlsen Executive Board.

Bahlsen stands for innovative and top-quality products in “the sweet biscuits market. We will continue to be successful if we act on this basis in a market-oriented, responsible and sustainable manner. Patience, persistence and the pur- suance of long-term goals characterise our company and the relationship to our business and trade partners.”

Sönke Renk, Head of Sales / Marketing Bahlsen Sustainability Report 12 The Bahlsen Sustainability Strategy

For instance, this is documented in the fact that sustainability is established for the long 1916 term as part of the Bahlsen vision. The vision is supposed to express what we are striving Hermann Bahlsen plans his TET City – for in the long term and what we use as an orientation; it has a kind of ‘compass function’ a new factory with administration and the complete infrastructure of a city for the Executive Board and all employees.

In addition, Bahlsen has identified sustainability as an interdisciplinary guiding theme, 1922 which must be dealt with strategically. That is why we introduced a new position, the Sustainability Manager, in 2012. As a central contact person who reports directly to the Establishment of the Hermann Bahlsen Foundation Executive Board, the Sustainability Manager manages and monitors all internal and external measures. He coordinates cooperation and dialogue with the external stakeholders and develops the basis for making decisions in order to promote the topic.

Outlook: Work continues We will continue consistently on our path towards more sustainability and regard it as a permanent learning and change process for the company. In cooperation with experts from the Centre for Sustainable Corporate Leadership (ZNU) of Witten / Herdecke Uni- versity, Bahlsen will continue to develop its sustainability strategy and systemise the sustainability activities in the company.

STAKEHOLDER DIALOGUE

In the course of the sustainability project, Capital we checked the most important stakeholders Trade market by means of internal and external analyses. With the aid of the Centre for Sustainable NGOs Media Corporate Leadership of Witten / Herdecke University, we will continue to systemise the stakeholder dialogue in the years to come. We want to make our path towards more Employees Science sustainability and the connected conflicts of objectives transparent and are prepared to start an open and constructive dialogue with all relevant stakeholders.

Business Politics partners 12 13 Sustainability Report The Bahlsen Sustainability Strategy

As a first step, Bahlsen carried out the ZNU sustainability check in late 2012. Strengths and room for improvement were identified. The sustainability check consists of two parts. Part 1 refers to the ‘How’ of corporate leadership. In ten catego- ries, the strategic orientation and inner attitude have priority. Part 2 focuses on the topic-related ‘What’, that is, what does the company do with respect to essential topics from the fields of business, environment and society.

Based on the results of the sustainability check, our aim is a certification according to the ‘ZNU Standard More Sustainable Economic Management – Food’ for 2013 / 2014. The objective of this standard is to continue to improve transparency and measurability of our sustainability activities and to define goals for the further development of our sustainability strategy. With this standard, we implement a systematic superstruc- Sustainability check: The teams of ture, which is checked regularly by an external company. Bahlsen and the Centre for Sustainable Corporate Leadership put sustainability at Bahlsen to the test.

BAHLSEN COMPANY STRUCTURE AND Executive Board

Owner and Chairman of the Board Operations Finances & Administration Sales & Marketing Werner M. Bahlsen Dr. Christoph Hollemann Michael Gawron Sönke Renk

Corporate Integrated Demand Planning Purchasing Management Affiliated Companies Communication Engineering &Technology Legal Issues Export

Environment &Safety Controlling &IT Bisquiva Sustainability Corporate Quality Management Finances Corporate Marketing

Logistics Human Resources Market Research &Media Corporate

Development Production Bahlsen Insurance Brokering Research &Development 14 15

PRODUCT RESPONSIBILITY We bake sustainably

% 95 wheat from controlled contract farming

Annika Jantsch, Machine and Plant Operator from the Barsinghausen site Sustainability Report 16 Product Responsibility

Great quality means great responsibility

Food safety, protection from consumer fraud and adequate consumer information are governed by strict food laws in Germany and the European Union. As a brand manufacturer, Bahlsen has a much higher aspiration. We promise consumers incredible taste in addition to first-class quality.

To be able to keep this promise, Bahlsen puts the entire sup- For many years, we have been using wheat from controlled ply chain to the test and organises purchasing accordingly. We contract farming. We have been promoting the sustainable need to keep an eye on the quality of raw materials as well as cultivation of palm oil and cocoa by purchasing RSPO-certi- the price, but also on manufacturing conditions – we are aware fied palm oil since 2011 and UTZ-certified cocoa since 2012. of the fact that our responsibility for the people who produce By buying sustainable raw materials, we can influence the our raw materials and our responsibility for ensuring that production conditions in the producing countries. By selling these raw materials can be supplied in the future are two sides products with sustainable raw materials and by means of a of the same coin. Two thirds of the company’s raw material corresponding information policy, we offer orientation and purchasing volume are in the focus of sustainability. options for consumers.

Supplier and quality management The food standards in the EU are very high; however, we try to exceed these standards. One of our strengths is that we have a high degree of process competence and transfer this Food safety, quality, and know-how to every one of our production sites in Germany manufacturing processes and Poland. As a consequence, all our sites are certified ac- conforming to the law are certified at all Bahlsen cording to the strict requirements of the International Fea- production sites accord- tured Standard (Higher Level) and the British Retail Consor- ing to the IFS Higher Level tium (Grade A). standard. For the strict British retail sector, they are also certified according to the BRC Grade A standard. 16 17 Sustainability Report Product Responsibility

RAW MATERIALS IN THE FOCUS OF SUSTAINABILITY

Wheat Eggs

95 100 percent from controlled contract farming percent cage-free

Cocoa Palm oil

20 100 percent switch-over to 100 % percent switch-over to UTZ-certified cocoa ‘Mass Balance’ RSPO level ‘Mass Balance’ Objective until 2015: 50 % Objective until 2015: Complete switch-over Objective until 2020: 100 % to higher level ‘Segregated’

The four focus raw materials constitute two thirds of the company’s raw material purchasing volume. Sustainability Report 18 Product Responsibility

Our products are stored in a previously defined product-typ- ical temperature and humidity system so that we are able to identify declines in quality and take the corresponding steps to optimise recipes in due time. This is how we ensure that consumers buy a product which is safe and unobjectionable regarding quality until the best-before date.

Wheat – transparency from the field to the shop We know where our flour comes from. For our German production sites, we have been relying on Hedwigsburger Oker- mühle GmbH since the 1980s for purchasing our wheat flour. The company in the Wolfenbüttel district in Lower Saxony goes back to a water mill from the year 1318 and is located in the centre of one of the largest German wheat cultivation regions – it is only a short distance from the stalk to the mill. From 1983 to 1999, it was a subsidiary of the Bahlsen Group. We select our suppliers according to high standards. Bahlsen It is also due to our shared history that our business relation- exclusively works with suppliers who have a certified quality ship is very cooperative and transparent. Okermühle is the management system. In general, we are interested in long- only industrial mill in Germany which exclusively offers wheat term, trusting partnerships – however, the commodities mar- products from controlled contract farming – and has been do- ket sometimes requires cooperation with new suppliers. We ing so since 2003. 140 agricultural businesses certified by the find these with the aid of a thorough selection process. First, German Agricultural Society (Deutsche Landwirtschaftsgesell- the Purchasing department preselects a number of suppliers schaft – DLG) produce this wheat. before Quality Management takes over for the next test level. Depending on the raw material required and the respective In cooperation with DLG, Hedwigsburger Okermühle has safety regulations, potential suppliers must prove their suit- created the DLG testing system ‘Cereal Production Hedwigs- ability by means of certificates, questionnaires and informa- burger Okermühle’, which ensures continuous traceability tion submitted by themselves. and documentation from the mill to the field. The system ensures the highest degree of product safety and quality far Our products are branded goods. Their sensory properties – beyond the legal requirements. It comprises the definition, that is, everything which humans can smell, taste, feel and hear application and documentation of all criteria for good profes- – determine their success. This is why we check the quality of sional practice and hygiene in agriculture. our products with the aid of internal sensory tests and a trained panel. The tests regarding the best-before date (BBD) are very The levels controlled include production (including seeds), important in this context. storage, transport and operations in general. Documentation is obligatory for cultivation area, processing, fertilisation, plant protection products and harvesting measures, storage and transport to the mill. 18 19 Sustainability Report Product Responsibility

In this way, Okermühle can ensure complete traceability all the way back to the individual field. The advantages for customers and end consumers include transparency and the connected certainty that they are buying and eating only regional and unobjectionable wheat flour products.

In cooperation with DLG, Okermühle developed a sustainability standard in 2011 as the next step in the development. Adher- Jörg Vahlberg (CEO Hedwigsburger Okermühle), Christoph Kind (Head of ence to this standard is agreed bindingly between Okermühle Purchasing Management Bahlsen), Franziska Bennecke (Farmer, Rittergut Kissenbrück) and its farmers. In this way, the sustainable cultivation methods of the farmers, which have been applied for generations, can be measured, documented and communicated. It would not be feasible regarding the surface area to replace oil palms by annual oil plants such as sunflowers. Palm oil – sought-after raw material from endangered regions Oil palms are mainly cultivated on large plantations in Malay- The fat from the oil palm is used in many different ways in the sia and Indonesia; there are some smaller cultivation areas food industry. It provides excellent heat and oxidation stabil- in Colombia, Nigeria and Thailand. This shows the difficulties ity, which makes it the first choice in vegetable fats for bakery of expanding the cultivation of oil palms. Oil palms are culti- products, for example. vated in tropical regions; in uncontrolled farming, it is mainly jungles which fall victim to the need for large surfaces – often However, the global demand in this raw material is tremendous by means of slash-and-burn clearance. Not only does this lead (first place among all vegetable fats, followed by soya oil), and to the destruction of unique habitats for many endangered

the quantities demanded by the main buyers India, the EU and species but also to considerable CO2 emissions. China are growing continuously.

FROM THE FIELD TO BAHLSEN: COMPLETE TRACEABILITY

Controlled contract farming Hedwigsburger Okermühle

Seeds: Cultivation: Harvesting: Storage: Transport: Grinding: Delivery: Checks Checks and Checks and Checks and Checks and Checks and According to (GMO-free)* documentation documentation documentation documentation documentation Bahlsen quality standards

* See Glossary on p. 44 Sustainability Report 20 Product Responsibility

Roundtable on Sustainable Palm Oil

Cocoa – improving living and working conditions on location Unlike the cultivation of oil palms, cocoa is grown by small farmers – mainly in West Africa (Côte d'Ivoire alone delivers more than 30 % of the production worldwide), South East Asia and South America. In this way, more than 4 million t of unpro- cessed cocoa were produced by 5 million small farmers in 2011. The cocoa is grown on parcels of only a few acres and usually is the main source of income for the families. There are several problematic aspects: child labour is a serious ill, and children are often forced to work. Global supply is at risk continuously due to political instability, particularly in West Africa. In addition, bad infrastructure, deficient education and financial systems and, last but not least, overmature tree populations and lacking knowledge regarding professional cultivation methods Oil palm cause problems. Both companies and politics are faced with a task which will keep generations busy. In 2004, the Roundtable on Sustainable Palm Oil (RSPO) was established on the initiative of the WWF. The task of the multi- In view of these facts, Bahlsen pursues several approaches stakeholder initiative is to ensure cultivation and use of sus- for its cocoa strategy: on the one hand, we have been switch- tainable palm oil products by means of global standards. Gen- ing to UTZ-certified cocoa for chocolate-covered products tle cultivation methods shall be promoted and environmental since July 2012. By 2015, 50 % of the products, and by 2020, damage limited altogether. In the RSPO, stakeholders from 100 % of the products shall be switched to the UTZ certifica- seven sectors of the palm oil industry have formed an alliance: tion standard ‘Mass Balance’. On the other hand, we are producers, processors, manufacturers of consumer goods, engaged in the ‘Forum Sustainable Cocoa’ (Forum Nachhaltiger retail, banks and investors, environmental protection organisa- Kakao). The forum was initiated in June 2012 in cooperation tions as well as social and development aid organisations. with the German government, the Federal Association of the German Confectionery Industry (Bundesverband der Deutschen Bahlsen has been a member of the RSPO since 2010 and com- Süßwarenindustrie e. V. – BDSI), the food retail sector and civil pleted the switch-over from conventional to certified palm oil society. The aim of the multi-stakeholder initiative is the proof the ‘Mass Balance’ standard for the German and Polish sites motion of sustainably produced cocoa. Bahlsen is one of the in 2011. However, Bahlsen is only using this level as an interim founding members of the forum and when joining the forum solution. By the end of 2015, Bahlsen wants to complete the agreed ‘to make a measureable contribution to improving the switch-over for all pure palm fats which are processed directly living conditions of cocoa farmers and their families as well at our sites to the higher standard ‘Segregated’. This step makes as to fighting social ills and ecologically harmful practices in it much easier to trace back the raw material. We will continue cocoa cultivation by means of specific measures, which must to visit Malaysia and Indonesia regularly to see the situation be agreed in close cooperation with the representatives of the and the development in the cultivation areas for ourselves. cocoa-producing countries’. 20 21 Sustainability Report Product Responsibility

Many circumstances prevent a more profit- yielding cultivation of cocoa – starting with unclear land tenure and bad infrastructure. Our commitment directly on location aims at improving the situation in the producing regions for the long term.

Another very important component of our cocoa strategy comprises direct exchange with the actors in the cocoa industry in the producing countries. For years, we have been visiting cultivation areas in West Africa at regular intervals. This allowed us to establish relations to cooperatives and eventually get to know the situation of the farmers and their issues. Thanks to our activities, cooperation with a cooperative in Côte d'Ivoire developed in 2011. The members of this cooperative obtain direct financial support from Bahlsen. In this way, we were able to finance two HGVs to transport the cocoa from the plantations to a central collection point. Furthermore, we support the UTZ accreditation of the farmers on location by means of starting loans. In return, we guarantee buying up to 1,000 t of certified cocoa. In October 2012, Werner M. Bahlsen travelled to Côte d’Ivoire again with a team of executives to take a look at the conditions and progress on location.

In addition, there were further meetings and talks with parties involved in the cocoa industry – large multinational cocoa companies, local exporters, political institutions and cooperatives and their members. We saw how fragile the entire value-added chain is in the cocoa business. The fruit is not merely harvested but must be fermented and dried quickly. This process leaves room for a lot of errors, and loss rates of 30 % and more occur quite frequently. This happens particularly often in Côte d'Ivoire, since there are many intermediary trade levels there. Many companies and politicians in the country want to eliminate these intermediary levels. Sustainability Report 22 Product Responsibility

This not only increases the quality and amount of cocoa available, but farmers receive 1899 more of the proceeds than before – which is an essential factor for fighting child labour. Food analysis office in Mönchengladbach The farmers are informed about child labour at the so-called Farmfield Schools with the attests that Leibniz uses ‘top-quality aid of illustrations (many farmers cannot read). However, lacking structures and money materials’ still make it difficult to make a long-term and, particularly, a sustainable change. We will continue to expand our commitment in the cocoa-producing countries.

1950 Cage-free eggs Establishment of Bahlsen's own chemical Bahlsen has decided to be consistent and has determined that a balance between economi- and physical laboratories cally reasonable and ecologically responsible production must be maintained also when it comes to eggs. That is why Bahlsen only uses cage-free eggs for all its products.

Feedback and information Our quality management aspires to answer every consumer request quickly, comprehen- sively and personally. Our customer service can also answer questions with a health- 1999 related background, for example questions about allergens and dietary habits. Our aim With PiCK UP!, Bahlsen successfully enters is to answer every request within 3 – 5 days. If a request relates to a complaint due to the chocolate bar market quality defects, consumers will usually hear from us on the same day, and we ask them to send us the product within two weeks so that we can check the defect.

We have a holistic approach to quality. It does not only refer “to the products but also to our processes and our employees. Their specialised know-how and commitment contribute considerably to ensuring and continuously improving the high quality capability of Bahlsen. For us, product responsibility also encompasses complying with sustainable principles when it comes to our raw materials. Currently, this particularly relates to cocoa and palm oil.”

Dr. Ingo Mücke, Head of Corporate Quality Management and Food Law 22 23 Sustainability Report Product Responsibility

Consumer feedback is a highly important source of information for quality management. All requests are evaluated regularly to be able to derive improvement measures.

Consumer information plays an important role at Bahlsen – aside from the legally required specifications regarding ingredients such as allergenic ingredients, our product packages include voluntary nutrition facts and information about cross-contamination with allergens. If there is no information about allergens on a Bahlsen package, this 2012 means that no allergenic ingredients are processed at the same plant. This minimises 3rd place ‘Hallo Erde!’ Consumer Award the risk of cross-contamination, and consumers can enjoy the product without worries. From the end of August to mid-October 2012, consumers were asked to vote for the most convincing product in the context of an We strive for top quality. That is why we use ingredients which must meet special require- online vote of the ‘Hallo Erde!’ Consumer ments in addition. The exclusive use of non-hydrogenated vegetable fats for our products Award of REWE Group, the German Sustain- is the main element of our promise of quality. We do not use additives, such as preserva- ability Award, and the WELT Group. Many products were handed in and evaluated tives, antioxidants, artificial flavours or colours. Furthermore, we do not use animal raw by the independent Wuppertal Institute materials (except for milk, dairy products, eggs and honey), flavour enhancers, soy prod- according to sustainability criteria. Con- ucts (except for soy lecithin) or genetically manipulated ingredients (including additives sumers could then choose from the 34 best products from the food sector. and flavours). These propositions show the high quality standards of Bahlsen. Bahlsen came third in the vote in the Food category with its product ‘Leibniz Choco’! 24 25

ENVIRONMENTAL PROTECTION We set ourselves goals

% Agenda 20‘20: The Operations division under- takes20 to reduce the consumption of gas, power, water and waste material by 20 % per tonne produced by 2020. In addition, it pledges to

reduce CO2 emissions by 20 % per cubic metre of goods loaded. Values of 2010 serve as refer- ence values.

Sascha Hennig, Engineering Project Manager in the Construction and Infrastructure division Sustainability Report 26 Environmental Protection

The focus of Production and Logistics will continue to be on reducing emissions and the consumption of our most important resources – water, energy, gas, and raw materials. Bahlsen works hard to help save our environment and use its resources in an exemplary manner. Environmental management at Bahlsen

The focus of our environmental management is on improving resource efficiency based on the continuous optimisation of all corporate processes.

We take our responsibility for the environment very seriously. We continuously work on minimising the environmental stress generated by our business activities. In the following, we will be presenting the sustainability activities of the Operations division (Production, Logistics).

Establishment within the company The Bahlsen environmental management system is based on the ISO 14001 standard. We completed the certification successfully in 2012. With this certification, we under- take to improve our own environmental performance continuously. 27 Sustainability Report Environmental Protection

Bahlsen’s first Environmental Protection Officer took up work in 1989. Today we have the division ‘Environment & Safety’, which reports directly to the Head of Operations and informs about internal requirements as well as legal regulations regarding environmental protection, and ensures that these are observed. Additional tasks include training the Environmental Protection Officers at all locations, carrying out internal audits, as well as supporting the implementation of numerous environmental protection measures.

The employees in charge of the factories ensure that all regulations regarding environ- 1904 mentally friendly production and logistics are observed. Their tasks include identifying The air- and dust-proof TET package is put to market and documenting environment-related key figures.

A management manual providing guidelines for ecologically friendly production sum- marises all environmental activities of the division. Basic tasks of the Environment & 1905 The first assembly belt in Europe Safety division include the permanent development of Bahlsen’s environmental is put into operation at Bahlsen management system for sustainable production and the determination of corresponding implementation measures. 1933 Involving all employees of the company in sustainability is a basic component of the sus- The Express-Dose, a pound of tainability process. With the aid of the Bahlsen Improvement Process (Bahlsen Verbesse- biscuits and wafers in a tin, rungsprozess – bvp), numerous employee suggestions are processed and implemented. provides for an economic upturn In order to be up to date on the current state of scientific knowledge, intensive and continuous exchange takes place with various universities as well.

TYPES OF WASTE WHICH ARE MINIMISED DUE TO BVP MEASURES

Larger amounts are More materials, raw materials, Unnecessarily long Unnecessary, possibly produced than custom- areas, machines are available transport distances for also unergonomic move- ers actually require than are actually required products / materials ments by employees

Over Stocks Transport Movement production

Unused Waiting Over- Mistakes skills times processing

Ideas and know-how of Employees / machines Product properties are Defective goods, employees are not used wait for material for generated, which were not system failures, further processing requested by the customer misdeliveries, etc. Sustainability Report 28 Environmental Protection

The jury’s verdict Energy The continuous optimisation of energy efficiency is one of the company’s most impor- Consistent modernisation of a site tant tasks. When designing and modernising manufacturing processes, Bahlsen works with impressive cost reductions, while hard to use energy in an even more efficient way and reduce the energy requirements production continues of the manufacturing processes. Stringent implementation management with clearly determined objectives and The focus of the modernisation of the Bahlsen site Barsinghausen, which was begun in Clear measurement of results 2009, was on saving energy. One of the main goals was to equip the production site with Smart detail solutions due to consistent energy-efficient technology and implement modern energy supply. The construction of focus on the tanks for liquid raw materials and the modernisation of the silos alone resulted in the Added value while involving all employees elimination of several process steps and a considerable reduction of energy consumption.

Optimisation of HR requirements for With the same objective, the outdated steam generator system was replaced by a system packaging with low-cost solutions adjusted to the current requirements of the factory, which reduced natural gas con-

sumption by 600,000 kWh per year. Altogether, the same amount of CO2 emissions that 7,000 trees could absorb in a whole year was saved in 2010 thanks to the energetic improvements at the Barsinghausen site. Today, the site consumes 21 % less power than five years ago. Natural gas consumption has gone down by 32 % compared to the year 2000.

The Bahlsen site Barsinghausen won the award in the category ‘Excellent Site Development’ of the competition ‘Factory of the Year 2011 – Global Excellence in Operations’. The renowned competition is Germany’s toughest benchmark for the processing industry. Awards are presented for top perform ances by producing companies all over Europe. 28 29 Sustainability Report Environmental Protection

At the Bahlsen site Skawina in Poland, a quarter of the entire From material selection to processing and the finished packag- energy requirement is covered by environmentally friendly ing: Bahlsen makes sure that every work step is environmen- district heat, which is produced with considerably reduced tally friendly. This includes the reduction of packaging material

CO2 emissions. In addition, the condensate is used to preheat – while maintaining product protection. For instance, the paper the heating water, which can result in annual savings of about volume required was reduced by 15 % by optimising the pack- 112 MWh of energy. aging design of an entire bakery product range. Altogether, the use of corrugated cardboard was reduced by about 5 % in By means of reduced consumption, for example by adjusting the last few years. the room temperature in the halls, switching off warehouse air conditioning from October until April or avoiding idle times Bahlsen is also active in material research. By reducing the for machines, large amounts of electricity and gas are saved. material thickness of plastic films used for sealing to maintain the freshness and taste of the products by 0.05 mm alone, By lowering the flow temperature of the boiler by 20° C, gas several tonnes of valuable raw materials are saved per year. consumption went down by 8 %. The energy-efficient and climate-friendly measures also include the insulation of pipes, the All packaging materials from Bahlsen are 100 % recyclable and equipment of halls with thermal insulation and the replacement labelled with the ecolabel ‘Der Grüne Punkt’ (The Green Dot). of old industrial glazing by light metal structures with thermal By disposing of the packaging in an appropriate way, Bahlsen and sun protection glazing. customers also contribute to environmental protection.

Packaging Transports The packaging of Bahlsen products plays an essential role for In order for our products to be fresh and top-quality when they quality, freshness and product presentation. It protects the reach consumers, Bahlsen provides short storage periods for products and ensures that every bakery product reaches the raw materials, fast processing of raw materials and fast ship- customer in its usual good quality. ping of the finished products. This requires well-planned logistics – while acting as environmentally friendly as possible.

With bvp Energy and ISO 14001, we made energy efficiency “a matter for all employees. The many ideas provided and the collective careful utilisation of energy in everyday operations help us save considerable amounts of energy. In this way, we generate motivating competition within the company with respect to energy efficiency.”

Dirk Haffke, Head of Environment & Safety Sustainability Report 30 Environmental Protection

In the past few years, numerous measures were implemented To continuously advance constant improvement and become for minimising the environmental impacts connected to goods even more environmentally friendly in delivering Bahlsen prod- movement. The particular focus was on intelligent transport ucts, Bahlsen additionally carries out regular benchmarking planning and route optimisation. We strive for an HGV capacity with other logistics businesses. In this way, optimisation po- utilisation of 100 % when coordinating delivery orders. Trans- tential can be identified and industry trends can be adopted. porting pallets by stacking them on two storeys is particularly environmentally friendly, since large quantities of goods can Waste material and water be loaded in this way. The pallet height of 1.2 m produced by Dealing with waste material responsibly is a particularly im- Bahlsen corresponds to European pallet loading height category portant aspect of our sustainability principles. We know that 1 (EU 1) and ensures the best possible HGV capacity utilisation. recycling materials is more sustainable than burning or depos- iting them. That is why the company’s entire waste is sepa- Simpler measures, such as directly returning empty pallets on rated carefully at our locations into recyclable groups such as inward- and outward-bound journeys, also increase HGV cap cardboard, plastic, metal scraps, etc. to be able to return them acity utilisation. Furthermore, Bahlsen strongly promotes direct to the materials cycle. Thus, the waste material accumulated at loading so that the finished products can be shipped directly to the factories is almost entirely recycled. the customer without being transferred at distribution centres before final shipping. However, our activities do not focus on reducing waste but on avoiding waste – for waste which is not produced does not The goods are stored in a very compact way thanks to the have to be disposed of. The minimisation of scrap rates is one roller pallet system at the company's own warehouses, which of our most important goals. saves cooling energy. HGV transport between the factory and the warehouse becomes very energy-efficient due to the In addition, we have changed quite a few processes at our roller pallet system; it is carried out without forklifts and only sites to using refillable containers. The Bahlsen site in Berlin, requires little time for loading and unloading. which reduced scraps by 27 % in the past five years, is our pioneer when it comes to avoiding waste. Furthermore, our When selecting the best-suited logistics partners, the energy just-in-time production ensures that no waste in the form of efficiency of their vehicle fleets is a very important criterion. excess raw materials, finished products or packaging devel- In logistics, nearly 100 % of transport is carried out by HGVs ops. Everything is produced exclusively just in time and with which already meet the Euro 5 standard and guarantee less top quality at the request of the customer; excess goods are exhaust emissions. not produced.

The requirements which Bahlsen imposes on its partners apply also to the company itself. In order to be able to meet and promote these further, internal transports are checked critically at regular intervals for areas of ecological improvement. By inte- grating packaging material warehouses which were previously located outside the company grounds into the Barsinghausen and Varel sites, the company saves 75,000 transport kilometres per year. 30 31 Sustainability Report Environmental Protection

REDUCTION OF ENERGY CONSUMPTION BETWEEN 2010 AND 2012

– 9.9 – 5.5 – 12.3

percent of power percent of natural gas percent of water between 2010 and 2012 between 2010 and 2012 between 2010 and 2012 2010: 477, 2011: 434, 2012: 430 kWh / t 2010: 943, 2011: 882, 2012: 891 kWh / t 2010: 2.44, 2011: 2.12, 2012: 2.14 cbm / t

– 33.7 – 7.3

percent of residual waste percent of CO2 between 2010 and 2012 between 2010 and 2012 1 2010: 6.79, 2011: 4.26, 2012: 4.50 kg / t 2010: 9.4, 2011: 9.3, 2012: 8.7 kg / cbm

1 CO2 emissions relate to Bahlsen logistics in Germany. The figures for residual waste, water, natural gas and power relate to the three Bahlsen factories in Germany (excl. Schneverdingen). Sustainability Report 32 Environmental Protection

At our site in Varel, a number of pragmatic solutions were developed. For instance, a 1939 complex heat recovery system using an exhaust vapour condenser was installed for the Establishment of an area for designing jam cookers. This reduced energy consumption by 20 %. In addition, diverse lighting opti- and producing Bahlsen’s own machines misation measures were taken, and the separation of residual waste was improved.

As a food producer, Bahlsen bears special responsibility, which we take very seriously. 1959 Food is not thrown away at our company. Products which do not meet our high quality Barsinghausen site: most advanced standards are either sold at a low price at our own factory shops as so-called ‘Bruch- food production site in Europe Keks’ (broken biscuits) or go into recycling as residues.

Regarding our aim for the sustainable use of water, we focus on the reduction of fresh water consumption as well as the minimisation of the waste water we produce. In the past years, we have been quite successful in both areas. By changing the water cooling system of the steel belts from discharge water cooling to recirculating cooling, water consumption at the Varel site was reduced by 33 % in 2010 compared to 2005. The 2011 systems at the Skawina site will be changed in 2012. First Energy Forum in Barsinghausen, the factory of the year; launch of bvp Energy It is not only the use of modern technology, such as automatic sensors for water taps, water-saving shower heads and the installation of dosing dispensers for cleaning agents, which helps avoid unnecessary water consumption, but also the employees’ commitment. Particularly when cleaning, Bahlsen employees have an eye on the careful use of water resources, yet without violating our high hygiene standards in the process.

Employee commitment Environmentally friendly energy-saving production in particular requires the commitment of all employees. Every employee is asked to use resources responsibly in every-day work. Every lamp or machine which is switched off after use helps save energy. Many energy-saving measures at the production sites can be ascribed to the initiative of employees – after all, they are suited best for identifying room for improvement since they are experts in the field of their working environment. Cooperation in the context of the Bahlsen Improvement Process (bvp) and at bvp Energy workshops has led to effective saving measures. Making employees aware of the issues and involving them will be a decisive success factor for achieving the sustainability objectives of Bahlsen. 32 33 Sustainability Report Environmental Protection

When selecting the best-suited logistics partners, the energy efficiency of their vehicle fleets is a very important criterion. In logistics, nearly 100 % of transport is completed by HGVs which already meet the Euro 5 standard and guarantee less exhaust emissions.

Networks and forums for climate protection Energy efficiency – ambitious goals In cooperation with energydesign braunschweig GmbH, a spin- By 2020, the company plans to reduce the amount of energy off from the Institute for Building Services Engineering and used by another 20 % per tonne of biscuits produced. Further-

Solar Technology of the Technical University Braunschweig, more, CO2 emissions per cubic metre of goods loaded shall be Bahlsen encourages networking and exchange among experts reduced by 20 %. in the field of climate protection and energy efficiency. In 2011, we initiated the first Energy Forum. This event aims at getting Ecological sustainability plays an essential role in the devel- together experts from the fields of research and practical ex- opment of a holistic sustainability strategy for Bahlsen. The perience (from the industry, building planning and operation, company has taken the first steps and has already been quite building automation and software development) to discuss successful on its way to sustainable production. This is why topics more intensively. The Energy Forum 2012 focused on the Bahlsen will continue to set itself ambitious ecological goals, topic of ‘Energy-saving measures for production sites which and why the company pursues them persistently. In some developed over time’. In addition, the Barsinghausen site is production areas, there still is fairly evident savings potential active in the Barsinghausen Climate Forum. These networks are which will help achieve these goals step by step. of great help for promoting the exchange of experiences and for generating and exchanging knowledge and new ideas. The focus of Production and Logistics will continue to be on the reduction of emissions and the consumption of our most important resources – water, energy, gas, and raw materials. Bahlsen continues to work hard to help save our environment and use its resources in an exemplary manner.

Incorporating the Operations division’s sustainability strategy into the company-wide strategy of the Bahlsen Group is an essential step. 34 35

EMPLOYEES AND SOCIETY We stick together

2,454employees

Tino Reyser (bvp Location Coordinator at the Barsinghausen site), Tim Stelter (apprentice training to become a Machine and Plant Operator in Metal and Plastics Engineering), Hülya Tatli and Asiye Kara (Machine Operators) Sustainability Report 36 Employees and Society

The parent-child office is open to all employees of Bahlsen GmbH & Co. KG who are working at the Hanover site. It can be used if employees suddenly have to take care of their children, for example because their day care centre is closed or their child minder has become ill.

Employees and Society

When Hermann Bahlsen founded his company in 1889, he was a pioneer in various fields. This held true particularly for his pursuit of innovation and quality, which, in combination with his social commitment and his cultural patronage, established a company philosophy which be- came a Bahlsen tradition with the aid of all the following generations. Hermann Bahlsen not only set standards with this company – his actions also influenced economy and society as a whole. 36 37 Sustainability Report Employees and Society

Our employees still profit from this pioneering spirit today: they have a broad range of exciting tasks at their disposal, with considerable freedom to design their work. They work independently and obtain further training options tailored to their requirements. In our last employee survey, 93 % of the people interviewed confirmed that they enjoyed working for Bahlsen. This is partly due to department-spanning work in project teams and flat hierarchies – but also due to our company parties, the fundraising biscuit sale before Christmas, which many employees participate in as volunteers, and many other things. Thanks to flexible working time models, Bahlsen employees have the possibility of reconciling their job with their family life. This may be one of the reasons why at Bahlsen every third executive position is filled by female employees.

As one of the first companies in the confectionery sector, we started in 2002 to make systematic process improvements. The Bahlsen Improvement Process (bvp) combines tried and tested tools and methods for process improvement, which are adjusted to the requirements of Bahlsen. Most of these tools come from the Japanese Kaizen philosophy and the American Six Sigma method. Systematic employee training is an essential component of the bvp. It takes place throughout all hierarchical levels and is advanced continuously. Since 2011, training comprises the three possible levels of Yellow Belt, Green Belt and Black Belt. The higher the level, the more comprehensive the process improvement competence. All areas in the company profit from this. Up to now, 194 employees have been trained to be Yellow Belts, 20 employees are Green Belts and two employees are Black Belts.

AGE STRUCTURE, EMPLOYMENT CONTRACTS

65 % commercial employees 94.8 % permanent contracts 47 % over 45

41 % 31 – 45

26 % 9 % 5.2 % 12 % employees employees with temporary contracts 18 – 30 negotiated salary Personnel structure Personnel structure according to Age structure according to contract types temporary and permanent contracts Bahlsen Group

The proportion of temporary employees measured against the core workforce is 2 % on average. This proportion is a little higher in the commercial area. Sustainability Report 38 Employees and Society

Furthermore, the Bahlsen Improvement Process and the employee suggestion system are 1899 instruments which allow all employees to get involved in the company actively with their Loyalty bonus for long years of employ- ideas. In the context of the bvp process, 2,061 of the 3,007 ideas handed in were implement; company health insurance funds mented in 2011. In 2012, 2,525 ideas were handed in, and 1,907 were implemented.

Setting a good example – employees at Bahlsen 1911 We are faced with great challenges in the field of human resources. People in Germany Diverse welfare facilities (company doctor, are getting older and older; companies are faced with an increasing number of employ- washing rooms, showers, bathing rooms, dining rooms, etc.) ees over 50 and a decrease in employees under 30. This is called an age-centred internal age pyramid. We have also been experiencing this at our company. Most of our employ- 1912 ees are 45 or older. Bahlsen issues its own company news The shortage of skilled workers, which is already an issue today, is one of the results of paper: ‘Leibniz-Blätter’ demographic change. In order to address this problem, we have to use the potential of the employees available more strongly than before – and continuous effort is required to continue to get the best university graduates interested in working for Bahlsen. A Demography Management department was established to ensure that Bahlsen does not have any disadvantages from demographic change now or in the future. This department aims at minimising the capacity and productivity risks connected with demographic change and at sustainably securing future personnel requirements in due time. Five fields of action were identified altogether, in which the Demography Management becomes active (see graphic on the following page).

Bahlsen is a founding member of the registered association ZUKUNFTINC., an initiative of market leaders in Hanover. What all member companies have in common is that they are market leaders in their segment and have their headquarters in the Hanover region. The network is an immensely attractive platform for pupils, students and professionals – and therefore for possible Bahlsen employees. By means of only one interface, it offers comprehensive information as well as job and training offers from the market-leading companies participating. In this way, potential applicants can get into contact with Bahlsen directly in an uncomplicated way.

We often find new employees via our apprentice and intern pool – young people can play an important part in the company from the very beginning, taking responsibility and see- ing themselves as employees working in a large team. This is what we want to promote. Therefore, we offer a programme for internal networking and a stay-in-touch programme to ensure that former employees can maintain contact to the company after their training or internship has ended. If they then decide to work for Bahlsen, they are supported intensively from the very beginning. With the programmes our talent management offers, such as the Junior Council ( Juniorenkreis), the Start-up Programme, the Bahlsen Development Programme (BDP) and the Training & Qualification Programme, we ensure that our young talents are integrated and supported optimally according to their areas of interest and talents. In 2012, we had 34 apprentices, 18 interns and 6 trainees. 38 39 Sustainability Report Employees and Society

FIELDS OF ACTION AND MEASURES OF DEMOGRAPHY MANAGEMENT AT BAHLSEN

Employer branding Compatibility of family and career Health management

Establishment of an employer brand External employee counselling Health Steering Committee Communication of employer messages and family service Reduced fees for fitness and health internally / externally Parent-child office measures (cooperation with Hansefit) Redesign of job homepage Tailor-made solutions in the event of Annual health days (at all locations) and job advertisements sickness, emergencies, care time Back pain prevention Flexibility thanks to option programme on location of working from home Workshops on health-related topics Family-friendly design of working times (expansion of part-time work, flexibilisation / flexitime, revision of shift working models)

Qualification / Know-how transfer Personnel marketing

Skilled-worker qualification – Operations / Securing ‘Stay in Touch’ Programme (objective of of experience-based knowledge by compiling manuals retaining interns and apprentices in the company) Training, qualification, promotion of young talents Azubi-Besten-Programm (highflyer apprentice programme) Forums for passing on knowledge (‘Bahlsen Wissen Kompakt’) Cooperation with associations Talks about the future 3 years prior to retirement and organisations (Market Team, Zuckerhut) Internal Bahlsen Mentoring Programme Presence at university marketing events and conventions (in Germany and abroad) Coaching and helpful advice Cooperation with associations and organisations (Enactus, Long-term succession planning for key positions in the company ZUKUNFTINC.) and universities (Leibniz University Hanover, etc.) Bahlsen Leadership Programme Selection of media suited to the target group: extension of social media use (e.g. XING)

Planned measures Implemented measures

Sustainability Report 40 Employees and Society

The high quality of training at Bahlsen shows again and again in our apprentices’ excel- 1919 lent results. Sven Gastorf (year 2011) and Nina Weiß (year 2012) completed their training Bahlsen has two women to be Specialists in Confectionery Engineering at the Barsinghausen site with honours as on the Executive Board the best in their profession at the Chamber of Industry and Commerce of Hanover (IHK Hannover) and as state champions in Lower Saxony. Nils Engler (year 2012) was able to complete his training to be a Machine Operator at the Barsinghausen site as the best 1939 – 1945 in his profession at IHK Hannover. The team of commercial apprentices passed their Good treatment of foreign workers examinations in 2011 with an excellent average of 1.6 (marks ranging from 1 = excellent protects Bahlsen from looting to 6 = insufficient).

Since 2012, Bahlsen has been granting four scholarships for German universities: two for 1960 Leibniz University, Hanover, one for the University of Applied Sciences and Arts, Hanover, As the first company in Germany, and one for the University of Hohenheim. The scholarship programme was established to Bahlsen employs Gastarbeiter support talented, high-performance students at universities in Germany, irrespective of (guest workers) their income.

Under the motto ‘We make family and career compatible’, Bahlsen offers employees many options for qualified part-time work. Furthermore, our flexitime model provides a lot of flexibility. In the event that employees suddenly have no-one to take care of their children, we offer young parents a parent-child office at our headquarters. Our cooperation with ‘CarpeDiem24 – Coaching & Counselling’ is brand new. Colleagues have told us again and again that there is a need for support in everyday family- and health-related issues. CarpeDiem advises employees and members of the Management with respect to professional, personal, health- and family-related issues – free of charge and anony- mously. Counselling is not only provided for our employees but also for all family members living in the household with them.

THE CANTEEN AT THE BAHLSEN HEADQUARTERS: SUSTAINABILITY IS TASTY!

Motivation for developing health-conscious dietary habits Vegetarian Lunch as a meeting point and food is tasty! place for rest and relaxation

Fish from 70 % ecological and sustainable fishing fair-trade food

Meat from No convenience the region food whatsoever

Use of seasonal and Careful use regional products of resources 40 41 Sustainability Report Employees and Society

Bahlsen supports its employees in maintaining their produc- Employees of all ages can profit from the diverse programmes tivity and health independently and sustainably until their re- for health promotion and working safety. Beginning with the tirement. It is in our own interest to keep our older employees Barsinghausen and Varel sites, the company has been dealing healthy and fit. Their know-how and experience are priceless with corporate health management systematically in all divi- for us – we ensure that our teams provide a well-balanced age sions for a good ten years. This ensures that health protection mixture, for example, so that this know-how and experience and working safety measures are always up to date. does not get lost. Starting three years prior to retirement, we offer employees talks about their future. In these talks, among Topic areas in corporate health management are developed others, measures for transferring experience and know-how and initiated by the Health Task Forces at the individual loca- can be determined. tions. In addition to ergonomics, topics such as stress, communication or back pain prevention are addressed. In the Our annual employee performance and development reviews context of health days, which take place at regular intervals, serve to help employees develop professionally and person- employees at the factories and the headquarters in Hanover ally. In addition, the review gives employees the opportunity have the possibility of obtaining information on current topic to talk to their superior about how happy they are with their areas. Furthermore, Bahlsen offers all its employees low-cost work and give their superior personal feedback. memberships for gyms and swimming pools in cooperation

Bahlsen was the first company in Germany to implement the principles of sustainabil ity in employee catering. The team of the Bahlsen canteen at the headquarters in Hanover has been working according to sustainable principles for more than 15 years. Every day, regional, sustainably produced or organic food is prepared. Sustainability Report 42 Employees and Society

Prof. Dr hab. Zbigniew Dresler (Representative of the University Rector Fundraising biscuit sale on Opernplatz in Hanover – a great success also for Organisation and Development), Marek Scholz (centre) (Operations in 2012. We will continue this tradition in the future. The bags of biscuits Manager Bahlsen Poland), Scott Brankin (right) (Country Manager Poland) sold for a good cause have become a Christmas tradition in Hanover.

with Hansefit. This makes it easier for employees to be pro- Out of conviction: Our social commitment active and keep fit. Since 2012, there has been a Health Task We are socially involved and support projects which have Force for all locations, which shall promote exchange and a close connection to Bahlsen, the company’s tradition and the development of activities relating to corporate health values, as well as its locations. We regard society as the en- management. vironment in which we work and operate. This explains why we mainly act as a regional sponsor. For instance, everyone In 2011, Bahlsen set up the Bahlsen Academy in Poland in in Hanover knows our ‘legendary’ fundraising biscuit sale be- cooperation with Cracow University of Economics. All people fore Christmas. involved can benefit from this cooperation: thanks to the cre- ativeness of the students, the company obtains fresh input and Every year in December, Bahlsen employees sell several tonnes comes into contact with potential applicants. By dealing with of Christmas biscuits and cakes for a good cause. All proceeds company-related topics, students obtain more detailed insights from the biscuit sale are donated to social projects, for exam- into business practices. ple an association which supports hungry children called ‘Hilfe für hungernde Kinder’ from Hanover, whom we have been supporting regularly for the past eight years. The top priority of Hilfe für hungernde Kinder is fast, unbureaucratic capacity building and social integration – an approach which we believe to be well worth supporting.

Bahlsen is a supporter of the student network Enactus. This way, we support their social entrepreneurship projects. En- actus brings together students, scientists and executives with 42 43 Sustainability Report Employees and Society

the aim of creating a better and more sustainable world. As a supporter of the network, we finance the activities of Enactus Germany and support the teams and their project work. 1988 First Christmas biscuit sale on Opernplatz Aside from our varied regional commitment, we decided in 2013 to start a partnership with the pupil initiative Plant for the Planet. Plant for the Planet is an international pupil movement, which fights against the consequences of the climate crisis in an unconven- 2012 tional way. The movement originated from a school presentation of the then 9-year-old Special award for ergonomics and Felix Finkbeiner about the climate crisis. Inspired by Wangari Maathai, the Kenyan envi- occupational safety for the Barsing ronmental activist and Nobel Peace Prize laureate who planted 30 million trees in Africa, hausen site from the occupational insurance association he presented the vision at the end of his talk that children could plant one million trees

in every country of the world to compensate for CO2 emissions. Since then, Plant for the Planet has become a global pupil movement. Today, the aim of the approximately 100,000 children participating is to plant 1 trillion trees worldwide.

As a partner of Plant for the Planet, Bahlsen wants to support the movement; the company is planning to establish Plant for the Planet Academies at many locations. In 2013, two academies shall be completed in Hanover. Pupils from 8 to 14 years of age are invited to undergo training at these academies to become ‘Ambassadors for Climate Justice’ and become part of this movement. At the academies, they listen to exciting presentations 2013 on climate protection and the climate crisis, they learn how to give talks themselves and Partner of Plant-for-the-Planet how to plant trees and make the first specific plans for their own planting activities and projects. Taking part in the academy is free. Bahlsen has already paid for the children to be able to take part. You can find more information about the initiative at: www.plant-for- the-planet.org

As we are a family business, we believe it is essential to con- “tinue to systematically expand our programme for making career and family compatible. Often tailor-made solutions are required, for example in the event of sickness, emergencies, care time, etc. We want to live up to this challenge and the expectations of our employees and applicants.”

Carola Prenissl, Head of HR Development Sustainability Report 44 Additional Information

Glossary

Controlled contract farming Non-hydrogenated fats do This means that complete not go through this process; traceability and documenta- therefore, they only contain tion of the wheat from the very small amounts of trans mill to the field is provided. fatty acids. Allergen Substance which ISO 14001 This international UTZ-certified Relates to one causes hypersensitivity reac- standard describes the re- of the largest sustainability tions of the immune system. Cross-contamination Direct quirements of a functioning programmes and quality An allergen is an antigen; or indirect unintended im- environmental management seals for growing coffee, tea the hypersensitivity reaction porting of allergenic sub- system. and cocoa. With its market- caused by it is called an stances. Cross-contamina- driven sustainability pro- tion in a product can occur allergic reaction. Panel A type of survey: at gramme, it supports agricul- if, for example, allergenic constant conditions (same ture in the cocoa-producing ingredients are processed test persons, conditions, countries by training cocoa on the same production methods, questions), data farmers in the fields of busi- system. Raw materials can is acquired over a longer ness administration, envi- also contain small amounts period of time. ronmental management and of allergens unintentionally Mass Balance System (MB) social working conditions. bvp = Bahlsen Improvement and cause cross-contamina- For goods of certification de- Process; measures for con- tion in the finished product gree MB (e.g. cocoa or palm tinuous process optimisation. indirectly. oil), a sustainably produced bvp is based on the Japanese product cannot be separated management method Kaizen. physically from a conven- It focuses on measures for tionally produced product if RSPO An organisation devel- avoiding waste and increas- sustainably produced prod- oped in 2004 on the initiative ZNU (Centre for Sustain- ing efficiency – for example, ucts are mixed with conven- of the WWF. Association of able Corporate Leader- tionally produced products. the ‘5S formula’, which is Diversity is used predomin companies from the entire ship of Witten / Herdecke short for the German words That is why ‘administrative’ value-added chain of palm University) ZNU is one of antly in the sense of ‘using traceability is required for for: sort out, place, clean, social diversity construct oil, environmental protection the leading independent standardise, self-discipline. the MB system (see also associations and other NGOs platforms for more sustain- ively’. The aim of diversity ‘Segregated System’). It Every employee is trained is to achieve a productive with the aim of fighting for ability in the food industry. regularly regarding bvp. To must be considered that the sustainable, environmentally The ZNU partners are atmosphere at the company, certified products sold must save energy, bvp Energy was to prevent social discrimin friendly palm oil production. mostly medium-sized family developed. never exceed the quantity of businesses which deal in- ation of minorities and im- the certified products bought prove equal opportunities. tensively with the topic of – therefore, a Mass Balance sustainability and seek this must be kept, which must be exchange specifically. updated continuously.

Segregated System Physical Cage-free Chickens who pro- separation of sustainable duce cage-free eggs are kept GMO (Genetically Modified products from conventional exclusively in henhouses. The Organism) The German law products (e.g. cocoa or animals can come into con- on governing genetic engin palm oil). Two completely tact with each other. Lowest eering (GenTG) provides Non-hydrogenated fats separate commodity flows standard of species-appro- the following definition: A When fats are hardened, develop. Advantage: the priate husbandry according GMO is an organism, with liquid vegetable oils are commodity can be traced to the German regulations the exception of humans, converted into solid fats at back to the field. regarding laying hens. whose genetic material room temperature, which has been changed in a way modifies their technological Stakeholders Everyone who which does not appear properties. This is achieved has a justified interest in under natural conditions by by hydrogenating double the business activities of a cross-breeding or natural bonds of the fatty acids. In company or is affected or recombination. this process, trans-fatty ac- influenced by this company. ids develop as a by-product, which are harmful to health. 44 45 Sustainability Report Additional Information

GRI index

Profile Reported Page

1. Strategy and analysis 1.1 Statement from the Executive Board 02 – 05

2. Organisational profile 2.1 Name of the organisation 49 2.2 Primary brands, products or services 48 2.3 Structure of the organisation Fold-out / fold-in, 48 2.4 Headquarters Fold-out / fold-in, 48 2.5 Countries in which the company operates Fold-out / fold-in, 48 2.6 Ownership structure – 2.7 Markets Fold-out / fold-in, 48 2.8 Size of the organisation Bookmark, 48 2.9 Significant changes – 2.10 Awards 23, 28, 37, 43

3. Report parameters 3.1 Reporting period 47 3.2 Last report 47 3.3 Reporting cycle 47 3.4 Contact persons 49 3.5 Process for defining the scope of the report 47 3.6 Boundary of the report Fold-out / fold-in, 48 3.7 Special limitations – 3.8 Basis for reporting on joint ventures – 3.10 Effects of restatement of information 47 3.11 Significant changes 47 3.12 GRI content index 45 – 46

4. Governance, commitments and engagement 4.1 Governance structure of the organisation 13 4.2 Chairman of the highest governance body 13 4.3 Independent members of the highest governance body who are not members of the Executive Board – 4.4 Mechanisms for minority interests – 4.14 Overview of stakeholders 12 4.15 Basis for selecting stakeholders 12

GRI met GRI met in part No input provided Irrelevant for Bahlsen Sustainability Report 46 Additional Information

Performance indicators Reported Page

FP Sourcing (Food Processing Sector Supplement) FP1 Suppliers compliant with the sourcing policy 16 – 18 FP2 Purchasing volume according to sustainable standards 17 – 22

EC Economy EC1 Direct economic value generated and distributed Bookmark EN Ecology EN3 Direct energy consumption listed according to primary energy source 31 EN4 Indirect energy consumption listed according to primary energy source 31 EN5 Energy saved 28, 30 – 33 EN8 Total water withdrawal listed according to source 31 EN 22 Total weight of waste 30 – 32

LA Employees LA1 Total workforce Bookmark LA8 Programme regarding serious diseases 41 LA13 Diversity in the organisation 37 SO Society 38, 42 – 43 PR Product Responsibility FP5 Food safety management system 16 FP8 Product information / specification of ingredients beyond legal requirements 23

GRI met GRI met in part No input provided Irrelevant for Bahlsen 46 47 Sustainability Report Additional Information

About this report

This first sustainability report of Bahlsen GmbH & Co. KG is The topics of this report were identified by means of an analy- regarded as the beginning of regular and transparent com- sis and consulting process lasting about one year, in which we munication of all company efforts to achieve economic, eco relied on the expertise and support of an external consulting logical and social sustainability. It is based on the principles company. Both the perspective of all departments of Bahlsen of the Global Reporting Initiative (GRI 3). It is planned to is- and the perspective of external stakeholders – particularly the sue sustainability reports every two years. Although we can- trade – were considered. Of course, topics which are broadly not yet achieve GRI Level C in this report, we decided to pub- discussed in public, such as cocoa and palm oil, were consid lish a GRI index nevertheless. It offers its readers an overview ered as well. The reporting data regarding environmental per- of the most important topics and the status of our reporting. formance was gathered at the Bahlsen locations in Germany, Our aim for the future is more extensive reporting. Since it since this is where the main production and logistics activities is our first sustainability report, no statements can be made of the Bahlsen Group take place. Other data, for example re- about significant changes compared to earlier reports. garding employees, is based on the entire company including subsidiaries abroad. The report states which part of the Bahlsen Group is relevant for the respective data presented. The reporting period comprises the business years 2011 and 2012. Sustainability Report 48 Additional Information

Our brand portfolio

Umbrella brand Bahlsen: Bahlsen stands (Austria), Krakuski (Poland) and Brandt (Germany), complete for high quality and special enjoyment the diverse portfolio, which is produced at five European loca- when it comes to biscuits, cakes and seasonal bakery products. tions and exported to more than 80 countries. Lifestyle and eating enjoyment are subject to constant change. It is the big- gest strength of Bahlsen’s innovative power to identify changes and trends. This is a challenge which is met with intensive re- Umbrella brand Leibniz: Leibniz is the tasty biscuit snack for in-between meals – search work and state-of-the-art analysis methods. Work which for the whole family. is performed by specialists with a lot of experience and know- how – and the creativity this requires.

High standards due to high quality expectations Brandt: Brandt’s biscuit brand was taken over by Bahlsen in 1995 (biscuit types: The focus of all our business divisions is on quality. The quality Hobbits, Müslikekse, Dinkel-Hafer-Taler). philosophy of Bahlsen is based on the company’s high standards and its self-conception as a brand manufacturer. High quality standards start with the selection of raw materials and Austria Kornland: Kornland is the best- continue with processing, packaging and delivery. At Bahlsen, known muesli bar in Austria. Six of the quality does not only refer to its products but also to its em- top ten muesli bars in Austria are made by Kornland. ployees: it is only with the aid of their know-how and commitment that we can offer our customers the product experience they desire on a consistently high level. What is good can become even better. Bahlsen does not only apply this standard Poland Krakuski: As one of the best-known brands in Poland, Krakuski supplements to its products but to all the processes within the company. the portfolio of national brands. From purchasing, production and logistics to sales: the key phrase which characterises Bahlsen’s entrepreneurial aspiration is continuous improvement.

Bahlsen: Indulgence and lust for life We make life sweeter Bakery products from Bahlsen stand for indulgence and lust As a supplier of high-quality biscuits and cakes, Bahlsen has for life. Generation after generation has associated a sweet social responsibility and acts according to fundamental business biscuit treat with the name of Bahlsen – and that since 1889. principles and a general code of conduct. These are sum- The unique taste, the consistently high quality and the trust in marised in Bahlsen’s Corporate Compliance. Bahlsen’s Com- the company’s products have made Bahlsen what it is today: pliance not only defines obligations for the Executive Board a successful and modern family business. and all employees but also determines the basis for cooperation between Bahlsen and its customers and suppliers. With Market leader in Germany its will to be successful, its passion for all its activities, and its With the two umbrella brands, Bahlsen and Leibniz, Bahlsen is portfolio of strong brands, Bahlsen will continue to meet cus- the market leader in Germany and one of the leading suppli- tomer requirements and provide new ideas in the future – true ers of sweet biscuits in Europe. The national brands, Kornland to its mission: ‘We make life sweeter.’ BAHLSEN WORLDWIDE BAHLSEN SUSTAINABILITY STRATEGY Editor Bahlsen GmbH & Co. KG Strategy and Dialogue Podbielskistrasse 11 We will continuously advance our sustainability strategy 30163 Hanover and continue to systemise our activities. We consider this Germany to be a continuous learning and change process for the Phone +49 (0) 511 / 960 0 entire company. Our aim is to maintain active dialogue with Fax +49 (0) 511 / 960 27 49 the stakeholders relevant for us. In this context, a high Email [email protected] degree of transparency is important to us. This refers to both our products, that is, origin, properties and quality, Editorial office / and requirements or services regarding our responsibility Responsibility for the content for the environment and society. Michael Klöfkorn Sustainability

Availability Environmental Protection This report is available in German and English. The focus of our environmental management is on improv- Both versions can be found on the Internet at: ing resource efficiency based on continuous improvement www.bahlsen.de of all corporate processes. We continuously strive to AFFILIATED HEADQUARTERS FACTORIES COMPANIES EXPORT COUNTRIES FOCUS MARKETS minimise the environmental stress generated by our busi- Produced environmentally friendly ness activities. This is documented in our environmental This sustainability report was produced entirely management system, which is valid for the entire company. with Saphira Eco products from Heidelberger Hanover Germany Germany 80 countries worldwide North America Druckmaschinen AG. The Saphira Eco line meets Barsinghausen Austria Middle East Berlin Belgium China even the strictest environmental criteria for con- Varel Great Britain Employees and Society carbon neutral sumable materials (paints, varnishes, chemicals Schneverdingen Italy natureOffice.com | DE-136-888926 print production and printing plates) in the print media industry. Luxembourg In order to retain our employees at the company for Poland Furthermore, the sustainability report was printed Skawina Poland as long as possible, we invest in their professional and Spain Jawornik personal further development. We want to be perceived carbon-neutrally on Circleoffset P W Bisquiva (private label Printed with Saphira Eco recycled paper made from 100 % used paper, national / international) as an attractive employer to be able to attract interesting BRANDS candidates. As a family business, we care about the com- which is certified with the EU Ecolabel (European patibility of family and career. We support social projects Ecolabel No.: FR / 11 / 003). which have a close connection to Bahlsen, the tradition and the values of the company, as well as its locations. Bahlsen GmbH & Co. KG Podbielskistrasse 11 30163 Hanover Germany www.bahlsen.com

Sustainability by tradition – lived responsibility at Bahlsen

Bahlsen Sustainability Report 2011 . 2012 . Bahlsen Sustainability2011 Report Sustainability Report 2011 . 2012 everything we can to achieve these goals.