Sustainability report 2017 of the PHW Group Visbek, December 2017 “The tradition of our family business requires responsible behaviour and sustainable corporate management: Also in the next generations we would like to be provided with the opportunity to continue to manage the company and to develop it further.” Paul-Heinz and Peter Wesjohann Sustainability report 2017 of the PHW Group | Table of Contents Table of contents Facts, figures, and goals 06 Interview Peter Wesjohann 08 Company, goals, stakeholder dialogue 1.1 About this report 12 1 1.2 Transparent and in constant exchange with partners 14 1.3 Clear behavioural guidelines and Ombudsman’s Office since 2013 17 1.4 “Clear sign was set with the ZNU standard‚ ‘sustainable management food’” 18 1.5 WIESENHOF: Guarantee of origin, transparency across all levels 20 Animal welfare and contract farmers 2.1 “Privathof” poultry: Scientifically sustained and independently tested 24 2 2.2 “Consumers are very pleased with the type of farming.“ 28 2.3 Reduction of the use of antibiotics is the core concern of the PHW Group 32 2.4 Stringent control system 34 Environment and production 3.1 Modern energy management: Reduce consumption, promote green electricity 38 3.2 CO footprint: WIESENHOF even more climate-friendly 40 3 2 3.3 Poultry slaughtering: By-products are fully recycled 42 Raw materials and feed 4.1 Sustainable soy meal 46 4 4.2 On the finishing strait with palm oil 49 Social responsibility 5.1 Service contract employees: PHW Group is at the forefront of voluntary self-commitment 52 5 5.2 Many sites set social statements 54 5.3 Social commitment in Rietberg: The “Kiebitze” are on the loose! 55 5.4 20 years of futurology 56 5.5 WIESENHOF Football school: Fun on the move, joy in fairplay 58 Matrix: ZNU/GRI – Imprint 6.1 Overview: GRI guidelines and ZNU standard 62 6 6.2 Imprint 67 5 Facts, figures, and goals Heart: The PHW Group works with Until the end of 2018, around 1,000 self-employed partner farmers, who, according to WIESENHOF requirements, rear chickens, turkey or ducks. 60 percent of German production should come from an animal welfare concept . Corporate central laboratory in Lohne 6 Locations In 2016, 42,000 samples were examined are certified in accordance with there and about 210,000 analyses carried the ZNU-Standard “Sustainable out. In addition, there were 180,000 microbiological management food”. analyses. By 2025: Use of From poultry oil to bio fuel 100 percent 350 lorries of the PHW Group of green electricity companies and other forwarding in the companies certified agents run on SP-Power. according to the ZNU-Standard The poultry house - an Chicken feed antibiotics-free zone: Growing proportion from By 2020, the absence of antibiotics domestic sources in the poultry houses of the partner of proteins farmers should be at 70 %, currently it is at around 65 %. (* Rem.: The use of antibiotics on sick animals is prescribed by law and is carried out in accordance with veterinary indication.) Sustainability report 2017 of the PHW Group | Facts, figures, goals WIESENHOF is the first company in the poultry sector that has determined its Until the end of 2018: CO2 footprint Reduction in fuel for chicken meat along the consumption entire production chain, of the own fleet by incl. logistics to the trade customer. 5 percent The film thickness of film bags has been greatly reduced. Diversity for the young: Thanks to this, PHW saves Within the entire PHW Group 131 tons 20 of plastic per year. different apprenticeships and dual degree programmes are offered. Since 2013, so far 22 sustainability audits From 2016 to 2017, the training rate in the PHW have been carried out successfully according to Group increased by 30 percent. ZNU standard “Sustainable management food”. (status November 2017) Thanks to reducing the thickness of the copy paper in the entire PHW Group, 32 % wood and after use 6 % Since 2016, the entire waste are saved additionally. PHW Group has implemented a certified holistic energy management system according to DIN EN ISO 50001. 31 Bavarian companies Every year, the PHW Group saves 8,000 tons of CO emissions, rear WIESENHOF Privathof 2 2 poultry. Ten more are in the since 80,000 m of roof surfaces of farms planning stage until 2018. and factories are covered with photovoltaic modules . 7 “We must never stop getting better.“ Peter Wesjohann, CEO of the PHW Group Mr Wesjohann, how do sustainability and poultry in animal feed in the past years, and we are dealing meat production go together after all? Critics of the intensively with alternative protein components. And, meat industry consider this a contradiction. last but not least, we use the slaughtered animal in its Peter Wesjohann: In society, there is an increasing entirety. This is also sustainable. debate about the consumption of meat. It often is a question what environmental effects does so-called Why did you draw up a carbon footprint in 2009? mass animal husbandry have. For years, we have been Peter Wesjohann: We have drawn a product carbon dealing very intensively with the effects of the poultry footprint (PCF) for one kilogramme of chicken, turkey meat production. We are the first and so far the only and duck meat, since we wanted to know the status company in the meat industry that is certified at six quo, thus the extent of the CO2 emissions that is locations according to the cross-industry standard created during the production of poultry meat at “Sustainable management food”. This shows that we are different levels. Derived from this, we set goals for serious about sustainability. We exchange information ourselves and derived measures how we can reduce the with all relevant stakeholders, we are active agents of emissions. change and also communicate the same. Mr Wesjohann, do you see yourself therefore as And yet you constantly need to justify your actions? pioneer in the field of sustainability in the poultry Peter Wesjohann: This is also partly because often industry? there are no black and white discussions in public. Peter Wesjohann: At least many view us as such. We However, this does not help us in the animal husbandry are active agents of change that is oriented towards our sector. The production of all vegetable and animal foods sustainability goals. Greenhouse gas emissions are here requires the use of resources: soil, fertiliser, water, an important indicator and influence quantity, but by no feed or also energy. The global consumption of meat of means everything. The forms of animal husbandry per different categories – whether organic or conventional se are the most important field of activity for us. Here I – obviously effects the environment and the type of see ourselves as pioneers. animal husbandry. A statement often made in this context and that I do not share is that the so-called factory farming is not sustainable in itself. Today’s poultry farming cannot be compared with the one of 20 or 30 years ago. Today the animals are healthier. Fewer resources per kilogramme of poultry meat are needed. In our case, we added: We were able to lower even further the already very low proportion of soy meal Sustainability report 2017 of the PHW Group | Interview To what extent? Emissions and the consumption of resources are Peter Wesjohann: Long before animal welfare seals the focal point among the total of around 15 goals were created in Germany, we were on the market with and sub-goals. We have clear objectives when using poultry products from alternative farming practices. We antibiotics in the poultry houses of the partner sold organic products, marketed the “Weidehähnchen” farmers. In the social field we contribute intensively to (pasture chicken) in Bavaria and developed the the implementation of self-commitment of the meat “Privathof” concept in 2011. Initially, this concept was a industry and the improvement of working conditions. niche, however, step by step it is growing out of it. In January 2013, WIESENHOF “Privathof” poultry was Under the label WIESENHOF you are now marked by the “Deutscher Tierschutzbund” (German also marketing vegan products. Is this not animal welfare association) with the seal “For more greenwashing? animal protection” (entry level). Peter Wesjohann: No. This is simply the Between 2016 and 2017 we have tripled the amount of entrepreneurial reaction to stronger demand in this animals from so-called animal welfare concepts to 1.5 segment. We see ourselves not only as producer of millions. Currently this corresponds to around 30% of poultry specialities, but also as food manufacturer. the German production of the PHW Group. Until 2018 we would like to increase this percentage to 60%. What other sustainability objectives does your company aim at? Peter Wesjohann: Fundamentally, our top priority is sustainable management and permanent improvement of poultry farming. For many years we have been focusing on the requirements of the ZNU standard. 9 1 Sustainability report 2017 of the PHW Group | Chapter 1 – Company, Goals, Stakeholder Dialogue Company, goals, stakeholder dialogue 11 1 1 About this report The PHW Group is a family business in the third Abroad: generation with around 6,900 employees, mainly in • two hatcheries with breeding stock the production and marketing of high-quality poultry • six slaughterhouses and processing plants specialities such as chicken, turkey and duck. (chicken, turkey) The business field of poultry specialities and poultry Other business fields include animal nutrition and breeding with the WIESENHOF brand include animal health,