OUR COMMITMENTS TO YOU AND TO FUTURE GENERATIONS ANNUAL REPORT 2018 4452 BRO COR Sustainability 2018_EN_v3.indd 1 3/05/19 09:57 ANNUAL REPORT 2018 02 4452 BRO COR Sustainability 2018_EN_v3.indd 2 3/05/19 09:57 OUR COMMITMENTS TO YOU AND TO FUTURE GENERATIONS CONTENT Letter from the Chairman and CEO .............................................................................................04 Introduction .......................................................................................................................................05 Health & Well-Being ........................................................................................................................15 Responsible Sourcing .......................................................................................................................19 Planet .................................................................................................................................................31 Heritage .............................................................................................................................................37 People .................................................................................................................................................43 Communities .....................................................................................................................................51 03 4452 BRO COR Sustainability 2018_EN_v3.indd 3 3/05/19 09:57 ANNUAL REPORT 2018 LETTER FROM THE CHAIRMAN AND CEO Sustainable entrepreneurship has been high on the agenda of the Puratos Group and it runs as a red thread through our operations. We aim to embed our social responsibilities into our entire value chain, going from the sourcing of raw materials up to the use of our products by customers and consumers. We are conscious about the numerous challenges our society is facing. That is why we encourage all initiatives and actions which help us to become a more sustainable company so we can transform these challenges into opportunities. We actively want to play a role in resolving issues related to health and well-being, responsible sourcing and the environment, for our employees, customers and suppliers. As shown in this report, Puratos is committed to being a socially responsible company and a reliable partner for all its stakeholders. Thanks to the model of our vision, we are convinced that more and more consumers are attaching importance to the sustainable impact of their food. Our corporate social responsibilities (CSR) commitments, which we call our commitment to you and the next generations, are set out in six connected and inter-dependent chapters: health and well-being, responsible sourcing, planet, heritage, people and communities. The decision to work on these six pillars is based on the interactions over time with our customers, suppliers and other stakeholders. Every year we gain more and more experience and clear objectives have been set for the future, such as becoming carbon neutral by 2025 and water-balanced by 2030. Other areas are yet to be defined but are constantly evolving, supported by dynamic and motivated teams. Every Puratos employee is an integral part of this approach, in the 71 countries in which we are present with a subsidiary, in each department of our organisation, irrespective of the level of responsibility. Each of us plays a role in the pursuit of this CSR approach, for the benefit of the environment and our planet, to improve the nature of our products through supply, composition and heritage, and for the benefit of us all – employees and communities in which we work. Together we make this “Puratos Magic” work for the benefit of all. Eddy Van Belle Daniel Malcorps Chairman of the Board of Directors CEO Puratos Group Puratos Group 04 4452 BRO COR Sustainability 2018_EN_v3.indd 4 3/05/19 09:57 OUR COMMITMENTS TO YOU AND TO FUTURE GENERATIONS INTRODUCTION Our Sustainability Strategy For nearly 100 years, and as a family company, Puratos has always valued ethics and the well-being of its personnel and customers. These historical principles are reflected in our commitment to the next generation. In order to transform our world by 2030, companies are constantly reminded that they should balance all their objectives between the five pillars of sustainability: People: we are committed to creating a safe and respectful environment in which every one of our stakeholders feels valued; Planet: we want to reduce our carbon and waste footprint and have a positive impact on the whole ecosystem; Prosperity: we want to contribute to the prosperity of our society by building a sustainable and prosperous future; Peace: with our positive view on society and values such as ethics and courage, we want to create a meaningful difference; Source: Twitter account UN Sustainable Development Partnerships: we choose to work with reliable partners that will help us to achieve our sustainable goals and objectives. 05 4452 BRO COR Sustainability 2018_EN_v3.indd 5 3/05/19 09:57 ANNUAL REPORT 2018 Based on these principles, Puratos committed itself to six sustainable pillars: Health and Well-Being, Responsible Sourcing, Planet, Heritage, People and Communities. Below you can find our sustainability framework, which outlines these six pillars, as well as the following elements: Our stakeholders: they are very important to our organisation. Therefore we have included them in the centre of our framework. Our 6 sustainable pillars. How our 17 material topics are linked to our 6 sustainability pillars. How our flagship projects are linked to our 6 sustainability pillars. Long freshness of bread 4 Carbon neutrality Water management Food waste Bakery Schools Non-food waste 3 Sustainable raw materials Fruit supply Chunca plantation Ethical suppliers Planet Cacao-Trace™ Chocolate Bonus 2 Responsible sourcing Education Farmers livelihood 1 Job oportunities Our stakeholders Communities Employees Communities & societies Customers & consumers Employee health & safety Suppliers Business ethicsEmployee and culture learning & People Shareholders & investors Government development Creditors Health & Well-Being Heritage Puratos Magic Family Food quality & safety Sensobus & Nutritional value of food development Taste Tomorrow Healthy diet awareness Puratos University Traceability / Clean(er) food Preservation of Sustainable innovationKey & product principles for bakery culture Health and Well-Being Chocolate Museum Sourdough Library 06 4452 BRO COR Sustainability 2018_EN_v3.indd 6 3/05/19 09:57 OUR COMMITMENTS TO YOU AND TO FUTURE GENERATIONS The Puratos Group has a strong commitment towards the next generation in our daily business, which is reflected in our objectives and performances. HEALTH & WELL-BEING Our performance in 2018: Our main objectives: • We used 14.777 tonnes of fruit • Further decrease sugar, salt and saturated fat; (+15% compared to 2017); • Increase fibre-rich grains, nuts, seeds and fruits; • We used 35.378 tonnes of cereals and grains • Offer alternative clean(er) label, organic, gluten- (+8,5% versus 2017); free, plant-based solutions. • We removed 7.152 tonnes of fat which equals 7.152.000 bottles of oil (+15% compared to 2017); • We removed 372 tonnes of salt which equals 25 x 15 tonne truck loads (+7% compared to 2017). RESPONSIBLE SOURCING Our performance in 2018: Our main objectives: • 26,3% of our purchased cocoa was sourced in • Favour raw materials, packaging, equipment a sustainable way (+3,48% vs 2017) of which and services that are environmentally friendly, 10,58% was through our audited Cacao-Trace™ benefit society, and give value for money over programme (+2,19% vs 2017). their lifecycle; • Favour suppliers who share our vision of sustainability and who work towards maintaining a more sustainable supply chain. PLANET Our performance in 2018: Our main objectives: • Net emissions 99.000 tCO2 equivalent in 2018 • 2025 – make our direct operations carbon » 14% net CO2 reduction in 2018 compared to neutral; previous year (15.000 tCO2e less than 2017); • 2030 – have a balanced and sustainable water » Used 50% renewable electricity in 2018 (saving management by reducing our own water 21.000 tCO2e compared to business as usual); consumption and improving the quality of our » Our energy efficiency has improved by 8% since water discharge. 2012 (saving 10.000 tCO2e per year). • Water usage 1.8 billion litres (8% as ingredient) » Water efficiency improved by 2% since 2012 (saving 42 million litres of water per year); » +6% water used safely recuperated (10 million litres saved). • Waste reduction » 6.630 trees, 9.75 million litres of water and 1.1 million litres of oil saved by improving our bags used to pack powder products. 07 4452 BRO COR Sustainability 2018_EN_v3.indd 7 3/05/19 09:57 ANNUAL REPORT 2018 HERITAGE Our performance in 2018: Our main objectives: • 115 sourdoughs of 20 countries are stored in our • Through our sourdough library we want to physical library in St. Vith; preserve the traditional way of making bread. • 1.441 sourdoughs from 1.187 cities are registered Sourdough gives a unique taste to bread that is in our digital library since September 2016. different all around the world. We see it as our responsibility to keep this tradition alive. PEOPLE Our performance in 2018: Our main objectives: • We organised 2.936 training days worldwide for • Make every employee feel part of the Puratos our business development community (+33% Magic Family. compared to 2017); • Between