Sustainability Report 2019 of the PHW Group

PHW Group 2019 Sustainability Report

Paul-Heinz and Peter Wesjohann

“Sustainability is a state of mind, a constant factor that is functioning through the full spectrum of our corporate activities.”

PHW Group 2019 Sustainability Report 3 4 PHW Group 2019 Sustainability Report Table of contents

Facts, figures and targets 06

Interview Peter Wesjohann 08

The company, targets, stakeholder dialogue

1.1 About this report 12 1 1.2 Stakeholder survey 14

Alternative protein sources 2.1 Interview Marcus Keitzer 18 2 2.2 Strategic partnerships 20 2.3 Green Meadows 22

Animal welfare and contracted farmers 3.1 Continual improvement in animal welfare 26 3 3.2 Diverse concepts for rearing 29

Environment and production

4.1 CO2 footprint 32 4 4.2 Producing on a 100% climate neutral basis 33 4.3 Savings in the area of packaging 35 4.4 Logistics 36 4.5 Preserving biodiversity 38

Raw materials and animal feed 5.1 Sustainable soy meal 42 5 5.2 Insect protein instead of soy 44

Social responsibility 6.1 Employee retention and promotion of young talent 48 6 6.2 Promotion of integration projects 51 6.3 Work of the foundation 52

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 5 Sustainability targets adjustment 2017

Until the end of 2018, 60 per cent of German production should come from an animal welfare concept. Current status: By the end of 2018 more than 60 per cent of the German production came from an animal welfare concept. Target achieved.

Until the end of 2018: Reduction in fuel consumption of the own fleet by five per cent. Current status: By the end of 2018 the PHW Group was able to achieve this goal. The PHW Group will continue to look for measures to further reduce fuel consumption.Target achieved.

31 Bavarian companies rear WIESENHOF Private Farm poultry. Ten more are in the planning stage until 2018. Current status: By the end of 2018, the PHW Group was able to increase the number of its Private Farm companies by a further ten. Target achieved.

Antibiotic-free in the barns: By the end of 2020, the antibiotic-free barns of WIESENHOF partner farmers are at 70 per cent, in 2017 it was around 65 per cent. Current status: Animal health has been improved in the past three years, so that the PHW Group is confident that the target of 2017 will be reached by the end of 2020.

By 2025: Use of 100 per cent green electricity in companies certified according to the ZNU standard. Current status: It is still a question of using energy efficiently and, for example, using conventional replace electricity with green electricity. The PHW Group continues to adhere to its target for 2025.

Facts and figures

To date, the PHW Group has Team players wanted: in 2019, presented their CO2 footprint around 30 apprentices for chicken meat production six successfully passed their exams. times. The most recent result available is from The PHW Group is regularly at 2017: a result of 2.2 kilograms of CO2 per kilo- trade fairs for apprenticeships and presents its gram of chicken meat (net carcass weight) was apprenticeships and dual study programmes. determined.

Since 2013, 34 sustainability The PHW Group has five audits have been carried out charging stations for successfully so far according to electric vehicles, each the ZNU Standard ‘Driving with one charging point. Sustainable Change’.

6 PHW Group 2019 Sustainability Report … and new targets from 2020

Animal welfare By the end of 2020, 90 per cent of German poultry production will comply with various animal welfare concepts.

Alternative proteins Expansion and intensification in production and utilisation of alternative protein sources.

Climate neutrality Continual participation in the initiative ‘ZNU goes Zero’. From 2020 onwards, the PHW Group will produce on a 100 per cent climate-neutral basis at its ZNU-certified production sites.

Raw materials and animal feed Exclusive use of sustainably grown soybean meal and no use of mineral phosphorus in at least 50 per cent of animal feed production by 2025.

Packaging Further reduction of plastic packaging and optimisation of its recyclability, at the same time considering absolute product safety.

Since 2019, the PHW Group By reducing the thickness of the

has saved 573 tons of copy paper, CO2 consumption was plastic. reduced by 14,518 kilograms compared to 2018. This corresponds to a saving of almost ten per cent.

Targeted use of alternative protein sources as a soy substitute (e.g. rapeseed, sunflowers, peas, field Company‘s own central beans and also, as soon as legally permitted, insect laboratory in the city of Lohne protein). In 2019, 47,000 samples were examined and about 240,000 analyses carried out. In addition, there were 200,000 microbiological analyses.

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 7 “We want to expand through diversity”

Peter Wesjohann, CEO of the PHW Group

Mr Wesjohann, this report goes under the name of give an example, in 2007, we began to comprehensively progress report. What goals have you reached since utilise slaughter by-products, by processing the poultry the last sustainability report in 2017? by-products into biofuel. More than 350 trucks in our Group and other haulage companies used our environ- Peter Wesjohann: We have improved in all areas mentally friendly fuel called Sp-Power. In our group of concerning sustainability. I would like to take the op- companies alone, this led to an annual saving of 30,000 portunity to pick out three outstanding themes: firstly, tons of CO2. Unfortunately in 2018, tax was applied to we have managed to increase the number of animals this form of biofuel, which consequently ruined the eco- stemming from German operations that comply with nomical efficiency. In the future politicians should begin animal welfare concepts to 80 per cent. Secondly, we to recognise the importance of fuel types that consid- have entered into a strategic partnership with the Enter- erably reduce the amount of CO2 emissions and for that ra Feed Corporation, who see the black soldier fly as a reason consequently rule out economic disadvantages future alternative protein source with which the amount as a result. of soy meal in poultry feed could be replaced or reduced to a minimum. Thirdly, and for me personally a major How will the diversity of foods on the market de- aspect, in addition to our core business of poultry meat velop and how is the PHW Group planning to act in production, we have made a breakthrough in our aim to response to the changes? produce alternative proteins and have proudly established a new business segment in this area. Peter Wesjohann: Meat consumption will change in the coming years. Plant-based alternatives will have How important a role do you think the key issue of an integral presence on the market in the future. In my sustainability will play in five years’ time? opinion the consumption of meat will continue, however, to play a major role. As in other product formats, a range Peter Wesjohann: Sustainability already plays a of products will doubtless exist next to one another. Our major role in all divisions of the company. It’s simply a target is to strengthen and confirm our profile as a sup- question of attitude, which influences entrepreneurial plier of high-quality protein products and concurrently planning and actions taken. Additionally, the social, develop new business fields accordingly. political and consumer-based demands, in the direction of sustainable business methods employed, will increase We want to forge ahead with the expansion of our core in the next five years. In the future, the challenge will be business not only through further development of our to combine sustainability and economic efficiency. To conventional production but also through intensification

8 PHW Group 2019 Sustainability Report “We want to expand through diversity”

of our animal welfare concept and simultaneous devel- What sustainability targets are your company opment in the project area of alternative protein source striving to achieve? fabricatin. Peter Wesjohann: In our commitment to sustainability We don’t see plant-based food industry growth as a the current orientation is focused on the climate- threat to our existing core business but as an opportu- neutral efficiency of our WIESENHOF production sites.

nity for the future. Irrespective of which product we talk We want to reduce the amount of CO2 emissions in all about, the sustainability of any product will definitely be areas of our business to a minimum, in order to (where more emphasised and more transparency demanded economically and physically possible), produce on a from the consumer in general in the next five years. climate-neutral basis. The main focus is our participation in the voluntary initiative ‘ZNU goes Zero’: as of 1st Meat alternatives are increasingly gaining in im- January 2020, all of our ZNU-approved production sites portance and popularity. How has this trend come for chicken, turkey and sausage have been producing on about? a 100 per cent climate neutral basis. At the same time, we have also set ourselves a target for our core business Peter Wesjohann: The world’s increasing demand for that by the end of 2020 90 per cent of production in the protein cannot be produced using conventional meat German sector should stem out of operations comply- production methods. Therefore, it is absolutely neces- ing with animal welfare concepts. With the founding sary for us to bring convincing, plant-based alternatives of Green Meadows an important milestone has been onto the market. Due to animal welfare, climate and/ reached and consequently our alternative protein sector or health reasons the modern consumer is seeking business segment has been reinforced, enabling us to vegetarian products. However, the purchase will only continue striving towards our ultimate goal. be repeated if the product matched their expectations the first time. The targeted audience for our plant- based products is not only the consumers living a vegan lifestyle, but also the flexible consumer looking for an appropriate substitute.

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 9 0 The company, targets, 1stakeholder dialogue

PHW Group 2019 Sustainability Report 11 1. 1 The company, targets, stakeholder dialogue | About this report

PHW Group key figures

The core business of the PHW Group, with its German HOF brand name as well as the preceding animal feed core brand WIESENHOF, is the production and marketing process. Taken into account is the newly established of high-quality poultry specialities. The new business business division involving alternative sources of pro- sector alternative protein sources was successfully tein. Both of the sustainability reports are available on founded in 2018. In conjunction with this business, the the following Internet sites: www.phw-gruppe.de and PHW Group has entered into various partnerships, for www.wiesenhof-online.de. example with SuperMeat, BEYOND MEAT®, Eat JUST Inc. and Gathered Foods (Good Catch). On a long-term basis Report parameters the Lower Saxony family-owned business is planning The contents of the present report are aligned in com- to establish itself as a supplier of high-quality protein pliance with the Global Reporting Initiative, but do not products and expand in supposedly competing busi- claim to match the standard required at this present ness fields simultaneously. Next to these two business moment in time. The PHW Group promotes and recog- sectors exists another division: health. The PHW Group nises the sustainability targets of the United Nations holds more than 35 subsidiaries, employs more than (SDGs) and refers to these standards within this report. 7,000 staff in Europe and generated a turnover of 2.69 Continual reporting through the publication of sustain- billion euros in 2018/2019. This progress report concen- ability reports has been initiated. The release of the third trates on the first sustainability report concerning the sustainability report is planned for 2023. poultry specialities business division with the WIESEN-

PHW Group locations in Germany

Cuxhaven Laage Rechterfeld Wildeshausen Dannenberg Cloppenburg Eberswalde Lohne Haldensleben Bad Belzig Diepholz/ Mühlen Minden Königs Wusterhausen Reuden-Süd Möckern Rietberg Zerbst

Hadamar

Regenstauf Bogen

Straubing The business activities of the PHW Group with theit brand WIESENHOF take place primarily in Germany. Red marked are the six certified companies according to the ZNU standard.

12 PHW Group 2019 Sustainability Report Statistical report framework Review period At the end of 2019, Oldenburger Geflügelspeziailtäten, In the current report, the contents and information based in Lohne, was approved according to the ZNU presented include data and figures relating primarily to Standard ‘Driving Sustainable Change’. Through this the review period 2018/2019 and the first quarter of approval, all German WIESENHOF produc- 2020. In addition, relevant information has been taken tion sites for the production of chicken, into consideration from previous years. To improve the turkey and sausage products fulfil the neces- readability, throughout the entire report the feminine sary ZNU requirements. These are as follows: form has not been applied. With regard to the use of the masculine form, the masculine form used in this report • WIESENHOF Geflügelwurst (Rietberg) incorporates the feminine form. • Geestland Putenspezialitäten (Wildeshausen) • Donautal Geflügelspezialitäten (Bogen) • Anhaltinische Geflügelspezialitäten (Möckern) • Märkische Geflügelhof-Spezialitäten (Königs Wuster- Contact hausen) PHW Group • Oldenburger Geflügelspezialitäten (Lohne) LOHMANN & Co. AKTIENGESELLSCHAFT The ZNU Standard was developed in the Centre for Sustainability management: Sustainable Business Management based at the faculty Katrin Metschies, Sandra Hebbeln of management and economics of Witten/Herdecke and Leonie Wegener University. This standard provides the basis for the intro- Paul-Wesjohann-Strasse 45 duction of an integrated system in the area of sustain- 49429 Visbek ability management in food science-related branches. In Germany addition, these six ZNU-approved sites are also enrolled [email protected] in the voluntary climate initiative ‘ZNU goes Zero’ and producing as of 1st January 2020 on a 100 per cent climate neutral basis.

The PHW Group defines the following fields of activity in which the sustainability pillars (economy, ecology and social engagement) are contained: animal welfare and contracted partner farmers, environment and production, raw materials and feed, as well as social responsibility. The company is to concentrate on these themes, systematically develop them and set measurable goals for the future.

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 13 1. 2 The company, targets, stakeholder dialogue | Stakeholder survey

A total of 81 per cent of the stakeholders view PHW/WIESENHOF as a company with a strong commitment to a sustainable concept

The PHW Group is constantly in close dialogue with di- A total of 81 per cent of the interviewed partners view verse internal and external stakeholder groups. In order PHW/WIESENHOF as a company with a clear commit- to get a comprehensive impression of the actual per- ment to a sustainable concept in all business areas. ception in relation to the group’s sustainability aspects, Similarly positive is the assessment regarding the cred- the PHW Group initiated and carried out a structured, ibility of the company. Respondents state that efforts to all-embracing stakeholder survey. The key questions and address sustainability issues are reflected in consumer issues to be tackled were: how do the stakeholders see products of the PHW Group. In all, 80 per cent rate the the efforts and activities of PHW/WIESENHOF in their company’s way of communication and dialogue orienta- commitment to sustainability? And do the activities un- tion positively. dertaken and the corresponding communication match the stakeholders’ expectations? In answer to the question of whether PHW/WIESENHOF fulfils the participants’ expectations with regard to a The survey took place in September and October 2019, well-managed stakeholder group dialogue, 29 of those implemented by fjol GmbH (business consulting) for interviewed, among them NGOs, suppliers and custom- sustainability. Suppliers, farmers, NGOs, trading ers, answered with a definite ‘yes’. partners, regional stakeholders, coopera- tion partners in sport, as well as work council “We are proud of the results of the stakeholder survey. representatives and trainees were interviewed in It demonstrates that communication with our stakehold- writing. The participants comprised of 17 external and ers is greatly appreciated. It is essential for our 19 internal stakeholders. corporate development to take into consid-

The company image and profile as seen through the eyes of the various stakeholders

Is the PHW Group a company committed to sustainability? 1 Does not apply at all 1 2 Does not apply Employed trainees (n = 16) 1 1 Suppliers (n = 6) Applies sometimes NGOs (n = 4) 3 1 1 1 1 Applies Representative works council (n = 3) 9 2 3 1 2 Applies often Collaboration partner sport (n = 3) 3 Mayor / Admin. District (n = 1) Applies completely Customer – trade (n = 1) 3 Food service industry (n = 1) No answer Vechta University (n = 1) 0 2 4 6 8 10 12 14 16 18

14 PHW Group 2019 Sustainability Report For PHW Group sustainability simply stands for future viability, with the aim of ensuring future generations can enjoy a healthy environment

How can the 17 goals for sustainable development (SDGs) of the United Nations be successfully and successively applied in the agricultural and nutritional branches? Is there room for innovative potential? How can companies be supported and guided during the practical implementation of the preset targets? These questions and many others should be discussed and answers found within the realms of the SDGs Labs’ project ‘Making the SDGs our business’, which is principally contained in the European Union’s ERASMUS+- Knowledge Alliances programme. WIESENHOF is a project partner alongside universities and companies from Germany, Austria, Italy and Portugal. “This project deals with the potential challenges contained in the 17 SDGs that are to be plausibly identified in respect to complex, global strategies and these processes accordingly determined in order to develop new and profitable sustainable business areas for the future. With help from research and economic experience, the targets and aims should be broken down into everyday commercial practices that are comprehensible and applicable overall for the businesses concerned”, explains Dr Ingo Stryck, Managing Director of Marketing for WIESENHOF. In the first stage, the individual goals and objectives should be translated into functionality for each of the business areas/departments concerned. The next stage is the promotion of educational training modules so that innovative learning processes for the entire value-adding chain can be developed. “For the PHW Group sustainability simply stands for future viability. We see ourselves as a sparring partner with the SDGs Labs’ project ‘Making the SDGs our business’, with a lot of practical experience to share. And last but not least, through our ZNU partnership we have sent a clear signal and firmly established sustainability in six production sites”, states Dr Ingo Stryck.

eration the unbiased views from outside and the most important factor for them. The potential for to put these into practice in our daily oper- action regarding a reduction in packaging and a ations”, states Mrs Katrin Metschies, Sustainability reduction in greenhouse gas emission levels was also Manager and Head of Publicity. relevant to the participating partners. All in all, our aims and targets match the needs and requirements of the The survey also brought to light the fact that the ques- interviewed parties. tioned partners find improvements in animal welfare as

Fulfilment of expectations in the stakeholder dialogue

Are your expectations fulfilled in the stakeholder dialogue area by the PHW Group/WIESENHOF?

Employed trainees (n = 16) Yes Suppliers (n = 6) NGOs (n = 4) Representative works council (n = 3)

Collaboration partner sport (n = 3) Mayor / Admin. District (n = 1) No Customer – trade (n = 1) Food service industry (n = 1) Vechta University (n = 1) 0 1 2 3 4 5 6 7 8 9 10 11 12

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 15

Alternative 2protein sources

PHW Group 2019 Sustainability Report 17 2. 1 Alternative protein sources | Interview Marcus Keitzer

able to complement their innovations with our business know-how, as well as with our decade-long experience of the European marketplace. We are therefore able to extensively promote the new generation of plant-based products and make them successful as soon as possible and at the same time manifest their existence. Along- Mr Keitzer, how does a traditional meat producer side our targets with business partners, we are focusing become involved in the alternative protein sources on a third pillar: our strategic investments and shares in business area? companies such as Super Meat who create meat out of cell cultures, Gathered Foods (Good Catch) who were Marcus Keitzer: : By 2050, an estimated ten billion involved with the introduction of the most recent vegan people will be living on earth. The amount of protein fish product on the US market, Bugfoundation who required will explode. It’s obvious that this addition- create burgers based on insects and Redefine Meat who al requirement will never be able to be satisfied with are currently developing a 3D printing process for plant- the present, conventional type of meat production. It based products. The fourth pillar concerns the found- is therefore of the utmost importance, in addition to ing of our joint venture Green Meadows between The other tasks, for us to bring a convincing, plant-based LIVEKINDLY Company (previously Foods United Inc.) and alternative onto the market. We want to develop into an the PHW Group. All in all, we are still in the early stages established supplier of high-quality protein products and of these various business ideas and have occupied our- in addition to our core business of classical poultry meat selves in the meantime with several innovative products production, we plan to expand into the area of alterna- such as alternatives for meat, fish and eggs and the tive protein. introduction of insects as an alternative to conventional proteins and aim to continue to expand in all of these How do you plan to build up this new business line? directions.

Marcus Keitzer: : Our strategic approach is based on It’s extremely unusual for a conventional meat pro- a four-pillar model: the first pillar was the introduction ducer to have a committee for alternative protein of our own vegan product line, which we brought onto sources. How often do you have to explain this fact? the market back in 2015. A leading protein component in this product line is for example taken from peas. Due Marcus Keitzer: Very often! This is something com- to the sustainability aspect, we want, as far as possible, pletely new in our branch. I don’t know, at least within to avoid soy in our product range. The second pillar is Europe, of another company where alternative protein is based on distribution partnerships established within embedded at board level. It makes me proud to be able the last two years. With their help we plan to expand to say that about us. One can see that as a family-owned the plant-based protein business area. For example, business we enjoy a wide open approach to new ideas. our partners BEYOND MEAT® and Eat JUST Inc. have This reflects how seriously and genuinely we are com- developed a fantastic plant-based egg product. We are mitted to all of our planned ventures.

18 PHW Group 2019 Sustainability Report “We want to develop to become a recognised supplier of high-quality conventional and alternative protein products” Marcus Keitzer, Board for Alternative Protein Sources, PHW Group

How do you assess the market for plant-based When one hears the name WIESENHOF in Germany, products? one associates the name first of all to intensive animal production and not to plants or vegetables. Marcus Keitzer: We are not solely focused on vegan How does that match the modern concept of young, niche products and want to also focus on the flexible innovative start-ups in the food tech scene who consumer who occasionally buys a meat alternative. In want to improve the world with vegan products? this category, the taste is the decisive factor. The new plant-based products offer a taste experience that is Marcus Keitzer: Very well. In the conversations I have very similar to the original product. The appearance, had with relevant partners I haven’t experienced this structure, eating experience and preparation are nearly ideological discussion. Of course they want to know what identical. That is what makes the purchase interesting we do and they don’t accept and approve everything, but for the flexible buyer, who sees the product as a meat there is no black-and-white thinking in this area. alternative. There is large market potential for this consumer category. In the USA, according to actual analyti- The food techs stand out with their convincing inno- cal studies 90 per cent of the consumers buying Beyond vation, frankness and a lot of money. Which values Burgers® in supermarkets are not vegan. According to do you bring to the partnership? IRI Symphony* a recent growth in meat substitute products was recorded: the sale of meat substitutes rose Marcus Keitzer: We bring what new businesses don’t in 2019 in comparison to 2018 by an amazing 25.3 per have: a decade of experience in production, logistics cent. (*Source: IRI Symphony, Meat substitute products January and distribution, as well as a deep understanding of the 2020.) European and German markets coupled with assured and proven quality management.

Mr Marcus Keitzer (outside right) together with Mr Seth Goldmann (second from the right), Executive Chairman from BEYOND MEAT®, during a press launch with Beyond Burger® presenting information to the business, daily and trade press at the INTERNORGA 2019 exhibition.

PHW Group 2019 Sustainability Report 19 2. 2 Alternative protein sources | Strategic partnerships

Expansion through diversity

The PHW Group has its own answer to the question the PHW Group is able to assist with their wide-ranging ‘How do we want to eat in the future?’ The core busi- business know-how and comprehensive knowledge of ness, the production of poultry specialities, should the European market. expand through advancements in the conventional business method as well as through the planned increase in production in line with animal welfare BEYOND MEAT® concepts. The PHW Group simultaneously plans to The California-based BEYOND MEAT®, (which is fi- build up the alternative protein sources business nanced, inter alia, from well-known investors and VIPs), segment and would like to use their established substitute animal protein with plant-based protein. They management scope as a food supplier in order to have already revolutionised the market with their major create and produce convincing supplementary product the Beyond Burger®. The Beyond Burger® is products. The strategic partners in the alternative one of the leading plant-based burgers with respect to protein area are introduced below. taste, appearance and consistency and to date no other burger in this category is as comparable to conventional beef burgers. Additionally, the Beyond Burger® is entirely SuperMeat made using non-GMO The Israeli start-up SuperMeat is involved with the pro- plants and is also duction of meat produced from cell cultures. Following a soy- and gluten-free. due diligence process, the PHW Group decided to work In April 2018, they with them and since the beginning of 2018, the start-up announced their introduction into the European market and the PHW Group have been working naming the PHW Group as their distribution partner. together in a strategic partnership. Ethan Brown, founder and CEO of BEYOND MEAT®, An important factor in the choice explains the beginning of the partnership: “Above all, the was the harmony between practice PHW Group’s specific experience in the production and and research elements: SuperMeat is development of convenience as well as vegan products striving to quickly introduce meat mix and the corresponding experience collected in user products such as chicken nuggets onto the market. The behaviour has inspired us.” research and development department want to introduce marketable products within three to five years. As well as financially supporting the SuperMeat project, Gathered Foods (Good Catch) The American company Gathered Foods develops and produces plant-based fish substitutes and has consequently filled a gap in the market with their products. The products are made The new PHW Group partner creates an eating up of plant-based protein including, for experience that is very near to the original product. example, pea protein isolate, soy protein isolate, chickpea flour, lentil protein, bean flour and faba protein, which offer a good, tasty alternative to conventional fish products. The PHW Group investment in the American company was announced in August 2018, not just as investors who can assist in all questions related to product develop-

20 PHW Group 2019 Sustainability Report ment on the European market but also to give advice Redefine Meat concerning the speedy success required for vegan fish The Israeli start-up creates vegan meat using a 3D print- products here. ing process. Founded in 2018, Redefine Meat has registered a patent for their developed technology, which reproduces the texture, taste and eating experience of Bugfoundation beef and other high-quality meat products. The compa- The start-up from the city of Osnabrück began with ny uses entirely plant-based the introduction of the first insect burger made out of ingredients. In September buffalo worms into the German market. In September 2019, the PHW Group began 2018, the PHW Group investment in the start-up was their business partnership made public and PHW was able to professionally assist with Redefine Meat particularly with the aim of optimis- and advise the Bugfoundation in ing future product development for the European market all business questions such as using time-honoured PHW business know-how. marketing, logistics and product development. PHW is thoroughly convinced that these new product categories, rich in sustainable and high-quality protein components and unsaturated fatty acids, will play a substantial role in the food market in the near future.

Eat JUST Inc. Eat JUST Inc., based in San Francisco, California, is on a mission to build a food system where everyone eats well. The company’s world-class team of scientists, re- searchers and Michelin starred chefs creates delicious, healthier and more sustainable products. The company’s plant-based JUST Egg product scrambles and tastes like eggs, and it has about the same amount of protein. But by making JUST Egg from plants, it has no cholesterol and uses 98% less water and 93% fewer greenhouse gases than conventional eggs. The PHW Group and Eat JUST Inc. became partners for European sales in February 2019.

The appearance, structure, eating experience and preparation of the second generation vegan products are comparable to the original products.

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 21 2. 3 Alternative protein sources | Green Meadows

PHW and the LIVEKINDLY Company found a joint venture – Green Meadows

The objective is to produce sustainable plant-based food Pioneers for a new broader spectrum for future in outstanding quality that is available for the mass mar- eating habits ket, whilst at the same time taking into consideration the “Our inspiration to found Green Meadows arose from limited global resources and diverse climate challenges: the intention to create a food base for the future: The LIVEKINDLY Company (prev. Foods United Inc.) was multi-faceted with as wide a variety of sustainable founded in 2019 with this philosophy in mind. The main products as possible. The ultimate goal is the perma- shareholder of The LIVEKINDLY Company is the Swiss- nently evolving consumer, who makes a decision to buy based Blue Horizon Corporation AG who have worldwide depending on individual preferences, such as health, operating funds, are renowned as investors in many affinity to sustainable production, social issues or simply established enterprises and specialise in plant-based due to a standpoint related to animal welfare – for what- food production sector investments. The LIVEKINDLY ever reason they decide to purchase, whether the food Company will expand quickly in the future to become a type chosen is completely plant-based or a part thereof. global platform for modern, attractive, plant-based food The target is to provide a comprehensive range of the and on their way to reaching this goal, they will invest newest generation of plant-based foods – something for in many companies that complement the complete everyone. That’s the reason why PHW recognise and use value-adding chain for the production of plant-based food the potential of new sources of protein. within their range – from the first stage including raw material procurement, through the production process To be as successful we connect The LIVEKINDLY Compa- and ultimately to marketing and distribution. This allows ny’s excellent expertise in selecting the most innovative for the speedy development of strong brands, high-qual- international start-ups with the assured quality concept ity standards and a comprehensive range for a market and distribution network of the mother company of beyond the niche products in the vegan and vegetarian Green Meadows, the PHW Group. Operating through business area. Thanks to our production technology and proven production and distribution know-how, we at delicate taste development, products like plant-based Green Meadows would like to bring our strengths to sausages or nuggets have become an attractive alterna- this partnership with The LIVEKINDLY Company for the tive for the flexible consumer too. entire European market, thus combining the wishes of retailers and consumers with the opportunities of future The LIVEKINDLY Company has developed the category innovations. By having a deep knowledge of further to include plant-based substitute products for the German and European market and our meat, fish and eggs through targeted investments in broad experience as a supplier of various inspiring brand names and are assisting the newest gen- high-quality protein products, and collabo- eration of plant-based nutritional products to become a rating with The LIVEKINDLY Company we are greater presence on the market and an attractive pricing a pioneer of a new nutritional diversity. This policy in a globally increasing market. As an integral partnership provides access to novel opportunities for component of this strategy, The LIVEKINDLY Company sustainable nutrition from plant-based products and is and the PHW Group have founded a joint venture, named committed to providing the world’s population with a fu- Green Meadows: this new company is to become the ture-proof diet. We support new food technologies made production, marketing and distribution sector of The in Germany and in Europe“,explains Marcus Keitzer, LIVEKINDLY Company for the entire European market. Board for Alternative Protein Sources at the PHW Group,

22 PHW Group 2019 Sustainability Report director of Green Meadows GmbH and member of the Board of The LIVEKINDLY Company.

Building a new site for Green Meadows production With the founding of Green Meadows, the PHW Group, based in Rechterfeld, created a completely new starting point concerning alternative sources of protein. The PHW Group, within the scope of asset deals, had already purchased the convenience division of Klaus GmbH & Co. KG, situated in Laage, Rostock in 2018. The company specialises in the production of convenience products. Since 2019, the production area for plant-based products has been structurally separated from the area for poultry meat production.

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 23

Animal welfare and 3contracted farmers

PHW Group 2019 Sustainability Report 25 3. 1 Animal welfare and contracted farmers | Continual improvement in animal welfare

purchase a product. This is the reason why the PHW Group, as the leading food producer, recognises and accepts the challenge in the animal welfare sector to offer diverse concepts. Approximately 1,000 self-employed partner farmers raise poultry in conventional systems as well as poultry for alternative animal welfare concepts, such as WIESENHOF Private Farm, Beter Leven, Gildehoen, Kip van Morgen and DONAUTAL Premium. The Animal Wel- fare Initiative (ITW) rounds this off. These concepts allow the consumer to make a conscious decision to choose a particular type of rearing concept.

Theile Funke, Geschäftsführer BWE-Brüterei Our Private Farm concept has developed well since Weser-Ems, ist seit 2008 bei der PHW-Gruppe und its launch in 2011: we began with 12 farming partners verantwortet den Bereich Tierwohl. and today 32 farmers raise our WIESENHOF Private Farm poultry, states Theile Funke, manager of BWE Brüterei Weser-Ems (hatchery). The Private Farm poultry Continual im- assortment will steadily expand and conventional farms will follow this trend. Sausage products have also been provement in included in the animal welfare portfolio since 2017. WIESENHOF was the first company to offer poultry cut animal welfare meats with the animal protection label ‘For more animal protection’ (first level), created by the German Animal Welfare Federation. “Just as in previous years, we will The subject of animal welfare is constantly an issue strive further to expand our Private Farm programme with a prominent media focus. The market for animal further. We as a company stand 100 per cent health and welfare products will continue to expand. A behind our animal welfare concept just as relative concept will only be accepted onto the market our contracting farmers do. It is clear, however, if it is plausible. In addition, the preferences of the that the speed and volume of this expansion will be consumer in general vary greatly and the price is a determined by demand and both our farmers and we sensitive but decisive factor in the ultimate decision to ourselves hope in the future that more consumers will

In 2015, the British animal protection society Compas- sion in World Farming (CIWF) awarded WIESENHOF with the Good Chicken Award for their Private Farm concept.

26 PHW Group 2019 Sustainability Report make a conscious decision to choose products raised In order to remain informed and always stay up-to- through animal welfare concepts, explains Theile Funke. date in R&D, the PHW Group has taken part in various research projects over the years. In 2019, the EsRAM The slaughter statistics illustrate that the PHW Group project (Development for the reduction of antibiotic is working in the right direction: in 2018, approximately resistant pathogen in feeder poultry) was initiated by the 3.75 million slaughtered poultry per week originated Central Organisation for German Poultry Management from multiple animal welfare programmes. By the end of (Zentralverband der Deutschen Geflügelwirtschaft e.V.). 2019, the percentage generated in German production The repeated, crucial question for many projects carried sites had increased to 80 per cent. The next step out was ‘How can we succeed, in the best possible way, planned is a further increase to 90 per cent of in reducing the amount of antibiotic resistant pathogen German production by the end of 2020. found in the entire chicken meat production chain?’ Along with the promising findings, clearly expressed The use of antibiotics should be reduced to a requirements, demands and questions came to light. minimum Detailed results of the research findings are available In 2017, the PHW Group set itself a sustainable target online. to increase the number of farming partners not using antibiotics to 70 per cent by the end of 2020. Around 65 per cent of WIESENHOF poultry was already not treated with antibiotics. Very importantly linked to this point is the fact that the treatment of a sick animal with antibiotics is only allowed following a veterinary indication in compliance with a prior resistance test. Through varying measures, for example more intensive personal attention and advice given to partner farmers during rearing as well as extensive support and advice from qualified vet- erinarians, the PHW Group plan to reduce the amount of

antibiotics used even further. The continual analysis of all In May 2019, Dr Michael Südbeck, Head of Quality information collected during the rearing period, including Management, was voted onto the Board of Directors of Food Created Without Genetic Engineering Com- our data bank of treatments carried out, enables us to ponents (VLOG) for the next three years. react promptly and optimally advise our partners accordingly. We were able to improve the animals state of health in the last three years to such an extent that we are confident that we are able to achieve our target set in 2017 by the end of 2020, says Dr Michael Südbeck, Head of Qual- ity Management.It is not realistically possible to avoid the usage of antibiotics 100 per cent. When an animal becomes ill, it sometimes needs, according to veterinary assessment, an antibiotic treatment. It is important, however, to reduce the amount of antibiotics used, wherever possible, to a minimum. We know today that many factors influence the health of animals: our target is to implement a variety of aspects to improve animal health even further. We will continue to avoiding and removing antibiotics wherever possible through our animal welfare concept in farming-partner rearing programmes.

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 27 3. 1 Animal welfare and contracted farmers | Continual improvement in animal welfare

Furthermore, the PHW Group is a partner of the AU- search project KontRed (Development and implantation TOWOHL (Automatisierte Erfassung von Tierwohl*-ind- of technological procedures to assist in the reduction of ikatoren bei Geflügel = Automated recording of Animal microbial contamination in the poultry and pig slaugh- Health Indications for poultry) project, supported by the tering process). This research project focuses on the German Federal Ministry for Nutrition and Agriculture. development and measures required in order to reduce The target is the standardised recording of animal health the pathogenic microorganisms (particularly concen- indicators using, and the improvement of, automat- trating on the fight against campylobacter infection and ic computer-based image systems. The PHW Group salmonella) during all stages of the slaughtering process focuses on the issues of campylobacter infection and for poultry (broiler chickens and turkeys) and swine. salmonella. To this end, it therefore joined the federal re-

Active transparency illustrated by partner farmers

The Kuck family from the town of Wiefelstede regularly opens their doors to interested visitors. In collaboration with the Research Information Centre for Sustainable Poultry Management, the farming family offers an insight into their conventional chicken rearing. In the area of conflict between negative headline news and romantic idealisation, the Kuck family is more than willing to For the Kuck family farming goes hand in hand with the trans- explain in detail how they raise their poultry. We enjoy parency initiative. The subject of animal welfare is a matter close to their heart and of the utmost importance. a very high standard in Germany. One should show this quality, states Gerd Kuck, farm manager, proudly. The farming family is not alone in this opinion: a lot of farming partners are organising activities on their own initiative. The active transparency helps us to show our core business to interested members of the public from all sides and explain how we operate in practice. We are proud of our partner farmers and are very grateful for their openness and recognise that this cannot be taken for granted, explains Theile Funke, Manager of BWE Brüterei Weser-Ems (hatchery).

In June 2019, the Ideler farming family held an open day for all interested visitors to see how their parent animals are kept.

28 PHW Group 2019 Sustainability Report 3. 2 Animal welfare and contracted farmers | Diverse concepts for rearing

Alternative rearing methods in comparison

The approximately 1,000 self-employed partner farmers conventional feeding and rearing in comparison to the raise poultry according to six different concepts. The conditions applied in animal welfare concepts. following table emphasises the differences between

Criteria Conventional Initiative Donautal WIESENHOF Kip van Morgen Beter Leven 1 WIESENHOF Tierwohl (animal Premium Private Farm 2020+ Stern rearing welfare Poultry (German Animal initiative) Welfare Federati- on 1-Star) Stocking 35 kg/m2 up to a 35 kg/m2 for all Up to a max. 30 Closed barn with 38 kg/m2 25 kg/m2 density: weight of 1,600g, weight classes kg/m2 plus 10% winter garden: 17 thereafter when higher sit- birds/m2, max. 29 39 kg/m2 ting level (perches) kg/m2; without are available additional winter garden: 15 birds/m2 = 25 kg/m2 Breed: Ross or Cobb Ross or Cobb Ross or Cobb Slow growing, Slow growing, Slow growing, approved by approved by Dutch approved by Dutch German Animal animal protection animal protection Welfare Federati- authority, ‘De Die- authority, ‘De Die- on, and recording renbescherming’ renbescherming’ of key indicators for regular assessment Rearing period: Approx. 30-40 Approx. 30-40 32-40 days Approx. 42 days Approx. 42 days At least 56 days days days Type of rearing: At least 3% of the At least 3% of the Winter garden or Winter garden or At least 3% of At least 20% floor space has floor space has free-range similar free-range the floor space is winter garden daylight, minimum daylight, minimum scratching area area natural daylight, 20 lux (new 20 lux (new minimum 20 lux, buildings as from buildings as from regulated day- October 2009), October 2009), night cycle regulated day- regulated day- night cycle night cycle Feed: Non-GMO soy* Non-GMO soy* Non-GMO soy Non-GMO soy 100% RTRS soy 70% cereal content/ non-GMO soy* Equipment Straw, hay or other Picking objects, Straw bales, Straw bales, Straw bales, Straw bales and layout:: bedding materials straw, hay or other picking objects, picking objects, picking objects, grain in litter for bedding materials perches, cereal perches, cereal perches, cereal picking picking litter picking litter picking litter

* With this rearing method non-GMO soy is not stipulated. However, the PHW Group voluntarily insist on non-GMO soy and does more for animal welfare than legally stipulated.

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 29

Environment and 4production

PHW Group 2019 Sustainability Report 31 4. 1 Environment and production | CO2 footprint

Bringing successes to light in the fight for climate protection: reduction of CO2 footprint

In 2008, the PHW Group took an essential step forward dard. Just as with previous stipulations five production regarding their commitment to climate-friendly produc- modules (feed mills, rearing of parent birds, hatcheries, tion. As the very first company in the poultry sector, the breeding farms and abattoirs including logistics) were traditional family-owned enterprise from Lower Saxony taken into account for the calculation. calculated a CO2 footprint for the entire production chain. The results from that time and statistical data The highest quota relating to the amount of CO2 emis- collected in the production sites gave a good starting sions found originated, as previously found, from the position for the plan to optimise all manufacturing pro- feed mills module, followed by the rearing farms and cesses and logistic practices, states Dr Heinrich Dröge, slaughter process. The lower amounts of CO2 emis- PHW Board of Directors. To date, the PHW Group has sions were produced in the hatcheries and parent flock presented their CO2 footprint for chicken meat produc- husbandry. “In order to continually develop tion six times. The most current result available is from climate-friendly business processes and 2017: a partial carbon footprint for production (PCF) with create new perspectives, it is of the utmost a result of 2.2 kilograms of CO2/kilogram of chicken importance for us to determine the status meat (net carcass weight) was determined. The audit quo. Only then can we plan with operational measures complied with the DIN CEN ISO/TS 14067: 2014 stan- where improvements are obviously necessary. Over recent years our information and analysis thereof clearly

demonstrate that we could reduce our CO2 footprint on a sustainable basis”, explains Dr Heinrich Dröge.

Potential savings are not allowed to be introduced if they negatively influence the quality of animal health and welfare. The PHW Group recognises the potential for savings within the animal feed production sector. Focusing on the wellbeing of the animals concerned is of the utmost importance. “We expect a further reduction in CO2 emissions in poultry meat production in the near future”. “We see the main saving potential in the optimisation of feed composition, whilst of course taking the welfare of the animals concerned into consideration. In addition, we are constantly striving to Dr Heinrich Dröge has been a member of the PHW improve the production and logistic processes, critically Board of Directors since 2005 and is responsible, in addition to other tasks, for the regular calculation of scrutinising exactly where the saving potential lies. One the CO2 footprint. thing must be constantly guaranteed: impeccable food safety for our renowned, high-quality product range”, emphasises Dr Heinrich Dröge.

32 PHW Group 2019 Sustainability Report 4. 2 Environment and production | Producing on a 100% climate neutral basis

Flagship project: ZNU-certified production sites produce on a climate neutral basis

A new milestone in the PHW Group’s commitment to sustainability was reached on 1st January 2020: all WIESENHOF production sites for chicken, turkey and sausage production are producing on a 100 per cent climate neutral basis. “As we decided that our six ZNU-certified production sites were to take part in the ‘ZNU goes Zero’ initiative, it was clear for us that we wanted to work on a 100 per cent climate-friendly basis straight away. We abandoned the possibility of modifying our production methods on a long-term basis, which would have been easier“, states Katrin Metschies, Sustainabil- ity Manager and Head of Public Relations. Within the framework of their voluntary climate protection initiative, the ZNU has set a target that by the end of 2022 Katrin Metschies and her Sustainability Team found ClimatePartner to be the perfect partner. The PHW Group is looking forward to they would be able to work on a climate-neutral basis carrying out and expanding their climate protection projects. with at least 70 of their corporate business partners. The six WIESENHOF production sites proudly comply with the high standards stipulated already. Ahlhorn, Lower Saxony. Within the scope of this project one tree is to be planted for each of the 7,000 In line with their enrolment in the voluntary ‘ZNU goes PHW employees. “We are planning days for our employ- Zero’ initiative, the six ZNU-certified WIESENHOF pro- ees to participate in in order to sensibilise our workers duction sites have committed themselves to verifiably and make the project come to life practically through avoid and reduce greenhouse gas emissions and in and with them. We would also like to organise and invite addition to compensate for the unavoidable emissions school classes to collaborate and support us in our local caused. Since 2015, energy management for the entire project too. Climate protection involves and concerns PHW Group value creation chain has been certified in everyone in the community; we are pleased to be able to Germany according to DIN EN ISO 50001. Every PHW integrate even the youngest community member to take site is provided with its own energy team. part in our project and above all, we can set an example in our particular region for climate protection’, explains

Local and international CO2 compensation projects Katrin Metschies, Sustainability Manager. Even though In order to competently achieve the compensation Germany counts as one of the countries in the EU with target calculated according to the Greenhouse Gas one of the densest woodland areas, the effects of cli- Protocol (GHG Protocol), which calculated annual levels

of approximately 80,000 tons of CO2 on-site, WIESEN- HOF supports two projects with ClimatePartner, one of the leading providers of climate protection solutions. On the one hand we are involved in a regional refor- Further information about estation of a forest holding near the town of ClimatePartner may be found online

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 33 4. 2 Environment and production | Producing on a 100% climate neutral basis

mate change can be witnessed here too. ClimatePartner “It was a conscious decision to choose ClimatePartner, therefore supports the reforestation and renovation of due to the fact that they are involved in projects abroad German forests. as well as supporting and expanding climate protection projects here in Germany. Because they operate here in Another project that the Lower Saxony-based, fami- our local area of Lower Saxony, they have proved to be ly-owned business is involved in is on an international the perfect partner for us. Through our participation in level in another forest protection project in the the reforestation project here in Ahlhorn, we can active- Peruvian Amazon, certified according to VCS and ly take part in protecting the biological diversity locally. CCBS Standards. This project is concerned with and We see our engagement as an ideal complement to our committed to the retention of 300,000 hectares of other biodiverse projects, for example, the projects that rainforest, which provides a livelihood for 400 native we regularly carry out with the Andreaswerk in Vechta’, families. Through the support received, the families are says Katrin Metschies. able to retain their land rights and through the cultiva- tion of Brazilian nuts, they are able to retain a source The PHW Group activities concerning climate protection of income. Illegal tropical deforestation will become can be reviewed using the individual ID Number unattractive and will therefore be reduced. The small 14020-1912-1001 on www.climatepartner.com local farmers become a small financial loan and support ClimatePartner registers exactly how much CO2 is creat- with the logistics and marketing of their produce. At the ed and through which projects it is compensated. same time, they are shown how to increase their crop yield by implementing environmentally friendly cultiva- tion methods.

In the Lower Saxony forest area in Ahlhorn, the PHW Group will plant one tree for each of their approximately 7,000 employees.

Forest protection projects ensure that forests survive on a long-term basis. In the Peru project 400 native families work together to protect the 300,000 hectares of primary rainforest in the Amazon region.

34 PHW Group 2019 Sustainability Report 4. 3 Environment and production | Savings in the area of packaging

Conserving resources Food safety is the top criteria

Which objectives and strategies can the PHW Group possibilities that we can actively tackle: firstly, we want follow in the packaging area? to reduce the amount of material used and secondly, we must strictly examine the recyclability of the new Doris Wesjohann: In recent years the discussions con- material in question. cerning the use of plastic in packaging have increased in relevance. A lot of companies have extensively re- What challenges do you see in the packaging area searched into this area to find a solution to the amount for the PHW Group? of plastic used. We find we are at present between two priorities: on the one hand sustainable Doris Wesjohann: The recyclability of new materials packaging materials are demanded and on the other is a key issue for us. Unfortunately, many recyclable hand there can be no compromise in the high standards materials come with an increased raw material input. of food safety that we have acquired and demand. We That means that even when we manage to find a product are continually searching for possibilities that is good to recycle, it could mean that a larger that offer a potential material saving for amount of the new material has to be used to achieve our packaging and can report success in the same grade of quality required to ensure that food this area. In 2018, the film thickness was drastically safety is maintained to our usual high standard. We reduced and thus 131 tons of plastic saved annually. In are searching intensely for alternatives that the fresh product range, PP bowls have been employed allow a reduction in the amount of material as packaging since November 2018. The transformation used and that are at the same time recycla- was complete in the middle of 2019, so we were able ble. The cost-effectiveness and ecological aspect have to report an additional saving of 375 tons of plastic per to be taken into consideration; the solution must also be year in this area. The amount of top film required was affordable for the end consumer. reduced after an extensive test phase in 2019 (saving 40 tons of plastic per year). Further tests are currently being carried out for a further reduction in other film packaging combinations. The first results are expected within the first half of 2020. Furthermore, through the reduction in the film thickness used for sliced poultry sausage packaging we have been able to cut back by an additional 27 tons of packing material per year since 2019.

What can you do as a food producer to further reduce the amount of plastic used?

Doris Wesjohann: Any cutbacks in packaging are not allowed to influence the high quality of product safety that we have achieved. Top quality coupled with

a 100 per cent food safety is the crucial Doris Wesjohann, member of the PHW Board, is also responsible benchmark for our packaging in the area of for strategic purchasing. quality management. In our opinion we have two

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 35 4. 4 Environment and production | Logistics

Reducing fuel consumption on a long- term basis

The PHW subsidiary MEGA Tierernährung (animal feed) 15,000 litres of diesel saved annually through com- is the leading producer of poultry feed within Germany pressor technology and one of the most pioneering feed producers within A further improvement to reduce fuel consumption is Europe. In 1993, MEGA Logistik & Service was found- the implementation of new fuel-saving compressors. ed; it currently has 32 trucks and employs around 75 Whilst the previous compressors used 10 litres of diesel drivers. The subsidiary is responsible for the transport of per hour, the new compressors only consume 9.2 litres poultry feed to collaborating farmers. In order to reduce of diesel per hour. “That is eight per cent less the amount of fuel required, the PHW Group made ad- diesel used whilst standing“, explains Adrian Heu- justments in several areas. er. It has been worthwhile: between July 2018 and July “In July 2017, we introduced for example a premium for 2019 approximately 7,000 litres of diesel have economical driving and fuel consumption reduction with been saved and at that point only about half of the very satisfying results. After two years in practice, we fleet had been modified. The PHW subsidiary is planning have determined that our drivers drive rather economi- to continue with the further modification of their trucks cally”, explains Adrian Heuer, Manager of MEGA Logistik in order to reduce fuel consumption annually in the & Service. future by approximately 15,000 litres of diesel.

Driving more climate-friendly and saving fuel at the same time Furthermore, the PHW Group is prioritising a new generation of trucks. The new fleet is equipped with a MirrorCam instead of external mirrors. At the beginning of 2020, the first eight trucks were equipped with this camera. The advantage of this is that it improves visibil- ity to the rear, particularly when turning right. The camera image pans with every movement of the vehicle and projects the image directly onto displays in the driver’s cab. This simplifies maneuvering and turning as well as necessary lane changes even under difficult conditions. This new technology influences not only driving safety, but it also reduces fuel consumption. In addition, more and more of the PHW trucks are fitted with a TomTom navigation system, which helps drivers to plan an opti- In the logistics department Adrian Heuer, Manager mal route. This system has been tailor-made for use in of MEGA Logistik & Service, and his colleagues seek new possibilities to reduce fuel consumption on a trucks and promptly assists with real-time information in long-term basis. the event of traffic jams or road problems.

36 PHW Group 2019 Sustainability Report Photo above: Eight PHW trucks have already been fitted with the new MirrorCam. The entire fleet will be successively equipped with this system in the near future.

Photo right: The five installed e-charging stations are a further pilot project.

Improved deployment of trucks through transport of additional goods belonging to third parties The PHW Group is endeavouring to compensate as far as possible the free space capacity (due to the fluctua- tion in customer ordering) within their trucks by trying to transport goods for other companies with the same product range, conditions and standards alongside their own deliveries. “Simple, but a good solution”, states Dr Heinrich Dröge, PHW Board of Directors. E-mobility as a model for the future? “Poultry is an extremely sensitive product and particularly sensitive to temperature changes; Is electro mobility the key to climate-friendly transport? our drivers are specifically schooled in the high The PHW Group believes that it is at least a step in the right direc- hygiene standards required in respect to the tion. For this purpose an electrical charging unit has been fitted in combined transport for third party items like, Lohne and in Bogen. The ultimate trendsetter in the PHW Group for example, fish products – the conditions in electrical mobility are, however, Anhaltinische Geflügelspezi- have to be carried out according to the exact alitäten in Möckern. The PHW subsidiary operates three electric instructions given.” charging stations. The first charging column was erected before summer 2018. The company also has two electric cars. Further electrical charging units, as well as additional battery run company pool vehicles, are planned for all PHW Group production sites.

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 37 4. 5 Environment and production | Preserving biodiversity

Collective goal: more biodiversity

area, as big as a quarter of a football field, was manually planted with multiannual seeds. “With the insect hotel and flowering meadow projects our collective aim was to create new living areas and biotope to protect the biological diversity with help and assistance from Andreas- werk. We appreciate the expertise of our partner and are pleased to have given our trainees the opportunity to gain insight into the work within social welfare organisations. We definitely want to continue with our partnership and are already planning new worthwhile projects”, states Sandra Hebbeln, Sustainability Manager, PHW Group.

PHW subsidiary committed to biodiversity projects Sandra Hebbeln coordinates the biodiversity pro- Biodiversity projects also exist at other PHW sites: jects within the scope of sustainability management. Oldenburger Geflügelspezialitäten planted a 1,125 m2 flower meadow in 2019 too. Since 2019, Geestland Putenspezialitäten, located in the city of Wildeshausen, The PHW Group headquarters, based in Rechterfeld, has have sponsored a local project called ‘Happy Bees’. The found a regional collaboration partner: Andreaswerk PHW subsidiary gave financial support for a flowering Vechta e.V. They have been working together since 2018 meadow in Ganderkesee. A WIESENHOF partner farmer on a variety of sustainability concerned biodiversity provided the 10,000 m2 plot of land and Geestland projects. Andreaswerk Vechta e.V is a registered chari- Putenspezialitäten took over the financial sponsorship table association and has been providing assistance and for the land and flowering meadow for the next three educational support to disabled groups since 1969 (as successive years. In addition, the WIESENHOF site for a subsidiary to the state). The state-approved institution poultry sausage has expanded its partnership with promotes and supports 1,500 disabled people in the Vechta region. At one of the organised open social days, the PHW trainees and disabled people present built 360 insect hotels together for the beneficial insects as housing units for nesting or a protected place to stay in the winter months, which were subsequently handed out to PHW employees for Christmas.

A further symbol of the commitment to biodiversity and social engagement illustrated through the PHW Group and Andreaswerk partnership was the flowering meadow Proud performance: PHW trainees built together with the project that took place in spring 2019. The Andreaswerk employees of the Andreaswerk Vechta 360 insect hotels. gardening department planted a 2,000 m2 field on the PHW site with flowering plants with help from PHW trainees. During the campaign the complete

38 PHW Group 2019 Sustainability Report Oldenburger Geflügelspezialitäten put their faith in environmentally friendly rainwater management

Following a serious fire in 2017, the PHW site in Lohne was rebuilt. Before the devastating fire took place, the surface water was directed over pre-flooder and flooding basins into rivers that took the superfluous water into the North Sea. Heavy rainfall caused severe flooding within the ditch system surrounding the neighbouring area of Brägel. The entire Oldenburger Geflügelspezialitäten site was paved or built up, which prevented the rainwater (in severe weather conditions) from seeping away into the ground. “During the planning process for the reconstruction of the Oldenburger Geflügelspezialitäten site, we decided to include an environmentally friendly rainwater management system. The starting point for the innovative concept was the fact that the vast amount of drinking water abstracted could be effectively compensated by building wells, directly on-site, which would then pump the surface water into the groundwater on the company’s grounds. The preservation of the recycled surface water into the area that normally supplies the drinking water in this region helps to stabilise the groundwater level on the production site. In addition, the fact that severe floods could also be avoided through this procedure played a major role in the decision to install a four-part underground buffer stor- age system”, explains Leonie Wegener, Team Manager for sustainability in Lohne. The rainwater flows into several underground buffer tanks, placed behind one another, with a complete volume of 850 m3. The water is then able to constantly seep away under the paved areas. The bottoms of the infiltration ditches are open to the earth beneath and even with heavy, extremely persistent rainfall, they can still collect the entire surface water from the roofs as well as from all paved areas on- site. If the volume of the buffer system is not large enough to take on the amount of surface water caused by severe weather conditions, the rainwater will flow further into two seepage reservoirs, situated near to the waterworks on-site, which existed before the fire broke out in 2017. The newly fitted lawn grid stones on the employee parking areas have also proven to be a good investment; they allow the rainwater to seep through, thus further reducing the amount of surface water present.

Kiebitz Dienstleistungen: in the spring of 2020 the company will invest in a 600 m2 wild flower meadow in Rietberg. MEGA Tierernährung (animal feed) and BWE-Brüterei Weser-Ems (hatchery) additionally support the association Förderverein Großtrap- penschutz e.V.

Teamwork: by the end of 2019, the PHW Group had managed to plant around 18,000 m2 of flowering fields within their sites. The PHW Group is planning to double the area planted with flowers by the end of 2021.

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 39

Raw materials 5and animal feed

PHW Group 2019 Sustainability Report 41 5. 1 Raw materials and animal feed | Sustainable soy meal

PHW continues to focus exclusively on sustainable soy meal for feed production

Ralf Kenkel, Manager of the PHW subsidiary MEGA Tier- The Brazilian soy meal in feed used by WIESENHOF ernährung (animal feed) uses a quote to describe complex farming partners fulfils the ProTerra sustainability stan- global sustainability interrelationships: “Sustainability dard. This standard guarantees that the only soy used is has no limits”. With this quote, he hits the proverbial produced from fields in areas where no aimed clearance nail on the head and draws attention to the fact that has taken place for at least ten years. a great necessity exists for the global procurement of certified animal feed from South America. In contrast to “In this sector one refers to a ‘deforestation-free supply the major main buyer countries for soybeans, in particular chain’. The key issues for ProTerra are the protection of China, soybeans continue to play an important role in the the Amazon, the protection of the rights of indigenous sustainability debate in Germany. Mr Kenkel points out people belonging to minority or ethnic groups and small with expressive reference in this debate that PHW chicken farmers, the promotion of good labour conditions, good feed is currently produced using 60 per cent domestically working practices in farming, in particular concerning the produced raw proteins. preservation of the soil fertility and water management, as well as the protection of biological diversity.

“We are also actively involved in the multi-stakeholder dialogue associated with this sustainability standard”, states Ralf Kenkel as he describes the MEGA company’s commitment to sustainability.

Further information about the ProTerra standard is available online:

MEGA Manager Mr Ralf Kenkel has got the global animal feed market in focus. Chicken feed is currently being produced using 60 per cent domestically produced raw proteins instead of soy meal.

42 PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 43 5. 2 Raw materials and animal feed | Insect protein instead of soy

PHW is urging for European approval for the use of insect protein as an alternative to soy in the production of poultry feed

The PHW Group has been actively involved for a long time Collaborative feed study now with the use of alternative protein sources in the A lot of extensive feeding studies and analysis will have poultry feed sector. “With the investment in the Canadi- to take place before the soy feed component can be an company Enterra Feed Corporation we have taken a replaced with insect proteins. The modified feed compo- decisive step forward”, states Mr Ralf Kenkel confidently. sition must comply with animal health legislations relating We are involved in various research projects concerned to the welfare of all animals concerned. “We aren’t able to with the introduction of feed with a high protein con- say at present when we will be able to substitute soy meal tent. It is an advantage for us to be involved in this new with the use of insect protein. It is of the utmost impor- development and I am pleased to have found the right tance for us that we move ahead in this direction”, states strategic partner with Enterra. Our future aim is, as the MEGA management. far as possible, to avoid the use of soy in our poultry feed production. “Instead we see an appro- Using the black soldier fly as a source of protein priate alternative in the Enterra developed insect protein”, The Enterra Feed Corporation produces and markets feed states Mr Kenkel as he explains the future business plan. additives gained from the black soldier fly larvae (herma- A major obstacle though missing the final EU approval tia illucens), a useful insect that may be found at home in for insect protein as a food substitute in feed for pigs and tropical conditions as well as in regions with a moderate poultry. climate worldwide. The larvae feed mainly on plant-based waste products and convert them into valuable protein, fat and energy. A powder/granules are produced out of the dried larvae, which could serve as a suitable feed component. The PHW Group is convinced that they must drastically reduce the amount of soy meal used in animal feed. Insect protein is an attractive substitute.

44 PHW Group 2019 Sustainability Report Complete sausage variety is VLOG certified

PHW’s top brand WIESENHOF has, since 2000, banked on GVO-free soy meal in chicken feed and was the first poultry producer in Germany to do so. Since 2015, all fresh WIESENHOF natural chicken products have carried the VLOG ‘Ohne GenTechnik’ (No genetic engineering) official seal of approval on its packaging. The fresh natural products derived from turkey acquired the VLOG approval three years later. In autumn 2019, the company went one step further. The complete cooked sausage range was modified and proudly presented with the VLOG seal of approval. This specifically means that not only is the poultry meat produced without genetic engineering, but also all other ingredients such as spices and flavourings too. The ‘Ohne GenTechnik’ seal of approval is a clear signal for the consumer and has successfully established itself on the market. For German consumers the fact that products are free from genetic engineering processes plays a very important role in the decision to purchase. “The VLOG seal of approval offers visual assistance when making a quick decision whilst shopping”, states Dr Ingo Stryck, WIESENHOF Marketing Manager. “Consumers demand transparency and that’s what we are able to guarantee: with the VLOG approval on the packaging of cooked sausage products, we are able to achieve, in addition to our concept of ‘German poultry from local farms’, extra added value at the point of sale.”

Processing plants: all palm oil used complies with the Segregation Standard (SG)

Meanwhile, PHW has already accomplished their set goals for the past two years and now exclusively uses palm oil that is sustainably produced and complies with the Segregation Standard (SG) in all processing facilities. Palm oil is used in some meat marinades and in poultry sausages. The latter are produced at WIESENHOF Geflügelwurst GmbH & Co. KG in the town of Rietberg. During 2019, the PHW subsidiary changed from the Mass Balance Standard (MB) to the Segregation Standard (SG) accordingly.

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 45

6Social responsibility

PHW Group 2019 Sustainability Report 47 6. 1 Social responsibility | Employee retention and promotion of young talent

Through demonstrating our social commitment, we become visible – with our team we can actively shape the future!

In times where there is a definite shortage of skilled Depending on their individual qualifications and require- workers on the market, there are two hurdles that a com- ments, the participants took part in the trade, technical pany has to face: firstly finding motivated, well-schooled or management streams. Different training courses, work- and committed employees and secondly keeping hold of shops and tutorials were offered over the incentive period them. Only employers with attractive working conditions of 16 months. The response was certainly positive, which can take on both challenges. In recent years employee explains why the PHW Talent Programmes are planned to loyalty has gained in importance and plays a major role start again in 2020. An activity, such as the ‘Fan Day’ trip for the PHW Group. The Lower Saxony family-owned busi- for PHW trainees to meet Werder Bremen (a team in the ness has introduced several measures in order to focus first German football league (Bundesliga)) was aimed at on their entire team, including trainees, dual students and younger employees. The PHW Group has organised this last but not least long-serving employees. The PHW Tal- event for the past two years. “Attractions such as the trip ent Programme concerns staff with job experience. to visit the Werder Bremen stadium and meet with the In 2017, this programme was launched in Rechterfeld. Werder football professionals face to face are a highlight Thirteen members of staff belonging to the PHW Group and create joint memories for the whole team. During and subsidiaries thereof received an individual aligned this event the trainees were able to visit various locations plan to promote their particular talent.

In 2019, 36 PHW trainees took part in ‘Fan Day’.

48 PHW Group 2019 Sustainability Report and exchange their experiences”, says Katrin Metschies, Sustainability Manager and Head of Publicity who planned the day out with the personnel department.

Investing in the future The PHW Group takes its training assignment very seriously. At present there are 20 apprenticeships and three dual degree programmes available. In 2019, 30 trainees successfully completed their apprenticeship. To remain present on the extremely competitive job market PHW created a new initiative ‘Come and join our team’ with a clear aim to attract talented junior members of staff. A special project was launched to attract trainees interested in becoming truck drivers with the motto ‘Drive that big thing’, successfully supported by GEPRO, BSG and MEGA Logistik & Service (companies in the PHW Group). For the apprenticeship as a process technologist in the mills and grain processing areas a new campaign has been initiated to make the job more attractive with the motto ‘Mischen Possible’ (mischen = mix). To catch the attention of younger, potential trainees, modern adver- tising and media platforms such as YouTube, Facebook, Instagram etc. have been effectively employed. In addition, the PHW Group is not only regularly present at job and training fairs - they also presented the first WIESENHOF Training and Career Event in Vechta in 2019, for example.

New team players are regularly being searched for at various Internal and external networks are important for the apprenticeship exhibitions. The PHW Group wants to extend the future focus on employee loyalty, and consequently employer personnel department. In May 2019, the first person- branding, even further. nel department meeting took place in the Wohninvest WESERSTADION in Bremen (the football stadium of SV Werder Bremen). Issues such as the shortage of skilled workers, employer branding and recruiting were able to be discussed by the 37 participants who came from all PHW subsidiaries. The PHW Group is striving to expand external connections too. In particular, the IHK Olden- burg (Chamber of Commerce and Industry) has recently become an important partner as part of the external network, especially with regard to apprenticeships and further training areas. The PHW Group also works with a variety of universities and adult education centres and the DLG Academy (DLG = German Agriculture Society). The PHW Group in Rechterfeld has been a member of the group for family-friendly organisations since 2018.

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 49 6. 1 Social responsibility | Employee retention and promotion of young talent

Creating an attractive environment for employees on the job The company’s health and safety management Employee satisfaction is essential for the success of ev- team offers a broad spectrum for career starters and long-term employees alike. Yoga courses have ery business. Only motivated members of staff been running regularly since March 2019. who identify themselves with the company remain with their employer and expand with the company in the long term. In addition to continual training, the health aspect plays a major role in employee loyalty. Since 2017, the PHW group has instigated several health management projects. These range from activities during the lunch break to workshops about healthy communication and include step counting challenges or sports courses. Other projects, such as stress management and healthy eating for example, are planned. A collaborative project with the Red Cross took place and at the end of 2018 the first blood donations took place. Fifty employees took part in the campaign and. 32 of them donated blood for the first time. “Blood donation is important and saves lives. With this project, we wanted to motivate the employees and show them how important this theme is for everyone” says Katrin Witgenfeld, who is a member of the company Health Management Team. The blood donation project was repeated in 2019 and is planned to continue in the future.

Katrin Witgenfeld, Assistant Manager, MEGA Tierernährung, responsible for Health Management for the PHW Group in Rechter- feld since 2017.

50 PHW Group 2019 Sustainability Report 6. 2 Social responsibility | Promotion of integration projects

Regionally rooted, socially responsible

Approximately 1,000 people work for Geestland Puten- In addition to the financial support given, Geestland spezialitäten (subsidiary of the PHW Group) in the town Putenspezialitäten have been collaborating with the local of Wildeshausen, Lower Saxony. In order to support and adult education centre since February 2019. The PHW integrate the Bulgarian contracted employees within the subsidiary offers, within their own four walls, German PHW subsidiary, 50,000 euros were made available to language courses for their staff. An extra classroom has financially support the workers with measures to assist been equipped for this purpose and the language courses with their integration. The company is constantly in can be taken before or after the regular shift working contact with the relevant local authorities concerned with times. integration and problem solutions for foreigners who are new in Germany. The greatest challenge to integration is the language barrier for both the children and grown-ups. In Wallschule primary school in Wildeshausen for example, a social worker and translator are on-site to assist the teachers, thanks to the financial support. Geestland Putenspezialitäten offers translation services, free of charge, to local schools. The money offered is also used for supervision to help with homework. At Holbeinschule Geestland Putenspezialitäten finances local integration projects. Manager Norbert Deeken sees the primary school, the Spirit project team was financially possibility of long-term sponsorship. supported. Bulgarian children were taught in small and heterogeneous groups during the introductory learning period. The social work area within schools is playing an increasing role. The major tasks are the integration of families with an immigration background into the German school way of life as well as help for parents seeking contact with the school authorities. In addition, two spe- cially trained teachers were employed to help with early childhood care and were supported by the funds between March and June 2019. “The 50,000 euros were just the beginning. We can imagine sustainably supplying an annual specific budget for the long term. Through our financial commitment we can make a small contribution to providing improved integration”, explains Norbert Deeken, Manager of the Geestland Putenspezial- itäten.

PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report 51 6. 3 Social responsibility | Work of the foundation

Our food of tomorrow: Heinz Lohmann Stiftung sponsors sustainable projects

The charitable organisation Heinz Lohmann Stiftung (char- “Despite high competition and political pricing pressure ity), which belongs to the PHW Group, promotes scientific the results from the branch experts show a predominantly research into tomorrow’s nutrition and the development positive trend, due to tight regulation and concentrated of our eating habits. In summer 2018, the research trade practice within Germany”, sums up Prof Dr Rainer project titled ‘Prospects and development Kühl part of the study. 86 per cent of the experts out of tendencies on the German nutrition market’ the beer branch and 64 per cent of those out of the bakery was introduced by the Justus Liebig University in Gies- product branch assess Germany with a result of very good sen. The institute focussed on four branches: bakery or good. Representatives out of the dairy product and poul- products, beer, dairy products and the poultry business. try branches rated Germany with 67 and respectively 75 Prof Rainer Kühl, assigned to head the study, recognised per cent only with the result satisfactory or with sufficient. that in order to obtain exact evaluations and feedback, a Predominant very good ratings were given by the experts variety of consumers and experts were to be questioned. in the reply to the question regarding the image of German In three rounds of questioning between May and October products abroad; the infrastructure, the functionality of of- 2017, 234 expert opinions from the four above-mentioned ficial food control and with regard to the leading role in the branches were collected in written form (Delphi method). area of animal and environmental protection regulations. In the third round the experts took into consideration Related to the presence of trainees and skilled employees results registered from 2009 population representative the interviewed partners saw the situation as critical. studies, recorded through an online questionnaire. The complete study results are available online:

The presentation of the 4th Volker-Pudel Prize took place within an event around the theme nutritional education at the regional garden show in Lower Saxony, in Bad Iburg. Honoured guest was Uwe Newman Chairman of CookUOS e.V.

52 PHW Group 2019 Sustainability Report Sponsoring sport – our clear regional commitment

“As we see ourselves as a company are devoted to our region and enjoy a down to earth way of thinking, regional commitment is a very important factor”, explains Dr Ingo Stryck (right), WIESEN- HOF’s Marketing Manager. Since 2012 WIESENHOF is partner to the first football league (Bunde- sliga) club SV Werder Bremen and in July 2019 both partners agreed to extend the main and tricot sponsoring long before the renewal was due. The extension runs up to the end of the 2021/2022 season. This ensures that the WIESENHOF logo has been present for an outstanding du- ration of ten years. No other company in the club’s history has been a major sponsor for so long. In addition WIESENHOF has sponsored the first basketball league club RASTA Vechta. One year after, the sponsorship was extended so that WIESENHOF became a Gold Club Partner. “It’s no secret that WIESENHOF is very engaged and is pleased to be able to promote young- sters. That’s why we match perfectly”, states RASTA Vechta’s Manager Stefan Niemeyer about the partnership. “Just as we need support from our sponsors in order to offer basketball on a professional basis in the town of Vechta, our region needs a strong economy with companies like WIESENHOF, which not only offer a large number of jobs, but also offer a huge amount of support through their social commitment. We are grateful and thank WIESENHOF for their support so far and are looking forward to enjoying further success through their welcome support.” Other PHW subsidiaries support regional sport clubs too. Donautal Geflügelspezialitäten sponsors the national ice hockey league team Straubing Tigers and Anhaltinische Geflügelspezialitäten supports the national handball league club SC Magdeburg.

Future-orientated research created by CookUOS e.V. for the scientifically researched In October 2018, the trustees of the Heinz Lohmann publication from Uwe Neumann, dealing with future-orien- Stiftung foundation gave the task of a new research tated problems and solutions in the general food chain. project to Prof. Christine Brombach from the Zurich University for Applied Sciences. This research project Support from the rural women’s association was issued to deal with the complicated issue of ‘Future (Landfrauen) eating habits’ from the perspective of consumers, social Nutritional education within local schools is a major issue groups, local authorities and producers along the entire involving Heinz Lohmann Stiftung to a great extent. Since value-added chain and is to provide information in relation 2012, the charity has financially supported a variety of to influences and consumption habits in the form of a nu- projects and workshops in coordination with the support tritional study. The publication of the results is expected work of the Landfrauen association in the Hannover in autumn 2020. region – especially in the project regarding cooking with children. Most recently, in autumn 2019, a donation of Awarding of Volker-Pudel-Preis (Prize) 5,000 euros was handed over to continue supporting the In 2018, the Volker Pudel prize was presented, for the existence of this worthy project and help it plan further fourth time, to Uwe Neumann, Chairman of the Osna- workshops. The overall amount of donations sponsored brück-based association CookUOS e.V. The purpose of by the Heinz Lohmann Stiftung for this particular project CookUOS e.V. is the innovative promotion and support has now reached over 20,000 euros, a worthwhile invest- of scientific communication and forwarding of nutritional ment in the future. studies in coordination with consumption habits that support the necessity of sustainable solutions for everyone. The award was presented for the innovative concept

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Publisher and responsible for the contents PHW Group LOHMANN & Co. AKTIENGESELLSCHAFT Paul-Wesjohann-Strasse 45 49429 Visbek Germany

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Photo credits The PHW Group is the owner of all image rights, except: all portrait photos and p 37/49/50 each above: Timo Lutz Werbefotografie P 19/20/21 below, Jakob Börner P 21 above, Gathered Foods (Good Catch) P 23, iStock P 34 left, www.climatepartner.com/1150 P 34 right, www.climatepartner.com/1114 P 40/41, Adobe Stock P 43, ProTerra P 44, Enterra Feed Corporation P 52, Birgit Ellrott

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Disclaimer The collection and processing of all information in the sustainability report 2019 was done with the utmost care. Nevertheless, the possibility of errors cannot be excluded completely. Any forward-looking statements are based on current assumptions and estimates made at the time of publication.

More information at: www.phw-gruppe.de

54 PHW Group 2019 Sustainability Report PHW Group 2019 Sustainability Report PHW Group

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