CSR REPORT

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1 CSR REPORT

2 O U R S TA F F 30 OUR ENVIRONMENT 33 O U R S U P P LY C H A I N S 34 OUR PRODUCTS A N D O U R C U S TO M E R S 35 OUR ETHICS 36 OUR REGIONS The CSR 2022 plan approved last year gives sustainability a new dimension. This vital factor for change rests on six pillars: our staff, our supply chains, our environment, our products, our ethics and our regions. The year was marked by intensive work by the teams responsible for finalising and starting the roll-out of our plan, especially in the supply chain sector, but also in the energy, transport, soil protection and responsible procurement sectors. Our corporate and environmental responsibilities will therefore contribute towards the economic and social development of the Group, so that every operator along our supply chains can continue to enrich the regions in which we operate in France and abroad. RESPONSIBLE DEVELOPMENT 28 Since the Soufflet sustainable supply chains programme was launched in 2016, the Group s CSR policy has gradually become one of its strategy pillars. 3

3 MANAGER TRAINING The manager training plan put in place three years ago was again applied. Training was given to the intermediate managers who act as communication channels between site management and operational teams. New aspects, such as change management, are being considered as an add-on to the programme. An initial e-learning training test with a module dedicated to the annual assessment interview was also rolled out. HR COMPLIANCE ABROAD The Group conducted a corporate and HR audit across all foreign subsidiaries with a view to containing extra-financial risks. The objective is to apply best practices under social and HR law based on that audit and to adapt processes to changes in European and international regulations. Most importantly, annual reporting will be set up. CONTINUING SAFETY AWARENESS CAMPAIGN RESPONSIBLE DEVELOPMENT OUR STAFF Several major HR projects have been launched or stepped up, especially in manager training, HR compliance and safety. As always, safety is a priority for Soufflet and it continues to run targeted campaigns to reduce the number of accidents at work. The communication campaign on road hazards and behaviour to avoid behind the wheel continued in 2017, with extra emphasis on the sales teams employed by the Agriculture, Vine and Milling Divisions. The Safety Conduct Visits to the Divisions were extended to CODIR this year. SAFETY: CLOSER INVOLVEMENT OF MANAGERS The measures taken to improve safety at work include manager involvement, risk control assessments and audits. Tools were created for managers to use when interviewing victims of accidents and the safety training module was revised. IMPROVING SITE SAFETY Pilot site safety systems were introduced at three sites (Creil (60), Colombelles (14) and Group head office (10)) to test best practices (access control, video surveillance, intruder alarms etc.). 7, 041 STAFF of which 1,795 non-france. 69, 768 h TRAINING during the year in France. 760 RECRUITMENTS on full-term contracts during the year in France. 171 STAFF with disabilities. SAFERTY Accident figures illustrate that the situation is stable, but differs from one business line to another. Neuhauser has improved since its integration, but its results are still below Group standards / Bakery-Morning Goods-Cakes: a significative improvement Soufflet B-G-C accident at work frequency indices / / / /13 Stability Soufflet Group staff accident at work frequency indices. Total accidents at work and accidents at work with time off work. (Number of accidents at work per 100 staff) / / / / /16 16/ /18 GOOD DRIVER GUIDE A new Good Driver Guide based on national recommendations was introduced to coincide with the road safety awareness campaign. RECRUITMENT APP Pomme de Pain has been experimenting with a new restaurant staff recruitment app since the start of the year. The Corner Job app allows a local job offer to be broadcast immediately and applications to be received just as quickly. The employer can even chat with potential recruits. A tool for today. RESPONSIBLE DEVELOPMENT OUR STAFF 5

4 RESPONSIBLE DEVELOPMENT OUR ENVIRONMENT Environmental protection is taken into account in all Group processes, from resource management and transport through to waste recovery. The need to conserve water resources and the need to cut energy consumption are two major concerns of the Group, whose objective is to cut energy consumption by 10% between now and In order to achieve that objective, the Energy Committee is supporting the Divisions and overseeing research into new solutions and the introduction of energy management systems (ISO certification). Each Division has a trained energy officer in charge of monitoring and improving energy performance indices. All industrial Divisions have obtained or are in the process of obtaining ISO (energy management) certification and new projects are being implemented to reduce their carbon footprint under the CSR 2022 plan. REDUCING TRANSPORT EMISSIONS Transport accounts for between 8% and 15% of the Group s greenhouse gas emissions and is therefore an important aspect of the CSR 2022 plan. The transport unit defined indices which will be monitored in the objective of reducing greenhouse gas emissions from transport by 15% between now and The Group capitalised on its sites on rivers and railway sidings by adopting a transport policy that favours river and rail freight. This policy will be strengthened in years to come, despite the fact that floods and serious disruptions to rail freight hit these modes of transport in France this year. CONSERVING WATER, RECOVERING WASTE The Group reduced consumption by 17% between 2007 and 2016 and aims to achieve a further significant reduction in consumption. This mainly applies to the malting business. Thanks to new equipment to improve the steeping stage, the Kromeríž malt plant in the Czech Republic reduced consumption by 20% over the year. Waste recovery is another vital aspect of Soufflet Group's environmental policy to encourage waste collection and recycling across all business lines. Soufflet Agriculture is a member of the Adivalor scheme, which recovers waste from the food and agriculture industry (used agricultural foil, string, packaging, etc.), and is the top collector of empty drums in France. It increased waste collection by 11.7% over the year. ENCOURAGING SOIL PRESERVATION In order to preserve soil fertility, Soufflet Group launched a soil protection and health unit to implement an action plan to improve agricultural practices and encourage a return to natural fertility. Within the framework of its sustainable supply chains, Soufflet Agriculture is already promoting and developing inputs suited to controlled farming and encouraging crop diversification. The Division continues to run the SoilTeQ soil conservation scheme in Eastern Europe and its technical department is testing new treatment and fertilisation solutions (new techniques for nitrogen modelling protocols, robot weeders etc.). Soufflet Vigne continues to run mating disruption experiments to fight moths and caterpillars, as well as the Opt IFT programme to reduce the use of plant protection products. PROTECTING SEEDS BACTERIA-BASED TREATMENT Soufflet Agriculture introduced a new bacillus amyloliquefaciens-based treatment for rapeseed protection as an alternative to thiram, which will be banned in The bacteria multiply to form a protective layer around the roots. 15 % GREENHOUSE GAS EMISSIONS from transport between now and % ENERGY CONSUMPTION between now and ,7 % AGRICULTURAL WASTE COLLECTION by Soufflet Agriculture ( ). RESPONSIBLE DEVELOPMENT OUR ENVIRONMENT 7

5 RESPONSIBLE DEVELOPMENT OUR SUPPLY CHAINS Soufflet Group continues to improve its sustainable supply chains from farmer to consumer by developing new responsible local and organic supply chains. 15 % OF FLOURS in tracked supply. CREATING RESPONSIBLE SUPPLY CHAINS From seed selection to agronomic advice, Soufflet is currently involved with around a hundred farmers. The Group launched Baguépi Farine Responsable, a new range of craft bakery flours, as part of its policy to establish stronger, sustainable supply chains. The 100% French wheat is grown by 400 farmers who must comply with a demanding set of specifications and are supervised by an independent body. The objective is to guarantee good agricultural practice in wheat farming, with no post-harvest treatment, and to produce flour from a mixture of pure wheat varieties selected for their bread making qualities. Soufflet also entered into partnership with Barilla to establish a responsible wheat supply chain with all stakeholders (millers, on-farm buyers, farmers, agronomists, NGOs and auditors) which guarantees quality and traceability along the entire value added chain. EXTENDING LOCAL SUPPLY CHAINS In order to meet the growing demand for plant proteins, Soufflet Alimentaire continued, together with Soufflet Agriculture, to develop local pulse supply chains (lentils in Champagne, Berry and Bourgogne) and launched a new chickpea supply chain in Berry, Yonne and on the Atlantic seaboard. At the same time, Soufflet Alimentaire continues to develop its supply chain for French quinoa produced in Anjou and to test new seeds. DEVELOPING ORGANIC SUPPLY CHAINS Crop practices, from storage of materials through to processing by Soufflet are also helping to establish organic supply chains for wheat, barley and pulses. Following conversion of the silo in Arcis-sur-Aube (10), primarily to cater for organic cereals, the silo in Sacy (89) was also adapted in the run-up to changes to the mill in Lozanne (69), which is already scheduled to go into organic flour production in The enzyme and sourdough production site in Colombelles also obtained organic certification. In barley, organic certification of the roasting unit at Pithiviers enabled Malteries Soufflet to expand its range of organic malts. Malteries Soufflet continues to secure most of its supply of organic barley from Soufflet Agriculture. Finally, Soufflet Alimentaire boosted organic production. Target of 8, 000 T ORGANIC ON-FARM PROCUREMENT of all cereals. PÔLE BAKERY SOUFFLET SUPPORTS SUSTAINABLE SUPPLY CHAINS The Pôle Bakery Soufflet supports the development of sustainable products in the wheat-flour-bread supply chain. The R&D team helped develop Baguépi Farine Responsable and two new organic dry sourdoughs (rye and wheat) for the AIT Ingredients EatOrganic product line. The team also worked on qualitative improvements to doughnuts with a view to launching palm oil-free products. RESPONSIBLE DEVELOPMENT OUR SUPPLY CHAINS 9

6 Given that over 75% of French people* check the origin of the products they consume (1), the Group remains committed to continually improving and guaranteeing the quality of its products across all its supply chains. IMPROVED FOOD SAFETY RESPONSIBLE DEVELOPMENT OUR PRODUCTS AND OUR CUSTOMERS Soufflet is stepping up its action to guarantee the origin of raw materials, food safety and the quality of goods and services. Food safety is a priority for the Group, which stepped up its hygiene and cleanliness specifications. The acceptance threshold was raised by one point for next year and by two points for At present, 84% of production sites have a green zone rating and the average grade achieved from the 223 audits carried out was up 0.6% to Now that Soufflet Agro and Malteries Soufflet are ISO 9001:2015 certified, the other Divisions concerned are gradually switching to this standard. The Biotechnologies Division now has international food safety system certification (FSSC 22000). 100% of Malteries Soufflet sites are ISO 9001 (quality management), (environmental management), (occupational health and safety management) and (energy management) certified. 100% of Moulins Soufflet sites are ISO 9001, and IFS (International Food Standard) certified. A SERVICE CULTURE The Group is available and accessible to customers and ensures that it can guarantee to supply them with the right quantities to the required quality. This service approach was especially important this year in mitigating the serious disruptions to rail freight and river transport. In 2017, Soufflet Agriculture launched its Farmi application to support farmers in their day-to-day work and started a new ACI (Agronomy Advice Innovation) service to help farmers cope with changes and developments in farming. Soufflet Vigne pooled its technical, agronomic and marketing expertise under the Vitivalor Solutions trademark for all its services. (1) Confédération de la Boulangerie - 09/ Olivier Merel / Ifop 11/ % of Soufflet Alimentaire sites are ISO 50001, IFS and BRC (British Retail Consortium Food) certified. 100% of AIT Ingredients sites are ISO 50001, IFS and BRC certified. 100 % des sites classés pour la protection de l environnement (ICPE) du Groupe ont réalisé leur étude d impact environnemental. FOUR QSE COMMITTEES oversee the application of the Group s quality policy. THREE NEW SITES of Moulins Soufflet obtained IFS certification during the year. RESPONSIBLE DEVELOPMENT OUR ETHICS The principles of integrity and responsibility which staff and partners of the Group must comply with have been defined by the new Audit and Conformity Department. Soufflet established an Audit and Conformity Department in response to the latest vigilance, anti-corruption, international financial sanction and personal data protection regulations (1). A reference framework and internal code of conduct were proposed and a personal data protection policy was also put in place. OVERSIGHT OF EXTRA-FINANCIAL RISK MANAGEMENT An extra-financial risks unit was set up under the CSR 2022 plan. The objective is to create a self-assessment benchmark for assessing staff, environment, product, supply chain, region and ethics risks. This benchmark is designed as the precursor to a Group risk management and staff awareness-raising plan. RESPONSIBLE PROCUREMENT AND MARKETING The cross-divisional Responsible Marketing and Responsible Procurement units set up by Soufflet define bases for sustainable marketing that incorporate environmental and social issues and affirm its intention to subject its relations with service providers and suppliers to stricter requirements. These relations are based on business integrity, social and environmental responsibility, transparency and fair competition. PROMOTING SUSTAINABLE FARMING In barley, the Group updated its Producer Charter so that it is recognised by the Sustainable Agriculture Initiative (SAI) platform. Based on an evaluation of 6,800 farmers, Malteries Soufflet was awarded SAI silver level in recognition of efforts by partner farmers in the areas of environmental protection, water conservation and fertiliser management. (1) France applies economic and financial sanctions as a foreign policy instrument. They are designed to prohibit, restrict or constrict trade in target goods, technologies and services and may include measures to freeze the assets of persons connected with the country. RESPONSIBLE DEVELOPMENT OUR PRODUCTS AND OUR CUSTOMERS / OUR ETHICS 11

7 OUR REGIONS Anchoring the Group at the heart of rural regions in France and abroad helps to boost local economies. MAINTAINING LOCAL INVESTMENT Soufflet operates in thirty French counties, helping farmers make changes and supporting the development of the agricultural sector. Soufflet Agriculture's SECUR Harvest scheme, the only one of its kind on the market, guarantees farmers sufficient income per hectare to cover operating costs, irrespective of any random events experienced by the farm. The Group continued to support regional development with numerous investments in storage capacity by enlarging the silos in Pézarches (77) and La Chapelle-Saint-Ursin (18) and reconverting the site in Arcis-sur-Aube (10) for the organic sector. REGIONAL DEVELOPMENT In France, Soufflet contributes 2 per tonne towards investments in railway renovation and maintenance, in order to ensure that the branch lines needed for on-farm procurement in rural regions remain open. Internationally, the establishment and development of supply chains contributes to regional development. Soufflet brings its agronomic expertise to bear in every country in which it operates in Europe and, more recently, in India and Ethiopia, where it runs experimentation programmes and helps local farms to expand. In Central and Eastern Europe, it initiates new crops and runs exchange and training schemes. Following the introduction of the SoilteQ soil fertility conservation programme in 2017, Soufflet Agro launched the PhytoteQ club to provide training in plant protection. REGIONAL ECONOMIC TAXES AND RATES paid in France. 30 Abroad, Soufflet Agro started construction of additional storage capacity in Gorodok (Ukraine) and a hybrid seed station in Romania, and Malteries Soufflet took the next step in its programme to establish a barley-malt supply chain in Ethiopia. FRENCH COUNTRIES Soufflet Agriculture. INDIA INCREASE IN LAND UNDER BARLEY FOR MALTERIES SOUFFLET 2016 : 1,200 ha 2017 : 2,775 ha 2018 : 5,560 ha RESPONSIBLE DEVELOPMENTE OUR REGIONS SUPPORTING FARMERS 11,596, 646 RESPONSIBLE DEVELOPMENT 13

8 FOLLOW US /groupe-soufflet /groupesoufflet Ce rapport Responsabilité sociétale des entreprises est édité par la Direction de la Communication du Groupe Soufflet - Octobre Groupe Soufflet, quai du Général-Sarrail - BP Nogent-sur-Seine Cedex - France Tél.: +33 (0) Fax.: +33 (0) Directeur de la Communication : Claudine Revolio Conception graphique : TalkyWalky Rédaction : WeFactory&CO Crédits photos : Groupe Soufflet, L oeil du Drone, Antoine Buisson, Gabor Chris, Thomas Enguehard, Olivier Frajman, Helena Kadlcikova, Jean-Charles Martel, Philip Martin, AFP Services, Blick Production, Pinkman Productions, Philippe Masson, Philippe Montigny/Filimages, Gilles Rolle, Baguépi Farine Responsable, Fotolia, Shutterstock.