Corporate Citizenship & Sustainability Report

Transcription

1 FY15 Corporate Citizenship & Sustainability Report

2 INTRODUCTION and COMMITMENT In 19, Tree Top was founded as an agricultural cooperative by a group of growers in Washington s apple country. The mission of the Cooperative was to take from our growers orchards their fruit not attractive enough to sell to consumers, and turn it into healthful fruit products for the marketplace. For more than 55 years now, Tree Top has been saving ugly fruit by producing a wide array of premium fruit products such as apple sauce, purees, juice, and dried ingredients. Over the years, the Cooperative used its fruit expertise to expand into other fruits and fruit product offerings. With nine fruit handling and production facilities strategically located near the farms, Tree Top now offers the widest array of fruit products available from a single source. The company produces, markets and sells products to consumers through retail stores and the foodservice industry. Also, the company produces fruit ingredients for 22 of the world s leading global food manufacturers. Consumers enjoy Tree Top s fruit products in a wide range of things from cereals to dairy snacks and more. Our customers, consumers, growers, employees, and our communities are the stakeholders to whom we listen and from whom we seek guidance on the items important to them as it relates to social responsibility and sustainability. Since its founding, Tree Top has maintained a focus on environmental stewardship. One of the company s core values is Responsibility: We are committed to making a positive impact on our community and environment. MISSION Deliver sustainable value to our grower-owners by exceeding customer expectations. VISION Your first-choice fruit company. COMPANY VALUES EMPOWERMENT We promote a culture of continuous improvement and innovation where employees are encouraged to challenge the status quo and accept accountability for results. INTEGRITY We do the right thing, communicating openly and honestly, exhibiting behaviors consistent with our words. QUALITY We are committed to quality the quality of our products, services, and our way of doing business. RESPECT We build strong relationships by valuing each other s experience, opinions, and diversity. RESPONSIBILITY We are committed to making a positive impact on our community and environment. UNITY One mission, one team, one Tree Top.

3 Tree Top produces, markets and sells premium fruit products and ingredients, sold in more than countries across the globe. ABOUT US Tree Top operates nine fruit handling facilities. Each facility uses different fruit, requiring different methods of processing to create a wide array of finished products and ingredients. Comparing the facilities yields and resource consumption is complicated by their differences. However, each production facility has the goal of producing more yield while using fewer resources to do so. To measure and track progress across our entire production process, in 09, Tree Top adopted a Sustainability Index. This report reflects the historical index charts for each facility as well as total manufacturing index charts for the company over the last five years. Our goal is to be as transparent as possible and to continue improvements in the reduction of Tree Top s environmental impact. This annual report is just one method of sharing our goals and progress with stakeholders. Tree Top also reports information through CDP, an organization working globally to reduce climate impacts and other harmful environmental impacts through transparent reporting, measurement, and scoring. Global manufacturers and others use the CDP information to evaluate their supply chains impact and to establish targets for suppliers. Tree Top voluntarily undertakes Ethical Trading Initiative audits conducted by certified, third party auditors to measure against the SMETA Pillars 4 international standards for issues related to labor practices, health and safety, environmental impact and community support. Sharing audit results on the Sedex global reporting system allows our retail and ingredient customers easy access to important information. OUR OPERATIONS Tree Top s headquarters are in rural Selah, Washington, in the heart of Washington s apple country. The Cooperative owns and operates a fruit sorting facility and eight fruit processing facilities which collectively handle more than 450,000 tons of all types of fruits annually. Data reported herein reflects the yields and resources utilized at each of our production facilities.

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5 DEFINING SUSTAINABILITY Something is sustainable when it meets the needs of the present without compromising the ability of future generations to meet their needs. The core principles behind our sustainable practices are to: minimize harm maximize benefit be accountable and responsive to key stakeholders support strong financial results In 09, Tree Top s formal sustainability program was established to provide education to employees, help establish goals, oversee projects and report results. A Corporate Social Responsibility Committee (CSRC) led by the company s Corporate Communications Director reports to the CEO directly, and in turn, the Board of Directors. The Committee represents a broad spectrum of key people 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 helps bring focus to the organization s efforts, including observation, data collection, process improvements, monitoring, and progress reporting. Below are the primary areas of interest related to our manufacturing facilities and our company s key 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

6 REPORT ON PRIMARY Many energy saving projects REDUCE WATER USE TOO REDUCE WATER and WASTEWATER Handling more than 0,000 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. 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 to ensure water returns clean to nearby tributaries and rivers. FY15 WATER IMPROVEMENT PROJECTS Selah Plant 9: While updating the facility with a new pouch package line, an aircooled pouch chilling system was installed. The high-efficiency chiller and diversion system of non-contact cooling water with a direct discharger was selected and installed to minimize wastewater impact. Selah Campus Storm Water Project: A new diversion swale on our Selah campus now diverts approximately six acres of storm water collection to a low impact, zero energy swale. This keeps pollutants from the Selah Ditch, a natural runoff area. This effort reduced the water temperature impact and qualified our Selah Campus for a No-Exposure Determination letter from WA Department of Ecology (DOE). Sprayfield Update: Working with the DOE and our local Health Department, practices were changed at the Selah Sprayfield where our Selah Campus wastewater is treated. We now utilize sludge as fertilizer on local hayfields. Not only does the sludge increase nutrients and crop yields, it eliminates the need to haul sludge to disposal sites unnecessarily. INCREASE THROUGHPUTS and YIELDS Many people have heard the term carbon footprint which is a measure of the impact activities have on the environment, and in particular climate change. It relates to the amount of greenhouse gasses produced in our day-to-day lives through burning fossil fuels for electricity, heating, transportation, etc. To help measure and report progress, Tree Top created a Sustainability Index, which reflects the total amount of fruit products we produce at our facilities compared to the total amount of key resources used in generating those yields. Because each facility produces different fruit products and processes vary, some facilities report yields in total pounds of finished goods while another may report total pounds of fruit solids. The Sustainability Index is a simple way to calculate the total, overall progress in reducing resource consumption versus yield compared to an initial baseline. Please refer to the illustration above for a simple explanation of the Sustainability Index. CERTIFIED SUSTAINABLE: STRAWBERRY, RASPBERRY, BLUEBERRY, BLACKBERRY AND CHERRY FARMS. Unilever s Sustainable Agriculture Code is renowned globally as one of the most stringent codes related to sustainable growing. With guidance from Tree Top s trained, specialty fruit procurement staff, our growers have obtained the prestigious certificate of compliance, with the Unilever Sustainable Agriculture Code.

7 AREAS OF INTEREST ENERGY REDUCTIONS and EXPECTED RESULTS SINCE CSR FOCUS: COMPLETED 31 ENERGY SAVINGS PROJECTS! FY15 ENERGY REDUCTION PROJECTS Medford Plant Lighting Upgrades: Converted to LED lighting, creating a brighter workplace using lower energy than the previous lighting. This project was recognized by Pacific Power for its energy savings, and the company received $28,142 in rebates. Selah Plant Line 9: While adding a new pouch packaging line, a section of the facility was updated. The update included new LED lighting and new insulation for better energy retention. Selah Campus Wastewater Spray Field: Installed oxygen sensing technology combined with variable speed and base-load aeration control. This provided for energy reduction and conservation while improving wastewater treatment. Pacific Power deemed the project would produce realizable power savings of nearly $50,000/year. Ross Plant Air Compressor Replacement: Replaced an older air compressor with a more efficient unit, including variable speed control, which is estimated to save 238,017 kwh annually. The project also generated an incentive reward provided by Pacific Power of $35,703. Ongoing wastewater reduction projects provided capacity for essential manufacturing growth WITHOUT NEGATIVELY IMPACTING WASTEWATER TREATMENT FACILITIES. REDUCING NATURAL GAS USE REDUCES CO2 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 cans and plastic containers are recyclable. Our packaging is in compliance with the U.S. and Canadian Food Packaging regulations. With the addition of two new apple sauce packing lines over the past two years, Tree Top has been able to dramatically reduce the use of individual plastic cups previously used for packing single servings. The pouches have recyclable lids and the pouch itself flattens entirely. Flatter packaging takes up less space in landfills. RECYCLING All facilities actively recycle corrugate paper, metal and plastic. In addition, the company is enrolled in the Staples Advantage program to recycle toners and ink, and bathrooms are stocked with Sustainable Earth products.

8 Scale with Baseline at 0 TOTAL MANUFACTURING INDEX (ALL USEAGE VS. PRODUCTION YIELD) Fiscal Year (Aug-July) FY11 FY12 FY13 FY14 FY15 GHG (Tons CO2 Equivilent) 53,610 49,303 55,853 54,947 61,319 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 resource consumption ties directly to the volume of fruit we process each year. As is the nature of our agriculture business, crop qualities, and quantities vary each season and that variability directly impacts our processing. OUR INDEX CALCULATION IS: Electrical (KWh) 53,882,679 54,0,069 56,848,983 53,584,529 59,746,369 Water (Gallons) 485,307, ,178, ,610, ,695, ,901,343 Production 413,132, ,861, ,266, ,043, ,254,3 MEDFORD - OREGON PLANT Tree Top purchased the Medford facility in 08 as a subsidiary and integrated its manufacturing facilities and fruit offerings under the Tree Top identity in August 10. The Medford plant employs up to 0 people. The facility operates approximately ten months out of the year to turn fruit into single strength and concentrate purées as well as formulated fruit sauces for conventional, organic, and baby food. The primary fruits processed in Medford include apples, pears, apricots, peaches and strawberries. Index Scale: Baseline is 0 Medford Plant Sustainability Index FY11 FY12 FY13 FY14 FY15 Fiscal Years (Aug-July) 74 PRODUCTIVITY (FRUIT SOLIDS) ELECTRICITY (33%) WATER (33%) X OR NAT GAS (33%) SUSTAINABILITY INDEX OXNARD - CALIFORNIA PLANT The Oxnard, California Plant is our newest state-of-the-art facility, opened in 13. Its thoughtful design allows production of formulated fruit preps for ice cream, frozen novelty, and yogurt applications. It is strategically located in the heart of the U.S. domestic strawberry growing region, ensuring 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 50 employees. Index Scale: Baseline = Oxnard Sustainability Index FY14 Fiscal Year (Aug-July) 142 FY15

9 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 ounce juice in tin cans are also produced at the facility. Index Scale: Baseline = 0 Prosser Plant Sustainability Index FY11 FY12 FY13 FY14 FY15 Fiscal Years (Aug-July) 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. Index Scale: Baseline = 1 0 Wenatchee Sustainability Index FY11 FY12 FY13 FY14 FY15 Fiscal Years (Aug-July) ROSS PLANT - SELAH, WASHINGTON The Ross Plant is one of two 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 for retail and the foodservice industry. WOODBURN - OREGON PLANT The Woodburn facility was managed by a wholly-owned subsidiary until August 10, 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. Index Scale: Baseline 1 0 Ross Plant Sustainability Index FY11 FY12 FY13 FY14 FY15 Fiscal Years (Aug-July) Index Scale: Baseline = - Woodburn Sustainability Index FY11 FY12 FY13 FY14 FY15 Fiscal Years (Aug-July) SELAH PLANT - SELAH, WASHINGTON The Selah Plant is Tree Top s largest retail packaging facility with nine production lines and 450,000 square feet of manufacturing and warehouse space. In FY13, a pouch production line to produce good-to-go fruit (apple sauce pouches) was added to the facility, thereby increasing production and staff. Successful sales created the demand to add a second pouch production line in FY15, which increased production through the facility. The Selah Plant not only packages PET, glass, polypro, aluminum, pouches and aseptic for our brand, it also manufactures beverages and apple sauce for other national brands. While beverages are its major activity, it 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. Index Scale: Baseline = Selah Plant Sustainability Index FY11 FY12 FY13 FY14 FY15 Fiscal Years (Aug-July) Completed first Carbon Disclosure Project (CDP) survey and began collecting scope 2 data.

10 EMPLOYEE WELFARE Providing a safe work environment, and highly competitive wages and benefits for Tree Top s approximately 1, 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. SAFETY Tree Top utilizes a Safety Index which is measured against a national standard. The 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. Total hours worked in FY15 were 2,130,681, and half of those hours were worked in a food manufacturing environment. The most recent national data for Food Manufacturing companies with 1,000+ employees reflects an average incident rate of 3.4. Tree Top s food manufacturing incident rate is 3.19, or better than the average. ETHICS & CODE OF CONDUCT Tree Top maintains a formal Code of Conduct which is published for all salaried employees in the company s Employee Handbook. The Code of Conduct was prepared using examples from some of the world s leading food manufacturers Codes of Conduct. It includes many international standards related to business ethics, labor, financial transactions, environment, community support, etc. An Ethics Hot Line was established in 13 for ease in reporting any potential violations or concerns. Voluntary, third party audits have been undertaken at each manufacturing facility beginning in 13. The audits compare labor practices, environment, health and safety, and our 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.

11 OUR WORKFORCE 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), Department of Labor. Tree Top employed 1,044 employees, including 28 employees at our subsidiary at the end of FY15. We prefer to hire full-time positions versus part-time for greater work consistency and quality. Full-time positions provide 95% of our employees and their families with access to affordable and competitive benefits. We re pleased to report, nearly half of Tree Top s employees have been with the company 10 years or longer! Workforce Highlights: EEO compliant 39% of our employees are minorities 34% of our employees are women Our minimum wage is 37% above the federal minimum level 95% of employees are enrolled in our highly competitive medical, dental, vision, and prescription drug benefit program, greatly subsidized by the Company 50% of employees have their dependents enrolled in Tree Top s medical/dental/prescription drug plan An employee wellness program, in its 5th year, provides for free health screenings, counseling, and health risk management support. Also, financial incentives are provided for active participants and wellness activities and challenges Wages and Benefits: 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. $ Starting wages for entry level positions are maintained significantly above the federal and state minimum wages. Minimum wages are 18.08% above the Washington State s minimum wage, which is the highest in the United States. Medical, Dental, Vision, and Prescription Drug Coverage Life Insurance Accidental Death and Dismemberment Coverage Short-Term and Long-Term Disability 1K Plan Employee Assistance Program Ten Paid Holidays Vacation/Paid Time Off Education Reimbursement Wellness Program 24/7 Nurses Line 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, improved disease management and counseling, and disease risk management. Employees receive awards on a Health Savings Account debit card, including rewards for participating for multiple years in the wellness program.

12 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 community support program, Tree Top contributes nearly a half a million dollars to more than 50 charitable organizations. Significant financial support to improve agricultural practices is provided to Washington State University s (WSU) Tree Fruit Research Program. Tree Top s gift to WSU helps fund the planting and infrastructure of a research orchard in Central Washington. The research orchard will be used to test a variety of new methods to reduce water use and grow trees under drought conditions anticipated with global warming. While the majority of the Cooperative s community investment is directed toward charitable organizations providing programs and services to benefit youth, Tree Top also responded to the needs of rural communities in Washington ravaged by wildfires over the past two years. Employee contributions of time and money are continually fostered and positively recognized. Each month, our employee newsletter features articles demonstrating citizenship and recognizing employee efforts. Each fall, employees organize an internal United Way campaign with a pledge drive, auctions, bakes sales and more to raise approximately $,000 annually. And, each December, Tree Top takes the lead on the KNDO Family Food Drive to benefit the Northwest Harvest food bank. The Food Drive support includes volunteering, food collection, and donating an entire semi-load of fruit products, as well as a $10,000 cash gift. Another long-standing tradition of caring for others is the Tree Top Foster Children s Christmas Party on the company s Selah Campus. The event is organized for those children deemed the neediest among families registered with the Department of Health and Human Services. To brighten these children s holidays and to show them care, each child receives personalized gifts, treats, a visit from Santa, and an afternoon of crafts and games. Each spring, employees join the Company to raise over $,000 for the Children s Miracle Network. These funds are used to support hospitals caring for children throughout our service areas. GOOD DEEDS RECOGNIZED BY OTHERS: Past winner and recently nominated and recognized for the National Association of Secretary of State Medallion Award for Corporate Citizenship the highest honor a Corporation can receive for such. Awarded and recognized by the United Way of Central Washington for five consecutive years for Tree Top s Distinguished Support of Human Services. Washington Green Award Silver Category for Agricultural Business Sustainability Efforts A LONG TRADITION OF COMMUNITY SUPPORT AND CARE CONTINUES. IN FY15 TREE TOP PROUDLY CONTRIBUTED A TOTAL OF $423,836 IN CASH AND PRODUCT. 15 WASHINGTON FOOD AND BEVERAGE PROCESSOR OF THE YEAR AS NAMED BY A COMMITTEE OF MANUFACTURING EXPERTS FOR THE SEATTLE BUSINESS MAGAZINE S MANUFACTURING AWARDS. FOR INFORMATION ABOUT THIS REPORT OR TO REQUEST ADDITIONAL COPIES PLEASE CONTACT: Corporate Communications Director, Tree Top PO Box 248 Selah, WA (509)