Feeding Our Future. Our Sustainability Plan

Transcription

1 Sustainability Plan

2 sustainability plan Welcome 2 Sisters Food Group is one of the UK s biggest and brightest food companies. 23,000 colleagues are fanatical about food, and we re truly proud of the role we play in helping to feed the nation. aim is to be the most progressive, professional and innovative supplier to each of our valued customers, and to achieve this we need to take the lead in sustainability. From humble beginnings in the early 1990s, 2 Sisters has grown to become one of the leading food manufacturing companies in Europe, producing great quality, great value food. business touches lives in communities in every corner of the UK, as well as in more than 50 countries worldwide. The world in which we now operate is affected by a perfect storm of population growth, resource depletion, environmental damage, financial pressure on communities, and unprecedented demands on land use. This not only affects our business, but also all of our people, partners and customers, and to ensure our success we must face these new challenges. is our response to these sustainability challenges, and is an exciting key part of our plans to ensure our future success. It focuses on the things that really matter to us and to our stakeholders, and puts sustainability at the heart of our business. It shows that we believe growing in a sustainable manner can improve all parts of our business. vision goes beyond reducing our impact and living within constraints. global reach allows us the opportunity to bring about positive change and proactively do good, rather than simply less harm. Energy, water, diet, raw materials and agriculture are some of the many areas in which we aim to do more than just lower our impact. I look forward to us all working together to ensure the implementation and effectiveness of. Ranjit Ranjit Singh CEO 2 Sisters Food Group 2

3 Contents CONTENTS DID YOU KNOW? We source from more than 50 different countries! One of our big challenges is developing sustainable sources of supply. 4 Background: The risks we face 6 strategy and goals 7 vision: Targets 8-9 targets: Environment 10 targets: People 11 targets: Economic Success targets: Sustainable Raw Materials and Vertical targets 15 What s next? 3

4 Background The risks we face in a changing world As a growing food company that wants a sustainable future, there are a number of challenges we face, from increasing populations and demands on the land, to changing climate and demographics. As part of the programme, we have identified these risks in order to acknowledge their impact and ensure our continued success. DID YOU KNOW? At 2 Sisters we have a huge range of innovators. They can be found in our New Product Development teams through to Agriculture, Procurement, Supply Chain, Operations, Technical and Engineering. Health With 50% of the UK population forecast to be obese by 2050, social, media and political interest in the health of the global population continues to increase, creating increased focus on the food that is supplied. Government and governance Changing demographics An ageing population and a widening earnings gap mean consumer profiles are changing, resulting in demands for different types of food, packaging, labelling and preparation, as well as increasing the risks from poverty and skills shortages. Global political uncertainty, increased international trade and new trans-boundary agreements create questions over the governance of our food systems. As a result, there s a need for all those involved in food production to ensure that they are able to create governance of food systems that traditional governments are no longer able to or interested in developing. Trust and transparency Interest in food and its provenance continues to increase, while trust in the food industry declines. Building trust and transparency into food systems is critical to creating public trust. 4 Data Proliferation Big data offers the opportunity to manage a business with more clarity and accuracy than ever before. Faster access allows stakeholders to review business performance in ways and at speeds never before possible.

5 Climate change Changing world weather patterns will impact on agriculture, biodiversity and people through increasing disease and pests, drought and rising sea levels. Reducing our impact on the climate, while adapting to inevitable change poses a dual challenge to our business. Skills gaps The food industry is facing a time bomb owing to an ageing population and change in the skills base of the UK, combined with a lack of new entrants into the industry. Lack of science, engineering and technical staff increases the risk to the long-term future of our business. Demands on land The need for food, feed and fuel is growing, while the availability of healthy, productive land is decreasing owing to degradation, urbanisation, climate and sealevel change. suppliers will continue to face the challenge of declining access to suitable land on which to produce our raw materials. Water scarcity Billions of people face daily issues with access to water. Increased demand for food will mean increased demand for water, and water scarcity, including in parts of the UK. Population growth And resource scarcity As global populations grow and develop, demands on both the type and amount of food will evolve, sometimes rapidly. nine billion people healthy, sustainable diets is a key challenge that all those in the food supply chain face. Community involvement People now expect more from businesses. It s not just enough for businesses and sites to create jobs in the local area they are now expected to contribute to the local community through programmes, contributions, fundraising for charity and volunteering. 5

6 OUR STRATEGY AND GOALS strategy and goals Responding to sustainability challenges forms part of our strategy to become one of the world s leading food companies. is an exciting key part of our plans to ensure success for the future. The plan confirms our commitment in areas where we have always focused, and sets ambitious new goals that will challenge our business in others. If we do business in the right way, strive for the highest achievement and keep an eye on our customers and their customers we will succeed in both our business and our sustainability goals. As part of the programme, we have shaped our sustainability work around four key pillars. With each pillar there are a number of targets key sustainability issues we work with horizontally across all our sites. We also target our key vertical supply chains, looking at everything from farm to fork. In these poultry, beef and lamb we will work with our suppliers to identify challenges and opportunities, set objectives at appropriate levels and work together to deliver more sustainable solutions. For our Vertical targets, turn to page Environment PEOPLE Economic success Sustainable raw materials i Find out more Throughout this booklet, you can learn more about our sustainability visions and targets in key business areas from water and waste management, to procurement and innovation. Read more about our targets on page 7 (opposite), and you can also find out about our targets for each area from page 8 onwards. 6

7 vision OUR VISION sustainability efforts are grouped into four key pillars: Environment, People, Economic Success and Sustainable Raw Materials. Within these pillars, there are nine Horizontals key sustainability issues we work with horizontally across all our sites. For each Horizontal we have a vision of where we want to be: Waste Reduction vision: Reducing food waste and loss is embedded in our operations and we create value through beneficial use of all waste. colleagues vision: As an employer of choice, we contribute positively to employment and education. Innovation vision: We consistently deliver significant growth through sustainable product innovation. Sustainable agriculture vision: We lead on the development and implementation of farm standards for welfare, assurance and skills. Water Management vision: We will be efficient users of water and save more in our supply chain than we use in our sites. Community vision: We are welcomed as a key part of the local community. customers vision: We are recognised leaders in sustainability and our customers and stakeholders acknowledge this. PROCUREMENT vision: All our products and services are sourced from partners who support and deliver our sustainability aspirations. Climate Change and Energy vision: We are a carbon-neutral business and a net energy producer. FEEDING OUR FUTURE 7

8 our targets OUR S Until the end of, the different teams across 2 Sisters will be focusing on achieving a number of targets as part of. Each of these targets is described below. WASTE VISION Reducing food waste and loss is embedded in our operations and we create value through beneficial use of all waste. WHY WE WILL IT Food waste is a global problem in all stages of the supply chain, with economic, social and environmental implications. Every site achieves 5% year-on-year reductions in the amount of waste produced Operational waste Packaging Lean management Waste has a value, and any waste sent to landfill is a lost opportunity and an increased cost to the business. Food packaging not only protects the quality and freshness of food, but also contributes to landfill if not easily recyclable. Lean management has been proven across sectors to positively enhance business performance and efficiency, reducing waste and maximising the efficient use of resources. Zero waste is sent to landfill Each site produces a baseline measure of its quantity of waste by waste hierarchy category (Reuse, Recycle, Recovery and Disposal). All waste goes for beneficial use, moving waste up the hierarchy as far as possible (Reuse, Recycle, Recovery). Achieve a 3% reduction in product and packaging waste in our grocery supply chain through innovative packaging solutions. Where appropriate, increase the quantity of recycled content of packaging used for our products by 5% from a 2014 or earlier baseline. We will actively engage with our customers and suppliers to develop improved sustainable packaging solutions. Each Division will define and implement its approach to lean, operational excellence and continuous improvement WATER VISION We will be efficient users of water and save more in our supply chain than we use in our sites. WHY WE WILL IT Clean water Waste water True Price Two-thirds of the world s population is forecast to face water shortages by 2030, and parts of the UK face significant challenges in supplying fresh water. Effluent has a significant environmental impact if not correctly treated, and has significant economic costs if not managed correctly. The price paid for water does not always reflect the true cost to society and the environment, with significant external costs not included in the price. Absolute water use reduced by >8% from a 2014 or earlier baseline. By the end of the company will implement assessment tools to identify the high water usage sites and those situated in areas of water stress or vulnerability for priority action. All sites achieve total compliance with effluent discharge consents and legal requirements. We will measure the True Price of water to one site in each of our Divisions

9 DID YOU KNOW? Soya is the world s most important source of protein. main use for soya is as a component of animal feed and we re committed to ensuring that the soya we use is cultivated sustainably. Climate change and energy vision We are a carbon-neutral business and a net energy producer. WHY WE WILL IT Energy use Energy generation Carbon footprint Supply chain and logistics Climate change resilience Burning fossil fuels, agricultural practices and release of stored carbon by human activity increase carbon dioxide in the atmosphere, leading to warming and climate change. These changes will impact on all parts of the food supply chain, reducing resource availability and impacting on the lives of millions. Moral, environmental and legal drivers mean action is required. Climate change will already impact on the business and 2SFG must plan to adapt to these changes. Every site has implemented an energy reduction plan. All sites meet their Climate Change Levy Agreement Targets. All sites exceed their Climate Change Levy Agreement Targets. Where sites do not have a CCA, they achieve a 13% normalised reduction. Where sites do not have a CCA, they achieve a 16% normalised reduction. We will develop and implement a strategy for renewable energy generation across the business, including agriculture. The Group achieves a 20% reduction in its carbon footprint from a 2008 baseline. The Group will have a full assessment and understanding of transport utilisation and identified opportunities for improvements. A full supply chain (outbound to customer) carbon footprint will be completed for three Divisions. A full supply chain (outbound to customer) carbon footprint will be completed for all Divisions. We will complete a business-wide climate change adaptation and resilience plan. 9

10 targets COLLEAGUE VISION As an employer of choice we contribute positively to employment and education. WHY WE WILL IT Youth unemployment Ethical business Skills and development Safety The 2007 economic crisis disproportionately impacted on the employment opportunities for young people. Food supply chains cross international borders, but it is also important to ensure ethical standards are upheld in our business. Employees who are engaged in the business are given the skills to do their jobs, and the opportunity to progress will be critical to the success of the business, the delivery of customer standards and product quality. Safety first every time and providing a safe place to work are critical to the success of the business. We will develop a company-wide youth employment strategy, starting by engaging three sites in the process. We will increase the number of sites engaged in the youth employment strategy year on year. Site and Divisional senior managers have completed a training course on delivering ethical management We will have zero breaches of our Ethical Trading Policy. We will implement a joint action plan with GLA to tackle modern slavery and exploitation internally and externally. We will improve our annual employee survey participation rate and engagement score from each year from a 2014 baseline. -18 internal development programmes create a talent pipeline for internal promotion. All our employees have appraisals, personal development reviews, and a personal development plan, including sustainability objectives 2017 for managers. Every site is demonstrating improvement against the Group Health and Safety Plan. employees are increasingly involved in creating a safety culture. Sites continue to achieve year-on-year AFR improvements. -18 COMMUNITY VISION We are welcomed as a key part of the local community. WHY WE WILL IT Fundraising Community relations 2 Sisters sites are part of local communities, employing local people, using local businesses and working with residents. It is critical we understand, respect and support those communities and we believe employees who achieve that will be more passionate about their work and site. Every site implements structured fundraising for charity. Through site-based events every site raises 7 per employee per annum for charity. - Sites achieve zero complaints from local communities. Every site develops a community engagement plan

11 DID YOU KNOW? We support the prevention of deforestation, protection of water habitats and the use of labour rights. INNOVATION VISION We consistently deliver significant growth through sustainable product innovation. WHY WE WILL IT Innovation skills Best practice Business opportunities Innovation is key to the success and sustainability of the business, our partnerships with customers and future of the company. Sustainability is integrated into innovation training programmes. All innovation staff are fully conversant with principles of Sustainable Innovation. Creation of a best in class innovation process which integrates sustainability. All innovation projects are subject to a sustainability assessment. Sustainability is a key criterion in project selection and prioritisation. Year-on-year increase in number of projects with sustainability as a key driver. CUSTOMER VISION We are recognised leaders in sustainability and our customers and stakeholders acknowledge this. WHY WE WILL IT Customer sustainability aspirations Customers are at the heart of everything we do and partnering with customers to develop and meet their sustainability standards will support business success. We will ensure we continue to meet all customer requirements for sustainability and engage in the process of developing sustainable and responsible approaches to business. - True Price The cost of social and environmental impacts of site operations are not always reflected in the costs our business faces, and understanding these better presents the opportunity to ensure the sustainability of our operations. We will develop a True Pricing model of the environmental impact of our sites. Product integrity Integrity of the claims made about food is critical to ensuring consumer trust. We will ensure all sustainability claims made on our products are verified and monitored

12 OUR S Sustainable agriculture vision We lead on the development and implementation of farm standards for welfare, assurance and skills. WHY WE WILL IT Welfare Feed Skills Farm assurance As a food company, agriculture is critical to the future of the business, and working together with our partners to ensure they manage environmental impacts, develop the skills for the future and improve welfare standards will ensure that the agriculture supply base will continue to succeed. We will implement core agricultural standards across our supply chain. We will develop a suite of animal welfare KPIs/outcome measures for our suppliers, and provide feedback on performance. We will engage with retailers and other interested parties to develop sustainable welfare solutions for agriculture across their tiers. Working with contracted farmers we will develop a bespoke cattle rearing and finishing model that delivers better animal welfare and improved returns for the farmers we work with. We will work with stakeholders and third parties to develop a Sustainable Feed Plan. The agriculture team will work with external parties developing farm managers for the future of our business. For our red meat suppliers we will work with the industry to achieve birth to slaughter farm assurance. DID YOU KNOW? In the first half of 2014, over 50% of our factories achieved zero to landfill. We have simple goals in this area reduce the waste we produce, no landfill and 100% of our waste going to a beneficial use. 12

13 Procurement vision All our products and services are sourced from partners who support and deliver our sustainability aspirations. WHY WE WILL IT top 25 commodities by value have been subject to a sustainability risk assessment. Commodities Commodity production is responsible for a significant amount of environmental impact, but also provides 25% of the world s population with livelihoods. As populations and incomes grow, the demand for commodities increases, placing risk on the supply, the environment and the availability of crops. A specific assessment of fish sourcing will be completed to assess if this should be added as a further Vertical. A sustainable sourcing plan has been implemented for all our high risk commodities. We will increase the quantity of responsibly sourced raw materials including: Certified sustainable fish (cod, tuna, salmon, haddock, white fish) Cocoa Sugar Soya (feed) Palm oil and derivatives Define and implement the sustainability criteria for assessing and approving suppliers to the business. Supply chain compliance with the UN Global Compact Food supply chains cross international borders, potentially causing the exploitation of people and the degradation of the environment. Ethical risk includes labour standards, health and safety, the environment and business ethics and as a global player we must ensure we are a force for good. Implement sustainability plans across our key suppliers which supports delivery of the 2SFG sustainability strategy. 100% of direct commodity, packaging and labour suppliers will receive an ethical risk assessment by being registered on SEDEX. Suppliers identified as high risk in SEDEX have undertaken an ethical audit, reported it on the system, and will be supported to ensure any non-conformances are addressed. We will identify our high risk indirect suppliers and add them to SEDEX, complete risk assessment and implement audits and address non-conformances We will implement a formal supplier sustainability strategy across our supply base and make this public. 13

14 OUR S Verticals vision All our Vertical partners are leaders in sustainability and challenge us in achieving leading sustainable performance. WHY WE WILL IT Water footprint completed for each entire Vertical chain. Carbon footprint completed for each entire Vertical chain. Waste footprint completed for each entire Vertical chain, including food waste. Complete the Ethical Risk Assessment of each of the Vertical chains including labour rights, equality, diversity and development. Poultry Beef Lamb three Vertical supply chains are those where we represent 10% or more of the UK supply chain and have the scope and scale to improve sustainability across that chain. Complete the assessment of the health and safety risks and opportunities for each of the vertical supply chains. Identify the food quality impacts of the Vertical supply chains. Complete an assessment of the air emission impacts of the Vertical chains. Complete the assessment of pollution impacts of the Vertical chains. Develop a biodiversity assessment and plan for each Vertical. We will perform a land use assessment for all Verticals. With the knowledge gained from our Vertical assessments, we will implement specific Vertical Action Plans with our partners 2017 to improve the sustainability throughout the chain, focusing our resources on hot spot areas through the chains. Assess the ecosystems service throughout the entire Vertical chain. Assessment of the True Price of sustainability impacts throughout our Verticals. i Find out more To find out more about our targets and our sustainability strategy please visit the sustainability section on the 2 Sisters website: 14

15 what s next? What s next? Having the plan in place is only the start. To be really effective we know that our people, customers and partners have to understand what we are trying to do and why, and be engaged in working with us to meet these goals. We are going to take several actions to make this happen: Internal Communications Engaging our people is critical to success, and using our communication channels we will ensure everyone in the business is aware of our plans. We will also ensure there are two-way lines of communication, as our amazing people will have a huge number of ideas that can help us on our journey. DID YOU KNOW? We re a member of The Roundtable on Sustainable Palm Oil (RSPO). This means that 100% of the palm oil we use is RSPO certified and we re committed to continuing this to progress our targets for sourcing palm oil responsibly. External Communications This plan will be made public, available for anyone to review, provide feedback or challenge. To be successful, we know we have to go outside the organisation and work closely with our customers and suppliers, but also engage with partners on key aspects of the plan. We don t have all the answers ourselves, and finding those partners will be critical. sustainability@2sfg.com address is already up and running. sites Where we make our food is the heart and soul of the business, and this is where we must focus our actions and support. Sites and functions will plan to deliver the targets relevant to their area of responsibility, and progress will be regularly reviewed. Performance To ensure we can effectively review performance, measures have been set for each of the targets detailed on pages 8 to 14 and these will be reviewed by the 2 Sisters Board. Plan Review To ensure we are working towards the right visions and targets, the entire programme will be reviewed at least every two years by a cross-sectional group of people from our business and selected third parties as appropriate. As we learn more, we will continue to look for opportunities to make our progress public, sharing our performance and learning so that others may use what we learn on their journey. 15

16 For more information about our, please /