CSR Report 2018 Raising the bar Contents CEO foreword: Raising the bar 3 CSR performance overview 4 Our CSR ambitions 5 Our purpose 6 Our CSR ambitions 7 Our value chain 8 Our governance 9 Working together 10 Stakeholders: reporting on what matters 11 Operating in a changing world 12 About this report 13 Our CSR performance 14 Sustainable agriculture 15 Environmental performance: energy, CO2 & water 18 Health and safety 21 Product responsibility: quality & circularity 23 2 As a family owned business, we take our social and Message from the environmental responsibility serious. In order to safeguard the well-being of future generations, we set a new standard CEO: raising the bar in sustainability for ourselves and in our supply chain. Our renewed CSR strategy raises the bar and sets the ambitions higher than everOperate before.circular Holland Malt is committed to: Source 100% Create a 100% safe Operate circular by sustainable Reduce 35% CO2 barley in 2025 work environment emissions by 2025 50% in 2025 and by in 2025 and 70% by 2030 100% in 2030 We have been dedicated to sustainability for years, but we have now made our ambitions concrete, measurable and focused on creating positive impact in our supply chain. We cannot do this alone: cooperation is key. To this end we aim to establish partnerships with both ends of the chain. Always eying to create a win-win. We will also strengthen and enlarge our current ones, such as the sustainable barley projects. We are a strong supporter of the UN’s Sustainable Development Goals (SDGs) and the Paris Climate Agreement. We believe that the world needs collective action to tackle the world’s most pressing problems. Looking back, 2018 was a year to be proud of. Proud of the hard work that resulted in a record malt production and turnover. My personal highlight of 2018 was the opening of the new malting plant in Eemshaven. With the innovative energy and heat sharing system, we reduced CO2 emissions, while simultaneously doubling our capacities in Eemshaven to meet the growing demand. In January 2019 we also celebrated the second year without safety incidents (LTI) in Lieshout maltings! A great result of the ‘BeSafe awareness programme’. We are fully committed to continue on this road and hope to have a third year without safety incidents. In this report we show how we walk the talk: the results we achieved so far, our next steps and our long-term ambitions. Jos Jennissen, CEO Holland Malt I end this letter by expressing my gratitude to our customers, partners and stakeholders. I am looking forward to working with all of you in 2019 towards a sustainable supply chain and circular economy. 3 CSR Performance Sustainable Agriculture Health & Safety Environmental Performance Product Responsibility 0 2 0 3 90,5% increase of LTA Fatalities 193 kg CO2 per 3 m water Zero recalls 100% positive sustainably We did not only grow ton malt per ton malt results on external sourced barley in quantity, The amount of LTA quality audits but also in quality: (accidents resulting in absence from work ) In 2018 we nearly 63% was SAI stayed the same Both increased as opposed to last year due Your quality in our hands, we are happy to once again doubled the volume Silver or higher. compared to 2017. We to temporarily inefficiencies as a result of deliver excellence. All external audits have been compared to 2017. In 2017 this was 43%. aim to reduce this in 2019. the start-up of the new malting towers. succesful, most of them with the highest ranking. 4 Our CSR ambitions 5 Our Purpose Holland Malt delivers high quality malt at all times. We are Your quality in our hands. Holland Malt was founded over 100 years ago with the purpose to deliver quality a family owned business. We malt at all times, now and for future generations. This purpose is still at the heart of Holland Malt, but the world work hard every day to reduce around us has changed. We have always been fully aware of our social and environmental responsibility, but our environmental impact in since climate and resource scarcity are getting more urgent, we raised the bar with our new CSR commitments. Purpose our production, create a safe work environment and take responsibility for our product and in our supply chain to safeguard the well-being of future generations. ambitions 6 CSR CSR Our CSR ambitions We have been dedicated to sustainability for years and as a consequent step towards a sustainable business model, we have set concrete, measurable ambitions that focus on creating positive impact within our supply chain. With ambitions higher than ever before, we raise the bar and set a new standard in sustainability for ourselves and in the sector. We decided to concentrate our efforts on issues where we can create the highest impact for society: • Sustainable agriculture • Environmental performance • Health and safety • Product responsibility Sustainable agriculture Health & Safety These four pillars form the basis of our reporting and CSR strategy. For each Source 100% sustainable Create a 100% safe work pillar we will share our activities and we will monitor our progress by KPIs. In barley in 2025 environment in 2025 the chapter ‘Our CSR Performance’ we explain in detail our results and the CSR Ambitions impact we are seeking to make with our partners. Product responsibility Environmental Operate circular by 50% in performance We have set our ambitions on sustainability and circularity high in order to 2025 and by 100% in 2030 Reduce 35% CO2 emissions take our responsibility in creating the change that the world needs. All of our by 2025 and 70% by 2030 commitments have a wider impact on our value chain and benefit famers, employees, clients, consumers and our environment: • Source 100% sustainable barley in 2025 • Create a 100% safe work environment in 2025 • Reduce 35% CO2 emissions by 2025 and 70% by 2030 • Operate 50% circular in 2025 and 100% by 2030 We place our efforts in a broader perspective and align our ambitions to the UN Sustainable Development Goals (SDG’s). As shown in the visualisation to the right, each of the four pillars and ambitions contributes to a specific SDG. These are the SDG’s where we can create the highest impact. ambitions 77 CSR CSR Value Chain Our value chain is straight forward and transparent. It ranges from ‘Barley to Beer’. At the moment, most of our CSR activities take place in our own operations, but we increase the impact of our efforts by working together with our suppliers and clients. For example, in transport: to keep logistics efficient and to reduce transport we have our barley delivered directly from the farm to our plants. As a malt company, we transport and store grains and produce malt for use in beverages and food. We supply the malt to brewers and distillers all over the world. Agriculture: farmer and Malting Brewing raw materials Transport Transport ambitions 8 CSR CSR Managing Board Our governance General & Commercial, finance & production We take CSR seriously, that is why it is the responsibility of our CEO Production Quality & Commercial Jos Jennissen. He ensures effective governance and guarantees the Manager Tecnology Affairs most attention is given to the implementation of our refined CSR strategy. He ensures that important topics are addressed and he also participates in many stakeholder discussions. Furthermore, he Production Production takes part in internal initiatives and activities regarding sustainable Lieshout Eemshaven employability and guarantees that our people work in a productive, motivated and healthy way. Silo Manager Silo Manager Process Process technologist technologist To support Jos Jennissen on a tactical and operational level, Martijn van Iersel, our Manager Quality & Technology, takes care Malting Technical Malting Technical Housekeeping Housekeeping of the proper implementation of all CSR activities. Our Production Operators Service Operators Service Managers in Lieshout and Eemshaven maltings are responsible for plant-related CSR matters (i.e. for energy, HR and purchase decisions). Our CSR governance is not restricted to the boardroom level or an isolated staff department: it is vertically embedded in the organisation and responsibilities are given to those functions that have the largest impact and influence on specific actions and outcomes. Below you can find the organogram of our organisation. CSR is also part of our company management system. To continuously improve our quality and ensure food safety, we have set up our management system according to ISO 9001 and are ISO 22000 certified. Our management system is also in accordance with ISO 14001, but is not certified as such. A responsive attitude towards complaints and suggestions for improvement is crucial to us. We take all complaints very seriously, investigate each case thoroughly and find the best solution. Finally, we enable all our employees to act in line with our principles. All employees sign our company code when they start their career with us. By integrating CSR in our governance, management and reporting systems, we are structurally and continuously seeking to improve our processes and CSR performance. 9 CSR ambitions CSR Working together 10 Listening to our stakeholders We want to engage in an active dialogue with all our key stakeholders: all parties that are impacted by our activities and all parties that can help us in realising our CSR ambitions. Our key stakeholders are: clients, customers, employees, farmers, shareholders and governmental & certification bodies. Contract Checks clients customers employees farmers shareholders governmental & certification bodies We list all our key stakeholders, monitor how we are in contact with them, what the output of the engagement is and to what extent we take action based on their feedback.