Corporate Citizenship & Sustainability Report

Transcription

1 2014 Corporate Citizenship & Sustainability Report

2 INTRODUCTION Since our Cooperative s founding in 19, we ve taken our lead from our growers who care for their land and trees generation after generation harvesting good fruit for good health. We are committed to fulfilling our mission and living our corporate values daily in order to bring to market trusted, wholesome, quality fruit products and ingredients. One of Tree Top s core values is all about Corporate Citizenship: We are conscientious about our impact on the environment and in our communities, and do what we can to make a positive difference. Tree Top operates competitively in a global environment, but our corporate values are deeply rooted in our small-town heritage. Our culture has always been focused on doing the right thing and being a good neighbor. In 2009, we began publishing our goals, efforts and results so that others, who share our concerns and sense of responsibility, will know where we stand. This report is aimed at addressing the items our stakeholders have determined to be important. Our key stakeholders are our customers, consumers, growers, employees and the communities in which we reside. Tree Top operates eight fruit processing facilities which take fruit from nearby fields and orchards to produce a variety of quality fruit-based products and ingredients. Each facility uses different fruits and methods to produce wholesome products and ingredients. For this reason, comparisons are difficult facility to facility. Our goal is to measure output or production yield versus our consumption of resources. We refer to that measurement as our Sustainability Index. We hope you find this report useful in assessing our commitment and progress toward making a positive difference and taking our company beyond good. MISSION To create on-going value for our customers, consumers and growers through high-performing employees who bring to market trusted, wholesome, quality products. VISION To be the first choice fruitbased company. ABOUT US We are owned by growers and have been for more than years. With our growers fruit we create wholesome products such as apple juice and fruitbased ingredients. We produce delicious juice and apple sauce found under the Tree Top brand at grocery and retail outlets, as well as provide ingredients to 20 of the world s leading 25 food manufacturers, and supply products and ingredients to restaurants and foodservice clients throughout the nation. You likely enjoy our ingredients in your favorite breakfast cereals, toaster pastries, ice creams, yogurts and smoothies. Over the years, Tree Top has acquired well-known fruit-processing and fruit specialty companies in order to provide customers with the widest array of fruit-based offerings available. Our Co-op is headquartered in the rural community of Selah, Washington in the heart of apple country. Our processing facilities located in Selah, Prosser and Wenatchee, Washington are located close to the orchards of our Cooperative s grower-owners to ensure the utmost in freshness and to limit the amount of resources consumed to obtain our fruit supplies. In addition, we operate fruit processing facilities in Woodburn and Medford, Oregon and one in Oxnard, California. The facilities in Oregon and California are also strategically located near soft fruits such as peaches and apricots, and berries such as strawberries and blueberries so we can create the freshest purees, nectars and fillings possible for our customers. Tree Top employs just over 1,000 employees. The Cooperative also owns a small subsidiary located in Bothell, Washington near Seattle. The subsidiary, Northwest Naturals, creates unusual and specialty fruit juice blends and flavors for inclusion in products such as refrigerated organic juice, liquors and coffee drinks. The Co-op has grown over the past five decades from the apple processor known for creating and selling premium, clear apple juice to a fruit processor capable of supplying nearly every form of processed fruit and meeting the strictest quality controls imposed by the world s leading food manufacturers. COMPANY VALUES INTEGRITY We do the right thing, communicating openly and honestly, exhibiting behaviors consistent with our words, and are accountable for our results. RESPECT FOR OTHERS We build strong relationships with growers, employees, customers and business partners based on mutual respect and support, valuing each other s experience, opinions and diversity. LEADERSHIP AT EVERY LEVEL We adapt to our dynamic business environment, address challenges strategically, strive to improve performance and processes and lead by example. SIMPLICITY AND PRACTICALITY We strive for clear, concise communication abiding by few and simple policies, using simple solutions to avoid bureaucracy and complexity. CORPORATE CITIZENSHIP We are conscientious about our impact on the environment and in our communities, and do what we can to make a positive difference.

3 DEFINING SUSTAINABILITY Something is sustainable when it meets the needs of the present without compromising the ability of future generations to meet their own needs. Our growers know the meaning of caring for their land and trees to provide for their families generation after generation and the value of respecting Mother Nature and our Planet. As a grower-owned Cooperative, we share those values and know it s not just about current profits. We believe that it s about People, Planet and Profit. The core principles behind our practices are to: minimize harm maximize benefit be accountable & responsive to key stakeholders support strong financial results In 2009, Tree Top s formal sustainability program was established to ensure goals were created and results documented and reported. A Corporate Social Responsibility Committee (CSRC) led by the company s Corporate Communications Director reports directly the CEO and in turn Board of Directors. The Committee is comprised of a broad spectrum of key people from throughout the organization from manufacturing to executives to R&D and supply chain management. The charter of the CSRC is: To promote social, economic and environmental health through education, influence and action. By listening to stakeholders, including our customers, we determine our primary focus areas each year. Our CSRC targets those areas and helps bring focus to the organization s efforts including observation, data collection, assisting with process improvement plans, monitoring and progress reporting. Below are the primary areas of interest related to our manufacturing facilities (Items I-IV) and our corporate and administrative focus areas: Increase throughputs and yields (produce more, more efficiently) Reduce water use and wastewater Reduce energy use (electricity and natural gas) Reduce solid waste generation (packaging) Employee welfare Community support and volunteerism

4 REPORT ON PRIMARY AREAS OF INTEREST MANY ENERGY SAVING PROJECTS REDUCE WATER USE TOO REDUCE WATER and WASTEWATER For our growers, our production and planet water is of paramount importance and concern. As a processor of fruit, Tree Top uses water to clean fruit, to float fruit from one station to the next and to wash up. Handling more than 300,000 tons of fruit each year requires a lot of water and we continually strive to conserve and treat the water to maintain environmental integrity. All of Tree Top s manufacturing facilities are expected to continually look for ways to reduce water use and as a result, we ve captured and reported thousands of gallons in savings over the past five years. Besides reducing water consumption, Tree Top is proactive about managing its wastewater and Biological Oxygen Demand (BOD) to ensure water returns clean to nearby tributaries and rivers WATER IMPROVEMENT PROJECTS: Careful wastewater management and system improvements on the Selah Campus allowed for the addition of a new fruit sorting facility and an additional packaged goods production line without negatively impacting wastewater treatment facilities. INCREASE THROUGHPUTS and YIELDS Many people have heard of the term carbon footprint which is a measure of the impact our activities have on the environment, and in particular climate change. It relates to the amount of greenhouse gases produced in our day-to-day lives through burning fossil fuels for electricity, heating, transportation, etc. In our business of fruit processing, there are many things we need to measure to better understand our impact and to learn how we may operate more efficiently with the least amount of environmental impact. We ve created a single metric to capture productivity versus resource use, which we refer to as our Sustainability Index. STRAWBERRY AND RASPBERRY GROWERS CERTIFIED SUSTAINABLE ENERGY REDUCTIONS and EXPECTED RESULTS SINCE CSR FOCUS: COMPLETED 27 ENERGY SAVINGS PROJECTS! REDUCING NATURAL GAS USE REDUCES CO2 Continued improvements to reduce wastewater provided capacity for essential manufacturing growth WITHOUT NEGATIVELY IMPACTING WASTEWATER TREATMENT FACILITIES. IN FY14, TREE TOP S DECISION TO PURCHASE RECONDITIONED CONTAINERS WAS RECOGNIZED AS IT AVOIDED 633 TONS OF GREENHOUSE GAS (GHG) EMISSIONS FROM BEING RELEASED TO THE ATMOSPHERE. SOLID WASTE/ PACKAGING REDUCTION Tree Top continually works on light-weighting or reducing the amount of materials used to create packaging while maintaining the quality expected of a premium brand. Intentionally, all of our Tree Top cans and plastic containers are recyclable and none of our plastic containers contain any polycarbonate material (Bisphenol-A) also known as BPA. Both our juice bottles and sauce containers are in compliance with US and Canadian food packaging regulations. RECYCLING All facilities actively recycle corrugate paper, metal and plastic. In addition, the company enrolled in the Staples Advantage program to recycle toners and ink and purchase Sustainable Earth products for breakrooms. Tree Top, with the help of an outside expert offered by Unilever, assisted strawberry and raspberry growers, from which the Co-op sources fruit, obtain certification of compliance with the renowned Unilever Sustainable Agriculture Code.

5 THE SUSTAINABILITY INDEX ALLOWS TREE TOP TO: Track each facility s progress individually Align our measurements with existing manufacturing goals and targets Establish a base year index which is set to to measure against year after year Improve data interpretation Set goals based on fluctuating production Our Total Manufacturing Sustainability Index is provided along with a description of each of our fruit processing facilities. Every facility has a Sustainability Index and we report historical data related to each facility s Green House Gas (GHG) emissions (measured in CO2 equivalent), energy and water consumption. The Sustainability Index charts provide a visual indicator for production yields versus consumption of water and energy and its contribution to GHG. Some of the manufacturing facilities have experienced a decline in production due to changes in operations and/or a lack of raw fruit needed for production. The non-productive time is generally spent on major cleaning initiatives and facility updates in order to keep staff employed, so the decline in resource consumption is not as low as one might expect based on decreased production. Our goal is to move our trend line in the opposite direction and we ve set lofty targets to achieve results by OUR INDEX CALCULATION IS: PRODUCTIVITY (%) ELECTRICITY (33%) WATER (33%) X NAT GAS (33%) 99 Total Manufacturing Sustainability Index Annual Index By Fiscal Year MEDFORD - OREGON PLANT Tree Top purchased the Medford facility in 2008 as a subsidiary and integrated its manufacturing facilities and fruit offerings under the Tree Top identity in August The Medford plant employs up to 200 people. The facility operates approximately 10 months out of the year to turn fruit into single strength and concentrate purées as well as formulated fruit sauces that are used for conventional, organic and baby food. The primary fruits processed in Medford include: apples, pears, apricots, peaches and strawberries. Medford Plant Sustainability Index Greenhouse Gas 6,724 6,897 7,854 KWh 7,226,559 6,4,837 6,7,075 Water (gallons) 122,0, ,735, ,713,4 Greenhouse Gas 7,5 8,825 6,996 KWh 3,645,000 3,514,882 2,944, Water (gallons) 29,203,000 14,864,840 11,053, ROSS PLANT - SELAH, WASHINGTON The Ross Plant is one of two of Tree Top s dried fruit manufacturing facilities and produces evaporated and low moisture apples as well as drum dried fruits. Dried apples are produced in many sizes, from rings to 1/8 x 1/8 apple chips, to a wide range of specialty infused apples. The operations team at our Ross facility also oversees the operation of our fresh cut apple processing plant. The Fresh Slice Plant processes fresh apple slices, dices and chunks used in the retail and foodservice industries. Ross Plant Sustainability Index Produc'on Yield PROSSER - WASHINGTON PLANT Located in the fertile Columbia Valley in Eastern Washington, Concord grape, blackberry, cherry, peach, plum, cranberry, raspberry, apple and pear juice concentrates are the main items produced at our Prosser plant. With a storage capacity of 4.9 million gallons, this facility produces various flavor blends of juice concentrates and processes Individually Quick Frozen (IQF) cherries, which include Bings, Vans and Lamberts. Retail packaged goods such as composite frozen 3+1 and 5+1 juice, sauce tubes and RTD 46 oz. juice in tin cans are also produced at the facility. Greenhouse Gas 14,949 18,749 18,1 KWh 17,233,6 19,566,781 20,442,651 Water (gallons) 99,164, ,241, ,618,734 WENATCHEE - WASHINGTON PLANT The Wenatchee Plant is an,000 sq. ft. production facility situated along the Columbia River. This plant manufactures Individually Quick Frozen (IQF) apples, solid pack and sugar-capped apples, which are mainly used by the baking industry. In addition, this plant produces low moistures apples in numerous fruit flavors for use in cereal and snack bar products. It is also home to our fruit puffing operation, which alters the texture of an apple piece by forcing air into the cellular structure, giving it the texture of a potato chip Prosser Plant Sustainability Index Greenhouse Gas 7,466 9,788 10,126 KWh 8,839,4 8,8,622 8,677,365 Water (gallons) 18,577,759 21,784,540 26,973,634 OXNARD - CALIFORNIA PLANT 84 Wenatchee Plant Sustainability Index Our Oxnard, California Plant is our newest state-of-the-art facility. It was opened in spring of 2013 and specifically designed to produce formulated fruit preps for ice cream, frozen novelty and yogurt applications. Strategically located in the heart of the U.S. domestic strawberry growing region allows us to ensure the highest quality fruit possible. Additionally, this facility has specialized pasteurization equipment to gently eliminate pathogens while maintaining piece identity and color. Since food safety is our number one concern, this facility produces two types of fruit preps, pasteurized and aseptic. The facility employs approximately employees SELAH PLANT - SELAH, WASHINGTON The Selah Plant is Tree Top s largest retail packaging facility with nine production lines and 4,000 sq. ft. of manufacturing and warehouse space. In FY2013 a new production line to produce good-to-go fruit or apple sauce pouches was added to the facility, thereby increasing production and staff. The Selah Plant not only packages PET, glass, polypro, aluminum, pouches and aseptic for our brand, it also contract manufactures beverages and apple sauce for other national brands. While beverages are its major activity, it also produces apple sauce in 3.2 oz. re-sealable pouches and other cups and containers in 4 oz., 2.4 oz., 24 oz., 48 oz., and a 5 gallon bag-in-box for our Tree Top and Seneca brands. Greenhouse Gas 9,343 8,284 7,5 KWh 15,159,4 15,631,9 10,834,0 Water (gallons) 194,877, ,6, ,936,548 WOODBURN - OREGON PLANT The Woodburn facility was managed by a wholly-owned subsidiary until August 2010 when it was integrated into the Tree Top structure. The Woodburn Plant makes ingredients for the food manufacturing industry, including: fresh berry packs, formulated fruits, fruit preps, single strength purées, purée concentrates and dried fruit flakes. Approximately - employees handle the following fresh fruits: apples, pears, Northwest strawberries, blueberries and blackberries. Greenhouse Gas 3,251 3,310 3,575 KWh 2,695,854 2,621,1 2,727,034 Water (gallons) 28,755, 28,293,200 26,187,398 Oxnard Plant Sustainability Index New facility and 1st yr of data Selah Plant Sustainability Index Annual Index Produc8on Yield Linear (Annual Index) Woodburn Plant Sustainability Index PLANT 2014 Greenhouse Gas 676 KWh 1,151,404 Water (gallons) 12,211,848

6 EMPLOYEE WELFARE We build strong relationships with growers, employees, customers and business partners based on mutual respect and support, valuing each other s experience, opinions and diversity. Providing a safe work environment, and highly competitive wages and benefits for Tree Top s approximately 1,040 employees has helped create a supportive and neighborly culture and earned the Co-op a very good reputation as a quality employer within our communities. ETHICS & CODE OF CONDUCT For more than 20 years, Tree Top had an established Ethics Policy which was published and by which employees were expected to abide. In 2012, a formal Code of Conduct using international standards similar to those held by many major international manufacturing companies was adopted and published. A complete Code of Conduct is available upon request. Since 2013, an Ethics Hot Line has been in operation for employees and others to report any potential violations or concerns. WAGES, BENEFITS AND OPPORTUNITIES Tree Top is an Equal Opportunity/Affirmative Action Employer (EEO) providing gainful employment in a wide range of fields from engineering and technical support to manufacturing to sales and marketing. We participate in an annual audit and complete an Affirmative Action Plan in compliance with the Office of Federal Contract Compliance Programs (OFCCP) and the Department of Labor. Tree Top requires all vendors and suppliers to comply with applicable affirmative action, and labor laws and regulations. Tree Top employed 8 employees including 31 at our subsidiary at the end of FY14. Below are highlights of our workforce and our benefit offerings: EEO compliant Our minimum wage is 35.56% above the federal minimum level % of employees are enrolled in our highly competitive medical, dental, vision and prescription drug benefit program, greatly subsidized by the company 53% of employees have their dependents enrolled in Tree Top s medical/dental/prescription drug plan A new employee wellness program in its 4th year provides free health screenings, counseling and health risk management support plus financial incentives for active participants FY10 FY11 SAFETY Safety Index FY12 Total Hours Worked FY13 FY14 Safety Index 3,000, ,0, ,000, ,0, ,000, , Voluntary third-party Ethics Audits were undertaken beginning in 2013 at each of our manufacturing facilities. The audits compare labor practices, environment, health and safety and code of conduct against the United Nation s Ethical Trading Initiative standards. Results are published for full disclosure on the global reporting site for ethical supply chain management Sedex. A revised safety approach, including a heightened focus, has improved plant safety over the past few years, which is measured against a national standard referred to as a safety index. The safety index takes into account more than the Occupational Safety and Health Administration s (OSHA) scores which was Tree Top s standard measurement previously. The safety index includes tracking the severity of the accident, the days away from work, whether or not medical treatment is sought, and the restricted duty as a result of an accident. Each manufacturing facility has an established Safety Committee to train, audit and review procedures and facilities for improved safety. Intense annual audits, monthly reporting and targets as well as a proactive Accident Prevention Plan with regular peer review and auditing help to maintain a safe workforce. With total hours worked in our plants and at our subsidiary totaling 2,325, Tree Top s overall safety index for FY14 was This represents significant improvement since the revision of the safety program in FY09, and by most industrial standards is considered good. We will continue our efforts to keep safety top of mind and to reach and maintain our goal of a safety index at 5 or less. Benefit and compensation reviews are completed bi-annually by Towers Watson, a global consulting firm in human capital and financial management and changes are made accordingly to ensure we remain competitive. Our highly competitive benefit offerings include: Medical, Dental, Vision and Prescription Drug Coverage Short-Term and Long-Term Disability Life Insurance Accidental Death and Dismemberment Coverage Employee Assistance Program 401K Plan Ten Paid Holidays Vacation/Paid Time Off Education Reimbursement U.S. Savings Bonds available through Payroll Deduction Wellness Program 24/7 Nurses Line Tree Top maintains its starting wage for an entry level position significantly above the federal and state minimum wage. Washington State, where the company is headquartered, has the highest minimum wage in the United States and Tree Top s minimum wage is 17.16% above that rate. Unlike many employers who save costs by hiring part-time employees to avoid offering benefits, Tree Top s practice is to hire people to full-time positions whenever possible. This provides us with greater work consistency and quality. It also provides employees and their families with affordable and highly competitive benefits. More than forty percent (40%) of Tree Top employees have been with the company 10 years or longer! Since the inception of its employee wellness program, employee health risk data has been collected and evaluated annually. As a result, additional financial incentives are introduced to encourage employee weight loss, smoking cessation and improved disease and risk management counseling. Employees receive awards on a Health Savings Account debit card and even receive funds for participating multiple years in the wellness program.

7 COMMUNITY SUPPORT and VOLUNTEERISM We are conscientious about our impact on the environment and in our communities, and we do what we can to make a positive difference. This report highlights just a few efforts to demonstrate the amazing amount of generosity and goodwill provided by our employees and encouraged by our neighborly culture. Each year, through a formal donation program, Tree Top contributes more than $200,000 to more than charitable organizations throughout our communities. In addition, the Co-op contributes thousands of pounds of food and beverages as in-kind donations to school programs, food banks and community events. Much of our support is provided to organizations that provide programs and services benefiting youth. Tree Top strongly encourages and supports volunteerism and good citizenship. Each month, the employee newsletter features an article demonstrating our corporate citizenship and recognizing employee efforts. Employees are actively engaged in volunteerism, giving and are encouraged to support several programs throughout the year in conjunction with Tree Top. Each fall, employees organize an internal United Way campaign with a pledge drive, auctions, bake sales and more to raise nearly $,000 annually. Each December, Tree Top is the lead sponsor for the KNDO Family Food Drive organized by a local television station to benefit the Northwest Harvest food bank. Besides donating an entire semitruck-load of food, employees donate and collect barrels of food, toys and coats and also serve hot apple cider during the Food Drive to thank local residents for participating. The Foster Children s Christmas Party is a long-standing tradition at Tree Top too. The event is organized and hosted for those children deemed the neediest among families registered with the Department of Health and Human Services. Each child receives personalized gifts, treats, a visit from Santa and an afternoon of crafts and games to brighten their holiday season and to show them people care. Employees even organize an annual Christmas Bazaar in our community to raise funds for the party and gifts for the children. In spring 2014, employees joined the company and raised funds for the Children s Miracle Network and provided $20,400 for health care for children. In August 2014, a 256,108 acre devastating fire named the Carlton Complex Fire swept through a large portion of Washington State s Okanogan Valley which is home to many tree fruit growers, workers and their families. Tree Top responded with initial gifts of pallets of food and beverages along with $,000 to assist relief workers and those left homeless and pledged another $200,000 to help rebuild the rural communities. Truly not a week goes by without employees or our Co-op helping others. Every Friday, employees donate money in exchange for the opportunity to wear blue jeans. Those monies are provided to charities nominated by employees throughout the year. GOOD DEEDS RECOGNIZED BY OTHERS Four consecutive years of awards and recognition by United Way of Central Washington for distinguished support of Human Services and promoting goodwill. IN FISCAL Charitable Dona.ons and Sponsorships $0, YEAR 2014, $0, TREE TOP $400, CONTRIBUTED $300, $1,417 IN $200, CHARITABLE $, DONATIONS. $0.00 FY09 FY10 FY11 FY12 FY13 FY14 PAST NOTEWORTHY AWARDS: 2012 Washington Green Award Silver Category for Agricultural Business Sustainability Efforts 2012 Secretary of State s Medallion Award for Corporate Citizenship the highest honor a corporation can receive for such FOR INFORMATION ABOUT THIS REPORT OR TO REQUEST ADDITIONAL COPIES PLEASE CONTACT: Corporate Communications Director, Tree Top PO Box 248 Selah, WA (9)