La nature, notre futur

Transcription

1 La nature, notre futur INTERVIEW We are tirelessly moving forward in our corporate project. Christophe, Group Chairman P03 FOCUS We contribute to a sustainable agriculture. P14 PORTFOLIO Every day, we focus our strengths on making a difference. Immersion: Our commitments in the face of climate change. P Business and Corporate Responsibility Report FOLLOW US ON

2 All humans have a responsibility to nature. We are facing an immense challenge: By 2050, there will be nine billion of us on the planet. In order to live in a The wealth of nature P04 05 not be hungry, Interview with C., Chairman, and G. Debrosse, Chief Executive Officer P02 03 world where everyone is able to eat healthily and 2,777 million euros in revenue in ,000 permanent employees > 128,000 hectares cultivated around the world excluding Fresh Americas (BFA)

3 Business and Corporate Responsibility Report High quality products P08 09 nature must be preserved and respected. We must mobilize all of our creativity and capacity for innovation to produce food that is more respectful of the land Respect for partners P14 15 and people. Because nature is our future. The spirit of innovation P ,100 farmer partners (excl. BFA) 500 vegetable varieties FIND OUT MORE AT FOLLOW US ON

4 02 La nature, notre futur We are relentlessly moving towards our ambition to be the world reference in well-living through plant-based food. With a total commitment every day: to respect nature. Two perspectives from Christophe, Chairman, and Guillaume Debrosse, Chief Executive Officer Left, Christophe, Group Chairman. Right, Guillaume Debrosse, s Chief Executive Officer FIND OUT MORE AT

5 Business and Corporate Responsibility Report G. D. Faced with the many challenges that await us, one of my first actions was to set up three new divisions: Europe, Americas, and Finance & Development. This new organization maintains the principle of five independent business units, while fostering collaboration between them and synergy in the main geographical regions. C. B. More than ever before, we are in a position to achieve our ambition to be the world reference in 'well-living' through plant-based food! What is your view of the group s results? Christophe Despite unfavorable foreign exchange conditions and sluggish consumption, the consolidation of Ready Pac Foods gave our revenue a 21.4% boost to 2,777 million euros, with operating profitability of 19% at 119 million euros. Guillaume Debrosse The market shares of the and Cassegrain brands are growing, thanks in particular to our innovation strategy as evidenced by our Légumiô and VeggissiMmm! ranges. C. B. Following on from our VegeGo! 2025 transformation plan, launched in 2012, these positive signs confirm our strategy, which combines external and organic growths, expansion of our product range, and opening up to international markets. Today the group has a new slogan: La nature, notre futur. Why? C. B. Respect for the land and for people is a value the group has espoused since it began in 1853 as has our family. We strive to combine progress and respect for nature, which is a more critical issue than ever for our whole society. G. D. Nature is threatened by climate change, soil depletion, and loss of biodiversity... And as we will have to feed nine million people by 2050, we are striving to promote agriculture that is increasingly efficient, ecological, intelligent, and inclusive. C. B. This slogan, which we will use in French in all countries, embodies our commitment, our heritage, and our ambition. Nature is our most precious resource: every day, the controlling shareholders and employees of the Group endeavor to preserve it and to build a better future with plant-based food. Speaking of which, where are we with VegeGo! 2025? G. D. Halfway there, but on a very good path! While the current conditions will occasionally limit the group s growth, we are more confident than ever of achieving our objectives of 3.5 billion euros in revenue and 7% operational profitability in C. B. And successfully completing the 22 progress initiatives launched as part of the VegeGo! Plan. That s why we decided to change our governance starting on July 1, 2018: Guillaume has been appoint - ed Chief Executive Officer and I am continuing as Chairman of the group s Board of Directors. The Prospective & Development division, the group s innovators, allows us to be full actors in our future. Christophe, Group Chairman

6 04 La nature, notre futur Soil is a treasure trove and biodiversity is essential to human survival. Our fate is bound up with nature s. We must all take action for our shared future hectare will feed 6 people* hectare could feed 4 people* hectare could feed 2 people* * B. Parmentier, Feeding Humanity Six production facilities near an area of outstanding fauna or flora 1,299 different varieties tested in

7 Business and Corporate Responsibility Report Soil protection Agro-ecology aims at transforming agriculture and developing food systems to make them more sustainable. No genetically modified organism (GMO) seed varieties 73% of farmers limit the use of inputs on their farms

8 06 La nature, notre futur Accelerate the ecological transition Because the soil is a living medium from which we all benefit from, we are promoting an agro-ecological model that is increasingly in phase with nature. Pilot water management To reduce its water consumption, the Novotitarovskaya (Russia) site assess - es its own water management with a metering plan, network identification, and daily monitoring of use. Limits on inputs Plant cover, antiinsect netting... To protect biodiversity, we are choosing natural or mechanical techniques to fertilize and combat disease and parasites. The agroecological transformation Changes in the environment demand that the agricultural world reconsider the way it balances health, productivity, and preservation of resources. Furthermore, transitioning to an agroecological model that is in harmony with nature and protective of biodiversity means reclaiming the land. Seven challenges with a single objective Our approach involves seven challenges: achieving zero energy waste; conserving water resources; waste management; having a longterm management plan and vision; producing responsible packaging and fighting against food waste; optimizing our transport flows; and purchasing responsibly. FIND OUT MORE AT BONDUELLE.COM/EN/SUSTAINABLE-DEVELOPMENT 264 professionals of the Agronomy Department are supporting producers in developing alternative cultivation techniques. Focus on the Waste management objective 100% of green waste is recovered for animal feed, composting by sale or agricultural spreading.

9 Business and Corporate Responsibility Report s major agro-ecological principles are simple: we work in harmony with nature in order to protect it. 07 Award for environmental reporting In 2017, was recognized by the French Ministry of the Environment and the ADEME for the exemplary envi - ronmental section of its CSR report. Our commitments 4 separate technologies allow us grow more than 30 different vegetables, which by themselves represent nearly 500 varieties, guaranteeing access to plantbased food in more than 100 countries. Source: 2018 registration document

10 08 La nature, notre futur From field to plate, we are working to improve the quality and flavor of our products. We are convinced that it is essential for everyone s health. 88% of people questioned would agree to pay more for healthier food. Source: Forbes, Nielsen poll 100% of sites have quality certification 64,688 security analyses were performed (on fresh, prepared, frozen, and canned foods) 99% of phyto and TME tests were compliant (purchasing)

11 Business and Corporate Responsibility Report Short supply chains A process that respects nature and people and that allows us to imagine new ways of producing, transporting, and consuming. 132 farmer suppliers of the Fresh Europe business unit benefit from an insect surveillance network 64% of farmer partners have adopted the fertilization method recommended by

12 10 La nature, notre futur Toward healthier, more natural food Becoming the world reference in well-living through plant-based food takes place through our recipes, but also through our preparation methods. Processing without preservatives Informing consumers We offer NutriScore nutritional labeling on our French product packag ing to keep consumers well informed. 100% of production sites have at least one type of quality certification. Source: 2018 registration document Our plant-based foods are preserved solely by the temperatures used in their preparation: 30 C, then 18 C for frozen vegetables; + 1 C to + 4 C for bagged salads or salads in containers; a few minutes above 130 C for canned vegetables. Whether it s frozen broccoli or canned beans, we wait until products are fully ripe to harvest so they are at the peak of their qualities. And to preserve all those qualities, we choose local produce. FIND OUT MORE BONDUELLE.COM/EN/ SUSTAINABLE-DEVELOPMENT/IN-THE-FIELDS Keeping it natural To preserve all their natural qualities, taste, colors, and textures, all of our vegetables are sorted, washed in water, and mechanically or steam peeled. For freezing or canning, vegetables are water or steam blanched. FIND OUT MORE AT BONDUELLE.COM/EN/ Food for Good Our commitment: to promote plantbased foods as tasty and enjoyable, and being totally transparent with consumers about our highquality, traceable, and natural products.

13 Business and Corporate Responsibility Report At, we think through our production processes so that the vegeta ble that reaches the plate is as close as possible to the one you would eat in the field: shorter transport time, minimal handling, and natural preparation and preservation processes months of the year: this is the average operating time for a canning or frozenfood plant, in step with the seasons.

14 12 La nature, notre futur Each day, women and men work side by side with us for the well-living of all. With them, we are constantly improving our model, in respect of our values. 82% of farmers say they frequently or always include sustainablefarming principles in their practices. Source: Ipsos ,293 tonnes of food donated (France, Italy, Poland, Hungary, Canada, USA), in key CSR indicators divided into four areas for assessing suppliers

15 Business and Corporate Responsibility Report Best practices As guardians of the soil and the products, producers are the keystone in sustainable agriculture. We must listen to them. 93% of farmers renewed their contract (in ) 12 years is the average seniority of employees 207 projects supported by the Louis Foundation

16 14 La nature, notre futur Acting with and for upstream agricultural activities Because the land is essential to what we do, we are developing our agronomic know-how and sharing it with our employees and our partners. Growing together Through the Fresh We Up program, the Fresh Europe business unit has established three pillar ambitions to refresh the ways in which our employees work together: freeing up energy, set ting standards for innovation, and promoting a sustai nable and agile organization. 72% of our employees, on average, are given evaluation and development interviews every year. Source: registration document Our farmer partners maintain their indepen dence while benefiting from s agronomic know-how. Ensuring the 'well-living' of employees and local communities This is a simple longterm macro-objective, one that can be communicated and follow ed up on each year by our Group Management Committee (GMC). It involves promoting employee commitment and developing local community initiatives for our sites, with at least one societal project per establishment, without forgetting the fun damental target of zero workplace injuries. FIND OUT MORE AT BONDUELLE.COM /EN/ Generating a positive local impact Participating in local life is one of our priorities. The aim of VegeGo! is to develop at least one project with local actors on every site. This helps motivate employees and makes for better living in local communities.

17 Business and Corporate Responsibility Report has built an exemplary structure based on a sourcing model with two major sources: producer organizations and cooperatives % of farmers have signed our Agronomic Sourcing Charter ( )

18 16 La nature, notre futur We put all our creativity and spirit of innovation into reinventing food for the future. The global market segment of plant-based proteins 5.5% growth per year by 2020 Source: Xerfi Group, 2018 study 46% recycled materials in our packaging 100% of -brand products are evaluated by Visa Santé, our nutrition charter

19 Business and Corporate Responsibility Report Agricultural sector The agricultural sector is intrinsically entrepreneurial. Its innovations are aimed at being competitive, sustainable, and understood by society. 100% of the newest innovations in the group are fully plant based (Légumiô, VeggissiMmm!, and FortissiMmm) 1,158 products have been tested to determine whether they met nutritional recommendations

20 18 La nature, notre futur Innovating for nature and people Whether for products or packaging, innovation is our nature. The Protein Awards The Group is a partner to the plant-based protein innovation awards for Startups initiated by Le Village by CA and aimed at startups that innovate in the field of plant-based proteins. Recipients of the award will be able to acce lerate the development of their business. 258 vegetable recipes have been improved since 2009 Source: registration document Innovating at every step Our R&D activities cover areas from agronomy to consumers to preparation and production processes. The Maison de l Innovation In 2018, following the 2016 creation of the Fresh Europe Innovation Center in Saint-Priest (France), Europe Long Life opened the Maison de l Innovation at its headquarters in Villeneuve d Ascq (France). Focusing on innovation, development, and research, this new space encourages collaborative working methods, agility, and co-construction. FIND OUT MORE AT BONDUELLE.COM/EN/ Plant-based proteins in the spotlight We are constantly innovating to offer our consumers 100% vegetarian alternatives that are complete and balanced in all their forms: in France, Légumiô pastas made from 100% pulses and vegetables; in Benelux, frozen pulses; in Italy, organic veggie burgers, etc.; we bring all these innovations to the table.

21 Business and Corporate Responsibility Report offers 4 technologies: canned, frozen, fresh-cut salads, and prepared salads. Our R&D centers daily mission is to invent the concepts, products, and recipes of tomorrow. 19 At, the Research & Development Department relies on: 100 employees who share their business expertise 6 development centers around the world. Source: registration document

22 20 La nature, notre futur Our organization Our organization has changed since Guillaume Debrosse took office as Chief Executive Officer in July FIND OUT MORE AT BONDUELLE.COM/EN/ Chairmanship Christophe Chairman Chief Executive Board Group Management Committee Guillaume Debrosse CEO Daniel Vielfaure Deputy CEO Americas Philippe Carreau Deputy CEO Europe Grégory Sanson Deputy CEO Finance & Development Mary Lane Thompson Chief Executive Officer BFA Mark McNeil Chief Executive Officer BALL Pascal Bredeloux Chief Executive Officer BFE Jean- Christophe Sibileau Chief Executive Officer BELL Grégory Sanson Chief Financial Officer Benoît Head of Prospective & Development Division Ekaterina Eliseeva Chief Executive Officer BEAM Anne-Sophie Fontaine Head of External Communication and CSR Bruno Rauwel Head of Human Resources

23 Business and Corporate Responsibility Report A new governance promoting cross business units collaboration and synergies in the major geographic areas while maintaining our business units autonomy. 21 Europe Long Life Fresh Europe EurAsia Markets Fresh Americas Americas Long Life 6 brands Canned and frozen vegetables, Cassegrain, private labels for massmarket retailing and food service. Ready-to-use fresh vegetables Bowls, bagged and prepared salads,, private labels for mass-market retailing and food service. Canned and frozen vegetables in Russia and other CIS countries, Globus for mass-market retailing. Fresh fruit and vegetables Bowls, salads, snacks, and fresh-cut fruit, Ready Pac Foods, Bistro, Ready Snax, and ElevAte, private labels for mass-market retailing and food service. Canned and frozen vegetables and Arctic Gardens, private labels for mass-market retailing and food service. Canned fruit Del Monte.

24 22 La nature, notre futur Financial indicators Revenue In millions of euros 1,968 2,288 2,777 Breakdown of revenue By region /06/ /06/ /06/ Current operating income In millions of euros /06/ /06/ /06/30 2 Net income In millions of euros USA 37% 2 France 22% 3 Canada 10% 4 Southern Europe 8% 5 Germany 8% 6 Eurasia (1) 6% 7 Northern Europe 5% 8 Central Europe (2) 2% 9 Other 2% (1) Russia and other Commonwealth of Independent States (CIS) countries ; (2) Eastern European countries that have joined the European Union. 2016/06/ /06/ /06/30 By brand Brands s shareholder structure Other families % Employees and treasury stocks 4.70 % Other 5 % By segment Fresh 51 % Private label brands 44 % Frozen 22 % Limited partner Free float 42 % Canned % % 36 %

25 Business and Corporate Responsibility Report Societal indicators 23 Caring for cultivated land 3,100 farmer partners.* Encouraging people to eat healthily and sustainably while increasing affordability 207 projects supported by the Louis Foundation in 10 years, and 64,688 food safety analyses performed on products.* Reducing environmental impacts from field to plate 11.7% of the energy mix comes from alternative energy, a total savings of 7,531 tonnes due to the use of nonroad alternative transport. Ensuring the well-living of employees and local communities 72% of employees have had career evaluation and development interviews this year. 24 sites began or renewed a project in connection with their local communities. Everyone involved in #Tomorrow at! 70 employees committed to the program, which consists of accompanying and training people with a project in the field of sustainable development. 1,100 employees members of the B!Green community. * Excluding Fresh Americas FIND OUT MORE AT BONDUELLE.COM/EN/

26 24 La nature, notre futur UN Sustainable Development Goals In 2017, defined its participation in the United Nations SDGs, which aim to eradicate hunger and poverty by 2030, whilst acknowledging the equal importance of human development and saving our planet. 6 shared objectives Life on land Protect ecosystems and put an end to soil degradation Zero Hunger Ensure sustainable food production systems and implement resilient agricultural practices Clean water and sanitation Reduce water pollution and ensure sustainable mana ge ment of water resources Responsible consumption and production Sustainably manage natural resources and reduce waste production Decent work and economic growth Adhere to international labor commitments and ensure health and safety at work Affordable and clean energy Improve energy efficiency and the share of renewable energies These global objectives naturally offer s CSR initiative a new perspective. The group thus confirms its ambition to play its role in building a more responsible world by creating the sustainable plant-based products of the future. In this perspective, we have redefined our road map to achieve our CSR macro-objectives by 2025: Care for cultivated land with our famer partners; Reduce our environmental impact, from field to plate; Encourage as many people as possible to eat healthily and sustainably, while increase affordability; Ensure well-living for employees and local communities; Encourage all employees to take part in the CSR strategy. FIND OUT MORE AT BONDUELLE.COM/EN/

27 Business and Corporate Responsibility Report VegeGo!, the corporate change plan for 2025 Co-devised in 2012 by employees, the group s Executive Management and family shareholders, the VegeGo! Project had defined the shape of the group towards 2025 around our priorities. Our ambition: to be the world reference in 'well-living' through plant-based food. 25 VegeGo! in 4 pillars Encouraging everyone to realize their full potential Developing our brands and vegetables in all their forms Putting customer service at the center of our organization Respecting the planet and our social commitments Through VegeGo!, these four ambitious objectives for safety and profitable growth have been defined: Revenue 3.5 billion revenue 250 million current operating income 0 workplace accidents with lost time 12.5% i.e 5% more per year.

28 26 La nature, notre futur Every day, we focus our strengths on making a difference Faced with climate change, the Group s employees and farmer partners are showing the way every day through our commitment to nature. Immersion New technologies are revolutionizing sampling and agricultural observation A common passion: the soil and what it offers. 04 Quality and taste are our priorities.

29 Business and Corporate Responsibility Report Direct contact with farmers to better accompany them Our quality technicians are guarantors of our commitments. 08 Scrupulous quality control all along the production line.

30 28 La nature, notre futur Nature has warned us countless times in the past to tell us we must wake up to our impact on the planet. We have confidence in our extraordinary capacity for mobilizing when it s primordial to act. Together, we will make a difference. SA Rue Nicolas Appert BP Villeneuve d Ascq cedex France Tel. : Contact Publication Director Anne-Sophie Fontaine Editorial Board Jeannette Lafages and Bertille Choquet Design, production, visuals and iconography M & C SAATCHI Little Stories

31 Rapport d activité et de responsabilité d entreprise Photo credits, Julien Pebrel, Nicolas Blandin, Barbara Grossmann, photo library We would like to thank our farmer partners and our employees for their contributions to this document. FIND OUT MORE AT

32 FIND OUT MORE AT FOLLOW US ON At, we ve been making plant-based food available to everyone for seven generations. We believe it is the key to feeding an increasingly heavily populated world. Nature itself reminds us daily that protecting nature is both urgent and necessary. As a company doing business on every continent, alongside millions of consumers across the planet, we must commit to strong action. And to do this, we strive every day to limit the impact of our activities on the planet. The challenge: to meet the needs of our consumers today and the needs of future generations. It is critical that we protect ecosystems and biodiversity; nature is our common wealth. Nature is our future. bonduelle.com