Cavron Coconut BBQ Briquettes: A Sustainable and Green Production Process from Coconut to Grill, with Focus on Suppliers and Employees

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1 Cavron Coconut BBQ Briquettes: A Sustainable and Green Production Process from Coconut to Grill, with Focus on Suppliers and Employees 1

2 North Sulawesi, Indonesia the Natural Home of the Coconut Cavron Global produces superior quality charcoal briquettes from the shells of coconuts growing in abundance in North Sulawesi, Indonesia, where we both harvest our coconuts and produce our briquettes. This tropical island provides ideal conditions for the cultivation of high quality coconuts and is home to a vast number of coconut palm plantations owned and operated by local farmers. The coconut shell is a waste product turned into a very superiour quality charcoal product with substantial benefits for both the local community and the end user. Ideal conditions for the cultivation of high quality coconuts - the raw material of our charcoal... North Sulawesi, Indonesia the Natural Home of the Coconut 2 3

3 Not a Single Tree is Cut Down in the Process as a matter of fact, the use of coconut shells reduces the overall need for logging. The use of coconut shells offers a sustainable, fully renewable and highly eco-friendly alternative to regular wood charcoal and fossilized coal as it is a waste product from the coconut production. In other words, harvesting coconuts does not put any strain on the environment on the contrary it reduces the need for the cutting down trees to produce traditional charcoal. As such it is instrumental in improving the overall state of the environment. Barbecuing with coconut shell charcoal equals loving the world with all its green. The use of coconuts reduces the overall need for the felling of trees Not a Single Tree is Cut Down in the Process Coconuts are a natural part of Indonesian life. It has been used for millennia but only recently as the basis of charcoal briquettes. 4 5

4 Technology Transfer, Know-How and Education of Local Farmers in Improved Production Methods After the coconuts have been harvested, they are split in half. The coconut water can be used in many ways, also as a valuable fertilizer in the plantation, and the white meat is sent to local mills for further processing mainly used for coconut oil. The remaining shells are then carbonised into charcoal. Cavron has initiated an ongoing program by installing modern carbonisation ovens (Adan Retort kilns) and educating the local farmers in their correct use. This is ensuring vastly improved production methods via our know-how. This has three major advantages: A much more uniform carbonisation A closed system with no earth and stones - pollutants in the traditional way of carbonisation which is now avoided Less waste of material as everything is kept within the closed system Furthermore, we have improved the system by installing active carbon filters in the chimneys, vastly reducing emissions of any kind. An Adam Retort kiln used for carbonisation of the coconut shells. It results in highly reduced pollution and a charcoal of superiour quality with minimum waste. Ensuring vastly improved production methods and a superiour briquette-quality via our know-how... Technology Transfer, Know-how and Education 6 7

5 A Better Charcoal Quality Means a Better Price Paid to the Local Farmers for Their Carbonised Shells This improved oven technology has two major benefits. Firstly, it provides a much better quality of carbonised shells because of the highly controlled, pollution-free carbonisation process. Secondly, it gives Cavron the ability to support local farmers by paying a significantly higher price as the product is of much higher quality. Via our BSCI-certification we are deeply committed to our overall social responsibilities. We consider this a substantial win-win situation for both the local community and Cavron. A local farmer preparing the harvested coconut for its many uses. Via our BSCI-certification we are deeply committed to our social responsibilities... A Better Charcoal Quality Means a Better Price Paid to the Local Farmers 8 9

6 A Chemical-Free Production All the Way to the Grill Once received at our factory, the carbonised shells are pulverised into granulate of different sizes for different purposes one of them being the production of briquettes. In this process, the granulate is mixed with water and a specially formulated all-natural starch binder 100% free of any chemicals. Aside from the obvious eco-friendly aspects of this, it means that our briquettes result in cleaner barbecuing and better tasting food. All-natural starch binder 100% free of chemicals... A Chemical-Free Production - All the Way to the Grill From coconut tree to our high quality briquettes

7 The Coconut Shell is a Waste Product Turned into a Large Job-Creator The large-scale use of coconut shells as fuel for BBQs has, in effect, resulted in a whole new area of jobs both at the level of the local farmers and, of course, in the production of the briquettes themselves at our plant. This is good news in an area and a community with a local population in dire need of financial input. Furthermore, it has given rise to spin-off production at other local businesses such as offset print-houses, packaging manufacturers and test laboratories. A whole new area of jobs created... The Coconut Shell is a Waste Product Turned into a Large Job-Creator Coconut shells - a waste product that has helped creating a whole new job-market due to its qualities as charcoal

8 Better Employee Welfare in the Work Place PT Cavron Global is proud to be approved by the BSCI. This gives us motivation in terms of our daily conduct and the sustainable culture we build as a responsible company. We will continue to work on upholding the BSCI Code of Conduct and respect the highest standards of labour protection and human rights. What is BSCI? The Business Social Compliance Initiative (BSCI) is a leading business-driven initiative that supports retailers, importers and brands to improve working conditions worldwide. It is applicable to different sizes of companies and covers all products sourced from any country. Its Code of Conduct is based on the most fundamental labour standards that protect the workers rights, including the International Labour Organization (ILO) Conventions. The BSCI provides companies with practical management, auditing tools and guidelines to implement BSCI s Code of Conduct and to monitor improvement of working conditions in supply chains. Participating companies are invited to actively develop sustainable working conditions in the global supply chain. Today, PT Cavron Global has been approved by the BSCI and become one of its participating members. Via our BSCI-certification we are deeply committed to our social responsibilities... Better Employee Welfare in the Workplace 14 15

9 Welfare Also Means Health and Safety As a dedicated and responsible company, passionate employees are our most valuable resource. Hence, it is important for us to create a workplace where people enjoy coming to work every day. This gives us motivation in terms of our daily conduct and the sustainable culture we build. Occupational health and safety (OHS) We have made every effort to enhance our social compliance. All the commitment and efforts have proven to be worthwhile. Today, PT Cavron Global has been approved by the BSCI and become one of its participating members. This includes an ongoing process dedicated to creating a healthy and safe work environment. At Cavron we have devised a Danish-standard OHS-program as part of our overall CSR plan. Via our BSCI-certification we are deeply committed to our social responsibilities... Welfare Also Means Health and Safety 16 17

10 Our 6-Point CSR Plan in a Nut-Shell 1. No trees are being cut down on the contrary the use of coconut shells reduces the need for logging 2. Technology transfer and education resulting in improved production methods and a higher product quality 3. A better product quality means a higher price paid to local farmers % chemical-free coconut charcoal briquettes 5. A waste product that has been turned into a job-creator 6. Better employee welfare, health and safety via our BSCI-certification It is fair to say that Cavron s coconut shell charcoal production in North Sulawesi has had a profound and positive impact on both the environment and the local community North Sulawesi, Indonesia. We re very happy and proud about this fact, as it lies naturally in us as Scandinavians to care for both the eco-system and the people around us. Cavron s coconut shell charcoal production in North Sulawesi has had a profound and positive impact... Our 6-point CSR Plan in a Nut-Shell 18 19

11 Who We Are Cavron Global, part of the Danish Longhi Group and with global shareholders, is a well-established coconut charcoal granulate and briquette manufacturer with production in Manado, North Sulawesi, Indonesia. We are committed to and known for producing and supplying coconut charcoal products of the highest quality to our customers worldwide. Caring for Environment, Society and Employees As one of the largest employers in the region with more than 200 employees we take our CSR commitment very seriously. Maintaining a good working relationship with the local community in general and the coconut farmers who supply our raw material specifically is of the utmost importance to us. Cavron has for example installed modern carbonisation kilns for the local farmers enabling them to create charcoal of a much higher quality while reducing pollution. At the same time this allows us to pay a significantly higher price for the carbonised coconut shells a win-win situation for both the local community and Cavron. Cavron employees enjoy European-standard employment and workspace conditions, facilities and benefits. A Streamlined Production Our BSCI-certified production plant in Manado is well developed and managed by a European team working directly together with our local employees toward our high and eco-friendly production standard. It is streamlined throughout the entire manufacturing process from carbonisation (done by local farmers under our consultation) to packaging and shipping. Continuous testing of the charcoal ensures a consistent and uniformly high quality. It is CO₂ neutral and 100% chemical-free without any additives. As Scandinavians we feel a natural obligation to both the eco-system and the people around us... CAVRONGLOBAL.COM 20