Sustainable Sourcing Policy Dairy Products
Introduction While many countries produce dairy for their own needs, there are a number of countries producing and exporting dairy and its derivatives. These include some European countries and also the United States, India, New Zealand. Other countries like Argentina and Uruguay are growing in importance. In producing countries dairy farming structures and models vary significantly, which in turn creates different sustainability challenges. Nevertheless, the principles outlined in this policy are applicable globally and important to us regardless of dairy production systems. This policy is an integral part of our Sustainable Sourcing Policy for Ingredients and must be read in conjunction with it. Policy Framework The framework for this policy is provided by the Practices and Principles for Sustainable Dairy Farming (2015) developed by the Sustainable Agriculture Initiative (SAI) Platform Dairy Working Group. These Principles and Practices are aligned with the Global Dairy Agenda for Action program (Dairy Sustainability Framework) and in conjunction with these provide an appropriate framework to advance sustainability in the dairy sector.
Sustainable dairy principles While this list of principles is not meant to be comprehensive, we highlight a number of principles that we consider particularly important: Animal welfare: implement the concept of the five freedoms to ensure acceptable welfare conditions. Dairy animals are free from hunger and thirst, discomfort, pain, injury and disease, fear and distress. Greenhouse gas emissions (GHG): GHG emissions are quantified and monitored and a plan and targets for minimizing of GHG emissions are defined, addressing the entire dairy value chain, such as dairy herd, manure storage and application, other on-farm operations, equipment and energy/fuel usage, and offfarm inputs. Water: a water management system ensures its efficient use and water quality. Biodiversity conservation: assess impacts on biodiversity and develop strategies to maintain and enhance biodiversity. Waste: the generation of waste is minimized and waste reduction and recycling management plans established. Working conditions: ensure safe and healthy working and fair employment conditions across the dairy value chain. Soil health and fertility: manage soil quality, retention, productivity and structure to ensure optimal use, e.g. for animal feed production. Soil nutrients: minimize impacts of nutrient application (e.g. nitrogen and phosphate) on water and air. Control and reduction of pollutant loads in effluents. Manure management.
GHG emissions According to a report by the Food and Agriculture Organization of the United Nations (FAO), the dairy sector accounts for around four percent of all global greenhouse gas emissions (GHG), resulting from human activity. This assessment is based on a life cycle approach and includes emissions from the production, processing and transportation of dairy products as well as emissions related to meat produced from animals originating from the dairy system. We ask our suppliers to adopt best practices with regards to the reporting of greenhouse gas emissions and the use of the latest technologies, methodologies, and scientific evidence in mitigation strategies. We require from our suppliers regular reporting of greenhouse gas emissions per unit of product. Commitment We expect all suppliers to work towards greater convergence of sustainability approaches and activities in this field (see policy framework and chapter 2 of our Sustainable Sourcing Policy Ingredients). We also expect all suppliers to work towards the stated principles and to regularly show significant progress. This will be evaluated based on our suppliers sustainability program results and reports, and personal communication. We buy preferably from and will develop business with suppliers that help us work towards the principles stated above and show tangible progress in improving the sustainability of the dairy products we use. In case Barry Callebaut becomes aware of a supplier violating the stated principles, we will request the immediate implementation of corrective measures.
Reporting We will provide regular updates of activities on our website (www.barry-callebaut.com/sustainability) and our annual Barry Callebaut Sustainability Report. This policy is effective immediately, 26 November 2015. Disclaimer This policy is the Company s general guideline and management reserves the right to apply different terms, as determined in management s sole discretion. This policy can be changed at any time, with or without notice by the company. Nothing in this policy shall apply to the extent it would be inconsistent with any applicable law Last updated January12, 2016
Supplier Declaration We the undersigned hereby confirm that: We have received and taken due note of Sustainable Sourcing Policy Dairy Products, status as January 12, 2016. We are responsible for being aware of all relevant laws and regulations of the country or countries in which our company operates. We will inform Barry Callebaut in case of conflict between provisions of the Barry Callebaut Sustainable Sourcing Policy Dairy Products and any applicable laws or regulations in our countries of operation We will make aware as appropriate our relevant employees in relevant functions (e.g. sourcing, operations, value chain, quality, legal, among others), agents and subcontractors about the Barry Callebaut Sustainable Sourcing Policy Dairy Products and ensure that they comply with the provisions therein We will observe and conform to the Barry Callebaut Sustainable Sourcing Policy Dairy Products. We will provide upon Barry Callebaut s request relevant documentation supporting our compliance with the Sustainable Sourcing Policy Dairy Products provisions. Please sign and complete the next page and return this Supplier Declaration as noted to Barry Callebaut Sourcing AG.
1 Supplier Declaration Sustainable Sourcing Policy Dairy Products, status as January 12, 2016 DATE / SIGNATURE NAME (PLEASE USE BLOCK LETTERS) TITLE COMPANY EMAIL PHONE COMPANY ADDRESS Please return the signed and dated Supplier Declaration to: Barry Callebaut Sourcing AG Attention: Sustainability Manager Global Sourcing Pfingstweidstrasse 60 CH-8005 Zurich Switzerland Fax: +41 43 204 04 00 Email: oliver_von_hagen@barry-callebaut.com