Our road to sustainability Corporate Social Responsibility Report 2016 Perfetti Van Melle Environmental Living in our Sourcing Other Sustainability Report 2016 Overview Fun and fair Better for you protection communities the taste information Overview This is the first Perfetti Van Melle (PVM) global annual CSR report. The information in the report covers the period from 1 January to 31 December 2016. Perfetti Van Melle Environmental Living in our Sourcing Other Sustainability Report 2016 Overview Fun and fair Better for you protection communities the taste information Overview Index of contents Message from our Group CEO 02 Fun and fair 12 Living in our communities 32 About this report 04 – Being a responsible employer 13 – Our impact on local communities 33 About Perfetti Van Melle 05 – Sharing the fun 17 Sourcing the taste 38 CSR at Perfetti Van Melle 08 – Being compliant 19 – Reducing the environmental and – Our recipe for being responsible 08 Better for you 22 social impact in the supply chain 39 – How we formulate our recipe 09 – Practising responsible marketing 23 Performance data 41 – Who we listened to 11 – Promoting consumer well-being 24 GRI Index 45 – How we ensure that our recipe works 11 – Our position on ingredients 26 Environmental protection 28 – Limiting our carbon footprint 29 – Reducing packaging 31 Production right first time is so important We achieved a that our employees 1.2% local gas are encouraged reduction through to identify waste the use of solar prevention and energy in our reduction opportunities production facility and sort the waste in Breda, Netherlands. for recycling. Read more on p.29 Read more on p.29 01 Perfetti Van Melle Environmental Living in our Sourcing Other Sustainability Report 2016 Overview Fun and fair Better for you protection communities the taste information Overview Message from our Group CEO I am very proud to present the first global Perfetti OUR CONSUMERS “This report Van Melle (PVM) CSR report. We are a multinational We are committed to ensuring the highest possible demonstrates that we confectionery group with a remarkable track record product safety and evolving our portfolio to best of success and growth in the markets in which meet consumers’ lifestyle and dietary needs. are determined and we operate. Consumers’ needs and expectations always guide our progress in product development and passionate about Over the years, we have built a great reputation innovation. New product developments always making CSR part for conducting business responsibly and to high account for a significant part of our global turnover ethical standards. Our priority is to preserve such and much of this value comes from new products of how we conduct a great reputation, as this is crucial to our success that combine the desire for gratification and business on a in the long term. pleasure with the need to reduce sugar intake and ensure the overall well-being of our consumers, in daily basis.” With such a large organisation (31 production both the candy and in the chewing gum categories. facilities, 38 companies and 17,887 employees) we feel the need to give clearer guidance to our people I am proud of the commitment that we are taking and to our stakeholders on the value of integrating in being transparent with our consumers on the CSR practices in both our daily operations and in calorie content of our products: all our sugar-based our decision-making processes. candies and chocolate products will feature information on calorie content per piece. This This is our first structured and systematic approach clear, simple and straightforward information on to CSR on a global level, in previous years we have the product label makes it easier for the consumer reported our CSR efforts, initiatives and programmes to calculate and compare energy intake and make at a local level only. This report gives a more the best choice based on their dietary needs. consistent structure and visibility to the priorities that impact the sustainability of our business globally. 02 Perfetti Van Melle Environmental Living in our Sourcing Other Sustainability Report 2016 Overview Fun and fair Better for you protection communities the taste information Overview Message from our Group CEO continued We are committed to removing artificial colourings OUR PEOPLE This first report will help us better focus our from all our products, both new and existing. It Our employees are our most precious asset. corporate social responsibility strategy for the will be a long and difficult process, as it implies Attracting, motivating and engaging them is years to come. We are conscious that real changes reformulating a large number of products. We the most fascinating and rewarding task for can only occur step by step, we need the support began the process a few years ago and we will management. Perfetti Van Melle benefits and involvement of all stakeholders; suppliers, continue with determination, to reconfirm our from its reputation as a fair employer, but we commercial partners, employees and our commitment to produce and deliver the safest offer more than that at PVM. We have created consumers. This report demonstrates that we are products available for our consumers worldwide. an environment in which passion, expertise, determined and passionate about making CSR entrepreneurship and friendliness thrive. part of how we conduct business on a daily basis. THE ENVIRONMENT & OUR PRODUCTION FACILITIES The report highlights the steps taken and the This project has been an engaging and learning Our manufacturing companies are taking great importance of continuing and improving our experience for those colleagues involved from steps forward in managing their environmental practices to create a fair and engaging work cross-functional and cross-geographical teams, impact. Most of our production facilities are environment for our employees. In 2015, we and I would like to thank them and all my PVM ISO14001 certified, showing our determination conducted our first global employee engagement colleagues around the world for their continued to adapt our organisation and our manufacturing survey which recorded a very positive global score, contribution to ensuring the long-term success processes in a way that minimises our impact on higher than the benchmark for food and beverages of our group, based on concrete and authentic the environment. Energy from renewable sources, companies. In 2017, we will conduct our second socially, environmentally sustainable actions. in particular self-produced bio-gas from effluent global survey and we hope to report further treatment plants, is already in use at a number progress in ensuring that all our employees of manufacturing sites. In this first report, we are can actually “unwrap their potential” at PVM. tracking our manufacturing carbon footprint on a global level. This will enable us to set global OUR COMMUNITIES targets for the coming years. Our operations play a role in the local communities in which they operate. Most communities provide SAFETY & HEALTH our labour force, skills and competencies. We Sameer Suneja Our manufacturing facilities are also making many want to make a difference in those communities, Executive Director and Group CEO efforts to guarantee that Health and Safety receive in terms of supporting local social, cultural top priority action and attention. As illustrated in and medical needs. We have programmes this report, we have taken commitments to ensure and initiatives in place to help and support local that all plants are fully compliant, not only with local communities and the report illustrates some good and international legislation, but also with industry examples. We are keen to continue and further and stringent certification standards. enhance our efforts to really improve the lives of many people living around us. 03 Perfetti Van Melle Environmental Living in our Sourcing Other Sustainability Report 2016 Overview Fun and fair Better for you protection communities the taste information Overview About this report This is the first Perfetti Van Melle The scope of this report covers our global As we move towards a global, integrated and (PVM) global annual CSR report. Manufacturing Operating Companies located coordinated CSR approach, this report allows us to in the following countries: evaluate our Manufacturing Operating Companies’ The information in the report covers current CSR efforts and to plan for the future. As the period from 1 January to this is a global CSR report, we intend to gradually 31 December 2016. PVM is one of expand the scope of this report by including our Italy & South Asia, North West non-Manufacturing Operating Companies. the world’s largest manufacturers Asia Pacific Mediterranean Middle East Central & Eastern Americas region and distributors of confectionery area & Africa Europe This report is prepared in accordance with the Global and chewing gum with 38 Operating Reporting Initiative Sustainability Reporting Standards Companies worldwide. In this report, (GRI Standards): Core. This report is also guided by the GRI G4 Food Processing Sector Disclosures. an Operating Company is the legal China Italy Bangladesh Netherlands Brazil entity for which activities primarily As this is our first report, there are no restatements consist of the production and/or of information and we have not sought external sales of confectionery products. Indonesia Turkey India Russia Mexico assurance. Manufacturing Operating Companies We will publish our next report in 2018 which will cover data and improvements for the 2017 period. refers to legal entities with production Vietnam Nigeria Spain USA facilities only. Share with us your feedback on our CSR practices by contacting [email protected] Sri Lanka 04 Perfetti Van Melle Environmental Living in our Sourcing Other Sustainability Report 2016 Overview Fun and fair Better for you protection communities the taste information Overview About Perfetti Van Melle Our worldwide presence Perfetti Van Melle (PVM) is one of 38 the world’s largest manufacturers and distributors of confectionery 17.8k Operating and chewing gum.